三大平台支撑智能分销服务升级 作为数字智能综合服务商，长虹佳华打造解决方案聚合平台，通过深耕多个专业市场，在智算中心基础 设施、ICT系统架构、云计算、人工智能大模型、低空经济等领域，不断拓宽和加深与国内外品牌合 作，致力于为生态合作伙伴提供更具创新力和竞争力的产品、应用解决方案及差异化服务。 场景解决方案 长虹佳华通过创新"智能商业"体系，持续构筑数字智能综合服务平台，加大渠道下沉力度，小程序动销 工具通达1-6级城市终端门店；提升线上店铺运营，交易平台百秒出库，业务提效达95.6%；打通线上线 下融合零售，支持多品牌一件代发订单达百万级。通过全流程精准智能、个性化的分销服务，长虹佳华 助力合作伙伴提升运营质效，创新商业模式，推动业务逆势增长。 近日，长虹佳华发布了2024年度业绩公告。公告显示，2024年，长虹佳华实现营业收入399.86亿港元， 同比增长7.58%；净利润达到3.79亿港元，同比增长5.19%。凭借强大的数智化核心能力，积极把握以人 工智能为代表的前沿技术和市场机会，2024年，长虹佳华实现了业绩持续增长，交出了一份亮眼的成绩 单。 2024年，全球经贸环境复杂多变，国内政策持续发力，人 ...

Financial Performance - The company's total revenue for the year ending December 31, 2024, was HKD 39,986,349, an increase from HKD 37,170,632 in the previous year, representing a growth of approximately 4.9%[3] - Gross profit for the year was HKD 1,382,851, compared to HKD 1,300,615 in the previous year, indicating a growth of about 6.3%[3] - The net profit attributable to shareholders for the year was HKD 379,266, up from HKD 360,540, reflecting an increase of approximately 5.2%[4] - Basic earnings per share increased to HKD 14.75 from HKD 14.03, marking a rise of about 5.1%[4] - The total comprehensive income for the year was HKD 295,136, down from HKD 311,107 in the previous year, indicating a decrease of approximately 5.1%[4] Expenses and Costs - The company reported a total operating expenses of HKD 1,059,973, which includes selling and distribution expenses of HKD 498,713 and administrative expenses of HKD 202,094[3] - Research and development expenses were HKD 26,507, slightly decreased from HKD 26,894 in the previous year[3] - The company incurred a financing cost of HKD 248,548, which highlights the cost of capital management[32] - The total employee costs, including salaries and related expenses, increased to HKD 376,719,000 in 2024 from HKD 342,780,000 in 2023, marking an increase of about 9.9%[38] Assets and Liabilities - Total assets decreased from HKD 17,936,181 thousand in 2023 to HKD 17,311,227 thousand in 2024, a decline of approximately 3.47%[5] - Total liabilities increased from HKD 15,076,338 thousand in 2023 to HKD 14,586,457 thousand in 2024, a decrease of approximately 3.25%[6] - The company's equity increased from HKD 2,979,155 thousand in 2023 to HKD 2,812,545 thousand in 2024, reflecting a decrease of about 5.6%[6] - The total accounts receivable as of December 31, 2024, is HKD 4,460,739,000, a decrease from HKD 4,863,658,000 in 2023, reflecting a reduction of approximately 8.3%[40] Market Strategy and Future Plans - The company plans to expand its market presence and invest in new product development to drive future growth[2] - The company has indicated a focus on strategic acquisitions to enhance its competitive position in the market[2] - The group aims to expand into new ecosystems such as cloud applications, the metaverse, cybersecurity, and low-altitude economy by leveraging technological services and innovations[53] - The company is actively responding to market challenges by focusing on "new technology-driven, high-quality growth" and enhancing its core capabilities in digital economy[47] Revenue Recognition and Reporting Standards - The group recognizes revenue upon the transfer of control of goods to distributors, which occurs when the goods are delivered to the specified location[21] - The estimated variable consideration is included in the transaction price and is assessed based on expected value[22] - The group has updated the estimated transaction price at each reporting period to reflect current conditions[23] - The company has adopted the revised Hong Kong Financial Reporting Standards starting from January 1, 2024, which will impact the presentation of financial statements[10] Shareholder Information - The company plans to maintain a final dividend of HKD 0.05 per share for the year ending December 31, 2024, subject to shareholder approval[45] - The proposed final dividend is HKD 0.05 per share, totaling HKD 128,526,000, to be paid on June 20, 2025[68] - The total declared final dividend for the year ending December 31, 2023, was HKD 128,526,000, paid on June 21, 2024[69] Corporate Governance - The company has complied with all corporate governance code provisions for the year ending December 31, 2024, except for the separation of roles between the chairman and CEO[73] - The annual performance for the year ending December 31, 2024, has been reviewed and approved by the company's audit committee[75] Employee Information - The total number of employees as of December 31, 2024, was 1,423, a decrease from 1,466 in the previous year[60] - The total employee costs for the fiscal year ending December 31, 2024, were approximately HKD 464.65 million, up from HKD 424.24 million in the previous year[60]

Core Message - The 17th "Jiahua Good Partner" Appreciation Conference was held in 11 cities, showcasing the company's commitment to fostering a prosperous ecosystem and exploring opportunities in the digital intelligence industry [1] - Changhong Jiahua is actively expanding its technological service ecosystem, focusing on cloud computing, metaverse, low-altitude economy, and AI-driven intelligent computing centers [2] - The company emphasizes the importance of long-term exploration and accumulation in building a thriving ecosystem, highlighting its comprehensive technological service capabilities [3] Digital Transformation and Innovation - Changhong Jiahua has significantly improved its operational and management levels through digital and intelligent transformation, integrating multiple brand manufacturers' systems with its business management systems [4] - The company's digital transformation has expanded its business scope and market space, leveraging big data and AI technologies to develop a series of digital products and tools [4] - Changhong Group invested over 3.26 billion yuan in R&D in 2023, with a 15.5% increase in Q1 2024, and has established a three-tier technological innovation system [5] Industry Empowerment and Application Scenarios - Changhong Jiahua is accelerating the application of emerging fields such as metaverse and low-altitude economy, collaborating with leading manufacturers to deepen focus in key areas of the digital industry [7] - The company has become the vice-chairman unit of the Low-altitude Economy Working Committee of the China Electronic Chamber of Commerce and co-released the "Low-altitude Intelligent Cloud Technology Research Report" industry standard [7] - Changhong Jiahua provided metaverse multi-dimensional interactive innovation products and solutions for the 5th National College Teachers' Teaching Metaverse Digital Technology Innovation Competition [7] Ecosystem Construction and Industry Leadership - Changhong Jiahua is transforming from traditional sales chains to more open, collaborative, and intelligent system ecosystems, integrating rich product portfolios and solutions in various directions [9] - The company offers comprehensive services including professional design, content creation, e-commerce live streaming, and supply chain management, building a win-win cooperation network for brand owners, channel partners, and retailers [9] - Changhong Group has established the first national-level industrial internet cross-domain platform in Sichuan, driving digital transformation across the industry chain [8] Future Outlook and Growth - Changhong Jiahua, a subsidiary of Changhong Group, achieved a revenue of 19.286 billion HKD in H1 2024, with a 13.71% year-on-year growth, and a 21.1% increase in enterprise-level business [12] - The company serves as the China general agent or exclusive general agent for dozens of Fortune 500 companies, providing innovative and competitive intelligent distribution services and application solutions [13] - Changhong Jiahua is confident in the growth of the digital intelligence industry, which is a key driver of the national economy, and is committed to continuous innovation and value creation [14][15]

[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].