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]

Financial Performance - The total revenue from continuing operations for the period was approximately RMB 343.6 million, representing an increase of approximately 3.2% compared to RMB 332.8 million for the six months ended June 30, 2021[29]. - Revenue for the six months ended June 30, 2022, was RMB 343,607,000, an increase of 3.8% compared to RMB 332,838,000 in the same period of 2021[156]. - The Group recorded a gross profit of approximately RMB 116.1 million, an increase of RMB 18.1 million over the gross profit of approximately RMB 98.0 million for the six months ended June 30, 2021[36]. - Gross profit for the same period was RMB 116,051,000, up 18.5% from RMB 97,983,000 year-on-year[156]. - For the Period, the Group recorded a profit attributable to owners of the parent of approximately RMB 17.9 million, representing an increase over a loss of approximately RMB 169.8 million for the six months ended 30 June 2021[50]. - The company reported a profit of RMB 18,333,000 for the period, a significant recovery from a loss of RMB 169,391,000 in the same period of 2021[158]. - Basic earnings per share attributable to ordinary equity holders of the parent was RMB 0.85 cents, compared to a loss of RMB 8.11 cents in the previous year[159]. - Total comprehensive income for the period was RMB 47,874,000, compared to a loss of RMB 170,484,000 in the previous year[165]. Cost and Expenses - The cost of goods sold from continuing operations was approximately RMB 227.6 million, a decrease of approximately RMB 7.3 million from RMB 234.9 million for the six months ended June 30, 2021[35]. - The Group's total operating expenses from continuing operations were approximately RMB 110.2 million, a slight increase of approximately RMB 2.0 million over RMB 108.2 million for the six months ended 30 June 2021[41]. - Selling and distribution expenses increased to RMB (68,065,000) from RMB (65,971,000) year-on-year, reflecting a rise in operational costs[156]. - Administrative expenses were RMB (42,155,000), slightly up from RMB (42,244,000) in the previous year[156]. Assets and Liabilities - As at 30 June 2022, the Group had cash and cash equivalents of RMB 681.3 million and interest-bearing bank borrowings of RMB 67.1 million, resulting in a gearing ratio of 7.7%[51]. - The Group recorded total assets of approximately RMB 1,716.3 million and total liabilities of approximately RMB 292.0 million as at 30 June 2022[56]. - Current assets increased to RMB 1,303,349,000, up from RMB 1,243,810,000, reflecting a growth of approximately 4.8%[171]. - Inventories rose to RMB 205,891,000, compared to RMB 163,828,000, indicating a year-over-year increase of about 25.7%[171]. - Trade payables decreased to RMB 87,624,000 from RMB 102,309,000, showing a reduction of approximately 14.4%[174]. - Non-current assets totaled RMB 413,010,000, slightly up from RMB 409,456,000, reflecting a marginal increase of about 0.4%[168]. - The company reported net current assets of RMB 1,052,633,000, an increase from RMB 1,010,012,000, representing a growth of approximately 4.2%[174]. - Total equity attributable to owners of the parent was RMB 1,417,367,000, compared to RMB 1,370,298,000, marking an increase of about 3.4%[191]. Other Income and Gains - The increase in other income and gains for the Period was approximately RMB 31.8 million, primarily due to an increase in bank interest income of approximately RMB 11.3 million and foreign exchange differences of approximately RMB 16.0 million[41]. - The loss after tax of the Securities Group for the Period was approximately RMB 14.5 million, a decrease of approximately RMB 134.2 million from RMB 148.7 million for the six months ended 30 June 2021[45]. - The tax charge for continuing operations was approximately RMB 5.1 million, down from RMB 7.7 million for the six months ended 30 June 2021[44]. - The finance costs for continuing operations for the Period were approximately RMB 0.9 million, a decrease of RMB 1.8 million from RMB 2.7 million for the six months ended 30 June 2021[43]. Segment Performance - Revenue from the PRC lighting segment increased by approximately RMB 24.9 million due to earlier shipments and increased product prices[31]. - The USA lighting segment generated the most revenue and profit during the period, although performance was marginally lower than last year due to lower gross profit margins[70]. - The PRC lighting segment achieved a turnaround during the period after disposing of non-performing legacy assets, improving gross margins[70]. Governance and Management - The Company complied with the Corporate Governance Code throughout the Period and adopted recommended best practices[83]. - The Board believes that having the same individual serve as both chairman and chief executive officer can enhance operational efficiency[80]. - The Board consists of five non-executive and independent non-executive Directors out of seven, ensuring a balance of power[80]. - The Company will periodically review its governance structure and make necessary arrangements as deemed appropriate[80]. - The audit committee reviewed the Group's unaudited interim results and financial statements for the six months ended 30 June 2022[91]. Share Capital and Options - The issued share capital of the Company was RMB 185,672,131, equivalent to approximately HK$ 209,446,542, unchanged from December 31, 2021[62]. - As of June 30, 2022, THTF ES held 1,348,360,690 ordinary shares, representing 64.4% of the total issued share capital[101]. - Resuccess Investments Limited had an interest in 1,357,442,690 ordinary shares, accounting for 64.8% of the total issued share capital[101]. - The maximum number of shares that may be issued under the 2016 Share Option Scheme is 193,931,969 Shares, representing approximately 10% of the issued share capital as of May 13, 2016, and approximately 9.26% as of the report date[108]. - No option may be granted to any participant such that the total number of shares issued and to be issued upon exercise exceeds 1% of the Company's issued share capital in any 12-month period[109]. - The 2016 Share Option Scheme allows options to be exercised at any time during a period determined by the Board, not exceeding 10 years from the grant date[112]. - Participants of the 2016 Share Option Scheme must pay HK$1.0 upon acceptance of the grant within 28 days after the offer date[112]. - The exercise price of the options is determined by the Board and shall not be less than the highest of the nominal value of a share, the closing price on the offer date, or the average closing price for the five business days preceding the offer date[113]. - The 2016 Share Option Scheme will be valid for 10 years from the adoption date, after which no further options will be granted[114]. - A total of 193,931,969 shares, representing 9.26% of the issued share capital, may be issued upon the exercise of all options under the 2016 Share Option Scheme[118]. - No share options have been granted since the adoption of the 2016 Share Option Scheme[118]. - The Subsidiary Share Incentive Plan allows for awards covering up to 3,632 shares of common stock, subject to limitations under the Internal Revenue Code[120]. - The total number of shares issued and to be issued upon the exercise of options granted to each Service Provider shall not exceed 1% of shares of common stock in issue as of the date of grant[123]. - The exercise price for each option shall be not less than 100% of the Option Exercise Price, determined based on market conditions[125]. - The Subsidiary Share Incentive Plan allows stock options to vest over a 10-year term, with 30% vesting on the first anniversary, an additional 30% on the second anniversary, and the remaining 40% on the third anniversary[138]. - No share options were granted, exercised, lapsed, or cancelled under the Subsidiary Share Incentive Plan during the reporting period[140]. - The Share Award Scheme, adopted on April 13, 2018, aligns selected participants' interests with shareholders through ownership of shares[141]. - No shares have been granted under the Share Award Scheme since its adoption[145].

Financial Performance - The company reported a turnover of RMB 875 million for the year ended December 31, 2021, a slight decrease from RMB 877 million in 2020[26]. - Gross profit for 2021 was RMB 246 million, resulting in a gross profit margin of 28.1%, down from 32.2% in 2020[26]. - The net loss attributable to owners of the company was RMB 272 million in 2021, compared to a loss of RMB 28 million in 2020, reflecting a net profit margin of (31.1%) for the year[26]. - Total assets decreased to RMB 1,653 million in 2021 from RMB 2,239 million in 2020, while total equity also fell to RMB 1,376 million from RMB 1,661 million[26]. - The total revenue from continuing operations for the year ended December 31, 2021, was approximately RMB 863.9 million, representing an increase of approximately 2.4% compared to RMB 843.5 million for the year ended December 31, 2020[57]. - The Group recorded a gross profit of approximately RMB 235.4 million for continuing operations for the year ended December 31, 2021, a decrease of approximately RMB 13.5 million compared to RMB 248.9 million for the year ended December 31, 2020[61]. - The Group recorded a loss attributable to owners of the parent of approximately RMB 272.2 million, representing an increase of approximately RMB 244.0 million over a loss of approximately RMB 28.2 million for the year ended December 31, 2020[69]. - For the year ended 31 December 2021, the Group recorded a net loss of approximately RMB 271.2 million, compared to a net loss of approximately RMB 27.4 million for the year ended December 31, 2020[71]. Business Strategy - The Group plans to increase support and resources in its core LED lighting segment, focusing on research and development to enhance market share and profitability[13]. - The company plans to focus on its core LED lighting business and divest from high-risk, low-efficiency industries in 2022[20]. - The company aims to stabilize performance and maintain market share by developing the traditional LED market and exploring smart LED opportunities[13]. - Future resource allocation will prioritize the development of the lighting segment and industries with promising market prospects[94]. - The company is actively seeking promising projects that align with its development philosophy and vision to strengthen its core business[20]. Operational Challenges - The Group faced challenges due to the COVID-19 pandemic, which impacted overseas operations and production activities, but implemented measures to minimize the impact and aims to increase revenue in the future[85]. - The financial services business segment, Tongfang Securities, faced deterioration in performance and will undergo a planned shutdown and liquidation[14]. - The company has suspended Type 1 regulated activities of Tongfang Securities due to significant losses and has resolved to cease several regulated activities as of March 25, 2022[93]. Leadership and Governance - Mr. Gao Zhi has been appointed as the executive director, president, and CEO since January 9, 2020, and is responsible for all businesses except financial operations[32]. - The company has a diverse board with members holding significant experience in finance and management, enhancing its strategic decision-making capabilities[45]. - The board's composition reflects a commitment to governance and accountability, with independent directors providing oversight[42]. - The management team includes professionals with advanced degrees from prestigious institutions, contributing to the company's operational excellence[32][33][38][41][42]. Market Performance - The USA lighting segment demonstrated remarkable results, highlighting the effectiveness of advance planning and an efficient supply chain platform[13]. - Revenue from the USA lighting segment increased by approximately RMB 20.8 million during the year ended December 31, 2021, contributing to the overall revenue growth[59]. - The USA lighting segment achieved significant growth in both revenue and profit, focusing on developing a robust product line and an integrated online and offline channel network[92][97]. Employee and Compensation Policies - The compensation policy includes a basic salary, incentive bonus, and share option schemes to attract and retain talent[190]. - The company has implemented a performance-linked bonus system for employees, with bonuses paid only in years where profit and other performance targets are met[196]. - The Group provides additional customary benefits such as retirement fund schemes, medical benefits, insurance, and paid holidays, aligning with industry practices[200]. Shareholder Information - The Company did not declare any dividends for the year ended December 31, 2021, consistent with the previous year[88][119]. - The board will consider financial results, distributable profits, liquidity, and capital requirements when deciding on future dividend payouts[115]. - As of December 31, 2021, the total reserves available for distribution to equity shareholders of the Company amounted to RMB 1,544 million[124][126].

Revenue Performance - The total revenue for the period was approximately RMB342.5 million, representing an increase of approximately 13.0% compared to approximately RMB303.0 million for the six months ended 30 June 2020[32]. - Revenue from the lighting segment was approximately RMB332.8 million, an increase of approximately RMB49.2 million compared to approximately RMB283.6 million for the six months ended 30 June 2020, mainly due to an increase of approximately RMB50.2 million from the USA lighting segment[32]. - Revenue from the securities segment was approximately RMB9.7 million, representing a decrease of approximately 50.0% compared to approximately RMB19.4 million for the six months ended 30 June 2020, primarily due to a reduction in clients seeking advisory and asset management services caused by the COVID-19 pandemic[32]. Cost and Profitability - For the Period, the cost of goods sold was approximately RMB234.9 million, representing an increase of approximately RMB26.6 million over approximately RMB208.3 million for the six months ended 30 June 2020[34]. - The Group recorded a gross profit of approximately RMB107.7 million, representing an increase of RMB12.9 million over the gross profit of approximately RMB94.8 million for the six months ended 30 June 2020[34]. - For the lighting segment, the Group recorded a gross profit of approximately RMB98.0 million, representing an increase of approximately RMB22.6 million or 30.0% over approximately RMB75.4 million for the six months ended 30 June 2020[34]. Other Income and Expenses - The Group recorded other income of approximately RMB11.9 million, representing an increase of approximately RMB20.2 million over the other losses of RMB8.3 million for the six months ended 30 June 2020[36]. - The total operating expenses were approximately RMB142.9 million, representing a slight decrease of approximately RMB4.8 million over approximately RMB147.7 million for the six months ended 30 June 2020[38]. - The finance costs for the Period were approximately RMB2.8 million, representing a decrease of RMB10.7 million over RMB13.5 million for the six months ended 30 June 2020[39]. Loss and Financial Position - The Group recorded a loss attributable to owners of the Company of RMB169.8 million, representing an increase over a loss of RMB92.9 million for the six months ended 30 June 2020[45]. - The impairment loss of goodwill was approximately RMB95.0 million, representing an increase of approximately RMB73.3 million over approximately RMB21.7 million for the six months ended 30 June 2020[36]. - The tax charge for the Period was approximately RMB7.6 million, compared to a tax credit of RMB5.2 million for the six months ended 30 June 2020[40]. Assets and Liabilities - As of June 30, 2021, the Group recorded total assets of approximately RMB1,824.5 million, a decrease from RMB2,239.3 million as of December 31, 2020, representing a decline of about 18.6%[48]. - Total liabilities as of June 30, 2021, were approximately RMB333.7 million, down from RMB578.0 million as of December 31, 2020, indicating a reduction of approximately 42.4%[48]. - Current assets decreased to approximately RMB1,371.3 million from RMB1,712.9 million, a decline of about 20%[48]. - Non-current assets were approximately RMB453.2 million, down from RMB526.3 million, reflecting a decrease of around 13.9%[48]. Share Capital and Dividends - The issued share capital of the Company was RMB185,672,131 as of June 30, 2021, slightly decreasing from RMB185,675,677 as of December 31, 2020, due to the cancellation of treasury shares[56]. - The Group did not declare any interim dividend for the period, consistent with the previous year[56]. - The Board resolved not to declare any interim dividend for the Period, consistent with the previous year where no dividend was declared as of June 30, 2020[83]. Employee and R&D Information - The total number of employees as of June 30, 2021, was approximately 800, maintaining competitive salary levels reviewed annually[69]. - The Group's R&D efforts focused on product design, new product development, and improving production efficiency to reduce overall production costs[67]. Market and Brand Development - The USA lighting segment performed well during the period, optimizing resource allocation and integrating upstream and downstream businesses[59]. - The USA lighting segment launched two high-end brands, Proluxe and Prizm, targeting the high-end smart home market, enhancing competitiveness and gross margin[59]. - The Group actively established brands and sales channels in the world's fastest-growing markets, enhancing sales services in energy-saving technologies[63]. Corporate Governance and Compliance - The Company complied with the Corporate Governance Code throughout the period, adopting recommended best practices where appropriate[75]. - The audit committee reviewed the Group's unaudited interim results and financial statements for the six months ended June 30, 2021[83]. - The Company is responsible for the preparation and presentation of the interim financial information in accordance with HKAS 34[130]. Cash Flow and Operational Efficiency - Cash generated from operations for the six months ended June 30, 2021, was RMB 294,862,000, compared to RMB 68,540,000 in the same period of 2020[198]. - Net cash flows from operating activities amounted to RMB 274,835,000, significantly higher than RMB 80,438,000 in the previous year[198]. - The company experienced a significant increase in cash flows from operations compared to the previous year, indicating improved operational efficiency[198].

Financial Performance - The company's revenue for 2020 was RMB 877 million, a decline from RMB 841 million in 2019, representing a decrease of approximately 1.9%[12] - Gross profit for 2020 was RMB 282 million, with a gross margin of 32.2%, compared to 33.7% in 2019[12] - The net loss attributable to shareholders for 2020 was RMB 28 million, compared to a profit of RMB 23 million in 2019, indicating a significant downturn[12] - Total assets decreased to RMB 2,239 million in 2020 from RMB 2,495 million in 2019, reflecting a decline of approximately 10.3%[12] - The net profit attributable to the owners of the company was -120 million RMB in 2020, compared to -28 million RMB in 2019[15] - The net profit margin for 2020 was -3.1%, a decline from -2.7% in 2019[15] - The group recorded a net loss of approximately RMB 27.4 million for the year ended December 31, 2020, compared to a net loss of approximately RMB 22.5 million for the year ended December 31, 2019[54] - The group incurred a goodwill impairment loss of approximately RMB 21.7 million, primarily related to the securities cash-generating unit[48] - Other net income recorded was approximately RMB 23.4 million, a decrease of about RMB 63.7 million from RMB 87.1 million, mainly due to fair value losses on investment properties and goodwill impairment losses[47] Strategic Focus and Business Development - The company plans to focus on its core lighting business and optimize its industrial layout in 2021, while disposing of non-core assets[10] - The company aims to invest more resources in the lighting division and pursue innovative strategies with strong market prospects[10] - The company is focusing on expanding its market presence and enhancing its product offerings through new technology development[19] - The company plans to focus more resources on the lighting division and industries that align with its innovation-driven development strategy[70] - The company is actively developing new sales channels and promoting new lighting products in the fastest-growing global markets[72] Operational Adjustments and Challenges - The overall economic outlook remains challenging due to various global uncertainties, including trade tensions and the ongoing pandemic[10] - The company has implemented various emergency measures to mitigate the impact of COVID-19, including providing masks and facilitating remote work arrangements[10] - The North American lighting industry saw a decline in revenue and profit, but the U.S. lighting division achieved revenue and profit growth due to strict pandemic prevention measures[68] - The total number of employees decreased from approximately 1,100 to 800 by December 31, 2020, reflecting adjustments in workforce[75] Governance and Management - The company appointed Gao Zhi as the CEO and Executive Director on January 9, 2020, who has extensive experience in various roles within the company since 1997[17] - Liu Zhigang was appointed as Executive Director on November 2, 2020, bringing rich experience from his previous role at a major bank[18] - The management team includes experienced professionals with backgrounds in finance and technology, which supports strategic decision-making[21] - The board of directors is responsible for the overall management of the company, including the approval of policies and the review of operational and financial performance[159] - The board consists of seven members, including two executive directors and three independent non-executive directors, ensuring a majority of independent oversight[164] Corporate Governance - The company has established a commitment to good corporate governance practices and procedures, aiming to be transparent and accountable to shareholders[158] - The company has complied with the corporate governance code and has appointed at least three independent non-executive directors, meeting regulatory requirements[165] - The board has established four committees to assist in fulfilling its responsibilities, including an audit committee and a risk management committee[162] - The company has implemented a standard code of conduct for securities trading by directors, ensuring compliance with regulations[170] Shareholder Information - The group did not declare any dividends for the year ended December 31, 2020, consistent with the previous year[67] - The total reserves available for distribution to equity shareholders amounted to RMB 1,553 million as of December 31, 2020[90] - As of December 31, 2020, the major shareholder Tongfang Energy Holdings owned 1,348,360,690 shares, representing 64.4% of the total issued share capital[102] - Resuccess Investments Limited held 1,357,442,690 shares, accounting for 64.8% of the total issued share capital as of December 31, 2020[102] Risk Management - The company has not established any arrangements that would cause its directors and key executives to hold any interests or short positions in the company's shares or related shares[99] - The company has not disclosed any further details regarding the Subsidiary Share Award Scheme in the financial statements[128] - The company has established a governance framework to review and monitor compliance with corporate governance codes and best practices[198]

Revenue Performance - Total revenue for the period was approximately RMB 303.0 million, a decrease of about 18.7% compared to RMB 372.6 million for the six months ended June 30, 2019[7]. - Revenue for the six months ended June 30, 2020, was RMB 303,043,000, a decrease of 18.7% compared to RMB 372,568,000 for the same period in 2019[76]. - Revenue from the China lighting segment was RMB 25,735 thousand, while the US lighting segment generated RMB 257,898 thousand, contributing significantly to the overall revenue[95]. - The securities segment generated revenue of approximately RMB 19.4 million, a slight increase of about 3.7% from RMB 18.7 million for the same period last year, mainly due to increased interest income[9]. - Customer contract revenue for the first half of 2020 was RMB 289,775,000, a decrease of 19.4% compared to RMB 359,879,000 in the same period of 2019[103]. Profitability and Loss - Gross profit for the period was approximately RMB 94.8 million, down RMB 33.5 million from RMB 128.3 million for the six months ended June 30, 2019[11]. - The company reported a loss attributable to owners of the company of RMB 92.9 million, a significant decrease from a profit of RMB 11.8 million for the same period last year, primarily due to impairment losses and reduced gross profit[19]. - The company reported a net loss of RMB 15,540,000 for the first half of 2020, compared to a profit of RMB 32,546,000 in the same period of 2019[112]. - The company reported a loss before tax of RMB 98,104,000, compared to a profit of RMB 13,971,000 in the previous year[76]. - Basic and diluted loss per share was RMB 4.44, compared to earnings of RMB 0.56 per share in the prior year[76]. Expenses and Costs - Total operating expenses were approximately RMB 147.7 million, a slight decrease of about RMB 2.1 million from RMB 149.8 million for the six months ended June 30, 2019[16]. - Total sales and distribution expenses were RMB 63,160,000, a decrease from RMB 69,895,000 in the previous year[76]. - Administrative expenses were RMB 84,568,000, an increase from RMB 79,878,000 in 2019[76]. - The company incurred RMB 10,365 thousand in expenses for purchasing property, plant, and equipment during the investment activities[87]. - The company has set a target to reduce operational costs by 15% over the next year through process optimization[157]. Assets and Liabilities - As of June 30, 2020, the group reported total assets of approximately RMB 2,491.1 million, a slight decrease from RMB 2,494.7 million as of December 31, 2019[21]. - The total liabilities increased to approximately RMB 828.0 million from RMB 763.1 million as of December 31, 2019, resulting in a debt-to-equity ratio of 33.3% compared to 29.2% previously[20]. - Current liabilities rose to approximately RMB 374.5 million from RMB 331.9 million, primarily due to an increase in short-term interest-bearing bank loans by approximately RMB 21.0 million[24]. - The equity attributable to the owners of the parent decreased to RMB 1,472,264 thousand from RMB 1,541,781 thousand, showing a decline in shareholder value[82]. - The company’s goodwill decreased to RMB 203,121 thousand from RMB 220,978 thousand, reflecting potential impairments or divestitures[81]. Impairments and Losses - The company recorded a goodwill impairment loss of approximately RMB 21.7 million during the period, compared to none for the same period last year[15]. - The company recognized an impairment loss of RMB 21.7 million on its securities cash-generating unit due to adverse impacts from capital market fluctuations[123]. - Other losses amounted to approximately RMB 8.3 million, a decrease of about RMB 57.4 million compared to other income of RMB 49.1 million for the same period last year, primarily due to a decrease in fair value changes of financial assets[14]. - The company recorded an impairment provision of RMB 23,350,000, compared to a reversal of RMB 351,000 in the previous year[76]. Shareholder Information - Daniel P.W. Li holds 177,227,723 shares, representing 8.5% of the total issued share capital as of June 30, 2020[44]. - Major shareholder Tongfang Energy Holdings owns 1,348,360,690 shares, accounting for 64.4% of the total issued share capital as of June 30, 2020[50]. - Resuccess Investments Limited holds 1,357,442,690 shares, representing 64.8% of the total issued share capital as of June 30, 2020[50]. - The company did not declare any interim dividends for the period, consistent with the previous year[42]. Strategic Initiatives and Future Outlook - The group plans to continue expanding its online market presence and reduce operational costs in response to the impact of COVID-19[32]. - The company plans to continue focusing on its core segments while exploring opportunities for market expansion and new product development[92]. - The company expects a revenue growth of 10% for the second half of 2020, driven by new product launches and market expansion strategies[157]. - A strategic acquisition of a local competitor is anticipated to be finalized by Q4 2020, expected to enhance operational efficiency[157]. - The company has introduced a new product line that is projected to contribute an additional RMB 100 million in revenue by the end of 2020[157]. Cash Flow and Financing Activities - The company reported a net cash flow from operating activities of RMB 80,438 thousand for the six months ended June 30, 2020, compared to a net cash outflow of RMB 45,548 thousand in the same period of 2019[87]. - The company generated RMB 130,178 thousand from new bank loans during the financing activities, while repaying RMB 98,566 thousand in bank loans[87]. - The company’s cash flow from financing activities resulted in a net cash inflow of RMB 19,597 thousand, compared to a net cash outflow of RMB 29,094 thousand in the previous year[87]. - The company’s cash flow from operating activities was impacted by RMB 3,049 thousand in taxes paid[87]. - The company’s cash flow from investing activities included proceeds of RMB 41,624 thousand from the sale of property, plant, and equipment[87].

Financial Performance - The group's total revenue for 2019 was RMB 841 million, with a gross profit of RMB 284 million, resulting in a gross margin of 33.7%[16]. - The net loss attributable to equity holders of the company for 2019 was RMB 23 million, with a net loss margin of (2.7%) and basic loss per share of RMB (1.1)[16]. - Total revenue for the year ended December 31, 2019, was approximately RMB 841.3 million, an increase of about 21.3% from RMB 693.7 million for the year ended December 31, 2018[53]. - The adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was reported at 300 million RMB, reflecting a growth of 18.1% year-over-year[21]. - The overall financial outlook remains positive, with a target net profit margin of 33.7% for the upcoming fiscal year[29]. - The group recorded a loss attributable to owners of the parent of approximately RMB 22.9 million for the year ended December 31, 2019, a decrease of approximately RMB 168.7 million from a profit of approximately RMB 145.8 million for the year ended December 31, 2018, mainly due to the absence of a one-time government subsidy of approximately RMB 186 million in 2019[69]. - The group reported a net loss of approximately RMB 22.5 million for the year ended December 31, 2019, compared to a net profit of approximately RMB 145.9 million for the year ended December 31, 2018[70]. Revenue Growth and Segments - The core business of the group, the LED lighting segment, achieved revenue growth of over 20% in 2019, primarily due to the acquisition of the e-commerce platform Novelty focused on outdoor decorative lighting products in North America[11]. - The lighting segment accounted for approximately RMB 798.2 million in revenue, up from RMB 659.0 million, reflecting an increase of RMB 139.2 million, primarily due to a revenue increase of RMB 176.5 million in the U.S. lighting segment[54]. - The securities segment generated revenue of approximately RMB 43.1 million, an increase of RMB 8.4 million from RMB 34.7 million, driven by an increase in interest income of RMB 6.1 million and consulting and management service income of RMB 2.8 million[55]. - New product launches are expected to contribute an additional 220 million RMB in revenue, representing a 21% increase compared to the previous year[23]. Cost and Expenses - Cost of goods sold for the year was approximately RMB 557.6 million, an increase of RMB 68.0 million from RMB 489.6 million, mainly due to rising material costs[56]. - Distribution and selling expenses were approximately RMB 161.4 million, an increase of RMB 49.5 million from RMB 111.9 million, primarily due to expanded sales channels in the U.S. lighting segment[64]. - Administrative expenses were approximately RMB 173.0 million, an increase of RMB 18.7 million from RMB 154.3 million, mainly due to increased employee costs from the acquisition of Novelty Lights, LLC[64]. - The financial cost for the year ended December 31, 2019, was approximately RMB 29.3 million, an increase of about RMB 14.4 million compared to RMB 14.9 million for the year ended December 31, 2018, primarily due to increased interest from loans of approximately RMB 350.0 million from the ultimate holding company[65]. Strategic Focus and Future Plans - The company plans to focus on core business and optimize its industrial layout in 2020, including divesting high-risk and low-efficiency businesses to concentrate resources on the lighting segment[13]. - The company aims to expand its market presence, targeting a 30% increase in user base by the end of the next fiscal year[22]. - Future guidance indicates a projected revenue growth of 27.8% for the next fiscal year, driven by market expansion and new product offerings[25]. - The company plans to pursue strategic acquisitions to enhance its service portfolio, with a focus on companies that can provide complementary technologies[26]. - The management team highlighted a commitment to improving operational efficiency, aiming for a reduction in costs by 2.7% over the next year[27]. Market Conditions and Challenges - The company acknowledges the impact of external economic uncertainties, including trade tensions and global public health events, on future growth prospects[13]. - The board believes that the impact of COVID-19 will be limited to the short term, with effects expected to dissipate after the pandemic[92]. - Sales orders received as of the report date were nearly flat compared to the same period last year, indicating stability amid market uncertainties[92]. Assets and Liabilities - Total assets as of December 31, 2019, were RMB 2,495 million, while total equity was RMB 1,732 million[16]. - As of December 31, 2019, the group had total assets of approximately RMB 2,494.7 million and total liabilities of approximately RMB 763.1 million, with a debt-to-equity ratio of 29.2%, down from 33.8% as of December 31, 2018[71]. - The group had cash and cash equivalents of approximately RMB 256.9 million and short-term bank loans of approximately RMB 141.1 million as of December 31, 2019[71]. Shareholder Information - As of December 31, 2019, the company had a total of 1,348,360,690 shares held by Tongfang Energy Holdings, representing 64.4% of the total issued share capital[135]. - Resuccess Investments Limited held 1,357,442,690 shares, accounting for 64.8% of the total issued share capital as of December 31, 2019[135]. - Daniel P.W. Li held 177,227,723 shares through Vast Stone Limited, which is 8.5% of the total issued share capital as of December 31, 2019[135]. - The board decided not to declare any dividends for the year ended December 31, 2019, consistent with the previous year[107]. Compliance and Regulations - The group has maintained a public float of at least 25% of its issued share capital as required by listing rules[193]. - The group has not violated any relevant environmental regulations that significantly impacted its development and performance during the fiscal year ending December 31, 2019[199]. - The group operates in compliance with all relevant laws and regulations in mainland China and Hong Kong as of the fiscal year ending December 31, 2019[200].