5G Technology and Market Development - As of December 2024, China has built over 4.25 million 5G base stations, with 1 billion 5G mobile users, achieving 2.3 times the global average[21] - 5G technology has directly contributed approximately CNY 5.6 trillion to the economy and indirectly driven a total output of about CNY 14 trillion since its commercial launch[21] - The first generation of 5G-Advanced (5G-A) technology standards was officially frozen in June 2024, marking a new development phase for mobile communication technology[23] - The company is actively investing in R&D for 5G-related products, particularly in the millimeter-wave technology sector, to meet market demands for high-performance communication technology[21] - The company is actively positioning itself in the 5G small base station transmission solutions market to meet the growing demand for high-density, high-quality network coverage[55] - The company maintains deep cooperation with major telecom operators and is actively participating in bidding projects to capture market opportunities brought by 5G[30] - The company plans to continue investing in 5G millimeter-wave research and development to meet diverse market demands and enhance competitiveness[76] - The company is closely monitoring the development of 5G-A technology and plans to align with market demands as it evolves[73] Financial Performance - The total revenue for 2024 was RMB 2,509,152 thousand, slightly up from RMB 2,505,763 thousand in 2023[46] - The company reported a net loss of RMB 7,914 thousand for 2024, improving from a net loss of RMB 22,547 thousand in 2023, resulting in a net loss margin of (0.3%) compared to (0.9%) the previous year[46] - The gross profit for 2024 was RMB 293,609 thousand, with a gross margin of 11.7%, down from a gross profit of RMB 316,521 thousand and a margin of 12.6% in 2023[46] - The operating cash flow for 2024 was RMB 469,988 thousand, down from RMB 668,322 thousand in 2023, while capital expenditure increased to RMB 8,337 thousand from RMB 1,445 thousand[46] - The company's overall gross profit decreased by approximately 7.2% from RMB 316.5 million in 2023 to RMB 293.6 million in 2024, with a gross profit margin of 11.7%, down by about 0.9 percentage points year-on-year[57] - The trade receivables impairment loss under the expected credit loss model decreased by approximately RMB 39.9 million or 24.1% to RMB 125.6 million in 2024, compared to RMB 165.6 million in 2023[59] - The sales revenue of the feeder cable series, which accounts for about 44.4% of total revenue, decreased by approximately 7.1% to about RMB 1,115 million in 2024[61] - The revenue from the flame-retardant soft cable series increased by approximately 8.0% year-on-year to about RMB 1,047,800,000, accounting for approximately 41.8% of total revenue[62] - The revenue from the optical cable series and related products rose by about 5.2% year-on-year to approximately RMB 212,300,000, representing about 8.5% of total revenue[63] - Revenue from China Mobile, China Unicom, and China Telecom accounted for approximately 53.2%, 24.0%, and 13.3% of total revenue, respectively[64] Research and Development - The company has initiated research and development for 6G products, anticipating commercialization around 2030, with a focus on breakthroughs in technology and industry layout in the next 3 to 5 years[29] - The company has developed a series of new millimeter-wave products, including 24 GHz power amplifiers and 75–110 GHz low-noise amplifiers, which have gained wide recognition in the market[23] - The company has developed a series of new millimeter-wave products in response to customer demand, including phase shifters and power amplifiers, which have received widespread recognition in the industry[54] - Research and development costs increased by approximately RMB 4,300,000 or about 8.6% to RMB 54,300,000 in 2024, driven by higher expenses related to communication technology research[86] - The company plans to continue expanding its IoT business and is exploring suitable investment opportunities to further broaden its business footprint[27] Corporate Governance - The company has adopted the corporate governance code as its own governance code, ensuring compliance with the relevant rules[115] - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors[118] - The company has established a corporate governance committee to review and recommend governance policies[115] - The independent non-executive directors bring extensive experience in auditing, accounting, and finance to the board[108] - The company believes that having the same individual serve as both chairman and CEO enhances strategic planning and decision-making efficiency[128] - The audit committee consists of independent non-executive directors, ensuring compliance with corporate governance codes[131] - The company has purchased liability insurance for directors and senior management for the year ending December 31, 2024[126] - The board evaluates the independence of directors annually, considering various factors including experience and commitment[124] Environmental, Social, and Governance (ESG) Matters - The company is committed to sustainable development and responsible management of environmental, social, and governance (ESG) matters[165] - The board has ultimate oversight responsibility for ESG matters, ensuring alignment with strategic growth[167] - The ESG working group is responsible for collecting and analyzing ESG data, monitoring performance, and ensuring compliance with relevant laws[168] - The group emphasizes stakeholder engagement as essential for enhancing sustainability performance, involving shareholders, customers, suppliers, employees, and regulatory bodies[169] - The report covers the group's overall environmental, social, and governance issues from January 1, 2024, to December 31, 2024, focusing on three subsidiaries in Jiangsu Province, China[171] - The group has established an environmental management system certified by GB/T 24001-2016/ISO 14001:2015, aiming to reduce pollutant emissions through optimized processes[184] - The group maintains a focus on clean production to balance economic benefits with ecological responsibilities[184] - The importance matrix indicates that emissions management and resource usage are among the top priorities for the group[181] Emissions and Environmental Impact - Total emissions of nitrogen oxides (NOX) increased to 14.00 kg in 2024 from 12.66 kg in 2023, representing an increase of approximately 10.6%[187] - Total emissions of sulfur oxides (SOX) rose to 0.31 kg in 2024 from 0.28 kg in 2023, reflecting an increase of about 10.7%[187] - Total particulate matter (PM) emissions increased to 1.03 kg in 2024 from 0.93 kg in 2023, which is an increase of approximately 10.8%[187] - Direct greenhouse gas emissions (Scope 1) rose to 658.41 tons in 2024 from 553.82 tons in 2023, marking an increase of about 18.9%[190] - Indirect greenhouse gas emissions (Scope 2) decreased to 5,185.66 tons in 2024 from 5,468.18 tons in 2023, showing a reduction of approximately 5.2%[190] - Total greenhouse gas emissions (Scope 1, 2, and 3) decreased to 6,037.56 tons in 2024 from 6,180.56 tons in 2023, indicating a reduction of about 2.3%[190] - The average greenhouse gas emission intensity for production per kilometer of feeder line was approximately 29.29 tons CO2 equivalent in 2024, down from 29.78 tons in 2023, a decrease of about 1.6%[193] - The total hazardous waste generated decreased to 354 kg in 2024 from 503 kg in 2023, representing a reduction of approximately 29.6%[199] - The density of hazardous waste per thousand kilometers of feeder line decreased to 1.72 kg in 2024 from 2.42 kg in 2023, a reduction of about 29%[199]

避险情绪下，美债继续走强。4月3日早盘盘中，美国10年和2年期国债收益率下跌10个基点，分别报 4.06%和3.798%。 A股市场相关标的中，场内的美元债LOF（501300.SH）早盘上涨0.82%，半日成交额超3000万元。 资料显示，美元债LOF（501300.SH）是一只QDII型债券基金，最新的基金年度报告显示，该基金主要 投资于全球市场的各类美元债券。2024年该基金基本保持美国国债+中资美元债的配置策略，以中短久 期投资级中资美元债为底仓，采用分散投资的方法尽可能分散风险，在保证组合较高票息的情况下，酌 情配置长久期美国国债来调整组合久期。 消息面上，据央视新闻，当地时间4月2日，美国白宫发表声明称，美国总统特朗普当日宣布国家紧急状 态，以提高美国的竞争优势，保护美国主权，并加强美国国家和经济安全。声明称，特朗普将对所有国 家征收10%的"基准关税"，该关税将于美国东部时间4月5日凌晨0时01分生效。此外，特朗普将对美国 贸易逆差最大的国家征收个性化的更高"对等关税"，该关税将于美国东部时间4月9日凌晨0时01分生 效，所有其他国家将继续遵守原有的10%关税基准。声明还称，特朗普拥有"修改权限 ...

Financial Performance - The group's revenue for the year ended December 31, 2024, was approximately RMB 2,509,200,000, representing an increase of about RMB 3,400,000 or approximately 0.1% compared to RMB 2,505,800,000 in 2023[2] - The net loss for the year was approximately RMB 7,900,000, a significant reduction of about RMB 14,600,000 or 64.9% from RMB 22,500,000 in 2023[3] - The gross profit margin decreased by approximately 0.9 percentage points to about 11.7% compared to 12.6% in 2023[5] - The expected credit loss impairment decreased to approximately RMB 125,600,000 for 2024 from RMB 165,600,000 in 2023[3] - The operating profit before expected credit loss impairment was approximately RMB 171,400,000 for 2024, down from RMB 194,600,000 in 2023[3] - The basic loss per share decreased to RMB 0.44 from RMB 1.26 in 2023[5] - The total revenue for the year ended December 31, 2024, was RMB 2,509,152,000, a slight increase from RMB 2,505,763,000 in 2023[18] - The company reported a net loss for the year of RMB 7,914,000 in 2024, compared to a net loss of RMB 22,547,000 in 2023, indicating an improvement in financial performance[19] Assets and Liabilities - The total assets less current liabilities amounted to approximately RMB 3,599,735,000 in 2024, compared to RMB 3,543,946,000 in 2023[7] - The group's non-current assets included property, plant, and equipment valued at RMB 140,915,000, down from RMB 154,741,000 in 2023[7] - The group's cash and cash equivalents were RMB 464,418,000 in 2024, compared to RMB 549,358,000 in 2023[7] - Trade receivables net amount for 2024 was RMB 4,103,198,000, slightly up from RMB 4,097,807,000 in 2023[32] - As of December 31, 2024, the company had trade payables amounting to RMB 146,669,000, an increase from RMB 113,760,000 in 2023[35] - As of December 31, 2024, the total bank borrowings amounted to approximately RMB 1,479,300,000, including RMB 1,089,500,000 in bank loans and RMB 394,000,000 in notes payable[78] - The capital-to-debt ratio decreased from approximately 27.4% as of December 31, 2023, to about 26.3% as of December 31, 2024, primarily due to a reduction in bank borrowings[80] Revenue Sources - Major customers included China Mobile, contributing RMB 1,335,404,000 in 2024, up from RMB 1,084,288,000 in 2023, representing a growth of approximately 23.1%[21] - The group's revenue from China Mobile, China Unicom, and China Telecom accounted for approximately 53.2%, 24.0%, and 13.3% of total revenue, respectively[52] - The revenue from the flame-retardant soft cable series increased by approximately 8.0% to about RMB 1,047,800,000, while the gross margin decreased by about 1.1 percentage points to approximately 9.7%[48] - The revenue from the feeder series decreased by approximately 7.1% to about RMB 1,115,011,000, with a gross margin of about 12.2%, down approximately 1.0 percentage point[47] - The revenue from optical fiber series and related products increased by approximately 5.2% to about RMB 212,300,000, with sales volume rising by approximately 1,505,000 core kilometers[49] Research and Development - The company has invested heavily in R&D to enhance competitiveness, focusing on telecom equipment sales[53] - The group holds 277 patents in China, including 113 invention patents and 164 utility model patents as of December 31, 2024[55] - Research and development costs increased to RMB 54,322,000 in 2024 from RMB 50,023,000 in 2023, reflecting a rise of about 8.5%[19] - The company developed a series of millimeter-wave new products in response to customer demand, including 37–42 GHz phase shifters and 24 GHz power amplifiers, which received broad recognition within the industry[40] - The group is focusing on the development of millimeter-wave technology to meet the increasing demands of new applications such as XR and industrial digitization[63] Market Position and Strategy - The group has established a leading position in the market with a strong track record, diverse product offerings, and high-quality after-sales service, particularly among China's three major telecom operators[52] - The group plans to leverage the growth opportunities presented by 5G by investing in innovative R&D and enhancing its technical reserves and product development in the 5G field[58] - The group plans to enhance its 5G-A business deployment in 39 key urban areas and over 300 other cities, strengthening the industrial ecosystem[61] - The company has been actively supplying 5G-related products to customers, capitalizing on the growth opportunities in the 5G industry[38] - The company is committed to customizing products for long-term partners in regions like Thailand and South Korea, enhancing its market presence[64] Governance and Compliance - The Audit Committee, consisting of independent non-executive directors, is responsible for overseeing the financial reporting process and internal controls[88] - The company has adopted the standard code of conduct for securities trading, confirming that all directors complied with the trading standards for the year ending December 31, 2024[91] - The consolidated financial statements for the year ending December 31, 2024, have been confirmed by Deloitte as compliant with the board's approval[92] - The company believes that having the same individual serve as both Chairman and CEO ensures consistent leadership and effective strategic planning[87] - The company emphasizes the balance of power and authority between the board and management to ensure effective decision-making[87]

Financial Performance - Revenue decreased by approximately RMB 91.5 million or about 7.3% to approximately RMB 1,159 million for the six months ended June 30, 2024[6]. - Gross profit margin decreased by approximately 0.3 percentage points to about 12.3%[6]. - Profit for the period increased by approximately RMB 6.4 million or about 18.5% to approximately RMB 40.9 million compared to RMB 34.5 million in the first half of 2023[6]. - Net profit margin increased from approximately 2.8% in the first half of 2023 to approximately 3.5% in the first half of 2024[6]. - Earnings per share increased from RMB 1.93 to RMB 2.28[6]. - Total comprehensive income for the period amounted to RMB 40.876 million[14]. - The group reported total revenue of RMB 1,159,039 thousand for the six months ended June 30, 2024, compared to RMB 1,250,560 thousand for the same period in 2023, reflecting a decrease of approximately 7.3%[32]. - The gross profit for the group was RMB 142,219 thousand for the six months ended June 30, 2024, down from RMB 157,394 thousand in the same period of 2023, indicating a decline of about 9.6%[32][34]. - The group’s net profit for the period was RMB 40,876 thousand, compared to RMB 34,489 thousand for the same period in 2023, representing an increase of approximately 18.5%[32][34]. - Other income increased to RMB 16,482 thousand for the six months ended June 30, 2024, up from RMB 8,440 thousand in the same period of 2023, marking a significant increase of 95.5%[38]. Expenses and Costs - Administrative expenses increased to RMB 25.825 million from RMB 21.109 million[14]. - Research and development costs were RMB 28.977 million[14]. - Financing costs amounted to RMB 25.055 million[14]. - The group’s research and development costs amounted to RMB 28,977 thousand for the six months ended June 30, 2024, compared to RMB 23,713 thousand in the same period of 2023, reflecting an increase of approximately 22.0%[32][34]. - The group’s financing costs were RMB 25,055 thousand for the six months ended June 30, 2024, compared to RMB 27,520 thousand in the same period of 2023, showing a decrease of about 8.9%[32][34]. - The company recognized a deferred tax expense of RMB 9,862,000 for the six months ended June 30, 2024, compared to RMB 9,007,000 for the same period in 2023[41]. - The depreciation of property, plant, and equipment was RMB 8,848,000 for the six months ended June 30, 2024, down from RMB 10,222,000 for the same period in 2023, indicating a decrease of approximately 13.5%[40]. Assets and Liabilities - As of June 30, 2024, total assets amounted to RMB 5,454,754 thousand, a slight decrease from RMB 5,401,494 thousand as of December 31, 2023, reflecting a 1% decline[16]. - Current assets increased to RMB 5,082,319 thousand from RMB 5,021,369 thousand, representing a 1.2% growth[16]. - Total liabilities decreased slightly to RMB 1,868,482 thousand from RMB 1,857,548 thousand, a change of 0.6%[16]. - The company’s total equity rose to RMB 3,562,674 thousand from RMB 3,521,798 thousand, representing a 1.2% increase[16]. - The company’s cash and cash equivalents at the end of the period were RMB 589,318 thousand, up from RMB 549,358 thousand, reflecting a 7.3% increase[26]. - The total trade receivables balance as of June 30, 2024, was RMB 2,362,736,000, an increase from RMB 2,175,280,000 as of December 31, 2023, indicating a growth of approximately 8.6%[48]. - The net trade receivables aged over 365 days amounted to RMB 2,354,755,000 as of June 30, 2024, compared to RMB 2,175,134,000 as of December 31, 2023, showing an increase of approximately 8.2%[50]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2024, was RMB 409,350 thousand, up from RMB 255,673 thousand in the same period of 2023, indicating a 60% increase[26]. - The company reported a net cash inflow from investing activities of RMB 35,342 thousand, compared to RMB 25,326 thousand in the previous year, marking a 39.7% increase[26]. - The group’s expected credit loss model showed a loss of RMB 7,493 thousand for the six months ended June 30, 2024, compared to a loss of RMB 23,793 thousand in the same period of 2023, indicating an improvement in credit quality[32][34]. - Trade receivables impairment losses decreased by approximately RMB 16.3 million or 68.5% to RMB 7.5 million, reflecting better-than-expected recovery of trade receivables[82]. Market and Business Strategy - The company plans to continue expanding its market presence and investing in new product development, although specific figures were not disclosed[19]. - The company is actively pursuing 5G small base station transmission solutions to capture market opportunities as demand increases[62]. - The company is focusing on the development of 5G-Advanced (5G-A) technology, which will enhance network performance and create new business opportunities[61]. - The company is expanding its product offerings in millimeter-wave technology, developing new products to meet customer demands and strengthen its market position[61]. - The company plans to expand its overseas market presence, particularly in Japan and Malaysia, focusing on promoting millimeter-wave products[77]. - The company has won multiple centralized procurement projects, including a two-year project for power cable products from China Mobile, laying a solid foundation for future business growth[62]. - Revenue from major telecom operators accounted for approximately 52.7% from China Mobile, 21.2% from China Unicom, and 16.4% from China Telecom as of June 30, 2024[68]. Corporate Governance and Compliance - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2024[6]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules, with the chairman and CEO roles currently held by the same individual[98]. - The independent auditor conducted a review of the interim financial information for the six months ended June 30, 2024, in accordance with the Hong Kong Institute of Certified Public Accountants standards[125]. - The company established an audit committee responsible for reviewing and monitoring financial reporting procedures, internal controls, and risk management systems[125]. Employment and Human Resources - The company employed approximately 789 employees as of June 30, 2024, an increase from 721 employees on December 31, 2023[96]. - The company has invested in continuous education and training programs for its management and staff to enhance their skills and knowledge[96]. Research and Development - The company has a strong focus on R&D, investing heavily to enhance competitiveness in the telecom equipment sales sector[69]. - The company has obtained a total of 252 patents, including 108 invention patents and 144 utility model patents as of June 30, 2024[71].

Financial Performance - Revenue decreased by approximately RMB 91.5 million or about 7.3% to approximately RMB 1,159 million for the six months ended June 30, 2024[1]. - Gross profit margin declined by approximately 0.3 percentage points to about 12.3%[1]. - Profit for the period increased by approximately RMB 6.4 million or about 18.5% to approximately RMB 40.9 million compared to RMB 34.5 million in the first half of 2023[1]. - Net profit margin increased from approximately 2.8% to approximately 3.5%[1]. - Earnings per share rose from RMB 1.93 to RMB 2.28[1]. - The group reported total revenue of RMB 1,159,039 thousand for the six months ended June 30, 2024, compared to RMB 1,250,560 thousand for the same period in 2023, indicating a decrease of approximately 7.3%[10]. - The gross profit for the group was RMB 142,219 thousand for the six months ended June 30, 2024, down from RMB 157,394 thousand in the same period of 2023, reflecting a decline of about 9.6%[11]. - The group’s net profit for the six months ended June 30, 2024, was RMB 40,876 thousand, compared to RMB 34,489 thousand for the same period in 2023, representing an increase of approximately 18.5%[12]. - Profit before tax for the six months ended June 30, 2024, was RMB 1,013,872,000, compared to RMB 1,088,420,000 for the same period in 2023, reflecting a decrease of 6.9%[16]. - Tax expenses for the six months ended June 30, 2024, amounted to RMB 9,862,000, an increase of 9.5% from RMB 9,007,000 in the same period of 2023[17]. Assets and Liabilities - Total assets less current liabilities amounted to RMB 3,586.3 million as of June 30, 2024, compared to RMB 3,543.9 million as of December 31, 2023[3]. - Current assets net value increased to RMB 3,213.8 million from RMB 3,163.8 million[3]. - Trade receivables net amount as of June 30, 2024, was RMB 4,104,472,000, slightly up from RMB 4,097,807,000 as of December 31, 2023[20]. - Trade payables aged 0 to 90 days as of June 30, 2024, were RMB 130,722,000, significantly higher than RMB 61,768,000 as of December 31, 2023[22]. - The net debt of the group as of June 30, 2024, was approximately RMB 1,642,100,000, which includes bank borrowings of approximately RMB 1,202,000,000[54]. - The capital-to-debt ratio decreased from approximately 27.4% as of December 31, 2023, to approximately 25.4% as of June 30, 2024[55]. - The group has no significant contingent liabilities as of June 30, 2024[57]. Dividends and Shareholder Information - The company did not recommend the distribution of an interim dividend for the six months ended June 30, 2024[1]. - The company did not declare an interim dividend for the six months ended June 30, 2024, compared to no dividend declared for the same period in 2023[18]. - The company’s deferred tax liabilities related to undistributed profits were calculated at a 10% withholding tax rate for the expected dividend flow[18]. - The board did not recommend the distribution of an interim dividend for the six months ended June 30, 2024[59]. - The interim results were published on the Hong Kong Stock Exchange and the company's website, covering the six months ending June 30, 2024[65]. - The company will send the interim report to shareholders as required, containing all information mandated by listing rules[65]. Research and Development - Research and development costs rose to RMB 28.98 million from RMB 23.71 million[2]. - The group’s research and development costs for the six months ended June 30, 2024, amounted to RMB 28,977 thousand, compared to RMB 23,713 thousand for the same period in 2023, indicating an increase of about 22.5%[11]. - Research and development costs rose by approximately RMB 5.3 million or 22.2% to about RMB 29 million, influenced by the progress of research projects[50]. - The company is focusing on expanding its 5G millimeter-wave products, anticipating significant contributions to business growth[39]. Market and Industry Trends - The group is focusing on the development of 5G small base station solutions to capture market opportunities as demand increases[26]. - The government is promoting the evolution of 5G networks towards 5G-Advanced (5G-A), which will enhance network performance and create new business opportunities[25]. - The optical fiber and cable industry is anticipated to undergo transformation and upgrades, with the market size expected to reach RMB 27.27 billion by 2026 according to Yidu data[36]. - 5G-A commercial launch is underway, with plans for deployment in 300 cities by the end of 2024, marking a significant upgrade before the formal commercialization of 6G technology[37]. Customer and Revenue Breakdown - The group’s operating segments include feeder series, flame-retardant soft cable series, optical cable series, new electronic components, and others, with the feeder series generating the highest revenue of RMB 542,802 thousand for the six months ended June 30, 2024[11]. - Major customers include China Mobile, China Unicom, and China Telecom, contributing approximately 52.7%, 21.2%, and 16.4% to total revenue respectively[31]. - The flame-retardant soft cable series accounted for approximately 39.9% of total revenue, with a year-on-year decline of about 1.8% to approximately RMB 462.3 million, and a gross margin decrease of about 0.9 percentage points to approximately 9.9%[29]. - The optical cable series and related products saw a year-on-year revenue increase of approximately 1.3% to about RMB 84.7 million, with sales volume rising by approximately 229,000 core kilometers to about 1,574,000 core kilometers, and a gross margin increase of about 1.2 percentage points to approximately 14.7%[30]. Operational Efficiency - The group’s sales cost for the six months ended June 30, 2024, was RMB 1,016,820 thousand, compared to RMB 1,093,166 thousand for the same period in 2023, showing a decrease of approximately 7.0%[12]. - The cost of goods sold also declined by approximately RMB 76.3 million or 7.0% to about RMB 1,016.8 million in the first half of 2024[42]. - The group reported a decrease in inventory provision from RMB 1,908,000 in 2023 to RMB 808,000 in 2024, indicating improved inventory management[16]. - Impairment losses on trade receivables decreased by approximately RMB 16.3 million or 68.5% to about RMB 7.5 million in the first half of 2024[46]. Future Outlook - The group expects the application of the revised Hong Kong Accounting Standards to impact the disclosures related to liabilities and cash flows from supplier financing arrangements in the consolidated financial statements for the year ending December 31, 2024[9]. - The group’s liquidity risk disclosures will be enhanced due to the revised accounting standards, which require more detailed information on supplier financing arrangements[9]. - The company plans to enhance its global presence by actively developing overseas markets, particularly in Japan and Malaysia[40]. - The global economic activity is expected to continue a moderate recovery, with the IMF predicting a 3.2% growth rate for 2024, and China's economic growth forecast raised to 5.0%[36].

5G Development and Market Impact - As of December 2023, China has built a total of 3.377 million 5G base stations, with 805 million 5G mobile users, and 5G network access traffic accounting for 47%[17] - The economic output directly driven by 5G is projected to reach RMB 1.86 trillion in 2023, representing a 29% increase compared to 2022[17] - The company is focusing on R&D investments in 5G-related products, particularly in the millimeter-wave technology area, to meet market demand and maintain competitive advantage[17] - The company is participating in the development of 5G small base stations, which are expected to grow at a compound annual growth rate of 18% from 2020 to 2026, with a projected total of 49 million small base stations deployed globally by 2026[28] - The company is focusing on research and development of 5G-A technology, which is expected to enhance transmission rates by tenfold compared to 5G, with commercial equipment planned for release in 2024[24] - The company is actively developing a series of new millimeter-wave products, including 1–40 GHz low-noise amplifiers and 75–110 GHz detectors, receiving positive market feedback and new orders[19] - The company is actively developing millimeter-wave products, including 92–96 GHz mixers and 75–110 GHz frequency doublers, to capture market opportunities in the 5G sector[50] Financial Performance - The company reported a revenue of RMB 3,542,107 thousand for 2023, representing an increase from RMB 2,873,078 thousand in 2022[31] - The net profit attributable to the company's owners for 2023 was RMB 358,969 thousand, a significant recovery from a loss of RMB 139,364 thousand in 2020[34] - The earnings per share for 2023 was RMB 20.04, compared to a loss of RMB 7.78 in 2020[36] - Total revenue for 2023 was RMB 2,505,763 thousand, a decrease of 4.7% from RMB 2,630,326 thousand in 2022[40] - Gross profit for 2023 was RMB 316,521 thousand, with a gross margin of 12.6%, down from 13.4% in 2022[40] - The net loss for 2023 was RMB 22,547 thousand, improving from a net loss of RMB 56,362 thousand in 2022, resulting in a net loss margin of (0.9%) compared to (2.1%) in the previous year[40] - Cash generated from operating activities for 2023 was RMB 668,322 thousand, significantly up from RMB 190,677 thousand in 2022[40] Product Offerings and Market Strategy - The company has expanded its product offerings to include flame-retardant soft cables, which have gained popularity among customers since their introduction in 2010[7] - The company aims to expand its market share in the optical fiber market, which is projected to reach RMB 589.5 billion by 2026, growing at a compound annual growth rate of 9% from 2021[25] - The company is actively pursuing investment opportunities in the Internet of Things (IoT) sector, with a projected compound annual growth rate of 16.4% over the next five years in China[21] - The company is focusing on expanding its market presence in the 5G small cell base station segment, which is expected to grow significantly in the coming years[48] - The company plans to strengthen its layout of millimeter-wave products and expand both domestic and international markets[50] Client Relationships and Market Position - Major clients include the three largest telecom operators in China: China Mobile, China Unicom, and China Telecom, as well as China Tower Corporation[8] - The company has maintained business relationships with 29 out of 31 provincial subsidiaries of China Mobile and China Telecom, and all 31 subsidiaries of China Unicom[63] - Revenue from China Mobile, China Unicom, and China Telecom accounted for approximately 43.3%, 33.2%, and 12.2% of total revenue, respectively[63] Corporate Governance and Management - The company appointed Ms. Xu Xiuling as an independent non-executive director effective March 1, 2024, bringing over 13 years of financial management experience in listed companies[115] - Mr. Li Yaowei serves as the Chief Financial Officer and Company Secretary, with over 16 years of experience in corporate finance, accounting, and auditing[116] - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring a diverse and independent governance structure[122] - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance and transparency in governance practices[120] - The company has established a corporate governance committee to review and recommend governance policies and practices to the board[120] Environmental, Social, and Governance (ESG) Initiatives - The governance framework includes a board of directors responsible for overseeing environmental, social, and governance (ESG) matters, supported by an ESG working group[176] - The ESG working group collects and analyzes data to monitor the company's performance and ensure compliance with relevant laws and regulations[177] - The report covers the company's ESG issues and related data for the period from January 1, 2023, to December 31, 2023[181] - The company has established an environmental management system certified under GB/T24001–2016/ISO14001:2015 standards[194] - The company received honors such as "Green Enterprise" and "Ecological Civilization Demonstration Unit" in Yixing City, reflecting its commitment to environmental protection[195] Emissions and Environmental Compliance - Total emissions of nitrogen oxides (NOX) increased to 12.66 kg in 2023 from 12.03 kg in 2022, representing a rise of approximately 5.2%[197] - Sulfur oxides (SOX) emissions decreased to 0.28 kg in 2023 from 0.33 kg in 2022, showing a reduction of about 15.2%[197] - Particulate matter (PM) emissions slightly increased to 0.93 kg in 2023 from 0.89 kg in 2022, indicating a rise of approximately 4.5%[197] - The company reported no significant violations of environmental laws regarding air and greenhouse gas emissions during the year[194]

Financial Performance - The group's revenue for the year ended December 31, 2023, was approximately RMB 2,505,800,000, a decrease of about RMB 124,600,000 or approximately 4.7% compared to RMB 2,630,300,000 in 2022[4] - The gross profit margin decreased by approximately 0.8 percentage points to about 12.6% in 2023, down from 13.4% in 2022[4] - The net loss for the year was approximately RMB 22,500,000, a reduction of about RMB 33,800,000 or 60.0% compared to RMB 56,400,000 in 2022[4] - The loss rate decreased by approximately 1.2 percentage points to about 0.9% in 2023, compared to 2.1% in 2022[4] - The expected credit loss under the impairment model for the year was approximately RMB 165,600,000, down from RMB 203,900,000 in 2022[2] - The company decided not to recommend the payment of a final dividend for the year, consistent with the previous year[4] - The total assets less current liabilities amounted to RMB 3,543,946,000, a slight decrease from RMB 3,568,941,000 in 2022[12] - The net assets of the company were RMB 3,521,798,000, compared to RMB 3,544,427,000 in 2022[12] - The overall gross profit fell from approximately RMB 352.3 million in 2022 to RMB 316.5 million in 2023, a decrease of about 10.2%[60] - The total loss attributable to the company's owners for 2023 was RMB (22,547) thousand, significantly improved from RMB (56,362) thousand in 2022, reflecting a reduction of about 60%[38] Revenue Sources - The revenue from the feeder series decreased by approximately 3.4% to about RMB 1,200.3 million, accounting for approximately 47.9% of total revenue[64] - The revenue from the flame-retardant soft cable series decreased by approximately 5.7% to about RMB 970.3 million, representing approximately 38.7% of total revenue[65] - The revenue from the optical cable series decreased by approximately 3.4% to about RMB 201.8 million, with sales volume increasing by approximately 268,000 core kilometers[67] - The company’s revenue from major customers included RMB 1,084,288 thousand from China Mobile, RMB 832,175 thousand from China Unicom, and RMB 305,273 thousand from China Telecom for 2023, showing varied performance among key clients[135] Research and Development - Research and development costs for the year were RMB 50,023,000, an increase from RMB 44,195,000 in 2022[10] - The group invests heavily in R&D annually to enhance competitiveness in the telecom equipment sales business[75] - The group is actively involved in the innovation and R&D of 5G-related products, including optical-electrical hybrid cables and low-loss connectors[81] - The group plans to increase R&D and production investment in products within the 75–110 GHz frequency range, anticipating significant revenue contributions from millimeter-wave business in the next two years[82] Market and Industry Trends - As of December 2023, China has built and opened 3.377 million 5G base stations, with 5G mobile phone users reaching 805 million, accounting for 47% of network access traffic[49] - In 2023, the global number of new 5G users reached 610 million, with total 5G users surpassing 1.6 billion, and China being the largest market for new user growth[50] - The number of 5G application cases has accumulated to over 94,000, with applications expanding into key sectors such as industry, healthcare, education, and transportation[51] - 5G technology is expected to surpass 4G as the most mainstream mobile technology in China by 2024, with a projected 1 billion 5G connections by 2025[79] Operational Efficiency - The net cash generated from operating activities for the year ended December 31, 2023, was RMB 668,322,000, a significant increase from RMB 190,677,000 in 2022, representing a growth of approximately 250%[105] - The net cash generated from investing activities increased to RMB 16,726,000 in 2023 from RMB 3,802,000 in 2022, marking a rise of about 340%[105] - The financing costs decreased to RMB 54,520 thousand in 2023 from RMB 61,706 thousand in 2022, a decline of about 11.5%[33] - Total employee costs amounted to RMB 87,106 thousand in 2023, down from RMB 91,384 thousand in 2022, reflecting a decrease of approximately 4.5%[129] Strategic Initiatives - The company is exploring investment opportunities in the Internet of Things (IoT) sector, with expectations of significant growth in China's IoT spending, projected to reach nearly USD 300 billion by 2027[85] - The company is actively participating in tenders with China Broadcasting Network and strengthening long-term partnerships with major telecom operators[86] - The group is preparing for the transition to 5.5G and is also exploring key technologies for 6G development[81] - The group aims to enhance its market presence by participating in various industry exhibitions and offering customized products to clients[84] Governance and Compliance - The board confirmed compliance with the trading standards as of December 31, 2023, ensuring governance and transparency[120] - The annual general meeting is scheduled for May 21, 2024, with a registration suspension period from May 16 to May 21, 2024[114] - The annual report will be published on the company’s website and the stock exchange, providing detailed financial information for stakeholders[125]

Financial Performance - For the six months ended June 30, 2023, total revenue reached RMB 1,244,756,000, a significant increase compared to the previous period[4] - The gross profit for the six months was RMB 178,454,000, representing a gross margin of approximately 14.3%[4] - The company reported a net profit of RMB 49,677,000 for the six months, with a pre-tax profit of RMB 75,999,000[4] - In the first half of 2023, the group's revenue slightly increased by approximately RMB 5.8 million or 0.5% to about RMB 1,250.6 million[61] - The total revenue for the first half of 2023 was approximately RMB 1,250.6 million, a slight increase of RMB 5.8 million or 0.5% from RMB 1,244.8 million in the first half of 2022[96] - The group's profit for the first half of 2023 decreased by approximately RMB 15,200,000 or 30.6% to about RMB 34,500,000 compared to RMB 49,700,000 in the first half of 2022[102] Trade Receivables and Impairment - As of June 30, 2023, trade receivables included notes receivable of RMB 22,023,000, down from RMB 36,222,000 at the end of 2022[20] - The overdue trade receivables as of June 30, 2023, totaled RMB 3,020,805,000, compared to RMB 2,733,204,000 on December 31, 2022, indicating an increase of about 10.5%[37] - The group reported a net trade receivables aging of over 365 days at RMB 1,956,644,000, up from RMB 1,817,506,000 as of December 31, 2022, representing a rise of approximately 7.7%[37] - Trade receivables impairment losses increased by approximately RMB 11,100,000 or 87.8% to RMB 23,800,000 in the first half of 2023 from RMB 12,700,000 in the same period of 2022, attributed to an increase in the aging of trade receivables[137] Borrowings and Financial Position - The company obtained new short-term bank loans of RMB 890,000,000 during the reporting period, compared to RMB 791,000,000 in the same period last year[26] - The group's bank borrowings stood at RMB 1,205,000,000 as of June 30, 2023, slightly down from RMB 1,210,000,000 at the end of 2022[40] - As of June 30, 2023, the group had bank balances and cash of approximately RMB 709,400,000, with total borrowings amounting to approximately RMB 1,665,900,000[124] - The capital-to-debt ratio slightly decreased from approximately 27.0% as of December 31, 2022, to approximately 26.7% as of June 30, 2023, mainly due to a slight reduction in borrowings[143] Government Subsidies and Other Income - The company received government subsidies totaling RMB 1,515,000, compared to RMB 1,410,000 in the previous year[7] - Other income decreased by approximately RMB 500,000 or 5.3% to about RMB 8,400,000, primarily due to a reduction in fiber resale income[119] Research and Development - Research and development costs increased by approximately RMB 800,000 or 3.7% to RMB 23.7 million in the first half of 2023, influenced by the progress of research projects[100] - The company is actively engaged in the research and development of 6G products and plans to launch a full suite of 5.5G network equipment in 2024[91] - The group plans to actively invest in the research and development of new products, including optical-electrical hybrid cable components for 5G base stations and NEX10 series broadband low-loss connectors[111] Market and Product Performance - The group's main product, the flame-retardant soft cable series, saw a revenue decline of approximately 2.2% to about RMB 470.7 million, with a gross margin decrease of 2.0 percentage points to approximately 10.8%[64] - Revenue from the lock line series increased by approximately 11.6% to about RMB 640,100,000, with sales volume rising by approximately 3,400 kilometers to about 53,000 kilometers[105] - The revenue from the cable series and related products decreased by approximately 20.0% to about RMB 83.7 million, while the sales volume increased by approximately 50,000 core kilometers to about 1,345,000 core kilometers[86] Taxation and Expenses - The company’s effective tax rate for its subsidiaries in China is 25%, with certain subsidiaries qualifying for a reduced rate of 15%[12] - Tax expenses decreased by approximately RMB 17,300,000 or 65.8% to RMB 9,000,000 in the first half of 2023 from RMB 26,300,000 in the same period of 2022, primarily due to the absence of one-time withholding taxes related to a reorganization in the previous year[141] - Administrative expenses rose by approximately RMB 2,600,000 or 12.9% to RMB 22,400,000 in the first half of 2023 from RMB 19,900,000 in the same period of 2022, mainly due to increased legal and professional service fees[138] Corporate Governance and Compliance - The company has established a governance structure with various committees, including audit, remuneration, and nomination committees, to ensure compliance and oversight[194] - The independent auditor has reviewed the interim financial information for the first half of 2023[164] - The audit committee is responsible for reviewing and monitoring the group's financial reporting procedures and internal controls[174] - The company has adopted the standard code of conduct for securities transactions by directors as per the listing rules[150] Employee and Shareholder Information - The group employed approximately 743 employees as of June 30, 2023, a slight decrease from 748 employees as of December 31, 2022[145] - The remuneration for the company's directors for the six months ended June 30, 2023, was RMB 699,000, slightly up from RMB 695,000 in the same period last year[77] - The total number of share options available for grant under the existing plan as of June 30, 2023, is 37,100,000 shares[151] - The company has a total issued share capital of 1,791,500,000 shares as of June 30, 2023, which is used for calculating approximate percentages[161] Strategic Initiatives - The group aims to enhance its market presence in the millimeter-wave sector by participating in domestic and international exhibitions[59] - The group is exploring investment opportunities in the Internet of Things (IoT) sector, with expectations of significant growth in IoT spending in China, projected to approach $300 billion by 2027[115] - The group is strengthening its collaboration with major telecom operators and exploring various cooperation opportunities, including participation in provincial tenders with China Broadcasting[116] Miscellaneous - The company is listed on the Hong Kong Stock Exchange under stock code 1300, indicating its public trading status[186] - The major banks involved with the company include Industrial and Commercial Bank of China, Agricultural Bank of China, and Bank of China, among others, highlighting its banking relationships[181] - The company’s headquarters is located in Jiangsu Province, Yixing City, China, which is relevant for understanding its operational base[180] - The investor relations email provided is ir@trigiant.com.cn, facilitating communication with stakeholders[186]

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之內 容概不負責，對其準確性或完備性亦不發表任何聲明，並明確表示概不 就因本公佈全部或任何部分內容而產生或因倚賴該等內容而引致之任 何損失承擔任何責任。 TRIGIANT GROUP LIMITED 俊 知 集 團 有 限 公 司 * （於開曼群島註冊成立的有限公司） （股份代號：1300） 截 至2023年6月30日 止 六 個 月 的 中 期 業 績 公 佈 摘 要 截至2023年6月30日止六個月中期業績與2022年上半年中期業績的比較： • 營業額略為增加約人民幣5,800,000元或約0.5%至約人民幣1,250,600,000 元； • 毛利率降約1.7個百分點至約12.6%； ...

5G Technology and Market - As of December 2022, China has built and opened over 2.312 million 5G base stations, accounting for over 60% of the global total[18]. - The number of 5G mobile users in China has exceeded 542 million, with a penetration rate of 32.2%[18]. - The company aims to leverage the growth of the metaverse and IoT technologies to drive rapid growth in consumer 5G applications[18]. - The demand for 5G small base stations continues to increase, with China Mobile initiating large-scale procurement of 5G small base stations in 2022, marking a significant milestone in domestic production[24]. - By 2025, the number of 5G users in China is expected to exceed 900 million, surpassing 4G users, with a personal user penetration rate exceeding 56%[26]. - The company is focusing on small base station transmission solutions, anticipating a significant market demand surge as the global small base station market is expected to enter a large-scale construction phase by 2025[49]. - The global 5G millimeter-wave market is projected to grow by $674 million from 2021 to 2026, with a compound annual growth rate of 31.8%, driven significantly by the North American market[28]. Company Performance and Financials - The total revenue for the company in 2022 was approximately RMB 2.87 billion, with a net profit attributable to shareholders of RMB 207.47 million[32]. - Total revenue for 2022 was RMB 2,630,326 thousand, a decrease of 8.1% from RMB 2,862,456 thousand in 2021[40]. - The revenue from the feeder series increased to RMB 1,242,813 thousand, up 28.3% from RMB 968,171 thousand in 2021[40]. - Gross profit for 2022 was RMB 352,290 thousand, with a gross margin of 13.4%, down from 14.8% in 2021[40]. - The net loss for the year was RMB 56,362 thousand, resulting in a net loss margin of (2.1%), compared to a profit margin of 7.2% in 2021[40]. - Operating cash flow for 2022 was RMB 190,677 thousand, significantly higher than RMB 47,769 thousand in 2021[40]. - The overall gross profit declined by approximately 16.9% to RMB 352.3 million, with a gross profit margin of 13.4%, down 1.4 percentage points year-on-year[55]. - The company recorded a net loss of approximately RMB 56,400,000 for the year, compared to a net profit of approximately RMB 207,500,000 in 2021, resulting in a net loss margin of about 2.1% versus a net profit margin of about 7.2% in 2021[90]. Research and Development - The company is focusing on the research and development of 5G millimeter-wave related products to align with industry demands[18]. - The company is actively developing new products such as residential elevator optical-electrical hybrid cables and 2-core optical fiber cable components for 5G systems, aligning with market trends and customer needs[24]. - The company is advancing its research and development for 6G products, preparing for the upcoming 6G era with an expected initial technical framework in 2023[26]. - The company plans to explore the development of new 5G-related products, including broadband millimeter-wave transceiver modules and residential elevator optical composite cables[69]. - The company is actively monitoring the progress of 6G technology development and is conducting preliminary research on 6G products[70]. Corporate Governance - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors[122]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules[120]. - All independent non-executive directors confirmed their independence and the board believes they possess adequate experience and qualifications[126][129]. - The company has established a corporate governance committee to review and recommend governance policies[120]. - The board is responsible for assessing and mitigating identified risks to achieve strategic objectives[125]. Environmental, Social, and Governance (ESG) - The company is committed to integrating environmental, social, and governance (ESG) considerations into its decision-making processes[175]. - The ESG working group is responsible for collecting and analyzing ESG data, monitoring performance, and ensuring compliance with relevant laws[176]. - The group emphasizes stakeholder engagement as essential for enhancing sustainability performance, maintaining close communication with various stakeholders including shareholders, customers, suppliers, employees, and regulatory bodies[179]. - The group has established an environmental management system certified under GB/T24001–2016/ISO14001:2015 standards, focusing on reducing pollutant emissions through optimized processes[194]. - The group did not identify any significant violations of environmental laws regarding air and greenhouse gas emissions, water and land pollution, or waste generation during the year[194]. Market Expansion and Strategic Initiatives - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share within the next two years[109]. - Strategic acquisitions are being considered to enhance technological capabilities, with a budget allocation of $50 million for potential mergers and acquisitions[109]. - The company plans to enhance its advertising efforts in the microwave industry to improve product visibility and sales performance[71]. - The company will seek new customer opportunities, particularly in collaboration with China Broadcasting Network and expanding its market share in Thailand and South Korea[75]. Employee and Operational Insights - The company employed a total of 748 full-time employees as of December 31, 2022, down from 963 employees in 2021[98]. - The company has not entered into any foreign currency hedging instruments but may consider hedging foreign currency risks as needed[94]. - The company has implemented cost-cutting measures that are projected to save approximately $10 million annually[109]. - Customer satisfaction ratings have improved, with a reported increase of 12% in positive feedback from users[109].