Financial Performance - For the year ended December 31, 2021, the net cash inflow from operating activities before changes in working capital and payment of income tax and interest was approximately RMB 894 million, an increase of approximately RMB 160 million compared to RMB 734 million in 2020[7]. - The profit attributable to shareholders for the year ended December 31, 2021, was approximately RMB 379 million, an increase of approximately RMB 621 million compared to a loss of RMB 242 million in 2020[7]. - The basic earnings per share for the year ended December 31, 2021, was approximately RMB 0.0683[7]. - The sales revenue for the year ended December 31, 2021, was approximately RMB 3,067 million, an increase of approximately 45.3% compared to 2020[7]. - The sales cost was approximately RMB 2,253,000,000, an increase of 8.5% from 2020, mainly due to rising raw material prices[37]. - The group's gross profit margin increased from approximately 1.6% in 2020 to 26.5% in 2021, attributed to rising product prices[38]. - The company recorded a revenue of approximately RMB 3,067,000,000, an increase of 45.3% compared to the previous year, primarily due to increased sales of urea and ammonia[36]. Production and Operations - The company achieved record production days at its Guang'an facility in 2021, reflecting improved operational efficiency[9]. - The total production of urea in China for 2021 was 53.7 million tons, a slight decrease of 0.06% compared to 2020[11]. - The cumulative production of synthetic ammonia in 2021 was 49.5 million tons, a slight decrease of 0.08% year-on-year[17]. - The total methanol production for the year reached 67.28 million tons, an increase of 3.71 million tons or 5.68% compared to 2020[14]. - The average operating rate of domestic synthetic ammonia enterprises in 2021 was 70%, a decrease of 4.11% from 2020[17]. Market Trends - The company expects the domestic urea prices to show a trend of high in the first half and low in the second half of 2022 due to various market factors[13]. - The overall market environment for methanol in 2022 is expected to be under pressure, with a high probability of weak fluctuations throughout the year[16]. Investments and Projects - The company plans to invest approximately RMB 15 billion in a 300,000 tons/year dimethyl carbonate project, which is expected to generate an output value of RMB 2.9 billion upon completion[26]. - The Guangan Hongyuan Technology project will involve an investment of approximately RMB 800 million, with an expected output value of RMB 8 billion after completion[28]. - The company is advancing a 400,000 tons/year hexamethylenediamine project with a total investment of approximately RMB 5.85 billion, expected to generate an output value of RMB 14.55 billion[31]. Corporate Governance - The company’s independent directors bring extensive academic and practical experience, enhancing governance and strategic oversight[64][66]. - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and internal control systems[113]. - The company’s board of directors includes three executive directors and three independent non-executive directors, with specific terms for re-election at the annual general meeting[84]. Environmental Management - The company has implemented a comprehensive environmental management system, with most operations certified under ISO 14001[147]. - The company emitted 355,472.44 tons of CO2 equivalent greenhouse gases, with a density of 11.7 tons per square meter of total production area[138]. - The total energy consumption reached 999,384,670 kWh, with an overall energy density of 32,883 kWh per square meter[151]. - The company plans to reduce total emissions at the Guang'an plant by 1,930 tons of CO2 equivalent annually over the next 10 years, totaling a reduction of 193,000 tons[145]. Workforce and Training - The company has a total workforce of 575 employees, with 90% being frontline and other staff[168]. - A total of 31,872 training hours were provided to 377 employees during the reporting period, averaging 38 hours per employee[190][193]. - The percentage of trained employees reached 91% for senior management, 67% for middle management, and 62% for frontline and other staff[191]. Customer and Supplier Relations - The top five customers accounted for approximately 34.8% of the total revenue, with the largest customer contributing about 14.1%[118]. - The top five suppliers represented around 90.1% of total purchases, with the largest supplier accounting for approximately 40.7%[118]. Safety and Compliance - The company reported zero work-related fatalities in 2021, maintaining a consistent record from previous years[186]. - The company adheres to all relevant labor laws, including those prohibiting child labor, and has not reported any significant violations during the reporting period[194]. - The company has established a health, safety, and quality department to ensure a zero-harm workplace and continuously improve safety management systems[183].

Financial Performance - For the six months ended June 30, 2021, the group reported unaudited revenue of approximately RMB 1,347,031,000, an increase of about 35.4% compared to the same period last year[3]. - The group's unaudited profit attributable to shareholders for the same period was approximately RMB 154,000,000, an increase of RMB 257,300,000 compared to the previous year[3]. - The unaudited operating profit before interest, tax, depreciation, and amortization for the six months ended June 30, 2021, was approximately RMB 330,200,000, up from RMB 62,700,000 in the previous year, representing an increase of RMB 267,500,000[3]. - The basic earnings per share for the six months ended June 30, 2021, were approximately RMB 2.81, compared to a loss of RMB 1.88 in the previous year[3]. - The company reported a profit before tax of RMB 159,261,000 for the six months ended June 30, 2021, compared to a loss of RMB 115,509,000 in the same period of 2020[42]. - The gross profit margin increased from approximately 0.3% in the same period last year to 21.6% due to rising product prices[67]. - The company reported a basic earnings per share of RMB 28.05 for the six months ended June 30, 2021, compared to a loss per share of RMB 18.79 in the same period of 2020[50]. Sales and Production - The total sales volume (excluding trading) reached approximately 566,319 tons, a decrease of 3.6% compared to the same period last year[3]. - Urea sales contributed RMB 401,313,000, accounting for 29.8% of total revenue, while methanol sales were RMB 372,186,000, representing 27.6% of total revenue[40]. - The average operating rate for methanol in the first half of 2021 was 73%, with a production increase of 24.2% year-on-year[73]. - The domestic urea production in the first half of 2021 was 27.9 million tons, a year-on-year decrease of 0.79%[87]. - The average operating rate of urea in China in the first half of 2021 was 70.47%, down 2.97% year-on-year[87]. - The export volume of liquid ammonia in the first half of 2021 is estimated to reach 2.468 million tons, a year-on-year increase of 13.74%[79]. Cash Flow and Assets - The net cash generated from operating activities was RMB 157,145,000, compared to RMB 94,099,000 in the previous year[28]. - The total assets as of June 30, 2021, were RMB 2,960,951,000, an increase from RMB 2,847,247,000 as of December 31, 2020[21]. - The total liabilities as of June 30, 2021, were RMB 2,788,435,000, a decrease from RMB 2,828,730,000 as of December 31, 2020[25]. - The company's short-term borrowings amounted to RMB 1,860,964,000 as of June 30, 2021, slightly down from RMB 1,886,250,000 at the end of 2020[61]. - The group's debt-to-capital ratio was 92% as of June 30, 2021, compared to 99% at the end of 2020[100]. Dividends and Share Structure - The group did not recommend any interim dividend for the six months ended June 30, 2021[4]. - The company has not declared any dividends for the six months ended June 30, 2021[51]. - The company reported a total of 305,700 shares outstanding as of June 30, 2021, with a significant portion attributed to convertible securities[119]. - The diluted earnings per share for the period was calculated at RMB 0.0186, assuming all unexercised convertible securities were converted[121]. - The company has outstanding convertible securities that could potentially convert into 1,002,675,000 shares, significantly impacting the equity structure[118]. - The company’s equity structure will change significantly if all unexercised convertible securities are converted, potentially increasing the total shares to 8,300,717,599[119]. Operational Efficiency and Strategy - The company implemented various incentive measures to enhance team performance, resulting in significant improvements in economic benefits and operational efficiency[69]. - The company aims to implement cost-reduction measures and improve operational efficiency to adapt to the post-pandemic environment[90]. - The company plans to enhance the organization and coordination of production materials such as water, electricity, and gas to ensure stable operations[90]. - The company is focusing on upgrading its products from basic chemicals to fine chemicals to enhance competitiveness[93]. - The company plans to optimize its sales model to increase the proportion of direct sales customers and enhance local customer sales scale[93]. Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the company's financial reporting procedures and internal control systems[141]. - The company has adopted a standard code of conduct for securities trading, ensuring compliance with trading regulations[138]. - The company has taken appropriate actions to comply with corporate governance codes since January 1, 2005[142]. - No directors or senior executives have disclosed any interests in competitive businesses during the review period[136]. Employee and Workforce - As of June 30, 2021, the group had 643 employees, a slight decrease from 649 in the previous year[109]. - The total number of employees increased to 5,300, up from 3,800, representing a growth of approximately 39.5%[115].

Financial Performance - For the year ended December 31, 2020, the net cash inflow from operating activities before changes in working capital and tax payments was approximately RMB 159.9 million, an increase of about RMB 76.4 million compared to RMB 83.5 million in 2019[7]. - The loss attributable to shareholders for the year was approximately RMB 242 million, a decrease of about RMB 490 million compared to a loss of RMB 732 million in 2019[7]. - The adjusted loss attributable to shareholders for 2020 was approximately RMB 229 million, a decrease of about RMB 84 million compared to an adjusted loss of RMB 313 million in 2019[7]. - The basic loss per share for the year was approximately RMB 0.0441[7]. - The total sales revenue for the year was approximately RMB 2.111 billion, an increase of about 7.5% compared to the previous year[7]. - The sales cost was approximately RMB 2,077,000,000, an increase of 6.1% from 2019, mainly due to increased sales volume[34]. - The gross profit margin increased from approximately 0.3% in 2019 to 1.6% in 2020, attributed to higher product output[35]. - Other income increased from approximately RMB 5,500,000 in 2019 to approximately RMB 23,800,000 in 2020, primarily due to the reversal of impairment losses on mining rights and increased subsidy income[35]. - The total revenue for urea in 2020 was RMB 620,000,000, a 12% increase from RMB 554,000,000 in 2019[39]. - The total revenue for ammonia in 2020 was RMB 699,000,000, reflecting a 20% increase from RMB 583,000,000 in 2019[39]. Production and Sales - The total production of urea in 2020 was approximately 54.32 million tons, an increase of about 3.78% compared to 2019[10]. - The average ex-factory price of urea in 2020 was RMB 1,678 per ton, a decrease of RMB 164 per ton compared to RMB 1,842 per ton in 2019[10]. - The sales volume of urea increased by 25% to 407,162 tons, while the sales revenue was RMB 620 million, a 12% increase[7]. - In 2021, domestic urea production is expected to increase with a planned new capacity of 5.84 million tons[12]. - Agricultural demand for fertilizers is projected to rise due to increased grain prices in 2020, leading to higher fertilizer input from farmers in 2021[12]. - Global urea demand is anticipated to grow significantly, benefiting China's urea export volume, which is expected to increase year-on-year[12]. Future Outlook and Investments - The company plans to invest in a 300,000 tons/year dimethyl carbonate project at the Dazhou factory, utilizing existing equipment and low-cost raw materials, which is expected to provide a new profit growth point[25]. - The Guangan factory is set to develop a 400,000 tons/year hexamethylenediamine project and an 800,000 tons/year nylon 66 project, with a projected annual demand growth rate of 15% for hexamethylenediamine in the domestic market[26]. - The company is advancing a 300,000 tons/year PBAT and 200,000 tons/year PBS project, with a total investment of approximately RMB 800,000,000, expected to generate an output value of RMB 8,000,000,000 upon completion[28]. - The company plans to focus on internal reforms and innovations to adapt to the changing fertilizer and chemical industry dynamics in 2021[20]. Corporate Governance and Structure - The main business of the company includes investment holding, with subsidiaries engaged in the R&D, production, marketing, and distribution of chemical products, fertilizers, and bulk blended fertilizers[66]. - The company underwent a restructuring in June 2003 to prepare for its shares listing on the GEM of the Stock Exchange, which was completed on July 10, 2003[65]. - The group has a history of over 30 years of management experience among its executive directors, contributing to its operational stability[60]. - The board of directors adopted high corporate governance standards, complying with the corporate governance code throughout the review year[195]. - The board consists of six members, with three executive directors and three independent non-executive directors as of December 31, 2020[196]. - Independent non-executive directors account for over one-third of the board members, ensuring compliance with listing rules[196]. Environmental and Safety Practices - The company is committed to sustainable development and aims to expand its operations and production capacity in response to government support for the non-public sector economy[119]. - The company has integrated three management systems: ISO 9001, ISO 14001, and ISO 50001, to ensure compliance with applicable regulations and standards[119]. - The company implemented measures to reduce emissions by installing high-pressure boilers and low-nitrogen conversion burners to improve energy efficiency[141]. - The company has adopted a comprehensive environmental management system, with most operations certified to ISO 14001[143]. - The company reported zero work-related fatalities in 2020, maintaining a consistent record since 2016[178]. - The company encourages environmental protection and energy-saving management practices among employees, including recycling initiatives[155]. Employee and Labor Practices - The company employed a total of 558 full-time employees as of December 31, 2020, with a gender distribution of 80% male and 20% female[158]. - The employee turnover rate during the reporting period was 16.5%, with 92 full-time employees leaving the company[166]. - Total training hours provided to 400 employees amounted to 14,220 hours in 2020, indicating a strong commitment to employee development[184]. - The percentage of trained employees reached 56% for frontline and other staff, 51% for middle management, and 73% for senior management[182]. - The company strictly adheres to labor standards, with no reported violations regarding child labor or forced labor laws during the reporting period[184]. Shareholder Information - The company reported a total of 9,900,000 shares held by directors as of December 31, 2020, with 300,000 shares granted during the year[85]. - The total number of unexercised stock options as of December 31, 2020, was 305,700,000 shares, with 4,200,000 shares forfeited during the year[85]. - The company’s executive directors are entitled to a discretionary bonus not exceeding 3% of the audited consolidated profit attributable to shareholders for the financial year[78]. - The company reported that it had no ability to meet redemption obligations for its convertible securities based on cash and cash equivalents as of December 31, 2020[101]. - Major shareholder Zheng Jianming held 800,000,000 shares, representing approximately 14.58% of the total shares[93].

Financial Performance - For the six months ended June 30, 2020, the group reported an unaudited loss attributable to shareholders of approximately RMB 103.3 million, a decrease in loss of RMB 225 million compared to the same period last year [3]. - The group's unaudited revenue for the same period was approximately RMB 995 million, representing an increase of about 4.3% year-on-year, primarily due to increased production [4]. - The basic loss per share for the six months ended June 30, 2020, was approximately RMB 1.88, compared to RMB 7.64 in the same period last year [4]. - The pre-tax loss for the six months ended June 30, 2020, was RMB (115,509,000), a significant improvement from a loss of RMB (341,433,000) in the same period of 2019, indicating a reduction in losses by approximately 66% [26]. - The basic and diluted loss per share for the six months ended June 30, 2020, was RMB (0.0188), an improvement from RMB (0.0763) in the same period of 2019 [34]. - The company did not recommend any interim dividend for the six months ended June 30, 2020 [5]. - The company did not declare any dividends for the six months ended June 30, 2020, as per the board's recommendation [35]. Sales and Production - Total sales volume (excluding trade) reached approximately 587,750 tons, an increase of 24.8% compared to the same period last year [4]. - The revenue from urea sales was RMB 352,350,000, accounting for 35.4% of total revenue, up from 30.4% in the previous year [23]. - The revenue from ammonia sales was RMB 325,050,000, representing 32.7% of total revenue, compared to 31.9% in the previous year [23]. - The company experienced a decrease in sales of methanol, generating RMB 305,691,000, which accounted for 30.7% of total revenue, down from 35.1% in the previous year [23]. - Total sales volume (excluding trade) reached approximately 587,750 tons, an increase of 24.8% compared to 471,127 tons in the same period last year [48]. - Urea production in the first half of 2020 was 27.127 million tons, up 3.3% from 26.245 million tons in the same period of 2019 [60]. - The total production of synthetic ammonia in the first half of 2020 was approximately 26 million tons, a decrease of 9.7% year-on-year, primarily due to the impact of the pandemic and the conversion of production facilities to urea [64]. Cash Flow and Assets - The unaudited cash generated from operating activities was approximately RMB 16.79 million, an increase of RMB 60.58 million compared to cash outflow of RMB 43.79 million in the same period last year [4]. - The net cash generated from operating activities was RMB 28.98 million, compared to a cash outflow of RMB 30.72 million in the same period last year [13]. - The total assets as of June 30, 2020, were RMB 2.90 billion, a decrease from RMB 2.98 billion as of December 31, 2019 [9]. - Total liabilities as of June 30, 2020, were RMB 2.77 billion, compared to RMB 2.75 billion as of December 31, 2019 [11]. - The company’s net current liabilities as of June 30, 2020, amounted to RMB 1,704,697,000, indicating a need for careful cash flow management [18]. - The group has cash and bank balances of approximately RMB 6,415,000 as of June 30, 2020, with no available bank credit [77]. - The group reported net current liabilities of approximately RMB 1,704,697,000 as of June 30, 2020 [75]. Cost Management - The gross profit margin decreased from approximately 1.5% in the previous year to 0.3% due to a decline in product prices [49]. - Sales costs amounted to approximately RMB 992 million, an increase of about 5.6% year-on-year, attributed to increased sales volume [49]. - Distribution costs increased by approximately 11.3% due to higher sales volume [49]. - Administrative expenses decreased by about 35.9% compared to the same period last year, due to reduced impairment losses on equipment and effective cost control [49]. Strategic Initiatives - The company plans to enhance production efficiency by optimizing resource organization and implementing cost-reduction measures to cope with the economic downturn caused by the pandemic [69]. - The company anticipates that the synthetic ammonia market will improve in the second half of 2020, driven by new production facilities and regional supply-demand dynamics [67]. - The company aims to strengthen employee training and improve management capabilities to enhance operational efficiency and adaptability in a challenging market environment [69]. - The group aims to optimize the sales model to increase the proportion of direct sales customers and enhance local customer sales scale [71]. - The group plans to gradually reduce the proportion of exclusive suppliers to lower procurement costs and improve procurement quality [71]. - The group plans to promote new project approvals and construction to enhance competitiveness [71]. Workforce and Governance - The company has 649 employees as of June 30, 2020, a decrease from 665 in 2019 [88]. - The audit committee, established on June 10, 2003, consists of three independent non-executive directors [113]. - The company has adopted a standard code of conduct for securities trading, compliant with trading regulations [112]. - The company has taken appropriate actions to comply with the corporate governance code since January 1, 2005 [116]. Shareholder Information - Major shareholder Zheng Jianming held 800,000,000 shares (14.58%) before conversion, which would increase to 1,801,375,000 shares (23.09%) post-conversion [96]. - Public shareholders held 3,887,742,599 shares (70.84%) before conversion, which would decrease to 52.54% post-conversion [96]. - The total number of shares before conversion of unexercised convertible securities was 5,488,042,599, which would increase to 7,800,717,599 after conversion, representing a 42.00% increase [96]. - The total equity interest of director Tang Guoqiang was reported at 130.83%, including 7,180,000,000 shares and related securities [104]. - The company proposed a new share option plan, granting 300,000,000 options to director Shi Jianmin at an exercise price of HKD 0.141 per share, pending shareholder and exchange approval [104]. - The company has three types of convertible securities with maturity dates in November 2024, January 2024, and March 2024 [98]. - The total number of shares held by major shareholders and directors represents significant control over the company, with Zheng Jianming and Zhang Weihua holding substantial stakes [106]. Market Conditions - As of mid-2020, China's methanol production capacity reached 90.28 million tons, maintaining a high growth rate, with a 130.77% increase in new capacity compared to the same period last year [56]. - In the first half of 2020, methanol production totaled 32.65 million tons, with an average operating rate of 66.14%, showing a year-on-year production decline of 0.29% and an operating rate decline of 8.79% [56]. - Methanol imports in the first half of 2020 amounted to 5.978 million tons, an increase of 1.3296 million tons or 28.6% year-on-year [56]. - The average operating rate of domestic urea enterprises was 62.72% in the first half of 2020, with urea exports of 1.6 million tons, a decrease of 5.8% year-on-year [60]. - The price of urea fluctuated between RMB 1,550 and RMB 1,800 per ton in the first half of 2020, influenced by domestic and international pandemic conditions and industrial demand [60].

Financial Performance - For the year ended December 31, 2019, the net cash outflow from operating activities after interest payments was approximately RMB 37.4 million, a decrease of about RMB 161 million compared to a net cash inflow of RMB 123.6 million in 2018[7]. - The loss attributable to shareholders for the year was approximately RMB 732 million, an increase of RMB 384 million compared to a loss of RMB 348 million in 2018[7]. - The basic loss per share for the year was approximately RMB 0.1598[7]. - The total sales revenue for the year was approximately RMB 1,964 million, a decrease of about 36.7% compared to 2018[7]. - The company recorded a revenue of approximately RMB 1,964,000,000 for the year ended December 31, 2019, a decrease of 36.7% compared to the previous year[28]. - The net loss attributable to shareholders increased to approximately RMB 732,000,000, compared to a loss of RMB 384,000,000 in the previous year[28]. - The company's sales cost was approximately RMB 1,958,000,000, a decrease of 31.9% from 2018, primarily due to a reduction in trade volume[29]. - The gross profit margin fell from approximately 7.2% in 2018 to 0.3% in 2019, attributed to declining product sales prices and rising natural gas prices[29]. - The distribution costs decreased by about 20.6% compared to the previous year, with a distribution cost to sales ratio of 1.35%, an increase of 0.27% from 2018[29]. Production and Sales - The sales volume of urea increased by 37% to 325,170 tons, with sales revenue of RMB 554 million, a 17% increase[7]. - The average price of urea in 2019 was RMB 1,842 per ton, down RMB 131 per ton from RMB 1,973 per ton in 2018[10]. - In the first half of 2020, the average daily production of urea is expected to exceed 160,000 tons, with production showing a stable upward trend[12]. - The company faced challenges due to significant price declines in products and rising natural gas raw material costs[9]. - The company anticipates that the urea market prices will rise during the spring planting season, followed by a gradual decline after June due to reduced agricultural demand[12]. Dividends and Reserves - The company did not recommend any final dividend for the year ended December 31, 2019, consistent with no dividends declared in 2018[9]. - The company does not recommend the payment of any final dividend for the year ended December 31, 2019, consistent with the previous year[66]. - The company's available distributable reserves as of December 31, 2019, were approximately RMB 243,056,000, indicating a healthy reserve position for potential future distributions[69]. Future Plans and Investments - The company plans to continue optimizing its sales model and increasing direct sales ratios to improve operational efficiency[9]. - The company plans to develop fine chemical industries, utilizing existing equipment to minimize investment and construction time, which will provide new profit growth points[22]. - A new materials factory project with a capacity of 20,000 tons per year is planned, which will enhance the company's product value and risk resistance[23]. - The company will actively seek cooperative funding to promote the approval, construction, and operation of new projects[20]. - The company is developing a 500,000 tons/year polyether polyol project, which is expected to have lower energy consumption and better environmental effects compared to similar projects in the industry[26]. Financial Health and Debt - As of December 31, 2019, the total borrowings and notes payable of the group amounted to approximately RMB 2,113,032,000[41]. - The capital-to-debt ratio as of December 31, 2019, was approximately 90%, compared to 78% as of December 31, 2018[42]. - As of December 31, 2019, the group had no significant contingent liabilities[43]. - The total net value of mortgaged assets as of December 31, 2019, was approximately RMB 1,538,018,000, an increase from RMB 1,130,436,000 in 2018[49]. - The group has a total of approximately RMB 30,116,000 in bank deposits as of December 31, 2019, up from RMB 24,339,000 in 2018[49]. Environmental and Social Responsibility - The company is committed to managing and monitoring environmental and social performance, ensuring compliance with applicable regulations[51]. - The total greenhouse gas emissions amounted to 1,660,607.70 tons of CO2 equivalent, with a density of 56.33 tons per square meter of total production area[158]. - The emissions of nitrogen oxides (NOx), sulfur oxides (SOx), and particulate matter (PM) were recorded at 95,346.09 kg, 474.65 kg, and 8.07 kg, respectively[157]. - The company adheres to various environmental regulations, including the Air Pollution Prevention and Control Law of China and the Environmental Protection Law of the People's Republic of China[155]. - The company has implemented three management systems: ISO 9001 for quality management, ISO 14001 for environmental management, and ISO 50001 for energy management[153]. Employee and Management - The number of employees as of December 31, 2019, was 696, a decrease from 725 in 2018[50]. - The total number of employees increased by 4% to 631, all of whom are full-time staff in China[181]. - The employee turnover rate for the reporting period was 10%, with 65 full-time employees from China leaving the company[191]. - The company has increased disease allowances and ensures compensation aligns with market levels to attract and retain talent[196]. - The company promotes equal opportunities in employment policies, with a slight increase of 2% in the proportion of female employees over the year[198]. Corporate Governance - The company has undergone a restructuring to prepare for its shares to be listed on the GEM of the Hong Kong Stock Exchange, which was completed in June 2003[63]. - The company has experienced changes in its board of directors, with several members resigning and new appointments being made, ensuring continuity in governance[73]. - The audit committee, established in June 2003, reviews the company's financial reporting procedures and internal control systems[107]. - The company has no management contracts related to significant parts of its business during the year[106]. - There are no competitive business interests held by the company's directors or management shareholders[104].

Financial Performance - For the six months ended June 30, 2019, the group reported an unaudited loss attributable to shareholders of approximately RMB 328.3 million, an increase of RMB 167.3 million compared to the same period last year[3]. - The group's unaudited revenue for the same period was approximately RMB 954 million, a decrease of about 52.1% year-on-year, primarily due to a reduction in sales trading volume[3]. - The unaudited basic loss per share for the six months ended June 30, 2019, was approximately RMB 7.64[4]. - The company experienced a pre-tax loss of RMB 341,433,000 for the six months ended June 30, 2019, compared to a pre-tax loss of RMB 175,131,000 for the same period in 2018, indicating a deterioration in financial performance[25]. - The cash generated from operating activities for the six months ended June 30, 2019, was RMB 24,127,000, a decrease from RMB 111,896,000 in the same period of 2018, reflecting challenges in cash flow management[25]. - Gross margin decreased from approximately 5.8% to 1.5% due to falling product prices[47]. - Sales costs were approximately RMB 939 million, a decrease of about 49.9% compared to the same period last year[47]. - Administrative expenses decreased by approximately 61.3% due to reduced operational costs during the winter gas supply suspension[47]. Assets and Liabilities - Total assets as of June 30, 2019, were RMB 3,367.7 million, compared to RMB 3,282.9 million as of December 31, 2018[8]. - Total liabilities as of June 30, 2019, were RMB 2,808.3 million, compared to RMB 2,697.7 million as of December 31, 2018[10]. - The company’s total liabilities as of June 30, 2019, included a net current liability of RMB 1,358,545,000, raising concerns about liquidity[18]. - As of June 30, 2019, the group's net current liabilities amounted to approximately RMB 1,358,545,000[68]. - The capital debt ratio as of June 30, 2019, was 79%, compared to 78% as of December 31, 2018[71]. Cash Flow - The group's unaudited cash generated from operating activities before tax was approximately RMB 24.1 million, a decrease of RMB 87.8 million compared to the same period last year[3]. - The net cash outflow from operating activities for the six months ended June 30, 2019, was RMB 30.7 million, compared to a net inflow of RMB 48.6 million in the same period last year[12]. - Cash and cash equivalents as of June 30, 2019, amounted to RMB 37.1 million, an increase from RMB 4.5 million at the beginning of the year[12]. Sales and Production - Total sales volume (excluding trading) reached approximately 471,127 tons, an increase of 32.8% compared to the same period last year[3]. - Urea sales contributed RMB 290,114,000, accounting for 30.4% of total revenue for the six months ended June 30, 2019, compared to RMB 268,330,000 and 13.5% in the previous year, showing strong growth in this segment[22]. - The company reported a significant increase in ammonia sales, generating RMB 304,059,000, which accounted for 31.9% of total revenue, up from RMB 166,446,000 and 8.3% in the previous year[22]. - In the first half of 2019, the total urea production in China was estimated at 26.21 million tons, an increase of approximately 1.43 million tons or 5.8% compared to the same period in 2018[54]. - The total methanol production in China for the first half of 2019 was 52 million tons, with an average operating rate increase of 3.49% year-on-year, representing a growth of 5.21%[56]. - The total synthetic ammonia production in the first half of 2019 was approximately 25.3 million tons, a decrease of about 8% year-on-year[61]. Corporate Governance and Compliance - The company has adopted a standard code for securities trading by directors, ensuring compliance with trading regulations[108]. - The Audit Committee was established on June 10, 2003, and is responsible for reviewing the financial reporting process and internal control systems of the company and its group[109]. - The Audit Committee consists of three independent non-executive directors as of the mid-term report date[109]. - The company has taken appropriate actions to comply with the corporate governance code since January 1, 2005[112]. Future Plans and Market Outlook - The company plans to issue convertible bonds worth HKD 987,000,000 to improve its financial position and has successfully negotiated the extension of bank loan repayments[18]. - The company plans to continue optimizing production efficiency by monitoring and adjusting production loads daily to ensure cost-effectiveness[64]. - The company aims to reduce operational costs and cash flow expenditures as part of its strategy to achieve an annual loss reduction target[64]. - The domestic urea market is expected to experience a rebound in prices due to environmental pollution control efforts leading up to the 70th anniversary of the founding of the People's Republic of China[54]. - The methanol market is anticipated to face challenges and opportunities in the second half of 2019, with new production capacity coming online[57]. Shareholder Information - Major shareholder Zheng Jianming holds 800,000,000 shares, representing 18.61% of the issued share capital as of June 30, 2019[102]. - Public shareholders hold 3,397,742,599 shares, accounting for 79.05% of the total equity as of June 30, 2019[90]. - The company’s board members and executives have disclosed their interests in the company, with significant holdings reported[99]. - Li Weiruo holds 410,392,000 shares, representing 9.55% of the issued share capital as of June 30, 2019[105].

Ko Yo Chemical (Group) Limited 玖源化工 ( 集團 ) 有限公司 Annual Report 2O18 年報 (於開曼群島註冊成立之有限公司) (股份編號 : 00827) 2O18 玖源化工（集團）有限公司 2018年年報 | --- | --- | |--------------------------|-------| | | | | 目 錄 | | | 公司資料 | 2 | | 摘要 | 3 | | 主席報告書 | 4 | | 業務回顧 | 10 | | 董事及高級管理層 | 14 | | 董事會報告書 | 17 | | 環境、社會及管治報告 | 27 | | 企業管治常規 | 40 | | 獨立核數師報告 | 46 | | 綜合損益及其他全面收益表 | 50 | | 綜合財務狀況表 | 51 | | 綜合權益變動表 | 53 | | 綜合現金流量表 | 54 | | 綜合財務報表附註 | 56 | | 財務概要 | 108 | 玖源化工（集團）有限公司 2018年年報 公司資料 | --- | --- | --- | |------------------------- ...