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]

Market Position and Risks - Shanxi Changcheng Microlight Equipment Co. Ltd. is positioned on the GEM market, catering to small and mid-sized companies, which may carry higher investment risks compared to those listed on the Main Board[1]. - Securities traded on GEM are generally more susceptible to high market volatility, and there is no assurance of a liquid market for these securities[2]. Corporate Governance - The directors of Shanxi Changcheng confirm that the information in the report is accurate and complete in all material respects, with no misleading or deceptive elements[4]. - The report complies with the Rules Governing the Listing of Securities on GEM, aimed at providing information about Shanxi Changcheng Microlight Equipment Co. Ltd.[4]. - The company has established various committees, including an Audit Committee and a Remuneration Committee, to enhance corporate governance[12][13]. - The report outlines the corporate governance practices and compliance measures undertaken by the company[7]. - The Company’s board of directors includes both executive and non-executive members, with changes in leadership noted during the reporting period[175][176]. - The Company’s governance structure includes independent non-executive directors, ensuring compliance with regulatory standards[176]. Financial Performance - The report includes a comprehensive financial summary over five years, providing insights into the company's financial performance[7]. - The Group's turnover for the year ended 31 December 2019 was approximately RMB39,609,000, representing an increase of approximately 50.11% compared to RMB26,386,000 in 2018[47]. - Sales of fiber optic inverters and microchannel plates increased by approximately RMB9,100,000 and RMB6,521,000 respectively during the same period[47]. - The cost of sales for the year ended 31 December 2019 was approximately RMB21,533,000, an increase of approximately 14.48% from RMB18,810,000 in 2018[48]. - The gross profit margin for the year ended 31 December 2019 was 45.64%, up from 28.71% in 2018, attributed to increased production volume and improved product passing rates[49]. - Other income, gains, and losses amounted to approximately RMB8,188,000 for the year ended 31 December 2019, an increase of approximately RMB6,882,000 compared to RMB1,306,000 in 2018[54]. - Administrative and other operating expenses decreased to approximately RMB24,324,000 in 2019 from RMB31,754,000 in 2018, a reduction of approximately RMB7,430,000[55]. - Finance costs increased to approximately RMB9,189,000 for the year ended 31 December 2019, up from RMB5,272,000 in 2018, representing an increase of approximately RMB3,917,000[56]. - The loss after tax for the year ended 31 December 2019 was approximately RMB8,134,000, a significant improvement from a loss of RMB29,241,000 in 2018[57]. Operational Changes and Initiatives - The Group has implemented operational measures since Q4 2018 to improve production processes, enhance product passing rates, and strengthen internal management, resulting in increased production volume and gross profit margin[33]. - The management team has undergone changes since Q4 2018, focusing on improving operational and production capabilities[29]. - The Company aims to enhance corporate value and financial performance through comprehensive improvements in operations, production, and market development[21]. - The company is focused on expanding its market presence and enhancing its product offerings[109]. - The company is committed to innovation and technology development in the optoelectronics sector[110]. - The company is actively pursuing strategic initiatives to enhance shareholder value[99]. Financial Assistance and Liabilities - The Group received a subsidy of RMB20,000,000 from the Taiyuan City government to support its industrial transformation and technology upgrade project[34]. - As of December 31, 2019, the Group reported net current liabilities of approximately RMB65,421,000 and net liabilities of RMB46,050,000, indicating significant uncertainty about its ability to continue as a going concern[35]. - The Company has negotiated a revised loan agreement with a substantial shareholder, extending the loan term of RMB18,185,000 to three years and delaying interest payments for 2019 and 2020 to 2021[39]. - In Q2 2019, the Company secured interest waivers for loans amounting to RMB11,200,000 and RMB5,824,000 from its substantial shareholder and another borrower, respectively[40]. - The Group obtained financial assistance from Taiyuan Changcheng, with an amount due of approximately RMB18,608,000 as of 31 December 2019[58]. - Shareholders' Loan A and Loan B were granted in the amounts of RMB60,000,000 and RMB20,000,000 respectively, aimed at funding technological transformation and replenishing working capital[45][50]. Assets and Liabilities Overview - As of December 31, 2019, the Group's total assets increased by approximately RMB 13,717,000 to approximately RMB 162,034,000, representing an increase of approximately 9.25% compared to the previous financial period[73]. - As of December 31, 2019, the Group's total liabilities increased by approximately RMB 20,874,000 to approximately RMB 208,084,000, representing an increase of approximately 11.15% compared to the previous financial period[74]. - As of December 31, 2019, the Group's total equity decreased by approximately RMB 7,157,000 to approximately negative RMB 46,050,000 compared to approximately negative RMB 38,893,000 at the end of the previous financial period[75]. - As of December 31, 2019, the Group had outstanding bank borrowings of RMB 13,000,000, which had been renewed in December 2019 for a term of three years[64]. - As of December 31, 2019, the Group had outstanding other borrowings of approximately RMB 65,177,000, including a non-current portion of approximately RMB 53,049,000[65]. - As of December 31, 2019, the gearing ratio of the Group was approximately 135%, down from 143% in 2018[76]. - As of December 31, 2019, certain assets with a carrying amount of approximately RMB 134,000 and RMB 47,137,000 were pledged to secure bank borrowings[85]. Shareholder Information - Mr. GL Yuan holds 3,645,000 H shares and his spouse holds 250,000 H shares of the Company[115]. - Mr. Wu Bo was appointed as the chairman of the board of directors on February 16, 2020[116]. - Mr. Xu Yongfeng is the chairman and a member of the audit committee, appointed on March 26, 2019[121]. - Ms. Han Xiaoou has been a supervisor since May 27, 2011 and is currently the chairman of the labor union[129]. - Mr. Dong Yonghong has been the project manager of the research and development centre since February 2006[130]. - Mr. Fan Jiming has been the deputy general manager since 1999 and currently serves as the director of infrastructure and safety[136]. - The Group's largest customer accounted for approximately 24% of total turnover in 2019, down from 36% in 2018[161]. - The five largest customers accounted for approximately 78% of total turnover in 2019, down from 89% in 2018[161]. - The Group's largest supplier accounted for approximately 40% of total purchases in 2019, down from 48% in 2018[161]. - The five largest suppliers accounted for approximately 62% of total purchases in 2019, down from 69% in 2018[161]. Dividend and Reserves - The Company does not recommend the payment of a final dividend for the year ended December 31, 2019[143]. - The Company had reserves available for dividend distribution to shareholders amounting to RMBNil as of December 31, 2019[146]. Audit and Compliance - The auditors issued a disclaimer of opinion regarding the consolidated financial statements for the year ended December 31, 2019, and the Board plans to discuss shareholder loans totaling RMB 80,000,000 to address this issue[90]. - The Company maintains a register of substantial shareholders as required under the Securities and Futures Ordinance[195].

Financial Performance - For the first quarter of 2020, the company reported total revenue of RMB 10,272,000, a decrease from RMB 10,272,000 in the same period of 2019[6] - The cost of sales for the first quarter of 2020 was RMB 5,878,000, resulting in a gross loss of RMB 4,394,000[6] - The company incurred a total loss of RMB 3,654,000 for the first quarter of 2020, compared to a loss of RMB 1,525,000 in the same period of 2019, representing an increase of 140%[6] - Basic and diluted loss per share for the first quarter of 2020 was RMB 0.012, compared to RMB 0.005 in the same period of 2019[15] - The group recorded a net loss of approximately RMB 3,654,000 for the three months ended March 31, 2020, compared to a loss of RMB 1,525,000 for the same period in 2019[27] Expenses and Costs - Administrative and other operating expenses decreased to RMB 3,467,000 in the first quarter of 2020 from RMB 3,873,000 in the same period of 2019[6] - Financial expenses for the first quarter of 2020 were RMB 925,000, down from RMB 1,966,000 in the same period of 2019, a reduction of approximately 53%[12] - Administrative and other operating expenses for the three months ended March 31, 2020, were approximately RMB 3,467,000, a decrease of about RMB 406,000 compared to the previous year[27] Equity and Liabilities - The total equity attributable to the owners of the company decreased to RMB 42,748,000 as of March 31, 2020, from RMB 40,389,000 as of March 31, 2019[17] - As of March 31, 2020, the group's current liabilities and total liabilities were approximately RMB 52,727,000 and RMB 42,773,000, respectively, indicating significant uncertainty regarding the group's ability to continue as a going concern[20] - The group has a bank loan outstanding of RMB 13,000,000, secured by properties located in Shanxi, with a loan term starting from December 30, 2019, for three years[30] - The group has other borrowings outstanding of approximately RMB 71,943,000 as of March 31, 2020[31] Shareholder Information - Major shareholder Zhang Shaohui holds 82,200,000 shares, representing 41.34% of the company's domestic shares and 26.61% of the total equity[39] - The company has a significant concentration of ownership, with the top three shareholders holding over 80% of the domestic shares[39] Dividends and Share Transactions - The company did not declare any dividends for the first quarter of 2020, consistent with the previous year[16] - The company has no share buyback, purchase, or sale of its listed securities during the three months ending March 31, 2020[45] - The company does not have any share option schemes in place as of March 31, 2020[46] Operational Impact - The group's production facilities have been severely impacted by the COVID-19 pandemic, leading to a temporary halt in production since early 2020[23] - The group has experienced a significant decline in sales returns, with the sales return amount for fiber optic image converters exceeding the sales amount, resulting in negative sales figures for the period[25] Financial Support - The group has received financial support from major shareholders, with amounts payable to Taiyuan Changcheng and Beijing Zhongze totaling approximately RMB 18,828,000 and RMB 669,000, respectively, as of March 31, 2020[28] Taxation - The company reported no income tax expenses for the first quarter of 2020, as it did not generate taxable profits in Hong Kong[13] Governance and Compliance - The audit committee has been established to review and supervise the financial reporting system, risk management, and internal control systems of the group[52] - The company has no significant contracts that involve the board of directors or supervisors with substantial interests as of March 31, 2020[49] - There are no competitive interests held by the board of directors, supervisors, or management shareholders in businesses that may compete with the company as of March 31, 2020[50] Future Outlook - The company’s future outlook and performance guidance are not specified in the available information[37] - The company’s financial performance for the first quarter of 2020 is not detailed in the provided documents[34] - There is no mention of market expansion or mergers and acquisitions in the current financial report[37] - The company has not disclosed any new product or technology developments in the provided documents[37]

Financial Performance - For the three months ended September 30, 2019, the company reported revenue of RMB 11,113,000, a 63.5% increase compared to RMB 6,801,000 for the same period in 2018[3]. - The gross profit for the nine months ended September 30, 2019, was RMB 15,113,000, representing a 213.5% increase from RMB 4,821,000 in the same period of 2018[3]. - The net profit for the nine months ended September 30, 2019, was RMB 652,000, compared to a net loss of RMB 11,192,000 for the same period in 2018[3]. - Basic and diluted earnings per share for the nine months ended September 30, 2019, were RMB 0.002, compared to a loss per share of RMB 0.036 for the same period in 2018[14]. - The company reported a revenue of approximately RMB 35,865,000 for the nine months ended September 30, 2019, representing a 93% increase compared to RMB 18,587,000 for the same period in 2018[32]. - The gross profit margin improved to 42.14% for the nine months ended September 30, 2019, up from 25.94% in the same period of 2018, attributed to increased production and improved product quality[34]. - The company achieved a profit after tax of approximately RMB 652,000 for the nine months ended September 30, 2019, compared to a loss of RMB 11,192,000 in the same period of 2018[35]. Expenses and Costs - The company incurred finance costs of RMB 5,749,000 for the nine months ended September 30, 2019, an increase from RMB 3,470,000 in the same period of 2018[12]. - The total sales and distribution expenses for the nine months ended September 30, 2019, were RMB 729,000, compared to RMB 614,000 for the same period in 2018[3]. - The sales cost for the nine months ended September 30, 2019, was approximately RMB 20,752,000, an increase of about 51% from RMB 13,766,000 in the previous year[32]. - Administrative and other operating expenses were approximately RMB 13,133,000 for the nine months ended September 30, 2019, a slight increase from RMB 12,636,000 in the same period of 2018[35]. - Financial costs increased to approximately RMB 5,749,000 for the nine months ended September 30, 2019, from RMB 3,470,000 in the previous year, primarily due to interest from loan modifications[35]. Sales and Revenue Breakdown - For the nine months ended September 30, 2019, total sales to external customers amounted to RMB 35,865,000, a 93.1% increase from RMB 18,587,000 in the same period of 2018[19]. - The sales breakdown by product for 2019 shows that fiber optic image converters accounted for 42% of total revenue, while microchannel plates accounted for 38%, indicating a shift in product demand[19]. Financial Position and Liabilities - As of September 30, 2019, the company had net current liabilities of approximately RMB 58,209,000 and total liabilities of RMB 37,264,000, highlighting liquidity concerns[24]. - The company’s total liabilities increased, reflecting the financial costs and operational expenses incurred during the reporting period[12]. - As of September 30, 2019, the group had outstanding bank borrowings of approximately RMB 13,238,000, which were due in November 2016 and remain unpaid[38]. - The group had other borrowings of approximately RMB 64,590,000, including a non-current portion of approximately RMB 53,208,000 and a current portion of approximately RMB 11,382,000 as of September 30, 2019[38]. - The group pledged land use rights and property with a carrying value of approximately RMB 10,314,000 and RMB 31,000 to secure bank borrowings as of September 30, 2019[41]. Government Support and Financial Restructuring - The company received a government subsidy of RMB 20,000,000 on December 26, 2018, to support its industrial transformation and technology upgrade projects[22]. - The company has restructured loan agreements with major shareholders, extending repayment terms and deferring interest payments to improve financial stability[24]. - The company has engaged in debt restructuring discussions with shareholders and lenders to alleviate financial pressures and seek additional support[26]. Management and Governance - The management team has undergone changes since Q4 2018, with a focus on improving operational, production, management, R&D, and market development capabilities[21]. - The company has established an audit committee responsible for reviewing and supervising the financial reporting system, risk management, and internal control systems[58]. - The board of directors consists of nine members, including four executive directors and three independent non-executive directors[60]. - The company’s chairman is Zhao Zhi, who leads the board[59]. - The audit committee is chaired by Mr. Xu Yongfeng, an independent non-executive director[58]. Shareholding and Equity - Major shareholder Zhang Shaohui held 82,200,000 shares, representing 41.34% of the company's total equity as of September 30, 2019[46]. - The group had a total of 80,160,000 shares held by Taiyuan Changcheng, representing 40.31% of the total equity as of September 30, 2019[46]. - The company reported that 34,000,000 shares, or 17.10% of the total equity, were held by Liaoning Shuguang Industrial Group as of September 30, 2019[46]. - The company had a total of 24,900,000 shares, representing 12.52% of the total equity, held by Taiyuan Tanghai Automatic Control Co., Ltd. as of September 30, 2019[46]. Other Information - The company has not applied new accounting standards that have been issued but are not yet effective, which are not expected to have a significant impact on the financial statements[9]. - The company has not disclosed any other significant interests or shareholdings by individuals related to the company[55]. - There were no share buyback activities conducted by the company or its subsidiaries during the nine months ending September 30, 2019[52]. - The company does not have any stock option plans in place[53]. - No dividends were recommended for the nine months ended September 30, 2019, reflecting the company's focus on financial recovery[16].

Financial Performance - For the six months ended June 30, 2019, the company reported revenue of RMB 11,786,000, a decrease from RMB 24,752,000 in the same period of 2018, representing a decline of approximately 52.3%[14] - The gross profit for the same period was RMB 2,987,000, down from RMB 14,733,000 in 2018, indicating a significant drop of about 79.8%[14] - The company incurred a loss before tax of RMB 6,467,000 for the six months ended June 30, 2019, compared to a loss of RMB 2,900,000 in the same period of 2018, reflecting an increase in losses of approximately 123.6%[14] - The net loss attributable to owners of the company was RMB 6,466,000 for the six months ended June 30, 2019, compared to a loss of RMB 2,899,000 in 2018, marking an increase in losses of about 123.5%[14] - The basic and diluted loss per share for the six months ended June 30, 2019, was RMB (0.021), compared to RMB (0.009) in the same period of 2018, indicating a worsening of the loss per share by approximately 133.3%[14] - The company reported a total comprehensive loss of RMB (6,466,000) for the six months ended June 30, 2019, which includes a loss of RMB (600,000) from other comprehensive income[19] - The company reported a net cash outflow from operating activities of RMB (6,971,000) for the six months ended June 30, 2019, compared to RMB (2,606,000) for the same period in 2018, reflecting a worsening cash flow situation[21] - The company's net profit after tax for the six months ended June 30, 2019, was approximately RMB 605,000, compared to a net loss of RMB 6,467,000 for the same period in 2018[78] Financial Position - The company's current liabilities as of June 30, 2019, amounted to RMB 59,673,000, while total liabilities were RMB 37,311,000, indicating potential liquidity issues[6] - The company has outstanding bank and other borrowings of RMB 27,264,000 due within the next twelve months, raising concerns about its ability to continue as a going concern[7] - Total liabilities as of June 30, 2019, were RMB 95,158,000, compared to RMB 30,652,000 as of December 31, 2018, showing a significant increase of approximately 210.5%[17] - The total equity attributable to owners of the company was RMB (37,287,000) as of June 30, 2019, compared to RMB (38,864,000) at the end of 2018, indicating a slight improvement in equity position[19] - The company's cash and cash equivalents decreased to RMB 10,195,000 from RMB 20,749,000, a decline of approximately 50.9%[21] - As of June 30, 2019, the company's net current liabilities and net liabilities were approximately RMB 59,673,000 and RMB 37,311,000, respectively[65] - The debt-to-equity ratio as of June 30, 2019, was approximately 131%, down from 143% on December 31, 2018[86] Revenue and Sales - The company reported other income and gains of RMB 10,019,000 for the six months ended June 30, 2019, compared to RMB 605,000 in the same period of 2018, showing a substantial increase of approximately 1565.4%[14] - Revenue from external customers by region showed that China contributed RMB 11,754,000, while Hong Kong and other Asian countries contributed RMB 8,851,000, and Europe and Russia contributed RMB 4,147,000[40] - The revenue from fiber optic products manufacturing and sales accounted for 100% of total revenue, with the main products being fiber optic image converters (RMB 10,906,000, 44%) and fiber optic plates (RMB 3,679,000, 15%) for the first half of 2019[37] - The company's revenue for the six months ended June 30, 2019, was approximately RMB 24,752,000, representing an increase of about 110% compared to RMB 11,786,000 for the same period in 2018[75] - Sales of optical fiber inversion devices and microchannel plates increased by approximately RMB 7,606,000 and RMB 4,777,000, respectively[75] Operational Measures and Strategy - The company has not provided a clear outlook or guidance for future performance, indicating uncertainty in its operational strategy moving forward[6] - The new management team has initiated a comprehensive review of operations, production, and management since the fourth quarter of 2018[60] - The company plans to improve liquidity through measures such as issuing new shares and negotiating debt restructuring with creditors[24] - The company has implemented operational measures since Q4 2018, including improvements in image transmission fiber production processes, resulting in increased product qualification rates and gross margins[63] Shareholder Information - As of June 30, 2019, major shareholder Zhang Shaohui holds 82,200,000 shares, representing approximately 41.34% of the domestic shares and 26.61% of the total share capital[98] - Taiyuan Changcheng Optoelectronics Co., Ltd. holds 80,160,000 domestic shares, accounting for 40.31% of the domestic shares and 25.95% of the total share capital[98] - Liaoning Shuguang Industrial Group Co., Ltd. owns 34,000,000 domestic shares, which is 17.10% of the domestic shares and 11.01% of the total share capital[98] - The company’s major shareholders include individuals and entities with significant control over the shares, indicating a concentrated ownership structure[98] Compliance and Governance - The company has established an audit committee to review and supervise its financial reporting system, risk management, and internal control systems[111] - The company has complied with the corporate governance code as per GEM listing rules, with some exceptions regarding legal insurance arrangements for directors[112] - The company has adopted a standard code for securities trading by directors, ensuring compliance with GEM listing rules[114]

Financial Performance - Revenue for the three months ended March 31, 2019, was RMB 10,272,000, a significant increase of 161% compared to RMB 3,929,000 for the same period in 2018[3] - Gross profit for the same period was RMB 4,394,000, compared to RMB 1,236,000 in 2018, reflecting a gross margin improvement[3] - The company reported a loss before tax of RMB 1,525,000 for the three months ended March 31, 2019, compared to a loss of RMB 3,567,000 in the same period of 2018, indicating a reduction in losses[3] - Basic and diluted loss per share for the three months ended March 31, 2019, was RMB 0.005, an improvement from RMB 0.012 in 2018[11] - Total comprehensive loss attributable to owners for the three months ended March 31, 2019, was RMB 1,525,000, compared to RMB 3,567,000 in the same period of 2018[14] - The gross profit margin for the first quarter of 2019 was 42.8%, an improvement from 31.5% in the first quarter of 2018, primarily due to increased sales and market prices of high-margin microchannel plates[22] - The company's cost of sales for the first quarter of 2019 was approximately RMB 5,878,000, an increase of about 118% from RMB 2,693,000 in the same period of 2018[20] - The company recorded a net loss attributable to shareholders of approximately RMB 1,525,000 for the three months ended March 31, 2019, compared to a loss of RMB 3,567,000 for the same period in 2018[23] Expenses and Financial Costs - Administrative and other operating expenses were RMB 3,873,000 for the three months ended March 31, 2019, slightly decreased from RMB 3,893,000 in 2018[3] - Financial expenses for the three months ended March 31, 2019, totaled RMB 1,966,000, compared to RMB 1,008,000 in the same period of 2018, indicating an increase in financial costs[10] - The company reported no income tax expense for the three months ended March 31, 2019, as there were no taxable profits generated in Hong Kong[9] Shareholder and Equity Information - The total equity attributable to owners as of March 31, 2019, was RMB (40,389,000), reflecting the cumulative losses over the periods[14] - As of March 31, 2019, major shareholders included Zhang Shaohui with 82,200,000 shares (41.34%) and Beijing Zhongze with the same number of shares, both holding significant stakes in the company[41] - Taiyuan Great Wall Optoelectronics held 80,160,000 shares (40.31%) as a major shareholder as of March 31, 2019[43] - The company reported a total of RMB 593,000 receivable from a related shareholder, which was fully impaired as of March 31, 2019[33] - The group had a total of RMB 43,256,000 owed to a related company, with non-current liabilities of RMB 35,200,000 and current liabilities of RMB 8,056,000[29] Debt and Liabilities - As of March 31, 2019, the company's current liabilities and net liabilities were approximately RMB 70,310,000 and RMB 40,418,000, respectively[25] - The group had outstanding bank loans of approximately RMB 13,238,000, which were due in November 2016 and remain unpaid as of March 31, 2019[32] - As of March 31, 2019, the group had other borrowings totaling approximately RMB 58,020,000, including non-current liabilities of RMB 41,215,000 and current liabilities of RMB 16,805,000[32] - The group had pledged assets valued at approximately RMB 10,461,000 and RMB 221,000 as collateral for bank loans as of March 31, 2019[34] - The total interest accrued from related parties as of March 31, 2019, was approximately RMB 1,205,000, with Taiyuan Great Wall contributing RMB 122,000, Beijing Zhongze RMB 5,000, related persons RMB 7,000, and related companies RMB 1,011,000[30] Operational Improvements and Future Plans - The company received an industrial transformation and upgrading subsidy of RMB 20,000,000 from the Taiyuan Municipal Government to support its technology upgrade projects[17] - The company has implemented measures to improve production efficiency, including upgrading production technology and adjusting production line structures[20] - The company plans to issue new shares and negotiate debt restructuring with shareholders and lenders to improve its financial situation[26] - The company aims to enhance its operational capabilities through rigorous cost control measures and improving product quality and gross margins[28] Corporate Governance - The audit committee, consisting of two independent non-executive directors and one non-executive director, has reviewed the unaudited results for the three months ending March 31, 2019[56] - The company has no significant contracts that its directors or supervisors have a substantial interest in as of March 31, 2019[54] - There are no competitive interests held by the company's directors, supervisors, or management shareholders[55] - The board of directors consists of nine members, including four executive directors and three independent non-executive directors[60] Share Activities - The company did not recommend any dividend for the three months ended March 31, 2019, consistent with the previous year[13] - The company has no share buyback, sale, or redemption activities during the three months ending March 31, 2019[50] - There are no stock option plans in place for the group[51] - The company submitted a resumption proposal to the stock exchange on April 29, 2019, as part of its fundraising plan[58]

Financial Performance - The company reported a significant increase in revenue, achieving a total of 100 million RMB, representing a 20% growth compared to the previous year[11]. - The Group's revenue for the year ended 31 December 2018 was approximately RMB26,386,000, representing an increase of approximately 37.9% compared to the previous year[32]. - The loss after tax for the year ended 31 December 2018 was approximately RMB29,241,000, slightly higher than the loss of RMB28,576,000 in 2017[48]. - The Group incurred a loss attributable to owners of approximately RMB29,237,000 for the year ended 31 December 2018, with net current liabilities of approximately RMB110,133,000 and net liabilities of approximately RMB38,893,000[49]. - The Group's financial results for the year ended December 31, 2018, are detailed in the accompanying consolidated financial statements[135]. Operational Efficiency - The management emphasized a focus on improving operational efficiency, aiming for a 10% reduction in costs[11]. - The Group plans to implement production technology upgrades and measures to enhance production efficiency and product quality[36]. - The gross profit margin for the year ended 31 December 2018 was 28.7%, up from 19.2% in 2017, primarily due to improved production processes[40]. Market Expansion - The company is expanding its market presence in Southeast Asia, targeting a 10% market share within the next two years[11]. - The company provided a positive outlook for the next fiscal year, projecting a revenue growth of 25%[11]. - New product development includes the launch of a cutting-edge microlight equipment line, expected to contribute an additional 30 million RMB in revenue[11]. Research and Development - The company plans to invest 5 million RMB in research and development for new technologies in the upcoming year[11]. - The company is committed to innovation, as evidenced by the independent development of a miniature ECG recorder[101]. Financial Assistance and Liabilities - The Group received a subsidy of RMB20,000,000 from the Taiyuan City government to support its industrial transformation and technological upgrade project[37]. - The Group received financial assistance from Taiyuan Changcheng amounting to approximately RMB18,871,000, including interest[59]. - The total liabilities of the Group increased by approximately RMB 62,490,000 to approximately RMB 187,210,000, representing an increase of approximately 50% compared to the previous financial year[75]. Sustainability Initiatives - A commitment to sustainability initiatives was highlighted, with plans to reduce carbon emissions by 20% over the next five years[11]. Shareholder Information - The Company has not reported any reserves available for dividend distribution in the past two years[138]. - The Company did not recommend the payment of a final dividend for the year ended December 31, 2018, consistent with 2017[135]. - The interests of substantial shareholders as of December 31, 2018, are recorded in the register required under Section 336 of the SFO[189]. Management and Governance - The company has a strong management team with diverse backgrounds in finance and engineering, enhancing its operational capabilities[104]. - The board includes independent non-executive directors who contribute to governance and strategic oversight[111]. - The Company’s annual report includes biographical details of directors, supervisors, and senior management[180]. Employee Information - The Group had approximately 510 full-time employees as of December 31, 2018, with staff costs reported at approximately RMB 21,160,000[89]. - Employer's pension scheme contributions for the year were approximately RMB5,852,000, compared to RMB5,722,000 in 2017[159].