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 中 期 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」）截至二零二三年六月三十日止六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中期報告全文，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」）中有關中期業績初步 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，二零二三年八月十四日 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 ...

Financial Performance - For the first quarter of 2023, China Hongguang Holdings Limited reported revenue of RMB 41,712,000, an increase of 11.8% compared to RMB 37,470,000 in the same period of 2022[9] - The gross profit for the first quarter of 2023 was RMB 13,817,000, representing a 17.9% increase from RMB 11,721,000 in the first quarter of 2022[9] - Operating profit for the first quarter of 2023 reached RMB 10,301,000, up 28.4% from RMB 8,023,000 in the same quarter of the previous year[9] - The profit before tax for the first quarter of 2023 was RMB 9,327,000, reflecting a 30.4% increase compared to RMB 7,156,000 in the first quarter of 2022[9] - The net profit for the first quarter of 2023 was RMB 7,898,000, which is a 29.8% increase from RMB 6,085,000 in the same period last year[9] - Basic and diluted earnings per share for the first quarter of 2023 remained at RMB 0.020, unchanged from the first quarter of 2022[9] Revenue Breakdown - For the three months ended March 31, 2023, the unaudited consolidated revenue from the sale of energy-saving safety glass products was RMB 41,015,000, an increase of 9.8% from RMB 37,470,000 in the same period of 2022[24] - The revenue from the sale of smart glass products was RMB 697,000, with no revenue reported in the same period of 2022[24] - Revenue from energy-saving safety glass products accounted for 98% of total revenue, amounting to RMB 41,015 thousand, compared to RMB 37,470 thousand in the previous year[50] Expenses and Costs - Sales and marketing expenses increased slightly to RMB 29,000 in the first quarter of 2023 from RMB 23,000 in the previous year[9] - General and administrative expenses decreased to RMB 3,598,000 in the first quarter of 2023 from RMB 3,633,000 in the same period of 2022[9] - Employee costs totaled RMB 1,238,000 for the three months ended March 31, 2023, an increase of 16.1% from RMB 1,066,000 in the same period of 2022[30] - Research and development costs for the three months ended March 31, 2023, were RMB 2,145,000, down from RMB 2,887,000 in the same period of 2022, indicating a decrease of 25.7%[33] - The income tax expense for the three months ended March 31, 2023, was RMB 1,429,000, compared to RMB 1,071,000 in the same period of 2022, reflecting an increase of 33.5%[36] Shareholder Information - As of March 31, 2023, the company’s major shareholders, Mr. Wei Jiakun and Ms. Lin Weishan, each hold 249,750,000 shares, representing 62.59% ownership[74] - Major shareholder Bright Global Limited holds 249,750,000 shares, representing 62.59% of the total shares[78] Corporate Governance - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with GEM listing rules[73] - The company has adopted the corporate governance code as per GEM listing rules and has complied with all applicable provisions during the reporting period[87] - The audit committee reviewed the unaudited condensed consolidated financial statements for the three months ended March 31, 2023, ensuring compliance with applicable accounting standards[88] Strategic Developments - The company has established a strategic partnership with Xianeng Technology (Beijing) Co., Ltd. to promote the development of Building Integrated Photovoltaic (BIPV) projects in mainland China[66] - The company is leveraging its expertise in smart glass production to capitalize on the growing demand in the Chinese market[70] Dividend and Securities - The company did not declare any dividends for the three months ended March 31, 2023, consistent with the previous year[42] - The board does not recommend the distribution of an interim dividend for the three months ended March 31, 2023[91] - The company did not purchase, redeem, or sell any of its listed securities during the three months ended March 31, 2023[83] Market Outlook - 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%[70] - The demand for smart glass products is anticipated to increase, with the production of dimmable glass projected to rise from 254,000 square meters in 2018 to 675,000 square meters in 2023, reflecting a CAGR of 21.6%[70] Compliance and Risk Management - The company is closely monitoring government policies and regulations that may impact its operations and is conducting research to assess these changes[64] - No significant events have occurred that would materially affect the company's operations and financial performance since March 31, 2023[65] - The company has not established any major investment or capital asset acquisition plans as of March 31, 2023[66] - There are no significant contingent liabilities held by the group as of March 31, 2023[86] - The company has not identified any conflicts of interest involving directors or major shareholders as of March 31, 2023[81] - There are no known significant events that require disclosure after March 31, 2023, up to the date of the quarterly report[82]

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 一 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」）截至二零二三年三月三十一日止三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一季度報告全文，乃符合香港聯合 交易所有限公司GEM（「GEM」）證券上市規則（「GEM上市規則」）中有關第一季度 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，二零二三年五月十五日 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 ...

Financial Performance - The revenue for China Hongguang Holdings Limited increased by 2.7% year-on-year in 2022[12]. - Total revenue for the year ended December 31, 2022, increased by 2.7% to RMB 208,656 thousand from RMB 203,074 thousand in 2021, primarily due to growth in sales of energy-saving safety glass products[18]. - Revenue from energy-saving safety glass products was RMB 205,782 thousand, accounting for 98.6% of total revenue, compared to 90.1% in 2021[18]. - Gross profit increased from RMB 57,504 thousand in 2021 to RMB 65,171 thousand in 2022, with a gross margin rising to 31.2% from 28.3%[19]. - Other income net increased from RMB 3,137 thousand in 2021 to RMB 3,244 thousand in 2022, mainly due to government subsidies rising from RMB 2,158 thousand to RMB 2,901 thousand[20]. - Net profit after tax for the year ended December 31, 2022, was RMB 34,560 thousand, a decrease of approximately 11.4% from RMB 39,000 thousand in 2021, mainly due to a significant rise in expenses[27]. Expenses and Costs - Selling and marketing expenses rose from RMB 159 thousand in 2021 to RMB 304 thousand in 2022, primarily due to increased marketing service fees[22]. - General and administrative expenses significantly increased from RMB 13,823 thousand in 2021 to RMB 24,323 thousand in 2022, mainly due to listing fees and increased impairment losses on trade and other receivables[23]. - Financing costs increased from RMB 3,071 thousand in 2021 to RMB 4,399 thousand in 2022, primarily due to higher interest on other borrowings[24]. Corporate Strategy and Market Position - The company aims to enhance its market position in the construction industry and expand its domestic market share[11]. - China Hongguang is actively seeking acquisition or investment opportunities to strengthen its risk resilience and drive growth[13]. - The company has entered into a non-binding memorandum of understanding with Beijing Zhenyan Asset Management to explore cooperation in the social e-commerce sector[13]. - A strategic partnership is being pursued with Xianneng Technology to promote Building Integrated Photovoltaic (BIPV) projects in mainland China[13]. Governance and Management - The company emphasizes high-level corporate governance practices to ensure sustainable development and protect the interests and assets of the group[62]. - The company has adopted the corporate governance code as per GEM Listing Rules and has complied with all applicable provisions as of December 31, 2022[63]. - The board consists of seven members, including three independent non-executive directors, meeting the requirement of at least one-third independence[67]. - The company has established a mechanism to ensure the independence of the board, with regular reviews by the nomination and remuneration committee[76]. - The company has established a clear communication policy with stakeholders, including shareholders and regulatory bodies[69]. Risk Management and Internal Controls - The company has established a risk management system with policies and procedures related to procurement, production, sales performance, and product quality monitoring[101]. - The audit committee and board will review the risk management and internal control systems annually, ensuring no significant deficiencies are noted[103]. - The company has adopted an internal control policy to ensure effective operations, reliable financial reporting, and compliance with applicable laws and regulations[102]. Shareholder and Capital Structure - The company raised approximately HKD 39,600,000 through a share subscription agreement, with 60% allocated for maintaining and operating existing businesses, 30% for potential acquisitions, and 10% for general working capital[40]. - The company’s capital structure remains unchanged since its listing on GEM on January 13, 2020, with total equity solely composed of ordinary shares[40]. - Major shareholder Bright Global Limited holds 249,750,000 shares, representing 62.59% of the total shares[139]. Compliance and Regulatory Matters - The company has established a non-competition agreement with its controlling shareholders, ensuring no direct or indirect competition in restricted businesses during the relevant period[149]. - Independent non-executive directors have reviewed compliance with the non-competition agreement and confirmed adherence by the controlling shareholders[150]. - The company maintains good relationships with regulatory authorities to ensure compliance with regulations[159]. Future Outlook and Growth - The company is exploring potential acquisitions in the BIPV glass system business and social e-commerce[40]. - The company anticipates that the production of coated glass in China will increase from 293 million square meters in 2018 to 427 million square meters by 2023, representing a compound annual growth rate (CAGR) of approximately 7.8%[124]. - The estimated production of smart glass in China is expected to grow from 254,000 square meters in 2018 to 675,000 square meters by 2023, with a CAGR of 21.6%[124].

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 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 二 年 年 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」）截至二零二二年十二月三十一日止年度之經審核綜合財 務業績。本公告列載本集團二零二二年年度報告全文，乃符合香港聯合交易所 有限公司GEM（「GEM」）證券上市規則（「GEM上市規則」）中有關年度業績初步公 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，二零二三年三月三十一日 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 ...

Financial Performance - For the six months ended June 30, 2022, the company reported revenue of RMB 70,687 thousand, an increase from RMB 63,068 thousand in the same period of 2021, representing a growth of approximately 12.5%[11] - The gross profit for the same period was RMB 21,481 thousand, compared to RMB 16,731 thousand in 2021, indicating a year-on-year increase of about 28.5%[11] - The operating profit decreased to RMB 10,883 thousand for the six months ended June 30, 2022, down from RMB 12,260 thousand in 2021, reflecting a decline of approximately 11.3%[11] - The net profit for the six months was RMB 6,988 thousand, a decrease from RMB 8,031 thousand in the previous year, which is a decline of about 13.0%[12] - The company reported a basic and diluted earnings per share of RMB 0.30 for the six months ended June 30, 2022, compared to RMB 0.33 in the same period of 2021[11] - The total comprehensive income for the six months was RMB 6,816 thousand, down from RMB 8,859 thousand in 2021, representing a decrease of approximately 23.1%[12] - The company incurred finance costs of RMB 2,007 thousand for the six months, a reduction from RMB 2,810 thousand in the same period of the previous year, indicating a decrease of about 28.5%[11] - The company experienced a foreign exchange loss of RMB 247 thousand for the six months, compared to a gain of RMB 75 thousand in the same period of 2021[12] Revenue Breakdown - Revenue from energy-saving safety glass products for the six months ended June 30, 2022, was RMB 68,792,000, an increase of 27% compared to RMB 54,171,000 for the same period in 2021[37] - Revenue from smart glass products for the six months ended June 30, 2022, was RMB 1,895,000, a decrease of 79% compared to RMB 8,897,000 for the same period in 2021[37] - Total revenue for the six months ended June 30, 2022, was RMB 70,687,000, compared to RMB 63,068,000 for the same period in 2021, reflecting an overall increase of 12%[37] - Revenue from energy-saving safety glass products accounted for 97% of total revenue, amounting to RMB 68,792 thousand, up from RMB 54,171 thousand in the previous year[81] Expenses and Costs - Selling costs increased to RMB 49,206 thousand from RMB 46,337 thousand, primarily due to higher sales volume[85] - General and administrative expenses rose significantly to RMB 11,294 thousand from RMB 5,556 thousand, driven by increased professional service fees[87] - Research and development costs for the six months ended June 30, 2022, amounted to RMB 5,760,000, an increase of 26% from RMB 4,555,000 in the same period of 2021[47] - Depreciation of property, plant, and equipment for the six months ended June 30, 2022, was RMB 4,831,000, significantly higher than RMB 1,227,000 for the same period in 2021, marking an increase of 294%[47] - Employee costs decreased from RMB 2,651 thousand for the six months ended June 30, 2021, to RMB 2,541 thousand for the six months ended June 30, 2022, representing a decline of approximately 4.2%[90] - Income tax expenses increased from RMB 1,419 thousand for the six months ended June 30, 2021, to RMB 1,888 thousand for the six months ended June 30, 2022, marking an increase of about 32.9% due to improved revenue from a subsidiary[91] Assets and Liabilities - As of June 30, 2022, the total current assets amounted to RMB 275,811,000, an increase from RMB 267,400,000 in the previous year, representing a growth of approximately 3.3%[14] - The net current asset value was reported at RMB 168,742,000, up from RMB 154,719,000, indicating a year-over-year increase of about 9%[15] - The total liabilities decreased from RMB 112,681,000 to RMB 107,069,000, reflecting a reduction of approximately 5%[14] - The company reported a net cash outflow from operating activities of RMB (23,727,000) for the six months ended June 30, 2022, compared to a net inflow of RMB 11,678,000 in the same period last year[23] - Cash and cash equivalents at the end of the period were RMB 10,218,000, down from RMB 12,930,000, representing a decrease of about 21%[23] - The total equity increased to RMB 207,393,000 from RMB 200,577,000, marking a growth of approximately 3.9%[18] - The company’s non-current assets were valued at RMB 50,846,000, a decrease from RMB 56,560,000, indicating a decline of about 10.1%[16] - The company’s bank loans increased to RMB 59,200,000 as of June 30, 2022, from RMB 42,500,000 as of December 31, 2021[64] - The interest rate on bank loans ranged from 3.95% to 6.40% as of June 30, 2022, compared to 3.85% to 7.00% as of December 31, 2021[65] - The company’s trade payables decreased significantly to RMB 6,834,000 as of June 30, 2022, from RMB 38,921,000 as of December 31, 2021[62] Strategic Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[11] - The management remains optimistic about the company's long-term prospects despite the short-term challenges faced in the current financial period[11] - The company continues to focus on the manufacturing and sales of construction glass products in China, with no specific new product launches or market expansions mentioned in the report[25] - The company maintains a strong product portfolio, focusing on energy-saving and smart glass products to meet diverse customer needs[77] - The company plans to upgrade and purchase production equipment to improve efficiency and quality as part of its operational strategy[132] Shareholder Information - The company’s major shareholders, Mr. Wei and Ms. Lin, each hold 150,750,000 shares, representing 50.25% ownership[121] - Major shareholder Bright Global Limited holds 150,750,000 shares, representing 50.25% of the total shares[126] - The company entered into a share subscription agreement on May 17, 2022, to issue 99,000,000 shares at a subscription price of HKD 0.4 per share, totaling approximately HKD 39,600,000[132] - The net proceeds from the share subscription are expected to be approximately HKD 39,250,000, with 60% allocated for maintaining existing operations, 30% for potential acquisitions, and 10% for general working capital[132] - The company did not declare any dividends for the six months ended June 30, 2022, consistent with the previous year[73] - The board did not recommend the distribution of an interim dividend for the six months ended June 30, 2022[145] Compliance and Governance - The company has not adopted any new accounting standards or interpretations that became effective during the reporting period[27] - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2022, ensuring compliance with applicable accounting standards and GEM listing rules[144] - The company adopted the corporate governance code as per GEM listing rules and has complied with all applicable provisions during the reporting period[143] - The company has not encountered any circumstances that would require disclosure under GEM Listing Rules 17.22 to 17.24 as of June 30, 2022[112] - The company has not identified any conflicts of interest involving directors or major shareholders as of June 30, 2022[135] Market Trends - The production of coated glass in China is expected to grow from 293 million square meters in 2018 to 427 million square meters by 2023, with a compound annual growth rate (CAGR) of approximately 7.8%[118] - Demand for smart glass products is anticipated to increase, with the production of switchable glass projected to rise from 254,000 square meters in 2018 to 675,000 square meters by 2023, reflecting a CAGR of 21.6%[118]

Financial Performance - For the first quarter ended March 31, 2022, the company reported revenue of RMB 37,470,000, an increase of 11.7% compared to RMB 33,495,000 in the same period last year[11] - The gross profit for the same period was RMB 11,721,000, representing a gross margin of 31.2%, up from RMB 8,694,000 in the previous year[11] - The operating profit increased to RMB 8,023,000, a rise of 24.8% from RMB 6,427,000 year-on-year[11] - The net profit for the quarter was RMB 6,085,000, which is a 27% increase compared to RMB 4,797,000 in the prior year[11] - Basic and diluted earnings per share were RMB 0.020 and RMB 0.016 respectively, reflecting an increase in profitability[11] - The company reported a total comprehensive income of RMB 6,085,000 for the quarter, compared to RMB 4,797,000 in the same period last year[11] - The group reported a pre-tax profit of RMB 1,066,000 for the three months ended March 31, 2022, down from RMB 1,347,000 in the same period of 2021, reflecting a decrease of approximately 21.0%[34] - The group reported a net loss of RMB 42,000 for other income for the three months ended March 31, 2022, compared to a net gain of RMB 295,000 in the same period of 2021[32] - The group’s net profit for the three months ended March 31, 2022, was RMB 6,085,000, an increase from RMB 4,797,000 for the same period in 2021, primarily due to higher revenue[66] Revenue Breakdown - For the three months ended March 31, 2022, the revenue from energy-saving safety glass products was RMB 37,470,000, compared to RMB 30,378,000 for the same period in 2021, representing a growth of approximately 23.0%[23] - Revenue from energy-saving safety glass products was RMB 37,470 thousand, accounting for 100% of total revenue, compared to RMB 30,378 thousand (90.7%) in the same period of 2021[54] - The total revenue for the group for the three months ended March 31, 2022, was RMB 37,470,000, while the revenue for the same period in 2021 was RMB 33,495,000, indicating an increase of about 11.7%[23] - For the three months ended March 31, 2022, the total revenue increased by 11.87% to RMB 37,470 thousand from RMB 33,495 thousand in the same period of 2021, primarily due to increased sales of energy-saving safety glass products[54] Costs and Expenses - The financial costs for the quarter were RMB 867,000, up from RMB 781,000 in the previous year, indicating increased financing expenses[11] - The cost of sales increased from RMB 24,801 thousand to RMB 25,749 thousand, mainly due to higher sales volume[59] - Research and development costs for the three months ended March 31, 2022, amounted to RMB 2,887,000, up from RMB 2,063,000 in the same period of 2021, representing an increase of approximately 40.0%[37] - Employee costs decreased from RMB 1,347 thousand to RMB 1,066 thousand during the same period[63] - The group incurred interest expenses of RMB 867,000 for bank loans and other borrowings for the three months ended March 31, 2022, compared to RMB 781,000 in the same period of 2021, indicating an increase of about 11.0%[34] - The group’s income tax expense rose from RMB 849,000 for the three months ended March 31, 2021, to RMB 1,071,000 for the same period in 2022, attributed to better revenue performance from a subsidiary[65] Equity and Investments - The company’s total equity as of March 31, 2022, was RMB 206,662,000, an increase from RMB 200,577,000 at the end of the previous year[13] - The group did not have any significant acquisitions or investments during the three months ended March 31, 2022, nor in the same period of 2021[68][69] - The group has terminated a conditional share purchase agreement for acquiring a new company, which will not have any significant adverse impact on its business operations and financial condition[74] - The company entered into a share purchase agreement to acquire 100% of a newly registered company for HKD 64,200,000, but the agreement was terminated on May 12, 2022, with no significant adverse impact on the group's operations[93] Corporate Governance and Compliance - The audit committee reviewed the unaudited condensed consolidated financial statements for the three months ended March 31, 2022, ensuring compliance with applicable accounting standards[102] - The company is committed to improving corporate governance practices and believes that sound governance is crucial for sustainable development[99] - The company closely monitors government policies and regulations that may impact its operations and compliance[72] - There were no related party transactions that met the definition of connected transactions under GEM Listing Rules during the reporting period[91] Future Outlook - The company plans to continue expanding its market presence and investing in new product development to drive future growth[11] - The management expressed confidence in achieving further growth in the upcoming quarters, supported by strategic initiatives and market expansion efforts[11] - The group anticipates that the production of coated glass in China will 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%[78] - Demand for smart glass products is expected to increase, with the production of switchable glass projected to rise from 254,000 square meters in 2018 to 675,000 square meters in 2023, reflecting a CAGR of 21.6%[78] Dividends and Shareholder Information - The company did not declare any dividends for the three months ended March 31, 2022, consistent with the previous year[45] - The company does not recommend any dividend distribution for the three months ended March 31, 2022, consistent with the previous year[77] - Major shareholder Bright Global Limited holds 150,750,000 shares, representing 50.25% of the total shares[86] - The company did not engage in any purchase, redemption, or sale of its listed securities during the three months ended March 31, 2022[96] - The company has no stock option plan as of March 31, 2022[97] - There were no significant contingent liabilities held by the group as of March 31, 2022[98] - The board did not recommend the distribution of an interim dividend for the three months ended March 31, 2022[103]

Financial Performance - In 2021, the company's revenue increased by 29.4% compared to 2020[14] - Total revenue increased by 29.4% to RMB 203,074 thousand for the year ended December 31, 2021, compared to RMB 156,904 thousand in 2020, driven by rising construction demand in mainland China[23] - Revenue from energy-saving safety glass products was RMB 182,986 thousand, accounting for 90.1% of total revenue, while smart glass products generated RMB 20,088 thousand, representing 9.9%[22] - Gross profit rose to RMB 57,504 thousand with a gross margin of 28.3%, up from RMB 43,005 thousand and a margin of 27.4% in the previous year[25] - Other income increased from RMB 1,397 thousand in 2020 to RMB 3,137 thousand in 2021, primarily due to government grants rising to RMB 2,158 thousand[26] - Net profit after tax surged approximately 279% to RMB 39,000 thousand for the year ended December 31, 2021, compared to RMB 10,296 thousand in 2020[34] - Cash and cash equivalents amounted to RMB 12,930 thousand as of December 31, 2021, significantly up from RMB 2,003 thousand in 2020[40] - The current ratio decreased to 2.37 as of December 31, 2021, from 2.79 in the previous year[40] - Financing costs increased to RMB 3,071 thousand in 2021 from RMB 2,417 thousand in 2020, mainly due to higher interest on other borrowings[31] Market Position and Strategy - The company aims to enhance its market position in the construction industry and expand its domestic market share[14] - The company is actively seeking acquisition or investment opportunities to enhance its risk resilience and drive growth[15] - A share purchase agreement was signed on April 13, 2021, to expand the company's downstream business, ensuring stable demand for glass products used in construction services[15] - The company is focused on leveraging the substantial development potential in the construction glass industry and related sectors[14] - The company is committed to strategic deployment to capture future growth opportunities in the construction glass industry[14] Corporate Governance - The company held six board meetings during the year ended December 31, 2021, complying with the corporate governance code[90] - The board is responsible for overseeing the company's overall management and ensuring the implementation of strategic plans to enhance shareholder value[81] - The company has adopted the GEM Listing Rules and has complied with all applicable provisions since its listing date[76] - The board consists of four executive directors and three independent non-executive directors, meeting the requirement of having at least three independent directors[78] - The company emphasizes continuous improvement in corporate governance practices to safeguard its interests and assets[75] - The board is tasked with reviewing financial performance, risk management, and major transactions, including acquisitions and capital expenditures[82] - The company has established a code of conduct for directors that meets the standards set by the GEM Listing Rules[77] - The independent non-executive directors provide strategic advice and contribute their expertise to the board's operations[86] - The company has a structured approach to training and professional development for directors and senior management[83] - The company maintains appropriate accounting records to ensure accurate disclosure of its financial position[82] - The company has established a clear separation of roles between the Chairman and the CEO to ensure balanced power distribution and enhance independence and accountability[92] Risk Management - The company closely monitors government policies and regulations to mitigate risks associated with compliance failures[45] - The company has established a risk management system to identify, assess, and manage various operational risks, ensuring effective monitoring of sales performance and product quality[112] - The board has adopted internal control policies and procedures to provide reasonable assurance of effective operations and compliance with applicable laws and regulations[113] - The company has no foreign currency hedging policy but monitors foreign exchange risks and may consider hedging when necessary[43] Employee and Stakeholder Relations - The company expresses gratitude to its employees and stakeholders for their support during the challenging year[15] - The company employed 69 full-time staff, with total employee costs around RMB 5,605 thousand for the year[39] - The company plans to invest $L million in workforce training and development to enhance employee skills and productivity[65] Environmental and Social Responsibility - The company has implemented strict environmental protection measures to comply with current laws and regulations[181] - The management team emphasized the importance of sustainability initiatives, aiming for a K% reduction in carbon emissions by 2025[65] Shareholder Communication - The company established a shareholder communication policy to ensure effective communication with shareholders and stakeholders[125] - Shareholders have the right to request the board to convene a special general meeting if they hold at least 10% of the paid-up capital with voting rights[119] Acquisitions and Investments - The company agreed to acquire 100% of the issued share capital of a newly registered company for HKD 64.2 million to expand its downstream business[51] - The company entered into a conditional share purchase agreement to acquire 100% of the issued share capital of a newly registered company for HKD 64.2 million, with part of the payment made through the issuance of shares and convertible bonds[190] - The company is actively seeking acquisition or investment opportunities to enhance risk resilience and drive new growth[141] Production and Demand - The company reported a significant increase in the production of coated glass, with expected output rising from 293 million square meters in 2018 to 427 million square meters by 2023, representing a compound annual growth rate (CAGR) of approximately 7.8%[139] - Demand for smart glass is projected to grow substantially, with the production of dimmable glass expected to increase from 254,000 square meters in 2018 to 675,000 square meters by 2023, reflecting a CAGR of 21.6%[139] Dividend Policy - The company does not recommend the distribution of a final dividend for the year ended December 31, 2021, consistent with no dividends in 2020[57] - The company did not recommend the payment of a final dividend for the year ending December 31, 2021, consistent with the previous year where no dividend was declared[137] - The company’s financial performance and future dividend declarations will consider factors such as operational performance, capital requirements, and economic conditions[126]

e 完光 9 CHINA HONGGUANG HOLDINGS LIMITED 中國宏光控股有限公司 (於開疊群島註冊成立的有限公司) 股份代號: 8646 / 第三季度 報告 e � 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在主板上 市的公司帶有較高投資風險。有意投資的人士應瞭解投資於該等公司的潛在風險， 並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之 證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市 場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本報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。 本報告資料乃遵照聯交所GEM證券上巿規則（「GEM上市規則」）的規定而刊載，旨在 提供有關中國宏光控股有限公司（「本公司」連同附屬公司，統稱「本集團」）的資料； 本公司董事（統稱「董事」，各為一名「董事」）願就本報告共同及個別承擔全部責任。 各 ...

9 the with CHINA HONGGUANG HOLDINGS LIMITED 中國宏光控股有限公司 (於開疊群島註冊成立的有限公司) 股份代號: 8646 中期報告 e e e 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在主板上 市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險， 並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣之 證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市 場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整 性亦不發表任何聲明，並明確表示，概不對因本報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。 本報告資料乃遵照聯交所GEM證券上巿規則（「GEM上市規則」）的規定而刊載，旨在 提供有關中國宏光控股有限公司（「本公司」連同附屬公司，統稱「本集團」）的資料； 本公司董事（統稱「董事」，各為一名「董事」）願就本報告共同及個別承擔全部責任。 ...