Core Viewpoint - Semiconductor stocks in Hong Kong have shown strong performance, with several companies experiencing significant gains in their stock prices [1]. Group 1: Stock Performance - Shun Tai Holdings (01335) increased by 7.83%, reaching a price of 0.124 with a market capitalization of 302 million [2]. - InnoCare Pharma (02577) rose by 7.90%, with a latest price of 62.150 and a total market value of 555.87 billion [2]. - Shanghai Fudan (01385) saw a gain of 6.18%, priced at 33.180 and a market cap of 27.255 billion [2]. - Hua Hong Semiconductor (01347) grew by 5.96%, with a price of 41.800 and a market capitalization of 72.192 billion [2]. - Meijiayin Holdings (06939) increased by 4.44%, priced at 0.470 and a market cap of 24.4 million [2]. - SMIC (00981) rose by 2.80%, with a price of 51.450 and a total market value of 410.883 billion [2]. - Brainhole Technology (02203) increased by 2.65%, priced at 0.194 with a market cap of 15.5 million [2]. - Jingmen Semiconductor (02878) saw a rise of 2.25%, priced at 0.455 and a market cap of 113.6 million [2]. - China Electric Huada Technology (00085) increased by 2.11%, with a price of 1.450 and a market capitalization of 29.43 billion [2].

(责任编辑：宋政 HN002) 【免责声明】本文仅代表作者本人观点，与和讯网无关。和讯网站对文中陈述、观点判断保持中立，不对所包含内容 的准确性、可靠性或完整性提供任何明示或暗示的保证。请读者仅作参考，并请自行承担全部责任。邮箱： news_center@staff.hexun.com 格隆汇8月4日｜港股半导体股走强，其中，顺泰控股、英诺赛科涨超7%，上海复旦涨超6%，华虹半导 体涨超5%，美佳音控股涨超4%，中芯国际、脑洞科技、晶门半导体、中电华大科技涨超2%。 | 代码 | 名称 | | 涨跌幅 √ | 最新价 | 总市值 | | --- | --- | --- | --- | --- | --- | | 01335 | 顺泰控股 | 0 | 7.83% | 0.124 | 3.02亿 | | 02577 | 英诺赛科 | | 7.90% | 62.150 | 555.87亿 | | 01385 | 上海賞目 | | 6.18% | 33.180 | 272.55亿 | | 01347 | 华虹半导体 | | 5.96% | 41.800 | 721.92亿 | | 06939 | 美佳音控股 | | ...

Financial Performance - MEGAIN Holding reported a revenue of HKD 1.26 billion for the fiscal year ending December 31, 2024, representing a year-over-year increase of 15%[2]. - The company achieved a net profit margin of 12%, with net profit amounting to HKD 151.2 million, up from HKD 130 million in the previous year[2]. - For the fiscal year ending December 31, 2023, the company reported a revenue of RMB 172,394,000, a decrease of approximately 0.56% compared to RMB 173,367,000 in 2022[13]. - The net profit for the same period was RMB 23,212,000, representing a significant decline of about 48.3% from RMB 44,892,000 in 2022[13][23]. - The gross profit margin decreased to 38.9% in 2023 from 52.3% in 2022, indicating increased competition and challenges in the market[15][22]. - Total revenue decreased by approximately 13.2%, from about RMB 172.4 million to about RMB 149.7 million[35]. - Net profit after tax decreased by approximately 58.4% from RMB 23.2 million to RMB 9.7 million, with net profit margin dropping from 13.5% to 6.5%[52]. - Return on equity dropped from 6.3% in 2023 to 2.6% in 2024, primarily due to a decrease in net profit[63]. - Gross margin decreased from 38.9% in 2023 to 32.2% in 2024, reflecting a reduction in gross profit[66]. - Net profit margin fell from 13.5% in 2023 to 6.5% in 2024, attributed to the same factors affecting gross margin[67]. Market Strategy and Expansion - MEGAIN Holding plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by 2025[2]. - The company is exploring potential acquisitions to enhance its technology portfolio, with a budget of HKD 300 million allocated for this purpose[2]. - The company plans to explore opportunities in the IoT chip business, which aligns with its technological advantages and has a larger market size[24]. - The company aims to maintain its position as a leading supplier of compatible printer consumables chips in China while exploring opportunities in the IoT chip market[176]. - The company plans to continue developing its IoT business strategy and diversify sales platforms through an online store to expand its market reach[77]. Research and Development - The company is investing HKD 200 million in R&D for new product development, focusing on IoT and integrated circuit technologies[2]. - The company submitted a total of 33 patent applications in China during the current period to strengthen its R&D capabilities[33]. - Research and development expenses increased by approximately 17.6% from RMB 16.3 million to RMB 19.1 million, primarily due to higher costs for R&D personnel and testing of compatible printer consumable chips[48]. - The core advantage of the company lies in its R&D capabilities, which are crucial for success in the industry[78]. Operational Efficiency - The company reported a 10% increase in gross profit, amounting to HKD 420 million, driven by improved operational efficiencies[2]. - Sales and service costs decreased from approximately RMB 105.4 million to about RMB 101.4 million, primarily due to a drop in integrated circuit chip costs from self-designed chips[42]. - Overall gross profit decreased by approximately 28.0% from about RMB 67.0 million to approximately RMB 48.3 million, with gross margin declining from 38.9% to 32.2%[43]. Financial Health and Liquidity - The company’s total assets as of December 31, 2023, were RMB 371,335,000, with a net asset value of RMB 370,219,000[14]. - The current ratio improved to 19.3 in 2023, compared to 9.9 in 2022, reflecting better liquidity management[15]. - As of December 31, 2024, the company's current liabilities amounted to RMB 10,624 thousand, an increase from RMB 1,878 thousand in 2023[61]. - The current ratio decreased from 19.3 in 2023 to 8.6 in 2024, while the quick ratio fell from 17.2 to 7.7, indicating a decline in liquidity[62]. - The company had cash and cash equivalents of approximately RMB 172.4 million as of December 31, 2024, down from RMB 183.8 million in 2023[68]. Corporate Governance - The board of directors emphasized a commitment to sustainable practices, aiming for a 30% reduction in carbon emissions by 2026[2]. - The company has established a suitable directors' and officers' liability insurance to cover potential legal claims against its directors and senior officers[183]. - The board is committed to fostering a corporate culture that aligns with the company's goals, values, and strategies[185]. - The company has adopted a Board Diversity Policy to promote and maintain diversity within the board, considering factors such as gender, age, and professional experience[200]. Risks and Challenges - The company anticipates continued uncertainty in the operating environment due to global economic factors, including trade protectionism and interest rate fluctuations[24]. - The company faces long-term business risks due to technological advancements and the rise of a paperless workplace, which may impact future business prospects[131]. - The company has faced various risks that could impact its financial condition and operational performance, including the inability to develop new products and intense competition[124]. Shareholder Information - Major shareholders include GMTL with 151,812,500 shares, representing 29.27% ownership, and Zhonghao with 97,500,000 shares, representing 18.80% ownership[152]. - The company has not made any payments to directors or top five highest-paid individuals as incentives for joining or post-termination compensation during the reporting period[137]. - The board does not recommend any final dividend for the year ending December 31, 2024[108].

Financial Performance - The group's revenue decreased by approximately 13.2% to about RMB 149,654,000 (2023: RMB 172,394,000) [3] - Gross profit for the period fell by approximately 28.0% to about RMB 48,251,000 (2023: RMB 66,977,000) [3] - Profit after tax for the period was approximately RMB 9,662,000, a decrease of about 58.4% (2023: RMB 23,212,000) [3] - Basic earnings per share decreased by approximately 57.8% to about RMB 0.019 (2023: RMB 0.045) [3] - Profit before tax decreased to RMB 9,662,000 in 2024 from RMB 23,212,000 in 2023, a decline of 58.3% [39] - Net profit after tax decreased by approximately 58.4% to about RMB 9.7 million, with the net profit margin dropping from 13.5% to 6.5% [68] - Total revenue decreased by approximately 13.2% from RMB 172.4 million to RMB 149.7 million for the year ended December 31, 2023 [52] - Overall gross profit decreased by approximately 28.0% from RMB 67.0 million to RMB 48.3 million, with gross margin declining from about 38.9% to 32.2% [58] Revenue Breakdown - Revenue from chip sales was RMB 122,457 thousand, down 16.9% from RMB 147,394 thousand in 2023 [25] - Revenue from external customers in China was RMB 106,577 thousand, a decline of 30.5% from RMB 153,472 thousand in 2023 [26] - Revenue from overseas customers increased significantly to RMB 43,077 thousand, up 127.5% from RMB 18,922 thousand in 2023 [26] - Revenue from compatible printer consumable chips fell by about 18.9% from RMB 142.2 million to RMB 115.8 million, primarily due to a decline in sales of laser and inkjet printer chips [53] - Revenue from other chips increased by approximately 45.4% from RMB 4.6 million to RMB 6.7 million, driven by higher sales of IoT products [54] - Revenue from the trading of integrated circuits and other printer consumable components rose by approximately 27.8% from RMB 21.3 million to RMB 27.2 million, mainly due to demand for ink cartridges and toner [55] Expenses and Costs - Research and development expenses increased to RMB 19,142,000 from RMB 16,282,000 [5] - The company reported a significant increase in research and development expenses, which rose to RMB 9,706,000 in 2024 from RMB 7,661,000 in 2023, reflecting a growth of 26.7% [32] - Sales and distribution expenses rose by approximately 39.4% to about RMB 9.9 million, driven by increased marketing activities to enhance the development of new IoT chip and online sales [65] - Administrative expenses decreased by approximately 9.5% to about RMB 22.9 million, mainly due to reduced costs related to material write-offs and lower sales-related taxes [66] - The cost of sales and services decreased from approximately RMB 105.4 million to RMB 101.4 million, primarily due to lower costs of integrated circuit chips [57] Assets and Liabilities - Total assets less current liabilities amounted to RMB 371,582,000 (2023: RMB 371,335,000) [6] - Non-current assets totaled RMB 79,235,000, an increase from RMB 25,731,000 in the previous year [6] - The total equity of the company was RMB 370,787,000, slightly up from RMB 370,219,000 in 2023 [7] - Trade receivables increased to RMB 67,349,000 in 2024 from RMB 58,433,000 in 2023, representing a growth of 15.5% [30] - Contract liabilities rose to RMB 524,000 in 2024 from RMB 395,000 in 2023, an increase of 32.6% [30] - Current assets decreased from approximately RMB 364.5 million to RMB 331.0 million, primarily due to the reallocation of funds to non-current bank deposits [69] - Inventory decreased from approximately RMB 40.5 million to RMB 33.7 million, mainly due to reduced raw material purchases [72] - Trade payables increased from RMB 6.2 million to RMB 18.0 million, primarily due to purchasing more printer-related products [75] Shareholder Information - Major shareholders include GMTL with approximately 29.27% equity, controlled by Mr. Zheng, and Loyal with approximately 18.80% equity, controlled by Mr. Yu [100][102] - Mr. Zheng holds 151,812,500 shares, representing 29.27% of the total shares [98] - Mr. Lin holds 86,250,000 shares, representing 16.63% of the total shares [100] Strategic Initiatives - The company plans to continue developing its Internet of Things (IoT) business strategy to leverage research capabilities and expand business scope [93] - The establishment of an online store aims to diversify sales platforms and enable the group to sell products overseas [93] - The core strategy includes enhancing product development capabilities and diversification, strengthening sales and marketing efforts to align with product portfolio expansion, and improving back-office functions to support business growth [94] - The company has initiated online sales for compatible printer consumables and toner, aiming to diversify sales channels and product categories [50] Economic Outlook - The economic outlook remains uncertain due to the US-China trade war and geopolitical tensions, impacting growth prospects [45] - The board anticipates that the economic instability will persist in the foreseeable future, affecting the potential for acquisitions in the integrated circuit design sector [117] Future Plans and Proceeds Utilization - Approximately 51.4% of the net proceeds will be used to enhance the company's product development capabilities and diversify its product offerings [109] - Approximately 16.8% of the net proceeds will be allocated for the acquisition of integrated circuit design companies to accelerate hardware design capabilities [109] - The expected timeline for the utilization of unutilized net proceeds is extended to December 31, 2024 [110] - The company plans to enhance its e-commerce presence by establishing online stores and increasing digital marketing efforts [123]

[Definitions](index=2&type=section&id=%E9%87%8B%E7%BE%A9) [Company Information](index=5&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) [Financial Highlights](index=7&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) The Group experienced a significant decline in revenue and profit in the first half of 2024, primarily due to a decrease in the average selling price of compatible printer consumable chips and the early-stage development of the IoT chip business; total assets slightly increased, but total liabilities rose substantially, leading to a decrease in net assets and current ratio, and an increase in the leverage ratio Condensed Consolidated Statement of Profit or Loss Summary (For the six months ended June 30) | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | | Revenue | 65,733 | 87,058 | (24.5)% | | Cost of Sales and Services | (44,413) | (51,444) | (13.7)% | | Gross Profit | 21,320 | 35,614 | (40.1)% | | Gross Margin | 32% | 41% | (9) percentage points | | Profit Before Tax | 429 | 17,584 | (97.6)% | | Profit for the Period | 405 | 14,932 | (97.3)% | | Basic and Diluted Earnings Per Share (RMB) | 0.001 | 0.029 | (96.6)% | Condensed Consolidated Statement of Financial Position Summary | Metric | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | Change Percentage | | :--- | :--- | :--- | :--- | | Total Assets | 395,363 | 390,209 | 1.3% | | Total Liabilities | 33,907 | 19,990 | 69.6% | | Net Assets | 361,456 | 370,219 | (2.4)% | Key Financial Ratios | Metric | June 30, 2024 | December 31, 2023 | Percentage Point Change | | :--- | :--- | :--- | :--- | | Current Ratio | 10.8 | 19.3 | (8.5) percentage points | | Quick Ratio | 9.6 | 17.2 | (7.6) percentage points | | Leverage Ratio | 0.03 | 0 | 0.03 percentage points | [Management Discussion and Analysis](index=8&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) [Business Review](index=8&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group primarily engages in the research, design, development, and sale of compatible printer consumable chips and other chips, along with providing related services; despite increased sales volume of compatible printer consumable chips, intense competition led to a significant decline in average selling price and gross margin, while the IoT chip business remains in its early stages with unsatisfactory gross margins, prompting the Group to initiate online sales to expand its distribution channels - The Group's primary business involves the research, design, development, and sale of compatible printer consumable chips (for desktop laser, inkjet, and commercial printers) and IoT-related chips (Hall sensors, power management ICs, battery charging management ICs)[9](index=9&type=chunk) - Sales volume of compatible printer consumable chips increased by **26.9%** year-on-year to approximately **7,136,000 units**, but the average selling price fell by **31.3%** to **RMB 8.1 per piece**, with gross margin narrowing from **40.9% to 32.4%**[10](index=10&type=chunk) Number of New Compatible Printer Consumable Chip Models Developed | Application Product | Number of Chips Successfully Developed by June 30, 2024 | Number of Chips Successfully Developed by June 30, 2023 | | :--- | :--- | :--- | | Desktop Laser Printers | 297 | 98 | | Desktop Inkjet Printers | 51 | 0 | | Commercial Printers | 45 | 8 | | **Total** | **393** | **106** | - The IoT chip business successfully developed **45 chips**, including low-dropout regulators (LDOs), but gross margin is currently unsatisfactory due to early market development and weak recovery in China's manufacturing sector[11](index=11&type=chunk) - The Group has launched online sales, primarily offering compatible printer consumables, toner, and other finished printer consumable products to generate additional revenue streams[12](index=12&type=chunk) [Financial Review](index=11&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) Total revenue for the period decreased by 24.5% year-on-year, mainly due to a decline in the average selling price of compatible printer consumable chips and reduced revenue from trading integrated circuits and other printer consumable components; gross profit and net profit both significantly declined, with gross margin narrowing, while other chip sales increased but had a negative gross margin, and the company tightened credit control, leading to reduced revenue in some businesses, though online sales achieved a higher gross margin Revenue Breakdown by Product Category (For the six months ended June 30) | Product Category | 2024 Revenue (RMB thousands) | 2024 % of Total Revenue | 2023 Revenue (RMB thousands) | 2023 % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Sales of Chips | 57,935 | 88.2 | 66,473 | 76.3 | | - Desktop Laser Printers | 44,395 | 67.5 | 52,870 | 60.7 | | - Desktop Inkjet Printers | 12,242 | 18.6 | 12,429 | 14.3 | | - Commercial Printers | 1,298 | 2.1 | 1,174 | 1.3 | | Sales of Other Chips | 2,508 | 3.8 | 2,067 | 2.4 | | Chip Technology and Design Services | – | – | 3,443 | 4.0 | | Trading of Integrated Circuits and Other Printer Consumable Components | 5,290 | 8.0 | 15,075 | 17.3 | | **Total** | **65,733** | **100** | **87,058** | **100** | - Revenue from sales of compatible printer consumable chips decreased by **12.8%** to **RMB 57.9 million**, primarily due to reduced revenue from desktop laser printer chips, as average selling prices fell by **31.3%** due to industry competition despite increased sales volume[15](index=15&type=chunk) - Revenue from sales of other chips increased by **21.3%** to **RMB 2.5 million**, mainly driven by the launch of new IoT chips, particularly power chips[16](index=16&type=chunk) - Revenue from trading integrated circuits and other printer consumable components decreased by **64.9%** to **RMB 5.3 million**, primarily due to the Group's tightened credit control, with online sales contributing **RMB 2.3 million** in revenue[17](index=17&type=chunk) Gross Profit and Gross Margin by Product Category (For the six months ended June 30) | Product Category | 2024 Gross Profit (RMB thousands) | 2024 Gross Margin (%) | 2023 Gross Profit (RMB thousands) | 2023 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Sales of Chips | 20,707 | 35.7 | 31,827 | 47.9 | | - Desktop Laser Printers | 21,629 | 48.7 | 30,242 | 57.2 | | - Desktop Inkjet Printers | (1,483) | (13.8) | 1,059 | 8.5 | | - Commercial Printers | 561 | 60.9 | 526 | 44.8 | | Sales of Other Chips | (117) | (4.7) | 328 | 15.9 | | Chip Technology and Design Services | – | – | 2,661 | 77.3 | | Trading of Integrated Circuits and Other Printer Consumable Components | 730 | 13.8 | 798 | 5.3 | | **Total** | **21,320** | **32.4** | **35,614** | **40.9** | - Gross profit from sales of compatible printer consumable chips decreased, with gross margin falling from **47.9% to 35.7%**, primarily due to industry competition and a higher proportion of older chip models sold, while desktop inkjet printer chips recorded a **negative gross margin of 13.8%**[21](index=21&type=chunk) - Gross margin for sales of other chips was **negative 4.7%**, reflecting the early development stage of the IoT business and the need for competitive pricing to attract customers[22](index=22&type=chunk) - Gross margin from trading integrated circuits and other printer consumable components increased from **5.3% to 13.8%**, primarily benefiting from the higher gross margin of online sales at **31.5%**[23](index=23&type=chunk) - Net other income decreased by **31.6%** to **RMB 4.2 million**, mainly due to reduced exchange gains resulting from fluctuations in the RMB against the USD[25](index=25&type=chunk) - Selling and distribution expenses increased by **42.2%** to **RMB 4.2 million**, primarily for strengthening marketing activities for new businesses such as IoT chips and online sales[27](index=27&type=chunk) - Profit for the period significantly decreased by **97.3%** to **RMB 0.4 million**, with net profit margin falling from **17.2% to 0.6%**, mainly due to the decline in gross margin of the compatible printer consumable chip business[30](index=30&type=chunk) - Net current assets decreased from **RMB 345.6 million** to **RMB 330.2 million**, primarily due to a reduction in trade receivables and an increase in trade payables and bank borrowings[31](index=31&type=chunk) Debt Details | Debt Category | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Bank borrowings due within one year | 10,000 | – | | Current lease liabilities | 813 | 1,411 | | Non-current lease liabilities | 250 | 467 | | **Total** | **11,063** | **1,878** | [Outlook and Future Plans](index=17&type=section&id=%E5%B1%95%E6%9C%9B%E5%8F%8A%E6%9C%AA%E4%BE%86%E8%A8%88%E5%8A%83) Despite ongoing global economic uncertainties and industry competition, management anticipates improved performance in the second half of 2024 compared to the first half, driven by new product launches, reduced production costs, market expansion, and increased fixed asset investments - Management expects performance in the second half of 2024 to be better than the first half due to the following reasons[39](index=39&type=chunk) - More new models of compatible printer chips will be launched, which are expected to command higher gross margins[39](index=39&type=chunk) - The Group has successfully designed its own raw material integrated circuits, which is expected to significantly reduce production costs[39](index=39&type=chunk) - Enhanced market development efforts, increased headcount, establishment of online sales platforms, expansion of product categories, and building a more complete industry chain[39](index=39&type=chunk) - Consideration will be given to increasing fixed asset investments to enhance production efficiency[39](index=39&type=chunk) - As of June 30, 2024, the Group had no significant plans for investments or acquisitions of capital assets[39](index=39&type=chunk) [Other Financial Information](index=18&type=section&id=%E5%85%B6%E4%BB%96%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) The Group primarily funds its operations through cash generated from operations, debt financing, and proceeds from its listing; cash and cash equivalents increased, but net current assets and net assets slightly decreased, and the leverage ratio rose due to increased bank borrowings, though the overall financial position remains sound, with no significant asset pledges, contingent liabilities, or major acquisitions/disposals, and foreign exchange risks are closely monitored - The Group primarily funds its operations through cash generated from operations, debt financing, and proceeds from its listing[40](index=40&type=chunk) - As of June 30, 2024, cash and cash equivalents were approximately **RMB 230.9 million** (December 31, 2023: **RMB 183.8 million**)[40](index=40&type=chunk) - As of June 30, 2024, net current assets were approximately **RMB 330.2 million** (December 31, 2023: **RMB 345.6 million**), and net assets were approximately **RMB 361.5 million** (December 31, 2023: **RMB 370.2 million**)[40](index=40&type=chunk) - As of June 30, 2024, total bank borrowings were approximately **RMB 10 million** (December 31, 2023: zero), denominated in RMB, unsecured, and interest-bearing[40](index=40&type=chunk) - As of June 30, 2024, the leverage ratio was approximately **2.8%** (December 31, 2023: **0.0%**), primarily due to increased bank borrowings, but the financial position remains sound[41](index=41&type=chunk) - The Group had no asset pledges or significant contingent liabilities at the end of the reporting period[42](index=42&type=chunk) - The Group is exposed to foreign exchange risk from fluctuations in the RMB against the USD or HKD, but there were no significant translation impacts during the period, and no hedging activities are currently undertaken[43](index=43&type=chunk) - As of June 30, 2024, the Group had approximately **156 full-time employees** and provides regular training and share option schemes as incentives[44](index=44&type=chunk) - The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2024[45](index=45&type=chunk) [Other Information](index=19&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Disclosure of Interests](index=19&type=section&id=%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) This section discloses the interests and short positions of directors, chief executives, and substantial shareholders in the Company's shares, with Mr. Zheng Xianhui and Mr. Yu holding significant shares through controlled corporations, and Mr. Lin being a beneficial owner Directors' and Chief Executives' Interests in Shares (As of June 30, 2024) | Director's Name | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Zheng Xianhui | Interest in controlled corporation | 151,812,500 (L) | 29.27% | | Mr. Lin Ziliang | Beneficial owner | 86,250,000 (L) | 16.63% | Major Shareholders' Interests in Shares (As of June 30, 2024) | Shareholder's Name/Name | Capacity/Nature of Interest | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | GMTL | Beneficial owner | 151,812,500 (L) | 29.27% | | Mr. Zheng Xianhui | Interest in controlled corporation | 151,812,500 (L) | 29.27% | | Zhonghao | Beneficial owner | 97,500,000 (L) | 18.80% | | Mr. Yu Yiding | Interest in controlled corporation | 97,500,000 (L) | 18.80% | | Mr. Lin Ziliang | Beneficial owner | 86,250,000 (L) | 16.63% | [Share Option Scheme](index=22&type=section&id=%E8%B3%BC%E8%82%A1%E6%AC%8A%E8%A8%88%E5%8A%83) The Company adopted a share option scheme on February 26, 2021, to grant options to eligible persons to subscribe for shares, but no options have been granted under the scheme to date - The Company adopted a share option scheme on **February 26, 2021**, with a ten-year validity, allowing the grant of share options to employees, directors, consultants, suppliers, customers, and shareholders[49](index=49&type=chunk) - No share options have been granted by the Company under the scheme since its adoption[49](index=49&type=chunk) [Arrangements for Directors to Purchase Shares or Debentures](index=22&type=section&id=%E8%91%A3%E4%BA%8B%E8%B3%BC%E8%B2%B7%E8%82%A1%E4%BB%BD%E6%88%96%E5%82%B5%E6%AC%8A%E8%AD%89%E7%9A%84%E5%AE%89%E6%8E%92) During the reporting period, no directors or their associates were granted or exercised any rights to benefit from purchasing the Company's shares or debentures, nor did the Company enter into any such arrangements - During the relevant period, no directors of the Company or their respective spouses or minor children were granted or exercised any rights to benefit from purchasing the Company's shares or debentures[50](index=50&type=chunk) - Neither the Company, its holding company, nor any of its subsidiaries entered into any arrangements enabling directors to acquire benefits by purchasing shares or debt securities (including debentures) of the Company or any other corporation[50](index=50&type=chunk) [Directors' and Major Shareholders' Competing Interests](index=22&type=section&id=%E8%91%A3%E4%BA%8B%E8%88%87%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E6%96%BC%E7%AB%B6%E7%88%AD%E6%AC%8A%E7%9B%8A%E7%9A%84%E6%AC%8A%E7%9B%8A) During the reporting period, no directors or their close associates, other than members of the Group, held any interests in businesses that compete or might compete with the Group's business - During the relevant period, no directors or their respective close associates (other than members of the Group) were required to disclose any interests in businesses that compete or might directly or indirectly compete with the Group's business under Listing Rule 8.10[51](index=51&type=chunk) [Sufficiency of Public Float](index=22&type=section&id=%E8%B6%B3%E5%A4%A0%E7%9A%84%E5%85%AC%E7%9C%BE%E6%8C%81%E8%82%A1%E9%87%8F) The Company maintained a sufficient public float as required by the Listing Rules during the reporting period - The Company maintained the public float required by the Listing Rules during the relevant period[52](index=52&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=22&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the reporting period, neither the Company nor any of its subsidiaries engaged in any activities involving the purchase, sale, or redemption of the Company's listed securities - During the relevant period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[52](index=52&type=chunk) [Going Concern](index=22&type=section&id=%E6%8C%81%E7%BA%8C%E7%B6%93%E7%87%9F) Based on its current financial position and available financing, the Group possesses sufficient financial resources to continue as a going concern for the foreseeable future - Based on its current financial position and available financing, the Group has sufficient financial resources to continue as a going concern for the foreseeable future[53](index=53&type=chunk) [Use of Net Proceeds from Listing](index=23&type=section&id=%E4%B8%8A%E5%B8%82%E6%89%80%E5%BE%97%E6%AC%BE%E9%A1%8D%E6%B7%A8%E9%A1%8D%E7%94%A8%E9%80%94) The Group received approximately RMB 98.5 million in net proceeds from its global offering, with approximately RMB 54.5 million utilized and RMB 44.0 million remaining unutilized as of June 30, 2024; the expected utilization timetable for the net proceeds has been extended to December 31, 2024, primarily due to the impact of the pandemic, intense competition for semiconductor R&D talent, and a cautious approach to acquisition strategies - The Group received net proceeds of approximately **HKD 118 million** (equivalent to approximately **RMB 98.5 million**) from its global offering and the exercise of the over-allotment option[54](index=54&type=chunk) Use and Application of Net Proceeds from Listing (As of June 30, 2024) | Use of Proceeds | Allocation as disclosed in Prospectus (RMB millions) | Actual Amount Utilized (RMB millions) | Unutilized Amount (RMB millions) | | :--- | :--- | :--- | :--- | | Enhancing product development capabilities and product diversification | 50.7 | 40.9 | 9.7 | | - Development of software components | 7.5 | 3.4 | 4.1 | | - Development of hardware components | 40.7 | 36.0 | 4.7 | | - Acquisition of new models of original brand printers from the market | 2.5 | 1.5 | 0.9 | | Acquisition of integrated circuit design companies to accelerate hardware design capabilities | 16.6 | – | 16.6 | | Expanding footprint in the compatible printer consumables industry through forward vertical expansion | 16.6 | – | 16.6 | | Strengthening sales and marketing efforts | 2.5 | 2.5 | – | | Strengthening back-office functions to support business growth | 2.5 | 1.3 | 1.3 | | General working capital | 9.9 | 9.9 | – | | **Total** | **98.5** | **54.5** | **44.0** | - The unutilized net proceeds of approximately **RMB 44.0 million** have an expected utilization period extended from **December 31, 2023, to December 31, 2024**[57](index=57&type=chunk)[58](index=58&type=chunk) - Key reasons for the delay in utilization include the slowdown in overall business development due to the COVID-19 pandemic, intense competition for semiconductor R&D talent in industries like AI, and a cautious approach to acquisitions amid an uncertain economic outlook[59](index=59&type=chunk)[60](index=60&type=chunk) [Corporate Governance Practices](index=25&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The Board of Directors is committed to adhering to the Corporate Governance Code set out in Appendix C1 of the Listing Rules and has adopted various measures to enhance internal controls and improve corporate governance standards - The Board is committed to upholding the Corporate Governance Code set out in Appendix C1 of the Listing Rules and has complied with its provisions[61](index=61&type=chunk) - The Company has adopted various measures to strengthen its internal control system, ongoing professional training for directors, and other regular practices[61](index=61&type=chunk) [Standard Code for Securities Transactions](index=26&type=section&id=%E8%AD%89%E5%88%B8%E4%BA%A4%E6%98%93%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The Company has adopted the Standard Code set out in Appendix C3 of the Listing Rules and confirms that all directors have fully complied with the code during the reporting period - The Company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 of the Listing Rules[62](index=62&type=chunk) - All directors have confirmed their full compliance with the required dealing standards set out in the Standard Code during the relevant period[62](index=62&type=chunk) [Review by Audit Committee](index=26&type=section&id=%E7%B6%93%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83%E5%AF%A9%E9%96%B1) The Audit Committee has reviewed the Company's unaudited financial statements, interim results announcement, and interim report for the reporting period, affirming that the adopted accounting treatments comply with applicable standards and Listing Rules - The Audit Committee comprises three independent non-executive directors, with Mr. Li Wah Hung as Chairman[62](index=62&type=chunk) - The Audit Committee has reviewed the Company's unaudited financial statements, interim results announcement, and interim report for the relevant period with management[62](index=62&type=chunk) - The Committee is satisfied that the accounting treatments adopted by the Company comply with applicable accounting standards and the requirements of the Listing Rules, and that adequate disclosures have been made[62](index=62&type=chunk) [Events After the Reporting Period](index=26&type=section&id=%E6%9C%89%E9%97%9C%E6%9C%9F%E9%96%93%E5%BE%8C%E7%9A%84%E4%BA%8B%E9%A0%85) As of the approval date of this interim report, no significant events have occurred subsequent to the reporting period for the Group - No significant events occurred after the relevant period up to the date of approval of this interim report[63](index=63&type=chunk) [Review Report on Condensed Consolidated Interim Financial Statements](index=27&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) The independent auditor has reviewed the Group's condensed consolidated interim financial statements in accordance with Hong Kong Standard on Review Engagements 2410 and found no material matters inconsistent with Hong Kong Accounting Standard 34 - The auditor has reviewed the Group's condensed consolidated interim financial statements, which were prepared in accordance with Hong Kong Accounting Standard 34[64](index=64&type=chunk) - The scope of the review is substantially less than that of an audit, and therefore no audit opinion is expressed[65](index=65&type=chunk) - Based on the review, the auditor has not found any matters that cause them to believe the condensed consolidated interim financial statements are not prepared in all material respects in accordance with Hong Kong Accounting Standard 34[66](index=66&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=29&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2024, the Group's revenue was RMB 65,733 thousand, gross profit was RMB 21,320 thousand, profit for the period was RMB 405 thousand, and basic and diluted earnings per share were RMB 0.001, representing a significant decrease from the prior year Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 65,733 | 87,058 | | Cost of sales and services | (44,413) | (51,444) | | Gross profit | 21,320 | 35,614 | | Net other income | 4,210 | 6,143 | | Research and development expenses | (9,034) | (9,011) | | Selling and distribution expenses | (4,222) | (2,970) | | Administrative expenses | (11,155) | (12,025) | | Finance costs | (130) | (86) | | Profit before tax | 429 | 17,584 | | Income tax | (24) | (2,652) | | Profit for the period attributable to owners of the Company | 405 | 14,932 | | Total comprehensive income for the period attributable to owners of the Company | 523 | 16,692 | | Earnings per share – basic and diluted | RMB 0.001 | RMB 0.029 | [Condensed Consolidated Statement of Financial Position](index=30&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2024, the Group's total assets were RMB 395,363 thousand, with current assets accounting for RMB 363,853 thousand; total liabilities were RMB 33,907 thousand, and net assets were RMB 361,456 thousand, showing a significant increase in total liabilities and a slight decrease in net assets compared to the end of 2023 Condensed Consolidated Statement of Financial Position (As of June 30, 2024) | Metric | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | **Non-current assets** | | | | Property, plant and equipment | 6,405 | 4,886 | | Intangible assets | 21,288 | 15,919 | | Deferred tax assets | 1,196 | 1,132 | | **Total non-current assets** | **31,510** | **25,731** | | **Current assets** | | | | Inventories | 40,416 | 40,454 | | Trade receivables | 55,573 | 58,433 | | Deposits, prepayments and other receivables | 26,648 | 21,765 | | Financial assets at fair value through profit or loss | 10,000 | 60,000 | | Cash and cash equivalents | 230,853 | 183,826 | | **Total current assets** | **363,853** | **364,478** | | **Current liabilities** | | | | Trade payables | 13,369 | 6,187 | | Accruals and other payables | 6,231 | 8,084 | | Bank borrowings | 10,000 | – | | Lease liabilities | 813 | 1,411 | | **Total current liabilities** | **33,657** | **18,874** | | **Net current assets** | **330,196** | **345,604** | | **Net assets** | **361,456** | **370,219** | | **Total equity** | **361,456** | **370,219** | [Condensed Consolidated Statement of Changes in Equity](index=32&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) For the six months ended June 30, 2024, the Group's total equity decreased from RMB 370,219 thousand at the beginning of the year to RMB 361,456 thousand, primarily due to lower profit contribution for the period and dividend payments Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2024) | Item | Share Capital (RMB thousands) | Share Premium (RMB thousands) | Other Reserves (RMB thousands) | Statutory Reserve (RMB thousands) | Exchange Reserve (RMB thousands) | Retained Earnings (RMB thousands) | Total Reserves (RMB thousands) | Total Equity (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Balance at January 1, 2024 | 4,325 | 141,923 | 8,460 | 34,500 | 5,043 | 175,968 | 365,894 | 370,219 | | Profit for the period | – | – | – | – | – | 405 | 405 | 405 | | Exchange differences arising from translation of foreign operations | – | – | – | – | 118 | – | 118 | 118 | | Dividends paid for prior year | – | (9,286) | – | – | – | – | (9,286) | (9,286) | | Balance at June 30, 2024 | 4,325 | 132,637 | 8,460 | 34,500 | 5,161 | 176,373 | 357,131 | 361,456 | Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30, 2023) | Item | Share Capital (RMB thousands) | Share Premium (RMB thousands) | Other Reserves (RMB thousands) | Statutory Reserve (RMB thousands) | Exchange Reserve (RMB thousands) | Retained Earnings (RMB thousands) | Total Reserves (RMB thousands) | Total Equity (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Balance at January 1, 2023 | 4,325 | 159,872 | 8,460 | 31,186 | 3,879 | 156,070 | 359,467 | 363,792 | | Profit for the period | – | – | – | – | – | 14,932 | 14,932 | 14,932 | | Exchange differences arising from translation of foreign operations | – | – | – | – | 1,760 | – | 1,760 | 1,760 | | Transfer to statutory reserve | – | – | – | 1,985 | – | (1,985) | – | – | | Dividends paid for prior year | – | (17,949) | – | – | – | – | (17,949) | (17,949) | | Balance at June 30, 2023 | 4,325 | 141,923 | 8,460 | 33,171 | 5,639 | 169,017 | 358,210 | 362,535 | [Condensed Consolidated Statement of Cash Flows](index=34&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2024, the Group's net cash from operating activities was RMB 3,900 thousand, net cash from investing activities was RMB 42,804 thousand, and net cash used in financing activities was RMB 239 thousand, with cash and cash equivalents at period-end significantly increasing to RMB 230,853 thousand from the beginning of the year Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Cash Flow Category | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Net cash from operating activities | 3,900 | 12,385 | | Net cash from investing activities | 42,804 | 1,859 | | Net cash used in financing activities | (239) | (20,008) | | Net increase/(decrease) in cash and cash equivalents | 46,465 | (5,764) | | Cash and cash equivalents at January 1 | 183,826 | 277,131 | | Effect of exchange rate changes | 562 | 1,746 | | Cash and cash equivalents at June 30 | 230,853 | 273,113 | [Notes to the Condensed Consolidated Interim Financial Statements](index=35&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) [1. General Information](index=35&type=section&id=1.%20%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) Megaforce Holdings Limited was incorporated in the Cayman Islands and listed on the Main Board of the Hong Kong Stock Exchange, with its principal business being investment holding and its subsidiaries primarily engaged in the research, design, development, and sale of compatible printer consumable chips in China - The Company was incorporated in the Cayman Islands on **June 22, 2016**, and its shares are listed on the Main Board of The Stock Exchange of Hong Kong[73](index=73&type=chunk) - The Group is principally engaged in the research, design, development, and sale of compatible printer consumable chips[73](index=73&type=chunk) [2. Basis of Preparation](index=35&type=section&id=2.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) These condensed consolidated interim financial statements are prepared in accordance with the Hong Kong Listing Rules and Hong Kong Accounting Standard 34, presented in RMB, and have been reviewed by an independent auditor but are unaudited - The condensed consolidated interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[74](index=74&type=chunk) - The statements are presented in RMB, with all amounts rounded to the nearest thousand[74](index=74&type=chunk) - These statements are unaudited but have been reviewed by BDO Limited, Hong Kong[74](index=74&type=chunk) [3. Changes in Accounting Policies](index=36&type=section&id=3.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95) The Group has applied several revised Hong Kong Financial Reporting Standards, including amendments related to supplier finance arrangements, lease liabilities in sale and leaseback transactions, and the classification of liabilities as current or non-current, none of which had a material impact on these condensed consolidated interim financial statements - The Group has applied several revised Hong Kong Financial Reporting Standards issued by the HKICPA, but these had no impact on the condensed consolidated interim financial statements[75](index=75&type=chunk) - Amendments include disclosure requirements for supplier finance arrangements under HKAS 7 and HKFRS 7[75](index=75&type=chunk) - Amendments also relate to the recognition of lease liabilities in sale and leaseback transactions under HKFRS 16, and the substance and existence of the right to classify liabilities as current or non-current under HKAS 1[75](index=75&type=chunk) [4. Revenue and Segment Reporting](index=37&type=section&id=4.%20%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E5%A0%B1%E5%91%8A) The Group considers its business as a single operating segment, with primary revenue derived from chip sales and trading integrated circuits and other printer consumable components; while the Chinese market contributes most revenue, overseas revenue proportion has increased, and non-current assets are mainly concentrated in China - The Group's chief operating decision-maker views the business as a single operating segment, hence no segment information is presented[76](index=76&type=chunk) Revenue from Contracts with Customers Breakdown (For the six months ended June 30) | Product/Service | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Sales of chips | 60,443 | 66,473 | | Trading of integrated circuits and other printer consumable components | 5,290 | 17,142 | | Chip technology and design services | – | 3,443 | | **Total** | **65,733** | **87,058** | | Timing of revenue recognition: At a point in time | 65,733 | 87,058 | External Revenue by Customer Location (For the six months ended June 30) | Location | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | China | 52,331 | 80,422 | | Overseas | 13,402 | 6,636 | | **Total** | **65,733** | **87,058** | Non-current Assets by Asset Location | Location | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | China | 27,075 | 19,965 | | Overseas | 618 | 840 | | **Total** | **27,693** | **20,805** | [5. Seasonality of Operations](index=38&type=section&id=5.%20%E6%A5%AD%E5%8B%99%E5%AD%A3%E7%AF%80%E6%80%A7) The Group's business is seasonal, with higher sales revenue typically expected in the fourth quarter of each year, primarily due to marketing effects from industry exhibitions and customer demand for pre-stocking products ahead of potential supply disruptions during the Lunar New Year - The Group's principal business typically experiences higher sales revenue in the last quarter of each year[80](index=80&type=chunk) - Seasonality is primarily attributed to the marketing effect of the Zhuhai industry exhibition (usually held in October each year) and customer demand for stocking up products due to potential supply interruptions during the Lunar New Year period[80](index=80&type=chunk) [6. Net Other Income](index=39&type=section&id=6.%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E6%B7%A8%E9%A1%8D) The Group's net other income primarily includes bank interest income, net exchange gains, and government grants; for the six months ended June 30, 2024, net other income was RMB 4,210 thousand, a decrease from the prior year, mainly due to reduced exchange gains Net Other Income Analysis (For the six months ended June 30) | Item | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Bank interest income | 2,074 | 2,960 | | Net exchange gains | 474 | 2,011 | | Government grants | 1,619 | 1,068 | | Impact of lease modifications | – | 6 | | Miscellaneous income | 43 | 98 | | **Total** | **4,210** | **6,143** | - Government grants primarily include funding for the Group's innovation projects and VAT refunds, with no unfulfilled attached conditions[81](index=81&type=chunk) [7. Finance Costs](index=39&type=section&id=7.%20%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8) For the six months ended June 30, 2024, the Group's finance costs amounted to RMB 130 thousand, primarily comprising interest on bank borrowings and lease liabilities, representing an increase from the prior year Finance Costs Analysis (For the six months ended June 30) | Item | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Interest on bank borrowings | 94 | 20 | | Interest on lease liabilities | 36 | 66 | | **Total** | **130** | **86** | [8. Profit Before Tax](index=40&type=section&id=8.%20%E9%99%A4%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4) For the six months ended June 30, 2024, the Group's profit before tax was RMB 429 thousand, a significant decrease from the prior year, with key deductions including cost of inventories sold, amortization of intangible assets, depreciation of property, plant and equipment, and staff costs Items Deducted From/(Credited To) Profit Before Tax (For the six months ended June 30) | Item | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Cost of inventories recognised as an expense | 39,236 | 43,485 | | Amortisation of intangible assets | 1,725 | 1,217 | | Auditor's remuneration | 757 | 646 | | Depreciation of property, plant and equipment | 1,042 | 833 | | Depreciation of right-of-use assets | 788 | 989 | | Net provision for impairment losses on trade receivables | 560 | 81 | | Short-term lease expenses | 307 | 7 | | Research and development expenses (non-staff costs) | 4,594 | 4,929 | | Staff costs (including directors' emoluments) | 12,193 | 11,721 | [9. Income Tax](index=41&type=section&id=9.%20%E6%89%80%E5%BE%97%E7%A8%85) For the six months ended June 30, 2024, the Group's income tax expense was RMB 24 thousand, a significant decrease from the prior year; Chinese entities are subject to a 25% corporate income tax rate, with Zhuhai Megaforce enjoying a preferential 15% rate as a high-tech enterprise, while Hong Kong subsidiaries are subject to a two-tiered profits tax rate Income Tax Analysis (For the six months ended June 30) | Item | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Current tax – PRC Enterprise Income Tax | 42 | 2,515 | | Current tax – Underprovision in prior years | 46 | – | | Deferred tax – (Credited to)/charged to profit or loss for the period | (64) | 137 | | **Income tax expense** | **24** | **2,652** | - The Group's PRC entities are subject to a **25%** income tax rate, with Zhuhai Megaforce enjoying a preferential **15%** rate as a high-tech enterprise[85](index=85&type=chunk) - Hong Kong operating subsidiaries are subject to a two-tiered profits tax rate, with the first **HKD 2 million** taxed at **8.25%** and the remainder at **16.5%**[85](index=85&type=chunk) [10. Dividends](index=41&type=section&id=10.%20%E8%82%A1%E6%81%AF) The Company paid a final dividend of RMB 9,286 thousand for the year ended December 31, 2023, to its owners on June 28, 2024, and the Board does not recommend any interim dividend for the six months ended June 30, 2024 Dividends Paid (For the six months ended June 30) | Item | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Final dividend | 9,286 | 17,949 | - The Board does not recommend the payment of any dividends for the six months ended June 30, 2024, and 2023[86](index=86&type=chunk) [11. Basic and Diluted Earnings Per Share](index=42&type=section&id=11.%20%E6%AF%8F%E8%82%A1%E5%9F%BA%E6%9C%AC%E5%8F%8A%E6%94%A4%E8%96%84%E7%9B%88%E5%88%A9) For the six months ended June 30, 2024, profit for the period attributable to owners of the Company was RMB 405 thousand, resulting in basic and diluted earnings per share of RMB 0.001; diluted earnings per share are the same as basic earnings per share due to the absence of potential dilutive ordinary shares Basic and Diluted Earnings Per Share Calculation (For the six months ended June 30) | Item | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Profit for the period attributable to owners of the Company | 405 | 14,932 | | Weighted average number of ordinary shares (thousands of shares) | 518,750 | 518,750 | | Basic and diluted earnings per share (RMB) | 0.001 | 0.029 | - As there were no potential dilutive ordinary shares for the Group for the six months ended June 30, 2024, and 2023, diluted and basic earnings per share are the same[90](index=90&type=chunk) [12. Property, Plant and Equipment](index=42&type=section&id=12.%20%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99) For the six months ended June 30, 2024, the Group's net book value of property, plant and equipment increased to RMB 6.4 million, primarily due to the acquisition of office equipment, with no disposals during the period - For the six months ended June 30, 2024, the Group acquired office equipment items with a total cost of **RMB 3,348,000**[91](index=91&type=chunk) - There were no disposals of property, plant and equipment for the six months ended June 30, 2024[91](index=91&type=chunk) - The Group entered into a lease for its Shenzhen office during the six months ended June 30, 2024, but no new leases were entered into during the period[91](index=91&type=chunk) [13. Intangible Assets](index=43&type=section&id=13.%20%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2) For the six months ended June 30, 2024, the Group's net book value of intangible assets increased, primarily due to additions of circuit technology patents, electronic chip analysis machine software, and computer software, totaling RMB 7,095 thousand - For the six months ended June 30, 2024, the Group added circuit technology patents, software installed in electronic chip analysis machines, and computer software with a total cost of **RMB 7,095,000**[92](index=92&type=chunk) [14. Inventories](index=43&type=section&id=14.%20%E5%AD%98%E8%B2%A8) For the six months ended June 30, 2024, the Group reversed an inventory impairment loss of RMB 20 thousand, primarily due to an increase in the estimated net realizable value of certain printer consumable chips - For the six months ended June 30, 2024, **RMB 20,000** was recognized in profit or loss as a reduction in the amount of inventories recognized as an expense, representing a reversal of the write-down of inventories to their estimated net realizable value[93](index=93&type=chunk) - This reversal was due to an increase in the estimated net realizable value of certain printer consumable chips[93](index=93&type=chunk) [15. Trade Receivables](index=43&type=section&id=15.%20%E8%B2%BF%E6%98%93%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2024, the Group's net trade receivables amounted to RMB 55,573 thousand, a decrease from the end of 2023; the Group offers credit terms of 30 to 120 days and regularly reviews customer credit quality, with most trade receivables concentrated within 90 days Trade Receivables (As of June 30, 2024) | Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 58,548 | 60,889 | | Less: Loss allowance for trade receivables | (2,975) | (2,456) | | **Net** | **55,573** | **58,433** | - The Group offers credit terms of **30 to 120 days** to customers and regularly reviews customer credit quality[95](index=95&type=chunk) Ageing Analysis of Trade Receivables (By invoice date) | Ageing | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Within 90 days | 37,079 | 41,425 | | 91 to 180 days | 10,001 | 10,016 | | Over 180 days | 8,493 | 6,992 | | **Total** | **55,573** | **58,433** | [16. Deposits, Prepayments and Other Receivables](index=44&type=section&id=16.%20%E6%8C%89%E9%87%91%E3%80%81%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85) As of June 30, 2024, the Group's total deposits, prepayments, and other receivables amounted to RMB 29,269 thousand, an increase from the end of 2023, primarily due to higher prepayments to suppliers Details of Deposits, Prepayments and Other Receivables | Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Deposits and other receivables | 2,358 | 1,876 | | Other recoverable taxes | 5,009 | 3,735 | | **Subtotal (Current)** | **7,367** | **5,611** | | Prepayments – non-current | 2,621 | 3,794 | | Prepayments – current | 19,281 | 16,154 | | **Subtotal (Prepayments)** | **21,902** | **19,948** | | **Total** | **29,269** | **25,559** | [17. Financial Assets at Fair Value Through Profit or Loss](index=44&type=section&id=17.%20%E6%8C%89%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E5%85%A5%E6%90%8D%E7%9B%8A%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2) As of June 30, 2024, the Group's financial assets at fair value through profit or loss amounted to RMB 10,000 thousand, primarily wealth management products held with licensed banks, which are fair valued based on the present value of estimated future cash flows and are due on or before July 9, 2024 Financial Assets at Fair Value Through Profit or Loss | Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Wealth management products | 10,000 | 60,000 | - Wealth management products refer to deposits held with licensed banks whose interest rates are linked to various market indices[97](index=97&type=chunk) - All wealth management products will mature on or before **July 9, 2024**[97](index=97&type=chunk) [18. Trade Payables](index=45&type=section&id=18.%20%E8%B2%BF%E6%98%93%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2024, the Group's trade payables were RMB 13,369 thousand, a significant increase from the end of 2023, primarily due to increased raw material purchases; supplier credit terms typically range from 30 to 60 days Trade Payables (As of June 30, 2024) | Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 13,369 | 6,187 | - Credit terms granted by suppliers typically range from **30 to 60 days**[99](index=99&type=chunk) Ageing Analysis of Trade Payables (By invoice date) | Ageing | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 11,380 | 4,478 | | 31 to 90 days | 1,986 | 1,683 | | Over 90 days | 3 | 26 | | **Total** | **13,369** | **6,187** | [19. Accruals and Other Payables](index=45&type=section&id=19.%20%E6%87%89%E8%A8%88%E8%B2%BB%E7%94%A8%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2024, the Group's total accruals and other payables amounted to RMB 6,231 thousand, a decrease from the end of 2023 Details of Accruals and Other Payables | Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Accrued expenses | 3,610 | 5,179 | | Other payables | 1,503 | 1,517 | | Refund liabilities | 1,118 | 1,388 | | **Total** | **6,231** | **8,084** | [20. Bank Borrowings](index=46&type=section&id=20.%20%E9%8A%80%E8%A1%8C%E5%80%9F%E6%AC%BE) As of June 30, 2024, the Group incurred new bank borrowings of RMB 10,000 thousand, which are unsecured, denominated in RMB, repayable by September 26, 2024, and bear an annual interest rate of 2.90% Bank Borrowings (As of June 30, 2024) | Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Bank loans repayable within one year | 10,000 | – | - The bank loan is denominated in RMB, unsecured, repayable by **September 26, 2024**, and bears interest at an annual rate of **2.90%**[101](index=101&type=chunk) [21. Share Capital](index=46&type=section&id=21.%20%E8%82%A1%E6%9C%AC) As of June 30, 2024, the Company's issued and fully paid ordinary shares totaled 4,325 thousand shares, amounting to RMB 4,325 thousand, consistent with the end of 2023 Issued and Fully Paid Ordinary Shares | Date | Number of Shares (thousands of shares) | Amount (RMB thousands) | | :--- | :--- | :--- | | At January 1, 2023, December 31, 2023 and June 30, 2024 | 4,325 | 4,325 | [22. Capital Commitments](index=46&type=section&id=22.%20%E8%B3%87%E6%9C%AC%E6%89%BF%E8%AB%BE) As of June 30, 2024, the Group's capital commitments primarily consisted of commitments for the acquisition of intangible assets, totaling RMB 2,651 thousand, a decrease from the end of 2023 Capital Commitments (As of June 30, 2024) | Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | Commitments for acquisition of intangible assets | 2,651 | 3,864 | [23. Summary of Financial Assets and Liabilities by Category](index=47&type=section&id=23.%20%E6%8C%89%E9%A1%9E%E5%88%A5%E5%8A%83%E5%88%86%E7%9A%84%E9%87%91%E8%9E%8D%E8%B3%87%E7%94%A2%E5%8F%8A%E9%87%91%E8%9E%8D%E8%B2%A0%E5%82%B5%E6%A6%82%E8%A6%81) The Group's financial assets primarily include financial assets at fair value through profit or loss (wealth management products) and financial assets measured at amortized cost (trade receivables, deposits and other receivables, cash and cash equivalents); financial liabilities mainly comprise trade payables, accruals and other payables, bank borrowings, and lease liabilities, all measured at amortized cost Summary of Carrying Amounts of Financial Assets and Liabilities (As of June 30, 2024) | Item | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | | :--- | :--- | :--- | | **Financial assets** | | | | Financial assets at fair value through profit or loss | 10,000 | 60,000 | | Trade receivables | 55,573 | 58,433 | | Deposits and other receivables | 2,358 | 1,876 | | Cash and cash equivalents | 230,853 | 183,826 | | **Financial liabilities** | | | | Trade payables | 13,369 | 6,187 | | Accruals and other payables | 5,113 | 6,696 | | Bank borrowings | 10,000 | – | | Lease liabilities | 1,063 | 1,878 | - The carrying amounts of financial instruments measured at amortized cost approximate their fair values due to their short-term nature[105](index=105&type=chunk) [24. Fair Value Measurement](index=48&type=section&id=24.%20%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F) The Group's financial instruments measured at fair value are primarily wealth management products, classified as Level 3 within the fair value hierarchy; their fair value is calculated based on the present value of estimated future cash flows linked to underlying interest rates, floating rates, and participation rates - The fair values of the Group's financial assets and liabilities measured at amortized cost do not differ significantly from their carrying amounts[107](index=107&type=chunk) Financial Assets at Fair Value Through Profit or Loss (As of June 30, 2024) | Item | Level 1 (RMB thousands) | Level 2 (RMB thousands) | Level 3 (RMB thousands) | Total (RMB thousands) | | :--- | :--- | :--- | :--- | :--- | | Wealth management products (June 30, 2024) | – | – | 10,000 | 10,000 | | Wealth management products (December 31, 2023) | – | – | 60,000 | 60,000 | - The fair value of wealth management products is calculated based on the present value of estimated future cash flows linked to underlying interest rates (**0% to 1.1%**), floating rates (**0% to FR007 rate multiplied by participation rate**), and participation rates (**0% to 100%**)[108](index=108&type=chunk)[109](index=109&type=chunk) - The Group's wealth management products are classified as Level 3 within the fair value hierarchy, with no transfers between levels during the period/year[109](index=109&type=chunk) [25. Events After the Reporting Period](index=49&type=section&id=25.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) As of the approval date of these financial statements, no significant events requiring disclosure have occurred subsequent to the reporting period for the Group - As of the approval date of these financial statements, no significant events requiring disclosure have occurred subsequent to the reporting period for the Group[110](index=110&type=chunk)

Financial Performance - For the six months ended June 30, 2024, the group's revenue was approximately RMB 65,733,000, a decrease of about 24.5% compared to RMB 87,058,000 in the same period of 2023[1]. - The group's profit for the period was approximately RMB 405,000, a decrease of about 97.3% compared to RMB 14,932,000 in the same period of 2023[1]. - Gross profit for the six months ended June 30, 2024, was RMB 21,320,000, down from RMB 35,614,000 in the same period of 2023, representing a decline of approximately 40%[2]. - The company reported a profit attributable to owners of the company of RMB 405,000 for the six months ended June 30, 2024, a significant decrease of 97.3% compared to RMB 14,932,000 for the same period in 2023[21]. - Net profit decreased by approximately 97.3% from about RMB 14.9 million to about RMB 0.4 million, with the net profit margin dropping from 17.2% to 0.6%[49]. Revenue Breakdown - Sales of chips amounted to RMB 60,443 thousand, down 9.1% from RMB 66,473 thousand in the previous year[11]. - Revenue from integrated circuits and other printer consumables was RMB 5,290 thousand, a significant decline of 69.1% from RMB 17,142 thousand[11]. - External revenue from China was RMB 52,331 thousand, a decrease of 34.9% from RMB 80,422 thousand in the prior year[12]. - Revenue from the sale of compatible printer consumable chips decreased by approximately 12.8% from about RMB 66.5 million to approximately RMB 57.9 million[34]. - Revenue from the sale of integrated circuits and other printer consumables decreased by approximately 64.9% from about RMB 15.1 million to about RMB 5.3 million due to tightened credit control measures[36]. Expenses and Costs - Research and development expenses for the period were RMB 9,034,000, slightly increased from RMB 9,011,000 in the same period of 2023[2]. - Employee costs, including director remuneration, increased to RMB 12,193 thousand from RMB 11,721 thousand[15]. - Selling and distribution expenses increased by approximately 42.2% from about RMB 3.0 million to about RMB 4.2 million due to increased marketing activities[46]. - Pre-tax profit was impacted by inventory costs of RMB 39,236 thousand, a decrease from RMB 43,485 thousand in the previous year[16]. Assets and Liabilities - The total non-current assets as of June 30, 2024, amounted to RMB 31,510,000, an increase from RMB 25,731,000 as of December 31, 2023[3]. - Cash and cash equivalents as of June 30, 2024, were RMB 230,853,000, up from RMB 183,826,000 as of December 31, 2023[3]. - The total current liabilities as of June 30, 2024, were RMB 33,657,000, an increase from RMB 18,874,000 as of December 31, 2023[3]. - Trade receivables as of June 30, 2024, amounted to RMB 55,573,000, a decrease of 5.0% from RMB 58,433,000 as of December 31, 2023[23]. - Trade payables increased to RMB 13,369,000 as of June 30, 2024, compared to RMB 6,187,000 as of December 31, 2023, reflecting a growth of 116.3%[25]. Dividends and Shareholder Information - The company did not recommend any interim dividend for the six months ended June 30, 2024[1]. - The company declared a final dividend of RMB 9,286,000 for the six months ended June 30, 2024, down 48.3% from RMB 17,949,000 for the same period in 2023[19]. - As of June 30, 2024, major shareholders include GMTL with a 29.27% stake (151,812,500 shares) and Loyal with an 18.80% stake (97,500,000 shares)[69]. Future Outlook and Strategic Initiatives - The group expects better performance in the second half of 2024 compared to the first half, driven by the launch of new compatible printer chips with higher gross margins and cost reductions from self-designed integrated circuits[57]. - The company is actively seeking suitable acquisition opportunities to enhance hardware design capabilities and expand its presence in the compatible printer consumables industry[83]. - The company has entered the online sales business to increase sales channels and product categories, focusing on compatible printer consumables and toner[31]. Corporate Governance and Compliance - The company has adopted the corporate governance principles outlined in Appendix C1 of the listing rules to enhance internal control systems and ensure high levels of corporate governance[85]. - All directors have confirmed full compliance with the standard code for securities trading as per Appendix C3 of the listing rules during the relevant period[86]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited financial statements and confirmed compliance with applicable accounting standards and listing rules[87].

Financial Performance - Revenue for the fiscal year 2023 reached a record high of $96.77 billion, driven by strong performance in the Chinese market[110] - The company's net profit increased by 15% year-over-year, reaching $23.45 billion[110] - Total assets grew by 10% to $350.67 billion, reflecting robust financial health[110] - Revenue for 2023 was RMB 172.394 million, a slight decrease from RMB 173.367 million in 2022[52] - Gross profit for 2023 was RMB 66.977 million, down from RMB 90.625 million in 2022[52] - Profit before tax for 2023 was RMB 27.353 million, a significant drop from RMB 54.434 million in 2022[52] - Net profit for 2023 was RMB 23.212 million, compared to RMB 44.892 million in 2022[52] - The company's overall gross profit decreased by 26.1% to approximately RMB 67.0 million in 2023, with the gross margin dropping from 52.3% to 38.9%[88] - The gross margin for compatible printer consumable chips fell from 62.6% in 2022 to 43.8% in 2023 due to increased material costs and price competition[89] - The company's net profit margin decreased from 25.9% in 2022 to 13.5% in 2023, primarily due to changes in revenue and expenses[93] - Gross profit margin decreased from 52.3% for the year ended December 31, 2022, to 38.9% for the same period in 2023, primarily due to reduced gross profit[119] - Net profit margin decreased from 25.9% for the year ended December 31, 2022, to 13.5% for the same period in 2023, mainly due to reduced net profit[120] Investments and R&D - The company plans to invest $5 billion in new technology research and development over the next three years[110] - The company developed 955 new chip models in 2023, including 199 for desktop laser printers and 756 for desktop inkjet printers, and upgraded 62 chip models[61] - The company is considering acquiring an integrated circuit design company to accelerate hardware design capabilities[149] - The company's core strength lies in its R&D capabilities, which are a key success factor in the industry[165] Market Expansion and Sales - Market expansion efforts in Southeast Asia resulted in a 20% increase in regional sales, totaling $12.34 billion[110] - Strategic partnerships with local distributors in emerging markets boosted sales by 25%[110] - Sales revenue from compatible printer consumable chips increased by 0.4% to approximately RMB 142.8 million in 2023, driven by a rise in sales of inkjet printer chips[85] - The company plans to launch more new models of compatible ink cartridge chips and strengthen the new business of IoT chips in 2024[146] - The company aims to enhance product development capabilities and diversify its product portfolio[147] - The company will strengthen sales and marketing efforts to support the expansion of its product portfolio[149] - The company aims to maintain and consolidate its position as a leading supplier of compatible printer consumable chips in China[163] - The company plans to expand its footprint in the compatible printer consumable industry through forward vertical integration[165] Acquisitions and Partnerships - The company completed the acquisition of a major competitor for $8.9 billion, enhancing its market position[110] Customer and User Growth - The company's customer base grew by 12%, reaching 1.5 billion active users globally[110] Product Launches - New product launches contributed $15.67 billion to revenue, accounting for 16% of total sales[110] Financial Forecasts - The company forecasts a 10-12% revenue growth for the next fiscal year, driven by new product lines and market expansion[110] Board and Governance - The company maintains a policy of having at least one female director on the board, currently represented by Ms. Yu Erhao[45] - The nomination committee held one meeting during the reporting period to review board composition and assess the independence of non-executive directors[39] - The company's board diversity policy emphasizes gender, age, cultural and educational background, professional qualifications, skills, knowledge, and industry experience[43] - The nomination committee is responsible for ensuring board diversity and reviews the implementation and effectiveness of the board diversity policy annually[45] - The company's board of directors is pleased to present the annual report and audited consolidated financial statements for the year ended December 31, 2023[186] Employee and Workforce - The company employed 148 staff (excluding directors) as of December 31, 2023, with a female-to-male ratio of 1.2 (81 females and 67 males)[46] - As of December 31, 2023, the company had approximately 154 full-time employees, with 134 based in China and 20 in Taiwan, Hong Kong, and overseas[145] Financial Position and Liquidity - As of December 31, 2023, the company's net current assets were approximately RMB 345.6 million, with current assets decreasing to RMB 364.5 million and current liabilities decreasing to RMB 18.9 million[94] - Property, plant, and equipment net book value decreased from RMB 5.9 million as of December 31, 2022, to RMB 4.9 million as of December 31, 2023, mainly due to the termination of certain leases and annual depreciation[95] - Intangible assets net book value increased from RMB 13.5 million as of December 31, 2022, to RMB 15.9 million as of December 31, 2023, primarily due to the acquisition of patents[96] - Deposits, prepayments, and other receivables increased from RMB 10.8 million as of December 31, 2022, to RMB 21.8 million as of December 31, 2023, mainly due to prepayments for property, plant, and equipment, intangible assets, raw materials, and subcontracting services for multiple R&D projects[97] - Trade payables decreased from RMB 11.7 million as of December 31, 2022, to RMB 6.2 million as of December 31, 2023, due to slower procurement of raw materials[98] - Inventory increased from RMB 20.6 million as of December 31, 2022, to RMB 40.5 million as of December 31, 2023, mainly due to increased procurement of raw materials, particularly wafers[111] - Trade receivables decreased from RMB 75.2 million as of December 31, 2022, to RMB 58.4 million as of December 31, 2023, due to improved collection efforts[112] - The company's current ratio increased from 9.9 as of December 31, 2022, to 19.3 as of December 31, 2023, and the quick ratio increased from 9.4 to 17.2, indicating healthy short-term liquidity[116] - The company's leverage ratio was 0.0% as of December 31, 2023 (0.3% as of December 31, 2022), indicating a robust financial position with no financial borrowings[124] - The company's cash and cash equivalents amounted to approximately RMB 183.8 million, and fair-valued financial products were RMB 60.0 million as of December 31, 2023[135] - The net current assets of the company were approximately RMB 345.6 million, and the net assets were RMB 370.2 million as of December 31, 2023[135] - The company subscribed to two financial products with a total principal of RMB 50 million, with annual interest rates ranging from 1.99% to 2.79% and maturity periods of 7 to 92 days[127] - The company's financial products accounted for approximately 5.1% and 7.7% of the total assets as of December 31, 2023[159] Dividends and Shareholder Returns - The company plans to distribute a final dividend of RMB 0.0179 per share for the fiscal year ending December 31, 2023[57] - The company paid a final dividend of approximately RMB 13,141,000 for the year ended December 31, 2021, and approximately RMB 17,949,000 for the year ended December 31, 2022[188] Company History and Structure - The company was incorporated in the Cayman Islands on June 22, 2016, and its shares were listed on the Main Board of the Hong Kong Stock Exchange on March 31, 2021[187] - The company's registered office is located at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands[187] Leadership and Management - Mr. Wang Hua, CEO of the group and Zhuhai Meijia, has over 11 years of experience in the integrated circuit solutions industry and has been responsible for the overall management and operations of the company since 2017[196] - Ms. Lü Liang, CFO of the group, has extensive experience in financial management and joined the group in December 2019[197] - Mr. Chen Dajiang, an independent non-executive director, has over 20 years of experience in private equity investments across various industries, including semiconductors and life sciences[191] - Mr. Gao Yiping, an independent non-executive director, holds a Master of Science degree from National Taiwan University and is responsible for independently supervising the management of the group[194] - Mr. Hong Wenlong, a software department head at Meijia Yin Holdings (BVI) Taiwan Branch, has a background in electronic engineering and has been with the group since December 2015[200] - The company's secretary, Mr. Wong, has over 18 years of experience in the company secretarial field and has held various senior positions in listed companies[184] Operational Efficiency and Back-Office Support - The company will enhance back-office functions to support business growth[149] Future Plans and Strategies - The company has no significant investment or capital asset plans for the upcoming year as of December 31, 2023[165] - The company has no other significant investments during the relevant period[160]

Financial Performance - The group's revenue for the year ended December 31, 2023, decreased by approximately 0.6% to about RMB 172,394,000 compared to RMB 173,367,000 in 2022[3] - Gross profit for the same period decreased by approximately 26.1% to about RMB 66,977,000, down from RMB 90,625,000 in 2022[3] - Profit after tax for the year was approximately RMB 23,212,000, representing a decrease of about 48.3% from RMB 44,892,000 in 2022[3] - Basic earnings per share decreased by approximately 48.3% to about RMB 0.045, down from RMB 0.087 in 2022[3] - The company reported a profit before tax of RMB 25,482 thousand, an increase from RMB 23,511 thousand in 2022[35] - The income tax expense for 2023 was RMB 4,141,000, a decrease of 56.5% compared to RMB 9,542,000 in 2022[36] - The company reported a net profit of RMB 23,212,000 for 2023, down 48.3% from RMB 44,892,000 in 2022[41] - Net profit after tax decreased by approximately 48.3% from about RMB 44.9 million to about RMB 23.2 million, with the net profit margin dropping from 25.9% to 13.5%[74] - The company reported a net profit margin of 12% for the fiscal year, indicating strong operational efficiency[142] Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.0179 per share for the year, down from RMB 0.0346 per share in 2022, subject to shareholder approval[3] - The company declared a final dividend of RMB 17,949,000 for 2023, an increase of 36.2% from RMB 13,141,000 in 2022[40] Revenue Breakdown - Revenue from chip sales increased to RMB 147,394 thousand in 2023, up 3.6% from RMB 142,246 thousand in 2022[29] - Revenue from integrated circuits and other printer consumables decreased to RMB 21,274 thousand, down 31.6% from RMB 31,121 thousand in 2022[29] - Revenue from chip technology and design services was RMB 3,726 thousand, a new addition in 2023[29] - External revenue from customers in China was RMB 153,472 thousand, a decrease of 1.0% from RMB 155,012 thousand in 2022[30] - Revenue from compatible printer consumable chips increased by approximately 0.4% to about RMB 142.8 million, driven by the introduction of 756 new inkjet printer chip models[59] Expenses and Costs - Research and development expenses for the year were RMB 16,282,000, compared to RMB 18,254,000 in 2022, indicating a decrease in R&D investment[5] - R&D expenses (excluding employee costs) were RMB 7,661 thousand, down 20.5% from RMB 9,634 thousand in 2022[35] - Sales and service costs increased from approximately RMB 82.7 million to about RMB 105.4 million, mainly due to rising direct material costs[63] - Administrative expenses rose by approximately 13.9% from about RMB 22.2 million to about RMB 25.3 million, mainly due to increased costs related to material wastage[72] Assets and Liabilities - Total assets as of December 31, 2023, amounted to RMB 371,335,000, compared to RMB 365,470,000 in 2022[7] - Current liabilities decreased to RMB 18,874,000 from RMB 38,802,000 in 2022, reflecting improved liquidity management[7] - The company's cash and cash equivalents decreased to RMB 183,826,000 from RMB 277,131,000 in 2022, indicating a reduction in cash reserves[7] - Trade receivables decreased to RMB 58,433 thousand in 2023, down 22.3% from RMB 75,233 thousand in 2022[33] - Trade payables decreased to RMB 6,187,000 in 2023 from RMB 11,713,000 in 2022, a reduction of 47.2%[46] Financial Reporting Standards - The Group adopted revised Hong Kong Financial Reporting Standards, effective for the current accounting period, including HKFRS 17 on insurance contracts[9] - HKFRS 17, effective from January 1, 2023, introduces a consistent accounting method for insurance contracts, but has no significant impact on the Group's financial statements as it does not fall within its scope[10] - The amendments to HKAS 1 and HKFRS Practice Statement 2 enhance the disclosure of significant accounting policies, but do not affect the measurement or presentation of any items in the Group's consolidated financial statements[12] - The revision of HKAS 8 clarifies the definition of accounting estimates, with no significant impact on the Group's consolidated financial statements as the Group's methods are consistent with the amendments[14] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules Appendix C1, effective from December 31, 2023, to enhance internal control systems and ensure high corporate governance standards[128] - The audit committee, established on February 26, 2021, consists of three independent non-executive directors, ensuring compliance with the relevant listing rules[130] - The company's auditor, Hong Kong Lixin Dehao CPA Limited, has agreed to the consolidated financial statements, confirming that they comply with applicable accounting standards[132] Future Outlook and Strategy - The group anticipates a GDP growth target of about 5% for China in 2024, amidst a challenging global economic environment[104] - The company plans to launch more new compatible ink cartridge chips in 2024 to enhance its Internet of Things chip business[104] - The company aims to strengthen its market development strategy by establishing sales channels in target regions such as Shenzhen, Shanghai, and Taiwan[54] - The company is actively seeking suitable acquisition opportunities to complement its business strategy, particularly in the semiconductor sector[125] Employee and Shareholder Information - The group has approximately 154 full-time employees as of December 31, 2023, with 134 based in China and 20 in Taiwan, Hong Kong, and overseas[103] - The company maintains a public float in compliance with listing rules since its listing on March 31, 2021[118] - Major shareholders include Mr. Zheng and Mr. Yu, each controlling significant stakes of 29.27% and 18.80% respectively[113]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 87,058,000, representing a 14.7% increase from RMB 75,905,000 in 2022[14]. - Cost of sales and services increased by 40.1% to RMB 51,444,000 from RMB 36,725,000[14]. - Gross profit decreased by 9.2% to RMB 35,614,000, with a gross margin of 41%, down from 52%[14]. - Profit before tax fell by 25.6% to RMB 17,584,000 compared to RMB 23,649,000 in the previous year[14]. - Net profit for the period was RMB 14,932,000, a decrease of 25.3% from RMB 19,986,000[14]. - Basic and diluted earnings per share decreased by 25.6% to RMB 0.029 from RMB 0.039[14]. - The net profit decreased by approximately 25.0% from about RMB 20.0 million to approximately RMB 14.9 million, with the net profit margin dropping from 26.3% to 17.2%[44][45]. - The total comprehensive income for the period was RMB 16,692 thousand, down from RMB 23,096 thousand in the same period last year[101]. Assets and Liabilities - Total assets as of June 30, 2023, were RMB 388,799,000, a decrease of 3.8% from RMB 404,272,000[14]. - Total liabilities decreased significantly by 35.1% to RMB 26,264,000 from RMB 40,480,000[14]. - Net asset value slightly decreased by 0.3% to RMB 362,535,000 from RMB 363,792,000[14]. - The company's current assets net value was approximately RMB 344.2 million as of June 30, 2023, compared to RMB 345.0 million as of December 31, 2022[59]. - The total liabilities as of June 30, 2023, amounted to RMB 2.9 million, down from RMB 3.97 million as of December 31, 2022[55]. - The company had no bank borrowings as of June 30, 2023, compared to RMB 1.0 million as of December 31, 2022[60]. Revenue Breakdown - Revenue from compatible printer consumable chips rose by approximately 7.3% from about RMB 62.0 million to about RMB 66.5 million, driven by increased sales of desktop inkjet printer chips[26]. - Revenue from the IoT chip business, including Hall sensor chips, increased by approximately 12.3% to about RMB 2.1 million, reflecting strong demand in various sectors[27]. - Revenue from trading integrated circuits and other printer consumable components increased by approximately 25.8% from about RMB 12.0 million to about RMB 15.1 million, mainly due to increased sales of toner and drum components[28]. - Revenue from chip sales reached RMB 66,473,000, up 7.8% from RMB 62,041,000 in the previous year[120]. - Revenue from integrated circuits and other printer consumables increased to RMB 17,142,000, a rise of 23.4% from RMB 13,864,000[120]. - Revenue from chip technology and design services was RMB 3,443,000, a new revenue stream introduced in 2023[120]. Expenses and Costs - The sales and service costs increased from approximately RMB 36.7 million to about RMB 51.4 million, primarily due to higher procurement costs for materials related to inkjet products[31]. - Research and development expenses decreased by approximately 8.2% from about RMB 9.8 million to approximately RMB 9.0 million, mainly due to a reduction in the number of R&D staff[39]. - Selling and distribution expenses increased by approximately 36.4% from about RMB 2.2 million to approximately RMB 3.0 million, driven by higher depreciation and employee costs[40]. - Administrative expenses rose by approximately 23.7% from about RMB 9.7 million to approximately RMB 12.0 million, mainly due to increased inventory and travel expenses[41]. Market and Business Outlook - The company is focusing on expanding its market presence and developing new technologies[14]. - The company maintains an optimistic outlook for business growth, particularly in the compatible printer consumables chip business, expecting stable performance in the second half of 2023[56]. - The company plans to launch more new models of compatible printer consumables chips and continue building its customer base for IoT chips[56]. Corporate Governance and Compliance - The company has complied with the corporate governance code as per the listing rules during the relevant period[88]. - There have been no significant events after the reporting period up to the approval date of the interim report[93]. Employee and Recruitment - The company had approximately 134 full-time employees as of June 30, 2023, with a focus on recruitment, training, and employee benefits[67].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 MEGAIN Holding (Cayman) Co., Ltd. 美 佳 音 控 股 有 限 公 司* （於開曼群島註冊成立的有限公司） （股份代號：6939） 截 至2023年6月30日 止 六 個 月 的 中 期 業 績 公 告 摘要 截至2023年6月30日止六個月，本集團的收入約為人民幣87,058,000元，較2022 年同期約人民幣75,905,000元增加約14.7%； 截至2023年6月30日止六個月，本集團的期內利潤約為人民幣14,932,000元， 較2022年同期約人民幣19,986,000元減少約25.3%； 董事並不建議就截至2023年6月30日止六個月派付任何中期股息。 ...