智通财经APP讯，亨鑫科技(01085)发布公告，李珺博士因希望投入更多时间于其他事务，而辞任公司独 立非执行董事、薪酬委员会之主席、审计委员会之成员及提名委员会之成员职务，自2025年7月31日起 生效。 陈汉聪先生已获委任为公司独立非执行董事、薪酬委员会之主席、审计委员会之成员及提名委员会之成 员，自2025年7月31日起生效。 ...

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。 HENGXIN TECHNOLOGY LTD. 亨 鑫 科 技 有 限 公 司 * （以 名稱在香港經營業務） HX Singapore Ltd. （於新加坡共和國註冊成立的有限公司） (香港股份代號：1085) 董事名單與其角色和職能 亨鑫科技有限公司董事會（「董事會」）成員載列如下。 執行董事 錢自嚴先生 林霆女士 陳漢聰先生 - 1 - 董事會設立3個委員會。下表提供各董事會成員在這些委員會中所擔任的職位，自二零二五年七月 三十一日起生效。 彭一楠先生 劉斐先生 非執行董事 崔巍先生 (主席) 陶舜曉先生 曾國偉先生 獨立非執行董事 | 委員會 | | | | | --- | --- | --- | --- | | | 審計委員會 | 薪酬委員會 | 提名委員會 | | 董事 | | | | | 彭一楠先生 | - | - | - | | 劉斐先生 | - | - | - | | 崔巍先生 | M | ...

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。 獨立非執行董事的辭任 亨鑫科技有限公司（「本公司」，連同其附屬公司統稱「本集團」）之董事（「董事」） 會（「董事會」）謹此宣布李珺博士（「李博士」）因希望投入更多時間於其他事務， 而辭任本公司獨立非執行董事、薪酬委員會之主席、審計委員會之成員及提名委員會之 成員職務，自二零二五年七月三十一日起生效。 李博士已向董事會確認，其與董事會並 無不同意見，亦無任何與其辭任有關的其他事項需要提請本公司股東注意。 董事會謹藉此機會對李博士在任職期間為本集團發展的寶貴貢獻表示衷心感謝。 獨立非執行董事的委任 H E N G X I N T E C H N O L O G Y L T D. 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） (香港股份代號：1085) 獨立非執行董事的變更及 審計委員會、 薪酬委員會及提名委員會的組成的變 ...

Financial Performance - For the fiscal year ending December 31, 2024, the company projects revenue of RMB 2,519,987,000, representing a 11.7% increase from RMB 2,255,903,000 in the previous year[10]. - The company reported a net profit of RMB 73,323,000 for the fiscal year 2023, a decrease of 29.8% compared to RMB 104,175,000 in 2022[10]. - In 2024, the company achieved revenue of approximately RMB 2,520.2 million, representing a year-on-year growth of about 11.7%[21]. - The company's attributable profit for the year was approximately RMB 42.2 million, a decrease of about 39.5% compared to the previous year[21]. - Profit before tax decreased by approximately RMB 36.8 million or 29.3% to approximately RMB 88.7 million in FY2024[70]. - Profit attributable to equity shareholders decreased by approximately RMB 27.5 million or 39.5% to approximately RMB 42.2 million in FY2024[73]. Revenue Segments - The wireless communication segment recorded revenue of approximately RMB 2,095.7 million for the fiscal year 2024, an increase of 6.0% from the previous year[55]. - The integrated circuit and digital technology segment recorded revenue of approximately RMB 238.3 million in FY2024, an increase of about RMB 35.6 million or 17.6% compared to FY2023[56]. - The new energy and services segment generated revenue of approximately RMB 144.2 million from solar sales in FY2024, with a 50MW power station generating 4,915 hours of electricity, a year-on-year decrease of about 5.7%[58]. - The revenue from Zhongguang New Energy Technology Co., Ltd. is expected to contribute approximately RMB 186 million, representing a year-on-year increase of 141.2%[54]. Assets and Liabilities - The total assets of the company increased to RMB 4,666,187,000 in 2024, up from RMB 4,247,771,000 in 2023, indicating a growth of approximately 9.9%[10]. - The company’s total liabilities increased significantly to RMB 2,319,095,000 in 2024, compared to RMB 1,509,198,000 in 2023, marking a rise of 53.7%[10]. - The debt-to-asset ratio increased to 36% in 2023, with a projected rise to 50% in 2024[16]. - Trade receivables increased by approximately RMB 465.5 million or 56.1% to approximately RMB 1,295.8 million as of December 31, 2024, primarily due to increased revenue in Q4 FY2024[77]. Investments and Acquisitions - The company completed the acquisition of Zhejiang Zhongguang New Energy Technology Co., Ltd., establishing a new business segment focused on renewable energy and services, including two concentrated solar power (CSP) plants with capacities of 10 MW and 50 MW[5]. - The company completed the acquisition of the remaining 49% equity in Nanjing Zhangyu Information Technology Co., Ltd. and Shanghai Zhangyu Information Technology Co., Ltd., enhancing operational control and efficiency[22]. - The acquisition of Nanjing Zhangyu was completed on July 17, 2024, granting the company indirect ownership of 100% of Nanjing Zhangyu[147]. - The acquisition of Shanghai Zhangyu was completed on July 17, 2024, resulting in the company indirectly owning 100% of Shanghai Zhangyu[188]. Research and Development - The company expects to increase R&D investment in integrated circuit design and advanced manufacturing processes, focusing on AI, IoT, and high-performance computing technologies[40]. - The company plans to enhance R&D in key technologies such as high-efficiency collectors and new molten salt formulations to address challenges in solar thermal power generation[43]. - The company aims to support Nanjing Zhangyu's operational funding and financial resources for its development in integrated circuits and digital products[199]. Operational Efficiency - The company achieved a cost reduction of over RMB 55.0 million in 2024 through enhanced technological innovation and digital capabilities[37]. - The company has established long-term partnerships with leading wafer foundries to ensure stable supply and production capacity across various process nodes[27]. - The company is focusing on product quality inspection to ensure defect-free shipments and maintain its reputation[174]. Market Outlook - The semiconductor industry is projected to reach global sales of USD 627.6 billion in 2024, with a year-on-year growth of 19.1%[23]. - The semiconductor market is projected to reach USD 697 billion by 2025, with a growth rate of 11.2%[40]. - The global photovoltaic installed capacity is expected to reach 531-583 GW by 2025, with China contributing 215-255 GW, reflecting strong domestic demand[93]. Corporate Governance and Compliance - The group has no involvement in any significant litigation or arbitration matters as of December 31, 2024[114]. - The company has noted a failure to comply with the relevant provisions of the Listing Rules regarding continuing connected transactions due to local financial personnel's oversight[148]. - The loan extension agreements were approved at the special general meeting held on April 26, 2024[199]. Employee and Shareholder Matters - The group had a total of 902 employees, down from 1,095 employees as of December 31, 2023[113]. - The company has adopted a share incentive plan, allowing for a maximum of 46,560,000 shares to be granted, which is 10% of the issued shares as of the adoption date[171]. - The share incentive plan is designed to attract suitable professionals and experienced talent for further development of the company[168].

Financial Performance - Revenue increased by approximately 11.7% to approximately RMB 2,520.0 million[2] - Gross profit increased by approximately 7.5% to approximately RMB 467.3 million[2] - Net profit attributable to equity shareholders decreased by approximately 39.5% to approximately RMB 42.2 million[2] - Basic earnings per share decreased to RMB 0.097 from RMB 0.180[3] - Operating profit decreased to RMB 140.2 million from RMB 156.5 million[3] - Total revenue for the year ended December 31, 2024, reached RMB 2,519,987 thousand, an increase of 11.7% from RMB 2,255,903 thousand in 2023[25] - The company reported a total of RMB 36,048 thousand in other operating income for 2024, up from RMB 31,607 thousand in 2023, indicating an increase of 14.5%[26] - Profit before tax decreased by approximately RMB 36.8 million or 29.3% to about RMB 88.7 million in FY2024[66] - Income tax expenses decreased by approximately RMB 6.0 million or 28.0% to about RMB 15.4 million in FY2024, attributed to the reduction in profit before tax[67] - Profit attributable to equity shareholders decreased by approximately RMB 27.5 million or 39.5% to about RMB 42.2 million in FY2024[68] Assets and Liabilities - Total assets decreased to RMB 3,436.5 million from RMB 3,598.9 million[6] - The total amount of specified non-current assets in China was RMB 1,473,739 thousand as of December 31, 2024, down from RMB 1,552,399 thousand in 2023[23] - The total liabilities increased to approximately RMB 2,319,095,000 in 2024 from RMB 1,509,198,000 in 2023, resulting in a debt-to-asset ratio of 50% compared to 36% in the previous year[83] - The company's bank loans totaled RMB 1,498.019 million as of December 31, 2024, compared to RMB 1,012.909 million in 2023, reflecting an increase of approximately 48.0%[47] Segment Performance - The group operates in three reportable segments: Integrated Circuits and Digital Technology, New Energy and Services, and Wireless Communication[19] - The Integrated Circuits and Digital Technology segment focuses on chip R&D, design, sales, and supply chain services, as well as semiconductor IP licensing[19] - The New Energy and Services segment emphasizes electricity supply, particularly solar energy production and sales, along with thermal power generation technology consulting[19] - The Wireless Communication segment provides signal transmission products and services to global mobile communication operators and equipment manufacturers[19] - The revenue from the wireless communication segment was RMB 2,095,671 thousand in 2024, up from RMB 1,976,168 thousand in 2023, representing a growth of 6.0%[25] - The Integrated Circuit and Digital Technology segment generated revenue of approximately RMB 238.3 million in FY2024, an increase of about RMB 35.6 million or 17.6% compared to FY2023[54] - The New Energy and Services segment recorded revenue of approximately RMB 144.2 million from solar sales, with a 50MW power station generating 4,915 hours of electricity, a year-on-year decrease of about 5.7%[55] - The Wireless Communication segment's revenue increased slightly by RMB 119.5 million or 6.0% due to enhanced market development efforts and competitive pricing strategies[56] Research and Development - Research and development expenses increased to RMB 148,317 thousand in 2024 from RMB 114,650 thousand in 2023, reflecting a growth of 29.3%[28] - The company plans to increase R&D investment in integrated circuit design and advanced manufacturing processes to enhance competitiveness and expand overseas markets[85] - The company aims to enhance gross margins through increased investment in new product development and technology applications, as well as improving operational efficiency[59] Dividends and Shareholder Information - The company does not recommend the payment of a final dividend for the fiscal year ending December 31, 2024[2] - The group has no proposed final dividend for the fiscal year ending December 31, 2024[34] - The company has not proposed any final dividends for the fiscal year 2024 or for the fiscal year 2023[159] - The company reported that major shareholders hold approximately 23.38% of the issued share capital, with significant stakes held by Jin Yong and Mr. Cui Wei[95] Acquisitions and Investments - The group completed the acquisition of Zhejiang Zhongguang New Energy Technology Co., Ltd. during the fiscal year ending December 31, 2023[17] - The acquisition of Nanjing Zhangyu Information Technology Co., Ltd. and Shanghai Zhangyu Information Technology Co., Ltd. contributed approximately RMB 238.3 million in revenue for the fiscal year 2024, representing a year-on-year increase of RMB 35.6 million or 17.6%[52] - The acquisition of Shanghai Zhangyu was completed on July 17, 2024, resulting in the company indirectly owning 100% of Shanghai Zhangyu[118] - The total consideration for the acquisition of the remaining 49% equity in Nanjing Zhangyu and Shanghai Zhangyu was RMB 522 million[132] Financial Management and Governance - The group has adopted several new International Financial Reporting Standards (IFRS) amendments, which did not have a significant impact on the financial statements for the current and prior years[11] - The group has not early adopted any new IFRS standards that have been issued but are not yet effective, anticipating no significant impact on the consolidated financial statements[12] - The company confirmed compliance with all corporate governance codes as of December 31, 2024[154] - The company appointed new auditors, with the term effective from November 25, 2024, to the conclusion of the next annual general meeting[151] Market Outlook and Strategy - The semiconductor market is projected to reach USD 697 billion in 2025, with a growth rate of 11.2%, driven by advancements in AI, 5G, and IoT technologies[85] - The global photovoltaic installed capacity is expected to reach 531-583 GW in 2025, with China contributing 215-255 GW, reflecting strong domestic market demand[86] - The company aims to deepen its focus on solar thermal power, enhancing key technologies and exploring integration with energy storage solutions[87] - The company aims to enhance its international operations and brand globalization, transitioning from an "export" model to a localized "going out" strategy[89] Employee and Management Information - As of December 31, 2024, the group had a total of 902 employees, a decrease from 1,095 employees as of December 31, 2023[103] - The total compensation for key management personnel increased to RMB 10.867 million in 2024 from RMB 9.105 million in 2023, representing an increase of approximately 19.3%[49] Risks and Compliance - The company faces various market risks, including global economic conditions and commodity price fluctuations[98][99] - The company has no significant contingent liabilities as of December 31, 2024[102] - The company has no significant litigation or arbitration matters as of December 31, 2024[104]

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 period was RMB 33.8 million, compared to 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, an increase from RMB 55.5 million in the same period of 2023[2]. - The total revenue for the group for the six months ended June 30, 2024, was RMB 1,115,320,000, compared to RMB 1,068,591,000 for the same period in 2023, marking an increase of about 4.4%[14]. - The total comprehensive profit before tax for the group was RMB 43,600 thousand for the six months ended June 30, 2024, down from RMB 49,775 thousand in 2023, a decrease of about 12.4%[20]. Segment Performance - Revenue from the Digital Technology and Digital Security segment for the six months ended June 30, 2024, was RMB 78,037,000, up from RMB 75,765,000 in 2023, indicating a growth of 3.4%[14]. - Revenue from the Wireless Communication segment decreased to RMB 969,251,000 for the six months ended June 30, 2024, down from RMB 992,826,000 in 2023, reflecting a decline of approximately 2.4%[14]. - The group’s revenue from the New Energy and Services segment was RMB 68,032,000 for the six months ended June 30, 2024, compared to no revenue reported in the previous year, indicating a new revenue stream[14]. - The segment profit before tax for the digital technology and security division was RMB 31,346 thousand, down from RMB 47,991 thousand in the previous year, indicating a decline of about 34.7%[20]. - The wireless communication segment's revenue slightly decreased by RMB 23.2 million or 2.3% due to intense market competition[57]. Assets and Liabilities - The company's total assets as of June 30, 2024, were RMB 3,686.6 million, an increase from 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, compared to RMB 2,738.6 million as of December 31, 2023[6]. - The total liabilities increased to approximately RMB 1,760,277,000 as of June 30, 2024, compared to RMB 1,509,198,000 on December 31, 2023, reflecting a rise of about 16.6%[76]. - The asset-liability ratio of the group increased to 38% as of June 30, 2024, compared to 36% at the end of 2023[76]. Cash Flow and Financing - The group's cash and cash equivalents, including time deposits, amounted to approximately RMB 1,419,165,000 as of June 30, 2024, compared to RMB 1,380,821,000 at the end of 2023[75]. - Current and non-current bank loans totaled approximately RMB 1,011.4 million as of June 30, 2024, with a portion used to finance the acquisition of Zhongguang New Energy[74]. - A loan agreement was established for a principal amount of RMB 40 million with Nanjing Zhangyu Information Technology Co., Ltd., at an interest rate of 4.9%[47]. - A second loan agreement was signed for a principal amount of RMB 210 million, also at an interest rate of 4.9%, intended for potential acquisition costs related to Zhejiang Zhongguang New Energy Technology Co., Ltd.[47]. Dividends and Share Capital - 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 2023[28]. - The company issued new shares during the period, increasing the share capital to RMB 362.8 million as of June 30, 2024, from RMB 295.0 million at the beginning of the year[7]. - As of June 30, 2024, the company's total equity increased to 465,600 thousand shares, up from 388,000 thousand shares as of December 31, 2023, representing a 20% increase[29]. Expenses and Investments - Research and development expenses amounted to RMB 72,184 thousand for the six months ended June 30, 2024, compared to RMB 54,455 thousand in 2023, representing an increase of about 32.5%[25]. - Selling and distribution expenses rose by approximately RMB 11.4 million or 20.7% to 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 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]. - Capital expenditures for the six months ended June 30, 2024, were approximately RMB 17.0 million, significantly higher than RMB 6.6 million for the same period in 2023, indicating a 157.6% increase[32]. Acquisitions and Strategic Developments - The group completed the acquisition of Zhejiang Zhongguang New Energy Technology Co., Ltd. in the fiscal year ending December 31, 2023, which is expected to enhance its market position in the renewable energy sector[16]. - The acquisition of Shanghai Zhangyu Information Technology Co., Ltd. was completed on July 17, 2024, resulting in full ownership[43]. - The company plans to complete the acquisition of remaining shares in Nanjing Zhangyu and Shanghai Zhangyu in the second half of 2024, which is expected to diversify its business model and create stable revenue sources[82]. Corporate Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code during the reporting period[90]. - The independent non-executive directors deemed the service contract terms fair and reasonable, aligning with the overall interests of the company and its shareholders[45]. - The loan agreements were approved at the company's special general meetings held on July 19, 2023, and April 26, 2024[47][48]. Market and Industry Insights - The semiconductor industry saw a global revenue increase of 19.3% year-on-year in May 2024, with China experiencing a growth of 24.2%[78]. - The total installed capacity of wind and solar power in China surpassed 1 billion kilowatts, accounting for about 36% of the total power generation capacity[79]. - The cumulative installed capacity of solar thermal power in China was only 588 MW by the end of 2022, highlighting the growth potential in the sector[80].

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]