Financial Performance - The company's total revenue for the year ended December 31, 2024, was RMB 17,143,000, a decrease of 35.7% compared to RMB 26,717,000 in 2023[6] - Gross profit for the same period was RMB 6,428,000, down 48.0% from RMB 12,384,000 in the previous year[6] - The net loss for the year was RMB 33,620,000, compared to a net loss of RMB 10,375,000 in 2023, representing a significant increase in losses[6] - The company's basic and diluted loss per share was RMB 0.11, compared to RMB 0.03 in the previous year[6] - The company reported a loss attributable to owners of approximately RMB 33,534,000 for the year ended December 31, 2024, compared to a loss of RMB 10,392,000 in 2023[32] - The company recorded an after-tax loss of approximately RMB 33,620,000 for the year ended December 31, 2024, compared to a loss of RMB 10,375,000 in 2023[51] Revenue Breakdown - Total revenue from fiber optic products for the year 2024 was RMB 17,143,000, a decrease of 35.8% from RMB 26,717,000 in 2023[24] - The largest revenue contributor was the fiber optic imaging device, generating RMB 7,014,000, accounting for 41% of total revenue in 2024, down from 65% in 2023[24] - Revenue from external customers in China increased to RMB 15,402,000 in 2024 from RMB 11,949,000 in 2023, representing a growth of 28.5%[26] - Revenue from major customer B was RMB 11,204,000 in 2024, up from RMB 7,526,000 in 2023, indicating a growth of 48.5%[27] Liabilities and Financial Position - Total current liabilities as of December 31, 2024, were RMB 218,430,000, an increase from RMB 192,590,000 in 2023[7] - The company's net current liabilities amounted to RMB 194,219,000, compared to RMB 153,328,000 in the previous year, indicating worsening liquidity[7] - Non-current liabilities were RMB 86,365,000, slightly decreased from RMB 87,381,000 in 2023[8] - As of December 31, 2024, the company's current liabilities and net liabilities were approximately RMB 194,219,000 and RMB 141,921,000, respectively, indicating significant uncertainty regarding the company's ability to continue as a going concern[45] - The total liabilities of the group increased by approximately RMB 24,824,000 to about RMB 304,795,000, an increase of about 8.87% compared to the previous fiscal period[54] - The total equity deficit of the group increased by approximately RMB 33,620,000 to about RMB 141,921,000, compared to RMB 108,301,000 at the end of the previous fiscal period[54] - The group's debt-to-equity ratio as of December 31, 2024, was approximately 200%, up from 173% in 2023[55] Impairment and Asset Management - The company reported a significant impairment loss on trade receivables of RMB 10,177,000, compared to a reversal of RMB 2,240,000 in the previous year[6] - The company reported a significant increase in impairment losses on trade receivables, rising to RMB 10,177,000 in 2024 from a reversal of RMB 2,240,000 in 2023[31] - The company has not recognized any adjustments related to potential asset impairments in its financial statements for the year ending December 31, 2024[13] Liquidity and Financial Measures - The company has implemented measures to improve liquidity, including debt restructuring and seeking further financial support from major shareholders[11] - The company believes it will have sufficient working capital to meet its operational and financial obligations in the next twelve months[12] - The company has entered into new sales contracts for optical fiber products with several independent third-party customers, although there are concerns about sufficient funding for production requirements[42] - The company plans to implement financial measures, including issuing new shares or bonds to attract strategic investors and negotiating debt restructuring with shareholders and lenders[46] - The group has taken measures to improve its liquidity situation, including debt restructuring and seeking further financial support from major shareholders and lenders[61] Operational and Strategic Outlook - The company is currently facing significant uncertainty regarding its ability to continue as a going concern, dependent on successful negotiations for debt restructuring and financial support[13] - The company aims to enhance its operational capabilities by revitalizing long-term assets and extending its product offerings into the civilian market[46] Employee and Corporate Governance - The group employed approximately 295 full-time employees as of December 31, 2024[62] Accounting Standards and Compliance - The company has adopted new or revised Hong Kong Financial Reporting Standards, which have not had a significant impact on its performance or financial position[17] - The company is evaluating the potential impacts of new accounting standards that are expected to take effect in future periods, with no significant effects anticipated at this time[21] Other Financial Information - The company has not declared any dividends for the years ended December 31, 2024, and 2023[34] - The total financial expenses increased to RMB 9,967,000 in 2024 from RMB 8,932,000 in 2023, an increase of about 11.6%[6] - The total interest charged by related parties, including Taiyuan Great Wall and Beijing Zhongze, amounted to approximately RMB 1,715,000 for the year ended December 31, 2024, compared to RMB 1,518,000 in 2023[52] - The group has not made any acquisitions or disposals of subsidiaries during the year ended December 31, 2024[57]

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 17,143,000, a decrease of 35% compared to RMB 26,717,000 in 2023[6] - Gross profit for the same period was RMB 6,428,000, down 48% from RMB 12,384,000 in the previous year[6] - The company reported a loss before tax of RMB 33,620,000, compared to a loss of RMB 10,375,000 in 2023, indicating a significant increase in losses[6] - Basic and diluted loss per share was RMB 0.11, compared to RMB 0.03 in the previous year[6] - The company reported a loss attributable to owners of approximately RMB 33,534,000 for the year ended December 31, 2024, compared to a loss of RMB 10,392,000 in 2023[32] - The company recorded an after-tax loss of approximately RMB 33,620,000 for the year ended December 31, 2024, compared to a loss of RMB 10,375,000 in 2023[51] Current and Non-Current Liabilities - Total current liabilities as of December 31, 2024, were RMB 218,430,000, an increase from RMB 192,590,000 in 2023[7] - The company's net current liabilities amounted to RMB 194,219,000, compared to RMB 153,328,000 in the previous year, reflecting worsening liquidity[7] - Non-current liabilities totaled RMB 86,365,000, slightly down from RMB 87,381,000 in 2023[8] - The company has outstanding bank and other borrowings of approximately RMB 70,770,000, with RMB 11,944,000 overdue[11] - As of December 31, 2024, the company's current liabilities and net liabilities were approximately RMB 194,219,000 and RMB 141,921,000, respectively, indicating significant uncertainty regarding the company's ability to continue as a going concern[45] Revenue Sources and Trends - Total revenue from fiber optic products for the year 2024 was RMB 17,143,000, a decrease of 35.8% compared to RMB 26,717,000 in 2023[24] - The largest revenue contributor in 2024 was the fiber optic imaging device, accounting for 41% of total revenue, down from 65% in 2023[24] - Revenue from external customers in China increased to RMB 15,402,000 in 2024 from RMB 11,949,000 in 2023, representing a growth of 28.5%[26] - Revenue from major customer B was RMB 11,204,000 in 2024, up from RMB 7,526,000 in 2023, indicating a growth of 48.5%[27] - The company's revenue from Russia significantly decreased from RMB 11,884,000 in 2023 to RMB 365,000 in 2024, reflecting a decline of 96.9%[26] Liquidity and Financial Measures - The company is implementing measures to improve liquidity, including debt restructuring and seeking further financial support from major shareholders[11] - The company has not yet successfully negotiated debt restructuring or interest reduction plans, which poses a significant uncertainty for its ability to continue operations[13] - The company believes it will have sufficient working capital to meet its operational and financial obligations in the next twelve months[12] - The company plans to implement financial measures, including issuing new shares or bonds to attract strategic investors and negotiating debt restructuring with shareholders and lenders[46] - The company received a government subsidy of RMB 20,000,000 for industrial transformation and technology upgrade projects, although refinancing efforts have faced challenges[44] Asset and Equity Position - As of December 31, 2024, the total assets of the group decreased by approximately RMB 8,796,000 to about RMB 162,874,000, a reduction of about 5.12% compared to the previous fiscal period[54] - The total liabilities of the group increased by approximately RMB 24,824,000 to about RMB 304,795,000, an increase of about 8.87% compared to the previous fiscal period[54] - The total equity deficit of the group increased by approximately RMB 33,620,000 to about RMB 141,921,000, compared to RMB 108,301,000 at the end of the previous fiscal period[54] - The group's debt-to-equity ratio as of December 31, 2024, was approximately 200%, up from 173% in 2023[55] Operational Insights - The company’s sales typically grant customers a 90-day credit period, with new customers required to pay a deposit or cash on delivery[28] - The company has entered into new sales contracts for optical fiber products with several independent third-party customers, although there are concerns about sufficient funding for production requirements[42] - The company is exploring opportunities to lease out underutilized properties to generate additional income and is focusing on research and development of new products[46] - The group has approximately 295 full-time employees as of December 31, 2024[62] Impairment and Financial Expenses - The total financial expenses increased to RMB 9,967,000 in 2024 from RMB 8,932,000 in 2023, marking an increase of about 11.6%[6] - The company reported a significant impairment loss on trade receivables of RMB 10,177,000 in 2024, compared to a reversal of RMB 2,240,000 in 2023[31] - The net amount of trade receivables decreased significantly to RMB 5,881,000 in 2024 from RMB 17,026,000 in 2023, indicating a decline of approximately 65.5%[35] Taxation - The company maintained a corporate income tax rate of 15% for both 2024 and 2023, benefiting from a tax incentive that is set to expire on December 6, 2024[30] Subsidiaries and Related Parties - The group did not acquire or sell any subsidiaries during the fiscal year ending December 31, 2024[57] - The group received financial support from related parties, with amounts payable to Taiyuan Great Wall of approximately RMB 23,803,000 and to Beijing Zhongze of approximately RMB 1,475,000 as of December 31, 2024[52] - The total interest charged by Taiyuan Great Wall, Beijing Zhongze, and related parties amounted to approximately RMB 1,715,000, compared to RMB 1,518,000 in the previous year[52]

Report Overview [Company Information and GEM Characteristics](index=1&type=section&id=Company%20Information%20and%20GEM%20Characteristics) This 2024 interim report for Shanxi Great Wall Micro-Light Equipment Co., Ltd., listed on HKEX GEM, emphasizes higher investment risks for SMEs and the directors' full responsibility for report accuracy - The Company's H shares are listed on the GEM of HKEX, which serves as a listing platform for small and medium-sized enterprises with **higher investment risks**[1](index=1&type=chunk)[10](index=10&type=chunk) - Hong Kong Exchanges and Clearing Limited and the Stock Exchange are not responsible for this report's content, with the Company's directors assuming full responsibility for its accuracy, completeness, and non-misleading nature[1](index=1&type=chunk) Financial Performance [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For H1 2024, the Group shifted from profit to a pre-tax loss due to revenue decline, with basic and diluted loss per share Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data (For the six months ended June 30) | Indicator | 2024 (RMB thousands) | 2023 (RMB thousands) | Change (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 9,046 | 21,987 | (12,941) | -58.86% | | Cost of sales | (5,468) | (12,584) | 7,116 | -56.55% | | Gross profit | 3,578 | 9,403 | (5,825) | -61.95% | | Other income, gains and losses | 1,227 | 5,661 | (4,434) | -78.32% | | Selling and distribution expenses | (150) | (379) | 229 | -60.42% | | Administrative and other operating expenses | (7,330) | (8,354) | 1,024 | -12.26% | | Finance costs | (1,233) | (3,007) | 1,774 | -59.00% | | Profit/(loss) before tax | (3,908) | 3,324 | (7,232) | -217.58% | | Profit/(loss) and total comprehensive profit/(loss) for the period | (3,908) | 3,324 | (7,232) | -217.58% | | Attributable to owners of the Company | (3,908) | 3,324 | (7,232) | -217.58% | | Basic and diluted earnings/(loss) per share | (0.013) | 0.011 | (0.024) | -218.18% | [Condensed Consolidated Statement of Financial Position](index=5&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group reported significant net current and total liabilities, raising substantial going concern uncertainty Condensed Consolidated Statement of Financial Position Key Data | Indicator | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | Change (RMB thousands) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Non-current assets | 130,565 | 132,408 | (1,843) | -1.39% | | Current assets | 44,867 | 39,262 | 5,605 | 14.28% | | Current liabilities | 202,047 | 192,590 | 9,457 | 4.91% | | Net current liabilities | (157,180) | (153,328) | (3,852) | 2.51% | | Total liabilities | 287,641 | 279,971 | 7,670 | 2.74% | | Total equity | (112,209) | (108,301) | (3,908) | 3.61% | - As of June 30, 2024, the Group's net current liabilities were approximately **RMB 157,180 thousand** and net liabilities were **RMB 112,209 thousand**, indicating significant uncertainty regarding its ability to continue as a going concern[4](index=4&type=chunk)[6](index=6&type=chunk)[11](index=11&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For H1 2024, total equity attributable to owners further decreased due to a comprehensive loss, worsening negative equity Condensed Consolidated Statement of Changes in Equity Key Data | Indicator | January 1, 2024 (RMB thousands) | June 30, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Share capital | 30,886 | 30,886 | 0 | | Reserves | (139,076) | (142,984) | (3,908) | | Equity attributable to owners of the Company | (108,190) | (112,098) | (3,908) | | Non-controlling interests | (111) | (111) | 0 | | Total equity | (108,301) | (112,209) | (3,908) | - In the first half of 2024, equity attributable to owners of the Company further decreased due to a total comprehensive loss of **RMB 3,908 thousand** for the period[8](index=8&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For H1 2024, net cash from operating activities turned positive, with a slight increase in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Key Data (For the six months ended June 30) | Indicator | 2024 (RMB thousands) | 2023 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Net cash flows from operating activities | 240 | (1,032) | 1,272 | | Net cash flows from investing activities | (47) | (116) | 69 | | Net cash flows from financing activities | (161) | 1,060 | (1,221) | | Increase/(decrease) in cash and cash equivalents | 32 | (89) | 121 | | Cash and cash equivalents at end of period | 309 | 316 | (7) | - Net cash flows from operating activities turned positive at **RMB 240 thousand** in 2024, compared to a negative **RMB 1,032 thousand** in the same period of 2023[9](index=9&type=chunk) Notes to the Condensed Consolidated Financial Statements [General Information](index=9&type=section&id=General%20Information) Shanxi Great Wall Micro-Light Equipment Co., Ltd. was incorporated in China on November 10, 2000, with its H shares listed on the GEM of HKEX - The Company was incorporated in China as a joint stock limited company on November 10, 2000, with its H shares listed on the GEM of HKEX[10](index=10&type=chunk) [Basis of Preparation for Going Concern](index=9&type=section&id=Basis%20of%20Preparation%20for%20Going%20Concern) Significant liabilities as of June 30, 2024, raise substantial doubt about the Group's going concern, despite Board measures to improve liquidity - As of June 30, 2024, the Group's net current liabilities were approximately **RMB 157,180 thousand**, net liabilities approximately **RMB 112,209 thousand**, and outstanding bank and other borrowings approximately **RMB 71,398 thousand**, raising significant doubt about its ability to continue as a going concern[11](index=11&type=chunk) - The Board has taken measures to improve liquidity, including negotiating debt restructuring with shareholders, lenders, and banks, seeking interest waivers, securing financial assistance, and revitalizing idle assets[11](index=11&type=chunk) [Basis of Preparation](index=10&type=section&id=Basis%20of%20Preparation) The condensed consolidated financial statements are prepared according to HKAS 34 and GEM Listing Rules, with consistent accounting policies - The condensed consolidated financial statements are prepared in accordance with HKAS 34 and the GEM Listing Rules, with principal accounting policies consistent with the 2023 annual report[12](index=12&type=chunk) [Adoption of New and Revised Hong Kong Financial Reporting Standards](index=10&type=section&id=Adoption%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group adopted new and revised HKFRS effective January 1, 2024, with no material impact on financial statements - The Group has adopted all new and revised Hong Kong Financial Reporting Standards effective January 1, 2024, but their adoption has not had a material impact on the financial statements[13](index=13&type=chunk) [Revenue](index=11&type=section&id=Revenue) The Group's revenue from fiber optic products significantly decreased in H1 2024, primarily due to reduced overseas orders - Revenue represents the net invoiced value of goods sold, after deducting provisions for returns, trade

山西長城微光器材股份有限公司 SHANXI CHANGCHENG MICROLIGHT EQUIPMENT CO. LTD.* （於中華人民共和國註冊成立之股份有限公司） （股份代號：8286） 截至二零二四年六月三十日止六個月的 中期業績公告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上巿的市場，此等公司相比起其他在聯交所上巿 的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經 過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之證券 承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本公告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示，概不就因本公告全部或任何部份內容而產生或因倚賴該 等內容而引致的任何損失承擔任何責任。 本公告乃遵照聯交所GEM證券上市規則之規定而提供有關山西長城微光器材股份有限公 司（「本公司」）之資料，本公司各董事願共同及個別對此承擔全部責任。本公司董事經作 出一切合理查詢後確認， ...

Loan Agreements and Repayment - The company has signed five loan agreements since June 2016, with a total principal of approximately RMB 14.859 million at an interest rate of 12%[17] - As of December 31, 2023, the company has repaid approximately RMB 7.9 million in principal and RMB 1.964 million in interest from the loans[17] - The company has a total outstanding loan principal of approximately RMB 6.959 million, with corresponding unpaid interest of about RMB 0.9 million as of December 31, 2023[17] - The company has extended the loan term for RMB 50 million from another lender until December 31, 2026, and waived interest totaling approximately RMB 24 million due by March 31, 2023[18] - The company plans to raise RMB 20 million through a rights issue, with ongoing discussions to reduce interest rates on loans from shareholders totaling approximately RMB 14.6 million at an interest rate of 4.35%[21] - The original principal of a loan from Huaxia Bank is RMB 13 million, with a remaining balance of approximately RMB 6.02 million at an interest rate of 7.125%, and negotiations for refinancing are ongoing[25] Equity Financing and Investor Relations - The company plans to complete the revision of its articles of association and communicate with potential investors regarding equity financing by September 30, 2024[16] - The company is actively communicating with Hong Kong brokers and other domestic and foreign institutions to discuss the equity financing plan[18] - The company aims to combine equity financing, debt restructuring, and asset activation to increase fundraising efficiency[3] Business Development and Client Engagement - The company is currently in discussions with three new clients, with two already undergoing product certification and one in the bidding process[19] Asset Management and Sales - The company intends to sell approximately 36,000 square meters of non-operational properties, with an estimated market value of RMB 190 million, adjusting the plan to first sell 12,000 square meters, expecting to generate RMB 75 million in sales revenue and RMB 50 million in cash flow after taxes[23] Financial Health and Audit Concerns - The audit report for the year ending December 31, 2023, includes a disclaimer regarding the company's ability to continue as a going concern due to multiple uncertainties[11] - The company has expressed great confidence in the measures to improve cash flow and has discussed these with the audit committee and auditors[6] - The company’s financial situation is improving, but measures such as rights issues and asset sales are progressing slowly due to the economic environment[35] Debt Restructuring Initiatives - The company is exploring debt-to-equity swaps with creditors and will initiate this process after revising internal regulations[25]

Financial Performance - For the three months ended March 31, 2024, the company's revenue was RMB 3,106,000, a decrease of 69.1% compared to RMB 10,053,000 for the same period in 2023[4] - The cost of sales for the same period was RMB 1,626,000, resulting in a gross profit of RMB 1,480,000, down 65.1% from RMB 4,244,000 in the previous year[4] - The company reported a net loss of RMB 4,001,000 for the first quarter of 2024, compared to a net loss of RMB 302,000 in the same quarter of 2023, indicating a significant increase in losses[4] - Basic and diluted loss per share for the first quarter of 2024 was RMB 0.013, compared to RMB 0.001 for the same period in 2023[15] - Financial expenses for the first quarter of 2024 totaled RMB 2,068,000, an increase from RMB 861,000 in the previous year[12] - Other income, gains, and losses for the first quarter of 2024 were RMB 627,000, slightly up from RMB 567,000 in the same period last year[4] - For the three months ended March 31, 2024, the company's sales amounted to approximately RMB 3,106,000, a decrease of about 69.10% compared to RMB 10,053,000 for the same period in 2023[25] - The cost of sales for the same period was approximately RMB 1,626,000, down about 72.01% from RMB 5,809,000 in the previous year[26] - The company recorded a net loss of approximately RMB 4,001,000 for the three months ended March 31, 2024, compared to a net loss of RMB 302,000 for the same period in 2023[28] Financial Position and Liabilities - The company's net liabilities as of March 31, 2024, were approximately RMB 112,302,000, raising significant doubts about its ability to continue as a going concern[7] - As of March 31, 2024, the company's total liabilities amounted to approximately RMB 112,302,000, raising significant doubts about its ability to continue as a going concern[20] - As of March 31, 2024, the company had outstanding bank borrowings of RMB 6,020,000, with the loan term extended to June 30, 2024[31] - The company received financial support from related parties, with amounts payable to Taiyuan Changcheng totaling approximately RMB 22,300,000 as of March 31, 2024[29] - The company has pledged assets worth approximately RMB 41,250,000 as collateral for its bank borrowings[34] Corporate Governance and Compliance - The company has established an audit committee in compliance with GEM Listing Rules, consisting of two independent non-executive directors and one non-executive director[52] - The audit committee is responsible for reviewing and supervising the financial reporting system, risk management, and internal control systems of the group[52] - The board of directors comprises eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[54] - The company has adopted a set of standard codes for securities trading by directors, which are not less stringent than the required standards under GEM Listing Rules[50] - The company has complied with the corporate governance code as per GEM Listing Rules Appendix 15, except for the lack of insurance arrangements for directors against legal actions due to budget constraints[51] - The company is committed to maintaining high standards of corporate governance and compliance with relevant regulations[51] - The chairman of the audit committee is Mr. Xu Yongfeng[52] Strategic Initiatives - The company has implemented measures to improve its liquidity, including debt restructuring and seeking financial support from major shareholders[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[22] - The company aims to enhance its operational efficiency by leasing out underutilized properties to generate additional income and extending its product offerings into civilian markets[22] Shareholder Information - As of March 31, 2024, the major shareholder Zhang Shaohui holds approximately 82,200,000 shares, representing 41.34% of the domestic shares[39] - The total number of H shares held by director Yuan Guoliang is 3,895,000, representing 3.54% of the total shares[36] Other Information - The board of directors did not recommend the payment of any dividends for the three months ended March 31, 2024, consistent with the previous year[16] - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from January 1, 2024, with no significant impact on its financial statements[10] - The company has no significant contracts that would impact its business as of March 31, 2024[46] - No stock option plans are in place for the group[44] - There were no purchases, sales, or redemptions of the company's listed securities during the three months ending March 31, 2024[43] - The company has not granted any stock purchase rights to directors or supervisors during the reporting period[45] - The company does not have any competitive interests among its directors, supervisors, and management as of March 31, 2024[48] - The company has no new product or technology developments reported in the current quarter[38] - There are no indications of market expansion or mergers and acquisitions in the recent reports[38] - The company has not disclosed any future performance guidance or outlook in the current quarter[38] - The unaudited performance for the three months ending March 31, 2024, has been reviewed by the audit committee[52] - The report will be available on the Hong Kong Stock Exchange website for at least seven days from the publication date[54] - The report was published on May 14, 2024[54]

Financial Performance - For the three months ended March 31, 2024, the company's revenue was RMB 3,106,000, a decrease of 69.1% compared to RMB 10,053,000 for the same period in 2023[5] - The cost of sales for the same period was RMB 1,626,000, down from RMB 5,809,000, resulting in a gross profit of RMB 1,480,000, a decline of 65.1% from RMB 4,244,000[5] - The company reported a loss before tax of RMB 4,001,000 for the three months ended March 31, 2024, compared to a loss of RMB 302,000 for the same period in 2023, indicating a significant increase in losses[5] - Basic and diluted loss per share for the period was RMB 0.013, compared to RMB 0.001 for the same period in 2023, reflecting a substantial increase in per-share losses[17] - The company recorded a net loss of approximately RMB 4,001,000 for the three months ended March 31, 2024, compared to a net loss of RMB 302,000 for the same period in 2023[29] Financial Position - The company's net liabilities as of March 31, 2024, were approximately RMB 112,302,000, raising significant doubts about its ability to continue as a going concern[8] - As of March 31, 2024, the company's total liabilities amounted to approximately RMB 112,302,000, raising significant doubts about its ability to continue as a going concern[22] - As of March 31, 2024, the company had outstanding bank loans of RMB 6,020,000, with the loan term extended to June 30, 2024[32] - The company has pledged assets valued at approximately RMB 41,250,000 as collateral for its bank loans[35] Liquidity and Financial Strategy - The company has implemented measures to improve liquidity, including debt restructuring discussions with shareholders and lenders[8] - 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[24] - Financial expenses for the period were RMB 2,068,000, a decrease from RMB 2,338,000 in the same period last year, primarily due to lower interest expenses[13] - The company received financial support from related parties, with amounts payable to Taiyuan Changcheng and Beijing Zhongze totaling approximately RMB 22,300,000 and RMB 1,507,000, respectively[30] Operational Strategy - The company aims to enhance its operational efficiency by leasing out underutilized properties and developing new products to extend its market reach[24] - The company is focusing on expanding its customer base and revenue sources by leveraging its technological advantages in military products to enter the civilian market[24] Shareholder Information - As of March 31, 2024, the major shareholder Zhang Shaohui holds 82,200,000 shares, representing approximately 41.34% of the domestic shares[40] - Beijing Zhongze Venture Capital Management Co., Ltd. also holds 82,200,000 shares, equivalent to 41.34% of the domestic shares[40] - Taiyuan Changcheng Optoelectronics Co., Ltd. possesses 80,160,000 shares, accounting for 40.31% of the domestic shares[40] - Beijing Yuankang Technology Co., Ltd. has 34,000,000 shares, which is 17.10% of the domestic shares[40] - Ning Shuwu holds 34,000,000 shares, representing 17.10% of the domestic shares[40] - Taiyuan Tanghai Automatic Control Co., Ltd. owns 24,900,000 shares, making up 12.52% of the domestic shares[40] - Liu Jiang holds 24,900,000 shares, which is 12.52% of the domestic shares[40] - Qiu Guiqing has 24,900,000 shares, representing 12.52% of the domestic shares[40] Corporate Governance - The board of directors has not recommended the payment of dividends for the three months ended March 31, 2024, consistent with the previous year[18] - The company has established an audit committee in compliance with GEM Listing Rules, consisting of two independent non-executive directors and one non-executive director[54] - The audit committee has reviewed the unaudited performance of the group for the three months ending March 31, 2024[54] - The board of directors comprises eight members, including three executive directors and three independent non-executive directors[56] Other Information - Other income, net of losses, was RMB 627,000, slightly up from RMB 567,000 in the previous year, indicating some stability in non-operating income[5] - The company has not recognized any tax expenses for the period due to a lack of taxable profits in Hong Kong[16] - No significant contracts were reported that would impact the group's business as of March 31, 2024[48] - There were no purchases, sales, or redemptions of the company's listed securities during the three months ending March 31, 2024[45]

Financial Performance - For the year ended 31 December 2023, the Group's revenue was approximately RMB 26,717,000, representing an increase of approximately 71.98% compared to RMB 15,535,000 in 2022[42][46]. - The cost of sales for the year ended 31 December 2023 was approximately RMB 14,333,000, an increase of approximately 49.65% from RMB 9,578,000 in the previous year[44][46]. - The gross profit margin for the Group improved to 46.35% in 2023, up from 38.35% in 2022, due to increased market prices and improved product quality[45][46]. - For the year ended 31 December 2023, the Group recorded other income, gains, and losses of approximately RMB8,401,000, a significant decrease of approximately RMB27,080,000 compared to RMB35,481,000 in 2022[48]. - Administrative and other operating expenses for the year ended 31 December 2023 were approximately RMB23,802,000, representing an increase of approximately RMB106,000 from RMB23,696,000 in 2022[49]. - Finance costs increased to approximately RMB8,932,000 for the year ended 31 December 2023, up approximately RMB639,000 from RMB8,293,000 in 2022[50]. - The Group reported a loss after tax of approximately RMB10,375,000 for the year ended 31 December 2023, compared to a profit of RMB7,207,000 in 2022[50]. - As at 31 December 2023, total assets increased by approximately RMB21,022,000 to approximately RMB171,670,000, representing an increase of approximately 13.95% compared to RMB150,648,000 at the end of the previous financial period[60]. - Total liabilities increased by approximately RMB31,397,000 to approximately RMB279,971,000, representing an increase of approximately 12.63% compared to RMB248,574,000 at the end of the previous financial period[61]. - The gearing ratio as at 31 December 2023 was approximately 173%, a decrease from 178% in 2022[66]. Operational Developments - The Group's production and sales significantly increased in 2023, despite a challenging operating environment[18]. - The Group produces five main products, including fiber optic inverters and microchannel plates, primarily used in military applications[24]. - The Group's image transmission fiber optic products consist of over 10 million optical fibers, facilitating high-quality image transmission[23]. - The Group's production and sales volume increased significantly in 2023, contributing to the overall revenue growth despite some orders being postponed[42][43]. - The Group plans to restart its refinancing initiatives and technical upgrading projects that were previously suspended due to the COVID-19 pandemic[27]. - The Group is focusing on developing new products to extend the downstream of the industrial chain and strengthen existing sales forces[33][34]. - The Group aims to revitalize long-term assets by leasing out unused properties to increase property income[33][34]. Financial Position and Strategy - As of 31 December 2023, the Group had net current liabilities of approximately RMB 153,328,000 and net liabilities of approximately RMB 108,301,000, raising concerns about its ability to continue as a going concern[32][34]. - The Group plans to introduce new strategic investors through a private placement of new shares/bonds to improve its financial position[33][34]. - The Group has entered into revised loan agreements to extend the term of existing loans totaling RMB 14,600,000 to 31 December 2026, with interest payments delayed until 2026[36][39]. - The Group's outstanding bank borrowing as of 31 December 2023 was RMB 6,020,000[38][39]. - The Company plans to raise funds through private placement to optimize its capital structure and implement a technical transformation program[82]. - Management is preparing fundraising plans, including equity financing and debt restructuring, to ensure rapid recovery of operations[85]. - The Company believes that financial performance will show further improvement in the foreseeable future based on proposed strategic measures[82]. - The impact of the epidemic is gradually diminishing in 2023, prompting the Company to consider measures to improve its financial condition[82]. - The management will continue to strengthen financial and operational measures to ensure rapid recovery[85]. - The Company has reasons to believe that its financial performance will improve due to the implementation of strategic measures[82]. - The Company is actively promoting the implementation of its technical transformation program[82]. - The management is focused on optimizing the capital structure through a two-pronged approach[82]. Shareholder and Governance Information - As of December 31, 2023, the company has a substantial shareholder, Zhang Shao Hui, holding 82,200,000 domestic shares, representing approximately 41.34% of the total share capital[177]. - Taiyuan Changcheng Optics Electronics Industrial Company Limited holds 80,160,000 domestic shares, accounting for approximately 40.31% of the total share capital[177]. - The company’s directors and supervisors have no interests or short positions in the shares or debentures of the company as of December 31, 2023[174]. - The board of directors and supervisors are subject to a three-year term, with reappointment required at the end of each term[161][162]. - The company has not disclosed any service contracts for directors and supervisors that cannot be terminated within one year without compensation, other than statutory compensation[167]. - The company’s board and supervisory committee elections have been postponed to ensure continuity of governance[161][162]. - As of December 31, 2023, the company’s directors and supervisors have interests in the shares and debentures as recorded in the required register[168]. - The five highest-paid individuals' remuneration details are included in the consolidated financial statements[166]. - The company is committed to complying with the GEM Listing Rules and relevant legal regulations regarding the disclosure of interests and positions[174]. Dividend and Reserves - For the year ended December 31, 2023, the board of directors does not recommend the payment of a final dividend, consistent with the previous year[126]. - As of December 31, 2023, the Company had reserves amounting to RMB Nil available for dividend distribution to shareholders, unchanged from 2022[129]. - The reserves of the Group remained unchanged at RMB Nil as of December 31, 2023[129]. - The Company did not recommend the payment of a final dividend for the year ended December 31, 2023, consistent with 2022[133]. Customer and Supplier Information - For the year ended December 31, 2023, the Group's largest customer accounted for approximately 44% of total turnover, up from 28% in 2022[142]. - The five largest customers accounted for approximately 92% of total turnover, compared to 90% in 2022[142]. - The Group's largest supplier accounted for approximately 25% of total purchases, down from 30% in 2022[142]. - The five largest suppliers accounted for approximately 51% of total purchases, down from 62% in 2022[142]. Audit and Compliance - The auditors issued a disclaimer of opinion regarding the consolidated financial statements for the year ended December 31, 2023[82]. - The annual report includes audited consolidated financial statements for the year ended December 31, 2023[123]. - The financial summary for the past five years is provided in the annual report[127]. - The business review and financial review for the year ended December 31, 2023, are included in the "Management Discussion and Analysis" section[128].

Financial Performance - For the year ended 31 December 2023, the Group's revenue was approximately RMB26,717,000, representing an increase of approximately 71.98% compared to RMB15,535,000 in 2022[46]. - The cost of sales for the year ended 31 December 2023 was approximately RMB14,333,000, an increase of approximately 49.65% from RMB9,578,000 in 2022[48]. - The gross profit margin for the Group improved to 46.35% in 2023, up from 38.35% in 2022, due to increased market prices and improved product quality[49]. - Other income, gains, and losses decreased significantly to approximately RMB8,401,000 in 2023 from RMB35,481,000 in 2022, a decrease of approximately RMB27,080,000[52]. - Administrative and other operating expenses slightly increased to approximately RMB23,802,000 in 2023 from RMB23,696,000 in 2022[53]. - The Group recorded a loss after tax of approximately RMB10,375,000 in 2023, compared to a profit of RMB7,207,000 in 2022[54]. - Total assets increased by approximately RMB21,022,000 to approximately RMB171,670,000, representing an increase of approximately 13.95%[64]. - Total liabilities increased by approximately RMB31,397,000 to approximately RMB279,971,000, representing an increase of approximately 12.63%[65]. - The gearing ratio as of 31 December 2023 was approximately 173%, a slight improvement from 178% in 2022[70]. - As of December 31, 2023, the Group's total equity deficit decreased by approximately RMB 10,375,000 to about RMB 108,301,000, compared to approximately RMB 97,926,000 at the end of the previous fiscal period[76]. Operational Strategy - The Group's production and sales have significantly increased in 2023, reflecting efforts to develop core businesses and improve efficiency[22]. - The Board aims to reduce operating costs and enhance product quality to restore profit growth[22]. - The Company is focused on improving operations, production, research & development, and market development capabilities to enhance corporate value and financial performance[22]. - The Group plans to revitalize long-term assets and lease out temporarily unused properties to increase property income[37][38]. - The Group aims to develop new products to extend the downstream of the industrial chain and strengthen existing sales forces[37][38]. - The Group's refinancing initiatives and technical upgrading projects will be restarted as appropriate after being delayed due to the COVID-19 pandemic[31][33]. - The management plans to implement financial and operational measures to ensure rapid recovery of the Group's operations[89]. 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 technological upgrade project[30][33]. - Financial assistance from Taiyuan Changcheng amounted to approximately RMB 22,100,000 as of December 31, 2023, an increase from RMB 20,335,000 in 2022[156]. - Financial assistance from Beijing Gensir was approximately RMB 1,313,000 as of December 31, 2023, up from RMB 549,000 in 2022[157]. - Total interest charged by Taiyuan Changcheng was approximately RMB 1,465,000 in 2023, compared to RMB 1,298,000 in 2022[158]. Management and Governance - The management team expresses gratitude to employees for their contributions and to shareholders for their support[23]. - The company has a strong management team with members holding significant qualifications, including certified public accountants and finance managers[106][109]. - The company has been focusing on research and development, with Mr. Dong Yonghong serving as the project manager of the R&D center since February 2006[119]. - The company is actively expanding its market presence, leveraging the expertise of its directors and senior management in various sectors[110]. - The board of directors includes independent non-executive directors who contribute to the audit and remuneration committees, ensuring governance and compliance[106][109]. - The Company continues to perform duties under relevant laws and regulations until the completion of the re-election process[162]. Employee and Labor Relations - The Group had approximately 320 full-time employees as of December 31, 2023[85]. - The company has a commitment to employee welfare, with Ms. Han Xiaoou serving as the chairman of the labor union[115]. - The Group reported employer's pension scheme contributions of approximately RMB 4,510,000 in 2023, compared to RMB 5,072,000 in 2022[145]. Customer and Supplier Concentration - The Group's largest customer accounted for approximately 44% of total turnover in 2023, up from 28% in 2022[146]. - The five largest customers accounted for approximately 92% of total turnover in 2023, compared to 90% in 2022[146]. - The Group's largest supplier accounted for approximately 25% of total purchases in 2023, down from 30% in 2022[146]. - The five largest suppliers accounted for approximately 51% of total purchases in 2023, down from 62% in 2022[146]. Shareholder Information - The Company does not recommend the payment of a final dividend for the year ended December 31, 2023, consistent with 2022[130]. - As of December 31, 2023, the Company had reserves available for dividend distribution amounting to RMB Nil, unchanged from 2022[133]. - The directors of the Company are appointed for a term of three years, with re-election postponed to maintain continuity due to the incomplete nomination process[162]. - The supervisors of the Company are also appointed for a term of three years, with their re-election postponed for the same reason as the directors[163]. Audit and Compliance - The auditors issued a disclaimer of opinion regarding the audit of the consolidated financial statements for the year ended December 31, 2023[86]. - The Company has not disclosed any service contracts for directors and supervisors that cannot be terminated within one year without compensation, other than statutory compensation[171]. - No significant contracts related to the Group's business existed during the year ended December 31, 2023, involving directors or supervisors with material interests[195]. - The directors believe that there were no competing business interests among directors, supervisors, and management shareholders during the year ended December 31, 2023[197].

Financial Performance - For the three months ended September 30, 2023, the company reported revenue of RMB 9,387,000, a significant increase from RMB 2,671,000 in the same period of 2022, representing a growth of 251%[4] - The gross profit for the nine months ended September 30, 2023, was RMB 13,346,000, compared to RMB 310,000 for the same period in 2022, indicating a substantial increase in profitability[4] - The total comprehensive income for the nine months ended September 30, 2023, was RMB 1,342,000, a significant recovery from a loss of RMB 14,263,000 in the same period of 2022[4] - For the nine months ended September 30, 2023, the group recorded a profit after tax of approximately RMB 1,342,000 for the nine months ended September 30, 2023, compared to a loss of approximately RMB 14,263,000 for the same period last year[32] - Other income, gains, and losses for the nine months ended September 30, 2023, amounted to approximately RMB 6,253,000, an increase of approximately RMB 4,463,000 compared to RMB 1,790,000 for the same period last year[29] Losses and Improvements - The company incurred a loss before tax of RMB 1,982,000 for the three months ended September 30, 2023, an improvement from a loss of RMB 4,135,000 in the same period of 2022[4] - For the nine months ended September 30, 2023, the company reported a loss attributable to owners of approximately RMB 1,982,000 and a profit of approximately RMB 1,342,000 for the same period in 2022, compared to losses of RMB 4,135,000 and RMB 14,263,000 respectively[15][18] Revenue Sources - Total sales to external customers for the nine months ended September 30, 2023, amounted to RMB 31,374,000, a significant increase from RMB 11,395,000 in the same period of 2022, representing a growth of approximately 175%[22] - The main product categories and their contributions to total revenue for the nine months ended September 30, 2023, included: Fiber Optic Inverter (66%), Microchannel Plate (28%), and others, with Fiber Optic Inverter sales increasing from RMB 6,794,000 (60%) in 2022 to RMB 20,808,000 in 2023[22] Financial Management - The company's financial expenses for the nine months ended September 30, 2023, totaled RMB 5,101,000, down from RMB 6,238,000 in the same period of 2022, reflecting improved cost management[12] - The group had outstanding other borrowings of approximately RMB 61,640,000 as of September 30, 2023[36] - The group received financial assistance from related parties, with amounts payable to Taiyuan Changcheng and Beijing Zhongze totaling approximately RMB 21,303,000 and RMB 1,507,000, respectively, as of September 30, 2023[33] Liquidity and Going Concern - The net current liabilities of the group as of September 30, 2023, were approximately RMB 137,013,000, indicating potential liquidity challenges[6] - As of September 30, 2023, the company's net current liabilities and total liabilities were approximately RMB 137,013,000 and RMB 96,584,000 respectively, indicating significant uncertainty regarding the company's ability to continue as a going concern[24] - The company is actively pursuing measures to improve its liquidity, including debt restructuring and seeking financial support from shareholders and lenders[6] Strategic Initiatives - The company plans to enhance its financial situation by leasing idle assets, developing new products, and strengthening sales capabilities, while also exploring strategic investments and debt restructuring[24][25] - The company aims to leverage its technological advantages in military products to expand into civilian markets, thereby increasing new customer bases and revenue sources[24] Corporate Governance - The company has established an audit committee to review and supervise its financial reporting system, risk management, and internal control systems[59] - The board consists of eight directors, including three executive directors and three independent non-executive directors[60] Shareholder Information - As of September 30, 2023, the company has a total of 34,000,000 domestic shares held by Jia Yaotian, representing approximately 17.10% of domestic shares and 11.01% of total share capital[47] - Beijing Zhongze holds approximately 36.37% of the 24,900,000 domestic shares registered under Taiyuan Tanghai, with Zhang Shaohui deemed to have control over these shares[48] Other Information - The company has not made any provisions for Hong Kong profits tax as it did not generate any taxable profits in Hong Kong for the nine months ended September 30, 2023[13] - The company has not issued any potential dilutive ordinary shares as of September 30, 2023[16] - The company has not purchased, sold, or redeemed any of its listed securities during the nine months ending September 30, 2023[51] - There are no stock option plans in place for the group[52] - The board of directors believes there are no significant contracts that could impact the group's business as of September 30, 2023[54] - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, which did not result in significant changes to its accounting policies[9]