Financial Performance - Revenue for the six months ended June 30, 2024, increased by approximately RMB 46.7 million or 4.4% to approximately RMB 1,115.3 million compared to the same period in 2023[1] - Gross profit for the same period increased by approximately RMB 2.4 million or 1.2% to approximately RMB 210.2 million, while the gross margin decreased by approximately 0.6 percentage points to about 18.8%[1] - Net profit attributable to equity shareholders for the six months ended June 30, 2024, decreased by approximately RMB 23.5 million or 46.9% to approximately RMB 26.6 million compared to the same period in 2023[1] - Basic earnings per share for the same period were approximately RMB 0.065, a decrease of approximately RMB 0.064 or 49.6% year-on-year[1] - Total comprehensive income for the six months ended June 30, 2024, was RMB 33.8 million, down from RMB 41.6 million in the same period of 2023[3] - Operating profit for the six months ended June 30, 2024, was RMB 67.5 million, compared to RMB 55.5 million in the same period of 2023[2] - The company reported a total pre-tax profit of RMB 43,600 thousand for the six months ended June 30, 2024, compared to RMB 49,775 thousand in the same period of 2023[20] - Other operating income increased by approximately RMB 21.3 million or 85.9% to approximately RMB 46.1 million in the first half of 2024, primarily due to increased interest income and government subsidies[60] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 3,686.6 million, compared to RMB 3,598.9 million as of December 31, 2023[6] - The company's net asset value increased to RMB 2,859.8 million as of June 30, 2024, from RMB 2,738.6 million as of December 31, 2023[6] - The total equity as of June 30, 2024, was RMB 2,859,849,000, up from RMB 2,738,573,000 as of January 1, 2024, showing an increase of approximately 4.4%[6] - The total liabilities increased to approximately RMB 1,760,277,000, up 16.6% from RMB 1,509,198,000 as of December 31, 2023[76] - The asset-liability ratio increased to 38% as of June 30, 2024, compared to 36% as of December 31, 2023[76] Revenue Segments - Revenue from digital technology and digital security for the six months ended June 30, 2024, was RMB 78,037,000, an increase from RMB 75,765,000 in 2023, reflecting a growth of approximately 3.4%[14] - Revenue from wireless communication for the six months ended June 30, 2024, was RMB 969,251,000, a decrease from RMB 992,826,000 in 2023, indicating a decline of about 2.4%[14] - The new energy and services segment generated revenue of approximately RMB 68.0 million in the first half of 2024 from solar sales, marking a significant contribution to the company's diversified revenue streams[56] - The digital technology and digital security segment recorded revenue of approximately RMB 78.0 million in the first half of 2024, with customized chip services contributing RMB 49.7 million[78] Expenses and Costs - Selling and distribution expenses rose by approximately RMB 11.4 million or 20.7% to approximately RMB 66.4 million in the first half of 2024, driven by increased salary expenses and transportation costs[61] - Administrative expenses increased by approximately RMB 21.8 million or 76.8% to approximately RMB 50.2 million in the first half of 2024, mainly due to the consolidation of administrative expenses from the acquisition of Zhongguang New Energy[62] - Research and development expenses rose to RMB 72,184 thousand in the first half of 2024, up from RMB 54,455 thousand in the same period of 2023, marking an increase of 32.5%[25] - Interest expenses surged by approximately RMB 18.2 million or 319.3% to approximately RMB 23.9 million in the first half of 2024, primarily due to bank loan interest related to the acquisition of Zhongguang New Energy[65] Shareholder and Dividend Information - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2024[1] - The company did not propose or declare any interim dividends for the six months ended June 30, 2024, and June 30, 2023[28] - The company has proposed not to distribute any dividends for the six months ending June 30, 2024[92] Acquisitions and Investments - The company completed the acquisition of Zhejiang Zhongguang New Energy Technology Co., Ltd. by December 31, 2023, leading to a restructuring of its reportable segments[16] - The acquisition of Nanjing Zhangyu was completed on July 17, 2024, allowing the company to indirectly own 100% of its equity, which will not constitute a continuing connected transaction under the listing rules[50] - The company entered into a share acquisition agreement on May 20, 2024, to acquire the remaining 49% equity of Nanjing Zhangyu and Shanghai Zhangyu Information Technology Co., Ltd. for a total consideration of RMB 522 million[96] Operational Developments - The company is focused on expanding its operations in digital technology, digital security, and renewable energy services, particularly in solar power production and sales[9][13] - The company continues to develop new technologies and products in the semiconductor and digital security sectors, aiming to enhance its market position[9][13] - The company has established an employee equity incentive plan to motivate key employees for sustainable development[95] Market and Economic Outlook - The group anticipates continued economic growth in China due to strong macroeconomic policies, creating numerous investment opportunities during the economic transition[82] - The group expects that the diversification of its business and synergy among its segments will provide a solid foundation for stable and sustainable development, creating greater value for shareholders[82] Compliance and Governance - The company has complied with all provisions of the corporate governance code during the six months ending June 30, 2024[90] - The independent non-executive directors have deemed the terms of the service contract fair and reasonable, aligning with the interests of the company and its shareholders[45]

Financial Statements and Notes - The company's property, plant, and equipment details for the year are provided in Note 15 of the financial statements[2] - The company's reserves and consolidated equity changes are detailed in Note 33 and the consolidated statement of changes in equity[3] - The company's bank loan details as of December 31, 2023, are provided in Note 29 of the financial statements[15] - The company's retirement plan details are disclosed in the financial statement notes[164] Shareholder and Equity Information - Cui Wei beneficially owns 100% of the issued share capital of Jin Yong Industrial Co., Ltd., which holds approximately 28.06% of the company's total issued share capital[8] - The company's major shareholder, Jin Yong, holds 108,868,662 ordinary shares, representing approximately 28.06% of the company's issued share capital[10] Employee and Workforce Information - The company had 1,095 full-time employees as of December 31, 2023, compared to 936 in 2022[19] - The company has no significant disputes with employees or difficulties in hiring and retaining experienced or technical staff[20] Environmental and Certification Information - The company has passed the OHSAS 18000 environmental system audit and has effective monitoring of water, electricity, and raw material usage[21] - The company's main operating subsidiary, Jiangsu Hengxin Technology Co., Ltd., obtained ISO 14001:2004 environmental management system certification in 2007[21] Audit and Financial Reporting - The company's independent auditor, KPMG, has been reappointed and will be proposed for reappointment at the upcoming annual general meeting[25] - The company's audit committee communicates with auditors on audit planning, significant audit findings, and internal control deficiencies[40] - The company's key audit matters are determined based on professional judgment and are disclosed in the auditor's report unless prohibited by law or regulation[41] - The company's financial statements are prepared on a going concern basis, with the board of directors responsible for assessing the company's ability to continue as a going concern[59] - The company's financial statements are prepared in accordance with International Financial Reporting Standards, with management making judgments and estimates that could affect the reported amounts of assets, liabilities, income, and expenses[133] Revenue and Profit Information - Revenue for 2023 increased to RMB 2,255,903 thousand, up 10.6% from RMB 2,039,583 thousand in 2022[92] - Gross profit rose to RMB 434,698 thousand in 2023, a 15.8% increase from RMB 375,525 thousand in 2022[92] - Operating profit surged to RMB 156,517 thousand in 2023, a 76.2% jump from RMB 88,834 thousand in 2022[92] - Net profit attributable to equity shareholders grew to RMB 69,702 thousand in 2023, up 9.6% from RMB 63,602 thousand in 2022[92] - Revenue for the fiscal year 2023 was RMB 2,255,903 thousand, with a gross margin of 19.2%[179] - Revenue from regions outside China accounted for 5.1% of total revenue, amounting to RMB 115,094 thousand[179] - Profit before tax for the fiscal year 2023 was RMB 125,532 thousand[179] - Non-controlling interests for the fiscal year 2023 were RMB -34,473 thousand[179] - Profit attributable to equity shareholders of the company for the fiscal year 2023 was RMB 69,702 thousand[179] - Revenue for the fiscal year 2023 reached 125.5 million[198] - Pre-tax profit for the fiscal year 2023 was 613 million[198] - Net profit attributable to equity shareholders for the fiscal year 2023 was 25 million[198] - Gross profit margin for the fiscal year 2023 was 6.7%[198] - Net profit margin attributable to equity shareholders for the fiscal year 2023 was 5%[198] - Revenue growth from fiscal year 2019 to 2023 increased from 113.5 million to 125.5 million[198] - Pre-tax profit growth from fiscal year 2019 to 2023 increased from 50 million to 613 million[198] - Net profit attributable to equity shareholders growth from fiscal year 2019 to 2023 increased from 0 to 25 million[198] - Gross profit margin growth from fiscal year 2019 to 2023 increased from 3.4% to 6.7%[198] - Net profit margin attributable to equity shareholders growth from fiscal year 2019 to 2023 increased from 0% to 5%[198] Assets and Liabilities - Total assets minus current liabilities increased to RMB 3,598,940 thousand in 2023, up from RMB 1,909,841 thousand in 2022[70] - Net current assets rose to RMB 1,868,833 thousand in 2023, compared to RMB 1,444,763 thousand in 2022[70] - Trade and other payables increased to RMB 453,042 thousand in 2023 from RMB 387,960 thousand in 2022[70] - Bank loans under current liabilities decreased to RMB 176,543 thousand in 2023 from RMB 228,634 thousand in 2022[70] - Non-current liabilities surged to RMB 860,367 thousand in 2023, primarily due to new bank loans of RMB 836,366 thousand[70] - Non-current assets expanded significantly to RMB 1,730,107 thousand in 2023, compared to RMB 465,078 thousand in 2022[95] - Cash and cash equivalents increased to RMB 944,863 thousand in 2023, up 14.4% from RMB 825,594 thousand in 2022[95] - Total equity rose to RMB 2,738,573 thousand in 2023, a 45% increase from RMB 1,888,830 thousand in 2022[98] - The company's revenue for the past five fiscal years ranged from RMB 1.14 billion to RMB 2.26 billion, with gross profit ranging from RMB 260.76 million to RMB 434.70 million[195] - The company's total assets ranged from RMB 2.19 billion to RMB 4.25 billion over the past five fiscal years, with total liabilities ranging from RMB 510.74 million to RMB 1.51 billion[196] - The company's net profit attributable to equity shareholders ranged from RMB 60.43 million to RMB 113.47 million over the past five fiscal years[193] - The company's equity attributable to shareholders ranged from RMB 1.68 billion to RMB 1.93 billion over the past five fiscal years[196] Cash Flow and Investment Activities - Operating cash flow generated was RMB 334,402 thousand in 2023, a decrease from RMB 478,390 thousand in 2022[76] - Net cash generated from operating activities was RMB 321,138 thousand in 2023, down 30.4% from RMB 461,159 thousand in 2022[103] - The company's investment in debt and equity securities is detailed, with specific accounting policies for non-equity investments, including amortized cost and fair value through profit or loss[122] - The company holds derivative financial instruments to manage its foreign exchange risk exposure, with embedded derivatives separated from the host contract under certain conditions[124] - The company's investment activities in 2023 included payments for property, plant, and equipment (RMB 23.78 million), intangible assets (RMB 28.16 million), and financial assets at fair value (RMB 12 million)[192] - The company's net cash used in investing activities in 2023 was RMB 438.89 million, compared to RMB 38.06 million in 2022[192] - The company's net cash from financing activities in 2023 was RMB 236.31 million, compared to a net cash outflow of RMB 118.22 million in 2022[192] - The company's cash and cash equivalents increased by RMB 118.55 million in 2023, reaching RMB 944.86 million at the end of the year[192] Depreciation and Amortization - Depreciation of property, plant, and equipment amounted to RMB 54,566 thousand in 2023, up from RMB 21,514 thousand in 2022[76] - Amortization of intangible assets increased to RMB 32,091 thousand in 2023 from RMB 13,565 thousand in 2022[76] - The company's property, plant, and equipment are depreciated using the straight-line method over estimated useful lives ranging from 3 to 30 years, depending on the asset type[161] - The company's intangible assets (excluding goodwill) are amortized using the straight-line method over their estimated useful lives, with the amortization period and method reviewed annually[152] Business Segments and Acquisitions - The company's strategic regional sales system in China serves long-term stable high-quality customers, including major telecom operators such as China Unicom, China Mobile, and China Telecom, and major telecom equipment manufacturers[44] - The company has been a leader in the Chinese market for radio frequency coaxial cables used in mobile communications, based on sales volume[45] - The company's products are exported to Europe and Asia, with sales to local telecom operators in India starting in 2010 through its wholly-owned subsidiary[44] - The company's digital technology and security segment focuses on chip R&D, design, sales, and supply chain services, as well as semiconductor intellectual property licensing and digital security products and services[47] - The company completed the acquisition of Nanjing Zhangyu Information Technology Co., Ltd. and Shanghai Zhangyu Information Technology Co., Ltd., establishing a new Digital Technology and Digital Security business segment focused on chip R&D, design, sales, and supply chain services[158] - The company acquired Zhejiang Zhongguang New Energy Technology Co., Ltd., forming a new Energy and Services business segment, which operates two CSP tower molten salt energy storage power stations with capacities of 10 MW and 50 MW in Qinghai Province[158] - Jiangsu Hengxin Technology Co., Ltd., a wholly-owned subsidiary, has an annual production capacity of approximately 168,000 kilometers of mobile communication RF coaxial cables, 7,860,000 accessories, and 120,000 antennas[159] - The company is one of the leading manufacturers of integrated antenna and feeder products in China's mobile communication sector[160] - The company acquired a 51% stake in Zhejiang Zhongguang New Energy Technology Co., Ltd. for a total consideration of RMB 729 million, resulting in a goodwill of RMB 46 million[186] - The acquisition of Zhejiang Zhongguang included identifiable net assets with a fair value of RMB 188 million, primarily consisting of intangible assets[186] Goodwill and Intangible Assets - The company's goodwill generated from business acquisitions is measured at cost less accumulated impairment losses and is subject to annual impairment testing[120] - Goodwill and other intangible assets amounted to RMB 155 million and RMB 46 million, respectively, generated from business combinations with Nanjing Zhangyu Information Technology Co., Ltd. and Shanghai Zhangyu Information Technology Co., Ltd. in July 2022, and with Zhejiang Zhongguang in July 2023[166] - No goodwill impairment loss was recognized for the year ended December 31, 2023[166] - The company's intangible assets, including patents and intellectual property resources, are measured at cost less accumulated amortization and any accumulated impairment losses, with specific useful lives ranging from 1.5 to 25.4 years[127][128] Trade Receivables and Credit Losses - The company's trade receivables from customers outside provincial grid companies amounted to RMB 554 million as of December 31, 2023, with a provision for expected credit losses of RMB 40 million[56] - The company's management uses significant judgment to estimate expected credit loss rates for trade receivables, considering factors such as aging and customer repayment history[56] - The company's audit procedures for assessing expected credit loss provisions include evaluating management's internal controls, testing historical credit loss data, and recalculating expected credit loss provisions[56] Investments and Financial Instruments - The company's investments in subsidiaries are accounted for at cost less impairment losses, unless classified as held for sale[138] - The company's investments in associates are accounted for using the equity method, with losses recognized up to the extent of the company's investment[140] - The company's financial instruments, including derivatives, are initially measured at fair value, with subsequent changes in fair value recognized in profit or loss[146] - The company's consolidated financial statements include the interests of the group and its associates, with specific accounting policies for subsidiaries and non-controlling interests[110][116] - The company's transactions with equity-accounted investees result in unrealized gains and losses being offset against the investment, limited to the company's interest in the investee[118] Management and Accounting Policies - The company's management reviews estimates and assumptions regularly, with revisions affecting the current and future periods recognized accordingly[112] - The company's functional and presentation currency policies are consistently applied across all periods presented in the financial statements, except for changes in accounting policies[113] - The company's property, plant, and equipment are subject to depreciation, with useful lives and residual values reviewed and adjusted at each reporting date[126] Share Transactions and Equity-Linked Agreements - The company did not purchase, sell, or redeem any of its shares during the fiscal year ended December 31, 2023[183] - The company did not enter into any equity-linked agreements during the fiscal year 2023[182] Non-Controlling Interests and Subsidiaries - The company acquired a subsidiary, resulting in an increase of RMB 657,370 thousand in non-controlling interests[74]

Financial Performance - For the year ended December 31, 2023, the company reported a net profit of RMB 104,175,000, compared to RMB 68,082,000 in the previous year, representing a year-over-year increase of approximately 53.2%[3][4][7] - Earnings per share (EPS) for the year was RMB 0.180, up from RMB 0.164 in the previous year, indicating a growth of about 9.8%[7] - Total revenue for the year reached RMB 2,255,903,000, an increase from RMB 2,039,583,000 in the prior year, reflecting a growth of approximately 10.6%[8] - Total comprehensive income for the year was RMB 103,068,000, compared to RMB 68,172,000 in the previous year, marking an increase of approximately 51.2%[5][9] - Profit attributable to equity shareholders increased by approximately 9.6% to about RMB 69,700,000[27] - The company's profit before tax increased to RMB 125,532 thousand in 2023, up from RMB 76,953 thousand in 2022, representing a growth of 63.3%[32] - The pre-tax profit for the reportable segments totaled RMB 137,201,000 for 2023, compared to RMB 86,858,000 in 2022, indicating a significant increase of approximately 58.2%[70] Revenue Segments - The revenue from the digital technology and digital security segment was RMB 202,671,000 in 2023, up from RMB 94,218,000 in 2022, marking a growth of approximately 115.5%[72] - The revenue from the wireless communication segment reached RMB 1,976,168,000 in 2023, compared to RMB 1,945,365,000 in 2022, showing a slight increase of about 1.6%[72] - The revenue for the fiscal year 2023 increased compared to fiscal year 2022, partly due to the acquisition of Nanjing Zhangyu Information Technology Co., Ltd. and Shanghai Zhangyu Information Technology Co., Ltd., contributing approximately RMB 202.7 million, an increase of about RMB 108.5 million or 115.1% year-on-year[148] Cost and Expenses - The gross profit margin improved to 19.3%, compared to 18.4% in the previous year, driven by better cost management and operational efficiency[8] - The cost of inventory recognized as expenses for the year ended December 31, 2023, was RMB 1,821,205, an increase of 9.5% from RMB 1,664,058 in 2022[75] - Sales and distribution expenses decreased by approximately RMB 10.6 million or 9.0% to RMB 107.8 million in fiscal year 2023, attributed to reduced salary expenses and transportation costs[129] - Other operating expenses decreased by approximately RMB 30.2 million or 19.4% to RMB 125.5 million in fiscal year 2023[131] - Administrative expenses rose from approximately RMB 60.6 million in fiscal year 2022 to approximately RMB 72.5 million in fiscal year 2023, an increase of about RMB 11.9 million or 19.6%[157] Assets and Liabilities - The company's cash and cash equivalents increased to RMB 944,863,000 from RMB 825,594,000, representing a growth of about 14.4%[10] - Non-current assets, including property, plant, and equipment, rose to RMB 1,154,766,000, up from RMB 212,359,000 in the previous year, indicating significant investment in long-term assets[11] - Current assets as of December 31, 2023, were RMB 2,517,664,000, compared to RMB 2,077,261,000 in 2022[30] - The company's total liabilities increased to RMB 453,042 thousand in 2023 from RMB 387,960 thousand in 2022, indicating a rise in financial obligations[92] - As of December 31, 2023, the company had total bank loans of RMB 1,012,909 thousand, a significant increase from RMB 228,634 thousand in 2022[93] Investments and Acquisitions - The company plans to expand its market presence and invest in new technologies to drive future growth, although specific figures were not disclosed during the call[3] - The group completed the acquisition of Zhejiang Zhongguang New Energy Technology Co., Ltd. during the year, enhancing its operations in the renewable energy sector[66] - The company invested RMB 90,000 thousand in non-controlling interests of a subsidiary in 2023, indicating strategic expansion efforts[34] Research and Development - Research and development expenses for the year amounted to RMB 114,650, slightly up from RMB 114,592 in the previous year[75] - The company plans to enhance R&D innovation and promote new products, focusing on 5G antennas and satellite communication technology for future market expansion[193] - The company is developing customized software for industrial IoT and cloud computing, aiming to provide comprehensive cloud computing services to pilot customers[195] Taxation - The estimated taxable profit for the group in Hong Kong was calculated at a tax rate of 16.5% for the year ended December 31, 2023, consistent with the previous year[58] - The income tax expense increased from approximately RMB 8.9 million in fiscal year 2022 to approximately RMB 21.4 million in fiscal year 2023, an increase of about RMB 12.5 million or 140.4%[161] Shareholder Information - Mr. Cui Wei holds 108,868,662 shares, representing 28.06% of the company's issued share capital[199] - Ms. Zhang Zhong holds 15,894,525 shares, representing 4.10% of the company's issued share capital[199] - Mr. Du Xiping is the beneficial owner of 11,468,000 shares, representing 2.96% of the company's issued share capital[199]

Revenue and Profitability - Revenue for the six months ended June 30, 2023, increased by approximately RMB 51.1 million or 5.0% to approximately RMB 1,068.6 million[1] - Gross profit rose by approximately RMB 37.4 million or 21.9% to approximately RMB 207.8 million[1] - Profit attributable to equity shareholders increased by approximately RMB 19.9 million or 65.9% to approximately RMB 50.1 million[1] - Basic earnings per share were approximately RMB 0.129, an increase of about RMB 0.051 or 65.4%[1] - Net profit for the period was RMB 40.7 million, up from RMB 23.8 million year-on-year[3] - Total comprehensive income for the period was RMB 41.6 million, compared to RMB 24.4 million in the previous year[9] - The total comprehensive income for the period was RMB 51,025,000, compared to RMB 30,832,000 for the same period in 2022, reflecting an increase of approximately 65%[25] - The company reported a net profit before tax of RMB 49,775 thousand for the six months ended June 30, 2023, compared to RMB 29,250 thousand in the same period last year, showing an increase of approximately 70.5%[55] - Profit before tax increased by approximately RMB 20.5 million or about 70.0% to approximately RMB 49.8 million in the first half of 2023[175] Revenue Segmentation - Revenue from RF coaxial cables reached RMB 593,441,000, up from RMB 484,119,000 in the previous year, indicating a growth of about 23%[25] - The segment of digital technology and digital security generated revenue of RMB 75,765,000, which was not present in the previous year's results[25] - Revenue from external customers in China was RMB 1,010,263 thousand, up from RMB 931,948 thousand in the previous year, reflecting an increase of approximately 8.4%[57] - Revenue from feeder cable sales increased by approximately RMB 93.1 million or about 21.7% to 521.3 million in the first half of 2023[93] - Revenue from the telecommunications business segment decreased by approximately RMB 24.7 million or about 2.4% to approximately RMB 992.8 million in the first half of 2023, compared to approximately RMB 1,017.5 million in the same period of 2022[117] - The revenue from the RF coaxial cable segment, including leakage cables, increased by approximately RMB 16.2 million or 28.9% to approximately RMB 72.2 million in the first half of 2023, compared to approximately RMB 56.0 million in the same period of 2022[118] - The new digital technology and digital security segment, formed after the acquisition of Zhangyu Company, recorded revenue of approximately RMB 75.8 million in the first half of 2023[132] Assets and Liabilities - The company's total assets less current liabilities amounted to RMB 1,946.6 million as of June 30, 2023[5] - The company reported a total equity of RMB 1,930,447,000 as of June 30, 2023, compared to RMB 1,811,617,000 as of June 30, 2022, marking an increase of approximately 7%[20] - Total assets as of June 30, 2023, were approximately RMB 2,745.34 million, an increase from RMB 2,542.34 million as of December 31, 2022[183] - Total liabilities increased to approximately RMB 814.90 million as of June 30, 2023, from RMB 653.51 million as of December 31, 2022[183] - Trade receivables and other receivables net amount increased to RMB 744,226,000 as of June 30, 2023, compared to RMB 666,067,000 at the end of 2022, showing growth in receivables[68] - Other receivables increased by approximately RMB 89.3 million or about 115.1% to approximately RMB 166.9 million as of June 30, 2023, mainly due to increased prepayments for raw material procurement[137] Expenses and Costs - Total employee costs increased to RMB 88,110,000 in 2023 from RMB 77,655,000 in 2022, reflecting a rise of approximately 13.5%[60] - Research and development expenses amounted to RMB 54,455,000, slightly up from RMB 53,665,000 in the previous year, indicating a focus on innovation[60] - The company’s depreciation and amortization expenses for the six months ended June 30, 2023, were RMB 12,593 thousand, compared to RMB 10,144 thousand in the same period of 2022, indicating an increase of about 24.2%[56] - Other operating expenses rose by approximately RMB 31.0 million or about 49.4% to approximately RMB 93.7 million in the first half of 2023, with significant contributions from trade receivables impairment losses[173] - Income tax expenses rose by approximately RMB 3.6 million or about 66.7% to approximately RMB 9.0 million in H1 2023, attributed to increased operating profit[193] Strategic Initiatives and Future Outlook - The company is focused on expanding its operations in China, particularly in the fields of communication technology and digital security products[22] - The group has initiated research and development efforts in new chip technologies and digital security services to enhance its product offerings[22] - The company aims to operationalize its photovoltaic power station before summer 2023 to mitigate production risks and reduce costs[80] - The company plans to enhance product profitability through increased investment in new product development and technology applications[188] - The company anticipates challenges in the second half of 2023 due to complex global policies and geopolitical tensions, which may affect market demand and transaction delays[144] Dividends and Shareholder Returns - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2023[1] - The company has no interim dividend proposed or declared for the six months ended June 30, 2023, consistent with the previous year[65] Partnerships and Agreements - Jiangsu Hengxin entered into a partnership agreement to establish a limited partnership, with Jiangsu Hengxin holding 20% and Jiangsu Hengtong holding 80%[86] - The company signed a loan agreement to provide RMB 210 million to Nanjing Zhangyu for a potential acquisition, with an interest rate of 4.9%[82] - The company provided a loan agreement amounting to RMB 40 million to Nanjing Zhangyu with an annual interest rate of 4.9%[107] - The company signed an EPC agreement with Jiangsu Hengtong Energy Technology Co., Ltd. and a service agreement with Hengtong Intelligent Technology, with a total contract amount not exceeding RMB 7.5 million[104] - The company has entered into a server lease agreement with Shanghai Zhangyu for 90 high-performance servers, with a monthly rent of HKD 700,000[100] Market Conditions - In the first half of 2023, China's GDP growth rate was 5.5%, with Q1 growth at 4.5% and Q2 growth at 6.3%[185] - The semiconductor industry showed signs of recovery, with a 21.1% year-on-year decline in revenue but a 1.7% quarter-on-quarter increase reported in May 2023[145]

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佈的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就本公佈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。 HENGXIN TECHNOLOGY LTD. * 亨 鑫 科 技 有 限 公 司 （以HX Singapore Ltd.名稱在香港經營業務） （於新加坡共和國註冊成立的有限公司） （股份代號：1085） 截至二零二三年六月三十日止六個月中期業績公佈 財務摘要 1. 截至二零二三年六月三十日止六個月的收入增加約人民幣51.1百萬元或5.0%至約 人民幣1,068.6百萬元 2. 毛利額增加約人民幣37.4百萬元或21.9%至約人民幣207.8百萬元 3. 本公司權益股東應佔純利增加約人民幣19.9百萬元或65.9%至約人民幣50.1百萬元 4. 每股基本盈利約人民幣0.129元，相當於增加約人民幣0.051元或65.4% 5. 不建議派付截至二零二三年六月三十日止六個月的中期股息 ...

Revenue Growth - The company's revenue for the fiscal year 2022 increased by approximately RMB 413.8 million or 25.5% to RMB 2,039.6 million compared to the fiscal year 2021[2]. - Revenue from the RF coaxial cable segment rose by approximately RMB 174 million or 21.5% to RMB 984.8 million in fiscal year 2022[2]. - The digital technology and digital security segment, formed after the acquisition of Zhangyu Company, contributed approximately RMB 94.2 million in revenue during the second half of fiscal year 2022[2]. - Revenue from the telecommunications business segment decreased by approximately RMB 7,900,000 or about 8.8% to approximately RMB 81,600,000 in the fiscal year 2022[5]. - The company achieved a significant increase in revenue from digital services, which grew by 32.4% year-on-year[25]. - The company reported a significant increase in antenna revenue, which rose to RMB 450,982 thousand from RMB 337,910 thousand, reflecting a growth of 33.3%[151]. - Revenue from new product sales reached approximately RMB 472 million, with 13 PCT patents obtained[49]. - Customer contract revenue from Customer A increased to RMB 682,116 thousand in 2022, up 102% from RMB 337,753 thousand in 2021[176]. - Customer contract revenue from Customer B rose to RMB 300,943 thousand in 2022, representing a 51.7% increase from RMB 198,372 thousand in 2021[176]. Profitability and Margins - The overall gross margin for the group in the fiscal year 2022 was approximately 18.4%, an increase of about 0.2 percentage points compared to the fiscal year 2021[5]. - The gross profit margin for the fiscal year 2022 was reported at 23.8%, showing a slight increase from 22.9% in the previous year[21]. - The gross margin for antennas increased from approximately 15.4% in the fiscal year 2021 to about 16.9% in the fiscal year 2022, reflecting an increase of about 1.5 percentage points[5]. - The digital technology and digital security business segment achieved a gross margin of approximately 45.7% in the second half of the fiscal year 2022[5]. - The company’s net profit attributable to shareholders was RMB 140.6 million for the fiscal year 2022, compared to RMB 130.0 million in 2021, reflecting a year-on-year increase of approximately 12.3%[34]. Expenses and Financial Performance - Research and development expenses rose by approximately RMB 24.7 million, contributing to an overall increase in gross profit margin[1]. - Administrative expenses increased by approximately RMB 13.8 million or 29.4% to RMB 60.6 million in fiscal year 2022[1]. - Interest expenses increased by approximately RMB 4.8 million or 67.6% to RMB 11.9 million in fiscal year 2022[1]. - The company recorded a net loss of approximately RMB 32.4 million from financial assets measured at fair value through profit or loss in fiscal year 2022[1]. - The income tax expense decreased by RMB 1,800,000 or 17.3% to approximately RMB 8,900,000 in the fiscal year 2022, primarily due to increased operating profit and the formation of a new profit center[70]. Strategic Initiatives and Future Plans - The company plans to enhance market expansion efforts and implement more competitive pricing strategies to drive future growth[2]. - The group aims to enhance product profitability through increased R&D and application of new technologies[5]. - The company plans to start offering cloud computing and cloud storage services from January 1, 2023, supported by the purchase of high-performance servers[71]. - The company plans to strengthen its position in the industry by focusing on 5G applications and expanding its market presence both domestically and internationally[78]. - The company is committed to independent R&D and continuous investment in IoT to maintain its leading position in the market[100]. Financial Position and Assets - The total assets of the company as of the end of the fiscal year 2022 were RMB 2,542.3 million, up from RMB 2,477.5 million in 2021[36]. - The company maintained a debt-to-asset ratio of 26% in 2022, consistent with the previous year, indicating stable financial leverage[43]. - The company’s inventory turnover days improved to 44 days in 2022, down from 50 days in 2021, indicating better inventory management[43]. - Cash and cash equivalents increased by approximately RMB 128.6 million or 12.2% from about RMB 1,052.9 million as of December 31, 2021, to about RMB 1,181.6 million as of December 31, 2022[76]. - The company’s interest coverage ratio was 7.5 times in 2022, showing a strong ability to meet interest obligations[43]. Risks and Challenges - The company has identified major risks in the fiscal year 2022, including technology risks in 5G development and credit risks associated with customer defaults[98]. - To mitigate technology risks, the company is enhancing R&D efforts and maintaining close communication with telecom operators and equipment manufacturers[100]. - The expected credit loss for trade receivables is assessed based on historical credit loss experience and adjusted for specific debtor factors[102]. - The company maintains a strict credit approval process and has established a customer collection management system to minimize bad debt risks[100]. Acquisitions and Business Development - The company successfully completed acquisitions of 51% stakes in Nanjing Zhangyu and Shanghai Zhangyu, marking the largest acquisition in its history[25]. - The company has expanded its business to include chip research, design, sales, and supply chain services following the acquisition of Nanjing Zhangyu Information Technology Co., Ltd. and Shanghai Zhangyu Information Technology Co., Ltd.[197]. - The company has established a unique business model of "computing power services + hardware certification" through its cloud computing center[49]. - The company is actively developing new products such as 5G micro base stations and continues to promote 4G smart antennas in overseas markets[100].

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佈的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示概不就本公佈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。 HENGXIN TECHNOLOGY LTD. * 亨 鑫 科 技 有 限 公 司 （以HX Singapore Ltd.名稱在香港經營業務） （於新加坡共和國註冊成立的有限公司） （股份代號：1085） 截至二零二二年十二月三十一日止年度終期業績公佈 財務摘要 1. 收入增加約25.5%至約人民幣2,039,600,000元 2. 毛利增加約26.6%至約人民幣375,500,000元 3. 毛利率降低約0.2個百分點至約18.2% 4. 本公司權益股東應佔純利減少約10.8%至約人民幣63,600,000元 5. 每股基本盈利人民幣0.164元 6. 本公司不建議就截至二零二二年十二月三十一日止財政年度派付末期股息 ...

HENGXIN TECHNOLOGY LTD. 亨 鑫 科 技 有 限 公 司 * （以HX Singapore Ltd.名稱在香港經營業務） （於新加坡共和國註冊成立的有限公司） （股份代號：1085） 截至二零二二年六月三十日止六個月中期報告 | --- | --- | |-------|----------------------------------------------------------------------------------------------------| | | | | | 財務摘要 | | 1. | 截至二零二二年六月三十日止六個月的收入增加約人民幣 506.1 百萬元或 99.0% 至 約人民幣 1,017.5 百萬元 | | 2. | 毛利額增加約人民幣 63.3 百萬元或 59.1% 至約人民幣 170.4 百萬元 | | 3. | 本公司權益股東應佔純利增加約人民幣 14.4 百萬元或 91.1% 至約人民幣 30.2 百萬元 | | 4. | 每股基本盈利約人民幣 0.078 元，相當於增加約人民幣 0.037 元或 90.2% | | 5. | 不建議派付截 ...

Financial Performance - Total revenue for 2021 was RMB 1,625.775 million, a 42.7% increase from RMB 1,139.341 million in 2020[16] - Gross profit for 2021 was RMB 296.558 million, representing a gross margin of 18.2%[16] - Net profit attributable to equity shareholders for 2021 was RMB 71.303 million, up from RMB 61.299 million in 2020, reflecting a growth of 16.4%[16] - Operating expenses for 2021 were RMB 103.736 million for sales and distribution, and RMB 46.829 million for administrative expenses[16] - The company reported a decrease in interest expenses to RMB 7.142 million in 2021 from RMB 12.964 million in 2020[16] - The company's earnings per share for 2021 was RMB 0.184, compared to RMB 0.158 in 2020[22] - The total equity return rate for 2021 was 3.5%, consistent with the previous year[22] - The pre-tax profit for the fiscal year 2021 was approximately RMB 73,700,000, an increase of about RMB 1,100,000 or approximately 1.5% from the previous year[55] Revenue Segmentation - Revenue from regions outside of China was RMB 194,082 thousand, accounting for 11.9% of total revenue in 2021[22] - In 2021, the revenue from the RF coaxial cable segment, including leakage cables, was approximately RMB 199.6 million, an increase of about RMB 39.7 million or 24.8% compared to RMB 159.9 million in 2020[46] - Revenue from the telecommunications equipment and accessories segment increased by approximately RMB 486.5 million or about 42.7% to RMB 1,625.8 million in the fiscal year 2021[48] - Revenue from the RF coaxial cable segment increased by approximately RMB 188.3 million or about 30.2% to RMB 810.8 million in the fiscal year 2021[48] - Revenue from the antenna segment was approximately RMB 337.9 million, an increase of about RMB 130.8 million or approximately 63.2% compared to the fiscal year 2020[48] Production and Capacity - The production capacity for RF coaxial cables reached approximately 168,000 kilometers, with 7,860,000 accessories and 120,000 antennas[7] - The production of RF coaxial cables increased by 28.5% in 2021 compared to 2020, while telecom equipment and accessories saw a 40.0% increase in production during the same period[31] Market Strategy and Expansion - The company plans to expand its market presence in Europe and Asia, leveraging its wholly-owned subsidiary in India established in 2010[7] - The company plans to focus on three markets: rail transit, telecom operators, and overseas markets, aiming to become a leader in these segments[36] - The company is actively participating in the regular testing and centralized procurement organized by telecom operators to expand its small base station business[39] - The company is focusing on expanding its overseas market presence and enhancing brand recognition to mitigate business and industry risks[80] - Market expansion plans include entering three new international markets by the end of the next fiscal year[113] Research and Development - The company’s R&D investment for the year reached approximately RMB 899 million, emphasizing the importance of R&D in maintaining competitive advantage[31] - The company achieved a total of 11 invention patents in 2021, representing an 83% increase year-over-year, and developed 36 new products, generating sales of approximately RMB 318.68 million[31] - The company is investing heavily in R&D, with a budget allocation of 150 million for new technology development[113] - The company plans to increase R&D efforts for high-margin products such as 5G antennas and related accessories to address intensified competition in the telecommunications industry[80] Cost Management and Efficiency - The company implemented 40 lean projects, concluding 38, resulting in a cumulative reduction in manufacturing costs of approximately RMB 11,305,000[28] - A total of 6,481 micro-innovation projects were completed, generating tangible benefits of approximately RMB 8,351,300[28] - The company completed 37 cost improvement projects, yielding a total benefit of approximately RMB 14,710,000[28] - The company plans to continue monitoring production efficiency and optimizing resource utilization to mitigate cost pressures from raw materials and labor[51] Financial Position and Liabilities - Total assets increased to RMB 2,477.454 million in 2021, compared to RMB 2,227.781 million in 2020, marking a growth of 11.2%[16] - The debt-to-asset ratio increased to 28% in 2021, compared to 22% in 2020[22] - As of December 31, 2021, total liabilities amounted to RMB 690,283,000, an increase from RMB 495,367,000 in 2020, resulting in a debt-to-asset ratio of 28% compared to 22% in the previous year[67] - Cash and cash equivalents decreased by approximately RMB 304,200,000 or about 22.4% to RMB 1,052,900,000 due to increased inventory and trade receivables[60] Corporate Governance - The board has approved a new corporate governance framework to enhance shareholder value and protect interests[119] - The company has established a robust internal control system to ensure compliance and risk management[121] - Continuous professional development programs for directors have been implemented to strengthen governance practices[127] - The board composition is reviewed annually to ensure it has the appropriate size and diversity of expertise, knowledge, and experience[134] Risk Management - The board is responsible for risk assessment and management, establishing a risk management framework and internal control system to mitigate operational, financial, and compliance risks[172] - The audit committee assists the board in overseeing the risk management framework and internal control system, ensuring they are adequate and effective[179] - The company has established a fraud and whistleblowing policy to encourage reporting of potential financial reporting inaccuracies[188] Continuing Connected Transactions - The 2020 procurement agreement and sales agreement are classified as continuing connected transactions under the Hong Kong Listing Rules, requiring independent shareholder approval due to exceeding 5% of the applicable percentage ratios[98] - The independent non-executive directors confirmed that the continuing connected transactions were conducted in the ordinary course of business and on normal commercial terms[102]

Financial Performance - Revenue for the six months ended June 30, 2021, decreased by approximately RMB 54.3 million or 9.6% to approximately RMB 511.4 million[1] - Gross profit decreased by approximately RMB 22.6 million or 17.4% to approximately RMB 107.1 million[1] - Profit attributable to equity shareholders decreased by approximately RMB 9.6 million or 37.8% to approximately RMB 15.8 million[1] - Basic earnings per share were approximately RMB 0.041, a decrease of approximately RMB 0.025 or 37.9%[1] - The total comprehensive income for the six months ended June 30, 2021, was RMB 12.568 million, down from RMB 25.241 million in the same period of 2020[6] - The company's total comprehensive income for the first half of 2021 was RMB 15,597 thousand, compared to RMB 25,241 thousand in the first half of 2020[26] - The pre-tax profit decreased from approximately RMB 31.6 million in the first half of 2020 to about RMB 14.4 million in the first half of 2021, a decline of approximately RMB 17.2 million or 54.4%[90] - The net profit attributable to equity shareholders was approximately RMB 15.8 million in the first half of 2021, a decrease of about RMB 9.6 million or 37.8% compared to RMB 25.4 million in the first half of 2020[92] Dividends and Shareholder Returns - No interim dividend was recommended for the six months ended June 30, 2021[1] - The company did not declare any interim dividends for the six months ended June 30, 2021, and June 30, 2020[58] - The company paid dividends of RMB (6,130) thousand during the first half of 2021, down from RMB (11,329) thousand in the same period of 2020[24] Assets and Liabilities - Total assets as of June 30, 2021, were RMB 2,244.997 million, compared to RMB 2,227.781 million as of December 31, 2020[13] - Total liabilities as of June 30, 2021, were RMB 506.145 million, an increase from RMB 495.367 million as of December 31, 2020[20] - The asset-liability ratio increased to 23% as of June 30, 2021, from 22% as of December 31, 2020[106] - Short-term loans amounted to approximately RMB 292.06 million as of June 30, 2021, an increase from RMB 278.371 million as of December 31, 2020[104] Cash Flow and Investments - Cash and cash equivalents decreased to RMB 529.779 million from RMB 887.073 million as of December 31, 2020[11] - The company reported a net cash decrease of RMB (361,883) thousand in cash and cash equivalents for the first half of 2021, compared to a decrease of RMB (10,861) thousand in the same period of 2020[24] - Net cash used in investing activities for the first half of 2021 was RMB (232,811) thousand, compared to RMB (60,637) thousand in the first half of 2020, indicating a significant increase in investment outflows[24] Revenue Breakdown - Revenue from RF coaxial cables was RMB 98,426 thousand, down 65.6% from RMB 286,647 thousand in the previous year[34] - Revenue from telecommunications equipment and accessories was RMB 101,065 thousand, a decrease of 16.1% from RMB 120,520 thousand in the prior year[34] - Revenue from antennas was RMB 30,138 thousand, down 77.5% from RMB 134,181 thousand in the previous year[34] - Revenue from the Chinese market was RMB 449,952 thousand, accounting for approximately 87.9% of total revenue, while revenue from India was RMB 4,954 thousand, contributing about 1%[48] Operational Efficiency - The company plans to continue focusing on resource allocation and performance evaluation across its reportable segments to enhance operational efficiency[36] - The overall gross margin for the first half of 2021 was approximately 20.9%, a decrease of about 2.0 percentage points compared to 22.9% in the first half of 2020[80] - The gross margin for RF coaxial cables decreased from approximately 22.2% in the first half of 2020 to about 18.8% in the first half of 2021, resulting in a year-on-year decrease in gross profit contribution of approximately RMB 10.6 million or 16.6%[80] - The gross margin for telecommunications equipment and accessories fell from 29.5% in the first half of 2020 to approximately 23.9% in the first half of 2021, with a year-on-year decrease in gross profit contribution of approximately RMB 12.0 million or 33.8%[81] Employee and Management - The company employed 744 employees as of June 30, 2021, a decrease from 772 employees as of December 31, 2020[131] - Total remuneration for directors and key management personnel increased to RMB 3.669 million in the first half of 2021 from RMB 3.381 million in the first half of 2020[70] - The company has adopted an employee stock option incentive plan to motivate key employees for sustainable development[131] Market Outlook and Challenges - The group anticipates a gradual recovery in domestic investment in the telecommunications industry, with project construction beginning to pick up in the second quarter of 2021[110] - The group faces challenges in overseas markets due to the ongoing severity of the COVID-19 pandemic, impacting product shipments[110] - The company is facing challenges in exports due to ongoing COVID-19 impacts and rising costs from inflation and shipping fees[113] - The company aims to achieve better performance in the second half of 2021, leveraging opportunities from the expanding 5G network coverage[114] Research and Development - Research and development costs increased from approximately RMB 29.8 million in the first half of 2020 to about RMB 36.6 million in the first half of 2021, an increase of approximately RMB 6.8 million or 22.8%[86] Strategic Initiatives - The company is actively developing and selling new products while optimizing its sales structure to mitigate the impact of rising raw material costs[112] - The company is utilizing hedging strategies to counteract the effects of raw material price increases[112] - The company successfully won bids exceeding RMB 600 million in the 700 MHz tender for China Mobile and China Broadcasting, indicating a strong position in the 5G business development[112]