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佈之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈 全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責 任。 HAITIAN INTERNATIONAL HOLDINGS LIMITED 海 天 國 際 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） 1882 （股份代號： ） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 的 全 年 業 績 公 佈 摘要 二零二二年 二零二一年 變動 人民幣百萬元 人民幣百萬元 % 收入 12,308.2 16,018.3 -23.2 毛利 3,917.5 5,151.1 -23.9 經營利潤 2,632.4 3,596.7 -26.8 本公司股東應佔利潤 2,264.7 3,052.0 -25.8 每股基本盈利 （以每股人民幣列示） 1.42 1.91 -25.8 每股股息（以每股港元列示） 全年股息 0.55 0.95 ...

Financial Performance - For the six months ended June 30, 2022, the company's revenue was RMB 6,509.6 million, a decrease of 20.9% compared to RMB 8,225.8 million in the same period of 2021[3]. - Gross profit for the same period was RMB 2,000.2 million, down 24.8% from RMB 2,659.2 million year-on-year, resulting in a gross margin of 30.7%, a decline of 1.6 percentage points from 32.3% in the first half of 2021[4]. - The net profit attributable to shareholders was RMB 1,172.3 million, a decrease of 26.0% from RMB 1,583.8 million in the previous year, with a net profit margin of 18.0%, down 1.2 percentage points year-on-year[9]. - Basic earnings per share for the reporting period were RMB 0.73, a decrease of 26.0% compared to RMB 0.99 in the same period of 2021[4]. - Operating profit decreased to RMB 1,354,593, representing a decline of 27.2% from RMB 1,863,677 in 2021[35]. - Total comprehensive income for the period was RMB 1,206,157, compared to RMB 1,561,834 in 2021, reflecting a decrease of 22.7%[36]. - The company reported a profit of RMB 1,172,258,000 for the six months ended June 30, 2022, down from RMB 1,583,757,000 in the same period of the previous year, reflecting a decline of 26.0%[40]. Sales Performance - Domestic sales amounted to RMB 4,213.3 million, representing 64.7% of total sales, a decline of 26.3% year-on-year, while overseas sales were RMB 2,296.3 million, accounting for 35.3%, down 8.3% year-on-year[10]. - The Mars series (energy-saving injection molding machines) achieved sales of RMB 4,005.8 million, down 30.8% year-on-year[12]. - The Jupiter series (two-plate injection molding machines) saw a year-on-year increase of 29.8%, with sales reaching RMB 1,156.6 million[12]. - Sales in mainland China amounted to RMB 4,213,255,000, down 26.3% from RMB 5,720,252,000 in the previous year[47]. Cash Flow and Liquidity - Cash generated from operating activities was RMB 811.0 million, down from RMB 1,478.8 million in the first half of 2021, with net cash (including financial products) at RMB 9,585.2 million as of June 30, 2022[4]. - The net cash flow from operating activities for the six months ended June 30, 2022, was RMB 810,961,000, a decrease of 45.1% compared to RMB 1,478,779,000 for the same period in 2021[41]. - The net cash used in investing activities was RMB 122,998,000 for the six months ended June 30, 2022, compared to RMB 628,151,000 in the previous year, indicating a significant reduction in investment outflows[41]. - The net cash flow from financing activities was RMB (1,168,532,000) for the six months ended June 30, 2022, compared to RMB (1,832,590,000) in 2021, reflecting a decrease in cash outflows related to financing[41]. Dividends and Shareholder Returns - The company decided not to declare an interim dividend for the reporting period, with the board considering dividend distribution after reviewing the full-year results[4]. - The company did not declare any dividends for the period, consistent with the previous year[35]. - The company declared dividends amounting to RMB 1,233,292,000 for the second interim period of 2021, which is a decrease from RMB 1,871,243,000 in the previous year[41]. Operational Challenges - The company faced significant impacts from domestic pandemic control measures, particularly in East China, affecting overall sales performance[10]. - The board emphasized the importance of operational flexibility and high efficiency in managing working capital[4]. Capital Expenditure and Investments - The group's capital expenditure for the first half of 2022 reached RMB 636.3 million, an increase of 39.4% compared to RMB 456.4 million in the same period of 2021[21]. - The company’s capital expenditure for property, plant, and equipment was RMB 615,680,000, an increase from RMB 456,389,000 in the previous year[53]. - The group had no specific future plans for significant investments or capital assets as of June 30, 2022[30]. Assets and Liabilities - Total assets as of June 30, 2022, amounted to RMB 16,487,987, a slight increase from RMB 17,751,039 at the end of 2021[38]. - Total liabilities decreased to RMB 9,004,037 from RMB 10,218,305 at the end of 2021, indicating a reduction of 11.9%[39]. - Cash and cash equivalents were RMB 3,112,053, down from RMB 3,592,622 at the end of 2021, a decrease of 13.4%[38]. - Inventory increased to RMB 3,092,713, up from RMB 3,009,566 in the previous year, reflecting a growth of 2.8%[38]. Employee and Management Information - The group employed approximately 7,100 people as of June 30, 2022, with a focus on competitive compensation and a culture of learning[24]. - The total remuneration for key management personnel for the six months ended June 30, 2022, was 5,864 thousand RMB, an increase from 4,785 thousand RMB in the same period of 2021, representing a growth of approximately 22.6%[66]. Corporate Governance - The group maintained compliance with all applicable corporate governance codes during the reporting period[31]. - The board confirmed adherence to the standards set forth in the code of conduct for securities trading during the reporting period[32].

Financial Performance - For the fiscal year ending December 31, 2021, the company's sales revenue reached RMB 16,018.3 million, an increase of 35.7% compared to 2020[15]. - The company's net profit attributable to shareholders was RMB 3,052.0 million, representing a growth of 27.8% year-on-year[15]. - Domestic sales amounted to RMB 11,088.2 million, a year-on-year increase of 33.9%, while export sales rose by 40.1% to RMB 4,930.1 million[16][17]. - The gross profit margin for the year was 32.2%, slightly down from 34.2% in the previous year[15]. - Gross profit for 2021 was RMB 5,151.1 million, up 27.5% from RMB 4,040.3 million in 2020, with a gross margin of 32.2%[25]. - The company's revenue for the year ended December 31, 2021, reached RMB 16,018.3 million, an increase of 35.7% compared to RMB 11,800.1 million in 2020[22]. - The total revenue for the year ended December 31, 2021, was RMB 16,018,272 thousand, representing a 35.5% increase from RMB 11,800,052 thousand in 2020[151]. - The operating profit for the same period was RMB 3,596,659 thousand, up 25.2% from RMB 2,873,194 thousand in 2020[151]. - The net profit attributable to shareholders for the year was RMB 3,051,968 thousand, an increase of 27.8% compared to RMB 2,388,016 thousand in 2020[151]. - The basic earnings per share for the year was RMB 1.91, compared to RMB 1.50 in the previous year, reflecting a growth of 27.3%[151]. Sales and Market Expansion - The Mars series energy-saving injection molding machines generated sales of RMB 10,944.0 million, a growth of 33.2% year-on-year[18]. - The Changfeiya electric series and Jupiter series injection molding machines saw significant sales growth of 44.3% and 54.8%, reaching RMB 2,077.5 million and RMB 2,017.3 million respectively[19]. - The company achieved a milestone by exporting over 10,000 units for the first time in 2021, with a notable increase in market share in North America, South America, Southeast Asia, and parts of Europe[17]. - The overall demand in downstream industries increased due to the company's continuous product iterations and custom models[18]. - The company plans to enhance its global market share and strengthen its marketing system and incentive mechanisms[21]. Dividends and Shareholder Returns - The company declared a second interim dividend of HKD 0.95 per share for the fiscal year, totaling HKD 0.95 for 2021, down from HKD 1.64 in 2020[15]. - The company declared a second interim dividend of HKD 0.95 per share, with total dividends for the year amounting to HKD 0.95 per share[23]. - The company declared a second interim dividend of HKD 0.95 per share, totaling approximately RMB 1,233,292,000[91]. Research and Development - Research and development expenses related to R&D activities amounted to RMB 209.7 million, an increase from RMB 154.4 million in 2020[26]. - The company aims to launch new environmentally friendly products, including biodegradable materials, to address sustainability concerns[21]. Financial Position - Cash and cash equivalents, along with time deposits and restricted bank deposits, totaled RMB 3,592.6 million, RMB 3,012.5 million, and RMB 87.9 million, respectively, as of December 31, 2021[29]. - The company's net cash position reached RMB 4,532.0 million as of December 31, 2021, down from RMB 5,000.6 million in 2020, indicating a stable financial condition with no net capital debt ratio reported[30]. - As of December 31, 2021, the company's financial assets measured at fair value and recognized in profit or loss amounted to RMB 6,153.4 million, an increase from RMB 4,604.9 million in 2020[30]. - Total assets increased to RMB 26,153,315 thousand in 2021, up from RMB 23,391,860 thousand in 2020, representing an increase of approximately 11.9%[147]. - Total liabilities increased to RMB 10,218,305 thousand in 2021 from RMB 8,605,824 thousand in 2020, marking a rise of 18.7%[151]. - The company’s total cash flow from financing activities showed a net cash inflow, indicating a positive financing position despite high dividend payouts[159]. Corporate Governance - The company has a strong governance structure with multiple independent non-executive directors overseeing key committees such as the audit and remuneration committees[41][42]. - The board includes members with diverse backgrounds in finance, accounting, and management, enhancing the company's strategic decision-making capabilities[41][42]. - The company emphasizes the importance of quality control and customer service, as evidenced by the roles of its directors in these areas[41]. - The independent non-executive directors contribute to the company's compliance and risk management efforts, ensuring adherence to regulatory standards[41][42]. - The company has a commitment to maintaining high standards of corporate governance through the appointment of qualified independent directors[41][42]. - The board's composition reflects a balance of experience and expertise, which is crucial for navigating the complexities of the financial landscape[41][42]. - The company adopted a new corporate governance code effective January 1, 2022, to ensure compliance with governance standards[51]. - The company has established a business ethics framework to promote integrity and ethical standards among employees and partners[48]. Environmental, Social, and Governance (ESG) - The company established a three-tier ESG governance structure in 2021 to enhance investment value and sustainable returns[46]. - The board is responsible for overseeing ESG-related matters and risk assessments[47]. - The ESG Executive Committee, led by Executive Director Zhang Jianfeng, reviews the company's ESG strategy and performance[47]. - The ESG Working Group supports the development of ESG goals and plans across various departments[47]. - The company emphasizes high-quality, internationally competitive products as part of its mission to equip China and the world[46]. - The company implemented a clean technology strategy, achieving energy savings of up to 60% compared to conventional hydraulic injection molding machines[48]. - The company is committed to exploring potential opportunities in the upstream and downstream industries to enhance clean technology investments and applications[48]. - The company aims to provide high cost-performance, environmentally friendly products while improving its ESG management and performance[48]. Risk Management - The audit committee, consisting of three independent non-executive directors, reviews the financial reporting procedures and internal controls, ensuring compliance with accounting principles[63]. - The board has reviewed the effectiveness of the risk management and internal control systems, deeming them effective and sufficient[68]. - The internal control department has been established since 2012 to assist the board in maintaining and reviewing risk management and internal control systems[71]. - The company has a credit risk policy ensuring sales are made to reputable customers, with credit periods ranging from 15 days to 36 months[96]. - The company faces foreign exchange risk due to sales in international markets, with less than 10% of procurement costs denominated in foreign currencies[94]. Shareholder Information - The company reported a total of 1,596,000,000 shares issued as of December 31, 2021[44]. - The market capitalization as of December 31, 2021, was HKD 34,553,400,000[44]. - Major shareholders include Tianfu Capital Limited with 27.18% and Premier Capital Management (PTC) Ltd. with 20.69% of total shares[115]. - The company’s major shareholders include Zhang Jingzhang and Zhang Jianming, each holding approximately 32.46% of the company’s shares[111]. Audit and Compliance - The financial statements were audited by PwC, which has been the auditor since the company was listed in December 2006[130]. - Key audit matters included the impairment provision for trade receivables and inventory write-down provisions[135]. - Management applied a simplified approach to measure expected credit losses for trade receivables[137]. - The company is responsible for preparing true and fair consolidated financial statements in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance[142]. - The audit committee is tasked with overseeing the financial reporting process of the group[142]. Capital Expenditures and Investments - Capital expenditures for the year 2021 totaled RMB 848.0 million, a decrease from RMB 925.8 million in 2020[31]. - The company reported a significant increase in investments in property, plant, and equipment, which reached RMB 4,366,451 thousand in 2021, compared to RMB 3,914,165 thousand in 2020, reflecting a growth of approximately 11.6%[147]. - The group purchased servo systems and components from Ningbo Haitian Drive Co., Ltd. for a total amount of RMB 1,022.6 million during the fiscal year ending December 31, 2021[123]. - The group entered into a framework agreement with Ningbo Haitian Intelligent Technology Co., Ltd. for the purchase of intelligent products and services, amounting to RMB 1.4 million as of December 31, 2021[123]. - The group purchased CNC lathes and machining centers from Haitian Precision Engineering for approximately RMB 43.0 million during the fiscal year ending December 31, 2021[124]. Employee and Director Information - The company provides comprehensive support for employees, including a healthy and safe working environment and quality employee accommodations[48]. - The company emphasizes the importance of training for newly appointed directors regarding their statutory and regulatory responsibilities as listed company directors[67]. - Total remuneration for senior management (excluding directors) for the year ended December 31, 2021, was RMB 6,103 thousand[109]. - The board of directors consists of five executive directors, two non-executive directors, and four independent non-executive directors[52]. Miscellaneous - Charitable donations made by the company during the year amounted to RMB 41.5 million[99]. - The company has no existing share option plans as of the report date[102]. - The company had no significant contingent liabilities as of December 31, 2021, consistent with the previous year[128]. - There were no major acquisitions or disposals of subsidiaries or associates during the year[128].

Financial Performance - The company's revenue for the six months ended June 30, 2021, reached RMB 8,225.8 million, an increase of 64.0% compared to RMB 5,015.7 million in the same period of 2020[3]. - Gross profit for the same period was RMB 2,659.2 million, up 57.7% from RMB 1,686.1 million, resulting in a gross margin of 32.3%, down from 33.6% in the previous year[4]. - Net profit attributable to shareholders increased to RMB 1,583.8 million, a 54.1% rise from RMB 1,028.0 million in the first half of 2020, with a net profit margin of 19.3%[4]. - Basic earnings per share for the period were RMB 0.99, reflecting a 54.1% increase from RMB 0.64 in the same period last year[4]. - The total comprehensive income for the six months ended June 30, 2021, was RMB 1,563,777, compared to RMB 1,018,331 for the same period in 2020, indicating a significant increase of approximately 53.6%[41]. Sales and Market Performance - Domestic sales reached RMB 5,720.3 million, a year-on-year increase of 67.7%, while overseas sales increased by 56.1% to RMB 2,505.5 million[10]. - The Mars series of energy-saving injection molding machines accounted for 70.4% of total sales, with sales increasing by 58.3% to RMB 5,787.7 million[11]. - Sales in mainland China amounted to RMB 5,720,252,000, up 67.8% from RMB 3,410,337,000, while sales in Hong Kong and overseas countries increased by 56.1% to RMB 2,505,543,000 from RMB 1,605,338,000[48]. Operational Efficiency - The company emphasized its strong operational flexibility and efficient working capital management capabilities[4]. - Sales and administrative expenses rose by 59.5% to RMB 1,041.4 million, primarily due to increased sales commissions and labor costs[17]. - The company plans to enhance its digital transformation and optimize management processes to improve efficiency and reduce costs in 2021[79]. Cash Flow and Investments - The company reported a net cash inflow from operating activities of RMB 1,478.8 million, compared to RMB 1,224.7 million in the first half of 2020[4]. - The net cash used in investing activities for the six months ended June 30, 2021, was RMB 628,151, compared to a net cash inflow of RMB 157,224 in the same period of 2020, indicating a significant shift in cash flow[42]. - Capital expenditures for the first half of 2021 amounted to RMB 456.4 million, significantly higher than RMB 177.8 million in the same period of 2020, indicating an increase of approximately 156%[22]. Challenges and Economic Environment - The company faced challenges due to rising raw material prices and supply shortages, impacting the manufacturing sector globally[9]. - The geopolitical landscape and ongoing pandemic developments present uncertainties for future economic growth, particularly in China[14]. - The overall economic environment in China has shown signs of stable development, supported by various policies aimed at stabilizing investment and exports[9]. Dividend and Shareholder Information - The board decided not to declare an interim dividend for the reporting period, with a review of the full-year results to consider dividend distribution later[4]. - The company paid dividends totaling RMB 1,871,243 during the six months ended June 30, 2021, compared to RMB 273,571 in the same period of 2020, reflecting a substantial increase in dividend payouts[42]. - The total issued shares as of June 30, 2021, were 1,596,000,000, with a market capitalization of HKD 41,576 million[74]. Employee and Compensation - The company employed approximately 6,800 people as of June 30, 2021, with a focus on competitive compensation plans and performance-based bonuses[25]. - Salary and bonuses increased to RMB 4,619,000 in H1 2021 from RMB 3,759,000 in H1 2020, representing a growth of 22.8%[131]. - Total employee-related expenses reached RMB 4,785,000 in H1 2021, up from RMB 3,895,000 in H1 2020, marking a rise of 22.9%[131].

Financial Performance - The company's sales revenue for the year ended December 31, 2020, reached RMB 11,800.1 million, an increase of 20.3% compared to RMB 9,809.7 million in 2019[30]. - The net profit attributable to shareholders for the year was RMB 2,388.0 million, representing a growth of 36.4% from RMB 1,750.5 million in the previous year[30]. - Domestic sales accounted for RMB 8,281.5 million (70.2% of total sales), up 30.2% from RMB 6,362.0 million (64.9% of total sales) in 2019[31]. - Export sales increased by 2.1% to RMB 3,518.6 million (29.8% of total sales) compared to RMB 3,447.7 million (35.1% of total sales) in 2019[31]. - The gross profit margin improved from 31.6% in 2019 to 34.2% in 2020, while the net profit margin rose from 17.9% to 20.2%[30]. - Cash generated from operating activities reached RMB 3,278.2 million, compared to RMB 2,729.8 million in 2019[37]. - Gross profit for 2020 was approximately RMB 4,040.3 million, up 30.4% from RMB 3,098.7 million in 2019, with a gross margin of 34.2% compared to 31.6% in 2019[39]. - Shareholders' profit increased by 36.4% to RMB 2,388.0 million in 2020 compared to 2019[43]. - Cash and cash equivalents totaled RMB 3,746.4 million as of December 31, 2020, up from RMB 1,538.4 million in 2019[43]. Dividends - The board declared a second interim dividend of HKD 0.65 per share and a special interim dividend of HKD 0.75 per share, totaling HKD 1.64 per share for 2020, compared to HKD 0.40 per share in 2019[30]. - The interim dividend for 2020 was HKD 0.24, with a second interim dividend of HKD 0.65 and a special interim dividend of HKD 0.75, totaling HKD 1.64[61]. - The total annual dividend will be HKD 1.64 per share[175]. Market Expansion and Strategy - The company expanded its overseas network, leading to notable sales increases in regions like Turkey and Vietnam despite challenges in markets such as India and Brazil[32]. - The company plans to enhance global market layout and improve market share in various industries as part of its 14th Five-Year Plan strategy[35]. - The company is actively involved in strategic management and governance through its board of directors, which includes family members and experienced professionals[52][53][54][55]. Environmental Responsibility - The company has a strong focus on environmental protection and reducing pollution during production processes[65]. - The company has established a zero-tolerance policy towards illegal activities such as bribery, extortion, fraud, and money laundering, with immediate termination for any employee involved[66]. - The company has successfully passed the ISO 14001:2015 environmental management system certification since 2017, maintaining compliance through annual audits[68]. - The company has established a dedicated environmental protection department to monitor compliance with environmental policies across factories[74]. - The company has implemented measures to reward energy-saving and pollution prevention initiatives while imposing penalties for non-compliance with environmental standards[96]. Employee Welfare and Development - The company emphasizes comprehensive care for employees, including safety and support for community activities[65]. - The management team has extensive experience in their respective fields, with key members having over 20 years of relevant experience[60]. - The company emphasizes employee training and development, ensuring a stable workforce and a supportive work environment[104]. - The company provides various employee welfare benefits, including participation in social security plans covering medical, work injury, and retirement insurance[122]. - Employee turnover rates increased from 5.3% in 2019 to 6.5% in 2020[111]. Corporate Governance - The board of directors consists of five executive directors, two non-executive directors, and four independent non-executive directors, ensuring a balanced skill set and experience[142]. - The audit committee has been formed to review and supervise the group's financial reporting procedures and internal controls, consisting of three independent non-executive directors[154]. - The company has adopted a board diversity policy to enhance management quality and performance by considering various factors such as age, gender, education, and professional experience[152]. - The company conducts regular internal control assessments to identify potential risks affecting its business and financial processes[158]. - The company has implemented strict controls and confidentiality measures for handling and disclosing inside information[159]. Social Responsibility - The company has invested over 202 million RMB in social welfare initiatives by 2020[132]. - The Zhejiang Haitian Charity Foundation was established in 2013 to support underprivileged groups[132]. - The company provided medical assistance to 20,000 individuals facing severe illnesses and financial difficulties, with total expenditures amounting to RMB 20 million[134]. - Community assistance efforts included a total expenditure of RMB 420,000 to support impoverished families during the Chinese New Year[135]. - The company has organized the Charity Day event for eight consecutive years, providing various community services and support[138]. Innovation and Technology - The company has established various innovation teams focused on green energy-saving technologies, intelligent equipment, and electric injection molding[103]. - The collaboration with Beijing University of Chemical Technology has led to advancements in intelligent injection molding equipment technology[106]. - The company has developed a third-generation energy-saving injection molding machine, significantly enhancing energy efficiency across hydraulic, mechanical, and electronic control domains[99]. - The intelligent water distribution system for cooling molds allows precise temperature control, leading to energy savings and reduced water consumption[100]. - The company is expanding its market share in all-electric and hybrid injection molding machines, which are more energy-efficient and environmentally friendly, achieving energy savings of 20% to 70% compared to traditional hydraulic machines[102][104].

Financial Performance - For the six months ended June 30, 2020, the company's revenue reached RMB 5,015.7 million, a slight increase of 0.1% compared to RMB 5,008.9 million in the same period of 2019[3]. - Gross profit increased to RMB 1,686.1 million, representing a 6.4% rise from RMB 1,584.6 million in the previous year, with a gross margin of 33.6%, up from 31.6%[4]. - The company's net profit attributable to shareholders rose to RMB 1,028.0 million, a 13.0% increase from RMB 909.4 million in the same period last year, with a net profit margin of 20.5%, up 2.4 percentage points[4]. - Basic earnings per share for the period were RMB 0.64, an increase of 13.0% compared to RMB 0.57 in the previous year[4]. - The board declared an interim dividend of HKD 0.24 per share, up 14.3% from HKD 0.21 in the same period last year[4]. Cash Flow and Financial Position - Cash generated from operating activities for the six months ended June 30, 2020, was RMB 1,224.7 million, compared to RMB 1,365.6 million in the same period of 2019[4]. - The company's net cash position, including financial products, reached RMB 8,314.0 million as of June 30, 2020, compared to RMB 7,417.6 million at the end of 2019[4]. - As of June 30, 2020, the total cash and cash equivalents, along with time deposits and restricted cash, amounted to RMB 2,868.0 million, up from RMB 1,538.4 million at the end of 2019[18]. - The short-term bank borrowings as of June 30, 2020, were RMB 1,238.8 million, compared to RMB 1,021.9 million at the end of 2019[18]. - The net cash generated from investing activities was RMB 157,224 thousand, a significant improvement from a net cash used of RMB 701,483 thousand in 2019[43]. Sales and Market Performance - Domestic sales reached RMB 3,320.6 million, accounting for 66.2% of total sales, remaining stable compared to RMB 3,320.2 million in the same period last year[8]. - Export sales slightly increased by 0.1% to RMB 1,548.4 million, maintaining a 30.9% share of total sales[8]. - The Mars series (energy-saving injection molding machines) sales grew by 15.3% to RMB 3,655.7 million, driven by increased demand for medical and consumer packaging products[10]. - The Changfei electric series sales decreased by 26.7% to RMB 566.5 million, impacted by weakened demand in the automotive sector[10]. Operational Efficiency and Cost Management - Selling and administrative expenses decreased by 14.7% to RMB 652.9 million, primarily due to reduced sales commissions and travel expenses[14]. - The gross profit margin improved by 2.0 percentage points to 33.6% due to enhanced operational efficiency and lower raw material prices[75]. - The company maintained strong operational flexibility and capital management capabilities despite the ongoing impact of the COVID-19 pandemic[7]. Future Outlook and Strategic Initiatives - The outlook for the second half of 2020 remains optimistic, supported by domestic demand and government policies aimed at economic recovery[10]. - The company plans to continue digital transformation and management innovation, focusing on big data management and smart manufacturing[11]. - The company aims to enhance overseas market expansion based on a strategy of "Internet+" and innovative technologies[11]. Taxation and Earnings - The income tax expense increased by 14.7% to RMB 256.4 million in the first half of 2020, compared to RMB 223.5 million in the same period of 2019, with an effective tax rate of 20.0%[17]. - The total comprehensive income for the six months ended June 30, 2020, was RMB 1,017,602,000, an increase of 11.6% compared to RMB 912,119,000 in 2019[106]. Employee and Corporate Governance - The company employed approximately 6,300 people as of June 30, 2020, with a focus on competitive compensation plans[22]. - The company maintained compliance with the corporate governance code as per the listing rules during the reporting period[33].

Financial Performance - For the year ended December 31, 2019, the company's total sales revenue was RMB 9,809.7 million, a decrease of 9.6% compared to RMB 10,851.2 million in 2018[13] - The company's net profit attributable to shareholders was RMB 1,750.5 million, down from RMB 1,916.9 million in 2018, representing a decrease of 8.7%[13] - The adjusted net profit attributable to shareholders, excluding non-cash accounting gains from convertible bonds, was RMB 1,753.9 million, a decrease of 3.3% from RMB 1,813.0 million in 2018[13] - The gross profit margin for 2019 was maintained at 31.6%, consistent with the previous year, despite a challenging economic environment[13] - The company's net profit margin for 2019 was 17.9%, an increase of 1.2 percentage points compared to the previous year[13] - The company's gross profit for 2019 was RMB 3,098.7 million, which is a 9.6% decline from RMB 3,426.3 million in 2018[20] - The export sales reached a record high of RMB 3,447.7 million in 2019, representing a growth of 2.9% from RMB 3,351.3 million in 2018[21] - The Mars series sales decreased by 7.1% from RMB 6,872.8 million in 2018 to RMB 6,387.5 million in 2019, but it remains the most successful product in the industry[16] - The Jupiter series sales fell by 15.8% from RMB 1,500.4 million in 2018 to RMB 1,263.0 million in 2019[16] Dividend and Shareholder Information - The board declared a second interim dividend of HKD 0.19 per share, maintaining the same level as in 2018, with a total dividend of HKD 0.40 per share for 2019, down from HKD 0.44 in 2018[13] - The company declared a total dividend of RMB 0.40 per share for 2019, down from RMB 0.44 per share in 2018[21] - The total interim dividend for 2019 was HKD 0.40, consisting of HKD 0.21 for the first interim dividend and HKD 0.19 for the second interim dividend[42] - As of December 31, 2019, the company's distributable reserves amounted to RMB 2,498.9 million, which includes share premium, paid-in surplus, and retained earnings[146] - The total number of shares issued by the company is 1,596,000,000, with major shareholders holding significant stakes: Tianfu Capital Limited at 59.19%, Schroders Plc at 6.00%, and other shareholders at 34.81%[150] Market and Sales Strategy - Domestic sales of complete machines decreased by 15.6% to RMB 6,173.2 million, while export sales of complete machines increased by 2.2% to a record high of RMB 3,304.4 million[15] - The company plans to expand its export ratio as part of its long-term strategy, despite challenges in international trade[15] - The overall market demand was negatively impacted by trade tensions, leading to a decline in business confidence and economic activity globally[12] - The company aims to leverage stable raw material prices and strategic measures to enhance its operational efficiency moving forward[13] - The company aims to enhance new product development and expand overseas markets based on five centers of manufacturing and sales[19] Environmental and Social Responsibility - The company aims for zero environmental pollution incidents and 100% compliance in hazardous waste disposal, with a 3% reduction in hazardous waste volume compared to the previous year[52] - The company has implemented a digital environmental management system to enhance process control and data analysis for better decision-making[52] - The company has established a detailed record system for hazardous waste treatment to ensure compliance with legal regulations[73] - The company has invested over 200 million RMB in social welfare and charitable activities since its establishment in 1998[96] - The company provided 496,000 RMB in scholarships to students from five universities, supporting those from economically disadvantaged backgrounds[97] - The company organized various community service projects, including free medical services and psychological counseling, benefiting employees and local residents[99][104] Corporate Governance - The board of directors consists of five executive directors, two non-executive directors, and four independent non-executive directors, ensuring strong corporate governance[108] - The company has been compliant with the corporate governance code as of December 31, 2019, reflecting its commitment to good governance practices[107] - The board believes that compliance with laws and regulations is crucial for business operations, especially given the expansion into overseas markets[136] - The company has engaged external legal advisors to assist with compliance matters as it expands its operations internationally[136] - The company has established a standard code of conduct for directors regarding securities trading, which all directors confirmed to have adhered to during the reporting period[113] Employee Development and Safety - The company emphasizes employee safety, having adopted the OHSAS18001 occupational health and safety management system and initiated internal audits for ISO45001[85] - The company prioritizes employee training and development, offering various professional skills training and promoting a people-oriented work environment[78] - The company has implemented policies to encourage employees to pursue further education, providing a subsidy of 50% of tuition fees for those who complete their studies[87] - In 2019, the company recorded 28 industrial accidents resulting in 1,192 lost workdays, a decrease from 52 accidents and 1,043 lost workdays in 2018[86] - The company has established various innovation teams focused on green energy-saving technologies and smart equipment, contributing to significant advancements in the injection molding industry[76] Financial Position and Assets - Total assets as of December 31, 2019, amounted to RMB 19,303,344 thousand, an increase from RMB 18,792,545 thousand in 2018, representing a growth of approximately 2.7%[198] - Non-current assets reached RMB 6,605,109 thousand, up from RMB 4,392,657 thousand in the previous year, indicating a significant increase of about 50.3%[198] - Current assets totaled RMB 12,698,235 thousand, a decrease from RMB 14,399,888 thousand in 2018, reflecting a decline of approximately 11.8%[198] - The company's retained earnings rose to RMB 10,083,130 thousand, compared to RMB 8,901,433 thousand in 2018, marking an increase of around 13.2%[198] - Total liabilities decreased from RMB 6,865,433 thousand in 2018 to RMB 6,177,541 thousand in 2019, a reduction of approximately 10%[199] Risk Management - The company maintains a prudent liquidity risk management strategy, ensuring sufficient cash and cash equivalents are available through committed credit facilities[143] - The company faces foreign exchange risks due to international sales, with less than 10% of procurement costs denominated in foreign currencies[139] - The company has implemented clear risk management processes and guidelines, with regular evaluations conducted by all departments[124] - The board believes that the risk management and internal control systems are effective and sufficient[124] Audit and Compliance - The independent auditor, PwC, has issued an unqualified opinion on the financial statements for the year ended December 31, 2019[184] - The audit committee reviewed the group's financial performance for the year ending December 31, 2019, and the interim results for the six months ending June 30, 2019[119] - Key audit matters identified include impairment provisions for trade receivables and inventory write-downs, which are significant due to management's judgments and estimates involved[187] - Management assesses the recoverability of trade receivables and recognizes expected credit loss provisions based on aging analysis and historical payment patterns[190]

Financial Performance - For the six months ended June 30, 2019, the company reported revenue of RMB 5,008.9 million, a decrease of 14.8% compared to RMB 5,877.4 million in the same period of 2018[4]. - Gross profit for the same period was RMB 1,584.6 million, down 13.1% from RMB 1,824.3 million year-on-year[4]. - The company's net profit attributable to shareholders decreased to RMB 909.4 million, a decline of 22.2% from RMB 1,169.4 million in the previous year[5]. - Basic earnings per share for the period were RMB 0.57, representing a decrease of 22.2% compared to RMB 0.73 in the same period last year[5]. - The company declared an interim dividend of HKD 0.21 per share, down from HKD 0.25, a decrease of 16.0%[5]. - The company's sales for the first half of 2019 reached RMB 5,008.9 million, a decrease of 14.8% compared to the same period in 2018[8]. - Domestic sales fell by 20.5% to RMB 3,320.2 million, while export sales decreased by 2.1% to RMB 1,546.5 million[9]. - The Mars series sales decreased by 18.9% to RMB 3,171.5 million, while the Jupiter series sales dropped by 20.5% to RMB 663.7 million[10]. - The total comprehensive income for the six months ended June 30, 2019, was RMB 912,119, compared to RMB 1,157,269 for the same period in 2018, reflecting a decrease of approximately 21%[42]. - The profit attributable to shareholders, excluding the fair value changes of convertible bonds, was RMB 912.9 million, down 15.2% from RMB 1,076.3 million[80]. Cash Flow and Financial Position - The cash generated from operating activities for the six months ended June 30, 2019, was RMB 1,365.6 million, compared to RMB 882.1 million in the same period of 2018[5]. - The company's net cash position, including financial products, increased to RMB 7,389.0 million as of June 30, 2019, up from RMB 6,652.0 million at the end of 2018[5]. - As of June 30, 2019, the company had cash and cash equivalents totaling RMB 3,321.0 million, down from RMB 3,769.6 million at the end of 2018[17]. - The company reported a net loss from financing activities of RMB 1,112,744 for the six months ended June 30, 2019, compared to a net loss of RMB 931,283 for the same period in 2018[119]. - The total accounts payable increased to RMB 2,788,597,000, up from RMB 2,669,190,000, representing a rise of 4.5% year-over-year[66]. Operational Highlights - The sales of the electric series injection molding machines increased by 13.6% year-on-year, reaching RMB 773.1 million, with a sales proportion of 22.5% for small tonnage machines[5]. - Sales of the Jupiter series injection molding machines decreased by 20.5% to RMB 663.7 million, with a sales proportion of 44.1% for large tonnage machines[5]. - The company plans to enhance its management software platform and promote digital management to improve efficiency[11]. - The company aims to increase R&D efforts for new products and expand into overseas markets based on the "Five Centers" strategy[11]. - The company emphasizes the importance of meeting customer personalized needs while promoting standardized production of components[11]. Shareholder Information - The board declared an interim dividend of HKD 0.21 per share, down from HKD 0.25 per share in the first half of 2018[8]. - As of June 30, 2019, Tianfu Capital Limited holds 944,737,672 shares, representing 59.19% of the company's total shares[32]. - The company has suspended share transfer registration from September 10 to September 12, 2019, to qualify for the interim dividend[23]. - The company’s major shareholders include Premier Capital Management (PTC) Ltd. and UBS Trustees (B.V.I.) Limited, both holding 59.19% of the shares[33]. - The company has a significant concentration of ownership, with major shareholders controlling over 59% of the shares[32]. Corporate Governance - The company has complied with all applicable corporate governance code provisions during the six months ending June 30, 2019[34]. - The company emphasizes maintaining high levels of corporate governance practices to enhance shareholder value[34]. - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting procedures and internal controls for the six months ended June 30, 2019[111]. - The company has adopted the standard code for securities transactions by directors, confirming compliance throughout the reporting period[111]. Market Outlook - The company maintains a cautious outlook for the second half of 2019 due to global economic uncertainties and trade tensions[11]. - The company’s management believes that the related party transactions were conducted in the ordinary course of business according to relevant agreements[72].

Financial Performance - For the year ended December 31, 2018, the company's revenue reached RMB 10,851.2 million, an increase of 6.5% compared to RMB 10,186.1 million in 2017[11]. - The net profit attributable to shareholders was RMB 1,916.9 million, down from RMB 2,005.4 million in 2017, representing a decrease of 4.4%[11]. - Adjusted net profit, excluding non-cash accounting gains from convertible bonds, was RMB 1,813.0 million, a decrease of 13.7% from RMB 2,101.3 million in 2017[11]. - The gross profit for 2018 was RMB 3,426.3 million, a decrease of 4.7% from RMB 3,596.8 million in 2017, with a gross margin of 31.6%[21]. - The net profit margin, excluding non-cash accounting gains, was 16.7%, down 3.9 percentage points from the previous year[11]. - The company reported a total of RMB 308.1 million in component sales, a 27.3% increase from RMB 242.1 million in 2017[12]. - The sales of the Mars series (energy-saving injection molding machines) decreased by 2.8% from RMB 7,072.7 million in 2017 to RMB 6,872.8 million in 2018, reflecting sensitivity to economic changes[14]. - The sales of the Changfei electric series injection molding machines increased by 49.8% to RMB 1,514.1 million in 2018, compared to RMB 1,010.8 million in 2017[14]. - The Jupiter series (two-plate injection molding machines) saw a sales increase of 13.4%, reaching RMB 1,500.4 million in 2018 from RMB 1,323.1 million in 2017[14]. - The company declared a total annual dividend of RMB 0.44 per share, a decrease of 15.4% from RMB 0.52 per share in 2017[19]. - The company reported a total comprehensive income for the year of RMB 2,061,593 thousand, slightly down from RMB 2,066,422 thousand in 2017[186]. Sales and Market Expansion - Domestic sales increased by 4.6% to RMB 7,311.2 million, while export sales rose by 9.4% to RMB 3,231.9 million[13]. - The company has increased its investment in overseas markets, particularly in Germany and Turkey, leading to significant sales growth in these regions[13]. - Approximately 30.9% of products were exported to international markets, with sales denominated in foreign currencies[29]. - The company has established a strong sales network in China and exports to over 100 countries globally, emphasizing long-term relationships with customers and suppliers[153]. Cost and Expenses - Sales and administrative expenses increased by 13.6% from RMB 1,325.2 million in 2017 to RMB 1,505.8 million in 2018, driven by labor and depreciation costs due to capacity expansion[22]. - The gross profit margin decreased by 3.7 percentage points to 31.6% due to rising raw material prices[11]. - The company experienced a foreign currency translation gain of RMB 145,361 thousand in 2018, compared to a loss of RMB 2,102 thousand in 2017[186]. Research and Development - The company is committed to R&D innovation, launching a new generation of cost-effective injection molding machines targeting the mid-to-high-end market in early 2019[16]. - The company has a strong focus on R&D in injection molding machinery, with key personnel having extensive industry experience[36]. - The company has implemented a comprehensive quality management system focusing on achieving "optimal cost-performance" products through quality control across the entire product lifecycle[78]. Environmental and Social Responsibility - The company emphasizes its commitment to environmental protection and has established policies for pollution prevention and waste management in its factories[45]. - The company has a dedicated environmental protection department to monitor compliance with environmental policies across its factories[45]. - The company has invested over 177 million RMB in social responsibility initiatives, including community support and educational assistance for underprivileged students[80]. - The company has organized a charity day for six consecutive years, offering various community services such as free eye exams and bicycle repairs[85]. Corporate Governance - The board consists of 5 executive directors, 5 non-executive directors, and 5 independent non-executive directors, ensuring a balanced governance structure[94]. - The company adheres to the corporate governance code and has complied with all applicable provisions as of December 31, 2018[93]. - The board's composition is regularly reviewed to maintain high standards of governance and ensure effective oversight of the company's operations[96]. - The company has established an internal control department since 2012 to assist the board in maintaining and reviewing risk management and internal control systems[114]. Employee Engagement and Safety - The total number of employees at the company is approximately 6,390, with 5,657 (88.5%) being male and 733 (11.5%) female[65]. - In 2018, the company recorded 52 industrial accidents resulting in 1,043 lost workdays, a decrease from 80 accidents and 4,034 lost workdays in 2017[72]. - The company has implemented the OHSAS18001 occupational health and safety management system to enhance workplace safety[71]. - Various recreational activities are organized for employees, including sports competitions and cultural events, to promote well-being and communication[75]. Financial Position - Total assets increased to RMB 18,792,545 thousand in 2018 from RMB 18,293,907 thousand in 2017, representing a growth of 2.73%[179]. - Total equity increased to RMB 11,927,112 thousand in 2018, compared to RMB 10,561,353 thousand in 2017, reflecting a growth of 12.92%[180]. - The company maintained a stable cash and cash equivalents balance of RMB 3,769,637 thousand in 2018, compared to RMB 3,029,252 thousand in 2017, an increase of 24.48%[179]. - The company’s total bank borrowings in 2018 amounted to RMB 1,060,000 thousand, down from RMB 1,489,696 thousand in 2017, indicating a reduction in reliance on debt financing[189]. Audit and Compliance - The audit committee is responsible for overseeing the financial reporting process of the company[174]. - The independent auditor has not identified any significant misstatements in the other information provided by the company[174]. - The company has received sufficient and appropriate audit evidence to support management's judgments and estimates regarding impairment provisions[171][172].