Core Viewpoint - China Green Island Technology (02023) reported a revenue of RMB 597 million for the six months ending June 30, 2025, reflecting a year-on-year growth of 7.95% [1] - The company's net profit attributable to shareholders was RMB 43.183 million, representing a year-on-year increase of 3.76% [1] - Earnings per share stood at RMB 0.09 [1] Financial Performance - Revenue reached RMB 597 million, up 7.95% compared to the previous year [1] - Net profit attributable to shareholders was RMB 43.183 million, an increase of 3.76% year-on-year [1] - Earnings per share recorded at RMB 0.09 [1]

Financial Performance - Revenue for the six months ended June 30, 2025, was RMB 596,928,000, an increase of 7.97% compared to RMB 552,976,000 for the same period in 2024[4] - Gross profit for the same period was RMB 69,473,000, representing a gross margin of approximately 11.6%[4] - Operating profit decreased to RMB 50,320,000 from RMB 54,883,000, a decline of 8.5% year-on-year[4] - Net profit for the period was RMB 43,219,000, up 3.9% from RMB 41,617,000 in the previous year[4] - The group reported a profit attributable to owners of the company of RMB 43,183 thousand for the six months ended June 30, 2025, compared to RMB 41,617 thousand for the same period in 2024, representing a growth of 3.77%[27] - The group's net profit for the six months was approximately RMB 43.2 million, an increase of about 3.8% from RMB 41.6 million in 2024[57] Assets and Liabilities - Total assets as of June 30, 2025, were RMB 1,638,849,000, a decrease from RMB 1,694,817,000 at the end of 2024[5] - Current liabilities decreased to RMB 852,026,000 from RMB 949,153,000, indicating improved liquidity[6] - The company’s total equity increased to RMB 500,819,000 from RMB 447,396,000, reflecting a stronger capital position[6] - The group had non-current assets valued at RMB 832,797 thousand as of June 30, 2025, an increase from RMB 801,048 thousand as of December 31, 2024, indicating growth in asset base[29] - The total liabilities related to accounts payable as of June 30, 2025, is RMB 475.03 million, a decrease from RMB 531.15 million as of December 31, 2024, reflecting a reduction of approximately 10.6%[36] Cash Flow and Financing - Cash and cash equivalents were RMB 24,904,000, down from RMB 32,087,000 at the end of 2024[5] - The group incurred net financing costs of RMB (2,433) thousand for the six months ended June 30, 2025, a decrease from RMB (8,867) thousand in the same period of 2024, indicating improved financing efficiency[20] - The group has secured additional bank financing after June 30, 2025, enhancing its liquidity position[11] - The company has taken measures to alleviate cash flow pressure and improve financial conditions, indicating a proactive approach to financial management[7] - As of June 30, 2025, the company's bank and other borrowings amounted to approximately RMB 585,000,000, a decrease from RMB 637,500,000 as of December 31, 2024[64] Revenue Breakdown - Revenue from the mainland China market was RMB 487,867 thousand, up from RMB 443,469 thousand, reflecting an increase of 10%[15] - The group's CMS business revenue for the same period was approximately RMB 403.3 million, reflecting an increase of about 11.8% from RMB 360.8 million in 2024[47] - The OBM business revenue reached approximately RMB 68.7 million, marking an increase of about 18.0% from RMB 58.2 million in 2024[48] - The wholesale business revenue decreased by approximately 6.7% to RMB 125.0 million from RMB 134.0 million in 2024[49] Expenses and Cost Management - Sales expenses increased by approximately 44.8% to RMB 13.9 million, primarily due to higher transportation, travel, and employee compensation costs[53] - Administrative and other operating expenses rose by approximately 14.8% to RMB 35.0 million, driven by increased employee compensation and research and development expenses[54] - The company has implemented multiple cost control measures to improve operating cash flow, reflecting a strategic focus on financial health[11] Research and Development - Research and development costs for the six months ended June 30, 2025, included employee benefits of RMB 3,596 thousand and materials and others of RMB 8,135 thousand, showing a focus on innovation[19] Corporate Governance - The company has adhered to the corporate governance code as per the listing rules, except for the separation of the roles of Chairman and CEO, which are held by Mr. Yu Yue Rong[82] - The board believes that having the same individual serve as both Chairman and CEO provides strong and consistent market leadership, essential for effective business planning and decision-making[82] - All major decisions are consulted with board members, and three independent non-executive directors provide independent insights to ensure a balance of power within the board[82] - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules, and all directors have confirmed compliance during the reporting period[83] Employee and Operational Metrics - The company employed a total of 493 employees as of June 30, 2025, an increase from 466 employees as of June 30, 2024[71] - The total employee costs during the reporting period were approximately RMB 33,400,000, compared to RMB 30,600,000 for the same period in 2024, reflecting an increase of about 5.9%[71] Future Outlook - The company plans to continue upgrading existing production lines to improve automation levels and product quality, as well as expand and develop sales networks and platforms[73] - The company believes that its existing financial resources, along with funds generated from operations, will be sufficient to meet future expansion plans[66] Dividend and Shareholder Information - The company did not recommend any interim dividend for the six months ended June 30, 2025, consistent with the previous year[41] - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2025, compared to no dividend in 2024[78] - Shareholders who opt for printed copies will receive the interim report at an appropriate time[84] Miscellaneous - The company has not conducted any fundraising activities during the reporting period and up to the date of the announcement[67] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the reporting period[74] - As of June 30, 2025, the company had no significant contingent liabilities, consistent with the previous year[69] - The interim report for the reporting period will be published on the Hong Kong Stock Exchange website and the company's website[84] - The board consists of three executive directors and three independent non-executive directors, ensuring a diverse governance structure[85]

Group 1 - The company, China Green Island Technology (02023.HK), will hold a board meeting on August 29, 2025, to review and approve its interim results for the six months ending June 30, 2025, and to declare an interim dividend if applicable [1] - For the fiscal year 2024, the company's revenue is approximately 907 million, representing a year-on-year increase of about 28.5% [1]

中國綠島科技有限公司（「本公司」）董事會（「董事會」）謹此宣佈將於二零二五年 八月二十九日（星期五）下午四時正在香港灣仔皇后大道東248號大新金融中心20 樓2003室會議室舉行董事會會議，藉以（其中包括）考慮及酌情批准本公司及其附 屬公司截至二零二五年六月三十日止六個月之中期業績及其刊發，以及考慮建議 派發中期股息（如有）。 承董事會命 中國綠島科技有限公司 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告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，亦明確表示概不就因本公告全部或任何 部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 China Ludao Technology Company Limited 中 國 綠 島 科 技 有 限 公 司 （ 於 開 曼 群 島 註 冊 成 立 的 有 限 公 司 ） （股份代號：2023） 董事會會議通知 主席兼執行董事 虞岳榮 香港，二零二五年八月十九日 於本公告日期，董事會成員包括三名執行董事，即虞岳榮先生、王小兵先生及潘伊 莉女士；及三名獨立非執行董事，即陳彥璁先生、阮連法先生及丘潔娟女士。 ...

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: 中國綠島科技有限公司 （於開曼群島註冊成立的有限公司） FF301 呈交日期: 2025年8月4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) | 02023 | 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 | | 0.01 HKD | | 20,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.01 HKD | | 20,000,000 | 本 ...

Group 1 - The steel sector experienced a rebound, with Liugang Co. hitting the daily limit and achieving five consecutive trading limits in six days, while other stocks like Taigang Stainless and Hualing Steel also rose [1] - The Central Financial Committee's sixth meeting emphasized the need to advance the construction of a unified national market and to govern low-price disorderly competition, which could lead to an orderly exit of backward production capacity, benefiting industry profit recovery [1] - The comprehensive gross profit of the steel industry is expected to increase by 52.45% year-on-year to 281 yuan/ton in the first half of 2025, driven by the implementation of capacity exit policies [1] Group 2 - Longjiang Securities believes that the end of 2025 will be a critical node for the implementation of capacity reduction policies, with small and medium-sized private enterprises facing significant challenges to meet standards [1] - The "anti-involution" trend aims to clear out not only backward production capacity but also manufacturing and platforms with significant private enterprise participation, which are crucial for local employment and tax revenue [1] - The capital market exhibits a strong learning effect, with stock price reactions becoming increasingly anticipatory based on past supply-side reform experiences, suggesting that investors should seize policy opportunities early [2]

Financial Performance - The company's revenue for the reporting period reached approximately RMB 906.8 million, an increase of about 28.5% compared to the previous year[11]. - The net profit for the reporting period was approximately RMB 51.3 million, reflecting a growth of about 17.7% year-on-year[11]. - The CMS business revenue increased to approximately RMB 575.4 million, representing a growth of about 36.8% from RMB 420.6 million in the previous year[16]. - The OBM business revenue decreased to approximately RMB 25.7 million, a decline of about 65.8% from RMB 75.2 million in the previous year[17]. - The company reported a total comprehensive income attributable to owners of approximately RMB 37.8 million, down from RMB 39.1 million the previous year[13]. - The company's basic earnings per share were approximately RMB 0.10, compared to RMB 0.09 in the previous year[11]. - The wholesale business revenue for 2024 was approximately RMB 305,700,000, an increase of about 45.6% compared to RMB 209,900,000 in 2023[20]. - The sales cost for the reporting period was approximately RMB 765,000,000, representing an increase of about 33.6% from RMB 572,600,000 in 2023[21]. - The gross profit recorded was approximately RMB 141,800,000, an increase of about 6.5% from RMB 133,100,000 in 2023, with a gross margin of 15.6%, down 3.3% from 18.9% in 2023[22]. - The net profit for the period was approximately RMB 51,300,000, an increase of about 17.7% from RMB 43,600,000 in 2023, with a net profit margin decreasing from 6.2% in 2023 to 5.7% in 2024[23]. Strategic Initiatives - The company plans to enhance its strategic customer relationships and expand its domestic market presence while developing high-value-added products[11]. - The company aims to increase its investment in e-commerce channels to boost sales[11]. - The company is exploring potential investment opportunities to enhance competitiveness and synergy[11]. - The group plans to continue upgrading existing production lines to improve automation and product quality, and will invest in the development of aerosol products through its Chinese subsidiaries[52]. - For the fiscal year 2025, the group aims to strengthen supply chain construction, control procurement costs, and enhance R&D capabilities to develop high-value-added products[53]. - The group will continue to expand and develop its sales network and platforms to achieve business growth[52]. Corporate Governance - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange regulations, with a commitment to maintaining high standards of corporate governance[55]. - The board of directors emphasizes the importance of corporate culture, focusing on ethical and responsible conduct across all levels of the organization[57]. - The company aims to enhance long-term value for shareholders and stakeholders by focusing on financial performance and environmental, social, and governance (ESG) factors for sustainable growth[58]. - The board is responsible for strategic decision-making and overseeing financial performance, ensuring alignment with the company's long-term goals[59]. - The board consists of three executive directors and three independent non-executive directors, ensuring compliance with listing rules regarding independence and expertise[62]. - The company has adopted a "Director Nomination Procedure" to ensure a transparent and thoughtful process for evaluating and selecting board candidates[68]. - The board's composition reflects a balance of skills and experience necessary for effective leadership and governance, particularly in the aerosol industry[65]. - The company is committed to maintaining high standards of corporate governance and compliance with financial reporting regulations[63]. - The board will propose the reappointment of directors who are eligible and willing to stand for re-election at the upcoming annual general meeting[68]. Environmental, Social, and Governance (ESG) Practices - The company is increasingly aware of its ESG responsibilities and is focused on supporting a transition to a low-carbon and sustainable future[58]. - The board's responsibilities include overseeing business operations, strategy development, and ensuring the company's long-term success[66]. - The company has established a clear governance structure for environmental, social, and governance (ESG) matters, with a dedicated ESG working group consisting of 6 members, including 3 executive directors and 3 independent non-executive directors[149]. - The board of directors has spent significant time assessing the impact of ESG-related risks on operations and developing relevant policies to address these risks[148]. - The company is committed to maintaining high environmental management standards, continuously improving its environmental management system, and has achieved certification compliant with ISO 14001:2015[153]. - The company has implemented various measures to enhance employee environmental awareness and promote environmentally friendly work habits[153]. - The company conducts regular stakeholder engagement to understand their expectations and concerns, which informs better decision-making and impact management[144]. - The company engages in community participation and charitable activities to fulfill its social responsibilities[144]. Climate Change and Risk Management - The company is actively addressing climate-related risks as part of its operational strategy, focusing on the physical impacts of climate change, such as extreme weather events, which are considered operational risks[179]. - The company has established a governance framework to identify, assess, and manage climate-related risks, with oversight from the board of directors[191]. - The company collaborates with government and relevant institutions to stay updated on regulatory and financial policy changes related to climate change[191]. - The company has identified significant climate-related risks that could impact its operations, products, supply chain, and financial planning, and has implemented measures to manage these risks[192]. - The company is exploring various climate scenarios to assess potential impacts on its operations and to identify new risks that may arise from future climate changes[189]. - Transition risks include rising operational costs due to stricter environmental regulations and increased insurance premiums, necessitating significant compliance expenditures[197]. - The company plans to invest in energy-efficient product innovation to mitigate technology risks associated with increased capital and R&D expenditures[199]. - The company is monitoring updates on climate-related environmental policies to avoid unnecessary costs and expenditures[197]. Operational Metrics - Total assets as of December 31, 2024, were approximately RMB 1,694,800,000, an increase from RMB 1,389,000,000 in 2023, with a net current liability of approximately RMB 266,400,000[35]. - Inventory increased by approximately 18.5% to about RMB 57,600,000 from RMB 48,600,000 in 2023, primarily due to expanded production capacity[32]. - Accounts receivable as of December 31, 2024, were approximately RMB 90,100,000, an increase of about 24.4% from RMB 72,400,000 in 2023[33]. - The group employed a total of 486 employees as of December 31, 2024, compared to 423 employees in 2023, with total employee costs amounting to approximately RMB 55,000,000, up from RMB 43,800,000 in 2023[43]. - The total air pollutant emissions for 2024 were 630.68 kg of nitrogen oxides, 78.69 kg of sulfur dioxide, and 16.10 kg of particulate matter, showing an increase from 2023[158]. - The total greenhouse gas emissions for 2024 were 5,296.06 tons of CO2 equivalent, a decrease from 6,965.77 tons in 2023[160]. - The total water consumption in 2024 was 401,312 cubic meters, significantly higher than 175,597 cubic meters in 2023, marking an increase of about 128.5%[174]. - The total packaging materials consumed in 2024 amounted to 16,452.35 tons, up from 14,446.55 tons in 2023, which is an increase of approximately 13.9%[176].

Financial Performance - The total revenue for the year ended December 31, 2024, was RMB 906,846,000, representing a 28.5% increase from RMB 705,753,000 in 2023[3] - Gross profit for the same period was RMB 141,836,000, up from RMB 133,111,000, indicating a gross margin improvement[3] - Operating profit increased to RMB 63,929,000 from RMB 58,922,000, reflecting a growth of 5.4%[3] - Net profit for the year was RMB 51,283,000, compared to RMB 43,558,000 in the previous year, marking an increase of 17.5%[3] - Earnings per share rose to RMB 0.10 from RMB 0.09, showing a 11.1% increase year-over-year[4] - Revenue from external customers for 2024 was RMB 906,846,000, an increase from RMB 705,753,000 in 2023, representing a growth of approximately 28.5%[21] - Revenue from mainland China increased significantly to RMB 667,713,000 in 2024 from RMB 390,193,000 in 2023, marking an increase of approximately 71.1%[21] - The CMS business revenue was approximately RMB 575.4 million, up about 36.8% from RMB 420.6 million in the previous year[88] - The OBM business revenue decreased to approximately RMB 25.7 million, down about 65.8% from RMB 75.2 million in the previous year[89] - The wholesale business revenue increased to approximately RMB 305.7 million, a rise of about 45.6% from RMB 209.9 million in the previous year[90] - The gross profit for the reporting period was approximately RMB 141.8 million, an increase of about 6.5% year-on-year[92] - The gross margin decreased to approximately 15.6%, down about 3.3% from 18.9% in the previous year[92] - The total comprehensive income attributable to the owners of the company was approximately RMB 37.8 million, a decrease from RMB 39.1 million in the previous year[85] Assets and Liabilities - Total assets as of December 31, 2024, reached RMB 1,694,817,000, up from RMB 1,389,011,000, a growth of 22%[5] - The company's non-current assets increased to RMB 1,012,020,000 from RMB 889,759,000, reflecting a rise of 13.8%[5] - Current liabilities surged to RMB 949,153,000 from RMB 648,787,000, an increase of 46.2%[6] - The total equity attributable to the owners of the company was RMB 447,031,000, compared to RMB 409,184,000, indicating a growth of 9.2%[5] - The group recorded a net current liability of approximately RMB 266,356,000 as of December 31, 2024, indicating significant uncertainty regarding its ability to continue as a going concern[11] - The total value of accounts payable rose to RMB 531,148,000 in 2024 from RMB 231,968,000 in 2023, indicating a substantial increase in liabilities[69] - The company's accounts payable aged over 12 months was RMB 11,381,000 in 2024, slightly down from RMB 11,586,000 in 2023, suggesting improved payment practices[70] Cash Flow and Financing - The board believes that the group has sufficient cash resources to meet its operational funding and other financing needs for the next twelve months, based on a detailed review of cash flow forecasts[12] - The group has unutilized bank financing available as of December 31, 2024, which is expected to alleviate cash flow pressures[11] - The company issued two-year notes with a total face value of HKD 120,000,000 at an annual interest rate of 9.00%, resulting in net proceeds of approximately RMB 101,397,544 after issuance costs, with an actual annual interest rate of 11.03%[72] - The company's bank borrowings due within one year increased to RMB 341,729,000 in 2024 from RMB 300,709,000 in 2023[79] - The company's total liabilities related to bank borrowings decreased from RMB 311,114,000 in 2023 to RMB 279,078,000 in 2024 for non-current liabilities[78] Investments and Capital Expenditures - The company acquired land use rights for a total area of 126,981 square meters at a cost of approximately RMB 34.23 million[86] - The capital commitments related to property, plant, and equipment were approximately RMB 263.7 million as of December 31, 2024, slightly down from RMB 264.7 million in 2023[108] - As of December 31, 2024, the group's property, plant, and equipment amounted to RMB 801 million, an increase from RMB 635.5 million as of December 31, 2023, primarily due to capital expenditures of approximately RMB 155 million[99] Research and Development - Research and development costs for 2024 totaled RMB 24,093, an increase from RMB 19,810 in 2023, highlighting the company's commitment to innovation[32] - By 2025, the company aims to strengthen supply chain construction and enhance R&D capabilities to develop high-value-added products[119] Employee and Operational Costs - Employee costs totaled approximately RMB 55 million for the reporting period, an increase from RMB 43.8 million in the previous year, reflecting the hiring of 486 employees compared to 423 in 2023[111] Corporate Governance and Compliance - The audit committee has held two meetings during the reporting period to review interim and annual financial performance[125] - The company has adopted the standard code of conduct for securities trading for its directors, confirming compliance during the reporting period[122] - The remuneration committee has reviewed and provided recommendations on the compensation of individual executive directors and senior management[128] - The nomination committee has reviewed the board structure and diversity policies during the reporting period[130] - The company did not purchase, sell, or redeem any of its listed securities during the reporting period[131] Future Outlook and Strategy - The company plans to continuously upgrade existing production lines to improve automation levels and product quality[118] - The company will expand its sales network and platforms to achieve business growth and explore other investment opportunities[118] Miscellaneous - The company has not conducted any fundraising activities during the reporting period[117] - There are no significant post-reporting events up to the date of this announcement[120] - The group has no significant contingent liabilities as of December 31, 2024, unchanged from the previous year[109]

Financial Performance - For the six months ended June 30, 2024, the company's revenue was approximately RMB 553 million, representing an increase of about 36.1% compared to the same period in 2023[6]. - The net profit for the same period was approximately RMB 41.6 million, reflecting a growth of approximately 37.6% year-on-year[6]. - The company's CMS business revenue reached approximately RMB 360.8 million, an increase of about 25.8% compared to RMB 286.9 million in the same period last year[7]. - The OBM business generated revenue of approximately RMB 58.2 million, marking a growth of about 24.6% from RMB 46.7 million in the previous year[8]. - The wholesale business revenue surged to approximately RMB 134 million, a significant increase of about 84.1% compared to RMB 72.8 million in the same period last year[9]. - The gross profit for the same period was RMB 65,304,000, slightly down from RMB 65,674,000 in 2023, indicating a marginal decrease of about 0.56%[37]. - Operating profit increased to RMB 54,883,000 from RMB 41,413,000, reflecting a growth of approximately 32.5% year-over-year[37]. - Profit for the period increased to approximately RMB 41,600,000, up by RMB 11,300,000 from RMB 30,300,000 in 2023, primarily due to the increase in other income and gains[17]. - The company reported a profit of RMB 30,253,000 for the period, compared to a loss in the previous period[44]. - The company’s profit attributable to owners for the six months ended June 30, 2024, was RMB 41,617,000, compared to RMB 30,253,000 for the same period in 2023, representing an increase of approximately 37.4%[71]. Cost and Expenses - The company's cost of sales for the six months ended June 30, 2024, was approximately RMB 487.7 million, which is an increase of about 43.1% from RMB 340.7 million in the previous year[10]. - Selling expenses decreased by approximately 21.3% to RMB 9,600,000, down from RMB 12,200,000 in 2023, mainly due to reduced transportation and travel expenses[13]. - Administrative and other operating expenses increased by approximately 11.7% to RMB 30,500,000, compared to RMB 27,300,000 in 2023, primarily due to higher employee salaries and benefits[14]. - Net financing costs rose by approximately 18.7% to RMB 8,900,000, up from RMB 7,500,000 in 2023, mainly due to increased interest expenses on bank and other borrowings[15]. Assets and Liabilities - Total assets as of June 30, 2024, were approximately RMB 1,433,000,000, an increase from RMB 1,389,000,000 as of December 31, 2023[22]. - Total liabilities decreased to RMB 972,739,000 from RMB 979,445,000, a reduction of approximately 0.72%[40]. - Current liabilities net amount is approximately RMB 125,609,000, indicating reliance on short-term financing[49]. - The company reported a significant reduction in accounts payable, which decreased to RMB 66,438,000 from RMB 121,182,000 as of December 31, 2023, indicating improved cash flow management[80]. - The company’s total liabilities decreased to RMB 205,138,000 as of June 30, 2024, from RMB 231,968,000 as of December 31, 2023, indicating a reduction in financial obligations[80]. Cash Flow - Cash generated from operating activities was RMB 11,814,000, compared to a cash outflow of RMB 38,980,000 in the previous period[46]. - Net cash used in investing activities was RMB 45,331,000, an increase from RMB 39,449,000 in the prior period[46]. - Cash and cash equivalents at the end of the period stood at RMB 32,765,000, down from RMB 35,673,000[46]. - The company has implemented multiple cost control measures to improve operating cash flow[49]. - The company has secured additional bank financing after June 30, 2024, to alleviate liquidity pressure[49]. Shareholder Information - The company’s major shareholder, Mr. Yu, holds 250,644,000 shares, representing approximately 50.96% of the total equity as of June 30, 2024[92]. - Perfect Century Group Limited holds 35,400,000 shares, representing approximately 7.20% of the company’s equity[94]. - The company’s total issued shares as of June 30, 2024, is 491,800,000[93]. Corporate Governance - The company has established an Audit Committee responsible for reviewing financial reporting procedures, risk management, and internal control processes[100]. - The company has a Remuneration Committee that reviews and approves the remuneration schemes for directors and senior management, including salary and bonus plans[101]. - The company has a Nomination Committee that reviews the board's structure and diversity, making recommendations for director appointments and succession planning[102]. - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual, Mr. Yu[104]. - At the report date, at least 25% of the company's issued share capital is held by the public[105]. - The company has adopted the standard code of conduct for securities trading by directors, confirming compliance during the reporting period[106]. Future Plans and Strategies - The company plans to strengthen supply chain construction and control procurement costs while enhancing R&D capabilities to develop high-value-added products[7]. - The company aims to expand its product line through the development of medicinal and edible aerosol products and cosmetics via its subsidiary[7]. - The management will closely monitor domestic and international market trends to adjust strategies for better performance[7]. - The company will continue to explore new sales channels, particularly through e-commerce, to support sustainable revenue growth[7]. - The company plans to continue upgrading existing production lines to improve automation and product quality, as well as expand its sales network and platforms[35]. Legal Matters - The company received a favorable court ruling on December 21, 2021, ordering the seller of a 25% stake to pay RMB 2,827,500,000 in compensation[33]. - The company is seeking legal advice regarding potential claims against the seller and/or the operating company in China[32]. Research and Development - Research and development costs for the six months ended June 30, 2024, included employee benefits of RMB 3,587 thousand and materials and others of RMB 8,013 thousand[63].

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 552,976,000, an increase of 13.4% compared to RMB 487,672,000 for the same period in 2023[2] - The gross profit for the period was RMB 65,304,000, slightly down from RMB 65,674,000 in the previous year, resulting in a gross margin of approximately 11.8%[2] - Operating profit increased to RMB 54,883,000, up 32.5% from RMB 41,413,000 in the prior year[2] - The net profit for the period was RMB 41,617,000, representing a growth of 37.5% compared to RMB 30,253,000 in the same period last year[2] - The total comprehensive income for the period was RMB 50,723,000, down from RMB 78,760,000 in the previous year, primarily due to a significant decrease in other comprehensive income[2] - Basic and diluted earnings per share for the period were RMB 0.08, up from RMB 0.06 in the previous year[2] - For the six months ended June 30, 2024, the profit attributable to the company's owners was RMB 41,617,000, compared to RMB 30,253,000 for the same period in 2023, representing an increase of approximately 37.4%[17] - For the six months ended June 30, 2024, the company's revenue and net profit were approximately RMB 553,000,000 and RMB 41,600,000, representing increases of about 36.1% and 37.6% compared to the same period in 2023[33] Revenue Breakdown - Revenue for the six months ended June 30, 2024, reached RMB 552,976 thousand, a 36.0% increase from RMB 406,358 thousand in the same period of 2023[12] - Revenue from mainland China was RMB 443,469 thousand for the six months ended June 30, 2024, compared to RMB 281,849 thousand in 2023, representing a growth of 57.3%[9] - The total revenue from the United States was RMB 33,541 thousand for the six months ended June 30, 2024, a decrease of 39.8% from RMB 55,675 thousand in 2023[9] - Major customers contributed RMB 163,947 thousand in revenue for the six months ended June 30, 2024, up from RMB 123,021 thousand in 2023, reflecting a 33.4% increase[11] - The company's CMS business revenue for the same period was approximately RMB 360,800,000, a 25.8% increase from RMB 286,900,000 in 2023[35] - The OBM business revenue for the six months ended June 30, 2024, was approximately RMB 58,200,000, up 24.6% from RMB 46,700,000 in 2023[36] - The wholesale business revenue reached approximately RMB 134,000,000, marking an increase of about 84.1% compared to RMB 72,800,000 in 2023[37] Costs and Expenses - The company’s cost of sales for the six months ended June 30, 2024, was approximately RMB 487,700,000, an increase of 43.1% from RMB 340,700,000 in 2023[38] - Selling expenses decreased by approximately 21.3% to RMB 9,600,000 from RMB 12,200,000 in 2023, mainly due to reduced transportation and travel expenses[41] - Administrative and other operating expenses rose by approximately 11.7% to RMB 30,500,000 from RMB 27,300,000 in 2023, attributed to increased employee salaries and benefits[42] - Net financing costs increased by approximately 18.7% to RMB 8,900,000 from RMB 7,500,000 in 2023, mainly due to higher interest expenses on bank and other borrowings[43] Assets and Liabilities - As of June 30, 2024, total assets amounted to RMB 1,433,028,000, an increase from RMB 1,389,011,000 at the end of 2023[4] - The company's total liabilities decreased slightly to RMB 972,739,000 from RMB 979,445,000 at the end of 2023[4] - The company reported a current liability net amount of approximately RMB 125,609,000, indicating reliance on short-term financing[5] - The net accounts receivable as of June 30, 2024, was RMB 190,344,000, a slight decrease from RMB 193,767,000 as of December 31, 2023, reflecting a decline of about 1.4%[21] - The total accounts payable as of June 30, 2024, was RMB 66,438,000, down from RMB 121,182,000 as of December 31, 2023, showing a significant decrease of approximately 45.0%[25] - The carrying amount of construction in progress related to buildings and equipment in Taizhou, China, was approximately RMB 577,620,000 as of June 30, 2024[19] - The carrying amount of property, plant, and equipment was RMB 671,445,000, up from RMB 635,496,000 as of December 31, 2023, indicating a growth of approximately 5.6%[19] Government Support and Financing - The company received government subsidies amounting to RMB 26,000 thousand during the six months ended June 30, 2024, while no subsidies were reported in the same period of 2023[12] - The company reported a net financing cost of RMB (8,867) thousand for the six months ended June 30, 2024, compared to RMB (7,501) thousand in 2023, indicating an increase in financing costs[14] - The company issued convertible bonds totaling HKD 93,300,000 (approximately RMB 77,224,000) with a conversion price of HKD 2.00 per share and an annual interest rate of 5.87%[28] Strategic Plans and Developments - The company plans to strengthen supply chain construction and control procurement costs while enhancing R&D capabilities to develop high-value-added products[34] - The company will continue to explore business development opportunities, including expanding its product line with medicinal and edible aerosol products[35] - The company aims to maintain and expand market share in both CMS and OBM businesses while actively developing new sales channels[34] - The company plans to continue upgrading existing production lines to improve automation levels and product quality[61] - The company will expand and develop sales networks and platforms to achieve business growth[61] Legal and Governance - The company was awarded a favorable judgment by the Hong Kong High Court on December 21, 2021, ordering Perfect Century Group Limited to pay a total compensation of RMB 2,827,500,000[59] - The audit committee has been established to oversee financial reporting procedures and risk management[63] - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules[66] - The board believes that having the same individual serve as both chairman and CEO provides strong and consistent market leadership[65] Other Information - The company has no significant contingent liabilities as of June 30, 2024[31] - The group had no significant contingent liabilities as of June 30, 2024, consistent with the previous year[53] - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[55] - No significant post-reporting events occurred after June 30, 2024, up to the date of this announcement[62] - The company has not conducted any fundraising activities in the 12 months leading up to this announcement[60] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[62]