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份內容而產生或 因依賴該等內容而引致的任何損失承擔任何責任。 Vanov Holdings Company Limited 環龍控股有限公司 （於開曼群島註冊成立的有限公司） 3. 其他收入減少：政府補貼及增值稅加計抵減較2024年上半年有所減少。 於報告期間，董事會認為本集團的營運表現穩定。本集團將聚焦核心戰略，深 化與大型造紙集團的全面合作，進一步拓展海外市場，推動高端產品放量增長。 同時，加速技術升級，持續優化產品性能，提升競爭力。在內部管理上，深化 組織改革，提升運營效率，全方位提質增效。通過客戶深耕、產品升級與成本 優化的協同推進，持續提升盈利品質和經營韌性。 截至本公告日期，本公司仍在落實截至2025年上半年的未經審核中期業績。本 公告所載的資料僅根據本公司管理層參考現時可得資料（包括本集團截至2025 年上半年未經審核綜合管理賬目）作出的初步評估而得出，有關綜合管理賬目 並非經本公司核數師審核，有待落實及作出必要調整（如有）。本公司股東及潛 在投資者 ...

致：香港交易及結算所有限公司 公司名稱: 環龍控股有限公司 (於開曼群島註冊成立之有限公司) FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 呈交日期: 2025年8月5日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02260 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | 2,000,000,000 | | HKD | | 0.01 HKD | | 20,000,000 | | 增加 / 減少 (-) | | | 0 | | | HKD | | 0 | | 本月底結存 | | | 2,000,000,000 | HKD | | 0.01 HKD | | 20,000,000 | 本月底 ...

Industry Performance - In 2024, the production volume of machine paper and paperboard reached 158 million tons, representing a year-on-year increase of 8.6%, marking a historical high[17]. - Enterprises in the papermaking and paper-based product industry achieved an operating income of RMB 146 billion, reflecting a year-on-year increase of 3.9%, with total profit increasing by 5.2%[17]. - The global scale of the paper and paperboard packaging market is expected to reach US$193.801 billion by 2029, with a compound annual growth rate of 3.75% over the next few years[14]. - The papermaking industry is experiencing rising prices for pulp and paper, alongside a push for digital transformation and policies promoting "paper in place of plastic," injecting new momentum into the sector[30]. - The rebound in market demand and green transformation presents new opportunities for the papermaking industry[14]. Technological Innovation and Development - The company focuses on technological innovation and branding, aiming to support the efficient operation of papermaking machines globally[18]. - The Group's technology R&D team achieved significant breakthroughs in key areas such as highly effective dewatering and seam-folding techniques, leading to a comprehensive upgrade of papermaking felt technology[22]. - A new high-end production line measuring 14.5 meters commenced operations in March 2024, producing high-performance papermaking felts for the world's widest and fastest papermaking machines, breaking supply chain barriers in China[23]. - The Group plans to increase investment in technology R&D and production line upgrades to enhance product performance and service quality, while optimizing production processes through digital and intelligent manufacturing[31]. - The Group is committed to promoting green, efficient, and intelligent development in the papermaking felt industry through continuous technological innovation[57]. Environmental and Sustainability Initiatives - National policies on tax and fee reduction have supported technological innovation and transformation in the industry, allowing leading companies to strengthen their market position[17]. - The tightening of environmental protection policies has driven the industry's transformation towards green production[17]. - The Group launched a Photovoltaic power generation project in 2024, following the completion of carbon footprint evaluation and certification for papermaking felts in 2023, reinforcing its commitment to energy conservation and green development[24]. - The Group aims to create a low-carbon paper industry through green and intelligent technologies[18]. - The Group aims to strengthen its ESG management and corporate responsibilities while promoting green manufacturing and fast-tracking technology and product upgrades[37]. Financial Performance - The Group achieved a revenue of approximately RMB255.5 million for the year ended December 31, 2024, representing a year-on-year increase of 7.6% from RMB237.4 million in 2023[60]. - Revenue from the international market increased significantly by 105.5%, contributing to the overall growth in sales and selling price[50]. - Gross profit for the year ended December 31, 2024, was approximately RMB125.8 million, a decrease of approximately RMB0.7 million from approximately RMB126.5 million for the year ended December 31, 2023, with a gross profit margin declining from approximately 53.3% to approximately 49.2%[61]. - Other income increased by approximately RMB6.9 million to approximately RMB20.4 million for the year ended December 31, 2024, primarily due to increased government subsidies and VAT credit policies[64]. - Selling and distribution expenses rose to approximately RMB28.7 million for the year ended December 31, 2024, accounting for approximately 11.2% of revenue, up from 9.4% in 2023[65]. Corporate Governance - The Company has complied with all applicable code provisions under the Corporate Governance Code for the year ended December 31, 2024[109]. - The Board of Directors consists of seven members, including four executive directors and three independent non-executive directors[116]. - The Company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[109]. - The Company has established policies for Directors to seek independent professional advice at the Company's expense[125]. - The Company has mechanisms in place to ensure the independence of non-executive Directors, enhancing corporate governance[145]. Risk Management and Compliance - The Company has established comprehensive risk management policies to identify, evaluate, and manage operational risks, ensuring the safeguarding of shareholders' investments[199]. - The Board is responsible for maintaining effective internal control and risk management systems to protect the Company's assets[196]. - The Company Secretary has confirmed compliance with professional training requirements as per Rule 3.29 of the Listing Rules[198]. - The Board monitors compliance with legal regulations and corporate governance standards, ensuring transparency and accountability[193]. - The Audit Committee is responsible for reviewing the Group's financial reporting process and internal control systems[148].

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 255,488,000, representing a year-on-year increase of 7.6% from RMB 237,370,000[2] - Gross profit decreased slightly to RMB 125,750,000, down 0.6% from RMB 126,489,000[2] - Profit attributable to equity holders of the company was RMB 46,192,000, a decrease of 13.0% compared to RMB 53,124,000 in the previous year[2] - Basic and diluted earnings per share for equity holders were RMB 9.86, down 10.3% from RMB 10.99[2] - Other income increased significantly to RMB 20,365,000 from RMB 13,500,000, marking a growth of 50.5%[4] - The company’s total tax expenses for 2024 amounted to RMB 5,827 thousand, a decrease of 40.5% compared to RMB 9,712 thousand in 2023[4] - Selling and distribution expenses rose to approximately RMB 28.7 million, accounting for 11.2% of revenue, compared to 9.4% in the previous year[40] - Administrative and other operating expenses increased to approximately RMB 50.5 million, up from RMB 42.3 million, due to higher R&D investments[41] - Total financial costs for the year ending December 31, 2024, were approximately RMB 14.6 million, an increase of RMB 2.9 million from RMB 11.7 million in the previous year[42] Assets and Liabilities - Total assets as of December 31, 2024, were RMB 863,349,000, compared to RMB 823,057,000 in 2023, reflecting an increase of 4.9%[5] - Current assets increased to RMB 336,121,000 from RMB 308,516,000, a rise of 8.9%[5] - Inventory levels rose to RMB 29,907,000 from RMB 19,123,000, indicating a significant increase of 56.1%[5] - The company reported a net asset value of RMB 399,728,000, down from RMB 409,009,000, a decrease of 2.8%[6] - Trade payables to third parties increased to RMB 39,004 thousand in 2024 from RMB 26,040 thousand in 2023, indicating a significant rise in liabilities[26] - The company's net asset liability ratio increased to 80.3% as of December 31, 2024, compared to 61.6% in the previous year[47] - The asset-liability ratio was approximately 92.2% as of December 31, 2024, up from 80.8% in the previous year, primarily due to increased short-term loans[51] Business Operations and Strategy - The company is engaged in the design, manufacturing, and sales of paper blankets, with a focus on expanding its product offerings in packaging paper and specialty paper segments[8] - The newly launched high-end production line in Shanghai, measuring 14.5 meters, is the widest and fastest paper machine globally, focusing on high-performance paper blanket production[29] - The company achieved significant breakthroughs in R&D, particularly in efficient dehydration and seam technology, enhancing its product offerings[30] - The company plans to accelerate international development and enhance its technological innovation and capacity upgrades to drive growth towards a greener and smarter industry[34] - The company is focused on technological innovation to drive green, efficient, and intelligent development in the paper blanket industry, aiming to enhance operational performance and international expansion[35] Shareholder Information - The proposed final dividend per share for 2024 is 3 Hong Kong cents, compared to 4 Hong Kong cents in 2023, reflecting a decrease in dividend distribution[21] - The board proposed a final dividend of HKD 0.03 per share for the year ending December 31, 2024, amounting to approximately HKD 14,503,260, compared to HKD 0.04 per share in 2023[76] - The record date for the final dividend eligibility is set for June 30, 2025[79] Corporate Governance and Compliance - The company has complied with the corporate governance code, with some deviations regarding the notice period for board meetings[70] - The audit committee reviewed the consolidated financial statements for the year ending December 31, 2024, and confirmed compliance with applicable accounting standards and regulations[80] - The company maintained sufficient public float as per listing rules as of December 31, 2024[81] Future Plans and Events - The annual general meeting is scheduled for June 20, 2025[75] - The company will suspend share transfer registration from June 17 to June 20, 2025, to determine eligibility for voting at the annual general meeting[78] - The company will also suspend share transfer registration from June 26 to June 30, 2025, to determine eligibility for the proposed final dividend[79] - The annual report for the year ending December 31, 2024, will be published on the Hong Kong Stock Exchange website and the company's website[83] Miscellaneous - The company has not engaged in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures as of December 31, 2024[57] - No significant post-balance sheet events occurred after December 31, 2024, up to the date of this announcement[69] - The chairman of the board is Shen Genlian, who is also an executive director[84]

Economic Performance - In the first half of 2024, China's GDP reached approximately RMB 61.7 trillion, representing a year-on-year growth of 5.0%[8]. - The overall positive economic trend supports the Group's growth and operational stability in the first half of 2024[8]. Industry Trends - The production volume of machine paper and paperboard was approximately 76.613 million tons, reflecting a year-on-year increase of 11.8%[8]. - The cumulative export trade of the papermaking and paper-based product industry was approximately RMB 38.04 billion, representing a year-on-year increase of 11.9%[8]. - The papermaking industry is transitioning towards a green, efficient, and intelligent direction, driven by improved external demands[8]. Technological Innovation and Development - The Group emphasizes technological innovation and branding, focusing on sustainable development and low-carbon initiatives in the papermaking industry[9]. - The Group's commitment to continuous improvement and innovation is seen as a core driver for sustainable development[9]. - The completion of a new 14.5-meter high-end production line in Shanghai is expected to enhance product quality and stability, contributing to the Group's growth and the papermaking industry[12]. - The Group plans to focus on technological innovation and increase investment in the international market to boost overseas market share and operational efficiency of the new production line[14]. Financial Performance - The Group achieved a revenue of RMB96.5 million for the first half of 2024, representing a year-on-year growth of 11.6% compared to RMB86.5 million in the same period of 2023[13]. - Revenue from the international market grew by 45% in the first half of 2024, indicating significant breakthroughs in international sales[13]. - The Group's gross profit for the first half of 2024 was approximately RMB47.5 million, with a gross profit margin of 49.2%, remaining stable compared to 49.3% in the same period of 2023[17]. - Profit before income tax for the six months ended June 30, 2024, was RMB 20,335,000, a decrease of 9.4% from RMB 22,526,000 in the prior year[66]. - Profit and total comprehensive income for the period was RMB 18,631,000, down from RMB 20,458,000 in the same period last year, reflecting a decline of 8.9%[66]. Expenses and Costs - Administrative and other operating expenses increased to approximately RMB17.2 million in the first half of 2024, up by RMB1.8 million from RMB15.4 million in the same period of 2023[18]. - Selling and distribution expenses increased to approximately RMB11.5 million, accounting for 11.9% of revenue, primarily due to higher business promotion and travel costs[17]. - Total borrowing costs for the six months ended June 30, 2024, were RMB 9,088,000, an increase of 33% from RMB 6,818,000 in 2023[96]. Assets and Liabilities - Trade and other receivables as of June 30, 2024, were approximately RMB 189.5 million, down from RMB 209.9 million as of December 31, 2023[24]. - As of June 30, 2024, net assets of the Group were approximately RMB 370.7 million, down from RMB 409.0 million as of December 31, 2023[25]. - The current ratio as of June 30, 2024, was 89.9%, a significant decrease from 161.3% as of December 31, 2023[25]. - The gearing ratio increased to approximately 90.1% as of June 30, 2024, compared to 82.6% as of December 31, 2023, primarily due to the introduction of a Share Award Scheme[26][30]. - The Group's total liabilities increased to RMB 66,888,000 as of June 30, 2024, from RMB 55,931,000 as of December 31, 2023, reflecting an increase of approximately 19.6%[120]. Shareholder Information - Ms. Shen Genlian and Mr. Zhou Jun each hold 359,947,200 shares, representing approximately 74.46% interest in the company[39]. - Perfect Angle Limited holds 269,960,400 shares, accounting for 55.84% of the company's total shares[46]. - Wonderful Advisor Limited holds 89,986,800 shares, representing 18.61% of the company's total shares[46]. Employee and Management - As of June 30, 2024, the Group had 396 employees, an increase from 343 employees as of June 30, 2023[33]. - Total staff costs for the six months ended June 30, 2024, amounted to approximately RMB 19.1 million, compared to approximately RMB 18.7 million for the same period in 2023[33]. - Key management personnel compensation for the six months ended June 30, 2024, was RMB 1,979,000, compared to RMB 1,585,000 in the same period of 2023[130]. Cash Flow and Financing - Cash generated from operations increased to RMB 43,630,000, up 27% from RMB 34,412,000 in the same period last year[75]. - Net cash from operating activities reached RMB 39,507,000, compared to RMB 25,160,000 in 2023, reflecting a significant improvement[75]. - The Group is actively negotiating with banks for the renewal and extension of bank loans and credit facilities[79]. Compliance and Governance - The company has adopted the Model Code for directors' securities transactions, confirming compliance for the six months ended June 30, 2024[48]. - The Group has no significant contingent liabilities as of June 30, 2024[33].

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份內容而產生或 因依賴該等內容而引致的任何損失承擔任何責任。 Vanov Holdings Company Limited 環龍控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2260） 截至2024年6月30日止六個月之中期業績公告 環龍控股有限公司（「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」）截至2024年6月30日止六個月之未經審核簡明綜合 中期業績以及2023年同期之比較數字如下： – 1 – 簡明綜合損益及其他全面收益表 截至2024年6月30日止六個月 | --- | --- | --- | --- | |----------------------------------------------------------------|-------|----------------------------------------------------|--------------------- ...

Financial Performance - Revenue for 2023 was approximately RMB 237.37 million, representing a year-on-year increase of 9.0%; net profit was approximately RMB 53.683 million, a year-on-year increase of 1.3%[8]. - In 2023, the Group achieved revenue of approximately RMB 237.37 million, representing a year-on-year growth of 9.0%[33]. - The net profit for 2023 was RMB 53.68 million, reflecting a year-on-year increase of 1.3%[33]. - The final dividend recommended for the year ended December 31, 2023, is 4 HK cents per share, subject to shareholder approval[69]. - As of December 31, 2023, the Company's reserves available for distribution to shareholders amounted to RMB 73.52 million[71]. - As of December 31, 2023, the total distributable reserves available to shareholders amounted to RMB 73,520,000[110]. Production and Market Trends - The production volume of paper and paperboard reached 144.055 million tonnes, a year-on-year increase of 6.6%[8]. - The total production volume of paper and paperboard in China is projected to reach 140 million tonnes by 2025, driven by recovering global economic activities[14]. - The production of paper and paperboard in China reached 14.41 million tons in 2023, with a year-on-year growth of 6.6%[33]. - The paperboard production is expected to grow due to increased demand from the packaging industry driven by e-commerce and consumer preferences for sustainable materials[59]. - The global paper and paperboard packaging market is expected to reach USD 193.801 billion by 2029, with a CAGR of 3.75%[41]. Technological Innovation and Development - The Group holds 97 patents, including invention, utility model, and design patents, emphasizing its commitment to technological innovation[9]. - The self-developed Paper Machine Efficiency Operation System enhances product quality and customer loyalty, providing data support for product design and optimization[10]. - The Group plans to establish a leading digital and intelligent manufacturing production line for papermaking felts in Shanghai by 2024, aimed at improving product quality and service capabilities[20]. - The Group invested in a digital and intelligent production line in Shanghai, which is expected to commence production by 2024[54]. - The Group's commitment to digital transformation and smart manufacturing is expected to enhance operational efficiency and product quality[63]. - The Group aims to lead the green industrial development in the papermaking felt industry through technological innovation[67]. Strategic Goals and Acquisitions - The Group aims to expand its market through quality improvements and digitalization, while promoting green manufacturing and technology upgrades[17]. - The Group will selectively seek strategic acquisitions to enhance its business capabilities and promote internationalization[19]. - The Group's strategy focuses on "internationalization," "refinement," and "digitalization and systematization" to become a leading supplier of papermaking felts[61]. - The Group plans to seek strategic acquisitions to enhance business capabilities and expand its global market presence[64]. Corporate Governance and Compliance - The Group maintained a high level of corporate governance, with details provided in the Corporate Governance Report[160]. - The Company confirmed compliance with non-competition undertakings during the year ended December 31, 2023[167]. - Independent non-executive Directors confirmed compliance with non-competition undertakings as of December 31, 2023[136]. - The auditor has confirmed that there were no issues with the disclosed continuing connected transactions, ensuring compliance with the Group's pricing policy and relevant agreements[192]. Customer and Supplier Relationships - The Group has established strong relationships with customers, ensuring products are designed and manufactured according to their production needs[91]. - The Group maintains long-term relationships with key suppliers, ensuring a steady supply of raw materials based on quality, supply capacity, and pricing[94]. - The Group's sales and marketing teams regularly visit customers to understand their needs and keep up with product trends[91]. - The Group provides complimentary technical advisory proposals to customers to enhance after-sales service[91]. - The Group's total sales attributable to its five largest customers accounted for approximately 16.7% of total sales for the year, with the largest customer contributing about 6.8%[196]. - The aggregate purchases from the Group's five largest suppliers represented approximately 77.3% of total purchases, with the largest supplier accounting for about 51.8%[196]. Environmental and Social Responsibility - The Group has received recognition as a national-level "Green Factory" and a top "Green Low-Carbon Transformation Enterprise" in Chengdu[9]. - The Group is committed to fulfilling its corporate responsibilities and enhancing its ESG management practices[17]. - The Group completed carbon footprint evaluation and certification, being recognized as a "Top 10 Green and Low-Carbon Transformation Enterprise of Chengdu"[51]. - The paper and packaging industry is transitioning towards sustainability and digitalization from 2020 to 2030, indicating significant development potential[41].

Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 237,370,000, representing a 9.0% increase from RMB 217,756,000 in 2022[6] - Gross profit for the same period was RMB 126,489,000, an increase of 8.3% compared to RMB 116,817,000 in 2022[6] - The total comprehensive income attributable to equity holders of the company was RMB 53,124,000, a slight increase of 1.3% from RMB 52,437,000 in the previous year[6] - Basic and diluted earnings per share for 2023 were RMB 10.99, up 0.5% from RMB 10.93 in 2022[6] - The company's revenue for the year ended December 31, 2023, was approximately RMB 237.4 million, an increase of 9.0% compared to RMB 217.8 million for the year ended December 31, 2022, primarily due to an increase in product sales volume and selling prices[54] - The basic earnings per share for 2023 was RMB 10.99, compared to RMB 10.93 for 2022, reflecting a slight increase in profitability[41] - For the year ended December 31, 2023, the group's gross profit was approximately RMB 126.5 million, an increase of about RMB 9.7 million from RMB 116.8 million for the year ended December 31, 2022[81] - The gross profit margin decreased from approximately 53.6% for the year ended December 31, 2022, to approximately 53.3% for the year ended December 31, 2023, primarily due to increased raw material costs[81] Income and Expenses - Other income for the year was approximately RMB 13.5 million, a decrease of about RMB 6.6 million from RMB 20.1 million in 2022, primarily due to reduced foreign exchange gains[31] - The company's income tax expense for the year was approximately RMB 9.7 million, down from RMB 11.4 million in 2022, mainly due to a decrease in China's dividend withholding tax[34] - The effective tax rate for the year ended December 31, 2023, was approximately 15.3%, down from 17.8% for the year ended December 31, 2022, mainly due to increased deductions for R&D expenses and a decrease in withholding tax on dividends in China[85] - The total financial costs for the year ended December 31, 2023, were approximately RMB 11.7 million, an increase of about RMB 1.2 million compared to RMB 10.5 million for the year ended December 31, 2022[84] Assets and Liabilities - The company's net asset value as of December 31, 2023, was approximately RMB 409.0 million, up from RMB 373.4 million in 2022, showing a solid financial position[61] - The debt-to-asset ratio increased to 82.6% in 2023 from 60.4% in 2022, primarily due to increased project loans[64] - As of December 31, 2023, the group's outstanding bank loans and other borrowings were approximately RMB 326.7 million, an increase from RMB 215.5 million as of December 31, 2022[88] - The net asset liability ratio as of December 31, 2023, was 61.6%, compared to 35.1% as of December 31, 2022[88] - The company's total assets decreased from RMB 631,740,000 to RMB 518,770,000, representing a decline of approximately 18%[120] - The net asset value increased from RMB 373,354,000 to RMB 409,009,000, reflecting a growth of about 9.5%[120] Receivables and Collections - Trade receivables aged 0 to 90 days increased to RMB 113.4 million in 2023 from RMB 94.5 million in 2022, indicating improved collection efficiency[46] - As of December 31, 2023, the group's trade and other receivables amounted to approximately RMB 209.9 million[93] - The company's revenue from trade and other receivables rose from RMB 181,543,000 to RMB 209,932,000, an increase of approximately 15.6%[125] - Total receivables, after accounting for expected credit loss provisions, rose to RMB 200,801 thousand in 2023 compared to RMB 171,249 thousand in 2022, marking an increase of 17.2%[130] - Trade receivables from third parties increased to RMB 172,449 thousand in 2023 from RMB 152,282 thousand in 2022, representing a growth of 13.5%[130] - The amount of receivables aged 0 to 30 days decreased to RMB 7,952 thousand in 2023 from RMB 9,285 thousand in 2022, a decline of 14.4%[131] - Receivables aged 31 to 60 days increased significantly to RMB 6,446 thousand in 2023 from RMB 4,450 thousand in 2022, reflecting a growth of 45%[131] - Receivables aged 61 to 90 days rose to RMB 4,997 thousand in 2023, up from RMB 2,804 thousand in 2022, indicating an increase of 78.3%[131] - The total amount of receivables over 365 days remained relatively stable at RMB 408 thousand in 2023 compared to RMB 409 thousand in 2022[131] - The total trade receivables, including all aging categories, amounted to RMB 26,040 thousand in 2023, up from RMB 20,768 thousand in 2022, representing a growth of 25.4%[131] - Expected credit loss provisions for trade receivables increased to RMB 5,202 thousand in 2023 from RMB 4,312 thousand in 2022, an increase of 20.6%[130] - Other receivables, including tax receivables, rose to RMB 3,204 thousand in 2023 from RMB 178 thousand in 2022, a significant increase of 1690.4%[130] - The total amount of prepayments decreased slightly to RMB 1,213 thousand in 2023 from RMB 1,379 thousand in 2022, a decline of 12.1%[130] Operational Plans and Innovations - The company plans to expand production capacity in three phases from 2021 to 2024 to meet the anticipated rising demand for high-speed paper blankets, with the PM3 production line expected to commence in the first half of 2024[27] - The company is seeking strategic acquisitions to supplement its business and strategic focus, particularly in vertical expansion within the supply chain[28] - The company plans to continue upgrading its digital platform for optimizing paper machine operational efficiency, aiming to enhance data collection and analysis capabilities in 2024[52] - The PM3 project in Shanghai is progressing as planned, aiming to establish a leading production base for paper machine blankets in China, which will enhance product quality and stability[51] - The company is focused on technological innovation, having developed a digital platform for optimizing paper machine efficiency, which supports comprehensive service for customers[50] Employee and Operational Costs - The group had 357 employees as of December 31, 2023, compared to 327 employees as of December 31, 2022, with total employee costs amounting to approximately RMB 41.2 million[94] - Sales and distribution expenses for the year ended December 31, 2023, were approximately RMB 22.4 million, representing 9.4% of revenue, an increase from RMB 21.6 million in 2022[56] Dividends and Shareholder Information - The company plans to distribute a final dividend for the year ending December 31, 2023, with the record date set for July 2, 2024[104] - The unutilized net proceeds from the share issuance as of December 31, 2023, were approximately HKD 16.4 million, expected to be utilized by December 31, 2024[98] - The group plans to allocate 20% of the net proceeds to enhance R&D capabilities, with approximately HKD 6.7 million remaining to be utilized by December 31, 2024[97] Compliance and Governance - The company has maintained sufficient public float as per listing rules[106] - No stock options were granted, exercised, canceled, or expired from the adoption of the stock option plan until December 31, 2023[119] - The company has not engaged in any arrangements that would allow directors to benefit from acquiring shares or debt securities of the company[101] - There have been no significant post-balance sheet events reported since December 31, 2023[109]

Financial Performance - In the first half of 2023, the Group achieved revenue of approximately RMB86.5 million, representing a growth of 11.9% year-on-year[17]. - Net profit for the first half of 2023 increased by 34.5% compared to the previous year, indicating strong financial performance[17]. - The Group's gross profit for the six months ended June 30, 2023, was approximately RMB 42.7 million, up by approximately RMB 3.0 million from RMB 39.7 million for the same period in 2022, with a gross profit margin decreasing from 51.3% to 49.3%[63]. - Profit before income tax for the six months ended June 30, 2023, was RMB 22,526,000, compared to RMB 17,627,000 in 2022, reflecting a growth of 27.5%[170]. - Profit and total comprehensive income for the period was RMB 20,458,000, an increase of 34.8% from RMB 15,212,000 in the previous year[170]. - Earnings per share attributable to equity holders of the Company increased to RMB 20,287,000 for the six months ended June 30, 2023, compared to RMB 15,066,000 in 2022[170]. Operational Efficiency - The production-to-sales rate for the Group was 100% in the first half of 2023, reflecting efficient operations[35]. - Selling and distribution expenses for the six months ended June 30, 2023, were approximately RMB 7.1 million, accounting for 8.2% of revenue, a decrease from RMB 7.5 million in the same period of 2022[46]. - The Group's performance in the first half of 2023 provides a solid foundation for achieving its annual performance targets[35]. Industry Overview - According to the China Papermaking Industry Annual Report 2022, the production volume of paper and paperboard in China was approximately 124.3 million tons, an increase of 2.64% over the previous year[14]. - The operating revenue from the entire papermaking industry in China was approximately RMB1.52 trillion, representing a year-on-year increase of 0.44%[14]. - The total consumption volume of paper and paperboard in China showed a year-on-year decrease of 1.94% in 2022[14]. - The GDP of China grew by 5.5% year-on-year in the first half of 2023, indicating a stable economic environment[34]. Financial Position - As of June 30, 2023, the Group's net assets reached approximately RMB 375.8 million, compared to RMB 373.4 million as of December 31, 2022[59]. - The current ratio of the Group as of June 30, 2023, was 211.6%, an increase from 191.7% as of December 31, 2022[59]. - The Group's outstanding bank borrowings and other borrowings were approximately RMB 286.3 million as of June 30, 2023, up from approximately RMB 215.5 million as of December 31, 2022[77]. - The net gearing ratio of the Group as of June 30, 2023, was 49.2%, an increase from 35.1% as of December 31, 2022[79]. - The Group's total assets as of June 30, 2023, were approximately RMB 375.8 million, compared to RMB 373.4 million as of December 31, 2022[79]. - The Group's trade and other receivables were approximately RMB 160.5 million for the six months ended June 30, 2023[96]. Capital Expenditure and Investments - The company raised approximately HK$92.8 million from the share offer, with the offer price set at HK$1.22 per share[104]. - Utilised net proceeds include HK$38.8 million for purchasing machinery to upgrade production sites, which is 40% of the planned allocation[112]. - The company plans to utilise the remaining unutilised net proceeds by December 31, 2023[116]. - The company incurred RMB 68,864,000 for the acquisition of property, plant, and equipment during the six months ended June 30, 2023, compared to RMB 12,696,000 in the previous year, highlighting a substantial increase in capital expenditure[188]. Corporate Governance - The company has complied with the Corporate Governance Code during the six months ended June 30, 2023[153]. - The Audit Committee reviewed the Group's unaudited interim results and confirmed compliance with applicable accounting standards and Listing Rules[162]. Shareholder Information - As of June 30, 2023, Perfect Angle holds 269,960,400 shares, representing approximately 55.84% of the company's total shares[146]. - Huanlong Lixin is an indirect non-wholly owned subsidiary of the company, with 99% equity held by Huanlong Funeng and 1% by Huanlong Industrial Group Co., Ltd[135]. - The company’s immediate holding company is Perfect Angle Limited, incorporated in the British Virgin Islands, with controlling parties being Ms. Shen Genlian and Mr. Zhou Jun[195].

Financial Performance - For the six months ended June 30, 2023, the company reported revenue of RMB 86,541,000, an increase of 11.2% compared to RMB 77,372,000 for the same period in 2022[4] - Gross profit for the same period was RMB 42,662,000, representing a gross margin of 49.3%, up from RMB 39,685,000 in 2022[4] - The net profit attributable to equity holders for the six months ended June 30, 2023, was RMB 20,287,000, a 34.5% increase from RMB 15,066,000 in 2022[4][15] - Basic earnings per share for the period was RMB 4.20, compared to RMB 3.16 for the same period last year, reflecting a 32.9% increase[4][15] - The net profit for the same period increased by 34.5%, supporting the company's annual operational goals[56] - Gross profit for the six months ended June 30, 2023, was approximately RMB 427 million, up from RMB 397 million in the same period of 2022, while the gross margin decreased from approximately 51.3% to 49.3% due to rising costs of imported raw materials[61] Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 601,297,000, an increase from RMB 518,770,000 as of December 31, 2022[6] - Cash and cash equivalents increased to RMB 104,237,000 from RMB 85,618,000 at the end of 2022, indicating improved liquidity[5] - The company’s non-current assets rose to RMB 446,728,000, up from RMB 382,210,000 at the end of 2022, reflecting ongoing investments[5] - The company has maintained a stable level of non-current liabilities, with bank borrowings at RMB 202,907,000 as of June 30, 2023, compared to RMB 104,500,000 at the end of 2022[19] - The group's total bank borrowings and other loans as of June 30, 2023, were approximately RMB 286.3 million, an increase from RMB 215.5 million as of December 31, 2022, resulting in a net debt-to-equity ratio of 49.2% compared to 35.1% at the end of 2022[74] - The group's debt-to-equity ratio as of June 30, 2023, was approximately 78.8%, up from 60.4% as of December 31, 2022, primarily due to an increase in long-term borrowings[77] Revenue Breakdown - Revenue from packaging paper blankets was RMB 48,843,000, down 11.5% from RMB 55,255,000 in 2022[25] - Special paper blankets revenue increased significantly to RMB 16,178,000, up 35.5% from RMB 11,910,000 in 2022[25] - The group's revenue for the first half of 2023 was RMB 86,541,000, an increase of 11.2% compared to RMB 77,372,000 in the same period of 2022[25] Expenses and Costs - The sales and distribution expenses for the six months ended June 30, 2023, were approximately RMB 71 million, a decrease from RMB 75 million for the same period in 2022, representing about 8.2% of revenue[64] - The group's administrative and other operating expenses for the six months ended June 30, 2023, were approximately RMB 15.4 million, a decrease from RMB 18.6 million for the same period in 2022, primarily due to one-time listing expenses incurred in 2022[65] - Total financial costs for the six months ended June 30, 2023, were approximately RMB 5.8 million, an increase of RMB 0.8 million compared to RMB 5.0 million for the same period in 2022, mainly due to increased loan interest from bank borrowings[70] - The group's income tax expense for the six months ended June 30, 2023, was approximately RMB 2.1 million, a decrease from RMB 2.4 million for the same period in 2022, with an effective tax rate of 9.2% compared to 13.7% in 2022[71] Strategic Focus and Investments - The company continues to focus on the design, manufacturing, and sales of paper blankets, indicating a commitment to its core business operations[9] - The company plans to strengthen R&D capabilities with 20% of the raised funds allocated, amounting to RMB 19.4 million, expected to be fully utilized by December 31, 2023[32] - The company plans to expand production capacity in three phases from 2021 to 2024 to meet the anticipated increase in demand for high-speed paper machine blankets[59] - The company is seeking strategic acquisitions to supplement its business and strategic focus, considering financial and competitive conditions of potential targets[59] - The company has over 110 authorized patents and is focused on the commercialization of R&D to enhance its competitive edge[57] Staffing and Employee Costs - The group employed 343 staff as of June 30, 2023, compared to 315 staff as of June 30, 2022, with total employee costs for the period amounting to approximately RMB 18.7 million[85] Other Information - The board did not recommend an interim dividend for the first half of 2023, consistent with the previous year[49] - The company has maintained sufficient public float as per the listing rules[43] - No significant post-period events occurred after June 30, 2023, until the announcement date[37] - As of June 30, 2023, the group had no significant contingent liabilities[81] - There were no major investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the six months ended June 30, 2023[83]