Financial Performance - Revenue for the year ended December 31, 2022, was RMB 274,277,000, a decrease of 12.5% compared to RMB 313,506,000 in 2021[2] - Gross profit for the same period was RMB 35,523,000, down 59.9% from RMB 88,517,000 in the previous year[2] - The company reported a loss before tax of RMB 164,922,000, compared to a profit of RMB 11,531,000 in 2021[2] - The company recorded a net loss of approximately RMB 167 million, compared to a net profit of about RMB 9.2 million in the previous year[35] - Basic loss per share for the year ended December 31, 2022, was RMB 0.097, based on a weighted average of 1,710,160,978 shares[19] - The company’s basic and diluted loss per share for 2022 was RMB 9.767, compared to earnings of RMB 0.579 per share in 2021[2] Assets and Liabilities - Total assets as of December 31, 2022, amounted to RMB 662,841,000, an increase from RMB 308,212,000 in 2021[3] - Net assets increased to RMB 644,800,000 in 2022, compared to RMB 284,836,000 in the previous year[3] - The company’s cash and bank balances were RMB 354,724,000, up from RMB 135,794,000 in 2021[3] - The group’s trade receivables amounted to RMB 95,674,000 for the year ended December 31, 2022, up from RMB 68,215,000 in the previous year[25] - The group’s trade payables totaled RMB 94,422,000 as of December 31, 2022, compared to RMB 88,867,000 in the previous year[27] - Short-term borrowings amounted to RMB 91,000,000 as of December 31, 2022, consistent with the previous year’s figure of RMB 100,441,000[29] Revenue Breakdown - The graphene products division generated revenue of RMB 15,411,000, while the OEM division contributed RMB 187,363,000, and the photovoltaic products division accounted for RMB 70,658,000[8] - Revenue from graphene products increased by approximately RMB 97 million to about RMB 154 million, representing a growth of 172.1%[36] - Revenue from OEM business decreased by approximately RMB 74.3 million to about RMB 187.4 million, a decline of 28.4%[36] - Sales from photovoltaic products reached approximately RMB 706.8 million, a growth of 57.6% compared to RMB 448.4 million in the previous year[40] - The photovoltaic products business recorded revenue of approximately RMB 70.7 million in 2022, representing a growth of about 57.6% compared to 2021[52] Expenses - The company incurred administrative expenses of RMB 240,906,000, significantly higher than RMB 88,530,000 in 2021[2] - Research and development expenses rose significantly to RMB 52,370,000 in 2022, compared to RMB 18,873,000 in 2021, indicating a focus on innovation[17] - General and administrative expenses increased by approximately RMB 15.2 million or 172.1% to about RMB 240.9 million, primarily due to stock option expenses and increased R&D costs[42] Shareholder Activities - The company did not declare any dividends for the years ended December 31, 2022, and 2021[19] - The company has not proposed a final dividend for the year ended December 31, 2022[59] - The company completed a placement of 50,000,000 new shares at a price of HKD 10 per share, raising approximately HKD 497,850,000 in January 2022[32] - The net proceeds from the 2022 placement were approximately RMB 407.29 million, with expected unutilized proceeds to be used by December 31, 2023[51] - The company aims to strengthen its financial position and expand its shareholder base through the share subscription and placement activities[50] Future Plans and Developments - The company plans to continue growing its photovoltaic product business, anticipating higher contributions due to market shifts towards advanced technologies[40] - The company plans to establish a flexible production line in Q2 2023, with product sampling and debugging in mid-2023, and formal production and supply in the second half of 2023[53] - The company is focusing on the development of new flexible and lightweight components, with significant R&D and capital investment in 2022[52] - The company is in deep discussions with a leading European home product retail brand to launch new consumer-end component products in 2023[52] - The company has initiated cooperation with one of the largest RV retail companies in the U.S. to provide new flexible or lightweight components suitable for various application scenarios[52] Financial Management - The total other income and net gains for 2022 amounted to RMB 55,502,000, compared to RMB 32,486,000 in 2021, reflecting improved financial management[15] - The company experienced a significant foreign exchange gain of RMB 42,263,000 in 2022, contributing positively to its financial results[15] - The company is actively monitoring foreign exchange risks, primarily from revenues in USD and costs in RMB[46] Employee Information - As of December 31, 2022, the company had approximately 930 employees, an increase from 780 employees in the previous year, with total employee costs amounting to approximately RMB 218.15 million, up from RMB 78.35 million in 2021[47] - The company has adopted a new share option plan to incentivize directors and eligible employees[47] Audit and Compliance - The audit committee, composed of three independent non-executive directors, reviewed the annual performance for the year ended December 31, 2022[58]

Financial Performance - Revenue for the six months ended June 30, 2022, decreased by approximately RMB 27.7 million or 17.1% to approximately RMB 134.1 million compared to RMB 161.8 million in 2021[15]. - The Group recorded a net loss of approximately RMB 104.5 million, a significant increase from a net loss of approximately RMB 3.8 million in the previous period[16]. - The gross profit margin for the Group decreased to approximately 1.1% during the period, down from 27.4% in the same period of 2021[17]. - Revenue from the OEM business decreased significantly, contributing to the overall decline in revenue[15]. - Revenue from photovoltaic products surged to approximately RMB 31.8 million, nearly 60 times the revenue of RMB 0.5 million in the same period of 2021[22]. - The increase in net loss was primarily due to a reduction in gross profit of approximately RMB 42.8 million and an increase in share-based payment expenses of approximately RMB 74.1 million[17]. - The total comprehensive loss for the six months ended June 30, 2022, was RMB 104,477,000, compared to a loss of RMB 3,839,000 for the same period in 2021[98]. - The loss before tax for the period was RMB 102,687,000, compared to a loss of RMB 2,945,000 in the previous year[89]. Revenue Breakdown - Revenue from graphene-based products increased by 177.7% to RMB 9.2 million compared to RMB 3.3 million in the previous period[13]. - Revenue from the OEM business decreased by approximately RMB 64.5 million to approximately RMB 92.8 million during the period, a decline of 41.0% from RMB 157.3 million in 2021[20]. - Revenue from graphene-based products increased by approximately RMB 5.9 million to approximately RMB 9.2 million, representing a growth of 177.7% compared to RMB 3.3 million in 2021[18]. - Revenue from the PRC market was RMB 34,186,000, a substantial increase from RMB 3,761,000 in the previous year, showcasing strong growth in the domestic market[122]. Expenses and Costs - Selling and distribution expenses increased by 24.4% to approximately RMB 6.5 million, accounting for 4.9% of the Group's revenue[22]. - General and administrative expenses increased by approximately RMB 82.0 million or 203.7% to approximately RMB 122.3 million for the period, primarily due to an increase in share-based payments and research and development costs[23]. - Research and development costs increased by approximately RMB 10.4 million during the period[16]. - The cost of inventories sold was RMB 130,682,000, compared to RMB 117,767,000 in the previous year, indicating a rise in cost pressures[133]. Cash Flow and Liquidity - Net cash inflow from operating activities amounted to approximately RMB 0.9 million, a significant improvement from a net cash outflow of approximately RMB 38.5 million in the previous year[23]. - Cash and bank balances increased approximately 2.6 times to RMB 482.4 million as of June 30, 2022, compared to RMB 135.8 million as of December 31, 2021[23]. - The net increase in cash and cash equivalents for the six months ended June 30, 2022, was RMB 346,628,000, compared to RMB 162,634,000 in 2021, reflecting improved liquidity[99]. Share Capital and Equity - Shareholders' equity increased to RMB 665.6 million, up 154.1% from RMB 262.0 million[13]. - As of June 30, 2022, the total number of shares issued by the company was 1,711,959,608[55]. - The company issued a total of 50,000,000 shares at a placing price of HK$10 per share on January 14, 2022[23]. - The company completed a placing in January 2022, raising net proceeds of approximately HK$497,850,000 after expenses[164]. Employee and Compensation - The Group had approximately 940 employees as of June 30, 2022, with total staff costs amounting to approximately RMB 123.9 million, compared to RMB 38.9 million in the previous year[31]. - The company’s compensation policy is based on individual employee strengths, qualifications, and performance, reviewed regularly by the compensation committee[34]. - The total share-based payment recognized by the group for the period was RMB 77,822,000, compared to RMB 6,030,000 for the year ended December 31, 2021[192]. Investments and Future Plans - The Group expects to move into a completed new plant in the second half of 2022, which is anticipated to improve production progress for photovoltaic products[22]. - The Group plans to invest in iEnergy Power Pty Ltd to enter the household solar power market in Australia after obtaining necessary approvals[49]. - A strategic investment cooperation agreement was signed with the People's Government of Nan'an Municipality for the large-scale mass production of a 20-gigawatt second-generation heterojunction project[50]. - The Group aims to construct an integrated supply chain connecting Cast-mono wafers, solar cells/modules, and the household power generation market by the end of 2022[50]. Corporate Governance - The company did not recommend the payment of any interim dividend for the period, consistent with the previous year where no dividend was paid[78]. - The company has complied with the Corporate Governance Code throughout the period, with specific deviations noted regarding the roles of the Chairman and CEO being held by the same individual[79][80]. - The audit committee, comprising three independent non-executive Directors, has reviewed the unaudited condensed consolidated interim financial statements for the period[86][87]. Segment Information - The Group's operating segments include Boree branded products, Graphene-based products, OEM, and Photovoltaic products, with performance evaluated based on adjusted results before tax[111]. - The Photovoltaic Products segment manufactures and sells Cast-mono wafers and Cast-mono HJT solar cells and modules, contributing to the Group's revenue[111]. - The Group's focus on technology licensing services in the Photovoltaic Products segment indicates a strategic move towards innovation and market expansion[111].

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 134,099 thousand, a decrease of 17.2% compared to RMB 161,825 thousand for the same period in 2021[2] - Gross profit for the same period was RMB 1,503 thousand, down 96.6% from RMB 44,337 thousand in 2021[2] - The company reported a loss before tax of RMB 102,687 thousand, compared to a loss of RMB 2,945 thousand in the prior year, indicating a substantial increase in losses[2] - Basic and diluted loss per share was RMB 0.061, compared to RMB 0.002 for the same period in 2021[2] - The company reported a pre-tax loss of RMB 102.687 million for the period, with significant contributions from unallocated expenses totaling RMB 116.541 million[13] - The company recorded a net loss of approximately RMB 104.5 million, compared to a net loss of RMB 3.8 million in the same period last year[40] Revenue Breakdown - Total revenue for the period ending June 30, 2022, was RMB 134.099 million, with sales from graphene products contributing RMB 9.196 million and photovoltaic products contributing RMB 31.752 million[13] - Revenue from the United States for the six months ended June 30, 2022, was RMB 92,744 thousand, down from RMB 153,418 thousand in 2021, indicating a decrease of about 39.5%[18] - OEM business revenue fell by approximately RMB 64.5 million to about RMB 92.8 million, compared to RMB 157.3 million in the previous year[42] - Revenue from graphene products increased by approximately RMB 5.9 million to about RMB 9.2 million, driven by the successful design and development of customized air purification devices[42] - Revenue from photovoltaic products surged to approximately RMB 31.8 million, nearly 60 times the revenue of RMB 0.5 million in the same period last year[42] Assets and Liabilities - Non-current assets totaled RMB 166,050 thousand as of June 30, 2022, an increase from RMB 160,877 thousand at the end of 2021[3] - Current assets decreased to RMB 519,918 thousand from RMB 147,335 thousand at the end of 2021, indicating a significant increase in liquidity[3] - Total liabilities increased to RMB 701,824 thousand from RMB 415,809 thousand, reflecting a rise in financial obligations[3] - The total assets as of June 30, 2022, were RMB 867,874 thousand, compared to RMB 576,686 thousand as of December 31, 2021, indicating an increase of approximately 50.5%[19] - The total liabilities as of June 30, 2022, were RMB 202,294 thousand, up from 291,850 thousand as of December 31, 2021, reflecting a decrease of about 30.6%[19] Operational Highlights - The company’s main business segments include the production and sale of slippers, sandals, and casual shoes, as well as graphene-based products and photovoltaic products[12] - The company is focused on expanding its market presence through the development of new technologies, including graphene-based materials for air purification and solar energy applications[12] - The company plans to explore opportunities for applying graphene materials beyond footwear products, indicating future product development[31] - The company plans to move into a newly constructed factory in the second half of 2022, which is expected to enhance production capacity[42] - The company plans to complete the first phase of the new factory in Xuzhou, which is expected to significantly increase production capacity in the second half of the year to meet global demand for silicon wafers[56] Research and Development - Research and development expenses for the six months ended June 30, 2022, amounted to RMB 17,450 thousand, compared to RMB 7,006 thousand in the same period of 2021, showing an increase of approximately 148.9%[25] - The company is actively involved in research and development to enhance its product offerings and improve operational efficiency[12] Corporate Governance and Compliance - The company has maintained good corporate governance practices and complies with the corporate governance code[57] - The company’s financial statements are prepared in accordance with International Financial Reporting Standards, ensuring compliance with global accounting standards[8] Share Capital and Financing - The company completed a placement of new shares, raising RMB 404,186 thousand during the reporting period[6] - The total issued and paid-up share capital increased to 1,711,959,608 shares as of June 30, 2022[37] - The company has secured bank loans of RMB 91 million, with interest rates ranging from 3.90% to 4.44%[35] - The net proceeds from the share subscription and placement amounted to approximately RMB 67,242,000 and RMB 191,280,000 respectively, aimed at strengthening the company's financial position[50] Employee and Operational Costs - Total employee costs for the period amounted to approximately RMB 123,879,000, up from RMB 38,892,000 in the previous year, reflecting an increase in workforce to about 940 employees[49] - General and administrative expenses rose by 203.7% to approximately RMB 122,300,000, primarily due to stock-based compensation and increased R&D costs[44] - Sales and distribution expenses increased by 24.4% to approximately RMB 6,500,000, accounting for 4.9% of total revenue[43] Future Outlook - The company expects OEM business revenue to increase in the second half of the year compared to the first half of 2022[55] - The unutilized net proceeds from various projects are expected to be used by June 30, 2023, and December 31, 2022, for specific purposes[54] - The company does not recommend the distribution of any interim dividend for the period[56]

Financial Performance - The Group's revenue increased by approximately RMB201.6 million or 180.2% to approximately RMB313.5 million in 2021[12] - Gross profit for the Group increased substantially to approximately RMB88.5 million, which is approximately 5 times the gross profit of 2020[12] - The Group turned from a net loss of approximately RMB108.8 million in 2020 to a net profit of approximately RMB9.2 million in 2021[12] - The gross profit for the year rose to approximately RMB88.5 million, which is about five times the gross profit of 2020, with a gross profit margin increasing to approximately 28.2% from 16.1% in 2020[18] - The turnaround from a net loss of approximately RMB108.8 million in 2020 to a net profit of approximately RMB9.2 million in 2021 was primarily due to an increase in gross profit and a decrease in impairment losses[21] - The Group recorded a net profit of approximately RMB 9.2 million, a turnaround from a net loss of approximately RMB 108.8 million in the previous year, primarily due to an increase in gross profit of approximately RMB 70.5 million and a decrease in impairment of intangible assets by approximately RMB 64.8 million[22] Production Capacity and Expansion - The full production capacity of the Cast-mono wafers production base reached approximately 300 million pieces per year[13] - The Group's Cast-mono wafer production capacity is expected to reach approximately 300 million pieces per year[18] - The first production facility for Cast-mono wafers in Xuzhou entered commercial production, providing a new source of income for the Group[19] - The Group plans to further expand its production capacity depending on market demands in 2022[13] - The Group plans to establish a project company to produce Cast-mono HJT solar cells and modules, enhancing its vertical supply chain in the solar energy sector[15] - The Group expects to establish proprietary production of Cast-mono HJT solar cells and modules, forming a complete vertical supply chain[50] Revenue Sources - Revenue from photovoltaic products amounted to approximately RMB 44.8 million, contributing to the Group's new income source mainly in the last two months of the fourth quarter[27] - OEM business revenue increased by approximately RMB 156.0 million to approximately RMB 261.7 million during the year, up from RMB 105.7 million in 2020, as customers shifted orders back to the Group from Southeast Asia and India[25] - The Group anticipates a moderate increase in OEM business revenue as overseas retail markets are expected to recover with the easing of COVID-19 restrictions[18] - The increase in revenue and gross profit was also attributed to the transfer of OEM orders from Southeast Asia and Indian manufacturers back to the Group due to improved domestic conditions in China[20] Expenses and Liabilities - Selling and distribution expenses increased by 33.3% to approximately RMB 10.6 million, accounting for 3.4% of the Group's revenue, primarily due to increased sales during the year[29] - General and administrative expenses rose by approximately RMB 28.8 million or 48.2% to approximately RMB 88.5 million, mainly due to consultancy fees for photovoltaic products, increased wages, and higher research and development costs[30] - The Group reported a net cash outflow from operating activities of approximately RMB63.1 million for the year, compared to RMB2.6 million in 2020[31] - The Group's gearing ratio as of December 31, 2021, was 100.2%, a significant increase from -523.8% in 2020[32] Employee and Management - As of December 31, 2021, the Group had approximately 780 employees, with total staff costs amounting to approximately RMB 78,354,000, an increase from RMB 64,616,000 in 2020[42] - The Group's emolument policies are based on individual employee merit, with total staff costs reflecting a significant increase in employee numbers and remuneration[42] - The Group has obtained OHSAS 18001:2007 certification for Occupational Health and Safety Management, emphasizing its commitment to employee safety[176] - The Group provides comprehensive social security benefits, including basic salary, pensions, medical insurance, and housing provident fund[169] Environmental and Social Responsibility - The Group is committed to green and low-carbon development principles, integrating environmental protection with enterprise development[135] - The Group invested approximately RMB 1,253,000 in energy saving, environmental protection, and emission and waste reduction in 2021[135] - The Group's commitment to environmental protection is integrated into its business development strategy, emphasizing green and low-carbon principles[137] - The Group aims to minimize the environmental impact of its production and operating activities[135] Corporate Governance - The Board comprises 3 executive Directors, 1 non-executive Director, and 3 independent non-executive Directors, ensuring a strong independence element in its composition[75] - The independent non-executive Directors provide independent advice on the Group's business strategy, results, and management, protecting the interests of shareholders[79] - The Company has confirmed the independence of all independent non-executive Directors in accordance with the listing rules[81] - The audit committee's primary duties include reviewing the financial reporting process and monitoring the appointment and independence of auditors[89] Research and Development - The Group has applied for 16 patents related to Cast-mono wafers and Cast-mono HJT solar cells technologies[46] - The Group achieved a major breakthrough in thin silicon wafer mass production technology, enabling the mass production of 100μ ultra-thin silicon wafers for HJT N-type solar cells[48] - The Group transformed from a traditional manufacturer to a renewable energy technology company within 2021, achieving investment, mass production, delivery, and profit in the same year[46]

Revenue Performance - The company reported a total revenue of approximately RMB 161.8 million for the six months ended June 30, 2021, representing an increase of 235.5% compared to RMB 48.2 million in the same period of 2020[26]. - Revenue from OEM business reached RMB 157.3 million, a significant increase of 237.0% from RMB 46.7 million in the previous year[29]. - Revenue from graphene-based products surged to RMB 3.3 million, marking a remarkable increase of 703.9% compared to RMB 412,000 in 2020[29]. - The Group's revenue increased by approximately RMB 113.6 million or 235.5% to approximately RMB 161.8 million during the Period, primarily due to a rise in OEM business revenue by approximately RMB 110.6 million to RMB 157.3 million[30]. - Revenue from Boree Products decreased by 39.8% to approximately RMB 0.7 million during the Period[31]. - Revenue from Graphene-based Products amounted to approximately RMB 3.3 million, with Graphener revenue increasing by 218.9% to approximately RMB 1.3 million[32]. - Revenue for the six months ended June 30, 2021, reached RMB 161,825,000, a significant increase of 235% compared to RMB 48,240,000 in the same period of 2020[180]. - Revenue from the US market was RMB 153,418,000, representing a substantial increase of 273% from RMB 41,106,000 in 2020[172]. Profitability and Loss - The gross profit for the period was RMB 44.3 million, with a gross profit margin of approximately 27.4%, up from 12.5% in the corresponding period of 2020[26]. - The net loss for the period was approximately RMB 3.8 million, a reduction from a net loss of RMB 11.4 million in the same period last year, indicating a 66.4% improvement[27]. - The gross profit increased by approximately RMB 38.3 million, contributing to the reduction in net loss[27]. - The loss attributable to owners of the company for the period was RMB 3,839,000, compared to a loss of RMB 11,412,000 in the same period last year, showing an improvement of 66%[117]. - Basic and diluted loss per share for the period was RMB 0.002, compared to RMB 0.008 in the previous year, reflecting a reduction of 75%[117]. Financial Position - Shareholders' equity increased to RMB 261.9 million, reflecting a substantial growth of 595.1% compared to the previous year[25]. - Current assets increased to RMB 340,369,000 as of June 30, 2021, from RMB 102,799,000 as of December 31, 2020, marking a growth of 231%[121]. - The company had net current assets of RMB 135,782,000, compared to net current liabilities of RMB 132,103,000 as of December 31, 2020, indicating a turnaround[121]. - Total assets less current liabilities amounted to RMB 268,180,000 as of June 30, 2021, compared to a negative balance of RMB 39,262,000 at the end of 2020[121]. - The total equity of the company was RMB 261,965,000, compared to a capital deficiency of RMB 44,889,000 as of December 31, 2020, indicating a significant improvement in financial position[122]. Cash Flow and Financing - The Group experienced a net cash outflow from operating activities of approximately RMB 38.5 million during the Period[38]. - The net increase in cash and cash equivalents for the six months ended June 30, 2021, was RMB 162,634,000, a substantial rise from RMB 6,645,000 in the prior year[140]. - The company’s financing activities generated RMB 276,038,000 in cash for the six months ended June 30, 2021, compared to RMB 3,558,000 in the same period of 2020[140]. - Cash and bank balances increased approximately 260 times to RMB 163.3 million as of June 30, 2021[38]. - The Group's short-term borrowings were approximately RMB 102.9 million as of June 30, 2021, down from RMB 130.1 million at the end of 2020[38]. Expenses and Costs - Selling and distribution expenses increased by 32.4% to approximately RMB 5.2 million, accounting for 3.2% of the Group's revenue[34]. - General and administrative expenses rose by approximately RMB 20.4 million or 102.9% to approximately RMB 40.3 million, mainly due to consultancy fees and increased wages[36]. - Employee benefit expenses, including wages and salaries, totaled RMB 38,892,000, up from RMB 21,884,000, reflecting a 77% increase[183]. - Research and development costs increased by approximately RMB 1.9 million as the company expanded its efforts in new product development[27]. - Research and development costs for the period amounted to RMB 7,006,000, up from RMB 5,104,000 in 2020, indicating a 37% increase[183]. Share Capital and Options - As of June 30, 2021, the company had 1,652,695,608 shares issued and a paid-up capital of approximately RMB 110,019,000, an increase from 1,486,859,608 shares and RMB 99,310,000 as of January 1, 2021[41]. - The company issued 88,836,000 shares during the period in respect of the exercise of share options[190]. - The total number of shares in issue as of June 30, 2021, was 1,652,695,608 shares[103]. - The company adopted a new share option scheme on July 2, 2021, to motivate and reward its directors and eligible employees[47]. - As of June 30, 2021, the total outstanding share options amounted to 313,600,000, with 223,964,000 remaining unexercised[89]. Corporate Governance and Management - The company has complied with the Corporate Governance Code, with some deviations noted[105]. - Mr. Zheng Jingdong performed both roles of Chairman and CEO until February 25, 2021, after which Mr. Leung Tsz Chung was appointed as Chairman and CEO[107]. - Independent non-executive Director Ms. An Na did not attend the annual general meeting on June 29, 2021, due to other business commitments[108]. - The chairperson of the remuneration committee, Ms. An Na, was also unable to attend the annual general meeting on June 29, 2021, due to other business commitments[109]. Business Operations and Strategy - The company is engaged in the manufacture and sale of various products, including graphene-based materials and solar cells, indicating a focus on innovative technologies[142]. - The Group's reportable segments include Boree branded products, Graphene-based products, OEM, and Photovoltaic products[150]. - The Photovoltaic Products segment manufactures and sells Cast-mono wafers and solar cells, indicating the Group's involvement in renewable energy[153]. - The Group plans to achieve commercial mass production of Cast-mono wafers in the second half of 2021[63]. - Future plans include combining the Cast-mono Flexible Module with energy storage batteries for a home solar power storage system[64].

Financial Performance - For the year ended December 31, 2020, the Group recorded a revenue decrease of approximately RMB 57.8 million or 34.1%, totaling approximately RMB 111.9 million[11]. - The gross profit margin for the year dropped to approximately 16.1%, down from 17.7% in 2019[11]. - The Group experienced a loss for the year of RMB 108.8 million, compared to a loss of RMB 314.4 million in 2019[9]. - Total revenue decreased by 34.1% to approximately RMB111.9 million in 2020, down from RMB169.7 million in 2019[19]. - Revenue from Boree Products declined by 25.6% to approximately RMB2.0 million, compared to RMB2.7 million in 2019[19]. - Revenue from Graphene-based Products increased slightly by 3.2% to approximately RMB4.2 million, up from RMB4.0 million in 2019[19]. - OEM Business revenue decreased significantly by approximately RMB57.2 million to RMB105.7 million, down from RMB162.9 million in 2019[20]. - Selling and distribution expenses decreased by 28.6% to approximately RMB7.9 million, accounting for 7.1% of total revenue[20]. - General and administrative expenses increased by 34.1% to approximately RMB15.2 million, primarily due to increased share-based payment expenses and R&D costs[20]. - Net cash outflow from operating activities amounted to approximately RMB2.6 million, an improvement from RMB8.3 million in 2019[20]. - Cash and bank balances decreased by 84.8% to approximately RMB0.6 million as of December 31, 2020, down from RMB4.1 million in 2019[20]. Asset and Liability Management - Non-current assets decreased to RMB 92.8 million from RMB 153.9 million in 2019, indicating a significant reduction in long-term investments[9]. - Current liabilities increased to RMB 234.9 million, up from RMB 223.3 million in 2019, reflecting a rise in short-term obligations[9]. - Current asset ratio improved to 52.5%, up from 43.9% in 2019, indicating better short-term financial health[9]. - The gearing ratio was reported at (523.8)%, a significant increase from 466.4% in 2019, highlighting increased financial leverage[9]. - As of December 31, 2020, the Group's gearing ratio was -523.8%, a significant change from 466.4% in 2019, indicating a strong equity position relative to debt[21]. - Short-term borrowings increased to approximately RMB130.1 million, up from RMB114.2 million in 2019[20]. Strategic Focus and Market Outlook - The Group plans to focus on online sales in the PRC and the design and sales of indoor slippers in 2021, adapting to changing consumer purchasing habits[12]. - The Group expects delayed orders from OEM customers to resume in 2021 as the retail market recovers from COVID-19 impacts[12]. - The Group's management anticipates that the retail market will recover as COVID-19 vaccinations are rolled out and restrictions are eased[12]. - The Group aims to accelerate its transformation into a materials science company, entering the photovoltaic industry with plans to manufacture Cast-mono wafers and HJT solar cells[14]. - The Group successfully developed Cast-mono wafers that reduce wafer costs and plans to focus on mass production of these wafers and HJT solar cells[14]. Technological Development and Innovation - The launch of the new generation DIY automated vending system was delayed to October 2020 due to the COVID-19 pandemic[17]. - The Group recognized impairment losses of approximately RMB 51.3 million on technology know-how and approximately RMB 13.5 million on the O2O distribution system during the year[17]. - The Group conducted technological collaboration with leading companies in the photovoltaic industry to leverage its materials science expertise[14]. - The Group believes that the combination of higher energy conversion efficiency of HJT and innovative Cast-mono wafer technology positions them competitively against mainstream CZ-mono PERC cells[35]. Corporate Governance - The company has adopted the standard code for securities transactions by directors as per the Listing Rules, confirming compliance for the financial year ended December 31, 2020[40]. - The Board of Directors consists of a balanced composition with relevant expertise, ensuring compliance with Listing Rules 3.10(1) and (2) during the financial year[41]. - All directors are subject to re-election upon retirement by rotation, ensuring independent judgment without material relationships among board members[42]. - The Board held regular meetings throughout the year to monitor financial performance and strategic direction, with full minutes prepared after each meeting[43]. - The company secretary completed over 21 hours of relevant professional training in the financial year, exceeding the minimum requirement of 15 hours[48]. Environmental, Social, and Governance (ESG) Initiatives - The Group aims to balance stakeholder interests while committing to corporate social responsibility, focusing on product safety, quality, energy saving, and environmental protection[85]. - The Group's ESG Report covers the period from January 1, 2020, to December 31, 2020, maintaining consistency in the scope of information disclosed compared to the previous year[88]. - The Group has implemented measures to ensure that business operations create value for social, human, and natural capital[85]. - The Group has established a corporate website to facilitate effective communication with shareholders and provide updates on business activities[83]. - The Group emphasizes green and low-carbon development principles, integrating environmental protection with enterprise development[96]. Employee Management and Development - The Group had approximately 600 employees as of December 31, 2020, down from 740 in 2019, with total staff costs for the year amounting to approximately RMB64,616,000, compared to RMB62,951,000 in 2019[27]. - The employee gender distribution as of December 31, 2020, was 47.7% male (285) and 52.3% female (312), showing a shift towards a more balanced workforce compared to 2019[115]. - The Group provides comprehensive social security benefits, including basic salary, pensions, medical insurance, and housing provident fund, to attract and retain talent[110]. - The average training hours per employee increased to 6.35 in 2020 from 2.79 in 2019, reflecting enhanced training initiatives[127]. - The Group has obtained OHSAS 18001:2007 certification, emphasizing its commitment to occupational health and safety[117]. Risk Management - The company is committed to maintaining an effective risk management and internal control system to protect assets and shareholders' interests[80]. - The board and audit committee conducted a review of the internal control system, concluding that it is adequate and effective[80]. - The Group's financial risk management objectives and policies are outlined in note 40 to the consolidated financial statements[152]. Shareholder and Capital Management - The Board does not recommend payment of a final dividend for the year ended 31 December 2020, consistent with 2019 where no dividend was paid[160]. - As of 31 December 2020, the Company had no reserves available for distribution according to the Companies Law of the Cayman Islands[163]. - The company entered into a share subscription agreement for 20,000,000 new shares at HK$4 per share, expecting net proceeds of HK$79,700,000[78]. - A placing agreement was established to place up to 100,000,000 new shares at HK$4 per share, with maximum net proceeds anticipated to be HK$397,860,000[78].

Financial Performance - The company reported a revenue decrease of approximately RMB 51.7 million or 51.7% to approximately RMB 48.2 million for the six months ended June 30, 2020, compared to RMB 99.9 million in 2019[8]. - Gross profit margin dropped to approximately 12.5% for the period, down from approximately 19.0% in the corresponding period of 2019[9]. - The net loss for the period was approximately RMB 11.4 million, an improvement from a net loss of approximately RMB 40.3 million in the same period last year[9]. - Revenue from OEM business was RMB 46.7 million, significantly impacted by reduced consumer demand and price cuts requested by major customers[6]. - The company recorded a gross profit of RMB 6.0 million, down from RMB 19.0 million in the previous year[7]. - The Group's revenue decreased by approximately RMB 51.7 million or 51.7% to approximately RMB 48.2 million for the six months ended June 30, 2020, compared to RMB 99.9 million in the same period of 2019[10]. - The gross profit margin dropped from approximately 19.0% in 2019 to about 12.5% in 2020 due to price cuts requested by major OEM customers[10]. - The net loss for the period was approximately RMB 11.4 million, a decrease from a net loss of RMB 40.3 million in the same period last year, primarily due to a reduction in intangible asset amortization and employee benefit expenses[10]. - Revenue from the OEM business fell by 52.5% to approximately RMB 46.7 million, down from RMB 98.3 million in 2019[11]. - The Group reported a net cash inflow from operating activities of approximately RMB 6.0 million, an increase of 200.7% compared to RMB 2.0 million in the same period last year[15]. - Cash and bank balances increased by 162.0% to approximately RMB 10.7 million as of June 30, 2020, compared to RMB 4.1 million as of December 31, 2019[15]. - The consolidated loss attributable to owners of the Company for the period was approximately RMB 11,412,000, a significant improvement from RMB 40,255,000 in the previous year, representing a reduction of about 71.6%[112]. Assets and Liabilities - Shareholders' equity decreased to RMB 37.7 million from RMB 320.7 million in the previous year[7]. - Non-current assets were reported at RMB 162.9 million, down from RMB 415.1 million in 2019[7]. - As of June 30, 2020, the Group's gearing ratio was 530.2%, up from 466.4% on December 31, 2019[20]. - The Group's debt ratio as of June 30, 2020, was 84.1%, compared to 82.3% on December 31, 2019[21]. - The total number of employees decreased to approximately 530 as of June 30, 2020, from 740 employees on December 31, 2019, with total staff costs amounting to approximately RMB 21,884,000[21]. - Net current liabilities increased to RMB 122,468 as of June 30, 2020, compared to RMB 102,812 at the end of 2019[70]. - Total liabilities exceeded total assets by approximately RMB 147,807,000 as of June 30, 2020, indicating significant doubt on the Group's ability to continue as a going concern[79]. - Secured bank loans amounting to RMB 98,000,000 were classified as current liabilities due to a repayment on demand clause[81]. - The Group's total liabilities as of June 30, 2020, were RMB 226,420,000, compared to RMB 226,120,000 as of December 31, 2019, indicating a marginal increase[96]. Revenue Breakdown - Revenue from graphene-based products slightly decreased to approximately RMB 0.4 million during the period, down from RMB 0.5 million in 2019, due to delays in product launches[12]. - Revenue for the six months ended June 30, 2020, was RMB 48,240, a decrease of 51.8% from RMB 99,948 in the same period of 2019[68]. - Revenue from external customers in the PRC was RMB 3,060,000 for the six months ended June 30, 2020, down from RMB 4,406,000 in 2019, representing a decline of 30.5%[96]. - Revenue from external customers in the US was RMB 41,106,000 for the six months ended June 30, 2020, down from RMB 93,398,000 in 2019, a decrease of 56%[96]. - Major customer A contributed RMB 27,719,000 in revenue for the six months ended June 30, 2020, down from RMB 47,456,000 in 2019, a decline of 41.7%[99]. - The company’s revenue from Customer B was RMB 9,064,000 for the six months ended June 30, 2020, compared to RMB 6,088,000 in 2019, representing a growth of 48.8%[99]. Cost Management - Selling and distribution expenses decreased by 39.0% to approximately RMB 4.0 million, accounting for 8.2% of the Group's revenue[13]. - General and administrative expenses decreased by approximately RMB 4.6 million or 18.9% to approximately RMB 19.9 million, mainly due to a reduction in share-based payment expenses[14]. - The cost of inventories sold for the period was approximately RMB 42,007,000, a decrease from RMB 81,007,000 in the previous year, reflecting a reduction of about 48.1%[105]. - Employee benefit expenses totaled RMB 21,884,000 for the period, down from RMB 30,875,000 in the previous year, reflecting a decrease of approximately 29.1%[105]. Research and Development - The management is focusing on research and development of carbon-based energy storage batteries to explore new markets and business opportunities[22]. - Research and development costs for the period amounted to RMB 5,104,000, compared to RMB 4,971,000 in the previous year, indicating an increase of approximately 2.7%[107]. Share Options and Capital - The total number of outstanding share options as of June 30, 2020, is 136,880,000[44]. - The total number of shares issued by the company was 1,486,859,608[37]. - The company adopted the Share Option Scheme on January 8, 2011[42]. - The exercise price per share for options granted on December 10, 2015, is HK$0.81, and for those granted on June 19, 2018, is HK$0.54[46]. - The total number of share options granted during the period is 241,180,000[45]. - The exercise period for options granted on December 10, 2015, is from December 10, 2015, to December 9, 2020[46]. - The total number of share options exercised during the period is not specified but is part of the outstanding total[45]. Corporate Governance - The company has complied with the Corporate Governance Code, with some deviations noted[58]. - The roles of Chairman and Chief Executive Officer are held by Mr. Zheng Jingdong, which the board believes provides strong leadership[59]. - The company has adopted the Model Code for securities transactions by directors, and all directors confirmed compliance during the period[60]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, ensuring a strong independence element[59]. Future Outlook - The Group expects delayed customer orders in the first half of the year to gradually resume in the second half, with anticipated year-on-year sales growth in July and August for the OEM business[28]. - The Group aims to produce low-cost, long-life carbon-based energy storage batteries, targeting completion of all testing in 2020, and plans to enter the energy storage industry post-mass production[32]. - The Group has allocated more resources to online sales in the PRC, focusing on the design and sales of indoor slippers, with the newly launched graphene-based sterilizing slippers "Graphener" expected to see continuous sales growth in the second half of the year[29].

Financial Performance - For the year ended December 31, 2019, Baofeng Modern recorded a revenue increase of approximately RMB 5.2 million or 3.2%, totaling approximately RMB 169.7 million[8]. - The Group reported a loss for the year of RMB 314.4 million, compared to a loss of RMB 275.3 million in 2018[6]. - The gross profit margin decreased to approximately 17.7% due to customers shifting orders to manufacturers in Southeast Asia and India[8]. - Revenue from OEM business increased by 4.1% to approximately RMB 162.9 million in 2019, while revenue from graphene-based products decreased to approximately RMB 4.0 million[24]. - The revenue from Boree products decreased by 21.4% to approximately RMB 2.7 million in 2019 due to a decline in online sales[25]. - The Group experienced a net loss of approximately RMB 314.4 million in 2019, compared to a net loss of RMB 275.3 million in 2018, primarily due to impairment losses on intangible assets and amortization expenses[19]. Current Financial Position - Current assets were reported at RMB 120.5 million, while current liabilities stood at RMB 223.3 million, resulting in a current ratio of 0.5x[6]. - The debt ratio increased to 82.3%, indicating a high level of leverage compared to previous years[6]. - As of December 31, 2019, the Group's gearing ratio was 466.4% (2018: 80.9%), indicating a significant increase in leverage[32]. - The debt ratio as of December 31, 2019, was 82.3% (2018: 44.7%), reflecting a higher proportion of debt relative to equity[37]. Impact of COVID-19 - Looking ahead to 2020, the Group anticipates short-term impacts on operational and financial performance due to COVID-19 and ongoing trade tensions[9]. - The outbreak of COVID-19 in the PRC is expected to have a short-term negative impact on the Group's operational and financial performance, particularly affecting the OEM business and retail sales of slippers[50]. - The Group's factories in Fujian Province resumed work on February 10, 2020, but expects delays in product deliveries due to the COVID-19 epidemic[51]. - Major OEM customers in the US requested to postpone delivery times for some orders due to the ongoing outbreak since March 2020[51]. Strategic Focus and Product Development - The Group plans to focus on the design and sales of indoor slippers and allocate more resources to online sales in 2020[9]. - The Group aims to enhance brand popularity through cross-over collaborations and the new DIY vending system[10]. - The Group is focusing on developing household air purifiers and sterilizers in response to strong public demand due to the epidemic[15]. - A carbon-based energy storage batteries research and development line was established in the first half of 2019, with plans to commence mass production by the end of 2020[14]. - The Group aims to diversify its product offerings to include large-scale air conditioning systems and household air purifiers in the coming years[15]. Corporate Governance - The Group is committed to maintaining good corporate governance practices, ensuring compliance with the Corporate Governance Code throughout the financial year ended December 31, 2019[60]. - All independent non-executive Directors meet the guidelines for independence assessment as set out in the Listing Rules[60]. - The Board of Directors held regular meetings throughout the year to formulate overall strategy and monitor financial performance[62]. - The company secretary completed no less than 29 hours of relevant professional training during the financial year ended December 31, 2019[66]. - The independent non-executive directors provided independent advice on the Group's business strategy and management, ensuring shareholder interests are protected[75]. Environmental and Social Responsibility - The Group is committed to corporate social responsibility while pursuing growth, focusing on product safety, quality, and employee care[127]. - The Group has established and implemented the ISO14001 environmental management system since 2006, with annual reviews by third-party certification institutions[129]. - The Group aims to achieve resource recycling and non-hazardous objectives during production and operation processes[129]. - The total greenhouse gas (GHG) emissions decreased despite a revenue increase of approximately 3.2% in 2019, indicating improved emission control measures[136]. - The Group adheres to the "Environmental Protection Law of the People's Republic of China" and implements daily inspections of pollution treatment facilities to ensure compliance with national standards[132]. Employee Welfare and Training - The Group provides comprehensive social security benefits, including basic salary, pensions, and medical insurance, to ensure employee welfare[157]. - The Group conducts regular inspections and reviews of human resources policies to eliminate child labour and forced labour, ensuring compliance with relevant laws[168]. - The Group provides comprehensive orientation training for newly-recruited employees, covering corporate culture, operation processes, and safety management[167]. - The Group encourages employee participation in on-the-job training and provides subsidies to eligible employees[167]. Risk Management and Internal Controls - The Board is responsible for maintaining an effective risk management and internal control system to protect the Group's assets and shareholders' interests[119]. - During the financial year ended December 31, 2019, the Board and audit committee conducted a review of the internal control system and found it to be adequate and effective[120]. - The internal audit function is in place to support the Board in maintaining effective risk management and internal controls[119]. - The review of the internal control system covered all material controls, including financial, operational, and compliance controls[120].

Financial Performance - For the six months ended June 30, 2019, Baofeng Modern reported a revenue of approximately RMB 99.9 million, a decrease of 1.7% from RMB 101.7 million in the same period of 2018[12][15]. - The gross profit for the period was RMB 19.0 million, resulting in a gross profit margin of 19.0%, down from 24.6% in 2018[14][16]. - The company experienced a loss for the period of RMB 40.3 million, compared to a loss of RMB 55.0 million in the previous year, indicating a 26.8% improvement[13][14]. - Revenue from graphene-based products decreased significantly, with graphene-based EVA foam material and slippers contributing to this decline[15]. - Revenue from Boree branded products decreased by 48.3% to approximately RMB 1.1 million during the Period, primarily due to a decline in online sales[20]. - Revenue from Graphene-based products fell by 76.2% to approximately RMB 0.5 million, down from RMB 2.3 million in 2018, attributed to issues with the third generation DIY automated vending system[18]. - The Group recorded a net loss of approximately RMB 40.3 million for the Period, an improvement from a net loss of RMB 55.0 million in 2018[19]. - The consolidated loss attributable to owners of the Company for the period was approximately RMB 40,255,000, a decrease from 55,001,000 in 2018, reflecting an improvement of approximately 26.7%[162]. Revenue Segments - The OEM business segment generated revenue of RMB 98.3 million, a slight increase of 1.0% from RMB 97.3 million in 2018[13]. - The OEM business revenue slightly increased by 1.0% to approximately RMB 98.3 million, driven by new customer orders, despite a decrease in gross profit to approximately RMB 18.5 million from RMB 23.6 million in 2018[21]. - The Group's segment revenue for Boree branded products was RMB 1,110,000, for Graphene-based products was RMB 546,000, and for OEM was RMB 98,292,000, totaling RMB 99,948,000[138]. Cost Management - Selling and distribution expenses increased by 9.2% to approximately RMB 6.5 million, accounting for 6.5% of the Group's revenue, due to additional resources allocated to retain and explore new customers[23]. - General and administrative expenses decreased by approximately RMB 2.2 million or 8.2% to RMB 24.5 million, mainly due to a reduction in share-based payment expenses[25]. - The cost of inventories sold for the six months ended June 30, 2019, was RMB 81,007,000, an increase from RMB 77,109,000 in 2018, representing a growth of approximately 2.46%[155]. - Research and development costs for the period were RMB 4,971,000, up from RMB 3,704,000 in 2018, indicating a year-over-year increase of about 34.2%[155]. Assets and Liabilities - Current asset ratio improved to 21.9% from 12.7% in the previous year, indicating better liquidity management[14]. - As of June 30, 2019, cash and bank balances increased by 53.7% to approximately RMB 32.4 million from RMB 21.1 million as of December 31, 2018[27]. - The total liabilities of the Group as of June 30, 2019, were RMB 210,681,000, with corporate and other unallocated liabilities of RMB 210,381,000[139]. - The Group's short-term borrowings were approximately RMB 121.1 million as of June 30, 2019, slightly down from RMB 123.1 million as of December 31, 2018[27]. Share Capital and Equity - Shareholders' equity decreased to RMB 320.7 million from RMB 367.3 million, reflecting a 12.7% decline[14]. - The total number of shares in issue as of June 30, 2019, is 1,486,859,608 shares[52]. - The company issued new shares resulting in an increase of RMB 12,552,000 in share capital during the six months ended June 30, 2019[85]. - The total number of share options granted during the period is not specified, but outstanding options remain at 136,880,000[57]. Strategic Developments - The company is focusing on the development of the fourth generation DIY automated vending system, with a prototype trial run initiated in late December 2018[15]. - The fourth generation DIY automated vending system is expected to launch in the market in the fourth quarter of 2019, featuring advantages such as simple installation and low power consumption[38]. - The Group has initiated discussions with hospitals to promote graphene-based shoes for pregnant women, targeting a market launch in the second half of 2019[41]. - A carbon-based energy storage batteries research and development line was established in the first half of 2019, with the first batch of samples meeting required standards[43]. Compliance and Governance - The company has complied with the Corporate Governance Code, with some deviations noted regarding the roles of Chairman and CEO[69]. - The company did not recommend the payment of an interim dividend for the period, consistent with the previous year[162]. - The Directors believe that the Group has a good track record with banks, which will enhance its ability to renew bank borrowings upon expiry[95]. Accounting Policies - The Group adopted IFRS 16 using the modified retrospective method of adoption effective January 1, 2019[105]. - The Group recognized right-of-use assets and lease liabilities for previously classified operating leases, with lease liabilities based on the present value of remaining lease payments discounted at an incremental borrowing rate of 4.95%[106]. - Right-of-use assets are depreciated on a straight-line basis over the shorter of their estimated useful life and the lease term[119].

Financial Performance - Revenue for 2018 was RMB 164.5 million, an increase from RMB 125.5 million in 2017, representing a growth of 31%[6] - Gross profit for 2018 was RMB 39.5 million, with a gross profit margin of 24.0%[6] - The company reported a loss for the year of RMB (275.3) million, compared to a loss of RMB (435.4) million in 2017, indicating an improvement[6] - The Group recorded an increase in revenue of approximately RMB 39.0 million or 31.1% to approximately RMB 164.5 million in 2018[7] - The gross profit margin slightly increased to 24.0% in 2018, mainly due to effective cost control during the second half of the year[7] - Revenue from the OEM business increased by 30.6% to RMB156.5 million in 2018, compared to RMB119.9 million in 2017[14] - Revenue from Graphene-based products amounted to approximately RMB4.5 million in 2018, a significant increase of 111.7% from RMB2.1 million in 2017[14] - The Group reported a net loss of approximately RMB275.3 million in 2018, an improvement from a net loss of RMB435.4 million in 2017, mainly due to reduced amortization and impairment losses on intangible assets[13] Assets and Liabilities - Non-current assets decreased to RMB 441.9 million from RMB 705.3 million in 2017[6] - Current assets increased to RMB 128.8 million from RMB 110.4 million in 2017[6] - Current liabilities were RMB 251.9 million, a decrease from RMB 294.1 million in 2017[6] - Shareholders' equity stood at RMB 313.9 million, down from RMB 413.4 million in 2017[6] - The current ratio was 0.5x, indicating a slight improvement from 0.4x in 2017[6] - Gearing ratio improved to 44.7% from 49.0% in 2017, reflecting better financial stability[6] Market and Product Development - The company plans to focus on expanding its market presence and developing new technologies in the upcoming year[4] - The fourth generation of the DIY automated vending system is expected to be launched in the second quarter of 2019[7] - The Group developed graphene-based shoes for pregnant women in 2018 and is in discussions with hospitals for cooperation[7] - The development stage of the graphene deodorizing and sterilizing chips for air purifiers was completed, and they were launched in the PRC market in the first half of 2018[9] - The Group plans to enter the energy storage industry by providing carbon-based energy storage materials, with mass production expected in the coming year[10] - The Board anticipates a significant demand for environmental protection products like air purifiers due to tightened regulations and increased public awareness[9] Expenses and Cash Flow - Selling and distribution expenses increased by 11.9% to approximately RMB10.0 million, accounting for 6.1% of the Group's revenue (2017: 7.1%)[16] - General and administrative expenses rose by approximately RMB15.2 million or 38.1% during the year, mainly due to an increase in share-based payment expenses of approximately RMB12.0 million and an increase in impairment loss on trade receivables of approximately RMB4.4 million[16] - Net cash inflow from operating activities amounted to approximately RMB9.3 million (2017: RMB28.3 million), with cash and bank balances increasing by 258.0% to approximately RMB21.1 million as at 31 December 2018[16] Corporate Governance - The Board comprises 2 executive Directors, 1 non-executive Director, and 3 independent non-executive Directors, ensuring a strong independence element in its composition[43] - Independent non-executive Directors provide independent advice on the Group's business strategy, results, and management, ensuring the interests of shareholders are protected[45] - The Company has established three committees: the audit committee, the remuneration committee, and the nomination committee, to oversee specific aspects of its affairs[49] - The audit committee, comprising three independent non-executive Directors, held 5 meetings during the financial year to review financial reporting and internal control systems[52] Environmental and Social Responsibility - The Group emphasizes corporate social responsibility while pursuing growth, focusing on product safety, quality, and employee care[79] - The Group adheres to national environmental laws to minimize the impact of its production activities on the environment[81] - The Group has established and implemented the ISO14001 environmental management system since 2006, with annual reviews by third-party certification institutions[81] - The Group actively participates in social welfare activities, including community events, school donations, and charitable contributions[118] Employee Relations and Development - The Group provides comprehensive social security benefits, including basic salary, pensions, medical insurance, and housing provident fund, to attract and retain talent[100] - Employee performance appraisals and management position promotions are implemented to provide career development paths, including internal promotions and on-the-job training[100] - The Group adheres to fair employment principles, ensuring no discrimination based on gender, race, religion, or other non-working related factors[101] Risk Management and Internal Controls - The Board and audit committee conducted a review of the internal control system and procedures, concluding that the existing risk management and internal control systems are adequate and effective[73] - The audit committee assists the directors in overseeing the financial reporting process[198] - The Group's ability to continue as a going concern must be assessed by the directors, disclosing relevant matters as necessary[197] Share Capital and Ownership - The Company issued a total of 220,000,000 shares during the year, increasing the total shares in issue to 1,304,059,608 and paid-up capital to approximately RMB86,758,000[17] - As of December 31, 2018, the total number of shares issued by the company was 1,304,059,608 shares[162] - The share options granted have various exercise periods, with some extending until December 2021[169]