Financial Performance - The Group experienced a slight decline in revenue but improved overall profitability, with total profit showing significant growth compared to the previous year[15]. - The company's turnover for the year ended December 31, 2023, was RMB 786 million, a decrease of 15.3% compared to RMB 928 million in 2022[31]. - Gross profit for 2023 was RMB 346 million, resulting in a gross profit margin of 44.0%, up from 37.5% in 2022[31]. - Profit attributable to owners of the company for 2023 was RMB 27 million, a recovery from a loss of RMB 272 million in 2021[31]. - The net profit margin for 2023 was 3.5%, recovering from a loss margin of 31.1% in 2021[31]. - The total revenue for the year ended December 31, 2024, was approximately RMB 746.1 million, a decrease of approximately RMB 40.0 million compared to RMB 786.1 million for the year ended December 31, 2023[63]. - For the year ended 31 December 2024, the Group recorded a net profit of approximately RMB 37.9 million, an increase of approximately RMB 10.2 million compared to RMB 27.7 million for the year ended 31 December 2023[83]. - The profit attributable to owners of the parent for the year ended 31 December 2024 was approximately RMB 37.2 million, representing an increase of approximately RMB 10.4 million over RMB 26.8 million for the year ended 31 December 2023[78]. Asset Management - Total assets increased to RMB 1,817 million in 2023, compared to RMB 1,729 million in 2022[31]. - The Group's total assets as of 31 December 2024 were approximately RMB 1,887.8 million, an increase from approximately RMB 1,816.9 million as of 31 December 2023[85]. - The Group's cash and cash equivalents increased by approximately RMB 109.1 million during 2024, reaching approximately RMB 607.2 million as of 31 December 2024[84]. - The Group's total liabilities as of 31 December 2024 were approximately RMB 271.4 million, an increase from approximately RMB 254.2 million as of 31 December 2023[85]. Strategic Focus - The Group has withdrawn from its financial operations to focus on the high-quality development of its lighting business[17]. - The company plans to increase investment in research and development to enhance product competitiveness and provide innovative solutions[22]. - The company aims to optimize internal resource allocation and streamline its organizational structure to improve operational efficiency[22]. - The company is focusing on high-end lighting products as part of its strategy for future growth[26]. - The company will continue to focus on the lighting industry, enhancing product quality and exploring new technological fields to expand market space[121]. - The company is actively implementing a supply chain diversification strategy to mitigate trade risks and reduce tariff costs amid escalating global trade uncertainties[120]. Leadership and Governance - Mr. Lian Chenwei was appointed as vice president and executive director on August 1, 2022, and October 16, 2023, respectively, bringing extensive experience in investment management and business planning[42]. - Ms. Zhang Yuanyuan was appointed as executive director, chairperson, president, and CEO on August 20, 2024, with rich experience in capital operations and financial management[43]. - The company has a strong leadership team with diverse backgrounds in finance, legal affairs, and business development, enhancing its strategic capabilities[42][43][45][47][49]. - The leadership team collectively holds advanced degrees in various fields, including economics, management, and accounting, contributing to informed decision-making[42][43][45][47][49]. - The appointments of new directors reflect the company's commitment to strengthening its governance and strategic direction[43][45][47][49]. Market Conditions - The global economic environment remains complex and volatile, particularly due to uncertainties introduced by the new administration in the United States[18]. - The geopolitical situation and energy supply issues in Europe have negatively impacted consumer purchasing power, leading to weak market demand for discretionary products[113]. Operational Efficiency - The Group recorded a gross profit of approximately RMB 322.1 million for the year ended December 31, 2024, a decrease of approximately RMB 23.8 million from RMB 345.9 million for the year ended December 31, 2023[65]. - The selling and distribution expenses for the year ended 31 December 2024 were approximately RMB 234.0 million, an increase of approximately RMB 12.8 million from RMB 221.2 million for the year ended December 31, 2023[74]. - The administrative expenses for the year ended 31 December 2024 were approximately RMB 97.2 million, a decrease of approximately RMB 34.5 million from RMB 131.7 million for the year ended December 31, 2023[75]. - The overall profit level improved due to effective cost management and operational optimization strategies[118]. Shareholder Information - The Company has maintained a capital structure with issued share capital of approximately RMB 185.67 million, equivalent to about HK$ 209.45 million as of December 31, 2024[101]. - The total number of issued ordinary shares of the Company was 2,094,465,417 as of December 31, 2024[3]. - Resuccess holds 1,357,442,690 shares, representing 64.8% of the total issued share capital[1]. - Vast Stone Limited holds 177,227,723 shares, accounting for 8.5% of the total issued share capital[1]. - The Company did not declare any dividend for the year ended December 31, 2024, consistent with the previous year[112]. Future Outlook - The Group aims to embrace an innovation-driven development philosophy to ensure stable growth in a challenging environment[18]. - The company will hold its Annual General Meeting on June 20, 2025, in Hong Kong[152].

Financial Performance - For the fiscal year ending December 31, 2024, the total revenue was RMB 746,140,000, a decrease of 5.1% compared to RMB 786,110,000 in 2023[3] - Gross profit for the year was RMB 322,068,000, down from RMB 345,870,000, reflecting a gross margin of approximately 43.2%[3] - Net profit for the year increased to RMB 37,918,000, representing a growth of 37.0% from RMB 27,675,000 in the previous year[4] - Basic and diluted earnings per share rose to RMB 1.78, compared to RMB 1.28 in 2023, marking a 39.1% increase[4] - Total comprehensive income for the year was RMB 53,747,000, down from RMB 80,518,000, indicating a decline of 33.3%[5] - Revenue from North America for the fiscal year 2024 was RMB 721,233,000, a decrease from RMB 755,123,000 in 2023, reflecting a decline of approximately 4.5%[20] - Total revenue for the year ended December 31, 2024, was approximately RMB 746.1 million, a decrease of RMB 40.0 million compared to RMB 786.1 million for the year ended December 31, 2023[34] Assets and Liabilities - Non-current assets totaled RMB 481,780,000, slightly down from RMB 484,004,000 in 2023[6] - Current assets increased to RMB 1,406,021,000 from RMB 1,332,877,000, reflecting a growth of 5.5%[6] - The company reported total assets as of December 31, 2024, amounted to RMB 1,887,801,000, with the China lighting segment holding RMB 364,606,000 and the US segment holding RMB 359,899,000[17] - The total liabilities for the group were RMB 271,404,000, with the US lighting segment accounting for RMB 193,973,000 of this total[17] - Total liabilities as of December 31, 2024, were approximately RMB 271.4 million, up from RMB 254.2 million as of December 31, 2023[45] Operational Highlights - The company continues to focus on manufacturing and trading lighting products, as well as providing lighting solutions[11] - The China lighting segment generated revenue of RMB 67,477,000, while the US lighting segment contributed RMB 678,663,000, indicating a significant reliance on the US market[17] - The adjusted profit before tax for the US lighting segment was RMB 30,158,000, while the China segment reported a loss of RMB 4,564,000, highlighting performance disparities between regions[18] - The lighting division's revenue experienced a slight decline compared to the previous year, but profitability increased, primarily due to optimized procurement strategies in the U.S. lighting division[57] Income and Expenses - The cost of sold inventory decreased to RMB 419,993,000 in 2024 from RMB 444,785,000 in 2023, reflecting a reduction of 5.6%[23] - Research and development costs increased to RMB 6,410,000 in 2024 from RMB 5,609,000 in 2023, marking a rise of 14.3%[23] - Total financial costs decreased to RMB 1,332,000 in 2024 from RMB 1,532,000 in 2023, a decline of 13.0%[24] - The income tax expense for 2024 was RMB 10,154,000, down from RMB 13,705,000 in 2023, indicating a decrease of 26.5%[24] - Other income increased to RMB 52,366,000 in 2024 from RMB 46,190,000 in 2023, representing a growth of 4.5%[22] Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the annual performance for the year ending December 31, 2024, and confirmed that the financial statements comply with applicable accounting standards[66] - The company has committed to good corporate governance practices and has adhered to the corporate governance code throughout the reporting period[64] - The company has maintained a public float of at least 25% of its issued share capital as required by the listing rules throughout the reporting period[70] - The company has adopted the standard code of conduct for securities trading by directors, confirming compliance by all directors for the reporting period[65] Employee and Operational Changes - The total number of employees as of December 31, 2024, is 453, down from 472 as of December 31, 2023[61] - The company has not made any significant investments or acquisitions during the review period and has no detailed future plans for major investments or capital assets as of December 31, 2024[55] Dividends and Share Capital - No dividends were recommended for the years ended December 31, 2024, and December 31, 2023[32] - As of December 31, 2024, the company's issued share capital is approximately RMB 185,672,000, equivalent to about HKD 209,447,000, divided into 2,094,465,417 shares of HKD 0.10 each[50]

Revenue and Profit - The total revenue for the period was approximately RMB 294.4 million, representing a decrease of approximately RMB 32.2 million compared to RMB 326.6 million for the six months ended June 30, 2023[9]. - Revenue and profit of the Company were lower than the same period last year, with the USA lighting segment focusing on high-margin sales channels and promotional marketing[48]. - Profit attributable to owners of the parent was approximately RMB 11.6 million, down from RMB 15.2 million for the six months ended June 30, 2023, mainly due to decreased gross profit and increased operating expenses[24]. - Profit before tax decreased to RMB 14,794,000, a decline of 36.6% from RMB 23,359,000 in the previous year[119]. - Profit for the period was RMB 11,763,000, down 24.0% from RMB 15,601,000 in 2023[120]. - Basic and diluted earnings per share attributable to ordinary equity holders of the parent decreased to RMB 0.55, compared to RMB 0.72 in 2023[119]. - Total comprehensive income for the period was RMB 16,978,000, significantly lower than RMB 65,204,000 in the same period last year[121]. Costs and Expenses - The cost of goods sold for the period was approximately RMB 161.6 million, a decrease of approximately RMB 25.4 million from RMB 187.0 million for the six months ended June 30, 2023[10]. - Total operating expenses were approximately RMB 144.9 million, an increase of RMB 2.4 million from RMB 142.5 million for the six months ended June 30, 2023, primarily due to increased marketing expenses in the USA lighting segment[19]. - Selling and distribution expenses increased to RMB (98,749,000) from RMB (91,445,000), indicating a rise of 8.9%[119]. - Administrative expenses also rose to RMB (46,134,000) from RMB (51,104,000), showing a decrease of 9.7%[119]. Gross Profit and Margin - The Group recorded a gross profit of approximately RMB132.8 million, a decrease of RMB6.8 million from RMB139.6 million for the six months ended 30 June 2023, primarily due to a decline in orders[14]. - The gross profit margin increased to approximately 45.1%, up 2.4% from 42.7% for the six months ended 30 June 2023, attributed to a focus on higher margin products and improved margins in the USA lighting segment[14]. Assets and Liabilities - Total assets were approximately RMB1,809.2 million, a slight decrease from RMB1,816.9 million as of 31 December 2023, while total liabilities decreased to approximately RMB229.6 million from RMB254.2 million[29]. - The Group's current assets were approximately RMB1,336.2 million, while non-current assets were approximately RMB473.0 million, reflecting a decrease in non-current assets mainly due to reduced right-of-use assets[29]. - Cash and cash equivalents increased from RMB 498,097,000 on December 31, 2023, to RMB 514,593,000 on June 30, 2024, an increase of approximately 3.3%[123]. - Total current liabilities decreased from RMB 197,069,000 on December 31, 2023, to RMB 181,831,000 on June 30, 2024, a reduction of approximately 7.7%[124]. - Non-current liabilities decreased from RMB 57,162,000 on December 31, 2023, to RMB 47,748,000 on June 30, 2024, a decline of approximately 16.4%[125]. Cash Flow - Net cash flows from operating activities for the six months ended June 30, 2024, were RMB 6,889,000, a decrease from RMB 11,406,000 in the same period of 2023, representing a decline of approximately 39.5%[129]. - Cash generated from operations decreased significantly to RMB 8,457,000 compared to RMB 33,169,000 in the previous year, indicating a drop of about 74.5%[129]. - Net cash flows used in investing activities amounted to RMB (33,656,000), a substantial reduction from RMB (319,556,000) in the prior year, reflecting a decrease of approximately 89.5%[130]. - The net decrease in cash and cash equivalents for the period was RMB (31,989,000), compared to RMB (313,958,000) in the same period of 2023, indicating a significant improvement[130]. Market and Product Development - The decrease in revenue was mainly due to weak recovery in the international market and existing products in the PRC lighting segment failing to meet the latest consumer demands[11]. - The existing products of the PRC lighting segment failed to meet the latest consumer demands, leading to a decline in order volume and revenue[48]. - The Company plans to expand the categories of lighting products to enhance market competitiveness[48]. - The Group focused on distribution and marketing efforts, cultivating a new sales team and promoting a new brand of lighting products[51]. - The Group's R&D efforts focus on product design, new product development, and improving production efficiency to reduce overall production costs[52][54]. Corporate Governance - The Company is committed to establishing good corporate governance practices to ensure transparency and accountability to shareholders[57][59]. - The Company complied with the Corporate Governance Code throughout the period, adopting recommended best practices where appropriate[60][63]. - The roles of chairman and chief executive officer are held by the same individual, which the Board believes facilitates the execution of business strategies[58][59]. Share Capital and Dividends - The Board resolved not to declare any dividend for the Period, consistent with the previous year[45]. - The Company has not declared any interim dividend for the period, consistent with the previous year[65][67]. - As of June 30, 2024, the issued share capital of the Company was RMB185,672,131, equivalent to approximately HK$209,446,542, divided into 2,094,465,417 ordinary shares[37]. Employee and Management Changes - As of June 30, 2024, the total number of employees increased to approximately 716, up from 472 on December 31, 2023[55]. - On August 20, 2024, Mr. Gao Zhi ceased to be an executive Director and various other roles within the Company[107]. - On the same date, Ms. Zhang Yuanyuan was appointed as an executive Director and assumed multiple leadership roles, including CEO and Chairperson of the Board[112].

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 294,390,000, a decrease of 9.8% compared to RMB 326,612,000 for the same period in 2023[1] - Gross profit for the same period was RMB 132,782,000, down from RMB 139,599,000, reflecting a gross margin of approximately 45%[1] - The net profit attributable to the parent company was RMB 11,610,000, a decline of 23.5% from RMB 15,181,000 in the previous year[2] - Basic and diluted earnings per share decreased to RMB 0.55 from RMB 0.72, representing a 23.6% drop[2] - The total comprehensive income for the period was RMB 16,978,000, significantly lower than RMB 65,204,000 in the prior year, primarily due to foreign exchange losses[3] - Customer contract revenue for the six months ended June 30, 2024, was RMB 294,390,000, a decrease of 9.8% from RMB 326,612,000 for the same period in 2023[17] - The group recorded a profit attributable to the owners of the parent company of approximately RMB 11.6 million, a decrease from 15.2 million for the six months ended June 30, 2023, primarily due to reduced gross profit and increased operating expenses[45] Assets and Liabilities - The company's non-current assets totaled RMB 473,005,000, a slight decrease from RMB 484,004,000 at the end of 2023[5] - Current assets increased marginally to RMB 1,336,202,000 from RMB 1,332,877,000, with cash and cash equivalents rising to RMB 514,593,000[5] - Total liabilities decreased to RMB 181,831,000 from RMB 197,069,000, indicating improved liquidity management[5] - The company's total equity increased to RMB 1,579,628,000 from RMB 1,562,650,000, reflecting a stable financial position[6] - As of June 30, 2024, total assets amounted to RMB 1,809,207,000, with the China lighting segment holding RMB 359,410,000 and the US lighting segment holding RMB 347,957,000[16] - The total liabilities as of June 30, 2024, were RMB 229,579,000, with the US lighting segment accounting for RMB 170,181,000[16] - Total assets as of June 30, 2024, were approximately RMB 1,809.2 million, down from RMB 1,816.9 million as of December 31, 2023, while total liabilities decreased to approximately RMB 229.6 million from RMB 254.2 million[47] Revenue Segmentation - For the six months ended June 30, 2024, total revenue reached RMB 326,612,000, with China lighting segment contributing RMB 39,147,000 and the US lighting segment contributing RMB 287,465,000[14] - Revenue from lighting products in North America was RMB 278,615,000, accounting for 94.6% of total customer contract revenue[17] - The company reported a total revenue of RMB 302,517,000 for the six months ended June 30, 2023, with a notable contribution from the US lighting segment[13] Operating Expenses and Profitability - Cost of goods sold for the period was approximately RMB 161.6 million, a reduction of RMB 25.4 million from RMB 187.0 million for the same period in 2023, reflecting a decrease of about 13.6%[38] - Total operating expenses for the period were approximately RMB 144.9 million, an increase of RMB 2.4 million from RMB 142.5 million for the same period in 2023, reflecting a rise of about 1.7%[42] - The adjusted profit before tax for the six months ended June 30, 2024, was RMB 23,359,000, compared to RMB 14,794,000 for the same period in 2023, indicating a significant increase[14] - The group recorded a net impairment reversal of approximately RMB 1.7 million, a decrease of RMB 4.1 million from an impairment provision of RMB 2.4 million for the six months ended June 30, 2023[41] Strategic Focus and Future Plans - The company plans to continue focusing on market expansion and product development to enhance future performance[1] - The group plans to expand its lighting product categories to improve market competitiveness, as existing products have not effectively met consumer demand, leading to a decline in orders and revenue[57] - The group will focus on developing differentiated products through effective market demand research to capture a larger market share in the second half of the year[57] Governance and Compliance - The board believes that having the same person serve as both Chairman and CEO enhances the execution of the company's business strategy and operational efficiency[60] - The company has adopted the corporate governance code and confirmed compliance with the standards for directors' securities trading during the period[62] - The board consists of a majority of non-executive and independent non-executive directors, ensuring a balance of power and authority between the board and management[60] - The mid-term financial information has been reviewed by the audit committee, and the mid-term results announcement will be published on the stock exchange and the company's website[63] Employee and Operational Metrics - The group has a total of approximately 716 employees as of June 30, 2024, an increase from 472 employees as of December 31, 2023[59] - The company has no supplier financing arrangements, thus the recent accounting standards revisions had no impact on the interim financial statements[12] - The company has maintained its classification of liabilities as current or non-current following the adoption of revised accounting standards, indicating no impact on financial position[12] Foreign Exchange and Financial Risks - The group faces foreign currency risk as several subsidiaries conduct sales and purchases in currencies other than their functional currencies, but currently has no hedging policy in place[48] - The group has pledged trade receivables and inventory with a total book value of approximately RMB 157.2 million as of June 30, 2024, to secure bank credit financing[49] - The company experienced a foreign exchange loss of RMB 12,500,000 for the six months ended June 30, 2023[21]

Financial Performance - The company experienced a slight year-on-year decrease in revenue but met its expected net profit target, achieving operating profit for two consecutive years[10]. - The company's turnover for 2023 was RMB 786 million, a decrease of 15.3% compared to RMB 928 million in 2022[75]. - Gross profit for 2023 was RMB 346 million, slightly down from RMB 348 million in 2022, resulting in a gross profit margin of 44.0%[75]. - The net profit attributable to owners of the company for 2023 was RMB 27 million, a significant recovery from a loss of RMB 272 million in 2021[75]. - The company reported a net profit margin of 3.5% for 2023, compared to a net loss margin of (31.1%) in 2021[75]. - Earnings per share for 2023 were RMB 1.3 cents, recovering from a loss of RMB 13.0 cents in 2021[75]. - The Group recorded a net profit of approximately RMB 27.7 million for the year ended 31 December 2023, compared to a net profit of approximately RMB 49.9 million for the year ended 31 December 2022, indicating a decrease of approximately RMB 22.2 million[175]. Market Environment - The overall market environment faced challenges, including high global inflation and slow economic recovery, impacting orders and contracts[10]. - The global economy is experiencing medium and slow growth, with limited growth momentum due to tight monetary policies and rising geopolitical risks[23]. - The order volume decreased due to inflationary pressures in the American market and the continued economic downturn[142]. Strategic Focus and Development - The company plans to enhance competitiveness, market share, and profitability in its core LED lighting segment through technological improvements and optimization of production processes[10]. - The company aims to provide more innovative and high-quality products and solutions in response to customer needs in the future[10]. - The company is focused on high-quality development and solidifying market growth in the post-pandemic era[9]. - In 2024, the company will focus on its existing lighting business segments, restructuring industries, and divesting high-risk, low-efficiency sectors[23]. - The company plans to streamline its organizational structure to promote high-quality development and seek promising projects aligned with its development philosophy[23]. - The company is committed to promoting a positive business development trend despite the complex global economic environment[23]. Shareholder and Management Relations - The management expressed gratitude to shareholders, customers, partners, and suppliers for their support[14]. - The company acknowledges the support from shareholders, clients, and partners, expressing gratitude for contributions from the Board and employees[25]. - The board of directors underwent changes, with new appointments and resignations effective October 16, 2023[1]. Supply Chain and Marketing - The company emphasizes the importance of building an efficient supply chain platform and establishing a diversified marketing model[10]. - The Group focused on distribution and marketing efforts, cultivating new sales channels and promoting a new brand of lighting products in the fastest growing markets[108]. - The Group's branding establishment and sales channel deployment improved customer service in energy-saving technologies and solutions[108]. - The Group's efforts in marketing and distribution have been aimed at improving brand recognition and customer engagement[108]. Financial Position and Assets - Total assets as of December 31, 2023, were RMB 1,817 million, an increase from RMB 1,729 million in 2022[75]. - Total equity increased to RMB 1,563 million in 2023, up from RMB 1,482 million in 2022[75]. - As at 31 December 2023, the Group had cash and cash equivalents of approximately RMB 498.1 million, with a gearing ratio of 2.8%, down from 3.4% as of 31 December 2022[175]. - Current assets increased to approximately RMB 1,332.9 million as at 31 December 2023, up from approximately RMB 1,298.2 million as of 31 December 2022, primarily due to an increase in loans to the ultimate holding company[177]. Compensation and Incentive Plans - The compensation policy includes a basic salary, incentive bonuses linked to performance, and share option schemes[60][63][64]. - The Company has adopted various share option and incentive plans to attract and retain talent[64][74]. - The Share Award Scheme, adopted on April 13, 2018, has approximately 4 years remaining and aims to align the interests of selected participants with shareholders through share ownership[105]. Loans and Financial Transactions - A loan of RMB 400 million was granted to Tongfang Technology Park at an interest rate of 3.65% as part of continuing connected transactions[38]. - The company entered into a loan agreement to provide revolving loans of up to RMB 400,000,000 to Tsinghua Tongfang Co., Ltd. from March 13, 2023, to March 12, 2026[196]. - The repayment framework agreement with Mr. Wang Lifeng includes a remaining principal repayment of HK$ 175.45 million by September 30, 2025, and accrued interests of approximately HK$ 43.07 million by October 31, 2027[199].

Financial Performance - The company reported a net profit of RMB 27,675,000 for the year, compared to RMB 49,882,000 in the previous year, indicating a decline in profitability [1]. - For the year ended December 31, 2023, the group recorded a profit from continuing operations of RMB 41.38 million, a decrease of approximately 58.9% compared to RMB 100.66 million for the year ended December 31, 2022 [43]. - The company recorded a net profit of approximately RMB 27.7 million for the year ended December 31, 2023, down from RMB 49.9 million for the year ended December 31, 2022, reflecting a significant decrease [79]. - The net profit from continuing operations for the year was RMB 27,675 thousand, down from RMB 85,781 thousand in the previous year, indicating a decline of about 67.7% [116]. - The total comprehensive income for the year ended December 31, 2023, was RMB 80,518 thousand, compared to RMB 105,636 thousand in 2022, representing a decrease of approximately 23.7% [105]. - The group recorded a profit attributable to equity holders of the parent of approximately RMB 26.8 million for the year ended December 31, 2023, a decrease of approximately 22.0 million from a profit of RMB 48.8 million for the year ended December 31, 2022, mainly due to increased operating expenses in the US lighting division [187]. Revenue and Sales - Revenue for the year was RMB 786,110 thousand, a decrease of 15.2% from RMB 927,506 thousand in 2022 [127]. - Total revenue from external customers reached RMB 927,506 thousand, with RMB 171,554 thousand from China and RMB 755,952 thousand from the United States, representing a year-over-year increase [137]. - Revenue from customer B in the US lighting division was approximately RMB 84,063,978, accounting for over 10% of the group's total revenue [12]. - Revenue from the U.S. lighting segment for the fiscal year ending December 31, 2022, was approximately RMB 102,734,000, accounting for over 10% of the group's total revenue [161]. - For the fiscal year ending December 31, 2023, the total revenue from continuing operations was approximately RMB 7,861 million, a decrease of about 15.2% from RMB 9,275 million for the fiscal year ending December 31, 2022 [179]. Expenses and Costs - Sales and distribution expenses for the year amounted to approximately RMB 221.2 million, an increase of about RMB 18.3 million from RMB 202.9 million in the previous year, attributed to inflation, exchange rate changes, and increased promotional activities for new products [54]. - Administrative expenses for continuing operations were approximately RMB 131.7 million for the year ended December 31, 2023, an increase of approximately RMB 28.1 million from RMB 103.6 million for the year ended December 31, 2022, primarily due to inflation and increased labor costs in the US lighting division [185]. - The cost of goods sold decreased to RMB 444,785 thousand from RMB 556,707 thousand year-over-year, indicating improved cost management [141]. - The increase in operating expenses in the US lighting division was a significant factor contributing to the decline in profit for the year ended December 31, 2023 [187]. Assets and Liabilities - Current assets increased to approximately RMB 1,332.9 million from RMB 1,298.2 million, driven by an increase in loans to the ultimate holding company by approximately RMB 395.4 million [39]. - As of December 31, 2023, the company's current liabilities and non-current liabilities were approximately RMB 197.1 million and RMB 57.2 million, respectively, with non-current liabilities increasing mainly due to a deferred tax liability increase of approximately RMB 14.4 million [81]. - The total assets amounted to RMB 1,728,845 thousand, with RMB 334,023 thousand in China and RMB 425,659 thousand in the United States [137]. - The group reported total assets of approximately RMB 1,816.9 million, an increase from RMB 1,728.8 million as of December 31, 2022, and total liabilities of approximately RMB 254.2 million, up from RMB 246.7 million [189]. Equity and Shareholder Information - Total equity attributable to the owners of the parent company increased to RMB 1,562,650,000 from RMB 1,482,132,000, reflecting a growth of approximately 5.4% [2]. - Non-controlling interests increased to RMB 1,552,973,000 from RMB 1,473,421,000, showing a growth of approximately 5.4% [2]. - The company has maintained a public float of at least 25% of its issued share capital as required by the listing rules [76]. - The board decided not to declare any dividends for the year ended December 31, 2023, similar to the previous year [64]. - The group did not recommend any dividend distribution for the fiscal years ending December 31, 2023, and December 31, 2022 [177]. Operational Strategy and Development - The group plans to focus on developing its LED lighting business, enhancing brand image, and increasing international market recognition while optimizing operational strategies [66]. - The group is actively establishing sales channels in the fastest-growing global markets and promoting new brand lighting products [67]. - The research and development efforts are concentrated on product design, new product development, and improving production efficiency to reduce overall production costs [68]. - The company has adjusted its sales strategy and optimized its personnel structure to reduce costs and improve efficiency in response to market challenges, with revenue and profit primarily coming from the US lighting division [88]. - The company is shifting production capacity from its China lighting division to a factory in Vietnam to reduce trade and production costs [88]. Governance and Compliance - The company has committed to establishing good corporate governance practices to ensure transparency and accountability to shareholders [93]. - The audit committee has reviewed the annual performance for the year ended December 31, 2023, and confirmed that the financial statements comply with applicable accounting standards and regulations [96]. - A loan agreement was established on January 3, 2023, providing a revolving loan of up to RMB 400 million, approved by independent shareholders on March 10, 2023 [193].

Share Incentive Plans - The maximum number of restricted shares that may be granted to a selected participant at any one time or in aggregate cannot exceed 1% of the issued share capital of the Company as of the adoption date on April 13, 2018, which is 20,985,254 shares[27]. - As of June 30, 2023, the number of restricted shares available for grant under the Share Award Scheme is 209,852,541 shares[29]. - Since the adoption of the 2016 Share Option Scheme, no share options have been granted[14]. - The Share Award Scheme is a long-term incentive plan approved on April 13, 2018, and will terminate 10 years from the adoption date, with approximately 5 years remaining[38]. - The Stock Options granted under the Subsidiary Share Incentive Plan have an exercisable term of 10 years and vest in three stages: 30% after the first anniversary, 30% after the second anniversary, and 40% after the third anniversary of the Vesting Commencement Date[1]. - The total number of shares subject to the Stock Options is contingent upon the grantee continuing to provide services to the Company as of each vesting date[1]. - The Company has not issued any share options since the adoption of the 2016 Share Option Scheme, indicating a potential focus on other forms of compensation[14]. - The Share Award Scheme aligns the interests of selected participants directly with shareholders through ownership of shares[37]. - The Board or authorized person may determine the number of restricted shares to be granted and select participants at their discretion[23]. - The remaining life of the Share Award Scheme is approximately 5 years, indicating a limited time frame for potential grants[38]. - The company did not grant any shares under the Share Award Scheme since its adoption on April 13, 2018[46]. Financial Performance - Profit for the period for the six months ended June 30, 2023, was RMB 15,601,000, a decrease of 14.3% compared to RMB 18,333,000 for the same period in 2022[64]. - Total comprehensive income for the period was RMB 65,204,000, an increase of 36.1% from RMB 47,874,000 in the previous year[66]. - Basic and diluted earnings per share attributable to ordinary equity holders of the parent for the period was RMB 0.72, down from RMB 0.85 in the same period last year, representing a decline of 15.3%[71]. - Other comprehensive income for the period, net of tax, was RMB 49,603,000, compared to RMB 29,541,000 in the previous year, indicating an increase of 67.9%[66]. - The company reported a net other comprehensive income that will not be reclassified to profit or loss of RMB 77,069,000 for the period, compared to RMB 62,269,000 in the previous year, an increase of 23.8%[66]. - The company reported a significant cash outflow of RMB 400,000 from the disposal of property, plant, and equipment[79]. - The total revenue from continuing operations for the period was approximately RMB 326.6 million, representing a decrease of approximately 4.9% compared to RMB 343.6 million for the six months ended 30 June 2022[180]. - The Group recorded a gross profit of approximately RMB 139.6 million, an increase of RMB 23.5 million over the gross profit of approximately RMB 116.1 million for the six months ended 30 June 2022[169]. - The gross profit margin for continuing operations was approximately 42.7%, representing an increase of 8.9 percentage points over the gross profit margin of approximately 33.8% for the six months ended 30 June 2022[170]. - The tax charge for continuing operations was approximately RMB 7.8 million, compared to RMB 5.1 million for the six months ended 30 June 2022[187]. Assets and Liabilities - Net assets as of June 30, 2023, amounted to RMB 1,547,336,000, up from RMB 1,482,132,000 at the end of 2022, reflecting a growth of 4.4%[67]. - Total assets as of June 30, 2023, increased to RMB 1,765,830, up from RMB 1,728,845 as of December 31, 2022, representing a growth of approximately 2.1%[98]. - Total liabilities decreased to RMB 218,494 as of June 30, 2023, from RMB 246,713 as of December 31, 2022, indicating a reduction of about 11.4%[98]. - The PRC lighting segment assets rose to RMB 392,876, compared to RMB 334,023 at the end of 2022, reflecting an increase of approximately 17.5%[98]. - The USA lighting segment liabilities decreased to RMB 160,067 from RMB 175,268, showing a decline of about 8.7%[98]. - The other segment assets increased to RMB 987,093 from RMB 969,163, marking a growth of approximately 1.8%[98]. - Current assets were approximately RMB 1,290.1 million, while non-current assets increased to approximately RMB 475.7 million, up from RMB 430.6 million as of December 31, 2022, driven by an increase in investment properties[192]. - The increase in non-current assets included approximately RMB 55.4 million attributed to the leasing out of factory premises in the PRC lighting segment[192]. Cash Flow - For the six months ended June 30, 2023, net cash flows from operating activities were RMB 11,406, compared to a net outflow of RMB 52,405 in the same period of 2022[79]. - Cash flows from investing activities showed a net outflow of RMB 319,556, a significant decrease from a net inflow of RMB 7,956 in the previous year[81]. - The company reported a net decrease in cash and cash equivalents of RMB 313,958, compared to a decrease of RMB 22,581 in the prior year[81]. - The total cash and cash equivalents at the end of the period were RMB 394,868, a decrease from RMB 681,298 at the end of June 2022[81]. - As of June 30, 2023, the Group's cash and cash equivalents amounted to RMB 394.9 million, with a gearing ratio of 3.1%, down from 3.4% as of December 31, 2022[189]. Segment Performance - Segment revenue for external customers was RMB 326,612 for the first half of 2023, compared to RMB 343,607 in the same period of 2022[91]. - Profit before tax from continuing operations was RMB 23,359 for the six months ended June 30, 2023, down from RMB 38,003 in the previous year[91]. - The USA lighting segment generated revenue of approximately RMB 315.3 million, accounting for the majority of total revenue, while the PRC lighting segment contributed approximately RMB 207,000[142]. - Revenue from the PRC lighting segment decreased by approximately RMB 10.5 million due to a decrease in orders resulting from the ongoing economic downturn in the international market[180]. - The increase in gross profit was primarily due to the expansion of sales channels with high gross profit from the USA lighting segment and the increase in product prices for the PRC lighting segment[169]. Strategic Focus - The group plans to continue focusing on the development and distribution of lighting products in both domestic and international markets, aiming for further market expansion[120]. - The group is committed to enhancing its product offerings and exploring new technologies to maintain competitive advantage in the lighting industry[120]. - The Group aims to enhance its market presence and improve operational efficiency through strategic initiatives in product development and market expansion[180].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Neo-Neon Holdings Limited 同方友友控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：01868） 截至二零二三年六月三十日止六個月之 中期業績公告 中期業績 同方友友控股有限公司董事會欣然宣佈本集團截至二零二三年六月三十日止六個 月的未經審核中期業績，連同截至二零二二年六月三十日止六個月的未經審核比 較數字。該等本期間業績已經審核委員會審閱，而審核委員會僅由獨立非執行董 事組成。 中期簡明綜合損益表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 附註 二零二三年 二零二二年 人民幣千元 人民幣千元 （未經審核）（未經審核） 持續經營業務 收入 4 326,612 343,607 銷售成本 (187,013) (227,556) 毛利 139,599 116,051 ...

Financial Performance - For the year ended December 31, 2022, the Group recorded a net profit of approximately RMB 49.9 million, compared to a net loss of approximately RMB 271.2 million for the year ended December 31, 2021[1]. - The profit attributable to owners of the parent for the year ended 31 December 2022 was approximately RMB 48.8 million, an increase of approximately RMB 321 million over a loss of approximately RMB 272.2 million for the year ended 31 December 2021[26]. - The company successfully turned a loss into profit in 2022, achieving growth in both revenues and gross profit despite market challenges[52]. - The company reported a significant improvement in profitability, with the gross profit margin increasing to 37.5% in 2022 from 21.0% in 2018[126]. - The net profit margin showed a recovery, moving from a loss of 31.1% in 2021 to a profit margin of 5.4% in 2022[126]. Revenue and Sales - For the year ended 31 December 2022, the total revenue of continuing operations was approximately RMB 927.5 million, representing an increase of approximately 7.4% compared to approximately RMB 863.9 million for the year ended 31 December 2021[34]. - The revenue from continuing operations for the year ended December 31, 2022, was approximately RMB 927.5 million, representing an increase of approximately RMB 63.6 million or 7.4% compared to RMB 863.9 million for the year ended December 31, 2021[36][39]. - The USA lighting segment achieved significant revenue growth, contributing approximately RMB 39.5 million to the overall revenue increase, while the PRC lighting segment contributed approximately RMB 24.1 million[40]. - The main revenue source for the company remains the US lighting division, which implemented a strategy to increase high-margin sales channels[135]. - The Chinese division turned a profit after addressing historical bad assets, contributing to the overall financial recovery[135]. Assets and Liabilities - As of December 31, 2022, the Group had cash and cash equivalents of approximately RMB 783.3 million, with a gearing ratio of 3.4%, down from 6.0% as of December 31, 2021, due to the repayment of short-term borrowings of RMB 36.7 million[4]. - The Group's total assets as of December 31, 2022, were approximately RMB 1,728.8 million, an increase from approximately RMB 1,653.3 million as of December 31, 2021[4]. - The Group's total liabilities as of December 31, 2022, were approximately RMB 246.7 million, down from approximately RMB 276.8 million as of December 31, 2021[4]. - The Group's current liabilities decreased to approximately RMB 196.8 million as of December 31, 2022, from RMB 233.8 million as of December 31, 2021, mainly due to a reduction in interest-bearing bank borrowings of approximately RMB 36.7 million[4]. Expenses - The cost of sales for continuing operations was approximately RMB 579.9 million for the year ended December 31, 2022, a decrease of approximately RMB 48.6 million from approximately RMB 628.5 million for the year ended December 31, 2021[13]. - The selling and distribution expenses for continuing operations were approximately RMB 202.9 million, an increase of approximately RMB 41.4 million over approximately RMB 161.5 million for the year ended 31 December 2021[34]. - The administrative expenses for continuing operations were approximately RMB 103.6 million, representing an increase of approximately RMB 1.9 million over approximately RMB 101.7 million for the year ended 31 December 2021[34]. - The finance costs for continuing operations were approximately RMB 3.3 million, a decrease of approximately RMB 0.6 million compared to approximately RMB 3.9 million for the year ended 31 December 2021[19]. Strategic Focus and Future Plans - The company plans to enhance support and resources for its core LED lighting business, focusing on R&D and technological innovation to improve market share and profitability[54]. - The company aims to deepen its traditional LED market while exploring new opportunities in smart LED technology to stabilize performance and maintain market share[54]. - The company plans to focus on the LED lighting segment, develop new products to enter new markets, and increase promotion efforts on social media to gradually occupy the lighting market and increase profit sources[162]. - The company will continue to strengthen its organization to achieve steady growth in business and market, focusing on cultivating international management talents[166]. - The Group plans to enhance support and resources in its core LED lighting segment, aiming to increase market share and profitability through technological innovation and product upgrades[91]. Operational Management - The Group's operational management is led by experienced executives with backgrounds in engineering and business administration, ensuring effective leadership[103]. - The financial management team has extensive experience, with key personnel holding significant positions in major financial institutions[108]. - The Group's independent non-executive directors bring a wealth of experience from various industries, enhancing governance and strategic oversight[109]. Employee and Organizational Structure - As of 31 December 2022, the total number of employees was 557, down from 703 in the previous year, with competitive salaries reviewed annually[192]. - The remuneration of employees is maintained at a competitive level and is reviewed annually based on market conditions and economic circumstances[194]. - The board's remuneration is determined based on various factors, including market conditions and the responsibilities of each director[194]. Market Conditions and Challenges - The global economic recovery remains weak, with rising uncertainties and risks impacting the business environment[67]. - The company is currently facing uncertainties due to geopolitical tensions and the dual challenges of regional conflicts and the pandemic[135]. - The management is actively responding to challenges to achieve stable revenue growth and improved profitability[135].

Financial Performance - For the year ended December 31, 2022, the company reported total revenue of RMB 927.5 million, an increase from RMB 863.9 million in the previous year, representing a growth of approximately 7.4%[15] - The gross profit for the year was RMB 347.6 million, compared to RMB 235.4 million in the prior year, indicating a significant increase of about 47.5%[15] - The net profit attributable to the owners of the parent company was RMB 49.9 million, a recovery from a loss of RMB 271.2 million in the previous year[17] - The total comprehensive income for the year was RMB 105.6 million, compared to a loss of RMB 284.8 million in the previous year, marking a substantial turnaround[20] - The company reported a decrease in sales costs to RMB 579.9 million from RMB 628.5 million, reflecting a reduction of approximately 7.7%[15] - The adjusted profit before tax from continuing operations was RMB 100,663,000, compared to a loss of RMB 34,872,000 in the previous year[55][57] - The company reported a basic earnings per share of RMB 48,771, compared to a loss of RMB 272,178,000 in the previous year[91] - The net profit for the year ended December 31, 2022, was approximately RMB 49.9 million, a significant improvement from a net loss of RMB 271.2 million for the year ended December 31, 2021[135] - For the year ended December 31, 2022, the company recorded a profit attributable to equity holders of approximately RMB 48.8 million, a significant increase of approximately RMB 321 million compared to a loss of RMB 272.2 million for the year ended December 31, 2021[174] - The company's earnings per share for continuing operations was RMB 4.04, compared to a loss of RMB 2.45 for the previous year[183] Assets and Liabilities - The total assets of the company as of December 31, 2022, amounted to RMB 1,932.8 million, an increase from RMB 1,653.3 million in the previous year[21] - The total liabilities as of December 31, 2022, were RMB 276,770,000, with segment liabilities of RMB 199,632,000[34] - The total assets as of December 31, 2022, amounted to RMB 1,728,845,000, with cash and cash equivalents at RMB 783,264,000[55] - Total liabilities decreased to approximately RMB 246.7 million as of December 31, 2022, from RMB 276.8 million in the previous year[111] - Current assets increased to approximately RMB 1,298.2 million as of December 31, 2022, from RMB 1,243.8 million in the previous year, driven by an increase in cash and cash equivalents of approximately RMB 84.8 million[112] Cash Flow and Investments - The company’s cash and cash equivalents increased to RMB 783.3 million from RMB 698.4 million, showing a growth of about 12.2%[21] - The company reported bank interest income of RMB 17,760,000, significantly up from RMB 2,316,000 in the previous year[62] - The company received government subsidies totaling RMB 1,708,000, down from RMB 10,364,000 in 2021[62] - The company incurred administrative expenses of RMB 19,934,000 in 2022, down from RMB 57,858,000 in 2021, reflecting a reduction in operational costs[44] - The company has not made any significant investments or acquisitions during the review period[119] Operational Changes - The company has suspended its investment advisory services, which were classified as discontinued operations in the previous year[10] - The company announced the suspension of regulated activities by its wholly-owned subsidiary, Tongfang Securities, effective December 8, 2021, ceasing to accept new clients and gradually terminating relationships with existing clients in regulated activities[67] - The company’s securities division has been classified as discontinued operations, resulting in minimal ongoing expenses compared to significant losses in the previous year[169] Market and Segment Performance - Revenue from North America for the year 2022 was RMB 146,866,000, an increase from RMB 129,487,000 in 2021, representing a growth of approximately 13.5%[37] - The revenue from the US lighting segment was RMB 755,952,000, accounting for 81.4% of total revenue, while the China lighting segment contributed RMB 171,554,000[55] - The U.S. lighting division contributed an increase of approximately RMB 39.5 million, while the China lighting division contributed an increase of approximately RMB 24.1 million to the overall revenue growth[128] Employee and Operational Efficiency - The total number of employees as of December 31, 2022, was 557, down from 703 the previous year[122] - The company’s employee benefits expenses, including salaries and wages, increased to RMB 149,390,000 in 2022 from RMB 139,870,000 in 2021, representing a rise of approximately 7%[85] - The sales and distribution expenses for continuing operations were approximately RMB 202.9 million, an increase of about RMB 41.4 million from RMB 161.5 million for the previous year, mainly due to severe inflation and increased sales channels in the U.S. lighting division[132] Risk Management and Internal Controls - The group faced certain credit risk concentration, with 100% of trade receivables being from the largest customer and the top five customers as of the reporting period[96] - The group has established a credit control department to minimize credit risk, with overdue balances reviewed regularly by senior management[96] - The company’s internal control and risk management systems were reviewed and deemed effective by the audit committee[159] Research and Development - The company’s research and development efforts are focused on product design, new product development, and improving production efficiency to reduce overall production costs[180] Dividends and Share Capital - The group did not declare any dividends for the years ended December 31, 2022, and December 31, 2021[100] - The company maintained a public float of at least 25% of its issued share capital as required by the listing rules[148] - The company did not purchase, sell, or redeem any of its listed securities during the year ended December 31, 2022[148]