Financial Performance - The company's revenue for the year increased slightly to approximately RMB 126.1 million, despite ongoing challenges from the COVID-19 pandemic and global supply chain disruptions[15]. - The company recorded a loss of approximately RMB 446.8 million for the year, primarily due to one-time expenses related to the development of third-generation semiconductor business and non-cash items[15]. - Excluding the impact of non-cash items, the adjusted loss for the year was approximately RMB 18.4 million[15]. - The company's revenue increased from approximately RMB 122.0 million in 2020 to approximately RMB 126.1 million in 2021, while recording a loss of approximately RMB 446.8 million in 2021 compared to a profit of approximately RMB 4.6 million in 2020[41]. - Gross profit decreased from approximately RMB 26.4 million to RMB 25.5 million, with a gross margin decline from 21.6% to 20.2% due to a decrease in average selling prices of LED chips[83]. - The company recorded a net loss of approximately RMB 446.8 million for the year, compared to a net profit of RMB 4.6 million in the previous year, primarily due to share-based payment expenses and losses from the acquisition of intangible assets[93]. - Administrative and other expenses increased by approximately 486.9% to RMB 98.6 million, mainly due to share-based payment expenses amounting to RMB 54.0 million[90]. - The company reported a negative net profit margin of -354.2%, compared to a positive margin of 3.7% in the previous year[94]. Market Opportunities and Growth - The global semiconductor market is projected to grow by 25.6% in 2021, reaching approximately USD 552.9 billion, highlighting the demand for chips[14]. - The demand for GaN (Gallium Nitride) products is significantly increasing, with applications in electric vehicles, wireless fast charging, data centers, and renewable energy, indicating a vast market potential[33]. - By 2025, the global market share of electric vehicles is expected to exceed 30%, driving demand for GaN technology[33]. - The penetration rate of GaN in the fast charging market is projected to exceed 50% by 2025, highlighting its growing importance in this sector[33]. - The number of users for fast chargers is anticipated to reach 610 million by 2026, presenting substantial growth opportunities for the fast charging market[33]. - The Chinese data center market is expected to continue its upward trend due to the surge in data traffic and the increasing adoption of edge computing technologies[33]. Strategic Initiatives and Investments - The company is focusing on the development of third-generation semiconductor products, specifically Gallium Nitride (GaN), to capitalize on market opportunities[15]. - The company acquired GSR GO Holding Corporation, which specializes in rapid battery charging systems, to leverage the electric bicycle battery market potential[16]. - Investments were made in leading GaN semiconductor suppliers, including VisIC Technologies Limited and GaN Systems Inc., to strengthen the company's position in the market[16]. - The company has obtained six patents related to rapid charging battery systems and equipment for electric vehicle charging stations during the year[19]. - Strategic partnerships have been established with companies like Beijing Dd2 Network Technology Co., Ltd. and Shenzhen Roma Technology Co., Ltd. to enhance R&D in next-generation semiconductor technologies[19]. - The company aims to become a leading supplier of GaN technology in the Greater China region, focusing on strategic investments and partnerships in the semiconductor industry[28]. - The company has made strategic investments in several third-generation semiconductor companies to accelerate breakthroughs in key technologies, including a successful acquisition of GSR GO Holding Corporation for HKD 76.8 million, focusing on rapid battery charging systems[43]. - The company acquired approximately 20.1% of VisIC Technologies Ltd. for an investment cost of about USD 25 million, which specializes in GaN-related products for the high-voltage electric vehicle sector[47]. Research and Development - The company is actively recruiting semiconductor talent and enhancing its technical capabilities to accelerate the development and application of GaN-related products[28]. - The company is focused on innovative product design tailored to customer needs and market demands, aiming to achieve breakthroughs in various industry segments[66]. - The company is leveraging national policies and industry trends to drive rapid business growth in the third-generation semiconductor sector[39]. - The company is transforming its Xuzhou factory to enhance core equipment and production capabilities, aiming to become a pioneer in the integrated equipment production model for third-generation semiconductors[19]. - The company is actively expanding its R&D capabilities by establishing a research center in Shenzhen and enhancing its design and manufacturing capabilities in semiconductor materials and devices[48]. Corporate Governance - The board consists of three executive directors, two non-executive directors, and three independent non-executive directors as of December 31, 2021[182]. - The company has a commitment to maintaining good corporate governance standards, which enhances transparency and accountability to shareholders and creditors[180]. - The board of directors meets at least four times a year to review past financial and operational performance and discuss the company's business direction and strategy[191]. - The independent non-executive directors are required to attend shareholder meetings to understand shareholder opinions fairly[196]. - The board has a structured process for addressing potential conflicts of interest, requiring relevant directors to declare interests and abstain from voting[192]. Financial Position and Assets - Total assets increased significantly by 201.9% to RMB 665.9 million, while total equity rose by 253.9% to RMB 609.3 million[71]. - The company's current ratio improved to 8.1 from 3.9, indicating better short-term financial health[71]. - The total cash and bank balances as of December 31, 2021, were approximately RMB 113.6 million, significantly increased from approximately RMB 9.2 million in 2020, primarily due to the issuance of new shares raising approximately RMB 394.6 million during the year[103]. - The company's equity attributable to owners as of December 31, 2021, was approximately RMB 609.3 million, compared to approximately RMB 172.2 million in 2020[104]. - The debt-to-equity ratio as of December 31, 2021, was approximately 1.1%, a significant decrease from approximately 7.6% as of December 31, 2020[111].

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 75,300,000, compared to RMB 59,834,000 for the same period in 2020, representing a year-over-year increase of 25.7%[9] - Gross profit for the same period was RMB 15,466,000, up from RMB 9,788,000 in 2020, indicating a gross margin improvement[9] - The company reported a net loss attributable to owners of RMB 41,158,000 for the six months ended June 30, 2021, compared to a profit of RMB 114,000 in the previous year[9] - The total comprehensive income for the period was RMB 287 thousand, a significant decline from RMB 41,158 thousand in the previous year[16] - The company recorded a loss of approximately RMB 41.2 million for the period, compared to a profit of RMB 0.1 million in the previous period, mainly due to the recognition of share-based payment expenses[124] Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 173,576,000, a decrease from RMB 183,598,000 as of the end of 2020[11] - Current liabilities were RMB 69,724,000 as of June 30, 2021, compared to RMB 47,291,000 at the end of 2020, reflecting an increase of 47.5%[11] - The company's cash and cash equivalents were RMB 7,378,000 as of June 30, 2021, down from RMB 9,174,000 at the end of 2020[11] - Trade receivables decreased to RMB 98,001 thousand as of June 30, 2021, from RMB 111,615 thousand as of December 31, 2020, representing a decline of approximately 12.2%[46] - The total amount of trade and bills payables decreased to RMB 14,106 thousand as of June 30, 2021, from RMB 22,794 thousand as of December 31, 2020, reflecting a reduction of approximately 38.3%[57] Cash Flow - Operating cash flow before changes in working capital was RMB 9,819 thousand, an increase from RMB 4,024 thousand in the previous year[16] - The company’s cash flow from operating activities was RMB 1,499 thousand, recovering from a cash outflow of RMB 29,766 thousand in the same period last year[16] - Cash flow from operating activities for the period was approximately RMB 1.5 million, a decrease from RMB 29.8 million in the previous period, attributed to changes in working capital[127] Shareholder Information - The weighted average number of ordinary shares for calculating basic loss per share was 424,309,393 for the six months ended June 30, 2021, compared to 400,000,000 for the same period in 2020[41] - Major shareholders include Zhao Yiwen, Lin Oujian, and Zhao Guisheng, each holding 300,960,000 shares, representing 62.70% of the issued share capital[134] - The company has approved a share option scheme, granting a total of 34,510,000 options at an exercise price of HKD 7.5 per share[170] Market and Product Focus - The company plans to focus on expanding its market presence and enhancing product development in the upcoming quarters[9] - The company’s revenue from sales of semiconductor products, including LED lighting products, remains a key focus area for future growth[21] - The demand for LED products is expected to remain positive, with China's retail sales of communication equipment growing by approximately 26.3% year-on-year from January to June 2021[95] Investments and Acquisitions - The company acquired a 5.3% stake in an Israeli company focused on developing GaN-related products for approximately USD 5 million[53] - The group completed the acquisition of GSR GO Holding Corporation for a total consideration of HKD 76.8 million, which is expected to enhance its capabilities in rapid battery charging solutions[92] Expenses and Costs - Selling and distribution expenses rose by approximately 120.0% to RMB 1.1 million, mainly due to increased marketing activities[120] - Administrative and other expenses surged by approximately 491.3% to RMB 54.4 million, primarily due to equity-settled share-based payment expenses amounting to approximately RMB 46.0 million[121] Corporate Governance - The company has adopted corporate governance practices in line with the listing rules, ensuring compliance[187] - The audit committee reviewed the unaudited financial statements and found them to comply with applicable accounting standards[190]

年報 Annual Report 2020 HongGuang Lighting Holdings Company Limited 宏光照明控股有限公司 HongGuang Lighting Holdings Company Limited 宏光照明控股有限 公 司 (incorporated in the Cayman Islands with limited liability) Stock Code: 6908 2020 HongGuang Lighting Holdings Company Limited 宏光照明控股有限 公 司 （於開曼群島註冊成立的有限公司） 股份代號：6908 年 報 ANNUAL REPORT 2020 目錄 2 公司資料 4 主席報告 6 管理層討論與分析 16 董事及高級管理人員簡介 20 企業管治報告 35 環境、社會及管治報告 42 董事會報告 55 獨立核數師報告 59 綜合損益及其他全面收益表 60 綜合財務狀況表 62 綜合權益變動表 63 綜合現金流量表 65 財務報表附註 118 財務概要 3 宏光照明控股有限公司 二零二零年年報 二零二零年年報 宏光照明控 ...

Financial Performance - Revenue for the six months ended June 30, 2020, was RMB 42,826,000, a decrease of 52.3% compared to RMB 89,662,000 for the same period in 2019[14] - Gross profit for the same period was RMB 9,788,000, down 54.9% from RMB 21,258,000 in 2019[14] - The net profit attributable to owners of the company was RMB 114,000, a decline of 96.5% from RMB 3,289,000 in the previous year[14] - Basic and diluted earnings per share were RMB 0.03, compared to RMB 0.82 for the same period in 2019[14] - The company reported a net profit of RMB 3,580,000 for the six months ended June 30, 2020, compared to RMB 10,480,000 for the same period in 2019, representing a decrease of approximately 65.8%[18] - The total comprehensive income for the period was RMB 135,000, compared to RMB 3,198,000 in the previous year, indicating a substantial decline[18] - Profit for the period was approximately RMB 0.1 million, down about RMB 3.2 million or approximately 97.0% from RMB 3.3 million in the previous period[58] - The net profit margin for the six months ended June 30, 2020, was approximately 0.3%, down from 3.7% for the same period in 2019, primarily due to a decrease in revenue[75] Assets and Liabilities - Total assets as of June 30, 2020, were RMB 202,836,000, down from RMB 246,096,000 as of December 31, 2019[15] - Current liabilities decreased to RMB 33,652,000 from RMB 76,345,000 at the end of 2019, indicating improved liquidity[15] - Cash and cash equivalents as of June 30, 2020, were RMB 2,189,000, a significant decrease from RMB 30,285,000 at the end of 2019[15] - The company has maintained a stable equity attributable to owners at RMB 167,731,000 as of June 30, 2020, compared to RMB 167,596,000 at the end of 2019[15] - As of June 30, 2020, accounts receivable and notes receivable amounted to RMB 133,250,000, a decrease from RMB 137,180,000 as of December 31, 2019, representing a decline of approximately 2.1%[10] - The company's cash and bank balances were RMB 2,189,000 as of June 30, 2020, significantly down from RMB 30,285,000 as of December 31, 2019, indicating a decrease of about 92.8%[50] - Trade payables and notes payable totaled RMB 17,797,000 as of June 30, 2020, down from RMB 45,648,000 as of December 31, 2019, reflecting a reduction of approximately 61.0%[51] - The company had bank borrowings of RMB 7,000,000 as of June 30, 2020, down from RMB 12,850,000 as of December 31, 2019, representing a decrease of approximately 45.5%[53] Cash Flow and Financing - Operating cash flow before changes in working capital was RMB 4,024,000 for the first half of 2020, down from RMB 7,261,000 in the same period of 2019, a decline of about 44.5%[19] - The company experienced a significant decrease in cash used in operating activities, amounting to RMB 28,267,000 in the first half of 2020, compared to RMB 2,685,000 in the same period of 2019[20] - The company’s financing activities resulted in a net cash outflow of RMB 7,201,000 in the first half of 2020, compared to a net inflow of RMB 6,039,000 in the same period of 2019[20] - The net cash flow used in operating activities for the six months ended June 30, 2020, was approximately RMB 29.8 million, compared to RMB 5.5 million for the same period in 2019[82] Business Operations - The company’s main business involves the design, development, manufacturing, and sales of LED lighting products in China[21] - Revenue from LED bulb sales decreased to RMB 42,359,000, down 50.7% from RMB 85,904,000 in the same period last year[32] - Revenue from LED chips was approximately RMB 42.4 million, accounting for about 98.9% of total revenue, a significant drop from RMB 85.9 million or 95.8% in 2019[61] - The company continues to engage in the design, development, manufacturing, and sales of LED products, with no significant operational changes since its listing in December 2016[56] - The company aims to broaden its customer base in response to decreased sales from downstream LED lighting industry clients due to the pandemic[80] Cost Management and Efficiency - The company plans to focus on cost control and operational efficiency to navigate the challenging market conditions ahead[14] - The company plans to implement cost control measures and explore further business development opportunities to enhance growth potential amid ongoing challenges[58] - Selling and distribution expenses decreased by approximately 16.7% to RMB 0.5 million, attributed to reduced market sales activities[70] - Administrative and other expenses decreased by approximately 41.0% to RMB 9.2 million, primarily due to the absence of professional service expenses related to the company's transfer to the main board[71] Governance and Compliance - The audit committee has reviewed the unaudited condensed consolidated financial statements and found them to comply with applicable accounting standards and regulations[107] - The company has adopted the corporate governance code and believes it has complied with the code during the reporting period, except for the separation of roles between the chairman and CEO[105] Shareholder Information - The company did not declare or pay any dividends during the six months ended June 30, 2020[40] - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2020, compared to no dividend in 2019[76] - As of June 30, 2020, major shareholders Zhao Yiwen, Lin Qijian, and Zhao Guisheng each hold a total of 300,000,000 shares, representing 75.00% of the company's issued share capital[90] Related Party Transactions - The company incurred related party transactions amounting to RMB 1,054,000 for the six months ended June 30, 2020, compared to RMB 1,193,000 in the same period of 2019, showing a decline of about 11.7%[56] - The group has entered into several transactions with related parties, which are exempt from the requirements of shareholder approval and disclosure under the listing rules[95]

Financial Performance - The company's revenue increased from approximately RMB 203.7 million for the year ended December 31, 2018, to approximately RMB 243.3 million for the year ended December 31, 2019, representing a growth of about 19.4%[9] - The company reported total revenue of approximately RMB 243.3 million for the year ended December 31, 2019, representing a growth of 19.4% compared to RMB 203.7 million in 2018[19] - Gross profit increased to approximately RMB 60.3 million, up 25.9% from RMB 47.8 million in the previous year, with a gross margin of 24.8%[19][28] - The company achieved a net profit of RMB 17.3 million, a decrease of 27.7% from RMB 23.9 million in 2018, resulting in earnings per share of RMB 0.0432[19] - Profit for the year decreased from approximately RMB 23.9 million in 2018 to approximately RMB 17.3 million in 2019, a decline of about RMB 6.6 million or 27.6%[37] - The net profit margin for the year was approximately 7.1%, down from 11.7% in 2018, mainly due to increased administrative and other expenses[39] - The company did not recommend a final dividend for the year ended December 31, 2019, compared to none in 2018[40] Revenue Sources - The demand for thin LED chips continued to be strong, contributing approximately RMB 89.9 million to the company's revenue for the year ended December 31, 2019, compared to approximately RMB 53.1 million in the previous year[15] - Revenue from LED beads accounted for approximately RMB 235.0 million, representing 96.6% of total revenue, driven by strong demand in China[23] Expenses and Costs - The company’s sales and distribution expenses increased by approximately 81.8% to RMB 2.0 million, primarily due to rising travel and employee costs[32] - Administrative and other expenses rose by approximately 77.1% to RMB 34.0 million, largely due to professional service costs related to the transfer of listing and increased R&D expenses[34] - Income tax expenses for the year were approximately RMB 5.8 million, up from RMB 5.1 million in 2018, primarily due to increased revenue[36] - The financing cost for the year ended December 31, 2019, was approximately RMB 0.5 million, an increase due to new bank borrowings[35] Research and Development - The company obtained 9 new patents during the year, reflecting its ongoing commitment to research and development[10] - The company holds a total of 27 registered patents in China as of December 31, 2019, with 9 patents registered during the year[19] Corporate Governance - The board consists of three executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2019[80] - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with governance standards[78] - The board is responsible for corporate governance duties, including reviewing and monitoring compliance with legal and regulatory requirements[89] - The independent non-executive directors provide independent opinions to the board, enhancing governance and accountability[71] Environmental Management - The company has received ISO 14001:2015 certification for its manufacturing facility, demonstrating its commitment to environmental management[148] - The company has installed gas purification systems to control emissions and regularly tests pollutant concentrations to ensure compliance with regulatory limits[151] - The company emitted approximately 1,356 tons of carbon dioxide as greenhouse gases from its production equipment in China during the reporting period[158] - The company aims to manage hazardous waste effectively, with a focus on minimizing the impact of its production processes[152] Employee and Community Engagement - The group employed a total of 156 employees as of December 31, 2019, compared to 121 employees in 2018, reflecting a growth of 28.9%[59] - Employee costs, including salaries and bonuses, were approximately RMB 9.1 million for the year ended December 31, 2019, up from RMB 7.9 million in 2018, representing a 15.2% increase[59] - The company donated HKD 1,000,000 to the Hong Kong Community Chest during the reporting period, marking a commitment to social responsibility[185] Market Conditions and Challenges - The company acknowledges the challenges posed by the COVID-19 pandemic on the manufacturing sector in China, impacting industry outlook and market conditions[10] - The company continues to monitor market conditions amid challenges posed by the COVID-19 pandemic and the sluggish consumer electronics market[18] - The company will continue to monitor market conditions and strive to mitigate any adverse impacts it may face[10] Quality Control - The company has established a quality control team to ensure product quality meets internal standards and customer requirements[180] - The company has implemented internal controls to ensure data privacy and protect the interests of suppliers, business partners, and customers[181] - The company strictly prohibits any form of corruption, bribery, money laundering, and other commercial fraud, adhering to relevant laws and regulations[183]