Group 1 - The company, Jiuyuan Group (00827.HK), expects to record a loss of approximately RMB 186 million for the six months ending June 30, 2025, which is an increase in loss of about RMB 56.1 million compared to a loss of approximately RMB 129.7 million in the same period last year [1] - The primary reason for the increased loss is the decline in product market prices, which has led to a decrease in the company's gross profit margin [1]

Core Viewpoint - Jiuyuan Group (00827) anticipates a loss of approximately RMB 185.8 million for the six months ending June 30, 2025, which represents an increase in loss of about RMB 56.1 million compared to a loss of approximately RMB 129.7 million in the same period last year [1] Summary by Relevant Categories Financial Performance - The expected loss of RMB 185.8 million marks an increase from the previous year's loss of RMB 129.7 million, indicating a worsening financial situation for the company [1] - The increase in loss is primarily attributed to a decline in product market prices, which has led to a decrease in the company's gross profit margin [1]

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的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不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的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 承董事局命 玖源化工(集團)有限公司 主席 盈利警告公告 玖源化工(集團)有限公司(「本公司」，連同其附屬公司稱為「本集團」)之董事局(「董事局」) 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部項下的內幕消息條文(如上市規則所定義者)作出本公佈。 董事局謹此知會本公司股東及有意投資者，根據本集團對截至二零二五年六月三十日止六個 月的未經審核綜合管理賬目的初步評估，預期於截至二零二五年六月三十日止六個月，本集 團將錄得虧損約人民幣 185,800,000 元，相對於去年同期之虧損約人民幣 129,700,000 元增加虧 損約人民幣 56,100,000 元。本集團虧損增加的主要原因是產品市場價格下跌，導致本集團產 品的毛利率下降。 本公告中的信 ...

Core Viewpoint - The company, Jiu Yuan Group (00827.HK), is scheduled to hold a board meeting on August 29, 2025, to discuss its interim results and other related matters [1] Group 1 - The board meeting will review and approve the unaudited interim results for the six months ending June 30, 2025 [1] - The company will consider the distribution of an interim dividend, if applicable [1] - The board will discuss and approve the suspension of share transfer registration, if necessary [1] - Approval will be sought for the publication of interim results on the Hong Kong Stock Exchange and the distribution of the interim report to shareholders [1] - Any other matters will also be addressed during the meeting [1]

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） 董事會會議通告 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的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不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的任何損失承擔任何責任。 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」）之董事會（「董 事會」）謹此公佈，本公司之董事將於二零二五年八月二十九日上午十時正於香港銅鑼灣告 士打道255-257號信和廣場31樓02室舉行董事會會議，以商討下列事項： 承董事局命 玖源化工(集團)有限公司 主席 湯國強 香港，二零二五年八月八日 於本公佈日期，董事會包括四位執行董事，為湯國強先生、史建敏先生、張偉華先生及范超 先生，及三位獨立非執行董事徐從才先生、樂宜仁先生及魯藝女士。 - 1 - 1. 省覽及通過本集團截至二零二五年六月三十日止六個月的綜合未經審核中期業績（「半 年業績」）； 2. 考慮派發中期股息（如有）； 3. 考慮及批准暫停辦理股份過戶登記手續（ ...

Financial Performance - For the fiscal year ending December 31, 2024, the net cash inflow from operating activities before changes in working capital and payment of income tax and interest was approximately RMB 15 million, a decrease of about 95% compared to RMB 306 million in 2023[8]. - The loss attributable to shareholders for the fiscal year ending December 31, 2024, was approximately RMB 505 million, an increase in loss of about RMB 353 million compared to a loss of RMB 152 million in 2023[8]. - The total sales revenue for the fiscal year ending December 31, 2024, was approximately RMB 2.6 billion, a decrease of about 10.5% compared to the previous year[8]. - The group recorded a revenue of approximately RMB 2,600,000,000, a decrease of 10.5% compared to the previous year, primarily due to lower product prices[27]. - The loss attributable to shareholders was approximately RMB 505,000,000, an increase in loss of about RMB 353,000,000 compared to the previous year, with a basic loss per share of RMB 0.084[27]. - The group's gross margin decreased from approximately 10.9% in 2023 to 1.3% in 2024, mainly due to a decline in product prices[29]. - Sales costs were approximately RMB 2,566,000,000, a slight decrease of 0.9% compared to 2023, attributed to a slight reduction in sales volume[28]. - Distribution costs decreased by approximately 39.9% compared to the previous year, with a distribution cost to sales ratio of 0.97%, down 0.48% from 2023[29]. - Administrative expenses increased by approximately 43.6% to about RMB 214,200,000, primarily due to the non-normal production of certain factories[29]. Production and Sales - Urea sales amounted to RMB 742 million with a sales volume of 387,165 tons, reflecting a decrease of 16.4% in sales revenue and 3.0% in sales volume compared to 2023[7]. - The methanol segment reported sales of RMB 806 million with a sales volume of 389,569 tons, showing an increase of 3.3% in sales revenue and 3.8% in sales volume compared to the previous year[7]. - The average daily production of urea in 2024 was 179,400 tons, which is 12,000 tons higher than the average in 2023[18]. - The average market price of methanol in the southwestern region was approximately 2,398.41 CNY per ton in 2024[15]. - The average price of urea in the southwestern region was about 2,132 CNY per ton in 2024[18]. Operational Efficiency and Cost Control - The company has made significant improvements in operational efficiency and cost control, achieving historical best levels in production and energy consumption in 2024[11]. - The company plans to implement various strategies to reduce operational costs and improve efficiency, including optimizing sales models and enhancing employee training[24]. - The company has implemented a production organization model that defers major repairs to enhance economic benefits, achieving over 200 days of continuous safe production in its urea facility[12]. Environmental and Social Responsibility - The group continues to invest resources in managing and monitoring environmental and social performance, focusing on sustainable development through technological advancements[48]. - The group emphasizes strict compliance with applicable regulations and actively engages stakeholders on key issues such as energy, emissions, and waste management[48]. - The group achieved ISO 14001, ISO 50001, and ISO 9001 certifications, demonstrating a commitment to high standards in environmental management, energy management, and quality management[101]. - The group aims to reduce waste and emissions as part of its sustainability goals, integrating these objectives into core business operations[104]. - The company has implemented an environmental management system to ensure compliance with national and local environmental laws and regulations[122]. - The company recognizes significant financial impacts from climate-related risks, including increased supply chain costs and reduced production efficiency due to extreme heat events[155]. - The company aims to achieve carbon neutrality in Hong Kong by 2050 and aligns its operations in China with the 3060 target, reaching peak carbon emissions by 2030 and carbon neutrality by 2060[159]. Employee and Workforce Management - The group employed 773 employees as of December 31, 2024, a decrease from 843 employees in 2023, reflecting a reduction of approximately 8.3%[46]. - The number of production department employees decreased to 631 from 702 in 2023, a decline of about 10.1%[46]. - The employee turnover rate during the reporting period was 14.9%, with 97 full-time employees leaving the company[167]. - The average training hours per employee during the reporting period was 40.7 hours, with 100% of employees receiving training[182]. - The company has implemented a compensation and benefits management system to attract and retain top talent, ensuring salaries are aligned with market levels[170]. Governance and Compliance - The board consists of six members, with three executive directors and three independent non-executive directors[199]. - The independent non-executive directors account for over one-third of the board members as of December 31, 2024[199]. - The board is responsible for the strategic development of the group, while management is responsible for daily operations and strategic planning execution[200]. - All committees, including the audit, remuneration, and nomination committees, have clearly defined responsibilities and must report their decisions to the board for approval[200]. Future Projects and Investments - The Jiangsu Blue Planet Environmental Technology Co., Ltd. project, with a capacity of 400,000 tons/year for epoxy propane, is expected to enter trial production in Q2 2025, with an anticipated annual sales increase of around RMB 4 billion[14]. - The company plans to transform from basic chemicals to fine chemicals to enhance competitiveness and is pushing for the stable production of DMF & NMP projects[25]. - In 2025, new methanol projects are expected to add around 7.4 million tons of capacity, leading to an increase in supply[15]. - In 2025, new urea production capacity is projected to be approximately 5.14 million tons, while demand remains largely unchanged[18]. - In 2025, NMP supply is expected to increase by 150,000 tons, leading to severe oversupply conditions[22].

Financial Performance - For the fiscal year ending December 31, 2024, the sales revenue was approximately RMB 2,600,000,000, a decrease of about 10.5% compared to 2023[2]. - The loss attributable to shareholders was approximately RMB 505,000,000, an increase in loss of about RMB 353,000,000 compared to a loss of RMB 152,000,000 in 2023[3]. - The basic loss per share was approximately RMB 0.084[3]. - The gross profit for the year was RMB 34,179,000, down from RMB 316,197,000 in 2023[6]. - The group reported a total comprehensive expense of approximately RMB 552,742,000 for the year ended December 31, 2024, indicating a significant loss[13]. - The group reported a net current liability of approximately RMB 3,253 million as of December 31, 2024, compared to RMB 2,860 million in 2023[101]. - The total revenue for the year ended December 31, 2024, was RMB 2,599,733 thousand, a decrease from RMB 2,904,857 thousand in 2023, representing a decline of approximately 10.5%[106]. - The revenue from urea decreased to RMB 742,182 thousand in 2024 from RMB 888,393 thousand in 2023, a decline of about 16.4%[106]. - The revenue from ammonia decreased to RMB 849,248 thousand in 2024 from RMB 1,058,030 thousand in 2023, a decline of approximately 19.7%[106]. - The company reported a pre-tax loss of RMB (534,294,000) in 2024, compared to RMB (107,652,000) in 2023[118]. Cash Flow and Liquidity - The net cash inflow from operating activities before changes in working capital and payment of income tax and interest was approximately RMB 15,000,000, a decrease of about 95% from RMB 306,000,000 in 2023[3]. - The net cash outflow from operating activities was approximately RMB 103,335,000 for the same period, highlighting cash flow challenges[13]. - The group maintains sufficient cash and cash equivalents to ensure operational liquidity, with financial liabilities totaling RMB 4,872,379 thousand in 2024 compared to RMB 5,149,578 thousand in 2023[103]. - The company has a plan to improve cash flow through successful refinancing and obtaining additional bank loans, which is critical for its sustainability[15]. - Cash and cash equivalents decreased from RMB 16,951,000 thousand in 2023 to RMB 6,444,000 thousand in 2024, a decline of approximately 62%[158]. Assets and Liabilities - The total assets decreased to RMB 5,413,807,000 in 2024 from RMB 6,266,330,000 in 2023[7]. - The total liabilities decreased to RMB 5,054,222,000 in 2024 from RMB 5,354,515,000 in 2023[8]. - The group’s total equity as of December 31, 2024, was reported at RMB (117,350,000)[166]. - The total equity decreased from RMB 911,815 thousand in 2023 to RMB 359,585 thousand in 2024, a decline of approximately 60%[162]. - The total borrowings increased slightly from RMB 2,793,478 thousand in 2023 to RMB 2,794,946 thousand in 2024[162]. Expenses and Costs - The company reported a significant increase in administrative expenses to RMB 214,182,000 from RMB 149,103,000 in 2023[6]. - Financial expenses for 2024 amounted to RMB 323,377,000, an increase from RMB 238,925,000 in 2023[115]. - The total cost of sold inventory, including employee costs and depreciation, was approximately RMB 185,939,000 in 2024, down from RMB 197,763,000 in 2023[120]. Financial Management and Risk - The group has been actively negotiating with banks and financial institutions for loan extensions and refinancing, indicating efforts to improve liquidity[13]. - The group faces various financial risks, including market risk (foreign exchange, cash flow, and fair value interest rate risks), credit risk, and liquidity risk[89]. - Credit risk is managed by depositing most cash in state-owned and other reputable banks, with low default risk due to a stable repayment record from counterparties[94]. Accounting Policies and Estimates - The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and applicable disclosure requirements[18]. - The financial statements are based on historical cost convention and involve key assumptions and estimates that significantly impact the financial results[19]. - Key judgments made by the directors in applying accounting policies significantly affect the amounts recognized in the consolidated financial statements[83]. - Significant estimates and uncertainties may lead to substantial adjustments in asset and liability values in the next fiscal year[85]. Shareholder Information - The company does not recommend the payment of any final dividend for the fiscal year ending December 31, 2024[4]. - The total compensation for the top five highest-paid individuals in the group for 2024 is RMB 3,562,000, a decrease of 25.5% from RMB 4,786,000 in 2023[123]. - The weighted average number of ordinary shares used to calculate basic and diluted loss per share remains constant at 6,028,043 shares for both 2024 and 2023[128]. Investments and Projects - The group is investing in a new production line and has secured significant financing through loans[101]. - The development of new projects is expected to further improve the group's liquidity and profitability, as stated in the chairman's report[17].

Financial Performance - For the six months ended June 30, 2024, the group reported an unaudited loss attributable to shareholders of approximately RMB 129.7 million, an increase in loss of about RMB 26.9 million compared to the same period last year[1]. - The group's unaudited revenue for the same period was approximately RMB 1,430 million, representing a slight increase of about 1.9% year-on-year, primarily due to increased sales of N-Methyl-2-pyrrolidone and N,N-Dimethylformamide[2]. - The unaudited basic loss per share for the six months ended June 30, 2024, was approximately RMB 2.15, compared to RMB 1.71 for the same period last year[3]. - The company reported a pre-tax loss of RMB 115,847,000 for the six months ended June 30, 2024, compared to a loss of RMB 97,820,000 in the same period of 2023[15]. - The net cash generated from operating activities after tax was RMB 113,343,000, down from RMB 266,458,000 in the prior year[15]. - The net loss attributable to shareholders was approximately RMB 129.7 million, an increase of RMB 26.9 million compared to a loss of RMB 102.8 million in the previous year, primarily due to a decrease in gross margin[25]. Sales and Production - The total sales volume (excluding trading) reached approximately 539,000 tons, an increase of about 3.5% compared to the same period last year[2]. - Urea sales contributed RMB 355,449,000, accounting for 24.9% of total revenue, down from 34.8% in the previous year[13]. - Ammonia sales increased to RMB 431,285,000, representing 30.2% of total revenue, compared to 26.2% in the prior year[13]. - The gross margin decreased from approximately 8.8% to 5.5%, mainly due to rising natural gas prices, with sales costs amounting to approximately RMB 1,350 million, an increase of about 5.5% year-on-year[25]. - The Guang'an Jiuyuan factory achieved record production and energy consumption levels, contributing an estimated additional revenue of over RMB 20 million through operational innovations[27]. Cash Flow and Liquidity - The net cash inflow from operating activities before interest paid was approximately RMB 113.3 million, a decrease from RMB 266.5 million in the previous year[6]. - The group reported a net cash and cash equivalents balance of RMB 52.8 million as of June 30, 2024, down from RMB 270.3 million at the beginning of the year[7]. - The total borrowings as of June 30, 2024, amounted to RMB 2,409,439 thousand, a decrease from RMB 2,793,478 thousand as of December 31, 2023[23]. - The capital debt ratio as of June 30, 2024, was 77%, up from 75% at the end of 2023, indicating a higher level of financial leverage[53]. - As of June 30, 2024, the company reported current liabilities of approximately RMB 2,990,178,000, with cash and bank deposits amounting to about RMB 52,754,000[50]. Dividends and Shareholder Information - The group did not recommend any interim dividend for the six months ended June 30, 2024[2]. - The company did not recommend any dividend payment for the six months ended June 30, 2024[18]. - As of June 30, 2024, there are 171,492,259 unexercised stock options under the stock option plan, representing approximately 2.84% of the company's shares[63]. - The company has a total of 8,702,675 unexercised convertible securities as of June 30, 2024[65]. - The diluted loss per share for the year ending June 30, 2024, is calculated based on RMB 0.88, assuming all unexercised convertible securities are converted[66]. Market Outlook - For the second half of 2024, DMF prices are expected to continue weak operations with limited upward space due to increasing supply and demand conflicts[32]. - The NMP market is anticipated to maintain low-level fluctuations in the second half of 2024, with supply pressures and insufficient demand expectations[34]. - Methanol prices are projected to show a trend of first declining, then rising, and finally falling again in the second half of 2024[37]. - The ammonia market is likely to experience a price trend of first declining, then rising, and finally declining again due to various market factors[41]. - The overall demand for urea is expected to decrease significantly in the second half of 2024 due to reduced agricultural needs and strict export policies[45]. Operational Efficiency and Cost Control - The company has maintained a focus on cost control, with administrative expenses decreasing by approximately 11.8% compared to the previous year[25]. - The company aims to reduce operational costs through technical upgrades and improved production efficiency, achieving historical lows in comprehensive energy consumption at certain plants[46]. - The company plans to optimize the production costs of the DMF and NMP projects, which were successfully launched in May 2023, to significantly enhance product competitiveness[28]. - The company has implemented a production organization model of "production before the year-end, major repairs after the year" at the Dazhou Jiuyuan factory, contributing significantly to economic benefits[29]. Employee and Management - The company is committed to enhancing employee training and management capabilities to improve overall operational efficiency[47]. - As of June 30, 2024, the group has a total of 821 employees, a slight decrease from 823 employees in 2023[57]. Risk Management - The group faces foreign exchange risk due to certain loans denominated in foreign currencies, primarily Hong Kong dollars, and management monitors this risk[59]. - The company has taken measures to improve liquidity and financial conditions, including negotiating loan renewals or restructurings with banks[72]. Investments and Acquisitions - No significant acquisitions or disposals were reported in the six months ending June 30, 2024[55]. - The group has no other significant investment plans apart from those previously disclosed[57].

Financial Performance - For the six months ended June 30, 2024, the unaudited net loss attributable to shareholders was approximately RMB 129.7 million, an increase in loss of about RMB 26.9 million compared to the same period last year[1]. - The unaudited revenue for the six months ended June 30, 2024, was approximately RMB 1,430 million, representing a slight increase of about 1.9% compared to the same period last year, primarily due to increased sales of N-Methylpyrrolidone and N,N-Dimethylformamide[1]. - The company reported a significant increase in interest income to RMB 7,403 thousand from RMB 338 thousand in the same period last year[2]. - For the six months ended June 30, 2024, the company reported a net loss of RMB 135,073,000 compared to a net loss of RMB 102,831,000 for the same period in 2023, representing an increase in loss of approximately 31.3%[14]. - The total revenue for the six months ended June 30, 2024, was RMB 1,429,617,000, a slight increase from RMB 1,403,423,000 in the same period of 2023, reflecting a growth of about 1.9%[10]. - The company experienced a pre-tax loss of RMB 115,847,000 for the six months ended June 30, 2024, compared to a pre-tax loss of RMB 97,820,000 in the same period of 2023, indicating a deterioration in operational performance[11]. - The basic and diluted loss per share for the six months ended June 30, 2024, was RMB 0.0215, compared to RMB 0.0170 for the same period in 2023, reflecting a worsening loss per share[14]. Cash Flow and Liquidity - The unaudited operating cash inflow before changes in working capital and payment of income tax and interest was approximately RMB 62.9 million, an increase of about RMB 46.1 million compared to approximately RMB 16.8 million in the same period last year[1]. - The unaudited net cash inflow from operating activities was RMB 77,508 thousand for the six months ended June 30, 2024, compared to RMB 231,241 thousand in the same period last year[5]. - Cash generated from operating activities for the six months ended June 30, 2024, was RMB 113,343,000, a significant decrease from RMB 266,458,000 in the same period of 2023, highlighting cash flow challenges[11]. - The company reported a net increase in current liabilities amounting to RMB 2,990,178,000 as of June 30, 2024, indicating potential liquidity concerns[8]. - The group has current liabilities amounting to approximately RMB 2,990,178,000[44]. - The group's cash and bank balances as of June 30, 2024, are approximately RMB 52,754,000, with no unused bank credit[46]. - The company has taken multiple measures to improve liquidity and financial condition, including restructuring loans with banks[66]. Operational Highlights - The total sales volume (excluding trading) reached approximately 539,000 tons, an increase of about 3.5% compared to the same period last year[1]. - The company plans to continue focusing on the production and sales of chemical products and fertilizers in mainland China, which remains its primary market[7]. - The company continues to optimize its operational processes and improve economic efficiency, with a focus on enhancing core competitiveness through standardized work practices[24]. - Guang'an Jiuyuan Factory resumed production of the methanol-ammonia joint production unit on January 20, achieving historical best levels in both output and energy consumption in 2023, with an expected annual revenue increase of over RMB 20 million[26]. - The 100,000 tons/year DMF and NMP projects at Guang'an Jiuyuan Electronic Materials Factory, which started production in May 2023, are undergoing optimization to significantly reduce production costs and enhance product competitiveness[27]. - Dazhou Jiuyuan Factory plans to resume production of ammonia and urea units on March 26, 2024, following a major overhaul, with expected output and energy consumption at historical best levels in 2023[28]. - Jiangsu Blue Planet's 400,000 tons/year propylene oxide project is nearing completion and is expected to enter trial production in Q4 2024, potentially generating an annual sales increase of approximately RMB 4 billion[29]. Market Trends - The national DMF production capacity is projected to reach 1.8 million tons in 2024, a 7.14% increase from 2023, with a production increase of 10.11% in the first half of 2024 compared to the same period in 2023[30]. - The average monthly operating rate for DMF in the first half of 2024 was 45.83%, a decrease of 24.02% compared to the same period in 2023, indicating a significant supply-demand imbalance[30]. - NMP production capacity is expected to grow by approximately 11% in 2024, with market prices remaining under pressure and low trading activity due to weak demand from the new energy vehicle sector[33]. - Domestic methanol production reached 41.38 million tons in the first half of 2024, an increase of 11.26% year-on-year, with an average operating rate of 82.31%, up 6.54% from the previous year[35]. - In the first half of 2024, domestic synthetic ammonia production reached approximately 30 million tons, an increase of 13% year-on-year, with an average industry operating rate of 72.5%, up 7.5% from last year[37]. - The synthetic ammonia market is projected to see an increase in production capacity by 5.51 million tons from July to December 2024, which may put pressure on supply[38]. - The urea market is expected to experience a downward shift in trading focus in the second half of 2024 due to weak supply and demand dynamics, despite an anticipated increase of 4 million tons in production capacity[41]. Corporate Governance and Compliance - The Audit Committee was established on June 10, 2003, and is responsible for reviewing the financial reporting process and internal control systems[68]. - The company has complied with the corporate governance code since January 1, 2005[69]. - The company has adopted a standard code of conduct for directors regarding securities trading, ensuring compliance with trading regulations[67]. - There are no known interests in competitive businesses held by directors or management during the review period[65]. - The company has not disclosed any significant shareholder interests beyond those already reported[63]. Employee and Shareholder Information - As of June 30, 2024, the group had a total of 821 employees, a slight decrease from 823 in 2023[52]. - The group has 819 employees stationed in China and 2 in Hong Kong as of June 30, 2024[52]. - The total beneficial ownership of shares and related securities by director Tang Guoqiang is 7,869,800,000, representing 130.55% of the issued share capital[62]. - Director Shi Jianmin holds a total of 370,000,000 shares and related securities, which is 6.14% of the issued share capital[62]. - Director Zhang Weihua has beneficial ownership of 500,000,000 shares, accounting for 8.29% of the issued share capital[62].

Financial Performance - In 2023, the group's gross profit margin decreased from approximately 24.7% in 2022 to 10.9% in 2023 due to falling product prices and rising raw material costs[7]. - As of December 31, 2023, the group's total borrowings, convertible bonds, and notes payable amounted to approximately RMB 3.69 billion[12]. - The group anticipates continued weak performance in the DMF market in 2024, with an additional 300,000 tons of new capacity expected to come online[1]. - The overall demand in the downstream lithium battery sector is expected to remain generally weak, maintaining low operational levels in the industry[1]. - The top five customers accounted for approximately 34.3% of the group's total revenue, with the largest customer contributing about 13.8%[82]. - The group reported a positive operating cash flow for 2023, indicating that management should continue its actions and measures[81]. Operational Efficiency - The group plans to reduce non-scheduled downtime to historical lows through internal reforms and technological upgrades, aiming to improve operational efficiency[4]. - The group is exploring the feasibility of extending maintenance intervals from annually to biennially to reduce costs and improve output[6]. - The group has implemented performance assessments and compensation reforms to enhance team creativity and execution[5]. - The group is focused on real-time monitoring of changes in the fertilizer and chemical industry to navigate challenges and pursue opportunities[4]. - The group has prioritized production and equipment management to optimize production processes and improve overall product quality[102]. Environmental Management - The group has successfully obtained ISO certifications in environmental management, energy management, and quality management, demonstrating its commitment to high standards[102]. - The group aims to reduce waste and emissions as part of its sustainability goals, which are integrated into its business strategy[123]. - The group has implemented ISO9001:2015, ISO14001:2015, and ISO50001:2018 certifications in 2023, reflecting its commitment to quality and environmental management[124]. - The group has established a comprehensive environmental management system (EMS) and most operations are ISO 14001 certified, ensuring compliance with international environmental management standards[175]. - The group has implemented a wastewater reuse strategy, aiming to maximize the reuse of treated wastewater in its operations[166]. Sustainability Goals - The company aims to reduce total carbon emissions by 115.55% over a ten-year period, reflecting a strong commitment to sustainability[142]. - The group has set a target to reduce water consumption by 50,000 cubic meters annually, achieving a total reduction of 1,080,562 cubic meters from 2021 to 2023, which is 216% of the 10-year reduction target[181]. - The group has achieved 115.55% progress towards its 10-year greenhouse gas emission reduction target, with current emissions at 146,717.31 tons of CO2 equivalent[168]. - The company has made significant progress in water conservation, with a project expected to save approximately 443,500 cubic meters of water annually, reducing water usage by 508,082 cubic meters compared to 2022[194]. - The company has installed new equipment to improve energy efficiency and reduce pollution, alongside ongoing renovations to further minimize environmental impact[199]. Compliance and Governance - The company ensures compliance with all relevant product quality laws and regulations, with no reported serious violations during the reporting period[69]. - The company maintains strict regulations on employee discipline and professional conduct to prevent potential bribery and fraud[50]. - The company has established a dedicated whistleblower hotline to allow stakeholders to report any misconduct anonymously[50]. - The audit committee has reviewed the group's financial reporting procedures and internal control systems, ensuring compliance with accounting principles[95]. - The audit committee consists of three independent non-executive directors, ensuring oversight of the group's financial reporting[79]. Community Engagement - The company actively participated in community projects and volunteer services, contributing resources such as RMB 4,277.5 for firefighter support and 10 tons of urea for donation[54]. - The group has received multiple awards for its contributions to environmental protection and corporate social responsibility during the reporting period[124]. Employee Engagement and Training - A total of 327 employees, representing approximately 58.9% of the workforce, participated in anti-corruption training, averaging 3.65 hours per employee[51]. - The company has not exercised any stock options during the fiscal year ending December 31, 2023[32]. - The company has 171,492,259 unissued share options as of December 31, 2023, representing approximately 2.84% of the company's shares[67].