KPMG Huazhen | | P 8th Floor, KPMG Tower Oriental Plaza 1 East Chang An Avenue Beijing 100738 China Telephone +86 (10) 8508 5000 +86 (10) 8518 5111 Fax Internet kpmg.com/cn =马威华振会计师事务所 特殊普通合伙) 中国北京 东长安街1号 东方广场毕马威大楼8层 邮政编码:100738 电话 +86 (10) 8508 5000 传真 +86 (10) 8518 5111 网址 kpmg.com/cn 内部控制审计报告 毕马威华振审字第 2404503 号 长飞光纤光缆股份有限公司全体股东： 按照《企业内部控制审计指引》及中国注册会计师执业准则的相关要求,我们审计了长飞 光纤光缆股份有限公司 (以下简称"贵公司"）2023 年 12 月 31 日的财务报告内部控制的有效 性。 一、企业对内部熔制的责任 按照《企业内部控制基本规范》、《企业内部控制应用指引》、《企业内部控制评价指 引》的规定，建立健全和有效实施内部控制，并评价其有效性是贵公司董 ...

[Key Financial Data](index=1&type=section&id=%E4%B8%80%E3%80%81%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE) The company's operating revenue and net profit attributable to shareholders decreased year-on-year, but year-to-date net profit attributable to parent company shareholders slightly increased, while total assets and equity grew [Key Accounting Data and Financial Indicators](index=1&type=section&id=%28%E4%B8%80%29%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company's operating revenue and net profit declined year-on-year, while year-to-date net profit attributable to parent company shareholders saw a slight increase Key Financial Data for Q3 2023 and Year-to-Date | Item | Current Period (3 months) (RMB) | YoY Change (%) | Year-to-Date (9 months) (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 3,114,139,105 | -19.14 | 10,029,322,250 | -2.08 | | Net Profit Attributable to Shareholders of Listed Company | 273,575,652 | -21.84 | 880,590,578 | 0.59 | | Net Profit Attributable to Shareholders of Listed Company Excluding Non-Recurring Gains and Losses | 146,366,413 | -55.33 | 710,021,393 | -10.23 | | Net Cash Flow from Operating Activities | N/A | N/A | 670,377,436 | -28.95 | | Basic Earnings Per Share (RMB/share) | 0.36 | -23.40 | 1.16 | 0 | | Diluted Earnings Per Share (RMB/share) | 0.36 | -23.40 | 1.16 | 0 | | Weighted Average Return on Net Assets (%) | 2.48 | decreased by 1.14 percentage points | 8.36 | decreased by 0.44 percentage points | Key Balance Sheet Indicators as of September 30, 2023 | Item | End of Current Period (RMB) | End of Prior Year (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 29,640,189,577 | 28,203,306,647 | 5.09 | | Total Equity Attributable to Shareholders of Listed Company | 11,403,795,776 | 10,144,245,884 | 12.42 | [Changes and Reasons for Key Accounting Data and Financial Indicators](index=2&type=section&id=%28%E4%B8%89%29%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E3%80%81%E5%8E%9F%E5%9B%A0) Net profit excluding non-recurring gains and losses decreased by 55.33% year-on-year, primarily due to reduced operating revenue - Net profit attributable to shareholders excluding non-recurring gains and losses **decreased by 55.33%** year-on-year in the current period[7](index=7&type=chunk) - This was primarily due to a decrease in the company's operating revenue compared to the same period last year[7](index=7&type=chunk) [Non-Recurring Gains and Losses Items and Amounts](index=2&type=section&id=%E4%BA%8C%E9%9D%9E%E7%BB%8F%E5%B8%B8%E6%80%A7%E6%8D%9F%E7%9B%8A%E9%A1%B9%E7%9B%AE%E5%92%8C%E9%87%91%E9%A2%9D) Total non-recurring gains and losses amounted to **RMB 127.21 million**, primarily from government subsidies and other defined items Non-Recurring Gains and Losses for Q3 2023 and Year-to-Date | Item | Amount for Current Period (RMB) | Amount Year-to-Date (RMB) | | :--- | :--- | :--- | | Gains and Losses on Disposal of Non-Current Assets | 962,034 | 2,418,670 | | Government Subsidies Included in Current Profit and Loss | 55,158,033 | 117,457,364 | | Gains and Losses from Fair Value Changes and Investment Income | 2,092,098 | 21,809,144 | | Other Non-Operating Income and Expenses | 7,472,094 | 820,291 | | Other Gains and Losses Items Defined as Non-Recurring | 36,490,117 | 137,673,827 | | Less: Income Tax Impact | -5,167,671 | -33,743,751 | | Impact on Minority Interests (After Tax) | 30,202,534 | -75,866,360 | | **Total** | **127,209,239** | **170,569,185** | [Total Number of Common Shareholders and Top Ten Shareholders' Holdings](index=3&type=section&id=%28%E4%B8%80%29%E6%99%AE%E9%80%9A%E8%82%A1%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%92%8C%E8%A1%A8%E5%86%B3%E6%9D%83%E6%81%A2%E5%A4%8D%E7%9A%84%E4%BC%98%E5%85%88%E8%82%A1%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) As of the reporting period end, the company had **24,371 common shareholders**, with the top two holding **23.73% each** and no pledged shares - The total number of common shareholders at the end of the reporting period was **24,371**[9](index=9&type=chunk) Top 10 Shareholders' Holdings | Shareholder Name | Shareholder Type | Number of Shares Held (shares) | Shareholding (%) | Share Status | Pledged Quantity (shares) | | :--- | :--- | :--- | :--- | :--- | :--- | | China Huaxin Post and Telecommunication Technology Co., Ltd. | State-owned Legal Person | 179,827,794 | 23.73 | None | 0 | | Draka Communications Netherlands B.V. | Overseas Legal Person | 179,827,794 | 23.73 | None | 0 | | HKSCC Nominees Limited | Overseas Legal Person | 171,613,849 | 22.64 | None | 0 | | Wuhan Yangtze Communications Industry Group Co., Ltd. | State-owned Legal Person | 119,937,010 | 15.82 | None | 0 | | Ningbo Ruitu Enterprise Management Consulting Partnership (Limited Partnership) | Other | 7,914,855 | 1.04 | None | 0 | | CRRC Trust Co., Ltd. - CRRC Trust Shengli No. 5 Single Fund Trust | Other | 5,386,676 | 0.71 | None | 0 | | Ningbo Ruiying Enterprise Management Consulting Partnership (Limited Partnership) | Other | 4,572,500 | 0.60 | None | 0 | | Hong Kong Securities Clearing Company Limited | Overseas Legal Person | 4,167,972 | 0.55 | None | 0 | | Shaanxi International Trust Co., Ltd. - Shanguotou Wealth No. 59 Single Fund Trust | Other | 2,496,466 | 0.33 | None | 0 | | Shanghai Zhentou Asset Management Co., Ltd. - Zhentou Chuangxin No. 45 Private Securities Investment Fund | Other | 2,141,419 | 0.28 | None | 0 | - Ningbo Ruitu Enterprise Management Consulting Partnership (Limited Partnership) and Ningbo Ruiying Enterprise Management Consulting Partnership (Limited Partnership) have an **associated relationship**[10](index=10&type=chunk) [Other Reminders](index=4&type=section&id=%E4%B8%89%E3%80%81%20%E5%85%B6%E4%BB%96%E6%8F%90%E9%86%92%E4%BA%8B%E9%A1%B9) The company has no other significant operating information requiring special attention from investors during the reporting period - The company has no other important information requiring investor attention during the reporting period[11](index=11&type=chunk) [Financial Statements](index=5&type=section&id=%28%E4%BA%8C%29%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) The financial statements reveal changes in assets, liabilities, and equity, alongside shifts in revenue, expenses, and cash flows across operating, investing, and financing activities [Consolidated Balance Sheet](index=5&type=section&id=%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of September 30, 2023, total assets increased by **5.09%** and equity attributable to shareholders grew by **12.42%**, driven by higher long-term equity investments and increased liabilities Consolidated Balance Sheet Key Item Changes (September 30, 2023 vs December 31, 2022) | Item | 2023年9月30日 (RMB) | 2022年12月31日 (RMB) | Change (RMB) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | **Total Assets** | **29,640,189,577** | **28,203,306,647** | **1,436,882,930** | **5.09** | | Cash and Cash Equivalents | 4,173,658,219 | 4,323,893,889 | -150,235,670 | -3.47 | | Financial Assets Held for Trading | 1,134,362,216 | 1,347,947,294 | -213,585,078 | -15.85 | | Accounts Receivable | 5,361,050,737 | 5,035,236,390 | 325,814,347 | 6.47 | | Long-Term Equity Investments | 3,350,581,237 | 1,828,164,430 | 1,522,416,807 | 83.28 | | Fixed Assets | 6,069,537,613 | 5,749,362,064 | 320,175,549 | 5.57 | | Construction in Progress | 910,373,058 | 1,644,132,850 | -733,759,792 | -44.63 | | **Total Liabilities** | **14,866,112,405** | **13,666,245,433** | **1,199,866,972** | **8.78** | | Short-Term Borrowings | 2,395,899,135 | 1,754,882,426 | 641,016,709 | 36.53 | | Accounts Payable | 1,671,153,986 | 2,031,652,081 | -360,498,095 | -17.74 | | Non-Current Liabilities Due Within One Year | 1,239,169,261 | 732,895,951 | 506,273,310 | 69.08 | | Long-Term Borrowings | 4,807,714,062 | 3,950,988,482 | 856,725,580 | 21.68 | | **Total Equity** | **14,774,077,172** | **14,537,061,214** | **237,015,958** | **1.63** | | Total Equity Attributable to Parent Company Shareholders | 11,403,795,776 | 10,144,245,884 | 1,259,549,892 | 12.42 | | Minority Interests | 3,370,281,396 | 4,392,815,330 | -1,022,533,934 | -23.28 | - Long-term equity investments significantly increased by **83.28%**, while construction in progress decreased by **44.63%**, indicating a shift in the company's investment structure[15](index=15&type=chunk)[17](index=17&type=chunk) - Short-term borrowings and non-current liabilities due within one year significantly increased, alongside a substantial rise in long-term borrowings, reflecting an **expansion in the company's financing scale**[17](index=17&type=chunk) [Consolidated Income Statement](index=8&type=section&id=%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In the first three quarters of 2023, total operating revenue slightly decreased, but net profit attributable to parent company shareholders saw a small increase, supported by higher investment and other income despite rising expenses Consolidated Income Statement Key Item Changes (First Three Quarters 2023 vs First Three Quarters 2022) | Item | 2023年前三季度 (RMB) | 2022年前三季度 (RMB) | Change (RMB) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenue | 10,029,322,250 | 10,242,432,745 | -213,110,495 | -2.08 | | Operating Cost | 7,423,871,437 | 7,864,954,165 | -441,082,728 | -5.61 | | Selling Expenses | 347,720,278 | 271,887,697 | 75,832,581 | 27.89 | | General and Administrative Expenses | 738,377,605 | 534,806,285 | 203,571,320 | 38.07 | | Research and Development Expenses | 558,709,760 | 544,429,763 | 14,279,997 | 2.62 | | Financial Expenses | 101,181,229 | 60,358,156 | 40,823,073 | 67.63 | | Other Income | 120,827,864 | 66,839,162 | 53,988,702 | 80.77 | | Investment Income | 136,865,126 | 45,749,409 | 91,115,717 | 199.17 | | Credit Impairment Losses | -114,445,040 | -64,236,517 | -50,208,523 | 78.16 | | Operating Profit | 891,610,052 | 913,851,851 | -22,241,799 | -2.43 | | Total Profit | 892,430,451 | 913,629,008 | -21,198,557 | -2.32 | | Net Profit | 825,270,755 | 863,827,194 | -38,556,439 | -4.46 | | Net Profit Attributable to Parent Company Shareholders | 880,590,578 | 875,424,913 | 5,165,665 | 0.59 | | Minority Shareholder Profit/Loss | -55,319,823 | -11,597,719 | -43,722,104 | 376.99 | - Selling, general and administrative, and financial expenses increased by **27.89%**, **38.07%**, and **67.63%** year-on-year, respectively, indicating rising operating and financing costs[21](index=21&type=chunk) - Investment income surged by **199.17%**, offsetting some of the decline in operating revenue and increased expenses, resulting in a slight increase in net profit attributable to parent company shareholders[21](index=21&type=chunk)[22](index=22&type=chunk) [Consolidated Cash Flow Statement](index=10&type=section&id=%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In the first three quarters of 2023, net cash flow from operating activities decreased by **28.95%**, investing cash outflow expanded significantly, and financing cash flow also declined, resulting in a negative net increase in cash and cash equivalents Consolidated Cash Flow Statement Key Item Changes (First Three Quarters 2023 vs First Three Quarters 2022) | Item | 2023年前三季度 (RMB) | 2022年前三季度 (RMB) | Change (RMB) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 670,377,436 | 943,500,233 | -273,122,797 | -28.95 | | Cash Received from Sales of Goods and Services | 10,744,056,883 | 9,061,429,375 | 1,682,627,508 | 18.57 | | Cash Paid for Goods and Services | 8,833,401,099 | 7,194,248,311 | 1,639,152,788 | 22.78 | | Cash Paid to and for Employees | 1,255,261,189 | 1,007,008,939 | 248,252,250 | 24.65 | | Net Cash Flow from Investing Activities | -2,269,539,134 | -1,536,714,650 | -732,824,484 | 47.69 | | Cash Paid for Acquisition of Fixed Assets, Intangible Assets, and Other Long-Term Assets | 1,347,570,855 | 1,446,972,268 | -99,401,413 | -6.87 | | Cash Paid for Investments | 1,571,856,129 | 2,050,204,397 | -478,348,268 | -23.33 | | Net Cash Paid for Acquisition of Subsidiaries and Other Business Units | 490,791,750 | 355,687,052 | 135,104,698 | 37.99 | | Net Cash Flow from Financing Activities | 1,483,380,887 | 2,085,348,919 | -601,968,032 | -28.87 | | Cash Received from Borrowings | 4,344,203,915 | 5,298,775,127 | -954,571,212 | -18.01 | | Cash Paid for Debt Repayment | 2,344,531,807 | 2,971,667,942 | -627,136,135 | -21.10 | | Net Increase in Cash and Cash Equivalents | -85,800,142 | 1,578,292,778 | -1,664,092,920 | -105.44 | - While cash inflows from operating activities increased, significant increases in cash paid for goods and services and to employees led to a **decrease in net operating cash flow**[23](index=23&type=chunk) - Net cash outflow from investing activities expanded, primarily due to increased cash paid for acquiring subsidiaries and other business units, alongside sustained high levels of cash paid for investments[24](index=24&type=chunk) - Net cash flow from financing activities decreased, influenced by a combination of reduced cash received from borrowings and lower cash paid for debt repayment[24](index=24&type=chunk)

Financial Performance - The company's operating revenue for Q3 2023 was RMB 3,114,139,105, a decrease of 19.14% compared to the same period last year[4]. - Net profit attributable to shareholders for Q3 2023 was RMB 273,575,652, down 21.84% year-on-year[4]. - The net profit after deducting non-recurring gains and losses for Q3 2023 was RMB 146,366,413, a significant decline of 55.33% compared to the previous year[4][6]. - The total net profit for the first nine months of 2023 was RMB 880,590,578, showing a slight increase of 0.59% year-on-year[4]. - Net profit for the same period was RMB 825,270,755, down from RMB 863,827,194 in 2022, reflecting a decline of 4.46%[13]. - Net profit attributable to shareholders for the nine months ended September 30, 2023, was RMB 880,590,578, a slight increase from RMB 875,424,913 in the same period of 2022, reflecting a growth of 0.13%[14]. - Total comprehensive income attributable to shareholders for the nine months ended September 30, 2023, was RMB 957,019,446, compared to RMB 904,910,913 in 2022, indicating an increase of 5.77%[14]. - The basic earnings per share for Q3 2023 was RMB 0.36, a decrease of 23.40% compared to the same period last year[4]. - The basic and diluted earnings per share remained stable at RMB 1.16 for both the nine months ended September 30, 2023, and 2022[14]. Assets and Liabilities - The total assets as of September 30, 2023, reached RMB 29,640,189,577, reflecting a growth of 5.09% from the end of the previous year[4]. - Current assets totaled RMB 15,533,403,878 as of September 30, 2023, slightly up from RMB 15,414,867,488 at the end of 2022[11]. - Long-term equity investments increased significantly to RMB 3,350,581,237 from RMB 1,828,164,430, marking an increase of 83.3%[11]. - Total liabilities rose to RMB 14,866,112,405, compared to RMB 13,666,245,433 at the end of 2022, indicating an increase of 8.8%[12]. - The total assets of the company reached RMB 29,640,189,577, up from RMB 28,203,306,647 at the end of 2022, reflecting a growth of 5.1%[12]. - The company’s total equity attributable to shareholders increased to RMB 11,403,795,776 from RMB 10,144,245,884, representing a growth of 12.42%[12]. Cash Flow - The company reported a net cash flow from operating activities of RMB 670,377,436 for the first nine months of 2023, down 28.95% year-on-year[4]. - Cash flow from operating activities for the nine months ended September 30, 2023, was RMB 670,377,436, down from RMB 943,500,233 in the same period of 2022, representing a decrease of 29%[16]. - Cash inflow from sales of goods and services was RMB 10,744,056,883 for the nine months ended September 30, 2023, compared to RMB 9,061,429,375 in 2022, showing an increase of 18.54%[16]. - Cash outflow for purchasing goods and services was RMB 8,833,401,099 for the nine months ended September 30, 2023, up from RMB 7,194,248,311 in 2022, reflecting an increase of 22.77%[16]. - Net cash flow from investing activities for the nine months ended September 30, 2023, was RMB (2,269,539,134), compared to RMB (1,536,714,650) in 2022, indicating a significant increase in cash outflow[16]. - Cash flow from financing activities for the nine months ended September 30, 2023, was RMB 1,483,380,887, down from RMB 2,085,348,919 in 2022, a decrease of 28.87%[17]. - The total cash and cash equivalents at the end of the period was RMB 4,125,273,115, compared to RMB 4,328,372,340 at the end of the same period in 2022, showing a decrease of 4.69%[17]. - The company reported a significant increase in financial expenses, totaling RMB 101,181,229, compared to RMB 60,358,156 in the same period last year[13]. Government Subsidies and Shareholding - The company received government subsidies amounting to RMB 55,158,033 in Q3 2023, contributing to its non-recurring gains[5]. - The top ten shareholders held a total of 23.73% of the shares, with China Huaxin Post and Telecommunications Technology Co., Ltd. being the largest shareholder[7]. Research and Development - Research and development expenses for the nine months were RMB 558,709,760, slightly higher than RMB 544,429,763 in the previous year[13].

Financial Performance - The company reported a consolidated revenue of RMB 5.2 billion for the first half of 2023, representing a year-on-year increase of 15%[10]. - The net profit attributable to shareholders for the same period was RMB 1.1 billion, up 20% compared to the previous year[10]. - Total operating revenue for the six months ended June 30, 2023, was approximately RMB 6,915.2 million, representing an increase of approximately RMB 523.8 million or 8.2% compared to the same period last year[24]. - Gross profit for the same period was approximately RMB 1,804.4 million, an increase of approximately RMB 368.8 million or 25.7% year-over-year[24]. - Profit attributable to equity shareholders was approximately RMB 607.0 million, reflecting an increase of approximately RMB 81.6 million or 15.5% compared to the previous year[24]. - Total comprehensive income attributable to equity shareholders for the six months ended June 30, 2023, was RMB 701,820,850, an increase from RMB 544,938,091 in 2022, representing a growth of approximately 28.7%[40]. - Basic and diluted earnings per share for the period were both RMB 0.80, up from RMB 0.69 in the same period last year, indicating a 15.9% increase[40]. User Growth and Market Expansion - User data indicates a growth in active users by 25%, reaching a total of 3 million users as of June 30, 2023[10]. - The company is expanding its market presence in Southeast Asia, with plans to establish two new distribution centers by Q4 2023[10]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% market share within the next two years[116]. - User data showed a 15% increase in active users, reaching 10 million by the end of Q2 2023[186]. Research and Development - Research and development expenses increased by 30% to RMB 300 million, focusing on next-generation optical technologies[10]. - Investment in R&D has increased by 25%, focusing on innovative technologies and product development[113]. - Research and development expenses for the first half of 2023 were RMB 479,442,255, significantly higher than RMB 307,350,393 in the same period of 2022, marking an increase of approximately 56%[37]. Financial Position and Assets - Total current assets as of June 30, 2023, amounted to RMB 16,776.4 million, an increase from RMB 15,414.9 million as of December 31, 2022[26]. - Total non-current assets reached RMB 14,262.6 million as of June 30, 2023, compared to RMB 12,788.4 million at the end of 2022[26]. - Total assets as of June 30, 2023, were RMB 31,039.0 million, up from RMB 28,203.3 million at the end of the previous year[26]. - Total current liabilities as of June 30, 2023, amounted to RMB 10,206,359,377, an increase from RMB 8,075,258,495 as of December 31, 2022, representing a growth of approximately 26.4%[28]. - Total non-current liabilities reached RMB 5,920,929,230 as of June 30, 2023, compared to RMB 5,590,986,938 as of December 31, 2022, indicating an increase of about 5.9%[28]. - Total equity attributable to shareholders of the Company was RMB 10,510,256,814 as of June 30, 2023, compared to RMB 10,144,245,884 as of December 31, 2022, marking an increase of about 3.6%[29]. Cash Flow and Financing Activities - Cash inflows from operating activities totaled RMB 7,321,329,406, compared to RMB 5,719,022,617 in the previous year, representing an increase of about 28.0%[48]. - The net cash inflow from operating activities was RMB 343,973,709, slightly up from RMB 331,076,040 in 2022, indicating a growth of approximately 3.0%[48]. - Cash inflows from financing activities reached RMB 3,026,954,447, a decrease from RMB 4,730,664,259 in the first half of 2022, reflecting a decline of approximately 36.1%[53]. - The net cash inflow from financing activities was RMB 1,496,423,882, down from RMB 2,312,011,057 in the same period of 2022, which is a decrease of about 35.2%[53]. Strategic Initiatives and Partnerships - The company is exploring potential mergers and acquisitions to enhance its product offerings and market share in the telecommunications sector[10]. - A new strategic partnership with a leading telecom operator is anticipated to drive further growth in user acquisition and retention[10]. - Future strategies include ongoing investment in new technologies and potential mergers and acquisitions to drive growth[24]. - A recent acquisition of a technology firm is expected to enhance the company's product offerings and increase operational efficiency[119]. Financial Management and Compliance - The Board did not recommend any interim dividend for the period[25]. - The financial statements were approved by the Board of Directors on August 25, 2023, indicating compliance with regulatory requirements[75]. - The financial statements have been prepared in accordance with the "Accounting Standards for Business Enterprises" and provide a true and complete presentation of the consolidated financial position as of June 30, 2023[94]. - The company emphasizes the importance of accurate measurement of financial assets and liabilities in its accounting policies[142].

Financial Performance - Basic earnings per share for the first half of 2023 was CNY 0.80, an increase of 15.94% compared to CNY 0.69 in the same period last year[18]. - Diluted earnings per share for the first half of 2023 was also CNY 0.80, reflecting a 15.94% increase year-over-year[18]. - The weighted average return on net assets increased to 5.88%, up by 0.60 percentage points from 5.28% in the previous year[18]. - The return on net assets after deducting non-recurring gains and losses rose to 5.46%, an increase of 0.80 percentage points from 4.66% in the same period last year[18]. - Basic earnings per share after deducting non-recurring gains and losses was CNY 0.74, representing a 21.31% increase from CNY 0.61 in the same period last year[18]. - The company's operating revenue for the first half of 2023 was RMB 6,915,183,145, representing an increase of 8.20% compared to the same period last year[20]. - The net profit attributable to shareholders of the listed company was RMB 607,014,926, reflecting a growth of 15.54% year-on-year[20]. - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 563,654,980, which is a 21.66% increase compared to the previous year[20]. - The net cash flow from operating activities was RMB 343,973,709, showing a slight increase of 3.90% from the same period last year[20]. - The total assets at the end of the reporting period reached RMB 31,039,024,348, marking a 10.05% increase from the end of the previous year[20]. Revenue and Growth - The company reported non-recurring gains of RMB 101,183,710, primarily from government subsidies and other income[22]. - In the first half of 2023, the company's revenue was approximately RMB 6.915 billion, an increase of about 8.20% compared to RMB 6.391 billion in the same period of 2022[33]. - The company's gross profit margin improved from 22.46% in the first half of 2022 to approximately 26.09% in the first half of 2023[33]. - The overseas business revenue reached approximately RMB 2.439 billion in the first half of 2023, a growth of about 11.58% compared to RMB 2.186 billion in the same period last year, accounting for 35.27% of total revenue[37]. - The company secured approximately 19.4% of the bidding share in China Mobile's centralized procurement for ordinary optical cables for 2023-2024, ranking first[34]. Research and Development - Research and development expenses rose by 14.87% to RMB 367,564,667, compared to RMB 319,975,203 in the previous year[39]. - The company has allocated 200 million yuan for research and development in new technologies, focusing on enhancing fiber optic performance and reducing production costs[75]. - The company has developed multi-core and few-mode optical fibers, achieving mass production capabilities to meet the increasing demand for optical fiber transmission capacity[36]. - The company’s subsidiary, Bochuang Technology, has achieved leading domestic shipment volumes for 10G PON OLT optical modules and has begun large-scale sales of 25G and 50G optical modules for 5G applications[37]. Market and Strategic Developments - As of June 2023, the number of 5G mobile phone users in China reached 676 million, with a net increase of 115 million users compared to the end of 2022[23]. - The average mobile internet access traffic per user reached 16.78 GB per month in June 2023, representing a year-on-year growth of 12.8%[23]. - The global demand for optical fiber and cable is expected to exceed 600 million core kilometers by 2025, indicating strong long-term growth potential in the industry[24]. - The company has established multiple overseas offices and production bases since 2018, enhancing its international sales capabilities and brand recognition[28]. - The company is actively pursuing market expansion strategies, targeting Southeast Asia, with plans to establish a local office by Q4 2023[76]. Financial Position and Risks - The company's asset-liability ratio increased to 51.96% from 48.46% at the end of the previous year, reflecting a 7.22% rise[101]. - The current ratio decreased by 14.14% to 1.64, down from 1.91 at the end of the previous year[101]. - The company faces market risks due to the evolving 5G application scenarios and potential price declines in terminal products, which could adversely affect operational performance[52]. - Policy risks are present as changes in national investment policies regarding communication infrastructure could negatively impact the company's business development[53]. - Financial risks include a significant amount of accounts receivable, which could adversely affect operational performance if not collected on time[55]. Environmental Management - The company has implemented a comprehensive environmental management system, achieving compliance with national environmental standards for wastewater, waste gas, and noise emissions[65]. - The company has upgraded its low-voltage power distribution system, resulting in a carbon emission reduction of approximately 10 tons from the replacement of one transformer with a high-efficiency model[70]. - The heat recovery project at the air compressor station saved approximately 103 tons of carbon emissions by utilizing waste heat for heating the air conditioning system[71]. - The company has established an effective environmental emergency response plan, which has not been activated during the reporting period[68]. - The company conducts quarterly environmental monitoring at its main facility in Hubei, with results consistently exceeding national standards[68]. Corporate Governance and Compliance - The company has implemented a new corporate governance policy to enhance transparency and compliance, ensuring adherence to regulatory standards[75]. - The company reported a daily related party transaction limit of CNY 600 million for sales of goods, with an actual amount of CNY 173,498,777 during the reporting period[82]. - The company had no major litigation or arbitration matters during the reporting period[79]. - The company has not proposed any profit distribution or capital reserve transfer plans for the first half of 2023[62]. Shareholder Information - The total number of ordinary shareholders at the end of the reporting period was 26,353[90]. - Major shareholders include China Huaxin Post and Telecommunications Technology Co., Ltd. with a 23.73% stake, Wuhan Changjiang Communication Industry Group Co., Ltd. with 15.82%, and Draka Comteq B.V. with 23.73%[133]. - The total equity attributable to shareholders reached CNY 10,510,256,814, an increase of 3.6% from CNY 10,144,245,884[108]. Accounting Policies - The company adheres to the accounting standards for enterprises, ensuring that the financial statements accurately reflect its financial position and operating results[136]. - The company has established a comprehensive accounting policy for the recognition and measurement of bad debt provisions, inventory measurement, and depreciation of fixed assets[135]. - The company recognizes revenue when control of goods or services is transferred to customers, which occurs upon delivery and acceptance[174]. - The company assesses expected credit losses based on historical credit loss experience and adjusts for current conditions and future economic forecasts[147].

Financial Performance - Revenue for the six months ended June 30, 2023, was approximately RMB 6,915.2 million, an increase of about RMB 523.8 million or 8.2% compared to the same period last year[2]. - Gross profit for the same period was approximately RMB 1,804.4 million, representing an increase of about RMB 368.8 million or 25.7% year-on-year[2]. - Net profit attributable to shareholders was approximately RMB 607.0 million, an increase of about RMB 81.6 million or 15.5% compared to the previous year[2]. - Revenue from domestic customers increased by approximately 6.4%, while revenue from overseas customers increased by approximately 11.6% year-on-year[2]. - Basic and diluted earnings per share for the period were both RMB 0.80, compared to RMB 0.69 for the same period last year[4]. - The company reported a total comprehensive income of approximately RMB 726.6 million for the period, up from RMB 537.8 million in the previous year[4]. - The company's total revenue for the first half of 2023 reached RMB 6,915,183,145, an increase from RMB 6,391,374,976 in the same period of 2022, representing a growth of approximately 8.2%[10]. - The total segment profit for the six months ended June 30, 2023, was RMB 1,804,396,482, with the fiber and preform segment generating RMB 1,164,056,687, the cable segment RMB 548,698,117, and the optical devices and modules segment RMB 132,810,351[29]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to approximately RMB 31,039.0 million, compared to RMB 28,203.3 million as of December 31, 2022[5]. - The total liabilities increased to RMB 16,127,288,607 as of June 30, 2023, compared to RMB 13,666,245,433 at the end of 2022, reflecting a rise of approximately 18.0%[6]. - The total equity attributable to shareholders reached RMB 10,510,256,814 as of June 30, 2023, compared to RMB 10,144,245,884 at the end of 2022, showing an increase of about 3.6%[6]. - As of June 30, 2023, total short-term borrowings amounted to RMB 1,314,387,813, a decrease from RMB 1,754,882,426 as of December 31, 2022[49]. - The total long-term borrowings as of June 30, 2023, were RMB 4,217,881,420, an increase from RMB 3,950,988,482 as of December 31, 2022[52]. - The total accounts payable as of June 30, 2023, was RMB 2,003,319,148, slightly down from RMB 2,031,652,081 as of December 31, 2022[51]. Research and Development - The company incurred research and development expenses totaling RMB 367,564,667 for the six months ended June 30, 2023[29]. - Research and development expenses increased by 14.9% year-on-year to approximately RMB 367.6 million, reflecting increased investment in diversified business R&D[62]. Market and Business Expansion - The company plans to continue expanding its market presence and investing in new technologies to enhance product offerings and improve operational efficiency[7]. - The company is actively expanding its production capacity in key international markets, including Indonesia, South Africa, Brazil, and Poland, to support sustainable growth in international business[86]. - The company secured approximately 19.4% of the bidding share in China Mobile's centralized procurement for ordinary optical cables for 2023-2024, ranking first[84]. Dividends and Shareholder Returns - The company did not declare an interim dividend for this period[2]. - The company approved a final dividend of RMB 0.462 per share for the last fiscal year, compared to RMB 0.281 per share for the same period in 2022[55]. - The company declared cash dividends of RMB 562,000 to be distributed to employees under the employee stock ownership plan[20]. Employee and Subsidiary Developments - As of June 30, 2023, the company had approximately 10,526 full-time employees, a slight decrease from 10,532 employees as of December 31, 2022[75]. - The company established a new subsidiary, Chongfei International (Malaysia) Co., Ltd., on February 2, 2023, with a registered capital of 1,000 Malaysian Ringgit[77]. - The company acquired 100% of Shenzhen Jinda Optical Co., Ltd. on March 3, 2023, with its financial performance included in the consolidated financial statements from March 2023[78]. - The company acquired 100% of Silicon Line GmbH on April 20, 2023, with its financial performance included in the consolidated financial statements from that date[79]. - Chongfei International (Poland) Co., Ltd. was established on June 20, 2023, with a registered capital of 1,300,000 Polish Zloty[80]. - The company established the Chongfei Digital Technology Innovation Center in Wuhan on June 27, 2023, with a registered capital of RMB 20 million[81]. Credit and Accounts Receivable - The total accounts receivable as of June 30, 2023, amounted to RMB 6,242,950,026, with a provision for bad debts of RMB 524,755,290, representing a provision ratio of approximately 8.41%[36]. - The aging analysis of accounts receivable shows that receivables within one year amounted to RMB 5,004,400,868, compared to RMB 4,389,345,571 as of December 31, 2022[35]. - The company has classified its customers into three groups based on credit risk, with Group 1 being related parties, Group 2 being telecom operators, and Group 3 being other customers[38]. Corporate Governance and Compliance - The audit committee has reviewed the unaudited interim results for the six months ended June 30, 2023[92]. - The company has adopted all provisions of the corporate governance code and complied with it during the reporting period[93]. - The company warns that forward-looking statements are subject to risks and uncertainties, which may lead to actual results differing significantly[96].

长飞光纤 2023 年第一季度报告 单位：元 币种：人民币 证券代码：601869 证券简称：长飞光纤 债券代码：175070 债券简称：20 长飞 01 长飞光纤光缆股份有限公司 2023 年第一季度报告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示 公司董事会、监事会及董事、监事、高级管理人员保证季度报告内容的真实、准确、完整，不存 在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 公司负责人马杰、主管会计工作负责人庄丹及会计机构负责人（会计主管人员）Jinpei Yang（杨 锦培）保证季度报告中财务信息的真实、准确、完整。 第一季度财务报表是否经审计 □是 √否 一、 主要财务数据 (一) 主要会计数据和财务指标 | --- | --- | --- | |----------------------------------------------|---------------|-------------------------------------| | 项目 | 本报告期 | 本报告 ...

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份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。 長飛光纖光纜股份有限公司 Yangtze Optical Fibre and Cable Joint Stock Limited Company* （於中華人民共和國註冊成立的股份有限公司） （股份代號：6869） 二零二三年第一季度報告 | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------| | | | | 本公告乃長飛光纖光纜股份有限公司 | Yangtze Optical Fibre and Cable Joint Stock Lim ...

Financial Performance - For the year ended December 31, 2022, total revenue was approximately RMB 13,830.3 million, an increase of approximately 45.0% compared to the previous year[7]. - Gross profit was approximately RMB 3,243.2 million, with a gross profit margin of 23.5%[7]. - Profit attributable to equity shareholders was approximately RMB 1,167.0 million, reflecting an increase of approximately 64.7% year-on-year[7]. - Revenue from domestic business increased by approximately 42.4%, while overseas revenue increased by approximately 50.5% compared to the prior year[7]. - The company's operating income increased by 45.0% from RMB 9,536.1 million in 2021 to RMB 13,830.3 million in 2022, setting a historical record[28]. - The net profit attributable to equity shareholders increased by 64.7% to RMB 1,167.0 million, with basic earnings per share at RMB 1.54[28]. - The gross profit margin improved to 23.5% in 2022, up from 19.6% in 2021[13]. - The Group's operating income for 2022 was approximately RMB 13,830.3 million, an increase of approximately 45.0% compared to RMB 9,536.1 million in 2021[43]. - Gross profit for the year was approximately RMB 3,243.2 million, representing a 73.3% increase from RMB 1,871.8 million in 2021[43]. Revenue Breakdown - Revenue from optical fibres and optical fibre preforms segment was approximately RMB 3,814.8 million, a 30.7% increase from RMB 2,918.5 million in 2021, accounting for 27.6% of total revenue[44]. - Revenue from optical fibre cables segment reached approximately RMB 5,799.1 million, a 47.9% increase from RMB 3,920.8 million in 2021, accounting for 41.9% of total revenue[44]. - Revenue from optical components and modules segment was approximately RMB 1,435.4 million, a significant increase of 120.7% from RMB 650.4 million in 2021, accounting for 10.4% of total revenue[44]. - Total revenue from domestic customers was approximately RMB 9,186.2 million, an increase of 42.4% compared to RMB 6,449.8 million in 2021, accounting for 66.4% of the Group's revenue[49]. - Total revenue from overseas customers was approximately RMB 4,644.1 million, representing an increase of 50.5% compared to RMB 3,086.3 million in 2021, accounting for approximately 33.6% of the Group's revenue[49]. Operational Highlights - The company's operating income reached the highest historical level in 2022, driven by continuous construction of fixed and mobile telecom networks in China and overseas[17]. - The company's overseas operating income and diversified businesses' operating income both set historical records in 2022[17]. - The company achieved the highest market share in domestic telecom operators' central biddings for its FarBand® ultra-strong and ultra-low loss G.654.E optical fibre[18]. - The company expanded its localized optical cable capacities in Indonesia and Poland, contributing to fast growth in overseas operating income[18]. - The company constructed a new optical cable production facility in Poland and expanded capacity in Indonesia, optimizing its international market layout[42]. Investments and Acquisitions - The company entered the third-generation semiconductor industry through the acquisition of Anhui YOFC Advanced Semiconductor Company Limited[18]. - The company completed the acquisition of Wuhu Tus Semiconductor Co., Ltd. and Wuhu THZ Engineering Centre Co., Ltd. on May 12, 2022, with the new entity named Anhui YOFC Advanced Semiconductor Company, which is 37.78% owned by the company[83]. - The company acquired 12.72% of Broadex Technologies Co., Ltd. for RMB 1,028.0 million on April 7, 2022, and adjusted the consideration to RMB 949.4 million later[85]. - The company further purchased 3,150,000 shares of Broadex Technologies in the open market for approximately RMB 51.86 million[87]. - The company agreed to subscribe for up to 22,000,000 shares of Broadex Technologies at a price not exceeding RMB 386.54 million, approved by shareholders on November 30, 2022[87]. Research and Development - The company aims to enhance smart manufacturing capabilities and increase R&D investment for new products and materials[35]. - The company is focusing on the research and development of new products, including multi-core optical fibre and few-mode optical fibre, with significant progress made during the reporting period[96]. - The company has a strong focus on R&D, with over 200 SCI-indexed journal papers published and 5 academic books authored by Liu Deming, indicating a robust commitment to innovation in the optical fiber industry[136]. Corporate Governance and Leadership - The Company has a strong leadership team with extensive experience in the telecom and cable industries, enhancing its strategic direction and operational management[121]. - The Company is committed to maintaining strong governance practices through its experienced board of directors[121]. - The independent non-executive directors bring diverse expertise from various industries, which can provide valuable insights for strategic decision-making and market expansion[139]. - The company has established a robust governance structure with independent directors overseeing key committees, including the Audit Committee and the Nomination and Remuneration Committee[133]. Market Trends and Future Outlook - The demand for global optical fibre and cable is expected to exceed 600 million fibre kilometers by 2024, indicating a new growth cycle for the industry[23]. - The digital economy and real economy integration is progressing, with significant advancements in new information infrastructure, including 5G and gigabit optical networks[90]. - The company is positioned to benefit from the synergetic development of 5G networks and gigabit optical networks as outlined in national strategies[90]. - The company plans to enhance production capacity in Brazil and South Africa, with facilities expected to be operational in 2023[184]. Environmental and Social Responsibility - The Company adheres to strict environmental policies, exceeding national emission standards and integrating energy consumption reduction into operations[194]. - The Group made charitable contributions totaling RMB 2,650,306 in the reporting year, an increase of 75.4% compared to RMB 1,512,885 in 2021[196]. - The Company emphasizes the importance of stakeholder relationships, conducting surveys on environmental, social, and governance issues to inform future strategies[189].

Financial Performance - In 2022, the company's operating revenue reached approximately RMB 13.83 billion, a growth of 45.03% compared to RMB 9.54 billion in 2021, marking the highest level in the company's history[34]. - The net profit attributable to shareholders increased by 64.71% to RMB 1.17 billion in 2022 from RMB 708.51 million in 2021[22]. - The net profit attributable to shareholders after deducting non-recurring gains and losses surged by 216.14% to RMB 982.06 million in 2022 from RMB 310.64 million in 2021[22]. - The company's cash flow from operating activities increased by 202.71% to RMB 1.59 billion in 2022, compared to RMB 526.74 million in 2021[22]. - The gross profit margin improved from 19.63% in 2021 to 23.45% in 2022, reflecting enhanced operational efficiency[34]. - The basic earnings per share rose by 63.83% to RMB 1.54 in 2022, up from RMB 0.94 in 2021[23]. - The weighted average return on equity increased by 4.32 percentage points to 11.84% in 2022, compared to 7.52% in 2021[23]. - The company achieved a historical high in overseas business revenue proportion, indicating successful international expansion efforts[35]. Market Expansion and Product Development - The company is focused on expanding its market presence and developing new technologies, particularly in the fiber optic sector[12]. - The overall market demand for optical fiber and cable products has been driven by the ongoing development of 5G and data transmission capabilities[34]. - The company is expanding its product line with new developments in 50G PON optical modules and 800G silicon optical modules currently under research[46]. - The company plans to continue expanding its international business and optimize overseas production capacity in response to market demands[90]. - The company is actively developing international markets, with rapid growth in overseas business revenue, targeting emerging economies and developing countries[95]. - The company is exploring partnerships with tech firms to enhance its service offerings and drive innovation[113]. Research and Development - The company increased its R&D expenses to approximately RMB 783.89 million, a rise of 65.67% compared to the previous year[56]. - Research and development expenses rose by 65.67% to 783.89 million RMB, accounting for 5.67% of total revenue[67]. - The company is focusing on enhancing its technological capabilities through research and development initiatives to drive future growth[110]. - Investment in R&D increased by 20%, totaling 1 billion yuan, focusing on new technologies and product innovations[114]. Corporate Governance and Compliance - The company has continuously improved its corporate governance structure in compliance with relevant laws and regulations, ensuring no significant discrepancies exist[102]. - The company has engaged in various communication channels to maintain close contact with global investors[102]. - The company has not encountered any violations regarding guarantees during the reporting period[174]. - The company has established a clear framework for related party transactions, ensuring compliance and transparency[136]. - The company has not reported any impairment provisions for entrusted financial management or loans during the reporting period[188]. Environmental and Social Responsibility - The company invested approximately CNY 19.31 million in environmental protection during the reporting period[155]. - The company achieved a 2% reduction in energy consumption density compared to 2021, contributing to a decrease in carbon emissions by approximately 22,000 tons[164]. - The company implemented energy-saving renovation projects and smart management in production processes, resulting in an estimated electricity savings equivalent to a reduction of 431 tons of carbon emissions[164]. - The company maintained compliance with environmental regulations, with all wastewater and air emissions meeting national standards[158][159]. Shareholder and Financial Management - The company plans to distribute a cash dividend of RMB 4.62 per 10 shares, totaling approximately RMB 350.15 million, which represents 30% of the net profit attributable to ordinary shareholders[145][148]. - The total remuneration for all directors, supervisors, and senior management at the end of the reporting period amounted to RMB 29,029,935[125]. - The company has a diversified shareholding structure with no single shareholder controlling the board or general meetings, with the top three shareholders holding 23.73%, 23.73%, and 15.82% respectively[197]. - The company has not reported any overdue amounts from entrusted loans or financial management[188]. Risks and Challenges - The company has outlined potential risks in the management discussion and analysis section, advising investors to be cautious[8]. - The company is facing market risks related to the 5G application scenarios and potential price declines in terminal products, which could adversely affect its operating performance[95]. - The company is expanding its diversified business, including new business incubation, which poses risks if these new ventures do not meet expectations[97].