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].

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].

Financial Performance - For the fiscal year ending December 31, 2021, the company reported total revenue of approximately RMB 177.3 million, representing a growth of over 10% despite adverse macroeconomic conditions[8] - The net profit for the same period was approximately RMB 11.7 million, showing a significant decline due to rising costs of raw materials and shipping[8] - The total revenue for the fiscal year ending December 31, 2021, was approximately RMB 177.3 million, representing a year-on-year increase of 10.9%[18] - The net profit for the same period was approximately RMB 11.7 million, a decrease of 47.1% year-on-year due to rising raw material prices and shipping costs[19] - Revenue increased by 10.9% from RMB 159.9 million in 2020 to RMB 177.3 million in 2021[27] - The company's profit decreased by 47.1% from RMB 22.1 million in the year ended December 31, 2020, to RMB 11.7 million in the year ended December 31, 2021, primarily due to a decline in total gross profit[44] Cost and Expenses - Total sales cost rose from RMB 115.0 million in 2020 to RMB 140.8 million in 2021, primarily due to global inflation affecting raw material prices[33] - Operating profit decreased from RMB 23.3 million in 2020 to RMB 12.9 million in 2021, mainly due to reduced gross profit from product sales[34] - Gross profit fell from RMB 44.9 million in 2020 to RMB 36.5 million in 2021, with a gross margin decline from 28.1% to 20.6%[36] - Research and development expenses increased slightly from RMB 7.5 million in 2020 to RMB 7.7 million in 2021, covering labor, materials, and equipment depreciation[42] - Sales and marketing expenses rose from RMB 8.4 million in 2020 to RMB 9.5 million in 2021, mainly due to increased freight and service fees[39] - General and administrative expenses increased from RMB 10.1 million in 2020 to RMB 10.7 million in 2021, primarily due to higher entertainment and hospitality costs[41] - Tax expenses rose from RMB 1.17 million in 2020 to RMB 1.24 million in 2021, with effective tax rates of 5.0% and 9.6% respectively[43] Research and Development - The company successfully obtained 1 new invention patent and 4 new utility model patents, while also applying for an additional 1 invention patent and 4 utility model patents[9] - The company’s laboratory received CNAS certification after significant upgrades and optimization, enhancing its research capabilities[9] - The company reported a significant increase in R&D capabilities, with nearly 30 years of experience in refining additives and oil products additives from the executive director responsible for R&D[87] - The company aims to enhance its product offerings through ongoing research and development efforts in new technologies[92] Market and Business Strategy - The company plans to expand cooperation with more international traders to mitigate the impact of rising raw material prices[9] - The company aims to leverage the growth in China's refining capacity, projected to reach 980 million tons by 2025, to strengthen its market position[11] - The company aims to expand its business scope and sales channels by actively participating in more procurement tenders and collaborating with international traders[26] - The company is focused on expanding its market presence, leveraging the expertise of its management team in various sectors[92] - The company is actively pursuing strategic partnerships and potential acquisitions to bolster its market position[92] Governance and Management - The company has established a remuneration committee to provide recommendations on the overall remuneration policy for directors and senior management[140] - The company’s board of directors consists of nine members, with a mix of executive and independent non-executive directors[133] - The board has delegated daily operational responsibilities to the executive directors and senior management, maintaining oversight through three committees: Audit, Remuneration, and Nomination[197] - The board regularly reviews each director's commitment and contribution to the company, ensuring effective governance and oversight[195] - All independent non-executive directors have confirmed their independence according to the listing rules, contributing to effective independent judgment[200] Shareholder and Dividend Information - The company maintained a dividend of HKD 0.01 per share despite the temporary decline in net profit, reflecting its commitment to shareholder returns[11] - The board has proposed a final dividend of HKD 0.01 per share for the year ended December 31, 2021, consistent with the previous year's dividend[182] - The total distributable reserves available for shareholders as of December 31, 2021, amounted to RMB 86,517,000[132] Risk Management - The company has a credit policy to continuously monitor credit risks associated with various counterparties, which may negatively impact revenue and profitability if defaults occur[172] - The ongoing uncertainty of the COVID-19 pandemic may continue to affect business and financial performance[174] - The global inflation that began in 2021 may continue to drive up raw material prices, impacting financial performance[175] Employee and Management Experience - The company had a total of 59 employees as of December 31, 2021, all located in China[140] - The company has a strong financial management team, with the finance manager having over 20 years of experience in financial accounting[98] - The sales and market development director has over 20 years of experience, indicating strong leadership in sales strategies[88] - The sales manager has accumulated over 15 years of experience in the refining additives and oil products additives industry, enhancing the company's sales performance[89] Compliance and Audit - The external auditor, KPMG, has audited the consolidated financial statements for the year ended December 31, 2021[190] - The board has confirmed compliance with the Corporate Governance Code, except for the combined roles of Chairman and CEO[188] - The company has adopted the Corporate Governance Code and has complied with its provisions, except for the deviation regarding the roles of the Chairman and CEO, which are held by the same individual, Mr. Ge Xiaojun[192]