Financial Performance - For the six months ended June 30, 2021, the total revenue of JiaChen Holding Group Limited increased by approximately 87.1% to about RMB 125.7 million, compared to approximately RMB 67.2 million for the same period in 2020[7]. - The net profit for the same period rose from approximately RMB 6.1 million in 2020 to approximately RMB 12.4 million in 2021[7]. - Revenue for the six months ended June 30, 2021, was RMB 125.71 million, an increase from RMB 67.20 million for the same period in 2020, representing an increase of approximately 87%[41]. - Gross profit for the same period was RMB 29.34 million, compared to RMB 13.33 million in 2020, reflecting a significant improvement in profitability[41]. - The company reported a pre-tax profit of RMB 13,894 thousand for the six months ended June 30, 2021, compared to RMB 7,915 thousand for the same period in 2020, representing an increase of 75%[59]. - The total comprehensive income for the six months ended June 30, 2021, was RMB 12,319 thousand, up from RMB 6,017 thousand in the same period of 2020, indicating a 104.4% growth[48]. Revenue Breakdown - Sales of the full steel raised floor products contributed approximately 85.7% of total revenue, amounting to RMB 107.8 million, a 99.0% increase from RMB 54.2 million in 2020[11]. - Revenue from sales of calcium sulfate raised floor products increased by 37.5% to approximately RMB 17.9 million, up from RMB 13.0 million in 2020[12]. - The sales volume of full steel raised floor products was 0.82 million square meters, with an average unit price of RMB 131.5 per square meter[13]. - The sales revenue by region showed that China accounted for 87.0% of total revenue, amounting to RMB 109.4 million, while overseas sales were RMB 12.0 million, representing 9.6%[16]. - The geographical analysis of revenue showed that revenue from China was RMB 109,352 thousand for the six months ended June 30, 2021, up from RMB 58,158 thousand in 2020, representing an increase of 88%[64]. Cost and Expenses - Sales and distribution expenses rose by approximately RMB 1,200,000 or 49.1% to RMB 3,500,000, primarily due to increased courier and miscellaneous expenses[18]. - Administrative expenses decreased by approximately RMB 3,800,000 or 26.8% to RMB 10,500,000, mainly due to reduced listing expenses[18]. - The cost of goods sold and service contracts rose to RMB 96,372,000 for the six months ended June 30, 2021, compared to RMB 53,870,000 in 2020, indicating an increase of 79%[74]. - The financing costs for the six months ended June 30, 2021, were RMB 1,767 thousand, a decrease from RMB 2,680 thousand in the same period of 2020, reflecting a reduction of 34%[72]. Cash Flow and Assets - Cash and cash equivalents increased to approximately RMB 113,600,000 from RMB 52,600,000 as of December 31, 2020[21]. - Total assets as of June 30, 2021, were approximately RMB 411,900,000, up from RMB 395,800,000 at the end of 2020[21]. - Net cash inflow from operating activities was approximately RMB 42,600,000, an increase from RMB 26,500,000 in the same period last year[31]. - The company reported a net cash inflow from investing activities of RMB 20,616 thousand for the six months ended June 30, 2021, compared to a net cash outflow of RMB 11,172 thousand in the same period of 2020[50]. - The total equity attributable to the owners of the company was RMB 282.83 million as of June 30, 2021, up from RMB 270.51 million at the end of 2020[45]. Future Outlook and Plans - The company anticipates continued growth in demand for raised floor products due to increased investment in new office buildings and stricter government policies stimulating market demand[8]. - The company plans to focus resources on improving production technology and upgrading production lines to enhance product recognition and maintain effective cost control[8]. - The company plans to complete the construction of new factory buildings and related infrastructure by December 2022, with the installation of energy-saving facilities expected to be completed by March 2023[38]. - The company plans to utilize the remaining funds for the installation of additional production lines, with an expected completion date by March 2023[39]. - The company plans to continue expanding its market presence and investing in new product development to enhance its competitive edge[52]. Shareholder Information - Shareholder Shen Min holds a total of 609,000,000 shares, representing 60.90% of the company's equity[97]. - 嘉辰投资 holds 377,625,000 shares, accounting for 37.76% of the company's equity[109]. - 鑫辰投资 also holds 231,375,000 shares, which is 23.14% of the company's equity[109]. - The company’s issued share capital remained at 1,000,000,000 shares with a par value of HKD 0.01 per share as of June 30, 2021[94]. Corporate Governance - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules, confirming compliance for the six months ended June 30, 2021[119]. - The board believes that the company has adhered to all applicable provisions of the corporate governance code for the six months ended June 30, 2021[120]. - The audit committee, established on December 19, 2019, consists of three independent non-executive directors and is responsible for reviewing financial reporting procedures and risk management systems[122]. - The audit committee has reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2021[122]. Miscellaneous - The company did not recommend any interim dividend for the six months ended June 30, 2021, consistent with the previous year[34]. - The company has not established any arrangements that would allow directors and key executives to benefit from purchasing shares or debt securities of the company during the six months ending June 30, 2021[108]. - There have been no significant subsequent events for the company or the group from June 30, 2021, to the report date[121].

JiaChen Holding Group Limited 佳 辰 控 股 集 團 有 限 公 司 ( 於開曼群島註冊成立之有限公司) 股份代號：1937 2020 (B) � ( � De 年 度 報 告 公司資料 2 主席報告書 3 管理層討論及分析 5 董事及高級管理層履歷詳情 17 環境、社會及管治報告 21 企業管治報告 30 目 錄 董事會報告 42 | --- | --- | --- | --- | --- | --- | |--------------------------|-------|-------|-------|-------|-------| | | | | | | | | 獨立核數師報告 | | 51 | | | | | 綜合損益及其他全面收益表 | | 57 | | | | | 綜合財務狀況表 | | 58 | | | | | 綜合權益變動表 | | 60 | | | | | 綜合現金流量表 | | 61 | | | | | 綜合財務報表附註 | | 63 | | | | | 財務概要 | | 144 | | | | | | | | | | | | | | | | | | | ...

Revenue Performance - The total revenue for the six months ended June 30, 2020, was approximately RMB 67.2 million, a decrease of about RMB 57.7 million or 46.2% compared to the same period in 2019[8]. - Revenue from the sale of all-steel raised floor products contributed approximately 80.6% of total revenue, amounting to RMB 54.2 million, a decrease of 50.6% from RMB 109.6 million in the same period of 2019[9]. - Revenue from the sale of calcium sulfate raised floor products decreased by 14.8% to RMB 13.0 million from RMB 15.3 million in the same period of 2019[10]. - Revenue for the six months ended June 30, 2020, was RMB 67,202 thousand, a decrease of 46.3% from RMB 124,888 thousand in the same period of 2019[38]. - Revenue from external customers for the reporting segments totaled RMB 67,202 thousand for the six months ended June 30, 2020, down from RMB 124,888 thousand in the same period of 2019, representing a decrease of approximately 46%[57]. - Revenue from sales of raised access floors was RMB 54,743,000, while installation services contributed RMB 12,423,000 for the six months ended June 30, 2020[68]. - The company's income from external customers in China was RMB 58,158,000, a significant decrease from RMB 119,111,000 in the same period of 2019[64]. Profitability - Gross profit for the full steel raised floor products was RMB 10,547,000 with a gross margin of 19.5% for the six months ended June 30, 2020, down from RMB 27,145,000 and 24.8% in the same period of 2019[15]. - Total gross profit for the group was RMB 13,332,000 with a gross margin of 19.8% for the six months ended June 30, 2020, compared to RMB 30,842,000 and 24.7% in the same period of 2019[15]. - Gross profit for the same period was RMB 13,332 thousand, down 56.7% from RMB 30,842 thousand year-on-year[38]. - Operating profit before tax decreased by 11.6% to approximately RMB 7,900,000 for the six months ended June 30, 2020, down from RMB 9,000,000 in the same period of 2019[18]. - Operating profit decreased to RMB 10,595 thousand, a decline of 16.6% compared to RMB 12,715 thousand in the previous year[38]. - Net profit for the period was RMB 6,077 thousand, down 13.9% from RMB 7,059 thousand in the prior year[38]. - The total profit attributable to the company's owners for the six months ended June 30, 2020, was RMB 6,017,000, compared to RMB 6,989,000 for the same period in 2019, indicating a decline of about 14%[83]. Cash Flow and Financial Position - Cash and cash equivalents rose significantly to approximately RMB 100,800,000 as of June 30, 2020, compared to RMB 16,400,000 as of December 31, 2019[19]. - Net cash inflow from operating activities was approximately RMB 26,500,000 for the six months ended June 30, 2020, compared to a net cash outflow of RMB 13,500,000 in the same period of 2019[32]. - Net cash inflow from financing activities was approximately RMB 69,100,000 for the six months ended June 30, 2020, up from RMB 14,100,000 in the same period of 2019[34]. - Total assets increased to approximately RMB 414,000,000 as of June 30, 2020, from RMB 359,500,000 as of December 31, 2019[19]. - Total liabilities decreased to approximately RMB 136,700,000 as of June 30, 2020, from RMB 189,800,000 as of December 31, 2019[19]. - The total assets of the reporting segments as of June 30, 2020, were RMB 308,574 thousand, down from RMB 335,598 thousand as of December 31, 2019, reflecting a decrease of approximately 8%[59]. - The total liabilities of the reporting segments as of June 30, 2020, were RMB 133,234 thousand, compared to RMB 177,151 thousand as of December 31, 2019, showing a reduction of about 25%[59]. Market Outlook and Strategy - The market for raised floor products in China is expected to grow at a compound annual growth rate (CAGR) of approximately 6.0%, increasing from RMB 6,336.4 million in 2018 to approximately RMB 8,490.7 million by 2023[4]. - The overall market demand for raised floor products is influenced by factors such as the aging of office buildings and stricter government policies stimulating demand[4]. - The company plans to enhance its bidding efforts for potential projects and improve production technology to maintain effective cost control and strengthen competitiveness[6]. - The company plans to utilize unspent funds of RMB 62.8 million for capacity enhancement and efficiency improvements by the end of 2021[36]. - The company has allocated RMB 26.9 million for installing six additional production lines, with RMB 14.4 million already spent[36]. - The company aims to enhance its information technology systems with an allocated budget of RMB 2.3 million, which remains unspent as of June 30, 2020[36]. Shareholder Information and Corporate Governance - Mr. Shen holds a controlled corporation interest of 377,625,000 shares, representing 37.76% of the company's equity as of June 30, 2020[98]. - Ms. Zhang holds a controlled corporation interest of 231,375,000 shares, representing 23.14% of the company's equity as of June 30, 2020[98]. - The company has established a share option plan to incentivize selected participants, including employees and non-executive directors, as a reward for their contributions[102]. - The company has not granted any options under its share option scheme since its establishment, which is valid for 10 years from the adoption date[107]. - The company confirmed that there were no interests held by major shareholders that could directly or indirectly compete with the group's business as of June 30, 2020[119]. - The company has adopted the corporate governance code and has complied with all applicable provisions since its listing date until June 30, 2020[121]. - The audit committee, established on December 19, 2019, reviewed the unaudited interim results for the six months ending June 30, 2020[127]. Other Financial Information - Employee costs totaled approximately RMB 6,300,000 for the six months ended June 30, 2020, down from RMB 7,200,000 in the same period of 2019[31]. - Selling and distribution expenses decreased by 10.1% to approximately RMB 2,300,000 for the six months ended June 30, 2020, from RMB 2,600,000 in the same period of 2019[16]. - No interim dividend was recommended for the six months ended June 30, 2020, consistent with the previous year[35]. - The company did not incur any tax provisions in Hong Kong as there was no taxable income generated in that jurisdiction for the periods ended June 30, 2020, and 2019[78]. - The company reported a basic earnings per share of RMB 0.62 for the six months ended June 30, 2020, down from RMB 0.94 for the same period in 2019, representing a decrease of approximately 34%[83]. - The company recognized contract liabilities of RMB 2,597,000 as of June 30, 2020, compared to RMB 2,186,000 as of December 31, 2019, indicating an increase of approximately 19%[93].

Financial Performance - For the year ended December 31, 2019, the group's revenue increased to approximately RMB 270.9 million, representing an 8.9% increase compared to the previous year[10] - The net profit decreased by approximately 22.4% to about RMB 19.3 million, primarily due to listing expenses of approximately RMB 11.5 million[10] - Excluding the listing expenses, the net profit would have increased by approximately 6.3% compared to the previous year[10] - The group recorded a consolidated revenue of approximately RMB 270.9 million for the year ended December 31, 2019, an increase of approximately RMB 22.1 million or 8.9% compared to the previous year[32] - Total revenue for the year ended December 31, 2019, was approximately RMB 270.9 million, an increase from RMB 248.8 million in 2018, representing a growth of 8.9%[39] - Profit before tax decreased by 21.0% to approximately RMB 23.7 million in 2019, down from RMB 30.0 million in 2018, mainly due to increased impairment losses[46] - Gross profit for the full steel raised floor products was RMB 56.1 million with a gross margin of 25.3%, up from RMB 48.4 million and 23.7% in 2018[40] - The overall gross profit margin for the group improved to 25.2% in 2019 from 24.2% in 2018[40] Market and Industry Outlook - The market for raised access floor products in China is expected to grow at a compound annual growth rate (CAGR) of approximately 6.0% from 2018 to 2023, increasing from approximately RMB 6,336.4 million to about RMB 8,490.7 million[18] - The demand for raised access floors is driven by increasing construction of industrial office buildings in second-tier cities and the aging of existing office buildings[18] - The group aims to leverage its unique products and services, strict quality control, and experienced management team to outperform competitors in the industry[13] Capital and Investment - The group successfully raised approximately HKD 85.8 million from the global offering of 250 million shares, which will be used for land acquisition, production line establishment, and debt repayment[8] - The group plans to enhance production capacity and efficiency by acquiring land in Changzhou and constructing new facilities, with a total planned expenditure of approximately HKD 85.8 million[27] - Capital expenditures for the year were approximately RMB 2.7 million, up from RMB 1.4 million in 2018, mainly related to the purchase of machinery and equipment[59] Research and Development - Research and development expenses for the year ended December 31, 2019, were approximately RMB 9.9 million, compared to RMB 8.3 million for the year ended December 31, 2018[24] - The group is focused on enhancing its marketing efforts and R&D capabilities to capitalize on market opportunities[10] Environmental and Social Responsibility - The company reported a total gas emissions of approximately 28.4 kg of nitrogen oxides (NOx), 0.6 kg of sulfur oxides (SOx), and 2.1 kg of respirable suspended particles (RSP) for the year ending December 31, 2019[91] - The company has implemented several policies to mitigate carbon dioxide emissions, including weekly maintenance checks on exhaust and wastewater management systems[92] - The company is focused on enhancing its environmental, social, and governance performance to fulfill its responsibilities to society and the environment[85] - The company has committed to sustainable development by ensuring compliance with applicable laws and regulations in an ethical and transparent manner[86] Governance and Management - The board of directors is responsible for overall strategy and management oversight, with monthly financial and operational data provided for performance evaluation[141] - The company has adopted corporate governance practices since its listing on January 17, 2020, ensuring compliance with applicable codes[139] - The company has established a governance framework to ensure transparency and accountability in its operations[86] - The company has established a nomination committee to review the board's structure and recommend suitable candidates for board membership[166] Employee and Workplace Safety - The company employed a total of 218 employees, with a turnover rate of approximately 23%[118] - There were 3 reported work-related injuries, with zero fatalities in the year 2019[123] - The company has not experienced any labor disputes as of December 31, 2019, and strictly prohibits child labor and forced labor[127] Financial Position - Total assets as of December 31, 2019, were approximately RMB 359.5 million, up from RMB 319.8 million in 2018[47] - Total liabilities increased to approximately RMB 189.8 million in 2019 from RMB 169.4 million in 2018, with bank borrowings rising to RMB 113.4 million[47] - The debt-to-equity ratio increased significantly to 56.8% in 2019 from 42.7% in 2018, primarily due to increased bank borrowings[48] Cash Flow - For the fiscal year ended December 31, 2019, the net cash flow used in operating activities was approximately RMB 19.9 million, a slight decrease from RMB 20.0 million in 2018[60] - The net cash outflow from operating activities increased significantly from approximately RMB 18.8 million in 2018 to approximately RMB 54.4 million in 2019, indicating a net increase of about RMB 35.6 million[60] - The net cash used in investing activities was approximately RMB 3.7 million for the year ended December 31, 2019, compared to RMB 538,000 in 2018, primarily due to payments for the acquisition of property, plant, and equipment[60] - The net cash flow from financing activities increased to approximately RMB 23.9 million for the year ended December 31, 2019, up from RMB 16.3 million in 2018, mainly due to an increase in bank borrowings[60]