[Chairman's Statement](index=5&type=section&id=%E4%B8%BB%E5%B8%AD%E5%A0%B1%E5%91%8A%E6%9B%B8) [Business Review and Financial Performance](index=5&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7%E8%88%87%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE) The Group achieved steady performance growth in H1 2024 amid a complex macroeconomic environment Key Financial Metrics | Metric | H1 2024 | H1 2023 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | HK$19,286.17 million | HK$16,960.78 million | +13.71% | | Gross Profit Margin | 3.34% | ~3.49% | -0.15pp | | Profit Attributable to Shareholders | HK$164.48 million | HK$164.48 million | +0.0036% | | Basic Earnings Per Share | HK 6.40 cents | - | Remained stable | Performance by Business Segment | Business Segment | Turnover (HK$ million) | Y-o-Y Change | Segment Profit (HK$ million) | Y-o-Y Change | | :--- | :--- | :--- | :--- | :--- | | ICT Consumer Products | 8,495.04 | +5.50% | 122.65 | -23.16% | | ICT Enterprise Products | 6,774.59 | +22.05% | 241.36 | +25.95% | | Other Businesses | 4,016.54 | +19.62% | 37.20 | +4.68% | - The company strategically applies advanced technologies like AI to enhance its digital intelligence capabilities and explores new growth drivers in areas such as cloud applications, the metaverse, security, and the low-altitude economy[40](index=40&type=chunk) [Business Outlook](index=7&type=section&id=%E5%B1%95%E6%9C%9B) The Group will focus on technology-driven, high-quality growth and ecosystem partnerships in H2 2024 - The H2 2024 operating principle is **"New Technology Traction, High-Quality Growth, and Good Ecosystem Partner"**, aiming for innovation-led development through AI and other technologies to expand new ecosystems[43](index=43&type=chunk) - The company anticipates that advancements in digital technologies like 5G, high-performance computing, and AI will create development opportunities by accelerating digital transformation across industries[43](index=43&type=chunk) [Management Discussion and Analysis](index=8&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Liquidity and Financial Resources](index=8&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The Group maintained a sound and stable financial and liquidity position during the review period Financial Position | Metric (as at June 30, 2024) | Amount (HK$ million) | | :--- | :--- | | Total Interest-bearing Borrowings | 2,629.74 | | Cash and Bank Balances | 3,036.18 | | Net Current Assets | 2,730.87 | | Net Gearing Ratio | 3.95 times | [Risk Management](index=8&type=section&id=%E5%8C%AF%E7%8E%87%E6%B3%A2%E5%8B%95%E9%A2%A8%E9%9A%AA%E5%8F%8A%E7%9B%B8%E9%97%9C%E5%B0%8D%E6%B2%96) The Group deems its foreign exchange risk to be minimal and has not engaged in any hedging arrangements - The Group considers its foreign exchange risk to be minimal and **has not used any currency borrowings or other hedging instruments** to hedge its foreign currency investments[47](index=47&type=chunk)[48](index=48&type=chunk) - As of June 30, 2024, the Group had **HK$2.18 billion in unrecovered endorsed and discounted bills receivable with recourse**, used to settle payables and raise cash[49](index=49&type=chunk) [Material Investments and Future Plans](index=10&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E4%BA%8B%E9%A0%85%E5%8F%8A%E5%87%BA%E5%94%AE%E9%99%84%E5%B1%AC%E5%85%AC%E5%8F%B8%E3%80%81%E8%81%AF%E7%87%9F%E5%85%AC%E5%8F%B8%E5%8F%8A%E5%90%88%E7%87%9F%E4%BC%81%E6%A5%AD) The Group had no material investments, acquisitions, or disposals during the period and has no such plans for the future - During the reporting period, the Group had **no material investments, acquisitions, or disposals**, nor any significant capital commitments or plans for future capital asset purchases[50](index=50&type=chunk)[51](index=51&type=chunk) [Human Resources and Dividend Policy](index=10&type=section&id=%E5%83%B1%E7%94%A8%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) The Group's employee count increased, and while no interim dividend is proposed, the 2023 final dividend was paid - The Group's total number of employees **increased from 1,408 to 1,552** year-over-year[53](index=53&type=chunk) - The Board **does not recommend an interim dividend** for the six months ended June 30, 2024; the 2023 final dividend of HK$0.05 per share, totaling approximately HK$128.53 million, was paid on June 21, 2024[54](index=54&type=chunk) [Other Information](index=11&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Corporate Governance](index=11&type=section&id=%E9%81%B5%E5%AE%88%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company complied with most Corporate Governance Code provisions, with a disclosed deviation in the combined Chairman and CEO role - The company has a deviation from the Corporate Governance Code: the roles of **Chairman and President (CEO) are held by the same individual**, Mr. Zhu Jianqiu, though the Board believes the current structure ensures a balance of power[56](index=56&type=chunk) - The company has established Audit, Remuneration, and Nomination Committees, and the Audit Committee has reviewed the unaudited interim results for the period[58](index=58&type=chunk)[60](index=60&type=chunk)[61](index=61&type=chunk) [Disclosure of Directors' and Shareholders' Interests](index=12&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B9%8B%E6%AC%8A%E7%9B%8A%E5%8F%8A%E7%9F%AD%E5%80%89) The report details share interests of directors and substantial shareholders, with Sichuan Changhong Electric Co, Ltd being the controlling shareholder Directors' Interests | Name of Director | Capacity | Number of Ordinary Shares (Long Position) | Approximate Percentage of Interest | | :--- | :--- | :--- | :--- | | Mr. Zhu Jianqiu | Beneficial Owner | 115,165,762 | 7.92% | | Mr. Zhao Qilin | Beneficial Owner | 750,000 | 0.05% | | Ms. Su Huiqing | Beneficial Owner | 34,589,636 | 2.38% | Substantial Shareholders' Interests | Name of Substantial Shareholder | Class of Shares | Number of Shares Held (Long Position) | Percentage of Interest | | :--- | :--- | :--- | :--- | | Sichuan Changhong Electric Co., Ltd. | Ordinary Shares | 874,650,000 | 60.13% | | Sichuan Changhong Electric Co., Ltd. | Preference Shares | 1,115,868,000 | 100.00% | | Sichuan Provincial Investment Group Co., Ltd. | Ordinary Shares | 83,009,340 | 5.70% | [Condensed Consolidated Interim Financial Statements and Notes](index=16&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E5%8F%8A%E9%99%84%E8%A8%BB) [Condensed Consolidated Financial Statements](index=16&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2024 Key Income Statement Items (HK$ '000) | | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 19,286,174 | 16,960,784 | | Gross Profit | 643,648 | 591,937 | | Profit Before Tax | 179,086 | 205,759 | | Profit for the Period | 164,484 | 164,478 | Key Statement of Financial Position Items (HK$ '000) | | As at June 30, 2024 | As at Dec 31, 2023 | | :--- | :--- | :--- | | Current Assets | 13,831,923 | 17,311,227 | | Current Liabilities | 11,101,053 | 14,586,457 | | Net Assets | 2,818,955 | 2,812,545 | | Total Equity | 2,818,955 | 2,812,545 | - **Net cash used in operating activities was HK$3.19 billion**, while investing and financing activities recorded net cash inflows of HK$3.05 billion and HK$105 million, respectively[73](index=73&type=chunk) [Notes to the Financial Statements](index=21&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) The notes explain the basis of preparation, key accounting policies, and provide detailed breakdowns of key financial items Note 3: Revenue by Product Category (HK$ '000) | Product Category | H1 2024 | H1 2023 | | :--- | :--- | :--- | | ICT Consumer Products | 8,495,043 | 8,052,248 | | ICT Enterprise Products | 6,774,592 | 5,550,778 | | Others | 4,016,539 | 3,357,758 | | **Total** | **19,286,174** | **16,960,784** | Note 4: Profit by Business Segment (HK$ '000) | Business Segment | H1 2024 | H1 2023 | | :--- | :--- | :--- | | ICT Consumer Products | 122,649 | 159,615 | | ICT Enterprise Products | 241,359 | 191,625 | | Others | 37,202 | 35,539 | | **Total** | **401,210** | **386,779** | - Note 6: Certain subsidiaries of the Group in China are eligible for a **reduced enterprise income tax rate of 15%** as they are recognized as enterprises in the 'Catalogue of Encouraged Industries in the Western Region'[91](index=91&type=chunk) - Note 7: Diluted earnings per share is the same as basic earnings per share at **HK 6.40 cents**, as there were no potential dilutive shares during the period[92](index=92&type=chunk) - Note 10 & 11: As of the period end, the Group's total bank borrowings amounted to **HK$2.63 billion**, all of which were unsecured, and the Board does not recommend an interim dividend[97](index=97&type=chunk)[98](index=98&type=chunk)

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 之 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示 概 不 就 因 本 公 告 全 部 或 任 何 部 份 內 容 而 產 生 或 因 依 賴 該 等 內 容 而 引 致 之 任 何 損 失 承 擔 任 何 責 任。 Changhong Jiahua Holdings Limited 長虹佳華控股有限公司 （於百慕達註冊成立之有限公司） （股份代號：3991） 截 至 二 零 二 四 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 公 告 未 經 審 核 中 期 業 績 本 公 司 董 事 會（「董 事 會」）欣 然 宣 佈，本 公 司 及 其 附 屬 公 司（統 稱「本 集 團」） 截 至 二 零 二 四 年 六 月 三 十 日 止 六 個 月 之 未 經 審 核 簡 明 綜 合 中 期 業 績，連 同 二 零 二 三 年 相 應 期 間 的 未 經 審 核 比 較 數 字 載 列 如 下： 簡 明 綜 合 損 益 及 其 ...

Financial Performance - The company reported a significant increase in revenue, achieving a total of $1.2 billion, representing a 15% year-over-year growth[5]. - In 2023, the company's total revenue was approximately HKD 37,170.63 million, a decrease of 3.05% compared to the previous fiscal year[25]. - The profit attributable to shareholders was approximately HKD 360.54 million, a decrease of about 1.44% compared to the previous fiscal year, with basic earnings per share at HKD 0.1403, down HKD 0.002 from HKD 0.1423 in the previous year[25]. - The total revenue for the fiscal year ended December 31, 2023, was approximately HKD 37,170.63 million, a decrease of 3.05% from HKD 38,339.11 million in 2022, primarily due to fluctuations in the RMB exchange rate[33]. - The annual profit for the fiscal year was approximately HKD 360.54 million, down 1.44% from HKD 365.82 million in 2022, also impacted by RMB exchange rate fluctuations[34]. - The total comprehensive income for the fiscal year was approximately HKD 311.11 million, a significant increase from HKD 78.23 million in 2022, mainly due to RMB exchange rate fluctuations[35]. - The revenue for the ICT consumer products distribution business decreased by 13.80% year-on-year to HKD 16,830.93 million, with operating profit declining by 10.71% to HKD 309.95 million[28]. - The ICT enterprise products distribution business saw a revenue increase of 6.37% year-on-year to HKD 12,379.91 million, with operating profit rising by 1.28% to HKD 411.61 million[28]. - The other business segment's revenue increased by 10.95% year-on-year to HKD 7,959.80 million, but operating profit decreased by 8.88% to HKD 57.85 million due to lower smartphone margins[29]. - The company reported a profit before tax of HKD 428,648 for the year[111]. - Total assets as of December 31, 2023, were HKD 17,407,463, with total liabilities amounting to HKD 14,594,918[111]. - The company reported a net cash outflow from operating activities of HKD 2,929,336,000, compared to HKD 2,119,006,000 in the previous year[196]. Future Outlook - The company provided a positive outlook for the next quarter, projecting a revenue growth of 10% to $1.32 billion[5]. - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year[5]. - The company aims to enhance customer engagement through digital platforms, expecting a 30% increase in online sales[5]. - The company plans to continue expanding its market presence and investing in new technologies and products[111]. - The group aims to leverage advanced digital technologies such as AI to enhance service quality and create new industry ecosystems in 2024[30]. - The company aims to enhance its operational efficiency through strategic initiatives and potential mergers and acquisitions[111]. Investment and Development - The company is investing in new technology development, allocating $50 million towards R&D initiatives[5]. - The company is considering strategic acquisitions to enhance its product offerings, with a budget of $100 million for potential deals[5]. - The company is accelerating the layout and development of innovative businesses to cultivate core capabilities and continuously promote strategic transformation and upgrading[25]. - Research and development expenses amounted to HKD (26,894), while administrative expenses were HKD (184,349)[111]. - The acquisition of non-current assets amounted to HKD 25,635 million, reflecting ongoing capital expenditures[6]. Operational Efficiency - Operational efficiency improvements are projected to reduce costs by 5%, translating to savings of approximately $60 million annually[5]. - The company has implemented strict inventory management, credit management, and accounts receivable management to ensure efficient operation of working capital[26]. - The company has engaged Deloitte to provide an independent auditor's report on its financial statements, confirming compliance with relevant regulations[175]. - The management is responsible for implementing necessary internal controls to prepare accurate financial statements[184]. Corporate Governance - The company is committed to maintaining high standards of corporate governance and business ethics for the long-term interests of the company and its shareholders[58]. - The board consists of nine members, including the chairman and CEO, who has been in dual roles since April 8, 2021, which deviates from corporate governance guidelines[59]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, primarily composed of independent non-executive directors[91]. - The board held a total of 7 meetings during the fiscal year ending December 31, 2023, exceeding the minimum requirement of 4 meetings[75]. - The independent non-executive directors have confirmed their independence according to the listing rules, and the company believes they are independent[90]. Risk Management - The geopolitical tensions and global economic instability have posed challenges, but the company has maintained a steady performance and positive development trend[25]. - The variable interest entity agreement poses potential risks, including scrutiny from Chinese tax authorities[148]. - The board will review compliance with the variable interest entity agreement at least annually to mitigate associated risks[148]. Employee Relations - The company maintained good relationships with employees, with no significant labor disputes or drastic changes in employee numbers affecting normal business operations[98].

Financial Performance - For the fiscal year ending December 31, 2023, the total revenue was HKD 37,170,632, a decrease of 3.06% from HKD 38,339,109 in 2022[16] - Gross profit for the year was HKD 1,300,615, representing an increase of 2.2% compared to HKD 1,272,511 in the previous year[16] - The company reported a profit before tax of HKD 428,648, down from HKD 441,419 in the previous year, reflecting a decrease of 2.0%[19] - The net profit attributable to shareholders for the year was HKD 360,540, slightly down from HKD 365,816 in 2022[19] - The company reported a total comprehensive income of HKD 311,107,000 for the fiscal year ending December 31, 2023[36] - Basic and diluted earnings per share were HKD 14.03 and HKD 14.23 respectively[36] - The overall segment profit for 2023 was HKD 817,044,000, compared to HKD 779,414,000 in 2022, indicating a year-over-year increase of 4.8%[90] - The annual profit for the year ending December 31, 2023, was approximately HKD 360.54 million, a decrease of 1.44% compared to HKD 365.82 million in 2022, primarily due to fluctuations in the RMB exchange rate[171] Expenses and Liabilities - The total operating expenses, including selling and administrative expenses, amounted to HKD 661,801, which is an increase from HKD 639,326 in 2022[16] - The company’s total liabilities decreased from HKD 14,586,457 thousand in 2022 to HKD 13,315,431 thousand in 2023, reflecting a decline of about 8.7%[20] - The company’s trade payables increased from HKD 5,128,275 thousand in 2022 to HKD 7,121,164 thousand in 2023, representing an increase of approximately 38.9%[20] - Interest expenses for bank borrowings rose to HKD 86,064 in 2023 from HKD 68,014 in 2022, an increase of 26.5%[116] Assets and Equity - Total assets decreased from HKD 17,311,227 thousand in 2022 to HKD 15,886,548 thousand in 2023, reflecting a decline of approximately 8.2%[20] - The company's net assets increased from HKD 2,629,964 thousand in 2022 to HKD 2,812,545 thousand in 2023, reflecting a growth of approximately 6.9%[21] - The total equity attributable to shareholders rose from HKD 2,629,964 thousand in 2022 to HKD 2,812,545 thousand in 2023, indicating an increase of about 6.9%[22] - Cash and cash equivalents rose significantly from HKD 355,687 thousand in 2022 to HKD 1,087,803 thousand in 2023, marking an increase of approximately 205.5%[20] Employee and Operational Metrics - The total number of employees as of December 31, 2023, was 1,466, an increase from 1,357 employees in 2022[2] - The company has not faced any major labor disputes or significant fluctuations in employee numbers, maintaining good relations with employees[189] Dividends and Shareholder Information - The company declared a final dividend of HKD 0.05 per share, totaling HKD 128,526,000, which was paid on June 23, 2023[7] - The board of directors proposed a final dividend of HKD 0.05 per share for the year ending December 31, 2023, consistent with the previous year[163] - The company’s major shareholder, Sichuan Changhong, holds approximately 23.22% of the issued share capital[43] Future Outlook and Strategy - The company aims to continue focusing on ICT distribution and integrated services while seeking new business opportunities[5] - The company plans to expand its market presence through new product launches and strategic partnerships in the ICT sector[90] - The company plans to leverage advanced digital technologies such as artificial intelligence to enhance service quality and differentiate value in 2024[169] - The company aims to accelerate the development of new business strategies and core capabilities to adapt to market changes and drive innovation[165] Compliance and Governance - The company has maintained compliance with all corporate governance code provisions, with minor deviations noted[196] - The board of directors includes three independent non-executive directors, ensuring a balance of power and independent viewpoints[183] Accounting and Financial Reporting - The company has applied new accounting standards effective from January 1, 2023, which did not have a significant impact on the consolidated financial statements[44] - The company has not early adopted any new accounting standards that are issued but not yet effective, which are expected to have no significant impact on future financial statements[33] - The company has implemented revised accounting policies related to lease transactions and deferred tax assets and liabilities[30] Market and Economic Conditions - The geopolitical tensions and global economic instability continue to pose challenges, but the company remains committed to maintaining stable performance and growth[164]

Revenue and Profit - Revenue for the six months ended June 30, 2023, was HKD 16,960,784 thousand, a decrease of 5.3% compared to HKD 17,906,448 thousand in the same period of 2022[7] - Profit attributable to owners of the company for the period was HKD 164,478 thousand, down 6.1% from HKD 175,190 thousand in the prior year[7] - Basic and diluted earnings per share were HKD 6.40, compared to HKD 6.82 in the same period last year[7] - The group's revenue for the six months ended June 30, 2023, was approximately HKD 16,960.78 million, a decrease of 5.28% compared to the same period last year[89] - The group's profit for the same period was approximately HKD 164.48 million, down 6.11% year-on-year, primarily due to fluctuations in the RMB exchange rate[92] Gross Profit and Margins - Gross profit increased to HKD 591,937 thousand, up 6.9% from HKD 553,499 thousand year-on-year[7] - The overall gross profit margin for the first half of 2023 was 3.49%, an increase of approximately 0.40 percentage points year-on-year[84] - The group reported a gross profit of HKD 591,937 for the six months ended June 30, 2023, compared to HKD 554,499 in the same period of 2022[36] Expenses - Research and development expenses decreased to HKD 13,789 thousand from HKD 17,939 thousand, reflecting a reduction of 23.8%[7] - Administrative and research expenses decreased compared to the same period last year, while distribution and sales expenses increased due to higher labor costs and market expenses[84] - The cost of goods sold was HKD 16,368,847, down from HKD 17,352,949 in the same period last year[36] Cash Flow and Financial Position - Net cash used in operating activities was HKD (2,530,034) thousand, compared to HKD (2,479,323) thousand in the previous year[16] - Net cash generated from investing activities was HKD 1,627,423 thousand, significantly up from HKD 843,894 thousand year-on-year[16] - Cash and cash equivalents at the end of the period increased to HKD 936,150 thousand from HKD 90,000 thousand in the previous year[16] - As of June 30, 2023, the total interest-bearing borrowings amounted to HKD 2,320.89 million, while cash and bank balances were HKD 4,439.54 million[42] - The company's net asset liability ratio was 4.42 times as of June 30, 2023[42] Revenue Segmentation - Revenue from ICT consumer products was HKD 8,052,248, down 15.2% from HKD 9,504,415 year-on-year[24] - Revenue from ICT enterprise products increased to HKD 5,550,778, up 8.1% from HKD 5,138,700 in the previous year[24] - The ICT consumer products distribution segment's revenue decreased by 15.28% to HKD 8,052.25 million, with profit declining by 6.76% to HKD 159.62 million[85] - The ICT enterprise products distribution segment's revenue increased by 8.02% to HKD 5,550.78 million, with profit rising by 5.27% to HKD 191.63 million[85] - Other businesses saw a revenue increase of 2.89% to HKD 3,357.76 million, with profit up 36.45% to HKD 35.54 million, driven by smartphone sales growth[85] Shareholder Information - Major shareholder Sichuan Changhong holds 874,650,000 shares, representing 60.13% of the ordinary shares[122] - The board of directors did not recommend any dividend distribution for the six months ended June 30, 2023[103] - The company reported a dividend of HKD 0.05 per share, consistent with the previous year[134] - The company has not granted any share options to directors or their associates during the six months ending June 30, 2023[121] Management and Corporate Governance - The company has strengthened its basic management and enhanced its digital system construction and business process optimization during the reporting period[84] - The company established an audit committee to review and monitor financial reporting procedures and internal control systems[109] - The audit committee consists of three members, including Mr. Chen Ming Shen as the chairman[109] Employee Information - The total number of employees as of June 30, 2023, was 1,408, an increase from 1,316 employees a year earlier[102] Taxation - The tax rate for the subsidiary operating in China was 25% for the six months ended June 30, 2023, compared to 15% for the same period in 2022[24] - The company's subsidiaries in the Philippines benefit from a reduced corporate tax rate of 15% under the CREATE Act[140] Trade Receivables and Payables - The company's trade receivables amounted to HKD 164,478,000 as of June 30, 2023[131] - Trade payables and notes payable amounted to 8,214,901 thousand HKD as of June 30, 2023, down from 10,103,065 thousand HKD as of December 31, 2022[145] - The aging analysis of trade receivables showed a total of 4,224,190 thousand HKD as of June 30, 2023[155] - The credit period for trade customers ranges from 30 to 180 days, with annual reviews of credit limits[154]

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之內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就 因本公告全部或任何部份內容而產生或因依賴該等內容而引致之任何損 失承擔任何責任。 Changhong Jiahua Holdings Limited 長 虹 佳 華 控 股 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號：3991） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 之 中 期 業 績 公 告 未經審核中期業績 本公司董事會（「董事會」）欣然宣佈，本公司及其附屬公司（統稱「本集團」） 截至二零二三年六月三十日止六個月之未經審核簡明綜合中期業績，連 同二零二二年相應期間的未經審核比較數字載列如下： 簡明綜合損益及其他全面收益表 截至二零二三年六月三十日止六個月 二零二三年 二零二二年 附註 千港元 千港元 （未經審核） （未經審核） ...

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching HKD 1.2 billion for the fiscal year[1]. - The company provided a future outlook with a revenue guidance of HKD 1.5 billion for the next fiscal year, representing a 25% increase[1]. - The company reported a net profit margin of 12%, up from 10% in the previous year[1]. - The total assets of the company increased by 20%, reaching HKD 5 billion as of the end of the reporting period[1]. - The group reported a profit for the year ending December 31, 2022, with total dividends proposed amounting to HKD 128,526,000, maintaining a dividend of HKD 0.05 per share[133]. - The profit attributable to shareholders for 2022 was approximately HKD 365.82 million, a decrease of about 11.48% compared to the previous fiscal year, with basic earnings per share of HKD 0.1423, down from HKD 0.1608[33]. - The gross profit margin for 2022 was 3.32%, an increase of approximately 0.36 percentage points from the previous fiscal year, mainly due to changes in the sales contribution structure of the product line[33]. User Growth and Market Expansion - User data showed a growth of 25% in active users, totaling 3 million by the end of the reporting period[1]. - Market expansion plans include entering three new Southeast Asian countries by Q3 2024, targeting a 10% market share[1]. - New product launches included two innovative smart home devices, expected to contribute an additional HKD 200 million in revenue[1]. Research and Development - The company is investing HKD 100 million in R&D for new technologies in AI and IoT over the next two years[1]. Corporate Governance and Leadership - The company has a strong leadership team with over 22 years of experience in investment and corporate finance, and over 32 years in economic and corporate governance research[14][16]. - The company’s independent directors have extensive backgrounds in finance and management, contributing to robust governance and strategic oversight[15][19]. - The financial management team has a combined experience of over 17 years in accounting and financial management, enhancing the company's financial strategies[18]. - The leadership team is well-educated, with advanced degrees from prestigious institutions, ensuring informed decision-making[14][16]. - The board consists of nine members, including five executive directors and four independent non-executive directors[56]. Risk Management and Compliance - The group faced significant risks, including reliance on the overall economic conditions in China and dependence on a few major suppliers, which could adversely affect revenue and profitability[122]. - The group has established compliance procedures to ensure adherence to relevant laws and regulations, including the Company Law and Labor Contract Law of the People's Republic of China[129]. - The company is committed to transparency and compliance, with a dedicated company secretary overseeing regulatory requirements[19]. Sustainability and Corporate Social Responsibility - The company emphasizes sustainable development and corporate social responsibility, integrating these into its business strategy[107]. - The group is committed to sustainable development, integrating social responsibility into its business strategy while adhering to environmental laws and regulations[126]. - In 2022, the group's electricity consumption was 1,096 million kWh, resulting in carbon emissions of 1,161 tons, with a per capita carbon emission of 0.86 tons[126]. - The group’s fuel consumption related to carbon emissions was 7.1 tons in 2022, a slight decrease from 7.7 tons in 2021, with per capita fuel consumption at 0.0052 tons, also down from the previous year[132]. - Paper usage decreased by 20% to 0.84 million sheets in 2022 from 1.05 million sheets in 2021, attributed to the implementation of electronic signing[132]. Shareholder Relations and Communication - The group promotes effective communication with shareholders and has established a shareholder communication policy[51]. - The company has a specific communication policy to ensure timely disclosure of any changes in personal information of directors[56]. Strategic Partnerships and Transactions - The company entered into a partnership agreement with Sichuan Changhong Holdings and Sichuan Changhong, committing RMB 30 million for a 2.00% equity stake in a limited partnership focused on high-growth sectors such as new energy and smart manufacturing[177]. - The company has established a stable strategic business relationship with Sichuan Changhong Electronics Group, ensuring a steady source of revenue for future growth[186]. - The company has engaged in related party transactions, including leasing agreements for office properties to support its operational needs[178]. Employee and Labor Relations - As of December 31, 2022, the total number of employees in the group was 1,357, an increase from 1,309 in 2021[35]. - Total employee costs for the year ended December 31, 2022, were approximately HKD 432.09 million, slightly up from HKD 430.24 million in 2021[35]. - The group has no significant labor disputes or major fluctuations in employee numbers affecting normal business operations[36].

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之內容 概不負責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就 因本公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。 Changhong Jiahua Holdings Limited 長 虹 佳 華 控 股 有 限 公 司 （於百慕達註冊成立之有限公司） （股份代號：3991） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 全 年 業 績 公 告 業績 本公司董事會（「董事會」）欣然宣佈，本公司及其附屬公司（統稱「本集團」） 截至二零二二年十二月三十一日止年度之經審核綜合財務業績。 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收益 3 38,339,109 44,558,173 ...

Financial Performance - For the first half of 2022, the company achieved revenue of approximately HKD 17,906.45 million, a decrease of 19.65% compared to the same period last year[42]. - Shareholders' profit for the first half of 2022 was approximately HKD 175.20 million, down 5.46% from the previous year, with basic earnings per share of HKD 0.0682, a decrease of HKD 0.0039[42]. - The total comprehensive income for the six months ended June 30, 2022, was approximately HKD 25.90 million, significantly lower than HKD 217.29 million in 2021, primarily due to fluctuations in the RMB exchange rate[50]. - The profit for the same period was approximately HKD 175.19 million, down 5.46% from HKD 185.30 million in 2021, mainly due to the decrease in revenue[50]. - The group reported a total segment profit of HKD 379,263 for the six months ended June 30, 2022, compared to HKD 391,225 for the same period in 2021, reflecting a decline of 3.1%[110]. - The profit attributable to the company's owners for the six months ended June 30, 2022, was HKD 175,190,000, a decrease from HKD 185,300,000 in the same period of 2021, representing a decline of approximately 6.0%[122]. Revenue Breakdown - The ICT consumer products distribution segment reported revenue growth of 10.61% to HKD 9,504.42 million, with profit increasing by 19.84% to HKD 171.19 million[46]. - The ICT enterprise products distribution segment saw a revenue decline of 6.41% to HKD 5,138.70 million, with profit decreasing by 1.67% to HKD 182.03 million[46]. - The other business segment experienced a significant revenue drop of 60.22% to HKD 3,263.33 million, with profit decreasing by 58.82% to HKD 26.04 million[47]. - Revenue for the six months ended June 30, 2022, was HKD 17,906,448 thousand, a decrease of 19.4% compared to HKD 22,286,324 thousand in the same period of 2021[88]. - Sales in mainland China for the six months ended June 30, 2022, were HKD 17,849,415, down 20.1% from HKD 22,251,615 in the previous year[112]. Cost and Expenses - The cost of goods sold for the period was HKD 17,352,949, down from HKD 21,700,058 in the previous year, indicating a reduction of 20.5%[114]. - The group incurred research and development expenses of HKD 17,939 during the period, compared to HKD 16,972 in the previous year[110]. - Research and development expenses increased to HKD 17,939 thousand from HKD 16,972 thousand, indicating a rise of 5.7%[88]. - The group's financing costs for the period were HKD 82,754, an increase from HKD 76,443 in the previous year[110]. Financial Position - As of June 30, 2022, the company's interest-bearing borrowings totaled HKD 2,144.71 million, with cash and bank balances of HKD 90.00 million, indicating a healthy financial position[51]. - The net asset liability ratio as of June 30, 2022, was 3.70 times, reflecting the company's leverage[51]. - The company's cash and cash equivalents at the end of the period were HKD 90,000 thousand, down from HKD 780,878 thousand at the end of the previous year[97]. - Trade receivables as of June 30, 2022, amounted to HKD 5,430,817,000, an increase from HKD 4,385,787,000 in 2021, indicating a year-over-year growth of approximately 23.8%[128]. - Bank borrowings increased significantly to HKD 2,144,711,000 as of June 30, 2022, compared to HKD 1,179,675,000 as of December 31, 2021, reflecting an increase of approximately 81.9%[130]. Strategic Focus - The company is focusing on digital economy trends and aims to enhance its strategic transformation and upgrade its core capabilities in the second half of 2022[48]. - The company plans to explore new models and develop new drivers in key areas such as cloud, network, data, intelligence, and virtual reality[48]. - The company emphasizes the importance of digital economy development as a key driver for high-quality economic growth in China[48]. - The company continues to strengthen its basic management and optimize business processes to ensure efficient operation and risk control[42]. Shareholder Information - The board of directors did not recommend any dividend distribution for the six months ended June 30, 2022, consistent with the previous year[63]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2022[65]. - As of June 30, 2022, Sichuan Changhong holds 874,650,000 shares (60.13%) of the company's ordinary shares and 1,115,868,000 shares (100.00%) of the preferred shares[80]. - The total issued shares and preferred shares of the company as of June 30, 2022, are 1,454,652,000 shares and 1,115,868,000 shares respectively[82]. - Sichuan Changhong is the largest shareholder, owning approximately 23.22% of the total issued share capital of Sichuan Changhong Electric Co., Ltd.[82].

Financial Performance - The company reported a significant increase in revenue, achieving a total of $500 million, representing a 20% year-over-year growth[1] - The company provided a positive outlook for the next quarter, projecting a revenue increase of 25% to $625 million[1] - The company achieved revenue of approximately HKD 44,558.17 million for the year ended December 31, 2021, representing a growth of 10.34% compared to the previous fiscal year[82] - The gross profit margin for 2021 was 2.96%, an increase of approximately 0.29 percentage points from the previous fiscal year, primarily due to changes in the sales contribution structure of product lines[82] - The net profit attributable to shareholders was approximately HKD 413.25 million, a year-on-year increase of about 19.64%, with basic earnings per share rising to HKD 0.1608 from HKD 0.1344, an increase of HKD 0.0264[82] - The overall comprehensive income for the year was approximately HKD 500.64 million, a decrease from HKD 512.18 million in the previous year, primarily due to fluctuations in the RMB exchange rate[84] User Growth and Market Expansion - User data showed a growth in active users, reaching 2 million, which is a 15% increase compared to the previous quarter[1] - Market expansion plans include entering three new international markets by the end of the year, which is expected to increase market share by 10%[1] - New product launches are expected to contribute an additional $100 million in revenue over the next fiscal year[1] Investment and Development - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience[1] - The company is considering strategic acquisitions to bolster its technology portfolio, with a budget of $200 million allocated for potential deals[1] - The company is focusing on digital economy development, aiming to enhance its capabilities in cloud computing, big data, and virtual reality, while also pursuing strategic partnerships with leading manufacturers[79] Operational Efficiency and Cost Management - Operational efficiency improvements are projected to reduce costs by 5%, translating to savings of $25 million annually[1] - The company plans to strengthen its risk management and optimize business processes to improve operational efficiency and provide smarter services to customers[82] Governance and Management - The management team includes experienced professionals with over 21 years in investment and corporate finance, and over 31 years in economic and corporate governance research[60][63] - The company has a strong focus on human resources, operations, and administrative management, with executives having extensive experience in the IT industry and financial management[64][65] - The independent directors bring diverse expertise from various sectors, contributing to the company's governance and strategic direction[61][62] - The board of directors includes members with advanced degrees in economics and management, reflecting a strong academic foundation for strategic decision-making[60][63] Risk Management - The company is actively involved in risk management to maintain operational stability during uncertain economic conditions[71] - The company has established a comprehensive risk management system to monitor high-risk business operations, ensuring the effectiveness of internal controls and financial reporting[176] - The board reviews the effectiveness of the company's risk management and internal control systems at least annually, ensuring compliance and asset protection[176] Sustainability and Corporate Responsibility - The management emphasized a commitment to sustainability initiatives, aiming for a 30% reduction in carbon footprint by 2025[1] - The company is focused on sustainable development, integrating social responsibility into its business strategy while pursuing economic benefits[182] - The company plans to enhance its corporate governance procedures to ensure long-term sustainable development[181] Shareholder Communication and Engagement - The company emphasizes strong communication with shareholders and has established a shareholder communication policy to ensure effective execution[104] - The company has received confirmation from directors regarding their responsibility for preparing financial statements and the auditors' declaration of their reporting responsibilities[112] Board Structure and Meetings - The board of directors consists of seven members, including four executive directors and three independent non-executive directors[110] - The board held six meetings during the fiscal year ending December 31, 2021, with attendance rates for executive directors ranging from 100% to 100%[116] - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, with a majority of independent non-executive directors[144] Employee and Compensation Policies - The total employee cost for the year ended December 31, 2021, was approximately HKD 430.24 million, compared to HKD 319.17 million in 2020, with total employees increasing to 1,309 from 1,259[90] - The company’s senior management compensation is linked to performance, with two individuals earning between HKD 500,000 and HKD 3,000,000, and two earning above HKD 3,000,000[169] Financial Stability and Capital Structure - As of December 31, 2021, the total outstanding unsecured and interest-bearing borrowings of the group amounted to approximately HKD 1,179.68 million, a decrease from HKD 2,195.45 million in 2020[85] - The group's cash and bank balances were approximately HKD 3,394.84 million, up from HKD 3,287.36 million in 2020, with trade receivables and notes receivable totaling approximately HKD 4,444.82 million, compared to HKD 3,528.45 million in 2020[85] - The group maintains a strong capital structure to ensure optimal shareholder returns and support business development[92]