Financial Performance - The company's operating revenue for the first half of 2022 was approximately ¥43.60 billion, representing a 43.96% increase compared to ¥30.29 billion in the same period last year[19]. - The net profit attributable to shareholders for the first half of 2022 was approximately ¥2.08 billion, a 20.09% increase from ¥1.73 billion in the previous year[19]. - The net profit after deducting non-recurring gains and losses was approximately ¥2.01 billion, reflecting a 42.90% increase from ¥1.41 billion in the same period last year[19]. - The net cash flow from operating activities was approximately ¥4.59 billion, up 15.23% from ¥3.98 billion in the previous year[19]. - The total assets at the end of the reporting period were approximately ¥65.08 billion, a 6.55% increase from ¥61.08 billion at the end of the previous year[19]. - The net assets attributable to shareholders at the end of the reporting period were approximately ¥29.47 billion, a 7.86% increase from ¥27.33 billion at the end of the previous year[19]. - The basic earnings per share for the first half of 2022 were ¥0.62, up 19.23% from ¥0.52 in the same period last year[19]. - The diluted earnings per share for the first half of 2022 were also ¥0.62, reflecting a 19.23% increase from ¥0.52 in the previous year[19]. - The weighted average return on equity was 7.28%, a slight decrease of 0.47% from 7.75% in the previous year[19]. Strategic Initiatives - The company is actively pursuing strategic innovation and transformation, focusing on emerging smart hardware products to capture new business growth points[32]. - The company has established a strong competitive advantage in precision manufacturing and smart manufacturing capabilities, enhancing product quality and efficiency[29]. - The company maintains solid relationships with leading global technology and consumer electronics clients, leveraging these partnerships for continuous growth[32]. - The company has invested in R&D across various fields, integrating materials, structures, electronics, and software to enhance product development capabilities[31]. - The company plans to continue expanding its investment in new technologies and products to enhance market competitiveness[57]. Market and Product Development - The company experienced a net profit growth, attributed to the increasing demand for VR, gaming accessories, TWS wireless earphones, and smart wearable products[28]. - The company continues to focus on the development of precision components and smart hardware, particularly in the VR and gaming console sectors[37]. - The sales of smart hardware products surged by 121.32%, contributing significantly to revenue growth[41]. - The company’s main business segments include precision components, smart acoustic products, and smart hardware, catering to various consumer electronics applications[27]. Financial Management and Investments - The company reported a loss of ¥44,895,452.87 from fair value changes in trading financial assets and liabilities[23]. - The company’s total non-operating income and expenses amounted to ¥64,518,516.99 after accounting for tax and minority interests[23]. - Investment income amounted to ¥49,791,481.39, representing 2.16% of total profit, primarily from foreign exchange-related business settlements[45]. - The company’s total investment during the reporting period was ¥5,267,172,234.63, a 44.72% increase compared to ¥3,639,595,814.44 in the same period last year[54]. Risk Management - The company faces risks from macroeconomic factors, including inflation and geopolitical tensions, which may impact the global technology and consumer electronics sectors[73]. - The company is exposed to customer concentration risk, with a significant portion of revenue coming from a few core clients[75]. - The company is implementing measures to mitigate exchange rate risks due to a high proportion of revenue from overseas clients and imports settled in USD[76]. - The company has established a comprehensive risk management framework to monitor and report on derivative exposure and market price fluctuations[62]. Environmental and Social Responsibility - GoerTek Co., Ltd. received the "Provincial Green Factory" honor in June 2022 for its energy management practices aimed at reducing carbon emissions[98]. - In the first half of the year, GoerTek implemented measures that resulted in a total reduction of 19,393 tons of CO2e emissions through clean energy applications[98]. - The company aims to achieve an annual reduction of 26,163 tons of CO2e by enhancing energy efficiency and promoting energy-saving technologies[98]. - GoerTek has established a comprehensive environmental monitoring system, including third-party monitoring of environmental factors and online monitoring equipment for wastewater discharge[98]. Shareholder and Corporate Governance - The company plans not to distribute cash dividends or issue bonus shares for the reporting period[5]. - The employee stock ownership plan includes 1,349,600 shares held by 1,600 employees, representing 0.04% of the total share capital[89]. - The company has not reported any changes in the board of directors, supervisors, or senior management during the reporting period[83]. - The company did not experience any major litigation or arbitration matters during the reporting period[109]. Future Outlook - Future guidance indicates a cautious outlook for the remainder of 2022, with expectations of gradual recovery in demand[123]. - The company plans to continue internal reforms to enhance management capabilities and attract talent, aiming for a high level of strategic and operational management to match business growth and expansion[79]. - The company aims to improve operational efficiency and reduce costs in response to market challenges faced in the first half of 2022[123].