Revenue Performance - In the first half of 2024, the Group's revenue from CAM sales amounted to approximately US$5.7 million, representing a decrease of 4.3% compared to US$6.0 million in the first half of 2023, accounting for 65.9% of the Group's total revenue[11]. - For the six months ended June 30, 2024, the Group's revenue was approximately US$8.7 million, a decrease of 22.9% compared to US$11.2 million in the same period of 2023[16]. - Intelligent sense sales revenue reached approximately US$2.2 million, accounting for 25.7% of total revenue, representing a significant increase of 291.6% compared to US$0.6 million in the same period of 2023[15]. - Revenue from IC solutions was approximately US$0.7 million, a decrease of 84.5% from US$4.7 million in the same period of 2023, accounting for 8.4% of total revenue[15]. - The percentage of revenue contribution from customers in sanctioned countries slightly increased compared to the corresponding period in 2023[51]. - For the six months ended June 30, 2024, total external revenue was $8,661,523, a decrease from $11,234,029 for the same period in 2023, representing a decline of approximately 22.8%[95]. Market Analysis - Revenue from the largest market, Europe, accounted for 73.1% of CAM's total sales, with a year-on-year decrease of 9.5% primarily due to a decline in product unit prices[11]. - Sales in the domestic market decreased by 26.1% year-on-year, mainly due to the absence of bulk engineering card orders in the first half of this year compared to the same period last year[11]. - Emerging market sales slightly decreased by 2.6% year-on-year, remaining approximately at the same level as the same period last year[11]. - Order demand in Western and Northern Europe decreased year-on-year, primarily due to slower-than-expected inventory consumption by customers[11]. - The Group's CAM sales in Austria and Eastern Europe increased year-on-year due to increased procurement volume driven by major operators' business development[11]. Financial Performance - Gross profit for the six months ended June 30, 2024, was US$4.3 million, an increase of US$0.4 million, with a gross profit margin of 49.4%, up from 34.1% in the same period of 2023[20]. - The loss for the period ended 30 June 2024 was US$15.1 million, compared to a profit of US$0.3 million in the same period last year, primarily due to increased share of losses from investee companies[23]. - The total comprehensive loss for the period was $15,935,622, which is a substantial increase from the total comprehensive loss of $4,965,630 in the prior year[62]. - The company reported a basic loss per share of $(0.05) for the six months ended June 30, 2024, compared to a profit of $0.00 for the same period in 2023[141]. - The net loss attributable to the owners of the company for the period was $14,929,101, compared to a profit of $407,100 in the prior year[145]. Expenses and Cost Management - Research and development expenses decreased by 2.8% to US$5.4 million, remaining approximately at the same level as the previous year[21]. - Selling and distribution expenses amounted to US$0.7 million, an increase of 5.0% compared to the same period last year, primarily due to increased marketing activities in the intelligent sense business[23]. - General and administrative expenses decreased by 16% to US$3.1 million compared to the same period last year, mainly due to reduced personnel costs[23]. - Total cost of sales, research and development expenses, selling and distribution expenses, general and administrative expenses, and net impairment losses on financial assets amounted to $13,730,030, down from $17,268,682, indicating a decrease of approximately 20.5%[127]. Cash Flow and Liquidity - As of 30 June 2024, total cash and cash equivalents amounted to US$16.8 million, down from US$20.6 million as of 31 December 2023[25]. - The current ratio as of 30 June 2024 was 591.5%, an increase from 459% as of 31 December 2023[25]. - The net cash used in operating activities was $(2,897,022) USD, a significant improvement compared to $(12,002,774) USD for the same period in 2023, indicating a reduction of approximately 75.8%[68]. - The company’s cash and cash equivalents were reported at $16,838,811, down from $20,567,731 at the end of 2023[58]. Investments and Equity - As of June 30, 2024, the Group held equity securities investments in six unlisted companies with a total fair value of approximately US$24.7 million[27]. - The Group's equity interest in X-Times was diluted from 10% to approximately 4.0% as of June 30, 2024, due to capital injection agreements with independent PRC corporate investors[27]. - The Group considers its investment in X-Times as a strategic investment to broaden its IC solutions business segment[28]. - The Group's total capital contribution to the Hongtai Angel Fund was RMB100,000,000 (approximately USD15.3 million), with the Group holding a 36% equity interest[130]. Corporate Governance - The Company has adopted the Corporate Governance Code and complied with its provisions, except for the separation of the roles of chairman and chief executive[55]. - The dual role arrangement of chairman and chief executive is believed to provide strong leadership and effective business management[55]. - The Board will continue to review and monitor practices to maintain high standards of corporate governance[55]. Future Outlook - The Group's management remains optimistic about future growth opportunities in both domestic and international markets despite current challenges[11]. - The Group will continue to explore new market opportunities and drive business transformation in response to the trends in the global IC industry[30]. - The Group aims to enhance its hard power through investment layout, technology integration, and R&D upgrades to create greater value for shareholders[31].

Financial Performance - Revenue for the six months ended June 30, 2024, was $8,661,523, a decrease of 22.8% compared to $11,234,029 for the same period in 2023[3] - Gross profit increased to $4,280,063, up 11.6% from $3,835,519 in the previous year[3] - Operating loss for the period was $2,424,327, compared to an operating profit of $8,673,805 in the same period last year[3] - Loss before income tax was $15,145,445, significantly higher than the loss of $1,981,684 reported in the prior year[3] - The net loss attributable to owners of the Company was $14,929,101, compared to a profit of $407,100 in the same period of 2023[3] - Total comprehensive losses for the period amounted to $15,935,622, compared to $4,965,630 in the previous year[4] - The basic and diluted loss per share attributable to owners of the Company was $(0.05) for the period, compared to $0.00 in the previous year[3] - For the six months ended June 30, 2024, the total cost of sales and expenses amounted to USD 13,730,030, a decrease of 20% from USD 17,268,682 in the same period of 2023[32] - The loss for the period amounted to US$15.1 million, compared to a profit of US$0.3 million in the same period last year[52] Assets and Liabilities - Non-current assets decreased to $146,729,173 from $162,036,565 as of December 31, 2023[5] - Cash and cash equivalents decreased to $16,838,811 from $20,567,731 at the end of 2023[5] - Inventories decreased to $3,494,938 from $4,267,405 as of December 31, 2023[5] - Total equity decreased from $171,496,978 as of December 31, 2023, to $155,144,778 as of June 30, 2024, representing a decline of approximately 9.5%[6] - Retained earnings fell from $91,067,419 to $76,138,318, a decrease of about 16.4%[6] - Total liabilities decreased from $24,441,947 to $20,600,327, reflecting a reduction of approximately 15.5%[6] - Non-current liabilities increased significantly, with lease liabilities rising from $270,670 to $882,957, an increase of about 226.5%[6] - Trade payables decreased from $768,202 to $672,197, a decline of approximately 12.5%[6] - The Group's total equity and liabilities amounted to $175,745,105 as of June 30, 2024, down from $195,938,925 as of December 31, 2023, indicating a decrease of about 10.3%[6] Segment Performance - For the six months ended June 30, 2024, external revenue totaled $8,661,523, with contributions of $5,703,739 from CAM and $2,228,633 from intelligent sensing[23] - The segment results showed an adjusted loss before tax of $12,983,736, with CAM reporting a profit of $1,574,592 and intelligent sensing a loss of $1,036,395[23] - Segment assets as of June 30, 2024, amounted to $137,510,048, with CAM holding $11,555,556 and intelligent sensing $2,836,582[25] - Revenue from the largest market, Europe, accounted for 73.1% of CAM's total sales, with a year-on-year decrease of 9.5% primarily due to a decline in product unit prices[40] - The Group's intelligent sense sales revenue was approximately US$2.2 million in the first half of 2024, an increase from US$0.6 million in the same period of 2023, accounting for 25.7% of total revenue[44] - Revenue from IC solutions was approximately US$0.7 million in the first half of 2024, representing a decrease of 84.5% compared to US$4.7 million in the first half of 2023, accounting for 8.4% of total revenue[44] Research and Development - The Group's R&D expenditure amounted to approximately US$2.6 million, primarily for staff costs and asset depreciation and amortization[44] - Research and development expenses decreased by 2.8% to US$5.4 million, remaining approximately at the same level as the previous year[49][50] - The Group plans to continue investing resources in IC solutions to promote the marketization process of new revenue growth points[44] - The Group is focused on optimizing the consumer electronics production line for health-related safety testing to improve product quality rate and delivery capabilities[63] Governance and Compliance - The Group maintains a public float of no less than 25% under the Listing Rules as of the announcement date[72] - The Group has complied with the Corporate Governance Code except for the separation of the roles of chairman and chief executive[74] - All Directors have complied with the required standards set out in the Model Code during the six months ended June 30, 2024[79] - The unaudited condensed consolidated interim financial information for the six months ended 30 June 2024 has not been reviewed by the Company's external auditor[80] Future Outlook - The Group aims to secure orders in the domestic market for the Simple TV Project in the fourth quarter, while promoting a full product series[60] - The Group plans to leverage the 8K broadcast opportunity to expedite the initiation of the switching project for state-secret cards[60] - The Group will enhance market research and customer needs exploration for its IC solutions business, aiming for diverse application scenarios in chip products[61] - The Group is actively monitoring industry trends and communicating with operators to uncover new market opportunities[42]

Financial Performance - The Group's revenue for 2023 was US$22.5 million, a decrease of 23.6% compared to US$29.4 million in 2022[14] - Gross profit for the year decreased by 31.0% year-on-year to US$8.4 million[14] - Basic loss per share for the year was US 4.3 cents, compared to basic earnings per share of US 17.9 cents in 2022[14] - For the year ended December 31, 2023, the Group recorded revenue of approximately USD14.1 million from CAM, an increase of about 2.8% year-on-year, accounting for approximately 62.5% of the Group's total revenue[32] - Revenue from the Group's cloud services was approximately USD0.9 million, representing a decrease of around 75.6% year-on-year due to the completion of a major service contract in 2023[46] - Revenue from the Group's IC solutions was approximately USD7.5 million, representing approximately 33.2% of the total revenue[47] - The Group reported a loss of USD 14.2 million for the year ended December 31, 2023, compared to a profit of USD 57.1 million in 2022, primarily due to the absence of a one-off gain from the disposal of subsidiaries[70] Dividends and Shareholder Value - The Board proposed a final dividend of US0.1 cent, totaling US$415,743[14] - The Group aims to expand its business in 2024 to create greater value for shareholders[19] - The Group is focused on creating greater value for shareholders through prudent investment strategies and stable financial fundamentals[115] Market and Product Development - The Group's subsidiary, SMIT Shenzhen, was recognized as an "Innovative Small and Medium-sized Enterprise" and a "Specialised, Refined, Featured and Original Small and Medium-sized Enterprise" by the Shenzhen government[15] - New product lines in pressure sensors and optical sensors are currently undergoing field tests to prepare for mass production[16] - The Group plans to leverage domestic market opportunities by promoting USB Dongle as a hardware alternative and aims for implementation in local media networks[17] - The integrated circuit solutions business will continue to develop smart sensing solutions and collaborate closely with leading companies in the automotive and consumer electronics sectors[18] - The Group's smart sensing solution production line continued to innovate, with a full range of optical sensors unveiled at major exhibitions[48] - The Group is focused on the development and promotion of smart sensing solutions, particularly in pressure distribution detection tools, targeting the automotive industry and consumer electronics[114] Financial Position and Cash Flow - As of December 31, 2023, total cash and cash equivalents amounted to USD 20.6 million, down from USD 48.2 million in 2022, with a current ratio of 459.0%[72] - The Group's net current assets were USD 26.5 million as of December 31, 2023, compared to USD 25.4 million in the previous year[72] - As of December 31, 2023, the Group had no bank borrowings, down from USD 16.9 million in 2022, and lease liabilities of USD 0.9 million, reduced from USD 1.7 million in 2022[78] - The Group's gearing ratio was 0% as of December 31, 2023, compared to 9% in 2022[78] - The Group held equity securities investments in six unlisted companies, with a fair value of approximately USD 24.8 million as of December 31, 2023, compared to USD 25.0 million in 2022[80] Research and Development - Research and development expenses for IC solutions were approximately USD7.0 million, representing approximately 31.3% of the total revenue[47] - Research and development expenses decreased by 70.5% to USD 11.2 million for the year ended December 31, 2023, primarily due to the disposal of two major subsidiaries in the fourth quarter of 2022[62] - The Group is leveraging its research and development resources to ensure continuous training for employees, enhancing their technical and management skills[105] Governance and Board Structure - The Board consists of seven directors, including two executive directors, two non-executive directors, and three independent non-executive directors[126] - The Board held four meetings during the year ended December 31, 2023, and is obliged to hold at least four regular meetings in the forthcoming year[133] - The Company is committed to complying with the Corporate Governance Code and will continue to review its governance mechanisms annually[134] - The Nomination Committee conducted an annual review of the Board's structure, number of members, and composition, assessing the independence of independent non-executive Directors[152] Audit and Compliance - The Audit Committee held two meetings during the year ended December 31, 2023, to fulfill its responsibilities[174] - The remuneration paid to PricewaterhouseCoopers for audit and review services in 2023 was USD 264,000, a decrease from USD 312,000 in 2022[194] - The total auditor's remuneration for 2023 was USD 315,000, compared to USD 398,000 in 2022, reflecting a reduction of approximately 20.8%[194] - The Company has adopted a code of conduct for securities transactions that meets or exceeds the required standards under the Model Code[189] Employee and Talent Management - Staff costs for the year ended December 31, 2023, totaled USD 10.7 million, accounting for 47.6% of the Group's total revenue[99] - The Group employed approximately 158 employees as of December 31, 2023, down from 171 employees in 2022[99] - The Group is addressing the critical talent shortage and potential threats to intellectual property security while navigating a competitive industry landscape[106] - The Group's remuneration policy and employee training programs are regularly reviewed to attract and retain qualified personnel[105]

Financial Performance - For the year ended December 31, 2023, the total revenue was USD 22,471,495, a decrease of 23.6% compared to USD 29,410,713 in 2022[6] - Gross profit for the same period was USD 8,376,508, down 30.5% from USD 12,138,780 in 2022[6] - Operating profit significantly decreased to USD 7,036,968 from USD 75,186,985, reflecting a decline of 90.6%[6] - The net loss for the year was USD 14,168,867, compared to a profit of USD 57,112,673 in the previous year, marking a substantial turnaround[6] - Basic loss per share attributable to owners of the Company was USD (0.043), compared to earnings of USD 0.179 per share in 2022[6] - Total comprehensive loss for the year was $16,293,239, a stark contrast to the total comprehensive income of $49,614,359 in the previous year[21] - The company reported a loss of $14,168,867 for the year ended December 31, 2023, compared to a profit of $57,112,673 in 2022, indicating a significant decline in performance[21] - The segment results showed a total loss of USD (11,301,488) for the year, with significant losses in the Rapid verification systems and IC solutions segments[110] Assets and Liabilities - Total assets as of December 31, 2023, were USD 195,938,925, down from USD 247,235,256 in 2022, indicating a decrease of 20.7%[10] - Cash and cash equivalents decreased to USD 20,567,731 from USD 48,232,794, a decline of 57.3%[10] - Non-current assets decreased to USD 162,036,565 from USD 184,908,893, reflecting a reduction of 12.3%[10] - Current liabilities decreased to $7,385,371 in 2023 from $36,916,859 in 2022, reflecting a reduction in trade payables and contract liabilities[26] - Total liabilities dropped to $24,441,947 in 2023, down from $59,650,536 in 2022, indicating improved financial stability[26] - The company’s total equity and liabilities stood at $195,938,925 as of December 31, 2023, compared to $247,235,256 in 2022[26] Expenses and Income - The Company reported a significant reduction in research and development expenses to USD (11,230,204) from USD (38,114,876), a decrease of 70.5%[6] - Corporate and unallocated expenses for the year ended December 31, 2023, were USD (4,893,455), compared to USD (4,691,674) in 2022, indicating an increase in unallocated expenses[91] - The cost of sales, research and development expenses, selling and distribution expenses, and general and administrative expenses totaled USD 34,242,903, down from USD 68,570,890 in 2022, indicating a reduction of about 50%[117] - The company recognized other income and gains of USD 11,588,046 during the year, compared to USD 87,903,040 in 2022, reflecting a significant decrease[115] - The company reported other income of USD 6,878,347 from government grants for the year ended December 31, 2023, compared to USD 26,394,555 in the previous year[93] Market and Segment Performance - The company has identified four reportable segments: CAM, rapid verification systems and software, cloud services, and IC solutions, which are regularly reviewed by the chief operating decision maker[81] - For the year ended 31 December 2023, the Group recorded revenue of approximately USD 14.1 million from CAM, an increase of about 2.8% year-on-year, accounting for around 62.5% of the Group's total revenue[140] - The European market (excluding Russia) accounted for approximately 54.4% of total CAM sales, with revenue decreasing about 16.3% year-on-year[140] - The Mainland China market contributed approximately 34.9% of total CAM sales, representing an increase of around 132.9% year-on-year[140] - The Group's cloud service business, initiated in 2020, provides remote verification computing power services through centralized deployment of integrated circuit design verification tools[170] - The Group's revenue from emerging markets declined year-on-year, primarily due to reduced demand from Uzbekistan, Saxony, and African operators[166] - The Group's operations in emerging markets faced a decline in sales, particularly in Uzbekistan, Kazakhstan, and Africa, due to reduced demand[195] Future Outlook and Strategic Plans - The company plans to hold its 2024 Annual General Meeting on May 31, 2024, where it will discuss future strategies and performance outlook[29] - The company plans to continue focusing on market expansion and new product development to improve future performance[107] - The Group's engineering card sales in the domestic market are expected to further increase in 2024, focusing on localization projects by satellite retransmission operators[168] - A new network IP platform with a full-service solution is in progress and is expected to be implemented in the first batch of two major provincial broadcasters[198] Taxation and Financial Adjustments - The effective tax rate for Hong Kong profits tax remained at 16.5% for both 2023 and 2022[100] - The income tax expense changed from a tax expense of USD 10.1 million in 2022 to an income tax credit of USD 1.8 million in 2023, mainly due to over-provisioning in the previous year[187] - Current income tax for the year included an over-provision from the prior year amounting to USD (1,738,429) in 2023, compared to a provision of USD 5,264,948 in 2022[121] Shareholder Information - The proposed final dividend per share remained at HKD 0.01 (approximately USD 0.001) for both 2023 and 2022, with total dividends of USD 415,743 for 2023 compared to USD 409,099 for 2022[126] - The proposed final dividend for the year ended 31 December 2023 is HK$0.01 (approximately USD0.001) per share, totaling USD415,743[145] - The weighted average number of ordinary shares in issue increased to 322,751,966 in 2023 from 320,356,163 in 2022[123]

Financial Performance - The Group's revenue decreased by 29.1% compared to the same period in 2022, primarily due to a decline in revenue from the IC solutions segment[1]. - Gross profit for the six months ended June 30, 2023, was US$3.8 million, down US$3.3 million from the same period in 2022, with a gross profit margin of 34.1% compared to 44.9% in 2022[2][4]. - Profit for the period amounted to US$0.3 million, representing a turnaround compared to the same period in 2022, mainly due to a one-off gain on deemed disposal of an associate[8]. - For the six months ended June 30, 2023, the total comprehensive loss was USD 4,965,630, compared to a loss of USD 9,630,930 for the same period in 2022, indicating a significant improvement[59]. - The company reported a profit of USD 407,100 for the period, contrasting with a loss of USD 4,669,870 in the previous year, marking a turnaround in performance[59]. - The company reported a profit of USD 280,005 for the six months ended June 30, 2023, compared to a loss of USD 4,660,077 in the same period last year[176]. - The total comprehensive loss attributable to owners of the company was USD 4,787,151, compared to USD 9,630,930 in the previous year[176]. Expenses and Cost Management - Research and development expenses decreased by 72.1% to US$5.5 million compared to the same period last year, mainly due to the disposal of two major subsidiaries in the IC solutions business[3][5]. - Selling and distribution expenses amounted to US$0.6 million, representing a decrease of 23.0% compared to the same period last year[8]. - General and administrative expenses decreased by 33.1% to US$3.7 million compared to the same period last year[8]. - The Group's total staff costs for the six months ended June 30, 2023, amounted to US$5.3 million, accounting for 47.2% of total revenue[14]. - The company reported finance costs of USD 251,014 for the six months ended June 30, 2023, compared to USD 712,009 in the same period of 2022, indicating a reduction in financing expenses[192]. Cash Flow and Liquidity - As of June 30, 2023, total cash and cash equivalents amounted to US$22.9 million, down from US$48.2 million as of December 31, 2022[10]. - The total cash and cash equivalents at June 30, 2023, were $22,913,019, down from $34,596,630 at the end of June 2022[75]. - For the six months ended June 30, 2023, the net cash used in operating activities was $(12,002,774), compared to a net cash generated of $15,448,045 for the same period in 2022[75]. - The net cash used in financing activities was $(12,968,876), compared to a net cash generated of $2,717,890 in the same period last year[75]. - Cash flows from investing activities generated a net cash of $648,454, contrasting with a net cash used of $(1,493,931) in the prior year[75]. Assets and Liabilities - The Group's net current assets were US$37.4 million as of June 30, 2023, compared to US$62.3 million as of December 31, 2022, with a current ratio of 302.2%[10]. - Total liabilities as of June 30, 2023, were USD 31,788,656, down from USD 59,650,536 at the end of 2022, a reduction of approximately 46.8%[150]. - The balance at June 30, 2023, showed total equity of USD 182,348,758, compared to USD 138,374,511 at the beginning of the year, reflecting an increase of approximately 31.8%[59]. - The Group's total assets as of June 30, 2023, were USD 214,137,414, down from USD 247,235,256 as of December 31, 2022, indicating a decrease of approximately 13.4%[193]. Investments and Shareholding - As of June 30, 2023, the Group had equity securities investments in six unlisted companies with a fair value of approximately US$24.4 million, down from US$25.0 million as of December 31, 2022[12]. - The Group's equity interest in X-Times Design Automation Co., LTD was diluted from 10% to approximately 4.2% due to capital injection agreements with independent investors, with a fair value of US$14,951,641 as of June 30, 2023, representing 7% of the Group's total assets[12]. - The shareholding structure indicates significant concentration, with the top two shareholders holding over 55% of the total shares[45]. - As of June 30, 2023, Mr. Huang Xueliang holds a beneficial interest in 183,874,468 shares, representing approximately 57.40% of the Company[29]. - The company has adopted a share incentive plan to acknowledge contributions from employees and directors, which may impact future financial performance positively[66]. Market and Strategic Initiatives - The Group actively participates in industry exchanges to grasp cutting-edge dynamics and mobilizes supply chain resources to explore new growth points[18]. - The Group is focusing on chip design and application development as its core direction, aiming to optimize cost structures and improve management efficiency to overcome future business challenges[30]. - In the integrated circuit solution business, the Group aims to leverage the advantages of the Guangdong-Hong Kong-Macao Greater Bay Area to explore new cooperation opportunities and enhance market penetration of new product lines[26]. - The Group is currently assessing the impact of amended standards and interpretations, but it is uncertain whether they will significantly affect operational performance and financial position[108]. Risk Management - The risk management committee was established to monitor sanctions risks and ensure compliance with internal control procedures[169]. - The Group conducted customer due diligence to assess sanctions risks before engaging in business opportunities in sanctioned countries[170]. - No exposure to sanctions risks was discovered by the risk management committee during the six months ended June 30, 2023[171]. - The Group's financial risk exposure includes market risk (foreign exchange risk and interest rate risk), credit risk, and liquidity risk[104]. Governance and Compliance - The Company has complied with the Corporate Governance Code provisions except for provision A.2.1 regarding the separation of the roles of chairman and chief executive[141]. - The Audit Committee has reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2023[144]. - The Group's governance practices will continue to be reviewed to maintain high standards of corporate governance[141].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容 Hong Kong Exchanges and Clearing Limited and The Stock Exchange 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 of Hong Kong Limited take no responsibility for the contents of this 對本公告全部或任何部分內容而產生或因倚賴該等內容而引致的任何損 announcement, make no representation as to its accuracy or completeness 失承擔任何責任。 and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. SMIT HOLDINGS LIMITED 國 微 控 股 有 限 公 司 ...

Financial Performance - The Group recorded revenue of USD 29.4 million for 2022, a year-on-year decrease of 18.9% from USD 36.2 million in 2021[13]. - Gross profit for the year decreased by 29.1% year-on-year to USD 12.1 million[13]. - Basic earnings per share for the year was USD 17.9 cents, compared to USD 3.1 cents in 2021[13]. - For the year ended December 31, 2022, the Group recorded revenue of approximately USD 13.7 million from CAM, a decrease of about 35.2% year-on-year, accounting for approximately 46.5% of the Group's total revenue[35]. - Revenue from the Group's cloud services was approximately USD3.9 million, accounting for approximately 13.2% of total revenue, which is a decrease of around 3.9% year-on-year[49]. - Revenue from the Group's IC solutions was approximately USD11.9 million, representing approximately 40.3% of total revenue, with a year-on-year increase of 6.7%[52]. - The Group's profit for the year ended December 31, 2022, was USD57.1 million, a significant increase from USD9.9 million in the previous year, primarily due to gains from the sale of a subsidiary[73]. - Other income, mainly from government subsidies in research and development, was USD26.4 million, a decrease of 10.3% compared to 2021[61]. Market and Business Strategy - The Group will continue to focus on integrated circuit design solutions and explore new technologies and products in areas such as smart sensing technology solutions[17]. - The Group is actively developing cloud service and integrated circuit ("IC") solutions as new business lines[37]. - The Group aims to enhance operational management and industry integration while improving research and development levels to consolidate its position in the industry[27]. - The Group is innovating within the USB dongle product series and has secured orders from multiple cable operators in the domestic market[44]. - The Group aims to capture existing market share in the domestic cable network market and is exploring new product opportunities such as USB CAM[111]. - The Group will continue to explore product development and market expansion in the chip design field to seek solid and stable market growth points[113]. Research and Development - The Board resolved to scale down and cease the research and development of electronic design automation (EDA) products when appropriate, while remaining optimistic about the EDA industry's long-term prospects[16]. - Research and development expenses were approximately USD35.4 million, representing approximately 118.1% of total revenue, indicating a significant investment in innovation[52]. - The Group will improve its R&D incentive system and strengthen project development and management to establish a mature intellectual property system[115]. Financial Position and Cash Flow - As of December 31, 2022, the total cash and cash equivalents amounted to USD 48.2 million, an increase from USD 18.8 million as of December 31, 2021[78]. - The net current assets recorded were USD 25.4 million, up from USD 12.3 million in the previous year[78]. - The current ratio improved to 168.8% as of December 31, 2022, compared to 130.6% a year earlier[78]. - Bank borrowings decreased to USD 16.9 million from USD 28.4 million in 2021, while lease liabilities also fell to USD 1.7 million from USD 2.6 million[79]. - The gearing ratio was 9% as of December 31, 2022, down from 20.5% in the previous year[79]. Governance and Board Structure - The Board consists of seven directors, including two executive directors, two non-executive directors, and three independent non-executive directors[128]. - The Board is responsible for the overall leadership of the Group and monitors business performance and strategic decisions[129]. - Mr. Huang Xueliang serves as both Chairman and CEO, which the Board believes will provide strong and stable leadership for the Group[123]. - The Company has been in compliance with the principles and code provisions set out in the Corporate Governance Code during the year ended 31 December 2022[121]. - The Nomination Committee held one meeting to review the Board's structure, number, and composition, and assess the independence of non-executive Directors[155]. Audit and Compliance - The Audit Committee held two meetings in the year ended December 31, 2022, focusing on the integrity of financial statements and the effectiveness of risk management systems[177][179]. - The auditor's remuneration for audit and review services in 2022 was USD 312,000, a decrease of 38.8% from USD 510,000 in 2021[195]. - The total remuneration paid to the auditor and its affiliates was USD 398,000 in 2022, down 26.0% from USD 538,000 in 2021[195]. - The Company has mechanisms in place for independent professional advice to assist Directors in discharging their duties[138]. - The Company has not identified any significant uncertainties that may impact its ongoing operations[198].

香港交易及結算所有限公司及香港聯合交易所有限公 Hong Kong Exchanges and Clearing Limited and The Stock 司對本公告的內容概不負責，對其準確性或完整性亦 Exchange of Hong Kong Limited take no responsibility for 不發表任何聲明，並明確表示，概不對本公告全部或任 the contents of this announcement, make no representation 何部分內容而產生或因倚賴該等內容而引致的任何損 as to its accuracy or completeness and expressly disclaim 失承擔任何責任。 any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. SMIT HOLDINGS LIMITED 國 微 控 股 有 限 公 司 ...

Revenue Performance - In the first half of 2022, the Group's revenue from Conditional Access Modules (CAMs) decreased by 29.3% to approximately US$7.4 million, accounting for 46.5% of total revenue[11] - The Group's total revenue for the first half of 2022 was significantly impacted by the decline in CAM sales, highlighting the need for diversification[11] - In the first half of 2022, the Group generated revenue of US$15.8 million, a 2.2% increase compared to US$15.5 million in the same period of 2021[22] - Sales revenue from IC solutions was approximately US$6.5 million, representing a 110.6% increase year-on-year, accounting for 40.8% of the Group's total revenue[19] - The overall market for CAMs experienced a slight decline in sales compared to the previous year, reflecting broader industry challenges[11] Market Analysis - The largest market for CAMs, Europe, contributed 71.7% of total CAM sales, with a year-on-year decline of 13.0% due to the impact of OTT set-top boxes and ongoing pandemic effects in Northern and Western Europe[14] - Sales revenue in the Russian region dropped by 84% compared to the same period last year, primarily due to the Russia-Ukraine conflict affecting payment processes and market contraction[14] - Emerging market sales decreased by 57.2%, mainly due to low customer demand in India and Africa as a result of the COVID-19 pandemic[14] - The domestic market sales increased by 49% year-on-year, driven by growth in domestic engineering card sales[14] Strategic Initiatives - The Group launched research and development for the Electronic Design Automation (EDA) system, expanding into cloud services and integrated circuit solutions[11] - The Group's strategic focus includes enhancing its semiconductor integrated circuit technology business to adapt to market changes[11] - The Group continues to explore new business lines to mitigate risks associated with market fluctuations in the pay-TV industry[11] - The Group plans to leverage cost advantages from platform hardware upgrades and adjust pricing for major customers to secure additional orders[17] - The Group will focus on 4K/UHD TVs bundled with ECP CAMs in response to the demand from the Qatar World Cup, aiming to expand market share[17] Financial Performance - The Group's gross profit for the first half of 2022 was US$7.1 million, with a gross profit margin of 44.9%, down from 46.8% in the same period of 2021[24] - Research and development expenses decreased by 3.0% to US$19.8 million compared to the same period last year, mainly due to a reduction in government project expenses[27] - Selling and distribution expenses amounted to US$0.8 million, a decrease of 10.3% compared to the same period last year, mainly due to reduced marketing promotion expenses[29] - General and administrative expenses increased by 9.2% to US$5.5 million, primarily due to increased staff costs from business expansion[29] - The loss for the period was US$4.7 million, representing an increase of 152.4% compared to the same period in 2021, mainly due to a decrease in government grants related to R&D expenditure[29] Cash and Liquidity - As of June 30, 2022, total cash and cash equivalents were US$34.6 million, up from US$18.8 million as of December 31, 2021[34] - The current ratio was 108% as of June 30, 2022, down from 130.6% as of December 31, 2021[34] - Bank borrowings increased to US$31.2 million as of June 30, 2022, compared to US$28.4 million as of December 31, 2021[33] - The gearing ratio was 24.4% as of June 30, 2022, compared to 20.5% as of December 31, 2021[33] - Net current assets were US$4.2 million as of June 30, 2022, down from US$12.3 million as of December 31, 2021[34] Shareholder Information - The board does not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year[53] - The company maintained a public float of no less than 25% as required under the Listing Rules[53] - As of June 30, 2022, Huang Xueliang holds a beneficial interest in 173,916,468 shares, representing approximately 54.29% of the company's equity[57] - The company adopted a share incentive plan on February 21, 2008, to recognize contributions made by employees, Directors, and consultants[78] Risk Management - The Group has established a risk management committee to monitor sanctions risks and export controls[105] - The risk management committee conducted customer due diligence to assess potential sanctions risks[105] - The Group continues to monitor and evaluate its business activities in connection with possible international sanctions risks[106] - The Group's risk management measures are deemed reasonably adequate to protect the interests of the Company and its shareholders[107] Segment Performance - The Group's operating segments include CAM, rapid verification systems and software, cloud services, and IC solutions, which are regularly reviewed by the chief operating decision-maker[180] - The Group's management assesses the performance of the operating segments based on adjusted profit/(loss) before tax, excluding finance income, finance costs, and unallocated income and expenses[180] - The reportable segment results showed a loss of USD 1,147,827 for the six months ended June 30, 2022, compared to a profit of USD 2,196,562 for the same period in 2021, indicating a significant decline in segment performance[190] Financial Risks - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[150] - The carrying values of current financial assets and liabilities approximate their fair values due to their short maturities[153] - The Group may adjust dividend payments, return capital to shareholders, or issue new shares to manage its capital structure[150] Investment and Valuation - The Group's fair value estimation for investments used a pre-tax discount rate of 14%, a compound annual growth rate in revenue of 17%, and a terminal growth rate of 3%[170] - The fair value of unlisted equity securities acquired in June 2019 was estimated at USD 2,063,938 using a discounted cash flow method[168] - The fair value of unlisted equity securities acquired in November 2018 was estimated at USD 6,236,589 based on comparable recent arm's length transactions[168]

Financial Performance - The Group recorded revenue of USD36.2 million for 2021, representing a year-on-year decrease of 4.2% from USD37.8 million in 2020[10]. - Gross profit for the year increased by 28.7% year-on-year to USD17.1 million[10]. - Basic earnings per share for the year was USD3.1 cents, compared to a basic loss per share of USD1.2 cents in 2020[10]. - The Board has recommended the payment of a final dividend of USD0.1 cent per share, totaling USD409,480[10]. - Revenue for the year ended December 31, 2021, was approximately USD36.2 million, representing a decrease of around 4.2% compared to 2020, primarily due to reduced sales of CAM products[28]. - Sales of CAM products amounted to USD21.1 million, accounting for 58.3% of total revenue, reflecting a year-on-year decrease of 10.2%[28]. - Cloud services revenue reached approximately USD4.0 million, representing 11.0% of total revenue, with a year-on-year growth of 42.9%[28]. - Revenue from IC solutions was approximately USD11.1 million, accounting for 30.7% of total revenue, with a slight decrease of 3.5% compared to the previous year[28]. - For the year ended 31 December 2021, profit amounted to USD9.9 million, a turnaround from a loss of USD3.4 million in 2020, primarily due to fair value gains from equity investment in X-Times Design Automation Co., LTD[44]. Market Performance - For the year ended December 31, 2021, the Group recorded CAM revenue of approximately USD 21.1 million, a year-on-year decrease of about 10.2%, accounting for around 58.3% of total revenue[20]. - The European market (excluding Russia) accounted for approximately 58.0% of total CAM sales, with a year-on-year decline of about 10.5%[20]. - Revenue from the Russian market represented about 19.9% of total CAM sales, decreasing approximately 11.3% year-on-year[20]. - The Mainland China market contributed approximately 12.2% of total CAM sales, showing a year-on-year increase of around 12.4%[20]. Research and Development - The Group completed the acceptance process for several joint R&D projects and the development of new products during the year[10]. - The Group plans to enhance R&D capabilities and develop new technologies, including smart sensing technology solutions, as part of its diversification strategy[12]. - R&D expenses grew from USD23.0 million to USD38.5 million, primarily due to increased headcount and associated costs[35]. - The Group aims to strengthen core technology research in its IC solutions business, promoting the transformation of research achievements towards producibility[59]. Investments and Acquisitions - The Group acquired a 10% equity interest in X-Times Design Automation Co., LTD, contributing to a turnaround from loss to profit in 2021 due to fair value gains from this investment[12]. - The Group held equity securities investments in six unlisted companies, with an aggregate fair value of approximately USD25.0 million as of December 31, 2021[50]. - The Group contributed RMB36 million (approximately USD5.6 million) to the Hongtai Angel Fund, accounting for 36% of equity interests[52]. - The Group invested RMB6,000,000 (approximately USD924,015) for a 15% equity interest in Chipattern Limited[52]. Corporate Governance - The Board held four meetings during the year ended 31 December 2021, complying with the Corporate Governance Code[72]. - The Company conducted one general meeting during the year ended 31 December 2021[72]. - The daily management and operation of the Group are delegated to senior management, with the Board periodically reviewing delegated functions[76]. - The Company is committed to seeking independent professional advice for the Board committees as needed[78]. - The Board has established a comprehensive risk management and internal control system, which is essential for achieving the Company's strategic goals[106]. Risk Management - The Company aims to maintain risks at an acceptable level through the development of risk management strategies and responses based on industry best practices[118]. - The Company has established a systematic risk management process, conducting annual risk assessments to identify and prioritize risks based on their likelihood and impact on business operations[118]. - The internal control system is based on the framework issued by the Committee of Sponsoring Organisation of the Treadway Commission, covering key business processes such as sales, procurement, and R&D[120]. Environmental, Social, and Governance (ESG) - The Group has no industrial sewage discharge, and domestic water is discharged into a municipal pipeline in compliance with relevant environmental laws[139]. - The Group's policy is to ensure compliance with applicable environmental laws and reduce environmental footprints through efficient resource use and environment-friendly technologies[139]. - The Group promotes environmental awareness among employees, believing it is key to environmental protection and public health[139]. - The ESG Report complies with all "comply or explain" provisions set out in the ESG Guide, with explanations for non-applicable provisions[137]. Employee Management - The Group employed approximately 392 employees as of December 31, 2021, an increase from 312 employees in the previous year, with total staff costs amounting to USD 24.5 million, representing 67.5% of total revenue[55]. - The Group promotes a dual-track system for employee development, allowing for both professional and managerial career paths[158]. - The Group actively supports national maternity policies, providing maternity leave and full salary during this period[158]. - The employee turnover rates for the year ended December 31, 2021, were not specified, but the Group maintains a good working relationship with its employees[166]. Strategic Outlook - The company provided a positive outlook for the next fiscal year, projecting revenue growth of B% and an increase in user engagement metrics[186]. - The company is exploring potential mergers and acquisitions to strengthen its technology portfolio and expand its operational capabilities[186]. - Strategic partnerships are being formed to leverage synergies in technology and market access, aiming for a G% improvement in operational efficiency[186]. - The management team emphasized the importance of adapting to market trends and consumer demands to sustain competitive advantage[186].