Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 365,811,000, representing a 22% increase from RMB 299,789,000 in 2022[2] - Gross profit for the same period was RMB 145,454,000, up 21% from RMB 120,244,000 in 2022[2] - The pre-tax profit increased to RMB 100,130,000, a 43% rise compared to RMB 69,829,000 in the previous year[2] - Net profit attributable to the owners of the company was RMB 83,970,000, which is a 48% increase from RMB 56,508,000 in 2022[3] - The total comprehensive income for the year was RMB 90,923,000, compared to RMB 56,690,000 in 2022, marking a 60% increase[2] - The company reported a basic and diluted earnings per share of RMB 8.80, compared to RMB 6.98 in 2022, reflecting a 26% increase[3] - The group recorded a profit of approximately RMB 84.6 million for the fiscal year, representing a 48.5% increase from RMB 57.0 million in the previous fiscal year[63] Assets and Liabilities - The company's total assets as of December 31, 2023, were RMB 468,206,000, significantly up from RMB 216,853,000 in 2022[4] - Cash and cash equivalents increased to RMB 315,696,000 from RMB 99,230,000, indicating a substantial growth in liquidity[4] - The company incurred total liabilities of RMB 109,921 thousand across its reportable segments as of December 31, 2023[13] - The company reported total interest-bearing borrowings of RMB 49,658,000 in 2023, up from RMB 39,844,000 in 2022, reflecting a growth of 24%[36] - The group's capital debt ratio improved significantly to 13.7% as of December 31, 2023, down from 31.7% a year earlier, due to a substantial increase in total equity following the IPO[65] Segment Performance - The total revenue for the biodegradable plastic products segment was RMB 346,936 thousand, while the non-biodegradable automotive plastic parts segment generated RMB 18,875 thousand, resulting in a total revenue of RMB 365,811 thousand for the year ended December 31, 2023[11] - The gross profit for the biodegradable plastic products segment was RMB 137,667 thousand, and for the non-biodegradable automotive plastic parts segment, it was RMB 7,787 thousand, leading to a total gross profit of RMB 145,454 thousand[11] - Revenue from biodegradable plastic products increased to RMB 346,936,000 in 2023 from RMB 280,484,000 in 2022, representing a growth of 23.7%[17] - Revenue from non-biodegradable automotive plastic parts decreased slightly to RMB 365,811,000 in 2023 from RMB 299,789,000 in 2022, a decline of 1.5%[17] Expenses and Costs - The sales cost for the year was approximately RMB 220.4 million, a significant increase of 22.7% from RMB 179.5 million in the previous year[55] - Administrative and other operating expenses rose significantly by 59.6% to approximately RMB 40.5 million, attributed to increased depreciation and R&D expenses[59] - Financial costs for the year were approximately RMB 4.0 million, an increase of 18.4% from RMB 3.4 million in the previous year, due to increased interest-bearing borrowings[60] - Employee costs rose to RMB 13,098,000 in 2023 from RMB 11,863,000 in 2022, an increase of 10.4%[20] Research and Development - Research and development costs amounted to RMB 17,443 thousand, reflecting the company's commitment to innovation in biodegradable products[11] - The company plans to enhance production capacity and R&D capabilities through collaboration with research institutions and expansion of production facilities in various regions[52][53] Government Support and Subsidies - The company received government subsidies totaling RMB 2,889,000 in 2023, up from RMB 489,000 in 2022, an increase of 487.4%[19] - Total other income rose significantly to RMB 7,345,000 in 2023 compared to RMB 747,000 in 2022, marking an increase of 885.5%[19] Capital Expenditures and Investments - Capital expenditures for the year were RMB 53,668 thousand, indicating ongoing investment in production capabilities[13] - The company has incurred capital expenditure commitments totaling RMB 966,000, of which RMB 487,000 has been paid as a deposit[46] - The net proceeds from the IPO, amounting to approximately HKD 155.4 million, are allocated for various purposes, including expanding production lines and enhancing R&D capabilities[74] Production Facilities and Expansion Plans - The company has established a new production facility in Dongguan, Guangdong Province, which is expected to commence full production in the first half of 2024[48] - A new production base is being set up in Anji, Zhejiang Province, with initial construction expected to be completed by the second quarter of 2024[48] - The company has terminated its lease for the Huizhou factory and redirected its expansion plans to the Dongguan facility[48] - The first phase of the new factory will be trial-operated using internal resources of the company[76] Corporate Governance and Compliance - The company has adopted the corporate governance code as of March 31, 2023, and has complied with all applicable rules since its listing[78] - The audit committee has reviewed the financial performance for the fiscal year 2023, and there were no disagreements between the board and the audit committee[82] - The company's auditor has confirmed the figures in the preliminary announcement align with the audited financial statements for the year ending December 31, 2023[83]

Core Viewpoint - Zhongbao New Materials (02439) has seen a stock price increase of over 9%, currently trading at 0.415 HKD, with a transaction volume of 2.54 million HKD. The company anticipates a significant rise in net profit for the fiscal year 2023, projecting an increase from approximately 56.5 million RMB in 2022 to no less than 80 million RMB in 2023, primarily driven by the growth in sales of biodegradable products [1]. Group 1 - The company expects net profit attributable to shareholders to increase from approximately 56.5 million RMB in 2022 to no less than 80 million RMB in 2023 [1]. - The increase in profit is mainly attributed to the growth in revenue from sales of biodegradable roll bags and shopping bags, leading to higher gross margins and reduced listing expenses [1]. - Biodegradable plastic products have become the company's primary source of revenue, contributing over 90% to total income [1]. Group 2 - Zhongbao New Materials initially focused on the development and manufacturing of non-biodegradable automotive plastic parts [1]. - In response to the national "plastic ban" policy implemented in Jilin Province at the end of 2015, the company gradually shifted its business focus towards the development and manufacturing of biodegradable plastic products [1]. - The product range now includes roll bags, shopping bags, packaging stretch films, and masterbatches [1].

Financial Performance - Total revenue for the first half of 2023 was approximately RMB 181.3 million, an increase of 33.0% compared to RMB 136.4 million in the same period of 2022[14]. - Profit for the first half of 2023 was approximately RMB 38.6 million, up from RMB 32.4 million in the same period of 2022, representing a growth of 19.1%[14]. - Earnings per share for the first half of 2023 was RMB 4.21, compared to RMB 3.92 in the same period of 2022, reflecting an increase of 7.4%[14]. - The group's total revenue for the period was approximately RMB 181.3 million, a significant increase of 32.9% compared to RMB 136.4 million in the previous period, driven by post-pandemic economic recovery and increased demand for biodegradable products[17]. - Gross profit for the period was approximately RMB 71.0 million, a notable increase of 24.6% from RMB 57.0 million in the previous period, with a gross margin of 39.1%, slightly down from 41.8% due to rising raw material costs[19]. - The group recorded a profit of approximately RMB 38.6 million for the period, a growth of 19.1% compared to RMB 32.4 million in the previous period, primarily due to significant revenue growth[25]. - The company achieved a profit before tax of RMB 45,784,000, which is a 19.5% increase compared to RMB 38,258,000 in the previous year[64]. - Net profit for the period was RMB 38,582,000, compared to RMB 32,444,000 in the prior year, reflecting a growth of 19%[64]. - The total comprehensive income for the period was RMB 45,799 thousand, compared to RMB 31,735 thousand, indicating an increase of 44.3%[71]. Revenue Sources and Market Focus - Approximately 81.0% of total revenue in the first half of 2023 came from customers in Northeast China, while the remaining 19.0% was from other regions in China[14]. - The company is focused on eliminating the impact of white pollution in China through the promotion of biodegradable plastic products[16]. - The company plans to continue expanding its market presence in biodegradable plastics, leveraging recent investments and financing activities[72]. - The company plans to continue expanding its market presence in China, where all revenue and nearly all assets are located[85]. Capital and Financing Activities - The company raised approximately HKD 155.4 million from its listing on the Hong Kong Stock Exchange on March 31, 2023, to enhance brand assets and shareholder base[15]. - The net proceeds from the issuance of 190,000,000 shares amounted to approximately HKD 155.4 million, with unutilized net proceeds of about HKD 141.0 million as of June 30, 2023[38][39]. - The group plans to utilize the unutilized net proceeds for expanding the production line of biodegradable plastic products in Changchun and establishing a production base in Huizhou, with respective unutilized amounts of HKD 45.128 million and HKD 51.588 million[39][40]. - The company raised RMB 175,560,000 from issuing shares during the reporting period, a significant increase compared to RMB 8,000 in the same period of 2022[72]. Research and Development - The company is enhancing its research and development capabilities through collaboration with the Changchun Institute of Applied Chemistry and upgrading existing equipment[16]. - The group aims to enhance its R&D capabilities and upgrade existing R&D equipment, with an allocated amount of HKD 6.682 million for this purpose[39]. - Research and development expenses for the six months ended June 30, 2023, amounted to RMB 6,389,000, up from RMB 3,772,000 in the prior year, indicating a significant increase of approximately 69.5%[90]. - The company’s research and development focus includes biodegradable plastic products, with a significant portion of revenue derived from this segment[87]. Expenses and Cost Management - The cost of sales for the period was approximately RMB 110.3 million, up 38.9% from RMB 79.4 million in the previous period, primarily due to increased sales volume and inflationary pressures on production and raw material costs[18]. - Selling and distribution expenses rose to RMB 3.2 million, a significant increase of 146.2% from RMB 1.3 million in the previous period, driven by higher logistics costs associated with increased sales of biodegradable plastic products[21]. - Administrative and other operating expenses surged to RMB 20.2 million from RMB 8.0 million, a 152.5% increase, attributed to higher depreciation, R&D expenses, and increased office costs due to business expansion[22]. - The total income tax expense for the period was RMB 7,202,000, compared to RMB 5,814,000 for the same period in 2022, representing an increase of approximately 23.8%[93]. Shareholder Information - Major shareholders include Zhang Yuqiu with a 38.11% stake and Shan Yuzhu with a 29.08% stake in the company[42][43]. - The group has not declared an interim dividend for the current period, consistent with the previous period where no dividend was declared[35]. - The company has established a stock option plan to incentivize employees and directors, which was adopted on March 9, 2023[37]. - The company is focused on attracting and retaining experienced and talented individuals through the share option scheme[51]. Liquidity and Financial Position - As of June 30, 2023, the group maintained sufficient liquidity with cash and cash equivalents of approximately RMB 280.8 million, up from RMB 99.2 million as of December 31, 2022[30]. - The group's capital debt ratio improved to 16.0% as of June 30, 2023, from 31.7% as of December 31, 2022, mainly due to a significant increase in equity following the IPO[30]. - The company's cash and cash equivalents reached RMB 280,777 thousand, up from RMB 99,230 thousand, indicating a growth of 183.5%[66]. - The total assets as of June 30, 2023, amounted to RMB 518,420,000, with total liabilities of RMB 115,013,000, resulting in a net asset position of RMB 403,407,000[83]. Employee and Management Costs - As of June 30, 2023, the total employee cost, including director remuneration, was approximately RMB 6.5 million, compared to RMB 5.8 million in the same period last year, reflecting an increase of about 12.07%[36]. - The total remuneration for key management personnel increased to RMB 503,000 (unaudited) for the six months ended June 30, 2023, compared to RMB 318,000 for the same period in 2022, representing a growth of 58%[113]. - Employee costs, including directors' remuneration, totaled RMB 6,471,000 for the six months ended June 30, 2023, compared to RMB 5,843,000 in the same period of 2022, reflecting an increase of about 10.8%[90]. Compliance and Governance - The company has complied with all relevant laws and regulations impacting its business operations during the reporting period[61]. - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[96]. - There were no related party transactions that required disclosure under the listing rules during the reporting period[58].

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 70,970,000, an increase from RMB 56,969,000 in the same period of 2022, representing a growth of 24.6%[2] - Gross profit increased to RMB 70,970,000, compared to RMB 56,969,000 in 2022, reflecting a gross margin improvement[2] - Profit before tax for the period was RMB 45,784,000, up from RMB 38,258,000 in 2022, indicating a growth of 19.8%[2] - Net profit attributable to owners of the company was RMB 38,175,000, compared to RMB 31,735,000 in the previous year, marking a 20.4% increase[3] - Total comprehensive income for the period was RMB 46,206,000, up from RMB 32,249,000 in 2022, representing a growth of 43.3%[2] - The company reported a basic and diluted earnings per share of RMB 4.21, compared to RMB 3.92 in the previous year, an increase of 7.4%[3] - The group reported segment revenue of RMB 181,309 thousand for the six months ended June 30, 2023, compared to RMB 136,390 thousand for the same period in 2022, representing a growth of approximately 33%[13] - Total revenue for the six months ended June 30, 2023, was RMB 181,309,000, an increase of 33% compared to RMB 136,390,000 for the same period in 2022[19] - Revenue from the development and production of biodegradable plastic products was RMB 173,922,000, up from RMB 124,240,000 in the previous year, representing a growth of 40%[19] - The group recorded a profit of approximately RMB 38.6 million for the period, representing a growth of 19.1% compared to RMB 32.4 million in the previous period, primarily due to significant revenue growth[64] Assets and Liabilities - Cash and cash equivalents increased significantly to RMB 280,777,000 from RMB 99,230,000 at the end of 2022, showing a growth of 183.5%[4] - Total assets as of June 30, 2023, were RMB 419,273,000, compared to RMB 212,389,000 at the end of 2022, reflecting a growth of 97.2%[4] - The company's equity attributable to owners increased to RMB 400,835,000 from RMB 195,839,000, indicating a growth of 104.2%[5] - Total assets as of June 30, 2023, amounted to RMB 518,420 thousand, with total liabilities of RMB 115,013 thousand[15] - Trade receivables from third parties increased to RMB 97,725,000 as of June 30, 2023, up from RMB 72,968,000 as of December 31, 2022, indicating a growth of approximately 33.8%[30] - The company’s trade payables to third parties rose to RMB 35,591,000 as of June 30, 2023, compared to RMB 10,200,000 as of December 31, 2022, reflecting a substantial increase of approximately 249.5%[32] - The company’s interest-bearing borrowings totaled RMB 42,410,000 as of June 30, 2023, compared to RMB 39,844,000 as of December 31, 2022, marking an increase of about 6.5%[34] - The total lease liabilities as of June 30, 2023, amounted to RMB 21,956,000, compared to RMB 22,876,000 as of December 31, 2022[39] Costs and Expenses - The company reported a total of RMB 108,816,000 in cost of goods sold for the six months ended June 30, 2023, compared to RMB 78,744,000 in the previous year, indicating a rise of 38%[22] - Employee costs, including director remuneration, increased to RMB 6,471,000 from RMB 5,843,000, representing an increase of 11%[21] - The administrative and other operating expenses totaled RMB 20,202 thousand, indicating a need for cost management strategies[13] - Selling and distribution expenses rose to RMB 3.2 million, a significant increase of 146.2% from RMB 1.3 million in the previous period, driven by increased logistics costs related to biodegradable plastic product sales[59] - Administrative and other operating expenses surged to RMB 20.2 million, a 152.5% increase from RMB 8.0 million in the previous period, attributed to higher depreciation and amortization, increased R&D expenses, and business expansion[60] Investments and Future Plans - The company is focused on developing and producing biodegradable plastic products and non-biodegradable automotive plastic components, indicating ongoing investment in sustainable technologies[6] - The company plans to continue exploring new product development and market expansion opportunities to drive future growth[10] - The company plans to expand production capacity in Changchun and establish a new facility in the Southeast region to meet growing demand for biodegradable products[54] - The company is enhancing its research and development capabilities through collaboration with the Changchun Institute of Applied Chemistry[54] - The group has allocated funds for expanding its biodegradable plastic production line in Changchun, with a planned expenditure of HKD 51,743,000, of which HKD 6,615,000 has been utilized[79] Shareholder Information - The company issued 190,000,000 new shares at a price of HKD 1.05 per share, raising approximately HKD 199.5 million (about RMB 175.56 million) from the global offering[45] - The weighted average number of ordinary shares used for calculating basic earnings per share increased from 810,000,000 in 2022 to 906,574,586 in 2023, reflecting a growth of about 11.9%[27] - The net proceeds from the issuance of 190,000,000 shares amounted to approximately HKD 155.4 million, with HKD 141.0 million remaining unutilized as of June 30, 2023[78][79] - The company has sufficient public float, with public holdings not less than 25% of the total issued shares[92] Compliance and Governance - The company has complied with all relevant laws and regulations, with no significant violations reported during the period[94] - The board of directors confirmed adherence to the standards of conduct for securities trading throughout the period[93] - The company has established an audit committee, which includes independent non-executive directors, to oversee financial reporting[96] - The company adopted a share option scheme on March 9, 2023, allowing for the issuance of up to 100,000,000 shares, representing 10% of the issued share capital[84] - No related party transactions requiring disclosure under the listing rules occurred during the period[91]

Revenue and Financial Performance - Revenue for 2022 increased by 16.8% to approximately RMB 299.8 million, up from RMB 256.7 million in 2021[11] - Total revenue increased by 16.8% from RMB 256.7 million in 2021 to RMB 299.8 million in 2022, driven by higher sales of biodegradable plastic products[19] - The company's net profit margin decreased from 30.5% in 2021 to 19.0% in 2022[17] - The company's total assets return decreased from 34.8% in 2021 to 18.7% in 2022[17] - The company's equity return rate decreased from 55.6% in 2021 to 28.8% in 2022[17] - Net profit decreased by 27.3% to RMB 57.0 million in 2022 from RMB 78.4 million in 2021[25] - Gross profit increased by 6.3% to RMB 120.2 million, but gross margin decreased from 44.1% to 40.1% due to higher cost increases compared to selling price increases[21] - Sales and distribution expenses surged by 272.0% to RMB 5.2 million, mainly due to increased logistics service fees and other expenses[22] - Administrative and other operating expenses rose by 90.7% to RMB 25.4 million, driven by depreciation, R&D costs, office expenses, and legal fees related to the proposed listing[23] - The company's interest coverage ratio decreased from 27.8x in 2021 to 21.6x in 2022[17] - No final dividend was recommended for 2022, compared to RMB 137.0 million in 2021[71] - The company did not recommend the payment of a final dividend for the 2022 fiscal year, compared to RMB 137.0 million in the 2021 fiscal year[87] Production and Operations - The company's production base in Changchun implemented a "closed-loop management" system to maintain operations during COVID-19 restrictions[11] - Demand for biodegradable plastic products slowed in March and April 2022 due to temporary lockdowns in Changchun, but rebounded from May onwards due to changes in dining habits[11] - The company's business is focused on the development and production of biodegradable plastic products in Northeast China[11] - The company's production base is located in Changchun, Jilin Province, China[6] - The company's revenue growth was driven by increased demand for biodegradable shopping bags and roll bags due to changes in dining habits[11] - The company's strategic focus includes expanding production capacity and enhancing R&D capabilities to adapt to market trends[13] - The company's business operations were significantly impacted by macroeconomic and geopolitical challenges, as well as COVID-19 restrictions in China[11] - The company plans to expand production capacity in Changchun and establish a new production base in Huizhou[15] - The company aims to strengthen its position as a leading manufacturer of biodegradable products in China and expand its business to other regions[15] - Property, plant, and equipment increased to RMB 63.6 million, with RMB 30.2 million invested in production site improvements[26] - The company raised approximately HKD 153.0 million post-listing, primarily for expanding production lines in Changchun, establishing a new production base in Huizhou, and enhancing R&D and IT systems[13] - The company raised approximately HKD 153.0 million through its listing on the Hong Kong Stock Exchange on March 31, 2023[16] - The company raised approximately HKD 155.4 million from the global offering of 190,000,000 shares at a final offer price of HKD 1.05 per share[34] - As of April 28, 2023, the net proceeds from the IPO have not been utilized, with HKD 155.4 million remaining unused and deposited in a licensed bank in Hong Kong[35] - The company plans to use the net proceeds for expanding production lines at the Changchun production base (HKD 51.74 million), establishing a Huizhou production base in Southeast China (HKD 51.59 million), and strengthening R&D capabilities (HKD 6.68 million)[35] - Additional planned uses of net proceeds include funding R&D projects (HKD 33.25 million), enhancing IT systems (HKD 4.66 million), and general working capital (HKD 7.46 million)[35] - The company's business objectives, future plans, and intended use of proceeds are based on the best estimates and assumptions of future market conditions at the time of preparing the prospectus[36] Environmental, Social, and Governance (ESG) - The Chinese government's policies on plastic pollution control, including a ban on non-degradable plastic bags by the end of 2025, are expected to benefit the company's business[13] - The company's ESG report covers the period from January 1, 2022, to December 31, 2022, focusing on biodegradable plastic products and non-biodegradable automotive plastic parts[121] - The company has established an ESG policy to manage climate-related risks and opportunities, with the Board responsible for overseeing ESG-related risks and setting annual ESG goals[122] - The company conducts annual enterprise risk assessments to identify and mitigate ESG-related strategic risks, including climate change[122] - Key stakeholders include investors, employees, suppliers, media, community, customers, and stock exchanges, with communication channels tailored to each group[123][124][125] - The company prioritizes stakeholder engagement through surveys to understand ESG concerns, with a focus on social aspects such as greenhouse gas emissions, product quality control, and occupational health and safety[127][128] - The company has identified 28 key ESG issues, with the top three being greenhouse gas emissions, product quality control, and occupational health and safety[128] - Nitrogen oxide (NOx) emissions increased by 397.19% from 151.03 kg in FY2021 to 750.90 kg in FY2022[133] - Sulfur oxide (SOx) emissions increased by 400.00% from 0.65 kg in FY2021 to 3.25 kg in FY2022[133] - Particulate matter (PM) emissions increased by 397.57% from 14.83 kg in FY2021 to 73.79 kg in FY2022[133] - Total greenhouse gas emissions increased by 32.09% from 5,556.56 tons of CO2 equivalent in FY2021 to 7,339.41 tons in FY2022[136] - Scope 1 direct greenhouse gas emissions increased by 400.39% from 107.39 tons of CO2 equivalent in FY2021 to 537.37 tons in FY2022[136] - Scope 2 indirect greenhouse gas emissions increased by 25.08% from 5,435.59 tons of CO2 equivalent in FY2021 to 6,798.58 tons in FY2022[136] - Scope 3 other indirect greenhouse gas emissions decreased by 74.45% from 13.58 tons of CO2 equivalent in FY2021 to 3.47 tons in FY2022[136] - Greenhouse gas emission intensity increased by 17.14% from 0.70 tons of CO2 equivalent per ton of product sold in FY2021 to 0.82 tons in FY2022[136] - The company aims to reduce greenhouse gas emission intensity by at least 2% by FY2025 compared to FY2022[138] - The company plans to consider using more environmentally friendly fuel types, such as electricity or biomass, in the upcoming reporting period[134] - The company's direct energy consumption increased by 401.06% from 430,797.30 kWh in FY2021 to 2,158,560.37 kWh in FY2022, primarily due to increased sales and longer transportation distances caused by the pandemic[146][147] - Indirect energy consumption, mainly from purchased electricity, rose by 25.08% from 8,909,345.00 kWh in FY2021 to 11,143,388.76 kWh in FY2022, reflecting increased business activities[146][147] - Total energy consumption grew by 42.42% from 9,340,142.30 kWh in FY2021 to 13,301,949.13 kWh in FY2022, with energy consumption density per ton of product sold increasing by 26.24% from 1,178.42 kWh/ton to 1,487.58 kWh/ton[146] - The company generated 0.2 tons of non-hazardous office waste in both FY2021 and FY2022, maintaining a consistent waste density of 0.0013 tons per employee[141] - The company implemented various energy-saving measures, including setting air conditioning to 25°C, turning off lights during non-office hours, and regular maintenance of electrical equipment to optimize energy use[144][145] - Total water consumption increased from 820 cubic meters in FY2021 to 886 cubic meters in FY2022, an 8.05% increase[150] - Water consumption density remained stable at 0.10 cubic meters per ton of product sold in both FY2021 and FY2022[150] - Paper usage increased from 124 tons in FY2021 to 151.8 tons in FY2022, a 22.42% increase[152] - Plastic usage decreased from 13 tons in FY2021 to 12 tons in FY2022, a 7.69% decrease[152] - Total packaging material usage increased from 137 tons in FY2021 to 163.8 tons in FY2022, a 19.56% increase[152] - Packaging material density increased from 0.017 tons per ton of product sold in FY2021 to 0.018 tons in FY2022, a 5.88% increase[152] - The company has 54 qualified suppliers in its procurement list for FY2022, ensuring supply chain resilience against extreme weather disruptions[154] - The company aims to maintain water consumption at or below 10 cubic meters per ton of product sold[150] - The company has implemented various water-saving measures, including regular inspections and promoting water reuse[150] - The company has installed fire prevention equipment and implemented measures to prevent static electricity buildup to mitigate climate-related risks[154] - The company is committed to environmental sustainability, with detailed policies and performance outlined in the ESG report[86] - The company's environmental, social, and governance (ESG) policies and performance are detailed in the ESG report section of the annual report[86] - The company's ESG Committee was established on March 9, 2023, and held its first meeting on April 28, 2023, to review the ESG report for the year ended December 31, 2022[64] - The company's compensation policy for 2022 included salaries, contributions to retirement plans, and discretionary bonuses linked to company profits[115] - The company has adopted a share option plan as an incentive for directors and eligible employees[115] - The company has a zero-tolerance policy towards bribery, extortion, fraud, and money laundering, with detailed implementation in the ESG report[75] - The company conducted anti-corruption training for 4 directors and 155 employees in 2022, with a 300% increase in director training participation compared to 2021[192] - Total anti-corruption training hours increased by 176.75% from 228 hours in 2021 to 631 hours in 2022[193] - No corruption, bribery, or money laundering cases were reported during the period[194] - The company donated a total of 33,000 RMB to the Changchun Jiutai District Charity Association and 46,629.05 RMB worth of plastic bags in the 2022 fiscal year[195] - The company encourages employees to participate in community service activities to enhance social responsibility and improve its reputation as an active community builder[195] - Key performance indicators for emissions include data on greenhouse gas emissions (Scope 1 and Scope 2) and waste management (hazardous and non-hazardous waste)[196] - The company tracks energy consumption by type (electricity, gas, or oil) in thousands of kilowatt-hours and water usage, with density metrics per production unit or facility[198] - The company has established energy efficiency and water usage goals, along with steps to achieve these targets[198] - The company monitors the total amount of packaging materials used in production, measured in tons, and per production unit[198] - The company identifies and addresses significant climate-related issues that may impact its operations[198] - Employee training metrics include the percentage of trained employees by gender and category, as well as average training hours per employee[199] - The company reviews recruitment practices to prevent child labor and forced labor, with steps to eliminate violations if detected[200] - The company manages environmental and social risks in its supply chain, including the number of suppliers by region and practices for selecting eco-friendly products and services[200] Corporate Governance and Leadership - The company's co-founders, Ms. Zhang Yuqiu and Mr. Shan Yuzhu, have extensive experience in logistics and environmental materials, with Mr. Shan being one of the drafters of China's GB/T 38082-2019 standard for biodegradable plastic shopping bags[37][38] - Li Peng, aged 28, was appointed as an Executive Director and Vice President of Production on May 16, 2022, overseeing the company's production operations and contributing to the ESG Committee[40] - Wu Dafeng, aged 40, was appointed as an Independent Non-Executive Director on March 9, 2023, bringing over 10 years of accounting and financial industry experience, and serving as the Chairman of the Audit Committee[41] - Dr. Sun Shulin, aged 46, was appointed as an Independent Non-Executive Director on March 9, 2023, with expertise in polymer materials and serving as the Chairman of the Remuneration and ESG Committees[42] - Dr. Lai Jingran, aged 40, was appointed as an Independent Non-Executive Director on March 9, 2023, with over 15 years of research experience and 5 years of corporate management experience, focusing on biotech applications[43] - Wang Hao, aged 42, serves as the Financial Manager of the company, responsible for financial reporting and management since joining in November 2017[44] - The company appointed Mr. Yang Guangwei as Company Secretary on May 16, 2022, bringing over 23 years of experience in auditing, accounting, financial management, and corporate governance[45] - The company adopted the Corporate Governance Code under Appendix 14 of the Listing Rules starting March 31, 2023, ensuring compliance with accountability and transparency principles[46] - The company aims to align with China's biodegradable plastics market trends, focusing on long-term growth and environmental sustainability[48] - The company's strategy includes proactive planning to identify challenges and opportunities, aiming to create sustainable long-term value for shareholders[49] - The Board of Directors consists of four executive directors and three independent non-executive directors, ensuring compliance with Listing Rules regarding board composition[52][53] - The roles of Chairman and CEO are separated, with Ms. Zhang Yuqiu serving as Chairman and Mr. Shan Yuzhu as CEO since May 16, 2022[53] - Independent non-executive directors confirmed their independence, with no business or financial interests that could interfere with their judgment[53] - Executive directors have three-year service contracts, renewable for another three years, while independent non-executive directors have one-year terms, renewable annually[54] - The Board held one meeting in 2022 to discuss various matters, including the listing application, with attendance records provided for all directors[55] - The company held 2 board meetings by April 28, 2023, to approve the global offering and audited consolidated financial results for the year ended December 31, 2022[56] - The company paid RMB 5.15 million in total to its external auditor, including RMB 1.459 million for annual audit services and RMB 3.691 million for professional services related to the IPO[61] - The Audit Committee was established on March 9, 2023, and held its first meeting on April 28, 2023, to review the audited consolidated financial results for 2022[60] - The ESG Committee was established on March 9, 2023, and held its first meeting on April 28, 2023, to review the ESG report for the year ended December 31, 2022[64] - The Nomination Committee was established on March 9, 2023, and held its first meeting on April 28, 2023, to review the board's structure, size, and composition[63] - The Remuneration Committee was established on March 9, 2023, and held its first meeting on April 28, 2023, to review the remuneration of directors and senior management[62] - All directors attended training sessions on the duties and responsibilities of directors, covering topics such as connected transactions, corporate governance, and relevant laws and regulations[57][58] - The company's board consists of 7 directors, including 1 female, with a gender ratio of 0.54:1 among 159 employees (56 females and 103 males) as of December 31, 2022[66] - The company achieved all measurable diversity goals for the board in 2022, including having at least 3 independent non-executive directors, 1 female director, 1 director with accounting or professional qualifications, and 1 director with industry expertise[67] - The company's board diversity policy emphasizes a balanced mix of skills, experience, and perspectives, with directors aged between 28 and 50 and holding qualifications in various fields such as economics, finance, accounting, and engineering[66] - The company's nomination committee is responsible for ensuring board diversity and reviews the diversity policy annually, including gender balance[67] - The company's issued share capital increased to HKD 10,000,000, divided into 1,000,000,000 shares of HKD 0.01 each following the global offering[81] - The company has adopted a share option plan effective from March 9, 2023, with a total of 100,000,000 shares available for issuance, representing 10% of the issued share capital[97] - The maximum number of shares that can be issued to any eligible participant under the share option plan within any 12-month period is 1% of the issued shares[98] - The vesting period for all share options granted under the plan is no less than 12 months from the grant date[100] - Zhang女士通过Lvsetianye Technology Holdings Limited持有公司38.11%的股份，共计381,080,700股[102][106] - Shan先生通过Lvsesenlin Technology Holdings Limited及其全资子公司持有公司29.08%的股份，共计290,822,340股[102][106] -

Financial Results - The preliminary financial results for the year ended December 31, 2022, have been published and are available on the Hong Kong Stock Exchange and the company's website[1] - The annual report for the year ended December 31, 2022, will be sent to shareholders by April 30, 2023, or earlier[1] Company Information - The company is registered in the Cayman Islands and operates under the stock code 2439[1] Governance Structure - The board of directors includes both executive and independent non-executive members, indicating a diverse governance structure[2]