Revenue Performance - For the six months ended June 30, 2021, the total revenue was RMB 490.8 million, a decrease of 28.6% compared to RMB 687.7 million for the same period in 2020[8]. - The revenue from the power distribution sector was RMB 303.4 million, down 31.8% from RMB 444.6 million in the previous year[10]. - The flexible DC transmission revenue was RMB 197.4 million, a decrease of 38.9% from RMB 323.0 million in the previous year[10]. - Revenue from ultra-high voltage direct current projects fell by 45.4% compared to the same period in 2020, significantly impacting overall income[11]. - Revenue from flexible direct current projects decreased by 38.9% year-on-year, reflecting a notable decline in project scale[12]. - The electrified transportation sector reported a revenue of RMB 18.2 million, down 75.7% compared to RMB 75.0 million in the same period of 2020[14]. - Revenue from the industrial and other sectors remained relatively stable, with a slight increase of 0.7% to RMB 169.2 million[17]. - The company achieved a 104.5% increase in revenue from other power distribution and transmission sectors, driven by strong performance in online monitoring products and power capacitors[13]. - Revenue from sales of electronic power components decreased by 25% to RMB 490,784,000 for the six months ended June 30, 2021, compared to RMB 687,728,000 in 2020[87]. - 98% of the group's revenue is derived from customer contracts related to the sale of electronic power components in mainland China, up from 97% in 2020[88]. Profitability and Losses - The gross profit margin for the overall business was 25.8%, compared to 30.3% in the same period last year[8]. - Gross profit decreased by approximately 39.2% from RMB 208.6 million to RMB 126.8 million, with the gross margin declining from 30.3% to 25.8% due to a decrease in high-margin product sales and rising raw material costs[26]. - The company recorded a loss before tax of RMB (8,207,000) compared to a profit of RMB 95,561,000 in the previous year, reflecting a significant decline in profitability[73]. - The net loss for the period was RMB (12,713,000), contrasting with a profit of RMB 86,208,000 in the prior year, marking a year-over-year decrease of approximately 114.7%[73]. - The total comprehensive loss attributable to equity holders of the parent for the six months ended June 30, 2021, was approximately RMB 11.0 million, compared to a total comprehensive income of approximately RMB 91.7 million for the same period in 2020[37]. - The basic loss per share for the six months ended June 30, 2021, was RMB (10,957,000), compared to a profit of RMB 91,650,000 in 2020[95]. Research and Development - Research and development costs increased by approximately 16.0% to RMB 41.3 million, primarily due to increased expenses related to semiconductor development[30]. - The company is focusing on technological innovation as the primary driver for development, particularly in the fields of power semiconductors and advanced power electronics technology[5]. - The company launched its first IGBT production line, which is fully automated and designed for high efficiency and quality control[19]. - The newly developed impedance measurement products have secured orders in the European shipbuilding sector, indicating successful market expansion[20]. Financial Position and Cash Flow - As of June 30, 2021, the group's cash and cash equivalents were approximately RMB 561.7 million, down from approximately RMB 678.4 million as of December 31, 2020[39]. - The group's current ratio as of June 30, 2021, was approximately 2.8, compared to 3.0 as of December 31, 2020[39]. - The company reported a decrease in cash flow from operating activities before tax, which was RMB (8,207,000) for the first half of 2021, compared to RMB 95,561,000 in 2020[80]. - The net cash flow from operating activities for the six months ended June 30, 2021, was RMB 239,045 thousand, a significant improvement from a net outflow of RMB 52,265 thousand in the same period of 2020[81]. - The company incurred RMB 100,968 thousand in capital expenditures for property, plant, and equipment, a substantial increase from RMB 12,626 thousand in the prior year[81]. - The company raised RMB 205,000 thousand in new bank loans, while repaying RMB 276,775 thousand, resulting in a net cash outflow from financing activities of RMB 69,349 thousand[81]. Share Capital and Ownership - As of June 30, 2021, the company had issued 1,636,001,500 shares[57]. - Mr. Xiang Jie holds 381,958,347 shares, representing approximately 23.35% of the company's equity[56]. - Major shareholder Max Vision Holdings Limited owns 338,328,347 shares, accounting for 20.68% of the company's equity[59]. - China Hi-Tech Holding Company Ltd. holds 300,000,000 shares, representing 18.34% of the company's equity[59]. - The company has a stock option plan that allows for the issuance of up to 136,604,000 shares, representing approximately 8.35% of the total shares issued as of June 30, 2021[64]. Corporate Governance - The audit committee reviewed the accounting principles and practices adopted by the group and discussed audit, risk management, and internal control systems[49]. - The remuneration committee evaluates the performance of senior management and determines their compensation structure[50]. - The investment committee is responsible for advising the board on investments in fixed assets, equity, debt, and financial securities[52]. - The nomination committee reviews the board's structure and identifies qualified candidates for directorship[51]. - The company emphasizes the importance of corporate culture and regularly organizes activities to enhance team cohesion[54]. Market and Strategic Initiatives - The company launched its second module product, EV-Type, and completed the production line for IGBT module packaging testing[6]. - The company’s online monitoring for smart grids will participate in the power assurance project for the Winter Olympics[6]. - The high voltage direct current transmission sector is expected to maintain a high level of investment and construction during the 14th Five-Year Plan period, with an additional transmission capacity of 56 million kilowatts[10]. - The group aims to maintain its leading position in the high-voltage direct current transmission sector, with multiple projects initiated in 2021, including the Baihetan-Jiangsu and Baihetan-Zhejiang projects[44].

Technology and Innovation - The company launched its first self-developed IGBT chip product, the i20 series 1200V/200A, and the ED-Type series 1200V/600A IGBT module products, achieving international first-class performance[3] - The company aims to strengthen its leading position in the industry by focusing on technological innovation and enhancing product quality control, sales, and service management[3] - The company is committed to the dual energy strategies of "clean substitution and electric substitution," which are driving significant demand growth for power semiconductor device technology and innovative system integration technology[3] - The company emphasizes technology innovation as a key driver for development, with multiple successful R&D projects in 2020[18] - The company has achieved remarkable progress in its existing business, providing solid support for new technology R&D and new business development[3] Financial Performance - The total revenue for 2020 was RMB 1,215.8 million, a decrease of 12.9% from RMB 1,395.6 million in 2019, with an average gross margin of 34%[5] - Revenue decreased by approximately 12.9% from RMB 1,395.6 million for the year ended December 31, 2019, to approximately RMB 1,215.8 million for the year ended December 31, 2020, primarily due to a decline in sales of flexible DC transmission and the exclusion of Jiujiang Saijing from the consolidation scope after its sale in 2019[23] - Gross profit decreased by approximately 2.4% from RMB 423.8 million for the year ended December 31, 2019, to approximately RMB 413.7 million for the year ended December 31, 2020, attributed to the decrease in revenue[25] - The total comprehensive income attributable to equity holders of the parent decreased by approximately 9.6% from RMB 196.3 million for the year ended December 31, 2019, to approximately RMB 177.5 million for the year ended December 31, 2020, mainly due to the decline in revenue and the decrease in gains from the sale of Jiujiang Saijing shares[33] - The company reported a net profit of RMB 174,731 thousand, a decline of 12.6% compared to RMB 200,028 thousand in 2019[178] Revenue Breakdown - The revenue from the power distribution sector was RMB 756.1 million, down 12% from RMB 861.6 million in 2019, while the revenue from UHVDC transmission increased by 182% to RMB 288.1 million[8] - The electrified transportation sector generated revenue of RMB 131.9 million, a 28% increase from RMB 102.8 million in 2019, primarily driven by a 39% increase in rail transit vehicle revenue[12] - The industrial and other sectors saw revenue decline to RMB 327.8 million, a 24% decrease from RMB 431.2 million in 2019, with significant drops in metal smelting revenue by 75%[16] Corporate Governance - The board consists of three executive directors, three non-executive directors, and four independent non-executive directors, with independent non-executive directors making up 40% of the board[57] - The company has established four committees (Audit, Remuneration, Nomination, and Investment) to oversee various aspects of the group's affairs[63] - The company has complied with all applicable provisions of the corporate governance code during the year ended December 31, 2020[56] - The company has a policy in place for directors to declare any potential conflicts of interest[57] - The company has established a formal and transparent process for the selection and appointment of directors to ensure diversity and expertise[70] Environmental Responsibility - The company’s CO2 emissions in 2020 were 214 tons for direct emissions and 8,138 tons for indirect emissions, compared to 261 tons and 7,984 tons in 2019, respectively[93] - The company reduced sulfur oxide emissions by approximately 52.94%, from about 595 kg in 2019 to approximately 280 kg in 2020[92] - The total water usage in 2020 was 105,944 tons, a significant decrease from 340,532 tons in 2019[95] - The company achieved a 54.39% reduction in particulate matter emissions, decreasing from about 57 kg in 2019 to approximately 26 kg in 2020[92] - The company has obtained environmental management system certification, promoting sustainable development and environmental management practices[97] Employee and Talent Management - The company has a total of 620 employees as of December 31, 2020, with a gender composition of 60% male and 40% female[101] - Employee age distribution shows that 65% are 35 years or younger, 26% are between 36-45 years, 7% are between 46-55 years, and 2% are 56 years or older[100] - The company invested over RMB 240,000 in small-scale internal training and external training for employees in 2020 due to the impact of the COVID-19 pandemic[106] - The company actively recruits international talent to align with its global strategy, establishing research and development teams in Switzerland and Germany[101] - The company has established a comprehensive employee benefits system, including various subsidies, work lunches, employee travel, birthday celebrations, and health check-ups[101] Social Responsibility - The company actively contributed to pandemic relief efforts, demonstrating its corporate social responsibility[3] - In 2020, the group donated RMB 10 million to the Wuhan Red Cross Society and provided various protective equipment to hospitals and organizations to contribute to the fight against COVID-19[112] - The group actively participates in social welfare activities, providing medical assistance to disadvantaged employees and funding university students[113] Risk Management - The group faces market interest rate risk primarily related to its floating-rate bank borrowings, and it has entered into forward currency contracts to manage foreign exchange risks[115][116] - The company faced risks related to inventory obsolescence and excess due to technological innovation, which impacted the assessment of inventory provisions[169] - The audit procedures included inventory counts and age analysis to evaluate the condition and turnover of inventory, ensuring accurate financial reporting[169] Shareholder Information - The board proposed a final dividend of HKD 0.03 per share for the year ended December 31, 2020, maintaining the same dividend as in 2019[117] - Shareholders holding at least 10% of the paid-up capital can request a special general meeting within two months of submission[85] - The company’s share premium account also stood at approximately RMB 447.1 million as of December 31, 2020, unchanged from the previous year[127] Audit and Compliance - The independent auditor's report confirms that the consolidated financial statements reflect the company's financial position as of December 31, 2020, in accordance with International Financial Reporting Standards[163] - Key audit matters include the impairment testing of goodwill and trademarks, which involves significant management judgment and estimates[167] - The audit committee assisted the board in overseeing the financial reporting process, ensuring compliance with relevant regulations and standards[171]

Revenue and Profitability - The total revenue for the six months ended June 30, 2020, was RMB 687.7 million, representing an increase of 9.6% compared to RMB 627.4 million for the same period in 2019[8]. - The revenue from the power distribution segment was RMB 444.6 million, up 18% from RMB 377.2 million in the previous year, with a gross margin of 31.8%[9]. - The revenue from the ultra-high voltage direct current transmission segment increased by 94% to RMB 95.2 million, while the flexible direct current transmission segment grew by 16% to RMB 323.0 million[10]. - Revenue in the electrified transportation sector rose by 48% to RMB 75.0 million in the first half of 2020, compared to RMB 50.7 million in the same period of 2019[12]. - Revenue from rail transportation vehicles increased by 57% to RMB 71.4 million in the first half of 2020, driven by strong performance in freight high-power electric locomotives and passenger vehicles[13]. - The group's revenue increased by approximately 9.6% from RMB 627.4 million in the first half of 2019 to approximately RMB 687.7 million in the first half of 2020, primarily due to increased income from UHVDC and flexible DC transmission projects[17]. - The group's gross profit rose by approximately 6.9% from RMB 195.0 million in the first half of 2019 to approximately RMB 208.6 million in the first half of 2020, due to a higher proportion of high-margin businesses[19]. - The net profit attributable to the parent company was RMB 86,208,000, a decrease of 26.3% from RMB 116,909,000 in the prior year[73]. - For the six months ended June 30, 2020, the group reported a profit attributable to equity holders of the parent of RMB 91,650,000, a decrease of 19% from RMB 113,028,000 for the same period in 2019[97]. Financial Position - As of June 30, 2020, the company's cash and cash equivalents were approximately RMB 534.8 million, down from RMB 592.7 million as of December 31, 2019, while interest-bearing bank borrowings increased slightly to RMB 474.4 million from RMB 471.8 million[30]. - The current ratio remained stable at approximately 2.4 as of June 30, 2020, consistent with December 31, 2019[30]. - The company’s capital debt ratio was approximately 27.8% as of June 30, 2020, compared to 26.8% at the end of 2019[30]. - The total assets as of June 30, 2020, were RMB 2,534,376,000, compared to RMB 2,566,331,000 as of December 31, 2019[75]. - The total equity attributable to shareholders reached RMB 1,694,646,000 as of June 30, 2020, up from RMB 1,671,940,000 at the end of 2019, indicating an increase of about 1.4%[79]. - The company's retained earnings as of June 30, 2020, were RMB 744,580,000, an increase from RMB 671,397,000 at the end of 2019, representing a growth of about 10.9%[79]. - The total issued share capital was RMB 139,878,000 as of June 30, 2020, compared to RMB 138,637,000 at the beginning of 2019, reflecting an increase of approximately 0.9%[79]. - The group’s total financial assets, including accounts receivable and derivative financial instruments, had a fair value of RMB 220,665,000 as of June 30, 2020, compared to RMB 207,852,000 as of December 31, 2019[114]. Costs and Expenses - The average gross margin for the group was 30.3%, slightly down from 31.1% in the previous year[8]. - Other income and gains significantly decreased by approximately 79.6% from RMB 99.2 million in the first half of 2019 to approximately RMB 20.3 million in the first half of 2020, primarily due to the absence of gains from the sale of a 43% stake in Jiujiang Saijing[20]. - The group recorded a pre-tax profit of approximately RMB 95.6 million in the first half of 2020, a decrease of approximately 35.8% from RMB 148.8 million in the same period of 2019, largely due to the absence of gains from the sale of Jiujiang Saijing[26]. - The group reported a total interest income of RMB 726,000 for the period, compared to RMB 1,348,000 for the same period in 2019, indicating a decline of 46.2%[111]. - The company incurred a loss of RMB 5,449 thousand from foreign exchange forward contracts in 2020, compared to a gain of RMB 12,859 thousand in 2019, indicating a significant negative shift[81]. - The company reported an increase in inventory write-downs to RMB 4,930 thousand in 2020 from RMB 1,604 thousand in 2019, reflecting a rise of 207.4%[81]. Research and Development - The company plans to accelerate the development and production of IGBT products and expand market reach for innovative technologies such as solid-state switches and impedance measurement[6]. - The company plans to accelerate the development of power semiconductor technology and has made significant progress in IGBT chip production, with the first 1200V/200A IGBT chip entering the wafer stage[16]. - Research and development expenses increased to RMB 35,583,000, up 28.5% from RMB 27,698,000 in the previous year[74]. Shareholder and Corporate Governance - The management team is committed to creating greater shareholder and corporate social value moving forward[7]. - The company declared an interim dividend of HKD 0.02 per share, totaling HKD 32,616,620, compared to HKD 32,305,880 in the same period last year[29]. - The total remuneration paid to key management personnel for the six months ended June 30, 2020, was RMB 14,177,000, reflecting a 32.5% increase from RMB 10,715,000 in the same period of 2019[108]. - The company has adopted the standard code of conduct for securities trading by directors and confirmed compliance as of June 30, 2020[48]. Market and Operational Developments - Solid-state AC switches have won contracts for the UK smart grid technology demonstration project, and solid-state DC switches have received orders in the European shipping sector[6]. - The company has successfully entered the tape-out phase for its first 1200V/200A IGBT chip, with the corresponding 1200V/600A ED-Type IGBT module undergoing sample packaging tests[5]. - The company will continue to deliver on high-voltage direct current transmission projects, including "Shanbei-Wuhan" and "Qinghai-Henan," with a positive outlook for business development in the second half of 2020[38]. - The group has secured orders for solid-state DC switches from European customers for offshore wind power installation, indicating successful market expansion efforts[16]. Employee and Health Measures - The company has maintained a zero infection rate among its employees during the COVID-19 pandemic, demonstrating effective implementation of health measures[5]. - The company has actively contributed to pandemic relief efforts by donating to various hospitals and organizations in Wuhan and other regions[5]. - As of June 30, 2020, the company had 606 employees, an increase from 581 employees at the end of 2019[37].

Financial Performance - In 2019, the company achieved a revenue of RMB 1,395.6 million, representing an 8.1% increase compared to the previous year[8] - The company's gross margin decreased from 33.7% in the previous year to 30.4%, while net profit fell from RMB 210.2 million to RMB 200.0 million[8] - In 2019, the total revenue of the group reached RMB 1,395.6 million, a 8.1% increase from RMB 1,290.5 million in 2018[15] - The revenue from the power distribution segment was RMB 861.6 million, representing a 25% increase from RMB 687.0 million in 2018[21] - The flexible DC transmission revenue grew by 43% to RMB 676.6 million, while the high voltage direct current transmission revenue decreased by 28% to RMB 102.2 million[21] - The electrified transportation segment generated revenue of RMB 102.8 million, a 13% increase from RMB 91.3 million in 2018[28] - The revenue from the industrial and other segment was RMB 431.2 million, a 16% decrease from RMB 512.2 million in 2018[33] - The revenue from the new energy vehicle sector dropped by 51% to RMB 6.8 million due to reduced government subsidies[28] - Revenue increased by approximately 8.1% from about RMB 1,290.5 million in 2018 to about RMB 1,395.6 million in 2019, driven by sales growth in flexible DC transmission and rail transit vehicles[45] Research and Development - The company is advancing the IGBT project, aiming to launch the first batch of samples in the first half of 2020 and complete the first production line by the end of 2020[11] - The company has established three overseas R&D teams in Switzerland and Germany to enhance its international R&D capabilities[6] - New technologies and products launched include flexible DC transmission capacitors, circuit impedance measurement, and 5G communication busbars[6] - The company emphasized the importance of R&D in power semiconductor technology and emerging power technologies to enhance its technical strength and operational performance[39] - R&D expenses increased by approximately 15.1% from about RMB 53.7 million in 2018 to about RMB 61.8 million in 2019, reflecting higher investment in product development including IGBT[52] - The company launched advanced circuit impedance measurement technology, obtaining international invention patents applicable in various fields including new energy generation and rail transit[42] Corporate Social Responsibility - The company has committed RMB 1 million to support COVID-19 relief efforts, demonstrating its corporate social responsibility[12] - The company is committed to green and sustainable development, actively fulfilling its corporate social responsibility in energy conservation and environmental protection[131] - The company donated RMB 50,000 to the Jiaxing Charity Association in 2019 as part of its community investment initiatives[160] Governance and Compliance - The company emphasizes the importance of corporate governance and has adopted the corporate governance code as per the listing rules, ensuring compliance throughout the year ended December 31, 2019[90] - The board consists of three executive directors, three non-executive directors, and four independent non-executive directors, with independent directors making up 40% of the board[93] - The company has maintained compliance with the requirement that one-third of the board members must retire and be re-elected at the annual general meeting[93] - The company has a strong emphasis on risk management and internal control systems as part of its corporate governance practices[92] - The board regularly reviews and monitors the company's operations to maintain and improve corporate governance standards[90] - The company has established four committees: Audit, Remuneration, Nomination, and Investment, to enhance governance and oversight[101] Environmental Impact - The company has established environmental key performance indicators to disclose relevant data and information in accordance with principles of materiality, quantification, balance, and consistency[134] - The company has implemented measures to manage vehicle usage and employee travel to reduce emissions, including encouraging public transport and cycling[137] - The company has a comprehensive approach to handling pollutants generated during production, ensuring compliance with national environmental standards[138] - SOx emissions increased from 316 Kg in 2018 to 595 Kg in 2019, representing an increase of 88.6%[140] - Direct greenhouse gas emissions rose from 221 tons in 2018 to 261 tons in 2019, an increase of 18.1%[140] - Indirect greenhouse gas emissions increased from 6,560 tons in 2018 to 7,984 tons in 2019, a rise of 21.7%[140] - Water usage surged from 139,116 tons in 2018 to 340,532 tons in 2019, marking an increase of 144.5%[142] - Electricity consumption grew from 6,060,529 kWh in 2018 to 7,423,041 kWh in 2019, an increase of 22.5%[142] - The company generated 200 tons of non-hazardous waste from scrap steel, which was sold[140] - The company implemented a paperless office initiative, significantly reducing paper usage and associated greenhouse gas emissions[142] - The company has established a hazardous waste management system, with a total of 23.1 tons of hazardous waste processed in 2019[140] Employee and Management - The workforce consisted of 581 employees as of December 31, 2019, with 67% male and 33% female employees[150] - The company has not reported any occupational diseases or work-related injuries in 2019, maintaining a strong safety record[151] - The company invested over RMB 450,000 in employee training during the fiscal year 2019[152] - The company conducted three training sessions focused on "On-site Basic Management Improvement" to enhance production staff capabilities in 2019[152] Financial Management - The company maintains sufficient cash reserves for funding needs, future growth, and shareholder value when declaring dividends[176] - As of December 31, 2019, the distributable reserves amounted to approximately RMB 5.295 billion, down from RMB 6.146 billion in 2018[188] - The board has the authority to declare dividends based on financial performance, cash flow, and future operational needs[179] - The company has no preset dividend payout ratio and will review its dividend policy as necessary[178] - The company can declare dividends in various forms, including cash or scrip dividends[182] - The board will consider shareholder interests and any restrictions on dividend payments when declaring dividends[176]

Financial Performance - In the first half of 2019, the company achieved a sales revenue of HKD 627.4 million, representing a year-on-year growth of 6.7%[8] - Net profit increased from HKD 85.6 million in the previous year to HKD 116.9 million in the first half of 2019[8] - For the six months ended June 30, 2019, the company's sales revenue was approximately RMB 627.4 million, an increase of about 6.7% compared to RMB 587.9 million in the same period of 2018[20] - The net profit for the same period was approximately RMB 116.9 million, representing a significant increase of about 36.6% from RMB 85.6 million in the first half of 2018, primarily due to a substantial growth in other income and gains[20] - The company reported a total comprehensive income of RMB 117,583 thousand for the period, compared to RMB 85,473 thousand in 2018, an increase of 37.5%[115] - Basic earnings per share rose to RMB 7.00, up from RMB 5.07, reflecting a growth of 37.9%[115] Revenue Breakdown - In the power distribution sector, sales revenue reached RMB 377.2 million, a 21% increase from RMB 312.8 million in the previous year, with flexible DC transmission contributing significantly to this growth[27] - The flexible DC transmission segment saw a revenue increase of 59%, reaching RMB 279.5 million compared to RMB 176.0 million in the same period of 2018[27] - The electrified transportation sector generated sales revenue of RMB 50.7 million, a 10% increase from RMB 46.3 million in the first half of 2018[35] - Revenue from the new energy generation sector surged by 133% to RMB 23.5 million, up from RMB 10.1 million year-on-year, benefiting from market expansion efforts[40] - The company reported that the sales revenue from other power distribution products, including power capacitors and smart grid monitoring products, showed stable growth compared to the previous year[32] Cost and Profitability - The comprehensive gross margin decreased from 35% in the previous year to 31% due to a 54% decline in sales revenue from the high-margin ultra-high voltage direct current transmission sector[8] - The company's gross profit decreased by 6.1% to approximately RMB 195.0 million, with the gross profit margin declining from 35.3% to 31.1% due to an increase in low-margin products[53] - The group’s pre-tax profit for the six months ended June 30, 2019, was impacted by a cost of sold inventory amounting to RMB 430,701,000, compared to RMB 378,183,000 in 2018, reflecting an increase of 13.9%[154] Research and Development - The company initiated the research and production project for IGBT, a core component in power semiconductors, and established the Swiss company SwissSEM for this purpose[10] - The company aims to leverage the IGBT project as a significant new growth driver for future development[14] - The company adopted an innovative "semi-contract manufacturing" model for the IGBT project, enhancing its investment efficiency and technical control[11] - The company established a research and development team in Switzerland and acquired morEnergy GmbH to enhance its technological capabilities[48] - The group plans to accelerate the implementation of the IGBT project, aiming to launch the first batch of test products in the first half of 2020 and complete the first production line by the end of 2020[75] Corporate Actions - The company sold a 43% stake in Jiujiang Sunking Technology Co., Ltd., generating net proceeds of HKD 193.5 million to focus on core business and accelerate high-end technology R&D[15] - The company acquired the German company morEnergy GmbH, focusing on new energy technology, enhancing its international R&D capabilities[14] - The company sold a 43% stake in Jiujiang Saijing Technology Co., Ltd. to Shanghai Tanda, resulting in Jiujiang Saijing no longer being a subsidiary of the group[81] Financial Position - The company's asset-liability ratio remained low at approximately 19.8%[9] - As of June 30, 2019, the group's current ratio was approximately 2.5, an increase from 2.4 as of December 31, 2018[64] - The group's cash and cash equivalents were approximately RMB 629.3 million as of June 30, 2019, down from RMB 766.9 million as of December 31, 2018[64] - The group's bank loans amounted to approximately RMB 327.2 million as of June 30, 2019, compared to RMB 360.4 million as of December 31, 2018[64] - The company's total equity as of June 30, 2019, was RMB 1,650,886,000, compared to RMB 1,574,822,000 as of June 30, 2018[121] Shareholder Information - As of June 30, 2019, Mr. Xiang Jie held 381,958,347 shares, representing 23.63% of the company's total equity[98] - Max Vision Holdings Limited holds 338,328,347 shares, representing approximately 20.93% of the company's equity[102] - The company has a significant shareholder structure with multiple entities holding over 5% of the issued share capital[102] Governance and Compliance - The company adhered to the corporate governance code as per the Stock Exchange Listing Rules, ensuring accountability and transparency[83] - The audit committee reviewed the accounting principles and practices, discussing risk management and internal control systems for the six months ending June 30, 2019[86] - The company confirmed compliance with the standard code for securities trading by directors as of June 30, 2019[95] Stock Options and Employee Compensation - The stock option plan allows the issuance of up to 136,604,000 shares, representing 10% of the total shares issued at the time of listing[106] - During the six months ending June 30, 2019, a total of 41,648,500 stock options were granted, with 2,547,500 options exercised and 400,000 options lapsed[109] - The total remuneration paid to key management personnel for the six months ended June 30, 2019, was RMB 10,715,000, up from RMB 6,088,000 in the same period of 2018, reflecting a year-on-year increase of approximately 76%[180]

Financial Performance - The group's sales revenue for 2018 was approximately RMB 1,290.5 million, representing an increase of about 11.7% compared to 2017[10]. - The net profit attributable to the parent company was RMB 183.3 million, a decrease of 5.9% from the previous year due to a reduction in high-margin sales[10]. - The operating cash flow reached approximately RMB 323.0 million, with a 45.4% increase in business receivables compared to the previous year[13]. - Revenue increased by approximately 11.7% from about RMB 1,155.4 million in 2017 to about RMB 1,290.5 million in 2018, driven by sales growth in the power distribution and industrial sectors[45]. - Sales cost rose by approximately 23.5% from about RMB 692.2 million in 2017 to about RMB 855.1 million in 2018, primarily due to increased sales revenue[46]. - Gross profit decreased by approximately 6.0% from about RMB 463.2 million in 2017 to about RMB 435.4 million in 2018, with gross margin declining from approximately 40.1% to about 33.7%[47]. - Pre-tax profit slightly decreased from about RMB 250.0 million in 2017 to about RMB 245.3 million in 2018, primarily due to the reduction in gross profit[53]. - Profit attributable to owners of the parent decreased from approximately RMB 194.7 million for the year ended December 31, 2017, to approximately RMB 183.7 million for the year ended December 31, 2018, resulting in a net profit margin decline from approximately 16.9% to approximately 14.2%[56]. Revenue by Sector - In the power distribution and transmission sector, revenue was RMB 735.5 million with a gross margin of 34%, compared to RMB 691.4 million and a gross margin of 48% in 2017[16]. - The electrified transportation sector saw revenue of RMB 91.3 million with a gross margin of 34%, up from RMB 43.7 million and a gross margin of 30% in 2017[16]. - The industrial and other sectors generated revenue of RMB 463.7 million with a gross margin of 33%, compared to RMB 420.3 million and a gross margin of 28% in 2017[16]. - The revenue from flexible DC transmission surged by 280% to RMB 471.9 million, while the revenue from ultra-high voltage DC transmission plummeted by 70% to RMB 142.3 million[20]. - The electrification transportation sector's revenue reached RMB 91.3 million, marking a 109% increase from RMB 43.7 million in 2017[26]. - The sales revenue from rail transportation vehicles increased by 158% to RMB 75.8 million, driven by the growth in electric locomotive sales[26]. - The industrial and other sectors generated revenue of RMB 463.7 million, a 10% increase from RMB 420.3 million in 2017[31]. - The revenue from new energy generation surged by 254% to RMB 29.0 million, reflecting strong demand for related products[31]. Research and Development - The company emphasizes R&D in power electronics technology, aiming to enhance energy efficiency and maintain competitive advantages in domestic and international markets[37]. - The company has established research centers in Europe and Wuhan, collaborating with renowned institutions to improve project implementation capabilities[37]. - The company successfully developed a digital IGBT driver for electric vehicles and a solid-state DC circuit breaker for marine applications in 2018[38]. - The company has initiated multiple independent R&D projects for high-end power electronic devices, responding to the growing demand in emerging energy technology applications[42]. - Research and development costs increased by approximately 20.9% from about RMB 44.4 million in 2017 to about RMB 53.7 million in 2018, reflecting increased investment in product development[50]. Financial Management and Governance - The asset-liability ratio remained low at 20.0% to 25.0% in 2018, indicating a stable financial management policy[13]. - The company continues to implement prudent financial management policies, monitoring its capital structure based on the ratio of total liabilities to total assets[61]. - The company has a strong board of directors with diverse backgrounds in finance, management, and corporate governance, enhancing its strategic decision-making capabilities[78]. - The company is committed to maintaining high standards of corporate governance and financial transparency, as evidenced by the qualifications of its directors[74]. - The company has a strong focus on internal control systems and risk management procedures to ensure compliance with statutory regulations[89]. - The board of directors consists of three executive directors, three non-executive directors, and four independent non-executive directors, ensuring compliance with listing rules[90]. - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions for the year ended December 31, 2018[87]. Corporate Social Responsibility - The company has been actively fulfilling its corporate social responsibility, focusing on green development and enhancing management in areas such as new product R&D and supply chain management[130]. - The group donated RMB 20,000 to support poverty alleviation efforts and RMB 50,000 to assist underprivileged children in education during 2018[156]. - The company encourages two-way communication with institutional and private investors, providing detailed information about its business in annual and interim reports[128]. - The company has established environmental key performance indicators and data statistical methods applicable to its operations[132]. - The company adheres to various environmental laws and regulations, ensuring compliance in its production activities and managing emissions from vehicle sources[133]. Employee Management - The total number of employees as of December 31, 2018, was 636, with 62% male and 61% of employees aged 35 or younger[146]. - The group invested over RMB 700,000 in employee training during 2018[149]. - The company has established a human resources management system to stabilize its core employee team, including a defined promotion management system[117]. - The company implemented a performance bonus management method in 2018, distributing a bonus of RMB 100,000 to all employees if the annual budget net profit is achieved[117]. Environmental Impact - In 2018, the total water usage increased to 139,116 tons from 105,535 tons in 2017, representing a 31.7% increase[138]. - Electricity consumption rose to 6,060,529 kWh in 2018, up from 4,199,079 kWh in 2017, marking a 44.4% increase[138]. - Direct greenhouse gas emissions were 221 tons in 2018, compared to 196 tons in 2017, reflecting a 12.8% increase[136]. - Indirect greenhouse gas emissions increased significantly to 6,560 tons in 2018 from 4,609 tons in 2017, a rise of 42.3%[136]. - The company processed 200 tons of harmless waste steel for sale in 2018, along with 2 tons of iron shavings and 4 tons of waste paper[136]. - The company established a waste management system to monitor and handle hazardous waste, with a total of 25 tons of hazardous waste processed in 2018[136]. - The company achieved ISO14001 environmental management certification for its main products, ensuring compliance with environmental regulations[140]. Board and Director Information - Non-executive director Yan Fuquan has extensive experience in finance, having served as Chief Financial Officer and Factory Director at Hengyang Textile Machinery Factory[71]. - Non-executive director Zhu Ming is currently the Chief Financial Officer of China Hengtian Holdings Co., Ltd., with a master's degree in accounting from Northeast University of Finance and Economics[72]. - Independent non-executive director Chen Shimin has a PhD from the University of Georgia and is a professor at China Europe International Business School, with rich experience in financial and management accounting[74]. - Independent non-executive director Zhang Xuejun has held various governmental positions and has experience in business management in mainland China[75]. - Independent non-executive director Liang Mingshu has over 15 years of experience in finance and accounting, previously serving as CFO at several listed companies[79]. - The company’s chief financial officer has over ten years of experience in accounting and finance, having joined the group in 2010[85]. - The board of directors held five meetings in 2018 to review and approve the group's financial and operational performance[96]. - The audit committee held three meetings in 2018, reviewing the financial statements and internal control procedures, and confirmed the appointment of Ernst & Young as the external auditor[103].