Group 1 - The Hang Seng Index rose by 2.4% to close at 21,417.4 points on April 14 [1] - China Hongguang's stock price increased by 17.65% to HKD 0.26 per share, with a trading volume of 11.508 million shares and a turnover of HKD 2.4737 million, showing a volatility of 29.86% [1] - Over the past month, China Hongguang has experienced a cumulative decline of 13.33%, and a year-to-date decline of 35%, underperforming the Hang Seng Index by 4.26% [1] Group 2 - For the fiscal year ending December 31, 2024, China Hongguang reported total revenue of HKD 242 million, representing a year-on-year growth of 11.54% [1] - The company recorded a net profit attributable to shareholders of HKD 21.141 million, a decrease of 40.83% year-on-year, with a gross margin of 26.06% and a debt-to-asset ratio of 27.08% [1] - Currently, there are no institutional investment ratings for China Hongguang [1] Group 3 - China Hongguang primarily manufactures and sells architectural glass products in South China, including energy-saving safety glass and smart glass products [2] - The company offers two main categories of products: (i) energy-saving safety glass products, such as coated glass, insulated glass, laminated glass, and tempered glass; and (ii) smart glass products, specifically dimmable glass [2] - The company's products are used in various construction structures, including curtain wall installations and internal partitions, and can be further processed into optical lenses and screen protectors [2]

Business Strategy and Market Position - The company aims to enhance its market position in the construction glass industry and expand its domestic market share to seize future growth opportunities[12]. - The company plans to continuously seek acquisition or investment opportunities to enhance its risk resilience and drive new growth momentum[13]. - The company is committed to leveraging the substantial development potential of the construction glass industry and related sectors[12]. - The company will maintain a diversified product mix to meet different customer needs and specifications[15]. Product and Revenue Overview - The revenue is generated from two main product types: energy-saving safety glass products and smart glass products[17]. - The product portfolio includes coated glass, insulated glass, laminated glass, tempered glass, and smart glass, which helps improve profitability and adapt to market trends[15]. - Total revenue increased by 11.54% from RMB 217,142 thousand in 2023 to RMB 242,203 thousand in 2024, primarily due to growth in smart glass product sales[18]. - Revenue from energy-saving safety glass products was RMB 219,979 thousand, accounting for 90.82% of total revenue, while smart glass product revenue rose to RMB 22,224 thousand from RMB 1,057 thousand[18]. Financial Performance - Gross profit decreased from RMB 63,763 thousand in 2023 to RMB 63,116 thousand in 2024, with a gross margin of 26.1% compared to 29.4% in the previous year[19]. - Net profit after tax decreased by approximately 40.8% from RMB 35,728 thousand in 2023 to RMB 21,141 thousand in 2024, mainly due to increased expenses[27]. - Basic earnings per share for 2024 was RMB 0.049, compared to RMB 0.082 in 2023, a decrease of 40.2%[195]. Expenses and Cost Management - Other net income increased significantly from RMB 2,067 thousand in 2023 to RMB 6,185 thousand in 2024, mainly due to government subsidies rising from RMB 1,717 thousand to RMB 5,813 thousand[20]. - Selling and marketing expenses rose from RMB 500 thousand in 2023 to RMB 563 thousand in 2024, attributed to increased marketing service fees[22]. - General and administrative expenses surged from RMB 21,381 thousand in 2023 to RMB 40,987 thousand in 2024, primarily due to listing costs and increased impairment losses[23]. Corporate Governance - The board of directors believes that sound corporate governance practices are essential for the sustainable development and protection of the company's interests and assets[55]. - The company has adopted the GEM Listing Rules and has complied with all applicable provisions of the corporate governance code[56]. - The board is responsible for maintaining proper accounting records to oversee and accurately disclose the financial position of the group[62]. - The company has appointed at least three independent non-executive directors, with at least one possessing appropriate professional qualifications or accounting expertise[60]. Risk Management and Compliance - The company has established a risk management system to identify and assess operational risks, with strategies in place for risk management[93]. - The company has implemented a whistleblowing policy to encourage employees to report any misconduct related to financial reporting and compliance[90]. - The board is responsible for maintaining effective risk management and internal control systems, with annual reviews conducted[95]. Shareholder Communication and Dividends - The company has implemented a shareholder communication policy to ensure effective communication with shareholders and stakeholders[105]. - The board does not recommend the payment of a final dividend for the year ending December 31, 2024, consistent with the previous year[117]. Employee and Gender Diversity - The company maintains a board composed of three female and three male directors, aiming to achieve gender equality by the end of 2025[85]. - As of December 31, 2024, the company has 64 employees, with 43 males and 21 females, indicating a satisfactory level of gender diversity[85]. Future Outlook - The company expects the economy in mainland China to rebound and restore robust growth in the coming years[13]. - The company is considering and recommending the board to approve the audited consolidated financial performance for the year ending December 31, 2023[75].

Company Overview - China Hongguang Holdings Limited aims to enhance its market position in the construction glass industry and expand domestic market share to seize future growth opportunities[17]. - The company was listed on the GEM of the Hong Kong Stock Exchange on January 13, 2020, marking a significant milestone in its development[17]. - The funds raised from the public offering and placement of shares will drive the future development of China Hongguang[17]. Financial Performance - Total revenue increased by 11.54% from RMB 217,142 thousand in 2023 to RMB 242,203 thousand in 2024, primarily due to growth in sales of smart glass products[23]. - Revenue from energy-saving safety glass products was RMB 219,979 thousand, accounting for 90.82% of total revenue in 2024, compared to 99.5% in 2023[23]. - Gross profit decreased from RMB 63,763 thousand in 2023 to RMB 63,116 thousand in 2024, with a gross margin of 26.1% in 2024, down from 29.4% in 2023[24]. - Net profit after tax decreased by approximately 40.8% from RMB 35,728 thousand in 2023 to RMB 21,141 thousand in 2024, primarily due to increased expenses[32]. - Total sales cost increased from RMB 153,379 thousand in 2023 to RMB 179,087 thousand in 2024[26]. - General and administrative expenses surged from RMB 21,381 thousand in 2023 to RMB 40,987 thousand in 2024, mainly due to increased listing costs and impairment losses[28]. - Other income increased from RMB 2,067 thousand in 2023 to RMB 6,185 thousand in 2024, mainly due to government subsidies rising from RMB 1,717 thousand to RMB 5,813 thousand[25]. - Basic earnings per share for 2024 were RMB 0.049, down from RMB 0.082 in 2023, reflecting a decline of 40.2%[200]. Assets and Liabilities - The company's net book value of properties, plants, and equipment as of December 31, 2024, is RMB 87,000, unchanged from 2023, and is used as collateral for bank loans amounting to RMB 37,200,000[40]. - The capital debt ratio as of December 31, 2024, is 21.2%, a decrease from 24.9% on December 31, 2023[48]. - The company has no significant acquisitions or investments during the reporting period[35]. - There are no contingent liabilities reported as of December 31, 2024, consistent with 2023[42]. - The company has no outstanding capital commitments as of December 31, 2024, with authorized but not contracted amounts at RMB 2,980,000, unchanged from 2023[47]. Governance and Management - The company has established a risk management system to identify, assess, and manage operational risks effectively[98]. - The board is responsible for maintaining proper accounting records to oversee and accurately disclose the financial status of the group[67]. - The company has mechanisms in place for directors to seek independent professional advice at the company's expense when necessary[75]. - The board consists of three female directors and three male directors, maintaining gender diversity in line with the company's policy[90]. - The company has established a stock option plan approved on June 30, 2023, aimed at attracting and retaining top talent, providing additional incentives, and driving business performance[158]. Shareholder Relations - The company has established multiple channels for ongoing communication with shareholders, including printed communications and annual general meetings[110]. - The board has reviewed the implementation and effectiveness of the shareholder communication policy, finding it to be well implemented and effective during the review year[111]. - The company has a policy for disclosing information to stakeholders, ensuring accurate and timely information dissemination[100]. Market and Industry Trends - The production of coated glass in China is expected to grow from 293 million square meters in 2018 to 427 million square meters in 2023, representing a compound annual growth rate (CAGR) of approximately 7.8%[123]. - Demand for smart glass in China is projected to increase significantly, with the production of switchable glass expected to rise from 254,000 square meters in 2018 to 675,000 square meters in 2023, reflecting a CAGR of 21.6%[123]. Compliance and Risk Management - The company closely monitors government policies and regulations to mitigate risks associated with compliance[39]. - The company has adopted internal control policies to ensure effective operations and compliance with applicable laws and regulations[99]. - The company has implemented a whistleblowing policy to encourage employees to report any misconduct related to financial reporting and compliance[95]. Charitable Contributions - The group made charitable donations totaling RMB 28,000 for the year ending December 31, 2024, compared to RMB 29,688 in 2023[127].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 82,846,000, an increase of 3.34% compared to RMB 80,153,000 for the same period in 2023[4] - Gross profit decreased to RMB 20,160,000, down 22.83% from RMB 26,123,000 in the previous year[4] - Operating profit for the period was RMB 13,284,000, a decline of 39.06% from RMB 21,851,000 in 2023[4] - Profit before tax was RMB 11,081,000, down 43.06% from RMB 19,431,000 in the same period last year[4] - Net profit for the period was RMB 9,385,000, a decrease of 44.51% compared to RMB 16,875,000 in 2023[5] - Basic and diluted earnings per share were RMB 2.04, down from RMB 4.23 in the previous year[4] - The company reported a total comprehensive income of RMB 8,905,000 for the six months ended June 30, 2024, compared to RMB 14,705,000 in the same period of 2023, indicating a decrease of approximately 39.8%[15] Revenue Breakdown - For the six months ended June 30, 2024, the revenue from energy-saving safety glass products was RMB 81,690,000, representing an increase from RMB 68,792,000 in the same period of 2023, which is approximately a 18.5% growth[22] - Revenue from energy-saving safety glass products was RMB 81,690 thousand, accounting for 99% of total revenue, compared to RMB 79,096 thousand in the previous year[62] - Total revenue increased by 3.36% from RMB 80,153 thousand in the six months ended June 30, 2023, to RMB 82,846 thousand in the six months ended June 30, 2024, primarily due to increased sales of energy-saving safety glass products[63] Cash Flow and Liquidity - The net cash generated from operating activities for the six months ended June 30, 2024, was RMB 851,000, a significant improvement compared to a net cash outflow of RMB (9,695,000) in the same period of 2023[16] - The net increase in cash and cash equivalents for the six months ended June 30, 2024, was RMB 1,685,000, compared to a decrease of RMB (5,886,000) in the same period of 2023[16] - The financing activities generated a net cash inflow of RMB 833,000 for the six months ended June 30, 2024, compared to a net cash outflow of RMB (2,116,000) in the same period of 2023[16] - As of June 30, 2024, the current ratio was 3.53, up from 3.23 at the end of 2023, indicating improved liquidity[76] Assets and Liabilities - Total assets less current liabilities amounted to RMB 338,494,000, an increase from RMB 324,849,000 as of December 31, 2023[7] - Inventory increased to RMB 171,523,000 from RMB 160,190,000 in the previous year[7] - Cash and cash equivalents rose to RMB 383,055,000 from RMB 369,229,000 as of December 31, 2023[7] - Trade and other payables decreased to RMB 17,631,000 from RMB 28,308,000 in the previous year[7] - Trade receivables totaled RMB 153,959,000 as of June 30, 2024, up from RMB 136,918,000 at the end of 2023, an increase of 12.4%[38] - Current liabilities totaled RMB 65,600 as of June 30, 2024, up from RMB 62,400 as of December 31, 2023[43] Cost and Expenses - Gross profit decreased from RMB 26,123 thousand (32.6% margin) to RMB 20,160 thousand (24.3% margin), attributed to intense product price competition[64] - Selling costs rose from RMB 54,030 thousand to RMB 62,686 thousand, mainly due to increased sales volume[66] - Employee costs increased from RMB 2,497 thousand to RMB 2,692 thousand[70] - Research and development costs increased to RMB 6,012,000 in 2024 from RMB 5,677,000 in 2023, representing an increase of 5.9%[31] Shareholder Information - As of June 30, 2024, Mr. Wei and Ms. Lin each hold 249,750,000 shares, representing 54.41% ownership[94] - Bright Global Limited, controlled by the Wei family trust, holds 249,750,000 shares, also representing 54.41% ownership[97] - The company did not declare any dividends for the six months ended June 30, 2024, consistent with the previous year[56] Corporate Governance - The company has adopted a code of conduct for securities transactions by directors, ensuring compliance with GEM Listing Rules[94] - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15, ensuring compliance and high standards of governance[106] - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2024, confirming compliance with applicable accounting standards and GEM Listing Rules[109] Market Outlook - The production of coated glass in China is expected to grow from 130.8 million square meters in 2021 to 171.6 million square meters by 2026, representing a compound annual growth rate (CAGR) of approximately 5.6%[93] - Demand for smart glass is projected to increase significantly, with the production of dimmable glass expected to rise from 513,800 square meters in 2021 to 1,496,500 square meters by 2026, reflecting a CAGR of 23.8%[93]

Financial Performance - For the six months ended June 30, 2024, the revenue was RMB 82,846,000, an increase of 3.3% compared to RMB 80,153,000 for the same period in 2023[5] - The gross profit for the same period was RMB 20,160,000, down 22.8% from RMB 26,123,000 in 2023[5] - Operating profit decreased to RMB 13,284,000, a decline of 39.1% from RMB 21,851,000 in the previous year[5] - Profit before tax was RMB 11,081,000, down 43.1% from RMB 19,431,000 in 2023[5] - The net profit for the period was RMB 9,385,000, a decrease of 44.4% compared to RMB 16,875,000 in the same period last year[5] - Basic and diluted earnings per share were RMB 2.04, down from RMB 4.23 in 2023[5] - Total comprehensive income for the period was RMB 8,905,000, down from RMB 14,705,000 in the previous year, reflecting a decline of 39.9%[7] Cost and Expenses - The cost of sales increased to RMB 62,686,000, up from RMB 54,030,000, reflecting a rise in operational costs[5] - Other net income decreased significantly to RMB 737,000 from RMB 3,581,000 in the previous year[5] - Selling and marketing expenses rose to RMB 151,000, compared to RMB 62,000 in 2023, indicating increased investment in marketing efforts[5] - General and administrative expenses slightly decreased to RMB 7,462,000 from RMB 7,791,000, showing cost control measures[5] - Research and development costs for the six months ended June 30, 2024, amounted to RMB 6,012,000, an increase of 5.9% from RMB 5,677,000 in the same period of 2023[32] - Employee costs rose to RMB 2,692,000 from RMB 2,497,000 in the previous year[71] Assets and Liabilities - Non-current assets as of June 30, 2024, amounted to RMB 64,000,000, a decrease from RMB 69,785,000 as of December 31, 2023, representing a reduction of 8.0%[8] - Inventory increased to RMB 171,523,000 from RMB 160,190,000, indicating a rise of 7.9%[8] - Trade receivables totaled RMB 153,959,000 as of June 30, 2024, up from RMB 136,918,000 as of December 31, 2023, marking an increase of about 12.4%[39] - Current liabilities, including bank loans, increased to RMB 65,600,000 as of June 30, 2024, compared to RMB 62,400,000 as of December 31, 2023, reflecting a growth of approximately 3.5%[44] - The total trade and other payables decreased to RMB 17,631,000 as of June 30, 2024, from RMB 28,308,000 as of December 31, 2023, indicating a reduction of approximately 37.7%[42] Cash Flow - Cash and cash equivalents at the end of the period were RMB 2,852,000, compared to RMB 1,167,000 at the beginning of the period, showing an increase of 143.8%[17] - Net cash generated from operating activities was RMB 851,000, a significant improvement from a net cash outflow of RMB 9,695,000 in the same period last year[17] - The company reported a net increase in cash and cash equivalents of RMB 1,685,000 for the period, compared to a decrease of RMB 5,886,000 in the previous year[17] Shareholder Information - The weighted average number of ordinary shares issued increased to 458,990,000 shares from 399,331,000 shares, reflecting a growth of approximately 14.9%[35] - The company holds 249,750,000 shares, representing 54.41% ownership, held through Bright Global Limited, which is fully owned by Wei Family Limited[98] Corporate Governance - The company is committed to improving corporate governance practices and believes that sound governance is crucial for sustainable development[107] - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2024, and confirmed compliance with applicable accounting standards and GEM listing rules[110] - The company has adopted the corporate governance code as per GEM listing rules and has complied with all applicable provisions during the reporting period[107] Market and Industry Outlook - China's coated glass production is expected to grow from 130.8 million square meters in 2021 to 171.6 million square meters by 2026, with a compound annual growth rate (CAGR) of approximately 5.6%[94] - Demand for smart glass in new buildings is strong, with production expected to rise from 513,800 square meters in 2021 to 1,496,500 square meters by 2026, reflecting a CAGR of 23.8%[94] Dividend Policy - The company does not recommend any dividend distribution for the six months ended June 30, 2024, consistent with the previous year[57] - The board does not recommend the distribution of an interim dividend for the six months ending June 30, 2024[111]

Fundraising and Allocation - The company raised a total of HKD 11,638,060 through the 2023 share subscription, with a net amount of HKD 11,558,060 after deducting related fees and expenses[1] - HKD 5,779,030 from the 2023 share subscription was used to repay borrowings, and another HKD 5,779,030 was allocated for general working capital[2] - The 2022 share subscription raised a net amount of HKD 39,600,000, with HKD 23,760,000 used for existing business maintenance and operations, including raw material purchases and equipment upgrades[2] - HKD 11,880,000 from the 2022 share subscription was allocated for purchasing new equipment capable of producing BIPV glass[2] - The remaining HKD 2,500,000 from the 2022 share subscription was used for general working capital in 2023[2]

Financial Performance - In 2023, the company's revenue increased by 4.07% compared to 2022, despite challenges in the real estate market[12]. - For the year ended December 31, 2023, total revenue increased by 4.07% to RMB 217,142 thousand from RMB 208,656 thousand in 2022, primarily due to growth in sales of energy-saving safety glass products[19]. - Revenue from energy-saving safety glass products was RMB 216,085 thousand, accounting for 99.5% of total revenue, compared to 98.6% in 2022[18]. - Gross profit decreased to RMB 63,763 thousand in 2023 from RMB 65,171 thousand in 2022, with a gross margin of 29.4%, down from 31.2%[20]. - Net profit after tax for the year ended December 31, 2023, was RMB 35,728 thousand, an increase of approximately 3.4% from RMB 34,560 thousand in 2022[28]. Expenses and Costs - Other income net decreased to RMB 2,067 thousand in 2023 from RMB 3,244 thousand in 2022, mainly due to a reduction in government subsidies[21]. - Selling costs increased to RMB 153,379 thousand in 2023 from RMB 143,485 thousand in 2022[22]. - Selling and marketing expenses rose to RMB 500 thousand in 2023 from RMB 304 thousand in 2022, attributed to increased marketing service fees[23]. - General and administrative expenses decreased significantly to RMB 21,381 thousand in 2023 from RMB 24,232 thousand in 2022[24]. Business Strategy and Market Position - The company aims to enhance its market position in the construction industry and expand its domestic market share[12]. - The company acquired a 5% stake in Xuan Yu Hao Cheng on December 29, 2023, to diversify its business and revenue sources[13]. - The company focuses on manufacturing and selling energy-saving safety glass and smart glass products under its "Hongguang" brand in South China[15]. - The product portfolio includes coated glass, insulated glass, laminated glass, tempered glass, and dimmable glass, catering to various customer needs[15]. - The company emphasizes strong R&D capabilities, particularly in patented technologies, to maintain product quality and adapt to market changes[15]. Corporate Governance - The company emphasizes the importance of high-level corporate governance for sustainable development and asset protection[68]. - The company has adopted the GEM Listing Rules and has complied with all applicable code provisions as of December 31, 2023[69]. - The board consists of seven members, including three independent non-executive directors, ensuring compliance with GEM listing rules[72][82]. - The board is responsible for maintaining proper accounting records and timely reporting of the company's financial status through quarterly, interim, and annual announcements[76]. - The company has established a clear separation of roles between the Chairman and the CEO to enhance independence and accountability[85]. Risk Management and Compliance - The company has established a risk management system to identify, assess, and manage various operational risks, ensuring effective internal controls[110]. - The board of directors is responsible for maintaining an effective risk management and internal control system, which is reviewed annually[112]. - The company emphasizes the importance of regulatory compliance and has allocated resources to ensure ongoing adherence to rules and regulations[170]. Shareholder and Capital Structure - The group's capital structure has remained unchanged since its listing on the GEM on January 13, 2020, with total equity solely composed of ordinary shares[41]. - A total of 59,990,000 shares were issued at a price of HKD 0.194 per share, raising approximately HKD 11,638,060, with net proceeds of about HKD 11,558,060 after expenses[42]. - The capital debt ratio as of December 31, 2023, was 24.9%, a decrease from 30.2% as of December 31, 2022[49]. - As of December 31, 2023, major shareholders Wei Jiakun and Lin Weishan each hold 249,750,000 shares, representing 54.41% ownership in the company[148]. Environmental and Social Responsibility - The company has adopted strict environmental protection measures to comply with current laws and regulations, including monitoring waste water discharge during production[169]. - The company reported a total charitable donation of RMB 29,688 for the year ending December 31, 2023, compared to RMB 13,300 in 2022[140]. - The company has maintained a healthy and safe working environment for employees, with no reported strikes or workplace accidents during the review year[173]. Future Plans and Investments - The company is continuously seeking acquisition or investment opportunities to enhance its risk resilience and drive growth[136]. - The company plans to enhance its R&D capabilities with 13.0% of the net proceeds, which is HKD 2.5 million (RMB 2.230 million)[185]. - The company aims to expand its sales and market reach with 5.7% of the net proceeds, equating to HKD 1.1 million (RMB 981,000)[185].

Financial Performance - China Hongguang Holdings Limited reported its annual financial performance for the year ending December 31, 2023[2]. - The company's revenue for the year ended December 31, 2023, increased by 4.07% to RMB 217,142 thousand from RMB 208,656 thousand in 2022[24]. - Revenue from energy-saving safety glass products accounted for 99.5% of total revenue, amounting to RMB 216,085 thousand, up from RMB 205,782 thousand in 2022[23]. - The gross profit decreased from RMB 65,171 thousand in 2022 to RMB 63,763 thousand in 2023, with a gross margin of 29.4% compared to 31.2% in the previous year[25]. - Other income net decreased from RMB 3,244 thousand in 2022 to RMB 2,067 thousand in 2023, primarily due to a reduction in government subsidies[26]. - The company's financing costs slightly increased from RMB 4,399 thousand in 2022 to RMB 4,402 thousand in 2023, mainly due to higher bank loan interest[30]. - The net profit after tax for the year ended December 31, 2023, was RMB 35,728 thousand, a 3.4% increase from RMB 34,560 thousand in 2022[33]. - The total sales cost increased from RMB 143,485 thousand in 2022 to RMB 153,379 thousand in 2023[27]. Corporate Governance - The company emphasizes continuous professional development for directors and senior management[83]. - The board consists of seven directors, three of whom are independent non-executive directors, meeting the requirement of at least one-third independence[87]. - The company has appointed at least three independent non-executive directors, with one possessing relevant professional qualifications[79]. - The board has mechanisms in place to ensure independent opinions are communicated effectively, enhancing decision-making[87]. - The company has established a code of conduct for directors that meets the standards set by the GEM Listing Rules[75]. - The board oversees the implementation of strategic plans to enhance shareholder value[80]. - The audit committee oversees the financial reporting process and internal control procedures[91]. - The company encourages all directors to express independent views and constructive inquiries during meetings[89]. Risk Management - The company has established a risk management system with policies and procedures related to procurement, production, sales performance, and product quality monitoring[115]. - The board is responsible for establishing and maintaining effective risk management and internal control systems, which are reviewed annually[117]. - The company has implemented a whistleblowing policy to encourage employees to report any misconduct related to financial reporting and compliance[112]. Market Strategy and Growth - The company aims to continuously seek acquisition or investment opportunities to enhance its risk resilience and drive growth[18]. - The company is expanding its market presence, targeting new regions in Southeast Asia, aiming for a 30% market share in these areas within the next two years[59]. - A strategic acquisition of a local competitor is in progress, which is anticipated to increase market share by 15%[59]. - The company has invested 50 million in research and development to innovate new glass processing techniques[59]. - The company has outlined a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 1.32 billion[59]. Compliance and Regulatory - The announcement complies with the GEM listing rules and aims to provide relevant information about the company[4]. - The audit was conducted by Zhongzheng Tianheng CPA Limited, ensuring compliance with regulatory standards[13]. - The company maintained compliance with GEM listing rules regarding public float since the listing date[160]. - The group has no major contingent liabilities as of December 31, 2023[45]. Employee and Social Responsibility - The company has provided comprehensive benefits and career development opportunities for employees, ensuring a healthy and safe working environment[178]. - Charitable donations made by the group totaled RMB 29,688 for the fiscal year ending December 31, 2023, compared to RMB 13,300 in 2022, reflecting a significant increase[145]. - The company has arranged liability insurance for directors and senior officers to protect against potential claims[167]. Financial Position - As of December 31, 2023, the current ratio of the group is 3.23, compared to 2.87 as of December 31, 2022[35]. - The group's cash and cash equivalents totaled RMB 1,167 thousand as of December 31, 2023, down from RMB 13,268 thousand in 2022[35]. - Bank loans amounted to RMB 62,400 thousand as of December 31, 2023, compared to RMB 61,500 thousand in 2022[35]. - The capital debt ratio as of December 31, 2023, is 24.9%, down from 30.2% as of December 31, 2022[54]. Shareholder Engagement - The company has established multiple communication channels to ensure effective engagement with shareholders and stakeholders[127]. - The company’s governance policies have been reviewed and deemed effective in facilitating shareholder communication[127]. - The company has a policy for disclosing information to external parties, ensuring accurate and timely communication with stakeholders[117].

Financial Performance - For the nine months ended September 30, 2023, the revenue was RMB 115,119,000, an increase of 6.5% compared to RMB 107,885,000 for the same period in 2022[11] - Gross profit for the same period was RMB 35,821,000, representing a gross margin of 31.1%, up from RMB 32,627,000 in 2022[11] - Operating profit increased to RMB 24,514,000, a rise of 14.4% from RMB 21,432,000 in the previous year[11] - Profit before tax for the nine months was RMB 20,931,000, up 12.1% from RMB 18,670,000 in 2022[11] - Net profit for the period was RMB 17,587,000, compared to RMB 16,881,000 in the same period last year, reflecting a growth of 4.2%[11] - Basic and diluted earnings per share decreased to RMB 0.042 from RMB 0.054 in the previous year[11] - The total comprehensive income for the period was RMB 17,587,000, unchanged from the previous year[12] Revenue Breakdown - For the nine months ended September 30, 2023, the total revenue from energy-saving safety glass products was RMB 114,062,000, an increase of 7.5% compared to RMB 105,990,000 for the same period in 2022[26] - The total revenue from smart glass products was RMB 1,057,000, a decrease of 44.9% from RMB 1,895,000 in the previous year[26] - The total revenue for the group for the nine months ended September 30, 2023, was RMB 115,119,000, compared to RMB 107,885,000 for the same period in 2022, reflecting an increase of 6.7%[26] - Revenue from energy-saving safety glass products was RMB 114,062 thousand, accounting for 99% of total revenue, compared to RMB 105,990 thousand and 98% in the previous year[49] Costs and Expenses - The company reported a financial cost of RMB 3,583,000, which increased from RMB 2,762,000 in 2022[11] - Employee costs for the nine months ended September 30, 2023, amounted to RMB 3,846,000, an increase of 6.4% from RMB 3,616,000 in the previous year[32] - Research and development costs for the nine months ended September 30, 2023, were RMB 8,560,000, slightly up from RMB 8,511,000 in the same period of 2022[36] - The cost of inventory for the nine months ended September 30, 2023, was RMB 79,298,000, compared to RMB 75,258,000 in the previous year, indicating an increase of 5.4%[36] - Selling costs increased to RMB 79,298 thousand from RMB 75,258 thousand, mainly due to higher sales volume[54] - Financing costs increased to RMB 3,583 thousand from RMB 2,762 thousand, reflecting higher borrowing costs[57] Shareholder Information - As of September 30, 2023, Mr. Wei and Ms. Lin each hold 249,750,000 shares, representing 54.41% ownership in the company[78] - Bright Global Limited, controlled by the Wei Family Trust, also holds 249,750,000 shares, accounting for 54.41% of the total shares[82] - Dongsheng Venture Limited and Ms. Wang each hold 49,500,000 shares, representing 10.78% ownership[82] - Lice International Holdings Limited and Mr. Li each hold 24,750,000 shares, which is 5.39% of the total shares[84] - The company has not entered into any arrangements that would allow directors or key executives to benefit from acquiring shares or related securities[80] - No share options have been granted or agreed to be granted under the stock option plan since its adoption[89] Corporate Governance - The company is committed to improving corporate governance practices and has adopted the GEM Listing Rules corporate governance code[91] - The company has maintained compliance with all applicable corporate governance codes during the reporting period[91] - The unaudited consolidated financial statements for the nine months ended September 30, 2023, have been reviewed by the audit committee, confirming compliance with applicable accounting standards and GEM listing rules[92] Future Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[11] - The market for coated glass in China is expected to grow from 293 million square meters in 2018 to 427 million square meters in 2023, with a compound annual growth rate of approximately 7.8%[74] - Demand for smart glass products is anticipated to increase, with production expected to rise from 254,000 square meters in 2018 to 675,000 square meters in 2023, reflecting a compound annual growth rate of 21.6%[74] - The company is exploring a strategic partnership with Xianeng Technology to develop Building Integrated Photovoltaic (BIPV) projects in mainland China[69] Dividend Policy - The company did not recommend any dividend distribution for the nine months ended September 30, 2023, consistent with the previous year[42] - No dividends were recommended for the nine months ended September 30, 2023[73] - The board of directors does not recommend the distribution of a quarterly dividend for the nine months ended September 30, 2023[93] Compliance and Reporting - The financial statements are prepared in accordance with the applicable Hong Kong Financial Reporting Standards and comply with the GEM Listing Rules[21] - No significant investments or acquisitions were made during the nine months ended September 30, 2023[62][63] - No significant matters requiring disclosure have occurred from September 30, 2023, to the date of this quarterly report[96]

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的任何損失承擔任何責 任。 China Hongguang Holdings Limited 中 國 宏 光 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：8646） 二 零 二 三 年 第 三 季 度 業 績 公 告 中國宏光控股有限公司（「本公司」）董事會（「董事會」）欣然宣佈本公司及其附屬 公司（統稱「本集團」）截至二零二三年九月三十日止九個月之未經審核簡明綜 合業績。本公告列載本集團二零二三年第三季度報告全文，乃符合香港聯合交 易所有限公司（「聯交所」）GEM證券上市規則（「GEM上市規則」）中有關第三季度 業績初步公告附載的資料之相關要求。 承董事會命 中國宏光控股有限公司 主席兼執行董事 林偉珊 香港，二零二三年十一月十三日 於本公告日期，執行董事為魏佳坤先生、林偉珊女士、陳壁明先生及李婉娜女 ...