Group 1 - The core viewpoint of the article is that Putian Communication Group (01720) reported a revenue of 299 million RMB for the six months ending June 30, 2025, representing a year-on-year increase of 6.44% [1] - The company's net profit attributable to shareholders was 7.838 million RMB, which is a significant year-on-year increase of 52.82% [1] - The basic earnings per share for the company stood at 0.007 RMB [1]

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，並明確表示概不就因本公告全部或任何部份內容而 產生或因依賴該等內容而引致的任何損失承擔任何責任。 Putian Communication Group Limited 普天通信集團有限公司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股 份 代 號：1720） 截至2025年6月30日止六個月之 中期業績公告 財務摘要 本集團本期間之經營業績概述如下： - 1 - • 總收入增加約6.4%至約人民幣299.0百萬元（上個期間：約人民幣280.9百萬元）。 • 毛利增加約3.9%至約人民幣60.6百萬元（上個期間：約人民幣58.3百萬元）。 • 毛利率減少至20.3%（上個期間：約20.8%）。 • 本公司擁有人應佔本期間溢利增加約52.9%至約人民幣7.8百萬元（上個期間：約人 民幣5.1百萬元）。 • 來自銷售數據通信線纜的收入減少約3.7%至約人民幣163.4百萬元（上個期間：約 人民幣169.7百萬元）；而來自銷售光纖及光纜的收入增加約25.2%至約人民幣77.5 百萬元（ ...

Core Viewpoint - The company, Putian Communication Group, has announced a board meeting scheduled for August 29, 2025, to consider and approve its interim results for the six months ending June 30, 2025, and to discuss the potential distribution of an interim dividend, if any [1] Group 1 - The board meeting will focus on the approval of the company's interim performance [1] - The meeting will also consider the publication of the interim results [1] - The potential distribution of an interim dividend will be discussed during the meeting [1]

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。 Putian Communication Group Limited 1720 董事會會議日期 普天通信集團有限公司（「本公司」）之董事會（「董事會」）謹此宣佈，本公司將於二零二五 年八月二十九日（星期五）舉行董事會會議，藉以（其中包括）考慮及批准本公司及其附屬 公司截至二零二五年六月三十日止六個月之中期業績及其刊發以及考慮派發中期股息（如 有）之建議。 承董事會命 普天通信集團有限公司 主席 王秋萍 中國，2025年8月19日 於本公告日期，本公司董事會包括執行董事王秋萍女士、趙小寶先生及趙默格女士；以 及獨立非執行董事鄭承欣女士、劉國棟先生及謝海東先生。 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 普天通信集團有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01720 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 3,000,000,000 | HKD | | 0.01 | HKD | | 30,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 3,000,000,000 | HKD | | 0.01 | HKD | | 30,000,000 | 本月底法定/註冊股本 ...

Financial Performance - Total revenue increased by approximately 7.9% to approximately RMB 663.9 million (2023: RMB 615.5 million) [10] - Gross profit rose by approximately 4.5% to approximately RMB 141.4 million (2023: RMB 135.3 million) [10] - Net profit attributable to the owners of the company increased by approximately 141.6% to approximately RMB 18.5 million (2023: RMB 7.6 million) [10] - Revenue from fiber optic and cable sales increased by approximately 41.7% to approximately RMB 159.7 million (2023: RMB 112.7 million) [10] - Revenue from data communication cable sales increased by approximately 0.3% to approximately RMB 342.7 million (2023: RMB 341.6 million) [10] - Revenue from integrated cabling products increased by approximately 0.2% to approximately RMB 161.5 million (2023: RMB 161.2 million) [10] Assets and Liabilities - Total assets as of December 31, 2024, were approximately RMB 1,148.8 million (2023: RMB 1,165.2 million) [13] - Total liabilities as of December 31, 2024, were approximately RMB 554.9 million (2023: RMB 588.2 million) [13] - The group's total debt to total assets ratio was approximately 0.48 as of December 31, 2024, compared to 0.50 in 2023 [39] - The group's debt ratio (total liabilities to total equity) was approximately 0.93 as of December 31, 2024, down from 1.02 in 2023 [38] Dividends - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2024 (2023: nil) [10] - The dividend policy will be determined at the discretion of the board, depending on the group's general business conditions, cash flow, financial performance, and other relevant factors [88] Research and Development - The company aims to enhance its R&D capabilities to develop new products and upgrade existing ones [8] - The company plans to accelerate the production of non-dispersion single-mode fibers and the development of 5G-A base station cables, aiming to meet the urgent demand for high-performance cables [22] - The company has a focus on research and development in optical engineering, with board members holding significant academic and professional credentials in the field [62] Strategic Initiatives - The company successfully secured contracts for the 2024 fiber optic procurement projects from China Telecom and China Unicom, enhancing its strategic position in the telecom operator market [18] - The company expanded its direct sales network by establishing branches in seven new cities, improving regional market responsiveness and customer service capabilities [19] - International business achieved significant growth, with special products like ADSS and blown fiber cables entering emerging markets in the Middle East and South America [20] - By 2025, the company anticipates a significant increase in the digital economy's contribution to GDP, creating long-term demand for fiber optic cables and data center solutions [21] - The company aims to enhance its core competitiveness in digital and optical communication fields through a strategic focus on technology breakthroughs and scene-based applications [24] Expenses and Costs - Sales and distribution expenses rose by approximately 11.8% from about RMB 40.7 million to approximately RMB 45.5 million, primarily due to increased transportation costs associated with sales growth [28] - Administrative expenses for the year were approximately RMB 57.8 million, a decrease of about 2.3% from RMB 59.2 million in the previous year due to reduced personnel costs [29] - Financing costs decreased by approximately 1.3% from RMB 19.7 million in the previous year to RMB 19.4 million this year [30] Employee and Management - The group employed 412 staff as of December 31, 2024, a decrease from 453 staff in 2023, with employee costs for the year amounting to approximately RMB 52.4 million [48] - The management team is committed to providing competitive compensation and benefits, as well as career development opportunities for employees [77] - The company has established clear human resources procedures to ensure fair recruitment practices, with no discrimination based on age, gender, race, religion, marital status, or disability [194] Governance and Compliance - The company is actively involved in various committees, including audit, nomination, and remuneration committees, ensuring strong governance practices [58][61][63] - The company has maintained compliance with the corporate governance code, ensuring high standards of management efficiency and transparency [114] - The board consists of three independent non-executive directors, meeting the requirement of at least one with appropriate professional qualifications [117] - All directors confirmed full compliance with the standards set out in the code of conduct during the year [131] Environmental, Social, and Governance (ESG) - The company is committed to reducing environmental pollution and effectively utilizing resources to minimize its impact on the environment [49] - The company has achieved GB/T24001-2016/ISO14001:2015 environmental management system certification, demonstrating its commitment to environmental protection [180] - The company reported a reduction in nitrogen oxides (NOx) emissions to 95.4 kg in 2024 from 122 kg in 2023, representing a decrease of approximately 21.5% [182] - The company is committed to reducing its carbon footprint and has implemented an emergency planning system to enhance employee awareness of environmental incidents [180] - The company has established a two-way communication policy with shareholders to facilitate effective engagement [156] Safety and Health - The company has implemented a comprehensive occupational health and safety management system, certified under GB/T 45001-2020/ISO 45001:2018 [198] - The company has achieved a zero accident rate for work-related injuries over the past three years, with no fatalities reported in 2022, 2023, and 2024 [199] - Fire safety training was organized this year, focusing on case studies of fire incidents in China and the proper use of fire extinguishers [199] Stakeholder Engagement - The company values shareholder rights and ensures fair treatment and effective exercise of those rights [157] - The company encourages shareholders to attend general meetings and actively participate in decision-making processes [157] - The company has established an insider information policy to ensure compliance with securities and futures regulations, with strict adherence required from all employees who may handle such information [153]

Financial Performance - Total revenue increased by approximately 7.9% to approximately RMB 663.9 million for the year ended December 31, 2024, compared to RMB 615.5 million in 2023[3] - Gross profit rose by approximately 4.5% to approximately RMB 141.4 million, with a gross margin decrease of about 0.7% to approximately 21.3%[3] - Profit attributable to owners of the company increased by approximately 141.6% to approximately RMB 18.5 million, up from RMB 7.6 million in 2023[3] - The group reported revenue of RMB 663,865 thousand for 2024, an increase from RMB 615,504 thousand in 2023, reflecting a growth of approximately 7.8%[23] - Total revenue for the year ending December 31, 2024, reached RMB 663,865 thousand, a 7.8% increase from RMB 615,504 thousand in 2023[30] - The company recorded a net profit attributable to shareholders of RMB 18.5 million, a significant increase of 141.6% year-on-year[70] Revenue Breakdown - Revenue from the sale of optical fibers and cables increased by approximately 41.7% to approximately RMB 159.7 million, while revenue from data communication cables rose by approximately 0.3% to approximately RMB 342.7 million[3] - The revenue from the data communication cable segment was RMB 342,706 thousand, showing a slight increase from RMB 341,608 thousand in the previous year[30] - The optical fiber and cable segment generated revenue of RMB 159,668 thousand, up from RMB 112,671 thousand, marking a significant increase of 41.7%[30] - The integrated cabling products segment reported revenue of RMB 161,491 thousand, consistent with RMB 161,225 thousand in 2023[30] Assets and Liabilities - Non-current assets decreased to approximately RMB 423.8 million from RMB 450.9 million in 2023[6] - Current assets increased to approximately RMB 725.0 million from RMB 714.3 million in 2023, with trade receivables rising to approximately RMB 506.3 million[6] - Total liabilities decreased to approximately RMB 430.8 million from RMB 469.0 million in 2023, with current liabilities also showing a decline[7] - Net assets increased to approximately RMB 593.8 million from RMB 577.0 million in 2023[7] - Trade receivables increased to RMB 534,662,000 in 2024 from RMB 457,062,000 in 2023, reflecting a growth of approximately 17%[51] - Net trade receivables amounted to RMB 505,758,000 in 2024, up from RMB 437,374,000 in 2023, indicating a rise of about 16%[51] Expenses and Costs - The total cost of material consumption was approximately RMB 462,398,000 in 2024, compared to RMB 432,534,000 in 2023, reflecting an increase of about 6.4%[38] - Selling and distribution expenses rose by approximately 11.8% from RMB 40.7 million to RMB 45.5 million, primarily due to increased transportation costs from sales growth[77] - Administrative expenses decreased by approximately 2.3% from RMB 59.2 million to RMB 57.8 million, attributed to reduced personnel costs[78] - Financing costs decreased slightly to RMB 19,447 thousand in 2024 from RMB 19,704 thousand in 2023[35] Cash Flow and Financing - The total cash outflow for leases, including short-term leases, was approximately RMB 2,892,000 in 2024, down from RMB 4,169,000 in 2023, representing a reduction of about 30.7%[48] - The company’s cash flow from operating activities includes payments made to banks under supplier financing arrangements[60] - The weighted average effective annual interest rate for bank and other borrowings was 4.63% in 2024, compared to 4.45% in 2023[67] - Total bank and other borrowings amounted to RMB 311.943 million in 2024, down from RMB 341.196 million in 2023[65] Corporate Governance and Compliance - The company is committed to high standards of corporate governance, enhancing management efficiency and risk management[106] - The audit committee, established in 2017, oversees financial reporting and risk management, ensuring compliance with relevant regulations[111] - The auditor confirmed that the preliminary announcement figures align with the audited financial statements for the year ending December 31, 2024[116] Future Plans and Strategies - The group plans to continue investing in development projects and acquire suitable plants and machinery when deemed appropriate[97] - The group aims to enhance ultra-low loss fiber production to meet the urgent demand for high-performance cables in 5G-A base station construction and the "East Data West Computing" project[101] - The group will focus on international expansion in Southeast Asia and the Middle East, targeting smart city and 5G infrastructure projects, while also developing drone-guided invisible cables[102] Dividends and Shareholder Returns - The company did not recommend the payment of a final dividend for the year ended December 31, 2024, consistent with the previous year[3] - The board does not recommend a final dividend for the year, consistent with the previous year[103]

Financial Performance - Total revenue increased by approximately 3.8% to about RMB 280.9 million compared to RMB 270.5 million in the previous period[5] - Gross profit rose by approximately 3.9% to about RMB 58.3 million, with a gross margin increase to 20.8% from 20.7% in the previous period[5] - Profit attributable to owners increased by approximately 10.9% to about RMB 5.1 million, up from RMB 4.6 million in the previous period[5] - Revenue for the six months ended June 30, 2024, was RMB 280,898,000, an increase of 3.3% from RMB 270,478,000 in the same period of 2023[49] - Gross profit for the same period was RMB 58,345,000, representing a gross margin of 20.8%, compared to RMB 56,097,000 in 2023[49] - Profit for the period attributable to owners of the company was RMB 5,129,000, up from RMB 4,640,000 in the previous year, reflecting an increase of 10.5%[49] - Basic and diluted earnings per share for the period were RMB 0.005, compared to RMB 0.004 for the same period in 2023[49] Revenue Breakdown - Revenue from sales of communication copper cables decreased by approximately 0.1% to about RMB 169.7 million, while revenue from sales of optical fibers and cables increased by approximately 4.9% to about RMB 61.9 million[6] - Revenue from integrated cabling products increased by approximately 18.5% to about RMB 49.3 million, compared to RMB 41.6 million in the previous period[6] - Revenue from the sale of optical fibers and cables rose by about 4.9% to approximately RMB 61.9 million, while revenue from integrated wiring products increased by about 18.5% to approximately RMB 49.3 million[11] Operational Highlights - The company successfully fulfilled procurement contracts for data cable products with major Chinese telecom operators, including China Mobile and China Telecom[7] - The company has established deep cooperation with China Railway and China Railway Construction for multiple rail transit construction projects[7] - The company achieved breakthroughs in pipeline expansion in the energy sector, winning multiple communication cable and integrated cabling application segments in energy construction projects[7] - The company actively supported the national strategy project "East Data West Calculation," participating in the construction of the Gansu computing power hub project[7] Financial Position - Cash and cash equivalents increased by approximately 56.2% to about RMB 79.8 million as of June 30, 2024, compared to RMB 51.1 million on December 31, 2023[18] - The company's total debt to total assets ratio remained stable at approximately 0.5 as of June 30, 2024[21] - Total assets as of June 30, 2024, amounted to RMB 1,173,931 thousand, an increase from RMB 1,165,242 thousand as of December 31, 2023[50] - Current liabilities decreased to RMB 416,517 thousand from RMB 469,038 thousand, reflecting a reduction of approximately 11.2%[50] - The company reported a total equity of RMB 582,469 thousand as of June 30, 2024, up from RMB 576,999 thousand at the end of 2023[51] - Non-current liabilities increased to RMB 174,945 thousand from RMB 119,205 thousand, representing a rise of approximately 46.7%[51] Cash Flow and Financing - Net cash generated from operating activities for the six months ended June 30, 2024, was RMB 15,208 thousand, compared to a cash outflow of RMB 34,064 thousand in the same period of 2023[54] - Cash flow from financing activities generated RMB 14,676 thousand, compared to RMB 7,302 thousand in the same period last year[55] - The company’s net asset value increased to RMB 306,436 thousand from RMB 245,291 thousand, reflecting a growth of approximately 24.9%[50] Expenses and Costs - Selling and distribution expenses rose by approximately 4.7% to about RMB 22.3 million, mainly due to increased promotional costs in overseas markets[13] - Research and development expenses for the six months ended June 30, 2024, were RMB 3,343,000, up from RMB 2,452,000 in the same period of 2023, reflecting an increase of approximately 36.3%[67] - The income tax expense for the first half of 2024 was RMB 2,306,000, compared to RMB 1,499,000 for the same period in 2023, representing an increase of approximately 54%[68] - The cost of goods sold for the first half of 2024 was RMB 222,553,000, compared to RMB 214,381,000 in the same period of 2023, indicating an increase of about 3.5%[67] Shareholder Information - As of June 30, 2024, Arcenciel Capital holds 408,375,000 shares, representing 37.13% of the company's equity[36] - Point Stone Capital owns 358,875,000 shares, accounting for 32.63% of the company's equity[36] - The stock option plan, adopted on October 21, 2017, has approximately 3.5 years remaining until expiration[37] - No stock options have been granted under the stock option plan as of June 30, 2024, resulting in no unexercised options[37] Risk Management - The company has established a suitable liquidity risk management framework to manage short-term, medium-term, and long-term funding requirements[26] - The credit risk from bank and restricted cash balances is considered insignificant due to the high credit ratings of the counterparties involved[23] - The company regularly reviews the recoverability of trade receivables to ensure adequate impairment losses are recognized[24] - The group considers the credit risk associated with trade receivables to be low, with no significant increase in expected credit losses since initial recognition[90] Corporate Governance - The board does not recommend the payment of an interim dividend for this period, consistent with the previous period[5] - The company has adopted the corporate governance code and has complied with its provisions during the reporting period, except for the deviation regarding the roles of the chairman and CEO[41] - The audit committee reviewed the interim condensed consolidated financial statements for the period[44] - The company has not identified any significant non-compliance with relevant laws and regulations during the reporting period[47]

Financial Performance - Total revenue increased by approximately 3.8% to approximately RMB 280.9 million compared to RMB 270.5 million in the previous period[1] - Gross profit rose by approximately 3.9% to approximately RMB 58.3 million, with a gross margin increase to 20.8% from 20.7% in the previous period[1] - Profit attributable to owners increased by approximately 10.9% to approximately RMB 5.1 million, up from RMB 4.6 million in the previous period[1] - Revenue from the sale of communication copper cables decreased by approximately 0.1% to approximately RMB 169.7 million, while revenue from the sale of optical fibers and cables increased by approximately 4.9% to approximately RMB 61.9 million[1] - Revenue from the sale of integrated wiring products increased by approximately 18.5% to approximately RMB 49.3 million, up from RMB 41.6 million in the previous period[1] - The reported segment revenue was RMB 280,898,000, an increase from RMB 270,478,000 for the same period in 2023, representing a growth of approximately 3.9%[10] - The reported segment profit for the six months ending June 30, 2024, was RMB 32,746,000, compared to RMB 32,319,000 for the same period in 2023, reflecting a growth of about 1.3%[11] - The company reported a net profit after tax of RMB 5,129,000 for the six months ending June 30, 2024, compared to RMB 4,640,000 for the same period in 2023, representing an increase of approximately 10.5%[11] Earnings and Share Performance - Basic and diluted earnings per share increased to RMB 0.005 from RMB 0.004 in the previous period[2] - The basic earnings per share for the six months ending June 30, 2024, was RMB 0.005, up from RMB 0.004 for the same period in 2023, indicating a growth of 25%[18] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 1,173.9 million, compared to RMB 1,165.2 million as of December 31, 2023[3] - Total liabilities increased slightly to RMB 591.5 million from RMB 588.2 million[4] - Net assets increased to RMB 582.5 million from RMB 577.0 million[4] - The company’s total assets as of June 30, 2024, included trade receivables of RMB 450,633,000, slightly down from RMB 457,062,000 as of December 31, 2023[21] - The total amount of bank and other borrowings increased to RMB 384,385 as of June 30, 2024, compared to RMB 341,196 on December 31, 2023, reflecting a growth of 13%[27] - The company's bank and other borrowings amounted to approximately RMB 384.4 million, with about RMB 224.7 million due within one year[43] - The company's debt-to-equity ratio as of June 30, 2024, was approximately 1.02, unchanged from December 31, 2023[44] - As of June 30, 2024, the group's total debt to total assets ratio is approximately 0.5, consistent with December 31, 2023[45] Cash Flow and Financing - The group has made advance payments of approximately RMB 20,000,000 for the procurement of fiber optic production line equipment as of June 30, 2024[23] - The weighted average effective interest rate for borrowings was 4.48% as of June 30, 2024, slightly up from 4.45% on December 31, 2023[28] - Total financing costs for the six months ending June 30, 2024, were RMB 9,690,000, slightly higher than RMB 9,631,000 for the same period in 2023[14] - The group faces cash flow interest rate risk primarily due to fluctuations in rates published by the People's Bank of China, with no current interest rate hedging policy in place[46] Research and Development - Research and development expenses increased to RMB 3,343,000 for the six months ending June 30, 2024, from RMB 2,452,000 in the same period of 2023, marking an increase of approximately 36.3%[15] Legal and Compliance - The group has initiated legal actions against multiple customers for overdue trade debts totaling approximately RMB 14.47 million, with expected credit losses recognized at approximately RMB 938,000[56] - The company is not aware of any significant non-compliance with relevant laws and regulations during the reporting period[64] - The board does not recommend the payment of an interim dividend for the current period, in contrast to the previous period[55] Corporate Governance - The company maintains compliance with the corporate governance code, with the roles of Chairman and CEO held by the same individual, Ms. Wang, due to her extensive industry knowledge and experience[59] - All directors confirmed full compliance with the standard code of conduct for securities trading during the reporting period[60] - The Audit Committee, consisting of three independent non-executive directors, has reviewed the unaudited interim consolidated financial statements for the period[61] - The reappointment of Deloitte Touche Tohmatsu as the company's auditor was approved at the annual general meeting held on June 18, 2024[63] Market and Business Development - The company has established deep cooperation with major Chinese telecom operators and has been designated as a supplier for centralized procurement of data cables and optical cables for China Telecom in 2024[32] - The company plans to restart the expansion project for the "new type of non-dispersion single-mode fiber and cable production line" to achieve an annual production capacity of 10 million core kilometers of fiber[34] - The company is actively expanding its global business and has signed up to participate in international telecom exhibitions in seven countries, including Russia and Turkey[34] Employee and Operational Costs - Employee costs for the group were approximately RMB 24.2 million for the period, compared to RMB 25.5 million in the previous period[54] Other Financial Information - Other comprehensive income for the period was RMB 341,000, compared to a loss of RMB 4.079 million in the previous period[2] - The company received government grants totaling RMB 200,000 for the six months ending June 30, 2024, down from RMB 500,000 in the same period of 2023[13] - The depreciation expense for property, plant, and equipment was RMB 19,812,000 for the six months ending June 30, 2024, compared to RMB 20,061,000 for the same period in 2023[15] - The total trade payables and notes payable decreased to RMB 121,456 as of June 30, 2024, a decline of 11% from RMB 136,367 on December 31, 2023[24] - Contract liabilities from sales of goods decreased to RMB 17,845 as of June 30, 2024, down 48% from RMB 34,262 on December 31, 2023[26] - The group has capital commitments for property, plant, and equipment amounting to approximately RMB 24.5 million as of June 30, 2024, down from RMB 42.2 million as of December 31, 2023[52] - The group has maintained sufficient public float as required under the listing rules throughout the reporting period[62] - The interim results announcement and report will be published on the company's and the stock exchange's websites[65]

Financial Performance - Total revenue decreased by approximately 4.8% to about RMB 615.5 million for the year ended December 31, 2023, compared to RMB 646.3 million in 2022[9] - Gross profit decreased by approximately 8.0% to about RMB 135.3 million, with a gross margin of approximately 22.0%, down from 22.8% in the previous year[9] - Profit attributable to owners of the company decreased by approximately 69.2% to about RMB 7.6 million, compared to RMB 24.7 million in 2022[9] - Revenue from fiber optic and cable sales decreased by approximately 44.1% to about RMB 112.7 million, while revenue from copper cable sales increased by approximately 15.1% to about RMB 341.6 million[9] - Revenue from integrated cabling products increased by approximately 9.0% to about RMB 161.2 million[9] - The company’s total revenue decreased by approximately 4.8% from RMB 646.3 million to RMB 615.5 million year-on-year[25] - Revenue from fiber optic and cable sales dropped by about 44.1% from RMB 201.5 million to RMB 112.7 million due to the installation and testing of new machinery[25] - Revenue from communication copper cable sales increased by approximately 15.1% from RMB 296.8 million to RMB 341.6 million, driven by project wins with China Mobile and China Railway[25] - Revenue from integrated wiring products rose by about 9.0% from RMB 147.9 million to RMB 161.2 million, benefiting from deep market development[25] - Gross profit decreased by approximately 8.0% from RMB 147.0 million to RMB 135.3 million, with a gross margin decline from 22.8% to 22.0%[26] - Profit for the year decreased by approximately 69.2% to RMB 7.6 million from RMB 24.7 million in the previous year[32] Assets and Liabilities - Total assets as of December 31, 2023, were approximately RMB 1,165.2 million, while total liabilities were approximately RMB 588.2 million[11] - Cash and cash equivalents, including restricted cash, decreased by approximately 52.3% to RMB 51.1 million from RMB 107.1 million in the previous year[33] - Total debt to total assets ratio was approximately 0.50 as of December 31, 2023, compared to 0.52 in the previous year[39] - The group’s debt ratio, calculated as total liabilities divided by total equity, was approximately 1.02 as of December 31, 2023, compared to 1.07 in the previous year[38] Expenses and Costs - Sales and distribution expenses decreased by approximately 11.5% from RMB 46.0 million to RMB 40.7 million, with a percentage of revenue dropping from 7.1% to 6.6%[27] - Administrative expenses increased by approximately 21.6% to RMB 59.2 million from RMB 48.7 million in the previous year, primarily due to depreciation and personnel costs related to fiber optic production equipment[28] - Financing costs rose by approximately 3.7% to RMB 19.7 million from RMB 19.0 million in the previous year[29] Dividends and Shareholder Information - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2023[9] - The company does not recommend the distribution of a final dividend for the year[73] - The company’s dividend policy will be determined by the board based on business conditions, cash flow, financial performance, and other relevant factors[94] Research and Development - The company aims to strengthen its R&D capabilities to continue developing new products and upgrading existing ones[5] - The company aims to restart the expansion of its new non-dispersion single-mode fiber and cable production line to achieve an annual production capacity of 10 million core kilometers[22] Market and Industry Outlook - The Chinese telecommunications industry is expected to continue its stable growth, driven by advancements in 5G and digital infrastructure[15] Corporate Governance - The board of directors includes independent non-executive members with significant experience in accounting, auditing, and optical research, enhancing corporate governance[60][62] - The board has adopted a diversity policy to improve performance quality through a diverse composition of skills and experiences[156] - The company has adopted the corporate governance code as per listing rules, ensuring compliance with applicable provisions[126] - The board consists of three independent non-executive directors, meeting the requirement of at least one with appropriate professional qualifications[129] - The audit committee, established on October 21, 2017, is responsible for overseeing financial statements, annual reports, and the integrity of financial reporting[149] Employee Relations and Welfare - As of December 31, 2023, the group had 453 employees, a decrease from 585 employees in 2022, with employee costs amounting to approximately RMB 58.6 million, down from RMB 60.6 million in 2022[51] - The company is actively involved in various employee welfare programs, including pension and medical insurance plans[51] - The group maintains strong relationships with employees, customers, and suppliers, focusing on creating a positive workplace and producing quality products[53] Environmental, Social, and Governance (ESG) Initiatives - The company is focused on continuous improvement in its environmental, social, and governance (ESG) performance, as detailed in its annual report[52] - The company has committed to fulfilling its corporate social responsibility through its ESG initiatives and performance measures[182] - The company emphasizes the importance of stakeholder communication in formulating and implementing sustainable development strategies[189] - The company is committed to transparency and effective communication regarding its ESG practices and performance[190] - The company has identified and assessed 28 ESG-related issues through stakeholder engagement and materiality assessment[193] Risk Management - The company has established formal risk assessment standards, with senior management identifying and scoring risks annually based on their impact and likelihood[166] - The internal control system has been reviewed by a consulting firm, which provided recommendations to enhance its effectiveness, and the board considers the system sufficient and effective[168] - The audit committee has confirmed the effectiveness and adequacy of the company's risk management and internal control systems for the year[169] Stakeholder Engagement - Key stakeholders include government, shareholders, business partners, customers, employees, and the community, each with specific expectations and communication channels[192] - The company aims to create continuous value for stakeholders by focusing on significant ESG issues identified through stakeholder feedback[193] Compliance and Legal Matters - The company has obtained all necessary registrations and certificates for its business operations and has complied with applicable laws and regulations in China[84] - There were no known significant non-compliance issues with relevant laws and regulations during the year[54]