Group 1: Industry Developments - BYD and ByteDance are collaborating to establish an "AI + High-Throughput Joint Laboratory" to tackle key technical issues in power batteries such as fast charging, lifespan, and safety [1] - JinJing New Energy and EVE Energy have launched a global lithium battery recycling network platform to enhance the effective recovery and reuse of retired battery materials [3] - The green energy storage intelligent manufacturing project by Feimaotai has commenced in Tianjin, with an annual production capacity of 96GWh planned [5] Group 2: Technological Advancements - Envision AESC has received the Witness Laboratory Qualification Certificate from TÜV Rheinland, enabling independent testing according to international safety standards [7] - Formosa Plastics Group has initiated trial production of solid-state batteries, aiming for mass production by 2027 and focusing on applications in small electric vehicles and drones [9] - LG and Toyota are forming a joint venture in North Carolina to establish a battery recycling pre-treatment plant, with a planned annual capacity of 13,500 tons starting in 2026 [12] - Samsung plans to incorporate Tesla's dry electrode technology in its solid-state batteries set for release in 2027, targeting a specific energy density of 500Wh/kg and rapid charging capabilities [14]

Financial Performance - For the year ended December 31, 2024, the turnover decreased by 13.0% to RMB 5,344,911,000 compared to RMB 6,145,228,000 in 2023[15] - The company reported a loss for the year of RMB 9,937,000, a significant decline from a profit of RMB 14,214,000 in the previous year, representing a 169.9% change[15] - Loss attributable to owners of the Company was RMB 11,980,000, down from a profit of RMB 20,109,000 in 2023, marking a 159.6% decrease[15] - Basic and diluted loss per share was RMB (1.10), a decrease of 159.8% from earnings of RMB 1.84 per share in 2023[16] - The Group's consolidated turnover for the Review Period was approximately RMB5,344.9 million, a decrease of approximately 13.0% compared to RMB6,145.2 million in 2023[53] - The Group recorded a loss attributable to owners of approximately RMB12.0 million, compared to a profit of RMB20.1 million in 2023, representing a year-on-year decrease of approximately 159.6%[59] - Gross profit for the Group was approximately RMB378.8 million, a decrease of approximately 9.5% compared to RMB418.8 million in 2023[59] - EBITDA for the year was approximately RMB162.4 million, representing a decrease of approximately 21.0% compared to RMB205.6 million in 2023[59] Business Strategy and Market Focus - The Group is adjusting its development strategy to explore new markets for wearable device batteries, automotive batteries, and energy storage batteries[7] - The Group's core business is the manufacturing and sales of 3C consumer lithium-ion battery products, and it is actively exploring new power supply product markets to diversify revenue sources[27] - The Group aims to improve operational efficiency and product development capabilities to address challenges from market competition and price reduction pressures[30] - The Group plans to shorten the research and development and manufacturing cycles to efficiently launch products that meet market demands[30] - The Group will focus on niche markets and establish differential advantages in various consumer lithium-ion battery product fields to create unique competitiveness[30] - The Group's strategy includes reallocating resources to commercial projects with higher returns and greater growth potential after exiting the Indian market[31] - The Group's investment in new energy storage intelligent hardware battery products aims to achieve higher profit margins and reduce dependence on the mobile phone battery segment[27] Sales and Revenue Insights - During the Review Period, approximately 60% of the Group's ODM sales revenue was derived from the mobile phone battery business, with sales volume and revenue decreasing by approximately 15% and 22% year-on-year respectively[30] - The sales revenue of tablet batteries and new power supply products increased by 11% and 24% year-on-year respectively, becoming the main drivers of the growth of the ODM business in 2024[30] - Over 90% of the Group's revenue during the Review Period came from the ODM business, primarily from the smartphone and tablet segments in the consumer electronics market[46] - Despite an increase in overall sales volume of ODM battery products, sales revenue and gross profit from mobile phone batteries decreased due to declining sales volume and prices[46] - Sales from mobile phone batteries amounted to approximately RMB3,334.3 million, representing 62.4% of the Group's consolidated turnover, down from 69.4% in 2023[64] Operational Efficiency and Cost Management - The Group aims to enhance market competitiveness by focusing on high-margin product segments and optimizing product structures[46] - The Group will strengthen its operational efficiency and cost control measures to stabilize gross and net profit levels amid external market risks[46] - The Group is focusing on improving profitability rather than just revenue growth, and will continue to invest in R&D for new technologies and products[48] - The Group aims to enhance operational efficiency and reduce production costs through equipment versatility and business restructuring[49] - The management team emphasized a focus on cost control measures, aiming to reduce operational costs by 10% over the next fiscal year[124] Corporate Governance and Management - The Company emphasizes corporate governance and compliance with the Securities and Futures Ordinance[139] - The Company has a diverse board with members holding various qualifications and extensive experience in finance and management[138] - The independent non-executive directors are actively involved in multiple committees, including Audit, Remuneration, and Corporate Governance[134][135] - The Company has a structured board with executive, non-executive, and independent non-executive directors, ensuring governance and oversight[161] - The Audit Committee consists of three members, including Mr. Heng Ja Wei Victor as Chairman[184] Future Outlook and Strategic Initiatives - The company has set a future outlook with a revenue guidance of $200 million for the next quarter, indicating a projected growth of 33%[124] - The company plans to invest $5 million in research and development for new battery technologies in the upcoming year[124] - The executive team highlighted a commitment to sustainability, with a goal to reduce carbon emissions by 15% by 2026[124] - The company is expanding its market presence in Southeast Asia, targeting a 20% market share by the end of 2025[124] - The company has completed a strategic acquisition of a local competitor, which is anticipated to increase its production capacity by 30%[124] Employee and Workforce Insights - The Group had 2,406 full-time employees as of December 31, 2024, a decrease from 2,534 in 2023[114] Legal and Compliance Matters - There are ongoing legal proceedings involving former directors, which may impact the Company's governance and reputation[132] - The Company has not disclosed any significant new product developments or market expansion strategies in the recent reports[140] Financial Position and Liquidity - Cash and cash equivalents increased to approximately RMB333.0 million as of December 31, 2024, up by approximately RMB199.2 million year-on-year[86] - The Group recorded a net cash inflow from operating activities of approximately RMB256.0 million, compared to a net cash outflow of RMB102.1 million in 2023[86] - Total borrowings as of December 31, 2024, amounted to approximately RMB1,222.2 million, a decrease from RMB1,299.8 million in 2023[91] - The Group's current ratio improved to approximately 1.2 times as of December 31, 2024, compared to 1.1 times in 2023[92] - Net current assets increased by approximately 7.3% to RMB525.9 million as of December 31, 2024, from RMB490.2 million in 2023[93]

Financial Performance - The company's turnover for the year ended December 31, 2024, was RMB 5,344,911 thousand, representing a decrease of 13.0% compared to RMB 6,145,228 thousand in 2023[5]. - The company reported a loss of RMB 9,937 thousand for the year, a significant decline of 169.9% from a profit of RMB 14,214 thousand in the previous year[5]. - Loss attributable to owners of the company was RMB 11,980 thousand, down 159.6% from a profit of RMB 20,109 thousand in 2023[5]. - Basic and diluted loss per share was RMB (1.10), a decrease of 159.8% from earnings of RMB 1.84 per share in 2023[5]. - Gross profit decreased by approximately 9.5% to RMB 378.8 million from RMB 418.8 million in 2023, with a gross profit margin of 7.1%[77]. - The Group's EBITDA was approximately RMB 162.4 million, representing a decrease of approximately 21.0% compared to RMB 205.6 million in 2023[65]. - The Group recorded a loss attributable to owners of the Company amounting to approximately RMB 12.0 million, a decline of 159.6% compared to a profit of RMB 20.1 million in 2023[90]. Assets and Liabilities - Total assets decreased by 10.3% to RMB 4,368,764 thousand from RMB 4,870,355 thousand in the previous year[5]. - The company's cash position improved significantly, increasing by 148.8% to RMB 332,961 thousand from RMB 133,825 thousand[5]. - The current ratio increased to 1.2 from 1.1, indicating improved liquidity[5]. - The debt-to-equity ratio decreased to 112.4% from 119.7%, reflecting a reduction in leverage[5]. - As of December 31, 2024, the Group's borrowings amounted to approximately RMB 1,222.2 million, a decrease of approximately 5.9% from RMB 1,299.8 million in 2023[97]. - The total debt to equity ratio as of December 31, 2024, was approximately 112.4%, down from 119.7% in 2023[97]. - Net current assets increased by approximately 7.3% to RMB 525.9 million as of December 31, 2024, from RMB 490.2 million in 2023[99]. Business Strategy and Market Focus - The company is adjusting its development strategy to explore new markets for wearable device batteries, automotive batteries, and energy storage batteries[13]. - Veson Holdings Limited focuses on lithium-ion technology applications and aims to provide diversified and professional module solutions in response to market changes[13]. - The Group's core business is the manufacturing and sales of 3C consumer lithium-ion battery products, and it is actively exploring new power supply product markets to diversify revenue sources[33]. - The Group aims to improve operational efficiency and product development capabilities to address challenges from market competition and price reduction pressures[36]. - The Group will focus on niche markets and establish differential advantages in various consumer lithium-ion battery product fields to create unique competitiveness[36]. - The Group will strive to seize market growth opportunities and accelerate the deployment of new products to support long-term sustainable development[36]. Sales and Revenue - During the Review Period, approximately 60% of the Group's ODM sales revenue was derived from the mobile phone battery business, with sales volume and revenue decreasing by approximately 15% and 22% year-on-year respectively[36]. - The sales revenue of tablet batteries and new power supply products increased by 11% and 24% year-on-year respectively, becoming the main drivers of the growth of the ODM business in 2024[36]. - The ODM business accounted for approximately 93.4% of the Group's consolidated turnover, with a turnover of approximately RMB 4,994.6 million, down from RMB 5,745.8 million in 2023[59]. - Sales from mobile phone batteries amounted to approximately RMB 3,334.3 million, representing 62.4% of the Group's consolidated turnover, down from 69.4% in 2023[70]. - New power supply products generated sales of approximately RMB 262.6 million, contributing approximately 4.9% to the Group's consolidated turnover, up from 3.5% in 2023[70]. Operational Efficiency - The Group plans to control operating costs by strictly managing fixed expenses and material procurement costs while improving operational efficiency to stabilize gross and net profit[41]. - The Group aims to improve operational efficiency and reduce production costs through equipment versatility and process optimization[55]. - The Group's overall shipment of the ODM business showed an upward trend compared to 2023, despite challenges from competitors' low-price strategies[36]. Governance and Management - The Group's management team has extensive experience in financial management, engineering, and corporate governance, enhancing its strategic capabilities[133][136]. - The Group has adopted a share option plan to reward eligible participants, including directors and employees, for their contributions[125]. - The Group's board of directors regularly reviews compensation policies based on operational performance and market statistics[126]. - The Group's executive directors include Feng Ming Zhu, who has been with the Group since March 2007, and Lian Xiu Qin, who has over 20 years of experience in engineering and manufacturing technologies[127][128]. Future Outlook - The smartphone market is expected to continue growing in 2025, driven by device update cycles and demand from emerging markets, with AI technology playing a significant role[46]. - The rapid penetration of AI technology is expected to drive smartphone replacement demand in the coming years, influencing market growth[47]. - The popularization of AI-enabled mobile phones is expected to significantly increase the demand for high-performance lithium-ion batteries, driving further upgrades in battery technology[32].

Financial Performance - For the six months ended June 30, 2024, the turnover was RMB 2,440,776, a decrease of 7.7% compared to RMB 2,645,133 in the same period of 2023[5]. - The profit for the period was RMB 5,556, representing a significant improvement of 136.2% from a loss of RMB 15,343 in the previous year[5]. - Profit attributable to owners of the Company was RMB 5,524, up 138.7% from a loss of RMB 14,290 in the same period last year[5]. - Basic and diluted earnings per share were RMB 0.51, a turnaround from a loss of RMB 1.31 per share in the previous year, reflecting an increase of 138.9%[5]. - The Group recorded a consolidated turnover of approximately RMB2,440.8 million, a decrease of approximately 7.7% compared to RMB2,645.1 million in the same period of 2023[29]. - Gross profit for the Group was approximately RMB156.2 million, a decrease of approximately 13.3% from RMB180.1 million in the same period of 2023[29]. - The Group achieved a net profit of approximately RMB5.6 million, a significant improvement from a net loss of RMB15.3 million in 2023, with basic and diluted earnings per share of RMB0.51 compared to a loss of RMB1.31 per share in 2023[31]. - Total comprehensive income for the period, net of tax, was RMB 3,424, compared to a loss of RMB 13,864 in the same period last year[60]. Business Operations and Market Trends - The Group is focusing on R&D and application of lithium-ion batteries, with plans to explore new markets for wearable device batteries, car batteries, and backup batteries[8]. - According to IDC, global smartphone shipments increased by 6.5% year-on-year in Q2 2024, reaching approximately 285.4 million units, marking four consecutive quarters of growth[8]. - IDC forecasts a 4% year-on-year increase in global smartphone shipments for 2024, projecting a total of approximately 1.21 billion units[8]. - The Group's ODM business primarily supplies lithium-ion batteries for mobile phones, tablets, notebooks, and power banks, adapting to the rising trend in battery shipments for emerging consumer electronics[8]. - The strategic adjustment aims to respond to market changes driven by the device update cycle and growth in demand from emerging markets[8]. - The global smartphone market is expected to recover with a growth rate of 2.3% in 2025, driven by the rapid penetration of AI technology[12]. - The backup battery market is expected to maintain rapid growth, driven by the large-scale application of 5G technology[20]. - The smartphone market is anticipated to remain a key platform for personal entertainment and social networking for the foreseeable future[19]. Sales and Revenue Insights - More than 90% of the Group's revenue during the first half of 2024 was derived from the ODM business, primarily from the smartphone and tablet segments[17]. - Despite an increase in overall sales volume of ODM battery products, sales revenue and gross profit from mobile phone batteries decreased due to declining sales volume and prices[17]. - The gross profit margin for mobile phone products and related accessories contracted due to overcapacity in the mobile phone industry and fierce domestic price competition[17]. - Sales from ODM business accounted for approximately 91.6% of total revenue, with a revenue decrease of 9.5% attributed to reduced demand for lithium batteries and lower sales prices[31]. - Sales from mobile phone batteries were approximately RMB1,517.1 million, representing 62.2% of consolidated turnover, down from 67.5% in 2023[32]. Cost Management and Efficiency - The Group focused on improving operational efficiency and reducing production costs through asset and labor optimization during the Review Period[24]. - The Group's consolidated cost of sales decreased by approximately 7.3% to RMB2,284.6 million from RMB2,465.0 million in 2023, influenced by lower market prices for key materials[32]. - Administrative expenses were approximately RMB111.6 million, accounting for 4.6% of consolidated turnover, down from 4.9% in 2023, mainly due to reduced office expenses and staff salaries[33]. - Selling and distribution expenses were RMB (34,046), a decrease from RMB (40,675) in the previous year, indicating improved cost management[58]. Research and Development - Continuous investment in research and development of new technologies, particularly in industrial design and AI applications, is a priority for the Group[20]. - Research and development costs for the six months ended June 30, 2024, were RMB 49,532, an increase of 15.4% compared to RMB 42,884 in 2023[98]. Financial Position and Cash Flow - Cash and cash equivalents as of June 30, 2024, amounted to approximately RMB255.4 million, an increase from RMB133.8 million at December 31, 2023[42]. - The Group recorded a net cash inflow from operating activities of approximately RMB20.1 million for the six months ended June 30, 2024, compared to a net cash outflow of RMB487.9 million in 2023[42]. - Outstanding borrowings as of June 30, 2024, amounted to approximately RMB1,283.4 million, a slight decrease from RMB1,299.8 million at December 31, 2023[44]. - The total debt to equity ratio was approximately 117.8% as of June 30, 2024, down from 119.7% at December 31, 2023[44]. - The Group's current ratio improved to approximately 1.2 times as of June 30, 2024, compared to 1.1 times at December 31, 2023[44]. - The Group's net current assets were approximately RMB 516.7 million, an increase of about 5.4% from RMB 490.2 million as of December 31, 2023[45]. Corporate Governance and Compliance - The Company complied with all code provisions set out in the Corporate Governance Code during the Review Period[144]. - The Audit Committee, comprising three independent non-executive Directors, reviewed the unaudited financial information for the six months ended 30 June 2024 before presenting it to the Board for approval[145]. - The Directors confirmed compliance with the Model Code for Securities Transactions throughout the review period[144]. Shareholder Information - The substantial shareholders include Swift Joy Holdings Limited with 423,770,000 shares (38.88%) and Right Grand Holdings Limited with 128,568,000 shares (11.79%) as of June 30, 2024[141]. - Fang Jin holds interests in controlled corporations with 552,338,000 shares, representing 50.67% of the issued voting shares[141]. - The Board has decided not to recommend the payment of an interim dividend for the six months ended 30 June 2024, consistent with the interim dividend of 2023, which was also Nil[144].

Financial Performance - For the six months ended June 30, 2024, the turnover was RMB 2,440,776, a decrease of 7.7% compared to RMB 2,645,133 in the same period of 2023[1] - The profit for the period was RMB 5,556, a significant improvement from a loss of RMB 15,343 in the previous year, representing a 136.2% increase[1] - Profit attributable to owners of the Company was RMB 5,524, compared to a loss of RMB 14,290 in the same period last year, marking a 138.7% increase[1] - Basic and diluted earnings per share were RMB 0.51, a recovery from a loss of RMB 1.31 per share in the previous year, reflecting a 138.9% improvement[1] - Gross profit for the Group was approximately RMB 156.2 million, a decrease of approximately 13.3% compared to RMB 180.1 million in the same period of 2023[28] - The Group recorded a consolidated turnover of approximately RMB2,440.8 million, a decrease of approximately 7.7% compared to RMB2,645.1 million in the same period of 2023[28] - The Group achieved a net profit of approximately RMB5.6 million, a significant improvement from a net loss of RMB15.3 million in 2023[30] - Total comprehensive income for the period, net of tax, was RMB 3,424, recovering from a loss of RMB 13,864 in the previous year[56] Market Trends - Global smartphone shipments increased by 6.5% year-on-year to approximately 285.4 million units in Q2 2024, indicating a recovery in the market[9] - IDC forecasts that global smartphone shipments will rise by 4% year-on-year to approximately 1.21 billion units in 2024, driven by device updates and demand from emerging markets[9] - The smartphone market is anticipated to resume growth as consumer confidence improves, although competition will intensify due to technological advancements[14] - The global smartphone market experienced a year-on-year growth of 6.5% in Q2 2024, reaching approximately 285.4 million units, marking four consecutive quarters of growth[12] Business Strategy - The Group is focusing on R&D and application of lithium-ion batteries, targeting markets for wearable device batteries, car batteries, and backup batteries[9] - The Group is actively exploring new power supply product markets, including backup battery products, to diversify business risks and improve profit margins[20] - The Group's strategy includes continuous investment in R&D for new technologies and innovations in industrial design and AI applications to meet changing customer needs[20] - The Group aims to reduce its dependence on the mobile phone battery segment by broadening its product and technology platforms[19] Revenue Sources - Over 90% of the Group's revenue during the review period (January 1, 2024, to June 30, 2024) was derived from the ODM business, primarily from the smartphone and tablet segments[17] - The ODM business generated a turnover of approximately RMB2,236.9 million, accounting for approximately 91.6% of the Group's consolidated turnover, down from 93.5% in 2023[29] - Sales from mobile phone batteries amounted to approximately RMB1,517.1 million, accounting for 62.2% of the Group's consolidated turnover, down from 67.5% in 2023[31] - New power supply products contributed approximately RMB126.0 million to the ODM business turnover, representing an increase of approximately 29.9% year-on-year[24] Financial Position - Cash and cash equivalents as at 30 June 2024 amounted to approximately RMB255.4 million, an increase from RMB133.8 million at 31 December 2023[40] - The Group recorded a net cash inflow from operating activities of approximately RMB20.1 million for the six months ended 30 June 2024, compared to a net cash outflow of RMB487.9 million in 2023[40] - Outstanding borrowings as at 30 June 2024 amounted to approximately RMB1,283.4 million, a slight decrease from RMB1,299.8 million at 31 December 2023[42] - The total debt to equity ratio was approximately 117.8% as at 30 June 2024, down from 119.7% at 31 December 2023[42] - The Group's current ratio improved to approximately 1.2 times as at 30 June 2024, compared to 1.1 times at 31 December 2023[42] Operational Efficiency - The Group will focus on improving operating efficiency and exploring new power supply product markets to establish competitive advantages[22] - The Group's future business plans will prioritize profit enhancement over revenue growth while monitoring market competition[22] - Selling and distribution expenses decreased to approximately RMB34.0 million, accounting for 1.4% of the Group's consolidated turnover, down from 1.5% in 2023[32] - Administrative expenses were approximately RMB111.6 million, representing 4.6% of the Group's consolidated turnover, a decrease from 4.9% in 2023[32] Employee and Corporate Governance - Employee costs for the review period totaled RMB192.6 million, compared to RMB220.1 million for the six months ended June 30, 2023[45] - The Group had 2,542 full-time employees as of June 30, 2024, down from 2,835 employees as of June 30, 2023[45] - The ratio of male to female employees was 63.8% and 36.2%, respectively, as of June 30, 2024, compared to 65.2% and 34.8% in 2023[45] - The company complied with all code provisions of the Corporate Governance Code during the review period[138] Compliance and Accounting - The interim financial information has been prepared in accordance with International Accounting Standard 34, ensuring compliance with relevant accounting standards[68] - The company has not early adopted any new or amended IFRS Accounting Standards that have been issued but not yet effective in the current accounting period, ensuring stability in accounting practices[71] - The amendments to IFRSs effective from January 1, 2024, did not have any significant impact on the Group's accounting policies, indicating a stable regulatory environment[74] Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2024, was RMB20,057,000, a significant improvement from a cash outflow of RMB487,894,000 in the same period of 2023[65] - The net cash generated from investing activities was RMB149,028,000, compared to RMB189,689,000 in the prior year, indicating a decrease of approximately 21.4%[65] - The net cash used in financing activities was RMB47,376,000, a decline from a cash inflow of RMB209,724,000 in the previous year[65] Related Party Transactions - Related party transactions included rental expenses paid to Scud Stock (Fujian) Co., Ltd. totaling RMB5,084,000 during the period, compared to RMB5,506,000 in the previous period[117] - The Group guaranteed certain bank facilities for its subsidiaries amounting to RMB3,521,000,000 as of June 30, 2024, an increase from RMB3,071,000,000 as of December 31, 2023, reflecting a growth of approximately 14.6%[119]

Financial Performance - The turnover for the year ended December 31, 2023, was RMB 6,145,228 thousand, representing a decrease of 3.4% compared to RMB 6,359,226 thousand in 2022[17]. - Profit for the year decreased by 29.2% to RMB 14,214 thousand from RMB 20,066 thousand in the previous year[17]. - Profit attributable to owners of the Company was RMB 20,109 thousand, down 16.3% from RMB 24,038 thousand in 2022[17]. - Basic and diluted earnings per share decreased by 16.7% to 1.84 RMB cents from 2.21 RMB cents in the prior year[17]. - The Group's gross profit for 2023 was approximately RMB 418.8 million, representing a decrease of approximately 8.3% compared to RMB 456.7 million in 2022[67]. - EBITDA for the year was approximately RMB 205.6 million, down approximately 7.5% from RMB 222.3 million in 2022[67]. - The ODM business recorded a turnover of approximately RMB 5,745.8 million, accounting for approximately 93.5% of the Group's consolidated turnover, a decrease from 95.1% in 2022[57]. - Sales revenue from mobile phone batteries has declined, adversely affecting the Group's operating results and financial performance for 2023[28]. - The gross profit for the Group was approximately RMB 418.8 million, reflecting a decrease of about 8.3% from RMB 456.7 million in 2022, with a gross profit margin of 6.8%[81][85]. Market Trends and Strategies - The Group is actively exploring new power supply product markets, including wearable device batteries and car batteries, to adapt to market changes[5]. - The Group is broadening its product and technology platforms to diversify revenue sources and reduce dependence on the mobile phone battery segment[28]. - The smart wearable market is expected to maintain rapid growth, driven by the large-scale application of 5G technology[28]. - The high-end mobile phone market, particularly foldable mobile phones, is expected to provide differentiated applications and enhance user experience[52]. - Future strategies include accelerating new product launches and enhancing operational efficiency to capture market opportunities[56]. - The Group expects to seize future market growth opportunities and accelerate new product launches to explore new sources of revenue and profit[33]. Operational Efficiency and Quality Control - The Group aims to enhance market competitiveness through improved business operating efficiency and better cost control[11]. - The Group emphasizes continuous improvement in quality control and production efficiency to meet high safety standards for manufactured batteries[36]. - The Group aims to improve operating efficiency and re-development capabilities to establish a competitive advantage in various consumer lithium-ion battery product segments[33]. Corporate Governance and Management - The Company has established a governance structure with a Corporate Governance Committee to oversee compliance and strategic direction[140]. - The management team includes professionals with extensive backgrounds in finance and risk management, ensuring robust operational oversight[139]. - The company is led by experienced executives, including Mr. Feng, who has held various strategic roles since joining in 2007, enhancing the group's strategic development and internal controls[134]. - The Company has a diverse board with members holding significant qualifications in accounting and finance[149][150]. - The independent non-executive directors contribute to various committees, enhancing corporate governance and oversight[149][150]. Employee and Leadership Insights - The Group had 2,534 full-time employees as of December 31, 2023, a decrease from 3,023 employees in 2022[125]. - Ms. Lian has over 20 years of experience in engineering and manufacturing technologies, contributing to the development of a polymer battery metal shell structure patented in China[133]. - The company has a strong focus on battery production technologies, with Ms. Lian's publications being used as teaching materials in training schools[138]. - The management team is committed to continuous improvement and professional development, as evidenced by their qualifications and training in relevant fields[141]. Financial Position and Liabilities - Cash and cash equivalents decreased to approximately RMB 133.8 million as of December 31, 2023, down from RMB 200.9 million in 2022[98]. - The Group's borrowings increased to approximately RMB 1,299.8 million in 2023 from RMB 1,186.5 million in 2022, with a total debt to equity ratio of approximately 119.7%[104]. - The Group's total liabilities to equity ratio was approximately 119.7% as of December 31, 2023, compared to 111.0% in 2022[106]. - The Group's net current assets increased by approximately 24.4% to RMB 490.2 million as of December 31, 2023, from RMB 393.9 million in 2022[109]. Shareholder Information and Dividends - The Board has decided not to recommend any final dividend for the year ended December 31, 2023, to preserve cash for working capital requirements[164]. - The Company has not recorded any interests or short positions in shares by directors as per the Securities and Futures Ordinance[184]. - The total remuneration of the Directors and the five highest-paid employees for the year ended December 31, 2023, is detailed in the consolidated financial statements[200].

Financial Performance - The total revenue for the year ended December 31, 2023, was RMB 6,145,228 thousand, a decrease of 3.4% compared to RMB 6,359,226 thousand in 2021[5]. - The net profit for the year was RMB 14,214 thousand, representing a decline of 29.2% from RMB 20,066 thousand in the previous year[5]. - The profit attributable to owners of the company increased by 16.3% to RMB 20,109 thousand from RMB 24,038 thousand in 2021[5]. - The Group's turnover for the year ended December 31, 2023, was RMB 6,145,228 thousand, a decrease of 3.4% compared to RMB 6,359,226 thousand in 2022[24]. - Profit for the year was RMB 14,214 thousand, down 29.2% from RMB 20,066 thousand in 2022[24]. - Profit attributable to owners of the Company decreased by 16.3% to RMB 20,109 thousand from RMB 24,038 thousand in the previous year[24]. - Basic and diluted earnings per share fell by 16.7% to 1.84 RMB cents from 2.21 RMB cents in 2022[24]. - Gross profit decreased by approximately 8.3% to RMB 418.8 million from RMB 456.7 million in 2022, resulting in a gross profit margin of 6.8%[88]. - EBITDA for the year was approximately RMB 205.6 million, a decrease of approximately 7.5% from RMB 222.3 million in 2022[74]. Revenue Sources and Market Trends - Over 90% of the Group's revenue is derived from the ODM business, primarily from the smartphone segment in the consumer electronics market[35]. - The Group's sales revenue from mobile phone batteries has declined due to a slowdown in the global economy and weaker consumer demand[35]. - The Group is broadening its product and technology platforms to diversify revenue sources and reduce dependence on mobile phone battery sales[35]. - The smart wearable market is expected to maintain rapid growth, driven by the large-scale application of 5G technology[35]. - The proportion of mobile phone lithium-ion batteries in the consumer lithium-ion battery market has declined, but their applications in new energy vehicles and energy storage are expanding rapidly[55]. - The high-end mobile phone market, particularly foldable phones, is expected to enhance user experience and drive demand for differentiated applications[59]. - New power supply products, including wearable device batteries and car batteries, contributed approximately RMB 212.2 million to ODM turnover, representing about 3.7% of the segment[69]. Operational Efficiency and Strategic Focus - The group aims to enhance its market competitiveness through improved operational efficiency and cost control[18]. - The company has developed a modernized manufacturing system that emphasizes refined management and high efficiency[18]. - The Group aims to enhance operational efficiency and re-development capabilities to reduce production line equipment input costs and respond quickly to new product and technology requirements[40]. - The Group plans to accelerate new product launches to explore new revenue and profit sources while maintaining its position in the mobile phone battery market[40]. - The Group emphasizes talent development, product quality, and environmental awareness to achieve sustainable development and provide safe green energy products[43]. Challenges and Risks - The Group's investment project in India has faced significant challenges and is under reevaluation due to changes in the business environment and customer investment shrinkage[39]. - There are currently no plans for new overseas ODM business, with future decisions dependent on customer needs and the Company's strategic plan[39]. - The Group will reassess the investment benefits and project value in India due to increased risks and uncertainties following changes in the business environment[41]. - The global smartphone market saw a 3.2% year-on-year decline in shipments, totaling 1.17 billion units in 2023, due to factors like economic volatility and increased market saturation[49]. Cash Flow and Financial Position - The cash position at the end of the year was RMB 133,825 thousand, a significant drop of 33.4% from RMB 200,944 thousand[5]. - The Group recorded a net cash outflow from operating activities of approximately RMB 102.1 million in 2023, compared to a net cash outflow of RMB 177.9 million in 2022[105]. - As of December 31, 2023, the Group's borrowings amounted to approximately RMB 1,299.8 million, an increase of approximately 9.5% from RMB 1,186.5 million in 2022[111]. - The total debt to equity ratio was approximately 119.7% as of December 31, 2023, compared to 111.0% in 2022[111]. - The Group's net current assets increased by approximately 24.4% to RMB 490.2 million as of December 31, 2023, from RMB 393.9 million in 2022[116]. - The Group's net assets as of December 31, 2023, were approximately RMB 1,086.1 million, reflecting a 1.6% increase from RMB 1,069.3 million in 2022[116]. Corporate Governance and Management - Veson Holdings Limited was listed on the Main Board of the Stock Exchange of Hong Kong Limited in December 2006[12]. - The Group's executive directors are responsible for strategic development, daily operations, and risk management, with a focus on enhancing internal control procedures[139][140][146]. - The Group's management regularly reviews compensation policies and employee performance to align with market standards[138]. - The Company has a diverse board with members holding qualifications from prestigious institutions, enhancing its governance and oversight capabilities[156]. - The independent non-executive directors are actively involved in various committees, including Audit, Remuneration, and Corporate Governance, ensuring robust corporate governance practices[152]. Employee and Talent Management - As of December 31, 2023, the Group had 2,534 full-time employees, a decrease from 3,023 in 2022[132]. - The Group's compensation policy is based on individual performance, professional qualifications, and market trends, ensuring salaries are competitive[137]. - The Group emphasizes continuous professional development, with executives holding advanced degrees and specialized training in their fields[145][148]. Shareholder Returns and Dividends - The Group's reserves available for distribution to shareholders as of December 31, 2023, amounted to approximately RMB 983.9 million, an increase from RMB 962.6 million in 2022[181]. - The Board has decided not to recommend any final dividend for the year ended December 31, 2023, to preserve cash for working capital requirements[172].

Financial Performance - For the six months ended June 30, 2023, the turnover decreased by 16.1% to RMB 2,645,133,000 compared to RMB 3,151,541,000 in the same period of 2022[15]. - The company reported a loss for the period of RMB 15,343,000, a significant decline from a profit of RMB 12,447,000 in the previous year, representing a 223.3% change[15]. - The loss attributable to owners of the company was RMB 14,290,000, compared to a profit of RMB 14,214,000 in the prior year, marking a 200.5% change[15]. - Basic and diluted loss per share was RMB (1.31) cents, a decrease of 200.8% from earnings of RMB 1.30 cents per share in the previous year[15]. - Gross profit for the Group was approximately RMB 180.1 million, a decrease of approximately 31.4% compared to RMB 262.7 million in the same period of 2022[50]. - EBITDA for the Group was approximately RMB 76.9 million, down approximately 38.1% from RMB 124.3 million in the same period of 2022[50]. - The Group recorded a total comprehensive loss of RMB 13,864 for the period, compared to a loss of RMB 7,962 in the previous year[121]. - The total comprehensive income for the period ended June 30, 2023, was RMB (13,582,000), a significant decline from the total comprehensive income of RMB 2,752,000 for the same period in 2022[128]. Market Trends - According to IDC, smartphone shipments in China for Q1 2023 were approximately 65.44 million units, down by 11.8% year-on-year, indicating ongoing market challenges[18]. - The overall industry is experiencing a prolonged consumer replacement cycle due to economic factors and weak consumer confidence, impacting demand for new devices[20]. - In Q1 2023, China's foldable product shipments reached 1.02 million units, a year-on-year increase of 52.8%[22]. - In Q2 2023, smartphone shipments in China were approximately 65.7 million units, down by 2.1% year-on-year, indicating a significant narrowing of the decline[24]. - Total smartphone shipments in the first half of 2023 were approximately 130 million units, representing a year-on-year decrease of 7.4%[24]. - The foldable smartphone market saw shipments of nearly 3.3 million units in 2022, achieving a year-on-year growth of 118%[23]. - Foldable smartphone shipments are expected to reach 4.5 million units in 2023, reflecting a growth rate of 69.5%[23]. - IDC predicts a 3.2% decline in global smartphone shipments to 1.17 billion units in 2023, with a recovery expected in 2024 at a growth rate of 6%[25]. Business Strategy - The company is focusing on R&D and application of lithium-ion batteries, aiming to expand into new markets such as wearable device batteries and automotive batteries[17]. - The company is adjusting its development strategy to respond to market changes and increasing demand for emerging consumer electronics products[17]. - The ODM business primarily supplies lithium-ion batteries for mobile phones, tablets, notebooks, and power banks, reflecting a shift in product focus[17]. - The company aims to provide more diversified professional module business to its customers in response to market trends[17]. - The Group is diversifying its product and technology platforms to reduce dependence on the mobile phone battery segment[32]. - The Group aims to enhance operational efficiency and explore new markets for power supply products, including wearable device batteries and car batteries, to capture market opportunities[36]. - The Group is focusing on expanding its ODM business while managing losses in the bare battery cell segment[156]. Financial Position - As of June 30, 2023, the Group's outstanding borrowings amounted to approximately RMB 1,400,300,000, an increase from RMB 1,186,500,000 at the end of 2022[79]. - The total debt to equity ratio increased to approximately 132.7% as of June 30, 2023, compared to 111.0% at the end of 2022, primarily due to an increase in short-term borrowings[79]. - The Group's current ratio remained stable at approximately 1.1 times as of June 30, 2023, with current assets of approximately RMB 3,535,000,000 and current liabilities of approximately RMB 3,136,500,000[84]. - Net current assets increased by approximately 1.1% to RMB 398,400,000 as of June 30, 2023, from RMB 393,900,000 at the end of 2022[89]. - The Group's capital commitments outstanding as of June 30, 2023, amounted to approximately RMB 46,000,000, up from RMB 19,100,000 at the end of 2022, mainly for the acquisition of property, plant, and equipment[91]. - The Group's treasury management focuses on maintaining a diversified debt profile and enhancing cost-efficiency in funding initiatives to ensure financial flexibility[75]. - The Group's total equity attributable to owners of the Company as of June 30, 2023, was RMB 1,056,625,000, down from RMB 1,070,207,000 at the end of 2022, indicating a decrease of approximately 1.3%[128]. Operational Efficiency - The Group recorded a net cash outflow from operating activities of approximately RMB 487,900,000 for the six months ended June 30, 2023, compared to RMB 403,600,000 in 2022[78]. - The cash and cash equivalents at the end of the period on June 30, 2023, were RMB 118,205,000, down from RMB 175,270,000 at the end of June 30, 2022, representing a decrease of about 32.6%[132]. - The Group's operations are primarily conducted in RMB, and it does not face significant difficulties from foreign exchange fluctuations[99]. - The Group continues to monitor foreign exchange risks and will take prudent measures when necessary[99]. - The Group's operations are not significantly affected by COVID-19, indicating no ongoing concern issues[145]. Employee and Management - As of June 30, 2023, the Group had 2,835 full-time employees, a decrease from 3,155 employees as of June 30, 2022, representing a reduction of approximately 10.1%[104][107]. - Employee costs for the review period amounted to RMB 220.1 million, down from RMB 310.5 million for the six months ended June 30, 2022, indicating a decrease of approximately 29.1%[104][107]. - The management regularly reviews the remuneration policy to ensure it aligns with market standards and performance-related rewards[104][107]. Research and Development - Research and development costs for the six months ended June 30, 2023, were RMB 42,884,000, down 42.9% from RMB 75,116,000 in the same period of 2022[173].

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。 VESON HOLDINGS LIMITED 銳信控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：01399） 2023年中期業績公告 銳信控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及其附屬公司 （合稱「本集團」）截至2023年6月30日止六個月的未經審核中期業績。本公告列載本公司 2023年中期報告（「2023年中期報告」）全文，並符合香港聯合交易所有限公司證券上市規 則中有關中期業績初步公告附載的資料的要求。本中期業績公告及2023年中期報告將可 於香港交易及結算所有限公司網站www.hkexnews.hk及本公司網站www.vesonhldg.com閱 覽。2023年中期報告的印刷版本將寄發予本公司股東（「股東」）。 財務摘要 截至2023年6月30日止六個月 （除另有註明外，以人民幣千元列示） ...

Financial Performance - The turnover for the year ended December 31, 2022, was RMB 6,359,226 thousand, a decrease of 10.3% compared to RMB 7,091,644 thousand in 2021[16]. - Profit for the year was RMB 20,066 thousand, down 48.0% from RMB 38,561 thousand in 2021[16]. - Profit attributable to owners of the Company decreased by 43.0% to RMB 24,038 thousand from RMB 42,182 thousand in the previous year[16]. - Basic and diluted earnings per share fell by 42.9% to 2.21 RMB cents from 3.87 RMB cents in 2021[16]. - The Group's consolidated turnover for the year 2022 was approximately RMB6,359.2 million, a decrease of about 10.3% compared to RMB7,091.6 million in 2021[60]. - Profit attributable to owners of the Company for 2022 was approximately RMB24.0 million, down from RMB42.2 million in 2021[60]. - Basic and diluted earnings per share for 2022 were approximately RMB2.21 cents, compared to RMB3.87 cents in 2021[60]. - Gross profit for the Group was approximately RMB456.7 million, representing a decrease of approximately 11.3% compared to 2021[74]. - The overall gross profit margin decreased to approximately 7.2% in 2022, down from 7.3% in 2021, with the ODM business gross profit margin at approximately 7.4%[88]. - The net profit for the ODM business was approximately RMB108.2 million, a decrease from RMB171.7 million in 2021[68]. Business Operations - The Group focuses on R&D and application of lithium-ion battery technology, serving well-known mobile communication and internet technology companies[5]. - The main production base is located in Fuzhou, PRC, featuring strict quality control and advanced automated equipment[10]. - The Group aims to enhance market competitiveness through improved business operating efficiency and better cost control[10]. - The Group's main business, ODM, focused on lithium-ion battery production for 3C consumer electronics and smart hardware, establishing itself as a major supplier for smartphones and consumer electronics[28]. - The Group improved its quality control system and production efficiency, integrating resources and adding automation equipment to enhance production capacity[29]. - Two new factories were completed in April 2020, with parts put into use between 2021 and 2022, providing additional production capacity and optimizing the production process[29]. - The ODM business generated a turnover of approximately RMB6,024.8 million, accounting for approximately 94.7% of the Group's consolidated turnover[60]. - The bare battery cell business recorded a turnover of approximately RMB140.2 million, representing about 2.2% of the Group's consolidated turnover[60]. - Sales volume of mobile phone batteries decreased by approximately 19.3% to about 116 million units during the review period[64]. - The Group has actively expanded into other battery fields, increasing revenue from notebook batteries, tablet batteries, and other types of batteries[64]. Market Trends - Despite efforts to expand and attract more industry clients, the market demand for ODM battery products has not yet returned to pre-pandemic levels, with 2023 expected to remain challenging[34]. - The smartphone market has shown signs of saturation, but there is significant potential for development in terms of quality and technological innovation[35]. - In 2022, global smartphone shipments were 1.2 billion units, the lowest since 2013, representing a year-on-year decline of over 11%[45]. - Smartphone shipments in Mainland China were approximately 286 million units in 2022, down 13.2% year-on-year, marking the largest decline ever[45]. - The smartphone replacement cycle in China is expected to increase to 34 months due to factors such as rising prices and insufficient innovation[45]. - The Group anticipates that 2023 will remain a challenging year, with market demand for ODM battery products not yet recovering to pre-Pandemic levels[36]. - The global 5G terminal market is expected to achieve steady growth starting in 2024, driven by the promotion of mid-to-low end 5G terminals[46]. - Foldable mobile phones are expected to maintain high growth, with more ODM companies entering the market, leading to price stabilization[46]. Corporate Governance and Management - The company was listed on the Main Board of The Stock Exchange of Hong Kong Limited in December 2006[5]. - The Group's management discussion and analysis section provides insights into financial performance and strategic direction[172]. - The Board of Directors includes experienced professionals with extensive backgrounds in finance and management, enhancing corporate governance[171]. - The company has a diverse board with members holding various qualifications and extensive experience in finance and governance[156]. - The independent non-executive directors have served in multiple capacities across different companies listed on the Stock Exchange[153]. - The Group's employee remuneration is based on personal performance, professional qualifications, and market trends, ensuring compliance with market standards[135]. - The Group's management regularly reviews the remuneration policy and evaluates employee performance[135]. - The remuneration of Directors is recommended by the Remuneration Committee and approved by the Board, considering the Group's operating results and individual performance[136]. Environmental and Social Responsibility - The Group has invested more resources in environmental, social, and governance (ESG) management to enhance sustainable development[39]. - The annual report includes discussions on the Group's environmental policies and performance, as well as community investment initiatives[172]. - The Group's commitment to corporate social responsibility is highlighted through individual recognitions for contributions to poverty alleviation and ethnic unity[168]. Financial Position and Cash Flow - The Group recorded a net cash outflow from operating activities of approximately RMB177.9 million in 2022, compared to a net cash inflow of RMB152.9 million in 2021[109]. - As of December 31, 2022, the Group's cash and cash equivalents were approximately RMB200.9 million, a decrease of approximately RMB25.8 million year-on-year from RMB226.7 million in 2021[105]. - The Group's borrowings as of December 31, 2022, amounted to approximately RMB1,186.5 million, an increase from RMB1,175.0 million in 2021[106]. - The total debt to equity ratio was approximately 111.0% as of December 31, 2022, compared to 110.7% in 2021[112]. - The Group's net current assets increased by approximately 10.7% to RMB393.9 million as of December 31, 2022, from RMB355.9 million in 2021[114]. - The Group's net assets as of December 31, 2022, were approximately RMB1,069.3 million, reflecting a 0.7% increase from RMB1,061.4 million in 2021[118]. - The current ratio remained stable at approximately 1.1 times for both 2022 and 2021[113]. - The Group's capital commitments as of December 31, 2022, were approximately RMB19.1 million, up from RMB17.0 million in 2021, primarily for the acquisition of property, plant, and equipment[116]. Shareholder Returns - The Group decided not to recommend any final dividend for the year ended 31 December 2022 to preserve cash for working capital requirements[174]. - As of 31 December 2022, the Company's reserves available for distribution to shareholders amounted to approximately RMB962.6 million, an increase from RMB950.0 million in 2021[177]. - The company aims to enhance shareholder value through its share option scheme, which is designed to reward eligible participants[193][197]. - The company has retained earnings and other reserves as part of its distributable reserves, indicating a stable financial position[183].