Audit Committee and External Auditor - The audit committee held 2 meetings in the fiscal year ending December 31, 2022, with all members attending both meetings[1][7] - The company paid approximately RMB 2.46 million for audit services and RMB 33,000 for non-audit services to KPMG in 2022[24] - The audit committee is responsible for reviewing the scope, results, and cost-effectiveness of audits, as well as the independence and objectivity of the external auditor[2][12] - The audit committee is authorized to have full access to management and receive reasonable resources to perform its duties effectively[13] - The company has appointed KPMG as its external auditor for the fiscal year ending December 31, 2022, until the conclusion of the next annual general meeting[36] Board Governance and Diversity - The company has established a formal, transparent process for appointing new directors, with the nomination committee responsible for identifying and recommending suitable candidates[6][17] - The company has implemented a board diversity policy since August 28, 2013, and achieved gender diversity at the board level since May 2016[18][22] - The company has a diversified board policy, considering factors such as gender, age, cultural and educational background, professional experience, and skills for board appointments[40] - The board of directors includes three independent non-executive directors, ensuring balanced power and authority within the group[125] - The nomination committee, consisting of three independent non-executive directors, held at least one formal meeting during the fiscal year ended December 31, 2022[126] Risk Management and Internal Controls - The risk management and internal control system is designed to provide reasonable but not absolute assurance against material misstatement or loss[24] - The audit committee oversees the design, implementation, and monitoring of the risk management and internal control systems[24] - The company has established a department responsible for risk monitoring and internal audit, with quarterly reviews of risk management and internal control systems[43] - The Board of Directors has reviewed the effectiveness of the risk management and internal control systems and deemed them effective and comprehensive[44] - The company has implemented strict procedures and internal controls for handling and disseminating inside information, adhering to the guidelines issued by the Securities and Futures Commission[91] Financial Performance and Position - The company's financial statements for 2022 were prepared on a going concern basis, with appropriate and consistent accounting policies adopted[19] - Net current assets increased to RMB 903.4 million as of December 31, 2022, compared to RMB 686.4 million as of December 31, 2021[101] - Capital gearing ratio decreased to 33.0% as of December 31, 2022, from 33.9% as of December 31, 2021[102] - Total assets pledged for bank credit amounted to RMB 503.1 million as of December 31, 2022, down from RMB 617.1 million as of December 31, 2021[103] - The company did not conduct any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the fiscal year ended December 31, 2022[97] - The company's profit attributable to shareholders decreased by RMB 60.4 million to RMB 216.6 million in 2022[134] - As of December 31, 2022, the company had short-term bank loans and other borrowings of RMB 745.1 million, with 40.0% of the debt being secured[135] - The company invested RMB 134.1 million in property, plant, and equipment in 2022, funded through internal resources and bank loans[136] - The company's income tax expense decreased by RMB 43.9 million from RMB 76.5 million in 2021 to RMB 32.6 million in 2022, with the effective tax rate dropping to 13.1% from 21.6% due to 100% additional deduction for qualified R&D expenses[188] ESG and Sustainability - The company's ESG report excludes the gaming business segment, which accounted for 0.22% of revenue in 2022[60] - The company has established a top-down ESG governance framework, with the Board of Directors taking overall responsibility for ESG matters[65] - The company's ESG report is prepared in accordance with the Hong Kong Stock Exchange's ESG Reporting Guide and the GRI Standards[62] - The company has a whistleblowing and anti-corruption policy, with further disclosures available in the ESG section of the annual report[77] - The company's ESG report covers the period from January 1, 2022, to December 31, 2022, with some information appropriately traced back to previous years for clarity and comparability[80] - The company has a strong focus on environmental sustainability, with dedicated recycling facilities to reuse metals and other resources in production[104] - The company increased its recycled copper imports by 50.4% in 2022 compared to 2021, effectively addressing raw material supply difficulties caused by domestic pandemic conditions and reducing the proportion of new material usage to lower production costs[193] - The company shifted its raw material procurement supply chain center from Shanghai to Ningbo and Jiangxi near Zhejiang regions, with Shanghai taking a secondary position, to reduce logistics costs and ensure supply timeliness during the Shanghai pandemic outbreak[193] Corporate Governance and Compliance - The company has adopted an anti-corruption policy effective from July 5, 2022, emphasizing zero tolerance for corrupt practices[31] - The company has a whistleblowing policy in place since March 29, 2012, to address concerns related to financial reporting, internal controls, or other corporate misconduct[51] - The company has a procedure for shareholders to nominate candidates for directorship, with details available on the company's website[48] - The company has a clear process for shareholders to request an extraordinary general meeting, with provisions for reimbursement of reasonable expenses if the Board fails to convene the meeting[55] - The company has maintained compliance with the Corporate Governance Code as set out in Appendix 14 of the Listing Rules of the Hong Kong Stock Exchange[108] - The company's charter documents, including the Memorandum and Articles of Association, are available on its website and the Stock Exchange's website, with no changes in 2022[58] - The company's Board of Directors guarantees the accuracy of the report's content, with no false statements, misleading information, or significant omissions[89] - The company updated its "Core Shareholder Protection Standards" to ensure fair and transparent related-party transactions[152] Remuneration and Compensation - The remuneration committee aims to hold at least 2 meetings annually to review and recommend compensation policies for directors and senior management[14] - The company has established a formal and transparent policy for director remuneration, with salary ranges between RMB 1,000,001 to RMB 3,000,000[128] - The company's executive directors' compensation includes fixed and variable elements, with the variable portion based on performance and approved by the board[143] Investor Relations and Communication - The Board of Directors maintains regular communication with institutional investors and analysts to keep them informed about the company's strategies, operations, management, and plans[54] - The company has implemented a disclosure policy to ensure timely, accurate, and detailed disclosure of significant information, with management controls to identify and assess potential insider information[45] - The company uses its website to communicate important information to shareholders, including announcements, circulars, annual reports, and interim reports[69] - The company adheres to strict information disclosure and investor relationship management practices, ensuring shareholders' rights to information and participation[147] Operational and Financial Highlights - Funnytime achieved revenue of RMB 13.6 million in 2022, a 30.8% increase from 2021, with a net loss of RMB 0.2 million, a 92.9% reduction from the previous year, driven by the launch of two new games[129] - The company's other expenses decreased by RMB 60.7 million to RMB 1.3 million in 2022, primarily due to a RMB 59.7 million net loss on derivative financial instruments in 2021[131] - Administrative expenses increased by RMB 20.1 million to RMB 334.1 million in 2022, mainly due to higher R&D costs[133] - The company has foreign exchange risk exposure due to exports and imports denominated in foreign currencies, and uses forward foreign exchange contracts and options to hedge this risk[139] - The company's chairman and CEO roles are separated, with Mr. Hu Changyuan serving as chairman and Mr. Hu Minglie as CEO[141] Employee Training and Development - The company organized a total of 19,505 training sessions, covering 103,354.5 class hours in 2022, focusing on safety, quality, and operational skills[162] - The employee turnover rate for probationary employees decreased by 2% year-on-year in 2022, marking a continuous decline for three years[162] - The company implemented a "mentorship system" for production staff, enhancing skill levels and reducing turnover[162] - The company established the "Xingye Craftsman" award, recognizing 10 employees with the title in January 2022[170] Safety and Environmental Compliance - The company conducted 9 safety and environmental inspections in 2022, including checks on hazardous chemicals and electrical safety[168] - No work-related deaths, fires, explosions, or chemical poisoning incidents occurred during the reporting period[169] - The company conducted monthly inspections on hazardous chemical storage to ensure compliance with government regulations[168] Community Engagement and Social Responsibility - The company donated 15 sets of school uniforms and over 30,000 RMB worth of supplies to underprivileged students in 2022[171] - Employees accumulated over 1,700 volunteer hours participating in community service activities, including pandemic relief efforts[171]

[Financial Statements](index=1&type=section&id=Financial%20Statements) [Consolidated Income Statement](index=1&type=section&id=Consolidated%20Income%20Statement) The Group's total revenue for 2022 was RMB 6.239 billion, a 10.2% decrease from RMB 6.950 billion in 2021, with profit for the year at RMB 217 million, down 21.8% year-on-year, and basic earnings per share decreasing from RMB 0.32 to RMB 0.24 | Indicator | 2022 (RMB thousands) | 2021 (RMB thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 6,238,504 | 6,949,881 | -10.2% | | Gross Profit | 587,947 | 790,468 | -25.6% | | Operating Profit | 232,302 | 368,410 | -36.9% | | Profit Before Tax | 249,417 | 353,862 | -29.5% | | Profit for the Year | 216,826 | 277,343 | -21.8% | | Profit Attributable to Equity Holders of the Company | 216,607 | 276,977 | -21.8% | | Basic Earnings Per Share (RMB) | 0.24 | 0.32 | -25.0% | [Consolidated Statement of Comprehensive Income](index=3&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) Total comprehensive income for 2022 was RMB 222 million, a decrease from RMB 276 million in 2021, primarily due to lower profit for the year, partially offset by positive exchange differences | Indicator | 2022 (RMB thousands) | 2021 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Year | 216,826 | 277,343 | | Exchange differences on translation of financial statements of overseas operations | 4,845 | (881) | | **Total Comprehensive Income for the Year** | **221,671** | **276,462** | [Consolidated Balance Sheet](index=4&type=section&id=Consolidated%20Balance%20Sheet) At the end of 2022, the Group's total assets increased to RMB 4.171 billion, and net assets increased to RMB 1.786 billion, indicating a solid financial position, with net current assets significantly rising from RMB 686 million to RMB 903 million | Indicator | December 31, 2022 (RMB thousands) | December 31, 2021 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 1,045,676 | 967,917 | | Current Assets | 3,125,809 | 2,605,024 | | **Total Assets** | **4,171,485** | **3,572,941** | | Current Liabilities | 2,222,433 | 1,918,608 | | Non-current Liabilities | 163,522 | 85,462 | | **Total Liabilities** | **2,385,955** | **2,004,070** | | **Net Assets** | **1,785,530** | **1,568,871** | | Net Current Assets | 903,376 | 686,416 | [Notes to the Financial Statements](index=5&type=section&id=Notes%20to%20the%20Financial%20Statements) [Basis of Preparation and Accounting Policies](index=5&type=section&id=Basis%20of%20Preparation%20and%20Accounting%20Policies) Financial statements are prepared in accordance with all applicable IFRS and Hong Kong Companies Ordinance requirements, with new and revised IFRS effective during the year having no significant impact on the Group's results or financial position - Financial statements strictly comply with International Financial Reporting Standards and Hong Kong Companies Ordinance disclosure requirements[35](index=35&type=chunk) - New and revised IFRS first applied this year had no significant impact on the Group's financial position[37](index=37&type=chunk)[47](index=47&type=chunk) [Revenue and Segment Reporting](index=6&type=section&id=Revenue%20and%20Segment%20Reporting) The Group's total revenue primarily derived from copper products business, reaching RMB 6.225 billion, with network gaming contributing RMB 13.6 million, and Mainland China being the main revenue source, accounting for 85.8% of total revenue, with the Group determining it has only one operating segment based on internal financial reporting Revenue by Business Segment | Business Segment | 2022 Revenue (RMB thousands) | 2021 Revenue (RMB thousands) | | :--- | :--- | :--- | | Copper Product Related | 6,224,911 | 6,939,542 | | Network Gaming Related | 13,593 | 10,339 | | **Total** | **6,238,504** | **6,949,881** | Revenue by Geographical Region | Region | 2022 Revenue (RMB thousands) | 2021 Revenue (RMB thousands) | | :--- | :--- | :--- | | Mainland China | 5,350,135 | 6,195,644 | | Other Countries and Regions | 888,369 | 754,237 | - According to IFRS 8, the Group has determined it has only one operating segment, thus segment assets and liabilities are not presented[54](index=54&type=chunk)[68](index=68&type=chunk) [Key Income Statement Items](index=8&type=section&id=Key%20Income%20Statement%20Items) In 2022, other income increased to RMB 40.85 million, mainly due to higher government grants and derivative financial instrument gains, while other expenses significantly decreased to RMB 1.34 million due to large derivative financial instrument losses in 2021, and net finance income shifted from a net cost of RMB 14.55 million in 2021 to a net income of RMB 17.12 million, primarily benefiting from increased interest income and foreign exchange gains - Other income increased from **RMB 15.41 million** to **RMB 40.85 million**, primarily due to increased government grants and a net gain of **RMB 12.74 million** from derivative financial instruments[56](index=56&type=chunk) - Other expenses significantly decreased from **RMB 62.03 million** to **RMB 1.34 million**, mainly due to a net loss of **RMB 59.71 million** from derivative financial instruments recorded in 2021[73](index=73&type=chunk) - Financial position shifted from net cost to net income, primarily due to increased bank deposit interest income and net foreign exchange gains[59](index=59&type=chunk) - Research and development expenses for the year were **RMB 199.9 million**, an increase from **RMB 189.8 million** in the prior year, included in administrative expenses[77](index=77&type=chunk) [Income Tax](index=11&type=section&id=Income%20Tax) The Group's income tax expense for 2022 was RMB 32.59 million, a significant decrease from RMB 76.52 million in 2021, with the effective tax rate falling from 21.6% to 13.1%, primarily because two major subsidiaries enjoyed a 100% super deduction tax incentive for eligible R&D expenses Income Tax Expense | Item | 2022 (RMB thousands) | 2021 (RMB thousands) | | :--- | :--- | :--- | | Current Tax | 37,786 | 64,393 | | Deferred Tax | (5,195) | 12,126 | | **Total Income Tax** | **32,591** | **76,519** | - The decrease in effective tax rate was primarily due to tax incentives for R&D expense super deduction enjoyed by major subsidiaries[172](index=172&type=chunk) [Earnings Per Share (EPS)](index=12&type=section&id=Earnings%20Per%20Share%20(EPS)) Basic and diluted earnings per share for 2022 were both RMB 0.24, lower than RMB 0.32 in 2021, primarily reflecting the decrease in profit attributable to ordinary equity holders of the Company Earnings Per Share Calculation | Item | 2022 | 2021 | | :--- | :--- | :--- | | Profit Attributable to Ordinary Equity Holders of the Company (RMB thousands) | 216,607 | 276,977 | | Weighted Average Number of Ordinary Shares in Issue (shares) | 891,143,672 | 852,683,874 | | **Basic Earnings Per Share (RMB)** | **0.24** | **0.32** | [Key Balance Sheet Items](index=13&type=section&id=Key%20Balance%20Sheet%20Items) At the end of 2022, the Group's inventory book value was RMB 1.229 billion, trade and other receivables increased to RMB 547 million, total interest-bearing borrowings were RMB 863 million, of which RMB 745 million were repayable within one year, and trade and other payables significantly increased to RMB 1.457 billion Key Balance Sheet Figures | Item | December 31, 2022 (RMB thousands) | December 31, 2021 (RMB thousands) | | :--- | :--- | :--- | | Inventories | 1,229,301 | 1,217,711 | | Trade and Other Receivables | 546,898 | 461,169 | | Interest-bearing Borrowings | 862,789 | 862,787 | | Trade and Other Payables | 1,456,706 | 1,062,213 | - At the end of 2022, inventories with a book value totaling **RMB 330 million** and bills receivable of **RMB 2.5 million** were pledged as collateral for bank loans[98](index=98&type=chunk)[100](index=100&type=chunk) [Equity-settled Share-based Transactions](index=19&type=section&id=Equity-settled%20Share-based%20Transactions) The Group incentivizes employees through a share award scheme, with the trustee purchasing 9.701 million company shares and transferring 5.45 million vested shares to directors and employees in 2022, and the Group recognized RMB 4.916 million in employee service costs for the year Share Award Scheme Share Movement | Share Award Scheme Held Shares Movement | Number of Shares | | :--- | :--- | | As at December 31, 2021 | 5,450,000 | | Vested and transferred during the year | (5,450,000) | | **As at December 31, 2022** | **–** | - In 2022, the trustee purchased a total of **9,701,000** shares of the Company on the Stock Exchange under the share award scheme for a total consideration of **HKD 11,174,000**[17](index=17&type=chunk) - Employee service costs of **RMB 4,916,000** were recognized in the consolidated income statement for the year 2022[128](index=128&type=chunk) [Management Discussion & Analysis](index=22&type=section&id=Management%20Discussion%20%26%20Analysis) [Overall Business Review](index=22&type=section&id=Overall%20Business%20Review) In 2022, facing slowing global economic demand and copper price volatility, the Group's total revenue decreased by 10.2% year-on-year to RMB 6.239 billion, and profit attributable to shareholders decreased by 21.8% to RMB 217 million Key Financial Indicators | Financial Indicator | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Total Revenue (RMB millions) | 6,238.5 | 6,949.9 | -10.2% | | Profit Attributable to Shareholders (RMB millions) | 216.6 | 277.0 | -21.8% | [Copper Processing Business](index=22&type=section&id=Copper%20Processing%20Business) As a core business, copper processing faced market downturn pressure in 2022, with revenue decreasing by 10.3% year-on-year to RMB 6.225 billion and sales volume declining by 14.1%, leading the Group to optimize supply chains, enhance production efficiency, and explore new product application areas like new energy vehicles to address challenges Copper Processing Business Indicators | Copper Processing Business Indicator | 2022 | 2021 | Change | | :--- | :--- | :--- | :--- | | Revenue (RMB millions) | 6,224.9 | 6,939.5 | -10.3% | | Sales Volume (tons) | 139,307 | 162,158 | -14.1% | - The Group actively responded to market challenges by implementing multiple measures, including: - Optimizing procurement supply chain, increasing recycled copper imports to reduce costs[134](index=134&type=chunk) - Enhancing on-site production management, implementing a self-management production system[135](index=135&type=chunk) - Intensifying customer visits, exploring new clients[136](index=136&type=chunk) - Successfully entering the new energy vehicle material application field, achieving significant order growth[136](index=136&type=chunk) [Gaming Business](index=25&type=section&id=Gaming%20Business) The Group's network gaming business performed well in 2022, with revenue increasing by 30.8% year-on-year to RMB 13.6 million and net loss significantly narrowing by 92.9% to RMB 0.2 million, primarily due to the launch of two new game products during the year Gaming Business Indicators | Gaming Business Indicator | 2022 (RMB millions) | 2021 (RMB millions) | Change | | :--- | :--- | :--- | :--- | | Revenue | 13.6 | 10.4 | +30.8% | | Net Loss | (0.2) | (2.8) | -92.9% | [Financial Review](index=26&type=section&id=Financial%20Review) This section details financial performance, with revenue and gross profit decline primarily due to reduced copper product sales, administrative expenses rising due to increased R&D investment, other income increasing and other expenses significantly decreasing mainly related to derivative financial instruments, and improved net finance income and lower effective tax rate being positive aspects of the annual financials - Gross profit decreased by **25.6%**, mainly due to reduced sales volume of copper products[168](index=168&type=chunk) - Administrative expenses increased by **RMB 20.1 million**, primarily due to increased R&D expenses[153](index=153&type=chunk) - Other expenses decreased by **RMB 60.7 million**, mainly because a net loss of **RMB 59.7 million** from derivative financial instruments was recorded in 2021[151](index=151&type=chunk) - Financial position shifted from net cost to net income, primarily due to increased bank deposit interest income and net foreign exchange gains[178](index=178&type=chunk) [Liquidity and Financial Resources](index=27&type=section&id=Liquidity%20and%20Financial%20Resources) The Group maintained strong liquidity, recording net current assets of RMB 903 million at the end of 2022, possessing sufficient bank credit facilities and cash reserves, with a gearing ratio of 33.0%, consistent with the prior year, indicating a stable financial structure - At the end of 2022, the Group had available but undrawn bank credit facilities of **RMB 1.3997 billion** and bank balances and cash totaling **RMB 1.3487 billion**[157](index=157&type=chunk) - Gearing ratio (calculated as net debt divided by total capital) was **33.0%**, largely consistent with **33.9%** in 2021[175](index=175&type=chunk) [Other Information](index=28&type=section&id=Other%20Information) [Capital Commitments and Expenditures](index=28&type=section&id=Capital%20Commitments%20and%20Expenditures) At the end of 2022, the Group's contracted but unprovided capital expenditures were approximately RMB 451 million, primarily for plant construction and capacity expansion in the copper processing business, and during the year, the Group invested RMB 134 million in purchasing property, plant, and equipment - As of December 31, 2022, the Group's future capital expenditure commitments were approximately **RMB 450.5 million**[1](index=1&type=chunk) - For the year ended December 31, 2022, the Group invested **RMB 134.1 million** in purchasing property, plant and equipment[21](index=21&type=chunk) [Employee and Environmental Policies](index=29&type=section&id=Employee%20and%20Environmental%20Policies) As of the end of 2022, the Group had 1,457 employees, regularly reviews remuneration policies, provides competitive benefits, and offers annual training programs, while in environmental aspects, the Group promotes resource recycling and strictly requires suppliers to comply with environmental regulations - As of December 31, 2022, the Group had **1,457** employees, with **1,405** in copper business and **52** in network gaming business[15](index=15&type=chunk) - The Group emphasizes environmental protection and energy conservation, establishing recycling workshops for resource recovery and strictly complying with relevant laws and regulations in China, Cayman Islands, and Hong Kong[16](index=16&type=chunk) [Corporate Governance and Compliance](index=30&type=section&id=Corporate%20Governance%20and%20Compliance) During the reporting period, the company consistently complied with the Corporate Governance Code and the Model Code for Securities Transactions by Directors of Listed Issuers, with the audit committee reviewing the annual financial statements, and the company also maintained sufficient public float - All directors confirmed compliance with the Model Code for Securities Transactions by Directors during the year[5](index=5&type=chunk) - The Company has complied with the code provisions in the Corporate Governance Code throughout the year[6](index=6&type=chunk) - The audit committee, comprising three independent non-executive directors, has reviewed the annual audited financial statements[8](index=8&type=chunk) [Dividends and Shareholder Information](index=31&type=section&id=Dividends%20and%20Shareholder%20Information) The Board does not recommend a final dividend for the year ended December 31, 2022, and to determine eligibility for attending the Annual General Meeting, share transfer registration will be suspended from June 13 to 16, 2023 - The Board does not recommend the payment of a final dividend for the year ended December 31, 2022[11](index=11&type=chunk) - To determine eligibility for attending the Annual General Meeting, the Company will suspend share transfer registration from June 13 to 16, 2023[18](index=18&type=chunk)

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 3,222,331 thousand, a slight increase of 1.7% compared to RMB 3,167,835 thousand in the same period of 2021[9] - Gross profit decreased to RMB 275,928 thousand, down 37.0% from RMB 438,863 thousand year-on-year[9] - Operating profit for the period was RMB 139,077 thousand, a decrease of 36.5% compared to RMB 219,137 thousand in the previous year[9] - Net profit attributable to equity shareholders was RMB 119,447 thousand, down 26.2% from RMB 162,138 thousand in the same period last year[9] - Basic earnings per share decreased to RMB 13.36, compared to RMB 19.94 in the previous year, reflecting a decline of 32.9%[9] - The company reported a total comprehensive income of RMB 121,736 thousand for the period, down from RMB 162,118 thousand in the previous year[12] - The company’s net profit attributable to shareholders decreased to RMB 119.4 million, down RMB 42.7 million from RMB 162.1 million in the same period last year[128] Assets and Liabilities - Total assets as of June 30, 2022, amounted to RMB 3,075,149 thousand, an increase from RMB 2,605,024 thousand as of December 31, 2021[15] - Current assets increased to RMB 996,471 thousand from RMB 967,917 thousand year-on-year[15] - Total liabilities increased to RMB 2,240,444 thousand, compared to RMB 1,918,608 thousand at the end of 2021[15] - The company’s total equity attributable to shareholders was RMB 1,390,779 thousand as of June 30, 2022, compared to RMB 1,393,175 thousand at the same time in 2021, showing a slight decrease of about 0.2%[22] Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2022, was RMB 212,108 thousand, a significant improvement compared to a cash outflow of RMB 120,413 thousand in the same period of 2021[26] - The company reported a net increase in cash and cash equivalents of RMB 419,982 thousand for the six months ended June 30, 2022, compared to an increase of RMB 124,768 thousand in the prior year[26] - The company invested RMB 52,804 thousand in the purchase of property, plant, and equipment during the six months ended June 30, 2022, down from RMB 67,608 thousand in the same period of 2021, reflecting a reduction of approximately 22%[26] - The company’s financing activities generated a net cash inflow of RMB 252,845 thousand for the six months ended June 30, 2022, compared to RMB 316,182 thousand in the previous year, indicating a decrease of about 20%[26] Revenue Breakdown - Revenue from copper-related products reached RMB 3,037,965,000, an increase from RMB 2,978,349,000 in the previous year, representing a growth of 2.0%[38] - Revenue from online gaming was RMB 3,218,025,000, down from RMB 5,956,000,000, indicating a decline of 46.0%[38] - The company’s total revenue for the six months ended June 30, 2022, was RMB 354,133 thousand, a decrease from RMB 697,943 thousand in the previous year, indicating a decline of about 49%[26] Inventory and Receivables - The cost of inventory for the period was RMB 2,945,004,000, compared to RMB 2,727,108,000, representing an increase of 8.0%[47] - As of June 30, 2022, the total inventory amounted to RMB 2,119,300,000, a decrease from RMB 2,217,505,000 as of December 31, 2021, representing a reduction of approximately 4.4%[58] - The net trade receivables and notes receivable as of June 30, 2022, were RMB 359,491,000, down from RMB 402,205,000 as of December 31, 2021, indicating a decline of about 10.6%[60] Shareholder Information - The company did not declare or distribute any dividends for the period ending June 30, 2022, as per the board's decision[79] - As of June 30, 2022, the total number of issued ordinary shares was 5,000,000,000, with a corresponding amount of HKD 500,000,000[80] - The group held 22,522,000 shares under the share incentive plan as of June 30, 2022, with a total cost of HKD 21,882,000 (approximately RMB 18,419,000)[93] Research and Development - Research and development expenses amounted to RMB 105,836,000, up from RMB 86,451,000, marking an increase of 22.4%[47] - The effective tax rate for the group decreased to 11% from 22% in the previous year, primarily due to tax benefits from qualified R&D expenses[51] Market and Business Strategy - The company continues to explore market expansion opportunities and new product development strategies to enhance future growth prospects[12] - The company continues to focus on the manufacturing and sales of high-precision copper strips and the development and operation of online games, indicating ongoing commitment to its core business areas[29] Employee and Governance - The group employed a total of 1,464 employees as of June 30, 2022, an increase from 1,449 employees on December 31, 2021[141] - The board confirmed compliance with the corporate governance code during the review period[170]

Financial Performance - The total revenue for the year 2021 reached RMB 6,949.9 million, an increase of 53.3% compared to RMB 4,534.9 million in 2020[14]. - The profit attributable to shareholders was RMB 277.0 million, representing an 83.7% year-on-year growth from RMB 150.8 million in 2020[14]. - The group reported a gross profit of RMB 790.5 million for 2021, up 47.2% from the previous year, primarily due to increased copper product sales[33]. - Other income decreased to RMB 15.4 million, down RMB 9.6 million from the previous year, mainly due to reduced government subsidies[34]. - Administrative expenses rose to RMB 314.0 million, an increase of RMB 71.8 million from RMB 242.2 million in 2020, attributed to higher R&D and employee costs[37]. - The company reported a significant increase in high-precision copper strip revenue to RMB 6,447.0 million, a 52.4% increase from RMB 4,229.3 million in the previous year[21]. - The copper business generated revenue of RMB 6,939.5 million, driven by an 18.8% increase in copper product sales, totaling 162,158 tons sold[33]. Production and Sales - The group achieved a production and sales volume of 156,000 tons, marking a significant milestone in its development history[10]. - In 2021, the company's copper processing business achieved revenue of RMB 6,939.5 million, an increase of 53.5% year-on-year, with sales volume reaching 162,158 tons, up 18.8% from the previous year[21]. - The company plans to achieve a production and sales target of 200,000 tons in 2022, building on the momentum from 2021[27]. - The company expanded its customer base by acquiring 30 new clients in 2021, with 4 to 5 of these clients identified as having significant potential[22]. - The company’s copper strip consumption in China reached 2.7 million tons in 2021, reflecting a year-on-year growth of 17.0%[17]. - The company’s capacity utilization rate for copper strip processing was 74% in 2021, an increase of 7.6% year-on-year[17]. Market Conditions - The average LME copper price fluctuated between USD 7,700 and USD 10,750 per ton during 2021, with a closing price of USD 9,755 per ton at the end of the year, up 25.81% from the previous year[15]. - The SHFE three-month copper price reached a peak of RMB 78,270 per ton on May 10, 2021, the highest since 2006, and closed at RMB 70,380 per ton at the end of the year, an increase of 21.87% year-on-year[15]. - The group benefited from increased domestic orders due to reduced production in international peers, maintaining a supply-demand imbalance in the copper processing industry[10]. Strategic Initiatives - The company emphasized innovation and cost reduction as key strategies for development in 2021[9]. - The company plans to face external challenges in 2022, including geopolitical tensions and trade frictions, while continuing to pursue its vision of becoming a century-old enterprise and a world-class company[11]. - The company is actively pursuing the construction of new facilities and the introduction of advanced equipment to enhance production capacity[23]. Corporate Governance - The board of directors held a total of five meetings during the year, with all directors attending all meetings, ensuring high levels of accountability and governance[68]. - The company emphasizes strict compliance with environmental regulations and has established a recycling workshop to minimize environmental impact[58]. - The board is committed to maintaining high standards of corporate governance, which is considered key to the company's success[61]. - The company has adopted the Corporate Governance Code and has complied with its provisions throughout the year[62]. - The board's main responsibilities include formulating long-term strategies, approving business plans, and monitoring risk management[67]. - The company has a clear written authority framework for management to report to the board on daily operations[67]. - The company ensures that shareholder interests are prioritized, especially in cases of conflict with other interests[70]. Environmental, Social, and Governance (ESG) Initiatives - The company has established an ESG management strategy that includes compliance, environmental sustainability, employee welfare, customer satisfaction, and social responsibility[144]. - The company is committed to enhancing communication with stakeholders and ensuring effective ESG risk management systems[141]. - The board of directors is responsible for overseeing and evaluating the effectiveness of the ESG governance framework[140]. - The company aims to reduce unit water consumption by 40% by 2025 compared to 2018 levels[155]. - The company targets a 50% reduction in unit greenhouse gas emissions by 2025 compared to 2018 levels[155]. - The company plans to decrease the generation of non-hazardous waste per unit product by 30% by 2025 compared to 2019 levels[155]. - The company aims for a 15% reduction in hazardous waste generation per unit product by 2025 compared to 2018 levels[155]. - The company targets a 20% reduction in comprehensive energy consumption per unit product by 2025 compared to 2015 levels[155]. Employee and Talent Management - The company had 1,449 employees as of December 31, 2021, with 1,391 in the copper business and 58 in the online gaming business[53]. - The company is committed to recruiting, retaining, and motivating talented employees to enhance achievements and create value for shareholders[94]. - The company actively collaborates with Central South University to enhance talent development in materials science[159]. Product Development and Innovation - In 2021, the company successfully developed new copper products K24 and K40, contributing to industry advancement and providing higher quality material options[164]. - The K24 copper product achieved a conductivity rate of over 90% and demonstrated excellent high-temperature resistance, enhancing efficiency for 5G applications[165]. - The sales volume of new products K36 and K40 reached 1,000 tons in 2021, generating significant economic benefits for the company[165]. - The company participated in the completion of the national standard for copper and copper alloy foil materials, contributing to industry progress[168]. - The company has made significant breakthroughs in copper-iron alloy CFA95, filling a domestic gap and receiving preliminary recognition from Japan[165]. Risk Management - The company’s risk management and internal control systems are designed to provide reasonable assurance against material misstatements or losses[105]. - The company has established a department responsible for risk monitoring and internal auditing, with quarterly audits conducted to ensure effective risk management[110]. - The board reviewed the effectiveness of the risk management and internal control systems and deemed them effective and complete[111].

Xingye Alloy Materials Group Limited Interim Report 2021 中期報告 興業合金材料集團有限公司 INTERIM REPORT 2021 Xingye Alloy Materials Group Limited 興業合金材料集團有限公司 (formerly known as Huan Yue Interactive Holdings Limited) (incorporated in the Cayman Islands with limited liability) Stock Code : 00505 中期報告 2021 Xingye Alloy Materials Group Limited 興業合金材料集團有限公司 公司資料 1 興業合金材料集團有限公司 | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|--------------------------| | | | | | | | | ...

年度報告 ANNUAL REPORT 2020 2020 (incorporated in the Cayman Islands with limited liability) Stock Code : 00505 Xingye Alloy Materials Group Limited 興業合金材料集團有限公司 (formerly known as Huan Yue Interactive Holdings Limited) Xingye Alloy Materials Group Limited 興業合金材料集團有限公司 年度報告 Annual Report 2020 興業合金材料集團有限公司 Xingye Alloy Materials Group Limited 目錄 | --- | --- | |-------|--------------------------| | | | | | 公司資料 | | | 主席報告書 | | | 管理層討論與分析 | | 15 | 企業管治報告 | | 28 | 環境、社會及管治報告 | | 97 | 董事會報告 | | 113 | 董事簡歷詳情 | | 115 ...

Xingye Alloy Materials Group Limited | --- | --- | |-----------------------------------------------------------|--------------------------------------| | | Xingye Alloy Materials Group Limited | | | | | 興業合金材料集團有限公司 | | | (formerly known as Huan Yue Interactive Holdings Limited) | | (incorporated in the Cayman Islands with limited liability) Stock Code : 00505 Interim Report 2020 中期報告 興業合金材料集團有限公司 2020 Xingye Alloy Materials Group Limited 興業合金材料集團有限公司 2020 中期報告 Interim Report 目錄 | --- | --- | --- | --- | |- ...

歡 Annual Report Huan Yue Interactive Holdings Limited Huan Yue Interactive Holdings Limited 歡 互娛控股有限 公 司 互娛控股有限 公 司 (incorporated in the Cayman Islands with limited liability) Stock Code : 00505 2019 年度報告 Huan Yue Interactive Holdings Limited 歡 互娛控股有限 公 司 （於開曼群島註冊成立之有限公司） 股份代號： 00505 目錄 2 公司資料 4 主席報告書 6 管理層討論與分析 16 企業管治報告 29 環境、社會及管治報告 73 董事會報告 89 董事簡歷詳情 91 獨立核數師報告書 97 綜合損益表 98 綜合損益及其他全面收益表 99 綜合財務狀況表 101 綜合權益變動表 103 綜合現金流量表 105 財務報表附註 199 五年財務資料概要 公司資料 | --- | --- | |--------------------------------------- ...

2019 中期報告 Huan Yue Interactive Holdings Limited 歡 倪 互 娛 控 股 有 限 公 司 (於開曼群島註冊成立之有限公司) 股份代號： 00505 目錄 2 公司資料 4 綜合損益表 5 綜合損益及其他全面收益表 6 綜合財務狀況表 8 綜合權益變動表 10 簡明綜合現金流量表 11 未經審核中期財務報告附註 41 管理層討論與分析 49 其他資料 公司資料 | --- | --- | --- | |-------|---------------------------------------------|-------------------------------------| | | | | | | 董事會 | 公司秘書 | | | 執行董事 | 梅雅美女士 | | | 胡長源先生 （主席） 胡明烈先生 （行政總裁） | 授權代表 | | 任 | 灝先生 朱文俊先生 | 朱文俊先生 梅雅美女士 | | | 非執行董事 | 主要法律顧問 | | | 戴建春先生 | 中國，香港 | | | 獨立非執行董事 柴朝明先生 | 中倫律師事務所 | | 魯 | 樓棟博士 ...

年 度 2018 Huan Yue Interactive Holdings Limited 歡 互娛控股有限 公 司 報告 （於開曼群島註冊成立之有限公司） 股份代號： 00505 目錄 | --- | --- | |-------|--------------------------| | | | | | 公司資料 | | | 主席報告書 | | | 管理層討論與分析 | | 14 | 企業管治報告 | | 27 | 環境、社會及管治報告 | | 69 | 董事會報告 | | 83 | 董事簡歷詳情 | | 85 | 獨立核數師報告書 | | 92 | 綜合損益表 | | 93 | 綜合損益及其他全面收益表 | | 94 | 綜合財務狀況表 | | 96 | 綜合權益變動表 | | 98 | 綜合現金流量表 | | 100 | 財務報表附註 | | 187 | 五年財務資料概要 | 公司資料 柴朝明先生（主席） 戴建春先生 魯 紅女士 樓 棟博士 任 灝先生 董事會 執行董事 胡長源先生（主席） 胡明烈先生（行政總裁） 任 灝先生 朱文俊先生 非執行董事 戴建春先生 獨立非執行董事 柴朝明先生 樓 棟博士 ...