Zhejiang Chang’an Renheng Technology Co., Ltd.* 浙江長安仁恒科技股份有限公司 （於中華人民共和國註冊成立之股份有限公司） （股份代號：8139） 截至二零二三年九月三十日止九個月之 第三季度業績公告 香港聯合交易所有限公司（「聯交所」）GEM之特色 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上市的公司一般為中小型公司，在GEM買賣的證券可能會較於聯交所主板買 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。 香港交易及結算所有限公司及聯交所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。 本公告的資料乃遵照聯交所的創業板證券上市規則（「創業板上市規則」）而刊載，旨在提 供有關浙江長安仁恒科技股份有限公司（「本公司」，及其附屬公司，統稱「本集團」或「我 們」）的 ...

Financial Performance - Revenue increased by 11.4% to approximately RMB 75,830,000 compared to RMB 68,065,000 in the previous year[6] - Gross profit rose by 22.4% to approximately RMB 30,177,000, with a gross margin of 39.8% compared to 36.2% in the previous year[6] - Profit attributable to equity holders was approximately RMB 4,028,000, a turnaround from a loss of RMB 1,005,000 in the previous year[6] - Basic earnings per share were approximately RMB 0.105, compared to a loss per share of RMB 0.026 in the previous year[6] - The company reported a profit attributable to equity holders of RMB 4,028,481 for the six months ended June 30, 2023, compared to a loss of RMB (1,004,912) for the same period in 2022, indicating a significant turnaround in performance[38] - Basic earnings per share for the six months ended June 30, 2023, was RMB 0.105, compared to a loss per share of RMB (0.026) in the same period of 2022[38] Assets and Liabilities - Total assets as of June 30, 2023, were RMB 279,635,724, slightly up from RMB 278,152,459 at the end of 2022[9] - Total liabilities decreased to RMB 160,480,232 from RMB 163,025,448 at the end of 2022[9] - Non-current assets increased to RMB 124,113,819 from RMB 118,817,267 at the end of 2022[8] - The company’s total assets as of June 30, 2023, were RMB 119,155,492, reflecting growth from RMB 115,127,011 at the beginning of the year[11] - The company’s retained earnings increased to RMB 30,696,947 as of June 30, 2023, from RMB 26,668,466 at the beginning of the year[11] - The company’s trade payables decreased to RMB 24,169,911 as of June 30, 2023, from RMB 24,664,261 as of December 31, 2022[47] Cash Flow - The net cash generated from operating activities was RMB 2,126,229, a significant improvement from a net cash used of RMB (13,310,390) in the first half of 2022[13] - Cash and cash equivalents were RMB 18,558,337, down from RMB 19,355,608 at the end of 2022[8] - The cash and cash equivalents at the end of the period were RMB 18,558,337, down from RMB 19,355,608 at the beginning of the period[13] - The group's cash and cash equivalents decreased by approximately RMB 798,000, with net cash inflow from operating activities of about RMB 2,126,000 and net cash outflow from investing activities of approximately RMB 4,034,000[70] Research and Development - Research and development expenses increased to RMB 5,343,483 from RMB 4,903,098 in the previous year[7] - The company has undertaken the development of two provincial-level new products and has applied for six patents during the reporting period[49] - The company established a key laboratory for the development and application of critical mineral materials in collaboration with Wuhan University of Technology, focusing on strategic mineral resources[49] - Research and development expenses increased by approximately RMB 440,000 or 9.0% to about RMB 5,343,000, mainly due to increased work on environmental research projects with Jilin Petrochemical Design Institute[63] Revenue Breakdown - Revenue from organic bentonite products was RMB 50,022,734, a 31.2% increase from RMB 38,108,519 in the same period of 2022[27] - Revenue from paper chemicals decreased by approximately RMB 6,626,000 or 30.6% to about RMB 15,021,000 for the six months ended June 30, 2023, primarily due to a sales volume decline of about 28.8%[51] - Organic bentonite revenue increased by approximately RMB 11,915,000 or 31.3% to about RMB 50,023,000 for the six months ended June 30, 2023, driven by increased sales volume[53] - Inorganic gel revenue rose by approximately RMB 3,566,000 or 66.8% to about RMB 8,907,000 for the six months ended June 30, 2023, also due to increased sales volume[53] Expenses - Total sales cost increased by approximately RMB 2,232,000 or 5.1% to about RMB 45,652,000 for the six months ended June 30, 2023[55] - The interest expenses for the period were RMB (3,484,126), up from RMB (2,979,885) in the previous year, reflecting increased borrowing costs[29] - The company reported a tax expense of RMB (174,996) for the six months ended June 30, 2023, compared to a tax credit of RMB 371,044 in the same period of 2022[35] Corporate Governance - The audit committee reviewed the unaudited consolidated financial statements for the six months ended June 30, 2023, and confirmed compliance with current accounting standards and GEM listing rules[107] - The company has adopted corporate governance measures to enhance internal control systems and ensure compliance with applicable codes[101] Dividends - The board of directors decided not to declare any interim dividend for the six months ended June 30, 2023[6] - The company did not declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[40] - The board resolved not to declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[100] Shareholding - As of June 30, 2023, Mr. Zhang Youlian holds 19,220,600 shares, representing approximately 50.05% of the issued share capital[88] - Ms. Yu Hua owns 3,576,000 shares, accounting for 9.31% of the issued share capital[91] - The company has maintained at least 25% of its issued share capital held by public shareholders during the reporting period[96] Future Outlook - The group believes it has sufficient financial resources to continue operations for the foreseeable future[80] - The company will issue its interim report for the six months ending June 30, 2023, to shareholders at an appropriate time[109] - The interim report will be available on the company's website and the Hong Kong Stock Exchange website[109] Other Information - The company has no significant contingent liabilities, legal proceedings, or potential lawsuits as of June 30, 2023[77] - There were no major acquisitions or disposals during the six months ended June 30, 2023[79] - There were no related party transactions or continuous related party transactions during the reporting period[94] - There were no significant events occurring after the reporting period as of the report date[108]

Zhejiang Chang’an Renheng Technology Co., Ltd.* 浙江長安仁恒科技股份有限公司 （於中華人民共和國註冊成立之股份有限公司） （股份代號：8139） 截至二零二三年六月三十日止六個月之 中期業績公告 香港聯合交易所有限公司（「聯交所」）GEM之特色 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上市的公司一般為中小型公司，在GEM買賣的證券可能會較於聯交所主板買 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。 香港交易及結算所有限公司及聯交所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。 本公告的資料乃遵照聯交所的GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有 關浙江長安仁恒科技股份有限公司（「本公司」，及其附屬公司，統稱「本集團」或「我們」） 的資料 ...

Financial Performance - Revenue increased by 16.3% to approximately RMB 33,477,000 compared to RMB 28,793,000 in the same period last year[6] - Gross profit rose by 38.1% to approximately RMB 13,330,000, with a gross margin of 39.8% compared to 33.5% in the previous year[6] - Loss attributable to equity holders decreased by 83.6% to approximately RMB 283,000 from RMB 1,730,000 in the prior year[6] - Basic loss per share reduced by 80.0% to approximately RMB 0.01, down from RMB 0.05 in the same period last year[6] - Total comprehensive loss for the period attributable to equity holders was RMB 282,745, significantly lower than RMB 1,730,073 in the same period last year[7] - For the three months ended March 31, 2023, the company's revenue was approximately RMB 33,477,469, an increase of about RMB 4,684,000 or 16.3% compared to RMB 28,793,480 for the same period in 2022[28] - The gross profit for the same period was approximately RMB 13,330,000, representing an increase of about RMB 3,677,000 or 38.1% from RMB 9,563,000 in the previous year[30] - The company's loss attributable to equity holders for the three months ended March 31, 2023, was approximately RMB 282,745, a decrease of about RMB 1,447,000 or 83.6% from RMB 1,730,073 in the same period of 2022[31] Research and Development - Research and development expenses increased to RMB 2,593,939 from RMB 1,976,500 year-on-year[7] - Research and development expenses increased by approximately 31.2% to about RMB 2,594,000 for the three months ended March 31, 2023, compared to RMB 1,977,000 for the same period in 2022[30] - The company has undertaken two provincial-level new product development projects and applied for six patents during the reporting period[27] - The company has established a key laboratory for the development and application of critical mineral materials in collaboration with Wuhan University of Technology[27] - The company continues to focus on promoting organic bentonite for paint and coatings, with significant sales and profit growth in this area[27] - The company is developing high-dispersion bentonite for producing high solid content and solvent-free coatings, achieving a solid content of up to 70%[33] - The new coatings have low viscosity and do not require organic solvents for dilution, aligning with green coating standards to control VOC emissions from the source[33] Corporate Governance - The company has not engaged in any related party transactions or continuous related party transactions during the reporting period[44] - The board is committed to high standards of corporate governance and aims to create value for shareholders while ensuring compliance with local and international standards[48] - The company has established an audit committee with three independent non-executive directors to oversee financial reporting and internal controls[53] - The audit committee reviewed the unaudited financial report for the three months ending March 31, 2023, and confirmed compliance with current accounting standards and GEM listing rules[53] - The company has adopted a standard code for regulating directors' securities transactions, confirming full compliance by all directors during the reporting period[51] - The chairman and CEO roles are held by the same individual, Zhang Youlian, which the board believes provides strong leadership and effective long-term strategy implementation[50] Operational Developments - The company continues to focus on the development and production of bentonite-based fine chemicals, indicating ongoing investment in product innovation[10] - Distribution costs for the three months ended March 31, 2023, were approximately RMB 4,642,000, an increase of about RMB 815,000 or 21.3% from RMB 3,827,000 in the previous year[30] - Administrative expenses decreased by approximately RMB 315,000 or 6.5% to about RMB 4,568,000 for the three months ended March 31, 2023, compared to RMB 4,883,000 in the same period of 2022[30] - In 2023, the company will advance the construction of a project with an annual production capacity of 200,000 tons of special mortar putty, which has already received approval[36] - The special mortar project aims to enhance production technology and improve outdated processes, ensuring stable and reliable quality through strict control of raw materials and mixing[36] - The company is leveraging its unique bentonite resources to assist paper companies in achieving sustainable development through resource utilization and environmental protection[36] - The new bentonite product can significantly reduce production costs for paper manufacturers by allowing them to use more fillers and less pulp[36] Shareholder Information - As of March 31, 2023, Mr. Zhang Youlian holds 19,220,600 shares, representing approximately 50.05% of the issued share capital[38] - Ms. Yu Hua is a major shareholder with 3,576,000 shares, accounting for approximately 9.31% of the issued share capital[42] Compliance and Reporting - The financial statements were prepared in accordance with International Financial Reporting Standards, ensuring compliance and transparency[15] - There are no significant post-reporting period events as of the report date[55]

Zhejiang Chang’an Renheng Technology Co., Ltd.* 浙江長安仁恒科技股份有限公司 （於中華人民共和國註冊成立之股份有限公司） （股份代號：8139） 截至二零二三年三月三十一日止三個月之 第一季度業績公告 香港聯合交易所有限公司（「聯交所」）GEM之特色 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聯交所主板買 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。 香港交易及結算所有限公司及聯交所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。 本公告的資料乃遵照聯交所的GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供 有關浙江長安仁恒科技股份有限公司（「本公司」，及其附屬公司，通稱「本集團」或「我 們」）的 ...

Financial Performance - The company reported a revenue of RMB 150.82 million for the year ended December 31, 2022, representing a 4.4% increase from RMB 144.40 million in 2021[10]. - The net profit attributable to equity holders was RMB 1.42 million, a decrease of 80.9% from RMB 7.44 million in the previous year[10]. - The overall gross profit margin decreased to 36.7%, down 4.9 percentage points from 41.6% in the prior year[15]. - Basic earnings per share were RMB 0.04, a decline of 78.9% compared to RMB 0.19 in the previous year[10]. - The total revenue for 2022 was approximately RMB 150,817,000, compared to RMB 144,398,000 in 2021[26]. - Gross profit decreased from approximately RMB 60,042,000 in 2021 to approximately RMB 55,290,000 in 2022, a decline of about RMB 4,752,000 or 7.9%[35]. Revenue Breakdown - In 2022, the company's revenue from paper chemicals increased by approximately RMB 19,314,000 or 91.5%, from RMB 21,118,000 in 2021 to RMB 40,432,000[27]. - Revenue from organic bentonite decreased by approximately RMB 8,488,000 or 9.0%, from RMB 94,664,000 in 2021 to RMB 86,176,000 in 2022, due to a decline in both sales volume and price[27]. - The inorganic gel revenue decreased by approximately RMB 4,685,000 or 20.1%, from RMB 23,255,000 in 2021 to RMB 18,570,000 in 2022, attributed to reduced sales volume and price[29]. Cost and Expenses - The total cost of sales increased from approximately RMB 84,356,000 in 2021 to approximately RMB 95,527,000 in 2022, representing a growth of about RMB 11,171,000 or 13.2%[30]. - The cost of raw materials and consumables rose from approximately RMB 60,063,000 in 2021 to approximately RMB 69,257,000 in 2022, an increase of about RMB 9,194,000 or 15.3%[31]. - Distribution costs increased from approximately RMB 16,722,000 in 2021 to approximately RMB 20,305,000 in 2022, an increase of about RMB 3,583,000 or 21.4%[36]. - Administrative expenses decreased from approximately RMB 21,280,000 in 2021 to approximately RMB 16,813,000 in 2022, a reduction of about RMB 4,467,000 or 21.0%[37]. - R&D expenses slightly decreased from approximately RMB 10,698,000 in 2021 to approximately RMB 10,613,000 in 2022, a decrease of about RMB 85,000 or 0.8%[39]. Financial Ratios - The current ratio improved by 11.1% to 1.20 from 1.08 in 2021[10]. - The quick ratio increased by 17.5% to 0.74 from 0.63 in the previous year[10]. - The debt-to-equity ratio rose to 87.4%, an increase of 12.4 percentage points from 75.0% in 2021[10]. - The average inventory turnover days increased from 221 days in 2021 to 229 days in 2022, primarily due to an increase in average inventory[51]. - The average trade receivables turnover days improved from 161 days in 2021 to 157 days in 2022, attributed to increased sales[57]. Research and Development - The company invested RMB 10,613,000 in research and development in 2022, focusing on new product development and applying for six patents[21]. - The company aims to develop high-suspension nano inorganic gels for high-end water-based coatings, aligning with national policies for green development[17]. - The company has applied for patents for high-dispersion bentonite used in high solid content and solvent-free coatings[75]. Corporate Governance - The company has adopted a corporate governance code to enhance internal control systems and ensure high standards of governance, aiming to create value for shareholders[101]. - The board consists of seven members, including three executive directors, one non-executive director, and three independent non-executive directors, ensuring a balanced composition for effective independent judgment[104]. - The company has complied with all applicable provisions of the corporate governance code during the review period, with some deviations noted regarding the separation of roles between the chairman and CEO[101]. - The board has established three committees: audit, remuneration, and nomination, to monitor specific areas of the company's operations[118]. Shareholder Information - The company reported a retained profit of approximately RMB 68,057,000 as of December 31, 2022, compared to RMB 69,100,000 as of December 31, 2021[178]. - The company did not declare any final dividends for the fiscal year ending December 31, 2022, consistent with the previous year[157]. - The company has adopted a dividend policy that considers financial performance, cash flow, and overall business conditions before declaring dividends[160]. Environmental and Social Responsibility - The company has implemented various green office measures to promote environmental sustainability, adhering to the principles of Reduce, Recycle, and Reuse[164]. - The group aims to transition from traditional coatings to green coatings, focusing on reducing volatile organic compound (VOC) emissions[75]. - The company has not made any charitable donations during the review year, consistent with the previous year[180]. Risk Management - The internal control system is designed to ensure assets are not misappropriated and to manage operational risks[135]. - The risk management framework includes identifying significant risks and assessing their impact on the business[136]. - The company strictly adheres to anti-corruption laws and has a zero-tolerance policy for unethical business conduct[140].

Zhejiang Chang’an Renheng Technology Co., Ltd.* 浙江長安仁恒科技股份有限公司 （於中華人民共和國註冊成立之股份有限公司） （股份代號：8139） 截至二零二二年十二月三十一日止年度的 全年業績公告 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM的定位，乃為相比起其他在聯交所上市的公司帶有較高投資風險的中小型公司提供 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上市的公司一般為中小型公司，在GEM買賣的證券可能會較於聯交所主板買 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。 香港交易及結算所有限公司及聯交所對本公告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因倚賴該等 內容而引致的任何損失承擔任何責任。 本公告的資料乃遵照聯交所的GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供 有關浙江長安仁恒科技股份有限公司（「本公司」，及其附屬公司，統稱「本集團」）的資 料；本公司的董事（ ...

Financial Performance - Revenue decreased by 0.3% to approximately RMB 110,137,000 compared to RMB 110,428,000 in the previous year[6] - Gross profit decreased by 20.1% to approximately RMB 38,060,000, with a gross margin of 34.6% (previous year: 43.1%) [6] - The company reported a loss attributable to equity holders of approximately RMB 363,000, compared to a profit of RMB 10,410,000 in the previous year[6] - Basic loss per share was approximately RMB 0.01, down from basic earnings of RMB 0.27 per share in the previous year[6] - Operating profit for the nine months was RMB 4,630,274, a decrease from RMB 16,327,190 in the previous year[7] - The company’s total comprehensive loss for the period was RMB 362,655, compared to a total comprehensive income of RMB 10,410,437 in the previous year[8] Dividend Policy - The board of directors resolved not to declare any interim dividend for the nine months ended September 30, 2022, consistent with the previous year[6] - The company did not declare any interim dividends for the nine months ended September 30, 2022, consistent with the previous year[24] Research and Development - Research and development expenses for the nine months increased to RMB 7,636,134 from RMB 6,835,888 in the previous year[7] - R&D expenses increased from approximately RMB 6,836,000 for the nine months ended September 30, 2021, to approximately RMB 7,636,000 for the same period in 2022, reflecting an increase of RMB 800,000 or 11.7% due to increased work on environmental R&D projects with Jilin Petrochemical Design Institute[29] - The company aims to focus on the development of high-end water-based bentonite for application in water-based coatings, responding to the growing emphasis on environmentally friendly products[30] - The company continues to focus on promoting organoclay for paint and coatings, with significant growth in sales and profits for this product line[26] - The company is developing high-end water-based organoclay for environmentally friendly coatings and has received market recognition for its products[26] - The company will continue to develop new products, including high-performance flame-retardant composites based on non-metallic minerals in collaboration with Jiangnan University[32] Taxation - The company continues to benefit from tax incentives as a high-tech enterprise, with a tax rate of 15% for the next three years[21] - The company recorded a current tax expense of RMB 170,503 for the nine months ended September 30, 2022, compared to a tax expense of RMB (1,676,348) for the same period in 2021[21] Shareholder Information - As of September 30, 2022, major shareholder Yu Hua holds 3,576,000 shares, representing approximately 9.31% of the issued share capital[37] - At least 25% of the issued share capital is held by public shareholders as of the reporting period[41] Corporate Governance - The company has adhered to the corporate governance code, with a commitment to high standards and value creation for shareholders[43] - The roles of the Chairman and CEO are currently held by the same individual, Zhang Youlian, which the board believes provides strong leadership and effective long-term strategy implementation[43] - The audit committee, established in March 2014, consists of three independent non-executive directors and is responsible for overseeing financial reporting and internal controls[47] - The audit committee has reviewed the unaudited consolidated financial report for the nine months ending September 30, 2022, and confirmed compliance with accounting standards and GEM listing rules[50] - The company has not purchased liability insurance for directors and executives due to ongoing considerations of proposals from various underwriters[45] Business Development - The company has confirmed a preliminary business agreement with APP Group, one of the largest paper groups in Southeast Asia, to expand its overseas market presence[26] - The group plans to enhance the use of modified bentonite in paper coatings to improve rheological properties and surface quality of coated paper[32] Other Information - The company was incorporated in December 2000 and listed on the GEM of the Hong Kong Stock Exchange in January 2015[12] - There are no significant events occurring after the reporting period as of the report date[51] - The company will distribute the quarterly report for the nine months ending September 30, 2022, to shareholders and publish it on its website and the stock exchange[52]

Financial Performance - Revenue decreased by 2.1% to approximately RMB 68,065,000 compared to RMB 69,519,000 in the previous year[7] - Gross profit decreased by 12.4% to approximately RMB 24,645,000, with a gross margin of 36.2% compared to 40.5% in the previous year[7] - The loss attributable to equity holders of the company was approximately RMB 1,005,000, compared to a profit of approximately RMB 4,116,000 in the previous year[7] - Basic loss per share was approximately RMB 0.026, compared to basic earnings per share of RMB 0.107 in the previous year[7] - The company reported a net loss of RMB 1,004,912 for the six months ended June 30, 2022, compared to a profit of RMB 4,115,812 for the same period in 2021, indicating a significant decline in performance[12] - Total revenue for the six months ended June 30, 2022, was RMB 68,065,441, a decrease of 2.09% from RMB 69,519,419 in the same period of 2021[28] Assets and Liabilities - Total assets as of June 30, 2022, were RMB 172,705,269, a decrease from RMB 248,597,593 at the end of the previous year[9] - Current liabilities increased to RMB 164,326,872 from RMB 132,946,495 at the end of the previous year[10] - Inventory increased to RMB 66,794,255 from RMB 59,401,955 at the end of the previous year[9] - Trade and other receivables rose to RMB 75,614,563 from RMB 60,348,289 at the end of the previous year[9] - Total trade receivables increased to RMB 71,902,195 as of June 30, 2022, up from RMB 65,246,586 as of December 31, 2021, reflecting a growth of approximately 10.1%[43] - Trade payables rose to RMB 27,269,881 as of June 30, 2022, compared to RMB 21,361,473 as of December 31, 2021, indicating an increase of about 27.7%[46] Cash Flow - The company experienced a net cash outflow from operating activities of RMB 13,310,390 for the six months ended June 30, 2022, compared to a net inflow of RMB 9,044,448 in 2021[14] - Cash and cash equivalents at the end of the period increased to RMB 16,404,098, up from RMB 10,242,592 at the end of June 30, 2021[14] - The group's cash and cash equivalents increased by approximately RMB 8,168,000 during the reporting period, with net cash outflows from operating activities of about RMB 13,310,000 and net cash inflows from financing activities of approximately RMB 25,650,000[70] Expenses - The company reported a net financial expense of RMB 3,229,182 for the six months ended June 30, 2022, compared to RMB 2,628,960 in the same period of 2021[31] - Other income decreased to RMB 636,575 in 2022 from RMB 1,225,758 in 2021, primarily due to a reduction in cost-related government grants[30] - Total sales costs increased by approximately RMB 2,030,000 or 4.9% to RMB 43,420,000, with raw material costs accounting for 75.7% of total sales costs[55] - Research and development expenses increased by approximately RMB 1,019,000 or 26.2% to RMB 4,903,000, mainly due to increased work on environmental research projects[63] - Distribution costs rose by approximately RMB 1,488,000 or 18.5% to RMB 9,529,000, primarily due to increased transportation costs[60] Dividends and Shareholder Information - The company did not declare any interim dividend for the six months ended June 30, 2022, consistent with the previous year[7] - As of June 30, 2022, Mr. Zhang Youlian holds 19,220,600 shares, representing approximately 50.05% of the issued share capital[85] - Ms. Yu Hua is a beneficial owner of 3,576,000 shares, accounting for 9.31% of the issued share capital[88] - The board resolved not to declare any interim dividend for the six months ended June 30, 2022, consistent with the previous year[97] Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code, with no significant deviations reported during the period[98] - The audit committee reviewed the unaudited consolidated financial statements for the six months ended June 30, 2022, and confirmed compliance with accounting standards[105] - There were no related party transactions or continuous related party transactions that required disclosure during the reporting period[91] Future Plans and Developments - The company continues to focus on the development and sales of bentonite-based products, with no new segments reported[27] - The company plans to focus on the research and development of high-end water-based bentonite and its application in water-based coatings, responding to the growing demand for environmentally friendly products[81] - The group aims to develop new products, including high-performance flame-retardant composite materials in collaboration with Jiangnan University[84] Other Information - The company has not reported any significant impact from the adoption of new international financial reporting standards expected to take effect by December 31, 2022[22] - There were no major acquisitions or disposals during the six months ended June 30, 2022[79] - The company has no significant contingent liabilities, legal proceedings, or potential lawsuits as of June 30, 2022[77] - There were no significant events occurring after the reporting period that require disclosure[106] - The company will issue its interim report for the six months ending June 30, 2022, to shareholders at an appropriate time[107] - The interim report will be available on the company's website and the Hong Kong Stock Exchange website[107] - The board of directors is led by Chairman Zhang Youlian, with executive directors including She Wenjie and Fan Fang[107]

Financial Performance - Revenue increased by 7.4% to approximately RMB 28,793,000 compared to RMB 26,798,000 in the same period last year[6] - Gross profit decreased by 14.1% to approximately RMB 9,653,000, with a gross margin of 33.5% compared to 41.9% last year[6] - The company reported a loss attributable to equity holders of approximately RMB 1,730,000, compared to a profit of approximately RMB 1,071,000 in the previous year[6] - Basic loss per share was approximately RMB 0.05, compared to earnings of approximately RMB 0.03 per share in the previous year[6] - No dividend was declared for the three months ended March 31, 2022, consistent with the previous year[6] - Operating loss for the period was RMB 964,401, compared to an operating profit of RMB 2,353,460 in the same period last year[7] - The company experienced a net loss before tax of RMB 2,354,444, compared to a profit before tax of RMB 1,123,600 in the previous year[7] - Total comprehensive loss attributable to equity holders was RMB 1,730,073 for the period[7] - The company’s total equity attributable to equity holders decreased to RMB 111,976,731 as of March 31, 2022, from RMB 113,706,804 at the beginning of the year[8] Revenue and Sales - For the three months ended March 31, 2022, the company's revenue was approximately RMB 28,793,480, an increase of about RMB 1,995,765 or 7.4% compared to RMB 26,797,715 for the same period in 2021[28] - The sales of organic bentonite increased significantly, contributing to the revenue growth, while sales of metallurgical pellet bentonite decreased[28] Expenses - Research and development expenses increased to RMB 1,976,500 from RMB 1,239,454 in the previous year[7] - Distribution costs for the same period were approximately RMB 3,827,000, an increase of about RMB 210,000 or 5.8% compared to RMB 3,617,000 in 2021[30] - Administrative expenses rose to approximately RMB 4,883,000, an increase of about RMB 112,000 or 2.3% from RMB 4,771,000 in the previous year[30] - Research and development expenses increased by 59.6% to approximately RMB 1,977,000 from RMB 1,239,000 in the same period last year, primarily due to increased projects in the environmental protection sector[30] Corporate Governance and Shareholding - As of March 31, 2022, Mr. Zhang Youlian holds 19,220,600 shares, representing approximately 50.05% of the issued share capital[35] - Ms. Yu Hua owns 3,576,000 shares, accounting for approximately 9.31% of the issued share capital[39] - The company maintains at least 25% of its issued share capital held by public shareholders[43] - The company has adhered to all applicable provisions of the corporate governance code during the reporting period[47] - The audit committee was established on March 26, 2014, and consists of three independent non-executive directors[50] - The audit committee's main responsibilities include reviewing financial reports and ensuring the effectiveness of internal controls[50] Future Developments and Initiatives - The company continues to focus on promoting organic bentonite for paint and coatings, with significant market recognition and growth in sales and profits[27] - The proposed "high-suspension nano inorganic gel" product has been included in the Ministry of Industry and Information Technology's key new materials application demonstration catalog[27] - The company is focusing on the development of high-end water-based bentonite, responding to the increasing demand for environmentally friendly coatings[32] - The company aims to improve paper quality by enhancing ash content and reducing fiber raw material usage through the development of ash-promoting agents[32] - The company plans to collaborate with Jiangnan University to develop high-performance flame-retardant composite materials based on non-metallic minerals[34] - The company is committed to green mining construction in line with national sustainable development requirements[34] - The company is developing inorganic modified bentonite products to meet the stability performance requirements of various water-based coatings[32] Reporting and Compliance - The effective tax rate for the company is 15% due to the high-tech enterprise certification, which provides tax incentives for three years[20] - The company has not engaged in any related party transactions during the reporting period[41] - As of March 31, 2022, there were no significant post-reporting period events[52] - The company will send the quarterly report for the three months ending March 31, 2022, to shareholders and publish it on its website[53]