Financial Performance - Revenue for the six months ended June 30, 2024, reached RMB 1,841,000, representing a 50.1% increase compared to RMB 1,226,859 for the same period in 2023[1] - Gross profit decreased to RMB 69,605, down 19.8% from RMB 86,774 in the previous year[1] - The company reported a profit of RMB 6,974 for the period, a significant recovery from a loss of RMB 7,418 in the same period last year[2] - Basic earnings per share for the period was RMB 0.33, compared to a loss of RMB 0.35 per share in the previous year[3] - The total comprehensive income for the period was RMB 5,748, compared to a loss of RMB 16,771 in the same period last year[4] - The company reported a profit attributable to owners of the parent of RMB 6,974,000 for the six months ended June 30, 2024, compared to a loss of RMB 7,418,000 for the same period in 2023[24] - The company achieved a profit attributable to owners of RMB 7.0 million, compared to a loss of RMB 7.4 million in the same period last year[34] Revenue Breakdown - Revenue for the six months ended June 30, 2024, reached RMB 1,841 million, a significant increase of 50% compared to RMB 1,227 million for the same period in 2023[11] - Sales in mainland China accounted for RMB 1,629 million, up from RMB 197 million in the previous year, representing a growth of 726%[11] - Other countries/regions generated revenue of RMB 212 million, a decrease of 79% from RMB 1,030 million in the same period last year[11] - Revenue from mainland China and Hong Kong accounted for 88.5% and 11.5% of total revenue, respectively[35] Expenses and Costs - The company reported other income and gains of RMB 32,035, down from RMB 36,076 in the previous year[2] - The company’s total sales cost for the six months ended June 30, 2024, was RMB 1,771 million, compared to RMB 1,140 million in the same period of 2023[17] - Research and development expenses for the period were RMB 64,236 million, reflecting an increase from RMB 52,136 million in the previous year[17] - The total employee cost during the review period was approximately RMB 184 million, with a workforce of 2,322 employees[45] Assets and Liabilities - Non-current assets totaled RMB 1,033,385 as of June 30, 2024, an increase from RMB 812,500 at the end of 2023[5] - Current liabilities rose to RMB 1,219,933, up from RMB 1,049,888 at the end of 2023[6] - The company’s net assets stood at RMB 1,015,196, slightly up from RMB 1,009,448 at the end of 2023[6] - Trade receivables increased to RMB 660,465 from RMB 542,417 in the previous year[5] - The company reported trade payables of RMB 1,219,933,000 as of June 30, 2024, compared to RMB 1,049,888,000 as of December 31, 2023, indicating an increase of about 16.2%[26] - The company has bank financing facilities amounting to RMB 1,770,000,000 as of June 30, 2024, slightly up from RMB 1,760,000,000 as of December 31, 2023[28] - The company reported no interest-bearing bank borrowings as of June 30, 2024, compared to RMB 3,161,000 as of December 31, 2023[29] - The company had no interest-bearing bank loans or other borrowings as of June 30, 2024, maintaining a capital debt ratio of 0%[38] Market Performance - The domestic smartphone market saw shipments reach 139 million units in the first half of 2024, reflecting an 11.6% year-on-year increase, outperforming the global market[31] - Global smartphone shipments grew by 6.5% year-on-year in Q2 2024, reaching 285.4 million units, marking the fourth consecutive quarter of growth[31] Future Outlook and Strategy - The company plans to expand its product categories and leverage opportunities from 5G, IoT, and AI technologies[37] - The company aims to enhance its competitiveness through improved technology and economies of scale while continuing to deepen cooperation with TCL Huaxing[37] - The company has no specific plans for significant investments or capital assets for the second half of 2024[44] Dividends and Share Capital - The company did not recommend any dividend payment for the six months ending June 30, 2024, consistent with the previous period[8] - The company’s issued share capital remained unchanged at 2,114,307,929 shares as of June 30, 2024[30] - The company did not declare any interim dividends for the six months ended June 30, 2024[46] Compliance and Governance - The audit committee reviewed the unaudited interim condensed consolidated financial statements for the six months ended June 30, 2024, ensuring compliance with applicable accounting standards[50] - There were no significant contingent liabilities or major investments held by the company as of June 30, 2024[42][44] - No major acquisitions or disposals of subsidiaries, associates, or joint ventures occurred during the review period[43] - The company has not engaged in any high-risk derivative transactions during the review period to manage foreign exchange risks[41]

Investment Rating - The report does not provide a specific investment rating for the company [2][8]. Core Insights - The company, Huaxian Optoelectronics (00334.HK), experienced a rebound in sales driven by the recovery in demand for mobile TFT LCD modules, with both sales and processing businesses recording positive growth in Q3 and Q4 of 2023 [39]. - In 2023, the company achieved a total revenue of 2.58 billion RMB, with a year-on-year decrease of 8.4% in the second half and 55.1% in the first half, primarily due to a rebound in sales volume in the latter half [3][12]. - The average selling price of TFT LCD modules increased significantly, reaching 85.9 RMB per unit in Q1 2024, supported by contributions from the tablet and smart home product segments [42][44]. Summary by Sections Revenue Performance - In 2023, the company reported total revenue of 2.58 billion RMB, with a significant drop in the first half but a recovery in the second half, particularly in non-bonded and bonded TFT LCD module sales [3][12]. - The sales volume for non-bonded TFT LCD modules reached approximately 4.1 million units in 2023, while bonded modules sold around 38.7 million units, showing a notable increase in the second half [3][12]. Product Segments - The tablet display module and other display modules saw a substantial increase in shipment volumes, with Q1 2024 shipments reaching 735,000 and 1,065,000 units, respectively, compared to the same period in 2023 [6]. - The company’s main customer base consists of mobile manufacturers, whose orders remained relatively stable during the previous year's industry downturn, contributing over half of the total revenue [15]. Financial Metrics - The gross profit margin for the second half of 2023 was 6.5%, a decline of approximately 1.4 percentage points from the first half, primarily due to changes in product mix [44]. - The company reported a net profit of 13.1 million RMB for the fiscal year 2023, reversing losses from the first half, attributed to effective cost control measures [21][44]. Market Outlook - The company is expected to maintain a low gross margin due to the anticipated increase in revenue contribution from lower-margin segments such as tablet and smart home products [44][22]. - The market for TFT LCD modules is highly mature, and while horizontal expansion may enhance profitability, the focus should be on long-term value drivers for sustainable investment [22].

Investment Rating - The report assigns a stock rating of NR (Not Rated) for CDOT (00334.HK) [27]. Core Insights - The company experienced a significant year-on-year revenue increase of 57.3% to RMB 931.7 million in 2024 Q1, driven by strong sales of tablet display modules and other display modules, which offset a decline in smartphone module sales [2]. - The gross margin for CDOT in FY 2023 dropped to 6.5%, primarily due to a change in product mix, which may continue to affect profitability [41]. - The company has seen a recovery in sales volume, particularly in the second half of 2023, with non-laminated and laminated module sales volumes reaching 4.1 million and 38.7 million respectively [7]. Summary by Relevant Sections Revenue and Profitability - CDOT reported RMB 2.6 billion in revenue for FY 2023, reflecting a year-on-year decline of 8.4% and a significant drop of 55.1% in the first half of 2023 [7]. - The company achieved a net profit of RMB 13.1 million and an operating profit of RMB 19.0 million in FY 2023, reversing from a loss in the first half of 2023 [20]. Sales Performance - The sales volume of tablet display modules and other display modules in 2024 Q1 reached 0.7 million and 1.1 million, representing increases of 22.7 times and 87.8 times compared to 2023 Q1 [11]. - The ASP (Average Selling Price) of non-laminated and laminated modules increased to RMB 28.5 and RMB 70.4 in 2023 Q4, marking a rebound from previous lows [15]. Market Dynamics - The order book from a major smartphone manufacturer remained stable, contributing significantly to revenue stability in 2024 Q1 [36]. - The company’s strategy includes leveraging support from CSOT to customize panel sizes, enhancing its ability to meet customer demands and expand into the tablet market [40]. Future Outlook - The report indicates that while there has been operational improvement, low gross margins remain a concern, limiting the company's ability to withstand market fluctuations [42]. - The company is expected to see further contributions from the tablet and smart home device segments, potentially driving ASP increases in 2024 [17][19].

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 2,577 million, a decrease of 38.8% compared to RMB 4,208 million in 2022[11] - Gross profit for 2023 was RMB 174 million, with a gross margin of 6.8%, down from RMB 344 million and 8.2% in 2022[11] - Net profit attributable to owners of the parent for 2023 was RMB 13 million, a significant decline from RMB 169 million in 2022[11] - Total sales volume for the year ended December 31, 2023, reached 47.6 million units, a year-on-year decrease of 12.1%[25] - Overall average selling price (excluding processing modules) decreased by 26.1% to RMB 58.7, with total revenue of RMB 2,576.8 million, down 38.8% year-on-year[25] - Revenue from the mainland China market was RMB 759.9 million, a decline of 61.5% year-on-year, while revenue from Hong Kong was RMB 1,816.0 million, down 18.7%[31] Assets and Liabilities - The total assets as of December 31, 2023, were RMB 2,532 million, slightly down from RMB 2,580 million in 2022[12] - The company maintained a low debt ratio of 0.1% with total liabilities of RMB 1,522 million[17] - The total equity attributable to the parent company as of December 31, 2023, was RMB 1,009.4 million, with a capital debt ratio of 0.1%[42] - The group had no pledged assets as of December 31, 2023, maintaining a clean balance sheet[43] Market Trends - Global smartphone shipments in 2023 totaled 1,165 million units, a decline of 3.5% year-on-year, marking the lowest level in nearly a decade[24] - The global shipment of A-Si LCD panels reached approximately 1,120 million units in 2023, reflecting a year-on-year increase of about 35.2%[24] - The global economic growth forecast for 2024 is expected to slow down, with China's economic growth projected at 4.6%[37] - IDC forecasts that smartphone shipments in China will reach 287 million units in 2024, a year-on-year growth of 3.6%[37] Product Development and Strategy - The company is optimistic about the growth of the display module business, aiming to expand its market share in smart home and mid-size markets[21] - The new smart factory has significantly improved production efficiency and reduced costs, enhancing product quality and economies of scale[20] - The company plans to strengthen its foundational equipment and diversify its product range to support long-term growth[21] - The group plans to invest more in the mid-sized commercial display market, anticipating partnerships with several well-known brand customers in 2024 and adding two new mid-sized production lines within the year[38] - The company recorded a significant increase in sales of mid-size products, reaching 2.9 million units, a year-on-year increase of 43.9%[35] - The revenue from mid-size products amounted to RMB 185.9 million, reflecting a year-on-year increase of 61.5%[35] Corporate Governance - The company aims to become a leading LCD module enterprise while enhancing corporate governance and business ethics[81] - The independent non-executive director, Ms. Xu Huimin, has over 20 years of accounting experience and has served as the chairman of the audit committee since June 2015[68] - The company has a strong management team with significant experience in human resources and marketing, including Mr. Hu Yudong, who has over 16 years of experience in human resources management[73] - The company has been actively expanding its board with experienced professionals in various fields, including law and telecommunications[72][76] - The company has established effective mechanisms to ensure independent viewpoints and opinions are obtained for board decisions[101] - The board consists of 7 members, all possessing the necessary professional background and expertise to guide and supervise the group's strategic focus[93] Risk Management and Compliance - The audit committee is responsible for overseeing the company's financial reporting and the relationship with external auditors[127] - The company has implemented internal control policies to ensure the reliability of financial reporting and compliance with relevant laws and regulations[159] - The audit committee reviews the effectiveness of the internal control and risk management systems, covering financial, operational, and compliance monitoring[160] - The company has adopted a whistleblowing policy and anti-corruption policy to promote compliance with anti-corruption laws and provide channels for reporting misconduct[166] - Related party transactions are monitored to ensure compliance with listing rules and conducted on fair and reasonable terms[167] Employee Management and Development - The total employee cost for the review period was RMB 208 million, with a workforce of 3,219 employees[52] - The company maintains a proactive approach to human resources management, focusing on employee assessment, talent acquisition, training, and morale[183] - The company organized 28 sessions for ECP certification and skill level assessment, with 714 individuals meeting the required standards for promotion or certification[187] - The company achieved a 100% training participation rate among employees during the review period, with an average training duration of 88 hours per person for the "Eagle Training Camp" program[190] - The company has established a unified standard for talent assessment and promotion, providing clear career development paths for employees[186] Environmental Responsibility - In 2023, the company invested approximately RMB 5.58 million in new environmental protection facilities and RMB 1.08 million in environmental management, ensuring compliance with national standards for wastewater, waste gas, and waste emissions[196] - The company saved 6,938,000 kWh of electricity and 177,000 tons of water through energy efficiency projects and improved production processes in 2023[196] - The company launched various community service initiatives, focusing on environmental protection and youth care, to fulfill its corporate social responsibility[197] Customer Relations and Supply Chain - The group has established strong relationships with major clients, including a subsidiary of TCL, ensuring stable order volumes[57] - The group has implemented a multi-source procurement policy and strategic inventory management to ensure sufficient supply of production materials[58] - The group benefits from stable material supply since the launch of TCL Huaxing's display panel production line "t9" in September 2022[58] - The group is focused on horizontal business expansion and developing diversified product types to attract new customers[57]

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 2,576,806 thousand, a decrease of 38.7% compared to RMB 4,208,350 thousand in 2022[50]. - Gross profit for 2023 was RMB 174,051 thousand, down 49.3% from RMB 343,744 thousand in the previous year[50]. - Profit before tax decreased significantly to RMB 18,347 thousand, a decline of 89.0% from RMB 167,706 thousand in 2022[50]. - Net profit for the year was RMB 13,086 thousand, representing a drop of 92.3% compared to RMB 169,025 thousand in the prior year[50]. - Basic and diluted earnings per share for 2023 were RMB 0.62, down from RMB 8.06 in 2022[50]. - The total comprehensive income reported was RMB 9,283 million for the year, compared to RMB 168,668 million in the previous year[46]. - The total revenue from sales to related parties was approximately RMB 992,260,000 for the year ending December 31, 2023, down from RMB 1,762,880,000 in 2022[94]. - The revenue from industrial product sales was RMB 4,172,765,000, while processing and manufacturing services contributed RMB 35,585,000, totaling RMB 4,208,350,000 in customer contract revenue[96]. - The net profit attributable to the owners of the parent company was RMB 13.1 million in 2023, representing a significant decrease of 92.3% year-on-year from RMB 169.0 million in 2022[128]. - The company reported a total tax expense of RMB 5,261,000 for the year, compared to a tax credit of RMB 1,319,000 in 2022[104]. Cash and Equity - As of December 31, 2023, the group's cash and cash equivalents and time deposits amounted to RMB 422 million, with 11.2% in USD, 83.5% in RMB, and 5.3% in HKD[5]. - The total equity attributable to the parent company as of December 31, 2023, was RMB 1,009.4 million, with a capital debt ratio of 0.1%[6]. - Total equity as of December 31, 2023, was RMB 1,009,448 thousand, slightly down from RMB 1,000,165 thousand in 2022[54]. - Non-current liabilities totaled RMB 12,632 thousand, a decrease from RMB 75,635 thousand in the previous year[53]. - The group’s interest-bearing bank loans amounted to RMB 3.2 million as of December 31, 2023[39]. Customer and Market Dynamics - The largest customer and the top five customers accounted for approximately 53% and 89% of the group's revenue, respectively[8]. - The group is committed to diversifying its product range to reduce reliance on single customers and attract new clients[10]. - Revenue from mainland China was RMB 759.9 million, a decline of 61.5% from RMB 1,973.9 million[172]. - Revenue from Hong Kong was RMB 1,816.0 million, down 18.7% from RMB 2,232.8 million[172]. Operational Developments - The group plans to increase investment in the smart home and mid-size commercial display markets, with two new mid-size production lines expected to be added within the year[2]. - The group maintains a cautious optimism regarding the development prospects of the display module business, aiming to enhance competitiveness through improved supply chain layout and cost control[3]. - The company has implemented multiple smart production lines in its new display module factory in Huizhou, enhancing production efficiency and product quality[172]. - The company aims to expand its product range and technology platforms, focusing on medium-sized display modules and smart home devices to enhance competitiveness[185]. Cost Management - The total employee cost for the review period was RMB 208.0 million, with a workforce of 3,219 employees[28]. - The company has implemented strict production cost controls to mitigate the impact of external factors on its operations[142]. - Selling and distribution expenses were RMB 19,807 thousand, an increase from RMB 39,824 thousand in the previous year[50]. - The company reported a research and development expense of RMB 118.2 million in 2023, a decrease of 10.5% from RMB 132.0 million in 2022[122]. Economic Outlook - Global economic growth is expected to slow significantly in Q1 2024, with China's growth forecast at 4.6%[36]. - The global consumer electronics industry revenue is projected to exceed USD 1 trillion in 2024, indicating a growth trend[36]. - Smartphone shipments in China are expected to reach 287 million units in 2024, a year-on-year increase of 3.6%[36]. - The global smartphone shipment volume in 2023 was 1,165 million units, a decline of 3.5% year-on-year, marking the lowest level in nearly a decade[140]. - The global smartphone panel shipment volume is expected to grow by approximately 18% in 2023, indicating a recovery in panel demand despite declining smartphone shipments[152]. Compliance and Governance - The group has not engaged in any major litigation as of December 31, 2023[22]. - The group has established stable relationships with suppliers, with the largest supplier accounting for approximately 13% of procurement[11]. - The audit committee has reviewed the group’s annual performance and accounting principles for the year ending December 31, 2023[32]. - The company has not identified any significant impact from the recent accounting standard revisions on its financial statements[90]. - The company is currently evaluating the impact of the recent revisions to liability classification and expects no significant effects on its financial statements[111].

Revenue and Sales Performance - For the six months ended June 30, 2023, the total revenue was RMB 1,226,859,000, a decrease of 55.1% compared to RMB 2,735,253,000 for the same period in 2022[17] - Sales of industrial products amounted to RMB 1,209,564,000, down 55.4% from RMB 2,710,676,000 in the previous year[17] - Revenue from the mainland China market was RMB 196,576,000, a significant decline of 87.3% from RMB 1,545,853,000 in 2022[17] - Revenue from other countries/regions was RMB 1,030,283,000, a decrease of 13.4% compared to RMB 1,189,400,000 in the previous year[17] - Revenue from sales to related companies for the six months ended June 30, 2023, was approximately RMB 485,285,000, compared to RMB 1,016,830,000 for the same period in 2022[87] - In the first half of 2023, the total sales volume of the group's sales modules reached 21.2 million units, contributing RMB 1,209.6 million to the revenue, a decrease of 32.2% year-on-year[173] - The total sales for the six months ended June 30, 2023, reached 22.0 million units, a year-on-year decrease of 32.2%[194] Profitability and Loss - The company reported a loss per share of RMB 0.35 for the period, compared to a profit of RMB 6.44 per share in the previous year[31] - The net loss attributable to the parent company for the six months ended June 30, 2023, was RMB 7,418,000, compared to a profit of RMB 133,973,000 in the same period of 2022[51] - The total comprehensive loss for the period was RMB 16,771,000, which includes a loss of RMB 7,418,000 and an exchange difference of RMB 9,353,000[76] - The company reported a loss before tax of RMB (11,076) thousand for the six months ended June 30, 2023, compared to a profit of RMB 113,141 thousand in the same period of 2022[60] - The company reported a net loss attributable to shareholders of RMB 7.4 million, primarily due to reduced orders from major customers[195] Expenses and Costs - Gross profit for the same period was RMB 86,774,000, down 58.5% from RMB 208,896,000 in the previous year[51] - The cost of sales for the six months ended June 30, 2023, was RMB 1,140,085 thousand, a decrease of 56.5% compared to RMB 2,625,357 thousand in the same period of 2022[74] - Research and development expenses for the period amounted to RMB 52,136 thousand, down 32.7% from RMB 77,413 thousand in the same period of 2022[74] - The depreciation of property, plant, and equipment increased to RMB 51,559 thousand, up 93.0% from RMB 26,714 thousand in the same period of 2022[74] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 1,785,503,000, a decrease from RMB 1,904,750,000 at the end of 2022[51] - Current liabilities totaled RMB 1,590,324,000, an increase of 5.7% from RMB 1,504,381,000 at the end of 2022[51] - The company's cash and cash equivalents decreased significantly to RMB 690,800,000 from RMB 278,972,000, indicating a decline of 75.5%[51] - The total equity attributable to the parent company was RMB 983,394,000 as of June 30, 2023, down from RMB 1,000,165,000 at the end of 2022[36] - The total accounts payable decreased slightly to RMB 1,065,438,000 from RMB 1,072,636,000 year-on-year[121] Cash Flow - The net cash flow from operating activities for the six months ended June 30, 2023, was RMB (147,362) thousand, a significant decrease from RMB 2,542 thousand in the same period of 2022[60] - Cash and cash equivalents, including bank balances and fixed deposits, amounted to RMB 690,800,000, up from RMB 278,972,000 at the end of 2022[119] Market and Industry Trends - The smartphone market is expected to decline by 5.2% year-on-year in 2023, with total shipments projected at 1,144 million units[179] - The overall average selling price (excluding processed modules) decreased by 34.1% to RMB 57.2[173] - The smartphone display panel shipment volume decreased by 9.0% quarter-on-quarter in Q1 2023, with a recovery in Q2 driven by low inventory levels[194] Strategic Focus and Development - The company plans to continue focusing on research and development, with R&D costs included in administrative expenses[21] - The company is actively engaged in research and development of new technologies to enhance its product offerings and market competitiveness[81] - The company is focusing on developing mid-size display modules and smart home devices to enhance competitiveness in the market[200] - The company is leveraging its subsidiary, Huizhou Keda Tezhixian Technology Co., Ltd., as a supplier for IoT-related products to capture potential market opportunities[200] - The company aims to mitigate external economic impacts through strict production cost control and increased production efficiency[195]

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 4,208 million, a decrease of 28% from RMB 5,840 million in the previous year[39] - Gross profit for the same period was RMB 344 million, with a gross margin of 8.2%, slightly down from 8.5% in the previous year[39] - Profit attributable to the owners of the parent company was RMB 169 million, compared to RMB 193 million in the previous year[39] - Revenue from continuing operations for the year ended December 31, 2022, was RMB 4,208,350 thousand, a decrease of 28% from RMB 5,840,094 thousand in 2021[71] - Gross profit for the year was RMB 343,744 thousand, down from RMB 494,632 thousand in the previous year, reflecting a decline of approximately 30.5%[71] - Profit before tax from continuing operations was RMB 167,706 thousand, compared to RMB 219,888 thousand in 2021, representing a decrease of about 23.7%[71] - The net profit attributable to owners of the parent for the year was RMB 169,025 thousand, slightly up from RMB 166,488 thousand in 2021, indicating a marginal increase of 0.3%[71] - Total comprehensive income for the year was RMB 168,668 thousand, down from RMB 199,522 thousand in the previous year, reflecting a decrease of approximately 15.4%[75] - The basic earnings per share for the year was RMB 8.06, compared to RMB 9.22 in 2021, showing a decline of about 12.6%[71] Assets and Liabilities - Total assets as of December 31, 2022, were RMB 2,580 million, down from RMB 2,887 million in the previous year[40] - Total liabilities decreased to RMB 1,580 million from RMB 2,056 million, resulting in a net asset increase to RMB 1,000 million from RMB 831 million[40] - Non-current assets increased to RMB 675,431,000 in 2022 from RMB 533,269,000 in 2021, representing a growth of 26.6%[78] - Current assets decreased to RMB 1,904,750,000 in 2022 from RMB 2,353,796,000 in 2021, a decline of 19.0%[78] - Total liabilities decreased to RMB 1,580,016,000 in 2022 from RMB 2,055,568,000 in 2021, a reduction of 23.1%[78] - Net assets increased to RMB 1,000,165,000 in 2022 from RMB 831,497,000 in 2021, reflecting a growth of 20.3%[80] - The company’s total equity increased by 20.3% to RMB 1,000,165,000 in 2022, up from RMB 831,497,000 in 2021[80] Cash Flow and Financial Management - Cash flow from operating activities for the year was RMB 129,491,000, down 78% from RMB 600,255,000 in the previous year[124] - The company’s cash flow from investing activities showed a net outflow of RMB 887,294,000, compared to a net inflow of RMB 46,791,000 in the previous year[124] - Cash and cash equivalents decreased significantly to RMB 278,972,000 in 2022 from RMB 1,053,445,000 in 2021, a drop of 73.5%[78] - The company reported a net loss from derivative financial instruments of RMB 28,619,000, with no such loss reported in the previous year[124] - The company’s financing costs decreased to RMB 1,646,000 from RMB 2,627,000 in the previous year[124] Market and Sales Performance - The group achieved sales of 52.5 million display modules, accounting for 96.9% of total sales, with a revenue of RMB 4,172.8 million[54] - The average selling price decreased by 12.7% year-on-year to RMB 79.4 per unit, excluding processing modules[54] - Global panel shipments declined by over 8% year-on-year in 2022, influenced by the ongoing downturn in the smartphone market[53] - The smartphone market faced significant pressure, with global smartphone shipments declining by 11.3% year-on-year to 1,210 million units in 2022[96] - The company anticipates a 1.9% year-on-year increase in mobile phone shipments in China for the first half of 2023, indicating a challenging market environment[114] Strategic Initiatives and Future Outlook - The company completed the acquisition of 100% equity in IoT product supplier Keda Smart Display, which is expected to enhance its software platform and create synergies with its module business[45] - The group plans to focus on expanding into the medical, smart home, and mid-size industrial control display markets to enhance competitiveness[50] - The collaboration with TCL Huaxing aims to penetrate the mid-size specialized display market, leveraging a panel module integration business model[48] - The group remains cautiously optimistic about the long-term prospects of the display module business despite current challenges[50] - The company aims to strengthen its customer base and optimize its product structure through deepened collaboration with TCL Huaxing, targeting the mid-size professional display market[108] Employee and Corporate Governance - The group had a total employee cost of RMB 279.2 million during the review period, with 2,061 employees as of December 31, 2022[190] - The company aims to provide competitive compensation and benefits, regularly updating its remuneration policies in line with local GDP growth and legal regulations[190] - The company has established a code of conduct for securities trading, which all directors confirmed compliance with for the year ended December 31, 2022[15] - The company has no directors with interests in competing businesses as of December 31, 2022[8] - The company has not engaged in any significant litigation as of December 31, 2022, indicating a stable legal standing[121] Related Party Transactions - Related transactions were conducted with TCL Technology and its affiliates during the year ended December 31, 2022[173] - The company received processing fees of RMB 35,585,000 from TCL Technology Group for the year ended December 31, 2022[1] - The company paid RMB 1,516,000 to Huizhou TCL for human resources services for the year ended December 31, 2022[2] - The company paid RMB 2,549,000 to Qianhai Qihang for logistics and import agency services for the year ended December 31, 2022[5] Compliance and Audit - The audit committee reviewed the financial statements for the year ended December 31, 2022, and confirmed compliance with applicable accounting standards and regulations[17] - The independent auditor, Ernst & Young, issued an unqualified opinion on the company's continuous connected transactions for the year ended December 31, 2022[7] - The company has not entered into any management contracts for the operation of its main business during the reporting period[9] Share Option and Incentive Plans - The share option plan aims to reward and incentivize eligible participants who contribute to the operational success of the group[150] - The maximum number of shares that can be granted to any participant under the share incentive plan is limited to 1% of the issued share capital at the time of adoption, which is 17,214,998 shares[170] - The company has granted a total of 103,289,988 shares under the share incentive plan, of which 102,946,488 shares have vested and 343,500 shares have been forfeited[171] - No stock options or rewards were granted under the stock option plan or share incentive plan during the year ended December 31, 2022[172]

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佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何 部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 China Display Optoelectronics Technology Holdings Limited 華 顯 光 電 技 術 控 股 有 限 公司 （於百慕達註冊成立之有限公司） 334 （股份代號： ） 業績公佈 截至二零二二年十二月三十一日止年度 財務摘要 業績 截至 截至 二零二二年 二零二一年 十二月 十二月 三十一日 三十一日 止年度 止年度 變動 人民幣千元 人民幣千元 持續經營業務 4,208,350 5,840,094 (27.9%) ...

Financial Performance - Revenue from continuing operations for the six months ended June 30, 2022, was RMB 2,735,253 thousand, a decrease of 4.1% compared to RMB 2,852,542 thousand in the same period of 2021[11] - Gross profit for the same period was RMB 208,896 thousand, down 6.6% from RMB 223,634 thousand year-on-year[11] - Profit attributable to owners of the parent for the period was RMB 133,973 thousand, representing an increase of 37.5% compared to RMB 97,552 thousand in the previous year[11] - Basic earnings per share for the period was RMB 6.44, compared to RMB 4.65 in the same period last year, reflecting a year-on-year increase of 38.3%[11] - For the six months ended June 30, 2022, the company reported a total comprehensive income of RMB 134,016 thousand, compared to RMB 103,967 thousand for the same period in 2021, representing an increase of approximately 29.0%[19] - The company reported a profit attributable to owners of the parent from continuing operations of RMB 133,973 thousand for the six months ended June 30, 2022, compared to RMB 70,825 thousand in the same period of 2021[68] Assets and Liabilities - Total assets as of June 30, 2022, amounted to RMB 1,529,060 thousand, a decrease from RMB 1,586,715 thousand as of December 31, 2021[15] - Current liabilities decreased to RMB 1,685,368 thousand from RMB 2,038,131 thousand at the end of the previous year, indicating improved liquidity[15] - Net assets attributable to owners of the parent increased to RMB 957,987 thousand from RMB 831,497 thousand, showing a growth of 15.2%[17] - As of June 30, 2022, total equity amounted to RMB 957,987 thousand, an increase from RMB 736,525 thousand as of June 30, 2021, representing a growth of approximately 30.0%[21] - Trade payables as of June 30, 2022, totaled RMB 1,286,510,000, a decrease from RMB 1,477,768,000 as of December 31, 2021[81] Cash Flow - The cash flow from operating activities for the six months ended June 30, 2022, was RMB 2,542 thousand, a significant decrease from RMB 392,588 thousand in the same period of 2021, indicating a decline of approximately 99.3%[25] - The net cash flow from operating activities for the six months ended June 30, 2022, was RMB 2,542,000, a significant decrease from RMB 392,588,000 in the same period of 2021[27] - The net cash flow used in investing activities was RMB (65,604,000), an improvement compared to RMB (77,788,000) in the previous year[27] - The net cash flow from financing activities was RMB 4,134,000, down from RMB 90,332,000 in the prior year[27] - The total cash and cash equivalents at the end of the period amounted to RMB 1,015,860,000, compared to RMB 821,488,000 at the end of the previous period[27] Revenue Breakdown - Revenue from mainland China was RMB 1,545,853,000, down 8.8% from RMB 1,694,817,000 in the previous year[42] - Revenue from other countries/regions increased to RMB 1,189,400,000, up 2.7% from RMB 1,157,725,000 in the prior year[42] - Revenue declined to RMB 2,735 million, a decrease of 4.1% year-on-year, primarily due to reduced demand and inventory adjustments by major brand customers[124] - Revenue from mainland China and Hong Kong accounted for 99.9% of total revenue, with RMB 1,546 million and RMB 1,187 million respectively[128] Expenses and Costs - The cost of sales for the period was RMB 2,625,357,000, slightly down from RMB 2,628,132,000 in the previous year[52] - Research and development expenses for the period were RMB 77,413,000, a decrease of 11% from RMB 87,003,000 in the previous year[52] - The company recorded a loss of RMB 7,529 thousand related to equity-settled share-based payment arrangements during the six months ended June 30, 2022[19] - The company incurred capital expenditures of RMB (79,680,000) for property, plant, and equipment, down from RMB (130,071,000) in the previous year[27] Shareholder Information - The total issued and fully paid ordinary shares remained at 2,114,307,929 shares as of June 30, 2022, with a corresponding value of RMB 172,134,000[91] - The company did not recommend any dividend payment for the six months ended June 30, 2022, consistent with the previous year[69] - The company declared no interim dividend for the six months ended June 30, 2022, consistent with the previous year[169] Strategic Initiatives - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[11] - The company maintained strategic partnerships with major clients, which helped mitigate the impact of industry-wide pressures[124] - The group acquired 100% equity of Gaosenda Intelligent Technology Co., Ltd. for RMB 51 million, enhancing its IoT product supply chain[134] Related Party Transactions - The company reported related party transactions with TCL Technology and its subsidiaries amounting to RMB 673,601,000 in total sales, with product sales contributing RMB 24,577,000[110] - The interest income from related parties was RMB 12,522,000, compared to RMB 6,198,000 in the previous year[110] - As of June 30, 2022, the company had receivables from related parties totaling RMB 343,480,000, a decrease from RMB 453,462,000 as of December 31, 2021[114] Corporate Governance - The audit committee has been established to review and supervise the financial reporting process and internal controls of the group[177] - The audit committee consists of three members, including the chairperson, Ms. Xu Huimin, and two independent non-executive directors, Mr. Li Yang and Mr. Xu Yan[177] - The company complied with the corporate governance code, with some deviations noted regarding the company secretary's employment status[172]

Financial Performance - The company achieved a total sales volume of 66.7 million units in 2021, representing a year-on-year increase of 34.0%[23] - Revenue for the year reached RMB 5,840 million, a growth of 63.5% compared to RMB 3,571 million in 2020[23] - The gross profit was RMB 495 million, with a gross margin of 8.5%, up from 7.8% in the previous year[14] - Net profit attributable to the owners of the parent company was RMB 193 million, significantly higher than RMB 25 million in 2020[14] - Revenue grew to RMB 5,840 million, a year-on-year increase of 63.5%[31] - The average selling price increased by 8.4% to RMB 91.0, excluding processing modules[32] - Gross profit reached RMB 495 million, with a gross margin of 8.5%, up 0.7 percentage points year-on-year[32] - Net profit attributable to the parent company surged to RMB 193 million, a year-on-year increase of 668.3%[32] - Total revenue for the year ended December 31, 2021, was RMB 5,840 million, representing a 63.5% increase compared to RMB 3,571 million in 2020[36] Asset and Liability Management - Cash and cash equivalents increased to RMB 1,053 million from RMB 417 million in the previous year[15] - Total assets decreased to RMB 2,887 million from RMB 3,115 million, while total liabilities also decreased to RMB 2,056 million from RMB 2,364 million[15] - The current ratio improved to 1.15 from 0.93, indicating better short-term financial health[16] - As of December 31, 2021, cash and cash equivalents totaled RMB 1,072 million, with a capital debt ratio of 2.7%[45] Sales and Market Expansion - Sales of A-Si LCD modules increased by 53.1% to 63.7 million units, accounting for 95.5% of total sales[31] - The domestic shipment of 5G smartphones reached 266 million units, a year-on-year growth of 63.5%, accounting for 75.9% of total smartphone shipments in China[28] - Sales volume of tablet and electronic education display modules increased by 78.3%, reaching 3.5 million units during the review period[41] - The company aims to explore markets in automotive displays, laptops, and IoT devices to capture growth opportunities in the mid-size display module market[44] - The company plans to enhance production capacity with the new smart factory in Huizhou expected to commence operations in Q2 2022[31] Strategic Focus and Partnerships - The company is focusing on optimizing its industry layout, product structure, and manufacturing and supply chain systems to enhance competitiveness[23] - The company aims to strengthen partnerships with leading brand customers and expand into mid-size display modules for automotive, commercial laptops, and IoT markets[31] - The company is committed to maintaining strategic partnerships with top global smartphone brands, with over 70% of total revenue coming from these clients[41] Corporate Governance - The company has complied with the corporate governance code, with no significant deviations reported for the year ending December 31, 2021[84] - The board of directors expressed confidence in achieving long-term growth targets, supported by a robust business strategy and market demand[66] - The board consists of seven directors, all possessing the necessary professional background and expertise to guide and supervise the group's strategic focus[92] - The company has a dedicated team for financial and investor relations to ensure timely communication of performance and developments[85] - The company has implemented a written guideline for employees regarding the trading of company securities to prevent insider trading[120] Risk Management and Internal Controls - The company maintains an effective internal control and risk management system, which is reviewed annually by external auditors[162] - The board is responsible for ensuring the establishment and maintenance of appropriate internal controls and risk management systems[162] - The audit committee reviews the external auditor's findings related to internal controls and the actions taken by management to address identified issues[166] Employee Management and Development - The group had a total employee cost of RMB 367 million during the review period, with 4,111 employees as of December 31, 2021[56] - The company has established a career development pathway for all positions, focusing on both technical and managerial skills to nurture and promote talent[188] - During the review period, the company recruited 29 fresh graduates and provided over 264,000 hours of training, with external training costs exceeding RMB 250,000[190] - The company organized outdoor team-building activities with nearly 100 employees participating, aimed at strengthening organizational cohesion and team spirit[191] Sustainability and Corporate Social Responsibility - The company is committed to sustainable development and corporate social responsibility, integrating these principles into daily operations[58] - The management emphasized the importance of sustainability initiatives, committing to reduce carbon emissions by H% by 2025[66] - The company achieved energy savings of 391.55 kWh and water savings of 61,000 tons through improved production efficiency and product yield[197] - The company engaged in various community service activities, accumulating a total of 78 hours of volunteer service during the review period[198] - The company has implemented a comprehensive management system for environmental protection, ensuring compliance with relevant laws and regulations without any violations during the review period[197]