香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，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告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） 截至二零二三年九月三十日止九個月第三季度業績公告 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」）欣然 公佈本公司及其附屬公司截至二零二三年九月三十日止九個月的未經審核綜 合業績。本公告載列本公司截至二零二三年九月三十日止九個月之第三季度報 告（「第三季度報告」）全文，並符合香港聯合交易所有限公司GEM證券上市規則 （「GEM上市規則」）內有關第三季度業績初步公告附載資料的相關規定。第三 季度報告之印刷版本將遵照GEM上市規則的規定，於實際可行情況下盡快寄發 予本公司股東，並於本公司網站www.saftower.cn及聯交所網站www.hkexnews.hk 刊載。 承董事會命 中國蜀塔國際控 ...

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） 有關截至二零二二年十二月三十一日止年度之年度報告之補充公佈 茲提述中國蜀塔國際控股集團有限公司（「本公司」）於二零二三年三月三十一 日刊發截至二零二二年十二月三十一日止年度的年度報告（「年報」）。除另有 界定者外，本公佈所用詞彙與年報所界定者具有相同涵義。 本公佈乃旨在為年報提供補充資料而作出。 有關應收貸款的補充資料 除年報綜合財務報表附註22所披露的資料外，董事會謹此提供有關人民幣34.5 百萬元貸款（「應收貸款」）的額外資料。 應收貸款涉及兩筆無抵押貸款： (1) 前哨貸款 根據廣元蜀塔電纜有限公司（「廣元蜀塔」，本公司的一間間接全資附屬公司） ...

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of RMB 131,192,000, a decrease of 62.5% compared to RMB 349,490,000 for the same period in 2022[8] - The cost of sales for the same period was RMB 130,964,000, resulting in a gross profit of RMB 228,000, compared to a gross loss of RMB 5,978,000 in 2022[8] - The company incurred a loss before tax of RMB 13,491,000, slightly improved from a loss of RMB 14,523,000 in the previous year[8] - The net loss for the period was RMB 11,385,000, compared to RMB 12,984,000 in the same period last year, indicating a reduction in losses by approximately 12.3%[8] - Basic and diluted loss per share for the period was RMB 1.09, compared to RMB 1.31 for the same period in 2022[10] - Other income for the six months was RMB 1,153,000, down from RMB 12,763,000 in the previous year, reflecting a decline of 91%[8] - The company reported a total comprehensive loss of RMB 11,497,000 for the period, compared to RMB 12,954,000 in the same period last year[10] - The company reported a net loss of RMB 10,044,000 for the first half of 2023, compared to a loss of RMB 12,013,000 in the same period of 2022, indicating an improvement of approximately 16.4%[15] - The company reported a loss before income tax of approximately RMB 10,044,000 for the six months ended June 30, 2023, compared to a loss of RMB 12,013,000 for the same period in 2022, indicating a reduction in losses by about 8.1%[52] - The company recorded a loss attributable to owners of approximately RMB 10.0 million for the six months ended June 30, 2023, compared to a loss of RMB 12.0 million for the same period in 2022[85] Revenue Breakdown - For the six months ended June 30, 2023, the revenue from wire and cable production and sales was RMB 129,019 thousand, compared to RMB 113,224 thousand for the same period in 2022, representing a growth of approximately 14%[36] - The revenue from aluminum product sales for the six months ended June 30, 2023, was RMB 2,173 thousand, a significant decrease from RMB 236,266 thousand in the same period of 2022[36] - Total revenue for the six months ended June 30, 2023, was RMB 131,192 thousand, down from RMB 349,490 thousand in the same period of 2022, indicating a decline of approximately 62%[36] - Major customers contributing over 10% of total revenue included Customer A with RMB 48,070 thousand and Customer B with RMB 33,262 thousand for the six months ended June 30, 2023[33] - The revenue from aluminum wire and cable was RMB 57,678,000, down from RMB 66,178,000 in 2022, reflecting a decrease of approximately 13.5%[74] Expenses and Costs - Administrative and other expenses totaled RMB 10,187,000, remaining relatively stable compared to RMB 10,242,000 in 2022[8] - Financing costs for the six months ended June 30, 2023, were RMB 3,800 thousand, a decrease from RMB 7,983 thousand in the same period of 2022, reflecting a reduction of approximately 52%[42] - The cost of goods sold for the six months ended June 30, 2023, was RMB 130,628,000, down 63.3% from RMB 355,468,000 in the same period of 2022[45] - Selling and distribution expenses decreased by RMB 2.4 million or 72.7% for the six months ended June 30, 2023, due to reduced sales activities of aluminum rolled products[81] - Research and development costs (excluding amortization) were RMB 86,000 for the six months ended June 30, 2023, a decrease of 81.1% compared to RMB 455,000 in the same period of 2022[45] Assets and Liabilities - As of June 30, 2023, total assets decreased to RMB 348,848,000 from RMB 392,472,000 as of December 31, 2022, representing a decline of approximately 11.1%[12] - Non-current assets decreased from RMB 163,379,000 to RMB 155,471,000, a reduction of about 4.8%[12] - The company’s total liabilities decreased from RMB 251,703,000 to RMB 220,487,000, a decline of approximately 12.4%[12] - The company’s equity attributable to owners decreased from RMB 111,806,000 to RMB 101,650,000, a decline of approximately 9.1%[13] - The company’s borrowings increased to RMB 94,349,000 from RMB 113,702,000, a decrease of about 17%[12] - The company’s trade payables as of June 30, 2023, were RMB 59,540,000, an increase from RMB 53,900,000 as of December 31, 2022, reflecting an increase of 10.4%[58] Cash Flow - Cash and cash equivalents increased to RMB 1,864,000 from RMB 703,000, reflecting a growth of approximately 165.5%[17] - The net cash used in operating activities was RMB 358,000, a significant decrease from RMB 15,569,000 in the previous year[17] - As of June 30, 2023, the company's cash and cash equivalents amounted to approximately RMB 1.9 million, an increase from RMB 0.7 million as of December 31, 2022[87] Future Outlook - The company plans to continue its focus on the production and sales of wire and cable products, as well as aluminum products, in the Chinese market[18] - The company anticipates continued growth in demand for wires and cables driven by urbanization, infrastructure development, and technological advancements[72] - The Chinese government's ongoing investment in infrastructure is expected to be a significant driver for the industry, particularly in projects related to the power grid and 5G networks[72] - The company is focusing on domestic market development, which may help reduce reliance on external factors such as trade tensions and global market fluctuations[73] Corporate Governance - The company 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[98] - The company has appointed a compliance advisor in accordance with GEM Listing Rules, and as of June 30, 2023, there are no undisclosed interests related to the compliance advisor[101] - The board of directors consists of experienced members, including three independent non-executive directors, ensuring a balance of power and authority[98] - The company has confirmed that there are no competing interests from its controlling shareholders or directors as of June 30, 2023[108] - The company has fully complied with the trading code for directors during the six-month period ending June 30, 2023[100] Shareholder Information - As of June 30, 2023, Mr. Dang Fei holds 351,280,000 shares, representing 38.18% of the company's equity, while Mr. Wang Xiaozhong holds 99,760,000 shares, representing 10.84%[103] - 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[106] - The company has not identified any other individuals with interests in shares that require disclosure under the Securities and Futures Ordinance as of June 30, 2023[107] Compliance and Audit - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2023, and found them to comply with applicable accounting standards and GEM listing rules[112] - The company has maintained compliance with the necessary trading standards and regulations throughout the reporting period[100] Miscellaneous - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[51] - The group did not adopt any new accounting standards that had a significant impact on the financial performance or position during the reporting period[25] - The group has not made any changes to its risk management policies since December 31, 2022[28] - The group operates primarily in China, with all revenue and non-current assets located in the region, indicating a focused market strategy[31] - The company has a stock option plan that allows for the grant of up to 80,000,000 shares as of January 1, 2023, and June 30, 2023, but no options have been granted, exercised, canceled, or lapsed since the listing date[109] - There have been no significant events requiring disclosure from June 30, 2023, to the report date[110]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，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告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） 截至二零二三年六月三十日止六個月中期業績公告 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」）欣然 公佈本公司及其附屬公司截至二零二三年六月三十日止六個月的未經審核綜 合業績。本公告載列本公司截至二零二三年六月三十日止六個月之中期報告 （「二零二三年中期報告」）全文，並符合香港聯合交易所有限公司GEM證券上 市規則（「GEM上市規則」）內有關中期業績初步公告附載資料的相關規定。 二零二三年中期報告之印刷版本將遵照GEM上市規則的規定，於實際可行情 況下盡快寄發予本公司股東，並於本公司網站www.saftower.cn 及聯交所網站 www.hkexnews.hk 刊載。 承董事會命 中國蜀塔國 ...

Financial Performance - For the first quarter of 2023, the company reported revenue of RMB 75,004,000, a decrease of 47.3% compared to RMB 142,115,000 in the same period of 2022[7] - The cost of sales for the first quarter was RMB 75,122,000, resulting in a gross loss of RMB 118,000, compared to a gross profit of RMB 71,000 in Q1 2022[7] - The net loss for the period was RMB 5,446,000, which is an increase from the net loss of RMB 4,353,000 in the first quarter of 2022[7] - Basic and diluted loss per share for the period was RMB 0.50, compared to RMB 0.49 in the same quarter of 2022[7] - Total comprehensive loss for the period amounted to RMB 5,446,000, compared to RMB 4,320,000 in Q1 2022[7] - Revenue from the production and sales of wires and cables was RMB 24,761 thousand, down 39.2% from RMB 40,680 thousand in the previous year[18] - Revenue from the production and sales of aluminum products was RMB 50,243 thousand, a decline of 50.6% compared to RMB 101,435 thousand in the same period last year[18] - Other income for the three months ended March 31, 2023, was RMB 1,078 thousand, significantly lower than RMB 5,708 thousand in the previous year, representing a decrease of 81.1%[21] - The company reported a loss before tax of RMB 1,439 thousand for the three months ended March 31, 2023, compared to a loss of RMB 369 thousand in the same period of 2022[27] - The company reported a loss attributable to owners of approximately RMB 4,577,000, compared to a loss of RMB 4,533,000 for the same period in 2022[31] - The company’s revenue for the three months ended March 31, 2023, was approximately RMB 75.0 million, a decrease of about 47.2% compared to RMB 142.1 million in the same period of 2022[41] Costs and Expenses - The company incurred financing costs of RMB 1,812,000, down from RMB 2,674,000 in the previous year, indicating a reduction of 32.2%[7] - Financing costs for the three months ended March 31, 2023, were RMB 1,812 thousand, down 35.0% from RMB 2,798 thousand in the same period of 2022[22] - The cost of goods sold for the three months ended March 31, 2023, was RMB 75,122 thousand, a decrease of 47.3% from RMB 142,044 thousand in the previous year[24] - Selling and distribution expenses decreased by approximately RMB 994,000 or 72.2% in 2023, aligning with a reduction in transportation frequency[47] - Administrative and other expenses decreased from RMB 6.5 million for the three months ended March 31, 2022, to RMB 5.7 million for the same period in 2023, a reduction of RMB 800,000 or 12.4%[48] Equity and Shareholder Information - The company's total equity as of March 31, 2023, was RMB 130,063,000, down from RMB 161,091,000 a year earlier[8] - The company’s major shareholder, Red Fly Investment Limited, holds 351,280,000 shares, representing 38.18% of the total issued share capital[62] - Wang Xiaozhong holds 99,760,000 shares, representing 10.84% of the total issued share capital[62] Corporate Governance and Compliance - The company is listed on the GEM of the Hong Kong Stock Exchange, which is known for higher investment risks associated with smaller companies[3] - The board believes that the separation of roles between the chairman and CEO is appropriate for maximizing the company's interests, despite the current structure where the same individual holds both positions[58] - The company has adopted the GEM Listing Rules as its code of conduct for securities trading by directors, with all directors complying with the regulations during the reporting period[60] - The audit committee, established on June 10, 2020, reviewed the unaudited consolidated financial statements for the three months ending March 31, 2023, and found them compliant with applicable accounting standards and GEM listing rules[72] Future Outlook - The company continues to focus on the production and sales of wires and cables, as well as aluminum products in mainland China[9] - The company is optimistic about future financial performance improvements, driven by increasing demand in sectors such as automotive, construction, and telecommunications[35] - The company has not provided specific guidance for future performance or market expansion strategies in the current report[7] Other Information - The company did not incur any research and development costs for the three months ended March 31, 2023, compared to RMB 248 thousand in the previous year[24] - The company received government grants totaling RMB 182 thousand for the three months ended March 31, 2023, down from RMB 5,194 thousand in the previous year[21] - The depreciation of property, plant, and equipment for the three months ended March 31, 2023, was RMB 2,126 thousand, a decrease from RMB 2,425 thousand in the same period last year[24] - The deferred tax items increased, resulting in tax credits rising from approximately RMB 369,000 for the three months ended March 31, 2022, to approximately RMB 1.4 million for the same period in 2023[50] - There were no significant contingent liabilities as of March 31, 2023[52] - The company did not hold any significant investments or engage in major acquisitions or disposals of subsidiaries and associates during the three months ended March 31, 2023[54] - No dividends were declared for the three months ended March 31, 2023, consistent with the previous year[56] - The company and its subsidiaries did not purchase, sell, or redeem any shares during the three months ended March 31, 2023[57] - As of March 31, 2023, the company confirmed no major events requiring disclosure occurred after this date[70] - The company has not granted, exercised, canceled, or allowed any stock options under the stock option plan since its adoption on June 10, 2020[69]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，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告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） 截至二零二三年三月三十一日止三個月 第一季度業績公告 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」）欣然 公佈本公司及其附屬公司截至二零二三年三月三十一日止三個月的未經審核 綜合業績。本公告載列本公司截至二零二三年三月三十一日止三個月之第一 季度報告（「第一季度報告」）全文，並符合香港聯合交易所有限公司GEM證券 上市規則（「GEM上市規則」）內有關第一季度業績初步公告附載資料的相關 規定。第一季度報告之印刷版本將遵照GEM上市規則的規定，於實際可行情 況下盡快寄發予本公司股東，並於本公司網站www.saftower.cn及聯交所網站 www.hkexnews.hk刊載。 承董事會命 中國蜀 ...

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）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） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 年 度 業 績 公 佈 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」）欣然 公佈本公司及其附屬公司截至二零二二年十二月三十一日止年度的經審核綜 合財務業績。本公佈載列本公司二零二二年年度報告（「二零二二年年度報告」） 全文，並符合聯交所GEM證券上市規則（「GEM上市規則」）內有關年度業績初 步公佈資料的相關規定。二零二二年年度報告之印刷版本將適時寄發予本公 司股東，並於聯交所網站www.hkexnews.hk及本公司網站www.saftower.cn上可供 閱覽。 承董事會命 中國蜀塔國際控股集團有限公司 ...

Financial Performance - The total revenue for the year ended December 31, 2022, was RMB 757.9 million, an increase of 39.3% compared to RMB 544.4 million in 2021[9] - The company reported a pre-tax loss of RMB 32 million for 2022, slightly higher than the loss of RMB 30.6 million in 2021[9] - The net loss attributable to shareholders for the year was RMB 21.5 million, an improvement from a loss of RMB 25.2 million in the previous year[9] - For the year ended December 31, 2022, the company recorded a loss of approximately RMB 25.6 million[13] - The company's revenue for the year ended December 31, 2022, was approximately RMB 757.9 million, an increase of about 39.2% compared to RMB 544.4 million in 2021[19] - Sales costs increased from RMB 538.3 million in 2021 to RMB 773.5 million in 2022, representing an increase of RMB 235.1 million or 43.7%[20] - The gross loss for the year ended December 31, 2022, was RMB 15.6 million, with a gross margin of 2.1%, compared to a gross profit of approximately RMB 6.1 million and a gross margin of 1.1% in 2021[21] - Other income and gains increased from approximately RMB 15.0 million in 2021 to about RMB 24.8 million in 2022[23] - The company's sales and distribution expenses increased by RMB 1.1 million or 24.9% due to the expansion of market share for rolled aluminum wire[24] - Administrative and other expenses decreased by RMB 7.8 million or 26.1% to RMB 22.0 million for the year ended December 31, 2022[25] - Financing costs decreased from approximately RMB 11.7 million in 2021 to about RMB 10.7 million in 2022[26] - The company's tax credits increased from approximately RMB 4.1 million in 2021 to about RMB 6.4 million in 2022[27] - The net loss margin for the year was approximately 3.4%, an improvement from 4.9% in 2021[28] Assets and Equity - Total assets decreased to RMB 392.5 million in 2022 from RMB 469.8 million in 2021, reflecting a decline of 16.4%[10] - Total equity decreased to RMB 135.5 million in 2022 from RMB 161.1 million in 2021, a reduction of 16%[10] - The total equity attributable to owners of the company was approximately RMB 111.8 million as of December 31, 2022, compared to RMB 133.3 million in the previous year[31] - The debt-to-equity ratio as of December 31, 2022, was 97.0%, a decrease from 112.0% in 2021[31] Operational Challenges and Strategies - The company is facing challenges such as intensified competition, supply chain disruptions, and rising input costs, impacting operational performance[7] - The company is reviewing its operations and investing in technology to enhance efficiency and productivity for future growth[7] - The company aims to simplify its supply chain and improve operational efficiency to address the challenges faced in 2022[7] - The company remains committed to creating shareholder value and returning to a growth and profitability trajectory[7] Employee and Workforce - The company employed a total of 183 full-time employees as of December 31, 2022, down from 221 in the previous year[40] - The total employee benefit expenses for the year were approximately RMB 12.1 million, slightly down from RMB 12.2 million in the previous year[40] - The overall employee turnover rate for the reporting period was approximately 45%, up from 26% in 2021[162] - The male employee count was 136 (74%) in 2022, compared to 157 (71%) in 2021, while female employees decreased from 64 (29%) to 47 (26%) in the same period[159] - The company has established a competitive compensation system, ensuring fair and reasonable remuneration for employees[164] - The company emphasizes equal employment opportunities and prohibits discrimination based on gender, race, or other differences[167] - The total number of trained employees in 2022 was 134, representing approximately 73% of the total workforce, down from 93% in 2021[176] - The average training hours per employee increased to 51.78 hours in 2022, compared to 24.56 hours in 2021[176] Governance and Compliance - The board consists of at least three independent non-executive directors, ensuring that independent opinions are available for good corporate governance[48] - The audit committee held four meetings during the year ended December 31, 2022, reviewing the annual financial statements and quarterly reports[57] - The company has established anti-discrimination and equal opportunity policies to ensure fair employment practices[74] - The board has established effective internal control systems to manage risks and ensure compliance with applicable laws and regulations[89] - The company has a shareholder communication policy to facilitate engagement between shareholders and the board[96] - The company has established anti-corruption policies and provides training to directors and employees at least once a year to enhance their understanding of integrity and business ethics[198] Environmental, Social, and Governance (ESG) Initiatives - The company emphasizes sustainable development as a core part of its business strategy, focusing on environmental, social, and governance (ESG) initiatives[104] - The ESG working group, composed of senior management and employees from various departments, reports to the board at least once a year and is tasked with implementing ESG measures and assessing related risks[106] - The group has set environmental goals covering emissions reduction, waste management, and resource conservation, which are reviewed annually by the board[107] - The report adheres to the ESG reporting guidelines set by the Hong Kong Stock Exchange, ensuring the principles of materiality, quantification, balance, and consistency are applied[110] - The company is committed to aligning with national policies aiming for carbon peak by 2030 and carbon neutrality by 2060, actively participating in government emission reduction plans[129] Product and Market - The company operates in the wire and cable manufacturing sector, with production facilities located in Sichuan Province, China[104] - The product portfolio includes finished and semi-finished wires and cables, aluminum products, and other related items[104] - The company has obtained 29 registered trademarks in mainland China and Hong Kong, and 61 important patents related to wire and cable products in China as of December 31, 2022[194] - The company has not encountered any significant issues regarding the supply of raw materials, maintaining stable relationships with suppliers[183] Safety and Health - The company is committed to providing a safe and healthy work environment, adhering to safety regulations and conducting regular safety training[170] - The company has received ISO 45001:2018 certification for occupational health and safety management systems[173] - The company conducts regular safety inspections and training to ensure compliance with safety regulations and enhance employee safety awareness[173] Community Engagement - The company donated RMB 10,000 to the Baoxing County Charity Association to support earthquake relief efforts during the reporting period[200]

香港交易及結算所有限公司及香港聯合交易所有限公司（「聯交所」）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） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 之 年 度 業 績 公 佈 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」）欣然 公佈本公司及其附屬公司截至二零二二年十二月三十一日止年度的經審核綜 合財務業績。本公佈載列本公司二零二二年年度報告（「二零二二年年度報告」） 全文，並符合聯交所GEM證券上市規則（「GEM上市規則」）內有關年度業績初 步公佈資料的相關規定。二零二二年年度報告之印刷版本將適時寄發予本公 司股東，並於聯交所網站www.hkexnews.hk及本公司網站www.saftower.cn上可供 閱覽。 承董事會命 中國蜀塔國際控股集團有限公司 ...

Financial Performance - For the nine months ended September 30, 2022, the company's revenue was RMB 470,361,000, an increase of 21.6% compared to RMB 386,823,000 for the same period in 2021[6] - The cost of sales for the same period was RMB 483,254,000, resulting in a gross loss of RMB 12,893,000, compared to a gross profit of RMB 7,065,000 in 2021[6] - The company reported a net loss of RMB 24,868,000 for the nine months ended September 30, 2022, compared to a net loss of RMB 6,947,000 for the same period in 2021[6] - The basic and diluted loss per share for the nine months was RMB 2.28, compared to RMB 0.76 for the same period in 2021[8] - The total comprehensive loss for the period was RMB 24,938,000, compared to RMB 7,062,000 in the same period last year[8] - The company incurred a loss of RMB 21,006,000 during the nine months ended September 30, 2022, compared to a loss of RMB 6,451,000 for the same period in 2021, reflecting increased operational challenges[10] - The group reported a loss attributable to owners of the company of RMB 21,062,000 for the nine months ended September 30, 2022, compared to a loss of RMB 6,451,000 for the same period in 2021[34] Revenue and Sales - The revenue from wire and cable production and sales was RMB 171,857,000, while aluminum product sales generated RMB 298,504,000, indicating strong performance in both segments[21] - The group's revenue for the nine months ended September 30, 2022, was approximately RMB 470.4 million, an increase of about 21.6% compared to the same period in 2021[43] Costs and Expenses - Financing costs increased to RMB 10,527,000 from RMB 6,601,000, representing a rise of 59.5% year-on-year[6] - The company incurred administrative and other expenses of RMB 16,201,000, slightly up from RMB 15,957,000 in the previous year[6] - Sales costs increased from RMB 379.8 million for the nine months ended September 30, 2021, to RMB 483.3 million for the same period in 2022, an increase of RMB 103.5 million or 27.3%[44] - The cost of inventory recognized as an expense for the nine months ended September 30, 2022, was RMB 483,254,000, up 27% from RMB 379,758,000 in the same period of 2021[27] Other Income and Gains - Other income and gains for the nine months were RMB 15,422,000, up from RMB 9,349,000 in the previous year, reflecting a growth of 65.5%[6] - Other income and gains totaled RMB 15,422,000 for the nine months ended September 30, 2022, compared to RMB 9,349,000 in the previous year, driven by government grants and interest income[23] - Other income and gains increased from approximately RMB 9.3 million for the nine months ended September 30, 2021, to about RMB 15.4 million for the same period in 2022[47] Shareholder Information - As of September 30, 2022, the company’s major shareholder, Red Fly Investment Limited, holds 351,280,000 shares, representing 38.18% of the total shares[64] - The company’s director, Mr. Dang Fei, holds 351,280,000 shares through controlled entities, equating to 38.18% ownership[65] - Mr. Wang Xiaozhong holds 99,760,000 shares, which is 10.84% of the total shares[64] Governance and Compliance - The company has complied with the corporate governance code as per GEM Listing Rules Appendix 15, except for the separation of roles between the Chairman and CEO, which is deemed appropriate by the board[59] - The company has appointed a compliance advisor in accordance with GEM Listing Rules, ensuring adherence to regulatory requirements[62] - The company has maintained full compliance with the trading code for directors, with no reported breaches[61] - The board consists of experienced members, including three independent non-executive directors, ensuring a balance of power and authority[59] Future Outlook and Strategies - The company aims to enhance its market presence and is exploring new strategies for expansion, although specific details were not disclosed in the report[6] - The management is focused on improving operational efficiency and reducing costs to mitigate losses in future quarters[6] - The group is actively seeking opportunities to expand its influence in Southwest China and reduce regional concentration, potentially including expansion into other segments of the aluminum industry[38] - The group is evaluating various opportunities for business expansion and will notify investors and shareholders upon any actionable opportunities[38] Production and Operations - The company experienced a temporary production halt due to energy shortages caused by severe heatwaves and droughts in Central and Western China during July to September 2022[45] - The company’s operational focus remains on the production and sales of wires, cables, and aluminum products, with no separate reporting segments due to resource integration[17] - The company’s main operational base is located in Guangyuan, Sichuan Province, China, emphasizing its regional manufacturing capabilities[12] Dividends and Investments - The group has not declared an interim dividend for the nine months ended September 30, 2022[33] - The company did not declare any dividends for the nine months ended September 30, 2022, consistent with the previous year[57] - There were no significant investments, acquisitions, or disposals of subsidiaries or joint ventures during the nine months ended September 30, 2022[55] Accounting and Audit - The company's financial statements for the nine months ending September 30, 2022, were not audited but were reviewed by the audit committee, confirming compliance with applicable accounting standards and GEM listing rules[74] - The audit committee was established on June 10, 2020, consisting of three independent non-executive directors, with Mr. Chen Aifa serving as the chairman[74] Market Conditions - The average price of aluminum increased significantly during the period, impacting material costs, with the London Metal Exchange reporting an international aluminum price of approximately USD 2,800 per ton at the end of 2021, peaking at about USD 4,000 per ton in March 2022[44] - The group anticipates a gradual decline in raw material costs, benefiting from a 30% VAT refund and subsidies from the Ya'an local government[38] Miscellaneous - The company is currently evaluating the impact of new accounting standards but has not identified any significant financial impact on its operations[16] - The company has not disclosed any new product developments or market expansion strategies in the current report[68] - No significant events requiring disclosure occurred after September 30, 2022, up to the report date[72] - The report will be available on the Hong Kong Stock Exchange website and the company's website for at least 7 days from the publication date[76]