Financial Performance - Total sales revenue for Vital Innovations Holdings Limited in 2023 was approximately RMB 835.6 million, a decrease of 23.5% compared to 2022[11] - The company's revenue decreased by approximately RMB 256.6 million or 23.5% to about RMB 835.6 million for the year ended December 31, 2023, compared to RMB 1,092.2 million for the previous year[21] - Revenue from mobile and smart devices dropped to RMB 834.4 million in 2023 from RMB 1,092.2 million in 2022, primarily due to a lack of revenue from sales of top-tier smartphones in China[21] - The company reported a segment loss of approximately RMB 2.1 million for mobile and smart devices in 2023, compared to a profit of RMB 431,000 in 2022, attributed to poor market activity and intense price competition[26] - The company did not declare or recommend any dividends for the year ended December 31, 2023, consistent with 2022[41] - The company does not recommend the payment of a final dividend for the year ended December 31, 2023, consistent with the previous year[76] Market Trends - The global smartphone shipment volume in 2023 was 1.14 billion units, a decline of 4% from the previous year, with a recovery expected in 2024[12] - The smartphone market is projected to grow by 4% in 2024, reaching 1.17 billion units, with a compound annual growth rate of 2.6% from 2023 to 2027[12] - Emerging markets, particularly in the Middle East, Africa, and Latin America, are expected to drive growth in smartphone shipments in 2024[12] - The smartphone market is anticipated to see a rebound in 2024, with one-third of the devices expected to be purchased in the Asia-Pacific region[12] - The global smartphone market is projected to grow at a compound annual growth rate (CAGR) of 6.23% from 2023 to 2030, driven by the adoption of 5G networks in developing countries[14] - The smartphone market achieved a valuation of approximately USD 509.28 billion in 2023, reflecting the increasing disposable income and the necessity of smartphones for various online activities[14] Company Strategy - The company is focusing on innovation and efficiency to retain its customer base during challenging market conditions[11] - The management is implementing defensive strategies to control operating expenses while seeking new sales growth opportunities[11] - The company plans to leverage emerging opportunities in AI and technology innovation, with a focus on integrating advanced AI features into smartphones and exploring AI applications in supply chain management[18] - The company aims to expand its market presence by introducing more Chinese brand smartphones and AIoT devices in regions such as Russia, Africa, Central Asia, and the Middle East[18] - The company has invested $5 million in research and development for new technologies aimed at improving operational efficiency[69] Financial Position - As of December 31, 2023, the company's trade and other receivables amounted to approximately RMB 2,919,000, a decrease of about RMB 98,000 compared to the same period in 2022[28] - As of December 31, 2023, the company's prepayments and deposits were approximately RMB 596,246,000, an increase of RMB 29,751,000 compared to 2022, reflecting higher payments to suppliers for mobile and smart devices[29] - The company's bank loans increased from RMB 7,166,000 as of December 31, 2022, to RMB 24,372,000 as of December 31, 2023, an increase of RMB 17,206,000 due to financing for mobile and smart devices[31] - The company's cash and bank balances decreased from approximately RMB 37,583,000 to approximately RMB 24,349,000, a reduction of about RMB 13,234,000 as of December 31, 2023[33] - The current ratio as of December 31, 2023, was 5.0, down from 6.5 as of December 31, 2022[33] - The company's asset-to-liability ratio as of December 31, 2023, was 4.84%, compared to 1.37% as of December 31, 2022[33] Corporate Governance - The company is committed to transparent and responsible financial management, focusing on investing in key growth areas to ensure sustainable growth and create shareholder value[20] - The board of directors has emphasized the importance of corporate governance and transparency in all business operations[73] - The company has adopted the corporate governance code as per the listing rules, ensuring transparency and sound governance practices[144] - The board consists of four executive directors and three independent non-executive directors, ensuring a balanced skill set for sustainable development[149] - The board's roles of the chairperson and CEO are clearly separated to enhance independence and accountability[150] Employee Relations - The company emphasizes the importance of maintaining strong relationships with employees, customers, and business partners for sustainable development[74] - The company is committed to providing competitive compensation and benefits to employees, along with training and development resources[74] - The company has established procedures to handle customer complaints promptly and effectively[74] - The company aims to actively respond to changing market demands through continuous interaction with customers[74] Risk Management - Financial risk management policies have been strengthened to mitigate potential market volatility, ensuring compliance with regulatory standards[70] - The audit committee is responsible for reviewing and monitoring the company's compliance with legal and regulatory requirements[192] Shareholder Information - As of December 31, 2023, the company's distributable reserves amount to approximately RMB 229.1 million[95] - The stock option plan allows for the issuance of up to 85,000,000 shares, representing 10% of the total shares issued as of the report date[82] - The stock option plan has a remaining validity of approximately 1 year, expiring on June 8, 2025[88] - The restricted share unit plan allows for a total of 32,300,000 shares to be issued, all of which have been granted and vested as of the report date[92] Compliance and Legal Matters - The company confirmed compliance with the non-competition agreement by all relevant parties for the year ended December 31, 2023[101] - There were no related party transactions that fell under the definitions of "connected transactions" or "continuing connected transactions" as per the Hong Kong Stock Exchange Listing Rules for the year ended December 31, 2023[97] - The company has arranged suitable directors' and officers' liability insurance for its directors and executives as of the year ended December 31, 2023[110]

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 835,605,000, a decrease of 23.5% compared to RMB 1,092,200,000 in 2022[4] - Gross profit for the same period was RMB 3,007,000, down 36.0% from RMB 4,701,000 in 2022[4] - The company reported a loss before tax of RMB 20,846,000, compared to a loss of RMB 17,557,000 in the previous year, representing an increase in loss of 18.0%[4] - Basic and diluted loss per share for 2023 was RMB 2.45, compared to RMB 2.06 in 2022, indicating a 19.0% increase in loss per share[4] - The total loss before tax for 2023 was RMB 20,846 thousand, compared to a loss of RMB 17,557 thousand in 2022[20] - The pre-tax loss for 2023 was RMB 20,839,000, compared to a loss of RMB 17,547,000 in 2022, indicating an increase in losses of approximately 13% year-over-year[39] - The company faced an operating loss of RMB 20.8 million in 2023, up from RMB 17.6 million in 2022, mainly due to poor domestic sales performance[60] Assets and Liabilities - Total current assets as of December 31, 2023, were RMB 628,296,000, slightly up from RMB 618,617,000 in 2022[6] - Total assets increased to RMB 628,862 thousand in 2023 from RMB 620,411 thousand in 2022, representing a growth of 1.8%[23] - Total liabilities rose to RMB 125,613 thousand in 2023, up from RMB 96,316 thousand in 2022, indicating a 30.5% increase[23] - The company’s cash and bank balances decreased to RMB 24,349,000 from RMB 37,583,000, a decline of 35.2%[6] - The company's bank loans increased from RMB 7.2 million on December 31, 2022, to RMB 24.4 million on December 31, 2023, due to increased financing for mobile and smart devices[78] - The current ratio of the company was 5.0 as of December 31, 2023, down from 6.5 as of December 31, 2022, indicating a decrease in liquidity[81] Revenue Segmentation - Revenue from the mobile and smart devices segment was RMB 834,407 thousand, down 23.6% from RMB 1,092,200 thousand in the previous year[20] - The AI and other equipment segment generated revenue of RMB 1,198 thousand, compared to no revenue in 2022[20] - Major customer A1 contributed RMB 167,179 thousand in 2023, down 71.1% from RMB 578,347 thousand in 2022[31] - The company reported a segment loss of RMB 3,033 thousand for the mobile and smart devices segment in 2023, compared to a profit of RMB 431 thousand in 2022[20] - Revenue from mobile and smart devices dropped to RMB 834.4 million in 2023 from RMB 1,092.2 million in 2022, primarily due to the lack of revenue from sales of top-tier smartphones in China[70] - The company's revenue from Hong Kong increased to RMB 832.6 million (99.6% of total revenue) in 2023, compared to RMB 726.8 million (66.5%) in 2022, while revenue from China fell to RMB 3.0 million (0.4%) from RMB 365.4 million (33.5%)[71] Inventory and Receivables - Inventory decreased significantly to RMB 1,211,000 from RMB 8,014,000, reflecting a reduction of 84.9%[6] - Trade receivables decreased to RMB 11,000 in 2023 from RMB 40,000 in 2022, representing a decline of 72.5%[41] - The total amount of trade and other receivables was RMB 2,919,000 in 2023, down from RMB 3,017,000 in 2022, a decrease of approximately 3.3%[41] Employee and Operational Costs - Total employee costs for 2023 were RMB 11,557,000, slightly down from RMB 11,582,000 in 2022, reflecting a marginal decrease of about 0.2%[35] - The company is adopting a defensive strategy by strictly controlling operating expenses while seeking new sales growth opportunities amid a challenging global economic environment[60] Corporate Governance and Compliance - The company has adopted new international financial reporting standards, which did not have a significant impact on the financial statements for the year[9] - The company has complied with the corporate governance code throughout the review year[92] - There were no major litigations or arbitrations during the year ending December 31, 2023[96] Market Trends and Future Outlook - Global smartphone shipments in 2023 totaled 1.14 billion units, a decrease of 4% from the previous year, with market saturation and intensified competition being the main causes[57] - The global smartphone market is expected to grow by 4% in 2024, reaching 1.17 billion units, with a compound annual growth rate (CAGR) of 2.6% projected from 2023 to 2027[61] - Emerging markets, particularly in the Middle East, Africa, and Latin America, are expected to drive growth in the smartphone sector, with growth rates of 9%, 3%, and 2% respectively in 2023[61] - The company expects a stronger economic growth in 2024, driven by government support and a focus on international and domestic trade[66] Strategic Initiatives - The company plans to leverage AI and technology innovations, focusing on integrating advanced AI features into smartphones and exploring AI applications in supply chain management[67] - The company aims to expand its market presence by introducing more Chinese brand smartphones and AIoT devices in regions such as Russia, Africa, Central Asia, and the Middle East[67]

Smartphone Market Trends - In Q1 2023, global smartphone shipments declined by 14.6% year-on-year to 268.6 million units, marking the seventh consecutive quarter of decline due to weak market demand and macroeconomic uncertainties [18]. - The company anticipates a further decline in overall smartphone shipments in 2023, with IDC forecasting a decrease of 3.2%, resulting in an expected total of 1.17 billion units shipped [23]. - A specific smartphone model, a futuristic foldable phone, continues to provide consumers with more choices, indicating potential recovery in shipments as component shortages ease [23]. Strategic Initiatives - The management team plans to enhance the strategic product portfolio and introduce more Chinese brand smartphones and related products to new customers as part of the ecosystem [23]. - The company will focus on market expansion in Central Asia, the Middle East, and Eastern Europe, collaborating with strategic partners to achieve this [23]. - Despite the challenging business environment, the company aims to leverage its resources and experience to seek opportunities in the technology sector [20]. - The management team is adopting a defensive strategy by sacrificing profit margins to attract customers and strictly controlling operating expenses [18]. - The management team will invest more resources in selling well-known premium smartphones to new customers in China in the second half of 2023 [23]. Financial Performance - The company's revenue decreased by approximately RMB 347.1 million or 49.7% to about RMB 351.8 million for the six months ended June 30, 2023, compared to RMB 698.9 million in the same period of 2022 [28]. - Revenue from mobile and smart devices dropped significantly to RMB 348.8 million, down from RMB 698.9 million, primarily due to the absence of sales of top-tier smartphones in China [28]. - The gross profit for the period was RMB 1.3 million, compared to RMB 2.6 million in the same period of 2022, with a gross margin of 0.38% [33]. - The company incurred a pre-tax loss of RMB 8,841,000, slightly higher than the loss of RMB 8,812,000 in the previous year [85]. - The company reported revenue of RMB 351,773,000 for the six months ended June 30, 2023, a decrease of 49.7% compared to RMB 698,911,000 in the same period of 2022 [85]. Cash Flow and Liquidity - The company's cash and bank balances decreased from RMB 37.6 million as of December 31, 2022, to RMB 19.1 million as of June 30, 2023 [37]. - The current ratio as of June 30, 2023, was 5.7, down from 6.5 as of December 31, 2022 [37]. - The net cash used in operating activities for the six months ended June 30, 2023, was RMB (35,437) thousand, compared to RMB 35,945 thousand for the same period in 2022, indicating a negative shift in cash flow [95]. Debt and Liabilities - Bank borrowings increased to approximately RMB 25.3 million as of June 30, 2023, compared to about RMB 7.2 million as of December 31, 2022 [41]. - The company's total liabilities increased to RMB 109,197 thousand as of June 30, 2023, compared to RMB 95,753 thousand at the end of 2022, reflecting a rise of 14.0% [89]. - The company’s secured bank loans are subject to interest rates ranging from 7.50% to 8.25% as of June 30, 2023, compared to 3.25% to 7.50% as of December 31, 2022 [145]. Operational Highlights - As of June 30, 2023, the company employed approximately 27 staff members, a slight decrease from 28 employees as of June 30, 2022 [62]. - The company has not made any significant investments or acquisitions during the reporting period [73]. - There were no major litigation or arbitration proceedings during the reporting period [72]. Dividend and Shareholder Information - The board of directors recommended not to declare an interim dividend for the period [47]. - The company did not declare or recommend any dividends for the six months ended June 30, 2023, nor for the same period in 2022 [128].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 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。 Vital I nnovatio ns Holdings Limited 維 太 創 科 控 股 有 限 公司 （於開曼群島註冊成立之有限公司） （股份代號：6133） 截至2023年6月30日止六個月 中期業績公告 維太創科控股有限公司（「本公司」）之董事（「董事」）會（「董事會」）謹此公佈本公 司及其附屬公司（統稱「本集團」）截至2023年6月30日止六個月（「本期間」）之未經 審核簡明綜合中期業績連同2022年同期的比較數字。 ...

Financial Performance - In 2022, Vital Innovations Holdings achieved sales revenue of approximately RMB 1,092.2 million, representing a 62.4% increase compared to 2021[11] - The company reported an operating loss of approximately RMB 17.6 million in 2022, an improvement from the operating loss of RMB 20.6 million in 2021[11] - The group's revenue increased from approximately RMB 672.7 million in 2021 to approximately RMB 1,092.2 million in 2022, representing a growth of 62.4%[19] - Revenue from mobile and smart devices rose to RMB 1,092.2 million in 2022, up from RMB 651.1 million in 2021, driven by enhanced sales of premium smartphones in China[19] - The group's profit from mobile and smart devices was approximately RMB 431,000 in 2022, a significant improvement from a loss of RMB 3.3 million in 2021[25] - The company achieved a revenue of HKD 1.2 billion for the fiscal year 2022, reflecting a 15% increase compared to the previous year[50] - Future outlook indicates a projected revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion strategies[50] Market Trends - The global smartphone shipment volume in 2022 decreased by 11.3% to 1.21 billion units, marking the lowest annual total since 2013[8] - The forecast for 2023 predicts a 1.1% decline in global smartphone shipments to 1.19 billion units, down from a previous forecast of 2.8% growth[14] - The smartphone market is expected to face growth pressure due to a lack of significant innovation in new flagship products released in 2022[12] - The International Data Corporation (IDC) predicts that a true market recovery will not occur until 2024, with a projected annual growth of 5.9% in smartphone shipments[14] Strategic Initiatives - The company plans to adopt defensive strategies to control operating expenses while seeking new opportunities to increase sales[11] - The group plans to introduce more Chinese brand smartphones and AI IoT products in emerging markets such as Russia, Central Asia, and Africa to expand sales[19] - The group aims to invest in 5G and AI technology development projects to enhance competitiveness and create long-term business value[19] - The company is investing approximately HKD 200 million in R&D for new technologies and products in the upcoming year[50] - Market expansion plans include entering three new international markets by the end of 2023, aiming to increase market share by 10%[50] - A new product line is expected to launch in Q3 2023, anticipated to contribute an additional HKD 300 million in revenue[50] Operational Efficiency - The group aims to maintain its customer base through innovation and efficiency during challenging market conditions[11] - The company has set a target to reduce operational costs by 10% through efficiency improvements and technology integration[50] - The group’s total inventory decreased from RMB 17.8 million in 2021 to RMB 8.0 million in 2022, attributed to the absence of AI and other devices[32] Customer and Employee Relations - Customer satisfaction ratings have improved to 85%, up from 78% in the previous year, indicating successful service enhancements[50] - The company plans to increase its workforce by 15% to support growth initiatives and new product development[50] - The company emphasizes the importance of maintaining strong relationships with employees, customers, and business partners to ensure sustainable development[77] - The company aims to provide competitive compensation and career development opportunities to its employees[77] Governance and Compliance - The company has established procedures to handle customer complaints promptly and effectively[77] - The company has been compliant with major laws and regulations affecting its operations during the review period[74] - The company’s financial risk management objectives and policies are outlined in the consolidated financial statements[73] - The company has adopted a share option scheme and restricted share unit plan as incentives for qualified contributors[135] - The company has established an audit committee in accordance with listing rules, consisting of independent non-executive directors[147] - The board has the authority to declare interim dividends without convening a shareholders' meeting, based on the company's profits[171] Shareholder Information - The company did not declare any dividends for the year ended December 31, 2022, consistent with the previous year[43] - The top five customers accounted for 98.09% of the company's revenue, with the largest customer contributing 52.95%[97] - The top five suppliers represented 98.60% of the cost of revenue, with the largest supplier accounting for 37.22%[97] - As of December 31, 2022, the company's distributable reserves amounted to approximately RMB 224.6 million[96] Board and Management Structure - The roles of the chairperson and the CEO are clearly separated to enhance independence and accountability[157] - The board consists of seven members, including one female member, aiming for gender equality in representation[161] - The company recognizes the importance of board diversity for corporate governance and decision-making[158] - Independent non-executive directors are tasked with reviewing the company's performance against agreed corporate objectives[188] Risk Management and Whistleblowing - A whistleblowing policy has been established to allow employees to report misconduct confidentially without fear of retaliation[177] - The whistleblowing process requires written reports to the audit committee chair, ensuring confidentiality[181] - The board has adopted an independent evaluation mechanism to ensure independent perspectives and opinions are available[184]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 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 何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 Vital I nnovatio ns Holdings Limited 維 太 創 科 控 股 有 限 公司 （於開曼群島註冊成立之有限公司） （股份代號：6133） 截至2022年12月31日止年度 末期業績公告 維太創科控股有限公司（「本公司」或「維太創科」）之董事（「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2022年12月31日止年度之經審 核綜合業績，連同截至2021年12月31日止年度之比較數字，綜合業績已獲本公司 審核委員會（「審核委員會」）審閱。 ...

Financial Performance - Total sales increased by 114.7% to approximately RMB 700 million[14] - The company's revenue increased by approximately RMB 373.4 million or 114.7% to RMB 698.9 million for the six months ended June 30, 2022, compared to approximately RMB 325.5 million for the same period in 2021[24] - Revenue from mobile and smart devices significantly increased to RMB 698.9 million, up from RMB 313.9 million in the previous year, primarily due to enhanced sales of premium smartphones in China[24] - The company reported a revenue of RMB 698,911 thousand for the six months ended June 30, 2022, representing a significant increase of 114.5% compared to RMB 325,472 thousand in the same period of 2021[73] - Gross profit for the same period was RMB 2,555 thousand, up from RMB 1,032 thousand, indicating a gross margin improvement[73] - The net loss attributable to the company was RMB 8,811 thousand, slightly improved from a loss of RMB 8,982 thousand in the previous year[73] - The company reported a pre-tax loss of RMB 8,812 thousand for the six months ended June 30, 2022, compared to a loss of RMB 8,983 thousand for the same period in 2021[99] - The company reported total other income of RMB 158,000 for the six months ended June 30, 2022, down from RMB 257,000 in 2021, a decline of 38.6%[8] Market Trends - Global smartphone shipments reached 311.2 million units in Q1 2022, a year-on-year decrease of 12.6%, and a further decrease of 14.2% in Q2 2022[14] - Global smartphone shipments are expected to decline by 3.5% to 1.31 billion units in 2022 due to weak demand[19] - The market anticipates a compound annual growth rate of 1.9% over the next five years, indicating a potential recovery[19] - The Chinese market is expected to recover and continue its growth trajectory, despite current challenges[15] Strategic Initiatives - The company aims to attract customers by sacrificing profit margins and controlling operating expenses during challenging market conditions[14] - The geopolitical uncertainties and inflation risks are impacting the business environment, necessitating strategic adjustments[9] - The company is focusing on exploring new business opportunities in the technology sector despite the difficult operating environment[18] - The company is leveraging its resources and experience to seek relevant opportunities in the technology field[18] - The company plans to invest more resources in the second half of 2022 to sell well-known premium smartphones to new customers in China[20] - The company is exploring new growth areas, including renewable energy, artificial intelligence, and electric vehicles, supported by strategic policies from the Chinese government[21] Financial Position - Cash and bank balances increased from RMB 26.7 million as of December 31, 2021, to RMB 73.6 million as of June 30, 2022[32] - The current ratio as of June 30, 2022, was 7.01, compared to 6.57 as of December 31, 2021[32] - The company's total inventory decreased from RMB 17.8 million to RMB 8.6 million during the same period[36] - The company had bank borrowings of approximately RMB 24.3 million as of June 30, 2022, compared to RMB 12.3 million as of December 31, 2021[35] - Total assets decreased to RMB 624,065 thousand from RMB 637,480 thousand at the end of 2021, indicating a reduction in asset base[76] - Current liabilities decreased to RMB 89,058 thousand from RMB 97,075 thousand, showing improved liquidity management[76] - The company’s net asset value attributable to shareholders was RMB 532,888 thousand as of June 30, 2022, down from RMB 541,699 thousand at the end of 2021[79] Corporate Governance - The board of directors recommended not to declare an interim dividend for the period[41] - Winmate Limited holds a 90% stake in the company, making it a subsidiary as of June 30, 2022[50] - As of June 30, 2022, the company has issued 850,000,000 shares, with Winmate owning 56.54% of the total shares[55] - The company has adopted sound corporate governance principles to enhance shareholder value and protect shareholder interests[62] - The audit committee, consisting of three independent non-executive directors, reviewed the interim report and the unaudited financial information for the period[71] Employee and Operational Metrics - The group employed approximately 28 employees in Hong Kong and mainland China as of June 30, 2022, a decrease from 30 employees in the previous year[58] - Total employee costs increased to RMB 6,213,000 in 2022 from RMB 4,982,000 in 2021, reflecting a rise of approximately 24.7%[114] - Management compensation for the six months ended June 30, 2022, totaled RMB 2,337,000, reflecting an increase of 15% from RMB 2,035,000 in the same period of 2021[158] - Short-term employee benefits amounted to RMB 2,259,000, up 19% from RMB 1,892,000 in the previous year[158] Debt and Financing - Bank loans increased significantly from RMB 12,279,000 to RMB 24,265,000, representing a growth of approximately 97.5%[132] - The current portion of bank loans is RMB 20,856,000, up from RMB 12,279,000, indicating a rise of 70.5%[132] - The non-current portion of bank loans is RMB 3,409,000, which was not present in the previous year[132] - Interest expenses on bank loans rose to RMB 248,000 in 2022, up from RMB 75,000 in 2021, marking an increase of 230.7%[110] - The company incurred total financing costs of RMB 293,000 in 2022, significantly higher than RMB 111,000 in 2021, representing an increase of 163.1%[110] Other Financial Metrics - The company recorded net foreign exchange gains of RMB 88,000 in 2022, a significant improvement from a loss of RMB 224,000 in 2021[7] - Trade receivables decreased significantly to RMB 40,000 as of June 30, 2022, from RMB 2,500,000 as of December 31, 2021, indicating a reduction of 98.4%[122] - The total amount of trade and other receivables was RMB 2,615,000 as of June 30, 2022, down from RMB 16,115,000 as of December 31, 2021, a decrease of 83.8%[122] - Trade payables decreased from RMB 10,698,000 to RMB 8,716,000, a reduction of approximately 18.5%[130] - The aging analysis of trade payables shows that RMB 8,536,000 is overdue for more than one year, compared to RMB 8,502,000 in the previous year[130]

Financial Performance - In 2021, the company's mobile and smart device sales revenue reached approximately RMB 651 million, equivalent to 84.2% of the 2020 sales figure[9] - The operating loss decreased from approximately RMB 97.6 million in 2020 to about RMB 20.6 million in 2021, due to strict control of operating expenses[9] - The group's revenue decreased by approximately RMB 208.5 million or 23.7% from RMB 881.1 million in the year ended December 31, 2020, to RMB 672.7 million in the year ended December 31, 2021[21] - Revenue from mobile and smart devices dropped from RMB 773.4 million to RMB 651.1 million, primarily due to a less active market and intense price competition[21] - Other income rose from RMB 148,000 in 2020 to RMB 686,000 in 2021, mainly due to consulting service revenue[25] - The group's cash and bank balances decreased from approximately RMB 54.4 million to RMB 26.7 million as of December 31, 2021[34] - The current ratio improved from 4.8 in 2020 to 6.6 in 2021, indicating better liquidity[34] - The group’s total inventory decreased from RMB 27.1 million to RMB 17.8 million due to the absence of AI and other equipment[29] - The group’s bank loans reduced from RMB 20.4 million to RMB 12.3 million, reflecting decreased invoice financing for mobile and smart devices[31] Market Trends and Projections - Global smartphone shipments in 2021 increased by 5.7% to 1.35 billion units, but faced a decline in the fourth quarter, marking the second consecutive quarter of negative growth[8] - The global smartphone market is projected to reach 1.715 billion units by 2027, with a compound annual growth rate (CAGR) of 3.7% from 2022 to 2027[13] - The company anticipates that supply and logistics challenges will continue into the first half of 2022, but expects shipment volumes to recover in the second quarter and the second half of 2022[8] - The demand for integrated circuits driven by electric vehicle production is expected to impact smartphone production capacity, continuing into 2022[8] - Consumer interest in new features such as 5G and foldable phones is increasing, which may drive future sales growth[8] Strategic Initiatives - The company is adapting its strategies to the changing global landscape, including geopolitical tensions and the ongoing impact of the COVID-19 pandemic[12] - The group expects a significant increase in sales for 2022, driven by the introduction of more Chinese brand smartphones and AI IoT products in emerging markets[16] - The group aims to align its business strategy with China's strategic direction, focusing on domestic trade opportunities[16] - The group plans to acquire a leading Chinese smartphone distributor, with the acquisition expected to be completed by mid-2022, which will significantly increase total sales[16] Corporate Governance and Structure - The company’s main business is investment holding, with significant operations based in Hong Kong[66] - The company has a diverse management team with extensive experience in finance, law, and corporate governance[63][59][62] - The board of directors has a balanced skill set and expertise to support the company's sustainable development[150] - The roles of the chairman and CEO are clearly separated to enhance independence and accountability[151] - The company recognizes the importance of board diversity for corporate governance and decision-making[152] - The board has implemented a diversity policy to attract and retain talent from a broad talent pool[154] - The company has established four committees, including the remuneration committee, nomination committee, audit committee, and risk management committee, with their responsibilities published on the company's website[184] Employee Relations and Compensation - The company employed approximately 30 employees as of December 31, 2021, offering competitive compensation packages including stock option plans[42] - The company has a strong focus on providing competitive compensation and career development opportunities for employees[72] - The remuneration committee consists of two independent non-executive directors and one executive director, ensuring that no individual director participates in decisions regarding their own remuneration[186] Risk Management and Compliance - The company’s financial risk management objectives and policies are detailed in the financial statements[69] - The company has established non-competition agreements with key individuals to prevent competition in mobile communication device development outside of China[95] - The company confirmed compliance with non-competition agreements by all covenant obligors for the year ended December 31, 2021[98] - Independent non-executive directors reviewed and confirmed that there were no violations of non-competition agreements by covenant obligors[99] Shareholder Information - As of December 31, 2021, the company's distributable reserves amounted to approximately RMB 541.7 million[90] - The top five customers accounted for 97.23% of the company's revenue, with the largest customer contributing 84.46%[91] - The top five suppliers represented 92.21% of the cost of revenue, with the largest supplier accounting for 43.80%[91] - The company has a share option plan allowing for the issuance of up to 85,000,000 shares, representing 10% of the total issued shares as of the report date[80] - The company has not made any arrangements for shareholders to waive or agree to waive any dividends as of the report date[74] - The board has the authority to declare and pay interim dividends based on the company's profits[163] - The board can also declare special dividends as deemed appropriate[164] Audit and Financial Oversight - The Audit Committee is responsible for reviewing the group's financial statements and internal control procedures[192] - The company appointed Tianjian International CPA as the new external auditor on December 29, 2021, after the resignation of the previous auditor[199] - The total remuneration for audit services provided by the external auditor was RMB 1,308,000 for the year ended December 31, 2021[200]

Financial Performance - The company reported a total loss of RMB 8,983,000 for the six months ended June 30, 2021, compared to a loss of RMB 71,336,000 for the same period in 2020, representing a significant improvement[66]. - Revenue for the first half of 2021 was RMB 325,472,000, a decrease of 8.3% from RMB 355,001,000 in the first half of 2020[66]. - Gross profit for the period was RMB 1,032,000, compared to a gross loss of RMB 61,076,000 in the previous year, indicating a turnaround in profitability[66]. - The group reported a loss before tax of RMB 8,983 thousand, significantly improved from a loss of RMB 71,336 thousand in the same period last year[92]. - The company reported a basic and diluted loss per share of RMB 1.06 for the first half of 2021, improving from RMB 8.39 in the same period of 2020[67]. Revenue and Sales - The company's mobile communication equipment sales revenue increased from RMB 247.9 million to RMB 313.9 million, representing a growth of approximately 26.6%[13]. - The global smartphone end-user sales volume grew by 26% in Q1 2021, while overall mobile phone end-user sales volume increased by 22% year-on-year[7]. - Revenue from mobile communication equipment was RMB 313,945 thousand, an increase of 26.6% from RMB 247,877 thousand in the previous year[92]. - Revenue from AI and other equipment was RMB 11,527 thousand, a decrease of 89.2% from RMB 107,124 thousand in the previous year[92]. Operational Strategy - The company adopted a strategy of sacrificing gross profit to meet customer needs during challenging market conditions[13]. - The management team believes that adjusting strategies to focus on high volume and lower gross margins will help stabilize customer relationships[7]. - The company aims to deepen its understanding of the new business environment and adopt a customer-centric approach as a key strategy[14]. - The management team is optimistic about new opportunities in the electric vehicle and artificial intelligence sectors, supported by government policies[17]. Financial Position - The group's cash and bank balances increased from RMB 54.4 million on December 31, 2020, to RMB 97.8 million on June 30, 2021[26]. - The current ratio improved to 6.1 as of June 30, 2021, compared to 4.8 on December 31, 2020[26]. - Total inventory rose from RMB 27.1 million on December 31, 2020, to RMB 36.7 million on June 30, 2021[29]. - The company’s total assets less current liabilities amounted to RMB 554,223,000 as of June 30, 2021, compared to RMB 562,499,000 at the end of 2020[70]. - The company’s total equity attributable to owners decreased to RMB 553,222,000 as of June 30, 2021, from RMB 562,204,000 at the end of 2020[73]. Employee and Operational Costs - Total employee costs amounted to RMB 4,982,000 for the six months ended June 30, 2021, down from RMB 5,196,000 in the same period of 2020, reflecting a decrease of approximately 4.1%[104]. - The company reported short-term employee benefits of RMB 1,892,000 for the six months ended June 30, 2021, down from RMB 2,519,000 for the same period in 2020, representing a decrease of approximately 24.8%[141]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the interim report and the unaudited consolidated financial information for the six months ended June 30, 2021[63]. - The company has complied with all corporate governance code provisions during the reporting period[52]. - The company confirmed that it has maintained sufficient public float as required by the listing rules as of the report date[60]. Market Outlook - The company is optimistic about growth and development in China, despite ongoing geopolitical tensions affecting international trade[14]. - The overall business environment remains challenging, with increased bargaining power for both suppliers and customers[12]. - The company plans to expand its market presence in Central and South Asia by introducing more Chinese smartphone brands and related products[16]. Asset Management - The company had other receivables amounting to RMB 2,646,000 as of June 30, 2021, down from RMB 6,206,000 as of December 31, 2020, indicating a decrease of approximately 57.5%[121]. - The company reported a total cash outflow for leases of approximately RMB 942,000 for the six months ended June 30, 2021, compared to RMB 1,387,000 for the same period in 2020, reflecting a decrease of about 32.2%[118]. - The company recognized a right-of-use asset and lease liability of approximately RMB 1,574,000 related to new office property arrangements as of June 30, 2021[143].

21:50 0 Vital Innovations Holdings Limited 維太創科控股有限公司 (Incorporated in the Cayman Islands with limited liability) (於関曼群島註冊成立的有限公司) Stock code 股份代號：6133 ANNUAL REPORT 2020 年度報告 | --- | --- | |--------------------------|-------| | | | | 目 錄 | | | 公司資料 | 2 | | 管理層討論與分析 | 4 | | 董事及高級管理人員簡介 | 10 | | 董事會報告 | 13 | | 企業管治報告 | 29 | | 獨立核數師報告 | 47 | | 綜合損益及其他全面收益表 | 54 | | 綜合財務狀況表 | 55 | | 綜合權益變動表 | 57 | | 綜合現金流量表 | 58 | | 綜合財務報表附註 | 60 | | 財務概要 | 134 | 公司資料 | --- | --- | |-------------------------------------------- ...