Financial Performance - Revenue increased by approximately 18.9% to approximately RMB 532.2 million compared to RMB 447.7 million in the same period last year[1] - Profit attributable to owners increased by approximately 3.1% to approximately RMB 20.2 million, up from RMB 19.5 million[1] - Total comprehensive income for the period was RMB 17.8 million, slightly up from RMB 17.7 million in the previous year[2] - Basic earnings per share were approximately RMB 2.36, compared to RMB 2.29 for the same period last year[3] - Profit before tax for the six months ended June 30, 2024, was RMB 20,153,000, slightly up from RMB 19,545,000 in the same period last year[19] - Net profit attributable to shareholders was approximately RMB 20,200,000, with basic earnings per share of RMB 2.36, a slight increase from RMB 19,500,000 and RMB 2.29 per share in the previous year[39] Revenue Breakdown - Revenue for the six months ended June 30, 2024, was RMB 532,153,000, representing a 18.8% increase from RMB 447,722,000 for the same period in 2023[9] - Sales in the Chinese market reached RMB 357,906,000, up 27.1% from RMB 281,700,000 in the previous year[10] - Revenue from material products reached approximately RMB 482 million, accounting for about 90.6% of total revenue, with an increase of approximately 18.5% compared to RMB 406.8 million last year[29] - Revenue from building materials was approximately RMB 50.1 million, representing about 9.4% of total revenue, with an increase of approximately 22.6% compared to RMB 40.9 million last year[30] - Domestic sales accounted for approximately 67.3% of total revenue, an increase from 62.9% in the previous year, while export sales accounted for 32.7%, down from 37.1%[26] Costs and Expenses - Gross profit margin decreased from 18.3% to 17.4%[1] - The gross profit for the period was approximately RMB 92.7 million, with a gross profit margin of 17.4%, down from 18.3% in the previous year[31] - Sales and distribution costs increased by approximately RMB 4,100,000 to RMB 23,100,000, representing 4.4% of revenue, up from 4.3%[33] - Administrative expenses rose by RMB 15,200,000 or 35.3% to RMB 58,300,000, primarily due to increased employee costs[34] - Research and development costs amounted to RMB 24,900,000, or 4.7% of revenue, compared to RMB 18,800,000 or 4.2% in the previous year[35] Assets and Liabilities - Non-current assets totaled RMB 1,130.5 million, an increase from RMB 1,073.0 million as of December 31, 2023[4] - Current assets increased to RMB 696.8 million from RMB 637.0 million[4] - Total liabilities increased to RMB 1,051.3 million from RMB 951.8 million[5] - Trade receivables at the end of the reporting period amounted to RMB 251.5 million, an increase from RMB 226.7 million at the end of the previous year[22] - Trade payables and notes payable totaled RMB 287.6 million, up from RMB 241.9 million at the end of the previous year[23] - Current liabilities increased to RMB 487,200,000 from RMB 460,300,000[42] Dividends - The company did not declare an interim dividend for the period[1] - The company did not recommend any interim dividend for the six months ended June 30, 2024, consistent with the previous year[18] Research and Development - The company continues to focus on the design, development, production, and sales of high-strength polyester fiber composite materials and building materials[6] - The company aims to develop ecological building materials and expand its overseas market while accelerating its layout in the Chinese building materials market, promoting the "Sijia Super Energy Core" brand[52] - The company plans to enhance its new materials business and actively research new products, exploring new application areas and markets[52] - The company is focused on achieving digitalization of business operations, efficient horizontal and vertical collaboration, and integrating business and financial management[53] - The company is committed to enhancing the protection of intellectual property rights related to new technologies and processes, aiming to apply for more patents[53] Government Support and Community Engagement - The company received government grants amounting to RMB 9,962,000 for the development of new products and environmental initiatives during the reporting period[12] - The company is actively participating in rural revitalization and educational poverty alleviation activities, contributing to community development[53] Workforce - The company employed 715 staff as of June 30, 2024, up from 629 employees at the end of 2023[49] - The company is implementing a high-level talent cultivation plan to reserve technical research and digital talents for future development[53] Patents and Innovations - The company holds a total of 110 patents for material products, including 55 invention patents[28] Project Development - The company has completed the first phase of the Fuzhou Industrial Park project, with production operations now on track[53] - The establishment of a group safety management center is underway to promote the informatization and centralized management of safety across subsidiaries[53]

Financial Performance - The company's revenue for the year ended December 31, 2023, increased by 0.79% to approximately RMB 933.9 million from RMB 926.6 million in the previous year[28]. - The net profit attributable to shareholders for the year was approximately RMB 63.0 million, compared to RMB 46.2 million in the previous year, representing a growth of 36.3%[26]. - The gross profit margin improved to 19.9% in 2023 from 15.8% in 2022, indicating enhanced profitability[26]. - The gross profit for the year was approximately RMB 186 million, with a gross profit margin of 19.9%, an increase from 15.8% in 2022, primarily due to reduced purchasing costs[48]. - The total equity as of December 31, 2023, was approximately RMB 758,200,000, representing an increase of 17.4% from approximately RMB 645,900,000 as of December 31, 2022[57]. - The net debt ratio as of December 31, 2023, was 36.2%, up from 24.9% as of December 31, 2022[58]. - Financial costs amounted to approximately RMB 7,800,000 in 2023, a decrease from RMB 13,100,000 in 2022, mainly due to reduced interest on other loans and partial capitalization of bank loan interest[96]. Assets and Liabilities - Total assets increased to RMB 1,710.0 million in 2023, up from RMB 1,334.2 million in 2022, reflecting a growth of 28.2%[26]. - The company's total liabilities rose to RMB 951.8 million, compared to RMB 688.3 million in the previous year, resulting in a debt ratio of 36.2%[26]. - As of December 31, 2023, the group's interest-bearing bank borrowings were approximately RMB 605,000,000, up from RMB 302,000,000 in 2022[98]. Revenue Breakdown - Revenue from material products was approximately RMB 849.2 million, accounting for 90.9% of total revenue, with a growth of about 0.9% from RMB 841.6 million in 2022[45]. - Revenue from building materials was approximately RMB 84.7 million, representing 9.1% of total revenue, showing a slight decline of about 0.3% from RMB 85.0 million in 2022[46]. - The company’s domestic sales accounted for approximately 64.9% of total revenue, while export sales made up about 35.1%[41]. Strategic Initiatives - The company is focusing on digital transformation by implementing ERP, MES, SRM, and CRM systems to enhance operational efficiency[13]. - The company plans to continue facing challenges in 2024 due to geopolitical tensions and market conditions, while also focusing on green product development and digital management capabilities[44]. - The company has initiated the construction of the third phase of the Fuzhou Industrial Park in November 2023 to support future business growth in eco-friendly materials[31]. - The group plans to develop ecological building materials and expand into overseas markets while promoting the "Sijia Super Energy Core" brand in the Chinese building materials market[87]. - The group aims to achieve digitalization of business operations and enhance collaboration across various business units[87]. - The group plans to implement seven major development strategies, including talent strategy, safety strategy, green strategy, R&D strategy, digital strategy, supply chain management strategy, and cultural strategy[104]. Innovation and Sustainability - The company has successfully developed green products, including food-grade PVC materials and low-carbon materials, contributing to industry sustainability[14]. - The company showcased its low-carbon materials at the Hangzhou Asian Games, emphasizing its commitment to sustainable practices[35]. - The company has been recognized as a benchmark enterprise in the integration of new-generation information technology and manufacturing industries in Fujian Province[13]. - The company aims to enhance its competitive edge by investing in research and development to discover new technologies and launch new products[52]. - The group has engaged in the drafting and application of five patents, indicating a focus on innovation and technology development[93]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has complied with its provisions as of December 31, 2023[116]. - The board consists of six directors, including three executive directors and three independent non-executive directors[123]. - The board is responsible for overseeing the management of the group and formulating long-term corporate strategies, including internal controls and risk management systems[118]. - The company has established three board committees: the Audit Committee, the Remuneration Committee, and the Nomination Committee, each with specific responsibilities[132]. - The company emphasizes the importance of high corporate governance standards to enhance performance, transparency, and accountability[131]. Compliance and Risk Management - The group is committed to complying with relevant laws and regulations, ensuring continued operational licenses[156]. - The group has allocated financial and human resources to ensure compliance with applicable rules and regulations[156]. - The board is responsible for assessing the group's ability to continue as a going concern and disclosing relevant matters unless liquidation is intended[188]. - The group has undergone an audit of its consolidated financial statements by Zhonghui Anda CPA Limited[185]. Employee and Training - The group is committed to improving employee quality, capability, and skills through internal training and competitive compensation packages based on performance[99]. - The group provides mandatory provident fund contributions for eligible employees in Hong Kong, calculated as a percentage of their basic salary[197]. - The group’s subsidiaries in mainland China participate in a central pension plan operated by local government departments, with contributions based on employee salaries[197].

Financial Performance - Revenue increased by 0.8% to RMB 933,900,000[1] - Gross profit increased by 27.1% to RMB 186,000,000[1] - Profit attributable to owners of the company was RMB 63,000,000[11] - Basic earnings per share were RMB 7.39[11] - Pre-tax profit was RMB 64,653,000, with income tax expenses of RMB 6,008,000[10] - Total comprehensive income attributable to owners was RMB 77,082,000[11] - For the year ended December 31, 2023, total revenue from external customers was RMB 933,930,000, a slight increase of 0.3% from RMB 926,621,000 in 2022[52] - The company's pre-tax profit for 2023 was RMB 64,653,000, which is an increase of 32.3% compared to RMB 48,858,000 in 2022[64] - The company reported a significant increase in interest income, which decreased to RMB 597,000 in 2023 from RMB 1,467,000 in 2022, indicating a decline of 59.3%[57] - The company’s revenue from material products was RMB 849,252,000 in 2023, a slight increase from RMB 841,648,000 in 2022, showing a growth of 0.8%[56] - The company achieved total revenue of approximately RMB 933.9 million for the year ended December 31, 2023, an increase of about RMB 7.3 million or 0.8% compared to RMB 926.6 million in 2022[84] Assets and Liabilities - Non-current assets increased to RMB 1,072,970,000 from RMB 766,882,000[19] - Inventory increased to RMB 232,334,000 from RMB 181,750,000[19] - Trade receivables increased to RMB 226,689,000 from RMB 181,183,000[19] - Current liabilities decreased to RMB 460,274,000 from RMB 479,093,000[19] - The total value of fixed assets as of December 31, 2023, was RMB 922,474,000, up from RMB 589,760,000 in 2022, reflecting a significant increase[37] - The net current assets increased significantly to RMB 176,705,000 in 2023 from RMB 88,221,000 in 2022, representing a growth of 100.5%[45] - The total assets less current liabilities rose to RMB 1,249,675,000 in 2023, up from RMB 855,103,000 in 2022, marking an increase of 46.2%[45] - The company’s total liabilities increased to RMB 491,519,000 in 2023 from RMB 209,177,000 in 2022, an increase of 134.5%[45] - The company’s capital and reserves rose to RMB 758,156,000 in 2023, up from RMB 645,926,000 in 2022, reflecting a growth of 17.4%[45] Expenses and Costs - Cost of goods sold decreased to RMB 747,892,000 in 2023 from RMB 780,301,000 in 2022, reflecting a reduction of approximately 4.1%[31] - Research and development expenses for 2023 were RMB 38,288,000, down from RMB 41,166,000 in 2022, indicating a decrease of about 7%[31] - Employee costs, including salaries and benefits, rose to RMB 61,187,000 in 2023 from RMB 52,519,000 in 2022, marking an increase of about 16.4%[31] - Administrative expenses increased to approximately RMB 83.2 million from RMB 77.1 million in 2022, mainly due to rising employee costs[119] Trade and Receivables - Trade receivables increased significantly, with raw materials rising to RMB 125,863,000 in 2023 from RMB 86,528,000 in 2022, representing a growth of approximately 45%[39] - Trade receivables increased to RMB 232,065,000 in 2023 from RMB 186,216,000 in 2022, reflecting a growth of 24.6%[70] - The company recorded trade receivables of RMB 232.1 million as of December 31, 2023, with a provision for losses of RMB 5.4 million, compared to RMB 186.5 million and RMB 5.3 million respectively in 2022[100] - The weighted average expected loss rate for trade receivables over 120 days was 45% in 2023, up from 17% in 2022, indicating increased credit risk[100] Strategic Initiatives and Development - The company plans to enhance green product development and digital management capabilities to maintain competitiveness amid global market challenges[87] - The group plans to develop ecological building materials and expand into overseas markets while promoting the "Sijia Super Energy Core" brand[136] - The establishment of an intelligent manufacturing technology research institute is planned to promote automation and smart upgrades across subsidiaries[158] - The group aims to implement seven strategic development initiatives, including talent strategy and digitalization, to enhance overall business operations in 2024[157] Dividends and Shareholder Returns - The company did not recommend the payment of dividends for the year ended December 31, 2023, consistent with the previous year[94] - The board does not recommend the distribution of a final dividend for the year ending December 31, 2023, consistent with 2022[152] Employee and Training - The group employed a total of 549 employees as of December 31, 2023, an increase from 510 employees in 2022[176] - The group is committed to enhancing employee quality and skills through internal training and competitive compensation packages[153] Miscellaneous - The company recognized government grants for new product development and environmental initiatives, with no specific conditions attached[29] - The company reported a net foreign exchange loss of RMB 1,182,000 in 2023, an improvement from a loss of RMB 6,983,000 in 2022[31] - The group has no significant acquisitions or disposals of subsidiaries, associates, or joint ventures for the year ending December 31, 2023[168] - The group has not engaged in any purchase, sale, or redemption of its listed shares during the year[169] - The group has pledged properties, machinery, and construction in progress totaling RMB 505.9 million as collateral for bank loans, compared to RMB 268.7 million in 2022[151] - The group will continue to monitor RMB exchange rate fluctuations and take appropriate measures as necessary[155]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 447.722 million, a decrease of 16% compared to RMB 530.658 million for the same period in 2022 [27]. - Net profit for the six months ended June 30, 2023, was RMB 17.653 million, down 23.5% from RMB 23.110 million in the prior year [27]. - Earnings per share for the six months ended June 30, 2023, was RMB 2.29, compared to RMB 2.78 for the same period in 2022 [33]. - The group recorded a profit attributable to equity holders of approximately RMB 19.5 million, or basic earnings per share of RMB 0.0229, down from RMB 23.7 million or RMB 0.0278 in the previous year [130]. - Total revenue for the six months ended June 30, 2023, was RMB 447,722,000, a decrease of 15.6% compared to RMB 530,658,000 for the same period in 2022 [48]. Gross Profit and Margins - Gross profit for the period was approximately RMB 82,000,000, with a gross margin of 18.3%, an increase from 15.0% in the previous year due to lower raw material costs [3]. - Gross profit for the same period was RMB 82.013 million, with a gross margin of approximately 18.3% [27]. Assets and Liabilities - Total current assets were approximately RMB 551,300,000, while total current liabilities were approximately RMB 424,400,000, resulting in a net current asset value of RMB 126,900,000 [12]. - Total non-current assets increased to RMB 923.721 million as of June 30, 2023, compared to RMB 766.882 million at the end of 2022 [29]. - Current liabilities decreased to RMB 424.412 million from RMB 479.093 million at the end of 2022, improving the company's liquidity position [29]. - The net debt ratio as of June 30, 2023, was 33.5%, up from 24.9% as of December 31, 2022 [12]. - Total liabilities decreased to RMB 221,928,000 as of June 30, 2023, from RMB 276,138,000 as of December 31, 2022, indicating a reduction of approximately 19.6% [76]. Cash Flow and Financing - Cash and cash equivalents amounted to approximately RMB 82,800,000, a decrease from RMB 90,600,000 as of December 31, 2022 [14]. - Net cash generated from operating activities for the six months ended June 30, 2023, was RMB 2,767,000, down from RMB 8,686,000 in the same period of 2022 [42]. - The company incurred a net cash outflow from investing activities of RMB 180,836,000 for the six months ended June 30, 2023, compared to RMB 5,853,000 in the same period of 2022 [42]. - New borrowings during the financing activities amounted to RMB 221,462,000, an increase from RMB 137,000,000 in the same period of 2022 [42]. - Interest-bearing bank borrowings were approximately RMB 474,400,000, an increase from RMB 302,000,000 as of December 31, 2022, with a new bank loan of approximately RMB 221,500,000 obtained during the year [15]. Market and Sales Performance - Revenue from the Chinese market was RMB 281,700,000, down 25.1% from RMB 375,950,000 year-over-year [52]. - Material products revenue was RMB 406,822,000, a decline of 16.4% compared to RMB 486,838,000 in the previous year [52]. - Revenue from building materials was approximately RMB 40.9 million, representing about 9.1% of total revenue, a decrease of 6.7% from RMB 43.8 million in the previous year [120]. - Domestic sales contributed approximately 62.9% of total revenue, down from 70.8% in the previous year, while export sales accounted for about 37.1%, up from 29.2% [112]. Operational Developments - The company is focused on digital development and optimizing internal control processes to enhance operational efficiency [25]. - The company aims to enhance core competitiveness by developing high-performance product iterations and special materials for unique scenarios [25]. - The construction of the Sijia (Fuqing) Smart Industrial Park is underway, aiming to create a new materials production base with an environmentally friendly supply chain [25]. - The company is actively responding to policies and enhancing its internal and external circulation ecosystem while upgrading products across 18 industry sectors [116]. - The company plans to leverage the advantages of the Jiangyin Port area and optimize its global market layout to expand market share [116]. Human Resources - The company employed a total of 605 staff as of June 30, 2023, compared to 510 staff as of December 31, 2022, indicating a focus on enhancing human resources [21]. Government Grants and Other Income - The company received government grants amounting to RMB 1,642,000 for the six months ended June 30, 2023, down 58.6% from RMB 3,960,000 in the same period of 2022 [60]. - Other income and gains decreased to approximately RMB 5.6 million from RMB 11.7 million, primarily due to reduced government grants and foreign exchange gains [128]. Dividends and Shareholder Information - The company did not recommend any interim dividend for the six months ended June 30, 2023, consistent with the previous year [67]. - The board has resolved not to declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year [131]. Patents and Intellectual Property - The company holds a total of 121 patents for material products, including 54 invention patents, 61 utility model patents, and 1 software copyright patent [118].

Financial Performance - For the six months ended June 30, 2023, the profit attributable to owners decreased by approximately 17.6% to approximately RMB 19.5 million[1]. - Revenue for the same period was RMB 447.7 million, down from RMB 530.7 million in the previous year, representing a decrease of approximately 15.6%[9]. - Operating profit for the period was RMB 24.1 million, down from RMB 32.2 million in the previous year, reflecting a decrease of approximately 25.0%[9]. - The total comprehensive income for the period was RMB 17.7 million, compared to RMB 22.5 million in the previous year, indicating a decline of approximately 21.5%[9]. - The company's basic earnings per share for the six months ended June 30, 2023, was approximately RMB 2.29, compared to RMB 2.78 for the same period in 2022[26]. - The total comprehensive income attributable to the owners of the company for the six months ended June 30, 2023, was RMB 19.6 million, compared to RMB 23.1 million in 2022[35]. - Other income and gains for the period were approximately RMB 5.6 million, a decrease from RMB 11.7 million in the previous year, primarily due to reduced government grants and foreign exchange gains[74]. Assets and Liabilities - Non-current assets increased to RMB 923.7 million from RMB 766.9 million, showing a growth of approximately 20.4%[3]. - Current liabilities decreased to RMB 424.4 million from RMB 479.1 million, a reduction of approximately 11.4%[3]. - The net asset value of the company increased to RMB 676.9 million from RMB 645.9 million, reflecting an increase of approximately 4.8%[11]. - Cash and cash equivalents decreased to RMB 82.8 million from RMB 90.6 million, a decline of approximately 8.6%[3]. - Interest-bearing bank loans were approximately RMB 474.4 million as of June 30, 2023, an increase from RMB 302 million at the end of the previous year[78]. - The net debt ratio as of June 30, 2023, was 33.5%, up from 24.9% as of December 31, 2022[106]. Revenue Breakdown - Revenue from material products for the six months ended June 30, 2023, was RMB 406.8 million, down from RMB 486.8 million in 2022[33]. - Revenue from building materials was approximately RMB 40.90 million, representing 9.14% of total revenue, compared to RMB 43.82 million or 8.26% in the prior year, reflecting a decrease of about 6.7%[95]. - Revenue from the company's environmental building materials reached approximately RMB 406,800,000, accounting for about 90.9% of total revenue, down 16.4% from RMB 486,800,000 in the previous year[155]. - Domestic sales accounted for approximately 62.9% of total revenue, down from 70.8% in the previous year, while export sales accounted for 37.1%, up from 29.2%[90]. Costs and Expenses - Gross profit increased to RMB 82.0 million, with a gross margin improvement from 15.0% to 18.3%[8]. - Research and development costs were approximately RMB 18.8 million, accounting for 4.2% of revenue, down from 4.7% in the previous year[72]. - Administrative expenses increased by approximately RMB 2.4 million or 5.8% to about RMB 43.1 million, primarily due to rising employee costs[99]. - The company incurred a loss of RMB 99 from the sale/write-off of property, plant, and equipment for the six months ended June 30, 2023, compared to a loss of RMB 53 in 2022[23]. - The company's depreciation of property, plant, and equipment for the six months ended June 30, 2023, was RMB 33.2 million, compared to RMB 31.7 million in 2022[23]. Strategic Initiatives - The company plans to enhance core competitiveness by developing new high-performance products and special materials for specific scenarios[115]. - The company aims to optimize its global market layout and expand market share by leveraging its production bases and geographical advantages[93]. - The company is actively responding to national policies and implementing strategic deployments to navigate the challenges posed by international trade tensions and global inflation[133]. - The company aims to enhance its competitive edge by cultivating a high-level technical talent team to promote sustainable development[134]. - The company is constructing the "Sijia (Fuqing) Smart Industrial Park" project to establish a new materials production base, enhancing efficiency and quality in the supply chain[133]. - The company emphasizes compliance with relevant laws and regulations to maintain operational licenses and good relationships with regulatory authorities[134]. - The company is focused on digital development and aims to achieve efficient, accurate, sustainable, and digital strategic goals in line with industrial supply chain advancements[134]. Shareholder Returns - The company has decided not to declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[104]. - The total number of issued ordinary shares was approximately 852.6 million for both periods under review[26].

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 ...