Financial Performance - For the three months ended September 30, 2022, the company's revenue was RMB 2,671,000, a decrease of 67.6% compared to RMB 8,252,000 for the same period in 2021[5]. - The gross profit for the nine months ended September 30, 2022, was RMB 310,000, down 86.9% from RMB 2,203,000 in the same period of 2021[5]. - Total sales to external customers for the nine months ended September 30, 2022, amounted to RMB 11,395,000, a decrease from RMB 14,199,000 in the same period of 2021, representing a decline of approximately 19.7%[23]. - Other income and gains for the nine months ended September 30, 2022, amounted to RMB 1,790,000, down from RMB 2,269,000 in the same period of 2021[5]. - The group recorded a net loss of approximately RMB 14,263,000 for the nine months ended September 30, 2022, compared to a net loss of RMB 14,471,000 in the same period last year[35]. Loss and Liabilities - The company reported a loss before tax of RMB 14,263,000 for the nine months ended September 30, 2022, compared to a loss of RMB 14,471,000 for the same period in 2021, indicating a slight improvement[5]. - The company's net current liabilities as of September 30, 2022, were approximately RMB 228,058,000, raising significant doubts about its ability to continue as a going concern[7]. - As of September 30, 2022, the group's net current liabilities and total liabilities were approximately RMB 228,058,000 and RMB 128,683,000, respectively, indicating substantial uncertainty regarding the company's ability to continue as a going concern[26]. - The group had other borrowings amounting to approximately RMB 84,916,000, all of which were current liabilities[38]. Financial Strategies - The company is actively seeking financial support from shareholders and lenders to improve its liquidity situation[7]. - The company plans to improve its financial situation by issuing new shares or bonds to attract strategic investors and negotiating debt restructuring with shareholders and lenders[26]. - The company has implemented measures including debt restructuring discussions with shareholders and lenders to address its financial challenges[7]. Operational Adjustments - The group has been affected by the ongoing COVID-19 pandemic, which has impacted sales and financial performance[30]. - The group is actively adjusting its operational strategies in response to the pandemic to ensure sustainable development[30]. - The management team is focused on enhancing production processes and technology upgrades while actively expanding into civilian markets to increase sales channels[25]. Shareholding Structure - As of September 30, 2022, Zhang Shaohui holds 82,200,000 shares of domestic stock, representing approximately 41.34% of the company's domestic shares and 26.61% of the total share capital[45]. - Beijing Zhongze Chuangye Investment Management Co., Ltd. also holds 82,200,000 shares of domestic stock, equivalent to approximately 41.34% of the domestic shares and 26.61% of the total share capital[45]. - Taiyuan Changcheng Optoelectronics Co., Ltd. holds 80,160,000 shares of domestic stock, accounting for approximately 40.31% of the domestic shares and 25.95% of the total share capital[45]. - Beijing Yuankang Technology Co., Ltd. holds 34,000,000 shares of domestic stock, which is about 17.10% of the domestic shares and 11.01% of the total share capital[45]. Corporate Governance - The company has established an audit committee to review and supervise its financial reporting system, risk management, and internal control systems[61]. - The audit committee consists of two independent non-executive directors and one non-executive director, with Mr. Xu Yongfeng serving as the chairman[61]. - The company has complied with the corporate governance code as per GEM listing rules, except for the lack of insurance arrangements for directors facing legal actions due to budget constraints[58]. - The board consists of eight directors, including three executive directors and three independent non-executive directors[62]. Miscellaneous - The company has no plans to declare dividends for the nine months ended September 30, 2022, and 2021[18]. - The company did not purchase, sell, or redeem any of its listed securities during the nine months ending September 30, 2022[53]. - There are no stock option plans in place for the group[54]. - No significant contracts were identified that would impact the group's business as of September 30, 2022[56]. - The report will be available on the Hong Kong Stock Exchange website for at least seven days from the publication date[62]. - The report will also be published on the company's website[62].

Financial Performance - The audited total revenue for the year 2021 was RMB 3,316.85 million, a decrease of RMB 0.15 million compared to the unaudited figure[10]. - The audited net profit for the year 2021 was a loss of RMB 40,456.36 million, which is a decrease of RMB 23,950.36 million from the unaudited net profit[10]. - The audited total assets decreased by RMB 23,870 million compared to the unaudited total assets, resulting in a net liability of RMB 114,420 million[4]. - The audited inventory decreased by RMB 4,945 million, including a provision for inventory write-down of RMB 4,000 million[5]. - The audited trade receivables decreased by RMB 6,271 million, with an increase in impairment provision of RMB 4,440 million[5]. - The audited administrative and other operating expenses increased by RMB 24,335.35 million, primarily due to inventory write-down provisions[11]. - The audited total liabilities increased by RMB 8,505 million compared to the unaudited total liabilities[4]. - The audited other income increased by RMB 35.36 million, mainly from rental income of RMB 23 million and government grants of RMB 12 million[11]. Impairment Provisions - The company recognized fixed asset impairment provisions amounting to RMB 5,210,000[16]. - The company recognized accounts receivable impairment provisions amounting to RMB 4,440,000[16]. - The company recognized other receivables impairment provisions amounting to RMB 5,000,000[16]. - The company recognized potential litigation costs amounting to RMB 5,120,000[16]. - The company recognized audit fee provisions amounting to RMB 528,000[16]. Trading Status - The company’s shares have been suspended from trading since June 13, 2022, until further notice[15].

Financial Performance - For the six months ended June 30, 2022, the company reported revenue of RMB 4,748,000, a decrease of 20.1% compared to RMB 5,947,000 for the same period in 2021[3] - The gross profit for the six months ended June 30, 2022, was a loss of RMB 604,000, compared to a profit of RMB 906,000 in the same period of 2021, indicating a significant decline in profitability[3] - The company incurred a loss before tax of RMB 10,128,000 for the six months ended June 30, 2022, compared to a loss of RMB 9,854,000 for the same period in 2021, reflecting a 2.8% increase in losses year-over-year[3] - The basic and diluted loss per share for the six months ended June 30, 2022, was RMB 0.033, slightly higher than RMB 0.032 for the same period in 2021[5] - The group reported a revenue of RMB (4,748,000) for the six months ended June 30, 2022, compared to RMB 5,947,000 for the same period in 2021, reflecting a decline in sales[22] - The main product, fiber optic image intensifiers, generated a revenue of RMB (2,749,000), accounting for 58% of total revenue in the first half of 2022, down from 59% in the same period of 2021[30] - Revenue from external customers in China decreased to RMB (8,460) thousand in the first half of 2022, compared to RMB 4,630 thousand in the same period of 2021, representing a decline of approximately 282.5%[33] - Basic loss per share was approximately RMB 10,128 thousand for the first half of 2022, compared to RMB 9,854 thousand in the same period of 2021, indicating an increase in loss[40] Cash Flow and Financial Position - Cash and cash equivalents increased to RMB 974,000 as of June 30, 2022, from RMB 399,000 at the beginning of the period, showing a positive cash flow trend[13] - The company's total liabilities as of June 30, 2022, were RMB 258,167,000, an increase from RMB 240,776,000 as of December 31, 2021, indicating rising financial obligations[7] - The company reported a net cash outflow from financing activities of RMB 44,000 for the six months ended June 30, 2022, compared to an outflow of RMB 3,396,000 in the same period of 2021, indicating reduced financing needs[13] - The company's total assets less current liabilities amounted to a negative RMB 103,524,000 as of June 30, 2022, compared to a negative RMB 92,271,000 at the end of 2021, reflecting worsening financial health[7] - As of June 30, 2022, the company's total assets increased by approximately RMB 6,138,000 to about RMB 154,643,000, representing a 4% increase compared to the previous fiscal period[66] - The company's total liabilities increased by approximately RMB 16,266,000 to about RMB 279,191,000, reflecting a 6% increase compared to the previous fiscal period[66] - The company's equity decreased by approximately RMB 10,128,000 to about negative RMB 124,548,000 as of June 30, 2022[66] - The company's debt-to-asset ratio was approximately 181% as of June 30, 2022, compared to 177% on December 31, 2021[67] Inventory and Receivables - Inventory levels rose significantly to RMB 20,417,000 as of June 30, 2022, compared to RMB 10,455,000 at the end of 2021, suggesting potential overstocking issues[7] - Trade receivables decreased to RMB 16,931 thousand as of June 30, 2022, down from RMB 19,987 thousand at the end of 2021, a decline of approximately 15.4%[44] Operational Measures and Strategies - The group has taken measures to improve liquidity, including negotiating debt restructuring and seeking financial support from shareholders and lenders[16] - The company plans to improve its financial situation by issuing new shares or bonds to attract strategic investors and negotiating debt restructuring with shareholders and lenders[54] - The company aims to enhance operational efficiency by leasing out underutilized properties and developing new products to extend its market reach[54] Shareholder and Governance Information - Major shareholders included Zhang Shaohui with a 41.34% stake and Beijing Zhongze Venture Capital Management Co., Ltd. also holding 41.34%[79] - The board of directors consists of nine members, including four executive directors and three independent non-executive directors[96] - The Audit Committee has been established to review and supervise the financial reporting system, risk management, and internal control systems[90] - The company has complied with the corporate governance code as per GEM listing rules, with some exceptions noted[93] Compliance and Reporting - The group has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2022, with no significant impact on the financial statements[19] - The group’s financial statements are prepared in accordance with Hong Kong Accounting Standards and GEM Listing Rules, ensuring compliance with applicable disclosure requirements[18] - A standard code of conduct for securities trading has been adopted, with no known violations reported during the six-month period ending June 30, 2022[94]

Business Overview - The Group's principal business involves the design, research, development, manufacture, and sale of image transmission fiber optic products, with over 10 million optical fibers in a typical product[26]. - The Group produces five main products: fiber optic inverters, fiber optic straight plates, fiber optic face plates, fiber optic tapers, and microchannel plates[27]. - Fiber-optic imaging devices are increasingly used in medical imaging, digital photography, and civilian applications, but primarily serve military low-light night vision devices[27]. Management and Corporate Governance - The management team underwent changes in the first quarter of 2021, with Ms. Fong Yip Ha Angela appointed as company secretary and authorized representative[28]. - The Board and management team are committed to improving operations, production, research & development, and market development capabilities[21]. - The company expresses gratitude to employees for their contributions and to shareholders for their support[24]. - The management plans to implement financial and operational measures to ensure rapid recovery of the Group's operations[96]. - The management is preparing fundraising plans, including equity financing and debt restructuring[96]. - The re-election of the Board of Directors has been postponed due to the ongoing pandemic response, ensuring continuity in governance[172]. - The terms of office for the current Board and Supervisory Committee members will be extended until the re-election process is completed[172]. Financial Performance - The Company aims to enhance corporate value and financial performance despite ongoing impacts from the COVID-19 pandemic[21]. - For the year ended 31 December 2021, the Group's sales were approximately RMB 18,417,000, representing an increase of approximately 128.5% compared to RMB 8,061,000 in 2020[49]. - The Group's cost of sales for the year ended 31 December 2021 was approximately RMB 15,100,000, reflecting an increase of approximately 73.1% from RMB 8,723,000 in the previous year[50]. - The gross profit margin for the Group improved to 18.01% in 2021, compared to -8.21% in 2020, due to the stabilization of the COVID-19 epidemic[54]. - The Group recorded other income, gains, and losses of approximately RMB 2,854,000 in 2021, a decrease of approximately RMB 1,168,000 from RMB 4,022,000 in 2020[55]. - Administrative and other operating expenses decreased to approximately RMB 17,430,000 in 2021, down from RMB 19,464,000 in 2020, representing a reduction of approximately RMB 2,034,000[56]. - Finance costs for the Group were approximately RMB 8,406,000 in 2021, a decrease of approximately RMB 690,000 from RMB 9,096,000 in 2020[57]. - The Group reported a loss after tax of approximately RMB 40,457,000 for the year ended 31 December 2021, compared to a loss of RMB 27,917,000 in 2020[57]. Financial Position - As of December 31, 2021, the company reported net current liabilities of approximately RMB216,141,000 and net liabilities of RMB114,420,000, indicating significant uncertainty about its ability to continue as a going concern[36]. - As of December 31, 2021, the total assets of the Group decreased by approximately RMB 25,247,000 to approximately RMB 148,505,000, representing a decrease of approximately 14.53% compared to the previous financial period[71]. - As of December 31, 2021, the total liabilities of the Group increased by approximately RMB 15,206,000 to approximately RMB 262,925,000, representing an increase of approximately 6.14% compared to the previous financial period[72]. - As of December 31, 2021, the total equity of the Group decreased by approximately RMB 40,453,000 to approximately negative RMB 114,420,000, compared to approximately negative RMB 73,967,000 at the end of the previous financial period[73]. - As of December 31, 2021, the gearing ratio of the Group was approximately 195%, up from 152% in 2020[74]. Operational Challenges - The company has faced significant operational impacts due to the COVID-19 pandemic, which the new management team is working to mitigate[31]. - The Group's operations are designed to respond timely to challenges and achieve significant development[21]. Strategic Initiatives - The new management team is focused on improving the image transmission fiber optic production process and technology, while actively exploring civilian customers to expand market share and sales channels[29]. - The company aims to leverage its technological advantages in military products to expand into civilian markets and increase new customer sources[40]. - The company has a strategic focus on expanding its product offerings and enhancing technological capabilities through ongoing research and development initiatives[110]. - The company aims to strengthen its market position through strategic acquisitions and partnerships in the optics and electronics sectors[110]. Shareholder Information - As of December 31, 2021, the Group had approximately 380 full-time employees[88]. - The Company did not recommend the payment of a final dividend, consistent with the previous year where no dividend was paid[140][147]. - As of December 31, 2021, the company's reserves available for dividend distribution to shareholders amounted to RMB 0, unchanged from 2020[150]. Customer and Supplier Concentration - The Group's largest customer accounted for approximately 21% of total turnover in 2021, down from 51% in 2020, while the five largest customers accounted for 77%, down from 92%[156]. - The Group's largest supplier accounted for approximately 43% of total purchases in 2021, down from 89% in 2020, with the five largest suppliers accounting for 96%, unchanged from 2020[156]. Employee Benefits - Employer's pension scheme contributions for the year ended December 31, 2021, were approximately RMB 5,544,000, an increase from RMB 2,791,000 in 2020[155].

Financial Performance - The company reported a revenue of RMB (7,383) thousand for the three months ended March 31, 2022, compared to RMB 5,405 thousand in the same period of 2021, indicating a decline[5]. - The cost of sales increased to RMB 5,405 thousand in Q1 2022 from RMB 2,779 thousand in Q1 2021, resulting in a gross loss of RMB (1,978) thousand[5]. - The company incurred a total loss of RMB (7,122) thousand for the three months ended March 31, 2022, compared to a loss of RMB (4,821) thousand in the same period of 2021, reflecting a year-over-year increase of 47.8%[5]. - Basic and diluted loss per share was RMB (0.023) for Q1 2022, compared to RMB (0.016) for Q1 2021[16]. - The total comprehensive loss for the period ended March 31, 2022, was RMB 7,122,000, increasing the cumulative losses to RMB 159,830,000[20]. - The group reported a post-tax loss of approximately RMB 7,122,000 for the three months ended March 31, 2022, compared to a loss of RMB 4,821,000 for the same period in 2021, indicating an increase in loss of about 47.8%[32]. Current Liabilities and Financial Stability - The net current liabilities as of March 31, 2022, were approximately RMB 202,754,000, indicating significant uncertainty regarding the company's ability to continue as a going concern[7]. - The net current liabilities and net liabilities as of March 31, 2022, were approximately RMB 202,754,000 and RMB 97,595,000, respectively, indicating significant uncertainty regarding the company's ability to continue as a going concern[21]. - The group had outstanding other borrowings of approximately RMB 80,427,000 as of March 31, 2022[36]. - The group received financial assistance from related parties, with amounts payable to Taiyuan Changcheng of approximately RMB 22,761,000 and to Beijing Zhongze of approximately RMB 706,000 as of March 31, 2022[33]. - The group has a significant reliance on financial support from major shareholders, indicating potential risks in financial stability[33]. Sales and Revenue Sources - As of March 31, 2022, the total sales amount was approximately RMB 7,383,000, a decrease of about RMB 10,162,000 compared to the same period last year[28]. - The sales breakdown for the three months ended March 31, 2022, included RMB 3,633,000 (71%) from fiber optic image converters, while total sales amounted to RMB 5,179,000[30]. - The company experienced a significant decline in sales and financial performance due to the ongoing impact of the COVID-19 pandemic, but has seen some recovery as restrictions have eased[27]. Cost Management - The cost of sales for the three months ended March 31, 2022, was approximately RMB 5,405,000, a decrease of about RMB 7,914,000 compared to the same period last year[30]. - Administrative and other operating expenses for the three months ended March 31, 2022, were approximately RMB 3,457,000, a decrease of about RMB 239,000 compared to the same period last year[31]. - Financial expenses decreased to RMB 2,067 thousand in Q1 2022 from RMB 3,696 thousand in Q1 2021, showing a reduction of 44.1%[12]. - The group recorded a financial expense of approximately RMB 2,067,000 for the three months ended March 31, 2022, compared to RMB 2,411,000 for the same period in 2021, representing a decrease of about 14.2%[32]. Strategic Plans and Measures - The company has implemented measures to improve its liquidity, including debt restructuring and seeking financial support from shareholders and lenders[7]. - The company plans to issue new shares or bonds to attract strategic investors and negotiate debt restructuring with shareholders and lenders[23]. - The company aims to leverage its technological advantages in military products to expand into civilian product markets, increasing new customer and revenue sources[23]. - The company plans to activate long-term assets by leasing out properties that are currently not in use to generate additional income[23]. Corporate Governance and Compliance - The company has complied with the corporate governance code as per GEM listing rules, except for the lack of insurance arrangements for directors facing legal actions due to budget constraints[52]. - The audit committee, consisting of two independent non-executive directors and one non-executive director, has reviewed the unaudited results for the three months ended March 31, 2022[55]. Other Financial Information - The company did not declare any dividends for the three months ended March 31, 2022, consistent with the previous year[17]. - The company reported no income tax expenses for the three months ended March 31, 2022, as it did not generate taxable profits in Hong Kong[15]. - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2022, with no significant impact on its financial statements[10]. - As of March 31, 2022, the group had outstanding bank borrowings of RMB 10,650,000, secured by properties and production facilities located in Shanxi, China[35]. - As of March 31, 2022, the group had pledged assets with a book value of approximately RMB 43,955,000 as collateral for bank borrowings[38]. - The major shareholder Zhang Shaohui holds approximately 41.34% of the company's domestic shares, equivalent to 82,200,000 shares[43]. - The company has reported a total of RMB 593,000 in receivables from a related party, which has been fully impaired as of March 31, 2022[37]. - As of March 31, 2022, the company did not purchase, sell, or redeem any of its listed securities during the three-month period[47]. - The company has no share option scheme in place as of March 31, 2022[48]. - There were no significant contracts entered into by the company or its subsidiaries that would be considered significant to the group's business as of March 31, 2022[50].

Financial Performance - The company reported revenue of RMB 5,947,000 for the six months ended June 30, 2021, a decrease of 0.4% compared to RMB 5,947,000 in the same period of 2020[6]. - Gross profit for the six months ended June 30, 2021, was RMB 906,000, down from RMB 1,684,000 in the same period of 2020, representing a decline of 46.0%[6]. - The company incurred a loss before tax of RMB 9,854,000 for the six months ended June 30, 2021, compared to a loss of RMB 11,151,000 in the same period of 2020, reflecting a 11.6% improvement[6]. - Total comprehensive loss for the six months ended June 30, 2021, was RMB 9,854,000, compared to RMB 11,151,000 for the same period in 2020, indicating a reduction of 11.6%[7]. - The company reported a basic and diluted loss per share of RMB (0.032) for the six months ended June 30, 2021, compared to RMB (0.036) for the same period in 2020[7]. - The group recorded an after-tax loss of approximately RMB 9,854,000 for the six months ended June 30, 2021, an improvement from a loss of RMB 11,151,000 for the same period in 2020[66]. - The basic loss per share for the six months ended June 30, 2021, was RMB 9,854,000, an improvement from a loss of RMB 11,151,000 in 2020[42]. Assets and Liabilities - As of June 30, 2021, the company's total assets less current liabilities amounted to RMB (55,217,000), compared to RMB (40,878,000) as of December 31, 2020[9]. - The company's cash and cash equivalents decreased to RMB 604,000 as of June 30, 2021, down from RMB 4,140,000 at the end of 2020[9]. - The company's total liabilities as of June 30, 2021, were RMB 217,251,000, compared to RMB 214,630,000 as of December 31, 2020[10]. - As of June 30, 2021, the company's current liabilities net amount was approximately RMB 185,784,000, raising concerns about its ability to continue as a going concern[18]. - The company’s equity attributable to owners amounted to RMB (83,772,000) as of June 30, 2021, compared to RMB (73,967,000) at the end of 2020[10]. - As of June 30, 2021, the total assets of the group decreased by approximately RMB 11,718,000 to about RMB 162,034,000, a reduction of about 7% compared to the previous fiscal period[71]. - The total liabilities of the group decreased by approximately RMB 1,864,000 to about RMB 245,855,000, a decrease of about 1% compared to the previous fiscal period[71]. - The equity of the group decreased by approximately RMB 9,854,000 to about negative RMB 83,821,000, compared to negative RMB 73,967,000 at the end of the previous fiscal period[71]. - The debt-to-asset ratio as of June 30, 2021, was approximately 152%, up from 143% on December 31, 2020[72]. Cash Flow - The net cash flow from operating activities for the first half of 2021 was RMB 2,798,000[15]. - The net cash flow used in investing activities was RMB (14,000) compared to RMB (5,903,000) in the same period of 2020, indicating an improvement[15]. - The net cash flow used in financing activities was RMB (3,396,000), an increase from RMB (1,723,000) in 2020[15]. - The cash and cash equivalents decreased by RMB 612,000 during the first half of 2021, compared to an increase of RMB 617,000 in the same period of 2020[15]. Revenue Sources - Total revenue from fiber optic product manufacturing and sales for the first half of 2021 was RMB 5,947,000, with significant contributions from the Chinese market at RMB 4,630,000[24]. - The company reported a total of RMB 5,947,000 in customer contract revenue for the first half of 2021, with no returns recorded[24]. - The major products contributing to revenue included fiber optic image converters (RMB 3,506,000) and fiber optic plates (RMB 1,086,000)[26]. - Revenue from major customers included RMB 2,100,000 from Customer A and RMB 1,757,000 from Customer B, with Customer B's revenue increasing from RMB 805,000 in 2020[36]. Operational Challenges and Strategies - The company is actively seeking debt restructuring and financial support from shareholders and lenders to improve liquidity[18]. - The management team has been focusing on improving production processes and technology upgrades while actively expanding into civilian markets[55]. - The group plans to enhance its financial situation through measures such as issuing new shares or bonds to attract strategic investors and negotiating debt restructuring[56]. - The group aims to leverage its technological advantages in military products to expand into civilian product markets, increasing new customer acquisition and revenue sources[60]. - The group has experienced a significant decline in sales and financial performance due to the COVID-19 pandemic, but there has been a year-on-year increase in sales as the situation improves[62]. Other Financial Information - The company reported other income from government subsidies amounting to approximately RMB 1,125,000[38]. - Financial expenses for the six months ended June 30, 2021, totaled RMB 4,555,000, compared to RMB 4,558,000 for the same period in 2020[39]. - Other income, gains, and losses for the six months ended June 30, 2021, amounted to approximately RMB 1,684,000, an increase of about RMB 69,000 compared to the previous fiscal period[65]. - The company did not recommend any interim dividend for the six months ended June 30, 2021, and 2020[43]. Corporate Governance - The company has established an audit committee to review and supervise its financial reporting system, risk management, and internal control systems[95]. - The company has complied with the corporate governance code as per GEM listing rules, with some exceptions noted[98]. - The board of directors consists of nine members, including four executive directors and three independent non-executive directors[101].

Financial Performance - For the three months ended March 31, 2021, the company reported revenue of RMB 2,779,000, compared to RMB 26,000 for the same period in 2020, representing a significant increase[3]. - The cost of sales for the same period was RMB 2,509,000, resulting in a gross profit of RMB 270,000, compared to a gross loss of RMB 1,041,000 in the previous year[3]. - The company incurred a loss before tax of RMB 4,821,000 for the three months ended March 31, 2021, compared to a loss of RMB 3,654,000 for the same period in 2020[3]. - Basic and diluted loss per share for the first quarter of 2021 was RMB 0.016, compared to RMB 0.012 for the same period in 2020[14]. - The company recorded a net loss of approximately RMB 4,821,000 for the three months ended March 31, 2021, compared to a net loss of RMB 3,654,000 in the same period of 2020[29]. Liquidity and Going Concern - As of March 31, 2021, the company's net current liabilities were approximately RMB 178,684,000, indicating significant uncertainty regarding its ability to continue as a going concern[5]. - The company has taken measures to improve its liquidity, including negotiating debt restructuring and seeking financial support from shareholders and lenders[5]. - The financial statements were prepared based on the going concern basis, assuming successful implementation of liquidity improvement measures[5]. - As of March 31, 2021, the company's current liabilities and net liabilities were approximately RMB 178,684,000 and RMB 78,788,000, respectively, indicating significant uncertainty regarding the company's ability to continue as a going concern[19]. Operational Efficiency and Strategy - The company aims to enhance its operational efficiency by leasing out underutilized properties to generate additional income and developing new products to extend its market reach[21]. - The company is focusing on expanding into civilian product markets, leveraging its technological advantages accumulated in the military sector[21]. - The company has been affected by the COVID-19 pandemic, which has led to a significant decline in sales and financial performance in the previous fiscal year, but is now seeing a recovery as restrictions are eased[25]. Shareholder Information - Major shareholders included Zhang Shaohui with a 41.34% stake and Beijing Zhongze with an equal stake, both holding 82,200,000 shares[41]. - The group had a total of 80,160,000 shares (40.31%) held by Taiyuan Great Wall, indicating significant ownership concentration[41]. - As of March 31, 2021, the group had a total of 34,000,000 shares (17.10%) held by Beijing Yuankang Technology Co., Ltd.[41]. Financial Obligations and Assistance - As of March 31, 2021, the group had outstanding bank borrowings of RMB 10,900,000, secured by properties and production facilities located at No. 7, Electronic Street, Shanxi Demonstration Zone, China[32]. - The group had outstanding other borrowings amounting to approximately RMB 73,417,000 as of March 31, 2021[33]. - Financial assistance received from related parties included RMB 18,908,000 owed to Taiyuan Great Wall and RMB 688,000 owed to Beijing Zhongze as of March 31, 2021[31]. - Total interest accrued from related parties as of March 31, 2021, was approximately RMB 133,000, with RMB 122,000 from Taiyuan Great Wall, RMB 5,000 from Beijing Zhongze, and RMB 6,000 from other related parties[31]. - As of March 31, 2021, the group had pledged assets with a book value of approximately RMB 45,307,000 as collateral for bank borrowings[36]. - The group recognized a full impairment of RMB 593,000 for receivables from Taiyuan Tanghai Automatic Control Co., Ltd. as of March 31, 2021[35]. Other Financial Information - The company reported financial expenses of RMB 2,411,000 for the first quarter of 2021, a decrease from RMB 3,467,000 in the same period of 2020[10]. - The company did not recognize any tax provision for the period as it did not generate any taxable profits in Hong Kong[13]. - The company recorded administrative and other operating expenses of approximately RMB 3,696,000 for the three months ended March 31, 2021, an increase of approximately RMB 229,000 compared to RMB 3,467,000 in the same period of 2020[29]. - The company did not recommend the payment of any dividends for the three months ended March 31, 2021, consistent with the previous year[15]. - As of March 31, 2021, the company did not purchase, sell, or redeem any of its listed securities during the three-month period[45]. - The company has no share option scheme in place as of the reporting date[46]. - The audit committee, consisting of two independent non-executive directors and one non-executive director, has reviewed the unaudited results for the three months ended March 31, 2021[51].

Company Overview - The Group has been engaged in the design, research, development, manufacture, and sale of image transmission fiber optic products since its listing on GEM in 2004[23]. - A typical image transmission fiber optic product consists of over 10 million optical fibers, allowing for effective image transmission[23]. - The Group produces five main products: fiber optic inverters, fiber optic straight plates, fiber optic face plates, fiber optic tapers, and microchannel plates[24]. - The Group's fiber optic imaging devices are primarily used in military low-light night vision devices, with customers mainly located in China, Russia, and other Asian countries[24]. Management and Operations - The management team is focused on improving operations, production, research & development, and market development capabilities to enhance corporate value and financial performance[18]. - The new management team is focused on improving production processes and expanding market share, particularly in civilian applications, following the impact of the pandemic[30]. - The management team has undergone changes since Q1 2020, with key appointments including Mr. Zhao Taibing as general manager and Mr. Wu Bo as chairman of the board[25]. - The management plans to strengthen financial and operational measures to ensure rapid recovery of the Group's operations[92]. - The Group aims to leverage its technological advantages in military products to expand into civilian markets and increase new customer sources[37]. Financial Performance - For the year ended December 31, 2020, the Group's sales were approximately RMB 8,061,000, representing a decrease of approximately 79.65% compared to RMB 39,609,000 in 2019[46]. - The Group's cost of sales for the year ended December 31, 2020, was approximately RMB 8,723,000, a decrease of approximately 59.49% from RMB 21,533,000 in the previous year[47]. - The gross profit margin for the year ended December 31, 2020, was -8.21%, a significant decline from 45.64% in 2019, primarily due to the impact of COVID-19[50]. - The Group recorded other income, gains, and losses of approximately RMB 4,022,000 for the year ended December 31, 2020, down from RMB 8,188,000 in 2019, reflecting a decrease of approximately RMB 4,166,000[51]. - Administrative and other operating expenses for the year ended December 31, 2020, were approximately RMB 21,585,000, a decrease of approximately RMB 2,739,000 compared to RMB 24,324,000 in 2019[52]. - Finance costs for the year ended December 31, 2020, were approximately RMB 9,096,000, a slight decrease of approximately RMB 93,000 from RMB 9,189,000 in the previous year[53]. - The Group reported a loss after tax of approximately RMB 27,917,000 for the year ended December 31, 2020, compared to a loss of RMB 8,134,000 in 2019[53]. Financial Position - As of December 31, 2020, the Group had net current liabilities of approximately RMB175,151,000 and net liabilities of approximately RMB73,967,000, indicating significant uncertainty about the Group's ability to continue as a going concern[33]. - The Group had outstanding bank borrowings amounting to RMB 10,900,000, reduced from RMB 13,000,000 in 2019[60]. - The total assets of the Group increased by approximately RMB 11,718,000 to approximately RMB 173,752,000, representing an increase of approximately 7.23% compared to the previous financial period[67]. - The total liabilities of the Group increased by approximately RMB 39,635,000 to approximately RMB 247,719,000, representing an increase of approximately 19.05% compared to the previous financial period[68]. - The total equity of the Group decreased by approximately RMB 27,917,000 to approximately negative RMB 73,967,000, compared to approximately negative RMB 46,050,000 at the end of the previous financial period[69]. - The gearing ratio of the Group was approximately 152% as of December 31, 2020, compared to 135% in 2019[70]. - The Group had outstanding other borrowings of approximately RMB 79,187,000 as of December 31, 2020, an increase from RMB 65,177,000 in 2019[63]. Government Support and Financial Assistance - The Group received a subsidy of RMB20,000,000 from the Taiyuan City government to support its industrial transformation and technology upgrade project[32]. - Financial assistance from Taiyuan Changcheng amounted to approximately RMB 18,911,000 as of December 31, 2020, with additional assistance from Beijing Gensir and connected persons totaling RMB 684,000 and RMB 658,000 respectively[58]. - The total interest charged by Taiyuan Changcheng, Beijing Gensir, and connected persons was approximately RMB 294,000, RMB 19,000, and RMB 24,000 respectively for the year ended December 31, 2020[59]. Shareholder and Governance Information - The Company expresses gratitude to employees for their contributions and to shareholders and investors for their support[19]. - The Board of Directors collectively and individually accepts full responsibility for the accuracy and completeness of the report[4]. - The Company did not recommend the payment of a final dividend for the year ended December 31, 2020[138]. - The Company had reserves available for dividend distribution amounting to RMBNil as of December 31, 2020[141]. - The directors of the Company are appointed for a term of three years, with re-election postponed due to the epidemic response[170]. - The supervisors of the Company are also appointed for a term of three years, with their re-election similarly postponed[171]. - The Company’s governance structure remains intact, with all members of the fourth session of the Board continuing to perform their duties until re-elections are completed[170]. - The Company is committed to maintaining continuity in its governance despite the challenges posed by the epidemic[170]. - The Company’s annual report includes biographical details of directors, supervisors, and senior management, ensuring transparency in leadership[172]. Customer and Supplier Concentration - The Group's largest customer accounted for approximately 51% of total turnover in 2020, up from 24% in 2019[154]. - The five largest customers accounted for approximately 92% of total turnover in 2020, compared to 78% in 2019[154]. - The Group's largest supplier accounted for approximately 89% of total purchases in 2020, an increase from 40% in 2019[154]. - The five largest suppliers accounted for approximately 96% of total purchases in 2020, up from 62% in 2019[154].

Financial Performance - For the three months ended September 30, 2020, the company reported a revenue of RMB 6,808,000, a decrease of 61.2% compared to RMB 11,113,000 in the same period of 2019[6] - The gross loss for the three months ended September 30, 2020, was RMB 5,306,000, compared to a gross profit of RMB 5,094,000 in the same period of 2019[6] - The company incurred a loss before tax of RMB 8,519,000 for the three months ended September 30, 2020, compared to a profit before tax of RMB 47,000 in the same period of 2019[6] - For the nine months ended September 30, 2020, the total revenue was RMB 35,865,000, down from RMB 10,466,000 in the same period of 2019[6] - The net loss attributable to owners of the company for the nine months ended September 30, 2020, was RMB 19,669,000, compared to a profit of RMB 652,000 in the same period of 2019[6] - The company’s basic and diluted loss per share for the three months ended September 30, 2020, was RMB 0.028, compared to earnings per share of RMB 0.0002 in the same period of 2019[6] - For the nine months ended September 30, 2020, the company reported a loss attributable to owners of approximately RMB 19,669,000, compared to a profit of RMB 652,000 for the same period in 2019[18] - Total sales to external customers for the nine months ended September 30, 2020, amounted to RMB 6,731,000, a significant decrease from RMB 35,865,000 in the same period of 2019[25] - The company experienced substantial product returns totaling RMB 17,197,000, primarily due to quality issues and the impact of the COVID-19 pandemic on customer operations[25] - The company recorded a revenue of approximately negative RMB 10,466,000 for the nine months ended September 30, 2020, a decrease of about 129.18% compared to RMB 35,865,000 for the same period in 2019[34] - The cost of sales for the nine months ended September 30, 2020, was approximately negative RMB 3,613,000, a decrease of about 117.41% compared to RMB 20,752,000 for the same period in 2019[36] - The company reported a gross loss of RMB 6,853,000 for the nine months ended September 30, 2020, compared to a gross profit of RMB 15,113,000 for the same period in 2019[36] - Administrative and other operating expenses amounted to approximately RMB 8,145,000 for the nine months ended September 30, 2020, a decrease of about RMB 4,988,000 compared to RMB 13,133,000 for the same period in 2019[39] - The company incurred a net loss of approximately RMB 19,669,000 for the nine months ended September 30, 2020, compared to a net profit of RMB 652,000 for the same period in 2019[39] Liquidity and Financial Position - The company reported a current liabilities net amount of approximately RMB 77,519,000 as of September 30, 2020, indicating significant liquidity concerns[8] - The company plans to improve its liquidity by issuing new shares or bonds and engaging with strategic investors[8] - As of September 30, 2020, the company's net current liabilities and net liabilities were RMB 77,519,000 and RMB 65,720,000, respectively, indicating significant uncertainty regarding the company's ability to continue as a going concern[28] - The company’s total reserves as of September 30, 2020, included accumulated losses of RMB 127,960,000, reflecting ongoing financial challenges[21] - The company has received financial support from major shareholders, with outstanding loans of approximately RMB 18,973,000 owed to Taiyuan Changcheng and RMB 1,157,000 owed to Beijing Zhongze as of September 30, 2020[40] - The company is facing challenges in securing funding due to tightened bank lending, affecting the drawdown dates for shareholder loans[32] - As of September 30, 2020, the company had pledged assets with a book value of approximately RMB 45,944,000 for bank borrowings[44] - The company reported a decrease in the book value of pledged machinery from RMB 723,000 as of December 31, 2019, to RMB 539,000 as of September 30, 2020[44] Strategic Plans and Operations - The company aims to revitalize its assets and develop new products while expanding into new markets and sectors[8] - The company plans to lease out underutilized properties to increase property income and strengthen existing sales forces[30] - The company aims to expand into the civilian product market leveraging its technological advantages accumulated in the military sector[30] - The company plans to continue focusing on technological upgrades and expanding its civilian customer base despite the challenges posed by the pandemic[27] - The management team has undergone changes, with new appointments aimed at improving production processes and expanding market reach, although operations have been significantly impacted by the pandemic[27] - The company is actively seeking to resell returned products in the civilian market to realize additional revenue[37] Shareholder Structure - Major shareholder Zhang Shaohui holds 82,200,000 shares, representing 41.34% of the company's total equity[51] - Beijing Zhongze holds 82,200,000 shares, also representing 41.34% of the company's total equity[51] - Taiyuan Changcheng Optoelectronics holds 80,160,000 shares, accounting for 40.31% of the company's total equity[51] - Beijing Yuankang Technology holds 34,000,000 shares, which is 17.10% of the company's total equity[51] - The company has a total of 57,300,000 shares registered under Beijing Zhongze, with Zhang Shaohui deemed to have control over these shares[55] - The company has a total of 24,900,000 shares registered under Taiyuan Tanghai, with Liu Jiang deemed to have control over these shares[56] - As of September 30, 2020, the company had no other known interests or positions held by directors or supervisors in the company's shares[57] - The company’s total equity structure includes various major shareholders with significant percentages, indicating a concentrated ownership[51] Corporate Governance - The board of directors is composed of nine members, including four executive directors and three independent non-executive directors[66] - An audit committee has been established to review and supervise the financial reporting system, risk management, and internal control systems of the group[64] - The audit committee consists of two independent non-executive directors and one non-executive director, with Mr. Xu Yongfeng serving as the chairman[64] - The board believes there were no significant contracts entered into by the company or its subsidiaries that would constitute a major interest for the group as of September 30, 2020[61] - The board believes that directors, supervisors, and management shareholders had no interests in any business that may compete with the group as of September 30, 2020[62] Dividends and Share Transactions - The company did not recommend any dividend payments for the nine months ended September 30, 2020, and 2019[20] - No share buybacks, sales, or redemptions occurred by the company or its subsidiaries during the nine months ended September 30, 2020[58] - The company does not have any share option plans in place[59] - No rights to purchase H-shares were granted to directors or supervisors during the nine months ended September 30, 2020[60]

Financial Performance - For the six months ended June 30, 2020, the company reported a revenue of RMB 24,752,000, a decrease of 18.5% compared to RMB 30,305,000 for the same period in 2019[6] - The gross loss for the six months ended June 30, 2020, was RMB 1,547,000, compared to a gross profit of RMB 10,019,000 in the same period of 2019, indicating a significant decline[6] - The company incurred a net loss of RMB 11,151,000 for the six months ended June 30, 2020, compared to a profit of RMB 606,000 for the same period in 2019[8] - The company reported a basic and diluted loss per share of RMB 0.036 for the six months ended June 30, 2020, compared to earnings of RMB 0.002 for the same period in 2019[8] - The company has recognized a total comprehensive loss of RMB 11,151,000 for the six months ended June 30, 2020, reflecting ongoing challenges in the market[13] - The company reported a loss attributable to owners of RMB 11,151,000 for the six months ended June 30, 2020, compared to a profit of RMB 600,000 in the same period of 2019[43] - The group reported a post-tax loss of approximately RMB 11,151,000 for the six months ended June 30, 2020, compared to a profit of approximately RMB 605,000 for the same period in 2019[68] Assets and Liabilities - Total assets as of June 30, 2020, were RMB 158,888,000, a slight decrease from RMB 162,055,000 as of December 31, 2019[10] - The company's current liabilities increased to RMB 115,465,000 as of June 30, 2020, compared to RMB 109,272,000 at the end of 2019[10] - Non-current assets decreased to RMB 116,730,000 as of June 30, 2020, from RMB 118,183,000 as of December 31, 2019[10] - The company's total equity attributable to owners decreased to RMB (57,158,000) as of June 30, 2020, from RMB (46,007,000) at the end of 2019[11] - As of June 30, 2020, the company had a net current liability of approximately RMB 73,307 thousand and total borrowings of RMB 29,959 thousand due within the next twelve months, raising concerns about the company's ability to continue as a going concern[18] - The total liabilities of the group increased by approximately RMB 8,005,000 to about RMB 216,089,000, an increase of about 4% compared to the end of the previous fiscal period[72] - The debt-to-asset ratio as of June 30, 2020, was approximately 136%, up from 128% on December 31, 2019[73] Cash Flow - For the six months ended June 30, 2020, the net cash flow from operating activities was RMB (5,903) thousand, compared to RMB (6,971) thousand for the same period in 2019, indicating a slight improvement[15] - The net cash flow used in investing activities decreased significantly to RMB (1,723) thousand from RMB (16,875) thousand year-on-year, reflecting a reduction in investment expenditures[15] - The net cash flow from financing activities was RMB 8,243 thousand, down from RMB 13,292 thousand in the previous year, showing a decrease in financing activities[15] - The company reported a total cash and cash equivalents balance of RMB 761 thousand as of June 30, 2020, down from RMB 10,195 thousand at the beginning of the year[15] Revenue Breakdown - Revenue from fiber optic product manufacturing and sales for the six months ended June 30, 2020, was RMB (3,703) thousand, a significant decline from RMB 24,752 thousand in the same period of 2019[25] - The revenue from customer contracts was RMB (3,658) thousand, reflecting a substantial decrease compared to the previous year's revenue[25] - The company's revenue for the six months ended June 30, 2020, was approximately negative RMB 3,658,000, including returns of negative RMB 5,851,000, representing a decrease of about 114.78% compared to the same period in 2019[63] - The cost of sales for the same period was approximately negative RMB 2,111,000, including returns of negative RMB 3,620,000, a decrease of about 114.33% compared to the previous fiscal period[63] - Revenue from external customers in China was RMB 1,597,000, down from RMB 11,754,000 in 2019, reflecting a decline of approximately 86.4%[36] - Major customers contributed significantly to revenue, with Customer A generating RMB 805,000, Customer B RMB 585,000, and Customer C RMB 554,000, all showing a decrease compared to the previous year[37] Operational Challenges - The company experienced severe operational disruptions due to the COVID-19 pandemic, leading to a significant decline in sales and financial performance in the first half of 2020[62] - The company has faced challenges with a new supplier whose product quality did not meet standards, affecting product stability and customer satisfaction[65] - The company is actively working on developing new products and expanding into new markets to enhance its operational performance[18] - The management team aims to enhance production processes and technology upgrades while actively expanding into civilian markets to increase customer base and revenue sources[57] - The company is exploring the rental of underutilized properties to generate additional income as part of its operational strategy[60] - The company is committed to leveraging its technological advantages in military products to expand into civilian product markets[60] Governance and Compliance - The company has adopted new and revised Hong Kong Financial Reporting Standards, which did not result in significant changes to its accounting policies[22] - The audit committee, consisting of two independent non-executive directors and one non-executive director, has reviewed the unaudited results for the six months ending June 30, 2020[99] - The company has complied with the corporate governance code as outlined in the GEM Listing Rules[100] - No significant contracts were identified that would impact the group's business as of June 30, 2020[97] - There were no reported instances of non-compliance with trading standards by the directors during the six-month period[102] - The board of directors consists of nine members, including four executive directors and three independent non-executive directors[104] Shareholder Information - As of June 30, 2020, Zhang Shaohui holds 82,200,000 shares, representing approximately 41.34% of the company's total equity[86] - Beijing Zhongze Venture Capital Management Co., Ltd. also holds 82,200,000 shares, equivalent to 41.34% of the company's total equity[86] - Taiyuan Changcheng Optoelectronic Co., Ltd. owns 80,160,000 shares, accounting for approximately 40.31% of the company's total equity[86] - Beijing Yuankang Technology Co., Ltd. holds 34,000,000 shares, representing about 17.10% of the company's total equity[86] - The company did not purchase, sell, or redeem any of its listed securities during the six months ending June 30, 2020[93] - There are no stock option plans in place for the group[94]