Core Viewpoint - Sunshine Paper Holdings (02002) anticipates a decline in profit attributable to shareholders for the six months ending June 30, 2025, by approximately 55% to 65% compared to the same period in 2024 [1] Group Performance - The expected performance downturn is primarily attributed to a decrease in paper product prices, leading to a decline in revenue and gross profit [1] - A reduction in value-added tax has resulted in a decrease in unconditional government subsidies [1] - The sluggish real estate market in China has exacerbated operating losses for Sunshine Prince (Shouguang) Specialty Paper Co., Ltd., which will transition from an associate to a wholly-owned subsidiary by June 30, 2025 [1] - There are also fair value losses on financial assets measured at fair value through profit or loss [1] Financial Outlook - Despite the anticipated decline in profit, the board believes that the overall financial condition and operations of the group remain sound and stable [1] - The company maintains an optimistic outlook for long-term growth and development [1]

Group 1 - The company Sunshine Paper (02002) anticipates a decline in profit attributable to shareholders of approximately 55% to 65% for the six months ending June 30, 2025, compared to the same period in 2024 [1] - The decline in performance is primarily attributed to a decrease in paper product prices, leading to reduced revenue and gross profit [1] - The company also faces challenges due to a downturn in the Chinese real estate market, which has exacerbated losses at its subsidiary, Sunshine Prince (Shouguang) Specialty Paper Co., Ltd [1] Group 2 - The company reports a decrease in unconditional government subsidies due to a reduction in value-added tax [1] - Despite the challenges, the board believes that the overall financial condition and operations of the company remain stable and robust [1] - The company maintains an optimistic outlook for its long-term growth and development [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或任何部 分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 由於本公司仍正在落實本集團截至二零二五年六月三十日止六個月之業績，本公佈 所載資料僅為董事會根據目前可得之資料對本集團該期間之管理賬目作出之初步評 估，並非以經本公司核數師審核或審閱或經本公司審核委員會審閱之任何數字或資 料為依據。 有關本集團業績之進一步詳情將根據上市規則於公佈本集團截至二零二五年六月三 十日止六個月之業績時披露。 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） 盈利警告 本公佈乃由中國陽光紙業控股有限公司（「本公司」）根據香港聯合交易所有限公司證 券上市規則（「上市規則」）第13.09條及香港法例第571章證券及期貨條例第XIVA部 項下內幕消息條文（定義見上市規則）作出。 本公司董事會（「董事會」）謹此知會本公司股東及有意投資者，根據對目前可得之資 料作 ...

Group 1 - The paper industry in Hong Kong is experiencing a strong upward trend, with companies like Nine Dragons Paper and Chenming Paper seeing increases of over 7%, reaching new highs [1] - A price increase wave has begun in the paper industry since August, with leading companies such as Nine Dragons Paper, Lee & Man Paper, and Shanying International announcing price hikes effective from August 1 [1] - This marks the fourth round of price increases in the packaging paper sector since July, indicating a significant acceleration in the frequency of industry price adjustments [1] Group 2 - The Guangdong Provincial Paper Industry Association has issued a proposal to promote high-quality development in the paper industry, advocating for a "de-involution" approach [1] - According to Zheshang Securities, the paper industry, characterized by an imbalance in supply and demand and operating at a profit bottom, is expected to benefit from the "de-involution" initiative [1]

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 中國陽光紙業控股有限公司 呈交日期: 2025年8月1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) | 02002 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.1 | HKD | | 200,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.1 | HKD | | 200,000,000 | 本月底法定/註冊 ...

Core Viewpoint - The recent surge in Hong Kong paper stocks is driven by a combination of falling raw material prices, improved demand, and low valuation levels, indicating a potential recovery in the paper industry [3][11]. Group 1: Market Performance - From June 20 to July 14, paper stocks in Hong Kong experienced a significant increase, with an average rise of approximately 15%, outperforming the Hang Seng Index [1][4]. - Notable companies such as Sunshine Paper and Nine Dragons Paper saw monthly gains of 19% and nearly 12%, respectively [1][3]. - The paper sector recorded a cumulative increase of 13.73% during this period, with a trading volume of 2.520 billion shares and a total transaction value exceeding 5.6 billion HKD [4][5]. Group 2: Cost and Pricing Dynamics - The decline in international wood pulp prices, with European softwood pulp prices dropping about 15% since the beginning of the year, has positively impacted paper companies' profit margins [3][10]. - Major companies have raised their factory prices for cultural paper by 300-500 HKD per ton since June, reflecting a strong demand recovery and low inventory levels in downstream sectors [3][10]. - The combination of lower costs and successful price increases is expected to enhance profit expectations for paper companies in the upcoming quarters [10][11]. Group 3: Demand Signals - Seasonal demand for educational materials during the summer is expected to boost printing needs, while packaging paper benefits from recovering orders in consumer electronics and home appliances [11]. - Export performance has been strong, with a 34% year-on-year increase in corrugated paper exports from January to May, particularly to emerging markets in Southeast Asia and the Middle East [11]. Group 4: Valuation and Market Sentiment - The paper sector in Hong Kong is currently undervalued, with dynamic P/E ratios for companies like Nine Dragons Paper and Lee & Man Paper below their five-year averages [11]. - Recent inflows from southbound funds into leading paper companies indicate a shift in market sentiment towards optimism regarding the sector's recovery [11].

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].