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佈之內容概不負責，對其準確性 或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部份內容而產生或因倚賴 該等內容而引致之任何損失承擔任何責任。 玖 源 化 工（ 集 團 ）有 限 公 司 Ko Yo Chemical (Group) Limited （於開曼群島註冊成立之有限公司） （股份代號：00827） 有關截至二零二四年十二月三十一日止年度年報 持續經營和緩解措施之更新資料 本公佈乃由玖源化工（集團）有限公司（「本公司」，連同其附屬公司統稱「本集 團」）根據香港聯合交易所有限公司證券上市規則（「上市規則」）第13.09條及證 券及期貨條例（香港法例第571章）第XIVA部之內幕消息條文（定義見上市規則）而 作出。 茲提述本公司截至二零二四年十二月三十一日止年度之年報（「年報」）。除本公佈 另有界定者外，本公佈所用詞彙與年報所使用者具有相同涵義。 關於持續經營和緩解措施之更新資料 有關年報中二零二四年十二月三十一日止年度之綜合財務報表附註2及企業管治 常規中「持續經營和緩解措施」一節所披露及二零二五年六月三十日之公告的更新資 料如下： 1 內 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 玖源化工(集團)有限公司 呈交日期: 2025年9月30日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00827 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 20,000,000,000 | HKD | | 0.1 | HKD | | 2,000,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 20,000,000,000 | HKD | | 0.1 | HKD | | 2,000,000,000 | 本 ...

同日起，执行董事范超已获委任取代史建敏担任行政总裁及授权代表的职务。 玖源集团(00827)公布，史建敏为投入更多时间于彼之私人事务，已辞任执行董事及集团行政总裁职 务，亦不再担任公司授权代表，自2025年9月19日起生效。 ...

格隆汇9月19日丨玖源集团(00827.HK)宣布，史建敏为投入更多时间于彼之私人事务，已辞任执行董事 及集团行政总裁职务，并且彼亦不再担任根据香港联合交易所有限公司证券上市规则第3.05条项下要求 之公司授权代表，自2025年9月19日起生效。 史建敏辞任后，董事会宣布执行董事范超已获委任取代史建敏担任行政总裁及授权代表之职务，自2025 年9月19日起生效。 ...

智通财经APP讯，玖源集团(00827)公布，史建敏为投入更多时间于彼之私人事务 ，已辞任执行董事及 集团行政总裁职务，亦不再担任公司授权代表，自2025年9月19日起生效。 同日起，执行董事范超已获委任取代史建敏担任行政总裁及授权代表的职务。 ...

Ko Yo Chemical (Group) Limited 玖 源 化 工（ 集 團 ）有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：00827） 董事名單與其角色和職能 C 有關董事委員會的主席 M 有關董事委員會的成員 香港，二零二五年九月十九日 湯國強先生 （主席） 范超先生 （行政總裁） 張偉華先生 獨立非執行董事 徐從才先生 樂宜仁先生 魯藝女士 本公司已設立三個董事委員會，並制定有關職權範圍。下表提供各董事會成員於各董事委員會 所擔任的職務。 | | 董事委員會 | 審核委員會 | 薪酬委員會 | 提名委員會 | | --- | --- | --- | --- | --- | | 董事 | | | | | | 湯國強先生 | | – | – | – | | 范超先生 | | – | – | – | | 張偉華先生 | | – | – | – | | 徐從才先生 | | M | M | C | | 樂宜仁先生 | | C | M | M | | 魯藝女士 | | M | C | M | 附註： 玖源化工（集團）有限公司（「本公司」）之董事會（「董事會」）成員載列如下： 執行董事 ...

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佈之內容 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 概不會 就 本公佈全部或任何部分內容而產生或因倚賴該等內容而引致之任何損失 承擔任何責任。 Ko Yo Chemical (Group) Limited 玖 源 化 工（集 團）有 限 公 司 （ 於開曼群島註冊成立的有限公司） （ 股份代號： 00827 ） 執行董事辭任 及 行政總裁及授權代表變更 玖源化工（集團）有限公司（「本公司」，連同其附屬公司統稱「本集團」）之董 事（「董事」）會（「董事會」）宣佈史建敏先生 （「史先生」）為投入更多時間 於彼之 私人事務 ，已辭任執行董事及本集團行政總裁職務 （「行政總裁 」）， 並且彼亦不再擔任根據香港聯合交易所有限公司 （「聯交所 」）證券上市規 則 （「上市規則 」）第 3.05 條項下要求之本公司 授權代表 （「授權代表 」）， 自 二零二五年九月十九日起生效。 – 2 – 董事會謹藉此機會，對史先生於任期內為本公司作出的卓越貢獻，表示衷心 感謝和讚賞，並對范先生之新委任表示熱烈歡迎。 史 先生已確認其與董事會之間並無意見分歧 ...

[Summary](index=2&type=section&id=Summary) The Group reported a significant increase in loss attributable to equity holders and a decrease in revenue for the six months ended June 30, 2025, alongside a reduction in net operating cash flow - For the six months ended June 30, 2025, the Group's **loss attributable to equity holders** was approximately **RMB 185.8 million**, an increase in loss of approximately **RMB 56.1 million** compared to the same period last year[4](index=4&type=chunk) - For the six months ended June 30, 2025, the Group's unaudited **net cash outflow from operating activities** before changes in working capital and payment of income tax and interest was approximately **RMB 32.8 million**, a decrease of approximately **RMB 95.7 million** compared to a net cash inflow of approximately **RMB 62.9 million** in the same period last year[4](index=4&type=chunk) - For the six months ended June 30, 2025, the Group's unaudited **revenue** was approximately **RMB 1,100 million**, a decrease of approximately **14.1%** compared to the same period last year, primarily due to lower product selling prices[4](index=4&type=chunk) - For the six months ended June 30, 2025, the Group's unaudited **basic loss per share** was approximately **RMB 3.08 cents**[4](index=4&type=chunk) - The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025[5](index=5&type=chunk) [Interim Results](index=3&type=section&id=Interim%20Results) This section presents the unaudited condensed consolidated financial statements, including the income statement, balance sheet, cash flow statement, and statement of changes in equity, for the interim period [Condensed Consolidated Income Statement](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Income%20Statement) For the six months ended June 30, 2025, the Group recorded a significant loss, primarily due to a 14.1% decrease in revenue and a negative gross profit, leading to a 43.8% increase in loss for the period year-on-year | Metric | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Revenue | 1,099,955 | 1,279,855 | (179,900) | | Cost of sales | (1,131,957) | (1,200,229) | 68,272 | | Gross profit | (32,002) | 79,626 | (111,628) | | Operating profit | (112,267) | (5,462) | (106,805) | | Finance costs | (102,629) | (110,385) | 7,756 | | Loss before tax | (214,896) | (115,847) | (99,049) | | Loss for the period | (194,281) | (135,073) | (59,208) | | Loss attributable to equity holders of the Company | (185,789) | (129,665) | (56,124) | | Basic loss per share (RMB cents) | (3.08) | (2.15) | (0.93) | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total assets decreased by 10.3%, mainly due to a 57.4% drop in current assets, particularly pledged bank deposits, while total equity declined by 54.0% reflecting the period's losses | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current assets | 4,424,935 | 4,401,085 | 23,850 | | Current assets | 431,482 | 1,012,722 | (581,240) | | Total assets | 4,856,417 | 5,413,807 | (557,390) | | **Equity** | | | | | Equity attributable to owners of the Company | 217,430 | 403,219 | (185,789) | | Total equity | 165,304 | 359,585 | (194,281) | | **Liabilities** | | | | | Non-current liabilities | 994,207 | 788,143 | 206,064 | | Current liabilities | 3,696,906 | 4,266,079 | (569,173) | | Total liabilities | 4,691,113 | 5,054,222 | (363,109) | | Net current liabilities | (3,265,424) | (3,253,357) | (12,067) | [Condensed Consolidated Cash Flow Statement](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Cash%20Flow%20Statement) For the six months ended June 30, 2025, net cash generated from operating activities significantly increased, but net cash used in investing activities also rose sharply due to increased fixed asset purchases, resulting in a net increase in cash and cash equivalents | Metric | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Net cash generated from operating activities | 199,535 | 113,343 | 86,192 | | Net cash used in investing activities | (86,871) | (8,299) | (78,572) | | Net cash used in financing activities | (69,487) | (79,383) | 9,896 | | Increase/(Decrease) in cash and cash equivalents | 20,937 | (10,174) | 31,111 | | Cash and cash equivalents at end of period | 29,036 | 52,754 | (23,718) | - Payments for the purchase of property, plant and equipment and construction in progress significantly increased from **RMB 15,702 thousand** in 2024 to **RMB 92,256 thousand** in 2025, leading to a substantial increase in cash outflow from investing activities[10](index=10&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) As of June 30, 2025, the Group's total equity significantly decreased from RMB 359,585 thousand at the beginning of the year to RMB 165,304 thousand, primarily due to the net loss for the period | Metric | As of June 30, 2025 (RMB thousands) | As of January 1, 2025 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Share capital | 520,569 | 520,569 | 0 | | Reserves | (303,139) | (117,350) | (185,789) | | Equity attributable to owners of the Company | 217,430 | 403,219 | (185,789) | | Non-controlling interests | (52,126) | (43,634) | (8,492) | | Total equity | 165,304 | 359,585 | (194,281) | - The **net loss for the period** was **RMB 194,281 thousand**, of which **RMB 185,789 thousand** was attributable to equity holders of the Company[12](index=12&type=chunk) [Notes to the Financial Statements](index=8&type=section&id=Notes%20to%20the%20Financial%20Statements) This section details the basis of preparation, significant accounting policies, and specific financial disclosures for revenue, taxation, earnings per share, and various balance sheet items [Basis of Preparation](index=8&type=section&id=Basis%20of%20Preparation) The Group, an investment holding company, primarily engages in the production and sale of chemical products and fertilizers in Mainland China, with interim financial statements prepared in accordance with HKAS 34 and Appendix 16 of the Listing Rules - The Company is an investment holding company, and the Group primarily engages in the production and sale of chemical products and chemical fertilizers in Mainland China[13](index=13&type=chunk) - The unaudited interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[13](index=13&type=chunk) [Significant Accounting Policies](index=8&type=section&id=Significant%20Accounting%20Policies) The interim financial statements apply consistent accounting policies with the prior year, are prepared on a historical cost basis, and assume going concern, anticipating positive cash flows and successful bank loan restructuring despite net current liabilities - The significant accounting policies applied in the unaudited interim financial statements are consistent with those followed in the Group's financial statements for the year ended December 31, 2024[14](index=14&type=chunk) - As of June 30, 2025, the Group had **net current liabilities** of **RMB 3,696,906 thousand**[14](index=14&type=chunk) - The Directors have adopted the going concern basis, relying on the assumption that the Guang'an Plant and Dazhou Plant will generate positive cash flows and that the Group will successfully negotiate with banks to restructure outstanding bank loans[14](index=14&type=chunk) - The financial statements are unaudited but have been reviewed by the Company's Audit Committee[15](index=15&type=chunk) [Revenue](index=9&type=section&id=Revenue) Current period revenue was RMB 1,099,955 thousand, a 14.1% year-on-year decrease primarily due to lower product selling prices, with methanol sales increasing while urea, ammonia, NMP, and DMF sales declined - Revenue represents the net amounts received and receivable for chemical products and fertilizers sold during the six-month period, after deducting returns, discounts, and value-added tax (if applicable), with the Group's revenue primarily derived from the People's Republic of China[17](index=17&type=chunk) | Product | For the six months ended June 30, 2025 (RMB thousands) | Share (%) | For the six months ended June 30, 2024 (RMB thousands) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Urea | 305,929 | 27.8 | 355,449 | 27.8 | | Ammonia | 324,247 | 29.5 | 431,285 | 33.7 | | Methanol | 468,471 | 42.6 | 419,183 | 32.7 | | N-Methylpyrrolidone (NMP) | 222 | 0.0 | 2,149 | 0.2 | | N,N-Dimethylformamide (DMF) | 1,086 | 0.1 | 3,013 | 0.2 | | Others | – | – | 68,776 | 5.4 | | **Total** | **1,099,955** | **100** | **1,279,855** | **100** | [Reconciliation of Loss Before Tax to Cash Generated from Operations](index=10&type=section&id=Reconciliation%20of%20Loss%20Before%20Tax%20to%20Cash%20Generated%20from%20Operations) Despite an increased loss before tax, the Group's net cash generated from operating activities improved year-on-year, driven by a significant increase in trade and other payables and contract liabilities | Metric | For the six months ended June 30, 2025 (RMB thousands) | For the six months ended June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Loss before tax | (214,896) | (115,847) | | Operating cash flow before changes in working capital | (32,832) | 62,913 | | Cash generated from operations | 199,555 | 132,569 | | Net cash generated from operating activities after tax | 199,535 | 113,343 | - The increase in **trade and other payables** by **RMB 154,371 thousand** and **contract liabilities** by **RMB 44,381 thousand** positively impacted cash flow from operating activities[19](index=19&type=chunk) [Taxation](index=11&type=section&id=Taxation) The Group's Mainland China subsidiaries are subject to a 25% income tax rate, but no profit tax provision was made for Cayman Islands, BVI, or Hong Kong due to absence of taxable profits, with current period tax primarily reflecting deferred income tax credit - The Group has not made any provision for profit tax in the Cayman Islands, British Virgin Islands, or Hong Kong, as no assessable profits arose from or were derived from these jurisdictions for the six months ended June 30, 2025[21](index=21&type=chunk) - In 2025, the applicable income tax rate for all subsidiaries located in Mainland China was **25%**[22](index=22&type=chunk) | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | PRC Enterprise Income Tax | 20 | 26,258 | | Deferred income tax | (20,635) | (7,032) | | **Total** | **(20,615)** | **19,226** | [Earnings Per Share](index=12&type=section&id=Earnings%20Per%20Share) For the six months ended June 30, 2025, basic and diluted loss per share increased to RMB 3.08 cents, up from RMB 2.15 cents in the prior period, reflecting a higher net loss | Metric | For the six months ended June 30, 2025 | For the six months ended June 30, 2024 | | :--- | :--- | :--- | | Loss for the period (RMB thousands) | (185,789) | (129,665) | | Weighted average number of shares for basic earnings per share (thousands of shares) | 6,028,043 | 6,028,043 | | Basic loss per share (RMB cents) | (3.08) | (2.15) | | Diluted loss per share (RMB cents) | (3.08) | (2.15) | [Dividends](index=13&type=section&id=Dividends) The Board of Directors does not recommend the payment of any dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the payment of any dividend for the six months ended June 30, 2025[27](index=27&type=chunk) [Trade and Other Receivables](index=13&type=section&id=Trade%20and%20Other%20Receivables) As of June 30, 2025, total trade and other receivables decreased to RMB 156,008 thousand, mainly due to a reduction in prepayments and other receivables, with credit terms typically zero to three months and most trade receivables aged within three months | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 2,436 | 2,407 | | Prepayments, deposits for purchases and other deposits | 19,888 | 40,658 | | Bills receivable | 1,253 | 21 | | Other receivables | 132,431 | 151,693 | | **Total** | **156,008** | **194,779** | - The Group grants credit terms of **zero to three months**[30](index=30&type=chunk) - As of June 30, 2025, all trade receivables were aged less than **three months**[30](index=30&type=chunk) [Trade and Other Payables](index=15&type=section&id=Trade%20and%20Other%20Payables) As of June 30, 2025, total trade and other payables increased to RMB 830,231 thousand, primarily driven by a significant rise in accrued expenses and other payables, with most trade payables aged within one year | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade payables | 50,030 | 41,812 | | Payables for construction work | 230,667 | 218,132 | | Accrued expenses and other payables | 549,534 | 342,094 | | **Total** | **830,231** | **602,038** | - As of June 30, 2025, **RMB 41,646 thousand** of trade payables were aged less than **one year**, and **RMB 8,384 thousand** were aged over **one year but not exceeding two years**[32](index=32&type=chunk) [Borrowings](index=16&type=section&id=Borrowings) As of June 30, 2025, the Group's total borrowings decreased to RMB 2,165,310 thousand, with the majority (RMB 1,925,926 thousand) repayable within one year, typically secured by fixed assets and pledged cash deposits at annual interest rates ranging from 3.00% to 8.70% | Repayment Period | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Less than one year | 1,925,926 | 2,720,656 | | One to two years | 128,373 | 74,290 | | Two to five years | 111,011 | – | | Over five years | – | – | | **Total borrowings** | **2,165,310** | **2,794,946** | - Borrowings are generally secured by certain of the Group's **property, plant and equipment** and **pledged bank deposits**[33](index=33&type=chunk) - These borrowings bear interest at annual rates ranging from **3.00% to 8.70%** (2024: 3.45% to 8.64%)[33](index=33&type=chunk) [Deferred Income Tax](index=17&type=section&id=Deferred%20Income%20Tax) As of June 30, 2025, the Group's deferred income tax assets increased to RMB 36,834 thousand, primarily due to losses available for offset against future taxable profits, while deferred income tax liabilities remained unchanged | Metric | As of June 30, 2025 (RMB thousands) | As of December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Deferred income tax assets | 36,834 | 16,199 | | Deferred income tax liabilities | (114,033) | (114,033) | - The increase in **deferred income tax assets** was primarily due to **RMB 20,635 thousand** recognized in the income statement[36](index=36&type=chunk) [Management Discussion and Analysis](index=18&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an overview of the Group's financial performance, business operations, industry trends, and strategic initiatives for the reporting period [Financial Performance](index=18&type=section&id=Financial%20Performance) The Group's first-half revenue decreased by 14.1% to RMB 1,100 million, leading to a RMB 56.1 million increase in loss attributable to shareholders to RMB 185.8 million, with gross profit margin turning negative to -2.9% due to declining product market prices despite slight sales volume growth and controlled administrative expenses - For the six months ended June 30, 2025, the Group recorded **revenue** of approximately **RMB 1,100 million**, a decrease of approximately **14.1%** compared to the same period last year, primarily due to lower product selling prices[38](index=38&type=chunk) - The **loss attributable to equity holders** was approximately **RMB 185.8 million**, an increase of approximately **RMB 56.1 million** compared to the loss in the same period last year, mainly due to a decrease in gross profit margin[38](index=38&type=chunk) - The Group's **gross profit margin** decreased from approximately **6.2%** in the same period last year to **-2.9%**, primarily due to declining product market prices[38](index=38&type=chunk) - Total sales volume (excluding trading portion) reached approximately **546,000 tons**, a slight increase of approximately **1.3%** compared to the same period last year[38](index=38&type=chunk) - Cost of sales decreased by approximately **5.7%**, mainly due to technical improvements at the Guang'an Plant; administrative expenses decreased by approximately **13.8%** due to strict cost control[38](index=38&type=chunk) [Business Review](index=19&type=section&id=Business%20Review) In the first half, the Group actively operated under the principle of 'higher standards, better methods, stronger execution,' optimizing production, technology, and management to reduce costs and enhance risk resistance, achieving record-best results in cost control and plant operation despite overall performance being slightly below expectations due to low product selling prices, with new projects poised for future growth - The Group and its subsidiaries actively and steadily operated under the management objectives of 'higher standards, better methods, stronger execution,' continuously exploring energy-saving potential in production facilities and reducing production costs to improve the Company's operating efficiency[40](index=40&type=chunk) - Sales models continued to be adjusted, dynamically balancing bidding and contract signing ratios based on product performance in different markets to further enhance company profitability and optimize customer structure[40](index=40&type=chunk) - New projects successfully completed further optimization and improvements, poised for launch to extend the industrial chain and enhance the Company's overall strength[40](index=40&type=chunk) - In the first half of 2025, performance in safety, environmental protection, production volume, consumption, marketing, and cost control all improved once again compared to the historical best levels of 2024[41](index=41&type=chunk) - Product market conditions fluctuated downwards and remained at a low level; despite the severe external environment, the Group's internal efforts ensured stable overall operations, though business performance was slightly below expectations[41](index=41&type=chunk) [Guang'an Jiuyuan Plant](index=20&type=section&id=Guang%27an%20Jiuyuan%20Plant) The Guang'an Jiuyuan Plant resumed production on January 3, 2025, after major overhaul, achieving improved output and energy consumption through technical upgrades and cost control, yet its operating performance fell short of expectations due to low product selling prices - After successfully completing the major overhaul, the Guang'an Jiuyuan Plant's methanol-ammonia co-production unit resumed production on **January 3, 2025**[42](index=42&type=chunk) - Through equipment technical upgrades, cost control, and operational stability competitions, both **output** and **energy consumption** continued to improve beyond the historical best levels of 2024[42](index=42&type=chunk) - Despite achieving historical best results in cost control and plant operation, the operating performance did not meet expectations due to low finished product selling prices[42](index=42&type=chunk) [Dazhou Jiuyuan Plant](index=20&type=section&id=Dazhou%20Jiuyuan%20Plant) The Dazhou Jiuyuan Plant resumed synthetic ammonia and urea production in February after its annual overhaul, achieving good output and energy consumption levels through continuous optimization, but its operating performance also fell short of expectations due to low product selling prices - The Dazhou Jiuyuan Plant underwent its annual overhaul at the beginning of the year, resuming unit startup on **February 10**, with synthetic ammonia and urea units resuming production on **February 13**[43](index=43&type=chunk) - Through the annual overhaul, existing problems and hidden dangers in the units were effectively resolved; after resuming production, continuous optimization and adjustments led to good levels of **output** and **energy consumption**[43](index=43&type=chunk) - Despite achieving historical best results in cost control and plant operation, the operating performance did not meet expectations due to low finished product selling prices[43](index=43&type=chunk) [Guang'an Jiuyuan Electronic Materials Plant](index=21&type=section&id=Guang%27an%20Jiuyuan%20Electronic%20Materials%20Plant) The Guang'an Jiuyuan Electronic Materials Plant was idled in the first half of 2025 due to weak market demand but actively pursued technical upgrades, significantly improving DMF unit stability and NMP capacity while reducing production costs, with plans to resume production based on market conditions - The Guang'an Jiuyuan Electronic Materials Plant's units were idled in the first half of 2025 due to weak market demand[45](index=45&type=chunk) - Active optimization and capacity-increasing technical upgrades significantly improved the **stability of the DMF unit** and **capacity of the NMP unit**, effectively reducing production costs and enhancing product competitiveness[45](index=45&type=chunk) - Production will resume opportunistically based on product market conditions[45](index=45&type=chunk) [Jiangsu Blue Planet Plant](index=21&type=section&id=Jiangsu%20Blue%20Planet%20Plant) Jiangsu Blue Planet Environmental Technology Co., Ltd.'s 400,000 tons/year propylene oxide project is nearing completion of main construction, entering the commissioning and approval phase, with an estimated annual sales increase of approximately RMB 4 billion upon production - Jiangsu Blue Planet Environmental Technology Co., Ltd.'s **400,000 tons/year propylene oxide project** has largely completed its main construction and is entering the commissioning, testing, and approval stages[46](index=46&type=chunk) - Upon commencement of operations, this project is expected to generate approximately **RMB 4 billion** in additional annual sales[46](index=46&type=chunk) [Industry Review and Outlook](index=21&type=section&id=Industry%20Review%20and%20Outlook) In the first half of 2025, key chemical product markets (DMF, NMP, methanol, synthetic ammonia, urea) generally faced challenges of supply-demand imbalance, volatile or depressed prices, with the overall market environment remaining severe despite brief price rebounds for some products [Dimethylformamide (DMF)](index=21&type=section&id=Dimethylformamide%20%28DMF%29) The DMF market exhibited an 'M'-shaped trend in the first half, with overall prices lower than the prior year, seeing pre-holiday price increases due to reduced supply and demand stocking, followed by post-holiday declines due to increased supply and weak demand, and a brief mid-April surge before falling under pressure again - In the first half of 2025, domestic DMF total capacity was **1.8 million tons** (of which **300,000 tons** were long-term idled, effective capacity was **1.5 million tons**), with an industry operating rate of **48.5%** and supply of approximately **437,000 tons**[47](index=47&type=chunk) - In the first half of 2025, the domestic DMF market showed an 'M'-shaped trend; although prices rebounded during the period, the overall market remained below the level of the same period last year[47](index=47&type=chunk) - Prices steadily climbed before the Spring Festival driven by demand; after the holiday, due to previously high prices, weak downstream restocking interest, and increased DMF supply, prices gradually fell to a low point; prices rose to a half-year high in mid-April but subsequently fell under pressure again due to supply-demand imbalance[48](index=48&type=chunk) [N-Methylpyrrolidone (NMP)](index=23&type=section&id=N-Methylpyrrolidone%20%28NMP%29) The NMP market remained sluggish in the first half, with ample supply from synthetic and recycled capacities, but mature downstream recycling technology squeezed the synthetic market; however, BDO supply tightness and NMP recycled liquid shortages in June drove NMP prices significantly up to a half-year high of RMB 10,200 per ton - In the first half of 2025, the NMP market continued to struggle with a sluggish trend; synthetic liquid supply capacity was approximately **1.01 million tons**, with a capacity utilization rate of approximately **20%**, while recycled capacity approached **2.8 million tons**, indicating ample market supply[50](index=50&type=chunk) - Many large downstream manufacturers have built their own recycling production lines or are deeply tied to recycling plants, with recycling having taken a dominant position in the NMP market, further compressing the market space for synthetic liquid[50](index=50&type=chunk) - Before June, raw material BDO prices remained low; entering June, BDO production plant shutdowns led to a short-term supply decrease, and NMP prices followed the BDO price increase, reaching a half-year high of **RMB 10,200 per ton**[50](index=50&type=chunk) [Methanol](index=24&type=section&id=Methanol) In the first half, domestic methanol production and operating rates both increased, with market conditions initially rising then falling; demand-driven price increases in Q1 were followed by declines in Q2 due to macroeconomic factors and ample supply, and a brief June surge from Middle East conflict was reversed by falling crude oil prices - From January to June 2025, domestic methanol production was approximately **42.74 million tons**, an **8%** increase year-on-year, with the average operating rate of the domestic methanol industry at **81%**, a **4%** increase year-on-year[51](index=51&type=chunk) - In the first half of 2025, the methanol market was dominated by macroeconomic regulation and supply-demand structure, with market conditions initially rising then falling[51](index=51&type=chunk) - In June, the outbreak of the Middle East conflict led to a significant increase in crude oil prices, which in turn boosted domestic futures and spot markets, causing methanol market prices to surge; however, the upward trend lasted only about **10 days**, as the easing of the conflict and gradual decline in crude oil prices led to a fall in both futures and spot prices[51](index=51&type=chunk) [Synthetic Ammonia](index=24&type=section&id=Synthetic%20Ammonia) In the first half, domestic synthetic ammonia production increased by 4% while operating rates slightly decreased; market conditions saw an initial decline, then a rise, and then another fall, with prices under pressure in January, firm in February, rapidly increasing in March, but returning to weakness from April to June due to increased supply and weak downstream demand, continuously hitting new lows - In the first half of 2025, domestic synthetic ammonia production was approximately **30.98 million tons**, a **4%** increase year-on-year; the average industry operating rate was **79%**, a **1%** decrease year-on-year[52](index=52&type=chunk) - In 2025, the synthetic ammonia market showed a trend of initial decline, then rise, then decline again[54](index=54&type=chunk) - From April to June, the synthetic ammonia market returned to weakness; as previously idled maintenance units resumed production across various regions, market supply pressure continuously increased, and the downstream phosphate and compound fertilizer industry entered the off-season for spring and summer fertilizers, leading to declining operating rates, which caused market conditions to gradually fall and prices to continuously hit new lows[54](index=54&type=chunk) [Urea](index=25&type=section&id=Urea) In the first half, domestic urea production and operating rates both increased, with market conditions characterized by an initial strength followed by weakness; Q1 saw price increases driven by export expectations and spring farming demand, while Q2 experienced volatile declines due to high supply, weak demand, and less-than-expected export policies, leading to continuous price reductions - From January to June 2025, domestic urea production was approximately **35.67 million tons**, a **10%** increase year-on-year, with the average operating rate of the domestic urea industry at approximately **84%**, a **6.7%** increase year-on-year[55](index=55&type=chunk) - In the first half of 2025, the urea market exhibited a 'strong first, then weak' phased characteristic; in Q1, strong export expectations led to a robust market rally[55](index=55&type=chunk) - In Q2, high supply and weak demand led to volatile downward market conditions; industrial and agricultural demand gradually weakened in April; in May, export policies fell short of market expectations, causing prices to surge and then fall back; in June, loose supply and demand dominated the market, with weak domestic demand leading manufacturers to continuously lower prices[56](index=56&type=chunk) [Strategies](index=26&type=section&id=Strategies) Facing a challenging market, the Group implemented technical upgrades, cost controls, and sales model optimization in the first half, and for the second half, will focus on securing raw material supply, continuous cost reduction, performance-based assessments, employee training, sales model enhancements (developing new urea products, expanding customer base), major overhaul preparations, inventory management reform, procurement cost reduction, authorization system reform, and new project development to upgrade products and strengthen competitiveness - In the first half, through technical upgrades and major overhaul work, issues such as declining performance of methanol and synthesis tower catalysts were effectively resolved, reducing production operating costs and achieving historically low production unit consumption; by optimizing the full-category bidding model, dynamically adjusting bidding and contract signing ratios, profitability was maximized[57](index=57&type=chunk) - Second-half strategies include: continuing to organize and coordinate production raw materials such as water, electricity, and gas to ensure long-term, high-load operation of the Dazhou Jiuyuan Plant and Guang'an Jiuyuan Plant units[57](index=57&type=chunk) - Continuously promoting special improvements, identifying and implementing various 'increase revenue, reduce expenditure, cut costs, and enhance efficiency' measures to lower operating costs and reduce waste[59](index=59&type=chunk) - Continuously promoting measures such as performance appraisal, salary reform, special bonuses, and skill assessment, guided by the Company's operating results, to stimulate team creativity and execution[59](index=59&type=chunk) - Implementing sales model optimization: for chemical products, intensifying efforts to develop small and medium-sized end customers to further expand the high-quality customer base; for fertilizer products, developing new types of urea to achieve product iteration and upgrades, further enhancing product market competitiveness[59](index=59&type=chunk) - Preparing for annual unit overhauls to reduce unplanned shutdowns during the year, increase output, and lower consumption; exploring the feasibility of extending unit overhaul cycles from one year to two years[59](index=59&type=chunk) - Promoting spare parts inventory reform to gradually reduce inventory capital occupation; gradually reducing the proportion of sole suppliers and adopting a bidding model for procurement to lower procurement costs and improve procurement quality[60](index=60&type=chunk) - Driving the approval, commencement, and construction of new projects, revitalizing existing assets, and gradually achieving enterprise product upgrades, transitioning from pure basic chemicals to fine chemicals based on basic chemicals, thereby enhancing the Group's competitiveness[60](index=60&type=chunk) [Acknowledgements](index=29&type=section&id=Acknowledgements) The Chairman, on behalf of the Board, thanks all employees for their teamwork in navigating market volatility, ensuring stable plant operations, and achieving optimal efficiency, with the Group planning to stabilize basic chemical businesses and pursue new projects in the second half - Under the leadership of the Board and management, all employees united to conduct production and operation activities market-oriented, promptly tracking market conditions and performing real-time calculations to ensure optimal operational efficiency and long-term stable operation of the units[62](index=62&type=chunk) - In the second half of the year, the Group will continue to follow the Board's decisions and strategies, under the leadership of management, to stabilize basic chemical businesses, explore new projects, and seize market opportunities[62](index=62&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=30&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) This section details the Group's liquidity position, including net current liabilities, available financial resources, capital commitments, gearing ratio, and contingent liabilities [Liquidity](index=30&type=section&id=Liquidity) As of June 30, 2025, the Group faced net current liabilities of approximately RMB 3,265,424 thousand, with limited cash and bank deposits within current assets, and current liabilities primarily comprising borrowings and amounts due to a related company - As of June 30, 2025, the Group had **net current liabilities** of approximately **RMB 3,265,424 thousand**[63](index=63&type=chunk) - Current assets as of June 30, 2025, included **cash and bank balances** of approximately **RMB 29,036 thousand** and **restricted and pledged bank deposits** of approximately **RMB 60,918 thousand**[63](index=63&type=chunk) - Current liabilities as of June 30, 2025, included **borrowings** of approximately **RMB 1,925,926 thousand** and **amounts due to a related company** of approximately **RMB 837,257 thousand**[63](index=63&type=chunk) [Capital Commitments](index=30&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group had outstanding capital commitments of approximately RMB 215,918 thousand - As of June 30, 2025, the Group had outstanding capital commitments of approximately **RMB 215,918 thousand**[64](index=64&type=chunk) [Financial Resources](index=30&type=section&id=Financial%20Resources) As of June 30, 2025, the Group's financial resources included cash and bank balances of approximately RMB 29,036 thousand and restricted and pledged bank deposits of approximately RMB 60,918 thousand, with no available unutilized bank facilities, and plans to fund future operations and capital expenditures through existing balances and operating cash flows - As of June 30, 2025, the Group had **cash and bank balances** of approximately **RMB 29,036 thousand** and **restricted and pledged bank deposits** of approximately **RMB 60,918 thousand**, with no unutilized bank facilities[65](index=65&type=chunk) - The Company intends to fund the Group's future operations, capital expenditures, and other capital needs through existing bank balances and cash flows generated from operating activities[65](index=65&type=chunk) [Gearing Ratio](index=30&type=section&id=Gearing%20Ratio) As of June 30, 2025, the Group's gearing ratio increased to 94%, up from 88% as of December 31, 2024 - As of June 30, 2025, and December 31, 2024, the Group's **gearing ratio** was **94%** and **88%**, respectively[66](index=66&type=chunk) - The gearing ratio is calculated based on net debt divided by total capital[66](index=66&type=chunk) [Contingent Liabilities](index=30&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[67](index=67&type=chunk) [Other Significant Information](index=31&type=section&id=Other%20Significant%20Information) This section covers material acquisitions/disposals, segment information, future investment plans, employee data, pledge of assets, and foreign exchange risk [Material Acquisitions/Disposals](index=31&type=section&id=Material%20Acquisitions%2FDisposals) For the six months ended June 30, 2025, the Group did not undertake any material acquisitions or disposals - For the six months ended June 30, 2025, the Group had no material acquisitions or disposals[68](index=68&type=chunk) [Segment Information](index=31&type=section&id=Segment%20Information) Segment information is not presented as the Group's operations are primarily conducted in China and fall within the same business segment - The Group's operations are primarily conducted in China and fall within the same business segment; therefore, no segment information is presented for the six months ended June 30, 2025[69](index=69&type=chunk) [Future Investment Plans](index=31&type=section&id=Future%20Investment%20Plans) Apart from the disclosed plans for three new production lines at Dazhou, Guang'an Chemical, and Guang'an Materials plants, and the Jiangsu plant, the Group has no other significant investment plans - Save for the plans disclosed in the Chairman's Statement in this interim report, the Company's circular dated December 4, 2020 (establishment of three new production lines at Dazhou Plant, Guang'an Chemical Plant, and Guang'an Materials Plant), and the Company's circular dated November 19, 2021 (Jiangsu Plant), there are no other significant investment plans[70](index=70&type=chunk) [Employee Information](index=31&type=section&id=Employee%20Information) As of June 30, 2025, the Group's total workforce decreased to 709 employees (from 821 in 2024), with the majority (707 employees) stationed in China | Category | As of June 30, 2025 (Number of persons) | 2024 (Number of persons) | | :--- | :--- | :--- | | Management | 4 | 3 | | Finance and Administration | 109 | 112 | | Production | 588 | 693 | | Sales, Marketing and R&D | 8 | 13 | | **Total** | **709** | **821** | - Of these employees, **707** were stationed in China and **2** in Hong Kong[71](index=71&type=chunk) [Pledge of the Group's Assets](index=32&type=section&id=Pledge%20of%20the%20Group%27s%20Assets) As of June 30, 2025, the Group's assets, including land use rights, buildings, equipment, machinery, mining rights, and bank deposits, were pledged as collateral for borrowings and bills payable, with the total pledged assets decreasing from the previous year | Pledged Assets | As of June 30, 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Land use rights and buildings | 317,414 | 492,526 | | Equipment and machinery | 650,105 | 912,999 | | Mining rights | 334,306 | 334,306 | | Bank deposits | 60,412 | 576,600 | [Foreign Exchange Risk](index=32&type=section&id=Foreign%20Exchange%20Risk) The Group is exposed to foreign exchange risk due to certain foreign currency-denominated loans, primarily in Hong Kong Dollars, with management continuously monitoring and considering hedging when necessary - The Group is exposed to foreign exchange risk as certain portions of its loans are denominated in foreign currencies, primarily **Hong Kong Dollars**[73](index=73&type=chunk) - Management monitors foreign exchange risk and considers hedging significant foreign exchange exposures when necessary[73](index=73&type=chunk) [Equity and Corporate Governance](index=33&type=section&id=Equity%20and%20Corporate%20Governance) This section outlines the Company's share option scheme, outstanding convertible securities, directors' and substantial shareholders' interests, changes in board information, directors' interests in competing businesses, going concern status, code of conduct for securities transactions, share dealings, post-reporting period events, audit committee, and corporate governance practices [Share Option Scheme](index=33&type=section&id=Share%20Option%20Scheme) As of June 30, 2025, a total of 363,992 thousand share options remained unexercised under the Company's share option scheme, with 14,820 thousand forfeited/lapsed during the period, and the 2020 scheme having approximately 5.3 years remaining and 186,312,259 options available for grant | Metric | As of January 1, 2025 (thousands of units) | Granted during the period (thousands of units) | Forfeited/Lapsed during the period (thousands of units) | As of June 30, 2025 (thousands of units) | | :--- | :--- | :--- | :--- | :--- | | Directors | 300,000 | – | – | 300,000 | | Employees | 78,812 | – | (14,820) | 63,992 | | **Total** | **378,812** | **–** | **(14,820)** | **363,992** | - Share Option A has an exercise price of **HK$0.151**, Share Option B **HK$0.141**, and Share Option C **HK$0.182**[75](index=75&type=chunk) - As of June 30, 2025, **186,312,259 share options** were available for grant under the Company's share option scheme adopted on October 23, 2020, representing approximately **3.09%** of the Company's shares as of June 30, 2025[76](index=76&type=chunk) - The remaining term of the share option scheme adopted on October 23, 2020, was approximately **5.3 years** as of June 30, 2025[76](index=76&type=chunk) [Outstanding Convertible Securities](index=34&type=section&id=Outstanding%20Convertible%20Securities) As of June 30, 2025, the Company had 7,700,000 thousand outstanding convertible securities maturing on November 29, 2026, with a conversion price of HK$0.108 and no redemption capability, which, if fully converted, would lead to significant share capital dilution and a diluted loss per share of RMB 1.35 cents | Metric | Details | | :--- | :--- | | Maturity date of outstanding convertible securities | November 29, 2026 | | Conversion price | HK$0.108 | | Number of shares convertible | 7,700,000 thousand units | | Redemption capability | None | - Assuming all outstanding convertible securities were converted into Company shares as of June 30, 2025, the total number of shares of the Company after conversion would be **13,728,042,599 shares**[78](index=78&type=chunk) - Assuming full conversion of all outstanding convertible securities, Mr. Tang Kwok Keung's equity percentage would increase from **2.82% to 57.33%**[78](index=78&type=chunk) - The diluted loss per share for the year ended June 30, 2025, assuming full conversion of all outstanding convertible securities, would be **RMB 1.35 cents**[79](index=79&type=chunk) [Disclosure of Interests](index=36&type=section&id=Disclosure%20of%20Interests) This section discloses the interests of directors and substantial shareholders in the Company's shares, related shares, or debentures as of June 30, 2025, in compliance with the Securities and Futures Ordinance and Listing Rules [Directors' Interests in the Company](index=36&type=section&id=Directors%27%20Interests%20in%20the%20Company) As of June 30, 2025, Mr. Tang Kwok Keung held 169,800,000 shares and 7,700,000,000 bonds in the Company, totaling 130.55% of the issued share capital (assuming conversion), with Mr. Shi Jianmin and Mr. Zhang Weihua also holding significant shares and share options | Director | Long position in shares (Beneficial owner) | Long position in bonds (Beneficial owner) | Total long position in shares and related shares | Interest in issued share capital (%) | | :--- | :--- | :--- | :--- | :--- | | Tang Kwok Keung | 169,800,000 | 7,700,000,000 | 7,869,800,000 | 130.55% | | Shi Jianmin | 107,000,000 | 300,000,000 | 407,000,000 | 6.75% | | Zhang Weihua | 500,000,000 | – | 500,000,000 | 8.29% | - As of June 30, 2025, **69,800,000 shares** of Mr. Tang Kwok Keung's **169,800,000 shares** long position were held by Coherent Gallery International Limited, wholly owned by Mr. Tang Kwok Keung[81](index=81&type=chunk) - As of June 30, 2025, Mr. Zhang Weihua indirectly owned China Mass Enterprises Limited through Jiangsu Kangtai Holding Group Co., Ltd., which held a total of **500,000,000 shares** in the Company[81](index=81&type=chunk) [Substantial Shareholders' Interests in the Company](index=37&type=section&id=Substantial%20Shareholders%27%20Interests%20in%20the%20Company) As of June 30, 2025, the Company was not aware of any persons, other than the disclosed directors, holding 10% or more interests in shares or related shares requiring disclosure under the Securities and Futures Ordinance - As of June 30, 2025, to the best knowledge of any Director or chief executive of the Company, save as disclosed above, no person (other than a Director or chief executive of the Company) had an interest or short position in the shares or related shares of the Company which would fall to be disclosed to the Company and The Stock Exchange of Hong Kong Limited under Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance, or which was recorded in the register required to be kept under Section 336 of the Securities and Futures Ordinance, or was deemed, directly or indirectly, to be interested in 10% or more of the nominal value of any class of share capital carrying rights to vote in all circumstances at general meetings of the Company[83](index=83&type=chunk) [Interests of Other Persons in the Company](index=37&type=section&id=Interests%20of%20Other%20Persons%20in%20the%20Company) As of June 30, 2025, the Company was not aware of any persons (other than directors or chief executives) holding 5% or more interests in shares or related shares requiring disclosure under the Securities and Futures Ordinance - As of June 30, 2025, to the best knowledge of any Director or chief executive of the Company, save as disclosed above, no person (other than a Director or chief executive of the Company) had an interest or short position in the shares or related shares of the Company which would fall to be disclosed to the Company and The Stock Exchange of Hong Kong Limited under Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance, or which was recorded in the register required to be kept under Section 336 of the Securities and Futures Ordinance, or was deemed, directly or indirectly, to be interested in 5% or more of the nominal value of any class of share capital carrying rights to vote in all circumstances at general meetings of the Company[84](index=84&type=chunk) [Changes in Board and Directors' Information](index=37&type=section&id=Changes%20in%20Board%20and%20Directors%27%20Information) There have been no other changes to the Board and directors' information since the date of the 2024 annual report, except for the appointment of Mr. Fan Chao as an executive director effective May 1, 2025 - Save as disclosed in the Company's announcement dated April 30, 2025, regarding the appointment of Mr. Fan Chao as an executive director with effect from **May 1, 2025**, there have been no other changes to the Board and directors' information since the date of the Company's annual report for the year ended December 31, 2024[85](index=85&type=chunk) [Directors' Interests in Competing Businesses](index=38&type=section&id=Directors%27%20Interests%20in%20Competing%20Businesses) During the review period, none of the Company's directors, management shareholders, or their associates held any business interests that competed or might compete with the Company's business - During the review period, none of the Company's Directors or management shareholders and their respective associates held any business interests that competed or might compete with the Company's business[86](index=86&type=chunk) [Going Concern and Mitigation Measures](index=38&type=section&id=Going%20Concern%20and%20Mitigation%20Measures) The Group is involved in litigation with banks but has implemented various measures to improve liquidity and financial position, including successfully restructuring most bank loans, with the latest information disclosed as of June 30, 2025 - The Group is involved in certain litigation with banks, and the Group has taken various measures to improve its liquidity and financial position, as detailed in the Company's 2024 annual report[87](index=87&type=chunk) - The Group has been negotiating with banks to renew or restructure loans, and most bank loans have been restructured[87](index=87&type=chunk) [Code of Conduct for Securities Transactions by Directors](index=38&type=section&id=Code%20of%20Conduct%20for%20Securities%20Transactions%20by%20Directors) The Company has adopted a code of conduct for directors' securities transactions no less exacting than the Model Code and confirms that all directors have complied with it - For the six months ended June 30, 2025, the Company adopted a code of conduct for directors' securities transactions with terms no less exacting than the Model Code for Securities Transactions by Directors of Listed Issuers[88](index=88&type=chunk) - The Company has also made specific enquiries with all Directors, and the Company is not aware of any non-compliance by any Director with the required standards for securities transactions and the code of conduct for securities transactions by Directors[88](index=88&type=chunk) [Purchase, Sale or Redemption of Shares](index=38&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20Shares) During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares - During the review period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares[89](index=89&type=chunk) [Events After Reporting Period](index=38&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the reporting period and up to the date of approval of this report - No significant events occurred after the reporting period and up to the date of approval of this report[90](index=90&type=chunk) [Audit Committee](index=39&type=section&id=Audit%20Committee) Established in 2003, the Audit Committee comprises three independent non-executive directors responsible for reviewing and monitoring the Group's financial reporting processes and internal control systems, and has reviewed the unaudited interim financial statements for the current period - The Audit Committee was established on **June 10, 2003**, and its terms of reference are set out in writing in accordance with the Corporate Governance Code[91](index=91&type=chunk) - As of the date of this interim report, the Audit Committee comprises **three members**, including three independent non-executive directors: Mr. Xu Congcai, Mr. Le Yiren, and Ms. Lu Yi[91](index=91&type=chunk) - The Audit Committee has reviewed the accounting principles and practices adopted by the Company and the Group with management and discussed internal control and financial reporting matters, including the unaudited interim financial statements of the Company and the Group for the six months ended June 30, 2025[91](index=91&type=chunk) [Corporate Governance](index=39&type=section&id=Corporate%20Governance) The Company has established Board practices and procedures in accordance with the Code set out in Appendix 14 of the Listing Rules since January 1, 2005, and has taken appropriate actions to comply with the Code provisions - Since **January 1, 2005**, the Board's practices and procedures have been established in accordance with the Code set out in Appendix 14 of the Listing Rules[92](index=92&type=chunk) - The Company has taken appropriate actions to comply with the Code, and the Group has complied with the Code provisions contained therein[92](index=92&type=chunk)

Ko Yo Chemical (Group) Limited 玖源化工（集團）有限公司 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立的有限公司） (Stock Code 股份代號: 00827) NOTIFICATION LETTER 通知信函 Dear Non-registered Shareholder(s)(Note 1) , 4 September 2025 The following document(s) of Ko Yo Chemical (Group) Limited (the "Company") has/have been prepared in English and Chinese and is/are available on the websites of the Company at www.koyochem.com and The Stock Exchange of Hong Kong Limited at www.hkexnews.hk (collectively "Website ...

Ko Yo Chemical (Group) Limited 玖源化工（集團）有限公司 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立的有限公司） (Stock Code 股份代號: 00827) NOTIFICATION LETTER 通知信函 Dear Registered Shareholder(s), 4 September 2025 The following document(s) of Ko Yo Chemical (Group) Limited (the "Company") has/have been prepared in English and Chinese and is/are available on the websites of the Company at www.koyochem.com and The Stock Exchange of Hong Kong Limited at www.hkexnews.hk (collectively "Websites"):- • 2025 ...