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，對其準確性或完備性亦無發表任何聲明，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依賴該等內容引致的任何 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2022年12月31日 止 年 度 的 全 年 業 績 公 佈 摘 要 2022年國內新冠疫情反覆，本集團業績表現不可避免受到影響。另外， 2022年 度 預 期 信 貸 虧 損 模 式 下 之 減 值 虧 損 上 升 因2022年12月 中 國 疫 情 頂 峰 影 響 貿 易 應 收 帳 款 回 收 進 度。綜 合 以 上 因 素，本 集 團 於 本 年 度 轉 盈為虧。 儘 管 在 這 新 冠 疫 情 年 出 現 的 各 種 困 難，本 集 團 於2022年 度 仍 保 持 穩 健 的 經 營，其 中 預 期 信 貸 虧 損 模 式 下 之 減 值 虧 損╱減 值 撥 回 淨 額 前 的 營 業利潤金額數目約為人民幣241,300,000元（2021年：人民 ...

Financial Performance - Revenue decreased by approximately RMB 79.6 million or about 6.0% to approximately RMB 1,244.8 million for the six months ended June 30, 2022[13]. - Gross profit margin declined by approximately 1.3 percentage points to about 14.3%[13]. - Profit for the period decreased by approximately RMB 3.2 million or about 6.1% to approximately RMB 49.7 million[13]. - Earnings per share decreased from RMB 2.95 to RMB 2.77[13]. - The board did not recommend the declaration of an interim dividend for the six months ended June 30, 2022[13]. - The company's revenue for the period was RMB 1,244,756 thousand, with a cost of goods sold of RMB 1,066,302 thousand, resulting in a gross profit of RMB 178,454 thousand[20]. - The pre-tax profit was RMB 75,999 thousand, and the total comprehensive income for the period was RMB 49,677 thousand[20]. - Basic and diluted earnings per share were both RMB 2.77[20]. - The company reported a net profit of RMB 49,677 thousand for the six months ended June 30, 2022, compared to RMB 52,899 thousand for the same period in 2021, indicating a decrease of approximately 6.0%[36][38]. - Gross profit decreased by approximately RMB 28.3 million or 13.7% to about RMB 178.5 million, with the overall gross margin dropping from 15.6% in the first half of 2021 to 14.3% in the first half of 2022, mainly due to intense price competition in the cable series products[130]. Revenue Breakdown - The external sales breakdown includes: RMB 573,598 thousand from the feeder cable series, RMB 481,322 thousand from the flame-retardant soft cable series, RMB 104,575 thousand from the optical cable series, and RMB 83,796 thousand from new electronic components[36]. - The revenue from the cable series increased by approximately 29.7% to about RMB 573.6 million, accounting for approximately 46.1% of total revenue[111]. - The revenue from the flame-retardant soft cable series decreased by approximately 18.9% to about RMB 481.3 million, with a gross margin decline of 1.2 percentage points to about 12.8%[112]. - The revenue from the optical cable series and related products decreased by approximately 54.2% to about RMB 104.6 million, with sales volume dropping by approximately 3.5 million core kilometers[113]. Cash Flow and Assets - The company’s cash and cash equivalents at the end of the period were RMB 479,455 thousand, up from RMB 459,272 thousand at the beginning of the period[27]. - The net cash generated from operating activities was RMB 14,154 thousand, a significant improvement compared to a net cash outflow of RMB 155,598 thousand in the previous year[27]. - The company reported a net cash outflow from investing activities of RMB 31,079 thousand, compared to RMB 8,591 thousand in the previous year[27]. - Non-current assets totaled RMB 503,949 thousand, while current assets amounted to RMB 5,180,138 thousand, showing a slight increase from the previous period[21]. Liabilities and Equity - The total liabilities increased to RMB 2,007,245 thousand, with trade and other payables significantly reduced to RMB 134,847 thousand from RMB 676,471 thousand[21]. - The total equity as of June 30, 2022, was RMB 3,650,632 thousand, reflecting a slight increase from RMB 3,600,955 thousand at the end of the previous year[21]. - As of June 30, 2022, total borrowings amounted to approximately RMB 1,826.1 million, an increase of about RMB 561.1 million compared to December 31, 2021[145]. - The capital debt ratio increased from approximately 16.5% on December 31, 2021, to about 30.2% on June 30, 2022, primarily due to financing classified as borrowing[147]. Research and Development - Research and development costs decreased by approximately RMB 7.9 million or 25.6% to RMB 22.9 million, primarily due to a reduction in the research budget for cable series and related products[136]. - The company is investing more resources into the research and development of millimeter-wave products to meet the performance demands of emerging fields such as AR and VR[121]. - The company has established a technology innovation alliance with the Chinese Academy of Forestry Sciences to promote IoT and AI applications in forestry and grassland sectors[122]. Market and Business Strategy - The company plans to continue expanding its business in the millimeter-wave market and enhance its presence in both domestic and international markets[105]. - The company aims to expand its overseas market presence, focusing on stable markets in Thailand and South Korea, and will participate in several online trade fairs to promote its products[126]. - The company plans to actively develop new customers and strengthen partnerships with well-known domestic enterprises and overseas companies to accelerate 5G infrastructure development[125]. - The global small base station market is expected to reach USD 25 billion in the next five years, indicating significant growth potential[2]. - The global IoT market is expected to exceed $1.1 trillion by 2026, with China's IoT market projected to reach $294 billion, becoming the largest in the world[122]. Corporate Governance - The company has complied with the corporate governance code as per the listing rules during the six months ended June 30, 2022[153]. - The company has established an audit committee responsible for reviewing and monitoring financial reporting procedures and risk management systems[175]. - The independent auditor has reviewed the interim financial information for the first half of 2022 according to the Hong Kong Institute of Certified Public Accountants' standards[175].

Company Overview - Trigiant Group Limited is a major manufacturer in China for feeder series, optical cable series, and related products, focusing on research, development, and sales[9]. - The company expanded its telecommunications business by acquiring 65% of Jiangsu Trigiant Optical Communication Co., Ltd. in 2014 and later acquired the remaining interest in 2017[9]. - In 2018, Trigiant Group acquired 87.5% of Jiangsu Trigiant Sensing Technology Co., Ltd., making it a wholly-owned subsidiary[9]. - Major customers include China Mobile, China Unicom, China Telecom, and China Tower, as well as major telecom equipment manufacturers like ZTE and Huawei[10]. - The company introduced a new product line of flame-retardant soft cables in 2010, which has been well received by customers[9]. - Trigiant's registered trademark "Trigiant Technology" is recognized as a "famous trademark" in China by the State Administration for Industry and Commerce[9]. - The company has a strong focus on market expansion within the telecommunications industry, leveraging its established product lines[9]. Financial Performance - Trigiant Group's financial summary and performance metrics are detailed in the annual report, highlighting growth and strategic initiatives[3]. - Total revenue for 2021 was RMB 2,862,456 thousand, a slight decrease from RMB 2,873,078 thousand in 2020[43]. - The profit attributable to owners for 2021 was RMB 207,467 thousand, compared to a loss of RMB (139,364) thousand in 2020[43]. - Gross profit margin decreased to 14.8% in 2021 from 17.8% in 2020[43]. - The company reported a net cash inflow from operating activities of RMB 47,769 thousand in 2021, down from RMB 82,514 thousand in 2020[43]. - The inventory turnover days increased to 30 days in 2021 from 22 days in 2020[43]. - The group recorded a profit of approximately RMB 207.5 million for the year 2021, compared to a loss of RMB 139.4 million in 2020, marking a significant turnaround[55]. - Total revenue slightly decreased by approximately RMB 10.6 million to RMB 2,862.5 million, with the revenue from the flame-retardant soft cable series increasing by approximately RMB 262.1 million, offsetting declines in other product lines[59]. - The flame-retardant soft cable series accounted for about 42.3% of total revenue, with a year-on-year increase of 27.6% to approximately RMB 1,210.2 million[60]. - The revenue from the feeder series decreased by approximately 19.3% to about RMB 968.2 million, primarily due to delays in 5G equipment tenders[61]. - The average price of copper, a key raw material, surged by approximately 40.6% during the year, impacting overall gross profit which fell by about 17.1% to RMB 423.9 million[59]. - The overall gross margin for 2021 was approximately 14.8%, a decrease of 3.0 percentage points compared to 2020[59]. Product Development and Market Trends - The company is committed to continuous research and development of new technologies and products to enhance its market position[9]. - The company has successfully developed and launched multiple new products for 5G communication, including ultra-low loss feeder cables and optical-electrical hybrid cables for indoor 5G signal coverage[22]. - The demand for optical-electrical hybrid cables is expected to increase significantly as the construction of 5G and gigabit optical networks accelerates[29]. - The IoT market in China reached approximately CNY 2.14 trillion in 2020, with an expected growth rate of over 18% annually for the next three years[27]. - By the end of 2025, the number of 5G users in China is projected to exceed 830 million, making it the largest globally, with total 5G connections surpassing 800 million[28]. - The company aims to deepen cooperation with the three major telecom operators and actively participate in tenders from China Broadcasting, China Tower, and major equipment manufacturers to capture a significant share of the 5G construction boom[28]. - The company plans to establish its own technical sales system for millimeter-wave products and continue to enhance its technical capabilities in this area[31]. - The company aims to leverage the growing demand for small base stations, with a projected global market size of USD 25 billion over the next five years[51]. Governance and Corporate Structure - The board of directors consists of two executive directors, one non-executive director, and three independent non-executive directors[129]. - The company has adopted the corporate governance code as its own governance code, ensuring compliance with the relevant rules[127]. - All independent non-executive directors confirmed their independence and have relevant experience in audit, accounting, and financial management[133]. - The company has established a corporate governance committee to review and recommend governance policies[127]. - The company aims to maximize shareholder interests through transparent governance practices[127]. - The roles of the Chairman and CEO are not separated, with Mr. Qian Lirong holding both positions since December 31, 2019, ensuring consistent leadership and effective strategic planning[139]. - The Audit Committee held four meetings during the year ended December 31, 2021, primarily reviewing the group's risk management and financial reporting processes[144]. - The company has a Nomination Policy in place since January 1, 2020, to enhance transparency and accountability in the director nomination process[150]. Environmental, Social, and Governance (ESG) Initiatives - The governance structure includes a board of directors responsible for overseeing environmental, social, and governance (ESG) matters, ensuring alignment with strategic growth[171]. - The ESG working group collects and analyzes data to monitor and evaluate the company's ESG performance, ensuring compliance with relevant laws and regulations[172]. - Key ESG issues identified include greenhouse gas emissions, waste management, water consumption, and energy consumption, which are prioritized based on stakeholder feedback[181]. - The company is committed to corporate social responsibility, integrating ESG considerations into decision-making processes to create value for shareholders[171]. - Total nitrogen oxides (NOX) emissions decreased from 17.05 kg in 2020 to 15.51 kg in 2021, representing a reduction of approximately 9.05%[195]. - Total greenhouse gas emissions increased from 7,418.36 tons CO2 equivalent in 2020 to 10,470.76 tons CO2 equivalent in 2021, marking an increase of about 41.5%[200]. - The company has established an environmental management system certified under GB/T24001–2016/ISO14001:2015 standards[189]. - The company received honors such as "Green Enterprise of Yixing City" and "Ecological Civilization Demonstration Unit of Yixing City" for its environmental protection efforts[190].

Financial Performance - Revenue increased by approximately RMB 165.9 million or about 14.3% to approximately RMB 1,324.4 million for the six months ended June 30, 2021[13] - The company recorded a profit of approximately RMB 52.9 million for the period, compared to a loss of approximately RMB 125.6 million in the same period of 2020[13] - Net profit margin was approximately 4.0%, while the net loss margin for the same period in 2020 was approximately 10.8%[13] - Earnings per share were RMB 2.95, compared to a loss per share of RMB 7.01 in the first half of 2020[13] - Revenue for the period was RMB 1,324,369 thousand, compared to RMB 1,158,509 thousand in the previous year, representing an increase of approximately 14.3%[24] - The company reported a pre-tax profit of RMB 63,366 thousand, a significant recovery from a pre-tax loss of RMB 129,870 thousand in the previous year[24] - Net profit for the period was RMB 52,899 thousand, compared to a net loss of RMB 125,624 thousand in the previous year, marking a turnaround[24] - Basic and diluted earnings per share were both RMB 2.95, recovering from a loss of RMB 7.01 per share in the previous year[24] Gross Profit and Margins - Gross profit margin decreased by approximately 2.3 percentage points to about 15.6%[13] - Gross profit for the period was RMB 206,724 thousand, slightly down from RMB 207,837 thousand, indicating a marginal decrease of 0.5%[24] - The gross profit for the group was RMB 206,724 thousand, with a gross margin of approximately 15.6%[47] - Gross profit decreased by approximately RMB 1,100,000 or 0.5% to RMB 206,700,000, with a gross margin decline from 17.9% in 2020 to 15.6% in 2021[153] Cash Flow and Financial Position - Cash and cash equivalents at the end of the period were RMB 510,270 thousand, down from RMB 686,988 thousand at the beginning of the period[37] - The company incurred a net cash outflow from operating activities of RMB 155,598 thousand, an improvement from RMB 183,011 thousand in the previous year[37] - Total assets less current liabilities amounted to RMB 3,469,931 thousand, compared to RMB 3,416,397 thousand in the previous year, reflecting a growth of approximately 1.6%[27] - The company raised new bank borrowings of RMB 700,000 thousand during the period, while repaying RMB 680,000 thousand[37] Trade Receivables and Impairment - Trade receivables impairment losses significantly decreased compared to the same period in 2020, with no goodwill impairment losses recorded[12] - Expected credit loss under the impairment model showed a significant reduction in trade receivables impairment loss to RMB (33,648,000) in the first half of 2021 from RMB (136,419,000) in 2020, a decrease of approximately 75.7%[62] - The trade receivables balance as of June 30, 2021, was RMB 2,213,103,000, down from RMB 2,470,694,000 at the end of 2020, indicating a decrease of 10.4%[83] - The overdue trade receivables exceeding 90 days amounted to RMB 1,927,905,000, compared to RMB 1,847,247,000 at the end of 2020, representing an increase of 4.4%[83] Research and Development - Research and development expenses amounted to RMB 30,744 thousand, reflecting the company's commitment to innovation and product development[47] - R&D expenses increased by approximately RMB 2,000,000 or 6.9% to RMB 30,700,000, mainly due to rising research material costs[162] - The company is actively developing millimeter-wave products, with a market potential estimated at approximately USD 104 billion by 2034 in China, enhancing its product portfolio and gross margin[126] - The company has secured 173 patents and developed 66 new products as of June 30, 2021[138] Market and Product Development - The company is focused on market expansion and new product development as part of its growth strategy[13] - The company is exploring external processing capabilities for mass production of millimeter-wave products, aiming to enhance its competitive advantage in the market[126] - The telecommunications industry is expected to experience an upward trend due to recovering global economic conditions and increasing domestic market demand[141] - The company is focusing on 5G infrastructure opportunities, anticipating significant growth in the 5G base station market[141] Shareholder Information - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2021, compared to zero in the same period of 2020[13] - The company’s issued and fully paid shares remained at 1,791,500,000 as of June 30, 2021, unchanged from previous periods[96] - The largest shareholder, Trigiant Investments, holds 523,521,750 shares, representing 29.22% of the total[192] - Easy Beauty Limited and Artemis Delight Limited each hold 428,000,000 shares, representing 23.89% of the total[192] Corporate Governance - The company has complied with the corporate governance code, except for the separation of the roles of chairman and CEO, which are currently held by the same individual[179] - The company has not engaged in any significant transactions with related parties during the reporting period[119] - The company has adopted a share option scheme to incentivize and reward eligible participants for their contributions to the group[183]

Financial Performance - Total revenue for 2020 was RMB 2,873,078 thousand, a decrease of 18.8% from RMB 3,542,107 thousand in 2019[37]. - The company reported a net loss of RMB (139,364) thousand for 2020, compared to a profit of RMB 358,969 thousand in 2019[43]. - Basic and diluted loss per share for 2020 was RMB (7.78) cents, compared to earnings of RMB 20.04 cents per share in 2019[45][46]. - The revenue from the feeder cable series was RMB 1,199,217 thousand, down from RMB 1,517,933 thousand in 2019, representing a decline of 21%[38]. - The revenue from the optical cable series and related products was RMB 588,867 thousand, a decrease of 42% from RMB 1,014,392 thousand in 2019[39]. - The revenue from the flame-retardant soft cable series increased to RMB 948,050 thousand, up 16% from RMB 817,774 thousand in 2019[40]. - Gross profit for 2020 was RMB 511,372 thousand, down from RMB 675,696 thousand in 2019, resulting in a gross margin of 17.8% compared to 19.1% in 2019[41][42]. - The operating cash flow for 2020 was RMB 82,514 thousand, down from RMB 297,947 thousand in 2019, indicating a significant decrease in cash generation[53]. - The company recorded a net loss of approximately RMB 139.4 million in 2020, compared to a profit of RMB 359 million in 2019, resulting in a loss per share of RMB 7.78[57]. - The gross profit for 2020 was RMB 511.4 million, a decrease of 24.3% from RMB 675.7 million in 2019, with a gross margin of 17.8%[57]. - The total revenue decreased by approximately RMB 669 million or 18.9% from about RMB 3,542 million in 2019 to about RMB 2,873 million in 2020[77]. - Sales to the three major telecom operators in China decreased by approximately RMB 610.5 million to about RMB 2,613.2 million in 2020[77]. 5G Development and Market Position - As of December 2020, China had built over 700,000 5G base stations, achieving continuous coverage in key areas and exceeding annual targets[20]. - The number of 5G package users reached approximately 200 million, with a rapid increase in penetration rate[20]. - The company is actively developing small base station transmission solutions to capitalize on the growth opportunities in the 5G industry[20]. - The company is optimistic about the demand for optical hybrid cables due to the acceleration of 5G infrastructure construction, which is expected to boost sales volume and revenue[23]. - The small base station market is projected to reach USD 25 billion by 2024, with the company actively positioning itself to benefit from this growth[55]. - The total investment in 5G network construction by the three major telecom operators in China reached RMB 180 billion in 2020, with a projected cumulative investment of RMB 1.2 trillion by 2025[70]. Research and Development - The company has developed 206 new products and holds 155 patents as of December 31, 2020, indicating a strong focus on R&D[69]. - The company is actively developing millimeter-wave technology, which is a key focus for future 5G applications, and has established a dedicated team for this purpose[71]. - The company plans to continue its R&D efforts for 6G applications while enhancing its competitive advantage in the telecommunications industry[72]. - Research and development costs decreased by approximately RMB 1.5 million or 2.4% to about RMB 60.4 million in 2020 due to pandemic-related delays[86]. Customer Base and Sales - The company’s main customers include major telecom operators such as China Mobile, China Unicom, and China Telecom[8]. - As of December 31, 2020, the revenue contributions from China Mobile, China Unicom, and China Telecom were approximately 41.4%, 28.6%, and 21.0% of total revenue, respectively[65]. - The average selling price of the company's products remained stable, with a slight increase in raw material prices impacting the cost structure[60]. Corporate Governance - The company has established a governance committee to enhance corporate governance practices and ensure compliance with regulatory standards[110]. - All board members confirmed adherence to the trading standards set forth in the company's securities trading code during the reporting period[110]. - The board of directors held four meetings during the year ended December 31, 2020[122]. - The audit committee conducted four meetings to review the group's risk management and financial reporting processes[132]. - The remuneration committee held two meetings to review the compensation agreements and policies for directors and senior management[135]. - The company purchased liability insurance for directors and senior management during the year ended December 31, 2020[126]. - The company has appointed at least three independent non-executive directors to comply with listing rules[124]. - The chairman and CEO roles are held by the same individual, Mr. Qian Lirong, since December 31, 2019[129]. - The independent non-executive directors confirmed their independence annually to the board[124]. Environmental, Social, and Governance (ESG) Initiatives - The company has established an environmental, social, and governance (ESG) working group to collect relevant data and report on ESG performance[166]. - The total emissions of nitrogen oxides (NOX) decreased from 24.06 kg in 2019 to 17.05 kg in 2020, representing a reduction of approximately 29.1%[182]. - Sulfur oxides (SOX) emissions fell from 0.58 kg in 2019 to 0.44 kg in 2020, a decrease of about 24.1%[182]. - Particulate matter (PM) emissions reduced from 1.77 kg in 2019 to 1.26 kg in 2020, showing a decline of approximately 28.7%[182]. - The company has implemented various measures to reduce vehicle emissions, including shutting down engines during idling and using unleaded and low-sulfur fuels[181]. - The company has established an environmental management system certified under GB/T24001-2016/ISO14001:2015 standards[178]. - The company received honors such as "Green Enterprise of Yixing City" and "Ecological Civilization Demonstration Unit of Yixing City," reflecting its commitment to environmental protection[180]. - The report adheres to the guidelines set forth by the Hong Kong Stock Exchange for environmental, social, and governance reporting[172]. Operational Efficiency and Cash Flow - The net cash generated from operating activities decreased to RMB 82,514,000 in 2020 from RMB 297,947,000 in 2019, representing a decline of approximately 72.3%[92]. - The net cash generated from investing activities increased significantly to RMB 183,542,000 in 2020 from RMB 96,704,000 in 2019, marking an increase of about 89.8%[92]. - The net cash used in financing activities improved to RMB 60,813,000 in 2020 from a net cash outflow of RMB 525,665,000 in 2019[92]. - The average turnover days for trade receivables are approximately one year, reflecting the company's strategy of providing extended credit terms to major clients[66]. - The capital debt ratio improved from 20.5% in 2019 to 18.9% in 2020, reflecting a stronger equity position[53]. Employee and Market Expansion - The number of full-time employees increased to 997 as of December 31, 2020, compared to 919 in 2019[98]. - The company is focusing on expanding its market presence in Southeast Asia, the Middle East, and the Americas despite the ongoing global pandemic[75]. - The company aims to develop new customers in sectors such as public security and microwave communication, leveraging its advanced technology and service quality[74].

Financial Performance - Revenue for the first half of 2020 decreased by approximately RMB 945.7 million or about 44.9% to approximately RMB 1,158.5 million compared to the same period in 2019[30]. - The company recorded a loss of approximately RMB 125.6 million for the period, compared to a profit of approximately RMB 233.5 million in the first half of 2019[30]. - Earnings per share for the period was a loss of RMB 7.01, compared to earnings of RMB 13.04 per share in the first half of 2019[30]. - The company reported a loss before tax of RMB 129,870 thousand, compared to a profit of RMB 274,179 thousand in the previous year, reflecting a significant shift in performance[41]. - The net loss attributable to shareholders was RMB 125,624 thousand, compared to a profit of RMB 233,532 thousand in the same period last year[41]. - Gross profit for the same period was RMB 207,837 thousand, down from RMB 406,921 thousand, indicating a decrease of about 49%[41]. - The company experienced a decline in orders due to the impact of the COVID-19 pandemic but has since resumed production capacity to pre-pandemic levels in the second quarter[29]. - The company’s revenue for the six months ended June 30, 2020, was RMB 1,158,509 thousand, a decrease from RMB 2,104,225 thousand in the same period of 2019, representing a decline of approximately 45%[41]. - Gross profit fell by about 48.9% from RMB 406,900,000 in the first half of 2019 to RMB 207,800,000 in the first half of 2020, resulting in a gross margin decline of approximately 1.4 percentage points to about 17.9%[171]. Cash Flow and Financing - The company’s cash and cash equivalents at the end of the period were RMB 538,465 thousand, up from RMB 360,119 thousand, indicating an increase of about 49%[60]. - The company raised new bank borrowings of RMB 919,000 thousand during the period, compared to RMB 572,000 thousand in the previous year[60]. - The company experienced a net cash inflow from financing activities of RMB 203,724 thousand, contrasting with a net outflow of RMB 421,278 thousand in the same period last year[60]. Impairments and Losses - The group experienced a significant increase in expected credit loss impairment, amounting to RMB 136,419,000, compared to the previous year[76]. - The company recognized an expected credit loss of RMB (136,419,000) for the six months ended June 30, 2020, compared to RMB (24,888,000) in the same period of 2019, indicating a deterioration in receivables[88]. - The company recognized an impairment loss of RMB 136,419,000 for the six months ended June 30, 2020, compared to RMB 24,888,000 for the same period in 2019[116]. - The company has recognized an impairment loss of approximately RMB 94,300,000 related to goodwill from an acquisition made in 2018, reflecting the adverse impact of the pandemic on global economic growth forecasts[171]. Operational Developments - The company is actively developing optical-electrical hybrid cables for micro base stations, having secured orders from major telecommunications equipment manufacturers[170]. - The company’s management noted that over 250,000 5G base stations were built in the first half of 2020, with a total of 410,000 base stations expected by the end of the year[166]. - The company plans to build at least 600,000 5G base stations in China over the next 3-5 years, anticipating a significant development period for 5G infrastructure[184]. - The company has successfully won bids for 5G-related products, including non-skeleton flat cables and leakage cables, which are expected to positively impact future performance[170]. Research and Development - The company incurred research and development costs of RMB (30,509,000) for the six months ended June 30, 2020, indicating ongoing investment in innovation[82]. - The company has developed 207 new products and obtained 167 patents as of June 30, 2020, enhancing its competitive edge in the market[183]. Market Strategy - The company aims to expand its customer base beyond the three major telecom operators to include sectors such as public security and microwave communication[188]. - The company plans to enhance its market share in overseas markets such as Korea, Southeast Asia, Europe, and the Middle East, leveraging existing product and technology advantages[190]. - The company aims to continue developing overseas opportunities and expand its diverse sales channels, particularly in the context of growing demand for mobile infrastructure and 5G construction[190]. Dividend and Shareholder Returns - No interim dividend was recommended for the first half of 2020, compared to zero in the first half of 2019[30]. - The company did not declare an interim dividend for the six months ended June 30, 2020, consistent with the previous year[95].

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].