Financial Performance - The Group's revenue for the year ended December 31, 2024, increased to approximately RMB 128.6 million, representing a growth of approximately 13.1% compared to RMB 113.7 million in 2023[30][33]. - The gross profit for the year ended December 31, 2024, decreased by approximately RMB 9.8 million to approximately RMB 21.0 million due to increasing competition in the automotive industry[31][34]. - Other income, gains, and losses, net changed from a gain of approximately RMB 5.0 million in 2023 to approximately RMB 0.8 million in 2024, primarily due to a fair value loss on financial assets[32][35]. - Administrative expenses decreased by approximately RMB 3.3 million to approximately RMB 17.4 million for the year ended December 31, 2024, mainly due to a reduction in employee benefits expenses[36][40]. - Profit attributable to the owners of the Company was approximately RMB 26.9 million for the year ended December 31, 2024, down from RMB 30.5 million in 2023, primarily due to expected credit losses and over-provision in profit tax[37][41]. - The Group's liquidity ratio improved to 2.20 in 2024 from 1.56 in 2023, indicating better short-term financial health[46]. - Cash and bank balances increased to approximately RMB 49.4 million as of December 31, 2024, compared to RMB 26.0 million in 2023[45]. - The Group's total liabilities to total assets ratio decreased to 0.33 as of December 31, 2024, down from 0.43 in 2023, reflecting a stronger capital structure[50]. - The fair value gain/loss for significant investments included a gain of RMB 1,900,000 for China Investment and Finance Group Limited, representing 3.7% of total assets[57]. - The Group's investment property was valued at approximately RMB 3.4 million as of December 31, 2024, with leasehold land valued at approximately RMB 2.1 million, both pledged for bank borrowings[61]. Operational Developments - The Group's revenue from the manufacture and sale of nonwoven fabric related products is stable due to a 25.3% increase in passenger vehicle production and a 5.7% increase in sales in the PRC for the year ended December 31, 2024, totaling approximately 27,470,000 and 27,560,000 units respectively[15]. - The Group has diversified its operations by exiting the loss-making food trading business, which accounted for only 4.12% and 5.75% of the Group's revenue in 2022 and 2021 respectively, to mitigate risks[23]. - As of December 31, 2024, the Group has substantially utilized prepayments for the acquisition of property, plant, and equipment to upgrade existing production lines and acquire new facilities[21]. - The Group has established new production lines in Jilin Province to supply automotive components to a supplier for FAW Toyota, enhancing its operational capacity[16]. - The relocation of production lines to Cangzhou and Chengdu has been part of the Group's strategy to enhance production efficiency and meet customer demands[21]. - The Group plans to upgrade production lines, install new machinery, conduct R&D, and strengthen quality control systems to maintain competitiveness in the nonwoven fabric industry[38][44]. - The Board expects 2025 to be a challenging year due to rising production costs and safety requirements in the automotive industry[42][43]. - The Group will seek potential investment opportunities to diversify its business scope and enhance expansion efforts[39][43]. Corporate Governance - The Company is committed to maintaining high standards of corporate governance to protect shareholder interests[88]. - The Board believes that the current structure provides strong and consistent leadership for the Group[89]. - The Company has three independent non-executive Directors, ensuring a balance of power and adequate protection of shareholder interests[89]. - The corporate governance practices comply with the Corporate Governance Code, with noted deviations considered appropriate for operational efficiency[88]. - The Company has adopted a Board Diversity Policy to achieve diversity on the Board, considering factors such as gender, age, and professional experience[123]. - The Nomination Committee assesses the independence of all independent non-executive Directors annually to ensure they can exercise independent judgment[110]. - The Company provides newly appointed Directors with comprehensive induction training to familiarize them with governance practices and business operations[118]. - The Company recognizes the importance of Board independence and has mechanisms in place to ensure independent views are obtained[110]. - The Company has adopted a code of conduct for Directors' securities transactions that meets the required standards[99]. - The Board is responsible for monitoring financial performance, risk management, and internal control systems of the Group's business operations[102]. Risk Management and Compliance - The Board is responsible for evaluating risks associated with achieving the Group's strategic objectives[102]. - The Audit Committee reviewed the adequacy and effectiveness of the Group's risk management and internal control systems, including financial, operational, and compliance controls[158]. - The Company has engaged an external professional consultant for an independent internal control review for the year ended December 31, 2024[160]. - The Company will review and update its internal control policies at least once a year and provide training to relevant staff to ensure compliance with control procedures[165]. - The Company lost control of Loyal Brands Group, and the business and accounting records were not provided to the auditors, prompting a need for updated internal control measures[165]. - The Company will ensure that the financial department of subsidiaries directly reports to a designated member of the Board to enhance oversight[165]. - The Group has implemented a whistle-blowing policy allowing staff and third parties to report misconduct anonymously, ensuring fair treatment of whistle-blowers[169]. - An anti-bribery commitment policy requires key employees to sign a "Letter of Undertaking of Anti-bribery/Anti-corruption" to uphold the Group's integrity[174]. - The Company has complied with anti-corruption laws and regulations, with no prosecution cases during the reporting period[180]. Shareholder Engagement - The Company encourages shareholder participation in the annual general meeting to enhance communication regarding the Group's strategy and goals[186]. - The Company has established multiple communication channels with shareholders, including the publication of annual and interim reports and meetings with investors[185].

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 128,552,000, an increase of 13.1% compared to RMB 113,673,000 in 2023[4] - The gross profit decreased to RMB 21,041,000, down 31.7% from RMB 30,795,000 in the previous year[4] - The operating loss for the year was RMB 7,910,000, compared to an operating profit of RMB 35,927,000 in 2023[4] - The net profit attributable to the owners of the company was RMB 27,379,000, a decrease of 9.0% from RMB 30,031,000 in the prior year[5] - The group reported a pre-tax loss of RMB 1,466,000 in 2024, compared to a pre-tax profit of RMB 1,580,000 in 2023[21] - Other income and net gains shifted from approximately RMB 5.0 million in 2023 to about RMB 0.8 million in 2024, primarily due to a fair value loss on financial assets[42] - The profit attributable to the company's owners for the year ended December 31, 2024, was approximately RMB 26.9 million, down from RMB 30.5 million in 2023[44] Assets and Liabilities - The total assets as of December 31, 2024, were RMB 268,246,000, slightly up from RMB 265,434,000 in 2023[6] - The company's total liabilities decreased to RMB 89,155,000 from RMB 113,242,000 in the previous year, representing a reduction of 21.2%[7] - Trade receivables decreased to RMB 71,205,000 from RMB 83,270,000, with expected credit loss provisions increasing to RMB 15,543,000 from RMB 13,116,000[28] - Trade payables increased to RMB 39,812,000 from RMB 30,447,000, with a significant rise in payables due within 90 days[29] - The total amount of supplier financing arrangements was approximately RMB 2,200,000 as of December 31, 2024[29] Cash Flow and Investments - The cash and bank balances increased significantly to RMB 49,419,000 from RMB 26,043,000, marking an increase of 90.0%[6] - The company has made significant investments in non-current assets, with property, plant, and equipment rising to RMB 67,844,000 from RMB 19,010,000[6] - As of December 31, 2024, the group holds approximately 8.0 million shares (about 1.9%) in China Investment Group, 5.8 million shares (about 1.7%) in Haowen Holdings, 6.4 million shares (about 2.1%) in Wanmin Holdings, 22.8 million shares (about 2.6%) in Fuyu Holdings, 11.0 million shares (about 4.8%) in Longcheng Financial, and 4.5 million shares (about 1.8%) in Taijin Holdings[52] - The fair value of investments as of December 31, 2024, includes China Investment Group with a profit of RMB 1,900,000, Haowen with a profit of RMB 2,461,000, Wanmin with a profit of RMB 1,143,000, Fuyu with a loss of RMB 1,462,000, Longcheng Financial with a loss of RMB 1,098,000, and Taijin with a loss of RMB 635,000[54] Revenue Breakdown - The group's revenue from non-woven products for automotive interior parts was RMB 128,552,000 in 2024, an increase of 13.1% from RMB 113,673,000 in 2023[19] - Sales of automotive carpets accounted for RMB 86,262,000 in 2024, a decrease of 2.8% from RMB 88,766,000 in 2023[19] - Revenue from other automotive accessories increased significantly to RMB 42,290,000 in 2024, up 69.6% from RMB 24,907,000 in 2023[19] - The total cost of goods sold for the year was RMB 107,511,000, up from RMB 82,878,000 in 2023, indicating a rise of 29.7%[21] Corporate Governance - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with the standards set forth in the listing rules[61] - The company has maintained high levels of corporate governance to protect shareholders' interests, adhering to the principles and provisions of the corporate governance code[62] - Following the appointment of Mr. Yuan Weiqiang as an independent non-executive director and chairman of the audit committee, the company has complied with the relevant listing rules[65] Future Outlook - The board anticipates challenges in 2025 for the non-woven fabric manufacturing and sales business due to rising production costs[45] - The company plans to upgrade production lines and install new machinery to meet evolving customer demands for high-end products[47] - The company aims to diversify its business by seeking potential investment opportunities for expansion[48] Miscellaneous - The company sold its entire stake in Loyal Brands Group for HKD 1,000,000 (approximately RMB 916,000) on March 14, 2024, recognizing this in the financial statements[33] - The company has completed the review of the audited consolidated financial statements for the year ending December 31, 2024[69] - The audit committee has discussed financial reporting matters and reviewed the accounting principles adopted by the group[69] - There have been no significant events occurring after the end of the reporting period up to the date of this announcement[67] - The audited consolidated financial statements will be sent to shareholders and published on the stock exchange and the company's websites[69]

[Interim Results Announcement](index=1&type=section&id=Interim%20Results%20Announcement) Overview of the unaudited condensed consolidated interim results for the six months ended June 30, 2024 [Announcement of Unaudited Condensed Consolidated Interim Results](index=1&type=section&id=Announcement%20of%20Unaudited%20Condensed%20Consolidated%20Interim%20Results) The Board of China Automotive Interior Group Holdings Limited announces the unaudited condensed consolidated interim results for the six months ended June 30, 2024, with comparative data for 2023 - The company's results for the six months ended June 30, 2024, are unaudited condensed consolidated interim results[2](index=2&type=chunk)[3](index=3&type=chunk) [Unaudited Condensed Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements, including profit or loss, financial position, equity changes, and cash flows [Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2024, the Group's revenue decreased by **17.2%** to **RMB 49.46 million**, turning to a **loss of RMB 16.02 million** due to significantly increased other losses Key Data from Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30) | Indicator | 2024 (RMB thousand) | 2023 (RMB thousand) | Year-on-year change (%) | | :--- | :--- | :--- | :--- | | Revenue | 49,456 | 59,742 | -17.2% | | Cost of sales | (41,192) | (45,858) | -10.2% | | Gross profit | 8,264 | 13,884 | -40.5% | | Other losses | (12,745) | (575) | +2116.5% | | Operating (loss)/profit | (14,876) | 35 | Turned to loss | | Loss before tax | (16,003) | (1,101) | +1353.5% | | Loss for the period attributable to owners of the Company | (16,024) | (1,125) | +1324.4% | | Loss per share (basic and diluted) | (9.15) cents | (0.64) cents | +1329.7% | - Total other comprehensive income for the period significantly increased to **RMB 6,946 thousand** from **RMB 3,459 thousand** in the prior period, primarily due to exchange differences on translation of overseas operations[4](index=4&type=chunk) [Unaudited Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, the Group's total assets decreased by **5.87%** to **RMB 249.87 million**, with declines in net current assets and total equity indicating financial pressure Key Data from Statement of Financial Position (As of June 30) | Indicator | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Total assets | 249,869 | 265,434 | -5.87% | | Non-current assets | 90,119 | 93,139 | -3.24% | | Current assets | 159,750 | 172,295 | -7.28% | | Total equity | 143,114 | 152,192 | -5.97% | | Total liabilities | 106,755 | 113,242 | -5.73% | | Net current assets | 54,983 | 61,605 | -10.75% | - Trade and bills receivables significantly decreased by **38.55%** from **RMB 73.31 million** at the end of 2023 to **RMB 45.05 million** as of June 30, 2024[5](index=5&type=chunk) - Prepayments, deposits, and other receivables increased by **126.32%** from **RMB 24.13 million** at the end of 2023 to **RMB 54.61 million** as of June 30, 2024[5](index=5&type=chunk) [Unaudited Condensed Consolidated Statement of Changes in Equity](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) For the six months ended June 30, 2024, total equity attributable to owners decreased from **RMB 152.19 million** to **RMB 143.11 million**, primarily due to loss for the period and lapse of share options Key Data from Statement of Changes in Equity (Six Months Ended June 30) | Indicator | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Total equity at beginning of period | 152,192 | 121,666 | | Loss for the period | (16,024) | (1,125) | | Total other comprehensive income for the period | 6,946 | 3,459 | | Lapse of share options | – | – | | Total equity at end of period | 143,114 | 124,000 | - In the first half of 2024, accumulated losses increased from **RMB 237.84 million** at the beginning of the period to **RMB 251.00 million**[7](index=7&type=chunk) [Unaudited Condensed Consolidated Statement of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) For the six months ended June 30, 2024, net cash used in operating activities significantly decreased, investment activities turned to net cash inflow, and cash and bank balances increased Key Data from Statement of Cash Flows (Six Months Ended June 30) | Indicator | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Net cash used in operating activities | (3,443) | (9,393) | | Net cash used in investing activities | 57 | (1,050) | | Net cash used in financing activities | (2,076) | (2,797) | | Net decrease in cash and cash equivalents | (5,462) | (13,240) | | Cash and cash equivalents at end of period | 27,728 | 15,104 | - Changes in foreign exchange rates had a positive impact of **RMB 7,147 thousand** on cash and cash equivalents, a significant increase from **RMB 3,020 thousand** in the prior period[9](index=9&type=chunk) [Notes to the Unaudited Condensed Consolidated Interim Financial Statements](index=8&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Interim%20Financial%20Statements) This section provides detailed notes to the unaudited condensed consolidated interim financial statements, covering general information, accounting policies, and specific financial items [General Information](index=8&type=section&id=General%20Information) The Company, incorporated in the Cayman Islands, primarily engages in investment holding, with the Group's main businesses including manufacturing and selling automotive non-woven products, and trading rubber and food - The Company was incorporated in the Cayman Islands on **December 9, 2009**[10](index=10&type=chunk) - The Group's principal activities include manufacturing and selling non-woven products for automotive interiors, and trading rubber and food[10](index=10&type=chunk) [Basis of Preparation](index=8&type=section&id=Basis%20of%20Preparation) The interim financial statements are prepared in accordance with HKAS 34 and Appendix D2 of the Listing Rules, adopting consistent accounting policies with 2023, with changes expected in the 2024 annual financial statements - The interim financial statements comply with HKAS 34 'Interim Financial Reporting' and the disclosure requirements of Appendix D2 of the Listing Rules[10](index=10&type=chunk) - Accounting policies are consistent with the 2023 annual financial statements, but changes are expected in the 2024 annual financial statements[10](index=10&type=chunk) [Application of New and Amendments to HKFRSs](index=9&type=section&id=Application%20of%20New%20and%20Amendments%20to%20HKFRSs) The Group has adopted several new and amended HKFRSs for the first time, with no significant impact on the financial position or performance for the current and prior periods - Amendments to HKFRS 17 (Insurance Contracts), HKAS 8 (Definition of Accounting Estimates), and HKAS 12 (Deferred Tax related to Assets and Liabilities arising from a Single Transaction, International Tax Reform – Pillar Two Model Rules) were applied in the current period[11](index=11&type=chunk) - The application of these new and amended standards had no significant impact on the Group's financial position and performance[11](index=11&type=chunk) [Revenue](index=9&type=section&id=Revenue) For the six months ended June 30, 2024, the Group's revenue, entirely from non-woven products for automotive use, totaled **RMB 49.46 million**, a **17.2% decrease** from **RMB 59.74 million** in the prior period Revenue Sources (Six Months Ended June 30) | Revenue source | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Non-woven related products for automotive use | 49,456 | 59,742 | - The Group primarily engages in manufacturing and selling non-woven products for automotive interior parts and other components, as well as trading rubber and food[11](index=11&type=chunk) [Other Losses](index=10&type=section&id=Other%20Losses) For the six months ended June 30, 2024, the Group's other losses significantly increased to **RMB 12.75 million**, mainly due to a substantial increase in fair value losses on financial assets at fair value through profit or loss Details of Other Losses (Six Months Ended June 30) | Item | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 21 | 16 | | Fair value loss on financial assets at fair value through profit or loss | (15,694) | (3,889) | | Net (loss)/gain on disposal of property, plant and equipment | (33) | 1,486 | | Gain on disposal of a deconsolidated subsidiary | 923 | – | | Rental income | 2,005 | 1,795 | | Others | 33 | 17 | | **Total** | **(12,745)** | **(575)** | - Fair value loss on financial assets at fair value through profit or loss increased from **RMB 3.89 million** in 2023 to **RMB 15.69 million** in 2024, being the primary driver for the significant increase in other losses[13](index=13&type=chunk) [Segment Information](index=10&type=section&id=Segment%20Information) The Group's operating segments include manufacturing and selling non-woven products and supply and procurement businesses, with the non-woven segment being the primary revenue source but experiencing declines in both revenue and segment results - The Group has two main operating segments: (i) manufacturing and selling non-woven related products for automotive interior parts and other components; and (ii) supply and procurement business (including trading of food and rubber)[14](index=14&type=chunk)[15](index=15&type=chunk) Segment Revenue and Results (Six Months Ended June 30) | Segment | 2024 Revenue (RMB thousand) | 2023 Revenue (RMB thousand) | 2024 Segment Results (RMB thousand) | 2023 Segment Results (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Supply and procurement business | – | – | (39) | (166) | | Manufacturing and sales of non-woven related products | 49,456 | 59,742 | (548) | 8,443 | | **Total** | **49,456** | **59,742** | **(587)** | **8,277** | - Revenue from the non-woven related products segment decreased by **17.2%**, with segment results turning from profit to loss[17](index=17&type=chunk) - Unallocated corporate expenses increased from **RMB 8.28 million** in 2023 to **RMB 17.24 million** in 2024, contributing to the expanded operating loss[17](index=17&type=chunk) Segment Assets and Liabilities (As of June 30) | Indicator | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Segment assets | 229,575 | 229,713 | | Unallocated corporate assets | 20,294 | 35,721 | | **Total assets** | **249,869** | **265,434** | | Segment liabilities | 69,155 | 76,161 | | Unallocated corporate liabilities | 37,600 | 37,081 | | **Total liabilities** | **106,755** | **113,242** | [Loss from Operations](index=13&type=section&id=Loss%20from%20Operations) For the six months ended June 30, 2024, the Group's operating loss was **RMB 14.88 million**, influenced by depreciation of property, plant and equipment, right-of-use assets, and inventory costs recognized as cost of sales Key Components of Operating Loss (Six Months Ended June 30) | Item | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 645 | 1,488 | | Depreciation of right-of-use assets | 858 | 1,520 | | Directors' emoluments | 234 | 421 | | Cost of inventories recognized as cost of sales | 9,199 | 19,295 | | Staff costs (including directors' emoluments) | 4,859 | 5,240 | - Cost of inventories recognized as cost of sales decreased from **RMB 19.30 million** in 2023 to **RMB 9.20 million** in 2024[24](index=24&type=chunk) [Finance Costs](index=13&type=section&id=Finance%20Costs) For the six months ended June 30, 2024, the Group's finance costs totaled **RMB 1.13 million**, remaining largely stable compared to the prior period, primarily comprising interest expenses on bank borrowings Details of Finance Costs (Six Months Ended June 30) | Item | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Interest expense on bank borrowings repayable wholly within five years | 1,023 | 975 | | Interest expense on lease liabilities | 104 | 161 | | **Total** | **1,127** | **1,136** | [Income Tax Expense](index=14&type=section&id=Income%20Tax%20Expense) For the six months ended June 30, 2024, the Group's income tax expense was primarily **RMB 21 thousand** for China corporate income tax, with no Hong Kong profits tax provision due to no taxable profits Details of Income Tax Expense (Six Months Ended June 30) | Item | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | China corporate income tax | 21 | 24 | - The Group is not subject to any income tax in the Cayman Islands and British Virgin Islands[29](index=29&type=chunk) - The corporate income tax rate applicable to the Group's PRC subsidiaries is **25%**[29](index=29&type=chunk) - No provision for Hong Kong profits tax was made for both periods as no assessable profits arose in Hong Kong[29](index=29&type=chunk) [Loss Per Share](index=15&type=section&id=Loss%20Per%20Share) For the six months ended June 30, 2024, basic and diluted loss per share attributable to owners was **RMB 9.15 cents**, a significant increase from **RMB 0.64 cents** in the prior period, mainly due to expanded loss for the period Loss Per Share (Six Months Ended June 30) | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Basic and diluted loss per share | (9.15) cents | (0.64) cents | | Loss for the period attributable to owners of the Company | RMB 16,024,000 | RMB 1,125,000 | | Weighted average number of ordinary shares in issue | 175,115,104 shares | 175,115,104 shares | - As there were no potential dilutive ordinary shares in issue for both periods, diluted loss per share was the same as basic loss per share[30](index=30&type=chunk)[33](index=33&type=chunk) [Dividend](index=15&type=section&id=Dividend) The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024 (2023: nil)[31](index=31&type=chunk)[34](index=34&type=chunk) [Trade and Bills Receivables](index=15&type=section&id=Trade%20and%20Bills%20Receivables) As of June 30, 2024, the Group's trade and bills receivables totaled **RMB 45.05 million**, a **38.55% decrease** from **RMB 73.31 million** at the end of 2023, mainly due to reduced receivables aged 0 to 90 days Details of Trade and Bills Receivables (As of June 30) | Item | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 42,534 | 70,154 | | Bills receivables | 2,520 | 3,156 | | **Total** | **45,054** | **73,310** | Ageing Analysis of Trade Receivables (As of June 30) | Ageing | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 36,237 | 55,634 | | 91 to 180 days | 434 | 5,229 | | 181 to 365 days | 5,863 | 9,291 | | **Total** | **42,534** | **70,154** | - The Group generally grants credit periods of **30 to 120 days** to customers and closely monitors overdue receivables[38](index=38&type=chunk) [Share Capital](index=16&type=section&id=Share%20Capital) As of June 30, 2024, the Company's authorized and issued share capital remained unchanged, consisting of ordinary shares with a par value of **HKD 0.025** each Share Capital Structure (As of June 30) | Item | Number of shares | Amount (HKD thousand) | Amount (RMB thousand) | | :--- | :--- | :--- | :--- | | Authorized share capital (ordinary shares of HKD 0.025 each) | 40,000,000,000 | 1,000,000 | 863,495 | | Issued and fully paid share capital (ordinary shares of HKD 0.025 each) | 175,115,104 | 4,378 | 3,643 | - The share capital structure has remained unchanged since **January 1, 2024**[39](index=39&type=chunk) [Trade Payables](index=17&type=section&id=Trade%20Payables) As of June 30, 2024, the Group's total trade payables were **RMB 26.11 million**, a **14.26% decrease** from **RMB 30.45 million** at the end of 2023 Ageing Analysis of Trade Payables (As of June 30) | Ageing | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | 0 to 90 days | 12,469 | 14,791 | | 91 to 180 days | 1,589 | 3,744 | | 181 to 365 days | 534 | 423 | | Over 365 days | 11,515 | 11,489 | | **Total** | **26,107** | **30,447** | - Trade payables aged **0 to 90 days** decreased, while those over **365 days** remained stable[41](index=41&type=chunk) [Bank Borrowings](index=17&type=section&id=Bank%20Borrowings) As of June 30, 2024, the Group's total bank borrowings were **RMB 25.00 million**, all secured bank loans classified as current liabilities Details of Bank Borrowings (As of June 30) | Item | June 30, 2024 (RMB thousand) | December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | | Bank loans, secured | 25,000 | 25,000 | | Less: Amount classified as current liabilities | (25,000) | (25,000) | | Amount classified as non-current liabilities | – | – | - Short-term bank loans are subject to floating interest rates, exposing the Group to cash flow interest rate risk[44](index=44&type=chunk) [Material Related Party Transactions](index=18&type=section&id=Material%20Related%20Party%20Transactions) For the six months ended June 30, 2024, the Group's material related party transactions primarily involved key management personnel remuneration, totaling **RMB 234 thousand**, a decrease from the prior period Key Management Personnel Remuneration (Six Months Ended June 30) | Item | 2024 (RMB thousand) | 2023 (RMB thousand) | | :--- | :--- | :--- | | Salaries and other short-term benefits | 234 | 422 | | Employer's retirement benefit scheme contributions | – | 3 | | **Total** | **234** | **425** | [Management Discussion and Analysis](index=19&type=section&id=Management%20Discussion%20and%20Analysis) This section provides management's discussion and analysis of the Group's business and financial performance, outlook, and key resources [Business Review](index=19&type=section&id=Business%20Review) The Group engages in manufacturing and selling automotive non-woven products, trading rubber and food, and securities investment, with non-woven revenue declining due to market competition and rubber trading adopting a back-to-back model - The Group's principal businesses include manufacturing and selling non-woven products for automotive interiors, trading rubber and food, and engaging in securities investment and financial services[47](index=47&type=chunk)[48](index=48&type=chunk) - Non-woven products are primarily supplied to PRC automotive parts manufacturers for producing main carpet fabrics and headliner fabrics for vehicles[49](index=49&type=chunk) - For the six months ended June 30, 2024, China's passenger vehicle production and sales increased by **5.4%** and **6.3%** respectively, but intense competition in the automotive industry led to a decrease in the Group's non-woven business revenue[49](index=49&type=chunk) - Rubber trading, commenced in **2012**, primarily operates on a back-to-back basis to manage price fluctuation risks, accepting only orders with lower default risk[49](index=49&type=chunk) - The Company indirectly holds a **42%** equity interest in Smart Orient Securities Limited through a joint venture, which holds Type 1, 4, and 9 regulated activity licenses under the SFO, with the Group's share of loss being approximately **RMB 0.16 million**[50](index=50&type=chunk)[51](index=51&type=chunk) [Financial Review](index=20&type=section&id=Financial%20Review) For the six months ended June 30, 2024, the Group's revenue decreased by **17.2%**, gross profit by **40.5%**, and other losses surged by **2116.5%**, leading to an expanded loss attributable to owners of **RMB 16.0 million** Financial Performance Summary (Six Months Ended June 30) | Indicator | 2024 (RMB million) | 2023 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 49.4 | 59.7 | -17.2% | | Gross profit | 8.3 | 13.9 | -40.5% | | Other losses | 12.7 | 0.6 | +2116.5% | | Administrative expenses | 8.7 | 7.9 | +10.1% | | Loss attributable to owners of the Company | 16.0 | 1.1 | +1354.5% | - The decrease in revenue was primarily attributable to lower revenue from the manufacturing and sales of non-woven related products business[53](index=53&type=chunk) - The decline in gross profit was mainly due to reduced profit margins in the manufacturing and sales of non-woven related products business[54](index=54&type=chunk)[56](index=56&type=chunk) - The significant increase in other losses was mainly due to an increase of approximately **RMB 11.8 million** in fair value losses on financial assets at fair value through profit or loss[55](index=55&type=chunk)[57](index=57&type=chunk) [Prospect and Outlook](index=21&type=section&id=Prospect%20and%20Outlook) The Board anticipates challenges for the non-woven business in 2024, planning production line upgrades, R&D, quality control, and new client acquisition, while cautiously managing rubber and food trading and exploring investment opportunities - The manufacturing and sales of non-woven related products business is expected to face challenges in **2024** due to continuous increases in production costs and higher safety requirements in the automotive industry[60](index=60&type=chunk)[62](index=62&type=chunk) - To maintain revenue streams, the Group will: - Upgrade production lines to enhance efficiency - Install new machinery to meet customer demand for high-end products - Conduct research and development to keep pace with the latest technological trends - Strengthen quality control systems to solidify reputation and customer loyalty - Identify new customers to diversify the customer base[60](index=60&type=chunk)[62](index=62&type=chunk)[64](index=64&type=chunk) - Rubber trading will adopt a cautious approach to order acceptance to mitigate risks from crude oil price fluctuations[62](index=62&type=chunk)[64](index=64&type=chunk) - The food trading business will continue to seek new customers to strengthen its customer base[62](index=62&type=chunk)[64](index=64&type=chunk) - The Group will continue to prudently manage its money lending business, seek expansion opportunities, and identify potential investment opportunities to diversify its business scope[62](index=62&type=chunk)[63](index=63&type=chunk)[64](index=64&type=chunk) [Significant Investments](index=22&type=section&id=Significant%20Investments) As of June 30, 2024, the Group held shares in four Hong Kong-listed companies, collectively termed "significant investments," which incurred substantial fair value losses this period, with future values subject to overall market conditions - The Group holds shares in China Investment and Finance Group Limited (**1.9%**), Fullshare Holdings Limited (**2.6%**), Ronsen Financial Holdings Limited (**4.8%**), and Tai Kam Holdings Limited (**1.8%**)[65](index=65&type=chunk)[66](index=66&type=chunk) Fair Value and Losses of Significant Investments (As of June 30) | Company name | Fair value loss as of June 30, 2024 (RMB thousand) | Fair value as of June 30, 2024 (RMB thousand) | Approximate percentage of total assets (%) | Fair value as of December 31, 2023 (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | China Investment and Finance | 5,774 | 2,151 | 0.86% | 7,762 | | Fullshare | 2,377 | 784 | 0.31% | 3,109 | | Ronsen Financial | 508 | 2,249 | 0.90% | 2,700 | | Tai Kam | 1,217 | 831 | 0.49% | 2,011 | - As of June 30, 2024, financial assets at fair value through profit or loss included **17** Hong Kong-listed equity securities, with no single investment exceeding **1%** of the Group's total assets[68](index=68&type=chunk) - The future value of significant investments may be affected by overall stock market conditions[69](index=69&type=chunk)[70](index=70&type=chunk) [Liquidity and Financial Resources](index=23&type=section&id=Liquidity%20and%20Financial%20Resources) The Group primarily funds operations through internal cash and bank financing; as of June 30, 2024, cash and bank balances increased, while the liquidity ratio slightly decreased and the gearing ratio remained stable - The Group's working capital is primarily sourced from internal cash resources and bank financing[71](index=71&type=chunk) Liquidity and Financial Ratios (As of June 30) | Indicator | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and bank balances (RMB million) | 27.7 | 26.0 | | Current ratio (current assets/current liabilities) | 1.52 | 1.56 | | Gearing ratio (total liabilities/total assets) | 0.43 | 0.43 | - Approximately **RMB 10.8 million** (December 31, 2023: **RMB 10.3 million**) of cash and bank balances are denominated in HKD and USD[71](index=71&type=chunk) [Foreign Exchange Exposure](index=23&type=section&id=Foreign%20Exchange%20Exposure) Most of the Group's assets and liabilities are denominated in RMB, USD, and HKD, with no significant foreign exchange contract, interest, currency swap, or other financial derivative risks as of June 30, 2024 - Most of the Group's assets and liabilities are denominated in RMB, USD, and HKD[71](index=71&type=chunk) - As of June 30, 2024, the Group was not exposed to significant risks from foreign exchange contracts, interest, currency swaps, or other financial derivative instruments[71](index=71&type=chunk) [Capital Structure](index=23&type=section&id=Capital%20Structure) There have been no significant changes to the Group's capital structure since December 31, 2023 - There have been no significant changes to the Group's capital structure since **December 31, 2023**[71](index=71&type=chunk) [Suspension of Trading](index=23&type=section&id=Suspension%20of%20Trading) The Company's shares were suspended from trading on April 2, 2024, due to a disclaimer of opinion from the auditor, with the Stock Exchange setting an 18-month deadline until October 1, 2025, to resume trading or face delisting - The Company's shares have been suspended from trading on the Stock Exchange since **April 2, 2024**, due to the auditor's disclaimer of opinion on the Company's financial statements[71](index=71&type=chunk) - The Stock Exchange has issued resumption guidance and set an **18-month** deadline until **October 1, 2025**, under Listing Rule 6.01A(1), after which the Company may be delisted if trading does not resume[71](index=71&type=chunk) - The Company is taking appropriate measures to comply with the resumption guidance and relevant Listing Rules[71](index=71&type=chunk) [Other Information](index=24&type=section&id=Other%20Information) This section provides other relevant information, including directors' and substantial shareholders' interests, share option scheme, corporate governance, and employee details [Directors' and Chief Executives' Interests in Shares, Underlying Shares and Debentures](index=24&type=section&id=Directors'%20and%20Chief%20Executives'%20Interests%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) As of June 30, 2024, Directors Zhuang Yuejin, Xiao Suni, and Zhu Chunyan held long positions in the Company's shares, with Mr. Zhuang Yuejin holding the largest percentage Directors' Long Positions in Shares and Underlying Shares of the Company (As of June 30) | Name | Capacity and nature of interest | Number of ordinary shares held | Approximate percentage of the Company's shareholding (%) | | :--- | :--- | :--- | :--- | | Zhuang Yuejin | Beneficial owner | 15,164,800 | 8.66% | | Xiao Suni | Beneficial owner | 790,000 | 0.45% | | Zhu Chunyan | Beneficial owner | 790,000 | 0.45% | - Save as disclosed above, no other director or chief executive had any other interests or short positions in the shares or debentures of the Company or its associated corporations[73](index=73&type=chunk)[75](index=75&type=chunk) [Substantial Shareholders' and Other Persons' Interests or Short Positions in the Shares or Underlying Shares of the Company](index=25&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20or%20Short%20Positions%20in%20the%20Shares%20or%20Underlying%20Shares%20of%20the%20Company) As of June 30, 2024, the Board was unaware of any other persons, apart from the directors, holding interests or short positions in the Company's shares or underlying shares requiring disclosure under the SFO - Save for the directors' interests, the Board was not aware of any other persons holding interests or short positions in the shares or underlying shares of the Company required to be disclosed under Part XV of the Securities and Futures Ordinance[76](index=76&type=chunk) [Share Option Scheme](index=25&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme on June 5, 2015, valid until June 4, 2025; as of June 30, 2024, **4,800,000** share options remained unexercised, with **15,030,000** options lapsing during the period - The share option scheme was adopted on **June 5, 2015**, for a period of **ten years**, expiring on **June 4, 2025**[76](index=76&type=chunk) - Under the scheme, the maximum number of shares subject to options granted shall not exceed **10%** of the Company's issued share capital, with exercise prices determined by the Directors[76](index=76&type=chunk) Movements of Share Options (Six Months Ended June 30) | Category | Outstanding as of January 1, 2024 | Granted during the period | Exercised during the period | Cancelled during the period | Lapsed during the period | Outstanding as of June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Directors | 3,340,000 | - | - | - | (3,340,000) | - | | Employees | 16,490,000 | - | - | - | (11,690,000) | 4,800,000 | | **Total** | **19,830,000** | **-** | **-** | **-** | **(15,030,000)** | **4,800,000** | - As of June 30, 2024, **4,800,000** share options remained unexercised, with a total of **17,511,510** shares available for issue[76](index=76&type=chunk) [Purchase, Sale or Redemption of the Listed Securities of the Company](index=27&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Listed%20Securities%20of%20the%20Company) For the six months ended June 30, 2024, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities for the six months ended June 30, 2024[79](index=79&type=chunk)[84](index=84&type=chunk) [Director's Interest in Competing Interests](index=27&type=section&id=Director's%20Interest%20in%20Competing%20Interests) For the six months ended June 30, 2024, the Directors were unaware of any business or interest of the Directors, controlling shareholders, or their associates that competed or potentially conflicted with the Group's business - For the six months ended June 30, 2024, the Directors were unaware of any competing business or conflicts of interest[80](index=80&type=chunk)[85](index=85&type=chunk) [Code of Conduct Regarding Securities Transactions by Directors](index=27&type=section&id=Code%20of%20Conduct%20Regarding%20Securities%20Transactions%20by%20Directors) The Company has adopted a code of conduct for directors' securities transactions, no less exacting than the Model Code, and all directors confirmed compliance for the six months ended June 30, 2024 - The Company has adopted a code of conduct for directors' securities transactions no less exacting than the Model Code[81](index=81&type=chunk)[86](index=86&type=chunk) - All Directors confirmed compliance with the code for the six months ended June 30, 2024[81](index=81&type=chunk)[86](index=86&type=chunk) [Corporate Governance](index=27&type=section&id=Corporate%20Governance) The Company has complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, except for the combined roles of Chairman and Chief Executive, which the Board believes provides strong and consistent leadership with adequate checks and balances - The Company has complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, except for code provision C.2.1 (roles of Chairman and Chief Executive should be separate)[82](index=82&type=chunk)[87](index=87&type=chunk) - Mr. Zhuang Yuejin serves as both Chairman and Chief Executive Officer, an arrangement the Board believes enhances efficiency and provides strong, consistent leadership[83](index=83&type=chunk)[88](index=88&type=chunk) - The Board believes that the operation by experienced Board members, including two independent non-executive directors, ensures adequate checks and balances[83](index=83&type=chunk)[88](index=88&type=chunk) [Material Acquisitions or Disposals](index=28&type=section&id=Material%20Acquisitions%20or%20Disposals) For the six months ended June 30, 2024, the Group made no material acquisitions or disposals of subsidiaries and associated companies - For the six months ended June 30, 2024, the Group made no material acquisitions or disposals of subsidiaries and associated companies[89](index=89&type=chunk) [Pledge on Assets](index=28&type=section&id=Pledge%20on%20Assets) As of June 30, 2024, the Group's bank loans were secured by buildings with a carrying value of approximately **RMB 3.6 million** and leasehold land of approximately **RMB 2.2 million** - The Group's bank loans are secured by buildings with a carrying value of approximately **RMB 3.6 million** and leasehold land of approximately **RMB 2.2 million**[89](index=89&type=chunk) [Employees and Remuneration Policy](index=28&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2024, the Group employed **82** staff, a decrease from the prior period, with remuneration based on experience, qualifications, and ability, including statutory MPF, social insurance, and housing provident fund benefits Number of Employees (As of June 30) | Date | Number of employees | | :--- | :--- | | June 30, 2024 | 82 | | June 30, 2023 | 95 | - Remuneration policy is determined by the Board based on employees' experience, qualifications, and abilities[89](index=89&type=chunk) - Employee benefits include statutory Mandatory Provident Fund contributions, social insurance, and housing provident fund[89](index=89&type=chunk) [Events After the Reporting Period](index=28&type=section&id=Events%20After%20the%20Reporting%20Period) No significant events occurred after the six months ended June 30, 2024, up to the date of this report - No significant events occurred after the six months ended June 30, 2024, and up to the date of this report[89](index=89&type=chunk) [Nomination Committee](index=28&type=section&id=Nomination%20Committee) The Nomination Committee, established on September 13, 2010, comprises an executive director (Chairman Mr. Zhuang Yuejin) and two independent non-executive directors - The Nomination Committee was established on **September 13, 2010**, in compliance with the Corporate Governance Code[89](index=89&type=chunk) - The Committee comprises Mr. Zhuang Yuejin (Executive Director and Chairman), Mr. Yuan Weiqiang, and Ms. Wu Lina (Independent Non-executive Directors)[89](index=89&type=chunk) [Remuneration Committee](index=28&type=section&id=Remuneration%20Committee) The Remuneration Committee, established on September 13, 2010, consists of an executive director and two independent non-executive directors, with Mr. Yuan Weiqiang serving as Chairman - The Remuneration Committee was established on **September 13, 2010**, in compliance with the Corporate Governance Code[89](index=89&type=chunk) - The Committee comprises Mr. Zhuang Yuejin (Executive Director), Mr. Yuan Weiqiang (Independent Non-executive Director and Chairman), and Ms. Zhu Chunyan (Independent Non-executive Director)[89](index=89&type=chunk) [Audit Committee](index=29&type=section&id=Audit%20Committee) The Audit Committee, established on September 13, 2010, consists of three independent non-executive directors, with Mr. Yuan Weiqiang as Chairman, and has reviewed the unaudited condensed consolidated interim results, deeming them compliant with applicable accounting standards - The Audit Committee was established on **September 13, 2010**, in compliance with the Corporate Governance Code[91](index=91&type=chunk)[93](index=93&type=chunk) - The Committee comprises Mr. Yuan Weiqiang (Chairman), Ms. Wu Lina, and Ms. Zhu Chunyan (all Independent Non-executive Directors)[91](index=91&type=chunk)[93](index=93&type=chunk) - The Committee has reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2024, and considers them to be in compliance with applicable accounting standards and requirements[91](index=91&type=chunk)[93](index=93&type=chunk) [Board of Directors](index=29&type=section&id=Board%20of%20Directors) As of June 30, 2024, the Board of Directors comprised three executive directors and two independent non-executive directors, with Mr. Zhuang Yuejin serving as Chairman - As of June 30, 2024, the Board of Directors comprised three executive directors (Mr. Zhuang Yuejin, Mr. Wu Zhonghao, Ms. Xiao Suni) and two independent non-executive directors (Ms. Wu Lina, Ms. Zhu Chunyan)[92](index=92&type=chunk)[94](index=94&type=chunk) - Mr. Zhuang Yuejin serves as the Chairman of the Board[92](index=92&type=chunk)[94](index=94&type=chunk)

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 49,456,000, a decrease of 17.2% compared to RMB 59,742,000 for the same period in 2023[4] - Gross profit for the period was RMB 8,264,000, down 40.1% from RMB 13,884,000 in the previous year[4] - Loss for the period attributable to the owners of the Company was RMB 16,024,000, compared to a loss of RMB 1,125,000 in the same period last year[5] - The company reported a net loss of RMB 16,024,000 for the six months ended June 30, 2024, compared to a loss of RMB 1,125,000 for the same period in 2023, indicating a significant increase in losses[8] - Basic and diluted loss per share was 9.15 cents, compared to 0.64 cents in the same period last year[5] - The group reported a net loss of RMB 12,745,000 for the six months ended June 30, 2024, compared to a loss of RMB 575,000 in the same period of 2023[14] - The group reported a loss before tax of RMB 16,003,000 for the six months ended June 30, 2024, compared to a loss of RMB 1,101,000 in the same period of 2023[18] Assets and Liabilities - Total assets decreased to RMB 249,869,000 as of June 30, 2024, from RMB 265,434,000 at the end of 2023, reflecting a decline of 5.9%[6] - Total liabilities decreased to RMB 106,755,000 as of June 30, 2024, from RMB 113,242,000 as of December 31, 2023, representing a reduction of approximately 5.3%[7] - Total equity attributable to the owners of the Company decreased to RMB 143,114,000 from RMB 152,192,000, a reduction of 5.9%[6] - The company’s net current assets decreased to RMB 54,983,000 as of June 30, 2024, from RMB 61,605,000 as of December 31, 2023, a decline of about 10.7%[7] - Trade and bills receivables dropped significantly to RMB 45,054,000 from RMB 73,310,000, a decrease of 38.6%[6] - Trade payables decreased to RMB 26,107,000 as of June 30, 2024, from RMB 30,447,000 as of December 31, 2023, representing a decline of approximately 14.5%[7] Cash Flow and Liquidity - Cash and bank balances increased to RMB 27,728,000 from RMB 26,043,000, showing a growth of 6.5%[6] - Cash and cash equivalents at the end of the period increased to RMB 27,728,000 from RMB 15,104,000 year-over-year, reflecting a growth of approximately 83.8%[10] - Net cash used in operating activities improved to RMB (3,443,000) for the six months ended June 30, 2024, compared to RMB (9,393,000) in the same period of 2023, showing a reduction in cash outflow[10] - The Group's liquidity ratio was 1.52 as of June 30, 2024, slightly down from 1.56 on December 31, 2023, while the gearing ratio remained stable at 0.43[71] Segment Performance - Revenue from nonwoven fabric products used in automotive interior decoration decreased to RMB 49,456,000 for the six months ended June 30, 2024, down 17.2% from RMB 59,742,000 in the same period of 2023[12] - Segment revenue from supply and procurement operations for the six months ended June 30, 2024, was RMB 49,456,000, compared to RMB 59,742,000 in 2023, representing a decrease of approximately 17.2%[18] - The segment results for the supply and procurement operations showed a loss of RMB 39,000 for the first half of 2024, an improvement from a loss of RMB 166,000 in the same period of 2023[18] Expenses and Costs - The cost of inventories recognized as cost of sales was RMB 9,199,000 for the six months ended June 30, 2024, compared to RMB 19,295,000 in 2023, reflecting a decrease of about 52.3%[25] - Administrative expenses increased by approximately RMB0.8 million from approximately RMB7.9 million to approximately RMB8.7 million for the six months ended 30 June 2024[58][62] - Unallocated corporate expenses increased to RMB (17,239,000) in the first half of 2024 from RMB (8,275,000) in 2023, indicating a significant rise in corporate costs[18] Investments and Share Options - As of June 30, 2024, the Group held significant investments in various companies, including approximately 8.0 million shares (1.9%) of China Investment and Finance Group Limited[65][67] - The fair value loss for significant investments was RMB5.774 million for China Investment and Finance Group Limited for the six months ended June 30, 2024[67] - A total of 15,030,000 outstanding share options lapsed during the period[77] - The total number of shares available for issuance upon exercise of all options to be granted under the scheme was 17,511,510 shares, which is 10% of the issued share capital of the Company[76] Corporate Governance and Compliance - The Company has complied with the corporate governance code, with a deviation regarding the roles of Chairman and CEO deemed appropriate for efficiency[88] - The Company has adopted a code of conduct for securities trading by Directors, confirming compliance by all Directors for the six months ended June 30, 2024[86] - The Audit Committee reviewed the Group's unaudited condensed consolidated interim results for the six months ended June 30, 2024, confirming compliance with applicable accounting standards[91] Future Outlook and Strategy - The Board expects 2024 to be a challenging year due to continuously increasing production costs and enhanced safety requirements in the automotive industry[60][64] - The Group plans to upgrade production lines to improve efficiency and install new machinery to meet high-end product demands[60][64] - Research and development will be conducted to keep up with the latest technological trends in product specifications[60][64] - The Group will adopt a cautious approach in accepting orders due to the increasing risk of volatility in rubber prices linked to crude oil fluctuations[61] - The Group aims to strengthen its customer base in the food trading business by finding new customers[61]

Production and Sales - The production and sales of passenger vehicles in China for the year ended December 31, 2023, were approximately 21,923,000 units and 26,063,000 units, representing an increase of approximately 4.2% and 10.6% respectively[14]. - The Group's principal business includes the manufacture and sale of nonwoven fabric related products used in automotive interior decoration parts[12]. - The Group has established new production lines in Jilin Province to supply automotive components to a supplier under the brand "FAW Toyota" since 2021[20]. Financial Performance - The Group's revenue for the year ended December 31, 2023, decreased to approximately RMB 113.7 million, representing a decrease of approximately 38.2% compared to RMB 184.0 million in 2022, primarily due to a decline in sales of automotive floor carpets[30]. - Gross profit increased by approximately RMB 11.3 million to approximately RMB 30.8 million for the year ended December 31, 2023, attributed to improved production efficiency after the relocation of production lines[33]. - Profit attributable to the owners of the Company was approximately RMB 30.0 million for 2023, compared to a loss of approximately RMB 78.6 million for the corresponding period in 2022, primarily due to fair value gains and a reversal of expected credit losses of approximately RMB 27.5 million[37]. Losses and Disposals - The Group shared a loss of associates of approximately RMB2.8 million for the year ended December 31, 2023, from its 42% equity interest in GEO Securities Limited[25]. - The Group's food trading business incurred losses for years and did not generate any income in 2023, with revenue in 2022 and 2021 accounting for only 4.12% and 5.75% of the Group's total revenue respectively[24]. - The Group has diversified into the business of trading food products since 2016 but has decided to dispose of this business in the first quarter of 2024 due to its loss-making record[24]. Cash and Liquidity - The Group's cash and bank balances amounted to approximately RMB26.0 million as of 31 December 2023, an increase from RMB25.3 million in 2022[64]. - The liquidity ratio improved to 1.56 in 2023, up from 1.41 in 2022, while the gearing ratio decreased to 0.43 from 0.60[65]. Investments and Financial Assets - The Group's financial resources are also deployed in securities investment to achieve earnings through capital appreciation and dividend income[12]. - The Group held significant investments in four companies, with the fair value of these investments totaling RMB 17.6 million, representing approximately 6.0% of total assets[78]. - The Group's investment in China Investment and Finance Group Limited resulted in a gain of RMB 4.8 million, while Wealth Glory Holdings Limited experienced a loss of RMB 0.4 million[78]. Corporate Governance - The company has complied with the corporate governance code, except for the separation of roles between the Chairman and CEO, which is deemed efficient by the Board[115]. - The Board consists of three executive directors and three independent non-executive directors, ensuring a balanced structure with relevant industry knowledge[118]. - The Company has established a Remuneration Committee, which includes one executive Director and two independent non-executive Directors, to oversee remuneration policies and packages[147]. Risk Management and Internal Controls - The Company plans to review and update its internal control policies at least once a year to ensure compliance and control over all subsidiaries[184]. - The Company has identified internal control deficiencies that contributed to the audit issue and is implementing remedial measures to address these deficiencies[180]. - The internal control systems are designed to manage business risks and provide reasonable assurance against material financial misstatements or losses[173]. Future Outlook - The Board expects 2024 to be a challenging year due to increasing production costs and safety requirements in the automotive industry[41]. - The company has set a revenue guidance of HKD 1.5 billion for the next fiscal year, projecting a growth rate of 25%[110]. - The company plans to enhance its digital marketing strategy, allocating an additional HKD 20 million to boost online sales channels[110].

Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of RMB 113,673,000, a decrease of 38.1% compared to RMB 184,036,000 in the previous year[4] - The gross profit for the year was RMB 30,795,000, representing a significant increase of 57.8% from RMB 19,486,000 in the prior year[4] - The operating profit for the year was RMB 35,927,000, a turnaround from an operating loss of RMB 76,400,000 in the previous year[4] - The net profit attributable to the owners of the company was RMB 30,031,000, compared to a net loss of RMB 78,558,000 in the previous year[5] - The total revenue for the year 2023 was RMB 113,673 thousand, a decrease of 38.0% compared to RMB 184,036 thousand in 2022[29] - The operating profit for 2023 was RMB 35,927 thousand, a significant improvement from an operating loss of RMB 76,400 thousand in 2022[21] - The company reported a basic earnings of approximately RMB 30,031,000 for the year, compared to a loss of RMB 78,558,000 in the previous year, resulting in a basic earnings per share of RMB 0.171[38] - The group's other income or loss net amount changed from a loss of approximately RMB 19.1 million in 2022 to a gain of approximately RMB 5.0 million in 2023, primarily due to fair value gains on financial assets of approximately RMB 6.3 million[63] - The profit attributable to the owners of the company for 2023 was approximately RMB 30.0 million, compared to a loss of approximately RMB 78.6 million in the same period of 2022, primarily due to fair value gains on financial assets and a reversal of expected credit loss provisions of approximately RMB 27.5 million[65] Assets and Liabilities - The company's total assets decreased to RMB 265,434,000 from RMB 307,217,000, reflecting a decline of 13.6% year-over-year[7] - The total liabilities also decreased to RMB 113,242,000 from RMB 185,551,000, a reduction of 39.0% compared to the previous year[9] - The company's trade receivables decreased to RMB 70,154,000 in 2023 from RMB 141,096,000 in 2022, reflecting a reduction of approximately 50.3%[42] - The company's trade payables decreased to RMB 30,447,000 in 2023 from RMB 50,596,000 in 2022, a decline of approximately 39.8%[43] - The company's cash and bank balances increased slightly to RMB 26,043,000 from RMB 25,324,000, indicating a stable liquidity position[7] - The liquidity ratio as of December 31, 2023, was 1.56, an increase from 1.41 in 2022, indicating improved short-term financial health[71] Investments and Capital Expenditure - The company has invested approximately RMB 58.1 million in upgrading existing production lines and purchasing new equipment, with installations expected in 2024[57] - The capital expenditure for the manufacturing and sales of non-woven products was RMB 1,128 thousand in 2023, compared to RMB 900 thousand in 2022, showing an increase of 25.3%[25] Business Strategy and Market Focus - The company plans to continue focusing on the development of non-woven fabric products for automotive interiors and expand its market presence[12] - The company has shifted its focus to manufacturing and selling non-woven fabric products for automotive interiors, which remains a core business area[55] - The company has adopted a strategy to exit unprofitable businesses post-COVID-19, particularly in the food trading sector[59] - The food trading business, which has been a loss-making segment, generated no revenue in 2023 and accounted for only 4.12% and 5.75% of total revenue in 2022 and 2021 respectively, leading to its planned sale in Q1 2024[59] Challenges and Future Outlook - The board anticipates significant challenges in 2024 for the non-woven fabric manufacturing and sales business due to rising production costs and increased safety requirements in the automotive industry[66] - The group plans to continue investing resources in upgrading production lines, installing new machinery, and enhancing quality control systems to maintain competitiveness and meet customer demands for high-end products[67][74] Corporate Governance and Compliance - The company has adhered to the corporate governance code, with the exception of deviation from rule C.2.1 regarding the roles of the Chairman and CEO[87] - The audit committee consists of three independent non-executive directors as of December 31, 2023[88] - The financial performance figures for the year ending December 31, 2023, have been verified by the company's auditor, KPMG[90] - The audited consolidated financial statements for the year ending December 31, 2023, have been reviewed by the audit committee and approved by the board of directors[92] Dividends and Share Capital - The company did not declare any dividends for the year ending December 31, 2023, consistent with the previous year[40] - The company’s total issued and paid-up shares increased to 175,115,104 as of December 31, 2023, from 172,431,268 in the previous year[44] - The board does not recommend the payment of a final dividend for the year ended December 31, 2023[70] Other Financial Information - The company reported a financing cost of RMB 1,580 thousand in 2023, reduced from RMB 2,070 thousand in 2022, indicating a decrease of 23.7%[33] - The company incurred a loss of RMB 6,470 thousand from the termination of a consolidated subsidiary in 2023, with no such loss reported in 2022[30] - The company recognized a loss of RMB 6,470,000 related to the termination of consolidation for Loyal Brands Group, which was sold for HKD 1,000,000[48] - The company's deferred tax expenses increased to RMB 3,826,000 in 2023 from RMB 78,000 in 2022[9] - The company has not recognized any taxable profits for the year ending December 31, 2023, similar to the previous year[36] - The company has faced challenges in obtaining adequate audit evidence for its financial statements due to the lack of records from the Loyal Brands Group[54] - The group has no significant acquisitions or disposals of subsidiaries or associates during the year ended December 31, 2023[79] - No significant events occurred after the fiscal year ending December 31, 2023, up to the date of this announcement[89]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 59,742,000, a decrease of 14.1% compared to RMB 69,520,000 for the same period in 2022[6] - Gross profit increased significantly to RMB 13,884,000, compared to RMB 4,897,000 in the previous year, reflecting a gross margin improvement[6] - Loss for the period attributable to the owners of the Company was reduced to RMB 1,125,000 from RMB 38,281,000 in the prior year, indicating a substantial recovery[8] - Total comprehensive income for the period attributable to the owners of the Company was RMB 2,334,000, compared to a loss of RMB 37,223,000 in the same period last year[8] - The company reported a basic and diluted loss per share of 0.64 cents, an improvement from 22.6 cents in the previous year[8] - The Group's total loss before tax for the first half of 2023 was RMB 1,101,000, significantly improved from a loss of RMB 38,272,000 in the same period of 2022[41] - For the six months ended June 30, 2023, the company reported a loss of approximately RMB 1,125,000, a significant improvement compared to a loss of RMB 38,281,000 for the same period in 2022[61] - Loss attributable to the owners of the Company was approximately RMB 1.1 million, significantly improved from a loss of approximately RMB 38.3 million in the corresponding period of 2022[102] Asset and Liability Management - Trade receivables decreased to RMB 80,740,000 from RMB 141,096,000, indicating improved collection efficiency[12] - Total assets decreased to RMB 269,532,000 from RMB 307,217,000, reflecting a reduction in overall asset base[12] - Total equity increased to RMB 124,000,000 from RMB 121,666,000, showing a slight improvement in the company's net worth[12] - Current liabilities decreased to RMB 141,876,000 from RMB 180,943,000, indicating better management of short-term obligations[15] - Cash and bank balances decreased to RMB 15,104,000 from RMB 25,324,000, reflecting cash flow challenges[12] - The company’s total equity as of June 30, 2023, was RMB 124,000,000, down from RMB 158,258,000 as of June 30, 2022[18] - The aging analysis of trade receivables showed a total of RMB 80,740,000 as of June 30, 2023, down from RMB 141,096,000 at the end of 2022, indicating a reduction of about 43%[67] - The aging analysis of trade payables as of June 30, 2023, showed a total of RMB 53.7 million, an increase from RMB 50.6 million as of December 31, 2022[75] Cash Flow and Investment Activities - For the six months ended June 30, 2023, the company reported a net cash used in operating activities of RMB (9,393,000), a significant decrease compared to RMB 27,242,000 in the same period of 2022[21] - The company reported a net cash used in investing activities of RMB (1,050,000) for the first half of 2023, compared to RMB (29,000) in the same period of 2022[21] - The company’s net cash used in financing activities was RMB (2,797,000) for the first half of 2023, compared to RMB (22,961,000) in the same period of 2022[21] - As of June 30, 2023, cash and cash equivalents decreased to RMB 15,104,000 from RMB 29,294,000 at the end of June 2022[21] - Other losses for the six months ended June 30, 2023, decreased to approximately RMB 0.6 million from approximately RMB 11.4 million in 2022[97] Operational Efficiency - Staff costs, including directors' remuneration, decreased to RMB 5,240,000 in 2023 from RMB 16,328,000 in 2022, representing a reduction of approximately 68%[49] - The cost of inventories recognized as cost of sales decreased to RMB 53,655,000 in 2023 from RMB 61,875,000 in 2022, a decline of about 13%[49] - Administrative expenses decreased by approximately RMB 19.7 million to approximately RMB 7.9 million, primarily due to one-off losses related to the relocation of production lines[101] - Unallocated corporate expenses decreased to RMB 8,275,000 in the first half of 2023, down from RMB 16,862,000 in the same period of 2022[41] Market and Industry Context - The production and sales of passenger vehicles in the PRC were approximately 11,281,000 units and 11,268,000 units respectively for the six months ended June 30, 2023, representing an increase of approximately 8.1% and 8.8% compared to the same period in 2022[85] - The Group's revenue for nonwoven fabric related products used in automobiles decreased to RMB 59,742,000 in the first half of 2023, down 11.4% from RMB 67,260,000 in the same period of 2022[34] - The revenue from the manufacture and sale of nonwoven fabric related products was RMB 59.7 million, down from RMB 67.3 million in the previous year[95] Corporate Governance and Structure - 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[152] - The company has three independent non-executive directors on the board, ensuring a balance of power and authority[153] - The Board of Directors consists of three executive Directors and three independent non-executive Directors as of June 30, 2023[174] - The audit committee, established on September 13, 2010, comprises three independent non-executive Directors as of June 30, 2023[173] - The remuneration committee was established to review the remuneration policy and structure for all directors and senior management[169] Future Outlook and Strategy - The Board expects 2023 to be a challenging year due to increasing production costs and safety requirements in the automotive industry[103] - The Group aims to diversify its business scope by seeking potential investment opportunities for better returns and expansion[111] - The Group will adopt a cautious approach in accepting orders to mitigate risks associated with fluctuating rubber prices due to crude oil price volatility[103] - The Group plans to upgrade production lines and install new machinery to improve production efficiency and meet high-end product demands[110]

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，並明確表示概不就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。 中 國 汽 車 內 飾 集 團 有 限 公 司 CHINA AUTOMOTIVE INTERIOR DECORATION HOLDINGS LIMITED （於開曼群島註冊成立的有限公司） （股份代號：0048） 截至二零二三年六月三十日止六個月中期業績公告 中國汽車內飾集團有限公司（「本公司」）董事會（「董事會」）宣佈本公司及其附屬 公司截至二零二三年六月三十日止六個月的未經審核綜合中期業績，連同比較數 字。本公告（載有本公司二零二三年中期報告全文）符合香港聯合交易所有限公司 （「聯交所」）證券上市規則有關中期業績初步公告隨附資料的相關規定。本公司二 零二三年中期報告印刷版將於二零二三年九月寄發予本公司股東，並可於聯交所 及本公司網站查閱。 承董事會命 中國汽車內飾集團有限公司 主席 莊躍進 ...

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，並明確表示概不就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。 中 國 汽 車 內 飾 集 團 有 限 公 司 CHINA AUTOMOTIVE INTERIOR DECORATION HOLDINGS LIMITED （於開曼群島註冊成立的有限公司） （股份代號：0048） 有關截至二零二二年十二月三十一日止年度之年報之 補充公告 謹此提述中國汽車內飾集團有限公司（「本公司」）截至二零二二年十二月三十一 日止財政年度之年報（「年報」）。除非另有指明，本公告所用詞彙與年報所界定者 具有相同涵義。 除年報「購股權計劃」一節所披露之資料外，本公司謹此提供有關該計劃詳情的額 外資料，載列如下： 於二零二二年一月一日及二零二二年十二月三十一日，根據該計劃可授予的購股 權數目分別為16,721,510份及17,511,510份。 年內就根據該計劃授予的16,700,000份購股權而可予發行的股份數目除以本年度 已發行普通股的加權平均數172,431,268股約為0.097。 ...

Financial Performance - For the year ended December 31, 2022, the production and sales of passenger vehicles in China were approximately 23,836,000 units and 23,563,000 units, representing an increase of approximately 11.2% and 9.5% respectively[11]. - The Group's revenue for the year ended 31 December 2022 increased to approximately RMB184.0 million, representing a growth of approximately 1.3% compared to RMB181.7 million in 2021[30]. - The gross profit for the year ended 31 December 2022 decreased by approximately 18.9% to approximately RMB19.5 million due to increasing competition in the automotive industry[31]. - Other losses for the year ended 31 December 2022 changed from a gain of approximately RMB7.3 million in 2021 to a loss of approximately RMB19.1 million, primarily due to fair value losses on financial assets at fair value through profit or loss amounting to approximately RMB20.3 million[32]. - The loss attributable to the owners of the Company was approximately RMB78.6 million for 2022, compared to a loss of approximately RMB0.4 million in 2021[38]. Business Operations - The Group's principal business includes the manufacture and sale of nonwoven fabric related products used in automotive interior decoration parts, with a focus on meeting specific customer requirements[15]. - The Group resumed trading of food products in 2016, generating steady income for the year ended December 31, 2022[23]. - New production lines were established in Jilin Province in the second half of 2021 to supply automotive components to a supplier for "FAW Toyota"[21]. - The demand for automotive materials remained stable during 2022 due to favorable growth in the passenger vehicle market[16]. - The Group's products are primarily processed by customers to create various automotive parts for passenger vehicles[20]. Financial Position - The Group's liquidity ratio at 31 December 2022 was 1.41, down from 1.83 in 2021, while the gearing ratio increased to 0.60 from 0.45[47]. - The Group's cash and bank balances amounted to approximately RMB25.3 million as of 31 December 2022, compared to RMB24.6 million in 2021[46]. - The Group raised approximately HKD 22.3 million from the placement of 71,663,616 shares at HKD 0.32 each, with funds allocated for bank loan repayment and working capital[51]. - The Group held significant investments in three companies: approximately 22.8 million shares (2.6%) of Wealth Glory Holdings Limited, 5.5 million shares (1.9%) of Harbour Digital Asset Capital Limited, and 11.0 million shares (4.8%) of Lerado Financial Group Company Limited as of December 31, 2022[60]. - The fair value loss for Wealth Glory Holdings was RMB 841,000, for Harbour Digital Asset Capital was RMB 1,409,000, and for Lerado Financial Group was RMB 755,000 as of December 31, 2022[64]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholders' interests, complying with the Corporate Governance Code except for a deviation regarding the roles of chairman and CEO[98][99]. - The group has a strong leadership structure with three independent non-executive directors ensuring a balance of power and authority[99]. - The Company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience for Board appointments[127]. - The Company has received confirmations from all Directors regarding their participation in continuous professional development activities[125]. - The audit committee held two meetings during the year, with all members attending both meetings, indicating strong governance practices[144]. Employee Management - The total number of employees decreased to 96 as of December 31, 2022, from 223 in 2021[72]. - The Group's remuneration policy is based on employee experience, qualifications, and competence, with additional benefits including contributions to provident funds and social insurance[72]. - The company has implemented employee benefits including mandatory provident fund contributions and social insurance for employees in Hong Kong and China[75]. - The remuneration committee held two meetings during the year to discuss the remuneration policy and determine Directors' remuneration[135]. - The attendance rate for the nomination committee meetings was 100% for the executive director and one independent non-executive director, while another independent non-executive director had 0% attendance[141]. Future Plans - The Group plans to upgrade production lines, install new machinery, conduct research and development, and strengthen quality control systems to maintain competitiveness in 2023[42]. - The Group intends to seek potential investment opportunities to diversify its business scope and enhance expansion[44]. - The Group plans to continue seeking investment opportunities to diversify its business and enhance returns[50]. - The Group will adopt a cautious approach in accepting orders due to the increasing risk of volatility in rubber prices linked to crude oil fluctuations[43]. Dividend Policy - The Group does not recommend the payment of a final dividend for the year ended December 31, 2022[13]. - The Company has established a dividend policy aimed at providing stable and sustainable returns to shareholders, considering various financial and operational factors[196][197]. - The Board will continually review the Dividend Policy and reserves the right to update or cancel it at any time[199]. - The Company does not have a pre-determined dividend distribution ratio, and past dividend distribution records do not guarantee future dividends[198].