Financial Performance - For the year ended December 31, 2024, the Group reported revenue of RMB 2,917,434,000, an increase of 3.36% from RMB 2,822,921,000 in 2023[12] - Gross profit for the year was RMB 257,769,000, a decrease of 13.94% compared to RMB 299,588,000 in 2023[12] - Profit for the year attributable to owners of the Company was RMB 16,341,000, down 49.6% from RMB 32,369,000 in 2023[12] - Total assets as of December 31, 2024, were RMB 3,395,127,000, a decrease of 11.14% from RMB 3,822,154,000 in 2023[14] - Total liabilities decreased to RMB 3,028,593,000 from RMB 3,470,940,000 in 2023, reflecting a reduction of 12.74%[14] - The Group's equity attributable to owners increased to RMB 368,141,000 from RMB 352,085,000 in 2023, reflecting a growth of 4.1%[14] - Net profit after tax decreased by approximately 49.7% to RMB15.6 million for the year ended December 31, 2024, down from RMB31.0 million in 2023 due to reduced gross profit margin[24] - The group's overall gross profit margin decreased, impacting net profit, which fell by approximately 49.7% to RMB15.6 million for the year ended December 31, 2024, from RMB31.0 million for the year ended December 31, 2023[38] Revenue Breakdown - Total revenue for the Group reached approximately RMB2,917.4 million for the year ended 31 December 2024, an increase of approximately 3.3% from RMB2,822.9 million in 2023[24] - Revenue from China increased by 33.6% to RMB2,328.5 million for the year ended December 31, 2024, compared to RMB1,742.4 million in 2023[20] - Revenue from mobile phones decreased by 11.4% to RMB1,894.4 million for the year ended December 31, 2024, down from RMB2,137.7 million for the year ended December 31, 2023, primarily due to decreased smartphone sales to India and Pakistan[43] - Revenue from IoT related products increased by 70.0% to RMB822.7 million for the year ended December 31, 2024, up from RMB483.8 million for the year ended December 31, 2023, attributed to increased sales orders from major customers in China[45] - Revenue from India decreased by 57.7% to RMB365.2 million for the year ended December 31, 2024, down from RMB863.6 million for the year ended December 31, 2023, primarily due to reduced demand for smartphones[49] - The revenue contribution from smartphones dropped to 50.0% of total revenue in 2024, down from 64.3% in 2023[41] - The revenue contribution from IoT related products increased to 28.2% of total revenue in 2024, up from 17.1% in 2023[41] Market Focus and Strategy - The Group continues to focus on research and development, manufacturing, and sales of mobile phones and IoT-related products targeting emerging markets[18] - The Company aims to enhance its market position as a leading ODM mobile phone supplier in China[18] - Future strategies include expanding product offerings and enhancing technological capabilities to meet market demands[18] - The Group anticipates a compound annual growth rate of 13% in China's IoT spending over the next five years[22] - The Group plans to enhance its research and development capabilities and diversify its geographical locations to capture market opportunities[28] - The integration of artificial intelligence into smartphones and the rapid deployment of 5G networks are expected to drive demand for smartphones and IoT products[27] - The Group strategically accepted a reduced gross profit margin to secure future business opportunities from major customers[20] - The Group's focus on emerging markets is driven by high population and growing demand for mobile phones[34] Operational Efficiency and Management - The Company is committed to improving operational efficiency and exploring potential mergers and acquisitions to drive growth[18] - The Group recorded a negative cash flow from operating activities of RMB 27.1 million for the year ended 31 December 2024, compared to a positive cash flow of RMB 56.9 million in 2023[85][87] - The Group's total staff costs for the year ended December 31, 2024, amounted to RMB 188.8 million, an increase from RMB 145.0 million in 2023[109] - As of December 31, 2024, the Group had 1,414 employees, an increase from 1,328 employees as of December 31, 2023[109] - The Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the year ended December 31, 2024[100] Corporate Governance - The company is committed to establishing good corporate governance practices to ensure transparency and accountability to shareholders[162] - The company has adopted a set of corporate governance practices that align with the Corporate Governance Code since November 13, 2019, and has complied with most provisions for the year ended December 31, 2024[168] - The roles of chairman and chief executive officer are currently held by Mr. Li Chengjun, which the board believes ensures consistent leadership and effective strategic planning[169] - The Board consists of six executive Directors and five independent non-executive Directors as of December 31, 2024[180] - The Company emphasizes the importance of separating the roles of Chairman and CEO, although currently, the same individual holds both positions[177] - The Board oversees the Group's business, strategic decisions, and performance, ensuring decisions are made in the best interests of the Company and its shareholders[188] Leadership and Experience - Mr. Li Chengjun, the CEO, has over 20 years of experience in the mobile communications industry, previously holding senior management positions at Huawei and SIM Technology[118] - Mr. Xiong Bin, the Vice Chairman, has over 15 years of experience in mobile communications, previously managing overseas sales at Amoi Electronics and SIM Technology[122] - Mr. Guo Qinglin, an executive director, has approximately 13 years of experience in the mobile communications industry, previously managing overseas sales at Amoi Electronics[125] - The executive team is composed of experienced professionals with backgrounds in finance, sales, and technology, enhancing the Group's market position[122] - The management team has a strong background in telecommunications and technology, which supports the company's strategic direction[130]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 SPROCOMM INTELLIGENCE LIMITED （股份代號：1401） （於開曼群島註冊成立之有限公司） 截至二零二四年十二月三十一日止年度的 年度業績公告 財務摘要 截至十二月三十一日止年度 二零二四年 二零二三年 收 益 （人 民 幣 千 元） 2,917,434 2,822,921 毛 利 （人 民 幣 千 元） 257,769 299,588 毛利率 (%) 8.8 10.6 年內溢利淨額 （人 民 幣 千 元） 15,609 31,016 每股盈利 －基 本 及 攤 薄 （人 民 幣 分） 1.63 3.24 於二零二四年十二月三十一日 | 二零二四年 | 二零二三年 | 人民幣千元 | 附 | 註 | 人民幣千元 | | | | | --- | --- | --- | --- | --- | --- | --- | --- ...

Sprocomm Intelligence Limited (Incorporated in the Cayman Islands with limited liability 於 例 曼 群 島 註 冊 成 立 的 有 限 公 司 ) (Stock Code 股份代號 :1401) mmm 2024 中報 INTERIM REPORT CONTENTS 目錄 Corporate Information 公司資料 2 業務回顧及前景 5 Business Review and Prospects 管理層討論及分析 7 Management Discussion and Analysis Condensed Consolidated Statement of Prot or Loss and 16 Other Comprehensive Income 簡明綜合損益及其他全面收益表 簡明綜合財務狀況表 18 Condensed Consolidated Statement of Financial Position 簡明綜合權益變動表 20 Condensed Consolidated Statement of ...

Financial Performance - Revenue for the six months ended June 30, 2024, reached RMB 1,256,912 thousand, a significant increase from RMB 806,946 thousand in the same period of 2023, representing a growth of 55.5%[1] - Gross profit for the same period was RMB 109,926 thousand, with a gross margin of 8.7%, down from a gross margin of 13.0% in 2023[2] - Net profit for the six months ended June 30, 2024, was RMB 9,222 thousand, compared to RMB 8,710 thousand in 2023, reflecting a year-on-year increase of 5.9%[2] - Other income and gains increased to RMB 40,978 thousand from RMB 31,383 thousand, marking a growth of 30.5%[2] - The company reported a total comprehensive income of RMB 9,299 thousand for the period, compared to RMB 7,825 thousand in the previous year, an increase of 18.9%[2] - The group reported a net profit of RMB 9,856,000 for the six months ended June 30, 2024, compared to RMB 9,511,000 in 2023, showing a slight increase of about 3.6%[18] - Total revenue increased by approximately 55.8% from RMB 806.9 million for the six months ended June 30, 2023, to RMB 1,256.9 million for the six months ended June 30, 2024[32] - Net profit for the six months ending June 30, 2024, was RMB 9.2 million, compared to RMB 8.7 million for the same period in 2023[44] Revenue Breakdown - Revenue from mobile phones reached RMB 799,590,000 in 2024, up from RMB 567,730,000 in 2023, indicating a growth of about 40.7%[9] - Revenue from IoT-related products increased to RMB 362,887,000 in 2024, compared to RMB 153,034,000 in 2023, marking a growth of approximately 137.3%[9] - The group's external customer revenue from China was RMB 976,650,000 in 2024, a substantial increase from RMB 354,891,000 in 2023, reflecting a growth of around 175.5%[13] - Smartphone revenue rose by 40.8% from RMB 567.7 million to RMB 799.6 million, primarily due to increased sales in China and the United States, despite a decrease in India[32] - Internet of Things (IoT) related product revenue surged 1.4 times from RMB 153.0 million to RMB 362.9 million, driven by increased sales orders from major customers in China[33] - Revenue from China increased 1.8 times from RMB 354.9 million to RMB 976.7 million, attributed to higher sales orders for smartphones and IoT products[34] - Revenue from India decreased by 51.8% from RMB 381.1 million to RMB 183.8 million, mainly due to reduced demand for smartphones[35] Expenses and Costs - Research and development expenses decreased to RMB 60,167 thousand from RMB 65,555 thousand, indicating a reduction of 8.5%[2] - The total employee costs for the period were RMB 93,984,000, up from RMB 71,008,000 in 2023, representing an increase of approximately 32.3%[16] - Sales expenses rose by 5.0% from RMB 23.9 million to RMB 25.1 million for the six months ending June 30, 2024, mainly due to increased marketing expenses to strengthen the customer base[39] - Administrative and other expenses increased by 35.5% from RMB 23.4 million to RMB 31.7 million for the six months ending June 30, 2024, primarily due to an increase in employee numbers and severance costs[40] - R&D expenses decreased by 8.2% from RMB 65.6 million to RMB 60.2 million for the six months ending June 30, 2024, mainly due to a reduction in the number of R&D projects and material costs[41] - Financing costs surged 1.7 times from RMB 7.6 million to RMB 20.8 million for the six months ending June 30, 2024, primarily due to increased interest on discounted bills and factoring loans[42] - Income tax expenses decreased by 40.3% from RMB 6.7 million to RMB 4.0 million for the six months ending June 30, 2024, mainly due to a reduction in taxable profits, with an effective tax rate of 30.0%[43] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 2,800,759 thousand, down from RMB 3,711,239 thousand at the end of 2023[3] - Current liabilities decreased to RMB 2,516,803 thousand from RMB 3,438,461 thousand, showing a reduction of 26.8%[3] - Trade receivables and notes receivable totaled approximately RMB 489.3 million as of June 30, 2024, down from RMB 808.8 million as of December 31, 2023, representing a decrease of about 39.4%[21] - The company reported trade payables and notes payable of RMB 2,257.975 million as of June 30, 2024, a decrease from RMB 3,158.712 million as of December 31, 2023, indicating a reduction of approximately 28.5%[25] - The total amount of trade receivables and notes receivable generated from customer contracts was approximately RMB 492.7 million as of June 30, 2024, compared to RMB 814.7 million as of December 31, 2023, reflecting a decrease of about 39.5%[21] - As of June 30, 2024, the group's net current assets amounted to RMB 284.0 million, an increase from RMB 272.8 million as of December 31, 2023[50] - Cash and cash equivalents were RMB 29.7 million as of June 30, 2024, down from RMB 68.0 million as of December 31, 2023[50] - The group's current ratio was 1.1 as of June 30, 2024, compared to 1.2 as of December 31, 2023[50] - Total borrowings were RMB 135.6 million as of June 30, 2024, a decrease from RMB 154.4 million as of December 31, 2023[50] Shareholder Information - As of June 30, 2024, the company has major shareholders holding significant stakes: Li Chengjun holds 369,967,204 shares (37.0%) and Xiong Bin holds 305,032,256 shares (30.5%) in the company[60] - JZ Capital Limited, controlled by Gao Xuanting, holds 65,000,540 shares, representing 6.5% of the company[63] - The company has not disclosed any interests or positions in competitive businesses by directors or major shareholders as of June 30, 2024[67] - Li Chengjun and Xiong Bin are also recognized as beneficial owners through family trusts, holding 100% interests in their respective companies[61] - The company has not established any arrangements that would allow directors to benefit from purchasing shares or bonds of the company[62] - No significant changes in shareholding percentages were reported for the major shareholders as of June 30, 2024[63] Corporate Governance - The company has complied with the corporate governance code since the listing date, except for the separation of roles between the Chairman and CEO[73] - The audit committee has reviewed the interim results for the six months ending June 30, 2024, and discussed relevant financial matters with the board[71] - The company has adopted the standard code of conduct for directors' securities transactions and confirmed compliance as of June 30, 2024[72] Future Outlook - The company plans to cautiously develop its business and gradually increase production capacity to enhance R&D capabilities and diversify its product offerings[30] - The company aims to strengthen its marketing efforts to capture potential market opportunities in the rapidly evolving 5G telecommunications landscape[30] - The company is focusing on expanding its presence in emerging markets with growing smartphone demand[34] Miscellaneous - The group did not declare or recommend any dividends for the periods ended June 30, 2024, and 2023[17] - The group had no significant contingent liabilities or guarantees as of June 30, 2024[53] - The group had no major acquisitions or disposals of subsidiaries or joint ventures during the reporting period[55] - The group had no significant future plans for major investments or capital assets as of June 30, 2024[57] - The company has adopted a share option plan effective from October 18, 2019, with a maximum limit of 10% of the issued shares at the time of listing, equating to 100,000,000 shares[68] - As of June 30, 2024, no share options have been granted, exercised, cancelled, or lapsed within the six-month period[70] - The company maintains a public float of no less than 25% of the issued shares as of June 30, 2024[74] - There have been no significant events affecting the group after the reporting period[74] - The interim results announcement will be published on the Hong Kong Stock Exchange and the company's website[74]

Financial Performance - The company reported a significant increase in revenue, achieving a total of $150 million for the fiscal year, representing a 25% growth compared to the previous year[23] - The company has set a revenue guidance of $180 million for the next fiscal year, indicating a projected growth of 20%[23] - New product launches are expected to contribute an additional $20 million in revenue, with a focus on IoT-related products[23] User Growth - User data showed a 30% increase in active users, reaching 1.2 million by the end of the year[23] Market Expansion - The company is expanding its market presence in Southeast Asia, targeting a 15% market share within the next two years[23] Research and Development - Research and development expenses increased by 10%, totaling $15 million, to support innovation in mobile technology[23] Acquisitions and Partnerships - The company is exploring potential acquisitions to enhance its product offerings and market reach, with a budget of $50 million allocated for this purpose[23] - A new strategic partnership has been established with a leading tech firm to co-develop advanced mobile solutions, expected to launch in Q3 2024[23] Operational Efficiency - The company aims to improve operational efficiency, targeting a 5% reduction in costs through process optimization initiatives[23] Sustainability Initiatives - Sustainability initiatives are being prioritized, with a commitment to reduce carbon emissions by 30% over the next five years[23] - The Group has implemented strategies to use resources more efficiently and reduce emissions to combat climate change[120] - The Group anticipates stricter climate legislations and regulations, which may increase capital investment and compliance costs[123] Board Diversity and Governance - The Board consists of eight members, including one female director, achieving the diversity target as per the Board Diversity Policy[45] - Four out of the eight directors are independent non-executive directors, exceeding the requirement of at least one-third as per the Listing Rules[56] - The Company has adopted a Board Diversity Policy to enhance the effectiveness of the Board by ensuring a balance of skills, experience, and perspectives[43] - The Nomination Committee reviews the Board Diversity Policy annually to ensure its effectiveness and recommends suitable candidates for Board appointments[60] - The Board is collectively responsible for promoting the success of the Company by directing and supervising its affairs[53] - The Company aims to maintain a diverse Board by considering various factors such as professional experience, skills, and cultural background during appointments[61] Employee Statistics - As of December 31, 2023, the employee turnover rate for males aged 30 or below was 41.9%, while for females it was 42.3%, resulting in an overall turnover rate of 42.1%[94] - The Group maintains a gender balance in its workforce, with 47% male and 53% female employees as of December 31, 2023[99] - The Group's employee distribution by age group shows that 47% are aged 30 or below, 37% are aged 31-40, 15% are aged 41-50, and only 1% are above 50[102] Employee Welfare and Compliance - The Group provides equal opportunities for employees in recruitment, job advancement, training, and development, ensuring no discrimination based on various factors[76] - The remuneration package for employees includes salary, bonuses, and other subsidies, with annual performance reviews influencing salary raises and promotions[100] - The Group has maintained social insurance for its employees in accordance with applicable PRC laws, covering retirement, medical, work-related injury, maternity, and unemployment benefits[101] - The Group did not employ any child or forced labor, ensuring all job applicants are at least 18 years old[106] Safety and Health - The Group has not experienced any material safety accidents or penalties for non-compliance with work safety laws during the year ended December 31, 2023[78] - The Group's occupational health and safety data reported no work-related fatalities or significant injury cases for the year[115] Corporate Governance - The Audit Committee consists of three independent non-executive Directors, ensuring effective financial reporting and compliance with Listing Rules[72] - The Nomination Committee has formulated a Nomination Policy to ensure a diverse and skilled Board composition[83] - The Board will hold at least four regular meetings each financial year to ensure effective governance[69] - The Group's corporate governance policy focuses on high standards of business ethics and compliance with applicable laws and regulations[142] - The Group's shareholder communication policy ensures that shareholders' views and concerns are appropriately addressed and is regularly reviewed for effectiveness[186] Risk Management - The Board emphasizes the importance of risk management and internal controls, acknowledging its overall responsibility for the effectiveness of these systems[151] - The Group's risk management processes include regular identification, assessment, prioritization, and monitoring of risks, ensuring appropriate internal control processes are in place[176] - The Board evaluates the nature and extent of risks it is willing to accept while achieving strategic business objectives[199] Internal Controls - The Group engaged an independent internal control reviewer to assess the effectiveness of its risk management and internal control systems for the year ended 31 December 2023, with no material internal control deficiencies identified[177] - The Group does not have an internal audit function, as the Board believes it has sufficient capability to oversee the design and implementation of risk management and internal control systems[200] Dividend Policy - The Group has adopted a dividend policy aimed at ensuring sustainable business operations and favorable returns to shareholders[112] - The Group's dividend policy is discretionary and based on earnings, cash flows, and financial conditions, with no guarantee of specific dividend amounts[131] - The Board will review the dividend policy periodically and may amend it as deemed necessary, without constituting a legally binding commitment to pay dividends[156] Auditor Information - The remuneration paid to Moore CPA Limited for audit services during the year ended December 31, 2023, was RMB 1,193,000[146] - The Company appointed Moore CPA Limited as its auditor for the year ended 31 December 2023, with no disagreements reported between the Board and the Audit Committee regarding the auditor's selection[166] Employee Communication and Development - The Group provided comprehensive training and development opportunities to employees, tailored to their needs identified annually[115] - The Group regularly communicates with employees through meetings and training to improve work environment and employee relations[147] - Continuous professional development programs for Directors were arranged to ensure their contributions to the Board remain informed and relevant[143] - The Company confirmed that all directors participated in continuous professional development training, ensuring they are updated on new rules and regulations[163]

Financial Performance - The company recorded revenue of approximately RMB 2,822.9 million for the year ended December 31, 2023, an increase of about 94.6% compared to approximately RMB 1,450.4 million for the year ended December 31, 2022[17]. - The net profit after tax increased approximately 3.8 times to about RMB 31.0 million for the year ended December 31, 2023, up from approximately RMB 6.4 million for the year ended December 31, 2022[17]. - Total revenue for the year ended December 31, 2023, was RMB 2,822,921 thousand, an increase of 94.5% from RMB 1,450,377 thousand in 2022[43]. - Gross profit for the same period was RMB 299,588 thousand, with a gross margin of 10.6%, down from 14.0% in the previous year[43]. - Net profit for the year was RMB 31,016 thousand, compared to RMB 6,361 thousand in 2022, representing a significant increase[43]. - The company reported a total comprehensive income of RMB 30,505,000 for 2023, compared to RMB 4,175,000 in 2022, marking a growth of 629.5%[45]. - The company reported a basic and diluted earnings per share of RMB 3.24 for the year ended December 31, 2023, compared to RMB 0.65 in 2022[43]. Revenue Breakdown - Revenue from printed circuit board assembly increased by 93.1% to RMB 55.6 million, driven by higher customer orders[24]. - Revenue from mobile phones increased by 107.6% from RMB 1,029.8 million for the year ended December 31, 2022, to RMB 2,137.7 million for the year ended December 31, 2023, mainly due to increased sales in China and India[124]. - Revenue from IoT-related products increased by 63.2% from RMB 296.5 million for the year ended December 31, 2022, to RMB 483.8 million for the year ended December 31, 2023, primarily due to increased sales orders from two major customers in China[125]. - Revenue from China alone surged to RMB 1,742,400 thousand in 2023, up from RMB 509,101 thousand in 2022, marking a growth of 242.5%[82]. - Revenue from India grew by 14.0%, increasing from RMB 757.8 million in 2022 to RMB 863.6 million in 2023, attributed to rising smartphone demand[103]. - Revenue from Pakistan rose from zero in 2022 to RMB 131.8 million in 2023, mainly due to enhanced marketing efforts and expanded sales territories[104]. Expenses and Liabilities - Administrative expenses remained relatively stable at RMB 64.3 million for the year ended December 31, 2023, compared to RMB 64.9 million for the year ended December 31, 2022[18]. - The total employee costs for the year amounted to RMB 144,969 thousand, slightly up from RMB 141,543 thousand in the previous year[86]. - The total tax expense for 2023 was RMB 8,931 thousand, significantly higher than RMB 3,464 thousand in 2022[85]. - Financing costs increased by 96.1% from RMB 18.3 million for the year ended December 31, 2022, to RMB 35.8 million for the year ended December 31, 2023, primarily due to increased interest on bank acceptance notes and factoring loans[133]. - The company’s total liabilities included current liabilities of RMB 5,890 million and non-current liabilities of RMB 2,425 million as of the reporting date[20]. Assets and Cash Flow - The company’s cash and cash equivalents stood at RMB 67,951,000 in 2023, compared to no cash reported in 2022[46]. - The total amount of trade receivables and notes receivable as of December 31, 2023, was approximately RMB 814.7 million, significantly up from RMB 194.2 million in 2022[105]. - The group recorded operating cash flow of RMB 1,573.1 million, an increase from RMB 555.9 million for the year ended December 31, 2022[139]. - The group’s net current assets as of December 31, 2023, amounted to RMB 272.8 million, up from RMB 225.7 million as of December 31, 2022[140]. - Trade receivables and notes receivable totaled RMB 808,830,000 in 2023, a significant rise from RMB 191,704,000 in 2022[46]. Stock Options and Corporate Governance - The company had a total of 75,100,000 and 100,000,000 stock options granted as of January 1, 2023, and December 31, 2023, respectively[1]. - The stock option plan allows for a maximum of 10% of the total issued shares, equivalent to 100,000,000 shares[172]. - The expected volatility for the stock options is set at 53.00%[175]. - The exercise price for the stock options is fixed at HKD 0.51[175]. - The company has established an audit committee consisting of three independent non-executive directors, ensuring compliance with the corporate governance code[179]. - The company has adopted a set of corporate governance standards in compliance with the listing rules, adhering to the corporate governance code as of December 31, 2023[177]. Future Plans and Market Strategy - The company plans to continue expanding its product offerings in smart devices and IoT-related products[36]. - The company aims to enhance R&D capabilities and diversify its product offerings to maximize shareholder value amid challenges and opportunities in the ODM smartphone market[99]. - The company plans to leverage the rapid rollout of 5G networks globally to drive demand for smartphones and IoT products[99].

遞延稅項資產 208 248 貿易應收款項及應收票據 11 571,614 191,704 遞延收入 – 3,490 流動資產淨值 227,111 225,656 非流動負債 | --- | --- | --- | |----------------------|---------|---------| | | | | | 遞延稅項負債 | 13,556 | 13,484 | | 借 款 | 13,317 | 14,817 | | | | | | | 26,873 | 40,397 | | | | | | 資產淨值 | 328,534 | 320,709 | | | | | | 資本及儲備 | | | | 股 本 | 8,945 | 8,945 | | 儲 備 | 319,887 | 311,277 | | | | | | 本公司擁有人應佔權益 | 328,832 | 320,222 | | 非控股權益 | (298) | 487 | | | | | | 權益總額 | 328,534 | 320,709 | | --- | --- | |------------------------------|----- ...

Environmental Impact - The Group consumed 45 kg of refrigerant in 2022, down from 50 kg in 2021, resulting in 81.45 tonnes of CO2 equivalent emissions[1] - Total electricity consumption was 6,516,763 kWh in 2022, a decrease from 7,130,284 kWh in 2021, leading to 5,865.09 tonnes of CO2 equivalent emissions[1] - Paper consumption remained stable at 1.3 tonnes in 2022, contributing to 0.01 tonnes of CO2 equivalent emissions[3] - Water consumption decreased to 28,101 cubic metres in 2022 from 32,820 cubic metres in 2021, resulting in 28.10 tonnes of CO2 equivalent emissions[4] - Business air travel emissions increased to 177.16 tonnes in 2022 from 173.37 tonnes in 2021[5] - The Group generated 1,450 tonnes of non-hazardous waste in 2022, down from 1,550 tonnes in 2021, with 1.63 tonnes per employee[10] - The Group aims to maintain its performance in hazardous waste management, having generated minimal amounts in 2022[10] - Employees' awareness of resource conservation has increased due to ongoing measures implemented by the Group[13] - The Group's principles focus on reducing resource consumption and enhancing utilization efficiency for long-term sustainability[14] Employee and Labor Relations - The Group had a total of 890 full-time employees as of December 31, 2022[19] - The employee turnover rate for males was 83.5% and for females was 85.9% for the year ended December 31, 2022[24] - There were no significant disputes with employees or disruptions to business operations due to labor disputes during the year ended December 31, 2022[41] - The Group did not employ any child or forced labor, ensuring all job applicants are at least 18 years old[42] - The employee distribution by age group shows 46% are 30 years or below, 41% are between 30-41 years, 12% are between 41-50 years, and 1% are above 50 years[28] - The Group provided equal opportunities in recruitment, job advancement, and training, with no discrimination based on race, gender, or other prohibited factors[47] - Employee training hours totaled 5,932, with 53.6% male and 46.4% female participation, reflecting a commitment to employee development[58] - The Group emphasized occupational health and safety, with no material safety accidents reported during the year ended December 31, 2022[49] - Employee feedback was regularly collected through gatherings and training, aimed at improving job satisfaction and work environment[48] Financial Performance - Revenue for 2022 was RMB 1,450,377, a decrease of 27.5% from RMB 2,000,104 in 2021[79] - Gross profit for 2022 increased to RMB 203,630, up 18.3% from RMB 172,237 in 2021[79] - Profit for the year 2022 was RMB 6,361, compared to a loss of RMB 18,059 in 2021, marking a significant turnaround[79] - Total assets as of December 31, 2022, were RMB 1,460,989, an increase of 32.5% from RMB 1,102,701 in 2021[79] - Total liabilities for 2022 were RMB 1,140,280, up from RMB 786,864 in 2021, reflecting a 45% increase[79] - Equity attributable to owners of the company was RMB 320,222 in 2022, compared to RMB 315,924 in 2021, showing a slight increase[79] - The company reported a profit attributable to owners of RMB 6,506 in 2022, recovering from a loss of RMB 17,754 in 2021[79] Market and Product Development - The company plans to focus on market expansion and new product development in the upcoming year[78] - The management highlighted ongoing research and development efforts aimed at enhancing product offerings and technological capabilities[78] - Future guidance indicates a cautious optimism for revenue growth as market conditions improve[78] - The Group's product portfolio includes smartphones, feature phones, PCBAs for mobile phones, and IoT-related products, with a focus on sales from smartphones and IoT products[96] - The Group aims to solidify its leading market position amidst challenges in the ODM mobile phone market while leveraging the rapid roll-out of 5G networks[90] - The Group will adopt a prudent approach to business development and increase sales and marketing efforts to diversify geographical locations[91] Compliance and Governance - The Group complied with all applicable laws prohibiting corruption and bribery in the PRC, with no concluded legal cases regarding corrupt practices against the Group or its employees[114] - The Group has implemented a whistleblowing policy to report fraud and corruption, ensuring protection for employees who report in good faith[115] - The Group is committed to protecting customer and employee privacy by maintaining a secure data environment and implementing appropriate data protection policies[118] - The Group has complied with all relevant laws and regulations that significantly impact its operations, including corporate governance and occupational safety[195] Supply Chain Management - The Group's main raw materials and equipment were primarily sourced from suppliers in China, focusing on quality and environmental standards[65] - The Group implemented stringent criteria for supplier selection, ensuring compliance with safety, quality, and environmental standards[66] - The geographical locations of major suppliers are disclosed, indicating the company's supply chain management practices[176] - Policies on managing environmental and social risks in the supply chain are highlighted, showing the company's commitment to responsible sourcing[176] Community Engagement - The Group focused on community investment, allocating resources to environmental and cultural initiatives during the year ended December 31, 2022[120]

自 二 零 一 九 年 十 一 月 十 三 日，本 公 司 已 採 納 一 套 企 業 管 治 常 規，符 合 聯 交 所 證 券 上 市 規 則（「上市規則」）附 錄 十 四 所 載 之 企 業 管 治 守 則（「企業管治守則」）的 守 則 條 文。除 守 則 條 文 第C.2.1條 外，本 公 司 於 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 已 遵 守 企 業 管 治 守 則 所 載 的 守 則 條 文。 暫停辦理股份過戶登記 審 核 委 員 會 由 三 名 獨 立 非 執 行 董 事 組 成，即 黃 昆 杰 先 生、呂 永 琛 先 生 及 洪 為 民 先 生。黃 昆 杰 先 生 為 審 核 委 員 會 主 席。 – 28 – 本年度業績公告刊載於聯交所網站(www.hkex.com.hk)及本公司網站 (www.sprocomm.com)。本 公 司 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 年 報 將 適 時 寄 發 予 本 公 司 股 東 並 刊 載 於 上 述 網 站。 – 29 – 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 ...

Financial Performance - For the six months ended June 30, 2022, the Group's total revenue was RMB 909.3 million, remaining relatively stable compared to RMB 911.7 million in the same period of 2021[11]. - The Group achieved a net profit of RMB 7.8 million for the six months ended June 30, 2022, a significant improvement from a net loss of RMB 34.1 million in the same period of 2021[11]. - The gross profit margin improved from 7.4% for the six months ended June 30, 2021, to approximately 12.5% for the six months ended June 30, 2022[10]. - The earnings per share increased to RMB 0.79 for the six months ended June 30, 2022, compared to a loss per share of RMB 3.39 in the same period of 2021[11]. - Gross profit increased by 69.0% to RMB113.9 million for the six months ended 30 June 2022, with gross profit margin rising to 12.5% from 7.4% in the same period of 2021[24]. - The Group reported a profit before tax of RMB 12.5 million, a turnaround from a loss of RMB 31.9 million in the previous year[61]. - Profit for the period was RMB 7.8 million, compared to a loss of RMB 34.1 million for the same period in 2021[61]. Revenue Breakdown - Revenue from smartphones increased by 11.7% to RMB 676.5 million for the six months ended June 30, 2022, up from RMB 605.7 million in the same period of 2021, driven by increased sales in India and Korea[17]. - Revenue from IoT related products decreased by 19.3% to RMB 163.8 million for the six months ended June 30, 2022, down from RMB 202.9 million in the same period of 2021, primarily due to reduced sales orders from a major customer in China[20]. - Revenue from PCBAs increased to RMB 9.9 million for the six months ended June 30, 2022, from nil in the same period of 2021, as customers shifted orders to mobile phones[20]. - Revenue from India increased by 6.2% to RMB 511.5 million for the six months ended June 30, 2022, compared to RMB 481.5 million in the same period of 2021, attributed to higher demand for smartphones[23]. - Revenue from Pakistan surged by 572.7% to RMB 7.4 million for the six months ended June 30, 2022, from RMB 1.1 million in the same period of 2021, driven by increased demand for feature phones[23]. - Revenue from the People's Republic of Bangladesh decreased by 26.3% to RMB 79.3 million for the six months ended June 30, 2022, down from RMB 107.6 million in the same period of 2021, due to a decline in smartphone sales orders from a major customer[23]. - Revenue from the PRC decreased by 5.8% to RMB 286.7 million for the six months ended June 30, 2022, from RMB 304.4 million in the same period of 2021, primarily due to reduced sales orders for IoT related products[23]. Operational Insights - The Group continued to focus on research and development, designing, manufacturing, and selling mobile phones and IoT-related products, targeting emerging markets[10]. - The Group's operations were minimally impacted by the new wave of COVID-19 in March 2022 due to effective strategies implemented from previous experiences[10]. - The rapid roll-out of 5G telecommunication networks globally is expected to drive demand for smartphones and IoT-related products in the future[12]. - The Group plans to leverage the easing global shortage of electronic components to reduce costs and improve profitability[10]. - The Group's strategic focus includes expanding its market presence in emerging markets and enhancing its product offerings[10]. - The Group's management remains optimistic about future growth opportunities despite the challenges in the ODM mobile phone market[12]. Expenses and Costs - Selling expenses remained stable at RMB21.1 million for the six months ended June 30, 2022, compared to RMB20.4 million for the same period in 2021[26]. - Administrative and other expenses were relatively stable at RMB30.7 million for the six months ended June 30, 2022, compared to RMB31.5 million for the same period in 2021[30]. - Research and development expenses remained stable at RMB60.0 million for the six months ended June 30, 2022, compared to RMB61.8 million for the same period in 2021[31]. - Finance costs increased by 271.0% to RMB11.5 million for the six months ended June 30, 2022, up from RMB3.1 million in the same period of 2021[32]. - Income tax expenses rose by 113.6% to RMB4.7 million for the six months ended June 30, 2022, compared to RMB2.2 million for the same period in 2021[33]. Assets and Liabilities - Trade and bills receivables amounted to RMB230.4 million as at 30 June 2022, slightly up from RMB226.0 million as at 31 December 2021[42]. - Trade and bills payables increased to RMB902.1 million as at 30 June 2022, compared to RMB524.1 million as at 31 December 2021[45]. - As of June 30, 2022, the Group had net current assets of RMB 220.1 million, a slight increase from RMB 218.7 million as of December 31, 2021[49]. - Cash and cash equivalents amounted to RMB 85.4 million, up from RMB 82.9 million as of December 31, 2021[49]. - Pledged bank deposits increased significantly to RMB 661.0 million from RMB 219.2 million as of December 31, 2021[49]. - Total borrowings rose to RMB 81.1 million from RMB 58.2 million as of December 31, 2021[49]. - The Group's current ratio was 1.2 times, down from 1.3 times as of December 31, 2021, while the gearing ratio increased to 0.3 from 0.2[49]. - The Group's unutilized borrowing facilities amounted to RMB 80.9 million as of June 30, 2022, down from RMB 120.9 million as of December 31, 2021[49]. Shareholder Information - As of June 30, 2022, Mr. Li Chengjun held 369,967,204 shares, representing 37.0% of the company's shareholding[156]. - Mr. Xiong Bin held 305,032,256 shares, representing 30.5% of the company's shareholding as of June 30, 2022[156]. - The company has a significant concentration of ownership, with the top two shareholders holding over 67.5% of the shares[162]. - The company has not disclosed any new strategies or market expansions in the recent reporting period[166]. - The company maintains compliance with the Listing Rules regarding the disclosure of directors' interests[170]. Share Option Scheme - The share option scheme allows for the granting of 69,100,000 shares, with 30% of options exercisable from July 1, 2021, and another 30% from July 1, 2022[130]. - The maximum number of shares that can be granted under the Share Option Scheme is capped at 10% of the shares in issue as of the Listing Date, which equates to 100,000,000 shares[179]. - The remaining life of the Share Option Scheme as of June 30, 2022, is approximately seven years and 3.5 months[186]. - The exercise price of share options granted under the Share Option Scheme must be at least the highest of the closing price on the date of grant, the average closing price for the preceding five business days, or the nominal value of a share[185]. - The eligible participants for the Share Option Scheme include full-time or part-time employees, executives, directors, and other contributors as determined by the Board[178]. Litigation and Legal Matters - The company made a provision for litigation loss of approximately RMB 1,766,000 in 2019, which accumulated to RMB 2,093,000 by the end of 2020[148]. - Shenzhen Sprocomm paid a total of RMB 31,138,000 to settle a litigation claim, which included principal, interest, and legal costs[149]. - The company recognized a litigation settlement of RMB 31,138,000, net of a prior receipt of approximately RMB 21,663,000 from the First Defendant, which was legally offset against the claim[150]. - An accumulated provision for litigation losses in prior years was approximately RMB 2,093,000, with an additional RMB 7,382,000 recognized as a loss during the year ended December 31, 2021[150]. - The Group recognized indemnification for litigation loss of approximately RMB 9,475,000 from the Controlling Shareholders upon settlement of the litigation during the year ended December 31, 2021[153].