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通告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本通告全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 China Treasures New Materials Group Ltd. 主席兼執行董事 張玉秋 謹啟 中寶新材集團有限公 司 中國吉林省長春，2025年8月19日 （於開曼群島註冊成立的有限公司） （股份代號：2439） 於本公告日期，執行董事為張玉秋女士、單玉柱先生、李溪泉先生及李鵬先生；獨立非執 行董事為賴景然博士、宋曉峰博士及梁子榮先生。 董事會會議日期 中寶新材集團有限公司（「本公司」，及其附屬公司「本集團」）董事（「董事」）會（「董事會」） 宣佈，董事會會議將於2025年8月29日（星期五）舉行，藉以（其中包括）審議通過本集團截 至2025年6月30日止六個月的中期業績及其公告以供發佈，以及考慮宣派中期股息（如有）。 代表董事會 中寶新材集團有限公司 ...

Summary of Key Points Core Viewpoint - A total of 142 stocks reached their 52-week highs as of August 12, with notable performers including Yingmei Holdings (02028), Elite Group (01775), and Fuying Global Group (01620) achieving high rates of 164.89%, 84.78%, and 40.63% respectively [1]. Stock Performance - **Top Performers**: - Yingmei Holdings (02028) closed at 0.223 with a peak of 0.249, marking a 164.89% increase [1]. - Elite Group (01775) closed at 0.350 with a peak of 0.425, reflecting an 84.78% increase [1]. - Fuying Global Group (01620) closed at 0.180, reaching its peak at 0.180, showing a 40.63% increase [1]. - **Other Notable Stocks**: - Aoya Group (02425) increased by 34.36% [1]. - Fuyiy International Holdings (01470) saw a rise of 28.30% [1]. - Huajian Medical (01931) experienced a 27.58% increase [1]. 52-Week High Rankings - The ranking of stocks that reached their 52-week highs includes: - Yingmei Holdings (02028) at 164.89% [1]. - Elite Group (01775) at 84.78% [1]. - Fuying Global Group (01620) at 40.63% [1]. 52-Week Low Rankings - The report also highlights stocks that reached their 52-week lows, with notable declines including: - Jiadeng International Group (08153) at -15.25% [4]. - Kun Group (00924) at -12.86% [4]. - Zhongjia Guoxin (00899) at -10.00% [4].

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 致：香港交易及結算所有限公司 公司名稱: 中寶新材集團有限公司 呈交日期: 2025年8月6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) | 02439 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | 0 | | 本月底結存 | | | 10,000,000,000 | HKD | | 0.01 | HKD | | 100,000,000 | 本月 ...

Financial Performance - The company's revenue for the fiscal year 2024 increased by approximately 11.4% to around RMB 407.5 million, compared to RMB 365.8 million in fiscal year 2023[9]. - The profit attributable to shareholders reached approximately RMB 111.2 million, representing a significant year-on-year growth of about 32.4% from RMB 84.0 million in the previous fiscal year[9]. - The group achieved a net profit margin of 27.6% in FY2024, up from 23.1% in FY2023[25]. - The group recorded a profit of approximately RMB 112.4 million for the year, a growth of 32.9% compared to RMB 84.6 million in FY2023, attributed to increased revenue and other income[39]. - The cost of sales for the year was approximately RMB 245.5 million, an increase of about 11.4% from RMB 220.4 million in the previous year, primarily due to rising production and raw material costs[31]. - Gross profit for the year was approximately RMB 162.0 million, up about 11.3% from RMB 145.5 million, with a stable gross margin of approximately 39.8%[32]. - Other income rose significantly to approximately RMB 20.3 million, an increase of about 178.1% from RMB 7.3 million, mainly due to increased government subsidies and rental refunds[33]. - The total asset return increased to 16.3% in FY2024 from 15.2% in FY2023[25]. - The interest coverage ratio improved significantly to 41.1 times in FY2024, compared to 25.9 times in FY2023[25]. Production and Operations - The company has established two production bases in Dongguan, Guangdong Province, and Anji, Zhejiang Province, with the Dongguan factory fully operational in fiscal year 2024[10]. - The company plans to concentrate operations at its main production base in Changchun, Jilin Province, after ceasing operations at the Dongguan and Anji factories[10]. - Approximately HKD 59.2 million of the funds raised post-IPO have been allocated for expanding the new production line at the Changchun base and for R&D projects[11]. - The company has entered into a transfer agreement to purchase land in Changchun to establish a new production base aimed at increasing production capacity for biodegradable plastic products[9]. - The new production base in Changchun is still in the planning stage as of the report date[9]. - The group plans to consolidate operations by relocating machinery from Dongguan and Anji factories to the main base in Changchun, aiming for cost efficiency and improved production capabilities[16][20]. - The company has initiated trial production of newly purchased machinery and equipment at the Changchun production base, despite not completing the full expansion by the second quarter of 2024[67]. - The company plans to establish a production base in Dongguan instead of Huizhou due to unexpected delays in obtaining necessary approvals, with the decision to use internal funds for initial investments[68]. - The new production base in Changchun will enhance flexibility to meet the growing demand in Northeast China, where biodegradable product sales accounted for over 80% of the company's revenue[71]. Market and Regulatory Environment - The Chinese government has implemented policies to ban non-biodegradable plastic bags by the end of 2025, which is expected to benefit the company's biodegradable plastic product business[12]. - The Chinese government is expanding the ban on non-biodegradable plastic bags to various commercial venues by the end of 2025, increasing demand for biodegradable products[22][23]. - The company is optimistic about the future prospects of its biodegradable plastic products business, supported by favorable government policies and measures[12]. - The group is strategically positioned to meet the growing demand for biodegradable products due to changing consumer habits and supportive government policies[23]. Research and Development - The group is collaborating with the Changchun Institute of Applied Chemistry for R&D on biodegradable plastic products, enhancing competitive advantages in technology and quality control[19]. - The company plans to enhance its R&D capabilities and upgrade existing R&D equipment, with an allocation of approximately HKD 6.68 million[65]. - The company has a strong focus on research and development in biodegradable products, with key personnel involved in industry associations[82]. - The company is focused on developing smart polymer materials and biodegradable multi-phase materials for biomedical and ecological applications[86]. - The company has published over 50 research papers and holds 15 patents in biodegradable polymers, showcasing its commitment to innovation and research[86]. Governance and Compliance - The company has adopted the corporate governance code as per the Stock Exchange's listing rules for the fiscal year 2024, ensuring compliance with all applicable provisions[93]. - The board of directors consists of four executive directors and several independent non-executive directors, ensuring a diverse and independent governance structure[101]. - The company has established four board committees: Audit Committee, Remuneration Committee, Nomination Committee, and ESG Committee[115]. - The company has adopted a board diversity policy, with a current gender ratio of approximately 0.48:1 among its 161 employees, down from 0.58:1 in 2023[130]. - The company has established a shareholder communication policy to ensure effective communication with shareholders and investors[155]. - The company has implemented a whistleblowing policy to report any suspected violations or misconduct[149]. - The company has adopted a zero-tolerance policy towards bribery, extortion, fraud, and money laundering[148]. - The board has confirmed that the risk management and internal control systems for the fiscal year 2024 are effective and adequate[147]. - The company is committed to transparency and accountability to its shareholders, reinforcing its corporate governance principles[93]. Shareholder Information - The company reported a total issued share capital of HKD 10,000,000, divided into 1,000,000,000 shares with a par value of HKD 0.01 each as of December 31, 2023[159]. - The company has significant shareholdings with Ms. Zhang owning 321,080,700 shares, representing approximately 32.11% of the issued share capital[199]. - Mr. Dan holds 190,822,340 shares, accounting for about 19.08% of the company's issued share capital[199]. - The shareholding structure reflects a concentrated ownership, with the top three shareholders holding over 52% of the total shares[199]. - The report indicates that the company is compliant with the Securities and Futures Ordinance regarding the disclosure of interests[199]. - The company continues to monitor and report on shareholding changes as per regulatory requirements[199]. Employee and Social Responsibility - The total employee cost for the fiscal year 2024 was approximately RMB 14.4 million, an increase from RMB 13.1 million in the previous year[61]. - The company recognizes employees as important assets and provides competitive compensation to attract and retain high-quality staff[165]. - The company made charitable donations of approximately RMB 50,000 in the fiscal year 2024, compared to RMB 30,000 in the fiscal year 2023[176]. - The company has not encountered any significant disputes with customers or suppliers during the fiscal year 2024[166]. - The company has complied with relevant laws and regulations without any serious violations as of the fiscal year 2024[164].

Financial Performance - The total revenue for the year ended December 31, 2024, was RMB 3,407,495 thousand, representing a significant increase from RMB 365,811 thousand in 2023, marking a growth of approximately 831%[4] - Gross profit for the same period was RMB 162,038 thousand, up from RMB 145,454 thousand in 2023, indicating a growth of about 11.5%[4] - The net profit for the year was RMB 112,377 thousand, compared to RMB 84,607 thousand in 2023, reflecting an increase of approximately 32.8%[4] - The total comprehensive income for the year was RMB 112,232 thousand, compared to RMB 90,923 thousand in 2023, showing a growth of around 23.3%[4] - Basic and diluted earnings per share for the year were RMB 11.12, up from RMB 8.80 in 2023, representing an increase of approximately 26.8%[5] - The pre-tax profit for 2024 was RMB 111,161,000, an increase from RMB 83,970,000 in 2023, representing a growth of approximately 32.5%[35] - The group’s profit for the year was approximately RMB 112.4 million, reflecting a growth of 32.9% compared to RMB 84.6 million in the previous fiscal year[75] Assets and Liabilities - Non-current assets increased from RMB 122,412 thousand in 2023 to RMB 112,479 thousand in 2024, indicating a decrease of about 8.1%[6] - Current assets rose from RMB 445,566 thousand in 2023 to RMB 568,192 thousand in 2024, reflecting an increase of approximately 27.5%[6] - Total liabilities increased from RMB 89,839 thousand in 2023 to RMB 127,100 thousand in 2024, representing a growth of about 41.3%[6] - The company's total equity increased from RMB 448,124 thousand in 2023 to RMB 560,356 thousand in 2024, indicating a growth of approximately 25%[7] - Total assets as of December 31, 2024, were RMB 690,604,000, up from RMB 558,045,000 in 2023, indicating a growth of 23.7%[25] - The total interest-bearing loans as of December 31, 2024, were RMB 72,010,000, an increase from RMB 49,658,000 in 2023, with secured loans at RMB 57,250,000 and unsecured loans at RMB 14,760,000[47] Revenue Segmentation - Total segment revenue for biodegradable plastic products reached RMB 381,163 thousand, while non-biodegradable automotive plastic components generated RMB 26,332 thousand, totaling RMB 407,495 thousand[22] - Segment performance showed a gross profit of RMB 151,216 thousand for biodegradable products and RMB 10,822 thousand for automotive components, leading to a total gross profit of RMB 162,038 thousand[22] - The group’s biodegradable products accounted for approximately 80.4% of total revenue from customers in Northeast China, with sales to other cities in China making up about 19.6%[59] Research and Development - Research and development costs amounted to RMB 26,196 thousand, indicating ongoing investment in innovation[22] - Research and development expenses rose significantly to RMB 26,196,000 in 2024, compared to RMB 17,443,000 in 2023, marking an increase of approximately 50.1%[30] - The group has strengthened production capacity and collaborated with major research institutions to enhance the performance and cost of biodegradable materials[61] Operational Expenses - The company incurred administrative and other operating expenses of RMB 41,820 thousand, impacting overall profitability[22] - Administrative and other operating expenses increased by approximately 3.2% from RMB 40.5 million to RMB 41.8 million, primarily due to an increase in R&D expenses of about RMB 8.8 million[71] - Financial costs decreased by approximately 17.5% from RMB 4.0 million to RMB 3.3 million, mainly due to a reduction in bank loan interest and lease liability interest[72] Market Strategy and Expansion - The company is focused on expanding its market presence through the development of biodegradable products, aligning with global sustainability trends[18] - The company plans to continue expanding its market presence in China, where nearly all assets and liabilities are located[26] - The company plans to establish a new production base in Changchun, Jilin Province, to enhance production capacity for biodegradable plastic products, with the project currently in the planning stage[57] - The company has initiated trial production for newly purchased machinery and equipment at the Changchun production base, despite not completing the full expansion by Q2 2024[95] Government Support and Regulations - The company received government subsidies totaling RMB 9,803,000 in 2024, significantly higher than RMB 2,889,000 in 2023[29] - The Chinese government has implemented regulations banning non-biodegradable plastic products, which is expected to increase demand for biodegradable plastic products[63] Corporate Governance - The company has adopted new and revised International Financial Reporting Standards, which are expected to enhance the consistency of financial reporting[11] - The company has adopted the corporate governance code as stipulated in the listing rules and believes it has complied with all applicable provisions during the year[114] - The Audit Committee has reviewed the financial performance for the fiscal year 2024, with no disagreements between the Board and the Audit Committee[119] Shareholder Information - The company did not recommend any dividend for the year ending December 31, 2024, consistent with the previous year[37] - The company will hold its 2025 Annual General Meeting on June 27, 2025, with a suspension of share transfer registration from June 24 to June 27, 2025[118]

Revenue and Profitability - The company reported that the revenue from non-biodegradable automotive plastic parts accounted for approximately 6.7% of total revenue for the six months ended June 30, 2024, compared to 4.1% for the same period in 2023[14]. - Biodegradable products generated approximately 79.9% of total revenue from customers in Northeast China, down from 81.0% in the previous period[14]. - The company's revenue increased to approximately RMB 196.9 million, a growth of about 8.6% compared to RMB 181.3 million in the previous period, driven by sustained demand for biodegradable plastic products[18]. - Revenue for the six months ended June 30, 2024, was RMB 196,868 thousand, an increase of 8.7% compared to RMB 181,309 thousand for the same period in 2023[63]. - The company reported a profit before tax of RMB 56,469,000 and a net profit of RMB 48,208,000 for the period[80]. - The net profit for the six months ended June 30, 2024, was RMB 47,834 thousand, compared to RMB 38,175 thousand for the same period in 2023, representing a growth of 25.5%[67]. Production and Operations - The Dongguan factory's first phase was fully operational during the reporting period, while the Anji factory is still awaiting the necessary machinery to meet stable production requirements[14]. - The company has established two new production bases in Dongguan and Anji to meet the growing demand for biodegradable plastic products in Southeast China[14]. - The company is collaborating with the Changchun Institute of Applied Chemistry for research and development of biodegradable plastic products[16]. - The company plans to establish a production base in Huizhou in Southeast China by 2025, with an allocated budget of approximately HKD 51.6 million[38]. - The company plans to establish a production base in Dongguan instead of Huizhou due to unexpected delays in obtaining necessary approvals, with the decision made to avoid significant delays in expansion plans[39]. Financial Performance - Gross profit for the period was approximately RMB 78.4 million, an increase of about 10.4% from RMB 71.0 million, with a gross margin of approximately 39.8% compared to 39.1% in the previous period[19]. - The total comprehensive income for the period was RMB 48,156 thousand, an increase from RMB 46,206 thousand in the previous year, reflecting a growth of 2.0%[68]. - The net cash generated from operating activities was RMB 61,216 thousand, up from RMB 47,994 thousand in the same period last year, indicating a growth of 27.0%[69]. - The total equity as of June 30, 2024, was RMB 496,280 thousand, up from RMB 403,407 thousand as of June 30, 2023, reflecting a growth of 23.0%[68]. Expenses and Costs - Other income decreased by approximately 69.0% to about RMB 0.9 million, primarily due to a reduction in government subsidies from RMB 1.6 million to RMB 0.4 million[20]. - Selling and distribution expenses decreased by approximately 25.0% to about RMB 2.4 million, mainly due to a reduction in marketing consulting fees[21]. - Administrative and other operating expenses decreased by approximately 7.4% to about RMB 18.7 million, influenced by a reduction in depreciation and cost control measures[22]. - Financial costs decreased by approximately 29.2% to about RMB 1.7 million, attributed to lower bank loan interest and lease liability interest[23]. Investments and Capital Expenditure - The total capital expenditure for the group was RMB 53,668,000 for the six months ended June 30, 2024, compared to RMB 3,510,000 in the same period of 2023, showing a substantial increase[86]. - The total capital expenditure commitments as of June 30, 2024, were RMB 3,031,000, down from RMB 3,503,000 as of December 31, 2023[114]. Shareholder Information - Major shareholders include Zhang Yuqiu with 32.11% and Shan Yuzhu with 19.08% of the company's issued share capital as of June 30, 2024[41]. - Zhang Yuqiu and Shan Yuzhu are considered to have interests in each other's shares due to their marital relationship[43]. Compliance and Governance - The company maintained compliance with corporate governance codes and regulations throughout the reporting period[61]. - All directors confirmed compliance with the standard code of conduct for securities transactions during the reporting period[59]. Market Outlook - The outlook for biodegradable plastic products is optimistic, supported by increasing demand due to regulatory changes and shifts in consumer behavior towards home dining and takeaway[17].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 196,868 thousand, an increase of 8.6% compared to RMB 181,309 thousand for the same period in 2023[2] - Gross profit for the same period was RMB 78,388 thousand, representing a gross margin of 39.8%, up from RMB 70,970 thousand in 2023[2] - Profit before tax increased to RMB 56,469 thousand, a rise of 23.4% from RMB 45,784 thousand in the previous year[2] - Net profit attributable to owners of the company was RMB 47,834 thousand, compared to RMB 38,175 thousand in 2023, reflecting a growth of 25.5%[3] - Basic and diluted earnings per share increased to RMB 4.78, up from RMB 4.21 in the same period last year[3] - The group reported segment revenue of RMB 196,868 thousand for the six months ended June 30, 2024, compared to RMB 181,309 thousand for the same period in 2023, representing an increase of approximately 8.8%[12][14] - The pre-tax profit for the group for the six months ended June 30, 2024, was RMB 56,469 thousand, compared to RMB 45,784 thousand for the same period in 2023, indicating a year-over-year increase of approximately 23.7%[13][14] - The group’s profit for the period was approximately RMB 48.2 million, representing a growth of about 24.9% compared to the previous period's profit of RMB 38.6 million, mainly due to increased revenue and reduced listing expenses[64] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 525,178 thousand, compared to RMB 445,566 thousand at the end of 2023, indicating a growth of 17.9%[4] - The group’s total assets as of June 30, 2024, amounted to RMB 634,089 thousand, with segment assets for biodegradable plastic products at RMB 148,305 thousand and non-biodegradable automotive plastic components at RMB 37,704 thousand[16] - Current liabilities increased to RMB 127,966 thousand from RMB 89,839 thousand, representing a rise of 42.4%[4] - The group’s total liabilities as of June 30, 2024, were RMB 137,809 thousand, with segment liabilities for biodegradable plastic products at RMB 45,656 thousand and non-biodegradable automotive plastic components at RMB 2,380 thousand[16] - Trade receivables from third parties as of June 30, 2024, amounted to RMB 109,962 thousand, an increase of 8.3% from RMB 101,546 thousand as of December 31, 2023[31] - Total trade and other payables as of June 30, 2024, reached RMB 63,024 thousand, up 41.5% from RMB 44,533 thousand as of December 31, 2023[34] - Interest-bearing loans as of June 30, 2024, totaled RMB 59,441 thousand, an increase from RMB 49,658 thousand as of December 31, 2023[39] Cash Flow and Investments - The company reported cash and cash equivalents of RMB 381,714 thousand, an increase from RMB 315,696 thousand in the previous year[4] - Capital expenditures for the six months ended June 30, 2024, totaled RMB 3,510 thousand, compared to RMB 53,668 thousand for the same period in 2023, indicating a significant reduction in investment spending[16] - The cash outflow for leases for the six months ended June 30, 2024, was approximately RMB 1,000,000, compared to RMB 1,500,000 for the same period in 2023[42] - The company successfully raised net proceeds of approximately HKD 155.4 million, which has been partially utilized for strategic initiatives[50] Business Operations - The company continues to focus on the development and production of biodegradable plastic products and non-biodegradable automotive plastic components in China[7] - Revenue from the development and production of biodegradable plastic products was RMB 183,776,000, up from RMB 173,922,000, representing a growth of 5.0%[20] - Revenue from the development and production of non-biodegradable automotive plastic parts increased significantly to RMB 13,092,000, compared to RMB 7,387,000, marking a growth of 77.4%[20] - The company continues to strengthen production capacity and collaborate with major research institutions to enhance biodegradable plastic product development[52] - The anticipated demand for biodegradable plastic products in Southeast China is expected to grow, prompting the company’s expansion efforts[50] - The company has established two new production bases in Dongguan, Guangdong Province, and Anji, Zhejiang Province, to expand its biodegradable plastic product business[50] Expenses and Cost Management - The group incurred administrative and other operating expenses of RMB 20,202 thousand for the six months ended June 30, 2023, which decreased to RMB 18,717 thousand for the same period in 2024, reflecting a cost reduction strategy[14][15] - Sales cost for the period was approximately RMB 118.5 million, an increase of about 7.4% from RMB 110.3 million in the previous period[56] - Sales and distribution expenses decreased by approximately 25.0% to about RMB 2.4 million, mainly due to a one-time reduction in marketing consulting fees[59] - Financial costs decreased by approximately 29.2% to about RMB 1.7 million, mainly due to lower bank loan interest and lease liability interest[61] Shareholder Information - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024[30] - The total number of shares increased from 38,000,000 to 10,000,000,000 following the issuance of 9,962,000,000 new shares[43] - The average number of ordinary shares used for calculating basic earnings per share was 1,000,000,000 for the six months ended June 30, 2024, compared to 906,574,586 for the same period in 2023[29] - The company adopted a share option plan on March 9, 2023, which is effective for 10 years and aims to incentivize qualified individuals to enhance their contributions to the group[83][84] Compliance and Governance - The company has adhered to all provisions of the corporate governance code as per the listing rules during the reporting period[96] - The audit committee, consisting of independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024[97] - The company has complied with relevant laws and regulations, with no significant violations reported during the period[95]

Production Expansion Delays - The company plans to delay the use of net proceeds for expanding the Changchun production base for biodegradable plastic products due to ongoing global economic, financial, and geopolitical complexities, as well as challenges in the Chinese business environment in 2023[1]. - The strategic review in Q4 2023 led to the postponement of plans including the procurement of production machinery and equipment, renovation of the Changchun production facility, and hiring new employees[2]. - The establishment of a new production base in Huizhou has been delayed due to unexpected approval delays from local authorities, with the company now considering an alternative site in Dongguan[3]. - The company confirmed that it will postpone the use of net proceeds originally intended for the Huizhou factory, opting instead to relocate equipment to Dongguan to avoid significant delays[4]. Production Machinery and Trial Production - The company has begun trial production with new machinery and equipment purchased in 2023 at the Changchun production base, although full expansion is not expected to be completed by Q2 2024[2]. Financial Proceeds Utilization - The company anticipates using the unutilized net proceeds for general working capital by the end of 2024[4].

Financial Allocation - The company plans to utilize HKD 51,743,000 for expanding the biodegradable plastic production line in Changchun by the end of 2024[3]. - An amount of HKD 51,588,000 is expected to be used for establishing a production base in Southeast China by 2025[3]. - The company has allocated HKD 33,253,000 for enhancing R&D projects, with HKD 14,320,000 already utilized and HKD 18,933,000 expected to be used by the end of 2024[4]. - HKD 6,682,000 is earmarked for strengthening the company's R&D capabilities and upgrading existing R&D equipment, expected to be utilized by 2025[4]. - The total unutilized net proceeds as of December 31, 2023, amount to HKD 119,169,000[4]. Strategic Adjustments - The company has decided to adjust its expansion plans due to the establishment of two new production facilities, requiring time to assess potential opportunities[4]. - The company will determine the actual allocation of unutilized proceeds after reviewing the financial situation for the full year of 2024[5]. - Internal funds have been used for initial investments in Anji and Dongguan, rather than the unutilized proceeds from the listing[4]. Corporate Governance - The company emphasizes that the information provided is supplementary to the 2023 annual report and should be read in conjunction with it[6]. - The chairman and executive director of the company is Zhang Yuqiu, with other executive directors including Shan Yuzhu, Li Xiquan, and Li Peng[6].

Financial Performance - The company's revenue for the fiscal year 2023 increased by 22.0% to approximately RMB 365.8 million, compared to RMB 299.8 million in fiscal year 2022[15]. - The profit attributable to shareholders reached approximately RMB 84.6 million, a significant increase of 48.5% from RMB 57.0 million in the previous fiscal year[15]. - The net profit margin for fiscal year 2023 was 23.1%, an increase from 19.0% in fiscal year 2022[23]. - The current ratio improved to 5.0 in fiscal year 2023 from 2.4 in fiscal year 2022, indicating stronger liquidity[23]. - The interest coverage ratio increased to 25.9 in fiscal year 2023 from 21.6 in fiscal year 2022, reflecting improved financial stability[23]. - Gross profit for FY2023 was approximately RMB 145.5 million, up 21.0% from RMB 120.2 million in FY2022, with a gross margin of 39.8%, slightly down from 40.1% in the previous year due to inflationary pressures on raw material costs[27]. - Other income surged by 883.3% to approximately RMB 7.3 million from RMB 0.7 million in the previous year, driven by increased government subsidies and interest income from bank deposits[27]. - Administrative and other operating expenses rose significantly by 59.6% to approximately RMB 40.5 million from RMB 25.4 million, mainly due to increased depreciation and R&D expenses related to collaboration projects[29]. - The group's sales cost for the year was approximately RMB 220.4 million, a significant increase of 22.7% compared to RMB 179.5 million in the previous year, primarily due to rising production and raw material costs associated with increased sales[26]. Expansion and Production Capacity - The company successfully raised approximately HKD 155.4 million post-IPO, with about HKD 36.2 million allocated for expanding the production line in Changchun and funding R&D projects[17]. - A new production facility in Dongguan, Guangdong, has commenced trial production in the second half of 2023, expected to contribute positively in the near future[15]. - The company has leased another factory in Anji, Zhejiang, with internal funding, projected to commence production in Q2 2024[15]. - The company has terminated its lease for the factory in Huizhou and relocated to Dongguan, where the new factory is expected to commence full production in the first half of 2024[1]. - The company continues to enhance its production capacity and R&D capabilities through collaborations with research institutions[20]. Market Outlook and Strategy - The biodegradable plastic products market in China is supported by government policies, with a ban on non-biodegradable plastic bags in commercial venues by the end of 2025[17]. - The outlook for the biodegradable plastic products business is optimistic, with the company prepared to seize future opportunities and challenges[17]. - The company is focused on optimizing its business structure and increasing capacity utilization to significantly enhance profitability[15]. - The company remains committed to its mission of promoting a green environment, aligning its operations with the latest developments in the Chinese economic landscape[17]. Corporate Governance and Management - The company adopted the corporate governance code as per the Stock Exchange Listing Rules Appendix C1 since March 31, 2023, ensuring compliance with all applicable provisions[58]. - The board consists of four executive directors and three independent non-executive directors, ensuring compliance with the requirement of having at least three independent non-executive directors[62]. - The roles of the chairman and the CEO are separated, with different individuals appointed to each position since May 16, 2022[62]. - The company has established a comprehensive strategy planning process to identify and assess challenges and opportunities, aiming to create sustainable long-term value for shareholders[59]. - The company emphasizes the importance of ESG initiatives, with Li Peng being a member of the ESG committee[51]. Environmental, Social, and Governance (ESG) Initiatives - The company is committed to environmental, social, and governance (ESG) practices, aiming for sustainable business development and long-term value creation[144]. - The company has established an ESG policy that includes risk governance related to climate risks and opportunities[144]. - The group has implemented measures to minimize environmental impact, including the use of biodegradable plastic products to combat white pollution in China[152]. - The company has committed to reducing pollution from its business activities as part of its sustainability and environmental management strategy[152]. - The company emphasizes transparency and fairness in its supplier selection process, aiming for win-win cooperation[148]. Employee Relations and Training - The company maintains good relationships with employees, with no labor disputes reported in fiscal year 2023[106]. - The company has implemented safety training programs for employees to ensure understanding of safety procedures and policies[106]. - The group has invested significantly in employee training, providing onboarding and ongoing training to enhance skills, knowledge, and capabilities[186]. - Employee training hours increased from approximately 7.75 hours in 2022 to 9.00 hours in 2023, representing a 16.13% increase[189]. - The overall employee turnover rate decreased from 2.57% in 2022 to 1.17% in 2023, indicating improved employee retention[178]. Risk Management and Compliance - The company has classified its business risks into three categories: industry-related risks, operational risks in China, and risks associated with being listed[104]. - The company has conducted a review of its risk management and internal control systems for the fiscal year 2023, making timely improvements based on identified deficiencies[95]. - The board has confirmed that the risk management and internal control systems are effective and adequate, with no significant deficiencies identified by external consultants[95]. - The company has implemented a whistleblowing policy to encourage reporting of any misconduct or violations within the organization[96]. Shareholder Engagement and Dividends - The company did not recommend a final dividend for the fiscal year 2023, consistent with the previous fiscal year[110]. - The company aims to provide high levels of disclosure and financial transparency to shareholders and investors, with communication channels including interim and annual reports[100]. - The company encourages shareholders to attend meetings and communicate directly with the board, facilitating shareholder engagement[97].