Financial Performance - For the year ended December 31, 2022, the group's revenue was approximately RMB 2,122.3 million, an increase of about RMB 341.2 million or approximately 19.2% compared to the same period in 2021[1]. - The group's gross profit for the year was approximately RMB 568.5 million, an increase of about RMB 28.2 million or approximately 5.2% compared to the previous year[1]. - The group's net profit for the year was approximately RMB 254.2 million, an increase of about RMB 27.0 million or approximately 11.9% compared to the previous year[1]. - Basic and diluted earnings per share attributable to ordinary equity holders of the parent were approximately RMB 0.24, an increase of about RMB 0.02 or approximately 9.1% compared to the previous year[1]. - The group reported a total comprehensive income of RMB 272.7 million for the year, compared to RMB 235.3 million in the previous year[9]. - The company's overall revenue increased by approximately 19.2% to about RMB 2,122.3 million in 2022, compared to RMB 1,781.1 million in 2021[73]. - The net profit for 2022 was approximately RMB 254.2 million, an increase of about RMB 27.0 million or 11.9% from 2021[99]. - The gross margin for 2022 was approximately 26.8%, down from 30.3% in 2021, primarily due to the decline in average selling prices of dye intermediates[98]. Dividends and Shareholder Returns - The board proposed a final dividend of RMB 0.059 per share, subject to approval at the annual general meeting, bringing the total dividend for the year to RMB 0.095 per share if approved[1]. - The company proposed a final dividend of RMB 0.059 per share, subject to approval at the annual general meeting, with a total proposed dividend amounting to approximately RMB 59.9 million[140]. Assets and Liabilities - The total assets less current liabilities amounted to RMB 2,160.8 million, compared to RMB 1,931.4 million in the previous year[12]. - The total equity attributable to ordinary equity holders of the parent was RMB 2,037.5 million, an increase from RMB 1,875.5 million in the previous year[15]. - Current assets totaled RMB 1,187.9 million, compared to RMB 912.5 million in the previous year, indicating a significant increase in liquidity[12]. - As of December 31, 2022, the total current liabilities were approximately RMB 1,034.5 million, up from RMB 637.1 million in 2021, with trade payables increasing to RMB 384.1 million from RMB 195.7 million[121]. - The company had unused bank financing of RMB 110,653,000 as of December 31, 2022, up from RMB 59,263,000 in 2021[39]. - The company’s debt-to-equity ratio was approximately 14.3%, down from 16.7% in 2021, primarily due to a reduction in interest-bearing bank and other borrowings and an increase in total equity[131]. Cash Flow and Investments - The net cash generated from operating activities rose significantly to RMB 494,027 thousand in 2022 compared to RMB 296,060 thousand in 2021, marking a growth of about 66.8%[20]. - Cash outflow from investing activities was approximately RMB 285.2 million in 2022, an increase of about RMB 207.4 million from RMB 77.8 million in 2021, mainly due to capital expenditures for a new 50,000 tons/year lithium iron phosphate production line[116]. - The company experienced a net cash outflow from investing activities of RMB 285,236 thousand in 2022, compared to RMB 77,767 thousand in 2021, highlighting a significant increase in investment expenditures[22]. Segment Performance - The battery materials segment's revenue surged by approximately 297.4% to about RMB 689.5 million, accounting for approximately 32.5% of total revenue[74]. - The dye intermediates segment's revenue decreased by approximately 51.4% to about RMB 383.4 million, representing about 18.1% of total revenue[76]. - The sales revenue of the agricultural chemicals intermediate products increased by approximately 48.7% to about RMB 688.8 million, accounting for about 32.4% of the group's total revenue[90]. - The gross profit for the battery materials segment increased by about 2,311.5% to approximately RMB 250.8 million, with a gross margin of about 36.4%[61]. - The overall gross profit of the agricultural chemicals intermediate products decreased by about 49.5% to approximately RMB 204.8 million, with a gross margin decline of 13.3 percentage points to about 19.1%[90]. Operational Efficiency - The company reported a gross profit margin of 30.3% for the year, with the top five customers contributing approximately 38.6% of total revenue, up from 33.8% in 2021[58]. - Inventory turnover days remained stable at 62 days in 2022, compared to 64 days in 2021[132]. - Trade receivables and notes receivable turnover days increased from 52 days in 2021 to 81 days in 2022, attributed to a significant increase in sales revenue in the battery materials segment, which primarily settled payments through bank acceptance bills[133]. Research and Development - The company emphasizes continuous investment in R&D to maintain market competitiveness and explore new growth opportunities[82]. - The group plans to continue increasing R&D investment to develop new products and technologies, focusing on new energy and new materials as future development directions[87]. Corporate Governance and Structure - The company maintained a high level of corporate governance to protect shareholder interests and enhance corporate value[143]. - The board of directors consists of experienced members, with the chairman and CEO being the same person to ensure consistent leadership and effective execution of business strategies[162]. Market Position and Strategy - The company has changed its English name from "Tsaker Chemical Group Limited" to "Tsaker New Energy Tech Co., Limited" to better reflect its future development direction[170]. - The battery materials segment has become the highest profit-contributing core business segment, with new projects in lithium iron phosphate and resource recycling expected to further increase its share in overall business[170]. - Revenue distribution by region shows that mainland China accounted for approximately 81.1% of total revenue, while India contributed about 6.0%[173].

TSAKER NEW ENERGY TECH CO., LIMITED 彩客新能源科技有限公司 (Incorporated in the Cayman Islands with limited liability)（於開曼群島註冊成立的有限公司） Stock Code 股份代號：1986 INTERIM REPORT 2022 中期報告 | --- | --- | |-------|-----------------------------------------------------------------------------------------------------------------------------------------------| | | | | | Contents | | | 目錄 | | 2 | Corporate Information 公司資料 | | 5 | Financial Highlights 財務摘要 | | 6 | Management Discussion and Analysis 管理層討論及分析 | | 23 | Corporate Govern ...

Financial Performance - For the year ended December 31, 2021, the Group's revenue amounted to approximately RMB 1,781.1 million, representing an increase of approximately RMB 505.8 million or 39.7% compared to the same period in 2020[14]. - The Group's gross profit for the year ended December 31, 2021, was approximately RMB 540.3 million, reflecting an increase of approximately RMB 95.0 million or 21.3% compared to the previous year[16]. - The net profit for the Group for the year ended December 31, 2021, was approximately RMB 227.2 million, which is an increase of approximately RMB 82.6 million or 57.1% compared to 2020[17]. - Profit attributable to owners of the parent for the year was RMB 226.2 million, up from RMB 144.9 million in 2020[14]. - Earnings per share attributable to ordinary equity holders of the parent increased to RMB 0.22 for the year ended December 31, 2021, compared to RMB 0.14 in 2020[14]. - The Group's financial highlights indicate a strong performance with significant growth in both revenue and profit metrics[13]. - Total revenue increased by approximately 39.7% to approximately RMB1,781.1 million in 2021, compared to approximately RMB1,275.3 million in 2020[79]. - Gross profit increased by approximately 21.3% to approximately RMB540.3 million, with a gross profit margin decreasing to approximately 30.3% from approximately 34.9% in 2020[79]. - The Group's net profit margin improved to approximately 12.8% in 2021 from 11.3% in 2020[132]. Revenue Breakdown - Revenue from dye intermediates increased by approximately 33.7% to approximately RMB789.3 million, accounting for approximately 44.3% of total revenue[82]. - Revenue from agricultural chemical intermediates increased by approximately 11.6% to approximately RMB463.1 million, representing approximately 26.0% of total revenue[82]. - Revenue from pigment intermediates increased by approximately 39.2% to approximately RMB353.6 million, maintaining a share of approximately 19.9% of total revenue[87]. - Revenue from battery materials surged by approximately 2,015.9% to approximately RMB173.5 million, accounting for approximately 9.7% of total revenue[89]. - Revenue from Mainland China accounted for approximately 67.9% of total revenue, with India at 9.0% and Indonesia at 5.3%[76][77]. - Export revenue amounted to approximately RMB571.3 million, representing an increase of approximately 39.7% compared to RMB408.9 million in 2020[97]. - Export revenue accounted for approximately 32.1% of total revenue in 2021, consistent with 2020[104]. Operational Efficiency - The gross profit margin for 2021 was 30.3%, down from 34.9% in 2020, indicating a shift in profitability dynamics[22]. - The inventory turnover days improved to 64 days in 2021 from 98 days in 2020, indicating more efficient inventory management[22]. - The turnover days for trade receivables decreased from 71 days in 2020 to 52 days in 2021, reflecting a return to normal payment schedules post-COVID-19[169]. - The total amount of trade payables decreased from RMB 178.9 million in 2020 to RMB 195.7 million in 2021, with turnover days dropping from 100 days to 54 days[173][179]. Strategic Initiatives - The management discussion and analysis section will provide further insights into operational strategies and market conditions affecting performance[12]. - Future outlook and guidance will be discussed in the upcoming sections, focusing on market expansion and new product development[12]. - The company is actively pursuing new technologies and product innovations to enhance its competitive position in the market[12]. - Strategic initiatives, including potential mergers and acquisitions, are being evaluated to drive growth and market share[12]. - The Group plans to focus on key fixed asset investment projects, including the iron phosphate expansion project and the new BPDA capacity project in 2022[50][51]. - The Group aims to expand into new energy and new materials sectors, which are expected to become a significant part of its overall business[124]. Research and Development - In 2021, the Group completed small and pilot scale R&D of the BPDA product, entering the high-performance macromolecular compounds market[44][45]. - The Group continues to focus on research and development to enhance product quality and competitiveness in the market[99]. - The Group will continue to invest in research and development to maintain competitive advantages and explore new business growth points[109]. Financial Health - Current assets increased to RMB912,494 in 2021 from RMB647,532 in 2020, indicating improved liquidity[22]. - The Group maintained a current ratio of 1.43 in 2021, up from 1.08 in 2020, suggesting better short-term financial health[22]. - The Group's gearing ratio improved to approximately 16.7% as of December 31, 2021, down from 20.8% in 2020, due to a reduction in borrowings and an increase in total equity[157][160]. - As of December 31, 2021, the Group had cash and cash equivalents of approximately RMB180.1 million, an increase from approximately RMB101.2 million in 2020[153]. - The Group's total current assets increased to approximately RMB912.5 million in 2021 from RMB647.5 million in 2020, primarily driven by higher inventories and trade receivables[163][164]. Employee and Administrative Costs - The total staff costs for the Group during the review year were approximately RMB1,434 million, an increase from approximately RMB1,160 million in 2020[198]. - The Group had 1,581 employees as of December 31, 2021, compared to 1,526 employees in 2020[197]. - Selling and distribution expenses increased to approximately RMB58.2 million in 2021, up approximately RMB16.6 million from RMB41.6 million in 2020[133]. - Administrative expenses amounted to approximately RMB143.8 million in 2021, a decrease of approximately RMB34.4 million compared to RMB178.2 million in 2020, primarily due to a reduction in the suspension period from the COVID-19 pandemic[139]. Environmental and Sustainability Efforts - The Group successfully upgraded its iron phosphate production line in 2021, leading to a reduction in production costs[42][43]. - The Group achieved zero discharge of solid waste from the production process of co-production of iron oxide red products in 2021[42][43]. - The Group completed the upgrade of its DSD Acid production line, achieving zero solid waste emissions and introducing iron oxide red as a new product[121]. - The production process of DSD Acid was transformed to achieve zero discharge of solid waste, converting scrap iron sludge into iron oxide red, which has a production capacity of 30,000 tons/year[119]. Capital Market Activities - The Group is considering a spin-off of Tsaker Technology for separate quotation on the NEEQ to enhance visibility and broaden financing channels[46][47]. - The Group plans to spin off Tsaker Technology for separate quotation on the NEEQ to enhance financing ability and visibility in the capital market[120]. - The net proceeds from the Group's listing amounted to approximately RMB 3,788 million, used for purposes disclosed in the Prospectus[200].

TSAKER CHEMICAL GROUP LIMITED INTERIM REPORT 2021 中期報告INTERIM REPORT 2021 中期報告 * For identification purpose only 僅供識別 Contents 目錄 2 Corporate Information 公司資料 5 Financial Highlights 財務摘要 6 Management Discussion and Analysis 管理層討論及分析 23 Corporate Governance 企業管治 31 Report on Review of Interim Financial Information 中期財務資料審閱報告 33 Unaudited Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income 未經審核中期簡明綜合損益及其他全面收益表 35 Unaudited Interim Condensed Consolidated Statement of Finan ...

Financial Performance - For the year ended December 31, 2020, the Group's revenue amounted to approximately RMB 1,275.3 million, representing a decrease of approximately RMB 543.0 million or 29.9% compared to the same period in 2019[14]. - The Group's gross profit for the year ended December 31, 2020, was approximately RMB 445.3 million, reflecting a decrease of approximately RMB 595.7 million or 57.2% compared to 2019[16]. - The net profit for the year ended December 31, 2020, was approximately RMB 144.6 million, a decrease of approximately RMB 373.7 million or 72.1% compared to the same period in 2019[17]. - Basic and diluted earnings per share attributable to ordinary equity owners of the parent for the year ended December 31, 2020, was approximately RMB 0.14, representing a decrease of approximately RMB 0.36 or 72.0% compared to 2019[18]. - Total revenue for 2020 was RMB1,275.3 million, a decrease of approximately 29.9% from RMB1,818.3 million in 2019[22]. - Gross profit for 2020 was RMB445.3 million, down approximately 57.3% from RMB1,041.0 million in 2019, resulting in a gross profit margin of 34.9%[22]. - Profit for the year was RMB144.6 million, a decline of approximately 72.1% compared to RMB518.3 million in 2019[22]. Market Challenges and Strategic Initiatives - The significant decline in revenue and profit is attributed to market challenges faced during the year, impacting overall performance[15]. - The Group is focusing on strategic initiatives to enhance operational efficiency and explore new market opportunities moving forward[14]. - Future outlook includes potential investments in new technologies and product development to regain market share[14]. - The management is committed to improving financial performance and restoring profitability in the upcoming fiscal periods[14]. - The Group plans to expand its market presence through strategic partnerships and collaborations[14]. - The Group is actively seeking potential acquisition and merger projects to enhance its market position and create synergy with existing businesses[67]. Segment Performance - The dye and agricultural chemical intermediates segment contributed approximately RMB1,005.4 million in revenue, representing a decrease of approximately 33.4% year-over-year[35]. - Revenue from pigment intermediates accounted for 19.9% of total revenue, contributing approximately RMB254.1 million, with a gross profit margin increase of approximately 6.2 percentage points to approximately 43.9%[36]. - Revenue from dye intermediates decreased by approximately 50.2% to approximately RMB590.4 million in 2020, representing approximately 46.3% of total revenue[87]. - Revenue from agricultural chemical intermediates increased by approximately 28.0% to approximately RMB415.0 million in 2020, accounting for approximately 32.5% of total revenue[87]. Research and Development - Ongoing efforts in research and development are expected to drive innovation and product offerings in the chemical sector[14]. - R&D investment increased by approximately 37.3% in 2020, reaching approximately RMB25.9 million[114]. - The Group emphasizes continuous research and development, upgrading existing technologies and developing new environmentally friendly production technologies[43]. Financial Position and Liquidity - Non-current assets totaled RMB1,695.6 million, a slight decrease from RMB1,725.0 million in 2019[22]. - Current liabilities decreased to RMB597.6 million from RMB745.9 million in 2019, indicating improved liquidity[22]. - The net debt to equity ratio increased to 20.8% from 17.8% in 2019, reflecting a higher reliance on debt financing[22]. - The Group maintained a healthy liquidity position, with daily working capital primarily derived from internally generated cash flow and bank borrowings[160]. - As of December 31, 2020, the Group's cash and cash equivalents totaled approximately RMB101.2 million, compared to RMB104.8 million in 2019[154]. Employee and Operational Management - The total staff costs of the Group amounted to approximately RMB 116.0 million in 2020, down from approximately RMB 164.4 million in 2019[197]. - As of December 31, 2020, the Group had 1,526 employees, a slight decrease from 1,553 employees in 2019[196]. - The company has established a human resources policy and system to effectively manage employees, including a reasonable incentive reward system and various training programs[200]. - Employee compensation is determined based on their roles and current market trends, and includes bonuses, training programs, pensions, medical insurance, and provident funds[200]. Dividend and Shareholder Returns - The Board did not recommend a final dividend for the year ended December 31, 2020, with an interim dividend of RMB0.048 per share for the six months ended June 30, 2020, compared to RMB0.150 per share for the entire year of 2019[19]. Foreign Exchange and Risk Management - The company is exposed to foreign exchange risk due to fluctuations in exchange rates, particularly as its export business expands[198]. - Currently, the company does not have a foreign currency hedging policy in place, but the board monitors related risks and may consider hedging significant foreign currency risks if necessary[199].

Company Overview - Tsaker Chemical Group Limited is a leading producer of fine chemicals, including dye and agricultural chemical intermediates, and has expanded into battery materials and environmental technology consultancy since 2017[6]. - The production facilities are primarily located in Dongguang, Hebei Province, and Dongying, Shandong Province, China[14]. - The Group has diversified its product offerings in the new energy sector to include carbon nanotube paste and other battery material products, receiving positive customer feedback during the review period[11]. Production and Product Development - The company has a production capacity of 15,000 tonnes for iron phosphate, a precursor for lithium battery cathode materials, established in Cangzhou, Hebei Province[11]. - The Group's agricultural chemical intermediates include ONT and OT, with PNT being a major raw material for producing DSD Acid, which is essential for herbicide production[7]. - The production of mononitrotoluene has secured upstream raw material supplies for DSD Acid, stabilizing production costs and expanding the product portfolio[7]. - The pigment intermediates produced by the Group, such as DMSS, DMAS, and DIPS, are crucial for high-grade pigments used in printing inks, food additives, and high-grade paints[8]. - The Group has adopted the latest production techniques for iron phosphate products, enhancing supply to downstream customers[11]. - The company aims to further expand its downstream industry chain by producing OBA for textile printing, dyeing, and detergents[7]. Financial Performance - The Group's revenue for the six months ended June 30, 2020, was approximately RMB735.5 million, representing a decrease of approximately RMB339.8 million or 31.6% compared to the same period in 2019[25]. - Gross profit for the same period was approximately RMB307.0 million, a decrease of approximately RMB363.5 million or 54.2% year-on-year[27]. - Net profit attributable to equity holders of the Company decreased by approximately 65.8% to approximately RMB139.0 million compared to RMB406.7 million in the first half of 2019[38]. - Basic and diluted earnings per share for the period were approximately RMB0.13, representing a decrease of approximately RMB0.26 or 66.7% compared to the same period in 2019[29]. - The overall gross profit margin decreased by 20.7 percentage points to approximately 41.7% compared to 62.4% in the first half of 2019[37]. - Dye and agricultural chemical intermediates accounted for approximately 81.9% of total revenue, down from 84.1% in the first half of 2019[39]. - The Group's overall revenue decreased by approximately 31.6% to approximately RMB 735.5 million compared to RMB 1,075.3 million in the first half of 2019[41]. - The overall gross profit declined by approximately 54.2% to approximately RMB 307.0 million, with a gross profit margin decrease of 20.7 percentage points to approximately 41.7%[41]. Segment Performance - Revenue from dye intermediate products decreased by approximately 52.2% to approximately RMB 380.4 million compared to the same period in 2019[45]. - Revenue from agricultural chemical intermediates increased by approximately 103.0% to approximately RMB 221.7 million compared to the same period in 2019[47]. - The total revenue of the segment for dye intermediates decreased by approximately 33.4% to approximately RMB 602.1 million, accounting for approximately 81.9% of the Group's overall revenue[49]. - The gross profit of dye intermediates decreased by approximately 65.8% to approximately RMB 205.9 million, while the gross profit margin decreased by 21.6 percentage points to approximately 54.1%[50]. - The revenue from pigment intermediates decreased by approximately 17.8% to approximately RMB 125.6 million, accounting for approximately 17.1% of the Group's overall revenue[55]. - The environmental protection business recorded a revenue of approximately RMB 2.6 million, with a gross profit margin increase of 17.6 percentage points to approximately 48.2%[61]. - The battery materials segment recorded a revenue of approximately RMB 5.3 million, with an impairment provision of approximately RMB 8.45 million against inventories due to high unit costs[65]. Expenses and Costs - Selling and distribution expenses amounted to approximately RMB20.2 million, representing approximately 2.7% of the Group's revenue, compared to 2.0% in the same period of 2019[83]. - Administrative expenses increased to approximately RMB84.8 million, an increase of approximately RMB9.7 million from RMB75.1 million in the same period of 2019, primarily due to extended suspension periods caused by the COVID-19 pandemic[86]. - Finance costs amounted to approximately RMB13.6 million, a decrease of approximately RMB4.8 million compared to approximately RMB18.4 million for the same period in 2019[89]. - The net exchange losses amounted to approximately RMB10.4 million, compared to approximately RMB1.5 million for the same period in 2019, mainly due to fluctuations in the exchange rate of Renminbi against the US dollar[92]. - Income tax expenses were approximately RMB39.9 million, a decrease of approximately RMB106.2 million from approximately RMB146.1 million for the same period in 2019, primarily due to a decrease in profit before tax[95]. Cash Flow and Liquidity - The Group's net cash inflows from operating activities were approximately RMB154.6 million, a decrease of approximately RMB215.3 million compared to approximately RMB369.9 million for the same period in 2019[95]. - The Group's net cash outflows from investing activities were approximately RMB49.6 million, a decrease of approximately RMB51.1 million compared to approximately RMB100.7 million for the same period in 2019[95]. - The Group's net cash outflows from financing activities were approximately RMB89.5 million, a decrease of approximately RMB244.1 million compared to approximately RMB333.6 million for the same period in 2019[95]. - As of 30 June 2020, the Group had cash and cash equivalents of approximately RMB120.0 million, an increase from approximately RMB104.8 million as of 31 December 2019[99]. - The Group had interest-bearing bank and other borrowings of approximately RMB295.0 million, with interest rates ranging from 4.61% to 13.45% per annum[99]. - The Group maintained unutilised banking facilities of RMB26.0 million and USD2.0 million as of 30 June 2020[99]. Shareholder Information - The Board declared an interim dividend of RMB0.048 per share for the six months ended June 30, 2020, compared to nil for the same period in 2019[30]. - The Company reported an interim dividend of RMB0.048 per share for the six months ended 30 June 2020[145]. - The interim dividend will be paid in Hong Kong dollars at an exchange rate of HK$1: RMB0.894[144]. - The Company repurchased a total of 5,249,500 Shares at a total consideration of HK$6,234,095 during the half year ended June 30, 2020[194]. - The highest purchase price per Share during June 2020 was HK$1.26, while the lowest was HK$1.12[197]. - 3,200,000 repurchased Shares were cancelled on June 19, 2020, and the remaining 2,049,500 Shares were cancelled on July 20, 2020[194]. Corporate Governance - The Company has complied with all provisions of the Corporate Governance Code, except for code provision A.2.1, where the roles of chairman and CEO are held by the same individual[150]. - The Board consists of three independent non-executive Directors, ensuring a balance of powers and authorities[151]. - The Audit Committee reviewed the unaudited interim financial statements for the six months ended 30 June 2020[157]. - There were no changes in the information of Directors or chief executives during the Review Period[163]. - As of June 30, 2020, the total number of issued shares was 1,033,146,000 shares[2]. Future Outlook - The Group plans to enhance production technologies and product quality while reducing production costs, and will continue to invest in environmental protection and R&D[77]. - The Group aims to seek merger and acquisition opportunities to consolidate competitive advantages within the industry chain[77]. - The Group remains confident in its ability to navigate the crisis and create value for shareholders despite uncertainties in the global economic outlook[73]. - The Group is actively seeking acquisition targets and conducting negotiations, despite challenges posed by the political and economic environment[138].

Company Overview - Tsaker Chemical Group Limited is a leading producer of fine chemicals, including dye and agricultural chemical intermediates, and has expanded into lithium battery materials and environmental protection consultancy since 2017[6]. - The Group's production facilities are primarily located in Dongguang, Hebei Province, and Dongying, Shandong Province, China[12]. Product Segments - The Group's main dye intermediate product, DSD Acid, is widely used in paper, textiles, detergents, and cosmetics, while its agricultural chemical intermediates ONT and OT are primarily used for herbicides[7]. - The production of mononitrotoluene has secured upstream raw material supplies for DSD Acid, stabilizing its price and expanding the product portfolio[7]. - The Group has invested in the R&D and manufacturing of iron phosphate, a precursor for new energy anode materials, and has built a 15,000-tonne production line in Cangzhou, Hebei, which has received favorable feedback from downstream customers[8]. - The battery material segment contributed approximately RMB 8.4 million, accounting for 0.5% of total sales[49]. - Revenue from pigment intermediates accounted for 14.5% of total revenue, contributing approximately RMB 263.2 million, with sales volume increasing to approximately 8,858 tonnes[48]. Financial Performance - For the year ended December 31, 2019, the Group's revenue was approximately RMB 1,818.3 million, representing an increase of approximately RMB 302.4 million or 20.0% compared to the same period in 2018[21]. - The gross profit for the year ended December 31, 2019, amounted to approximately RMB 1,041.0 million, reflecting an increase of approximately RMB 516.9 million or 98.6% compared to the previous year[23]. - The net profit for the year ended December 31, 2019, was approximately RMB 518.3 million, which is an increase of approximately RMB 295.5 million or 132.6% compared to 2018[24]. - Basic and diluted earnings per share attributable to ordinary equity holders of the parent were approximately RMB 0.50, representing an increase of approximately RMB 0.29 or 138.1% compared to the same period in 2018[25]. - The gross profit margin for 2019 was 57.3%, significantly up from 34.6% in 2018[29]. - The net profit margin for 2019 was 28.5%, compared to 14.7% in the previous year[29]. - The return on equity for 2019 was 33.6%, an increase from 18.1% in 2018[29]. Revenue Breakdown - The Group's total revenue increased by approximately 20.0% year-on-year to RMB 1,818.3 million in 2019, compared to RMB 1,515.9 million in 2018[42]. - The dye and agricultural chemical intermediates segment contributed approximately RMB 1,509.6 million, accounting for 83.0% of total revenue, with a year-on-year increase of approximately 24.5%[47]. - The revenue breakdown includes RMB 1,509,631,000 from dye and agricultural chemical intermediates, RMB 263,188,000 from pigment intermediates, RMB 37,093,000 from environmental technology consultancy services, and RMB 8,435,000 from battery materials[80]. Environmental Protection and Consultancy - Environmental protection consultancy services commenced in late 2017 and began contributing revenue in 2018, focusing on atmospheric control and wastewater and soil treatment[11]. - The Group's environmental technology consultancy business generated revenue of approximately RMB 37.1 million, with a gross profit margin of approximately 24.1%[49]. - The environmental consulting business has stabilized and started generating profits after two years of operation, becoming a stable revenue source for the Group[69]. Strategic Initiatives - The Group plans to adjust the pricing strategy of core products, particularly DSD Acid, to boost downstream demand and stabilize market share[69]. - The Group will continue to invest in environmental protection and R&D to develop new products and techniques for long-term growth[67]. - The Group is actively seeking potential acquisition and merger projects to enhance its market position and create greater value for shareholders[75]. - The Group aims to continue its expansion strategy along the industrial chain and actively seek high-quality mergers and acquisitions[128][131]. Challenges and Outlook - The operating environment in 2020 is expected to remain challenging due to the COVID-19 pandemic and fluctuating international oil prices[68]. - The Group aims to adjust pricing strategies and explore existing product markets in response to uncertainties from the COVID-19 pandemic and fluctuating crude oil prices[122]. Cash Flow and Liquidity - Net cash inflows from operating activities amounted to approximately RMB 564.9 million in 2019, representing an increase of approximately 160.5% compared to RMB 216.7 million in 2018[149]. - The Group's net cash outflows used in financing activities were approximately RMB 369.6 million in 2019, compared to a net inflow of approximately RMB 10.0 million in 2018, indicating a significant increase in cash outflows[153]. - As of December 31, 2019, the Group had cash and cash equivalents of approximately RMB 104.8 million, a decrease from RMB 124.3 million in 2018[156]. Human Resources and Management - The Group has established human resources policies to support effective management and talent development[199].

Production Capacity and Product Offerings - The Group's production capacity for iron phosphate, a raw material for lithium battery cathode materials, is 15,000 tonnes, established in 2017[7]. - The Group has expanded its product offerings in the new energy sector to include carbon nanotube paste and precursors for ternary anode materials[7]. - The Group's main product in dye intermediates is DSD Acid, which is widely used in paper, textiles, detergents, and cosmetics[4]. - Agricultural chemical intermediates include ONT and OT, with PNT being a major raw material for DSD Acid production[4]. - The Group's production of mononitrotoluene has secured upstream raw material supplies for DSD Acid, stabilizing production costs[4]. - The Group's pigment intermediates, including DMSS, DMAS, and DIPS, are essential for high-grade pigments used in printing inks and food additives[4]. - Large-scale production of iron phosphate has not yet commenced, as the Group focuses on improving production processes and reducing costs[7]. Financial Performance - The Group's revenue for the six months ended June 30, 2019, was approximately RMB1,075.3 million, representing an increase of approximately RMB320.7 million or 42.5% compared to the same period in 2018[19]. - Gross profit for the same period was approximately RMB670.5 million, reflecting an increase of approximately RMB413.8 million or 161.2% year-on-year[20]. - Net profit attributable to equity holders of the Company increased by approximately RMB285.2 million or 234.7% to approximately RMB406.7 million[30]. - Basic and diluted earnings per share for the period were approximately RMB0.39, an increase of RMB0.27 or 225% compared to the same period in 2018[21]. - The overall gross profit margin increased by 28.4 percentage points to approximately 62.4% due to rising sales prices of dye intermediates[28]. - Dye and agricultural chemical intermediates accounted for approximately 84.1% of total revenue, up from 80.7% in the first half of 2018[32]. - The Group's stable market position and rising sales prices of dye intermediates contribute to its confidence in future development[30]. - The average sales price of dye intermediates continued to rise due to changes in market supply and demand[28]. - The profit margin attributable to equity holders of the Company increased by 21.7 percentage points to approximately 37.8%[30]. - During the Review Period, the segment revenue increased by approximately 48.6% to approximately RMB904.3 million, accounting for approximately 84.1% of the Group's total revenue[34]. - The overall gross profit of the segment increased by approximately 197.1% to approximately RMB614.9 million, with a gross profit margin increase of 34.0 percentage points to approximately 68.0%[36]. - The revenue of the pigment intermediates segment increased by approximately 16.5% to approximately RMB152.8 million, accounting for approximately 14.2% of the Group's overall revenue[42]. - The export revenue amounted to approximately RMB571.3 million, representing an increase of approximately 102.7% compared to the same period in 2018, and accounted for approximately 53.1% of the total revenue[54][56]. - The environmental protection business achieved a revenue of approximately RMB13.0 million, with a gross profit margin of approximately 30.6%, down by 2.9 percentage points compared to the same period in 2018[46]. Expenses and Cash Flow - Selling and distribution expenses decreased to approximately RMB21.7 million, representing 2.0% of the Group's revenue, down from 3.2% in the same period of 2018[67]. - Administrative expenses increased to approximately RMB75.1 million, accounting for approximately 7.0% of the Group's revenue, slightly down from 7.3% in the same period of 2018[70][72]. - Finance costs rose to approximately RMB18.4 million, an increase of approximately RMB8.9 million compared to RMB9.5 million in the same period of 2018[73]. - Income tax expenses amounted to approximately RMB146.1 million, an increase of approximately RMB101.1 million from RMB45.0 million in the same period of 2018, primarily due to increased profit before tax[79]. - The Group generated net cash inflows from operating activities of approximately RMB369.9 million, an increase of approximately RMB279.3 million from RMB90.6 million in the same period of 2018[82]. - Net cash outflows used in investing activities were approximately RMB100.7 million, a decrease of approximately RMB164.3 million from RMB265.0 million in the same period of 2018[83]. - The Group's net cash outflows used in financing activities increased to approximately RMB333.6 million, up by approximately RMB301.3 million compared to RMB32.3 million in the same period of 2018, primarily due to the repayment of syndicated loans[86]. Assets and Liabilities - As of June 30, 2019, the Group had cash and cash equivalents of approximately RMB58.4 million, a decrease from approximately RMB124.3 million as of December 31, 2018[88]. - The Group's total current assets amounted to approximately RMB849.5 million as of June 30, 2019, down from approximately RMB875.1 million as of December 31, 2018[96]. - The Group's gearing ratio improved to approximately 17.8% as of June 30, 2019, compared to approximately 49.3% as of December 31, 2018, due to the repayment of syndicated loans[95]. - Interest-bearing bank and other borrowings totaled approximately RMB294.8 million, with interest rates ranging from 4.50% to 13.45% per annum[88]. - The Group's inventories increased to approximately RMB230.5 million as of June 30, 2019, from approximately RMB210.0 million as of December 31, 2018[96]. - Trade and notes receivables rose to approximately RMB334.2 million as of June 30, 2019, compared to approximately RMB254.5 million as of December 31, 2018[96]. - Restricted cash was approximately RMB21.0 million as of June 30, 2019, slightly up from approximately RMB20.2 million as of December 31, 2018[96]. - As of June 30, 2019, the Group's total current liabilities amounted to approximately RMB 807.5 million, a decrease from approximately RMB 871.5 million as of December 31, 2018[1]. - Trade and notes receivables increased by approximately RMB 79.7 million to approximately RMB 334.2 million as of June 30, 2019, primarily due to increased sales revenue[2]. - The turnover days for trade receivables improved from 69 days in 2018 to 49 days during the review period[3]. - The Group's inventories turnover days increased from 59 days in 2018 to 98 days in 2019, attributed to higher inventory levels[4]. - Other payables and accruals decreased by approximately RMB 28.7 million to approximately RMB 80.0 million as of June 30, 2019[5]. - The net carrying amounts of pledged assets increased to approximately RMB 291.6 million as of June 30, 2019, from approximately RMB 223.3 million as of December 31, 2018[6]. - The Group did not have any significant contingent liabilities as of June 30, 2019[8]. - The Group is closely monitoring foreign exchange risks related to its operating and financing activities[9]. - The Group currently does not have any hedging policy for foreign currency but will consider it if necessary[10]. Corporate Governance and Shareholding - The Group has complied with all provisions of the Corporate Governance Code, except for the separation of roles between the chairman and CEO, which are held by the same individual[6]. - The Board consists of three independent non-executive Directors, ensuring a balance of powers and authorities[6]. - The Group does not recommend any interim dividend for the six months ended June 30, 2019, consistent with the previous year[6]. - The total number of issued shares was 1,039,478,500 shares as of June 30, 2019[172]. - Director Ge Yi holds 133,337,750 shares, representing approximately 12.83% of the total shareholding[155]. - Ge Yi is also deemed to be interested in 400,013,250 shares (38.48%) due to a voting right transfer agreement[155]. - Additionally, Ge Yi has interests in 25,480,000 shares (2.45%) under a separate agreement with Success Asia Global Limited[155]. - There were no changes in the interests or short positions of Directors or chief executives that required disclosure under the relevant rules as of June 30, 2019[161]. - No arrangements were made for any Director to acquire benefits through the acquisition of shares or debentures during the review period[163]. - There were no rights granted to Directors or their immediate family members to acquire shares or debt securities during the review period[163]. - Ms. Zhang Nan was appointed as an executive Director effective January 10, 2019[149]. - Mr. Xiao Yongzheng resigned as a non-executive Director effective January 10, 2019[149]. Share Repurchase and Market Outlook - The company repurchased a total of 2,367,000 shares at a total consideration of HK$6,995,510 during the half year ended June 30, 2019[183]. - The highest purchase price per share was HK$5.62, while the lowest was HK$1.35[186]. - The company believes that the value of its shares did not reflect their intrinsic value, indicating confidence in its development prospects[184]. - The Group is actively seeking mergers and acquisitions to consolidate industry chain advantages and push forward the development of battery materials and environmental technology consultancy business[62]. - The environmental technology consultancy business is expanding with a diversified business model, contributing stable revenue[62]. - The Group remains optimistic about the future of the battery materials business as the market rallies and applications broaden[62]. - The Group aims to fully utilize the unutilized net proceeds by the end of 2021 for the purposes disclosed in the Prospectus[6]. Audit and Compliance - The unaudited interim condensed consolidated financial statements for the six months ended June 30, 2019, have been reviewed by the Audit Committee and independent auditor Ernst & Young[148]. - The interim financial information was prepared in accordance with HKAS 34, with no significant issues identified during the review[194]. - The report was conducted by Ernst & Young, confirming compliance with relevant accounting standards[195]. - The company did not purchase, sell, or redeem any of its listed securities other than the repurchased shares[186]. - There are no provisions for pre-emptive rights under the Articles of Association or the laws of the Cayman Islands[186]. - The interim report covers the financial position and performance for the six-month period ended June 30, 2019[188].

TSAKER CHEMICAL GROUP LIMITED 彩客化/興佳園ケー * (Incorporated in the Cayman Islands with Iimited Iiability) (於閲曼群島註冊成立之有限公司) Stock Code 股份代號：1986 2018 Annual Report * For identification purpose only 僅供識別 Contents 目錄 | --- | --- | --- | --- | --- | |-------|-------|-------|-------|--------------------------------------------------------------------------| | | | | | | | | | | | | | | | | | | | | | 2 | | Company Overview | | | | 4 | | 公司概覽 Corporate Information | | | | 7 | | 公司資料 Financial Highlights | | | | 8 | | 財 ...