[Important Notes, Table of Contents, and Definitions](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) [Important Notes](index=2&type=section&id=%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company attributes its significant 2022 performance decline to market downturns and underutilized new production capacity - The significant performance decline and losses are mainly attributed to two factors: - **Market Impact**: A downturn in the consumer electronics and communications markets led to a drop in both volume and price for the company's main products, with shipments of piezoelectric quartz crystal components decreasing by **25.66% YoY**[3](index=3&type=chunk) - **Internal Impact**: Despite ongoing capacity expansion, the average capacity utilization of new production lines (e.g., the Chongqing project) was only **47%** in 2022[3](index=3&type=chunk) - The company plans no cash dividend, bonus shares, or capitalization of public reserves[6](index=6&type=chunk) [Table of Contents](index=4&type=section&id=%E7%9B%AE%E5%BD%95) The report follows a standard structure, covering corporate information, financial analysis, governance, and other key disclosures [Definitions](index=6&type=section&id=%E9%87%8A%E4%B9%89) This section defines key terms used in the report, including company names, reporting period, and core technical products [Company Profile and Key Financial Indicators](index=7&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) [Company Information and Contact Details](index=7&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E8%81%94%E7%B3%BB%E6%96%B9%E5%BC%8F) This section provides the company's basic corporate and contact information, including its stock code and key personnel [Key Accounting Data and Financial Indicators](index=8&type=section&id=%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company's 2022 financial performance deteriorated sharply, with revenue declining and net profit turning to a significant loss | Indicator | 2022 | 2021 | YoY Change | | :--- | :--- | :--- | :--- | | **Operating Revenue (CNY)** | 333,283,222.78 | 629,860,484.03 | -47.09% | | **Net Profit Attributable to Shareholders (CNY)** | -172,669,062.11 | 104,074,374.85 | -265.91% | | **Net Profit Attributable to Shareholders (Non-recurring Items Excluded) (CNY)** | -183,157,836.31 | 100,212,658.85 | -282.77% | | **Net Cash Flow from Operating Activities (CNY)** | 19,910,653.03 | 132,474,977.07 | -84.97% | | **Basic Earnings Per Share (CNY/Share)** | -0.6153 | 0.3961 | -255.34% | | **Weighted Average Return on Equity** | -15.67% | 10.88% | -26.55% | | **Total Assets (CNY)** | 1,872,131,181.35 | 1,981,073,033.64 | -5.50% | | **Net Assets Attributable to Shareholders (CNY)** | 991,497,786.38 | 1,188,196,248.34 | -16.55% | | Quarter | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue (CNY)** | 113,296,733.78 | 117,768,579.73 | 91,042,310.62 | 11,175,598.65 | | **Net Profit Attributable to Shareholders (CNY)** | -1,020,181.71 | 3,167,465.20 | -1,164,472.34 | -173,651,873.26 | - Non-recurring gains and losses in 2022 totaled **CNY 10.49 million**, primarily from government subsidies (CNY 9.29 million) and other non-operating income/expenses (CNY 4.15 million)[24](index=24&type=chunk)[25](index=25&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) [Industry Situation and Company Position](index=11&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E6%89%80%E5%A4%84%E8%A1%8C%E4%B8%9A%E6%83%85%E5%86%B5) The quartz crystal component industry benefits from national policies, with the company holding a leading domestic position - The industry benefits from national strategic plans, such as the "14th Five-Year Plan," which accelerates the deployment of 5G, IoT, Industrial Internet, and IoV, promoting the core electronic components industry[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) - The global quartz crystal component market is projected to grow from **$4.34 billion** in 2021 to **$5.68 billion** by 2028, at a CAGR of approximately **4.14%**, with automotive electronics, wearables, and IoT as the fastest-growing segments[34](index=34&type=chunk)[35](index=35&type=chunk) - The company is a national "Little Giant" enterprise, leading domestically in the mass production of small-sized MHz products and high-value-added TSX and TCXO products, with combined shipments reaching **167 million units** in 2022, up **0.68% YoY**[37](index=37&type=chunk)[38](index=38&type=chunk) - The company has mastered photolithography processes based on semiconductor technology, making it one of the few global manufacturers capable of mass-producing high-frequency 76.8MHz 1612-size thermal crystals certified by Qualcomm[39](index=39&type=chunk) [Principal Business and Operating Model](index=14&type=section&id=%E4%BA%8C%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company develops and sells quartz crystal components, with 2022 performance impacted by market downturns and low capacity utilization - The company's main products are SMD resonators, TCXO oscillators, and TSX thermal crystals, widely used in communications, automotive electronics, and consumer electronics[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) - The operating model involves centralized procurement, production-to-order manufacturing, and a sales model combining distribution and direct sales[44](index=44&type=chunk)[45](index=45&type=chunk)[46](index=46&type=chunk) - The 2022 performance decline was mainly due to: - Weak market demand leading to lower product prices and volumes, with total shipments of approximately **699 million units**, a **25.66% YoY** decrease[47](index=47&type=chunk) - The average capacity utilization of the Chongqing subsidiary's investment project was only about **47%**[47](index=47&type=chunk) [Core Competitiveness Analysis](index=16&type=section&id=%E4%B8%89%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core strengths lie in its advanced technology, product development, mass production capabilities, and first-mover market advantage - **Technology and Process Advantage**: Mastery of photolithography for MHz applications enables both miniaturization and high base frequency, overcoming the limitations of traditional mechanical grinding[49](index=49&type=chunk) - **Product Development Advantage**: Early domestic mass producer of miniaturized products like SMD2520, SMD2016, and SMD1612, with SMD1210 now available, alongside high-value products like TSX thermal crystals and TCXO oscillators[50](index=50&type=chunk) - **Mass Production and Supply Chain Advantage**: Mass production capability for mid-to-high-end products positions the company favorably for domestic substitution, driving local collaboration and breakthroughs in upstream materials like ultra-small bases and temperature-compensated ICs[51](index=51&type=chunk) - **First-Mover Market Advantage**: Strong partnerships with leading customers across various sectors enable timely and precise responses to product iteration demands, securing market opportunities[52](index=52&type=chunk) [Analysis of Main Business Operations](index=17&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) In 2022, revenue and net profit declined significantly, though the company advanced in smart manufacturing and R&D investment [Overview](index=17&type=section&id=4.1%20%E6%A6%82%E8%BF%B0) Despite poor 2022 results, the company advanced in smart manufacturing, increased R&D spending, and expanded into new markets - In 2022, the company was recognized as a "Dongguan Smart Manufacturing Demonstration Project," and its Chongqing subsidiary was named a "Chongqing Smart Factory"[55](index=55&type=chunk) - Despite the performance decline, R&D expenses increased by **7.69% YoY** to **CNY 31.32 million**, raising the R&D-to-revenue ratio to **9.40%**[56](index=56&type=chunk) - The company is expanding into emerging industries, having introduced products to automakers like BYD and GAC Motor, with mass shipments to BYD already underway[57](index=57&type=chunk)[58](index=58&type=chunk) [Revenue and Costs](index=19&type=section&id=4.2%20%E6%94%B6%E5%85%A5%E4%B8%8E%E6%88%90%E6%9C%AC) Revenue fell 47.09% to CNY 333 million, with the core electronic components business seeing its gross margin turn negative | Category | 2022 Revenue (CNY) | % of Total Revenue | YoY Change | | :--- | :--- | :--- | :--- | | **By Industry** | | | | | Electronic Components | 298,298,435.46 | 89.50% | -50.50% | | Software and IT Services | 34,984,787.32 | 10.50% | 28.28% | | **By Product** | | | | | SMD | 294,087,690.26 | 88.24% | -50.60% | | **By Region** | | | | | Mainland China | 232,599,780.51 | 69.79% | -19.37% | | Hong Kong, China | 33,404,729.93 | 10.02% | -66.69% | | By Industry | Operating Revenue (CNY) | Operating Cost (CNY) | Gross Margin | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | | Electronic Components | 298,298,435.46 | 332,916,337.47 | -11.61% | -58.83% | - Due to the industry cycle and weak consumer electronics demand, the production-to-sales ratio declined in 2022, leading to a **67.41% YoY** increase in year-end inventory[63](index=63&type=chunk) [Expenses](index=22&type=section&id=4.3%20%E8%B4%B9%E7%94%A8) Management expenses decreased due to the reversal of share-based payment fees, while financial expenses fell on higher exchange gains | Expense Item | 2022 (CNY) | 2021 (CNY) | YoY Change | Reason for Significant Change | | :--- | :--- | :--- | :--- | :--- | | Selling Expenses | 20,026,523.74 | 18,658,142.85 | 7.33% | Increased marketing and promotion fees | | Administrative Expenses | 49,603,927.53 | 69,898,722.23 | -29.03% | Reversal of share-based payment fees as performance targets were not met | | Financial Expenses | 16,592,175.43 | 18,899,390.15 | -12.21% | Increased foreign exchange gains | | R&D Expenses | 31,317,615.65 | 29,080,447.00 | 7.69% | Increased R&D projects and investment | [R&D Investment](index=22&type=section&id=4.4%20%E7%A0%94%E5%8F%91%E6%8A%95%E5%85%A5) R&D investment increased to 12.13% of revenue, focusing on high-frequency, miniaturized products for emerging markets | Indicator | 2022 | 2021 | 2020 | | :--- | :--- | :--- | :--- | | **R&D Investment (CNY)** | 40,413,205.17 | 35,465,110.10 | 30,415,775.66 | | **R&D Investment as % of Revenue** | 12.13% | 5.63% | 7.84% | | **Number of R&D Personnel** | 162 | 165 | - | | **R&D Personnel as % of Total** | 18.31% | 16.02% | - | - Key R&D projects include SMD1612 76.8MHz thermal crystals for Qualcomm platform phones, TCXOs for GPS modules, SMD1210 76.8MHz crystals for 5G, and high-spec SMD3225 crystals for automotive use, aiming to fill domestic gaps and enter high-end markets[70](index=70&type=chunk) [Cash Flow](index=25&type=section&id=4.5%20%E7%8E%B0%E9%87%91%E6%B5%81) Operating cash flow plummeted due to lower sales collections, while investment and financing cash flows also saw significant changes | Item | 2022 (CNY) | 2021 (CNY) | YoY Change | | :--- | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 19,910,653.03 | 132,474,977.07 | -84.97% | | **Net Cash Flow from Investing Activities** | -83,522,413.45 | -770,578,806.82 | 89.16% | | **Net Cash Flow from Financing Activities** | -1,004,558.85 | 708,536,851.96 | -100.14% | | **Net Increase in Cash and Cash Equivalents** | -62,933,012.56 | 69,696,520.43 | -190.30% | - The significant discrepancy between net operating cash flow (CNY 19.91 million) and net profit (-CNY 173 million) is mainly due to large non-cash expenses, including depreciation and amortization (CNY 111 million) and impairment provisions (CNY 58.61 million)[74](index=74&type=chunk) [Non-Main Business Operations](index=25&type=section&id=%E4%BA%94%E3%80%81%E9%9D%9E%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E6%83%85%E5%86%B5) Non-main business activities significantly impacted profits, driven by asset impairment losses of CNY 58.61 million | Item | Amount (CNY) | % of Total Profit | Explanation | | :--- | :--- | :--- | :--- | | Investment Income | -1,061,508.61 | 0.55% | Operating losses of joint ventures | | Asset Impairment | -58,613,523.22 | 30.34% | Impairment of goodwill, equipment, inventory, and accounts receivable | | Non-operating Income | 4,393,703.54 | -2.27% | Compensation income, etc | [Analysis of Assets and Liabilities](index=26&type=section&id=%E5%85%AD%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Total assets decreased by 5.50%, with a significant shift from construction in progress to fixed assets after project completion - The asset structure changed significantly, with a large decrease in construction in progress and a large increase in fixed assets, mainly due to the capitalization of installed and adjusted machinery and equipment[78](index=78&type=chunk) | Item | Year-end 2022 Amount (CNY) | % of Total Assets | Year-start 2022 Amount (CNY) | % of Total Assets | Change in Proportion | | :--- | :--- | :--- | :--- | :--- | :--- | | Fixed Assets | 994,444,606.48 | 53.12% | 844,304,214.65 | 42.62% | 10.50% | | Construction in Progress | 39,642,859.06 | 2.12% | 243,395,390.41 | 12.29% | -10.17% | | Short-term Borrowings | 365,876,110.90 | 19.54% | 232,087,510.23 | 11.72% | 7.82% | - As of the reporting period end, **CNY 553 million** of the company's assets were restricted, primarily fixed assets (CNY 457 million) and intangible assets (CNY 22 million) used as collateral for financing leases and loans[81](index=81&type=chunk) [Analysis of Investment](index=27&type=section&id=%E4%B8%83%E3%80%81%E6%8A%95%E8%B5%84%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) Total investment for the period was CNY 216 million, a sharp 72.64% decrease, with no major equity investments made - The investment amount for the reporting period was **CNY 216 million**, a significant decrease of **72.64%** from CNY 790 million in the previous year[82](index=82&type=chunk) - The company engaged in forward foreign exchange purchase transactions for hedging purposes to lock in the cost of raw materials settled in JPY, resulting in an actual loss of **CNY 227,200** during the period[85](index=85&type=chunk) [Analysis of Major Subsidiaries and Affiliates](index=29&type=section&id=%E4%B9%9D%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) The Chongqing production subsidiary reported a net loss of CNY 45.79 million, while the Hong Kong sales subsidiary was profitable | Company Name | Main Business | Total Assets (CNY) | Net Assets (CNY) | Operating Revenue (CNY) | Net Profit (CNY) | | :--- | :--- | :--- | :--- | :--- | :--- | | H.K. TFC INDUSTRIAL CO., LIMITED | Sales | 42,306,248.78 | 26,411,557.70 | 36,740,259.67 | 15,075,689.71 | | Guangzhou Chuangxiangyun Technology Co., Ltd. | Production, Sales, Service | 82,925,251.33 | 67,719,947.73 | 34,984,787.32 | 1,761,730.65 | | TFC Communication (Chongqing) Co., Ltd. | Production, Sales | 1,047,478,828.93 | 361,875,691.22 | 106,199,085.60 | -45,789,090.51 | [Future Outlook](index=30&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E6%9C%AA%E6%9D%A5%E5%8F%91%E5%B1%95%E7%9A%84%E5%B1%95%E6%9C%9B) The company plans to deepen management reform and business innovation in 2023 while acknowledging several key operational risks - **2023 Business Plan**: - **Management Reform**: Optimize organizational structure and adopt scientific assessment systems like KPI and OKR[94](index=94&type=chunk)[96](index=96&type=chunk) - **Business Innovation**: Spin off business units for independent accounting to foster multi-product line development[94](index=94&type=chunk)[96](index=96&type=chunk) - **Internal Optimization**: Launch a "decluttering" initiative to streamline internal systems and products[94](index=94&type=chunk)[96](index=96&type=chunk) - **Platform Building**: Develop a Shenzhen sales platform to leverage product platform effects[94](index=94&type=chunk)[96](index=96&type=chunk) - **Employee Incentives**: Introduce employee stock ownership platforms in select wholly-owned subsidiaries[94](index=94&type=chunk)[96](index=96&type=chunk) - **Key Risk Disclosures**: - **Macroeconomic Risk**: A global economic downturn could impact consumer electronics and other industries, affecting the company's performance[97](index=97&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - **Price Fluctuation Risk**: Increased market competition could lead to further product price declines, impacting gross margins[97](index=97&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - **Market Competition Risk**: Lagging behind market demand in technological R&D could put the company at a disadvantage[97](index=97&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - **Investment Project Risk**: New depreciation and amortization could reduce profits, and project benefits may not meet expectations[97](index=97&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - **Inventory and Accounts Receivable Risk**: Large year-end balances of inventory and accounts receivable pose risks of slow turnover and collection[97](index=97&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) [Corporate Governance](index=34&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) [Overview of Corporate Governance](index=34&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86%E7%9A%84%E5%9F%BA%E6%9C%AC%E7%8A%B6%E5%86%B5) The company's governance practices comply with relevant laws and regulations, ensuring operational independence from its controlling shareholder - The company's actual governance practices do not materially differ from the laws, regulations, and normative documents issued by the CSRC and Shenzhen Stock Exchange[106](index=106&type=chunk) - The company is independent from its controlling shareholder in terms of business, personnel, assets, organization, and finance, possessing a complete and independent business and operational capability[106](index=106&type=chunk)[111](index=111&type=chunk) [Directors, Supervisors, and Senior Management](index=36&type=section&id=%E4%B8%83%E3%80%81%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E5%92%8C%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E6%83%85%E5%86%B5) This section details the background, remuneration, and changes of key management personnel during the reporting period - During the reporting period, there were changes in the company's directors, supervisors, and senior management, including the election of Director Deng Youqiang and Supervisor Qin Yuzhen, and the departure of Supervisor Cai Fengqiong and Senior Manager Li Zongjie[117](index=117&type=chunk) | Name | Position | Pre-tax Remuneration from the Company (CNY 10,000) | | :--- | :--- | :--- | | Zhao Jiqing | Chairman | 27.35 | | Han Jiling | General Manager | 54.55 | | Jiang Jianwei | Deputy General Manager | 64.72 | | Deng Youqiang | Director, CFO | 25.18 | | Pan Yihua | Director, Board Secretary | 21.97 | | **Total** | -- | **398.4** | [Employee Situation](index=47&type=section&id=%E5%8D%81%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E5%91%98%E5%B7%A5%E6%83%85%E5%86%B5) At year-end, the company had 885 employees, with production and technical staff forming the largest professional groups | Professional Composition | Number of People | | :--- | :--- | | Production Personnel | 342 | | Sales Personnel | 49 | | Technical Personnel | 277 | | Finance Personnel | 19 | | Administrative Personnel | 198 | | **Total** | **885** | [Equity Incentive Plan](index=49&type=section&id=%E5%8D%81%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9D%83%E6%BF%80%E5%8A%B1%E8%AE%A1%E5%88%92) The second vesting period of the 2020 restricted stock plan was executed, while the third was forfeited due to unmet performance targets - In October 2022, the conditions for the second vesting period of the 2020 restricted stock incentive plan were met, allowing 29 eligible participants to vest 2.1 million shares, with 28 individuals ultimately vesting a total of 1.8 million shares[163](index=163&type=chunk) - As the company's 2022 performance did not meet the requirements for the third vesting period of the 2020 restricted stock incentive plan, previously accrued share-based payment expenses for this period were reversed[685](index=685&type=chunk) [Internal Control](index=52&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E7%9A%84%E5%86%85%E9%83%A8%E6%8E%A7%E5%88%B6%E5%88%B6%E5%BA%A6%E5%BB%BA%E8%AE%BE%E5%8F%8A%E5%AE%9E%E6%96%BD%E6%83%85%E5%86%B5) The company maintained effective internal controls over key operational areas, with no material weaknesses identified in its self-assessment - The company has established internal control systems covering all major operational and management aspects, including management of subsidiaries, investments, related-party transactions, and information disclosure[166](index=166&type=chunk)[168](index=168&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk)[174](index=174&type=chunk) - According to the internal control self-assessment report, which covered 100% of assets and revenue in the consolidated statements, no material or significant deficiencies were found in financial or non-financial reporting[188](index=188&type=chunk)[189](index=189&type=chunk) [Environmental and Social Responsibility](index=58&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB) [Environmental and Social Responsibility](index=58&type=section&id=%E7%8E%AF%E5%A2%83%E4%B8%8E%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB) The company complies with environmental regulations, protects stakeholder interests, and actively engages in social welfare and poverty alleviation - The company and its subsidiaries are not classified as major polluting entities and received no environment-related administrative penalties during the reporting period[192](index=192&type=chunk) - The company actively fulfills its social responsibilities, including protecting the rights of shareholders, employees, customers, and suppliers, and participating in public relations and social welfare initiatives[193](index=193&type=chunk)[194](index=194&type=chunk) - The company actively participates in poverty alleviation and rural revitalization, donating goods and funds worth over **CNY 130,680** to charities and schools in 2022, and employing 226 people from impoverished areas in Yunnan, Guizhou, and Sichuan[195](index=195&type=chunk) [Significant Matters](index=60&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) [Significant Related-Party Transactions](index=63&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E4%BA%A4%E6%98%93) The company engaged in a CNY 50 million financing lease transaction with a related party, exceeding the approved limit | Related Party | Transaction Type | Transaction Amount (CNY 10,000) | Approved Limit (CNY 10,000) | Exceeded Limit | | :--- | :--- | :--- | :--- | :--- | | Anhui Zhengqi Financial Leasing Co., Ltd. | Financing Lease Service | 5,000 | 10,000 | Yes | [Significant Guarantees](index=64&type=section&id=2%E3%80%81%E9%87%8D%E5%A4%A7%E6%8B%85%E4%BF%9D) The company provided guarantees totaling CNY 183 million for its subsidiaries, representing 18.43% of its net assets | Indicator | Amount (CNY 10,000) | | :--- | :--- | | Approved guarantee limit for subsidiaries during the period | 80,000 | | Actual guarantees provided to subsidiaries during the period | 18,275.32 | | Outstanding guarantee balance for subsidiaries at period-end | 18,275.32 | | Ratio of total actual guarantees to company's net assets | 18.43% | [Changes in Share Capital and Shareholders](index=67&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) [Changes in Share Capital](index=67&type=section&id=%E4%B8%80%E3%80%81%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) Total share capital increased by 1.62 million shares due to the vesting of restricted stocks under the 2020 incentive plan - Due to the listing and circulation of the first batch of vested shares from the second vesting period of the 2020 restricted stock incentive plan, the company's total share capital increased by **1,620,000 shares** to **280,624,251 shares**[231](index=231&type=chunk) [Shareholders and Ultimate Controller](index=70&type=section&id=%E4%B8%89%E3%80%81%E8%82%A1%E4%B8%9C%E5%92%8C%E5%AE%9E%E9%99%85%E6%8E%A7%E5%88%B6%E4%BA%BA%E6%83%85%E5%86%B5) The ultimate controller is Mr. Zhao Jiqing, and the controlling shareholder has a significant portion of its shares pledged | Shareholder Name | Shareholder Type | Shareholding Ratio | Shares Held at Period-end | Pledged/Frozen Status | | :--- | :--- | :--- | :--- | :--- | | Xinjiang Huilun Equity Investment Partnership (Limited Partnership) | Domestic Non-state-owned Legal Entity | 14.37% | 40,327,380 | Pledged 31,803,200 | | Zhao Jiqing | Domestic Natural Person | 5.35% | 15,000,000 | - | | Anhui Zhidao Investment Co., Ltd. | Domestic Non-state-owned Legal Entity | 4.97% | 13,950,000 | - | - The controlling shareholder, Xinjiang Huilun, and the ultimate controller, Zhao Jiqing, are parties acting in concert[240](index=240&type=chunk) [Information on Preferred Shares](index=75&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) [Preferred Shares](index=75&type=section&id=%E4%BC%98%E5%85%88%E8%82%A1) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[248](index=248&type=chunk) [Information on Bonds](index=76&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) [Bonds](index=76&type=section&id=%E5%80%BA%E5%88%B8) The company had no bonds outstanding during the reporting period - The company had no bond-related matters during the reporting period[250](index=250&type=chunk) [Financial Report](index=77&type=section&id=%E7%AC%AC%E5%8D%81%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) [Audit Report](index=77&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The auditor issued a standard unqualified opinion, highlighting revenue recognition and inventory provision as key audit matters - The audit opinion is a **standard unqualified opinion**[252](index=252&type=chunk) - Key audit matters include: 1. **Revenue Recognition**: As revenue is a key performance indicator, there is an inherent risk of management manipulating the timing of revenue recognition to meet specific targets[255](index=255&type=chunk)[256](index=256&type=chunk) 2. **Adequacy and Completeness of Inventory Write-down Provision**: Due to the material amount of inventory, the provision for write-downs involves significant management judgment[259](index=259&type=chunk) [Financial Statements](index=81&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section presents the complete financial statements, showing total assets of CNY 1.87 billion and a net loss of CNY 173 million | Key Items from Consolidated Balance Sheet | Dec 31, 2022 (CNY) | | :--- | :--- | | Total Assets | 1,872,131,181.35 | | Total Liabilities | 880,633,394.97 | | Total Equity Attributable to Parent Company | 991,497,786.38 | | Key Items from Consolidated Income Statement | 2022 (CNY) | | :--- | :--- | | Total Operating Revenue | 333,283,222.78 | | Total Operating Costs | 478,540,339.84 | | Total Profit | -193,199,813.93 | | Net Profit | -172,669,062.11 | | Key Items from Consolidated Cash Flow Statement | 2022 (CNY) | | :--- | :--- | | Net Cash Flow from Operating Activities | 19,910,653.03 | | Net Cash Flow from Investing Activities | -83,522,413.45 | | Net Cash Flow from Financing Activities | -1,004,558.85 | [Company Basic Information](index=103&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E5%9F%BA%E6%9C%AC%E6%83%85%E5%86%B5) The company is a high-tech enterprise specializing in quartz crystal components, with six wholly-owned subsidiaries - The company's main business is quartz crystal components, with key products including SMD resonators, TSX thermal crystals, and TCXO oscillators[310](index=310&type=chunk) - A total of 6 wholly-owned subsidiaries were included in the scope of the consolidated financial statements for the period[312](index=312&type=chunk) [Significant Accounting Policies and Estimates](index=104&type=section&id=%E4%BA%94%E3%80%81%E9%87%8D%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%94%BF%E7%AD%96%E5%8F%8A%E4%BC%9A%E8%AE%A1%E4%BC%B0%E8%AE%A1) This section details the accounting policies for key areas like revenue recognition and financial instruments, including recent changes - **Revenue Recognition**: Revenue is recognized when the customer obtains control of the related goods or services, typically upon customer sign-off for domestic sales and upon completion of customs clearance for overseas sales[466](index=466&type=chunk)[470](index=470&type=chunk) - **Financial Instrument Impairment**: Impairment of financial assets measured at amortized cost is based on expected credit losses, with a simplified approach for accounts receivable, measuring the loss provision at an amount equal to lifetime expected credit losses[371](index=371&type=chunk)[372](index=372&type=chunk) - **R&D Expenditures**: Research-phase expenditures are expensed as incurred, while development-phase expenditures are capitalized if specific criteria are met[440](index=440&type=chunk)[441](index=441&type=chunk)[442](index=442&type=chunk) - **Changes in Accounting Policies**: The company has amended its accounting policies regarding the "sale of products before fixed assets reach their intended use" and the "judgment of onerous contracts" in accordance with Interpretations No. 15 and No. 16 of the Accounting Standards for Business Enterprises[481](index=481&type=chunk) [Notes to Consolidated Financial Statement Items](index=143&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) Key balance sheet items include significant provisions for bad debt, inventory write-downs, and goodwill impairment | Item | Year-end Gross Book Value (CNY) | Impairment/Write-down Provision (CNY) | Net Book Value (CNY) | | :--- | :--- | :--- | :--- | | Accounts Receivable | 129,334,963.25 | 22,019,512.49 | 107,315,450.76 | | Inventory | 366,356,557.81 | 38,615,828.23 | 327,740,729.58 | | Fixed Assets | 1,797,325,889.31 | 55,298,997.25 | 994,444,606.48 | | Goodwill | 204,093,223.96 | 199,959,254.34 | 4,133,969.62 | - Restricted cash and cash equivalents at year-end amounted to **CNY 73.52 million**, primarily serving as deposits for letters of credit, cash pools, and forward foreign exchange contracts[489](index=489&type=chunk) - The goodwill impairment test indicated that the recoverable amount of the asset group related to Guangzhou Chuangxiangyun Technology Co., Ltd. was lower than its carrying amount, resulting in a goodwill impairment provision of **CNY 3.21 million** for the period[594](index=594&type=chunk)[599](index=599&type=chunk)

[Important Notice, Table of Contents and Definitions](index=2&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA%E3%80%81%E7%9B%AE%E5%BD%95%E5%92%8C%E9%87%8A%E4%B9%89) This section provides important notices, the table of contents, and definitions relevant to the report [Company Profile and Key Financial Indicators](index=6&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B%E5%92%8C%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) This section introduces the company and presents its key financial performance metrics [Company Profile](index=6&type=section&id=%E4%B8%80%E3%80%81%E5%85%AC%E5%8F%B8%E7%AE%80%E4%BB%8B) Guangdong Huilun Crystal Technology Co., Ltd. (stock code: 300460) is a company listed on the Shenzhen Stock Exchange, with Zhao Jiqing as its legal representative Company Information | Item | Content | | :--- | :--- | | **Stock Abbreviation** | Huilun Crystal | | **Stock Code** | 300460 | | **Listing Exchange** | Shenzhen Stock Exchange | | **Full Company Name** | Guangdong Huilun Crystal Technology Co., Ltd. | | **Legal Representative** | Zhao Jiqing | [Key Accounting Data and Financial Indicators](index=7&type=section&id=%E5%9B%9B%E3%80%81%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) The company achieved significant performance improvement during the reporting period, with revenue up 58.73% and net profit attributable to shareholders turning profitable, increasing by 107.72% Key Financial Indicators | Key Financial Indicator | Current Period (RMB) | Prior Year Period (RMB) | YoY Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 287,395,037.34 | 181,064,044.80 | 58.73% | | Net Profit Attributable to Listed Company Shareholders | 2,581,356.79 | -33,445,651.68 | 107.72% | | Net Profit Attributable to Parent Company Shareholders (Excluding Non-recurring Items) | -4,931,900.19 | -49,434,367.55 | 90.02% | | Net Cash Flow from Operating Activities | 33,351,169.69 | 14,473,646.32 | 130.43% | | Basic Earnings Per Share (RMB/share) | 0.01 | -0.12 | 108.33% | | Weighted Average Return on Net Assets | 0.31% | -3.24% | Increased by 3.53 percentage points | | **Asset Status** | **End of Current Period (RMB)** | **End of Prior Year (RMB)** | **YoY Change** | | Total Assets | 1,726,572,662.79 | 1,782,210,443.43 | -3.12% | | Net Assets Attributable to Listed Company Shareholders | 826,970,379.83 | 888,850,227.80 | -6.96% | - During the reporting period, the company's non-recurring gains and losses totaled **RMB 7.51 million**, primarily from government subsidies, significantly contributing to current net profit[27](index=27&type=chunk)[28](index=28&type=chunk) [Management Discussion and Analysis](index=9&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E4%B8%8E%E5%88%86%E6%9E%90) This section provides management's perspective on the company's operations, financial condition, and future outlook [Principal Businesses Engaged in by the Company During the Reporting Period](index=9&type=section&id=%E4%B8%80%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%85%AC%E5%8F%B8%E4%BB%8E%E4%BA%8B%E7%9A%84%E4%B8%BB%E8%A6%81%E4%B8%9A%E5%8A%A1) The company specializes in the R&D, production, and sales of quartz crystal components, benefiting from strategic national support and growing demand from emerging applications - The company primarily engages in the research, development, production, and sales of quartz crystal components, falling under the "Computer, Communication, and Other Electronic Equipment Manufacturing" industry[30](index=30&type=chunk) Global Quartz Crystal Component Market Forecast | Market Forecast | 2023 Scale (USD) | 2030 Estimated Scale (USD) | 2024-2030 CAGR | | :--- | :--- | :--- | :--- | | Global Quartz Crystal Components | 3.576 billion | 7.326 billion | 10.26% | | **Sub-Application Areas** | | | **2024-2030 CAGR** | | Automotive Electronics | 712 million | 1.641 billion | 12.26% | | Wearable Devices | 367 million | 920 million | 13.19% | | IoT | 421 million | 999 million | 12.70% | - The company's high-value-added products, **TSX thermal crystals and TCXO oscillators**, had a combined shipment volume exceeding **214 million units** in the first half of the year, a year-on-year increase of approximately **94.58%**, becoming a core supplier in fields such as satellite communication mobile phones[47](index=47&type=chunk) - The company's performance in the first half of 2024 primarily benefited from the recovery in demand in the consumer electronics and communication markets, leading to increased orders and improved capacity utilization, forming economies of scale[59](index=59&type=chunk) Operating revenue reached **RMB 287 million**, a year-on-year increase of **58.73%**, and net profit attributable to parent company shareholders was **RMB 2.58 million**, a year-on-year increase of **107.72%**[60](index=60&type=chunk) [Analysis of Core Competencies](index=16&type=section&id=%E4%BA%8C%E3%80%81%E6%A0%B8%E5%BF%83%E7%AB%9E%E4%BA%89%E5%8A%9B%E5%88%86%E6%9E%90) The company's core competencies include advanced lithography technology, rapid product development, efficient digital manufacturing, and strong market access with key IC platform certifications - The company has mastered lithography process production technology, enabling the production of high-fundamental frequency, miniaturized MHz quartz crystal wafers, breaking through the limitations of traditional mechanical grinding[61](index=61&type=chunk) - The company is currently the **only enterprise in mainland China** to be included in MediaTek (MTK) mobile chip reference design list, and the **first crystal oscillator manufacturer** to be included in Qualcomm's automotive-grade chip certification reference design list[50](index=50&type=chunk)[67](index=67&type=chunk) - The company has achieved large-scale, high-quality, and high-efficiency mass production of mid-to-high-end products such as miniaturized SMD resonators, TCXO oscillators, and TSX thermal crystals through the construction of a digital factory[65](index=65&type=chunk) [Analysis of Principal Business](index=18&type=section&id=%E4%B8%89%E3%80%81%E4%B8%BB%E8%90%A5%E4%B8%9A%E5%8A%A1%E5%88%86%E6%9E%90) The company's principal business showed strong performance with significant revenue growth, improved cost control, and robust operating cash flow due to market recovery Principal Business Performance | Item | Current Period (RMB) | Prior Year Period (RMB) | YoY Change | Main Reasons for Change | | :--- | :--- | :--- | :--- | :--- | | **Operating Revenue** | 287,395,037.34 | 181,064,044.80 | 58.73% | Market demand recovery, order growth | | **Operating Cost** | 221,970,688.39 | 160,882,425.98 | 37.97% | Increased capacity utilization, economies of scale | | **Selling Expenses** | 10,537,875.78 | 13,698,584.67 | -23.07% | Decrease in advertising and promotional expenses | | **Net Cash Flow from Operating Activities** | 33,351,169.69 | 14,473,646.32 | 130.43% | Increase in operating revenue, increased sales collection | Revenue and Cost by Product | Product | Operating Revenue (RMB) | Operating Cost (RMB) | Gross Margin | Revenue YoY | Cost YoY | Gross Margin YoY | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | SMD | 274,040,528.55 | 213,886,665.52 | 21.95% | 63.99% | 39.68% | Increased by 13.59 percentage points | [Analysis of Assets and Liabilities](index=19&type=section&id=%E4%BA%94%E3%80%81%E8%B5%84%E4%BA%A7%E5%8F%8A%E8%B4%9F%E5%80%BA%E7%8A%B6%E5%86%B5%E5%88%86%E6%9E%90) The company's asset and liability structure remained stable, with an increase in inventory proportion and certain assets restricted due to collateral or guarantees - Inventory as a percentage of total assets increased from **15.49%** at the end of the previous year to **19.31%**, while fixed assets decreased from **52.58%** to **49.88%**[77](index=77&type=chunk) Restricted Assets | Restricted Asset Item | Book Value at Period End (RMB) | Reason for Restriction | | :--- | :--- | :--- | | Monetary Funds | 31,107,361.53 | Margin | | Fixed Assets | 912,446,979.68 | Finance lease, building mortgage | | Construction in Progress | 34,266,186.78 | Loan collateral | [Analysis of Major Holding and Participating Companies](index=21&type=section&id=%E5%85%AB%E3%80%81%E4%B8%BB%E8%A6%81%E6%8E%A7%E8%82%A1%E5%8F%82%E8%82%A1%E5%85%AC%E5%8F%B8%E5%88%86%E6%9E%90) Among the company's major subsidiaries, Huilun Crystal (Chongqing) Technology Co., Ltd. recorded a significant net loss despite being the largest in asset size, while others were profitable Major Subsidiaries' Financial Performance | Company Name | Type | Total Assets (RMB) | Net Assets (RMB) | Operating Revenue (RMB) | Net Profit (RMB) | | :--- | :--- | :--- | :--- | :--- | :--- | | Huilun (Hong Kong) Industrial Co., Ltd. | Subsidiary | 31,565,577.87 | 23,926,181.96 | 7,233,414.00 | -1,532,275.79 | | Guangzhou Chuangxiangyun Technology Co., Ltd. | Subsidiary | 93,487,367.50 | 72,087,522.29 | 12,036,028.57 | 578,648.03 | | Huilun Crystal (Chongqing) Technology Co., Ltd. | Subsidiary | 1,094,774,969.24 | 387,106,165.05 | 115,783,764.31 | -31,520,339.93 | [Risks Faced by the Company and Countermeasures](index=22&type=section&id=%E5%8D%81%E3%80%81%E5%85%AC%E5%8F%B8%E9%9D%A2%E4%B8%B4%E7%9A%84%E9%A3%8E%E9%99%A9%E5%92%8C%E5%BA%94%E5%AF%B9%E6%8E%AA%E6%96%BD) The company faces risks from macroeconomic downturns, market competition, price fluctuations, and operational challenges, which it plans to address through strategic expansion, R&D, and improved management - **Macroeconomic market risk**: A global economic downturn could impact industries like consumer electronics, affecting the company's performance, which the company plans to address by expanding business areas and reducing costs and increasing efficiency[89](index=89&type=chunk) - **Increased market competition risk**: Technological iteration and new entrants may intensify competition, which the company will counter by increasing R&D investment and deepening customer cooperation[90](index=90&type=chunk) - **Accounts receivable recovery risk**: A large balance of accounts receivable poses liquidity risk, which the company will manage by strengthening monitoring and contract enforcement[94](index=94&type=chunk) - **Slow inventory turnover risk**: Inventory at period-end increased by **22.93%** compared to the beginning of the period, which the company will address by strengthening production-sales coordination and promoting timely customer pickup[95](index=95&type=chunk) [Corporate Governance](index=25&type=section&id=%E7%AC%AC%E5%9B%9B%E8%8A%82%20%E5%85%AC%E5%8F%B8%E6%B2%BB%E7%90%86) This section details changes in the company's senior management and its profit distribution plan for the reporting period [Changes in Senior Management and Profit Distribution](index=25&type=section&id=%E4%BA%8C%E3%80%81%E5%85%AC%E5%8F%B8%E8%91%A3%E4%BA%8B%E3%80%81%E7%9B%91%E4%BA%8B%E3%80%81%E9%AB%98%E7%BA%A7%E7%AE%A1%E7%90%86%E4%BA%BA%E5%91%98%E5%8F%98%E5%8A%A8%E6%83%85%E5%86%B5) Vice General Manager Jiang Jianwei resigned during the reporting period, and the company plans no profit distribution for the first half of 2024 - On January 15, 2024, Vice General Manager **Jiang Jianwei** was dismissed due to resignation[100](index=100&type=chunk) - The company's 2024 semi-annual profit distribution plan is to **not distribute cash dividends**, **not send bonus shares**, and **not convert capital reserves into share capital**[101](index=101&type=chunk) [Environmental and Social Responsibility](index=26&type=section&id=%E7%AC%AC%E4%BA%94%E8%8A%82%20%E7%8E%AF%E5%A2%83%E5%92%8C%E7%A4%BE%E4%BC%9A%E8%B4%A3%E4%BB%BB) The company is not a key polluting entity and actively fulfills its environmental and social responsibilities, ensuring stakeholder rights and legal compliance [Environmental and Social Responsibility Practices](index=26&type=section&id=%E4%B8%80%E3%80%81%E9%87%8D%E5%A4%A7%E7%8E%AF%E4%BF%9D%E9%97%AE%E9%A2%98%E6%83%85%E5%86%B5) The company is not a key polluting entity and actively fulfills its environmental and social responsibilities, ensuring stakeholder rights and legal compliance - The company is not classified as a key polluting entity by environmental protection authorities and received no administrative penalties for environmental issues during the reporting period[104](index=104&type=chunk) - In terms of social responsibility, the company fully safeguards the rights and interests of shareholders, employees, suppliers, and customers, actively participates in social welfare, and adheres to legal tax compliance[104](index=104&type=chunk)[105](index=105&type=chunk)[106](index=106&type=chunk) [Significant Matters](index=27&type=section&id=%E7%AC%AC%E5%85%AD%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section covers significant events including related party transactions, guarantees, and major subsidiary developments [Occupation of Funds by Controlling Shareholder and Related Party Transactions](index=27&type=section&id=%E4%BA%8C%E3%80%81%E6%8E%A7%E8%82%A1%E8%82%A1%E4%B8%9C%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%B3%E8%81%94%E6%96%B9%E5%AF%B9%E4%B8%8A%E5%B8%82%E5%85%AC%E5%8F%B8%E7%9A%84%E9%9D%9E%E7%BB%8F%E8%90%A5%E6%80%A7%E5%8D%A0%E7%94%A8%E8%B5%84%E9%87%91%E6%83%85%E5%86%B5) The controlling shareholder occupied company funds, and there are outstanding related party receivables and payables Controlling Shareholder Fund Occupation | Occupying Party | Occupied Amount (RMB million) | Percentage of Latest Audited Net Assets | | :--- | :--- | :--- | | Xinjiang Huilun Equity Investment Partnership (Limited Partnership) | 59.47 | 7.20% | Related Party Receivables and Payables | Related Party | Related Party Relationship | Nature of Debt | Balance at Period End (RMB million) | | :--- | :--- | :--- | :--- | | **Receivables** | | | | | Shenzhen Ruicheng Weiye Technology Co., Ltd. | Minority shareholder of subsidiary | Investment in subsidiary | 1.75 | | **Payables** | | | | | Xinjiang Huilun Equity Investment Partnership (Limited Partnership) | Controlling shareholder | Loan | 33.63 | [Significant Guarantees](index=30&type=section&id=2%E3%80%81%E9%87%8D%E5%A4%A7%E6%8B%85%E4%BF%9D) The company provided significant guarantees primarily to its subsidiaries, totaling RMB 448.27 million, representing 54.21% of its net assets Guarantee Information | Guarantee Situation | Amount (RMB million) | | :--- | :--- | | Total approved guarantee limit for subsidiaries during the reporting period | 1,000 | | Total actual guarantee balance for subsidiaries at period-end | 448.27 | | Percentage of total actual guarantee to company's net assets | 54.21% | [Significant Matters of Subsidiaries](index=33&type=section&id=%E5%8D%81%E5%9B%9B%E3%80%81%E5%85%AC%E5%8F%B8%E5%AD%90%E5%85%AC%E5%8F%B8%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A1%B9) Two significant subsidiary matters, including an equity transfer and a capital increase, are still pending completion - The company intends to transfer **40% equity** in its subsidiary Chuangxiangyun to a related party, but as of the report disclosure date, the equity transfer payment has not yet been made[135](index=135&type=chunk) - The wholly-owned subsidiary Shenzhen Huilun plans to introduce an employee stock ownership platform for capital increase and share expansion, but as of the report disclosure date, the capital increase has not yet been completed[136](index=136&type=chunk) [Changes in Shares and Shareholder Information](index=34&type=section&id=%E7%AC%AC%E4%B8%83%E8%8A%82%20%E8%82%A1%E4%BB%BD%E5%8F%98%E5%8A%A8%E5%8F%8A%E8%82%A1%E4%B8%9C%E6%83%85%E5%86%B5) This section details the company's share capital changes and information on its shareholders [Shareholder Information](index=35&type=section&id=%E4%B8%89%E3%80%81%E5%85%AC%E5%8F%B8%E8%82%A1%E4%B8%9C%E6%95%B0%E9%87%8F%E5%8F%8A%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5) As of the reporting period end, the company had 30,113 common shareholders, with significant portions of shares held by the controlling shareholder and actual controller pledged or frozen - As of the end of the reporting period, the company had **30,113 common shareholders**[141](index=141&type=chunk) Major Shareholders' Holdings | Shareholder Name | Shareholding Percentage | Number of Shares Held | Share Status | | :--- | :--- | :--- | :--- | | Xinjiang Huilun Equity Investment Partnership (Limited Partnership) | 14.36% | 40,327,380 | Pledged 19,803,200 shares, Frozen 933,402 shares | | Zhao Jiqing | 5.34% | 15,000,000 | Pledged 4,750,000 shares | | Shijin International Limited | 3.23% | 9,079,723 | Pledged 5,000,000 shares | [Information on Preferred Shares](index=38&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section confirms the absence of preferred shares during the reporting period [Preferred Share Information](index=38&type=section&id=%E7%AC%AC%E5%85%AB%E8%8A%82%20%E4%BC%98%E5%85%88%E8%82%A1%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no preferred shares during the reporting period - The company had no preferred shares during the reporting period[147](index=147&type=chunk) [Information on Bonds](index=39&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) This section confirms the absence of bond-related matters during the reporting period [Bond Information](index=39&type=section&id=%E7%AC%AC%E4%B9%9D%E8%8A%82%20%E5%80%BA%E5%88%B8%E7%9B%B8%E5%85%B3%E6%83%85%E5%86%B5) The company had no bond-related matters during the reporting period - The company had no bond-related matters during the reporting period[149](index=149&type=chunk) [Financial Report](index=40&type=section&id=%E7%AC%AC%E5%8D%81%E8%8A%82%20%E8%B4%A2%E5%8A%A1%E6%8A%A5%E5%91%8A) This section presents the company's financial statements and related notes for the reporting period [Audit Report](index=40&type=section&id=%E4%B8%80%E3%80%81%E5%AE%A1%E8%AE%A1%E6%8A%A5%E5%91%8A) The company's semi-annual financial report is unaudited - The company's semi-annual financial report is unaudited[151](index=151&type=chunk) [Financial Statements](index=40&type=section&id=%E4%BA%8C%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8) This section provides the company's unaudited consolidated and parent company financial statements, including balance sheets, income statements, cash flow statements, and statements of changes in owners' equity [Consolidated Balance Sheet](index=40&type=section&id=1%E3%80%81%E5%90%88%E5%B9%B6%E8%B5%84%E4%BA%A7%E8%B4%9F%E5%80%BA%E8%A1%A8) As of June 30, 2024, the company's total assets were RMB 1.73 billion, total liabilities were RMB 898.33 million, and total owners' equity attributable to the parent company was RMB 826.97 million Consolidated Balance Sheet Summary | Item | Balance at Period End (RMB) | Balance at Period Beginning (RMB) | | :--- | :--- | :--- | | **Total Assets** | 1,726,572,662.79 | 1,721,906,206.72 | | **Total Liabilities** | 898,327,765.01 | 896,200,036.13 | | **Total Owners' Equity** | 828,244,897.78 | 825,706,170.59 | [Consolidated Income Statement](index=44&type=section&id=3%E3%80%81%E5%90%88%E5%B9%B6%E5%88%A9%E6%B6%A6%E8%A1%A8) In the first half of 2024, the company achieved total operating revenue of RMB 287.40 million, total operating costs of RMB 293.57 million, total profit of RMB 2.67 million, and net profit attributable to parent company shareholders of RMB 2.58 million Consolidated Income Statement Summary | Item | 2024 Half-Year (RMB) | 2023 Half-Year (RMB) | | :--- | :--- | :--- | | **Total Operating Revenue** | 287,395,037.34 | 181,064,044.80 | | **Total Operating Cost** | 293,571,993.52 | 232,540,488.78 | | **Total Profit** | 2,668,231.61 | -33,445,633.09 | | **Net Profit** | 2,538,727.19 | -33,445,651.68 | | **Net Profit Attributable to Parent Company Shareholders** | 2,581,356.79 | -33,445,651.68 | [Consolidated Cash Flow Statement](index=48&type=section&id=5%E3%80%81%E5%90%88%E5%B9%B6%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) In the first half of 2024, net cash flow from operating activities significantly increased to RMB 33.35 million, while investing and financing activities resulted in net outflows Consolidated Cash Flow Statement Summary | Item | 2024 Half-Year (RMB) | 2023 Half-Year (RMB) | | :--- | :--- | :--- | | **Net Cash Flow from Operating Activities** | 33,351,169.69 | 14,473,646.32 | | **Net Cash Flow from Investing Activities** | -4,433,937.98 | -18,864,620.26 | | **Net Cash Flow from Financing Activities** | -49,645,203.33 | -10,284,510.19 | | **Net Increase in Cash and Cash Equivalents** | -18,805,115.42 | -13,843,160.72 | [Notes to Consolidated Financial Statements](index=100&type=section&id=%E4%B8%83%E3%80%81%E5%90%88%E5%B9%B6%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E6%B3%A8%E9%87%8A) This section provides detailed explanations for various items in the consolidated financial statements, including the composition, changes, and impairment of major assets and liabilities, as well as breakdowns of income, costs, and expenses

Group 1 - The A-share photolithography machine (gel) concept has seen a short-term rise, with Dongcai Technology hitting the daily limit and achieving two consecutive boards in three days [1] - Chip Microelectronics has increased by over 8%, indicating strong market interest in the sector [1] - Other stocks such as Yake Technology, Feikai Materials, Shengjian Technology, and Huilun Crystal have also experienced upward movement, reflecting a broader trend in the industry [1]

Core Viewpoint - The PCB sector, particularly companies related to computing power and data centers, is experiencing significant activity, with notable interest from social security funds in specific companies [1]. Group 1: Company Highlights - Guanghe Technology is the leading domestic server PCB supplier in China, with products used in high-performance computing servers, AI computing servers, storage servers, and core data center equipment [3]. - Aoshikang also focuses on PCBs, with applications in data centers, servers, AIPC, communication and network devices, and automotive electronics [10]. Group 2: Fund Holdings - In the first quarter, social security funds made new investments in Guanghe Technology, acquiring approximately 500,000 shares, making it the sixth largest circulating shareholder [4]. - Aoshikang saw new investments from social security funds, with two funds becoming the eighth and ninth largest circulating shareholders [11]. Group 3: Financial Performance - Guanghe Technology has shown consistent revenue growth for eight consecutive years, with a total increase of 130% over the last five years, averaging 26% annually [7]. - The company's net profit, excluding non-recurring items, has surged from 120 million in 2020 to 678 million in 2024, reflecting a 465% increase over five years, averaging close to 100% annual growth [9]. - Aoshikang's revenue growth over five years is 55%, averaging 11% annually, which is lower compared to Guanghe Technology [13]. - Aoshikang's net profit growth is limited, with a forecast of revenue increase without profit growth in 2024, attributed to rising sales expenses [15].

证券代码：300460 证券简称：惠伦晶体 公告编号：2025-042 2、股东累计质押股份情况 广东惠伦晶体科技股份有限公司 关于实际控制人部分股权质押的公告 本公司及董事会全体成员保证提供的信息内容真实、准确、完整， 没有虚假记载、 误导性陈述或重大遗漏。 重要内容提示： •截至本公告披露日，广东惠伦晶体科技股份有限公司（以下简称"公司"） 实际控制人赵积清先生持有的公司股份总数为 15,000,000 股（占公司总股本的 5.34%），累计质押的公司股份为 12,733,800 股（占其所持公司股份总数的 84.89%， 占公司总股本的 4.53%）。 一、股东股份质押基本情况 公司于近日接到公司实际控制人赵积清先生的通知，获悉其所持有公司的部 分股份被质押，具体情况如下： 1、股东股份质押基本情况 | 股东名 称 | 是否为控 股股东或 | 本次质押 | 占其所持 | 占公司总 | 是否 | 是否 为补 | 质押起 | 质押到期 | | 质押 用途 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | 第一大 ...

证券代码：300460 证券简称：惠伦晶体 公告编号：2025-041 广东惠伦晶体科技股份有限公司 2024 年度股东会决议公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚 假记载、误导性陈述或重大遗漏。 特别提示： 1、本次股东会不存在否决议案的情形。 2、本次股东会不涉及变更以往股东会已通过的决议。 一、会议召开和出席情况 （一）会议召开情况 1、会议召开时间： （1）现场会议时间：2025年5月21日（星期三）15:00 （2）网络投票时间：通过深圳证券交易所交易系统进行网络投票的具体时 间为：2025年5月21日上午9:15-9:25、9:30-11:30，下午13:00-15:00；通过深 圳证券交易所互联网投票系统投票的具体时间为：2025年5月21日9:15-15:00。 2、现场会议召开地点：广东省东莞市黄江镇黄江东环路68号公司会议室 3、会议召集人：公司第五届董事会 4、会议主持人：公司董事长赵剑华先生 5、会议召开方式：本次股东会采取现场投票和网络投票相结合的方式召开。 6、本次股东会会议的召集、召开与表决程序符合《中华人民共和国公司法》 《上市公司股东大会规则》 ...

n Law Ultices 中国广东省深圳市福田区金田路 4028 号荣超经贸中心 28、29 层 邮政编码: 518035 28&29 Floor, Landmark, No.4028 Jintian Road, Futian District, Shenzhen 518035, P.R.C. Fax: 0755-33988199 Tel: 0755-33988188 北京市君泽君（深圳）律师事务所 关于广东惠伦晶体科技股份有限公司 2024年度股东会的 法律意见书 致:广东惠伦晶体科技股份有限公司 本所及经办律师依据《证券法》《律师事务所从事证券法律业务管理办法》和 北京 · 深圳· 上海 · 广州·天津·成都 · 南京 · 长沙 · 长春 · 珠海 · 海口· 昆明 · 沈阳· 石家庄 · 郑州 香港 · 南昌 · 杭州 · 济南 · 福州 · 合肥 · 西安 · 大连 · 武汉 lunZelun Law Offices 《律师事务所证券法律业务执业规则(试行)》等规定及本法律意见书出具日以前已 经发生或者存在的事实,严格履行了法定职责,遵循了勤勉尽责和诚实信用原则, 进行了充分的核查验证,保证本法律意 ...

Core Viewpoint - The termination of the share transfer agreement between Huineng Crystal and Zhongzheng Qianyuan Jin Youyuan No. 1 Private Securities Investment Fund highlights the ongoing financial struggles of Huineng Crystal and raises concerns about the future of its actual controller, Zhao Jiqing [2][3][8]. Group 1: Share Transfer Agreement - Huineng Crystal's controlling shareholder, Xinjiang Huineng, and actual controller Zhao Jiqing decided to terminate a previously signed share transfer agreement involving 14.04 million shares, accounting for 5% of the company's total share capital [2]. - The planned share transfer included 9.79 million shares from the controlling shareholder (3.49%), 3.67 million shares from the actual controller (1.31%), and 290,000 shares from the directors (0.10%) [2]. - The private fund had already paid a total of 118 million yuan for the shares, which must be refunded by May 15, 2025, with specific amounts designated for each shareholder [4]. Group 2: Financial Performance and Losses - Huineng Crystal has accumulated losses exceeding 450 million yuan since its listing, with a record loss of 202 million yuan reported in 2024 [2][9]. - The company's revenue has significantly declined from over 400 million yuan annually before its IPO to around 300 million yuan, with net profits turning into substantial losses [9]. - The losses are attributed to poor recovery in the consumer electronics sector, intense market competition, and continuous declines in product sales prices, alongside significant asset impairments [9]. Group 3: Regulatory Issues - The termination of the share transfer agreement coincided with the announcement of an investigation by the China Securities Regulatory Commission (CSRC) into Huineng Crystal and Zhao Jiqing for suspected violations of information disclosure regulations [2][7]. - Following the announcement of the investigation, Huineng Crystal's stock price plummeted, experiencing declines of 20% and 10.31% over two consecutive days [7].

证券代码：300460 证券简称：惠伦晶体 公告编号：2025-040 广东惠伦晶体科技股份有限公司 关于控股股东部分股权质押的公告 本公司及董事会全体成员保证提供的信息内容真实、准确、完整， 没有虚假记载、 误导性陈述或重大遗漏。 重要内容提示： •截至本公告披露日，公司控股股东新疆惠伦股权投资合伙企业（有限合伙） （以下简称"新疆惠伦"）持有的公司股份总数为 40,327,380 股（占公司总股 本的 14.36%），累计质押的公司股份为 30,974,830 股（占其所持公司股份总数 的 76.81%，占公司总股本的 11.03%）。 一、上市公司股份质押 1、本次股份质押基本情况 公司于近日接到公司控股股东新疆惠伦的通知，获悉其所持有公司的部分股 份被质押，具体情况如下： | 股东名 | 是否为控 股股东或 | 本次质押 | 占其所持 | 占公司总 | 是否 | 是否 为补 | 质押起 | 质押到期 | | 质押 | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 称 | 第一大股 东及其一 | 数量（股） | ...

证券代码：300460 证券简称：惠伦晶体 公告编号：2025-039 关于股东终止协议转让公司部分股份的公告 公司控股股东、实际控制人、董事韩巧云女士、董事邢越先生及受让方中证乾元金有 缘 1 号私募证券投资基金保证向本公司提供的信息内容真实、准确、完整，没有虚假记载、 误导性陈述或重大遗漏。 广东惠伦晶体科技股份有限公司 3、为保护金有缘 1 号权益，确保新疆惠伦及赵积清向金有缘 1 号及时退还 股份转让价款，新疆惠伦、赵积清同意将其所持有的部分上市公司股份质押给中 证乾元资本管理有限公司（代表金有缘 1 号）。 广东惠伦晶体科技股份有限公司（以下简称"公司"）收到控股股东新疆惠 伦股权投资合伙企业（有限合伙）（以下简称"新疆惠伦"）、实际控制人赵积 清先生、董事韩巧云女士、董事邢越先生的通知，获悉四位股东与中证乾元金有 缘 1 号私募证券投资基金（基金编号为 SLX777，基金管理人为中证乾元资本管 理有限公司，以下简称"金有缘 1 号"）就终止协议转让公司部分股份事宜达成 一致意见，并签署了《股份转让协议之解除协议及还款安排》。现将相关事宜公 告如下: 一、本次协议转让事项概述 公司控股股东新疆惠伦、 ...