创新浪潮席卷江苏大地，产业升级步伐铿锵有力。今年一季度，全省高新技术产业产值占规上工业 总产值比重达51.4%，数据背后是创新驱动发展战略的持续发力与产业转型的厚积薄发。 从前沿科技企业的创新突破，到全国重点实验室协同集聚；从高新区经济规模在全国挑大梁，到科 技金融"生态圈"持续优化……江苏的科技实力，不仅体现于亮眼的数据，更浸润在一处处充满创造力的 科研场景、一个个引领行业变革的产业实践之中，彰显出我省产业结构深度优化、创新发展动能强劲。 锻造企业创新"硬实力" 今年的广交会眼下正如火如荼进行中，江苏参展规模创下历史新高。此次参展的江苏企业中，有 749家荣获国家高新技术企业、专精特新"小巨人"企业、制造业单项冠军等称号。以苏州穿山甲机器人 为代表的8家服务机器人企业，携人形机器人等前沿产品精彩亮相，展现苏企"智"造风采。 4月25日，首届具身智能机器人运动会在无锡惠山举行。150多台国内当红的人形机器人走进各自比 赛场地，"摩拳擦掌"施展才能。早在去年，无锡就发布未来产业实施意见，将人形机器人作为"新赛 道"纳入"5+X"未来产业发展体系。位于惠山的高新技术企业天奇自动化工程股份有限公司，将具身智 能机器 ...

（ 於開曼群島註冊成立之有限公司 ） 股份代號 : 2116 年 報 2024 目錄 公司 公司資料 2 業務概覽及企業管治 | 主席報告書 | 4 | | --- | --- | | 管理層討論及分析 | 6 | | 董事及高級管理層 | 24 | | 董事會報告 | 29 | | 企業管治報告 | 45 | | 環境、社會及管治報告 | 58 | 財務報告 | 獨立核數師報告 | 121 | | --- | --- | | 綜合損益表 | 127 | | 綜合損益及其他全面收益表 | 128 | | 綜合財務狀況表 | 129 | | 綜合權益變動表 | 131 | | 綜合現金流量表 | 132 | | 綜合財務報表附註 | 133 | 財務業績摘要 財務概要 183 1 江蘇創新環保新材料有限公司 公司資料 董事會 執行董事 葛曉軍先生 （主席兼行政總裁） 顧菊芳女士 黃磊先生 蔣才君先生 范亞強先生 非執行董事 顧耀先生 獨立非執行董事 釋義 184 樊鵬先生 管東濤先生 吳燕女士 董事委員會 審核委員會 管東濤先生（主席） 樊鵬先生 吳燕女士 薪酬委員會 吳燕女士（主席） 管東濤先生 顧菊芳女士 ...

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].

Industry Overview - The company develops, produces, and markets refining additives and oil products that comply with evolving regulatory requirements[9]. - As of the end of 2022, China's refining capacity reached 920 million tons, surpassing the United States to become the world's largest refining country[10]. - The implementation of the National VI emission standards began on July 1, 2023, prohibiting the production, import, and sale of vehicles that do not meet these standards[10]. - By 2025, China's refining capacity is projected to reach 950 million tons, with actual crude processing expected to be around 660 million tons annually[11]. - Gasoline production is estimated at 155 million tons, while apparent consumption is expected to be below 140 million tons, indicating a supply surplus[11]. - Diesel production is projected at approximately 150 million tons, with consumption around 140 million tons, suggesting ongoing oversupply conditions[11]. - Industry experts suggest that refining plants in China should focus on transforming to produce chemical raw materials, indicating a shift in market demand[11]. Company Performance - In the first half of 2023, the company's total revenue was approximately RMB 99.9 million, a decrease of about 11.2% compared to the same period last year[22]. - Revenue from refining additives increased slightly to RMB 55.9 million, while revenue from oil additives decreased significantly to RMB 44.0 million, primarily due to a major customer's change in procurement policy[22]. - Revenue from the mainland China market decreased from RMB 108.2 million to RMB 99.8 million, mainly due to a decline in oil additive sales[23]. - The overseas revenue dropped significantly from RMB 4.3 million to RMB 0.1 million, primarily due to order delays caused by the civil war in Sudan[23]. - Gross profit for the six months ended June 30, 2023, was RMB 25.3 million, an increase from RMB 22.3 million for the same period in 2022, with a gross margin of 25.3% compared to 19.8% in 2022[26]. - Net profit increased by 26.6% to RMB 10.9 million for the six months ended June 30, 2023, compared to RMB 8.6 million for the same period in 2022, primarily driven by increased gross profit[33]. - Total revenue for the six months ended June 30, 2023, was RMB 99,895,000, a decrease of 11.1% compared to RMB 112,447,000 for the same period in 2022[84]. - The profit for the period was RMB 10,878 thousand, an increase of 26.6% from RMB 8,590 thousand in the previous year[96]. Financial Position - Cash and cash equivalents rose by 11.7% from RMB 146.5 million as of December 31, 2022, to RMB 163.6 million as of June 30, 2023[36]. - Total assets as of June 30, 2023, were RMB 317,838,000, slightly up from RMB 313,847,000 at the end of 2022[89]. - The company maintained a strong liquidity position with net current assets of RMB 279,439,000, compared to RMB 272,307,000 at the end of 2022[89]. - The effective tax rate increased from 10.7% in 2022 to 18.1% in 2023, primarily due to provisions for distributable dividend tax[32]. - The company has no external borrowings, and the debt-to-asset ratio remains at zero as of June 30, 2023[42]. - The total equity as of June 30, 2023, was RMB 311,952 thousand, up from RMB 295,887 thousand at the end of June 2022, reflecting a growth of 5.4%[96]. Operational Strategies - The company recognizes the need to accelerate product and business diversification in response to long-term market trends[11]. - The company is committed to addressing the challenges posed by overcapacity and the development of new energy vehicles in the refining sector[11]. - The company plans to enhance production efficiency through the implementation of a Distributed Control System (DCS) automation control transformation[20]. - The company aims to strengthen cost reduction efforts while ensuring product quality and achieving a 100% first-pass yield in manufacturing processes[20]. - The company will continue to diversify its customer base and strengthen cooperation with international and domestic traders to expand its market presence[20]. Research and Development - The company was granted 3 new patents and submitted 5 new patent applications during the first half of 2023, which are currently under review[22]. - Research and development expenses (excluding depreciation) were RMB 4,008,000, down from RMB 4,365,000 in the previous year, a decrease of 8.2%[112]. Corporate Governance - The company has committed to high standards of corporate governance, ensuring shareholder interests are protected and corporate value is enhanced[72]. - The audit committee has reviewed the accounting principles and internal controls without any objections to the accounting treatments adopted by the company[59]. Shareholder Information - Major shareholders, Innovative Green Holdings, hold 360 million shares, representing 75% of the total issued shares of 480 million[68]. - The company has not proposed any interim dividend for the six months ending June 30, 2023[69]. - The interim dividend declared for the previous fiscal year was RMB 4,223 thousand, compared to RMB 3,874 thousand for the same period in 2022, showing an increase of about 9%[133].

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，概不對因本公告全部或任 何部分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。 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） 截至二零二三年六月三十日止六個月 中期業績公告 江蘇創新環保新材料有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈 本公司及其附屬公司（統稱「本集團」、「我們」或「我們的」）截至二零二三年六月 三十日止六個月（「報告期」）的未經審核中期業績（「中期業績」），連同二零二二 年同期的比較數字。中期業績已由本公司董事會及審核委員會（「審核委員會」）審 閱及確認。 ...

Financial Performance - In 2022, the company achieved a total revenue of approximately RMB 257 million, marking the highest record in its history despite challenges from COVID-19 outbreaks[12]. - The total revenue for the year ended December 31, 2022, was approximately RMB 257.2 million, representing a year-on-year increase of about 45%, marking the highest record in the company's history[28]. - Revenue increased by 45.0% from RMB 177.3 million in 2021 to RMB 257.2 million in 2022[40]. - The total net profit for the same period was approximately RMB 11.46 million, showing a slight year-on-year decrease of about 1.7% due to the recognition of a 10% withholding tax as deferred income tax liabilities[28]. - Net profit slightly decreased by 1.7% from RMB 11.7 million in 2021 to RMB 11.5 million in 2022[60]. - Gross profit increased from RMB 36.5 million in 2021 to RMB 53.9 million in 2022, with a gross margin of 20.9%[50]. - Operating profit rose from RMB 12.9 million in 2021 to RMB 26.2 million in 2022, primarily due to increased product sales[49]. - Income tax expenses rose significantly from RMB 1.24 million in 2021 to RMB 14.75 million in 2022, with an effective tax rate increase from 9.6% to 56.3%[59]. Sales and Market Development - The company plans to strengthen sales efforts and expand sales channels in 2023, focusing on collaboration with traders and multinational companies[17]. - Revenue from refining additives rose from RMB 92.5 million in 2021 to RMB 151.1 million in 2022, driven by increased sales efforts[43]. - Revenue from oil additives increased from RMB 84.9 million in 2021 to RMB 106.1 million in 2022, also due to enhanced sales efforts[43]. - Revenue from the Chinese market grew from RMB 170.8 million in 2021 to RMB 237.6 million in 2022, attributed to increased domestic user numbers[44]. - Overseas revenue increased from RMB 6.6 million in 2021 to RMB 19.6 million in 2022, mainly due to higher procurement by a major Sudanese customer[44]. - The company has successfully participated in procurement tenders from major clients, including Sinopec and PetroChina, leading to significant growth in total product sales[28]. - Total sales to Sinopec, PetroChina, and CNOOC accounted for approximately 54% of total revenue for the year ended December 31, 2022, down from 65% in the previous year[176]. Research and Development - The company successfully obtained 11 new patent authorizations in 2022, enhancing its technological capabilities and product offerings[13]. - The company successfully obtained 11 new patents in 2022, and several products were recognized as high-tech products by relevant government departments[31]. - R&D expenses increased from RMB 7.7 million for the year ended December 31, 2021, to RMB 8.9 million for the year ended December 31, 2022[56]. - The company is primarily focused on research and development in the refining additives and oil products sector, with key personnel having approximately 30 years of experience in the industry[97]. Operational Improvements - The company’s laboratory received CNAS certification in March 2022, improving its product testing credibility and competitive advantage in procurement bids[13]. - The company’s laboratory received CNAS certification in March 2022, enhancing customer trust in product testing capabilities and quality assurance[31]. - The company’s Yixing factory passed the second-level safety production standardization assessment in March 2023, indicating improved safety management standards[14]. - The company achieved a significant breakthrough in safety production standardization at its Yixing factory, passing the second-level safety production standardization assessment in March 2023[31]. - The company aims to enhance cost efficiency and reduce material costs while achieving a 100% first-pass yield[37]. Environmental, Social, and Governance (ESG) Initiatives - The company aims to reduce energy consumption and emissions through enhanced management practices as part of its ESG initiatives[16]. - The company has a structured approach to environmental, social, and governance (ESG) initiatives, led by a dedicated team member[97]. - The company has strict adherence to environmental, social, and governance reporting guidelines as per the listing rules[122]. Financial Position and Assets - Current assets increased from RMB 271.6 million as of December 31, 2021, to RMB 305.9 million as of December 31, 2022, primarily due to an increase in trade and other receivables[64]. - Trade and other receivables rose from RMB 78.4 million in 2021 to RMB 119.5 million in 2022, with trade receivables (net of impairment) increasing from RMB 61.7 million to RMB 107.5 million[67]. - Trade and other payables increased from RMB 20.6 million in 2021 to RMB 28.2 million in 2022, mainly due to an increase in other payables and accrued expenses[71]. - The company maintained a zero debt-to-asset ratio as of December 31, 2021, and December 31, 2022[75]. - The company has no off-balance-sheet arrangements or pledged assets as of December 31, 2022[78]. Management and Governance - The company has a significant controlling shareholder, Innovative Green Holdings, which holds a 75% equity stake, indicating strong backing for strategic initiatives[97]. - The management team includes independent directors with extensive backgrounds in finance and law, enhancing corporate governance and strategic oversight[102][108]. - The financial department is led by a manager with 25 years of accounting experience, ensuring robust financial oversight and management[109]. - The company has established a remuneration committee to review and recommend compensation policies for directors and senior management[150]. - All independent non-executive directors confirmed their independence in accordance with the listing rules[143]. Future Outlook and Strategy - The company plans to diversify its product offerings and invest in new product development to adapt to the changing market demands due to the rise of new energy vehicles[27]. - The company plans to closely monitor international political and economic conditions to assess industry and market trends for future investments[88]. - The company is positioned for market expansion, leveraging the experience of its sales team to penetrate new markets effectively[98]. Shareholder Information - The total reserves available for distribution to shareholders as of December 31, 2022, amounted to RMB 81,279,000[142]. - The board has proposed a final dividend of HKD 0.01 per share for the year ended December 31, 2022, consistent with the previous year's dividend[187]. - The company has maintained a minimum public float of 25% throughout the reporting period, in compliance with listing rules[197]. - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[130].