[Company Information and Performance Summary](index=1&type=section&id=Company%20Information%20and%20Performance%20Summary) [Company Overview](index=1&type=section&id=Company%20Overview) Incorporated in the Cayman Islands, the company's shares have been suspended from HKEX trading since February 14, 2013, focusing on high-strength polyester fiber composites and PVC/non-PVC building materials - The company was incorporated in the Cayman Islands on October 7, 2009, with shares suspended from trading on the Main Board of The Stock Exchange of Hong Kong Limited since **February 14, 2013**[2](index=2&type=chunk)[11](index=11&type=chunk) - The Group primarily engages in the design, development, production, and sale of high-strength polyester fiber polymer composites and other reinforced composite materials (material products), as well as PVC and non-PVC composite flooring and wall panels (building material products)[11](index=11&type=chunk) [Interim Performance Highlights](index=1&type=section&id=Interim%20Performance%20Highlights) For the six months ended June 30, 2025, the Group's revenue increased by 11.2% to approximately RMB 591.6 million, but profit attributable to owners decreased by 14.6% to RMB 17.2 million, with a slight decline in gross profit margin and no interim dividend declared Summary of Key Financial Data for H1 2025 | Metric | June 30, 2025 (RMB million) | June 30, 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 591.6 | 532.2 | +11.2% | | Gross Profit Margin | 17.0% | 17.4% | -0.4 percentage points | | Profit Attributable to Owners of the Company | 17.2 | 20.2 | -14.6% | | Basic Earnings Per Share | 2.02 cents | 2.36 cents | -14.4% | | Interim Dividend | Nil | Nil | - | [Condensed Consolidated Financial Statements](index=2&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, the Group's revenue increased, but profit for the period and profit attributable to owners decreased year-on-year due to higher cost of sales, finance costs, and income tax expense, coupled with lower other income and gains Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) | Metric | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 591,574 | 532,153 | | Cost of sales | (490,721) | (439,418) | | Gross profit | 100,853 | 92,735 | | Other income and gains | 11,128 | 17,649 | | Selling and distribution costs | (23,437) | (23,160) | | Administrative expenses | (59,810) | (58,300) | | Profit from operations | 29,115 | 27,217 | | Finance costs | (9,228) | (4,367) | | Profit before tax | 19,415 | 22,850 | | Income tax expense | (5,264) | (5,059) | | Profit for the period | 14,151 | 17,791 | | Profit attributable to owners of the Company | 17,211 | 20,153 | | Basic earnings per share (RMB cents) | 2.02 | 2.36 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's total non-current assets slightly increased, total current assets slightly decreased, but total current liabilities significantly declined, leading to an improved net current assets and an increase in total equity Condensed Consolidated Statement of Financial Position (Summary) | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Total non-current assets | 1,178,335 | 1,159,555 | | Total current assets | 767,253 | 780,919 | | Total current liabilities | 500,260 | 559,016 | | Net current assets | 266,993 | 221,903 | | Total non-current liabilities | 601,190 | 554,025 | | Total equity | 844,138 | 827,433 | [Notes to the Condensed Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [General Information](index=6&type=section&id=General%20Information) The company is registered in the Cayman Islands, primarily engaged in the design, development, production, and sale of material and building material products, with Mr. Lin Shengxiong as the ultimate controlling party - The Company is an investment holding company, primarily engaged in the design, development, production, and sale of material products and building material products through its subsidiaries[11](index=11&type=chunk) - Mr. Lin Shengxiong is the ultimate controlling party of the Company[11](index=11&type=chunk) [Basis of Preparation](index=6&type=section&id=Basis%20of%20Preparation) The interim financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, Hong Kong Generally Accepted Accounting Principles, and the Hong Kong Companies Ordinance, and should be read in conjunction with the 2024 annual report - The interim financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards issued by the HKICPA, Hong Kong Generally Accepted Accounting Principles, disclosure requirements of the Hong Kong Companies Ordinance, and applicable disclosure provisions of the Listing Rules of The Stock Exchange of Hong Kong Limited[12](index=12&type=chunk) - The interim financial statements should be read in conjunction with the Group's 2024 annual consolidated financial statements for the year ended December 31, 2024[12](index=12&type=chunk) [Adoption of New and Revised Hong Kong Financial Reporting Standards](index=7&type=section&id=Adoption%20of%20New%20and%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) The Group has adopted all new and revised Hong Kong Financial Reporting Standards effective January 1, 2025, with no significant changes to its accounting policies, financial statement presentation, or reported amounts - The adoption of new and revised Hong Kong Financial Reporting Standards has not resulted in significant changes to the Group's accounting policies, financial statement presentation, or reported amounts[13](index=13&type=chunk) [Revenue](index=7&type=section&id=Revenue) The Group's revenue primarily derives from material products, accounting for 93.3% of total revenue, with domestic sales remaining the main source, recognized upon transfer of product control, typically with credit terms of 30 to 90 days Revenue by Geographical Region and Product Type | Category | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | **Geographical Market** | | | | China | 387,135 | 357,906 | | Others | 204,439 | 174,247 | | **Major Products** | | | | Material products | 552,199 | 482,025 | | Building material products | 39,375 | 50,128 | | **Total** | 591,574 | 532,153 | - The Group had only one operating segment during the year, primarily engaged in the design, development, production, and sale of material products and building material products[14](index=14&type=chunk) - Sales are recognized when control of the products is transferred, with credit terms to customers typically ranging from **30 to 90 days**[14](index=14&type=chunk) [Other Income and Gains](index=9&type=section&id=Other%20Income%20and%20Gains) For the six months ended June 30, 2025, total other income and gains decreased to RMB 11,128 thousand from RMB 17,649 thousand in the prior period, primarily due to lower government grant income Details of Other Income and Gains | Item | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 379 | 384 | | Government grants | 2,419 | 9,962 | | Gross rental income | 2,150 | 2,173 | | Exchange gains, net | 897 | 2,317 | | Miscellaneous income | 5,267 | 2,758 | | **Total** | 11,128 | 17,649 | - The decrease in other income and gains was primarily due to a reduction in government grant income[16](index=16&type=chunk) [Finance Costs](index=9&type=section&id=Finance%20Costs) For the six months ended June 30, 2025, finance costs increased to RMB 9,228 thousand, mainly because no interest expenses were capitalized during the period Details of Finance Costs | Item | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on lease liabilities | 62 | 95 | | Interest on bank borrowings | 9,157 | 10,131 | | Interest on other borrowings | 9 | 429 | | Total borrowing costs | 9,228 | 10,655 | | Less: Interest capitalized | – | (6,288) | | **Total** | 9,228 | 4,367 | - The increase in finance costs was primarily due to no interest expenses being capitalized during the period[17](index=17&type=chunk) [Profit Before Tax](index=10&type=section&id=Profit%20Before%20Tax) The Group's profit before tax is influenced by various expenses, including directors' emoluments, depreciation of property, plant and equipment, depreciation of right-of-use assets, and amortization of intangible assets Items Deducted From/Credited to Profit Before Tax | Item | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Directors' emoluments | 839 | 928 | | Depreciation of property, plant and equipment | 35,266 | 25,231 | | Depreciation of right-of-use assets | 3,579 | 1,804 | | Amortization of intangible assets | 2,193 | 64 | [Income Tax Expense](index=10&type=section&id=Income%20Tax%20Expense) The Group's income tax expense slightly increased, mainly due to higher deferred tax deducted from profit or loss during the period, with PRC subsidiaries enjoying a 15% preferential tax rate as high-tech enterprises, while others pay 25% Details of Income Tax Expense | Item | June 30, 2025 (RMB thousand) | June 30, 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax – PRC | | | | Provision for the year | 4,136 | 2,265 | | Underprovision in prior years | 952 | 2,715 | | Deferred tax | 176 | 79 | | **Total** | 5,264 | 5,059 | - Fujian Sijia, Shanghai Sijia, and Fujian Sijia New Material, as high-tech enterprises, are subject to a **15%** tax rate, while other subsidiaries are subject to a **25%** corporate income tax rate[20](index=20&type=chunk) [Dividends](index=11&type=section&id=Dividends) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025[21](index=21&type=chunk) [Earnings Per Share Attributable to Owners of the Company](index=11&type=section&id=Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) For the six months ended June 30, 2025, basic earnings per share attributable to owners of the Company was RMB 2.02 cents, consistent with diluted earnings per share due to the absence of potential dilutive ordinary shares Earnings Per Share | Metric | June 30, 2025 (RMB cents) | June 30, 2024 (RMB cents) | | :--- | :--- | :--- | | Basic | 2.02 | 2.36 | | Diluted | 2.02 | 2.36 | - Basic earnings per share is calculated based on profit attributable to owners of the Company of approximately **RMB 17,211,000** and the weighted average number of ordinary shares in issue of approximately **852,612,470** shares[22](index=22&type=chunk) - Diluted earnings per share is consistent with basic earnings per share as there were no potential dilutive ordinary shares during these periods[23](index=23&type=chunk) [Property, Plant and Equipment](index=11&type=section&id=Property%2C%20Plant%20and%20Equipment) For the six months ended June 30, 2025, the Group acquired property, plant and equipment at a cost of RMB 19,983,000 and disposed of/derecognized assets with a carrying amount of RMB 15,000, resulting in a loss of RMB 3,000 - The Group acquired property, plant and equipment at a cost of **RMB 19,983,000** (2024 corresponding period: RMB 87,416,000)[24](index=24&type=chunk) - Disposal/derecognition of property, plant and equipment with a carrying amount of **RMB 15,000** resulted in a loss on disposal/derecognition of **RMB 3,000**[24](index=24&type=chunk) [Trade and Bills Receivables](index=12&type=section&id=Trade%20and%20Bills%20Receivables) The Group's total trade and bills receivables amounted to RMB 359,973 thousand, with credit terms generally ranging from 30 to 90 days, and management regularly reviews overdue balances Aging Analysis of Trade and Bills Receivables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 214,668 | 270,797 | | Over 3 months but within 6 months | 76,944 | 54,281 | | Over 6 months but within 1 year | 65,504 | 27,179 | | Over 1 year | 2,857 | 2,344 | | **Total** | 359,973 | 354,601 | - The Group's credit terms for transactions with customers generally range from **30 to 90 days**, and management regularly reviews overdue balances[25](index=25&type=chunk) [Trade and Bills Payables](index=13&type=section&id=Trade%20and%20Bills%20Payables) As of June 30, 2025, the Group's total trade and bills payables amounted to RMB 280,166 thousand, a decrease from December 31, 2024 Aging Analysis of Trade and Bills Payables | Aging | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 181,142 | 211,095 | | Over 3 months but within 6 months | 85,979 | 81,308 | | Over 6 months but within 1 year | 10,460 | 6,271 | | Over 1 year | 2,585 | 4,939 | | **Total** | 280,166 | 303,613 | [Interest-Bearing Borrowings](index=13&type=section&id=Interest-Bearing%20Borrowings) For the period ended June 30, 2025, the Group obtained new interest-bearing borrowings of RMB 111,500,000 and repaid RMB 83,925,000 - The Group obtained new interest-bearing borrowings of **RMB 111,500,000** for additional working capital[28](index=28&type=chunk) - The Group repaid interest-bearing borrowings of **RMB 83,925,000**[28](index=28&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=14&type=section&id=Business%20Review) As a leader in the environmental special functional new materials industry, the Group's revenue grew by 11.2% during the review period, driven by increased demand for material products despite a decline in building material sales, with continuous R&D investment and numerous patents - The Group is one of the world-renowned leaders in the production of environmentally friendly special functional new materials, with operations in over **100** countries and regions worldwide[29](index=29&type=chunk) - Revenue during the review period was approximately **RMB 591.6 million**, an increase of **11.2%** compared to the same period last year, primarily due to the surging popularity of material products[29](index=29&type=chunk) - As of June 30, 2025, the Group held a total of **150** patents for material products, of which **67** were invention patents[32](index=32&type=chunk) [Overall Business Overview](index=14&type=section&id=Overall%20Business%20Overview) The Group focuses on low-carbon, emission reduction, and technological innovation, providing functional new material products for modern transportation, medical, and construction sectors, with domestic sales remaining the primary revenue source, accounting for approximately 65.4% of total revenue - The Group is committed to leading the development of the industry's environmental protection industrial chain, providing technical consulting and services, and offering Sijia New Materials and Supercore building material products for modern transportation, medical, construction, outdoor leisure, and sports sectors[29](index=29&type=chunk) Revenue by Product and Geographical Region (Business Review) | Category | June 30, 2025 (RMB million) | % of Total Revenue | June 30, 2024 (RMB million) | % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | **Products** | | | | | | Material products | 552.20 | 93.34 | 482.02 | 90.58 | | Building material products | 39.37 | 6.66 | 50.13 | 9.42 | | **Regions** | | | | | | China | 387.13 | 65.4% | 357.90 | 67.3% | | Others | 204.44 | 34.6% | 174.25 | 32.7% | - Despite severe challenges such as economic downturns in European and American countries and international geopolitical instability, the Group achieved improved sales by developing new products and providing high-quality products[31](index=31&type=chunk) [Material Products](index=14&type=section&id=Material%20Products) Material products business is the Group's primary revenue source, with revenue reaching RMB 552.2 million during the review period, a 14.6% year-on-year increase, accounting for 93.3% of total revenue, mainly driven by demand growth - The Group's main revenue is derived from material products, accounting for approximately **93.3%** of total revenue (June 30, 2024: 90.6%)[30](index=30&type=chunk) - Revenue from material products reached approximately **RMB 552.2 million**, with sales increasing by approximately **14.6%**, primarily due to increased demand for material products[33](index=33&type=chunk) [Building Material Products](index=14&type=section&id=Building%20Material%20Products) Building material products business generated approximately RMB 39.4 million in revenue during the review period, a 21.5% year-on-year decrease, accounting for 6.7% of total revenue - Revenue from building material products was approximately **RMB 39.4 million** (June 30, 2024: RMB 50.1 million), accounting for approximately **6.7%** of total revenue (June 30, 2024: 9.4%), representing a sales decrease of approximately **21.5%**[34](index=34&type=chunk) [Financial Review](index=16&type=section&id=Financial%20Review) The Group's revenue grew by 11.2% during the review period, but gross profit margin slightly declined; increased administrative and finance costs, coupled with reduced other income and gains, led to a 14.6% decrease in profit attributable to owners, with continued R&D investment to maintain competitiveness - The Group's revenue for the six months ended June 30, 2025, was approximately **RMB 591.6 million**, representing a year-on-year increase of **11.2%**[35](index=35&type=chunk) - The decrease in profit for the period was partly due to increased finance costs, resulting in profit attributable to owners of the Company of approximately **RMB 17.2 million**, a year-on-year decrease of **14.6%**[44](index=44&type=chunk) - The Group continues to invest in research and development, believing it is crucial for maintaining long-term competitiveness, retaining existing customers, and enhancing its ability to attract new customers and open new markets[40](index=40&type=chunk) [Revenue (Financial Review)](index=16&type=section&id=Revenue%20(Financial%20Review)) The Group's revenue increased by 11.2% year-on-year to RMB 591.6 million, with material products revenue at RMB 552.2 million and building material products revenue at RMB 39.4 million - The Group's revenue for the six months ended June 30, 2025, was approximately **RMB 591.6 million**, an increase of approximately **RMB 59.4 million**, or **11.2%**, compared to the same period last year[35](index=35&type=chunk) - Revenue from material products was approximately **RMB 552.2 million**, and revenue from building material products was approximately **RMB 39.4 million**[35](index=35&type=chunk) [Gross Profit and Gross Profit Margin](index=16&type=section&id=Gross%20Profit%20and%20Gross%20Profit%20Margin) Gross profit for the review period was approximately RMB 100.9 million, with gross profit margin decreasing from 17.4% in the prior period to 17.0%; material products saw a slight increase in gross margin, while building material products experienced a significant decline Gross Profit and Gross Profit Margin | Metric | June 30, 2025 (RMB million) | June 30, 2024 (RMB million) | | :--- | :--- | :--- | | Gross profit | 100.9 | 92.7 | | Gross profit margin | 17.0% | 17.4% | Gross Profit Margin by Product Type | Product | June 30, 2025 (%) | June 30, 2024 (%) | | :--- | :--- | :--- | | Material products | 17.6 | 17.4 | | Building material products | 9.8 | 17.8 | | **Total** | 17.0 | 17.4 | [Selling and Distribution Costs](index=17&type=section&id=Selling%20and%20Distribution%20Costs) Selling and distribution costs increased by approximately RMB 0.3 million to RMB 23.4 million from RMB 23.2 million in the prior period, while their proportion of revenue decreased from 4.4% to 4.0% - Selling and distribution costs increased by approximately **RMB 0.3 million** to approximately **RMB 23.4 million** from approximately RMB 23.2 million in the prior period[38](index=38&type=chunk) - The proportion of selling and distribution costs to revenue decreased from **4.4%** to **4.0%**[38](index=38&type=chunk) [Administrative Expenses](index=17&type=section&id=Administrative%20Expenses) Administrative expenses increased by approximately RMB 1.5 million or 2.6% to approximately RMB 59.8 million, primarily due to higher staff costs - Administrative expenses increased by approximately **RMB 1.5 million** or **2.6%** to approximately **RMB 59.8 million** from approximately RMB 58.3 million[39](index=39&type=chunk) - The increase in administrative expenses was mainly attributable to higher staff costs[39](index=39&type=chunk) [Research and Development](index=17&type=section&id=Research%20and%20Development) R&D costs were approximately RMB 26.5 million, representing 4.5% of revenue, and the Group will continue to invest in R&D to reduce raw material costs, optimize production processes, increase capacity, and develop high-value-added new materials - Research and development costs were approximately **RMB 26.5 million**, or **4.5%** of revenue (2024 corresponding period: RMB 24.9 million or 4.7% of revenue)[40](index=40&type=chunk) - The Group will continue to allocate resources for R&D activities at its Fuzhou, Shanghai, and Fuqing plants, aiming to reduce raw material costs, optimize production processes, increase capacity, and develop high-value-added new materials[40](index=40&type=chunk) [Finance Costs (Financial Review)](index=18&type=section&id=Finance%20Costs%20(Financial%20Review)) Finance costs increased to approximately RMB 9.2 million, primarily due to no interest expenses being capitalized during the period - Finance costs were approximately **RMB 9.2 million** (2024 corresponding period: RMB 4.4 million)[41](index=41&type=chunk) - The increase in finance costs was primarily due to no interest expenses being capitalized during the period[41](index=41&type=chunk) [Other Income and Gains (Financial Review)](index=18&type=section&id=Other%20Income%20and%20Gains%20(Financial%20Review)) Other income and gains were approximately RMB 11.1 million, a decrease from the prior period, mainly due to reduced government grant income - Other income and gains were approximately **RMB 11.1 million** (2024 corresponding period: approximately RMB 17.6 million)[42](index=42&type=chunk) - The decrease during the period was primarily due to reduced government grant income[42](index=42&type=chunk) [Income Tax](index=18&type=section&id=Income%20Tax) Total income tax expense was approximately RMB 5.3 million, a slight increase mainly due to higher deferred tax deducted from profit or loss during the period - The Group incurred total income tax expense of approximately **RMB 5.3 million** (2024 corresponding period: RMB 5.1 million)[43](index=43&type=chunk) - The slight increase was primarily due to higher deferred tax deducted from profit or loss during the period[43](index=43&type=chunk) [Profit for the Period](index=18&type=section&id=Profit%20for%20the%20Period) Profit attributable to owners of the Company was approximately RMB 17.2 million, with basic earnings per share of RMB 2.02 cents, a decrease from the prior period, partly due to increased finance costs - The Group recorded profit attributable to owners of the Company of approximately **RMB 17.2 million**, or basic earnings per share of **RMB 2.02 cents**[44](index=44&type=chunk) - The decrease in profit for the period was partly due to increased finance costs[44](index=44&type=chunk) [Dividends (Financial Review)](index=18&type=section&id=Dividends%20(Financial%20Review)) The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board has resolved not to declare any interim dividend for the six months ended June 30, 2025[45](index=45&type=chunk) [Liquidity and Financial Resources](index=19&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's total equity and cash and cash equivalents increased, net current assets improved, but the net gearing ratio slightly rose; the company has certain capital commitments and some assets are pledged - As of June 30, 2025, total equity was approximately **RMB 844.1 million**, an increase of **2.0%** compared to approximately RMB 827.4 million as of December 31, 2024[46](index=46&type=chunk) - As of June 30, 2025, the Group had cash and cash equivalents of approximately **RMB 110.7 million**, an increase from RMB 83.4 million as of December 31, 2024[48](index=48&type=chunk) - As of June 30, 2025, the Group's net gearing ratio (calculated as total interest-bearing liabilities as a percentage of total assets) was **36.4%**, compared to 35.1% as of December 31, 2024[47](index=47&type=chunk) [Total Equity](index=19&type=section&id=Total%20Equity) As of June 30, 2025, the Group's total equity was approximately RMB 844.1 million, representing a 2.0% increase from December 31, 2024 - As of June 30, 2025, total equity was approximately **RMB 844.1 million**, an increase of **2.0%** compared to approximately RMB 827.4 million as of December 31, 2024[46](index=46&type=chunk) [Financial Position](index=19&type=section&id=Financial%20Position) The Group's net current assets increased from RMB 222.0 million as of December 31, 2024, to RMB 267.0 million as of June 30, 2025, with the net gearing ratio slightly rising to 36.4% Current Assets and Liabilities | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Total current assets | 767.3 | 780.9 | | Total current liabilities | 500.3 | 559.0 | | Net current assets | 267.0 | 222.0 | - As of June 30, 2025, the Group's net gearing ratio (calculated as total interest-bearing liabilities as a percentage of total assets) was **36.4%**, compared to 35.1% as of December 31, 2024[47](index=47&type=chunk) [Cash and Cash Equivalents](index=19&type=section&id=Cash%20and%20Cash%20Equivalents) As of June 30, 2025, the Group's cash and cash equivalents were approximately RMB 110.7 million, primarily denominated in RMB - As of June 30, 2025, the Group had cash and cash equivalents of approximately **RMB 110.7 million** (December 31, 2024: RMB 83.4 million), with the majority denominated in RMB[48](index=48&type=chunk) [Bank Borrowings](index=19&type=section&id=Bank%20Borrowings) As of June 30, 2025, the Group's interest-bearing bank borrowings were approximately RMB 704.8 million, with new bank loans of approximately RMB 111.5 million obtained during the year - As of June 30, 2025, the Group's interest-bearing bank borrowings were approximately **RMB 704.8 million** (December 31, 2024: RMB 677.3 million)[49](index=49&type=chunk) - New bank loans of approximately **RMB 111.5 million** were obtained during the year[49](index=49&type=chunk) [Contingent Liabilities](index=19&type=section&id=Contingent%20Liabilities) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had no significant contingent liabilities[50](index=50&type=chunk) [Capital Commitments](index=19&type=section&id=Capital%20Commitments) As of June 30, 2025, the Group's capital commitments were approximately RMB 121.7 million, partly funded by internal resources and partly by bank borrowings - As of June 30, 2025, the Group's capital commitments were approximately **RMB 121.7 million** (December 31, 2024: RMB 111.2 million)[51](index=51&type=chunk) - Capital commitments are partly funded by internal resources and partly by bank borrowings[51](index=51&type=chunk) [Pledge of Assets](index=20&type=section&id=Pledge%20of%20Assets) Portions of the Group's buildings, plant and machinery, construction in progress, leasehold land, investment properties, and bank deposits are pledged to banks as collateral for bank loans and general banking facilities - The Group's buildings, plant and machinery, and construction in progress of approximately **RMB 516.8 million**, leasehold land of approximately **RMB 77.1 million**, investment properties of approximately **RMB 20.3 million**, and bank deposits of approximately **RMB 44.3 million** have been pledged to banks[52](index=52&type=chunk) [Events After Reporting Period](index=20&type=section&id=Events%20After%20Reporting%20Period) No significant events occurred after the reporting period - There were no significant events after the reporting period[53](index=53&type=chunk) [Human Resources](index=20&type=section&id=Human%20Resources) As of June 30, 2025, the Group employed a total of 730 staff and is committed to enhancing employee quality and capabilities through training and competitive remuneration packages - As of June 30, 2025, the Group employed a total of **730** staff (December 31, 2024: 718 staff)[54](index=54&type=chunk) - The Group is committed to improving the quality, capabilities, and skills of all employees, providing job-related training and competitive remuneration packages[54](index=54&type=chunk) [Exchange Rate Fluctuation Risk and Related Hedging](index=20&type=section&id=Exchange%20Rate%20Fluctuation%20Risk%20and%20Related%20Hedging) Some of the Group's high-end products are sold in the European market, facing exchange loss risks from RMB to USD exchange rate fluctuations, but as most business is settled in RMB, no hedging agreements have been entered into - Some of the Group's high-end products are sold in the European market, and are affected by RMB to USD exchange rate fluctuations, leading to certain exchange losses on some foreign trade orders[55](index=55&type=chunk) - As the Group primarily operates in mainland China and most business transactions are settled in RMB, the Group has not entered into any agreements to hedge against foreign exchange risks[55](index=55&type=chunk) [Significant Changes](index=21&type=section&id=Significant%20Changes) Except as disclosed in the report, there have been no significant changes in the Group's business and financial condition - Save as disclosed above, there have been no significant changes in the development or future development of the Group's business and financial condition[56](index=56&type=chunk) [Major Acquisitions or Disposals](index=21&type=section&id=Major%20Acquisitions%20or%20Disposals) For the six months ended June 30, 2025, the Group had no major acquisitions or disposals of subsidiaries, associates, or joint ventures - There were no major acquisitions or disposals of subsidiaries, associates, or joint ventures for the six months ended June 30, 2025[57](index=57&type=chunk) [Future Prospects](index=21&type=section&id=Future%20Prospects) [Outlook](index=21&type=section&id=Outlook) Facing global challenges, the Group will adhere to its development strategy of 'stable operation, green development, continuous innovation, and pursuit of excellence,' benefiting from new development opportunities brought by national policies - The Group actively responds to national policies, establishing and adhering to the development strategy of 'stable operation, green development, continuous innovation, and pursuit of excellence'[58](index=58&type=chunk) - The National Development and Reform Commission has outlined key tasks for the 2025 national economic and social development plan, and the Group's product development is closely related to national economic development, bringing new opportunities for the industry[58](index=58&type=chunk) [Strategic Initiatives](index=21&type=section&id=Strategic%20Initiatives) The Group will continuously upgrade its business and operating models through strategic initiatives focusing on eco-building materials development, new material R&D, business digitalization, comprehensive deployment of seven major development strategies, industrial park construction, safety management, talent cultivation, internal control, intelligent manufacturing, IP protection, corporate culture, and social responsibility - Vigorously develop eco-building material products, further expand overseas markets, and accelerate the layout of the Chinese building materials market to promote the 'Sijia Supercore' brand[58](index=58&type=chunk) - Strengthen the development of new material businesses while actively researching new products, exploring new application areas, and new markets[58](index=58&type=chunk) - Achieve phased goals of business operation digitalization, efficient horizontal/vertical business synergy, integrated business-finance, and 'refined, profitable, standardized' management[59](index=59&type=chunk) - Comprehensively implement seven major development strategies: talent strategy, safety strategy, green strategy, R&D strategy, digitalization strategy, supply chain management strategy, and cultural strategy[59](index=59&type=chunk) - Establish an Intelligent Manufacturing Technology Research Institute to promote the intelligent and automated transformation of production equipment across the Group's subsidiaries[59](index=59&type=chunk) - Actively fulfill corporate responsibility by participating in rural revitalization initiatives and giving back to local communities[59](index=59&type=chunk) [Other Information](index=23&type=section&id=Other%20Information) [Compliance with Laws and Regulations](index=23&type=section&id=Compliance%20with%20Laws%20and%20Regulations) The Group is committed to complying with relevant laws and regulations, allocating financial and human resources to ensure continuous adherence to applicable rules; during the review period, the Group complied with Listing Rules, SFO, and other relevant laws - The Group is committed to complying with relevant laws and regulations, and has allocated financial and human resources to ensure continuous adherence to applicable rules and regulations[60](index=60&type=chunk) - During the review period, the Group complied with the Listing Rules, Securities and Futures Ordinance, Companies Ordinance, Patent Law of the People's Republic of China, Contract Law of the People's Republic of China, Labor Law, and other relevant laws and regulations[60](index=60&type=chunk) [Standard Code for Securities Transactions by Directors](index=23&type=section&id=Standard%20Code%20for%20Securities%20Transactions%20by%20Directors) The Company's directors have confirmed compliance with the Standard Code for Securities Transactions by Directors as set out in Appendix C3 of the Listing Rules for the six months ended June 30, 2025 - Following specific enquiries made to all Directors, all Directors confirmed that they have complied with the required standards set out in the Standard Code for the six months ended June 30, 2025[61](index=61&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Shares](index=23&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Shares) Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares during the six months ended June 30, 2025 - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed shares during the six months ended June 30, 2025[62](index=62&type=chunk) [Audit Committee](index=23&type=section&id=Audit%20Committee) The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, deeming them compliant with applicable accounting standards, Listing Rules, and all legal requirements - The Audit Committee has reviewed the accounting principles and practices adopted by the Group with management and discussed matters relating to audit, internal control, and financial reporting[63](index=63&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and is of the opinion that the accounts comply with applicable accounting standards, the Listing Rules, and all legal requirements, and that adequate disclosures have been made[63](index=63&type=chunk) [Suspension of Trading in Shares](index=24&type=section&id=Suspension%20of%20Trading%20in%20Shares) The Company's shares have been suspended from trading on the Stock Exchange since February 14, 2013, and will remain suspended until further notice - The Company's shares have been suspended from trading on the Stock Exchange since **February 14, 2013**, and will continue to be suspended until further notice[64](index=64&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=24&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the HKEX and Company websites, and the interim report will be dispatched to shareholders and available on the aforementioned websites in due course - This interim results announcement has been published on the HKEX website (http://www.hkexnews.hk) and the Company's website (http://www.chinalongevity.hk)[65](index=65&type=chunk) - The Company's 2025 interim report will be dispatched to the Company's shareholders and available on the aforementioned websites in due course[65](index=65&type=chunk) [Board of Directors](index=24&type=section&id=Board%20of%20Directors) As of the date of this announcement, the Company's Board of Directors comprises three executive directors (Mr. Liu Jun, Mr. Jiang Shisheng, and Mr. Gao Juwen) and three independent non-executive directors (Mr. Liu Zhenbang, Mr. Lu Jiayu, and Ms. Jiang Ping) - As of the date of this announcement, the Company's Board of Directors comprises three executive directors, namely Mr. Liu Jun, Mr. Jiang Shisheng, and Mr. Gao Juwen; and three independent non-executive directors, namely Mr. Liu Zhenbang, Mr. Lu Jiayu, and Ms. Jiang Ping[67](index=67&type=chunk)

Group 1 - The company, Longtian Group (01863.HK), will hold a board meeting on August 28, 2025, to review and approve its interim results for the six months ending June 30, 2025 [1] - The meeting will also consider the proposal for the distribution of an interim dividend, if any [1]

中國龍天集團有限公司（「本公司」）董事會（「董事會」）謹此宣佈，本公司將於二零二五年 八月二十八日（星期四）舉行董事會會議，藉以（其中包括）考慮及批准本公司及其附屬公 司截至二零二五年六月三十日止六個月中期業績公告及其刊發，以及考慮派付中期股息 （如有）。 承董事會命 中國龍天集團有限公司 主席兼執行董事 劉俊 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CHINA LONGEVITY GROUP COMPANY LIMITED 1863 董事會會議日期 香港，二零二五年八月十四日 於本公告日期，本公司董事會有三位執行董事，其名字為劉俊先生、蔣石生先生及高居 文先生；三位獨立非執行董事，其名字為劉振邦先生、盧佳譽先生及姜萍女士。 ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國龍天集團有限公司 呈交日期: 2025年8月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01863 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.001 | HKD | | 2,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.001 | HKD | | 2,000,000 | 本月底法定/註冊股本 ...

Group 1 - The core viewpoint of the announcement is that China Longtian Group (01863) maintains a stable production, operation, and financial status while continuing to focus on the research and development of new materials and products [1] - The Hong Kong Stock Exchange has confirmed that if the company's securities remain suspended as of July 31, 2019, it reserves the right to delist the company according to rule 6.01A(2)(b)(ii) until further notice [1] - As of the date of the announcement, the company has not received any notification from the Stock Exchange regarding the delisting process [1]

智通财经APP讯，中国龙天集团(01863)发布公告，公司的生产、营运及财政状况维持稳健，并将继续专 注研发新物料及产品。 联交所已确认，倘公司证券于2019年7月31日仍然停牌，其将根据第6.01A(2)(b)(ii)条规定保留行使其将 公司除牌的权利，直至另行通知为止。 截至本公告日期，公司并无接获联交所发出有关进行公司除牌程序的任何通知。 此外，继续停牌。 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部分內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 CHINA LONGEVITY GROUP COMPANY LIMITED 1863 停牌的最新消息 本公告乃由中國龍天集團有限公司（「本公司」，連同其附屬公司統稱「本集團」）根據香港 聯合交易所有限公司證券上市規則（「上市規則」）第13.24A條及香港法例第571章證券及期 貨條例第XIVA部項下內幕消息條文而作出。 茲提述本公司日期為二零一四年六月十三日、二零一七年九月十八日、二零一八年八月 一日、二零一八年十月二十六日、二零一八年十一月九日、二零一八年十二月十一日、 二零一九年二月十一日、二零一九年四月三十日、二零一九年六月十八日、二零一九年 八月二日、二零一九年十一月四日、二零二零年二月三日、二零二零年七月三十一日、 二零二零年十一月三日、二零二一年一月二十九日、二零二一年五月十一日、二零二一 年七月二十八日、二零二一年十月二十九日、二零二二年一月二十七日、二零二二年四 月二十九日、二零二二年七 ...

Financial Performance - The company reported a revenue increase of 24.8% from approximately RMB 933.9 million in 2023 to approximately RMB 1,165.3 million in 2024[6]. - Gross profit rose to RMB 202.7 million in 2024, compared to RMB 186.0 million in 2023, with a gross margin of 17.4%[5]. - The profit attributable to shareholders decreased to RMB 55.6 million in 2024 from RMB 63.0 million in 2023, resulting in a basic earnings per share of RMB 6.52[5]. - The company's total revenue for the year ended December 31, 2024, was approximately RMB 1,165.3 million, an increase of about RMB 231.4 million or 24.8% compared to RMB 933.9 million in 2023[22]. - Revenue from material products reached approximately RMB 1,060.1 million, accounting for 91.0% of total revenue, with a growth rate of 24.8% compared to RMB 849.2 million in 2023[25]. - Revenue from building materials was approximately RMB 105.2 million, representing 9.0% of total revenue, with a growth rate of 24.2% compared to RMB 84.7 million in 2023[26]. - The gross profit for the year was approximately RMB 202.7 million, with a gross margin of 17.4%, down from 19.9% in 2023[28]. - The company recorded a profit attributable to equity holders of approximately RMB 55.6 million, with basic earnings per share of RMB 6.52, compared to RMB 63.0 million or RMB 7.39 per share in 2023[30]. Assets and Liabilities - The total assets increased to RMB 1,940.5 million in 2024, up from RMB 1,710.0 million in 2023, while total liabilities rose to RMB 1,113.0 million[5]. - Total equity as of December 31, 2024, was approximately RMB 827,400,000, a 9.1% increase from RMB 758,200,000 in 2023[38]. - Total current assets reached approximately RMB 780,900,000 in 2024, compared to RMB 637,000,000 in 2023, while total current liabilities increased to RMB 559,000,000 from RMB 460,300,000[39]. - Cash and cash equivalents amounted to approximately RMB 83,400,000 in 2024, up from RMB 64,400,000 in 2023[40]. Operational Developments - The company has fully launched the first phase of the "Sijia (Fuqing) Industrial Park," significantly enhancing production capacity for PVC composite materials and eco-friendly building materials[8]. - The company is constructing the third phase of the "Sijia (Fuzhou) Industrial Park" to meet future business development needs, focusing on PU eco-friendly inflatable pool materials and PVC flocking materials[9]. - The company aims to deepen its digital transformation and smart manufacturing strategies, implementing automated systems to enhance operational efficiency and reduce labor costs[13]. - The company plans to accelerate market expansion and new product line development to achieve new growth heights in the future[7]. Innovation and Technology - The company has been recognized as a "National High-tech Enterprise" and has received multiple invention patents, indicating a strong focus on innovation and technology development[10]. - The company holds a total of 137 patents and copyrights, with ongoing efforts to protect intellectual property through patent renewals[24]. - The company plans to continue its product technology innovation strategy, focusing on new products in space fabric materials and airtight materials as future main businesses[17]. - The company is intensifying the protection of intellectual property rights related to new technologies and processes, aiming to apply for more patents to enhance its innovative capabilities[53]. Corporate Governance - The board of directors is committed to high corporate governance standards, which enhances performance, transparency, and accountability to shareholders[64]. - The company has established three board committees to oversee audit, remuneration, and nominations, ensuring effective governance practices[67]. - The roles of Chairman and CEO are held by Mr. Liu, which the board believes benefits the company's business outlook and management[70]. - The company has adopted a corporate governance code to comply with listing rules, demonstrating its commitment to regulatory standards[65]. - All directors have confirmed compliance with the securities trading standards, reflecting a commitment to ethical practices[66]. - The board regularly reviews its governance practices to ensure they remain appropriate and effective for the company's needs[72]. - The company has a structured mechanism for the appointment and re-election of directors, ensuring continuity and governance integrity[73]. - The management team is experienced and capable, ensuring a balance of power and responsibilities within the organization[70]. - The board of directors is responsible for leading and controlling the company, ensuring effective internal controls and risk management systems are in place[75]. Employee and Workplace Policies - The company promotes a diverse and inclusive work environment, ensuring fair recruitment processes without discrimination based on various factors[178]. - The employee turnover rate is 36% for males and 38% for females, with a significant 70% turnover rate for employees aged 25 or younger[177]. - The company has established a comprehensive customer service system to enhance customer satisfaction and address complaints effectively[169]. - The company has implemented a smoke-free policy and established an annual smoking cessation reward to promote employee health[192]. - Team-building activities and mental health initiatives were organized to enhance employee well-being and foster a harmonious work environment[192]. - The company encourages employees to participate in volunteer activities, contributing time and skills to support the community[199]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to leading the environmental industry chain development and providing technical consulting and services across various sectors[132]. - The ESG report covers the company's performance and policies related to sustainability for the reporting period from January 1, 2024, to December 31, 2024[133]. - The report's scope has expanded compared to last year, including three main subsidiaries under direct control[133]. - The group has identified and disclosed key ESG issues and stakeholder engagement processes in its report[137]. - The group has received multiple recognitions for its development and sustainability achievements in 2024, including being listed in the "2024 Fujian Province Intelligent Manufacturing Excellent Scenario Project" and the "Fujian Province New Materials and New Products Catalog (First Batch)"[138]. - The group emphasizes compliance with anti-corruption laws and has not been aware of any significant violations related to bribery or fraud during the reporting period[149]. - The group conducts regular anti-corruption training for its directors and employees to enhance awareness of illegal activities[150].

Financial Performance - Revenue increased by 24.8% to RMB 1,165,300,000[3] - Gross profit rose by 9.0% to RMB 202,700,000[3] - Profit attributable to owners of the company was RMB 55,600,000[3] - Basic earnings per share decreased to RMB 6.52 from RMB 7.39[5] - The company reported a total comprehensive income of RMB 69,277,000, down from RMB 72,727,000[5] - Total revenue for the year 2024 reached RMB 1,165,256,000, a 25% increase from RMB 933,930,000 in 2023[15] - Revenue from the Chinese market was RMB 783,720,000, up 29.4% from RMB 605,699,000 in 2023[16] - The company reported a profit before tax of RMB 58,959,000 for 2024, down from RMB 64,653,000 in 2023[23] - Basic earnings per share for the year were approximately RMB 55,552,000, compared to RMB 63,000,000 in 2023[25] - The gross profit for the year was approximately RMB 202.7 million, with a gross margin of 17.4%, down from 19.9% in 2023[46] - The company recorded a profit attributable to equity holders of approximately RMB 55.6 million, with basic earnings per share of RMB 6.52, compared to RMB 63 million or RMB 7.39 per share in 2023[48] Assets and Liabilities - Total assets less current liabilities amounted to RMB 1,381,458,000[6] - Non-current assets totalled RMB 1,159,555,000, up from RMB 1,072,970,000[6] - Current assets increased to RMB 780,919,000 from RMB 636,979,000[6] - Trade receivables rose significantly to RMB 354,601,000 from RMB 226,689,000[6] - Non-current assets as of December 31, 2024, were valued at RMB 1,152,793,000, an increase from RMB 1,066,147,000 in 2023[12] - Total current assets reached approximately RMB 780,900,000 in 2024, up from RMB 637,000,000 in 2023, while total current liabilities increased to RMB 559,000,000 from RMB 460,300,000[57] - Cash and cash equivalents amounted to approximately RMB 83,400,000 in 2024, compared to RMB 64,400,000 in 2023[58] - Interest-bearing bank borrowings were approximately RMB 676,800,000 in 2024, an increase from RMB 605,000,000 in 2023[59] - The net debt ratio decreased to 35.1% in 2024 from 36.2% in 2023[57] Investments and Expenditures - The company has made significant investments in construction projects, with capital expenditures of RMB 346,068,000 during the year[27] - Research and development expenses increased to RMB 47,703,000 in 2024 from RMB 38,288,000 in 2023[20] - Research and development costs amounted to approximately RMB 47.7 million, up from RMB 38.3 million in 2023, highlighting the company's commitment to maintaining long-term competitiveness[51] Trade and Inventory - Trade receivables amount to RMB 359,741,000 as of December 31, 2024, up from RMB 232,065,000 in 2023, with a provision for impairment increasing from RMB 5,429,000 to RMB 8,872,000[29][30] - The aging analysis of trade receivables shows that RMB 270,797,000 is within 3 months overdue, compared to RMB 177,062,000 in 2023[30] - Inventory as of December 31, 2024, totals RMB 241,403,000, compared to RMB 232,334,000 in 2023, with raw materials decreasing from RMB 125,863,000 to RMB 100,135,000[29] Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules, with a review of its governance procedures conducted by the board[74] - The roles of Chairman and CEO are held by the same individual, Mr. Liu Jun, who has extensive experience in the materials market, which the board believes benefits the group's business outlook[74] - The company has complied with the standards for securities trading by directors as outlined in the listing rules, with all directors confirming adherence for the fiscal year ending December 31, 2024[75] - The audit committee, composed of three independent non-executive directors, has reviewed the accounting principles and financial reporting matters for the fiscal year ending December 31, 2024[77] Market and Strategic Initiatives - Domestic sales accounted for approximately 67.3% of total revenue, while export sales made up about 32.7%, reflecting a slight shift in revenue sources compared to the previous year[40] - The company plans to continue its talent strategy and invest in high-performance green products and digital technology to enhance competitiveness amid global market challenges[42] - The company plans to develop ecological building materials and expand into overseas markets while promoting the "Sijia Super Energy Core" brand[67] - The company aims to achieve digitalization of business operations and enhance management efficiency through various strategic initiatives[68] Other Financial Information - The company did not recommend any dividends for the year ending December 31, 2024[24] - The total borrowing cost for 2024 was RMB 20,057,000, compared to RMB 17,564,000 in 2023[19] - Financial costs increased to RMB 9,600,000 in 2024 from RMB 7,800,000 in 2023, primarily due to increased bank loans[54] - Total equity as of December 31, 2024, was approximately RMB 827,400,000, reflecting a 9.1% increase from RMB 758,200,000 in 2023[56] Trading Status - The company's shares have been suspended from trading since February 14, 2013, and will continue to be suspended until further notice[78] - The annual performance announcement for the fiscal year ending December 31, 2024, will be published on the Hong Kong Stock Exchange and the company's website[79]

Revenue and Sales Performance - The company's revenue for the six months ended June 30, 2024, was approximately RMB 532.2 million, an increase of about RMB 84.5 million or 18.9% compared to RMB 447.7 million for the same period last year[4]. - Revenue from material products reached approximately RMB 482 million, accounting for about 90.6% of total revenue, with a sales increase of approximately 18.5%[7]. - Revenue from building materials was approximately RMB 50.1 million, representing about 9.4% of total revenue, with a sales increase of approximately 22.6%[8]. - Domestic sales accounted for approximately 67.3% of total revenue, while export sales accounted for about 32.7%[4]. - Revenue from the Chinese market reached RMB 357,906,000, up 27.0% from RMB 281,700,000 year-over-year[46]. - Total revenue for the six months ended June 30, 2024, was RMB 532,153,000, an increase of 18.8% compared to RMB 447,722,000 for the same period in 2023[44]. Profitability and Financial Performance - The gross profit for the period was approximately RMB 92.7 million, with a gross margin of 17.4%, down from 18.3% in the previous year[10]. - Gross profit for the same period was RMB 92,735,000, up from RMB 82,013,000, reflecting a gross margin improvement[32]. - The net profit attributable to the company's owners for the six months was RMB 20,153,000, compared to RMB 19,545,000 in the previous year, representing a growth of 3.1%[32]. - The group recorded a profit attributable to equity holders of RMB 20,200,000, with basic earnings per share of RMB 2.36, compared to RMB 19,500,000 and RMB 2.29 per share in the previous year[18]. Expenses and Costs - Administrative expenses increased by approximately RMB 15.2 million or 35.3% to about RMB 58.3 million, primarily due to rising employee costs[13]. - Financial costs increased to RMB 4,400,000 from RMB 4,100,000, primarily due to new bank loans obtained to facilitate operations[15]. - Total borrowing costs for the six months were RMB 10,655,000, compared to RMB 8,256,000 in the same period last year, reflecting a rise of 29.0%[50]. Research and Development - Research and development costs amounted to RMB 24,900,000, representing 4.7% of revenue, an increase from RMB 18,800,000 or 4.2% of revenue in the previous year[14]. - The company has implemented a high-level talent cultivation plan to reserve digital and technological R&D talents for future development[30]. - The establishment of a smart manufacturing technology research institute aims to enhance automation and intelligence in production across subsidiaries[31]. Assets and Liabilities - Current assets totaled approximately RMB 696,800,000, up from RMB 637,000,000, while current liabilities increased to RMB 487,200,000 from RMB 460,300,000[19]. - The total non-current assets increased to RMB 1,130,477,000 as of June 30, 2024, compared to RMB 1,072,970,000 at the end of 2023, indicating a growth of 5.4%[33]. - The total liabilities increased to RMB 1,051,307,000 as of June 30, 2024, compared to RMB 951,793,000 at the end of 2023, reflecting a rise of 10.5%[34]. - Trade receivables as of June 30, 2024, totaled RMB 251,501,000, an increase from RMB 226,689,000 at the end of 2023, indicating a growth of 10.9%[62]. - The company reported other payables and accrued expenses totaling RMB 35,958,000 as of June 30, 2024, down from RMB 45,676,000 as of December 31, 2023, a decrease of 21.4%[70]. Cash Flow and Investments - Net cash generated from operating activities for the six months ended June 30, 2024, was RMB 40,953,000, significantly up from RMB 2,767,000 in the same period of 2023[38]. - The company incurred a net cash outflow from investing activities of RMB 89,977,000 for the six months ended June 30, 2024, compared to RMB 180,836,000 in the same period of 2023[38]. - New borrowings during the financing activities amounted to RMB 124,200,000, while repayments of borrowings were RMB 80,626,000 for the six months ended June 30, 2024[38]. Shareholder Information - As of June 30, 2024, Mr. Lin Sheng-Hsiung holds 410,886,000 shares, representing approximately 48.19% of the company's total issued share capital[87]. - Mr. Lin Sheng-Hsiung's spouse, Ms. Lin Hung-Ting, is deemed to have an interest in 410,886,000 shares, also representing approximately 48.19% of the company's total issued share capital[94]. - Rongliang Investment Company Limited, owned by Mr. Lin Wan-Peng, holds 59,011,000 shares, accounting for approximately 6.92% of the company's total issued share capital[94]. Corporate Governance and Compliance - The audit committee, composed of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2024, confirming compliance with applicable accounting standards and regulations[97]. - The company has no significant changes in accounting policies that would materially affect its financial statements for the current period[43]. - The company did not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year[56].