Financial Performance - Total revenue decreased by approximately 6.4% to about RMB 244.7 million compared to RMB 261.5 million in the same period last year[9] - Gross profit decreased by approximately 15.5% to about RMB 51.2 million, with a gross margin decline to 20.9% from 23.2% in the previous period[9] - Profit attributable to owners decreased by approximately 84.5% to about RMB 2.6 million, down from RMB 16.8 million in the same period last year[9] - Revenue for the six months ended June 30, 2022, was RMB 244.7 million, a decrease of 6.5% from RMB 261.5 million in the same period of 2021[66] - Gross profit for the same period was RMB 51.2 million, down 15.5% from RMB 60.6 million in 2021[66] - Profit for the period was RMB 2.64 million, a significant decline of 84.3% compared to RMB 16.8 million in the previous year[66] - Basic and diluted earnings per share decreased to RMB 0.002 from RMB 0.015 in the prior year[66] - Total comprehensive income for the period was RMB 4.26 million, down from RMB 16.69 million in the same period last year[66] Revenue Breakdown - Revenue from sales of communication copper cables decreased by approximately 36.2% to about RMB 101.7 million, while revenue from sales of optical fibers and cables increased by approximately 114.7% to about RMB 89.1 million[10] - The revenue from the fiber and cable segment was RMB 89.1 million, while the copper cable segment generated RMB 101.7 million, and integrated wiring products contributed RMB 53.9 million[86] Expenses and Costs - Selling and distribution expenses increased by approximately 8.5% to about RMB 21.8 million, primarily due to a rise in employee costs[22] - Administrative expenses rose by approximately 13.2% to about RMB 18.0 million, mainly driven by increased employee costs[24] - Financing costs surged by approximately 229.2% to about RMB 7.9 million, attributed to increased loans and lack of interest capitalization[25] - Research and development expenses for the period were RMB 3.1 million, down from RMB 4.9 million in 2021, reflecting a decrease of about 36.2%[92] - The total depreciation expense for property, plant, and equipment was RMB 14.2 million, compared to RMB 10.3 million in 2021, indicating an increase of approximately 37.5%[92] - The income tax expense for the period was RMB 523,000, down from RMB 3.7 million in the previous year, a decrease of about 86%[93] Cash Flow and Liquidity - As of June 30, 2022, the company's cash and cash equivalents totaled approximately RMB 53.9 million, a decrease of about 41.0% from RMB 91.3 million at the end of 2021[28] - Operating cash flow for the six months ended June 30, 2022, was a net outflow of RMB 57,833 thousand, compared to a net inflow of RMB 43,086 thousand for the same period in 2021[74] - The company reported a decrease in cash and cash equivalents to RMB 36,464 thousand as of June 30, 2022, down from RMB 65,404 thousand at the beginning of the period, a decline of approximately 44.4%[76] - The group has established a suitable liquidity risk management framework to manage short-term, medium-term, and long-term funding requirements[39] Debt and Liabilities - The company's bank and other borrowings amounted to approximately RMB 301.8 million, an increase from RMB 259.5 million at the end of 2021[29] - The debt-to-equity ratio as of June 30, 2022, was approximately 0.88, slightly up from 0.86 at the end of 2021[30] - The total liabilities as of June 30, 2022, were RMB 479,124 thousand, up from RMB 464,292 thousand at the end of 2021, representing an increase of about 3.2%[69] - The total carrying amount of trade receivables and notes receivable as of June 30, 2022, was RMB 272,920,000, with a loss provision of RMB 7,459,000[125] Credit Risk - As of June 30, 2022, the group faced significant credit risk concentrated in two major customers, with trade receivables and notes receivable amounting to RMB 664 million and RMB 1,127 million, representing 24.3% and 40.1% of total trade receivables and notes receivable respectively[34] - The group has implemented a credit risk management strategy, including setting credit limits and monitoring overdue accounts to minimize credit risk[118] - The expected credit loss rates for trade receivables and notes receivable were 0.9% for current, 0.3% for 1-30 days overdue, 6.1% for 31-60 days overdue, 40.4% for 61-90 days overdue, 82.1% for 91-365 days overdue, and 100% for over one year overdue[123] Shareholder Information - Major shareholders include Arcenciel Capital Co., Ltd. holding 37.13% and Point Stone Capital Co., Ltd. holding 32.63% of the shares[51] - The board did not recommend any interim dividend for the current period, consistent with the previous period[46] Market and Industry Insights - The domestic communication industry showed stable growth, with 5G and gigabit optical network construction accelerating, contributing to an increase in information communication supply capacity[13] - As of June 30, 2022, the total number of 5G base stations reached 1.854 million, an increase of 3.6 percentage points compared to the end of the previous year[13] Corporate Governance - The audit committee reviewed the unaudited interim condensed consolidated financial statements for the period[61] - The board is not aware of any significant events that require disclosure after June 30, 2022[136]

Financial Performance - Total revenue increased by approximately 14.8% to approximately RMB 624.5 million for the year ended December 31, 2021, compared to RMB 544.1 million in 2020[8] - Gross profit rose by approximately 18.8% to approximately RMB 144.4 million, with a gross margin increase of about 0.8% to approximately 23.1%[8] - Profit attributable to owners increased by approximately 36.2% to approximately RMB 44.0 million, up from RMB 32.3 million in 2020[8] - Revenue from sales of communication copper cables increased by approximately 31.3% to approximately RMB 353.1 million, while revenue from integrated cabling products rose by approximately 2.4% to approximately RMB 154.2 million[8] - Revenue from fiber optic sales slightly decreased by approximately 5.9% to approximately RMB 117.2 million[8] - Selling and distribution expenses rose by approximately 29.3% from RMB 34.5 million to RMB 44.6 million, accounting for about 7.1% of total revenue[31] - Administrative expenses increased by approximately 9.4% from RMB 41.4 million to RMB 45.3 million[32] - The group's cash and cash equivalents increased by approximately 25.1% from RMB 73.0 million to RMB 91.3 million[38] - The debt-to-equity ratio increased to approximately 0.86 from 0.69 in the previous year[42] - The total debt to total assets ratio increased to approximately 0.46 from 0.41 in the previous year[43] - The actual tax rate increased from approximately 19.8% to 21.7%, with tax expenses rising by approximately 52.5% from RMB 8.0 million to RMB 12.2 million[34] Assets and Liabilities - Total assets as of December 31, 2021, were approximately RMB 1,007.1 million, compared to RMB 843.8 million in 2020[11] - Total liabilities increased to approximately RMB 464.3 million from RMB 343.6 million in 2020[11] Market Expansion and Projects - The company has made significant progress in market expansion, winning contracts for multiple rail transit construction projects in cities like Beijing, Shenzhen, and Guangzhou, benefiting from the rapid development of domestic digital infrastructure[19] - The user penetration rate for 5G networks is expected to increase to 56% as part of the national strategy to optimize and upgrade information network infrastructure[21] - The "East Data West Computing" project is expected to involve investments in the thousands of billions, marking the start of large-scale data center cluster construction, which will drive rapid development in the data center industry[23] - The company expects to benefit from the comprehensive rollout of national strategic projects like "new infrastructure" and "East Data West Computing," which will provide strong momentum for the recovering optical communication market[19] Production and Technology - The company completed the upgrade of its optical communication industry segment, with the first phase of the optical fiber drawing project officially completed and put into production[17] - The maximum optical fiber production capacity is expected to reach 5 million core kilometers, utilizing the world's leading PCVD technology[17] - The company has completed the first phase of its "new non-dispersion single-mode fiber and cable production line" project, optimizing the cost structure of fiber optics and laying the foundation for diversified development in the fiber optic industry[24] Strategic Direction - The company plans to transition from a "product supplier" to a "system integration service provider," enhancing its competitiveness in communication network engineering projects[26] - The company aims to enhance its competitive edge by integrating upstream and downstream resources and participating actively in "new infrastructure" construction projects[24] - Recent bidding information indicates an upward trend in the bidding prices for communication cable products, suggesting a positive outlook for the communication products industry[23] - The company is committed to increasing R&D investment and improving its integrated system solution capabilities, contributing to the development of national and industry standards[26] Governance and Compliance - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2021[8] - The company has adopted the corporate governance code as per the Listing Rules and has complied with applicable provisions during the year[140] - The board consists of three executive directors and three independent non-executive directors, ensuring compliance with listing rules regarding independence and qualifications[146] - The company has established clear responsibilities and reporting procedures to ensure effective internal controls and risk management, with an annual review conducted by a consulting firm[172] Stakeholder Engagement and ESG - The ESG report highlights the group's commitment to sustainable development and social governance, focusing on key performance indicators from its manufacturing operations in Jiangxi, China[187] - The company has adopted stakeholder engagement processes to determine the relevance and importance of ESG issues, ensuring comprehensive reporting[189] - The company prioritizes stakeholder feedback in shaping its short-term and long-term sustainable development strategies[193] - The company is committed to promoting community development and participating in public welfare initiatives as part of its ESG strategy[197] Employee Relations - The group incurred employee costs of approximately RMB 48.3 million in 2021, compared to RMB 38.3 million in 2020, with a workforce increase to about 469 employees from 412[59] - The company is committed to providing competitive compensation and benefits to employees, promoting a safe and diverse work environment[93] - The company maintains good relationships with employees, customers, and suppliers, focusing on creating a positive workplace and producing quality products[61]

INTERIM REPORT 2021 中期報告 目錄 | 公司資料 | 2 | | --- | --- | | 公司簡介 | 3 | | 財務摘要 | 4 | | 管理層討論及分析 | 5 | | 其他資料 | 13 | | 中期簡明綜合全面收益表 | 17 | | 中期簡明綜合財務狀況表 | 18 | | 中期簡明綜合權益變動表 | 20 | | 中期簡明綜合現金流量表 | 21 | | 中期簡明綜合財務報表附註 | 23 | 公司資料 董事會 執行董事 王秋萍女士 （主席兼行政總裁） 趙小寶先生（別名趙保華） 趙默格女士 獨立非執行董事 鄭承欣女士 劉國棟先生 謝海東先生 審核委員會 鄭承欣女士 （主席） 劉國棟先生 謝海東先生 公司秘書 黎樣歡女士 授權代表 王秋萍女士 黎樣歡女士 註冊辦事處 薪酬委員會 劉國棟先生 （主席） 鄭承欣女士 謝海東先生 提名委員會 謝海東先生 （主席） 鄭承欣女士 劉國棟先生 有關香港法律的法律顧問 金杜律師事務所 主要往來銀行 交通銀行（江西支行） 中國銀行（南昌西湖支行） 中國光大銀行股份有限公司 開曼群島主要股份過戶登記處 Cricket Square Hutch ...

Financial Performance - Total revenue decreased by approximately 29.2% to about RMB 544.1 million for the year ended December 31, 2020, compared to RMB 768.3 million in 2019[10] - Gross profit decreased by approximately 34.1% to about RMB 121.6 million, with a gross margin of approximately 22.3%, down from 24.0% in 2019[10] - Profit attributable to owners of the company decreased by approximately 51.6% to about RMB 32.3 million, compared to RMB 66.8 million in 2019[10] - Revenue from cable sales decreased by approximately 48.5% to about RMB 124.6 million, while revenue from integrated cabling products decreased by approximately 30.6% to about RMB 150.6 million[10] - Revenue from communication copper cable sales decreased by approximately 13.1% to about RMB 268.9 million[10] - The company’s net profit decreased by approximately 51.6% from RMB 66.8 million to RMB 32.3 million[34] - Cash and cash equivalents decreased by approximately 24.7% from RMB 96.9 million to RMB 73.0 million as of December 31, 2020[37] - The largest customer contributed approximately 27.5% of total sales, while sales from the top five customers accounted for about 52.3% of total sales[95] - The total revenue from the top five customers represented 52.3% in 2020, compared to 63.2% in 2019[134] Assets and Liabilities - Total assets increased to RMB 837.9 million in 2020 from RMB 802.5 million in 2019[13] - Total liabilities slightly increased to RMB 337.7 million in 2020 from RMB 333.7 million in 2019[13] - As of December 31, 2020, the group's bank borrowings amounted to approximately RMB 169.5 million, an increase from RMB 130.0 million in 2019[38] - The group's debt-to-equity ratio as of December 31, 2020, was approximately 0.68, down from 0.71 in 2019[45] - The total debt to total assets ratio was approximately 0.40 as of December 31, 2020, compared to 0.42 in 2019[46] Dividends and Shareholder Information - The company did not recommend the payment of a final dividend for the year ended December 31, 2020[10] - The company reported a total distributable reserve of approximately RMB 894 million as of December 31, 2020[87] - The company’s dividend policy will be determined by the board based on various factors including financial performance and cash flow[110] Business Strategy and Market Outlook - The slowdown in revenue growth is attributed to the completion of 4G construction in China and the delayed large-scale commercialization of 5G[18] - The company plans to strengthen its R&D capabilities to develop new products and upgrade existing ones[6] - The company plans to focus on developing 5G communication network products and solutions to meet increasing market demands[24] - The demand for optical fiber and cable is projected to grow by 7% globally in 2021, driven by 5G network and gigabit optical network construction[21] - The company aims to explore acquisition opportunities to expand its business in the smart manufacturing sector[22] Employee and Management Information - The group employed approximately 412 employees as of December 31, 2020, a decrease from 541 employees in 2019[60] - Employee costs for the year amounted to approximately RMB 38.3 million, down from RMB 47.9 million in 2019[60] - The company reported a significant increase in overall business management and strategic planning under the leadership of the executive director, Ms. Wang Qiuping, who has been instrumental since the company's founding[65] - The executive director, Mr. Zhao Xiaobao, has over 19 years of experience in production and sales within the telecommunications industry, contributing to the company's sales strategy[66] - Ms. Zhao Moge, responsible for overall operations and finance, has held multiple positions within the company since 2011, showcasing a strong internal talent development[69] Corporate Governance - The company has maintained compliance with relevant laws and regulations, with no significant non-compliance issues reported for the year[63] - The management team includes independent non-executive directors with extensive experience in finance and accounting, enhancing corporate governance and oversight[72][76] - The board of directors consists of a mix of executive and independent non-executive directors, ensuring compliance with listing rules[146] - The company has adopted a board diversity policy to enhance performance through diverse backgrounds and experiences[147] - The company has adopted the standard code of conduct for securities trading as per the listing rules, ensuring proper governance practices[154] Risk Management and Internal Controls - The company has established a formal risk assessment standard, with senior management identifying and evaluating key risks annually[170] - The internal control system was reviewed by a consulting firm, which provided recommendations to enhance its effectiveness[172] - The Audit Committee has reviewed the effectiveness of the risk management and internal control systems, concluding they are effective and sufficient[173] ESG Commitment - The company presented its ESG report for the year ending December 31, 2020, highlighting its commitment to sustainable development and social governance[185] - The ESG report focuses on the environmental and social policies of the company's cable manufacturing business, particularly the performance of its subsidiary in Jiangxi, China[186] - The board is directly responsible for overseeing ESG-related issues, including strategy formulation and risk assessment related to ESG matters[191] - The company aims to enhance shareholder value and maintain transparency in its operations and communications[195] - The company adheres to environmental laws and regulations, such as the Environmental Protection Law of the People's Republic of China, and has obtained ISO 14001:2015 certification for its environmental management system[200]

Financial Performance - Total revenue decreased by approximately 31.4% to about RMB 228.1 million compared to RMB 332.6 million in the previous period[7] - Gross profit decreased by approximately 31.8% to about RMB 51.5 million, with a gross margin slightly decreasing by 0.1% to about 22.6%[7] - Profit attributable to owners decreased by approximately 52.3% to about RMB 12.3 million from RMB 25.8 million in the previous period[7] - Revenue for the six months ended June 30, 2020, was RMB 228,096 thousand, a decrease of 31.5% compared to RMB 332,553 thousand for the same period in 2019[60] - Gross profit for the same period was RMB 51,451 thousand, down 31.9% from RMB 75,531 thousand in 2019[60] - Net profit for the period was RMB 12,299 thousand, representing a decrease of 52.3% compared to RMB 25,810 thousand in 2019[60] - Basic and diluted earnings per share for the period were RMB 0.011, down from RMB 0.024 in the same period last year[60] - Total comprehensive income for the period was RMB 11,690 thousand, down 52.2% from RMB 24,410 thousand in 2019[60] Revenue Breakdown - Revenue from cable sales decreased by approximately 40.6% to about RMB 67.6 million, while revenue from integrated wiring products decreased by approximately 18.3% to about RMB 64.3 million[8] - Revenue from communication copper cable sales decreased by approximately 31.2% to about RMB 96.2 million from RMB 139.9 million in the previous period[8] - Revenue from fiber optic sales dropped by about 40.6% from RMB 113.9 million to RMB 67.6 million[14] - The revenue from the optical cable segment was RMB 67,557 thousand, down from RMB 113,928 thousand in the previous year, a decline of approximately 40.7%[82] Expenses and Costs - Administrative expenses decreased by approximately 33.8% to RMB 12.9 million, with R&D expenses dropping from RMB 8.4 million to RMB 2.7 million[18] - Financing costs decreased by approximately 26.8% to RMB 5.2 million, attributed to interest on loans for the fiber optic production facility[20] - The cost of inventory recognized as cost of sales decreased to RMB 176,645,000 in 2020 from RMB 257,022,000 in 2019, a decline of about 31%[85] - Research and development expenses significantly reduced to RMB 2,695,000 in 2020 from RMB 8,415,000 in 2019, a decrease of approximately 68%[85] Cash Flow and Liquidity - As of June 30, 2020, the group's cash and cash equivalents totaled approximately RMB 97.5 million, a slight increase of about 0.6% from RMB 96.9 million at the end of 2019[23] - Operating cash flow for the six months ended June 30, 2020, was RMB 51,995 thousand, significantly up from RMB 9,680 thousand in the same period of 2019[68] - Cash and cash equivalents at the end of the period increased to RMB 97,529 thousand from RMB 74,440 thousand at the beginning of the year[69] - The company incurred a net cash outflow from investing activities of RMB 22,027 thousand, compared to RMB 65,334 thousand in the previous year[69] Assets and Liabilities - As of June 30, 2020, total assets amounted to RMB 786,840 thousand, a decrease of 1.5% from RMB 802,522 thousand as of December 31, 2019[62] - Current liabilities decreased by 15% to RMB 227,986 thousand from RMB 268,212 thousand as of December 31, 2019[62] - Total liabilities decreased to RMB 306,367 thousand, down from RMB 333,739 thousand as of December 31, 2019[64] - The total liabilities as of June 30, 2020, amounted to RMB 311,160 thousand, compared to RMB 328,093 thousand as of December 31, 2019, indicating a decrease of approximately 5.2%[124] Shareholder Information - Major shareholders include Arcenciel Capital Co., Ltd. holding 408,375,000 shares (37.13%) and Point Stone Capital Co., Ltd. holding 358,875,000 shares (32.63%) as of June 30, 2020[45] Risk Management - The company has established a credit limit and approval process to mitigate credit risk, with a focus on monitoring overdue accounts[113] - The company applies a simplified approach for expected credit loss provisioning under HKFRS 9, assessing trade receivables based on common credit risk characteristics[115] - The company has implemented a liquidity risk management framework to manage short-term, medium-term, and long-term funding requirements[123] Market and Strategic Outlook - The COVID-19 pandemic initially impacted 5G user growth and base station construction, but recovery began in the second quarter of 2020[9] - The Chinese government's new infrastructure policy, including 5G and data centers, is expected to stimulate market demand for communication products[9] - The group plans to enhance its 5G communication network products and solutions, with a fiber optic production facility expected to achieve an annual capacity of 5 million core kilometers by late 2020[12] Corporate Governance - The company does not recommend the payment of an interim dividend for the period[7] - The board does not recommend the payment of an interim dividend for the period, consistent with the previous period[40] - The audit committee reviewed the unaudited interim condensed consolidated financial statements for the period[56]

| 2 | 公司資料 | | --- | --- | | 3 | 公司簡介 | | 4 | 財務摘要 | | 5 | 五年財務摘要 | | 6 | 主席報告 | | 9 | 管理層討論及分析 | | 13 | 董事及高級管理層簡歷 | | 17 | 董事會報告 | | 27 | 企業管治報告 | | 35 | 環境、社會及管治報告 | | 48 | 獨立核數師報告 | | 53 | 綜合損益及其他全面收益表 | | 54 | 綜合財務狀況表 | | 56 | 綜合權益變動表 | | 57 | 綜合現金流量表 | | 58 | 綜合財務報表附註 | 公司資料 董事會 執行董事 王秋萍女士 （主席兼行政總裁） 趙小寶先生（別名趙保華） 趙默格女士 非執行董事 蔣雪楓女士 獨立非執行董事 鄭承欣女士 劉國棟先生 謝海東先生 審核委員會 鄭承欣女士 （主席） 劉國棟先生 謝海東先生 薪酬委員會 目錄 劉國棟先生 （主席） 鄭承欣女士 謝海東先生 提名委員會 謝海東先生 （主席） 鄭承欣女士 劉國棟先生 公司秘書 黎樣歡女士 授權代表 王秋萍女士 黎樣歡女士 註冊辦事處 Cricket Square Hutchins ...

Financial Performance - Total revenue decreased by approximately 10.6% to about RMB 332.6 million compared to RMB 372.0 million in the same period last year[7] - Gross profit decreased by approximately 15.4% to about RMB 75.5 million, with a gross margin slightly declining by 1.3% to approximately 22.7%[7] - Profit attributable to owners decreased by approximately 36.1% to about RMB 25.8 million, down from RMB 40.4 million in the previous period[7] - Revenue from cable sales decreased by approximately 30.5% to about RMB 113.9 million, while revenue from integrated cabling products increased by approximately 12.4% to about RMB 78.7 million[8] - The overall performance of the telecommunications cable industry was poor, primarily due to the end of 4G construction in China and the ongoing trial phase of 5G construction[8] - The company reported a profit of RMB 25,810 thousand for the six months ended June 30, 2019, down from RMB 40,399 thousand in the same period of 2018[66] - Profit before tax decreased to RMB 30,422,000, a decline of 39.1% from RMB 50,030,000 in the previous year[60] - Net profit for the period was RMB 25,810,000, representing a decrease of 36.3% compared to RMB 40,399,000 in 2018[60] - Basic and diluted earnings per share were RMB 0.024, down from RMB 0.037 in the same period last year[60] Expenses and Costs - Selling and distribution expenses increased by approximately 42.6% to RMB 20.1 million, reflecting higher salaries and benefits for sales and marketing personnel[17] - Administrative expenses decreased by approximately 14.9% to RMB 19.5 million, mainly due to a reduction in R&D expenses[18] - Financing costs rose by approximately 97.2% to RMB 7.1 million, attributed to a loan of HKD 100 million for constructing a fiber production facility[20] - Research and development expenses decreased to RMB 8,415,000, down 36% from RMB 13,197,000 in the previous year, indicating a reduction in investment in new technologies[99] Cash Flow and Liquidity - As of June 30, 2019, the company's cash and cash equivalents totaled approximately RMB 100.2 million, a decrease of about 4.9% from RMB 105.4 million at the end of 2018[23] - Operating cash flow for the six months ended June 30, 2019, was RMB 1,941 thousand, a significant decrease from RMB 42,371 thousand in the same period of 2018[67] - Cash and cash equivalents at the end of the period were RMB 91,478 thousand, compared to RMB 15,529 thousand at the end of the previous year[68] - The company has established a suitable framework for managing liquidity risk, ensuring sufficient reserves and bank financing[33] - The company’s cash flow management policies are in place to ensure all payables are settled within the credit period[118] Debt and Equity - The company's debt-to-equity ratio increased to approximately 0.71 as of June 30, 2019, compared to 0.56 at the end of 2018[27] - The total amount of bank and other borrowings as of June 30, 2019, was RMB 64,413 thousand, up from RMB 43,469 thousand as of December 31, 2018, indicating a rise of about 48%[121] - The total liabilities increased from RMB 68,715 thousand as of December 31, 2018, to RMB 82,598 thousand as of June 30, 2019, representing a growth of approximately 20.2%[116] - The total equity attributable to owners of the company was RMB 429,386 thousand, reflecting a 6.0% increase from RMB 404,966 thousand at the end of 2018[64] Segment Performance - Revenue from external customers for the cable segment was RMB 118,175,000, while the communication copper cable segment generated RMB 177,031,000, and the integrated wiring products segment contributed RMB 81,210,000, totaling RMB 376,416,000[92] - The total reportable segment profit was RMB 46,019,000, with the cable segment contributing RMB 9,857,000, the communication copper cable segment RMB 14,943,000, and the integrated wiring products segment RMB 21,219,000[92] - For the six months ended June 30, 2019, the company's segment performance reported a profit of RMB 46,019,000, a decrease of 24% compared to RMB 60,626,000 in the same period of 2018[96] Risk Management - Credit risk has been significantly reduced, with the company only engaging with recognized and reputable clients, and monitoring accounts receivable continuously[31] - The company has implemented a credit verification process for all customers to mitigate credit risk[31] - The company has established financial risk management policies to ensure compliance with credit terms for all payables[118] - The company faced a currency risk with significant financial assets and liabilities denominated in currencies other than its functional currency[140] Future Plans and Investments - The company plans to expand its business into fiber production to gain control over fiber supply and improve supply chain efficiency, with funding support of up to HKD 200 million from AVIC International Capital Holdings[9] - The construction of the fiber production facility is on schedule and is expected to be completed by early 2020, which is anticipated to enhance the company's supply chain strength and industry competitiveness[9] - The company has committed capital expenditures of RMB 121,664 thousand for the acquisition of properties, plants, and equipment, significantly up from RMB 9,500 thousand in the previous period[127] Compliance and Governance - The company maintained compliance with the required public float as per listing rules during the reporting period[56] - The group adopted the new and revised Hong Kong Financial Reporting Standards effective from January 1, 2019, which significantly impacted accounting policies and reporting amounts[73] - The company has not identified any significant events that require disclosure in the annual report since June 30, 2019[146]

Financial Performance - Total revenue increased by approximately 26.4% to about RMB 785.0 million for the year ended December 31, 2018, compared to RMB 621.3 million in 2017[7] - Gross profit rose by approximately 27.4% to about RMB 196.5 million, with a gross margin slightly increasing by 0.2% to approximately 25.0%[7] - Net profit attributable to the company's owners surged by approximately 46.3% to about RMB 85.0 million, up from RMB 58.1 million in 2017[7] - The company's revenue increased by approximately 26.4% from about RMB 621.3 million in the previous year to approximately RMB 785.0 million this year[23] - Revenue from the sale of optical cables rose by approximately 29.8% from about RMB 243.6 million to approximately RMB 316.2 million[23] - Revenue from the sale of integrated cabling products surged by approximately 45.1% from about RMB 122.8 million to approximately RMB 178.2 million[23] - Revenue from the sale of communication copper cables increased by approximately 14.0% from about RMB 254.9 million to approximately RMB 290.6 million[18] - The gross profit rose by approximately 27.4% from about RMB 154.3 million to approximately RMB 196.5 million, with a slight improvement in gross margin to about 25.0%[24] - The company's net profit increased by approximately 46.3% from about RMB 58.1 million to approximately RMB 85.0 million[30] Operational Expansion - The company completed the construction of its second production base, significantly increasing fiber optic cable annual production capacity from 1.2 million core kilometers to approximately 5.6 million core kilometers[15] - The company plans to strengthen relationships with major customers, particularly China's main telecom operators, to enhance product penetration and increase market share[15] - The company intends to expand its business into fiber production to gain control over fiber supply and improve supply chain efficiency[15] - The company plans to expand its product diversity and market penetration through development, acquisitions, and strategic partnerships[20] - The company aims to enhance its market position in the optical cable production value chain by increasing capacity and optimizing its product mix[19] Assets and Liabilities - Total assets as of December 31, 2018, were RMB 631.6 million, compared to RMB 484.1 million in 2017[10] - Total liabilities increased to RMB 226.7 million in 2018 from RMB 160.6 million in 2017[10] - As of December 31, 2018, the group's bank borrowings amounted to approximately RMB 10.0 million, secured by legal mortgages on properties owned by the controlling shareholder and related parties[32] - The group's debt-to-equity ratio as of December 31, 2018, was approximately 0.56, compared to 0.50 in 2017[34] - The total debt-to-total assets ratio as of December 31, 2018, was approximately 0.36, up from 0.33 in 2017[36] Employee and Management - The group employed approximately 471 employees as of December 31, 2018, an increase from 375 employees in 2017, with employee costs for the year amounting to approximately RMB 40.9 million[47] - The management team has over 27 years of experience in the cable and wire industry, ensuring effective production oversight[65] - The executive team includes experienced members with backgrounds in telecommunications and finance, contributing to overall business management and strategy[54][59][63] - The management team has a diverse educational background, with qualifications in engineering, economics, and accounting, enhancing the company's strategic capabilities[60][64] - The company emphasizes compliance with legal standards, ensuring that its operations align with regulatory requirements[52] Governance and Compliance - The board of directors is responsible for overall leadership and strategy oversight of the group, with four committees established for specific areas of governance[122] - The company has maintained compliance with listing rules regarding the appointment of independent non-executive directors, ensuring at least three are appointed, with one possessing appropriate professional qualifications[126] - All independent non-executive directors have confirmed their independence according to the listing rules[88] - The company has established a standard code of conduct for securities trading by directors, ensuring compliance with relevant regulations[133] - The company emphasizes the importance of timely and unfiltered disclosure of information to enable shareholders and investors to make informed investment decisions[158] Environmental and Social Responsibility - The ESG report highlights the group's commitment to sustainable development and social governance, focusing on key performance indicators from its main operating subsidiary in Jiangxi Province, China[168] - The company has initiated stakeholder engagement and materiality assessments to understand stakeholder needs and identify important ESG issues[171] - The total amount of non-hazardous waste generated in 2018 was 151 tons, an increase of 128% from 66 tons in 2017[179] - The total water consumption in 2018 was 14,018 cubic meters, up from 11,494 cubic meters in 2017, representing a 22% increase[179] - The company achieved GB/T24001-2016/ISO14001:2015 environmental management system certification, reflecting its commitment to emission control[178] Quality Control and Customer Relations - A rigorous quality control system is implemented, with all raw materials subjected to quality inspection before being accepted into production[197] - The company provides comprehensive after-sales services, including technical training and regular communication with customers, to enhance customer satisfaction[198] - Annual customer surveys are conducted to gather feedback on products and services, helping the company to adapt to changing customer needs[198] - The company maintains a strict supplier management system, ensuring only qualified suppliers are included based on quality, capacity, and delivery performance[195]