FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 致：香港交易及結算所有限公司 公司名稱: 運鴻硅鑫集團控股有限公司（於開曼群島註冊成立之有限公司） 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 08349 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | HKD | | 0.01 | HKD | | 20,000,000 | | 增加 / 減少 (-) | | | 0 | | | | HKD | | 0 | | ...

Core Viewpoint - Yunhong Group has completed a strategic restructuring, transferring 70% of its shares to Zhongqing Baoshang Group, aiming to raise 50 billion yuan for further development [1][2]. Group 1: Strategic Restructuring - The strategic restructuring involves Yunhong Group's chairman Li Yubao transferring 70% of his shares to Zhongqing Baoshang, while the employee union retains 30% [1]. - Following the restructuring, Li Yubao will no longer hold shares or shareholder rights in Yunhong Group [1]. - The restructuring is expected to facilitate a capital injection of 50 billion yuan into the company [1]. Group 2: Partnership and Investment Focus - The partnership with Zhongqing Baoshang will focus on industrial collaboration, technological upgrades, and financial resource support [2]. - Zhongqing Baoshang plans to leverage the "Belt and Road" initiative to provide funding and international cooperation channels for Yunhong Group [2]. - Key projects include enhancing digital trade platforms, low-altitude economy industries, and infrastructure projects like the Wuxue General Aviation Airport [2]. Group 3: Company Overview and Operations - Yunhong Group, established in 2013, operates multiple integrated industrial parks, including health, digital trade, logistics, and mining sectors [3]. - The company has a comprehensive logistics plan that includes a general aviation airport and a modern logistics park in Wuxue, with significant investments planned [3]. - Yunhong Group is recognized as a national high-tech enterprise and has three publicly listed companies under its umbrella [4]. Group 4: Financial Performance of Subsidiaries - Silicon Xin Group, one of the subsidiaries, reported a revenue of 27.177 million yuan in 2024, a decrease of 43.07%, with a net loss of 4.367 million yuan [5]. - Jiacheng Holdings achieved a revenue of 258 million yuan in 2024, an increase of 9.58%, with a net profit of 11.882 million yuan, up 101.73% [5]. Group 5: Mining Operations and Strategic Importance - Yunhong Group has extended its operations into mining, with strategic partnerships in Burkina Faso for gold mining, holding exploration licenses for three mining areas [6]. - The mining resources are seen as a key factor in attracting the 50 billion yuan investment from Zhongqing Baoshang [6]. - The strategic location of Burkina Faso is highlighted as a hub for connecting North and West African markets, enhancing the investment appeal [6]. Group 6: Future Strategic Directions - The restructuring is expected to accelerate Yunhong Group's strategic layout in digital trade, low-altitude economy, and major infrastructure projects [7]. - The collaboration aims to integrate resources across new energy, digital trade, and aviation infrastructure, promoting investment along the "Belt and Road" [7]. - The partnership is based on mutual business complementarity, focusing on infrastructure, agricultural modernization, and mineral resource development [7].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of approximately RMB 26.9 million, a decrease of about 43.22% compared to the same period in 2023[12]. - The company recorded a net loss of approximately RMB 1.34 million for the fiscal year ending December 31, 2024[12]. - The company recorded a consolidated revenue of approximately RMB 27.0 million for the year ending December 31, 2024, a decrease of about RMB 20.5 million or 43.2% compared to the previous year[22]. - Domestic market sales fell from approximately RMB 38.7 million for the year ending December 31, 2023, to about RMB 16.4 million for the year ending December 31, 2024, representing a decline of approximately 57.5%[22]. - The revenue from fiberglass grating products decreased by approximately RMB 4.1 million or 28.3% to about RMB 18.2 million for the year ending December 31, 2024, compared to RMB 22.3 million in the previous year[23]. - The revenue from epoxy wedge products decreased from approximately RMB 25.3 million in 2023 to about RMB 4.2 million in 2024, a decline of approximately RMB 21.1 million[24]. - The group recorded a net loss of approximately RMB 1.3 million for the year ending December 31, 2024, an improvement from a net loss of approximately RMB 8.9 million for the year ended December 31, 2023[31]. Business Strategy and Development - The management plans to strengthen upstream and downstream channel construction to consolidate competitive advantages in core categories and expand market share[13]. - The company aims to increase investment in research and development and enhance brand building to maintain overall competitiveness in cost, technology, and quality[13]. - The company will actively adjust its business structure to increase the proportion of high-resource profitability businesses and clients in the real economy[13]. - The company intends to expand its layout in emerging business areas such as new energy, foundry sand, and oil fracturing sand[13]. - The company will strengthen cooperation with leading new energy clients to explore upgraded business models[13]. Cost and Expenses - Distribution costs increased by approximately RMB 1.2 million or 56% from about RMB 2.0 million for the year ended December 31, 2023, to approximately RMB 3.2 million for the year ending December 31, 2024[30]. - Administrative expenses decreased by approximately RMB 16.5 million or 91% from about RMB 18.1 million for the year ended December 31, 2023, to approximately RMB 1.6 million for the year ending December 31, 2024, mainly due to the reversal of bad debt provisions[30]. Corporate Governance - The company has adhered to the corporate governance code as per GEM Listing Rules throughout the year ending December 31, 2024[59]. - The board of directors is responsible for formulating the overall strategy and setting management goals, with monthly financial and operational data provided to assess performance[60]. - The company has established a corporate governance policy to review and monitor compliance with legal and regulatory requirements[61]. - The board consists of seven members, with four executive directors and three independent non-executive directors[62]. - The board has established a diversity policy, with current composition being three male and four female directors[64]. - The board's independent non-executive directors have confirmed their independence in accordance with GEM Listing Rules[63]. Environmental, Social, and Governance (ESG) - The company reported a total greenhouse gas emissions of 1,247 tons in 2024, a decrease of 50.5% from 2,517 tons in 2023[115]. - Nitrogen oxides emissions increased significantly to 110,613 grams in 2024 from 11,624 grams in 2023, representing an increase of 850.5%[115]. - The company aims to maintain or reduce total greenhouse gas emissions density, which was 46.2 tons per million RMB revenue in 2024, down from 52.9 tons in 2023[115]. - The company has implemented various measures to reduce emissions, including the installation of energy-efficient machinery and maximizing natural light in production facilities[116]. - The company recognizes the risks associated with climate change and is actively developing strategies to manage these risks[127]. Employee and Labor Relations - The total number of full-time employees in China is 64, with 47 males and 17 females[131]. - Employee turnover rates are 45% for males and 29% for females, with a staggering 100% turnover rate for employees aged 18 to 25[133]. - The company has maintained a commitment to employee training, with 18 employees (28%) receiving training during the year, totaling 324 hours[140]. - There were no reported violations of labor laws in the fiscal year ending December 31, 2024[135]. - The company has implemented measures to ensure occupational health and safety, with no work-related injuries reported in 2024[136]. Financial Reporting and Audit - The consolidated financial statements reflect a financial position of the group as of December 31, 2024, in accordance with Hong Kong Financial Reporting Standards[192]. - The audit identified trade receivables impairment as a key audit matter due to the significant balance and management's estimates involved[197]. - The audit was conducted in accordance with Hong Kong Auditing Standards, ensuring independence and ethical compliance[193]. - The company must ensure that the financial statements comply with the disclosure requirements of the Companies Ordinance[200].

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 26,994,000, a decrease of 43.6% compared to RMB 47,546,000 in 2023[4] - Gross profit for the same period was RMB 1,753,000, down 81.5% from RMB 9,502,000 in the previous year[4] - Operating loss narrowed to RMB 4,224,000 from RMB 10,083,000 year-on-year, indicating an improvement of 58.0%[4] - The net loss attributable to shareholders was RMB 4,367,000, compared to RMB 8,910,000 in 2023, reflecting a reduction of 51.0%[4] - Basic and diluted loss per share improved to RMB 1.09 from RMB 2.23, a decrease of 51.0%[4] - Revenue from glass fiber reinforced plastic products decreased to RMB 22,401 thousand in 2024 from RMB 47,546 thousand in 2023, representing a decline of approximately 53%[20][23] - The company reported a total revenue of RMB 26,994 thousand for 2024, down 43% from RMB 47,546 thousand in 2023[20][21] - The glass fiber business generated a profit of RMB 5,733 thousand, while the silicon sand business incurred a loss of RMB 1,994 thousand, leading to an overall loss of RMB 4,367 thousand for the year[22] - Revenue from local customers in mainland China decreased to RMB 16,434 thousand in 2024 from RMB 38,658 thousand in 2023, a decline of approximately 57%[25] - The company recorded a consolidated revenue of approximately RMB 27.0 million for the year ended December 31, 2024, a decrease of approximately RMB 20.5 million or 43.2% compared to the previous year[63] - Domestic market sales decreased from approximately RMB 38.7 million for the year ended December 31, 2023, to approximately RMB 16.4 million for the year ended December 31, 2024, representing a decline of about 57.5%[63] Assets and Liabilities - Total assets decreased to RMB 60,016,000 from RMB 69,746,000, a decline of 14.0%[5] - Cash and cash equivalents increased significantly to RMB 15,347,000 from RMB 7,263,000, an increase of 111.4%[5] - The company reported a net current asset position of RMB 34,007,000, up from RMB 32,981,000, indicating a growth of 3.1%[5] - Non-current liabilities decreased to RMB 2,432,000 from RMB 7,795,000, a reduction of 68.8%[5] - The company’s total liabilities increased to RMB 22,653 thousand in 2024 from RMB 31,856 thousand in 2023[22][23] - Trade receivables decreased from RMB 36,443,000 in 2023 to RMB 17,524,000 in 2024, a decline of about 51.9%[46] - The net amount of trade receivables and notes receivable was RMB 34,920,000 in 2024, down from RMB 41,638,000 in 2023, indicating a reduction of approximately 16.1%[46] - The total expected credit loss provision for trade receivables and notes receivable was RMB 6,409,000 in 2024, significantly lower than RMB 16,724,000 in 2023, reflecting a decrease of about 61.7%[51] - The aging analysis of trade receivables shows that the amount overdue by more than 365 days increased to RMB 26,113,000 in 2024 from RMB 12,507,000 in 2023, representing a rise of approximately 109.0%[49] - The company’s contract assets primarily relate to the rights to receive consideration from customers for goods transferred, with a recognition of revenue of RMB 87,000 in 2024[43] Research and Development - The company continues to focus on R&D and production of fiberglass products and industrial silica sand materials in China[7] - The company’s research and development expenses were RMB 1,024 thousand in 2024, down from RMB 1,448 thousand in 2023[30] - Research and development costs include employee benefits of RMB 795,000 and material costs of RMB 1,000, down from RMB 1,135,000 and RMB 49,000 in 2023, respectively[32] - The company plans to enhance its R&D capabilities by controlling raw materials, procuring new equipment, and hiring professional R&D personnel to develop more competitive high-quality products[60] Financial Reporting Standards - The group has adopted multiple revisions of the Hong Kong Financial Reporting Standards effective from January 1, 2024, which did not have a significant impact on the disclosures or amounts reported in the financial statements[12] - The adoption of HKAS 1 (Revised) clarified the classification of liabilities as current or non-current, without affecting the amounts or timing of recognition for assets, liabilities, income, or expenses[13] - The group has implemented HKFRS 16 (Revised) regarding lease liabilities in sale and leaseback transactions, ensuring that the seller-lessee does not recognize gains or losses related to the retained right of use after the commencement date[15] - The revisions to HKAS 7 and HKFRS 7 require entities to disclose information about supplier financing arrangements, allowing users to assess the impact on liabilities and cash flows[11] - The group is continuously reviewing estimates and related assumptions, with changes affecting the current period recognized in the period of the estimate change[10] - The revisions to HKAS 1 (Revised) regarding non-current liabilities with covenants require entities to consider compliance with covenants when classifying liabilities[14] - The group has not applied new or revised standards that have been issued but are not yet effective, planning to adopt them when applicable[17] - The revisions to HKFRS 16 clarify the subsequent measurement of liabilities arising from sale and leaseback transactions, particularly for variable lease payments not dependent on indices or rates[16] - The group’s financial statements are prepared using the historical cost method, with management making judgments and estimates that may differ from actual results[10] Environmental and Compliance - The company is committed to minimizing any negative environmental impacts during production and has not faced any significant non-compliance issues with environmental regulations in China[61] - The company has adopted the trading compliance guidelines as per GEM Listing Rules 5.48 to 5.67, confirming adherence by all directors for the fiscal year ending December 31, 2024[87] - The Audit Committee, established on December 16, 2016, consists of three independent non-executive directors, with Mr. Wu Shiliang as the chairman, and has reviewed the accounting principles and internal controls for the fiscal year ending December 31, 2024[88] Dividends and Recommendations - The company did not recommend any final dividends for the years ended December 31, 2024, and 2023[31] - The board recommended not to declare any dividends for the year ended December 31, 2024[80]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 16,076,000, a decrease of 37% compared to RMB 25,613,000 for the same period in 2023[1] - Gross profit for the period was RMB 2,484,000, down 52% from RMB 5,209,000 in the previous year[1] - Operating loss for the six months ended June 30, 2024, was RMB 1,605,000, compared to an operating profit of RMB 31,000 in the same period of 2023[1] - Net loss for the period was RMB 1,783,000, compared to a net loss of RMB 916,000 in the prior year[1] - Basic and diluted loss per share for the period was RMB (0.45), compared to RMB (0.23) in the same period of 2023[1] - The company reported a pre-tax loss of RMB 1,783 thousand for the six months ended June 30, 2024, compared to a loss of RMB 916 thousand for the same period in 2023, indicating a worsening financial performance[16] - Basic loss per share for the six months ended June 30, 2024, was RMB 0.45, compared to RMB 0.23 for the same period in 2023, reflecting increased losses per share[17] - The group reported a loss before tax of RMB 1,783 thousand, compared to a loss of RMB 4,733 thousand in the previous period, indicating an improvement in performance[19] - The company recorded a net loss of approximately RMB 17.8 million for the six months ended June 30, 2024, compared to a net loss of approximately RMB 9.6 million for the same period in 2023[38] Cash Flow and Assets - Cash and cash equivalents increased to RMB 15,125,000 as of June 30, 2024, from RMB 9,082,000 at the beginning of the period[4] - Net cash generated from operating activities was RMB 7,875,000, significantly higher than RMB 1,359,000 in the same period last year[4] - Total assets as of June 30, 2024, were RMB 61,543,000, compared to RMB 57,042,000 as of December 31, 2023[2] - Non-current assets amounted to RMB 36,030,000, slightly down from RMB 36,765,000 at the end of 2023[2] - Current liabilities increased to RMB 30,991,000 from RMB 24,061,000 at the end of 2023[2] - Trade receivables and bills receivable (net of expected credit loss provisions) amounted to RMB 40,331 thousand as of June 30, 2024, slightly down from RMB 41,638 thousand at the end of 2023[21] - The group recognized an expected credit loss provision of RMB 4,076 thousand for trade receivables aged over one year[22] - Trade payables totaled RMB 4,060 thousand as of June 30, 2024, compared to RMB 2,958 thousand at the end of 2023, reflecting an increase of approximately 37.2%[25] - As of June 30, 2024, the group had no asset pledges, compared to approximately RMB 1.8 million as of December 31, 2023[43] Revenue Breakdown - Sales of fiberglass products generated RMB 14,503 thousand, with fiberglass grating sales at RMB 9,602 thousand and epoxy wedge strips at RMB 4,901 thousand, reflecting a significant decline in epoxy wedge strip sales from RMB 15,675 thousand in the previous year[9] - The fiberglass business generated revenue of RMB 14,503 thousand, while the silicon sand business contributed RMB 1,573 thousand for the same period[19] - Revenue from local customers in China (excluding Hong Kong) was RMB 11,009 thousand, down from RMB 21,466 thousand year-on-year, a decrease of approximately 48.7%[20] - Revenue from overseas customers increased to RMB 5,067 thousand, up from RMB 4,147 thousand, marking a growth of approximately 22.2%[20] - The total revenue from the sale of silica sand was RMB 1,573 thousand, marking the first revenue from this segment, as there were no sales reported in the previous year[9] Expenses and Costs - Employee costs, including director remuneration, amounted to RMB 4,265 thousand for the six months ended June 30, 2024, slightly down from RMB 4,375 thousand in the previous year[12] - Research and development costs for the period were RMB 571 thousand, up from RMB 519 thousand in the same period last year, indicating continued investment in innovation[12] - The company’s financial costs included bank charges of RMB 8 thousand and lease liabilities interest of RMB 94 thousand, showing a decrease in financial costs compared to the previous year[12] - Administrative expenses increased by approximately RMB 21 million or 48.8% to RMB 64 million for the six months ended June 30, 2024, mainly due to higher audit and legal fees[38] - The total employee cost for the six months ended June 30, 2024, was approximately RMB 4.3 million, slightly down from RMB 4.4 million for the same period in 2023[45] Corporate Governance and Management - The company did not declare any interim dividends for the six months ended June 30, 2024, consistent with the previous year[15] - The group did not conduct any acquisitions or disposals of subsidiaries or associates during the six months ended June 30, 2024[44] - The board does not recommend any interim dividend for the six months ended June 30, 2024, consistent with no dividend for the same period in 2023[46] - The group has not used any financial instruments to hedge foreign exchange risks as of June 30, 2024[42] - The group has no significant post-reporting date events from June 30, 2024, until the report date[47] - Li Yubao holds a 40.9% equity interest in the company through LF INTERNATIONAL PTE. LTD. and another entity, totaling 163,600,000 shares[49] - The group did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2024[62] - There were no competitive interests held by directors or their close associates in any business that competes directly or indirectly with the group as of June 30, 2024[63] - The company has adopted the GEM Listing Rules regarding directors' securities transactions and has complied with the code of conduct for the six months ending June 30, 2024[64] - The board believes that the company has adhered to all applicable provisions of the corporate governance code for the six months ending June 30, 2024[65] - The Audit Committee, established on December 16, 2016, consists of three independent non-executive directors and has reviewed the unaudited performance for the six months ending June 30, 2024[66] Future Plans - The company plans to commence production and sales of industrial silica sand materials in the second half of 2024, which is expected to bring significant economic benefits[31] - The company is currently constructing a new factory in Inner Mongolia to prepare for its silica sand business segment[32] - The company aims to enhance product recognition through improved technology and maintain effective cost control to strengthen competitiveness[31]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，且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依賴該等內容而引致的任何損失承擔任何責任。 Yunhong Guixin Group Holdings Limited 運鴻硅鑫集團控股有限公司 （於開曼群島註冊成立之有限公司 ） （股份代號：8349） 截至2024年6月30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。 本公告（運鴻硅鑫集團控股有限公司（「本公司」）董事（「董事」）會（「董事會」）就 此共同及個別地承擔全部責任）載有遵照聯交所GEM 證券上市規則（「GEM 上市 規則」）而提供的資料，旨在提 ...

Financial Performance - In the fiscal year ending December 31, 2023, the total sales revenue was approximately RMB 47.5 million, a decrease of 23.7% from RMB 62.3 million in 2022[5]. - The group recorded a net loss of approximately RMB 8.9 million for the year ended December 31, 2023, a decrease of RMB 11.5 million compared to a net profit of approximately RMB 2.6 million for the year ended December 31, 2022[28]. - Total revenue for the group was approximately RMB 47.5 million for the year ended December 31, 2023, a decrease of approximately RMB 14.7 million or 23.7% compared to the previous year[35]. - Revenue from the domestic market decreased by approximately 24.7% to about RMB 38.7 million, accounting for approximately 81.3% of total sales for the year ended December 31, 2023, down from 82.5% the previous year[35]. - The sales revenue from the U.S. market was RMB 454,000 in 2023, a significant decrease from RMB 2.47 million in 2022[5]. - Sales to the U.S. market decreased by approximately 81.6% to about RMB 0.5 million, primarily due to higher import tariffs imposed by the U.S. government[25]. Cost and Expenses - The total employee costs for the year were approximately RMB 8.8 million, down from RMB 10.9 million in 2022, reflecting a reduction in workforce from 65 to 60 employees[10]. - Administrative expenses decreased by approximately RMB 0.9 million or 8.1% to about RMB 10.0 million in 2023, primarily due to reduced employee costs and R&D expenses[6]. - Distribution costs decreased by approximately RMB 0.1 million or 5.3% to about RMB 2.0 million for the year ended December 31, 2023[26]. - The gross profit margin decreased from approximately 19.1% for the year ended December 31, 2022, to about 11.2% for the year ended December 31, 2023, a decline of approximately 7.9 percentage points[23]. - The average selling price of fiberglass grating products decreased by approximately RMB 19.5 per square meter or about 4.8% to RMB 386.3 per square meter for the year ended December 31, 2023[24]. - The average selling price of epoxy wedge products decreased by approximately RMB 3.8 per meter to RMB 51.7 per meter, with sales volume decreasing by approximately 18.7%[24]. Equity and Dividends - As of December 31, 2023, the total equity attributable to the company's equity holders was approximately RMB 61.95 million, down from RMB 70.86 million in 2022[8]. - The company did not declare any dividends for the fiscal year ending December 31, 2023, consistent with the previous year[11]. Cash and Assets - The company had cash and cash equivalents of RMB 1.82 million as of December 31, 2023, with no assets pledged to banks in 2022[7]. - As of December 31, 2023, the group reported inventory of RMB 1,203,000, an increase of 9.2% from RMB 1,102,000 in 2022[137]. - The company reported cash and cash equivalents held in banks with high credit ratings, indicating limited risk exposure[191]. Future Plans and Strategies - The company plans to resume trading on the GEM of the Stock Exchange on March 18, 2024, after meeting all resumption guidance[14]. - The company plans to strengthen upstream and downstream channel construction and expand market share in the fiberglass market, which is expected to grow steadily in the coming years[70][73]. - The company is focusing on expanding into emerging business areas such as new energy, casting sand, and oil fracturing sand[70]. - The company plans to start production and sales of industrial silica sand in the second half of 2024, anticipating significant economic benefits from this initiative[94]. Governance and Compliance - The company has established a risk management committee to oversee risk management and internal control systems[144]. - The company has complied with the internal control and risk management code throughout the year ending December 31, 2023[163]. - The company has adopted an anti-corruption policy and has not been aware of any violations related to bribery, extortion, fraud, or money laundering that could significantly impact its operations for the year ended December 31, 2023[164]. - The board consists of six directors, with three executive directors and three independent non-executive directors, ensuring a balance of skills and experience[121]. Market and Industry Engagement - The company is committed to promoting its fiberglass products along the Belt and Road regions, leveraging government macroeconomic stimulus measures[92]. - The company is actively involved in drafting industry standards in China to stay updated on global fiberglass industry trends[92]. - The company continues to engage in marketing activities to strengthen customer awareness of its products and competitive advantages[93]. - The company emphasizes the importance of effective marketing to capture market share and attract potential customers[93]. Research and Development - Management aims to increase investment in research and development and enhance brand building to maintain competitiveness in cost, technology, and quality[70]. - The group plans to enhance its R&D capabilities by controlling raw materials, procuring new equipment, and hiring specialized personnel[110]. - The group aims to enhance product recognition through improved technology and effective cost control, emphasizing the importance of R&D for future growth[110].

Financial Performance - For the year ended December 31, 2023, total revenue from customer contracts was RMB 47,546 thousand, a decrease of 23.6% from RMB 62,287 thousand in 2022[33]. - The company reported a net loss of RMB 8,910 thousand for the year ended December 31, 2023, compared to a profit of RMB 2,615 thousand in 2022[20]. - The company reported a basic loss per share of RMB 2.23 for the year ending December 31, 2023, compared to a basic earnings per share of RMB 0.65 in 2022[47]. - The gross profit for the year was RMB 9,502,000, down from RMB 15,622,000 in the previous year, indicating a decrease of about 39.5%[197]. - The company reported a net loss attributable to the owners of the company for the year was RMB 8,910,000, compared to a profit of RMB 2,615,000 in 2022, marking a significant turnaround[197]. - Total revenue for 2023 was RMB 33,929,000, compared to RMB 33,550,000 in 2022, representing a year-over-year increase of 1.13%[65]. - The company incurred a total of RMB 8,094,000 in impairment losses on contract assets and trade and other receivables, an increase from RMB 5,269,000 in the previous year[197]. Assets and Liabilities - The company's current assets decreased to RMB 32,981 thousand in 2023 from RMB 46,653 thousand in 2022, reflecting a decline of 29.3%[5]. - The total assets less current liabilities decreased from RMB 83,039 thousand in 2022 to RMB 69,746 thousand in 2023, a decline of 16.0%[18]. - The company's net assets decreased to RMB 61,951 thousand in 2023 from RMB 70,861 thousand in 2022, representing a decrease of 12.6%[19]. - The total non-current assets increased by RMB 28,677,000 during the year, with RMB 8,568,000 attributed to the fiberglass segment[36]. - The company’s total liabilities decreased to RMB 58,362,000 in 2023 from RMB 59,024,000 in 2022, a reduction of approximately 1.12%[85]. - The total assets reported were RMB 93,807,000, while total liabilities amounted to RMB 31,856,000, resulting in a net asset position[192]. Revenue Breakdown - Revenue from local customers in mainland China was RMB 38,658,000, a decrease from RMB 51,366,000 in the previous year, indicating a decline of approximately 25%[36]. - Domestic market sales decreased by approximately 24.7% from about RMB 51.4 million for the year ended December 31, 2022, to approximately RMB 38.7 million for the year ended December 31, 2023, accounting for about 81.3% of total sales[132]. - The revenue from fiberglass grating products decreased by approximately RMB 6.6 million or 22.9% to about RMB 22.3 million for the year ended December 31, 2023, compared to approximately RMB 28.9 million for the year ended December 31, 2022[157]. - The average selling price of fiberglass grating products decreased by approximately RMB 19.5 per square meter or about 4.8% to RMB 386.3 per square meter for the year ended December 31, 2023[136]. - The average selling price of epoxy wedge products decreased from RMB 55.5 per meter for the year ended December 31, 2022, to RMB 51.7 per meter for the year ended December 31, 2023, a reduction of approximately RMB 3.8 per meter[160]. Expenses and Costs - Employee benefits expenses decreased to RMB 8,215,000 in 2023 from RMB 10,020,000 in 2022, a reduction of approximately 18%[66]. - Administrative expenses decreased by approximately RMB 0.9 million or 8.1% to about RMB 10.0 million for the year ended December 31, 2023, mainly due to reduced employee costs and R&D expenses[139]. - The cost of inventories included employee benefits expenses of RMB 3,531,000 and depreciation of property, plant, and equipment of RMB 718,000 for 2023[68]. Inventory and Receivables - Inventory levels dropped significantly from RMB 9,058 thousand in 2022 to RMB 4,081 thousand in 2023, a decrease of 55.0%[3]. - Trade and other receivables decreased from RMB 51,584 thousand in 2022 to RMB 42,676 thousand in 2023, a decline of 17.3%[3]. - Trade receivables decreased to RMB 36,443,000 in 2023 from RMB 41,161,000 in 2022, reflecting a decline of about 11%[85]. - The net amount of trade receivables and bills receivable was RMB 41,638,000 in 2023, down from RMB 50,315,000 in 2022, indicating a decrease of approximately 17%[85]. - The aging analysis of trade receivables showed that amounts overdue by 0-30 days decreased from RMB 31,323,000 in 2022 to RMB 6,471,000 in 2023, a decline of approximately 79.3%[114]. Research and Development - The company incurred research and development costs of RMB 1,872,000, which is a decrease from RMB 1,448,000 in the previous year[42][43]. - The company plans to enhance its R&D capabilities by controlling raw materials, procuring new equipment, and hiring professional R&D personnel to develop more competitive high-quality products[127]. Corporate Governance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix C1, ensuring compliance throughout the year[182]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[185]. - The company has maintained high standards of corporate governance to protect shareholder interests and enhance corporate value[182]. Future Outlook - The company anticipates steady growth in the overall fiberglass market in China in the coming years, driven by the material's superior performance and potential applications in various industries[113]. - The construction of the factory in Inner Mongolia is progressing as planned and is expected to be completed in the first half of 2024, with production and sales of industrial silica sand materials anticipated to start in the second half of 2024[155]. - The company plans to enhance its marketing efforts through online advertising and industry journals to capture market share and attract potential customers[154].

Financial Transactions and Audit Issues - The company has transferred approximately RMB 11,400,000 to repay shareholder loans and RMB 19,900,000 for construction payments related to its subsidiary, Guosilicon New Materials (Inner Mongolia) Co., Ltd.[3] - The company identified discrepancies in financial records amounting to RMB 31,300,000 during the audit process, leading to necessary adjustments in the accounts of its subsidiaries[13] - The company’s accounting personnel were unaware of payments made on behalf of Guosilicon, resulting in unrecorded transactions in its accounts[15] - The company is currently facing challenges in obtaining VAT invoices from contractors, which has delayed the audit process[37] - The resignation of the previous auditor has further delayed the progress of the audit work[47] - The company recorded a total amount of approximately RMB 11.4 million in shareholder loans and RMB 19.9 million in advances, with audit procedures in place to verify the authenticity of these transactions[75] - Approximately RMB 31.1 million was identified as other receivables related to audit issues, leading to delays in the publication of financial results[110] - The company faced challenges in recruiting qualified auditors due to COVID-19 restrictions, impacting its ability to manage financial and audit processes effectively[112] Business Development and Strategy - The company plans to develop the silica sand business due to increasing domestic demand in industries such as glass, construction materials, and petrochemicals[6] - A cash return of RMB 31,000,000 was generated from the sale of a wholly-owned subsidiary in June 2022, which will be reinvested into the silica sand manufacturing business[8] - The company conducted a comprehensive feasibility study on the silica sand business, including market demand analysis and profit forecasts, indicating significant potential for business volume and profitability[8] - The company aims to align its silica sand business with its core operations, enhancing long-term growth potential for shareholders[6] - The company is exploring various business opportunities, including asset sales, acquisitions, and diversification strategies to improve overall growth potential[6] - The company is expected to improve its loss situation once the production line for silica sand is operational[90] Internal Control and Compliance - The internal control review report identified several weaknesses and proposed improvements, which the company plans to implement by the end of June 2024[52] - The internal control consultant found no significant internal control deficiencies, only minor weaknesses that require attention[50] - The internal control consultant identified several medium to low-level control weaknesses within the group's internal control system[96] - The company has implemented remedial measures and internal control improvements expected to be completed by June 2024 to address major findings from internal control assessments[99] - The company is committed to complying with GEM listing rules and will regularly review and update its internal control policies[99] Financial Performance - Revenue for the year ended December 31, 2022, was approximately RMB 62.287 million, primarily from the research, production, and sales of fiberglass grating and epoxy wedge products in China[63] - The company reported revenue of RMB 62.287 million for the year ended December 31, 2022, and RMB 25.613 million for the six months ended June 30, 2023, indicating a decline in performance[103] - The company experienced a net loss of RMB 916,000 for the six months ended June 30, 2023, compared to a profit of RMB 2.615 million for the year ended December 31, 2022[103] - Total assets decreased from RMB 111.785 million as of December 31, 2022, to RMB 107.450 million as of June 30, 2023[103] - Total liabilities decreased from RMB 40.924 million as of December 31, 2022, to RMB 37.505 million as of June 30, 2023[103] Corporate Governance and Meetings - The company plans to hold a board meeting on December 28, 2023, to address corporate governance issues, as no such meetings were held in 2022[66] - The audit committee's first meeting for the year is scheduled for January 17, 2024, to discuss matters related to the 2023 annual audit[66] - The company plans to publish its annual report for the year ending December 31, 2022, on January 22, 2024[89] - The company plans to publish its annual results for the year ended December 31, 2022, on January 17, 2024, and the first quarter results for the three months ended March 31, 2023, on January 29, 2024[101] - The company has been continuously updating shareholders and investors on significant information since the suspension of its shares[90] - The board believes that the ongoing implementation of remedial measures will not have a significant adverse impact on the group's operations and financial condition[87] - The board has confirmed that all significant information necessary for shareholders and investors to assess the company's status has been disclosed[91] Construction and Land Use - The company has successfully changed the land use of approximately 19.52 acres from agricultural to industrial use as of March 2023, allowing for the purchase of this land in June 2023[17] - A new lease agreement was established in June 2023, granting Guosilicon the use of 6 acres of industrial land for a period of 10 years at a monthly rent of RMB 1,667[17] - The company has signed six contracts with multiple suppliers for the construction of a new production line, with two contracts signed in November 2022 totaling RMB 7,656,546 and RMB 6,342,421 respectively[18] - The applicable percentage rate for each contract does not exceed 5%, but the transactions under the two contracts exceed 5% and are subject to disclosure requirements under GEM listing rules[18] - Due to the impact of COVID-19 and the remote location of the Inner Mongolia mining area, the company has faced delays in project completion and has agreed with contractors to make payments based on actual progress[27]

Financial Performance - For the nine months ended September 30, 2023, the company's revenue was RMB 36,252,000, a decrease of 8.9% compared to RMB 39,605,000 for the same period in 2022[5] - The gross profit for the nine months ended September 30, 2023, was RMB 7,161,000, down 30.0% from RMB 10,386,000 in the same period of 2022[5] - The operating loss for the nine months ended September 30, 2023, was RMB 379,000, compared to an operating profit of RMB 2,348,000 for the same period in 2022[5] - The net loss for the nine months ended September 30, 2023, was RMB 1,602,000, compared to a net profit of RMB 776,000 in the same period of 2022[5] - Basic and diluted loss per share for the nine months ended September 30, 2023, was RMB (0.40), compared to RMB 0.19 for the same period in 2022[5] - The company reported total comprehensive loss of RMB 1,602,000 for the nine months ended September 30, 2023, compared to total comprehensive income of RMB 776,000 for the same period in 2022[5] Expenses and Costs - The company’s administrative expenses for the nine months ended September 30, 2023, were RMB 6,093,000, a decrease of 30.5% from RMB 8,768,000 in the same period of 2022[5] - The company’s financial costs for the nine months ended September 30, 2023, increased to RMB 213,000 from RMB 46,000 in the same period of 2022[5] - The cost of inventory for the nine months ended September 30, 2023, was RMB 25,984,000, a decrease from RMB 27,962,000 in 2022[13] - Research and development costs for the nine months ended September 30, 2023, were RMB 805,000, down from RMB 1,554,000 in 2022[13] - The company incurred a total tax expense of RMB 1,010,000 for the nine months ended September 30, 2023, compared to RMB 1,526,000 in 2022[15] - Distribution costs increased by approximately RMB 0.5 million or 32.8% to approximately RMB 2.0 million for the nine months ended September 30, 2023, mainly due to increased wages and salaries[38] - Administrative expenses decreased by approximately RMB 2.7 million or 30.5% to approximately RMB 6.1 million for the nine months ended September 30, 2023, primarily due to a reduction in rental expenses classified as cost of sales during the period[38] Revenue Breakdown - Revenue from fiberglass products for the three months ended September 30, 2023, was RMB 10,639,000, a decrease of 34.3% compared to RMB 16,264,000 for the same period in 2022[12] - For the nine months ended September 30, 2023, revenue from fiberglass products was RMB 36,252,000, down 8.9% from RMB 39,605,000 in 2022[12] - Revenue from fiberglass grating products decreased by 15.9% to approximately RMB 15.4 million for the nine months ended September 30, 2023, primarily due to rising raw material and transportation costs[36] - Revenue from epoxy wedge products slightly decreased by 2.0% to approximately RMB 20.8 million for the nine months ended September 30, 2023, with a gross margin drop from 20.0% to 12.8%[36] - The overall domestic market sales decreased by approximately 4.1% to about RMB 29.9 million for the nine months ended September 30, 2023[33] - Domestic sales accounted for approximately 82.3% of total sales for the nine months ended September 30, 2023, an increase of 3.7 percentage points from 78.6% in the same period of 2022[33] Future Plans and Developments - The company plans to commence production and sales of industrial silica sand materials in the second half of 2024, anticipating significant economic benefits from this initiative[31] - The company is currently constructing a new facility in Inner Mongolia to support its silica sand business segment, responding to increasing domestic demand[31] - The company aims to enhance its R&D capabilities by controlling raw material sources, acquiring new equipment, and hiring specialized personnel[29] - Management expects steady growth in the overall fiberglass market in China in the coming years due to the material's superior performance and potential applications in various industries[28] Shareholder Information - As of September 30, 2023, Mr. Li holds 163,600,000 shares of the company, representing 40.9% of the company's equity[41] - Major shareholders include LFS and LFB, each holding 123,600,000 shares, representing 30.9% of the company's equity[46] - The company did not purchase, sell, or redeem any of its listed securities during the nine months ended September 30, 2023[50] Corporate Governance - The company confirmed that there were no directors or their close associates holding interests in any business that competes directly or indirectly with the group during the nine months ended September 30, 2023[51] - The company has adopted the GEM Listing Rules as a code of conduct for directors trading in the company's securities, and all directors complied with these standards during the nine months ended September 30, 2023[52] - The company believes it has complied with all applicable corporate governance code provisions during the nine months ended September 30, 2023[53] - The Audit Committee was established on December 16, 2016, consisting of three independent non-executive directors, with Mr. Wu Shiliang as the chairman[55] - The Audit Committee's main responsibilities include reviewing and supervising financial reporting procedures, internal controls, and risk management systems[55] - The group reviewed its unaudited performance for the nine months ending September 30, 2023[55]