Financial Performance - The company's revenue reached approximately RMB 10,113,288,000, representing a year-on-year increase of 56.29%[10] - Net profit amounted to approximately RMB 1,967,640,000, a year-on-year growth of 147.57%[10] - Profit attributable to owners of the company was approximately RMB 1,692,775,000, reflecting a year-on-year increase of 180.62%[10] - The company recorded revenue of approximately RMB 10,113,288,000 for the six months ended June 30, 2022, representing a 56.29% increase compared to RMB 6,470,878,000 for the same period last year[20] - The gross profit margin increased to 36.86%, up by 10.65 percentage points year-on-year[10] - The gross profit margin increased to 36.86% from 26.21% in the same period last year, while the operating profit margin rose to 23.56% from 16.13%[20] - The company recorded a net profit of approximately RMB 1,967,640,000, up from RMB 794,790,000 in the same period last year[20] - The company’s total comprehensive income for the six months ended June 30, 2022, was RMB 1,692,775,000, compared to RMB 1,675,570,000 for the same period in 2021, representing a growth of approximately 1.3%[85] - The company reported a profit attributable to equity holders of RMB 1,692,775,000 for the six months ended June 30, 2022[85] Research and Development - R&D expenses were approximately RMB 616,590,000, a 103.66% increase compared to RMB 302,758,000 in the same period of 2021[13] - A total of 267 R&D projects were conducted, with 116 new projects initiated and 85 new products launched[13] - The company plans to accelerate the selection and market introduction of R&D projects in the second half of the year[15] - The company has a current total of 501 valid patents, with 23 patent applications filed and 42 patents granted during the review period[13] Operational Highlights - The company completed 30 project constructions during the review period, with ongoing projects including the expansion of PVDF products[11] - The fluoropolymer materials segment achieved external sales of RMB 3,318,963,000, a 70.87% increase from RMB 1,942,387,000 in the previous year, accounting for 32.82% of total external sales[24] - The organic silicon segment's external sales increased by 114.34% to RMB 3,451,972,000, accounting for 34.13% of total external sales, with a profit of RMB 636,691,000, up 52.42% from last year[25] - The refrigerant segment's external sales rose by 70.67% to RMB 2,087,848,000, representing 20.64% of total external sales, with a profit of RMB 353,822,000, an increase of 198.65% year-on-year[26] - The dichloromethane, PVC, and caustic soda segment's external sales increased by 2.08% to RMB 764,785,000, with a profit of RMB 213,517,000, up 2,188.01% compared to last year[27] - The property development segment's external sales decreased by 66.33% to RMB 250,276,000, with a profit of RMB 4,750,000, down 84.89% year-on-year[30] Capital Expenditures and Investments - Capital expenditures for the first half of 2022 totaled approximately RMB 1,616,112,000, compared to RMB 1,128,374,000 in the same period last year[35] - The company plans to complete a new 10,000 tons/year PVDF project by October, with total PVDF production capacity expected to reach 25,000 tons/year by the end of the year[16] - The company has established plans to expand PVDF production capacity to 55,000 tons/year by 2025 due to increased demand from the lithium battery industry[24] - The company acquired property, machinery, and equipment amounting to approximately RMB 1,331,361,000 for business expansion in refrigerants, polymers, and organosilicon, compared to RMB 551,749,000 in the same period of 2021, indicating a significant increase of about 141%[112] Financial Position - As of June 30, 2022, total equity reached RMB 16,662,063,000, a 6.54% increase from December 31, 2021, with cash and bank balances totaling RMB 5,671,472,000[36] - The total borrowing amount of the group was RMB 670,600,000, an increase from RMB 624,100,000 as of December 31, 2021, resulting in a debt ratio of -42.88%[37] - The group has a net cash position, indicating that cash and cash equivalents exceed its debt[37] - The company reported a total asset less current liabilities of RMB 17,532,807 thousand, up from RMB 16,353,738 thousand in the previous year[83] - The company's total liabilities as of June 30, 2022, were RMB 10,222,936,000, compared to RMB 9,151,291,000 as of January 1, 2022, indicating an increase in leverage[85] Governance and Compliance - The company emphasizes enhancing internal control management to mitigate operational risks and improve compliance[18] - The board believes that having the same person serve as both chairman and CEO enhances strong leadership and operational efficiency[57] - The company has complied with the corporate governance code, except for the separation of roles between the chairman and CEO[56] - The group has established various committees, including an audit committee and a risk management committee, to oversee financial reporting and risk management practices[47][52] - The company has engaged an independent consulting firm to conduct internal reviews and provide recommendations for its internal control systems[53] Employee and Shareholder Information - The group employed a total of 6,843 employees as of June 30, 2022, compared to 6,824 employees as of December 31, 2021[42] - The company has implemented a compensation policy based on performance and employee contributions, including benefits such as medical insurance and stock options[42] - The company repurchased a total of 1,501,000 shares at a price range of HKD 10.58 to HKD 11.10, with a total cost of approximately HKD 16,403,120[44] - The board did not declare an interim dividend for the six months ended June 30, 2022, consistent with the previous year[43] Risk Management - The company has identified and assessed various risks, creating a risk list and prioritizing them based on potential financial losses and operational impacts[54] - The board has reviewed the effectiveness of the risk management and internal control systems and considers them sufficient[54] - The company has established internal audit functions to continuously improve and monitor the effectiveness of risk management systems[54]

Financial Performance - The Group's revenue increased by 57.74%, gross profit margin rose by 10 percentage points, and net profit surged by 197.01% in 2021[7]. - For the year ended 31 December 2021, the Group recorded revenue of approximately RMB15,843,947,000, representing an increase of 57.74% compared to RMB10,044,313,000 in the previous year[21]. - Gross profit margin increased to 32.93% (2020: 22.35%) and operating results margin was 23.01% (2020: 11.04%) during the review year[21]. - The Group recorded profit before taxation of approximately RMB3,244,209,000 (2020: RMB1,016,621,000) and net profit of approximately RMB2,681,545,000 (2020: RMB902,856,000)[21]. - Basic earnings per share was RMB0.98 (2020: RMB0.37) with a recommended final dividend of HK$0.34 per share[21]. Research and Development - R&D expenses amounted to approximately RMB 838,893,000, representing a year-on-year increase of 42.07%, accounting for 5.29% of revenue[10]. - The Group launched 92 new products during the year, including high-end environmentally friendly dispersion resins and high-performance polyvinylidene fluoride resins for lithium-ion batteries[12]. - The Group submitted 93 patent applications and was granted approval for 70 patents, with over 460 valid patents currently held[12]. - The Group had a total of 573 R&D staff dedicated to innovation and technological advancement[12]. Market Demand and Product Segments - The domestic new energy industry demand significantly boosted the market for battery-grade PVDF, establishing the Group as a key supplier[11]. - The demand for PVDF surged by 176.04%, significantly contributing to the Group's revenue growth[27]. - The Group's fluoropolymers segment generated revenue of RMB4,825,266,000 with an operating profit margin of 27.88%[24]. - The organic silicon segment achieved revenue of RMB4,184,131,000 with an operating profit margin of 30.30%[24]. - Revenue from the refrigerants segment was RMB3,337,155,000 with an operating profit margin of 17.41%[24]. Capital Expenditure and Production Capacity - Capital expenditure for the year reached approximately RMB 4,803,248,000, representing an increase of 152.74% from approximately RMB 1,900,497,000 in 2020[13]. - The new 10,000 tons/year PVDF project is expected to be completed and put into operation in October 2022, with total PVDF production capacity projected to reach 25,000 tons/year[15]. - By 2025, the total production capacity of PVDF is planned to reach 55,000 tons/year, and the total production capacity of raw material R142b will reach 100,000 tons/year[15]. - Dongyue Organosilicon's 300,000 tons/year organic silicon monomer and 200,000 tons/year organic silicon downstream deep-processing projects began trial production at the end of 2021, with production capacity expected to more than double[15]. Corporate Governance - The Company has adopted and complied with the Corporate Governance Code during the year ended December 31, 2021, except for a deviation regarding the roles of chairman and CEO[114]. - The Company has established various committees, including a Remuneration Committee, Audit Committee, Nomination Committee, Corporate Governance Committee, and Risk Management Committee, to enhance governance[137]. - The Board believes that the placing will broaden the shareholder base and finance the planned rapid development and expansion of the Group's business and production capacity, which is in the interests of the Company and its shareholders[69]. - The Company emphasizes the importance of maintaining high standards of corporate governance as a key responsibility of the Directors[127]. Shareholder Information - The company reported a final dividend of HKD 0.34 per share for the year ended December 31, 2021, compared to HKD 0.14 in 2020, subject to shareholder approval[56]. - The Group's distributable reserves as of December 31, 2021, amounted to RMB4,567,139,000, with HK$766,254,000 (approximately RMB628,747,000) proposed as the Final Dividend[61]. - The Company placed 145,000,000 new shares and repurchased 1,499,000 ordinary shares, resulting in a total of 2,255,190,455 issued shares as of December 31, 2021[36]. Risk Management - The Company acknowledges its obligations under the Securities and Futures Ordinance and the Listing Rules, ensuring immediate publication of inside information when aware[161]. - The Company will continue to improve and monitor the effectiveness of its risk management and internal control systems[161]. - The Risk Management Committee's discussions included internal control measures and policies, which were reviewed before recommending them to the Board for approval[158]. - The Company has developed risk management manuals to clarify responsibilities in risk management among management, the Board, and committees[160]. Environmental, Social, and Governance (ESG) - The ESG report covers the period from January 1, 2021, to December 31, 2021, with some content extending beyond this timeframe[179]. - The report is prepared in accordance with the Environmental, Social and Governance Reporting Guide of the Hong Kong Stock Exchange[182]. - The company emphasizes stakeholder engagement as a crucial channel for sustainable development, collecting and analyzing stakeholder feedback for continuous improvement[192]. - The focus on environmental compliance includes emission compliance and energy conservation efforts[199].

Financial Performance - In the first half of 2021, the company achieved significant growth in operating performance, driven by technological innovation and market recovery, with a notable increase in sales of fluorosilicone materials[7]. - The company recorded revenue of approximately RMB 6,470,878,000 for the six months ended June 30, 2021, representing a 39.57% increase from RMB 4,636,363,000 in the same period last year[20]. - The company’s net profit for the period was approximately RMB 794,790,000, up from RMB 446,747,000 in the same period of 2020[20]. - The company’s operating profit margin was 16.13%, an increase from 12.17% in the previous year[20]. - The company reported a total profit before tax of RMB 997,895 for the six months ended June 30, 2021, reflecting strong operational performance[96]. - The company reported a total comprehensive income of RMB 705,868 thousand for the period, significantly higher than RMB 248,184 thousand in the same period last year, representing an increase of approximately 184.5%[77]. Revenue Growth by Segment - The fluoropolymer materials division reported external sales of RMB 1,942,387,000, an increase of 28.92% compared to RMB 1,506,705,000 in the same period last year, accounting for 30.02% of total external sales[25]. - The refrigerants division's external sales reached RMB 1,223,303,000, a growth of 17.70% from RMB 1,039,330,000 last year, representing 18.90% of total external sales[27]. - The organic silicon division's external sales increased by 41.97% to RMB 1,610,491,000 from RMB 1,134,350,000 last year, accounting for 24.89% of total external sales[29]. - The division for dichloromethane, PVC, and caustic soda reported external sales of RMB 749,218,000, a 23.98% increase from RMB 604,323,000 last year, but profits decreased by 65.01% to RMB 9,332,000[30]. Research and Development - Research and development expenditure reached RMB 303 million, a year-on-year increase of 51.08%, accounting for 4.68% of total revenue, with 24 new product development projects completed[11]. - A total of 40 patents were granted to the company during the review period, reflecting its commitment to innovation in the fluorosilicone materials sector[11]. - The company has established six laboratories in major cities and countries, enhancing its ability to attract high-end talent and collaborate with academic institutions[11]. Production Capacity and Expansion Plans - The company plans to accelerate the construction of key product projects, including a 20,000-ton PTFE project and a 30,000-ton organic silicon monomer project, aiming for production by the end of the year[9]. - The company aims to double its organic silicon production capacity by the end of the year through ongoing project advancements[9]. - The company plans to expand PVDF production capacity to 55,000 tons and R142b production capacity to 100,000 tons by 2025, focusing on the unique advantages of the R152a-R142b-VDF-PVDF supply chain[14]. Environmental and Safety Initiatives - The company is also focusing on environmental safety projects, including acid recovery and wastewater recycling initiatives[9]. - The company’s safety reserve, required by regulations, amounted to RMB 4,823,000, reflecting compliance with safety regulations in China[84]. Shareholder and Governance Matters - The board did not declare an interim dividend for the six months ended June 30, 2021, consistent with the previous year[44]. - The company has established a Corporate Governance Committee effective from March 21, 2013, to oversee corporate governance matters[52]. - The company has complied with the corporate governance code except for the separation of the roles of Chairman and CEO, which are held by the same individual[58]. Financial Position and Liabilities - As of June 30, 2021, total equity reached RMB 10,886,581,000, a 3.38% increase from December 31, 2020, with cash and bank balances totaling RMB 4,310,707,000[39]. - The group’s total borrowings amounted to RMB 1,999,954,000 as of June 30, 2021, compared to RMB 1,904,550,000 on December 31, 2020, with a negative debt ratio of -26.94%[40]. - The company’s total liabilities as of June 30, 2021, were RMB 2,099,723,000, reflecting a manageable debt level in relation to its equity[82]. Employee and Management Information - The group employed 5,956 staff as of June 30, 2021, an increase from 5,576 employees on December 31, 2020[43]. - The total remuneration for directors and key management personnel for the six months ended June 30, 2021, was RMB 17,006,000, a decrease of 6.9% from RMB 18,274,000 in the same period of 2020[136]. Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2021, was RMB 1,209,438, an increase of 16.8% compared to RMB 1,035,431 for the same period in 2020[87]. - The net cash used in investing activities was RMB (1,128,644), slightly higher than RMB (1,056,216) for the same period in 2020[87]. - The company’s cash and cash equivalents at the end of the period were RMB 4,310,707, down from RMB 4,746,135 at the end of the same period in 2020[87].

Financial Performance - The Group achieved a total revenue of RMB 10,044 million with a gross profit margin of 22.35% and a net profit of RMB 903 million during the review period[10]. - For the year ended December 31, 2020, the Group recorded revenue of approximately RMB 10,044,313,000, a decrease of 22.49% from RMB 12,958,692,000 in the previous year[40]. - The gross profit margin decreased to 22.35% (2019: 26.59%) and the operating results margin was 11.04% (2019: 17.50%) for the year ended December 31, 2020[40]. - The Group recorded profit before taxation of approximately RMB 1,016,621,000 (2019: RMB 2,120,300,000) and net profit of approximately RMB 902,856,000 (2019: RMB 1,742,281,000) for the year under review[40]. - The Group's basic earnings per share for the year was RMB 0.37, down from RMB 0.70 in 2019[40]. - The final dividend recommended by the Board is HK$0.14 per share, down from HK$0.23 in 2019[40]. Research and Development - R&D expenses reached RMB 590 million, representing a year-on-year increase of 79.34%, with over 60 new grade products launched and 98 patent applications submitted[18]. - The number of R&D staff increased from 380 in 2019 to 430, including an increase of 4 staff with doctoral degrees or above[18]. - The Group's R&D expenditure has been increasing, with plans to establish R&D centers in Japan, Canada, and Germany to enhance capabilities and focus on fluorine, silicone, membrane, and hydrogen industries[31]. Market and Sales - The Group's proactive market expansion efforts led to a slight increase in overall sales volume during a period of market contraction[10]. - The Group anticipates a domestic economic rebound in 2021, prompting adjustments in marketing strategies to expand existing markets and explore new applications in 5G, new infrastructure, and new energy[32]. - The Group aims to boost sales of new and high-end products to increase their revenue share, particularly in high-end material applications[31]. Capital Expenditure and Investments - The Group's capital expenditure in 2020 totaled approximately RMB 1,900,497,000, representing a 39.13% increase from RMB 1,365,954,000 in 2019[19]. - The Group plans to acquire a local power plant in 2021, which will add 220 million kWh of electricity and 470,000 tons of steam annually, supporting future energy needs[28]. - The Group's ongoing projects include a 20,000-ton high-performance fluoropolymers project, with the first phase of a 10,000-ton polytetrafluoroethylene plant expected to increase production capacity by 25% upon completion in 2021[28]. Environmental and Social Responsibility - The Group donated RMB 8 million to support pandemic prevention efforts, earning recognition as an "Advanced Private Enterprise in Fighting COVID-19 Pandemic"[10]. - The Group achieved "zero" wastewater discharge in several subsidiaries through significant pollution control efforts[21]. Corporate Governance - The Company has a diverse leadership team with members holding various qualifications, including certified public accountants and registered tax agents[93][94]. - The Company has established various committees, including the Remuneration Committee, Audit Committee, Nomination Committee, Corporate Governance Committee, and Risk Management Committee, to enhance governance practices[196]. - The Board has dealt with matters covering the Group's overall strategy, annual and interim results, risk management, dividend policies, corporate governance, capital, financial, investment, and remuneration during the year ended 31 December 2020[180]. Subsidiaries and Strategic Initiatives - The subsidiary Shandong Dongyue Organosilicone successfully raised RMB 2,070 million in its IPO on ChiNext, providing substantial capital support for further development[13]. - The Group's subsidiary Future Hydrogen Energy is expected to enhance its competitiveness and industry position through a planned independent listing on the Science and Technology Innovation Board[17]. - Dongyue Organosilicone's fundraising project aims to double its production capacity to 300,000 tons for monomers and enhance downstream deep-processing capacity by over double[28]. Financial Position - As of December 31, 2020, the Group's total equity amounted to RMB 10,530,512,000, representing an increase of 17.59% compared to December 31, 2019[71]. - The Group's bank balances and cash totaled RMB 4,275,728,000 as of December 31, 2020, up from RMB 2,943,792,000 in 2019[71]. - The net cash inflow from operating activities for the year was RMB 2,260,565,000, compared to RMB 2,330,301,000 in 2019[71]. Employee and Management - The Group employed 5,576 employees as of December 31, 2020, a decrease from 5,664 employees in 2019[81]. - The remuneration of each Director is determined based on their duties, responsibilities, performance, and the Group's results, with details provided in note 11 of the financial statements[125]. Related Party Transactions - The continuing connected transactions have been reviewed by independent non-executive directors and confirmed to be fair and reasonable[158]. - The Company has complied with the disclosure requirements for related party transactions as per Chapter 14A of the Listing Rules[163].

Financial Performance - In the first half of 2020, the company achieved total revenue of approximately RMB 4,636,363,000, with a gross margin of 21.71% and a pre-tax profit of approximately RMB 505,736,000[10]. - The company recorded revenue of approximately RMB 4,636,363,000 for the six months ended June 30, 2020, a decrease of 23.33% compared to RMB 6,046,967,000 in the same period last year[23]. - The company reported a net profit of approximately RMB 446,747,000 for the period, down from RMB 949,783,000 in the same period last year[23]. - The company’s comprehensive income for the period was approximately RMB 248,184,000, a decrease from RMB 608,187,000 in the previous year, primarily due to a decline in equity investment fair value[23]. - The company reported a total comprehensive income of RMB 608,187,000 for the six months ended June 30, 2020, compared to RMB 495,650,000 for the same period in 2019, representing an increase of approximately 22.7%[89]. - The company’s net profit attributable to shareholders for the six months ended June 30, 2020, was RMB 404,128,000, a decrease from RMB 837,246,000 in the same period of 2019, indicating a decline of approximately 51.8%[115]. - Basic and diluted earnings per share for the period were RMB 0.20, compared to RMB 0.40 in the previous year, a decrease of 50%[84]. Research and Development - The company increased its R&D expenditure to approximately RMB 200,395,000, representing a year-on-year increase of 40.13%, and completed 13 projects related to energy saving, automation, and new product development[11]. - The company has applied for 40 patents during the reporting period, with 14 patents granted, bringing the total number of valid patents to 374[11]. - The company plans to enhance R&D efforts in the second half of the year to improve product quality and develop new products to meet market demands[17]. Market and Industry Challenges - The fluorosilicone industry faced significant challenges due to the pandemic and geopolitical factors, leading to a substantial decline in downstream demand and product prices[10]. - The company emphasized its industry-leading performance despite market pressures, reinforcing its position as a market leader[10]. - The company will focus on safety and environmental management to stabilize production operations amid industry downturns[19]. Financial Position and Capital Management - Total equity reached RMB 10,165,296,000 as of June 30, 2020, reflecting a 13.51% increase from December 31, 2019[41]. - Cash and bank balances increased to RMB 4,746,135,000 as of June 30, 2020, compared to RMB 2,943,792,000 on December 31, 2019, primarily due to funds raised from the independent listing of Dongyue Silicon Materials[41]. - The company maintains a strong financial position with sufficient resources to meet debt obligations and fund daily operations and capital expenditures[41]. - The company’s total assets as of June 30, 2020, amounted to RMB 10,361,080,000, an increase from RMB 8,543,806,000 as of December 31, 2019, representing a growth of approximately 21.2%[86]. - The company reported a total equity of RMB 10,165,296,000 as of June 30, 2020, up from RMB 8,955,623,000 at the end of 2019, indicating an increase of approximately 13.5%[88]. Operational Adjustments and Strategies - The company implemented cost-saving strategies, reducing distribution and sales expenses by 5.94% to approximately RMB 170,309,000 and administrative expenses by 36.25% to approximately RMB 196,656,000[15]. - The company aims to enhance its competitiveness and profitability through increased investment in technology and environmental initiatives following the successful listing of its subsidiary[13]. - The company will strengthen risk management by assessing international trade risks and enhancing internal controls, including better fund management and compliance awareness[21]. Spin-off and Subsidiary Developments - The company successfully listed its subsidiary, Dongyue Silicon Materials Co., Ltd., on the Shenzhen Stock Exchange on March 12, 2020, enhancing its financing channels and development potential[13]. - The company plans to spin off Dongyue Future Hydrogen Energy Materials Co., Ltd. for an independent listing on the Shanghai Stock Exchange's Sci-Tech Innovation Board, with an initial round of financing of RMB 300 million completed on June 9, 2020[14]. - The company completed the spin-off of Shandong Dongyue Silicon Materials Co., Ltd., raising approximately RMB 1,985,849,000 in net cash proceeds from the issuance of 300 million new A-shares at RMB 6.90 per share[139]. Shareholder and Governance Information - The company did not declare an interim dividend for the six months ended June 30, 2020, consistent with the previous year[47]. - The board believes that having the same person serve as both chairman and CEO enhances strong leadership and operational efficiency[63]. - The company has complied with the corporate governance code, except for a deviation regarding the separation of the roles of chairman and CEO[62]. Employee and Talent Management - The company has adopted an employee stock option plan with a total cash injection not exceeding HKD 800 million, aimed at retaining and attracting talent[65]. - As of June 30, 2020, the trustee has purchased shares worth approximately HKD 221.36 million under the employee stock option plan[65]. - The short-term employee benefits for directors and key management personnel were RMB 18,274,000 for the six months ended June 30, 2020, compared to RMB 19,299,000 in the same period of 2019[149].

Financial Performance - The Group recorded total revenue of approximately RMB12,958,692,000, with a gross margin of 26.59% and a net profit of approximately RMB1,742,281,000[10]. - For the year ended December 31, 2019, the Group recorded revenue of approximately RMB12,958,692,000, a decrease of 8.9% from RMB14,218,937,000 in the previous year[42]. - The gross profit margin decreased to 26.59% (2018: 31.87%), and the operating results margin was 17.50% (2018: 23.50%)[42]. - Profit before tax was approximately RMB2,120,300,000, down from RMB3,234,899,000 in 2018, while net profit decreased to approximately RMB1,742,281,000 from RMB2,434,699,000[42]. - The fluorine-containing polymers segment's external sales were RMB3,432,978,000, representing a year-on-year decrease of 11.52%[49]. - The fluorine-containing polymers segment recorded a profit of RMB460,282,000, a decrease of 49.70% compared to RMB915,014,000 in the previous year[49]. - The refrigerants segment's external sales decreased by 17.86% to RMB2,677,890,000 from RMB3,260,154,000 in the previous year, accounting for 20.66% of the Group's total external sales (2018: 22.93%)[51]. - The profit from the refrigerants segment was RMB355,368,000, representing a decrease of 55.88% from a profit of RMB805,467,000 in 2018[51]. - The organic silicone segment's external sales decreased by 20.53% to RMB2,686,292,000 from RMB3,380,373,000 in the previous year, accounting for 20.73% of the Group's total external sales (2018: 23.77%)[53]. - The profit from the organic silicone segment was RMB507,410,000, a decrease of 48.44% from a profit of RMB984,040,000 in the previous year[53]. - The property development segment's external sales increased by 672.95% to RMB1,852,300,000, accounting for 14.29% of the Group's total external sales[63]. - The property development segment's profit rose by 446.16% to RMB357,867,000 compared to 2018[63]. - The external sales of the dichloromethane, PVC, and liquid alkali segment decreased by 12.69% to RMB1,505,076,000, accounting for 11.61% of the Group's total external sales[60]. - The dichloromethane segment recorded a profit of RMB256,788,000, representing a year-on-year decrease of 44.90%[60]. - The Group's total equity as of December 31, 2019, was RMB8,955,623,000, a decrease of 4.6% compared to December 31, 2018[68]. - The Group's bank balances and cash totaled RMB2,943,792,000 as of December 31, 2019, down from RMB3,331,147,000 as of December 31, 2018, primarily due to decreased sales and increased dividends and fixed asset investments[69]. - The net cash inflow from operating activities for the year was RMB2,330,301,000, compared to RMB3,873,382,000 for the year ended December 31, 2018[69]. Research and Development - Research and development expenses significantly increased to approximately RMB330 million, representing an 85.63% year-on-year growth, with 84 patents applied and 20 granted during the year[15]. - The Group launched 41 major projects in new products, capacity expansion, technological upgrades, environmental protection, and automation improvements during the year[15]. - The new generation of chlor-alkali ion membrane DF2807 successfully passed the first operation in Shanghai, marking a new era for high-quality market applications of Dongyue's chlor-alkali membranes[15]. - The Group established 16 joint laboratories with universities and research institutions, and initiated 46 collaborative projects, integrating 215 high-end talents[15]. - The Group's comprehensive strength in technology, construction, management, service, and operation was significantly improved, as reflected in the promotion of Dongyue Union Property from Level 3 to Level 2 development qualification[14]. - Dongyue Chemicals was recognized as a high and new technology enterprise, marking the Group's progress in technological transformation[27]. Market Strategy and Operations - The Group aims to strengthen research and development to ensure sustainable development and maintain competitive advantage[33]. - The Group's efforts in supplier management optimized the supplier structure, significantly reducing procurement costs[21]. - The Group will focus on reducing production costs by optimizing resource and energy consumption, maintenance expenses, and procurement processes in 2020[34]. - The Group aims to enhance operational benchmarks by aligning with national and international standards for safety, environmental protection, and product quality[34]. - The Group plans to improve project construction efficiency through standardized management and comprehensive assessments on quality, cost, safety, and environmental protection[35]. - The Group will further promote informatization and intelligentization, aiming for unmanned production and the integration of big data across all operational aspects in 2020[36]. - The Group has implemented measures to mitigate the impact of the COVID-19 pandemic, including increasing sales efforts and controlling operating costs[40]. - The Group has been developing steadily in the fluorosilicone industry for 32 years, leveraging advantages in scale, industrial chain, technical level, and management experience[40]. Corporate Governance and Management - The company has a strong leadership team with extensive experience across different industries, enhancing its strategic decision-making capabilities[86]. - The Group's management includes professionals with backgrounds in state-owned enterprises and government, contributing to its operational expertise[86]. - The executive team is well-qualified, with members holding advanced degrees and professional certifications, ensuring sound financial management and corporate governance[86]. - The Company has maintained sufficient public float of its issued shares as required under the Listing Rules[172]. - The Board has reviewed corporate governance practices and confirmed compliance with the Corporate Governance Code during the year ended December 31, 2019[180]. - The Board currently comprises nine Directors, with no changes in structure during the reporting period[182]. - The Board held four meetings and one annual general meeting during the year under review[184]. - The corporate governance committee is responsible for reviewing the Company's policies and practices on corporate governance[197]. - Directors are aware of their responsibilities in maintaining high standards of corporate governance[196]. Shareholder Information and Dividends - The Board recommended a final dividend of HK$0.23 per share, down from HK$0.35 in 2018[42]. - The company reported a final dividend of HKD 0.23 per share for the fiscal year ending December 31, 2019, compared to HKD 0.35 per share in 2018, representing a decrease of approximately 34.3%[100]. - The Directors did not recommend an interim dividend for the six months ended June 30, 2019, consistent with the previous year[104]. - The Group's distributable reserves as of December 31, 2019, amounted to RMB 1,156,594,000, with a proposed final dividend of HK$48,688,000 (approximately RMB 42,797,000)[108]. Connected Transactions - The Group entered into a land disposal agreement for the sale of land use rights for RMB19,764,000[156]. - The Group renewed a raw material master supply agreement with Shandong Dongyue Organosilicon Materials Co., Ltd for the supply of raw materials[158]. - The actual amount for the financial services master agreement with Macro-link was RMB408 million, close to the annual cap of RMB410 million[159]. - The Company has established a framework for raw materials supply agreements that includes specific annual caps for both sales and purchases, ensuring a structured supply chain[163]. - The financial services agreement with Marco-link Finance is part of the Company's strategy to maintain liquidity and operational efficiency through connected financial services[168]. - The continuing connected transactions have been reviewed by independent non-executive directors, confirming they were conducted in the ordinary course of business and on normal commercial terms[170].

Financial Performance - The company reported revenue of approximately RMB 6,046,967,000 for the six months ended June 30, 2019, a decrease of 17.99% compared to RMB 7,373,158,000 for the same period in 2018[17]. - Gross profit margin decreased to 28.31% from 33.61% year-on-year, while operating profit margin fell to 18.63% from 25.99%[17]. - The company recorded a pre-tax profit of approximately RMB 1,071,913,000, down from RMB 1,845,417,000 in the previous year[17]. - The company reported a net profit attributable to shareholders of RMB 837,246,000 for the six months ended June 30, 2019, down from RMB 1,207,272,000 in the same period of 2018, indicating a decrease of about 30.7%[113]. - The company’s income tax expense for the six months ended June 30, 2019, was RMB 122,130,000, a significant decrease from RMB 480,250,000 in the same period of 2018[108]. - The company’s total sales from external sources reached RMB 6,046,967,000 for the reporting period, compared to RMB 7,373,158,000 in the previous year, reflecting a decline of approximately 18%[105]. Operational Performance - The company's operating performance declined during the review period due to changes in domestic and international economic conditions, with the domestic economy experiencing a slowdown and international trade facing challenges[11]. - Despite market instability, the company maintained a high operating rate and achieved a slight increase in sales volume for several key products, demonstrating its strong market position[11]. - Automation and information technology improvements led to a significant reduction in downtime caused by equipment failures, enhancing production efficiency[13]. - The company’s research and development efforts have resulted in a reduction in raw material and electricity consumption, helping to mitigate the impact of market conditions on performance[11]. Research and Development - Research and development expenses significantly increased, with 12 technical transformation and environmental protection projects completed, and 9 patents applied for, reflecting the company's commitment to innovation[11]. - The company established subsidiaries in Beijing and Shanghai, and built research and development centers to attract professional talent and strengthen its R&D team[13]. - New products, including high-density low-pressure chlorine-alkali ion membranes and ETFE resins, have been developed, laying a foundation for future market expansion[11]. - The company plans to enhance R&D efforts focusing on technological and product innovation to improve production efficiency and reduce manufacturing costs[16]. Financial Position - Total equity as of June 30, 2019, was RMB 8,957,457,000, a decrease of 4.63% from December 31, 2018[33]. - Cash and bank balances reached RMB 3,388,451,000, up from RMB 3,331,147,000 as of December 31, 2018[33]. - Total assets as of June 30, 2019, were RMB 9,487,606,000, a decrease from RMB 9,818,135,000 at the end of 2018[72]. - The debt ratio was -18.32%, indicating a net cash position where cash and cash equivalents exceed total debt[34]. Cost Management - The company will implement cost-saving measures and strict expense controls to navigate the challenging industry environment[16]. - Distribution and selling expenses slightly increased by 0.1% to RMB 181,055,000, attributed to increased sales volume despite declining product prices[29]. - Administrative expenses decreased by 22.06% to RMB 308,478,000 from RMB 395,789,000 in the same period last year[30]. - Financing costs increased by 41.69% to RMB 54,619,000 from RMB 38,547,000 due to a higher average monthly loan balance[31]. Environmental Commitment - The company’s wastewater discharge has continuously decreased, with some subsidiaries achieving zero wastewater discharge, reflecting its commitment to environmental protection[11]. - Several subsidiaries have been recognized as high-tech enterprises, benefiting from preferential tax rates and saving substantial tax expenses[13]. - The company will continue to strengthen safety and environmental management despite high costs, ensuring normal production operations[16]. Risk Management and Corporate Governance - The company has established a risk management system, which includes identifying risks, assessing potential financial losses, and prioritizing risk management measures[49]. - The board has reviewed the effectiveness of the risk management and internal control systems, deeming them effective and sufficient[49]. - The company has complied with the corporate governance code, except for the separation of roles between the chairman and CEO, which is currently held by the same individual[51]. - The company emphasizes that risk management systems are designed to manage rather than eliminate risks associated with achieving business objectives[49]. Shareholder Information - As of June 30, 2019, major shareholders include XinHuaLian International holding 466,646,818 shares, representing 22.1% of the issued share capital[62]. - The company has adopted an employee stock option plan with a total cash injection not exceeding HKD 800 million, purchasing shares worth approximately HKD 125.23 million as of June 30, 2019[52]. - The company did not declare an interim dividend for the six months ended June 30, 2019[37]. - The company declared an interim dividend of HKD 0.35 per share, totaling RMB 635,619,000, which was paid on the reporting date[111].

Financial Performance - In 2018, Dongyue Group recorded total revenue of RMB 14,218,937,000, a year-on-year increase of 40% compared to RMB 10,137,137,000 in 2017[7]. - The gross profit margin reached 31.87%, an increase of 1.64 percentage points from the previous year[8]. - Profit before tax amounted to RMB 3,234,899,000, representing a year-on-year increase of 51.04%[8]. - For the year ended December 31, 2018, the Group recorded revenue of approximately RMB14,218,937,000, representing an increase of 40.27% over RMB10,137,137,000 in the previous year[42]. - The gross profit margin increased to 31.87% (2017: 30.23%) and the operating results margin was 23.50% (2017: 22.21%) for the year ended December 31, 2018[42]. - The Group recorded profit before tax of approximately RMB3,234,899,000 (2017: RMB2,141,773,000) and net profit of approximately RMB2,434,699,000 (2017: RMB1,681,799,000) during the review year[42]. - Basic earnings per share was RMB1.00 (2017: RMB0.76) for the year ended December 31, 2018[42]. Research and Development - R&D investment increased by 84.47% compared to 2017, highlighting the company's commitment to innovation[14]. - The company completed 39 successful projects in technological innovation and automation enhancement during the year[14]. - New products such as fluorine-containing polymers DF-2049 and DF-161 were developed for high-end applications, achieving a 70% replacement rate for PFOA[14]. - The Group applied for 40 patents and was granted 31, bringing the total number of awarded patents to 361[14]. - Joint R&D projects with universities and research institutes yielded initial results in areas such as perfluoropolyether lubricants and high-performance flame retardant silicone rubber[15]. Environmental and Safety Management - The Group established a standardized safety and environmental management system, effectively reducing safety risks across subsidiaries[16]. - The construction of a water recycling plant in major production areas was completed, enhancing water resource utilization[16]. - The Group aims to enhance water recycling and strictly manage waste disposal to improve environmental protection in 2019[31]. Corporate Strategy and Market Position - The Group plans to continue the spin-off listing of Dongyue Organosilicone and promote its domestic IPO to achieve breakthroughs in the capital market[35]. - The Group aims to strengthen corporate asset management and focus on investing in the fluorosilicone silicon industry and hydrogen energy projects[35]. - In 2019, the Group plans to increase market research efforts to secure market share while promoting new products and entering high-end markets[26]. - The Group will focus on maximizing profits through improved supplier management, procurement quality, and cost control in 2019[32]. Employee and Management Initiatives - The Group adopted an employee option scheme in December 2018, granting options to employees over the next five years to improve employee benefits[24]. - The Group will implement an employee option scheme and complete the construction of a catering center to improve employee benefits[38]. - The Group employed a total of 5,876 employees as of December 31, 2018, a slight increase from 5,862 employees in 2017[100]. Segment Performance - The Polymers segment generated revenue of RMB3,879,793,000 with an operating results margin of 23.58% for the year ended December 31, 2018[45]. - The Organic Silicone segment achieved revenue of RMB3,380,373,000 with an operating results margin of 29.11% for the year ended December 31, 2018[45]. - The Refrigerants segment recorded revenue of RMB3,260,154,000 with an operating results margin of 24.71% for the year ended December 31, 2018[45]. - The fluoropolymer segment's revenue was RMB3,879,793,000, a year-on-year increase of 32.51%, accounting for 27.29% of the Group's total revenue[51]. - The profit from the fluoropolymer segment increased by 51.23% to RMB915,014,000 compared to RMB605,053,000 in the previous year[51]. - The refrigerant segment's revenue was RMB3,260,154,000, representing a 30.29% increase from RMB2,502,275,000 in the previous year, accounting for 22.93% of the Group's total revenue[55]. - The profit from the refrigerant segment rose by 36.88% to RMB805,467,000 compared to RMB588,442,000 in the previous year[55]. - The organic silicone segment's revenue increased by 39.21% to RMB3,380,373,000 from RMB2,428,256,000, accounting for 23.77% of the Group's total revenue[63]. - The profit for the organic silicone segment rose by 126.82% to RMB984,040,000 from RMB433,836,000 in the previous year[63]. Corporate Governance and Leadership - The Company has a strong management team with over 30 years of experience in the chemical manufacturing industry, led by President Mr. Wang Weidong[119]. - The Company has appointed several experienced executives with extensive backgrounds in finance and management, enhancing its leadership capabilities[111]. - The Board comprises nine Directors, including three independent non-executive Directors, representing one-third of the Board[200]. - The Company has adopted and complied with the Corporate Governance Code during the year ended 31 December 2018, except for a deviation regarding the roles of chairman and chief executive officer[197]. Shareholder and Dividend Information - The company reported a final dividend of HKD 0.35 per share for the fiscal year 2018, compared to HKD 0.30 per share in 2017, representing an increase of approximately 16.67%[124]. - The Group's distributable reserves as of December 31, 2018, amounted to RMB1,191,596,000, with HK$739,091,309 (approximately RMB628,227,000) proposed as the Final Dividend[137]. - The Directors recommended a final dividend of HK$0.35 per share for the year 2018, an increase from HK$0.30 per share in 2017[127]. Connected Transactions and Agreements - The Group entered into connected transactions, including a capital injection of approximately RMB180,519,481 from Cheung Shek Investment and RMB234,675,325 from Zibo Xiaoxi into Dongyue Organic Silicone[168][169]. - The Group has agreed to supply raw materials including chloromethane, steam, waste gas (hydrogen), liquid alkali, and refrigerant to Dongyue Organosilicone for its production and operations[178]. - The Company entered into a renewal raw materials master supply agreement with Dongyue Organosilicone, agreeing to supply raw materials for its production and operations until December 31, 2019[180]. Financial Position and Capital Management - As of December 31, 2018, the Group's total equity amounted to RMB9,392,199,000, reflecting an increase of 28.44% compared to the previous year[84]. - The Group's bank balances and cash totaled RMB3,331,147,000, an increase from RMB1,471,116,000 in 2017, mainly due to higher sales during the year[84]. - As of December 31, 2018, the Group's total borrowings amounted to RMB2,082,450,000, an increase from RMB1,820,821,000 as of December 31, 2017[91]. - The Group's gearing ratio was -15.33% as of December 31, 2018, compared to 4.56% as of December 31, 2017, indicating a "net cash" positive position[91].