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依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） 截至二零二二年十二月三十一日止年度 年度業績公告 江蘇創新環保新材料有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈 本公司及其附屬公司（統稱「本集團」、「我們」或「我們的」）截至二零二二年十二 月三十一日止年度（「報告期」）的經審核年度業績（「年度業績」），連同二零二一 年同期的比較數字。本公司董事會及審核委員會（「審核委員會」）已審閱及確認年 度業績。 ...

Industry Trends and Regulatory Environment - The company develops, produces, and markets refining additives and oil products that reduce harmful emissions and comply with evolving regulatory requirements[27]. - In 2021, China's crude oil processing volume exceeded 700 million tons for the first time, representing a growth of approximately 4.3% compared to 2020 and 7.4% compared to 2019[28]. - By the end of 2025, China's refining capacity is expected to reach 980 million tons, potentially making it the world's largest refining country[28]. - The implementation of the National VI B standard for vehicle gasoline will be fully enforced starting July 1, 2023, with many provinces already adopting stricter standards[28]. - In the first half of 2022, China's total crude oil processing volume slightly decreased compared to the same period last year due to a rebound in COVID-19 cases, leading to reduced demand for various fuel oils[28]. Financial Performance - Total revenue for the six months ended June 30, 2022, was RMB 112.4 million, an increase of approximately 33% compared to RMB 84.4 million for the same period in 2021[31]. - Gross profit for the same period increased to RMB 8.6 million, up about 6.5% from RMB 8.1 million in the previous year[31]. - Revenue from oil additives increased significantly from RMB 32.1 million to RMB 59.8 million due to enhanced sales efforts[39]. - Revenue from refining additives remained stable, with a slight increase from RMB 52.4 million to RMB 52.7 million[39]. - Revenue from mainland China increased from RMB 80.1 million to RMB 108.2 million, representing a growth of 35%[40]. - Total revenue rose from RMB 84.4 million to RMB 112.4 million, an increase of 33%[40]. - Sales cost increased from RMB 63.3 million to RMB 90.2 million, a rise of 42.5%[42]. - Gross profit increased from RMB 21.2 million to RMB 22.3 million, with a gross margin of 25.1% in the previous period and 19.8% in the current period[46]. - Profit for the period increased by 6.5% from RMB 8.1 million to RMB 8.6 million, primarily due to higher gross profit[50]. - Basic and diluted earnings per share for the period were RMB 1.79, compared to RMB 1.68 in the prior year[97]. - Net profit for the six months ended June 30, 2022, was RMB 8,590,000, up from RMB 8,068,000 in the previous year, indicating a year-over-year growth of 6.5%[97]. - Total comprehensive income for the period was RMB 10,269,000, up 36.0% from RMB 7,558,000 in the previous year[100]. Research and Development - The company successfully obtained 5 new utility model patents during the reporting period, enhancing its R&D capabilities[32]. - Research and development expenses increased to RMB 4,959,000 from RMB 3,818,000, representing a 29.8% increase year-over-year[97]. - Research and development expenses (excluding depreciation) increased to RMB 4,365,000 from RMB 3,213,000, reflecting a focus on innovation[139]. Operational Strategies - Future strategies include optimizing procurement management and dynamically adjusting raw material inventory based on price trends[36]. - The company plans to strengthen sales efforts and diversify customer bases, leveraging the new CNAS lab certification to participate in more procurement tenders[36]. - The company aims to expand its product range and functionality in response to the refining industry's trend towards "refining integration" and "reduction of fuel and increase of chemicals"[36]. Assets and Liabilities - Trade and other receivables increased from RMB 78.4 million to RMB 84.9 million, attributed to higher sales[54]. - Trade and other payables increased from RMB 20.6 million to RMB 27.4 million, mainly due to increased trade payables for raw materials[58]. - Capital expenditure for the period was RMB 3.1 million, significantly higher than RMB 0.013 million in the previous period[61]. - The company reported no significant investments, acquisitions, or disposals during the period[65]. - The company has no assets pledged as of June 30, 2022[66]. - Inventory increased significantly to RMB 55,702,000, a rise of 53.5% from RMB 36,269,000 as of December 31, 2021[104]. - Trade and other receivables, net of impairment, amounted to RMB 68,467,000 as of June 30, 2022, an increase of 10.3% from RMB 61,665,000 at the end of 2021[151]. - Total trade payables increased to RMB 15,502,000 as of June 30, 2022, compared to RMB 9,223,000 at the end of 2021, reflecting a 68.0% increase[156]. Corporate Governance and Compliance - The company has adopted a corporate governance code and has complied with its provisions, except for a deviation regarding the roles of the chairman and CEO[87]. - The company has confirmed compliance with the standard code of conduct for securities trading by all directors during the reporting period[89]. - The company’s audit committee has reviewed and discussed the accounting principles and practices adopted, with no objections raised regarding the accounting treatments[73]. Market Conditions and Risks - The company is closely monitoring the impact of the COVID-19 pandemic, which may affect consumer behavior in certain regions of China[84]. - The company plans to closely monitor international political and economic conditions to assess market trends and adjust investment strategies accordingly[68]. - The company has not experienced significant negative impacts from foreign exchange fluctuations during the reporting period, and no forward foreign exchange contracts or hedging contracts were signed[67]. Employee and Compensation - The company has a total of 58 employees as of June 30, 2022, all located in China, with compensation aligned with local laws and regulations[71]. - Short-term employee benefits for key management personnel were RMB 816,000 for the six months ended June 30, 2022, slightly up from RMB 814,000 in the same period of 2021[162]. Dividends - The board of directors did not recommend any interim dividend during the reporting period[83]. - The company did not declare an interim dividend for the six months ended June 30, 2022, consistent with the same period in 2021[159]. - The company reported a total of RMB 3,874,000 in dividends payable for the last fiscal year's final dividend, compared to RMB 4,026,000 for the same period in 2021[160].

（於開曼群島註冊成立之有限公司） 股份代號 : 2116 2021 年報 目錄 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 22 董事會報告 26 企業管治報告 41 環境、社會及管治報告 53 財務報告 獨立核數師報告 84 綜合損益表 90 綜合損益及其他全面收益表 91 綜合財務狀況表 92 綜合權益變動表 94 綜合現金流量表 95 財務報表附註 96 財務業績摘要 財務概要 149 釋義 150 公司 1 江蘇創新環保新材料有限公司 公司資料 董事 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 樊鵬先生 管東濤先生 吳燕女士 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 提名委員會 葛曉軍先生（主席） 吳燕女士 管東濤先生 聯席公司秘書 談前先生 黃儒傑先生 授權代表 葛曉軍先生 黃儒傑先生 開曼群島登記地址 Cricket Square Hutchins Drive P.O. Box 2681 Grand Cayman K ...

（於開曼群島註冊成立之有限公司） 股份代號 : 2116 2021 中期報告 目錄 釋義2 公司資料4 管理層討論及分析6 其他資料 18 獨立審閱報告 22 綜合損益表 23 綜合損益及其他收入表 24 綜合財務狀況表 25 綜合權益變動表 27 簡明綜合現金流量表 29 未經審核中期財務報表附註 30 釋義 在本報告中，除文義另有所指外，以下詞語具有以下涵義。 「董事會」 本公司董事會 「中國」、「中國大陸」或 「中華人民共和國」 中華人民共和國，為本中期報告僅供地理參考之用，除文意所述外，本中 期報告中提及的「中國」及「中華人民共和國」不適用於臺灣、澳門特別行 政區及香港 「本公司」 江蘇創新環保新材料有限公司，一間於二零一七年七月六日在開曼群島 註冊成立為獲豁免有限責任公司的公司，股份於主板上市（股票代碼： 2116） 「董事」 本公司董事 「歐元」 歐盟成員國法定貨幣歐元 「本集團」、「我們」或「我們的」 本公司及其附屬公司 「香港會計準則」 香港會計準則 「香港」 中華人民共和國香港特別行政區 「港元」 香港法定貨幣港元 「香港聯交所」或「聯交所」 香港聯合交易所有限公司 「Innovative ...

（於開曼群島註冊成立之有限公司） 股份代號 : 2116 2020 年報 目錄 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 22 董事會報告 27 企業管治報告 42 環境、社會及管治報告 54 財務報告 獨立核數師報告 71 綜合損益表 77 綜合損益及其他全面收益表 78 綜合財務狀況表 79 綜合權益變動表 81 綜合現金流量表 82 財務報表附註 83 財務業績摘要 財務概要 135 釋義 136 公司 公司資料 董事 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 授權代表 葛曉軍先生 黃儒傑先生 開曼群島登記地址 Cricket Square Hutchins Drive P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands | --- | --- | |---------------------|-------------------------------------------------| | | | | | 中國主要營業地點及總部 | | 獨 ...

Company Overview - The company develops, produces, and markets refining additives and oil additives aimed at reducing harmful emissions and complying with evolving regulatory requirements[26]. Market Conditions - The implementation of the National VI gasoline standards in China has begun, with the A standard effective from July 1, 2020, and the B standard set to take effect on July 1, 2023, promoting the production and consumption of high-quality fuel[28]. - Sales and profits of the company's refining additives and oil additives were negatively impacted during the reporting period due to COVID-19 travel restrictions and reduced consumption in China[28]. Financial Performance - Total revenue for the six months ended June 30, 2020, was RMB 73.4 million, a decrease of 10.6% from RMB 82.1 million for the same period in 2019[36]. - Revenue from refining additives decreased from RMB 47.6 million in the first half of 2019 to RMB 42.1 million in 2020, primarily due to reduced demand caused by the COVID-19 pandemic[37]. - Revenue from oil additives fell from RMB 34.5 million in the first half of 2019 to RMB 31.3 million in 2020, also impacted by the pandemic[37]. - Revenue from the mainland China market decreased from RMB 80.5 million in the first half of 2019 to RMB 66.0 million in 2020, attributed to reduced fuel consumption due to travel restrictions[40]. - Overseas revenue increased from RMB 1.6 million in the first half of 2019 to RMB 7.4 million in 2020, mainly due to increased shipments to a major customer in Sudan[40]. - Gross profit for the six months ended June 30, 2020, was RMB 23.9 million, a decrease of 15.4% from RMB 28.2 million for the same period in 2019, with a gross margin of 32.6% compared to 34.3% in 2019[45]. - Profit for the six months ended June 30, 2020, decreased by 19.9% to RMB 11.4 million from RMB 14.3 million in the same period of 2019, mainly due to reduced gross profit and increased tax expenses[49]. Cost Management - Sales costs decreased from RMB 53.9 million in the first half of 2019 to RMB 49.5 million in 2020, reflecting lower sales volume and raw material costs for refining additives[41]. - The gross profit from oil additives decreased by 31.9% from RMB 14.2 million in 2019 to RMB 9.7 million in 2020, with the gross margin dropping from 41.2% to 30.9% due to reduced sales volume and increased costs[45]. Research and Development - The company plans to continue developing new products, including a new series of automotive fuel additives, despite temporary market challenges due to the pandemic[33]. - Research and development expenses (excluding depreciation) amounted to RMB 2,610,000, a decrease of 23.5% from RMB 3,412,000 in 2019[142]. Investments and Capital Expenditures - Capital expenditures for the six months ended June 30, 2020, amounted to RMB 2.1 million, a significant decrease from RMB 10.7 million in 2019, focused on capacity upgrades and oleic acid projects[60]. - Investment in upgrading the Yixing factory and producing high-purity oleic acid has only partially completed, with approximately HKD 42.8 million (39%) allocated for factory upgrades and HKD 53.9 million (49%) for production equipment[69]. Shareholder Information - Major shareholders, Innovative Green Holdings, hold 360 million shares, representing 75% of the total shares[84]. - The company has established a share option scheme approved on March 11, 2018, aimed at incentivizing participants for their contributions[73]. - No share options have been granted, exercised, canceled, or lapsed under the share option scheme as of June 30, 2020[74]. Cash Flow and Liquidity - Cash and cash equivalents remained stable at RMB 146,954,000, compared to RMB 146,693,000 at the end of 2019[106]. - Net cash generated from operating activities for the six months ended June 30, 2020, was RMB 4,171,000, a decrease of 81.8% compared to RMB 22,981,000 for the same period in 2019[125]. - The company’s cash flow from investing activities showed a net cash outflow of RMB 455,000 for the six months ended June 30, 2020, compared to RMB 11,214,000 in the same period of 2019[125]. Employee Information - The company has a total of 69 employees as of June 30, 2020, all located in China, with compensation compliant with local laws and regulations[70]. - Short-term employee benefits for key management personnel were RMB 759,000 for the six months ended June 30, 2020, a decrease of 4.9% from RMB 798,000 in the same period of 2019[172]. Corporate Governance - The company adhered to the corporate governance code, with a noted exception regarding the roles of the Chairman and CEO being held by the same individual[89]. Other Financial Metrics - Total assets as of June 30, 2020, were RMB 253,961,000, an increase from RMB 248,131,000 at the end of 2019[106]. - Total equity as of June 30, 2020, increased to RMB 276,701,000 from RMB 268,536,000 as of January 1, 2020, reflecting a growth of approximately 3.5%[121]. - The company reported a total comprehensive income of RMB 12,495,000 for the six months ended June 30, 2020, compared to RMB 14,426,000 for the same period in 2019, indicating a decline of approximately 13.4%[121].

Financial Performance - For the fiscal year ending December 31, 2019, the company recorded revenue of approximately RMB 175.8 million and a net profit of approximately RMB 26.9 million, with net profit showing significant growth compared to the previous year due to increased gross margins and reduced professional service fees related to the listing[43]. - Total revenue for the year ended December 31, 2019, was RMB 175.8 million, a decrease of 0.7% from RMB 177.1 million for the year ended December 31, 2018[55][64]. - Revenue from refining additives increased from RMB 104.2 million in 2018 to RMB 113.8 million in 2019, primarily due to the recovery of refining additive usage after maintenance by certain customers[64]. - Revenue from oil additives decreased from RMB 72.9 million in 2018 to RMB 62.0 million in 2019, mainly due to a decline in sales volume of a specific octane booster product[64]. - Operating profit increased from RMB 26.3 million in 2018 to RMB 34.4 million in 2019, driven by an increase in gross profit from refining additives[71]. - Gross profit rose from RMB 53.2 million in 2018 to RMB 60.2 million in 2019, with a gross margin improvement from 30.0% to 34.3%[71]. - Net profit increased by 17% from RMB 23.0 million in 2018 to RMB 26.9 million in 2019, mainly due to higher gross profit and reduced professional service fees related to the listing[81]. - Other income decreased from RMB 6.0 million in 2018 to RMB 3.1 million in 2019, mainly due to a reduction in government listing subsidies[74]. - Selling and marketing expenses increased from RMB 7.6 million in 2018 to RMB 9.0 million in 2019, attributed to higher service fees and advertising costs[75]. - General and administrative expenses decreased from RMB 17.6 million in 2018 to RMB 11.8 million in 2019, primarily due to reduced listing-related expenses[76]. - Income tax expense increased from RMB 3.0 million in 2018 to RMB 7.5 million in 2019, due to growth in pre-tax profit and changes in tax rate eligibility[80]. Production and Operations - The company successfully launched its first-phase production facility for high-purity oleic acid, significantly reducing the raw material costs for its main product, diesel anti-wear agent, thus enhancing its cost competitiveness[43]. - The first-phase project to enhance factory capacity was successfully launched in 2019, contributing to the company's operational efficiency[43]. - The company plans to continue enhancing production capacity at its factory in Yixing, China, to meet customer demand[59]. - A new product line of automotive fuel additives utilizing the latest sixth-generation formula began trial production at the end of 2019, which will expand the company's marketing system to include a B2C model[43]. - A new series of gasoline detergents using the latest sixth-generation formula has undergone trial production and is set for official launch in 2020[60]. Market and Customer Base - The company strengthened partnerships with non-state-owned refining enterprises, including new supply agreements with Hengli Petrochemical and Zhejiang Petrochemical, and aims to diversify its customer base further[44]. - The company aims to diversify its customer base by developing non-state-owned refinery users and collaborating with capable traders to explore overseas markets[60]. - Revenue from the Chinese market decreased from RMB 171.3 million in 2018 to RMB 163.9 million in 2019, primarily due to a decrease in sales of oil additives[67]. - Revenue from the Sudan market increased from RMB 4.9 million in 2018 to RMB 10.5 million in 2019, mainly due to the resumption of usage of refining additives after maintenance work was completed[67]. Financial Position and Cash Flow - Net cash flow from operating activities increased from RMB 8.1 million in 2018 to RMB 50.4 million in 2019, reflecting improved collection of trade receivables and increased profits during the year[85]. - Cash used in investing activities amounted to RMB 12.2 million in 2019, primarily due to payments of RMB 14.9 million for the purchase of property, plant, and equipment[86]. - Cash used in financing activities was RMB 4.1 million in 2019, mainly for dividend payments to shareholders[89]. - Total current assets increased from RMB 232.7 million in 2018 to RMB 248.1 million in 2019, driven by better credit control and increased cash and cash equivalents[90]. - Trade and other receivables decreased from RMB 96.4 million in 2018 to RMB 73.9 million in 2019, attributed to improved credit control leading to faster settlements by customers[96]. - Inventory rose from RMB 24.6 million in 2018 to RMB 27.6 million in 2019, mainly due to increases in work-in-progress and consignment stock[92]. - Average inventory turnover days increased from 59 days in 2018 to 82 days in 2019, as more inventory was retained for orders to be delivered in early 2020[93]. - Trade receivables (net of impairment) decreased from RMB 81.7 million in 2018 to RMB 60.4 million in 2019, with a significant portion collected within three months[97]. - Cash and cash equivalents at year-end increased to RMB 146.7 million in 2019 from RMB 111.7 million in 2018[90]. - Current liabilities decreased from RMB 26.4 million in 2018 to RMB 23.0 million in 2019, primarily due to reductions in trade and other payables[90]. - Trade and other payables decreased from RMB 20.9 million as of December 31, 2018, to RMB 19.3 million as of December 31, 2019, primarily due to the settlement of other payables[101]. Shareholder and Governance - The board proposed a final dividend of HKD 0.01 per share for the year ending October 31, 2019, as a return to shareholders for their trust and support[43]. - The company has established a remuneration committee to review and recommend compensation policies for directors and senior management[186]. - The major shareholders, Innovative Green Holdings, hold 360,000,000 shares, representing 75% of the total shares[197]. - The beneficial ownership of 360,000,000 shares is equally held by Mr. Ge and Ms. Gu, who are spouses[194]. - The company had no unexercised stock options under the stock option plan as of December 31, 2019[163]. - The stock option plan was approved by shareholders on March 11, 2018, aiming to incentivize participants and retain key contributors, with a maximum issuance limit of 30% of the company's issued shares[158]. - No rights were granted to directors or their family members to profit from acquiring the company's shares or bonds during the reporting period[199]. Research and Development - The company’s R&D center has been recognized as a "provincial industrial enterprise technology center," indicating a commitment to enhancing research and development capabilities[60]. - The company specializes in developing, producing, and marketing refining additives and oil products that comply with evolving regulatory requirements[153]. - The company is focused on reducing harmful emissions through its product offerings, aligning with regulatory demands[153]. Compliance and Risk Management - The company plans to enhance safety management and facilities in response to increased regulatory scrutiny in the chemical industry, ensuring high standards of safety management[44]. - The company has strengthened safety management and facility upgrades in response to increased regulatory scrutiny following a major industrial accident in China[61]. - The company adheres strictly to the environmental, social, and governance reporting guidelines as per the listing rules[156]. - The company faced no contingent liabilities as of December 31, 2019, and had no off-balance sheet arrangements[106]. Employee and Management - As of December 31, 2019, the group had a total of 73 employees, all located in China[186]. - The remuneration for two senior management members was less than HKD 1,000,000 each for the year ended December 31, 2019[189]. - Both executive directors agreed to waive their director's fees for the year ended December 31, 2019[189]. - The company continues to provide training programs for management and employees to enhance their skills and knowledge[186].

Industry Overview - The company focuses on developing, producing, and marketing refining additives and oil additives that reduce harmful emissions and comply with evolving regulatory requirements [47]. - The Chinese government implemented the "Fifth Stage National Standard for Automotive Gasoline" on January 1, 2018, with stricter quality requirements set to take effect on July 1, 2020 [48]. - The demand for refining additives and oil additives is closely linked to China's crude oil consumption and fuel quality standards, which have been steadily increasing over the past decades [48]. - Jiangsu Province has a significant advantage in the refining additives and oil additives industry due to its proximity to major refineries, allowing for lower logistics costs [48]. - The refining additives and oil additives industry in China is relatively fragmented, with major participants experiencing rapid growth in recent decades [48]. - The implementation of stricter gasoline quality standards is expected to promote the production and consumption of high-quality fuels in China [48]. - The company is positioned to benefit from the growing demand for high-quality fuel additives as regulatory standards become more stringent [48]. Financial Performance - Total revenue for the reporting period was RMB 82.1 million, an increase of 1.1% from RMB 81.2 million for the six months ended June 30, 2018 [51]. - Revenue from refining additives decreased from RMB 51.6 million to RMB 47.6 million, primarily due to delayed shipments to a major customer in Sudan [57]. - Revenue from fuel additives increased from RMB 29.7 million to RMB 34.5 million, driven by increased demand for fuel quality upgrades in response to environmental policies [57]. - Revenue from mainland China rose from RMB 76.9 million to RMB 80.5 million, attributed to growing local customer demand [61]. - Sales cost decreased from RMB 56.6 million to RMB 53.9 million, with refining additives cost dropping due to lower procurement prices for key raw materials [62]. - Gross profit for the six months ended June 30, 2019, was RMB 28.2 million, an increase of 14% from RMB 24.6 million in the same period of 2018, with gross margin rising from 30% to 34% [64]. - Revenue from oil additives increased by 39% to RMB 14.2 million, driven by higher sales volume and an increase in the proportion of high-margin products sold, with gross margin improving from 34.3% to 41.2% [64]. - Net profit increased by 48% to RMB 14.3 million, up from RMB 9.7 million in the same period last year, attributed to reduced professional service fees and improved gross margins [71]. Operational Developments - The company operates its main production facility in Yixing, Jiangsu Province, which is strategically located near several large refineries [48]. - The first phase of capacity enhancement at the factory in Yixing, China, is ongoing and expected to be completed in the second half of 2019 [55]. - The company aims to expand its product portfolio and enhance existing product quality, with new products set to launch in the second half of 2019 [55]. - The company has established long-term relationships with several major private refining enterprises in China, expanding its customer base [55]. - The company is in the process of trial production for a key raw material, with formal production expected in the second half of 2019 [55]. Cash Flow and Assets - Cash and cash equivalents rose from RMB 111.7 million to RMB 119.4 million, mainly due to a decrease in trade receivables [76]. - Trade receivables decreased from RMB 96.4 million to RMB 84.7 million, mainly due to a major customer settling most of their accounts by the end of June 2019 [79]. - The net cash generated from operating activities significantly increased to RMB 22,981 thousand for the six months ended June 30, 2019, compared to RMB 1,946 thousand in the same period of 2018, marking a growth of 1,078.5% [141]. - Cash and cash equivalents at the end of the period rose to RMB 119,420 thousand from RMB 111,690 thousand, an increase of 6.2% [141]. - Total liabilities decreased from RMB 26,408 thousand to RMB 20,351 thousand, a reduction of 22.9% [127]. - Non-current assets increased to RMB 46,685 thousand as of June 30, 2019, compared to RMB 38,190 thousand as of December 31, 2018, representing a growth of 22.5% [127]. Corporate Governance and Compliance - The company maintained compliance with the corporate governance code, although the roles of Chairman and CEO are held by the same individual [112]. - The interim financial report is prepared in accordance with the Hong Kong Financial Reporting Standards and has not been audited, but has been reviewed by KPMG [146][148]. - The company adopted the new Hong Kong Financial Reporting Standard 16 on leases starting January 1, 2019, which requires capitalization of all leases except for short-term leases and low-value assets [149][153]. - The accounting policies adopted in the interim financial report are consistent with those used in the preparation of the annual financial statements for 2018 [148]. Research and Development - The company has four invention patents and 20 utility model patents, qualifying as a "high-tech enterprise" since 2013 [51]. - Research and development expenses for the period were RMB 3,862,000, slightly decreased from RMB 3,961,000 in 2018 [121]. - The company plans to continue its research and development efforts, with R&D expenses (excluding depreciation) amounting to RMB 3,412,000 for the six months ended June 30, 2019 [167]. Shareholder Information - The company’s shares were listed on the Hong Kong Stock Exchange on March 28, 2018 [47]. - The company did not recommend any interim dividend during the reporting period [109]. - The company has not purchased, sold, or redeemed any of its listed securities from the listing date to the report date [100]. - The company has not granted, exercised, canceled, or lapsed any share options under the share option scheme since its adoption [99].

Financial Performance - The company recorded revenue of approximately RMB 177.1 million for the fiscal year ending December 31, 2018, a decrease compared to the previous year[45]. - Net profit for the same period was approximately RMB 23.0 million, also reflecting a decline from 2017 due to a significant customer's production halt in Sudan[45]. - Total revenue decreased by 5.2% from RMB 186.8 million in 2017 to RMB 177.1 million in 2018[65]. - Revenue from refining additives fell by 20.3% from RMB 130.8 million in 2017 to RMB 104.2 million in 2018, primarily due to maintenance shutdowns by key customers[57]. - Revenue from oil additives increased by 29.9% from RMB 56.1 million in 2017 to RMB 72.9 million in 2018, driven by higher sales volume[58]. - Revenue from the Chinese market increased from RMB 163.3 million in 2017 to RMB 171.3 million in 2018, reflecting growing local customer demand[69]. - Revenue from Sudan decreased significantly from RMB 21.1 million in 2017 to RMB 4.9 million in 2018 due to a major customer's maintenance shutdown[69]. - Operating profit decreased from RMB 32.6 million in 2017 to RMB 26.3 million in 2018, primarily due to a major customer in Sudan undergoing maintenance[72]. - Gross profit fell from RMB 69.2 million in 2017 to RMB 53.2 million in 2018, resulting in a gross margin decline from 37.0% to 30.0%[73]. - Other income rose significantly from RMB 0.8 million in 2017 to RMB 6.0 million in 2018, mainly due to increased government subsidies and bank interest income[74]. Investments and Capital Expenditure - The company has adjusted its fundraising investment plans due to the temporary decline in Sudan's business and the impact of international trade tensions[45]. - Capital expenditure for expanding capacity and production of oleic acid was RMB 14.692 million in 2018, a significant increase from RMB 0.4 million in 2017[106]. - The company plans to use the proceeds for purchasing new machinery and equipment, constructing production facilities, and general business operations[122]. Research and Development - The company has three invention patents and 15 utility model patents as of the report date, qualifying as a "High-tech Enterprise" since 2013[56]. - The company plans to enhance R&D capabilities to develop innovative and high-quality refining additives and oil additives[64]. - Research and development efforts have increased by 18%, focusing on innovative refining technologies[137]. - The company maintained stable R&D expenses at approximately RMB 7.8 million in 2018, focusing on labor, materials, and equipment depreciation[79]. Market and Customer Base - The company has diversified its customer base, becoming a qualified supplier for major private enterprises such as Hengli Petrochemical and Zhejiang Petroleum and Chemical, which will broaden its market reach[46]. - The implementation of China's fifth phase of vehicle emission standards began on January 1, 2018, with stricter sixth phase standards set to take effect in July 2020 and July 2023, expected to increase demand for the company's products[46]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by the end of the fiscal year[137]. - A strategic acquisition of a local competitor is anticipated to enhance production capacity by 30%[137]. Financial Position and Liquidity - Cash and cash equivalents increased from RMB 25.973 million at the beginning of 2018 to RMB 111.690 million at the end of the year[84]. - Current assets increased from RMB 133.7 million as of December 31, 2017, to RMB 232.7 million as of December 31, 2018, mainly due to proceeds from share issuance[90]. - Current liabilities decreased from RMB 49.9 million to RMB 26.4 million, primarily due to the repayment of bank loans[90]. - The current ratio improved significantly from 2.7 in 2017 to 8.8 in 2018, reflecting increased cash and cash equivalents from share issuance[116]. - The quick ratio also increased from 2.4 in 2017 to 7.9 in 2018, indicating enhanced liquidity[117]. - Net cash generated from operating activities was RMB 8.1 million in 2018, reflecting adjustments for depreciation and changes in working capital[85]. Shareholder and Management Information - The company expressed gratitude to shareholders, employees, partners, and suppliers for their support and efforts in the past year, aiming to deliver greater returns in the new year[48]. - As of December 31, 2018, the total reserves available for distribution to shareholders amounted to RMB 103,471,000[169]. - The company issued a total of 120,000,000 shares at a price of HKD 1.25 per share during its IPO on March 28, 2018[167]. - The company has established a remuneration committee to provide recommendations on the overall remuneration policy and structure for all directors and senior management[180]. - The board of directors consists of three executive directors and three independent non-executive directors as of the report date[175]. Compliance and Governance - The company strictly adheres to environmental, social, and governance reporting guidelines as per the listing rules[154]. - The company has received annual confirmations of independence from all independent non-executive directors[171]. - The company has not engaged in any related party transactions for the year ending December 31, 2018[197]. - Controlling shareholders confirmed compliance with a non-competition agreement throughout the review period[200].