格隆汇8月14日丨江苏创新(02116.HK)宣布，董事会会议将于2025年8月26日(星期二)举行，藉以(其中包 括)考虑及批准集团截至2025年6月30日止六个月的中期业绩及其发布，并考虑建议派发中期股息(如 有)。 ...

香港交易所及結算所有限公司及香港聯合交易所有限公司對本公告的內容不負責任，對 其準確性或完整性亦不發表任何聲明，並明確表示，概不對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的任何損失承擔任何責任。 承董事會命 江蘇創新環保新材料有限公司 主席兼行政總裁 葛曉軍 Jiangsu Innovative Ecological New Materials Limited 江蘇創新環保新材料有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2116） 董事會會議通告 江蘇創新環保新材料有限公司（「本公司」及其附屬公司，統稱「本集團」）董事會（「董事 會」）謹此宣佈，董事會會議將於二零二五年八月二十六日（星期二）舉行，藉以（其中包 括）考慮及批准本集團截至二零二五年六月三十日止六個月之中期業績及其發佈，並考慮 建議派發中期股息（如有）。 中國，江蘇省，二零二五年八月十四日 於本公告日期，本公司執行董事為葛曉軍先生、顧菊芳女士、黃磊先生、蔣才君先生及 范亞強先生；本公司非執行董事為顧耀先生；本公司獨立非執行董事為樊鵬先生、 管東濤先生及吳燕女士。 ...

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 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) | 02116 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | 1,500,000,000 | | HKD | | 0.01 HKD | | 15,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 1,500,000,000 | HKD | | 0.01 HKD | | 15,000,000 | 本月底法定/註冊股本總額： HKD 15,000,000 致：香港交易及結算所有限公司 公司名稱: 江蘇創新環保新材料有限公司 呈交日期: 20 ...

Group 1 - Jiangsu's high-tech industry output accounted for 51.4% of the total industrial output in the first quarter, reflecting the effectiveness of the innovation-driven development strategy and industrial transformation [1] - The number of high-tech enterprises in Jiangsu exceeds 57,000, with 50 companies listed as unicorns, representing 13.3% of the national total [2] - Jiangsu has established 44 national key laboratories, the highest among provinces, enhancing the role of enterprises in innovation [3] Group 2 - In the first quarter, high-tech industries in provincial-level high-tech zones accounted for 65.4% of the total industrial output, an increase of 0.5 percentage points from the end of last year [4] - Schneider Electric's factory in Wuxi was recognized as Jiangsu's first "sustainable lighthouse factory," showcasing advancements in digitalization and green transformation [5] - A series of financial initiatives in Wuxi aim to support the new industrial cycle, with a focus on "specialized, refined, and new" enterprises [6] Group 3 - The "Science and Technology Innovation Index" evaluation system in Suzhou has facilitated loans of 5.76 billion yuan to 1,438 technology-based SMEs, marking a 30% year-on-year increase [7] - Financial institutions are encouraged to innovate financial products to support the rapid growth of technology enterprises, with a focus on high-tech and innovative companies [7]

Financial Performance - In 2024, the total revenue recorded by the company was approximately RMB 182.2 million, a decrease of about 2.1% compared to the previous year[22]. - The net profit for 2024 was approximately RMB 14.0 million, representing a year-on-year decline of about 33.8%[22]. - Revenue decreased by 2.1% from RMB 186.1 million to RMB 182.2 million for the year ended December 31, 2023[31]. - Gross profit decreased from RMB 48.7 million to RMB 41.3 million, with a gross margin decline from 26.2% to 22.6%[37]. - Operating profit fell from RMB 25.2 million to RMB 17.5 million, primarily due to a decrease in average selling prices[35]. - Other income decreased from RMB 9.3 million to RMB 6.0 million, mainly due to reduced interest income and foreign exchange gains[39]. - Net profit decreased by 33.8% from RMB 21.1 million in 2023 to RMB 14.0 million in 2024, primarily due to a reduction in gross profit[45]. - The effective tax rates for the years ended December 31, 2023, and 2024 were 16.2% and 19.9%, respectively[44]. - Cash and cash equivalents decreased from RMB 95.2 million in 2023 to RMB 85.3 million in 2024[49]. - Return on equity decreased from 8.0% as of December 31, 2023, to 6.1% as of December 31, 2024, primarily due to a decrease in profit during the reporting period[66]. - Return on assets fell from 7.0% as of December 31, 2023, to 5.2% as of December 31, 2024, mainly due to a reduction in profit[67]. Sales and Market Trends - In 2024, the company experienced a 6% increase in product sales volume compared to the previous year, despite a decline in total sales revenue and profit due to reduced product prices[10]. - The demand for kerosene (including aviation kerosene) in China is expected to grow by nearly 14% year-on-year in 2024, indicating significant potential in this market[17]. - China's refining capacity is projected to reach approximately 980 million tons annually by 2028, with an average scale of refining enterprises expected to increase further[17]. - The company anticipates that the refining and petrochemical industry will remain a pillar of the global economy, despite increasing trade protectionism and economic uncertainties[11]. - The rapid development of electric vehicles in China is expected to impact the demand growth for the company's main products, refining additives, and oil additives[79]. - The trend of "reducing oil and increasing chemicals" in the domestic refining industry may adversely affect the demand for the company's main products[80]. Research and Development - The company achieved significant milestones in R&D, including the acquisition of 7 new national invention patents and successful trials of its first ethylene additive product[10]. - The company is committed to developing new additives and agents that help refining enterprises improve efficiency and reduce emissions, in collaboration with research institutions and universities[13]. - The company successfully completed trials of its first ethylene additive product at a customer's ethylene facility in 2024, marking a significant step in the development and production of ethylene additives and agents[23]. - The company participated in drafting two industry standards for green procurement evaluation requirements, which have been approved and published by the China Association for Standardization (CAS)[10]. - The company plans to explore the production of additives for non-refining industries using high-purity oleic acid production facilities and technology[85]. Operational Strategy - The company plans to continue its low-margin strategy to attract more customers and expand market reach through partnerships with domestic and international traders[13]. - The company is actively diversifying its products and business to adapt to domestic policy directions and seek better development opportunities[20]. - The company aims to expand market share by diversifying customer base and increasing sales channels, including collaboration with multinational chemical companies[30]. - The company has slowed the planned use of net proceeds from its IPO to mitigate the risk of overcapacity and optimize the expected use of funds[75]. - The company is considering the unstable geopolitical situation as a factor in delaying the use of remaining IPO proceeds[84]. Governance and Management - The company has appointed independent non-executive directors with extensive backgrounds in finance and law, enhancing governance and strategic oversight[100][104]. - The company has established a solid foundation for future growth through strategic appointments and a focus on market expansion[98][102]. - The financial department is led by a manager with over 25 years of financial accounting experience, ensuring robust financial oversight[105]. - The company has a comprehensive governance structure with experienced directors overseeing strategic development and financial management[98][100]. - The chairman and CEO roles are held by the same individual, which the board believes aligns with the company's strategic execution[200]. Risks and Challenges - The company acknowledges the ongoing challenges posed by geopolitical tensions and military conflicts affecting global economic conditions and demand[10]. - The company faces liquidity and credit risks due to potential defaults by counterparties, which could negatively impact revenue and profitability[183]. - Ongoing regional conflicts and trade wars may lead to significant fluctuations in raw material prices, affecting financial performance[184]. - The company has faced challenges in expanding production facilities due to increased regulatory scrutiny following a major chemical explosion in Jiangsu Province, which resulted in 78 fatalities and over 600 injuries[85]. Shareholder Information - The company has no treasury shares as of December 31, 2024, and the total number of shares that can be issued under the stock option plan is capped at 48,000,000 shares, equivalent to 10% of the issued share capital[118][125]. - The stock option plan was adopted on March 11, 2018, and is valid for ten years, expiring on March 10, 2028[122]. - The company has proposed a final dividend of HKD 0.01 per share for the year ending December 31, 2024, compared to HKD 0.02 per share for the year ending December 31, 2023[191]. - The total revenue contribution from the largest customer accounted for approximately 6.02% of total revenue, while the top five customers contributed 26%[126]. - The procurement from the largest supplier represented 26% of total purchases, and the top five suppliers accounted for 64% of total purchases[129].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of RMB 182,200,000, a decrease of 2.3% compared to RMB 186,071,000 in 2023[4] - Gross profit for the year was RMB 41,254,000, down 15.3% from RMB 48,696,000 in the previous year[4] - The operating profit decreased to RMB 17,471,000, representing a decline of 30.7% from RMB 25,205,000 in 2023[4] - Net profit for the year was RMB 13,982,000, a decrease of 33.6% compared to RMB 21,121,000 in the prior year[4] - Basic and diluted earnings per share were RMB 2.91, down from RMB 4.40 in 2023, reflecting a decline of 33.9%[4] - The company reported a total comprehensive income of RMB 14,915,000, down from RMB 21,958,000 in 2023, indicating a decline of 32.0%[5] - Pre-tax profit for 2024 was RMB 17,466,000, a decrease from RMB 25,192,000 in 2023, representing a decline of about 30.8%[25] - The group recorded total revenue of approximately RMB 182.2 million in 2024, a decrease of about 2.1% compared to the previous year, and net profit of approximately RMB 14.0 million, down about 33.8% year-on-year[46] Assets and Liabilities - Total assets increased to RMB 235,107,000 from RMB 216,749,000, marking an increase of 8.4%[6] - Trade and other receivables rose significantly to RMB 104,626,000, up 26.2% from RMB 82,907,000 in the previous year[6] - The company’s net asset value increased to RMB 231,957,000 from RMB 225,753,000, reflecting a growth of 2.0%[6] - Trade receivables (net of impairment) increased to RMB 95,973,000 in 2024 from RMB 62,313,000 in 2023, representing a growth of 54%[31] - The company reported a total asset value of RMB 96,262,000 as of December 31, 2024, up from RMB 91,599,000 as of January 1, 2024, indicating an increase of 5.5%[30] - The company’s total liabilities increased, with trade and other payables reaching RMB 37,356,000 in 2024, compared to RMB 24,469,000 in 2023, an increase of 52.7%[34] Revenue Breakdown - Revenue from sales of refining additives for 2024 was RMB 123,319,000, an increase from RMB 111,571,000 in 2023, representing a growth of approximately 10.7%[13] - Revenue from sales of oil additives decreased to RMB 58,881,000 in 2024 from RMB 74,500,000 in 2023, a decline of about 21%[13] - The majority of non-current assets are located in mainland China, with revenue from this region amounting to RMB 180,827,000 in 2024, down from RMB 185,959,000 in 2023, a decrease of about 2.3%[16] Expenses and Costs - Research and development expenses were RMB 7,416,000, a decrease of 13.2% from RMB 8,545,000 in the previous year[4] - Other income for 2024 totaled RMB 6,002,000, down from RMB 9,312,000 in 2023, indicating a decline of approximately 35.5%[20] - Sales cost rose from RMB 137.4 million to RMB 140.9 million, with refining additives' cost increasing significantly due to higher raw material prices[60] - Operating profit decreased from RMB 25.2 million to RMB 17.5 million, primarily due to a decline in average selling prices[61] - Gross profit fell from RMB 48.7 million to RMB 41.3 million, with gross margin decreasing from 26.2% to 22.6%[62] Corporate Actions and Future Outlook - The company plans to pay a final dividend of RMB 0.01 per share for 2024, down from RMB 0.02 per share in 2023[36] - The company expects to benefit from a reduced corporate tax rate of 15% for Jiangsu Innovation Petrochemical Co., Ltd. for the period from 2023 to 2025 due to its high-tech enterprise status[26] - The company is focused on developing and marketing refining additives and oil products that comply with evolving regulatory requirements, particularly in light of the new China National VI emission standards implemented in July 2023[41] - The company aims to promote advanced clean production technologies and explore green low-carbon development paths to ensure long-term sustainability[57] - The company plans to explore the production of additives and agents for non-refining industries, leveraging its high-purity oleic acid production facilities and technology[98] Regulatory and Market Environment - The rapid development of new energy vehicles in China is expected to impact the demand growth for the company's main products, such as refining additives and oil products[94] - The trend of "reducing oil and increasing chemical production" in the domestic refining industry may adversely affect the demand for the company's key products[95] - The company has faced challenges in expanding production facilities due to stricter regulatory approvals following a major chemical explosion in Jiangsu Province, which resulted in 78 fatalities and over 600 injuries[98] Employee and Governance - The company has 64 employees as of December 31, 2024, an increase from 58 employees in 2023, all located in China[103] - The audit committee has reviewed and confirmed the company's accounting principles and financial reporting for the year ending December 31, 2024[113] - The auditor, KPMG, confirmed that there are no discrepancies between the audited financial statements and the preliminary results announcement for the year ending December 31, 2024[114]

Financial Performance - The company reported a significant increase in revenue, achieving a total of 500 million RMB for the first half of 2024, representing a 20% growth compared to the same period last year[1]. - In the first half of 2024, the company's total revenue was approximately RMB 691 million, representing a year-on-year decline of about 30.8%[10]. - The total net profit for the first half of 2024 decreased to approximately RMB 69 million, with a year-on-year decline of about 36.8%[10]. - Revenue for the six months ended June 30, 2024, was RMB 69,137 thousand, a decrease of 30.9% compared to RMB 99,895 thousand for the same period in 2023[54]. - Gross profit for the same period was RMB 19,032 thousand, down 25% from RMB 25,307 thousand year-over-year[54]. - Operating profit decreased to RMB 8,683 thousand, a decline of 34.5% from RMB 13,298 thousand in the previous year[54]. - Net profit for the period was RMB 6,870 thousand, representing a 36.5% decrease from RMB 10,878 thousand in the prior year[54]. - Basic and diluted earnings per share were RMB 1.43, down from RMB 2.27 in the same period last year[54]. - Total comprehensive income for the period was RMB 7,219 thousand, compared to RMB 15,696 thousand in the previous year, reflecting a decrease of 54%[55]. Market and Product Development - User data indicates a 15% increase in active users, reaching 1.2 million by the end of June 2024[1]. - The company provided a positive outlook for the second half of 2024, projecting a revenue growth of 25% year-over-year[1]. - New product development includes the launch of an advanced refining additive, expected to enhance performance and reduce emissions, with an anticipated market introduction in Q4 2024[1]. - The company aims to diversify its products and business to adapt to domestic policy directions and enhance development opportunities[9]. - The company is focusing on research and development of new products in response to the refining industry's trend of "reducing oil and increasing chemicals"[13]. Operational Efficiency and Investments - The company has established a new production facility in Yixing, which is expected to enhance operational efficiency and reduce logistics costs[1]. - The company plans to invest 50 million RMB in R&D for new technologies aimed at meeting evolving regulatory requirements[1]. - The company plans to enhance production efficiency and product quality through the new distributed control system (DCS) and pursue government support for "specialized and innovative small and medium enterprises"[13]. - The company has completed partial investments in upgrading its Yixing factory and producing high-purity oleic acid, which is essential for its main product, anti-wear agents[38]. - The total acquisition of property, plant, and equipment for the six months ended June 30, 2024, was RMB 4,597,000, significantly higher than RMB 161,000 for the same period in 2023[74]. Strategic Initiatives - The company is expanding its market presence in Southeast Asia, targeting a 10% market share by the end of 2025[1]. - A strategic acquisition of a local competitor is in progress, which is expected to increase production capacity by 30%[1]. - The company has established long-term relationships with major private refining enterprises and expanded its sales channels through cooperation with international and domestic traders[10]. - The company aims to diversify its customer base and sales channels, actively seeking potential foreign clients to increase export opportunities[13]. Environmental and Regulatory Compliance - The company has been recognized as a "Jiangsu Province Green Factory" and is applying for national-level recognition as a "Specialized, Refined, Characteristic, and Innovative Small and Medium-sized Enterprise" in 2024[12]. - The company has improved its environmental management level and added online monitoring systems for waste gas and wastewater[11]. - Following a major chemical explosion in Jiangsu in March 2019, regulatory approvals for new chemical product production and plant expansions have become more conservative, posing challenges for the company[38]. Financial Position and Cash Flow - The company maintained cash and cash equivalents of RMB 98.9 million as of June 30, 2024, a slight increase of 3.9% from RMB 95.2 million at the end of 2023[21]. - The company reported a foreign exchange gain of RMB 751 thousand for the period, compared to a gain of RMB 2,892 thousand in the previous year[55]. - Operating cash generated from activities decreased to RMB 17,857 thousand in 2024 from RMB 27,269 thousand in 2023, representing a decline of 34.5%[61]. - The total cash and cash equivalents as of June 30, 2024, were RMB 98,894 thousand, down from RMB 163,580 thousand in 2023, a decrease of 39.5%[61]. Corporate Governance - The company has complied with the Corporate Governance Code, except for the provision that the roles of chairman and CEO should be separate, which is currently not the case[48]. - The company has adopted the Standard Code for the conduct of securities trading by directors, and all directors confirmed compliance during the reporting period[49]. - The independent review of the interim financial report was conducted in accordance with the relevant standards, with no audit opinion expressed[51]. - The company has maintained a high level of corporate governance to protect shareholder interests and enhance corporate value[48]. Shareholder Information - The board has approved a dividend payout of 0.05 HKD per share, reflecting confidence in the company's financial health[1]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with no dividend declared for the same period in 2023[83]. - As of June 30, 2024, Innovative Green Holdings, wholly owned by Ms. Gu, holds 360,000,000 shares, representing 75% of the total issued shares of 480,000,000[46]. - The company’s stock option plan allows for the issuance of up to 48 million shares, representing 10% of the issued share capital as of the report date[43].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 69,137,000, a decrease of 30.9% compared to RMB 99,895,000 for the same period in 2023[2] - Gross profit for the same period was RMB 19,032,000, down 25% from RMB 25,307,000 year-on-year[2] - Operating profit decreased to RMB 8,683,000, a decline of 34.5% from RMB 13,298,000 in the previous year[2] - Net profit for the period was RMB 6,870,000, representing a 36.5% decrease from RMB 10,878,000 in the prior year[2] - Basic and diluted earnings per share were RMB 1.43, down from RMB 2.27 in the same period last year[2] - Total comprehensive income for the period was RMB 7,219,000, compared to RMB 15,696,000 in the same period last year[3] - In the first half of 2024, the company's total revenue decreased to approximately RMB 691 million, a decline of about 30.8% year-on-year[27] - The total net profit for the first half of 2024 fell to approximately RMB 69 million, representing a year-on-year decrease of about 36.8%[27] Sales Performance - Sales of refining additives amounted to RMB 43,999,000, a decrease of 21.3% from RMB 55,861,000 in 2023[7] - Sales of oil additives were RMB 25,138,000, down 43% from RMB 44,034,000 in the previous year[7] - Revenue from mainland China was RMB 67,765,000, down 32.2% from RMB 99,783,000 in the previous year[9] - Sales of refining additives dropped from RMB 55.9 million to RMB 44.0 million, while oil additives fell from RMB 44.0 million to RMB 25.1 million due to maintenance shutdowns at major domestic clients' refining facilities[32] Cash Flow and Liabilities - Cash and cash equivalents increased to RMB 98,894,000 from RMB 95,204,000 at the end of 2023[4] - Current liabilities decreased to RMB 201,468,000 from RMB 216,749,000 at the end of 2023[4] - Trade receivables net amount was RMB 66,032,000, a decrease of 20.5% from RMB 82,907,000 at the end of 2023[19] - Total trade and other payables amounted to RMB 15,460,000, down 36.8% from RMB 24,469,000 at the end of 2023[22] - Trade and other receivables decreased from RMB 82.9 million as of December 31, 2023, to RMB 66.0 million as of June 30, 2024, primarily due to a reduction in total sales[41] - Trade and other payables decreased from RMB 24.5 million as of December 31, 2023, to RMB 15.5 million as of June 30, 2024, due to accelerated settlement and payment processes[43] - The company's debt-to-asset ratio remained at zero as there were no borrowings as of both December 31, 2023, and June 30, 2024[44] Research and Development - Research and development expenses (excluding depreciation) were RMB 3,261,000, down 18.6% from RMB 4,008,000 in the previous year[11] - The company successfully obtained two invention patents in January and February 2024, and submitted nine new patent applications currently under review[27] - Research and development will focus on new products in refining agents and additives, collaborating with research institutions to produce high-end fine chemicals[31] Capital Expenditures and Investments - The company acquired property, plant, and equipment for RMB 4,597,000 during the six months ended June 30, 2024, significantly higher than RMB 161,000 in the same period last year[18] - Capital expenditures during the reporting period amounted to RMB 4.597 million, primarily for the purchase of properties and equipment, compared to RMB 0.161 million in the previous period[45] - The company has not engaged in any significant investments, acquisitions, or disposals during the reporting period[45] Strategic Focus and Market Conditions - The company continues to focus on developing and marketing refinery additives and oil products that reduce harmful emissions and comply with evolving regulatory requirements[24] - The company is accelerating product and business diversification to adapt to domestic policy directions and expand export channels[26] - The demand for aviation fuel in China is expected to reach 38.5 million tons in 2024, a year-on-year increase of 12.5%[25] - China's refining capacity is projected to grow to approximately 980 million tons per year by 2024, with an average scale of refining enterprises further increasing[25] - The rapid development of new energy vehicles in China is expected to impact the demand growth for the company's main products, refining additives and oil additives[47] - The trend of "reducing fuel and increasing chemicals" in the domestic refining industry may adversely affect the demand for the company's main products[48] - The ongoing geopolitical tensions, including the Russia-Ukraine war, have led to increased volatility in the oil industry, affecting the company's operational performance[49] - Regulatory changes following a major chemical accident have posed challenges for the company in expanding production facilities for high-purity oleic acid, a key raw material[50] Corporate Governance and Compliance - The company has complied with the Corporate Governance Code, except for the combined roles of the Chairman and CEO, which the board believes serves the company's interests[54] - The company has a total of 59 employees, all located in China, with compensation aligned with local laws and regulations[53] - The company has no plans to declare an interim dividend for the six months ending June 30, 2024[57] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the previous year[23] Future Plans and Utilization of Proceeds - The company plans to enhance production efficiency and product quality through the new distributed control system (DCS) and pursue government support by applying for "specialized and innovative small and medium enterprises" status[31] - The remaining net proceeds from the listing are expected to be fully utilized within 24 months starting from June 30, 2024[51] - Approximately HKD 42.8 million (39%) of the net proceeds is allocated for upgrading machinery and equipment at the Yixing factory, with HKD 18.6 million already spent[51] - The construction of production facilities for high-purity oleic acid, aimed at producing lubricant additives, is expected to utilize approximately HKD 53.9 million (49%), with HKD 25.6 million already used[51] - General business operations and working capital are allocated approximately HKD 8.8 million (8%), fully utilized as of the reporting date[51]

Financial Performance - The total revenue for the fiscal year 2023 was approximately RMB 186.1 million, despite a decline compared to 2022, but still higher than other fiscal years since the company's listing[12]. - The net profit for fiscal year 2023 was approximately RMB 21.1 million, showing significant growth compared to the previous year due to reduced tax expenses and increased gross margin[12]. - In 2023, the company's total revenue was approximately RMB 186.1 million, a decrease of about 27.7% compared to the previous year[24]. - The company's net profit for 2023 was approximately RMB 21.1 million, an increase of about 84.3% year-on-year due to reduced tax expenses and an increase in gross margin[24]. - Revenue decreased by 27.7% from RMB 257.2 million in 2022 to RMB 186.1 million in 2023[36]. - Revenue from refining additives dropped from RMB 151.1 million in 2022 to RMB 111.6 million in 2023, primarily due to a decrease in new refining installations in China[36]. - Revenue from oil additives decreased from RMB 106.1 million in 2022 to RMB 74.5 million in 2023, attributed to the completion of a large order in 2022[36]. - Other income increased from RMB 4.4 million for the year ended December 31, 2022, to RMB 9.3 million for the year ended December 31, 2023, due to increased interest income from financial assets and more government grants received[47]. - Profit for the year increased by 84.3% from RMB 11.5 million for the year ended December 31, 2022, to RMB 21.1 million for the year ended December 31, 2023, primarily due to a reduction in income tax expenses[54]. Operational Developments - The company completed DCS upgrades and built a central control room to enhance production efficiency and reduce safety and environmental risks[12]. - The company aims to enhance production efficiency and product quality through the implementation of a Distributed Control System (DCS) automation control upgrade[34]. - The company plans to optimize inventory management and reduce raw material costs while leveraging its new DCS system to achieve a 100% first-pass yield[34]. - The company’s production entity will continue to deepen its green development efforts, aiming for higher production and management efficiency[15]. - The company plans to continue developing new products in response to customer needs in refining agents and oil additives, while also exploring the production of high-end fine chemicals and new materials[15]. - The company is exploring the development of new products in response to the refining industry's trend towards "reducing oil and increasing chemicals" and "reducing oil and increasing specialties"[34]. Environmental and Sustainability Initiatives - The company was recognized as a high-tech enterprise and obtained multiple new patents, including two invention patents[13]. - The company’s factory became the first in Yixing to receive the provincial "Green Factory" title, reflecting its commitment to environmental standards[13]. - The company aims to enhance its green development path by promoting clean production technologies and optimizing resource utilization to reduce waste and greenhouse gas emissions[15]. - The company has obtained the title of "Green Factory" and is committed to promoting advanced clean production technologies for sustainable development[34]. Shareholder Returns and Dividends - The board of directors will propose a higher final dividend for the fiscal year 2023 compared to previous years, reflecting a commitment to returning value to shareholders[16]. - The company proposed a final dividend of HKD 0.02 per share for the year ended December 31, 2023, compared to HKD 0.01 per share for the previous year[189]. - The total distributable reserves available for shareholders as of December 31, 2023, amounted to RMB 89,062,000[141]. Market and Customer Base - The company has expanded its customer base by acquiring new domestic private enterprise clients and international customers despite market challenges[12]. - Total sales to Sinopec, PetroChina, and CNOOC accounted for approximately 71% of total revenue for the year ended December 31, 2023, up from 54% in the previous year[178]. - The company is diversifying its customer base to reduce reliance on state-owned enterprises, which has shown significant results in decreasing customer concentration[178]. Management and Governance - The company has a strong management team with over 25 years of experience in finance and international trade[112][109]. - The board includes independent directors with extensive experience in finance and corporate governance[104][107]. - The company has established a compensation committee to provide recommendations on the overall compensation policy and structure for all directors and senior management[149]. - The company has adhered to the Corporate Governance Code, except for the deviation regarding the roles of the Chairman and CEO, which are held by the same individual[197]. - The company maintains a high level of corporate governance to protect shareholder interests and enhance corporate value and accountability[197]. Financial Position and Ratios - Current assets decreased from RMB 305.9 million as of December 31, 2022, to RMB 216.7 million as of December 31, 2023, mainly due to a reduction in cash and cash equivalents and trade and other receivables[58]. - Trade and other receivables decreased from RMB 119.5 million as of December 31, 2022, to RMB 82.9 million as of December 31, 2023, primarily due to a decrease in trade receivables[61]. - The company maintained a zero debt ratio as of December 31, 2022, and December 31, 2023, as there were no borrowings[70]. - Return on equity increased to 8.0% for the year ended December 31, 2023, up from 3.9% in 2022, primarily due to increased profit[81]. - Return on assets rose to 7.0% for the year ended December 31, 2023, compared to 3.5% in 2022, driven by higher profits[84]. - Current ratio decreased to 7.0 as of December 31, 2023, down from 9.1 in 2022, reflecting a reduction in current assets[85]. - Quick ratio fell to 5.8 as of December 31, 2023, from 8.1 in 2022, also due to a decrease in current assets[86]. Risks and Challenges - Global inflation and regional conflicts continue to pose risks, impacting raw material prices and potentially affecting financial performance[183]. - The company has established a credit policy to monitor credit risks associated with various counterparties, ensuring ongoing assessment of customer situations[180]. - The board has confirmed that there are no significant legal, arbitration, or administrative proceedings that could adversely affect the company's operations or financial condition[178]. Compliance and Reporting - The consolidated financial statements for the year ending December 31, 2023, have been audited by KPMG, which has served as the company's auditor since its listing[200]. - The audit committee has reviewed and confirmed the accounting principles and practices adopted by the company, with no objections raised regarding the accounting treatments[194]. - The company reported its financial performance for the year ending December 31, 2023, with a comprehensive income statement included in the annual report[120].

Financial Performance - For the fiscal year ending December 31, 2023, the company reported total revenue of RMB 186,071,000, a decrease of 27.6% from RMB 257,183,000 in 2022[4]. - The gross profit for the same period was RMB 48,696,000, down from RMB 53,879,000, reflecting a gross margin of approximately 26.1%[4]. - The operating profit decreased slightly to RMB 25,205,000 from RMB 26,205,000, indicating a decline of 3.8%[4]. - Net profit for the year was RMB 21,121,000, which is a significant increase of 84.5% compared to RMB 11,458,000 in 2022[4][6]. - Basic and diluted earnings per share rose to RMB 4.40, compared to RMB 2.39 in the previous year, marking an increase of 83.3%[4]. - Revenue from mainland China decreased to RMB 185,959,000 in 2023, down 21.7% from RMB 237,562,000 in 2022[17]. - Total revenue from external customers was RMB 186,071,000 in 2023, a decline of 27.6% compared to RMB 257,183,000 in 2022[17]. - Pre-tax profit was RMB 25,192,000 in 2023, a decrease of 3.9% from RMB 26,205,000 in 2022[28]. - Basic earnings per share rose to RMB 21,121,000 in 2023, compared to RMB 11,458,000 in 2022[30]. - Despite the revenue decline, the company's net profit for 2023 was approximately RMB 21.1 million, representing a year-on-year increase of about 84.3%[49]. Assets and Liabilities - The company's total assets decreased to RMB 216,749,000 from RMB 305,939,000, a decline of 29.1%[7]. - Current liabilities also decreased to RMB 31,006,000 from RMB 33,632,000, reflecting a reduction of 7.8%[7]. - Trade receivables (net of impairment) decreased to RMB 62,313,000 in 2023 from RMB 107,521,000 in 2022, indicating a decline of about 42%[33]. - The company reported a total of RMB 24,469,000 in trade and other payables for 2023, down from RMB 28,172,000 in 2022, reflecting a decrease of approximately 13%[35]. - The company's cash and cash equivalents decreased from RMB 146.5 million in 2022 to RMB 95.2 million in 2023, contributing to a total current assets decline from RMB 305.9 million to RMB 216.7 million[78]. - Trade and other receivables decreased from RMB 119.5 million in 2022 to RMB 82.9 million in 2023, primarily due to a reduction in trade receivables[80]. - The company's current liabilities decreased from RMB 33.6 million in 2022 to RMB 31.0 million in 2023, mainly due to a decrease in trade and other payables[78]. Income and Expenses - The company reported a significant increase in other income to RMB 9,312,000 from RMB 4,411,000, representing a growth of 110.5%[4]. - Other income increased to RMB 9,312,000 in 2023, up 111.5% from RMB 4,411,000 in 2022[20]. - Research and development expenses were RMB 5,177,000 in 2023, down 14.4% from RMB 6,046,000 in 2022[25]. - Sales and marketing expenses decreased from RMB 11.8 million in 2022 to RMB 9.2 million in 2023, primarily due to lower freight and bidding service costs[70]. - General and administrative expenses increased from RMB 11.8 million in 2022 to RMB 13.7 million in 2023, mainly due to higher travel, consulting, and greening costs[71]. - The company’s employee costs increased to RMB 8,424,000 in 2023, up 11.6% from RMB 7,548,000 in 2022[21]. - The company reported a net foreign exchange gain of RMB 1,974,000 in 2023, compared to RMB 1,049,000 in 2022[20]. - Deferred tax expenses decreased significantly to RMB 1,350,000 in 2023 from RMB 11,193,000 in 2022[28]. - Net profit rose by 84.3% from RMB 11.5 million in 2022 to RMB 21.1 million in 2023, mainly due to a reduction in income tax expenses[74]. Capital Expenditure and Investments - The capital expenditure for the year ended December 31, 2023, was RMB 7.3 million, an increase from RMB 3.4 million in 2022, aimed at expanding production capacity[88]. - The net proceeds from the share issuance amounted to approximately HKD 110.7 million, with a remaining balance of about HKD 52.5 million as of December 31, 2023[97][99]. - Approximately HKD 42.8 million (39%) of the proceeds is allocated for purchasing new machinery and equipment, while HKD 53.9 million (49%) is designated for building production facilities[99]. - The company plans to utilize the remaining proceeds within 24 months starting from December 31, 2023[99]. - No significant investments, acquisitions, or disposals were made during the year ending December 31, 2023, and no major plans are anticipated in the short term[96]. Corporate Governance and Compliance - The company has adopted a share option scheme to incentivize participants and retain key contributors, effective for ten years from March 11, 2018[100][101]. - The company has complied with the corporate governance code, except for the combined role of the chairman and CEO, which the board believes is in the best interest of the group[103]. - The audit committee has reviewed and confirmed the company's annual performance, with no objections to the accounting treatments adopted[111]. - The annual report for the year ending December 31, 2023, will be published in April 2024, in compliance with listing rules[112]. - The company will suspend share transfer registration from May 20 to May 23, 2024, to determine eligible shareholders for the annual general meeting[110]. - Share transfer registration will also be suspended from May 30 to June 4, 2024, for shareholders entitled to receive the proposed final dividend[110]. Operational Developments - The company was awarded 3 new patents in 2023, with 2 invention patents expected to be granted in January and February 2024[49]. - The company’s Yixing factory was recognized as a "Specialized and Innovative Small and Medium Enterprise" by the provincial government, which will provide more government support in future developments[50]. - The Yixing factory achieved a Level 2 safety production standardization rating in March 2023, indicating higher recognition of safety compliance and management[52]. - The company received the ISO 50001 energy management system certification in June 2023, reflecting improvements in energy management and sustainability efforts[52]. - The company plans to enhance production reliability and efficiency through the implementation of a Distributed Control System (DCS) automation control upgrade[58]. - The company aims to optimize inventory management and reduce raw material costs in response to market competition[58]. - The company will continue to develop new products in response to the refining industry's trend of "reducing oil and increasing chemicals" and explore opportunities in non-refining chemical businesses[58]. - The company intends to strengthen collaboration with international and domestic traders to diversify its customer base and expand market reach[58]. Market Trends and Industry Insights - The total number of million-ton level refining enterprises in China reached 36 by the end of 2023, with nearly 70% becoming integrated refining and chemical enterprises[46]. - China's refining capacity is projected to increase to 936 million tons in 2023, maintaining its position as the world's largest refining country[46]. - The actual crude oil processing volume in China reached a historical high of 738 million tons in 2023, with domestic oil consumption estimated at 756 million tons[46]. - Sales in mainland China dropped from RMB 237.6 million in 2022 to RMB 186.0 million in 2023, primarily due to reduced demand for refinery additives and the absence of large orders for oil additives[62]. - Revenue decreased by 27.7% from RMB 257.2 million in 2022 to RMB 186.1 million in 2023, with refinery additives and oil additives contributing RMB 111.6 million and RMB 74.5 million respectively[60]. Ratios and Margins - The return on equity increased from 3.9% in 2022 to 8.0% in 2023, driven by an increase in profit during the year[92]. - The return on assets rose from 3.5% in 2022 to 7.0% in 2023, reflecting improved profitability[93]. - The current ratio decreased from 9.1 in 2022 to 7.0 in 2023, indicating a reduction in current assets[91]. - The gross profit margin improved from 20.9% in 2022 to 26.2% in 2023, suggesting better cost management[91]. - The net profit margin increased from 4.5% in 2022 to 11.4% in 2023, indicating enhanced profitability[91].