Financial Performance - Total revenue for the year ended December 31, 2020, was approximately RMB 290.6 million, a decrease of 11.8% compared to RMB 329.6 million in 2019[6]. - The company reported a loss attributable to equity shareholders of approximately RMB 9.9 million, compared to a profit of RMB 31.2 million in the previous year[11]. - Overall gross margin decreased from 19.7% in 2019 to 11.1% in 2020, reflecting a decline of 8.6 percentage points[11]. - Basic loss per share was RMB 1.24, down from earnings of RMB 4.06 per share in 2019[11]. - Revenue from fabric sales decreased by approximately RMB 46.0 million or 22.7% to about RMB 156.7 million in 2020, attributed to a decline in both sales volume and selling price[24]. - Revenue from processing and dyeing services increased by approximately RMB 7.0 million or 5.5% to about RMB 133.9 million in 2020, driven by an increase in customer orders[24]. - Gross profit decreased by approximately RMB 33.0 million or 50.7% to about RMB 32.1 million for the year ended December 31, 2020, from approximately RMB 65.1 million for the year ended December 31, 2019[27]. - Other income for the year ended December 31, 2020, was approximately RMB 4.5 million, a decrease of about RMB 19.1 million from approximately RMB 23.6 million for the year ended December 31, 2019, mainly due to reduced government subsidies[30]. - Government subsidies decreased from approximately RMB 18.4 million for the year ended December 31, 2019, to about RMB 1.8 million for the year ended December 31, 2020[30]. Financial Ratios and Metrics - The current ratio decreased by 26.2% from 1.41 in 2019 to 1.04 in 2020[6]. - The quick ratio increased by 2.9% from 0.69 in 2019 to 0.71 in 2020[6]. - The debt-to-equity ratio improved from 31.8% in 2019 to 28.2% in 2020, a decrease of 3.6 percentage points[6]. - The company's debt-to-asset ratio decreased to approximately 28.2% in 2020 from 31.8% in 2019, attributed to a reduction in bank borrowings[74]. - The average inventory turnover days decreased from 115 days for the year ended December 31, 2019, to 105 days for the year ended December 31, 2020, primarily due to a reduction in average inventory balance[51]. - The average trade receivables turnover days increased from 46 days for the year ended December 31, 2019, to 70 days for the year ended December 31, 2020, attributed to a decrease in total revenue[58]. - The average trade payables turnover days increased to 64 days in 2020 from 29 days in 2019, primarily due to an increase in average trade payables[66]. Operational Developments - The company successfully established a melt-blown fabric production line, expanding its business scope amid the global pandemic[11]. - The company is focusing on expanding the production and application of meltblown fabric, which has seen stable production and increasing market demand[20]. - The company aims to strengthen its market share in key products while actively expanding the application range of meltblown fabric[20]. - The company plans to enhance its sales network in overseas markets and ensure the supply of key raw materials[20]. - The company has established a provincial-level enterprise research institute and received multiple awards for its green functional fabric development and water-saving initiatives[21]. - The company is committed to continuous investment in new product development, particularly in green functional fabrics[21]. - The group plans to enhance research and development of green functional fabrics and expand its business team to increase market share and product gross margin[90]. - The group aims to expand production capacity and upgrade existing machinery at its Huzhou production center, including the purchase of meltblown fabric production lines[91]. Corporate Governance - The board emphasized the importance of high corporate governance standards to enhance shareholder value[12]. - The company has adopted the corporate governance code as per GEM listing rules, with a commitment to high standards of corporate governance and internal control systems[114]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced composition for effective independent judgment[117]. - The independent non-executive directors have confirmed their independence according to GEM listing rules, with no director serving for more than nine years as of the report date[124]. - The company has implemented measures to enhance its internal control systems and corporate governance practices[114]. - The board regularly reviews its functions to ensure alignment with the group's needs[120]. - The company has a compliance officer, Mr. Dai Shunhua, who oversees adherence to regulatory requirements[123]. - The board is responsible for maintaining an effective internal control system and has reviewed the risk management framework[149]. Employee and Management - The total employee cost for the year was approximately RMB 22.6 million, a decrease from RMB 25.9 million in 2019[88]. - The company has a strong management team with expertise in textile trade, production operations, and product development, ensuring effective strategic execution[108][110][111]. - The company emphasizes training and technical support for its personnel, ensuring high standards in production and product quality[110]. - The board regularly reviews employee compensation to remain competitive and attract talent[175]. Environmental and Social Responsibility - The group has implemented various green office measures to promote environmental sustainability, including double-sided printing and recycling initiatives[173]. - The group is committed to enhancing environmental sustainability by adhering to the 3R principles: Reduce, Recycle, and Reuse[173]. - Charitable donations made by the group during the review year amounted to approximately RMB 0.2 million, an increase from RMB 0.1 million in 2019[194]. Future Outlook - The group anticipates intensified market competition in 2021, driven by ongoing global economic complexities and the pandemic's long-term effects[85]. - The company is expanding its production capabilities in response to the growing application of meltblown fabric in various sectors[94]. Stock Option Plan - The stock option plan allows the company to grant options to qualified participants as an incentive or reward for their contributions[200]. - The total number of shares that can be issued upon exercise of all options granted under the stock option plan is capped at 10% of the total shares issued as of the listing date[200]. - The stock options can be exercised within a period determined by the board and notified to the relevant grantees[200]. - The plan is designed to attract and retain high-quality employees, including full-time and part-time staff, directors, and consultants[200]. - The board has the discretion to determine the terms of the stock options granted under the plan[200].

Financial Performance - Revenue decreased by 17.5% to approximately RMB 191.5 million compared to RMB 232.0 million in the same period last year[10] - Gross profit decreased by 65.8% to approximately RMB 17.2 million, with a gross margin of about 9.0% compared to 21.7% in the previous year[10] - The company reported a loss attributable to equity holders of approximately RMB 16.1 million, compared to a profit of RMB 26.0 million in the same period last year[10] - Basic loss per share was approximately RMB 2.01, compared to earnings of RMB 3.43 per share in the previous year[10] - Other income for the nine months was RMB 3.87 million, significantly down from RMB 25.93 million in the previous year[11] - The company incurred a loss before tax of approximately RMB 16.82 million, compared to a profit of RMB 31.70 million in the previous year[11] - Total equity attributable to equity holders decreased to RMB 155.06 million as of September 30, 2020, from RMB 180.34 million at the end of the previous year[12] - The total loss attributable to equity holders for the nine months ended September 30, 2020, was approximately RMB 16.1 million, a significant decline from a profit of approximately RMB 26.0 million for the same period in 2019[63] Revenue Breakdown - Revenue for the nine months ended September 30, 2020, was RMB 191.495 million, a decrease of 17.5% from RMB 231.962 million in the same period of 2019[24] - Fabric sales revenue was RMB 100.222 million, down 29.6% from RMB 142.297 million in 2019[24] - Dyeing service revenue increased to RMB 91.273 million, up 1.4% from RMB 89.665 million in 2019[24] - Revenue from fabric sales decreased by approximately 29.6% from RMB 142.3 million in the nine months ended September 30, 2019, to approximately RMB 100.2 million in the same period of 2020, reflecting a drop in total sales volume from approximately 31.1 million meters to approximately 21.3 million meters[49] - Revenue from dyeing services increased slightly by approximately RMB 1.6 million or 1.8% to approximately RMB 91.3 million for the nine months ended September 30, 2020, compared to RMB 89.7 million in the same period of 2019[50] Expenses and Costs - Administrative expenses for the nine months were RMB 7.86 million, slightly down from RMB 8.60 million in the previous year[11] - Research expenses for the nine months were RMB 7.48 million, compared to RMB 8.74 million in the previous year[11] - Total finance costs for the nine months ended September 30, 2020, were RMB 3.996 million, slightly down from RMB 4.014 million in 2019[31] - Employee costs, including directors' remuneration, were RMB 14.023 million, a slight decrease from RMB 14.422 million in 2019[32] - Selling and distribution expenses decreased by approximately RMB 0.3 million or 15.8% to approximately RMB 1.6 million for the nine months ended September 30, 2020, primarily due to reduced transportation costs[57] - Administrative expenses decreased by approximately RMB 0.7 million or 8.1% to approximately RMB 7.9 million for the nine months ended September 30, 2020, mainly due to reductions in travel and professional service costs[58] - Research expenditure for the nine months ended September 30, 2020, was approximately RMB 7.5 million, down from RMB 8.7 million in the same period of 2019, primarily due to a decrease in the use of different raw materials during testing[59] Taxation - For the nine months ended September 30, 2020, the company reported a tax credit of RMB (732) thousand compared to a tax expense of RMB 5,705 thousand for the same period in 2019[10][36] - The company reported a tax expense of RMB 1,468 thousand calculated at the preferential tax rate for the nine months ended September 30, 2020, compared to a tax credit of RMB (3,514) thousand in 2019[10][36] Impact of COVID-19 - The company faced challenges due to the COVID-19 pandemic, which led to a temporary shutdown of its factory from January 24 to February 21, 2020, impacting revenue[10][45] - The company’s factories in China resumed operations on February 21, 2020, after being closed since January 24, 2020, due to COVID-19, and reported stable production despite ongoing overseas pandemic impacts[68] Strategic Focus - The company is focusing on strengthening its core textile dyeing and finishing business while seeking new customers to increase market share[10][45] - The company aims to increase market share of leading products and enhance profitability through innovation and market-oriented strategies amid a challenging competitive landscape[66] - The company plans to intensify research and development of green functional fabrics and expand its business team to improve market share and product gross margins[67] - The company is actively developing new materials applicable in various fields, including aerospace and infrastructure, to stimulate further growth in the textile industry[10][42] Corporate Governance and Structure - The board of directors resolved not to declare any dividends for the nine months ended September 30, 2020, compared to a dividend of HKD 0.02 per share in the previous year[10][40] - The board believes that the current structure of having the chairman also serve as CEO provides strong and consistent leadership for long-term business strategy[102] - The audit committee has reviewed the unaudited financial report for the nine months ending September 30, 2020, and agreed that the accounting treatment is in compliance with current accounting standards[106] - The company has adhered to all applicable provisions of the corporate governance code during the reporting period, with minor deviations noted[100] - The company has appointed KPMG as its external auditor following the resignation of Deloitte, with no disagreements reported[104] Shareholder Information - Spring Sea holds approximately 59.11% of the company's issued share capital, with key shareholders being Mr. Dai Shunhua and Ms. Song Xiaoying[78] - As of September 30, 2020, Spring Sea holds 472,848,000 shares, representing approximately 59.11% of the company's issued share capital[82] - Mr. Dai and Ms. Song are beneficial owners of Spring Sea, holding approximately 53.98% and 46.02% of its shares, respectively[83] - Major shareholders include Summer Land Star with 121,602,000 shares (15.20%) and Ms. Wang with 103,787,000 shares (12.97%)[82] Use of Proceeds - The net proceeds from the share placement in February 2019 amounted to approximately RMB 37.9 million (equivalent to about HKD 44.7 million)[96] - The company plans to use approximately RMB 8.5 million of the net proceeds for establishing a new weaving factory in Zhejiang Province, China[96] - The company has decided to allocate unutilized net proceeds to purchase melt-blown fabric production lines due to increased demand for melt-blown fabric and eligibility for government subsidies[97] - The revised total amount of net proceeds planned for various uses is RMB 37.9 million, with RMB 35.8 million already utilized as of September 30, 2020[99] - The company has fully utilized RMB 5.2 million for the renovation of existing weaving factories and RMB 10.4 million for the purchase of weaving machinery and equipment[99] - The company plans to fully utilize the remaining RMB 2.1 million for the purchase of dyeing machinery and equipment by December 2020[99] Legal and Compliance - There were no significant legal claims or potential lawsuits against the company as of September 30, 2020[85] - The company has complied with applicable laws and regulations during the reporting period[84] - No share options were granted under the share option scheme during the reporting period[90] - At least 25% of the issued shares were held by public shareholders in accordance with GEM listing rules[86] - The company did not engage in any related party transactions during the reporting period[92] Post-Reporting Events - There are no significant post-reporting period events that require disclosure as of the report date[108]

Financial Performance - Revenue decreased by 22.3% to approximately RMB 119.5 million compared to RMB 153.7 million in the same period last year[8] - Gross profit fell by 80.0% to approximately RMB 6.6 million, with a gross margin of about 5.5% compared to 21.5% in the previous year[8] - The company reported a loss attributable to equity holders of approximately RMB 16.0 million, compared to a profit of RMB 18.4 million in the same period last year[8] - Basic loss per share was approximately RMB 2.00, down from a basic earnings per share of RMB 2.50 in the previous year[8] - The company incurred a loss before tax of approximately RMB 16.73 million, compared to a profit of RMB 22.68 million in the previous year[9] - The company incurred a net loss of RMB 16,010,000 for the six months ended June 30, 2020, compared to a profit of RMB 18,445,000 in the same period last year, marking a significant decline in profitability[13] - The total loss attributable to equity holders for the six months ended June 30, 2020, was approximately RMB 16.0 million, compared to a profit of about RMB 18.4 million for the same period in 2019[97] Income and Expenses - Other income decreased significantly to RMB 3.1 million from RMB 28.2 million in the previous year[9] - Administrative expenses increased to RMB 6.66 million from RMB 5.49 million in the previous year[9] - Research expenses decreased slightly to RMB 4.78 million from RMB 5.26 million in the previous year[9] - The company incurred a total financial cost of RMB 2,686,000, down from RMB 3,206,000 in the previous year[36] - The company received government grants totaling RMB 2,018,000 in 2020, a decrease of 87.3% from RMB 15,741,000 in 2019[33] - The company’s interest income decreased to RMB 6,000 from RMB 179,000 in the previous year[33] - Financial costs for the six months ended June 30, 2020, were approximately RMB 2.7 million, a decrease of about RMB 0.5 million or 15.6% compared to RMB 3.2 million in 2019, primarily due to reduced bank interest rates[93] Assets and Liabilities - As of June 30, 2020, total assets amounted to RMB 195,637,000, an increase from RMB 184,191,000 in the previous year, representing a growth of approximately 6.4%[10] - The company reported a total equity of RMB 155,137,000 as of June 30, 2020, down from RMB 171,147,000 at the end of 2019, reflecting a decrease of approximately 9.4%[11] - The total liabilities increased to RMB 186,423,000 as of June 30, 2020, compared to RMB 163,156,000 at the end of 2019, indicating a rise of about 14.2%[11] - The company's trade receivables as of June 30, 2020, amounted to RMB 56,271,000, down from RMB 60,499,000 as of December 31, 2019, with a total of RMB 72,161,000 in trade and other receivables[52] - The company reported trade payables of RMB 27,107,000 as of June 30, 2020, compared to RMB 30,633,000 as of December 31, 2019, with total trade, notes, and other payables at RMB 60,909,000[54] - The debt-to-asset ratio as of June 30, 2020, was approximately 33.4%, up from 31.8% as of December 31, 2019, primarily due to increased bank borrowings[108] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2020, was RMB 34,718,000, significantly up from RMB 4,798,000 in the same period last year, indicating a growth of over 620%[15] - Cash and cash equivalents at the end of the period increased to RMB 9,298,000 from RMB 5,189,000, representing an increase of approximately 79.5%[15] - Net cash used in investing activities for the six months ended June 30, 2020, was approximately RMB 6.3 million, a decrease of about RMB 19.7 million from RMB 26.0 million for the same period in 2019[103] - Net cash used in financing activities for the six months ended June 30, 2020, was approximately RMB 24.0 million, a decrease of about RMB 63.8 million compared to RMB 39.8 million for the same period in 2019[104] Market and Operations - The company did not report any new product launches or market expansion strategies during this period[9] - The company is focusing on strengthening its core textile dyeing and finishing business while seeking new customers to increase market share[78] - The company has successfully produced and sold melt-blown fabric, with positive customer feedback and agreements with companies for further applications[79] - The production line for melt-blown fabric has been expanded due to high demand resulting from the pandemic[79] - The company plans to increase its market share and improve product gross margins by further developing green functional fabrics and expanding its business team[116] - The company aims to enhance its market responsiveness by focusing on high-quality development, profit-centered strategies, and technological innovation[116] - The company believes that the negative impact of the pandemic is temporary and has sufficient operating funds to meet its financial obligations over the next twelve months[114] Shareholder Information - Spring Sea Star Investment Limited holds 472,848,000 shares, representing approximately 59.11% of the company's issued share capital[128] - Summer Land Star Investment Limited owns 121,602,000 shares, accounting for 15.20% of the total issued share capital[128] - Wang Yun has a controlled interest in 103,787,000 shares, which is 12.97% of the company's issued share capital[128] - The net proceeds from the share placement amount to approximately RMB 37.9 million (equivalent to about HKD 44.7 million) after deducting underwriting commissions and related expenses[140] Corporate Governance - The company has adhered to all applicable corporate governance code provisions, except for a deviation regarding the separation of roles between the chairman and CEO[148] - The audit committee has reviewed the unaudited financial statements for the six months ending June 30, 2020, and agrees with the accounting treatment adopted[153]

Financial Performance - Revenue decreased by 33.0% to approximately RMB 52.8 million compared to RMB 78.8 million in the same period last year[6] - Gross profit decreased by 64.6% to approximately RMB 5.6 million, with a gross margin of about 10.6% compared to 20.0% in the previous year[6] - The company reported a loss attributable to equity holders of approximately RMB 2.3 million, compared to a profit of RMB 14.0 million in the same period last year[6] - Basic loss per share was approximately RMB 0.29, compared to basic earnings of RMB 2.08 per share in the previous year[6] - Other income decreased significantly to RMB 1.9 million from RMB 14.2 million in the previous year[7] - The company incurred a loss before tax of RMB 2.3 million, compared to a profit before tax of RMB 16.3 million in the previous year[7] - Total comprehensive loss attributable to equity holders was RMB 2.3 million, compared to a total comprehensive profit of RMB 14.0 million in the previous year[7] - Revenue for the three months ended March 31, 2020, was RMB 52,796,000, a decrease of 32.9% from RMB 78,789,000 in the same period of 2019[16] - Fabric sales revenue was RMB 31,430,000, down 42.5% from RMB 54,524,000 year-on-year[16] - Dyeing service revenue was RMB 21,366,000, a decrease of 11.8% compared to RMB 24,265,000 in the previous year[16] Expenses and Costs - Financial costs for the three months ended March 31, 2020, were RMB 1,188,000, a decrease of 25.4% from RMB 1,591,000 in 2019[24] - Income tax expense was RMB 73,000, a significant decrease from RMB 2,272,000 in the same period last year[24] - Administrative expenses increased from approximately RMB 3.0 million to RMB 3.1 million, a rise of about 3.3%[38] - Research expenses were RMB 1.7 million, down from RMB 2.4 million in the same period last year[7] - Selling and distribution expenses increased by approximately RMB 0.1 million or about 8.0% to approximately RMB 0.5 million due to higher transportation costs related to the pandemic[37] - Other losses increased by approximately RMB 2.9 million to RMB 3.2 million, mainly due to increased foreign exchange losses of about RMB 2.6 million[36] Dividends and Shareholder Information - No dividend was declared for the three months ended March 31, 2020, consistent with the previous year[6] - The company did not declare an interim dividend for the three months ended March 31, 2020, compared to zero in 2019[27] - Spring Sea holds 472,848,000 shares, representing approximately 59.11% of the company's issued share capital[55] - Mr. Dai Shunhua and Ms. Song Xiaoying are beneficial owners of Spring Sea, holding approximately 53.98% and 46.02% of its equity, respectively[55] - Summer Land Star Investment Limited, controlled by Wang Yun, holds 121,602,000 shares, accounting for 15.20% of the company's total issued shares[54] Operational Strategy and Development - The company continued to focus on strengthening its core textile production and dyeing business, while also seeking new customers to increase market share[28] - The company is investing in new product and technology development, collaborating with Suzhou University on new product development[29] - The company has established a postdoctoral workstation and an ecological functional fabric research institute in Zhejiang Province, and was recognized as a provincial-level hidden champion cultivation enterprise[29] - The company aims to expand its market share and revenue sources by focusing on the commercial viability of competitive products[46] - The company plans to increase R&D investment in green functional fabrics and improve product gross margins[46] - The company intends to phase out high-energy-consuming production equipment and introduce more energy-efficient machinery[46] - The company has experienced a shift in its operational strategy due to increased demand for meltblown fabric, which is used in medical protective products and other applications[75] Compliance and Governance - The company has confirmed compliance with the corporate governance code and has established an audit committee to oversee financial reporting and internal controls[71] - The company has complied with applicable laws and regulations without any significant violations impacting its business operations[56] - The company has not granted any options under its share option scheme since its adoption[62] - There were no related party transactions or ongoing related party transactions during the reporting period[63] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[59] Financial Position and Proceeds Utilization - The company’s total equity as of March 31, 2020, was RMB 168.8 million, a slight decrease from RMB 171.1 million at the beginning of the year[8] - The net proceeds from the fundraising amounted to RMB 37.9 million, with RMB 27.3 million already utilized and RMB 10.6 million remaining unspent[74] - The company plans to allocate the unspent proceeds of RMB 8.5 million towards the purchase of meltblown fabric production lines, which are essential for manufacturing various products including masks[75] - The company has completed the renovation of existing weaving facilities, utilizing the full budget of RMB 5.2 million[77] - The company has spent RMB 10.4 million on the purchase of weaving machinery and equipment, fully utilizing the allocated budget[77] - The company has enhanced its environmental protection infrastructure, fully utilizing the budget of RMB 5.4 million[77] - As of March 31, 2020, the company has no significant legal liabilities or ongoing litigation threats[57] - At least 25% of the issued shares are held by public shareholders, in compliance with GEM listing rules[58] Reporting and Disclosure - The company will disclose its quarterly report for the three months ending March 31, 2020, to shareholders and on its website[78]

Financial Performance - Total revenue for the year ended December 31, 2019, was approximately RMB 329.6 million, a slight decrease of 0.8% from RMB 332.3 million in 2018[6]. - Profit attributable to equity shareholders was approximately RMB 31.2 million, down by about RMB 8.1 million or 20.5% compared to RMB 39.3 million in the previous year[11]. - Basic earnings per share decreased by 38.5% to RMB 4.06 from RMB 6.60 in 2018[6]. - The overall gross profit margin slightly declined from 20.0% in 2018 to 19.7% in 2019[11]. - Gross profit for the year ended December 31, 2019, was approximately RMB 65.1 million, compared to RMB 66.5 million in 2018, with a gross margin of 19.7%[33]. - The group's annual profit and other comprehensive income decreased by approximately 32.2% from about RMB 46.1 million for the year ended December 31, 2018, to about RMB 31.2 million for the year ended December 31, 2019[58]. Revenue Sources - Revenue from fabric sales decreased by approximately 7.7% to about RMB 202.7 million, reflecting a reduction in total fabric sales volume from approximately 48.8 million meters in 2018 to about 38.8 million meters in 2019[24]. - Revenue from dyeing services in China increased by approximately RMB 14.0 million or 12.4% to about RMB 126.9 million for the year ended December 31, 2019, compared to RMB 112.9 million for the year ended December 31, 2018[26]. Expenses and Costs - The total sales and service costs for the year ended December 31, 2019, were approximately RMB 264.5 million, slightly down from RMB 265.8 million in 2018[29]. - Raw materials accounted for approximately 66.9% of total sales and service costs in 2019, down from 72.4% in 2018, with raw material costs recognized at about RMB 177.0 million[30]. - Direct labor costs increased by approximately 85.0% to about RMB 16.7 million in 2019, up from RMB 9.0 million in 2018, due to hiring more production staff[31]. - The gross margin for dyeing services decreased to approximately 29.9% in 2019 from 33.7% in 2018, primarily due to increased chemical material costs[34]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.02 per share, totaling HKD 16 million[11]. - The board proposed an interim dividend of HKD 0.02 per share, totaling approximately HKD 16 million for the nine months ending September 30, 2019[107]. - No final dividend was proposed for the year ending December 31, 2019, compared to zero in the previous year[108]. Financial Ratios and Stability - The current ratio improved by 48.4% to 1.41 from 0.95 in the previous year[6]. - The quick ratio increased by 68.3% to 0.69 from 0.41 in 2018[6]. - The debt-to-equity ratio decreased to 31.8% from 44.9% in the previous year, indicating improved financial stability[6]. - The debt-to-asset ratio as of December 31, 2019, was approximately 31.8%, down from 44.9% in 2018, primarily due to a reduction in bank borrowings[95]. Government Support and Subsidies - The company received government subsidies of approximately RMB 14.5 million related to its listing, partially offsetting the decrease in other income[11]. - Other income for the year ended December 31, 2019, was approximately RMB 23.6 million, an increase of about RMB 12.2 million from RMB 11.4 million in 2018, mainly due to increased government subsidies[36]. Corporate Governance - The company is committed to enhancing corporate governance standards and increasing transparency for shareholders[12]. - The company has adopted corporate governance principles and measures to enhance internal control systems, ensuring compliance with local and international standards[133]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced composition for effective independent judgment[136]. - The company has established three committees: audit, remuneration, and nomination, to oversee specific areas of governance[147]. Research and Development - The company is focusing on the development of green functional fabric products, which have gained positive market response and are being applied among domestic and international customers[21]. - The company aims to increase research and development of green functional fabrics to expand market share and improve product gross margins[105]. - The company is focusing on R&D for high-temperature environmentally friendly dyeing processes and plans to collaborate with Zhejiang Sci-Tech University on medical-functional fabrics[110]. Inventory and Receivables - Inventory increased from approximately RMB 72.5 million as of December 31, 2018, to approximately RMB 93.8 million as of December 31, 2019, mainly due to increased procurement of raw materials and finished goods[62]. - Trade receivables rose significantly from approximately RMB 22.9 million as of December 31, 2018, to approximately RMB 60.5 million as of December 31, 2019, due to increased sales in the first three months of the reporting period[69]. Management and Leadership - Wang Yongkang has over 20 years of experience in the textile dyeing industry and has been overseeing the overall corporate development of the group since his appointment as an executive director in July 2018[119]. - Liu Bo, appointed as an independent non-executive director in January 2019, is the chairman of the nomination committee and a member of the audit and remuneration committees[120]. - The company has engaged KPMG as its external auditor for the fiscal year ending December 31, 2019, with total audit fees amounting to approximately RMB 1.1 million[171]. Environmental Initiatives - The group is committed to environmental sustainability and promotes green measures in daily operations[191]. - The company has installed a wastewater treatment system in existing weaving factories as part of its environmental protection initiatives[110].

(於開曼群島註冊成立的有限公司) 股份代號 : 8607 第三季季度報告 THIRD QUARTERLY REPORT 香港聯合交易所有限公司（「聯交所」）GEM之特色 GEM的定位，乃為中小型公司提供一個上市的市場，此等公司相比起其他在聯交所上市的公司 帶有較高投資風險。有意投資的人士應了解投資於該等公司的潛在風險，並應經過審慎周詳的 考慮後方作出投資決定。 由於GEM上市的公司一般為中小型公司，在GEM買賣的證券可能會較於聯交所主板買賣之證券 承受較大的市場波動風險，同時無法保證在GEM買賣的證券會有高流通量的市場。 香港交易及結算所有限公司及聯交所對本報告的內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示概不就因本報告全部或任何部分內容而產生或因倚賴該等內容而引致的 任何損失承擔任何責任。 本報告的資料乃遵照聯交所的GEM證券上市規則（「GEM上市規則」）而刊載，旨在提供有關納尼 亞（香港）集團有限公司（「本公司」，及其附屬公司，統稱「本集團」）的資料；本公司的董事（「董 事」）願就本報告的資料共同及個別地承擔全部責任。各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 ...

Financial Performance - Revenue increased by 1.7% to approximately RMB 153,684,000 compared to RMB 151,102,000 in the same period last year[7] - Gross profit rose by 11.8% to approximately RMB 33,024,000, with a gross margin of about 21.5% compared to 19.6% last year[7] - Profit attributable to owners decreased by 24.8% to approximately RMB 18,445,000, down from RMB 24,527,000 in the previous year[7] - Basic earnings per share decreased by 39.8% to approximately RMB 2.50, compared to RMB 4.15 in the same period last year[7] - The company reported a total comprehensive income of RMB 18,445,000 for the period, down from RMB 31,317,000 last year[8] - Pre-tax profit was impacted by an increase in inventory costs, which rose to RMB 97,301,000 from RMB 78,920,000 year-on-year[56] - The pre-tax profit for the six months ended June 30, 2019, was RMB 22,683,000, down 29.8% from RMB 32,092,000 in the same period of 2018[61] - Basic earnings per share for the six months ended June 30, 2019, were RMB 2.50, a decrease of 39.6% from RMB 4.15 in the same period of 2018[63] Income and Expenses - Other income increased to RMB 28,185,000 from RMB 14,726,000 year-on-year[8] - Listing expenses amounted to approximately RMB 5,864,000 during the reporting period[8] - Administrative expenses decreased to RMB 5,491,000 from RMB 7,121,000 year-on-year[8] - Research expenses increased to RMB 5,261,000 compared to RMB 4,430,000 in the previous year[8] - Total finance costs decreased to RMB 3,206,000 for the six months ended June 30, 2019, from RMB 4,135,000 in 2018[55] - Sales and distribution expenses decreased from approximately RMB 1.4 million to RMB 1.1 million, a reduction of about RMB 0.3 million or 17.2% due to lower transportation costs[105] - Administrative expenses decreased from approximately RMB 7.1 million to RMB 5.5 million, a reduction of about RMB 1.6 million or 22.9%, primarily due to decreased professional service fees[106] - Research expenses increased from approximately RMB 4.4 million to RMB 5.3 million, an increase of about RMB 0.9 million, mainly due to increased use of different raw materials and additional labor costs for R&D projects[108] Assets and Liabilities - As of June 30, 2019, total assets amounted to RMB 195,584,000, compared to RMB 119,360,000 as of December 31, 2018, reflecting a significant increase of approximately 64%[9] - Current assets increased to RMB 187,777,000 from RMB 127,862,000, representing a growth of about 47%[9] - Total equity rose to RMB 172,793,000 as of June 30, 2019, up from RMB 97,568,000 at the end of 2018, indicating an increase of approximately 77%[10] - The company’s cash and cash equivalents at the end of the period were RMB 23,703,000, compared to RMB 13,083,000 at the end of the previous year, marking an increase of about 81%[14] - The company incurred a net cash outflow from investing activities of RMB 26,002,000 for the six months ended June 30, 2019, compared to a net inflow of RMB 17,018,000 in the same period of 2018[14] - Financing activities generated a net cash inflow of RMB 39,849,000 in the first half of 2019, contrasting with a net outflow of RMB 58,159,000 in the same period of the previous year[14] - Inventory levels increased to RMB 87,214,000 as of June 30, 2019, from RMB 72,525,000 at the end of 2018, reflecting a rise of approximately 20%[9] - Trade and other receivables rose significantly to RMB 55,859,000 from RMB 29,456,000, indicating an increase of about 90%[9] Cash Flow - The company reported a net cash inflow from operating activities of RMB 4,798,000 for the six months ended June 30, 2019, a decrease from RMB 50,004,000 in the same period of 2018[14] - Net cash inflow from operating activities decreased to approximately RMB 4.8 million from RMB 50.0 million, a decrease of about RMB 45.2 million[117] - Net cash outflow from investing activities increased to approximately RMB 26.0 million from an inflow of RMB 17.0 million, an increase of about RMB 43.0 million[118] - Net cash inflow from financing activities increased to approximately RMB 39.8 million from an outflow of RMB 58.2 million, an increase of about RMB 98.0 million, mainly due to proceeds from the listing[119] Corporate Governance and Compliance - The company has adhered to all applicable corporate governance codes, except for a deviation regarding the separation of the roles of Chairman and CEO[156][157] - The audit committee was established in accordance with GEM Listing Rules and is responsible for overseeing the credibility of financial statements and the audit process[159] - The audit committee consists of independent non-executive directors, with Mr. Yu Zhongliang appointed as the chairman due to his professional qualifications and accounting experience[159] - The company has confirmed compliance with the securities trading standards for directors during the reporting period[158] Shareholder Information - Directors and the CEO hold approximately 59.11% of the company's shares through Spring Sea, with 472,848,000 shares owned[135] - Spring Sea holds 472,848,000 shares, representing approximately 59.11% of the company's issued share capital[139] - Summer Land Star owns 127,152,000 shares, accounting for 15.89% of the company's issued share capital[139] - The issued and paid-up ordinary shares amounted to 800,000,000 shares, with a total capital of RMB 5,346,000 as of June 30, 2019[76] - The company did not recommend any interim dividend for the six months ended June 30, 2019, consistent with the previous year[77] Strategic Initiatives - The group aims to expand textile and dyeing production capacity to meet market demand and increase profit margins[131] - The group plans to enhance research and development of green functional fabrics to improve market share and gross profit margins[131] - The company emphasizes a profit-centered approach, driven by innovation and market orientation, to enhance market responsiveness[130] - The overall business strategy focuses on profit, innovation, market orientation, and sales leadership to elevate business performance[130] Legal and Regulatory Matters - The company has not engaged in any significant legal disputes or potential lawsuits as of June 30, 2019[142] - At least 25% of the issued shares are held by public shareholders in compliance with GEM listing rules[143] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[144] - No share options have been granted under the share option scheme since its adoption[147]

Financial Performance - Revenue increased by 34.5% to approximately RMB 78,789,000 compared to RMB 58,574,000 in the same period last year[8] - Gross profit rose by 42.5% to approximately RMB 15,771,000, with a gross margin of about 20.0% compared to 18.9% last year[8] - Operating profit increased by 198.8% to approximately RMB 5,967,000, up from RMB 1,997,000 in the previous year[8] - Profit attributable to owners of the company decreased by 34.8% to approximately RMB 14,021,000, down from RMB 21,504,000 last year[8] - Basic earnings per share decreased by 20.3% to approximately RMB 2.08, compared to RMB 2.61 in the same period last year[8] - Total comprehensive income for the quarter was RMB 14,021,000, down from RMB 27,637,000 in the previous year[9] - Total revenue for the three months ended March 31, 2019, was approximately RMB 788 million, representing a 34.5% increase compared to RMB 586 million for the same period in 2018[36] - The total profit and other comprehensive income attributable to owners of the company decreased by approximately 34.8% to about RMB 14.0 million for the three months ended March 31, 2019, from approximately RMB 21.5 million for the same period in 2018[50] Revenue Breakdown - Fabric sales accounted for RMB 54,524,000, representing a significant increase of 67.2% compared to RMB 32,598,000 in the previous year[18] - Dyeing service revenue was RMB 24,265,000, a slight decrease of 6.6% from RMB 25,976,000 in the same period last year[18] - Revenue from fabric sales increased by approximately 67.2% to about RMB 545 million, with total fabric sales volume rising from approximately 7.6 million meters to about 12.3 million meters[36] Expenses and Costs - Other income increased significantly to RMB 14,174,000 from RMB 3,371,000 in the previous year[9] - Research expenses rose to RMB 2,389,000 from RMB 1,500,000 year-on-year[9] - The company reported a total finance cost of RMB 1,591,000, down from RMB 2,303,000 in the same period last year, indicating improved cost management[26] - Income tax expense for the three months ended March 31, 2019, was RMB 2,272,000, compared to RMB 302,000 in the same period last year, reflecting higher taxable income[28] - Administrative expenses decreased by approximately RMB 1.8 million or 37.5% to about RMB 3.0 million for the three months ended March 31, 2019, compared to approximately RMB 4.8 million for the same period in 2018[45] - Financial costs decreased by approximately RMB 0.7 million or 30.4% to about RMB 1.6 million for the three months ended March 31, 2019, compared to approximately RMB 2.3 million for the same period in 2018[47] Corporate Governance and Structure - The company has complied with all applicable corporate governance codes since its listing on February 26, 2019, except for a deviation from code provision A.2.1[75] - The audit committee has reviewed the unaudited financial report for the three months ended March 31, 2019, and agreed with the accounting policies adopted by the company[79] - The company completed a restructuring plan to streamline its group structure in preparation for its listing on the GEM of the Stock Exchange, with a total of 800,000,000 shares issued post-listing[53] - The board of directors includes Mr. Dai Shunhua as the chairman, along with executive directors Ms. Song Xiaoying and Mr. Wang Yongkang, and independent non-executive directors Dr. Liu Bo, Mr. Liang Jiadian, and Mr. Yu Zhongliang[85] Shareholder Information - Spring Sea holds approximately 59.11% of the company's issued share capital, with Mr. Dai Shunhua and Ms. Song Xiaoying being the beneficial owners[56] - Summer Land Star owns 127,152,000 shares, accounting for about 15.89% of the company's issued share capital[60] - The net proceeds from the share placement amount to approximately RMB 48.8 million (equivalent to about HKD 57.6 million) after deducting underwriting commissions and related expenses[74] - As of March 31, 2019, the company has utilized approximately RMB 5.1 million of the net proceeds, with RMB 1.4 million used for purchasing machinery and equipment, and RMB 3.7 million for working capital[74] Future Plans and Strategies - The company plans to further expand textile and dyeing capacity to meet market demand and increase profitability[35] - The company will increase R&D investment in green functional fabrics to enhance market share and product gross margin[35] - The company aims to eliminate high-energy-consuming production equipment and introduce more energy-efficient machinery[35] Legal and Compliance - There are no significant legal claims or potential lawsuits threatening the company as of March 31, 2019[64] - The company has not engaged in any related party transactions that require disclosure during the reporting period[71] - The company has maintained at least 25% of its issued shares held by the public since its listing[65] - No share options have been granted under the share option scheme since its adoption on January 29, 2019[69] Reporting and Disclosure - The company will send the quarterly report for the period ending March 31, 2019, to shareholders and publish it on its website and the Hong Kong Stock Exchange website[83] - The first quarter report for 2019 is referenced, indicating ongoing financial disclosures and performance tracking[86]

Financial Performance - Total revenue for the year ended December 31, 2018, reached approximately RMB 332.3 million, an increase of 39.5% compared to the previous year[7]. - Profit attributable to shareholders was approximately RMB 39.3 million, up 181.7% year-on-year[12]. - Basic earnings per share increased to RMB 6.60, representing a 240.2% rise compared to the previous year[7]. - The overall gross profit margin improved from 19.3% to 20.0%[12]. - The company reported a pre-tax profit of RMB 51.4 million, a significant increase of 150.2% from the previous year[7]. - Gross profit for the year ended December 31, 2018, was approximately RMB 66.5 million, up from RMB 46.1 million in 2017, with a gross margin of 20.0% compared to 19.3% in the previous year[33]. - The total annual profit and other comprehensive income increased by approximately 159.3%, from about RMB 17.8 million in 2017 to approximately RMB 46.1 million in 2018[56]. Revenue Breakdown - Revenue from fabric sales increased by approximately 31.6% to about RMB 219.5 million, with total fabric sold rising from approximately 38.3 million meters in 2017 to about 48.8 million meters in 2018[24]. - Revenue from dyeing and finishing services rose by approximately 57.7% to about RMB 112.9 million, driven by an increase in sales orders from existing customers and a higher gross margin of approximately 33.3%[26]. - The average selling price of fabric remained stable at approximately RMB 4.50 per meter in 2018, compared to RMB 4.35 per meter in 2017[27]. Cost Structure - For the year ended December 31, 2018, the total sales and service costs amounted to RMB 265.8 million, an increase from RMB 192.2 million in 2017, representing a growth of approximately 38.3%[29]. - Raw materials accounted for 72.4% of total sales and service costs in 2018, increasing from 71.2% in 2017, with raw material costs rising to RMB 192.5 million from RMB 136.8 million, a growth of approximately 40.7%[30]. - Utility costs, the second largest component of sales and service costs, increased by RMB 12.2 million or 33.1% to RMB 48.9 million in 2018, accounting for 18.4% of total costs[30]. - Direct labor costs rose by 16.4% to RMB 9.0 million in 2018, representing 3.4% of total sales and service costs, attributed to an increase in production staff from 288 to 312 employees[31]. Corporate Governance - The company has committed to maintaining high standards of corporate governance to create value for shareholders[13]. - The company has a strong governance structure with independent non-executive directors overseeing audit and remuneration committees[115]. - The company’s independent non-executive director, Mr. Yu, has over 25 years of experience in auditing and accounting, enhancing the company’s financial oversight[117]. - The company has adopted the corporate governance code as per GEM listing rules, ensuring compliance since its listing date on February 26, 2019[128]. - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balanced composition for effective independent judgment[130]. Strategic Focus - The company aims to focus on increasing market share of its leading products while enhancing productivity, marketing, and brand strength in 2019[15]. - The capital platform established post-listing is expected to support further business growth and development[15]. - The company plans to allocate more resources to expand its dyeing services, reflecting a strategic shift towards simpler production processes with lower margins[33]. - The company is committed to environmental sustainability and promotes green measures in daily operations[182]. Management and Leadership - The company has a strong management team with diverse backgrounds in finance, accounting, and textile industry, enhancing operational efficiency and strategic execution[125]. - The company’s leadership team is well-educated, with advanced degrees in management and economics, contributing to informed decision-making[116]. - The company has appointed experienced professionals in key management positions to drive its strategic initiatives and operational efficiency[114]. Risk Management - The company has established a risk management framework that includes identifying significant risks, assessing their impact, and implementing necessary measures to manage those risks[157]. - The management regularly identifies and assesses operational risks to implement appropriate risk responses[190]. - The group has available undrawn bank financing of RMB 33,800,000, which, along with cash flow from operations, is deemed sufficient to meet operational needs for at least the next 12 months[194]. Cash Flow and Financing - Cash and cash equivalents increased to approximately RMB 56 million as of December 31, 2018, compared to approximately RMB 51 million in 2017, marking an increase of 9.8%[83]. - Net cash inflow from operating activities for the year ended December 31, 2018, was approximately RMB 53.9 million, reflecting a decrease from RMB 57.8 million in 2017[86]. - Total borrowings as of December 31, 2018, were approximately RMB 113.8 million, down from RMB 133.3 million in 2017, indicating a reduction of 14.7%[90]. Market Outlook - The textile industry in China is expected to continue growing due to strong domestic demand, with ongoing technological upgrades stimulating further development[18]. - The company is focusing on the promotion and application of functional fabric products, which have begun to establish a market presence domestically and internationally[20]. - The textile industry cluster formation is seen as an opportunity for sustainable development, allowing companies to share resources and stay updated on market trends[19].