Financial Performance - Revenue for the year ended December 31, 2022, was RMB 311,947,000, a decrease of 31.6% compared to RMB 456,128,000 in 2021[2] - The company reported an operating loss of RMB (83,984,000) for 2022, compared to an operating profit of RMB 37,366,000 in 2021[6] - Adjusted EBITDA for the year was RMB (34,672,000), down from RMB 109,330,000 in the previous year[2] - The net loss attributable to shareholders for the year was RMB (102,466,000), compared to a profit of RMB 46,954,000 in 2021[6] - Basic and diluted loss per share was RMB (3.69) for 2022, compared to earnings of RMB 1.84 in 2021[6] - The company reported a total comprehensive loss of RMB (138,978,000) for the year, compared to a comprehensive income of RMB 72,381,000 in 2021[9] - The total financial expenses for the year were RMB 37,641,000, an increase from RMB 35,655,000 in the previous year[44] - The company reported a net loss of RMB 102,466,000 for the year, with a loss of RMB 111,744,000 from the water segment and a profit of RMB 61,591,000 from the beer segment[36] - The group reported a net loss of RMB 102 million for 2022, compared to a net profit of RMB 47 million in 2021[86] Revenue Breakdown - Total revenue for the water segment was RMB 147,571,000, while the beer segment generated RMB 308,557,000, leading to a total revenue of RMB 456,128,000[37] - The company recognized revenue from water product sales of RMB 58,761,000 and beer product sales of RMB 245,982,000 for the year ended December 31, 2022[41] - The water business segment generated revenue of RMB 66 million, down 55.6% year-on-year, primarily due to significant sales declines caused by the COVID-19 pandemic[75] - The beer business segment's sales volume was 364,717 hectoliters, a decrease of 13.6% from 422,217 hectoliters in 2021, with revenue falling by 20.1% to RMB 246.44 million[76] Assets and Liabilities - Total assets as of December 31, 2022, were RMB 4,140,133,000, slightly down from RMB 4,148,946,000 in 2021[2] - Total assets for the water segment were RMB 4,260,928,000, while the beer segment had total assets of RMB 2,415,426,000, resulting in total assets of RMB 6,676,354,000[34] - Total liabilities for the water segment were RMB 1,593,782,000, and for the beer segment, they were RMB 399,806,000, leading to total liabilities of RMB 1,993,588,000[34] - As of December 31, 2022, the company's debt ratio was 21.12%, a slight decrease from 21.29% on December 31, 2021[99] Cash Flow and Financial Position - Cash and cash equivalents at the end of 2022 were RMB 58,147,000, compared to RMB 53,818,000 at the end of 2021[11] - The company’s receivables from third-party trade decreased to RMB 190,499,000 in 2022 from RMB 254,657,000 in 2021[53] - The company reported a financial asset expected credit loss provision of RMB 88,617,000 across all segments[36] - The company’s financial assets expected credit loss provision for trade receivables was RMB 86,643,000, significantly higher than RMB 31,488,000 in 2021[48] Operational Highlights - The company faced significant challenges in 2022 due to the COVID-19 pandemic, particularly in the Tibet region, impacting sales of packaged drinking water and beer products[72] - The company successfully completed two equity financing rounds in 2022 and early 2023, providing strong support for business operations amid pandemic-related financial pressures[73] - The company aims to enhance customer experience and optimize channel construction to reach more consumers with its quality products in Tibet[72] - The company plans to enhance the "5100" premium mineral water brand and strengthen partnerships with domestic and international hotel brands, airlines, and cinema chains[112] Corporate Governance and Compliance - The external auditor, Guowei CPA, has been reappointed as the company's auditor effective from the conclusion of the 2022 Annual General Meeting until the conclusion of the next Annual General Meeting[117] - The financial figures in the performance announcement for the year ended December 31, 2022, have been verified to be consistent with the audited consolidated financial statements[119] - The company has complied with the corporate governance code, with some deviations noted regarding the attendance of independent non-executive directors at shareholder meetings[120] - The Audit Committee has reviewed the annual performance for the year ended December 31, 2022[121]

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 183,847,000, a decrease of 17.7% compared to RMB 223,336,000 in 2021[14] - Profit attributable to owners of the Company for the period was RMB 39,729,000, down 31.0% from RMB 57,583,000 in the previous year[14] - Basic earnings per share decreased by 82.6% to 0.31 RMB cents from 1.78 RMB cents in 2021[14] - In the first half of 2022, the total revenue of the Group amounted to RMB184 million, representing a decrease of 17.7% compared to the first half of 2021[22] - Revenue from the water business segment was RMB30 million, a decrease of 44.3% compared to the first half of 2021, primarily due to the impact of COVID-19 on key sales channels[23] - The beer business segment saw a sales volume of 215,181 hectoliters, a decrease of 4.0% year-over-year, with revenue of RMB153.794 million, down 9.2% from the previous year[26] - The overall gross profit margin of the Group was 34.0%, down 5.7 percentage points from the first half of 2021, with the water business segment's gross profit margin at 11.6%, down 25.4 percentage points[28] - Gross profit for the first half of 2022 was RMB 62,510,000, a decline of 29.5% compared to RMB 88,647,000 in 2021[78] - Profit for the half year was RMB8 million, which decreased by RMB37 million compared to RMB45 million in the first half of 2021[36] Assets and Liabilities - Total assets as of June 30, 2022, were RMB 4,170,242,000, slightly up from RMB 4,148,946,000 at the end of 2021[14] - Total non-current assets decreased from RMB 2,631,413,000 as of December 31, 2021, to RMB 2,582,728,000 as of June 30, 2022, a decline of approximately 1.85%[84] - Current assets increased from RMB 1,517,533,000 as of December 31, 2021, to RMB 1,587,514,000 as of June 30, 2022, an increase of approximately 4.6%[84] - Total current liabilities rose from RMB 928,523,000 as of December 31, 2021, to RMB 1,023,750,000 as of June 30, 2022, an increase of approximately 10.2%[84] - Total liabilities were RMB 1,352,813,000, compared to RMB 1,317,514,000 at the end of 2021, indicating an increase of 2.7%[144] - The Group's gearing ratio increased to 23.41% as of June 30, 2022, compared to 21.29% as of December 31, 2021[46] Cash Flow - Cash generated from operations decreased to RMB 48,453,000 in H1 2022 from RMB 91,117,000 in H1 2021, representing a decline of 46.8%[92] - Net cash flows generated from operating activities were RMB 40,229,000 in H1 2022, down from RMB 92,734,000 in H1 2021, a decrease of 56.6%[92] - Cash and cash equivalents decreased from RMB 53,818,000 as of December 31, 2021, to RMB 38,979,000 as of June 30, 2022, a decline of approximately 27.5%[84] - The company reported a net decrease in cash and cash equivalents of RMB 6,328,000 in H1 2022 compared to a decrease of RMB 12,860,000 in H1 2021[95] Strategic Initiatives - The Group aims to build a premium brand with Tibetan characteristics and maintain stringent quality control[11] - The Company is committed to becoming a world-class premium beverage manufacturer[11] - The Group plans to strengthen strategic cooperation with Sinopec and PetroChina to leverage quality water sources and production advantages[67] - The Group aims to enhance sales and logistics cooperation with key platforms like JD.com to accelerate product development in e-commerce channels[67] - The Group will seek to establish more strategic cooperation in emerging areas such as community consumption to diversify its sales model[67] Challenges and Risks - The management believes that despite the pandemic's impact, the Group can cope with challenges and achieve new development by consolidating resources[19] - The beer business's sales and development fell short of expected growth targets due to a decline in tourist numbers entering Tibet[19] - The impact of COVID-19 and climate change may negatively affect the Group's business results for the second half of 2022[72] - The Group's logistics and supply chain disruptions have made timely product supply very difficult, affecting overall sales performance[19] Employee and Administrative Costs - The Group's total number of employees decreased to 371 as of June 30, 2022, from 399 as of June 30, 2021[40] - Administrative expenses increased by approximately 9.7% from RMB31 million in the first half of 2021 to RMB34 million in the first half of 2022, mainly due to increased product development costs for new beer products[33] - Employee benefit expenses remained relatively stable at RMB 28,557,000, a slight decrease of 0.8% from RMB 28,797,000 in 2021[157] Investments and Financial Instruments - The carrying amount of convertible bonds as of June 30, 2022, was RMB 291,877,000, with a fair value of RMB 302,871,000[123] - The company considers that the carrying amounts of financial assets and financial liabilities recorded at amortised cost approximate their fair values, except for the liability component of convertible bonds[119] - The Group's financial assets measured at fair value as of June 30, 2022, totaled RMB 2,000,000, consistent with the value reported on December 31, 2021[112] Taxation - Income tax expense decreased by RMB3 million to RMB6 million in the first half of 2022, primarily due to a decrease in profit[36] - Current income tax expense for the period was RMB 6,347,000, a decrease of 11.9% from RMB 7,209,000 in 2021[163] - Total income tax expense for the period was RMB 5,874,000, down 34.3% from RMB 9,020,000 in the same period of 2021[163]

Company Overview - Tibet Water Resources Ltd. is a leading manufacturer of high-end fast-consuming beverages in Tibet, with principal businesses in water and beer segments[7]. - The "Tibet 5100 Glacial Spring Mineral Water" is sourced from a unique glacial spring at an altitude of 5,100 meters, recognized as a quality mineral water source in China[8]. - The Group's beer segment, "Tibet Green Barley Beer," was acquired in 2013 and is brewed using high-quality highland barley and local pollution-free spring water[9]. - The company has developed diversified packaging for the 5100 series, including the Diamond Series and Blue Cap Series, enhancing product offerings[8]. - The Group's natural water brands "Zhuoma Spring" and "Gesang Spring" are available in convenience stores at Sinopec and PetroChina gas stations[8]. Financial Performance - For the year ended December 31, 2021, the revenue of Tibet Water Resources Ltd. amounted to RMB 456 million, representing a decrease of 7.5% compared to RMB 493 million in the previous year[32]. - Profit attributable to owners of the Company for the year amounted to RMB 47 million, representing an increase of 176.6% compared to RMB 17 million in the previous year[32]. - Revenue for 2021 was RMB 456 million, a decrease of 7.5% from RMB 493 million in 2020[51]. - Operating profit dropped to RMB 37 million, down 53.8% from RMB 81 million in the previous year[51]. - Adjusted EBITDA for 2021 was RMB 109 million, reflecting a decline of 32.3% compared to RMB 162 million in 2020[51]. - Gross profit margin decreased to 41.9%, down 1.7 percentage points from 43.6% in 2020[51]. - Total assets as of December 31, 2021, were RMB 4,149 million, a slight decrease of 0.1% from RMB 4,152 million in 2020[51]. - Equity attributable to owners of the Company rose to RMB 2,831 million, an increase of 4.0% from RMB 2,722 million in 2020[51]. Impact of COVID-19 - The COVID-19 pandemic significantly impacted the sales of the Group's water business segment, particularly in key market channels such as airlines and hotels, leading to a decrease in revenue[33]. - The sales volume and revenue of the beer business segment remained almost the same as the previous year due to a decline in the number of visitors to Tibet[39]. - The management believes that new consumption patterns arising from the pandemic will increase consumer demand for healthy and premium products, presenting new opportunities[40]. Strategic Initiatives - The company is committed to expanding its market presence and enhancing product innovation to meet consumer demands[10]. - The Group plans to strengthen partnerships with key partners to enhance brand influence and sales networks[45]. - The Group aims to diversify its sales model by establishing strategic cooperation in emerging areas such as community consumption[45]. - The Group will invest more resources in research and development of new products and channel development to enhance market exposure[48]. Corporate Governance - Corporate governance practices are outlined in the report, ensuring transparency and accountability in operations[4]. - The Board has established procedures to continuously identify, report, monitor, and manage significant risks that may affect the Group's performance[122]. - The company emphasizes the importance of high-quality corporate governance to achieve sustainable long-term success[194]. - The Board regularly reviews corporate governance practices to ensure compliance with the principles and code provisions set out in the Corporate Governance Code[194]. Market and Competitive Landscape - The Group is exposed to risks related to changes in consumer preferences for bottled water and beer, which could adversely affect business performance and market share[123]. - Increasing competition from domestic and foreign companies is expected to intensify, potentially impacting market share and profit margins[124]. - The Group's ability to compete relies on providing high-quality products and services at reasonable prices that align with consumer preferences[124]. Sustainability and Environmental Initiatives - The Group aims to minimize environmental impact through waste management procedures and adherence to low carbon emission principles[114]. - The company is committed to sustainability, with plans to reduce carbon emissions by 30% over the next five years through various green initiatives[166]. Future Outlook - The company has set a performance guidance for 2022, aiming for a revenue growth of 12% to 18%[166]. - The company is exploring potential acquisitions in the beverage sector to diversify its product offerings and enhance market competitiveness[166]. - The Group anticipates strong market demand for its beer business as the impact of the pandemic subsides[143].

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 223,336,000, representing a slight increase of 0.2% compared to RMB 222,986,000 in 2020[14]. - Adjusted EBITDA decreased by 17.0% to RMB 57,583,000 from RMB 69,369,000 in the previous year[14]. - Profit attributable to the owners of the Company fell by 17.0% to RMB 44,603,000, down from RMB 50,397,000 in 2020[14]. - Basic earnings per share decreased by 11.4% to 1.78 RMB cents, while diluted earnings per share decreased by 15.9% to 1.69 RMB cents[14]. - The profit for the period was RMB 45 million, a decrease of RMB 5 million compared to RMB 50 million in the first half of 2020[44]. - Total comprehensive income for the period was RMB 54,894,000, an increase of 22.5% compared to RMB 44,872,000 in 2020[90]. - The company reported a profit for the period of RMB 44,603,000 for the six months ended June 30, 2021, compared to RMB 50,397,000 in the same period of 2020, showing a decrease of 11%[99]. - Profit for the period was RMB 50,397,000 in 2021, compared to RMB 50,397,000 in 2020, showing no change year-over-year[162]. Revenue Breakdown - Revenue from the water business segment was RMB 54 million, a decrease of 35.3% compared to the first half of 2020, primarily due to the impact of the COVID-19 pandemic on key sales channels[24]. - The beer business segment generated revenue of RMB 169.4 million, reflecting a year-over-year increase of 22.3% from RMB 138.5 million in the first half of 2020[29]. - Total segment revenue for the six months ended June 30, 2021, was RMB 223,336,000, with the water business segment contributing RMB 53,912,000 and the beer business segment contributing RMB 169,424,000[145]. - Sales of water products decreased to RMB 50,531,000 in 2021 from RMB 79,037,000 in 2020, representing a decline of approximately 36.1%[162]. - Sales of beer products increased to RMB 164,554,000 in 2021 from RMB 138,482,000 in 2020, reflecting a growth of about 19%[162]. Cost and Expenses - The overall gross profit margin of the Group was 39.7%, a decrease of 5.9 percentage points compared to the first half of 2020[31]. - The gross profit margin for the water business segment was 37.0%, down 16.1 percentage points from the same period last year, mainly due to increased fixed costs and changes in customer structure[31]. - Selling and distribution costs decreased by 26.5% to RMB 29 million from RMB 39 million in the first half of 2020, attributed to reduced water sales and corresponding cost reductions[32]. - Administrative expenses decreased by 6.9% from RMB 33 million in the first half of 2020 to RMB 31 million in the first half of 2021, mainly due to lower staff expenses[32]. - The company reported a gross profit of RMB 101,716,000 for the six months ended June 30, 2021, compared to RMB 121,270,000 in 2020, indicating a decrease of approximately 16.1%[153]. - Raw materials and consumables used increased to RMB 99,812, up 38.5% from RMB 72,107 in 2020[179]. - Employee benefit expenses decreased to RMB 28,797, down 6.5% from RMB 30,806 in 2020[179]. - Advertising and marketing expenditure significantly decreased to RMB 3,248, down 75.3% from RMB 13,132 in 2020[179]. Assets and Liabilities - Total assets as of June 30, 2021, were RMB 5,735,052,000, with the water business segment holding RMB 3,983,797,000 and the beer business segment holding RMB 1,751,255,000[149]. - Total liabilities as of the same date were RMB 2,009,234,000, with the water business segment having RMB 1,525,576,000 and the beer business segment having RMB 483,658,000[149]. - As of June 30, 2021, investments accounted for using the equity method amounted to RMB 1,289 million, up from RMB 651 million at the end of 2020, primarily due to the acquisition of 31% equity interests in Tibet Shannan Yalaxiangbu Industrial Ltd.[44]. - As of June 30, 2021, net trade receivables amounted to RMB 208 million, down from RMB 283 million as of December 31, 2020, primarily due to a decrease in receivables from institutional clients and an increase in allowance for ECL of RMB 27 million[48]. - Total current liabilities decreased to RMB 883,170,000 from RMB 1,279,890,000, a reduction of 30.9%[94]. - Total non-current liabilities increased significantly to RMB 475,388,000 as of June 30, 2021, compared to RMB 149,513,000 as of December 31, 2020, representing a growth of 217%[97]. Cash Flow - Net cash flows generated from operating activities for the six months ended June 30, 2021, were RMB 92,734,000, a substantial increase from RMB 31,878,000 in the same period of 2020, reflecting a growth of 191%[103]. - Cash generated from operations reached RMB 91,117,000 in the first half of 2021, compared to RMB 45,370,000 in 2020, indicating an increase of 101%[103]. - The company reported a net cash flow used in investing activities of RMB 22,461,000 for the first half of 2021, a significant improvement from RMB 355,482,000 in the same period of 2020[103]. Strategic Initiatives - The Group aims to maintain stringent quality control to provide premium beverage products globally[11]. - The Group aims to strengthen its strategic position in Tibet's water industry by leveraging existing resources, marketing channels, and logistics networks[79]. - The Group will continue to invest in significant resources and strengthen strategic cooperation with Sinopec and PetroChina to utilize water resources effectively[79]. - The Group plans to enhance the brand image of "5100 Glacial Mineral Water" and combine it with existing key target channels including cinemas, hotels, and e-commerce[79]. - The Group will intensify cooperation with key platforms like JD.com to boost product development in e-commerce sales channels[79]. - The Group's strategic initiatives include expanding its service networks to cover more consumers and retail ends, diversifying sales models[79]. Financial Instruments and Reporting - The Group's financial statements are presented in Renminbi (RMB) and have been prepared in accordance with International Accounting Standard 34 (IAS 34) for interim financial reporting[109]. - The Group's financial assets are measured and recognized at fair value, with a fair value hierarchy established for reliable input classification[120]. - The financial statements for the six months ended June 30, 2021, are consistent with the accounting policies used in the annual financial statements for the year ended December 31, 2020[115]. - The Group has adopted amendments to IFRS standards effective from January 1, 2021, which have had no material impact on its financial positions and performance[115].

Company Overview - Tibet Water Resources Ltd. is a leading manufacturer of high-end fast-consuming beverages in Tibet, primarily focusing on water and beer segments[6]. - The Group's beer segment, "Tibet Green Barley Beer," was acquired in 2013 and is brewed using high-quality highland barley and local spring water[8]. - The water business segment covers both Mainland China and Hong Kong markets, with products available in convenience stores of Sinopec and PetroChina gas stations[7]. Product Recognition and Quality - The "Tibet 5100 Glacial Spring Mineral Water" has been recognized as a quality mineral water source in China and awarded the best mineral water at a global bottled water congress[7]. - The Group has developed diversified packaging for the 5100 series, including the Diamond Series and Blue Cap Series, enhancing product offerings[7]. - The company adheres to stringent quality control to provide healthy specialty products globally, aiming to be a world-class premium beverage manufacturer[9]. Financial Performance - The financial highlights and performance metrics for 2020 are detailed in the annual report, showcasing the Group's growth and market position[3]. - The Group's operating revenue for the year ended December 31, 2020, was RMB 493 million, a decrease of approximately 31.7% compared to RMB 721 million in the same period last year[28]. - Profit attributable to shareholders was RMB 16.97 million, a significant recovery from a loss of RMB 745 million in 2019[28]. - The Group's revenue for 2020 was RMB 493 million, a decrease of 31.7% compared to RMB 721 million in 2019[44]. - Operating profit for 2020 was RMB 81 million, down 39.0% from RMB 133 million in 2019[44]. - Adjusted EBITDA for 2020 was RMB 162 million, reflecting a decline of 29.2% from RMB 228 million in 2019[44]. - The gross profit margin decreased to 43.6% in 2020, down 12.4 percentage points from 56.0% in 2019[44]. Market Strategy and Future Outlook - Future outlook includes expanding product lines and enhancing market penetration in both domestic and international markets[9]. - The Group plans to leverage its logistics network and new retail sales model to enhance customer service coverage, integrating sales channels with Sinopec and PetroChina gas stations[33]. - The Group aims to develop new high-quality sales channels in 2021, focusing on e-commerce and gas station channels to reach more end consumers[34]. - The Group plans to expand its sales channels through e-commerce and gas station partnerships in 2021, targeting significant growth in the beer business[36]. - The Group remains confident in returning to robust growth in the long term despite the challenges posed by the COVID-19 pandemic[41]. Environmental and Social Responsibility - The Group emphasizes environmental protection and has established the "5100 Tibet Education Development Specialty Grant" to support local education in Tibet[35]. - The Group actively supports local Tibetan pastoral farmers and initiatives aimed at poverty alleviation to improve livelihoods in Tibet[35]. - The Group aims to minimize environmental impact through waste management procedures and adheres to low carbon emission principles[132]. - The Group has established a "water protection zone" of 60 square kilometers around its water source to maintain product quality and safety[131]. Challenges and Risks - The bottled water and beer industry in China is highly competitive, with increasing competition affecting market share and profit margins[146]. - The Group's reliance on a limited water source poses risks if the quality of the spring water is adversely affected[147]. - Financial risks include market risk, credit risk, and liquidity risk, with a focus on minimizing adverse effects on financial performance[154]. - Any macroeconomic changes in China could negatively impact consumer spending on beverages, affecting the Group's business[144]. Governance and Management - The company has a strong governance structure with experienced directors overseeing various committees[200]. - The management team has a diverse background in finance, regulatory affairs, and industry leadership, enhancing the company's strategic decision-making capabilities[200]. - The company is committed to maintaining high standards of corporate governance and risk management through its board structure[200].

Financial Performance - Revenue for the six months ended June 30, 2020, was RMB 222,986,000, a decrease of 46% compared to RMB 409,785,000 in 2019[16] - Profit attributable to the owners of the Company was RMB 50,397,000, down 66% from RMB 146,981,000 in the previous year[16] - Basic and diluted earnings per share decreased to 2.01 RMB cents, a decline of 66% from 5.87 RMB cents in 2019[16] - The Group's net profit decreased by RMB 97 million or 66% compared to the same period last year[24] - The profit for the half-year period decreased by RMB 97 million from RMB 147 million in the first half of 2019 to RMB 50 million in the first half of 2020[43] - Total comprehensive income for the half-year was RMB 44,872,000, down 69.0% from RMB 144,834,000 in 2019[112] - Gross profit for the half-year was RMB 101,716,000, a decline of 56.3% compared to RMB 232,373,000 in the previous year[110] - Operating profit fell to RMB 29,660,000, down 80.7% from RMB 153,668,000 in 2019[110] Revenue Breakdown - The revenue generated from the water business segment was RMB 83 million, reflecting a decrease of 68% compared to the first half of 2019[25] - Revenue from the "5100 Glacial Water" products and "Gesang Spring" products decreased by 60% and 79%, respectively, compared to the first half of 2019[25] - The beer business segment generated approximately RMB 139 million in revenue, representing a decrease of 10% compared to the first half of 2019[25] - Total segment revenue for the six months ended June 30, 2020, was RMB 222,986,000, with the water segment contributing RMB 83,349,000 and the beer segment contributing RMB 138,482,000[193] Sales Volume and Pricing - Sales volume for the period was 39,469 tonnes, representing a 29% decrease from 55,289 tonnes in 2019[16] - In the first half of 2020, the total sales volume of the Group's products was 39,469 tonnes, a decrease of 40% compared to 55,289 tonnes in the first half of 2019[28] - The average selling price of water products was RMB 3,920 per tonne, down 36% from RMB 6,094 per tonne in the first half of 2019[28] Assets and Liabilities - Total assets as of June 30, 2020, increased to RMB 4,320,401,000, reflecting a 1% growth from RMB 4,262,406,000 at the end of 2019[16] - Total liabilities increased to RMB 1,573,470,000, up from RMB 1,560,367,000 at the end of 2019[108] - As of June 30, 2020, net trade receivables amounted to RMB 315 million, an increase from RMB 259 million as of December 31, 2019[43] - The Group's cash and cash equivalents decreased by approximately RMB 303 million from RMB 453 million as of December 31, 2019, to RMB 150 million[48] Cost Management - Selling and distribution costs decreased by approximately 9% to approximately RMB 40 million from RMB 44 million in the first half of 2019[32] - Administrative expenses decreased by approximately 25% from RMB 44 million in the first half of 2019 to RMB 33 million in the first half of 2020[32] - The gross profit margin of the Group was 46%, a decrease of 11 percentage points compared to the first half of 2019[28] - The gross profit margin for the water business segment was 53%, down 8 percentage points from the first half of 2019[28] - The gross profit margin for the beer business segment decreased by 9 percentage points to 41% in the first half of 2020[28] Impairment and Provisions - Impairment loss on trade receivables increased from RMB 2 million in the first half of 2019 to RMB 10 million in the first half of 2020[33] - The Group recognized an additional provision for impairment loss of trade receivables of RMB 10 million in the first half of 2020, compared to RMB 2 million in the first half of 2019[43] - Net impairment losses on financial assets for the period were RMB 10,088,000, with the water segment reporting RMB 9,771,000 and the beer segment reporting RMB 317,000[193] Cash Flow and Financing - Cash inflows from operating activities were RMB 32 million, while cash outflows from investing activities were approximately RMB 355 million in the first half of 2020[48] - The company reported a net cash flow from operating activities of RMB 31,878,000 for the first half of 2020, a decrease of 87.3% compared to RMB 251,091,000 in the same period of 2019[117] - The company incurred net cash flows used in investing activities of RMB 355,482,000, which is a significant increase from RMB 160,424,000 in the previous year[117] - The Group's bank borrowings included RMB 290 million secured by a 35% equity interest in Tibet Tiandi Green Beverage Development Co., and RMB 100 million secured by factory buildings and land use rights[67] Strategic Initiatives - The Group is actively resuming production and sales, leveraging existing resource and logistics advantages[24] - The Group will continue to leverage existing advantages in resources, marketing channels, and logistics to strengthen its strategic position in Tibet's water industry[92] - The Group plans to intensify strategic cooperation with Sinopec and PetroChina to fully utilize the advantages of Highland Natural Water and Tibet Shannan Yalaxiangbu's water resources[92] - The Group aims to promote high-quality water from Tibet to numerous households through additional strategic cooperation[92] Governance and Compliance - The audit committee reviewed the accounting principles and practices adopted by the group for the interim results of the first half of 2020[103] - The company has complied with the Corporate Governance Code provisions for the first half of 2020, with one noted deviation regarding the independence of a director[103] - The company has adopted the Model Code for Securities Transactions by Directors, with all directors confirming compliance for the first half of 2020[103]

| --- | --- | |--------------------------------------------------------------------------------------------|-------| | | | | | | | TOPS | | | Tibet Water Resources Ltd. (Incorporated in the Cayman Islands with limited liability) | | | (於閑曼群島註冊成立的有限公司) Stock code 股份代號：1115 | | | | | | Annual Report 2019 | | | | | 2 0100 2100 TIBET TIBET a Read S one | --- | --- | --- | --- | --- | --- | |-------|-------|-------|--------------|-----------------------------------------------------------------|-------| | | | | ...

Financial Performance - Revenue for the first half of 2019 was RMB 409.8 million, a decrease of 8% compared to RMB 447.2 million in the first half of 2018[5] - Profit attributable to the owners of the Company was RMB 147.0 million, down 14% from RMB 170.6 million in the same period last year[6] - Total sales volume decreased to 55,289 tonnes, a decline of 7% from 59,181 tonnes in the first half of 2018[6] - Revenue from the water business segment was RMB 257 million, representing a 6% decrease compared to the first half of 2018[22] - Revenue from the beer business segment was RMB 153 million, a decrease of 12% compared to the same period last year[23] - Profit for the period decreased by 14% to RMB 147 million from RMB 171 million in the first half of 2018[54] - Gross profit decreased to RMB 232,373, down 8.26% from RMB 253,354 in the previous year[138] - Operating profit for the half-year was RMB 153,668, a decline of 13.45% from RMB 177,575 in 2018[138] - Earnings per share decreased to 5.87 RMB cents, down from 6.81 RMB cents in 2018, representing a decline of 13.82%[138] - Total comprehensive income for the half-year was RMB 144,834,000, a decline of 13.0% compared to RMB 166,393,000 in the previous year[33] Sales and Volume - Total sales volume in the first half of 2019 was 55,289 tonnes, a decrease of 6% compared to 59,181 tonnes in the same period of 2018[31] - Water product sales volume increased by 4% to 33,623 tonnes, while beer product sales volume decreased by 19% to 21,666 tonnes compared to the first half of 2018[31] - The average selling price decline impacted the revenue of the water business segment, particularly the "Gesang Spring" products, which saw a 25% revenue decrease[22] - The beer products' sales volume decreased by 19% due to strong competition in the limited market in Tibet[20] - Revenue from Highland Natural Water increased by 9% to RMB 275 million, with sales volume rising by 11% to 124,556 tonnes[47] Assets and Liabilities - Total assets increased by 9% to RMB 5.35 billion from RMB 4.91 billion as of June 30, 2019[9] - Equity attributable to owners of the Company rose by 4% to RMB 3.60 billion from RMB 3.46 billion[10] - As of June 30, 2019, net trade receivables increased to RMB396 million from RMB290 million as of December 31, 2018, primarily due to increased trade receivables from institutional clients and distributors[62] - As of June 30, 2019, cash and cash equivalents increased by RMB213 million to RMB490 million, mainly due to cash inflows from operating activities of RMB285 million[72] - As of June 30, 2019, inventories decreased to RMB53 million from RMB99 million as of December 31, 2018, mainly due to a decrease in the balance of raw materials[68] - Trade and notes payables increased to RMB252 million as of June 30, 2019, compared to RMB79 million as of December 31, 2018, due to procurement being mainly settled in the form of bills[76] - Total current liabilities rose to RMB 1,457,931, an increase of 23.93% from RMB 1,176,658 in the previous year[136] Costs and Expenses - Selling and distribution costs decreased by 17% to RMB 44 million, while administrative expenses increased by 13% to RMB 44 million[40] - Income tax expense increased by RMB 2 million to RMB 17 million, with an effective tax rate of 10% in the first half of 2019[53] - Finance costs increased by RMB 11 million to RMB 29 million, while finance income rose by RMB 12 million to RMB 24 million[48] Investments and Financing - The Group's total investment in Shanghai Maikaite Network Technology Co., Ltd. was RMB 5 million, accounted for as financial assets at fair value through profit or loss[90] - A bank loan of RMB 290 million was secured with a pledge of 35% of Tiandi Green's equity interests as of June 30, 2019[93] - The Group's convertible bonds with a par value of HKD 525,000,000 matured on June 24, 2019, with no bond holders exercising the conversion option[152] - By June 30, 2019, the Group had repaid principal of RMB 94,050,000, and by July 16, 2019, the remaining balance of RMB 382,277,000 was fully repaid, including principal of RMB 366,589,000 and interest of RMB 15,688,000[152] Corporate Governance - The Company has complied with the Code on Corporate Governance Practices during the first half of 2019, with no incidents of non-compliance noted[1] - The audit committee, consisting of three independent non-executive Directors, reviewed the accounting principles and practices adopted by the Group for the first half of 2019[1] - PricewaterhouseCoopers confirmed that nothing has come to their attention that causes them to believe that the interim financial information is not prepared in accordance with International Accounting Standard 34[130] Future Outlook and Strategy - The Group intends to further invest in Shannan Yalaxiangbu to stimulate the rapid development of Tibet's natural drinking water industry and improve its strategic position in the region[110] - The development goal of Tibet's natural drinking water industry is to increase production capacity to 5 million tonnes by 2020 and 10 million tonnes by 2025[115] - The Group will assess its production capacity periodically and consider increasing it to meet future development demands[103] - The Group's compound annual revenue growth rate is projected to be between 22.8% and 28.0% from 2019 to 2021, and between 7.3% and 22.2% from 2022 to 2026[165] Financial Risks - The Group's financial activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[172] - There have been no changes in the risk management policies since the year-end[173] - The interim financial information does not include all financial risk management disclosures required in the annual financial statements[173]

| --- | --- | |---------------------------------------------------------------------------------------------------------------------------|-------| | | | | | | | TOPS | | | Tibet Water Resources Ltd. (Incorporated in the Cayman Islands with limited liability) (於閑曼群島註册成立的有限公司) | | | Stock code 股份代號：1115 | | | | | | Annual Report 2018 年 報 | | | | | PREMIUM GLACIER MINERAL WATER IN THE MARKET 市場上的高端冰川礦泉水 CONTENTS 目錄 STAKEHOLDERS INFORMATION 權益人資料 Corporate Profile 2 公司簡介 Financial Calendar 4 財務日誌 GROUP INFORMA ...