Board Meeting and Governance - The board meeting for China Electronics Huada Technology Company Limited is scheduled for March 28, 2024, to approve the annual results for the year ending December 31, 2023[2] - The board consists of two non-executive directors, two executive directors, and three independent non-executive directors[2] - The chairman of the board is Xu Haidong, with Chang Feng serving as vice chairman and deputy managing director[2] Financial Performance and Outlook - The company has not yet released any financial performance data or user metrics for the year ending December 31, 2023[2] - There are no specific future outlooks or performance guidance provided in the current announcement[2] Product and Market Information - No new products or technologies have been mentioned in the announcement[2] - There is no information regarding market expansion or mergers and acquisitions in the current communication[2] Strategic Initiatives - The announcement does not detail any new strategies being implemented by the company[2] Responsibility and Communication - The company emphasizes that the Hong Kong Stock Exchange and its subsidiaries are not responsible for the accuracy or completeness of the announcement[1] - The announcement was made on March 18, 2024, prior to the scheduled board meeting[2]

Financial Performance - Revenue for the six months ended June 30, 2023, was HK$1,807,007,000, representing a 55.8% increase from HK$1,159,157,000 in the same period of 2022[9] - Gross profit for the period was HK$840,667,000, with a gross margin of approximately 46.5%, compared to HK$467,085,000 and a margin of 40.3% in 2022[9] - Operating profit increased significantly to HK$636,615,000, up from HK$239,722,000, marking a 165.5% year-over-year growth[9] - Profit for the period attributable to owners of the Company was HK$552,885,000, compared to HK$203,191,000 in 2022, reflecting a 171.5% increase[9] - Basic earnings per share rose to 27.24 HK cents, up from 10.01 HK cents in the previous year[9] - Total comprehensive income for the period was HK$477,164,000, compared to HK$151,747,000 in 2022, indicating a substantial increase[11] Assets and Liabilities - Total assets increased to HK$4,597,697, up 13.3% from HK$4,056,750 as of December 31, 2022[13] - Total equity attributable to owners rose to HK$1,967,457, reflecting a 19.0% increase from HK$1,652,683[15] - Cash and cash equivalents at the end of the period reached HK$1,216,178, an increase of 7.4% from HK$1,172,748[21] - Non-current liabilities increased to HK$414,941, up from HK$387,830, indicating a rise in long-term obligations[15] - Current liabilities totaled HK$2,215,299, an increase from HK$2,016,237, reflecting higher short-term financial commitments[15] Cash Flow and Investments - Net cash flows generated from operating activities amounted to HK$387,497, significantly up from HK$123,223 in the previous year[19] - The company incurred a net cash outflow from investing activities of HK$290,044, compared to a net inflow of HK$11,000 in the previous year[19] - The Group's investment properties measured at fair value decreased from HK$49,199,000 at the end of 2022 to HK$47,769,000 by June 30, 2023, reflecting a fair value change of HK$1,430,000 during the period[34] Research and Development - The management highlighted ongoing research and development efforts aimed at enhancing product offerings and operational efficiency[8] - Research and development costs recognized as expenses for the six months ended June 30, 2023, were HK$162,991,000, an increase from HK$158,517,000 in 2022[44] - The Group plans to strengthen investment in research and development in the Internet of Things and intelligent connected vehicles sectors to enhance product competitiveness[84] Market Strategy and Growth - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[8] - The Group's revenue growth was supported by increased sales volume and higher average selling prices of key products[80] - The Group's promotion efforts in the Internet of Things and intelligent connected vehicles markets have started to yield results[80] - The demand for secure element chips is expected to increase in innovative sectors, providing growth opportunities for the Group's secure element chips business[83] Financial Management and Governance - The Group has not experienced any significant changes in financial risk management policies since December 31, 2022, maintaining stability in its approach to managing market, credit, and liquidity risks[30] - The Group's financial risk exposure includes market risk, credit risk, and liquidity risk, which are continuously monitored to mitigate potential impacts on operations[27] - The Company has complied with all applicable code provisions in the Corporate Governance Code throughout the six months ended June 30, 2023[103] Employee and Management - As of June 30, 2023, the Group employed approximately 410 employees, with employee benefits expenses amounting to HKD 141.9 million[95] - Key management compensation decreased to HK$1,323,000 from HK$3,266,000, a decline of 59%[67] - The Group's employee training is structured at three levels: corporate, departmental, and individual, focusing on various skill enhancements[95] Future Outlook - Future outlook indicates a projected revenue growth of 20% for the next fiscal year, driven by new product launches[106] - New product lines are expected to contribute an additional HKD 300 million in revenue over the next year[106] - Operational efficiency initiatives are projected to reduce costs by 5% in the upcoming quarter[106]

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 1,807,007 thousand, representing a 55.8% increase from HKD 1,159,157 thousand in the same period of 2022[3] - Operating profit for the same period was HKD 636,615 thousand, up from HKD 239,722 thousand, indicating a significant growth[3] - Net profit for the period was HKD 551,366 thousand, compared to HKD 202,053 thousand in the previous year, reflecting a 172.5% increase[4] - Basic earnings per share increased to HKD 27.24 from HKD 10.01, marking a substantial rise[4] - Profit attributable to equity holders for the same period was HKD 552.9 million, up 172.1% year-on-year[21] Assets and Liabilities - Total assets as of June 30, 2023, amounted to HKD 4,597,697 thousand, an increase from HKD 4,056,750 thousand at the end of 2022[7] - The company held cash and cash equivalents of HKD 1,216.2 million as of June 30, 2023, compared to HKD 1,172.7 million as of December 31, 2022[26] - Bank and other borrowings amounted to HKD 596.5 million as of June 30, 2023, all due within one year and denominated in RMB[26] - The net current asset value as of June 30, 2023, was HKD 1,883.5 million, an increase from HKD 1,538.7 million as of December 31, 2022[27] - Non-controlling interests showed a slight increase in equity to HKD 1,941,676 thousand from HKD 1,625,625 thousand[7] Revenue Sources and Market Focus - The company operates primarily in the mainland China market, with close to 100% of its revenue derived from this region[11] - The company’s revenue for the six months ended June 30, 2023, was HKD 1,807.0 million, an increase of 55.9% compared to the same period last year[21] Expenses and Cost Management - The company incurred research and development costs of HKD 162.99 million for the six months ended June 30, 2023, compared to HKD 158.52 million in 2022[14] - Sales and marketing expenses for the six months ended June 30, 2023, were HKD 26.1 million, a decrease of 24.8% year-on-year, representing 1.4% of revenue compared to 3.0% in the same period last year[23] - Administrative expenses for the six months ended June 30, 2023, were HKD 207.8 million, down 2.3% year-on-year, accounting for 11.5% of revenue compared to 18.3% in 2022[23] - Research and development costs included in administrative expenses for the six months ended June 30, 2023, were HKD 163.0 million, up from HKD 158.5 million in 2022, representing 9.0% of revenue compared to 13.7% in 2022[23] Tax and Financing - The company recognized a tax expense of HKD 73.32 million for the six months ended June 30, 2023, compared to HKD 24.25 million in 2022[15] - The financing costs for the six months ended June 30, 2023, were HKD 12.21 million, down from HKD 13.75 million in 2022[13] - The company’s interest income increased to HKD 17.57 million from HKD 10.65 million in the previous year[12] Research and Development - The company added 18 new patents and registered 1 new software copyright in the first half of 2023[22] - The company will focus on increasing research and development investment in the Internet of Things and intelligent connected vehicle security chip sectors to enhance product competitiveness[25] Dividends - The company did not declare any dividends for the six months ended June 30, 2023[17] - The board has resolved not to declare any dividends for the six months ended June 30, 2023[25] Comprehensive Income - The company reported a total comprehensive income of HKD 477,164 thousand for the period, compared to HKD 151,747 thousand in the previous year[5] Sales Performance - The total sales volume increased by 13.7% compared to the same period last year[22] Overall Financial Position - The company remains in a net cash position as of June 30, 2023, with no significant capital commitments or contingent liabilities[27]

Financial Performance - The Group achieved sales revenue of HK$2,483.1 million for the year 2022, representing an increase of 47.7% compared to the previous year[9]. - Profit attributable to shareholders was HK$531.4 million, reflecting a significant increase of 323.6% year-over-year[9]. - Basic earnings per share rose to HK26.18 cents, up from HK6.18 cents in 2021[15]. - The Group's revenue for the year ended December 31, 2022, was HK$2,483.1 million, representing a 47.7% increase compared to the previous year[20]. - Profit attributable to equity holders of the Company was HK$531.4 million, a 323.6% increase year-on-year[17]. - Total sales volume increased by 10.3% compared to last year, driven by strong demand for eSIM chips and secure element chips[19]. - Gross profit for 2022 was HK$1,112,245,000, compared to HK$570,532,000 in 2021, indicating a significant increase of about 94.9%[191]. - Operating profit rose to HK$631,945,000 in 2022, up from HK$139,332,000 in the previous year, reflecting a growth of approximately 353.5%[191]. - Profit for the year attributable to owners of the company was HK$531,431,000, compared to HK$125,444,000 in 2021, marking an increase of around 323.5%[191]. - Proposed dividend for 2022 is HK$162,390,000, significantly higher than HK$38,568,000 in 2021, which is an increase of approximately 320.5%[191]. - Other income for 2022 was HK$45,416,000, up from HK$33,529,000 in 2021, indicating a growth of approximately 35.4%[191]. - Finance income increased to HK$14,060,000 in 2022 from HK$2,428,000 in 2021, reflecting a growth of about 478.5%[191]. - Total comprehensive income for the year was HK$417,254,000, up from HK$161,627,000 in the previous year, indicating a year-over-year increase of about 158%[192]. - The company's total assets rose to HK$4,056,750,000 in 2022, compared to HK$2,840,990,000 in 2021, reflecting an increase of approximately 42.7%[194]. - Current assets saw a substantial increase to HK$3,554,985,000 in 2022 from HK$2,286,530,000 in 2021, marking a growth of around 55.6%[194]. - The equity attributable to owners of the Company increased to HK$1,652,683,000 in 2022 from HK$1,273,997,000 in 2021, representing a growth of about 29.6%[196]. - Cash and cash equivalents rose sharply to HK$1,172,748,000 in 2022 from HK$517,932,000 in 2021, reflecting an increase of about 126.5%[194]. Research and Development - The Group obtained 25 new patents, registered 2 new software copyrights, and 4 new integrated circuits layout designs in 2022[16]. - The Group plans to strengthen research and development in secure element chips for intelligent connected vehicles and the Internet of Things[12]. - Research and development costs for the year amounted to HK$348.1 million, representing 14.0% of revenue, down from 16.2% in the previous year[23]. - Government grants recognized as income increased by 134.5% to HK$18.9 million due to higher subsidies for research and development costs[25]. Corporate Governance - The Board comprised two executive directors, two non-executive directors, and three independent non-executive directors as of December 31, 2022[29]. - The Group's corporate governance practices complied with all applicable code provisions in the CG Code throughout the year ended December 31, 2022[28]. - The Board is responsible for formulating long-term business objectives and monitoring the Group's financial performance[32]. - The Board has implemented mechanisms to ensure independent views and input are available, including annual meetings with independent non-executive directors[38]. - The Company maintains appropriate insurance on directors' liabilities to protect against potential legal liabilities incurred while performing their duties[40]. - The audit committee, comprising three independent non-executive directors, is responsible for monitoring the external auditor's independence and the effectiveness of the audit process[52]. - The audit committee oversees the Group's financial, risk management, and internal control systems, reporting annually to the Board on their effectiveness[64]. - The Company engaged SHINEWING Risk Services Limited to conduct an annual review of its risk management and internal control systems for the year ended December 31, 2022, with the Board satisfied that these systems were effective and adequate throughout the year[68]. Shareholder Communication - The Company has established procedures for handling and disseminating inside information to ensure timely communication with stakeholders[69]. - The Board is responsible for the handling and dissemination of inside information, with regular reviews of the effectiveness of these procedures[69]. - The Company allows shareholders to propose candidates for election as directors, requiring a written notice of intention and the candidate's consent[79]. - The company maintains a continuous dialogue with shareholders through various channels, including annual general meetings where the Board answers questions regarding the Group's performance[82]. - The Board has reviewed the implementation of the Shareholders' Communication Policy in 2022 and found it to be appropriate and effective[87]. - Shareholders can send inquiries to the Board through the company secretary, ensuring open communication[84]. Market and Industry Trends - The global integrated circuits industry is expected to enter a downward cycle, but favorable operating trends are anticipated to continue in the first half of 2023[11]. - The demand for applications in intelligent connected vehicles and the Internet of Things is gradually emerging, driven by the standardization of policies and standards in these sectors[12]. - The integrated circuits market in the PRC is highly competitive with short product cycles, and the Group's performance relies on the successful execution of its business strategy[112]. - The Group's revenue is primarily dependent on the growth of the information technology industry in the PRC, particularly the electronic information technology sector[111]. Employee and Board Diversity - Employee benefit expenses for the year amounted to HK$299.2 million, with approximately 420 employees, of which 35.6% were female[27]. - The Group's policy on board diversity includes two female directors, with a view that one female representation is sufficient[34]. - The Company will invest more resources in training and recruiting high-performing female employees to promote them to senior management or directorship[37]. - The attendance record for directors at meetings in 2022 shows high engagement, with non-executive directors attending 100% of meetings[90]. Related Party Transactions - The company did not enter into any significant transactions or contracts with controlling shareholders during the year[129]. - The Company entered into a business services agreement with CEC, effective from July 1, 2021, to June 30, 2024, for technology development and procurement of materials[134]. - The maximum daily balance of deposits with CEC Finance shall not exceed RMB 700 million, and the actual balance during the year ended December 31, 2022, did not exceed this amount[137]. - The maximum amount of financial assistance provided by CEC Finance to the Group shall not exceed RMB 700 million on any given day, with actual balances not exceeding this amount during the year ended December 31, 2022[137]. - The Company entered into a master property management agreement with CEC for a term of three years from January 1, 2021, to December 31, 2023[134]. Audit and Compliance - The independent auditor, PricewaterhouseCoopers, has audited the consolidated financial statements for the year ended December 31, 2022, ensuring compliance with Hong Kong Financial Reporting Standards[164]. - The audit report confirms that the financial statements have been properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance[164]. - The Group's management is responsible for the internal control and assessment process related to the provision for expected credit losses[168]. - The audit committee reviewed the audited consolidated financial statements for the year ended December 31, 2022[154].

Financial Performance - The total revenue for the year ended December 31, 2022, was HKD 2,483,114, an increase of 47.7% compared to HKD 1,681,654 in 2021[2] - The gross profit for 2022 was HKD 1,112,245, representing a gross margin of approximately 44.8%, up from HKD 570,532 in 2021[2] - The net profit for the year was HKD 532,887, a significant increase of 318.5% from HKD 127,319 in 2021[3] - Basic earnings per share for 2022 were HKD 26.18, compared to HKD 6.18 in the previous year, reflecting a growth of 323.5%[3] - The company reported a profit before tax of HKD 607,842,000 for 2022, significantly higher than HKD 112,612,000 in 2021, marking an increase of around 440.5%[16] - Profit attributable to equity holders was HKD 531.4 million, up 323.6% year-on-year, with basic earnings per share at HKD 0.2618 (2021: HKD 0.0618)[22] Assets and Equity - The total assets as of December 31, 2022, amounted to HKD 4,056,750, an increase from HKD 2,840,990 in 2021[6] - The total equity attributable to the company's equity holders was HKD 1,625,625, compared to HKD 1,247,890 in 2021, showing a growth of 30.3%[6] Cash and Liquidity - The company's cash and cash equivalents increased to HKD 1,172,748 in 2022, up from HKD 517,932 in 2021, indicating improved liquidity[6] - The company held cash and cash equivalents of HKD 1,172.7 million as of December 31, 2022, compared to HKD 517.9 million in 2021[27] Dividends - The company declared a dividend of HKD 162,390 for the year, significantly higher than HKD 38,568 in 2021[3] - The proposed dividend for the year 2022 is HKD 162,390,000, which translates to HKD 0.08 per share, compared to HKD 38,568,000 or HKD 0.019 per share in 2021[17] Inventory and Sales - The inventory as of December 31, 2022, was HKD 884,693, a substantial increase from HKD 531,651 in 2021, indicating potential growth in sales[5] - Total sales volume increased by 10.3% year-on-year, driven by strong demand for eSIM chips and security chips for smart connected vehicles[23] Research and Development - Research and development costs for the year ended December 31, 2022, were HKD 348,071,000, compared to HKD 271,795,000 in 2021, reflecting a year-over-year increase of about 28.1%[13] - Research and development costs rose to HKD 348.1 million (14.0% of revenue) from HKD 271.8 million (16.2% of revenue) in 2021, focusing on security chip development[24] - Government grants recognized as income increased by 134.5% to HKD 18.9 million due to higher R&D costs[25] Financing and Liabilities - The company reported a net financing income of HKD 14,060 for 2022, compared to HKD 2,428 in 2021, reflecting improved financial management[2] - The net financing costs for 2022 were HKD 25,410,000, a decrease from HKD 26,828,000 in 2021, showing a reduction of approximately 5.3%[14] - Contract liabilities recognized as of December 31, 2022, amounted to HKD 406,216,000, up from HKD 34,968,000 in 2021, indicating a substantial increase in customer prepayments[10] Employment and Governance - As of December 31, 2022, the group employed approximately 420 employees, with total employee benefits expenditure amounting to HKD 299.2 million[29] - The group has a rigorous recruitment policy and performance evaluation plan to ensure the retention of talented employees[29] - The company complied with all applicable provisions of the corporate governance code as per the listing rules for the year ended December 31, 2022[31] Audit and Reporting - The audit committee reviewed the audited consolidated financial statements for the year ended December 31, 2022[30] - The auditor, PwC, confirmed that the figures in the financial statements are consistent with the audited consolidated financial statements for the year ended December 31, 2022[32] - The 2022 annual report will be published on the company's website and the Hong Kong Stock Exchange website at a later date[33] Future Outlook - The company anticipates a challenging operating environment in 2023 due to increased competition and changing market dynamics, but expects to maintain a good operating trend in the first half[26] - The company plans to enhance R&D investments in security chips for smart connected vehicles and the Internet of Things, aligning with market demands[26]

Financial Performance - Revenue for the six months ended June 30, 2022, was HK$1,159,157,000, representing a 38.5% increase from HK$836,761,000 in the same period of 2021[8] - Gross profit for the period was HK$467,085,000, with a gross margin of approximately 40.3%, compared to HK$254,852,000 in 2021[8] - Profit for the period attributable to owners of the Company was HK$203,191,000, a significant increase from HK$59,256,000 in the prior year, reflecting a growth of 242%[8] - Basic earnings per share increased to HK$10.01 from HK$2.92, indicating strong profitability growth[8] - Total comprehensive income for the period was HK$151,747,000, compared to HK$71,370,000 in 2021, marking a 112.5% increase[10] - The Company reported operating profit of HK$239,722,000, up from HK$76,454,000 in the previous year, showing a growth of 213%[8] - The Group's total other income for the six months ended June 30, 2022, was HK$24,880,000, significantly up from HK$13,490,000 in 2021, marking an increase of approximately 84.5%[45] - The Group's profit before taxation for the six months ended June 30, 2022, was impacted by various costs, including depreciation and amortization, totaling HK$10,879,000, HK$12,150,000, and HK$16,009,000 respectively[48] - Current taxation for the six months ended June 30, 2022, was HK$18,861,000, compared to HK$4,498,000 in 2021, showing a significant increase[50] Assets and Liabilities - Total assets increased to HK$3,456,568, up 21.7% from HK$2,840,990 as of December 31, 2021[12] - Current assets rose to HK$2,748,940, representing a 20.3% increase from HK$2,286,530 at the end of 2021[12] - Total liabilities increased to HK$2,069,392, up from HK$1,566,993, indicating a rise in financial obligations[14] - Non-current liabilities decreased to HK$14,732 from HK$27,441, reflecting a reduction in lease liabilities[14] - Trade receivables as of June 30, 2022, totaled HK$667,219,000, an increase from HK$536,284,000 as of December 31, 2021, showing a growth of approximately 24.4%[59] - Current trade payables amounted to HK$371,030,000 as of June 30, 2022, compared to HK$207,890,000 as of December 31, 2021, reflecting an increase of about 78.5%[61] - The Group's net current assets increased to HK$1,063.2 million as of June 30, 2022, up from HK$769.5 million as of December 31, 2021[90] Cash Flow and Financing - Net cash flows generated from operating activities were HK$153,020, compared to a net cash outflow of HK$138,642 in the same period last year[18] - Cash and cash equivalents at the end of the period were HK$610,045, an increase of 17.6% compared to HK$517,932 in the previous year[20] - The Group reported a net increase in cash and cash equivalents of HK$115,567, compared to HK$255,420 in the previous year[20] - As of June 30, 2022, the Group's bank and other borrowings amounted to HK$643.1 million, all due within one year and denominated in Renminbi, compared to HK$672.7 million as of December 31, 2021[90] - The Group had committed borrowing facilities available but not drawn amounting to HK$749.4 million as of June 30, 2022[90] Operational Costs - Administrative expenses were HK$212,592,000, which is an increase from HK$156,249,000 in 2021, indicating a rise in operational costs[8] - Selling and marketing costs decreased by 18.9% to HK$34.7 million, with the percentage of these costs to revenue dropping from 5.1% to 3.0%[84] - Research and development costs recognized as an expense amounted to HK$158,517,000 for the six months ended June 30, 2022, compared to HK$108,036,000 in 2021, reflecting a rise of approximately 46.7%[48] - Research and development costs amounted to HK$158.5 million, representing 13.7% of revenue, up from 12.9% in the previous year[87] Market and Product Development - The Company aims to expand its market presence and enhance product offerings, focusing on new technology development and strategic partnerships[7] - Demand for eSIM chips, intelligent connected vehicle secure element chips, and high-end SIM chips saw significant growth, contributing to increased sales volume[82] - The timing of demand for identity authentication products has shifted to the second half of 2022, expected to compensate for the shortfall in the first half[82] - The Group's integrated circuits design operation focuses on sectors such as identity authentication, financial payment, and Internet of Things[79] - The domestic integrated circuits industry's production capacity is expected to remain tight in 2022, with a slight easing anticipated by mid-2023[89] - The Group plans to strengthen upstream and downstream cooperation in the industrial chain to enhance competitiveness in the security chip industry[89] - Demand for security chips is expected to grow due to emerging applications in 5G, intelligent connected vehicles, and the Internet of Things[89] Corporate Governance - The Group's financial statements have been prepared in accordance with HKFRSs and HKASs, ensuring compliance with the applicable disclosure requirements[22] - The Company has complied with all applicable code provisions in the Corporate Governance Code throughout the six months ended June 30, 2022[103] - All directors confirmed full compliance with the Model Code for Securities Transactions throughout the six months ended June 30, 2022[104] - The Company emphasizes accountability, transparency, independence, responsibility, and fairness in its corporate governance practices[103] Shareholder Information - The Group did not declare any dividend for the six months ended June 30, 2022, consistent with the previous year[9] - As of June 30, 2022, China Electronics Corporation (BVI) Holdings Company Limited held 812,500,000 shares, representing 40.03% of the issued share capital[98] - Huada Semiconductor Co., Ltd held 1,206,180,000 shares, representing 59.42% of the issued share capital as of June 30, 2022[98] - The Company did not purchase, sell, or redeem any of its shares during the six months ended June 30, 2022[102]