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]

Financial Performance - Total revenue increased by approximately 14.6% to about RMB 261.5 million compared to RMB 228.1 million in the previous period[9] - Gross profit rose by approximately 17.8% to about RMB 60.6 million, maintaining a stable gross margin of approximately 23.2%[9] - Profit attributable to owners increased by approximately 36.5% to about RMB 16.8 million, up from RMB 12.3 million in the previous period[9] - Revenue from sales of communication copper cables surged by approximately 65.6% to about RMB 159.3 million, while revenue from fiber optic cable sales decreased by approximately 38.6% to about RMB 41.5 million[9] - Other income surged by approximately 356.5% to about RMB 1.447 million, primarily due to increased government subsidies[24] - The company's net profit rose by approximately 36.5% to about RMB 16.8 million, compared to approximately RMB 12.3 million in the previous period[30] - Basic and diluted earnings per share increased to RMB 0.015 from RMB 0.011, reflecting a growth of 36.4%[67] - The net profit margin for the period was approximately 47.0%, compared to 36.9% in the previous year[96] Market Expansion and Strategy - The company has made significant progress in market expansion, establishing partnerships with major state-owned construction groups for digital transformation and network construction[11] - The company secured contracts in rail transit construction projects, indicating its leading position in the industry for data and intelligent network integration[13] - The "14th Five-Year Plan" emphasizes the acceleration of digital development and the construction of new infrastructure, which will drive demand for data transmission and cabling networks[14] - The company plans to enhance its R&D capabilities to develop new products and upgrade existing ones, reinforcing its competitive edge in the market[6] - The company aims to enhance its market competitiveness by optimizing its supply chain and expanding its data center business segment[21] - The company plans to continue expanding its market presence and investing in new technologies to enhance product offerings and operational efficiency[79] Financial Position and Liquidity - Cash and cash equivalents increased by approximately 53.4% to about RMB 112.1 million as of June 30, 2021, compared to RMB 73.0 million at the end of 2020[33] - The company's total assets as of June 30, 2021, were RMB 980,408,000, compared to RMB 837,963,000 at the end of 2020, marking a 16.9% increase[69] - Current assets increased to RMB 550,510,000 from RMB 459,153,000, a rise of 19.9%[69] - Total liabilities rose to RMB 463,473,000 from RMB 337,722,000, indicating a 37.2% increase[70] - The company maintained sufficient public float as per listing rules throughout the reporting period[63] - The group has established a suitable liquidity risk management framework to manage short-term, medium-term, and long-term funding requirements[41] - The company’s cash and cash equivalents at the end of the period were RMB 69,763 thousand, down from RMB 97,529 thousand at the end of June 30, 2020, reflecting a decrease of approximately 28.5%[77] Debt and Borrowing - Bank and other borrowings increased to approximately RMB 269.0 million, up from RMB 193.4 million at the end of 2020[34] - The company's debt-to-equity ratio was approximately 0.9 as of June 30, 2021, compared to approximately 0.68 at the end of 2020[35] - Total bank and other borrowings rose to RMB 272,985 thousand as of June 30, 2021, up from RMB 212,432 thousand as of December 31, 2020, marking a 28.5% increase[108] - The interest rate on bank borrowings decreased to 4.12% in 2021 from 5.41% in 2020, indicating a reduction in borrowing costs[112] Employee and Operational Metrics - The group employed 439 staff as of June 30, 2021, an increase from 412 staff as of December 31, 2020, with employee costs amounting to approximately RMB 21.1 million during the period, up from RMB 19.2 million in the previous period[46] - Research and development expenses increased to RMB 4,884,000, a rise of 81.2% from RMB 2,695,000 in the previous year[92] Credit and Risk Management - The group faces significant credit risk primarily from the carrying amounts of recognized financial assets, with no major bad debt risk identified[39] - The company has reduced its credit risk significantly by implementing a dedicated team to set credit limits and monitor overdue accounts, resulting in a concentration of credit risk in two major customers, accounting for 49.6% and 50.5% of total trade receivables as of June 30, 2021[121] - The expected credit loss provision for trade receivables and notes receivable was RMB 7,968,000 as of December 31, 2020, indicating an increase in credit risk over the reporting period[127] - The company applies a simplified approach for expected credit loss provisions under HKFRS 9, allowing for lifetime expected loss provisions for trade receivables[122] Compliance and Governance - The audit committee reviewed the interim financial statements for the period[62] - The company confirmed compliance with all relevant laws and regulations during the reporting period[65] - No significant events requiring disclosure have occurred since June 30, 2021, as per the board's knowledge[139]

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]