（於開曼群島註冊成立的有限公司） （股份代號：8623） 盈利警告 本公告由中國蜀塔國際控股集團有限公司（「本公司」，連同其附屬公司合稱「本 集團」）根據香港聯合交易所有限公司GEM證券上市規則（「GEM上市規則」）第 17.10條及證券及期貨條例（香港法例第571章）第XIVA部分所述的內幕消息條文 （定義見GEM上市規則）作出。 本公司董事（「董事」）會（「董事會」）謹此通知本公司股東（「股東」）及潛在投資 者，根據董事會對本集團截至2025年6月30日止六個月（「2025年上半年」）未經 審核綜合管理賬目的初步審閱，以及董事會目前可獲得的資訊，本集團預計將 錄得淨虧損約人民幣16.5百萬元（2024年上半年：淨虧損人民幣11.2百萬元）。 相比2024年上半年，2025年上半年淨虧損增加主要歸因於以下因素的綜合影響： – 1 – 香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不對因本公佈全部或任何部分內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 China Saftower International Holdin ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不對因本公佈全部或任何部分內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 China Saftower International Holding Group Limited 中國蜀塔國際控股集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8623） 董事會會議通知 中國蜀塔國際控股集團有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此 宣佈，將於二零二五年八月二十九日（星期五）舉行董事會會議，藉以（其中包 括）(1)考慮及批准本公司及其附屬公司截至二零二五年六月三十日止六個月的 未經審核綜合財務業績（「中期業績」）及分別於香港聯合交易所有限公司（「聯 交所」）及本公司網站刊登相關的中期業績公佈，及(2)考慮派付股息建議（如有）。 承董事會命 中國蜀塔國際控股集團有限公司 主席兼執行董事 本公佈的中英文版本如有任何歧義，概以英文版本為準。 黨飛 香港，二零二五年八月十九日 於本公佈日期，執行董事為黨飛先生、王小仲先生、羅茜女士、周文琦女士、胡倚女士及張 偉賢 ...

Core Viewpoint - China Shuta (08623) announced that Mr. Wang Yifan will resign as the company's executive director due to personal matters, effective from August 6, 2025 [1] Company Summary - The resignation of Mr. Wang Yifan is a significant change in the company's leadership structure [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不對因本公佈全部或任何部分內容而產生或因 倚賴該等內容而引致之任何損失承擔任何責任。 China Saftower International Holding Group Limited 中國蜀塔國際控股集團有限公司 （於開曼群島註冊成立的有限公司） （股份代號：8623） 中國蜀塔國際控股集團有限公司（「本公司」）董事（「董事」）會（「董事會」）宣佈， 自二零二五年八月六日起，王一帆先生（「王先生」）因個人事務而提呈辭任本 公司執行董事。 王先生確認，(1)彼與董事會概無意見分歧，及(2)概無任何與彼辭任有關的事 宜需提請本公司股東及香港聯合交易所（「聯交所」）垂注。 董事會謹藉此機會就王先生於任內對本公司作出的貢獻由衷致謝。 (1)執行董事辭任； (2)重新遵守GEM上市規則 第5.05A條 執行董事辭任 黨飛 香港，二零二五年八月六日 – 1 – 於本公佈日期，執行董事為黨飛先生、王小仲先生、羅茜女士、周文琦女士、胡倚女士及 張偉賢先生，以及獨立非執行董事為左新章博士、李建先生及馬開 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國蜀塔國際控股集團有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 08623 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 400,000,000 | HKD | | 0.1 | HKD | | 40,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 400,000,000 | HKD | | 0.1 | HKD | | 40,000,000 | 本月底法定/註冊股本總額 ...

Financial Performance - The company reported a net loss of RMB 68.2 million for the year ending December 31, 2024, an increase from RMB 60.6 million in the previous year[9]. - Total revenue increased by 4.9% to RMB 256.6 million in 2024, compared to RMB 244.7 million in 2023[9]. - Trade and other receivables impairment losses significantly increased to RMB 43.9 million, impacting overall profitability[9]. - Administrative and other expenses were reduced by 37.3% year-on-year, reflecting improved cost control measures and operational efficiency[11]. - The company recorded a pre-tax loss of RMB 61.6 million in 2024, compared to a loss of RMB 56.8 million in 2023[16]. - The overall gross profit margin remained at 0.4%, indicating price sensitivity and competitive pressure in core markets[9]. - The gross profit increased to RMB 1.0 million in 2024, compared to RMB 0.4 million in 2023, resulting in a gross margin of 0.4% in 2024, up from 0.2% in 2023[27]. - Other income and gains rose significantly from RMB 8.6 million in 2023 to RMB 20.2 million in 2024, primarily due to the recognition of trade receivables[27]. - The company reported a net loss of RMB 68.2 million for 2024, compared to a net loss of RMB 60.6 million in 2023, indicating an increase in losses[30]. Assets and Liabilities - Total assets decreased from RMB 358.8 million in 2023 to RMB 272.8 million in 2024, while total liabilities decreased from RMB 288.3 million to RMB 260.3 million[16]. - The company’s equity decreased significantly from RMB 70.5 million in 2023 to RMB 12.5 million in 2024, leading to a substantial increase in the debt-to-equity ratio[28]. - The company successfully reduced borrowings, restructuring overdue loans from RMB 51.0 million in 2023 to RMB 15.2 million in 2024[11]. Production and Innovation - The polymer cable material factory is expected to commence production by the end of 2024, with confirmed supply agreements anticipated to generate stable income in the coming year[11]. - A new polymer cable material factory is expected to produce over 20,000 tons annually, with a supply agreement for 10,000 tons signed with a state-owned enterprise[22]. - The company aims to enhance product innovation and R&D capabilities as part of its strategic focus[14]. - The company aims to invest in new technologies to develop high-performance, durable, and energy-efficient products[21]. Market Expansion and Growth Opportunities - There is optimism regarding future growth opportunities due to increased government emphasis on infrastructure projects, particularly ultra-high voltage transmission projects[10]. - The company plans to expand its sales network and customer base both domestically and internationally[14]. - The company is optimistic about future growth, particularly in the high-voltage cable market, projected to reach RMB 800 billion by 2025[19]. - The company plans to expand its market presence by increasing sales and marketing efforts and exploring new distribution channels[21]. Corporate Governance - The company has complied with all applicable corporate governance codes as per GEM listing rules[36]. - The board of directors consists of a mix of executive and independent non-executive directors, ensuring a balance of power[39]. - The company has mechanisms in place to ensure the independence of its non-executive directors, adhering to GEM listing rules[41]. - The audit committee held four meetings during the year and reviewed the annual performance and report for the year ending December 31, 2024, ensuring compliance with applicable accounting standards and regulations[48]. - The remuneration committee evaluated the performance of executive directors and approved the compensation plans to remain unchanged, with performance bonuses proposed based on the group's performance in 2024[50]. - The company has established a nomination committee to review the board's structure, size, composition, and diversity, and to recommend suitable candidates for directorship[54]. Employee and Workforce Management - The total number of employees as of December 31, 2024, is 111, with male employees accounting for approximately 70.3% and female employees approximately 29.7%[66]. - The overall employee turnover rate for the reporting period is approximately 32%, a significant decrease from 66% in 2023[133]. - The company has a commitment to equal employment opportunities, prohibiting discrimination based on gender, religion, race, disability, or age[66]. - The company emphasizes a safety-first approach, implementing strict safety management protocols to prevent accidents[140]. - New hires must undergo safety and skills training before commencing work, ensuring compliance with safety regulations[140]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable development and has established environmental, social, and governance (ESG) initiatives as a core part of its business strategy[88]. - The board of directors is responsible for overseeing the company's ESG performance and ensuring effective risk management and internal control systems[89]. - An ESG working group has been established to assist the board in managing ESG-related matters and to report on progress at least once a year[90]. - The company has set environmental goals focusing on emission reduction, waste management, and resource conservation, which are reviewed annually by the board[91]. - The company prioritizes significant ESG issues based on assessments conducted by the board and the ESG working group[94]. Compliance and Risk Management - The company has established a risk management and internal control system, which is reviewed annually by the audit committee and the board[78]. - The company has implemented a shareholder communication policy to enhance engagement with shareholders[82]. - The company has established a whistleblowing policy to enhance stakeholder awareness of reporting processes related to corruption and fraud[160]. - The company has committed to providing anti-corruption training materials to directors and employees at least once a year to strengthen ethical standards[159]. Supplier and Quality Management - The group has developed an effective quality control system, ensuring compliance with customer, regulatory, and legal requirements for products[151]. - The group has obtained ISO 9001:2015 quality management system certification and a national industrial product production license[150]. - The group conducts regular reviews of supplier performance, including aspects such as pricing, timely delivery, and financial status[148]. - The group emphasizes customer satisfaction through standardized service quality and has established a complaint handling procedure to address customer issues[153]. Shareholder and Stock Information - The company has a stock option plan effective for ten years from June 10, 2020, allowing the issuance of up to 80,000,000 shares, which is 10% of the total shares issued at listing[194]. - The total number of shares issued as of the report date is 110,400,000, with an additional 8,000,000 shares potentially to be issued under the stock option plan, representing approximately 7.25% of the issued share capital[196]. - The company plans to conduct a rights issue on February 14, 2025, at a subscription price of HKD 0.11 per share, aiming to raise up to approximately HKD 6,072,000[198]. - Major shareholders include Red Fly with 35,128,000 shares (31.82%) and Fu Chuanrong with 12,063,000 shares (10.93%) as of December 31, 2024[186].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 256,610,000, an increase of 4.9% from RMB 244,688,000 in the previous year[3] - The gross profit for the year was RMB 1,046,000, compared to RMB 371,000 in the previous year, indicating a significant improvement[3] - The net loss for the year was RMB 68,177,000, which is a 12.6% increase from the net loss of RMB 60,585,000 in the prior year[3] - Revenue from wire and cable production and sales reached RMB 236,332 thousand in 2024, up from RMB 190,702 thousand in 2023, representing a growth of approximately 24%[18] - Revenue from carbon nanotubes and conductive agent products was RMB 20,278 thousand in 2024, with no prior year comparison available[18] - The company reported a significant increase in other income and gains, which rose to RMB 20,168,000 from RMB 8,615,000, marking an increase of 134%[3] - The company's total income tax expense for the year ended December 31, 2024, was RMB 6,562,000, compared to RMB 3,744,000 for the year ended December 31, 2023, reflecting an increase of 75.3%[24] - The company reported a basic loss per share of RMB 0.594 in 2024, slightly improved from RMB 0.653 in 2023[27] - The company recorded a net loss of RMB 68,177,000 for the year ended December 31, 2024[73] Assets and Liabilities - The company's total assets decreased to RMB 272,799,000 from RMB 358,849,000, reflecting a decline of approximately 24%[5] - Current liabilities decreased to RMB 224,722,000 from RMB 263,686,000, a reduction of about 14.8%[5] - The company's equity decreased significantly to RMB 12,468,000 from RMB 70,537,000, a drop of about 82.3%[6] - Trade receivables decreased to RMB 114,521,000 from RMB 143,028,000, a decline of approximately 19.9%[5] - The expected credit loss provision for trade receivables rose significantly to RMB 55,313,000 in 2024 from RMB 13,482,000 in 2023, indicating a substantial increase in credit risk[28] - The company's trade payables amounted to RMB 97,285,000 in 2024, a slight increase from RMB 95,435,000 in 2023[32] - The company’s bank borrowings due within one year decreased to RMB 37,465,000 in 2024 from RMB 51,248,000 in 2023, showing a reduction in short-term debt[36] - The total borrowings principal amount was approximately RMB 15,159,000 in 2024, down from RMB 50,999,000 in 2023, indicating a significant reduction in overall debt levels[36] - As of December 31, 2024, the company's net current liabilities amounted to RMB 63,765,000[73] - Total borrowings of the company were RMB 72,528,000, with RMB 49,708,000 due within the next twelve months[73] Operational Efficiency and Strategy - The company aims to enhance operational efficiency by streamlining processes and investing in automation to reduce costs and improve productivity[41] - The company has signed long-term supply agreements with favorable pricing to optimize procurement and extend its regional production base[42] - The company is focusing on innovation and R&D to develop high-performance, durable, and energy-efficient products[40] - The company anticipates the high voltage cable market to reach RMB 800 billion by 2025, driven by national grid upgrades and infrastructure projects[42] - The new polymer cable material factory is expected to produce over 20,000 tons annually, with a supply agreement for 10,000 tons signed with a state-owned enterprise[43] Expenses and Cost Management - Sales and distribution expenses rose by RMB 1.3 million (68.4%) to RMB 3.2 million in 2024, driven by efforts to acquire new customers in China and increased travel costs[51] - Administrative expenses decreased by RMB 15.8 million (37.3%) to RMB 26.6 million in 2024, mainly due to reduced losses from the sale of properties, plants, and equipment[51] - Total financing costs decreased slightly to RMB 7,131 thousand in 2024 from RMB 7,308 thousand in 2023, a reduction of about 2.4%[22] - Depreciation of property, plant, and equipment decreased to RMB 5,714 thousand in 2024 from RMB 8,971 thousand in 2023, a decline of approximately 36.5%[23] Shareholder Information - The average number of ordinary shares outstanding increased to 98,938,000 in 2024 from 92,000,000 in 2023, reflecting a share consolidation effective from July 10, 2024[27] - The company plans to issue up to 55.2 million new shares at a subscription price of HKD 0.11 per share, aiming to raise approximately HKD 6.072 million to strengthen its financial position[38] - The company did not declare or pay any dividends for the year ended December 31, 2024, consistent with 2023[26] Compliance and Governance - The audit committee consists of three independent non-executive directors, ensuring compliance with GEM listing rules[70] - The financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards, reflecting a true and fair view of the company's financial position[72] - The company is committed to transparency and accuracy in its financial disclosures, as confirmed by the board of directors[77] - The company faces significant uncertainties regarding its ability to continue as a going concern due to its financial position[73] Employment and Workforce - The company employed a total of 111 full-time employees as of December 31, 2024, down from 116 in 2023, with total employee benefit expenses of approximately RMB 10.0 million[61] Other Financial Information - The company did not disclose significant impacts from the newly issued accounting standards expected to take effect in the future[11] - There was a default on loans totaling RMB 15,159,000, along with accrued interest of RMB 6,715,000[73] - The total cash and bank balance as of December 31, 2024, was RMB 1,776,000, up from RMB 1,409,000 in 2023[54] - The debt-to-equity ratio significantly increased to 674.8% in 2024 from 163.7% in 2023 due to increased borrowings and reduced equity[54]

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 89,327,000, a decrease of 31.9% compared to RMB 131,192,000 for the same period in 2023[8]. - The gross profit for the first half of 2024 was RMB 1,086,000, compared to RMB 228,000 in the same period of 2023, indicating a significant improvement[8]. - The net loss for the period was RMB 11,220,000, slightly improved from a net loss of RMB 11,385,000 in the prior year[8]. - The basic and diluted loss per share for the period was RMB (1.22), compared to RMB (1.09) in the same period last year[9]. - The company incurred a loss of RMB 81,820,000 during the six months ended June 30, 2024, compared to a loss of RMB 20,569,000 in the same period of 2023, indicating a worsening financial performance[12]. - The total comprehensive income for the period was RMB (11,294,000) for the six months ended June 30, 2024, compared to RMB (10,156,000) in the same period of 2023, showing a slight increase in losses[12]. - The loss attributable to the owners of the company for the six months ended June 30, 2024, was approximately RMB 11,257,000, compared to RMB 10,044,000 in the same period of 2023, indicating an increase in loss of approximately 12.1%[34]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 325,312,000, down from RMB 358,849,000 at the end of 2023[10]. - Current liabilities decreased to RMB 208,294,000 from RMB 263,686,000, resulting in a net current liability of RMB (19,294,000) compared to RMB (44,206,000) in the previous year[10]. - As of June 30, 2024, the company's net assets amounted to RMB 59,280,000, a decrease from RMB 70,537,000 as of December 31, 2023, representing a decline of approximately 16%[11]. - Total equity attributable to the owners of the company was RMB 37,305,000 as of June 30, 2024, down from RMB 48,599,000 at the end of 2023, marking a decrease of approximately 23%[12]. - The company's total liabilities decreased to RMB 71,952,000 from RMB 65,360,000, reflecting a change in financial obligations[39]. - Total borrowings as of June 30, 2024, were RMB 71,391,000, a decrease of 8.9% from RMB 78,098,000 at the end of 2023[42]. Cash Flow and Investments - The cash flow from operating activities for the six months ended June 30, 2024, was RMB 9,178,000, significantly up from RMB 358,000 in the same period of 2023, indicating a substantial improvement in operational cash generation[13]. - The company reported a net cash outflow from investing activities of RMB (18,800,000) for the six months ended June 30, 2024, compared to RMB (7,538,000) in the prior year, reflecting increased investment in property, plant, and equipment[13]. - Cash and cash equivalents decreased by RMB 1,066,000 to RMB 343,000 as of June 30, 2024, compared to RMB 1,864,000 at the end of the previous year, highlighting liquidity challenges[13]. - The company raised RMB 8,214,000 from borrowings during the financing activities for the six months ended June 30, 2024, while repaying RMB 8,710,000, indicating active management of debt[13]. Revenue and Sales - For the six months ended June 30, 2024, the revenue from the production and sales of wires and cables, as well as aluminum products, was RMB 89,327,000, a decrease from RMB 131,192,000 in the same period of 2023, representing a decline of approximately 31.9%[26]. - Major customer A contributed RMB 70,273,000 to the total revenue, compared to RMB 48,070,000 in the previous year, indicating an increase of approximately 46.2%[24]. - The cost of inventory recognized as an expense for the six months ended June 30, 2024, was RMB 88,241,000, down from RMB 130,628,000 in the same period of 2023, representing a decrease of approximately 32.5%[30]. - The cost of sales decreased from RMB 131.0 million for the six months ended June 30, 2023, to RMB 88.2 million for the same period in 2024, a reduction of RMB 42.7 million or 32.6%, consistent with the decline in revenue[49]. Operational Strategies and Future Outlook - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming quarters[8]. - The company is exploring new strategies for market expansion and product development to improve future performance[8]. - The company plans to continue its focus on expanding its production capabilities and enhancing its product offerings in the wire and cable sector, aiming for market growth in China[14]. - The demand for wires and cables is expected to continue growing due to increasing applications in industries such as automotive, construction, and telecommunications[46]. - Continued government investment in infrastructure development is anticipated to drive demand for wires and cables, benefiting manufacturers and suppliers[46]. - The company aims to shift focus from exports to meeting local demand in the domestic market, which could lead to more stable growth and higher profitability[47]. Shareholder Information and Corporate Governance - The company’s issued and paid-up capital remained at 920,000,000 shares, with a total value of RMB 8,222,000 as of June 30, 2024[43]. - The company confirmed that there are no interests or potential conflicts of interest from its controlling shareholders or directors in any business that competes directly or indirectly with the group[75]. - The company’s audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024[79]. - The company’s major shareholders include Fu Chuanrong, holding 120,630,000 shares, which is approximately 13.10% of the total[72]. - The company’s shareholders, Party Fei and Party Jun, collectively control 38.18% of the total issued share capital[73]. - The group employed a total of 119 full-time employees as of June 30, 2024, down from 185 employees as of June 30, 2023, with total employee benefit expenses of approximately RMB 4.4 million for the six months ended June 30, 2024[62]. Compliance and Reporting - The company is committed to adhering to the revised Hong Kong Financial Reporting Standards, which took effect from January 1, 2024, ensuring compliance and transparency in financial reporting[17]. - The report will be available on the Hong Kong Stock Exchange website for at least 7 days from the date of publication[80]. - The report will also be published on the company's website www.saftower.cn[80]. - In case of any discrepancies between the Chinese and English versions of the report, the English version shall prevail[80].

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 89,327 thousand, a decrease from RMB 131,192 thousand in the same period of 2023, representing a decline of approximately 32%[6] - The gross profit for the same period was RMB 1,086 thousand, compared to RMB 228 thousand in 2023, indicating a significant improvement in gross profit margin[6] - The company incurred a loss of RMB 11,220 thousand for the six months ended June 30, 2024, slightly better than the loss of RMB 11,385 thousand in the prior year[6] - The basic and diluted loss per share for the period was RMB 1.22, compared to RMB 1.09 in the previous year, reflecting a worsening in per-share performance[7] - The total comprehensive loss for the period was RMB 11,257 thousand, compared to RMB 11,497 thousand in the prior year, showing a slight improvement[6] - The company reported a loss attributable to owners of approximately RMB 11,257,000 for the six months ended June 30, 2024, compared to a loss of RMB 10,044,000 for the same period in 2023[32] Revenue and Income - The company reported other income of RMB 4,276 thousand, up from RMB 1,153 thousand in the previous year, indicating growth in additional revenue streams[6] - Other income for the six months ended June 30, 2024, totaled RMB 4,276,000, significantly increasing from RMB 1,153,000 in the same period of 2023, marking an increase of approximately 270.5%[25] - The company received government grants totaling RMB 1,943,000 during the six months ended June 30, 2024, compared to RMB 1,220,000 in the same period of 2023, representing an increase of approximately 59.3%[25] Expenses and Costs - The administrative and other expenses increased to RMB 14,893 thousand from RMB 10,187 thousand, reflecting higher operational costs[6] - The financing costs for the period were RMB 2,844 thousand, compared to RMB 3,800 thousand in the previous year, showing a decrease in financing expenses[6] - Selling and distribution expenses decreased by RMB 0.6 million or 71.4% for the six months ended June 30, 2024, due to reduced sales activities during the period[50] - The cost of inventory recognized as an expense for the six months ended June 30, 2024, was RMB 88,241,000, compared to RMB 130,628,000 in the same period of 2023, indicating a reduction of approximately 32.5%[28] Assets and Liabilities - As of June 30, 2024, total assets decreased to RMB 325,312 thousand from RMB 358,849 thousand as of December 31, 2023, representing a decline of approximately 9.3%[8] - Non-current liabilities increased to RMB 57,738 thousand as of June 30, 2024, from RMB 24,626 thousand as of December 31, 2023, marking an increase of approximately 134%[9] - The company's total equity decreased to RMB 59,280 thousand as of June 30, 2024, down from RMB 70,537 thousand as of December 31, 2023, reflecting a decline of about 16%[9] - Current liabilities decreased to RMB 208,294 thousand as of June 30, 2024, from RMB 263,686 thousand as of December 31, 2023, a reduction of about 21%[8] - The net current liabilities improved to (RMB 19,294 thousand) as of June 30, 2024, compared to (RMB 44,206 thousand) as of December 31, 2023, indicating a positive shift[8] Cash Flow - The company reported a net cash inflow from operating activities of RMB 9,178 thousand for the six months ended June 30, 2024, compared to RMB 358 thousand for the same period in 2023, indicating a significant improvement[11] - Cash and cash equivalents at the end of the period were RMB 343 thousand, a decrease from RMB 1,864 thousand at the end of the previous period, representing a decline of approximately 81.7%[11] - As of June 30, 2024, the company's cash and cash equivalents amounted to approximately RMB 0.3 million, down from RMB 1.4 million as of December 31, 2023[55] Market and Growth Strategies - The company aims to enhance its market presence and explore new strategies for growth, although specific future projections were not detailed in the report[6] - The demand for wires and cables is expected to grow due to increasing applications in industries such as automotive, construction, and telecommunications, driven by urbanization and infrastructure development[44] - The Chinese government's ongoing investment in infrastructure is anticipated to be a significant driver for the wire and cable industry, with projects related to power grids and 5G networks requiring substantial amounts of these products[44] - The establishment of a new subsidiary, Fuzhou Dasong Internet of Things Technology Co., Ltd., aims to develop software and technology services, enhancing the company's market capabilities in the non-automotive charging sector[45] - The introduction of renewable energy technologies is expected to provide substantial growth opportunities for wire and cable manufacturers as the demand for clean energy solutions increases[44] Shareholder and Governance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15 and has complied with its provisions, except for the separation of the roles of Chairman and CEO, which are held by the same individual, Mr. Dang Fei[64] - The company has a significant shareholder structure, with Red Fly Investment Limited holding 38.18% of the shares, controlled by Mr. Dang Fei and Mr. Dang Jun[70] - The board consists of experienced members, including three independent non-executive directors, ensuring a balance of power and authority[64] - The company has appointed a compliance advisor in accordance with GEM Listing Rules, and as of June 30, 2024, there are no undisclosed interests related to the compliance advisor[66] Compliance and Regulations - The company has not adopted any new accounting standards that would have a significant impact on its financial performance for the current period[16] - The company has not made any changes to its risk management policies since December 31, 2023[18] - The company has fully complied with the trading code for directors as per GEM Listing Rules during the reporting period[65] - There are no reported insider trading violations among the directors or employees as of the reporting date[65] Other Notable Information - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024[31] - The company has not disclosed any new product developments or market expansion strategies in the provided documents[64][66] - A share consolidation will occur on July 10, 2024, merging every ten shares of HKD 0.01 each into one share of HKD 0.1[75] - The audit committee, established on June 10, 2020, consists of three independent non-executive directors and has reviewed the unaudited financial statements for the six months ending June 30, 2024[77] - The unaudited consolidated financial statements comply with applicable accounting standards and GEM listing rules, ensuring adequate disclosure[77]

Financial Performance - The company reported a loss of RMB 60.6 million for the year ended December 31, 2023, compared to a loss of RMB 25.6 million in the previous year, primarily due to impairment of property, plant, and equipment, as well as trade receivables [8]. - For the fiscal year ending December 31, 2023, the company reported revenue of RMB 244.7 million, a decrease of approximately 67.7% compared to RMB 757.9 million in 2022 [12]. - The company recorded a pre-tax loss of RMB 56.8 million in 2023, compared to a loss of RMB 32.0 million in 2022 [12]. - The total assets decreased from RMB 392.6 million in 2022 to RMB 358.8 million in 2023, reflecting a decline of about 8.6% [13]. - Total equity dropped significantly from RMB 135.5 million in 2022 to RMB 70.5 million in 2023, a decrease of approximately 48% [13]. - The group recorded a loss attributable to equity holders of approximately RMB 60.2 million for the year ended December 31, 2023, compared to a loss of approximately RMB 21.5 million for the same period in 2022 [28]. Operational Efficiency and Market Strategy - The company remains cautiously optimistic about its future prospects, noting positive signs of global economic recovery that may provide opportunities for rebound and restoration of profitability [9]. - Efforts will continue to improve operational efficiency, explore new markets, and diversify the product portfolio to meet changing customer demands [9]. - The company is focusing on expanding its domestic market presence and enhancing its product offerings to meet evolving customer demands [18]. - Operational efficiency improvements are being targeted through process streamlining and investments in automation and digitalization [18]. - The company is committed to driving growth, enhancing financial performance, and providing long-term value to shareholders despite disappointing financial results in 2023 [9]. Risk Management and Governance - Strengthened risk management processes and tightened credit controls have been implemented to reduce the likelihood of similar impairments occurring in the future [9]. - The board of directors confirmed adherence to high standards of corporate governance and compliance with GEM listing rules [43]. - The board consists of a mix of executive and independent non-executive directors, ensuring a strong governance structure [49]. - The company has mechanisms in place to ensure the independence of its board members, with at least three independent non-executive directors [49]. - The Audit Committee held four meetings during the fiscal year ending December 31, 2023, and reviewed the annual performance and report, confirming compliance with applicable accounting standards and sufficient disclosures [58]. Employee and Workforce Management - The dedicated employee team is recognized as key to maintaining resilience during challenging times, with their commitment and adaptability contributing to overcoming difficulties [9]. - As of December 31, 2023, the group employed a total of 116 full-time employees, down from 183 in 2022 [40]. - The overall employee turnover rate for the group was 66% in 2023, up from 45% in 2022 [161]. - The company emphasizes equal employment opportunities and prohibits discrimination based on gender, race, and other factors [166]. - The number of trained employees in 2023 was 64, representing approximately 55% of the total workforce, a decrease from 134 employees (73%) in 2022 [176]. Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes its commitment to sustainable development, integrating environmental, social, and governance (ESG) considerations into its business strategy [105]. - An ESG working group has been established to assist the board in managing ESG-related matters and to report on progress at least once a year [107]. - The company has set environmental goals focusing on emissions reduction, waste management, and resource conservation, which are reviewed annually by the board [108]. - Major ESG issues identified include emissions, resource consumption, climate change, employee health and safety, and supply chain management [125]. - The company aims to enhance its ESG performance in response to stakeholder expectations and the Chinese government's carbon neutrality goals [108]. Financial Management and Cost Control - The group's cost of sales decreased from RMB 773.5 million for the year ended December 31, 2022, to RMB 244.3 million for the year ended December 31, 2023, a reduction of RMB 529.2 million or 68.4% [20]. - Selling and distribution expenses decreased by RMB 3.7 million or 66.1% for the year ended December 31, 2023, following the downward trend in revenue [24]. - Administrative and other expenses increased by RMB 20.4 million or 92.7% to RMB 42.4 million for the year ended December 31, 2023, mainly due to losses recognized from the sale of properties, plants, and equipment [25]. - Financing costs decreased from approximately RMB 10.7 million for the year ended December 31, 2022, to about RMB 7.3 million for the year ended December 31, 2023, due to a reduction in average borrowings [26]. Corporate Social Responsibility - The company focuses on community investment as part of its corporate citizenship, although it did not participate in community activities during the reporting period due to resource allocation towards business development [199]. - The company is committed to providing anti-corruption training materials to directors and employees at least once a year to enhance their understanding of integrity and business ethics [197]. - The company has established a whistleblowing policy to enhance stakeholder understanding of reporting processes related to anti-corruption and fraud, ensuring protection for whistleblowers [198]. - The company has implemented measures to ensure compliance with environmental laws, including treating wastewater according to national standards before discharge [149]. Product Development and Quality Control - The company has developed two patents for special wire and cable products, enhancing its product safety and environmental friendliness [186]. - The company has implemented a customer satisfaction survey process, including direct communication and feedback collection from customers [191]. - The company has established a complaint handling procedure to address customer complaints and improve service quality [192]. - The company has developed an effective quality control system to ensure compliance with customer, regulatory, and legal requirements for its products [186].