Financial Performance - For the year ended December 31, 2023, the Group's total revenue was RMB 488.0 million, an increase of RMB 126.6 million compared to the previous year[16]. - The loss attributable to owners of the Company for the year was approximately RMB 222.1 million, compared to a loss of RMB 63.9 million in the previous year[16]. - The gross profit margin for the year ended December 31, 2023, was 16.0%, an increase of 11.6 percentage points compared to 2022[71]. - The gross profit margin of the MLCC segment increased from 3.1% in 2022 to 7.1% in 2023 due to improved production mix and cost control measures[75]. - The Group's asset management fee income was RMB 49.7 million for 2023, an increase of RMB 11.2 million or 29.2% compared to 2022[70]. - Other income amounted to RMB 17.9 million for 2023, representing an increase of 29.1% from 2022, mainly due to government grants and increased rental income[77]. - Finance costs increased to RMB 34.2 million for 2023, up by RMB 9.8 million from 2022, primarily due to additional bank and other loans[87]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 2,013.8 million, up from RMB 1,816.7 million in 2022[4]. - Total liabilities increased to RMB 1,345.8 million in 2023 from RMB 926.5 million in 2022[4]. - The total equity attributable to owners of the Company decreased to RMB 668.0 million in 2023 from RMB 886.6 million in 2022[4]. - As of December 31, 2023, accounts and bills receivables amounted to RMB 347.2 million, an increase of RMB 85.6 million from 2022, driven by higher revenue[91]. - As of December 31, 2023, the Group's cash and bank balances totaled RMB 46.9 million, a decrease of RMB 15.6 million from December 31, 2022, mainly due to increased machinery purchases during 2023[99]. - As of December 31, 2023, trade and bills payables amounted to RMB 116.0 million, an increase of RMB 55.3 million from December 31, 2022, primarily due to increased MLCC production[100]. - As of December 31, 2023, the Group's bank and other loans amounted to RMB 715.8 million, an increase of RMB 295.7 million from RMB 420.1 million as of December 31, 2022, mainly due to additional drawdowns[102]. Market and Industry Outlook - The Group anticipates a low-speed growth cycle for the global MLCC market due to weakened order demand and ongoing price competition among suppliers[17]. - Long-term growth opportunities in the MLCC market are expected to arise from advancements in artificial intelligence and the increasing demand for high-end MLCC products[18]. - The MLCC market is expected to experience slow but steady growth driven by advancements in AI technology and increased demand for high-performance electronic products[21]. - The Group plans to enhance core competitiveness through increased investment in research and development, new materials, and new processes[64][66]. - The Group's investments were made in six countries or regions, including Australia, Hong Kong, Korea, PRC, UK, and the US[60][62]. Production and Capacity - The Group is closely monitoring and controlling production capacity in response to market conditions[17]. - The destocking process in the electronics technology industry is nearing completion, which may lead to a mild recovery in the MLCC industry[18]. - The Group has established new production bases in Chuzhou and Dongguan to relocate existing production capacity and moderately expand production capacity[28]. - The new plant in Chuzhou has been operational since January 2023, while the Dongguan plant is expected to commence operations in the second quarter of 2024[28]. - The Group has completed the construction of new production bases in Chuzhou and Dongguan, enhancing capacity for high-end products to meet growing demand in industrial and automotive markets[42]. Research and Development - The Group continues to increase investment in research and development, particularly in industrial and automotive grade products[24]. - The Group is focusing on R&D in ultra-micro, high capacitance, high temperature, and high reliability products to enhance competitiveness in the high-end market[41]. - The Group has achieved technological breakthroughs in miniature and high-capacitance MLCC products, consolidating its leading position in the PRC[64][66]. - Research and development costs were RMB 65.3 million for 2023, an increase of RMB 9.0 million from 2022, reflecting ongoing efforts in new product and technology development[80]. Corporate Governance and Management - The Group emphasizes high standards of corporate governance and has complied with all applicable code provisions of the Corporate Governance Code throughout the year ended December 31, 2023[165]. - The Board of Directors is responsible for the leadership and control of the Company, focusing on overall strategies and financial performance[176]. - The Board has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee, delegating various responsibilities to them[179]. - The Company has a culture of integrity and commitment, ensuring that all staff act lawfully and ethically[168]. - The roles of the Chairman and CEO are separate, ensuring a clear division of responsibilities[187][191].

Financial Performance - Total revenue for 2023 was RMB 488.0 million, an increase of 35.0% compared to 2022[4] - Gross profit for 2023 was RMB 77.9 million, up RMB 62.1 million or 394.4% from 2022[4] - The loss attributable to owners of the company for 2023 was RMB 222.1 million, compared to a loss of RMB 63.9 million in 2022[4] - Basic and diluted loss per share was RMB 29.8 cents for 2023[4] - The group reported a net loss of RMB 223,516,000 for the year ending December 31, 2023[18] - The company reported a pre-tax consolidated loss of RMB 195,256 thousand for the year ended December 31, 2023, compared to a loss of RMB 67,975 thousand in 2022[29] - The company reported a pre-tax loss of RMB 222,148,000 for 2023, compared to a loss of RMB 63,851,000 in 2022, indicating a significant increase in losses year-over-year[54] Revenue Breakdown - MLCC sales contributed RMB 441,495 thousand in 2023, up from RMB 356,609 thousand in 2022, representing a growth of 24%[35] - The investment and financial services segment generated revenue of RMB 46,521 thousand in 2023, compared to RMB 4,768 thousand in 2022, marking a significant increase[35] - Revenue from the MLCC segment was RMB 441.5 million, up RMB 84.9 million or 23.8% year-over-year, attributed to improved production mix[91][94] - The company’s revenue from external customers in mainland China was RMB 416,026 thousand in 2023, an increase from RMB 322,777 thousand in 2022[31] Cost and Expenses - The company reported a significant increase in research and development costs, totaling RMB 65.3 million in 2023 compared to RMB 56.3 million in 2022[6] - Research and development expenses increased to RMB 65,331,000 in 2023 from RMB 56,307,000 in 2022, representing a growth of about 16.4%[47] - Total employee costs for 2023 amounted to RMB 152,878,000, slightly down from RMB 154,676,000 in 2022, reflecting a decrease of approximately 1.2%[45] - The company recorded a depreciation and amortization expense of RMB 72,749 thousand in 2023, slightly down from RMB 73,571 thousand in 2022[28] - Financing costs rose to RMB 34.2 million, an increase of RMB 9.8 million, due to additional bank and other loans[100] Assets and Liabilities - Total assets decreased from RMB 1,816.7 million in 2022 to RMB 1,013.8 million in 2023[12] - Current liabilities increased from RMB 614.8 million in 2022 to RMB 963.6 million in 2023[12] - The company’s net asset value decreased from RMB 890.2 million in 2022 to RMB 668.0 million in 2023[12] - The company’s liabilities totaled RMB 1,345,827 thousand as of December 31, 2023, compared to RMB 926,454 thousand in 2022, indicating a rise in financial obligations[29] - The total accounts payable increased to RMB 116,045 thousand in 2023 from RMB 60,769 thousand in 2022, with trade payables rising to RMB 110,138 thousand from RMB 59,439 thousand[64] Cash Flow and Financing - Cash and cash equivalents as of December 31, 2023, amounted to RMB 32,671,000[18] - The company is actively negotiating loan terms with banks following the failure to meet certain financial covenants[20] - Plans to improve liquidity include restructuring cash borrowings and enhancing financial ratios through capital injections[22] - The company has implemented measures to expedite the collection of receivables and explore other debt or equity financing arrangements[22] - The group secured new bank credit facilities totaling RMB 7,880 million as of December 31, 2023, with RMB 6,436 million already utilized[120] Market and Operational Insights - The company has invested in R&D and technology collaboration, focusing on high-end markets with new product developments including niche products for specialized circuit applications[75] - The new production base in Chuzhou has commenced operations, with the Dongguan facility expected to start production in Q2 2024, enhancing production capacity and technical capabilities[75] - The company is expanding its market presence and enhancing competitiveness in the MLCC industry, anticipating long-term growth despite current market challenges[75] - The second half of 2023 saw a 27.3% increase in sales revenue compared to the first half, and a 41.9% increase compared to the second half of 2022[73] Governance and Compliance - The company adhered to all corporate governance codes and reporting requirements as stipulated by the Hong Kong Stock Exchange for the year ended December 31, 2023[130] - The audit committee, composed of three independent non-executive directors, reviewed the consolidated financial statements for the year ended December 31, 2023, ensuring oversight of the financial reporting process and risk management[133] Dividend and Shareholder Information - The company did not recommend the payment of a final dividend for the year ended December 31, 2023[4] - The board of directors did not recommend the declaration of a final dividend for the year ended December 31, 2023, consistent with the previous year[127]

Share Incentive Plan - As of December 31, 2022, a total of 5,958,000 shares have been granted under the share incentive plan[4] - The number of shares available for grant under the share incentive plan as of December 31, 2022, is 68,517,000 shares[4] - The total number of shares that can be issued under the share incentive plan as of December 31, 2022, is 74,475,000 shares, representing 10% of the company's issued share capital[5] - As of June 30, 2023, the total number of shares granted under the share incentive plan remains at 5,958,000 shares[6] - The number of shares available for grant under the share incentive plan as of June 30, 2023, is still 68,517,000 shares[6] - The total number of shares that can be issued under the share incentive plan as of June 30, 2023, is 74,475,000 shares, also representing 10% of the company's issued share capital[6] - The company has not specified a maximum entitlement for eligible participants under the share incentive plan[4][6] - The shares granted can be satisfied either from existing shares in the market or by issuing new shares authorized by shareholders[4][6] Board of Directors - The board of directors includes two executive directors and three independent non-executive directors as of the announcement date[8] Reporting Consistency - The company maintains that all other information in the 2022 annual report and 2023 interim report remains unchanged[7]

Financial Performance - The Group's total revenue for the six months ended June 30, 2023, was RMB 212.6 million, an increase of RMB 18.3 million, or 9.4%, compared to the same period in 2022[38]. - Revenue from the MLCC segment was RMB 194.3 million, representing an increase of RMB 11.9 million, or 6.5%, due to increased sales volume in the first half of 2023[38]. - The aggregate gross profit margin for the six months ended June 30, 2023, was 8.2%, an increase of 1.9 percentage points compared to the same period in 2022[39]. - The Group recorded a net loss of RMB 1.9 million from financial assets at fair value through profit or loss (FVPL) for the six months ended June 30, 2023, compared to a net loss of RMB 6.2 million for the same period in 2022[38]. - The Company reported a loss per share of RMB (9.36) for the period, compared to RMB (6.38) in the previous year, highlighting the impact of increased losses on shareholders[152]. - Total comprehensive loss for the period was RMB 64,229,000, compared to a loss of RMB 28,857,000 in the same period last year[152]. - Consolidated loss before taxation was RMB (68,343) thousand for the first half of 2023, compared to RMB (47,188) thousand in the same period of 2022, indicating a 44.8% increase in loss[192]. Market and Product Development - In the first half of 2023, the MLCC segment achieved a year-on-year sales volume increase of over 28%, with sales revenue reaching RMB 194.2 million, a 6.5% increase compared to the first half of 2022[14]. - The average product price in the MLCC segment declined by approximately 17% due to intense price competition from increased supply by domestic competitors[14]. - The Group has made significant breakthroughs in the research and development of industrial and automotive-grade products, expanding its product offerings to include specialized circuit applications[18]. - The Group's product range now covers consumer-grade, automotive-grade, and industrial-grade sectors, with a focus on larger sizes and higher specifications[18]. - The MLCC market is expected to see continued growth driven by demands in 5G communications, automotive electronics, and the Internet of Things[103]. - The Group has achieved technological breakthroughs in miniature and high-capacitance MLCC products, expanding its portfolio to include medium- and large-sized products with high-capacitance and high-temperature characteristics[103]. Production and Infrastructure - The production base in Chuzhou has been completed and is now operational, while the Dongguan base is expected to be ready for mass production by December 2023[19]. - The Group is accelerating the construction of new production bases and upgrading infrastructure to enhance capacity for high-end products[19]. - The relocation of major production equipment at the Dongguan base has been completed, enhancing the Group's production capacity and technological capability[19]. - The new production base in Chuzhou has commenced operations, and the new base in Dongguan is expected to achieve mass production by December 2023[21]. Financial Position and Investments - As of June 30, 2023, the total capital commitment of the Group's funds was approximately US$647.8 million, with the Group committing approximately US$89.9 million[30]. - The Group has invested US$75.5 million in the funds it manages[30]. - The Group's cash and bank balances totaled RMB 108.0 million, an increase of RMB 45.5 million compared to December 31, 2022, primarily due to additional bank loans drawn[75]. - The Group's bank and other loans increased to RMB 924.8 million as of June 30, 2023, up from RMB 696.7 million on December 31, 2022, indicating a reliance on external financing[78]. - The Group maintained sufficient financial reserves to meet ongoing operational requirements, supported by liquid assets and credit facilities[91]. Corporate Governance and Shareholder Information - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2023, consistent with the previous year[116]. - The company continues to comply with the corporate governance code as per the Hong Kong Stock Exchange listing rules[118]. - The company has adopted all applicable provisions of the corporate governance code as of June 30, 2023[118]. - The interests in unvested shares granted under the Share Award Scheme were noted, but specific details were not disclosed[123]. - The company has a share award scheme aimed at encouraging and retaining employees while aligning their interests with shareholders[135]. Research and Development - Despite ongoing market sluggishness, the Group continues to increase investment in research and development to enhance competitiveness in high-end markets[18]. - Research and development costs increased by RMB 1.7 million to RMB 31.4 million, reflecting ongoing efforts in new product and technology development[49]. - The Group's strategy includes continuous investment in research and development, equipment, and automation to enhance core competitiveness[103].

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]