Financial Performance - The Group's revenue for the year ended December 31, 2022, increased to approximately RMB 354 million, representing a growth of approximately 15.7% compared to 2021[12]. - The Group recorded a loss of approximately RMB 29 million for the year ended December 31, 2022, a significant improvement from a loss of approximately RMB 128 million in 2021[12]. - Revenue from POE umbrella products increased by approximately RMB 22 million, or 36.1%, from approximately RMB 61 million in 2021 to approximately RMB 83 million in 2022[13]. - Revenue from nylon umbrella products decreased by approximately RMB 49 million, or 40.2%, from approximately RMB 122 million in 2021 to approximately RMB 73 million in 2022[13]. - Revenue from umbrella parts products increased by approximately RMB 75 million, or 61.0%, from approximately RMB 123 million in 2021 to approximately RMB 198 million in 2022[14]. - Approximately 77% of the Group's total revenue for the year ended December 31, 2022, was generated from overseas customers[24]. - The Group's revenue increased from approximately RMB306 million for the year ended 31 December 2021 to approximately RMB354 million for the year ended 31 December 2022, representing an increase of approximately 15.7%[32]. - Domestic sales of POE umbrellas, nylon umbrellas, and umbrella parts accounted for approximately 23% of the Group's total revenue for the year ended 31 December 2022[29]. - Overseas sales of POE umbrellas, nylon umbrellas, and umbrella parts accounted for approximately 77% of the Group's total revenue for the year ended 31 December 2022[28]. Cost Management - Gross profit increased by approximately RMB8 million, or 29.6%, from approximately RMB27 million for the year ended 31 December 2021 to approximately RMB35 million for the year ended 31 December 2022[34]. - Selling and distribution expenses decreased by approximately RMB9 million or 29.0% from approximately RMB31 million for the year ended 31 December 2021 to approximately RMB22 million for the year ended 31 December 2022[36]. - Administrative expenses decreased by approximately RMB36 million, or 45%, from approximately RMB80 million for the year ended 31 December 2021 to approximately RMB44 million for the year ended 31 December 2022[43]. Business Strategy - The Group aims to shift its business focus from upstream manufacturing to downstream distribution and brand building to enhance margins and shareholder returns[20]. - The Group is exploring and developing new business opportunities and projects to diversify its operations[20]. - The Group's new business strategy focuses on shifting from upstream manufacturing to downstream distribution network and brand building[26]. - The Group aims to maintain 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[87]. - The Group's strategy includes exploring and developing new business opportunities and projects[88]. Financial Health - The Group's current ratio increased from 2.6 times as at 31 December 2021 to 2.9 times as at 31 December 2022[47]. - The Group's bank balances and cash amounted to approximately RMB41 million as at 31 December 2022, down from approximately RMB61 million as at 31 December 2021[46]. - Inventory as of December 31, 2022, was approximately RMB 132 million, with inventory turnover days decreasing from 254 days in 2021 to 149 days in 2022[54][58]. - Trade receivables increased to approximately RMB 149 million in 2022 from RMB 119 million in 2021, with average turnover days rising from 100 days to 138 days[55][59]. - Trade and bills payables rose to approximately RMB 59 million in 2022 from RMB 25 million in 2021, with average turnover days slightly decreasing from 52 days to 49 days[56][60]. - The Group's asset-liability ratio was approximately 31% as of December 31, 2022, down from 32% in 2021[51]. - The Group employed a total of 571 employees as of December 31, 2022, down from 800 employees in 2021[71]. Corporate Governance - The Board consists of four executive directors and three independent non-executive directors, ensuring a balance of power and independent insights[102]. - All directors confirmed full compliance with the securities trading standards as outlined in the listing rules during the year[98]. - The attendance of executive directors at board meetings was 100%, with all attending 9 out of 9 meetings held[113]. - Independent non-executive directors also maintained high attendance, with each attending 9 out of 9 board meetings[113]. - The company has established three board committees: Audit, Remuneration, and Nomination, to oversee various aspects of corporate governance[101]. - The company has adopted and complies with the corporate governance code, with some deviations noted regarding the roles of the chairman and CEO[101]. - The board reviews its governance practices regularly to ensure they remain appropriate and effective[105]. - The Company has appointed three independent non-executive Directors, representing more than one-third of the Board[119]. Risk Management - The Group faces risks related to raw material price fluctuations and potential labor shortages, which could impact operations and profitability[63][66]. - The Board believes that the risk management and internal control systems were reasonably effective and adequate for the year ended December 31, 2022[179]. - The Group's risk management strategies include risk retention and reduction, risk avoidance, risk sharing and diversification, and risk transfer[181]. - The management identified risks associated with the business by considering internal and external factors, assessing and prioritizing them based on impact and occurrence[180]. - The Group's risk management procedures are designed to mitigate potential losses from significant changes in the business environment[171]. Shareholder Engagement - Shareholders are encouraged to participate in general meetings, with notices sent at least 20 business days prior to meetings, allowing for direct communication with the Board[197]. - The Company promotes shareholder engagement by allowing inquiries and proposals to be made directly to the Board during meetings or via written notice[198].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 China Jicheng Holdings Limited 中國集成控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1027） 截至二零二二年十二月三十一日止年度 全年業績公告 財務摘要 － 收益增加約15.7%至約人民幣354百萬元（二零二一年：約人民幣306百萬元） － 毛利增加約29.6%至約人民幣35百萬元（二零二一年：約人民幣27百萬元） － 年內虧損約人民幣29百萬元（二零二一年：年內虧損約人民幣128百萬元） － 每股基本虧損約人民幣0.08分（二零二一年：每股基本虧損約人民幣42.76分） － 董事不建議派發截至二零二二年十二月三十一日止年度之末期股息（二零 二一年：無） ...

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 191,913,000, an increase of 34.2% compared to RMB 142,942,000 for the same period in 2021[4] - Gross profit for the period was RMB 24,679,000, representing a gross margin of 12.9%[4] - Loss before tax for the period was RMB 11,544,000, a significant improvement from a loss of RMB 27,548,000 in the same period last year[4] - Total comprehensive expense for the period was RMB 21,011,000, compared to RMB 28,777,000 in the previous year, indicating a reduction of 27.1%[4] - The company reported a basic and diluted loss per share of 4.42 cents for the period[4] - The loss for the period attributable to owners of the Company was RMB 14,131 for the six months ended June 30, 2022, compared to RMB 28,725 in 2021[43] - The basic and diluted loss per share for the six months ended June 30, 2022, was calculated based on a weighted average number of ordinary shares of 319,861, compared to 294,467 in 2021[47] Assets and Liabilities - Net current assets increased to RMB 264,468,000 as of June 30, 2022, up from RMB 215,237,000 at the end of 2021[7] - Total assets less current liabilities amounted to RMB 338,420,000, an increase from RMB 316,570,000 at the end of 2021[7] - The company’s total equity rose to RMB 338,056,000, compared to RMB 316,206,000 at the end of 2021[7] - Cash and bank balances increased significantly to RMB 47,346,000 from RMB 2,478,000 at the end of 2021[7] - The Group's trade and bills receivables as of June 30, 2022, totaled RMB 148,716, an increase from RMB 118,599 as of December 31, 2021, with receivables aged 0 to 90 days rising to RMB 76,975[57] - The aging analysis of trade and bills receivables showed an increase in receivables over 180 days to RMB 37,075 as of June 30, 2022, from RMB 13,432 at the end of 2021[57] - As of June 30, 2022, the company's trade and bills payables aged 0 to 90 days amounted to RMB 35,346,000, a significant increase from RMB 3,843,000 as of December 31, 2021[59] - The total trade and bills payables as of June 30, 2022, were RMB 48,807,000, compared to RMB 25,481,000 at the end of 2021, indicating a year-over-year increase of 91.5%[59] Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2022, was RMB 14,617, a significant improvement from RMB 69,410 in the same period of 2021[16] - The company generated RMB 52,931 from financing activities in the first half of 2022, compared to RMB 36,772 in the same period of 2021, reflecting an increase of approximately 43.8%[16] - Cash and cash equivalents as of June 30, 2022, amounted to RMB 47,346, a substantial increase from RMB 20,272 as of June 30, 2021[18] - The company experienced a net increase in cash and cash equivalents of RMB 51,891 for the six months ended June 30, 2022, compared to a net decrease of RMB 38,023 in the same period of 2021[17] - The total cash generated from investing activities was RMB 13,577 for the six months ended June 30, 2022, compared to a cash outflow of RMB 5,385 in the same period of 2021[16] Revenue Breakdown - Revenue from POE umbrellas was RMB 62,261,000 for the six months ended June 30, 2022, up from RMB 35,109,000 in 2021, indicating a growth of 77.4%[30] - Revenue from nylon umbrellas decreased to RMB 18,343,000 in 2022 from RMB 63,008,000 in 2021, reflecting a decline of 70.1%[30] - Revenue from external customers in Japan was RMB 50,504,000, slightly increasing from RMB 49,748,000 in 2021[33] - Revenue from external customers in Cambodia surged to RMB 85,208,000 in 2022, compared to RMB 31,899,000 in 2021, marking an increase of 167.5%[33] - Revenue from external customers in the PRC rose to RMB 47,922,000 in 2022 from RMB 38,284,000 in 2021, a growth of 25.5%[33] Operational Efficiency and Strategy - The company is focusing on improving operational efficiency and exploring new market opportunities to enhance future performance[4] - The Group operates in a single segment focused on the manufacturing and sale of umbrellas, with no segment assets or liabilities reported separately[22] - The Group's main products include POE umbrellas, nylon umbrellas, and umbrella parts, with a focus on expanding market presence[29] - The Group's strategy includes further expansion of branded umbrellas through intensified marketing activities in both domestic and overseas markets[100] - The Group plans to expand production capacity and enhance research and development capabilities to meet increasing demand in the umbrella market[104] Employee and Administrative Costs - The total staff costs for the six months ended June 30, 2022, amounted to RMB 32,571, an increase from RMB 29,062 in 2021, with salaries and allowances rising from RMB 20,470 to RMB 23,972[42] - Research and development expenses for the six months ended June 30, 2022, were RMB 9,063, up from RMB 5,997 in 2021, with employee costs for R&D activities approximately RMB 823,000[42][44] - Administrative expenses increased by approximately RMB 5 million, or 21.7%, from RMB 23 million to RMB 28 million, mainly due to increased R&D expenses[89] Share Capital and Dividends - As of January 1, 2022, the company's share capital was RMB 10,818, up from RMB 7,830 as of January 1, 2021, representing an increase of approximately 38.5%[9] - No dividends were paid, declared, or proposed during the reported period, consistent with 2021[49] - The company did not recommend any interim dividend for the period, consistent with the previous year[84] Corporate Governance - The company has adopted and complied with the Corporate Governance Code since the Listing Date, with a board comprising four executive directors and three independent non-executive directors[131] - The roles of chairman and chief executive officer are held by the same person, Mr. Huang, which the directors believe facilitates business strategy execution[131] - The Audit Committee, established on 23 January 2015, comprises three independent non-executive directors and has reviewed the financial reporting matters for the period[137] - The company has confirmed that all directors have complied with the Model Code for Securities Transactions since the Listing Date[133] - The Remuneration Committee was established on January 23, 2015, comprising three independent non-executive Directors[138] - The Nomination Committee was also established on January 23, 2015, with three independent non-executive Directors[139] Market Conditions and Risks - The operating environment remains challenging due to global economic sluggishness and the impact of COVID-19 on consumer confidence[104] - The Group may face risks related to fluctuations in raw material prices and potential labor shortages, which could adversely affect operations and profitability[92][94] Share Option Scheme - The Company adopted a Share Option Scheme on January 23, 2015, which will remain in force for ten years, aimed at rewarding eligible persons for their contributions and maintaining ongoing relationships[119] - The maximum number of shares that may be issued upon exercise of all options under the Share Option Scheme shall not exceed 10% of the shares in issue at the date of shareholders' approval[121] - The company granted 30,288,000 share options to employees on 12 May 2022, with an exercise price of HK$0.462[129] - A total of 49,100,000 share options were exercised during the period ended 30 June 2022, with a weighted average closing price of HK$0.560 before the exercise date[129] - As of 30 June 2022, the outstanding share options amounted to 37,768,000[129]

Financial Performance - The Group's revenue for the year ended December 31, 2021, decreased to approximately RMB 306 million, representing a decrease of approximately 11.0% compared to 2020[13]. - The Group recorded a loss of approximately RMB 128 million for the year ended December 31, 2021, compared to a loss of approximately RMB 34 million for the year ended December 31, 2020[13]. - Revenue from POE umbrella products decreased by approximately RMB 5 million, or 7.6%, from approximately RMB 66 million in 2020 to approximately RMB 61 million in 2021[13]. - Revenue from nylon umbrella products decreased by approximately RMB 27 million, or 18.1%, from approximately RMB 149 million in 2020 to approximately RMB 122 million in 2021[13]. - Revenue from umbrella parts products decreased by approximately RMB 6 million, or 4.7%, from approximately RMB 129 million in 2020 to approximately RMB 123 million in 2021[13]. - The Group's total revenue decreased from approximately RMB344 million for the year ended 31 December 2020 to approximately RMB306 million for the year ended 31 December 2021, representing a decrease of approximately 11.0% due to the impact of the pandemic[24]. - The cost of sales decreased from approximately RMB292 million to approximately RMB279 million, representing a decrease of approximately 4.5%, in line with the decrease in revenue[24]. - Gross profit decreased by approximately RMB26 million, or 49.1%, from approximately RMB53 million to approximately RMB27 million, with the gross profit margin decreasing from approximately 15.4% to approximately 8.8%[24]. - The Group recorded other income and net loss of approximately RMB10 million for the year ended 31 December 2021, compared to a net gain of approximately RMB1 million for the previous year, primarily due to inventory write-offs of approximately RMB14 million from flooding[24]. - Selling and distribution expenses increased by approximately RMB10 million or 47.6%, from approximately RMB21 million to approximately RMB31 million, mainly due to increased promotion expenses[24]. Business Strategy - The Group 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[16]. - The Group plans to shift its business focus from upstream manufacturing to downstream distribution network and brand building to enhance margins and shareholder returns[17]. - The Group is exploring and developing new business opportunities and projects to diversify its business[17]. - The Group's new business strategy focuses on shifting from upstream manufacturing to downstream distribution and brand building to promote higher-margin branded umbrellas[21]. - The Group is actively exploring potential business opportunities and projects for diversification[55]. Operational Metrics - Approximately 73% of the Group's total revenue for the year ended 31 December 2021 was generated from overseas customers, while domestic customers accounted for approximately 27%[21]. - As at 31 December 2021, inventories were approximately RMB128 million, down from approximately RMB260 million in 2020, with inventory turnover days decreasing from approximately 322 days to approximately 254 days[30]. - Trade receivables increased to approximately RMB119 million in 2021 from approximately RMB49 million in 2020, with average trade receivables turnover days decreasing from approximately 120 days to approximately 100 days[32]. - Trade and bills payables decreased to approximately RMB25 million in 2021 from approximately RMB55 million in 2020, with average turnover days slightly decreasing from approximately 54 days to approximately 52 days[32]. - As at 31 December 2021, the Group's bank balances and cash amounted to approximately RMB61 million, down from approximately RMB115 million in 2020[27]. - The current ratio decreased from 3.1 times in 2020 to 2.6 times in 2021, while the gearing ratio was approximately 32% in 2021 compared to approximately 34% in 2020[27]. - Research and development expenses increased by approximately RMB26 million during the year ended 31 December 2021[27]. Governance and Compliance - The Board consists of four executive directors and three independent non-executive directors, ensuring a balanced governance structure[73]. - All directors are required to participate in continuous professional development to enhance their knowledge and skills, confirming their commitment to corporate governance[85]. - The Company has appointed three independent non-executive directors, representing more than one-third of the Board, ensuring compliance with listing rules[87]. - Each independent non-executive director has confirmed their independence, and the Company considers all of them to be independent[88]. - The Board has established three committees: Audit Committee, Nomination Committee, and Remuneration Committee, each with defined terms of reference[89]. - The attendance of executive directors at board meetings was 100%, with all attending four out of four meetings held[81]. - The Company has arranged appropriate insurance coverage for potential legal actions against directors and officers[82]. - The Board is responsible for monitoring the Group's operating and financial performance, as well as corporate governance standards[73]. - The Company has received confirmations from all directors regarding their participation in continuous professional development activities[90]. Risk Management - The Board is responsible for evaluating and determining the nature and extent of risks in achieving the Group's strategic objectives, ensuring effective risk management and internal control systems are in place[126]. - The Audit Committee continuously reviews significant risk management and internal controls, considering the adequacy of resources and qualifications of staff involved in accounting and financial reporting[127]. - The Group has established risk management procedures to address significant business risks, with annual reviews conducted by the Board to respond to changes in the business environment[129]. - The Group faced risks related to fluctuations in raw material prices and unstable supply, which could negatively impact operations and profitability[37]. - The Group's sales are primarily made in US dollars, RMB, and Japanese Yen, exposing it to exchange rate risks[37]. Environmental, Social, and Governance (ESG) - The Group has implemented energy-saving projects and improved equipment layout and operational processes to reduce redundant energy consumption during production[180]. - The Group's factories strictly adhere to ISO 14001 environmental management standards to maximize resource efficiency[177]. - The Group has stopped using plastic bags for individual products since 2019 to minimize packaging waste[192]. - The Board of Directors is committed to establishing effective ESG risk management mechanisms and reviews ESG policies annually[176]. - The Group focuses on efficient use of raw materials and packaging materials as key ESG topics[176]. - The Group has implemented a "Water and Electricity Management System" in its factories since 2016 to promote resource conservation among employees[188]. - The Group continuously monitors and analyzes energy consumption data to improve utilization of energy resources[189]. - The Group's umbrella manufacturing business is closely related to environmental protection, which is one of its core values[198]. - The Group strictly complies with laws and regulations regarding air and greenhouse gas emissions[198]. - In 2021, the Group did not commit any non-compliance with relevant environmental regulations[199]. - The Group has implemented numerous energy-saving projects to achieve emission reduction, including replacing high emission equipment[198]. - Production operations in the Group's factories are completed in accordance with ISO 14001 standard[198].

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 142,942,000, a decrease of 29.5% compared to RMB 203,005,000 in the same period of 2020[3] - Gross profit for the period was RMB 19,850,000, down from RMB 29,589,000 in the previous year, reflecting a gross margin of 13.9%[3] - Loss for the period attributable to owners of the Company was RMB 28,725,000, compared to a loss of RMB 4,084,000 in the same period of 2020[3] - Total comprehensive loss for the period was RMB 28,777,000, significantly higher than RMB 4,908,000 in the prior year[3] - Basic and diluted loss per share was RMB 9.75 cents, compared to RMB 2.16 cents in the previous year[3] - The decline in financial performance was mainly due to decreased sales volume and increased selling and distribution expenses[82] - The gross profit decreased by approximately RMB10 million, or 33.3%, from approximately RMB30 million for the first half of 2020 to RMB20 million for the same period in 2021[90] - The Group's gross profit margin decreased from approximately 14.8% for the first half of 2020 to 14.0% for the Period[90] Revenue Breakdown - Revenue from POE umbrellas was RMB 35,109,000, down 37.9% from RMB 56,552,000 in 2020[47] - Revenue from nylon umbrellas and umbrella parts was RMB 63,008,000, an increase of 29.4% from RMB 48,645,000 in 2020[47] - Revenue from external customers in Japan decreased to RMB 49,748,000 from RMB 75,491,000, a decline of 34.2%[50] - Revenue from external customers in the PRC increased to RMB 38,284,000 from RMB 18,225,000, a growth of 109.5%[50] Assets and Liabilities - Current assets as of June 30, 2021, totaled RMB 470,904,000, a slight decrease from RMB 476,371,000 at the end of 2020[7] - Current liabilities increased to RMB 163,481,000 from RMB 154,971,000 at the end of 2020, primarily due to an increase in bank borrowings[7] - Net assets as of June 30, 2021, were RMB 414,983,000, down from RMB 426,225,000 at the end of 2020[7] - Trade and bills receivables as of June 30, 2021, totaled RMB111,322,000, significantly increasing from RMB49,433,000 as of December 31, 2020[71] - Trade and bills payables as of June 30, 2021, were RMB39,735,000, a decrease from RMB55,355,000 as of December 31, 2020[73] Cash Flow - Net cash used in operating activities was RMB 69,410,000 for the six months ended June 30, 2021, compared to a net cash generated of RMB 171,446,000 in the same period of 2020[35] - The net cash generated from financing activities was RMB 36,772,000 for the six months ended June 30, 2021, contrasting with a net cash used of RMB 183,302,000 in the same period of 2020[35] - As of June 30, 2021, cash and cash equivalents amounted to RMB 20,272,000, a decrease from RMB 58,319,000 as of January 1, 2021[36] Operational Strategy - The Company is focusing on expanding its market presence and enhancing its product offerings to drive future growth[4] - The Group is exploring and developing new business opportunities and projects to diversify its operations[81] - The Group aims to strengthen its competitive advantages and expand production capacity to meet increasing demand in the umbrella market[122] Employee and Administrative Costs - Total staff costs for the period were RMB 29,273,000, down 11.8% from RMB 33,009,000 in 2020[61] - Administrative expenses increased by approximately RMB5 million, or 27.8%, from approximately RMB18 million for the first half of 2020 to RMB23 million for the Period[93] Share Capital and Governance - The issued and fully paid ordinary shares increased to 302,880,000 as of June 30, 2021, from 227,160,000 at the beginning of the reporting period[76] - The Company adopted a Share Option Scheme on January 23, 2015, which will remain in force for ten years from the Listing Date[141] - The Audit Committee, established on January 23, 2015, comprises three independent non-executive Directors and has reviewed the financial reporting matters for the period[159] Market Conditions - The global economic environment remains challenging, influenced by the trade war between China and the U.S. and the impact of COVID-19 on consumer confidence and economic performance[125] - The Group may face risks related to fluctuations in raw material prices and unstable supply, which could negatively impact operations and profitability[102]

[Chairman's Statement](index=5&type=section&id=Chairman%27s%20Statement) Chairman Mr. Huang Wenji reported a **38.5% revenue decrease** to **RMB 344 million** in 2020, with annual loss expanding to **RMB 34 million**, and a strategic shift towards downstream distribution and brand building 2020 Fiscal Year Performance Overview | Indicator | 2020 (RMB) | 2019 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | 344 million | 559 million | -38.5% | | **Annual Loss** | 34 million | 16 million | +112.5% | | POE Umbrella Revenue | 66 million | 120 million | -45.0% | | Nylon Umbrella Revenue | 149 million | 179 million | -16.8% | | Umbrella Components Revenue | 129 million | 260 million | -50.4% | - The Board does not recommend a final dividend for the year ended December 31, 2020[11](index=11&type=chunk) - Future strategy shifts from upstream manufacturing to downstream distribution and brand building to promote higher-margin branded umbrellas and create greater shareholder value[14](index=14&type=chunk)[16](index=16&type=chunk) - The Group aims to maintain its leading position in the Japanese market, develop its own brands in the Chinese market, and expand market share in existing markets like Hong Kong, Cambodia, and South Korea[13](index=13&type=chunk)[16](index=16&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=7&type=section&id=Business%20Review) The Group's core business involves manufacturing and selling POE umbrellas, nylon umbrellas, and related components, primarily for export (84% of total revenue) to Japan, Hong Kong, and South Korea, with a strategic shift towards downstream distribution and brand building - The Group primarily engages in manufacturing and sales of POE umbrellas, nylon umbrellas, and components like plastic fabric and central shafts[18](index=18&type=chunk) - In 2020, export sales accounted for approximately **84% of total revenue**, mainly to Japan, Hong Kong, and South Korea; domestic market sales accounted for approximately **16%**[19](index=19&type=chunk)[20](index=20&type=chunk) - The new business strategy shifts focus from upstream manufacturing to downstream distribution and brand building to promote higher-margin branded umbrellas[21](index=21&type=chunk)[24](index=24&type=chunk) [Financial Review](index=8&type=section&id=Financial%20Review) In FY2020, revenue decreased by **38.5%** to **RMB 344 million**, with annual loss expanding to **RMB 34 million** due to revenue decline and asset impairment, while liquidity improved significantly FY2020 Key Financial Indicators Changes | Indicator | 2020 (RMB) | 2019 (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | **Revenue** | 344 million | 559 million | -38.5% | | **Gross Profit** | 53 million | 66 million | -19.7% | | **Gross Margin** | 15.3% | 11.8% | +3.5pp | | **Annual Loss** | 34 million | 16 million | +112.5% | | **Finance Costs** | 4 million | 11 million | -63.6% | - The primary reasons for the expanded annual loss were (i) reduced revenue due to the pandemic; and (ii) recognition of approximately **RMB 23 million** in impairment losses on property, plant and equipment and right-of-use assets[35](index=35&type=chunk) Liquidity and Financial Resources (as of year-end) | Indicator | 2020 | 2019 | | :--- | :--- | :--- | | **Bank Balances and Cash** | 115 million RMB | 82 million RMB | | **Short-term Bank Borrowings** | 77 million RMB | 203 million RMB | | **Current Ratio** | 3.4 times | 2.3 times | | **Debt-to-Asset Ratio** | 34% | 56% | [Key Operating Metrics](index=10&type=section&id=Key%20Operating%20Metrics) In 2020, the Group's operating efficiency metrics showed significant changes, with inventory turnover days increasing to 323 days due to slower sales, while trade receivables turnover days decreased to 120 days, and trade payables turnover days increased to 54 days Changes in Operating Turnover Days | Indicator | 2020 (days) | 2019 (days) | | :--- | :--- | :--- | | **Inventory Turnover Days** | 323 | 154 | | **Trade Receivables Turnover Days** | 120 | 135 | | **Trade Payables and Bills Payable Turnover Days** | 54 | 25 | [Principal Risks and Uncertainties](index=10&type=section&id=Principal%20Risks%20and%20Uncertainties) The Group faces key operational risks including reliance on major customers, exposure to political and economic fluctuations and foreign exchange rate changes in key markets, and potential negative impacts from raw material price volatility, supply instability, or rising labor costs - Loss of major customers could significantly and adversely impact the Group's business, financial condition, and operating results[40](index=40&type=chunk) - The Group faces risks related to sales in Japan, China, and other overseas markets, such as political and economic instability and foreign currency exchange rate fluctuations[43](index=43&type=chunk) - Raw material price volatility, supply instability, and labor shortages or rising costs are other major risks faced by the Group[43](index=43&type=chunk) [Use of Proceeds](index=12&type=section&id=Use%20of%20Proceeds) The company reallocated unutilized global offering proceeds to align with its new strategy, with **RMB 37 million** unutilized as of end-2020, primarily for new brand acquisition and brand promotion Use of Net Proceeds (as of December 31, 2020) | Purpose | Revised Allocation (million RMB) | Unutilized Amount as of End 2020 (million RMB) | | :--- | :--- | :--- | | Enhancing Brand Awareness and Promotion | 27.2 | 7.3 | | Acquisition of New Brand Names and Investment in Trading Companies | 36.9 | 29.7 | | **Total** | **106.0** | **37.0** | - The remaining approximately **RMB 7.3 million** for brand promotion is expected to be fully utilized by December 31, 2021[55](index=55&type=chunk)[57](index=57&type=chunk) - The remaining approximately **RMB 29.7 million** for acquiring new brands and investing in trading companies is expected to be fully utilized by December 31, 2022[61](index=61&type=chunk)[62](index=62&type=chunk) [Future Prospects](index=16&type=section&id=Future%20Prospects) The Group aims to maintain its leading position in the Japanese umbrella market, promote its own brands in China, and expand market share in existing markets like Hong Kong, Cambodia, and South Korea, by continuing its strategic shift towards downstream distribution and brand building and exploring new business opportunities - The Group's primary goal is to maintain and strengthen its leading position in the Japanese market and promote its own branded umbrellas in the Chinese market[66](index=66&type=chunk)[69](index=69&type=chunk) - The Group will shift its business focus from upstream manufacturing to downstream distribution networks and brand building to promote higher-margin branded umbrellas, aiming for better returns for shareholders[67](index=67&type=chunk)[69](index=69&type=chunk) - To achieve business diversification, the Group is actively exploring and developing new business opportunities and projects[67](index=67&type=chunk) [Corporate Governance Report](index=17&type=section&id=Corporate%20Governance%20Report) [Corporate Governance Practices](index=17&type=section&id=Corporate%20Governance%20Practices) The company maintains high corporate governance standards, with two deviations from the code: combined Chairman and CEO roles, and independent non-executive directors' absence from the 2020 AGM; the Board oversees risk management and internal controls - The company deviates from the Corporate Governance Code as the roles of Chairman and Chief Executive Officer are held by the same person (Mr. Huang Wenji), which the Board believes facilitates business strategy execution and decision-making[72](index=72&type=chunk)[73](index=73&type=chunk) - Another deviation is that three independent non-executive directors were unable to attend the Annual General Meeting on June 30, 2020, due to other commitments[74](index=74&type=chunk) - The Board is responsible for evaluating and determining risks, ensuring the establishment and maintenance of appropriate and effective risk management and internal control systems; in 2020, the company engaged an external consulting firm for internal audit functions and found no material deficiencies[139](index=139&type=chunk)[150](index=150&type=chunk) [Board and Committee Attendance](index=20&type=section&id=Board%20and%20Committee%20Attendance) In FY2020, the Board held 6 meetings with full attendance from all directors, and all members fully attended their respective audit, remuneration, and nomination committee meetings; however, most executive directors and some independent non-executive directors were absent from the three general meetings 2020 Board Meeting Attendance (Attended/Held) | Director Name | General Meetings | Board Meetings | Audit Committee | Remuneration Committee | Nomination Committee | | :--- | :--- | :--- | :--- | :--- | :--- | | **Executive Directors** | | | | | | | Huang Wenji | 0/3 | 6/6 | N/A | N/A | N/A | | Yang Guang | 0/3 | 6/6 | N/A | N/A | N/A | | Lin Zhenshuang | 0/3 | 6/6 | N/A | N/A | N/A | | Zhong Jianxiong | 1/3 | 6/6 | N/A | N/A | N/A | | **Independent Non-Executive Directors** | | | | | | | Cao Siwei | 2/3 | 6/6 | 2/2 | 1/1 | 1/1 | | Yang Xuetai | 0/3 | 6/6 | 2/2 | 1/1 | 1/1 | | Li Jieying | 0/3 | 6/6 | 2/2 | 1/1 | 1/1 | [Environmental, Social and Governance Report](index=33&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) [ESG Report](index=33&type=section&id=ESG%20Report) This report outlines the company's 2020 ESG performance, detailing environmental efforts under ISO 14001, social compliance with labor laws and employee training, and governance practices including supply chain management and community donations 2020 Environmental Performance Indicators | Indicator | 2020 Data | | :--- | :--- | | **Total Energy Consumption** | Approx. 6,627 MWh equivalent | | **Total Water Consumption** | 123,287 cubic meters | | **Total GHG Emissions (Scope 1+2+3)** | Approx. 4,030 tonnes of CO2 equivalent | | **Non-Hazardous Waste Generated** | 240 tonnes | - As of end-2020, the Group had **1,062 employees** in China, with a male-to-female ratio of approximately **1.3:1**; **457 employees** received training during the year, representing a training ratio of **43%**[223](index=223&type=chunk)[231](index=231&type=chunk) - The Group strictly adheres to labor standards, with no instances of child or forced labor reported during the period[235](index=235&type=chunk)[238](index=238&type=chunk) - During the year, the Group donated a total of **RMB 410,000** to various charitable organizations, supporting community culture, education, and health development[255](index=255&type=chunk)[256](index=256&type=chunk) [Biographical Details of Directors and Senior Management](index=42&type=section&id=Biographical%20Details%20of%20Directors%20and%20Senior%20Management) [Directors and Senior Management Biographies](index=42&type=section&id=Directors%20and%20Senior%20Management%20Biographies) This section details the backgrounds of the company's Board members and senior management, including executive directors led by founder and Chairman Mr. Huang Wenji, and independent non-executive directors with expertise in accounting, industrial design, and financial administration, along with key senior management - Executive Directors include: **Mr. Huang Wenji** (Chairman, Founder), **Mr. Yang Guang** (Deputy General Manager, responsible for production), **Mr. Lin Zhenshuang** (International Business Department Manager, responsible for sales), and **Mr. Zhong Jianxiong** (responsible for strategic planning and finance)[258](index=258&type=chunk)[259](index=259&type=chunk)[260](index=260&type=chunk)[261](index=261&type=chunk) - Independent Non-Executive Directors include: **Mr. Cao Siwei** (accounting background), **Mr. Yang Xuetai** (art and design background), and **Ms. Li Jieying** (finance and administration background)[266](index=266&type=chunk) - Senior management includes **Mr. Liu Liangping**, Research and Development Department Manager[266](index=266&type=chunk) [Report of the Directors](index=44&type=section&id=Report%20of%20the%20Directors) [Directors' Report](index=44&type=section&id=Directors%27%20Report) This report outlines the Group's principal business and financial position for FY2020, noting high customer concentration (top five clients accounted for **73%** of total revenue), no recommended annual dividend, and details on directors' and major shareholders' equity interests Major Customer and Supplier Concentration | Concentration Indicator | 2020 | 2019 | | :--- | :--- | :--- | | **Largest Customer as % of Total Revenue** | 20% | 18.1% | | **Top Five Customers as % of Total Revenue** | 73% | 59.4% | | **Largest Supplier as % of Total Purchases** | 9% | 35.0% | | **Top Five Suppliers as % of Total Purchases** | 25% | 53.4% | - The Board does not recommend a final dividend for the year ended December 31, 2020[291](index=291&type=chunk) - On May 14, 2020, the company granted share options to several directors and employees under the share option scheme, with an adjusted exercise price of **HKD 0.464 per share** after share consolidation[317](index=317&type=chunk)[361](index=361&type=chunk) - During the year, neither the company nor any of its subsidiaries purchased, redeemed, or sold any of the company's listed securities[301](index=301&type=chunk) [Independent Auditor's Report](index=58&type=section&id=Independent%20Auditor%27s%20Report) [Auditor's Report](index=58&type=section&id=Auditor%27s%20Report) Auditor Kaiyuan Xinde Certified Public Accountants Limited issued an unmodified opinion on the company's 2020 consolidated financial statements, highlighting key audit matters regarding contingent consideration and asset impairment assessment - The auditor issued an **unmodified opinion**, stating that the consolidated financial statements fairly present the Group's financial position and performance[374](index=374&type=chunk)[377](index=377&type=chunk) - Key Audit Matter One: Fair value measurement of contingent consideration payable, which involves significant management judgment and reliance on independent external valuation[379](index=379&type=chunk)[382](index=382&type=chunk) - Key Audit Matter Two: Impairment of property, plant and equipment and right-of-use assets, which involves significant management judgment on key assumptions such as future revenue, operating profit margins, and discount rates[379](index=379&type=chunk)[385](index=385&type=chunk) [Consolidated Financial Statements](index=65&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=65&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the year ended December 31, 2020, the Group reported revenue of **RMB 344 million**, a **38.5% decrease**, with gross profit at **RMB 52.8 million**, down **19.7%**, and annual loss expanding to **RMB 34.31 million** Consolidated Statement of Profit or Loss Summary (RMB thousands) | Item | 2020 | 2019 | | :--- | :--- | :--- | | **Revenue** | 344,390 | 558,599 | | **Gross Profit** | 52,795 | 65,861 | | **Loss Before Tax** | (31,823) | (11,441) | | **Loss for the Year Attributable to Owners of the Company** | (34,312) | (16,247) | | **Basic Loss Per Share (RMB cents)** | (17.78) | (8.58) | [Consolidated Statement of Financial Position](index=66&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of December 31, 2020, the Group's total assets were **RMB 582 million**, total liabilities decreased to **RMB 155 million**, and total equity stood at **RMB 426 million**, indicating a stable financial position Consolidated Statement of Financial Position Summary (RMB thousands) | Item | December 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Non-current Assets** | 105,238 | 134,665 | | **Current Assets** | 476,371 | 582,873 | | **Total Assets** | 581,609 | 717,538 | | **Current Liabilities** | 154,971 | 250,407 | | **Non-current Liabilities** | 413 | 15,031 | | **Total Liabilities** | 155,384 | 265,438 | | **Total Equity** | 426,225 | 452,100 | [Consolidated Statement of Changes in Equity](index=68&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) As of end-2020, the Group's total equity was **RMB 426 million**, a decrease of approximately **RMB 25.88 million** from the beginning of the year, primarily due to the **RMB 34.31 million** loss for the year, partially offset by new share issuance and share option grants - Total equity decreased from **RMB 452.1 million** at the beginning of the year to **RMB 426.2 million** at year-end[423](index=423&type=chunk) - Key factors in equity changes include: an annual loss of **RMB 34.31 million**, an increase of **RMB 6.38 million** from new share issuance, an increase of **RMB 1.8 million** from share option grants, and **RMB 0.28 million** from capital contribution by shareholders[423](index=423&type=chunk) [Consolidated Statement of Cash Flows](index=70&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) In 2020, the Group generated **RMB 155 million** in net cash from operating activities, a significant improvement, with net cash outflow from investing activities of **RMB 0.87 million**, and from financing activities of **RMB 122 million**, resulting in a net increase of **RMB 32.38 million** in cash and cash equivalents Consolidated Statement of Cash Flows Summary (RMB thousands) | Item | 2020 | 2019 | | :--- | :--- | :--- | | **Net Cash From Operating Activities** | 155,452 | 9,351 | | **Net Cash (Used In)/From Investing Activities** | (866) | 492 | | **Net Cash Used In Financing Activities** | (122,209) | (1,656) | | **Net Increase in Cash and Cash Equivalents** | 32,377 | 8,187 | | **Cash and Cash Equivalents at End of Period** | 58,319 | 26,151 | [Notes to the Consolidated Financial Statements](index=72&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) This section provides detailed explanations and supplementary information for the consolidated financial statements, covering company information, accounting policies, key judgments and estimates, financial data breakdowns, related party transactions, and subsidiary acquisition details - Note 7 discloses revenue breakdown by product category, with **nylon umbrellas** being the largest revenue source, accounting for approximately **43%** of total revenue[729](index=729&type=chunk) - Note 8 discloses revenue by geographical region, with **Cambodia, Japan, and China** being the top three markets, contributing approximately **38%, 33%, and 16%** of revenue respectively[734](index=734&type=chunk) - Note 31 details the acquisition of Jinjiang Jingting Trading Co., Ltd. in 2019, including consideration, net assets acquired, and goodwill generated[908](index=908&type=chunk)[911](index=911&type=chunk)[916](index=916&type=chunk) [Financial Summary](index=173&type=section&id=Financial%20Summary) [Five-Year Financial Summary](index=173&type=section&id=Five-Year%20Financial%20Summary) This section provides a summary of the Group's key financial data for the past five fiscal years (2016-2020), showing a continuous decline in revenue since 2016, consecutive losses in 2019 and 2020, and a decrease in total assets and net assets over the last two years Five-Year Performance Trend (RMB thousands) | Year | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenue** | 344,390 | 558,599 | 521,186 | 538,264 | 603,985 | | **(Loss)/Profit Before Tax** | (31,823) | (11,441) | 25,260 | 6,705 | 13,514 | Five-Year Assets and Liabilities Trend (RMB thousands) | Year | 2020 | 2019 | 2018 | 2017 | 2016 | | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | 581,609 | 717,538 | 701,426 | 681,201 | 713,292 | | **Net Assets** | 426,225 | 452,100 | 461,204 | 440,586 | 430,983 |

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].