Financial Performance - For the three months ended September 30, 2020, the company reported revenue of RMB 64,454,000, an increase of 12% compared to RMB 57,562,000 for the same period in 2019[6] - Gross profit for the same period was RMB 19,711,000, representing a 22% increase from RMB 16,162,000 year-over-year[6] - The operating profit for the three months ended September 30, 2020, was RMB 5,963,000, a decrease of 37% compared to RMB 9,445,000 in the previous year[6] - The net profit for the three months ended September 30, 2020, was RMB 4,442,000, down 36% from RMB 6,930,000 in the same quarter of 2019[6] - The total comprehensive income for the three months ended September 30, 2020, was RMB 5,818,000, compared to RMB 6,792,000 for the same period in 2019[6] - For the nine months ended September 30, 2020, the company achieved revenue of RMB 170,543,000, an increase of 9% from RMB 156,193,000 in the same period of 2019[6] - The gross profit for the nine months was RMB 50,985,000, up 13% from RMB 44,936,000 year-over-year[6] - The company reported a net profit of RMB 14,330,000 for the nine months ended September 30, 2020, which is consistent with RMB 14,346,000 in the previous year[6] - The total comprehensive income for the nine months was RMB 15,714,000, compared to RMB 14,199,000 for the same period in 2019[6] - The basic and diluted earnings per share for the three months ended September 30, 2020, were RMB 0.74, down from RMB 1.51 in the same quarter of 2019[6] Revenue Breakdown - The revenue from the "Jazz Rabbit" brand products for the nine months ended September 30, 2020, was RMB 151,948,000, representing an increase of 8.1% from RMB 139,822,000 in the same period of 2019[25] - The revenue from non-branded products for the three months ended September 30, 2020, was RMB 7,166,000, a significant increase of 45.2% compared to RMB 4,938,000 in the same period of 2019[25] Cost and Expenses - The gross profit for the nine months ended September 30, 2020, was RMB 170,543,000, compared to RMB 156,193,000 for the same period in 2019, reflecting a growth of 9.2%[25] - Selling costs increased by approximately RMB 8.3 million or about 7.5%, from approximately RMB 111.3 million for the nine months ended September 30, 2019, to approximately RMB 119.6 million for the same period in 2020[43] - Administrative and other operating expenses rose by approximately RMB 5.7 million or about 35.2%, from approximately RMB 16.3 million for the nine months ended September 30, 2019, to approximately RMB 22.1 million for the same period in 2020[44] - Research and development costs, including employee costs, for the nine months ended September 30, 2020, were RMB 4,287,000, down 28.6% from RMB 6,006,000 in the same period of 2019[26] - The total employee costs, including directors' remuneration, for the nine months ended September 30, 2020, were RMB 9,495,000, an increase of 5.5% from RMB 8,997,000 in the same period of 2019[26] Shareholder Information - As of the report date, Mr. Xu and Ms. Xu Liping each hold 301,500,000 shares of ordinary stock, representing 50.25% of the company's total shares[53] - Merit Winner Limited holds 67,500,000 shares, accounting for 11.25% of the company's total shares[57] - Sun Kong Investments (BVI) Limited owns 54,000,000 shares, which is 9.00% of the company's total shares[57] Dividends - The company declared a dividend of RMB 7,522,185 on July 2, 2020, to offset amounts receivable from the ultimate holding company[32] - No dividends were declared or proposed for the nine months ending September 30, 2020, compared to RMB 22,900,000 for the same period in 2019[64] Corporate Governance - The company has complied with the corporate governance code as per GEM Listing Rules Appendix 15[62] - There were no purchases, sales, or redemptions of the company's listed securities during the nine months ending September 30, 2020[61] - No conflicts of interest were reported among directors or major shareholders as of September 30, 2020[59] - The company has adopted a code of conduct for directors' securities transactions, adhering to GEM Listing Rules[63] - The company has not reported any violations of the securities trading regulations during the nine months ending September 30, 2020[63] - The audit committee has been established in accordance with the GEM listing rules, consisting of three independent non-executive directors[67] - The audit committee reviewed the unaudited consolidated financial statements for the nine months ended September 30, 2020, and confirmed compliance with applicable accounting standards and GEM listing rules[67] - The executive directors include Mr. Xu Youjiang, Ms. Xu Liping, and Mr. Zhang Yuansheng, while the independent non-executive directors are Mr. Li Kuilong, Mr. Liu Dajing, and Mr. Deng Zhihuang[68] Future Outlook - The company anticipates continued growth driven by the demand for environmentally friendly disposable plastic food containers and advancements in production technology[39] - The company plans to expand its market share by leveraging its experienced management team and enhancing brand promotion and sales channels[39] - The company faces competition from alternative products made from other materials, which may impact future growth[39] Capital Raising - The company raised approximately RMB 20.4 million through the issuance of 150,000,000 shares at HKD 0.4 per share during its listing on GEM on July 13, 2020[51]

Revenue and Profitability - The company's revenue increased from approximately RMB 986 million for the six months ended June 30, 2019, to approximately RMB 1,061 million for the six months ended June 30, 2020, representing an increase of approximately RMB 75 million or about 7.6%[11] - Revenue for the six months ended June 30, 2020, was RMB 106,089,000, an increase of 7.4% compared to RMB 98,631,000 for the same period in 2019[49] - Profit for the period rose from approximately RMB 7.4 million for the six months ended June 30, 2019, to approximately RMB 9.9 million for the six months ended June 30, 2020, marking a 33.3% increase[20] - Net profit for the six months ended June 30, 2020, was RMB 9,889,000, compared to RMB 7,416,000 for the same period in 2019, reflecting a growth of 33.4%[49] - Basic and diluted earnings per share for the six months ended June 30, 2020, were RMB 2.20, compared to RMB 1.59 for the same period in 2019, an increase of 38.4%[49] Cost and Expenses - The cost of sales rose from approximately RMB 699 million for the six months ended June 30, 2019, to approximately RMB 748 million for the six months ended June 30, 2020, an increase of approximately RMB 49 million or about 7.1%[12] - Administrative and other operating expenses decreased from approximately RMB 124 million for the six months ended June 30, 2019, to approximately RMB 113 million for the six months ended June 30, 2020, a reduction of approximately RMB 11 million or about 9.0%[16] - Financing costs decreased from approximately RMB 0.12 million for the six months ended June 30, 2019, to approximately RMB 0.10 million for the six months ended June 30, 2020, a decrease of approximately RMB 0.01 million or about 11.3%[18] - The company reported a total depreciation expense of RMB 3,038,000 for the six months ended June 30, 2020, compared to RMB 2,754,000 in the same period of 2019[80] - Research and development costs, including employee costs, amounted to RMB 2,867,000 for the six months ended June 30, 2020, down from RMB 4,205,000 in the same period of 2019[80] Gross Profit and Margins - Gross profit increased from approximately RMB 288 million for the six months ended June 30, 2019, to approximately RMB 313 million for the six months ended June 30, 2020, an increase of approximately RMB 25 million or about 8.7%[13] - The overall gross profit margin improved from approximately 29.2% for the six months ended June 30, 2019, to approximately 29.5% for the six months ended June 30, 2020[13] - Gross profit for the six months ended June 30, 2020, was RMB 31,275,000, representing a gross margin of 29.5%, up from RMB 28,774,000 in 2019[49] Taxation - Income tax expense increased from approximately RMB 3.7 million for the six months ended June 30, 2019, to approximately RMB 4.8 million for the six months ended June 30, 2020, representing a 29.6% increase[19] - The company reported a total tax expense of RMB 4,798,000 for the six months ended June 30, 2020, which is an increase of 60.1% from RMB 2,992,000 in the same period of 2019[84] - The company did not incur any tax provision due to no taxable profits generated in Hong Kong for the periods ended June 30, 2020, and June 30, 2019[81] Assets and Liabilities - As of June 30, 2020, total assets amounted to RMB 91,738,000, an increase from RMB 76,950,000 as of December 31, 2019, representing a growth of approximately 19.2%[51] - The total liabilities increased to RMB 33,354,000 as of June 30, 2020, from RMB 28,971,000 as of December 31, 2019, representing an increase of approximately 15.5%[51] - Net current assets increased from approximately RMB 48.0 million as of December 31, 2019, to approximately RMB 58.4 million as of June 30, 2020, driven by an increase in trade and other receivables by approximately RMB 1.7 million and cash and cash equivalents by approximately RMB 12.4 million[21] - Current ratio slightly improved from approximately 2.7 as of December 31, 2019, to approximately 2.8 as of June 30, 2020[22] - Debt-to-equity ratio remained stable at approximately 38.6% as of December 31, 2019, and approximately 37.9% as of June 30, 2020[22] Employee and Operational Metrics - The company employed a total of 133 employees as of June 30, 2020, compared to 125 employees as of December 31, 2019[24] - Employee costs, including directors' remuneration, were approximately RMB 6.2 million for the six months ended June 30, 2020, compared to approximately RMB 6.1 million for the same period in 2019[24] Strategic Plans and Market Position - The company aims to maintain product safety and environmental standards, enhance brand promotion, and expand sales channels as key growth drivers for its disposable plastic food containers business[10] - The company plans to utilize the net proceeds from its listing on July 13, 2020, to implement its business plans and expand market share[10] - The company continues to face external opportunities and challenges, including the popularity of eco-friendly disposable plastic food containers and competition from alternative products[10] Shareholder and Dividend Information - The company did not declare any interim dividend for the six months ended June 30, 2020, compared to RMB 22,900,000 in 2019[42] - The company declared and paid dividends totaling RMB 7,522,185 on July 2, 2020, to offset amounts receivable from the ultimate holding company and a shareholder[127] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2020, compared to RMB 22,900,000 in dividends paid for the same period in 2019[86] Investment and Capital Expenditures - The company has no significant investments or capital asset plans as of June 30, 2020[24] - The company completed the acquisition of Hengsheng Animation Broadcasting Co., Ltd. for RMB 20,000,000, impacting the equity position during the reporting period[54] - The company acquired property, plant, and equipment amounting to approximately RMB 3,657,000 during the six months ended June 30, 2020, compared to RMB 836,000 in the same period of 2019[91] Cash Flow and Financial Health - The net cash generated from operating activities for the six months ended June 30, 2020, was RMB 15,993,000, compared to RMB 7,399,000 for the same period in 2019, indicating a significant increase of approximately 116.4%[57] - The company's cash and cash equivalents increased to RMB 38,565,000 as of June 30, 2020, up from RMB 26,171,000 at the beginning of the period, reflecting a growth of approximately 47.4%[57] - The company reported a net cash outflow from investing activities of RMB 3,607,000 for the six months ended June 30, 2020, compared to RMB 811,000 for the same period in 2019, reflecting an increase in investment activities[57] Inventory and Receivables - Inventory increased to RMB 7,064,000 as of June 30, 2020, from RMB 6,390,000 as of December 31, 2019, representing a rise of approximately 10.5%[51] - Trade receivables from third parties as of June 30, 2020, were RMB 35,460,000, slightly up from RMB 35,442,000 as of December 31, 2019[100] - The company did not write off any trade receivables during the periods ending December 31, 2019, and June 30, 2020, with total trade receivables remaining stable[104] - The company expects to recover all trade and other receivables within one year, with no significant difference between their fair value and carrying amount[100] Compliance and Governance - The company maintained a strong internal control system and governance practices as per GEM listing rules[40] - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2020[45] - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2020, with no significant impact on the financial results[66]