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 或因倚賴該等內容而引致的任何損失承擔任何責任。 Hong Kong Aerospace Technology Group Limited 香 港 航 天 科 技 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1725） 截 至2023年6月30日 止 六 個 月 之 未 經 審 核 中 期 業 績 公 告 未經審核中期業績 香港航天科技集團有限公司（「本公司」）董事（「董事」）會（「董事會」）宣佈本公司 及 其 附 屬 公 司（統 稱「本 集 團」）截 至2023年6月30日 止 六 個 月（「回 顧 期」）的 未 經 審核中期業績及截至2022年6月30日止六個月的比較數字。 財務摘要 • 本 集 團 回 顧 期 的 收 益 約 為 人 民 幣236.4百 萬 元，較2022年 同 期 約 人 民 幣 324.5百萬元減少約27.1%。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等 內容而引致的任何損失承擔任何責任。 Hong Kong Aerospace Technology Group Limited 香 港 航 天 科 技 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1725） 有關截至2022年12月31日止年度的年報的 補充公告 茲提述(i)香港航天科技集團有限公司（「本公司」）日期分別為2021年10月29日（「該 公告」）及2021年11月9日的公告，內容有關認購（「認購事項」）本公司新股份；(ii) 本公司截至2021年12月31日止年度的年報；(iii)截至2022年6月30日止六個月的中 期報告；及(iv)截至2022年12月31日止年度的年報（「2022年報」）。 於2021年10月29日，本公司與馬興富先生（「認購人」，一位個人投資者）訂立認購 協議（「認購協議」），據此，本公司有條件同意配發及發行，而認購人有條件同意 以每股股份26.41港元的認購價認購9,000,0 ...

Economic Environment - The company reported a challenging economic environment during the reporting period, impacted by rising global inflation, the Ukraine war, and economic slowdowns in China due to COVID-19 restrictions[31]. Revenue and Financial Performance - The total revenue for the year was RMB 635,432 thousand, with significant contributions from various regions including China (RMB 465,866 thousand) and the USA (RMB 20,441 thousand)[22]. - The company recorded a revenue of approximately RMB 635 million, a slight decrease of about 2.3% compared to the same period in 2021[45]. - Revenue from the sale of PCBAs increased by approximately 49.2% to RMB 495 million, up from RMB 331.8 million in the previous year, driven by increased demand for home appliances and smart home devices during the pandemic[51]. - Revenue from the sale of fully assembled electronic products decreased by approximately 55.9% to RMB 140.4 million, down from RMB 318.4 million, mainly due to a lack of new product releases from mobile phone and tablet manufacturers[51]. - The loss attributable to equity holders was approximately RMB 154 million, compared to RMB 53 million in the same period of 2021, primarily due to significant increases in administrative expenses from rapid expansion in the aerospace business[45]. - The group's gross profit for the reporting period was approximately RMB 26.0 million, a decrease of about RMB 11.1 million or 29.8% from RMB 37.1 million in 2021, with the overall gross margin declining from 5.7% to 4.1%[81]. - Other income for the reporting period was approximately RMB 5.1 million, an increase of about 41.2% from RMB 3.4 million in 2021, mainly due to government subsidies[83]. - The loss attributable to equity holders for the reporting period was approximately RMB 154.3 million, compared to RMB 53.1 million in the same period of 2021[89]. Expenses and Costs - The gross profit from PCBAs decreased by approximately 26.5% to RMB 25.4 million, with a gross margin of about 5.1%, down from 10.4% in 2021, primarily due to rising material and transportation costs[61]. - The gross profit from fully assembled electronic products decreased by approximately 73.7% to RMB 0.7 million, with a gross margin of about 0.5%, down from 0.8% in 2021, attributed to competitive pricing for major customers and increased costs[62]. - Sales and distribution expenses increased by approximately 28.7% to RMB 21.3 million, compared to RMB 16.6 million in 2021, with the ratio of sales and distribution expenses to revenue rising from about 2.5% to 3.4%[54]. - Administrative expenses for the reporting period amounted to approximately RMB 143.3 million, a significant increase of about 105.8% compared to RMB 69.6 million in 2021[63]. - Financing costs for the reporting period amounted to approximately RMB 12.1 million, a significant increase of about 1,644.1% from RMB 0.7 million in 2021, mainly due to increased bank borrowings and interest expenses related to leased assets[87]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules and confirmed compliance during the reporting period[4]. - The board has reviewed and discussed the effectiveness of the group's corporate governance policies[5]. - The company emphasizes the importance of high corporate governance standards to enhance performance, transparency, and accountability[147]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, ensuring compliance by all directors during the reporting period[148]. - The company is committed to internal controls, adequate disclosures, and accountability to all shareholders[147]. - The board consists of five executive directors and eight non-executive directors, ensuring a balance of skills and experience necessary for effective leadership[167]. - The company has mechanisms in place to ensure independent opinions are effectively communicated to the board, which were reviewed for their implementation and effectiveness during the reporting period[181]. - The company has appointed new independent non-executive directors, enhancing the board's composition and expertise[169][183]. - The company has complied with the corporate governance code, except for the separation of the roles of chairman and CEO, which are currently held by the same individual[177]. Strategic Initiatives - The board remains optimistic about the aerospace business outlook, particularly after the completion of the advanced manufacturing center in Tseung Kwan O, Hong Kong[33]. - The company plans to accelerate the establishment of satellite manufacturing and operation control centers to generate new revenue streams in the aerospace sector[33]. - The company aims to maintain long-term growth in both aerospace and EMS businesses through strategic initiatives[33]. - The company plans to expand its satellite communication business and develop satellite internet communication services to broaden revenue sources and mitigate business risks[47]. - The company aims to strengthen its research and development capabilities to uncover more business opportunities[47]. - The company has invested significantly in expanding its aerospace expert team and business development team, as well as leasing new properties for satellite manufacturing and supply chain facilities[45]. - The company is advancing the construction of the Satellite Manufacturing Center and the Satellite Operation Control and Application Center to meet global commercial satellite demands[199]. Financial Position - The group's current liabilities/net assets as of December 31, 2022, were approximately RMB 71.7 million, compared to RMB 55.6 million in 2021, with the current ratio decreasing from approximately 1.1 to 0.9[66]. - The group's bank and other borrowings as of December 31, 2022, were approximately RMB 249.4 million, up from RMB 202.6 million in 2021, with a weighted average interest rate of 4.33% compared to 6.42% in the previous year[67]. - As of December 31, 2022, the group held unused bank financing of approximately RMB 8.3 million, a decrease from RMB 376.2 million as of December 31, 2021[93]. - The capital debt ratio was approximately 101.5% as of December 31, 2022, compared to 51.7% as of December 31, 2021[93]. - During the reporting period, bank borrowings and other loans increased by approximately RMB 46.8 million, primarily due to financing for the construction of a production facility in Huizhou, Guangdong, and the development of aerospace business[93]. Dividend and Shareholder Returns - The company does not recommend the payment of a final dividend for the year ended December 31, 2022[71].

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，並明確表示概不會就本公告之全部或任何部分內容而產 生或倚賴該等內容而引致之任何損失承擔任何責任。 Hong Kong Aerospace Technology Group Limited 香 港 航 天 科 技 集 團 有 限 公 司 （於開曼群島註冊成立之有限公司） （股份代號：1725） 截 至2022年12月31日 止 年 度 之 年 度 業 績 公 告 香港航天科技集團有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本 公司及其附屬公司（統稱「本集團」）截至2022年12月31日止年度（「報告期」）的綜 合年度業績，以及截至2021年12月31日止年度的比較數字。 財務摘要 • 本 集 團 報 告 期 的 收 益 約 人 民 幣635.4百 萬 元，較2021年 同 期 的 人 民 幣 650.2百萬元輕微減少約2.3%。 • 本 集 團 報 告 期 的 毛 利 約 人 民 幣26.0百 萬 元，較2021年 同 期 人 民 幣37.1百 萬元減少約29.9%。 ...

Financial Performance - The group's revenue for the six months ended June 30, 2022, was approximately RMB 324.5 million, an increase of about 25.6% compared to RMB 258.4 million for the same period in 2021[8]. - The group's gross profit for the review period was approximately RMB 31.1 million, representing a significant increase of about 116.0% from RMB 14.4 million in the same period of 2021[9]. - The loss attributable to equity holders increased from approximately RMB 4.1 million in 2021 to about RMB 46.6 million in the review period[10]. - The basic and diluted loss per share attributable to equity holders for the review period was RMB 15.086[11]. - The group recorded a revenue of approximately RMB 324.5 million, an increase of about 25.6% compared to the same period in 2021, with a loss attributable to equity holders of approximately RMB 46.6 million, compared to a loss of RMB 4.1 million in the same period of 2021[14]. - The gross profit for the same period was RMB 31,091,000, compared to RMB 14,350,000 in the previous year, indicating a significant increase of approximately 116.7%[78]. - The company reported a loss of RMB 46,615,000 for the six months ended June 30, 2022, compared to a loss of RMB 4,137,000 for the same period in 2021, representing an increase in loss of approximately 1,030%[82]. - The basic and diluted loss per share for the period was RMB 15.086, compared to RMB 1.379 in the previous year, indicating a worsening financial performance[78]. Revenue Breakdown - Revenue from PCBAs increased by approximately 48.7% to RMB 157.3 million, driven by increased demand in the banking and financial sectors as well as smart devices[19]. - Revenue from fully assembled electronic products rose by approximately 9.5% to RMB 167.2 million, primarily due to increased procurement orders for mPOS products from the largest customer[20]. - For the six months ended June 30, 2022, the total segment revenue was RMB 324,464 thousand, with EMS business contributing RMB 91,918 thousand and RMB 232,546 thousand from banking and financial equipment[128]. - Revenue from sales of goods was RMB 250,231 thousand for the six months ended June 30, 2022, up from RMB 230,614 thousand in the previous year, indicating an increase of about 8.5%[134]. - The revenue from the Chinese market reached RMB 238,690 thousand, a significant increase of 32.3% from RMB 180,416 thousand in the prior year[135]. Expenses and Costs - Administrative expenses surged by approximately 299.4% to RMB 62.7 million, mainly due to increased salaries and professional fees related to the aerospace business[27]. - Sales and distribution expenses increased by approximately 40.9% to RMB 9.3 million, attributed to higher employee benefits in the EMS business and increased advertising expenses in the aerospace sector[26]. - The cost of raw materials used increased to RMB 227,988 thousand for the six months ended June 30, 2022, compared to RMB 184,571 thousand in the same period of 2021, reflecting a rise of approximately 23.5%[141]. - The cost of inventory recognized as an expense and included in cost of sales for the six months ended June 30, 2022, was approximately RMB 290,143,000, up from RMB 243,308,000 in 2021, marking an increase of about 19.2%[161]. Assets and Liabilities - Total assets as of June 30, 2022, amounted to RMB 1,212,160,000, up from RMB 941,311,000 as of December 31, 2021, indicating a growth of approximately 29%[86]. - The company's total liabilities increased to RMB 861,720,000 as of June 30, 2022, compared to RMB 549,768,000 at the end of 2021, reflecting a rise of about 57%[86]. - The equity attributable to the company's shareholders decreased to RMB 350,440,000 as of June 30, 2022, down from RMB 391,543,000 at the end of 2021, a decline of approximately 10.5%[86]. - As of June 30, 2022, the net current assets were approximately RMB 32.0 million, down from RMB 55.6 million as of December 31, 2021, with a current ratio of about 1.1 for both periods[33]. - Trade payables decreased significantly to RMB 107,845 thousand as of June 30, 2022, down from RMB 176,118 thousand as of December 31, 2021[172]. Cash Flow and Financing - The net cash used in operating activities for the six months ended June 30, 2022, was RMB (90,656) thousand, compared to RMB (67,136) thousand for the same period in 2021, representing an increase of 34.9%[96]. - The net cash used in investing activities was RMB (94,031) thousand for the six months ended June 30, 2022, compared to RMB (58,467) thousand in the previous year, indicating a significant increase of 60.8%[96]. - The net cash from financing activities increased to RMB 195,770 thousand for the six months ended June 30, 2022, compared to RMB 35,477 thousand in the same period of 2021, reflecting a growth of 438.5%[96]. - The company has unutilized financing of approximately RMB 236 million from two banks as of June 30, 2022, to support manufacturing facility construction contracts[104]. - The company has secured a commitment from its ultimate controlling shareholder for an unsecured and interest-free revolving loan of up to RMB 256 million[104]. Corporate Governance - The company has established an Audit Committee, a Remuneration Committee, and a Nomination Committee to ensure compliance with corporate governance standards[64][66][67]. - The company has appointed new independent non-executive directors as part of its board changes, enhancing governance and oversight[70]. - The company continues to review and monitor its corporate governance practices to ensure adherence to high standards[68]. Strategic Outlook - The group primarily engages in electronic manufacturing services (EMS) and aerospace business, including satellite manufacturing, control, and launch[13]. - The group plans to establish a satellite manufacturing center and a satellite operation control and application center to generate new revenue streams in the aerospace business[15]. - The board remains optimistic about the aerospace business outlook despite challenges posed by ongoing COVID-19 variants and trade tensions between the US and China[14]. - The group aims to continue strengthening its research and development capabilities to uncover more business opportunities[15]. Shareholder Information - As of June 30, 2022, the company’s major shareholder, Hong Kong Aerospace Technology Holdings (BVI), holds 158,213,153 shares, representing 51.20% of the total issued shares[57]. - Vision International Group Limited owns 203,255,353 shares, accounting for 65.78% of the total issued shares[57]. - Mr. Wen Yichuan holds 203,255,353 shares through controlled entities, which is 65.78% of the total issued shares[49]. - Dr. Lin Jiali's spouse has an interest in 4,257,002 shares, representing 1.38% of the total issued shares[52]. - Dr. Ye Zhongxian and his family members hold 2,277,496 shares, which is 0.74% of the total issued shares[52].

Financial Performance - The group reported a revenue of HKD 1.2 billion for the year ended December 31, 2021, representing a year-on-year increase of 15%[13] - The group recorded a revenue of approximately RMB 650.2 million, an increase of about 18.7% compared to RMB 547.8 million in the same period of 2020[16] - The group reported a loss attributable to equity holders of approximately RMB 53.1 million, compared to a profit of approximately RMB 17.3 million in the same period of 2020, primarily due to additional administrative expenses from aerospace operations[16] - The management has provided a revenue guidance of HKD 1.5 billion for the fiscal year 2022, reflecting a growth target of 25%[13] - The overall gross profit was approximately RMB 37.1 million, a decrease of about RMB 12.5 million or 25.2% from RMB 49.6 million in the previous year, with a gross margin decline from 9.1% to 5.7%[27] - The company reported a loss attributable to equity holders of approximately RMB 531 million, compared to a profit of RMB 173 million in the same period of 2020[42] Business Segments - The electronic manufacturing services (EMS) segment contributed approximately 70% of total revenue, while the aerospace business accounted for the remaining 30%[13] - Revenue from the EMS business was divided into two main product categories: PCBA generated RMB 331.8 million (51.0% of total revenue) with a 28.3% increase, while fully assembled electronic products generated RMB 318.4 million (49.0% of total revenue) with a 10.1% increase[23] - The company remains optimistic about the aerospace business outlook for 2022, focusing on the development of the "Golden Bauhinia Constellation" project to provide aerospace data services in the Guangdong-Hong Kong-Macao Greater Bay Area[18] - The group focuses on electronic manufacturing services (EMS) and aerospace business, including PCB assembly and satellite applications[180] Strategic Initiatives - The company is actively developing satellite technology, including smart city satellite big data applications and satellite manufacturing, with a focus on the "Golden Bauhinia Constellation" project[13] - The group plans to expand its market presence in mainland China, particularly in Shenzhen, to leverage the growing demand for aerospace and electronic services[13] - A new product line for advanced satellite communication systems is expected to launch in Q3 2022, aiming to capture a larger share of the aerospace market[13] - The company plans to establish a satellite intelligent manufacturing center and expand its customer base to diversify revenue sources and mitigate business risks[18] - The group is exploring potential mergers and acquisitions to enhance its technological capabilities and market reach[13] Research and Development - The company has invested HKD 100 million in R&D for new technologies in the aerospace sector over the past year[13] - The company will continue to strengthen its research and development capabilities to explore more business opportunities[18] Expenses and Financial Management - Sales and distribution expenses amounted to approximately RMB 166 million, an increase of about 25.3% compared to RMB 132 million in 2020, with the ratio to revenue slightly rising from 2.4% to 2.5%[34] - Administrative expenses reached approximately RMB 696 million, a significant increase of about 203.2% from RMB 230 million in 2020, primarily due to additional salaries and donations related to disaster relief efforts[36] - Financing costs netted approximately RMB 7 million, up about 489.8% from RMB 1 million in 2020, mainly due to increased interest expenses related to lease liabilities[39] - Income tax expenses were approximately RMB 61 million, a 103.7% increase from RMB 30 million in 2020, driven by profit growth in a newly established subsidiary[40] Corporate Governance - The company has adopted and complied with the corporate governance code as per the Stock Exchange Listing Rules, except for the deviation where the roles of Chairman and CEO are held by the same individual[116] - The board consists of five executive directors, two non-executive directors, and five independent non-executive directors, ensuring a balance of skills and experience necessary for effective leadership[123] - The company has conducted annual assessments of the independence of all independent non-executive directors, confirming their independence throughout the year[122] - The company emphasizes the importance of strong corporate governance standards to enhance performance, transparency, and accountability[116] Board Composition and Diversity - The board includes independent non-executive directors from various sectors, ensuring a broad perspective in decision-making[78] - The board currently includes one female director, with plans to increase female representation in future appointments[135] - The board has adopted a diversity policy to enhance the quality of their responsibilities, focusing on skills, experience, and diverse perspectives[135] Environmental, Social, and Governance (ESG) - The board is responsible for overseeing the group's environmental, social, and governance (ESG) performance and assessing related risks and opportunities[194] - The group has established an ESG working group to implement sustainable development initiatives[189] - The group is committed to creating a zero-harm work environment and has implemented measures to ensure employee safety during the COVID-19 pandemic[199] - The environmental, social, and governance report covers the group's performance for the fiscal year from January 1 to December 31, 2021[178] Community Engagement - The company is actively involved in community service and holds significant positions in various industry associations, reflecting its commitment to corporate social responsibility[93][98] - The establishment of a satellite manufacturing center in Hong Kong aims to create more technology jobs for young people[199]

Financial Performance - The group's revenue for the six months ended June 30, 2021, was approximately RMB 258.4 million, a decrease of about 12.5% compared to RMB 295.3 million for the same period in 2020[10]. - The gross profit for the same period was approximately RMB 14.4 million, down about 2.7% from RMB 14.8 million in 2020[11]. - The loss attributable to equity holders of the company was approximately RMB 4.1 million, compared to a profit of RMB 0.6 million in the same period of 2020[11]. - The basic and diluted loss per share attributable to equity holders was RMB 1.379[12]. - Total revenue for the first half of 2021 was approximately RMB 258.4 million, a decrease of 12.5% compared to RMB 295.3 million in the same period of 2020[21]. - Other income for the first half of 2021 was approximately RMB 2.1 million, a decrease from RMB 7.2 million in the same period of 2020[29]. - Administrative expenses rose by 55.4% to approximately RMB 15.7 million, primarily due to wage increases and operational costs from new subsidiaries in Xiamen, China, and Germany[32]. - The company reported a net loss attributable to equity holders of RMB (4,137) thousand for the six months ended June 30, 2021, compared to a profit of RMB 560 thousand for the same period in 2020[160]. - Basic and diluted loss per share was RMB (1.379) for the six months ended June 30, 2021, compared to earnings of RMB 0.187 for the same period in 2020[160]. Business Development and Strategy - The company plans to develop the "Golden Bauhinia Constellation" project to provide aerospace data services in the Guangdong-Hong Kong-Macao Greater Bay Area[17]. - The company aims to expand its satellite launch business to collect satellite data for the Greater Bay Area[17]. - A satellite intelligent manufacturing center will be established to generate new revenue from aerospace business[17]. - The company will continue to strengthen its research and development capabilities to explore more business opportunities[17]. - A cooperation agreement was established with Huawei Cloud Hong Kong to build a remote sensing big data and AI service platform in the Greater Bay Area[60]. - The company is focused on expanding its capabilities in satellite manufacturing and aerospace technology applications through strategic acquisitions[191]. Financial Position - Net current assets as of June 30, 2021, were approximately RMB 98.6 million, down from RMB 142.0 million as of December 31, 2020, with the current ratio decreasing from 1.5 to 1.3[38]. - As of June 30, 2021, the company's interest-bearing liabilities amounted to approximately RMB 628 million, an increase from RMB 267 million as of December 31, 2020[39]. - The capital-to-debt ratio increased to approximately 25.5% as of June 30, 2021, compared to 10.7% as of December 31, 2020, due to the rise in interest-bearing borrowings[40]. - Total assets as of June 30, 2021, amounted to RMB 689,521 thousand, an increase from RMB 575,763 thousand as of December 31, 2020[109]. - Total liabilities increased to RMB 442,705 thousand from RMB 325,473 thousand, indicating a rise in financial obligations[109]. - The total equity attributable to equity holders decreased to RMB 246,816 thousand from RMB 250,290 thousand, indicating a slight decline in shareholder equity[109]. Cash Flow and Investments - The cash flow from operating activities for the six months ended June 30, 2021, was a net outflow of RMB 67,309 thousand, compared to an inflow of RMB 33,023 thousand for the same period in 2020[119]. - The company incurred a net cash outflow from investing activities of RMB 58,467 thousand for the six months ended June 30, 2021, compared to RMB 14,229 thousand in the previous year[119]. - The financing activities generated a net cash inflow of RMB 35,477 thousand for the six months ended June 30, 2021, compared to a net outflow of RMB 8,305 thousand in the same period of 2020[119]. - As of June 30, 2021, the company's cash and cash equivalents decreased by RMB 90,126 thousand, resulting in an ending balance of RMB 88,220 thousand[119]. Acquisitions and Corporate Actions - The company completed the acquisition of 100% equity in Shenzhen Port and Hong Kong Satellite on June 16, 2021, for a total consideration of RMB 1,000,000 and HKD 20,000 (approximately RMB 16,000)[191]. - The total net assets/liabilities acquired from Shenzhen Port and Hong Kong Satellite amounted to RMB 2,351,000, with net assets of RMB 3,407,000 and liabilities of RMB 1,056,000[194]. - The company has committed capital expenditures of RMB 54,981,000 as of June 30, 2021, compared to RMB 44,558,000 as of December 31, 2020[195]. Governance and Compliance - The company has complied with the corporate governance code, except for the separation of the roles of chairman and CEO[86]. - The audit committee reviewed the accounting principles and policies adopted by the group during the review period[81]. - The company has established a share option scheme to incentivize eligible participants and retain talent[78]. - The company maintains a sufficient public float of at least 25% of the total issued shares as of the report date[94].

Financial Performance - The company recorded a revenue of approximately RMB 547.8 million for the year ended December 31, 2020, a slight increase of about 0.3% compared to RMB 546.3 million in 2019[7]. - Profit attributable to equity holders for the reporting period was approximately RMB 17.3 million, a decrease of about 32.0% from RMB 25.5 million in 2019, primarily due to a decline in gross margin and increased administrative expenses[7]. - Revenue from PCBA (Printed Circuit Board Assembly) increased by 33.0% to RMB 258.6 million, accounting for 47.2% of total revenue, while revenue from fully assembled electronic products decreased by 17.8% to RMB 289.2 million, representing 52.8% of total revenue[13]. - Revenue from mainland China was RMB 439.8 million, a decrease from RMB 452.2 million in 2019, while revenue from the United States increased significantly to RMB 27.0 million from RMB 0.01 million[12]. - Gross profit for the group decreased by approximately RMB 10.9 million or 18.0% to RMB 49.6 million, with a gross margin decline from 11.1% to 9.1%[16]. - Other income increased by approximately 230.7% to RMB 12.6 million due to government subsidies received[21]. - Administrative expenses increased by approximately 23.7% to RMB 23.0 million, primarily due to increased professional fees related to government subsidies[22]. - Net impairment losses on financial assets amounted to approximately RMB 5.1 million, up from RMB 0.6 million in the previous year[23]. - The group held unused bank financing of approximately RMB 235.6 million as of December 31, 2020, a significant increase from RMB 9.1 million as of December 31, 2019[29]. Operational Strategy - The company plans to enhance production efficiency and expand its customer base to diversify revenue sources and mitigate business risks[8]. - The company aims to strengthen its R&D capabilities to explore new business opportunities and expand its customer base[8]. - The company is constructing its own production facility in Huizhou instead of renting, to increase long-term shareholder value[8]. - The company is committed to maintaining long-term growth of its existing business despite a challenging operating environment[8]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the Listing Rules, with the exception of the separation of the roles of Chairman and CEO, which are held by the same individual[52]. - The board consists of three executive directors and three independent non-executive directors, with independent directors accounting for over one-third of the board[58]. - The company has confirmed that all independent non-executive directors are independent individuals as per the requirements of the Listing Rules[57]. - The board is responsible for leading and monitoring the company, overseeing business strategies and performance, and ensuring objective decision-making in the best interest of the company[59]. - The company has implemented a robust internal control system to enhance performance, transparency, and accountability, which is crucial for gaining shareholder trust[52]. - The board will continue to review and monitor the company's practices to ensure compliance with corporate governance standards[52]. Environmental, Social, and Governance (ESG) Practices - The environmental, social, and governance (ESG) report covers the performance from January 1, 2020, to December 31, 2020, focusing on the company's operations in China, which is the primary source of revenue[90]. - The board is responsible for overseeing the company's ESG management systems, policies, commitments, strategies, and goals, ensuring compliance with relevant laws and regulations[92]. - The company maintains regular communication with stakeholders, including employees, shareholders, customers, suppliers, and government organizations, to gather opinions on relevant ESG matters[93]. - The company has achieved ISO 14001:2004 certification for its environmental management system, indicating compliance with various environmental regulations in China[100]. - The company has not faced any significant penalties or sanctions for environmental violations during the reporting period[100]. - The company has implemented measures to track resource consumption and improve efficiency, promoting long-term sustainability[118]. Employee and Labor Practices - The total employee compensation for the reporting period was approximately RMB 47.5 million, slightly down from RMB 48.9 million in 2019, with a total of 546 employees as of December 31, 2020[36]. - The total number of full-time employees as of December 31, 2020, was 546, with a low employee turnover rate[120]. - The company has established a comprehensive training program for employees, including onboarding, pre-job, and on-the-job training[132]. - The company maintained a zero injury rate and no major safety incidents occurred during the year ending December 31, 2020[130]. - There were no significant labor disputes or compliance issues regarding child or forced labor reported as of December 31, 2020[127]. Risk Management - The company faced challenges due to the COVID-19 pandemic and trade tensions between the US and China, impacting its performance in the first half of 2020[7]. - The company faced risks related to customer concentration, which could significantly impact business operations and financial status[154]. - Fluctuations in raw material prices were noted as a potential adverse effect on sales costs and profitability[155]. - The company has implemented anti-corruption policies and training for employees to mitigate bribery and fraud risks[149]. Shareholder Information - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2020[35]. - The company has adopted a dividend policy to guide the board in determining whether to pay dividends and the level of dividends to be paid, considering factors such as actual and expected financial performance, operational funding needs, and capital expenditure requirements[87]. - There were no dividends recommended for the fiscal year ending December 31, 2020, consistent with the previous year[158]. - Major shareholder Rich Blessing holds 191,250,000 shares, representing 63.75% of the issued shares[182]. Quality Control and Product Responsibility - The company has implemented strict quality control measures and has been certified with ISO 9001:2008 quality management system[135]. - The company offers a warranty period of zero to 24 months for its products, with a commitment to respond to customer inquiries within 24 hours[136]. - The company has not received any significant claims or lawsuits related to product quality during the year ending December 31, 2020[135]. Capital Expenditures and Investments - The group's capital expenditures for the reporting period were approximately RMB 56.3 million, up from RMB 32.0 million in 2019, mainly related to the construction of the Huizhou production facility and acquisition of land use rights[34]. - The company successfully acquired land use rights in Huizhou for a consideration of RMB 25.5 million on July 7, 2020[37]. - As of December 31, 2020, the company's capital commitments amounted to approximately RMB 446 million, a significant increase from RMB 9 million in 2019, primarily related to the acquisition of machinery and equipment to expand production capacity and improve efficiency[41].

Revenue and Profitability - The group's revenue for the six months ended June 30, 2020, was approximately RMB 295.3 million, an increase of about 8.6% compared to RMB 271.9 million for the same period in 2019[11][17]. - The profit attributable to equity holders of the company was approximately RMB 0.6 million, a significant decrease of about 96.9% compared to RMB 17.9 million in the same period of 2019[13][17]. - Revenue from the PCBA segment was RMB 95.6 million, accounting for 32.4% of total revenue, while revenue from fully assembled electronic products was RMB 199.7 million, accounting for 67.6%[22]. - Revenue from PCBA sales increased by approximately 12.5% to RMB 95.6 million compared to RMB 85.0 million in the same period of 2019[23]. - Revenue from fully assembled electronic products rose by about 6.8% to RMB 199.7 million from RMB 187.0 million in the same period of 2019, driven by increased orders for mPOS products[25]. - The basic and diluted earnings per share attributable to equity holders during the review period were RMB 0.187[14]. - The company recorded revenue from China of RMB 264.0 million, an increase from RMB 235.7 million in the same period of 2019[21]. - Revenue from product sales was RMB 269,825 thousand, up 19.7% from RMB 225,337 thousand in the previous year[137]. - Revenue from services decreased to RMB 25,431 thousand, down 45.4% from RMB 46,575 thousand in the prior period[137]. Cost and Expenses - The gross profit for the group during the review period was approximately RMB 14.8 million, a decrease of about 56.5% from RMB 34.1 million in the same period of 2019[12]. - Gross margin fell from 12.5% in 2019 to 5.0% in the review period[26]. - Gross profit from PCBA sales decreased by approximately 34.1% to RMB 8.9 million, with a gross margin of 9.3% compared to 15.8% in the same period of 2019[28]. - Gross profit from fully assembled electronic products dropped by approximately 71.1% to RMB 6.0 million, with a gross margin of 3.0% compared to 11.0% in the same period of 2019[29]. - Total operating expenses for the six months ended June 30, 2020, amounted to RMB 301,213 thousand, an increase of 18.8% from RMB 253,380 thousand in the same period last year[142]. - Selling and distribution expenses decreased to RMB 6,100 thousand from RMB 7,126 thousand, a reduction of approximately 14.4%[100]. - Administrative expenses increased to RMB 10,137 thousand from RMB 8,437 thousand, reflecting an increase of approximately 20.1%[100]. Financial Position - The group’s liquidity ratio decreased from approximately 1.7 as of December 31, 2019, to approximately 1.4 as of June 30, 2020[40]. - The group’s interest-bearing liabilities amounted to approximately RMB 11.9 million as of June 30, 2020, down from RMB 16.4 million as of December 31, 2019[41]. - The capital debt ratio as of June 30, 2020, was approximately 5.0%, down from 7.0% as of December 31, 2019, indicating a low level of interest-bearing debt[42]. - The total assets of the company increased to RMB 598,224,000 as of June 30, 2020, compared to RMB 444,549,000 as of December 31, 2019, representing a growth of 34.5%[109]. - The company's total liabilities rose to RMB 360,018,000 as of June 30, 2020, compared to RMB 208,368,000 at the end of 2019, indicating an increase of 72.8%[109]. - Trade receivables amounted to RMB 272,578,000 as of June 30, 2020, an increase of 77.06% from RMB 153,796,000 as of December 31, 2019[164]. - The total amount of other payables was RMB 8,416,000 as of June 30, 2020, compared to RMB 6,520,000 as of December 31, 2019, marking an increase of 29%[174]. Cash Flow and Investments - Cash flow from operating activities for the six months ended June 30, 2020, was RMB 30,191,000, a substantial increase of 184.5% from RMB 10,611,000 in the same period of 2019[118]. - The company incurred a net cash outflow from investing activities of RMB 14,229,000 for the six months ended June 30, 2020, compared to RMB 483,000 in the previous year[118]. - The cash and cash equivalents at the end of the period were RMB 116,371,000, down from RMB 150,500,000 at the end of June 2019, reflecting a decrease of 22.6%[118]. - The total capital expenditure during the review period was approximately RMB 13.4 million, compared to RMB 2.3 million for the six months ended June 30, 2019[45]. - The company has contracted but not yet incurred capital expenditures of RMB 5,075,000 as of June 30, 2020, compared to RMB 876,000 at the end of 2019, showing a growth of 478%[175]. Government Grants and Other Income - Other income for the group was approximately RMB 7.2 million, including government grants of RMB 3.2 million received in the same period of 2019[32]. - Government grants received increased to RMB 7,181 thousand, compared to RMB 3,162 thousand in the previous year[143]. - The company received government grants amounting to RMB 6,900,000 during the six months ended June 30, 2020, compared to RMB 1,827,000 in the same period of 2019, marking an increase of 277.5%[118]. Shareholder Information - Rich Blessing Group Limited holds significant shares, with Mr. Ma owning 62.91%, Ms. Chen 20.00%, Ms. Cheng 14.89%, and Mr. Cheng 2.20%[62]. - The company has a stock option plan that allows for the issuance of up to 30,000,000 shares, equivalent to 10% of the issued share capital at the time of listing[77]. - No stock options were granted, exercised, canceled, or lapsed during the review period up to June 30, 2020[80]. - The board did not recommend the payment of an interim dividend for the review period, consistent with the previous year[48]. - The company did not declare or pay any dividends for the six months ended June 30, 2020, and 2019[152]. Future Plans and Challenges - The company plans to enhance production capacity and efficiency, expand its customer base, and strengthen research and development capabilities to explore more business opportunities[18]. - The company faced challenges due to trade tensions between the U.S. and China and the impact of COVID-19, which affected production and profitability during the review period[16]. - The company aims to build its own production facilities instead of leasing to increase long-term shareholder value[18].

Financial Performance - For the fiscal year ending December 31, 2019, the company reported revenue of approximately RMB 546.3 million, a slight decrease of 0.1% compared to RMB 546.7 million in 2018[11]. - Revenue from PCB assembly (PCBA) increased by approximately 42.9% to RMB 194.5 million, driven by demand in the banking and financial sectors as well as the introduction of a major client in smart devices[19]. - Revenue from fully assembled electronic products decreased by approximately 14.3% to RMB 351.9 million, primarily due to reduced demand in the tablet market[11]. - The company's geographical revenue breakdown shows that China accounted for RMB 452.2 million, while other regions contributed RMB 94.1 million collectively[16]. - Gross profit for the reporting period was approximately RMB 60.5 million, a decrease of about RMB 5.3 million or 8.1% from RMB 65.8 million for the year ended December 31, 2018, with overall gross margin declining from 12.0% to 11.1%[23]. - Profit attributable to equity holders increased by approximately 23.6% to RMB 25.5 million, up from RMB 20.6 million in the previous year[34]. - The company reported a significant increase in PCBA revenue, which now represents 35.6% of total revenue, up from 24.9% in the previous year[18]. - The company acknowledges the ongoing challenges posed by the US-China trade tensions affecting the EMS industry growth[11]. Operational Challenges - The impact of the COVID-19 pandemic has introduced uncertainties in the operational environment, prompting the company to prepare measures to mitigate its effects[12]. - The company is closely monitoring the impact of COVID-19 on its operations, with temporary production halts affecting financial performance[55]. - The company is collaborating with suppliers to expedite raw material deliveries and adjusting delivery schedules to mitigate economic impacts from the pandemic[56]. - The company plans to continue evaluating the financial impact of the pandemic and will take necessary measures as required[57]. Corporate Governance - The company has adopted and complied with the corporate governance code as per the Listing Rules, except for the deviation regarding the roles of Chairman and CEO being held by the same individual[71]. - The board consists of independent non-executive directors with extensive professional knowledge and experience in accounting, finance, and business, ensuring strong independent viewpoints in decision-making[75]. - The company emphasizes high corporate governance standards to enhance performance, transparency, and accountability, which is crucial for gaining shareholder and public trust[71]. - The company has a strong focus on internal controls and adequate disclosures to adhere to corporate governance principles[71]. - The independent non-executive directors have significant experience in auditing, accounting, and corporate finance, contributing to the board's effectiveness[75]. - The company has a commitment to reviewing and monitoring its corporate governance practices to maintain high standards[71]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific written terms of reference[90]. Employee and Compensation - The total compensation for employees in 2019 was approximately RMB 48.9 million, an increase from RMB 34.0 million in 2018, with 490 employees as of December 31, 2019[44]. - The employee turnover rate remained low, with a total of 490 full-time employees as of December 31, 2019[157]. - The group has established employment contracts based on fairness, voluntary agreement, and mutual consent, providing compensation including salaries, bonuses, and other allowances[161]. - The group has maintained good employee relations through regular communication and feedback collection to improve the work environment[166]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report covers the group's performance from January 1, 2019, to December 31, 2019, focusing on its operations in China[127]. - Key environmental issues include greenhouse gas emissions, energy consumption, and compliance with environmental protection laws[134]. - The group identified significant environmental, social, and operational issues impacting its financial condition and operational performance[133]. - The company achieved ISO 14001:2004 environmental management system certification for its PCB processing and wireless data terminal product production[139]. - The company has implemented policies to reduce air and water pollution and energy consumption[140]. - The group has not employed any child or forced labor, ensuring all job applicants are at least 18 years old[164]. - The group has adhered to anti-corruption policies, ensuring compliance with applicable laws against bribery and corruption, with no concluded corruption lawsuits against the group or its employees as of December 31, 2019[176]. Future Plans and Investments - The company plans to enhance its R&D capabilities and expand its customer base as part of its strategy to maintain long-term growth[12]. - The company aims to build its own production facilities to replace leased ones, thereby improving long-term shareholder value[12]. - The company is taking a cautious approach to its expansion plans due to uncertainties from US-China trade tensions, with plans to utilize remaining funds over the next two years[49]. - The company allocated HKD 42.8 million for capacity expansion and production efficiency improvements, with HKD 21.9 million remaining[49]. Financial Commitments and Expenditures - Capital expenditures for the reporting period were approximately RMB 32.0 million, down from RMB 40.9 million in 2018[42]. - The capital commitments as of December 31, 2019, were approximately RMB 0.9 million, down from RMB 1.4 million in 2018, indicating reduced investment in machinery and equipment[53]. - The net proceeds from the share sale amounted to approximately HKD 96.7 million, with HKD 52.0 million already utilized by December 31, 2019[49].