Ruifeng Power Group Company Limited 瑞豐動力集團有限公司 （在開曼群島註冊成立的有限公司） （股份代號：2025） 董事會會議通告 瑞豐動力集團有限公司（「本公司」）之董事會（「董事會」）謹此宣佈，本公司將於 2025年8月28日（星期四）舉行董事會會議，其中議程包括審議及批准本公司及其 附屬公司截至2025年6月30日六個月止之中期業績及其發佈，以及考慮派發中期股 息之建議（如有）。 香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部份內容而產生 或因倚賴該等內容而引致之任何損失承擔任何責任。 承董事會命 瑞豐動力集團有限公司 主席 孟連周 香港，2025年8月17日 於本公告日期，董事會包括本公司執行董事孟連周先生、孟令金女士、劉占穩先生、張躍 選先生及劉恩旺先生；及本公司獨立非執行董事萬明先生、任克強先生及黃德俊先生。 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 瑞豐動力集團有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02025 | 說明 | 普通股 | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.1 HKD | | 1,000,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.1 HKD | | 1,000,000,000 | 本月底法定/註冊股本總額： ...

Financial Performance - Revenue for 2024 reached RMB 956,853,000, a 33.1% increase from RMB 718,487,000 in 2023[13] - Gross profit for 2024 was RMB 101,288,000, with a gross margin of 10.6%, down from 12.2% in 2023[13] - Net profit attributable to equity shareholders for 2024 was RMB 19,320,000, representing a net profit margin of 2.0%, compared to 1.6% in 2023[13] - In 2024, the company's revenue and profit reached approximately RMB 956.9 million and RMB 19.3 million, representing an increase of about 33.2% and 71.5% respectively compared to the previous year[51] - Net profit increased from approximately RMB 11.3 million for the year ended December 31, 2023, to approximately RMB 19.3 million for the year ended December 31, 2024, representing a growth of about 71.5%[74] - Gross profit increased by approximately 15.5% from about RMB 87.7 million to about RMB 101.3 million, while gross margin decreased from 12.2% to 10.6%[66] Assets and Liabilities - Non-current assets increased to RMB 1,133,345,000 in 2024 from RMB 1,001,275,000 in 2023[18] - Current assets rose to RMB 710,242,000 in 2024, up from RMB 637,865,000 in 2023[18] - Current liabilities increased to RMB 666,232,000 in 2024, compared to RMB 482,859,000 in 2023[18] - The debt-to-equity ratio for 2024 was 31.8%, up from 24.7% in 2023[18] - Cash and cash equivalents increased to approximately RMB 57.5 million as of December 31, 2024, from approximately RMB 40.6 million as of December 31, 2023, due to increased borrowings[75] - Trade receivables and notes decreased from approximately RMB 270.5 million as of December 31, 2023, to approximately RMB 257.6 million as of December 31, 2024, a decrease of about 4.8%[76] - Trade payables and notes increased from approximately RMB 280.8 million as of December 31, 2023, to approximately RMB 373.0 million as of December 31, 2024, an increase of about 32.8%[77] - Interest-bearing borrowings rose from approximately RMB 243.5 million as of December 31, 2023, to approximately RMB 316.5 million as of December 31, 2024[78] Market and Sales - In 2024, the company achieved a significant revenue increase of approximately 33.2% to about RMB 956.9 million, with sales of new energy vehicle products accounting for approximately 31.6% of total revenue[23] - The company sold products worth approximately RMB 301.5 million to BYD, representing about 31.5% of the group's total sales[24] - The company has successfully captured opportunities in the rapidly growing new energy vehicle sector, leading to substantial capital expenditure investments[23] - The production and sales of new energy vehicles in China reached 12.9 million units each, with year-on-year growth of 34.4% and 35.5% respectively, making up 40.9% of total vehicle sales[47] - The total vehicle production and sales in China for 2024 were approximately 31.3 million and 31.4 million units, with year-on-year growth of about 3.7% and 4.5%[46] - The export of vehicles from China reached 5.9 million units in 2024, marking a year-on-year increase of approximately 19.3%[46] Strategic Focus and Future Plans - Future strategies include expanding market presence and enhancing research and development capabilities[12] - The company plans to enhance collaboration with new energy vehicle enterprises and explore more customer opportunities in 2025[28] - The company aims to expand its overseas market and increase product exports as part of its growth strategy[28] - The company is focusing on research and development to understand future industry trends, including new material applications and technologies[25] - The company is committed to maintaining growth and delivering sustainable long-term value to shareholders[29] Corporate Governance - The company emphasizes the importance of corporate governance and compliance, with independent directors ensuring accountability and transparency in operations[38] - The board includes independent non-executive directors with over 27 years of experience in accounting, corporate finance, compliance, and auditing, ensuring robust governance[38] - The company maintains a high level of corporate governance and has adopted the corporate governance code as per the listing rules, with the board consisting of four executive directors and three independent non-executive directors[137] - The board has mechanisms in place to ensure independent opinions are obtained, and these mechanisms were deemed effective during the fiscal year ending December 31, 2024[160] - The company has established internal controls and risk management procedures to address various operational, financial, and market risks[102] Risk Management - The company faces significant operational risks due to reliance on a few major clients, which could adversely affect financial performance if any client reduces orders[94] - The company is exposed to financial risks including interest rate risk, credit risk, and liquidity risk, which are regularly assessed by management[95] - The company is committed to sustainable development and has initiated multi-faceted risk analysis regarding environmental, social, and governance issues[105] Shareholder Information - The company proposed a final dividend of HKD 0.02 per share for the year ending December 31, 2024, up from HKD 0.015 per share in 2023[113] - The distributable reserves of the company as of December 31, 2024, are RMB 822 million, down from RMB 932 million as of December 31, 2023[126] - The board retains the discretion to update or modify the dividend policy based on various factors including operational performance and financial condition[117] - The annual general meeting is scheduled for May 30, 2025, where the proposed dividend will be subject to shareholder approval[120] Management and Leadership - The company has a strong leadership team with extensive experience in the manufacturing and financial sectors, including over 22 years in the cylinder and cylinder head manufacturing industry[35][36][37] - The company has a diverse management team with expertise in various sectors, including automotive and technology, which supports its growth strategy[40] - The leadership team has a proven track record of navigating the company through market changes and restructuring processes since its inception[35][36][37] - The company is actively involved in strategic decision-making processes that leverage the extensive experience of its board members in various industries[41] Audit and Compliance - KPMG has resigned as the company's auditor effective November 28, 2024, due to a disagreement over audit fees, and Fuhua Mazars has been appointed as the new auditor[165] - The audit committee held three meetings during the year and reviewed the financial statements for the six months ending June 30, 2024, and the year ending December 31, 2024[182] - The audit committee recommended the reappointment of the external auditor for the upcoming annual general meeting, confirming no disagreements with the board regarding the auditor's replacement[182]

Financial Performance - Revenue for the year ended December 31, 2024, increased by 33.2% to RMB 956,853,000 compared to RMB 718,487,000 in 2023[2] - Gross profit rose by 15.5% to RMB 101,288,000, with a gross margin of 10.6%, down from 12.2% in the previous year[2] - Profit attributable to equity shareholders surged by 71.5% to RMB 19,320,000, resulting in a net profit margin of 2.0%[2] - Basic and diluted earnings per share increased to RMB 0.024 from RMB 0.014[4] - Total revenue from customer contracts reached RMB 956,853,000 in 2024, a significant increase from RMB 718,487,000 in 2023, reflecting a growth of 33%[21] - The company's pre-tax profit for 2024 was RMB 21,463,000, an increase of 68.3% compared to RMB 12,755,000 in 2023[32] - Profit for the year increased from approximately RMB 11.3 million for the year ended December 31, 2023, to approximately RMB 19.3 million for the year ended December 31, 2024, an increase of approximately 71.5% driven by increased sales and VAT input tax deductions[69] Dividends - The company declared a final dividend of HKD 0.02 per share for the year, up from HKD 0.015 in 2023, pending shareholder approval[2] - A proposed final dividend of HKD 0.02 per share for the year ending December 31, 2024, has been recommended, up from HKD 0.015 per share in 2023[95] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 1,883,587,000, compared to RMB 1,639,140,000 in 2023[6] - Non-current assets increased to RMB 1,133,345,000 from RMB 1,001,275,000 year-on-year[6] - Current liabilities rose to RMB 666,232,000, up from RMB 482,859,000 in the previous year[6] - The company reported a total equity of RMB 994,540,000, slightly up from RMB 984,807,000 in 2023[7] - The company's total liabilities increased to RMB 488,056,000 in 2024 from RMB 377,008,000 in 2023, marking a growth of 29.5%[38] - Trade receivables increased to RMB 223,695,000 in 2024 from RMB 213,720,000 in 2023, representing a rise of 4.6%[35] - The company's contract liabilities increased to RMB 10,024,000 in 2024 from RMB 8,876,000 in 2023, indicating a growth of 12.9%[39] - The company’s trade payables rose to RMB 347,043,000 in 2024 from RMB 260,812,000 in 2023, reflecting a significant increase of 33%[38] Revenue Breakdown - Revenue from cylinder sales increased to RMB 716,830,000 in 2024, up from RMB 573,315,000 in 2023, representing a growth of 25%[21] - Revenue from cylinder head sales rose to RMB 213,159,000 in 2024, compared to RMB 138,451,000 in 2023, marking a growth of 54%[21] - Revenue from new energy vehicle products accounted for approximately 31.6% of total revenue for the year ending December 31, 2024, an increase of 18.9 percentage points from approximately 12.7% in the same period last year[52] Costs and Expenses - Employee costs rose to RMB 87,538,000 in 2024, up from RMB 83,471,000 in 2023, reflecting an increase of 5%[28] - Research and development costs increased to RMB 27,261,000 in 2024, compared to RMB 24,741,000 in 2023, representing a growth of 10%[30] - Selling expenses increased by approximately 27.1% from about RMB 10.4 million to approximately RMB 13.2 million, mainly due to increased warranty provisions[64] - Administrative expenses increased by approximately 9.1% from about RMB 75.1 million to approximately RMB 81.9 million, attributed to rising R&D costs and professional fees[65] Cash Flow and Financing - Cash and cash equivalents increased from approximately RMB 40.6 million as of December 31, 2023, to approximately RMB 57.5 million as of December 31, 2024, due to increased borrowings[70] - Interest-bearing borrowings increased from approximately RMB 243.5 million as of December 31, 2023, to approximately RMB 316.5 million as of December 31, 2024, with total debt amounting to approximately RMB 316.5 million[73] - Financing costs increased from approximately RMB 10.0 million for the year ended December 31, 2023, to approximately RMB 10.7 million for the year ended December 31, 2024, representing an increase of approximately 6.5% due to an increase in interest-bearing borrowings[67] Market and Operations - The company’s operations are primarily based in China, with the majority of revenue generated from Chinese customers[25] - New energy vehicle production and sales reached 12.9 million units each in 2024, with year-on-year growth of 34.4% and 35.5%, accounting for 40.9% of total new vehicle sales, an increase of 9.3 percentage points from 2023[46] - The automotive industry in China achieved a production and sales volume of approximately 31.3 million and 31.4 million vehicles in 2024, with year-on-year growth of approximately 3.7% and 4.5% respectively[45] - The company has increased its production capacity to meet the growing customer demand, contributing to synchronized profit growth[50] Risk Management - The company faces significant financial risks including interest rate risk, credit risk, and liquidity risk, which are regularly analyzed and managed by the management team[86] - Interest rate risk primarily arises from floating and fixed-rate borrowings, impacting cash flow and fair value[87] - Credit risk is mainly associated with trade receivables, with limited exposure due to high credit-rated counterparties[88] - The company monitors liquidity needs and maintains sufficient cash reserves and financing commitments from major financial institutions[89] Corporate Governance - The company has complied with corporate governance codes, with a board consisting of four executive directors and three independent non-executive directors[93] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[92] - The company’s auditor confirmed that the financial figures in the announcement are consistent with the audited financial statements for the year ending December 31, 2024[99] - The audit committee has reviewed the accounting principles and policies adopted by the group for the fiscal year ending December 31, 2024[100] - The annual performance announcement will be published on the Hong Kong Stock Exchange website and the company's website[101] - The annual report containing all information required by the listing rules will be published at an appropriate time[101]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 430,971,000, representing a 26.0% increase compared to RMB 341,929,000 for the same period in 2023[13]. - Gross profit for the same period was RMB 51,111,000, a slight increase of 1.5% from RMB 50,359,000 year-on-year[13]. - The net profit attributable to equity shareholders was RMB 14,062,000, reflecting a 17.4% increase from RMB 11,980,000 in the previous year[13]. - The gross profit margin decreased to 11.9%, down 2.8 percentage points from 14.7% in the prior year[13]. - The net profit margin slightly decreased to 3.3%, down 0.2 percentage points from 3.5% in the previous year[13]. - For the six months ended June 30, 2024, the company's revenue and profit were approximately RMB 431.0 million and RMB 14.1 million, representing increases of about 26.0% and 17.4% compared to the same period in 2023[21]. - The operating profit increased to RMB 22,401,000 from RMB 18,087,000 year-over-year, reflecting a growth of 24%[72]. - The company reported a profit attributable to equity shareholders of RMB 14,062,000, up from RMB 11,980,000 in the previous year, marking a growth of 17.3%[72]. - Basic and diluted earnings per share rose to RMB 1.76 from RMB 1.50, an increase of 17.3%[72]. - The company reported a total comprehensive income of RMB 14,320 thousand for the six months ended June 30, 2024, compared to RMB 13,166 thousand for the same period in 2023, reflecting an increase of 8.7%[75]. Assets and Liabilities - As of June 30, 2024, total non-current assets were RMB 1,000,201,000, while current assets were RMB 750,788,000[17]. - The total liabilities as of June 30, 2024, were RMB 590,517,000, resulting in a debt-to-equity ratio of 30.4%, up from 24.7% at the end of 2023[17]. - Trade receivables and notes increased from approximately RMB 2,705 million as of December 31, 2023, to approximately RMB 3,003 million as of June 30, 2024, representing an increase of approximately 11.0% due to revenue growth[44]. - Trade payables and notes rose from approximately RMB 2,808 million as of December 31, 2023, to approximately RMB 3,325 million as of June 30, 2024, reflecting an increase of approximately 18.4% mainly due to increased cost of sales[45]. - Interest-bearing borrowings increased by approximately 23.3% from approximately RMB 2,435 million as of December 31, 2023, to approximately RMB 3,003 million as of June 30, 2024[46]. - The debt-to-equity ratio rose from approximately 24.7% as of December 31, 2023, to approximately 30.4% as of June 30, 2024, primarily due to an increase in interest-bearing borrowings[47]. - As of June 30, 2024, the company's cash and cash equivalents amounted to approximately RMB 669 million, an increase from approximately RMB 406 million as of December 31, 2023, primarily due to increased interest-bearing borrowings[43]. Production and Sales - The company operates 5 precision casting lines and 28 machining lines, with 23 dedicated to cylinder blocks, 3 to cylinder heads, and 2 for other auxiliary components[10]. - The sales revenue from new energy vehicle products accounted for approximately 19.8% of the company's total sales revenue, with a significant position established in the new energy vehicle market[21]. - The sales volume of passenger car cylinder bodies increased from approximately 122,000 units for the six months ended June 30, 2023, to approximately 155,000 units for the same period in 2024, reflecting a growth rate of about 27.3%[24]. - The sales revenue from commercial vehicle cylinder bodies decreased from approximately 36.3% of total revenue for the six months ended June 30, 2023, to approximately 28.8% for the same period in 2024[25]. - The cylinder body sales for commercial vehicles increased from approximately 130,000 units to approximately 161,000 units, reflecting a growth rate of about 24.2%[25]. - Sales revenue from cylinder blocks rose from approximately RMB 271.5 million to approximately RMB 342.6 million, an increase of about 26.2%, with sales volume increasing from approximately 302,000 units to approximately 386,000 units, a growth of about 27.8%[32]. - Sales revenue from cylinder heads increased from approximately RMB 68.2 million to approximately RMB 84.4 million, a growth of about 23.9%, with sales volume rising from approximately 107,000 units to approximately 125,000 units, an increase of about 16.0%[33]. Expenses and Costs - Selling expenses decreased by approximately 12.6%, from approximately RMB 4.7 million to approximately RMB 4.1 million, attributed to enhanced quality control[37]. - Administrative expenses rose by approximately 11.8%, from approximately RMB 35.5 million to approximately RMB 39.7 million, due to increased maintenance and general office expenses[38]. - The total employee cost for the six months ended June 30, 2024, was approximately RMB 487 million, an increase of approximately 20.6% compared to RMB 404 million for the same period in 2023[54]. - The company incurred depreciation expenses of RMB 51,651,000 for its owned properties, plants, and equipment, up from RMB 49,312,000 in the previous year, indicating a rise of 4.8%[89]. - The total inventory cost for the six months ended June 30, 2024, was RMB 339,966,000, compared to RMB 294,646,000 for the same period in 2023, representing an increase of 15.3%[92]. Strategic Focus and Future Plans - The company continues to focus on optimizing and innovating production processes and technologies to enhance competitiveness[11]. - Future strategies include expanding production capabilities to meet the growing demand from leading automotive manufacturers in China[10]. - The company plans to enhance production capacity and operational efficiency to meet market demand and improve shareholder returns[30]. - The company aims to maintain a balance between high shareholder returns and a robust capital structure, adjusting its capital management strategy according to economic conditions[111]. - The company plans to continue its focus on the design, development, manufacturing, and sales of engine blocks and related components, indicating ongoing investment in core business areas[78]. Shareholder Information - As of June 30, 2024, Mr. Meng Lianzhou holds 411,042,000 shares, representing approximately 51.38% of the company[63]. - Mr. Liu Zhanwen also holds 411,042,000 shares, equivalent to about 51.38% of the company[64]. - The major shareholder, Longyue Venture Limited, owns 411,042,000 shares, accounting for 51.38% of the total shares[66]. - Zhao Jingmei, Meng Dongdong, and other individuals hold spouse interests in 411,042,000 shares, each representing 51.38%[66]. - Longyue Venture Limited is identified as a beneficial owner of 411,042,000 shares, which is 51.38% of the company[66]. - The company has established a concert party agreement among key shareholders to act in unison regarding their interests in Longyue[64]. - The company continues to comply with the Securities and Futures Ordinance regarding the disclosure of interests[65]. Corporate Governance - Ms. Meng Lingjin has been appointed as the Executive Director and Chief Financial Officer, effective from July 1, 2024[62]. - The company did not recommend any interim dividend for the six months ended June 30, 2024, compared to an interim dividend of HKD 0.015 per share for the same period in 2023[58]. - There were no significant investments or acquisitions during the six months ended June 30, 2024, nor any major plans for future investments or capital assets disclosed[52][53]. - The company has not reported any new strategies or market expansions in the provided documents[66].

Financial Position - As of June 30, 2024, the total non-current assets amounted to RMB 1,000,201 thousand, a slight decrease from RMB 1,001,275 thousand as of December 31, 2023[1] - Current assets increased to RMB 750,788 thousand from RMB 637,865 thousand, with inventory rising to RMB 314,948 thousand compared to RMB 273,116 thousand[1] - The total liabilities increased to RMB 590,517 thousand from RMB 482,859 thousand, primarily due to an increase in interest-bearing loans[1] - The total current liabilities increased to RMB 590,517 thousand from RMB 482,859 thousand, reflecting higher trade and other payables[1] - The total assets less current liabilities stood at RMB 1,160,472 thousand, slightly up from RMB 1,156,281 thousand[1] - The net asset value as of June 30, 2024, was RMB 988,175 thousand, compared to RMB 984,807 thousand as of December 31, 2023[1] Capital Structure - The capital-to-debt ratio rose from approximately 24.7% as of December 31, 2023, to about 30.4% as of June 30, 2024, attributed to an increase in interest-bearing loans by approximately RMB 568 million[3] Dividends - The company declared an interim dividend of HKD 0.015 per share, totaling HKD 12,000,000, to be paid on August 30, 2024[2] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024[2] Financial Reporting - The company will disclose the adjusted unaudited consolidated financial statements in its interim report for the six months ended June 30, 2023, at an appropriate time[4]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 430,971,000, representing a 26.0% increase from RMB 341,929,000 in the same period of 2023[1] - Gross profit for the same period was RMB 51,111,000, a slight increase of 1.5% from RMB 50,359,000, with a gross margin of 11.9%, down from 14.7%[1] - Profit attributable to equity shareholders for the period was RMB 14,062,000, up 17.4% from RMB 11,980,000, with a net profit margin of 3.3%, down from 3.5%[1] - Basic and diluted earnings per share increased to RMB 1.76 from RMB 1.50[2] - Total comprehensive income attributable to equity shareholders was RMB 14,320,000, compared to RMB 13,166,000 in the previous year[4] Assets and Liabilities - Non-current assets totaled RMB 1,000,201,000 as of June 30, 2024, slightly down from RMB 1,001,275,000 at the end of 2023[5] - Current assets increased to RMB 750,788,000 from RMB 637,865,000, with inventory rising to RMB 314,948,000[5] - Current liabilities rose to RMB 579,565,000 from RMB 482,859,000, with trade and other payables increasing to RMB 418,701,000[5] - Total equity as of June 30, 2024, was RMB 999,127,000, up from RMB 984,807,000 at the end of 2023[5] Revenue Sources - Sales of cylinder bodies contributed RMB 342,600,000, up 26% from RMB 271,472,000 in the previous year[12] - The majority of the company's revenue is generated from sales to customers in China, with no significant geographical segment analysis provided[13] - Sales revenue from passenger vehicle cylinder blocks increased from approximately 24.2% to 29.7% of total revenue, with sales volume rising from about 122,000 to 155,000 units, a growth of approximately 27.3%[35] - Sales revenue from commercial vehicle cylinder blocks decreased from approximately 36.3% to 28.8% of total revenue, despite an increase in sales volume from about 130,000 to 161,000 units, a growth of approximately 24.2%[36] Government Grants and Expenses - Government grants received increased to RMB 11,908,000 from RMB 6,345,000 year-over-year, indicating a 88% growth[15] - Employee costs rose to RMB 48,703,000, a 20% increase from RMB 40,394,000 in the previous year[17] - Research and development expenses were RMB 11,198,000, slightly up from RMB 11,069,000 in the same period last year[19] - The cost of inventory for the six months ended June 30, 2024, was RMB 379,860,000, compared to RMB 291,570,000 in the previous year, reflecting a significant increase[19] Strategic Focus and Market Position - The company continues to focus on the design, development, manufacturing, and sales of cylinder blocks and cylinder heads, indicating ongoing commitment to its core business[6] - The company has successfully positioned itself as the largest supplier for a leading global new energy vehicle client, capturing about 25% of their product series[32] - The company plans to continue expanding production lines to meet increasing customer demand, particularly in the new energy and automotive industrial products sectors[32] - The automotive engine development trend focuses on improving energy efficiency, reducing emissions, and advancing electrification and intelligence[31] Future Outlook and Investments - The company provided a positive outlook for Q3 2024, projecting revenue growth of 10% to 12%[72] - New product launches are expected to contribute an additional 200 million in revenue by the end of the fiscal year[72] - The company is investing in new technology development, allocating 50 million towards R&D initiatives in the next quarter[72] - Market expansion plans include entering two new regions, which are projected to increase market share by 5%[72] Operational Efficiency and Sustainability - Operational efficiency improvements are expected to reduce costs by 8% in the upcoming fiscal year[72] - Sustainability initiatives are being prioritized, with a commitment to reduce carbon emissions by 25% over the next five years[72]

Financial Performance - Revenue for 2023 reached approximately RMB 718.5 million, an increase of 19.7% from RMB 600.5 million in 2022[49]. - Net profit attributable to equity shareholders for 2023 was RMB 11.3 million, representing a net profit margin of 1.6%, compared to 3.4% in 2022[49]. - Gross profit for 2023 was RMB 87.7 million, with a gross margin of 12.2%, down from 16.2% in 2022[49]. - The company achieved a profit attributable to equity shareholders of RMB 50,000 thousand in 2023, showing a significant increase from RMB 36,570 thousand in 2022, representing a growth of approximately 37%[70]. - For the fiscal year ending December 31, 2023, the company's revenue attributable to equity shareholders was approximately RMB 718.5 million, representing an increase of about 19.7% compared to the previous year, while profit decreased by approximately 44.8% to RMB 11.3 million[124]. - Revenue increased by approximately 19.7% from about RMB 600.5 million for the year ended December 31, 2022, to about RMB 718.5 million for the year ended December 31, 2023[183]. Assets and Liabilities - Trade receivables increased from approximately RMB 257.1 million as of December 31, 2022, to approximately RMB 270.5 million as of December 31, 2023, representing a growth of about 5.2% due to increased revenue and a reversal of impairment losses of approximately RMB 5.3 million[4]. - Trade payables rose from approximately RMB 250.8 million as of December 31, 2022, to approximately RMB 280.8 million as of December 31, 2023, an increase of about 12.0%, primarily due to increased procurement of raw materials for production[5]. - Interest-bearing borrowings increased from approximately RMB 235.4 million as of December 31, 2022, to approximately RMB 243.5 million as of December 31, 2023, with collateral valued at approximately RMB 151.6 million[6]. - The debt-to-equity ratio rose from approximately 23.9% as of December 31, 2022, to approximately 24.7% as of December 31, 2023, mainly due to an increase in interest-bearing borrowings of approximately RMB 8.1 million[10]. - Current liabilities decreased to RMB 482.9 million in 2023 from RMB 578.7 million in 2022[53]. - Non-current assets as of December 31, 2023, totaled RMB 1,001.3 million, an increase from RMB 989.8 million in 2022[53]. Operational Developments - The company has initiated a transformation towards new energy vehicle components, enhancing production capacity and sales of new energy products[55]. - The company is preparing to develop intelligent automotive equipment manufacturing as part of its strategic expansion[55]. - The company has established a highly flexible production facility and process to meet specific customer needs, supported by excellent design and R&D capabilities[67]. - The company is focusing on integrating advanced technologies such as IoT, cloud computing, AI, and robotics to optimize resource utilization and operational efficiency, aiming to become a "smart factory"[141]. - The company is undergoing strategic adjustments to form three major business segments: traditional internal combustion, new energy hybrid, and overseas operations, aiming for stability and rapid growth[135]. Market and Sales - The company plans to expand into new energy products and overseas markets in 2024, aiming to establish a stable foundation for future sales revenue[77]. - The company is actively expanding its overseas export market, with expectations that export business will gradually increase its share of total revenue[102]. - The company aims to build a global sales target to mitigate risks associated with reliance on a single domestic market[102]. - The company has set a goal to enhance its product quality and technology to attract new customers in various overseas markets[102]. - The company anticipates a surge in orders from leading automotive manufacturers in 2024, driven by the new products under development[149]. Employee and Management - The total employee cost for the year ended December 31, 2023, was approximately RMB 83.5 million, an increase of about 11.1% compared to RMB 75.1 million for the year ended December 31, 2022[20]. - The management expressed gratitude to all employees for their hard work during a challenging year, emphasizing the importance of their contributions to the company's growth[58]. - The company is committed to a people-oriented development philosophy to enhance employee growth and welfare[77]. - The company emphasizes a culture of ownership among employees to drive personal and organizational success[103]. Challenges and Future Outlook - The company has no major investments or acquisitions planned beyond those disclosed in the annual report[17]. - The company plans to use cash generated from operations and bank borrowings to fund its business operations in the near future, with no significant external debt financing plans anticipated[3]. - The company is focusing on the development of new energy vehicles and related industries, emphasizing lightweight design to enhance vehicle performance and reduce energy consumption[160]. - The Chinese government has implemented various policies to support the automotive industry, including financial subsidies and tax exemptions, which are expected to drive growth in the new energy vehicle sector[143].

Financial Performance - For the fiscal year ending December 31, 2023, the company's revenue was approximately RMB 718.5 million, an increase of about 19.7% compared to RMB 600.5 million for the previous year[18]. - The net profit attributable to equity shareholders for the same period was approximately RMB 11.3 million, a decrease of about 44.8% from RMB 20.4 million in the prior year[18]. - Total revenue from customer contracts for 2023 was RMB 718,487,000, an increase from RMB 600,487,000 in 2022, representing a growth of 19.7%[66]. - The pre-tax profit for 2023 was RMB 10,006,000, compared to RMB 8,249,000 in 2022, indicating an increase of 21.3%[60]. - The company reported a loss of RMB 5,348,000 in trade receivables impairment in 2023, compared to a gain of RMB 5,833,000 in 2022[71]. - Net profit for the year decreased from approximately RMB 20.4 million for the year ended December 31, 2022, to approximately RMB 11.3 million for the year ended December 31, 2023, a decrease of about 44.8%[159]. Sales and Production - The sales volume of industrial vehicle cylinder blocks increased by approximately 78.5%, from about 64,000 units in 2022 to approximately 114,000 units in 2023[2]. - The sales volume of commercial vehicle cylinder blocks increased by about 6.0%, from approximately 254,000 units in 2022 to about 269,000 units in 2023[9]. - The sales volume of passenger car cylinder bodies increased by approximately 19.5% from about 202,000 units in 2022 to approximately 242,000 units in 2023[22]. - Cylinder head sales increased from approximately 194,000 units in 2022 to about 219,000 units in 2023, representing a growth of approximately 12.5%[110]. - The sales orders from new customers significantly contributed to the growth in industrial vehicle cylinder block sales[2]. Market and Strategic Focus - The company anticipates continued growth in passenger vehicle cylinder block sales due to increasing demand for plug-in hybrid vehicles[8]. - The company is optimistic about new product development for electric vehicles, which is expected to boost orders from leading automotive manufacturers in 2024[19]. - The company plans to allocate more resources to both domestic and overseas markets to capture potential customers in the commercial vehicle sector[1]. - The company aims to expand its overseas market presence, expecting increased demand for industrial vehicle cylinder bodies due to development in non-road areas[118]. - The company is focusing on the development of new energy vehicles and related upstream and downstream industries to achieve long-term growth[132]. Financial Position and Assets - The total assets less current liabilities increased to RMB 1,156.3 million in 2023 from RMB 1,025.3 million in 2022[13]. - The company's long-term bank borrowings as of 2023 were RMB 159,322,000, compared to RMB 4,612,000 in 2022, reflecting a substantial increase in financing[90]. - Trade receivables as of December 31, 2023, were RMB 213,720,000, an increase of 7.5% from RMB 198,801,000 in 2022[83]. - The debt-to-asset ratio rose from approximately 23.9% as of December 31, 2022, to approximately 24.7% as of December 31, 2023, mainly due to an increase in interest-bearing borrowings[150]. Costs and Expenses - Employee costs increased to RMB 83,471,000 in 2023 from RMB 75,127,000 in 2022, reflecting a rise of 11.5%[61]. - Interest expenses for borrowings rose to RMB 9,765,000 in 2023, up from RMB 8,048,000 in 2022, marking an increase of 21.4%[60]. - Administrative expenses increased by approximately 3.0% from about RMB 72.9 million to about RMB 75.1 million, primarily due to increased R&D costs[143]. - The research and development costs increased to RMB 24,741,000 in 2023 from RMB 21,129,000 in 2022, reflecting a growth of 16.5%[71]. Corporate Governance and Compliance - The company has maintained strict compliance with corporate governance codes throughout the fiscal year[185]. - The company maintains high levels of corporate governance and has adopted the corporate governance code as per the listing rules, with a deviation regarding the roles of Chairman and CEO being held by the same individual[196]. - All directors confirmed compliance with the standard code of conduct for securities trading as of the fiscal year ending December 31, 2023[197]. Future Plans and Investments - The company plans to build two new machining lines to enhance production capabilities[111]. - The company plans to continue capital expenditures to purchase machinery and equipment to enhance production capacity and optimize production lines[125]. - The company has initiated upgrades to its electric vehicle component manufacturing facilities and is investing more resources in developing new products for electric vehicles to meet market demand[168]. - The company has established an overseas project development team to expand its overseas market presence and has completed detailed plans for execution[134].

Share Capital and Dividends - As of June 30, 2023, the total issued and paid-up ordinary shares remained at 800,000,000, with a par value of RMB 66,425 thousand[1] - The company declared an interim dividend of HKD 0.015 per share for the six months ended June 30, 2023, down from HKD 0.017 per share in the same period last year, totaling HKD 12,000,000[11] - The company will suspend share transfer registration from October 25 to October 27, 2023, in preparation for the dividend payment[140] Financial Performance - Revenue for the first half of 2023 reached RMB 341,929,000, representing a 20.5% increase compared to RMB 283,737,000 in the same period of 2022[34] - Gross profit for the same period was RMB 50,359,000, an 8.9% increase from RMB 46,224,000, with a gross margin of 14.7%, down from 16.3%[34] - Profit attributable to equity shareholders decreased by 3.3% to RMB 11,980,000 from RMB 12,393,000, with a net profit margin of 3.5%, down from 4.4%[34] - The comprehensive income for the six months ended June 30, 2023, was RMB 13,166 thousand, compared to RMB 12,393 thousand for the same period in 2022[165] - The profit for the six months ended June 30, 2023, decreased to approximately RMB 12.0 million, a decline of about 3.3% from RMB 12.4 million for the same period in 2022[86] Assets and Liabilities - The total value of properties, plants, equipment, and receivables pledged for bank loans was approximately RMB 143,226,000 as of June 30, 2023, up from RMB 109,808,000 at the end of 2022[24] - Total liabilities were RMB 543,119 thousand, down from RMB 578,704 thousand as of December 31, 2022[162] - The net current asset value increased to RMB 158,142 thousand from RMB 35,491 thousand as of December 31, 2022[162] - The total asset value minus current liabilities reached RMB 1,130,876 thousand, up from RMB 1,025,302 thousand as of December 31, 2022[162] Cash Flow and Liquidity - Cash and cash equivalents increased significantly to RMB 76,113 thousand as of June 30, 2023, up from RMB 11,550 thousand as of December 31, 2022, marking a 558.5% growth[19] - Operating cash flow for the period was RMB 62,042 thousand, an increase from RMB 30,250 thousand in the previous period[196] - The net increase in cash and cash equivalents was RMB 64,967 thousand, significantly higher than RMB 3,121 thousand in the previous period[196] - The company plans to maintain optimal liquidity to support operational needs and growth strategies, with no significant external debt financing plans anticipated in the near term[87] Trade Receivables and Payables - Trade receivables and other receivables net amount to RMB 356,056 thousand as of June 30, 2023, compared to RMB 317,346 thousand as of December 31, 2022, representing a 12.2% increase[5] - Trade payables rose by approximately 8.3%, from about RMB 250.8 million as of December 31, 2022, to approximately RMB 271.7 million as of June 30, 2023[101] - Trade receivables aged analysis shows that receivables within one month increased to RMB 114,611 thousand as of June 30, 2023, compared to RMB 100,339 thousand as of December 31, 2022, a growth of 14.4%[19] Production and Operations - The company operates 5 precision casting lines and 31 machining lines, with 24 dedicated to cylinder blocks, 5 to cylinder heads, and 2 for other auxiliary components[31] - The company has established four new machining lines and one precision casting line to adapt to market changes and trends towards carbon neutrality and environmental protection[92] - The company initiated a digital factory construction project to enhance operational efficiency, reduce delivery cycles, and improve product quality[65] - The company plans to continue optimizing and innovating production processes and technologies to enhance competitiveness[32] Market and Sales Performance - The sales volume of passenger vehicle cylinder bodies increased significantly, with a growth of 44.1% in new energy vehicle sales, reaching 3.7 million units in the first half of 2023[58] - The revenue contribution from commercial vehicle cylinder bodies decreased from approximately 46.6% in the first half of 2022 to about 36.3% in the first half of 2023, with sales volume dropping by approximately 5.6%[60] - The sales volume of industrial vehicle cylinder bodies surged by approximately 68.2%, increasing from around 30,000 units in the first half of 2022 to about 50,000 units in the first half of 2023[61] - The automotive market in China is expected to see steady growth in production and sales, with a reported increase of 9.3% and 9.8% respectively in the first half of 2023 compared to the previous year[53] Risk Management - The group faces financial risks including interest rate risk, credit risk, and liquidity risk, which are regularly monitored and managed by the management team[110][111] - The geopolitical tensions have introduced uncertainties that may affect raw material supply and product demand, impacting the group's operational and financial conditions[109] - The company has established internal controls and risk management procedures to address various operational, financial, and market risks, which are deemed sufficient and effective by the board[139] Employee and Corporate Governance - Employee costs totaled approximately RMB 40.4 million for the six months ended June 30, 2023, representing an increase of about 1.5% compared to RMB 39.8 million for the same period in 2022[120] - The company aims to enhance employee satisfaction and competitiveness through the establishment of a corporate culture and human resources system starting from June 2023[64] - The company has complied with corporate governance codes and will continue to review its governance policies[142] Shareholding Structure - As of June 30, 2023, the company has a significant shareholder, Long Leap Ventures Limited, holding 411,042,000 shares, representing 51.38% of the total shares[134] - The shareholding structure indicates that key executives, including Mr. Meng Lianzhou, hold substantial interests in the company, with 51.38% ownership through controlled entities[145] - The company’s major shareholders include Liu Zhanwen and Zhang Yuexuan, who also hold significant shares in Long Leap Ventures Limited[145]