Corporate Governance - The Audit Committee held two meetings during the reporting period to review and discuss the interim and final performance of the company and its subsidiaries[6]. - The company has established a Remuneration Committee consisting of five members, which met once during the reporting period to discuss and determine the remuneration policy for executive directors and senior management[8]. - The Nomination Committee, comprising five members, convened once during the reporting period to review the independence of independent non-executive directors and matters related to the board's structure and composition[11]. - The company has complied with the listing rules by appointing at least three independent non-executive directors, constituting at least one-third of the board[13]. - The financial statements for the fiscal year 2023 have been reviewed by the Audit Committee[7]. - The company encourages all directors to participate in relevant training courses, with costs covered by the company[1]. - The Remuneration Committee is responsible for proposing remuneration policies and reviewing the performance of executive directors[8]. - The Nomination Committee will consider the company's diversity policy when assessing board composition and recommending candidates[9]. - The company has maintained a transparent process for the appointment and re-election of directors, with specific terms outlined in service agreements[14]. - The Audit Committee's main responsibilities include overseeing internal controls and risk management systems[4]. - The board of directors is responsible for leading and controlling the company, ensuring effective oversight of operations and financial performance[17]. - The company has established a compliance committee to ensure adherence to regulatory requirements and effective compliance systems[26]. - All directors have confirmed compliance with the standard code of conduct for securities trading during the reporting period[28]. - The board has a mechanism in place to obtain independent views and opinions, which is reviewed annually for effectiveness[29]. - The attendance rate for the annual general meeting and board meetings was 100% for all directors[31]. - The board consists of two executive directors and four independent non-executive directors, ensuring a strong independent element in governance[34]. - The chairman and CEO roles are held by the same individual, Mr. Zhao, which the board believes benefits the management of the group[34]. Financial Performance - Total revenue for the fiscal year 2023 was approximately RMB 201.99 million, a decrease of 26.2% compared to RMB 273.60 million in fiscal year 2022[37]. - Gross profit for fiscal year 2023 was approximately RMB 73.66 million, down 45.8% from RMB 135.90 million in fiscal year 2022, with a gross margin of 36.5% compared to 49.7% in the previous year[38]. - Net profit for fiscal year 2023 was approximately RMB 21.32 million, a decline of 73.0% from RMB 78.98 million in fiscal year 2022, resulting in a net profit margin of 10.6% compared to 28.9% in the prior year[37]. - Sales of spherical graphite and its by-products totaled RMB 99.63 million, down 24.1% from RMB 131.33 million in fiscal year 2022[37]. - Sales of flake graphite concentrate were RMB 101.33 million, a decrease of 26.8% from RMB 138.34 million in the previous fiscal year[37]. - The company decided not to declare a final dividend for the fiscal year 2023, compared to a dividend of 1.6 HK cents in fiscal year 2022, to retain reserves for future expansion[38]. - The company experienced intensified competition in the graphite industry, leading to a decline in product prices during fiscal year 2023[38]. - For the fiscal year ending December 31, 2023, the total revenue of the group was approximately RMB 202.0 million, a year-on-year decrease of 26.2% due to increased competition in the natural graphite industry[50]. - The net profit for the fiscal year was approximately RMB 21.3 million, a decrease of about 73.0% compared to RMB 79.0 million in the fiscal year 2022[63]. - In the second half of the fiscal year, total revenue was approximately RMB 154.8 million, a year-on-year decrease of 14.0%, significantly narrowing from a 49.5% decline in the first half[50]. - The group anticipates continued growth in the global new energy vehicle market, driven by technological advancements and increasing consumer demand for environmentally friendly transportation[62]. - The adjusted net profit for the fiscal year 2023 is approximately RMB 18.7 million, a decrease from RMB 83.8 million in fiscal year 2022, reflecting a decline of about 77.7%[136]. - The net cash generated from operating activities is approximately RMB 27.6 million, primarily due to a pre-tax profit of about RMB 24.1 million[141]. - Revenue from the sale of spherical graphite accounted for approximately 49.3% of total revenue in fiscal year 2023, compared to 48.0% in fiscal year 2022[144]. - Revenue from the sale of flake graphite decreased from approximately RMB 138.3 million in fiscal year 2022 to about RMB 101.3 million in fiscal year 2023, representing a decline of approximately 26.8%[147]. - The gross profit for fiscal year 2023 is approximately RMB 73.7 million, with a gross profit margin of about 36.5%, down from RMB 135.9 million and 49.7% in fiscal year 2022[151]. - The financing cost turned from approximately RMB 0.5 million in fiscal year 2022 to a financial income of about RMB 0.9 million in fiscal year 2023[156]. - The income tax expense decreased from approximately RMB 15.0 million in the fiscal year 2022 to about RMB 2.8 million in the fiscal year 2023, primarily due to a reduction in net profit from subsidiaries[157]. - The net profit after tax dropped from approximately RMB 79.0 million in the fiscal year 2022 to about RMB 21.3 million in the fiscal year 2023[158]. Operational Highlights - The production of flake graphite concentrate increased from 52,000 tons in the fiscal year 2022 to approximately 57,000 tons in the fiscal year 2023, representing a year-on-year growth of about 9.6%[52]. - The sales volume of flake graphite concentrate was 36,348 tons, a slight decrease of 0.1% year-on-year, with a gross margin of 37.8%, down 16.9 percentage points year-on-year[53]. - The group plans to significantly increase the permitted graphite extraction capacity at the Beishan mine, supported by the acquisition of nearby forest land for new processing facilities[56]. - The group aims to enhance its research capabilities and focus on high value-added products in the natural graphite anode sector to strengthen its core competitiveness[58]. - The sales volume of spherical graphite was 6,440 tons, a year-on-year decrease of 10.2%, with a partial gross margin of 35.5%, down 9.9 percentage points[75]. - The company has acquired 1,496,539 square meters of forest land for approximately RMB 86.9 million to facilitate expected increases in mining activities[92]. - The company has completed exploration drilling covering 0.2651 square kilometers at the Beishan mine, with a total expenditure of approximately RMB 4.3 million[119]. - The company has shifted its strategic focus from "production-oriented" to "production cost optimization" in response to recent business environment changes[137]. - The company continues to invest in the development of new processing plants to maintain and strengthen its graphite production capacity[139]. - The company has increased its workforce to 288 employees as of December 31, 2023, up from 196 in the previous fiscal year, aligning with expected production increases[172]. - The company has not made any significant investments or acquisitions other than those disclosed in the report for the fiscal year 2023[177]. Cash Flow and Financial Position - The current ratio decreased from 4.7 in 2022 to 2.9 in 2023, indicating a decline in liquidity[169]. - The company has utilized approximately RMB 71.7 million of the net proceeds for the acquisition of land costing about RMB 86.9 million, with the remaining land cost of approximately RMB 15.2 million funded by operating cash flow and bank loans[164]. - As of December 31, 2023, the company had cash and cash equivalents of approximately RMB 111.9 million, exceeding total borrowings by about RMB 66.4 million, indicating a positive net cash position[171]. - The net cash used in investing activities was approximately RMB 58.2 million, primarily for tailings storage improvement and purchasing property, plant, and equipment[190]. - The net cash generated from financing activities was approximately RMB 30.9 million, mainly from bank borrowings of RMB 56.4 million, offset by dividend payments of RMB 23.0 million[191]. - The gross profit margin for fiscal year 2023 was 36.5%, down from 49.7% in fiscal year 2022[192]. - The net profit margin for fiscal year 2023 was 10.6%, a decrease from 28.9% in fiscal year 2022[192]. - The current ratio decreased due to borrowings increasing from approximately RMB 10.0 million in fiscal year 2022 to RMB 66.4 million in fiscal year 2023[195]. - Capital expenditures for fiscal year 2023 were approximately RMB 58.2 million, compared to RMB 52.9 million in fiscal year 2022[198]. - The company did not have any contingent liabilities or significant lawsuits that could adversely affect its business or financial condition as of December 31, 2023[199]. - The company has adopted a cautious funding and financial policy to manage overall business operations[187]. - The company did not use any financial instruments for hedging in the fiscal year 2023[187].

Financial Performance - In the first half of 2023, the total revenue of China Graphite Group was RMB 47.2 million, a year-on-year decrease of 49.6% due to weak downstream demand for natural graphite [11]. - Revenue decreased from approximately RMB 93.6 million in the first half of 2022 to about RMB 47.2 million in the first half of 2023, while gross profit fell from RMB 41.3 million to RMB 16.9 million during the same period [27]. - The group’s gross profit for the first half of 2023 was RMB 16.9 million, a decrease of 59.1% year-on-year, with a gross margin of 35.8%, down 8.3% year-on-year [83]. - The company recorded a net loss of approximately RMB 3.3 million, compared to a net profit of about RMB 13.2 million in the same period of 2022, primarily due to increased competition in the automotive market and a slowdown in the growth of the lithium-ion battery industry [27]. - For the six months ended June 30, 2023, the company reported a loss attributable to owners of the group of RMB 3,342,000 compared to a profit of RMB 13,249,000 for the same period in 2022, representing a significant decline [183]. - The net loss before tax for the period was RMB 4,240,000, with total comprehensive loss for the period amounting to RMB 10,056,000 [144]. - The company reported a total comprehensive loss of RMB 3,342 thousand for the period, reflecting the overall financial performance [104]. Sales and Production - Sales volume of spherical graphite was 1,899 tons, a year-on-year decrease of 42.9%, with a gross margin of 33.0%, down 9.2 percentage points [14]. - The company expects production capacity to increase to 500,000 tons per year, reaching the current government-approved limit for mining in China [17]. - As of the first half of 2023, the company has mined approximately 159,000 tons of unprocessed graphite ore, a significant increase from about 6,000 tons in the same period last year [17]. - The graphite industry has shown signs of demand recovery starting from Q3 2023, with a projected increase in sales of natural graphite products due to inventory replenishment by companies [61]. Cash Flow and Financial Position - The company's cash flow from operating activities was approximately RMB 56.1 million in the first half of 2023, down from RMB 67.4 million in the first half of 2022 [31]. - Cash and cash equivalents increased to RMB 113.4 million at the end of the first half of 2023, compared to RMB 65.9 million at the end of the first half of 2022 [31]. - Total assets as of June 30, 2023, amounted to RMB 475.738 million, down from RMB 530.749 million [85]. - Total liabilities as of June 30, 2023, were RMB 51.589 million, indicating a decrease in financial obligations [85]. - The company’s total equity decreased to RMB 424,149,000 from RMB 450,515,000 as of December 31, 2022 [139]. Research and Development - The company has increased R&D investment to enhance product quality and improve processes in response to market challenges [10]. - The company has initiated several R&D projects aimed at optimizing production efficiency for flake and spherical graphite and developing new product models [21]. - Research and development expenses amounted to RMB 8,297 thousand, indicating the company's commitment to innovation despite financial losses [100]. Corporate Governance - The company has established an Audit Committee, Compensation Committee, Nomination Committee, and Compliance Committee to enhance corporate governance and oversight [57][58][73]. - The Audit Committee has reviewed the interim results for the first half of 2023, ensuring compliance with financial reporting standards [59]. - The company has adhered to all applicable provisions of the Corporate Governance Code during the first half of 2023, with one exception noted [68]. - The company is committed to ensuring compliance with regulatory matters and maintaining effective compliance systems [73]. Strategic Initiatives - The company plans to relocate its graphite purification business to Weihai, Shandong Province, to take advantage of lower costs and favorable government policies [15]. - The company aims to strengthen its core competitiveness in the natural graphite industry through continuous exploration and innovation [21]. - The company is focused on exploring new strategies for market expansion and product development in response to current challenges [83]. - The company aims to become a unique player in the natural graphite anode materials industry, leveraging opportunities in the expanding electric vehicle market [61]. Market Outlook - The International Energy Agency (IEA) forecasts that electric vehicle sales in China will exceed 8 million units in 2023, representing a growth of over 30% compared to 2022, with a penetration rate surpassing 35% [61]. - The company aims to enhance its market position through strategic initiatives, although specific future outlooks and product developments were not detailed in the provided data [100].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 China Graphite Group Limited 中 国 石 墨 集 团 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：2237） 截至二零二三年六月三十日止六個月的中期業績公告 中國石墨集团有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及 其附屬公司截至二零二三年六月三十日止六個月的中期簡明綜合業績。本公告載 列本公司二零二三年中期報告全文，並遵守香港聯合交易所有限公司（「聯交所」） 證券上市規則中有關中期業績初步公告隨附資料的適用規定。本公司二零二三年 中期報告的印刷版本將適時寄發予本公司股東。 本公司二零二三年中期業績公告刊載於聯交所網站www.hkexnews.hk及本公司網站 www.chinagraphite.com.hk。 承董事會命 中國石墨集团有限公司 主席、執行董事兼行政總裁 趙亮 香港，二零二三年八月三十一日 於本公告日期，董事會包括執 ...

Financial Performance - Total revenue for the fiscal year 2022 was approximately RMB 273.6 million, an increase of 37.9% compared to RMB 198.4 million in fiscal year 2021[5]. - Sales revenue from spherical graphite and its by-products reached approximately RMB 131.3 million, up 33.3% from RMB 98.5 million in the previous year[5]. - Sales revenue from flake graphite concentrate was approximately RMB 138.3 million, representing a 41.6% increase from RMB 97.7 million in fiscal year 2021[5]. - Gross profit for fiscal year 2022 was approximately RMB 135.9 million, a 46.1% increase from RMB 93.0 million in fiscal year 2021, with a gross margin rising to 49.7% from 46.9%[5]. - Adjusted net profit, reflecting the actual operational performance, was approximately RMB 83.8 million, a 60.1% increase from RMB 52.3 million in the previous year, with an adjusted net profit margin of 30.6%[5]. - The gross profit margin improved from approximately 46.9% in 2021 to about 49.7% in 2022[18]. - The adjusted net profit after tax increased by approximately 60.1% from about RMB 52.3 million in fiscal year 2021 to approximately RMB 83.8 million in fiscal year 2022[66]. - The actual tax rate increased to 15.9% in fiscal year 2022 from 12.4% in fiscal year 2021, primarily due to non-deductible listing expenses and increased expenses from the Hong Kong office[65]. - The adjusted net profit margin for 2022 was 30.6%, up from 26.4% in 2021, showcasing better profitability[83]. Dividend and Shareholder Information - The board proposed a final dividend of HKD 0.016 per share, subject to approval at the annual general meeting scheduled for May 5, 2023[5]. - The company proposed a final dividend of HKD 0.016 per share for the fiscal year ended December 31, 2022[20]. - Shareholders can submit proposals in writing to the board for consideration at the annual general meeting, with a notice period of at least 15 business days[192]. - The company has multiple communication channels to engage with shareholders and ensure their rights are protected during general meetings[190]. - The company emphasizes effective communication with shareholders to strengthen investor relations and understanding of business performance and strategy[197]. Production and Sales - The production of flake graphite concentrate increased from approximately 48,200 tons in 2021 to about 52,500 tons in 2022, representing a growth of approximately 8.9%[21]. - The sales volume of spherical graphite rose by approximately 18.3%, from about 6,061 tons in 2021 to approximately 7,169 tons in 2022[22]. - The sales volume of micro graphite powder and high-purity graphite powder reached approximately 10,091 tons in 2022, a rise of about 29.7% from the previous year[22]. - The company anticipates that flake graphite production capacity will increase to at least 60,000 tons annually by the end of 2023, and to at least 100,000 tons after the new beneficiation plant is operational in Q4 2025[21]. - The increase in sales of unprocessed marble contributed to revenue growth, with sales rising to approximately RMB 3.9 million in fiscal year 2022 from RMB 2.2 million in fiscal year 2021[54]. Costs and Expenses - The sales cost for fiscal year 2022 rose to approximately RMB 137.7 million, a 30.7% increase from RMB 105.3 million in fiscal year 2021, driven by increased production and operational activities[55]. - The company reported a cost of approximately RMB 22.6 per ton for extracting graphite ore in fiscal year 2022, up from RMB 20.1 per ton in fiscal year 2021[44]. - In the fiscal year 2022, the total mining costs amounted to RMB 25,589 thousand, significantly up from RMB 10,980 thousand in the previous year[42]. - General and administrative expenses increased by approximately 30.8% to about RMB 25.8 million in fiscal year 2022, compared to approximately RMB 19.7 million in fiscal year 2021[60]. - Research and development expenses rose by approximately 41.9% to about RMB 11.5 million in fiscal year 2022, up from approximately RMB 8.1 million in fiscal year 2021[61]. Corporate Governance - The company has complied with all applicable corporate governance code provisions since its listing date, except for a specific provision related to the chairman and CEO[126]. - The board consists of executive and independent non-executive directors, ensuring a diverse range of expertise and perspectives[130]. - The company has established various committees, including audit, remuneration, nomination, and compliance committees, to operate under the board's authority[148]. - The board is responsible for leading and controlling the company, overseeing operational and financial performance, and ensuring robust internal controls and risk management systems[143]. - The company has adopted a whistleblowing policy to allow employees and stakeholders to report potential misconduct confidentially, including financial reporting and internal controls[175]. Future Outlook and Strategy - The company aims to leverage the strong demand for lithium battery anode materials driven by the rapid growth of the electric vehicle industry for future growth[17]. - Future outlook indicates a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[109]. - The company is investing in R&D for new technologies, with a budget allocation of $5 million for the upcoming year[109]. - The management team has set a performance guidance of achieving a net profit margin of 20% by the end of the next fiscal year[109]. - The company has successfully launched a new product line, contributing to a 30% increase in sales in the last quarter[109]. Risk Management - The board has confirmed the effectiveness of the risk management and internal control systems as of December 31, 2022, with no significant concerns identified[175]. - The company employs a risk self-assessment method to continuously evaluate and manage its risk profile[174]. - The board confirmed that the risk management and internal control systems were effective during the reporting period, with no significant deficiencies identified[179]. Employee and Workforce - The total number of employees increased to 196 as of December 31, 2022, compared to 178 in 2021, aligning with expected production increases[90]. - The company aims to create favorable conditions for attracting more women to the workforce, addressing challenges in the labor market[166]. - As of December 31, 2022, the workforce is composed of 79.1% male employees and 20.9% female employees, with efforts to increase female representation in senior management[166].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 China Graphite Group Limited 中 国 石 墨 集 团 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：2237） 截至二零二二年十二月三十一日止年度的 年度業績公告 中国石墨集团有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及 其附屬公司截至二零二二年十二月三十一日止年度的經審核綜合年度業績。本公 告載列本公司二零二二年年報全文，並遵守香港聯合交易所有限公司（「聯交所」） 證券上市規則中有關年度業績初步公告隨附資料的適用規定。本公司二零二二年 年報的印刷版本將適時寄發予本公司股東。 本公司二零二二年年度業績公告刊載於聯交所網站www.hkexnews.hk及本公司網站 www.chinagraphite.com.hk。 承董事會命 中国石墨集团有限公司 主席、執行董事兼行政總裁 趙亮 中國黑龍江，二零二三年三月二十三日 於本公告日期，董事會 ...

Revenue and Profitability - The revenue for the six months ended June 30, 2022, was approximately RMB 93.6 million, an increase of about 13.5% compared to approximately RMB 82.5 million for the same period in 2021[4]. - Revenue from the sale of spherical graphite and by-products for the six months ended June 30, 2022, was approximately RMB 61.3 million, representing a year-on-year increase of about 27.4% from approximately RMB 48.1 million[4]. - Adjusted net profit for the six months ended June 30, 2022, was approximately RMB 21.6 million, a year-on-year increase of about 20.0% from approximately RMB 18.0 million[4]. - The adjusted net profit margin increased from approximately 21.8% for the same period in 2021 to about 23.1% for the six months ended June 30, 2022[4]. - The company reported a net profit attributable to the owners of the company for the six months was RMB 13,249,000, down 34.1% from RMB 20,147,000 in 2021[16]. - The company reported a net loss attributable to owners of RMB 147,732,000 for the six months ended June 30, 2022, compared to a net loss of RMB 147,558,000 for the same period in 2021, showing a marginal increase in losses[26]. - The company generated a profit of RMB 13,249 thousand for the period, reflecting a positive trend in profitability[61]. Cash and Liquidity - Cash and cash equivalents increased from approximately RMB 33.9 million as of December 31, 2021, to approximately RMB 65.9 million as of June 30, 2022[4]. - Cash and cash equivalents amounted to RMB 65,922,000, reflecting a decrease from RMB 206,743,000 in the previous period[19]. - The cash and cash equivalents at the end of the period increased to RMB 33,934,000 from RMB 31,988,000 at the beginning of the period, reflecting a growth of approximately 6%[28]. - Cash and cash equivalents increased to RMB 65,920,000 as of June 30, 2022, up from RMB 33,930,000 as of December 31, 2021, representing a growth of 94.3%[118]. - The company’s financing activities included repayments of bank loans and interest, with a net cash outflow of RMB 16,157,000 during the period[28]. Assets and Liabilities - Total assets as of June 30, 2022, were RMB 356,044,000, compared to RMB 334,076,000 as of December 31, 2021[19]. - Total liabilities increased to RMB 140,797,000 from RMB 132,078,000 at the end of the previous year[23]. - The company’s total equity attributable to owners increased to RMB 215,247,000 from RMB 201,998,000 as of December 31, 2021[23]. - The total trade receivables and notes receivable as of June 30, 2022, amounted to RMB 101,312,000, compared to RMB 148,645,000 as of December 31, 2021, indicating a decrease of 31.8%[106]. - The company reported accrued expenses and other payables of RMB 29,269,000 as of June 30, 2022, an increase of 58.5% from RMB 18,498,000 as of December 31, 2021[120]. Operational Performance - The company expects to maintain positive momentum in business growth due to increased production of graphite products and mining of unprocessed graphite ore from the Beishan mine in the second half of 2022[4]. - The company plans to expand processing capacity to approximately 8,000 tons of spherical graphite annually by the end of 2022[156]. - The company expects to reduce reliance on third-party suppliers for raw graphite as mining activities at the Beishan mine are anticipated to increase in the second half of 2022[157]. - The company aims to leverage the rapid growth of the Chinese new energy vehicle market, which is expected to drive demand for graphite products[159]. - The company plans to continue expanding its mining operations and has invested approximately RMB 2.0 million in new drilling and excavation equipment to support increased extraction activities[163]. Research and Development - Research and development expenses increased to RMB 4,509,000, a rise of 56.5% from RMB 2,882,000 in the previous year[16]. - Research and development expenses for the six months ended June 30, 2022, were RMB 261,000, compared to RMB 136,000 for the same period in 2021, reflecting an increase of 92.6%[93]. - The company has not reported any significant new product developments or technological advancements during this period[30]. Market and Industry Outlook - Government policies in Heilongjiang Province are expected to support the expansion and development of the graphite industry[160]. - The demand for unprocessed marble remained stable, with revenue from sales approximately RMB 1.5 million in 2022, compared to RMB 1.6 million in 2021, showing no significant change[173]. Financial Management and Risks - The company has no significant contingent liabilities as of June 30, 2022, and December 31, 2021[153]. - The company faces financial risks including interest rate risk, credit risk, and liquidity risk[199]. - The company maintains a prudent cash management policy to ensure strong liquidity for operational needs and business expansion[196].