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]

Financial Performance - The total revenue for the year 2020 was approximately 1,139.3 million, a decrease of 20.3% compared to 1,428.6 million in 2019[13] - Gross profit for 2020 was 260.8 million, representing a gross margin of 22.9%[13] - The net profit attributable to equity shareholders for 2020 was 61.3 million, down from 113.5 million in 2019, reflecting a decline of 46%[13] - Total revenue for 2020 was approximately RMB 1,139.3 million, a decrease of about 20.2% year-on-year[27] - Profit attributable to equity shareholders decreased by approximately RMB 61.3 million or 46.0% to about RMB 61.3 million in 2020[27] - Gross margin for 2020 was approximately 22.9%, a decrease of about 0.8 percentage points compared to the previous year[27] - The overall revenue for the company in the fiscal year 2020 was approximately RMB 1,139.3 million, a decrease of about RMB 289.3 million or 20.2% from the previous fiscal year[47] Assets and Liabilities - Total assets increased to 2,227.8 million in 2020, compared to 2,192.9 million in 2019[13] - The total liabilities decreased to 495.4 million in 2020 from 510.7 million in 2019[13] - The total assets attributable to equity shareholders increased from RMB 1,682.1 million in 2019 to RMB 1,730.3 million in 2020[27] - The total liabilities decreased to RMB 495,367,000 in 2020 from RMB 510,744,000 in 2019, resulting in a debt-to-asset ratio of 22%, down from 23%[74] Market Position and Strategy - The company maintained a strategic regional sales system, serving major telecom operators in China, including China Unicom, China Mobile, and China Telecom[6] - The company has been a market leader in the sales volume of RF coaxial cables in the mobile communication industry in China[7] - The company plans to expand its market presence in international markets, particularly in Asia, through its wholly-owned subsidiary in India[6] - The company aims to expand its market share in both domestic and international 5G markets while solidifying its leading position in the 4G product market[39] Product Development and Innovation - The company focused on innovation and transformation, developing new products and expanding into new markets and customers[30] - In 2020, the company developed 34 new products and filed 66 patent applications, including 29 invention patents and 2 international patents[31] - The company achieved sales of new products exceeding RMB 400 million, with new business in network engineering generating over RMB 33 million[30] - The company is focusing on the development of high-margin products like 5G antennas and cables, aiming to improve product quality and brand recognition[91] Operating Income and Expenses - The company reported an increase in other operating income to 58.2 million in 2020, up from 35.5 million in 2019[13] - Administrative expenses decreased by approximately RMB 6,200,000 or about 13.7% from RMB 45,400,000 in FY2019 to RMB 39,200,000 in FY2020[54] - Interest expenses decreased by approximately RMB 2,000,000 or about 13.3% from RMB 15,000,000 in FY2019 to RMB 13,000,000 in FY2020[54] - Other operating expenses increased by approximately RMB 32,800,000 or about 48.2% from RMB 68,000,000 in FY2019 to RMB 100,800,000 in FY2020[58] Risk Management - The company faced significant business and industry risks due to economic slowdown and reduced profits among telecom operators, impacting network construction and equipment procurement[88] - The company implemented measures such as expanding overseas markets and enhancing market visibility to mitigate risks[88] - Credit risk is managed by collaborating only with reputable counterparties and obtaining sufficient collateral, with regular assessments of credit limits based on financial information[94] - The company is exposed to foreign exchange risks due to fluctuations in the RMB exchange rate, and it aims to maximize RMB settlements while using forward foreign exchange contracts to mitigate risks[94] Corporate Governance - The company adopted the corporate governance code as per the Hong Kong Stock Exchange Listing Rules Appendix 14 for the fiscal year 2020[128] - The main responsibility of the board is to protect shareholder interests and enhance long-term shareholder value[129] - The board has established a set of approval procedures for matters requiring board approval and delegated authority to management[130] - The board meets quarterly and holds ad-hoc meetings as necessary to address significant issues, with agendas including management reports, financial reports, strategic matters, and compliance[131] Board Composition and Performance - The board of directors consists of two executive directors, two non-executive directors, and three independent non-executive directors as of December 31, 2020[129] - The board composition is reviewed annually to ensure it has the appropriate size and diversity of expertise, knowledge, and experience[145] - Independent non-executive directors provide the board with the ability to make independent judgments on various company matters[145] - The board's performance evaluation process includes assessing attendance rates and contributions made by directors during meetings[169] Audit and Internal Control - The audit committee held four meetings during the fiscal year 2020 to review various matters, including the external audit work conducted by KPMG and the effectiveness of the internal control system[196] - The audit committee is responsible for ensuring the management creates and maintains an effective control environment within the group[193] - The audit committee reviews the clarity and completeness of disclosures in financial statements and related reports[196] - The board is satisfied with the internal control system and risk management framework, having adopted suggestions from internal auditors for further improvements[191]

Financial Performance - Revenue for the six months ended June 30, 2020, decreased by approximately RMB 215.8 million or 27.6% to approximately RMB 565.7 million[1] - Gross profit decreased by approximately RMB 58.5 million or 31.1% to approximately RMB 129.7 million[1] - Net profit attributable to owners of the company decreased by approximately RMB 48.0 million or 65.4% to approximately RMB 25.4 million[1] - Basic earnings per share were approximately RMB 0.066, a decrease of approximately RMB 0.123 or 65.1%[1] - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2020[1] - Operating profit for the first half of 2020 was RMB 38.5 million, down from RMB 91.4 million in the same period of 2019[4] - The group reported a pre-tax profit of RMB 39,421 thousand for the six months ended June 30, 2020, compared to RMB 80,562 thousand for the same period in 2019, reflecting a decline of 51.0%[33] - The group's reported profit before tax for the six months ended June 30, 2020, was RMB 31,575 thousand, a decrease of 62.3% compared to RMB 83,927 thousand for the same period in 2019[38] - The company's net profit attributable to shareholders for the first half of 2020 was approximately RMB 25.4 million, a decrease of about RMB 48.0 million or approximately 65.4% compared to RMB 73.4 million in the first half of 2019[85] - Profit before tax decreased by approximately RMB 52.3 million or about 62.3% to approximately RMB 31.6 million in the first half of 2020 compared to approximately RMB 83.9 million in the same period of 2019[83] Cash Flow and Investments - The company reported a cash flow from operating activities of RMB 50.7 million for the first half of 2020, compared to a cash outflow of RMB 123.6 million in the same period of 2019[12] - For the six months ended June 30, 2020, the net cash used in investing activities was RMB (60,637) thousand, compared to RMB (4,844) thousand for the same period in 2019, indicating a significant increase in investment outflows[14] - The company reported a net cash decrease of RMB (10,861) thousand in cash and cash equivalents for the six months ended June 30, 2020, compared to a decrease of RMB (154,054) thousand in the same period of 2019, showing improved cash management[14] - The company made investments totaling RMB (10,659) thousand in property, plant, and equipment for the first half of 2020, slightly higher than RMB (10,486) thousand in the same period of 2019[14] Assets and Liabilities - Total assets as of June 30, 2020, were RMB 2,244.8 million, compared to RMB 2,192.9 million as of December 31, 2019[8] - Current assets increased to RMB 2,051.4 million from RMB 1,996.8 million as of December 31, 2019[8] - Cash and cash equivalents were RMB 591.5 million, down from RMB 616.6 million as of December 31, 2019[8] - Total liabilities increased to approximately RMB 548.8 million as of June 30, 2020, from RMB 510.7 million as of December 31, 2019[94] - The asset-liability ratio increased to 24% as of June 30, 2020, from 23% as of December 31, 2019[98] Revenue Breakdown - Revenue from RF coaxial cables was RMB 286,647 thousand, down 7.7% from RMB 310,619 thousand in the previous year[26] - Revenue from telecommunications equipment and accessories decreased by 32.9% to RMB 120,520 thousand from RMB 179,769 thousand[26] - Revenue from antennas dropped by 44.8% to RMB 134,181 thousand compared to RMB 241,915 thousand in the prior year[26] - Revenue from external customers in China for the six months ended June 30, 2020, was RMB 449,952 thousand, down 34.8% from RMB 689,949 thousand in 2019[43] - Revenue from feeders decreased by approximately RMB 8.2 million or 3.5% to about RMB 222.8 million in the first half of 2020 compared to approximately RMB 231.0 million in the same period of 2019[67] Expenses and Costs - The cost of goods sold for the six months ended June 30, 2020, was RMB 436,005 thousand, a decrease of 26.6% from RMB 593,352 thousand in 2019[46] - Research and development expenses for the six months ended June 30, 2020, were RMB 29,753 thousand, slightly down from RMB 30,476 thousand in 2019[46] - Selling and distribution expenses decreased by approximately RMB 7.3 million or about 13.4% to approximately RMB 47.1 million in the first half of 2020, primarily due to reduced transportation and marketing costs during the COVID-19 pandemic[77] Shareholder Information - Wellahead Holdings Limited owns approximately 7.24% of the company's total issued share capital[105] - Major shareholder Jin Yong holds 96,868,662 shares, representing 24.97% of the company's issued share capital[112] - The total number of ordinary shares as of June 30, 2020, was 388,000 thousand shares, with a capital of RMB 295,000 thousand[51] Corporate Governance - The audit committee has reviewed the interim results for the six months ending June 30, 2020[117] - The company has complied with all corporate governance code provisions as of June 30, 2020[118] - There are no arrangements in place for directors to benefit from purchasing the company's shares or bonds[116] Future Outlook - The company plans to accelerate the deployment of 5G base stations at a rate of 10,000 stations per week in the second half of 2020[102] - The company aims to leverage the development of 5G network radio frequency products and various intelligent terminal communication modules as key growth drivers[102] - The company's management expressed optimism about market demand remaining strong in the second half of 2020, provided no extreme situations arise[102]

Financial Performance - Total revenue for 2019 was RMB 1,428.6 million, a decrease of 9.9% compared to RMB 1,586.9 million in 2018[11] - Gross profit for 2019 was RMB 338.4 million, resulting in a gross margin of 23.7%, down from 23.8% in 2018[11] - Net profit for 2019 was RMB 113.5 million, a slight decrease from RMB 118.3 million in 2018[11] - Other operating income increased to RMB 35.5 million in 2019, compared to RMB 30.0 million in 2018[11] - The revenue from regions outside China accounted for 14.0% of total revenue in 2019, down from 20.5% in 2018[19] - The company achieved a total sales revenue of RMB 1,428,600,000, a decrease of approximately 10.0% compared to the previous year[23] - Net profit for the year was RMB 113,500,000, representing a decline of about 4.1% year-on-year[23] - The overall gross margin of the company remained stable at 23.7%, with higher-margin products such as leakage cables, antennae, and telecom equipment accounting for 11.8%, 27.8%, and 23.9% respectively[26] - The revenue from feeder sales decreased by approximately RMB 188.4 million or 30.0%, from RMB 627.5 million in 2018 to RMB 439.1 million in 2019[42] - The revenue from the radio frequency coaxial cable segment was approximately RMB 608,100,000, a decrease of about RMB 119,100,000 or 16.4% compared to RMB 727,200,000 in the fiscal year 2018[43] - The antenna revenue in the fiscal year 2019 was approximately RMB 396,700,000, a decrease of about RMB 36,400,000 or 8.4% compared to RMB 433,100,000 in the fiscal year 2018[43] - The revenue from the leakage cable segment was approximately RMB 169,000,000, an increase of about RMB 99,800,000 or 69.3% compared to the previous fiscal year[43] Assets and Liabilities - The total assets as of December 31, 2019, were RMB 2,192.9 million, an increase from RMB 2,136.1 million in 2018[11] - Trade receivables and other receivables as of December 31, 2019, amounted to RMB 820,300,000, an increase of approximately RMB 82,600,000 or about 11.2% from RMB 737,700,000 on December 31, 2018[51] - The company's total liabilities were approximately RMB 510,744,000 as of December 31, 2019, down from RMB 548,572,000 in 2018[53] - The company's cash and cash equivalents, along with time deposits, reached RMB 1,016,600,000 as of December 31, 2019, compared to RMB 978,600,000 at the end of 2018[58] - The debt-to-asset ratio was reported at 23%, indicating a moderate level of leverage[20] - The company's total liabilities at the end of the reporting period were RMB 510,744 million, down from RMB 548,572 million in the previous year, resulting in a debt-to-asset ratio of 23%, compared to 26% in the prior year[63] Market Strategy and Development - The company maintained a strategic regional sales system, serving major telecom operators in China, including China Unicom, China Mobile, and China Telecom[5] - The company exported products to international markets primarily located in Asia, with a focus on sales to local telecom operators in India since 2010[5] - The company plans to continue expanding its product offerings and market presence in the telecommunications sector[5] - The company is actively pursuing business transformation and product structure adjustments to enhance market competitiveness amid a challenging telecommunications market[24] - The company plans to focus on 5G antenna, filter, and high-frequency cable development in 2020, aiming to integrate R&D, production, and sales efforts[37] - The company aims to transform from a pure manufacturer to a system solution provider and engineering contractor[37] - The company has identified 5G technology commercialization as a significant growth opportunity despite challenges from the COVID-19 pandemic[37] - The company is actively seeking new products, new markets, and new business opportunities to drive growth[37] Research and Development - The company applied for a total of 51 patents in 2019, including 20 invention patents and 7 PCT patents[32] - The company completed 18 national and industry standards in 2019, with 6 industry standards and 3 new IEC standards added[32] - The company initiated 32 projects for 5G antenna development in 2019, with 21 projects completed and 13 new 5G antenna products developed[34] - The company is focusing on R&D for 5G technology and maintaining close interactions with telecom operators to understand evolving trends[73] Risk Management - The company is facing business and industry risks due to economic slowdown and reduced procurement by telecom operators, with measures including expanding overseas markets and improving production efficiency[70] - The company has implemented measures to mitigate technical risks associated with the uncertainty in 5G applications and product forms[73] - The company has established a risk management framework to evaluate overall risk tolerance and strategies, as well as to review potential new business ventures[164] - The audit committee is responsible for overseeing the implementation and review of the risk management framework and internal control systems[173] Corporate Governance - The board of directors has established a new governance framework to protect shareholder interests and enhance long-term value[110] - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange regulations, ensuring compliance and transparency[109] - The board composition includes independent non-executive directors who provide independent judgment and insights on company matters[123] - The company emphasizes diversity in its board composition, considering factors such as gender, age, and professional experience[121] - The board's effectiveness is reviewed annually to ensure it operates in the most efficient manner[112] Employee and Community Engagement - The company has implemented an employee equity incentive plan to enhance the motivation of key employees and ensure sustainable development[159] - The company has committed to annual donations of RMB 500,000 to a charitable organization starting from 2007[58]

Financial Performance - Revenue for the six months ended June 30, 2019, decreased by approximately RMB 32.5 million or 4.0% to approximately RMB 781.5 million[1] - Gross profit increased by approximately RMB 0.6 million or 0.3% to approximately RMB 188.1 million[1] - Profit attributable to owners of the company increased by approximately RMB 2.3 million or 3.2% to approximately RMB 73.4 million[1] - Basic earnings per share were approximately RMB 0.189, representing an increase of approximately RMB 0.006 or 3.3%[1] - The company reported a pre-tax profit of RMB 83.9 million for the six months ended June 30, 2019, compared to RMB 82.5 million for the same period in 2018[21] - The company reported a total comprehensive income of RMB 73,430 thousand for the first half of 2019, compared to RMB 70,445 thousand for the same period in 2018[25] - Profit before tax for the first half of 2019 was approximately RMB 83.9 million, an increase of about RMB 1.4 million or approximately 1.7% compared to RMB 82.5 million in the same period of 2018[92] - Net profit attributable to equity holders for the first half of 2019 was approximately RMB 73.4 million, an increase of about RMB 2.3 million or approximately 3.2% compared to RMB 71.1 million in the same period of 2018[94] Dividends and Shareholder Information - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2019[1] - The company did not declare any interim dividends for the six months ended June 30, 2019, and 2018[56] - Major shareholder Jin Yong holds 96,868,662 shares, representing 24.97% of the company's issued share capital[124] - Major shareholder Cui Wei also holds 96,868,662 shares, representing 24.97% of the company's issued share capital[124] - Wellahead holds 28,082,525 shares, accounting for 7.24% of the company's issued share capital[124] - Zhang Zhong holds 28,082,525 shares, representing 7.24% of the company's issued share capital[124] - Wellahead has a further holding of 12,000,000 shares, which is 3.09% of the company's issued share capital[126] Assets and Liabilities - Total assets as of June 30, 2019, were RMB 2,158.7 million, compared to RMB 2,136.1 million as of December 31, 2018[12] - Total liabilities decreased to RMB 515.6 million as of June 30, 2019, from RMB 548.6 million as of December 31, 2018[17] - Net assets increased to RMB 1,643.2 million as of June 30, 2019, from RMB 1,587.5 million as of December 31, 2018[17] - The total equity as of June 30, 2019, was RMB 1,643,157 thousand, a decrease from RMB 1,539,983 thousand as of June 30, 2018[25] - Cash and cash equivalents decreased by RMB 154,054 thousand in the first half of 2019, compared to a decrease of RMB 102,227 thousand in the first half of 2018[23] - Trade receivables as of June 30, 2019, amounted to RMB 930,969,000, an increase of 26.2% from RMB 737,697,000 as of December 31, 2018[62] - Trade payables as of June 30, 2019, were RMB 182,084,000, a decrease of 12.2% from RMB 207,446,000 as of December 31, 2018[65] - The net debt to equity ratio improved to 29.09% as of June 30, 2019, compared to 39.80% on December 31, 2018[112] Cash Flow and Expenses - Cash outflow from operating activities was RMB 131.5 million for the six months ended June 30, 2019, compared to RMB 135.9 million for the same period in 2018[21] - The net cash outflow from investing activities for the first half of 2019 was RMB 10,399 thousand, compared to an inflow of RMB 42,548 thousand in the same period of 2018[23] - The company’s financing activities resulted in a net cash outflow of RMB 12,177 thousand in the first half of 2019, compared to RMB 8,898 thousand in the same period of 2018[23] - Cash and cash equivalents decreased by approximately RMB 159.5 million or about 16.3% to approximately RMB 819.1 million as of June 30, 2019, from approximately RMB 978.6 million as of December 31, 2018[95] - Selling and distribution expenses for the first half of 2019 were approximately RMB 54.4 million, a slight increase of about RMB 0.8 million or approximately 1.5% compared to RMB 53.6 million in the same period of 2018[86] - Administrative expenses decreased by approximately RMB 2.8 million or about 10.9% to approximately RMB 22.8 million in the first half of 2019 from RMB 25.6 million in the same period of 2018[87] - Other operating expenses decreased by approximately RMB 5.0 million or about 13.8% to approximately RMB 31.3 million in the first half of 2019 from RMB 36.3 million in the same period of 2018[88] Revenue Segmentation - Revenue from external customers in the People's Republic of China was RMB 689,949 thousand for the six months ended June 30, 2019, compared to RMB 634,508 thousand in 2018, indicating an increase of approximately 8.7%[47] - Revenue from the RF coaxial cable segment decreased by approximately RMB 59.5 million or 16.1%, from RMB 370.1 million in the first half of 2018 to RMB 310.6 million in the first half of 2019[77] - Revenue from leakage cable increased by approximately RMB 46.4 million or 139.8%, from RMB 33.2 million in the first half of 2018 to RMB 79.6 million in the first half of 2019[78] - Revenue from the antenna segment increased by approximately RMB 20.3 million or 9.2%, from RMB 221.6 million in the first half of 2018 to RMB 241.9 million in the first half of 2019[81] - Revenue from the high-temperature resistant cable and antenna testing services segment increased by approximately RMB 16.7 million or 51.4%, from RMB 32.5 million in the first half of 2018 to RMB 49.2 million in the first half of 2019[82] Research and Development - Research and development expenses for the six months ended June 30, 2019, were RMB 30,476,000, a decrease of 16.0% from RMB 36,254,000 in 2018[51] - The company aims to strengthen its antenna products to meet the future telecommunications network upgrade plans of major domestic telecom operators[81] - The group has intensified new product development and sales efforts, achieving significant growth in high-margin new product business, with the sky line's standard quantity increasing substantially compared to the previous year[116] - The issuance of 5G licenses in China is anticipated to provide new growth momentum for the group, as it has been actively investing in 5G technology research and development[118] - The group has accumulated a strong portfolio of 5G-related products, particularly in areas with broad market demand such as 5G antennas and leakage cables[118] Employee and Share Option Plans - The company has adopted a share option plan to incentivize employees, effective from October 27, 2010[140] - The company has also implemented an employee share incentive plan to motivate key employees for sustainable development[137] - The total number of shares that may be issued upon the exercise of options under the share option plan shall not exceed 10% of the shares issued by the company as of October 27, 2010, which is 33,600,000 shares, accounting for approximately 8.66% of the total shares issued as of June 30, 2019[141] - The exercise price for the options granted under the share option plan is set at 1.00 SGD, payable within 28 days from the grant date[142] - The total number of shares issued and to be issued upon the exercise of any options granted to eligible participants within any 12-month period shall not exceed 1% of the total issued shares of the company[141] Market Conditions and Challenges - In the first half of 2019, the group's revenue decreased by approximately 4.0% compared to the same period last year, primarily due to intensified domestic competition and significant price reductions in concentrated procurement by telecom operators[115] - The revenue from the group's RF coaxial cable segment was adversely affected by prolonged low copper prices, leading to a negative impact on sales revenue[115] - Despite the challenging business environment, the group successfully increased revenue from its sky line, accessories, and leakage cables by approximately RMB 56.7 million or about 12.8% compared to the first half of 2018[115] - In overseas markets, sales declined from approximately RMB 109.3 million in the first half of 2018 to about RMB 80.8 million in the first half of 2019 due to trade war impacts and cautious customer sentiment[115] - The group expects continued challenges in revenue and profitability due to ongoing trade tensions and declining demand and prices in the RF coaxial cable market[118]