Financial Performance - The company's revenue for the year ended December 31, 2022, decreased by 35.7% to approximately RMB 926.6 million from RMB 1,441 million in the previous year[10]. - The net profit attributable to shareholders for the year was approximately RMB 46.2 million, down from RMB 106.9 million in the previous year[19]. - The gross profit margin for the year was 15.8%, compared to 18.1% in the previous year[19]. - The total assets decreased to RMB 1,334.2 million from RMB 1,391.4 million, while total liabilities decreased to RMB 688.3 million from RMB 831.7 million[9]. - The total revenue for the year ended December 31, 2022, was approximately RMB 926.6 million, a decrease of RMB 514.4 million or 35.7% compared to RMB 1,441 million in 2021[42]. - Gross profit for the year was approximately RMB 146.3 million, with a gross margin of 15.8%, down from 18.1% in 2021, primarily due to increased purchasing costs[68]. - The group recorded a profit attributable to equity holders of approximately RMB 46.2 million for the year ended December 31, 2022, with basic earnings per share of RMB 5.42, a decrease from RMB 106.9 million or RMB 12.54 per share in 2021[70]. - Sales and distribution costs decreased to approximately RMB 31.6 million in 2022 from RMB 42.3 million in 2021, aligning with the reduction in revenue[71]. - Administrative expenses were approximately RMB 77.1 million in 2022, down from RMB 92.9 million in 2021, primarily due to a reduction in research and development costs[72]. - Research and development costs amounted to approximately RMB 41.2 million in 2022, down from RMB 60 million in 2021, with ongoing efforts to maintain long-term competitiveness and develop new technologies and products[72]. Market and Product Development - The company launched a fully automated digital production line for functional films in July 2022, enhancing production capacity and management[25]. - The company became a key account supplier for Decathlon in December 2022, marking a new phase in their partnership[32]. - Revenue from material products was RMB 841.6 million, accounting for 90.8% of total revenue, while revenue from building materials was RMB 85 million, accounting for 9.2%[61]. - New product launches included the "Super Core" flooring and PET wallboard products, expanding the range of environmentally friendly building materials[50]. - The company plans to continue its product innovation strategy, focusing on new space fabric materials and airtight materials as future main business areas[57]. - The company aims to adjust its material product structure to maintain competitiveness in a challenging global market environment[66]. - The company is committed to customer-centric market development, aiming to create value for customers and return benefits to shareholders and society[57]. - The company is committed to developing new materials and actively researching new products to stabilize its new materials business[139]. - The company has completed the first phase of the Fuzhou Industrial Park construction, enabling partial production operations and creating a new materials technology research and development advantage[140]. - The company is focused on cultivating a high-level technical talent team to enhance its competitive edge and promote sustainable development[140]. Strategic Initiatives and Partnerships - The management team plans to continue collaborating with domestic and international institutions to innovate eco-friendly materials and expand business development in 2023[35]. - The company has established partnerships with universities and research institutions to enhance its technological capabilities and product development[50]. - The group is actively responding to national policies and is prepared to address various risk challenges through strategic deployment and maintaining flexibility in operations[120]. - The group plans to continue its strategic layout focusing on sales growth, product positioning, technological innovation, organizational restructuring, and team building[130]. - The company aims to enhance its digital strategy to drive overall efficiency and competitiveness in the market[25]. - The company will focus on both domestic and international markets by participating in trade shows and visiting clients to expand its market presence[139]. Governance and Compliance - The company emphasizes the importance of high corporate governance standards to enhance performance, transparency, and accountability[135]. - The company has established a disclosure policy to guide directors and senior management in handling confidential information and responding to inquiries[128]. - All independent non-executive directors have confirmed their independence in accordance with the listing rules, ensuring effective governance[129]. - The company is committed to ensuring compliance with all legal and regulatory requirements through its governance policies[187]. - The risk management framework includes monitoring and reviewing the effectiveness of measures in place[191]. - The audit committee is responsible for overseeing the relationship with external auditors and reviewing the group's interim and annual performance[156]. - The remuneration committee is tasked with reviewing and approving significant matters related to the company's share plans[159]. - The nomination committee evaluates candidates based on criteria including character, integrity, and diversity policies, ensuring a transparent selection process[183]. Employee and Diversity Initiatives - The company is committed to improving employee quality, capability, and skills through ongoing training and competitive compensation packages[115]. - The board consists of five male directors and one female director as of December 31, 2022, reflecting a gender ratio of approximately 83.33% male to 16.67% female[188]. - Employee structure as of December 31, 2022: 339 male employees (68.62%) and 155 female employees (31.38%)[189]. - The company has adopted a diversity policy for board members, aiming to achieve gender balance and set measurable targets[188]. - The company plans to establish numerical targets and timelines to improve gender distribution on the board to align with industry averages[188].

Financial Performance - Total revenue decreased by 35.7% to RMB 926.6 million in 2022 from RMB 1,441.0 million in 2021[18] - Gross profit fell by 43.8% to RMB 146.3 million in 2022 compared to RMB 260.5 million in 2021[18] - The annual profit attributable to the company's owners was RMB 46.2 million, down from RMB 106.9 million in the previous year[18] - Basic earnings per share decreased to RMB 5.42 from RMB 12.54 in 2021[18] - The pre-tax profit was RMB 48.9 million, down from RMB 117.8 million in the previous year[20] - Other income increased to RMB 23,822,000 in 2022, compared to RMB 10,941,000 in 2021, marking a growth of 117.0%[31] - The company reported a profit before tax of RMB 48,858,000 for 2022, down 58.6% from RMB 117,816,000 in 2021[38] - Basic earnings per share for the year were approximately RMB 54,200,000, a decrease of 56.7% from RMB 106,932,000 in 2021[40] Revenue Breakdown - Revenue from material products was RMB 841.6 million, down from RMB 1,348.0 million in 2021[13] - Revenue from building materials was RMB 84.9 million, compared to RMB 93.1 million in the previous year[13] - Revenue from the Chinese market was RMB 622.7 million, a decrease from RMB 1,135.9 million in 2021[13] - Revenue from material products reached approximately RMB 841.6 million, accounting for about 90.8% of total revenue, down 37.6% from RMB 1,347.9 million in 2021[82] - Revenue from building materials was approximately RMB 85.0 million, representing about 9.2% of total revenue, compared to RMB 93.1 million or 6.5% in 2021[82] - Domestic sales continued to be the main source of revenue, accounting for approximately 67.2% of total revenue in 2022, down from 78.8% in 2021[78] - Export sales accounted for approximately 32.8% of total revenue in 2022, up from 21.2% in 2021[78] Cost and Expenses - The cost of goods sold for the year was RMB 780,301,000, down 33.9% from RMB 1,180,547,000 in 2021[34] - Administrative expenses were approximately RMB 77.1 million, down from RMB 92.9 million in 2021, primarily due to reduced research and development costs[87] - Financial costs were approximately RMB 13.1 million, a decrease from RMB 15.7 million in 2021, mainly due to lower bank borrowing rates[90] - Gross profit for the review year was approximately RMB 146.3 million, with a gross margin of 15.8%, down from 18.1% in 2021, primarily due to increased purchasing costs[98] Assets and Liabilities - Non-current assets increased to RMB 766,882,000 in 2022 from RMB 607,611,000 in 2021, representing a growth of 26.2%[21] - Trade receivables decreased significantly to RMB 181,183,000 in 2022 from RMB 327,857,000 in 2021, a decline of 44.7%[21] - Inventory levels decreased to RMB 181,750,000 in 2022, down 10.8% from RMB 203,775,000 in 2021[21] - The total current liabilities decreased to RMB 479,093,000 in 2022 from RMB 784,732,000 in 2021, a reduction of 38.9%[21] - The total current assets as of December 31, 2022, were approximately RMB 567.3 million, compared to RMB 783.8 million in 2021, while total current liabilities were approximately RMB 479.1 million, down from RMB 784.7 million[104] - The total trade payables and notes payable decreased to RMB 276,138 thousand in 2022, down 43.3% from RMB 486,664 thousand in 2021[59] Research and Development - The company’s research and development costs were RMB 41,166,000 in 2022, down 31.5% from RMB 59,976,000 in 2021[34] - Research and development costs were approximately RMB 41.2 million, down from RMB 60 million in 2021, indicating a focus on maintaining long-term competitiveness[115] - The company plans to continue resource allocation for R&D activities in its Fuzhou and Shanghai facilities to develop new technologies and products[115] Corporate Governance and Strategy - The company did not recommend the payment of dividends for the year ended December 31, 2022, consistent with the previous year[49] - The company has adopted a strategy to enhance the protection of intellectual property rights, applying for more technology patents to strengthen its innovative capabilities[138] - The company has no significant acquisitions or disposals of subsidiaries, associates, or joint ventures as of December 31, 2022[153] - The company plans to achieve digitalization and efficient collaboration across its business operations in phases[130] Social Responsibility and Workforce - The company is actively participating in corporate social responsibility initiatives, including rural revitalization and educational poverty alleviation activities[148] - The company employed 510 staff as of December 31, 2022, compared to 471 in 2021, indicating a stable workforce[127] Other Financial Information - The company received government grants for new product development and environmental initiatives, with no specific conditions attached[14] - The company reported a tax expense of RMB 4,339 thousand in 2022, down from RMB 11,631 thousand in 2021[47] - The company’s cash flow management appears to be improving, as evidenced by the reduction in trade receivables and payables[45][59] - The company continues to focus on strict monitoring of overdue receivables, with management regularly reviewing outstanding balances[44] - The company recorded a profit attributable to equity holders of approximately RMB 46.2 million, with basic earnings per share of RMB 5.42, compared to RMB 106.9 million or RMB 12.54 per share in 2021[85] - The company actively participated in supplying building materials for the Beijing Winter Olympics and developed products for various sports venues[80] - The construction of the Fuzhou Industrial Park has completed its first phase, with some product projects already in operation, creating a new materials technology R&D advantage[130] - As of December 31, 2022, the company's interest-bearing bank borrowings amounted to RMB 302 million, an increase from RMB 193.8 million in the previous year[152] - The total bank financing reached approximately RMB 927.7 million, compared to RMB 313.6 million in the previous year[152] - The company reported a total asset net value of RMB 645.9 million as of December 31, 2022, up from RMB 559.7 million the previous year[163] - The net debt ratio as of December 31, 2022, was 24.9%, compared to 19.0% as of December 31, 2021[121]

Revenue Performance - The company's revenue for the six months ended June 30, 2022, was approximately RMB 530.7 million, a decrease of about RMB 191 million or 26.5% compared to RMB 721.7 million in the same period last year[14]. - Revenue from material products was approximately RMB 486.8 million, accounting for about 91.7% of total revenue, a decrease of approximately 28.2% from RMB 677.8 million in the previous year[23]. - Domestic sales contributed approximately 70.8% of total revenue, down from 79.3% in the previous year, while export sales accounted for about 29.2%, up from 20.7%[14]. - Revenue for the six months ended June 30, 2022, was RMB 530,658,000, a decrease of 26.5% compared to RMB 721,675,000 for the same period in 2021[79]. - Revenue from the Chinese market was RMB 375,950,000, down 34.3% from RMB 572,008,000 in the previous year[83]. - Material products generated revenue of RMB 486,838,000, a decline of 28.2% from RMB 677,799,000 in the prior year[83]. Profitability and Financial Performance - Gross profit for the period was approximately RMB 79.7 million, with a gross margin of 15.0%, down from 18.4% in the previous year, primarily due to increased raw material costs[26]. - The group recorded a profit attributable to owners of the company of approximately RMB 23.7 million, or basic earnings per share of RMB 2.78, down from RMB 49.7 million or RMB 5.83 per share in the same period last year[38]. - Operating profit decreased to RMB 32,221,000, a decline of 49.1% from RMB 63,298,000 in the previous year[59]. - Net profit for the period was RMB 23,110,000, down 53.3% from RMB 49,439,000 in 2021[59]. - Basic earnings per share for the six months ended June 30, 2022, were RMB 2.78, down from RMB 5.83 in the same period of 2021[62]. Costs and Expenses - Research and development costs amounted to approximately RMB 22.5 million, representing 4.2% of revenue, a decrease from RMB 33.6 million or 4.7% of revenue in the previous year[33]. - Financial costs for the period were approximately RMB 7.9 million, an increase from RMB 7.5 million in the previous year, mainly due to increased interest-bearing borrowings[34]. - Total borrowing costs for the period were RMB 9,083,000, an increase from RMB 7,457,000 in the prior year[87]. - The company's profit before tax for the six months ended June 30, 2022, was impacted by an increase in depreciation expenses, which rose to RMB 33,739,000 from RMB 27,734,000 in the previous year[90]. Assets and Liabilities - Total equity as of June 30, 2022, was approximately RMB 589.6 million, an increase of 5.3% from RMB 559.7 million as of December 31, 2021[40]. - The group's total current assets were approximately RMB 681 million, while total current liabilities were approximately RMB 624.4 million, resulting in a net current asset position of approximately RMB 56.6 million[41]. - Non-current liabilities increased significantly to RMB 105,843 thousand as of June 30, 2022, compared to RMB 46,927 thousand at the end of 2021, representing a growth of 125%[67]. - The company's total liabilities increased to RMB 105,843 thousand, which is a significant rise compared to the previous year, reflecting a strategic shift in financing[67]. Cash Flow and Investments - Cash generated from operating activities decreased to RMB 8,686 thousand for the six months ended June 30, 2022, down 87.5% from RMB 69,825 thousand in the same period of 2021[72]. - The company reported a net cash outflow from investing activities of RMB 5,853 thousand, a significant improvement from RMB 108,642 thousand in the previous year[72]. - The total cost of acquiring properties, plants, and equipment for the six months ended June 30, 2022, was RMB 35,663,000, a decrease of 7.3% from RMB 38,411,000 for the same period in 2021[98]. Strategic Initiatives and Developments - The construction of the Si Jia Fuzhou Smart Industrial Park is progressing, which will help optimize the global market layout and expand market share[20]. - The company has launched a fully automated digital production line for functional films, enhancing competitiveness and production advantages[13]. - The company is involved in a national key research and development program aimed at improving key basic material technologies and promoting new product innovation[9]. - The company plans to expand its core competitiveness by developing new high-performance products and special materials for unique scenarios[56]. - The establishment of the Sijia (Fuqing) Smart Industrial Park aims to create a new materials production base, enhancing R&D capabilities and efficiency[57]. - The company is focusing on digital development to achieve sustainable and efficient supply chain management[57]. - The company aims to cultivate high-level technical talent to enhance its competitive edge and promote sustainable development[57]. Shareholder Information - As of June 30, 2022, Mr. Lin Sheng-Hsiung holds 410,886,000 shares, representing approximately 48.19% of the company's total issued share capital[125]. - Major shareholders include Haolin International Holdings Limited and Mr. Lin Sheng-Hsiung, both holding 48.19% of the shares[137]. - The company has a share option scheme in place since April 8, 2010, to incentivize employees and attract talent[128]. - The total number of shares that may be issued under the share option scheme cannot exceed 10% of the issued shares as of April 29, 2010[128]. - The company did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year[95]. Employment and Workforce - The group employed a total of 498 employees as of June 30, 2022, down from 536 employees as of December 31, 2021[51]. Compliance and Governance - The audit committee, composed of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2022, and found them compliant with applicable accounting standards[142]. - The company has not applied any new accounting standards that have been issued but not yet effective, and is currently assessing their potential impact[78].

Financial Performance - The company's revenue increased by 77.4% from approximately RMB 812.1 million to approximately RMB 1,441.0 million for the year ended December 31, 2021[37]. - The net profit attributable to shareholders rose to approximately RMB 106.9 million, compared to RMB 45.0 million in the previous year[25]. - The gross profit margin decreased to 18.1% from 23.2%[27]. - Total revenue for the year ended December 31, 2021, was approximately RMB 1,441 million, an increase of RMB 628.9 million or 77.4% compared to RMB 812.1 million in 2020[50]. - Material products generated revenue of approximately RMB 1,347,900,000, accounting for about 93.5% of total revenue, with an increase of 81.3% from RMB 743,400,000 in 2020[64]. - Gross profit for the year was approximately RMB 260,500,000, with a gross margin of 18.1%, down from 23.2% in the previous year[67]. - The company recorded a profit attributable to equity holders of approximately RMB 106,900,000, with basic earnings per share of RMB 12.5 cents, compared to RMB 45,000,000 or RMB 5.3 cents per share in 2020[71]. Assets and Liquidity - Cash and cash equivalents increased to RMB 78.0 million from RMB 34.9 million[34]. - Total assets grew to RMB 1,391.4 million from RMB 970.2 million[34]. - The company achieved a current ratio of 1.0 and a quick ratio of 0.74, indicating improved liquidity[34]. - Total equity as of December 31, 2021, was approximately RMB 559,700,000, representing a 40% increase from RMB 400,500,000 in the previous year[80]. Market and Sales - Domestic sales contributed approximately 78.8% of total revenue, up from 72.8% in 2020, while export sales accounted for 21.2%, down from 27.2%[52][59]. - The company successfully expanded its product offerings in outdoor leisure and sports competition categories, driven by changes in consumer behavior due to the COVID-19 pandemic[54]. - The company established a global ecological supply chain strategic alliance with major brands such as Costco, Decathlon, and Red Paddle to expand the market for new inflatable products[54]. - The company supplied building membrane materials for temporary venues related to the Beijing Winter Olympics and completed all project material supplies in the second half of 2021[56]. - The company recorded significant growth in sales of new products, including space fabric materials and airtight materials, contributing to overall revenue growth[51]. Research and Development - Research and development costs amounted to approximately RMB 60,000,000, an increase from RMB 48,000,000 in 2020, reflecting the company's commitment to maintaining long-term competitiveness[74]. - The company is actively involved in research and development of new technologies and products to enhance its competitive edge in the market[119]. - The company holds a total of 78 patents, with ongoing efforts to protect intellectual property through active patent applications[60]. - The company plans to strengthen the protection of intellectual property rights for new technologies and processes, aiming to apply for more patents[101]. Operational Efficiency - The company initiated cost management and digital factory projects to enhance operational efficiency[40]. - The company is committed to enhancing operational efficiency by optimizing internal control processes across procurement, production, sales, and finance[100]. - The group emphasizes cost control and procurement management to optimize operational efficiency and profitability[116]. Corporate Governance - The board of directors emphasizes the importance of high corporate governance standards to enhance performance, transparency, and accountability[121]. - The company has complied with the corporate governance code as of December 31, 2021, as outlined in the listing rules[122]. - The board consists of four executive directors and three independent non-executive directors, ensuring a balanced and independent structure[127]. - The audit committee, composed of three independent non-executive directors, reviewed the group's interim and annual performance, ensuring the effectiveness of internal controls and risk management systems[149]. - The company has adopted a board diversity policy, considering various factors such as gender, age, and professional experience in the selection of board members[141]. Future Plans - The company plans to invest more resources in the development of PVC materials and the Sijia Super Energy Core ecological building materials products[50]. - The company plans to continue promoting new applications for building materials and space fabric materials to expand market share[60]. - The company plans to stabilize the development of its new materials business while actively developing new products in 2022[94]. - The company aims to promote the "Sijia Super Energy Core Flooring" brand and expand its presence in the Chinese building materials market[95]. Social Responsibility - The company is committed to corporate social responsibility, participating in rural revitalization and educational poverty alleviation initiatives[103].

中國龍天集團有限公司 （於開曼群島註冊成立的有限公司） 股份代號：1863 SIJIA 中期報告 2021 公司資料 董事會 執行董事 林生雄先生（主席） 黃萬能先生 蔣石生先生 獨立非執行董事 劉振邦先生 盧佳譽先生 姜萍女士 審核委員會 | --- | |---------------------| | | | 劉振邦先生 （主席） | | 盧佳譽先生 | | 姜萍女士 | | 薪酬委員會 | | 盧佳譽先生 （主席） | | 姜萍女士 | | 林生雄先生 | | 劉振邦先生 | | | | 提名委員會 | | 姜萍女士 （主席） | | 盧佳譽先生 | | 劉振邦先生 | | 公司秘書 | | 周耀華先生 | | 法定代表 | | 林生雄先生 | | 周耀華先生 | 獨立核數師 中匯安達會計師事務所有限公司 主要往來銀行 中國銀行（香港）有限公司 註冊辦事處 Cricket Square Hutchins Drive PO Box 2681 Grand Cayman KY1-1111 Cayman Islands 香港總辦事處及主要營業地點 香港九龍 尖沙咀東 科學館道1 號 康宏廣場北座 6 樓 61 ...

回国托 中 國 龍 天 集 團 有 限 公 司 ( 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ) 股份代號：1863 SIJIA 2020 年 薪 目錄 公司資料 2 財務摘要 3 主席報告 4 管理層討論及分析 7 董事及高層管理人員履歷詳情 16 企業管治報告 20 | --- | |--------------------------| | | | 環境、社會及管治報告 | | 董事會報告書 | | 獨立核數師報告 | | 綜合損益及其他全面收入表 | | 綜合財務狀況報表 | | 綜合權益變動表 | | 綜合現金流量表 | | 綜合財務報表附註 | | 五年財務概要 | 38 52 62 66 67 69 70 72 128 1 中國龍天集團有限公司 | --- | --- | --- | |-----------------------|-----------------------------------------|-------| | | | | | | | | | 公司資料 | | | | | | | | 董事會 執行董事 | 主要往來銀行 中國銀行（香港）有限公司 | | | ...

Revenue and Sales Performance - The company's revenue for the six months ended June 30, 2020, was approximately RMB 320.1 million, an increase of RMB 2 million or 0.6% compared to RMB 318.1 million in the same period last year[6]. - Revenue from material products was approximately RMB 291.7 million, accounting for about 91.1% of total revenue, down from 95.7% in the previous year, with a decrease of approximately 4.2% due to reduced demand for outdoor leisure products[14]. - Revenue from flooring products reached approximately RMB 28.4 million, representing an increase of approximately 108.8% compared to RMB 13.6 million in the previous year, accounting for about 8.9% of total revenue[15]. - Domestic sales continued to be the main source of revenue, accounting for approximately 69% of total revenue, while export sales accounted for about 31%[6]. - The company’s revenue for the six months ended June 30, 2020, was RMB 320,101,000, a slight increase from RMB 318,133,000 in the same period of 2019, representing a growth of approximately 0.6%[51]. - Revenue from the Chinese market was RMB 221,135,000, representing an increase of 3.9% compared to RMB 213,264,000 in 2019[73]. - Revenue from flooring products increased significantly to RMB 28,389,000, up 109.5% from RMB 13,567,000 in 2019[73]. Profitability and Financial Performance - The gross profit for the period was approximately RMB 71 million, with a gross margin of 22.2%, down from 22.9% in the previous year[17]. - Gross profit for the same period was RMB 71,095,000, compared to RMB 72,843,000 in 2019, indicating a decrease of about 2.4%[51]. - Operating profit significantly increased to RMB 49,772,000 from RMB 20,096,000 year-on-year, reflecting a growth of approximately 147%[51]. - The net profit attributable to the owners of the company for the period was RMB 44,532,000, up from RMB 16,535,000 in 2019, marking an increase of around 169%[51]. - The group recorded a profit attributable to owners of approximately RMB 44,500,000, with basic earnings per share of RMB 5.22, compared to RMB 16,500,000 or RMB 1.94 per share in the same period last year[29]. - Other income and gains increased to approximately RMB 32,800,000 from RMB 3,800,000, mainly due to the recovery of bad debts of about RMB 19,000,000[25]. - The company reported a pre-tax profit of RMB 44,532,000 for the six months ended June 30, 2020, compared to RMB 16,535,000 in 2019, marking a significant increase[87]. Expenses and Cost Management - Sales and distribution costs increased by approximately RMB 200,000 to RMB 10,100,000, representing 3.2% of revenue, primarily due to product patent usage fees[21]. - Administrative expenses decreased by approximately RMB 14,000,000 or 30.5% to about RMB 32,000,000, mainly due to reduced research and development and consultancy expenses[22]. - Research and development costs were approximately RMB 19,400,000, accounting for 6.1% of revenue, down from RMB 29,100,000 or 9.1% in the previous year[23]. - Financial costs rose to approximately RMB 3,400,000 from RMB 3,000,000, primarily due to increased interest on bank borrowings[24]. Assets and Liabilities - Total equity increased by 14% to approximately RMB 362,700,000 compared to RMB 318,200,000 as of December 31, 2019[31]. - The total non-current assets as of June 30, 2020, amounted to RMB 475,354,000, an increase from RMB 448,128,000 at the end of 2019[53]. - As of June 30, 2020, the total non-current liabilities amounted to RMB 31,917,000, a significant increase from RMB 4,658,000 as of December 31, 2019, reflecting a growth of approximately 585%[55]. - The net asset value increased to RMB 362,675,000 as of June 30, 2020, compared to RMB 318,207,000 as of December 31, 2019, representing a growth of about 14%[55]. - The company reported a decrease in lease liabilities from RMB 580,000 in 2019 to RMB 419,000 in 2020, reflecting a reduction of approximately 28%[55]. Cash Flow and Financing - Cash and cash equivalents increased to approximately RMB 45,000,000 from RMB 26,400,000 as of December 31, 2019[33]. - The net cash used in operating activities for the six months ended June 30, 2020, was RMB (6,869,000), a decline from RMB 40,673,000 in the same period of 2019[59]. - Cash and cash equivalents increased to RMB 45,040,000 as of June 30, 2020, up from RMB 36,013,000 as of June 30, 2019, indicating a growth of approximately 25%[59]. - The company incurred a net cash outflow from investing activities of RMB (44,165,000) for the six months ended June 30, 2020, compared to RMB (10,076,000) in the prior year[59]. - New bank borrowings amounted to RMB 116,945,000 during the financing activities, a substantial increase from RMB 19,000,000 in the previous year[59]. - The company received guarantees for bank loans amounting to RMB 127,577,000 from ultimate shareholders, up from RMB 66,000,000 in the previous year[109]. Research and Development - The company holds a total of 65 patents for its material products, including 38 invention patents, 22 utility model patents, and 5 software copyright patents[10]. - The new material space fabric has been successfully developed and launched, widely used in outdoor water sports, entertainment, and military industries[9]. - The company plans to create and develop more new products to maintain its leadership position in the industry[9]. - The company plans to enhance its product development in the TPU materials for medical applications and continue the development of eco-friendly TPU flooring[49]. - A new technical innovation center has been established to support the research and development of new products[46]. - The company intends to recruit polymer materials graduates to enhance its technical talent pool and improve competitiveness[49]. Market Strategy and Customer Relations - The company aims to expand its market share by developing special functional materials and flooring products for major domestic and international brand clients[46]. - The company has implemented strict monitoring of overdue receivables, with credit terms generally ranging from 30 to 90 days[90]. - The company had no single customer contributing 10% or more to total sales for the six months ended June 30, 2020, similar to the previous year[74]. Other Financial Information - The company did not recommend any interim dividend for the six months ended June 30, 2020, consistent with the previous year[86]. - The company confirmed a gain of RMB 6,776,000 from the dissolution of a subsidiary, Fujian Haosi Import and Export Trade Co., Ltd.[105]. - Contract liabilities related to trade receivables amounted to RMB 19,018,000, which had been fully impaired in previous years[100]. - Other payables and accrued expenses totaled RMB 51,877,000, an increase from RMB 47,752,000 in the previous year[101]. - The company reported a decrease in accrued liabilities to RMB 16,608,000 from RMB 16,941,000[101]. - The company had no significant contingent liabilities as of June 30, 2020, consistent with the previous year[108].

[Company Information](index=2&type=section&id=Company%20Information) This report is the 2019 annual report for China Longtian Group Holdings Limited, detailing its registration, Hong Kong office, and key personnel - This report is the 2019 annual report for **China Longtian Group Holdings Limited (Stock Code: 1863)**, registered in the Cayman Islands, with its Hong Kong principal place of business in Tsim Sha Tsui, detailing core company information including directors and bankers[2](index=2&type=chunk)[17](index=17&type=chunk) [Financial Highlights](index=3&type=section&id=Financial%20Highlights) The company's 2019 financial performance shows significant growth in revenue and profit, alongside improved financial health 2019 Annual Financial Highlights | Metric | 2019 | 2018 | Change | | :--- | :--- | :--- | :--- | | **Performance** | | | | | Revenue (RMB Million) | 660.5 | 536.6 | +23.1% | | Gross Profit (RMB Million) | 145.0 | 122.2 | +18.7% | | Profit Before Tax (RMB Million) | 44.2 | 31.1 | +42.1% | | Profit for the Year Attributable to Owners of the Company (RMB Million) | 40.4 | 31.1 | +29.9% | | Basic Earnings Per Share (RMB Cents) | 4.74 | 3.65 | +29.9% | | Gross Profit Margin (%) | 22.0 | 22.8 | -0.8pp | | **Financial Position** | | | | | Total Assets (RMB Million) | 784.6 | 751.1 | +4.5% | | Total Liabilities (RMB Million) | 466.4 | 477.2 | -2.3% | | Total Equity (RMB Million) | 318.2 | 274.0 | +16.1% | | Gearing Ratio (Borrowings/Total Assets) (%) | 11.6 | 14.1 | -2.5pp | [Chairman's Statement](index=4&type=section&id=Chairman%27s%20Statement) The Group achieved significant revenue and profit growth in 2019, actively preparing for future challenges through R&D and operational efficiency improvements - In 2019, the Group's turnover increased by **23.1%** to **RMB 660.5 million**, with profit attributable to shareholders growing to **RMB 40.4 million**, primarily due to increased sales across its PVC, TPU materials, and flooring businesses in domestic and international markets[31](index=31&type=chunk) - Facing challenges from the US-China trade war and the COVID-19 pandemic, the Group anticipates a severe economic environment in 2020, planning to increase R&D investment in new and eco-friendly flooring materials and implement lean and performance management to enhance operational efficiency[32](index=32&type=chunk)[34](index=34&type=chunk) - The Group secured **9 national authorized patents** and applied for **28 invention patents** in 2019, with Fujian Sijia recognized as a "National Intellectual Property Advantage Enterprise," while actively pursuing share resumption[34](index=34&type=chunk)[35](index=35&type=chunk) [Management Discussion and Analysis](index=7&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the Group's 2019 operational and financial performance, outlining its market position, financial health, and future strategic directions [Business Review and Market Outlook](index=8&type=section&id=Business%20Review%20and%20Market%20Outlook) The Group, a leader in eco-friendly materials, achieved significant revenue growth, maintaining a global lead in spacer fabric and developing medical materials Revenue by Product Category | Product Category | 2019 Revenue (RMB Million) | Proportion (%) | 2018 Revenue (RMB Million) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Material Products | 622.3 | 94.2 | 531.3 | 99.0 | | Flooring Products | 38.2 | 5.8 | 5.3 | 1.0 | | **Total** | **660.5** | **100.0** | **536.6** | **100.0** | Revenue by Geographical Region | Region | 2019 Revenue (RMB Million) | Proportion (%) | 2018 Revenue (RMB Million) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | China | 450.3 | 68.2 | 353.5 | 65.9 | | Other Regions | 210.2 | 31.8 | 183.1 | 34.1 | | **Total** | **660.5** | **100.0** | **536.6** | **100.0** | - The Group achieved significant success in spacer fabric materials, becoming the **sole global supplier** with the largest production of both warp-knitted and woven spacer fabrics, and a **preferred global material supplier for Decathlon**[48](index=48&type=chunk) - The Group's successfully developed flooring material for medical isolation cabins was utilized in COVID-19 prevention and control in early 2020, leading to the inclusion of its Fuzhou factory on the national list of key epidemic prevention and control enterprises[49](index=49&type=chunk) [Financial Review](index=11&type=section&id=Financial%20Review) In 2019, the Group's revenue grew by 23.1%, with increased gross profit despite a slight margin dip, while administrative and finance costs decreased Gross Profit and Gross Profit Margin | Metric | 2019 | 2018 | | :--- | :--- | :--- | | Gross Profit (RMB Million) | 145.0 | 122.2 | | Gross Profit Margin (%) | 22.0 | 22.8 | - Administrative expenses decreased from **RMB 76.9 million** to **RMB 70.6 million**, primarily due to the completion of several high-investment R&D projects in the previous year, resulting in reduced R&D costs this year[61](index=61&type=chunk) - Impairment losses of approximately **RMB 3.2 million** on trade and other receivables (2018: RMB 1.0 million) and approximately **RMB 4.0 million** on inventories (2018: RMB 4.7 million) were recognized this year[65](index=65&type=chunk)[66](index=66&type=chunk) [Liquidity, Financial Resources and Human Resources](index=13&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Human%20Resources) At 2019 year-end, total equity increased, net current liabilities narrowed, and gearing ratio improved, with employee growth supporting expansion Key Financial Position Indicators | Metric | As at 2019 Year-End (RMB Million) | As at 2018 Year-End (RMB Million) | | :--- | :--- | :--- | | Total Equity | 318.2 | 274.0 | | Net Current Liabilities | (125.3) | (184.5) | | Interest-Bearing Bank Borrowings | 89.7 | 105.0 | | Cash and Cash Equivalents | 26.4 | 28.2 | - The Board does not recommend the payment of a final dividend for the year ended December 31, 2019[77](index=77&type=chunk) - As at the end of 2019, the Group employed a total of **445 employees**, an increase from 430 in 2018, primarily due to the establishment of the flooring product manufacturing department[78](index=78&type=chunk) [Future Outlook](index=16&type=section&id=Future%20Outlook) The Group plans to expand its industrial chain, enhance production lines, accelerate R&D in advanced materials, and implement intelligent upgrades while investing in talent - The Group plans to implement a series of upgrades in 2020, including: - Shanghai Sijia introducing advanced foreign production lines to expand the industrial chain - Fujian Sijia adding dedicated production lines for Decathlon orders - Accelerating product R&D for TPU materials in medical applications - Implementing intelligent upgrades to flooring production lines to reduce labor costs and enhance efficiency - Planning to recruit **30 graduates** with bachelor's, master's, or doctoral degrees in polymer and chemical materials[83](index=83&type=chunk)[86](index=86&type=chunk) [Biographical Details of Directors and Senior Management](index=17&type=section&id=Biographical%20Details%20of%20Directors%20and%20Senior%20Management) This section provides detailed biographical information for the Group's six directors, highlighting their extensive industry experience and professional backgrounds - The Board comprises **six directors**, including three executive and three independent non-executive directors, with Chairman and Founder Mr. Lin Shenxiong possessing over **33 years of experience** in polymer materials and plastics, responsible for the Group's overall strategic planning[88](index=88&type=chunk)[89](index=89&type=chunk) - Executive Directors Mr. Huang Wanneng and Mr. Jiang Shisheng are both senior engineers with technical backgrounds, responsible for the Group's R&D and technological development respectively, possessing extensive industry experience and multiple patent contributions[90](index=90&type=chunk)[92](index=92&type=chunk) - The three independent non-executive directors, Mr. Liu Zhenbang, Mr. Lu Jiayu, and Ms. Jiang Ping, possess extensive professional backgrounds and experience in accounting, business administration, and financial auditing, respectively[93](index=93&type=chunk)[95](index=95&type=chunk)[96](index=96&type=chunk) [Corporate Governance Report](index=21&type=section&id=Corporate%20Governance%20Report) This report details the Group's adherence to corporate governance principles, outlining its Board and committee structure, risk management, and shareholder communication [Board and Committee Functions](index=22&type=section&id=Board%20and%20Committee%20Functions) The company complied with the Corporate Governance Code, maintaining a Board with balanced composition and establishing key committees with clear mandates - The Company has complied with the code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules[103](index=103&type=chunk) - The Board comprises **three executive directors** and **three independent non-executive directors**, meeting the Listing Rules' requirement that independent non-executive directors constitute at least one-third of the Board[109](index=109&type=chunk)[122](index=122&type=chunk) - The Audit Committee, Remuneration Committee, and Nomination Committee have all been established, chaired by independent non-executive directors, and provided with sufficient resources to discharge their duties[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk)[136](index=136&type=chunk) [Risk Management, Internal Control and Compliance](index=33&type=section&id=Risk%20Management%2C%20Internal%20Control%20and%20Compliance) The Board confirmed the effectiveness of its risk management and internal control systems, maintaining full compliance and disclosing auditor remuneration - The Board has reviewed the risk management and internal control systems for the year ended December 31, 2019, and considers them to be effective and adequate[119](index=119&type=chunk)[152](index=152&type=chunk) 2019 Auditor's Remuneration | Services Provided | Fees Paid/Payable (HKD Thousand) | | :--- | :--- | | Audit of Financial Statements | 1,400 | | Review of 2019 Interim Results | 180 | | **Total** | **1,580** | [Shareholder Communication and Rights](index=35&type=section&id=Shareholder%20Communication%20and%20Rights) The company facilitates shareholder communication, outlining procedures for general meetings and resolutions, and has adopted a balanced dividend policy - Shareholders holding not less than **one-tenth of the paid-up share capital** may request to convene an extraordinary general meeting[168](index=168&type=chunk) - The Company has adopted a dividend policy, where the Board considers operating results, cash flow, capital requirements, and economic conditions, among other factors, when deciding on dividend distribution[176](index=176&type=chunk) [Environmental, Social and Governance Report](index=39&type=section&id=Environmental%2C%20Social%20and%20Governance%20Report) This report details the Group's commitment to environmental protection, responsible talent management, ethical operations, and community investment [Environmental Management and Resource Utilization](index=41&type=section&id=Environmental%20Management%20and%20Resource%20Utilization) The Group is committed to environmental protection, complying with regulations, disclosing resource data, and implementing energy-saving and recycling measures 2019 Key Resource Consumption | Resource Category | 2019 Consumption | Unit | | :--- | :--- | :--- | | Water | 41,954 | Cubic Meters | | Electricity | 2,157.19 | 10,000 kWh | | Gasoline | 19,040 | Tonnes | | Diesel | 724.02 | Tonnes | | Biomass Fuel | 10,111.29 | Tonnes | 2019 Key Emissions Data | Emission Category | 2019 Emissions | Unit | | :--- | :--- | :--- | | Sulfur Dioxide | 12,374 | Kilograms | | Nitrogen Oxides | 18,474.72 | Kilograms | | Wastewater | 3,145 | Tonnes | - The Group provides all biomass ash generated from its operations to surrounding villagers for agricultural and forestry fertilization, achieving resource recycling[221](index=221&type=chunk) [Talent Management and Health and Safety](index=45&type=section&id=Talent%20Management%20and%20Health%20and%20Safety) The Group upholds equal opportunity, provides regular training, and ensures a safe work environment with 100% safety training coverage and no work-related incidents Employee Composition as at 2019 Year-End | Category | Sub-category | Number of Employees | Proportion (%) | | :--- | :--- | :--- | :--- | | **Total Employees** | | **445** | **100%** | | **Gender** | Male | 304 | 68.3% | | | Female | 141 | 31.7% | | **Age** | 18-25 years old | 69 | 15.5% | | | 26-35 years old | 135 | 30.3% | | | 36-45 years old | 95 | 21.4% | | | 46-55 years old | 115 | 25.8% | | | Over 56 years old | 31 | 7.0% | - The Group conducts at least **3 training sessions weekly**, with a minimum of **30 attendees** per session, each lasting at least **1 hour**[238](index=238&type=chunk) - During the reporting period, the Group reported **no work-related fatalities or occupational disease cases**, with **445 employees** receiving occupational safety and health education, achieving a **100% safety training coverage rate**[239](index=239&type=chunk)[241](index=241&type=chunk) [Compliant Operations and Community Investment](index=49&type=section&id=Compliant%20Operations%20and%20Community%20Investment) The Group ensures product quality, implements anti-corruption policies, and actively engages in community investment through charitable donations - The Group maintains a comprehensive product quality control system and customer information security measures, strictly adhering to laws and regulations related to product quality and consumer rights[243](index=243&type=chunk) - The Group has established an anti-corruption policy, with no reports of bribery or corruption cases received, nor any concluded corruption-related legal proceedings during the year[246](index=246&type=chunk) - During the year, the Group donated a total of **RMB 698,000** for charitable purposes, actively participating in community activities such as rural revitalization and education poverty alleviation[247](index=247&type=chunk)[248](index=248&type=chunk) [Report of the Directors](index=53&type=section&id=Report%20of%20the%20Directors) This report covers the Board's dividend recommendation, details of major customers and suppliers, directors' and major shareholders' interests, and share trading suspension status - The Board does not recommend the payment of a final dividend for the year ended December 31, 2019[279](index=279&type=chunk) - During the year, sales to the **top five customers** accounted for approximately **25.3% of total revenue**, with the largest customer contributing **7.4%**; purchases from the **top five suppliers** accounted for approximately **38.8% of total cost of sales**, with the largest supplier contributing **16.6%**[288](index=288&type=chunk)[290](index=290&type=chunk) Shareholding of Directors and Major Shareholders (as at December 31, 2019) | Shareholder Name | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Company's Shareholding | | :--- | :--- | :--- | :--- | | Mr. Lin Shenxiong | Interest in Controlled Corporation | 410,886,000 | 48.19% | | Mr. Huang Wanneng | Beneficial Owner | 5,060,000 | 0.59% | | Rongliang Investment Enterprise Limited | Beneficial Owner | 59,011,000 | 6.92% | - The Company's shares have been suspended from trading since **February 14, 2013**, and will remain suspended until further notice[321](index=321&type=chunk) [Independent Auditor's Report](index=63&type=section&id=Independent%20Auditor%27s%20Report) The auditor issued an unmodified opinion on the financial statements, highlighting a material uncertainty regarding the Group's going concern ability - The auditor, Zhonghui Anda CPA Limited, believes the consolidated financial statements fairly and accurately reflect the Group's financial position and performance, issuing an **unmodified opinion**[323](index=323&type=chunk) - The auditor's report specifically draws attention to a "material uncertainty related to going concern," noting the Group's **RMB 125 million net current liabilities** as of 2019 year-end and the continuous suspension of its shares since 2013, which may cast significant doubt on its ability to continue as a going concern, though the auditor's opinion is not modified in respect of this matter[325](index=325&type=chunk) - Key audit matters, in addition to the going concern uncertainty, include the impairment testing of property, plant, and equipment, given their significant balances and the management's judgments and estimates involved[327](index=327&type=chunk)[328](index=328&type=chunk) [Consolidated Financial Statements](index=67&type=section&id=Consolidated%20Financial%20Statements) This section presents the Group's consolidated financial statements, providing a comprehensive overview of its financial performance and position [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=67&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For 2019, the Group reported increased revenue, gross profit, and profit attributable to owners 2019 Consolidated Statement of Profit or Loss Summary | Item (RMB Thousand) | 2019 | 2018 | | :--- | :--- | :--- | | Revenue | 660,482 | 536,619 | | Gross Profit | 144,987 | 122,179 | | Profit from Operations | 57,335 | 44,077 | | Profit Before Tax | 44,247 | 31,102 | | Profit for the Year Attributable to Owners of the Company | 40,448 | 31,125 | [Consolidated Statement of Financial Position](index=68&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of 2019 year-end, the Group's total assets, liabilities, and net assets are presented, showing an improvement in net current liabilities 2019 Consolidated Statement of Financial Position Summary | Item (RMB Thousand) | 2019 | 2018 | | :--- | :--- | :--- | | Total Non-current Assets | 448,128 | 461,532 | | Total Current Assets | 336,462 | 289,603 | | **Total Assets** | **784,590** | **751,135** | | Total Current Liabilities | 461,725 | 474,128 | | Total Non-current Liabilities | 4,658 | 3,041 | | **Total Liabilities** | **466,383** | **477,169** | | **Net Assets** | **318,207** | **273,966** | [Consolidated Statement of Cash Flows](index=71&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) In 2019, the Group generated net cash from operating activities, with outflows from investing and financing, resulting in a net decrease in cash 2019 Consolidated Statement of Cash Flows Summary | Item (RMB Thousand) | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 56,750 | 38,521 | | Net Cash (Used in)/Generated from Investing Activities | (21,239) | (8,554) | | Net Cash Used in Financing Activities | (37,369) | (34,069) | | Net Decrease in Cash and Cash Equivalents | (1,858) | (4,102) | | Cash and Cash Equivalents at Year-End | 26,414 | 28,200 | [Notes to the Consolidated Financial Statements](index=73&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) These notes provide detailed explanations and disclosures for the consolidated financial statements, including accounting policies and financial instrument details - The financial statements are prepared on a going concern basis, but Note 2 explicitly states a **material uncertainty regarding going concern** due to the Group's **RMB 125.3 million net current liabilities** as of 2019 year-end and continuous share trading suspension, with its validity dependent on controlling shareholder financial support[379](index=379&type=chunk) - Note 33 discloses that the Group breached certain financial covenants for secured bank loans with an outstanding balance of **RMB 19.0 million**, and the Group is currently negotiating renewal with the banks[646](index=646&type=chunk) - Note 38 discloses that the Group completed the disposal of its entire equity interest in Hubei Sijia, an indirect wholly-owned subsidiary, in November 2019 for a consideration of **RMB 4.549 million**, recognizing a gain on disposal of approximately **RMB 0.587 million**[669](index=669&type=chunk) - Note 42 discloses that the ultimate shareholders and their family members provided guarantees for the Group's bank loans totaling approximately **RMB 66.0 million**[680](index=680&type=chunk) [Five Year Financial Summary](index=132&type=section&id=Five%20Year%20Financial%20Summary) This section provides a five-year overview of the Group's key financial performance and position indicators Five Year Financial Summary | Item (RMB Thousand) | 2019 | 2018 | 2017 | 2016 | 2015 | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 660,482 | 536,619 | 523,799 | 472,688 | 466,531 | | Profit/(Loss) for the Year | 40,448 | 31,125 | 28,396 | 22,252 | (692,444) | | Total Assets | 784,590 | 751,135 | 783,283 | 765,148 | 801,806 | | Total Liabilities | 466,383 | 477,169 | 540,518 | 550,704 | 607,090 | | Total Equity | 318,207 | 273,966 | 242,765 | 214,444 | 194,716 |

미국 IF 中 國 龍 天 集 團 有 限 公 司 ( 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ) 股份代號：1863 201 中 期 報 告 | --- | --- | --- | |----------------------------------------------------|-------------------|--------------------------------------------------------------------| | | | | | 公司資料 | | | | | | | | 董事會 | | 註冊辦事處 | | 執行董事 林生雄先生 （主席） | | Cricket Square Hutchins Drive | | 黃萬能先生 蔣石生先生 | | PO Box 2681 Grand Cayman KY1-1111 Cayman Islands | | 獨立非執行董事 劉振邦先生 盧佳譽先生 | 香港九龍 | 香港總辦事處及主要營業地點 | | 姜萍女士 | 尖沙咀東 科學館道 | 1 號 | | 審核委員會 劉振邦先生 （主席） 盧佳譽先生 ...

DE IFC: 中 國 龍 天 集 團 有 限 公 司 ( 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ) 股份代號：1863 2018 目錄 公司資料 2 財務摘要 3 主席報告 4 管理層討論及分析 6 董事及高層管理人員履歷詳情 16 企業管治報告 20 環境、社會及管治報告 34 董事會報告書 49 獨立核數師報告 59 綜合損益及其他全面收入表 62 綜合財務狀況報表 63 綜合權益變動表 65 綜合現金流量表 66 綜合財務報表附註 68 五年財務概要 124 1 中國龍天集團有限公司 | --- | --- | --- | |------------------------------|-----------------------------------------------|----------------------------| | | | | | | | | | 公司資料 | | | | 董事會 | 主要往來銀行 | | | 執行董事 | 中國銀行（香港）有限公司 | | | 林生雄先生 （主席） | | | | 黃萬能先生 | 註冊辦事處 | | | 蔣石生先生 | C ...