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，概不對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。 （股份代號：6162） （於開曼群島註冊成立的有限公司） 中國天瑞汽車內飾件有限公司 CHINA TIANRUI AUTOMOTIVE INTERIORS CO., LTD 截至2024年6月30日止六個月 之中期業績公告 | --- | --- | --- | --- | |-----------------------------|--------------|--------------------|---------------| | | | | | | | | | | | | 截至 | 6 月 30 日止六個月 | | | | 2024 年 | 2023 年 | | | | 人民幣千元 | 人民幣千元 | 變動 | | | （未經審核） | （未經審核） | | | | | | | | 收入 | 98,461 | 116,154 | –15.23% | | 毛利 | 15,796 | 23,7 ...

Financial Performance - The company recorded revenue of approximately RMB 245.8 million in 2023, representing an increase of 39.6% year on year compared to RMB 176.1 million in 2022[18]. - The profit attributable to equity shareholders of the company was approximately RMB 3.7 million in 2023, recovering from a loss of approximately RMB 26.0 million in 2022[18]. - The gross profit margin improved to 19.2% in 2023, up from 7.2% in 2022, indicating enhanced operational efficiency[12]. - Revenue from sales of heavy trucks' decorative components increased from approximately RMB151.6 million in 2022 to approximately RMB224.4 million in 2023, representing an increase of approximately 48.01%[34]. - Revenue from sales of passenger vehicles' decorative components decreased from approximately RMB24.5 million in 2022 to approximately RMB21.5 million in 2023, representing a decrease of approximately 12.4%[36]. - Gross profit increased from approximately RMB12.7 million in 2022 to approximately RMB47.1 million in 2023, representing an increase of approximately 271.7%[43]. - Other income increased from approximately RMB3.0 million in 2022 to approximately RMB4.1 million in 2023, representing an increase of approximately 36.7%[44]. - Selling and distribution expenses decreased from approximately RMB3.8 million in 2022 to approximately RMB2.8 million in 2023, representing a decrease of approximately 26.8%[45]. Market and Sales Performance - Heavy truck sales volume increased by 36% in 2023, with annual sales reaching 911,000 units, reinforcing the company's strategic focus on both passenger and commercial vehicles[18]. - The sales volume of heavy trucks in 2023 was 911,000 units, with a year-on-year increase of 36%[35]. - The heavy truck industry is expected to stabilize and rebound in 2024, supported by policies to boost market confidence and expand domestic demand[23]. - Looking ahead to 2024, the heavy truck market is expected to show a trend of lower demand initially, followed by higher demand later, while the passenger car market has significant potential supported by policy measures[97]. - The Group plans to promote the dual track operation of passenger cars and commercial vehicles, focusing on maintaining market share and expanding into external markets[97]. Assets and Liabilities - Total assets as of December 31, 2023, were RMB 528.9 million, a slight increase from RMB 518.0 million in 2022[14]. - Total liabilities increased to RMB 283.5 million in 2023 from RMB 276.5 million in 2022, reflecting ongoing investments and operational costs[14]. - Cash and cash equivalents as of 31 December 2023 were approximately RMB67.5 million, down from approximately RMB78.5 million as of 31 December 2022[55]. - Bank and other loans decreased from approximately RMB130.5 million as of 31 December 2022 to approximately RMB102.1 million as of 31 December 2023[63]. - Inventories increased from approximately RMB53.2 million as of 31 December 2022 to approximately RMB60.6 million as of 31 December 2023, representing an increase of approximately 13.9%[65]. - Capital expenditures for the year ended 31 December 2023 were approximately RMB21.4 million, down from approximately RMB28.7 million for the year ended 31 December 2022[74]. - Capital commitments for property, plant, and equipment contracted were approximately RMB22.4 million as of 31 December 2023, compared to approximately RMB10.0 million as of 31 December 2022[75]. - As of December 31, 2023, the Group's capital commitments for properties, plants, and equipment amounted to approximately RMB 22.4 million, an increase from RMB 10.0 million in 2022, representing a 124% increase[78]. Corporate Governance and Management - The company has a strong focus on corporate governance matters, as indicated by the roles of its independent directors in various committees[132]. - The company emphasizes the importance of financial management and internal controls, as demonstrated by the experience of its CFO[138]. - The company has complied with the Corporate Governance Code for the year ended December 31, 2023, except for the deviation regarding the roles of chairman and chief executive being held by the same individual[151]. - The Board of Directors has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee different areas of the company's affairs[155]. - The company has a commitment to effective and responsible leadership, acting in good faith in the best interests of the company and its shareholders[155]. - The Board's composition includes both executive and independent non-executive directors, ensuring a balance of power and authority[156]. - The daily management and operations of the Group are delegated to senior management, with responsibilities periodically reviewed by the Board[164]. - The Company has established a formal and transparent procedure for formulating policies on the remuneration of Directors and senior management[195]. Workforce and Employment - The total staff costs incurred by the Group for the year ended December 31, 2023, were approximately RMB 39.8 million, a decrease of about 4.8% compared to RMB 41.8 million in 2022, primarily due to a reduction in the number of employees[86]. - As of December 31, 2023, the Group had a total of 361 full-time employees, down from 389 in 2022, reflecting a strategic adjustment in workforce management[86]. - Directors participate in professional development courses to enhance their knowledge of corporate governance and regulatory compliance[172]. Leadership Experience - Mr. Hou Jianli, the founder and CEO, has over 30 years of experience in the manufacturing industry, having joined the Group in May 2009[109]. - Mr. Xu Yunhua has over 19 years of sales experience and was promoted to Sales General Manager of Xi'an Tianrui in February 2019[111]. - Ms. Zhang Jingrong, with over 28 years of financial management experience, became the General Manager of a subsidiary in December 2023[114]. - The management team is composed of individuals with extensive industry experience, contributing to the Group's strategic objectives and market positioning[109][111].

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 245,833,000, representing a 39.6% increase from RMB 176,094,000 in 2022[3] - Gross profit increased to RMB 47,119,000, a significant rise of 271.7% compared to RMB 12,675,000 in the previous year, with a gross margin of 19.2%[3] - The profit attributable to equity shareholders was RMB 3,746,000, a turnaround from a loss of RMB 26,010,000 in 2022, marking a 114.4% improvement[3] - Basic and diluted earnings per share improved to RMB 0.19 from a loss of RMB 1.30, reflecting a 114.6% increase[3] - Total revenue for the group reached RMB 245,833,000 in 2023, up from RMB 176,094,000 in 2022, marking an increase of 39%[33] - The group reported a pre-tax profit of RMB 3,316,000 in 2023, recovering from a loss of RMB 30,333,000 in 2022[35] - The company reported a profit of RMB 3,746,000 for the year ended December 31, 2023, compared to a loss of RMB 26,010,000 in 2022[47] Revenue Breakdown - Revenue from heavy truck decorative parts increased to RMB 224,354,000 in 2023 from RMB 151,582,000 in 2022, representing a growth of 48%[28] - Revenue from passenger car decorative parts decreased to RMB 21,479,000 in 2023 from RMB 24,512,000 in 2022, a decline of 12%[28] - Revenue from heavy truck decorative parts rose from approximately RMB 151.6 million in 2022 to approximately RMB 224.4 million in 2023, an increase of about 48.01%[61] Asset and Liability Management - Total assets as of December 31, 2023, were RMB 345,782,000, compared to RMB 306,075,000 in 2022, indicating a growth in asset base[9] - Trade receivables increased to RMB 167,045,000 from RMB 125,300,000, showing a 33.4% rise year-over-year[9] - Current liabilities decreased slightly to RMB 264,911,000 from RMB 255,869,000, indicating improved liquidity management[9] - Trade payables surged from RMB 97,805,000 in 2022 to RMB 141,437,000 in 2023, marking an increase of approximately 44.5%[53] Income and Expenses - Other income for the year was RMB 4,101,000, up from RMB 3,000,000 in 2022, reflecting a growth of 36.8%[5] - Financial costs for the group were RMB 9,351,000 in 2023, slightly up from RMB 9,198,000 in 2022[39] - Employee costs decreased from RMB 41,773,000 in 2022 to RMB 39,765,000 in 2023, a reduction of approximately 4.8%[40] - Research and development costs increased from RMB 12,151,000 in 2022 to RMB 12,608,000 in 2023, reflecting a growth of about 3.8%[43] - Selling expenses decreased from approximately RMB 3.8 million in 2022 to approximately RMB 2.8 million in 2023, a decline of about 26.8%[66] - Administrative expenses rose from approximately RMB 33.1 million in 2022 to approximately RMB 35.6 million in 2023, an increase of about 7.4%[67] Cash Flow and Dividends - The company did not declare a final dividend for the year, as indicated in the earnings announcement[3] - The company did not recommend any dividends for the year ended December 31, 2023, consistent with the previous year[57] - The company reported a net cash position of RMB 92,603,000, down from RMB 106,491,000 in the previous year, indicating a decrease in cash reserves[9] Market Outlook and Strategy - Looking ahead to 2024, the heavy truck market is expected to show a low start and high growth trend, while the passenger car market has significant potential supported by policies, aiding the growth of domestic brand market share and sales[87] - The company will continue to focus on both passenger and commercial vehicles to maintain market presence and explore external market opportunities[87] Governance and Compliance - The company has adopted the corporate governance code as a basis for its governance practices and has complied with it for the year ending December 31, 2023, with some deviations noted[89] - The independent auditor, KPMG, has agreed that the preliminary performance figures for the year ending December 31, 2023, align with the audited financial statements[91] Employee Management - The company emphasizes competitive compensation and employee training to retain talent and enhance skills[84] - As of December 31, 2023, the group had a total of 361 full-time employees, a decrease from 389 in 2022, resulting in total employee costs of approximately RMB 398 million, down about 4.8% from RMB 418 million in 2022[84] Other Information - The company has not engaged in the purchase, sale, or redemption of any listed securities during the reporting period[86] - There have been no significant post-period events affecting the company's operational and financial performance as of December 31, 2023[85] - The annual general meeting is scheduled for June 28, 2024, with a suspension of share transfer registration from June 25 to June 28, 2024, to determine voting rights[92][93]

Revenue Performance - Revenue increased from approximately RMB78.5 million for the six months ended June 30, 2022, to approximately RMB116.2 million for the six months ended June 30, 2023, representing an increase of approximately 48.0%[23] - Revenue from sales of heavy trucks' decorative components and parts increased from approximately RMB63 million for the six months ended June 30, 2022, to approximately RMB104.8 million for the six months ended June 30, 2023, representing an increase of approximately 66.4%[19] - Revenue from sales of passenger vehicles' decorative components and parts decreased from approximately RMB15.5 million for the six months ended June 30, 2022, to approximately RMB11.3 million for the six months ended June 30, 2023, representing a decrease of approximately 26.9%[20] - Heavy trucks' decorative components and parts accounted for 90.2% of total revenue in the first half of 2023, compared to 80.3% in the same period of 2022[18] - Total revenue for the six months ended June 30, 2023, was RMB116.2 million, with heavy trucks' components being the primary contributor[18] - Revenue for the six months ended June 30, 2023, increased to RMB 116,154,000, up 48% from RMB 78,502,000 in the same period of 2022[105] - Revenue from heavy trucks' decorative components and parts increased to RMB 104,832,000 in the first half of 2023, up 66.5% from RMB 63,015,000 in the same period of 2022[141] - Revenue from passenger vehicles' decorative components and parts decreased to RMB 11,322,000 in the first half of 2023, down 26.5% from RMB 15,487,000 in the same period of 2022[141] - Total revenue from contracts with customers for the first half of 2023 was RMB 116,154,000, representing a 47.9% increase compared to RMB 78,502,000 in the first half of 2022[141] Profitability and Financial Performance - Gross profit increased from approximately RMB11.3 million for the six months ended June 30, 2022, to approximately RMB23.8 million for the six months ended June 30, 2023, representing an increase of approximately 110.7%[28] - Overall gross profit margin increased from approximately 14.4% for the six months ended June 30, 2022, to approximately 20.5% for the six months ended June 30, 2023[28] - Loss for the six months ended June 30, 2023, amounted to approximately RMB3.0 million, compared to a loss of approximately RMB10.9 million for the six months ended June 30, 2022[36] - Loss attributable to equity shareholders for the period was RMB 2,956,000, a significant improvement from a loss of RMB 10,895,000 in the prior year[107] - Basic and diluted loss per share improved to RMB 0.15 from RMB 0.54 in the previous year[105] - The total reportable segment gross profit increased from RMB 11,275,000 in 2022 to RMB 23,754,000 in 2023, reflecting a growth of approximately 111%[161] - Other income increased from approximately RMB0.8 million for the six months ended June 30, 2022, to approximately RMB1.1 million for the six months ended June 30, 2023, representing an increase of approximately 33.3%[29] - The company reported finance costs of RMB 4,657,000, a decrease from RMB 5,017,000 in the previous period, indicating better debt management[105] Expenses and Cost Management - Selling expenses increased from approximately RMB3.3 million for the six months ended June 30, 2022, to approximately RMB4.5 million for the six months ended June 30, 2023, representing an increase of approximately 35.9%[30] - Administrative expenses increased from approximately RMB17.0 million for the six months ended June 30, 2022, to approximately RMB17.4 million for the six months ended June 30, 2023, representing an increase of approximately 2.4%[33] - Capital expenditures for the six months ended June 30, 2023, were approximately RMB 7.1 million, down from approximately RMB 14.8 million for the same period in 2022[57] - The company incurred RMB 7,057,000 in capital expenditures for the purchase of property, plant, and equipment during the first half of 2023, a decrease from RMB 14,751,000 in the same period of 2022[122] - Research and development costs increased to RMB 6,373,000 for the six months ended June 30, 2023, up from RMB 5,768,000 in 2022, reflecting a growth of 10.5%[172] Cash Flow and Financial Position - Cash and cash equivalents as of June 30, 2023, were approximately RMB35.8 million, down from approximately RMB78.5 million as of December 31, 2022[37] - Current assets totaled RMB 298,998,000 as of June 30, 2023, slightly down from RMB 306,075,000 at the end of 2022[110] - The company's cash and cash equivalents decreased to RMB 35,768,000 as of June 30, 2023, from RMB 78,495,000 at the beginning of the year, representing a decline of approximately 54.4%[122] - Trade and bills receivables increased to RMB 167,735,000 from RMB 125,300,000, indicating improved collection efforts[110] - Inventories rose to RMB 63,902,000, up from RMB 53,193,000, reflecting increased production or stockpiling[110] - Non-current assets decreased to RMB 200,787,000 from RMB 211,959,000, primarily due to depreciation[110] - The Group's trade receivables amounted to RMB 167,735,000, an increase from RMB 125,300,000 as of December 31, 2022, representing a growth of approximately 33.9%[192] Market Conditions and Strategic Focus - The positive market conditions for heavy trucks are supported by the recovery of the supply chain and increased employment boosting consumer confidence[11] - The increase in demand for heavy trucks is attributed to their widespread use in infrastructure construction and logistics industries[19] - Looking ahead, the Group anticipates continued growth in market demand for heavy trucks, driven by the "One Belt, One Road" policy, and plans to strengthen cooperation with existing customers while expanding its product portfolio[75] - The company continues to focus on tailored design and development solutions for automotive interior decorative products[12] Corporate Governance and Compliance - The company is committed to reviewing the separation of the roles of Chairman and Chief Executive Officer to ensure effective governance[82] - The board believes that the current arrangement of Mr. Hou Jianli holding both positions does not affect the balance of power and authority[82] - The company has adopted the Model Code for Securities Transactions, ensuring compliance by all Directors and senior management[83] - The Group maintains compliance with the relevant provisions of the Securities and Futures Ordinance throughout the reporting period[84] - The Group's financial report is prepared in accordance with International Financial Reporting Standards (IFRS) and reflects the same accounting policies as the 2022 annual financial statements[129] Employment and Staff Costs - As of June 30, 2023, the Group employed a total of 397 full-time employees, an increase from 382 employees as of June 30, 2022[64] - Total staff costs for the six months ended June 30, 2023, were approximately RMB 20.9 million, slightly down from approximately RMB 21.3 million for the same period in 2022[64] Shareholding and Ownership - Mr. Hou Jianli holds a long position of 1,500,000,000 shares, representing 75% of the company's total shareholding[89] - The entire issued share capital of H&C Group Holding Limited is owned 60% by Mr. Hou Jianli and 40% by Ms. Chen Bierui[90] - The interests of Directors in associated corporations include Mr. Hou Jianli's 100% ownership in H&C Group Holding Limited[92]

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，概不對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。 CHINA TIANRUI AUTOMOTIVE INTERIORS CO., LTD 中國天瑞汽車內飾件有限公司 （於開曼群島註冊成立的有限公司） 6162 （股份代號： ） 2023 6 30 截 至 年 月 日 止 六 個 月 之 中 期 業 績 公 告 業績摘要 6 30 截至 月 日止六個月 2023 2022 年 年 人民幣千元 人民幣千元 變動 （未經審核） （未經審核） 116,154 78,502 47.96% 收入 23,754 11,275 110.68% 毛利 20.5% 14.4% 6.1 毛利率 個百分點 (2,956) (10,895) 72.87% 權益股東應佔虧損 每股虧損 ...

Financial Performance - The Group recorded revenue of approximately RMB 176.1 million in 2022, representing a decrease of 40.5% year on year (2021: RMB 295.8 million) [19] - The loss attributable to equity shareholders of the Company was approximately RMB 26.0 million in 2022, compared to a profit of approximately RMB 7.3 million in 2021 [19] - The heavy truck market experienced a significant decline, with annual sales volume down 51.8% to 672,000 units in 2022 [19] - The gross profit margin decreased to 7.2% in 2022 from 23.9% in 2021 [14] - Revenue decreased from approximately RMB 295.8 million for the year ended 31 December 2021 to approximately RMB 176.1 million for the year ended 31 December 2022, representing a decline of approximately 40.5% [46] - Gross profit decreased from approximately RMB 70.6 million for the year ended 31 December 2021 to approximately RMB 12.7 million for the year ended 31 December 2022, a decline of approximately 82.0% [47] - Other income decreased from approximately RMB 3.9 million in 2021 to approximately RMB 3.0 million in 2022, representing a decrease of approximately 23.1% [44] - Selling and distribution expenses decreased from approximately RMB 9.0 million for the year ended 31 December 2021 to approximately RMB 3.8 million for the year ended 31 December 2022, representing a decrease of approximately 58.1% [51] - Administrative expenses decreased from approximately RMB 47.1 million for the year ended 31 December 2021 to approximately RMB 33.1 million for the year ended 31 December 2022, a decrease of approximately 29.8% [52] Assets and Liabilities - Total assets as of December 31, 2022, were RMB 518.0 million, down from RMB 572.3 million in 2021 [16] - Total liabilities decreased to RMB 276.5 million in 2022 from RMB 305.6 million in 2021 [16] - Cash and cash equivalents increased from approximately RMB 62.5 million as at 31 December 2021 to approximately RMB 78.5 million as at 31 December 2022 [61] - Bank and other loans decreased from approximately RMB 133.8 million as at 31 December 2021 to approximately RMB 130.5 million as at 31 December 2022 [63] - Inventories decreased from approximately RMB 60.2 million as at 31 December 2021 to approximately RMB 53.2 million as at 31 December 2022, representing a decrease of approximately 11.7% [65] - As of December 31, 2022, capital expenditures were approximately RMB 28.7 million, a decrease of 42.5% from RMB 49.9 million in 2021 [76][79] - As of December 31, 2022, the Group's capital commitments for property, plant, and equipment were approximately RMB 10.0 million, down from RMB 16.0 million in 2021 [77][80] Market Outlook - The heavy truck industry is expected to recover in 2023, supported by stable growth policies and the elimination of old vehicles [25] - The Group anticipates a steady recovery in China's economy for 2023, with a trend of lower demand at the beginning of the year for the heavy truck market [98][102] - The passenger car market is expected to grow significantly due to policy support, enhancing the market share and sales volume of self-owned brand passenger cars [98][102] Strategic Direction - The Group's strategic direction focuses on dual-wheel drive for both passenger and commercial vehicles [19] - The Group aims to consolidate its leading position in Northwest China's heavy truck market while actively developing the passenger vehicle market [19] - The company aims to enhance competitiveness through the implementation of the TES management system [26] - The Group plans to promote the dual track operation of passenger cars and commercial vehicles while expanding the external market [98][102] - The Group will continue to enhance the "TES" (Tianrui Excellence Management System) to standardize group management practices [99][103] Corporate Governance - The company is committed to maintaining high standards of corporate governance with independent directors overseeing key committees [115] - The company has a strong governance structure with independent directors on its audit and nomination committees [125][128] - The Group is focused on enhancing corporate governance and financial management practices [132] - The company has adopted the Corporate Governance Code as the basis for its governance practices, with a noted deviation regarding the roles of chairman and chief executive being held by the same individual [147] - The Board of Directors consists of executive and independent non-executive directors, with Mr. Hou Jianli serving as chairman [153] - The Company has appointed three Independent Non-executive Directors, representing more than one-third of the Board, ensuring compliance with Listing Rules [174] - The Audit Committee was established on December 18, 2018, to oversee financial reporting systems, risk management, and internal control procedures [183] - The Board is responsible for developing and monitoring corporate governance policies and practices, ensuring compliance with legal and regulatory requirements [161] Management Team - The company has a strong management team with diverse backgrounds in manufacturing, sales, law, and education, enhancing its strategic capabilities [112] - The company aims to leverage its experienced leadership to drive growth and innovation in the automotive interiors sector [112] - The Group's management team includes experienced professionals with backgrounds in finance, accounting, and education [131][135] - The management team is committed to driving growth and expanding market presence through effective leadership [131] Directors and Committees - The Company established the Nomination Committee on December 18, 2018, to review the structure, size, and composition of the Board regularly [200] - The Audit Committee assessed the effectiveness of the Company's internal audit function and the accounting and financial reporting matters [185] - The Remuneration Committee ensures that none of the Directors determine their own remuneration [189] - The Company has a formal and transparent procedure for formulating policies on the remuneration of Directors and senior management [192] - The Audit Committee reviewed the risk management and internal control systems of the Company [185]

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，概不對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。 CHINA TIANRUI AUTOMOTIVE INTERIORS CO., LTD 中國天瑞汽車內飾件有限公司 （於開曼群島註冊成立的有限公司） 6162 （股份代號： ） 2022 12 31 截至 年 月 日止年度 之年度業績公告 業績摘要 12 31 截至 月 日止年度 2022 2021 年 年 人民幣千元 人民幣千元 變動 176,094 295,776 -40.5% 收入 12,675 70,553 -82.0% 毛利 7.2% 23.9% -16.7 毛利率 個百分點 (26,010) 7,329 -454.9% 公司權益股東應佔（虧損）╱溢利 每股（虧損）╱盈利 (1.3) 0.37 -451.4% 基本及攤薄（人民幣分） ...

Revenue Performance - Revenue from sales of heavy trucks' decorative components and parts decreased from approximately RMB204.9 million for the six months ended 30 June 2021 to approximately RMB63.0 million for the six months ended 30 June 2022, representing a decrease of approximately 69.2%[16] - Revenue breakdown for the six months ended 30 June 2022 shows that heavy trucks' decorative components accounted for RMB63.0 million (80.3%) and passenger vehicles' decorative components accounted for RMB15.5 million (19.7%) of total revenue[15] - Revenue from sales of passenger vehicle decorative components increased from approximately RMB12.1 million for the six months ended 30 June 2021 to approximately RMB15.5 million for the six months ended 30 June 2022, representing an increase of approximately 28.5%[17] - Overall revenue decreased from approximately RMB217.0 million for the six months ended 30 June 2021 to approximately RMB78.5 million for the six months ended 30 June 2022, representing a decrease of approximately 63.8%[21] - Total revenue from contracts with customers for the six months ended June 30, 2022, was RMB 78,502,000, a decrease of 64% compared to RMB 216,980,000 for the same period in 2021[124] Market Trends - During the six months ended 30 June 2022, the nationwide sales volume of heavy trucks was 380,000 units, representing a decrease of approximately 63.6% over the same period of last year[16] - The heavy truck market experienced "six consecutive drops" in sales from January to June 2022, with the first four months hitting a new low compared to the same periods in recent years[10] - The heavy truck market is anticipated to recover in the second half of 2022 with the release of favorable policies and economic recovery[10] - The year 2022 is expected to be a very difficult year for the heavy truck market, but the second half may see a new "inflection point" in recovery due to economic stabilization and favorable policies[10] - The heavy truck industry has experienced a sales slump since July 2021, but sales volume is expected to recover in the second half of the year due to favorable factors such as stable growth and infrastructure stimulus[56] Financial Performance - Gross profit decreased from approximately RMB63.2 million for the six months ended 30 June 2021 to approximately RMB11.3 million for the six months ended 30 June 2022, representing a decrease of approximately 82.2%[23] - Gross profit margin decreased from approximately 29.1% for the six months ended 30 June 2021 to approximately 14.4% for the six months ended 30 June 2022[23] - The loss amounted to approximately RMB10.9 million for the six months ended 30 June 2022, compared to a profit of approximately RMB23.8 million for the six months ended 30 June 2021[29] - Basic and diluted loss per share was RMB 0.54, compared to earnings of RMB 1.19 per share in 2021[77] - Total comprehensive income attributable to equity shareholders for the period was RMB (10,445,000), down from RMB 23,715,000 in the previous year, indicating a decrease of approximately 144%[84] Cost Management - Administrative expenses decreased from approximately RMB24.8 million for the six months ended 30 June 2021 to approximately RMB17.0 million for the six months ended 30 June 2022, representing a decrease of approximately 31.6%[26] - Selling and distribution expenses were RMB 3,337,000, a decrease from RMB 5,950,000 in the previous year[77] - Research and development costs decreased to RMB 5,768 in the first half of 2022 from RMB 10,269 in 2021, a decrease of 43.5%[150] - The Group's total staff costs for the six months ended June 30, 2022, were approximately RMB 21.3 million, representing a decrease of approximately 29.9% compared to RMB 30.4 million for the same period in 2021[54] Cash Flow and Liquidity - Cash and cash equivalents were approximately RMB59.6 million as of 30 June 2022, compared to approximately RMB62.5 million as of 31 December 2021[30] - Current assets decreased to RMB 285,253,000 as of June 30, 2022, from RMB 357,770,000 at the end of 2021, reflecting a decline of about 20%[88] - Cash at bank and on hand decreased significantly to RMB 59,604,000 from RMB 100,850,000, representing a decline of around 41%[88] - Cash generated from operating activities was RMB 8,238,000, a significant improvement compared to a cash outflow of RMB (5,356,000) in the prior year[103] Corporate Governance - The company has adopted the Corporate Governance Code as the basis for its governance practices since the listing date[58] - The company has confirmed compliance with the Model Code for Securities Transactions by Directors throughout the reporting period[63] - The board believes that having the same individual serve as both chairman and CEO ensures consistent leadership and effective strategic planning[62] - The company will continue to review whether the roles of chairman and CEO should be separated in the future[62] Strategic Initiatives - The company offers design and development solutions tailored to meet customers' specific requirements for automotive interior decorative products[11] - The Group plans to strengthen new product development with existing customers and expand its customer base for passenger vehicles[56] - The Group will promote the dual track operation of "commercial vehicle + passenger vehicle" steadily and enhance its core competitiveness[56] - The company is leveraging the Western Development strategy in Northwest China to stimulate infrastructure development in transportation, energy, and telecommunications[59] Employee and Staffing - The Group had a total of 364 full-time employees as of June 30, 2022, down from 528 employees as of June 30, 2021[54] - Payables for staff-related costs decreased slightly to RMB 1,854,000 from RMB 1,885,000, while payables for acquisitions of property, plant, and equipment increased to RMB 28,209,000 from RMB 26,581,000, indicating a rise of about 6.1%[16] Taxation and Compliance - The Group's subsidiaries in the PRC are subject to a corporate income tax rate of 25% for the six months ended June 30, 2022[153] - Certain subsidiaries in the PRC enjoy a preferential corporate income tax rate of 15% due to tax benefits under the Western Region Development Plan[153] Impact of COVID-19 - The ongoing COVID-19 pandemic has created uncertainties in the Group's operating environment, impacting its operations and financial position[198] - The Group has implemented contingency measures in response to the economic downturn driven by the pandemic, focusing on cost reduction and efficiency improvements[198]

Financial Performance - The Group recorded revenue of approximately RMB295.8 million in 2021, representing a decrease of 22.1% year on year compared to RMB379.6 million in 2020[18]. - Profit attributable to equity shareholders of the Company was approximately RMB7.3 million in 2021, down from approximately RMB50.9 million in 2020[18]. - Total revenue decreased from approximately RMB379.6 million in 2020 to approximately RMB295.8 million in 2021, representing a decrease of approximately 22.1%[46]. - Gross profit decreased from approximately RMB116.9 million in 2020 to approximately RMB70.6 million in 2021, representing a decrease of approximately 39.6%[44]. - Overall gross profit margin decreased by approximately 6.9% in 2021 compared to 2020, mainly due to lower selling prices and higher raw material costs[44]. - Other income decreased from approximately RMB6.5 million in 2020 to approximately RMB3.9 million in 2021, representing a decrease of approximately 39.7%[48]. - Selling and distribution expenses decreased from approximately RMB9.7 million in 2020 to approximately RMB9.0 million in 2021, representing a decrease of approximately 7.5%[51]. - Administrative expenses increased from approximately RMB41.3 million in 2020 to approximately RMB47.1 million in 2021, representing an increase of 14.2%[53]. - Finance costs decreased from approximately RMB9.8 million in 2020 to approximately RMB9.4 million in 2021, representing a decrease of approximately 4.0%[55]. - Income tax expense decreased from approximately RMB12.4 million in 2020 to approximately RMB1.6 million in 2021, mainly due to a decrease in pre-tax profit[55]. - Profit for the year decreased from approximately RMB50.9 million for the year ended 31 December 2020 to approximately RMB7.3 million for the year ended 31 December 2021[57]. Production and Sales - The Group experienced a record high national monthly production of heavy trucks at 175,000 units in the first half of 2021, followed by a record low of less than 37,000 units in the second half[18]. - Single vehicle sales of the Group amounted to RMB2,025 in 2021, slightly higher than in 2020[18]. - Revenue from sales of heavy trucks' decorative components decreased from approximately RMB332.4 million in 2020 to approximately RMB269.2 million in 2021, representing a decrease of approximately 19.0%[39]. - Revenue from sales of passenger vehicles' decorative components decreased from approximately RMB47.1 million in 2020 to approximately RMB26.6 million in 2021, representing a decrease of approximately 43.6%[42]. - The sales of heavy trucks are anticipated to show an upward trend in 2022 due to the full switch to new emission standards[31]. Assets and Liabilities - Total assets as of December 31, 2021, were RMB572.3 million, down from RMB625.9 million in 2020[13]. - Total liabilities decreased to RMB305.6 million in 2021 from RMB355.8 million in 2020[13]. - Total equity as of December 31, 2021, was RMB266.7 million, slightly down from RMB270.1 million in 2020[13]. - Cash and cash equivalents of the Group were approximately RMB62.5 million and RMB56.6 million as at 31 December 2021 and 2020, respectively[57]. - Bank and other loans increased from approximately RMB96.0 million as at 31 December 2020 to approximately RMB133.8 million as at 31 December 2021[57]. - Gearing ratio as at 31 December 2020 and 2021 were 35.6% and 50.2%, respectively[57]. - Inventories decreased from approximately RMB78.5 million as at 31 December 2020 to approximately RMB60.2 million as at 31 December 2021, representing a decrease of approximately 23.2%[59]. - Prepayment for acquisitions of property, plant and equipment decreased from approximately RMB9.9 million for the year ended 31 December 2020 to approximately RMB6.3 million for the year ended 31 December 2021, representing a decrease of approximately 36.8%[62]. - Capital expenditures were approximately RMB49.9 million for the year ended 31 December 2021, compared to approximately RMB36.9 million in 2020[67]. - Capital commitments in respect of property, plant and equipment contracted for approximately RMB16.0 million as at 31 December 2021, down from approximately RMB26.5 million in 2020[67]. Management and Governance - Mr. Hou Jianli is the controlling shareholder, executive director, chairman, CEO, and general manager of the company[101]. - The company has a strong focus on research and development in material science, with several important scientific research projects hosted by its directors[94]. - The company is expanding its board with experienced independent non-executive directors to enhance governance and oversight[89][99]. - The company aims to leverage the expertise of its directors in various fields, including law, education, and finance, to drive strategic initiatives[89][99][94]. - The company is committed to maintaining high standards of corporate governance through its independent committees[89][94]. - The Company has appointed three Independent Non-executive Directors, representing more than one-third of the Board, ensuring adequate control and balance[144]. - The Audit Committee's primary duties include making recommendations on the appointment of external auditors and overseeing internal control procedures[152]. - The Company encourages Directors to participate in professional development courses related to corporate governance and compliance[141]. - The Company has established clear written terms of reference for each Board Committee, approved by the Board[146]. - The Company has adopted the Corporate Governance Code as the basis for its governance practices, with a deviation regarding the roles of chairman and CEO being held by the same individual, Mr. Hou Jianli[122]. Future Outlook - Looking ahead to 2022, the heavy truck market is expected to shift from incremental competition to stock competition, with potential growth in sales due to policy support[25]. - The Group plans to promote dual wheel drive for passenger and commercial vehicles while expanding its market presence[25]. - The Group aims to enhance its Tianrui Excellent Management System Project (TES) to standardize management practices across the organization[25]. - For 2022, the Group plans to expand new customer bases and enhance product development with existing customers to improve core competitiveness[77]. - New projects obtained include rearview mirror and bumper assembly, with the Standard Operating Procedure (SOP) successfully implemented[77]. - The Group aims to focus on standardization, automation, informatization, and systematic construction to boost sales revenue growth and improve management systems[80]. - The company provided guidance for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion[112]. - New product launches are expected to contribute an additional 200 million in revenue, with a focus on innovative technologies[112]. - The company is expanding its market presence in Southeast Asia, targeting a 30% market share by 2025[112]. - A recent acquisition of a local competitor is anticipated to enhance operational efficiency and increase market penetration[112]. - The company is investing 50 million in R&D for new technologies aimed at improving product quality and reducing costs[112]. - The management team emphasized a commitment to sustainability, with plans to reduce carbon emissions by 15% by 2025[112].

Revenue Performance - For the six months ended June 30, 2021, total revenue was RMB 216,980,000, an increase of 21.4% from RMB 178,717,000 in the same period of 2020[20]. - Revenue from heavy truck decorative components was RMB 204,924,000, accounting for 94.4% of total revenue, compared to 89.6% in the same period of 2020[20]. - Revenue from passenger vehicle decorative components was RMB 12,056,000, representing 5.6% of total revenue, down from 10.4% in the same period of 2020[20]. - Overall revenue increased from approximately RMB178.7 million for the six months ended 30 June 2020 to approximately RMB217.0 million for the six months ended 30 June 2021, representing an increase of approximately 21.4%[28]. - Revenue from sales of heavy truck decorative components increased from approximately RMB160.2 million for the six months ended 30 June 2020 to approximately RMB204.9 million for the six months ended 30 June 2021, representing an increase of approximately 27.9%[22]. - Revenue from sales of passenger vehicle decorative components decreased from approximately RMB18.5 million for the six months ended 30 June 2020 to approximately RMB12.1 million for the six months ended 30 June 2021, representing a decrease of approximately 34.9%[25]. Profitability and Expenses - Profit for the period decreased from approximately RMB31.7 million for the six months ended 30 June 2020 to approximately RMB23.8 million for the six months ended 30 June 2021, representing a decrease of approximately 24.8%[43]. - Gross profit increased from approximately RMB63.0 million for the six months ended 30 June 2020 to approximately RMB63.2 million for the six months ended 30 June 2021, representing an increase of approximately 0.3%[27]. - Overall gross profit margin decreased from approximately 35.3% for the six months ended 30 June 2020 to approximately 29.1% for the six months ended 30 June 2021[27]. - Selling expenses increased from approximately RMB5.1 million for the six months ended 30 June 2020 to approximately RMB6.0 million for the six months ended 30 June 2021, representing an increase of approximately 16.5%[34]. - Administrative expenses increased from approximately RMB18.9 million for the six months ended 30 June 2020 to approximately RMB24.8 million for the six months ended 30 June 2021, representing an increase of approximately 31.3%[35]. - Finance costs increased from approximately RMB3.2 million for the six months ended 30 June 2020 to approximately RMB4.8 million for the six months ended 30 June 2021, representing an increase of approximately 49.1%[36]. - Other income decreased from approximately RMB3.9 million for the six months ended 30 June 2020 to approximately RMB1.1 million for the six months ended 30 June 2021, representing a decrease of approximately 72.8%[33]. Cash Flow and Financial Position - The Group's cash and cash equivalents were approximately RMB26.2 million as of 30 June 2021, down from RMB56.6 million as of 31 December 2020[48]. - The net decrease in cash and cash equivalents for the first half of 2021 was RMB (30,393,000), compared to a decrease of RMB (15,985,000) in the same period of 2020, indicating a decline of approximately 90.1%[121]. - Cash at bank and on hand significantly decreased to RMB 26,209,000 from RMB 97,484,000, a drop of 73.1%[102]. - Current assets decreased to RMB 369,099,000 from RMB 443,805,000, representing a decline of 16.8%[102]. - Total equity as of June 30, 2021, was RMB 283,763,000, up 5.1% from RMB 270,072,000 at the end of 2020[104]. - The Group's trade and bills receivables amounted to RMB269.4 million, with approximately 40.3% due from the largest customers[46]. Market and Industry Outlook - The automotive market is expected to continue steady development under the new "dual circulation" development pattern[13]. - The effective control of the epidemic and the stabilization of the national economy are expected to benefit the automotive industry[13]. - Adjustments to macroeconomic policy are anticipated to continue supporting the automotive industry in 2021[13]. - The impact of the full switch to new emission standards in July 2021 may lead to a downward trend in heavy truck sales throughout the year[13]. - The Group's future prospects are bolstered by the Shaanxi Government's plan to raise a special industrial fund of RMB4.0 billion to boost the automotive industry[72]. Employee and Operational Insights - The average number of employees for the six months ended June 30, 2021, was 620, a decrease from 628 in the same period in 2020[61]. - Total staff costs for the Group were approximately RMB30.4 million for the six months ended June 30, 2021, representing an increase of approximately 44.8% compared to RMB21.0 million in the same period in 2020[61]. - The increase in staff costs was attributed to higher direct labor costs due to increased product sales, salary increments from project expansions and R&D investments, and the absence of government exemptions for retirement plan contributions due to COVID-19[61]. - The Group emphasizes employee training and offers competitive remuneration packages to retain elite employees[63]. - The Group's remuneration policy is based on employee performance, qualifications, and market comparability, with annual reviews according to industry benchmarks and financial results[62]. Compliance and Governance - All Directors and senior management confirmed compliance with the Model Code for Securities Transactions throughout the reporting period[75]. - The audit committee reviewed the interim results for the six months ended June 30, 2021, ensuring compliance with accounting principles and internal controls[85]. - The Group's financial report is prepared in accordance with International Accounting Standards (IAS) 34, ensuring transparency and adherence to regulatory requirements[128].