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]

Financial Performance - Total revenue decreased by approximately 4.8% to approximately RMB 615.5 million (2022: RMB 646.3 million) [3] - Gross profit decreased by approximately 8.0% to approximately RMB 135.3 million (2022: RMB 147.0 million) [3] - Profit attributable to owners of the company decreased by approximately 69.2% to approximately RMB 7.6 million (2022: RMB 24.7 million) [3] - Total revenue for the year ended December 31, 2023, was RMB 615,504,000, a decrease of 4.7% from RMB 646,253,000 in 2022 [26] - The company reported a profit of RMB 80,520,000 for the year 2023, compared to RMB 85,314,000 in 2022, reflecting a decline of 5.5% [26] - Profit for the year decreased by approximately 69.2% from RMB 24.7 million to RMB 7.6 million [72] Revenue Breakdown - Revenue from sales of optical fibers and cables decreased by approximately 44.1% to approximately RMB 112.7 million (2022: RMB 201.5 million) [3] - Revenue from sales of communication copper cables increased by approximately 15.1% to approximately RMB 341.6 million (2022: RMB 296.8 million) [3] - Revenue from sales of integrated wiring products increased by approximately 9.0% to approximately RMB 161.2 million (2022: RMB 147.9 million) [3] - Revenue from external customers in China was RMB 605,242,000, down 6.2% from RMB 645,323,000 in 2022 [28] - Revenue from fiber optic and cable sales dropped by approximately 44.1% from RMB 201.5 million to RMB 112.7 million due to production halts [65] Assets and Liabilities - Total assets decreased to approximately RMB 714.3 million from RMB 668.5 million in 2022 [6] - Net assets increased to approximately RMB 577.0 million from RMB 570.4 million in 2022 [7] - Total trade receivables increased to RMB 457,062,000 in 2023 from RMB 386,500,000 in 2022, representing a growth of approximately 18.3% [45] - Net trade receivables after loss provisions rose to RMB 437,374,000 in 2023, up from RMB 378,959,000 in 2022, indicating an increase of about 15.4% [45] - The net value of property, plant, and equipment as of December 31, 2023, was RMB 418,765,000, compared to RMB 431,785,000 in 2022, reflecting a decrease of approximately 3.0% [42] Expenses and Costs - Selling and distribution expenses decreased by approximately 11.5% from RMB 46.0 million to RMB 40.7 million, representing 6.6% of total revenue [67] - Administrative expenses increased by approximately 21.6% from RMB 48.7 million to RMB 59.2 million due to depreciation and personnel costs related to fiber production [69] - Financing costs increased to RMB 19,704,000 in 2023 from RMB 19,037,000 in 2022, representing a rise of 3.5% [30] - Research expenses included RMB 14,083,000 in 2023, slightly down from RMB 15,757,000 in 2022 [31] Shareholder Returns - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2023 (2022: nil) [3] - The company will not recommend a final dividend for the current year, consistent with the previous year [100] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with applicable provisions throughout the year, except for the deviation regarding the roles of the Chairman and CEO [103][106] - The Audit Committee was established on October 21, 2017, and has met at least twice a year, reviewing the financial statements and ensuring compliance with relevant accounting standards [109][111] Market and Strategic Developments - The company established new subsidiaries in seven cities, enhancing regional coverage and market penetration capabilities [62] - The company achieved significant progress in international business, with sales of optical fiber products showing substantial growth and participation in major international communication exhibitions [62] - The company is committed to expanding and deepening its global business layout, participating in communication exhibitions in countries like India, Singapore, and Dubai to strengthen customer relationships [97] - The company is actively pursuing market opportunities in the digital economy, particularly in areas such as 5G, IoT, and data centers, which are expected to drive growth in 2024 [96] Financial Management - The company has established a suitable liquidity risk management framework to manage short-term, medium-term, and long-term funding requirements [88] - The company views financial assets overdue by 90 days as defaulted, with potential write-offs for assets where cash flow recovery is not reasonably expected [87] Employee and Operational Metrics - The company employed 453 staff as of December 31, 2023, down from 585 in 2022, with employee costs amounting to approximately RMB 58.6 million in the current year, compared to RMB 60.6 million in 2022 [92] - The company plans to continue investing in development projects and acquiring suitable plants and machinery as deemed appropriate [90] Risk Management - Credit risk is concentrated in two major customers, accounting for approximately 32.2% and 38.1% of total trade receivables [84] - The company has not bought, redeemed, or sold any of its listed securities during the year [102] Accounting Policies - The group has not adopted the revised Hong Kong Financial Reporting Standards that are not yet effective, indicating no significant impact on consolidated financial statements in the foreseeable future [13] - The group’s accounting policy disclosures have been updated to replace "significant accounting policies" with "material accounting policy information" as per the revised standards [11]

Financial Performance - Total revenue increased by approximately 10.5% to around RMB 270.5 million for the six months ended June 30, 2023, compared to RMB 244.7 million in the same period last year[9]. - Gross profit rose by approximately 9.6% to about RMB 56.1 million, with a gross margin decrease to 20.7% from 20.9% in the previous period[10]. - Profit attributable to owners increased by approximately 76.9% to around RMB 4.6 million, up from RMB 2.6 million in the same period last year[10]. - Revenue for the six months ended June 30, 2023, was RMB 270,478,000, representing an increase of 10.5% compared to RMB 244,700,000 for the same period in 2022[67]. - Net profit for the period was RMB 4,640,000, compared to RMB 2,640,000 in the previous year, reflecting a year-on-year increase of 75.8%[67]. - The total comprehensive income for the period was RMB 561,000, down from RMB 4,262,000 in the previous year, primarily due to foreign exchange losses[73]. Revenue Breakdown - Revenue from sales of communication copper cables surged by approximately 67.1% to about RMB 169.9 million, while revenue from fiber optic and optical cables decreased by approximately 33.8% to RMB 59.0 million[11]. - The company's revenue from the fiber and cable segment was RMB 58,984,000, while the copper communication cable segment generated RMB 169,941,000, and the integrated wiring products segment contributed RMB 41,553,000, totaling RMB 270,478,000[83]. Operational Developments - The company secured a 17.54% share in the centralized procurement of data cables by China Mobile from 2022 to 2024, ranking second and laying a solid foundation for the growth of its communication copper cable business[12]. - The group plans to complete the second phase expansion of the "new non-dispersion single-mode fiber and cable production line" by the end of 2023, increasing annual fiber capacity to 10 million core kilometers[15]. - The group will continue to focus on global business expansion by participating in major international communication exhibitions in Asia and Europe to enhance its international presence[15]. Research and Development - The company plans to strengthen its R&D capabilities to continue developing new products and upgrading existing ones[6]. - The group will continue to increase R&D investment to create more high-quality, technologically advanced communication products[15]. Financial Position - Total assets as of June 30, 2023, amounted to RMB 1,213,581,000, an increase from RMB 1,181,581,000 at the end of 2022[68]. - The group’s cash and cash equivalents decreased by approximately 35.9% to about RMB 68.6 million as of June 30, 2023, compared to RMB 107.1 million at the end of 2022[25]. - The debt-to-equity ratio increased to approximately 1.12 as of June 30, 2023, from about 1.07 at the end of 2022[27]. - The company’s total liabilities increased to RMB 642,608,000 from RMB 611,169,000, reflecting a rise in overall debt levels[71]. - The company’s net assets stood at RMB 570,973,000, slightly up from RMB 570,412,000 at the end of 2022[71]. Cash Flow and Liquidity - Operating cash flow for the first half of 2023 was a net outflow of RMB 34,064,000, an improvement from RMB 57,833,000 in the same period of 2022[76]. - The company’s financing activities generated a net cash inflow of RMB 7,302,000, a decrease from RMB 41,967,000 in the same period last year[77]. - The company’s cash and cash equivalents decreased to RMB 35,056,000 from RMB 69,389,000, indicating a reduction in liquidity[68]. Expenses and Costs - Administrative expenses increased by approximately 13.9% from about RMB 18.0 million to approximately RMB 20.5 million, primarily due to rising employee costs[20]. - Financing costs rose by approximately 21.5% from about RMB 7.9 million to approximately RMB 9.6 million, mainly due to increased borrowing during the period[21]. - The company reported employee costs of approximately RMB 25.5 million for the period, an increase from RMB 22.6 million in the previous period[44]. Credit and Risk Management - The company has recognized an expected credit loss of approximately RMB 2.938 million from trade receivables due to lawsuits for overdue trade debts totaling approximately RMB 15.718 million[46]. - The company applies a full lifetime expected credit loss model for trade receivables and notes, using a provision matrix for measurement[36]. - The company has established a liquidity risk management framework to manage short-term, medium-term, and long-term funding requirements[40]. Employee and Management - The company has 602 employees as of June 30, 2023, up from 585 employees as of December 31, 2022[44]. - The remuneration for directors and key management personnel for the period was RMB 2,400,000, slightly up from RMB 2,300,000 in the previous period[110].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部份內容而產生或因倚賴該等內容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2023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： • 總收入增加約10.5%至約人民幣270.5百萬元（上個期間：約人民幣244.7百 萬元）。 • 毛利增加約9.6%至約人民幣56.1百萬元（上個期間：約人民幣51.2百萬元）。 • 毛利率下降至20.7%（上個期間：約20.9%）。 • 本公司擁有人應佔本期間溢利增加約76.9%至約人民幣4.6百萬元（上個期 間：約人民幣2.6百萬元）。 ...

Financial Performance - Total revenue increased by approximately 3.5% to about RMB 646.3 million for the year ended December 31, 2022, compared to RMB 624.5 million in 2021[10] - Gross profit rose by approximately 1.8% to about RMB 147.0 million, with a gross margin decrease of about 0.3% to approximately 22.8%[10] - Profit attributable to the owners of the company decreased by approximately 43.9% to about RMB 24.7 million, down from RMB 44.0 million in 2021[10] - Revenue from sales of optical fibers and cables increased by approximately 71.9% to about RMB 201.5 million, while revenue from sales of communication copper cables decreased by approximately 15.9% to about RMB 296.8 million[10] - Revenue from sales of integrated cabling products decreased by approximately 4.1% to about RMB 147.9 million[10] - Financing costs surged by approximately 660% to RMB 19.0 million, attributed to increased bank and other borrowings, which rose by approximately 30.5% to RMB 338.7 million[35] - The group's net profit decreased by approximately 43.9% to RMB 24.7 million compared to the previous year[38] - Cash and cash equivalents, including restricted cash, increased by approximately 17.3% to RMB 107.1 million[39] - The debt-to-equity ratio increased to approximately 1.07 from 0.86 in the previous year[44] - The total debt-to-total assets ratio rose to approximately 0.52 from 0.46 in the previous year[45] Assets and Liabilities - Total assets as of December 31, 2022, amounted to RMB 1,181.6 million, an increase from RMB 1,007.1 million in 2021[13] - Total liabilities increased to RMB 611.2 million from RMB 464.3 million in 2021[13] Dividends and Shareholder Returns - The company did not recommend the payment of a final dividend for the year ended December 31, 2022[10] - As of December 31, 2022, the company's distributable reserves amounted to approximately RMB 798 million[89] - The dividend policy will be determined by the board based on the company's business conditions, cash flow, financial performance, and other relevant factors[113] - The availability of funds for dividend payments and debt repayment depends on the dividends contributed by subsidiaries registered in China[113] Market Demand and Product Development - The demand for integrated cabling products remains strong, driven by the digital transformation of traditional industries and the construction of new information infrastructure[17] - The demand for digital communication cables, particularly for categories 6 and above, is increasing, with customized products gaining traction in the market[20] - The company plans to continue enhancing its R&D capabilities to develop new products and upgrade existing ones[6] - The group plans to launch the second phase of the "new non-dispersion single-mode fiber and cable production line" in mid-2023, targeting an annual capacity of 10 million core kilometers of fiber[27] - The group will focus on product development and technological innovation in high-frequency, high-speed, and high-density fiber optic cables and data cables[27] Technological Advancements - The company has obtained four patents related to low-loss optical fibers and cable processing devices, enhancing its technological capabilities[21] - The company plans to leverage technological research and development, industry cooperation, and resource integration to optimize its industrial structure and enhance core competitiveness[25] Operational Efficiency and Workforce - The company achieved production capacity close to full load since launching its fiber production line in February 2022, optimizing production costs and enhancing competitiveness[19] - Employee costs for the year amounted to approximately RMB 60.6 million, compared to RMB 48.3 million in 2021, reflecting an increase in workforce from 469 to 585 employees[60] Customer and Supplier Relationships - The group has a credit risk concentration in two major customers, with trade receivables and notes receivable of approximately RMB 147.3 million and RMB 112.7 million, representing about 38.1% and 40.1% of the total trade receivables and notes receivable, respectively[53] - The largest customer accounted for approximately 14.6% of total sales, while sales from the top five customers represented about 45.3% of total sales[97] - The top five suppliers accounted for approximately 61.1% of the total procurement, with the largest supplier representing about 23.2%[97] Corporate Governance - The board of directors includes both executive and independent non-executive members, with details on their remuneration provided in the financial statements[101] - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with applicable provisions throughout the year[149] - The board consists of three executive directors and three independent non-executive directors, maintaining a diverse composition to enhance performance[150] - The company has established audit, nomination, and remuneration committees to monitor specific areas of business and performance[145] Risk Management and Compliance - The board of directors has established a risk management and internal control system, which is reviewed annually by the audit committee[172] - The company has established formal risk assessment standards, with senior management identifying key operational risks annually and evaluating their impact and likelihood[173] - The audit committee has continuously reviewed the effectiveness of the group's risk management and internal control systems, confirming their adequacy for the year[176] Environmental, Social, and Governance (ESG) Initiatives - The ESG report highlights the company's commitment to environmental, social, and governance performance, focusing on its cable manufacturing operations[189] - The company is committed to energy conservation and emission reduction, as well as ecological protection[200] - Stakeholders expect compliance with national policies and regulations, promotion of local economic development, and timely tax payments[200] - The company engages with the community to improve the local environment and participate in public welfare initiatives[200]

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 任何部分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2022年12月31日止年度之 年度業績公告 財務摘要 截至2022年12月31日止年度，本集團之經營業績概述如下： • 總收入增加約3.5%至約人民幣646.3百萬元（2021年：約人民幣624.5百萬元）。 • 毛利增加約1.8%至約人民幣147.0百萬元（2021年：約人民幣144.4百萬元）。 • 毛利率減少約0.3%至約22.8%（2021年：約23.1%）。 • 本公司擁有人應佔年內溢利減少約43.9%至約人民幣24.7百萬元（2021年： 約人民幣44.0百萬元）。 • 來自銷售光纖及光纜的收入增加約71.9%至約人民幣201.5百萬元（2021年： ...

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]