Financial Performance - For the year ended December 31, 2023, the sales revenue was approximately RMB 2,905,000,000, a decrease of about 9.4% compared to 2022[2]. - The loss attributable to shareholders was approximately RMB 152,000,000, a decrease of RMB 354,000,000 compared to a profit of RMB 202,000,000 in 2022[2]. - The company reported a net loss of approximately RMB 154,615,000 for the year ended December 31, 2023[14]. - The basic loss per share for the year was approximately RMB 0.0253[2]. - Total revenue for the year ended December 31, 2023, was RMB 2,904,857 thousand, a decrease from RMB 3,205,226 thousand in 2022[117]. - The group recorded a net loss of RMB (107,652,000) in 2023 compared to a profit of RMB 355,824,000 in 2022[133]. - Basic loss per share for 2023 was RMB (152,341,000), compared to a profit of RMB 201,563,000 in 2022, representing a substantial decline in profitability[142]. Revenue Breakdown - The sales revenue and quantity for major products showed the following changes: Urea sales revenue decreased by 12.0% and sales quantity increased by 1.2%[3]. - Ammonia sales revenue decreased by 13.8% and sales quantity increased by 6.7%[3]. - Methanol sales revenue decreased by 14.5% and sales quantity decreased by 6.0%[3]. - The revenue from urea sales was RMB 888,393 thousand in 2023, down from RMB 1,009,200 thousand in 2022[117]. - The group's revenue from major customer A decreased to 13.81% in 2023 from 15.11% in 2022[124]. Assets and Liabilities - Total assets as of December 31, 2023, were RMB 6,266,330,000, an increase from RMB 5,845,522,000 in 2022[7]. - The total liabilities increased to RMB 5,354,515,000 in 2023, compared to RMB 4,785,396,000 in 2022, reflecting a growth of 11.9%[14]. - As of December 31, 2023, the company's net current liabilities amounted to approximately RMB 2,859,724,000[14]. - The total assets minus current liabilities decreased to RMB 1,985,741,000 in 2023 from RMB 2,492,369,000 in 2022, indicating a decline of 20.3%[14]. - The company's total debt amounted to RMB 3,685,589,000, an increase from RMB 3,127,908,000 in 2022, reflecting a rise in the debt-to-equity ratio to 75% from 70%[184]. Cash Flow and Operating Activities - The net cash inflow from operating activities before changes in working capital and payment of income tax and interest was approximately RMB 306,000,000, a decrease of about 62.8% from RMB 823,000,000 in 2022[2]. - The company generated a net operating cash inflow of approximately RMB 224,469,000 during the year[14]. - Cash and cash equivalents decreased from RMB 220,143,000 in 2022 to RMB 16,951,000 in 2023, a decline of approximately 92.3%[179]. - The company maintained sufficient cash and cash equivalents to ensure operational liquidity through various financing sources[111]. Equity and Dividends - The total equity attributable to the company's owners was RMB 908,102,000, a decrease from RMB 1,059,039,000 in 2022[7]. - The company does not recommend the payment of any final dividend for the year ended December 31, 2023[3]. - The total equity as of December 31, 2023, was RMB 387,533,000, a decrease from RMB 538,470,000 in 2022[190]. Costs and Expenses - The cost of goods sold increased to RMB 2,588,660,000 in 2023 from RMB 2,411,956,000 in 2022[133]. - Employee costs, including salaries and bonuses, rose to RMB 104,206,000 in 2023 from RMB 90,663,000 in 2022[133]. - Financial expenses decreased slightly to RMB 238,925,000 in 2023 from RMB 244,903,000 in 2022[127]. - The income tax expense for 2023 was RMB 46,963,000, significantly lower than RMB 154,780,000 in 2022[130]. Financial Instruments and Risks - The group faces various financial risks, including market risk, credit risk, and liquidity risk, with a focus on minimizing potential negative impacts on financial performance[98]. - The group has minimal foreign exchange risk as most transactions are denominated in RMB, with no current hedging policies in place[99]. - The group manages credit risk by depositing cash in reputable banks and assessing the credit quality of trade receivables[103]. - The company's financial assets have significantly increased credit risk during the reporting period, particularly when debtors are overdue by more than 30 days[104]. Accounting Policies and Estimates - The group adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2023, with no significant impact on the financial statements for the current and prior years[17]. - The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and applicable disclosure requirements[18]. - The group applies significant judgments in the application of accounting policies that have a substantial impact on the amounts recognized in the consolidated financial statements[91]. - The group assesses the carrying amounts of tangible and intangible assets at each reporting period to determine if there are indications of impairment losses[86]. Subsidiaries and Ownership - The company has 100% ownership in several subsidiaries, including Dazhou Jiuyuan Chemical Co., Ltd. with a registered capital of RMB 420 million and Sichuan Chengyuan Chemical Co., Ltd. with RMB 8 million[162]. - The company has pledged 100% equity of several subsidiaries, including Dazhou Jiuyuan Chemical and Sichuan Chengyuan, as collateral for loans[168]. - The company operates in various sectors, including chemical production and sales, with subsidiaries located in mainland China and Hong Kong[162]. Inventory and Receivables - The total inventory value as of December 31, 2023, is RMB 216.1 million, a decrease from RMB 241.3 million in 2022[166]. - Accounts receivable decreased from RMB 1,047,417,000 in 2022 to RMB 1,027,975,000 in 2023, a reduction of approximately 1.5%[169]. - The company reported no change in the allowance for trade receivables losses, maintaining a loss provision of 0% for both years[174]. Capital Management and Financing - The company maintained a capital management strategy focused on ensuring sustainable operations and optimizing capital structure to reduce costs[183]. - The total amount of convertible bonds was RMB 892,111,000 in 2023, compared to RMB 810,623,000 in 2022[184]. - The company issued convertible bonds with a principal amount of HKD 832,000,000 (approximately RMB 665,600,000) at an annual interest rate of 7%[200].

Financial Performance - The group reported a net loss attributable to shareholders of approximately RMB 102.8 million for the six months ended June 30, 2023, a decrease from a profit of RMB 329.2 million in the same period last year[2]. - Revenue for the six months ended June 30, 2023, was approximately RMB 1.403 billion, representing a decrease of about 16.0% compared to RMB 1.671 billion in the previous year, primarily due to a reduction in product prices[2]. - The total sales volume (excluding trading) reached approximately 521,359 tons, a decrease of 8.0% compared to the same period last year[2]. - Basic loss per share for the six months ended June 30, 2023, was approximately RMB 1.71, compared to earnings of RMB 3.96 per share in the same period last year[2]. - The group experienced a net cash outflow from operating activities of RMB 77.7 million for the six months ended June 30, 2023, compared to a net inflow of RMB 210 million in the previous year[9]. - For the six months ended June 30, 2023, the company reported a net loss of RMB 102,831,000 compared to a net profit of RMB 226,438,000 for the same period in 2022[26]. - The company experienced a pre-tax loss of RMB 97,820,000 for the six months ended June 30, 2023, compared to a pre-tax profit of RMB 313,657,000 in the same period of 2022[20]. - Operating cash flow for the six months ended June 30, 2023, was RMB 271,855,000, a decrease of 63.7% from RMB 746,903,000 in the same period of 2022[20]. Dividends and Shareholder Returns - The group did not recommend the payment of any interim dividend for the six months ended June 30, 2023[3]. - The company did not recommend any dividend payment for the six months ended June 30, 2023[28]. Assets and Liabilities - Total assets as of June 30, 2023, were approximately RMB 5.741 billion, a slight decrease from RMB 5.846 billion as of December 31, 2022[6]. - Total liabilities as of June 30, 2023, were approximately RMB 4.785 billion, remaining relatively stable compared to RMB 4.785 billion as of December 31, 2022[8]. - As of June 30, 2023, the company had net current liabilities of RMB 2,710,553,000[14]. - The group’s cash and bank balances as of June 30, 2023, were approximately RMB 270,297,000, with no available bank credit facilities[84]. - The capital-to-debt ratio as of June 30, 2023, was 73%, compared to 70% as of December 31, 2022[85]. - The group had no significant contingent liabilities as of June 30, 2023[86]. - The group has approximately RMB 2,020,734,000 in unpaid capital commitments as of June 30, 2023[83]. Operational Highlights - Urea sales accounted for 34.8% of total revenue in the first half of 2023, generating RMB 488,642,000, while ammonia sales contributed 26.2% with RMB 368,300,000[18]. - The Guang'an Jiuyuan factory successfully completed the first trial run of the carbon monoxide project on May 13, 2023, producing qualified products[46]. - The newly constructed DMF and NMP projects at the Guang'an Jiuyuan Electronic Materials Factory achieved successful trial runs on May 22, 2023, with an expected annual additional sales of RMB 3 billion[47]. - Dazhou Jiuyuan plant implemented a new production model, achieving record production levels and energy efficiency post-maintenance, contributing significantly to the group's economic benefits[49]. - Jiangsu Blue Planet project, acquired in September 2022, is nearing completion with expected annual sales of approximately 4 billion after trial production in Q3 2023[50]. Market Conditions - NMP market prices showed a downward trend in H1 2023, with no new production capacity added, and demand from the power battery sector decreased by 9.32%[51][52]. - In H2 2023, NMP supply is expected to increase by 400,000 to 500,000 tons, leading to significant pressure on prices, which are anticipated to remain weak[53]. - DMF production capacity increased by 300,000 tons in H1 2023, but the overall market showed a downward trend due to weak demand and low operating rates[54][57]. - The domestic methanol market saw a production decrease of 0.63% in H1 2023, with prices dropping below 2,000 yuan per ton, the lowest in nearly two years[61]. - Methanol imports increased by 6.64% in H1 2023, while downstream consumption decreased by 2.72%, indicating a supply-demand imbalance[61]. - In H2 2023, methanol prices are expected to rise temporarily due to seasonal demand, but overall price increases will be limited due to macroeconomic pressures[62][64]. - The epoxy propylene market experienced fluctuations, with prices expected to decline in H2 2023 due to increased supply and weak demand during the traditional off-season[58][60]. - The overall market outlook suggests a potential for price recovery in the second half of 2023, despite initial downward pressure due to increased supply[72]. Strategic Initiatives - The company plans to optimize its sales model to increase the proportion of direct sales customers and maximize sales profits[76]. - The company aims to reduce operational costs through various measures, including performance assessments and cost-saving initiatives[76]. - The company is pushing for the trial production and optimization of new projects such as DMF&NMP and propylene oxide, aiming to create new sales and profit growth points[79]. - The company will continue to monitor and adjust production organization and operational loads to ensure optimal operational efficiency[76]. Shareholder Information - The major shareholders include Mr. Zhang Weihua, who holds 1,520,000,000 shares, representing 25.22% of the issued share capital[106]. - As of June 30, 2023, the total equity interest of Mr. Tang Guoqiang is approximately 7,949,800,000 shares, which is 131.88% of the issued share capital[106]. - The company has not identified any individuals, other than directors or senior management, with significant shareholding interests that require disclosure under the Securities and Futures Ordinance[107]. Corporate Governance - The audit committee, established on June 10, 2003, is responsible for reviewing the financial reporting procedures and internal control systems of the company[114]. - The company has adopted a code of conduct for securities trading, ensuring compliance with trading regulations and standards[112]. - No shares were purchased, sold, or redeemed by the company or any of its subsidiaries during the review period[116]. - The company continues to engage with banks for loan renewal or restructuring to enhance its financial stability[111].

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分內容而產生或因依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） 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月 中 期 業 績 公 佈 摘 要 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月，未 經 審 核 本 集 團 股 東 應 佔 虧 損約為人民幣102,800,000元，較去年同期減少溢利人民幣329,200,000元。 截 至 二 零 二 三 年 六 月 三 十 日 止 六 個 月，本 集 團 未 經 審 核 之 營 運 資 金 變 動 及 支 付 利 得 稅 和 利 息 前 的 經 營 業 務 流 入 現 金 淨 額 約 為 人 民 幣 16,800,000元，較去年同期的人民幣532,800,000元減少人民幣516,000,000 ...

Environmental Impact and Sustainability Goals - The total greenhouse gas emissions from the group's operations amounted to 287,983.35 tons of CO2 equivalent, with a density of 9.48 tons per square meter of total production area and 0.23 tons per ton of chemical products produced[6]. - The group achieved a 10.3% reduction in total greenhouse gas emissions in 2022 compared to 2021, with a total reduction of 10,239 tons of greenhouse gases at the Guang'an factory[9]. - The group has set a target to reduce total carbon emissions by 19,300 tons of CO2 equivalent over the next 10 years, with annual reductions of 1,930 tons planned[11]. - The group aims to reduce total waste generation by 3% by 2023 compared to the 2022 baseline, as part of its sustainability commitment[16]. - The company is committed to using resources responsibly, with most operations certified under ISO 14001, and aims to reuse wastewater wherever possible[17]. - The company continues to invest resources in managing and monitoring environmental and social performance, focusing on sustainable development through technological advancements[92]. - The company is committed to strict compliance with applicable regulations and actively engages stakeholders on significant issues such as energy, emissions, and waste management[92]. - The company has achieved ISO certifications for environmental management (ISO 14001), energy management (ISO 50001), and quality management (ISO 9001)[176]. - The company has established an environmental management system to enhance its sustainable development performance[195]. - The company emphasizes the importance of stakeholder engagement in identifying key ESG issues through surveys and discussions[183]. Waste Management - The group produced 470.51 tons of hazardous waste during the reporting period, an increase of 98.7% compared to 236.82 tons in 2021, primarily due to the biennial replacement of chemical catalysts[14]. - Non-hazardous waste generation increased by 62.6% to 179.08 tons, attributed to increased production and workforce size[15]. - The total wastewater discharged during the reporting period was 226,413 cubic meters, with a density of 4.66 cubic meters per square meter of total production area[23]. - The company has implemented automatic samplers to monitor water quality, ensuring that all discharged wastewater meets the ammonia industry water pollutant discharge standards[25]. Financial Performance - The company's operating cash inflow before changes in working capital and payment of income tax and interest for the year ended December 31, 2022, was approximately RMB 823 million, a decrease of about 7.9% compared to RMB 894 million in 2021[37]. - The profit attributable to shareholders for the year ended December 31, 2022, was approximately RMB 202 million, a decrease of about 46.7% compared to RMB 379 million in 2021[37]. - The sales revenue for the year ended December 31, 2022, was approximately RMB 3,205 million, an increase of about 4.5% compared to the previous year[37]. - The sales cost increased to approximately RMB 2,412,000,000, reflecting a 7.0% rise due to higher raw material prices[70]. - The gross profit margin declined from approximately 26.5% in 2021 to 24.7% in 2022, attributed to rising raw material market prices[71]. - Distribution costs surged by approximately 71.6% compared to the previous year, with a distribution cost to sales ratio of 1.42%, an increase of 0.55% from 2021[71]. - Administrative expenses rose by approximately 29.2% to about RMB 149,600,000, mainly due to increased business activities and inflation[71]. - Other income decreased significantly from approximately RMB 140,300,000 in 2021 to about RMB 5,900,000 in 2022, primarily due to the sale of investment properties in the previous year[71]. Production and Sales - The total urea production in 2022 is estimated at 56.3 million tons, a year-on-year increase of 4.8%, with domestic urea capacity around 75.35 million tons, growing by 3.4% year-on-year[49]. - The average price of urea in 2022 was RMB 2,731 per ton, an increase of RMB 333 per ton compared to the average price of RMB 2,398 per ton in 2021[49]. - The sales volume of urea was 394,326 tons, with a sales revenue of RMB 1,009 million, reflecting a revenue increase of 4.9% but a volume decrease of 9.7%[37]. - The sales volume of methanol was 399,170 tons, with a sales revenue of RMB 912 million, showing a revenue decrease of 7.9% and a volume decrease of 12.2%[37]. - In 2022, methanol production in China is projected to be 68.41 million tons, a year-on-year increase of 1.36%, with domestic methanol capacity reaching approximately 100.91 million tons, up 4.1% year-on-year[51]. - The average price of methanol in 2022 was RMB 2,570 per ton, an increase of RMB 20 per ton compared to the average price of RMB 2,550 per ton in 2021[51]. - The company recorded a revenue of approximately RMB 3,205,000,000 for the fiscal year, representing an increase of 4.5% compared to the previous year, primarily driven by increased sales of urea and ammonia[69]. Operational Efficiency and Challenges - The company faced challenges such as tight natural gas supply and extreme weather, yet managed to maintain stable operations and achieve profitability[42]. - The company plans to reduce operational costs and improve efficiency through technical upgrades and management reforms[62]. - The company is focusing on improving its internal decision-making efficiency and enhancing employee training to boost overall productivity[64]. - The company emphasizes long-term production stability and has initiated measures to optimize production and equipment management[176]. - The company is expected to face ongoing impacts from "dual carbon" and "energy consumption dual control" policies in 2023, affecting the methanol market[55]. Corporate Governance and Management - The company has a strong management team with over 30 years of experience in various leadership roles, enhancing its operational capabilities[95][96][101]. - The company has a diverse board of directors with expertise in economics, finance, and management, contributing to strategic decision-making[97][99][100]. - The board of directors includes both executive and independent non-executive members, with specific terms for their service contracts[116]. - The audit committee consists of three independent non-executive directors, ensuring compliance with financial reporting and internal control systems[164]. Future Outlook - The outlook for 2023 indicates a potential weakening of urea prices due to increased supply and seasonal demand fluctuations[50]. - The company anticipates that the synthetic ammonia market in 2023 will experience a weak and fluctuating price pattern due to global economic recession expectations and geopolitical instability[61]. - New projects, including a 100,000-ton DMF project and a 400,000-ton epoxy propane project, are expected to begin trial production in Q2 2023[65]. - The company is working on a 1.2 million-ton nylon 66 project, with the first phase (600,000 tons/year of hexamethylenediamine) expected to start construction in Q4 2023[67].

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） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 公 佈 摘 要 — 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度，營 運 資 金 變 動 及 支 付 利 得 稅 和 利 息 前 的 經 營 業 務 流 入 現 金 淨 額 約 人 民 幣823,000,000元，較 二零二一年的經營業務流入現金淨額約人民幣894,000,000元減少約 7.9%。 — 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度，股 東 應 佔 溢 利 約 為 人 民 幣202,000,000元，較 二 零 二 一 年 溢 利 約 人 民 幣379,000,000元 減 少 溢 ...

Financial Measures - The company has taken measures to improve its financial situation, including the issuance of convertible bonds to alleviate financial pressure, completed on November 30, 2021 [4] - Proceeds from the convertible bonds will be allocated to the construction of multiple production lines, aiming to generate positive cash flow in the long term [5] - As of August 31, 2022, the company reached a settlement agreement with Dalian Bank to extend the repayment schedule for a loan with a remaining principal of RMB 69,600,000 [6] Auditor's Opinion - The auditor believes that the company's plans to improve financial conditions and cash flow can address the issues leading to the disclaimer of opinion [7] Liquidity and Cost Control - The company aims to continue taking proactive measures to enhance liquidity and control administrative and production costs [5]

Financial Performance - The group's unaudited revenue for the six months ended June 30, 2022, was approximately RMB 1,671,000,000, an increase of about 24.1% compared to the same period last year[2]. - The basic earnings per share for the six months ended June 30, 2022, was RMB 3.96, compared to RMB 2.81 for the same period last year[6]. - The group reported a net profit of RMB 226,432,000 for the six months ended June 30, 2022, an increase from RMB 153,999,000 in the previous year[6]. - The company reported a profit before tax of RMB 313,657,000 for the six months ended June 30, 2022, compared to RMB 159,261,000 for the same period in 2021, indicating a year-on-year increase of approximately 97%[26]. - Shareholders' profit attributable to the company reached approximately RMB 226,400,000, representing an increase of about RMB 72,400,000 or 47.0% from RMB 154,000,000 in the previous year[47]. Cash Flow and Liquidity - The net cash inflow from operating activities before tax and interest payments was approximately RMB 532,800,000, an increase of RMB 246,300,000 compared to RMB 286,500,000 in the same period last year[2]. - Operating cash flow before changes in working capital was RMB 532,751,000, significantly higher than RMB 286,512,000 in the previous year, reflecting improved cash generation capabilities[26]. - The net cash generated from operating activities after tax for the six months ended June 30, 2022, was RMB 659,678,000, compared to RMB 157,145,000 in the same period of 2021, marking a substantial increase[26]. - The cash and cash equivalents increased to RMB 571,626,000 as of June 30, 2022, from RMB 413,259,000 at the beginning of the year[14]. - The group reported cash and bank balances of approximately RMB 571,626,000 as of June 30, 2022, with no available bank credit facilities[85]. Assets and Liabilities - The total assets as of June 30, 2022, amounted to RMB 4,183,384,000, compared to RMB 4,037,708,000 as of December 31, 2021[8]. - The total liabilities as of June 30, 2022, were RMB 3,129,673,000, a decrease from RMB 3,214,120,000 as of December 31, 2021[9]. - As of June 30, 2022, the company had a net current liability of approximately RMB 1,005,831,000, with current assets including cash and bank deposits of about RMB 571,626,000[83]. - The capital debt ratio was 65% as of June 30, 2022, down from 72% as of December 31, 2021[86]. Sales and Production - The total sales volume (excluding trade) reached approximately 566,496 tons, a slight increase of 0.03% year-on-year[2]. - Urea sales contributed RMB 518,269,000, accounting for 31% of total revenue, while ammonia sales reached RMB 675,014,000, making up 40.4% of total revenue[23]. - The company's sales costs increased by approximately 9.4% to RMB 1,155,000,000, attributed to rising production costs[48]. - Distribution costs surged by approximately 88.8%, primarily due to increased transportation costs[48]. - The average monthly operating rate in the first half of 2022 was 73.85%, up by 0.18% year-on-year[57]. Market Conditions - The methanol market experienced fluctuations, with prices reaching a high of RMB 3,380 per ton before dropping to around RMB 2,600 per ton due to various external factors[54]. - The domestic methanol market is expected to show a trend of weakness followed by strength in the second half of 2022 due to improved supply-demand expectations[61]. - The synthetic ammonia market is projected to experience a trend of increase followed by decrease in the second half of 2022 due to seasonal demand fluctuations[67]. - The agricultural demand for urea is expected to be relatively weak in the second half of 2022, with a shift from weak to strong demand anticipated later in the year[74]. Operational Challenges and Strategies - The company faced challenges in natural gas supply during the heating season, impacting production capacity, but managed to maintain stable operations[51][53]. - The company plans to optimize existing operations and enhance management efficiency, focusing on cost reduction and increasing the proportion of direct sales customers[76]. - The company is focusing on internal reforms and innovations to navigate the challenges posed by the volatile fertilizer and chemical industry[76]. Future Projects and Developments - New projects include a 100,000-ton PBAT project expected to start production in Q4 2022, and a 300,000-ton/year dimethyl carbonate project that will complete all approval procedures within the year[80]. - The group has plans to establish three new production lines at its Dazhou, Guang'an, and Guang'an material factories, with the acquisition of the epoxy propane production line extended to September 30, 2022, for further testing[92]. Corporate Governance and Management - The audit committee has reviewed the financial reporting procedures and internal controls, ensuring compliance with accounting standards[123]. - The company has engaged in active negotiations with banks to restructure loans, indicating a proactive approach to financial management[120]. - The board is confident that the financial statements for the coming year will reflect improved conditions, potentially eliminating any audit opinion disclaimers[120].

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].