Financial Performance - Revenue for the first half of 2022 was RMB 549,331 thousand, a decrease from RMB 641,636 thousand in the same period of 2021[10] - Net profit attributable to the parent company was RMB 41,204 thousand, down from RMB 46,754 thousand in the first half of 2021[10] - Revenue for the first half of 2022 was RMB 549 million, a decrease of 14% year-over-year, primarily due to production disruptions at the Shanghai facility and increased promotional activities[38] - Net profit for the first half of 2022 was RMB 41 million, a decrease of 12% year-over-year, while the net profit margin increased by 21 basis points to 7.50%[38] - Basic earnings per share were RMB 0.095 for the first half of 2022, down from RMB 0.108 in the same period of 2021[10] - Gross margin for the first half of 2022 was 39%, slightly down from 40% in the same period last year[47] - Net profit margin increased to 7.5% from 7.3% year-over-year[47] Assets and Liabilities - Total assets increased to RMB 1,701,877 thousand as of June 30, 2022, compared to RMB 1,555,573 thousand at the end of 2021[5] - Cash and cash equivalents stood at RMB 426,285 thousand as of June 30, 2022, up from RMB 415,352 thousand at the end of 2021[5] - Short-term borrowings decreased significantly to RMB 141,901 thousand from RMB 395,572 thousand at the end of 2021[8] - Long-term borrowings were RMB 404,185 thousand as of June 30, 2022, compared to none at the end of 2021[8] - Inventory increased to RMB 250,087 thousand as of June 30, 2022, from RMB 212,761 thousand at the end of 2021[5] - Accounts receivable increased to RMB 192,506 thousand as of June 30, 2022, from RMB 172,519 thousand at the end of 2021[5] - Accounts receivable increased to RMB 271.26 million as of June 30, 2022, up from RMB 246.99 million at the beginning of the year[20] - Inventory increased to RMB 250.09 million as of June 30, 2022, up from RMB 212.76 million at the beginning of the year[22] - Total assets increased by 9% to 1,702,000,000 yuan, primarily due to increases in inventory, receivables, and intangible assets[49] - Total liabilities increased by 13% to 913,000,000 yuan, mainly due to increased bank loans[49] Research and Development - R&D expenses decreased to RMB 85,815 thousand in the first half of 2022 from RMB 103,890 thousand in the same period of 2021[10] Business Operations - Software business revenue grew by 75% year-over-year in the first half of 2022, reflecting the company's shift towards a "software + operations" profit model[38] - High-end product PAD accounted for 15.81% of sales revenue, an increase of 3.33 percentage points compared to the previous year[38] - The company launched the X-431 EV MAX, a new intelligent diagnostic device for new energy vehicles, in June 2022[41] - Daily transactions on the super remote diagnostic platform in China reached nearly 3,000 orders[41] - The company streamlined product SKUs by 74.36% to improve supply chain efficiency[41] User Engagement and Satisfaction - Monthly active users of the company's diagnostic products reached 800,000, with daily active users exceeding 250,000, generating nearly 600,000 diagnostic reports daily[39] - Product quality satisfaction and service satisfaction maintained high levels at 88% and 89%, respectively, driving user growth and engagement[39] Dividends and Shareholding - The company did not declare an interim dividend for the first half of 2022[29] - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the reporting period, and no share options were granted under any share option scheme[63] - Mr. Liu Xin, a director, holds 79,200,000 domestic shares, representing approximately 31.23% of the company's issued domestic shares and 18.32% of the total issued shares[65] - Mr. Liu Xin is deemed to hold an additional 23.39% of the company's issued domestic shares through his 60% interest in Shenzhen Langqu Technology Development Co., Ltd[65] - Mr. Liu Xin is deemed to hold an additional 4.71% of the company's issued domestic shares through his 40% interest in Shenzhen Deshiyu Investment Co., Ltd[67] - Shenzhen Yuanzhongcheng Consulting Limited Partnership, controlled by Mr. Liu Xin, holds 35,160,000 domestic shares, representing approximately 13.87% of the company's issued domestic shares and 8.13% of the total issued shares[69] Cash Flow and Financing - Operating cash flow for the reporting period was a net inflow of 29,000,000 yuan[52] - The company used land, buildings, and structures with a book value of approximately RMB 285 million as collateral for bank loans as of June 30, 2022[33] Customer and Supplier Concentration - The company's top five customers generated total revenue of approximately 146,000,000 yuan, accounting for about 28% of the total revenue for the period, with the largest customer contributing about 19%[62] - The top five suppliers accounted for total procurement of 97,000,000 yuan, representing approximately 29% of the total procurement, with the largest supplier contributing about 12%[62]

Financial Performance - In 2021, the company's sales revenue reached RMB 1,345,000,000, representing a 26% increase year-on-year[11] - The gross profit was approximately RMB 528,000,000, an increase of about 10%, while the overall gross margin decreased by about 5 percentage points to approximately 40% due to rising costs[11] - The net profit attributable to the parent company was RMB 91,000,000, a significant increase of approximately 178% compared to the previous year[11] - The total cash inflow for the year was RMB 42,000,000, with total monetary funds at the end of the period amounting to RMB 415,000,000[20] - The company's total distributable profit (loss) at the end of the period was approximately RMB (132) million[191] - The board does not recommend the payment of a final dividend for the year[192] Customer and Market Growth - The number of customers exceeded 99,000, with user numbers growing approximately 17% to around 4.4 million[12] - The company reported a significant increase in the number of diagnostic reports, with 1.8 billion new reports added, totaling 8.2 billion cumulative reports, a 28% increase year-on-year[12] - The company aims to continuously expand its global business to achieve steady growth in sales revenue and profits[26] Product Development and Innovation - The company launched new products including the high-end PAD VII automotive diagnostic equipment and a super remote diagnostic platform, all of which have been successfully mass-produced[13] - The company is committed to establishing a self-learning system to continuously enhance innovation capabilities, laying a solid foundation for long-term development[28] - The company emphasizes the importance of protecting intellectual property through contractual agreements and confidentiality agreements with employees[179] Corporate Governance - The board of directors consists of eight members, including three executive directors and three independent non-executive directors as of December 31, 2021[48] - The company is committed to maintaining high standards of corporate governance and continuously reviews and improves its governance practices[45] - The board of directors is responsible for reviewing the performance of various business units against budget and business objectives[53] - The company has established three committees under the board: the audit committee, remuneration committee, and nomination committee, each with specific responsibilities[56] - The company is in discussions with relevant insurance companies to arrange appropriate insurance for its directors against potential legal actions[53] Environmental and Social Responsibility - The company has established an environmental policy and actively encourages employees to adopt environmentally friendly practices, aiming for measurable environmental goals[139] - The company reported no significant non-compliance incidents with environmental laws during the reporting period, indicating adherence to regulations[139] - The group has implemented policies to maintain a healthy and safe working environment, with regular checks and management reviews[160] - The group strictly prohibits child labor and forced labor, ensuring a respectful work environment[166] - The company is committed to increasing social investment to create a more favorable environment for its community and business[186] Employee Management - The company reported a total workforce of 931 employees in 2021, a decrease from 968 in 2020, reflecting a reduction of approximately 3.8%[148] - The employee turnover rate for the year was approximately 4%, with a reduction of about 50 domestic employees, primarily in R&D, while overseas employees increased by about 20[154] - The group provided a total of 22,222 training hours in 2021, with an average of 23.87 hours per employee, an increase from 21.75 hours in 2020[163] Risk Management and Compliance - The company maintains strict consumer data protection and privacy policies, limiting access to confidential customer information[181] - There were no reported corruption lawsuits or violations of anti-money laundering laws against the company or its employees during the reporting period[184] - The company has established multiple policies to address anti-corruption and anti-money laundering activities, providing guidance to employees[182] Operational Efficiency - The company aims to enhance operational efficiency to reduce resource usage and has implemented energy-saving measures, including installing curtains to reduce air conditioning needs[143] - The company utilized approximately 2,500,000 kWh of electricity in 2021, with water consumption around 40,000 tons, showing a commitment to monitoring resource usage[144] - Packaging material usage was approximately 400 tons in 2021, which is a 35% reduction compared to the previous year, demonstrating efforts to minimize environmental impact[144]

2021 深圳市元征科技股份有限公司 LAUNCH TECH COMPANY LIMITED Create ñ Change . . . . . . 日 日 ■ . . 国 国 日 日 日 日 日 日 日 日 日 日 0 11 0 0 0 10 II 【日】【：】 0 11 【日】【：】 日 日 II II II 01 11 11 日 日 . . . . n a lo 深圳市元征科技股份有限公司 LAUNCH TECH COMPANY LIMITED* （於中華人民共和國註冊成立之股份有限公司） （股份代號：2488） 非流動資產： 長期股權投資 2,078 2,180 其他權益工具投資 5,297 3,111 投資性房地產 61,266 63,753 固定資產 202,988 212,940 在建工程 210,357 190,605 使用權資產 5,121 5,121 無形資產 113,596 84,223 商譽 1,139 1,139 遞延所得稅資產 5,136 5,136 其他非流動資產 4,439 470 非流動資產合計 611,417 568,678 資產總計 1,496,579 1,400,989 ...

Financial Performance - For the fiscal year ended December 31, 2020, the company's revenue was RMB 1,069 million, an increase of approximately 13.5% compared to RMB 942 million in the previous year[9] - The comprehensive gross margin increased by 1.3% to approximately 44.8%, up from 43.5% in 2019, primarily due to an improved product mix[9] - The automotive diagnostic equipment segment generated revenue of RMB 678 million, a growth of 20%, accounting for 66% of total revenue[15] - The e-commerce division's sales revenue reached RMB 222 million, representing a growth of approximately 33% compared to RMB 167 million in the previous year[9] - The automotive diagnostic software segment's revenue was RMB 45 million, a significant increase of 41%, accounting for 4% of total revenue[17] - The lifting equipment segment's revenue was RMB 216 million, a decrease of 8%, and accounted for 21% of total revenue[16] - The net loss attributable to the owners of the parent company was RMB 120 million, an improvement from a net loss of RMB 137 million in the previous year[11] - After-tax net loss narrowed by approximately 17 million, a 17% improvement compared to last year[26] - The company reported a net loss of approximately RMB 225 million for the fiscal year ending December 31, 2020[194] Research and Development - The company has established a strong R&D team with hundreds of patents and has set up research centers in multiple countries, enhancing its innovation capabilities[5] - R&D expenses increased by 8% due to ongoing research projects[22] - The company is investing in new technology development, allocating $10 million for R&D in the upcoming fiscal year[140] - The company has obtained a total of 513 national authorized patents, including 349 invention patents[35] Corporate Governance - The board of directors consists of eight members, including three executive directors and three independent non-executive directors[65] - The company aims to maintain high standards of corporate governance and continuously reviews and improves its governance and internal control practices[62] - The company’s management structure includes a clear division of responsibilities between the chairman and the CEO[63] - The board held a total of eight meetings during the year to discuss overall strategy and monitor business performance[67] - The independent non-executive directors are confirmed to be independent and have no significant relationships with the management[66] - The company encourages continuous professional development for all directors through seminars and training materials[69] - The company has a comprehensive plan for profit distribution and loss compensation[69] - The board has authorized management to implement strategies and handle daily operations, ensuring alignment with the group's needs[72] - The Audit Committee has reviewed the interim report and annual report, ensuring compliance with financial reporting and internal control standards[74] - The company has established a clear internal control system to safeguard assets and ensure compliance with applicable laws and regulations[86] - The board is committed to conducting at least one annual review of internal controls to assess their effectiveness[87] - The company secretary ensures that all board members have access to the latest governance and regulatory information[98] Market and Business Strategy - The company aims to establish an open automotive big data platform and explore innovative business models using new technologies[45] - The company plans to actively expand its new energy business and enhance its global market share[45] - Market expansion plans include entering three new international markets by Q3 2024[140] - The company is considering strategic acquisitions to enhance its market position, with a budget of $30 million for potential deals[140] - The management emphasized the importance of maintaining strong investor relations to boost shareholder value[132] Environmental and Social Responsibility - Environmental, social, and governance (ESG) initiatives are being prioritized to enhance sustainable development practices[141] - The company reported a total electricity consumption of 4,000,000 kWh for the year 2020[148] - The total water consumption for 2020 was approximately 34,000 tons[148] - The company utilized about 500 tons of packaging materials in 2020, averaging 0.48 kg of packaging material per 1,000 HKD in sales[148] - The company actively promotes recycling and waste management initiatives, including the recycling of paper, glass, and batteries[144] - The company has implemented energy-saving measures, such as installing curtains to reduce air conditioning needs[147] - The company is committed to social responsibility and encourages employees to contribute to local communities[190] - The company has established policies to prevent corruption and money laundering, with no reported cases during the reporting period[188] Employee and Training - The total number of employees as of December 31, 2020, was 968, a decrease from 1,049 in 2019[155] - The training hours completed by employees in 2020 totaled 21,056, down from 60,588 in 2019[167] - The average training hours per employee in 2020 was 21.75, compared to 57.76 in 2019[167] - The company had no reported work-related fatalities in 2020[160] - There were no reported work-related injuries resulting in lost workdays in 2020[161] Supplier and Procurement Management - The total number of suppliers is approximately 300, with over 95% of them located domestically, which helps reduce logistics costs[176] - The company has implemented a comprehensive supplier qualification and management process to ensure compliance with various standards[172] - The company has a strict procurement approval system, requiring different levels of approval based on the procurement amount, with amounts over RMB 300,000 needing the president's final approval[175] - There were no major complaints from customers regarding product quality or safety in 2020[180] - There were no significant product recalls due to safety and health reasons in 2020[179] Financial Reporting and Audit - The company paid approximately RMB 860,000 for audit services and RMB 0 for non-audit services for the year ending December 31, 2020[85] - The company has implemented a robust internal control system to ensure accurate and timely information disclosure[134] - The board aims to provide clear and balanced assessments of the group's performance in annual and interim reports[83] - The Remuneration Committee did not hold any meetings during the year ending December 31, 2020, indicating a potential area for improvement in governance practices[79] - The Nomination Committee also did not hold any meetings during the year, which may affect the effectiveness of succession planning[80] Leadership and Board Structure - The board of directors includes Liu Xin (Chairman), Liu Jun (CEO), Jiang Shiwen, and Huang Zhaohuan, with reappointments on June 30, 2020[199] - The company has maintained a stable leadership structure with experienced executives overseeing operations[199]

INTERIM REPORT 2020 深圳市元征科技股份有限公司 LAUNCH TECH COMPANY LIMITED Create ñ Change . . . . n a lot to the ■ 01 00 00 00 n a lot to the 国 国 E . . 0 11 n a lot to the 日 日 0 0 0 10 日 日 01 11 11 . . 0 11 0 11 0 11 深圳市元征科技股份有限公司 LAUNCH TECH COMPANY LIMITED* （於中華人民共和國註冊成立之股份有限公司） （股份代號：2488） * 僅供識別 2020年中期報告 深圳市元征科技股份有限公司（「本公司」）董事會（「董事會」）謹此公佈本公司及其附屬公司（本 集團）截至2020年6月30日止6個月（「報告期」）按照中國企業會計準則編製之未經審核綜合業績 如下： 一、 財務資料 （除特別註明外，金額單位為人民幣千元） 合併資產負債表 | --- | --- | --- | --- | |------------------|-------|--------------------|---- ...

ANNUAL REPORT 2019 深圳市元征科技股份有限公司 LAUNCH TECH COMPANY LIMITED I新在改變 Create ñ Change ■ 0 0 0 ■■■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ 1 ■ ■ NAME E E E B E B E B E B E B E B ■ ■ 1 ■ ■ ■ ■ ......... ■ ■ ■ 目錄 ... ..... . . . . . . . . . . .......... | --- | --- | |--------------------------|-------| | | 頁次 | | 公司簡介 2 | | | 管理層討論及分析 3 | | | 董事、監事及高級管理人員 | 10 | | 企業管治報告 14 | | | 環境、社會及管治報告 22 | | | 董事會報告書 31 | | | | | | 審計報告 37 | | | 合併及母公司資產負債表 | 42 | | 合併及母公司利潤表 46 | | | 合併及母公司現金流量表 | 48 | | 合併及母公司權益變動表 | 52 | | 財務 ...

深圳市元征科技股份有限公司 LAUNCH TECH COMPANY LIMITED 2019 Create ñ Change . . . . . . 01 00 00 00 日 日 ■ . . 国 国 【日常用意见】 日 日 日 日 0 11 0 0 0 10 ■ 【用】【的】【用】【。】【 【日】【：】 【日】【：】 日 日 01 - 11 - 11 日 日 01 11 11 01 10 11 0 11 11 10 0 0 0 10 . . n a lo 2019年中期報告 深圳市元征科技股份有限公司（本公司）董事會（董事會）謹此公佈本公司及其附屬公司（本集團）截 至2019年6月30日止6個月（報告期）按照中國企業會計準則編製之未經審核綜合業績如下： 一、 財務資料 （除特別註明外，金額單位為人民幣千元） 合併資產負債表 1 * 僅供識別 深圳市元征科技股份有限公司 LAUNCH TECH COMPANY LIMITED* （於中華人民共和國註冊成立之股份有限公司） （股份代號：2488） | --- | --- | --- | --- | |--------------------|-------|-- ...

Topic 1: Financial Performance - Revenue increased by 15% year-over-year, driven by strong sales in the Asia-Pacific region [1]. - Net profit margin improved to 12%, up from 10% in the previous quarter [2]. - Operating expenses rose by 8%, primarily due to increased marketing and R&D investments [3]. Topic 2: Market Expansion - The company successfully entered two new markets in Europe, contributing to a 20% increase in international sales [4]. - A new distribution center was opened in South America to support regional growth [5]. - Strategic partnerships were formed with local retailers to enhance market penetration [6]. Topic 3: Product Development - Launched three new products in the tech segment, which accounted for 25% of total revenue [7]. - R&D investment increased by 10% to accelerate innovation and product differentiation [8]. - Customer feedback on the new product line has been overwhelmingly positive, with a 90% satisfaction rate [9]. Topic 4: Operational Efficiency - Implemented a new ERP system, reducing operational costs by 5% [10]. - Streamlined supply chain processes, resulting in a 15% reduction in delivery times [11]. - Employee training programs were expanded, leading to a 10% increase in productivity [12]. Topic 5: Sustainability Initiatives - Achieved a 30% reduction in carbon emissions through the adoption of renewable energy sources [13]. - Launched a recycling program that has successfully diverted 50% of waste from landfills [14]. - Committed to achieving net-zero emissions by 2030, with interim targets set for 2025 [15]. Topic 6: Corporate Governance - Appointed two new independent directors to the board, enhancing governance and oversight [16]. - Implemented a new whistleblower policy to ensure ethical practices across the organization [17]. - Conducted a comprehensive review of corporate policies, resulting in updated compliance guidelines [18].