Financial Performance - For the six months ended June 30, 2023, the company's revenue reached RMB 6,380.2 million, a decrease of 2.0% compared to RMB 6,509.6 million in the same period of 2022[4] - Gross profit increased to RMB 2,042.5 million, with a gross margin of 32.0%, up from 30.7% in the first half of 2022[5] - The company's profit attributable to shareholders rose to RMB 1,231.3 million, reflecting a 5.0% increase from RMB 1,172.3 million year-on-year[5] - Basic earnings per share for the period were RMB 0.77, an increase of 5.0% compared to RMB 0.73 in the previous year[5] - The net profit margin for the period was 19.3%, an increase of 1.3 percentage points compared to the same period in 2022[9] - Operating profit for the period was RMB 1,362,494 thousand, slightly up from RMB 1,354,593 thousand in the previous year[30] - The company reported a total comprehensive income of RMB 1,327,199 thousand for the period, compared to RMB 1,206,157 thousand in the previous year, marking a growth of 10.0%[31] Sales Performance - Domestic sales amounted to RMB 3,876.3 million, down 8.0% year-on-year, while overseas sales increased by 9.0% to RMB 2,503.9 million[10] - The Mars series sales declined by 3.6% year-on-year to RMB 3,859.7 million, while the Jupiter series saw an 18.3% increase to RMB 1,368.7 million[12] - Sales in mainland China amounted to RMB 3,876,296,000, while sales in Hong Kong and overseas countries were RMB 2,503,931,000, compared to RMB 4,213,255,000 and RMB 2,296,354,000 respectively in the prior year[43] Cash Flow and Liquidity - The net cash generated from operating activities reached RMB 1,280.4 million, significantly higher than RMB 811.0 million in the first half of 2022[5] - As of June 30, 2023, the company's cash and cash equivalents amounted to RMB 5,437.1 million, an increase from RMB 3,590.8 million as of December 31, 2022, representing a growth of approximately 51.3%[17] - The net cash position, including financial products, was RMB 10,016.5 million as of June 30, 2023, compared to RMB 9,946.8 million at the end of 2022[5] - The net cash flow from operating activities for the six months ended June 30, 2023, was RMB 1,280,408, an increase of 57.7% compared to RMB 810,961 in the same period of 2022[36] - Cash and cash equivalents as of June 30, 2023, were RMB 5,437,087 thousand, compared to RMB 3,590,846 thousand at the end of 2022, indicating a significant increase in liquidity[33] Expenses and Costs - Sales and administrative expenses rose by 8.6% to RMB 1,003.2 million, primarily due to increased provisions for receivables, R&D expenses, and overseas management costs[14] - Operating profit for the six months ended June 30, 2023, was impacted by depreciation and amortization of RMB 208,556,000, an increase from RMB 190,133,000 in 2022[45] - Capital expenditures for the first half of 2023 totaled RMB 633.2 million, slightly down from RMB 636.3 million in the first half of 2022, a decrease of 0.2%[17] Investments and Future Plans - The company plans to accelerate its global expansion and has initiated the construction of new factories in Serbia, India, and Mexico to enhance its supply chain[13] - The fifth-generation injection molding machine was trial-launched in select markets, receiving positive customer feedback, with plans for broader rollout in the second half of 2023[13] - The company has no specific future plans for significant investments or capital assets as of June 30, 2023[26] Shareholder Information - The board decided not to declare an interim dividend for the period, pending a review of the full-year results[9] - The company paid dividends of RMB 768,277 for the second interim period of 2022, down from RMB 1,233,292 in the previous year[36] - The company’s retained earnings as of June 30, 2023, were RMB 13,715,760, up from RMB 12,220,936 at the end of the previous period, reflecting a growth of 12.2%[35] Employee and Compensation - The company employed approximately 7,100 people as of June 30, 2023, with a focus on competitive compensation plans and performance-based bonuses[18] - For the six months ended June 30, 2023, total compensation including basic salary, housing allowance, stock options, and other benefits amounted to RMB 7,159,000, an increase of 22.1% from RMB 5,864,000 in 2022[62] - Pension plan contributions for the same period were RMB 67,000, up from RMB 54,000, reflecting a 24.1% increase[62] - Discretionary bonuses increased to RMB 908,000, compared to RMB 849,000 in the previous year, marking a growth of 6.9%[62]

香港交易及結算所有限公司以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，並明確表示概不就因本公佈 全部或任何部分內容而產生或因依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 三 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 佈 摘要 截至六月三十日止六個月 二零二三年 二零二二年 變動 人民幣 人民幣 百萬元 百萬元 % 收入 6,380.2 6,509.6 -2.0 毛利 2,042.5 2,000.2 +2.1 經營利潤 1,362.5 1,354.6 +0.6 本公司股東應佔利潤 1,231.3 1,172.3 +5.0 每股基本盈利 （以每股人民幣列示） 0.77 0.73 +5.0 ...

Financial Performance - For the fiscal year ending December 31, 2022, the company's sales revenue was RMB 12,308.2 million, a decrease of 23.2% compared to RMB 16,018.3 million in 2021[12]. - The net profit attributable to shareholders for 2022 was RMB 2,264.7 million, down 25.8% from RMB 3,052.0 million in the previous year, with a net profit margin of 18.4%[12]. - The gross profit for 2022 was RMB 3,917.5 million, down 23.9% year-on-year, with a gross margin of 31.8% compared to 32.2% in 2021[25]. - The company reported a total comprehensive income of RMB 2,310,431 thousand for the year, compared to RMB 3,030,631 thousand in 2021, indicating a decline of 23.8%[176]. - The cash flow from operating activities for the year was RMB 1,780,608 thousand, down from RMB 3,124,082 thousand in the previous year, reflecting a decline of approximately 43.1%[181]. Sales Breakdown - Domestic sales amounted to RMB 7,916.2 million, representing 64.3% of total sales, a decline of 28.6% from RMB 11,088.2 million in 2021[13]. - Overseas sales reached RMB 4,392.0 million, accounting for 35.7% of total sales, down 10.9% from RMB 4,930.1 million in the previous year[13]. - The Mars series (energy-saving injection molding machines) generated RMB 7,288.3 million in sales, a 33.4% decrease from RMB 10,944.0 million in 2021, representing 59.2% of total sales[15]. - The Jupiter series (two-plate injection molding machines) saw a sales increase of 20.9% to RMB 2,438.8 million, up from RMB 2,017.3 million in 2021, making up 19.8% of total sales[15]. Dividends - The board declared a second interim dividend of HKD 0.55 per share for 2022, compared to a total dividend of HKD 0.95 per share in 2021[12]. - The total interim dividend declared was HKD 0.55 per share[53]. - The company paid dividends amounting to RMB 1,233,292 thousand to shareholders during the year, compared to RMB 1,875,444 thousand in the previous year, a reduction of approximately 34.4%[181]. Strategic Initiatives - The company plans to focus on expanding its market presence and enhancing product development in response to the challenging economic environment[12]. - The company plans to accelerate overseas expansion and has acquired land in Serbia and Malaysia for future manufacturing bases[18]. - The company aims to enhance its management team and implement reforms in marketing, supply chain, and technology to adapt to new challenges[17]. ESG and Sustainability - The company received an upgraded ESG rating to BB from MSCI in January 2023, reflecting its commitment to sustainable development[20]. - In 2022, the total carbon emissions decreased by 28.1%, and energy usage decreased by 15.0%[58]. - The company established a three-tier ESG governance structure to oversee ESG strategy execution[57]. - The company emphasizes compliance with environmental laws and regulations, with a dedicated team monitoring compliance and conducting energy efficiency analyses[107]. Management and Governance - The board of directors consists of both executive and non-executive members, ensuring a balance of skills and experience crucial for the group's business development[65]. - The company has adopted a board diversity policy, aiming for gender equality within approximately ten years, currently comprising ten male members and one female member[77]. - The company has established appropriate insurance arrangements for legal actions against directors and senior management, with regular reviews to ensure adequate coverage[67]. - The company has implemented strict controls and confidentiality measures for handling and disclosing insider information[88]. Financial Position - As of December 31, 2022, the total cash and cash equivalents, time deposits, and restricted bank deposits amounted to RMB 3,590.8 million, RMB 3,100.5 million, and RMB 35.2 million respectively[31]. - The group reported a total of 1,596,000,000 shares issued as of December 31, 2022[53]. - The market capitalization as of December 31, 2022, was HKD 33,356,400,000[53]. - Total assets as of December 31, 2022, amounted to RMB 25,791,201 thousand, a decrease from RMB 26,153,315 thousand in 2021[173]. Employee Information - The group employed a total of 7,159 employees as of December 31, 2022, with a focus on competitive compensation plans[37]. - As of December 31, 2022, the company had 7,159 employees, with a gender ratio of approximately 1:8.23 (776 females and 6,383 males)[78]. - Employee age distribution showed that 32.94% were under 30 years old, 33.40% were between 30 and 40 years old, and 33.66% were over 40 years old, reflecting a diverse range of experience[78]. Audit and Compliance - The financial statements were audited by PwC, which has been the auditor since the company was listed in December 2006[155]. - The independent auditor's report indicates that the company is responsible for preparing true and fair consolidated financial statements in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance[168]. - The auditor's responsibility includes obtaining reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[169]. - The audit report was issued on March 20, 2023, by the auditing partner Kwan, Wai Cheung[171].

[Summary & Performance Overview](index=1&type=section&id=Summary%20%26%20Performance%20Overview) [Annual Performance Summary](index=1&type=section&id=Annual%20Performance%20Summary) Haitian International Holdings Limited announced a significant decline in revenue, gross profit, operating profit, and profit attributable to shareholders for the year ended December 31, 2022 Annual Results Summary | Metric | 2022 (RMB Million) | 2021 (RMB Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 12,308.2 | 16,018.3 | -23.2 | | Gross Profit | 3,917.5 | 5,151.1 | -23.9 | | Operating Profit | 2,632.4 | 3,596.7 | -26.8 | | Profit Attributable to Company Shareholders | 2,264.7 | 3,052.0 | -25.8 | | Basic Earnings Per Share (RMB) | 1.42 | 1.91 | -25.8 | | Full Year Dividend (HKD) | 0.55 | 0.95 | -42.1 | [Key Financial Highlights](index=2&type=section&id=Key%20Financial%20Highlights) In 2022, weakened demand in downstream industries led to a 23.2% revenue decrease, while the gross profit margin slightly fell to 31.8% and net profit declined by 25.8% - Revenue in 2022 reached **RMB 12,308.2 million**, a decrease of **23.2%** from 2021, mainly due to multiple unexpected domestic and international factors weakening downstream demand and tightening capital expenditures[3](index=3&type=chunk) - The annual gross profit margin was **31.8%** (2021: 32.2%), as lower raw material prices in the second half of the year partially offset the impact of insufficient capacity utilization[3](index=3&type=chunk) - Profit attributable to the company's shareholders was **RMB 2,264.7 million**, a **25.8%** decrease from 2021, with earnings per share at **RMB 1.42**, also down **25.8%** year-on-year[3](index=3&type=chunk) - The Board of Directors declared a second interim dividend of **HKD 0.55** per share, bringing the total dividend for 2022 to **HKD 0.55** per share (2021: HKD 0.95)[3](index=3&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss](index=3&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) In 2022, revenue decreased by 23.2% to RMB 12,308,186 thousand, leading to a 23.9% drop in gross profit and significant declines in both operating and annual profit Consolidated Statement of Profit or Loss | Metric | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Revenue | 12,308,186 | 16,018,272 | | Cost of Sales | (8,390,657) | (10,867,200) | | Gross Profit | 3,917,529 | 5,151,072 | | Operating Profit | 2,632,358 | 3,596,659 | | Profit for the Year | 2,265,017 | 3,050,099 | | Profit Attributable to Company Shareholders | 2,264,668 | 3,051,968 | [Consolidated Statement of Comprehensive Income](index=4&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income) For 2022, profit for the year was RMB 2,265,017 thousand, and a positive currency translation difference resulted in a total comprehensive income of RMB 2,310,431 thousand Consolidated Statement of Comprehensive Income | Metric | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Profit for the Year | 2,265,017 | 3,050,099 | | Currency Translation Differences | 45,414 | (19,468) | | Total Comprehensive Income for the Year | 2,310,431 | 3,030,631 | | Total Comprehensive Income Attributable to Company Shareholders | 2,310,032 | 3,032,587 | [Consolidated Balance Sheet](index=5&type=section&id=Consolidated%20Balance%20Sheet) As of December 31, 2022, total assets slightly decreased to RMB 25,791,201 thousand, with an increase in non-current assets offset by a reduction in current assets and total liabilities Consolidated Balance Sheet Summary | Metric | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-current Assets | 9,098,603 | 8,402,276 | | Total Current Assets | 16,692,598 | 17,751,039 | | Total Assets | 25,791,201 | 26,153,315 | | **Equity and Liabilities** | | | | Total Equity | 17,040,000 | 15,935,010 | | Total Non-current Liabilities | 516,408 | 875,859 | | Total Current Liabilities | 8,234,793 | 9,342,446 | | Total Liabilities | 8,751,201 | 10,218,305 | | Total Equity and Liabilities | 25,791,201 | 26,153,315 | - Property, plant and equipment increased from **RMB 4,366,451 thousand** in 2021 to **RMB 5,461,755 thousand** in 2022[7](index=7&type=chunk) - Financial assets at fair value through profit or loss decreased from **RMB 5,893,364 thousand** in 2021 to **RMB 3,664,622 thousand** in 2022[7](index=7&type=chunk) - Bank borrowings decreased from **RMB 2,160,970 thousand** in 2021 to **RMB 1,435,255 thousand** in 2022 (non-current 112,389 + current 1,322,866)[8](index=8&type=chunk) [Consolidated Statement of Changes in Equity](index=7&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) Total equity attributable to shareholders increased from RMB 15,934,377 thousand in 2021 to RMB 17,011,117 thousand in 2022, driven by annual profit and positive currency translation differences Changes in Equity Attributable to Company Shareholders | Metric | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Balance at Beginning of Year | 15,934,377 | 14,777,234 | | Profit for the Year | 2,264,668 | 3,051,968 | | Other Comprehensive Income | 45,364 | (19,381) | | Dividends Paid | (1,233,292) | (1,875,444) | | Balance at End of Year | 17,011,117 | 15,934,377 | [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In 2022, net cash from operating activities decreased significantly, while net cash from investing activities turned positive, resulting in a much smaller net decrease in cash and cash equivalents Cash Flow Summary | Metric | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 1,780,608 | 3,124,082 | | Net Cash from/(used in) Investing Activities | 171,307 | (2,265,777) | | Net Cash used in Financing Activities | (1,953,691) | (1,012,113) | | Net Decrease in Cash and Cash Equivalents | (1,776) | (153,808) | | Cash and Cash Equivalents at End of Year | 3,590,846 | 3,592,622 | [Notes to the Financial Statements](index=9&type=section&id=Notes%20to%20the%20Financial%20Statements) [General Information and Basis of Preparation](index=9&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The company, primarily engaged in manufacturing and distributing injection molding machines, prepares its financial statements in RMB under HKFRS and the Hong Kong Companies Ordinance - The Group is principally engaged in the manufacturing and distribution of injection molding machines[11](index=11&type=chunk) - The financial statements are prepared in accordance with all applicable HKFRS and the disclosure requirements of the Hong Kong Companies Ordinance Cap 622, mainly on a historical cost basis with certain financial assets measured at fair value[12](index=12&type=chunk) [Changes in Accounting Policies](index=9&type=section&id=Changes%20in%20Accounting%20Policies) The adoption of new and amended standards during the period did not materially impact the Group's accounting policies or financial statements, and upcoming standards are not expected to have a significant effect - The adoption of new and amended standards (such as amendments to HKAS 16, 37, and HKFRS 3) had no impact on amounts recognized in prior periods and is not expected to have a significant impact on the current or future periods[13](index=13&type=chunk)[14](index=14&type=chunk) - Certain new accounting standards and interpretations that have been issued but are not yet effective have not been early adopted and are not expected to have a material impact on the Group's transactions in the current or future reporting periods[15](index=15&type=chunk)[16](index=16&type=chunk) [Revenue and Segment Information](index=10&type=section&id=Revenue%20and%20Segment%20Information) All revenue is derived from the sale of injection molding machines, with 64.3% from Mainland China, and no separate segment information is presented as management reviews the business as a single segment Revenue from Sale of Injection Molding Machines and Related Products | Revenue Source | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Sale of injection molding machines and related products | 12,308,186 | 16,018,272 | - The Group has not presented segment information as the vast majority of its sales and operating profits are derived from the sale of injection molding machines, and management reviews business performance by business type rather than geographical location[17](index=17&type=chunk) Geographical Sales Information | Sales Region | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Mainland China | 7,916,193 | 11,088,162 | | Hong Kong and overseas countries | 4,391,993 | 4,930,110 | | Total | 12,308,186 | 16,018,272 | [Other Income and Operating Profit](index=11&type=section&id=Other%20Income%20and%20Operating%20Profit) In 2022, other net income increased to RMB 185,030 thousand, mainly influenced by fair value changes in financial assets and foreign exchange gains Other Net Income | Other Income Item | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Net fair value and disposal gains on financial assets | 188,730 | 228,119 | | Net fair value changes on derivative financial instruments | (34,050) | – | | Net foreign exchange gains/losses | 38,685 | (118,409) | | Total Other Income - Net | 185,030 | 134,470 | - Employee costs related to R&D activities increased from **RMB 209,727 thousand** in 2021 to **RMB 231,531 thousand** in 2022[19](index=19&type=chunk) Factors Affecting Operating Profit | Operating Profit Impact Factors | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Depreciation and amortization | 360,878 | 325,754 | | Raw materials and consumables used | 7,541,067 | 9,837,444 | | Employee costs | 1,360,013 | 1,384,366 | [Net Finance Income and Income Tax](index=12&type=section&id=Net%20Finance%20Income%20and%20Income%20Tax) Net finance income decreased to RMB 130,655 thousand in 2022 due to higher interest expenses, while income tax expense fell by 28.4% with an effective tax rate of 18.5% Net Finance Income Composition | Net Finance Income Component | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Finance costs | (60,315) | (55,390) | | Finance income | 190,970 | 194,392 | | Net finance income | 130,655 | 139,002 | Income Tax Expense | Income Tax Expense | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Current income tax | 680,779 | 622,249 | | Deferred tax | (166,328) | 96,622 | | Total income tax expense | 514,451 | 718,871 | - Several subsidiaries (Haitian Plastics Machinery, Wuxi Haitian, Ningbo Zhafir, Zhejiang Keqiang, Haitian Software) qualified as High and New Technology Enterprises, enjoying a preferential income tax rate of **15%**[25](index=25&type=chunk) [Earnings Per Share and Dividends](index=13&type=section&id=Earnings%20Per%20Share%20and%20Dividends) Basic earnings per share for 2022 decreased to RMB 1.42, and the Board declared a second interim dividend of HKD 0.55 per share, totaling HKD 0.55 for the year Earnings Per Share | Metric | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Profit attributable to Company shareholders | 2,264,668 | 3,051,968 | | Weighted average number of ordinary shares in issue (thousand shares) | 1,596,000 | 1,596,000 | | Basic earnings per share (RMB per share) | 1.42 | 1.91 | Dividends | Dividend | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Second interim dividend (HKD per share) | 0.55 | 0.95 | | Total dividends | 768,277 | 1,233,292 | [Capital Expenditure](index=13&type=section&id=Capital%20Expenditure) Total capital expenditure in 2022 significantly increased to RMB 1,455,773 thousand, primarily for the acquisition of property, plant, equipment, and land use rights Capital Expenditure Breakdown | Capital Expenditure Item | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Property, plant and equipment (excluding freehold land) | 1,151,994 | 847,998 | | Freehold land | 275,049 | – | | Land use rights | 28,730 | – | | Total | 1,455,773 | 847,998 | [Trade and Bills Receivables](index=14&type=section&id=Trade%20and%20Bills%20Receivables) As of year-end 2022, total trade and bills receivables decreased to RMB 3,397,755 thousand, with receivables within one year constituting the largest portion Aging Analysis of Trade and Bills Receivables | Aging | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Within 1 year | 3,052,421 | 3,522,779 | | 1 to 2 years | 284,580 | 143,641 | | 2 to 3 years | 24,586 | 43,013 | | Over 3 years | 36,168 | 33,155 | | Total | 3,397,755 | 3,742,588 | | Less: Impairment provision | (110,488) | (102,011) | | Net amount | 3,287,267 | 3,640,577 | [Financial Assets at Fair Value Through Profit or Loss](index=14&type=section&id=Financial%20Assets%20at%20Fair%20Value%20Through%20Profit%20or%20Loss) The company's holdings of financial assets at fair value through profit or loss decreased to RMB 4,655,428 thousand by the end of 2022, with expected annual returns between 1.14% and 7.50% - As of December 31, 2022, the Group held financial assets at fair value through profit or loss of approximately **RMB 4,655,428 thousand** (2021: RMB 6,153,364 thousand)[32](index=32&type=chunk) - These financial assets, including bank structured deposits and wealth management products, have expected annual returns ranging from **1.14% to 7.50%** (2021: 1.14% to 5.95%) with maturities from 0 to 974 days[32](index=32&type=chunk) [Share Capital](index=14&type=section&id=Share%20Capital) As of December 31, 2022, the company's authorized share capital was 5,000,000 thousand shares, with 1,596,000 thousand shares issued and fully paid, consistent with the previous year Share Capital Structure | Share Capital Type | Number of Shares (Thousand) | Amount (HKD Thousand) | Amount (RMB Thousand) | | :--- | :--- | :--- | :--- | | Authorized Share Capital | 5,000,000 | 500,000 | 502,350 | | Issued and Fully Paid Share Capital | 1,596,000 | 159,600 | 160,510 | [Trade and Bills Payables and Capital Commitments](index=15&type=section&id=Trade%20and%20Bills%20Payables%20and%20Capital%20Commitments) At the end of 2022, total trade and bills payables decreased to RMB 3,573,553 thousand, while capital commitments for property, plant, and equipment also saw a significant reduction Aging Analysis of Trade and Bills Payables | Aging | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Within 1 year | 3,562,532 | 4,210,477 | | 1 to 2 years | 5,444 | 2,674 | | Over 2 years | 5,577 | 9,138 | | Total | 3,573,553 | 4,222,289 | Capital Commitments | Capital Commitment | 2022 (RMB Thousand) | 2021 (RMB Thousand) | | :--- | :--- | :--- | | Acquisition of property, plant and equipment - contracted but not provided for | 453,510 | 819,344 | [Post-Reporting Period Events](index=15&type=section&id=Post-Reporting%20Period%20Events) After the reporting period, Haitian Plastics Machinery Group and other investors increased the capital of Ningbo Free Trade Zone Haitian Zhisheng Metal Forming Equipment Co, Ltd - Haitian Plastics Machinery contributed **RMB 99,800,000** to Haitian Zhisheng, with RMB 23,971,273 recorded as new registered capital and RMB 75,828,727 as capital reserve[36](index=36&type=chunk) - Other investors contributed a total of **RMB 243,200,000** to Haitian Zhisheng, with RMB 58,414,967 recorded as new registered capital and RMB 184,785,033 as capital reserve[36](index=36&type=chunk) - After the capital increase, Haitian Zhisheng's registered capital increased to **RMB 480,386,240**, with Haitian Plastics Machinery, other investors, and existing shareholders holding approximately 4.99%, 12.16%, and 82.85% equity, respectively[36](index=36&type=chunk) [Management Discussion and Analysis](index=16&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=16&type=section&id=Business%20Review) In 2022, global geopolitical conflicts, high inflation, and domestic pandemic resurgence led to a 23.2% decline in sales revenue, with net profit also falling significantly - In 2022, a global economic slowdown and deviations in China's economy weakened downstream demand and tightened capital expenditures, impacting orders for injection molding machines[38](index=38&type=chunk) - Sales revenue was **RMB 12,308.2 million**, a year-on-year decrease of **23.2%**[38](index=38&type=chunk) - The annual gross profit margin was **31.8%** (2021: 32.2%), benefiting from lower raw material prices in the second half of the year[38](index=38&type=chunk) - Net profit attributable to the company's shareholders reached **RMB 2,264.7 million**, a year-on-year decrease of **25.8%**, with a net profit margin of **18.4%** (2021: 19.1%)[38](index=38&type=chunk) [Domestic and Overseas Sales](index=16&type=section&id=Domestic%20and%20Overseas%20Sales) Domestic sales fell 28.6% to RMB 7,916.2 million due to pandemic impacts and shrinking demand, while overseas sales decreased 10.9% to RMB 4,392.0 million amid geopolitical and inflationary pressures Sales by Region | Sales Region | 2022 (RMB Million) | Share (%) | 2021 (RMB Million) | Share (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Domestic Sales | 7,916.2 | 64.3 | 11,088.2 | 69.2 | -28.6 | | Overseas Sales | 4,392.0 | 35.7 | 4,930.1 | 30.8 | -10.9 | | Total | 12,308.2 | 100 | 16,018.3 | 100 | -23.2 | - The decline in domestic sales was primarily due to repeated pandemic outbreaks and shrinking downstream demand in China[40](index=40&type=chunk) - The decrease in overseas sales was mainly attributed to geopolitical conflicts and high global inflation, despite growth in the North American region[40](index=40&type=chunk) [Product Line Sales Analysis](index=17&type=section&id=Product%20Line%20Sales%20Analysis) In 2022, Mars series sales dropped 33.4% due to weak domestic demand, while the Jupiter series grew 20.9%, driven by the automotive sector, particularly new energy vehicles Sales by Product Line | Product Line | 2022 (RMB Million) | Share (%) | 2021 (RMB Million) | Share (%) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | | Mars Series (Energy-saving) | 7,288.3 | 59.2 | 10,944.0 | 68.3 | -33.4 | | Jupiter Series (Two-platen) | 2,438.8 | 19.8 | 2,017.3 | 12.6 | 20.9 | | Zhafir Electric Series | 1,961.4 | 15.9 | 2,077.5 | 13.0 | -5.6 | | Other Series | 81.7 | 0.7 | 478.0 | 3.0 | -82.9 | | Parts and Services | 538.0 | 4.4 | 501.5 | 3.1 | 7.3 | | Total | 12,308.2 | 100 | 16,018.3 | 100 | -23.2 | - The decline in Mars series sales was mainly due to weak demand from downstream industries such as home appliances, daily necessities, and building materials, affected by the domestic pandemic, a downturn in the real estate market, and slowing export growth[41](index=41&type=chunk) - The sales growth of the Jupiter two-platen series benefited from the high prosperity of the global automotive industry, especially the new energy vehicle market[41](index=41&type=chunk) [Outlook](index=17&type=section&id=Outlook) The company anticipates a challenging global economic recovery in 2023 but sees long-term resilience and new opportunities from supply chain localization, while focusing on management rejuvenation, strategic optimization, and technological innovation - The global economic recovery is expected to face phased pressure in 2023, but long-term resilience and supply chain localization will bring new machinery equipment demand and development opportunities[42](index=42&type=chunk) - The domestic market shows signs of recovery in domestic demand, and manufacturing investment is expected to grow[43](index=43&type=chunk) - The company will accelerate the rejuvenation of its management team, implement reforms in marketing, supply chain, and technology, and optimize regional development and product strategies[43](index=43&type=chunk) - The company will consolidate its domestic market, accelerate overseas expansion with a "Five-Five" strategy, and build manufacturing bases in Serbia and Malaysia[43](index=43&type=chunk) - Through the IPD management model, the company will accelerate product technology innovation, launching the new fifth-generation models this year with comprehensive performance upgrades, including at least **20%** energy savings and intelligent features using AI algorithms[44](index=44&type=chunk) - The company continues to advance in sustainability and corporate social responsibility, launching energy-efficient models, promoting rooftop solar power, and achieving an upgraded MSCI ESG rating of BB and an EcoVadis Bronze medal[45](index=45&type=chunk) [Financial Review](index=19&type=section&id=Financial%20Review) The company's 2022 financial performance was impacted by the macroeconomic environment, resulting in decreased revenue, gross profit, and net profit, though it maintained a solid liquidity position - In 2022, sales revenue was **RMB 12,308.2 million**, a year-on-year decrease of **23.2%**, with domestic sales down **28.6%** and overseas sales down **10.9%**[46](index=46&type=chunk) - Gross profit was approximately **RMB 3,917.5 million**, a year-on-year decrease of **23.9%**, with an annual gross profit margin of **31.8%** (2021: 32.2%)[47](index=47&type=chunk) - Selling and administrative expenses decreased by **2.7%** to **RMB 1,798.8 million**, mainly due to lower sales commissions, labor costs, and other administrative costs[48](index=48&type=chunk) - Other income increased by **106.8%** to **RMB 328.6 million**, primarily from government subsidies[49](index=49&type=chunk) - Net finance income was **RMB 130.7 million**, a decrease from 2021, mainly due to increased interest expenses and foreign exchange losses[50](index=50&type=chunk) - Income tax expense decreased by **28.4%** to **RMB 514.5 million**, with the effective tax rate maintained at **18.5%** (2021: 19.1%)[51](index=51&type=chunk) - Net profit attributable to the company's shareholders was **RMB 2,264.7 million**, a year-on-year decrease of **25.8%**[51](index=51&type=chunk) - As of December 31, 2022, the Group's net cash position was **RMB 5,291.2 million** (2021: RMB 4,532.0 million), indicating a sound financial position[52](index=52&type=chunk) - Capital expenditure reached **RMB 1,455.8 million** (2021: RMB 848.0 million), mainly for the acquisition of property, plant, equipment, and land use rights[53](index=53&type=chunk) [Pledge of Group's Assets](index=21&type=section&id=Pledge%20of%20Group's%20Assets) As of December 31, 2022, the Group had not pledged any of its assets, which is consistent with the situation in 2021 - As at 31 December 2022, the Group did not pledge any of its assets[54](index=54&type=chunk) [Foreign Exchange Risk Management](index=21&type=section&id=Foreign%20Exchange%20Risk%20Management) As of year-end 2022, approximately 35.7% of the Group's products were exported, with sales denominated in foreign currencies, while foreign currency purchases were less than 10% of the total - As at 31 December 2022, approximately **35.7%** of the Group's products were exported to international markets, with sales denominated in US dollars or other foreign currencies[55](index=55&type=chunk) - The Group's purchases denominated in US dollars or other foreign currencies accounted for less than **10%** of total purchases[55](index=55&type=chunk) [Financial Guarantees](index=21&type=section&id=Financial%20Guarantees) At the end of 2022, the Group's guarantees for credit facilities granted to customers significantly decreased to RMB 73.7 million, with no material provisions identified during the period - As at 31 December 2022, the Group provided guarantees to banks for credit facilities granted to customers amounting to **RMB 73.7 million** (2021: RMB 579.5 million)[56](index=56&type=chunk) - The Group reassessed provisions based on customers' credit records and current market conditions, and no material provisions were identified[56](index=56&type=chunk) [Employees](index=21&type=section&id=Employees) As of the end of 2022, the Group employed a total of 7,159 employees, mostly in China, and maintained a competitive remuneration scheme and a commitment to a learning culture - As at 31 December 2022, the Group employed a total of **7,159** employees, most of whom were located in China[57](index=57&type=chunk) - The Group offers competitive remuneration packages to its employees, with discretionary bonuses based on individual and Group performance, and is committed to fostering a learning culture[57](index=57&type=chunk) [Payment of Dividends](index=21&type=section&id=Payment%20of%20Dividends) The Board declared a second interim dividend of HKD 0.55 per share for the year ended December 31, 2022, with no pre-determined dividend payout ratio for the future - The Board has declared a second interim dividend of **HKD 0.55** per share for the year ended 31 December 2022 (2021: HKD 0.95 per share), bringing the total dividend for 2022 to **HKD 0.55** per share[58](index=58&type=chunk) - The Board has decided to consider declaring a dividend once for each financial year in the future where appropriate and currently has no pre-determined dividend payout ratio[58](index=58&type=chunk) [Corporate Governance and Other Information](index=22&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Shareholders' Annual General Meeting and Share Transfer Registration](index=22&type=section&id=Shareholders'%20Annual%20General%20Meeting%20and%20Share%20Transfer%20Registration) The company will hold its Annual General Meeting on May 18, 2023, with share transfer registration suspended on specific dates to determine eligibility for dividends and meeting attendance - The company will hold its Annual General Meeting on **May 18, 2023**[59](index=59&type=chunk) - To qualify for the second interim dividend, the register of members will be closed on **April 4, 2023**[60](index=60&type=chunk) - To be eligible to attend and vote at the Annual General Meeting, the register of members will be closed from **May 15, 2023, to May 18, 2023**[61](index=61&type=chunk) [Compliance with Corporate Governance Code](index=22&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company's Board of Directors is committed to high standards of corporate governance and has complied with all applicable code provisions of the Corporate Governance Code throughout 2022 - The Company has complied with all applicable code provisions of the Corporate Governance Code as set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited during the year ended 31 December 2022[62](index=62&type=chunk) [Audit Committee](index=23&type=section&id=Audit%20Committee) The company's Audit Committee, comprising three independent non-executive directors, has reviewed the Group's financial reporting process, internal controls, and the annual financial information - The Audit Committee, consisting of three independent non-executive directors, is responsible for reviewing and supervising the Group's financial reporting process and internal controls[63](index=63&type=chunk) - The Audit Committee has reviewed the Group's condensed consolidated financial information and the accounting principles adopted for the year ended 31 December 2022, together with management and the external auditor[63](index=63&type=chunk) [Model Code for Securities Transactions by Directors](index=23&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Model Code for Securities Transactions by Directors as set out in Appendix 10 of the Listing Rules, and all directors have confirmed compliance during the reporting period - The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules, and all directors have confirmed their compliance with the code throughout the reporting period[64](index=64&type=chunk) [Scope of Work of Auditor](index=23&type=section&id=Scope%20of%20Work%20of%20Auditor) The figures in this preliminary announcement have been agreed by the company's auditor, PricewaterhouseCoopers, to the amounts set out in the Group's audited consolidated financial statements - The figures in respect of the Group’s results for the year ended 31 December 2022 as set out in this preliminary announcement have been agreed by the Company’s auditor, PricewaterhouseCoopers, to the amounts set out in the Group’s audited consolidated financial statements for the year[65](index=65&type=chunk) - The work performed by PricewaterhouseCoopers in this respect did not constitute an assurance engagement and, consequently, no assurance is expressed on the preliminary announcement[65](index=65&type=chunk) [Purchase, Sale or Redemption of Shares](index=23&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20Shares) Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the review period - Neither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s listed securities during the review period[66](index=66&type=chunk) [Publication of Annual Results and Report](index=24&type=section&id=Publication%20of%20Annual%20Results%20and%20Report) This results announcement is available on the websites of the HKEX and the company, and the annual report will be dispatched to shareholders and published online in due course - This results announcement is published on the website of Hong Kong Exchanges and Clearing Limited at www.hkex.com.hk and on the Company’s website at www.haitian.com[67](index=67&type=chunk) - The annual report of the Company will be dispatched to shareholders and published on the websites of the HKEX and the Company in due course[67](index=67&type=chunk)

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]