Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 69,520,000, a decrease of 7.4% compared to RMB 74,885,000 for the same period in 2021[5] - Gross profit for the period was a loss of RMB 4,897,000, compared to a gross profit of RMB 6,017,000 in the previous year, indicating a significant decline[5] - Loss for the period attributable to the owners of the Company was RMB 38,281,000, compared to a loss of RMB 8,340,000 in the same period last year, representing an increase in loss of 359%[7] - The total comprehensive loss for the period was RMB 37,223,000, compared to a loss of RMB 8,340,000 in the previous period[16] - The company reported a loss for the period of RMB 38,281,000 for the six months ended June 30, 2022[16] - The Group reported a loss from operations of RMB 37,474,000 for the six months ended June 30, 2022, compared to a loss of RMB 7,354,000 in the same period of 2021[39] - The gross profit for the same period decreased by RMB 1.2 million to approximately RMB 4.8 million, mainly due to a decrease in the profit margin of the nonwoven fabric related products[95] Expenses and Liabilities - Administrative expenses rose to RMB 27,595,000, up from RMB 13,067,000, reflecting an increase of 111%[5] - Current liabilities increased to RMB 159,788,000, compared to RMB 151,954,000 at the end of 2021, indicating a rise of 5.2%[13] - Unallocated corporate expenses increased to RMB (16,862,000) in 2022 from RMB (5,224,000) in 2021[39] - Staff costs, including directors' remuneration, increased to RMB 16,328,000 in 2022 from RMB 14,541,000 in 2021, reflecting a rise of 12.3%[47] - Interest expenses on bank borrowings decreased to RMB 689,000 in 2022 from RMB 800,000 in 2021, a decline of 13.875%[49] Assets and Equity - Total assets decreased to RMB 319,208,000 as of June 30, 2022, down from RMB 343,842,000 at the end of 2021, a decline of 7.2%[10] - Total equity attributable to the owners of the Company decreased to RMB 158,258,000 from RMB 189,708,000, a reduction of 16.6%[10] - Cash and bank balances increased to RMB 29,294,000 from RMB 24,583,000, showing a growth of 19.3%[10] - Cash and cash equivalents at the end of the period were RMB 29,294,000, down from RMB 32,846,000 at the end of June 2021[19] - The aging analysis of trade receivables showed a total of RMB 150,961,000 as of June 30, 2022, slightly down from RMB 152,077,000 as of December 31, 2021[63] Cash Flow - For the six months ended June 30, 2022, the net cash generated from operating activities was RMB 27,242,000, a significant increase from RMB 276,000 in the same period of 2021[19] - The net cash used in investing activities was RMB 29,000, a decrease from RMB 2,260,000 in the same period of 2021[19] Share Capital and Options - The weighted average number of ordinary shares in issue during the six months ended June 30, 2022, was 169,615,656, compared to 118,515,520 in 2021, an increase of 43%[57] - As of June 30, 2022, the total issued and fully paid ordinary shares increased to 175,115,104 shares, up from 167,215,104 shares at the beginning of the year, reflecting an increase of approximately 4.3%[68] - The total outstanding share options for directors and employees amounted to 29,460,000 as of June 30, 2022, with 16,700,000 granted during the period[146] Corporate Governance - The company has complied with the Corporate Governance Code, except for the deviation regarding the roles of chairman and CEO being held by the same individual[150] - The board consists of three independent non-executive directors, ensuring a balance of power and authority[151] - The company confirmed that all directors complied with the code of conduct regarding securities transactions during the six months ended June 30, 2022[149] Business Operations - The principal activity of the company includes the manufacture and sale of nonwoven fabric products used in automotive interior decoration parts[22] - The Group reported a decrease in revenue from the manufacture and sale of nonwoven fabric products during the six months ended June 30, 2022, due to increasing competition in the automotive industry[83] - The Board expects 2022 to be a challenging year for the nonwoven fabric related products business due to increasing production costs and safety requirements[101] - The Group plans to upgrade production lines and install new machinery to improve production efficiency and meet customer demands for high-end products[108] Investments - As of June 30, 2022, the Group held significant investments in various companies, including approximately 4.5 million shares of Tai Kam Holdings Limited, approximately 5.5 million shares of Harbour Digital Asset Capital Limited, and approximately 22.8 million shares of Wealth Glory Holdings Limited[110] - The Group's investment in GEO Securities Limited, classified as "interest in an associate," resulted in a gain of approximately RMB 0.3 million for the six months ended June 30, 2022[90] Market Conditions - The production and sales of passenger vehicles in the PRC for the six months ended June 30, 2022, were approximately 10,434,000 units and 10,355,000 units, respectively, representing increases of approximately 6.0% and 3.4% compared to the same period in 2021[83] Risk Management - The Group will adopt a prudent approach to manage its money lending business while seeking opportunities for expansion[102] - The Group's significant investments may be susceptible to overall equity market conditions, indicating potential volatility in future valuations[118]