In the first half of 2022, from the global economic environment to the electronic components market, there are many uncertainties. The resurgence of the pandemic has hit the normal development pattern of all economies. The rise of global inflation and unemployment has weakened consumers' purchasing desire and purchasing power, and the consumer electronics market has remained weak. The supply and demand environment of the semiconductor industry is increasingly complex. With the release of production capacity, the market supply and demand are gradually restored to balance, and the industry has seen structural adjustment. In its latest forecast report released in August, the World Semiconductor Trade Statistics Association (WSTS) lowered the growth rate of the global semiconductor market size in 2022 from 16.3 percent to 13.9 percent.

In the face of complex market changes, Smart-Core Holdings Limited sized up the situation, gave full play to its own advantages, captured new hot spots and incremental demand in the market, and worked hard to overcome the difficulties brought about by declining market demand. In terms of authorized distribution business, the Group steadily serves customers in key industries by virtue of years of accumulated operation and management experience, platform research and development capabilities, domestic and overseas capital channels and industry reputation, and actively expands business opportunities highlighted in the new economy and new mode. In terms of independent distribution business, the company relies on professional teams and its own e-commerce platform to establish efficient connections between supply and demand in the global electronic components industry, so as to enhance business value. At the same time, the Group continues to export mature intelligent hardware end-to-end solutions to small and medium industry customers, actively layout overseas markets to obtain new development opportunities, continue to promote the development of the group's "all-in-one" distribution capabilities, the group's sales and profit growth in the first half of 2022 outperformed the market.

According to the financial data of Smart-Core Holdings Limited(02166.HK) for the six months ended June 30, 2022 disclosed in the Stock Exchange, the company achieved operating revenue of HK $5.662 billion from January 1, 2022 to June 30, 2022, with a year-on-year growth of 15.3%. Net profit attributable to the parent company was HK $145 million, up 53.5% year on year, gross margin increased 3.5 percentage points to 12%, the business scale grew steadily, the operating level continued to optimize!

Looking forward to the second half of 2022, the global semiconductor market will enter the structural adjustment stage, facing more variables and challenges. Smart-core Holdings Limited will actively promote the enterprise information construction, iteratively improve the digital operation system, and continue to expand the service scope of authorized distribution business. We will develop independent distribution business capabilities by deeply cultivating technology solutions and software services, and continue to optimize the self-run e-commerce platform -- SuperIC. We will strive to improve the business synergy capability of all-purpose distribution, accelerate the development of the group's business on the basis of stable operation and positive innovation, and enhance the group's business scale and profitability.

About SmarT-Core Holdings Limited:

Smart-core Holdings Limited, founded in 2005, is a leading integrated circuit and other electronic components distributor and technology value-added service provider in China. The Group's business types include licensed distribution, independent distribution, e-commerce platforms, technology value-added and the design and manufacturing of optical communication chips. Its business scope covers TV, photoelectric display, intelligent terminal, storage, security, communication products, Internet of things, industrial control, optical communication and other market segments, and its service outlets cover the Asia-Pacific region. We provide semiconductor chips and various electronic components with diversified supply chain services for electronic industry customers, and provide corresponding technical solutions, technical support and software services. The Group maintains stable business partnerships with hundreds of well-known semiconductor chip manufacturers upstream of the industry chain. By the end of 2021, we have served a diversified business customer base of more than 20,000, with sales of HK $10.39 billion in 2021.

For more information, please visit the website of Smart-Core Holdings Limited