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].

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].