Revenue and Profitability - Revenue for the six months ended June 30, 2020, was RMB 38,428,000, a decrease of 8.8% compared to RMB 42,128,000 for the same period in 2019[12] - Gross profit for the same period was RMB 12,500,000, down 14.5% from RMB 14,620,000 in 2019[12] - Profit attributable to shareholders for the period was RMB 1,042,000, representing a significant decline of 85.0% compared to RMB 6,936,000 in 2019[12] - Basic and diluted earnings per share decreased to RMB 0.01, down 75.0% from RMB 0.04 as of December 31, 2019[12] - The Group's net profit for the six months ended June 30, 2020, was approximately RMB 1.15 million, a decline compared to the previous year[15] - Profit for the period attributable to shareholders decreased to RMB 1,151,000, down 79.3% from RMB 5,548,000 in the same period last year[150] Assets and Liabilities - Total assets as of June 30, 2020, were RMB 711,787,000, a decrease of 4.5% from RMB 745,611,000 at the end of 2019[12] - Total liabilities stood at RMB 477,392,000, an increase of 0.9% from RMB 473,203,000 in 2019[12] - Total equity was RMB 632,432,000, showing a slight increase of 0.2% from RMB 631,281,000 at the end of 2019[12] - Current liabilities decreased to RMB 79,355,000 from RMB 114,330,000 at the end of 2019, indicating improved liquidity[91] - Trade payables decreased by approximately 37.8% from approximately RMB 20.3 million as at 31 December 2019 to approximately RMB 12.6 million as at 30 June 2020, primarily due to reduced purchases of raw materials[50] Cash Flow and Liquidity - The total cash and bank balances of the Group were approximately RMB 223.7 million as at 30 June 2020, an increase from approximately RMB 212.2 million as at 31 December 2019[49] - The net cash flows generated from operating activities for the six months ended June 30, 2020, were RMB 9,573,000, a significant improvement compared to a net cash outflow of RMB (35,569,000) for the same period in 2019[96] - Cash and cash equivalents at the end of the period on June 30, 2020, were RMB 82,825,000, down from RMB 93,036,000 at the end of June 30, 2019, representing a decrease of 11.5%[96] - The Group maintains sufficient cash and cash equivalents to manage liquidity risk effectively[118] Inventory and Receivables - Inventory turnover days increased to 7.0 days from 5.1 days in 2019, indicating slower inventory movement[12] - Trade receivables turnover days increased to 456.6 days from 239.7 days in 2019, suggesting longer collection periods[12] - Accounts receivables increased by approximately 9.5% from approximately RMB 137.8 million at 31 December 2019 to approximately RMB 150.9 million as at 30 June 2020, mainly due to delays in collection[50] - Trade receivables (net) as of June 30, 2020, were RMB 101,057,000, down from RMB 145,861,000 at the end of 2019, reflecting a decrease of 30.6%[186] Expenses - Selling expenses for the six months ended June 30, 2020, were approximately RMB 1.2 million, a decrease of approximately 48.3% from approximately RMB 2.4 million in the same period of 2019[32] - Administrative expenses decreased by approximately 0.9% to approximately RMB 13 million for the six months ended June 30, 2020, compared to approximately RMB 13.1 million in the same period of 2019[33] - Employee benefit expenses decreased to RMB 7,576,000, down 18% from RMB 9,231,000 in the prior year[139] Market Conditions and Business Operations - The decline in revenue was mainly attributed to intensified competition in the downstream industry and a drop in market demand for the Group's products, along with delays in delivery and testing of equipment due to COVID-19[19] - The Group is focusing on strengthening technological development and upgrading existing production lines to improve product quality and competitiveness[76] - The domestic demand for tires is expected to continue climbing steadily, indicating significant potential for the tire industry[76] Financial Risk Management - The Group's overall risk management program focuses on minimizing potential adverse effects on financial performance due to market unpredictability[110] - Financial risks include market risk (foreign exchange risk, cash flow and fair value interest rate risk), credit risk, and liquidity risk[110] - The Group has not used any financial instruments to hedge foreign exchange risk, which could impact financial performance[112] Capital Expenditures and Investments - As of June 30, 2020, the Group's capital expenditures amounted to approximately RMB 1.5 million, compared to approximately RMB 0.6 million for the same period in 2019, primarily related to the purchase of machinery and equipment[58] - The Group intends to utilize part of the temporary idle raised proceeds to purchase wealth management products, with an authorization to use up to RMB 35 million for this purpose[64] - The Group has no future plans for material investments and expected sources of funding as of June 30, 2020, except as disclosed in the Prospectus or the report[58]

Financial Performance - Revenue for the year ended December 31, 2019, was RMB 134,757,000, a decrease of 23.8% compared to RMB 176,857,000 in 2018[8] - Operating profit dropped significantly by 87.3% to RMB 6,855,000 from RMB 54,128,000 in the previous year[8] - Profit for the year decreased by 83.2% to RMB 8,079,000, down from RMB 48,054,000 in 2018[8] - Basic and diluted earnings per share attributable to shareholders fell by 84.2% to RMB 0.06 from RMB 0.38[8] - The net profit for the Group in 2019 was RMB8.08 million, reflecting a decline from the previous year[15] - Revenue decreased by approximately RMB42.1 million or approximately 23.8% to approximately RMB134.8 million for 2019 from approximately RMB176.9 million for 2018, mainly due to a drop in unit selling prices[34] Assets and Liabilities - Total assets as of December 31, 2019, increased by 4.1% to RMB 745,611,000 compared to RMB 716,564,000 in 2018[8] - Total liabilities rose by 31.5% to RMB 114,330,000 from RMB 86,962,000 in the previous year[8] - Trade receivables decreased by approximately 1.8% from approximately RMB140.3 million as at 31 December 2018 to approximately RMB137.8 million as at 31 December 2019, mainly due to the decrease of revenue[40] - The allowance for trade receivables decreased from approximately RMB61.7 million at the end of 2018 to approximately RMB50.4 million at the end of 2019[40] - Inventories increased by approximately 35.1% from RMB 65.5 million at the end of 2018 to approximately RMB 88.5 million at the end of 2019, mainly due to an increase in unfinished sales contracts[43] - Trade and notes payables increased by approximately 56.5% from RMB 39.4 million as at 31 December 2018 to approximately RMB 61.6 million as at 31 December 2019, primarily due to increased purchase volumes in the fourth quarter[43] Cash Flow and Financial Resources - Total cash and bank balances as at 31 December 2019 were approximately RMB 212.2 million, down from approximately RMB 278.1 million as at 31 December 2018[43] - The Group has sufficient and readily available financial resources for general working capital and foreseeable capital expenditure[43] - The Group maintained a low gearing ratio and healthy cash flows, as it had no borrowings during the year[17] - The Group had no borrowings as at 31 December 2019, consistent with the position as at 31 December 2018[43] Operational Efficiency - Current ratio decreased to 5.1 from 6.4, indicating a decline in liquidity[8] - Inventory turnover days increased to 239.7 days from 135.2 days, reflecting slower inventory movement[8] - Trade receivables turnover days rose significantly to 531.7 days from 309.6 days, indicating longer collection periods[8] - Trade payables turnover days increased to 55.1 days from 43.7 days, suggesting a longer payment cycle[8] Strategic Outlook - The Board remains optimistic about the long-term prospects of the Group despite the challenges posed by the global economic environment[22] - The Group's proactive strategies include optimizing operational strategies and effectively controlling risks to achieve stable business growth[22] - The domestic demand for radial tires is projected to maintain sustainable growth driven by both tire replacement and new vehicle markets[22] - The tire industry is expected to undergo restructuring, which will enhance market consolidation and economies of scale[22] Management and Governance - The Board was authorized to utilize temporary idle raised proceeds for purchasing wealth management products not exceeding RMB 35 million within one year from the approval date[52] - The Company has complied with the Corporate Governance Code provisions for the year, as confirmed by the Board[158] - The Board has established four committees to oversee different areas of the Company's affairs, including the Audit Committee and the Strategic Committee[165] - The roles of the chairman and chief executive officer are separate to ensure better corporate governance, with Mr. Zhang Degang as chairman and Mr. Zhang Deqiang as general manager[185] Employee and Management Structure - As of December 31, 2019, the Group employed a total of 146 full-time employees, an increase from 138 employees as of December 31, 2018[74] - The total employee remuneration for the year ended December 31, 2019, was approximately RMB18.9 million, compared to approximately RMB16.8 million in 2018, reflecting an increase of about 6.3%[74] - The management team includes experienced professionals with a background in engineering and business management, contributing to the company's strategic goals[96] Audit and Compliance - The Audit Committee consists of three directors, including two independent non-executive directors, ensuring compliance with corporate governance standards[193] - The Audit Committee's main responsibilities include overseeing the effectiveness of the financial reporting system and risk management, as well as reviewing the Group's interim and annual reports[194] - The Board of Supervisors verified the Group's 2019 consolidated financial statements, which fairly reflected the Group's financial position and operating results[151]

Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 42,128,000, a decrease of 59.8% compared to RMB 104,700,000 for the same period in 2018[8]. - Gross profit for the same period was RMB 14,620,000, down 70.8% from RMB 50,082,000 in 2018[8]. - Profit for the period attributable to shareholders was RMB 5,548,000, reflecting an 87.9% decline from RMB 45,714,000 in the previous year[8]. - Earnings per share for the period was RMB 0.04, a decrease of 88.9% compared to RMB 0.36 in 2018[8]. - The overall performance of the Group decreased compared to the same period in 2018, with a net profit of RMB 5.548 million for the six months ended June 30, 2019[14]. - Operating profit decreased to RMB 4,832 thousand, a decline of approximately 90.7% from RMB 52,089 thousand in the previous year[65]. - The total comprehensive income for the period was RMB 5,548 thousand, which included the profit for the period[75]. Assets and Liabilities - Total assets as of June 30, 2019, were RMB 767,185,000, an increase of 3.6% from RMB 740,414,000 in 2018[8]. - Total liabilities stood at RMB 475,483,000, a slight increase of 1.4% from RMB 468,707,000 in the previous year[8]. - Total equity as of June 30, 2019, was RMB 628,750 thousand, slightly down from RMB 629,602 thousand at the end of 2018[70]. - As of June 30, 2019, total cash and bank balances were approximately RMB 243.9 million, down from approximately RMB 278.1 million as at 31 December 2018[33]. - The current ratio was 1.61, down from 1.83 in 2018, indicating a decrease in liquidity[8]. - The current ratio decreased from 6.4 as at 31 December 2018 to 4.4 as at 30 June 2019, primarily due to an increase in trade and other payables and contract liabilities[33]. Revenue Breakdown - Revenue from brass electroplating wire production lines decreased by approximately 42.6% to RMB 28.6 million, down from RMB 49.9 million in the corresponding period of 2018[20]. - Revenue from standalone machinery sales decreased by approximately 79.2% to RMB 4.9 million, with only 39 sets accepted by customers compared to 187 sets in the previous year[25]. - Revenue from mould repairing equipment, component parts, and accessories decreased by approximately 53.1% to RMB 6.7 million, primarily due to reduced equipment modification services[26]. - Revenue from other production lines dropped by approximately 97.5% to RMB 0.4 million, with only one set accepted by customers compared to four sets in the previous year[23]. - Revenue from mainland China was RMB 37,368 thousand, significantly lower than RMB 101,418 thousand in the same period last year, representing a decline of 63.2%[111]. Expenses and Costs - Selling expenses increased by approximately 18.5% to approximately RMB 2.4 million for the six months ended June 30, 2019 from approximately RMB 2.0 million in the corresponding period of 2018[29]. - Administrative expenses decreased by approximately 5.5% from approximately RMB 13.9 million for the six months ended June 30, 2018 to approximately RMB 13.1 million for the six months ended June 30, 2019[29]. - The total cost of sales, selling expenses, and administrative expenses was RMB 40,311 thousand, down 29.5% from RMB 57,264 thousand in the same period of 2018[114]. Inventory and Receivables - Inventory turnover days increased to 417.4 days from 135.2 days in 2018, suggesting slower inventory movement[8]. - Trade receivables turnover days rose to 864.9 days from 309.6 days, indicating longer collection periods[8]. - The total inventory as of June 30, 2019, was RMB 96,363,000, comprising raw materials of RMB 16,802,000, work in progress of RMB 40,106,000, and finished goods of RMB 39,455,000[158]. - Accounts receivable from third parties amounted to RMB 126,268,000, a decrease from RMB 140,275,000 as of December 31, 2018, representing a decline of approximately 10%[171]. Market and Strategic Focus - The company is focusing on enhancing its market presence and exploring new product development strategies[8]. - The company expects the automobile market in China to improve in the second half of 2019 due to new policies and standards, which may ease the current challenges in the tire market[54]. - The company is focusing on developing new product lines for new energy vehicle tires, which have higher requirements for lightweight and low rolling resistance[54]. - The company aims to maintain a stable market share and safeguard shareholder interests amid Sino-US trade frictions and market volatility[55]. Cash Flow and Financing - The net cash flows used in operating activities for the six months ended June 30, 2019, were RMB 35,569 thousand, compared to RMB 2,366 thousand for the same period in 2018, indicating a significant increase in cash outflow[79]. - Cash and cash equivalents totaled RMB 93,036,000 as of June 30, 2019, down from RMB 134,821,000 at the end of 2018, representing a decline of approximately 31%[184]. - The company declared dividends amounting to RMB 6,400 thousand during the period, consistent with the previous year[75]. Employee and Remuneration - As of June 30, 2019, the Group employed a total of 146 full-time employees, an increase from 138 employees as of December 31, 2018[59]. - Total employee remuneration for the six months ended June 30, 2019, was approximately RMB 9.2 million, representing about 21.9% of the Group's total revenue[59]. Risk Management - The Group's overall risk management program focuses on minimizing potential adverse effects on financial performance due to market unpredictability[91]. - Credit risk arises from bank deposits, financial assets at fair value through profit or loss, and trade and other receivables, with the carrying amounts representing the maximum exposure to credit risk[93]. - The Group maintains sufficient cash and cash equivalents to manage liquidity risk effectively, aiming for flexibility in funding through committed credit facilities[103].

r 21 無錫盛力達科技股份有限公司 Wuxi Sunlit Science and Technology Company Limited* (a joint stock company established in the People's Republic of China with limited liability) (在中華人民共和國註冊成立的股份有限公司) Stock Code設份代號：1289 ANNUAL REPORT *For identification purpose only 肇供識別 目錄 CONTENTS 4 財務摘要 Financial Highlights 5 主席報告書 Chairman's Statement 8 管理層討論與分析 Management Discussion and Analysis 22 董事、監事及高級管理層簡歷 Biographies of Directors, Supervisors and Senior Management 86 董事會報告 Report of the Directors 103 獨立核數師報告 Independent Audit ...