CHINA LEON INSPECTION HOLDING LIMITED 中国力鸿检验控股有限公司 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立的有限公司） (Stock Code 股份代號 : 1586) N O T I F I C A T I O N L E T T E R 通 知 信 函 Dear Non-registered holders(Note 1) , China Leon Inspection Holding Limited (the "Company") – Notice of Publication of 2024 Annual Report (the "Current Corporate Communication") The Current Corporate Communication of the Company has been published in English and Chinese languages and is available on the HKEXnews w ...

China Leon Inspection Holding Limited (the "Company") – Notice of Publication of 2024 Annual Report (the "Current Corporate Communication") CHINA LEON INSPECTION HOLDING LIMITED 中国力鸿检验控股有限公司 (Incorporated in the Cayman Islands with limited liability) （於開曼群島註冊成立的有限公司） (Stock Code 股份代號 : 1586) N O T I F I C A T I O N L E T T E R 通 知 信 函 30 April 2025 Dear Registered Shareholders, The Current Corporate Communication of the Company has been published in English and Chinese languages and is available on the HKEX ...

Company Operations and Services - The company operates 78 branches and professional laboratories worldwide, employing a total of 3,374 staff[13]. - The company provides services for over 50 types of commodities and natural resources, with 18 categories of professional qualification certifications[13]. - The clean energy sector includes quality inspection and re-inspection services for wind power systems and photovoltaic manufacturing, enhancing power generation stability[14]. - Environmental protection services include monitoring of water, wastewater, air, soil, and noise, supporting industrial enterprises and government-commissioned inspections[17]. - The company focuses on low-carbon emission reduction through Leakage Detection and Repair (LDAR) services, which are essential for accurate carbon emission reduction data[17]. - The company aims to expand its service coverage from the Asia-Pacific region to emerging markets in South America and Africa[13]. - The company emphasizes sustainable development and green low-carbon transition in its service offerings[13]. - The company provides witnessing supervision and joint inspection services to protect clients' interests during customs inspections[13]. - The company conducts environmental impact assessments and soil pollution investigations as part of its consulting services[17]. - The company enhances its environmental protection capabilities through integrated pipeline data platforms and risk assessment systems[17]. - The company provides comprehensive solutions in climate change, including carbon peak and neutrality advisory services, carbon asset development and trading services, ESG technical consulting, and low-carbon information-based integrated solutions[18]. - Key services include carbon emission checks, product carbon footprint assessments, and carbon emission reduction target setting, aimed at various industries such as power generation and petrochemicals[20]. - The company serves both domestic and international clients engaged in sustainable development projects across multiple sectors, including chemicals, iron and steel, and building materials[20]. - The company emphasizes the importance of its LDAR (Leak Detection and Repair) services, which help reduce pipeline accident rates and enhance environmental protection capabilities[19]. Management and Governance - The board consists of eight directors, including four executive directors, one non-executive director, and three independent non-executive directors, ensuring diverse governance[21]. - Mr. Li Xiangli, the chairman and CEO, has approximately 35 years of experience in the energy testing and inspection field, contributing to the company's strategic planning[25]. - Ms. Zhang Aiying, vice president and executive director, is responsible for procurement and human resources management within the group[28]. - The company has a strong management team with extensive experience in energy and inspection sectors, ensuring effective governance and operational efficiency[35]. - The acting-in-concert agreement among Mr. Li, Ms. Zhang, and Mr. Liu ensures unified decision-making in significant operational matters[34]. - The company is focused on maintaining compliance and internal control, which is critical for its long-term sustainability and growth[44]. - The management team includes professionals with advanced degrees and significant industry experience, strengthening the company's leadership[44]. - The substantial shareholding structure indicates a concentrated ownership, which may influence corporate governance and strategic decisions[34]. - The Company has adopted the CG Code to enhance corporate governance and align with shareholder interests[161]. - The Board ensures at least one-third of its members are independent non-executive Directors, with mechanisms in place for independent views and inputs[171]. - The Nomination Committee assesses the independence of independent non-executive Directors annually to ensure unbiased judgment[172]. - No equity-based remuneration with performance-related elements is granted to independent non-executive Directors to maintain their objectivity[173]. - The quality and efficiency of Board discussions are assessed by the chairman of the Board[175]. - Mr. Li Xiangli serves as both Chairman and CEO, which deviates from the CG Code's requirement for separation of these roles[181]. - The Board will review the effectiveness of the arrangement of Mr. Li holding both positions periodically[181]. - Newly appointed Directors receive formal induction to understand the Company's business and their responsibilities under the Listing Rules[188]. - Directors are required to submit details of their training received each financial year for proper training records maintenance[194]. - The Company ensures that each proposed Director obtains legal advice regarding their obligations under the Listing Rules before appointment[189]. - The Nomination Committee is responsible for identifying potential candidates for directorship according to the nomination criteria[182]. - One-third of Directors must retire by rotation at each annual general meeting, ensuring all Directors are subject to retirement at least once every three years[183]. - The Company will disclose in the next annual report the date when each proposed Director obtained legal advice[189]. - Directors participate in continuous professional training to comply with the CG Code[194]. - The Board considers recommendations from the Nomination Committee for the appointment, election, or re-election of Directors[182]. - All executive directors attended 100% of board meetings, with Mr. LI Xiangli, Ms. ZHANG Aiying, Mr. LIU Yi, and Mr. YANG Rongbing each attending 7 out of 7 meetings[198]. - Independent non-executive directors also attended all board meetings, with Mr. WANG Zichen, Mr. ZHAO Hong, and Mr. LIU Hoi Keung each attending 7 out of 7 meetings[198]. - The chairman of the Board held one meeting with independent non-executive directors without the presence of other directors during the year[198]. - The Company has adopted the Model Code for securities transactions to ensure compliance by directors and employees with inside information regulations[199]. - All directors confirmed compliance with the Model Code regarding securities transactions throughout the year ended 31 December 2024[200]. Financial Performance - The company has achieved a compound annual growth rate (CAGR) of 24.7% in revenue, 15.8% in company profit, and 9.9% in net profit attributable to the parent since its listing[70]. - The total return rate for the company's shareholders was 291.2% from 2016 to 2024[71]. - The company suspended cash dividends for the first time in 2024 to maximize shareholder value and initiated a share repurchase program, repurchasing 10,684,000 shares by February 28, 2025[71]. - The controlling shareholders increased their equity interest from approximately 52.7% at the time of listing to approximately 61.0% as of the current date[77]. - The company maintains a long-term stable dividend policy, delivering substantial cash dividends despite the pandemic's impact on the global economy[71]. - The company emphasizes a corporate strategy focused on sustainable development and long-term value creation for stakeholders[72]. - The Group recorded revenue of HK$1,263.1 million in 2024, representing a year-on-year increase of 12.9%[88]. - Profit for the Year reached HK$126.0 million, reflecting a year-on-year increase of 3.2%[88]. - Profit attributable to owners of the Company amounted to HK$82.7 million, marking a year-on-year increase of 3.4%[88]. - The Group's revenue increased by 12.9% from approximately HK$1,118.5 million in 2023 to approximately HK$1,263.1 million in 2024[121]. - Overseas revenue rose by 21.3% to HK$567.6 million in 2024, accounting for 44.9% of total Group revenue[121]. - The Group's profit attributable to owners increased by 3.4% to HK$82.7 million in 2024[120]. - The Group's ESG+ new businesses have experienced rapid growth, significantly broadening the customer base and exceeding expectations[121]. - Cash and cash equivalents rose from HK$227.3 million in 2023 to HK$267.2 million in 2024, indicating a strong cash position[124][128]. - Net cash inflows from operating activities were approximately HK$203.6 million in 2024, up from HK$175.1 million in 2023[125][129]. - Net cash outflows used in financing activities increased to approximately HK$93.0 million in 2024 from HK$40.1 million in 2023, primarily due to repayment of borrowings and dividend payments[126][130]. - The Group had a total capital commitment of approximately HK$3.4 million for contracted but not performed acquisition of property, plant, and equipment as of December 31, 2024[132][138]. - The Group maintained a healthy liquidity position throughout the year, ensuring sufficient cash and cash equivalents to support operations[133][139]. - The gearing ratio was zero in 2024, as cash and cash equivalents exceeded gross debt[144][145]. - Credit risk is managed by entering transactions only with recognized and creditworthy parties, and ongoing monitoring of receivable balances[146][148]. - The Group's other financial assets include cash and cash equivalents, with maximum exposure to credit risk equal to the carrying amounts of these assets[150]. - The Group was exposed to foreign currency risk primarily from Hong Kong dollar, Renminbi, United States dollar, and Singapore dollar[151]. - As of December 31, 2024, the Group had no investment properties pledged for banking facilities, while certain buildings valued at HK$26.0 million were pledged for facilities amounting to HK$29.8 million[153]. - During the year ended December 31, 2024, the Company repurchased 6,504,000 ordinary shares for approximately HK$12,982,560, which were subsequently cancelled[154]. - Following the reporting period, the Company repurchased an additional 4,180,000 shares for approximately HK$9,699,040, with 2,404,000 shares cancelled up to the report date[155]. Strategic Focus and Growth - The business scope has expanded from traditional energy to clean energy, environmental protection, and climate change sectors[89]. - The Group is actively focusing on mergers and acquisitions to enhance its international service network and leverage global growth opportunities[83]. - The Group's strategic focus includes the development of AI capabilities and integration of AI resources to drive innovation[81]. - The "3+X" development strategy prioritizes ESG-oriented growth, contributing to the green and low-carbon transition of the industry[90]. - The Group is advancing its third development strategy, increasing investment in clean energy and low-carbon transition initiatives[80]. - The Group has successfully expanded its presence in emerging markets, including Africa and the Middle East[89]. - The Group operates 78 service outlets and holds 18 categories of professional qualification certifications globally, covering over 50 types of commodities and natural resources[93]. - On January 22, 2024, the Group was designated as the inspection institution for alumina futures by the Shanghai Futures Exchange, enhancing its brand recognition in non-ferrous metals[94]. - The Group has established inspection qualifications across four major futures exchanges, including copper, aluminum, zinc, and ferroalloys, significantly strengthening its brand credibility[96]. - The Group has become the leading quality inspection institution for lithium carbonate, ferroalloys, and industrial silicon, contributing to the sustainable development of the new energy industry[100]. - The Group plans to complete the global deployment of its AI system by 2025, focusing on technological innovations such as AI-powered carbon emission accounting and quality prediction models for bulk energy commodities[106]. - The Group actively participates in the formulation of industry standards, including the national standard for recycled steel raw materials, which was issued on November 28, 2024[101]. - The Group's ESG+ business focuses on clean energy, environmental protection, and climate change, supporting clients in their transition to green and low-carbon operations[109]. - The Group continues to enhance its R&D investments, driving technological innovation and industry advancement through AI applications and automated systems[105]. - The Group aims to ensure the quality and safety of futures deliveries while supporting the stable operation of commodity futures and options markets[102]. - The Group's strategic focus on ESG development is a core part of its "3+X" strategy, promoting long-term sustainable growth and corporate social responsibility[92]. - The Group is focusing on expanding its clean energy business, particularly in wind and solar power generation[111]. - The climate change business has positioned the Group as a leading carbon asset trader in the Beijing carbon market, enhancing global operational capabilities[112]. - The Group aims to accelerate investment plans aligned with its ESG strategy, targeting mergers and acquisitions in emerging markets[115]. - The integration of AI and cutting-edge technology is expected to enhance service efficiency and customer satisfaction across the entire service process[116]. - The Group's environmental protection services, including LDAR, are crucial for reducing carbon emissions and achieving green low-carbon goals[111]. - The Group is committed to providing comprehensive carbon neutrality solutions to assist clients in meeting their corporate carbon neutrality commitments[112].

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 中國力鴻檢驗控股有限公司 呈交日期： 2025年4月29日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | 股份類別 不適用 | | | 於香港聯交所上市 | 是 | | | 證券代號 (如上市) | 01586 | 說明 股份回購 | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | 已發行股份（不包括庫存股份）變動 | | | 庫存股份變動 | | | | | 事件 | 已發行股份（不包括庫存股份）數 目 ...

Company Overview - China Lihong Inspection Holdings Limited (stock code: 1586.HK) is the first international comprehensive inspection and testing institution listed in Hong Kong, established in 2016 [1] - The company provides 24/7 professional inspection, testing, and technical consulting services to global industry leaders, supporting the green and low-carbon transformation of the industry [1] - It has established a global network with 58 branches and professional laboratories covering major trade ports and hub cities in the Asia-Pacific region, becoming the first Chinese TIC listed company with overseas layout [1] Business Segments Energy and Bulk Commodities - The company offers quality testing services, weight identification services, witnessing and joint inspection services, and other technical services across various energy and bulk commodity categories, including coal, crude oil, petrochemical products, and agricultural products [1] - Services are based on international, national, and regional industry standards [1] Clean Energy - The company has expanded its services to include testing for new energy sectors such as wind and solar power, focusing on quality testing of materials and components used in wind and solar energy projects [2] - It also conducts data collection and testing during the operational phase of wind and solar projects to enhance power generation stability [2] Environmental Protection - The environmental protection segment includes consulting and testing services, such as environmental impact assessments, soil pollution investigations, and various environmental monitoring services [2] - Services cater to industrial parks, government projects, and construction projects requiring indoor air quality assessments [2] LDAR Services - LDAR (Leak Detection and Repair) services play a crucial role in carbon reduction efforts, utilizing advanced detection technologies to identify and repair leaks in production processes [3] - This service helps control material leakage, reduce environmental pollution, and prevent economic losses for industries such as petrochemicals and pharmaceuticals [3] Climate Change Solutions - The company provides comprehensive solutions for carbon peak and carbon neutrality consulting, carbon asset development, and ESG consulting services [3] - Its services cover various industries, including power generation, petrochemicals, and construction, addressing climate change and sustainable development projects [3]

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 中國力鴻檢驗控股有限公司 呈交日期： 2025年4月28日 | 96,000 | 0.01619 % | HKD | FF305 2.417917 | | --- | --- | --- | --- | | 120,000 | 0.02023 % | HKD | 2.419333 | | 52,000 | 0.02023 % | HKD | 2.419333 | | 32,000 | 0.00539 % | HKD | 2.31375 | | 52,000 | 0.00876 % | HKD | 2.233846 | | 84,000 | 0.01415 % | HKD | 2.23 | 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | ...

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 第 2 頁 共 9 頁 v 1.3.0 公司名稱： 中國力鴻檢驗控股有限公司 呈交日期： 2025年4月25日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 | 是 | | | 證券代號 (如上市) | 01586 | 說明 | 股份回購 | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | 已發行股份（不包括庫存股份）變動 | | | 庫存股份變動 | | | | | 事件 ...

FF305 呈交日期： 2025年4月24日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 | 是 | | | 證券代號 (如上市) | 01586 | 說明 | 股份回購 | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | 已發行股份（不包括庫存股份）變動 | | | 庫存股份變動 | | | | | 事件 | 已發行股份（不包括庫存股份）數 目 | 佔有關事件前的現有已發 行股份（不包括庫存股 份）數目百分比 (註3) | | 庫存股份數目 | 每股發行/出售價 (註4) | 已發行股份總數 | | 於下列日期 ...

第 1 頁 共 9 頁 v 1.3.0 FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 中國力鴻檢驗控股有限公司 呈交日期： 2025年4月23日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | 股份類別 不適用 | | | 於香港聯交所上市 | 是 | | | 證券代號 (如上市) | 01586 | 說明 股份回購 | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | 已發行股份（不包括庫存股份）變動 | | | 庫存股份變動 | | | | | 事件 ...

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 中國力鴻檢驗控股有限公司 呈交日期： 2025年4月22日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 | 是 | | | 證券代號 (如上市) | 01586 | 說明 | 股份回購 | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | | | 已發行股份（不包括庫存股份）變動 | | | 庫存股份變動 | | | | | 事件 | 已發 ...