智通财经7月24日电，截至发稿，西部水泥(02233.HK)涨16.48%、山水水泥(00691.HK)涨5.08%、华新水 泥(06655.HK)涨2.51%、东吴水泥(00695.HK)涨2.33%。 部分港股水泥股延续涨势 西部水泥涨超16% ...

Financial Performance - Total revenue for 2024 was HKD 223,604,000, a decrease of 27.3% compared to HKD 307,263,000 in 2023[6] - Operating loss for 2024 was HKD 51,672,000, compared to a loss of HKD 39,339,000 in 2023, indicating a worsening performance[10] - The total assets decreased to HKD 1,042,235,000 in 2024 from HKD 1,153,702,000 in 2023, reflecting a decline of 9.7%[11] - Total liabilities increased to HKD 565,390,000 in 2024, up from HKD 516,963,000 in 2023, marking an increase of 9.4%[11] - The net cash flow from operating activities was a negative HKD 71,565,000 in 2024, an improvement from a negative HKD 112,295,000 in 2023[9] - The company reported a basic and diluted loss per share of HKD 0.106 for 2024, compared to HKD 0.066 in 2023[6] - The total equity decreased to HKD 476,845,000 in 2024 from HKD 636,739,000 in 2023, a decline of 25.1%[11] - The group recorded a gross loss of approximately HKD 13,920,000 for the reporting period, with the cement segment contributing a gross loss of about HKD 5,570,000, an increase of approximately 129.1% compared to 2023[41] - The rare earth segment reported a gross loss of approximately HKD 8,408,000, which is an increase of about 303.1% compared to the same period in 2023, resulting in a gross margin of -21.7%[41] - The group’s net profit margin for the reporting period was approximately -30.9%, a decline of about 17.5% compared to -13.4% in 2023[48] Cement Segment Performance - The cement production for 2024 reached 775,000 tons, with a significant decline in output compared to the previous year, marking the lowest production level in 15 years[12] - The cement sales volume for the year was approximately 778,000 tons, resulting in a revenue of about HKD 184,712,000, a decrease of approximately 30.5% compared to the previous year[13][20] - The group recorded total revenue of approximately HKD 223,604,000 for the reporting period, with the cement segment contributing about HKD 184,782,000, down by HKD 81,347,000 or 30.6% from the previous year[17] - The cement segment recorded total revenue of approximately HKD 184,712,000, a decrease of about 30.5% compared to HKD 265,908,000 in 2023, primarily due to intensified market competition and a downturn in the real estate sector[36] - The average sales price of PO 32.5 cement was HKD 217 per ton, while PO 42.5 cement was HKD 223 per ton, contributing to a total cement sales volume of approximately 777,000 tons in 2024, down 17.3% from 2023[36] - The company plans to enhance internal management and cost control in the cement segment to improve profitability amidst a challenging market environment[22] Rare Earth Segment Performance - The rare earth segment generated revenue of approximately HKD 38,764,000, with magnetic material sales accounting for about 47.0% of this revenue[14][20] - The average price of metal neodymium decreased by approximately 25% in 2024, impacting the overall profitability of the rare earth segment[14] - The company has implemented a series of technological upgrades in the rare earth materials production workshop, which commenced production in February 2024[15] - The rare earth segment is expected to grow, driven by technological innovation and market orientation, with a focus on cost reduction and efficiency improvement[23] - The company aims to innovate and improve product quality in the rare earth segment, responding to increasing customer expectations[67] Market Conditions - In 2024, the cement industry faced a nearly double-digit decline in demand due to ongoing adjustments in the real estate sector, leading to significant price drops and profit declines[25] - The national cement production in 2024 was 1.825 billion tons, a year-on-year decrease of 9.5%, marking the lowest production level in 15 years[26] - The average national cement market price in 2024 was 384 RMB/ton, a year-on-year decline of 2.6%[27] - The real estate development investment in 2024 was 1,002.8 billion RMB, a decline of 10.6% compared to the previous year[26] - The real estate market is expected to stabilize in 2025, with policies aimed at boosting market confidence, although cement demand indicators have not yet improved[65] Cash Flow and Investments - Investment activities generated a net cash flow of HKD 149,505,000 in 2024, an increase from HKD 125,533,000 in 2023[9] - As of December 31, 2024, the group’s cash and cash equivalents were approximately HKD 135,495,000, an increase of about 518.8% from HKD 21,895,000 in 2023[51] - The group’s total borrowings increased by approximately 14.7% to HKD 299,755,000 as of December 31, 2024, compared to HKD 262,641,000 in 2023[52] - The capital expenditure for the group in 2024 was approximately HKD 33,963,000, an increase from HKD 15,210,000 in 2023, primarily due to increased construction in the cement segment[56] Corporate Governance and Management - The company has established an ESG working group to oversee and align ESG strategies with operational strategies[98] - The company has adopted a long-term incentive plan linking part of the executive directors' remuneration to corporate and individual performance[119] - The independent non-executive directors have confirmed their independence according to the listing rules, ensuring compliance with the independence guidelines[115] - The company has established a risk prevention strategy by purchasing liability insurance for all directors[167] - The board of directors is responsible for maintaining an effective internal control system to safeguard the group's assets and shareholders' interests, ensuring the system is adequate and effective as of December 31, 2024[185] Shareholder Information - The company declared a special dividend of HKD 0.136 per share, which will be distributed on March 31, 2025, due to tax processing delays[94] - As of December 31, 2024, the company's distributable reserves amounted to approximately HKD 5,437,000, a significant decrease from HKD 139,144,000 on December 31, 2023[108] - The company has not proposed a final dividend for the year ending December 31, 2024[95] - The largest customer accounted for 4.60% of total sales, while the top five customers combined represented 18.12%[144] - The largest supplier contributed 32.96% of total procurement, with the top five suppliers together accounting for 51.47%[144] Management Team - Liu Dong has over 10 years of experience in the Hong Kong capital market and investor relations[77] - Wu Junxian has been with the group since March 2009, holding various management positions[78] - Jiang Xueming has served as chairman of Dongfang Holdings International Group since 1995[79] - Xie Yingxia has held multiple roles including financial director and vice president at Dongfang Holdings Group[80] - Cao Guanyu has extensive banking and financial experience, previously serving as deputy general manager at Bank of China Singapore Branch[81] - Yu Xiaoying has over 20 years of accounting and finance experience, previously working at Deloitte and Visa[82] - Suo Suo has over 25 years of experience in banking, private equity, and asset management[83] - Yu Liwen has over 20 years of accounting, finance, and investment experience, previously working at PwC and Citigroup[84] Audit and Compliance - The company’s financial statements for the year ending December 31, 2024, were audited by Hong Kong Lixin Dehao CPA Limited[145] - The independent auditor, Hong Kong Li Xin De Hao CPA Limited, received a total remuneration of HKD 1,512,000 for the fiscal year ending December 31, 2024, which includes HKD 1,362,000 for audit services and HKD 150,000 for non-audit services[199] - The audit committee ensures that internal and external auditors' work is coordinated and that the internal audit function has sufficient resources and appropriate status[190] Future Outlook - The company expects to continue facing challenges in the upcoming year, with a focus on cost management and operational efficiency[10] - The group anticipates that stimulus policies for equipment updates and recycling will drive new demand in consumption and industrial sectors by 2027[23] - The company plans to achieve breakthroughs in oil pump motors, water pump motors, and elevators by 2025, expanding its product offerings in the direct current brushless permanent magnet synchronous motor sector[33]

Financial Performance - The group's revenue for the year ended December 31, 2024, was approximately HKD 223,604,000, a decrease of about HKD 83,659,000 or 27.2% compared to HKD 307,263,000 for the year ended December 31, 2023[6] - The gross margin declined from approximately -1.5% for the year ended December 31, 2023, to about -6.2% in the reporting period[6] - The loss attributable to the company's owners increased from approximately HKD 36,525,000 for the year ended December 31, 2023, to about HKD 58,630,000 in the reporting period[6] - Operating loss for the reporting period was HKD 51,672,000, compared to HKD 39,339,000 for the previous year[7] - The total comprehensive loss for the year was HKD 89,791,000, compared to HKD 55,661,000 for the previous year[8] - The company reported a total comprehensive loss of HKD 76,056,000 for the year ended December 31, 2024, compared to a loss of HKD 52,358,000 in 2023, representing an increase of 45.2%[11] Assets and Liabilities - Non-current assets totaled HKD 430,227,000 as of December 31, 2024, an increase from HKD 370,899,000 in 2023[9] - Current assets decreased to HKD 612,008,000 from HKD 782,803,000 in the previous year[9] - Current liabilities increased to HKD 383,353,000 from HKD 337,310,000 in 2023[10] - The company's net assets decreased to HKD 476,845,000 from HKD 636,739,000 in the previous year[10] - The company’s total equity attributable to owners decreased to HKD 387,315,000 as of December 31, 2024, from HKD 534,855,000 at the beginning of the year, reflecting the impact of losses and currency translation adjustments[11] Cash Flow and Liquidity - The cash and cash equivalents increased by HKD 116,488,000 in 2024, compared to an increase of HKD 12,455,000 in 2023, indicating a significant improvement in liquidity[14] - The company incurred a net cash outflow from operating activities of HKD 71,565,000 in 2024, compared to HKD 112,295,000 in 2023, showing a reduction in cash burn[12] - The company’s cash flow from financing activities generated a net inflow of HKD 38,548,000 in 2024, compared to a net outflow of HKD 783,000 in 2023, indicating improved financing conditions[13] - The company’s cash and cash equivalents at the end of 2024 stood at HKD 135,525,000, a substantial increase from HKD 21,895,000 at the end of 2023, reflecting enhanced liquidity management[14] Revenue Segmentation - Total revenue for the year ended December 31, 2024, was HKD 223.6 million, with segment revenues from cement production and sales at HKD 184.8 million, magnetic materials at HKD 38.8 million, and biotechnology research and development at HKD 58,000[26] - The cement production and sales segment generated revenue of HKD 266,129,000, while the magnetic materials and other applications segment contributed HKD 10,823,000[29] - The company reported a total loss of HKD 69.1 million for the year, with unallocated expenses amounting to HKD 8.7 million and a tax credit of HKD 3.1 million[26] Operational Efficiency - The company reported a decrease in trade and other payables by HKD 48,621,000 in 2024, compared to a decrease of HKD 100,949,000 in 2023, reflecting changes in operational efficiency[12] - The company reported a cost of goods sold of HKD 234,841,000 for the year ended December 31, 2024[35] - The company plans to continue expanding its market presence and developing new products in the cement and magnetic materials sectors[29] Discontinued Operations - For the year ending December 31, 2024, the group reported a net loss from discontinued operations of approximately HKD 16,814,000, compared to HKD 4,652,000 in 2023, representing a year-over-year increase of 261%[37] - The basic and diluted loss per share from discontinued operations was approximately HKD 0.028 for 2024, compared to HKD 0.005 for 2023, indicating a significant increase in losses per share[40] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring accountability and transparency[119] - The audit committee has reviewed the consolidated financial statements for the year ending December 31, 2024, confirming compliance with applicable accounting standards[122] - The company has complied with all applicable provisions of the corporate governance code during the reporting period[120] Market Conditions - The average national cement market price was HKD 384 per ton in 2024, a decrease of 2.6% compared to the previous year[73] - The total cement production in China for 2024 was 1.825 billion tons, a decline of 9.5% year-on-year, marking the lowest production in fifteen years[72] - The company's management reported a significant decline in cement demand due to ongoing adjustments in the real estate sector, leading to intensified price competition[71] Future Outlook - The company anticipates improvements in cement demand due to government policies aimed at stabilizing the real estate market, despite ongoing declines in national real estate development investment and new construction area[113] - The rare earth sector is expected to grow, driven by policies promoting equipment upgrades and recycling, with a focus on energy-saving and green materials[114] - The company aims to enhance product innovation and quality in the rare earth sector, responding to increasing customer expectations and market demands[115]

DONGWU CEMENT INTERNATIONAL LIMITED 東吳水泥國際有限公司 (於開曼群島註冊成立的有限公司) 股份代號: 695 東吳水泥國際有限公司 中期報告2024 目錄 釋義 2 公司資料 5 管理層討論與分析 7 其他資料 22 財務報告 26 1 東吳水泥國際有限公司 中期報告2024 釋義 於本報告內，除非文義另有所指，下列詞語具有以下涵義： | --- | --- | --- | |--------------|-------|----------------------------------------------------------------------------------------------| | | | | | 相聯法團 | 指 | 具有《證券及期貨條例》所賦予此詞彙之相同涵義 | | 聯繫人 | 指 | 具有上市規則所賦予此詞彙之相同涵義 | | 審核委員會 | 指 | 本公司的審核委員會 | | 董事會 | 指 | 本公司的董事會 | | 本公司 | 指 | 東吳水泥國際有限公司，於開曼群島註冊成立之有 | | | | 限公司，於聯交所主板上市 | ...

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，概不對因本公告全部或任何 部份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。 1 Dongwu Cement International Limited 東吳水泥國際有限公司 （在開曼群島註冊成立的有限公司） （股份代號：695） 截至2024年6月30日止六個月中期業績公告 東吳水泥國際有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈，本公司及 其附屬公司（統稱為「本集團」）按照香港聯合交易所有限公司（「聯交所」）證券上市規 則（「上市規則」）中相關規定而編製截至2024年6月30日止六個月（「報告期」）的未經 審核綜合業績連同2023年同期之相關比較數字。 | --- | --- | |-------|------------------------------------------------------------------------------------------------------------------------------------ ...

Acquisition and Strategic Focus - The company acquired a 62.5% stake in Ganzhou Chengzheng Rare Earth New Materials Co., marking a strategic shift towards rare earth, new energy, and energy-saving industries[4] - The company aims to leverage its expertise in rare earth exploration and production to enhance its position in the rare earth and permanent magnet business[200] Environmental Performance - Nitrogen oxide emissions were reduced by 81.70% compared to 2022, reflecting significant progress in emissions management[14] - The total energy consumption for the year 2023 was 541,898.62 GJ, with an energy consumption density of 1.96 GJ per thousand HKD revenue, achieving a 69.56% reduction compared to 2022[63] - The greenhouse gas emissions for the year saw a significant decrease due to the reduced use of self-produced clinker, with a notable drop in emissions reported[41] - The total greenhouse gas emissions reported were 408,072.01 tons of CO2 equivalent, with scope 1 and scope 2 emissions being monitored and reported[39] - The group reported a reduction in nitrogen oxide emissions to 13,231 kg in 2023 from 72,283 kg in 2022, indicating improved environmental performance[121] - The group reported a significant decrease in waste gas emissions due to a shift towards using commercial clinker[97] Compliance and Risk Management - Environmental supervision assessments met all relevant legal and regulatory standards throughout the year[29] - The company achieved a 100% compliance rate for pollutant emissions, dust and noise emissions, and solid waste classification and disposal[58] - A total of 1,313 environmental factors were identified in 2023, with 28 classified as significant[32] - A total of 1,051 potential hazards were identified, with 26 classified as medium to high risk, leading to enhanced risk management measures[80] - The group strictly adhered to environmental laws and regulations, enhancing its emergency response mechanisms for environmental incidents[105] Employee Engagement and Training - A total of 871 employees participated in safety training, accumulating 210 hours of training[85] - The company conducted a total of 682 training sessions covering various topics, achieving a training coverage rate of 100%[132] - The company has implemented diverse training programs to align employee career development with corporate growth strategies[132] - The company focused on enhancing employee engagement by actively soliciting feedback to improve training programs[132] Financial Performance - The company reported a loss attributable to shareholders of approximately HKD 36,525,000, with a basic loss per share of HKD 0.066 for the year[178] - The company recorded total revenue of HKD 307,263,000 for the year, with the cement segment contributing approximately HKD 266,129,000, a decrease of 28.5% compared to the same period in 2022[178] - The cost of sales increased to HKD 311,750,000, resulting in a gross loss of HKD 4,487,000, compared to a gross profit of HKD 3,377,000 in the previous year[191] - Operating loss for 2023 was HKD 43,948,000, an improvement from a loss of HKD 56,351,000 in 2022[191] - The company experienced a net cash outflow of HKD 112,295,000 from operating activities in 2023, compared to a cash inflow of HKD 124,475,000 in 2022[190] Community and Social Responsibility - The group has set a target for community contributions and is actively exploring opportunities to enhance local community development[118] - The company did not allocate any funds for charitable contributions in 2023, compared to HKD 115,000 in 2022[142] Safety and Health - The group recorded zero incidents of major casualties, fires, or occupational diseases in 2023, with general injury rates maintained below 1%[83] - The group has maintained a zero fatality rate in workplace accidents over the past three years, demonstrating a strong commitment to employee health and safety[108] - The group implemented a closed-loop water recycling system, contributing to a reduction in wastewater generation[104] Market and Industry Trends - The cement industry faced severe challenges in 2023, with a significant decline in demand due to the real estate sector's ongoing adjustment[193] - The demand for rare earth permanent magnet materials is expected to increase significantly, supported by national policies and the growing clean energy market[200]

Financial Performance - For the period from August 1, 2023, to December 31, 2023, the group recorded total sales of approximately HKD 10,021,000, with the breakdown as follows: electrical sales HKD 790, magnetic material sales HKD 2,410, negative electrode and oxide sales HKD 2,802, electroplating processing HKD 1,249, and sintering services HKD 3,572[2][3]. - The group reported a gross loss of approximately HKD 4,487,000 for the reporting period, with the cement segment contributing a gross loss of about HKD 2,431,000, a decrease of approximately 172% compared to the previous year's loss of HKD 3,377,000[3]. - The gross profit margin for 2023 was approximately -0.9%, a decline of about 1.8% from the previous year's margin of approximately 0.9%, primarily due to intensified market competition and high upstream raw material costs[3]. - The group's revenue for the reporting period was approximately HKD 307,263,000, a decrease of about HKD 65,075,000 or 17.5% compared to HKD 372,338,000 for the year ended December 31, 2022[53]. - The gross loss for 2023 was HKD 4,487 thousand, compared to a gross profit of HKD 3,377 thousand in 2022, indicating a significant shift in profitability[54]. - The total comprehensive loss for the year was HKD 55,661 thousand in 2023, down from HKD 101,449 thousand in 2022, indicating an improvement of approximately 45%[54]. - The company reported a net loss of HKD 41,178 thousand for the year, slightly improved from a net loss of HKD 43,073 thousand in 2022, indicating a reduction of about 4.4%[54]. Cash Flow and Assets - As of December 31, 2023, the group's cash and cash equivalents amounted to approximately HKD 21,895,000, an increase of about 185.8% from HKD 7,662,000 as of December 31, 2022[10]. - The operating cash flow before changes in working capital showed a loss of HKD (25,710) compared to a loss of HKD (32,066) in the previous year[35]. - Cash generated from investment activities was HKD 125,533,000, a significant improvement from a cash outflow of HKD (248,666,000) in the previous year[36]. - The total assets as of December 31, 2023, amounted to HKD 1,034,643,000, while total liabilities were HKD 454,366,000[74]. - Total current assets increased to HKD 782,803 thousand in 2023 from HKD 630,364 thousand in 2022, showing a growth of about 24%[56]. - Total current liabilities decreased to HKD 337,310 thousand in 2023 from HKD 418,265 thousand in 2022, a reduction of approximately 19.4%[58]. - The company's total liabilities decreased from HKD 223,619,000 in 2022 to HKD 178,210,000 in 2023, reflecting a reduction in financial obligations[123]. Segment Performance - The segment performance for cement production showed a loss of HKD (36,782,000)[74]. - The group's revenue from the cement production and sales segment for the year ended December 31, 2023, was approximately HKD 302,222,000, a decrease of 18.7% from HKD 371,737,000 in 2022[105]. - Revenue from the largest external independent customer in the cement production and sales segment was approximately HKD 35,705,000, accounting for 11.62% of the group's total revenue, down from 12.64% in 2022[104]. - The cement segment's sales volume in 2023 was approximately 939,000 tons, a decrease of about 4.4% compared to 2022, with sales revenue of approximately HKD 265,908,000, down about 28.5%[200]. - The rare earth segment recorded a gross loss of approximately HKD 2,086,000 from August 1, 2023, to December 31, 2023, with a gross margin of about -19.3%[175]. Financing and Expenses - The company incurred financing expenses of HKD 8,556,000, an increase from HKD 6,701,000 in the previous year[35]. - The group reported a net cash outflow from financing activities of HKD (783,000), a decrease from a net cash inflow of HKD 46,401,000 in the previous year[36]. - The company’s provisions for trade receivables increased significantly, indicating a cautious approach to credit risk management[122]. - The company incurred employee expenses of HKD 25,262,000 for wages and salaries[81]. Future Plans and Investments - The group plans to enhance the production capacity of permanent magnetic materials and strengthen the research and development of new permanent magnetic motors in 2024, while also participating in rare earth product trading to improve overall economic benefits[19]. - The company plans to reduce its focus and investment in the biopharmaceutical sector, particularly in CAR-T cell therapy, due to the high difficulty and uncertainty in the research and development process[166]. - The company completed a series of optimizations in the rare earth segment, including upgrading production processes and equipment, which is expected to enhance economic benefits and expand production volume[197]. - The company engaged in international trade, focusing on products like electrolytic copper, and established a subsidiary in Laos to enhance its rare earth mining-related business[198]. Dividends and Shareholder Returns - The company did not declare a final dividend for the year ending December 31, 2023, consistent with the previous year[159]. - The company did not declare or propose any dividends for the year ending December 31, 2023, consistent with 2022[184].

Financial Performance - Net profit margin decreased by 3.3% to approximately -9.8% compared to the same period last year, primarily due to reduced revenue and increased general and administrative expenses[2] - Revenue for the six months ended June 30, 2023, was HKD 140,576 thousand, a decrease from HKD 203,321 thousand in the same period last year[9] - Gross profit for the six months ended June 30, 2023, was HKD 2,517 thousand, compared to a gross loss of HKD 15,474 thousand in the same period last year[9] - Operating loss for the six months ended June 30, 2023, was HKD 22,969 thousand, an improvement from HKD 28,064 thousand in the same period last year[9] - The company's total comprehensive loss for the six months ended June 30, 2023, was HKD 44,914 thousand, compared to HKD 52,483 thousand in the same period last year[9] - Revenue for the first half of 2023 was approximately HKD 140,576,000, a decrease of 30.9% compared to HKD 203,321,000 in the same period last year[71] - The company's net profit margin for the period was approximately -13.1%[126] - The company reported a loss of HKD 17,433,000 for the six months ended June 30, 2023, compared to a loss of HKD 18,661,000 for the same period in 2022[163] - Total comprehensive loss for the six months ended June 30, 2023, was HKD 44,257,000[163] - Revenue from the cement production and sales segment was HKD 140.576 million, a decrease from HKD 203.321 million in the same period last year[199] - The cement production and sales segment reported a loss of HKD 10.196 million, while the biotechnology R&D segment reported a loss of HKD 2.816 million[199] Assets and Liabilities - Total assets decreased to HKD 569,066 thousand as of June 30, 2023, from HKD 616,378 thousand as of December 31, 2022[23] - Total liabilities decreased to HKD 386,830 thousand as of June 30, 2023, from HKD 418,265 thousand as of December 31, 2022[22] - The company's equity attributable to owners decreased to HKD 542,956 thousand as of June 30, 2023, from HKD 587,213 thousand as of December 31, 2022[23] - The company's capital-to-debt ratio as of June 30, 2023, was 78.6%[108] - The company's capital-to-debt ratio was 78.6% as of June 30, 2023, slightly higher than 78.3% at the end of 2022, while the asset-to-liability ratio was 44.0%, up from 43.9%[136] - Total assets as of June 30, 2023, were HKD 955.896 million, down from HKD 1.034 billion at the end of the previous year[199] - Trade receivables and bills receivable decreased to HKD 31.183 million from HKD 43.209 million at the end of the previous year[193] - Depreciation for property, plant, and equipment was HKD 13.150 million, with a carrying amount of HKD 175.821 million as of June 30, 2023[194] Revenue Breakdown by Region - Jiangsu Province accounted for 87.47% of total revenue, generating 122,809 thousand HKD[39] - Wujiang District contributed 75.74% of total revenue, with 106,343 thousand HKD[39] - Suzhou City (excluding Wujiang District) accounted for 11.73% of total revenue, generating 16,466 thousand HKD[39] - Zhejiang Province contributed 11.54% of total revenue, with 16,213 thousand HKD[39] - Southern Zhejiang (including Taizhou, Zhoushan, and Ningbo) accounted for 1.06% of total revenue, generating 1,492 thousand HKD[39] - Jiaxing City contributed 10.48% of total revenue, with 14,721 thousand HKD[39] - Shanghai accounted for 0.99% of total revenue, generating 1,387 thousand HKD[39] - Total revenue for the period was 140,409 thousand HKD[39] Cement Market and Sales - Cement product sales volume decreased by 7% YoY to approximately 444 thousand tons, with sales revenue down by 31% YoY[38] - PO 42.5 cement sales volume decreased to 326,000 tons from 383,000 tons, with average selling price dropping to HKD 324/ton from HKD 433.19/ton[72] - PC 32.5 cement sales volume increased to 118,000 tons from 95,000 tons, but average selling price decreased to HKD 294/ton from HKD 392.10/ton[72] - National cement production in the first half of 2023 was 953 million tons, a 1.3% year-on-year increase, but the lowest in 12 years[70] - Cement prices in key regions (Nanjing, Hangzhou, Shanghai) dropped significantly, with PO42.5 cement prices falling by 23.6%, 27.7%, and 10% respectively[70] - Cement demand remained sluggish due to a downturn in the real estate market, with insufficient new construction projects and funding shortages in the real estate sector[37] - The cement segment's gross profit was approximately HKD 2.517 million, a significant improvement from a gross loss of HKD 15.474 million in the same period last year, representing an increase of HKD 17.991 million or 116.3%. The gross margin improved to 1.8% from -7.6% last year, primarily due to lower raw material costs, especially coal prices[123] Expenses and Costs - Distribution expenses decreased by 39.9% to HKD 1.144 million from HKD 1.905 million last year, primarily due to reduced cement deliveries. Distribution expenses accounted for 1% of the company's consolidated revenue, consistent with the previous year[124] - General and administrative expenses increased by 88.1% to HKD 24.927 million from HKD 13.255 million last year, mainly due to increased consulting fees related to the acquisition of Ganzhou Chengzheng Rare Earth Technology Co., Ltd[135] - Cost of goods sold for the six months ended June 30, 2023, was HKD 137,788,000, down from HKD 218,143,000 in the same period in 2022[174] - Depreciation of property, plant, and equipment for the six months ended June 30, 2023, was HKD 12,451,000[174] - Employee expenses, including director remuneration, totaled HKD 9,122,000 for the six months ended June 30, 2023[174] - The company's minimum lease payments as of June 30, 2023, were HKD 1,314,000, with a present value of HKD 1,273,000[169] Cash Flow and Liquidity - Cash and cash equivalents decreased by 27% to HKD 5.63 million as of June 30, 2023, from HKD 7.662 million at the end of 2022, primarily due to increased administrative expenses[136] - The company maintains sufficient cash and credit facilities to meet its liquidity requirements[165] - Operating cash flow from activities was negative at HKD 16.117 million, compared to a positive HKD 103.857 million in the same period last year[178] - Investment activities generated a net cash inflow of HKD 25.616 million, a significant improvement from a net cash outflow of HKD 60.423 million in the previous year[178] - Financing activities resulted in a net cash outflow of HKD 11.357 million, compared to a net cash outflow of HKD 3.220 million in the prior year[178] - The company's cash and cash equivalents decreased by HKD 1.858 million, ending the period at HKD 5.630 million, down from HKD 125.563 million at the end of the previous period[178] Investments and Acquisitions - The company acquired 25% equity in a target company for RMB 40 million and injected RMB 160 million, increasing its total stake to 62.5%[75] - The target company specializes in rare earth exploration, rare earth permanent magnet materials, and rare earth permanent magnet motors[75] - The company acquired 25% equity of the target company for RMB 40 million (approximately HKD 44.01 million) and injected RMB 160 million (approximately HKD 176 million) into the target company, increasing its registered capital by RMB 56 million (approximately HKD 61.62 million) and capital reserve by RMB 104 million (approximately HKD 114 million). Post-injection, the company holds 62.5% equity in the target company[120] - The company holds a 43.2% stake in Suzhou Dongtong Environmental Technology Co., Ltd., with an investment cost of HKD 27,637,000[161] Other Financial Information - Bank borrowings decreased by 15.0% to HKD 85,320,000 as of June 30, 2023, compared to HKD 100,317,000 as of December 31, 2022, mainly due to loan repayments during the reporting period[3] - The company's capital expenditure for the first half of 2023 was approximately HKD 2.532 million, all generated by the cement segment, a significant decrease compared to HKD 10.618 million in the same period last year[116] - The company's capital commitment as of June 30, 2023, was approximately HKD 646,000, down from HKD 1.154 million as of December 31, 2022[116] - The company had 213 employees as of June 30, 2023, with total employee compensation amounting to approximately HKD 12.617 million during the reporting period[109] - The company did not have any unused bank financing facilities as of June 30, 2023[96] - The company did not have any significant contingent liabilities as of June 30, 2023[118] - The company did not mortgage any assets during the reporting period[117] - The company plans to meet its working capital needs primarily through cash flow generated from operating activities, bank loans, trade and other payables, and proceeds from its initial public offering[98] - The company did not experience significant foreign exchange risks during the reporting period and did not implement any hedging measures[119] - The company's major shareholder, Goldview, held a 53.89% stake in the company as of June 30, 2023[113] - Other income for the period was approximately HKD 585,000, a decrease of HKD 1.985 million or 77.2% compared to HKD 2.57 million last year, mainly due to reduced government subsidies[124] - The company's income tax credit for the period was approximately HKD 224,000, a significant decrease from HKD 2.558 million last year, mainly due to pre-tax losses incurred during the period[147] - The company's total bank and other borrowings amounted to HKD 163.206 million as of June 30, 2023, a decrease from HKD 178.439 million at the end of 2022[145] - Prepayments and deposits for raw materials, machinery, and property licenses amounted to HKD 6,934,000, HKD 469,000, and HKD 24,300,000 respectively as of June 30, 2023[157] - Exchange rate differences resulted in a loss of HKD 26,824,000 for the six months ended June 30, 2023[163] Strategic Plans and Future Outlook - The company plans to enhance internal management, upgrade facilities, and explore opportunities in the new energy sector[75] - The biopharmaceutical segment's R&D progress slowed due to the pandemic, with ongoing clinical studies for CAR-T cell therapy and early-stage development of ADC drugs[73] - No interim dividend was recommended for the six months ended June 30, 2023[88] Customer and Market Concentration - The single largest external independent customer accounted for 19.93% of the company's revenue, up from 15.92% in the previous year[191]

Financial Performance - The group's revenue for the six months ended June 30, 2023, was approximately HKD 140,576,000, a decrease of about HKD 62,745,000 or 30.9% compared to HKD 203,321,000 for the same period in 2022[26] - The group reported a net loss attributable to shareholders of approximately HKD 18,418,000, a decrease from a loss of approximately HKD 19,944,000 for the six months ended June 30, 2022[26] - Revenue for the six months ended June 30, 2023, was HKD 140,576 thousand, a decrease of 30.8% compared to HKD 203,321 thousand for the same period in 2022[27] - The net loss for the period was HKD 18,418 thousand, slightly improved from HKD 19,944 thousand in the prior year[29] - Total comprehensive loss for the period was HKD 44,914 thousand, compared to HKD 52,483 thousand in the previous year, reflecting a decrease of 14.5%[27] - The net profit margin for the group during the reporting period was approximately -13.1%[14] - The basic loss per share for the period was HKD 0.032, compared to HKD 0.034 in the same period of the previous year[29] Segment Performance - The gross profit margin for the cement segment improved from approximately -7.6% for the six months ended June 30, 2022, to about 1.8% in the current reporting period[26] - The group's gross profit for the cement segment was approximately HKD 2,517,000, an increase of about HKD 17,991,000 or 116.3% compared to a gross loss of HKD 15,474,000 in the previous year[8] - The segment loss for cement production and sales was HKD 10,196,000, while the biotechnology research and development segment reported a loss of HKD 2,816,000, resulting in a total segment loss of HKD 13,012,000[60] Cash Flow and Assets - The net cash flow from operating activities for the six months ended June 30, 2023, was a loss of HKD 16,117,000, compared to a gain of HKD 103,857,000 for the same period in 2022[37] - Current assets totaled HKD 581,656 thousand, a decrease from HKD 630,364 thousand at the end of 2022[31] - Total assets as of June 30, 2023, amounted to HKD 955,896,000, down from HKD 1,034,643,000 as of December 31, 2022[62] - The company reported a decrease in trade and other receivables, contributing to the cash flow from operating activities[37] Liabilities and Equity - Total liabilities decreased to HKD 386,830 thousand from HKD 418,265 thousand at the end of 2022, indicating improved financial stability[31] - The company's equity attributable to owners was HKD 542,956 thousand as of June 30, 2023, down from HKD 587,213 thousand at the end of 2022[33] - Total financial liabilities decreased to HKD 361,574,000 as of June 30, 2023, from HKD 402,307,000 as of December 31, 2022[128] Investments and Acquisitions - The group completed the acquisition of a 62.5% stake in Ganzhou Chengzheng Rare Earth New Materials Co., Ltd. for a cash consideration of RMB 200,000,000 on July 31, 2023, aiming to diversify its business and enhance shareholder value[4] - The company acquired a 25% stake in Jiangxi Xingyao for RMB 40 million (approximately HKD 44.01 million) and injected RMB 160 million (approximately HKD 176 million) into the target company[165] - Following the acquisition, the company will hold 62.5% of the target company, and its financial performance will be consolidated into the company's financial statements[165] Operational Highlights - Cement product sales volume was approximately 444,000 tons, a year-on-year decrease of about 7%, with sales revenue declining by approximately 31%[141] - The average cement prices in major sales regions showed significant declines, with prices in Nanjing, Hangzhou, and Shanghai dropping by 23.6%, 27.7%, and 10% respectively compared to the same period last year[18] - The company aims to maintain sufficient cash and credit lines to meet its working capital requirements[54] Employee and Management - The company has a total of 213 employees, with total employee compensation amounting to approximately HKD 12.62 million during the reporting period[164] - The company plans to enhance internal management and reduce costs while upgrading existing facilities to increase production efficiency and reduce maintenance costs in the second half of 2023[165] General and Administrative Expenses - General and administrative expenses for the reporting period were approximately HKD 24,927,000, an increase of about HKD 11,672,000 or 88.1% compared to HKD 13,255,000 in the same period last year[144] - The net profit margin decreased by 3.3% to approximately -9.8% compared to the same period last year, primarily due to the decrease in revenue and the increase in general and administrative expenses[146] Other Financial Information - The company has not adopted any new accounting standards or amendments that have a significant impact on its financial performance during the current accounting period[48] - The financial data is prepared in accordance with Hong Kong Accounting Standards and reflects the same accounting policies as the previous year[41] - No dividends were declared or proposed for the six months ended June 30, 2023, consistent with 2022[117]

Financial Performance - In 2022, cement product sales volume was approximately 982,000 tons, a decrease of about 21.3% compared to 2021, with sales revenue of approximately HKD 371,737,000, down about 36.8%[1]. - Revenue from cement kiln leasing in 2022 was approximately HKD 601,000, a decline of about HKD 307,000 or 34% from approximately HKD 908,000 in 2021[2]. - Gross profit for the reporting period was approximately HKD 3,377,000, a decrease of about HKD 107,854,000 or approximately 96.96% from HKD 111,231,000 in 2021, with a gross margin of approximately 0.9%, down from 18.9% in 2021[6]. - The net profit margin for the reporting period was approximately -11.6%, a significant decline from 7.5% in 2021, primarily due to decreased domestic cement demand and increased costs[11]. - The company's revenue from the cement segment for the reporting period was approximately HKD 372,338,000, a decrease of about HKD 217,123,000 or 36.8% compared to HKD 589,461,000 in the same period of 2021 due to the impact of the pandemic and a sluggish cement market[135]. - The company reported a significant decline in cement product sales revenue, amounting to approximately HKD 371,737,000, down from HKD 588,553,000, reflecting a drop of about HKD 216,816,000 or 36.8%[135]. Expenses and Costs - Sales and distribution expenses for the group were approximately HKD 3,077,000, a decrease of about HKD 2,763,000 or approximately 47.3% from HKD 5,840,000 in 2021[24]. - General and administrative expenses increased to approximately HKD 59,461,000, up about HKD 14,664,000 or approximately 32.7% from HKD 44,797,000 in 2021, mainly due to rising costs from the pandemic[25]. - The total employee compensation during the reporting period was approximately HKD 28,477,000, with a total of 218 employees as of December 31, 2022[51]. Cash Flow and Capital Structure - As of December 31, 2022, cash and cash equivalents were approximately HKD 7,662,000, a decrease of about 91.5% from HKD 90,292,000 on December 31, 2021[33]. - The debt-to-capital ratio increased to 78.3% in 2022 from 63.4% in 2021, while the asset-to-liability ratio rose to 43.9% from 38.8%[32]. - As of December 31, 2022, the group's bank borrowings amounted to approximately HKD 100,317,000, a decrease of about 17.3% from HKD 121,355,000 as of December 31, 2021, primarily due to loan repayments during the reporting period[34]. - The capital expenditure for the group in 2022 was approximately HKD 18,907,000, significantly reduced from HKD 32,382,000 in 2021, mainly due to a decrease in technical renovation costs[41]. - The company's total issued share capital as of December 31, 2022, was HKD 5,520,000, divided into 552,000,000 shares with a par value of HKD 0.01 per share[110]. - The distributable reserves available to shareholders as of December 31, 2022, were approximately HKD 175,691,000, down from HKD 216,159,000 as of December 31, 2021, representing a decrease of about 18.7%[110]. Strategic Initiatives and Future Outlook - The company plans to enhance internal management and reduce costs in 2023, while also upgrading existing facilities to increase production efficiency[52]. - The company is focused on expanding its market presence and enhancing its operational efficiency through strategic management and investment initiatives[71]. - The company is actively pursuing new strategies for market expansion and product development to meet evolving customer needs[71]. - The group has established an ESG working group to regularly review ESG-related strategies, management systems, and implementation status[99]. - The group aims to identify, assess, and monitor key ESG risks and opportunities that significantly impact its business, reporting to the board and providing important references for annual ESG goals[100]. Leadership and Governance - Liu Dong has over 10 years of experience in the Hong Kong capital market and investor relations, having served in various executive roles since 2016[68]. - Wu Junxian has been with the group since 2009 and has held multiple management positions, currently serving as CEO and General Manager of Suzhou Dongwu[69]. - The company has a strong leadership team with extensive experience in finance, management, and investment, including independent directors with backgrounds in banking and asset management[77][78][79]. - The board of directors includes members with significant experience in international business and investment, contributing to the company's strategic direction[70][74]. - The company has maintained a high standard of corporate governance, adopting the corporate governance code as its own[157]. - The board held a total of four ad-hoc meetings during the reporting period to discuss significant matters, including voluntary announcements and profit warnings[158]. Risk Management and Compliance - The company has implemented policies to manage environmental and social risks within its supply chain, although specific metrics were not disclosed[124]. - The company has maintained compliance with all relevant laws and regulations during the reporting period, ensuring a good working relationship with regulatory authorities[105]. - The company has no significant contingent liabilities or legal claims as of December 31, 2022[114]. - The group did not engage in any significant acquisitions or disposals of subsidiaries or associates during the reporting period[49]. Market Conditions - The average price of cement in the East China region for 2022 was RMB 473 per ton, a decrease of 10% compared to 2021, while the highest average price was in North China at RMB 503 per ton[135]. - The average price in the Southwest region was the lowest at RMB 406 per ton, with a year-on-year decrease of 3.6%[135]. - The company experienced multiple production stoppages due to stringent pandemic control measures, alongside ongoing pressures from the real estate market and rising raw material costs[135]. Research and Development - The R&D progress in the biopharmaceutical segment was slowed down due to the pandemic, with ongoing projects including CAR-T cells, antibody-drug conjugates (ADC), and oncolytic viruses[136]. - The ROR1 CAR-T cell drug is undergoing clinical research at Huazhong University of Science and Technology, focusing on its safety and preliminary efficacy for treating ROR1-positive advanced ovarian cancer[136].