Financial Performance - For the year ended December 31, 2023, the Group's revenue was RMB 85.4 million, representing a year-on-year increase of 9.3%[20] - The revenue from Smart PDLC products recorded a year-on-year increase of 38.3%, maintaining a leading market share position in the PRC[21] - In 2023, revenue from smart light-adjusting products increased by 38.3%, maintaining a leading market share in the domestic market[25] - Revenue from sales of ITO film was approximately RMB 26.9 million, representing a decrease of 24.6% from RMB 35.7 million in 2022[35] - Revenue from smart PDLC products reached approximately RMB 48.9 million, an increase of 38.1% from RMB 35.4 million in 2022[36] - Revenue from the LED Display and Projection System was approximately RMB 258,000, reflecting a significant increase of 7.3 times compared to the previous year[39] - Revenue from other products amounted to approximately RMB 9.2 million, an increase of approximately RMB 2.3 million from RMB 6.9 million in 2022[40] - The company recorded a loss attributable to equity shareholders of approximately RMB 39.8 million for the year, compared to a loss of RMB 13.1 million in 2022, primarily due to impairment losses on trade receivables[41] - The gross profit increased by approximately RMB 10.6 million or 89.1%, from approximately RMB 11.9 million in 2022 to approximately RMB 22.5 million in 2023, with the gross profit margin rising from approximately 15.2% to 26.3%[52] - The cost of sales decreased by approximately RMB 3.3 million or 5.0%, from approximately RMB 66.2 million in 2022 to approximately RMB 62.9 million in 2023[51] - The administrative expenses were approximately RMB 21.3 million for the year ended December 31, 2023, a decrease of approximately RMB 1.4 million or 6.2% from approximately RMB 22.7 million in 2022[54] Research and Development - The company applied for a total of 15 patents in 2023, including 4 inventions and 11 utility models, and obtained 13 authorized patents[27] - The company aims to strengthen its innovative chain from research to practical application to consolidate its leading position in the new material industry[30] - The Group's Directors believe that substantial resources should be devoted to research and development to maintain competitiveness in the evolving market[45] - The Group plans to remain cautious in expanding production lines and conducting research and development projects in response to future demand[46] Production and Operations - The Group effectively reduced production costs by changing the operation model and improving production techniques across all areas of operations[22] - The production of motor vehicle films continued to expand, tapping into the motor vehicle sector and joining the supplier system of well-known automotive glass manufacturers[23] - The company continues to expand its automotive film production and has joined the supplier system of well-known automotive glass manufacturers[25] Financial Position and Liquidity - As of December 31, 2023, the Group had short-term borrowings of RMB 11.8 million and long-term borrowings of RMB 18.0 million[60] - The gearing ratio remained stable at approximately 54.9% as of December 31, 2023, compared to approximately 54.7% as of December 31, 2022[62] - The Group's liquidity requirements are expected to be satisfied through a combination of cash generated from operating activities, bank borrowings, and proceeds from the Listing[60] Impairment and Credit Losses - Impairment losses on overdue trade receivables recognized during the year ended December 31, 2023, totaled approximately RMB 45.21 million, primarily from balances over three years old[73] - The recoverable amount of overdue trade receivables with aging over three years was assessed to be nil, leading to the recognition of expected credit losses[84] - The allowance for expected credit losses for trade receivables was recognized at approximately RMB 45.21 million for the year ended December 31, 2023[89] - As of December 31, 2023, the company recognized a trade receivables credit loss provision of approximately RMB 45,212,000[91] Corporate Governance - The Company has complied with all applicable code provisions of the Corporate Governance Code during the year ended December 31, 2023, except for a deviation from paragraph C.2.1[109] - Four Board meetings and one general meeting were held during the Relevant Period, with attendance rates of 100% for some Executive Directors[116][117] - The Board consists of 3 Executive Directors, 1 Non-executive Director, and 3 Independent Non-executive Directors, meeting the requirement of having at least one-third independent members[114][118] - Each Independent Non-executive Director has confirmed their independence annually, and the Nomination Committee has assessed their independence[120][123] - The Company has established mechanisms to ensure independent views are available to the Board, which will be reviewed annually[122][123] - The Company has adopted a code of conduct for directors' securities transactions, ensuring compliance with GEM Listing Rules[113] - The Board has reviewed and monitored the training and continuous professional development of Directors and senior management[112] - The Company has policies in place to ensure compliance with legal and regulatory requirements[112] - The Nomination Committee assesses the independence of new candidates for Independent Non-executive Directors before appointment[123] - The Board's current structure and composition are deemed effective in providing balanced and independent oversight of management practices[121] Shareholder Communication - The Company maintains a transparent and timely disclosure policy to keep shareholders informed of its business performance and strategies[182] - Shareholders holding at least one-tenth of the paid-up capital have the right to requisition a special general meeting[189] - Shareholders can request the Company to circulate proposals at a general meeting if they hold at least 5% of the total voting rights[190] - The Company has adopted a shareholders' communication policy to maintain effective communication channels, including general meetings and its website[196] - The annual general meeting (AGM) serves as a principal channel for shareholders to question Directors about the Company's performance[196] - The Company engages independent scrutineers to ensure proper counting of votes at general meetings[184] - All voting results from general meetings will be posted on the Company's and HKEx's websites in a timely manner[184] - The company aims to disclose relevant information to shareholders in a timely manner, including annual and interim reports that provide a comprehensive assessment of the Group's position and prospects[200] - Communication methods include press releases on major developments, disclosures to the Stock Exchange, and responses to inquiries from shareholders or media[200] - The company’s website serves as a platform for public access to corporate announcements, press releases, annual reports, and general corporate information[200]

Financial Performance - The company's revenue for the year ended December 31, 2023, was RMB 85,353,000, an increase of 9.3% compared to RMB 78,057,000 in 2022[5] - Gross profit for the same period was RMB 22,485,000, representing a gross margin of 26.3%, up from 15.2% in the previous year[5] - The company reported a pre-tax loss of RMB 50,836,000, compared to a loss of RMB 14,824,000 in 2022, indicating a significant increase in losses[5] - Loss attributable to equity shareholders was RMB 39,779,000, compared to RMB 13,098,000 in the prior year, reflecting a worsening financial position[5] - Total revenue from customer contracts for 2023 was RMB 85,353,000, an increase of 9.3% from RMB 78,057,000 in 2022[28] - Sales revenue from ITO conductive films was approximately RMB 26.9 million, a decrease of about RMB 8.8 million or 24.6% compared to RMB 35.7 million in the same period of 2022[36] - Sales revenue from smart dimming products was approximately RMB 48.9 million, an increase of about RMB 13.5 million or 38.1% compared to RMB 35.4 million in the same period of 2022[37] - Sales revenue from LED display screens and projection systems was approximately RMB 25.8 thousand, an increase of RMB 22.7 thousand or 7.3 times compared to the previous year[37] - Gross profit increased from approximately RMB 11.9 million in 2022 to approximately RMB 22.5 million in 2023, representing an increase of about RMB 10.6 million or 89.1%, with the gross margin rising from approximately 15.2% to 26.3%[43] - The company reported a net loss attributable to equity shareholders of RMB 39,779,000 for 2023, compared to a loss of RMB 13,098,000 in 2022[31] Asset and Liability Management - The company experienced a substantial increase in trade receivables, which amounted to RMB 82,188,000, down from RMB 123,723,000 in 2022, indicating a decrease in sales collection efficiency[10] - Total assets decreased to RMB 157,725,000 from RMB 219,313,000 in the previous year, showing a decline in the company's asset base[10] - The company's net assets were reported at RMB 161,852,000, down from RMB 204,557,000 in 2022, indicating a reduction in shareholder equity[11] - Cash and cash equivalents decreased to RMB 44,409,000 from RMB 59,535,000 in 2022, reflecting a decline in liquidity[10] - The total assets less current liabilities for 2023 were RMB 249,577,000, a decrease from RMB 250,609,000 in 2022[25] - The company’s total liabilities increased to RMB 81,032,000 in 2023 from RMB 80,000,000 in 2022[26] - The company recognized an impairment loss of approximately RMB 45.21 million for trade receivables, primarily related to overdue balances exceeding three years[52] - The expected credit loss provision for trade receivables was approximately RMB 45.21 million as of December 31, 2023, reflecting the assessment of credit risk and market conditions[57] Government Subsidies and Adjustments - The company received a government subsidy of RMB 720,000, which was later returned in 2023 due to project termination[16] - A government subsidy of RMB 1,032,000 was also returned in 2023 after the company was deemed ineligible[20] - Adjustments to the consolidated financial statements resulted in a decrease in total comprehensive income from RMB 19,828,000 to RMB 18,076,000 for the year ended December 31, 2019[23] - The total liabilities increased by RMB 1,032,000 due to the adjustment of the government subsidy[20] - The company’s total comprehensive income for the year ended December 31, 2019, was impacted by the adjustments related to government subsidies[18] Corporate Governance and Management - The company has adhered to the corporate governance code principles as per GEM listing rules, with some deviations noted[76] - Zhang Chao was appointed as Chairman and CEO on January 25, 2021, but stepped down as Chairman on July 13, 2023, with Du Peng taking over the role, ensuring compliance with corporate governance codes[77] - The Audit Committee, established on July 21, 2017, consists of three independent non-executive directors and is responsible for reviewing the financial reporting process and internal controls[80] - The company has taken measures to maintain a balance of power and authority between the board and management, which is deemed beneficial for business prospects[77] - The board is continuously evaluating the business strategy and may revise plans in response to changing market conditions[63] Future Plans and Strategy - The company plans to diversify its product portfolio and maintain a cautious approach in expanding production lines and R&D projects to meet future demand[40] - The actual utilization of the proceeds is lower than planned due to delays in the automation and installation of production lines, impacting the business strategy to slow down operations to mitigate short-term risks[63] - The company aims to maintain a healthy financial position and sustainable business growth amid a slowly recovering domestic market[63] Shareholder Information - Major shareholders include China Water Development Industry Group Limited, holding 62.37% of shares, and AMATA Limited, holding 7.69%[66] - The total number of issued shares as of December 31, 2023, is 520,000,000, with the percentage calculations based on this figure[67] - No final dividend is recommended for the year, with actual dividend payments dependent on the group's performance and overall economic conditions[64] Financial Reporting and Compliance - The financial data presented does not constitute audited accounts for the year ending December 31, 2023, but is an excerpt from the consolidated financial statements[82] - The company will issue its annual report containing all information required by listing rules to shareholders in due course[84] - The announcement will be published on the GEM website and the company's website for at least seven days from the publication date[86]

Financial Performance - For the year ended December 31, 2023, the company reported revenue of RMB 85,353,000, an increase of 9.3% compared to RMB 78,057,000 in 2022[5] - Gross profit for the same period was RMB 22,485,000, representing a gross margin of 26.3%, up from 15.2% in the previous year[5] - The company recorded a pre-tax loss of RMB 50,836,000, compared to a loss of RMB 14,824,000 in 2022, indicating a significant increase in losses[5] - Loss attributable to equity shareholders was RMB 39,779,000, compared to RMB 13,098,000 in the prior year, reflecting a worsening financial position[5] - The company reported a net loss of RMB 42,356,000 for the year, compared to RMB 13,511,000 in 2022[7] - The company reported a net loss attributable to equity shareholders of RMB 39,779,000 for the year ended December 31, 2023, compared to a loss of RMB 13,098,000 in 2022[31] Asset Management - Total assets decreased to RMB 257,016,000 from RMB 293,605,000 in the previous year, indicating a decline in asset base[10] - The company’s net asset value decreased to RMB 161,852,000 from RMB 204,557,000, reflecting a decline in overall equity[11] - The total assets less current liabilities decreased to RMB 249,577,000 as of December 31, 2023, down from RMB 250,609,000 in 2022[25] - Non-current assets totaled RMB 96,357,000 as of December 31, 2023, showing a slight decrease from RMB 102,138,000 in 2022[25][26] Cash Flow and Liquidity - Cash and cash equivalents at year-end were RMB 44,409,000, down from RMB 59,535,000 in 2022, indicating reduced liquidity[10] - Cash and cash equivalents increased to RMB 26,757,000 in 2023, compared to RMB 8,293,000 in 2022[26] - Trade receivables and bills receivable aged within three months increased to RMB 27,676,000 in 2023 from RMB 20,439,000 in 2022[33] - The company has a structured approach to recover trade receivables, including analysis and communication, reminders, payment negotiations, legal actions, and debt collection agencies[59] Government Subsidies - The company received a government subsidy of RMB 720,000 for a project related to thermochromic materials, which was fully recognized in the financial statements for the year ended December 31, 2019[16] - The company returned the RMB 720,000 subsidy to the local government in 2023 after terminating the project due to ongoing COVID-19 impacts[17] - A second government subsidy of RMB 1,032,000 was also returned in 2023 after the company was deemed ineligible for the unemployment insurance compensation plan[20] Revenue Breakdown - Total revenue from customer contracts for 2023 was RMB 85,353,000, an increase of 9.3% from RMB 78,057,000 in 2022[28] - Sales of smart dimming products increased significantly to RMB 48,943,000 in 2023, up 38.2% from RMB 35,399,000 in 2022[28] - Sales revenue from ITO conductive films was approximately RMB 26.9 million, a decrease of about RMB 8.8 million or 24.6% compared to RMB 35.7 million in the same period of 2022[36] - Sales revenue from LED display screens and projection systems was approximately RMB 25.8 thousand, an increase of 22.7 thousand or 7.3 times compared to the previous year[37] Expenses and Cost Management - Administrative expenses decreased by approximately RMB 1.4 million or 6.2% to about RMB 21.3 million, with the ratio to revenue decreasing from approximately 29.0% to 24.9%[45] - Capital expenditures for the year were approximately RMB 8.0 million, down from RMB 10.6 million in 2022, primarily due to purchases of production machinery[47] Corporate Governance - The board is committed to good corporate governance and has applied the principles of the GEM Listing Rules during the relevant period, with some deviations noted[76] - Zhang Chao was appointed as Chairman and CEO on January 25, 2021, but resigned as Chairman on July 13, 2023, with Du Peng taking over the Chairman role, ensuring compliance with corporate governance codes[77] - The Audit Committee, established on July 21, 2017, consists of three independent non-executive directors and is responsible for reviewing the financial reporting process and internal controls[80] Future Plans and Strategy - The company plans to diversify its product portfolio and maintain a cautious approach to expanding production lines and R&D projects to meet future expected demand[40] - The company plans to install a super-wide production line for smart dimming products, with an expected completion date in 2024, having utilized only HKD 0.6 million of the allocated HKD 11.5 million[61] Shareholder Information - Major shareholders include China Water Development Energy Group Limited, holding 62.37% of shares, and AMATA Limited, holding 7.69%[66] - The company does not recommend the payment of a final dividend, with actual dividend payout rates to depend on the group's performance and overall economic conditions[64]

Financial Performance - The company reported a significant increase in revenue for Q3 2023, achieving a total of $XX million, representing a YY% growth compared to the same period last year[11]. - Revenue for the three months ended September 30, 2023, was RMB 24,967,000, a 116.5% increase compared to RMB 11,551,000 in the same period of 2022[19]. - Gross profit for the nine months ended September 30, 2023, was RMB 16,062,000, representing a 93.8% increase from RMB 8,302,000 in the same period of 2022[19]. - Profit before tax for the three months ended September 30, 2023, was RMB 4,371,000, compared to a loss of RMB 2,874,000 in the same period of 2022[19]. - Profit for the period attributable to equity shareholders was RMB 3,935,000 for the three months ended September 30, 2023, compared to a loss of RMB 2,306,000 in the same period of 2022[19]. - Total comprehensive income for the three months ended September 30, 2023, was RMB 4,349,000, compared to a loss of RMB 2,736,000 in the same period of 2022[19]. - Earnings per share for the three months ended September 30, 2023, was RMB 0.008, compared to a loss per share of RMB 0.004 in the same period of 2022[19]. - The Group recorded a profit before tax of RMB 1.379 million for the nine months ended September 30, 2023, compared to a loss of RMB 4.549 million in the same period of 2022[58]. Revenue Breakdown - For the nine months ended September 30, 2023, the Group's total revenue from contracts with customers was RMB 58,540,000, a slight increase from RMB 56,333,000 in the same period of 2022, representing a growth of 3.9%[41]. - Revenue from the sale of Smart PDLC products significantly increased to RMB 31,760,000 for the nine months ended September 30, 2023, compared to RMB 23,370,000 in the same period of 2022, marking a growth of 35.5%[41]. - The revenue from ITO film sales for the nine months ended September 30, 2023, was RMB 18,356,000, down from RMB 23,483,000 in the same period of 2022, indicating a decline of 21.7%[41]. - Domestic revenue from Mainland China for the nine months ended September 30, 2023, was RMB 36,860,000, a decrease from RMB 43,361,000 in the same period of 2022, reflecting a decline of 14.5%[45]. - The Group's revenue from other markets increased to RMB 21,680,000 for the nine months ended September 30, 2023, compared to RMB 12,972,000 in the same period of 2022, showing a growth of 67.3%[45]. Future Outlook - The company has provided a positive outlook for the next quarter, projecting revenue growth of BB% and an increase in user engagement metrics[11]. - New product launches are expected to contribute to revenue, with an estimated impact of $CC million in the upcoming quarter[11]. - Market expansion efforts are underway, targeting new regions with a projected increase in market share of EE% by the end of the fiscal year[11]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified that could enhance operational capabilities[11]. Cost Management and Efficiency - Cost management strategies have been implemented, aiming to reduce operational expenses by FF% over the next year[11]. - The company has reported a gross margin of GG%, reflecting improved efficiency in production processes[11]. - Selling and distribution expenses for the nine months ended September 30, 2023, were RMB 3,704,000, slightly higher than RMB 3,615,000 in the same period of 2022[19]. - Administrative expenses decreased by approximately 7.3% to RMB 12.2 million for the nine months ended September 30, 2023, down from RMB 13.1 million for the same period in 2022[88]. Research and Development - The company is investing in R&D for innovative technologies, allocating $DD million towards this initiative to enhance product offerings[11]. - The Group is engaged in the research and development of ITO film and related products, positioning itself as one of the few integrated manufacturers in the PRC[65]. - The Group's Directors believe that substantial resources should be devoted to research and development to maintain competitiveness in the evolving market[75]. Credit Management - The company has implemented proactive credit control procedures to manage credit risk effectively, aiming to minimize adverse impacts on financial performance[107]. - Delays in customer payments were attributed to challenging economic conditions and financial difficulties faced by some customers, but the company has successfully negotiated settlements for outstanding amounts[108]. - The provision matrix for estimating allowances for credit losses on trade receivables is based on the past due date, with different provision rates applied according to the length of time receivables have been outstanding[109]. - Proactive measures have been taken to recover long-aged receivables, including intensified collection efforts and exploring legal remedies if necessary[111]. Corporate Governance - The company has established an Audit Committee to review financial reporting processes and internal controls, ensuring compliance with applicable accounting principles[121]. - The Audit Committee consists of three independent non-executive Directors, with Ms. Pan Jianli serving as the chairperson[122]. - The Audit Committee was established on July 21, 2017, in compliance with GEM Listing Rule 5.28, with responsibilities including reviewing the financial reporting process and risk management systems[126]. Share Option Scheme - As of September 30, 2023, a total of 4,690,000 share options have been granted under the Share Option Scheme, representing 0.9% of the issued shares of the Company[133]. - During the nine months ended September 30, 2023, 410,000 options were forfeited due to resignations, with no options exercised during this period[133]. - The Share Option Scheme aims to incentivize selected Eligible Persons for their contributions to the growth and development of the Group[128]. - The Share Option Scheme will remain in force for a period of ten years, expiring on 16 October 2027, unless terminated earlier by shareholders[144]. Shareholding Structure - China Shuifa Singyes Energy Holdings Limited holds a beneficial interest in 324,324,325 shares, representing approximately 62.37% of the total shareholding[154]. - As of September 30, 2023, Water Development (HK) holds 1,687,008,585 shares of Shuifa Singyes, representing approximately 66.92% of the issued share capital[155]. - The total number of shares issued by the Company as of September 30, 2023, is 520,000,000[161]. - The Company is subject to a non-competition deed with Shuifa Singyes, ensuring no competing businesses are engaged by its controlling shareholders[166].

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。 截至二零二三年九月三十日止九個月的第三季度業績公告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交 所上市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風 險，並應經過審慎周詳的考慮後方可作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣 之證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量 的市場。 本公告的資料乃遵照聯交所GEM證券上市規則（「GEM上市規則」）之規定而刊載， ...

Corporate Governance - The company has recognized the importance of good corporate governance and has complied with all applicable code provisions during the six months ended June 30, 2023, except for a deviation from Code Provision C.2.1[19] - Mr. Zhang Chao was appointed as Chairman and Chief Executive Officer on January 25, 2021, but resigned as Chairman on July 13, 2023, with Mr. Du Peng appointed as the new Chairman, ensuring compliance with Code Provision C.2.1[20] - The company has established a structure for the Board to facilitate effective decision-making and strategy implementation[20] - The company has a compliance officer and a company secretary to ensure adherence to regulatory requirements[12] - The company has appointed an independent auditor to enhance the credibility of its financial reporting[15] - The Audit Committee has reviewed the financial reporting process and confirmed compliance with applicable accounting principles for the six months ended June 30, 2023[33] - The Audit Committee consists of three independent non-executive Directors, ensuring oversight of the company's financial reporting and risk management systems[28] Market and Operational Risks - The company operates in a market designed for small and mid-sized companies, which may involve higher investment risks compared to other companies listed on the Stock Exchange[2] - Securities traded on GEM may be more susceptible to high market volatility, and there is no assurance of a liquid market for these securities[3] Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 33.6 million, a decrease of RMB 11.2 million or 25.0% from RMB 44.8 million for the same period in 2022[100] - Revenue from ITO film sales was RMB 13.5 million for the six months ended June 30, 2023, representing a decrease of RMB 5.4 million or 28.6% from RMB 18.9 million for the same period in 2022[90] - Revenue from Smart PDLC products was RMB 15.9 million for the six months ended June 30, 2023, a decrease of RMB 0.8 million or 4.8% from RMB 16.7 million for the same period in 2022[89] - Revenue from other products was RMB 4.2 million for the six months ended June 30, 2023, a decrease of RMB 5.0 million or 54.3% from RMB 9.2 million for the same period in 2022[94] - The company recorded a loss attributable to owners of RMB 3.0 million for the six months ended June 30, 2023, compared to a loss of RMB 2.5 million for the same period in 2022[95] - The company reported a loss for the period of RMB 2,958,000, which is an increase from a loss of RMB 1,675,000 in the same period of 2022[143] - Loss before tax for the six months ended June 30, 2023, was RMB 4,118,000, compared to a loss of RMB 2,898,000 in the previous year[143] Share Option Scheme - A total of 4,690,000 share options have been granted under the Share Option Scheme, representing 0.9% of the issued Shares of the Company[42] - The maximum number of Shares issued under the Share Option Scheme to any Eligible Person in any 12-month period shall not exceed 1% of the number of Shares in issue without shareholder approval[43] - The total number of Shares available under the Share Option Scheme must not exceed 10% of the total issued share capital as of October 17, 2017, equating to 480,000,000 Shares[41] - During the six months ended June 30, 2023, 410,000 options were forfeited due to resignations, with no options exercised during this period[42] - The total outstanding share options as of June 30, 2023, is 4,690,000, with no options exercised during the reporting period[59] - The exercise price for the share options is set at HK$1.16 per share, which is the price determined by the Board[59] - The Share Option Scheme will remain in effect for a total of ten years from October 17, 2017, expiring on the day immediately preceding the tenth anniversary unless terminated earlier[54] Financial Position and Assets - As of June 30, 2023, non-current assets increased to RMB 95,310,000 from RMB 94,292,000 as of December 31, 2022, reflecting a growth of 1.08%[146] - Current assets decreased slightly to RMB 216,015,000 from RMB 219,313,000, a decline of 1.05%[146] - Trade receivables rose significantly to RMB 145,730,000, up 17.77% from RMB 123,723,000[146] - Current liabilities increased to RMB 78,546,000 from RMB 77,259,000, marking a rise of 1.66%[147] - Net assets as of June 30, 2023, were RMB 204,202,000, down from RMB 206,309,000, a decrease of 1.02%[147] - Total equity attributable to equity shareholders decreased to RMB 198,836,000 from RMB 201,006,000, a decline of 1.08%[147] Cash Flow and Liquidity - The Group reported a net cash used in operating activities of RMB (9,133,000), an improvement from RMB (11,873,000) in the same period last year[151] - Net cash used in investing activities was RMB (3,508,000), compared to RMB 7,561,000 generated in the same period of 2022[151] - Financing activities resulted in a net cash outflow of RMB (9,331,000), a significant decrease from RMB 32,717,000 generated in the previous year[151] - Cash and cash equivalents decreased to RMB 35,854,000 from RMB 59,535,000, a significant drop of 39.87%[146] Employee and Operational Insights - The company had a total headcount of 118 full-time employees as of June 30, 2023[138] - The company plans to enhance its production capabilities through various projects, including the installation of automated production lines by the end of 2023[136] - The company is focusing on overseas business expansion and research and development of new materials and products, with allocated proceeds of HK$9.8 million and HK$21.2 million respectively[134] Revenue and Market Conditions - In the first half of 2023, the Group faced intense competition in the saturated domestic market, resulting in a decrease in sales compared to the same period in 2022[87] - Domestic revenue from Mainland China was RMB 25,949,000, representing a decline of 30.9% compared to RMB 37,565,000 in the first half of 2022[174] Dividends and Shareholder Returns - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2023[137] - No interim dividend was proposed for the six months ended June 30, 2023, nor for the same period in 2022, and no final dividend was declared for the year ended December 31, 2022[193][194]

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。 截至二零二三年六月三十日止六個月的中期業績公告 香港聯合交易所有限公司（「聯交所」） 的特色 GEM GEM之定位，乃為相比起其他在聯交所上市的中小企帶有較高投資風險之公司提 供一個上市的市場。有意投資的人士應了解投資於該等公司的潛在風險，並應經過 審慎周詳的考慮後方作出投資決定。 由於GEM上市公司一般為中小企，在GEM買賣的證券可能會較於主板買賣之證 券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市 場。 本公告的資料乃遵照聯交所GEM證券上市規則（「GEM上市規則」）之規定而刊載， ...

Financial Performance - The company reported a significant increase in revenue for the first quarter of 2023, with a year-on-year growth of 25%[10]. - Revenue for the three months ended March 31, 2023, was RMB 16,573,000, a 1.5% increase from RMB 16,335,000 in the same period of 2022[18]. - Gross profit increased significantly to RMB 2,743,000, compared to RMB 1,331,000 in the previous year, representing a 106.1% increase[18]. - Loss before tax for the period was RMB 2,914,000, compared to a loss of RMB 1,795,000 in the same period of 2022, indicating a deterioration in performance[18]. - Loss for the period was RMB 2,917,000, up from RMB 1,491,000 in the previous year, reflecting a 95.5% increase in losses[18]. - Basic and diluted loss per share was RMB (0.006), compared to RMB (0.004) in the same period of 2022[18]. - Total comprehensive loss for the period was RMB 2,917,000, compared to a total comprehensive loss of RMB 685,000 in the previous year[18]. - The company reported a foreign exchange loss of RMB 61,000, compared to a gain of RMB 264,000 in the same period of 2022[18]. - For the three months ended March 31, 2023, the company's revenue was approximately RMB 16.5 million, representing an increase of RMB 0.2 million or 1.5% compared to approximately RMB 16.3 million for the same period in 2022[75]. Revenue Breakdown - Revenue from the sale of ITO film was RMB 7,204,000, a decrease of 10.8% from RMB 8,079,000 in the previous year[41]. - Revenue from Smart PDLC products was RMB 6,471,000, down 14.8% from RMB 7,593,000 in the same period of 2022[41]. - Revenue from other products increased significantly to RMB 2,898,000, compared to RMB 663,000 in the same period last year, marking a growth of 337.3%[41]. - Domestic revenue from Mainland China accounted for RMB 12,514,000, an increase from RMB 12,244,000 in the previous year, reflecting a growth of 2.2%[44]. Cost Management - Operating expenses have been reduced by 5% due to improved efficiency measures implemented in Q1 2023[10]. - Selling and distribution expenses decreased to RMB 948,000 from RMB 1,636,000, a reduction of 42.1%[18]. - Administrative expenses decreased to RMB 3,932,000 from RMB 4,358,000, a reduction of 9.8%[18]. - The cost of inventories sold for the three months ended March 31, 2023 was RMB 13,549,000, a decrease from RMB 14,848,000 in the same period of 2022, reflecting a reduction of approximately 8.7%[51]. - Employee benefit expenses for the three months ended March 31, 2023 totaled RMB 3,576,000, down from RMB 4,973,000 in the same period of 2022, indicating a decrease of approximately 28.1%[51]. Future Outlook - The company has provided a positive outlook for the upcoming quarters, projecting a revenue growth of 20% for the full year 2023[10]. - New product launches are expected to contribute an additional 10% to revenue, with two major products set to be released in Q2 2023[10]. - Market expansion plans include entering two new international markets by the end of 2023, aiming for a 30% increase in market share[10]. - The company plans to remain cautious in expanding production lines and conducting research and development projects to meet expected future demand[74]. Research and Development - The company is investing in new technology development, allocating approximately $5 million for R&D in the next quarter[10]. - The company continues to engage in the research and development of Smart Polymer-Dispersed Liquid Crystals and other related products[21]. - The Group's research costs for the three months ended March 31, 2023 were RMB 555,000, a decrease of approximately 55.0% from RMB 1,235,000 in the same period of 2022[51]. Corporate Governance - The Company believes that combining the roles of Chairman and CEO will not impair the balance of power and authority within the management structure[105]. - The Company has complied with the Corporate Governance Code principles during the relevant period, with a noted deviation from paragraph C.2.1[104]. - The Audit Committee, established on 21 July 2017, is responsible for reviewing the financial reporting process and internal control systems[109]. - The Audit Committee consists of three independent non-executive Directors, with Ms. Pan Jianli serving as the chairperson[110]. - The Audit Committee reviewed the unaudited consolidated financial statements for the three months ended 31 March 2023, confirming compliance with applicable accounting principles[111]. Share Options and Ownership - The Share Option Scheme allows the Company to grant options to eligible persons, with a total of 480,000,000 shares available for issuance[117]. - As of the report date, 5,100,000 share options have been granted, representing 0.981% of the issued shares of the Company[123]. - The exercise price for the share options is set at HK$1.16 per share[126]. - The Share Option Scheme will remain in effect for a total of ten years, expiring on October 16, 2027[132]. - The total number of outstanding share options as of March 31, 2023, remains unchanged at 5,100,000[139]. Shareholding Structure - As of March 31, 2023, China Shuifa Singyes Energy Holdings Limited holds 324,324,325 shares, representing approximately 62.37% of the total shareholding[144]. - Water Development (HK) Holdings Co., Limited also holds 324,324,325 shares, equivalent to 62.37% of the shareholding[144]. - AMATA Limited is a beneficial owner of 40,000,000 shares, accounting for 7.69% of the total shareholding[144]. - The total number of shares issued as of March 31, 2023, is 520,000,000[149]. - The company has not reported any forfeited or surrendered options during the reporting period[139]. Compliance and Non-Competition - The controlling shareholders confirmed compliance with the non-competition deed during the reporting period[167]. - No directors or controlling shareholders had any business interests that compete with the Group's business during the reporting period[166]. - The company has not engaged in any business that competes with the Group's business as per the non-competition agreement[165].

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。 China Singyes New Materials Holdings Limited 中 國 興 業 新 材 料 控 股 有 限 公 司 （於百慕達註冊成立的有限公司） （股份代號：8073） 截至二零二三年三月三十一日止三個月的第一季度業績公告 香港聯合交易所有限公司（「聯交所」）GEM的特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交 所上市的公司帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風 險，並應經過審慎周詳的考慮後方作出投資決定。 由於GEM上市公司普遍為中小型公司，在GEM買賣的證券可能會較於主板買賣 之證券承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量 的市場。 本公告的資料乃遵照聯交所GEM證券上市規則（「GEM上市規則」）之規定而刊載， ...

Financial Performance - For the year ended December 31, 2022, the Group's revenue was RMB 78.1 million, representing a year-on-year decrease of 40.5%[19] - Revenue from ITO film sales was approximately RMB 35.7 million for the year ended December 31, 2022, representing a decrease of approximately RMB 12.1 million or 25.3% from RMB 47.8 million in 2021[34] - Revenue from Smart PDLC products was approximately RMB 35.4 million for the year ended December 31, 2022, a decrease of approximately RMB 6.1 million or 14.7% from RMB 41.5 million in 2021[35] - Revenue from the LED Display and Projection System was approximately RMB 31,000 for the year ended December 31, 2022, showing a significant decrease compared to the same period in 2021[38] - Revenue from other products was approximately RMB 6.9 million for the year ended December 31, 2022, a decrease of approximately RMB 23.5 million from RMB 30.4 million in 2021[39] - The company recorded a loss attributable to owners of approximately RMB 13.1 million for the year ended December 31, 2022, compared to a loss of approximately RMB 18.2 million for the same period in 2021[40] - Revenue for the year ended December 31, 2022, was approximately RMB 78.1 million, representing a decrease of approximately RMB 53.2 million or 40.5% from approximately RMB 131.3 million for the same period in 2021[46] - Gross profit decreased by approximately RMB 13.1 million or 52.4%, from approximately RMB 25.0 million for the year ended December 31, 2021, to approximately RMB 11.9 million for the year ended December 31, 2022[51] - Gross profit margin decreased from approximately 19.1% for the year ended December 31, 2021, to approximately 15.2% for the same period in 2022[51] Production and Market Development - The production of ITO film recorded a year-on-year increase of 10%, accounting for nearly 65% of the market share in the PRC[20] - The official bulk production of motor vehicle films was realized, establishing a foundation for entering the motor vehicle sector[22] - The market development for multimedia screen door systems for railways achieved breakthroughs in cities such as Lanzhou and Jinan[22] - In 2022, the production of ITO conductive film increased by 10% year-on-year, with a market share close to 65% in the domestic market[24] - The company successfully launched mass production of automotive films in 2022, establishing a foundation for entering the automotive industry[24] Cost Management and Expenses - The Group effectively reduced production costs by changing the operation model and improving production techniques across all areas of operations[21] - Selling and distribution expenses were approximately RMB 4.9 million for the year ended December 31, 2022, a decrease of approximately RMB 1.2 million or 19.7% from approximately RMB 6.1 million for the same period in 2021[52] - Administrative expenses were approximately RMB 22.7 million for the year ended December 31, 2022, a decrease of approximately RMB 3.3 million or 12.7% from approximately RMB 26.0 million for the same period in 2021[53] Innovation and Patents - The company applied for a total of 17 patents in 2022, including 4 inventions and 13 utility models, and obtained 19 authorized patents[26] - The company aims to strengthen its innovative chain from theoretical research to practical application to consolidate its leading position in the new material industry[29] Strategic Planning and Market Position - The company plans to diversify its product range in response to rapidly changing market conditions for Smart PDLC products[44] - The company aims to maintain a prudent and stable strategy while closely monitoring economic changes and responding proactively to challenges and opportunities[45] - The company believes its market-leading position in ITO film and Smart PDLC products reflects sufficient market demand for its products[44] Financial Management and Governance - The gearing ratio as of December 31, 2022, was approximately 52.0%, up from 42.3% in the previous year[69] - The Group had capital commitments of approximately RMB4.5 million as of December 31, 2022, consistent with the previous year[70] - No significant contingent liabilities were reported as of December 31, 2022[75] - The Group did not engage in any material acquisitions or disposals during the year ended December 31, 2022[77] - Financial risk management objectives and policies are outlined in the consolidated financial statements, indicating a structured approach to managing financial risks[107][109] - The Group's corporate governance practices have been reviewed and comply with applicable code provisions, ensuring effective accountability and management oversight[111][114] Board and Management Structure - The Board held four meetings and one general meeting during the year ended December 31, 2022, with attendance rates of 100% for executive directors[119] - Mr. Zhang Chao was appointed as Chairman and Chief Executive Officer on January 25, 2021, following the resignations of Mr. Sun Jinli and Mr. Liu Hongwei[129] - The Board complies with GEM Listing Rules, maintaining at least three independent non-executive directors, representing more than one-third of the Board[121] - Each independent non-executive director confirmed their independence in accordance with GEM Listing Rules, ensuring no material relationships exist among directors[123] - The Company has established a code of conduct for directors' securities transactions, ensuring compliance with GEM Listing Rules[115] - The current structure and composition of the Board are deemed effective for independent monitoring of management practices[124] - The Company has a policy for director rotation, requiring one-third of directors to retire by rotation at each annual general meeting[130] - The Board believes that combining the roles of Chairman and Chief Executive Officer does not impair the balance of power and authority within the Company[129] Risk Management and Internal Controls - The Audit Committee reviewed the effectiveness of internal controls and risk management for the year ended December 31, 2022[147] - The Group has engaged external independent professionals to review its risk management and internal control systems, which the Directors consider effective and adequate[175] - There is currently no internal audit function within the Group; the Board believes it is more cost-effective to appoint external professionals as needed[175] - The Board is responsible for the Group's risk management and internal control system, which is reviewed at least annually, covering all material controls including financial, operational, and compliance controls[174] Shareholder Engagement and Communication - The Company maintains a transparent and timely disclosure policy to keep shareholders informed of its business performance and strategies[180] - The annual general meeting (AGM) provides a platform for the Board to interact with shareholders, with all relevant documents sent at least 20 business days prior to the meeting[181] - Shareholders holding at least 10% of the paid-up capital have the right to requisition a special general meeting[187] - Shareholders holding at least 5% of total voting rights can request the Company to circulate resolutions intended to be moved at the next general meeting[188] - The Company publishes all documents on its website to ensure equal access to information for all shareholders[180] Workforce and Employment - The total headcount as of December 31, 2022, was 139, down from 149 in 2021[87] - The Group's workforce decreased from 149 to 139 full-time employees as of December 31, 2022, reflecting a shift in employee compensation structure including basic salary, allowances, and bonuses[92]