Group 1 - The core point of the article is that Ms. Jin Dan has resigned as an executive director of Silicon Xin Group (08349) due to other work commitments, effective from August 25, 2025 [1]

Group 1 - The company reported a revenue of 12.67 million RMB for the six months ending June 30, 2025, representing a year-on-year decrease of 21.17% [1] - The company incurred a loss of 3.995 million RMB during the same period, which is an increase of 124.06% compared to the previous year [1] - The basic loss per share was 0.01 RMB [1]

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） 董事名單與其角色和職能 運鴻硅鑫集團控股有限公司董事（「董事」）會（「董事會」）成員載列如下： 李玉保先生 （董事會主席） 張亞平女士 （行政總裁） 施冬英女士 （合規主任） 獨立非執行董事 吳世良先生 文鵬先生 龍梅女士 董事會委員會 董事 審核委員會 薪酬委員會 提名委員會 風險 管理委員會 李玉保先生 成員 張亞平女士 成員 成員 施冬英女士 主席 吳世良先生 主席 成員 文鵬先生 成員 成員 主席 成員 龍梅女士 成員 主席 董事會設立4個委員會。下表提供各董事會成員在這些委員會中所擔任的職位資料： 香港，2025年8月25日 執行董事 ...

[Company Information and Declarations](index=1&type=section&id=%E5%85%AC%E5%8F%B8%E4%BF%A1%E6%81%AF%E4%B8%8E%E5%A3%B0%E6%98%8E) This section outlines the company's profile, GEM listing features, and disclaimers [Company Profile](index=1&type=section&id=1.1%20%E5%85%AC%E5%8F%B8%E6%A6%82%E5%86%B5) Yunhong Silicon Xin Group Holdings Limited, incorporated in the Cayman Islands with stock code **8349**, primarily engages in R&D, production, and sales of FRP products and industrial silica sand - The company was incorporated in the Cayman Islands on **January 13, 2016**, and listed on GEM of the Stock Exchange since **January 13, 2017**[9](index=9&type=chunk) - The Group's principal businesses include: (i) research, development, production, and sale of fiberglass reinforced plastic (FRP) products; and (ii) sale of industrial silica sand materials[9](index=9&type=chunk) [GEM Listing Characteristics and Disclaimer](index=1&type=section&id=1.2%20GEM%E4%B8%8A%E5%B8%82%E7%89%B9%E8%89%B2%E4%B8%8E%E5%85%8D%E8%B4%A3%E5%A3%B0%E6%98%8E) This announcement highlights GEM as a listing platform for SMEs with higher investment risks, including disclaimers from the Stock Exchange and company directors to ensure information accuracy - The GEM market is positioned as a listing platform for small and medium-sized enterprises, entailing relatively **higher investment risks** and potential for significant securities market volatility[3](index=3&type=chunk) - The Board confirms that the information contained in this announcement is accurate and complete in all material respects, without misleading or fraudulent elements[4](index=4&type=chunk) [Financial Performance](index=2&type=section&id=%E8%B4%A2%E5%8A%A1%E4%B8%9A%E7%BB%A9) This section presents the Group's condensed consolidated financial statements, including income, balance sheet, equity changes, and cash flows [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=2.1%20%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%8D%9F%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the Group's revenue decreased by **21.21%** year-on-year, gross profit fell by **24.68%**, operating loss widened to **RMB 3,836 thousand**, and net loss expanded by **124.06%** year-on-year Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 12,673 | 16,076 | -21.21% | | Cost of Sales | (10,800) | (13,592) | -20.40% | | Gross Profit | 1,873 | 2,484 | -24.68% | | Other Income | 330 | 117 | 182.05% | | Other Net Gains | 1 | 67 | -98.51% | | Distribution Costs | (657) | (1,964) | -66.55% | | Administrative Expenses | (5,383) | (2,309) | 133.13% | | Operating Loss | (3,836) | (1,605) | 139.00% | | Finance Costs | (54) | (102) | -47.06% | | Loss Before Tax | (3,890) | (1,707) | 127.89% | | Income Tax Expense | (105) | (76) | 38.16% | | Loss for the Period | (3,995) | (1,783) | 124.06% | | Basic and Diluted Loss Per Share (RMB cents) | (1.00) | (0.45) | 122.22% | [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=2.2%20%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E8%B4%A2%E5%8A%A1%E7%8A%B6%E5%86%B5%E8%A1%A8) As of June 30, 2025, the Group's total assets less current liabilities amounted to **RMB 56,021 thousand**, with net assets at **RMB 53,589 thousand**, a decrease from year-end 2024, primarily due to reductions in non-current and net current assets Condensed Consolidated Statement of Financial Position (As of June 30, 2025 and December 31, 2024) | Metric | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | **Non-current Assets** | | | | | Property, Plant and Equipment | 21,716 | 23,322 | -6.97% | | Right-of-use Assets | 1,344 | 2,687 | -50.00% | | **Current Assets** | | | | | Inventories | 1,595 | 2,045 | -22.00% | | Trade and Other Receivables | 42,601 | 36,625 | 16.32% | | Cash and Cash Equivalents | 15,270 | 15,347 | -0.50% | | **Current Liabilities** | | | | | Trade and Other Payables | 21,864 | 15,376 | 42.19% | | Lease Liabilities | 2,154 | 3,519 | -38.79% | | Net Current Assets | 32,961 | 34,007 | -3.07% | | Net Assets | 53,589 | 57,584 | -6.94% | [Condensed Consolidated Statement of Changes in Equity](index=4&type=section&id=2.3%20%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E6%9D%83%E7%9B%8A%E5%8F%98%E5%8A%A8%E8%A1%A8) As of June 30, 2025, the company's total equity was **RMB 53,589 thousand**, a decrease of **RMB 3,995 thousand** from **January 1, 2025**, primarily due to the loss for the period Condensed Consolidated Statement of Changes in Equity (As of June 30, 2025) | Metric | January 1, 2025 (RMB '000) | Loss for the Period and Total Comprehensive Expense (RMB '000) | June 30, 2025 (RMB '000) | | :--- | :--- | :--- | :--- | | Share Capital | 3,600 | – | 3,600 | | Reserves | 53,984 | (3,995) | 49,989 | | Total | 57,584 | (3,995) | 53,589 | - As of **June 30, 2025**, total equity attributable to owners of the company was **RMB 53,589 thousand**, a decrease from **RMB 57,584 thousand** as of **December 31, 2024**[7](index=7&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=5&type=section&id=2.4%20%E7%AE%80%E6%98%8E%E7%BB%BC%E5%90%88%E7%8E%B0%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) For the six months ended June 30, 2025, net cash from operating activities significantly decreased to **RMB 1,311 thousand**, resulting in a net decrease of **RMB 77 thousand** in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 1,311 | 7,875 | -83.34% | | Net Cash from (used in) Investing Activities | 21 | (406) | -105.17% | | Net Cash used in Financing Activities | (1,409) | (1,426) | -1.19% | | Net (Decrease) Increase in Cash and Cash Equivalents | (77) | 6,043 | -101.27% | | Cash and Cash Equivalents at End of Period | 15,270 | 15,125 | 0.96% | [Notes to the Financial Statements](index=6&type=section&id=%E8%B4%A2%E5%8A%A1%E6%8A%A5%E8%A1%A8%E9%99%84%E6%B3%A8) This section provides detailed notes to the financial statements, covering accounting policies, revenue, expenses, and balance sheet items [General Information and Basis of Preparation](index=6&type=section&id=3.1%20%E4%B8%80%E8%88%AC%E8%B5%84%E6%96%99%E4%B8%8E%E7%BC%96%E5%88%B6%E5%9F%BA%E5%87%86) The Group's condensed consolidated interim financial statements are prepared in accordance with GEM Listing Rules and HKFRS, reviewed by the Audit Committee, with consistent accounting policies from the prior year - The Group's principal businesses are the research, development, production, and sale of fiberglass reinforced plastic (FRP) products, and the sale of industrial silica sand materials in the PRC[9](index=9&type=chunk) - The unaudited condensed consolidated results for the six months ended **June 30, 2025**, have been prepared in accordance with the GEM Listing Rules and Hong Kong Financial Reporting Standards, and reviewed by the company's Audit Committee[10](index=10&type=chunk) [Revenue Analysis](index=7&type=section&id=3.2%20%E6%94%B6%E5%85%A5%E5%88%86%E6%9E%90) Total revenue for the period was **RMB 12,673 thousand**, a **21.21%** year-on-year decrease, with FRP product sales significantly down, while silica sand sales grew **575.33%**, becoming a primary revenue source Revenue Composition (For the six months ended June 30) | Product Category | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | FRP Gratings | 2,050 | 9,602 | -78.65% | | Epoxy Wedges | – | 4,901 | -100.00% | | Silica Sand | 10,623 | 1,573 | 575.33% | | **Total Revenue** | **12,673** | **16,076** | **-21.21%** | - Revenue is recognized at a point in time[13](index=13&type=chunk) [Other Income and Other Net Gains](index=7&type=section&id=3.3%20%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E5%87%80%E6%94%B6%E7%9B%8A) Other income for the period increased to **RMB 330 thousand**, mainly due to payables unlikely to be paid, while other net gains significantly decreased Other Income and Other Net Gains (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Other Income** | | | | | Interest Income from Bank Deposits | 21 | 69 | -69.57% | | Disposal of Fixed Assets | – | 47 | -100.00% | | Payables Unlikely to be Paid | 309 | – | N/A | | Miscellaneous | – | 1 | -100.00% | | **Total Other Income** | **330** | **117** | **182.05%** | | **Other Net Gains** | | | | | Net Exchange Gain | 1 | 67 | -98.51% | [Components of Loss Before Tax](index=8&type=section&id=3.4%20%E9%99%A4%E7%A8%8E%E5%89%8D%E4%BA%8F%E6%8D%9F%E6%9E%84%E6%88%90) Loss before tax was primarily impacted by staff costs, depreciation, inventory costs, and R&D expenses; staff and R&D costs decreased, while property, plant and equipment depreciation and auditor's remuneration increased Components of Loss Before Tax (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Finance Costs** | | | | | Bank Charges | 9 | 8 | 12.50% | | Interest on Lease Liabilities | 45 | 94 | -52.00% | | **Staff Costs** | | | | | Salaries, Wages and Other Benefits | 3,824 | 3,953 | -3.26% | | Contributions to Defined Contribution Retirement Schemes | 194 | 312 | -37.82% | | **Other Items** | | | | | Auditor's Remuneration | 1,084 | 1,658 | -34.62% | | Depreciation of Right-of-use Assets | 1,343 | 1,344 | -0.07% | | Depreciation of Property, Plant and Equipment | 1,585 | 539 | 194.06% | | Cost of Inventories Recognized as Expense | 9,006 | 11,727 | -23.20% | | Research and Development Costs | 182 | 571 | -68.13% | [Income Tax Expense](index=9&type=section&id=3.5%20%E6%89%80%E5%BE%97%E7%A8%8E%E5%BC%80%E6%94%AF) Income tax expense for the period was **RMB 105 thousand**, primarily PRC Enterprise Income Tax, with no income tax in Cayman Islands or BVI, and no assessable profits in Hong Kong Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Current Tax | | | | | PRC Enterprise Income Tax | 105 | 76 | 38.16% | - The Group is not subject to any income tax in the Cayman Islands and British Virgin Islands, and is not subject to Hong Kong profits tax[15](index=15&type=chunk) - PRC subsidiaries are subject to PRC Enterprise Income Tax at a **rate of 25%**, and dividends declared to non-resident shareholders are subject to PRC withholding tax at a **rate of 10%**[15](index=15&type=chunk) [Loss Per Share](index=10&type=section&id=3.6%20%E6%AF%8F%E8%82%A1%E4%BA%8F%E6%8D%9F) For the six months ended June 30, 2025, basic loss per share was **RMB 1.00 cent**, an increase from **RMB 0.45 cent** in the prior period, mainly due to increased loss for the period Loss Per Share (For the six months ended June 30) | Metric | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Loss used in Calculating Basic Loss Per Share | (3,995) | (1,783) | 124.06% | | Number of Shares (thousands) | 400,000 | 400,000 | 0.00% | | Basic Loss Per Share (RMB cents) | (1.00) | (0.45) | 122.22% | - Diluted loss per share is not presented as there were no potential ordinary shares outstanding during the reporting period[17](index=17&type=chunk) [Segment Reporting](index=10&type=section&id=3.7%20%E5%88%86%E9%83%A8%E6%8A%A5%E5%91%8A) The Group's business is segmented into FRP and silica sand; FRP business revenue significantly declined with a loss, while silica sand revenue grew substantially and achieved profitability, with all revenue from PRC domestic customers Segment Revenue and Profit (Loss) (For the six months ended June 30, 2025) | Segment | Revenue (RMB '000) | Profit (Loss) (RMB '000) | | :--- | :--- | :--- | | FRP Business | 2,050 | (2,356) | | Silica Sand Business | 10,623 | 1,957 | | Unallocated | – | (3,596) | | **Total** | **12,673** | **(3,995)** | Geographical Location of Revenue from External Customers (For the six months ended June 30) | Customer Type | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | PRC (excluding Hong Kong) | 12,673 | 11,009 | 15.11% | | Overseas Customers | – | 5,067 | -100.00% | | **Total** | **12,673** | **16,076** | **-21.21%** | [Trade and Other Receivables](index=11&type=section&id=3.8%20%E8%B4%B8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E6%94%B6%E6%AC%BE%E9%A1%B9) As of **June 30, 2025**, total trade and other receivables were **RMB 42,601 thousand**, an increase from year-end 2024, with net trade receivables decreasing and net other receivables significantly increasing, mainly due to advance payments for raw material supply Trade and Other Receivables (As of June 30, 2025 and December 31, 2024) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Net Trade and Bills Receivables | 21,693 | 34,920 | -37.88% | | Net Other Receivables | 20,027 | 984 | 1935.26% | | Prepayments and Deposits | 881 | 721 | 22.19% | | **Total** | **42,601** | **36,625** | **16.32%** | - The increase in other receivables was primarily due to the company making advance payments to suppliers to secure high-quality raw material supply channels[22](index=22&type=chunk) Aging Analysis of Trade and Bills Receivables (As of June 30, 2025 and December 31, 2024) | Aging | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | | 0–30 Days | 9,569 | 1,466 | | 31–90 Days | 2,398 | 2,801 | | 91–180 Days | 1,275 | 3,640 | | 181–365 Days | 496 | 900 | | Over 365 Days | 7,955 | 26,113 | [Trade and Other Payables](index=12&type=section&id=3.9%20%E8%B4%B8%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E5%BA%94%E4%BB%98%E6%AC%BE%E9%A1%B9) As of **June 30, 2025**, total trade and other payables were **RMB 21,864 thousand**, a significant increase from year-end 2024, primarily due to growth in trade payables and amounts due to directors Trade and Other Payables (As of June 30, 2025 and December 31, 2024) | Item | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables | 7,033 | 2,651 | 165.30% | | Amounts Due to Directors | 4,803 | 3,489 | 37.65% | | Other Payables | 10,028 | 9,236 | 8.58% | | **Total** | **21,864** | **15,376** | **42.19%** | - The increase in trade payables was mainly due to the outstanding payment for raw silica sand purchased from Liaotong Dayou Silica Sand Co., Ltd., for which the settlement period had not yet matured[24](index=24&type=chunk) - Amounts due to Director Ms. Zhang Yaping were **RMB 4,803 thousand**, unsecured, interest-free, and with no fixed repayment terms[26](index=26&type=chunk) - Amounts due to related party Tongliao Dayou Silica Sand Co., Ltd. for goods were **RMB 2,383 thousand**, unsecured and interest-free[27](index=27&type=chunk) [Share Capital](index=14&type=section&id=3.10%20%E8%82%A1%E6%9C%AC) As of **June 30, 2025**, the company's authorized share capital was **2,000,000 thousand shares**, and issued and fully paid share capital was **400,000 thousand shares**, both at **HKD 0.01 per share**, consistent with year-end 2024 Share Capital Structure (As of June 30, 2025 and December 31, 2024) | Category | June 30, 2025 (thousand shares) | December 31, 2024 (thousand shares) | June 30, 2025 (RMB '000) | December 31, 2024 (RMB '000) | | :--- | :--- | :--- | :--- | :--- | | Authorized Share Capital | 2,000,000 | 2,000,000 | 20,000 (HKD '000) | 20,000 (HKD '000) | | Issued and Fully Paid Share Capital | 400,000 | 400,000 | 3,600 | 3,600 | [Significant Related Party Transactions](index=14&type=section&id=3.11%20%E9%87%8D%E5%A4%A7%E5%85%B3%E8%81%94%E6%96%B9%E4%BA%A4%E6%98%93) Key management personnel remuneration increased this period, and raw silica sand worth **RMB 1,207 thousand** was purchased from Tongliao Dayou Silica Sand Co., Ltd., indirectly controlled by Director Mr. Li Yubao Key Management Personnel Remuneration (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Short-term Employee Benefits | 1,111 | 910 | 22.09% | Related Party Transactions (For the six months ended June 30) | Item | 2025 (RMB '000) | 2024 (RMB '000) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Silica Sand Purchases | 1,207 | 882 | 36.85% | - Raw silica sand was purchased from Tongliao Dayou Silica Sand Co., Ltd., a subsidiary indirectly controlled by Mr. Li Yubao, a director of the company, with pricing policy based on the comparable uncontrolled price method[30](index=30&type=chunk) [Management Discussion and Analysis](index=15&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%82%E8%AE%A8%E8%AE%BA%E5%8F%8A%E5%88%86%E6%9E%90) This section reviews the Group's operational performance, financial position, and future outlook, including sales, costs, liquidity, and risk factors [Review and Outlook](index=15&type=section&id=4.1%20%E5%9B%9E%E9%A1%B9%E5%8F%8A%E5%B1%95%E6%9C%9B) The Group's core businesses are FRP products and industrial silica sand; FRP faces challenges from China's economy, subsidy cancellations, and trade war impacts, but the company is responding with technological improvements, cost control, and market expansion, while silica sand benefits from domestic demand growth - The FRP business faces challenges from China's economic environment, government cancellation of wind power equipment subsidies, and the impact of the China-US trade war, leading to a decline in export business[31](index=31&type=chunk) - The Group plans to enhance competitiveness by improving product technology, upgrading production lines, hiring professional R&D personnel, boosting R&D capabilities, increasing production efficiency, and reducing costs[32](index=32&type=chunk) - The Group will continue to adhere to its policy of promoting its products in countries along the 'Belt and Road' initiative[32](index=32&type=chunk) - Increasing domestic market demand for silica sand materials presents growth opportunities for the silica sand business[33](index=33&type=chunk) [Sales Performance](index=16&type=section&id=4.2%20%E9%94%80%E5%94%AE%E8%A1%A8%E7%8E%B0) Total sales revenue decreased by **21.21%** year-on-year; FRP product sales revenue significantly dropped by **86.0%** with negative gross margin, while silica sand sales surged by **575.33%** with improved gross margin, becoming the Group's main growth driver, and overseas sales became zero, with domestic market share increasing to **100%** Sales Revenue and Gross Profit Margin (For the six months ended June 30) | Product Category | 2025 Sales Revenue (RMB '000) | 2025 Gross Profit Margin (%) | 2024 Sales Revenue (RMB '000) | 2024 Gross Profit Margin (%) | | :--- | :--- | :--- | :--- | :--- | | FRP Gratings | 2,050 | -62.3 | 9,602 | 21.0 | | Epoxy Wedges | – | – | 4,901 | 4.0 | | Silica Sand | 10,623 | 29.6 | 1,573 | 18.2 | | **Total** | **12,673** | **14.8** | **16,076** | **15.5** | - The decrease in FRP sales revenue was mainly due to overcapacity in China, government cancellation of wind power subsidies, and the impact of the China-US trade war[34](index=34&type=chunk) - The significant increase in silica sand sales revenue was primarily due to silica sand being a new business with strong demand and the company's proactive market expansion[35](index=35&type=chunk) - Domestic market sales proportion increased from approximately **68.5%** in the same period of 2024 to **100%** in the same period of 2025, with overseas market sales becoming zero[34](index=34&type=chunk) [Operating Costs and Expenses](index=17&type=section&id=4.3%20%E7%BB%8F%E8%90%A5%E6%88%90%E6%9C%AC%E5%8F%8A%E5%BC%80%E6%94%AF) Distribution costs significantly decreased by **66.5%** due to the contraction of the FRP business, and administrative expenses also fell by **15.6%** due to reduced audit and legal professional fees - Distribution costs decreased by **66.5%** from approximately **RMB 1.96 million** to approximately **RMB 0.66 million**, mainly due to the contraction of the FRP business[38](index=38&type=chunk) - Administrative expenses decreased by **15.6%** from approximately **RMB 6.4 million** to approximately **RMB 5.4 million**, mainly due to reduced audit fees and legal and professional fees[38](index=38&type=chunk) [Operating Results](index=17&type=section&id=4.4%20%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9) For the six months ended June 30, 2025, the Group's net loss expanded to **RMB 4.00 million**, primarily due to the contraction of the FRP business and the reversal of expected credit loss provisions in the prior full year Net Loss (For the six months ended June 30) | Metric | 2025 (RMB million) | 2024 (RMB million) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Net Loss | 4.00 | 1.78 | 124.72% | - The increase in net loss was primarily due to the contraction of the FRP business and the reversal of expected credit loss provisions in the prior full year[39](index=39&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=4.5%20%E6%B5%81%E5%8A%A8%E8%B5%84%E9%87%91%E5%8F%8A%E8%B4%A2%E5%8A%A1%E8%B5%84%E6%BA%90) The Group primarily funds its operations through cash generated from operating activities, with no bank borrowings as of **June 30, 2025** - The Group primarily funds its operations through cash generated from operating activities[40](index=40&type=chunk) - As of **June 30, 2025**, the Group had no bank borrowings[40](index=40&type=chunk) [Capital Structure](index=17&type=section&id=4.6%20%E8%B5%84%E6%9C%AC%E6%9E%B6%E6%9E%84) As of **June 30, 2025**, share capital remained unchanged, while total equity attributable to equity holders of the company slightly decreased Capital Structure (As of June 30, 2025 and December 31, 2024) | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Share Capital | 3.6 | 3.6 | 0.00% | | Total Equity Attributable to Equity Holders | 53.6 | 57.6 | -6.94% | [Exchange Rate Fluctuation Risk](index=18&type=section&id=4.7%20%E6%B1%87%E7%8E%87%E6%B3%A2%E5%8A%A8%E9%A3%8E%E9%99%A9) The Group primarily faces USD foreign exchange risk, but management mitigates this by controlling repayment periods and has not used financial instruments for hedging; foreign exchange risk has a negligible impact on general operations - The Group is primarily exposed to USD foreign exchange risk arising from future commercial transactions and recognized assets and liabilities denominated in non-RMB currencies[43](index=43&type=chunk) - Management mitigates foreign exchange risk by controlling repayment periods and has not used any financial instruments to hedge foreign exchange risk for the six months ended **June 30, 2025**[43](index=43&type=chunk) [Pledge of Assets](index=18&type=section&id=4.8%20%E8%B5%84%E4%BA%A7%E6%8A%B5%E6%8A%BC) As of **June 30, 2025**, the Group had no pledged assets - As of **June 30, 2025**, the Group had no pledged assets[44](index=44&type=chunk) [Significant Investments, Acquisitions and Disposals](index=18&type=section&id=4.9%20%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B5%84%E3%80%81%E6%94%B6%E8%B4%AD%E5%8F%8A%E5%87%BA%E5%94%AE) For the six months ended June 30, 2025, the Group made no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures - The Group held no significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures for the six months ended **June 30, 2025**[45](index=45&type=chunk) [Employees and Remuneration Policy](index=18&type=section&id=4.10%20%E9%9B%87%E5%91%98%E5%8F%8A%E8%96%AA%E9%85%AC%E6%94%BF%E7%AD%96) As of **June 30, 2025**, the Group had **61 employees** with total staff costs of **RMB 4.0 million**; remuneration policy is based on qualifications, position, seniority, and performance, offering retirement benefits and training Employees and Remuneration (For the six months ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Number of Employees | 61名 | 60名 | | Total Staff Costs (RMB million) | 4.0 | 4.3 | - Remuneration is determined based on employees' respective qualifications, positions, and seniority, with year-end discretionary bonuses awarded based on the Group's and individual employee's performance[46](index=46&type=chunk) [Other Information](index=19&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers additional corporate information, including dividends, post-reporting events, shareholdings, and corporate governance practices [Dividends](index=19&type=section&id=5.1%20%E8%82%A1%E6%81%AF) The Board does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of any interim dividend for the six months ended **June 30, 2025**[47](index=47&type=chunk) [Events After Reporting Period](index=19&type=section&id=5.2%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%90%8E%E4%BA%8B%E9%A1%B9) As of the date of this announcement, the Group had no significant events after **June 30, 2025** - There were no significant events after **June 30, 2025**, and up to the date of this announcement[48](index=48&type=chunk) [Directors' and Chief Executive's Interests in Shares of the Company](index=19&type=section&id=5.3%20%E8%91%A3%E4%BA%8B%E5%8F%8A%E4%B8%BB%E8%A6%81%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%91%98%E4%BA%8E%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E7%9A%84%E6%9D%83%E7%9B%8A) As of **June 30, 2025**, Mr. Li Yubao held **40.65%** of the company's shares through controlled corporations, being the only director among key executives to disclose share interests Directors' and Chief Executive's Long Position in Shares of the Company (As of June 30, 2025) | Name | Capacity/Nature of Interest | Number of Shares Held/Interested | Percentage of Interest in the Company | | :--- | :--- | :--- | :--- | | Mr. Li Yubao | Interest in Controlled Corporation | 162,600,000 | 40.65% | - Mr. Li Yubao is the ultimate controlling shareholder of LF INTERNATIONAL PTE. LTD. and Yunhong Group Co., Ltd., which together hold **162,600,000 shares** of the company[49](index=49&type=chunk) [Major Shareholders' Interests in Shares of the Company](index=21&type=section&id=5.4%20%E4%B8%BB%E8%A6%81%E8%82%A1%E4%B8%9C%E4%BA%8E%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E4%BB%BD%E7%9A%84%E6%9D%83%E7%9B%8A) As of **June 30, 2025**, LFS, LFB, Yunhong, and Mr. Huang Xuechao were major shareholders of the company, with LFS and LFB indirectly controlled by Mr. Li Yubao Major Shareholders' Interests in Shares of the Company (As of June 30, 2025) | Name/Designation | Capacity/Nature of Interest | Number of Ordinary Shares Held/Interested | Percentage of Interest in the Company | | :--- | :--- | :--- | :--- | | LFS | Interest in Controlled Corporation | 162,600,000 | 40.65% | | LFB | Beneficial Owner | 122,600,000 | 30.65% | | Yunhong | Beneficial Owner | 40,000,000 | 10.00% | | Mr. Huang Xuechao | Beneficial Owner | 44,880,000 | 11.22% | - LFB is wholly-owned by LFS, which is wholly-owned by Mr. Li. LFS holds a **70%** interest in Yunhong, which beneficially owns **10%** of the company's shares[57](index=57&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=21&type=section&id=5.5%20%E8%B4%AD%E4%B9%B0%E3%80%81%E5%87%BA%E5%94%AE%E6%88%96%E8%B5%8E%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E7%9A%84%E4%B8%8A%E5%B8%82%E8%AF%81%E5%88%B8) For the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities, and there were no treasury shares - For the six months ended **June 30, 2025**, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[55](index=55&type=chunk) - As of **June 30, 2025**, the company had no treasury shares[56](index=56&type=chunk) [Competing Interests](index=22&type=section&id=5.6%20%E7%AB%9E%E4%BA%89%E6%9D%83%E7%9B%8A) Directors confirm that for the six months ended June 30, 2025, no director or their close associates held any business interests competing or potentially competing with the Group's business - Directors confirm that for the six months ended **June 30, 2025**, no director or their respective close associates held any interest in any business directly or indirectly competing or potentially competing with the Group's business[58](index=58&type=chunk) [Directors' Securities Transactions](index=22&type=section&id=5.7%20%E8%91%A3%E4%BA%8B%E7%9A%84%E8%AF%81%E5%88%B8%E4%BA%A4%E6%98%93) All directors have confirmed compliance with the dealing rules for directors' securities transactions as set out in the GEM Listing Rules for the six months ended June 30, 2025 - All directors have confirmed compliance with the dealing rules as set out in Rules **5.48** to **5.67** of the GEM Listing Rules for the six months ended **June 30, 2025**[59](index=59&type=chunk) [Corporate Governance Practices](index=22&type=section&id=5.8%20%E4%BC%81%E4%B8%9A%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A7%84) The Group is committed to maintaining high corporate governance standards and has complied with all applicable code provisions in Appendix C1 Section 2 of the GEM Listing Rules for the six months ended June 30, 2025 - The company has adopted the Corporate Governance Code as set out in Appendix C1 Section **2** of the GEM Listing Rules as its own corporate governance code[60](index=60&type=chunk) - For the six months ended **June 30, 2025**, the company has complied with all applicable code provisions contained in the Corporate Governance Code[60](index=60&type=chunk) [Audit Committee](index=22&type=section&id=5.9%20%E5%AE%A1%E6%A0%B8%E5%A7%94%E5%91%98%E4%BC%9A) The Audit Committee, comprising three independent non-executive directors, is responsible for reviewing and overseeing financial reporting, internal controls, and risk management, and has reviewed the Group's unaudited results for the six months ended June 30, 2025 - The Audit Committee comprises three independent non-executive directors: Mr. Wu Shiliang (Chairman), Mr. Wen Peng, and Ms. Long Mei[61](index=61&type=chunk) - The Audit Committee's primary responsibilities include reviewing and overseeing financial reporting processes, internal control, and risk management systems, and it has reviewed the Group's unaudited results for the six months ended **June 30, 2025**[61](index=61&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=23&type=section&id=5.10%20%E5%88%8A%E5%8F%91%E4%B8%AD%E6%9C%9F%E4%B8%9A%E7%BB%A9%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E6%8A%A5%E5%91%8A) This interim results announcement has been published on the Stock Exchange and company websites, and the interim report will be dispatched to shareholders and published in due course - This interim results announcement has been published on the Stock Exchange website (www.hkexnews.hk) and the company's website (www.nantongrate.com)[62](index=62&type=chunk) - The company's interim report for the six months ended **June 30, 2025**, will be dispatched to shareholders and published on the aforementioned websites in due course[62](index=62&type=chunk) [Resignation of Executive Director](index=23&type=section&id=5.11%20%E6%89%A7%E8%A1%8C%E8%91%A3%E4%BA%8B%E8%BE%9E%E4%BB%BB) Ms. Jin Dan resigned as an executive director effective **August 25, 2025**, due to other work commitments, confirming no disagreement with the Board - Ms. Jin Dan resigned as an executive director effective **August 25, 2025**, due to other work commitments[63](index=63&type=chunk) - Ms. Jin has confirmed that she has no disagreement with the Board and there are no other matters relating to her resignation that need to be brought to the attention of the company's shareholders and the Stock Exchange[63](index=63&type=chunk)

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 香港，2025年8月13日 於本公告日期，執行董事為李玉保先生、張亞平女士、施冬英女士及金丹女士；及 獨立非執行董事為龍梅女士、文鵬先生及吳世良先生。 本公告載有根據香港聯合交易所有限公司（「聯交所」）GEM證券上市規則須提供 有關本公司資料的詳情，董事就本公告共同及個別承擔全部責任。董事在作出一 切合理查詢後確認，就彼等所知及所信，本公告所載的資料在各重大方面乃準確 完整，且無誤導或欺詐成份，亦概無遺漏任何其他事宜致使本公告或當中所載任 何陳述產生誤導。 本公告將由刊登日期起一連7日於聯交所網站(www.hkexnews.hk)「最新上市公司公 告」頁面刊載，亦將於本公司網站(www.nantongrate.com)刊載。 承董事會命 運鴻硅鑫集團控股有限公司 主席 李玉保 （於 開 曼 群 島 註 冊 ...

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]