Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 69,714,000, representing a 33.5% increase from RMB 52,264,000 in the same period of 2024[4] - Gross profit for the same period was RMB 11,943,000, a decrease of 11.2% compared to RMB 13,460,000 in 2024[4] - The company reported a loss before tax of RMB 7,062,000, an improvement from a loss of RMB 9,657,000 in the prior year, indicating a 26.4% reduction in losses[4] - Customer contract revenue for the six months ended June 30, 2025, totaled RMB 69,714,000, compared to RMB 52,264,000 for the same period in 2024, representing a year-over-year increase of approximately 33.5%[14] - Financial income for the six months ended June 30, 2025, was RMB 2,148,000, up from RMB 1,427,000 in 2024, indicating a growth of about 50.5%[16] - The company reported a basic and diluted loss per share of RMB 0.012, an improvement from RMB 0.016 in the previous year[4] - The company reported a loss attributable to owners of the company of RMB 7,062,000 for the six months ended June 30, 2025, an improvement from a loss of RMB 9,657,000 in the same period of 2024, indicating a reduction in losses of approximately 26.5%[19] - The company recorded a gross profit of approximately RMB 11.9 million in the first half of 2025, compared to RMB 13.5 million in the same period of 2024, due to a decline in average selling prices[39] - The company reported a loss attributable to owners of approximately RMB 7.1 million for the period, compared to a loss of approximately RMB 9.7 million in the same period of 2024[43] Assets and Liabilities - Total assets as of June 30, 2025, amounted to RMB 446,022,000, up from RMB 436,924,000 at the end of 2024, reflecting a 2.5% increase[6] - Total liabilities increased to RMB 324,192,000 from RMB 305,766,000, marking a 6% rise[6] - The company's cash and cash equivalents rose significantly to RMB 48,041,000 from RMB 18,067,000, showing a 166.5% increase[5] - Trade receivables decreased to RMB 7,534,000 as of June 30, 2025, from RMB 10,274,000 as of December 31, 2024, showing a decline of approximately 26.7%[23] - Trade payables increased significantly to RMB 54,747,000 as of June 30, 2025, compared to RMB 33,462,000 as of December 31, 2024, representing a rise of about 63.3%[25] - The company's inventory as of June 30, 2025, totaled RMB 311,070,000, compared to RMB 297,545,000 as of December 31, 2024, marking an increase of approximately 4.5%[22] - As of June 30, 2025, the company's net current assets were approximately RMB 88.1 million, a slight decrease from RMB 90.1 million as of December 31, 2024[44] - The total outstanding borrowings as of June 30, 2025, were approximately RMB 9.7 million, down from RMB 11.7 million as of December 31, 2024[45] - The debt-to-asset ratio as of June 30, 2025, was 2.2%, a decrease from 2.7% as of December 31, 2024, primarily due to reduced borrowings[46] Operational Highlights - The company continues to focus on the design, development, production, and sales of denitration catalysts in China, indicating ongoing commitment to market expansion and product development[7] - Revenue from honeycomb denitrification catalysts increased by 467.3% to approximately RMB 60.7 million, compared to RMB 10.7 million in the same period of 2024, primarily due to increased sales volume[37] - Revenue from plate denitrification catalysts decreased by 80.8% to approximately RMB 7.3 million, down from RMB 38.0 million in the same period of 2024, mainly due to a decline in average selling price and sales volume[36] - The company signed 716 catalyst inquiries and technical support requests, completed 221 formal bids, and signed 92 technical agreements and business contracts in the first half of 2025[31] - The company achieved production for 88 orders of industrial honeycomb and plate catalysts in the first half of 2025, with production tasks increased compared to the same period last year[33] Expenses and Cost Management - Research and development expenses decreased to RMB 1,471,000 from RMB 2,303,000, a reduction of 36.1%[4] - Administrative expenses decreased by 30.3% to approximately RMB 8.5 million, down from RMB 12.2 million in the same period of 2024, due to further control of administrative costs[41] - Sales and marketing expenses increased by 10.2% to approximately RMB 13.0 million, compared to RMB 11.8 million in the same period of 2024, primarily due to increased efforts in promoting catalyst products in overseas markets[40] - The total cost of inventory recognized as expenses for the six months ended June 30, 2025, was approximately RMB 57,771,000, compared to RMB 38,804,000 for the same period in 2024, reflecting an increase of around 48.8%[22] Corporate Governance and Compliance - The company did not declare or recommend any dividends for the six months ended June 30, 2025, similar to the situation in the prior year[21] - The board of directors recommended not to declare an interim dividend for the current period, consistent with the previous period where no dividend was declared[59] - The audit committee reviewed the unaudited consolidated interim financial statements for the period, confirming compliance with applicable accounting standards and regulations[64] - The company has complied with the corporate governance code, except for the separation of the roles of chairman and CEO, which the board believes provides strong leadership[60] - The company updated its nomination committee's terms of reference on June 25, 2025, to comply with listing rules[61] - All directors confirmed compliance with the standard code of conduct for securities transactions during the period[62] Employee and Training Initiatives - As of June 30, 2025, the group had 186 employees, an increase from 184 employees as of December 31, 2024, with total employee compensation amounting to RMB 197 million, up from RMB 157 million for the six months ended June 30, 2024[57] - The company has adopted a stock option plan since October 14, 2015, to enhance employee retention and motivation[57] - The company has established an annual training program for employees to improve their skills and ensure new hires are adequately trained[57] Future Outlook and Plans - The company plans to continue optimizing its pricing system and sales incentive structure to expand market contracts in the second half of 2025[34] - The company is focusing on the development and marketing of new catalysts in the fields of waste incineration power generation, biomass power generation, and gas power generation[34] - The company plans to utilize the remaining balance of net proceeds for operational and general corporate purposes by the first quarter of 2027[50] Miscellaneous - The company did not purchase, sell, or redeem any listed securities during the period, and there were no treasury shares as of June 30, 2025[58] - The interim results announcement and report for the six months ended June 30, 2025, will be published on the company's and the stock exchange's websites by the end of September 2025[65] - The macroeconomic environment in China showed a GDP growth of 5.3% in the first half of 2025, with challenges such as overcapacity and price competition impacting overall economic performance[29]

Core Viewpoint - Dinos Environmental (01452.HK) announced that its board meeting will be held on August 29, 2025, to discuss various matters including the approval of the unaudited interim results for the six months ending June 30, 2025 [1] Group 1 - The board will consider and approve the unaudited interim results and interim report for the six months ending June 30, 2025, which will be published on the Hong Kong Stock Exchange and the company's website [1] - The board will also consider the proposal for an interim dividend distribution, if any [1] - Other matters will be addressed during the meeting [1]

香港交易所及結算所有限公司及香港聯合交易所有限公司對本公告的內容不負責任，對 其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內 容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 趙姝 香港，二零二五年八月十九日 1. 考慮及批准本集團截至二零二五年六月三十日止六個月之未經審核中期業績及中期 報告以及其於香港聯合交易所有限公司及本公司網站發佈； 2. 考慮建議派發中期股息（如有）；及 3. 處理任何其他事務。 於本公告日期，董事會包括執行董事趙姝女士及李可先生；非執行董事李興武先生；以 及獨立非執行董事陳躍華女士、王祖偉先生及王學謙博士。 1452 董事會會議通告 迪諾斯環保科技控股有限公司（「本公司」連同其附屬公司統稱「本集團」）董事（「董事」）會 （「董事會」）謹此宣佈，董事會會議將於二零二五年八月二十九日（星期五）舉行，藉以（其 中包括）： 承董事會命 迪諾斯環保科技控股有限公司 主席 DENOX ENVIRONMENTAL & TECHNOLOGY HOLDINGS LIMITED ...

公司名稱: 迪諾斯環保科技控股有限公司 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 呈交日期: 2025年8月5日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01452 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 5,000,000,000 | USD | | 0.01 | USD | | 50,000,000 | | 增加 / 減少 (-) | | | | | | | USD | | | | 本月底結存 | | | 5,000,000,000 | USD | | 0.01 | USD | | 50,000,000 | 本月底法定/註 ...

Company Overview - Dinos Environmental Technology Holdings Limited (stock code HK01452) was established in 2010 and is headquartered in Fengtai District, Beijing. It is a high-tech enterprise focused on the research, sales, and after-sales service of SCR denitrification catalysts for air pollution control [2] - The company has received various technological awards and holds multiple software copyrights, utility model patents, and invention patents. It is recognized as one of the few domestic companies capable of producing plate-type denitrification catalysts [2] - Dinos Environmental's products are widely applicable in industries such as power generation, steel, and mobile sources, with a market presence both domestically and internationally. The company has received high praise from well-known enterprises, including the five major power groups and VATTENFALL, EON [2] Financial Performance - As of December 31, 2024, Dinos Environmental reported total operating revenue of 109 million yuan, a year-on-year decrease of 13.79%. The net profit attributable to the parent company was -37.327 million yuan, down 46.76% year-on-year. The gross profit margin stood at 25.2%, and the debt-to-asset ratio was 69.98% [1] Industry Positioning - The average price-to-earnings (P/E) ratio for the industrial engineering sector (TTM) is 14.17 times, with a median of 2.5 times. Dinos Environmental's P/E ratio is -1.21 times, ranking 183rd in the industry [1] - Other companies in the sector include China Aerospace Wanyuan (01185.HK) with a P/E of 0.32 times, Yili Holdings (00076.HK) at 0.37 times, Tianjie Environment (01527.HK) at 1.89 times, Beijing Enterprises Environment Group (00154.HK) at 2.23 times, and Tongjing New Energy (08326.HK) at 2.5 times [1]

Financial Performance - Total revenue for the reporting period was approximately RMB 109.0 million, a decrease of 13.8% compared to RMB 126.4 million in the same period last year[98]. - Revenue from sales of flat plate denitration catalysts decreased by 8.5% to approximately RMB 53.5 million, primarily due to a 23.6% drop in average selling price[99]. - Revenue from sales of honeycomb denitration catalysts increased by 136.0% to approximately RMB 49.8 million, driven by a 204.5% increase in sales volume[100]. - Revenue from automotive denitration catalysts significantly decreased by 87.8% to approximately RMB 5.7 million, attributed to a substantial reduction in sales orders[101]. - Gross profit for the reporting period was approximately RMB 27.5 million, an increase of 12.2% compared to the previous year, due to increased production of honeycomb denitration catalysts[102]. - Administrative expenses rose by 57.1% to approximately RMB 26.4 million, mainly due to increased bonuses for senior management and overseas operational expenses[104]. - The current ratio decreased from 1.6 times to 1.3 times, and the quick ratio decreased from 0.5 times to 0.3 times, primarily due to an increase in customer advance payments[108]. - The debt-to-asset ratio increased to 2.7% from 1.2% in the previous year, mainly due to an increase in bank borrowings[111]. - The company recorded a net loss attributable to shareholders of approximately RMB 37.3 million, an increase of 46.8% from RMB 25.4 million in the previous year[106]. - Cash and cash equivalents as of December 31, 2024, were approximately RMB 18.1 million, down from RMB 44.3 million in the previous year[110]. - The group reported a net income attributable to shareholders of approximately RMB 11.7 million as of December 31, 2024, compared to RMB 4.5 million in 2023, indicating a significant increase in profitability[119]. Market and Product Development - The group's industrial catalyst segment maintained stable revenue and operations, with new contract amounts slightly increasing compared to 2023, achieving the group's set goals[14]. - The vehicle catalyst segment experienced a significant decline in natural gas vehicle OEM catalyst products, while the aftermarket catalysts remained stable but limited in total volume[14]. - The group plans to implement a contraction strategy for the vehicle catalyst segment by the end of 2024 to further reduce R&D and other expenses[14]. - For 2025, the group aims to continue reducing manufacturing costs and improving product gross margins through raw material procurement control and production process optimization[16]. - The group will focus on R&D for new industrial products, including high-porosity catalysts and low-temperature catalysts, among others[17]. - The group has established a foundation for overseas market expansion and aims for further breakthroughs in overseas contract amounts in 2025[18]. - The group has been increasing its market share in the domestic industrial catalyst market, which is currently stable and on the rise[18]. - The group plans to enhance market development efforts in emerging environmental industries, including waste incineration power generation and biomass power generation[95]. - The group aims to continue reducing manufacturing costs for mature products, building on the achievements made in 2024[95]. - The group has successfully installed and commissioned the corrugated plate catalyst production line, with orders already signed domestically and internationally[93]. - The group anticipates stable or slight growth in the de-NOx catalyst market outside of thermal power generation by 2025[89]. - The group will focus on developing new products, particularly in the areas of HCN catalysts and NHMC catalysts, to increase market share[95]. - The group has made strategic decisions to reduce R&D investments in the vehicle catalyst OEM market due to a significant decline in orders[94]. Corporate Governance - The board consists of six directors, including two executive directors, one non-executive director, and three independent non-executive directors[27]. - All directors are required to disclose their public company roles and significant commitments annually, ensuring they dedicate sufficient time and effort to the company's affairs[31]. - The board has a strong independence with over one-third of its members being independent non-executive directors, ensuring a balance of power and protection of shareholder interests[34]. - During the reporting period, all directors participated in training related to the Listing Rules and ongoing professional development to enhance their knowledge and skills[41]. - The board held a meeting with all independent non-executive directors without the presence of other directors to facilitate open discussions[33]. - The company has established formal and informal channels for independent non-executive directors to express their views confidentially when necessary[36]. - The board's composition includes experienced individuals, which effectively balances the power of the chairperson and executive director[31]. - The company has received independence confirmations from all independent non-executive directors, affirming their status as independent individuals[34]. - The board is responsible for determining business and investment plans, preparing annual budgets, and making profit distribution recommendations[31]. - The company encourages all directors to attend relevant training courses, with costs covered by the company[41]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee specific areas of governance[47]. - The Audit Committee held two meetings during the reporting period to review the financial performance for the year ending December 31, 2023, and the interim results for the six months ending June 30, 2024[49]. - The Remuneration Committee also conducted two meetings to review the remuneration of executive directors and senior management, as well as the share option scheme[53]. - The company’s governance structure includes a non-executive director and three independent non-executive directors to provide independent opinions[42]. - The company’s board believes that having the roles of Chairman and CEO combined under Zhao Shu provides strong and stable leadership[42]. - All executive directors have service contracts for three years, with a notice period of at least three months for termination[43]. - The company’s governance policies and practices are regularly reviewed to maintain high standards of corporate governance[45]. - The Audit Committee is responsible for providing independent opinions on the effectiveness of the group’s financial reporting procedures and internal controls[48]. - The company ensures compliance with legal and regulatory requirements through regular monitoring and review of policies and practices[45]. - The Nomination Committee held two meetings during the reporting period, with all members present, to assess the independence of non-executive directors and recommend the appointment of Dr. Wang Xueqian[56]. - The company has adopted a board diversity policy to ensure a balance of skills, experience, and perspectives[72]. - The board consists of at least one female director and at least one independent non-executive director with accounting or professional qualifications, ensuring diversity and compliance with governance standards[59]. - The company has set measurable targets for board diversity, which have been achieved during the reporting period[56]. - The external internal control audit function was outsourced to save costs, with the effectiveness of the internal control system audited annually[67]. - The board currently has two female directors, achieving gender diversity in compliance with Listing Rule 13.92[73]. - The gender ratio among employees, including senior management, is 78% male and 22% female as of December 31, 2024[73]. - The company plans to provide comprehensive training for female employees to prepare them for senior management and potential board succession[73]. Compliance and Risk Management - The company has implemented a whistleblowing policy to maintain transparency and accountability, with no significant fraud or misconduct incidents identified during the reporting period[69]. - The board has reviewed the effectiveness of risk management and internal control measures for the year ending December 31, 2024, ensuring compliance with established procedures and guidelines[68]. - The company has established a policy to promote and support anti-corruption laws and regulations, requiring employees to adhere to ethical standards and conduct[71]. - The company maintains compliance with applicable laws and regulations, with a compliance committee regularly reviewing policies and measures[133]. - The board is responsible for the risk management and internal control systems, which are reviewed annually for effectiveness, ensuring assets are protected from misappropriation and unauthorized allocation[64]. Shareholder Relations - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting[77]. - The company encourages shareholder participation in meetings and allows proxy voting for those unable to attend[84]. - The company has reviewed its shareholder communication policy and believes it has been effectively implemented[81]. - The company ensures compliance with all applicable rules and regulations through its company secretaries[75]. - The company is committed to providing clear and accessible information to shareholders and stakeholders through various communication channels[81]. Employee Development - The group has implemented an employee stock option plan since October 14, 2015, to reward and incentivize eligible participants contributing to business success[134]. - The group has established an annual training program for employees to enhance their skills and ensure new hires acquire essential competencies[126]. - The group emphasizes the importance of employee skills and contributions for growth, investing resources in training and development[126]. Strategic Initiatives - The group utilized approximately 30% of the net proceeds from the share subscription (RMB 1,008,826.6) for the development of coating products, 50% (RMB 1,681,377.6) for expanding overseas markets, and 20% (RMB 672,551.0) for general working capital[118]. - The group plans to establish sales offices in China and Europe to expand its sales network, with an investment of RMB 6.9 million allocated for this purpose[114]. - The group has no significant contingent liabilities, guarantees, or litigation as of December 31, 2023, and 2024[123]. - The group has no major investments or acquisitions planned beyond those disclosed in the report[124]. - The share subscription price was set at HKD 0.048 per share, representing a discount of approximately 4.0% compared to the market price on the subscription agreement date[117]. - The group aims to optimize its capital structure and reduce financial risk through the proceeds from the share subscription[117]. Management and Leadership - The company has a strong management team with members holding advanced degrees and significant industry experience, enhancing strategic planning and execution capabilities[194][195][196]. - The management team includes professionals with backgrounds in investment banking and project management, which supports the company's strategic growth initiatives[195][198]. - The company has established a strong foundation for future growth by leveraging its experienced leadership and innovative capabilities[194][200]. - The company is focused on expanding its market presence and enhancing its product offerings through ongoing R&D efforts[200]. Research and Innovation - The company has been involved in over 30 research projects, including national key R&D programs, indicating a strong commitment to innovation and technology development[200]. - The company has published over 150 research papers, with significant contributions to environmental engineering and resource utilization, showcasing its expertise in sustainable practices[200]. - The company has received multiple awards for its research achievements, including a second-class national technology invention award, reflecting its impact on the industry[200]. - The company is committed to sustainable development, as evidenced by its research in low-carbon technologies and waste management[200].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 108,963,000, a decrease of 13.7% compared to RMB 126,392,000 in 2023[3] - The company reported a net loss of RMB 37,327,000 for the year, compared to a net loss of RMB 25,434,000 in 2023, representing a 46.6% increase in losses[3] - The group's annual revenue for 2024 was RMB 108,963,000, a decrease of 13.7% from RMB 126,392,000 in 2023[12] - The group reported a net loss attributable to owners of RMB 37,327,000 for 2024, compared to a loss of RMB 25,434,000 in 2023, indicating a deterioration in performance[19] - Basic and diluted loss per share for 2024 was calculated based on a weighted average of 585,825,000 shares, compared to 494,037,000 shares in 2023[19] - Financial income from interest decreased to RMB 1,462,000 in 2024 from RMB 1,850,000 in 2023, a decline of 21%[15] - The group recognized a net foreign exchange gain of RMB 814,000 in 2024, up from RMB 423,000 in 2023, reflecting improved currency management[14] - The group recorded total revenue of approximately RMB 109.0 million in 2024, a decrease of 13.8% compared to approximately RMB 126.4 million in 2023[39] Profitability and Expenses - Gross profit increased to RMB 27,460,000, up 11.9% from RMB 24,528,000 in the previous year[3] - The group achieved a gross profit of approximately RMB 27.5 million, an increase of 12.2% compared to the same period in 2023, due to increased production of honeycomb denitration catalysts[43] - Research and development expenses rose to RMB 8,052,000, an increase of 7.7% from RMB 7,476,000 in 2023[3] - Employee benefits expenses increased to RMB 29,606,000 in 2024 from RMB 27,585,000 in 2023, an increase of 7.3%[18] - Sales and marketing expenses rose to 26.6% of total customer contract revenue in 2024, up from 22.7% in 2023, due to increased efforts in promoting products to overseas markets[44] - Administrative expenses increased by 57.1% to approximately RMB 26.4 million, mainly due to higher bonuses for senior management and overseas operational costs[45] Assets and Liabilities - Total assets increased to RMB 436,924,000, up 17.7% from RMB 371,125,000 in the previous year[4] - Current liabilities increased significantly to RMB 297,170,000, a rise of 46.3% from RMB 203,043,000 in 2023[5] - The company's equity decreased to RMB 131,158,000, down 19.9% from RMB 163,966,000 in the previous year[5] - Trade receivables decreased to RMB 10,274,000 in 2024 from RMB 19,958,000 in 2023, reflecting a decline of 48.6%[22] - The total trade payables increased to RMB 33,462,000 in 2024, up 44.2% from RMB 23,183,000 in 2023[24] - The group's net current assets were approximately RMB 90.1 million as of December 31, 2024, down from RMB 122.1 million in 2023[51] - The debt-to-asset ratio rose to 2.7% as of December 31, 2024, compared to 1.2% in 2023, primarily due to increased bank borrowings[52] Inventory and Production - Inventory levels increased to RMB 297,545,000, a rise of 35.1% from RMB 220,199,000 in 2023[4] - As of December 31, 2024, the total inventory reached RMB 297,545,000, an increase of 35.1% from RMB 220,199,000 in 2023[21] - The total production of catalysts in 2024 continued to rise from 2023, with improved cost control leading to a noticeable decrease in manufacturing expenses[32] - The company completed over 1,500 catalyst technical proposals and signed more than 150 supply contracts in 2024, indicating a significant increase in market activity[31] Market and Strategic Focus - The company is actively exploring new technologies and products in the environmental sector to enhance its market position[6] - The group plans to focus on the industrial catalyst market, particularly in emerging environmental industries, and will reduce investment in the automotive catalyst OEM market[35][36] - The group aims to enhance product development and market promotion for industrial catalysts, including CO catalysts and HCN catalysts, to achieve better market performance by 2025[37] - The market for CO catalysts in the metallurgy industry is projected to be a RMB 10 billion market, with the company cautiously participating due to the industry's profitability challenges[31] - Revenue from sales of honeycomb denitration catalysts increased by 136.0% to approximately RMB 49.8 million, driven by a significant increase in sales volume[41] - Revenue from automotive denitration catalysts dropped by 87.8% to approximately RMB 5.7 million, attributed to a substantial decrease in sales orders[42] Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the separation of the roles of chairman and CEO, which are held by the same individual[73] - The audit committee, consisting of three independent non-executive directors, reviewed the consolidated financial statements for the year ending December 31, 2024[74] - The preliminary financial results for the year ending December 31, 2024, have been verified by the auditor, confirming consistency with the audited financial statements to be approved by the board on March 28, 2025[75] - The annual performance announcement will be published on the company's website and the Hong Kong Stock Exchange website, with the annual report and shareholder meeting notice to be released by the end of April 2025[76] Employee and Shareholder Matters - The company has adopted a stock option plan since October 14, 2015, to enhance employee compensation and retention[62] - The group did not declare or propose any dividends for the year ended December 31, 2024, consistent with 2023[20] - The company does not recommend the payment of a final dividend for the reporting period, consistent with the previous year[68] - The net proceeds from the share subscription agreement amounted to approximately HKD 3,362,000, which was utilized for product development (30%), overseas market expansion (50%), and general operating expenses (20%)[64] - The company issued 98,807,400 shares at a subscription price of HKD 0.048 per share, representing a discount of approximately 4.0% from the market price on November 6, 2023[63]

Financial Performance - The total revenue for the first half of 2024 was approximately RMB 52.3 million, remaining stable compared to RMB 52.3 million in the same period of 2023[13]. - Revenue for the six months ended June 30, 2024, was RMB 52,264 thousand, slightly down from RMB 52,289 thousand in the same period last year[51]. - Revenue from flat plate denitration catalysts increased to approximately RMB 38.0 million, a 428.0% increase compared to RMB 7.2 million in the same period of 2023[14]. - Revenue from honeycomb denitration catalysts decreased to approximately RMB 10.7 million, a 65.3% decrease from RMB 30.8 million in the same period of 2023[15]. - Revenue from automotive denitration catalysts recorded approximately RMB 3.6 million, a 74.8% decrease from RMB 14.3 million in the same period of 2023[16]. - Gross profit for the period was approximately RMB 13.5 million, up from RMB 9.6 million in the same period of 2023[17]. - The company reported a loss of RMB 9,657 thousand for the period, compared to a loss of RMB 9,782 thousand in the previous year, showing a slight improvement[51]. - Basic loss per share improved to RMB (0.016) from RMB (0.020) year-on-year[51]. - The total comprehensive income for the period was RMB 943 thousand, which includes a loss of RMB (9,657) thousand[56]. Market and Business Development - In the first half of 2024, the company completed 578 catalyst inquiries and technical support, with 232 formal bids and 79 technical agreements and business contracts signed, indicating a continuous increase in marketing efforts[8]. - The production of industrial honeycomb and plate catalysts increased compared to the same period last year, with plate catalysts accounting for 58% of total production, up from 43% in the first half of 2023[9]. - The domestic commercial vehicle market showed stable growth, with production and sales of commercial vehicles increasing by 2% and 4.9% year-on-year, respectively[10]. - The company signed two large annual procurement agreements for plate catalysts with central enterprises, enhancing its market presence[8]. - The company achieved breakthroughs in the application of honeycomb denitrification catalysts in the shipping industry, marking a significant milestone[8]. - The company plans to adjust its strategy in the second half of 2024 to address the fluctuations in the vehicle catalyst business[10]. - The biomass power generation industry is expected to see growth opportunities in the next two to three years due to requirements for ultra-low emissions[7]. - The company expects a revenue growth of 25% for the full year 2024, driven by new product launches and market expansion[89]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share by the end of 2025[89]. - A strategic acquisition of a local competitor is anticipated to be completed by Q3 2024, which is expected to increase market penetration by 15%[89]. Expenses and Financial Management - Sales and marketing expenses increased by 20.4% to approximately RMB 11.8 million, accounting for 22.6% of total customer contract revenue[18]. - Administrative expenses rose by 45.2% to approximately RMB 12.2 million, primarily due to increases in employee bonuses and professional fees[19]. - Research and development expenses were RMB 2,303 thousand, a slight increase from RMB 2,276 thousand year-on-year[51]. - The company recorded a net cash outflow from operating activities of RMB (10,194) thousand, compared to RMB (1,108) thousand for the same period in 2023[57]. - The net cash used in investing activities was RMB (21,528) thousand, significantly higher than RMB (1,326) thousand in the prior year, primarily due to deposits in bank accounts with maturities over three months totaling RMB (16,477) thousand[57]. - The company raised RMB 4,349 thousand from issuing shares during the period, with share issuance expenses amounting to RMB (1,266) thousand[57]. - The company has allocated RMB 100 million for further technological advancements in the next fiscal year[89]. Assets and Liabilities - As of June 30, 2024, the company's current assets were approximately RMB 113.4 million, with cash and cash equivalents at approximately RMB 24.3 million[22]. - The total assets as of June 30, 2024, amounted to RMB 422,564 thousand, up from RMB 371,125 thousand at the end of 2023, reflecting a growth of 13.8%[52]. - The company’s total liabilities increased to RMB 264,229 thousand from RMB 207,159 thousand, representing a rise of 27.5%[52]. - The debt-to-asset ratio increased to 3.07% as of June 30, 2024, up from 1.2% at the end of 2023, primarily due to increased bank borrowings[24]. - Trade payables increased significantly to RMB 56,452,000 as of June 30, 2024, compared to RMB 23,183,000 as of December 31, 2023, marking a 143.2% rise[83]. Employee and Governance - As of June 30, 2024, the company had 196 employees, an increase from 189 employees as of December 31, 2023[38]. - Employee compensation for the period was RMB 15.7 million, up from RMB 11.9 million for the six months ended June 30, 2023, representing a 32% increase[38]. - The board recommended not to declare an interim dividend for the period, consistent with the previous period where no dividend was declared[45]. - The company has complied with the corporate governance code, except for a deviation regarding the roles of the chairman and CEO[47]. - All directors confirmed compliance with the standard code of conduct regarding securities trading during the period[48]. Strategic Focus and Future Outlook - The company is focused on the design, development, and production of denitration catalysts in China, indicating a strategic emphasis on environmental technology[59]. - The company is committed to sustainability, with plans to reduce carbon emissions by 40% by 2025 through innovative technologies[89]. - Research and development efforts have led to the introduction of a new type of flat plate denitration catalyst, which is expected to enhance efficiency by 30%[89]. - The gross margin improved to 35%, up from 30% in the previous year, due to cost optimization strategies[89]. - The company has a stock option plan adopted on October 14, 2015, which is valid for 10 years, with no stock options granted, exercised, canceled, or expired as of June 30, 2024[43].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 52,264,000, slightly down from RMB 52,289,000 in the same period of 2023[2] - Gross profit increased to RMB 13,460,000, compared to RMB 9,628,000 in the previous year, representing a growth of 39.1%[2] - The company reported a loss before tax of RMB 9,657,000, compared to a loss of RMB 9,782,000 in the same period last year, indicating a reduction in losses[2] - Basic loss per share improved to RMB 0.016 from RMB 0.020, indicating a reduction in loss per share[2] - The net loss for the period was approximately RMB 9.7 million, slightly improved from a net loss of RMB 9.8 million in the same period of 2023[34] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 422,564,000, up from RMB 371,125,000 at the end of 2023, reflecting a growth of 13.8%[3] - Total liabilities rose to RMB 264,229,000 from RMB 207,159,000, an increase of 27.5%[4] - The company’s net assets decreased to RMB 158,335,000 from RMB 163,966,000, a decline of 3.9%[4] - As of June 30, 2024, the net current assets were approximately RMB 113.4 million, down from RMB 122.1 million as of December 31, 2023[35] - The debt-to-asset ratio increased to 3.07% as of June 30, 2024, compared to 1.2% as of December 31, 2023, primarily due to increased bank borrowings[36] Inventory and Receivables - Inventory increased significantly to RMB 271,382,000 from RMB 220,199,000, marking a rise of 23.2%[3] - Trade receivables, net of impairment provisions, were RMB 15,298,000 as of June 30, 2024, compared to RMB 23,376,000 at the end of 2023, reflecting a decrease of about 34%[15] - Inventory costs recognized as expenses amounted to approximately RMB 38,804,000, down from RMB 42,661,000 in the previous year[14] Revenue Breakdown - Sales of flat denitration catalysts increased significantly to RMB 37,991,000 from RMB 7,195,000, representing a growth of approximately 426%[9] - Revenue from the sale of plate denitrification catalysts increased by 428% to approximately RMB 37.99 million, up from RMB 7.2 million in the same period of 2023[27] - Revenue from the sale of honeycomb denitrification catalysts decreased by 65.3% to approximately RMB 10.7 million, down from RMB 30.78 million in the same period of 2023[28] - The revenue from automotive denitration catalysts was approximately RMB 3.6 million, a decrease of 74.8% compared to RMB 14.3 million in the same period of 2023[29] Expenses - Research and development expenses were RMB 2,303,000, a slight increase from RMB 2,276,000 in the prior year[2] - Sales and marketing expenses increased by 20.4% to approximately RMB 11.8 million, representing 22.6% of total customer contract revenue for the six months ended June 30, 2024, compared to 18.7% in the same period of 2023[31] - Administrative expenses rose by 45.2% to approximately RMB 12.2 million, up from RMB 8.4 million in the same period of 2023, mainly due to increases in employee bonuses and professional fees[32] - Employee compensation for the period was RMB 15.7 million, an increase from RMB 11.9 million for the same period last year[48] Strategic Initiatives - The company plans to strengthen overseas sales efforts and has established an overseas branch with new technical and sales personnel[25] - The company is considering strategic adjustments for its vehicle catalyst division due to significant reliance on a single customer, which has led to order fluctuations[24] - The overall market for industrial plate and honeycomb catalysts is becoming increasingly competitive, prompting the company to optimize production processes and reduce costs[25] - The biomass power generation industry is expected to see growth opportunities in the next two to three years due to ultra-low emission requirements[21] Capital and Investments - The company invested approximately RMB 6.5 million in capital expenditures for purchasing properties, plants, and equipment during the period[43] - As of June 30, 2024, the company's capital commitment for investing in a joint venture was RMB 1.4 million, with an additional RMB 2.2 million for purchasing properties, plants, and equipment[44] - The company has approximately RMB 16.3 million remaining from the net proceeds of its listing, which is held in interest-bearing bank accounts[39] - The company plans to allocate RMB 171 million for various purposes, including R&D and market expansion, with specific allocations for developing diesel vehicle denitration catalysts and acquiring potential target companies[40] Governance and Dividends - The company did not declare or recommend any dividends for the six months ended June 30, 2024, similar to the previous year[14] - The company has complied with the corporate governance code, except for a deviation regarding the roles of the chairman and CEO[51]

Financial Performance - In 2023, the group's total revenue continued to grow steadily, with new contracts for industrial catalysts increasing compared to 2022, achieving the group's set goals[12]. - The total revenue for the group in 2023 was approximately RMB 126.4 million, an increase of 101.3% compared to RMB 62.8 million in 2022[92]. - The sales of plate denitrification catalysts accounted for 46.3% of total revenue in 2023, generating RMB 58.5 million, while honeycomb denitrification catalysts contributed 16.7% with RMB 21.1 million[92]. - Revenue from sales of plate denitration catalysts increased by 12.7% to approximately RMB 58.5 million compared to RMB 51.9 million in the same period of 2022[93]. - Revenue from sales of honeycomb denitration catalysts surged by 119.8% to approximately RMB 21.1 million from RMB 9.6 million in the same period of 2022, driven by increased market demand[93]. - Revenue from automotive denitration catalysts was approximately RMB 46.7 million, significantly increasing due to the company's efforts in developing the automotive catalyst market[95]. - The company's loss attributable to owners increased by 8.1% to approximately RMB 25.4 million from RMB 23.5 million in 2022[100]. Market and Operational Strategy - The production and sales volume of industrial honeycomb catalysts continued to rise, while the vehicle catalyst segment saw a significant rebound in sales volume post-pandemic, particularly in the commercial vehicle sector[12]. - The group plans to enhance production capacity for industrial honeycomb catalysts and accelerate the launch of new technologies and products in 2024[13]. - The company intends to expand its business scope in the catalyst sector by developing new technologies and products, targeting blue ocean markets[16]. - The group will continue to strengthen its overseas market development and focus on cost control to improve operational performance[15]. - The group plans to strengthen overseas market expansion in 2024, focusing on high-quality products and recruiting experienced international sales personnel[86]. - The group has made breakthroughs in applying plate catalysts in industrial silicon and honeycomb denitrification catalysts in major steel groups, laying a foundation for future growth[86]. Governance and Board Structure - The board consists of six members, including two executive directors, one non-executive director, and three independent non-executive directors[24]. - The board has a strong independent element, with independent non-executive directors accounting for over one-third of the board[30]. - The company has established various formal and informal channels for independent non-executive directors to express their views confidentially[31]. - The roles of the chairman and the chief executive officer are held by the same person, Zhao Shu, to provide strong and stable leadership[37]. - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with defined written terms of reference[40]. - The Audit Committee consists of three independent non-executive directors and held two meetings during the reporting period to review financial performance and compliance procedures[41][42]. Compliance and Risk Management - The company has established a risk management framework that includes five key components: risk identification, risk assessment, risk treatment, risk reporting, and risk monitoring[55]. - The internal control system was audited by an external consultant, and the audit committee and board deemed the risk management and internal control systems to be sufficient and effective[56]. - The group’s compliance procedures ensure adherence to applicable laws and regulations, with regular reviews by the audit committee[131]. - The company has adopted an anti-corruption policy and regularly trains senior management and employees on compliance[59]. Employee and Social Responsibility - The company emphasizes employee health and well-being by providing medical insurance benefits and promoting a safe working environment[134]. - The group has established an annual training program for employees to enhance their skills and improve production capabilities[122]. - The company plans to provide comprehensive training for female employees to prepare them for senior management and potential board succession[62]. - The company has adopted a whistleblowing policy to maintain transparency and accountability, with no significant fraud or misconduct incidents reported for the fiscal year[57]. Shareholder Engagement - The company maintains regular communication with institutional investors and analysts to inform them about its strategies, operations, and plans[72]. - The company encourages shareholders to attend annual general meetings and allows proxy voting for those unable to attend[75]. - The company has revised its articles of association to enhance shareholder protection and allow for hybrid meetings[76]. - The board will convene a special general meeting within two months if a valid request is made by qualified shareholders[67]. Financial Position and Investments - The company's net current assets were approximately RMB 122.1 million as of December 31, 2023, compared to RMB 139.2 million in 2022, with cash and cash equivalents increasing to approximately RMB 44.3 million from RMB 24.0 million[105]. - The group has outstanding borrowings of approximately RMB 4.5 million, compared to none in 2022[114]. - The group has a capital commitment of RMB 1.4 million for investment in a joint venture focused on developing and producing vehicle denitration catalysts[117]. - The group has no significant contingent liabilities, guarantees, or litigation as of December 31, 2023[118]. Market Conditions - The GDP of China reached 126 trillion RMB in 2023, with a growth rate of 5.2%, indicating a recovering economic environment post-COVID[11]. - China's GDP grew by 5% year-on-year in 2023, achieving the set target, but the economic structure has undergone significant changes[79]. - The industrial denitration catalyst sector remains highly competitive, with overall operational difficulties faced by competitors[79]. - There are emerging market opportunities in high-end denitration catalyst products and environmental catalysts, but these require high technical standards[79].