EF001 EF001 免責聲明 | 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 | | | --- | --- | | 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。 | | | 股票發行人現金股息公告 | | | 發行人名稱 | 中國織材控股有限公司 | | 股份代號 | 03778 | | 多櫃檯股份代號及貨幣 | 不適用 | | 相關股份代號及名稱 | 不適用 | | 公告標題 | 截至二零二五年六月三十日止六個月之中期股息 | | 公告日期 | 2025年8月28日 | | 公告狀態 | 新公告 | | 股息信息 | | | 股息類型 | 中期（半年期） | | 股息性質 | 普通股息 | | 財政年末 | 2025年12月31日 | | 宣派股息的報告期末 | 2025年6月30日 | | 宣派股息 | 每 股 0.015 HKD | | 股東批准日期 | 不適用 | | 香港過戶登記處相關信息 | | | 派息金額及公司預設派發貨幣 | 每 股 0.015 HKD | | 匯率 | ...

[Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) The Group recorded an expanded net loss in the first half of 2025, primarily due to decreased revenue and a significant increase in income tax expense, which offset the growth in gross profit | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 511,461 | 577,898 | -11.5% | | Cost of Sales | (479,335) | (552,811) | -13.3% | | Gross Profit | 32,126 | 25,087 | +28.1% | | Other Income | 11,621 | 12,896 | -9.9% | | Other Losses | (759) | (1,321) | -42.5% | | Distribution and Selling Expenses | (10,139) | (9,411) | +7.7% | | Administrative Expenses | (21,820) | (21,059) | +3.6% | | Finance Costs | (8,643) | (10,236) | -15.6% | | Profit/(Loss) Before Tax | 2,386 | (4,044) | N/A (Turned from loss to profit) | | Income Tax (Expense)/Credit | (12,482) | 996 | N/A (Turned to expense) | | Loss and Total Comprehensive Expense for the Period | (10,096) | (3,048) | +231.2% | | Basic Loss Per Share (RMB cents) | (0.81) | (0.24) | +237.5% | [Condensed Consolidated Statement of Financial Position](index=2&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's current liabilities still exceeded current assets, but net current liabilities decreased, with total assets and net assets slightly declining while capital structure remained stable | Metric | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Non-current Assets | 872,244 | 909,274 | (37,030) | | Current Assets | 507,483 | 488,696 | 18,787 | | Current Liabilities | 621,031 | 684,620 | (63,589) | | Net Current Liabilities | (113,548) | (195,924) | 82,376 | | Non-current Liabilities | 92,000 | 36,558 | 55,442 | | Net Assets | 666,696 | 676,792 | (10,096) | | Total Equity | 666,696 | 676,792 | (10,096) | | Cash and Bank Balances | 195,142 | 209,091 | (13,949) | | Bank and Other Borrowings (Current) | 317,561 | 402,732 | (85,171) | | Bank and Other Borrowings (Non-current) | 55,000 | 10,000 | 45,000 | - As of June 30, 2025, the Group's current liabilities exceeded its current assets by approximately **RMB 113,548,000**, and it recorded a net loss of approximately **RMB 10,096,000** for the period, indicating significant uncertainty regarding its ability to continue as a going concern[5](index=5&type=chunk) - The Board, based on the successful renewal and acquisition of new bank credit facilities (approximately **RMB 40,000,000** and **RMB 18,000,000**), and the ability to secure further financing, believes the Group has sufficient financial resources to meet its working capital needs and financial obligations for the next 12 months, thus preparing financial information on a going concern basis[5](index=5&type=chunk)[6](index=6&type=chunk) [Notes to the Condensed Consolidated Financial Information](index=4&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Information) This section details the basis of preparation, accounting policies, segment information, and the composition and changes of various income and expenses, along with an analysis of receivables and payables [Basis of Preparation](index=4&type=section&id=Basis%20of%20Preparation) These unaudited condensed consolidated financial statements are prepared in accordance with IAS 34 and the HKEX Listing Rules, adopting consistent accounting policies with the prior year's audited consolidated financial statements, despite current liabilities exceeding current assets and a net loss - The Group's current liabilities exceeded current assets by approximately **RMB 113,548,000**, and it recorded a net loss of approximately **RMB 10,096,000** for the period, constituting a material uncertainty regarding its ability to continue as a going concern[5](index=5&type=chunk) - The Board has secured the renewal of short-term bank borrowings of approximately **RMB 40,000,000** and obtained new bank credit facilities of approximately **RMB 18,000,000** to support its going concern[5](index=5&type=chunk) [Adoption of New and Revised IFRSs](index=5&type=section&id=Adoption%20of%20New%20and%20Revised%20IFRSs) The Group has adopted all new and revised IFRSs effective January 1, 2025, with no significant impact on the current period's financial information - The Group has adopted all new and revised IFRSs effective January 1, 2025, which had no impact on the unaudited condensed consolidated financial information[7](index=7&type=chunk) [Segment Information](index=6&type=section&id=Segment%20Information) The Group operates in a single segment, manufacturing and selling yarn, with over 99% of non-current assets and revenue derived from China, and no single customer accounting for more than 10% of total revenue - The Group's operating business is attributed to a single operating segment, focusing on the production and sale of yarn[8](index=8&type=chunk) - Over **99%** of the Group's non-current assets and revenue are derived from China[9](index=9&type=chunk) - During both periods, no single customer accounted for more than **10%** of the Group's total revenue[10](index=10&type=chunk) [Revenue](index=6&type=section&id=Revenue) The Group's primary business is the production and trading of yarn, with revenue recognized at the point of goods delivery - The Group's main business is the production and trading of yarn, with revenue recognized at the point of goods delivery[10](index=10&type=chunk) [Other Income](index=7&type=section&id=Other%20Income) The Group's other income, primarily comprising interest income, government grants, scrap sales, and rental income, decreased in the current period | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Interest Income | 1,308 | 1,642 | (334) | | Government Grants | 187 | 1,063 | (876) | | Scrap Sales Revenue | 9,388 | 9,271 | 117 | | Rental Income | 700 | 588 | 112 | | Others | 38 | 332 | (294) | | **Total** | **11,621** | **12,896** | **(1,275)** | [Other Losses](index=7&type=section&id=Other%20Losses) The Group's other losses, mainly from net foreign exchange losses and losses on disposal of property, plant, and equipment, decreased in the current period | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Net Foreign Exchange Loss | (370) | (681) | 311 | | Loss on Disposal of Property, Plant and Equipment | (480) | (633) | 153 | | Reversal of Impairment Loss on Trade Receivables | 27 | – | 27 | | Realized Gain on Settlement of Derivative Financial Instruments | 64 | – | 64 | | Others | – | (7) | 7 | | **Total** | **(759)** | **(1,321)** | **562** | [Finance Costs](index=7&type=section&id=Finance%20Costs) The Group's finance costs, primarily interest on bank and other borrowings, decreased in the current period | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Interest on Bank and Other Borrowings | 8,643 | 10,236 | (1,593) | [Income Tax (Expense)/Credit](index=8&type=section&id=Income%20Tax%20(Expense)%2FCredit) The Group's income tax shifted from a credit in the prior period to an expense in the current period, mainly due to an increase in deferred tax liabilities from a change in the applicable tax rate for a Chinese subsidiary | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Current Tax: PRC Enterprise Income Tax - Provision for the Period | (1,500) | (500) | (1,000) | | Current Tax: PRC Enterprise Income Tax - Underprovision in Prior Years | (408) | – | (408) | | Deferred Tax | (10,574) | 1,496 | (12,070) | | **Total** | **(12,482)** | **996** | **(13,478)** | - The enterprise income tax rate for subsidiary Jiangxi Huachun Color Spinning Technology Development Co., Ltd. is expected to change from a **15%** preferential tax rate in H1 2024 to a **25%** normal tax rate in H1 2025, leading to an increase in income tax expense[17](index=17&type=chunk) [Loss for the Period](index=8&type=section&id=Loss%20for%20the%20Period) The Group's loss for the period is calculated after deducting key items such as depreciation and cost of inventories sold | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Depreciation - Owned Property, Plant and Equipment | 37,814 | 38,114 | (300) | | Depreciation - Right-of-use Assets | 801 | 815 | (14) | | Cost of Inventories Sold | 479,335 | 552,811 | (73,476) | [Dividends](index=9&type=section&id=Dividends) The Board declared an interim dividend of 1.5 HK cents per ordinary share, to be paid on or around October 15, 2025 - The Board declared an interim dividend of **1.5 HK cents** per ordinary share, which has not been recognized as a payable dividend in the current financial information[19](index=19&type=chunk) [Loss Per Share](index=9&type=section&id=Loss%20Per%20Share) The company's basic loss per share significantly increased due to an expanded net loss, with no potential dilutive shares | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Loss | (10,096) | (3,048) | (7,048) | | Number of Shares (thousands) | 1,246,700 | 1,246,700 | 0 | | Basic Loss Per Share (RMB cents) | (0.81) | (0.24) | (0.57) | - No diluted loss per share is presented for the six months ended June 30, 2025 and 2024, as there were no potential dilutive shares[22](index=22&type=chunk) [Trade and Other Receivables](index=9&type=section&id=Trade%20and%20Other%20Receivables) The Group's total trade and other receivables decreased, with a slight increase in trade receivables offset by reductions in prepayments to suppliers and other prepayments and receivables | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Trade Receivables (net of allowance for doubtful debts) | 10,877 | 9,588 | 1,289 | | Prepayments to Suppliers | 7,463 | 9,690 | (2,227) | | Prepayments and Other Receivables | 821 | 1,619 | (798) | | **Total** | **19,161** | **20,897** | **(1,736)** | Ageing Analysis of Trade Receivables (net of impairment allowance): | Ageing | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 30 days | 9,625 | 8,996 | | 31 to 90 days | 1,252 | 592 | | **Total** | **10,877** | **9,588** | [Trade and Other Payables](index=10&type=section&id=Trade%20and%20Other%20Payables) The Group's total trade and other payables increased, primarily due to higher trade payables and other accrued expenses | Item | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Trade Payables | 24,641 | 13,733 | 10,908 | | Other Payables | 8,761 | 9,185 | (424) | | Other Taxes Payable | 14,223 | 20,126 | (5,903) | | Accrued Salaries and Wages | 12,483 | 17,488 | (5,005) | | Other Accrued Expenses | 155,637 | 144,306 | 11,331 | | Payables for Acquisition of Property, Plant and Equipment | 206 | 686 | (480) | | **Total** | **215,951** | **205,524** | **10,427** | Ageing Analysis of Trade Payables: | Ageing | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | 0 to 30 days | 17,895 | 9,174 | | 31 to 90 days | 3,147 | – | | 91 to 180 days | 2,542 | 3,290 | | 181 to 365 days | – | 212 | | Over 365 days | 1,057 | 1,057 | | **Total** | **24,641** | **13,733** | [Operating Review and Outlook](index=11&type=section&id=Operating%20Review%20and%20Outlook) This section reviews the global and Chinese textile market environment, analyzes the Group's business performance and financial position, and outlines future market challenges and the company's strategies [Market Overview](index=11&type=section&id=Market%20Overview) In H1 2025, the global economy faced multiple challenges including geopolitical conflicts, high inflation and interest rates, and trade frictions, leading to volatile oil prices, weak cotton prices, and downward revisions in global GDP growth forecasts, keeping the textile industry under pressure - The global economy continues to face geopolitical risks such as the Russia-Ukraine conflict, Gaza conflict, and Israel-Iran conflict, alongside the dampening effects of high inflation and interest rates[25](index=25&type=chunk) - The 'reciprocal tariffs' policy implemented by the US Trump administration disrupted global trade order, exacerbating uncertainty[25](index=25&type=chunk) - International crude oil prices fluctuated sharply, falling from approximately **USD 80** per barrel to below **USD 60**, then rebounding to over **USD 75** due to geopolitical conflicts, with the downward trend in oil prices being unfavorable for the polyester yarn market[26](index=26&type=chunk) - International and Chinese domestic cotton prices remained generally stable but weak, primarily due to sluggish market demand[27](index=27&type=chunk) - The Chinese textile industry faces multiple challenges including a complex international trade environment, global supply chain adjustments, and high domestic production costs, resulting in continued weakness in both domestic and export markets[27](index=27&type=chunk) [Business Review](index=12&type=section&id=Business%20Review) The Group experienced a decrease in yarn product sales volume and revenue, but achieved gross profit growth through capacity replacement and product structure adjustment, actively responding to market competition, adjusting pricing strategies, and strengthening marketing efforts | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Yarn Product Sales Volume | approx. **45,254 tonnes** | approx. **49,113 tonnes** | -7.9% | | Yarn Product Production | approx. **51,113 tonnes** | approx. **50,000 tonnes** | +2.2% | | Yarn Product Revenue | **RMB 511.5 million** | **RMB 577.9 million** | -11.5% | | Gross Profit | approx. **RMB 32.1 million** | approx. **RMB 25.1 million** | +28.1% | | Loss Attributable to Owners of the Company | approx. **RMB 10.1 million** | approx. **RMB 3.0 million** | +236.7% | - Subsidiary Jiangxi Jinyuan Textile Co., Ltd. temporarily suspended production in Workshop No. 1 for renovation assessment, with its capacity transferred to the newly built Workshop No. 9, enhancing production efficiency while maintaining stable overall capacity[29](index=29&type=chunk) - The Group adjusted its product structure, shifting products from Jinyuan Workshop No. 5 from polyester yarn to melange polyester colored yarn, which has higher technical barriers and better profit margins[29](index=29&type=chunk) - To counter market competition and uncertainties from the US 'reciprocal tariffs' policy, the Group implemented an aggressive pricing strategy to ensure sales volume and maintain economies of scale[30](index=30&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) This section provides an in-depth analysis of the Group's financial performance, including changes in revenue, gross profit, expenses, tax, loss, liquidity, capital structure, and foreign exchange risk [Revenue](index=14&type=section&id=Revenue_FinancialReview) The Group's operating revenue decreased by 11.5% year-on-year, primarily due to reduced yarn product sales volume and lower average selling prices | Product Type | H1 2025 (RMB thousands) | Percentage (%) | H1 2024 (RMB thousands) | Percentage (%) | | :--- | :--- | :--- | :--- | :--- | | Polyester Yarn | 180,520 | 35.3% | 220,653 | 38.2% | | Polyester-Cotton Blended Yarn | 177,723 | 34.7% | 197,098 | 34.1% | | Melange Polyester Colored Yarn | 153,218 | 30.0% | 135,816 | 23.5% | | Others | – | – | 24,331 | 4.2% | | **Total** | **511,461** | **100.0%** | **577,898** | **100.0%** | - The decrease in operating revenue primarily resulted from a reduction in yarn product sales volume from approximately **49,113 tonnes** to approximately **45,253 tonnes**, and a decrease in average selling price from approximately **RMB 11,767** per tonne to approximately **RMB 11,302** per tonne[31](index=31&type=chunk) [Gross Profit and Gross Margin](index=14&type=section&id=Gross%20Profit%20and%20Gross%20Margin_FinancialReview) The Group's gross profit and gross margin both increased, primarily benefiting from lower raw material costs and product portfolio adjustments, despite a decrease in sales volume | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Gross Profit | approx. **RMB 32.1 million** | approx. **RMB 25.1 million** | +28.1% | | Gross Margin | approx. **6.3%** | approx. **4.3%** | +**2.0 percentage points** | - The increase in gross margin primarily stemmed from reduced cost of sales due to lower raw material costs and product portfolio adjustments, focusing more on high-margin melange polyester colored yarn products[32](index=32&type=chunk) [Other Income](index=15&type=section&id=Other%20Income_FinancialReview) The Group's other income decreased by 9.9%, mainly due to reduced government grants and interest income | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income | 11,600 | 12,900 | -9.9% | | Primary Reason | Decrease in government grants and interest income | | | [Other Losses](index=15&type=section&id=Other%20Losses_FinancialReview) The Group's other losses decreased by 42.5%, primarily due to a reduction in net foreign exchange losses and losses on disposal of property, plant, and equipment | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Other Losses | 800 | 1,300 | -42.5% | | Primary Reason | Decrease in net foreign exchange losses and losses on disposal of property, plant and equipment | | | [Distribution and Selling Expenses](index=15&type=section&id=Distribution%20and%20Selling%20Expenses_FinancialReview) The Group's distribution and selling expenses increased by 7.7%, mainly influenced by changes in customer structure and destination mix, with its proportion to total revenue also rising | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Distribution and Selling Expenses | 10,100 | 9,400 | +7.7% | | Percentage of Total Revenue | 2.0% | 1.6% | +0.4 percentage points | [Administrative Expenses](index=15&type=section&id=Administrative%20Expenses_FinancialReview) The Group's administrative expenses slightly increased by 3.6%, primarily due to higher staff costs, with its proportion to total revenue also rising | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 21,800 | 21,100 | +3.6% | | Percentage of Total Revenue | 4.3% | 3.6% | +0.7 percentage points | [Finance Costs](index=15&type=section&id=Finance%20Costs_FinancialReview) The Group's finance costs decreased by 15.6%, mainly due to reduced bank borrowings, a decrease in the Loan Prime Rate (LPR), and more favorable refinancing terms | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Finance Costs | 8,600 | 10,200 | -15.6% | | Primary Reason | Reduced bank borrowings, lower LPR, optimized refinancing terms | | | [Income Tax (Expense)/Credit](index=16&type=section&id=Income%20Tax%20(Expense)%2FCredit_FinancialReview) The Group's income tax shifted from a credit in the prior period to an expense in the current period, mainly due to an increase in deferred tax liabilities from a change in the applicable tax rate for a Chinese subsidiary | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Income Tax Expense/Credit | (12,500) | 1,000 | (13,500) | | Primary Reason | Change in applicable tax rate for a Chinese subsidiary leading to increased deferred tax liabilities | | | [Loss Attributable to Owners of the Company and Net Loss Margin](index=16&type=section&id=Loss%20Attributable%20to%20Owners%20of%20the%20Company%20and%20Net%20Loss%20Margin_FinancialReview) Loss attributable to owners of the company significantly increased by 2.3 times, with the net loss margin rising from 0.5% to 2.0%, primarily due to an expanded net loss driven by higher income tax expense | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Loss Attributable to Owners | 10,100 | 3,000 | +236.7% | | Net Loss Margin | 2.0% | 0.5% | +1.5 percentage points | | Primary Reason | Increased income tax expense | | | [Loss Per Share](index=16&type=section&id=Loss%20Per%20Share_FinancialReview) The company's basic loss per share increased by 2.3 times, primarily due to the expanded net loss in the first half of the year | Metric | H1 2025 (RMB cents) | H1 2024 (RMB cents) | Change (%) | | :--- | :--- | :--- | :--- | | Basic Loss Per Share | 0.81 | 0.24 | +237.5% | | Primary Reason | Expanded net loss | | | [Liquidity and Financial Resources](index=16&type=section&id=Liquidity%20and%20Financial%20Resources_FinancialReview) The Group primarily met its funding needs through internal operating cash flow and bank credit facilities, generating net cash inflow from operating activities during the period, while cash and bank balances slightly decreased | Metric | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Cash and Bank Balances | 195,100 | 209,100 | (14,000) | | Short-term Time Deposits | – | 4,600 | (4,600) | | Pledged Bank Deposits | 52,200 | 57,200 | (5,000) | | Net Cash Inflow from Operating Activities | (Specific amount not disclosed, but "generated net cash inflow" mentioned) | | | [Capital Structure and Pledged Assets](index=16&type=section&id=Capital%20Structure%20and%20Pledged%20Assets_FinancialReview) The Group's total interest-bearing borrowings decreased, with most maturing within one year, and bank credit facilities are secured by right-of-use assets, property, plant, equipment, and pledged bank deposits | Metric | As of June 30, 2025 (RMB thousands) | As of Dec 31, 2024 (RMB thousands) | Change (RMB thousands) | | :--- | :--- | :--- | :--- | | Total Interest-bearing Borrowings | 372,600 | 412,700 | (40,100) | | Borrowings Due Within One Year or On Demand | 317,600 (85.2%) | 402,700 (97.6%) | (85,100) | | Total Carrying Value of Pledged Assets | 418,700 | 433,100 | (14,400) | [Gearing Ratio](index=17&type=section&id=Gearing%20Ratio_FinancialReview) The Group's gearing ratio decreased, with a reduction in net current liabilities and a slight decline in net assets | Metric | As of June 30, 2025 | As of Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Gearing Ratio | 31.7% | 34.6% | -2.9 percentage points | | Net Current Liabilities | approx. **RMB 113.5 million** | approx. **RMB 195.9 million** | decreased by approx. **RMB 82.4 million** | | Net Assets | approx. **RMB 666.7 million** | approx. **RMB 676.8 million** | decreased by approx. **RMB 10.1 million** | [Foreign Exchange Risk](index=17&type=section&id=Foreign%20Exchange%20Risk_FinancialReview) The Group primarily faces foreign exchange risk from HKD and USD, but did not use any financial instruments for hedging during the period - The Group primarily faces foreign exchange risk from HKD and USD, with the carrying values of foreign currency denominated monetary assets and liabilities being approximately **RMB 1.7 million** and **RMB 5.1 million** respectively as of June 30, 2025[44](index=44&type=chunk) - The Group did not use any financial instruments for hedging during the six months ended June 30, 2025[44](index=44&type=chunk) [Contingent Liabilities](index=17&type=section&id=Contingent%20Liabilities_FinancialReview) As of June 30, 2025, the Group had no contingent liabilities - As of June 30, 2025, the Group had no contingent liabilities[45](index=45&type=chunk) [Outlook](index=18&type=section&id=Outlook) The Group anticipates a challenging textile market ahead, continuously monitoring market conditions, adjusting inventory, capacity, product mix, and pricing strategies, and enhancing production efficiency through increased automation to navigate market changes and seize opportunities for industry improvement - The textile industry faces challenges from the Russia-Ukraine conflict, Israel-Palestine conflict, sluggish growth in developed economies, and US 'reciprocal tariffs', leading to continued suppression of global demand and consumption[48](index=48&type=chunk) - China's textile product export market remains weak, with no clear signs of recovery in the domestic sales market[48](index=48&type=chunk) - The Group will continue to closely monitor market conditions, adjust inventory levels and production capacity, and improve its product portfolio and pricing strategies[49](index=49&type=chunk) - The Group will continue to prioritize industrial production safety and enhance production efficiency through increased automation to consolidate its advantageous position[49](index=49&type=chunk) [Other Information](index=17&type=section&id=Other%20Information) This section covers other important information regarding the company's employees, remuneration, dividend distribution, securities transactions, corporate governance, audit committee functions, and interim report publication [Employees, Remuneration and Share Option Scheme](index=17&type=section&id=Employees%2C%20Remuneration%20and%20Share%20Option%20Scheme) As of June 30, 2025, the Group had 2,436 employees, with remuneration determined based on performance, experience, and market practice; the company has a share option scheme but no options have been granted since its adoption | Metric | As of June 30, 2025 | As of Dec 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Total Number of Employees | **2,436** employees | **2,410** employees | +**26** employees | - The company adopted a share option scheme on June 25, 2021, but no share options have been granted under the scheme since its adoption[46](index=46&type=chunk) [Significant Investments and Acquisitions and Disposals of Subsidiaries](index=18&type=section&id=Significant%20Investments%20and%20Acquisitions%20and%20Disposals%20of%20Subsidiaries) For the six months ended June 30, 2025, the Group had no significant investments or acquisitions or disposals of subsidiaries - For the six months ended June 30, 2025, the Group had no significant investments or acquisitions or disposals of subsidiaries[47](index=47&type=chunk) [Dividends and Closure of Register of Members](index=18&type=section&id=Dividends%20and%20Closure%20of%20Register%20of%20Members) The Board declared an interim dividend of HK 1.5 cents per share, with the share transfer registration suspended from September 16 to 17, 2025, and payment expected on or around October 15, 2025 - The Board declared an interim dividend of **HK 1.5 cents** per share for the six months ended June 30, 2025[50](index=50&type=chunk) - The company's register of members will be closed from September 16, 2025, to September 17, 2025, during which no share transfers will be registered[50](index=50&type=chunk) - The 2025 interim dividend is expected to be paid on or around October 15, 2025, to shareholders registered as of September 17, 2025[50](index=50&type=chunk) [Purchase, Sale or Redemption of the Company's Securities](index=19&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Securities) During the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed shares[51](index=51&type=chunk) [Corporate Governance Practices](index=19&type=section&id=Corporate%20Governance%20Practices) The company has complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, except for not establishing an internal audit function, considering its operational scale, complexity, and cost, believing existing management's close monitoring provides effective internal control - The company has complied with the current Corporate Governance Code set out in Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, except for not establishing an internal audit function[52](index=52&type=chunk) - The company believes its existing organizational structure and close monitoring by the management team provide effective internal control and risk management functions, and will review annually whether an internal audit function is necessary[52](index=52&type=chunk) [Model Code for Securities Transactions by Directors](index=19&type=section&id=Model%20Code%20for%20Securities%20Transactions%20by%20Directors) The company has adopted the Model Code set out in Appendix C3 of the Listing Rules and confirmed that all directors complied with it during the period - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and confirmed that all directors complied with the code during the period[53](index=53&type=chunk) [Audit Committee](index=19&type=section&id=Audit%20Committee) The company's Audit Committee has reviewed the accounting principles and policies adopted by the Group, as well as the unaudited condensed consolidated financial information for the current period, with management - The company's Audit Committee, together with management, has reviewed the accounting principles and policies adopted by the Group, and the unaudited condensed consolidated financial information for the six months ended June 30, 2025[54](index=54&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=19&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the HKEX website and the company's website, and the interim report will be dispatched to shareholders and published on the websites in due course - This interim results announcement will be published on the HKEX website www.hkexnews.hk and the company's website www.chinaweavingmaterials.com[55](index=55&type=chunk) - The company's interim report for the six months ended June 30, 2025, will be dispatched to the company's shareholders and published on the aforementioned websites in due course[55](index=55&type=chunk) [Acknowledgement](index=20&type=section&id=Acknowledgement) The Board extends its sincere gratitude to the Group's management and employees, customers, suppliers, shareholders, and various government departments - The Board, on behalf of the company, extends its sincere gratitude to the management, employees, customers, suppliers, shareholders, and various government departments[56](index=56&type=chunk)

Group 1 - The company, China Textile Holdings (03778.HK), announced that it will hold a board meeting on August 28, 2025, to consider and approve the publication of its interim results for the six months ending June 30, 2025 [1] - The board meeting will also consider the distribution of an interim dividend, if any [1]

中 國 織 材 控 股 有 限 公 司（「本 公 司」）董 事 會（「董 事 會」）宣 佈，本 公 司 將 於 二 零 二 五 年 八 月 二 十 八 日（星 期 四）舉 行 董 事 會 會 議，藉 以（其 中 包 括）(i) 考 慮 及 批 准 刊 發 本 公 司 及 其 附 屬 公 司 截 至 二 零 二 五 年 六 月 三 十 日 止 之 六 個 月 的 中 期 業 績 公 告，以 及 (ii) 考 慮 派 發 中 期 股 息（如 有）。 承 董 事 會 命 中 國 織 材 控 股 有 限 公 司 公 司 秘 書 張 志 輝 香港，二零二五年八月四日 於本公告日期，本公司董事會成員包括執行董事鄭永祥先生；非執行董事鄭洪先生；及獨立非執行董事黃德 盛先生、許貽良先生及周倩儀女士。 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 WEAVING MATERIALS HOLDINGS LIMITED 中 國 織 材 控 股 有 限 公 司 ...

呈交日期: 2025年8月1日 I. 法定/註冊股本變動 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: 中國織材控股有限公司 FF301 II. 已發行股份及/或庫存股份變動 | 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) | 03778 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 1,252,350,000 | | 0 | | 1,252,350,000 | | 增加 / 減少 (-) | | | 0 | | 0 | | | | 本月底結存 | | | 1,252,350,000 | | 0 | | 1,252,350,000 | 第 2 頁 共 10 頁 v 1.1.1 III.已 ...

Financial Performance - In 2024, China Weaving Materials Holdings Limited achieved a yarn sales volume increase of 5.4% to 101,534 tons, with revenue growth of 15.8% to RMB 1.282 billion, benefiting from improved market conditions and product structure optimization [8]. - The company's gross profit was RMB 42.2 million, with an operating profit of approximately RMB 5.1 million, but it reported a net loss of RMB 11.74 million due to significant pricing pressure in the industry [8]. - The group recorded a net loss of approximately RMB 11,741,000 for the year ending December 31, 2024 [117]. - The net loss for the year was RMB 11,741 thousand, reduced from a loss of RMB 26,523 thousand in the previous year, showing a positive trend [154]. - The company reported a total comprehensive loss of RMB 11,741 thousand for the year, down from RMB 26,523 thousand in the previous year, suggesting a recovery trend [157]. - The company achieved a net cash inflow from operating activities of RMB 80,467,000, a substantial recovery from a net cash outflow of RMB 80,106,000 in 2023 [158]. - The basic loss per share improved to RMB 0.94 in 2024 from RMB 2.12 in 2023, indicating better performance on a per-share basis [154]. - The company reported a pre-tax loss of RMB 13,817,000 for the year ended December 31, 2024, significantly improved from a loss of RMB 41,598,000 in 2023, representing a reduction of approximately 66.8% [158]. Production and Capacity - The modernization plan at Jiangxi Jinyuan Textile Co., Ltd. has progressed as scheduled, with a new workshop with a capacity of 50,000 spindles now fully operational, enhancing production efficiency [9]. - The company maintains a total production capacity of approximately 760,000 spindles, focusing on the development of polyester-cotton blended yarn products [9]. - The company plans to focus on polyester-cotton yarn products, particularly polyester combed cotton yarn, which has higher entry barriers and better profit margins compared to polyester yarn products [14]. - The company has suspended production in one of its workshops for renovation and evaluation, aiming to enhance efficiency with the latest production technology [14]. Market Outlook - The outlook for 2025 remains challenging, with ongoing geopolitical tensions and a weak export market, despite signs of recovery in the domestic retail market [9]. - The textile industry continues to face challenges, with domestic retail sales growth slowing to approximately 2.9% in 2024, significantly lower than the 12.9% growth in 2023 [15]. - The textile industry is expected to face challenges in 2024 due to ongoing geopolitical conflicts and high inflation, impacting global demand and consumer confidence [33]. Financial Position - Cash and bank balances were approximately RMB 209.1 million as of December 31, 2024, compared to RMB 190.1 million as of December 31, 2023 [26]. - Interest-bearing borrowings were approximately RMB 412.7 million as of December 31, 2024, down from RMB 476.2 million as of December 31, 2023 [27]. - The debt-to-asset ratio was approximately 34.6% as of December 31, 2024, compared to 36.7% as of December 31, 2023 [28]. - Current liabilities exceeded current assets by approximately RMB 195,924,000, indicating significant uncertainty regarding the group's ability to continue as a going concern [117]. - The company's net asset value decreased to RMB 676,792 thousand in 2024 from RMB 688,533 thousand in 2023, reflecting a decline in equity [156]. Governance and Compliance - The company has established a remuneration committee, nomination committee, and audit committee to ensure effective governance and oversight [100]. - The board consists of one executive director, one non-executive director, and three independent non-executive directors, ensuring compliance with listing rules regarding board composition [96]. - The independent non-executive directors exceed one-third of the board members, meeting the requirements of the listing rules [97]. - The company has adopted a code of conduct for securities trading by directors, confirming compliance for the year ending December 31, 2024 [94]. - The audit report for the financial statements for the year ending December 31, 2024, was conducted by a specific accounting firm, which will be proposed for reappointment at the upcoming annual general meeting [90]. Risk Management - The board is committed to maintaining an appropriate risk management and internal control system to minimize risks and ensure compliance with relevant laws and regulations [121]. - The company faced foreign exchange risks primarily related to USD and HKD, with foreign currency assets and liabilities valued at approximately RMB 5.9 million and RMB 5.7 million, respectively, as of December 31, 2024 [29]. Shareholder Information - The company does not recommend the distribution of a final dividend for the year ended December 31, 2024 [48]. - The company's distributable reserves as of December 31, 2024, are approximately RMB 720 million [55]. - The company has maintained a minimum of 25% of its issued share capital held by the public since its listing [86]. Audit and Financial Reporting - The independent auditor's report confirmed that the consolidated financial statements present a true and fair view of the group's financial position as of December 31, 2024 [138]. - The group has been audited in accordance with the Hong Kong auditing standards, ensuring compliance with professional ethical responsibilities [139]. - The audit procedures included understanding management's control processes regarding impairment assessments and evaluating the qualifications and independence of external valuers [142]. Employee Relations - The group has established multiple employee benefit plans, including basic retirement pensions and medical insurance, in compliance with regulations in China and Hong Kong [81]. - The group has maintained harmonious relationships with employees and suppliers [44][46].

Financial Performance - The company's revenue for the fiscal year ending December 31, 2024, was RMB 1,282,266,000, representing a 15.8% increase from RMB 1,107,045,000 in the previous year[2] - Gross profit increased significantly to RMB 42,205,000 from RMB 11,263,000, indicating a substantial improvement in profitability[2] - The operating profit turned positive at RMB 5,095,000 compared to an operating loss of RMB 20,202,000 in the previous year[2] - The net loss for the year was RMB 11,741,000, a reduction from a loss of RMB 26,523,000 in the prior year, showing progress in financial performance[2] - The company reported a net loss attributable to shareholders of RMB 11,741,000 for the year ended December 31, 2024, compared to a loss of RMB 26,523,000 in 2023, representing a 55.7% improvement in losses year-over-year[27] - The company did not recommend the distribution of a final dividend for the fiscal year ending December 31, 2024[25] - Basic loss per share improved from approximately 2.12 cents to about 0.94 cents[49] Assets and Liabilities - Current liabilities exceeded current assets by RMB 195,924,000, raising concerns about the company's liquidity and going concern status[5] - Non-current assets decreased to RMB 909,274,000 from RMB 987,263,000, primarily due to a reduction in property, plant, and equipment[3] - Total liabilities decreased from RMB 712,045,000 to RMB 684,620,000, reflecting a slight improvement in the company's financial position[3] - The company's total liabilities exceeded its current assets by approximately RMB 195,924,000 as of December 31, 2024, indicating significant liquidity concerns[34] - As of December 31, 2024, the company's interest-bearing borrowings amounted to approximately RMB 412.7 million, a decrease from RMB 476.2 million as of December 31, 2023[51] - The company's debt-to-asset ratio was approximately 34.6% as of December 31, 2024, down from 36.7% a year earlier[52] Revenue and Sales - The company's revenue from yarn sales for the fiscal year 2024 was RMB 1,282,266,000, an increase of 15.8% compared to RMB 1,107,045,000 in 2023[19] - The sales volume of yarn products increased by approximately 5.4% from about 96,330 tons in the previous year to about 101,534 tons in the current year[40] - Yarn product sales revenue rose by 15.8% to approximately RMB 1.282 billion in 2024 from about RMB 1.107 billion in 2023[37] - The average selling price of yarn products rose by 9.9% from approximately RMB 11,492 per ton to about RMB 12,629 per ton[40] Other Income and Expenses - Total other income for the fiscal year 2024 was RMB 38,029,000, a decrease of 11.1% from RMB 42,742,000 in 2023[20] - The cost of goods sold for the fiscal year 2024 was RMB 1,240,061,000, up from RMB 1,095,782,000 in 2023[24] - Interest expenses for bank and other borrowings were RMB 18,912,000 in 2024, down from RMB 21,383,000 in 2023[20] - The company experienced a net foreign exchange loss of RMB 672,000 in fiscal year 2024, compared to a loss of RMB 181,000 in 2023[20] - Other income decreased by approximately RMB 4.7 million or 11.0%, from about RMB 42.7 million to approximately RMB 38 million[42] Market and Strategic Outlook - The company is closely monitoring government policies and market conditions to adjust its product mix and sales strategies accordingly[7] - The company plans to focus on polyester-cotton yarn products in 2024, particularly polyester combed cotton yarn, which has higher entry barriers and better profit margins[41] - The company has adjusted its product mix by gradually reducing the production and sales of viscose and stretch core viscose yarn products, with a complete cessation planned for 2024[40] - The global economic environment remains challenging, with China's GDP growth projected at 5.0% for 2024, slightly down from 5.2% in 2023, due to domestic demand slowdown and global trade uncertainties[34] - The textile industry faces challenges due to ongoing geopolitical conflicts and high inflation, impacting global demand and consumption[57] - The company plans to closely monitor market conditions and adjust inventory levels, production capacity, product mix, and pricing strategies accordingly[58] Compliance and Reporting - The adoption of new and revised international financial reporting standards did not have a significant impact on the company's consolidated financial statements[10] - The company is currently assessing the impact of new and revised International Financial Reporting Standards on its consolidated financial statements[12] - The group confirmed that the financial statements for the year ending December 31, 2024, are consistent with the draft consolidated financial statements[66] - The annual performance announcement will be published on the Hong Kong Stock Exchange website and the company's website[67] - The annual report will include all information required by listing rules and will be sent to shareholders at the appropriate time[67] Employment and Workforce - The total number of employees was 2,410 as of December 31, 2024, a slight decrease from 2,422 employees a year prior[55] Miscellaneous - The company had no contingent liabilities as of December 31, 2024[54] - The company has not made any significant investments or acquisitions during the year ended December 31, 2024[56] - The company has not used any financial instruments to hedge foreign exchange risks as of December 31, 2024[53] - The company will hold its annual general meeting on June 5, 2025[59]

中 國 織 材 控 股 有 限 公 司 (於 開 曼 群島 註 冊 成 立 的 有 限 公 司) 股份代號：3778 2024 中期報告 目 錄 | --- | --- | |-------|------------------------------| | | | | 2 | 公司資料 | | 4 | 管理層討論與分析 | | 10 | 企業管治及其他資料 | | 14 | 簡明綜合損益及其他全面收益表 | | 15 | 簡明綜合財務狀況表 | | 17 | 簡明綜合權益變動表 | | 18 | 簡明綜合現金流量表 | | 19 | 簡明綜合財務資料附註 | 公司資料 | --- | --- | |----------------------------------|-------------------------------------| | 董事會（「董事會」） | 公司秘書 | | 執行董事 | 張志輝先生 | | 鄭永祥先生 | 授權代表 | | 非執行董事 鄭洪先生 （主席） | 鄭洪先生 | | | 張志輝先生 | | 獨立非執行董事 黃德盛先生 | 註冊辦事處 | | 許貽良先生 李國興先生 ...

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 577,898,000, an increase of 26.8% compared to RMB 455,663,000 for the same period in 2023[1] - Gross profit for the same period was RMB 25,087,000, compared to RMB 8,980,000 in 2023, reflecting a significant improvement[1] - The net loss for the six months was RMB 3,048,000, a reduction from a net loss of RMB 9,617,000 in the previous year, indicating improved financial performance[1] - Other income for the six months ended June 30, 2024, was RMB 12,896 thousand, down from RMB 16,662 thousand in the same period of 2023, a decrease of about 22.0%[13] - The group incurred a net loss of RMB 3,048 thousand for the six months ended June 30, 2024, compared to a net loss of RMB 9,617 thousand for the same period in 2023, indicating an improvement in performance[20] - The company's gross profit for the six months ended June 30, 2024, was approximately RMB 25.1 million, with a loss attributable to the company of approximately RMB 3 million[26] - Gross profit increased from approximately RMB 9 million for the six months ended June 30, 2023, to approximately RMB 25.1 million for the same period in 2024, with the gross profit margin rising from 2.0% to 4.3%[28] - The net loss attributable to the company's owners decreased from approximately RMB 9.6 million to approximately RMB 3 million, a reduction of about RMB 6.6 million or 68.3%[35] - The company's basic loss per share decreased from approximately RMB 0.77 to approximately RMB 0.24, a reduction of about RMB 0.53 or 68.3%[36] Liquidity and Cash Flow - Current liabilities exceeded current assets by approximately RMB 153,058,000 as of June 30, 2024, raising concerns about the company's liquidity[4] - The company recorded an operating cash outflow of approximately RMB 28,009,000 during the six months, highlighting cash flow challenges[4] - The company has secured bank confirmations to renew short-term bank loans amounting to approximately RMB 40,000,000, which is crucial for its working capital needs[4] - As of June 30, 2024, the group had cash and bank balances, other receivables, and other payables, with foreign currency assets and liabilities valued at approximately RMB 2.4 million and RMB 5.3 million respectively[41] - The group had no contingent liabilities as of June 30, 2024[42] Assets and Liabilities - Non-current assets totaled RMB 948,263,000 as of June 30, 2024, a decrease from RMB 987,263,000 at the end of 2023[2] - Inventory increased to RMB 276,889,000 from RMB 224,222,000, indicating a potential buildup of stock[2] - The company’s total equity attributable to owners was RMB 685,485,000, slightly down from RMB 688,533,000 at the end of 2023[3] - Trade payables amounted to RMB 40,061 thousand as of June 30, 2024, compared to RMB 13,606 thousand as of December 31, 2023[24] - The group’s total trade and other receivables decreased to RMB 39,150 thousand as of June 30, 2024, from RMB 31,340 thousand as of December 31, 2023[21] Sales and Production - The group reported revenue from yarn sales of RMB 577,898 thousand for the six months ended June 30, 2024, compared to RMB 455,663 thousand for the same period in 2023, representing an increase of approximately 26.8%[11] - The company's yarn product sales volume increased by 26.2% from approximately 38,911 tons for the six months ended June 30, 2023, to approximately 49,113 tons for the six months ended June 30, 2024[26] - The company's yarn production increased by 14.7% from approximately 43,576 tons for the six months ended June 30, 2023, to approximately 50,000 tons for the six months ended June 30, 2024[26] - The group’s interest income decreased to RMB 1,642 thousand for the six months ended June 30, 2024, from RMB 3,448 thousand in the same period of 2023, a decline of approximately 52.4%[13] Expenses - Distribution and selling expenses decreased from approximately RMB 10.4 million to approximately RMB 9.4 million, a reduction of about RMB 1 million or 9.8%[31] - Administrative expenses decreased from approximately RMB 25.4 million to approximately RMB 21.1 million, a reduction of about RMB 4.3 million or 17.0%[32] - Financial costs decreased from approximately RMB 11 million to approximately RMB 10.2 million, a reduction of about RMB 800,000 or 7.2%[33] - The group’s depreciation expense for owned properties, plants, and equipment was RMB 38,114 thousand for the six months ended June 30, 2024, compared to RMB 36,439 thousand for the same period in 2023, an increase of about 4.6%[17] Market Conditions and Strategy - The global economic environment remains challenging, with inflation and rising interest rates impacting demand and consumption[25] - The textile industry faces challenges due to ongoing geopolitical conflicts and high inflation, which suppress global demand and consumption[45] - The company anticipates that the Chinese economy will remain resilient and continue to grow in the second half of 2024, despite a weak export market and uncertain domestic consumer confidence[45] - The company plans to continue assessing the impact of government policies and market conditions on its operations to ensure sufficient cash flow generation[5] - The company has ceased production and sales of viscose yarn and elastic core viscose yarn products as of 2024, focusing on polyester-cotton blended yarn products instead[26] - The company is actively adjusting its product mix and production arrangements in response to market conditions, while also enhancing marketing efforts and adopting aggressive pricing strategies[26] Corporate Governance - The group did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[18] - The board has decided not to declare an interim dividend for the six months ending June 30, 2024[46] - The company has complied with the corporate governance code and has not established an internal audit function, relying instead on existing management oversight[48] - There were no significant investments, acquisitions, or disposals of subsidiaries during the six months ending June 30, 2024[44] - There were no purchases, sales, or redemptions of the company's listed shares during the six months ending June 30, 2024[47] Employment - The total number of employees increased to 2,451 as of June 30, 2024, compared to 2,422 on December 31, 2023[43]

Market Conditions - In 2023, the global textile industry faced significant challenges, with the average prices of crude oil and cotton lower than in 2022, impacting product pricing negatively [8]. - The international cotton price averaged between $0.75 and $0.85 per pound in 2023, remaining lower than in 2022, primarily due to a weak global economy and high interest rates [12]. - The average price of crude oil in 2023 fluctuated between $70 and $80 per barrel, which was lower than in 2022, affecting downstream product prices [12]. - The textile industry faces challenges due to global demand suppression and high inflation, but domestic sales in China are gradually recovering [38]. Company Performance - The company's revenue for the year ending December 31, 2023, was adversely affected by a shift towards mass-market polyester yarn products, which have lower average selling prices and margins [9]. - The company's yarn product sales volume decreased by 6.9% from approximately 103,479 tons in the year ended December 31, 2022, to approximately 96,330 tons in the year ended December 31, 2023 [15]. - Revenue from yarn products fell by 16.0% from approximately RMB 1.318 billion in the year ended December 31, 2022, to approximately RMB 1.107 billion in the year ended December 31, 2023 [15]. - The overall average selling price of yarn products decreased by 17.1% from approximately RMB 12,738 per ton to approximately RMB 10,558 per ton [18]. - Gross profit dropped from approximately RMB 58.1 million in the year ended December 31, 2022, to approximately RMB 11.3 million in the year ended December 31, 2023, with a gross margin decline from 4.4% to 1.0% [19]. - The net loss attributable to the owners of the company was approximately RMB 26.5 million for the year ended December 31, 2023, compared to approximately RMB 12.6 million for the year ended December 31, 2022, resulting in a net loss margin of approximately 2.4% [27]. - Basic loss per share increased to approximately RMB 2.12 for the year ended December 31, 2023, from approximately RMB 0.39 for the year ended December 31, 2022 [29]. - The company recorded a total comprehensive loss of RMB 26,523 thousand for the year, compared to RMB 12,564 thousand in 2022 [179]. Financial Position - Cash and bank balances were approximately RMB 190.1 million as of December 31, 2023, down from RMB 263.4 million as of December 31, 2022 [30]. - Interest-bearing borrowings decreased to approximately RMB 476.2 million as of December 31, 2023, from RMB 515.2 million as of December 31, 2022 [31]. - The debt-to-asset ratio was approximately 36.7% as of December 31, 2023, compared to 38.5% as of December 31, 2022 [32]. - Current liabilities exceeded current assets by approximately RMB 199,261,000 as of December 31, 2023, indicating significant uncertainty regarding the company's ability to continue as a going concern [132]. - Total assets decreased to RMB 1,500,047 thousand from RMB 1,595,307 thousand in 2022, reflecting a decline of approximately 6% [181]. - The company has the financial resources to meet its funding needs and financial obligations for the next 12 months, despite the current challenges [195]. Strategic Adjustments - The company has adjusted its product mix and production arrangements to focus on mass-market products due to weak export markets, leading to increased marketing efforts and an aggressive pricing strategy [9]. - The company anticipates that the U.S. interest rates have peaked in 2023, with potential rate cuts in 2024 expected to improve consumer markets [9]. - The company plans to closely monitor market changes and adjust inventory levels and production capacity to improve product mix and pricing strategies [10]. - The company adjusted its product mix to focus more on mass-market products, particularly polyester yarn, in response to the competitive domestic market [19]. - The company plans to continue evaluating government policies and global financial market changes to adjust its product mix and sales strategies accordingly [196]. Operational Efficiency - The company aims to enhance production efficiency through increased automation and economies of scale, positioning itself to capitalize on future market improvements [10]. - The textile market is expected to remain challenging, but the company is committed to maintaining production safety and improving operational efficiency [10]. - Distribution and selling expenses decreased by approximately RMB 1.4 million or 5.7%, from approximately RMB 24.4 million to approximately RMB 23.0 million, attributed to the decline in yarn product sales volume [23]. - Administrative expenses decreased from RMB 54.5 million for the year ended December 31, 2022, to approximately RMB 50.8 million for the year ended December 31, 2023, a reduction of about RMB 3.7 million or 6.7% [24]. - Financial costs decreased from approximately RMB 22.7 million for the year ended December 31, 2022, to approximately RMB 21.3 million for the year ended December 31, 2023, a reduction of about RMB 1.4 million or 6.2% [25]. Governance and Compliance - The company has established a remuneration committee, nomination committee, and audit committee, ensuring they have sufficient resources to fulfill their duties [114]. - The board consists of one executive director, one non-executive director, and three independent non-executive directors, ensuring compliance with listing rules [108]. - The independent non-executive directors exceed one-third of the board, meeting the requirements of the listing rules [110]. - The company has adopted a code of conduct for securities trading by directors, confirming compliance for the year ended December 31, 2023 [106]. - The group has complied with all relevant environmental laws and regulations, obtaining necessary approvals from regulatory authorities in China [49]. Shareholder Information - The board does not recommend the distribution of a final dividend for the year ended December 31, 2023 [55]. - The group had over 1,800 customers as of December 31, 2023, with sales to the five largest customers accounting for 17.6% of total sales, and sales to the largest customer representing 6.9% of total sales for the year [53]. - The group had over 50 raw material suppliers, with purchases from the five largest suppliers making up 55.3% of total procurement, and purchases from the largest supplier accounting for 15.3% of total procurement for the year [53]. - The company reported a distributable reserve of approximately RMB 750 million as of December 31, 2023 [63]. Audit and Financial Reporting - The independent auditor's report was issued on March 26, 2024, confirming the overall fairness of the consolidated financial statements [176]. - The audit committee is responsible for overseeing the financial reporting process and ensuring the integrity of the financial statements [170]. - The audit report emphasizes the importance of internal controls and the need for adequate disclosures regarding the company's ability to continue as a going concern [173]. - The auditor's fees for the year ending December 31, 2023, amounted to approximately RMB 1,184,000 for audit services and RMB 263,000 for non-audit services [135].