Customer and Supplier Relationships - The company maintains long-term relationships with major customers to enhance competitiveness during market slowdowns[1] - The company has established stable long-term relationships with major hot-rolled steel coil suppliers, with most relationships lasting between 8 to 18 years[18] - The company has a procurement team actively seeking high-quality alternative suppliers to mitigate raw material supply risks[4] Financial Performance - The company's total revenue for 2022 was approximately RMB 1,492,155,000, a decrease of about 26.7% compared to RMB 2,035,409,000 in 2021[63] - The gross profit for 2022 was RMB 35,663,000, down approximately 84.8% from RMB 234,201,000 in 2021, resulting in a gross margin of 2.4% compared to 11.5% in the previous year[63][78] - The company recorded a loss of RMB 31,253,000 for the year, compared to a profit of RMB 98,097,000 in 2021, resulting in a loss per share of RMB 0.05[63] - The total sales volume for the year was 238,011 tons, a decline of 19% or 55,924 tons from the previous year[78] - The average selling price of cold-rolled steel products decreased from RMB 5,673 per ton in 2021 to RMB 5,061 per ton in 2022, while the average prices for non-color coated and color coated galvanized products also saw declines[78] Operational Developments - The company plans to allocate approximately 96.1% of the IPO proceeds for building construction and production facilities to expand capacity and improve efficiency[30] - The company has completed the infrastructure and equipment installation for its capacity expansion projects, with trial production starting in the first half of 2022[47] - The company has implemented smart equipment in its new factory, including fully automated cutting machines and intelligent warehouses[47] - The company aims to enhance production efficiency and reduce costs by shifting the production capacity of color-coated galvanized products to new production lines[81] Market and Economic Outlook - The company expects a gradual recovery in the real estate industry in 2023, which may boost demand for home appliances[57] - The company anticipates that the overall economic environment in 2023 will remain challenging but expresses confidence in future growth following the lifting of pandemic restrictions[56] - The company expects improvements in the external economic environment in 2023, with a gradual recovery in the real estate market and macroeconomic indicators showing signs of rebound[80] Compliance and Governance - The company is committed to complying with increasingly stringent environmental laws and regulations in China, which may lead to higher costs[4] - The company has maintained compliance with relevant laws and regulations affecting its operations[39] - The independent auditor provided an unqualified opinion regarding the company's ongoing related party transactions, confirming compliance with listing rules[181] - The board believes that good corporate governance is crucial for the company's success and enhancing shareholder value[184] Shareholder Information - As of December 31, 2022, the company had a remaining balance of RMB 142,753,000 available for distribution to shareholders[22] - The board does not recommend any dividend payment for the year ending December 31, 2022[10] - The company’s major shareholders include Mr. Mei Zefeng, holding 343,220,000 shares (56.61%), and Ms. Liu Ping, holding 85,500,000 shares (14.10%) as of the reporting date[177] - The company has a significant shareholder, Newrich Limited, holding 343,220,000 shares, representing a substantial interest in the company[196] Risk Management - The group faced various financial risks, including foreign exchange risk, interest rate risk, and credit risk[125] - The board of directors reported that the company faced various risks affecting its business operations, particularly in the demand for cold-rolled steel products driven by end-user demand for appliances[173]

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，並明確表示概不就因本公告全 部或任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 KANGLI INTERNATIONAL HOLDINGS LIMITED 康 利 國 際 控 股 有 限 公 司 （於開曼群島註冊成立的有限公司） 06890 （股份代號： ） 2022 12 31 截至 年 月 日止年度之業績公佈 康利國際控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然公佈本公 2022 12 31 司及其附屬公司（統稱「本集團」）截至 年 月 日止年度之經審核綜合業 績，連同上個財政年度之比較數字如下： 財務表現摘要 2022 2021 年 年 人民幣千元 人民幣千元 主要財務資料 1,492,155 2,035,409 －收益 35,663 234,201 －毛利 (31,253) 98,097 －年內（虧損）／溢利 ...

Financial Performance - Total revenue for the six months ended June 30, 2022, was RMB 764.715 million, a decrease of 23% compared to RMB 992.642 million for the same period in 2021[7] - Gross profit for the same period was RMB 34.401 million, down 72.4% from RMB 124.581 million year-on-year[7] - Operating profit decreased significantly to RMB 3.615 million, compared to RMB 85.240 million in the previous year, reflecting a decline of 95.8%[7] - The company reported a loss attributable to equity shareholders of RMB 5.144 million, contrasting with a profit of RMB 64.394 million in the prior year[7] - Basic and diluted loss per share was RMB (0.01), compared to earnings of RMB 0.11 per share in the same period last year[7] - The company’s total comprehensive income for the six months ended June 30, 2022, was RMB (5,436,000), compared to RMB 64,327,000 in the same period of 2021[16] - For the six months ended June 30, 2022, the company reported a basic loss attributable to equity shareholders of RMB 5,144,000, compared to a profit of RMB 64,394,000 for the same period in 2021[51] - The company recorded a loss of approximately RMB 5,144,000, compared to a profit of approximately RMB 64,394,000 for the same period in 2021, representing a significant decline in performance[109] Assets and Liabilities - Total assets as of June 30, 2022, were RMB 1,526.991 million, a slight decrease from RMB 1,558.066 million at the end of 2021[13] - Current liabilities amounted to RMB 1,121.761 million, compared to RMB 1,111.005 million at the end of 2021, indicating a slight increase[13] - The net asset value decreased to RMB 731.004 million from RMB 761.224 million at the end of 2021, reflecting a decline of 4%[13] - The company’s total equity as of June 30, 2022, was RMB 731,004,000, down from RMB 761,224,000 at the end of 2021[16] - The company’s total liabilities decreased from RMB 1,000,000,000 at the end of 2021 to RMB 900,000,000 as of June 30, 2022[16] - Trade receivables, net of impairment losses, were RMB 166,077,000 as of June 30, 2022, compared to RMB 171,843,000 as of December 31, 2021, reflecting a decrease of 3.9%[59] - Cash and cash equivalents as of June 30, 2022, totaled RMB 182,441,000, an increase from RMB 135,118,000 as of December 31, 2021, representing a growth of 35%[69] - Trade payables amounted to RMB 504,385,000 as of June 30, 2022, slightly up from RMB 501,267,000 as of December 31, 2021, indicating a 0.4% increase[73] Revenue Breakdown - Revenue from cold-rolled hard coils decreased to RMB 38,768 thousand in the six months ended June 30, 2022, down 18.3% from RMB 47,385 thousand in the same period of 2021[27] - Revenue from non-color coated hot-dip galvanized steel products was RMB 435,789 thousand, a decline of 30.0% compared to RMB 620,735 thousand in the previous year[27] - Revenue from color-coated hot-dip galvanized steel products decreased to RMB 290,158 thousand, down 10.6% from RMB 324,522 thousand in the prior year[27] - Revenue from external customers in China was RMB 672,667 thousand, down 27.5% from RMB 927,744 thousand in the same period of 2021[40] Operational Metrics - Total sales volume for cold-rolled and galvanized steel products was 112,484 tons, down 35,327 tons or 23.9% from 147,811 tons in the same period of 2021[96] - The gross profit for the six months ended June 30, 2022, was approximately RMB 34,401,000, with a gross margin of 4.5%, down from 12.6% in the same period of 2021[101] - The sales volume of non-color coated galvanized steel products decreased by 28,223 tons, while the sales volume of color coated galvanized steel products decreased by 5,463 tons compared to the same period in 2021[96] Cash Flow and Investments - Operating cash inflow for the six months ended June 30, 2022, was RMB 107,140,000, an increase of 57% from RMB 68,181,000 in the same period of 2021[19] - The company’s operating cash flow net amount for the six months ended June 30, 2022, was RMB 79,631,000, an increase of 39% from RMB 57,373,000 in the same period of 2021[19] - The company acquired property and machinery at a cost of RMB 32,183,000 for the six months ended June 30, 2022, an increase from RMB 19,798,000 in the same period of 2021[54] Employee and Operational Costs - Employee costs increased to RMB 27,177 thousand, up 9.0% from RMB 24,745 thousand in the previous year[44] - Depreciation and amortization expenses rose to RMB 24,641 thousand, compared to RMB 20,483 thousand in the same period of 2021, marking a 20.9% increase[45] - Selling and distribution expenses decreased from approximately RMB 29,858,000 in the previous year to about RMB 25,924,000 due to reduced transportation costs from lower sales volume[103] - Financial costs remained relatively stable at approximately RMB 11,510,000, compared to RMB 11,480,000 in the same period of 2021[105] Market and Strategic Outlook - The company continues to focus on the manufacturing and sales of cold-rolled hard coils and galvanized steel products, with ongoing investments in technology and market expansion[26] - The company plans to fully utilize new production lines in the second half of 2022, which are expected to improve production efficiency and reduce costs[94] - The company aims to adjust its sales strategy to secure more orders and enhance production capacity in response to the overall economic downturn[94] - The company continues to monitor the impact of COVID-19 and geopolitical tensions on its operations, indicating ongoing uncertainty in the business environment[89] - The company has implemented emergency measures to reassess pricing and supplier stability in response to market fluctuations, aiming to strengthen cash management[89] - The company noted potential impacts on sales volume and procurement costs for its products due to ongoing geopolitical tensions and pandemic-related measures[90] Shareholder Information - Major shareholders include Mr. Mei Zefeng with a 56.61% stake and Ms. Liu Ping with a 14.10% stake in the company as of June 30, 2022[143] - Jiangsu Changzhou Economic Development Management Committee holds a 9.73% stake, along with Changzhou Oriental New City Construction Co., Ltd. and Changzhou Oriental Water Investment Development Co., Ltd., each also holding 9.73%[143] - The company’s directors and senior management held a total of 343,220,000 shares, representing approximately 56.61% of the company’s equity[138] Governance and Compliance - The company maintained compliance with the corporate governance code as of June 30, 2022, ensuring shareholder and stakeholder interests are upheld[133] - The company's governance practices align with the standards set forth in the listing rules, ensuring transparency and accountability[137] - There were no significant acquisitions or disposals of subsidiaries and associates during the six months ended June 30, 2022[121] - No shares were repurchased or sold by the company or its subsidiaries during the six months ending June 30, 2022[134]

Financial Performance - The total revenue for the year ended December 31, 2021, was approximately RMB 2,035,409,000, an increase of about 26.7% compared to RMB 1,606,146,000 in 2020[6]. - The gross profit for 2021 rose to approximately RMB 234,201,000, an increase of RMB 57,731,000 or 32.7% from RMB 176,470,000 in 2020, with a gross margin improvement from 11.0% to 11.5%[6]. - Net profit for the year increased to approximately RMB 98,097,000, resulting in a net profit margin of 4.8%, compared to 4.5% in 2020[32]. - The average selling price of products increased by approximately 25.2%, contributing significantly to the revenue growth[20]. - The company's return on equity for 2021 was approximately 12.9%, compared to 10.6% in 2020[32]. Sales and Production - Total sales volume of cold-rolled and galvanized steel products was 293.9 thousand tons, a slight increase of 1.2% from approximately 290.4 thousand tons in the previous year[20]. - The sales volume of galvanized products was 276.2 thousand tons, an increase of approximately 1.6% from the previous year[20]. - The company anticipates that high steel prices will lead to higher sales prices, benefiting revenue growth in the future[10]. - The new production line is expected to enhance the company's profitability as color-coated galvanized steel products have the highest gross margin among its offerings[10]. Capacity Expansion and Projects - The company’s capacity expansion project commenced in April 2021 and is expected to enter trial production by April 2022, adding an annual capacity of 100,000 tons for color-coated galvanized steel products[7][10]. - The company signed a 5G+ industrial internet digital management project agreement with China Unicom in December 2021, aiming to enhance management efficiency through real-time data monitoring[7]. Environmental and Compliance - The company has made significant investments in environmental protection facilities to ensure compliance with current emission standards[7]. - The group is committed to complying with stringent environmental laws and regulations in China, which may increase operational costs[76]. - The company has complied with relevant laws and regulations that significantly impact its operations[80]. Corporate Governance - The company is dedicated to maintaining high standards of corporate governance practices[77]. - The board of directors includes executive directors and independent non-executive directors, with terms renewed for three years starting from November 25, 2021[107]. - The independent non-executive directors confirmed their independence in writing, and the company believes all independent non-executive directors are independent[188]. - The company has established three committees under the board: the remuneration committee, nomination committee, and audit committee, each with defined roles and responsibilities[199]. Shareholder Returns and Dividends - The company proposed a final dividend of HKD 0.050 per ordinary share for the year ended December 31, 2021, subject to shareholder approval[93]. - The company has a remaining share premium of RMB 168,582,000 available for distribution to shareholders as of December 31, 2021[98]. Risks and Challenges - The group faced various risks, including demand uncertainty for its products, which are influenced by the global economic environment and policies promoting the home appliance industry[71]. - The group faced foreign exchange risk, with approximately 90.8% of revenue settled in RMB and 9.2% in foreign currencies for the year 2021[41]. Employee and Management - The group employed 509 employees as of December 31, 2021, with compensation reviewed annually based on performance and experience[47]. - The company emphasizes employee welfare, providing competitive compensation and training for high-performing employees[84]. - The company encourages directors to participate in continuous professional development courses and seminars to enhance their knowledge and skills[196]. IPO and Financial Utilization - The company raised approximately RMB 107,086,000 from its initial public offering (IPO) after deducting professional fees and other related expenses[85]. - 96.1% of the IPO proceeds will be used for building construction, production facilities, and installing hot-dip galvanizing lines to expand capacity and improve production efficiency[88]. - As of December 31, 2021, the company had utilized RMB 58,510,000 of the IPO proceeds, leaving a remaining balance of RMB 38,173,000[90].

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 992,642 thousand, representing an increase of 58.8% compared to RMB 625,226 thousand for the same period in 2020[8]. - Gross profit for the same period was RMB 124,581 thousand, up 160.5% from RMB 47,801 thousand in 2020[8]. - Operating profit increased to RMB 85,240 thousand, compared to RMB 20,184 thousand in the previous year, marking a growth of 322.5%[8]. - Profit attributable to equity shareholders for the period was RMB 64,394 thousand, a significant rise from RMB 10,563 thousand in 2020, reflecting a growth of 510.5%[8]. - Basic and diluted earnings per share were RMB 0.11, compared to RMB 0.02 for the same period last year, indicating a 450% increase[8]. - For the six months ended June 30, 2021, the company reported a net profit of RMB 64,394 thousand, an increase from RMB 10,563 thousand in the same period of 2020, representing a growth of approximately 509%[16]. - The company reported a total comprehensive income of RMB 64,327 thousand for the six months ended June 30, 2021, compared to RMB 10,679 thousand for the same period in 2020, indicating a growth of approximately 502%[16]. - Net profit for the six months ended June 30, 2021, was approximately RMB 64,394,000, resulting in a net profit margin of 6.5%, compared to 1.7% in the previous year[114]. Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 1,623,526 thousand, slightly up from RMB 1,597,248 thousand at the end of 2020[14]. - The company’s total equity as of June 30, 2021, was RMB 727,221 thousand, up from RMB 621,046 thousand as of June 30, 2020, indicating a growth of approximately 17.1%[16]. - The company’s total liabilities decreased from RMB 1,000,000 thousand as of December 31, 2020, to RMB 1,000,000 thousand as of June 30, 2021, reflecting a stable financial position[16]. - Trade receivables increased to RMB 712,931 thousand from RMB 685,303 thousand, reflecting a growth of 4.1%[14]. - Cash and cash equivalents as of June 30, 2021, totaled RMB 175,844,000, compared to RMB 158,495,000 as of December 31, 2020[68]. - Trade payables amounted to RMB 545,515,000 as of June 30, 2021, a decrease from RMB 573,527,000 as of December 31, 2020[72]. Sales and Revenue Breakdown - Sales of non-color coated galvanized steel products reached RMB 620,735 thousand, up 61.5% from RMB 384,423 thousand in 2020[28]. - Sales of color coated galvanized steel products increased to RMB 324,522 thousand, representing a 57.6% rise from RMB 205,679 thousand in the previous year[28]. - Revenue from external customers in China was RMB 927,744 thousand, a 55.8% increase compared to RMB 595,095 thousand in 2020[42]. - The total sales volume of cold-rolled steel products and galvanized steel products reached 147,811 tons, an increase of 30,113 tons or 25.6% compared to 117,698 tons in the same period of 2020[92]. - The average selling price of products increased by 26.4% compared to the same period last year[100]. Expenses and Costs - Total financing costs increased to RMB 11,480 thousand, up from RMB 8,317 thousand in 2020[44]. - Employee costs rose to RMB 24,745 thousand, compared to RMB 19,943 thousand in the same period of 2020[46]. - Selling and distribution expenses increased from approximately RMB 21,984,000 in 2020 to RMB 29,858,000 in 2021 due to higher shipping costs associated with increased sales volume[108]. - The cost of goods sold for the six months ended June 30, 2021, was RMB 868,061,000, compared to RMB 577,425,000 for the same period in 2020[58]. Cash Flow and Investments - Operating cash inflow for the six months ended June 30, 2021, was RMB 68,181 thousand, compared to RMB 37,218 thousand for the same period in 2020, reflecting an increase of about 83.3%[19]. - The company incurred a total of RMB 19,798 thousand in capital expenditures for property, plant, and equipment during the six months ended June 30, 2021, compared to RMB 5,935 thousand in the same period of 2020[19]. - The company’s cash and bank deposits as of June 30, 2021, were approximately RMB 274,874,000, up from RMB 243,545,000 at the end of 2020[115]. Shareholder Information - The company paid dividends of RMB 19,256 thousand for the year, compared to RMB 4,344 thousand in the previous year, reflecting a significant increase in shareholder returns[16]. - The board did not recommend any interim dividend for the six months ended June 30, 2021[129]. - As of June 30, 2021, Mr. Mei Zefeng holds 343,220,000 shares, representing 56.61% of the company's equity[144]. - Ms. Liu Ping holds 85,500,000 shares, representing 14.10% of the company's equity[144]. Corporate Governance and Compliance - The group has maintained compliance with corporate governance standards as per the listing rules[140]. - The group has no significant financial risks related to foreign currency, interest rates, or credit as of June 30, 2021[122]. Future Plans and Developments - The company is currently constructing a new factory expected to be completed by October 2021, which will enhance its color-coated production capacity[doc id='94']. - The new production line will incorporate advanced emission treatment devices and smart equipment to improve production efficiency and reduce costs[doc id='94']. - The group plans to utilize RMB 29,500,000 from the IPO proceeds for purchasing a new intelligent coating production line due to high gross margins[134].

Financial Performance - The total revenue for the year 2020 was approximately RMB 1,606,146,000, representing an increase of about 7.4% compared to RMB 1,495,630,000 in 2019[7]. - Gross profit rose from approximately RMB 99,525,000 in 2019 to about RMB 176,470,000 in 2020, an increase of approximately RMB 76,945,000 or 77.3%, with the gross margin improving from about 6.7% to 11.0%[7]. - Net profit for the year increased to RMB 72,411,000, resulting in a net profit margin of 4.5%, compared to 1.7% in 2019[35]. - The return on equity for 2020 was approximately 10.6%, compared to 4.0% in 2019[35]. - Other income decreased to approximately RMB 769,000 in 2020 from RMB 5,069,000 in 2019, primarily due to foreign exchange losses[29]. - Selling and distribution expenses increased to approximately RMB 52,567,000 in 2020 from RMB 42,288,000 in 2019, driven by higher transportation costs[30]. Sales and Production - The total sales volume of cold-rolled steel and galvanized steel products increased from approximately 276,200 tons in 2019 to about 290,400 tons in 2020, an increase of approximately 14,200 tons[7]. - Total sales volume of cold-rolled and galvanized steel products reached approximately 290,430 tons, up 5.1% from 276,242 tons in the previous year[22]. - The sales volume of color-coated galvanized steel products increased by 30.1% to 85,430 tons, compared to 65,684 tons in 2019[22]. - The company implemented multiple technical improvements to enhance production efficiency and reduce energy consumption, contributing to record production and sales volumes[17]. Capacity Expansion - The company acquired approximately 60 acres (equivalent to about 44,763.1 square meters) of land for capacity expansion at a fair market price by the end of 2020[8]. - The company plans to accelerate its capacity expansion plan and aims to complete the installation and debugging of new production lines within 2021[12]. - The company plans to acquire two adjacent plots of land totaling approximately 44,763.1 square meters for RMB 18,490,000 to facilitate new production lines[92]. - As of December 31, 2020, the company had utilized RMB 9,403,000 of the IPO proceeds, with RMB 97,683,000 remaining for capacity expansion and efficiency improvements[94]. Market Outlook - The Chinese home appliance market is expected to recover in 2021, with a projected market size of RMB 892.9 billion[12]. - The retail sales growth rate for the electromechanical market in China is expected to reach 10.2% year-on-year in 2021[12]. - The company expresses confidence in future business development due to favorable policies and market conditions[12]. Financial Position - As of December 31, 2020, the group's bank deposits and cash amounted to approximately RMB 243,545,000, an increase of about 32.2% from RMB 184,216,000 in 2019[36]. - The net current assets as of December 31, 2020, were approximately RMB 429,193,000, representing an increase of about 18.6% from RMB 361,912,000 in 2019[38]. - The current ratio as of December 31, 2020, was approximately 1.4, slightly down from 1.5 in 2019, indicating a stable liquidity position[38]. - Total borrowings as of December 31, 2020, were approximately RMB 511,150,000, an increase from RMB 329,769,000 in 2019, with a debt-to-equity ratio of about 0.7 compared to 0.6 in 2019[39]. Risk Management - The group faced foreign exchange risk, with approximately 95.9% of revenue settled in RMB and 4.1% in foreign currencies, highlighting potential exposure to currency fluctuations[43]. - The group faced risks related to demand uncertainty for its products, which are influenced by the global economic environment, particularly the US-China trade war and policies promoting the home appliance industry[74]. - The group employs a "cost-plus" pricing model to mitigate risks from raw material price fluctuations, ensuring that customer quotes reflect production costs plus a margin[77]. - The group maintains long-term relationships with major suppliers to address risks of raw material supply shortages, ensuring a stable supply of hot-rolled steel coils[78]. Corporate Governance - The company has adopted the corporate governance code and believes it has complied with all applicable provisions during the reporting period[180]. - The roles of the Chairman and CEO are separated, currently held by Ms. Liu Ping and Mr. Zhang Zhihong respectively[193]. - The board maintains at least three independent non-executive directors, with at least one possessing appropriate professional qualifications in accounting or relevant financial management expertise[194]. - All independent non-executive directors have confirmed their independence in writing, and the company believes all are independent[194]. Shareholder Information - The company proposed a final dividend of HKD 0.038 per ordinary share for the year ended December 31, 2020, pending shareholder approval[96]. - The company has a remaining balance of RMB 187,838,000 available for distribution to shareholders as of December 31, 2020[103]. - The largest customer accounted for approximately 13.7% of the group's total revenue for the year ended December 31, 2020, while the top five customers accounted for 43.9%[161]. - The largest supplier accounted for approximately 69.3% of the group's total purchases for the year ended December 31, 2020, with the top five suppliers accounting for 82.2%[162].

Financial Performance - Revenue for the six months ended June 30, 2020, was RMB 625,226 thousand, a decrease of 9.5% compared to RMB 691,240 thousand for the same period in 2019[5] - Gross profit for the same period was RMB 47,801 thousand, representing a gross margin of 7.65%[5] - Operating profit decreased to RMB 20,184 thousand, down 10.7% from RMB 22,594 thousand in the previous year[5] - Profit attributable to equity shareholders for the period was RMB 10,563 thousand, a decline of 13.2% from RMB 12,165 thousand in 2019[5] - Basic and diluted earnings per share remained at RMB 0.02 for both periods[5] - Total revenue for the six months ended June 30, 2020, was RMB 625,226,000, a decrease from RMB 691,240,000 for the same period in 2019, representing a decline of approximately 9.5%[36] - Gross profit for the same period was RMB 47,801,000, compared to RMB 49,300,000 in 2019, indicating a decrease of about 3.0%[39] - Revenue from the Chinese market was RMB 595,095,000, down from RMB 650,899,000 in 2019, reflecting a decline of approximately 8.5%[41] - Net profit for the six months ended June 30, 2020, was approximately RMB 10,563,000, down from RMB 12,165,000 in 2019, resulting in a net profit margin of 1.7%[123] Assets and Liabilities - Total assets as of June 30, 2020, were RMB 1,160,491 thousand, an increase from RMB 1,104,144 thousand at the end of 2019[11] - Net asset value increased to RMB 621,046 thousand from RMB 614,711 thousand at the end of 2019[11] - Inventory as of June 30, 2020, was RMB 339,764 thousand, slightly up from RMB 335,512 thousand at the end of 2019[11] - Trade receivables decreased to RMB 475,535 thousand from RMB 489,461 thousand at the end of 2019[11] - Cash generated from operating activities for the six months ended June 30, 2020, was RMB 37,218,000, with a net cash inflow from operating activities of RMB 28,060,000, down from RMB 42,303,000 in the same period of 2019[20] - Cash and cash equivalents at the end of the period were RMB 161,083,000, an increase from RMB 141,974,000 at the end of the same period in 2019[20] - Trade payables and notes payable totaled RMB 352,521,000 as of June 30, 2020, compared to RMB 328,731,000 as of December 31, 2019, marking an increase of about 7%[72] - The company’s bank loans amounted to RMB 344,246,000 as of June 30, 2020, compared to RMB 329,769,000 as of December 31, 2019, representing an increase of approximately 4%[78] Operational Highlights - Revenue from the sale of cold-rolled hard coils was RMB 35,124,000, a decrease of 13.4% compared to RMB 40,308,000 in the same period of 2019[30] - Revenue from the sale of non-color coated galvanized steel products was RMB 384,423,000, down 14.6% from RMB 449,803,000 in the same period of 2019[30] - Revenue from the sale of color-coated galvanized steel products was RMB 205,679,000, an increase of 2.7% compared to RMB 201,129,000 in the same period of 2019[30] - Total sales volume of cold-rolled and galvanized steel products was 117,689 tons, down 10,822 tons or 8.4% from 128,520 tons in the same period last year[92] - The company experienced a significant decline in sales of non-color galvanized steel products, with a drop of 12,446 tons compared to the previous year[92] Cost and Expenses - The cost of goods sold for the six months ended June 30, 2020, was RMB 577,425,000, down from RMB 641,940,000 for the same period in 2019, representing a decrease of approximately 10%[59] - Employee costs decreased to RMB 19,943,000 in 2020 from RMB 21,947,000 in 2019, a reduction of approximately 9.1%[45] - Sales and distribution expenses rose to approximately RMB 21,984,000 from RMB 20,080,000 in the previous year, primarily due to increased freight costs[116] - Management expenses increased to approximately RMB 9,350,000 from RMB 8,424,000, attributed to higher consulting service fees[119] Financing and Investments - New bank and other loan proceeds amounted to RMB 232,246,000, compared to RMB 162,850,000 in the same period of 2019[20] - The company incurred financing costs of RMB 8,317,000 in 2020, down from RMB 11,290,000 in 2019, representing a decrease of about 26.3%[44] - The company acquired property and machinery for RMB 5,935,000 during the six months ended June 30, 2020, compared to RMB 5,221,000 in 2019, an increase of approximately 13.6%[55] - The company incurred capital commitments of RMB 3,947,000 as of June 30, 2020, compared to RMB 2,667,000 as of December 31, 2019[87] Shareholder Information - The company paid dividends of RMB 4,344,000 based on the previous year's approved dividend[17] - The board did not recommend any interim dividend for the six months ending June 30, 2020[139] - As of June 30, 2020, Mr. Mei Zefeng holds 343,220,000 shares, representing 56.61% of the company's equity[159] - Ms. Liu Ping holds 85,500,000 shares, representing 14.10% of the company's equity[159] - Jiangsu Changzhou Economic Development Management Committee holds 59,000,000 shares, representing 9.73% of the company's equity[159] Corporate Governance - The board confirmed compliance with the corporate governance code during the six months ending June 30, 2020[150] - No significant interests in competitive businesses were disclosed by the directors or their close associates as of June 30, 2020[171] - No significant interests in major transactions, arrangements, or contracts were reported by the directors or related entities during the six months ending June 30, 2020[172] Future Outlook - The company plans to enhance product quality and marketing strategies in the second half of the year to stabilize orders and maintain higher gross margins[95] - The company is actively pursuing expansion plans to achieve sustainable business development and deliver long-term value to shareholders[95] - The company faced delays in land acquisition for expansion due to changes in land use classification by the government, impacting development plans[148]

Financial Performance - The total revenue for the year 2019 was approximately RMB 1,495,630,000, a decrease of about 3.4% from RMB 1,548,276,000 in 2018[7] - Gross profit decreased by approximately RMB 31,235,000 or 23.9%, from RMB 130,760,000 in 2018 to RMB 99,525,000 in 2019, with a gross margin decline from 8.4% to 6.7%[8] - Net profit for the year decreased to approximately RMB 24,698,000 from RMB 50,921,000 in 2018, with a net profit margin dropping from 3.3% to 1.7%[36] - Other income increased to approximately RMB 5,069,000 in 2019 from RMB 4,094,000 in 2018, mainly due to higher interest income and foreign exchange gains[27] - Selling and distribution expenses rose to approximately RMB 42,288,000 in 2019 from RMB 39,871,000 in 2018, primarily due to increased transportation and business entertainment costs[28] Sales and Production - The total sales volume of cold-rolled and galvanized steel products increased by 956 tons to 276,242 tons in 2019, compared to 275,286 tons in 2018[7] - Sales volume of non-color coated galvanized steel products decreased by 11.2% to 189,715 tons, while sales volume of color coated galvanized steel products increased by 52.0% to 65,684 tons[22] - The company has achieved near full production capacity for its color-coated production line by the end of 2019[8] - The company increased its focus on developing color coated galvanized steel orders, leading to a significant rise in sales volume for this product line[17] Market and Demand - The company anticipates that the stable development of the real estate market will positively impact demand for home appliances[11] - New government policies since June 2019 are expected to stimulate demand in the home appliance sector, including initiatives for recycling and upgrading appliances[11] - The company faced demand uncertainty for its products, which is influenced by the global economic environment, particularly the US-China trade war and policies promoting the home appliance industry[74] COVID-19 Impact - The company is closely monitoring the impact of the COVID-19 pandemic on its operations and is implementing emergency measures to mitigate potential disruptions[12] - The company believes that any production and delivery delays due to the pandemic will be temporary and can be mitigated post-pandemic[12] Financial Position - Cash and bank deposits as of December 31, 2019, were approximately RMB 184,216,000, an increase from RMB 154,625,000 in 2018[37] - As of December 31, 2019, the group's net current assets amounted to approximately RMB 361,912,000, an increase of about 16.1% compared to RMB 311,804,000 as of December 31, 2018[38] - The current ratio as of December 31, 2019, was approximately 1.5, compared to 1.4 in 2018, indicating a stable and healthy level[38] - The group's total bank borrowings as of December 31, 2019, were approximately RMB 329,769,000, up from RMB 286,000,000 in 2018[39] - The debt-to-equity ratio as of December 31, 2019, was approximately 0.6, compared to 0.5 in 2018[39] Corporate Governance - The board of directors believes that good corporate governance is crucial for the company's success and enhancing shareholder value[165] - The company has established appropriate insurance for its directors and senior management against potential legal claims[112] - The remuneration committee is responsible for reviewing the remuneration policy for directors and senior management based on their responsibilities, experience, performance, and the company's results[147] - The independent auditor, KPMG, has been appointed for the fiscal year ended December 31, 2019, and a resolution for their reappointment will be presented at the annual general meeting[157] Employee and Management - The group employed 556 employees as of December 31, 2019, with salaries reviewed and adjusted annually based on performance and experience[48] - The company emphasizes the importance of employee welfare and safety, providing competitive compensation and training for career development[87] - Each executive director has a service agreement for three years, subject to renewal upon expiration[181] Risk Management - The company faces various financial risks, including foreign exchange risk, interest rate risk, and credit risk, primarily from trade and other receivables[43] - The company does not use any derivative instruments to hedge against interest rate risk[45] - The company’s main raw material, hot-rolled steel coils, is subject to price fluctuations influenced by policies and economic conditions[77] Shareholder Information - The company plans to pay a final dividend of HKD 0.008 per share for the year ended December 31, 2019, pending approval at the upcoming annual general meeting[94] - The company has a net balance of RMB 192,182,000 available for distribution to shareholders as of December 31, 2019[99] Strategic Initiatives - The company submitted 9 patent applications for new technologies in 2019, aiming to improve production efficiency and reduce costs[17] - Approximately 96.1% of the net proceeds from the IPO, amounting to about RMB 102,000,000, will be used for building construction, production facilities, and equipment installation to expand capacity and improve production efficiency[90] - The company has faced delays in its development plans due to changes in land classification by the government, impacting its expansion strategy[92]

Financial Performance - Revenue for the six months ended June 30, 2019, was RMB 691,240 thousand, a decrease of 9.5% compared to RMB 763,839 thousand for the same period in 2018[5] - Gross profit for the same period was RMB 49,300 thousand, down 28.5% from RMB 68,823 thousand in 2018[5] - Operating profit decreased to RMB 22,594 thousand, a decline of 41.0% from RMB 38,340 thousand in the previous year[5] - Profit attributable to equity shareholders for the period was RMB 12,165 thousand, down 16.0% from RMB 14,500 thousand in 2018[5] - Basic and diluted earnings per share were RMB 0.02, compared to RMB 0.03 for the same period last year[5] - The total comprehensive income for the six months ended June 30, 2019, was RMB 12,278,000, compared to RMB 14,588,000 for the same period in 2018, indicating a decrease of about 16.0%[14] - The company reported a net profit of RMB 12,165,000 for the six months ended June 30, 2019, compared to RMB 14,500,000 for the same period in 2018, reflecting a decrease of approximately 16.5%[14] - The profit before tax was RMB 11,304 thousand, showing a 50% increase year-over-year[46] - The net profit for the period was RMB 12,165 thousand, which is a 50% increase compared to the same period last year[46] Assets and Liabilities - Total assets as of June 30, 2019, were RMB 1,068,154 thousand, slightly down from RMB 1,088,654 thousand at the end of 2018[12] - Current liabilities decreased to RMB 734,017 thousand from RMB 776,850 thousand at the end of 2018[12] - Net asset value increased to RMB 601,938 thousand from RMB 599,263 thousand at the end of 2018[12] - The company’s total equity as of June 30, 2019, was RMB 601,938,000, compared to RMB 599,263,000 at the end of 2018, reflecting a slight increase of about 0.3%[14] - The total amount of restricted deposits increased to RMB 16,500 thousand as of June 30, 2019, from RMB 9,685 thousand as of December 31, 2018, representing an increase of approximately 70%[98] - The company’s financial liabilities measured at amortized cost rose to RMB 48,928 thousand as of June 30, 2019, compared to RMB 14,925 thousand as of December 31, 2018, reflecting an increase of about 227%[105] Cash Flow and Investments - Operating cash flow for the six months ended June 30, 2019, was RMB 42,303,000, significantly up from RMB 15,954,000 in the same period of 2018, representing an increase of approximately 165.5%[17] - The company incurred a net cash outflow from investing activities of RMB 2,889,000 for the six months ended June 30, 2019, compared to RMB 3,016,000 for the same period in 2018, showing a slight improvement[17] - The company raised RMB 162,850,000 from new bank and other loans during the six months ended June 30, 2019, compared to RMB 230,000,000 in the same period of 2018, a decrease of approximately 29.3%[17] - The cash outflow for financing activities was RMB (42,853) thousand, compared to RMB (28,407) thousand in the previous year[50] Inventory and Receivables - Inventory increased to RMB 372,764 thousand from RMB 341,151 thousand at the end of 2018, indicating a rise of 9.5%[12] - Trade receivables, net of impairment provisions, were RMB 149,213,000 as of June 30, 2019, down from RMB 154,533,000 as of December 31, 2018[88] - The group reported a decrease in the carrying amount of trade receivables and notes receivable to RMB 521,772,000 as of June 30, 2019, compared to RMB 573,172,000 as of December 31, 2018[88] Market Performance - Sales of non-color coated galvanized steel products decreased by 23.8% to RMB 449,803 thousand from RMB 590,538 thousand year-on-year[55] - Sales of color coated galvanized steel products increased by 48.9% to RMB 201,129 thousand from RMB 135,049 thousand year-on-year[55] - Revenue from the Chinese market accounted for RMB 650,899 thousand, a decrease of 7.4% from RMB 702,763 thousand in the same period of 2018[64] - Total sales volume of cold-rolled and galvanized steel products was 128,520 tons, a decrease of 6.1% from 136,884 tons in the same period of 2018[124] Corporate Governance and Shareholder Information - The company has adhered to the corporate governance code, with the exception of one independent non-executive director missing the annual general meeting due to scheduling conflicts[169] - Major shareholders include Mr. Mei Zefeng with 342,100,000 shares (56.43%) and Ms. Liu Ping with 85,500,000 shares (14.10%) each holding significant stakes[179] - The company is committed to maintaining high standards of corporate governance to enhance shareholder value[169] IFRS 16 Adoption - The company adopted IFRS 16 "Leases" effective January 1, 2019, which introduces a single accounting model for lessees, requiring recognition of right-of-use assets and lease liabilities for all leases, except for short-term leases and low-value assets[25] - The company has chosen to apply the modified retrospective approach, meaning prior periods have not been restated, and the cumulative effect of initially applying IFRS 16 was recognized as an adjustment to the opening balance of equity[26] - The transition to IFRS 16 did not have a significant impact on the company's financial statements, as the company did not adopt any new standards or interpretations that were not yet effective during the reporting period[28]

Financial Performance - Total revenue for the year ended December 31, 2018, was approximately RMB 1,548,276,000, an increase of about RMB 50,739,000 or 3.4% from RMB 1,497,537,000 in 2017[6] - Gross profit for 2018 was approximately RMB 130,760,000, a decrease of RMB 30,718,000 or 19.0% from RMB 161,478,000 in 2017, with a gross margin decline from 10.8% to 8.4%[7] - Net profit for 2018 was RMB 50,921,000, a decrease from RMB 66,143,000 in 2017, with a net profit margin dropping from 4.4% to 3.3%[35] - Other income rose significantly from RMB 998,000 in 2017 to RMB 4,094,000 in 2018, primarily due to government grants[27] - Financing costs increased to RMB 15,139,000 in 2018 from RMB 12,734,000 in 2017, attributed to higher average loan balances[30] - The company’s net asset value increased by 166.0% to RMB 311,804,000 as of December 31, 2018, compared to RMB 117,205,000 in 2017[37] - The group achieved a current ratio of 1.4 as of December 31, 2018, up from 1.1 in 2017, indicating improved liquidity[37] - Approximately 93.1% of the group's revenue in 2018 was settled in RMB, while 6.9% was in foreign currencies, exposing the company to foreign exchange risk[43] Sales and Market Performance - Total sales volume of cold-rolled and galvanized steel products decreased by approximately 11,654 tons or 4.1%, from 286,940 tons in 2017 to 275,286 tons in 2018[15] - The average selling price per ton increased by approximately RMB 405, contributing to the overall revenue increase despite the decline in sales volume[15] - Revenue from the Chinese market accounted for approximately 93.1% of total revenue, while revenue from the Korean market accounted for about 6.1%[6] - The company introduced 16 new colors for its color-coated galvanized products, enhancing its market capabilities[20] - The average selling price for hot-dip galvanized products increased by 7.7% to RMB 5,700 per ton in 2018, despite a 5.1% decrease in sales volume[22] Strategic Initiatives - The company plans to enhance market development efforts and accelerate capacity expansion plans to increase market share[11] - The Chinese government has introduced policies to stimulate demand for home appliances, which is expected to drive growth in the industry[10] - The company aims to improve product quality through equipment upgrades and increased investment in product technology research and development[11] - Approximately 96.1% of the net proceeds from the IPO, amounting to about RMB 102,000,000, will be used for building construction, production facilities, and equipment installation to expand capacity and improve production efficiency[91] Corporate Governance and Management - The company is committed to maintaining high standards of corporate governance, as detailed in the corporate governance report section of the annual report[80] - The management team includes experienced professionals with over 16 years in the steel processing industry and over 13 years in financial control and corporate management[50][52] - The board of directors consists of a balanced and diversified composition suitable for the company's business[169] - The company has established written guidelines for employees who may possess unpublished inside information[178] - The board is responsible for maintaining an effective risk management and internal control system to protect shareholder investments[199] Risk Management - The group has faced various financial risks, including foreign exchange, interest rate, and credit risks, primarily from trade and other receivables[42][45] - The company employs a "cost-plus" pricing model to mitigate risks associated with fluctuations in raw material prices, particularly hot-rolled steel coils[77] - The company has not reported any major subsequent events or significant contingent liabilities as of the reporting date[41][46] Employee and Stakeholder Relations - The company emphasizes employee welfare and safety, providing competitive compensation and training for career development[88] - The group employed 483 staff members as of December 31, 2018, with compensation reviewed annually based on performance and experience[48] Shareholder Information - The company plans to pay a final dividend of HKD 0.018 per share for the year ended December 31, 2018, subject to shareholder approval at the upcoming annual general meeting[93] - As of December 31, 2018, the company had a share premium balance available for distribution to shareholders amounting to RMB 201,749,000[100] - Major shareholders include Mr. Mei Zefeng with a 56.41% stake (342,000,000 shares) and Ms. Liu Ping with a 14.10% stake (85,500,000 shares) as of December 31, 2018[126] Audit and Compliance - The company has engaged KPMG as its auditor for the fiscal year ending December 31, 2018[158] - The audit committee is tasked with overseeing the financial reporting process and internal control systems[196] - The board conducts annual reviews of the risk management framework and significant risks[199]