Company Overview - Trigiant Group Limited is a major manufacturer in China for feeder series, optical cable series, and related products, with a focus on telecommunications transmission[12]. - The company expanded its business by acquiring 65% of Jiangsu Trigiant Optical Communication Co., Ltd. in 2014 and later acquired the remaining interest in 2017[12]. - In 2018, Trigiant Group acquired 87.5% of Jiangsu Trigiant Sensing Technology Co., Ltd., making it a wholly-owned subsidiary[12]. - Major customers include China Mobile, China Unicom, China Telecom, and China Tower, indicating a strong client base in the telecommunications sector[13]. - The company has a diverse product portfolio, including feeder cables, leakage cables, optical cables, flame-retardant soft cables, and various electronic components[12][21]. Financial Performance - The total revenue for 2019 was RMB 3,542,107 thousand, an increase from RMB 3,469,247 thousand in 2018, representing a growth of approximately 2.1%[48]. - The net profit attributable to the company's owners for 2019 was RMB 358,969 thousand, compared to RMB 345,460 thousand in 2018, reflecting a growth of about 3.4%[48]. - The gross profit margin for 2019 was 19.1%, slightly down from 19.4% in 2018[48]. - The operating cash flow for 2019 was RMB 297,947 thousand, a substantial increase from RMB 42,185 thousand in 2018[50]. - The group recorded other losses of approximately RMB 1,900,000 in 2019, a decrease from RMB 4,600,000 in 2018, primarily due to foreign exchange losses[95]. Market Expansion and Strategy - Trigiant Group's financial performance and market expansion strategies are focused on leveraging its established reputation and customer relationships in the telecommunications industry[12]. - The company plans to expand its market share in telecommunications and equipment sectors while actively pursuing new customers in broadcasting, rail transit, security, and microwave communication fields[35]. - The company aims to enhance its presence in overseas markets, particularly in Korea, Southeast Asia, Europe, and the Middle East, leveraging existing product and technology advantages[35]. - The company is focusing on expanding its product specifications to higher frequency communication technologies to capture market opportunities[33]. - The company expects sustained demand for its main products due to the ongoing expansion and upgrading of 4G networks[33]. Research and Development - The company is committed to research and development in new technologies to maintain its competitive edge in the market[12]. - The company has begun research and development in millimeter-wave technology to enhance high-speed data transmission capabilities, which will be applied in 5G core systems[33]. - The company is focusing on the development of new products and technologies, including upstream devices and related applications in the 5G market[56]. - The company has achieved significant technological breakthroughs in RF connectors, power dividers, and couplers for 5G mid-high frequency base stations, positioning itself to benefit from the large-scale commercial deployment of 5G[78]. - The group has obtained 165 patents and developed 129 new products as of December 31, 2019[73]. Customer and Product Demand - The company won the Huawei 5G optical-electrical hybrid cable project, leading to significant sales growth in its main products[29]. - The company anticipates that 5G base station construction will reach 800,000 stations in 2020, benefiting the entire telecommunications industry chain[31]. - The company expects 5G infrastructure construction to drive significant sales growth in related products, including flame-retardant soft cables and RF components, due to the anticipated demand from telecom operators[78]. - The company reported a significant increase in the revenue from flame-retardant soft cable series, which reached RMB 817,774 thousand in 2019, up from RMB 576,326 thousand in 2018, marking a growth of approximately 42%[48]. - The sales revenue of new electronic components rose by approximately RMB 77,600,000, or 67.9%, totaling approximately RMB 191,888,000[66]. Corporate Governance - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors[142]. - The company has adopted the corporate governance code as its own governance code, ensuring compliance with the relevant rules[140]. - The company has established a corporate governance committee to review and recommend governance policies[140]. - The board is responsible for assessing risks and ensuring effective risk management and internal control systems[145]. - The company has received annual confirmations regarding the independence of all independent non-executive directors[146]. Environmental, Social, and Governance (ESG) Initiatives - The report covers the company's environmental, social, and governance (ESG) policies and performance for the year 2019, from January 1 to December 31[190]. - The company is committed to sustainable development and responsible management of ESG matters[181]. - The board is responsible for setting the strategic direction for ESG and ensuring effective risk control mechanisms[184]. - The company has implemented policies for effective resource usage, including energy, water, and raw materials[200]. - Stakeholder engagement is crucial for the company, with various communication channels established to understand and address stakeholder expectations[187].

Financial Performance - Revenue increased by approximately RMB 422.1 million or about 25.1% to approximately RMB 2,104.2 million[12] - Gross profit margin slightly decreased by approximately 0.2 percentage points to about 19.3%[12] - Profit for the period increased by approximately RMB 67.3 million or about 40.5% to approximately RMB 233.5 million[12] - Net profit margin increased by approximately 1.2 percentage points to about 11.1%[12] - Earnings per share rose from RMB 0.0928 to RMB 0.1304[12] - The group reported total revenue of RMB 2,104,225,000 for the six months ended June 30, 2019, an increase from RMB 1,682,134,000 for the same period in 2018, representing a growth of approximately 25.0%[72] - The gross profit for the group was RMB 406,921,000, with a gross margin of approximately 19.3%[72] - The net profit for the period was RMB 233,532,000, reflecting a significant increase compared to the previous year's profit[72] - The overall gross profit increased by approximately 24.3%, from RMB 327.3 million in the first half of 2018 to RMB 406.9 million in the first half of 2019[133] - The company's profit before tax for the six months ended June 30, 2019, was RMB 196,744,000, compared to RMB 166,238,000 for the same period in 2018, representing an increase of approximately 18.3%[76] Cash Flow and Assets - The company reported a net cash inflow from operating activities of RMB 155,677 thousand, a significant improvement compared to a net outflow of RMB 38,062 thousand in the same period of 2018[30] - The company incurred a total cash outflow from investing activities of RMB 7,774 thousand, a decrease from RMB 74,461 thousand in the previous year, reflecting improved cash management[30] - The company’s cash and cash equivalents decreased by RMB 273,375 thousand, ending at RMB 217,758 thousand as of June 30, 2019, compared to RMB 442,085 thousand at the end of the previous period[30] - As of June 30, 2019, total assets amounted to RMB 6,146,085 thousand, a slight decrease from RMB 6,022,596 thousand as of December 31, 2018[24] - The company’s total liabilities decreased to RMB 2,738,133 thousand from RMB 2,812,820 thousand, showing a reduction of approximately 2.65%[24] - The capital-to-debt ratio decreased from approximately 29.2% as of December 31, 2018, to about 28.3% as of June 30, 2019, primarily due to the repayment of bank borrowings[167] Research and Development - The board is optimistic about the development of 5G and plans to increase R&D for related products[12] - Research and development costs increased from RMB 26.6 million to RMB 30.5 million[19] - Research and development costs for the period were RMB 30,509,000, indicating the group's commitment to innovation[75] - The company completed the acquisition of a sensor company in 2018, further expanding its product chain and positioning itself advantageously in the industry[145] Dividends and Shareholder Returns - No interim dividend was recommended for the six months ended June 30, 2019, compared to HKD 0.022 per share for the same period in 2018[12] - The company declared dividends amounting to RMB 36,178 thousand during the period, compared to RMB 31,583 thousand in the same period of 2018, reflecting a commitment to returning value to shareholders[25] - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2019, compared to an interim dividend of HKD 0.022 per share for the six months ended June 30, 2018[174] Market Position and Future Outlook - The board is optimistic about the development of 5G and plans to increase R&D in related products to enhance competitiveness and market share[174] - The market saw the official issuance of 5G commercial licenses on June 6, 2019, marking the beginning of the 5G era in China, which is expected to accelerate the construction of 5G infrastructure[130] - The company is positioned as a key supplier for 5G base station construction, benefiting from increased sales of optical hybrid cables and other products due to higher power consumption of 5G base stations[130] - The group expects strong demand for 4G and 5G infrastructure, with plans for 50,000 5G base stations by China Mobile and 40,000 by both China Telecom and China Unicom in 2019[143] - The company is actively exploring overseas markets, particularly in emerging economies, to meet the demand for mobile communication infrastructure driven by 5G[148] Financial Reporting and Compliance - The financial statements for the six months ended June 30, 2019, were prepared in accordance with Hong Kong Accounting Standards (HKAS) 34 and relevant disclosure requirements[40] - The group applied new and revised Hong Kong Financial Reporting Standards (HKFRS) effective from January 1, 2019, which did not have a significant impact on the financial performance and position for the current and prior periods[42] - The group adopted HKFRS 16 "Leases," which replaced HKAS 17, resulting in significant changes in accounting policies related to leases[44] - The independent auditor Deloitte has conducted a review of the group's interim financial information according to the relevant standards[196] Employee and Management Information - The group employed approximately 921 employees as of June 30, 2019, a decrease from 961 employees as of December 31, 2018[171] - The company’s management fees paid to directors amounted to approximately RMB 1,141,000 for the six months ended June 30, 2019, down from RMB 1,210,000 for the same period in 2018[127] - The company’s executive director Qian Lirong's annual salary is adjusted to HKD 600,000 and RMB 480,000, payable monthly from July 1, 2019[193] Share Capital and Ownership - As of June 30, 2019, Mr. Qian Li Rong held a total of 516,531,750 shares, representing approximately 28.83% of the company's equity[182] - The group’s issued and paid-up share capital remained at RMB 17,915,000 as of June 30, 2019, consistent with previous periods[115] - The total shares held by Shenzhen Yiatong Investment Holdings Limited and its controlled entities amount to 292,876,000 shares, which is 16.35%[187]

Company Overview - Trigiant Group Limited is a major manufacturer in China for feeder series, optical cable series, and related products, with a focus on research, development, and sales[7]. - In 2018, the company acquired an 87.5% stake in Jiangsu Trigiant Sensing Technology Co., Ltd., making it a wholly-owned subsidiary[7]. - The company’s registered trademark "Trigiant Technology" is recognized as a "famous trademark" in China by the State Administration for Industry and Commerce[7]. - Major customers include China Mobile, China Unicom, China Telecom, and leading telecom equipment manufacturers like Huawei and ZTE[8]. - The company expanded its product line in 2010 with the introduction of flame-retardant soft cables, which have been well received by customers[7]. - Trigiant Group increased its stake in Jiangsu Trigiant Optoelectronic Communication Co., Ltd. to 100% in 2017, enhancing its optical cable business[7]. - The company focuses on expanding its market and customer base within the telecommunications industry[7]. Financial Performance - In 2018, the company achieved a revenue of approximately RMB 3.49 billion, with a net profit of RMB 345.48 million[24]. - Total revenue for the year ended December 31, 2018, increased by approximately 8.4% to RMB 3,469,247,000 from RMB 3,200,807,000 in 2017[40]. - Gross profit rose by about 7.1% to RMB 672,381,000, with a gross margin of 19.4%, slightly down from 19.6% in 2017[40]. - Net profit attributable to shareholders increased by approximately 24.7% to RMB 345,460,000, compared to RMB 277,143,000 in 2017[40]. - Basic earnings per share rose to RMB 19.28, an increase of RMB 2.90 from RMB 16.38 in 2017[40]. - The revenue from the feeder series accounted for about 49.7% of total revenue, increasing by 6.3% year-on-year to approximately RMB 1,725.58 million[42]. - The revenue from the optical cable series, which accounted for about 30.0% of total revenue, rose by 6.8% year-on-year to approximately RMB 1,041.09 million[44]. - The revenue from the flame-retardant soft cable series increased by 12.1% year-on-year to approximately RMB 576.33 million[45]. Market Trends and Opportunities - The company anticipates significant opportunities from the transition from 4G to 5G, with major telecom operators expected to invest heavily in 5G infrastructure[19]. - The government’s policies and the telecom operators' proactive strategies are expected to create a favorable environment for the company’s fiber optic product series[19]. - The sensor market in China is projected to grow to RMB 593.7 billion by 2021, with an annual compound growth rate of 30% from 2017 to 2021, indicating strong potential for the newly acquired sensor business[20]. - The company plans to enter the Turkish and Malaysian markets in 2019 and will participate in international product exhibitions in several countries, including the UAE, India, and Spain[20]. Research and Development - The company has obtained 153 patents and developed 133 new products, with 81 products certified as high-tech products by Jiangsu Province[48]. - Research and development costs increased by approximately RMB 2.5 million or about 4.5% to approximately RMB 58.3 million in 2018, driven by the development of new telecom products[68]. - The company plans to accelerate the development of 5G transmission solutions, anticipating commercial deployment in major cities by Q3 2019 and full implementation by 2020[49]. Corporate Governance - The board consists of two executive directors, one non-executive director, and three independent non-executive directors[105]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules[103]. - All independent non-executive directors confirmed their independence and compliance with the relevant regulations[109]. - The company has established a corporate governance committee to review and recommend governance policies[103]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) working group is responsible for collecting relevant data and reporting to the board on ESG risks and internal control effectiveness[140]. - The company has established an environmental management system certified to GB/T24001-2016/ISO14001:2015 standards, ensuring compliance with local environmental laws[161]. - The company has received honors such as "Green Enterprise" and "Ecological Civilization Demonstration Unit" in recognition of its environmental protection efforts[162]. - The company emphasizes employee rights and welfare, adhering to labor laws and providing a healthy work environment to enhance employee motivation and creativity[200]. Employee and Operational Insights - As of December 31, 2018, the group employed a total of 961 full-time employees, an increase from 904 in 2017[80]. - The company emphasizes product quality and implements strict inspections and improvements throughout all production processes to meet industry and national standards[139]. - The management team emphasized the importance of enhancing operational efficiency, aiming for a 5% reduction in operational costs by optimizing supply chain processes[89]. Future Outlook - The company provided a positive outlook for 2019, projecting a revenue growth of 10% to 15% based on current market trends and user acquisition strategies[89]. - Strategic acquisitions are on the agenda, with a budget of 10 million set aside for potential mergers and acquisitions to enhance product offerings[89]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[89].