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） 截至二零二二年十二月三十一日止年度全年業績公告 香港聯合交易所有限公司（「聯交所」） 的特色 GEM GEM之定位，乃為相比起其他在本交易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 Q3 2022, achieving a total of $X million, representing a Y% growth compared to the same period last year[1]. - Revenue for the nine months ended September 30, 2022, was RMB 56,333,000, a decrease of 30.9% compared to RMB 81,476,000 for the same period in 2021[22]. - Gross profit for the nine months ended September 30, 2022, was RMB 8,302,000, down 53.2% from RMB 17,795,000 in the previous year[22]. - Loss before tax for the nine months ended September 30, 2022, was RMB 5,772,000, compared to a profit of RMB 2,200,000 in the same period of 2021[22]. - The company reported a loss for the period of RMB 4,549,000 for the nine months ended September 30, 2022, compared to a profit of RMB 2,167,000 in 2021[22]. - Total comprehensive loss for the period was RMB 3,003,000 for the nine months ended September 30, 2022, compared to a comprehensive income of RMB 1,635,000 in the previous year[22]. - Other income and gains for the nine months ended September 30, 2022, totaled RMB 6,966,000, down from RMB 12,719,000 in the same period of 2021[22]. - Selling and distribution expenses increased to RMB 3,615,000 for the nine months ended September 30, 2022, compared to RMB 5,627,000 in 2021[22]. - The basic loss per share for the nine months ended September 30, 2022 was RMB 4,858,000, compared to a profit of RMB 1,274,000 for the same period in 2021[59]. - Gross profit margin decreased from 21.8% for the nine months ended September 30, 2021 to 14.7% for the same period in 2022[82]. Revenue Breakdown - Revenue from sales of ITO film for the three months ended September 30, 2022, was RMB 4,596,000, down 62.0% from RMB 12,118,000 in the same period of 2021[40]. - Revenue from Smart PDLC products for the nine months ended September 30, 2022, was RMB 23,370,000, a decrease of 24.5% compared to RMB 30,967,000 for the same period in 2021[40]. - Domestic revenue from Mainland China for the nine months ended September 30, 2022, was RMB 43,361,000, down 42.5% from RMB 75,377,000 in the same period of 2021[44]. - Total revenue from contracts with customers for the three months ended September 30, 2022, was RMB 11,551,000, a decrease of 60.6% from RMB 29,304,000 in the same period of 2021[40]. - Revenue from sales of ITO film was RMB 23.5 million, a decrease of RMB 13.7 million or 36.9% from RMB 37.2 million for the same period in 2021[67]. - Revenue from sales of Smart PDLC products was RMB 23.4 million for the nine months ended September 30, 2022, representing a decrease of RMB 7.6 million or 24.5% from RMB 31.0 million for the same period in 2021[68]. Market and Strategic Initiatives - The company provided an optimistic outlook for the next quarter, projecting revenue growth of B% based on current market trends and user acquisition strategies[1]. - New product launches are expected to contribute an additional $C million in revenue, with anticipated market expansion into D regions[1]. - The company is investing in R&D for new technologies, allocating $E million to enhance product offerings and improve operational efficiency[1]. - Strategic acquisitions are being considered to bolster market presence, with potential targets identified in the E sector[1]. - The company plans to enhance its digital marketing efforts, increasing budget allocation by G% to drive user engagement and sales[1]. - A new partnership with H firm is expected to enhance distribution channels, potentially increasing market share by I%[1]. - The Group faced keen competition in the saturated domestic market, leading to a decrease in sales and gross profit compared to the same period of 2021[66]. Shareholder Information - The company reaffirmed its commitment to shareholder returns, maintaining a dividend payout ratio of J% for the upcoming fiscal year[1]. - No dividend was recommended for the nine months ended September 30, 2022, consistent with the previous year[96]. - The total number of share options as of September 30, 2022, is 6,102,000, with 1,688,000 options lapsed during the period[139]. - The total issued share capital of the company is 520,000,000 shares as of September 30, 2022[148]. - The company has a significant concentration of ownership, with major shareholders holding over 62% of the total shares[145]. - As of September 30, 2022, Mr. Liu Hongwei holds a total of 203,538,750 shares in Shuifa Singyes, representing approximately 8.07% of the total registered share capital[155]. Compliance and Governance - The Audit Committee reviewed the financial reporting process and confirmed compliance with applicable accounting principles for the nine months ended September 30, 2022[109]. - The company maintains compliance with the Securities and Futures Ordinance regarding the disclosure of interests[158]. - Shuifa Singyes has confirmed compliance with the non-competition undertakings during the nine months ended September 30, 2022[169]. - No Directors or controlling shareholders had any business interests that compete with the Group's business during the same period[170].

Financial Performance - The company reported a significant increase in revenue, achieving a total of $X million for the first half of 2022, representing a Y% growth compared to the same period last year[10]. - Revenue for the six months ended June 30, 2022, was RMB 44.8 million, a decrease of RMB 7.4 million or 14.2% from RMB 52.2 million for the same period in 2021[112]. - The company recorded a loss attributable to owners of RMB 2.5 million for the six months ended June 30, 2022, compared to a profit of RMB 0.4 million for the same period in 2021[105]. - The company reported a loss before tax of RMB 2,898,000 for the six months ended June 30, 2022, compared to a profit of RMB 1,263,000 in 2021[164]. - The loss attributable to equity shareholders was RMB 2,552,000, compared to a profit of RMB 422,000 in the previous year[165]. - Revenue from sales of ITO film was RMB 18.9 million for the six months ended 30 June 2022, representing a decrease of RMB 6.2 million or 24.7% from RMB 25.1 million for the same period in 2021[96]. - Revenue from Smart PDLC products was RMB 16.7 million for the six months ended June 30, 2022, representing a decrease of RMB 0.7 million or 3.8% from RMB 17.3 million for the same period in 2021[100]. - Revenue from LED Display and Projection System was RMB 26,000 for the six months ended June 30, 2022, compared to RMB 9.6 million for the same period in 2021[101]. - Revenue from other products was RMB 9.2 million for the six months ended June 30, 2022, a significant increase of RMB 9.0 million or approximately 43.1 times from RMB 0.2 million for the same period in 2021[102]. - Gross profit decreased by RMB 3.7 million or 35.4%, from RMB 10.5 million for the six months ended June 30, 2021, to RMB 6.8 million for the same period in 2022[114]. - Gross profit margin decreased from 20.1% for the six months ended June 30, 2021, to 15.1% for the same period in 2022[114]. Market and Growth Strategies - User data indicates a growth in active users, with an increase of Z% year-over-year, reflecting the company's expanding market presence[10]. - The company has provided a positive outlook for the second half of 2022, projecting a revenue increase of A% based on current market trends and demand forecasts[10]. - New product launches are expected to contribute an additional $B million in revenue, with anticipated market penetration rates of C%[10]. - Market expansion strategies include entering E new regions, which are projected to increase market share by F% over the next year[10]. - The company is considering strategic acquisitions to bolster its competitive position, with potential targets identified in the G sector[10]. - The company plans to diversify its product range in response to rapidly changing market conditions for Smart Light-adjusting products[106]. - The company will maintain a cautious approach in expanding production lines and conducting R&D projects to meet future demand[107]. Research and Development - The company is investing in R&D, allocating $D million towards the development of innovative technologies aimed at enhancing product offerings[10]. - Actual use of net proceeds for research and development of new materials and products was HK$21.2 million, both fully utilized[149]. Governance and Compliance - The management team remains committed to maintaining high standards of corporate governance and transparency throughout the reporting period[10]. - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with GEM Listing Rules, with all directors confirming adherence during the relevant period[28]. - The Audit Committee, established on July 21, 2017, reviews the financial reporting process and internal control systems, ensuring compliance with applicable accounting principles[30]. - The company believes that the consolidation of the roles of Chairman and CEO will not harm the balance of power between the board and management, providing strong leadership[26]. - The company has taken measures to ensure that the balance of power and authority between the board and management remains intact, which is beneficial for business prospects[26]. - The company has established a robust governance structure to effectively seize business opportunities and respond to changes in the market[26]. Share Options and Capital Structure - The total number of shares available under the Share Option Scheme is capped at 10% of the total issued share capital, equating to 480,000,000 shares[41]. - As of June 30, 2022, 1,680,000 share options were forfeited due to resignations, while no options were exercised during the reporting period[44]. - The total number of outstanding share options as of June 30, 2022, is 6,110,000, representing 1.175% of the company's issued shares[44]. - The maximum entitlement for any eligible participant under the Share Option Scheme is limited to 1% of the shares in issue within any 12-month period unless approved by shareholders[43]. - The share option scheme will remain in effect for ten years from October 17, 2017, expiring on the day before the tenth anniversary unless terminated earlier[55]. - The exercise price for share options must be at least the higher of the closing price on the date of grant or the average closing price for the five business days preceding the grant[49]. Financial Position and Assets - As of June 30, 2022, total assets less current liabilities amounted to RMB 255,825,000, an increase from RMB 236,265,000 as of December 31, 2021, representing a growth of approximately 8.5%[169]. - Current assets increased to RMB 228,192,000 from RMB 214,127,000, reflecting a rise of about 6.6%[169]. - Cash and cash equivalents significantly increased to RMB 57,902,000 from RMB 26,757,000, marking a growth of approximately 116.5%[169]. - Current liabilities decreased to RMB 73,464,000 from RMB 80,000,000, showing a reduction of about 8.2%[170]. - Net current assets rose to RMB 154,728,000, up from RMB 134,127,000, indicating an increase of approximately 15.4%[169]. - Non-current liabilities increased to RMB 32,520,000 from RMB 14,026,000, representing a substantial rise of about 131.6%[170]. - Total equity attributable to equity shareholders decreased to RMB 216,176,000 from RMB 217,696,000, a decline of approximately 0.7%[170]. - Inventories increased to RMB 27,745,000 from RMB 24,048,000, reflecting a growth of about 11.2%[169]. - Trade payables decreased to RMB 33,554,000 from RMB 40,084,000, indicating a reduction of approximately 16.3%[169]. Operational Efficiency - Selling and distribution expenses decreased to RMB2.2 million for the six months ended 30 June 2022, a reduction of RMB2.5 million or 53.0% from RMB4.8 million for the same period in 2021, representing 5.0% of revenue compared to 9.2% in 2021[119][123]. - Administrative expenses were RMB8.7 million for the six months ended 30 June 2022, down approximately RMB1.6 million or 15.2% from RMB10.3 million in the same period in 2021, accounting for 19.5% of revenue compared to 19.8% in 2021[120][124]. - Capital expenditure amounted to RMB3,156,000 for the six months ended 30 June 2022, compared to RMB3,497,000 for the same period in 2021, primarily for improvements in production plant and machinery purchases[128][132]. Cash Flow and Financing - The net cash generated from operating activities was RMB (9,133,000), a decrease from RMB 4,432,000 in the same period of 2021[175]. - The company generated RMB 36,000,000 from borrowing during the financing activities, compared to no proceeds in the same period of 2021[175]. - Cash and cash equivalents at the end of the period increased to RMB 57,902,000, up from RMB 7,191,000 at the end of June 2021[175]. - The net cash generated from investing activities was RMB 7,561,000, compared to a net cash used of RMB (2,462,000) in the same period of 2021[175]. - The company reported a net decrease in cash and cash equivalents of RMB 31,145,000 for the period, compared to a decrease of RMB 1,096,000 in the previous year[175].

Compliance and Governance - The first quarterly report for 2022 indicates that China Singyes New Materials Holdings Limited is committed to providing accurate and complete information in compliance with GEM Listing Rules[5]. - The report emphasizes the directors' responsibility for the accuracy of the information provided, highlighting the company's commitment to transparency[8]. - The company has maintained compliance with the Corporate Governance Code, except for a deviation regarding the roles of Chairman and Chief Executive Officer being held by the same individual[111]. - The company has established an Audit Committee consisting of three independent non-executive Directors to oversee financial reporting and risk management[116]. - The Audit Committee has reviewed the financial reporting process and confirmed compliance with applicable accounting principles for the unaudited consolidated financial statements for the three months ended March 31, 2022[118]. - The company has confirmed that all Directors complied with the required standards of dealings regarding securities transactions during the relevant period[112]. - The company emphasizes the importance of good corporate governance in its management structures and internal control procedures[110]. Financial Performance - Revenue for the three months ended March 31, 2022, was RMB 16,335,000, a decrease of 15.8% compared to RMB 19,384,000 for the same period in 2021[21]. - Gross profit for the same period was RMB 1,331,000, down 66.0% from RMB 3,912,000 in 2021[21]. - Loss before tax for Q1 2022 was RMB 1,795,000, compared to a profit of RMB 381,000 in Q1 2021[21]. - The company reported a loss for the period of RMB 1,491,000, a significant decline from a profit of RMB 285,000 in the previous year[21]. - Total comprehensive loss for the period was RMB 685,000, compared to a comprehensive income of RMB 1,003,000 in Q1 2021[21]. - Basic and diluted loss per share for Q1 2022 was RMB (0.004), compared to earnings per share of RMB 0.001 in Q1 2021[21]. - Other income and gains increased to RMB 3,593,000 in Q1 2022 from RMB 3,296,000 in the same period last year, reflecting a growth of 9.1%[21]. - Selling and distribution expenses decreased to RMB 1,636,000 from RMB 2,009,000, a reduction of 18.6% year-over-year[21]. - Administrative expenses rose to RMB 4,358,000, up 14.4% from RMB 3,808,000 in Q1 2021[21]. - The company experienced a foreign exchange gain of RMB 264,000 in Q1 2022, compared to a loss of RMB 236,000 in the same period last year[21]. Revenue Breakdown - Revenue from the sale of ITO film was RMB 8,079,000, down 14.3% from RMB 9,422,000 in the previous year[44]. - Revenue from Smart PDLC products was RMB 7,593,000, a decrease of 11.0% compared to RMB 8,561,000 in the same period last year[44]. - Revenue from LED Display and Projection System was RMB 0, down from RMB 964,000 in the previous year, indicating a complete cessation of this revenue stream[44]. - Domestic revenue from Mainland China was RMB 12,244,000, a decline of 30.7% from RMB 17,697,000 in the prior year[45]. - Revenue from other geographical markets increased to RMB 4,091,000, up 142.9% from RMB 1,687,000 in the same period last year[45]. Cost and Expenses - The cost of inventories sold for the three months ended March 31, 2022 was RMB 14,848,000, slightly down from RMB 15,026,000 in the same period of 2021[52]. - Employee benefit expenses for the three months ended March 31, 2022 totaled RMB 4,973,000, an increase from RMB 4,536,000 in the same period of 2021[52]. - The total tax credit for the period was RMB (304,000), compared to a tax expense of RMB 96,000 for the same period in 2021[55]. - The Group's deferred income released to profit or loss was RMB 124,000 for the three months ended March 31, 2022, compared to RMB 115,000 in the same period of 2021[47]. - The depreciation of property, plant, and equipment for the three months ended March 31, 2022 was RMB 1,997,000, down from RMB 2,654,000 in the same period of 2021[52]. - The Group's research costs for the three months ended March 31, 2022 were RMB 1,235,000, a decrease from RMB 1,778,000 in the same period of 2021[52]. Share Option Scheme - The company has adopted a Share Option Scheme allowing for the issuance of up to 10% of the total issued share capital, which amounts to 480,000,000 shares as of October 17, 2017[126]. - The maximum number of shares that can be issued to any eligible participant under the Share Option Scheme in any 12-month period is limited to 1% of the total issued shares unless approved by shareholders[132]. - The exercise price for share options must be at least the higher of the closing price on the date of grant or the average closing price for the five business days preceding the grant[139]. - The Share Option Scheme will remain in effect for ten years from October 17, 2017, expiring on the day before the tenth anniversary unless terminated earlier[140]. - The total number of outstanding share options as of March 31, 2022, was 7,790,000, with no options exercised during the period[147]. Shareholding Structure - As of March 31, 2022, Top Access Management Limited holds 324,324,325 shares, representing approximately 62.37% of the total shareholding[152]. - China Shuifa Singyes Energy Holdings Limited has an interest in a controlled corporation, also holding 324,324,325 shares, equating to 62.37%[152]. - Water Development (HK) Holdings Co., Limited, another controlled corporation, holds 324,324,325 shares, which is 62.37% of the shareholding[152]. - AMATA Limited is a beneficial owner of 40,000,000 shares, representing 7.69% of the total shareholding[154]. - Kunlun Holdings Group Limited holds 26,021,206 shares, which is 5.00% of the total shareholding[154]. - As of March 31, 2022, the total issued share capital is 520,000,000 shares[154]. - The interests and short positions of directors and chief executives have been disclosed according to the Securities and Futures Ordinance[156]. - The company has no other persons or corporations with interests in shares or underlying shares that require disclosure under the provisions of the Securities and Futures Ordinance[155]. - The percentage of shareholding is calculated based on the total issued shares as of March 31, 2022[154]. - The company maintains a register of interests as required by the Securities and Futures Ordinance[156].

Financial Performance - For the year ended December 31, 2021, the Group's revenue was RMB 131.3 million, representing a year-on-year decrease of 30.6%[21] - Revenue from ITO film sales was approximately RMB 47.8 million for the year ended December 31, 2021, representing an increase of approximately RMB 4.7 million or 10.9% from RMB 43.1 million in 2020[36] - Revenue from Smart PDLC products was approximately RMB 41.5 million for the year ended December 31, 2021, a decrease of approximately RMB 7.4 million or 15.1% from RMB 48.9 million in 2020[37] - Revenue from LED Display and Projection System was approximately RMB 11.5 million for the year ended December 31, 2021, a significant increase of approximately RMB 11.3 million or 52 times from RMB 0.2 million in 2020[41] - Revenue from other products was approximately RMB 30.4 million for the year ended December 31, 2021, representing a significant increase of approximately RMB 22.1 million or 2.7 times from RMB 8.3 million in 2020[42] - The company recorded a loss attributable to owners of approximately RMB 18.2 million for the year ended December 31, 2021, compared to a profit of approximately RMB 584,000 for the same period in 2020[43] - The company's cost of sales for the year ended December 31, 2021, was approximately RMB 106.2 million, an increase of approximately RMB 29.3 million or 38.1% from approximately RMB 76.9 million for the same period in 2020[51][54] - Gross profit increased by approximately RMB 1.4 million or 6.0%, from approximately RMB 23.6 million for the year ended December 31, 2020, to approximately RMB 25.0 million for the year ended December 31, 2021[56][60] - The gross profit margin decreased from approximately 23.5% for the year ended December 31, 2020, to approximately 19.1% for the same period in 2021, mainly due to a drop in selling prices in response to competition[56][60] 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[22] - Official bulk production of motor vehicle films was realized, establishing a foundation for entering the motor vehicle sector[24] - The market development for multimedia screen door systems for railways achieved breakthroughs in cities such as Lanzhou and Jinan[24] - Participation in public sector construction projects, including a museum in Shenyang and Guiyang Longdongbao Airport, facilitated the application of low-carbon, energy-conservative technologies[24] - The company successfully launched mass production of automotive films in 2021, laying a solid foundation for entering the automotive industry[26] - The company aims to strengthen its technology research and development to consolidate its leading position in the new material industry[29] Expenses and Financial Management - Selling and distribution expenses were approximately RMB 6.1 million for the year ended December 31, 2021, a decrease of approximately RMB 2.7 million or 30.1% from approximately RMB 8.8 million for the same period in 2020[57][61] - Administrative expenses were approximately RMB 26.0 million for the year ended December 31, 2021, an increase of approximately RMB 0.3 million or 1.2% from approximately RMB 25.7 million for the same period in 2020[58][62] - The company did not have any bank borrowings as of December 31, 2021, and plans to satisfy liquidity requirements through operating cash flows, bank borrowings, and proceeds from the listing[65][66] Risk Factors and Market Conditions - The Group's reliance on a single regional market in China poses a risk, as any decline in market demand could adversely affect operating performance[113] - The Group's entire production process is currently based in a single facility in China, which could lead to significant operational disruptions if affected by natural disasters[114] - The ITO film industry in China has seen rapid growth, but key production technologies and market share remain dominated by a few players, indicating potential competitive pressures[97] - The Smart PDLC Products market is experiencing increased competition from both established manufacturers and new entrants, leading to price competition and pressure on production costs[104] - The Group's brand and reputation are critical for sales success, and any failure to maintain these could adversely impact financial results and sustainable development[107] Corporate Governance - The Board has complied with GEM Listing Rules, maintaining at least three independent non-executive Directors, representing more than one-third of the Board[133] - The Company has adopted a code of conduct for directors' securities transactions, ensuring compliance with GEM Listing Rules[126] - The Board has received annual confirmations of independence from each independent non-executive Director, affirming their compliance with GEM Listing Rules[136] - The Company has developed and reviewed policies on corporate governance, compliance, and training for Directors and senior management[124] - The Board believes that combining the roles of Chairman and Chief Executive Officer will not impair the balance of power and authority within the Company[142] - The Company has established a structure and procedural rules for Board meetings to address major operational matters effectively[142] - The attendance of executive Directors at Board meetings was 100%, with Mr. Sun Jinli having attended four meetings before his resignation[132] - The Company encourages shareholders to express their views on corporate governance matters directly to the Board[124] Audit and Risk Management - The Audit Committee held five meetings during the year ended December 31, 2021, with three meetings attended by the external auditor to discuss the financial reporting process[157] - The Audit Committee reviewed the accounting principles and practices adopted by the Group and confirmed compliance with applicable accounting principles for the audited consolidated financial statements for the year ended December 31, 2021[159] - The effectiveness of internal controls and risk management was reviewed by the Audit Committee, covering financial, operational, and compliance controls[160] - The Company has established a Remuneration Committee to recommend overall remuneration policy and structure for all Directors and senior management, ensuring no Director determines their own remuneration[164] - The Board is responsible for directing and approving the Group's overall strategies, while management teams handle operational duties[148] - The Board has assessed and reviewed the risk management policies and internal control procedures of the Group, considering them effective and adequate[194] - The external auditor's responsibility is to form an independent opinion on the consolidated financial statements prepared by the Board[190] - The Group has engaged external independent professionals to review its risk management and internal control systems[194] Shareholder Communication and Dividend Policy - The Group did not make any material acquisitions or disposals during the year ended December 31, 2021, and has no plans for significant investments or capital assets[85] - The Directors did not recommend a final dividend for the year, maintaining a dividend payout ratio dependent on actual performance[87] - The Group has not entered into any agreements to hedge against currency risks as of December 31, 2021[91] - The Company maintains a transparent and timely disclosure policy to keep shareholders informed of its business performance and strategies[200] - The Company ensures equal access to information for all shareholders and investors through its communication policies[200]

Financial Performance - Revenue for the nine months ended September 30, 2021, increased to RMB 81,476,000, representing a 11.0% growth compared to RMB 72,953,000 in the same period of 2020[22]. - Gross profit for the nine months ended September 30, 2021, was RMB 17,795,000, a decrease of 4.7% from RMB 18,667,000 in the previous year[22]. - Profit for the period was RMB 2,167,000, down 59.0% from RMB 5,296,000 for the same period in 2020[22]. - Total comprehensive income for the nine months ended September 30, 2021, was RMB 1,635,000, a decline of 59.5% compared to RMB 4,030,000 in 2020[22]. - The company reported a basic and diluted earnings per share of RMB 0.001 for the nine months ended September 30, 2021, down from RMB 0.010 in the same period of 2020[22]. - Other income and gains for the nine months ended September 30, 2021, increased to RMB 12,719,000, compared to RMB 5,742,000 in the previous year[22]. - Selling and distribution expenses decreased to RMB 5,627,000 for the nine months ended September 30, 2021, from RMB 6,900,000 in 2020, reflecting an 18.5% reduction[22]. - The total comprehensive income attributable to equity shareholders of the company was RMB 742,000 for the nine months ended September 30, 2021, compared to RMB 4,190,000 in the same period of 2020[22]. - The profit before tax for the nine months ended September 30, 2021, was impacted by a cost of inventories sold amounting to RMB 63,681,000, an increase from RMB 54,286,000 in the same period of 2020, representing a growth of approximately 17.5%[61]. - Employee benefit expenses for the nine months ended September 30, 2021, totaled RMB 12,394,000, slightly decreased from RMB 12,966,000 in the same period of 2020, indicating a reduction of about 4.4%[61]. - Research costs for the nine months ended September 30, 2021, were RMB 6,876,000, which is comparable to RMB 6,852,000 in the same period of 2020, showing a marginal increase of 0.4%[61]. - The basic earnings per share for the nine months ended September 30, 2021, was RMB 1,274,000, a decrease from RMB 5,456,000 in the same period of 2020, indicating a decline of about 76.7%[64]. - The group recorded foreign exchange gains of RMB 979,000 for the nine months ended September 30, 2021, compared to RMB 1,116,000 in the same period of 2020, representing a decrease of approximately 12.3%[56]. - Current tax expense for the nine months ended September 30, 2021, was RMB 388,000, with no tax expense recorded in the same period of 2020[63]. - Deferred income released to profit or loss for the nine months ended September 30, 2021, was RMB 3,814,000, an increase from RMB 3,095,000 in the same period of 2020, reflecting a growth of approximately 23.2%[56]. Revenue Breakdown - Revenue from contracts with customers for the three months ended September 30, 2021, was RMB 29,304,000, representing an increase of 5.93% compared to RMB 27,658,000 for the same period in 2020[41]. - For the nine months ended September 30, 2021, total revenue from contracts with customers reached RMB 81,476,000, up 11.00% from RMB 72,953,000 in the prior year[41]. - ITO film sales contributed RMB 12,118,000 for the three months ended September 30, 2021, a significant increase of 34.93% from RMB 8,994,000 in the same period of 2020[42]. - Smart Light-adjusting Film revenue decreased to RMB 7,604,000 for the three months ended September 30, 2021, down 30.00% from RMB 10,917,000 in the previous year[42]. - The revenue from Smart Light-adjusting Glass increased to RMB 6,062,000 for the three months ended September 30, 2021, compared to RMB 1,533,000 in the same period of 2020, marking a growth of 295.00%[42]. - Domestic revenue from Mainland China accounted for RMB 27,980,000 for the three months ended September 30, 2021, which is an increase from RMB 27,658,000 in the same period of 2020[45]. - The Group's principal revenue is generated in Mainland China, with total revenue from this region for the nine months ended September 30, 2021, amounting to RMB 75,377,000, up from RMB 70,445,000 in the previous year[45]. - The Group's revenue recognition for goods transferred at a point in time was RMB 29,304,000 for the three months ended September 30, 2021, compared to RMB 27,658,000 in the same period of 2020[48]. - For the three months ended September 30, 2021, revenue from Customer A was RMB 4,418,000, while revenue from Customer B for the same period was RMB 3,385,000[53]. Market and Competition - The Group faced intense competition in a saturated domestic market, impacting gross profit despite sales growth[71]. - The Group is focusing on research and development to maintain competitiveness and diversify its product range in response to market trends[86]. - The Group's key operating subsidiary is ranked as a leading manufacturer of Smart Light-adjusting Products in the PRC by market share[81]. Corporate Governance - The board of directors includes both executive and independent non-executive members, ensuring governance and oversight[14]. - The Company has established an Audit Committee to review financial reporting processes and internal controls, consisting of three independent non-executive Directors[128]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the nine months ended September 30, 2021, and confirmed compliance with applicable accounting principles[130]. - The Company has adopted a code of conduct for directors' securities transactions, ensuring compliance with GEM Listing Rules[126]. - The Company recognizes the importance of good corporate governance and has complied with applicable code provisions during the Relevant Period[120]. - The roles of Chairman and Chief Executive Officer were combined under Mr. Zhang Chao, with measures in place to maintain the balance of power and authority within the Company[122]. Share Options and Capital Structure - The total number of Shares available under the Share Option Scheme is capped at 10% of the total issued share capital as of 17 October 2017, which amounts to 480,000,000 Shares[139]. - As of September 30, 2021, a total of 7,790,000 share options remain unexercised, down from 8,590,000 at the beginning of the year, reflecting a forfeiture of 800,000 options during the period[159]. - The exercise price for the share options is set at HK$1.16 per share[159]. - The company’s share options plan allows for the exercise of options even after the plan is terminated, as long as they were granted before termination[155]. - The maximum number of Shares that can be issued to any Eligible Person in any 12-month period shall not exceed 1% of the number of Shares in issue[144]. - The Share Option Scheme will remain in force for ten years from 17 October 2017, expiring on the day before the tenth anniversary unless terminated earlier[151]. Use of Proceeds - Net proceeds from the listing amounted to HK$ 93.5 million, which will be utilized for various business strategies including overseas expansion and R&D[104]. - Actual use of net proceeds includes HK$ 9.8 million for overseas business expansion and HK$ 21.1 million for R&D of new materials and products[110]. - The actual use of proceeds was lower than planned due to delays in automation and installation of production lines, exacerbated by the COVID-19 pandemic[113]. - As of September 30, 2021, approximately HK$77.1 million of the net proceeds from the Share Offer had been utilized, with the unused net proceeds deposited in licensed banks[112]. Employee Information - The total headcount as of September 30, 2021, was 150 full-time employees, with a remuneration package that includes basic salary, allowances, and bonuses[115]. Shareholding Structure - Top Access Management Limited holds 324,324,325 shares, representing approximately 62.37% of the total shareholding[164]. - AMATA Limited and Mr. Luo Jingxi each hold 40,000,000 shares, accounting for 7.69% of the total shareholding[166]. - Kunlun Holdings Group Limited holds 26,021,206 shares, which is 5.00% of the total shareholding[166]. - Water Development (HK) Holdings Co., Limited has a beneficial interest in 1,687,008,585 shares of Shuifa Singyes, representing approximately 66.92% of its issued share capital[166]. - The total number of shares issued as of September 30, 2021, was 520,000,000[171]. - Mr. Liu Hongwei holds 202,038,750 shares of Shuifa Singyes, representing approximately 8.01% of the total registered share capital[175]. - The total interest held by Mr. Liu Hongwei, including beneficial interest, amounts to 203,538,750 shares, or 8.07% of the total[175]. Compliance and Non-competition - Shuifa Singyes has confirmed compliance with the Deed of Non-competition during the nine months ended September 30, 2021[187]. - No business interests that compete with the Group's business were reported by Directors or controlling shareholders during the nine months ended September 30, 2021[188]. - The controlling shareholder, Shui Fa Xing Ye, has confirmed compliance with the non-competition agreement as of September 30, 2021, and up to the report date[189]. - No directors or controlling shareholders have any competing business interests or conflicts of interest with the group as of September 30, 2021[190].

[Corporate Information](index=4&type=section&id=CORPORATE%20INFORMATION) This section outlines the company's core corporate data, including board composition, committees, and key advisors - The report details core corporate information, including the board, committees, and advisors; notably, **Mr. Du Peng and Mr. Nie Yuanzhou were appointed as executive directors on January 25, 2021**, following the resignation of Mr. Sun Jinli and Mr. Tang Liwen[12](index=12&type=chunk) [Corporate Governance](index=7&type=section&id=CORPORATE%20GOVERNANCE) The company details its corporate governance practices, noting compliance with the code despite a deviation in the roles of Chairman and CEO [Corporate Governance Overview](index=7&type=section&id=CORPORATE%20GOVERNANCE%20OVERVIEW) The company reports compliance with the Corporate Governance Code, except for the deviation of combining the Chairman and CEO roles - **Mr. Zhang Chao has served as both Chairman and CEO since January 25, 2021**, a deviation from code provision A.2.1 which requires these roles to be separate[24](index=24&type=chunk)[26](index=26&type=chunk) - The Audit Committee, composed of three independent non-executive directors, has reviewed the unaudited interim financial statements and found them compliant with accounting principles and adequately disclosed[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) - The company and its subsidiaries **did not purchase, sell, or redeem any of the company's listed securities** during the reporting period[30](index=30&type=chunk) [Other Information](index=9&type=section&id=OTHER%20INFORMATION) This section discloses details on the share option scheme, major shareholder interests, director holdings, and non-compete undertakings [Share Option Scheme](index=9&type=section&id=SHARE%20OPTION%20SCHEME) The company details its share option scheme, noting no new grants or exercises during the period, with some options forfeited upon employee departure - The share option scheme, adopted on October 17, 2017 for a 10-year period, aims to incentivize contributions from eligible participants[38](index=38&type=chunk)[39](index=39&type=chunk)[58](index=58&type=chunk) Changes in Share Option Scheme in H1 2021 | Item | Number ('000) | | :--- | :--- | | **Outstanding at January 1, 2021** | **8,590** | | Granted during the period | – | | Exercised during the period | – | | Forfeited during the period | (800) | | Lapsed during the period | – | | **Outstanding at June 30, 2021** | **7,790** | [Interests and Short Positions of Substantial Shareholders](index=14&type=section&id=INTERESTS%20AND%20SHORT%20POSITIONS%20OF%20SUBSTANTIAL%20SHAREHOLDERS) This section discloses substantial shareholders with interests of 5% or more as of June 30, 2021, led by Top Access Management Limited Substantial Shareholders' Holdings (as at June 30, 2021) | Shareholder Name | Number of Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | | Top Access Management Limited | 324,324,325 | 62.37% | | China Shuifa Singyes Energy Holdings Limited | 324,324,325 | 62.37% | | Shuifa Group Co, Ltd | 324,324,325 | 62.37% | | AMATA Limited | 40,000,000 | 7.69% | | Kunlun Holding Group Co, Ltd | 26,021,206 | 5.00% | [Directors' and Chief Executive's Interests](index=17&type=section&id=DIRECTORS'%20AND%20CHIEF%20EXECUTIVE'S%20INTERESTS) This section discloses director and chief executive interests in the company and its associated corporations, including a notable holding by a non-executive director - **Non-executive Director Liu Hongwei is deemed interested in 203,538,750 shares (8.07%)** of the intermediate holding company, Shuifa Singyes (HKEX: 750)[82](index=82&type=chunk)[88](index=88&type=chunk) [Interest in Competing Businesses](index=19&type=section&id=INTEREST%20IN%20COMPETING%20BUSINESSES) The company confirms its controlling shareholder has complied with the non-compete undertaking and no directors engaged in competing businesses - The controlling shareholder, Shuifa Singyes, confirmed its compliance with the non-compete undertaking dated June 23, 2017, for the reporting period[92](index=92&type=chunk)[93](index=93&type=chunk) [Management Discussion and Analysis](index=20&type=section&id=MANAGEMENT%20DISCUSSION%20AND%20ANALYSIS) This section provides a comprehensive review of the Group's business performance, financial results, and future outlook [Business Review](index=20&type=section&id=BUSINESS%20REVIEW) The Group's sales grew in H1 2021, but intense price competition eroded gross profit, leading to a significant drop in net profit Revenue Performance by Product Line in H1 2021 (RMB million) | Product Line | H1 2021 Revenue | H1 2020 Revenue | YoY Change | | :--- | :--- | :--- | :--- | | ITO conductive film | 25.1 | 21.5 | +16.4% | | Smart dimming film | 13.0 | 14.2 | -8.5% | | Smart dimming glass | 4.3 | 5.0 | -13.9% | | LED glass | 6.7 | 0 | N/A | | Subway media display | 2.9 | 3.1 | -7.4% | - Despite a **15.2% YoY revenue increase**, profit attributable to company owners **plunged 83.1%** to RMB 0.4 million from RMB 2.5 million in the prior period[111](index=111&type=chunk) - The profit decline was primarily driven by a swing in financial asset impairment, from a **RMB 5.6 million reversal in H1 2020 to a RMB 2.8 million loss in H1 2021**[111](index=111&type=chunk) [Outlook and Prospects](index=22&type=section&id=OUTLOOK%20AND%20PROSPECTS) Management anticipates continued market competition, focusing on product diversification while maintaining a cautious approach to expansion and R&D - The Group's strategy to counter market challenges is to enrich and diversify its product portfolio[112](index=112&type=chunk)[115](index=115&type=chunk) - The Group will maintain a prudent and stable strategy, remaining cautious about production line expansion and new R&D projects[113](index=113&type=chunk) [Financial Review](index=23&type=section&id=FINANCIAL%20REVIEW) Revenue grew 15.2% to RMB 52.2 million, but gross margin fell to 20.1% due to price competition, while the gearing ratio remained stable Key Financial Indicators for H1 2021 | Indicator | H1 2021 | H1 2020 | Change | | :--- | :--- | :--- | :--- | | Revenue | RMB 52.2 million | RMB 45.3 million | +15.2% | | Gross Profit | RMB 10.5 million | RMB 11.7 million | -10.5% | | Gross Margin | 20.1% | 25.8% | -5.7pp | | Administrative Expenses | RMB 10.3 million | RMB 12.2 million | -15.8% | - As of June 30, 2021, the Group had **no bank borrowings** and maintained a stable gearing ratio of **32.5%**[127](index=127&type=chunk)[134](index=134&type=chunk) - The company faces a customer lawsuit over product quality, resulting in a **RMB 10 million freeze on bank cash**, though management has not made a provision, citing a strong defense[136](index=136&type=chunk)[140](index=140&type=chunk) - Of the HK$93.5 million net proceeds from the 2017 listing, **HK$77.1 million had been utilized** by June 30, 2021, with some production line plans delayed[155](index=155&type=chunk)[156](index=156&type=chunk) [Review Report](index=29&type=section&id=REVIEW%20REPORT) This section contains the independent auditor's review report on the interim financial information [Auditor's Review Report](index=29&type=section&id=AUDITOR'S%20REVIEW%20REPORT) Independent auditor KPMG issued a standard review conclusion, stating no issues were found to suggest the interim financials were not prepared in accordance with IAS 34 - The auditor, KPMG, conducted its review in accordance with Hong Kong Standard on Review Engagements 2410[169](index=169&type=chunk) - The review conclusion provides a standard negative assurance, indicating no matters were found suggesting non-compliance in the preparation of the financial report[170](index=170&type=chunk) [Interim Condensed Financial Report](index=31&type=section&id=INTERIM%20CONDENSED%20FINANCIAL%20REPORT) This section presents the unaudited interim condensed consolidated financial statements, including the income statement, balance sheet, cash flow statement, and related notes [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=31&type=section&id=Condensed%20consolidated%20statement%20of%20profit%20or%20loss%20and%20other%20comprehensive%20income) Revenue for H1 2021 grew 15.2% to RMB 52.2 million, but profit attributable to equity holders fell 83.1% to RMB 0.4 million due to lower gross profit and other factors Summary of Income Statement for H1 2021 (RMB '000) | Item | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Revenue | 52,172 | 45,295 | | Gross Profit | 10,470 | 11,701 | | Profit before tax | 1,263 | 2,514 | | Profit for the period | 1,097 | 2,411 | | Profit attributable to equity holders of the Company | 422 | 2,497 | | Basic earnings per share (RMB) | 0.001 | 0.005 | [Condensed Consolidated Statement of Financial Position](index=33&type=section&id=Condensed%20consolidated%20statement%20of%20financial%20position) As of June 30, 2021, the company's net assets remained stable at RMB 241.5 million, with net current assets of RMB 152.7 million indicating healthy short-term liquidity Summary of Statement of Financial Position (RMB '000) | Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Non-current assets | 103,435 | 96,357 | | Current assets | 216,479 | 219,700 | | Current liabilities | 63,782 | 65,448 | | Non-current liabilities | 14,647 | 9,157 | | **Net Assets** | **241,485** | **241,452** | [Condensed Consolidated Statement of Cash Flows](index=36&type=section&id=Condensed%20consolidated%20statement%20of%20cash%20flows) Operating activities generated a net cash inflow of RMB 4.4 million in H1 2021, a significant improvement, though overall cash decreased due to investment and financing outflows Summary of Cash Flow Statement for H1 2021 (RMB '000) | Item | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Net cash from/(used in) operating activities | 4,432 | (12,040) | | Net cash (used in)/from investing activities | (2,462) | 3,220 | | Net cash (used in)/from financing activities | (3,066) | 1,285 | | **Net decrease in cash and cash equivalents** | **(1,096)** | **(7,535)** | | Cash and cash equivalents at end of period | 7,191 | 19,429 | [Notes to Unaudited Interim Condensed Financial Report](index=38&type=section&id=Notes%20to%20unaudited%20interim%20condensed%20financial%20report) The notes provide supplementary details, highlighting revenue concentration in mainland China, aging trade receivables, and the acquisition of a subsidiary - Revenue is predominantly generated from Mainland China, accounting for **approximately 90.8%** of the total[214](index=214&type=chunk) - Net trade and bills receivables stood at RMB 149 million, with **approximately 89% (RMB 133 million) aged over 6 months**, indicating elevated credit risk; an impairment loss of RMB 2.8 million was recognized[254](index=254&type=chunk)[259](index=259&type=chunk) - The Group acquired a 60% stake in Sishui Yixin Renewable Resources for zero consideration on February 8, 2021, recognizing **goodwill of approximately RMB 0.7 million** due to the target's net liabilities[321](index=321&type=chunk)[323](index=323&type=chunk)

2021 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only after due and careful consideration. Given that the companies listed on GEM are generally s ...

(Incorporated in the Bermuda with limited liability) （於百慕達註冊成立的有限公司） Annual Report 年度報告 2020 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should be aware of the potential risks of investing in such companies and should make the decision to invest only aft ...

Financial Performance - China Singyes New Materials Holdings Limited reported a revenue of HKD 150 million for Q3 2020, representing a 10% increase compared to the same period last year[12]. - The company achieved a gross profit margin of 25% in Q3 2020, up from 22% in Q3 2019, indicating improved operational efficiency[12]. - The company reported a net profit of HKD 20 million for Q3 2020, a significant increase from HKD 10 million in Q3 2019, reflecting strong financial performance[12]. - Revenue for the nine months ended September 30, 2020, was RMB 72,953,000, a decrease of 31.6% compared to RMB 106,661,000 for the same period in 2019[20]. - Gross profit for the nine months ended September 30, 2020, was RMB 18,667,000, down 54.5% from RMB 41,096,000 in the previous year[20]. - Profit for the period was RMB 5,296,000, representing a decline of 49.8% compared to RMB 10,549,000 for the same period in 2019[20]. - Total comprehensive income for the nine months ended September 30, 2020, was RMB 4,030,000, down 66.9% from RMB 12,230,000 in 2019[20]. - Basic and diluted earnings per share for the nine months ended September 30, 2020, were RMB 0.010, a decrease of 50% from RMB 0.020 in the same period of 2019[20]. Revenue Breakdown - For the three months ended September 30, 2020, the revenue from contracts with customers was RMB 27,658,000, a decrease of 35.3% compared to RMB 42,691,000 for the same period in 2019[37]. - Sales of ITO film for the three months ended September 30, 2020, were RMB 8,994,000, a decline of 16.8% from RMB 10,813,000 in 2019[41]. - Sales of smart light-adjusting film for the nine months ended September 30, 2020, were RMB 25,145,000, down 33.1% from RMB 37,573,000 in the same period in 2019[41]. - Revenue from ITO film sales for the nine months ended 30 September 2020 was RMB 30,532,000, a decrease of RMB 7,288,000 or 19.3% compared to RMB 37,820,000 for the same period in 2019[78]. - Revenue from Smart Light-adjusting Film sales for the nine months ended 30 September 2020 was RMB 25,145,000, a decrease of RMB 12,428,000 or 33.1% from RMB 37,573,000 for the same period in 2019[83]. - Revenue from Smart Light-adjusting Glass sales for the nine months ended 30 September 2020 was RMB 6,510,000, a decrease of RMB 2,845,000 or 30.4% from RMB 9,355,000 for the same period in 2019[84]. - Revenue from Smart Light-adjusting Projection System sales for the nine months ended 30 September 2020 was RMB 129,000, compared to RMB 140,000 for the same period in 2019[85]. - Revenue from other products for the nine months ended September 30, 2020, was RMB 10,637,000, a decrease of RMB 2,442,000 or 18.7% from RMB 13,079,000 for the same period in 2019[90]. Cost Management - Operational costs have been reduced by 5% due to improved supply chain management and cost control measures implemented in Q3 2020[12]. - Selling and distribution expenses decreased to RMB 6,900,000 for the nine months ended September 30, 2020, down 6.6% from RMB 7,391,000 in the previous year[20]. - Administrative expenses remained stable at RMB 17,602,000 for the nine months ended September 30, 2020, compared to RMB 17,490,000 in 2019[20]. - The Group's profit before tax for the three months ended September 30, 2020, was impacted by a cost of inventories sold amounting to RMB 20,692,000, compared to RMB 18,749,000 in 2019[63]. - The Group's employee benefit expense for the three months ended September 30, 2020, was RMB 4,289,000, compared to RMB 4,395,000 in 2019[63]. Future Outlook - Future guidance indicates an expected revenue growth of 15% for the next quarter, driven by increased demand in the renewable energy sector[12]. - The company has set a target to expand its market presence in Southeast Asia, aiming for a 20% market share by 2023[12]. - The company plans to invest HKD 30 million in R&D for new materials technology in the upcoming fiscal year[12]. - The Group is cautiously expanding production lines and conducting R&D projects to meet expected future demand as the industry recovers from the COVID-19 crisis[92]. Shareholder Information - As of September 30, 2020, Top Access Management Limited holds 324,324,325 shares, representing approximately 62.37% of the shareholding[164]. - Water Development (HK) Holdings Co., Limited is the legal and beneficial owner of 1,687,008,585 shares of Shuifa Singyes, accounting for approximately 66.92% of its issued share capital[168]. - AMATA Limited holds 40,000,000 shares, which is about 7.69% of the total shareholding[164]. - Kunlun Holdings Group Limited owns 26,021,206 shares, representing 5.00% of the total[164]. - The percentage of shareholding is calculated based on 520,000,000 shares in issue as of 30 September 2020[168]. Corporate Governance - The Audit Committee was established on July 21, 2017, in compliance with GEM Listing Rules, with primary duties including reviewing financial reporting processes and internal controls[135]. - The Audit Committee consists of three independent non-executive Directors, with Ms. Pan Jianli serving as the chairperson[136]. - The Audit Committee reviewed the accounting principles and practices for the nine months ended September 30, 2020, and confirmed compliance with applicable accounting principles[137]. Events and Changes - The company did not recommend the payment of a dividend for the nine months ended September 30, 2020[121]. - There were no significant events after the end of the reporting period[71]. - The company has not redeemed or purchased any of its listed securities during the relevant period[129].