Financial Performance - For the fiscal year ending December 31, 2024, the total revenue was RMB 5,737,612,000, representing an increase of 8.1% compared to RMB 5,307,924,000 in 2023[3] - The gross profit for the same period was RMB 310,945,000, up from RMB 299,511,000, indicating a growth of 3.5%[3] - The operating loss increased significantly to RMB 528,032,000 from RMB 163,106,000, reflecting a deterioration in operational performance[3] - The net loss for the year was RMB 963,976,000, compared to a net loss of RMB 487,408,000 in the previous year, marking an increase in losses of 97.8%[3] - The company reported a basic and diluted loss per share of RMB 0.52, compared to RMB 0.24 in the previous year, indicating a worsening loss per share[3] - The group reported a net loss of RMB 963,976,000 for the year ending December 31, 2024, compared to a net loss of RMB 487,408,000 in 2023[13] - The company reported a pre-tax loss of RMB 1,005,942 for 2024, compared to a loss of RMB 550,624 in 2023, indicating a worsening of approximately 82%[33] - The effective tax expense for 2024 was RMB 41,966, down from RMB 63,216 in 2023, representing a decrease of about 34%[33] Assets and Liabilities - The total assets decreased to RMB 14,222,765,000 from RMB 14,960,243,000, a decline of 4.9%[6] - Current liabilities rose to RMB 10,560,725,000 from RMB 9,433,799,000, an increase of 11.9%[8] - Non-current assets decreased to RMB 10,462,116,000 from RMB 11,622,691,000, a reduction of 9.9%[6] - As of December 31, 2024, the group's current liabilities net amount was RMB 6,800,076,000, an increase from RMB 6,096,247,000 on December 31, 2023[13] - The debt-to-equity ratio as of December 31, 2024, was 0.70, compared to 0.64 as of December 31, 2023, indicating an increase in leverage[87] - Current assets increased from RMB 3.338 billion as of December 31, 2023, to RMB 3.761 billion as of December 31, 2024, representing an increase of approximately 13% due to increases in inventory and cash[83] Revenue Breakdown - The group's revenue from customer contracts for the year 2024 was RMB 5,737,612,000, an increase of 8.1% from RMB 5,307,924,000 in 2023[21] - The revenue breakdown includes sales of glass products at RMB 5,365,609,000, service contracts at RMB 306,604,000, and sales of spare parts at RMB 65,399,000[21] - Revenue from the colorless glass products segment for 2024 was RMB 2,218,851,000, a decrease from RMB 2,819,703,000 in 2023[25] - The energy-saving and new energy glass products segment generated revenue of RMB 1,160,620,000 in 2024, compared to RMB 703,361,000 in 2023, reflecting a significant increase[25] - Revenue from mainland China and Hong Kong for 2024 is RMB 3,909,528, a slight decrease from RMB 3,940,790 in 2023[27] - Total revenue from Nigeria increased marginally to RMB 402,913 in 2024 from RMB 402,420 in 2023[27] - Other countries contributed RMB 904,670 in revenue for 2024, up from RMB 690,793 in 2023, indicating a growth of approximately 31%[27] Operational Efficiency - The group has implemented new disclosure requirements to enhance transparency regarding supplier financing arrangements and their impact on liabilities and cash flow[20] - The group will continue to strengthen internal management and enhance overall management levels to improve operational efficiency and organizational resilience[69] - The company is implementing cost reduction and efficiency enhancement strategies, optimizing management structures, and enhancing employee cohesion[62] - A digital transformation platform has been established to optimize data integration and improve production efficiency, reducing manual intervention in the production process[63] Market Conditions - The float glass market is facing challenges due to limited demand from the construction sector, despite stable demand in automotive and home appliance sectors[54] - The photovoltaic glass industry is experiencing rapid development, but supply exceeds demand, leading to pressure on profitability across the entire photovoltaic industry chain[54] - The domestic real estate sector is expected to continue adjusting, leading to weak demand for ordinary construction glass, while high-end glass products are seeing increased demand from sectors like new energy vehicles and energy-efficient buildings[64] - The group anticipates a continued weak overall operation of the soda ash market in China, with prices expected to decline further[65] Strategic Initiatives - The company is actively implementing an "outbound" strategy, expanding its international presence in markets such as Nigeria, Kazakhstan, and Italy[56] - The company is responding to the "Belt and Road" initiative by starting the construction of a float glass production line in Egypt[56] - The group plans to enhance its product structure towards high value-added products, focusing on four core areas: energy-saving building deep processing, automotive coated glass, solar thermal reflective mirrors, and TCO coated films[68] - The group aims to deepen its "going out" long-term development strategy, expanding overseas contributions while ensuring the safety of foreign investments[67] Employee and Governance - The group employed a total of 4,589 employees as of December 31, 2024, down from 4,774 employees as of December 31, 2023, reflecting a strategic decision to phase out less profitable production lines in mainland China[92] - The company has approved a share incentive plan to reward employees and attract talent for future development[100] - The board can grant up to 183,621,825 shares under the incentive plan, which is limited to 10% of the total issued share capital[102] - The company actively promotes investor relations and communication with institutional investors and financial analysts[109] Dividends and Share Capital - No final dividend is recommended for the year ending December 31, 2024, consistent with the previous year[47] - The board of directors did not recommend a final dividend for the year ending December 31, 2024, compared to zero dividends for the previous year[94] - As of December 31, 2024, the total issued share capital is 1,836,218,258 shares, with no changes in the share capital structure during the year[105] Compliance and Audit - The audit committee has reviewed the accounting principles and practices adopted by the company for the year ending December 31, 2024[107] - The external auditor has confirmed that the figures in the annual performance announcement are consistent with the audited financial statements[108] - The company has applied the principles of the Corporate Governance Code and complied with applicable provisions, except for certain deviations[110]

Production and Sales Performance - In the first half of 2024, the company produced 30.72 million weight cases of various glass types, an increase of approximately 28% year-on-year, and sold 25.25 million weight cases, up about 22% from the previous year[10]. - The average selling price for glass was RMB 99.0 per weight case, reflecting a year-on-year increase of approximately 6%[10]. - The company's average unit cost of production was RMB 86 per weight case, a decrease of about 5% compared to the same period last year[12]. - The sales volume of glass products increased by about 22% year-on-year, primarily due to the acquisition of Gansu Daming and improved production efficiency in solar glass production lines[28]. - The average selling price of glass products increased by approximately 6% year-on-year, driven by higher sales of high-value energy-saving and new energy glass products[29]. Production Capacity and Infrastructure - The company operates 16 float glass production lines with a daily melting capacity of 8,600 tons, with 14 lines in operation as of June 30, 2024[9]. - The photovoltaic glass production lines consist of 2 lines, while there are 3 offline low-emissivity (Low-E) coating glass production lines[9]. - The company has one high-quality float glass production line under construction and another undergoing technical upgrades[9]. - The Gansu Daming 800 tons/day photovoltaic glass production line was launched in the first half of the year, expected to significantly contribute to the company's performance growth[13]. Market Environment and Strategy - The company is facing a competitive environment in the float glass market due to external economic conditions and policy directions, which are driving high-quality industry development[8]. - The solar power industry is experiencing rapid growth, leading to increased production capacity in the photovoltaic glass sector, although there is a short-term supply surplus[8]. - The company is focusing on the development of new technologies and products, particularly in the solar thermal glass market, which has significant growth potential[8]. - The company is focusing on optimizing its product structure and enhancing market competitiveness, particularly in the automotive glass sector, in response to market changes in the second half of 2024[21]. - The domestic real estate industry is expected to undergo significant adjustments, driving demand for high-end glass products such as automotive glass and energy-saving building glass[19]. Financial Performance - The company's main business revenue for the first six months of 2024 was RMB 2,683,496,000, an increase of approximately 27% compared to RMB 2,107,111,000 in the same period of 2023[27]. - The company's gross profit for the first half of 2024 was RMB 270,353,000, a significant increase of approximately 154% compared to RMB 106,364,000 in the same period of 2023[32]. - The company's financing costs rose by approximately 37% to RMB 229,773,000, mainly due to increased borrowings from newly acquired subsidiaries[34]. - The group recorded a net current liability of RMB 4,894,891,000 as of June 30, 2024, down from RMB 6,096,247,000 as of December 31, 2023[40]. - The group reported a net loss of RMB 136,888,000 for the six months ended June 30, 2024, compared to a net loss of RMB 138,642,000 for the same period in 2023, indicating a slight improvement[100]. Capital Structure and Financing - The company's current assets increased by approximately 26% from RMB 3,337,552,000 at the end of 2023 to RMB 4,204,679,000 by June 30, 2024[37]. - Non-current liabilities increased by approximately 41% from RMB 3,301,840,000 at the end of 2023 to RMB 4,644,553,000 by June 30, 2024, primarily due to increased long-term bank loans[38]. - The outstanding bank loans and other borrowings reached RMB 10,420,263,000, up from RMB 9,422,650,000 as of December 31, 2023, with 83.2% denominated in RMB[40]. - The debt-to-equity ratio as of June 30, 2024, was 0.68, compared to 0.64 as of December 31, 2023[40]. - The company aims to enhance its "going out" strategy, focusing on international capacity cooperation and seeking quality investment opportunities along the Belt and Road regions[24]. Shareholder and Corporate Governance - Major shareholders include New Glory Fund L.P. with a 14.86% stake, and China National Building Material Group Corporation with a 22.68% stake[48]. - The company maintained a public float of at least 25% of its issued share capital as required by the listing rules[71]. - The board and management are committed to maintaining good corporate governance practices, which are believed to enhance shareholder value[76]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ended June 30, 2024[70]. Research and Development - The company is focusing on the development of new technologies and products, particularly in the solar thermal glass market, which has significant growth potential[8]. - Research and development costs (excluding capitalized costs) amounted to RMB 11,621,000 for the six months ended June 30, 2024, down from RMB 15,940,000 in 2023[115]. Cash Flow and Liquidity - The net cash generated from operating activities for the six months ended June 30, 2024, was RMB 403,695,000, significantly higher than RMB 22,994,000 for the same period in 2023[96]. - Cash and cash equivalents increased to RMB 4,204,679,000, up from RMB 3,337,552,000, representing a growth of 26%[89]. - The group anticipates continued financial support from its major shareholder and does not foresee immediate repayment demands, ensuring liquidity for at least the next twelve months[100]. Inventory and Receivables - Inventory increased significantly to RMB 1,328,337,000, up 35.1% from RMB 982,623,000 as of December 31, 2023[89]. - Accounts receivable from third parties increased to RMB 479,041,000 as of June 30, 2024, up from RMB 380,572,000 as of December 31, 2023[129]. Foreign Exchange and Currency Impact - The company recorded a foreign exchange loss of RMB 313,859,000 due to the depreciation of the Nigerian Naira against the RMB by approximately 41% during the reporting period[157].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 2,683,496 thousand, an increase from RMB 2,413,143 thousand in the same period of 2023, representing a growth of approximately 11.2%[2] - Gross profit for the same period was RMB 270,353 thousand, significantly up from RMB 106,364 thousand in 2023, indicating a gross margin improvement[2] - The company reported a net loss of RMB 136,888 thousand for the six months ended June 30, 2024, compared to a net loss of RMB 138,642 thousand in the prior year, showing a slight improvement[3] - Total comprehensive loss for the period was RMB 450,421 thousand, down from RMB 653,351 thousand in the same period last year, reflecting a reduction of approximately 30.9%[3] - Revenue from customer contracts for the six months ended June 30, 2024, was RMB 2,683,496 thousand, an increase of 27.4% compared to RMB 2,107,111 thousand for the same period in 2023[15] - The group’s main business revenue for the first six months of 2024 was RMB 2,683,496,000, an increase of approximately 27% compared to RMB 2,107,111,000 in the same period of 2023[51] - The group recorded a loss of RMB 136,888,000 in the first six months of 2024, which was relatively stable compared to a loss of RMB 138,642,000 in the same period of 2023[59] Assets and Liabilities - Current assets as of June 30, 2024, amounted to RMB 11,313,565 thousand, a decrease from RMB 11,622,691 thousand at the end of 2023[4] - Total liabilities decreased to RMB 9,099,570 thousand from RMB 9,433,799 thousand, reflecting a reduction of about 3.5%[6] - The company's equity attributable to shareholders decreased to RMB 1,085,767 thousand from RMB 1,518,326 thousand, indicating a decline of approximately 28.5%[6] - As of June 30, 2024, the group's current liabilities net amount was RMB 4,894,891,000, down from RMB 6,096,247,000 as of December 31, 2023[9] - Total accounts receivable and notes receivable, net of loss provisions, amounted to RMB 415,134,000 as of June 30, 2024, slightly down from RMB 416,257,000 at the end of 2023[25] - Accounts payable and notes payable totaled RMB 1,044,779,000 as of June 30, 2024, compared to RMB 622,186,000 at the end of 2023, indicating a substantial increase[29] - Non-current liabilities increased by approximately 41% to RMB 4,644,553,000 as of June 30, 2024, compared to RMB 3,301,840,000 as of December 31, 2023, primarily due to an increase in long-term bank loans and other borrowings[61] Cash Flow and Financing - Cash and cash equivalents increased to RMB 1,728,550 thousand from RMB 1,210,846 thousand, indicating a growth of approximately 42.6%[5] - The group has unutilized bank financing of RMB 1,043,692,000 as of June 30, 2024, and expects to secure additional bank loans and borrowings of RMB 380,558,000[10] - The group received financial support in the form of loans from its major shareholder, totaling RMB 1,378,643,000, and additional financial support of RMB 1,228,276,000 due to related parties[10] - The group believes it will have sufficient funds to meet its liabilities due within the next twelve months based on cash flow forecasts[10] - Financing costs for the six months ended June 30, 2024, were RMB 239,933 thousand, up from RMB 206,705 thousand in the previous year[18] - Financing costs increased by approximately 37% to RMB 229,773,000 in the first six months of 2024, up from RMB 167,231,000 in the same period of 2023, primarily due to increased borrowings from newly consolidated subsidiaries[57] Operational Highlights - The company continues to focus on the production, marketing, and distribution of glass and glass products, as well as the design and installation of glass production lines and R&D of glass production technology[7] - In the first half of 2024, the company produced 30.72 million weight boxes of various glass types, an increase of approximately 28% year-on-year, and sold 25.25 million weight boxes, up about 22% year-on-year[36] - The average selling price for glass was RMB 99.0 per weight box, reflecting a year-on-year increase of approximately 6%[36] - The company has two photovoltaic glass production lines and three low-emissivity (Low-E) glass production lines, focusing on energy-saving building glass[35] - The company has enhanced its "cost reduction and efficiency improvement" measures, increasing the sales proportion of high value-added glass products for automotive, home appliances, and mirrors[41] - The company is actively pursuing overseas development opportunities, focusing on the construction preparation of new energy projects in Egypt along the Belt and Road Initiative[40] Research and Development - Research and development costs (excluding capitalized costs) were RMB 11,621 thousand for the six months ended June 30, 2024, compared to RMB 15,940 thousand in the previous year[19] - The group aims to expand its core competitiveness by developing new types of glass materials, including high-strength and smart glass[48] Corporate Governance and Compliance - The company has not adopted any new standards or interpretations that have not yet come into effect during the reporting period[11] - The company is committed to ensuring the accuracy of the information provided in the mid-term report[78] - The company has complied with the Corporate Governance Code as of June 30, 2024[76] - All directors have confirmed compliance with the standards set out in the Securities Trading by Directors of Listed Issuers Code[77] - The company actively promotes investor relations and communication with institutional investors and financial analysts[75] Shareholder Information - The company did not declare an interim dividend for the six months ending June 30, 2024, while an interim dividend of RMB 30.41 million was approved for the same period in 2023[31] - The group’s average number of ordinary shares outstanding for the six months ended June 30, 2024, was 1,684,218,000, unchanged from the same period in 2023[23] - The maximum number of reward shares that can be granted under the share award plan is limited to 183,621,825 shares, which is 10% of the total issued shares as of June 30, 2024[71] - The share award plan was originally set to expire on December 12, 2021, but has been extended for another 10 years until December 12, 2031[71] - The company has maintained a public float of at least 25% of its issued share capital as required by the Hong Kong Stock Exchange[73]

Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 5,307,924,000, an increase of 22.6% compared to RMB 4,327,196,000 in 2022[11] - The net loss for the year was RMB 487,408,000, compared to a profit of RMB 101,775,000 in the previous year[11] - The group's sales cost rose from RMB 3.689 billion in the year ended December 31, 2022, to RMB 5.008 billion in the year ended December 31, 2023, representing an increase of approximately 36%[26] - The sales revenue of colorless glass significantly increased by 41%, contributing RMB 2.82 billion, which accounted for 53.1% of total revenue[71] - The sales revenue of energy-saving and new energy glass surged by 167%, reaching RMB 703 million, following the launch of a new photovoltaic glass production line[72] - The average selling price of glass products in 2023 was RMB 96 per heavy box, a decrease of 11% compared to last year[40] - The average selling price decreased by 11% compared to the previous year, impacting revenue despite increased sales volume[70] Cost and Expenses - Gross profit decreased to RMB 299,511,000 from RMB 638,189,000, reflecting a gross margin drop from 14.7% to 5.6%[11] - The financing cost increased by 46% to RMB 390,000,000 from RMB 268,000,000, primarily due to increased borrowing and rising costs of USD-denominated debt[14] - The group reported a significant increase in administrative expenses to RMB 394,344,000 from RMB 330,717,000, reflecting a rise of 19.3%[11] - The company's administrative expenses rose by 19% to RMB 394 million, primarily due to an increase in employee numbers and average salaries[85] - The group reported other operating expenses of approximately RMB 142 million for the year ended December 31, 2023, compared to none in the previous year, due to asset impairment provisions[28] Assets and Liabilities - The total assets of the company as of December 31, 2023, were RMB 14,960,243,000, compared to RMB 13,285,303,000 in 2022, representing a growth of 12.6%[11] - The total liabilities increased to RMB 12,735,639,000 from RMB 9,994,404,000, indicating a rise of 27.5%[11] - The company's current assets decreased by approximately 9% from RMB 3.666 billion to RMB 3.338 billion, mainly due to reductions in inventory and accounts receivable[87] - The company's current liabilities increased by approximately 45% from RMB 6.489 billion to RMB 9.434 billion, largely due to an increase in accrued expenses and short-term bank loans[87] - The debt-to-equity ratio as of December 31, 2023, was 0.64, up from 0.60 on December 31, 2022, while the current ratio decreased to 0.35 from 0.57 in the same period[99] - The asset-liability ratio increased to 0.85 as of December 31, 2023, from 0.75 as of December 31, 2022[99] Production and Operations - The group currently operates 16 float glass production lines with a daily melting capacity of 8,600 tons, of which 13 lines are operational as of December 31, 2023[30] - In 2023, the photovoltaic glass production volume increased by 54% year-on-year to approximately 24.78 million tons, while the installed capacity of photovoltaic power generation grew by 148% year-on-year to about 217 GW[25] - The group is actively developing energy-saving glass products, such as "online Low-E China Glass Blue," achieving stable mass production[18] - The company aims to improve production line energy consumption indicators and capacity utilization efficiency through technical upgrades and cost-reduction measures[18] - The group is focusing on digital transformation and smart production to improve efficiency and product quality[50] Strategic Initiatives - The company plans to accelerate the smart transformation and digitalization process to enhance operational efficiency[19] - The group plans to continue expanding in the "three new" industries (new glass, new materials, new energy) and enhance its international presence through a "going out" strategy[35] - The group is focusing on the development of overseas emerging markets, with significant contributions from projects in Nigeria and Italy to overall performance[33] - The group has formed a strategic investment cooperation for a new energy glass project in Egypt, aligning with the Belt and Road Initiative[52] - The company aims to enhance its core competitiveness by optimizing production processes in the new energy and deep processing glass sectors[58] Shareholder and Governance - The major shareholder, New Glory Fund L.P., holds 272,926,000 shares, representing 14.86% of the total shares[131] - The second largest shareholder, 凯盛科技集团有限公司, holds 416,424,621 shares, representing 22.68% of the total shares[131] - The company has received annual independence confirmations from all independent non-executive directors, affirming their independence as of the report date[122] - The board of directors will review and determine their remuneration based on performance and market conditions, with no director participating in decisions regarding their own remuneration[125] Market Outlook - The Chinese flat glass industry is expected to experience supply-side contraction due to strict capacity control and enhanced environmental policies, while demand is anticipated to improve with economic recovery and accelerated renovation of old neighborhoods[153] - The float glass market is expected to gradually improve due to structural reforms and macroeconomic adjustments aimed at establishing a long-term mechanism for the real estate sector[168] - The demand for energy-saving new glass products, such as photovoltaic and solar thermal glass, is expected to grow significantly under the national "dual carbon" policy[153] Miscellaneous - The company did not recommend the distribution of a final dividend for the year ended December 31, 2023, consistent with the previous year[101] - Charitable donations for the year amounted to approximately RMB 80,000, a decrease from RMB 530,200 in the previous year[109] - Revenue from the top five customers accounted for 11% of total sales, while 39% of procurement came from the top five suppliers, with the largest supplier accounting for 21% of total procurement[102]

Financial Performance - The group reported total revenue of RMB 5,307,924,000 for the year ending December 31, 2023, compared to RMB 4,327,196,000 in 2022, representing an increase of approximately 22.6%[39]. - The gross profit for the year was RMB 299,511,000, a significant decrease from RMB 638,189,000 in the previous year, indicating a decline of about 53%[39]. - The group incurred a net loss of RMB 487,408,000 for the year, compared to a net profit of RMB 101,775,000 in 2022, reflecting a substantial downturn in financial performance[48]. - The total comprehensive loss for the year was RMB 1,116,831,000, compared to a total comprehensive income of RMB 10,987,000 in the previous year[53]. - The revenue from service contracts decreased to RMB 292,377,000 in 2023 from RMB 326,686,000 in 2022, a decline of approximately 10%[93]. - The net income before tax showed a loss of RMB 550,624,000 in 2023 compared to a profit of RMB 85,318,000 in 2022[108]. - The company reported a basic loss attributable to ordinary equity shareholders of RMB 409,756,000 for the year ended December 31, 2023, compared to a profit of RMB 116,168,000 in 2022[139]. Assets and Liabilities - As of December 31, 2023, the group's cash and cash equivalents amounted to RMB 1.211 billion, a decrease from RMB 1.350 billion as of December 31, 2022, with 53% in RMB, 6% in USD, and 14% in EUR[7]. - The group’s total assets related to property, plant, and equipment, and construction in progress amounted to approximately RMB 2.004 billion as of December 31, 2023, up from RMB 687 million as of December 31, 2022[8]. - The group had total bank loans of RMB 9.423 billion, with 80.6% denominated in RMB and 18.9% in USD[7]. - The total current liabilities rose to RMB 9,433,799,000 in 2023, compared to RMB 6,489,017,000 in 2022, indicating an increase of about 45%[83]. - The total assets minus current liabilities stood at RMB 5,526,444,000 in 2023, down from RMB 6,796,286,000 in 2022, reflecting a decrease of about 19%[83]. - Non-current liabilities decreased to RMB 3,301,840,000 in 2023 from RMB 3,505,387,000 in 2022, a reduction of approximately 6%[83]. - The group reported a net asset value of RMB 2,224,604,000 in 2023, down from RMB 3,290,899,000 in 2022, indicating a decline of about 32%[83]. Operational Highlights - The group has diversified its natural gas supply channels under the "increase production and ensure supply" policy, with demand steadily increasing due to its efficiency and low-carbon advantages[27]. - The group is focusing on digital transformation and smart upgrades to improve operational efficiency[34]. - The company is focusing on optimizing procurement strategies to control raw material costs through centralized and opportunistic purchasing methods, ensuring stable supply and production safety[197]. - The company is enhancing its performance incentive system to encourage employee engagement and support its goals for internationalization and sustainable high-quality development[198]. - The company is implementing intelligent transformation and digitalization strategies, utilizing technologies such as industrial internet and big data to improve production efficiency and product quality[199]. Investments and Acquisitions - The group recorded goodwill of RMB 170.5 million following the acquisition of approximately 51.47% equity in Gansu Daming Technology Co., Ltd. for RMB 312,982,380[25]. - The company agreed to acquire approximately 51.47% equity in Gansu Kaisheng Daming Solar Technology Co., Ltd. for a total consideration of RMB 313,000,000[153]. - The company acquired controlling interest in Gansu Kaisheng Daming Solar Technology Co., which has a production line with a daily melting capacity of 600 tons of ultra-white float glass and various solar-related production lines, enhancing its strategic layout in Northwest China[189]. - The company expects the total net profit of Gansu Daming Group to not be less than RMB 210,000,000 during the warranty period ending December 31, 2026[153]. Employee and Operational Costs - Employee costs increased to RMB 525,980,000 in 2023 from RMB 441,410,000 in 2022, reflecting a rise of approximately 19.1%[130]. - Operating expenses for the year amounted to approximately RMB 1.42 billion, which was not recorded in the previous year, attributed to asset impairment provisions[37]. - The total cost of inventory, including employee costs, R&D costs, and depreciation, amounted to RMB 769,100,000 in 2023, up from RMB 623,600,000 in 2022, representing an increase of approximately 23.4%[130]. Research and Development - The company’s research and development team successfully launched a new offline Low-E glass production line in Jiangsu, and began mass production of transparent conductive oxide (TCO) glass, which is expected to create opportunities in the new energy sector[193]. - Research and development costs (excluding capitalized costs) decreased to RMB 30,476,000 in 2023 from RMB 48,819,000 in 2022, a decline of 37.5%[106]. Market and Economic Conditions - The global economic growth momentum is declining due to geopolitical conflicts and inflation, but the Chinese economy is stabilizing with government efforts to promote high-quality development[187]. - The company continues to focus on overseas emerging market development opportunities, with significant benefits and stable growth from overseas operations[162]. - The company is expanding its market presence in the photovoltaic glass sector, with effective progress in market development for new products[195]. Financial Assistance and Support - Financial assistance received from the largest shareholder, Kaisheng Technology Group Co., Ltd., amounted to RMB 1,298,600,000[62]. - The amount payable to Kaisheng Group and its affiliates as of December 31, 2023, was RMB 1,216,700,000[62]. - The group maintained a stable business relationship with major banks to secure ongoing support for financing of RMB 873,400,000[89]. Tax and Regulatory Matters - The company’s subsidiaries in China are subject to a corporate income tax rate of 25%[136]. - The deferred tax expense for the year was RMB 32,870,000, compared to RMB 74,387,000 in 2022, indicating a decrease of approximately 56%[134].

Production and Sales Performance - In the first half of 2023, the company produced approximately 24.03 million weight cases of various glass products, a 14% increase year-on-year, while sales rose by 26% to 20.77 million weight cases[11]. - The revenue from energy-saving and new energy glass increased significantly by 97% year-on-year, driven by the launch of a photovoltaic glass production line[28]. - The company reported a decline in revenue from colorless, colored, and coated glass segments due to lower prices driven by a sluggish real estate market in China[9]. - The company’s main business revenue for the first six months of 2023 was RMB 2,107,111,000, an increase of approximately 2% compared to RMB 2,061,978,000 in the same period of 2022[27]. - Revenue from mainland China and Hong Kong accounted for RMB 1,483,987,000, up from RMB 1,400,117,000 in the previous year, showing an increase of approximately 6%[117]. - Revenue from Nigeria decreased to RMB 189,741,000 from RMB 226,815,000, a decline of about 16.4%[117]. Pricing and Cost Analysis - The average selling price of glass products was approximately RMB 93 per weight case, reflecting a 20% decrease compared to the same period last year[11]. - The sales cost for the first six months of 2023 was RMB 2,000,747,000, up about 22% from RMB 1,635,531,000 in the same period of 2022, primarily due to an increase in the quantity of glass products sold[30]. - The average market price of colorless glass decreased by 9% year-on-year, but the company managed to limit the revenue decline to only 1% by increasing the proportion of high-value-added functional glass products[29]. - The overall procurement prices for raw and fuel materials remain high despite some price declines in the first half of 2023[13]. Financial Performance - The gross profit for the first six months of 2023 was RMB 106,364,000, a decrease of approximately 75% compared to RMB 426,447,000 in the same period of 2022, primarily due to a slight increase in sales revenue and a significant rise in cost of sales[32]. - The company recorded a loss of RMB 138,642,000 in the first half of 2023, compared to a profit of RMB 121,149,000 in the same period of 2022, mainly due to the decline in gross profit[38]. - The net loss attributable to equity shareholders was RMB 103,276 thousand, a decline from a profit of RMB 115,708 thousand in the same period last year[92]. - Total comprehensive loss for the period amounted to RMB 653,351 thousand, compared to a total comprehensive income of RMB 83,304 thousand in the prior year[95]. - The company reported a basic and diluted loss per share of RMB 6.132 for the period, compared to earnings per share of RMB 6.881 in the same period last year[92]. Investment and Expansion Strategy - The company is actively expanding into the "new glass, new materials, new energy" sectors, with successful launches of several production lines, including TCO coating technology and Low-E coating glass production lines[14]. - The company plans to continue its "going out" strategy, enhancing overseas market expansion and safety production, aiming to improve the contribution of overseas companies to overall performance[25]. - The company’s strategic focus includes a combination of organic growth, mergers and acquisitions, and international expansion[14]. Research and Development - Research and development costs (excluding capitalized costs and related amortization) surged to RMB 15,940 thousand in the first half of 2023, compared to only RMB 601 thousand in the same period of 2022, indicating a significant increase in investment in innovation[125]. - The company aims to enhance its core competitiveness through technological innovation and the application of proprietary technology in the production of coated glass[19]. Shareholder and Capital Management - The board has decided not to declare an interim dividend for the six months ended June 30, 2023[52]. - The company has a share incentive plan managed by Bank of Communications Trust Co., Ltd., which is responsible for purchasing existing shares on the market[60]. - The total number of issued ordinary shares of the company is 1,836,218,258 shares[54]. - The company maintained a public float of at least 25% of its issued share capital as required by the listing rules[77]. Debt and Financing - Current liabilities increased by approximately 4% from RMB 6,489,017,000 on December 31, 2022, to RMB 6,758,978,000 on June 30, 2023, mainly due to an increase in the current portion of long-term bank loans and other borrowings[41]. - The debt-to-equity ratio as of June 30, 2023, was 0.66, up from 0.60 on December 31, 2022, indicating an increase in leverage[46]. - The group has secured financial support of RMB 2,226,100,000 from its largest shareholder, which is expected to continue[113]. - The group maintains stable long-term relationships with major banks to ensure ongoing support for its financing needs[113]. Operational Efficiency and Digital Transformation - The company is advancing its digital transformation and smart upgrades to improve production efficiency and product quality through the integration of industrial internet, big data, and artificial intelligence technologies[20]. - The company is focusing on optimizing procurement strategies to control raw material costs and ensure stable supply through strategic partnerships with quality suppliers[18]. Employee and Management - The employee count increased to approximately 4,346 as of June 30, 2023, up from about 4,162 on December 31, 2022, primarily due to new production lines and enhanced recruitment of young talent[78]. - The total remuneration for key management personnel was RMB 1,882,000 in the first half of 2023, down from RMB 2,400,000 in the same period of 2022, reflecting a decrease of approximately 21.6%[173]. Market Outlook - The glass industry is expected to enter a traditional peak season in the second half of 2023, with anticipated demand growth due to improved real estate policies and consumption stimulation in the automotive and new energy sectors[21]. - Future outlook includes continued investment in new product development and technology advancements to enhance market competitiveness[185].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 CHINA GLASS HOLDINGS LIMITED * 中 國 玻 璃 控 股 有 限 公司 （於百慕達註冊成立之有限公司） 3300 （股份代號： ） 截至二零二三年六月三十日止六個月之中期業績公告 中國玻璃控股有限公司（「本公司」）董事會（分別為「董事」及「董事會」）謹此宣佈 本公司及其附屬公司（統稱為「本集團」）截至二零二三年六月三十日止六個月之 未經審核綜合中期業績，連同二零二二年同期之比較數字。 ...

Asset Management and Valuation - The estimated useful life for buildings and structures ranges from 8 to 60 years, while machinery and equipment range from 2 to 35 years[1]. - The estimated useful life for intangible assets such as technology is between 5 to 20 years, and customer relationships are estimated at 10 years[5]. - The company reviews the estimated useful lives and residual values of assets annually[5]. - Gains or losses from the disposal of property, plant, and equipment are recognized based on the difference between the net proceeds and the carrying amount[1]. - The company continues to assess impairment indicators for various assets, including property, plant, and equipment, ensuring financial prudence[63]. - The recoverable amount of assets is determined as the higher of fair value less costs to sell and value in use, with future cash flows discounted to present value using a pre-tax discount rate[64]. Lease Accounting - Lease liabilities are initially recognized at the present value of lease payments, discounted using the implicit rate or incremental borrowing rate[10]. - The company does not capitalize short-term leases and low-value asset leases, recognizing lease payments as expenses over the lease term[7]. - The company will reassess lease liabilities if there are changes in lease payments or if the company expects to exercise purchase or renewal options[11]. - The company assesses whether a contract contains a lease at the contract's inception, determining control over the identified asset's use[6]. Financial Management and Risk - The group confirmed expected credit losses for financial assets measured at amortized cost, including cash and cash equivalents, receivables, and other receivables[19]. - The expected credit loss for receivables and contract assets is estimated using a provision matrix based on the group's historical credit loss experience[21]. - The financial risk management details are outlined in the consolidated financial statements, addressing credit, liquidity, interest rate, and currency risks[26]. - The company emphasizes the importance of credit loss and asset impairment assessments based on observable events such as significant financial difficulties of debtors and breaches of contracts[58]. - The company applies a write-off policy for financial assets when there is no realistic prospect of recovery, indicating a proactive approach to managing credit risk[59]. Employee Management and Development - As of December 31, 2022, the total number of employees in the group was 4,162, with a turnover rate of approximately 9.58%[40]. - The employee age distribution shows that 51.4% are aged 30-49, while 14.8% are aged 50-60 and above[41]. - The group implemented a performance-oriented incentive system to enhance employee motivation and optimize performance assessment standards[40]. - The group reported a significant decrease in work-related injuries, with a total of 343 days lost due to injuries in 2022, which is a notable reduction compared to 2021[44]. - The group maintained a zero COVID-19 death toll among employees in 2022, demonstrating effective pandemic control measures[47]. - The group emphasizes the importance of employee training and skill enhancement, organizing training sessions based on business needs[48]. - The company reported a training participation rate of 95.1% for senior management, 97.1% for middle management, and 98.8% for general employees, indicating a strong commitment to employee development[75]. - The average training hours for general employees was 73.9 hours, reflecting the company's investment in workforce skills enhancement[75]. - The company has implemented performance tracking and incentive measures to enhance employee income and morale, fostering a positive work environment[76]. - The company actively promotes health and wellness activities among employees, enhancing team cohesion and corporate identity[76]. - The company conducts annual awards and recognition programs to motivate employees and create a culture of excellence[76]. - The group actively recruits local labor to support the operation of new overseas production lines, contributing to employee growth[40]. Environmental Management and Sustainability - The company invested a total of RMB 131 million in environmental protection facilities and upgrades during the year[91]. - In 2022, the company achieved a 47.70% reduction in sulfur dioxide emissions, a 21.14% reduction in nitrogen oxide emissions, and a 42.39% reduction in particulate matter emissions, despite a 7% decrease in production scale[94]. - The company’s waste management includes approximately 18,000 tons of desulfurization waste, 600 tons of household waste, and 2,000 tons of discarded packaging materials annually[98]. - The company has implemented the ISO 14001 environmental management system across all bases to enhance environmental management levels[88]. - The company’s environmental management systems are subject to annual internal and third-party audits for optimization[88]. - The company emphasizes the development of a circular economy through increased waste heat power generation and wastewater recycling[89]. - The Weihai base was awarded the title of "2022 Shandong Province Green Factory"[90]. - The company ensures that all bases have installed online monitoring systems for real-time environmental compliance[97]. - In 2022, the total greenhouse gas emissions from various production bases amounted to 1,403,308 tons, a decrease from 1,523,658 tons in 2021, representing a reduction of approximately 7.9%[99]. - The company strictly adheres to China's environmental protection laws, with all subsidiaries equipped with complete environmental protection facilities, achieving compliance with emission standards[129]. - The company has not experienced any major environmental pollution incidents in the year, indicating effective environmental management mechanisms[129]. - The company has implemented strict management systems to prevent major environmental pollution incidents and product quality claims[125]. Corporate Governance - The board is responsible for overseeing the group's ESG governance, including risk management and policy implementation[33]. - The board consists of 7 members, including 1 executive director, 3 non-executive directors, and 3 independent non-executive directors, ensuring a balanced structure for independent judgment[193]. - The board has adopted a succession planning policy to ensure orderly transitions for director and CEO appointments[195]. - The company has established a corporate governance framework that includes policies on diversity, remuneration, and compliance with legal and regulatory requirements[190]. - The board is responsible for effective leadership and control of the company, ensuring decisions align with the best interests of the company and its shareholders[197]. - The board delegates authority to management for daily operations, with department heads responsible for various business aspects[199]. - Management is required to provide timely and sufficient information to the board for informed decision-making[200]. - The board monitors the group's operational and financial performance through its committees[198]. - The independent non-executive directors have confirmed their independence according to the guidelines set out in the listing rules[194]. - The company has established appropriate liability insurance for directors and senior officers to address potential legal actions[189]. Strategic Initiatives and Market Position - The group is a leading flat glass manufacturer in China, focusing on R&D and production of energy-saving and environmentally friendly glass[29]. - The company has implemented a "going out" strategy, which has significantly contributed to its revenue growth[111]. - The company has established new departments focusing on new energy and deep processing to align with national sustainable development policies[111]. - The company has optimized procurement strategies to mitigate costs, including centralized and staggered purchasing methods[114]. - The company has established a strategic partnership with over 650 suppliers, including 230 raw material suppliers and 270 main equipment suppliers, ensuring a stable supply chain[166]. - The company is actively promoting low-carbon economic solutions and has invested in the research and development of energy-saving products, including online Low-E coated glass and photovoltaic glass[159]. - The company aims to strengthen its brand "China Glass" and improve capital market management by actively engaging with investor relations and media resources[155]. - The company has developed a strict core technology management system to enhance its research and innovation capabilities in high-end energy-saving products[161]. - The company has adopted a comprehensive quality control system that adheres to ISO 9001:2015 standards, ensuring product quality from design to after-sales service[160]. - The company achieved a total product yield rate of 92.52% in 2022, with a unit weight box comprehensive energy consumption of 12.12 kg standard coal, a decrease of 2.88% compared to 2021[138]. - The company constructed waste heat power generation systems at all bases, utilizing flue gas at 480℃ to generate steam at 2.16Mpa and 430℃, significantly reducing glass production costs[136]. - The company is actively promoting "cost reduction and efficiency enhancement" initiatives, focusing on optimizing raw material and fuel structures to effectively reduce energy consumption[152]. - The company has implemented various risk management and internal control procedures to achieve business objectives and ensure compliance with relevant laws and regulations[157].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不 負責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告 全部或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責 任。 CHINA GLASS HOLDINGS LIMITED * 中 國 玻 璃 控 股 有 限 公司 （於百慕達註冊成立之有限公司） 3300 （股份代號： ） 截至二零二二年十二月三十一日止年度之全年業績公告 中國玻璃控股有限公司（「本公司」）董事會（分別為「董事」及「董事會」）謹此公佈 本公司及其附屬公司（以下統稱「本集團」）截至二零二二年十二月三十一日止年 度之經審核綜合全年業績，以及二零二一年相應年度的可資比較數字。 ...

Production and Sales Performance - In the first half of 2022, China Glass Holdings produced approximately 21.17 million weight cases of various glass products, a 20% increase compared to the same period last year[11]. - The total sales of glass products reached 16.52 million weight cases, a decrease of 3% year-on-year[11]. - The average selling price of glass products was approximately RMB 116.4 per weight case, reflecting a 1% increase compared to the previous year[11]. Financial Performance - The company's revenue for the first six months of 2022 was RMB 2,061,978,000, an increase of approximately 2% compared to RMB 2,025,214,000 in the same period of 2021[31]. - Gross profit decreased by approximately 40% to RMB 426,447,000 in the first half of 2022, compared to RMB 714,699,000 in the same period of 2021, attributed to rising sales costs despite slight revenue growth[33]. - The company's profit for the first half of 2022 fell to RMB 121,149,000, down from RMB 302,148,000 in the same period of 2021, primarily due to declining gross profit and rising administrative expenses[39]. Cost and Expenses - Sales costs rose by approximately 25% to RMB 1,635,531,000 in the first half of 2022, up from RMB 1,310,515,000 in the previous year, primarily due to increased raw and fuel material costs[32]. - Administrative expenses rose by approximately 22% to RMB 158,350,000 in the first half of 2022, compared to RMB 130,021,000 in the same period of 2021, due to the acquisition of a new production line and costs during cold repair periods[35]. - Financing costs decreased by approximately 9% to RMB 128,787,000 in the first half of 2022, down from RMB 142,011,000 in the same period of 2021, benefiting from lower average interest rates on new borrowings[36]. Market Conditions - The domestic flat glass industry is facing challenges due to a sluggish real estate market and rising raw material costs[9]. - The company is closely monitoring market conditions to adjust procurement and marketing strategies effectively[14]. Strategic Focus and Development - The company is focusing on a mid-to-long-term development strategy that combines natural growth, acquisition growth, and international expansion[14]. - The company is actively promoting new glass, new materials, and new energy projects to enhance operational performance[14]. - The company is focusing on expanding its "three new projects" and enhancing its upstream and downstream industrial chain to achieve new breakthroughs in business development[26]. Shareholder and Equity Information - First Fortune Enterprises Limited holds 272,926,000 shares, representing approximately 14.86% of total shares[57]. - Right Lane Limited owns 307,926,000 shares, accounting for approximately 16.77% of total shares[57]. - The total number of issued shares as of June 30, 2022, is 1,836,218,258 shares[68]. Employee and Management - The group employed approximately 3,788 employees as of June 30, 2022, a slight decrease from 3,822 employees as of December 31, 2021, primarily due to increased efficiency and production line maintenance[104]. - The company plans to strengthen its management functions and implement measures to enhance employee satisfaction and optimize personnel structure for sustainable development[27]. Cash Flow and Financing - The net cash generated from operating activities for the six months ended June 30, 2022, was RMB 562,923,000, compared to RMB 406,726,000 in the previous year, representing a 38.4% increase[139]. - The company has unutilized bank financing of RMB 791,100,000 and plans to secure new financing of RMB 496,700,000[147]. - The company’s major shareholder, China National Building Material Group Corporation, has provided financial support commitments[147]. Assets and Liabilities - Current assets increased from RMB 2,477,825,000 as of December 31, 2021, to RMB 3,048,431,000 as of June 30, 2022, reflecting a growth of about 23%[41]. - Non-current liabilities surged from RMB 1,236,795,000 as of December 31, 2021, to RMB 2,015,736,000 as of June 30, 2022, marking a significant increase of about 63%[43]. - The company’s total liabilities as of June 30, 2022, were RMB 4,133,880,000, an increase of 8.0% from RMB 3,826,420,000 as of December 31, 2021[200]. Compliance and Governance - The company maintained compliance with the Corporate Governance Code, emphasizing the importance of high-quality board governance and effective internal controls[108]. - The audit committee has been established and has reviewed the accounting principles and practices adopted by the group, ensuring transparency and accountability[108]. Other Financial Metrics - Basic earnings per share decreased to RMB 6.881 from RMB 16.480, reflecting a decline of about 58.3%[118]. - The total capital expenditure for property, plant, and equipment for the six months ended June 30, 2022, was RMB 760,000,000, an increase of 42.3% from RMB 534,300,000 in the same period of 2021[178]. - The group recognized a depreciation and amortization expense of RMB 170,547,000 for the six months ended June 30, 2022, compared to RMB 132,541,000 for the same period in 2021, representing an increase of 28.7%[176].