Financial Performance - The total revenue for the six months ended June 30, 2023, was HKD 505,380,000, representing a significant increase of 17% compared to HKD 431,761,000 for the same period in 2022[8]. - Total comprehensive income for the six months ended June 30, 2023, was HKD 59,823,000, representing an increase of 48.5% compared to HKD 40,177,000 for the same period in 2022[44]. - Profit attributable to equity holders of the company for the period was HKD 48,288,000, up from HKD 35,822,000 in the previous year, reflecting a growth of 34.7%[52]. - Profit for the period reached HKD 68.5 million, reflecting a year-on-year growth of 50.2%[68]. - The gross profit for the period was HKD 230.8 million, compared to HKD 182.0 million in the previous period, indicating a significant increase[93]. - The company reported a profit before tax of HKD 82.0 million for the six months ended June 30, 2023, up from HKD 54.6 million in the same period last year, reflecting a strong performance[93]. - Basic earnings per share increased to 10.01 HKD cents from 7.45 HKD cents, marking a rise of 34.2%[44]. - Diluted earnings per share also rose to 9.98 HKD cents from 7.44 HKD cents, indicating an increase of 34.2%[44]. Assets and Liabilities - As of June 30, 2023, the total assets amounted to HKD 582,320,000, an increase from HKD 578,528,000 as of December 31, 2022, reflecting a growth of approximately 0.5%[4]. - The company reported a net asset value of HKD 551,698,000 as of June 30, 2023, compared to HKD 487,025,000 at the end of 2022, reflecting an increase of approximately 13%[13]. - The total liabilities decreased to HKD 219,266,000 from HKD 181,560,000, indicating a reduction of about 18%[4]. - The total liabilities decreased from HKD 43,622,000 in December 2022 to HKD 36,196,000 as of June 30, 2023, representing a reduction of 17.7%[39]. - The company’s total assets and liabilities were managed effectively, with cash and cash equivalents exceeding total liabilities, resulting in a leverage ratio of zero[84]. Revenue Breakdown - The revenue from testing services reached HKD 305,166,000, up from HKD 279,920,000, indicating an increase of about 9%[8]. - The revenue from certification services increased to HKD 134,549,000, compared to HKD 111,025,000, marking a growth of approximately 21%[8]. - The company achieved revenue of HKD 505.4 million for the first half of 2023, representing a year-on-year increase of 17.0%[68]. - The company's revenue increased from approximately HKD 431.8 million for the six months ended June 30, 2022, to approximately HKD 505.4 million for the same period in 2023, representing a growth of 17.0%[112]. Cash Flow and Investments - The net cash and cash equivalents as of June 30, 2023, were HKD 213,846,000, a decrease from HKD 222,254,000 as of December 31, 2022[4]. - The company maintained a prudent financial policy, ensuring a healthy liquidity position throughout the review period[135]. - The company plans to accelerate investments aligned with its ESG strategy, focusing on potential acquisitions and investment opportunities in green low-carbon sectors[132]. Dividends - The company declared an interim dividend of HKD 0.0269 per share for the six months ended June 30, 2023, compared to HKD 0.022 per share in 2022, reflecting an increase of 22.5%[42]. - The interim dividend declared was HKD 0.0269 per share, an increase from HKD 0.022 per share for the six months ended June 30, 2022[98]. Research and Development - The company continues to increase its R&D efforts to enhance technological innovation capabilities in environmental protection services[63]. - The company has increased its R&D investment to enhance service efficiency and quality through the development of a digital testing platform for coal[100]. - The company is actively advancing inspection and testing technology innovations, particularly in solar thermal power testing, achieving significant results[62]. Market Position and Strategy - The company is positioned as a leader in the testing and inspection industry, with a market size expanding to nearly RMB 430 billion in 2022, and expects industry growth of approximately 10% during the 14th Five-Year Plan period[33]. - The company aims to capture new economic growth points focused on green and low-carbon initiatives, leveraging opportunities in the global TIC market[35]. - The company is actively expanding into clean energy, environmental protection, and climate change sectors as part of its "2+X" strategy, which has led to unexpected growth in customer base[81]. - The company is leveraging the booming TIC market and its advantages in niche sectors to strengthen its long-term growth strategy[58]. Corporate Governance and Compliance - The company has adopted corporate governance standards to enhance management quality and protect shareholder interests[88]. - The company has established an Audit Committee in compliance with Listing Rules 3.21 and 3.22, consisting of three independent non-executive directors[142]. - The Audit Committee has reviewed the unaudited condensed consolidated interim financial statements for the period[143]. Employee and Operational Growth - As of June 30, 2023, the company employed 2,660 staff, an increase from 2,327 employees as of June 30, 2022[139]. - The group continues to strengthen its professional service capabilities and enhance its laboratory layout to support market expansion[126]. - The group has implemented refined operational management systems to improve internal management and resource allocation, effectively enhancing operational efficiency[104]. ESG Initiatives - The company emphasizes its ESG development strategy as a core direction, implementing three main execution dimensions: ESG+, ESG-Focused, and ESG-Friendly[128]. - The company aims to enhance its ESG management standards and actively fulfill social responsibilities to establish industry benchmarks[132]. - The company plans to continue its focus on ESG initiatives, with systematic investments yielding initial results in sustainable capabilities[104].

Company Overview - China Leon Inspection Holding Limited was listed on the Main Board of the Stock Exchange in 2016, becoming the first international leading inspection and testing company in Hong Kong[11]. - The company operates 63 branches and professional laboratories globally, providing services in over 50 types of commodities and natural resources[11]. - The company focuses on four key areas: commodity services, clean energy, environmental protection, and climate change, offering 24/7 one-stop services[11]. - The company has achieved a global network expansion, serving major trading ports in the Asia Pacific and emerging markets in South America and Africa[11]. - The company holds 18 categories of professional qualification certifications worldwide, enhancing its credibility in the industry[11]. Clean Energy and Environmental Services - In the clean energy sector, the company provides quality inspection services for wind power and solar power generation, enhancing the stability of power generation through regular operation and maintenance[12][14]. - The company provides environmental protection consulting and monitoring services, including environmental impact assessments and soil pollution investigations[16]. - LDAR services are crucial for detecting and repairing leaks in various industrial sectors, helping to control raw material costs and reduce environmental pollution[16]. - The company offers comprehensive solutions for climate change, including carbon peak and neutrality advisory services and ESG technical consulting[17]. - The clean energy business served 16 leading customers in the new energy sector, supporting major wind and solar power generation projects[92]. - The environmental protection business maintained a 100% one-time pass rate in expert assessments for environmental protection facilities projects[92]. - The company secured nine new industry-leading customers in the climate change sector, providing technology consulting for methane emission reduction[94]. Financial Performance - The Group recorded revenue of HK$944.0 million in 2022, representing a year-on-year increase of 15.3%[83]. - Profit for the year reached HK$104.8 million, reflecting a year-on-year increase of 16.9%[83]. - Profit attributable to owners of the Company was HK$69.4 million, marking a year-on-year increase of 39.3%[83]. - The company's revenue increased by 15.3% from approximately HK$818.8 million in 2021 to approximately HK$944.0 million in 2022[111]. - Profit attributable to owners of the company rose by 39.3% from approximately HK$49.8 million in 2021 to approximately HK$69.4 million in 2022[112]. Management and Governance - The management team consists of eight directors, including four executive directors and three independent non-executive directors[21]. - The chairman and CEO, Mr. Li Xiangli, has over 33 years of experience in the energy testing and inspection field[26]. - The acting-in-concert deed among Mr. Li, Ms. Zhang, and Mr. Liu was established on January 31, 2016, to support decisions on material matters[31]. - The company has complied with all code provisions of the Corporate Governance Code throughout the year ended December 31, 2022, except for a deviation from code provision C.2.1[156]. - The board consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors[160]. Strategic Focus and Development - The company aims to empower global industry leaders to achieve eco-friendly and low-carbon transformation through its services[11]. - The company emphasizes sustainable development and fairness in its operations, continuously expanding its professional service capacity in commodity services[11]. - The company aims to actively seek mergers and acquisitions opportunities in the global TIC market to provide sustainable momentum for business expansion[105]. - The company emphasizes a unique mergers and acquisitions approach that aligns corporate culture with long-term vision[104]. - The company aims to assist customers in achieving a green and low-carbon transition with a full spectrum of services[99]. Cash Flow and Financial Position - Cash and cash equivalents rose from HK$150.6 million in 2021 to HK$222.3 million in 2022, indicating a strong cash position[117][122]. - Net cash inflows from operating activities were approximately HK$176.4 million in 2022, up from HK$134.7 million in 2021, primarily due to higher revenue generation[118][123]. - The group had net cash outflows used in financing activities of approximately HK$37.0 million in 2022, compared to HK$18.5 million in 2021[119][124]. - The gearing ratio was zero in 2022, as cash and cash equivalents exceeded gross debt, compared to a gearing ratio of 6.51% in 2021[137][138]. - The group maintained a healthy liquidity position throughout the year, ensuring sufficient cash and cash equivalents to meet operational needs[129][131]. Compliance and Risk Management - The company faces foreign exchange risk primarily from cash and cash equivalents and convertible bonds denominated in currencies other than the functional currencies of its entities, mainly HKD and USD[148]. - The company continuously monitors accounts receivable balances and assesses the creditworthiness of existing and potential customers[147]. - The company does not require collateral for its credit transactions[147]. - The company has established mechanisms to ensure independent views and inputs are available to the board, which are reviewed annually for effectiveness[161]. Recognition and Awards - The company has been recognized as one of "Asia's 200 Best Under A Billion" by Forbes for two consecutive years, highlighting its governance and operational capabilities[105].

Financial Performance - Revenue reached HKD 944.0 million, an increase of 15.3% compared to HKD 818.8 million in 2021[4] - Profit attributable to equity holders was HKD 69.4 million, up 39.3% from HKD 49.8 million in 2021[4] - Basic earnings per share were approximately HKD 14.43, a 38.9% increase from HKD 10.39 in 2021[4] - Total comprehensive income for the year amounted to HKD 67.639 million, compared to HKD 111.345 million in the previous year[6] - The group reported a profit attributable to ordinary equity holders of HKD 69,397,000 for the year ended December 31, 2022, compared to HKD 49,836,000 in 2021, representing a 39.4% increase[23] - The basic earnings per share for the year ended December 31, 2022, was calculated based on 480,950,215 shares, slightly up from 479,590,963 shares in 2021[23] - The net profit for the year reached HKD 104.8 million, an increase of 16.9% compared to the previous year[135] - The profit attributable to the company's owners rose by 39.3%, from HKD 49.8 million in 2021 to approximately HKD 69.4 million in 2022[88] Revenue Breakdown - The group’s revenue from the Greater China region was HKD 266,710,000, while revenue from Singapore and other regions was HKD 56,204,000[17] - Total customer contract revenue for 2022 reached HKD 944,014,000, an increase of 15.3% from HKD 818,828,000 in 2021[39] - Revenue from testing services amounted to HKD 602,972,000, up 15.8% from HKD 520,304,000 in 2021[39] - Revenue from certification services was HKD 249,995,000, representing an increase of 11.8% compared to HKD 223,617,000 in 2021[39] - The company reported that one customer accounted for 12.3% of total revenue in 2022, down from 16.3% in 2021[42] Assets and Liabilities - Trade payables increased to HKD 43.622 million from HKD 39.513 million in 2021[7] - Total current liabilities decreased to HKD 181.560 million from HKD 197.797 million in 2021[7] - Total assets less current liabilities increased to HKD 578.528 million from HKD 468.334 million in 2021[7] - Non-current liabilities included lease liabilities of HKD 36.744 million, up from HKD 33.582 million in 2021[7] - Total equity attributable to equity holders increased to HKD 378.268 million from HKD 347.638 million in 2021[7] - Trade receivables increased to HKD 172.3 million, compared to HKD 134.8 million in 2021[140] - The net debt position improved, with a net debt of HKD (28.3 million) in 2022 compared to HKD 24.2 million in 2021[64] Dividends and Shareholder Returns - The proposed final dividend for the year ended December 31, 2022, is HKD 0.0272 per share, an increase from HKD 0.018 per share in 2021, pending shareholder approval[22] - The company proposed a final dividend of HKD 0.0272 per share for the year ended December 31, 2022, subject to approval at the annual general meeting[113] - The board recommended a bonus issue of one new share for every ten shares held, pending approval at the annual general meeting[114] Corporate Governance and Compliance - The company has been applying the revised standards since January 1, 2022, with no impact on its financial position or performance[11] - The group is currently reviewing its accounting policy disclosures to ensure compliance with the recent amendments to the International Financial Reporting Standards[14] - The company has complied with the Corporate Governance Code, except for a deviation regarding the separation of the roles of Chairman and CEO[118] - The audit committee has reviewed the consolidated financial statements for the year ended December 31, 2022[123] ESG and Sustainability Initiatives - The company is focusing on low-carbon reduction through its LDAR business, which is a key component for achieving carbon neutrality[52] - The company has established a comprehensive carbon neutrality solution to assist leading clients in achieving their corporate carbon neutrality commitments[53] - The ESG development strategy is a key focus, with the company enhancing its capabilities in green low-carbon and energy-saving services[84] - The company achieved a 100% one-time approval rate for environmental protection facility completion assessments during the year[82] - The company plans to accelerate investments aligned with its ESG strategy, focusing on potential acquisition targets with sustainable growth potential[84] - The company focuses on ESG initiatives, including clean energy, environmental protection, and climate change, contributing to the industry's low-carbon transformation[191] Operational Growth and Strategy - The company has successfully expanded its service network to emerging markets in South America and Africa, enhancing its international service capabilities[88] - The company has adopted a "2+X" development strategy, focusing on capturing quality targets in various segments and expanding into ESG areas such as clean energy and environmental protection[86] - The company continues to increase R&D investment to lead industry development through standard-setting and innovation in testing technologies[55] - The company aims to enhance operational efficiency and core competitive advantages in the TIC market[135] - The company is actively advancing inspection and testing technology innovations in the wind and photovoltaic industries[192] Financial Management - Cash and cash equivalents rose from HKD 150.6 million in 2021 to HKD 222.3 million in 2022, indicating a strong cash position[60] - The company maintains a cautious financial policy, ensuring sufficient cash and cash equivalents to manage liquidity risks[92] - The leverage ratio was zero as cash and cash equivalents exceeded total liabilities, compared to 6.51% in 2021[95] - The company continues to monitor accounts receivable and assess the creditworthiness of existing and potential clients[96]

Financial Performance - Revenue for the six months ended June 30, 2022, was HK$431,761,000, representing an increase of 10.7% from HK$389,875,000 in the same period of 2021[14]. - Gross profit for the same period was HK$181,959,000, up from HK$164,182,000, indicating a growth of 10.9%[14]. - Profit for the period was HK$45,565,000, a decrease of 7.5% compared to HK$49,039,000 in the prior year[14]. - Total comprehensive income for the period was HK$40,177,000, a decrease of 24.2% from HK$53,024,000 in the previous year[18]. - Earnings per share attributable to ordinary equity holders increased to HK8.19 cents, up 9.6% from HK7.47 cents in the prior year[18]. - The company reported a profit for the period of HK$35,822,000, which is a decrease from HK$45,565,000 in the prior year, showing a decline of around 21.5%[32]. - The total profit attributable to owners of the Company for the period was HK$35,822,000, reflecting an increase of 10.3% from HK$32,492,000 in the same period of 2021[77]. Expenses and Costs - Administrative expenses increased to HK$112,979,000 from HK$87,775,000, reflecting a rise of 28.6%[14]. - Selling and distribution expenses rose to HK$14,236,000 from HK$12,720,000, an increase of 11.9%[14]. - The company reported finance costs of HK$2,153,000, slightly down from HK$2,303,000, a decrease of 6.5%[14]. - Current income tax expense for the six months ended June 30, 2022, was HK$8,997,000, a decrease of 20.6% compared to HK$11,333,000 for the same period in 2021[69]. - The depreciation of property, plant, and equipment increased to HK$19,074,000 for the six months ended June 30, 2022, compared to HK$15,675,000 in the previous year, reflecting a rise of 21.5%[67]. - Research and development costs for the current period were HK$11,378,000, significantly higher than HK$4,995,000 in the same period of 2021, indicating a growth of 128.5%[67]. Assets and Liabilities - Non-current assets decreased to HK$192,423,000 from HK$204,969,000, reflecting a decline of 6.1%[23]. - Current assets increased to HK$371,099,000, compared to HK$326,344,000, representing a growth of 13.7%[23]. - Cash and cash equivalents rose to HK$183,342,000, up 21.8% from HK$150,636,000[23]. - Net current assets improved to HK$177,341,000, an increase of 33.5% from HK$132,879,000[23]. - The Group's total assets as of June 30, 2022, included non-current assets classified at HK$46,209,000, an increase from HK$36,585,000 at the end of 2021[100]. - The Group's trade payables decreased to HK$34,491,000 as of June 30, 2022, down from HK$39,513,000 at the end of 2021, representing a decline of approximately 12.8%[107]. Revenue Breakdown - Testing services generated revenue of HK$279,920,000, up from HK$249,575,000, reflecting a growth of 12.1%[58]. - Surveying services revenue increased to HK$111,025,000 from HK$104,102,000, representing a growth of 6.5%[58]. - Witnessing and ancillary services revenue rose to HK$40,816,000, compared to HK$36,198,000, marking an increase of 12.5%[58]. - Revenue from Greater China was HK$289,913,000, up from HK$216,562,000, indicating a significant growth of 33.8%[58]. - Overseas revenue decreased to HK$141,848,000 from HK$173,313,000, a decline of 18.1%[58]. Share Options and Awards - The total number of share options granted was 42,996,000 shares, with an average exercise price of HK$1.99 per share[139][141]. - The exercise price of share options is subject to adjustment in the event of rights or bonus issues, or other similar changes in the company's share capital[140][142]. - The share options granted to directors include 1,100,000 shares at an exercise price of HK$1.285, valid until July 22, 2023[137]. - The share options granted to employees include 6,930,000 shares at an exercise price of HK$2.14, valid from July 15, 2022, to July 14, 2027[141]. - The total number of share options exercised during the period was 0, indicating no options were exercised in the first half of 2022[141]. - The total number of share options that lapsed during the period was also 0, showing no options expired in the first half of 2022[141]. - The weighted average exercise price for the share options remained at HK$1.99 throughout the reporting period[139]. Corporate Governance and Compliance - The condensed consolidated interim financial statements for the six months ended June 30, 2022, have been prepared in accordance with International Accounting Standards ("IAS") 34[38]. - The Group's functional currency is Renminbi ("RMB") and the presentation currency was changed from RMB to Hong Kong dollars ("HK$") for better alignment with its listing in Hong Kong[38]. - The Group applied several amendments to International Financial Reporting Standards ("IFRSs") for the first time, effective from January 1, 2022, including amendments to IFRS 3, IAS 16, and IAS 37[41]. - The amendments to IFRS 3 clarify that contingent assets do not qualify for recognition at the acquisition date, which had no impact on the Group's interim financial statements[45]. - The amendments to IAS 16 prohibit entities from deducting proceeds from the sale of items produced while bringing an asset to the location and condition necessary for it to be capable of operating[45]. Strategic Initiatives and Future Outlook - The company aims to enhance its market presence and explore new strategies for growth in the upcoming periods[14]. - The Group maintained stable performance despite challenges from intensified international geopolitical conflicts and the ongoing global pandemic, consolidating its leading position in niche markets[185]. - The Group expanded its international presence to 61 branches and laboratories across countries including Singapore, Indonesia, Malaysia, India, Pakistan, Australia, Brunei, Bangladesh, Argentina, and South Africa[186]. - The Company secured 5 new projects in the clean energy business segment, contributing to the gradual eco-friendly and low-carbon transformation of the electric energy system[195]. - The Company is committed to ESG-oriented development as a key priority in its "2+X" development strategy, enhancing management structure and policies for ESG initiatives[187].

Company Overview - China Leon Inspection Holding Limited reported a comprehensive service network with 58 branches and professional laboratories globally, enhancing its market presence in the Asia-Pacific region[13]. - The company was listed on the Main Board of the Stock Exchange in 2016, marking its significance in the international inspection and testing market[13]. - The company is positioned as a pioneer in the Chinese TIC industry, being the first to complete a global network and serve major trading ports[13]. Business Growth and Strategy - The company achieved organic growth in both conventional and ESG-related businesses, focusing on new energy, clean energy, and environmental protection services[13]. - The company aims to expand its service scope continuously, leveraging its leading advantages in different segments and economies of scale[13]. - The Group maintained solid revenue growth during 2021 despite a challenging market environment, focusing on high-quality and stable development[80]. - The Group's revenue increased by 26% from approximately HK$649.9 million in 2020 to approximately HK$818.8 million in 2021[116]. - The Group's "2+X" growth strategy led to significant revenue growth, with new divisions established in clean energy and environmental protection[118]. Environmental and Clean Energy Services - The clean energy segment includes quality inspection services for wind power and solar power generation, improving the stability of power generation through regular operation and maintenance[17]. - The company is expanding its clean energy sector, focusing on wind and solar power, and providing quality inspection services for materials and components used in these industries[19]. - Environmental protection services encompass consulting and monitoring, including environmental impact assessments and soil pollution investigations, serving various industrial sectors[18]. - The environmental protection services include consulting and testing, covering areas such as soil pollution assessment and wastewater testing, serving various industrial sectors[20]. - The company aims to enhance its service offerings in low-carbon solutions and environmental protection, aligning with global sustainability goals[25]. Research and Development - The company emphasizes its strong R&D and innovation capabilities, which are crucial for maintaining its competitive edge in the industry[13]. - The company increased investment in R&D and talent development to fortify its competitive position[92]. Financial Performance - Profit for the year rose by 12.1% from approximately HK$80.0 million in 2020 to approximately HK$89.7 million in 2021[125]. - Total cash and cash equivalents rose from HK$93.7 million in 2020 to HK$150.6 million in 2021, indicating a strong cash position[134]. - Net cash inflows from operating activities increased from approximately HK$115.4 million in 2020 to HK$134.7 million in 2021, primarily due to higher revenue generation[135]. - The Group's net debt decreased to HK$24.22 million in 2021 from HK$52.19 million in 2020, representing a reduction of approximately 53.6%[151]. Corporate Governance - The board consists of eight directors, including four executive directors, ensuring a diverse leadership structure[29]. - The Company is committed to maintaining high standards of corporate governance and compliance, as evidenced by the qualifications of its board members[75]. - The Company has established a framework for securities transactions to uphold ethical standards among its Directors and employees[200]. - The Company emphasizes transparency and accountability in its operations through the adherence to the Model Code[200]. Leadership and Management - The chairman and CEO, Mr. Li Xiangli, has over 32 years of experience in the energy testing and inspection field, contributing to the company's strategic planning[34]. - The Company has a strong management team with extensive experience in the energy sector, including coal trading and inspection[41][50]. - The management team has a diverse background in both the public and private sectors, contributing to the Company's strategic direction[58]. Market Position and Future Outlook - The global TIC industry is expected to grow at a compound annual growth rate (CAGR) of 3.6% from 2020 to 2025, with the market size projected to exceed €250 billion by 2025[110]. - The Asia-Pacific TIC market is anticipated to have the largest market share and highest growth rate during the forecast period[110]. - The next three years are identified as a critical period for consolidating the Group's international credibility and influence in the ESG field[86].

HAMA 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 Interim Report 中報 ２０２１ 期 2 Corporate Information 公司資料 5 Other Comprehensive Income 59 | --- | --- | |-------------------------------------------------------------------------------|------------| | | | | | | | Condensed Consolidated Statement of Profit or Loss | and | | 簡明綜合損益及其他全面收益表 | | | Condensed Consolidated Statement of Financial 簡明綜合財務狀況表 | Position ...

HATH 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 202 Annual Report 年 | --- | --- | --- | |------------------------------------------------------------|------------------------|----------| | | | Contents | | | | 目錄 | | | | | | Corporate Information | 公司資料 | 2 | | Profile of Directors and Senior Management | 董事及高級管理人員簡介 | 5 | | Corporate Profile | 公司概況 | 13 | | Chairman's Statement | 主席報告 | 14 | | Manageme ...

H域H 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 02 Interim Report 中期報告 Contents 目錄 2 Definitions 釋義 4 Corporate Information 公司資料 7 Management Discussion and Analysis 管理層討論與分析 13 Additional Information 補充資料 24 Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 簡明綜合損益及其他全面收益表 25 Condensed Consolidated Statement of Financial Position 簡明綜合財務狀況表 27 Condensed Consolidat ...

HAQAH 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 2019 Annual Report 年報 Contents 目錄 | --- | --- | |------------------------------------------------------------|------------------------| | | | | Definitions | 釋義 | | Corporate Profile | 公司概況 | | Corporate Information | 公司資料 | | Financial Highlights | 財務摘要 | | Financial Summary | 財務概要 | | Chairman's Statement | 主席報告 | | Profile of Directors and Senior Manag ...

Financial Performance - The interim report covers the six months ended June 30, 2019, providing a comprehensive financial overview [5] - For the six months ended June 30, 2019, the Group's revenue increased by 68.7% to approximately RMB 171.8 million, up from RMB 101.9 million in the same period of 2018 [42] - The gross profit for the same period increased by 49.9% to approximately RMB 81.3 million, while the gross profit margin decreased from 53.2% to 47.3% [47] - The Group's profit for the Period increased by 73.4% from approximately RMB 7.4 million for the six months ended 30 June 2018 to approximately RMB 12.7 million in the Period, driven by a significant rise in overall business volume [50] - Revenue for the six months ended June 30, 2019, was RMB 171,847,000, an increase of 68.5% compared to RMB 101,895,000 for the same period in 2018 [162] - Gross profit for the same period was RMB 81,269,000, representing a gross margin of 47.3% [162] - Profit for the period was RMB 12,746,000, up 73.5% from RMB 7,352,000 in the prior year [162] - Total comprehensive income for the period was RMB 13,789,000, compared to RMB 7,809,000 in the previous year, reflecting a growth of 76.5% [162] - Basic earnings per share for the period was RMB 3.34 cents, an increase from RMB 2.86 cents in the same period last year [162] Market Expansion and Strategic Initiatives - The company reported a significant expansion into the South Asia market as part of its strategic plan under the "Belt & Road Initiative" [27] - The company aims to leverage its existing infrastructure to support future growth and market expansion initiatives [26] - In May 2019, China Leon acquired Saybolt (Singapore) Pte Ltd., expanding its laboratory testing and inspection services in Singapore, Malaysia, and Indonesia [30] - In June 2019, China Leon won the bid for the overseas supervision business of Datang Hong Kong, enhancing its overseas business operations [31] - The company plans to enhance service capabilities and expand coverage through investments, joint ventures, and acquisitions, with a focus on globalization and diversification [97] - The company aims to provide comprehensive quality management services covering the entire supply chain, aligning with China's national strategy for high-quality development [37] Financial Position and Assets - As of June 30, 2019, the Group had cash and cash equivalents of RMB 84.6 million, indicating a strong financial position to support operations [60] - Trade and bills receivables increased significantly from approximately RMB 42.3 million to RMB 82.2 million, reflecting a substantial growth in business scale [58] - Total assets less current liabilities amounted to RMB 238,429,000, compared to RMB 211,193,000 at the end of 2018 [166] - Non-current assets increased to RMB 209,449,000 from RMB 166,819,000, reflecting a growth of 25.5% [164] - The company’s retained profits increased to RMB 95,911,000 as of June 30, 2019, from RMB 86,549,000 in the previous year, which is an increase of about 10.0% [169] Corporate Governance and Compliance - The report emphasizes the importance of maintaining compliance with the Listing Rules of the Hong Kong Stock Exchange [5] - The company has complied with the corporate governance code provisions, except for the deviation regarding the roles of chairman and CEO being held by the same individual [107] - The audit committee has reviewed the unaudited interim condensed consolidated statements for the period [112] - The Company has established an audit committee in accordance with the Listing Rules to ensure high standards of corporate governance [117] - The Board confirmed compliance with the "Standard Code" during the reporting period [115] Employee and Operational Growth - The Group had a total of 1,260 employees as of June 30, 2019, compared to 841 employees as of June 30, 2018, reflecting a growth of approximately 50% [82] - Selling, distribution and administrative expenses increased from approximately RMB 41.2 million to approximately RMB 57.3 million, primarily due to higher costs from overseas acquisitions and increased R&D expenditure [53] Financial Instruments and Risks - The Group's credit risk is primarily managed through credit verification procedures for all customers, ensuring no significant bad debt risk is faced [76] - The Group is exposed to foreign currency risk primarily from transactions denominated in Hong Kong dollars and United States dollars [78] - The maximum credit risk associated with the Group's financial assets is equivalent to their carrying amount [76] Accounting Policies and Standards - The Group has applied IFRS 16 for the first time in the interim period, which supersedes IAS 17 "Leases" and related interpretations [182] - The application of new and amended IFRSs has had no material impact on the Group's financial performance and positions for the current and prior periods [184] - The accounting policies used in the interim financial statements are consistent with those presented in the annual financial statements for the year ended December 31, 2018 [182] - Lease liabilities include fixed payments, variable payments based on indices, residual value guarantees, and penalties for terminating leases [198] Share Capital and Ownership - The stock code for China Leon Inspection Holding Limited is 1586, indicating its listing on the Hong Kong Stock Exchange [25] - As of June 30, 2019, the issued share capital of the Company was 400,000,000 shares [131] - The interests of Directors and Chief Executive in shares included 225,810,000 shares held jointly by Mr. LI Xiangli, Ms. ZHANG Aiying, and Mr. LIU Yi, representing approximately 56.45% of the issued share capital of the Company [122][126] - The Company had granted a total of 11,000,000 Share Options under the Share Option Scheme, with 850,000 lapsing [153] - The Share Option Scheme aims to reward contributions and retain valuable human resources for the Group [155]