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: CHINA GAS INDUSTRY INVESTMENT HOLDINGS CO. LTD. 呈交日期: 2025年8月7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) | 01940 | 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 | USD | | 0.0001 USD | | 200,000 | | 增加 / 減少 (-) | | | | | | USD | | | | 本月底結存 | | | 2,000,000,000 | USD | | 0.0001 USD | | 200 ...

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching RMB 1.2 billion for the fiscal year 2024[4]. - The total revenue for the Group in 2024 was approximately RMB 1,313.61 million, representing a decrease of approximately 11.26% compared to RMB 1,491.15 million in 2023[24]. - Gross profit for 2024 was approximately RMB 315.25 million, a decrease of approximately 4.17% from the previous year, primarily due to a downturn in the steel market and intense competition in the liquefied industrial gas market[24]. - Profit attributable to owners of the Company in 2024 was approximately RMB 130.05 million, an increase of approximately 1.54% from RMB 128.08 million in 2023[24]. - The Group's revenue for the year ended December 31, 2024, decreased to approximately RMB1,313.61 million, representing an 11.91% decrease from approximately RMB1,491.15 million for the year ended December 31, 2023[42]. - Gross profit for the Reporting Period was approximately RMB315.25 million, a decrease of about 5.07% from RMB332.10 million in 2023, primarily due to lower selling prices of lean krypton xenon liquid oxygen[74]. Market and Business Development - User data showed a growth of 20% in active users, totaling 5 million by the end of 2024[4]. - New product launches contributed to a 25% increase in market share in the gas industry segment[4]. - The company is exploring strategic acquisitions to enhance its service offerings and market presence[4]. - The successful market launch of rare gas products (lean krypton xenon) has filled market gaps in the aerospace and high-end electronics sectors, enhancing the Group's competitiveness[26]. - The Group aims to diversify its customer base and supply chain to mitigate risks associated with the US-China trade policies and ongoing trade tensions[58]. - The industrial gas market in China is expected to continue growing, driven by national policies, foreign investment, and the development of high-tech industries[66]. Operational Enhancements - The company is investing RMB 200 million in R&D for new technologies in air separation units[4]. - Market expansion efforts have led to the establishment of two new facilities in Hebei, expected to increase production capacity by 30%[4]. - The Group operates two pipeline industrial gas production plants as of December 31, 2024, to enhance service delivery to its customers[48]. - The Group's TTG New District Plant has enhanced its production capacity with one set of 60,000Nm3/hr and two sets of 40,000Nm3/hr air separation units in smooth operation[25]. Financial Position and Assets - The Group's total assets as of 2024 were approximately RMB 2,443.15 million, while total liabilities were approximately RMB 799.25 million[37]. - The Group's total equity increased to approximately RMB 1,643.90 million in 2024, up from RMB 1,513.43 million in 2023[37]. - The current ratio improved to approximately 1.54 as of December 31, 2024, compared to approximately 1.28 in 2023[101]. Expenses and Costs - Selling and marketing expenses rose by approximately 22.75% to approximately RMB2.32 million from RMB1.89 million in 2023, mainly due to increased employee benefits expenses[86]. - Administrative expenses decreased by approximately 13.07% to approximately RMB47.28 million from RMB54.39 million in 2023, attributed to lower depreciation and reduced legal and professional fees[87]. - Net finance costs decreased by approximately 14.92% to approximately RMB18.48 million from RMB21.72 million in 2023, mainly due to a decrease in interest expenses[94]. Management and Governance - The Group's management team includes experienced executives with over 31 years in their respective industries, enhancing leadership stability[134][136]. - The company has a strong board with members holding qualifications from prestigious institutions, including the Hong Kong Institute of Certified Public Accountants and the University of Oxford[144][152]. - The board includes independent non-executive directors who provide oversight and independent advice, enhancing corporate governance[149]. - The management team collectively brings a wealth of experience from various sectors, contributing to the Company's strategic direction[175]. Strategic Outlook - The company provided a positive outlook, projecting a revenue growth of 10-12% for the next fiscal year[4]. - The Group plans to enhance its digital platform, aiming for a 50% increase in online service usage by 2025[4]. - The Group aims to enhance its market analysis and risk forecasting capabilities to address challenges posed by the US-China trade war and changes in trade policies[60]. Employee and Training Initiatives - The Group emphasizes employee training and development, investing in continuing education and training programs for management and staff[124]. - As of December 31, 2024, the Group employed 324 employees, with total staff costs of approximately RMB52.64 million for the year, a decrease from RMB55.37 million in 2023[128].

Financial Performance - For the year ended December 31, 2024, the company's revenue was approximately RMB 1,313.61 million, a decrease of about 11.91% compared to RMB 1,491.15 million for the year ended December 31, 2023[2] - The gross profit for the reporting period was approximately RMB 315.25 million, down about 5.07% from RMB 332.10 million in the previous year[2] - The net profit for the reporting period was approximately RMB 130.05 million, an increase of about 1.54% compared to RMB 128.08 million for the year ended December 31, 2023[2] - The company's basic and diluted earnings per share for the reporting period were both approximately RMB 0.11, unchanged from the previous year[2] - The total revenue for the group for the year ending December 31, 2024, is RMB 1,313,611,769, a decrease of approximately 11.9% from RMB 1,491,153,988 in 2023[15] - The group reported a gross profit of RMB 315,246,834 for 2024, compared to RMB 332,102,942 in 2023, indicating a decrease of approximately 5.1%[15] - The group's revenue for the year ended December 31, 2024, decreased by 11.91% to approximately RMB 1,313.61 million from approximately RMB 1,491.15 million for the year ended December 31, 2023[43] Revenue Breakdown - Revenue from the supply of industrial gases decreased to RMB 961,497,921 in 2024 from RMB 998,622,439 in 2023, representing a decline of about 3.5%[19] - The supply of liquefied natural gas and gas transportation services generated revenue of RMB 213,195,599 in 2024, down 30.2% from RMB 305,356,594 in 2023[19] - Revenue from pipeline industrial gas supply was approximately RMB 961.50 million, a decrease of about 3.72% from RMB 998.62 million in 2023, attributed to the suspension of operations at the Tangshan high-strength plate gas plant[57] - Revenue from liquefied industrial gas supply was approximately RMB 113.16 million, down about 31.71% from RMB 165.70 million in 2023, mainly due to a decrease in liquid oxygen product prices[58] - Revenue from liquefied natural gas and gas transportation services was approximately RMB 213.20 million, a decrease of about 30.18% from RMB 305.36 million in 2023, primarily due to reduced demand from specific customers[58] - The technology support and management services segment achieved revenue of RMB 14.76 million with a gross profit margin of 63.00% for the year ended December 31, 2024[47] Expenses and Costs - Research and development expenses for the reporting period were approximately RMB 66.25 million, down from RMB 73.60 million in the previous year[3] - The net financial costs for 2024 were RMB 18,476,621, a decrease from RMB 21,715,449 in 2023, showing a reduction of about 15.3%[25] - The group's net financial costs for the reporting period were approximately RMB 18.48 million, a decrease of about 14.92% from RMB 21.72 million in 2023, due to lower interest expenses[64] - The total employee cost for the year ended December 31, 2024, was approximately RMB 52.64 million, a decrease from RMB 55.37 million in 2023, with a total of 324 employees[79] Assets and Liabilities - As of December 31, 2024, the company's debt-to-equity ratio was 28.2%, a decrease from 35.5% as of December 31, 2023[2] - The total assets less current liabilities amounted to RMB 1,896.47 million as of December 31, 2024, compared to RMB 1,804.72 million in the previous year[4] - The company's non-current liabilities decreased to RMB 252.57 million from RMB 291.29 million in the previous year[5] - The total equity attributable to the owners of the company increased to RMB 1,643.90 million from RMB 1,513.43 million in the previous year[5] - The group's total current assets as of December 31, 2024, were approximately RMB 839.31 million, a decrease of about 1.59% from RMB 852.86 million in 2023[67] - The current ratio as of December 31, 2024, was approximately 1.54, compared to 1.28 in 2023, indicating improved liquidity[67] Taxation - The income tax expense for 2024 was RMB 29,406,635, an increase of 19.5% from RMB 24,688,546 in 2023[27] - The current tax for China was RMB 20,042,126 in 2024, compared to RMB 10,866,235 in 2023, reflecting a significant increase[27] - The deferred tax expense decreased from RMB 13,822,311 in 2023 to RMB 9,364,509 in 2024[27] Dividends - The company did not recommend the payment of a final dividend for the reporting period, consistent with the previous year[2] - The board of directors did not recommend the payment of a final dividend for the reporting period, maintaining a prudent approach[68] Future Outlook - China's GDP growth for 2024 is projected at approximately 5.0%, with challenges anticipated in the steel industry due to high raw material prices and declining steel prices[48] - The steel industry is expected to face significant challenges in 2024, impacting profitability and potentially leading to reduced production and demand for industrial gases[50] - The industrial gas market in China is expected to continue growing, driven by national policy support, foreign investment, and the development of high-tech industries[51] - The outsourcing gas supply model is gaining market share, with expectations that it will gradually replace self-built gas supply models in the future[52] - The company aims to leverage its successful experience and technical advantages in outsourcing gas supply to seek external development opportunities[53] Other Information - The group has no significant contingent liabilities as of December 31, 2024[78] - The group has no foreign currency or interest rate hedging policies in place but regularly monitors foreign exchange risks[75] - The group aims to maintain an appropriate level of current assets and committed funding to meet its liquidity needs[70] - The group has not made any significant investments, acquisitions, or disposals of subsidiaries or associates during the reporting period[76] - The annual general meeting will be held on June 20, 2025[87] - The deadline for submitting transfer documents for shareholder registration is June 16, 2025[89] - The company will suspend share transfer registration from June 17 to June 20, 2025[89] - The annual performance announcement will be published on the Hong Kong Stock Exchange and the company's website in late April 2025[90] - The annual report for the year ending December 31, 2024, will be sent to shareholders in late April 2025[90]

Financial Performance - The company reported a revenue of RMB 1.2 billion for the six months ended June 30, 2024, representing a year-on-year increase of 15%[9]. - In the first half of 2024, the Group's revenue was approximately RMB640.75 million, a decrease from RMB708.08 million in the same period of 2023[10]. - The Group's revenue for the reporting period amounted to approximately RMB640.75 million, representing a decrease of approximately 9.51% compared to RMB708.08 million in the same period of 2023[24]. - Revenue for the six months ended June 30, 2024, was RMB 640.75 million, a decrease of 9.5% compared to RMB 708.08 million for the same period in 2023[89]. - Profit for the period attributable to owners of the Company was RMB 51.79 million, a decline of 25.5% from RMB 69.50 million in 2023[89]. - Total comprehensive income for the period was RMB 52.89 million, compared to RMB 68.39 million in the previous year, representing a decrease of 22.6%[89]. Revenue Segmentation - The Group's supply of industrial gas (pipeline and liquefied) generated revenue of RMB550.01 million, with a gross profit margin of 29.28%[15]. - The LNG and gas transmission service segment reported revenue of RMB83.71 million, with a significantly lower gross profit margin of 0.95% compared to the previous year[15]. - The technical support and management services segment achieved revenue of RMB7.03 million, with a high gross profit margin of 47.11%[15]. - External revenue from the supply of industrial gas was RMB 564,887,336, while revenue from LNG and gas transmission services was RMB 83,712,633, down from RMB 143,190,867 in the previous year[111]. Market Outlook and Strategy - The company provided a positive outlook, projecting a revenue growth of 10-15% for the next fiscal year[9]. - The company is expanding its market presence in the Hebei province, targeting a 25% increase in market share by the end of 2025[9]. - A strategic acquisition of a local competitor was completed, expected to enhance operational capabilities and increase annual revenue by RMB 300 million[9]. - The company aims to reduce carbon emissions by 20% by 2025 as part of its sustainability strategy[9]. Operational Efficiency - The gross profit margin improved to 35%, up from 32% in the previous year, reflecting better cost management[9]. - Research and development expenses increased by 30% to RMB 150 million, focusing on advanced gas technologies[9]. - The company plans to invest RMB 500 million in infrastructure improvements over the next two years to support growth initiatives[9]. Cash Flow and Liquidity - Cash and cash equivalents as of June 30, 2024, were RMB 177.78 million, down from RMB 202.62 million at the end of 2023[90]. - Trade receivables decreased to RMB 534.41 million from RMB 543.92 million at the end of 2023, indicating improved collection efforts[90]. - Net current assets increased to RMB 229.61 million, compared to RMB 184.62 million at the end of 2023, reflecting better liquidity management[90]. - The Group's total cash and bank balances were approximately RMB177.78 million as of June 30, 2024, down from RMB202.62 million at the end of 2023[35]. Related Party Transactions - For the six months ended June 30, 2024, the company reported significant purchases from related parties totaling RMB 383,540,334, a decrease from RMB 454,812,622 in the same period of 2023, representing a reduction of approximately 15.6%[157]. - Sales to related parties for the six months ended June 30, 2024, amounted to RMB 497,885,872, slightly down from RMB 507,573,722 in the previous year, indicating a decrease of about 1.4%[158]. - The company engaged in significant transactions with HBIS Company Limited, purchasing utilities and services worth RMB 9,143,000 in the first half of 2024, compared to RMB 43,065,879 in the same period of 2023, reflecting a substantial decline[157]. Employee and Management Costs - Total staff costs for the reporting period were approximately RMB 28.62 million, compared to RMB 25.99 million for the same period in 2023, reflecting an increase of about 10%[51]. - Key management personnel compensation for the six months ended June 30, 2024, totaled RMB 3,101,290, compared to RMB 2,491,908 for the same period in 2023, reflecting a 24.5% increase[171]. Financial Position - The Group's profit attributable to owners for the reporting period was approximately RMB51.79 million, down from RMB69.50 million in the same period of 2023[24]. - The Group's total capital commitments amounted to approximately RMB85.66 million as of June 30, 2024, down from approximately RMB155.03 million as of December 31, 2023[45]. - The Group's total borrowings amounted to RMB 520,693,112 as of June 30, 2024, a decrease from RMB 533,000,000 as of December 31, 2023[148]. Governance and Compliance - The Audit Committee has reviewed the unaudited interim financial information and confirmed compliance with accounting policies and internal controls[54]. - The Board does not recommend the payment of an interim dividend for the year ending 31 December 2024 (2023: Nil) [61]. - The interim condensed consolidated financial statements were reviewed in accordance with International Accounting Standard 34, ensuring compliance with relevant provisions[83].

Financial Performance - The group's revenue for the six months ended June 30, 2024, was approximately RMB 640.75 million, a decrease of about 9.51% compared to RMB 708.08 million for the same period in 2023[1] - The group's gross profit for the reporting period was approximately RMB 165.16 million, an increase of about 0.65% from RMB 164.10 million for the six months ended June 30, 2023[1] - The group's net profit for the period was approximately RMB 51.79 million, a decrease of about 25.48% compared to RMB 69.50 million for the same period in 2023[1] - Basic and diluted earnings per share attributable to equity shareholders were approximately RMB 0.04, down from RMB 0.06 for the six months ended June 30, 2023[1] - For the six months ended June 30, 2024, the total external revenue was RMB 640,754,255, a decrease from RMB 708,078,203 for the same period in 2023, representing a decline of approximately 9.5%[12] - The gross profit for the total segments was RMB 165,162,160, with a notable impairment loss on property, plant, and equipment amounting to RMB 37,891,436[12] - The company reported a significant customer contributing over 10% of total revenue, generating RMB 523,944,975 for the six months ended June 30, 2024, compared to RMB 513,088,429 in the same period of 2023[15] - The company reported a net loss from foreign exchange of RMB (1,157,908) for the six months ended June 30, 2024, compared to a gain of RMB 3,171,946 for the same period in 2023[20] - Financial costs for the six months ended June 30, 2024, amounted to RMB (9,360,979), a decrease from RMB (12,639,553) in the prior year[20] - The company's income tax expense for the six months ended June 30, 2024, was RMB 12,365,862, down from RMB 16,405,588 in the same period of 2023[22] Assets and Liabilities - As of June 30, 2024, the group's debt-to-asset ratio was 33.5%, compared to 35.5% as of December 31, 2023[1] - The group reported a decrease in trade receivables to approximately RMB 534.41 million from RMB 543.92 million as of December 31, 2023[4] - The group's total assets less current liabilities increased to approximately RMB 1,859.63 million from RMB 1,804.72 million as of December 31, 2023[5] - The group's cash and cash equivalents decreased to approximately RMB 177.78 million from RMB 202.62 million as of December 31, 2023[4] - The company's total liabilities decreased from RMB 4,788,025 as of December 31, 2023, to RMB 4,281,483 as of June 30, 2024, indicating a reduction of approximately 10.6%[33] - Current assets decreased by approximately 7.43% to about RMB 789.52 million, while current liabilities decreased by approximately 16.21% to about RMB 559.91 million[58] Revenue Segmentation - The segment revenue for industrial gas supply was RMB 556,443,823, while the liquefied natural gas and gas transportation services segment generated RMB 83,712,633, and the technical support and management services segment contributed RMB 7,030,115[12] - The revenue from liquefied industrial gas supply was RMB 82,397,763, showing an increase from RMB 79,972,753 in the previous year[16] - The revenue from liquefied natural gas and gas transportation services decreased significantly from RMB 143,190,867 in 2023 to RMB 83,712,633 in 2024, reflecting a decline of approximately 41.5%[16] - The revenue from the supply of pipeline industrial gases was approximately RMB 462.32 million, down 2.57% from RMB 474.53 million in the previous year, primarily due to the complete shutdown of Tangshan Steel's original steelmaking subsidiary[50] Expenses and Investments - The company's research and development expenses were approximately RMB 29.77 million, down from RMB 36.64 million in the same period last year[2] - The total cost of acquiring property, plant, and equipment for the six months ended June 30, 2024, was RMB 69,835,731, an increase from RMB 60,677,571 in the prior year[30] - The company recognized an impairment provision of RMB 37,891,436 for certain assets for the six months ended June 30, 2024, compared to no impairment in the same period of 2023[30] - The company incurred a total expenditure of RMB 530,344,162 for the six months ended June 30, 2024, down from RMB 606,763,764 in the prior year[21] Corporate Governance and Future Outlook - The company has adopted good corporate governance principles and has complied with all applicable code provisions during the reporting period[71] - The audit committee has reviewed the unaudited interim consolidated financial information for the reporting period, confirming no changes in the expected audit opinion for the financial statements ending December 31, 2024[72] - The group anticipates continued growth in industrial gas consumption in China, particularly in the electronics, pharmaceuticals, and lithium battery sectors over the next five years[45] - The group plans to leverage its successful experience with outsourced gas supply to seek external development opportunities in response to market trends[46] - The group expects stable growth in business development supported by strong customer capacity expansion, particularly with ongoing projects at Tangshan Steel[47] Employee and Training Investments - The company has a total of 333 employees as of June 30, 2024, compared to 323 employees as of December 31, 2023, with total employee costs amounting to approximately RMB 286.2 million, up from RMB 259.9 million in the same period last year[69] - The company plans to continue investing in employee training and development to enhance corporate culture and retain high-skilled personnel[68]

Financial Performance - In 2023, the Group's revenue reached RMB 1,491,154,000, a slight increase of 0.7% from RMB 1,481,644,000 in 2022[74]. - Profit before income tax for the year was RMB 152,765,000, down 5.4% from RMB 161,018,000 in the previous year[74]. - Profit attributable to owners of the Company was RMB 128,076,000, an increase of 13.5% compared to RMB 112,743,000 in 2022[74]. - Total assets decreased to RMB 2,472,961,000 from RMB 2,606,676,000 in 2022, reflecting a decline of 5.1%[74]. - The Group's total liabilities decreased significantly to RMB 959,531,000 from RMB 1,220,843,000, a reduction of 21.4%[74]. - The Group's total equity increased to RMB 1,513,430,000, up 9.2% from RMB 1,385,833,000 in 2022[74]. - Gross profit for 2023 amounted to approximately RMB332.10 million, a decrease of approximately 2.85% from the previous year, primarily due to a decrease in selling prices of lean krypton xenon liquid oxygen[82]. - The Group's gross profit margin for 2023 was 22.27%, compared to 23.07% in 2022[153]. Sales and Revenue Breakdown - The total sales of the Group's pipeline industrial gas reached approximately 3,855 million Nm3 in 2023, an increase from approximately 3,622 million Nm3 in 2022, with revenue of approximately RMB998.62 million, up from RMB927.74 million[7]. - Sales of liquefied industrial gas totaled approximately 210,041 tons in 2023, compared to approximately 190,553 tons in 2022, generating revenue of approximately RMB165.70 million, down from RMB228.03 million[7]. - Revenue from LNG and gas transmission services was approximately RMB305.36 million in 2023, slightly up from RMB305.21 million in 2022[7]. - Revenue from the supply of pipeline industrial gas increased by approximately 7.64% to RMB998.62 million, compared to RMB927.74 million in 2022[120]. - Revenue from the supply of liquefied industrial gas decreased by approximately 27.33% to RMB165.70 million, down from RMB228.03 million in 2022[120]. - The supply of industrial gas (pipeline and liquefied) generated revenue of approximately RMB 1,203.62 million with a gross profit margin of 26.64%[153]. - The LNG and gas transmission service segment reported revenue of approximately RMB 305.36 million, with a gross profit margin of 3.29%[153]. Operational Efficiency and Capacity - The Group's operational efficiency is expected to improve through technological innovations such as automatic load variation and steam heating[36]. - The Group's new Tangshan Gas New Area plant has three air separation units with a total capacity of 140,000 Nm3/hr, significantly enhancing production capacity and technology levels[36]. - The construction of a 60,000Nm3/hr oxygen generating plant by TTG is expected to commence operations by the end of 2024[96]. - The second set of 60,000Nm3/hr oxygen generating plant commenced construction, enhancing the Group's production capacity[69]. - The construction of hydrogen production units is underway to support two cold-rolled production lines at HBIS Company Tangshan Branch[96]. Financial Management and Position - The Group's gearing ratio improved to approximately 36% as of December 31, 2023, down from 42% in the previous year[15]. - Total cash and bank balances decreased to approximately RMB202.62 million as of December 31, 2023, from approximately RMB360.74 million in 2022[15]. - The Group's net debt increased to approximately RMB335.17 million as of December 31, 2023, compared to approximately RMB225.05 million in 2022[15]. - The Group's cash flow generated from operations is expected to meet future cash flow needs, indicating effective liquidity management[106]. - The Group's current ratio improved to approximately 1.28 as of December 31, 2023, compared to approximately 1.15 as of December 31, 2022[126]. - The Group has no significant contingent liabilities as of December 31, 2023, maintaining a stable financial position[108]. Research and Development - The management is focusing on accelerating the research and development of high value-added products based on market trends and customer needs, aiming to enhance brand influence and competitiveness[42]. - The Group has accelerated research and development efforts, resulting in the establishment of 6 new technology projects and the acquisition of a first-class award for technological advancement in 2023[151]. - The Group plans to continue expanding its market share in electronic special gas products to enhance future development prospects[118]. Market Outlook and Strategy - The industrial gas market in China is expected to continue growing, driven by national policies and technological advancements[8]. - The Group aims to accelerate its strategic layout across China and increase new market development through technological innovation[72]. - The Group plans to leverage its technical advantages as an outsourced gas supplier to explore external development opportunities[96]. - The Group has agreed to settle disciplinary actions with the Stock Exchange, acknowledging breaches of the Listing Rules and accepting sanctions[29]. Human Resources - The Group employed 323 employees as of December 31, 2023, down from 341 employees in the previous year, with total staff costs of approximately RMB55.37 million compared to RMB58.38 million in 2022[108]. Compliance and Governance - The Company confirmed compliance with the disclosure requirements under Chapter 14A of the Listing Rules for the Reporting Period[176]. - The Audit Committee consists of one non-executive director and two independent non-executive directors, who reviewed the audited consolidated financial statements for the reporting period[175]. - The Company acknowledges the Auditor's qualified opinion regarding the write-offs of Loan Receivables and Note Investment[184][188].

Financial Performance - The group's total revenue for the year ended December 31, 2023, was RMB 1,491,153,988, an increase from RMB 1,481,644,241 in 2022, representing a growth of approximately 0.65%[3] - The gross profit for the group in 2023 was RMB 332,102,942, compared to RMB 341,850,613 in 2022, indicating a decrease of about 2.18%[3] - The company's revenue for the year ended December 31, 2023, is approximately RMB 1,491.15 million, a year-on-year increase of about 0.64% from RMB 1,481.64 million in 2022[47] - Revenue for the reporting period was approximately RMB 1,491.15 million, an increase of about 0.64% compared to RMB 1,481.64 million for the year ended December 31, 2022[124] - Gross profit for the reporting period was approximately RMB 332.10 million, a decrease of about 2.85% from RMB 341.85 million for the year ended December 31, 2022[124] - Net profit for the reporting period was approximately RMB 128.08 million, an increase of about 13.61% compared to RMB 112.74 million for the year ended December 31, 2022[124] - Basic and diluted earnings per share attributable to equity shareholders were approximately RMB 0.11, up from RMB 0.09 for the year ended December 31, 2022[124] Revenue Breakdown - The supply of industrial gases (pipeline and liquefied) generated revenue of RMB 1,203,621,320 in 2023, up from RMB 1,194,342,987 in 2022, reflecting a growth of approximately 0.65%[3] - The total sales of pipeline industrial gases in 2023 reached approximately 3,855 million standard cubic meters, generating revenue of about RMB 998.62 million, compared to RMB 927.74 million in 2022[49] - Revenue from the supply of industrial gases through pipelines increased by approximately 7.64% to about RMB 998.62 million, up from RMB 927.74 million in the previous year, primarily due to increased usage[200] - Revenue from the supply of liquefied industrial gases decreased to RMB 165,703,046 in 2023 from RMB 228,032,728 in 2022, a decline of about 27.3%[4] - Revenue from the supply of liquefied industrial gases decreased by approximately 27.33% to about RMB 165.70 million, down from RMB 228.03 million in the same period last year, mainly due to a decline in the prices of certain products[200] - Revenue from the supply of liquefied natural gas and gas transportation services remained stable at approximately RMB 305.36 million, compared to RMB 305.21 million in the previous year[200] - Technical support and management services generated revenue of approximately RMB 2.92 million, compared to none in 2022[200] - Other sales revenue decreased by approximately 10.21% to about RMB 18.55 million, down from RMB 20.66 million in the same period last year, primarily due to a reduction in sales from the compressed natural gas business[200] Expenses and Liabilities - Administrative expenses decreased by approximately 33.81% to about RMB 54.39 million in 2023, down from RMB 82.18 million in 2022, primarily due to the absence of legal and professional fees related to the resumption of company shares trading[34] - The expected credit loss for trade receivables in the reporting period was approximately RMB 15.36 million, an increase of about 88.86% from RMB 8.14 million in 2022[58] - The company recorded a net loss of approximately RMB 17.75 million in other losses for the reporting period, compared to a net gain of RMB 11.87 million in 2022[56] - The total current liabilities of the group as of December 31, 2023, were approximately RMB 6,682.4 million, a decrease of about 22.34% from RMB 8,604.9 million as of December 31, 2022[85] - The total liabilities decreased from RMB 584,316,014 in 2022 to RMB 371,046,210 in 2023, indicating a reduction of approximately 36.4%[177] Assets and Investments - As of December 31, 2023, the company's cash and bank balances totaled approximately RMB 202.62 million, down from RMB 360.74 million on December 31, 2022[60] - The total current assets of the group amounted to approximately RMB 8,528.6 million, a decrease of about 13.92% compared to RMB 9,907.9 million as of December 31, 2022[85] - The company acquired property, plant, and equipment amounting to RMB 116,727,646 in 2023, down from RMB 151,402,718 in 2022[181] - The company has not recorded any sales of property, plant, and equipment in 2023, consistent with 2022[181] Corporate Governance and Compliance - The company has adopted the principles and provisions of the Corporate Governance Code as a benchmark for its corporate governance practices and has complied with all applicable provisions during the reporting period[97] - An independent investigation was completed in March 2022, focusing on the involvement of certain executives in business activities from January 1, 2021, to April 30, 2021, with findings indicating potential governance issues[99] - The company provided short-term loans totaling RMB 118,000,000 to three borrowers between November 30, 2020, and December 1, 2020, without prior board approval, which is a violation of governance protocols[102] - The company’s financial control system requires board approval for transactions exceeding RMB 1,000,000 that are not part of pre-approved budget items, which was not adhered to in the recent transactions[106] - The company will continue to review and monitor its corporate governance practices to maintain high standards[97] Future Outlook - The group expects stable business growth in the future due to increased demand for industrial gas products as customer production capacity expands[28] - The group is actively developing specialty gas products to enhance its future growth prospects in the electronic specialty gas market[26] - The construction of a 60,000Nm3/hr oxygen production facility is expected to be operational by the end of 2024[29] - The company anticipates a GDP growth of approximately 5.2% in China for 2023, despite challenges in the steel industry due to high raw material prices and declining steel prices[197] - The company aims to leverage opportunities arising from the development of gas supply models in the industrial gas sector[196]

Financial Performance - The Group's total revenue for the first half of 2023 was approximately RMB708.08 million, representing a year-on-year increase of 11.25% from RMB636.43 million in the same period of 2022[41]. - The gross profit for the Group in the first half of 2023 was approximately RMB164.10 million, with a gross profit margin of 23.18%, compared to RMB143.45 million and a margin of 22.54% in the same period of 2022[41]. - Operating profit increased to RMB98,546,648 from RMB74,653,780, representing a growth of 32.0%[161]. - Profit attributable to owners of the Company for the period was RMB69,501,507, compared to RMB41,630,615 in the previous year, marking a significant increase of 67.0%[161]. - Total comprehensive income for the period was RMB68,390,164, up from RMB36,667,290, indicating strong overall performance[161]. Trade Receivables and Impairment - As of June 30, 2023, the provision for impairment loss for trade receivables was approximately RMB13.79 million, an increase from RMB8.14 million as of December 31, 2022[15]. - Approximately 97% of trade receivables were payable by HBIS and HBIS Group as of June 30, 2023, consistent with the figure from December 31, 2022[15]. - The management believes that the inherent credit risk of the Group's unsettled trade receivables balance is insignificant due to a sound history of receivables[15]. - The Group has made an impairment provision for trade receivables in accordance with the principle of prudence[15]. - The Group's management evaluated forward-looking information and concluded that there is no significant increase in credit risk[15]. Liquidity and Financial Position - As of June 30, 2023, the total cash and bank balances were approximately RMB301.39 million, down from RMB360.74 million as of December 31, 2022[136]. - The Group's bank and other borrowings amounted to approximately RMB618.72 million as of June 30, 2023, compared to RMB585.79 million as of December 31, 2022[136]. - The gearing ratio was approximately 42.55% as of June 30, 2023, slightly up from 42.27% as of December 31, 2022[136]. - The Group aims to maintain an appropriate level of current assets to satisfy its liquidity needs, with expected cash flow from operations to meet future demands[31]. - The Group's liquidity risk is managed through regular monitoring of cash flow and bank positions, ensuring it can meet short-term and long-term liquidity needs[31]. Investments and Capital Commitments - As of June 30, 2023, the Group's total capital commitments amounted to approximately RMB129.05 million, compared to RMB126.13 million as of December 31, 2022, primarily for the purchase of property, plant, and equipment[38]. - The Group has utilized RMB246,950,000 of the IPO proceeds, representing approximately 83.0% of the total, with RMB50,553,000 remaining unutilized, which is about 17.0%[26]. - There were no significant investments, acquisitions, or disposals during the reporting period[37]. - The Group plans to actively develop noble gas and special gas products to enhance its market share in electronic special gas products[43]. Corporate Governance - The Company has complied with all applicable code provisions set out in the Corporate Governance Code throughout the Reporting Period[88]. - The Company is committed to maintaining high standards of corporate governance to safeguard the interests of shareholders[87]. - The Audit Committee has maintained thorough discussions with the Auditor regarding the Audit Qualifications and Review Qualifications, with no disagreements noted[79]. - The Company has adopted a code of conduct regarding directors' securities transactions that meets or exceeds the required standards[89]. Auditor's Opinion and Investigations - The Company acknowledged the qualified opinion issued by the Auditor regarding the write-off of three overdue loan receivables totaling RMB50,000,000, RMB53,522,000, and RMB14,478,000[59]. - The Auditor issued a qualified review conclusion on the Company's unaudited interim condensed consolidated financial statements for the six months ended 30 June 2023, affecting the comparability of figures with the previous year[70]. - The Independent Investigation was completed in March 2022, revealing key findings that impacted the financial statements preparation for the year ended December 31, 2020[185]. - The investigation included a review of internal control policies and procedures related to transactions, with interviews conducted with relevant personnel to assess the business rationale behind the transactions[183]. Future Outlook and Strategic Initiatives - The industrial gas industry in China is expected to grow steadily, driven by national policies and foreign investment, with a projected increase in industrial gas consumption over the next five years[43]. - The Group's future outlook includes potential expansions and investments in new technologies related to industrial gases[175]. - The Group is engaged in strategic initiatives to enhance its market presence and operational efficiency in the industrial gas sector[175]. Share Option Scheme - The Share Option Scheme was adopted on June 17, 2020, and is effective for a period of 10 years from December 29, 2020[115]. - The total number of shares that may be issued under the Share Option Scheme shall not exceed 10% of the shares in issue as at the Listing Date, which is capped at 120,000,000 shares[119]. - No options were granted under the Share Option Scheme since its adoption, and there were no outstanding share options as of June 30, 2022[126].

[Interim Results Announcement for the Six Months Ended June 30, 2023](index=1&type=section&id=Interim%20Results%20Announcement) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The Group achieved significant financial growth during the reporting period, with substantial year-on-year increases in revenue, gross profit, and net profit, and a doubling of earnings per share. The gearing ratio slightly increased, but the Board did not recommend an interim dividend | Indicator | Six Months Ended June 30, 2023 (RMB million) | Six Months Ended June 30, 2022 (RMB million) | Year-on-Year Growth Rate | | :--- | :--- | :--- | :--- | | Revenue | 708.08 | 636.43 | 11.26% | | Gross Profit | 164.10 | 143.45 | 14.40% | | Net Profit | 69.50 | 41.63 | 66.95% | | Basic and Diluted Earnings Per Share | RMB 0.06 | RMB 0.03 | 100.00% | | Gearing Ratio (Period-end) | 42.55% (June 30, 2023) | 42.27% (December 31, 2022) | 0.28 percentage points | | Interim Dividend | Not recommended | Nil | - | [Unaudited Consolidated Interim Financial Statements](index=2&type=section&id=Unaudited%20Consolidated%20Interim%20Financial%20Statements) This section presents the unaudited consolidated interim statement of comprehensive income and consolidated interim statement of financial position for the six months ended June 30, 2023, reflecting the Group's operating results and financial position during the reporting period | Indicator | Six Months Ended June 30, 2023 (RMB) | Six Months Ended June 30, 2022 (RMB) | | :--- | :--- | :--- | | Revenue | 708,078,203 | 636,434,507 | | Cost of Revenue | (543,975,093) | (492,988,332) | | Gross Profit | 164,103,110 | 143,446,175 | | Operating Profit | 98,546,648 | 74,653,780 | | Profit Before Income Tax | 85,907,095 | 61,627,476 | | Profit for the Period Attributable to Owners of the Company | 69,501,507 | 41,630,615 | | Indicator | As of June 30, 2023 (RMB) | As of December 31, 2022 (RMB) | | :--- | :--- | :--- | | Non-current Assets | 1,611,881,279 | 1,615,885,963 | | Current Assets | 1,016,534,224 | 990,790,481 | | Current Liabilities | 779,432,396 | 860,485,398 | | Non-current Liabilities | 394,759,884 | 360,357,987 | | Net Assets | 1,454,223,223 | 1,385,833,059 | | Total Equity | 1,454,223,223 | 1,385,833,059 | [Notes to the Interim Condensed Consolidated Financial Statements](index=5&type=section&id=Notes%20to%20the%20Interim%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes to the interim condensed consolidated financial statements, covering general information, basis of preparation, significant accounting policies, independent investigation findings, segment information, and specific explanations for various asset, liability, and profit and loss items [General Information and Basis of Preparation](index=5&type=section&id=General%20Information%20and%20Basis%20of%20Preparation) The Company was incorporated in the Cayman Islands with investment holding as its principal business, while the Group primarily engages in industrial gas production and supply in China. Interim financial information is prepared in accordance with IAS 34 and the HKEX Listing Rules, consistent with 2022 annual financial statements' accounting policies, except for the adoption of new and revised IFRSs - The Company was incorporated as an exempted company in the Cayman Islands on August 4, 2006, with its principal place of business in the People's Republic of China[11](index=11&type=chunk) - The Group is principally engaged in the production and supply of industrial gases in China, with investment holding as its main business[171](index=171&type=chunk) - The interim financial information has been reviewed, is unaudited, and prepared in accordance with International Accounting Standard 34 and the applicable disclosure provisions of the HKEX Listing Rules[175](index=175&type=chunk)[176](index=176&type=chunk) - The accounting policies and basis of preparation used for the interim financial information are consistent with those used for the annual financial statements for the year ended December 31, 2022, except for the adoption of new and revised International Financial Reporting Standards[33](index=33&type=chunk)[235](index=235&type=chunk) [Significant Accounting Policies](index=5&type=section&id=Significant%20Accounting%20Policies) The Group adopted new and revised International Financial Reporting Standards, including amendments to IAS 1, IAS 8, and IAS 12, with no significant impact expected on the interim condensed consolidated financial statements - The Group adopted new and revised International Financial Reporting Standards, including amendments to IAS 1 and IFRS Practice Statement 2 (Disclosure of Accounting Policies), amendments to IAS 8 (Definition of Accounting Estimates), amendments to IAS 12 (Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction), and amendments to IAS 1 (Classification of Liabilities as Current or Non-current)[190](index=190&type=chunk) - The Directors anticipate that the future application of these amendments and modifications will not have any significant impact on the interim condensed consolidated financial statements[213](index=213&type=chunk) [Independent Investigation and Findings](index=6&type=section&id=Independent%20Investigation%20and%20Findings) The Board established an independent investigation committee to probe four transactions raised by the former auditor, finding that former Executive Director Mr. Chen and former CFO Mr. Bai unauthorizedly entered into RMB 118 million in loan transactions and HKD 80 million in note investments without Board approval, lacking commercial substance and due diligence. These amounts remain unpaid, with full impairment provisions made and legal actions pursued - The Board established an independent investigation committee on March 24, 2021, to conduct an independent factual investigation into four transactions raised by the former auditor to assess their commercial substance and rationale[177](index=177&type=chunk)[199](index=199&type=chunk) - The investigation found that former Executive Director Mr. Chen and former Chief Financial Officer Mr. Bai unauthorizedly entered into three loan agreements totaling **RMB 118 million** and a note investment agreement of **HKD 80 million** (approximately **RMB 66.4 million**) without Board approval[181](index=181&type=chunk)[180](index=180&type=chunk)[20](index=20&type=chunk) - These transactions were not discussed or approved by the Board, violating the Company's financial control system policies, and lacked background checks or due diligence on the borrowers, with no collateral provided as security[18](index=18&type=chunk)[20](index=20&type=chunk)[41](index=41&type=chunk)[134](index=134&type=chunk) - Mr. Chen claimed the loan funds were for dividends payable to the controlling shareholder, but the use was changed without the controlling shareholder's consent and not approved according to the Company's articles of association[39](index=39&type=chunk) - As of the reporting period, all loans and note investments remain unpaid, and the Group has made full impairment provisions of **RMB 118 million** and **RMB 66.4 million**, and has issued a writ of summons in the High Court of Hong Kong and obtained default judgments[211](index=211&type=chunk)[232](index=232&type=chunk)[188](index=188&type=chunk)[212](index=212&type=chunk) [Revenue and Segment Information](index=11&type=section&id=Revenue%20and%20Segment%20Information) The Group primarily engages in the production and supply of industrial gases (pipeline and liquefied) and liquefied natural gas and gas transmission services. During the reporting period, both industrial gas and LNG and gas transmission services segments saw growth in revenue and gross profit, with industrial gas contributing the majority - The Group is principally engaged in the production and supply of industrial gases, liquefied natural gas, and related gas transmission services in China[236](index=236&type=chunk) | Segment | Six Months Ended June 30, 2023 (RMB) | Six Months Ended June 30, 2022 (RMB) | | :--- | :--- | :--- | | Revenue from Supply of Industrial Gases (Pipeline and Liquefied) | 573,840,720 | 529,775,497 | | Gross Profit from Supply of Industrial Gases (Pipeline and Liquefied) | 159,969,044 | 140,401,612 | | Revenue from Liquefied Natural Gas and Gas Transmission Services | 143,190,867 | 113,701,296 | | Gross Profit from Liquefied Natural Gas and Gas Transmission Services | 4,134,066 | 3,044,563 | | Total Group Revenue | 708,078,203 | 636,434,507 | | Total Group Gross Profit | 164,103,110 | 143,446,175 | | Revenue Category | Six Months Ended June 30, 2023 (RMB) | Six Months Ended June 30, 2022 (RMB) | | :--- | :--- | :--- | | Supply of Pipeline Industrial Gases | 474,525,842 | 410,797,876 | | Supply of Liquefied Industrial Gases | 79,972,753 | 103,190,517 | | Supply of Liquefied Natural Gas and Gas Transmission Services | 143,190,867 | 113,701,296 | | Others | 10,388,741 | 8,744,818 | | Total | 708,078,203 | 636,434,507 | - All of the Group's revenue is derived from contracts with customers, and customer advances are presented as contract liabilities[240](index=240&type=chunk)[241](index=241&type=chunk) [Other Income and Gains](index=14&type=section&id=Other%20Income%20and%20Gains) During the reporting period, the Group's other income and net other gains both decreased, primarily due to the absence of government grants for other income and a decline in net foreign exchange gains for net other gains | Item | Six Months Ended June 30, 2023 (RMB) | Six Months Ended June 30, 2022 (RMB) | | :--- | :--- | :--- | | Government Grants | – | 458,925 | | Other Income | 46,728 | 10,484 | | Total Other Income | 46,728 | 469,409 | | Net Foreign Exchange Gain | 3,171,946 | 8,806,894 | | Other Gains | (327,057) | (150,000) | | Total Net Other Gains | 2,844,889 | 8,656,894 | - Other income decreased by approximately **90.05%**, mainly due to the absence of government subsidies[125](index=125&type=chunk) - Net other gains decreased by approximately **67.14%**, primarily due to a decrease in net foreign exchange gains[125](index=125&type=chunk) [Finance Costs - Net](index=15&type=section&id=Finance%20Costs%20-%20Net) During the reporting period, the Group's net finance costs slightly decreased, primarily due to increased interest income from bank deposits, despite a rise in interest expenses on bank borrowings | Item | Six Months Ended June 30, 2023 (RMB) | Six Months Ended June 30, 2022 (RMB) | | :--- | :--- | :--- | | Interest Income from Bank Deposits | 1,599,306 | 703,769 | | Interest Expense on Bank Borrowings | (14,817,918) | (14,793,157) | | Interest Expense on Discounted Bills Receivable | (526,923) | – | | Interest Expense on Lease Liabilities | (82,886) | (101,023) | | Add: Capitalized Amount | 1,188,868 | 1,164,107 | | Finance Costs Incurred | (14,238,859) | (13,730,073) | | Finance Costs - Net | (12,639,553) | (13,026,304) | - Net finance costs decreased by approximately **2.97%**, primarily due to an increase in interest income[114](index=114&type=chunk) - Finance costs for qualifying assets have been capitalized at an average annual interest rate of **4.99%**[63](index=63&type=chunk) [Income Tax Expense](index=16&type=section&id=Income%20Tax%20Expense) The Group's income tax expense decreased during the reporting period, mainly due to the utilization of unrecognized accumulated tax losses. The Group's PRC subsidiaries benefit from preferential tax rates as high-tech enterprises and can enjoy super-deduction policies for R&D expenses | Item | Six Months Ended June 30, 2023 (RMB) | Six Months Ended June 30, 2022 (RMB) | | :--- | :--- | :--- | | Current Tax - PRC Enterprise Income Tax | 9,028,186 | 15,127,173 | | Deferred Tax - Charged to Profit or Loss for the Period | 7,377,402 | 4,869,688 | | Total Income Tax Expense | 16,405,588 | 19,996,861 | - Income tax expense decreased by approximately **17.96%**, mainly due to the utilization of certain unrecognized accumulated tax losses[85](index=85&type=chunk) - The Company is incorporated in the Cayman Islands and is not subject to income tax. Its PRC subsidiaries, Tanggang Gas and Luancheng, are recognized as high-tech enterprises and enjoy a preferential income tax rate of **15%**[65](index=65&type=chunk)[92](index=92&type=chunk) - Enterprises engaged in R&D activities are entitled to deduct **200%** of their R&D expenses as deductible expenses (super-deduction)[224](index=224&type=chunk) [Dividends and Earnings Per Share](index=17&type=section&id=Dividends%20and%20Earnings%20Per%20Share) The Board did not recommend an interim dividend for the year ending December 31, 2023. During the reporting period, basic and diluted earnings per share attributable to owners of the Company were RMB 0.06, an increase from the prior year - The Board did not recommend an interim dividend for the year ending December 31, 2023 (2022: Nil)[27](index=27&type=chunk)[225](index=225&type=chunk)[297](index=297&type=chunk) | Item | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company (RMB) | 69,501,507 | 41,630,615 | | Weighted Average Number of Ordinary Shares (Number) | 1,200,000,000 | 1,200,000,000 | | Basic and Diluted Earnings Per Share (RMB) | 0.06 | 0.03 | - Diluted earnings per share are the same as basic earnings per share as no dilutive events existed for the Group for the six months ended June 30, 2023 and 2022[226](index=226&type=chunk) [Property, Plant and Equipment & Right-of-use Assets](index=18&type=section&id=Property%2C%20Plant%20and%20Equipment%20%26%20Right-of-use%20Assets) During the reporting period, the Group made additions to property, plant and equipment totaling approximately RMB 60.68 million, and recognized additions to right-of-use assets and lease liabilities of RMB 1.86 million - For the six months ended June 30, 2023, the Group acquired items of property, plant and equipment, including construction in progress, at a total cost of **RMB 60,677,571**[96](index=96&type=chunk) - For the six months ended June 30, 2023, the Group recognized additions to right-of-use assets and lease liabilities of **RMB 1,861,270** respectively[270](index=270&type=chunk) [Trade and Other Receivables](index=18&type=section&id=Trade%20and%20Other%20Receivables) The Group's total trade receivables increased, with impairment loss provisions recognized. Most receivables are from HBIS Group and its subsidiaries, with credit terms typically not exceeding 180 days | Item | As of June 30, 2023 (RMB) | As of December 31, 2022 (RMB) | | :--- | :--- | :--- | | Trade Receivables | 659,336,790 | 575,170,544 | | Less: Provision for Impairment Losses | (13,794,408) | (8,135,000) | | Net Trade Receivables | 645,542,382 | 567,035,544 | | Ageing Analysis (Based on Invoice Date) | As of June 30, 2023 (RMB) | As of December 31, 2022 (RMB) | | :--- | :--- | :--- | | Up to 6 Months | 578,129,894 | 529,420,167 | | 6 Months to 1 Year | 43,055,728 | 14,346,868 | | 1 to 2 Years | 5,010,701 | 22,230,873 | | Over 2 Years | 19,346,059 | 1,037,636 | | Total | 645,542,382 | 567,035,544 | - As of June 30, 2023, a provision for impairment losses of approximately **RMB 13.79 million** was made for trade receivables, mainly due to some trade receivables exceeding six months, which were considered to have certain credit risk[87](index=87&type=chunk) - Approximately **97%** of the Group's trade receivables are due from HBIS Group and its subsidiaries, with credit terms typically not exceeding 180 days[87](index=87&type=chunk) [Loans Receivable](index=19&type=section&id=Loans%20Receivable) Three loan agreements totaling RMB 118 million entered into by the Group in 2020 remained unpaid as of the reporting period end. These loans were fully written off and fully impaired as of December 31, 2022 - The Group entered into three loan agreements with Company A, Company B, and Company C on November 30 and December 1, 2020, with a total principal amount of **RMB 118,000,000**, which were due for repayment on December 30, 2020, but remained unpaid as of June 30, 2023, and December 31, 2022[72](index=72&type=chunk)[122](index=122&type=chunk)[98](index=98&type=chunk)[271](index=271&type=chunk) - The Group recorded an impairment loss of **RMB 118,000,000** in the consolidated statement of comprehensive income for the year ended December 31, 2020, and fully wrote off these loans for the year ended December 31, 2022[271](index=271&type=chunk) [Note Investments](index=20&type=section&id=Note%20Investments) A HKD 80 million (approximately RMB 66.4 million) note investment entered into by the Group with Company D in January 2021 remained unpaid as of the reporting period end. The note was fully written off and fully impaired as of December 31, 2022 - The Group entered into an investment agreement with Company D on January 18, 2021, to subscribe for its secured loan notes totaling **HKD 80 million** (approximately **RMB 66.4 million**), with a fixed annual return rate of **4.5%**, due for repayment on December 17, 2021[99](index=99&type=chunk) - As of June 30, 2023, and December 31, 2022, this note investment remained unpaid[250](index=250&type=chunk) - The Group recorded an impairment loss of **RMB 66,400,000** in the consolidated statement of comprehensive income for the year ended December 31, 2021, and fully wrote off this note for the year ended December 31, 2022[74](index=74&type=chunk) [Deposits, Prepayments and Other Receivables](index=21&type=section&id=Deposits%2C%20Prepayments%20and%20Other%20Receivables) The Group's total deposits, prepayments, and other receivables decreased, primarily comprising recoverable VAT, amounts due from related parties, utility and other prepayments, deposits, and other items | Item | As of June 30, 2023 (RMB) | As of December 31, 2022 (RMB) | | :--- | :--- | :--- | | Recoverable VAT | 8,270,517 | 10,190,850 | | Amounts Due from Related Parties | 59,733 | 67,629 | | Utility and Other Prepayments | 7,238,435 | 9,267,645 | | Deposits | 2,075,620 | 2,338,587 | | Others | 761,454 | 703,299 | | Total | 18,405,759 | 22,568,010 | [Cash and Cash Equivalents](index=21&type=section&id=Cash%20and%20Cash%20Equivalents) The Group's cash and cash equivalents decreased at the end of the reporting period | Item | As of June 30, 2023 (RMB) | As of December 31, 2022 (RMB) | | :--- | :--- | :--- | | Cash at Bank | 301,394,838 | 360,738,465 | [Trade and Other Payables](index=22&type=section&id=Trade%20and%20Other%20Payables) The Group's total trade and other payables decreased, with trade payables constituting the largest portion and a significant reduction in dividends payable | Item | As of June 30, 2023 (RMB) | As of December 31, 2022 (RMB) | | :--- | :--- | :--- | | Trade Payables | 354,635,468 | 381,680,822 | | Payables for Construction and Equipment | 53,499,837 | 49,457,365 | | Dividends Payable | 50,671,500 | 100,671,500 | | Payables for Operating Service Fees | 24,585,000 | 21,168,000 | | Tax Payables | 557,660 | 829,098 | | Salaries and Bonuses Payable | 4,272,209 | 6,649,128 | | Professional Service Fees Payable | 11,542,102 | 13,744,238 | | Deposits | 1,734,800 | 1,887,472 | | Interest Payable | 1,401,811 | 1,418,960 | | Others | 8,788,035 | 6,809,431 | | Total | 511,688,422 | 584,316,014 | | Ageing Analysis (Based on Invoice Date) | As of June 30, 2023 (RMB) | As of December 31, 2022 (RMB) | | :--- | :--- | :--- | | Less than 1 Year | 295,341,268 | 320,585,126 | | 1 to 2 Years | 50,767,520 | 55,841,805 | | 2 to 3 Years | 7,038,027 | 3,662,931 | | Over 3 Years | 1,488,653 | 1,590,960 | | Total | 354,635,468 | 381,680,822 | [Management Discussion and Analysis](index=23&type=section&id=Management%20Discussion%20and%20Analysis) This section details the Group's business performance, financial condition, risk management strategies, employee and remuneration policies, and use of global offering proceeds during the reporting period. The Group benefited from stable growth in China's steel industry and the development of industrial gas outsourcing, while actively expanding into rare and specialty gas markets [Business Review](index=23&type=section&id=Business%20Review) The Group primarily engages in industrial gas production and supply in China, benefiting from stable growth in the Chinese steel industry. The total volume of the Group's pipeline and liquefied industrial gas business increased, and LNG product sales significantly rose, driving overall revenue growth. The Group actively expands into rare and specialty gas markets, leveraging opportunities from the developing outsourced gas supply model - The Group is principally engaged in the production and supply of industrial gases in China, with revenue primarily derived from steel production companies[275](index=275&type=chunk)[123](index=123&type=chunk) - In the first half of 2023, China's crude steel output increased by **1.3%** year-on-year, pig iron output by **2.7%** year-on-year, and steel product output by **4.4%** year-on-year, providing a stable environment for the Group's business[254](index=254&type=chunk) - The Group's total volume of pipeline and liquefied industrial gas business increased compared to the same period last year, and sales of Luancheng's liquefied natural gas products significantly rose in the market, leading to an **11.26%** year-on-year increase in revenue for the first half of 2023[276](index=276&type=chunk) - The Group closely follows industry trends, actively develops rare and specialty gas products, and expands its market share in electronic specialty gas products to enhance future development prospects[79](index=79&type=chunk) - The outsourced gas supply model offers low operating costs, high supply stability, high resource utilization efficiency, and low one-time financial costs, with its market share steadily growing in recent years, presenting development opportunities for the Group[107](index=107&type=chunk)[124](index=124&type=chunk) [Financial Review](index=26&type=section&id=Financial%20Review) During the reporting period, the Group's revenue and gross profit both grew, with a substantial increase in net profit. Pipeline industrial gas revenue rose, while liquefied industrial gas revenue decreased. LNG and gas transmission services revenue significantly increased. Administrative expenses declined due to reduced legal and professional fees, but credit loss provisions for trade receivables increased | Indicator | Six Months Ended June 30, 2023 (RMB million) | Six Months Ended June 30, 2022 (RMB million) | Year-on-Year Growth Rate | | :--- | :--- | :--- | :--- | | Revenue | 708.08 | 636.43 | 11.26% | | Gross Profit | 164.10 | 143.45 | 14.40% | | Profit Attributable to Owners of the Company | 69.50 | 41.63 | 66.95% | | Earnings Per Share | RMB 0.06 | RMB 0.03 | 100.00% | - Revenue from pipeline industrial gases increased by approximately **15.51%**, mainly due to increased demand for pipeline gas resulting from higher steel production by HBIS Laoting Steel Co., Ltd. and Tangshan Medium and Heavy Plate Co., Ltd[82](index=82&type=chunk) - Revenue from liquefied industrial gases decreased by approximately **22.50%**, primarily due to a decline in prices for crude krypton-xenon and liquid oxygen products[82](index=82&type=chunk)[284](index=284&type=chunk) - Revenue from liquefied natural gas and gas transmission services increased by approximately **25.94%**, mainly due to an increase in the supply of raw materials available for LNG production at the Luancheng plant[284](index=284&type=chunk) - Administrative expenses decreased by approximately **36.69%**, primarily due to the absence of legal and professional fees incurred in the prior period related to the resumption of share trading[261](index=261&type=chunk) - Credit loss provisions for trade receivables increased by approximately **63.53%**, mainly due to an increase in overall trade receivables and trade receivables with ageing exceeding six months[285](index=285&type=chunk) [Risk Management](index=28&type=section&id=Risk%20Management) The Group faces foreign currency, credit, liquidity, and interest rate risks. These risks are managed through regular monitoring, assessing customer credit quality, and maintaining appropriate liquid asset levels. Certain property, plant, and equipment are pledged for loan financing - The principal risks arising from the Group's financial instruments are foreign currency risk, credit risk, liquidity risk, and interest rate risk[263](index=263&type=chunk) - Approximately **97%** of the Group's trade receivables are due from HBIS Group and its subsidiaries; the credit quality of these customers is assessed, and impairment provisions are made based on prudence principles[87](index=87&type=chunk) - The Group does not use derivative financial instruments to hedge its foreign exchange risk but regularly reviews and considers foreign exchange risk to be non-material[116](index=116&type=chunk) - The Group manages liquidity risk by regularly monitoring cash and bank balances, forecasting cash flows, and assessing the level of liquid assets[140](index=140&type=chunk) - As of June 30, 2023, certain property, plant and equipment of the Group, amounting to approximately **RMB 16.42 million**, were pledged to banks for loan facilities granted to the Group[117](index=117&type=chunk) - As of June 30, 2023, the Group had no significant contingent liabilities[291](index=291&type=chunk) [Post-Reporting Period Events](index=30&type=section&id=Post-Reporting%20Period%20Events) There were no significant events for the Group subsequent to the reporting period and up to the date of this announcement - There were no significant events for the Group subsequent to the reporting period and up to the date of this announcement[142](index=142&type=chunk) [Employees and Remuneration Policy](index=30&type=section&id=Employees%20and%20Remuneration%20Policy) The Group highly values talent, employing 354 staff as of June 30, 2023, and offering competitive remuneration packages. The Group invests in continuous education and training programs to enhance employee skills and knowledge, and adopted a share option scheme in 2020 for long-term incentives - As of June 30, 2023, the Group employed a total of **354** staff, with total staff costs of approximately **RMB 25.99 million**[120](index=120&type=chunk) - The Group provides competitive remuneration packages to its employees and invests in continuous education and training programs to regularly update skills and knowledge[119](index=119&type=chunk)[127](index=127&type=chunk) - The Group adopted a share option scheme on June 17, 2020, with a 10-year validity, aiming to grant options to eligible employees as long-term incentives, but no share options have been granted, cancelled, or lapsed as of the date of this announcement[143](index=143&type=chunk) [Use of Proceeds from Global Offering](index=31&type=section&id=Use%20of%20Proceeds%20from%20Global%20Offering) The net proceeds from the global offering amounted to RMB 298.1 million. As of this announcement date, the Company utilized approximately 83.0% of the proceeds, primarily for the procurement and relocation of air separation units. The unutilized portion will be progressively used according to the proposed uses and updated timetable disclosed in the prospectus - The net proceeds from the global offering amounted to **HKD 315.9 million** (approximately **RMB 298.1 million**)[292](index=292&type=chunk) - As of the date of this announcement, the Company had utilized **RMB 246,950,000** of the initial public offering proceeds, representing approximately **83.0%**. The unutilized amount was **RMB 50,553,000**, representing approximately **17.0%**[292](index=292&type=chunk) | Planned Use of IPO Proceeds | IPO Proceeds Utilized (RMB thousand) | IPO Proceeds Unutilized (RMB thousand) | | :--- | :--- | :--- | | Procurement and Relocation of Air Separation Units related to Tanggang Gas New Area Plant Development (Phase 1) | 246,950 | – | | Procurement and Relocation of Air Separation Units related to Tanggang Gas New Area Plant Development (Phase 2) | – | 50,553 | | Working Capital and Other General Corporate Purposes | 27,300 | – | | Total | 274,250 | 50,553 | - During the reporting period, the Company did not use the initial public offering proceeds. There were no changes to the proposed use or allocation[292](index=292&type=chunk) [Corporate Governance and Other Information](index=33&type=section&id=Corporate%20Governance%20and%20Other%20Information) The Group is committed to maintaining high corporate governance standards and has complied with all applicable provisions of the HKEX Corporate Governance Code. The Audit Committee reviewed the interim results. Auditors issued qualified opinions and conclusions on past loan transactions and note investments, and management and the Audit Committee are working closely with auditors to remove these qualifications in future financial years [Corporate Governance](index=33&type=section&id=Corporate%20Governance) The Company adopted the principles and code provisions of the HKEX Corporate Governance Code and complied with all applicable code provisions during the reporting period to safeguard the overall interests of shareholders - The Company adopted the principles and code provisions of the Corporate Governance Code set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited as the basis for its corporate governance practices[44](index=44&type=chunk) - The Company complied with all applicable code provisions contained in the Corporate Governance Code during the reporting period[45](index=45&type=chunk) [Securities Transactions](index=33&type=section&id=Securities%20Transactions) The Company adopted a code of conduct for directors' securities transactions, confirming all directors complied with the standard code during the reporting period. Neither the Company nor its subsidiaries purchased, sold, or redeemed its listed securities during the period - The Company adopted a code of conduct regarding directors' securities transactions, and all Directors confirmed their compliance with the required standards set out in the Model Code throughout the reporting period[47](index=47&type=chunk) - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[46](index=46&type=chunk) [Audit Committee Review](index=33&type=section&id=Audit%20Committee%20Review) The Company's Audit Committee reviewed the Group's unaudited interim condensed consolidated financial information and this announcement for the reporting period, discussing accounting policies, internal controls, and financial reporting matters. The independent auditor reviewed the interim financial information in accordance with HKSRS 2410 - The Company's Audit Committee reviewed the Group's unaudited interim condensed consolidated financial information and this announcement for the reporting period, and discussed matters related to the accounting policies and practices adopted by the Company, as well as internal controls and financial reporting matters[48](index=48&type=chunk) - The Company's independent auditor reviewed the Group's unaudited interim financial information for the reporting period in accordance with Hong Kong Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity," issued by the Hong Kong Institute of Certified Public Accountants[48](index=48&type=chunk) [Additional Information on Qualified Conclusion](index=34&type=section&id=Additional%20Information%20on%20Qualified%20Conclusion) Auditors issued a qualified opinion on the write-off of three overdue loans and interest-bearing note investments in the 2022 annual report, and a qualified conclusion on the H1 2023 interim financial statements, primarily due to comparability issues. Management and the Audit Committee acknowledge these limitations and are collaborating with auditors, expecting a full removal of the audit opinion when consolidated financial statements for FY2024 and subsequent years no longer include relevant balances or disclosures - The auditor's qualified opinion on the Company's 2022 consolidated financial statements related to the write-off of three overdue loans (**RMB 118 million**) and an interest-bearing note investment (**HKD 80 million** / approximately **RMB 66.4 million**)[50](index=50&type=chunk)[128](index=128&type=chunk) - The auditor issued a qualified review conclusion on the Company's unaudited interim condensed consolidated financial statements for the six months ended June 30, 2023, due to the potential impact of the aforementioned matters on the comparability of the interim condensed consolidated statement of comprehensive income and statement of changes in equity[21](index=21&type=chunk)[24](index=24&type=chunk) - Management and the Audit Committee acknowledge the auditor's scope limitations in determining the nature of the loan transactions and note investments, and the scope limitations on the comparability of the current period's figures with the 2022 period's figures in the relevant prior year's consolidated financial statements[26](index=26&type=chunk)[60](index=60&type=chunk) - The auditor expects that, barring unforeseen circumstances, the audit opinion will be thoroughly removed for the financial year ending December 31, 2024, and subsequent years when the consolidated financial statements no longer contain any balances or disclosures related to the prior year's audit opinion[24](index=24&type=chunk)[57](index=57&type=chunk) - The Company has a clear roadmap to remove the prior year's audit opinion and review opinion, and the Board and management will continue to work closely with the auditor[58](index=58&type=chunk) [Independent Auditor's Review Report Summary](index=37&type=section&id=Independent%20Auditor%27s%20Review%20Report%20Summary) The independent auditor reviewed the interim financial information under HKSRS 2410, but due to the nature of loan transactions and note investments, and their unauthorized nature, the scope of work was limited, preventing determination of whether related write-offs were free from material misstatement, thus issuing a qualified conclusion on the interim condensed consolidated financial statements [Review Scope](index=37&type=section&id=Review%20Scope) The auditor conducted a review in accordance with HKSRS 2410 issued by the HKICPA, with a scope significantly narrower than an audit, thus no audit opinion is expressed - The auditor conducted a review in accordance with Hong Kong Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity," issued by the Hong Kong Institute of Certified Public Accountants[132](index=132&type=chunk) - A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing, and consequently, the auditor does not express an audit opinion[132](index=132&type=chunk) [Basis for Qualified Conclusion](index=37&type=section&id=Basis%20for%20Qualified%20Conclusion) The basis for the qualified conclusion is that the former chairman unauthorizedly entered into loan transactions and note investments, totaling RMB 118 million and HKD 80 million (approx. RMB 66.4 million), outside the Group's ordinary course of business and without Board approval, lacking background checks and due diligence. These amounts remain unpaid, preventing the auditor from determining the appropriateness of related write-offs and impacting financial statement comparability - The basis for the qualified conclusion is that the former chairman of the Company unauthorizedly entered into three loan agreements (**RMB 118 million**) and a loan note agreement (**HKD 80 million** / approximately **RMB 66.4 million**) without Board approval[154](index=154&type=chunk)[152](index=152&type=chunk)[157](index=157&type=chunk) - These transactions were outside the Group's ordinary course of business, and no background checks or due diligence were performed on the borrowers and Company D before entering into them[161](index=161&type=chunk)[134](index=134&type=chunk) - The former chairman instructed the transfer of funds, originally planned for dividend payments to shareholders, to the borrowers and Company D, without prior Board approval[161](index=161&type=chunk) - As of the reporting date, none of the borrowers had repaid any amounts, and the outstanding balance from Company D remained unpaid[130](index=130&type=chunk) - Due to limited scope, the auditor was unable to determine the nature of the loan transactions and note investments, could not ascertain whether the related write-offs were free from material misstatement, and did not receive satisfactory explanations from the Board regarding the commercial substance and business rationale of the transactions[135](index=135&type=chunk)[158](index=158&type=chunk)[162](index=162&type=chunk) [Qualified Conclusion](index=39&type=section&id=Qualified%20Conclusion) Given the potential impact of the aforementioned matters on the comparability of current figures with corresponding figures in the interim condensed consolidated statement of comprehensive income for the six months ended June 30, 2022, the auditor issued a qualified conclusion on the Company's interim condensed consolidated financial statements for the six months ended June 30, 2023 - Due to the potential impact of the aforementioned matters on the comparability of the current figures with the corresponding figures in the interim condensed consolidated statement of comprehensive income for the six months ended June 30, 2022, the auditor issued a qualified conclusion on the Company's interim condensed consolidated financial statements for the six months ended June 30, 2023[163](index=163&type=chunk) [Other Information](index=40&type=section&id=Other%20Information) This section includes the interim dividend decision, publication information for the results announcement and interim report, and the updated composition of the Board of Directors [Interim Dividend](index=40&type=section&id=Interim%20Dividend) The Board did not recommend an interim dividend for the year ending December 31, 2023 - The Board did not recommend an interim dividend for the year ending December 31, 2023 (2022: Nil)[160](index=160&type=chunk)[297](index=297&type=chunk) [Publication of Announcement](index=40&type=section&id=Publication%20of%20Announcement) This results announcement has been published on the HKEX website and the Company's website. The Company's interim report for the six months ended June 30, 2023, will be dispatched to shareholders and published on the aforementioned websites in late September 2023 - This results announcement is published on the HKEX website (www.hkexnews.hk) and the Company's website (www.cgiihldgs.com)[165](index=165&type=chunk) - The Company's interim report for the six months ended June 30, 2023, will be dispatched to shareholders and published on the aforementioned websites in late September 2023[165](index=165&type=chunk) [Board of Directors](index=40&type=section&id=Board%20of%20Directors) As of this announcement date, the Board of Directors comprises Executive Directors Mr. Yao Li (Chairman) and Ms. Gao Guimin; Non-executive Directors Mr. Li Rui, Ms. Wu Shuming, and Mr. Zhang Wenli; and Independent Non-executive Directors Mr. Xiao Zhixiong, Mr. Xiao Huanwei, and Ms. Li Jun - As of the date of this announcement, the Board of Directors comprises Executive Directors Mr. Yao Li (Chairman) and Ms. Gao Guimin; Non-executive Directors Mr. Li Rui, Ms. Wu Shuming, and Mr. Zhang Wenli; and Independent Non-executive Directors Mr. Xiao Zhixiong, Mr. Xiao Huanwei, and Ms. Li Jun[131](index=131&type=chunk)

Financial Performance - The total revenue of the Group for 2022 was approximately RMB 1,481.64 million, representing an increase of 22.5% compared to RMB 1,209.27 million in 2021[10]. - The gross profit for 2022 amounted to approximately RMB 341.85 million, a 37.8% increase from RMB 248.14 million in 2021, driven by enhanced facilities efficiency and reduced unit power consumption[10]. - The profit attributable to owners of the Company for 2022 was approximately RMB 112.74 million, a turnaround from a loss of approximately RMB 26.82 million in 2021[10]. - Profit before income tax for 2022 was RMB 161,018,000, a significant increase from RMB 14,118,000 in 2021[54]. - Other income decreased by approximately 91.0% to approximately RMB0.97 million in 2022, primarily due to lower government grants received compared to the previous year[44]. - The Group's total assets as of December 31, 2022, amounted to RMB 2,606,676,000, up from RMB 2,406,049,000 in 2021, indicating a growth of 8.3%[54]. - The Group's total liabilities increased to RMB 1,220,843,000 in 2022 from RMB 1,124,019,000 in 2021, reflecting a rise of 8.6%[54]. - The Group recorded total current assets of approximately RMB990.79 million as at 31 December 2022, representing an increase of approximately 22.27% compared to RMB810.32 million as at 31 December 2021[92]. - The total current liabilities of the Group as at 31 December 2022 were approximately RMB860.49 million, an increase of approximately 9.2% from RMB787.83 million as at 31 December 2021[92]. - The Group's current ratio was approximately 1.15 as at 31 December 2022, compared to approximately 1.03 as at 31 December 2021[92]. - The net finance costs of the Group decreased by approximately 7.2% to approximately RMB26.02 million for the Reporting Period, down from approximately RMB28.05 million in 2021[91]. - The income tax expense increased by approximately 17.9% to approximately RMB48.28 million for the Reporting Period, compared to approximately RMB40.93 million in 2021[91]. - The Group had total cash and bank balances of approximately RMB360.74 million as at 31 December 2022, an increase from approximately RMB297.55 million as at 31 December 2021[91]. - As at 31 December 2022, the Group's gearing ratio was approximately 42%, down from 48% as at 31 December 2021[91]. Business Development and Strategy - The Group's new facility in Tangshan has significantly improved production capacity and technology, contributing to profit growth[8]. - The successful development and market introduction of rare gas products (poor krypton-xenon) have filled market gaps in aerospace and high-end electronics, enhancing core competitiveness[8]. - The Group plans to deepen cooperation with HBIS Group Co., Ltd. to enhance market competitiveness and develop high value-added products[12]. - The strategic focus will be on accelerating market expansion and technological innovation to drive high-quality development across China[25]. - The Group's efforts in independent innovation and intellectual property management are aimed at supporting sustainable growth[24]. - The Group's business development is expected to grow steadily, supported by strong customer demand as production capacities expand[41]. - The Group plans to actively develop special gas products and expand its market share in electronic special gas products to enhance future growth prospects[63]. - The company is focused on enhancing its market cultivation and establishing a positive competition system to boost business development[176]. - The company has plans for market expansion and new product development, particularly in the industrial gas sector[176]. Research and Innovation - The Group has established eight new science and technology topics and applied for eight utility model patents and one invention patent in 2022[24]. - The Group has initiated 8 new technology projects in 2022 and received a third-class award for technological progress[50]. - The company is actively involved in the development of new technologies and products to maintain its competitive edge in the market[176]. Human Resources - The Group employed a total of 341 employees as of December 31, 2022, down from 369 employees as of December 31, 2021, with total staff costs of approximately RMB58.38 million for the year ended December 31, 2022, compared to approximately RMB54.04 million for the previous year[1]. - The Group plans to continue attracting and retaining highly skilled personnel and invest in employee training and professional development programs[1]. - The company continues to focus on training and technology sharing to enhance its operational capabilities[187]. Audit and Compliance - The audit committee confirmed that the audited consolidated financial statements for the year ended December 31, 2022, were prepared in accordance with applicable accounting standards[4]. - The Auditor issued a qualified opinion on the Group's consolidated financial statements for the year ended December 31, 2022, due to three overdue receivables totaling RMB117 million from loan agreements[4]. - The management is working closely with the Auditor to remove the audit qualification in future financial statements[4]. - The management acknowledged the audit qualifications and is considering writing off the outstanding balances of the Loans and the Note Investment for financial reporting purposes[4]. - The Group had no significant contingent liabilities as of December 31, 2022[1]. IPO Proceeds and Investments - The Company has utilized RMB246,950,000 of the IPO Proceeds, representing approximately 83.0% of the total[122]. - The unutilized IPO Proceeds amount to RMB50,553,000, which is approximately 17.0% of the total[122]. - The expected timeline for the use of unutilized IPO Proceeds has been extended to June 30, 2024[120]. - The Company plans to gradually utilize the IPO Proceeds according to the updated expected timeline disclosed in the prospectus[124]. - The first phase of the project includes payments for the procurement and installation of air separation units (ASUs) totaling RMB64,990,000 and RMB101,790,000 for the second ASU[124]. - The third ASU involves relocation and installation costs of RMB80,170,000[124]. - The fourth ASU procurement and installation is budgeted at RMB50,553,000, which is planned for use by June 30, 2024[124]. - The Company’s business remained generally stable in 2022 despite limited impacts from COVID-19 on major customers[121]. - The Board believes that the extension of the expected timeline for using the unutilized IPO Proceeds will not adversely affect the Company's operations[127]. - The Auditor's preliminary view indicates that the Comparative Figures Qualification is expected to be removed in the consolidated financial statements for the year ending December 31, 2024[138]. Leadership and Management - The company has a strong leadership team with extensive experience in the industrial gas industry, including Mr. Yao and Ms. Gao, who have held significant roles in operational management[182][184]. - Ms. Gao has over 27 years of experience in the industrial gas industry, having held various managerial positions within the company since joining in March 2007[184]. - Mr. Zhang Wenli appointed as non-executive Director on January 20, 2023, with over 30 years of accounting experience in the industrial sector[191]. - Mr. Lai Yui has more than 24 years of experience in investment banking and private equity, previously serving as a director of investment at Temasek Holdings[193]. - Ms. Ng Shuk Ming has over 14 years of experience in the private equity industry, responsible for executing and monitoring high-value investments[195]. - Mr. Siu Chi Hung has 25 years of accounting experience, previously a partner at KPMG and head of real estate and capital markets development in Southern China[196]. - The company has a strong board with diverse expertise in finance, investment, and management, enhancing strategic decision-making capabilities[198]. - Mr. Xiao has been the chairman of Secret Garden (Zhangjiakou) Resort since February 2014, overseeing comprehensive operation management and administration[199]. - Ms. Li has over 11 years of experience in global financial institutions, including roles at Deutsche Bank AG and Sun Hung Kai & Co. Limited[199]. - Ms. Li has been a member of the Listing Committee of the Stock Exchange since July 2019[200]. - Ms. Li was qualified as a certified public accountant in the State of New York in January 2002[200].