香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 TIANLI HOLDINGS GROUP LIMITED 天利控股集團有限公司 （於開曼群島註冊成立之有限公司） 117 （股份代號： ） 2023 6 30 截至 年 月 日止六個月未經審核中期業績公告 財務概要 • 2023 6 30 212.6 2022 截至 年 月 日止六個月的總收入約為人民幣 百萬元，較 年同 18.3 9.4% 期增加約人民幣 百萬元或 ； • 2023 6 30 8.2% 2022 1.9 截至 年 月 日止六個月的毛利率為 ，較 年同期增加 個百分 2023 6 30 MLCC 0.5% 2022 點；截至 年 月 日止六個月， 分部的毛損率為 ，而 年同期 0.2% 則為毛利率 ； • 2023 6 30 69.7 截至 年 月 日止六個月的本公司擁有人應佔虧損為人民幣 百萬元， 2022 47.5 ...

Financial Performance - The Group's total revenue for the year ended December 31, 2022, was RMB 361.4 million, a decrease of approximately 34.1% compared to the previous year[15]. - The loss attributable to owners of the Company for the year was approximately RMB 68.8 million, compared to a profit of RMB 68.8 million in the previous year[15]. - In 2022, the Group achieved MLCC sales revenue of RMB 356.6 million, a decrease of 19.8% compared to 2021, with a gross profit margin of 3.1%, down from 25.7% in the previous year[35][37]. - Revenue from the MLCC segment was RMB 356.6 million, representing a decrease of RMB 88.0 million, or 19.8%, due to weakening market conditions[72]. - The aggregate gross profit margin for the year was 4.4%, a decrease of 35.4 percentage points from the previous year[73]. - The Group recorded a net loss from financial assets at fair value through profit or loss of RMB 33.7 million, compared to a profit of RMB 55.2 million in the previous year[72]. - The Group's other income decreased by 27.0% to RMB 13.9 million for the year ended December 31, 2022, primarily due to a reduction in government grants[78]. Assets and Liabilities - Total assets as of December 31, 2022, were RMB 1,816.7 million, an increase from RMB 1,589.5 million in 2021[4]. - Total liabilities increased to RMB 926.5 million in 2022 from RMB 641.1 million in 2021[4]. - The total equity attributable to owners of the Company was RMB 886.6 million as of December 31, 2022, down from RMB 939.2 million in 2021[4]. - As of December 31, 2022, the Group's bank and other loans increased by RMB 305.7 million to RMB 696.7 million, reflecting additional borrowings[104]. - As of December 31, 2022, the Group's accounts payable and notes payable amounted to RMB 608 million, a decrease of RMB 82 million compared to December 31, 2021, primarily due to reduced MLCC production[107]. - As of December 31, 2022, the Group had capital commitments of RMB 3,666 million, up from RMB 2,568 million on December 31, 2021, with significant commitments for plant construction and investment funds[113]. Market Conditions and Challenges - The market demand for consumer electronics has been sluggish for many quarters, impacting the demand for MLCC[16]. - Increased market supply and accelerated inventory clearance by distributors have led to intense competition in the mid-to-low end product segments[16]. - The geopolitical conflicts and fluctuating COVID-19 pandemic have significantly impacted global supply chains and increased costs[16]. - The Group's performance in 2022 was negatively impacted by COVID-19 and interest rate hikes in the UK and the US, leading to significant fluctuations in financial markets[22][24]. - The MLCC industry has been in a downward cycle since the second half of 2021, but is expected to rebound as economic recovery occurs and downstream distributor inventories are cleared[21][23]. Strategic Initiatives - The Company plans to address the challenges in the MLCC market through strategic adjustments and potential new product developments[15]. - The Group is increasing investment in research and development, focusing on industrial and automotive grade products, achieving bulk delivery comparable to international standards[26][28]. - The Group aims to enhance its core competency by investing in research and development, equipment, and automation to meet customer demands in the MLCC market[66]. - The Group plans to explore new markets and promote internationalization strategies to expand its market share[66]. - The Group's strategy includes the construction of new production bases to enhance operational capacity and meet market demands[165][167]. Corporate Governance - The Group is committed to high standards of corporate governance, complying with all applicable provisions of the Corporate Governance Code throughout the year ended December 31, 2022[170][174]. - The Board of Directors is responsible for overseeing the overall strategies and business performance of the Group, ensuring effective risk management and internal control[181][182]. - The Group has established three Board committees: Audit Committee, Nomination Committee, and Remuneration Committee, delegating various responsibilities to enhance governance[182]. - The independent non-executive directors have confirmed their independence in writing, in compliance with the Listing Rules[194]. - The company emphasizes the importance of adequate and reliable information being provided to all directors in a timely manner[193]. Management and Team - The Group's management team includes professionals with advanced degrees and specialized knowledge in their respective fields, contributing to product management and market development[166][167]. - The Group's MLCC segment is led by experienced executives with extensive backgrounds in engineering and management, ensuring strategic planning and operational efficiency[161][165][167]. - The company has a strong board of directors with members holding various qualifications and extensive experience in finance and management[150]. Investment and Financial Services - The Group's investment in six funds resulted in a net loss of RMB33.8 million, alongside asset management fee income of RMB38.5 million in 2022[53]. - The Group's total committed capital, after offsetting cross-holding effects, was approximately USD 647.8 million, with invested capital amounting to USD 75.8 million[54]. - The Group's investments were made in six countries, including Australia, Hong Kong, Korea, PRC, UK, and the US, with a total investment amount of USD 477.1 million[56]. - The Group will strengthen post-investment monitoring and management of existing projects to mitigate potential risks and safeguard investors' interests[67]. Research and Development - Research and development costs increased by RMB 11.2 million to RMB 56.3 million for the year ended December 31, 2022, as the Group focused on new product and technology development[81]. - The Group achieved significant breakthroughs in high-capacity and mid-high voltage specifications, realizing bulk delivery in 2022[40]. - The Group completed validation for various automotive-grade specifications and achieved bulk delivery in 2022[40]. Production Capacity and Facilities - New production bases have been established in Chuzhou and Dongguan to enhance production capacity and optimize product mixes, with the Chuzhou plant operational since January 2023[27][29]. - The construction of the new base in Dongguan commenced in the second half of 2022 and is progressing smoothly[41]. - The Group is moderately expanding production capacity despite short-term market challenges[41]. Risk Management - The Group is exposed to foreign exchange risks due to revenue and purchases denominated in multiple currencies, including Renminbi, US dollars, HK$, and Japanese Yen[137]. - The Group plans to adopt hedging measures to mitigate future foreign exchange risks[137].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 TIANLI HOLDINGS GROUP LIMITED 天利控股集團有限公司 （於開曼群島註冊成立之有限公司） 117 （股份代號： ） 2022 12 31 截至 年 月 日止年度之 全年業績公告 財務概要 • 2022 361.4 2021 34.1% 年的總收入為人民幣 百萬元，較 年下降 ； • 2022 15.8 2021 202.4 年的總毛利為人民幣 百萬元，較 年下降人民幣 百萬元或 92.8% ； • 2022 2021 35.4 4.4% MLCC 年的毛利率較 年下跌 個百分點至 ，其中 業務的毛利率 2021 25.7% 2022 3.1% 由 年的 下降至 年的 ； ...

Financial Performance - In the first half of 2022, the sales revenue of the MLCC segment amounted to RMB 182.4 million, representing a decrease of 31.2% compared to the first half of 2021[16]. - For the six months ended June 30, 2022, the Group's total revenue was RMB 194.3 million, a decrease of RMB 120.8 million or 38.3% compared to the same period in 2021[50]. - Revenue from the MLCC segment was RMB 182.4 million, representing a decrease of RMB 82.5 million or 31.2% due to weakening market conditions[50]. - The gross profit for the same period was RMB 12.22 million, significantly down from RMB 129.22 million in the previous year[121]. - The loss from continuing operations for the period was RMB 48.39 million, compared to a profit of RMB 28.11 million in the prior year[121]. - The total comprehensive loss for the period, net of income tax, was RMB 28.86 million, contrasting with a total comprehensive income of RMB 31.32 million in the previous year[121]. - The reportable segment loss for the six months ended June 30, 2022, was RMB (44,204,000), compared to a profit of RMB 51,911,000 in the same period of 2021[177]. Profitability and Margins - The gross profit margin of the MLCC segment was 0.2% for the first half of 2022, down from 29.8% in the same period of 2021[16]. - The gross profit margin for the six months ended June 30, 2022, was 6.3%, a decrease of 34.7% compared to the same period in 2021[51]. - The gross profit margin of the MLCC segment fell from 29.9% to 0.2% due to decreased sales and increased average costs[52]. Research and Development - The Group continued to invest in research and development, achieving breakthroughs in mini-sized high-capacity specifications and bulk delivery in the first half of 2022[21]. - The Group's strategy includes a commitment to traditional consumption-grade products while accelerating R&D in industrial and automotive-grade technologies[21]. - Research and development costs increased to RMB 29.8 million, an increase of RMB 7.9 million from the previous year, reflecting ongoing efforts in new product and technology development[61]. - Research and development costs for the current period amounted to RMB 29,793,000, an increase of 36.3% from RMB 21,866,000 in the same period of 2021[192]. Investments and Financial Services - In the first half of 2022, the total capital commitment of the managed funds was approximately US$647.8 million, with the Group committing about US$89.9 million and investing US$75.5 million[37]. - The six funds that the Group invested in contributed a net loss of RMB6.2 million to the Group's financial results, in addition to asset management fee income of RMB18.1 million[38]. - The Group's investment in the Tianli Private Debt Fund L.P. amounted to US$35.0 million, focusing on a wide range of private debt instruments[31]. - The Group's investment in the Tianli China Opportunities Fund I L.P. was US$17.5 million, targeting a project fund established for investment in Beijing[30]. - The Group's investment and financial services segment includes direct investments in debt, equity, asset management, and financial advisory services, showcasing a diversified service offering[162]. Operational Developments - The new base in Chuzhou, Anhui, has completed its main structure, and preparations for the new base in Dongguan are ongoing[22]. - A groundbreaking ceremony for the "Industrial Automotive Grading Ceramic Capacitor Project of Dong Eyang" was held on August 5, 2022, attracting significant attention[22]. - The Group is focusing on optimizing its product mix by increasing the proportion of industrial and automotive-grade products while meeting consumer-grade customer needs[16]. - The Group's existing production bases in Anhui and Dongguan maintained stable operations during the reporting period[22]. - The Group is accelerating technology upgrades and moderate production capacity expansion to meet customer demands[22]. - The new base in Dongguan for the automotive-grade ceramic capacitor project has commenced construction, attracting significant attention[24]. Financial Position and Liquidity - As of June 30, 2022, the Group's net current assets were approximately RMB 118.1 million, a significant improvement from net current liabilities of RMB 29.1 million as of December 31, 2021[85][87]. - The current ratio increased to 1.3 as of June 30, 2022, compared to 1.0 as of December 31, 2021, primarily due to the reclassification of other loans amounting to RMB 216.9 million as non-current liabilities[86][88]. - The Group's banking facilities remained stable at RMB 568.0 million, with utilized facilities increasing to RMB 258.0 million from RMB 132.4 million[90][93]. - The gearing ratio increased to approximately 37.9% as of June 30, 2022, up from 36.0% as of December 31, 2021, due to an increase in bank and other loans[91][94]. - Cash and bank balances totaled RMB 91.0 million, an increase of RMB 28.1 million from 31 December 2021, due to cash received from the gain on deregistration of an associate[77]. Market Outlook - The electronic information industry, particularly the MLCC sector, is expected to see long-term growth driven by demand from 5G, automotive electronics, and the Internet of Things[105][106]. - Despite short-term fluctuations in the MLCC market, long-term demand from 5G, automotive electronics, and the Internet of Things is anticipated to drive industry growth[108]. - The electronic information industry is a key strategic emerging industry supported by the Chinese government, with MLCC being a major passive component in electronic devices, referred to as the "rice of the electronics industry"[108]. - By 2025, the self-sufficiency rate of core basic components and key basic materials in China is expected to reach 70% as per the "Made in China 2025" initiative[108]. Employee and Administrative Information - As of June 30, 2022, the group had a total of 1,169 employees, a slight decrease from 1,199 employees as of December 31, 2021[114]. - Administrative expenses were RMB45.6 million, representing a decrease of RMB14.1 million from the six months ended 30 June 2021, mainly due to a foreign exchange loss recorded in 2021[61]. - Staff costs, including directors' emoluments, were RMB 79,447,000 for the six months ended June 30, 2022, down from RMB 97,899,000 in the same period of 2021[192].

Financial Performance - For the year ended December 31, 2021, the Group's revenue amounted to RMB 548.5 million, representing an increase of approximately 24.2% compared to the previous year[18]. - The profit attributable to owners of the Company for the year was approximately RMB 68.8 million, compared to a loss of RMB 5.8 million in the previous year[18]. - The Group's basic earnings per share for 2021 were 9.2 cents, compared to a loss of 0.8 cents per share in 2020[7]. - The overall performance in 2021 was impacted by the COVID-19 pandemic, but the Group anticipates a recovery in global financial markets as economic activities resume[25]. - The Group's total revenue for the year ended December 31, 2021, was RMB 548.5 million, representing an increase of RMB 106.9 million, or 24.2%, compared to the previous year[81]. - The Group's net gain from financial assets at fair value through profit or loss was RMB 55.2 million for the year ended December 31, 2021, compared to RMB 35.2 million in 2020[81]. - The Group reported a net profit of I million, reflecting a J% increase from the previous year, indicating strong financial health[148]. Revenue Segmentation - The MLCC business generated revenue of RMB 444.6 million, up from RMB 352.2 million in 2020[7]. - The investment and financial services segment reported revenue of RMB 103.9 million, an increase from RMB 89.3 million in 2020[7]. - Revenue from the MLCC segment for the year ended December 31, 2021, was RMB 444.6 million, an increase of RMB 92.4 million, or 26.2%, due to market recovery and increased sales volume[81]. Profitability and Margins - The gross profit margin of the Multi-layer Ceramic Capacitors (MLCC) business increased to 25.7% from 17.5% in the previous year[18]. - The gross profit margin for the year ended December 31, 2021, was 39.8%, an increase of 5.6% from the previous year[82]. - The gross profit margin of the MLCC segment increased from 17.5% in 2020 to 25.7% in 2021, attributed to product portfolio enhancement and effective cost control[83]. Assets and Liabilities - Total assets as of December 31, 2021, were RMB 1,589.5 million, an increase from RMB 1,364.9 million in 2020[7]. - Total liabilities increased to RMB 641.1 million in 2021 from RMB 478.3 million in 2020[7]. - As of December 31, 2021, the Group's bank and other loans amounted to RMB 391.0 million, an increase from RMB 220.1 million as of December 31, 2020[127]. Production and Capacity Expansion - The Group launched the 008004 ultra-miniature MLCC product, which is the smallest size in the industry, successfully filling a gap in the micro-miniature field for Chinese manufacturers[29]. - The new production base in Chuzhou is expected to commence operations in the second half of 2022, significantly increasing the Group's MLCC production capacity[30]. - The Dongguan production base has been listed as a major project for 2022, with preparations and construction progressing smoothly[30]. - The Group is actively building new production bases in Chuzhou and Dongguan to expand existing production capacity, with the main structure of the Chuzhou base completed during the reporting period[53]. Research and Development - The Group plans to enhance its investment in the MLCC business to capitalize on opportunities presented by the Chinese government's push for new infrastructure and domestic substitution[32]. - The Group is committed to increasing investment in research and development to enhance its core competencies in both traditional and industrial-grade markets[49]. - The Group plans to increase investment in research and development, equipment, and automation to enhance product quality and optimize the product portfolio[75]. - The Group is investing G million in R&D for new technologies, aiming to launch H new products in the next 12 months[148]. Management and Governance - The Group's management team includes Mr. Zhuang Yixin and Mr. Tang Yingchun, both vice presidents responsible for product management and daily operations, respectively[163][164]. - The Board of Directors is responsible for the leadership and control of the Group, overseeing strategic decisions and overall performance[177]. - The Board has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee, to facilitate effective management and oversight[179]. - The Company has complied with all code provisions of the Corporate Governance Code for the year ended December 31, 2021, except for one provision regarding the chairman's attendance at the annual general meeting[170]. Market Conditions and Challenges - The MLCC industry experienced a high level of prosperity in the first half of 2021, but faced challenges in the second half due to chip shortages and rising costs[19]. - The competition in the MLCC industry intensified, leading to pressure on the industry's development in the latter half of the year[19]. - The global MLCC industry experienced high demand in the first half of 2021, driven by economic recovery and increased end-user demand, but faced challenges in the second half due to chip shortages and rising costs[21]. - The MLCC industry faced challenges in the second half of 2021 due to chip shortages and increased competition, impacting demand and pricing[42]. Investment Strategy - The Group's investment strategy continues to focus on passive financial investments, including equity and associate investments[68]. - The Group's asset management segment will focus on strengthening internal management and compliance while actively seeking new investment opportunities[35]. - The Group is managing 11 funds with distinct focuses, generating asset management fee income through these services[54]. - The total capital commitment from the Group reflects a strategic focus on enhancing investment in key sectors and regions[61].

Financial Performance - For the six months ended June 30, 2021, the MLCC segment recorded a year-on-year sales revenue growth of 154.8%[21] - Total revenue for the six months ended June 30, 2021, was RMB 315.1 million, an increase of RMB 168.9 million or 115.5% compared to the same period in 2020[51] - Revenue from the MLCC segment for the same period was RMB 265.0 million, representing an increase of RMB 160.9 million or 154.8% from the previous year, driven by market recovery and increased sales volume[51] - Revenue from the investment and financial services segment reached RMB 50.1 million, with net gain from financial assets at fair value through profit or loss recorded at RMB 25.6 million, up from RMB 14.5 million in the prior year[51] - The Group achieved a revenue of RMB 315,062,000 for the six months ended June 30, 2021, compared to RMB 146,171,000 in the same period of 2020, representing a significant increase[90] - Gross profit for the same period was RMB 129,224,000, up from RMB 65,953,000 year-on-year, indicating a gross margin improvement[90] - Profit from continuing operations was RMB 28,112,000, a recovery from a loss of RMB 10,265,000 in the previous year[90] - The Group's total comprehensive profit for the period was RMB 31,319,000, compared to a loss of RMB 9,524,000 in the prior year[90] Segment Performance - The investment and financial services segment maintained stable development during the reporting period[21] - The MLCC segment developed new products and achieved steady growth in the number of industrial-grade products[21] - The Group's MLCC segment technology for some products has reached international standards[21] - The Group's focus on dielectric thin medium-layer high-density capacity products is anticipated to capture a greater share of market demand[78] - The Group has successfully expanded its product applications from consumer-grade to industrial-grade and automotive-grade areas, enhancing its market position[82] Challenges and Opportunities - The Group faced challenges due to a shortage of components, including chips and screens, which constrained some terminal demands[21] - The electronics industry demand recovery provided opportunities for the Group despite the component shortages[21] - The demand for industrial-grade and automotive-grade MLCC products is expected to rise due to the rapid increase in 5G base stations and the expansion of the electric vehicle market[78] - The overall demand in the MLCC market is projected to continue expanding in the long term, despite ongoing chip shortages and fierce market competition[78] Investments and Capital Commitments - The Group's total capital commitment for the funds was approximately US$1,057.8 million as of June 30, 2021, with the Group committing approximately US$89.9 million and investing US$78.0 million[37] - The Group managed 11 funds as of June 30, 2021, each with distinct investment focuses, generating asset management fee income[29] - The Tianli Private Debt Fund L.P. had a capital commitment of US$300.0 million, with US$35.0 million directly invested by the Group[32] - The Tianli M&A Investment L.P. had a capital commitment of US$310.0 million, with no direct investment from the Group[34] - The Tianli China Opportunities Fund I L.P. had a total fund size of US$116.4 million, with the Group committing US$17.5 million[32] - Capital commitments as of June 30, 2021, were RMB 330.5 million, an increase from RMB 256.0 million as of December 31, 2020, including undrawn commitments to Tianli Private Debt Fund L.P. of approximately RMB 83.7 million[66] Operational Developments - The Group improved overall capacity and production efficiency by acquiring new equipment and enhancing automation and informatisation levels[23] - The existing production bases in Dongguan and Anhui maintained stable operations, while a new base in Chuzhou Economic Development Zone, Anhui Province, was under construction[25] - The completion of new bases in Anhui and Dongguan will enable the relocation, upgrade, and expansion of the Group's existing MLCC production bases[25] - The Group plans to accelerate the construction of new production bases in Anhui and Dongguan to support its expansion strategy[82] Financial Position - The Group's cash and bank balances totaled RMB 59.2 million, a decrease of RMB 1.1 million from December 31, 2020, with no material change since that date[63] - The Group's current ratio remained stable at 1.2 as of June 30, 2021, unchanged from December 31, 2020[68] - The Group's gearing ratio increased to approximately 30.6% as of June 30, 2021, up from 28.8% as of December 31, 2020, due to an increase in bank and other loans[68] - The Group's net current assets were approximately RMB 84.7 million, an increase from RMB 79.2 million as of December 31, 2020[68] Research and Development - Research and development costs amounted to RMB 21.9 million, reflecting an increase of RMB 1.5 million, attributed to delays in new product testing due to COVID-19[57] - The Group is committed to increasing investment in research and development, equipment, and environmental protection to enhance product quality and meet market demands[82] Compliance and Reporting - The Group's financial statements for the interim period have been prepared in accordance with International Accounting Standard (IAS) 34, ensuring compliance with applicable disclosure provisions[123] - The Group has applied new and revised International Financial Reporting Standards (IFRSs) for the first time, including amendments related to Covid-19 rent concessions and interest rate benchmark reform[123] - The interim financial report does not include all information required in annual financial statements, and should be read in conjunction with the Group's annual financial statements for the year ended 31 December 2020[122] Miscellaneous - The Group ceased its businesses in other general trading, which are classified as discontinued operations for the six months ended 30 June 2021[128] - The Group's registered office is located in the Cayman Islands, with its principal place of business in Hong Kong[121] - The Group's operations are organized into three reportable segments, with no aggregation of operating segments[127]

Financial Performance - For the year ended December 31, 2020, the Group's revenue was RMB 441.6 million, a decrease of approximately 1.0% compared to the previous year[17]. - The loss attributable to owners of the Company for the year was approximately RMB 5.8 million, representing a 95.4% decrease from the loss of the previous year[17]. - The MLCC business generated revenue of RMB 352.2 million in 2020, down from RMB 367.3 million in 2019[6]. - The financial services segment reported revenue of RMB 89.3 million, an increase from RMB 79.0 million in the previous year[6]. - The total revenue for the Group for the year ended December 31, 2020, was RMB 441.6 million, representing a decrease of RMB 4.6 million, or 1.0%, compared to the year ended December 31, 2019[84]. - Revenue from the MLCC segment for the year ended December 31, 2020, was RMB 352.2 million, a decline of RMB 15.1 million, or 4.1%, from the previous year due to weakened market conditions in the first half of 2020[84]. Profitability and Margins - The gross profit margin of the Multi-layer Ceramic Chips (MLCC) business increased significantly to 17.5%, recovering from a loss-making state last year[17]. - The gross margin for the MLCC segment improved from a loss margin of 4.0% for the year ended December 31, 2019, to a gross margin of 17.5% for the year ended December 31, 2020, due to effective cost control measures[93]. - The total gross margin for the year ended December 31, 2020, was 34.1%, an increase of 19.7% compared to the year ended December 31, 2019[93]. - Other income for the Group amounted to RMB 25.9 million for the year ended December 31, 2020, reflecting an increase of 6.8% from the previous year, primarily due to a one-off gain on the reversal of impairment loss[88]. Assets and Liabilities - Total assets as of December 31, 2020, were RMB 1,364.9 million, an increase from RMB 1,318.6 million in 2019[6]. - Total liabilities as of December 31, 2020, were RMB 478.3 million, compared to RMB 438.9 million in 2019[6]. - Total equity attributable to owners of the Company was RMB 870.7 million as of December 31, 2020, slightly up from RMB 867.9 million in 2019[6]. - The net book value of property, plant, and equipment increased to RMB 398.3 million as of December 31, 2020, up by RMB 147.8 million from December 31, 2019, due to additions in plant and machinery for MLCC production[97]. - Accounts and bills receivables amounted to RMB 185.2 million as of December 31, 2020, an increase of RMB 57.8 million or 45.3% from the previous year, driven by increased sales in the MLCC segment[100]. Production and Capacity Expansion - The Group is expanding its production capacity with new bases in Chuzhou, Anhui Province, and plans for a new production base in Fenggang Town, Dongguan City[28]. - The Group plans to expand its production capacity in the next few years, with construction of a new production base in Chuzhou, Anhui Province, having commenced on December 16, 2020[46][48]. - The Group's MLCC segment is managed by experienced professionals, including Mr. Liao Jie as general manager, focusing on strategic planning and development[154]. Corporate Governance - The Company complied with all provisions of the Corporate Governance Code for the year ended December 31, 2020, except for code provision E.1.2 regarding the chairman's attendance at the annual general meeting[162]. - The Board of Directors consists of four executive Directors and three independent non-executive Directors, ensuring effective management and clear communication of business objectives[178]. - The Company emphasizes high standards of corporate governance to enhance long-term shareholder benefits and strengthen performance[161]. - The Group's corporate governance practices are continuously reviewed and enhanced to align with best practices[163]. Challenges and Market Conditions - The COVID-19 pandemic posed significant challenges to the global economy and the Group's operations, but management is committed to overcoming these difficulties[40]. - The MLCC market showed significant recovery in the second half of 2020, driven by the popularity of 5G technology and increased domestic substitution demand[19]. - The domestic electronics industry showed signs of recovery in the second half of 2020, driven by the popularization of 5G technology and the growth of electric vehicles[41][43]. Investments and Financial Services - The Group is managing 11 funds with distinct focuses, generating asset management fee income from these services[51]. - The total capital commitment from the Group to various funds includes significant investments in private debt instruments and project funds[53]. - As of December 31, 2020, the total capital commitment of the funds was approximately US$1,057.8 million, with the Group committing approximately US$89.9 million and investing US$78.0 million[61]. - The six funds contributed a net gain of RMB35.2 million to the Group's financial results, in addition to asset management fee income of RMB54.0 million[61]. Employee and Management - The Group employed a total of 1,255 employees as of December 31, 2020, an increase from 994 in 2019[130]. - The Group's senior management is delegated authority for day-to-day operations, allowing the Board to focus on strategic decisions and overall performance[171].

Sales and Revenue Performance - Total revenue for the Group was RMB146.2 million, representing a drop of RMB114.7 million, or 44.0%, compared to the same period in 2019[49]. - Revenue from the MLCC segment was RMB104.0 million, a decrease of RMB104.0 million, or 50%, from the same period in 2019 due to weakening market conditions[50]. - Revenue from the investment and financial services segment reached RMB42.2 million, a decrease of RMB10.7 million, or 20.2%, from the same period in 2019[51]. - Revenue for the six months ended June 30, 2020, was RMB 146,171, a decrease of 44% compared to RMB 260,933 for the same period in 2019[116]. - Revenue from the sale of MLCC decreased to RMB 103,974,000 for the six months ended June 30, 2020, down 50.1% from RMB 208,058,000 in the same period of 2019[187]. - Total revenue from contracts with customers was RMB 131,268,000, a decline of 44.7% compared to RMB 236,889,000 in the prior year[187]. Profitability and Margins - The gross profit margin for the MLCC segment improved significantly from a gross loss of 4.9% in the first half of 2019 to a gross profit of 22.8% in the first half of 2020[18]. - Aggregate gross profit margin for the six months ended 30 June 2020 was 45.1%, an increase of 28.7% from the same period in 2019[52]. - The gross profit margin of the MLCC segment increased from a gross loss margin of 4.9% in the first half of 2019 to a gross profit margin of 22.8% for the same period in 2020[52]. - Gross profit for the same period was RMB 65,953, representing an increase of 54% from RMB 42,705 in 2019[116]. - The Group reported a consolidated loss before taxation of RMB (9,072,000) for the six months ended June 30, 2020, compared to a loss of RMB (53,010,000) in the same period of 2019[199]. Operational Developments - The Group focused on improving product quality and optimizing product structure, which contributed to a higher industry reputation and increased average selling prices[13]. - Despite the pandemic, production at the Dongguan and Anhui plants resumed promptly, and the Group acquired new equipment to enhance production capacity and automation[18]. - The Group is in the process of establishing its third production base in Chuzhou Economic Development Zone, with land acquisition completed in the first half of the year and various assessments finished[19]. - The Group has agreed to establish a fourth production base in Fenggang Town, Dongguan City, to further expand production capacity and improve technology levels[19]. - New equipment and technology improvements at the existing factories are aimed at increasing production capacity and automation levels[20]. Financial Position and Investments - As of June 30, 2020, the total capital commitment of the managed funds was approximately US$1,057.8 million, with the Group committing approximately US$89.9 million[35]. - The Group invested US$78 million in the funds, which contributed a net gain of RMB14.5 million to the Group's financial results during the first six months of 2020[35]. - The Group is managing 11 funds, each with distinct investment focuses, and directly invests in six of them[24]. - The Group's investment strategy includes a focus on private equity, public markets, and mergers and acquisitions[30]. - The Group's net current assets were approximately RMB 55.0 million as of June 30, 2020, down from RMB 107.0 million as of December 31, 2019[94]. Employee and Operational Efficiency - The Group had a total of 1,189 employees as of June 30, 2020, an increase from 994 employees as of December 31, 2019[109]. - The Group's staff costs for the current period were RMB 20,347,000, down 52.0% from RMB 42,341,000 in the same period of 2019[200]. - Total administrative expenses were RMB53.9 million, an increase of RMB13.7 million or 34.2% from the same period in 2019, mainly due to higher employee remuneration[64]. Market and Economic Impact - The COVID-19 pandemic led to a drop in supply from major MLCC manufacturers, which pushed market prices up[13]. - The overall impact of the pandemic varied across sectors, with mobile phones and security being more affected than personal computers and Netcom[13]. - The Group's management is committed to cost control and has successfully maintained stable production during challenging conditions[18]. - A conservative approach is adopted in the general trading segment to avoid potential losses in trading activities[112]. Future Outlook - The management expects long-term demand in the MLCC market to continue expanding, particularly in new application fields such as 5G technology and electric vehicles[103]. - Plans are underway to establish a research and development base for automotive specifications and industrial-grade products in Longgang District, Shenzhen[106]. - The Group will enhance post-investment monitoring and management of existing projects to mitigate potential risks in its investment and financial services segment[107].

Financial Performance - For the year ended December 31, 2019, the Group recorded annual revenue of RMB 446.2 million, representing a decrease of approximately 57.3% compared to the previous year[12] - The Multi-layer Ceramic Chips (MLCC) business reported a significant decline in both revenue and gross profit, contributing to the overall revenue drop[12] - The loss for the year attributable to owners of the Company amounted to approximately RMB 126.0 million, indicating a shift from profit to loss compared to the previous year[12] - Total assets decreased to RMB 1,318.6 million in 2019 from RMB 1,795.9 million in 2018, reflecting a decline of approximately 26.5%[4] - Total liabilities were reported at RMB 438.9 million in 2019, down from RMB 802.5 million in 2018, a decrease of approximately 45.4%[4] - Total equity attributable to owners of the Company was RMB 867.9 million in 2019, compared to RMB 987.0 million in 2018, a decline of approximately 12.1%[4] - Basic loss per share for the year was reported at (16.9) cents, compared to a profit of 21.4 cents per share in the previous year[4] - The overall gross profit for the year was RMB 64.3 million, a substantial decrease from RMB 460.7 million in the previous year[4] - Aggregate gross profit margin for the year was 14.4%, representing a drop of 29.7% compared to the previous year[74] - The gross profit margin of the MLCC segment decreased from 54.1% to a gross loss margin of 4.0% due to high fixed costs and pressure on sales[74] MLCC Business Insights - The MLCC market has experienced significant fluctuations since mid-2017, with a notable recovery towards the end of 2019 and early 2020, which was interrupted by the COVID-19 outbreak[14] - Despite short-term challenges, the long-term outlook for the MLCC industry remains positive, driven by robust demand for electronic information materials and the impact of commercial 5G technologies[15] - The Group's MLCC business strategy focuses on miniaturization and small case sizes, leading to recognition among customers and exceeding domestic peers in key technical indicators[22] - The Group plans to enhance its MLCC business by increasing investments in talent, technology, and equipment, and has signed an agreement to establish a new production base in Chuzhou Economic Development Zone, which is expected to significantly increase production capacity[25] - In 2019, the MLCC segment faced unprecedented threats and a decrease in revenue due to a decline in average unit prices and reduced orders from customers[35] - The MLCC segment reported a decrease in revenue for 2019, influenced by the release of excess inventory and new production capacity from competitors[37] - The average price of MLCC products saw a significant decline due to increased supply and reduced demand[37] - The management expects a continuous expansion in the overall demand for MLCC products in the long run, driven by new applications in 5G technology, IoT, and electric vehicles[68] - The Group plans to focus resources on expanding and strengthening the MLCC segment, promoting production capacity expansion, and enhancing contributions to research and development[68] Investment and Financial Services - The Group's investment and financial services segment generated revenue of RMB 78.9 million, a significant recovery from a loss of RMB 159.0 million in 2018[4] - Revenue from the investment and financial services segment reached RMB 79.0 million, with total revenue from this segment recording RMB 20.3 million compared to a loss of RMB 215.1 million in the previous year[74] - The Group's investments in six funds contributed a net gain of RMB19.4 million to the financial results for the year ended December 31, 2019, alongside asset management fee income of RMB58.6 million[53] - The Group manages 11 funds, each with distinct investment focuses, generating asset management fee income[43] - The fair value of the Group's equity investment was increased to RMB 11.4 million at the end of 2019 due to better-than-expected business returns, with approximately RMB 8.8 million used for share buybacks during the year[60] - The Group's total investment amount across various funds was $771.8 million, with $372.9 million in debt, $338.6 million in common equity, and $60.3 million in preferred equity[56] Operational Challenges and Management Strategies - The Group's financial performance indicates a need for strategic reassessment and potential market expansion to recover from the significant revenue decline[12] - The Group's financial performance is sensitive to macroeconomic trends, with the COVID-19 pandemic and crude oil price plunge causing significant turbulence in global financial markets[20] - The Group's management is committed to stabilizing operations and executing strategies while strengthening internal controls following challenges faced in 2019[29] - The general trading segment was significantly affected by the uncertain global economic environment, leading to a temporary suspension of trading activities in 2019[62] - The Group anticipates that global financial markets will recover as the pandemic is brought under control and economic activities resume[20] Corporate Governance and Board Structure - The Company complied with all provisions of the Corporate Governance Code during the year ended December 31, 2019[117] - The Board is responsible for overseeing the management of the Group's businesses and ensuring long-term shareholder value[119] - The Company has received annual confirmations of independence from all independent non-executive directors, affirming their compliance with relevant guidelines[125] - The Board monitors the financial performance and internal controls of the Group's operations[119] - The Nomination Committee has assessed the independence of all independent non-executive directors, confirming their independent status[126] - The Company emphasizes effective management and sound control to maximize shareholder value[116] - The Board delegates certain functions to committees, including the Audit Committee, Nomination Committee, and Remuneration Committee[119] - The Company has a diverse Board composition with no financial or material relationships among directors[125] - The Board is charged with promoting the success of the Group through responsible and effective supervision[119] - The Board adopted a nomination policy in December 2018 to guide the selection of candidates for the Board, focusing on a balance of skills, experience, and diversity[130] Director Appointments and Experience - Mr. Zhou Bangyi appointed as Chief Risk Officer in April 2019, holding a PhD from Cornell University and over 10 years of experience in corporate legal and compliance services[99] - Ms. Du Weilin appointed as Executive Director in November 2019, with extensive experience in international trading and corporate management[102] - Mr. Chu Kin Wang has been an independent non-executive director since April 2007, serving as chairman of the Audit and Nomination Committees[103] - Mr. David Tsoi, appointed in August 2017, is a certified public accountant with extensive experience in corporate finance and audit[110] - Mr. Xu Xuechuan joined as an independent non-executive director in July 2015, holding degrees in economics and marketing research[111] - The company has a diverse board with members holding qualifications from various prestigious institutions, enhancing its governance structure[106] - The board includes members with significant experience in corporate finance, audit, and taxation, contributing to strategic decision-making[105] - The company is focused on expanding its market presence through strategic appointments and leveraging the expertise of its directors[108] - The independent non-executive directors bring a wealth of experience from various sectors, which is crucial for the company's growth strategy[109] Financial Position and Capital Management - As of December 31, 2019, the net book value of the Group's property, plant, and equipment was RMB250.5 million, an increase of RMB97.7 million from December 31, 2018, primarily due to machinery and equipment upgrades of RMB48.6 million[78] - The Group's financial assets at fair value through profit or loss amounted to RMB383.3 million as of December 31, 2019, reflecting a 4.1% increase from the previous year, mainly due to a fair value gain of RMB19.3 million[78] - Accounts and bills receivables decreased to RMB127.5 million as of December 31, 2019, down by RMB149.9 million or 54.0% from the previous year, attributed to reduced transactions in the MLCC segment[78] - Cash and bank balances and pledged bank deposits totaled RMB175.3 million as of December 31, 2019, a decrease of RMB326.4 million from December 31, 2018, mainly due to settlement of borrowings and acquisition of new machinery[80] - Trade and bills payables amounted to RMB44.6 million as of December 31, 2019, a decrease of RMB100.4 million from the previous year, primarily due to reduced MLCC production volumes[80] - Total deferred income, accruals, and other payables were RMB77.3 million as of December 31, 2019, a decrease of RMB64.6 million from the previous year, mainly due to increased settlement of salary payables[80] - The Group's bank and other loans were RMB200.7 million as of December 31, 2019, due to an independent third party[80] - The Group settled all outstanding bond payables during the year ended December 31, 2019[80] - As of December 31, 2019, the Group had no material contingent liabilities[80] - Capital commitments amounted to RMB180.0 million as of December 31, 2019, including a commitment of approximately RMB77.7 million for the Tianli Private Debt Fund and RMB102.5 million for production equipment additions[80] - As of December 31, 2019, the Group had net current assets of approximately RMB 107.0 million, a decrease from RMB 395.3 million in 2018, with a current ratio of 1.3 compared to 1.5 in 2018[82] - The Group's gearing ratio improved to approximately 17.6% as of December 31, 2019, from 15.8% in 2018, attributed to the repayment of bank and other loans[82] - The Group had no banking facilities as of December 31, 2019, indicating a lack of external financing reliance[82] - The management believes the Group has sufficient financial reserves to meet ongoing operational requirements due to liquid assets and credit facilities[85] Risk Management and Compliance - The company emphasizes compliance and risk management, as evidenced by the appointment of experienced professionals in these areas[104] - The Audit Committee reviewed the effectiveness of the risk management and internal control systems based on internal audit findings and recommended actions to the Board when appropriate[180] - The Audit Committee monitored the integrity of the Company's financial statements, annual report, and half-year report[179] - The Company confirmed that all Directors complied with the standards for securities trading throughout the year ended December 31, 2019[174] - The company secretary ensures compliance with all applicable rules and regulations during board meetings, with timely distribution of meeting agendas and papers[139] - The company secretary provides unrestricted access to advice and services for all directors[140] - The company maintains proper records of all board meeting minutes for director inspection[139]

MLCC Segment Performance - The MLCC segment is expected to continue as the Group's major source of growth despite facing unprecedented threats and challenges in 2019[13]. - Revenue from the MLCC segment decreased in the first half of 2019 due to a market-wide sell-off and reduced customer orders, with expectations of a sustained downturn[14]. - Revenue from the MLCC segment in the first half of 2019 was RMB208.1 million, a decrease of RMB357.2 million, or 63.2%, from the same period in 2018 due to weakening market conditions[45]. - The management expects long-term growth in the MLCC market driven by new applications in 5G technology, IoT, and electric vehicles, despite current challenges in pricing and gross profit margins[92][93]. - The Group is increasing its investment in research and development and equipment to support the expansion of small and miniature MLCC products[92][93]. Financial Services and Investment - The investment and financial services segment remained stable during the six months ended June 30, 2019, while the general trading segment was temporarily halted[13]. - Revenue from the investment and financial services segment reached RMB52.9 million, an increase of RMB31.9 million, or 152.4%, from the same period in 2018[45]. - During the first half of 2019, the six funds contributed a net gain of RMB24.0 million to the Group's financial results, in addition to asset management fee income of RMB28.8 million[29]. - The Group manages 11 funds, each with distinct investment focuses, including private equity, debt securities, and global mergers and acquisitions[29]. - The Group plans to enhance post-investment monitoring and management of existing projects in its fund operation to mitigate potential risks[97][101]. Economic and Market Conditions - The global macroeconomic environment faced strong headwinds due to the US-China trade war, impacting the domestic consumer market in China[14]. - The Group has temporarily suspended trading activities in its other general trading segment due to uncertainties in the global economic environment[40]. - The Group maintains a conservative view on its general trading segment, aiming to avoid potential losses in trading activities[98][102]. Revenue and Profitability - Total revenue for the Group was RMB260.9 million, representing a drop of RMB384.7 million, or 59.6%, compared to the same period in 2018[45]. - Gross profit for the same period was RMB42,705, down 87.6% from RMB345,374 in 2018[108]. - The company reported a loss for the period of RMB48,488, compared to a profit of RMB189,567 in the previous year[108]. - Total comprehensive loss for the period was RMB47,883, significantly lower than the comprehensive income of RMB193,290 in 2018[112]. - Basic and diluted loss per share was RMB (6.66), compared to earnings per share of RMB 25.49 in 2018[112]. Costs and Expenses - Research and development costs amounted to RMB42.3 million in the first half of 2019, representing an increase of RMB15.0 million, or 55.0%, from the same period in 2018[52]. - Selling and distribution costs were RMB9.2 million, a decrease of RMB4.8 million, or 34.1%, from the same period in 2018, mainly due to reduced sales in the MLCC segment[50]. - Total administrative expenses were RMB40.2 million, a decrease of RMB11.2 million, or 21.7%, from the same period in 2018, primarily due to a drop in employee remuneration[51]. - Finance costs amounted to RMB15.4 million, an increase of RMB0.9 million, or 6.2%, from the same period in 2018[59]. Assets and Liabilities - As of June 30, 2019, the net book value of property, plant, and equipment was RMB 287.4 million, an increase of RMB 134.6 million or 88.0% from RMB 152.9 million as of December 31, 2018[61]. - The Group's financial assets at fair value through profit or loss (FVPL) amounted to RMB 586.9 million, with the non-current portion at RMB 386.9 million (up 5.1% from RMB 368.1 million) and the current portion at RMB 200.0 million (up 80.9% from RMB 110.5 million) as of June 30, 2019[61]. - Total current liabilities were RMB 557,962, down from RMB 738,454 at the end of 2018, reflecting improved management of short-term obligations[120]. - Total non-current liabilities increased to RMB 88,158,000 as of June 30, 2019, compared to RMB 64,088,000 as of December 31, 2018, representing a 37.5% increase[123]. Cash Flow and Liquidity - Cash and bank balances decreased to RMB 202.7 million, down RMB 298.9 million from RMB 501.6 million as of December 31, 2018, mainly used for acquiring new machinery and wealth management products[67]. - The Group reported a net decrease in cash and cash equivalents of RMB 289,924,000 for the six months ended June 30, 2019, compared to a decrease of RMB 453,101,000 in the same period of 2018[133]. - The Group's net cash used in investing activities was RMB (240,995,000) for the six months ended June 30, 2019, compared to RMB (46,161,000) in 2018, indicating increased investment outflows[133]. Adoption of IFRS 16 - The Group has adopted IFRS 16 from January 1, 2019, which may impact future financial reporting[113]. - The cumulative effect of the initial application of IFRS 16 has been recognized as an adjustment to the opening balance of equity[150]. - The Group's finance costs for the period were RMB 1,555,000, compared to RMB 14,466,000 in 2018[200]. - The estimated impact of adopting IFRS 16 included an increase in depreciation and interest expense, which was not previously recognized under IAS 17[200]. - The Group's cash flows presentation changed significantly due to the adoption of IFRS 16, affecting the classification of rental payments[200].