Financial Performance - Revenue for the six months ended June 30, 2020, was RMB 203,005,000, a decrease of 36.5% compared to RMB 319,735,000 in the same period of 2019[3]. - Gross profit for the period was RMB 29,589,000, down 29.0% from RMB 41,723,000 in 2019[3]. - The company reported a loss before tax of RMB 1,577,000, compared to a profit of RMB 7,217,000 in the previous year[3]. - Total comprehensive loss for the period attributable to owners of the Company was RMB 4,908,000, compared to a comprehensive income of RMB 3,635,000 in 2019[3]. - Basic and diluted loss per share for the period was RMB (2.16) cents, compared to earnings of RMB 1.01 cents per share in the previous year[3]. - The decline in financial performance was mainly due to a substantial decrease in demand for nylon umbrellas as a result of the COVID-19 pandemic[74]. - The loss attributable to owners of the Company was approximately RMB 4 million for the Period, compared to a profit of approximately RMB 3 million for the first half of 2019[74]. - Revenue decreased from approximately RMB 320 million for the first half of 2019 to RMB 203 million for the Period, representing a decrease of approximately 36.6% due to reduced demand for nylon umbrellas[81]. Assets and Liabilities - Net current assets as of June 30, 2020, were RMB 333,199,000, slightly up from RMB 332,466,000 at the end of 2019[6]. - Total assets less current liabilities amounted to RMB 469,770,000, compared to RMB 471,709,000 at the end of 2019[6]. - The company’s net assets as of June 30, 2020, were RMB 449,435,000, down from RMB 452,100,000 at the end of 2019[6]. - The company experienced a significant increase in trade payables, which rose to RMB 54,548,000 from RMB 31,479,000 in 2019[6]. - Cash and cash equivalents decreased to RMB 30,258,000 from RMB 66,152,000 at the end of 2019[6]. - Cash and cash equivalents as of June 30, 2020, were RMB 8,461,000, a decrease from RMB 76,317,000 as of June 30, 2019, indicating a decline of approximately 88.9%[27]. Cash Flow - For the six months ended June 30, 2020, net cash generated from operating activities was RMB 171,446,000, a significant increase from RMB 18,731,000 in the same period of 2019, representing an increase of approximately 815%[25]. - Net cash used in investing activities for the six months ended June 30, 2020, was RMB 4,742,000, compared to RMB 2,692,000 in 2019, reflecting an increase of approximately 76%[25]. - Net cash used in financing activities for the six months ended June 30, 2020, was RMB 183,302,000, a substantial increase from RMB 7,093,000 in 2019, representing an increase of about 2,585%[25]. Revenue Breakdown - Revenue from the sale of goods for the six months ended June 30, 2020, was RMB 203,005,000, down from RMB 319,735,000 in 2019, indicating a decrease of about 36.5%[30]. - Revenue from POE umbrellas increased to RMB 56,552,000 in 2020 from RMB 49,527,000 in 2019, representing a growth of 14.1%[40]. - Revenue from nylon umbrellas decreased significantly to RMB 48,645,000 in 2020 from RMB 184,287,000 in 2019, a decline of 73.6%[40]. - Revenue from umbrella parts rose to RMB 97,808,000 in 2020, up from RMB 85,921,000 in 2019, marking an increase of 13.5%[40]. - The Group's revenue from external customers in Japan decreased to RMB 75,491,000 in 2020 from RMB 89,126,000 in 2019, a decline of 15.3%[43]. - Revenue from external customers in Cambodia decreased to RMB 84,355,000 in 2020 from RMB 96,902,000 in 2019, a decline of 13.0%[43]. - The Group's major customers included Customer A with revenue of RMB 37,318,000 in 2020, down from RMB 57,506,000 in 2019, a decrease of 35.1%[46]. Expenses - Total staff costs for the six months ended June 30, 2020, were RMB 33,009,000, a decrease of 31.2% compared to RMB 47,928,000 in 2019[54]. - Research and development expenses for the period were RMB 3,636,000, down from RMB 4,253,000 in 2019, a decrease of 14.5%[55]. - Selling and distribution expenses increased, including marketing and promotion expenses to enhance brand awareness[74]. - Selling and distribution expenses increased by approximately RMB 6 million, or 100%, from approximately RMB 6 million for the first half of 2019 to RMB 12 million for the Period, primarily due to increased promotion expenses[80]. - Administrative expenses decreased by approximately RMB 7 million, or 28%, from approximately RMB 25 million for the first half of 2019 to RMB 18 million for the Period, mainly due to a decrease in equity-settled share-based payments[80]. Shareholding and Corporate Governance - Mr. Huang Wenji holds a long position with 125,033,900 shares, representing 66.05% of the total shareholding[124]. - Jicheng Investment Limited, wholly owned by Mr. Huang Wenji, has 123,140,900 shares, accounting for 65.05% of the total shareholding[122]. - Ms. Chen Jieyou, spouse of Mr. Huang Wenji, is deemed to have an interest in 123,140,900 shares, also representing 65.05%[125]. - The report indicates a significant concentration of shareholding among a few individuals, primarily Mr. Huang Wenji[124]. Strategic Initiatives - The Group is exploring and developing new business opportunities and projects to diversify its operations[73]. - The Group plans to further expand its branded umbrellas by intensifying marketing activities, with an allocation of RMB 10.6 million for this purpose[94]. - The Group has allocated RMB 36.9 million for investing in a trading company as part of its growth strategy[94]. - The Group aims to maintain and strengthen its position as a leading umbrella manufacturer in the Japan market and increase market share in existing markets such as Hong Kong, Cambodia, and South Korea[104]. - The Group intends to expand production capacity and enhance research and development capabilities to meet increasing demand in the umbrella market[105]. Market Conditions - The operating environment remains challenging due to the global economic slowdown, trade tensions between the PRC and the United States, and the impact of COVID-19 on consumer confidence[105]. - The Group's profitability may be adversely affected by the loss of key customers and changes in market demand levels for its products[86]. - The Group's sales are primarily made in US dollars, RMB, and Japanese Yen, exposing it to exchange rate risks[86]. Other Information - The Group did not declare or propose any dividends during the reported period, consistent with 2019[60]. - The Group completed the acquisition of 100% equity interest in Jinjiang Jingting for RMB 5 million in cash and a promissory note of RMB 24 million with a 36-month maturity term[102]. - The Group's current ratio improved to approximately 4.7 times as of June 30, 2020, compared to 2.3 times as of December 31, 2019[84]. - The average trade receivables turnover day increased from approximately 135 days for the year ended December 31, 2019, to approximately 198 days for the Period[84]. - The inventory turnover days increased from approximately 154 days for the year ended December 31, 2019, to approximately 282 days for the Period[84]. - As of June 30, 2020, the Group employed a total of 1,404 employees, an increase from 1,364 employees as of December 31, 2019[91]. - As of June 30, 2020, the Group had no significant capital commitments or contingent liabilities[91].

ANNUAL REPORT 2019 年報 CHINA JICHENG HOLDING LIMITED 中國集成控股有限公司 CHINA JICHENG HOLDINGS LIMITED 中國集成控股有限公司 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立之有限公司） Stock Code 股份代號: 1027 ANNUAL REPORT 年報 2019 CONTENTS | --- | --- | --- | |---------------------------------------------------------|----------------------------|-------| | | | 目錄 | | Corporate Information | 公司資料 | 2 | | Chairman's Statement | 主席報告 | 4 | | Management Discussion and Analysis | 管理層討論與分析 | 6 | | Corporate Governance ...

Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 319,735,000, representing a 23.5% increase from RMB 258,770,000 in the same period of 2018[3] - Gross profit for the period was RMB 41,723,000, with a gross margin of approximately 13.0%[3] - Profit before taxation decreased to RMB 7,217,000, down 33.8% from RMB 10,794,000 in the previous year[3] - Profit for the period attributable to owners of the Company was RMB 3,024,000, a decline of 62.8% compared to RMB 8,114,000 in 2018[3] - Total comprehensive income for the period attributable to owners of the Company was RMB 3,635,000, down from RMB 8,166,000 in the prior year[3] - The Company reported a basic and diluted earnings per share of RMB 0.08 cents, down from RMB 0.21 cents in the previous year[3] - Profit attributable to owners of the Company was approximately RMB3 million, reflecting a decrease of 62.7% compared to 2018[88] - Basic earnings per share was RMB0.08 cents for the Period[88] Revenue Breakdown - Revenue from POE umbrellas was RMB 49,527,000 in 2019, while nylon umbrellas generated RMB 184,287,000, and umbrella parts contributed RMB 85,921,000[30] - Revenue from external customers by geographical location showed that Japan contributed RMB 89,126,000, PRC contributed RMB 52,058,000, and Cambodia significantly increased to RMB 96,902,000 from RMB 29,397,000 in 2018[34] - The Group's total revenue for the six months ended June 30, 2019, was RMB 319,735,000, an increase of 23.5% compared to RMB 258,770,000 for the same period in 2018[34] Cost and Expenses - Cost of inventories recognized as an expense was RMB 278,012,000, up from RMB 218,523,000 in 2018, reflecting increased production costs[49] - Research and development expenses were RMB 4,253,000, a decrease from RMB 10,274,000 in the previous year, indicating a shift in investment strategy[49] - Selling and distribution expenses decreased by approximately RMB1 million, or 15.2%, from approximately RMB7 million in the first half of 2018 to RMB6 million in the period, attributed to tight control over promotion expenses[93] - Administrative expenses increased by approximately RMB1 million, or 3.6%, from approximately RMB24 million in the first half of 2018 to RMB25 million in the period, mainly due to equity-settled share-based payments of approximately RMB7 million[93] Cash Flow and Assets - Net cash generated from operating activities was RMB 18,731,000, a significant improvement compared to cash used of RMB 41,657,000 in the same period of 2018[12] - Current assets totaled RMB 602,874,000, an increase from RMB 568,527,000 at the end of 2018[6] - Cash and cash equivalents at June 30, 2019, were RMB 76,317,000, up from RMB 67,352,000 at the beginning of the year[14] - Trade receivables at 30 June 2019 totaled RMB 233,437,000, slightly down from RMB 234,075,000 at 31 December 2018[64] - Trade payables at 30 June 2019 were RMB 32,810,000, a decrease from RMB 35,204,000 at 31 December 2018[66] Corporate Governance - The Company is committed to high standards of corporate governance, with a Board comprising four executive Directors and three independent non-executive Directors[144] - Mr. Huang serves as both Chairman and CEO, which the Directors believe facilitates business strategy execution and decision-making[144] - The Audit Committee, established on January 23, 2015, comprises three independent non-executive Directors and has reviewed the Group's accounting principles and financial reporting matters[149] - The Remuneration Committee, also established on January 23, 2015, consists of three independent non-executive Directors, with Ms. Lee Kit Ying as chairperson[152] - The Nomination Committee, established on January 23, 2015, includes three independent non-executive Directors, with Mr. Yang Xuetai as Chairman[152] Strategic Initiatives - The Group aims to maintain and strengthen its leading position in the umbrella manufacturing market in Japan and its own brand umbrella manufacturing in China, while expanding market share in Hong Kong, Cambodia, and South Korea[131] - The Group plans to enhance its marketing activities to promote brand awareness both domestically and overseas, with a focus on traditional media and trade fairs[120] - The Group plans to enhance its production capacity and R&D capabilities to meet the growing demand in the umbrella market[131] - The Group is exploring and developing new business opportunities and projects to diversify its operations[131] Employee and Shareholder Information - The Group employed a total of 1,647 employees as of June 30, 2019, an increase from 1,592 employees as of December 31, 2018[113] - The emolument policy for employees is based on experience, qualifications, and competence, with additional benefits including contributions to provident funds and social insurance[113] - The Company expresses appreciation to all colleagues, shareholders, customers, bankers, and business associates for their support[152] Acquisitions - The acquisition of Jinjiang Jingting was completed for RMB5,000,000 in cash and a promissory note of RMB24,000,000[80] - Goodwill of RMB5,565,000 was recognized based on the fair value of identifiable assets and liabilities of Jinjiang Jingting[84] - Jinjiang Jingting contributed approximately RMB7,491,000 to the Group's revenue and a profit of approximately RMB275,000 for the period ended 30 June 2019[84] - The Group completed the acquisition of 100% equity interest in Jinjiang Jingting for a total consideration of RMB29 million, consisting of RMB5 million in cash and a promissory note of RMB24 million[124] Market Conditions - The global economic performance remains sluggish, and the operating environment is challenging due to the trade war between China and the United States, impacting consumer confidence[131] - The Group is committed to creating higher value and better returns for shareholders amidst market challenges[131]

Financial Performance - The Group's revenue for the year ended 31 December 2018 decreased to approximately RMB521 million, representing a decrease of approximately 3.2% compared to 2017[11]. - Profit attributable to the owner of the Company increased to approximately RMB19 million, representing an increase of approximately 429.7% compared to 2017[11]. - Revenue from POE umbrella products decreased by approximately RMB99 million, or 35.7%, from approximately RMB276 million in 2017 to approximately RMB177 million in 2018[11]. - Revenue from nylon umbrella products increased by approximately RMB14 million, or 7.9%, from approximately RMB171 million in 2017 to approximately RMB185 million in 2018[11]. - Revenue from umbrella parts products increased by approximately RMB68 million, or 74.2%, from approximately RMB91 million in 2017 to approximately RMB159 million in 2018[11]. - The Group's revenue decreased from approximately RMB 538 million for the year ended 31 December 2017 to approximately RMB 521 million for the year ended 31 December 2018, representing a decrease of approximately 3.2%[30]. - Revenue from overseas customers accounted for approximately 74% of the Group's total revenue for the year ended 31 December 2018, while domestic customers accounted for approximately 26%[21][22]. Cost and Profitability - The cost of sales decreased from approximately RMB 457 million for the year ended 31 December 2017 to approximately RMB 442 million for the year ended 31 December 2018, representing a decrease of approximately 3.4%[30]. - Gross profit decreased by approximately RMB 2 million, or 1.9%, from approximately RMB 81 million for the year ended 31 December 2017 to approximately RMB 79 million for the year ended 31 December 2018, while gross profit margin increased from approximately 15.0% to approximately 15.2%[30]. - Other income and gains increased by approximately RMB 9 million, or 188.8%, from approximately RMB 5 million for the year ended 31 December 2017 to approximately RMB 14 million for the year ended 31 December 2018[30]. - Selling and distribution expenses decreased by approximately RMB 2 million or 10.9% from approximately RMB 13 million for the year ended 31 December 2017 to approximately RMB 11 million for the year ended 31 December 2018[30]. - Administrative expenses decreased by approximately RMB11 million, or 19.7%, from approximately RMB57 million for the year ended 31 December 2017 to approximately RMB46 million for the year ended 31 December 2018[33]. - Finance costs increased by approximately RMB1 million, or 11.2%, from approximately RMB9 million for the year ended 31 December 2017 to approximately RMB10 million for the year ended 31 December 2018[33]. - Income tax expense increased by approximately RMB3 million, or 106.6%, from approximately RMB3 million for the year ended 31 December 2017 to approximately RMB6 million for the year ended 31 December 2018[33]. - Profit for the year increased by approximately RMB15 million, or 429.7%, from approximately RMB4 million for the year ended 31 December 2017 to approximately RMB19 million for the year ended 31 December 2018[33]. Business Strategy and Focus - The Company aims to maintain and strengthen its position as a leading umbrella manufacturer focused on the Japan market and its own branded products in the PRC market[14]. - The Group plans to shift its business focus from upstream manufacturing to downstream distribution network and brand building[15]. - The Group is exploring and developing new business opportunities and projects to diversify its business[15]. - The Group seeks to increase its market share in existing markets such as Hong Kong, Cambodia, and South Korea[14]. - The Group's new strategy aims to enhance shareholder returns by promoting its own branded umbrellas with higher profit margins[23]. - Future business focus will shift from upstream manufacturing to downstream distribution and brand building to enhance margins and shareholder returns[55]. Corporate Governance - The Company has committed to high standards of corporate governance, with a board comprising four executive directors and three independent non-executive directors[60]. - The Board resolved to reallocate approximately RMB61.4 million of unutilized net proceeds, with RMB36.9 million allocated for acquiring new brand names and/or licensing rights of umbrella products from Southeast Asian countries[46]. - The Company has established corporate governance policies and practices, ensuring compliance with laws and regulations[78]. - The Audit Committee, Nomination Committee, and Remuneration Committee support the Board, each with defined terms of reference approved by the Board[86]. - The Company has a Board Diversity Policy to ensure a diverse composition of the Board[92]. - The Company Secretary maintains detailed minutes of Board meetings, which include decisions made and dissenting views expressed, available for inspection[99]. Risk Management - The Group has established risk management procedures to address significant risks associated with its business, with annual reviews conducted by the Board[108]. - The internal control systems are designed to reduce risks associated with the business and minimize adverse impacts from those risks[110]. - The Audit Committee reviews the risk management and internal controls that are significant to the Group on an ongoing basis[108]. - The Group's risk management strategies include risk retention, avoidance, sharing, diversification, and transfer[108]. - For the year ended December 31, 2018, no significant deficiencies or weaknesses in the internal control system were identified by the external advisory firm[110]. Environmental Impact - The Group aims to reduce CO2 emissions and land contamination by complying with local environmental laws and regulations[139]. - The Group implemented measures to minimize material usage in manufacturing to maximize resource efficiency[144]. - The Group's policies ensure that wastewater is properly connected to the municipal sewage system and all land waste is sent to municipal solid waste management plants[144]. - The Group has not reported any non-compliance with environmental regulations during the year ended 31 December 2018[138]. - Water consumption decreased from 145,151 m³ in 2017 to 130,935 m³ in 2018, representing a reduction of approximately 9.0%[147]. - Electricity consumption decreased from 7,473,707 kWh in 2017 to 7,142,702 kWh in 2018, representing a reduction of approximately 4.4%[149]. Employee and Community Engagement - The total number of employees in China was 1,592 as of December 31, 2018, with a gender ratio of 1:0.86[155]. - The Group reported no work injuries or work-related fatalities during the year ended 2018[165]. - The Group donated RMB 70,000 to various recognized charity organizations, including Yongchun Charity Federation, to support community programs[176]. - There were over 3,569 participants in training courses during the year, with a male to female ratio of 1:0.8[165]. - The Group has established a comprehensive vertical supply chain management system with 789 suppliers, approximately 97% of which are located in Mainland China[170].