Financial Performance - In the fiscal year 2024, the company achieved a sales volume of 2.11 million tons of machine-made paper, an increase of 4.82% compared to 2.01 million tons in the previous year[20]. - The overall revenue of the paper and paper products industry in China reached 1,456.62 billion CNY, a year-on-year increase of 3.9%[16]. - The total profit of the industry amounted to 51.97 billion CNY, reflecting a year-on-year growth of 5.2%[16]. - Total revenue for the fiscal year 2024 decreased by approximately RMB 311.9 million or 3.7% to about RMB 8,047.6 million, primarily due to a decline in paper product prices[27]. - The gross profit for fiscal year 2024 was approximately RMB 1,195.9 million, down from about RMB 1,309.9 million in fiscal year 2023, resulting in a gross margin of approximately 14.9%, a decrease of 0.8 percentage points from 15.7%[32]. - Sales costs for fiscal year 2024 were approximately RMB 6,851.7 million, a reduction of about 2.8% compared to RMB 7,049.6 million in fiscal year 2023[31]. - The company recorded a net profit attributable to shareholders of approximately RMB 279.9 million for fiscal year 2024, a decrease of about RMB 113.4 million from RMB 393.3 million in fiscal year 2023[37]. Operational Efficiency - The company reduced inventory turnover days from 41 days last year to 31 days, indicating a significant improvement in operational efficiency[20]. - The inventory turnover days improved to 31 days in the fiscal year 2024 from 41 days in the fiscal year 2023[44]. - Distribution and selling expenses for fiscal year 2024 were RMB 372.9 million, accounting for approximately 4.6% of total revenue, compared to 4.8% in fiscal year 2023[35]. Financial Condition - The financing cost as a percentage of revenue has further decreased, contributing to an overall improvement in the company's financial condition[20]. - As of December 31, 2024, the net current liabilities of the group were approximately RMB 625.1 million, down from RMB 1,004.4 million as of December 31, 2023[44]. - The cash and cash equivalents decreased by RMB 432.8 million in the fiscal year 2024, compared to an increase of RMB 727.8 million in the fiscal year 2023[45]. - The total borrowings of the group as of December 31, 2024, were RMB 3,567.6 million, a decrease of RMB 318.3 million from RMB 3,885.9 million as of December 31, 2023[49]. - The net asset liability ratio decreased from approximately 20.6% as of December 31, 2023, to about 16.4% as of December 31, 2024, primarily due to an increase in capital and reserves[46]. Environmental, Social, and Governance (ESG) Initiatives - The company has been recognized with honors such as "Waste-Free Cell Unit" and "Green Production Advocate" for its commitment to ESG principles[20]. - The company continues to focus on resource utilization efficiency and circular economy in its high-end packaging paper business[20]. - The company has established an ESG management leadership team responsible for setting strategic directions and ensuring effective risk control and internal mechanisms[99]. - The company aims to achieve carbon peak and carbon neutrality goals through low-carbon transformation and energy-saving strategies[98]. - The company has implemented advanced water treatment technologies with a daily processing capacity of 55,000 m³, achieving over 95% wastewater reuse rate[108]. - The company has committed to high-quality environmental standards and increased investments in environmental protection facilities[99]. - The company has developed a comprehensive environmental management system to monitor and ensure compliance with pollution discharge standards[107]. - The company has established emergency response plans for environmental incidents and conducts regular risk assessments[107]. - The company emphasizes the importance of resource utilization and aims to reduce waste emissions through recycling initiatives[98]. - The company has not reported any significant violations of environmental protection laws during the reporting period[106]. Employee Welfare and Training - The company emphasizes employee welfare and safety, continuously improving labor practices and training programs to enhance employee satisfaction[155]. - The total number of employees in 2024 is 4,636, with a gender distribution of 74.4% male (3,447) and 25.6% female (1,189)[162]. - Employee turnover rate for 2024 is 22.0% for males and 7.4% for females, with a total turnover of 1,365 employees[165]. - The company provides comprehensive employee benefits, including "five insurances and one fund," various paid leave, and additional allowances[158]. - The company has a safety record with zero work-related fatalities in 2024, and lost workdays due to injuries decreased to 954 from 1,917 in 2023[168]. - The employee training program focuses on enhancing skills and knowledge, with a strong emphasis on internal training and development[171]. - The company organized a total of 5,813 internal training sessions this year, with 121,337 participants, ensuring equal training opportunities for all employees[184]. - All employees, including 100% of female and male employees, received training this year, with an average of 24 training hours per employee[184]. Corporate Governance - The board consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors[66]. - The company has adhered to the corporate governance code throughout the fiscal year 2024[62]. - The board consists of 67% male and 33% female members, reflecting a commitment to diversity[80]. - The company has a workforce composition of 74.4% male and 25.6% female, indicating a reasonable gender ratio[82]. - The company provides necessary onboarding and training for newly appointed directors to understand operations and responsibilities[71]. - The remuneration committee is responsible for reviewing the compensation of directors and senior management to ensure appropriateness[76]. - The nomination committee is tasked with identifying qualified candidates for board membership while considering diversity policies[79]. - The company held five board meetings, one annual general meeting, and one special general meeting in the fiscal year 2024[70]. Supplier and Customer Relations - The company currently collaborates with 1,853 suppliers, with 99% being domestic suppliers[193]. - The supplier performance evaluation process includes assessing price levels, delivery conditions, and quality issue handling, ensuring a competitive supplier base[194]. - The company has implemented strict supplier admission and performance evaluation systems to maintain a healthy supplier ecosystem[190]. - The company received a total of 863 complaints regarding product and service quality, with a complaint rate of approximately 0.028% of sales related to product quality issues[198]. - The company has established a comprehensive customer complaint handling mechanism with 34 sales offices nationwide to ensure rapid response to customer feedback[198]. - The company has obtained ISO9001 quality management system certification and Forest Stewardship Council (FSC) certification, reflecting its commitment to product quality and sustainable forest management[196].

Financial Performance - Revenue decreased by 3.7% from approximately RMB 8,359.5 million in FY2023 to approximately RMB 8,047.6 million in FY2024[2] - Profit attributable to owners decreased by approximately RMB 113.4 million or 28.8% from RMB 393.3 million in FY2023 to RMB 279.9 million in FY2024[2] - Gross profit decreased from RMB 1,309.9 million in FY2023 to RMB 1,195.9 million in FY2024, reflecting a decline in gross margin[4] - Total comprehensive income for the year attributable to owners decreased from RMB 390.2 million in FY2023 to RMB 283.4 million in FY2024[5] - Basic and diluted earnings per share decreased from RMB 0.39 in FY2023 to RMB 0.26 in FY2024[5] - Segment profit for the year ended December 31, 2024, was RMB 1,371,523, down 9.0% from RMB 1,505,881 in 2023[25] - Total other income for 2024 was RMB 274,287, a decrease of 5.9% compared to RMB 291,439 in 2023[29] - The company recorded a net profit attributable to shareholders of approximately RMB 279.9 million for fiscal year 2024, a decrease of about RMB 113.4 million from RMB 393.3 million in fiscal year 2023[73] Dividends - The board proposed a final dividend of HKD 0.05 per share[2] - The company proposed a final dividend of HKD 0.05 per share for 2024, amounting to RMB 49,316,000, compared to no dividend in 2023[36] - The board declared a final dividend of HKD 0.05 per share for the fiscal year 2024, subject to shareholder approval at the annual general meeting[96] - The proposed final dividend will be paid on or around July 18, 2025, subject to shareholder approval[99] Assets and Liabilities - Non-current assets totaled RMB 7,553.9 million in FY2024, slightly up from RMB 7,445.2 million in FY2023[6] - Current liabilities decreased from RMB 5,714.3 million in FY2023 to RMB 5,179.5 million in FY2024[7] - The total equity attributable to owners increased from RMB 4,569.4 million in FY2023 to RMB 4,852.8 million in FY2024[7] - The net current liabilities as of December 31, 2024, were approximately RMB 625,086,000, indicating a stable financial position[17] - The current ratio improved to 0.88 times as of December 31, 2024, compared to 0.82 times as of December 31, 2023[78] - The net asset liability ratio decreased from approximately 20.6% as of December 31, 2023, to approximately 16.4% as of December 31, 2024, primarily due to an increase in capital and reserves[80] Revenue Breakdown - Revenue from paper products was RMB 7,607,588,000, while revenue from electricity and steam was RMB 440,017,000 for the year ended December 31, 2024[20] - Revenue from the Chinese market accounted for RMB 7,927,588,000, which is approximately 98.5% of total revenue, while overseas revenue was RMB 120,017,000[20] - The total revenue for the fiscal year 2024 decreased by approximately RMB 311.9 million or 3.7% to about RMB 8,047.6 million, primarily due to a decline in paper product prices[65] Cash Flow and Investments - The net cash generated from operating activities for the fiscal year 2024 was approximately RMB 680.5 million, a decrease from RMB 1,405.6 million in the fiscal year 2023[79] - The net cash used in investing activities for the fiscal year 2024 was approximately RMB 884.6 million, significantly higher than RMB 118.0 million in the fiscal year 2023[79] - The net cash used in financing activities for the fiscal year 2024 was approximately RMB 228.7 million, down from RMB 559.8 million in the fiscal year 2023[79] Costs and Expenses - The sales cost for fiscal year 2024 was approximately RMB 6,851.7 million, a decrease of about 2.8% from RMB 7,049.6 million in fiscal year 2023[68] - Distribution and selling expenses for fiscal year 2024 were recorded at RMB 372.9 million, accounting for approximately 4.6% of total revenue[71] - The financing cost for fiscal year 2024 was approximately RMB 151.4 million, representing about 1.9% of total revenue, down from 2.1% in the previous year[71] - The company’s total employee costs, including directors' remuneration, were RMB 497,418,000 in 2024, slightly lower than RMB 504,171,000 in 2023, a decrease of about 1.3%[34] Operational Highlights - The company’s main business includes the production and sale of paper products, electricity, and steam[9] - The company plans to focus on product quality improvement and cost control as key management themes for 2024[61] - The company aims to enhance resource utilization efficiency and promote recycling, aligning with ESG principles and receiving honors such as "Waste-Free Cell Unit" and "Green Production Advocate"[61] - The company has successfully implemented a series of management innovations, including material and logistics management, to enhance overall management levels[61] Regulatory and Compliance - The company plans to adopt new and revised International Financial Reporting Standards (IFRS) effective from January 1, 2024, with no significant impact on current and past performance[10] - The company’s financial statements are prepared in accordance with the International Financial Reporting Standards and comply with applicable disclosure requirements under the Hong Kong Companies Ordinance[16] Market Trends - The production price index for paper and paper products decreased by 3.8% year-on-year in 2024, while the input price index for wood and pulp fell by 2.3%[60] - The output of paper and cardboard in China reached 15,846.9 million tons in 2024, representing an 8.6% year-on-year increase[60] - The revenue of large-scale paper and paper products enterprises in China grew by 3.9% year-on-year to RMB 1,456.62 billion in 2024[60]

Sales and Revenue Performance - In the first half of 2024, the group achieved a sales volume of 1.0146 million tons of machine-made paper, an increase of 6.58% compared to 0.952 million tons in the same period last year[9]. - The overall revenue of the paper and paper products industry in China reached 699.21 billion yuan, a year-on-year increase of 6.0%, while the total profit amounted to 22.79 billion yuan, up 104.9% year-on-year[8]. - Total revenue for the first half of 2024 was RMB 3,956.6 million, a decrease of 6.0% compared to RMB 4,208.4 million in the first half of 2023[12]. - Paper product sales decreased by 6.3% to RMB 3,729.8 million, with a volume of approximately 1,014,600 tons, compared to RMB 3,981.4 million and approximately 952,000 tons in the same period last year[12]. - For the six months ended June 30, 2024, the company's revenue was RMB 3,956,623 thousand, a decrease of 5.94% compared to RMB 4,208,395 thousand for the same period in 2023[47]. - Revenue from paper products was RMB 3,729,815, while the electricity and steam segment contributed RMB 226,808[63]. Profitability and Financial Metrics - Gross profit decreased from RMB 638.3 million in the first half of 2023 to RMB 566.4 million in the first half of 2024, with a gross margin decline from 15.2% to 14.3%[15]. - The company reported a profit attributable to owners of RMB 189.4 million for the first half of 2024, slightly down from RMB 192.6 million in the first half of 2023[19]. - The net profit for the period was RMB 217,914 thousand, slightly down from RMB 223,564 thousand, representing a decrease of 2.93%[47]. - The total profit before tax for the six months ended June 30, 2024, was RMB 283,762, compared to RMB 274,216 in the same period of 2023[66]. - The total comprehensive income for the period was RMB 215,440 thousand, compared to RMB 223,370 thousand in the previous year, indicating a decline of 3.54%[48]. Cost Management and Efficiency - The group reduced the proportion of financing costs in revenue from 2.3% in the same period last year to 2.2% in the first half of 2024, indicating improved financial conditions[9]. - Sales cost for the first half of 2024 was RMB 3,390.2 million, a reduction of 5.0% from RMB 3,570.1 million in the first half of 2023[14]. - The inventory turnover rate improved from 4.5 times in the same period last year to 5.3 times in the first half of 2024, enhancing operational efficiency[9]. - Inventory turnover days improved to 34 days in the first half of 2024 from 41 days in the same period of 2023, with inventory decreasing from RMB 668.8 million to RMB 614.1 million[9]. Financing and Debt Management - The financing cost decreased by 9.4% to RMB 88.7 million in the first half of 2024, compared to RMB 98.0 million in the same period last year[17]. - Total debt, including bank and other borrowings as well as lease liabilities, was RMB 3,794.2 million, down from RMB 3,885.9 million as of December 31, 2023[9]. - The net asset liability ratio increased from 20.6% as of December 31, 2023, to 23.3% as of June 30, 2024[9]. - The company raised new loans totaling RMB 1,745,921,000 during the six months ended June 30, 2024, with an interest rate range of 1.60% to 4.75%[89]. Shareholder and Governance Information - The company has issued a total of 1,065,144,359 ordinary shares[38]. - China Sunrise holds 321,687,052 shares, representing a 30.20% stake in the company[40]. - The controlling shareholder group has a combined interest of 321,687,052 shares, also accounting for 30.20% of the company[40]. - The company is actively ensuring compliance with shareholder disclosure regulations as per the Securities and Futures Ordinance[37]. - The company has a structured governance framework to manage its interests and voting rights effectively[37]. Employee and Management Costs - Employee costs for the first half of 2024 were RMB 233.6 million, compared to RMB 229.4 million in the same period of 2023[30]. - Total remuneration for directors and other key management personnel for the six months ended June 30, 2024, was RMB 2,693,000, compared to RMB 2,462,000 in 2023, reflecting an increase of approximately 9.4%[104]. - The contributions to retirement benefit plans for the same period were RMB 151,000, slightly down from RMB 157,000 in 2023, indicating a decrease of about 3.8%[104]. Cash Flow and Liquidity - The company reported operating cash inflow of RMB 312,681,000, a decrease of 56% compared to RMB 711,673,000 in the same period of 2023[54]. - The net cash generated from operating activities was RMB 239,089,000, down from RMB 686,358,000 year-on-year, indicating a significant decline in operational efficiency[54]. - The company incurred a net cash outflow from investing activities of RMB 110,548,000, compared to an outflow of RMB 95,921,000 in the previous year[54]. - The total cash and cash equivalents at the end of the period stood at RMB 1,358,323,000, down from RMB 873,337,000 in the previous year[54]. Strategic Focus and Future Plans - The group is focusing on innovation and market expansion, particularly in promoting new types of specialty paper products[9]. - The company plans to continue improving its digitalization and smart management capabilities to strengthen overall management levels[9]. - The company continues to focus on the development of high-quality specialty paper products to meet the growing demand for environmentally friendly products in the market[11]. - The company plans to continue its focus on the production and sale of paper products, electricity, and steam, aiming for market expansion[55].

Financial Performance - For the first half of 2024, China Sunshine Paper Holdings Company Limited reported revenue of RMB 3,956.6 million, a decrease of approximately 6.0% compared to RMB 4,208.4 million in the first half of 2023[2]. - The gross profit for the first half of 2024 was RMB 566.4 million, down about 11.3% from RMB 638.3 million in the same period last year[2]. - The profit attributable to the owners of the company decreased by approximately 1.7% to RMB 189.4 million from RMB 192.6 million in the first half of 2023[2]. - The total comprehensive income for the period was RMB 215.4 million, down from RMB 223.4 million in the first half of 2023[4]. - Basic and diluted earnings per share for the period were RMB 0.18, compared to RMB 0.19 in the previous year[4]. - The company's segment profit for the six months ended June 30, 2024, was RMB 657,124,000, compared to RMB 721,353,000 for the same period in 2023[20]. - Paper product sales decreased by 6.3% to RMB 3,729.8 million, with a sales volume of approximately 1,014,600 tons compared to 952,000 tons in the previous year[48]. - Gross profit decreased from RMB 638.3 million in the first half of 2023 to RMB 566.4 million in the first half of 2024, with a gross margin decline from 15.2% to 14.3%[51]. Income and Expenses - Other income increased to RMB 173.2 million in the first half of 2024, compared to RMB 144.5 million in the same period last year[4]. - The company's administrative expenses for the six months ended June 30, 2024, were RMB 215,854,000, slightly higher than RMB 214,765,000 in 2023[20]. - Total employee costs, including directors' remuneration, reached RMB 233,552,000, a slight increase from RMB 229,371,000 in the previous year[27]. - Financing costs decreased by 9.4% to RMB 88.7 million, with the proportion of revenue dropping from 2.3% to 2.2%[52]. - Income tax expense increased to RMB 65.8 million in the first half of 2024, with an effective tax rate of 23.2% compared to 18.5% in the previous year[53]. Assets and Liabilities - Non-current assets totaled RMB 7,432.2 million as of June 30, 2024, slightly down from RMB 7,445.2 million at the end of 2023[5]. - Current liabilities amounted to RMB 5,262.7 million, a decrease from RMB 5,714.3 million at the end of 2023[5]. - The total equity attributable to the owners of the company increased to RMB 4,756.4 million from RMB 4,569.4 million at the end of 2023[7]. - As of June 30, 2024, the company's net current liabilities amounted to approximately RMB 603,873,000[9]. - Trade receivables as of June 30, 2024, totaled RMB 742,117,000, an increase from RMB 564,762,000 at the end of 2023[31]. - Trade payables as of June 30, 2024, totaled RMB 903,242,000, down from RMB 1,010,140,000 as of December 31, 2023, representing a decrease of approximately 10.6%[34]. - Total debt, including bank and other borrowings as well as lease liabilities, was RMB 3,794.2 million as of June 30, 2024, down from RMB 3,885.9 million as of December 31, 2023[55]. Cash Flow and Financing - New bank loans raised during the six months ended June 30, 2024, amounted to RMB 1,745,921,000, with repayments totaling RMB 1,703,279,000[37]. - The total cash outflow for leases during the reporting period was RMB 5,926,000, compared to RMB 20,106,000 for the six months ended June 30, 2023[36]. - The group has pledged properties, plants, equipment, and land use rights valued at RMB 2,097,527,000 as collateral for bank loans as of June 30, 2024[37]. - The interest rates for new loans ranged from 1.6% to 4.75% as of June 30, 2024, compared to 2.00% to 6.30% for the same period in the previous year[37]. Operational Efficiency - The inventory turnover rate improved from 4.5 times in the same period last year to 5.3 times in the first half of 2024, enhancing operational efficiency[45]. - Inventory turnover days improved to 34 days in the first half of 2024, compared to 41 days in the first half of 2023[55]. - The current ratio improved to 0.89 as of June 30, 2024, from 0.82 as of December 31, 2023[55]. Future Outlook - The company plans to continue focusing on innovation, optimizing asset management, and enhancing profitability in the second half of 2024[46]. - The company aims to improve its governance level by enhancing environmental protection regulations and risk control mechanisms[45].

Sales Performance - For the fiscal year 2023, the total sales amount of steam from Shengshi Thermal Power to Shengtai Pharmaceutical was RMB 146.5 million, which is below the revised annual cap of RMB 215.8 million[2] - The total sales amount of electricity from Shengshi Thermal Power to Shengtai Pharmaceutical for the fiscal year 2023 was RMB 60.3 million, lower than the revised annual cap of RMB 79.1 million[2] Revised Annual Caps - The revised annual caps for the new steam supply agreement for the two fiscal years ending December 31, 2024, are RMB 215.8 million and RMB 237.9 million respectively[2] - The revised annual caps for the new electricity supply agreement for the two fiscal years ending December 31, 2024, are RMB 79.1 million and RMB 87.2 million respectively[2] Supply Agreements - The new steam supply agreement is effective from January 1, 2022, to December 31, 2024, with an option to renew for up to three years[2] - The new electricity supply agreement is also effective from January 1, 2022, to December 31, 2024, with a similar renewal option[2] - The agreements aim to ensure that the steam and electricity produced primarily meet the production needs of the shareholders of Shengshi Thermal Power and Shengtai Pharmaceutical[2] Company Focus and Reporting - The company continues to focus on generating reasonable returns outside its core business through the supply of steam and electricity[2] - The board of directors has clarified certain errors in the annual report due to oversight, with revisions highlighted for reference[1] - The company maintains that all other information in the 2023 annual report remains unchanged except for the disclosed revisions[3]

Industry Performance - In the fiscal year 2023, the paper and paper products industry in China saw a 5.3% year-on-year decline in producer prices, while the prices for wood and pulp decreased by 3.1%[12] - The total output of paper and paperboard in China reached 14,405.5 million tons in 2023, marking a 6.6% year-on-year increase[12] - The revenue of large-scale paper and paper products enterprises in China was RMB 1,392.62 billion, a decrease of 2.4% year-on-year, while total profits amounted to RMB 50.84 billion, reflecting a 4.4% year-on-year growth[12] - The overall economic recovery post-COVID-19 and geopolitical conflicts has led to a weak recovery in total demand in the Chinese market[12] Company Strategy and Management - The company emphasized a management theme of "refinement, innovation, and breakthrough" to enhance cost efficiency and promote technological innovation[13] - The company accelerated the development of new products in 2023, focusing on differentiated production and market development[13] - The company adopted lean production management and improved internal governance through digitalization and intelligence[13] - The company maintained a customer-centric approach, shifting from merely meeting customer needs to creating customer demand[13] - The company successfully completed its operational goals despite a challenging economic environment[13] - The company aims to enhance its competitive advantage and industry position through a series of strategic initiatives[13] Financial Performance - In the fiscal year 2023, the group achieved a sales volume of 2.013 million tons of mechanical paper, an increase of 3.1% compared to 1.953 million tons in the same period of 2022[14] - Total revenue for the fiscal year 2023 was approximately RMB 8,359.5 million, a decrease of 12.4% from RMB 9,538.2 million in the fiscal year 2022, primarily due to a decline in selling prices[20] - The group reported a profit attributable to shareholders of RMB 393.3 million for the fiscal year 2023, representing a significant increase of 91.2% year-on-year[14] - The gross profit increased from approximately RMB 1,164.1 million in fiscal year 2022 to about RMB 1,309.9 million in fiscal year 2023, with a gross margin of approximately 15.7%, up 3.5 percentage points from 12.2%[23] - Sales costs for the fiscal year 2023 were approximately RMB 7,049.6 million, a reduction of about 15.8% compared to RMB 8,374.1 million in fiscal year 2022, aligning with the decrease in revenue[22] Market and Product Development - The group plans to enhance its market share in existing products while promoting new types of specialty paper products in 2024, aiming to improve overall profitability[15] - The group is focusing on research and development of new energy plant technologies to reduce raw material costs and support carbon neutrality goals[16] - The group achieved a sales revenue of RMB 2,079.1 million from coated white cardboard, accounting for 24.9% of total revenue in fiscal year 2023[21] - The group aims to optimize processes and enhance digitalization and intelligence levels to improve management capabilities[15] Environmental Responsibility - The company continues to prioritize environmental protection and social responsibility, receiving honors such as "Water Efficiency Leader" and "Shandong Province Water Saving Benchmark Unit" during the reporting period[14] - The company has adopted a green production philosophy, utilizing recycled materials such as waste paper to produce high-end packaging paper, thereby reducing environmental impact and deforestation[84] - The company has been recognized as a benchmark unit for water conservation in Shandong Province in 2023 and awarded the title of Green Production Advocate by the Enterprise Green Development Research Institute[89] - The company has not reported any violations of environmental protection laws and regulations during the year, indicating a commitment to compliance and sustainability[91] - The company aims to enhance resource, energy, and water management levels while continuously improving the R&D and production capacity of environmentally friendly products[91] Corporate Governance - The company adheres to high standards of corporate governance, complying with all provisions of the corporate governance code as outlined in the listing rules for the fiscal year 2023[49] - The board of directors is responsible for the overall development and direction of the company, including the approval of annual budgets and major capital expenditures[51] - The board consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors, ensuring a balanced mix of expertise and experience[54] - The company has established an audit committee comprising all independent non-executive directors to oversee financial reporting and risk management[65] - The company emphasizes shareholder communication and has a dedicated section on its website for investor relations[78] Employee Welfare and Development - The total employee cost for the fiscal year 2023 was approximately RMB 504.2 million, with around 4,100 full-time employees in China and Hong Kong as of December 31, 2023[41] - The company provides various employee benefits, including "five insurances and one fund," paid leave, meal subsidies, and housing subsidies[115] - The company has established a structured employee welfare system and has not reported any major violations related to employment and employee benefits during the reporting period[115] - The company has implemented a comprehensive performance management system, focusing on individual contributions and establishing competitive compensation strategies for key positions[130] - The company organized a total of 1,953 internal training sessions in 2023, with 113,885 participants, ensuring 100% training coverage for both male and female employees[132] Community Engagement and Social Responsibility - The company donated 200,000 RMB to the county federation of trade unions for charitable purposes in 2023[146] - The company actively engages in community investment, providing internship opportunities for students and contributing to local economic development[146] Risk Management - The board conducted regular and annual reviews of its risk management and internal control systems, finding no significant issues during the fiscal year 2023[76] - The company has established a risk management manual to clarify responsibilities among management, the board, and the audit committee[76] - The company has a dedicated internal audit and monitoring department to assess the adequacy and effectiveness of its risk management and internal control systems[75] Shareholder Returns and Financial Strategy - The company did not recommend the payment of a final dividend for the fiscal year 2023[180] - The board emphasizes sustainable returns to shareholders as a primary goal, aiming for stable dividend payments[180] - The company retains earnings to enhance operational foundation and business development[180] - The company will not declare dividends if it believes it cannot meet its debt obligations after payment[180] Supplier Management - In 2023, the company registered 804 new suppliers and completed on-site evaluations for 176 suppliers, maintaining a total of 1,607 suppliers, with 98% being domestic suppliers[138] - The supplier performance evaluation process includes metrics such as pricing levels, delivery conditions, and quality issue resolution, ensuring a tiered management system for suppliers[138] - The company emphasizes green procurement, focusing on environmental and social standards when selecting suppliers, including certifications and labor rights compliance[138] Financial Reporting and Audit - The audit committee held two meetings during the fiscal year 2023, reviewing the consolidated financial statements and the external auditor's plans[150] - The external auditor fees for the fiscal year 2023 amounted to approximately RMB 2.1 million for audit services and RMB 0.3 million for non-audit services[153]

Financial Performance - Revenue for the fiscal year 2023 decreased by 12.4% to approximately RMB 8,359.5 million, down from RMB 9,538.2 million in fiscal year 2022[2] - Profit attributable to owners for fiscal year 2023 was approximately RMB 393.3 million, an increase of RMB 187.6 million or 91.2% compared to fiscal year 2022[2] - Gross profit for fiscal year 2023 was RMB 1,309.9 million, compared to RMB 1,164.1 million in fiscal year 2022[4] - Total comprehensive income for the year was RMB 448.2 million, up from RMB 235.5 million in the previous year[5] - Basic and diluted earnings per share for fiscal year 2023 were RMB 0.39, compared to RMB 0.20 in fiscal year 2022[5] - The company reported a profit of RMB 1,505,881,000 for the year, with a segment profit of RMB 1,158,182,000 from paper products and RMB 347,699,000 from electricity and steam[20] - The company reported a comprehensive profit before tax of RMB 595,426,000 in 2023, compared to RMB 358,879,000 in 2022, marking an increase of approximately 66%[22] - The company's profit before tax for 2023 was RMB 393,309,000, compared to RMB 205,729,000 in 2022, representing a significant increase[33] Revenue Breakdown - Total revenue for the year ended December 31, 2023, was approximately RMB 8,359,494,000, with paper products contributing RMB 7,916,297,000 and electricity and steam contributing RMB 443,197,000[18] - Revenue from the Chinese market accounted for RMB 8,187,765,000, while overseas revenue was RMB 171,729,000[18] - The company reported a decrease in revenue from the previous year, with paper products revenue down from RMB 9,133,329,000 to RMB 7,916,297,000[18] - Total revenue from external customers reached RMB 9,133,329,000 for the year ended December 31, 2022, with a total including electricity and steam of RMB 9,538,229,000[21] Expenses and Costs - Sales costs for fiscal year 2023 were approximately RMB 7,049.6 million, a reduction of about 15.8% from RMB 8,374.1 million in fiscal year 2022, attributed to lower raw material costs[65] - Other income for 2023 was RMB 291,439,000, a decrease from RMB 318,004,000 in 2022, indicating a decline of about 8.4%[26] - Financing costs for 2023 totaled RMB 175,577,000, slightly up from RMB 169,344,000 in 2022, representing an increase of approximately 3.6%[28] - Distribution and selling expenses for fiscal year 2023 were RMB 403.2 million, accounting for 4.8% of total revenue, compared to 4.2% in fiscal year 2022[67] - Administrative expenses increased to RMB 478.6 million in fiscal year 2023, representing 5.7% of total revenue, up from 4.5% in fiscal year 2022[67] Assets and Liabilities - Non-current assets totaled RMB 7,445.2 million as of December 31, 2023, compared to RMB 7,359.1 million in the previous year[6] - Current liabilities amounted to RMB 4,709.9 million, slightly down from RMB 4,745.4 million in the previous year[6] - Total equity attributable to owners increased to RMB 4,569.4 million from RMB 4,091.9 million in the previous year[7] - The net current liabilities as of December 31, 2023, were approximately RMB 1,004,376,000, with expectations of renewing existing bank financing[16] - The balance of cash and cash equivalents decreased to RMB 144,054,000 in 2023 from RMB 284,431,000 in 2022, a reduction of about 49.3%[41] Shareholder Activities - The company issued 162,000,000 shares at a subscription price of HKD 2.48 per share, raising approximately RMB 365.31 million for general working capital[57] - The company repurchased and canceled 51,276,000 shares for a total cost of approximately RMB 4.55 million in 2023[57] - The company believes that the share repurchase is in the best interest of the company and its shareholders, leading to an increase in earnings per share[83] Operational Focus and Strategy - The company continues to focus on the production and sales of paper products, electricity, and steam as its main business operations[8] - The company plans to enhance its market share in existing main products and promote new types of specialty paper products in 2024, capitalizing on market structure adjustments[61] - The company is focusing on R&D for new specialty paper products and aims to strengthen its brand influence in the national market[62] - The company is actively developing technologies related to a new type of energy plant to reduce raw material costs and optimize its financial structure[62] - The company emphasizes environmental protection and has received honors such as "Water Efficiency Leader" and "Shandong Province Water-saving Benchmark Unit" during the reporting period[60] Employee and Management Information - Total employee costs, including directors' remuneration, rose to RMB 504,171,000 in 2023 from RMB 442,271,000 in 2022, reflecting an increase of approximately 14.0%[10] - As of December 31, 2023, the group employed approximately 4,100 full-time employees in China and Hong Kong, with employee costs for the fiscal year amounting to RMB 504.2 million[80] Compliance and Governance - The company has adhered to the corporate governance code and all provisions of the listing rules during the fiscal year 2023[86] - The audit committee has reviewed the annual performance for the fiscal year 2023 and confirmed compliance with all applicable accounting standards and regulations[89] - The financial data disclosed in the performance announcement has been reviewed by the audit committee and approved by the board of directors[89]

China Sunshine Paper Holdings Company Limited 中國陽光紙業控股有限公司* (於開曼群島註冊成立的有限公司) 股份代號: 2002 202 中期報 目錄 公司資料 24 簡明綜合權益變動表 2 營運回顧及展望 25 簡明綜合現金流量表 4 管理層討論及分析 26 簡明綜合中期財務報表附註 7 企業管治及其他資料 11 簡明綜合損益及其他全面收益表 20 簡明綜合財務狀況表 22 王東興先生（主席） 授權代表 施衛新先生（副主席） 王東興先生 王長海先生（總經理） 陳貽平先生 張增國先生（副總經理） 慈曉雷先生（副總經理） 非執行董事 中國 山東省 吳蓉女士 濰坊市 獨立非執行董事 昌樂經濟開發區 郵編：262400 章濤女士（於二零二三年八月二十三日獲委任） 王澤風先生 香港主要營業地點 焦捷女士 單雪艷女士（於二零二三年八月二十三日辭任） 香港 北角 審核委員會 英皇道663號 泓富產業千禧廣場17樓1702室 章濤女士（主席，於二零二三年八月二十三日獲委任） 單雪艷女士（主席，於二零二三年八月二十三日辭任） 註冊辦事處 王澤風先生 焦捷女士 Cricket Sq ...

Financial Performance - Top Speed recorded a net loss of approximately CAD 14,800,000 for the fiscal year 2022[7]. - The impairment loss recognized for Top Speed's investment amounted to RMB 245,800,000 during the fiscal year 2022[7]. - As of December 31, 2022, Top Speed reported remaining assets of $10,039,823 and total remaining liabilities of $16,735,803, resulting in a net remaining liability of -$6,695,980[12]. - The financial forecast for the fiscal year 2022 indicates a projected net profit margin of 16%, which is expected to gradually increase to approximately 29% by the fiscal year 2027[13]. - Due to underperformance relative to expectations, Top Speed anticipates continued losses until at least the fiscal year 2025, with a projected net profit margin of 9% at that time[13]. - The valuation for the fiscal year 2022 reflects significant changes from the fiscal year 2021, primarily due to changes in financial forecasts leading to impairment losses[12]. Revenue Projections - The estimated revenue for the fiscal year 2023 is projected to be $18.25 million, increasing to $195.28 million by fiscal year 2028[9]. - The estimated electricity supply revenue for the internet data center power business is expected to start at $0.08 per kWh in fiscal year 2023, declining to $0.07 per kWh by fiscal year 2028 due to increased competition[10]. - The estimated gross profit for fiscal year 2028 is projected to be $83.42 million, with operating costs including depreciation and interest expenses factored in[9]. Business Operations - The liquefied natural gas (LNG) business faced a 100% increase in fuel costs, rising from USD 7 per GJ to USD 15 per GJ, severely impacting profit margins[5]. - The liquefied natural gas (LNG) business is anticipated to resume operations in fiscal year 2025, with a projected fixed selling price of $680 per ton and a capacity of 90,000 tons per year[10]. - The company expects to achieve an LNG facility utilization rate of 80% by fiscal year 2028, up from 55% in fiscal year 2025[10]. - The estimated operating costs will include additional logistics and delivery costs associated with the LNG business, adjusted annually for inflation[11]. - The company has completed necessary preparations for the LNG business, including obtaining relevant permits and identifying a construction site for an independent liquefaction plant[10]. Corporate Strategy - The company plans to relocate its internet data center power business to the United States due to a more favorable regulatory environment[6]. - The company has actively developed strategies to adapt to changing market trends, including support for clients in the artificial intelligence sector[6]. Share Issuance and Capital - The placement agreement resulted in the issuance of 85,802,000 shares, representing approximately 9.48% of the company's expanded issued share capital[2]. - The total number of shares available for issuance under the share incentive plan as of December 31, 2022, is 63,484,800, representing approximately 6.48% of the total shares issued on that date[14]. Financial Valuation - The discount rate used for the valuation is 29.40%, based on the weighted average cost of capital[11]. - The valuation is based on historical financial data and a six-year financial forecast, emphasizing the company's future revenue-generating capabilities[8]. - Top Speed's 45% equity acquisition cost RMB 250,000,000, with its market value estimated at RMB 276,000,000 as of June 30, 2021[4].

Financial Performance - For the first half of 2023, China Sunshine Paper Holdings reported revenue of RMB 4,208.4 million, a decrease of approximately 4.3% compared to RMB 4,395.2 million in the first half of 2022[2] - Gross profit for the first half of 2023 was RMB 638.3 million, an increase of approximately 4.6% from RMB 610.1 million in the same period last year[2] - Profit attributable to owners of the company increased by approximately 18.4% to RMB 192.6 million, compared to RMB 162.7 million in the first half of 2022[2] - The company reported a pre-tax profit of RMB 274.2 million, slightly up from RMB 270.6 million in the previous year[3] - Total comprehensive income for the period was RMB 223.4 million, compared to RMB 179.4 million in the same period last year[3] - Basic and diluted earnings per share for the period were RMB 0.19, up from RMB 0.16 in the previous year[3] - The company achieved a net profit of RMB 192.6 million for the first half of 2023, representing an 18.4% increase year-on-year[46] - The company maintained a gross margin of 15.2%, up from 13.9% in the previous year[46] Revenue Breakdown - Total revenue for the six months ended June 30, 2023, was RMB 4,208,395,000, with paper products contributing RMB 3,981,445,000 and electricity and steam contributing RMB 226,950,000[13] - The revenue from external customers for paper products was RMB 3,981,445,000, while the revenue from electricity and steam was RMB 226,950,000 for the same period[15] - Paper product sales decreased by 5.2% to RMB 3,981.4 million, with a sales volume of approximately 952,000 tons compared to 940,000 tons in the previous year[49] Expenses and Costs - The company’s administrative expenses for the six months ended June 30, 2023, were RMB 214,765,000, an increase from RMB 191,280,000 in the same period of the previous year[18] - The company’s financing costs for the six months ended June 30, 2023, were RMB 85,303,000, compared to RMB 73,822,000 for the same period in 2022[18] - Sales cost for the first half of 2023 was RMB 3,570.1 million, a reduction of 5.7% from RMB 3,785.0 million in the same period last year[51] - Administrative expenses increased by 9.8% to RMB 221.8 million, with the proportion of revenue rising from 4.6% to 5.3%[53] - Financing costs rose by 12.5% to RMB 98.0 million, with the proportion of revenue increasing from 2.0% to 2.3%[53] Assets and Liabilities - As of June 30, 2023, total assets less current liabilities amounted to RMB 5,930.3 million, down from RMB 6,121.7 million at the end of 2022[4] - The company’s cash and cash equivalents, including restricted bank deposits, totaled RMB 4,365.9 million, a decrease from RMB 4,745.4 million at the end of 2022[4] - Non-current liabilities decreased to RMB 1,384.9 million from RMB 1,695.8 million at the end of 2022[6] - As of June 30, 2023, the company's net current liabilities were approximately RMB 1,518,172,000[8] - The company's accounts receivable amounted to RMB 20,540,000, a decrease from RMB 105,376,000 as of December 31, 2022[31] - The aging analysis of trade payables shows a total of RMB 1,264,927,000 as of June 30, 2023, compared to RMB 1,395,400,000 as of December 31, 2022, indicating a decrease of approximately 9.36%[33] - The company's lease liabilities as of June 30, 2023, were RMB 63,944,000, up from RMB 41,705,000 as of December 31, 2022, reflecting a growth of approximately 53.3%[34] Cash Flow and Financing - The company raised new loans totaling RMB 1,751,385,000 during the interim period, compared to RMB 2,156,423,000 for the same period last year, indicating a decrease of approximately 18.7%[38] - The company has pledged bank deposits of RMB 1,155,287,000 as collateral for borrowings, a slight decrease from RMB 1,211,300,000 as of December 31, 2022[37] - The interest rates for new loans range from 2.00% to 6.30%, compared to 2.30% to 7.80% for the same period last year[38] Investments and Capital Expenditures - The company has committed to capital expenditures of RMB 294.3 million for property, plant, and equipment as of June 30, 2023[43] - Capital expenditures for the first half of 2023 were approximately RMB 151.5 million, primarily for the acquisition of new production line equipment and land[59] - The group had no contingent liabilities as of June 30, 2023[59] Shareholder Actions - The company did not declare an interim dividend for the six months ended June 30, 2023, compared to a total of RMB 139,678,000 in dividends declared for the same period in 2022[26] - The company repurchased and canceled 51,276,000 shares at a total cost of approximately HKD 117.1 million during the six months ended June 30, 2023[42] - The board of directors decided not to declare an interim dividend for the first half of 2023, consistent with the previous year[66] - The board believes that the share repurchase is in the best interest of the company and its shareholders, leading to an increase in earnings per share[68] Regulatory and Compliance - The company has adopted new and revised International Financial Reporting Standards effective January 1, 2023, with no significant impact on its financial performance and position[12] - The company anticipates that the adoption of certain revised International Financial Reporting Standards will not have a significant impact on its interim financial statements[12] - The mid-term report containing all information required by the listing rules will be sent to shareholders and published on the stock exchange and the company's website[68]