Revenue and Profitability - Revenue increased by approximately 14.9% to about RMB 1,054.7 million[1] - Net profit attributable to shareholders was approximately RMB 31.5 million, with basic and diluted earnings per share of approximately RMB 1.94 and RMB 1.93, respectively[1][39][40] - Gross profit rose by approximately 28.3% to about RMB 335.5 million, with a gross margin increase from approximately 28.5% to about 31.8%[1][10] - The total comprehensive income for the year was approximately RMB 23.8 million, compared to RMB 18.8 million in the previous year[37] - The net profit attributable to the parent company increased by approximately 31.3% from about RMB 24.0 million in 2022 to about RMB 31.5 million in 2023, primarily due to revenue growth[152] Expenses and Costs - Administrative expenses increased by approximately 18.9% to about RMB 138.4 million, primarily due to asset depreciation and an increase in personnel for self-produced IGBTs[23] - Research and development costs increased to approximately RMB 113.6 million from RMB 90.1 million in the previous year[27] - The cost of goods sold for 2023 was RMB 719,174 thousand, compared to RMB 656,379 thousand in 2022, indicating an increase of approximately 9.5%[76] - The total employee benefits expense increased to RMB 124,115 thousand in 2023 from RMB 106,806 thousand in 2022, marking a rise of approximately 16.1%[76] - Interest expense on bank loans for 2023 was RMB 7,745 thousand, up from RMB 7,283 thousand in 2022, reflecting an increase of about 6.3%[78] Assets and Liabilities - Non-current assets increased to RMB 844,023 thousand in 2023 from RMB 753,542 thousand in 2022, representing an increase of approximately 12%[43] - Current assets rose to RMB 1,993,430 thousand in 2023, up from RMB 1,743,081 thousand in 2022, reflecting an increase of about 14.4%[43] - Total current liabilities increased to RMB 691,655 thousand in 2023 from RMB 408,869 thousand in 2022, representing a rise of approximately 69%[43] - Non-current liabilities rose to RMB 224,137 thousand in 2023, up from RMB 173,806 thousand in 2022, reflecting an increase of approximately 29%[45] - Cash and cash equivalents increased to RMB 799,300 thousand in 2023 from RMB 618,768 thousand in 2022, marking a growth of approximately 29.2%[43] Inventory and Receivables - Inventory rose by approximately 41.0% to about RMB 229.9 million, mainly due to increased stocking at the end of the period[12] - The total accounts receivable amounted to RMB 741,768,000, an increase from RMB 654,024,000 in the previous year, reflecting a growth of approximately 13.4%[91] - The company reported a net value of trade receivables after impairment of RMB 727,260,000, compared to RMB 642,202,000 in the previous year, indicating a growth of approximately 13.3%[91] - The average inventory turnover days decreased from approximately 112 days in 2022 to about 107 days in 2023[154] - The company's trade receivables increased by approximately 2.1% from about RMB 798.2 million in 2022 to about RMB 814.6 million in 2023, attributed to revenue growth[155] Taxation - The total tax expense for the year 2023 amounted to RMB 22,008 thousand, an increase from RMB 15,859 thousand in 2022, representing a growth of approximately 38%[69] - The effective tax rate calculated based on the actual rates was RMB 23,384 thousand for mainland China, with a total tax expense of RMB 22,008 thousand after adjustments[72] Market Performance - The company maintained a competitive edge in the national grid power capacitor procurement, achieving a revenue growth of approximately 14% in this segment compared to the previous year[20] - The company's revenue in the power distribution sector for the year ended December 31, 2023, was RMB 416,381,000, representing a 29% increase from RMB 322,671,000 in 2022[105] - The revenue from ultra-high voltage direct current transmission increased by 50% to RMB 192,721,000 in 2023, compared to RMB 128,852,000 in 2022[105][106] - In 2023, the company's revenue from foreign markets increased by approximately 80% compared to 2022, primarily due to the sales growth of marine solid-state DC circuit breakers and the acquisition of KWx, now renamed Astrolkwx[139] Research and Development - The company continues to focus on R&D in power semiconductors, aiming to enhance market coverage and export scale in 2024[162] - The company has initiated the development of multiple series of chips and modules with voltages of 1200V and 1700V, expected to be launched in 2024[116] - Research and development costs increased by approximately 26.1% from about RMB 90.1 million for the year ended December 31, 2022, to about RMB 113.6 million for the year ended December 31, 2023, mainly due to increased R&D costs for self-produced IGBT and energy storage integrated busbar products[177] Shareholder Information - The company did not declare any dividends for the year ending December 31, 2023, consistent with the previous year[81] - The average number of ordinary shares issued during the year was 1,629,108,942, slightly down from 1,635,080,505 in the previous year[90] - The company repurchased a total of 15,766,000 shares at an approximate total cost of HKD 18,199,039 since the beginning of 2024[193]

Financial Performance - The group's revenue for the first half of 2023 was approximately RMB 459.5 million, representing a year-on-year increase of about 9.4%[5]. - The net loss for the group was approximately RMB 13.4 million, an increase of about 22.9% compared to the same period last year[5]. - The company's net loss attributable to shareholders decreased by approximately 14.1% from about RMB 7.1 million to about RMB 6.1 million for the six months ended June 30, 2023[35]. - The group's pre-tax loss increased from approximately RMB 4.2 million for the six months ended June 30, 2022, to about RMB 5.0 million for the same period in 2023[53]. - The company reported a net loss of RMB 13,382 thousand for the first half of 2023, compared to a net loss of RMB 10,917 thousand in the same period last year[147]. - Basic and diluted loss per share for the period was RMB 0.37, compared to RMB 0.44 in the previous year, indicating a decrease of 15.9%[129]. - The company reported a basic loss per share based on a loss attributable to equity holders of RMB 6,088,000, compared to RMB 7,149,000 for the same period in 2022[196]. Revenue Breakdown - Sales volume of IGBT modules reached 100,000 units, significantly exceeding the total sales volume for the entire year of 2022[5]. - Sales in the new energy generation and storage sectors accounted for approximately 83.3% of IGBT module sales, while electric vehicles and electrical equipment accounted for 9.3% and 7.4%, respectively[5]. - Revenue from the high voltage direct current transmission sector increased by approximately 114% compared to the same period in 2022[58]. - Revenue from the electrified transportation sector increased by approximately 45% compared to the same period in 2022[61]. - The revenue from the industrial and other sectors increased by approximately 16% year-on-year, driven by higher sales of self-developed IGBT and laminated busbars[71]. - Revenue from foreign markets reached RMB 19,942 thousand, a 59% increase from RMB 12,518 thousand in the same period of 2022[75]. - Revenue from the energy storage sector increased by approximately 15% year-on-year due to higher sales of self-developed IGBT products[86]. - Revenue from the sale of electronic power components reached RMB 459,480,000, an increase from RMB 420,042,000 in the previous year, representing a growth of approximately 9.3%[189]. Cost and Expenses - The gross profit margin slightly decreased from approximately 27.5% for the six months ended June 30, 2022, to about 27.0% for the six months ended June 30, 2023[43]. - The gross profit increased by approximately 7.3% to about RMB 124.2 million in the first half of 2023, up from approximately RMB 115.7 million in the same period of 2022[81]. - Research and development costs increased by approximately 30.5% from about RMB 39.7 million for the six months ended June 30, 2022, to about RMB 51.8 million for the same period in 2023[47]. - The financing costs increased to RMB 4,045 thousand from RMB 3,896 thousand year-over-year, reflecting higher interest expenses[147]. - The company experienced a significant increase in inventory write-downs to RMB 2,960 thousand, up from RMB 1,141 thousand in the previous year, suggesting challenges in inventory management[136]. Assets and Liabilities - Total non-current assets as of June 30, 2023, amounted to RMB 569,363,000, an increase from RMB 513,308,000 as of December 31, 2022, reflecting a growth of 10.9%[131]. - Current assets increased to RMB 1,730,000,000 from RMB 1,646,000,000, marking a rise of 5.1%[131]. - Total liabilities decreased to RMB 1,901,997,000 from RMB 1,913,948,000, a reduction of 0.9%[133]. - Total current assets rose to RMB 1,755,020 thousand compared to RMB 1,743,081 thousand, marking an increase of about 0.7%[150]. - Total liabilities increased to RMB 423,665 thousand from RMB 408,869 thousand, reflecting a rise of approximately 3.6%[151]. Strategic Initiatives - The group is focusing on expanding its business in the Nordic market and globally through strategic acquisitions and partnerships[14]. - The company plans to enhance R&D of IGBT and SiC modules and accelerate new product development, aiming to initiate overseas sales within the year[33]. - The company has initiated the development of new products including 750V IGBT and FRD chips, and 1200V SiC MOSFET chips, enhancing its R&D capabilities[90]. - The company plans to continue its market expansion and product development strategies to enhance future performance[135]. Shareholder Information - As of June 30, 2023, the company has issued a total of 1,631,662,000 shares[103]. - Max Vision Holdings Limited holds 338,328,347 shares, representing approximately 20.74% of the company's equity[119]. - The new share option plan allows for the issuance of up to 163,083,100 shares, equivalent to about 9.99% of the total shares issued as of the mid-term report date[124]. - The total number of shares that may be issued under the existing share option plan is capped at 136,604,000 shares, which is about 8.37% of the total shares issued as of June 30, 2023[120]. - The company reported no dividends declared for the six months ended June 30, 2023, consistent with the previous year[173].

Revenue Performance - In the first half of 2023, the company's revenue from the high voltage direct current transmission sector decreased by approximately 27% compared to the same period in 2022[1]. - Revenue increased by approximately 9.4% to about RMB 459.5 million[53]. - Revenue from the power distribution sector was RMB 175,099 thousand for the six months ended June 30, 2023, with a gross margin of 39.8%, compared to RMB 166,499 thousand and a gross margin of 35.7% in the same period of 2022, showing a revenue increase of 5.4%[90]. - The group's revenue in the electrification transportation sector increased by approximately 6% compared to the same period in 2022[94]. - Revenue from the rail transportation segment reached RMB 31,293,000, reflecting a 45% increase from RMB 21,552,000 in the previous year[95]. - The electric vehicle segment saw a significant decline, with revenue dropping by 59% to RMB 5,700,000 from RMB 13,885,000[95]. - The group's revenue from self-developed IGBT in the energy storage sector grew by about 15% year-on-year[98]. - Total customer contract revenue from the sale of electronic power components was RMB 459,480,000, up from RMB 420,042,000 in the same period last year[101]. - Revenue from the foreign market increased by 59% to RMB 19,942,000, compared to RMB 12,518,000 in the prior year[126]. Profitability and Loss - The gross profit margin slightly decreased from approximately 27.5% in the first half of 2022 to about 27.0% in the first half of 2023[13]. - Gross profit rose by approximately 7.3% to about RMB 124.2 million[53]. - Loss attributable to equity holders of the parent company was approximately RMB 6.1 million, with a total comprehensive loss of about RMB 5.7 million[53]. - The company reported a pre-tax loss of RMB 6,088 thousand for the six months ended June 30, 2023, compared to a loss of RMB 7,149 thousand in the same period of 2022, indicating an improvement in performance[83]. - The group reported a basic loss per share based on a loss attributable to equity holders of RMB 6,088,000 for the period[108]. - The net loss margin improved from approximately -1.7% to -1.3% for the six months ended June 30, 2023[170]. Costs and Expenses - The company's sales cost increased by approximately 10.2% from about RMB 304.3 million in the first half of 2022 to about RMB 335.3 million in the first half of 2023, primarily due to increased revenue[12]. - Research and development costs rose by approximately 30.5% from about RMB 39.7 million in the first half of 2022 to about RMB 51.8 million in the first half of 2023, mainly due to increased R&D costs for self-produced IGBT and DC support capacitors[16]. - The total tax expense for the six months ended June 30, 2023, was RMB 8,412 thousand, compared to RMB 6,765 thousand in the same period of 2022, representing an increase of 24.3%[82]. - The group's administrative expenses rose by approximately 12.4% from about RMB 60.4 million to about RMB 67.9 million, mainly due to asset depreciation and an increase in personnel for self-produced IGBT[165]. Assets and Liabilities - Non-current assets totaled RMB 800.8 million, an increase from RMB 753.5 million[58]. - Current assets amounted to RMB 1,755.0 million, compared to RMB 1,743.1 million in the previous year[58]. - Total liabilities increased to RMB 230.2 million from RMB 173.8 million[59]. - The company reported a net asset value of RMB 1,901.997 million, slightly down from RMB 1,913.948 million[59]. - The company's capital debt ratio increased from about 7.6% as of December 31, 2022, to approximately 12.4% as of June 30, 2023[25]. - The current ratio decreased from approximately 4.3 as of December 31, 2022, to about 4.1 as of June 30, 2023, mainly due to increased bank borrowings[35]. Inventory and Receivables - The average inventory turnover days decreased from approximately 112 days as of December 31, 2022, to about 108 days as of June 30, 2023, mainly due to increased stock[22]. - The average turnover days for trade receivables increased from about 258 days as of December 31, 2022, to approximately 282 days as of June 30, 2023, primarily due to increased revenue[23]. - The total trade receivables as of June 30, 2023, were RMB 689,503 thousand, up from RMB 654,024 thousand as of December 31, 2022, reflecting an increase of approximately 5.4%[85]. - Trade receivables increased by approximately 7.5% from about RMB 798.2 million to about RMB 858.3 million, mainly due to revenue growth[141]. - The group's inventory increased by approximately 22.0% from about RMB 163.1 million to about RMB 199.0 million, primarily due to increased stocking[140]. Government Support and Future Outlook - The company has received various government subsidies related to its investments and technological advancements, which are recorded as deferred income in the financial statements[78]. - Government subsidies increased to RMB 12,109,000 from RMB 9,225,000, marking a growth of 31%[103]. - The company anticipates favorable market conditions in the second half of 2023, particularly in areas such as DC transmission, electric vehicles, and renewable energy generation, as new projects are expected to emerge[189]. Shareholder Actions - The company repurchased a total of 590,000 shares on the Hong Kong Stock Exchange, with a total purchase price (including related expenses) of approximately HKD 1,001,800[190]. - The company does not recommend the payment of any interim dividend for the six months ended June 30, 2023, due to a confirmed loss during this period[182]. - The group did not declare any dividends for the first half of 2023, consistent with the previous year[107].

Financial Performance - The pre-tax profit increased by approximately 6.3% from about RMB 366 million for the year ended December 31, 2021, to about RMB 389 million for the year ended December 31, 2022, mainly due to increased gains from forward foreign exchange contracts[3]. - The net profit margin rose from approximately 1.7% for the year ended December 31, 2021, to approximately 2.6% for the year ended December 31, 2022[4]. - The company's gross profit decreased by approximately 7.9% from about RMB 283.8 million for the year ended December 31, 2021, to about RMB 261.4 million for the year ended December 31, 2022, primarily due to a decrease in revenue and rising raw material prices[70]. - The company's revenue for the year ended December 31, 2022, was approximately RMB 917.8 million, a slight decrease of about 1.4% compared to 2021, primarily due to a significant decline of approximately 40% in the revenue from the power transmission and distribution sector[85]. - Other income and gains increased significantly by approximately 73.4% to about RMB 69.7 million for the year ended December 31, 2022, compared to RMB 40.2 million in 2021, primarily due to increased gains from forward foreign exchange contracts[122]. - Total comprehensive income attributable to owners of the parent increased by approximately 37.3% from about RMB 18.5 million for the year ended December 31, 2021, to about RMB 25.4 million for the year ended December 31, 2022, primarily due to increased gains from forward foreign exchange contracts[181]. Inventory and Trade Management - The average inventory turnover days decreased from about 147 days for the year ended December 31, 2021, to about 112 days for the year ended December 31, 2022, primarily due to a reduction in stock at the end of the period[5]. - Trade payables increased by approximately 37.7% to about RMB 250.8 million as of December 31, 2022, compared to RMB 182.1 million as of December 31, 2021, primarily due to account period management[129]. - Trade receivables and notes receivable increased by approximately 26.8% from about RMB 629.3 million as of December 31, 2021, to about RMB 798.2 million as of December 31, 2022, mainly due to slower collections affected by the pandemic[182]. - The average turnover days for trade payables and notes payable increased from approximately 102 days for the year ended December 31, 2021, to approximately 118 days for the year ended December 31, 2022, primarily due to account period management[183]. Debt and Capital Structure - Interest-bearing bank borrowings decreased by approximately 28.5% from about RMB 204.1 million as of December 31, 2021, to about RMB 146.0 million as of December 31, 2022, mainly due to adjustments in the capital structure[8]. - The capital debt ratio decreased from approximately 11.3% as of December 31, 2021, to about 7.6% as of December 31, 2022, mainly due to a reduction in the bank loan balance[131]. - Cash and cash equivalents increased by approximately 5.4% from RMB 587.2 million on December 31, 2021, to RMB 618.8 million on December 31, 2022, primarily due to net cash inflow from operating activities and increased financing during the period[154]. - As of December 31, 2022, cash and bank balances amounted to approximately RMB 429.0 million, down from RMB 485.8 million in the previous year[154]. Corporate Governance - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors for the year ended December 31, 2022[26]. - The board of directors consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balance of skills and experience necessary for effective leadership and independent decision-making[27]. - The audit committee consists of three independent non-executive directors, ensuring adequate financial and accounting expertise[32]. - The company has established a nomination committee to oversee the nomination process for directors and ensure compliance with independence requirements[54]. - The company has a formal and transparent process for selecting and appointing directors, including succession planning[55]. - The company has made improvements in handling and disclosing insider information to prevent potential mishandling[44]. - The audit committee members are not former partners of the company's current external auditors, ensuring independence[32]. Research and Development - Research and development costs increased by approximately 7.1% to about RMB 90.1 million for the year ended December 31, 2022, mainly due to higher costs associated with self-produced IGBT development[147]. - The company emphasizes the importance of clean energy technology research and innovation as a driving force for sustainable development[74]. - The company is focused on core components and innovative technologies for the new energy industry chain, which is expected to maintain rapid growth in 2023[86]. Market and Product Development - In 2023, the company will focus on the market development of the i20 series 1700V IGBT chips and ST packaging modules, aiming to launch new products including automotive-grade HEEV and EVD packaged silicon carbide MOSFET modules within the year[74]. - The company has signed contracts with seven European and domestic customers for a total of 46 marine solid-state DC circuit breakers across 12 projects[69]. - The company's flexible DC transmission support capacitors became the first domestically produced products to be applied in bulk in the 220 kV Zhongbu-Tingshan flexible low-frequency transmission demonstration project[78]. - New product developments, such as the i20 series IGBT chips and integrated busbars, have received customer recognition and contributed to revenue growth exceeding RMB 10 million[101]. - Revenue from the electrification transportation sector surged by 119% to RMB 80.7 million in 2022, driven by strong demand for self-developed IGBT chips and modules[136]. Risk Management - The company has implemented strict internal control measures, including separation of incompatible duties and authorization controls, to enhance risk management[44]. - The board is responsible for the group's risk management and internal control systems, aiming to provide reasonable assurance against material misstatements[43]. - The company has completed a comprehensive annual audit of its internal control system, which includes an independent assessment of the effectiveness and adequacy of the risk management and internal control systems[62].

Financial Performance - Revenue decreased by approximately 1.4% to about RMB 917.8 million[3] - Gross profit decreased by approximately 7.9% to about RMB 261.4 million, with a gross margin reduction from approximately 30.5% to about 28.5%[3] - Profit attributable to equity holders of the parent was approximately RMB 24.0 million, with basic and diluted earnings per share of approximately RMB 1.47 and RMB 1.46, respectively[3] - Total comprehensive income for the year amounted to RMB 23.8 million, compared to RMB 21.4 million in the previous year[8] - The company reported a pre-tax profit of RMB 38.9 million, up from RMB 36.6 million in the previous year[10] - Other income and gains netted RMB 69.7 million, compared to RMB 40.2 million in the previous year[10] - The total comprehensive income attributable to equity holders of the parent was RMB 25.4 million, compared to RMB 18.5 million in the previous year[27] - The company reported a net asset value of RMB 1,913,948 thousand in 2022, up from RMB 1,799,553 thousand in 2021, which is an increase of 6.4%[30] - The total tax expense for the year 2022 was RMB 15,859,000, a decrease from RMB 18,072,000 in 2021, representing a reduction of approximately 6.5%[62] - The company's net profit attributable to owners increased significantly by approximately 54.8% to about RMB 24.0 million for the year ended December 31, 2022, compared to approximately RMB 15.5 million for the previous year, mainly due to increased gains from forward foreign exchange contracts[174] Revenue Sources - The company generated 96% of its revenue from sales of electronic power components in mainland China[24] - Revenue from the sale of electronic power components reached RMB 917,780 thousand in 2022, with no prior year comparison provided[36] - The revenue from the domestic market in 2022 was RMB 880,293,000, with a gross margin of 27%, compared to RMB 910,550,000 and a gross margin of 30% in 2021, indicating a decline in both revenue and margin[75] - The revenue from the foreign market increased to RMB 37,487,000 in 2022, with a gross margin of 53%, compared to RMB 20,442,000 and a gross margin of 58% in 2021, showing growth in revenue but a decrease in margin[75] - The revenue from the railway transportation sector increased due to the higher procurement volume of freight electric locomotives by China National Railway Group, compared to 2021[83] - The revenue in the industrial and other sectors grew in 2022, driven by favorable market conditions in electrical equipment and new energy power generation, compared to 2021[86] - The company's revenue from the industrial and other sectors reached RMB 476,901 thousand in 2022, a 43% increase from RMB 334,418 thousand in 2021[111] - The revenue from electrical equipment in 2022 was RMB 341,682 thousand, reflecting a 57% increase from RMB 218,200 thousand in 2021[111] - The company achieved significant growth in the railway transportation sector due to the mass delivery of the self-developed i20 series 1200V IGBT chips and ED packaged IGBT modules[109] Costs and Expenses - Gross profit margin decreased from approximately 30.5% for the year ended December 31, 2021, to about 28.5% for the year ended December 31, 2022, primarily due to a reduction in the proportion of high-margin products and rising raw material prices[119] - The cost of goods sold was RMB 656,379 thousand in 2022, compared to RMB 647,178 thousand in 2021, showing a slight increase of 1.9%[38] - Research and development costs increased to RMB 90.1 million from RMB 84.1 million in the previous year[10] - Interest expenses on bank loans decreased to RMB 7,283 thousand in 2022 from RMB 9,932 thousand in 2021, a reduction of 26.7%[39] - The impairment loss for trade receivables increased to RMB 5,016,000 from a gain of RMB 865,000 in the previous year[50] Assets and Liabilities - Total assets less current liabilities increased to RMB 2,087,754 thousand in 2022, up from RMB 1,978,213 thousand in 2021, representing a growth of 5.5%[30] - Non-current assets totaled RMB 753,542 thousand in 2022, compared to RMB 717,623 thousand in 2021, reflecting an increase of 5%[30] - Trade receivables and notes receivable rose to RMB 798,243 thousand in 2022, up from RMB 629,345 thousand in 2021, indicating a significant increase of 27%[30] - The company’s total current liabilities amounted to RMB 408,869 thousand in 2022, compared to RMB 398,928 thousand in 2021, reflecting a slight increase of 2.4%[30] - The company’s trade payables and notes payable totaled RMB 250,837,000 in 2022, up from RMB 182,092,000 in 2021, reflecting an increase of approximately 37.5%[74] - Cash and cash equivalents increased to RMB 618,768 thousand in 2022 from RMB 587,176 thousand in 2021, marking a growth of 5.3%[30] - Cash and bank balances as of December 31, 2022, were approximately RMB 429.0 million, down from about RMB 485.8 million as of December 31, 2021[128] - The current ratio increased from approximately 4.2 as of December 31, 2021, to about 4.3 as of December 31, 2022, primarily due to the increase in accounts receivable[178] - The capital debt ratio decreased from approximately 11.3% as of December 31, 2021, to about 7.6% as of December 31, 2022, mainly due to a reduction in bank loan balances[179] Market Expansion and Innovation - The company has initiated construction on the Jinshang-Hubei ±800KV UHVDC project in 2023, with several other projects expected to commence, indicating ongoing market expansion efforts[80] - The company actively expanded its overseas market, with revenue from foreign markets increasing in 2022, primarily due to higher sales of marine solid-state DC circuit breakers[113] - The company emphasized technological innovation and R&D, successfully passing multiple customer tests for the i20 series 1200V IGBT chips and receiving bulk orders in 2022[115] - The company launched the i20 series 1700V IGBT chips and d20 diode chips in January 2023, along with progress in developing two vehicle-grade silicon carbide modules[134] - The company is positioned to capitalize on favorable market conditions for high voltage direct current (HVDC) projects, with several projects expected to commence within the year[184] Governance and Compliance - The company has adopted the corporate governance code as per the Listing Rules Appendix 14 and has complied with all applicable provisions for the year ended December 31, 2022[188] - The board does not recommend the payment of any final dividend for the year ended December 31, 2022, consistent with the previous year[191] - The company has established a credit control department to minimize credit risk associated with trade receivables[47] - The group endorsed receivables with a face value of RMB 17,750,000 to certain suppliers, an increase from RMB 11,369,000 in the previous year, to settle trade payables[199]

Revenue Performance - The company's revenue for the first half of 2022 was RMB 420,042,000, a decrease from RMB 490,784,000 in the same period of 2021, reflecting a decline of approximately 14.3%[7] - Domestic market revenue was RMB 407,524,000 with a gross margin of 26.8%, compared to RMB 479,909,000 and a gross margin of 25.4% in the previous year[7] - The gross margin for the international market improved to 52.3% in the first half of 2022, up from 46.3% in the same period of 2021, despite revenue being RMB 12,518,000[7] - The group’s revenue for the first half of 2022 decreased by approximately 14.4% to about RMB 420.0 million from approximately RMB 490.8 million in the same period of 2021[26] - Revenue for the six months ended June 30, 2022, was RMB 420,042 thousand, a decrease of 14.3% compared to RMB 490,784 thousand in the same period of 2021[77] - Revenue from sales of electronic power components decreased to RMB 420,042,000 in 2022 from RMB 490,784,000 in 2021, representing a decline of 14.3%[92] Sector Performance - The company reported a significant revenue drop in the power transmission sector, with revenue of RMB 166,499,000 in 2022 compared to RMB 303,369,000 in 2021, reflecting a decline of approximately 45%[8] - In the power distribution sector, revenue was RMB 166,499 thousand, a decline of 45% compared to RMB 303,369 thousand in 2021[11] - The revenue from the ultra-high voltage direct current transmission segment increased by 40% to RMB 72,457 thousand from RMB 51,938 thousand in 2021[12] - The flexible direct current transmission segment saw a significant decline of 89%, with revenue dropping to RMB 20,912 thousand from RMB 197,413 thousand in 2021[13] - The electrification transportation sector experienced a 96% increase in revenue, reaching RMB 36,908 thousand compared to RMB 18,792 thousand in 2021[15] - The electric vehicle segment reported a staggering increase of 11,667%, with revenue rising to RMB 13,885 thousand from RMB 118 thousand in 2021[15] - The industrial and other sectors generated revenue of RMB 204,117 thousand, a 29% increase from RMB 157,748 thousand in 2021[18] Product Development and Innovation - The company delivered over 150,000 self-developed IGBT chips and nearly 20,000 IGBT modules in the first half of 2022, indicating a strong focus on product development[4] - The company plans to accelerate the development of its IGBT business, focusing on 1200V IGBT chips and the construction of a second packaging testing production line[5] - The company aims to complete the development of 1700V IGBT chips and other advanced modules in the near future, indicating ongoing innovation efforts[5] - The company has initiated the mass delivery of flexible DC transmission support capacitors, showcasing its commitment to new product launches[4] - The group is focusing on R&D, with new products like the 1200V IGBT chips and diode chips being recognized and ordered in various sectors including electric vehicles and renewable energy[24] Financial Performance - The gross profit margin improved to approximately 27.5% in the first half of 2022, up from 25.8% in the same period of 2021[28] - Other income and gains increased by approximately 39.3% to about RMB 24.8 million from RMB 17.8 million in 2021, mainly due to gains from forward foreign exchange contracts[29] - Pre-tax losses decreased from RMB 8.2 million to RMB 4.2 million, reflecting improvements in operational performance[36] - Net loss attributable to equity holders decreased by approximately 35.5% from RMB 11.0 million to RMB 7.1 million, driven by increased profits from non-IGBT businesses[38] - The company reported a basic and diluted loss per share of RMB 0.44, compared to RMB 0.67 in the previous year[77] - The total comprehensive loss for the period was RMB 12,744,000, compared to a loss of RMB 10,963,000 in the previous year[81] Cash Flow and Liquidity - The company reported a cash flow from operating activities of RMB 26,165,000 for the six months ended June 30, 2022, compared to RMB 252,915,000 for the same period in 2021, indicating a significant decrease[82] - Net cash flow from operating activities for the six months ended June 30, 2022, was RMB 13,954 thousand, a decrease of 94.2% compared to RMB 239,045 thousand in the same period of 2021[83] - Cash and cash equivalents as of June 30, 2022, amounted to RMB 547,135 thousand, down from RMB 587,176 thousand at the end of 2021[78] - Current ratio decreased from approximately 4.2 to 3.8, mainly due to an increase in accounts payable and notes[42] Shareholder and Corporate Governance - The company issued 1,635,948,000 shares as of June 30, 2022[49] - The company repurchased 4,000,000 shares at a total cost of approximately HKD 8,426,287 during the first half of 2022[49] - The repurchased shares were canceled in the first half of 2022[49] - The company emphasizes good corporate governance practices to enhance accountability and transparency[52] - Major shareholders hold approximately 23.35% and 1.18% of the company's shares, respectively[57] Tax and Financing - Income tax expenses increased by approximately 51.1% from RMB 4.5 million to RMB 6.8 million, mainly due to increased profits from businesses outside of self-produced IGBT[37] - Financing costs decreased by approximately 51.3% from RMB 8.0 million to RMB 3.9 million, mainly due to a reduction in outstanding bank loans[34] - Total tax expenses for the period amounted to RMB 6,765,000, up from RMB 4,506,000 in 2021, marking an increase of 50.1%[98] Trade Receivables and Payables - Trade receivables and notes increased by approximately 20.1% from RMB 629.3 million to RMB 755.8 million, primarily due to slower cash collection affected by the pandemic[40] - Trade receivables increased to RMB 668,525,000 as of June 30, 2022, compared to RMB 491,809,000 as of June 30, 2021, reflecting a growth of approximately 36%[102] - Trade payables amounted to RMB 210,479,000 as of June 30, 2022, compared to RMB 182,092,000 as of December 31, 2021, representing an increase of approximately 15.6%[104]

Financial Performance - The company's revenue for 2021 was approximately RMB 931.0 million, a decrease of about 23.4% compared to 2020[7] - The net profit for 2021 was approximately RMB 15.5 million, representing a decline of about 91.3% from the previous year[7] - In 2021, the total revenue was RMB 930,992,000, a decrease of 23.5% from RMB 1,215,811,000 in 2020, with an average gross margin of 30%[11] - Domestic market revenue was RMB 910,550, a decline of 24% from RMB 1,194,259 in 2020, with a gross margin of 30%[11] - The revenue from the power distribution sector was RMB 539,292, down 27% from RMB 739,866 in 2020, with a gross margin of 36%[17] - The revenue from the electrified transportation sector was RMB 36,840, a significant drop of 74% from RMB 142,550 in 2020[21] - The revenue from the industrial and other sectors increased by 7% to RMB 334,418 from RMB 311,843 in 2020[25] - The company reported a significant decrease in pre-tax profit by approximately 82.0% to about RMB 36.6 million, primarily due to reduced revenue and increased expenses related to self-produced IGBT business[47] - Total comprehensive income attributable to the parent company decreased approximately 89.6% from RMB 177.5 million for the year ended December 31, 2020, to approximately RMB 18.5 million for the year ended December 31, 2021, primarily due to a decrease in revenue and increased expenses in the self-produced IGBT business[49] - Net profit margin dropped significantly from approximately 14.6% for the year ended December 31, 2020, to approximately 1.7% for the year ended December 31, 2021[49] Product Development and Innovation - The company successfully developed the i20 IGBT chip, which has been well-received and is being supplied in bulk to customers in the electric vehicle and industrial control sectors[8] - The first fully automated IGBT module production line has been completed and is in mass production, with products undergoing testing at numerous companies in the electric vehicle, wind power, and photovoltaic sectors[8] - A significant sales contract for tens of thousands of ED Type IGBT modules was signed with a well-known domestic photovoltaic company, marking a breakthrough in the concentrated photovoltaic power generation sector[8] - The company plans to accelerate the development and promotion of IGBT chips with a voltage of 1700V and other IGBT and SiC modules in 2022[9] - The company aims to complete the construction of a second IGBT module production line in 2022[9] - The company is focusing on technological innovation as the primary driver of its development, particularly in the context of the new power system construction[9] - The company is committed to contributing to national energy strategy goals through enhanced innovation and application promotion[9] Market Outlook and Strategy - The outlook for high-voltage direct current transmission projects is optimistic, with several projects expected to start and others in planning stages[9] - The company is actively pursuing orders in high-voltage direct current transmission projects, with expectations for new contracts in 2022[19] - The company plans to enhance its product offerings in flexible direct current transmission technology, aligning with national clean energy goals[18] - The company anticipates a favorable development environment for its business in electric vehicles, wind power, and photovoltaic markets, contributing to long-term growth opportunities[154] - Overall, the management remains optimistic about future growth, citing strong demand in the market and a robust product pipeline[10] Corporate Governance - The company emphasizes strong corporate governance practices, adhering to the corporate governance code as per the Stock Exchange Listing Rules[73] - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring compliance with the requirement for one-third of directors to retire and be re-elected[76] - The company has maintained compliance with all applicable provisions of the corporate governance code for the year ending December 31, 2021[73] - The chairman of the board is responsible for overall corporate strategy and business performance, while the CEO focuses on monitoring the overall business operations[79] - The company has a structured process for the appointment and re-election of directors, with all directors serving a term of three years[77] - The company has experienced significant leadership changes, with independent non-executive directors resigning effective November 1, 2021, and January 1, 2022[78] - The company’s management team has extensive experience in the semiconductor industry, with key executives holding significant roles in subsidiary companies[71] - The CFO has over ten years of experience in accounting and finance, contributing to the company's financial oversight[70] - The company is committed to maintaining transparency and accountability to shareholders through regular reviews of its governance practices[73] Financial Management and Risks - The company faced interest rate risk related to bank borrowings with floating interest rates, as disclosed in note 26 of the consolidated financial statements[103] - The company has entered into forward currency contracts with reputable banks to manage foreign exchange risks arising from transactions in non-functional currencies[104] - Credit risk is managed by only transacting with recognized and reputable third parties, with ongoing monitoring of accounts receivable[105] - The company utilizes a working capital management tool to monitor liquidity risks, balancing the continuity and flexibility of funding[105] Shareholder Information and Dividends - No final dividend was recommended for the year ending December 31, 2021, compared to a dividend of 3 HK cents for the previous year[106] - The company has implemented a dividend policy to guide the declaration and distribution of profits to shareholders[106] - The board considers various factors, including future operations and income, when deciding on dividend declarations[107] - The company may propose and/or declare interim, annual, and special dividends depending on its financial condition and other relevant factors[107] Audit and Compliance - The company’s financial statements have been prepared in accordance with International Financial Reporting Standards, reflecting a true and fair view of its financial position as of December 31, 2021[155] - The audit report provides reasonable assurance that the financial statements are free from material misstatement due to fraud or error[163] - The audit firm communicated with the audit committee regarding the planned audit scope, timing, and significant findings[165] - The internal audit department conducted a comprehensive annual audit of the internal control system for the year ended December 31, 2021, and found it effective and sufficient[95] Subsidiaries and Investments - The company holds a 100% equity interest in subsidiaries such as Saijing Asia Pacific Limited and Wuxi Saijing Power Capacitor Co., Ltd., with significant operations in investment holding and production of power capacitors[178] - The financial performance of subsidiaries significantly impacts the annual results and constitutes a major part of the group’s net asset value[180] - The group adopted revised International Financial Reporting Standards (IFRS) for the first time in the current financial year, including IFRS 9, IAS 39, IFRS 7, IFRS 4, and IFRS 16[182]

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].