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 - 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].

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 ...

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) (a joint stock limited company incorporated in the People's Republic of China with limited liability ) 股票代號: 601869.SH 06869.HK) (STOCK CODE ammal 0 19 年度報告 Annual Report Smart Link Better Life | --- | --- | --- | --- | --- | |----------|-------|-------|-------|----------------------------------------------------------------------------------------| | | | | | | | CONTENTS | | 2 | | Corporate Profile 公司簡 ...

Financial Performance - The company's operating revenue for the year ended December 31, 2022, was RMB 13,830.3 million, representing a growth of approximately 45.0% compared to RMB 9,536.1 million in 2021[2]. - Gross profit was RMB 3,243.2 million, with a gross margin of 23.5%, up from 19.6% in the previous year[2]. - Net profit attributable to shareholders was RMB 1,167.0 million, reflecting an increase of approximately 64.7% from RMB 708.5 million in 2021[2]. - Revenue from domestic operations increased by approximately 42.4%, while revenue from overseas operations grew by approximately 50.5% compared to the previous year[2]. - The total comprehensive income for the year was RMB 1,189.4 million, compared to RMB 711.0 million in the previous year[5]. - The company's consolidated net profit attributable to ordinary shareholders for 2022 was RMB 1,166,998,457, an increase of 64.6% compared to RMB 708,506,406 in 2021[25]. - The basic earnings per share for 2022 was RMB 1.54, up from RMB 0.94 in 2021, reflecting a growth of 64.0%[26]. - The adjusted net profit attributable to ordinary shareholders for 2022 was RMB 1,166,436,457, compared to RMB 708,074,406 in 2021, indicating a 64.5% increase[25]. - The company reported a pre-tax profit of RMB 1,151,970,808 for 2022, which is a significant increase from RMB 748,001,169 in 2021, representing a growth of 54.0%[20]. Dividends and Shareholder Returns - The company proposed a final dividend of RMB 0.462 per share for the year ended December 31, 2022, compared to RMB 0.281 per share in 2021[2]. - The company declared cash dividends of RMB 562,000 for the current year, compared to RMB 432,000 in the previous year, reflecting a 30.0% increase[25]. - The company will withhold a 10% tax rate on dividends for shareholders investing through the Shanghai-Hong Kong Stock Connect[97]. - The company will withhold a 20% tax rate on dividends for mainland individual investors investing in its H shares through the Stock Connect[98]. Assets and Liabilities - Total assets as of December 31, 2022, amounted to RMB 28,203.3 million, an increase from RMB 19,478.6 million in 2021[7]. - The total liabilities increased to RMB 13,666,245,433 in 2022 from RMB 8,893,621,576 in 2021, reflecting a growth of about 53.5%[8]. - The total equity attributable to shareholders rose to RMB 10,144,245,884 in 2022, compared to RMB 9,781,997,943 in 2021, showing an increase of approximately 3.7%[8]. - The total amount of short-term borrowings as of December 31, 2022, was RMB 1,754,882,426, compared to RMB 1,717,697,001 in the previous year[50]. - The total amount of accounts payable was RMB 2,031,652,081 as of December 31, 2022, compared to RMB 1,773,023,142 in the previous year[52]. - The total amount of long-term borrowings was RMB 3,950,988,482 as of December 31, 2022, compared to RMB 1,289,500,000 in the previous year[54]. Research and Development - Research and development expenses for the year were RMB 783.9 million, compared to RMB 473.2 million in 2021, indicating a focus on innovation[3]. - Research and development expenses increased by 65.7% to approximately RMB 783.9 million, compared to RMB 473.2 million in 2021, reflecting increased investment in R&D[64]. Market and Operational Insights - The company plans to continue evaluating the performance of each segment to allocate resources effectively[32]. - The company plans to expand its market presence and invest in new product development to enhance competitive advantage in the optical components sector[34]. - The company is focused on developing new products and technologies, including ultra-low loss optical fibers, to meet the demands of long-distance and high-capacity connections[90]. - The company achieved a significant improvement in production efficiency through technological innovation and digital transformation, enhancing its manufacturing capabilities[90]. - The company is preparing to enhance its capabilities in offshore wind power installation, with its subsidiary, Changfei Baosheng Marine Engineering Co., Ltd., expected to achieve significant market breakthroughs in 2023[94]. Corporate Governance and Compliance - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[99]. - The company has complied with all provisions of the corporate governance code during the fiscal year ending December 31, 2022[101]. - The company has not repurchased, sold, or redeemed any of its listed securities during the fiscal year 2022[99]. - The company emphasizes that forward-looking statements are subject to risks and uncertainties, including changes in the regulatory environment and market growth in China[102]. Strategic Acquisitions and Investments - The group completed the acquisition of Wuhu Qidi Semiconductor Co., Ltd. and Wuhu Terahertz Engineering Center Co., Ltd. for a total investment of RMB 779.7 million[80]. - The group acquired a 49% stake in Changfei Optical Fiber Cable (Suzhou) Co., Ltd. for RMB 183.3 million, with its financial performance included in the consolidated financial statements from January 2022[82]. - The company completed the acquisition of Bochuang Technology Co., Ltd., enhancing its position in the optical module and device sector, which is expected to benefit from the growing global market driven by cloud data centers and 5G network demands[93]. - The acquisition of Anhui Changfei Advanced Semiconductor Co., Ltd. in May 2022 has positioned the company to leverage the growing market for third-generation semiconductor products, particularly in the electric vehicle sector[94]. Employee and Workforce Development - The group employed approximately 10,532 full-time employees as of December 31, 2022, an increase from 7,889 full-time employees as of December 31, 2021[78]. - The company implemented an employee stock ownership plan, repurchasing 2,000,000 shares for 100 employees[27].

Financial Performance - The company reported a consolidated revenue of RMB 5.2 billion for the first half of 2022, representing a year-on-year increase of 15%[9]. - The net profit attributable to shareholders for the same period was RMB 1.1 billion, up 20% compared to the previous year[9]. - Total operating revenue for the six months ended June 30, 2022, was approximately RMB 6,391.4 million, representing an increase of approximately 46.9% compared to the same period last year[17]. - Gross profit for the same period was approximately RMB 1,435.6 million, reflecting a 62.1% increase year-over-year[17]. - Profit attributable to equity shareholders was approximately RMB 525.4 million, an increase of approximately 9.6% compared to the previous year[17]. - Total comprehensive income for the period was RMB 537,789,695, up from RMB 479,362,105 in the previous year, indicating a growth of approximately 12.2%[37]. - Basic and diluted earnings per share for the six months ended June 30, 2022, were both RMB 0.69, compared to RMB 0.63 in 2021, marking an increase of about 9.5%[37]. Assets and Liabilities - The total assets of the company as of June 30, 2022, amounted to RMB 20.5 billion, reflecting a growth of 10% year-on-year[10]. - Total current assets as of June 30, 2022, amounted to RMB 14,486.8 million, up from RMB 12,313.8 million as of December 31, 2021[19]. - Total assets reached RMB 24,655.6 million as of June 30, 2022, compared to RMB 19,478.6 million at the end of 2021[21]. - Total liabilities as of June 30, 2022, were RMB 13,137.7 million, an increase from RMB 8,893.6 million at the end of 2021[21]. - Total current liabilities were RMB 7,735,076,344 as of June 30, 2022, compared to RMB 5,801,162,927 as of December 31, 2021, indicating an increase of about 33.3%[26]. - Total equity attributable to shareholders of the Company was RMB 8,211,421,906 as of June 30, 2022, up from RMB 8,137,112,395 at the end of 2021, reflecting a growth of approximately 0.9%[29]. Market Expansion and Strategy - The company has expanded its user base to over 1.5 million subscribers, marking a 25% increase from the previous year[9]. - Future guidance indicates an expected revenue growth of 12-15% for the next fiscal year, driven by new product launches and market expansion[9]. - Market expansion efforts include entering three new provinces in China, aiming to increase market share by 5%[9]. - The company plans to pursue strategic acquisitions to enhance its technological capabilities and market presence[9]. - A new product line is set to launch in Q4 2022, projected to contribute an additional RMB 500 million in revenue[9]. Research and Development - The company is investing RMB 300 million in R&D for new technologies, focusing on enhancing fiber optic capabilities[9]. - Research and development expenses for the six months ended June 30, 2022, were RMB 307,350,393, slightly higher than RMB 285,055,594 in 2021, showing an increase of approximately 7.5%[32]. Cash Flow and Financing Activities - Cash inflows from operating activities amounted to RMB 5,719,022,617, representing a 50.1% increase from RMB 3,812,253,563 in the same period of 2021[44]. - Cash inflows from financing activities reached RMB 4,730,664,259, up from RMB 3,315,523,910 in 2021[46]. - The cash and cash equivalents at the end of the period stood at RMB 4,181,449,200, significantly higher than RMB 2,350,285,738 at the end of June 2021[48]. - The net cash inflow from financing activities was RMB 2,312,011,057, compared to RMB 1,775,251,237 in the previous year[46]. Dividend and Shareholder Information - The board of directors did not recommend any interim dividend for the period[18]. - The company distributed RMB 163,707,503 to shareholders during the period[67]. - As of June 30, 2022, the major shareholders included China Huaxin Posts and Telecom Technologies Co., Ltd. (23.73%), Wuhan Yangtze Communications Industry Group Co., Ltd. (15.82%), and Draka Comteq B.V. (23.73%)[72]. Compliance and Governance - The financial statements were approved by the Board of Directors on August 26, 2022, ensuring compliance and governance[60]. - The financial statements were prepared in accordance with the "Accounting Standards for Business Enterprises" issued by the Ministry of Finance[77]. Accounting Policies - The company operates on a going concern basis, indicating a stable financial outlook[74]. - The functional currency of the company is Renminbi (RMB), and all financial statements are presented in RMB[84]. - The Group's accounting treatment for business combinations involving entities not under common control recognizes goodwill when the acquisition-date fair value of transferred assets exceeds the fair value of identifiable net assets acquired[92]. Financial Instruments and Assets - Financial assets are classified into three categories: measured at amortised cost, at fair value through other comprehensive income (FVOCI), and at fair value through profit or loss (FVTPL) based on the business model and cash flow characteristics[120]. - Financial assets are initially recognized at fair value, with transaction costs accounted for differently depending on the classification of the asset[121]. - The Group recognizes loss allowances for expected credit loss (ECL) on financial assets measured at amortized cost and debt investments at FVOCI[144]. Inventory and Fixed Assets - Inventories include raw materials, work in process, semi-finished goods, and finished goods, initially measured at cost[164]. - Fixed assets are stated in the balance sheet at cost less accumulated depreciation and impairment losses[191]. - The depreciation method for fixed assets is the straight-line method over their estimated useful lives, with annual depreciation rates ranging from 1.80% to 33.33% depending on the asset type[194][196].

Financial Performance - Total revenue for the year ended December 31, 2021, was RMB 9,536.1 million, an increase of approximately 16.0% compared to the previous year[6]. - Gross profit was RMB 1,871.8 million, with a gross profit margin of 19.6%[6]. - Profit attributable to equity shareholders for the year was RMB 708.5 million, reflecting an increase of approximately 30.3%[6]. - Revenue from domestic business increased by approximately 5.4%, while overseas revenue surged by approximately 46.8% compared to the prior year[6]. - The company's gross profit margin decreased from 26.9% in 2017 to 19.6% in 2021, while the net profit margin decreased from 11.9% to 7.4% during the same period[12]. - The company reported net cash from operating activities of RMB 526.7 million in 2021, a significant increase from RMB 140.9 million in 2020[12]. - The return on equity (ROE) improved from 5.9% in 2020 to 7.2% in 2021[12]. - The Group's operating income for the year ended December 31, 2021, was approximately RMB 9,536.1 million, representing an increase of 16.0% compared to RMB 8,221.5 million in 2020[48]. - Gross profit for the year was approximately RMB 1,871.8 million, reflecting a growth of approximately 13.6% from RMB 1,648.0 million in 2020[46]. - Net profit attributable to equity shareholders was approximately RMB 708.5 million, up approximately 30.3% from RMB 543.7 million in 2020[46]. Revenue Breakdown - In 2021, the Company's revenue increased by 16.0% to RMB9,536.1 million from RMB8,221.5 million in 2020[27]. - The optical fibre and optical fibre preforms segment contributed approximately RMB2,918.5 million, a decrease of 1.2% year-on-year, while the optical fibre cables segment generated RMB3,920.8 million, an increase of 19.3%[29]. - Overseas revenue reached RMB3,086.3 million, up 46.8% from 2020, accounting for approximately 32.4% of total revenue, the highest level in history[30]. - Revenue from the optical fibres and optical fibre preforms segment was approximately RMB2,918.5 million, a decrease of 1.2% from RMB2,953.0 million in 2020, accounting for 30.6% of the Group's revenue[48]. - Revenue from the optical fibre cables segment increased by 19.3% to approximately RMB3,920.8 million from RMB3,287.5 million in 2020, accounting for 41.1% of the Group's revenue[48]. - Other products and services contributed approximately RMB2,696.8 million, an increase of 36.1% from RMB1,981.0 million in 2020, accounting for 28.3% of the Group's revenue[48]. International Expansion - In 2021, the company achieved overseas business revenue of RMB 3,086.3 million, accounting for over 30% of total operating income for the first time[17]. - The company acquired YOFC Poliron in Brazil and progressed with the construction of an optical cable production facility in Poland, enhancing its international capacity layout[43]. - The company plans to enhance its overseas production capacity and build localized supply and service capabilities in response to internationalization strategies[90]. - The company completed the acquisition of YOFC Poliron in 2021, enhancing its presence in Brazil and Latin America[186]. - The company’s overseas communication network engineering projects in Peru and the Philippines met milestone goals on schedule, receiving recognition from local operators and customers[188]. Market Trends and Demand - The demand for optical fibre and cable is expected to grow globally, with a forecasted growth rate exceeding 8% in 2022, the highest since 2017[25]. - The total demand for optical fiber and cable globally exceeded 500 million fiber km in 2021, with an expected growth rate of over 8% in 2022, the highest since 2017[97]. - The demand for FTTH (Fiber to the Home) is expected to grow rapidly in regions with low penetration rates, such as Southeast Asia and Latin America, driving the need for optical fiber and cable construction projects[97]. - The centralized procurement by China Mobile in October 2021 announced a demand size of approximately 143 million fiber km, a 20% increase from 119.2 million fiber km in 2020[99]. - The global optical fibre and cable industry is projected to maintain steady growth, with total demand for optical fibre expected to exceed 600 million fibre km by 2024[106][107]. Cost Management and Profitability - The average price of optical fibre and cable decreased by over 30% compared to 2020, putting pressure on the Company's profit margins[29]. - The Group's cost of sales for the year was approximately RMB7,664.2 million, an increase of 16.6% from RMB6,573.5 million in 2020, accounting for 80.4% of the Group's revenue[49]. - The Company aims to strengthen its cost-leader advantage for common optical fibre and cable products while leveraging technology and R&D for high-end multi-mode and specialty optical fibre products[35]. - The Company plans to continue optimizing its cost structure and adjusting its product mix to enhance overall profitability[29]. - The company aims to improve OVD and VAD process levels for single-mode products and leverage PCVD process advantages for niche market segments[189]. Research and Development - Research and development expenses increased by 14.1% to RMB473.2 million from RMB414.6 million in 2020, mainly due to increased salary expenses for R&D personnel[50]. - The company aims to strengthen its technological innovation and smart manufacturing capabilities to enhance core competitiveness in diversified businesses[37]. - The company is committed to sustainable development and achieving its strategic goals outlined in the "14th Five-Year Plan"[37]. - The company has received multiple awards for technological inventions, including the National Technological Invention Award, reflecting its commitment to research and development[144]. - The company emphasizes the importance of timely development of new technologies and products to maintain competitive advantages in the evolving optical fiber and cable market[196]. Governance and Leadership - The board includes members with extensive experience in the telecom and cable industries, enhancing the company's strategic direction[129]. - The company has a strong governance structure with experienced supervisors overseeing the performance of directors and senior management[154]. - The company is committed to maintaining high standards of corporate governance and compliance with regulatory requirements[151]. - The independent directors bring a wealth of experience from various industries, which may contribute to strategic decision-making and market expansion efforts[147][149]. - The company aims to leverage the expertise of its board members to navigate regulatory environments and enhance corporate governance practices[149]. Employee and Social Responsibility - The company prioritizes talent development and employee feedback, providing growth opportunities through performance management systems[199]. - The company actively engages in social responsibility initiatives, contributing to education, disaster relief, and community care[199]. - The Group arranged external training courses and seminars to enhance employees' professional knowledge and skills[77][80]. - The company conducts annual customer satisfaction surveys to gather feedback and improve product and service quality[198]. - The company aims to enhance its environmental, social, and governance performance based on stakeholder surveys conducted during the year[200].