Financial Performance - For the six months ended June 30, 2022, the company reported revenue of RMB 23,341,000, a decrease of 32.5% compared to RMB 34,819,000 for the same period in 2021[4] - Gross profit for the same period was RMB 5,709,000, down 33.5% from RMB 8,559,000 in the prior year[4] - The company recorded a net loss attributable to owners of the company of RMB 163,000 for the six months ended June 30, 2022, compared to a profit of RMB 579,000 in the same period of 2021[4] - The company reported a pre-tax profit of RMB 5,202,000 for the six months ended June 30, 2022, compared to RMB 6,111,000 for the same period in 2021, reflecting a decrease of 14.9%[21] - The group recorded a net loss of approximately RMB 163,000 for the six months ended June 30, 2022, compared to a net profit of approximately RMB 579,000 for the same period in 2021[65] Cash Flow and Assets - Operating cash flow for the six months ended June 30, 2022, was RMB 1,832,000, a significant improvement from a cash outflow of RMB 6,972,000 in the prior year[10] - Total assets as of June 30, 2022, were RMB 78,512,000, slightly down from RMB 78,667,000 as of December 31, 2021[6] - The company had cash and cash equivalents of RMB 9,566,000 at the end of the reporting period, an increase from RMB 8,220,000 at the beginning of the period[10] - Total assets as of June 30, 2022, were approximately RMB 107.9 million, a slight decrease from RMB 110.6 million as of December 31, 2021[66] - Total liabilities as of June 30, 2022, were approximately RMB 39.8 million, down from RMB 42.3 million as of December 31, 2021[66] Expenses - The company’s administrative expenses increased to RMB 5,668,000 for the six months ended June 30, 2022, compared to RMB 4,540,000 in the same period of 2021, reflecting a rise of 24.8%[4] - The company incurred research and development costs of RMB 1,223,000 for the six months ended June 30, 2022, compared to RMB 1,472,000 for the same period in 2021, indicating a decrease of 16.9%[21] - The company’s distribution costs decreased to RMB 801,000 for the six months ended June 30, 2022, down from RMB 2,140,000 in the prior year, a reduction of 62.6%[4] Revenue Breakdown - For the six months ended June 30, 2022, the total revenue from the sale of fiberglass products was RMB 23,341,000, a decrease of 32.9% compared to RMB 34,819,000 for the same period in 2021[18] - Revenue from fiberglass grating products was RMB 9,279,000 for the six months ended June 30, 2022, down 53.0% from RMB 19,730,000 in the same period of 2021[18] - Domestic market sales decreased by approximately 21.0% to about RMB 17.9 million, accounting for approximately 76.6% of total sales for the six months ended June 30, 2022, an increase of 11.6 percentage points from 65.0% in the same period of 2021[52] - Sales to the Chinese market decreased by approximately 21.0% from RMB 22.6 million to RMB 17.9 million, primarily due to a significant reduction in sales of fiberglass grating products[60] - Sales to the US market decreased by approximately 76.6% from RMB 5.6 million to RMB 1.3 million, mainly due to increased tariffs and adverse impacts from the COVID-19 pandemic[61] Market Conditions - The overall economic impact of COVID-19 lockdowns in major cities, particularly Shanghai, resulted in a GDP growth of only 2.5% in the first half of 2022, down from 12.7% in the same period of 2021[49] - The management expects steady growth in the overall fiberglass market in China, driven by its potential applications in various industries[47] - The company is closely monitoring the developments of the COVID-19 pandemic and may adjust strategies to explore new revenue sources to mitigate business risks[51] Shareholder Information - Mr. Li holds 163,600,000 shares, representing 40.9% of the company's equity, through controlled corporations[78] - Major shareholders include LFS and LFB, each holding 123,600,000 shares, accounting for 30.9% of the company's equity[84] Corporate Governance - The company has adopted the GEM Listing Rules as a code of conduct for directors trading in the company's securities, and confirmed compliance during the reporting period[93] - The company has complied with all applicable corporate governance code provisions as of June 30, 2022[94] - The audit committee was established on December 16, 2016, and consists of three independent non-executive directors[95] - The main responsibilities of the audit committee include reviewing financial reporting procedures and internal controls, as well as risk management systems[97]

Financial Performance - For the three months ended March 31, 2022, the company reported revenue of RMB 13,094,000, a decrease of 3.9% from RMB 13,623,000 in the same period of 2021[4] - The gross profit for the same period was RMB 3,325,000, representing a gross margin of 25.4%, compared to RMB 3,155,000 and a gross margin of 23.2% in Q1 2021[4] - Operating profit for Q1 2022 was RMB 411,000, a significant improvement from an operating loss of RMB 318,000 in Q1 2021[4] - The company achieved a profit before tax of RMB 405,000, compared to a loss before tax of RMB 381,000 in the previous year[4] - The net profit for the period was RMB 126,000, a recovery from a net loss of RMB 468,000 in Q1 2021[4] - Basic and diluted earnings per share for Q1 2022 were RMB 0.03, compared to a loss per share of RMB 0.12 in the same quarter of 2021[4] - The company reported a profit attributable to owners of the company of RMB 126,000 for the three months ended March 31, 2022, compared to a loss of RMB 468,000 for the same period in 2021, resulting in basic earnings per share of RMB 0.03[24] Revenue Sources - The company’s sales of fiberglass products included RMB 4,013,000 from fiberglass grating and RMB 9,081,000 from epoxy wedge strips[14] - The decrease in sales revenue was primarily due to a reduction in revenue from the sale of fiberglass grating products, which was partially offset by a significant increase of approximately 31.4% in revenue from the sale of epoxy wedge products during the same period[30] - Sales of epoxy wedge products became the largest revenue source, accounting for approximately 69.4% of total revenue, with revenue increasing by RMB 2.2 million or 31.4% to RMB 9.1 million[43] Market Performance - Domestic market sales increased approximately 15.8% to about RMB 10.4 million, representing 79.1% of total sales for the period, up from 65.6% in the same period last year[36] - Sales to the Chinese market increased by approximately 15.8% from RMB 8.9 million for the three months ended March 31, 2021, to RMB 10.3 million for the three months ended March 31, 2022, primarily due to a significant increase in sales of epoxy wedge products to Chinese customers[49] - Sales to the US market decreased by approximately 56.6% from RMB 1.9 million for the three months ended March 31, 2021, to RMB 0.8 million for the three months ended March 31, 2022, mainly due to rising tariffs and the adverse impact of the COVID-19 pandemic on the US economy and market conditions[49] - Sales to the UK market decreased by approximately 28.4% from RMB 1.6 million for the three months ended March 31, 2021, to RMB 1.2 million for the three months ended March 31, 2022, primarily due to a reduction in sales orders from major customers in the UK market due to the COVID-19 pandemic[49] - Sales to other regions decreased by approximately 35.7% from RMB 1.2 million for the three months ended March 31, 2021, to RMB 0.7 million for the three months ended March 31, 2022, mainly due to a decrease in sales orders from Denmark and Taiwan due to the COVID-19 pandemic[49] Cost Management - Distribution costs significantly decreased by approximately RMB 458,000 or 48.3% from RMB 948,000 for the three months ended March 31, 2021, to RMB 490,000 for the three months ended March 31, 2022, primarily due to reductions in wages and customs fees[51] - Administrative expenses increased by approximately RMB 422,000 or 17.8% from RMB 2.4 million for the three months ended March 31, 2021, to RMB 2.8 million for the three months ended March 31, 2022, mainly due to increased employee costs and leasing expenses[51] - Financial costs significantly decreased by approximately RMB 57,000 or 90.5% from RMB 63,000 for the three months ended March 31, 2021, to RMB 6,000 for the three months ended March 31, 2022, primarily due to the repayment of bank loans in the year ended December 31, 2021[51] Research and Development - The company continues to focus on research and development, production, and sales of fiberglass products in China[12] - Research and development costs for the three months ended March 31, 2022, amounted to RMB 450,000, a decrease from RMB 900,000 for the same period in 2021[30] - The company plans to enhance product technology and recruit senior talent to achieve goals in product development and market expansion[33] Future Outlook - The company expects steady growth in the overall fiberglass market in China, driven by the material's superior properties and potential applications in various industries[29] - The company has identified significant potential for fiberglass composite products in sectors such as aerospace, energy, and transportation, indicating a strategic focus on market expansion[29] - The company remains cautiously optimistic about long-term business prospects, closely monitoring the impact of COVID-19 on the industry[35] - The company aims to explore new revenue sources to mitigate business risks amid an uncertain political and economic environment[35] - The company will continue to participate in bidding for potential projects in both domestic and overseas markets[33] Shareholder Information - As of March 31, 2022, Mr. Li holds 163,600,000 shares, representing 40.9% of the company, through controlled corporations[55] - Major shareholders include LFS and LFB, each holding 123,600,000 shares, representing 30.9% of the company[61] - No purchases, sales, or redemptions of the company's listed securities occurred during the three months ended March 31, 2022[64] - The company confirmed that there were no interests held by directors or their close associates in any business that competes directly or indirectly with the group's operations during the reporting period[65] Audit and Review - The audit committee reviewed the unaudited performance of the group for the three months ended March 31, 2022[69]

Financial Performance - For the three months ended March 31, 2022, the company reported revenue of RMB 13,094,000, a decrease of 3.9% from RMB 13,623,000 in the same period of 2021[4] - Gross profit for the same period was RMB 3,325,000, representing an increase of 5.4% compared to RMB 3,155,000 in the previous year[4] - Operating profit for the first quarter of 2022 was RMB 411,000, a significant recovery from an operating loss of RMB 318,000 in the same period of 2021[4] - The company recorded a profit before tax of RMB 405,000, compared to a loss before tax of RMB 381,000 in the prior year[4] - The basic and diluted earnings per share for the period was RMB 0.03, a turnaround from a loss per share of RMB 0.12 in the same quarter of 2021[4] - The company's pre-tax profit for the three months ended March 31, 2022, was RMB 126,000, compared to a loss of RMB 468,000 for the same period in 2021[26] - The company’s operating performance improved from a loss of approximately RMB 468,000 for the three months ended March 31, 2021, to a profit of approximately RMB 126,000 for the three months ended March 31, 2022, primarily due to an increase in gross margin from product sales, rental income from investment properties, and cost reduction efforts[48] Revenue Sources - For the three months ended March 31, 2022, the company recorded sales revenue of approximately RMB 131 million, a decrease of about RMB 0.5 million or 3.9% compared to RMB 136 million for the same period in 2021[33] - The decrease in sales revenue was primarily due to a reduction in revenue from fiberglass grating products, which was partially offset by a significant increase of approximately 31.4% in revenue from epoxy wedge products during the same period[33] - Revenue from epoxy wedge products, the largest revenue source, increased by approximately RMB 2.2 million or 31.4% to about RMB 9.1 million, representing approximately 69.4% of total revenue for the three months ended March 31, 2022[39] - Domestic market sales increased by approximately 15.8% to about RMB 10.4 million, accounting for approximately 79.1% of total sales for the three months ended March 31, 2022, up 13.5 percentage points from 65.6% in the same period of 2021[36] - Sales to the Chinese market increased by approximately 15.8% to about RMB 10.3 million, driven by significant sales of epoxy wedge products[45] - Sales to the US market decreased by approximately 56.6% to about RMB 0.8 million, primarily due to rising tariffs and the adverse impact of the COVID-19 pandemic[45] Expenses and Costs - Administrative expenses rose to RMB 2,797,000 from RMB 2,375,000, indicating increased operational costs[4] - Employee costs, including director remuneration, amounted to RMB 2.518 million for the three months ended March 31, 2022, down from RMB 3 million in the same period of 2021, representing a decrease of approximately 16%[25] - Research and development costs for the three months ended March 31, 2022, were RMB 450,000, a decrease of 50% from RMB 900,000 for the same period in 2021[33] - Distribution costs significantly decreased by approximately RMB 458,000 or 48.3% to about RMB 490,000 for the three months ended March 31, 2022[46] - Administrative expenses increased by approximately RMB 422,000 or 17.8% to about RMB 2.8 million, mainly due to rising employee costs and rental expenses[46] - The company incurred a net foreign exchange loss of RMB 107,000, an improvement from a loss of RMB 154,000 in the same period last year[15] - The company’s financial costs, including bank loan interest and lease liabilities, totaled RMB 6,000 for the three months ended March 31, 2022, down from RMB 63,000 in the same period of 2021[21] Market Outlook and Strategy - The company continues to focus on the research, development, production, and sales of fiberglass products in China[12] - The company expects steady growth in the overall fiberglass market in China, driven by the material's superior performance and potential applications in various industries[32] - The company plans to enhance product technology and hire senior talent to achieve goals in product development and market expansion[35] - The group remains cautiously optimistic about long-term business prospects, focusing on stable and effective business development[35] - The company’s gross profit margin is expected to improve as it expands its product offerings and market reach in the fiberglass sector[32] Corporate Governance - The financial results for the period are unaudited but have been reviewed by the company's audit committee[10] - The audit committee reviewed the unaudited results for the three months ended March 31, 2022, ensuring oversight of financial reporting and internal controls[70] - The board confirmed compliance with the corporate governance code as per GEM listing rules during the three months ended March 31, 2022[67] Shareholder Information - As of March 31, 2022, Mr. Li Yubao holds 163,600,000 shares, representing 40.9% of the company's equity, through controlled corporations[49] - Major shareholders include LFS and LFB, each holding 123,600,000 shares (30.9%), and Yunhong holding 40,000,000 shares (10.0%) as of March 31, 2022[60] - The company did not purchase, sell, or redeem any of its listed securities during the three months ended March 31, 2022[64]

Financial Performance - For the year ended December 31, 2021, the company recorded sales revenue of approximately RMB 786 million, a decrease of about 19.4% compared to 2020[11]. - The company reported a net loss of approximately RMB 20 million for the year ended December 31, 2021, a significant decline from a net profit of approximately RMB 55 million for the year ended December 31, 2020[11]. - The group recorded a consolidated revenue of approximately RMB 786.2 million for the year ended December 31, 2021, a decrease of approximately RMB 190 million or 19.4% compared to the year ended December 31, 2020[26]. - Domestic market sales decreased from approximately RMB 644.4 million for the year ended December 31, 2020, to approximately RMB 517.5 million for the year ended December 31, 2021, representing a decline of about 19.8%[26]. - The company recorded a net loss of approximately RMB 2.0 million for the year ended December 31, 2021, a significant decline from a net profit of approximately RMB 5.5 million for the year ended December 31, 2020, primarily due to a 19.4% decrease in product sales to approximately RMB 78.6 million[38]. - The gross profit margin for products sold decreased by approximately 6.6 percentage points due to rising raw material costs caused by global supply chain disruptions from the COVID-19 pandemic[38]. Market Challenges - The company faced challenges due to the COVID-19 pandemic, including supply chain disruptions and increased raw material costs, impacting its financial performance[11]. - The group's sales revenue in the US decreased by approximately 16.3% compared to 2020 due to increased import tariffs and the negative impact of the COVID-19 pandemic on the US economy[13]. - Sales to the US market decreased by approximately 16.3% to about RMB 125.2 million in 2021, primarily due to increased import tariffs and the adverse impact of the COVID-19 pandemic[35]. Corporate Governance - The board of directors underwent changes effective June 30, 2021, with new appointments and resignations impacting the governance structure[4]. - The board emphasized the importance of corporate governance, adhering to GEM listing rules and ensuring compliance with regulatory standards[80]. - The independent non-executive directors bring diverse expertise to the board, enhancing decision-making processes and ensuring shareholder interests are prioritized[84]. - The board has adopted a diversity policy for its members, considering factors such as gender, age, cultural background, and professional experience[85]. - The audit committee, established on December 16, 2016, consists of three independent non-executive directors and is responsible for overseeing the integrity of financial statements and compliance with regulations[96]. Environmental Impact - The group is committed to minimizing any negative environmental impacts during production and has not faced significant violations of environmental laws in the year ended December 31, 2021[23]. - Total greenhouse gas emissions increased by approximately 39% in the fiscal year ending December 31, 2021, primarily due to a shift in heating methods from steam to electricity[150]. - The company aims to gradually reduce greenhouse gas emission density in the fiscal year 2022, using the fiscal year 2021 as a baseline[151]. - The company has implemented various measures to reduce emissions, including using environmentally friendly machinery and optimizing office lighting[148]. Employee Management - The company had 107 employees as of December 31, 2021, down from 133 in 2020, with total employee costs amounting to approximately RMB 14.1 million[46]. - The overall employee turnover rate was approximately 59% in 2021, significantly higher than 16% in 2020, primarily due to workforce streamlining[165]. - The company encourages continuous learning and provides various training programs for employees to enhance their skills[169]. - The company provided at least 4 hours of safety training and 4 hours of occupational hazard and safety compliance training for each employee in the production department for the year ended December 31, 2021[170]. Strategic Direction - The company aims to enhance its corporate image and align with its new strategic direction following the name change[9]. - The group plans to enhance product recognition through improved technology and maintain effective cost control to strengthen competitiveness[15]. - The group aims to recruit senior talent to achieve its goals in product R&D and market expansion[15]. - The company plans to expand its market presence in Southeast Asia, targeting a 10% market share within the next two years[80]. Compliance and Risk Management - The company is committed to enhancing compliance training and has not identified any significant legal non-compliance issues related to bribery, extortion, fraud, or money laundering for the year ended December 31, 2021[179]. - The board is responsible for establishing and maintaining an effective risk management and internal control system to achieve business objectives and safeguard assets[117]. - The risk management process includes annual risk identification and analysis, assessing the consequences and likelihood of risks, and developing risk management plans[118]. Product Development - The group's R&D expenditure for developing new products and innovative technology solutions was approximately RMB 4.8 million for the year ended December 31, 2021, down from RMB 6.0 million in 2020[21]. - New product development initiatives are underway, with an investment of HKD 50 million allocated for R&D in innovative technologies[80].

Financial Performance - The total revenue for the year ended December 31, 2021, was RMB 78,624,000, a decrease of 19.5% from RMB 97,608,000 in 2020[7]. - The gross profit for the same period was RMB 21,022,000, down 35.3% from RMB 32,487,000 in 2020[7]. - The net loss for the year was RMB 2,043,000 compared to a profit of RMB 5,549,000 in 2020, indicating a significant decline in profitability[7]. - The total comprehensive income for the year was RMB 9,089,000, an increase from RMB 5,549,000 in 2020, primarily due to revaluation gains[5]. - The company reported a basic and diluted loss per share of RMB 0.51 for the year, compared to earnings of RMB 1.39 per share in 2020[6]. - The company incurred a total tax expense of RMB 2,989,000 in 2021, down from RMB 4,207,000 in 2020, representing a decrease of approximately 29.0%[51]. - The company recorded a net loss of approximately RMB 2.0 million for the year ended December 31, 2021, compared to a net profit of approximately RMB 5.5 million for the year ended December 31, 2020[121]. Assets and Liabilities - The company's total assets as of December 31, 2021, were RMB 78,667,000, an increase from RMB 63,934,000 in 2020[10]. - The net asset value increased to RMB 68,246,000 from RMB 59,090,000 in the previous year, reflecting a growth of 15.5%[10]. - The cash and cash equivalents decreased to RMB 8,220,000 from RMB 16,545,000 in 2020, indicating a reduction in liquidity[10]. - The company had no contingent liabilities as of December 31, 2021[124]. - The company maintained a capital structure with total equity of approximately RMB 68,246,000 as of December 31, 2021, unchanged from the previous year[129]. Revenue Breakdown - Revenue from the sale of fiberglass grating was RMB 41,188,000 in 2021, down from RMB 45,562,000 in 2020, representing a decline of 9.9%[26]. - Revenue from phenolic grating decreased to RMB 160,000 in 2021 from RMB 250,000 in 2020, a drop of 36%[26]. - Revenue from epoxy wedge strips was RMB 37,276,000 in 2021, down from RMB 51,796,000 in 2020, reflecting a decrease of 28.2%[26]. - Total revenue from local customers in mainland China decreased to RMB 51,675,000 in 2021 from RMB 64,434,000 in 2020, representing a decline of approximately 19.8%[35]. - Total revenue from overseas customers decreased to RMB 26,949,000 in 2021 from RMB 33,174,000 in 2020, reflecting a decline of about 18.8%[35]. Operational Efficiency - The company’s operating profit before tax was RMB 946,000, down from RMB 9,756,000 in 2020, showing a decline in operational efficiency[7]. - Research and development costs were RMB 4,834,000 in 2021, down from RMB 6,000,000 in 2020, indicating a reduction of approximately 19.4%[42]. - Employee costs, including director remuneration, increased to RMB 14,105,000 in 2021 from RMB 13,390,000 in 2020, reflecting an increase of about 5.3%[40]. - The company recognized a provision for expected credit losses of RMB 274,000 for the year ended December 31, 2021, compared to RMB 1,426,000 in 2020, indicating a decrease of approximately 80.8%[87]. Market and Product Strategy - The company plans to continue its focus on research and development of fiberglass products in China, leveraging its subsidiary Nantong Meigu Composite Materials Co., Ltd.[13]. - The company aims to strengthen its market presence by promoting fiberglass products in countries along the "Belt and Road" initiative[103]. - The company plans to enhance product recognition through improved technology and effective cost control while hiring additional talent to support growth and expansion[101]. - The company expects steady growth in the overall fiberglass market in China in the coming years, driven by increased applications in various industries[100]. Compliance and Governance - The company complied with the corporate governance code as stipulated in the GEM Listing Rules during the fiscal year ended December 31, 2021[138]. - The audit committee, consisting of three independent non-executive directors, reviewed the accounting principles and practices adopted by the group[141].

Financial Performance - For the three months ended September 30, 2021, the company's revenue was RMB 20,255 thousand, a decrease of 36.6% compared to RMB 31,930 thousand for the same period in 2020[4] - The gross profit for the three months ended September 30, 2021, was RMB 5,928 thousand, down 44.5% from RMB 10,619 thousand in the same period of 2020[4] - The operating profit for the nine months ended September 30, 2021, was RMB 2,075 thousand, a decline of 79.5% compared to RMB 10,082 thousand for the same period in 2020[4] - The net profit for the three months ended September 30, 2021, was a loss of RMB 54 thousand, compared to a profit of RMB 3,112 thousand in the same period of 2020[4] - The total comprehensive income attributable to owners of the company for the nine months ended September 30, 2021, was RMB 525 thousand, down 91.3% from RMB 6,035 thousand for the same period in 2020[4] - The company reported a pre-tax profit of RMB 525,000 for the nine months ended September 30, 2021, compared to RMB 6,035,000 for the same period in 2020, representing a decrease of approximately 91.3%[26] - Total sales revenue for the nine months ended September 30, 2021, was approximately RMB 55.1 million, a decrease of about 20.1% from RMB 68.9 million for the same period in 2020[49] - The pre-tax profit decreased by approximately 80.8% to about RMB 1.9 million from RMB 9.9 million in the previous year[49] Sales Performance - The sales of fiberglass products for the three months ended September 30, 2021, were RMB 20,255 thousand, a decrease of 36.6% compared to RMB 31,930 thousand in the same period of 2020[15] - The company reported a decrease in sales of phenolic grating products from RMB 18,056 thousand in the three months ended September 30, 2020, to RMB 11,172 thousand in the same period of 2021[15] - Domestic market sales decreased by approximately 18.8% to about RMB 346 million, accounting for approximately 62.8% of total sales, an increase of 1 percentage point from 61.8% in the same period of 2020[33] - The revenue from fiberglass grating products, the largest revenue source, was approximately RMB 288 million, a decrease of 9.7% from approximately RMB 311 million in the same period of 2020[37] - The revenue from epoxy wedge products decreased by approximately RMB 108 million or 29.2% to about RMB 261 million, mainly due to cautious ordering from downstream customers facing rising raw material costs[38] - Sales to the Chinese market decreased by approximately 18.8% to about RMB 34.6 million from RMB 42.6 million in the previous year[43] - Sales to the US market decreased by approximately 15.8% to about RMB 9.7 million from RMB 11.5 million in the previous year[44] - Sales to the UK market decreased by approximately 36.9% to about RMB 6.1 million from RMB 9.7 million in the previous year[44] - Sales to other regions decreased by approximately 9.1% to about RMB 4.7 million from RMB 5.1 million in the previous year[44] Cost and Expenses - The gross margin for fiberglass grating products decreased by 7.6 percentage points to 25.4%, primarily due to increased raw material costs caused by global supply chain disruptions[37] - The average selling price of fiberglass grating products decreased by approximately 9.3% to RMB 255.8 per square meter, while sales volume slightly decreased by about 0.5%[40] - The gross margin for epoxy wedge products decreased by 8.8 percentage points to 27.3%, attributed to increased raw material costs and reduced production volume[38] - Administrative expenses decreased by approximately RMB 1.6 million or 14.8% to about RMB 9.1 million from RMB 10.6 million in the previous year[47] - Sales and distribution costs increased by approximately RMB 150,000 or 4.7% to about RMB 3.4 million from RMB 3.2 million in the previous year[46] - The company reported a total tax expense of RMB 1,380,000 for the nine months ended September 30, 2021, compared to RMB 3,876,000 for the same period in 2020, a decrease of approximately 64.5%[22] - The company’s total depreciation and amortization expenses for the nine months ended September 30, 2021, were RMB 42,023,000, down from RMB 46,018,000 in the same period of 2020, indicating a decrease of approximately 8.7%[19] Research and Development - Research and development costs for the nine months ended September 30, 2021, amounted to RMB 3,908,000, a decrease of 8% from RMB 4,249,000 in the same period of 2020[19][20] - The company continues to focus on the research, development, production, and sales of fiberglass products in China[14] - The company plans to enhance production technology and recruit talent to maintain competitiveness amid global economic uncertainties[32] - The overall fiberglass market in China is expected to steadily rise as the market matures and understanding of the material improves[29] - The company aims to expand its applications in aerospace, energy, and transportation sectors, leveraging the potential of fiberglass composite materials[29] Corporate Governance - The company changed its name from "MEIGU Technology Holding Group Limited" to "Yunhong Guixin Group Holdings Limited" effective August 30, 2021[59] - As of September 30, 2021, Mr. Li holds 163,600,000 shares, representing 40.9% of the company's equity[62] - Major shareholders include LFS and LFB, each holding 123,600,000 shares, accounting for 30.9% of the equity[76] - The company did not engage in any related party transactions or continuous related party transactions during the nine months ending September 30, 2021[80] - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the nine months ending September 30, 2021[81] - The company confirmed that there are no competing interests from its major shareholders or directors as of September 30, 2021[82] - The company has adopted the GEM Listing Rules regarding the code of conduct for directors' securities transactions, confirming compliance for the nine months ended September 30, 2021[83] - The company has adhered to the corporate governance code as per GEM Listing Rules Appendix 15 for the nine months ended September 30, 2021[85] - The Audit Committee, established on December 16, 2016, consists of three independent non-executive directors and is responsible for reviewing financial reporting procedures and risk management systems[86] - The unaudited performance of the group for the nine months ended September 30, 2021, has been reviewed by the Audit Committee[86]

Financial Performance - Revenue for the three months ended June 30, 2021, was RMB 21,196 thousand, a decrease of 11.8% compared to RMB 23,977 thousand for the same period in 2020[4] - Gross profit for the six months ended June 30, 2021, was RMB 8,559 thousand, down 35.5% from RMB 13,305 thousand in the same period of 2020[4] - The net loss for the six months ended June 30, 2021, was RMB 1,484 thousand, compared to a profit of RMB 4,945 thousand for the same period in 2020[4] - Total revenue for the six months ended June 30, 2021, was RMB 34,819,000, a decrease of 6.4% compared to RMB 37,008,000 for the same period in 2020[19] - The company reported a basic and diluted earnings per share of RMB 0.14 for the six months ended June 30, 2021, compared to RMB 0.73 for the same period in 2020[4] - Basic earnings per share for the six months ended June 30, 2021, was RMB 0.14, a decrease of 81.9% compared to RMB 0.73 for the same period in 2020[31] - The company reported a pre-tax profit of RMB 25,921,000 for the six months ended June 30, 2021, compared to RMB 24,792,000 for the same period in 2020, reflecting a year-on-year increase of 4.6%[23] Assets and Liabilities - Total assets as of June 30, 2021, were RMB 75,515 thousand, a decrease from RMB 81,316 thousand as of December 31, 2020[6] - Current liabilities decreased to RMB 26,839 thousand as of June 30, 2021, from RMB 33,708 thousand as of December 31, 2020[6] - Non-current assets as of June 30, 2021, totaled RMB 16,113 thousand, slightly down from RMB 16,326 thousand as of December 31, 2020[6] - The company’s net asset value increased to RMB 59,736 thousand as of June 30, 2021, from RMB 59,090 thousand as of December 31, 2020[6] - Total assets as of June 30, 2021, were approximately RMB 91.6 million, down from RMB 97.6 million as of December 31, 2020[68] - Total liabilities as of June 30, 2021, were approximately RMB 31.9 million, a decrease from RMB 38.6 million as of December 31, 2020[68] Cash Flow - Cash and cash equivalents at the end of the period were RMB 8,744 thousand, down from RMB 16,545 thousand at the beginning of the period[12] - The company incurred a net cash outflow from operating activities of RMB 6,972 thousand for the six months ended June 30, 2021, compared to RMB 11,026 thousand for the same period in 2020[12] - Net cash used in operating activities for the six months ended June 30, 2021, was approximately RMB 7.0 million, down from RMB 11.0 million for the same period in 2020[70] - Cash used in investing activities increased to approximately RMB 703,000 for the six months ended June 30, 2021, compared to RMB 131,000 for the same period in 2020, due to increased acquisitions of property, plant, and equipment[70] Sales and Market Performance - Sales of fiberglass products for the six months ended June 30, 2021, included RMB 19,730,000 from fiberglass grating products, RMB 160,000 from phenolic grating products, and RMB 14,929,000 from epoxy wedge products[19] - Domestic market sales increased by approximately 4.1% to about RMB 226 million, accounting for approximately 65.0% of total sales for the six months ended June 30, 2021, up from 58.8% in the same period of 2020[50] - Sales of fiberglass grating products became the largest revenue source, contributing approximately 56.7% to total revenue, with sales increasing by about RMB 17 million or 9.4% to RMB 197 million[53] - Sales of phenolic grating products slightly decreased by about 1.8% to approximately RMB 160,000, with a gross profit margin decline of 3.4 percentage points to 36.4%[54] - Sales of epoxy wedge products decreased by approximately RMB 39 million or 20.6% to RMB 149 million, with a gross profit margin dropping by 19 percentage points to 20.4%[54] - Sales to the Chinese market increased to approximately RMB 226 million, while sales to the US and UK markets decreased by approximately 12.0% and 29.2%, respectively[60][61] Costs and Expenses - Other income for the six months ended June 30, 2021, totaled RMB 75,000, a decrease of 70.7% compared to RMB 256,000 for the same period in 2020[21] - Research and development costs for the six months ended June 30, 2021, amounted to RMB 1,472,000, a decrease of 47.5% compared to RMB 2,804,000 for the same period in 2020[24] - The company’s total employee costs for the six months ended June 30, 2021, were RMB 6,111,000, an increase of 2.7% compared to RMB 5,952,000 for the same period in 2020[23] - The company’s sales and distribution costs increased by approximately RMB 202,000 or 10.4% to about RMB 2.1 million, mainly due to rising employee costs and marketing expenses[64] - Administrative expenses decreased by approximately RMB 2.4 million or 34.8% to about RMB 4.5 million for the six months ended June 30, 2021, primarily due to reductions in R&D and printing expenses[65] Shareholder Information - The company has a total of 400,000 thousand shares issued and fully paid as of June 30, 2021, unchanged from the previous year[41] - Major shareholders include LFS and LFB, each holding 123,600,000 shares (30.9%), and Yunhong holding 40,000,000 shares (10.0%) as of June 30, 2021[93] - As of June 30, 2021, Mr. Li holds 163,600,000 shares, representing 40.9% of the company's equity, through controlled corporations LFB and Yunhong[87] Corporate Governance - The company confirmed that there are no controlling shareholders or related parties involved in any competing business as of June 30, 2021[99] - The board proposed to change the company's English name from "MEIGU Technology Holding Group Limited" to "Yunhong Guixin Group Holdings Limited" and the Chinese name accordingly[100] - The name change proposal requires approval from shareholders at a special meeting and registration with the Cayman Islands Registrar[101] - The company has adopted the GEM Listing Rules regarding securities trading by directors, confirming compliance during the six months ended June 30, 2021[103] - The company believes it has complied with all applicable corporate governance codes as per the GEM Listing Rules during the reporting period[104] - An audit committee was established on December 16, 2016, to oversee financial reporting, internal controls, and risk management[105]

Financial Performance - Revenue for the three months ended March 31, 2021, was RMB 13,623,000, an increase of 4.5% compared to RMB 13,031,000 for the same period in 2020[4] - Gross profit for the same period was RMB 3,155,000, down 35.8% from RMB 4,920,000 in 2020[4] - The company reported a net loss of RMB 468,000 for the three months ended March 31, 2021, compared to a profit of RMB 234,000 in the same period of 2020[4] - Basic and diluted loss per share was RMB (0.12) for the first quarter of 2021, compared to earnings of RMB 0.06 per share in 2020[4] - The company reported a loss attributable to owners of the company of RMB (468,000) for the three months ended March 31, 2021, compared to a profit of RMB 234,000 in the same period of 2020[26] - Basic loss per share for the three months ended March 31, 2021, was RMB (0.12), compared to RMB 0.06 for the same period in 2020[26] - The company's net loss for the three months ended March 31, 2021, was approximately RMB 468,000, compared to a net profit of about RMB 234,000 in the same period of 2020, mainly due to a decline in gross margin[51] Sales Performance - Sales of fiberglass grating products were RMB 6,710,000, slightly down from RMB 6,736,000 in the previous year[15] - Sales of epoxy wedge products increased to RMB 6,913,000, up from RMB 6,295,000 in the same period last year[15] - For the three months ended March 31, 2021, the revenue from fiberglass grating products was approximately RMB 6.71 million, with a gross margin of 21.8%, down from 28.3% in the same period of 2020[40] - The revenue from epoxy wedge products increased by approximately RMB 0.6 million or 9.8% to about RMB 6.91 million for the three months ended March 31, 2021, accounting for approximately 50.8% of total revenue[41] - Sales to the Chinese market increased by approximately 16.3% to about RMB 8.94 million, driven by a significant increase in demand due to economic recovery[46] - Sales to the U.S. market decreased by approximately 7.8% to about RMB 1.88 million, primarily due to rising tariffs and the adverse impact of the COVID-19 pandemic[47] - The company experienced a significant increase in sales from other regions, which rose by approximately 24.5% to about RMB 1.16 million, attributed to acquiring new customers in Denmark, Taiwan, and South Korea[47] Cost Management - Administrative expenses were reduced to RMB 2,375,000 from RMB 3,480,000 in the previous year, indicating cost control efforts[4] - Administrative expenses decreased by approximately RMB 1.1 million or 31.8% to about RMB 2.4 million, primarily due to reduced R&D expenditures[49] - The company incurred financial costs of RMB 318,000, compared to RMB 817,000 in the same period last year[4] - The company incurred financial costs of RMB 63,000 for bank loan interest for both the three months ended March 31, 2021, and 2020[5] Research and Development - Research and development costs for the three months ended March 31, 2021, amounted to RMB 900,000, a decrease from RMB 1,317,000 in the same period of 2020[5] - The company continues to focus on the research, development, production, and sales of fiberglass products in China[14] - The company plans to enhance product recognition through improved product technology and will hire additional talent to achieve development and expansion goals[36] - The company expects steady growth in the overall fiberglass market in China, driven by the material's superior performance and potential applications in various industries[33] Shareholder Information - LF and its concert parties own 163,600,000 shares, representing 40.9% of the total issued share capital of the company as of the report date[54] - LF is required to make a mandatory conditional cash offer for the remaining 236,400,000 shares, which accounts for 59.1% of the total issued share capital[54] - As of March 31, 2021, Mr. Jiang holds 123,600,000 shares, representing 30.9% of the company's equity[57] - The total consideration for the acquisition of 123,600,000 shares from Longxiang by LF was HKD 24,720,000, at a price of HKD 0.20 per share[60] - Mr. Shen, Mr. Jiang, Wanxing, and Longxiang collectively hold 30.9% of the total issued shares as of March 31, 2021[58] - Mr. Shen and Mr. Jiang have been concert parties since January 1, 2014, under the concert party agreement[58] - As of March 31, 2021, the company’s major shareholders include Mr. Shen and Wanxing, each holding 123,600,000 shares, or 30.9%[65] - As of the report date, Mr. Li is considered the ultimate controlling shareholder of Yunhong, holding a total of 163,600,000 shares[68] Corporate Governance - The company has no arrangements that allow directors and key executives to benefit from purchasing shares or debt securities during the reporting period[63] - No related party transactions were disclosed for the three months ended March 31, 2021, under GEM Listing Rules[71] - The company did not purchase, sell, or redeem any of its listed securities during the three months ended March 31, 2021[72] - There were no competing interests reported by major shareholders or directors for the three months ended March 31, 2021[73] - The company has adopted the GEM Listing Rules for directors' securities transactions and compliance was confirmed for the three months ended March 31, 2021[74] - The company believes it has complied with all applicable corporate governance codes as per GEM Listing Rules for the three months ended March 31, 2021[75] - The Audit Committee, established on December 16, 2016, reviewed the unaudited results for the three months ended March 31, 2021[77] Dividend Information - The company did not recommend any interim dividend for the three months ended March 31, 2021, consistent with the same period in 2020[25] Market and Product Development - The company has not disclosed any new product developments or market expansion strategies in the provided documents[66] - The report does not mention any mergers or acquisitions beyond the transaction involving LF and Longxiang[66]

Financial Performance - For the fiscal year ending December 31, 2020, MEIGU Technology reported sales revenue of approximately RMB 976 million, an increase of about 21.6% compared to 2019, and a net profit of approximately RMB 55 million, up 59.7% year-on-year[9]. - The company recorded a consolidated revenue of approximately RMB 976 million for the year ended December 31, 2020, an increase of approximately RMB 173 million or 21.6% compared to the same period in 2019[22]. - Domestic market sales increased by approximately 55.4% from RMB 415 million in 2019 to approximately RMB 644 million for the year ended December 31, 2020, accounting for about 66.0% of total sales[22]. - The group's profit for the year increased by approximately 59.7% from RMB 3.5 million in 2019 to RMB 5.5 million in 2020, primarily due to increased sales of epoxy wedge products and effective cost control measures[35]. - The company reported that sales to its top five customers accounted for 59.4% of total revenue for the year ended December 31, 2020, up from 49.8% in 2019, with the largest customer contributing approximately 31.1% of total revenue[184]. Product Performance - The epoxy wedge products became the company's best-selling items, accounting for approximately 53.1% of total revenue, compared to 31.4% in 2019[9]. - Sales revenue from phenolic grating products significantly decreased by approximately 88.1% to about RMB 250,000 for the year ended December 31, 2020, due to a downturn in the shipbuilding industry[25]. - The revenue from fiberglass grating products decreased by approximately RMB 74 million or 14.0% to approximately RMB 456 million for the year ended December 31, 2020, primarily due to reduced sales in the US and UK markets[23]. - The gross profit margin for fiberglass grating products increased by 2.4 percentage points from 31.4% in 2019 to 33.8% in 2020, mainly due to a decrease in raw material costs[23]. - Sales of epoxy wedge products became the largest revenue source for the group, accounting for approximately 53.1% of total revenue, with revenue increasing from approximately RMB 25.2 million in 2019 to approximately RMB 51.8 million in 2020, a growth of 105.6%[26]. Market Strategy - The company plans to enhance product recognition through improved technology and maintain effective cost control to strengthen competitiveness[12]. - MEIGU Technology aims to actively participate in bidding for potential projects in both domestic and overseas markets to address economic uncertainties[12]. - The company aims to expand its market presence by promoting its products in countries along the "Belt and Road" initiative[17]. - The company has a strong customer base and believes it has a competitive advantage over local enterprises in the industry, enabling further market and product expansion[20]. Economic Context - The Chinese economy recorded a GDP growth of 2.3% in 2020, indicating resilience and potential for stable growth in the long term[13]. - MEIGU Technology remains cautiously optimistic about its long-term business prospects while closely monitoring the impact of the COVID-19 pandemic on the industry[13]. - The company will adjust its strategies as necessary based on the latest developments related to the pandemic[13]. Corporate Governance - The company has adhered to the corporate governance code as stipulated in the GEM Listing Rules Appendix 15 for the fiscal year ending December 31, 2020[72]. - The board is responsible for formulating the overall strategy of the group and supervising management performance, receiving monthly financial and operational data to assess performance[73]. - The company has established a strong commitment to corporate governance, believing it is crucial for development and enhancing shareholder value[72]. - The board consists of six directors, with three executive directors and three independent non-executive directors, ensuring a balance of skills and experience[76]. - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and professional experience in board member selection[77]. Environmental Responsibility - The company is committed to minimizing any negative environmental impacts during production and has not faced any significant violations of environmental laws during the reporting period[19]. - The environmental, social, and governance report outlines the company's commitment to sustainable development and compliance with relevant regulations[118]. - The board has confirmed its responsibility for overseeing the company's sustainable development and reviewing the accuracy of the environmental, social, and governance report[119]. - The company implemented policies to reduce CO2 emissions, including increasing natural lighting in manufacturing facilities and optimizing energy consumption[126]. - The company has complied with applicable environmental laws and regulations, including the Environmental Protection Law of the People's Republic of China[131]. Employee Management - The overall employee turnover rate for the group was approximately 16% for the year ended December 31, 2020, compared to 14% in 2019[142]. - The group employed about 133 employees as of December 31, 2020, down from 143 in 2019[142]. - The group provided at least 4 hours of safety training and 4 hours of occupational hazard and safety compliance training for each production department employee during the year[145]. - There were no reported industrial accidents or injuries for the year ended December 31, 2020[143]. - The group has a policy against child labor and forced labor, with no reported labor disputes for the year ended December 31, 2020[147]. Financial Position - Total assets as of December 31, 2020, were approximately RMB 97.6 million, up from RMB 81.6 million in 2019, while total liabilities increased to approximately RMB 38.6 million from RMB 28.4 million[36]. - The total equity attributable to the company's equity holders was approximately RMB 59,090,000, an increase of 11.5% from RMB 53,141,000 in 2019[42]. - The leverage ratio increased to approximately 16.4% as of December 31, 2020, compared to 9.4% in 2019, due to a loan obtained from a shareholder[36]. - The company has not reported any new product developments or technological advancements in the current financial year[168]. - There are no significant changes in the company's financial position or performance compared to previous years as detailed in the annual report[165].

weign MEIGU Technology Holding Group Limited 美 固 科 技 控 股 集 團 有 限 公 司 (於開曼群島註冊成立的有限公司) 股份代整 : 8349 第三季度業績報告 2020 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。 本報告（美固科技控股集團有限公司（「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，旨在提供有關本公司的資料。董事在作出一切合理查詢後確認，就其所知及 所信，本報告所載資料在各重大方面均屬準確完整，並無誤導或欺詐成分，以及並無 遺漏任何其他事項致使本報告或當中所載任何陳述產生誤導。 美固科技控股 ...