香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 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） （股份編號：01399） 2022年度業績公告 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2022年12月31日止年度的經審核業績。本公告列載本公司2022年年 報（「2022年年報」）全文，並符合香港聯合交易所有限公司（「聯交所」）證券上市規則中有 關年度業績初步公告附載的資料的相關要求。本年度業績公告及2022年年報將可於香港 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。 2022年年報的印刷版本將寄發予本公司股東（「股東」）。 ...

Financial Performance - For the six months ended June 30, 2022, the turnover was RMB 3,151,541, a decrease of 1.4% compared to RMB 3,194,976 in the same period of 2021[11]. - Profit for the period increased by 44.9% to RMB 12,447 from RMB 8,592 in the previous year[11]. - Profit attributable to owners of the Company rose by 36.9% to RMB 14,214 compared to RMB 10,382 in the same period last year[11]. - Basic and diluted earnings per share increased by 36.8% to 1.30 RMB cents from 0.95 RMB cents[11]. - The Group recorded a consolidated turnover of approximately RMB3,151.5 million for the first half of 2022, a decrease of approximately 1.4% compared to RMB3,195.0 million in the same period of 2021[32]. - Profit attributable to owners of the Company was approximately RMB14.2 million, an increase from RMB10.4 million in 2021, with basic and diluted earnings per share of approximately RMB1.30 cents compared to RMB0.95 cents in 2021[32]. - The Group's gross profit was approximately RMB262.7 million, down approximately 4.0% from RMB273.6 million in 2021[46]. - EBITDA increased by approximately 27.5% to approximately RMB116.1 million, compared to RMB91.1 million in 2021[46]. - Profit for the period reached RMB 12,447,000, compared to RMB 8,592,000 in the previous year, indicating a year-over-year increase of about 45.5%[112]. - Profit attributable to the owners of the Company for the six months ended June 30, 2022, was approximately RMB 14.2 million, up from RMB 10.4 million in 2021[69]. Market Trends - The global smartphone shipments are predicted to decline by 3.5% to 1.31 billion units in 2022, while 5G mobile phone shipments are expected to increase by 25.5% to 700 million units, accounting for 53% of new phone shipments[14]. - The smartphone industry has experienced three consecutive quarters of declines in global supply and demand due to weak demand, inflation, and supply chain constraints[14]. - The mobile phone industry is expected to recover at a growth rate of 5% in 2023, with a five-year compound annual growth rate of 1.9% through 2026[14]. - The overall poor consumer sentiment in the smartphone market has led to a decline in sales for mainstream smartphone brands in China compared to 2021[14]. - Many mobile phone manufacturers are adopting more conservative operational strategies due to uncertainties in overseas markets, posing challenges for the market throughout the year[14]. - The stabilizing pandemic is anticipated to provide favorable conditions for the recovery of the smartphone industry[15]. Business Segments - The ODM business generated a turnover of approximately RMB3,009.7 million, accounting for approximately 95.5% of the Group's consolidated turnover, while the bare battery cell business recorded RMB73.8 million, accounting for approximately 2.3%[32]. - The ODM business segment generated a turnover of approximately RMB3,009,688, while the bare battery cell business contributed RMB73,834[172]. - The Group operates in two reportable segments: Original Design Manufacturing (ODM) and Bare Battery Cell business, focusing on lithium-ion battery modules and cells[156]. - ODM business involves manufacturing and supplying lithium-ion battery modules and related accessories for branded mobile phone and tablet manufacturers[156]. - The Bare Battery Cell business manufactures and sells lithium-ion bare battery cells for mobile phones, tablets, and power banks[156]. Financial Position - As of June 30, 2022, the Group's cash and cash equivalents amounted to approximately RMB175.3 million, a decrease from RMB226.7 million as of December 31, 2021, primarily due to a net cash outflow from operating activities of approximately RMB403.6 million[74]. - The Group's outstanding borrowings as of June 30, 2022, were approximately RMB1,315.4 million, an increase from RMB1,175.0 million as of December 31, 2021, with a total debt to equity ratio of approximately 124.9%[74]. - The Group's current ratio was approximately 1.1 times as of June 30, 2022, with current assets of approximately RMB4,061.1 million and current liabilities of approximately RMB3,649.7 million[76]. - Net current assets increased by approximately 15.6% to RMB411.4 million as of June 30, 2022, compared to RMB355.9 million as of December 31, 2021[76]. - The Group's net assets as of June 30, 2022, were approximately RMB1,053.4 million, a decrease of approximately RMB8.0 million from December 31, 2021[76]. - The Group's total assets at June 30, 2022, were RMB 1,060,363,000, compared to RMB 1,053,422,000 at the same time in 2021[128]. Operational Challenges - The pandemic has significantly impacted the smartphone industry, leading to a decrease in consumer sentiment and smartphone sales globally, with many manufacturers adopting conservative operational strategies[16]. - The economic environment is expected to remain complicated and severe in the second half of 2022, with ongoing uncertainties due to the pandemic[21]. - The Group's experienced ODM product development team is dedicated to optimizing battery solutions to meet customer needs, ensuring high safety standards for battery products[35]. Employee and Administrative Costs - As of June 30, 2022, the Group had 3,155 full-time employees, a decrease from 3,725 employees as of June 30, 2021[90]. - Employee costs for the review period amounted to RMB 264.4 million, an increase of 19.0% compared to RMB 222.1 million for the six months ended June 30, 2021[90]. - Administrative expenses increased to approximately RMB 172.5 million, representing 5.5% of the Group's turnover, up from 5.3% in 2021[65]. Cash Flow and Investments - For the six months ended June 30, 2022, the net cash used in operating activities was RMB (403,556,000), compared to RMB (14,026,000) for the same period in 2021[130]. - The net cash generated from investing activities for the six months ended June 30, 2022, was RMB 241,785,000, while it was RMB (258,237,000) in 2021[130]. - The net cash generated from financing activities was RMB 106,509,000 for the six months ended June 30, 2022, compared to RMB 232,918,000 in 2021[130]. Compliance and Reporting - The interim financial information was prepared in accordance with International Accounting Standard 34, ensuring compliance with international reporting standards[137]. - The interim financial information has been reviewed by BDO Limited, ensuring compliance with relevant auditing standards[148]. - Significant judgments and estimates used in preparing the interim financial information are consistent with those applied in the 2021 annual financial statements[153].

Financial Performance - The Group's turnover for the year ended December 31, 2021, was RMB 7,091,644 thousand, representing a 14.1% increase from RMB 6,216,571 thousand in 2020[16] - The profit for the year was RMB 38,561 thousand, a significant turnaround from a loss of RMB 57,482 thousand in the previous year, marking a 167.1% improvement[16] - Profit attributable to owners of the Company was RMB 42,182 thousand, compared to a loss of RMB 52,683 thousand in 2020, reflecting a 180.1% increase[16] - Basic and diluted earnings per share improved to 3.87 RMB cents, up from a loss of 4.83 RMB cents in the prior year, indicating a 180.1% increase[16] - The Group's consolidated turnover for the year 2021 was approximately RMB 7,091.6 million, representing an increase of about 14.1% compared to RMB 6,216.6 million in 2020[63] - The profit attributable to owners of the Company for 2021 was approximately RMB 42.2 million, a significant recovery from a loss of RMB 52.7 million in 2020[63] - Basic and diluted earnings per share for 2021 were approximately RMB 3.87 cents, compared to a loss per share of RMB 4.83 cents in 2020[63] - The Group recorded a reversal of impairment on trade and notes receivables of approximately RMB 1.8 million, compared to an impairment loss of approximately RMB 22.4 million in 2020[98] - The Group's EBITDA for the year was approximately RMB 235.1 million, representing an increase of approximately 189.9% compared to RMB 81.1 million in 2020[81] Business Operations - The Group focuses on R&D and application of lithium-ion battery technology, serving well-known mobile communication and internet technology companies[6] - The main production base is located in Fuzhou, PRC, utilizing industry-leading automated equipment and strict quality control systems[11] - The Group aims to enhance market competitiveness through improved business operating efficiency and better cost control[11] - 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[25] - The Group's production capacity was fully utilized, necessitating the expansion of its industrial park in Fuzhou, with two new factories completed in April 2020 and partially operational by mid-2021[28] - The Group improved its quality control system and production efficiency to meet high safety standards for manufactured batteries[27] - The Group actively sought new partnerships to enhance battery supply and meet existing customer needs[27] - The Group's consolidated market position strengthened through increased cooperation with well-known mobile communication and internet technology companies[25] Market Trends - The smartphone market experienced a rebound in 2021, but faced challenges such as semiconductor supply shortages and COVID-19 restrictions, impacting mobile phone shipments in the second half of the year[34] - The smartphone industry faced risks including lower-than-expected supply due to the pandemic and insufficient sales volume driven by 5G replacement[34] - Global smartphone shipments in 2021 reached 1.32 billion units, representing a year-on-year growth of only 6.1%[48] - The global shipments of 5G mobile phones in 2021 were approximately 530 million units, showing a year-on-year growth of nearly 80%[48] - The ongoing Pandemic has led to significant challenges in the smartphone industry, including weakened consumer purchasing desire and insufficient replacement momentum[48] - The integration of 5G technology is expected to drive overall sales growth in the smartphone market[48] - The demand for smart electronic products and related accessories is anticipated to increase as remote work and online activities become more prevalent[39] - The emergence of a 5G replacement wave and rising demand for smart devices are expected to drive lithium-ion battery demand in the coming years[49] Financial Position - The Group's cash and cash equivalents as of December 31, 2021, were approximately RMB 226.7 million, an increase of approximately RMB 15.4 million from RMB 211.3 million in 2020[107][112] - The Group's borrowings as of December 31, 2021, amounted to approximately RMB 1,175.0 million, up from RMB 911.9 million in 2020, with bank borrowings of approximately RMB 340.6 million[108][113] - The net cash inflow from operating activities for the year ended December 31, 2021, was approximately RMB 152.9 million, a significant improvement from a net cash outflow of RMB 345.1 million in 2020[107][112] - The Group's total debt to equity ratio was approximately 110.7% as of December 31, 2021, compared to 89.0% in 2020, indicating increased leverage[114][115] - The Group's net current assets increased by approximately 28.0% to RMB 355.9 million as of December 31, 2021, from RMB 278.0 million in 2020[117] - The Group's administrative expenses for 2021 were approximately RMB 332.7 million, an increase from RMB 294.0 million in 2020, mainly due to higher R&D and employee training costs[100] - The Group's finance costs increased to approximately RMB 77.5 million in 2021 from RMB 40.9 million in 2020, primarily due to higher interest on bank borrowings[101][108] Corporate Governance - The company is committed to maintaining strong corporate governance practices, as highlighted by the composition of its board and committees[146] - The company emphasizes strong corporate governance practices, with multiple committees including Audit, Remuneration, and Nomination Committees[153] - The independent non-executive directors contribute to the company's compliance with the Securities and Futures Ordinance, ensuring regulatory adherence[160] - The company has a diverse board with members holding qualifications from prestigious institutions such as the University of Warwick and Imperial College London[154][155] - The board includes members with extensive experience in corporate governance and financial management, enhancing the company's strategic oversight[159] Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of A% and an expected total revenue of $B million[139] - The company plans to invest D million in research and development for new technologies in the upcoming year[144] - Strategic acquisitions are being considered to enhance the company's technological capabilities and market reach[142] - The company is expanding its market presence in international regions, targeting a C% increase in market share by the end of 2022[141] Employee Management - The construction of self-owned dormitories for staff in Fuzhou commenced in 2020, with some buildings completed and occupied by the end of 2021, aimed at improving staff retention and reducing rental expenses[29] - The Group had 3,210 full-time employees as of December 31, 2021, a decrease from 3,885 employees in 2020[134] - The Group's staff vaccination rate exceeded 85%, effectively controlling secondary risks associated with the Pandemic[55] Environmental and Social Responsibility - The Group's focus on environmental and social impacts, along with ensuring work safety, remains a primary task in its operations[32] - The annual report includes discussions on environmental policies and community investment, reflecting the Group's commitment to sustainability[174] - The Group's management focuses on human resource management and operational assurance systems, with a commitment to corporate social responsibility[167]

Financial Performance - The turnover for the six months ended June 30, 2021, was RMB 3,194,976, representing a 10.1% increase from RMB 2,902,578 in the same period of 2020[12]. - The profit for the period was RMB 8,592, a significant recovery from a loss of RMB 35,021 in the previous year, marking a 124.5% improvement[12]. - Profit attributable to owners of the Company was RMB 10,382, compared to a loss of RMB 28,809 in the prior period, reflecting a 136.0% increase[12]. - Basic and diluted earnings per share were RMB 0.95, a turnaround from a loss of RMB 2.64 per share in the same period last year, indicating a 136.0% improvement[12]. - Gross profit for the Group was approximately RMB 273.6 million, reflecting a year-on-year increase of approximately 47.3% from RMB 185.7 million in 2020[45]. - The total comprehensive income for the period was RMB 8,134, compared to a loss of RMB 37,100 in the same period last year[92]. - The profit before income tax for the period was RMB 24,605, with an income tax expense of RMB 16,013, resulting in a profit for the period of RMB 8,592[148]. - The net profit for the ODM business segment was approximately RMB 66.9 million, a significant increase from RMB 2.3 million in 2020[48]. Market Trends - Global smartphone shipments are forecasted to reach approximately 1.38 billion units in 2021, an increase of 7.7% over 2020, with a projected growth of 3.8% in 2022[13]. - The Chinese smartphone market recorded its first growth in four years at the start of 2021, driven by the acceleration of 5G penetration[14]. - The demand for smartphones is expected to recover further in the second half of 2021, with increased consumer willingness to purchase 5G devices[14]. - The five-year compound annual growth rate for smartphone shipments is expected to be 3.7% through 2025[13]. - The Group anticipates favorable conditions for recovery in the supply and demand of smartphones and tablets as the pandemic stabilizes[15]. Business Segments - The ODM business accounted for approximately 95.1% of the Group's consolidated turnover, with a turnover of approximately RMB 3,037.3 million, up from RMB 2,712.6 million in 2020[30]. - The sales volume of mobile phone batteries increased by approximately 3.2% to approximately 73.3 million pieces, with a turnover of approximately RMB 2,811.9 million, reflecting a year-on-year increase of approximately 14.3%[35]. - The bare battery cell business recorded a turnover of approximately RMB 92.1 million, up from RMB 59.1 million in 2020, accounting for approximately 2.9% of the Group's consolidated turnover[30]. - The ODM business segment generated a turnover of approximately RMB 3,037.3 million, accounting for approximately 95.1% of the Group's consolidated turnover[45]. - Sales from mobile phone batteries amounted to approximately RMB 2,811.9 million, representing about 88.0% of the Group's consolidated turnover, up from 84.8% in 2020[47]. Operational Adjustments - The Company actively monitored changes in customer demand and adjusted production plans accordingly to manage risks associated with the Pandemic[23]. - The Group's capital management strategy includes evaluating the impact of the Pandemic on capital and material reserves to ensure timely payments[23]. - The Group continues to explore cost-efficient financing options to maintain financial flexibility and adequate liquidity for operations and growth plans[61]. - The Group's experienced ODM product development team focuses on optimizing battery solutions to align with customer needs, ensuring high safety standards for battery products[34]. Financial Position - As of June 30, 2021, the Group's cash and cash equivalents amounted to approximately RMB 171.7 million, a decrease from RMB 211.3 million as of December 31, 2020, primarily due to increased cash outflows for construction and equipment acquisition[64]. - The Group's outstanding borrowings increased to approximately RMB 1,149.1 million as of June 30, 2021, compared to RMB 911.9 million as of December 31, 2020, with a debt-to-equity ratio of approximately 111.8%[64]. - The current ratio remained stable at approximately 1.1 times as of June 30, 2021, with current assets of approximately RMB 4,179.7 million and current liabilities of approximately RMB 3,875.9 million[67]. - Net current assets increased by approximately 9.3% to RMB 303.8 million as of June 30, 2021, from RMB 278.0 million as of December 31, 2020[67]. - The Group's consolidated cost of sales amounted to approximately RMB 2,921.4 million, representing a 7.5% increase compared to RMB 2,716.8 million in 2020[55]. Employee and Operational Metrics - As of June 30, 2021, the Group had 3,725 full-time employees, a decrease from 4,457 employees as of June 30, 2020, representing a reduction of approximately 16.4%[73][75]. - Employee costs for the review period amounted to RMB 222.1 million, down from RMB 273.2 million for the six months ended June 30, 2020, indicating a decrease of about 18.7%[73][75]. - The management regularly reviews the remuneration policy and evaluates employee performance to ensure competitive compensation[73][75]. Compliance and Reporting - The review of interim financial information was conducted in accordance with Hong Kong Standard on Review Engagements 2410[81][82]. - The conclusion of the review indicated that the interim financial information is prepared in accordance with IAS 34[83][84]. - The interim financial information was prepared in accordance with International Accounting Standard 34, ensuring compliance with relevant financial reporting standards[119]. - The interim financial information has been prepared in accordance with International Accounting Standards (IAS) 34 and reflects the same accounting policies as the consolidated financial statements for the year ended December 31, 2020[123][125].

Financial Performance - The Group's turnover for the year ended December 31, 2020, was RMB 6,216,571 thousand, representing a decrease of 15.9% from RMB 7,395,203 thousand in 2019[15]. - The Group reported a loss for the year of RMB 57,482 thousand, compared to a profit of RMB 48,696 thousand in the previous year, marking a significant decline of 218.0%[15]. - The loss attributable to owners of the Company was RMB 52,683 thousand, a decrease of 200.3% from a profit of RMB 52,543 thousand in 2019[15]. - Basic and diluted loss per share was RMB (4.83) cents, compared to earnings of RMB 4.82 cents per share in the previous year, reflecting a decline of 200.2%[15]. - The Group recorded consolidated turnover of approximately RMB6,216.6 million, representing a decrease of approximately 15.9% compared to RMB7,395.2 million in 2019[79]. - Gross profit for the Group was approximately RMB385.9 million, a decrease of approximately 27.2% from RMB530.5 million in 2019[79]. - EBITDA for the year was approximately RMB81.1 million, a decrease of approximately 55.7% from RMB183.1 million in 2019[79]. - The overall gross profit margin of the Group decreased to approximately 6.2% in 2020, down from 7.2% in 2019[82]. - The Group recorded a loss attributable to owners of the Company of approximately RMB52.7 million in 2020, compared to a profit of RMB52.5 million in 2019, primarily due to decreased sales volume and gross profit margins in both the ODM and bare battery cell segments[89]. Business Operations - The Group focuses on R&D and application of lithium-ion battery technology, serving well-known international and domestic mobile communication and Internet technology companies[7]. - The main production base is located in Fuzhou, PRC, utilizing industry-leading automated equipment and strict quality control systems[10]. - The Group's main business, ODM, focused on lithium-ion battery production for 3C consumer electronics and smart hardware, establishing a major supplier position in the market[27]. - The Group's production capacity was fully utilized, prompting the expansion of the industrial park in Fuzhou, completed in April 2020, to enhance production capacity[28]. - New production facilities are designed to optimize production processes, improve quality, and expand delivery capacity[28]. - The Group's ODM business focuses on lithium-ion battery production, primarily for smartphones and consumer electronics, establishing a strong market position as a key supplier[30]. - The Group's ODM business customers are expanding into the Indian mobile phone market, leveraging India's large population for growth potential[27]. - The Group aims to enhance its competitive advantage in the ODM market by increasing shipment scale and operating efficiency through resource integration and cost control[72]. - The Group plans to extend the application of lithium-ion batteries to other fields to create greater development space[72]. Market Trends - In 2020, global smartphone shipments declined by 11% year-on-year to 1.25 billion units, marking the largest decline in history due to the COVID-19 pandemic[43]. - Looking ahead, global smartphone shipments are expected to rebound to 1.36 billion units in 2021, representing a 9% year-on-year increase, driven by recovery in demand and 5G infrastructure promotion[44]. - The pandemic has accelerated changes in consumer behavior, increasing demand for smart electronic products and related accessories[38]. - The demand for lithium-ion batteries is anticipated to grow due to the upcoming 5G upgrade cycle and increased consumer interest in smart devices[46]. Financial Position - Cash and cash equivalents held by the Group as of December 31, 2020, were approximately RMB211.3 million, a decrease of approximately RMB194.9 million from RMB406.2 million in 2019[94]. - The Group recorded a net cash outflow from operating activities of approximately RMB345.1 million for the year ended December 31, 2020, compared to a net cash inflow in 2019[94]. - As of December 31, 2020, the Group's outstanding borrowings amounted to approximately RMB911.9 million, an increase of 53.9% from RMB592.1 million in 2019[98]. - The total debt to equity ratio was approximately 89.0% as of December 31, 2020, compared to 55.1% in 2019[98]. - The Group's net current assets decreased by approximately 38.3% to RMB278.0 million from RMB450.3 million as of December 31, 2019[98]. - Net assets as of December 31, 2020, were approximately RMB1,024.5 million, representing a decrease of approximately 4.7% from RMB1,074.5 million in 2019[98]. Employee and Management - As of December 31, 2020, the Group had 3,885 full-time employees, a decrease from 4,129 in 2019[133][134]. - The management regularly reviews the remuneration policy, ensuring employee salaries are aligned with market standards and performance[133][134]. - The Group constructed two new factories at a total cost of approximately RMB99.3 million to enhance production capacity, completed in April 2020[102]. - The construction of staff dormitory and related facilities cost approximately RMB248.7 million, aimed at improving living conditions for employees[103]. Governance and Shareholder Information - The Group's distributable reserves as of December 31, 2020, amounted to approximately RMB 906.2 million, a decrease from RMB 951.1 million in 2019[178]. - The Board has decided not to recommend any final dividend for the year ended December 31, 2020, to preserve cash for working capital requirements[169]. - The share option scheme adopted on June 17, 2019, allows for the granting of options to eligible participants, with a total of 109,000,124 shares available for options, representing approximately 10% of the total shares in issue[187][188]. - As of December 31, 2020, no share options had been granted or remained outstanding under the scheme during the review period[188]. - The Group's financial year covered the period from January 1, 2020, to December 31, 2020[166].

Financial Performance - For the six months ended June 30, 2020, SCUD Group reported a turnover of RMB 2,902,578, a decrease of 12.6% compared to RMB 3,319,146 in the same period of 2019[11]. - The company recorded a loss for the period of RMB (35,021), a significant decline from a profit of RMB 13,959 in the prior year, representing a 350.9% decrease[11]. - The loss attributable to owners of the company was RMB (28,809), down 289.2% from a profit of RMB 15,228 in the previous year[11]. - Basic and diluted losses per share were RMB (2.64), a decrease of 288.6% compared to earnings of RMB 1.40 per share in the same period last year[11]. - The Group recorded a consolidated turnover of approximately RMB2,902.6 million for the first half of 2020, a decrease of approximately 12.6% compared to RMB3,319.1 million in the same period of 2019[29]. - The gross profit for the Group was approximately RMB185.7 million, down approximately 21.8% from RMB237.4 million in the first half of 2019[42]. - The Group reported a loss attributable to owners of approximately RMB28.8 million, compared to a profit of RMB15.2 million in the same period of 2019[42]. - The Group's overall gross profit margin decreased to approximately 6.4% from 7.2% in 2019, attributed to increased material costs[54]. - The total comprehensive income for the period was RMB (37,100), compared to RMB 13,621 in the previous year[93]. Market Conditions - Global smartphone shipments are expected to decline by nearly 12% to approximately 1.2 billion units in 2020 due to the COVID-19 pandemic, with a 16.0% year-on-year decrease in Q2 2020[14]. - The demand for smartphones is anticipated to further decline in the second half of 2020, with reduced consumer willingness to purchase 5G phones[15]. - The pandemic has tested the company's crisis management capabilities, prompting it to take effective measures in response to the situation[27]. - The company anticipates that the smartphone and tablet supply-demand conditions will improve as the pandemic stabilizes, driven by increased online activities[19]. Operational Challenges - The production plant for the ODM business in Fujian resumed operations in early February 2020, but faced challenges in logistics and production resumption due to pandemic control measures[19]. - The pandemic led to a significant decrease in the volume of bare battery cells ordered in the second quarter of 2020, impacting global business activities[22]. - The Group's major customers resumed work in mid-February 2020, but the pandemic's global spread caused interruptions in the supply chain and order cancellations[20]. - The company has been closely monitoring the resumption of work and evaluating logistics, production materials, and epidemic prevention measures to minimize operational impacts[23]. - The company is focusing on balancing purchase and sales orders to control inventory growth and is monitoring changes in orders from major customers[24]. Financial Position - Cash and cash equivalents decreased to approximately RMB 103.4 million as of June 30, 2020, down from RMB 406.2 million at December 31, 2019, mainly due to a net cash outflow from operating activities of approximately RMB 559.6 million[64]. - The Group's outstanding borrowings increased to approximately RMB 730.0 million as of June 30, 2020, compared to RMB 592.1 million at December 31, 2019, with a total debt to equity ratio of approximately 70.4%[64]. - The current ratio remained stable at approximately 1.1 times as of June 30, 2020, with current assets of approximately RMB 3,636.6 million and current liabilities of approximately RMB 3,312.6 million[67]. - Net current assets decreased by approximately 28.0% to RMB 324.0 million as of June 30, 2020, from RMB 450.3 million at December 31, 2019[67]. - The Group's net assets as of June 30, 2020, were approximately RMB 1,037.4 million, a decrease of approximately RMB 37.1 million from the balance as of December 31, 2019[67]. Employee and Workforce - The Group had 4,457 full-time employees as of June 30, 2020, down from 4,940 employees on June 30, 2019, indicating a reduction in workforce[74]. - The Group's remuneration policies ensure that employee salaries are aligned with market standards and performance-related incentives are provided[74]. - The Group has participated in social insurance plans in accordance with PRC laws, including pension and medical insurance[74]. Investments and Future Plans - The Group did not hold any significant investments or make any material acquisitions or disposals of subsidiaries during the Review Period[72][75]. - The Group did not have any future plans for material investments or capital assets as of June 30, 2020[73]. - The Group's capital commitments amounted to approximately RMB 176.8 million, a significant increase from RMB 24.2 million as of December 31, 2019, primarily for the construction of new factories and acquisition of equipment[69]. Accounting and Compliance - The interim financial information was prepared in accordance with International Accounting Standard 34 and was authorized for issue by the board of directors on August 31, 2020[107]. - The interim financial information is presented in Chinese Renminbi (RMB) and covers the six months ended June 30, 2020[124]. - The Group's management has not identified any significant changes in accounting policies compared to the 2019 annual financial statements, except for those related to COVID-19[134]. - The Group's interim financial information is unaudited but has been reviewed by BDO Limited in accordance with relevant standards[120].

Financial Performance - The Group's turnover for the year ended December 31, 2019, was RMB 7,395,203 thousand, representing a 6.2% increase from RMB 6,962,078 thousand in 2018[11]. - Profit for the year decreased by 49.3% to RMB 48,696 thousand, down from RMB 96,084 thousand in 2018[11]. - Profit attributable to owners of the Company was RMB 52,543 thousand, a decrease of 43.7% from RMB 93,274 thousand in the previous year[11]. - Basic and diluted earnings per share fell to 4.82 RMB cents, down 43.7% from 8.56 RMB cents in 2018[11]. - The Group's consolidated turnover for 2019 was approximately RMB 7,395.2 million, representing an increase of approximately 6.2% compared to RMB 6,962.1 million in 2018[47]. - The profit attributable to owners of the Company for 2019 was approximately RMB 52.5 million, down from RMB 93.3 million in 2018[47]. - Basic and diluted earnings per share for 2019 were approximately RMB 4.82 cents, compared to RMB 8.56 cents in 2018[47]. - Gross profit for the Group was approximately RMB 530.5 million, a decrease of approximately 5.2% compared to 2018, resulting in a gross profit margin of approximately 7.2%[79][70]. - The overall gross profit margin for the Group in 2019 decreased to approximately 7.2% from 8.0% in 2018, with the ODM business margin at 6.8% (2018: 8.0%), own-brand business margin at 17.7% (2018: 10.0%), and bare battery cell business margin at 17.0% (2018: 14.8%)[81][86]. Business Operations - The Group has established a solid industry position in the ODM mobile phone battery manufacturing and sales sector, capitalizing on the transition from feature phones to smartphones[3]. - The main production base is located in Fuzhou, PRC, equipped with advanced facilities and a modernized manufacturing system[7]. - The Group emphasizes strict quality control and environmental management, ensuring high-quality production processes[7]. - The Group's lithium-ion battery products are recognized for their high safety and reliability, supported by a self-developed power management system[5]. - The Group aims to expand its market presence by entering supply chain systems of well-known mobile communication and internet technology companies[3]. - The comprehensive industrial chain for battery production provides the Group with significant production advantages in the lithium-ion battery market[8]. - 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 in the market[24]. - The Group officially terminated its own-brand business under the "SCUD" brand at the end of 2019 to concentrate resources on the growing ODM business[25]. - A battery assembly plant was established in India through a joint venture to provide mobile phone battery and power bank assembly services, enhancing competitive advantage in the Indian market[26]. - The Group implemented an expansion plan for the Scud Battery Industrial Park in mid-2019 to increase production capacity and optimize production processes[25]. - The Group focused on improving quality control systems to ensure all manufactured batteries meet high safety standards[30]. - The automated production line was upgraded to alleviate cost pressures faced by the consumer electronics manufacturing industry[30]. - The Group aims to provide high-quality and diversified battery cell options to meet customer needs and maintain steady growth in the ODM business[30]. - The ODM business is expected to benefit from the growth potential in the Indian mobile phone market due to its large population[26]. - ODM mobile phone battery sales volume decreased by approximately 6.2% year-on-year to approximately 176.8 million pieces, while turnover increased by approximately 0.5% year-on-year to approximately RMB6,044.8 million[52]. - ODM mobile phone batteries represented approximately 88.0% of the ODM business turnover, while ODM power banks contributed approximately RMB787.7 million, representing approximately 11.5% of the turnover[52]. - The net profit of the ODM business recorded approximately RMB96.8 million, a decrease from RMB143.3 million in the previous year[52]. - The own-brand business recorded a turnover of approximately RMB44.7 million, representing a decrease of approximately 29.3% year-on-year[61]. - The bare battery cell business recorded a turnover of approximately RMB284.5 million, representing an increase of approximately 23.0% year-on-year[62]. Financial Position and Ratios - Cash and cash equivalents as of December 31, 2019, were approximately RMB406.2 million, an increase of approximately RMB223.7 million year-on-year[90]. - The Group's borrowings as of December 31, 2019, amounted to approximately RMB592.1 million, up from RMB400.0 million in 2018, with a total debt to equity ratio of approximately 55.1%[93]. - The current ratio as of December 31, 2019, was approximately 1.1 times, down from 1.2 times in 2018, with current assets of approximately RMB4,547.2 million and current liabilities of approximately RMB4,097.0 million[94]. - Trade receivable turnover days increased to approximately 106 days in 2019 from 98 days in 2018, while inventory turnover days decreased to 29 days from 33 days in the same period[94]. - As of December 31, 2019, the Group's net current assets were approximately RMB 450.3 million, a decrease of approximately 24.4% from RMB 595.7 million as of December 31, 2018[95]. - The Group's net assets increased to approximately RMB 1,074.5 million as of December 31, 2019, representing a growth of approximately 4.8% from RMB 1,025.4 million as of December 31, 2018[96]. - The total liabilities to equity ratio increased to approximately 55.1% as of December 31, 2019, compared to 39.0% as of December 31, 2018[96]. - The average turnover days for trade receivables increased to approximately 106 days in 2019 from 98 days in 2018[97]. Corporate Governance and Management - Significant resources were invested in improving corporate governance and risk management systems to enhance shareholder confidence and safeguard interests[31]. - The Group has adopted a share option scheme to reward eligible participants for their contributions, effective June 17, 2019[120]. - The Group's employee remuneration is based on personal performance, professional qualifications, and market trends, ensuring compliance with market standards[120]. - The corporate governance practices adopted by the company are reported on pages 50 to 76 of the annual report[197]. - The Company has no service contracts for directors that cannot be terminated within one year without compensation, other than statutory compensation[170]. - The total remuneration for the Directors and the five highest-paid employees for the year ended December 31, 2019, is detailed in Note 10 of the consolidated financial statements[200]. Future Outlook and Strategy - The Group aims to extend the application of lithium-ion batteries to other fields to create greater development space[60]. - The Group plans to enhance operational efficiency and expand business scale by integrating resources and constructing new production plants[60]. - The Group is focusing on the application of lithium-ion batteries in new industries and emphasizes the safety of battery products[35]. - The expected demand for lithium-ion batteries is anticipated to increase with the rollout of 5G mobile phones and the subsequent market changes[42]. - The Group aims to provide safe, portable, and durable green energy products, leveraging quality assurance and technology development capabilities[37]. Shareholder Information - The Company's distributable reserves as of December 31, 2019, amounted to approximately RMB 951.1 million, an increase from RMB 903.8 million in 2018, representing a growth of about 5.3%[164]. - The Board has decided not to recommend any final dividend for the year ended December 31, 2019, to preserve cash for working capital requirements[162]. - As of December 31, 2019, the total number of issued shares of the company was 1,090,001,246[192]. - Swift Joy Holdings Limited held 403,770,000 shares, representing 37.04% of the issued share capital[188]. - Right Grand Holdings Limited owned 110,568,000 shares, accounting for 10.14% of the issued share capital[189]. - Fang Jin had an interest in controlled corporations totaling 532,338,000 shares, which is 48.84% of the issued share capital[190]. - The company must obtain prior approval from shareholders for options granted that exceed HK$5,000,000[181]. - The exercise price of options will not be less than the higher of the closing price on the offer date or the average closing price for the preceding five business days[181]. - The board of directors can determine the minimum holding period for options before they can be exercised[181].

Financial Performance - The Group recorded a consolidated turnover of approximately RMB3,319.1 million for the six months ended June 30, 2019, representing an increase of approximately 12.2% compared to RMB2,957.4 million in the same period of 2018[21]. - Profit attributable to owners of the Company decreased by approximately 39.1% to RMB15.2 million, down from RMB25.0 million in the corresponding period of 2018[21]. - Basic and diluted earnings per share were approximately RMB1.40 cents, a decrease of 38.9% from RMB2.29 cents in 2018[13]. - The gross profit for the Group was approximately RMB237.4 million, a decrease of approximately 9.3% compared to RMB261.8 million in the same period of 2018[36]. - The overall gross profit margin for the Group decreased to approximately 7.2% from 8.9% in 2018, primarily due to increased material and labor costs[50]. - The ODM business's gross profit margin was approximately 6.7%, down from 8.8% in 2018[51]. - The Group's net profit attributable to owners decreased by approximately 39.1% to RMB15.2 million in 2019 from RMB25.0 million in 2018[23]. - The profit for the period attributable to owners of the Company was RMB15,228, a decrease of 39.1% compared to RMB24,991 in the previous year[86]. Business Segments - The ODM business generated a turnover of approximately RMB3,089.1 million, accounting for approximately 93.1% of the Group's consolidated turnover[21]. - The own-brand business recorded a turnover of approximately RMB16.6 million, maintaining a 0.5% share of the Group's consolidated turnover[21]. - The bare battery cell business achieved a turnover of approximately RMB132.2 million, accounting for approximately 4.0% of the Group's consolidated turnover, up from 3.7% in 2018[21]. - Sales volume of ODM mobile phone batteries decreased by approximately 13.9% to 76.6 million pieces, while turnover increased by approximately 1.0% to RMB2,644.1 million[27]. - ODM mobile phone batteries contributed approximately 85.6% of the turnover of the ODM business in 2019[27]. Research and Development - SCUD Group is positioned as an industry leader in lithium-ion battery module manufacturing, with significant R&D capabilities and automated production ensuring product quality and safety[15]. - The Group's focus on independent R&D has led to mastery of core technologies in lithium-ion battery manufacturing[15]. - The Group plans to invest in R&D for lithium-ion battery applications in new industries to drive future growth[33]. Production and Capacity - The Group is constructing two new factories in Fuzhou with a total construction cost of approximately RMB99.3 million to enhance production capacity[35]. - The Group is constructing two new factories to optimize production processes and improve production quality, with costs of approximately RMB57 million and RMB42.3 million respectively[37]. Financial Position - Cash and cash equivalents decreased to approximately RMB153.8 million as of June 30, 2019, down from RMB182.5 million at the end of 2018, primarily due to increased cash outflow from financing activities[58]. - Outstanding borrowings as of June 30, 2019, amounted to approximately RMB360.3 million, down from RMB400.0 million at the end of 2018[58]. - The total debt to equity ratio was approximately 34.8% as of June 30, 2019, compared to 39.0% at the end of 2018[58]. - The Group's net current assets decreased by approximately 8.7% to RMB543.9 million as of June 30, 2019, from RMB595.7 million as of December 31, 2018[60]. - Total current assets decreased to RMB 3,937,539,000, down 12.3% from RMB 4,487,697,000 at the end of 2018[94]. - Total current liabilities decreased to RMB 3,393,612,000, down 12.8% from RMB 3,891,975,000 at the end of 2018[94]. - Total equity increased to RMB 1,035,733,000, up 1.2% from RMB 1,025,437,000 at the end of 2018[97]. Expenses and Costs - Selling and distribution expenses increased to approximately RMB53.2 million in 2019, accounting for 1.6% of consolidated turnover, compared to RMB44.1 million and 1.5% in 2018[52]. - Administrative expenses rose to approximately RMB159.6 million in 2019, representing 4.8% of consolidated turnover, up from RMB149.2 million and 5.0% in 2018[54]. - The Group's consolidated cost of sales increased to approximately RMB3,081.7 million, an increase of about 14.3% compared to RMB2,695.6 million in 2018[47]. Joint Ventures and Investments - A joint venture was formed with two independent third parties to provide mobile phone battery cell and power bank assembly services in India, with Prime Power owning 50% of the joint venture[67]. - The joint venture partners will contribute a total of HK$50.0 million in cash for the share subscriptions in proportion to their respective shareholdings[68]. Employee Information - As of June 30, 2019, the Group had 4,940 full-time employees, an increase from 3,353 employees as of June 30, 2018[74]. - The Group has not experienced any material difficulties due to fluctuations in currency exchange rates, primarily conducting transactions in Renminbi[64]. Financial Reporting and Compliance - The financial statements were authorized for issue on August 30, 2019, reflecting the Group's commitment to timely reporting[106]. - The Group adopted IFRS 16 Leases for the first time, which has impacted the financial statements for the period ending June 30, 2019[114]. - The interim financial statements are presented in Chinese Renminbi (RMB) and are unaudited, having been reviewed by BDO Limited[117]. - The financial statements include significant events and transactions that are crucial for understanding changes in the Group's financial position since the 2018 annual financial statements[117]. - The Group has disclosed the significant judgments and estimates used in preparing the financial statements, which may lead to actual results differing from those estimates[114].

Financial Performance - The turnover for the year ended December 31, 2018, was RMB 6,962,078 thousand, representing a 20.0% increase from RMB 5,801,566 thousand in 2017[12] - Profit for the year increased to RMB 96,084 thousand, a significant rise of 383.3% compared to RMB 19,881 thousand in the previous year[12] - Profit attributable to owners of the Company was RMB 93,274 thousand, up 341.5% from RMB 21,125 thousand in 2017[12] - Basic and diluted earnings per share rose to 8.56 RMB cents, reflecting a 341.2% increase from 1.94 RMB cents in the prior year[12] - The Group's consolidated turnover for the year 2018 was approximately RMB 6,962.1 million, representing a 20.0% increase compared to RMB 5,801.6 million in 2017[51] - Net profit attributable to owners of the company was approximately RMB 93.3 million, a significant increase of approximately 341.5% compared to RMB 21.1 million in 2017[73] - The Group's EBITDA for the year was approximately RMB 161.0 million, representing an increase of approximately 135.7% compared to RMB 68.3 million in 2017[70] - Gross profit for the year was approximately RMB 559.7 million, representing a year-on-year increase of approximately 36.8% from RMB 409.3 million in 2017[73] Business Segments - The ODM business generated a turnover of approximately RMB 6,460.7 million, accounting for approximately 92.8% of the Group's consolidated turnover[51] - Sales of mobile phone batteries reached approximately RMB 6,028.9 million, representing about 86.6% of the Group's consolidated turnover, up from 81.8% in 2017[72] - The own-brand business recorded a turnover of approximately RMB 63.2 million, a decrease of approximately 60.9% year-on-year from RMB 161.7 million in 2017[77] - The bare battery cell business generated a turnover of approximately RMB 231.3 million, down approximately 6.8% from RMB 248.2 million in 2017[63] - The ODM mobile phone batteries recorded sales volume of approximately 188.5 million pieces, an increase of approximately 15.4% from 163.3 million pieces in 2017[57] Market Position and Strategy - The Group has established a solid industry position in the ODM mobile phone battery market, capitalizing on growth opportunities in China[5] - Major customers include well-known brands such as Huawei, Xiaomi, OPPO, Vivo, Lenovo, Samsung, and ZTE, contributing to stable market shares[6] - The Group's focus on R&D and application of lithium-ion batteries has led to high safety and reputation in the industry[5] - The Group plans to invest more resources in R&D and production of high-quality lithium-ion battery products to strengthen its market presence[36] - The Group aims to ensure all manufactured batteries meet high safety standards while expanding into new industries and applications for lithium-ion batteries[39] Operational Efficiency and Management - The Group focused on enhancing its quality control system to improve production efficiency and ensure all manufactured batteries meet high safety standards[30] - The Group upgraded its automated production lines to alleviate operating cost pressures in the consumer electronics manufacturing industry[30] - The implementation of an ERP system allows for centralized management and recording of data from major subsidiaries, improving operational efficiency[35] - The Group established an internal risk management department to enhance corporate governance and improve internal control systems[35] Financial Stability and Assets - Cash and cash equivalents as of December 31, 2018, amounted to approximately RMB 182.5 million, an increase of approximately 36.2 million year-on-year, attributed to higher operating cash inflow[98][102] - The net cash inflow from operating activities for the year ended December 31, 2018, was approximately RMB 392.9 million, representing an increase of RMB 260.4 million compared to 2017[98][102] - The group's total debt to equity ratio was approximately 39.0% as of December 31, 2018, down from 44.9% in 2017, indicating improved financial stability[105][108] - The group's net current assets increased by approximately 23.3% to RMB 595.7 million as of December 31, 2018, compared to RMB 483.0 million in 2017[107] Governance and Leadership - The Group's Vice President, Feng Ming Zhu, is responsible for strategy development and daily operations management[139] - Dr. Ho, the non-executive Chairman, has over 50 years of experience in engineering and has managed several mega-sized projects[140] - Hou Li, a non-executive Director, has over 20 years of experience in legal and corporate governance matters[145] - Heng Ja Wei Victor, an independent non-executive Director, is the Chairman of the Audit Committee and has a background in electronic engineering and computer science[150] - The Group's management team includes a Chief Executive Officer and various directors, with changes in leadership occurring on September 27, 2018[194] Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of A% and an expected EBITDA margin of B%[155] - The management team remains optimistic about future growth, citing strong market demand and a robust pipeline of products[155] - Strategic acquisitions are being considered to enhance the company's capabilities and market reach, with potential targets identified[155] - Investment in R&D has increased by E%, focusing on developing cutting-edge technologies to stay competitive[155]