Summary of Key Points Core Viewpoint - On July 7, 34 Hong Kong-listed companies conducted share buybacks, totaling 30.99 million shares and an aggregate amount of HKD 921 million [1][2]. Group 1: Buyback Details - Tencent Holdings repurchased 1.002 million shares for HKD 501 million, with a highest price of HKD 502.000 and a lowest price of HKD 494.400, bringing its total buyback amount for the year to HKD 38.542 billion [1][2]. - AIA Group repurchased 5.5 million shares for HKD 377 million, with a highest price of HKD 69.150 and a lowest price of HKD 68.050, totaling HKD 16.352 billion in buybacks for the year [1][2]. - Founder Holdings repurchased 10.386 million shares for HKD 1.174 million, with a highest price of HKD 1.150 and a lowest price of HKD 1.110, accumulating HKD 3.541 million in buybacks for the year [1][2]. Group 2: Buyback Rankings - The highest buyback amount on July 7 was from Tencent Holdings at HKD 501 million, followed by AIA Group at HKD 377 million [1][2]. - In terms of share quantity, Founder Holdings had the most significant buyback with 10.386 million shares, followed by AIA Group with 5.5 million shares and China Electric Power Technology with 2.26 million shares [1][2].

Production Capacity and Expansion - The design capacity for domestic polyester products is 910,000 tons per year, with BOPET film capacity at 702,500 tons per year, making it one of the largest polyester film manufacturers in China[7]. - The company has established a production facility in Vietnam with a design capacity of 554,300 tons per year for polyester filament, including 184,000 tons for fully drawn yarn and 170,300 tons for stretch yarn[9]. - An investment of approximately $73.9 million was made in Vietnam to develop new production facilities for polyester bottle chips, with a design capacity of 300,000 tons per year, which commenced commercial production in July 2023[9]. - The company plans to invest approximately $320 million from 2020 to April 2023 to establish new polyester film production lines, which will add a capacity of 400,000 tons per year, fully operational by November 2023[10]. - The company is set to invest approximately RMB 2.4 billion from 2025 to 2027 to expand its nylon business, with an estimated total capacity of 120,000 tons per year expected to gradually commence production from 2026[10]. - The design capacity for domestic polyester filament is 2,726,400 tons per year, with a combined design capacity of 1,716,400 tons for stretch yarn, fully drawn yarn, and pre-oriented yarn, making it the largest differentiated chemical fiber production base in Fujian Province[6]. - The company has invested approximately $185 million to establish production lines for polyester industrial yarn, with a total capacity of 250,000 tons per year, which began commercial production on July 17, 2020[9]. - Baihong's polyester film production expansion plan completed with a designed capacity of 255,000 tons per year[13]. - Baihong Vietnam established with an investment of approximately $220 million, targeting an annual capacity of 250,000 tons for polyester bottle chips[13]. - New polyester production line investment of about $230 million planned from 2019 to 2021, estimated annual capacity of 255,000 tons[15]. - Baihong's F District in Fujian officially launched a project with an annual capacity of 250,000 tons for polyester industrial yarn in July 2020[15]. - Baihong's G District achieved a total designed capacity of 500,000 tons per year with the launch of 6 production lines for polyester film[15]. - Baihong's G District estimated to reach an annual capacity of 255,000 tons for functional eco-friendly polyester film, with two production lines already in operation[15]. Financial Performance - Revenue for the year ended December 31, 2024, was RMB 20,631,678 thousand, representing a 16.2% increase from RMB 17,755,491 thousand in 2023[19]. - Gross profit increased by 49.7% to RMB 1,572,346 thousand from RMB 1,050,059 thousand[19]. - Operating profit rose by 82.7% to RMB 971,087 thousand compared to RMB 531,517 thousand in the previous year[19]. - Net profit for the year was RMB 747,901 thousand, a significant increase of 111.6% from RMB 353,398 thousand[19]. - Total assets increased to RMB 28,214,782 thousand, with current assets rising by 19.6% to RMB 15,904,789 thousand[19]. - Total equity increased by 7.4% to RMB 10,989,593 thousand from RMB 10,231,260 thousand[19]. - The company achieved a gross margin of 7.6%, up from 5.9% in the previous year[19]. - The return on equity improved to 6.8% from 3.5% in 2023[19]. - The company’s revenue for 2024 was RMB 20,631,678,000, an increase of 16.2% compared to RMB 17,755,491,000 in 2023[64]. - Sales revenue from polyester products reached RMB 9,956,035,000, representing a 38.6% increase from RMB 7,182,898,000 in 2023[67]. - The sales volume of polyester products increased by 40.1%, from 1,059,755 tons in 2023 to 1,485,129 tons in the current year[67]. - Revenue from differentiated products was RMB 11,021,919,000, accounting for 53.4% of total revenue[63]. - Research and development expenses amounted to RMB 567,495,000, representing 2.8% of total revenue[63]. - The average selling price of polyester products decreased by 1.1% to RMB 6,704 per ton, compared to RMB 6,778 per ton in 2023[67]. - The average selling price of polyester filament increased by 1.6% to RMB 8,740 per ton, compared to RMB 8,603 per ton in 2023[65]. - Sales revenue from polyester industrial yarn was RMB 1,657,624,000, with an average selling price of RMB 7,558 per ton[68]. - The annual profit for 2024 was RMB 747,901,000, representing a 111.6% increase from RMB 353,398,000 in 2023, with a net profit margin rising to 3.6% from 2.0%[110]. Market Trends and Strategic Focus - The company aims to capture growth opportunities in the synthetic fiber market, which is a global trend, by expanding its nylon business[10]. - The company has introduced advanced German BOPET film production lines and R&D equipment to target the high-end functional polyester film market domestically[7]. - The company has a strong market position in the polyester film sector, leveraging its existing scale and expertise to benefit from market growth[10]. - The consumption of polyester film in China has been steadily increasing, with the company leveraging its existing scale and expertise to capture market growth[34]. - The Chinese outdoor sports market is expected to approach RMB 600 billion, presenting significant growth opportunities for synthetic fibers[34]. - The textile industry in China is experiencing a recovery, with domestic sales gradually rebounding due to government policies promoting local consumption[52]. - The company aims to enhance its market position as one of China's major manufacturers by expanding its nylon business[34]. - The company aims to leverage its competitive advantages in the Vietnamese textile and polyester bottle chip market[61]. - The group anticipates stable business growth driven by technological innovation and favorable polyester product pricing trends[124]. Corporate Governance and Management - The board consists of three executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2024[132]. - The company has complied with all provisions of the Corporate Governance Code as of December 31, 2024[130]. - Independent non-executive directors play a crucial role in providing independent opinions on the company's strategy and performance[133]. - The company has established written guidelines for employees regarding securities trading to prevent insider trading violations[131]. - The board meets regularly to review the company's financial and operational performance, with attendance records disclosed in the corporate governance report[142]. - The company has a mechanism to ensure independent views are provided to the board, with a majority of non-executive and independent non-executive directors[135]. - The company has received annual confirmations of independence from all current independent non-executive directors[133]. - The chairman and CEO roles are separated to ensure a balance of power and authority within the board[144]. - The company has a policy to manage conflicts of interest among directors[140]. - All directors have the right to seek independent professional advice at the company's expense if needed[141]. - The board has adopted a diversity policy to ensure a balanced mix of executive and non-executive directors, including independent non-executive directors, to enhance governance and operational effectiveness[151]. - As of December 31, 2024, the board includes one female director, achieving gender diversity[153]. - The company has a full-time employee gender distribution of 70% male and 30% female, promoting equal opportunities in recruitment and retention[156]. - The remuneration committee reviewed the compensation policy for 2024 and held one meeting to approve the remuneration plans for directors and senior management[163]. - The nomination committee, consisting mainly of independent non-executive directors, is responsible for reviewing the board diversity policy and measurable targets[164]. - The company has established appropriate insurance coverage for potential legal actions against its directors and executives[149]. - The board's diversity policy includes measurable targets based on various criteria such as gender, age, race, and professional experience[152]. - The company encourages directors to participate in professional development courses to enhance their knowledge and skills[148]. - The board is committed to maintaining a strong element of independence, ensuring that independent non-executive directors have sufficient expertise and numbers to provide impactful opinions[153]. - The company has confirmed compliance with the corporate governance code regarding the rotation of directors every three years[158]. Internal Controls and Audit - The audit committee held four meetings during the year ending December 31, 2024, with all members attending all sessions[170]. - The company paid RMB 1,613,000 for audit services in 2024, an increase from RMB 1,593,000 in 2023[177]. - The company has established written policies and procedures for internal control efficiency, which are regularly reviewed and improved[178]. - The company’s independent internal audit department assists the board in evaluating the effectiveness of its internal control systems[178]. - The audit committee is responsible for reviewing the financial reporting process and risk management systems[168]. - The company’s external auditor is responsible for ensuring that the financial statements fairly reflect the group's financial position[175]. - The company has a policy for identifying, assessing, and managing significant risks to achieve operational objectives[178]. Employee Development and Training - The company emphasizes employee development and training, believing that employees are a key factor in its success[35]. - The company has partnered with Donghua University to establish a talent practice base, enhancing its R&D capabilities[54]. - The company’s secretary completed no less than 15 hours of relevant professional training during the year[180]. - The company has mechanisms for employees and business associates to report misconduct confidentially[186]. Communication with Shareholders - The company emphasizes the importance of clear, timely, and effective communication with shareholders and investors to build confidence and attract new investments[183]. - The board of directors will attend the annual general meeting scheduled for May 23, 2025, to address shareholder questions[183]. - The company has established multiple channels for ongoing communication with shareholders, including direct inquiries to the investor relations department[186]. - The company has a shareholder communication policy to ensure all shareholders can access accurate and comprehensible information[185]. - The company maintains high transparency by publishing annual reports, interim reports, and other communications on its website[183]. - The board regularly meets with institutional investors, financial analysts, and media to enhance understanding of the company's strategies and developments[184].

Financial Performance - For the fiscal year ending December 31, 2024, revenue reached RMB 20.631678 billion, an increase of 16.2% compared to RMB 17.755491 billion for the fiscal year ending December 31, 2023[4] - Profit for the fiscal year ending December 31, 2024, was RMB 747.901 million, representing a significant increase of 111.6% from RMB 353.398 million in the previous year[4] - Earnings per share for the fiscal year ending December 31, 2024, was RMB 0.35, up from RMB 0.17 in the previous year[4] - The company reported total comprehensive income attributable to owners of the company for the fiscal year ending December 31, 2024, of RMB 769.708 million, compared to RMB 405.588 million in the previous year[7] - The annual profit for 2024 was RMB 747,901,000, a substantial increase of 111.6% from RMB 353,398,000 in 2023, with a net profit margin rising to 3.6%[114] Revenue Breakdown - Revenue from polyester products reached RMB 9,956,035,000, a significant increase of 38.8% compared to RMB 7,182,898,000 in the previous year[24] - Revenue from the Chinese market accounted for RMB 14,900,336,000, representing 72.2% of total revenue, up from RMB 13,512,221,000 in 2023[24] - Overseas sales revenue increased by 35.1% from RMB 4,243,270,000 in 2023 to RMB 5,731,342,000 in the current year, accounting for 27.8% of total sales[87] - Domestic sales in Fujian province accounted for 46.3% of total sales, amounting to RMB 9,557,898,000, while Guangdong province contributed 13.1% with RMB 2,706,070,000[88] Cost and Expenses - The sales cost for 2024 was RMB 19,059,332,000, up 14.1% from RMB 16,705,432,000 in 2023, primarily due to increased sales volume[90] - Selling and distribution expenses rose by 19.2% to RMB 279,109,000 in 2024, primarily due to increased transportation costs from expanded sales outside Fujian province[108] - Administrative expenses increased by 18.3% to RMB 763,936,000 in 2024, mainly due to higher R&D expenditures[109] Assets and Liabilities - The net cash and cash equivalents as of December 31, 2024, amounted to RMB 227.528 million, an increase from RMB 158.138 million in the previous year[9] - The total assets less current liabilities as of December 31, 2024, were RMB 11.48724 billion, compared to RMB 10.718657 billion in the previous year[10] - The total liabilities as of December 31, 2024, were RMB 17,225,189,000, with a debt-to-equity ratio of 156.7%[117] Investments and Future Plans - The company plans to invest approximately RMB 2,395,730,000 in a new production line from 2025 to 2027, with an expected annual capacity of 120,000 tons starting in 2026[56] - The company plans to invest approximately $73.9 million in Vietnam for new polyester bottle chip production facilities, expected to have an annual capacity of 300,000 tons, gradually starting commercial production in July 2023[68] - An investment of approximately $320 million is planned for establishing polyester film production lines, with an additional annual production capacity of 400,000 tons expected to be operational by November 2023[68] - The company anticipates investing approximately 2.396 billion RMB from 2025 to 2027 to expand nylon production capacity, estimated at 120,000 tons annually, with gradual commercial production starting in 2026[128] Research and Development - Research and development costs for the year were RMB 567,707,000, an increase of 24.5% from RMB 455,857,000 in 2023[33] - The company has received 135 national patents and has applied for 184 additional patents, with 161 patented products currently in production and sales[76] - The company emphasizes talent acquisition and training, collaborating with Donghua University to establish a talent practice base[63] Market and Industry Insights - The textile industry in China is projected to achieve total operating revenue and profit of approximately RMB 2.4 trillion and RMB 87 billion, respectively, for the year ending December 31, 2024[60] - The overall raw material prices for textile products have decreased by approximately 0.6% year-on-year from January to December 2024[60] - The company’s management believes that the impact of the pandemic on the Chinese economy is temporary and does not alter the long-term growth fundamentals[58] Shareholder Information - The company has not declared a final dividend for the year ending December 31, 2024, consistent with 2023[39] - The board does not recommend any final dividend for the year ending December 31, 2024[130] - The company repurchased a total of 2,948,000 shares during the year ended December 31, 2024, with a total expenditure of HKD 12,312,680[138] Production and Capacity - The company has successfully launched a polyester industrial yarn project with an annual capacity of 250,000 tons in July 2022, positioning itself among the top ten polyester industrial yarn manufacturers in China[69] - The G area project has an annual production capacity of 255,000 tons of functional environmentally friendly polyester film, with two production lines having a capacity of 70,000 tons launched in December 2020[66] - The company has invested in a 700,000-ton differentiated chemical fiber project in Vietnam, which has contributed to the growth of overseas sales[87]

容 簡宏賣業控股有限公司 Holon INDUSTRIAL Holdings Lim (Incorporated in the Cayman Islands with limited liability) (於開曼群島註冊成立之有限公司) Stock Code 股份代號: 2299 2024 Interim Report 中期報告 0 目錄 | --- | |---------------------------------------| | | | 目錄 | | 公司簡介 | | 公司資料 | | 財務摘要 | | 公司架構 | | 滌綸長絲及聚酯薄膜之生產過程 | | 生產廠區 | | 管理層討論及分析 | | 未經審核簡明綜合收益表 | | 未經審核簡明綜合全面收益表 | | 未經審核簡明綜合財務狀況表 | | 未經審核簡明綜合權益變動表 | | 未經審核簡明綜合現金流量表 | | 未經審核簡明綜合財務報表附註 一般資料 | 1 2 4 5 6 7 8 10 32 33 34 36 37 38 60 企業管治 64 使命 成為全球消費品原料優質 供應商致力於為人民提供 健康綠色產品 2 公司簡介 百宏實 ...

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佈之內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈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。 BILLION INDUSTRIAL HOLDINGS LIMITED 百宏實業控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：2299） 截至二零二四年六月三十日止六個月之中期業績公佈 | --- | --- | |-------|-------------------------------------------------------------------| | | | | 摘要 | | | • | 二零二四年上半年收入達人民幣 106.20 億元，較去年同期上升 41.5% 。 | | • | 二零二四年上半年溢利達人民幣 3.27 億元，較去年同期上升 62.4% 。 | | • | 每股盈利達人民幣 0.15 元。 | — 1 — 百宏實業控股有限公司（「本公司」）董事會（「董事會」）欣然宣佈，本公司及其附屬公司（「本 集團」）截至二零二四年六月三十日止六個月之未經審核中期業 ...

Production Capacity and Expansion - The design capacity for domestic polyester products is 910,000 tons per year, with BOPET film capacity at 702,500 tons, making it one of the largest polyester film manufacturers in China [4]. - The company invested approximately $185 million to establish a production line for polyester industrial yarn, with a total capacity of about 250,000 tons per year, which commenced commercial production on July 17, 2020 [6]. - The company plans to invest around $320 million from 2020 to 2023 to expand its polyester film production lines, with an additional capacity of 400,000 tons per year, fully operational by November 2023 [6]. - The company’s domestic polyester filament design capacity is 2,726,400 tons per year, with differentiated chemical fiber production being the largest in Fujian Province [4]. - The polyester film production expansion plan was completed in 2016, achieving a design capacity of 255,000 tons per year [9]. - The company established a new facility in Vietnam with an annual capacity of 250,000 tons for polyester bottle sheet production, with an investment of approximately $220 million [9]. - The company’s new manufacturing facility for polyester industrial yarn is expected to significantly enhance its market position in the rapidly growing East China market [6]. - The company has introduced advanced German BOPET film production lines and R&D equipment to target the high-end functional polyester film market [4]. - The company’s polyester film production line is designed to meet stringent environmental requirements, ensuring high-quality output for various applications [6]. - The company launched a new polyester fiber project, developing 1.2D ultra-fine short fibers, which can effectively replace cotton demand [12]. - The company plans to expand its production capacity with a new functional polyester film project estimated at 330,000 tons annually [12]. Financial Performance - Revenue for the year 2023 reached RMB 17,755,491 thousand, representing a 14.1% increase from RMB 15,564,988 thousand in 2022 [17]. - Gross profit decreased to RMB 1,050,059 thousand, a decline of 26.3% compared to RMB 1,423,945 thousand in the previous year [17]. - Operating profit fell by 44.7% to RMB 531,517 thousand from RMB 961,111 thousand in 2022 [17]. - Net profit for the year was RMB 353,398 thousand, down 46.1% from RMB 655,818 thousand in 2022 [17]. - Current assets increased by 67.8% to RMB 487,397 thousand from RMB 290,409 thousand in the previous year [18]. - Total equity rose to RMB 10,231,260 thousand, a 4.1% increase from RMB 9,826,877 thousand in 2022 [18]. - The company achieved a gross margin of 5.9%, down from 9.1% in the previous year [18]. - Operating margin decreased to 3.0% from 6.2% in 2022 [18]. - The company has achieved full-process intelligent automated production, enhancing product quality and production capacity, demonstrating strong risk resistance during the pandemic [21]. - The company’s brand value has significantly increased, being recognized as one of the top brands in Fujian, which supports its high-quality development [23]. - The company is focusing on the development of differentiated chemical fibers and functional environmentally friendly polyester film products, aligning with its vision of becoming a quality supplier of global consumer goods [23]. Market and Industry Trends - The textile industry in China reported total operating income of approximately RMB 2.29 trillion and profits of RMB 84 billion for the year ending December 31, 2023 [20]. - The domestic demand and consumption upgrades are the main driving forces for the textile industry, supported by policies such as the three-child policy and urbanization [21]. - The global economic outlook is expected to gradually improve in 2024, supported by fiscal and monetary policy measures [30]. - The textile industry in China is expected to develop under a stable growth framework, aided by various government support policies [31]. - The profit of large industrial enterprises in China from January to December 2023 exceeded RMB 7.6 trillion, showing a year-on-year decline of about 2.3% [30]. - The price of raw materials for textile products decreased by approximately 3.0% year-on-year from January to December 2023 [32]. Research and Development - The company has implemented a talent strategy focused on attracting and retaining skilled personnel, collaborating with Donghua University to establish a talent practice base [34]. - The company has established a new production facility in Vietnam with an expected annual capacity of 300,000 tons, which began commercial production in July 2023 [36]. - The company has obtained 134 national patents and has applied for an additional 168 patents, with 140 patented products currently in production and sales [38]. - The revenue from differentiated products was RMB 10,142,455,000, accounting for 57.1% of total revenue, with R&D expenses at RMB 455,857,000, representing 2.6% of total revenue [38]. - The demand and application prospects for ES fiber are expected to broaden, leading to higher profits and strengthening the company's industry position [34]. Corporate Governance - The board consists of two executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2023 [89]. - All directors have confirmed compliance with the established code of conduct for securities trading during the fiscal year ending December 31, 2023 [88]. - The board held meetings to discuss overall strategy and operational performance, with attendance records showing full participation from all directors in board and shareholder meetings [98]. - Independent non-executive directors play a crucial role in providing unbiased opinions on the group's strategy and performance, ensuring shareholder interests are safeguarded [90]. - The company has established a mechanism to ensure independent viewpoints are provided to the board, with a majority of non-executive and independent non-executive directors [92]. - The company has received annual confirmations of independence from all current independent non-executive directors, meeting regulatory requirements [90]. - The board is responsible for establishing internal controls and risk management systems, regularly discussing their effectiveness with management [89]. - The company has adopted a board diversity policy to ensure a balanced mix of skills, experience, and perspectives among board members [105]. - The board aims to appoint at least one female director by December 31, 2024, to enhance gender diversity [106]. - The remuneration committee reviewed the company's compensation policy for 2023 and approved the remuneration plans for directors and senior management [113]. Shareholder Communication and Transparency - The company is committed to maintaining high transparency and effective communication with investors and shareholders, ensuring timely access to accurate and comprehensive information [133]. - The board of directors will attend the annual general meeting scheduled for May 27, 2024, to address shareholder questions [133]. - The company has established multiple channels for ongoing communication with shareholders, including direct inquiries to the investor relations department [135]. - The company has a shareholder communication policy to ensure all shareholders can access accurate and understandable public information [135]. - The company has appointed a share transfer agent to assist shareholders with registration and related matters [137]. - The company has mechanisms for employees and business associates to report any misconduct or malpractice confidentially [138]. Employee and Management Practices - The company emphasizes employee development and work-life balance, ensuring fair treatment and training opportunities for all staff [24]. - The company employs 9,202 staff as of December 31, 2023, with compensation based on performance, professional experience, and market conditions [82]. - The company recognizes the importance of gender diversity at the board level and continues to seek female candidates [106]. - The company’s remuneration policy is based on individual performance and salary trends in Hong Kong and China [180]. - The company may distribute discretionary bonuses to employees based on the group's profitability [180]. Related Party Transactions - Total sales from related party transactions for the year ended December 31, 2023, reached RMB 196,426,000, within the approved annual cap of RMB 621,000,000 [195]. - Independent non-executive directors confirmed that related party transactions were conducted in the normal course of business and on fair terms [198]. - The company's auditor confirmed that the related party transactions were approved by the board and complied with the company's pricing policy [198]. Miscellaneous - The company made charitable donations totaling approximately RMB 219,000 for the year ended December 31, 2023, compared to RMB 164,000 in 2022 [158]. - The company has maintained compliance with relevant laws and regulations, with no significant violations reported during the review year [151]. - The company has not experienced any substantial disputes with suppliers, customers, or other stakeholders during the review year [152]. - The nature of the company's main business has not undergone significant changes as of December 31, 2023 [150].

Financial Performance - For the year ended December 31, 2023, revenue reached RMB 17.755 billion, an increase of 14.1% compared to RMB 15.565 billion for the year ended December 31, 2022[2]. - Profit for the year ended December 31, 2023, was RMB 353.4 million, a decrease of 46.1% from RMB 655.8 million for the year ended December 31, 2022[2]. - Earnings per share for the year ended December 31, 2023, was RMB 0.17, down from RMB 0.31 in the previous year[2]. - Gross profit for the year ended December 31, 2023, was RMB 1.050 billion, compared to RMB 1.424 billion in 2022, reflecting a decline in gross margin[4]. - Operating profit for the year ended December 31, 2023, was RMB 531.5 million, down from RMB 961.1 million in the previous year[4]. - Other comprehensive income for the year ended December 31, 2023, totaled RMB 52.2 million, down from RMB 67.7 million in 2022[5]. - The group reported a decrease in financial costs to RMB 120.2 million in 2023 from RMB 216.3 million in 2022, indicating improved financial management[4]. - The company's profit attributable to owners for the year 2023 was RMB 353,398,000, a decrease of 46.1% compared to RMB 655,818,000 in 2022[28]. - The group's annual profit for 2023 was RMB 353,398,000, a decrease of 46.1% from RMB 655,818,000 in 2022, with a net profit margin dropping from 4.2% to 2.0%[86]. Revenue Breakdown - Total revenue for the year ended December 31, 2023, was RMB 17,755,491,000, an increase of 14.1% from RMB 15,564,988,000 in 2022[13]. - Revenue from polyester products reached RMB 7,182,898,000, up 27.4% from RMB 5,636,081,000 in the previous year[13]. - Revenue from polyester filament products was RMB 8,712,597,000, an increase of 8.6% compared to RMB 8,022,664,000 in 2022[13]. - The company generated RMB 10,142,455,000 in revenue from differentiated products, accounting for 57.1% of total revenue[50]. - Overseas sales revenue increased by 12.3% to RMB 4,243,270,000, accounting for 23.9% of total revenue[58]. - Domestic sales in Fujian province accounted for 48.6% of total revenue, amounting to RMB 8,615,788,000[59]. Cost and Inventory Management - The total cost of inventories for the year was RMB 16,705,432,000, an increase from RMB 14,141,043,000 in the previous year[22]. - Sales cost for the year was RMB 16,705,432,000, an 18.1% increase from RMB 14,141,043,000 in the previous year[60]. - The total inventory as of December 31, 2023, was RMB 4,474,770,000, an increase of 11.5% from RMB 4,011,391,000 in 2022[29]. - The average selling cost of polyester products decreased by 7.7% to RMB 6,472 per ton, primarily due to lower raw material prices[62]. - Inventory turnover days increased to 92.7 days in 2023 from 88.0 days in 2022, attributed to insufficient orders due to market conditions[88]. Assets and Liabilities - The net current liabilities as of December 31, 2023, were approximately RMB 2.256 billion, an improvement from RMB 2.614 billion in 2022[9]. - Total assets less current liabilities amounted to RMB 10.719 billion as of December 31, 2023, compared to RMB 10.117 billion in the previous year[6]. - The group's total liabilities as of December 31, 2023, were RMB 16,037,188,000, with a debt-to-equity ratio of 156.7%[89]. - Cash and cash equivalents decreased to RMB 158,138,000 in 2023 from RMB 231,620,000 in 2022[37]. Production and Capacity Expansion - The company plans to invest approximately USD 320,000,000 to establish a polyester film production line, expected to add an annual production capacity of 400,000 tons[49]. - The new production facility for polyester bottle chips in Vietnam has an expected annual capacity of 300,000 tons and began commercial production in July 2023[49]. - The company is positioned to increase its polyester film and sheet production capacity by 100% with the new project, strengthening its market position as one of China's major polyester film manufacturers[48]. - An investment of approximately $185 million has been made to establish a production line for polyester industrial yarn, with an annual capacity of about 250,000 tons, which has begun commercial production[95]. Market and Economic Outlook - The group anticipates gradual improvement in the global economy by 2024, supported by fiscal and monetary policy measures[45]. - The Chinese government's supportive policies for the textile industry are expected to help alleviate operational pressures and promote industry transformation and competitiveness[46]. - The group’s management noted a 2.3% year-on-year decline in profits for large industrial enterprises in China, totaling over RMB 76 trillion from January to December 2023[45]. Corporate Governance and Shareholder Returns - The company does not recommend any final dividend for the year ending December 31, 2023[96]. - The company has repurchased a total of 486,000 shares during the fiscal year ending December 31, 2023, with 328,000 shares canceled within the same period[101]. - The company adheres to high standards of corporate governance to safeguard shareholder interests and enhance corporate value[98]. - The financial statements for the year ended December 31, 2023, have been reviewed by the auditors, confirming consistency with the preliminary consolidated financial statements[105].

Financial Performance - For the six months ended June 30, 2023, the company's revenue was RMB 7,504,397,000, a decrease of 7.4% compared to RMB 8,102,579,000 in the same period of 2022[9]. - Gross profit for the same period was RMB 395,609,000, down from RMB 1,067,514,000, reflecting a significant decline in gross margin[9]. - Operating profit decreased to RMB 310,935,000, compared to RMB 895,457,000 in the previous year, indicating a 65.3% drop[9]. - The net profit for the period was RMB 201,683,000, a decrease of 70.6% from RMB 686,352,000 in the prior year[9]. - The gross profit margin dropped to 5.3% from 13.2%, indicating a significant decline in profitability[10]. - The company reported a net profit margin of 2.7%, down from 8.5% in the previous period[10]. - The revenue from the sale of polyester products amounted to RMB 2,777,561,000, accounting for 37.0% of total revenue[30]. - The revenue from differentiated products was RMB 4,349,830,000, representing 58.0% of total revenue, with R&D expenses of RMB 178,232,000, or 2.4% of total revenue[28]. - The revenue from polyester filament products for the review period was RMB 3,853,583,000, a decrease of RMB 320,905,000 or 7.7% compared to RMB 4,174,488,000 in the first half of 2022[31]. - The revenue from polyester products was RMB 2,777,561,000, down RMB 186,379,000 or 6.3% from RMB 2,963,940,000 in the first half of 2022[32]. Investments and Expansion - The company has established Baihong Vietnam to expand its polyester bottle chip business, with a design capacity of 250,000 tons per year for polyester bottle chips[5]. - Investment of approximately USD 73.9 million in Vietnam is expected to yield an annual production capacity of about 300,000 tons, with commercial production anticipated in the second half of 2023[5]. - The company is investing approximately USD 185 million to establish production lines for polyester industrial yarn, with a total capacity of 250,000 tons per year[5]. - A total investment of around USD 320 million is planned for polyester film production lines, with new production capacity expected to reach 400,000 tons per year[5]. - The group’s polyester film production capacity will double with the launch of a new project, enhancing its market position as one of China's major polyester film manufacturers[25]. - The group has successfully launched a polyester bottle chip project with an annual capacity of 250,000 tons in Vietnam, contributing to its goal of becoming a demonstration platform for capacity cooperation between China and Vietnam[27]. - The company plans to invest approximately USD 185,000,000 to establish a production line for polyester industrial yarn, with an expected annual capacity of 250,000 tons[74]. - A further investment of approximately USD 73,900,000 is planned for developing new production facilities for polyester bottle flakes, with an anticipated annual capacity of 300,000 tons starting in the second half of 2023[74]. - The company has invested around USD 320,000,000 in expanding its polyester film production lines, which will add an annual production capacity of 400,000 tons[75]. Cost and Pricing - The average selling price of polyester filament decreased by RMB 476 per ton, or 5.3%, from RMB 8,955 to RMB 8,479 per ton[31]. - The average selling price of polyester products fell by RMB 1,152 per ton, or 14.4%, from RMB 8,018 to RMB 6,866 per ton[32]. - The average gross profit per ton for polyester filament dropped from RMB 1,197 in the first half of 2022 to RMB 433 in the review period, with a gross margin decrease of 8.3 percentage points[49]. - The average gross profit per ton for polyester products fell from RMB 1,201 in the first half of 2022 to RMB 341 in the review period, with a gross margin decrease of 10.0 percentage points[50]. - The main raw materials PTA and MEG accounted for 71.0% of the total sales cost of polyester filament, with PTA costs increasing to RMB 2,049,568, representing 28.8% of total costs in the review period[44]. - The total sales cost for polyester products was RMB 7,108,788 in the review period, slightly up from RMB 7,035,065 in the first half of 2022[45]. Assets and Liabilities - Non-current assets increased by 7.6% to RMB 13,019,375,000 compared to RMB 12,101,249,000 in the previous period[10]. - Current liabilities decreased by 5.2% to RMB 15,293,563,000 from RMB 16,136,937,000[10]. - The total assets of the group were RMB 26,459,743,000, resulting in an asset-to-liability ratio of 1.6 times[68]. - As of June 30, 2023, the total liabilities of the group amounted to RMB 16,342,047,000, with a debt-to-equity ratio of 161.5%[68]. - The cash and cash equivalents as of June 30, 2023, were RMB 218,106,000, a decrease of 5.8% from RMB 231,620,000 at the end of 2022[67]. - The company's inventory increased to RMB 4,350,357 thousand from RMB 4,011,391 thousand, reflecting a rise of approximately 8.45%[78]. - The total trade and other receivables as of June 30, 2023, were RMB 3,197,375,000, compared to RMB 2,886,168,000 as of December 31, 2022, indicating an increase of about 10.8%[113]. - The company reported a decrease in bank acceptance notes from RMB 5,652,298,000 as of December 31, 2022, to RMB 624,152,000 as of June 30, 2023, a decline of approximately 88.9%[114]. Operational Efficiency - The group has established a 5G smart factory in collaboration with China Mobile, improving production efficiency and reducing labor costs[27]. - The company emphasizes technological innovation and has implemented full-process intelligent automation in production[22]. - The company aims to strengthen its marketing channels and customer service, focusing on market responsiveness and product performance improvements based on customer feedback[27]. - The production capacity for full drawn yarn and pre-oriented yarn is 1,189,000 tons per year as of June 30, 2023[18]. - The production capacity for polyester filament was enhanced by the operations of subsidiaries in Vietnam[31]. Management and Governance - The company has complied with the corporate governance code as per the listing rules during the six months ended June 30, 2023[156]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim financial information for the six months ended June 30, 2023[157]. - The company has no related party transactions during the reporting period, aside from those disclosed[140]. - The company has no contingent liabilities as of June 30, 2023, maintaining a stable financial position[71]. Market Outlook - The macroeconomic environment is showing signs of recovery, which may positively impact the company's performance moving forward[20]. - The management remains optimistic about the long-term growth of the business despite short-term impacts from the ongoing pandemic[75].

Financial Performance - For the first half of 2023, the company's revenue reached RMB 7.504 billion, a decrease of 7.4% compared to the same period last year[2] - The company's profit for the first half of 2023 was RMB 202 million, down 70.6% year-on-year[2] - Earnings per share for the first half of 2023 were RMB 0.10, compared to RMB 0.32 in the same period last year[4] - Gross profit for the first half of 2023 was RMB 396 million, significantly lower than RMB 1.067 billion in the previous year[4] - Operating profit for the first half of 2023 was RMB 311 million, down from RMB 895 million in the same period last year[4] - The total comprehensive income attributable to the company's owners for the first half of 2023 was RMB 292 million, compared to RMB 777 million in the previous year[5] - Total revenue for the six months ended June 30, 2023, was RMB 7,504,397,000, a decrease of 7.4% from RMB 8,102,579,000 for the same period in 2022[12] - The company's profit attributable to owners for the six months ended June 30, 2023, was RMB 201,683,000, a decrease of 70.7% compared to RMB 686,352,000 for the same period in 2022[25] - Other income for the first half of 2023 was RMB 294,964,000, down 12.7% from RMB 338,039,000 in the same period of 2022[68] - The group's profit for the review period was RMB 201,683,000, a decrease of RMB 484,669,000 or 70.6% compared to RMB 686,352,000 in the first half of 2022, primarily due to a decline in sales prices and an increase in sales costs[74] Revenue Breakdown - Revenue from polyester filament products was RMB 3,853,583,000, down 7.7% from RMB 4,174,488,000 in the previous year[12] - Revenue from polyester products was RMB 2,777,561,000, a decrease of 6.3% compared to RMB 2,963,940,000 in 2022[12] - Revenue from industrial polyester yarn and ES fiber products totaled RMB 873,253,000, down from RMB 964,151,000, reflecting a decline of 9.4%[12] - Revenue from the Chinese market was RMB 5,711,162,000, a decrease of 4.4% from RMB 5,972,023,000 in the previous year[12] - Revenue from differentiated products was RMB 4,349,830,000, representing 58.0% of total revenue, with R&D expenses amounting to RMB 178,232,000, or 2.4% of total revenue[49] - Domestic sales accounted for 76.1% of total revenue, with 48.8% from Fujian province and 13.4% from Guangdong province[55] - Overseas sales revenue decreased by 15.8% from RMB 2,130,556,000 in the first half of 2022 to RMB 1,793,235,000 in the current period, reducing the overseas sales proportion from 26.3% to 23.9%[55] Cost and Expenses - The total sales cost for the first half of 2023 was RMB 7,108,788,000, an increase of 1.0% from RMB 7,035,065,000 in the same period of 2022[57] - The average selling price of polyester filament decreased by 5.3% to RMB 8,479 per ton, down from RMB 8,955 per ton in the previous year[51] - The average sales cost per ton of polyester filament increased by 3.7% to RMB 8,046, compared to RMB 7,758 in the first half of 2022[58] - The average sales cost per ton of polyester products decreased by 4.3% to RMB 6,525, compared to RMB 6,817 in the previous year[59] - The gross margin for polyester products decreased from 15.0% to 5.0%, a decline of 10.0 percentage points[64] - Selling and distribution expenses decreased by 20.7% to RMB 96,585,000 from RMB 121,825,000 in the first half of 2022[70] - Administrative expenses were RMB 254,803,000, a decrease of 17.9% compared to RMB 310,254,000 in the same period of 2022[71] - Financial costs dropped by 54.2% to RMB 58,995,000 from RMB 128,916,000 in the first half of 2022 due to a reduction in the weighted average interest rate on bank loans[72] Assets and Liabilities - As of June 30, 2023, the company's total assets less current liabilities amounted to RMB 11.166 billion, an increase from RMB 10.117 billion at the end of 2022[7] - The company's current liabilities net amount was approximately RMB 1.853 billion as of June 30, 2023[9] - Non-current assets totaled RMB 13.019 billion as of June 30, 2023, compared to RMB 12.732 billion at the end of 2022[6] - The total trade receivables from third parties as of June 30, 2023, amounted to RMB 1,603,808,000, an increase of 66.6% from RMB 963,060,000 as of December 31, 2022[27] - The company's inventory as of June 30, 2023, was RMB 4,350,357,000, an increase of 8.4% from RMB 4,011,391,000 as of December 31, 2022[26] - The group's total liabilities as of June 30, 2023, were RMB 16,342,047,000, with a debt-to-equity ratio of 161.5%[76] Investments and Future Plans - The company plans to invest approximately $73.9 million in Vietnam for new polyester bottle chip production facilities, expected to have an annual capacity of 300,000 tons starting in June 2023[46] - From 2020 to April 2023, the company plans to invest about $320 million to enhance its polyester film production capacity, aiming for an additional annual production capacity of 400,000 tons[46] - The group plans to invest approximately USD 185,000,000 to establish a production line for polyester industrial yarn, with an expected annual capacity of 250,000 tons[82] - A further investment of approximately USD 73,900,000 in Vietnam for a new production facility for polyester bottle flakes is expected to yield an annual capacity of 300,000 tons, gradually commencing commercial production from June 2023[82] Market and Industry Outlook - The company's management noted that the global economy is showing signs of recovery despite challenges such as the COVID-19 pandemic and geopolitical tensions[43] - The company expects that the global economy will gradually improve in 2023, supported by fiscal and monetary policies[43] - The textile industry in China is facing complex challenges in 2023, including economic losses from the pandemic and increased international competition, but the macroeconomic foundation remains positive[44] Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the group's financial reporting procedures and internal control systems[85] - The company confirmed compliance with the standard code of conduct for securities transactions by directors as of June 30, 2023[84] - The interim financial report for the six months ended June 30, 2023, will be made available to shareholders and can be accessed on the company's website[88] - The company has not issued or granted any stock options, bonuses, convertible securities, or similar rights during the six months ended June 30, 2023[88] Share Repurchase and Dividends - The company repurchased a total of 258,000 shares during the six months ended June 30, 2023, at a total cost of approximately RMB 944 thousand[41] - The board has decided not to declare any interim dividend for the six months ended June 30, 2023[83] - 42,000 shares were canceled within the same period, and the remaining 216,000 shares were subsequently canceled in July 2023[86] - The highest repurchase price per share was HKD 4.21, while the lowest was HKD 3.76 during the repurchase period[87]

Production Capacity and Investments - As of December 31, 2022, the domestic design capacity for polyester filament of the group is 2,726,400 tons per year, with 1,005,000 tons for fully drawn yarn and pre-oriented yarn, and 711,400 tons for stretch yarn[4]. - The design capacity for domestic polyester products is 910,000 tons per year, with 550,500 tons specifically for BOPET film, making it one of the largest polyester film manufacturers in China[5]. - The group has established a subsidiary in Vietnam with a design capacity of 554,300 tons for polyester filament, including 184,000 tons for fully drawn yarn and pre-oriented yarn, and 170,300 tons for stretch yarn[8]. - An investment of approximately $73.9 million has been announced for developing new production facilities for polyester bottle sheets in Vietnam, expected to yield an annual capacity of 300,000 tons starting from June 2023[8]. - The group is investing about $185 million to establish a production line for polyester industrial yarn products, with a total capacity of approximately 250,000 tons per year[9]. - A total investment of approximately $320 million is planned for expanding the polyester film business, with new production lines expected to add an annual capacity of 400,000 tons, resulting in a total production capacity of 228,000 tons per year[10]. - The polyester filament production capacity was expanded to 255,000 tons per year after the completion of the polyester film production expansion plan[15]. - The establishment of Baimao Vietnam aims to expand overseas production capacity to 250,000 tons for polyester bottle sheet business, with a total investment of approximately USD 220 million[15]. - The new production facility in Jin Nan Industrial Zone has an annual production capacity of 220,000 tons for polyester filament, with an investment of about USD 222 million[15]. - The company plans to invest approximately USD 185 million to establish a production line for polyester industrial yarn products, with a designed total capacity of about 250,000 tons per year[15]. - The company plans to invest approximately $320 million to establish a polyester film production line between 2020 and 2023, aiming to expand its polyester film business[42]. - The group has invested in a 700,000-ton differentiated chemical fiber project in Vietnam, with a focus on producing water bottle-grade chips[73]. Financial Performance - Revenue for the year ended December 31, 2022, was RMB 15,564,988 thousand, representing a 9.3% increase from RMB 14,241,565 thousand in 2021[23]. - Gross profit decreased by 48.2% to RMB 1,423,945 thousand from RMB 2,747,817 thousand in the previous year[23]. - Operating profit fell by 59.3% to RMB 961,111 thousand compared to RMB 2,360,409 thousand in 2021[23]. - Net profit for the year was RMB 655,818 thousand, down 62.7% from RMB 1,759,731 thousand in 2021[23]. - The gross margin for 2022 was 9.1%, down from 19.3% in 2021[23]. - The company did not declare any interim or final dividends for the year[23]. - The revenue from differentiated products was RMB 9,106,941,000, accounting for 58.5% of total revenue, with R&D expenses at RMB 435,055,000, or 2.8% of total revenue[75]. - The revenue from polyester products amounted to RMB 5,636,081,000, accounting for 36.2% of total revenue[77]. - The revenue from polyester filament was RMB 8,022,664,000, making up 51.6% of total revenue[77]. - The total revenue for the year reached RMB 15,564,988,000, compared to RMB 14,241,565,000 in the previous year[86]. - The annual profit for 2022 was RMB 655,818,000, a decrease of 62.7% from RMB 1,759,731,000 in 2021, with a net profit margin of 4.2%[133]. Market and Industry Trends - The textile industry in China reported total operating revenue of approximately RMB 2.62 trillion and profits of around RMB 100 billion for the year ending December 31, 2022[32]. - The domestic demand and consumption upgrades are identified as the main drivers for the textile industry's growth, supported by rising incomes and new urbanization policies[35]. - The global economic environment showed signs of recovery in 2023, supported by vaccination efforts and government consumption promotion policies[55]. - The textile industry is expected to benefit from various government support policies aimed at stabilizing growth and enhancing competitiveness[59]. - The company anticipates a gradual improvement in the domestic textile market sales volume due to government support and economic recovery[60]. - The textile industry plays a crucial role in employment and stabilizing the supply chain, despite facing external challenges[56]. - The company continues to strengthen its market position despite facing complex development challenges, including low external demand and rising trade risks[35]. Technological Innovation and Sustainability - The company emphasizes technological innovation and has adopted a "production, learning, research, and application" model to enhance competitiveness[35]. - The company is committed to providing healthy and green products, aligning with its vision of sustainability[30]. - The company has achieved full-process intelligent automated production, enhancing product quality and output, demonstrating strong risk resistance during the pandemic[35]. - The group has implemented a scientific management software system to optimize production processes and enhance efficiency[65]. - The company employs advanced polyester melt direct spinning technology to improve efficiency and reduce costs[54]. - The company is focusing on upstream resource control and tracking the availability of recycled, biodegradable, and bio-based materials to enhance the proportion of recyclable products[40]. - The company is committed to enhancing innovation capabilities and promoting green development in the textile sector[59]. Corporate Governance - The company is committed to high standards of corporate governance to ensure shareholder interests and enhance corporate value[157]. - As of December 31, 2022, the company has complied with all corporate governance codes as per the Hong Kong Stock Exchange[157]. - The board consists of two executive directors, one non-executive director, and three independent non-executive directors, responsible for corporate strategy, business operations, and risk management[160]. - Independent non-executive directors play a crucial role in providing impartial opinions on the group's strategy and performance[162]. - The company has established a mechanism to manage conflicts of interest, requiring directors to report and avoid any potential conflicts[171]. - The board has adopted a diversity policy for its members, which includes measurable objectives and progress updates[183]. - The remuneration committee consists mainly of independent non-executive directors and is responsible for determining the specific remuneration of executive directors and senior management[196]. Employee Development and Corporate Culture - The company aims to enhance employee development and maintain a balance between work and life, ensuring fair treatment and opportunities for all employees[43]. - The company encourages directors to participate in professional development courses and seminars to enhance their knowledge and skills[180]. - The company does not have a set measurable target for gender diversity at the employee level but adheres to a merit-based and diverse hiring approach[191]. - The company is committed to developing a more comprehensive and diverse pool of experienced employees for senior management and board positions[185].