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告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 D&G TECHNOLOGY HOLDING COMPANY LIMITED 德基科技控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：1301） 截至2022年12月31日止年度之 年度業績公告 德基科技控股有限公司（「本公司」）董事會（「董事會」）欣然公佈本公司及其附屬公 司（統稱「本集團」）截至2022年12月31日止年度之經審核綜合業績，連同去年之比 較數字，列明如下： 綜合損益表 截至2022年12月31日止年度 2022年 2021年 附註 人民幣千元 人民幣千元 收益 4 345,387 429,203 ...

® 德 基 科 技 D&G TECHNOLOGY 德基科技控股有限公司 於開曼群島註冊成立之有限公司> 股份代號 1301 .... aringcompa BC (CC 47) 設計、印刷及製作由智盛財經媒體有限公司提供 www.gennexfm.com | --- | --- | |--------------------------|-------| | | 目錄 | | 公司資料 | 2-3 | | 管理層討論及分析 | 4-17 | | 其他資料 | 18-28 | | 中期財務資料審閱報告 | 29-30 | | 中期簡明綜合損益表 | 31 | | 中期簡明綜合全面收益表 | 32 | | 中期簡明綜合財務狀況表 | 33-34 | | 中期簡明綜合權益變動表 | 35 | | 中期簡明綜合現金流量表 | 36 | | 簡明綜合中期財務資料附註 | 37-58 | 公司資料 | --- | --- | |---------------------------------------------|---------------------------------------------------- ...

Financial Performance - Revenue for the year ended December 31, 2021, was RMB 429.2 million, an increase of 13.2% from RMB 378.9 million in 2020[13] - Gross profit for the same period was RMB 140.4 million, representing a gross margin of approximately 32.7%[13] - The net profit attributable to shareholders was RMB 10.7 million, a significant recovery from a loss of RMB 17.2 million in 2020[13] - The total equity of the company increased to RMB 667.2 million in 2021, up from RMB 647.2 million in 2020[13] - The group’s revenue for the year ended December 31, 2021, was RMB 429,203,000, an increase of approximately 13.3% compared to RMB 378,929,000 in 2020[42] - Gross profit rose from RMB 77,997,000 in 2020 to RMB 140,421,000 in 2021, representing an increase of about 80.0%[42] - The overall gross profit margin increased by 12.1 percentage points to 32.7%[42] - Sales of asphalt mixing equipment reached RMB 385,240,000, an increase of 18.9% from RMB 323,124,000 in 2020[43] - Revenue from sales in China increased by 31.1% to RMB 363,735,000, with gross profit rising by 50.3% to RMB 122,940,000[49] - Overseas revenue decreased by 54.0% to RMB 21,505,000, with gross profit dropping by 60.0% to RMB 4,401,000[49] Operational Highlights - The company has positioned itself as a comprehensive intelligent environmental solution provider, launching new products including asphalt mixing equipment and sand processing equipment[16] - The company has integrated "5G + Industrial Internet of Things (IIoT)" into its existing and new asphalt mixing equipment to enhance management and quality assurance[16] - The company is focused on upgrading its services and products to improve overall operational efficiency[16] - The company completed 41 sales contracts for asphalt mixing equipment during the year, including 4 units sold to overseas markets such as Bangladesh and Cameroon[27] - The company is actively seeking strategic partners to develop and sell asphalt mixing materials, aiming to broaden revenue sources[28] - The company plans to expand its business into potential markets along the "Belt and Road" initiative, anticipating a recovery in road construction projects once COVID-19 is controlled[27] Environmental Commitment - The company is focusing on developing environmentally friendly technologies and new products to reduce operational environmental impact[18] - A strategic partnership was established with Tsinghua University to develop advanced NOx burner technology for green transformation[18] - The group has received multiple awards for its contributions to environmental protection, including the "Environmental Excellence Enterprise" award and recognition as a "Green Enterprise" for six consecutive years[38] - The demand for recycled environmental products is expected to continue increasing due to heightened environmental awareness among asphalt mixing companies and government policies aimed at reducing industrial pollution[39] - The company is committed to environmental compliance and has implemented policies to ensure adherence to increasingly stringent environmental laws in China[89] Research and Development - The group has registered 40 patents related to combustion technology as of December 31, 2021, up from 39 patents in 2020, indicating ongoing innovation in the combustion equipment sector[30] - The company is investing $50 million in research and development for new technologies aimed at enhancing product efficiency and sustainability[110] - The company has completed a strategic acquisition of a competitor, valued at $200 million, which is anticipated to increase market share by 10%[110] Corporate Governance - The company has maintained compliance with the corporate governance code throughout the year ending December 31, 2021[126] - The board consists of eleven members, including five executive directors, two non-executive directors, and four independent non-executive directors[129] - The company has established a written guideline for employees regarding securities trading, ensuring compliance with the standard code[128] - The company has a strong commitment to high standards of corporate governance to protect shareholder interests and enhance corporate value[124] - The company has adopted a board diversity policy to enhance competitive advantage, focusing on various aspects including gender, age, cultural background, and professional qualifications[153] Future Outlook - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[110] - The company plans to enhance its digital marketing efforts, allocating an additional $10 million to improve customer engagement and retention[110] - The board of directors has approved a dividend increase of 5%, reflecting confidence in the company's financial health and future prospects[110] Risk Management - The company faces risks related to trade receivables and notes that may not be collected in a timely manner, influenced by external factors such as government funding delays[88] - The company continues to monitor foreign exchange risks and may use financial hedging tools if necessary, although none were used in the reporting period[76] - The company has established a risk management and internal control system that is reviewed at least annually to ensure its effectiveness[175] Employee and Compensation - As of December 31, 2021, the company had approximately 381 employees, a decrease from 402 in 2020[91] - Total employee costs for the year ended December 31, 2021, were approximately RMB 75,129,000, compared to RMB 68,791,000 in 2020, reflecting an increase of about 1.97%[91] - The company has adopted a stock option plan to reward employees and directors for their services[91] Financial Position - Current assets increased to RMB 466,251,000 as of December 31, 2021, compared to RMB 432,523,000 as of December 31, 2020, with a current ratio of 2.9 times[67] - Cash and cash equivalents increased to RMB 199,644,000 as of December 31, 2021, from RMB 188,778,000 as of December 31, 2020, while interest-bearing bank borrowings decreased to RMB 19,623,000 from RMB 31,145,000[69] - The asset-liability ratio based on total borrowings divided by equity attributable to owners was 2.9% as of December 31, 2021, down from 4.8% in 2020[69]

Revenue and Profitability - The revenue from the sale of asphalt mixing equipment increased by approximately 62.0%, accounting for about 91.6% of the total revenue for the period[9]. - The gross profit rose to RMB 66,089,000, compared to RMB 14,227,000 in the previous year, primarily due to increased sales of asphalt mixing equipment[9]. - The group recorded total revenue of RMB 197,078,000 for the six months ended June 30, 2021, representing an increase of approximately 53.6% compared to RMB 128,331,000 in the same period last year[28]. - Gross profit increased from RMB 14,227,000 to RMB 66,089,000, a growth of approximately 364.5%, with the gross margin rising from 11.1% to 33.5%[28]. - The company reported a net profit attributable to owners of RMB 8,228,000 for the six months ended June 30, 2021, compared to a loss of RMB 27,009,000 in the same period of 2020, indicating a significant recovery in profitability[55]. - The basic earnings per share for the period was RMB 1.31, compared to a loss per share of RMB 4.34 in the previous year[124]. Sales and Contracts - The company completed sales contracts for 20 asphalt mixing equipment units during the period, up from 13 units in 2020[9]. - Revenue from asphalt mixing equipment sales reached RMB 180,559,000, up 62.0% from RMB 111,476,000, driven by an increase in the number of contracts and higher gross margins[31]. - The number of contracts for asphalt mixing equipment sales increased from 13 to 20, with an average contract value rising by 5.3% to RMB 9,028,000[31]. - Revenue from recycled equipment sales surged by 142.4% to RMB 94,446,000, attributed to an increase in completed contracts and average contract value[36]. - Revenue from conventional equipment sales increased by 18.8% to RMB 86,113,000, despite a decrease in average contract value[36]. Market Expansion and Strategy - The company is expanding its business into potential markets along the "Belt and Road" initiative, with 3 units sold to overseas countries during the period[12]. - The company has developed a series of containerized and trailer-type asphalt mixing equipment to further penetrate the developing country market[12]. - The company continues to focus on providing customized solutions for asphalt mixing equipment in both domestic and international markets[8]. - The company is expanding its asphalt supply chain business to enhance revenue sources and profitability, focusing on asphalt mixture production and sales[14]. - The company is exploring opportunities in the upstream and downstream supply chain of road construction and maintenance materials, leveraging its extensive customer base across 35 countries[27]. Financial Management and Assets - The company has been actively monitoring trade receivables, resulting in a reversal of impairment losses of approximately RMB 5,200,000 during the period[12]. - The company's current assets net value as of June 30, 2021, was RMB 457,829,000, up from RMB 432,523,000 as of December 31, 2020, with a current ratio of 2.4 times[56]. - Inventory increased by RMB 10,961,000 to RMB 241,965,000 as of June 30, 2021, with inventory turnover days rising to 327 days from 305 days[56]. - Trade receivables and notes receivable increased by RMB 7,527,000 to RMB 197,161,000, with turnover days decreasing to 178 days from 201 days[58]. - The company recorded a net cash inflow from operating activities of RMB 9,401,000 for the six months ended June 30, 2021, compared to an outflow of RMB 6,131,000 for the same period in 2020[60]. Research and Development - As of June 30, 2021, the company has registered 40 patents related to combustion technology, up from 39 at the end of 2020, indicating ongoing R&D efforts[16]. - As of June 30, 2021, the company holds 149 registered patents and 27 software copyrights, demonstrating strong R&D capabilities in the asphalt mixing equipment sector[20]. - Administrative expenses increased by approximately RMB 3,300,000, primarily due to an increase in research and development expenses of RMB 4,200,000[48]. Shareholder Information and Stock Options - As of June 30, 2021, Mr. Cai Hongnan held 345,696,000 shares, representing approximately 54.07% of the company's equity[69]. - The company has a stock option plan, with 4,000,000 options exercised by key executives, reflecting their vested interests in the company[74]. - The maximum number of shares that can be issued under the stock option plan is capped at 60,000,000 shares, representing about 9.38% of the total issued shares as of the mid-term report date[87]. - The company issued a total of 10,000,000 stock options during the reporting period, with an exercise price of HKD 0.88[95]. - The company confirmed no stock option expenses for the six months ending June 30, 2021[93]. Risks and Challenges - The ongoing US-China trade tensions are not expected to have a direct impact on the company's performance, although there may be indirect effects on export business due to economic conditions in Belt and Road Initiative countries[24]. - The company faced foreign exchange risks due to sales and procurement in foreign currencies, particularly USD and EUR, which could impact export sales negatively or positively depending on RMB fluctuations[66]. - The company continues to monitor foreign exchange risk levels and may use financial hedging tools as necessary, although no hedging tools were used as of June 30, 2021[66]. Future Outlook - The company anticipates increased local demand for asphalt mixing equipment in the second half of 2021 due to government investment in infrastructure projects[27]. - Future guidance suggests a positive outlook for revenue growth, driven by new product launches and market penetration[100]. - The company plans to continue its market expansion strategy, focusing on new product development and technology innovation[96].

Financial Performance - The company's revenue for 2020 was RMB 378,929,000, a decrease of 15.1% compared to RMB 446,426,000 in 2019[8] - The gross profit for 2020 was RMB 77,997,000, down from RMB 87,729,000 in 2019, reflecting a decline of 11.7%[8] - The net loss attributable to shareholders for 2020 was RMB 17,244,000, an improvement from a loss of RMB 35,076,000 in 2019[8] - Total assets as of December 31, 2020, were RMB 923,128,000, slightly down from RMB 931,617,000 in 2019[8] - Revenue from asphalt mixing equipment sales decreased by 13.9% to RMB 324,124,000 in 2020 from RMB 376,590,000 in 2019[38] - Gross profit for asphalt mixing equipment sales fell by 12.7% to RMB 92,759,000, with a gross margin of 28.6%, slightly up from 28.2% in 2019[38] - Revenue from recycling equipment sales dropped by 18.7% to RMB 119,470,000, with a gross margin of 29.9%, down from 31.6%[42] - Revenue from conventional equipment sales decreased by 10.9% to RMB 204,654,000, while the gross margin increased to 27.9% from 26.0%[43] - Revenue from parts and components sales increased by 20.8% to RMB 49,055,000, with a gross margin of 46.8%, up from 40.5%[47] - Revenue from operating leases of asphalt mixing equipment plummeted by 80.3% to RMB 5,750,000, primarily due to a decrease in total production[50] Market and Demand - The company secured numerous contracts during the year, indicating strong demand in the road construction and maintenance machinery sector[12] - The Chinese government's fixed asset investment increased by 2.9% year-on-year in 2020, reaching RMB 5,189,070,000,000, which is expected to benefit the company's infrastructure projects[13] - The outlook for the infrastructure sector is positive, driven by government investments aimed at optimizing national transportation layouts[13] - The company plans to leverage opportunities arising from China's shift towards a domestic demand-driven economy, particularly in road construction and maintenance[12] - The company anticipates that infrastructure projects in China will receive increased financial support, which will benefit its operations[18] - The company continues to face uncertainties in overseas markets due to COVID-19 but expects a recovery in road construction projects once the situation stabilizes[24] Research and Development - The company’s R&D center was recognized as a "Hebei Provincial Enterprise Technology Center," which may facilitate future technological advancements[12] - The company plans to enhance its R&D capabilities and has introduced the first "5G + IIoT" asphalt mixing equipment in Hubei Province, aiming for improved operational efficiency and quality assurance[18] - As of December 31, 2020, the company had registered 39 patents related to combustion technology, up from 31 patents as of December 31, 2019[27] - The company has a total of 130 registered patents in China, including 4 invention patents and 1 design patent, with 35 patents pending registration as of December 31, 2020[32] Inventory and Financial Management - The company has established procedures to closely monitor inventory levels and expects gradual improvement in inventory management[21] - The company recorded an inventory impairment of RMB 32,977,000 in 2020, compared to RMB 27,441,000 in 2019, impacting the cost of sales[41] - Trade receivables impairment losses were reversed by approximately RMB 26,000,000 due to improved collection of long-term overdue accounts[22] - The net cash generated from operating activities was RMB 126,520,000 for the year ended December 31, 2020, compared to RMB 29,903,000 in 2019[66] Corporate Governance - The company has a strong focus on corporate governance and internal control, with experienced non-executive directors providing oversight[108] - The board believes that it has complied with all principles and code provisions of the Corporate Governance Code during the year ended December 31, 2020[123] - The company has established written guidelines for employees regarding securities trading to comply with the standard code, with no known violations reported[125] - The board has received written annual confirmations of independence from all independent non-executive directors, affirming their compliance with independence guidelines[130] - The company has adopted a board diversity policy, which emphasizes the importance of diversity in maintaining competitive advantage[152] Employee and Workforce Management - The total employee cost was approximately RMB 68,791,000, a decrease of 14.9% from RMB 80,818,000 in 2019[88] - The group had approximately 402 employees as of December 31, 2020, down from 436 in 2019, indicating a reduction in workforce[88] Strategic Partnerships and Expansion - The company is actively seeking strategic partners to develop and sell asphalt mixing materials, aiming to expand revenue sources and enhance profitability[25] - The company plans to expand its sales of asphalt mixing equipment in overseas markets, particularly in India, Southeast Asia, and the Middle East[81] Environmental and Compliance Efforts - The group aims to operate in an environmentally friendly manner, focusing on sustainable development and reducing operational environmental impact[75] - The group has implemented environmental compliance policies to ensure adherence to increasingly stringent environmental laws, which may increase operational costs[86] - The company has established a whistleblowing policy to maintain a culture of transparency and integrity, allowing employees to report violations confidentially[183]

Revenue and Sales Performance - In the first half of 2020, the company completed 13 asphalt mixing equipment sales contracts, a decrease of approximately 39.1% compared to 2019, with sales of asphalt mixing equipment accounting for about 88.3% of total revenue[9]. - The total revenue for the six months ended June 30, 2020, was RMB 128,331,000, a decrease of approximately 38.0% compared to RMB 207,102,000 in the same period of 2019[32]. - Sales of asphalt mixing equipment and related services decreased by 39.1% to RMB 111,476,000, while leasing income from asphalt mixing equipment dropped by 82.9% to RMB 1,060,000[33]. - Revenue from recycled equipment sales decreased by 50.0% to RMB 38,961,000, with a gross profit margin of 29.2%, down from 34.3%[38]. - Revenue from conventional equipment sales decreased by 31.0% to RMB 72,515,000, with a gross profit margin of 25.8%, up from 22.1%[39]. - Revenue from sales in China decreased by 49.1% to RMB 81,180,000, while overseas sales increased by 29.8% to RMB 30,296,000[41][42]. - Revenue from the sale of asphalt mixing equipment and related parts was RMB 111,476,000 for the six months ended June 30, 2020, compared to RMB 182,954,000 for the same period in 2019, representing a decrease of approximately 39%[161]. - Revenue from leasing asphalt mixing equipment was RMB 1,060,000 for the six months ended June 30, 2020, down from RMB 6,196,000 in the same period of 2019, indicating a decline of about 83%[161]. Profitability and Financial Performance - The company's gross profit decreased to RMB 14,227,000 in 2020 from RMB 37,733,000 in 2019, primarily due to reduced sales of asphalt mixing equipment and increased inventory impairment to RMB 15,586,000 from RMB 6,597,000 in 2019[11]. - Gross profit fell from RMB 37,733,000 in the first half of 2019 to RMB 14,227,000 in the first half of 2020, representing a decline of about 62.3%[32]. - The gross profit margin decreased from 18.2% to 11.1%, a drop of 7.1 percentage points[32]. - The net loss attributable to the company's owners was approximately RMB 27,000,000, an increase from RMB 24,000,000 in the same period last year[58]. - The operating loss for the six months ended June 30, 2020, was RMB 29,956,000, compared to an operating loss of RMB 32,564,000 in 2019, showing an improvement of approximately 8%[129]. - The net loss attributable to the owners of the company was RMB 27,009,000 for the six months ended June 30, 2020, compared to a net loss of RMB 24,028,000 for the same period in 2019, representing an increase in loss of approximately 12%[177]. - Basic loss per share for the six months ended June 30, 2020, was RMB (4.34), compared to RMB (3.87) for the same period in 2019, indicating a worsening of the loss per share by about 12%[177]. Cash Flow and Liquidity - The company has made efforts to improve cash flow by closely monitoring trade receivables, recovering approximately RMB 10,900,000 in previously impaired long-term overdue trade receivables during the period[12]. - The net cash used in operating activities was RMB (6,131) thousand for the six months ended June 30, 2020, compared to RMB (35,062) thousand for the same period in 2019, indicating a significant improvement[142]. - Cash generated from investing activities was RMB 25,765 thousand, a turnaround from RMB (8,398) thousand in the previous year, highlighting a positive cash flow from investments[142]. - The cash and cash equivalents at the end of the period increased to RMB 97,128 thousand from RMB 69,845 thousand, representing a growth of 39.0%[142]. - The company's current assets net value increased to RMB 436,822,000 from RMB 423,207,000, with a current ratio of 2.8 times[59]. Inventory and Receivables Management - The company plans to gradually improve inventory levels and has established procedures to monitor inventory closely[11]. - Inventory increased by RMB 24,627,000 to RMB 296,008,000, with inventory turnover days rising to 453 days from 285 days[61]. - Trade receivables decreased by RMB 39,517,000 to RMB 187,368,000, with turnover days increasing to 294 days from 188 days[61]. - The overall settlement situation of customers has improved, indicating a positive trend in receivables collection[12]. - The company aims to strengthen internal control procedures to enhance the collection cycle of trade receivables[12]. Strategic Initiatives and Market Outlook - The company continues to focus on providing customized solutions for asphalt mixing equipment, catering to both domestic and overseas markets[8]. - The company is developing containerized and trailer-type asphalt mixing equipment to penetrate emerging markets[14]. - The company is actively seeking strategic partners to develop and sell asphalt mixing materials to expand its revenue sources[15]. - The company anticipates that road construction projects in Belt and Road Initiative countries will resume once COVID-19 is under control[14]. - The company is exploring business opportunities to develop upstream supply chain for road construction and maintenance materials and downstream asphalt mixing services[31]. Patents and Innovations - As of June 30, 2020, the company has registered 36 patents related to combustion technology, up from 31 at the end of 2019[18]. - The company holds 121 registered patents and 26 software copyrights as of June 30, 2020, with 21 patents pending registration[23]. Corporate Governance and Employee Matters - The company adhered to the corporate governance code as outlined in the Stock Exchange Listing Rules during the six months ended June 30, 2020[112]. - The total employee cost for the six months ended June 30, 2020, was approximately RMB 33,686,000, down from RMB 40,040,000 for the same period in 2019[109]. - Directors' remuneration was reduced by 20% from May to July 2020 as part of cost control measures during the COVID-19 pandemic[116]. - The company had approximately 402 employees as of June 30, 2020, compared to 436 employees as of December 31, 2019[109]. Financial Position and Liabilities - Total assets as of June 30, 2020, were RMB 895,051 thousand, down from RMB 931,617 thousand as of December 31, 2019, representing a decrease of about 4%[135]. - The company's total equity decreased to RMB 643,839 thousand from RMB 666,887 thousand, reflecting a decline of approximately 3.5%[135]. - Total liabilities amounted to RMB 251,212 thousand, a decrease of 5.1% from RMB 264,730 thousand as of December 31, 2019[137]. - The company's borrowings decreased to RMB 61,306,000 as of June 30, 2020, from RMB 77,551,000 as of December 31, 2019, a decrease of 21.0%[193].

Financial Performance - Revenue for 2019 was RMB 446,426 thousand, an increase of 36% compared to RMB 328,155 thousand in 2018[7] - Gross profit for 2019 was RMB 165,408 thousand, up from RMB 87,729 thousand in 2018, reflecting a significant improvement in profitability[7] - The net profit attributable to owners for 2019 was RMB 30,788 thousand, a turnaround from a loss of RMB 35,076 thousand in 2018[7] - The total revenue for the year ended December 31, 2019, increased by 36.0% to RMB 446,426,000, with sales of asphalt mixing equipment accounting for approximately 84.4% of total revenue[18] - Revenue from asphalt mixing equipment sales increased to RMB 376,590,000 in 2019, up 44.1% from RMB 260,979,000 in 2018[40] - Revenue from conventional equipment sales surged by 186.1% to RMB 229,575,000, driven by an increase in the number of contracts and average contract value[42] - Revenue from parts and components sales grew by 17.0% to RMB 40,597,000, with a gross margin of 40.5%, up from 37.7% in 2018[46] - Operating lease income from asphalt mixing equipment reached RMB 29,239,000, a 71.4% increase from RMB 17,055,000 in 2018, despite a recorded gross loss of RMB 7,519,000[50] - The company recorded total revenue of RMB 446,426,000 for the year ended December 31, 2019, representing an increase of approximately 36.0% compared to RMB 328,155,000 in 2018[36] Assets and Liabilities - Total assets as of December 31, 2019, were RMB 931,617 thousand, a decrease from RMB 962,216 thousand in 2018[7] - Total liabilities decreased to RMB 212,239 thousand in 2019 from RMB 264,730 thousand in 2018, indicating improved financial stability[7] - As of December 31, 2019, the group's current assets net value was RMB 423,207,000, with a current ratio of 2.6, unchanged from the previous year[62] - Trade receivables and bills receivable decreased to RMB 226,885,000 from RMB 233,965,000 in 2018, with turnover days improving to 188 days from 349 days[63] - Trade payables and bills payable decreased to RMB 104,295,000 from RMB 149,159,000 in 2018, with turnover days improving to 129 days from 247 days[64] - Cash and cash equivalents as of December 31, 2019, were RMB 94,912,000, up from RMB 64,407,000 in 2018, while interest-bearing bank borrowings increased to RMB 72,258,000 from RMB 60,102,000[67] Market Opportunities and Strategy - The company anticipates significant opportunities in the road construction and maintenance machinery sector due to ongoing investments in transportation infrastructure by the Chinese government[11] - The Chinese government plans to invest over RMB 1.8 trillion in new highway construction in 2020, which is expected to drive industry growth[11] - The company is focused on expanding its market presence and enhancing its product offerings in response to the growing demand for infrastructure development[11] - The ongoing U.S.-China trade tensions and recent COVID-19 outbreak are expected to impact the global economy, but the company remains optimistic about future infrastructure investments in China[11] - The company is committed to leveraging its competitive advantages to capitalize on the anticipated growth in the infrastructure sector over the coming years[11] Research and Development - The company plans to enhance its research and development capabilities through strategic partnerships to diversify its business portfolio[19] - The company allocated RMB 52.8 million for research and development, fully utilized by December 31, 2019[87] - The company continues to develop combustion technology, having registered 31 patents related to combustion technology as of December 31, 2019[27] - As of December 31, 2019, the company had registered 109 patents in China, including 4 invention patents, and 26 software copyrights[30] Employee and Management - The total employee cost was approximately RMB 80,818,000, an increase from RMB 77,678,000 in 2018[85] - The company had a total of approximately 436 employees as of December 31, 2019, down from 453 in 2018[85] - The management team has extensive experience in the engineering equipment trade, with key executives having over 20 years of industry experience[90][92][98] - Liu Jinzhih has over 32 years of experience in sales and marketing, serving as the General Manager of the sales and marketing team since October 2002[100] - Chen Linghong has over 20 years of experience in asset management and investment research, holding a bachelor's degree in economics from the University of Chicago[104] Corporate Governance - The company has maintained compliance with all principles and code provisions of the Corporate Governance Code throughout the year ended December 31, 2019[119] - The board consists of eleven members, including five executive directors, two non-executive directors, and four independent non-executive directors[122] - The company has received written annual confirmations from all independent non-executive directors regarding their independence[125] - The company has implemented a framework to safeguard shareholder interests and enhance corporate value through high standards of corporate governance[117] - The company has established four committees: audit, remuneration, nomination, and risk management to oversee specific aspects of governance[136] Risks and Challenges - The group faces foreign exchange risk due to sales and procurement in foreign currencies, with no financial hedging tools used as of December 31, 2019[70] - The group faces credit risk from potential delays in receivables due to external factors affecting clients' projects[81] - Increased operational costs may arise from stricter environmental regulations imposed by the Chinese government[82] - The group’s revenue heavily relies on the growth of road construction and maintenance projects in China, with potential risks from economic slowdowns[79] Financial Reporting - The company reported a loss for the year ending December 31, 2019, with detailed financial statements available on pages 52 to 120 of the annual report[193] - The company did not recommend the distribution of a final dividend for the year ending December 31, 2019, and there was no interim dividend declared[194] - As of December 31, 2019, the company's distributable reserves amounted to RMB 442,620,000[196] - The company did not issue any bonds during the year ending December 31, 2019[200]

@ 基 科 技 德 D&G TECHNOLOGY 德基科技控股有限公司 股份代號 1301 .... 2019 中期業績報告 商界展開賣 caringcompany ong Council 11 11 2017 目錄 2 公司資料 3-13 管理層討論及分析 14-20 其他資料 21 中期財務資料審閱報告 22 中期簡明綜合損益表 23 中期簡明綜合全面收益表 24-25 中期簡明綜合財務狀況表 26 中期簡明綜合權益變動表 27 中期簡明綜合現金流量表 28-44 簡明綜合中期財務資料附註 公司資料 | --- | --- | |-----------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------| | 董事會 | 註冊辦事處 | | 執行董事 | Cricket S ...

Financial Performance - Total revenue for 2018 was RMB 328.155 million, a decrease of 26.8% from RMB 447.927 million in 2017[9] - Gross profit for 2018 was RMB 98.124 million, down from RMB 170.625 million in 2017, reflecting a decline of 42.5%[9] - The company reported a net loss attributable to shareholders of RMB 48.412 million for 2018, compared to a profit of RMB 21.157 million in 2017[9] - Total assets decreased to RMB 962.216 million in 2018 from RMB 1,027.947 million in 2017, a decline of 6.4%[9] - Total liabilities were RMB 265.052 million in 2018, down from RMB 287.131 million in 2017, indicating a reduction of 7.7%[9] - Overall gross margin fell by 8.2 percentage points to 29.9%[33] - The net loss attributable to the company's owners was RMB 48,412,000, compared to a net profit of RMB 21,157,000 in the previous year[33] - Revenue from asphalt mixing equipment sales decreased by 29.0% to RMB 260,979,000, while the number of contracts fell by 20 to 32[34] - Revenue from recycling equipment sales decreased by 11.0% to RMB 180,735,000, with gross margin dropping by 5.9 percentage points to 32.1%[38] - Revenue from conventional equipment sales decreased by 51.2% to RMB 80,244,000, primarily due to a reduction in contract numbers and average contract value[39] - Revenue from parts and components sales decreased by 8.7% to RMB 34,693,000, with gross margin declining by 7.8 percentage points to 37.7%[43] - Revenue from overseas sales plummeted by 67.7% to RMB 35,427,000, attributed to a significant decrease in completed contracts[42] - The operating lease revenue from asphalt mixing equipment decreased by 55.3%, primarily due to a reduction in total production compared to last year, resulting in a gross loss of approximately RMB 3,771,000[47] - Other income and net other gains decreased mainly due to a reduction in government subsidies and foreign exchange gains[49] - Administrative expenses increased by approximately RMB 9,800,000, driven by higher employee costs and increased depreciation from the rise in leased asphalt mixing equipment[51] - The net impairment loss on financial assets increased to RMB 27,900,000, up from RMB 19,100,000 in the previous year, due to delays in public-private partnership projects in China[52] - The company reported a loss attributable to owners of approximately RMB 48,400,000 for the year, compared to a profit of RMB 21,200,000 in the previous year, primarily due to decreased revenue and increased administrative expenses[57] Market Expansion and Strategy - The company plans to expand its footprint in the "Belt and Road" initiative markets, having established subsidiaries in Singapore, India, and Pakistan since its listing in 2015[12] - The company anticipates that infrastructure investment projects in China will yield results starting in early 2019, with a projected increase in investment of RMB 800 billion[12] - The company aims to leverage its experience and eco-friendly products to meet current market demands, particularly in asphalt mixing equipment[12] - The company has successfully entered the "Belt and Road" market, with six of the completed sales contracts for asphalt mixing equipment being in overseas countries, including Russia, Bangladesh, Myanmar, Malaysia, and Pakistan[20] - The company has developed a new series of containerized and trailer-mounted asphalt mixing equipment to further penetrate the developing country market[20] - The company has established a strategic partnership with local clients in Pakistan, marking the first operating lease contract for asphalt mixing equipment in that region[20] - The company anticipates further participation in more road construction projects along the "Belt and Road" countries due to its improved overseas network[20] - The company has expanded its business strategy to include upstream development of road construction and maintenance material supply chains and downstream asphalt mixing material services[32] - The company anticipates that clients will accelerate settlement processes due to more road projects in China, preparing to leverage opportunities in India and ASEAN regions[32] - The company completed two contracts related to supplying asphalt tanks and equipment for road construction projects in Pakistan[24] Research and Development - The company is committed to enhancing its research and development capabilities, focusing on advanced technologies such as burner components for asphalt mixing equipment[16] - The company allocated RMB 51.3 million for research and development, with RMB 1.5 million remaining unutilized as of December 31, 2018[86] - The company registered 26 patents related to combustion technology by December 31, 2018, with 4 patents pending registration[24] - The company has a total of 91 registered patents in China, including 4 invention patents, and 16 patents pending registration as of December 31, 2018[27] - The company expects continued demand for recycled environmental products due to increasing environmental awareness in the asphalt mixing material production process[30] - The company aims to enhance its competitive advantage through green technology innovation and maintain its leading market position[30] Corporate Governance and Management - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[116] - The board consists of eleven members, including five executive directors, two non-executive directors, and four independent non-executive directors[121] - The company has complied with all provisions of the corporate governance code throughout the year ended December 31, 2018[118] - The independent non-executive directors have confirmed their independence according to the guidelines set out in the listing rules[124] - The company has adopted the standard code for securities trading by directors, ensuring compliance throughout the year[120] - The company has established four committees: audit, remuneration, nomination, and risk management, to oversee specific aspects of its affairs[134] - The audit committee includes members with appropriate professional qualifications in finance and accounting[135] - The remuneration committee ensures transparency in setting compensation for directors and senior management[136] - The nomination committee evaluates the independence of non-executive directors and proposes candidates for board appointments[140] - The company provides liability insurance for directors and senior management against legal actions arising from company activities[131] - The company has adopted a board diversity policy, recognizing that enhancing diversity is essential for maintaining competitive advantage[142] - The board has reviewed the company's corporate governance policies and practices during the year ended December 31, 2018[150] Operational Challenges - The company faced challenges due to delays in public-private partnership projects and stricter environmental regulations impacting equipment installation and commissioning[12] - The overall performance was negatively impacted by the ongoing US-China trade war and currency fluctuations affecting the company's operations[12] - The company is facing increased operational costs due to stricter environmental compliance regulations in China[80] - The group faces credit risk related to trade receivables, with potential delays in payment due to external factors affecting clients' projects[79] Employee and Financial Management - The total employee cost for the year ended December 31, 2018, was approximately RMB 68,986,000, an increase from RMB 62,852,000 in 2017[84] - As of December 31, 2018, the company had approximately 453 employees, up from 445 in 2017[84] - The company has granted a total of 23,100,000 share options to employees and directors during the year ended December 31, 2018[84] - The company has adopted an employee stock option plan to reward employees and directors for their services[84] - The company has utilized RMB 74 million for working capital and general corporate purposes as of December 31, 2018[86] Financial Activities and Investments - The net cash generated from operating activities was RMB 63,178,000, a decrease from RMB 68,552,000 in 2017[65] - The net cash used in investing activities for the year was RMB 35,393,000, down from RMB 46,697,000 in 2017[65] - The net cash used in financing activities increased to RMB 9,034,000 from RMB 7,280,000 in 2017[65] - The group did not engage in any significant investments or acquisitions during the year ended December 31, 2018[69] - The company has established independent records to monitor the use of funds raised from the global offering to ensure compliance with sanctions commitments[192] Shareholder Communication - The company maintains effective communication with shareholders, particularly through annual general meetings[185] - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting[179] - The company has a disclosure system to ensure timely and consistent disclosure of potential inside information[176]