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之內容概不負 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 就 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之任何損失承擔任何責任。 温嶺浙江工量刃具交易中心股份有限公司 Wenling Zhejiang Measuring and Cutting Tools Trading Centre Company Limited* （於中華人民共和國註冊成立的股份有限公司） （股份代號：1379） 正面盈利預告 金國鑫 本 公 司 仍 在 落 實 本 集 團 於 該 期 間 之 未 經 審 核 綜 合 中 期 業 績。本 公 告 所 載 資 料 乃 基於董事會參考本集團於該期間之未經審核綜合管理賬目及目前可得資料作出 之初步評估，有關資料未經本公司核數師或董事會審核委員會確認、審閱或審核， 並 可 能 作 出 調 整 及 可 能 與 本 公 告 所 披 露 之 資 料 有 所 不 同。本 集 團 就 該 期 間 之 中 期業績公告預期將於2025年8月底前刊發。 – 1 – 本公司股東及 ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 溫嶺浙江工量刃具交易中心股份有限公司(「本公司」) 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | H | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01379 | 說明 | H股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 20,000,000 | RMB | | 1 RMB | | 20,000,000 | | 增加 / 減少 (-) | | | 0 | | | RMB | | | | 本月底結存 | | | 20,000,000 | RMB | | 1 RMB | | 20,000,000 | | 2. 股份分類 | 普通股 ...

作者：港股君 温岭浙江工量刃具交易中心股份有限公司为中国领先工量刃具交易中心运营商。根据弗若斯特沙利文报 告,於2017年,就工量刃具收益及交易价值而言,公司的交易中心於中国排名第一,及於2017年12月31日,其 类型及品牌数量亦排名第一。公司拥有、经营及管理中国浙江省温岭市温峤镇前洋下村的交易中心。公 司的主要业务活动及收益来源主要来自於物业租赁业务,其乃透过经营工量刃具行业之交易中心。公司 致力於扩张该项於工量刃具行业的物业租赁业务至工业园区。 （以上内容为金融界基于公开消息，由程序或算法智能生成，不作为投资建议或交易依据。） 本文源自：金融界 截至7月30日收盘，温岭工量刃具（01379.HK）报2.400港元，较上个交易日上涨8.11%，当日盘中最高 价触及2.400港元，创近一年新高。 资金流向方面，当日主力流入NaN万港元，流出NaN万港元，净流入4.92万港元。 ...

Financial Performance - Total revenue for 2024 was approximately RMB 68.814 million, a decrease of 29% compared to RMB 96.802 million in 2023[10] - Gross profit for 2024 was approximately RMB 55.451 million, with a gross margin of 80.6%, up from 65.9% in 2023[10] - Net profit for 2024 was approximately RMB 15.070 million, resulting in a net profit margin of 21.9%, down from 28.1% in 2023[10] - Revenue and profit for the group decreased by 28.9% and 44.6% respectively compared to the previous year, primarily due to a lack of sales revenue from completed properties[39] - The net profit for the year decreased by approximately 44.6% from RMB 27.2 million for the year ending December 31, 2023, to approximately RMB 15.1 million for the year ending December 31, 2024, with a corresponding net profit margin decline from about 28.1% to approximately 21.9%[62] - Other net income decreased by approximately 98.8% from RMB 2.8 million in 2023 to RMB 0.04 million in 2024, mainly due to a reduction in government subsidies[59] - Administrative expenses decreased by approximately 9.3% from RMB 9.9 million in 2023 to RMB 9.0 million in 2024, attributed to reduced office and professional expenses related to e-commerce projects[60] Property and Leasing - The rental rate of the Zhejiang Wenzhou Tool Trading Center decreased to approximately 94.3% as of December 31, 2024, compared to 98.1% in the previous year[12] - The Group's property leasing income remained stable at approximately RMB 68.8 million for 2024, compared to RMB 68.6 million in 2023[12] - The average monthly rental for the first floor of the trading center was RMB 373.2 per square meter in 2024, slightly up from RMB 372.9 in 2023[44] - The trading center's total value as of December 31, 2024, was RMB 8.29 billion, down from RMB 8.457 billion in 2023[40] - The occupancy rate of the trading center was 94.3% as of December 31, 2024, compared to 98.11% in 2023[45] - The total rental area of the Science and Technology Innovation Park increased to 56,365.90 square meters with an occupancy rate of 68.6% as of December 31, 2024, compared to 37,877.82 square meters and 64.8% in 2023[48] Strategic Development - The Group plans to develop the second phase of the Science and Technology Innovation Park due to the ongoing demand in the tool industry[15] - The Group aims to integrate resources to provide value-added services such as logistics, property management, and e-commerce[15] - The Group is actively exploring how to assist clients in digital transformation through AI, cloud computing, and big data technologies[15] - The group aims to leverage its "market + industry" advantages to support the transformation and rise of the tooling industry[39] - The group anticipates that high-end tools and smart tools will become the main growth drivers in the next five years[37] Governance and Management - The company reported a strategic development and operational oversight led by Chairman Pan Haihong, who has over 25 years of management experience[18] - The board includes independent directors responsible for providing independent judgment and strategic advice for corporate development[24] - The company has a focus on compliance, risk management, and corporate governance, overseen by Executive Director Xu Yi[20] - The management team has extensive experience in administrative and operational roles, contributing to effective decision-making[22] - The company aims to enhance its market position through strategic recommendations from its non-executive directors[22] - The board's composition includes members with significant local governance experience, which aids in community engagement and strategic planning[23] - The company is committed to maintaining high standards of corporate governance through its audit and nomination committees[24] - The management team is actively involved in daily operations, ensuring alignment with the company's strategic goals[19] Economic Context - In 2024, China's GDP is projected to grow by 5.0%, indicating strong resilience in the manufacturing sector amidst global economic challenges[35] - The industrial added value for large-scale industries in China is expected to increase by 5.8% year-on-year in 2024, with equipment manufacturing and high-tech manufacturing as core drivers[35] - The added value of the equipment manufacturing industry is projected to grow by 7.7% year-on-year, while high-tech manufacturing is expected to achieve a growth rate of 8.9%, significantly higher than the overall industrial level[35] - In 2024, the GDP of Wenling City reached RMB 141.76 billion, representing a year-on-year growth of 6.3%[36] Financial Position - The Group's capital debt ratio was 0.0% for 2024, indicating no debt against total equity[10] - Cash and cash equivalents increased to approximately RMB 86.4 million as of December 31, 2024, from approximately RMB 74.4 million as of December 31, 2023, mainly due to a decrease in capital expenditures[63] - Capital expenditures for the year ending December 31, 2024, were approximately RMB 2.0 million, a significant decrease from approximately RMB 24.3 million in 2023[68] - The group has no bank loans as of December 31, 2024, but has obtained bank financing of RMB 233 million, with the unused amount also being RMB 233 million[66] - The group’s contingent liabilities as of December 31, 2024, were approximately RMB 91.5 million, down from RMB 103.4 million in 2023[70] Shareholder Information - The company has a significant concentration of ownership, with major shareholders collectively holding 97.00% of the shares[116] - The company has confirmed that it has not entered into any stock-linked agreements as of December 31, 2024[123] - The company meets the public float requirements as per the listing rules[124] - The total shareholding percentage of the major shareholders acting in concert is 72.75%[120] - The company has not engaged in any purchase, sale, or redemption of its listed securities during the fiscal year ending December 31, 2024[103] - The company anticipates paying dividends to domestic shareholders on May 16, 2025, and to H-share holders on May 30, 2025[88] Risk Factors - The group faces significant risks related to property leasing, industry cyclicality, and macroeconomic conditions in China, particularly in Zhejiang Province[81][83] - The group's profitability has declined due to investment property valuation losses, with future prospects dependent on property valuations, limited revenue growth, and increased cash outflows from loan interest[80] - The company's business operations and performance are significantly influenced by political, economic, and social policies in Zhejiang Province, where all revenues are generated[83] Corporate Governance - The company has established procedures to ensure compliance with applicable laws and regulations that have a significant impact on its operations[100] - The company has not reported any significant violations of applicable laws and regulations that would materially affect its business operations as of December 31, 2024[95] - The company has maintained high standards of corporate governance and has adopted the Corporate Governance Code[151] - The board of directors consists of executive directors, non-executive directors, and independent non-executive directors, ensuring effective leadership and governance[153] - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to support the board's functions[162] Audit and Compliance - The external auditor, PwC, has been appointed with an audit fee of RMB 1.0 million for the fiscal year ending December 31, 2024[197] - The audit committee has been informed of the nature and fees of non-audit services provided by PwC, which do not adversely affect the auditor's independence[197] - The auditor has reviewed the consolidated financial statements for the year ending December 31, 2024, and found no issues regarding the approval of transactions by the board[144] - The supervisory board expressed satisfaction with the company's operational performance and economic benefits for the year 2024[147] Future Outlook - The company has not provided specific future outlook or performance guidance in the recent reports[115] - The company plans to continue reviewing its corporate governance practices to meet increasing regulatory requirements and shareholder expectations[152]

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 68,814,000, a decrease of 28.9% compared to RMB 96,802,000 in 2023[2] - Gross profit for the same period was RMB 55,451,000, down 13.0% from RMB 63,747,000, with a gross margin of 80.6%, up from 65.9%[3] - Net profit for the year was RMB 15,070,000, representing a decline of 44.6% from RMB 27,210,000 in 2023, with a net profit margin of 21.9%[3] - Basic and diluted earnings per share decreased to RMB 0.19 from RMB 0.34, a drop of 44.1%[3] - Pre-tax profit for 2024 was RMB 20,970,000, down 39% from RMB 34,493,000 in 2023[20] - Total revenue decreased by approximately 28.9% from about RMB 96.8 million for the year ended December 31, 2023, to about RMB 68.8 million for the year ended December 31, 2024, primarily due to no property sales from the Sci-Tech Innovation Park in 2024[48] - Gross profit decreased by approximately 13.0% from about RMB 63.7 million for the year ended December 31, 2023, to about RMB 55.5 million for the year ending December 31, 2024, primarily due to no property sales profit in 2024[50] - Net profit for the year decreased by approximately 44.6% from about RMB 27.2 million for the year ended December 31, 2023, to about RMB 15.1 million for the year ending December 31, 2024[55] Dividends - The board proposed a final dividend of RMB 0.23 per share for the year ended December 31, 2024, unchanged from 2023[2] - The company proposed a final dividend of RMB 0.23 per share for both 2024 and 2023, totaling RMB 18,400,000[22] - The company plans to distribute a final dividend of RMB 18.4 million per share, based on the audited distributable profits of approximately RMB 81.0 million for the fiscal year 2024[75] - The expected payment date for the final dividend to domestic shareholders is May 16, 2025, and for H-share holders, it is May 30, 2025[75] Assets and Liabilities - Total assets less current liabilities amounted to RMB 1,028,504,000, down from RMB 1,045,835,000 in 2023[4] - Non-current liabilities decreased to RMB 226,695,000 from RMB 240,696,000 in the previous year[5] - Cash and cash equivalents increased to RMB 86,386,000 from RMB 74,437,000 in 2023[4] - Contingent liabilities decreased from approximately RMB 103.4 million as of December 31, 2023, to approximately RMB 91.5 million as of December 31, 2024[62] Revenue Sources - Property management service revenue increased to RMB 4,055,000 in 2024 from RMB 3,632,000 in 2023, representing an increase of 11.7%[13] - The company did not have any customer revenue exceeding 10% of total revenue for 2024[14] - Interest income from bank deposits decreased to RMB 120,000 in 2024 from RMB 234,000 in 2023[16] - Total other net income for 2024 was RMB 35,000, significantly down from RMB 2,818,000 in 2023[16] - Other net income decreased by approximately 98.8% from about RMB 2.8 million for the year ended December 31, 2023, to about RMB 0.04 million for the year ending December 31, 2024, primarily due to a reduction in government subsidies[52] Operational Metrics - The average monthly rental for the first floor was RMB 373.2 per square meter in 2024, slightly up from RMB 372.9 in 2023, while the average for the second floor was RMB 193.8, up from RMB 193.6[36] - The average monthly rental for the third floor decreased to RMB 62.8 in 2024 from RMB 65.0 in 2023, indicating a decline in rental income for that area[36] - The average monthly rental income per square meter for the parking area remained stable at RMB 17.1 for both 2024 and 2023[36] - As of December 31, 2024, the rental area of the trading center was 24,092.68 square meters, with an occupancy rate of 94.3%, down from 25,390.6 square meters and 98.11% in 2023[37] - The number of tenants in the trading center decreased slightly to 615 as of December 31, 2024, from 617 in the previous year[34] - The Sci-Tech Innovation Park had a total rental area of 56,365.90 square meters as of December 31, 2024, with an occupancy rate of 68.6%, compared to 37,877.82 square meters and 64.8% in 2023[42] Investment and Financing - The company has secured bank financing of RMB 233,000,000, with the entire amount available for withdrawal[9] - The company has committed capital obligations of RMB 1,007 thousand for the year 2024, compared to RMB 824 thousand in 2023, reflecting an increase in contractual commitments[27] - The net proceeds from the fundraising as of December 31, 2024, amounted to approximately RMB 52.058 million, with RMB 43.106 million already utilized[67] - The allocation of funds includes 70% for the establishment and construction of the Sci-Tech Innovation Park, 20% for further development of the third floor, and 10% for general working capital[67] - As of December 31, 2024, the unutilized balance of the net proceeds is approximately RMB 9.0 million, which is expected to be used for the further development of the third floor by December 2025[67] Corporate Governance - The board of directors has adopted the corporate governance code but has not separated the roles of Chairman and CEO, which is currently held by the same individual[71] - The company confirms compliance with the standard code for securities trading by all directors and supervisors for the fiscal year ending December 31, 2024[73] - The audit committee has reviewed the accounting principles and policies adopted by the group and discussed internal controls and financial reporting matters[82] Future Plans and Market Outlook - The group plans to expand its rental area and develop the second phase of the Sci-Tech Innovation Park while integrating logistics, property, and e-commerce services[47] - The group aims to enhance digital capabilities and explore AI and blockchain applications to improve transaction efficiency and transparency[47] - The industrial added value in China is projected to grow by 5.8% year-on-year in 2024, with the equipment manufacturing and high-tech manufacturing sectors showing significant growth rates of 7.7% and 8.9% respectively[28] - The company aims to leverage its "market + industry" advantages to support the transformation and rise of the tooling industry, amidst a competitive landscape of leading enterprises and differentiated competition from SMEs[30] Events and Announcements - The annual general meeting is scheduled for April 30, 2025[77] - The company will suspend share transfer registration from April 23, 2025, to April 30, 2025, to determine eligibility for attending the annual general meeting and voting[78] - The company will also suspend share transfer registration from May 8, 2025, to May 14, 2025, to determine eligibility for the final dividend distribution[79] - There are no significant events post-December 31, 2024, that would materially impact the company's operations and financial performance[74] - The audit firm KPMG has confirmed that the financial figures in the preliminary announcement for the year ending December 31, 2024, are consistent with the amounts in the consolidated financial statements[80] - The annual performance announcement will be published on the Hong Kong Stock Exchange and the company's website, with the annual report to be sent to shareholders upon request[81]

温嶺浙江工量刃具交易中心股份有限公司 Wenling Zhejiang Measuring and Cutting Tools Trading Centre Company Limited 《於中華人民共和國註冊成立的驗份有限公司》 股份代號：1379 ·僅供識別 目 錄 2 4 5 17 27 28 30 31 32 公司資料 財務摘要 管理層討論及分析 其他資料 綜合損益及其他全面收益表 綜合財務狀況表 綜合權益變動表 簡明綜合現金流量表 未經審核中期財務報告附註 公司資料 提名委員會 潘海鴻先生（主席） 許偉先生 金洪青先生 公司秘書 徐亦先生 授權代表 潘海鴻先生 徐亦先生 法人代表 潘海鴻先生 監事委員會 馮林軍先生（主席） 周珈申先生 謝輝輝先生 謝 豔 麗 女 士（於2024年5月10日辭任） 法律顧問 有關中國法律 六和律師事務所 有關香港法律 德 恒 律 師 事 務 所（香 港）有 限 法 律 責 任 合 夥 董 事 執行董事 潘海鴻先生（董事會主席及行政總裁） 徐 奕 先 生（於2024年5月10日獲委任） 周 桂 林 先 生（於2024年6月8日逝世） 非執行董事 王文明先生 程錦雲先生 ...

[Financial Highlights](index=1&type=section&id=%E8%B4%A2%E5%8A%A1%E6%91%98%E8%A6%81) The company experienced a significant decline in revenue and net profit for the period, despite a notable improvement in gross margin, with no interim dividend recommended [Key Financial Indicators](index=1&type=section&id=1.1%20%E5%85%B3%E9%94%AE%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) During the reporting period, the company's revenue and net profit significantly declined year-on-year, while gross margin notably improved 2024 Half-Year Key Financial Data Comparison | Indicator | As of June 30, 2024 (RMB thousands) | As of June 30, 2023 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 33,887 | 62,074 | -45.4% | | Gross Profit | 27,393 | 35,073 | -21.9% | | Gross Margin | 80.8% | 56.5% | +24.3pp | | Profit for the Period | 3,307 | 15,703 | -78.9% | | Net Profit Margin | 9.8% | 25.3% | -15.5pp | | Basic and Diluted Earnings Per Share | 0.04 | 0.20 | -80.0% | [Dividend Policy](index=1&type=section&id=1.2%20%E8%82%A1%E6%81%AF%E6%94%BF%E7%AD%96) The Board resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2024 - The Board does not recommend the payment of an interim dividend for the first half of 2024[1](index=1&type=chunk) [Consolidated Financial Statements](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9) This section presents the company's consolidated financial performance and position, detailing revenue, profit, assets, and liabilities [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) In the first half of 2024, the company's revenue decreased by 45.4% year-on-year to RMB 33,887 thousand, with profit for the period significantly down by 78.9% to RMB 3,307 thousand, primarily due to increased fair value loss on investment properties and reduced sales of completed properties Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Indicator | As of June 30, 2024 (RMB thousands) | As of June 30, 2023 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 33,887 | 62,074 | | Cost of Services | (6,494) | (27,001) | | Gross Profit | 27,393 | 35,073 | | Fair Value Loss on Investment Properties | (20,465) | (10,387) | | Other Net Income | 38 | 111 | | Selling and Marketing Expenses | (236) | (397) | | Administrative Expenses | (3,839) | (3,724) | | Operating Profit | 2,891 | 20,676 | | Share of Loss of an Associate | (67) | (397) | | Profit Before Tax | 2,824 | 20,279 | | Income Tax | 483 | (4,576) | | Profit for the Period | 3,307 | 15,703 | | Basic and Diluted Earnings Per Share (RMB yuan) | 0.04 | 0.20 | [Consolidated Statement of Financial Position](index=3&type=section&id=%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2024, the company's total non-current assets slightly decreased, net current liabilities expanded, and both net assets and total equity reduced Consolidated Statement of Financial Position (Summary) | Indicator | As of June 30, 2024 (RMB thousands) | As of December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | **Non-current Assets** | | | | Investment Properties | 1,011,200 | 1,031,600 | | Total Non-current Assets | 1,031,845 | 1,052,422 | | **Current Assets** | | | | Cash and Cash Equivalents | 44,024 | 74,437 | | Total Current Assets | 47,330 | 77,762 | | **Current Liabilities** | | | | Total Current Liabilities | 55,162 | 84,349 | | Net Current Liabilities | (7,832) | (6,587) | | **Non-current Liabilities** | | | | Total Non-current Liabilities | 233,967 | 240,696 | | **Equity** | | | | Net Assets | 790,046 | 801,367 | | Total Equity | 790,046 | 805,139 | [Notes to the Unaudited Interim Financial Results](index=5&type=section&id=%E6%9C%AA%E7%BB%8F%E5%AE%A1%E6%A0%B8%E4%B8%AD%E6%9C%9F%E8%B4%A2%E5%8A%A1%E4%B8%9A%E7%B8%BE%E9%99%84%E8%A8%BB) This section provides detailed explanations and disclosures regarding the interim financial performance and position [General Information and Basis of Preparation](index=5&type=section&id=1%20%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99) The company was incorporated in Wenling City, China in 2003 and listed on the Hong Kong Stock Exchange in 2020, with interim financial reports prepared under HKAS 34 assuming going concern despite net current liabilities - The company was incorporated on May 14, 2003, in Wenling City, Zhejiang Province, China, and completed its initial public offering and listing on the Main Board of the Hong Kong Stock Exchange on December 30, 2020[6](index=6&type=chunk) - Despite **net current liabilities of RMB 7,832,000** as of June 30, 2024, the interim financial report is prepared on a going concern basis, supported by **RMB 233,000,000** in unutilized bank facilities from third-party banks[7](index=7&type=chunk) [Changes in Accounting Policies](index=6&type=section&id=3%20%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%98%E5%8A%A8) New and revised HKFRSs, including amendments to HKAS 1 and HKFRS 16, were adopted during the period but had no significant impact on the financial statements - The Group has adopted several new and revised Hong Kong Financial Reporting Standards, including amendments related to liability classification, sale and leaseback, and supplier financing arrangements[8](index=8&type=chunk) - No significant reclassifications or material impacts on the financial statements were recognized following the adoption of these amendments[8](index=8&type=chunk) [Revenue Analysis](index=7&type=section&id=4%20%E6%94%B6%20%E7%9B%8A) Total revenue for the first half of 2024 significantly decreased by 45.4% year-on-year, primarily due to zero revenue from sales of completed properties, while property leasing revenue remained stable Revenue Classification | Revenue Source | As of June 30, 2024 (RMB thousands) | As of June 30, 2023 (RMB thousands) | | :--- | :--- | :--- | | Sales of Completed Properties | – | 28,195 | | Others (Property Management Services) | 1,644 | 1,414 | | Property Leasing | 32,243 | 32,465 | | **Total** | **33,887** | **62,074** | - In the first half of 2024, the company had **no revenue from sales of completed properties**, compared to **RMB 28,195 thousand** in the prior year, which is the primary reason for the decrease in total revenue[10](index=10&type=chunk) - Property leasing revenue remained stable, at **RMB 32,243 thousand** in the first half of 2024 and **RMB 32,465 thousand** in the first half of 2023[10](index=10&type=chunk) [Other Net Income and Profit Before Tax](index=8&type=section&id=5%20%E5%85%B6%E4%BB%96%E5%87%80%E6%94%B6%E5%85%A5) Other net income decreased year-on-year in the first half of 2024, and profit before tax significantly declined, mainly due to an increased fair value loss on investment properties Other Net Income and Depreciation & Amortization | Indicator | As of June 30, 2024 (RMB thousands) | As of June 30, 2023 (RMB thousands) | | :--- | :--- | :--- | | Interest income from bank deposits | 69 | 115 | | Government grants | – | 100 | | Net exchange loss | (87) | (104) | | Total Other Net Income | 38 | 111 | | Depreciation and Amortization | 274 | 168 | - **Profit before tax** decreased from **RMB 20,279 thousand** in the first half of 2023 to **RMB 2,824 thousand** in the first half of 2024[2](index=2&type=chunk) [Income Tax](index=9&type=section&id=7%20%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8%E4%B8%AD%E7%9A%84%E6%89%80%E5%BE%97%E7%A8%8E) Income tax shifted from an expense to a credit in the first half of 2024, primarily due to reduced current income tax, increased deferred tax, and taxable profit offset by over-provision from prior years Income Tax Components | Tax Type | As of June 30, 2024 (RMB thousands) | As of June 30, 2023 (RMB thousands) | | :--- | :--- | :--- | | Current tax - PRC Enterprise Income Tax | 4,899 | 7,341 | | Current tax - Over-provision in prior years | (1,478) | (1,248) | | Current tax - PRC Land Appreciation Tax | 383 | 1,006 | | Deferred tax - PRC Enterprise Income Tax | (4,191) | (2,412) | | Deferred tax - PRC Land Appreciation Tax | (96) | (111) | | **Actual Tax (Credit)/Expense** | **(483)** | **4,576** | - The effective tax rate shifted from an expense of approximately **22.6%** in the first half of 2023 to a credit of approximately **17.1%** in the first half of 2024[43](index=43&type=chunk) [Earnings Per Share](index=10&type=section&id=8%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) Basic and diluted earnings per share significantly decreased year-on-year in the first half of 2024, consistent with the change in profit for the period Earnings Per Share | Indicator | As of June 30, 2024 (RMB yuan) | As of June 30, 2023 (RMB yuan) | | :--- | :--- | :--- | | Basic and Diluted Earnings Per Share | 0.04 | 0.20 | - Profit attributable to ordinary equity holders of the parent decreased from **RMB 15,703 thousand** in the first half of 2023 to **RMB 3,307 thousand** in the first half of 2024[18](index=18&type=chunk) [Investment Properties and Interests in an Associate](index=10&type=section&id=9%20%E6%8A%95%E8%B5%84%E7%89%A9%E4%B8%9A) Fair value loss on investment properties nearly doubled year-on-year, while loss from an associate decreased - Fair value loss on investment properties increased from **RMB 10,387 thousand** in the first half of 2023 to **RMB 20,465 thousand** in the first half of 2024[20](index=20&type=chunk) - Share of loss of an associate decreased from **RMB 397 thousand** in the first half of 2023 to **RMB 67 thousand** in the first half of 2024[21](index=21&type=chunk) [Dividends](index=10&type=section&id=11%20%E8%82%A1%20%E6%81%AF) The Board does not recommend an interim dividend for the first half of 2024, but final dividends for prior financial years have been approved and paid - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2024[22](index=22&type=chunk) Approved and Paid Dividends for Prior Financial Years | Dividend Type | As of June 30, 2024 (RMB thousands) | As of June 30, 2023 (RMB thousands) | | :--- | :--- | :--- | | Final dividend for prior financial year (per share) | RMB 0.23 (18,400) | RMB 0.20 (16,000) | [Receivables, Payables and Contract Liabilities](index=11&type=section&id=12%20%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9%E5%8F%8A%E9%A2%84%E4%BB%98%E6%AC%BE%E9%A1%B9) Other receivables and prepayments, other payables and accrued expenses, and contract liabilities all decreased Receivables, Payables and Contract Liabilities | Indicator | As of June 30, 2024 (RMB thousands) | As of December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Other Receivables and Prepayments | 1,062 | 1,495 | | Other Payables and Accrued Expenses | 16,233 | 18,970 | | Contract Liabilities (Property Services) | 611 | 1,472 | - The decrease in contract liabilities during the period was primarily due to revenue recognized from contract liabilities at the beginning of the period[26](index=26&type=chunk) [Capital Commitments](index=12&type=section&id=15%20%E6%89%BF%20%E6%93%94) As of June 30, 2024, the Group's capital commitments primarily relate to contracted investment properties Capital Commitments | Capital Commitment Type | As of June 30, 2024 (RMB thousands) | As of December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Contracted | 752 | – | | Authorized but not Contracted | – | 824 | | **Total** | **752** | **824** | [Management Discussion and Analysis](index=13&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides an overview of the industry, business operations, and financial performance, along with future outlook and strategies [Industry Overview](index=13&type=section&id=%E8%A1%8C%E4%B8%9A%E6%A6%82%E8%A7%88) In the first half of 2024, China's economy generally recovered, and the machinery industry operated stably, but the tools and cutting tools industry continued to decline due to rising raw material prices and weak overall demand, with significant potential in the high-end CNC cutting tools market and expected industry consolidation - In the first half of 2024, China's GDP grew by **5.0%**, industrial value added above designated size increased by **6.0%** year-on-year, and the machinery industry's value added increased by **6.1%** year-on-year[27](index=27&type=chunk) - The tools and cutting tools industry continued its downturn due to rising raw material prices and weak overall demand, with merchants holding pessimistic expectations for future revenue[27](index=27&type=chunk) - The high-end CNC cutting tools market has immense future growth potential, and enterprises with brand, capital, and technological advantages are expected to gain more market share[27](index=27&type=chunk) [Business Review](index=14&type=section&id=%E4%B8%9A%E5%8A%A1%E5%9B%9E%E9%A1%BE) As a prominent operator of a tools and cutting tools trading center in China, the Group's revenue and profit for the period significantly decreased in the first half of the year, mainly due to the absence of property sales income and increased fair value loss on investment properties, while continuing to operate the trading center and Sci-Tech Innovation Park, and expanding industrial innovation services and cross-border e-commerce platforms - The Group's primary business activities and revenue sources are derived from property leasing operations of the trading center and Sci-Tech Innovation Park, and the sale of certain Sci-Tech Innovation Park units[28](index=28&type=chunk) - Revenue and profit for the period in the first half of 2024 decreased by approximately **45.4%** and **78.9%** respectively, mainly due to the absence of property sales income and an increased fair value loss on investment properties[28](index=28&type=chunk) [Trading Center](index=14&type=section&id=%E4%BA%A4%E6%98%93%E4%B8%AD%E5%BF%83) The trading center maintained a high occupancy rate and stable average monthly actual rent in the first half of the year, also receiving several industry honors - The trading center has a total gross floor area of approximately **74,204.7 square meters**, with land use rights extending to November 15, 2046[29](index=29&type=chunk) - In the first half of 2024, the trading center received honors such as "National Intellectual Property Protection Standardization Market Cultivation Object"[30](index=30&type=chunk) - As of June 30, 2024, the trading center had **626 tenants**, with an occupancy rate of **98.64%** for leasable area[30](index=30&type=chunk)[31](index=31&type=chunk) Trading Center Average Monthly Actual Rent | Floor | As of June 30, 2024 Average Monthly Actual Rent (RMB yuan/sqm) | As of June 30, 2023 Average Monthly Actual Rent (RMB yuan/sqm) | | :--- | :--- | :--- | | First Floor | 373.4 | 372.2 | | Second Floor | 193.6 | 193.4 | | Third Floor | 65.0 | 72.3 | | Basement | 17.1 | 17.1 | [Sci-Tech Innovation Park](index=16&type=section&id=%E7%A7%91%E5%88%9B%E5%9B%AD) The Sci-Tech Innovation Park, operational since October 2022, aims to provide factory premises for tools and cutting tools manufacturing and production, showing an improved occupancy rate in the first half of the year despite a slight decrease in the number of resident enterprises - The Sci-Tech Innovation Park has a gross floor area of approximately **116,000 square meters**, with land use rights extending to January 27, 2069, primarily for tools and cutting tools manufacturing[32](index=32&type=chunk) - As of June 30, 2024, the Sci-Tech Innovation Park attracted **13 enterprises**, with an occupancy rate of **68.3%** for leasable area, an increase from **64.8%** at the end of 2023[32](index=32&type=chunk)[34](index=34&type=chunk) Sci-Tech Innovation Park Average Monthly Actual Rent | Area | As of June 30, 2024 Average Monthly Actual Rent (RMB yuan/sqm) | As of June 30, 2023 Average Monthly Actual Rent (RMB yuan/sqm) | | :--- | :--- | :--- | | Factory | 15.5 | 15.5 | | Dormitory | 21.5 | 23.6 | | Basement | 20.9 | 20.9 | [Industrial Innovation Service Complex](index=17&type=section&id=%E5%B7%A5%E9%87%8F%E5%88%83%E5%85%B7%E4%BA%A7%E4%B8%9A%E5%88%9B%E6%96%B0%E6%9C%8D%E5%8A%A1%E7%BB%BC%E5%90%88%E4%BD%93) The Group established an R&D-centric Industrial Innovation Service Complex, offering a one-stop service platform and actively engaging in scientific research collaborations - The complex provides one-stop services including coating new material R&D, achievement commercialization, startup incubation, talent cultivation, and technological transformation[35](index=35&type=chunk) - A cutting tool quality inspection center has been established, gathering **16 scientific and technological innovation service institutions** to offer intellectual property, brand building, and financial services[35](index=35&type=chunk) - Active collaborations with domestic and international universities and research institutes aim to jointly establish advanced coating technology joint laboratories to overcome key common technical challenges[35](index=35&type=chunk) [E-commerce Platform](index=17&type=section&id=%E7%94%B5%E5%95%86%E5%B9%B3%E5%8F%B0) The Group launched a cross-border e-commerce export project for the tools and cutting tools industrial cluster, promoting through independent websites and Alibaba International Station, achieving initial results - The cross-border e-commerce export project was launched in June 2023, establishing independent websites and Alibaba International Station, conducting Google ad campaigns and SEO optimization[36](index=36&type=chunk) - The independent website achieved **16.5061 million impressions**, **133,300 clicks**, generated **over 300 inquiries**, and conducted **6 cross-border training sessions**, cultivating **50 talents**[37](index=37&type=chunk) [Financial Review](index=18&type=section&id=%E8%B4%A2%E5%8A%A1%E5%9B%9E%E9%A1%BE) The company's financial performance significantly declined in the first half of 2024, with substantial reductions in revenue and profit for the period, primarily due to the absence of property sales revenue and increased fair value loss on investment properties [Revenue](index=18&type=section&id=%E6%94%B6%E7%9B%8A) Total revenue decreased by 45.4% year-on-year to RMB 33.9 million, mainly due to no sales revenue from completed properties in the current period - Total revenue decreased from **RMB 62.1 million** in the first half of 2023 to **RMB 33.9 million** in the first half of 2024, a **45.4%** decline[38](index=38&type=chunk) - Sales of completed properties revenue was **zero** in the first half of 2024, compared to **RMB 28.2 million** in the first half of 2023[38](index=38&type=chunk) - Property leasing revenue remained stable, at **RMB 32.5 million** (2023) and **RMB 32.2 million** (2024) respectively[38](index=38&type=chunk) [Cost of Sales](index=18&type=section&id=%E9%94%80%E5%94%AE%E6%88%90%E6%9C%AC) Cost of sales significantly decreased by 75.9% year-on-year, primarily due to the absence of cost of sales for completed properties in the current period - Cost of sales decreased from **RMB 27.0 million** in the first half of 2023 to **RMB 6.5 million** in the first half of 2024, a **75.9%** decline[39](index=39&type=chunk) - There was **no cost of sales for completed properties** in the first half of 2024, compared to **RMB 21.0 million** in the first half of 2023[39](index=39&type=chunk) [Gross Profit and Gross Margin](index=18&type=section&id=%E6%AF%9B%E5%88%A9%E5%8F%8A%E6%AF%9B%E5%88%A9%E7%8E%87) Gross profit decreased by 21.9% year-on-year, but gross margin significantly improved to 80.8% due to the absence of property sales revenue - Gross profit decreased from **RMB 35.1 million** in the first half of 2023 to **RMB 27.4 million** in the first half of 2024, a **21.9%** decline[40](index=40&type=chunk) - Gross margin increased from **56.5%** in the first half of 2023 to **80.8%** in the first half of 2024, primarily because the gross margin from sales of completed properties is lower than that of the leasing business[40](index=40&type=chunk) [Fair Value Loss on Investment Properties](index=18&type=section&id=%E6%8A%95%E8%B5%84%E7%89%A9%E4%B8%9A%E4%BC%B0%E5%80%BC%E4%BA%8F%E6%8D%9F) Fair value loss on investment properties nearly doubled year-on-year, mainly due to reduced market rents and a shorter land use right term - Fair value loss on investment properties increased from **RMB 10.4 million** in the first half of 2023 to **RMB 20.5 million** in the first half of 2024, an increase of approximately **RMB 10.1 million**[41](index=41&type=chunk) - The increased loss was primarily due to reduced comparable market rents and a shorter land use right term[41](index=41&type=chunk) [Administrative Expenses](index=19&type=section&id=%E8%A1%8C%E6%94%BF%E5%BC%80%E6%94%AF) Administrative expenses remained stable - Administrative expenses remained stable at approximately **RMB 3.7 million** in the first half of 2023 and **RMB 3.8 million** in the first half of 2024[42](index=42&type=chunk) [Income Tax Expense](index=19&type=section&id=%E6%89%80%E5%BE%97%E7%A8%8E%E5%BC%80%E6%94%AF) Income tax shifted from an expense to a credit, with a significant decrease in the effective tax rate - Income tax expense shifted from an expense of **RMB 4.6 million** in the first half of 2023 to a credit of **RMB 0.5 million** in the first half of 2024[43](index=43&type=chunk) - The effective tax rate shifted from **22.6%** to a **17.1%** credit, mainly because taxable profit was offset by over-provision from prior years[43](index=43&type=chunk) [Profit for the Period and Net Profit Margin](index=19&type=section&id=%E6%9C%9F%E5%86%85%E6%BA%A2%E5%88%A9%E5%8F%8A%E7%BA%AF%E5%88%A9%E7%8E%87) Profit for the period significantly decreased by 78.9% year-on-year, and net profit margin declined, primarily due to an increased fair value loss on investment properties - Profit for the period decreased from **RMB 15.7 million** in the first half of 2023 to **RMB 3.3 million** in the first half of 2024, a **78.9%** decline[44](index=44&type=chunk) - Net profit margin decreased from **25.3%** to **9.8%**, primarily due to an increased fair value loss on investment properties, partially offset by an increased gross margin[44](index=44&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=19&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E3%80%81%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E8%B3%87%E6%9C%AC%E7%B5%90%E6%A7%8B) Cash and cash equivalents decreased, primarily due to income tax and dividend payments - Cash and cash equivalents decreased from **RMB 74.4 million** at the end of 2023 to **RMB 44.0 million** as of June 30, 2024[45](index=45&type=chunk) - The decrease in cash was mainly due to income tax and dividend payments, amounting to **RMB 8.1 million** and **RMB 18.5 million** respectively[45](index=45&type=chunk) [Financing and Treasury Policies](index=19&type=section&id=%E8%9E%8D%E8%B3%87%E5%8F%8A%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group will continue to rely on operating cash flow and other financing methods to meet working capital needs and support business expansion - The Group will continue to rely on cash flows generated from operations and other debt and equity financing to fund working capital requirements and business expansion[46](index=46&type=chunk) [Foreign Exchange Risk](index=20&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) The Group has low foreign exchange risk and does not use financial instruments for hedging - The Group's transactions and most assets and liabilities are denominated in RMB, resulting in low foreign exchange risk, and no hedging instruments are used[47](index=47&type=chunk) [Bank Loans and Pledged Assets](index=20&type=section&id=%E9%8A%80%E8%A1%8C%E8%B2%B8%E6%AC%BE%E5%8F%8A%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of the end of the reporting period, the Group had no bank loans, but RMB 233 million in bank facilities were secured by investment properties - As of June 30, 2024, the Group had **no bank loans**[48](index=48&type=chunk) - **RMB 233 million** in bank facilities are secured by investment properties valued at approximately **RMB 829.2 million**[48](index=48&type=chunk) [Capital Expenditure](index=20&type=section&id=%E8%B3%87%E6%9C%AC%E9%96%8B%E6%94%AF) Capital expenditure significantly decreased, primarily due to the completion of construction and renovation works for the Sci-Tech Innovation Park - Capital expenditure decreased from **RMB 20.8 million** in the first half of 2023 to **RMB 0.6 million** in the first half of 2024[49](index=49&type=chunk) - The decrease was mainly due to the completion of construction and renovation works for the Sci-Tech Innovation Park in 2023[49](index=49&type=chunk) [Contingent Liabilities](index=20&type=section&id=%E6%88%96%E7%84%B6%E8%B2%A0%E5%82%B5) The Group's contingent liabilities for mortgage loan guarantees provided to customers decreased, with directors deeming the likelihood of default to be remote - Contingent liabilities for mortgage loan guarantees provided to customers decreased from **RMB 103.4 million** at the end of 2023 to **RMB 97.5 million** as of June 30, 2024[51](index=51&type=chunk) - The directors consider the likelihood of default under these financial guarantee contracts to be remote[51](index=51&type=chunk) [Significant Investments, Acquisitions and Disposals](index=21&type=section&id=%E6%8C%81%E6%9C%89%E7%9A%84%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E4%BB%A5%E5%8F%8A%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE) There were no significant investment, acquisition, or disposal activities during the reporting period - For the six months ended June 30, 2024, the Group held **no significant investments** and undertook **no significant acquisitions or disposals** of subsidiaries, associates, and joint ventures[52](index=52&type=chunk) [Employees and Remuneration Policy](index=21&type=section&id=%E5%93%A1%E5%B7%A5%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) The number of employees slightly decreased, while total staff costs increased year-on-year, with the company emphasizing employee training and incentives - As of June 30, 2024, the Group had **38 employees**, a slight decrease from **39 employees** at the end of 2023[54](index=54&type=chunk) - Total staff costs increased from **RMB 2.1 million** in the first half of 2023 to **RMB 2.2 million** in the first half of 2024, an increase of approximately **6.5%**[54](index=54&type=chunk) - The company incentivizes employees through training, annual reviews, salaries, performance bonuses, and special awards[54](index=54&type=chunk) [Use of Proceeds from Global Offering](index=21&type=section&id=%E5%85%A8%E7%90%83%E7%99%BC%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%9A%84%E7%94%A8%E9%80%94) The net proceeds from the global offering have largely been utilized for the construction of the Sci-Tech Innovation Park and general working capital, with the remaining funds allocated for further development of the third floor - The net proceeds from the global offering were approximately **RMB 52.1 million**, with approximately **RMB 42.3 million** utilized as of June 30, 2024[55](index=55&type=chunk) Use of Proceeds from Global Offering and Remaining Balance | Purpose | Budgeted Amount in Prospectus (RMB thousands) | Actual Use as of June 30, 2024 (RMB thousands) | Remaining Balance as of June 30, 2024 (RMB thousands) | Expected Timeline for Remaining Balance | | :--- | :--- | :--- | :--- | :--- | | Establishment and construction of Sci-Tech Innovation Park | 36,441 | 36,441 | – | – | | Funding further development of the third floor | 10,412 | 700 | 9,712 | December 2024 | | General working capital and other general corporate purposes | 5,205 | 5,205 | – | – | | **Total** | **52,058** | **42,346** | **9,712** | | - The remaining approximately **RMB 9.7 million** will be used for the renovation and refurbishment of the third floor, expected to be utilized by December 2024[56](index=56&type=chunk) [Other Information](index=22&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) This section covers additional disclosures including interim dividends, securities transactions, competing interests, corporate governance, and post-reporting period events [Interim Dividend](index=22&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[57](index=57&type=chunk) [Purchase, Sale or Redemption of Listed Securities](index=23&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the reporting period, neither the company nor its subsidiaries engaged in any purchase, sale, or redemption of listed securities - For the six months ended June 30, 2024, and up to the date of this announcement, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities[58](index=58&type=chunk) [Competing Interests of Directors and Supervisors](index=23&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E7%9B%A3%E4%BA%8B%E7%9A%84%E7%AB%B6%E4%BA%89%E6%AC%8A%E7%9B%8A) None of the controlling shareholders, directors, supervisors, or their close associates have any interests that compete with the Group's business - None of the controlling shareholders, directors, supervisors, or their close associates have any interests in any business that directly or indirectly competes or may compete with the Group's business[59](index=59&type=chunk) [Compliance with Corporate Governance Code](index=23&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E4%B8%9A%E7%AE%A1%E7%90%86%E5%AE%88%E5%89%87) The company is committed to maintaining high standards of corporate governance and complies with the Corporate Governance Code, although the roles of Chairman and Chief Executive Officer are combined, which the Board deems effective for now - The company has adopted and strictly complied with the code provisions of the Corporate Governance Code, but the roles of Chairman and Chief Executive Officer are combined and held by Mr. Pan Haihong[60](index=60&type=chunk)[61](index=61&type=chunk) - The Board believes that combining these roles contributes to leadership consistency and strategic planning efficiency, and currently does not impair the balance of power[60](index=60&type=chunk) [Events After Reporting Period](index=24&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No major events after the reporting period have significantly impacted the operations and financial performance - As of the date of this announcement, there have been no major events after June 30, 2024, that have significantly impacted the Group's operations and financial performance[63](index=63&type=chunk) [Review and Publication](index=24&type=section&id=%E5%88%8A%E7%99%BC2024%E5%B9%B4%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) The interim results announcement has been reviewed by the Audit Committee and will be published on the HKEX and company websites - The company's Audit Committee has reviewed the Group's interim results for the six months ended June 30, 2024[65](index=65&type=chunk) - The interim results announcement will be published on the HKEX website (www.hkexnews.hk) and the company's website (http://www.cnglj.com)[64](index=64&type=chunk)

Financial Performance - For the year ended December 31, 2023, the company reported revenue of RMB 96.802 million, a decrease of approximately 58.0% compared to RMB 230.860 million in 2022[6]. - The gross profit for 2023 was RMB 63.747 million, resulting in a gross margin of 65.9%, up from 38.7% in 2022[6]. - The net profit for the year was RMB 27.210 million, with a net profit margin of 28.1%, compared to 24.9% in the previous year[6]. - Total revenue decreased by approximately 58.1% from about RMB 230.9 million in the year ended December 31, 2022, to about RMB 96.8 million in the year ended December 31, 2023, primarily due to a significant drop in property sales[64]. - Gross profit decreased by approximately 28.6% from about RMB 89.2 million in 2022 to about RMB 63.7 million in 2023, while gross margin improved from approximately 38.7% to 65.9%[66]. - The group's profit for the year decreased by approximately 52.7% from about RMB 57.5 million for the year ended December 31, 2022, to about RMB 27.2 million for the year ended December 31, 2023, while the net profit margin increased from approximately 24.9% to about 28.1%[72]. Rental and Property Management - The rental income and other income for the company reached RMB 65.0 million and RMB 3.6 million respectively, representing year-on-year growth of approximately 14.6% and 23.7%[10]. - As of December 31, 2023, the rental rate of the Zhejiang Wenzhou Tool Trading Center was approximately 98.1%, slightly up from 97.5% in the previous year[10]. - The average monthly rental income per square meter for the first floor was RMB 372.9, slightly up from RMB 372.2 in 2022, while the second floor saw a minor increase from RMB 193.4 to RMB 193.6[51]. - As of December 31, 2023, the total area of the trading center was approximately 74,204.7 square meters, with a rental occupancy rate of 98.11%, up from 97.51% in the previous year[51]. - Property rental income increased by approximately RMB 8.3 million to about RMB 65.0 million in the year ended December 31, 2023, offsetting some of the revenue decline[64]. - The average monthly actual rent for factories increased from RMB 12.2 per square meter in 2022 to RMB 15.5 per square meter in 2023, while the average monthly actual rent for dormitories rose from RMB 28.2 to RMB 34.9[55]. - The rental area of the Science and Technology Innovation Park increased significantly, with the leased area reaching 37,877.82 square meters and a leasing percentage of 64.8% as of December 31, 2023, compared to 8,108.5 square meters and 13.9% in 2022[55]. Market and Industry Outlook - The manufacturing sector in China showed signs of recovery, with the PMI rising to 50.1 in January 2023, indicating improved economic conditions[11]. - The company anticipates continued growth in demand and prices for cutting tools driven by the recovery in manufacturing and consumption levels in 2024[11]. - The Chinese manufacturing industry is facing challenges due to global market fluctuations, but the digital market is expected to maintain rapid growth[14]. - The company plans to develop high-end manufacturing and enhance its overall capabilities, supported by national policies[14]. - The main business focuses on the tool and die market and industrial park operations, with plans to expand leasing services and integrated professional services[14]. - The first phase of the Science and Technology Innovation Park has reached scale, and the second phase is planned due to the booming tool and die industry[14]. Corporate Governance and Shareholder Information - The company has adopted a dividend policy aimed at allowing shareholders to share in profits while retaining sufficient reserves for future development[101]. - The final dividend payment is expected to be made to domestic shareholders on May 27, 2024, and to H-share holders on June 11, 2024[100]. - The company does not have a fixed dividend payout ratio, and the declaration and payment of dividends will be decided at the board's discretion based on various factors[102]. - The company has established a non-competition agreement with various parties, confirming compliance with the terms of the agreement[161]. - The company has three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee various aspects of the company's affairs[172]. - The company has appointed three independent non-executive directors, representing one-third of the board, ensuring compliance with listing rules[182]. - The board is responsible for reviewing and monitoring the company's corporate governance and compliance policies, as well as the training and professional development of directors[177]. - The company is committed to maintaining high standards of corporate governance and protecting shareholder interests[171]. Risks and Challenges - The group faces various risks, including those related to property leasing, industry-specific risks, and operational risks in China, which could impact profitability and market competitiveness[91]. - The company's operations and performance are significantly influenced by the cyclical nature of the real estate industry in China, which may adversely affect business results[92]. - The ability to expand operations in Zhejiang Province is contingent upon various uncontrollable factors, including macroeconomic conditions and credit supply from lending institutions[95]. - The group reported contingent liabilities of approximately RMB 103.4 million related to bank guarantees as of December 31, 2023, up from RMB 101.3 million in 2022[80]. Capital and Financial Position - The company maintained a net asset value of RMB 805.139 million, with a capital debt ratio of 0.0%[6][7]. - As of December 31, 2023, the group's cash and cash equivalents were approximately RMB 74.4 million, an increase from RMB 72.8 million as of December 31, 2022, primarily due to property sales[73]. - Capital expenditures for the year ended December 31, 2023, were approximately RMB 24.3 million, down from RMB 29.4 million in 2022, mainly related to the renovation of the Sci-Tech Park[78]. - The group had no bank loans or available bank financing as of December 31, 2023[76][77]. - The group received bank financing of RMB 233,000,000, effective from January 18, 2024, with a term until January 18, 2034, secured against completed investment properties valued at RMB 845,700,000 as of December 31, 2023[163]. Employee and Management Information - Employee costs totaled approximately RMB 4.5 million for the year ended December 31, 2023, an increase of about 29.3% from RMB 3.5 million in 2022, primarily due to hiring new staff for the Sci-Tech Park[82]. - The total remuneration for directors and supervisors in 2023 was approximately RMB 235,000, which includes salaries, bonuses, and other benefits[120]. - Each director has entered into service contracts with an initial term of three years, automatically renewing unless terminated with three months' notice[173]. Audit and Compliance - The company’s auditor, KPMG, has reviewed the consolidated financial statements for the year ending December 31, 2023[164]. - The Audit Committee has reviewed the consolidated financial statements for the year ending December 31, 2023, and the interim results for the six months ending June 30, 2023[189]. - The company has complied with applicable laws and regulations without any significant violations affecting its business operations as of December 31, 2023[106].

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 96,802,000, a decrease of 58.1% compared to RMB 230,860,000 in 2022[2] - Gross profit for the same period was RMB 63,747,000, down 28.6% from RMB 88,234,000, with a gross margin of 65.9%, up from 38.7%[2] - Net profit for the year was RMB 27,210,000, a decline of 52.7% from RMB 57,509,000, resulting in a net profit margin of 28.1%, compared to 24.9% in the previous year[2] - Basic and diluted earnings per share were RMB 0.34, down 52.8% from RMB 0.72 in 2022[2] - Total revenue for 2023 was RMB 96,802,000, a significant decrease of 58.0% compared to RMB 230,860,000 in 2022[21] - Revenue from sales of completed properties was RMB 28,195,000, down 83.5% from RMB 171,239,000 in the previous year[21] - The company's profit before tax for 2023 was RMB 34,493,000, a decrease of 56.2% compared to RMB 78,980,000 in 2022[32] - Net profit for the year decreased by approximately 52.7% from about RMB 57.5 million in the year ended December 31, 2022, to about RMB 27.2 million in the year ended December 31, 2023, while net profit margin increased from approximately 24.9% to 28.1%[75] Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.23 per share for the year ended December 31, 2023, compared to RMB 0.20 per share in 2022[2] - The proposed final dividend per ordinary share increased to RMB 0.23 in 2023 from RMB 0.20 in 2022, representing a growth of 15%[33] - The board proposed a final dividend of RMB 18.4 million per share (before tax) to shareholders[98] - The company will distribute the final dividend to domestic shareholders in RMB and to overseas shareholders in HKD, with the payment expected on May 27, 2024, for domestic shareholders and June 11, 2024, for H-share holders[98] Assets and Liabilities - Total assets less current liabilities as of December 31, 2023, were RMB 1,045,835,000, slightly up from RMB 1,042,524,000 in 2022[5] - Non-current liabilities decreased to RMB 240,696,000 in 2023 from RMB 248,595,000 in 2022[6] - Cash and cash equivalents increased to RMB 74,437,000 in 2023 from RMB 72,826,000 in 2022[5] - The group had no bank loans as of December 31, 2023, and no available bank financing[79][80] - The group has a contingent liability of approximately RMB 103.4 million related to bank guarantees as of December 31, 2023, compared to RMB 101.3 million in 2022[83] Operational Highlights - The company reported a loss from investment properties of RMB 20,867,000 in 2023, compared to a gain of RMB 1,706,000 in 2022[4] - One property development client accounted for approximately 29.13% of total revenue, with the group having only one major client compared to three in 2022[22] - Rental income increased to RMB 64,975,000, up 14.0% from RMB 56,686,000 in 2022[21] - The trading center had an occupancy rate of 98.11% as of December 31, 2023, compared to 97.51% in the previous year[53] - The average monthly rent per square meter for the first floor was RMB 372.9 in 2023, slightly up from RMB 372.2 in 2022[51] - The average monthly rent per square meter for factory space in the Sci-Tech Park increased to RMB 15.5 in 2023 from RMB 12.2 in 2022[58] Future Plans and Strategies - The group plans to build the second phase of the Sci-Tech Park to enhance its position as a comprehensive service provider in the tool industry, aiming for rental income and increased service revenue over the next two to three years[61] - The group intends to expand its service offerings by integrating existing resources and providing systematic value-added services to enterprises in the park[62] - The group plans to engage in mergers and acquisitions within the tool industry to diversify its profit structure and transform into a comprehensive service provider for manufacturing and research[64] - The group launched a cross-border e-commerce project in June 2023, aiming to establish a brand for the tool industry and enhance its market presence[59] Accounting and Compliance - The group did not apply any new accounting standards or interpretations that were not yet effective during the reporting period[14] - The impact of new accounting standards on the financial statements was assessed, with no significant effects identified[16] - The audit committee reviewed the accounting principles and policies adopted by the group, discussing internal controls and financial reporting matters[108] - The company’s financial statements for the year ended December 31, 2023, were consistent with the preliminary announcement figures[105] - The company confirmed compliance with the securities trading code for directors and supervisors as of the announcement date[95] Economic Context - The gross domestic product (GDP) of China grew by 5.2% in 2023, accelerating by 2.2 percentage points compared to 2022[41] - The manufacturing value added in China increased by 4.4% year-on-year in 2023, indicating a positive trend in the manufacturing sector[41] - In 2023, China's tool exports reached RMB 23.365 billion, showing a growth trend, while imports decreased, leading to a significant trade surplus[44]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 62,074,000, an increase of 114.2% compared to RMB 28,973,000 in the same period of 2022[6] - Gross profit for the same period was RMB 35,073,000, with a gross margin of 56.5%, down from 84.2% in 2022[6] - Net profit for the six months was RMB 15,703,000, representing a net profit margin of 25.3%, compared to 45.5% in the previous year[6] - Operating profit increased to RMB 20,676,000, up 27.5% from RMB 16,246,000 in the previous year[86] - Basic earnings per share for the six months ended June 30, 2023, was RMB 0.20, compared to RMB 0.16 for the same period in 2022[86] - The company reported a profit of RMB 15,703,000 for the six months ended June 30, 2023, compared to a profit of RMB 13,179,000 for the same period in 2022, indicating an increase of approximately 19.0%[92] - The company's profit before tax for the six months ended June 30, 2023, was RMB 20,279,000, an increase of 24.9% compared to RMB 16,230,000 for the same period in 2022[120] Revenue Sources - The company confirmed property sales from the Science and Innovation Park, contributing to the increase in revenue and profit[12] - Revenue from sales of completed properties amounted to RMB 28,195,000, while property leasing revenue was RMB 32,465,000, up from RMB 27,986,000 in 2022[108] - Rental income from the Sci-Tech Park increased to RMB 4.2 million for the six months ended June 30, 2023, compared to zero in the same period of 2022[26] - One property development client contributed approximately 45% of the total revenue for the group, a significant increase compared to no contribution in the same period of 2022[110] Expenses and Liabilities - Administrative expenses decreased by approximately 50.1% to about RMB 3.7 million for the six months ended June 30, 2023[33] - The total liabilities decreased from RMB 127,414,000 to RMB 61,772,000, indicating improved financial stability[87] - The actual tax expense for the six months ended June 30, 2023, was RMB 4,576,000, up from RMB 3,051,000 in the same period of 2022, reflecting a year-on-year increase of 50.0%[120] - The company paid dividends of RMB 16,104,000 during the first half of 2023, compared to RMB 25,708,000 in the same period of 2022, indicating a reduction of approximately 37.3%[94] Assets and Cash Flow - Cash and cash equivalents decreased from approximately RMB 72.8 million as of December 31, 2022, to RMB 37.9 million as of June 30, 2023[37] - Current assets decreased to RMB 40,004,000 from RMB 102,097,000 at the end of 2022, primarily due to a reduction in cash and cash equivalents[87] - The company's cash and cash equivalents as of June 30, 2023, totaled RMB 37,944,000, a decrease of 48.0% from RMB 72,826,000 as of December 31, 2022[132] - The cash generated from operating activities for the six months ended June 30, 2023, was RMB 1,897,000, a significant decrease from RMB 56,906,000 in the same period of 2022, reflecting a decline of about 96.67%[94] Corporate Governance - The company adheres strictly to corporate governance codes and has implemented effective accountability measures[60] - The board consists of two executive directors, four non-executive directors, and three independent non-executive directors, ensuring a diverse governance structure[60] - The company will review its corporate governance policies and compliance with governance codes annually[60] - The group is committed to maintaining high standards of corporate governance to protect shareholder interests[60] Market and Future Plans - The industrial value-added in China grew by 3.8% year-on-year in the first half of 2023, supporting demand for measuring and cutting tools[8] - The group plans to continue expanding its upstream and downstream services, including the development of a smart area property management system[55] - The group aims to seek investment cooperation opportunities to expand its business scope in the future[55] - The group is focused on leveraging opportunities in the overseas market through its digital trade initiatives[56] Shareholder Information - As of June 30, 2023, major shareholders hold approximately 58,200,000 shares, representing 97.00% of the relevant class of shares and 72.75% of the total share capital[64] - 温嶺市博濤投資有限公司持有公司97.00%的股份，代表72.75%的总股本[71] - 嘉興元泰股權投資合夥企業持有29.90%的股份，代表7.48%的总股本[74] - 浙江錢江摩托股份有限公司持有16.38%的股份，代表4.09%的总股本[74]