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]

Company Overview - China Leon Inspection Holding Limited is the first PRC third-party inspection and testing service provider listed on the Hong Kong Stock Exchange, with stock code 1586[10]. - The company holds the largest market share in China's coal testing and inspection industry, maintaining long-term relationships with reputable customers[12]. - The company offers a comprehensive range of services, including inspection and testing for coal quality assurance, surveying for contract fulfillment, and ancillary services to prevent dishonest activities[11]. - China Leon is committed to providing world-class services through strict standards and industry-leading technical equipment[10]. - The company has a vast service center network located at major coal-trade ports in China, enhancing its service capabilities[12]. - The company aims to become the world's leading international third-party independent inspection and testing service provider[13]. Strategic Plans and Development - The strategic plans include consolidating the leading position in the coal testing industry, upgrading service center networks, strengthening research and development, and pursuing strategic acquisitions[13]. - The company plans to strengthen its service center network and enhance R&D efforts as part of its strategic direction[15]. - The company is focused on expanding its service coverage through strategic investments and acquisitions[13]. - The Group plans to further expand into upstream and downstream related markets for commodities and innovate in supply chain quality management in 2019[37]. - The establishment of service centers in upstream coal production areas and inland downstream areas reflects the Group's strategy to explore new business models[30]. - The Group's expansion into import and export inspection services now includes minerals, petrochemicals, and agricultural products, marking the beginning of diversified business development[30]. Financial Performance - Revenue for 2018 amounted to approximately RMB233.8 million, representing an increase of 16.4% from approximately RMB200.9 million recorded in 2017[17]. - Gross profit for 2018 amounted to approximately RMB122.9 million, representing an increase of 11.0% from approximately RMB110.7 million recorded in 2017[17]. - Profit attributable to owners of the parent for 2018 amounted to approximately RMB14.0 million, representing a decrease of 60.7% from approximately RMB35.6 million recorded in 2017[17]. - Net profit for 2018 was RMB4.9 million, representing a decrease of 85.9% compared to 2017[26]. - Total assets as of 31 December 2018 were RMB328.9 million, an increase from RMB254.4 million in 2017[21]. - Total liabilities as of 31 December 2018 were RMB131.9 million, an increase from RMB56.1 million in 2017[21]. - The gross profit margin decreased from 55.1% in 2017 to 52.6% in 2018[90]. - The Group's profit for the year decreased by 85.9%, from approximately RMB34.7 million in 2017 to approximately RMB4.9 million in 2018, primarily due to the expansion of its testing and inspection business through overseas acquisitions[126]. Research and Development - Significant investment in research and development led to the automation of coal testing processes, including the development of an automated coal testing laboratory and a mobile standardized coal laboratory[31]. - The new information system "LEON LIMS 1.0" has improved operational efficiency by enabling informatization management throughout the entire coal inspection process[31]. - The company emphasizes the importance of technological improvements and R&D collaboration to achieve competitive advantages in the market[111]. - Continued investment in research and development led to the upgrade of traditional coal testing to fully automated testing systems, enhancing service capabilities[96]. Leadership and Governance - The Board consists of eight Directors, including four executive Directors, one non-executive Director, and three independent non-executive Directors[50]. - Mr. Li Xiangli, aged 56, is the Chairman, CEO, and an executive Director, responsible for strategic planning and overall management since his appointment on January 13, 2016[52]. - The Company has a strong leadership team with extensive industry experience, enhancing its strategic capabilities[52][56]. - The Board's composition includes a balance of executive and independent directors, ensuring effective governance[50]. - The roles of chairman and CEO are held by the same individual, Mr. LI Xiangli, which deviates from the CG Code provision A.2.1[178]. - The Chairman and CEO, Mr. Li Xiangli, holds both positions, which the board believes enhances decision-making efficiency and opportunity capture[181]. Market Environment - The coal testing and inspection industry is expected to develop steadily due to tightened regulations and a favorable market environment[24]. - The demand for power generation is expected to grow more rapidly in 2019, while coal consumption and trading volume may see slight growth[87]. - The industry and market environment in 2019 is projected to be favorable for the future business development of the company[87]. Operational Efficiency - The company plans to enhance service capabilities through strategic acquisitions and joint ventures, focusing on opportunities that can improve service coverage[115]. - Future strategies include leveraging technology and automation to improve service capabilities and customer experience, aiming to increase market share[101]. - The Group's finance costs increased by 281.4% from approximately RMB0.7 million in 2017 to RMB2.6 million in 2018 due to costs incurred from an interest-bearing Secured Guaranteed Note issued in 2018[126]. Financial Position - The Group's financial position remains strong, with sufficient resources to support operations and meet foreseeable capital expenditures[146][150]. - Total debt increased significantly from RMB 17,742,000 in 2017 to RMB 76,085,000 in 2018, representing a growth of 328.5%[161]. - The gearing ratio rose sharply from 8.9% in 2017 to 38.6% in 2018, indicating a higher level of financial leverage[161].