Financial Performance - For the year ended December 31, 2021, the Group recorded total revenue of HK$5,186 million, an increase of 67.3% year-on-year[7]. - Profit for the year was HK$1,288 million, an increase of 156.2% year-on-year[7]. - The Group's gross profit margin rose by 8.6 percentage points year-on-year to 45.1%, while the net profit margin also climbed by 8.6 percentage points year-on-year to 24.8%[7]. - For the year ended December 31, 2021, the Group's revenue was HK$5,186 million, representing a 67.3% increase from HK$3,100 million in the previous year, while net profit attributable to equity holders was HK$1,288 million, up 156.2% from HK$503 million[19]. - Revenue from chemical operations was approximately HK$4,991 million, an increase of HK$1,892 million or 61.0% compared to the previous year, driven by higher unit selling prices due to strong demand[22]. Revenue Sources - Revenue from the sale of properties was approximately HK$195 million during the year, with 155 residential units delivered from the RIVERDALE project in Changshu, Jiangsu[8]. - The average selling price per ton of caustic soda increased by 30% to approximately RMB820, while methylene chloride and chloroform saw increases of 67% and 90%, reaching RMB4,500 and RMB4,000 respectively[23]. Production and Capacity - The second phase of fluoropolymer production was launched in Q4 2021, significantly increasing production capacity for specialty polymers like polytetrafluoroethylene (PTFE)[10]. - The actual production volume included approximately 360,000 tons for CMS products, 570,000 tons for caustic soda, 12,000 tons for polytetrafluoroethylene, and 390,000 tons for hydrogen peroxide[24]. - The Group's factory in Zhuhai commenced operations in mid-2021, contributing to revenue from lithium battery-related products[25]. Research and Development - Research and development costs amounted to approximately HK$231 million, representing 4.5% of total revenue, focusing on new product development and optimization of technical processes[32]. - The Group aims to enhance investment in high-end fluoropolymers and lithium battery new materials to increase market share and industry recognition[16]. Financial Health - Total shareholders' equity as of December 31, 2021, was HK$5,575 million, an increase from HK$4,444 million in 2020[39]. - Current assets amounted to HK$2,146 million as of December 31, 2021, compared to HK$1,780 million in 2020[39]. - The current ratio improved to 1.60 as of December 31, 2021, from 1.52 at the end of 2020[39]. - The net debt to equity ratio decreased to 12.70% as of December 31, 2021, from 24.97% in 2020[39]. Corporate Governance - The Board of Directors consists of 4 executive directors and 3 independent non-executive directors, with independent directors representing over one-third of the Board[63]. - The Company has adopted high standards of corporate governance, complying with the corporate governance code as per the Listing Rules[61]. - The Audit Committee held 3 meetings during the year, with full attendance from all members[80]. - The Company ensures that no Director is involved in deciding their own remuneration[81]. Risk Management - The Group has established a risk management framework involving the Board of Directors, the Audit Committee, and the Risk Management Taskforce to monitor and manage risks effectively[109]. - The risk management and internal control systems are designed to provide reasonable assurance against material misstatement or loss, rather than absolute assurance[113]. Environmental, Social, and Governance (ESG) - The company has established clear pollutant discharge standards and has not found any violations of environmental protection laws during the year[134]. - The Group has established an ESG governance framework focusing on occupational health and safety, waste gas and wastewater emissions, and production waste management[146]. - The company manufactured and donated disinfectants and other anti-epidemic materials to support communities during the COVID-19 pandemic[136]. Employee Management - The Group has a dynamic system for managing hazardous chemicals, including emergency response plans[165]. - In 2021, the Group arranged for 2,116 employees to receive vocational training, an increase from 1,889 in 2020[175]. - The Group provides comprehensive employee benefits including endowment insurance, medical insurance, and free meals[187].

Financial Performance - Revenue for the six months ended June 30, 2021, was HK$2,271,500,000, an increase from HK$1,381,714,000 in the same period last year, representing a growth of 64.4%[6] - Gross profit for the same period was HK$1,018,084,000, compared to HK$443,400,000 in the previous year, indicating a significant increase of 129.1%[6] - Profit for the period reached HK$587,028,000, up from HK$156,213,000, marking an increase of 274.5%[6] - Basic earnings per share were 71.2 HK cents, compared to 18.9 HK cents in the prior year, reflecting an increase of 276.7%[6] - Total comprehensive income for the period was HK$690,477,000, compared to HK$97,734,000 in the previous year, an increase of 605.5%[6] Revenue Breakdown - Revenue from caustic soda was HK$568,112,000, up from HK$532,594,000, representing a growth of 6.8%[27] - Revenue from chloromethane products increased significantly to HK$594,627,000 from HK$318,856,000, marking an increase of 86.2%[27] - The Group's revenue from the manufacture and sale of chemical products was HK$2,110,983,000, compared to HK$1,381,714,000, reflecting a growth of 52.9%[27] - Revenue from property sales amounted to HK$160,517,000, with no revenue recorded in the same period of the previous year[27] Expenses and Costs - Selling and distribution costs were HK$114,444,000, compared to HK$91,172,000 in the previous year, an increase of 25.5%[6] - Research and development costs amounted to HK$23,000,000, compared to HK$31,863,000 in the previous year, a decrease of 27.6%[6] - Cost of inventories recognized as expenses was HK$1,253,416,000, an increase of 33.5% from HK$938,314,000 in 2020[46] - General and administrative expenses increased to approximately HK$136 million, up by approximately HK$38 million from HK$98 million in the same period last year[92] Assets and Liabilities - As of June 30, 2021, total assets less current liabilities amounted to HK$5,709,739,000, an increase from HK$5,604,635,000 as of December 31, 2020, reflecting a growth of approximately 1.87%[8] - Net current assets decreased to HK$417,638,000 from HK$606,211,000, indicating a decline of about 30.97%[9] - The company's bank borrowings decreased significantly from HK$1,073,493,000 to HK$633,029,000, a reduction of approximately 41.05%[9] - Total equity increased to HK$5,014,124,000 from HK$4,443,564,000, representing a growth of around 12.83%[9] Cash Flow - For the six months ended June 30, 2021, net cash from operating activities was HK$674,829,000, a significant increase from HK$232,767,000 in the same period of 2020, representing a growth of approximately 189%[15] - The net cash used in investing activities was HK$397,945,000, up from HK$230,580,000 in the prior year, reflecting a rise of approximately 72.7%[15] - Cash and cash equivalents at the end of the period were HK$408,840,000, down from HK$422,683,000 at the beginning of the period, reflecting a decrease of about 3.5%[15] Shareholder Information - The company paid dividends totaling HK$136,125,000, compared to HK$123,750,000 in the same period last year, marking an increase of approximately 10%[15] - The interim dividend declared is HK$26.0 cents per share, compared to HK$7.5 cents per share in 2020[51] Corporate Governance - The company has complied with the Corporate Governance Code throughout the six months ended June 30, 2021[118] - The Audit Committee reviewed the Group's results for the period ended June 30, 2021, discussing accounting principles and internal controls[119] - The Remuneration Committee has been established with independent non-executive directors overseeing its authority and duties[120] - The Nomination Committee consists of independent non-executive directors, ensuring governance in board member selection[121] Future Outlook - The board expressed optimism about future growth and market expansion strategies[6] - The Group remains cautiously optimistic about future business prospects as COVID-19 vaccination rates increase globally, leading to a gradual relaxation of pandemic-related restrictions[86] - The Group aims to promote green manufacturing and achieve "Grade-A Safe Production Standardization Enterprise Certification" for sustainable returns to shareholders[89]

理 文 化 工 有 限 公 司 Lee & Man Chemical Company Limited (Incorporated in the Cayman Islands and its members' liability is limited) （於 } } 受 群 島 注 冊 成 立 及 共 成 員 責 任 為 有 限 ) Stock Code 股份代號：746 Together We Grow ANNUAL olocex HCl CHCl3 NaOH REPORT NaClO HCl 年報 NaOH 104.45° 2020 | --- | --- | --- | |--------------------------------------------------------------------------|--------------------------|-------| | | | | | Content 目錄 | | | | | | | | | 公司資料 | | | CORPORATE INFORMATION CHAIRMAN'S STATEMENT | 主席報告 | 2 4 | | ...

理 文 化 工 有 限 公 司 Lee & Man Chemical Company Limited (Incorporated in the Cayman Islands and its members' liability is limited) （於 開 曼 群 岛 注 册 成 立 及 其 成 員 责 任 為 有 限 ） Stock Code 股份代號：746 Together We Grow INTERIM croco HCl CHCl3 NaOH REPORT NaClO HCP 中期報告 NaOH (04.45° 2020 | --- | --- | --- | --- | --- | |-------|----------------------------------------------------------------------------------------|-------|----------------------------------|-------| | | | | | | | | Content 目錄 | | | | | | CORPORATE INFORMATIO ...

理 文 化 工 有 限 公 司 Lee & Man Chemical Company Limited (Incorporated in the Cayman Islands and its members' liability is limited) （於 開 受 群 島 注 冊 成 立 及 英 成 員 責 任 為 有 限 ） Stock Code 股份代號：746 Together We Grow ANNUAL oroco HCl CHCl3 NaOH REPORT NaClO HCl 年報 ST TO FOR THE FOR NaOH 104.45° 2019 Content 目錄 | --- | --- | --- | |---------------------------------------------------|--------------------------|-------| | | | | | CORPORATE INFORMATION | 公司資料 | 2 | | CHAIRMAN'S STATEMENT | 主席報告 | 4 | | MANAGEMENT DISCUSSION A ...

LEE & MAN CHEMICAL COMPANY LIMITED 理文化工有限公司 Stock Code 股份代號：746 Together We Grow INTERIM cross HCL CHCl3 NaOH REPORT NaClO HCL 中期報告 A CONTRALIE IN NaOH 104.45° 2019 (Incorporated in the Cayman Islands and its members' liability is limited) (於開曼群島註冊成立及其成員責任為有限) Content 目錄 | --- | --- | --- | --- | |-------|---------------------------------------------------------------------------------------|------------------------------------|-------| | | | | | | | CORPORATE INFORMATION | 公司資料 | 2 | | | INTERIM RESULTS | ...

LEE & MAN CHEMICAL COMPANY LIMITED 理文化工有限公司 Stock Code 股份代號：746 Together We Grow ANNUAL crosb HCL CHCl3 NaOH REPORT NaClO HCL 年報 NaOH 104.45° 2018 (Incorporated in the Cayman Islands with Iimited liability) (於開曼群島註冊成立之有限公司) Content 目錄 | --- | --- | --- | |--------------------------------------------------------------------------|--------------------------|-------| | | | | | CORPORATE INFORMATION | 公司資料 | 2 | | CHAIRMAN'S STATEMENT | 主席報告 | 4 | | MANAGEMENT DISCUSSION AND ANALYSIS | 管理層討論及分析 | 6 | | CORPORAT ...