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通告之內容概不負責，對其準確性或完 整性亦無發表任何聲明，並明確表示，概不對因本公告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。 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） 有關2022年度業績公告的澄清公告 茲提述深圳市元征科技股份有限公司（「本公司」）日期為2023年3月29日有關截至2022年12月31日止年 度之年度業績公告（「業績公告」）。 由於在所述公告的英文版中發現一處文書錯誤，董事會謹此澄清第18頁「SECTION III. NOTES TO OTHER MATERIAL EVENTS；2. Audit of financial statements for the reporting period by the audit committee」的第一句中，應為2022年而非2021年，具體如下： 「The 2022 audited financial statements is r ...

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文件的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本文件全部或任何部分內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 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） 2022年度業績公告 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 2022年12月31日止年度按照中國企業會計準則編製之經審核綜合業績如下： 一. 財務資料 （除特別註明外，金額單位為人民幣元） 合併資產負債表 附註 2022年 2021年 流動資產： 貨幣資金 525,484,149.23 415,351,929.70 交易性金融資產 23,576.88 37,808.52 ...

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]

Financial Performance - The company's operating revenue for the first half of 2020 was RMB 390,758,000, down 7.9% from RMB 424,066,000 in the same period of 2019[8] - The net profit attributable to the parent company for the first half of 2020 was a loss of RMB 25,979,000, compared to a profit of RMB 38,764,000 in the first half of 2019[8] - The basic earnings per share for the first half of 2020 was RMB -0.060, compared to RMB 0.108 in the same period of 2019[8] - The company reported a significant decrease in operating profit, resulting in an operating loss of RMB 24,960,000 for the first half of 2020, compared to an operating profit of RMB 40,552,000 in the same period of 2019[8] - The company's sales revenue for the first half of 2020 decreased by 7.9% year-on-year to 390 million RMB, with domestic market sales increasing by 3.1% to 220 million RMB, while export sales dropped by 19.2% to 150 million RMB[40] - The gross profit margin slightly decreased by 1.1 percentage points to 44.2% due to a decline in the proportion of higher-margin overseas business revenue[40] - The company's sales revenue decreased by 7.9% compared to the same period last year, primarily due to a decline in overseas business revenue[54] Assets and Liabilities - As of June 30, 2020, the company's total assets amounted to RMB 1,510,813,000, a decrease of 7.6% from RMB 1,634,681,000 as of December 31, 2019[4] - The company's current assets totaled RMB 889,713,000, a decrease of 10.0% from RMB 985,020,000 at the end of 2019[4] - The total liabilities of the company as of June 30, 2020, were RMB 764,197,000, down 11.4% from RMB 862,160,000 at the end of 2019[6] - Total assets decreased by 8% to 1,511 million RMB, while total liabilities decreased by 11% to 764 million RMB, resulting in a leverage ratio of 1.02[56] Research and Development - Research and development expenses increased significantly to RMB 102,291,000, up 58.5% from RMB 64,604,000 in the previous year[8] - Research and development expenses increased by 38 million RMB, contributing to a total profit decrease of 65 million RMB during the first half of the year[52][54] - The company aims to enhance its core competitive advantages through continuous R&D investment and innovation-driven development[45] Inventory and Accounts Receivable - The company's inventory as of June 30, 2020, was RMB 176,147,000, an increase of 4.3% from RMB 167,851,000 at the end of 2019[4] - Accounts receivable at the end of the period amounted to 260.218 million RMB, with a provision for bad debts of 70.888 million RMB[18] - Inventory at the end of the period was 176.147 million RMB, an increase from 167.851 million RMB at the beginning of the year[24] Business Development and Strategy - The company launched a new generation of high-end diagnostic equipment, Pad V, which has received widespread customer recognition for its advanced diagnostic capabilities[41] - The diagnostic software business saw a revenue increase of 35% year-on-year, aided by the successful promotion of smart pricing and software granularity models[43] - The company plans to expand its new business segments and improve software sales and upgrades to boost diagnostic software revenue[48] - The company is focusing on global expansion to increase the proportion of overseas market revenue and market share[49] Shareholder Information - The company did not declare an interim dividend for the period ending June 30, 2020[32] - The top five customers contributed approximately 91 million RMB, accounting for about 24% of total revenue for the year[67] - Liu Xin holds a 60.00% stake in Shenzhen Langqu Technology Development Co., which owns approximately 23.39% of the company's issued domestic shares[72] - Liu Jun holds a 40.00% stake in Shenzhen Langqu, which also owns about 23.39% of the company's issued domestic shares[73] - As of June 30, 2020, no directors or key executives held any significant interests in major contracts with the company or its subsidiaries[76] Cash Flow - The company generated a net cash inflow of 33 million RMB from operating activities during the reporting period[58] - Investment activities resulted in a net cash outflow of 70 million RMB, primarily for the construction of facilities and equipment[59] Corporate Governance - The report will be published on the company's website and the Hong Kong Stock Exchange website, and will be sent to shareholders at an appropriate time[77] - The board of directors includes Liu Xin as the chairman, Liu Jun, Huang Zhaohuan, Jiang Shiwen, Peng Jian, Zhang Yan, Liu Yuan, and Ning Bo[78]

Financial Performance - In 2019, the company's operating revenue and gross profit decreased by 10% and 5% respectively due to the decline in passenger car sales, which dropped by 9.6% year-on-year[13]. - The company reported a post-tax loss of approximately 137 million RMB, a change of about 196 million RMB compared to the previous year[23]. - The total cash inflow for the year was 151 million RMB, with total monetary funds at the end of the period amounting to 470 million RMB[27]. - The company's total liabilities were 862 million RMB, with total assets of 1.635 billion RMB, resulting in a leverage ratio of 1.12[28]. - The revenue from the top five customers amounted to approximately 209 million RMB, accounting for about 23% of total revenue for the year[29]. - The company reported a distributable profit of approximately RMB 104 million for the year ending December 31, 2019[180]. Market Trends - The total vehicle sales in China for 2019 were 21.444 million units, a year-on-year decrease of 9.6%[10]. - The global vehicle sales in 2019 were approximately 90.32 million units, reflecting a year-on-year decline of 3%[10]. Research and Development - The company has a significant R&D presence with teams in the US, Germany, Japan, South Korea, and Latin America, holding hundreds of patents[5]. - The company is undergoing a transformation phase in product structure, business model, and competitive strategy, leading to increased R&D expenses and one-time credit losses[13]. - The company has applied for a total of 325 blockchain-related invention patents, ranking sixth globally, with 191 patents related to automotive applications[22]. - The company collected approximately 192 million vehicle diagnostic reports in the year, representing a 74.5% increase compared to the same period last year[19]. - As of December 31, 2019, the cumulative collection of repair diagnostic reports reached 470 million, a 70% increase from the end of the previous year[19]. Product Development - The company launched the strategic new product SmartLink, which integrates multi-brand diagnostic equipment and provides online diagnostic services[16]. - The new generation of comprehensive diagnostic equipment, Pad V, was fully promoted in both domestic and overseas high-end markets[16]. - The company aims to integrate automotive diagnostic products with remote diagnostic platforms to create a comprehensive high-end solution[36]. - The company plans to leverage 5G, big data, and blockchain technologies to enhance its business model and explore innovative service models[31]. - The company is actively expanding into new business sectors and optimizing software sales to enhance global revenue, particularly in overseas markets[35]. Corporate Governance - The company maintains high corporate governance standards and continuously reviews and improves its governance and internal control practices[60]. - The board of directors consists of eight members, including the chairman, three executive directors, one non-executive director, and three independent non-executive directors[63]. - The board held a total of nine meetings during the year to discuss and formulate the overall strategy and monitor the operational and financial performance of the group[65]. - The audit committee reviewed the interim report and annual report during the year, ensuring compliance with financial reporting and internal control standards[75]. - The remuneration committee did not hold any meetings during the year ending December 31, 2019, and is responsible for reviewing and determining the compensation for directors and senior management[80]. - The nomination committee also did not hold any meetings during the year and is tasked with identifying and nominating suitable candidates for director positions[81]. - The company encourages continuous professional development for all directors through seminars and training materials related to corporate governance and regulatory developments[70]. - The company is in discussions with relevant insurance companies to arrange appropriate insurance coverage for directors against potential legal actions[69]. - The board has delegated authority to the management team, consisting of executive directors and senior management, to implement strategies adopted by the board and manage daily operations[73]. - The company has established three committees under the board: the audit committee, remuneration committee, and nomination committee, each with specific responsibilities[74]. - The independent non-executive directors have confirmed their independence and lack of any significant relationships with the management, ensuring unbiased judgment[64]. - The company reported an audit fee of approximately RMB 760,000 for the year ended December 31, 2019, with no non-audit fees incurred[87]. - The board is responsible for internal controls and reviews their effectiveness at least annually[89]. - The company has established a robust internal control system to ensure timely and accurate disclosure of information to shareholders[100]. - The board is committed to maintaining high corporate governance standards and will take necessary measures to comply with the rules set by the stock exchange[109]. Environmental, Social, and Governance (ESG) - The company emphasizes the importance of environmental, social, and governance (ESG) performance for sustainable development[112]. - The company implemented multiple energy-saving measures during the reporting period, resulting in a total electricity consumption of 3,800,000 kWh in 2019[119]. - The total water consumption for the year 2019 was approximately 30,000 tons, with no significant water source issues identified[119]. - The company used about 420 tons of packaging materials in 2019, averaging 0.425 kg of packaging material per 1,000 yuan in sales[119]. - The company actively promotes recycling initiatives, including the recycling of glass, cardboard, and batteries, to minimize waste[118]. - The company has established a clear workflow to ensure compliance with labor regulations and promote employee diversity[135]. - The company aims to enhance operational efficiency to reduce resource usage and regularly reports performance to senior management[117]. Workforce and Employee Relations - The total number of employees as of December 31, 2019, was 1,049, with a gender breakdown of 753 males and 296 females[125]. - Employee training hours totaled 60,588 in 2019, with an average of 57.76 hours per employee[147]. - The company experienced a workforce adjustment in 2019, reducing production staff by 28, while hiring 64 management personnel[137]. - There were no work-related fatalities reported in 2019, and five employees reported work-related injuries, averaging 33 days lost per case[140][141]. Supplier Management - The total number of suppliers is approximately 300, with over 95% sourced domestically, which helps reduce logistics costs[158]. - The company has a comprehensive supplier qualification and management process, ensuring suppliers meet various criteria before being added to the supplier list[154]. - The company has strict approval authority for procurement, with different thresholds requiring different levels of management approval[157]. - The company did not receive any major complaints from customers regarding product quality or safety in 2019[162]. Shareholder Information - The board does not recommend the payment of a final dividend for the year[181]. - As of December 31, 2019, Mr. Liu Xin holds 79,200,000 shares, representing 31.23% of the company's issued domestic shares and approximately 17.58% of the total issued shares[191]. - Mr. Liu Jun also holds 59,318,400 shares, which accounts for 23.39% of the company's issued domestic shares and approximately 13.17% of the total issued shares[191]. - The term for directors and supervisors is three years, with the possibility of reappointment or reelection[186]. - The company has no significant contracts in which directors have a direct or indirect substantial interest as of the end of the fiscal year[200]. - The company has established service contracts with all directors and supervisors, with a term of three years[189]. - No other individuals, apart from the directors, hold any personal, family, company, or other interests in the company's shares or related securities as of December 31, 2019[198]. - Mr. Liu Xin's interests in the company include controlled company interests amounting to 59,318,400 shares, which is 23.39% of the issued domestic shares[192]. - The company has a total of 11,938,200 shares held through another controlled company, representing 4.71% of the issued domestic shares[192]. - The company has no disclosures of any major contracts with directors or supervisors that remain in effect beyond the fiscal year[200]. - The board of directors consists of both executive and non-executive members, ensuring a diverse governance structure[189]. Compliance and Legal Matters - The company emphasizes the protection of intellectual property through contractual agreements and confidentiality agreements with employees[166]. - There were no corruption lawsuits or violations of anti-money laundering laws reported during the reporting period[172]. - The company is committed to community investment and encourages employees to contribute to local communities[174].

Financial Performance - The company's operating revenue for the six months ended June 30, 2019, was RMB 424,066 thousand, a slight increase of 0.05% compared to RMB 422,856 thousand for the same period in 2018[5] - The net profit attributable to the parent company for the same period was RMB 38,764 thousand, representing a significant increase of 86.8% from RMB 20,762 thousand in the previous year[5] - The gross profit margin for the first half of 2019 was approximately 45.5%, compared to 43.5% in the same period last year, indicating improved operational efficiency[5] - The company reported a total revenue of approximately 420 million RMB for the first half of 2019, with a net profit of about 39 million RMB, representing a year-on-year increase of 19 million RMB[42] - The basic earnings per share for the current year was 0.108 RMB, compared to 0.055 RMB for the previous year, reflecting a substantial increase[29] Assets and Liabilities - The company's total assets as of June 30, 2019, amounted to RMB 1,612,022 thousand, an increase of 4.5% from RMB 1,542,793 thousand at the end of 2018[3] - The total current assets increased to RMB 940,891 thousand, up 5.6% from RMB 890,607 thousand at the end of 2018[2] - The company's inventory at the end of the period was 172,842,000 RMB, compared to 121,915,000 RMB at the beginning of the year, indicating a significant increase[18] - The accounts payable at the end of the period was 153,128,000 RMB, up from 112,375,000 RMB at the beginning of the year[20] - Total liabilities increased by 14% to RMB 655 million, primarily due to an increase in accounts payable[46] Cash Flow - The net cash inflow from operating activities was RMB 112 million, mainly from sales revenue, while cash outflow was related to production and operational expenses[48] - The company reported a net cash outflow of RMB 90 million from investing activities, primarily for the construction of facilities and equipment, funded mainly from internal resources[49] - Cash decreased by approximately RMB 42 million by the end of the reporting period[47] - The company’s financing activities resulted in a net cash outflow of RMB 64 million, primarily for repaying bank loans and interest[50] Research and Development - The company's research and development expenses for the first half of 2019 were RMB 64,604 thousand, indicating a focus on innovation and technology development[5] - The company has maintained a stable strategy focused on becoming a global core enterprise in the automotive Internet of Things, leveraging new technologies such as big data, AI, and blockchain[39] - The company plans to continue launching a series of new products and fully implement industry collaborations in the second half of the year to stabilize annual performance[42] Market and Customer Insights - The number of collected automotive repair data reports reached approximately 73 million, an increase of 21 million reports or 40% year-on-year[42] - The number of vehicles covered by diagnostic reports was about 20 million, with an increase of 9.92 million vehicles or 98% year-on-year[42] - The top five customers contributed approximately RMB 98 million in revenue, accounting for about 24% of total revenue, with the largest customer representing 8%[57] Management and Governance - The company has maintained a stable dividend policy, with dividends payable amounting to RMB 36,018 thousand, reflecting a commitment to returning value to shareholders[3] - The company plans to continue enhancing internal management and fostering a culture of innovation, quality, efficiency, professionalism, and competitiveness[45] - Liu Xin holds a 60.00% stake in Shenzhen Langqu Technology Development Co., which owns approximately 23.39% of the company's issued domestic shares[68] - Liu Jun holds a 40.00% stake in Shenzhen Langqu, which also owns about 23.39% of the company's issued domestic shares[69] - As of June 30, 2019, no directors or key executives held any personal, family, corporate, or other interests in the company's shares, bonds, or related shares[70] - There are no significant contracts in which the company's directors have a direct or indirect substantial interest as of the end of the fiscal year[72] Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[5] - The company has increased its investment in connected device market share and is focused on optimizing internal management and adjusting business structure[41] - The company has introduced a non-contact four-wheel alignment instrument, which has received high recognition and is expected to lead the industry towards Industry 4.0[39]

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].