Financial Summary [Consolidated Statement of Comprehensive Income](index=1&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) H1 2024 revenue grew 2.8% to RMB 770 million, gross profit fell 69.8%, yet net loss significantly narrowed to RMB 0.75 million. Summary of Consolidated Statement of Comprehensive Income (For the Six Months Ended June 30) | Metric | 2024 (RMB thousands) | 2023 (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 770,418 | 749,480 | +2.8% | | Gross Profit | 11,365 | 37,691 | -69.8% | | Operating Loss | (574) | (6,174) | -90.7% | | Loss Before Income Tax | (33) | (5,459) | -99.4% | | Loss for the Period | (747) | (8,499) | -91.2% | | Loss Per Share (RMB) | 0.1 fen | 0.9 fen | -88.9% | [Consolidated Statement of Financial Position](index=2&type=section&id=Unaudited%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total assets increased to RMB 522.38 million, total liabilities rose, and total equity remained stable. Summary of Consolidated Statement of Financial Position | Metric | June 30, 2024 (RMB thousands) | December 31, 2023 (RMB thousands) | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Non-current Assets | 23,906 | 24,479 | -2.3% | | Current Assets | 498,473 | 472,268 | +5.5% | | **Total Assets** | **522,379** | **496,747** | **+5.2%** | | **Equity and Liabilities** | | | | | Total Equity | 430,752 | 431,499 | -0.2% | | Non-current Liabilities | 24,112 | 24,052 | +0.2% | | Current Liabilities | 67,515 | 41,196 | +63.9% | | **Total Liabilities** | **91,627** | **65,248** | **+40.4%** | | **Total Equity and Liabilities** | **522,379** | **496,747** | **+5.2%** | Notes to the Financial Statements [General Information and Accounting Policies](index=2&type=section&id=1.%20General%20Information) This section provides detailed explanations and disclosures regarding accounting policies and financial statement items. - The Group's principal activities are the sale of refined oil products and other petrochemical products, and the blending and sale of fuel oil in China[3](index=3&type=chunk) - The Company's shares were transferred from GEM to the Main Board of the Stock Exchange on May 17, 2023[3](index=3&type=chunk) - The interim financial report is prepared in accordance with HKAS 34, with consistent accounting policies as the 2023 annual report[4](index=4&type=chunk) [Revenue and Segment Information](index=4&type=section&id=5.%20Revenue%20and%20Segment%20Information) All Group revenue originates from China, with refined oil sales becoming the core in H1 2024 at RMB 746 million, and service income growing 36.6%. Revenue Analysis (For the Six Months Ended June 30) | Item | 2024 Revenue (RMB thousands) | 2023 Revenue (RMB thousands) | YoY Change | | :--- | :--- | :--- | :--- | | **Sales of Goods** | | | | | — Refined Oil Products | 746,381 | 331,413 | +125.2% | | — Other Petrochemical Products | – | 400,470 | -100.0% | | **Subtotal** | **746,381** | **731,883** | **+2.0%** | | **Service Income** | 24,037 | 17,597 | +36.6% | | **Total Revenue** | **770,418** | **749,480** | **+2.8%** | [Income Tax Expense](index=6&type=section&id=9.%20Income%20Tax%20Expense) Income tax expense significantly decreased to RMB 0.714 million, primarily due to reduced taxable profits from China operations. - Income tax expense decreased by **76.5%** year-on-year, primarily due to reduced taxable profits from China operations[10](index=10&type=chunk)[31](index=31&type=chunk) - The standard corporate income tax rate for the Group's entities in China is **25%**[11](index=11&type=chunk) [Loss Per Share](index=7&type=section&id=10.%20Loss%20Per%20Share) Basic loss per share decreased from RMB 0.9 fen to RMB 0.1 fen due to a significant narrowing of net loss to RMB 0.75 million. Loss Per Share Calculation | Metric | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Loss for the Period (RMB thousands) | 747 | 8,499 | | Weighted Average Number of Ordinary Shares in Issue | 930,000,000 | 930,000,000 | | Basic Loss Per Share (RMB) | 0.1 fen | 0.9 fen | [Dividends](index=7&type=section&id=11.%20Dividends) The Board resolved not to declare an interim dividend for H1 2024, consistent with prior policy. - The Board does not recommend the payment of an interim dividend for 2024[14](index=14&type=chunk) Management Discussion and Analysis [Business Review](index=10&type=section&id=Business%20Review) This section provides management's perspective on the company's operational performance, financial condition, and future outlook. - The Group began exploring naphtha trading in H2 2023 to adapt to market changes driven by electric vehicle adoption[21](index=21&type=chunk) - Due to market price fluctuations, the company occasionally sold naphtha at a loss to maintain market position and reduce risk, resulting in a gross loss of approximately **RMB 12.67 million** from refined oil sales[21](index=21&type=chunk) - Service income from external transactions increased by **36.6%** to **RMB 24.04 million**, helping to mitigate risks[21](index=21&type=chunk) [Operating Results Analysis](index=11&type=section&id=Operating%20Results) Total revenue increased 2.8% to RMB 770 million, but gross profit sharply declined, while significant expense reductions narrowed the loss for the period. [Revenue](index=11&type=section&id=Revenue) Total revenue grew 2.8% to RMB 770 million, with refined oil product sales reaching RMB 746 million, increasing 125.2% and replacing other petrochemical sales. Revenue, Sales Volume, and Average Price by Product Line (For the Six Months Ended June 30) | Product Line | 2024 Revenue (RMB thousands) | 2024 Sales Volume (tonnes) | 2023 Revenue (RMB thousands) | 2023 Sales Volume (tonnes) | | :--- | :--- | :--- | :--- | :--- | | **Sales of Goods** | | | | | | Refined Oil Products | 746,381 | 106,218 | 331,413 | 50,003 | | Other Petrochemical Products | – | – | 400,470 | 60,959 | | **Service Income** | | | | | | Refined Oil Products | 24,037 | 180,229 | 7,294 | 11,458 | | Fuel Oil | – | – | 10,303 | 36,100 | | **Total** | **770,418** | **286,447** | **749,480** | **158,520** | [Gross Profit and Gross Margin](index=13&type=section&id=Gross%20Profit%20and%20Gross%20Margin) Overall gross profit sharply declined 69.8% to RMB 11.37 million, with gross margin falling to 1.5%, primarily due to a RMB 12.67 million gross loss from goods sales. Gross Profit and Gross Margin Analysis (For the Six Months Ended June 30) | Item | 2024 Gross Profit/(Loss) (RMB thousands) | 2024 Gross Margin | 2023 Gross Profit (RMB thousands) | 2023 Gross Margin | | :--- | :--- | :--- | :--- | :--- | | **Sales of Goods** | | | | | | Refined Oil Products | (12,672) | (1.7%) | 5,320 | 1.6% | | Other Petrochemical Products | – | Not Applicable | 14,774 | 3.7% | | **Subtotal** | **(12,672)** | **(1.7%)** | **20,094** | **2.7%** | | **Service Income** | 24,037 | Not Applicable | 17,597 | Not Applicable | | **Total** | **11,365** | **1.5%** | **37,691** | **5.0%** | [Expenses and Profitability](index=13&type=section&id=Administrative%20Expenses) Distribution expenses decreased 69.8% to RMB 5.16 million, and administrative expenses fell 52.9% to RMB 6.84 million, significantly narrowing the loss for the period. - Distribution expenses decreased by **69.8%**, primarily due to reduced short-term lease expenses and handling charges[27](index=27&type=chunk) - Administrative expenses decreased by **52.9%**, mainly due to no professional fees related to the Main Board transfer being recognized in the current period[28](index=28&type=chunk) - Loss for the period significantly decreased from **RMB 8.5 million** to **RMB 0.75 million**, primarily due to no provision for litigation losses and Main Board transfer fees in the current period, partially offset by reduced gross profit[32](index=32&type=chunk) [Liquidity and Financial Resources](index=15&type=section&id=Liquidity%20and%20Financial%20Resources) Net cash outflow from operating activities was RMB 119 million, leading to a decrease in cash and cash equivalents to RMB 85.78 million. Summary of Condensed Consolidated Cash Flow Statement (For the Six Months Ended June 30) | Item | 2024 (RMB thousands) | 2023 (RMB thousands) | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | (118,996) | (2,413) | | Net Cash From Investing Activities | 571 | 653 | | Net Cash From/(Used in) Financing Activities | 14,444 | (379) | | Net Decrease in Cash and Cash Equivalents | (103,981) | (2,139) | - As of June 30, 2024, the Group had no borrowings and was in a net cash position[36](index=36&type=chunk)[37](index=37&type=chunk) [Future Plans and Prospects](index=17&type=section&id=Future%20Plans%20and%20Prospects) The Group plans to leverage its refined oil market experience to play a larger role in Guangdong's energy supply chain, with IPO proceeds for oil depot renovation completed and pier berth enhancement ongoing. - The Group expects to leverage its experience and customer network in the refined oil market to play a greater role in the local supply chain, in response to energy security strategies[45](index=45&type=chunk) - Plans to enhance the berth capacity of Zengcheng oil depot are still under discussion with relevant government departments, with progress delayed by the pandemic, and construction expected to be completed in H2 2024[46](index=46&type=chunk)[48](index=48&type=chunk) Use of Net IPO Proceeds (As of June 30, 2024) | Purpose | Allocated Amount (RMB thousands) | Amount Utilized (RMB thousands) | Unutilized Amount (RMB thousands) | | :--- | :--- | :--- | :--- | | Enhancing Pier Berth Capacity | 11,038 | 7,564 | 3,474 | | Renovating Oil Depot Facilities | 9,765 | 9,765 | – | | **Total** | **20,803** | **17,329** | **3,474** | Corporate Governance and Other Information [Dividends and Securities Transactions](index=20&type=section&id=Interim%20Dividend) The Board does not recommend an interim dividend for 2024, and no listed securities were purchased, redeemed, or sold by the company or its subsidiaries. - The Board does not recommend the payment of any dividend for the six months ended June 30, 2024[52](index=52&type=chunk) - During the period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[53](index=53&type=chunk) [Corporate Governance and Compliance](index=21&type=section&id=Audit%20Committee) The company complied with HKEX Listing Rules' Corporate Governance Code, all directors adhered to securities dealing standards, and the Audit Committee reviewed the interim financial statements. - The Company has complied with all code provisions of the Corporate Governance Code as set out in Appendix C1 to the Listing Rules throughout the reporting period[54](index=54&type=chunk) - The Audit Committee has reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2024, and this announcement[58](index=58&type=chunk)

Financial Performance - The company's revenue for the year ended December 31, 2023, was approximately RMB 1.24 billion, a decrease of about RMB 295 million or 19.2% compared to the previous year[10]. - Gross profit for the same period was approximately RMB 57.9 million, down about RMB 15 million or 20.6% year-on-year[10]. - The total revenue for the year ended December 31, 2023, was approximately RMB 1,239,515,000, a decrease from RMB 1,534,524,000 in 2022, representing a decline of about 19.2%[12]. - The total sales cost for 2023 was approximately RMB 1,181,619,000, down from RMB 1,461,613,000 in 2022, reflecting a decrease of about 19.2%[13]. - Gross profit for the year 2023 was RMB 57,896,000, compared to RMB 72,911,000 in 2022, resulting in a gross margin decrease from 4.8% to 4.7%[15]. - The company reported a net loss of approximately RMB 1,509,000 for the year ended December 31, 2023, compared to a profit of RMB 31,745,000 in 2022[22]. - Adjusted profit for the year 2023 was RMB 20,333,000, down from RMB 35,029,000 in 2022, indicating a decline in operational performance[23]. Sales and Market Dynamics - The sales volume for the year was approximately 364,000 tons, with the product breakdown being 37.0% naphtha, 27.8% other chemical products, 23.6% gasoline, 11.3% fuel oil, and 0.3% diesel[6]. - The company adjusted and optimized its sales product structure in response to market changes, focusing on expanding sales channels for naphtha and industrial raw materials[6]. - The domestic refined oil and other chemical product demand market is expected to grow in 2024, despite ongoing competition in the refined oil industry[7]. - The average price of finished oil decreased from RMB 7,803 per ton in 2022 to RMB 6,847 per ton in 2023, reflecting market price fluctuations[12]. - The company’s total sales volume for finished oil in 2023 was 130,591 tons, compared to 75,726 tons in 2022, indicating an increase in sales volume despite revenue decline[12]. Operational Expenses - Distribution expenses increased by approximately RMB 1,931,000 or 13.5% to RMB 16,200,000 in 2023, primarily due to increased short-term operating lease costs for oil storage facilities[17]. - Administrative expenses rose by approximately RMB 9,993,000 or 73.4% to RMB 23,615,000 in 2023, mainly due to increased professional and other fees related to the application for transfer from GEM to the main board[18]. - Other net losses turned from a gain of RMB 3,095,000 in 2022 to a loss of RMB 13,243,000 in 2023, primarily due to litigation losses of RMB 13,267,000[16]. Cash Flow and Financial Position - For the year ended December 31, 2023, the net cash generated from operating activities was approximately RMB 82,541,000, a decrease from RMB 98,086,000 in 2022[24]. - The net cash generated from investing activities for the year was approximately RMB 929,000, primarily due to interest income from bank deposits[24]. - The net cash used in financing activities was approximately RMB 360,000, mainly due to lease payments[25]. - As of December 31, 2023, the group's cash and cash equivalents amounted to approximately RMB 189,706,000, compared to RMB 106,445,000 as of December 31, 2022[25]. - The net current assets as of December 31, 2023, were approximately RMB 431,072,000, an increase of approximately RMB 14,448,000 from RMB 416,624,000 in 2022[26]. - The group had no borrowings as of December 31, 2023, maintaining a cash surplus[27]. Corporate Governance - The company has complied with the GEM Listing Rules and the Corporate Governance Code during the financial year ending December 31, 2023[55]. - The board consists of seven members, including four executive directors and three independent non-executive directors[59]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with defined responsibilities[64]. - The chairman and CEO roles are clearly separated to ensure effective governance[60]. - The company has a robust internal control system to manage risks and ensure accountability[55]. - The board is responsible for setting strategic goals and overseeing the company's development[57]. Risk Management - The company has established a risk management and internal control system to ensure effective governance and compliance with relevant laws and regulations[84]. - The board is responsible for overall risk management, with management authorized to identify and monitor risks[86]. - The company has identified market risk, foreign exchange risk, liquidity risk, and operational risk as key risks[88][89][90]. - The company maintains sufficient cash and cash equivalents to manage liquidity risk effectively[89]. Environmental and Social Responsibility - The company is developing a green low-carbon strategy aligned with China's carbon neutrality goals, prioritizing suppliers with a low carbon footprint[106]. - The company is enhancing its sustainable development performance by monitoring global and Chinese environmental policies and regulatory trends[107]. - The company has not faced any significant fines or non-monetary sanctions for environmental law violations during the reporting period[120]. - The company prioritizes energy-efficient equipment and facilities to improve energy performance and reduce its carbon footprint[120]. - The company has implemented measures to mitigate acute and chronic physical risks associated with climate change, including monitoring weather-related impacts on storage environments[145]. Employee Management - The total number of employees as of December 31, 2023, is 23, with a decrease of 28.57% from 32 employees in 2022[151]. - The overall employee turnover rate for 2023 is approximately 32.73%, an increase from 31.25% in 2022[160]. - The company emphasizes the importance of employee welfare and mental health, implementing various measures to reduce turnover[160]. - The overall percentage of trained employees remained at 100% from 2022 to 2023[166]. - The average training hours per employee increased from 10.00 hours in 2022 to 13.91 hours in 2023, a rise of 39.10%[167]. Community Engagement - The company is committed to investing resources to support local communities, especially in health and safety due to COVID-19[181]. - The company has established policies to prevent child labor and forced labor, ensuring compliance with relevant laws[187]. - The company is committed to community engagement and considers community interests in its business activities[188].

Financial Performance - For the fiscal year ending December 31, 2023, the company's revenue was approximately RMB 1,239.5 million, a decrease of 19.2% compared to RMB 1,534.5 million for the fiscal year ending December 31, 2022[5]. - The gross profit for the fiscal year ending December 31, 2023, was approximately RMB 57.9 million, down 20.6% from RMB 72.9 million for the fiscal year ending December 31, 2022[5]. - The net loss for the fiscal year ending December 31, 2023, was approximately RMB 1.5 million, a significant improvement from a loss of RMB 31.7 million for the fiscal year ending December 31, 2022[5]. - The adjusted net profit for the fiscal year ending December 31, 2023, was approximately RMB 20.3 million, a decrease of 42.0% compared to RMB 35.0 million for the fiscal year ending December 31, 2022[5]. - The company’s operating profit for the fiscal year ending December 31, 2023, was RMB 4.8 million, a decrease from RMB 48.1 million for the fiscal year ending December 31, 2022[14]. - The company reported a net loss of approximately RMB 13,243,000 for the year ended December 31, 2023, compared to a net income of RMB 3,095,000 in 2022, primarily due to litigation losses[76]. - The adjusted profit for the year ended December 31, 2023, was approximately RMB 20,333,000, down from RMB 35,029,000 for the year ended December 31, 2022[87]. Assets and Liabilities - The total assets as of December 31, 2023, were approximately RMB 496.7 million, an increase of 3.1% from RMB 491.2 million as of December 31, 2022[16]. - Total equity increased to 431,499 from 418,384, representing a growth of approximately 2.67%[19]. - Total liabilities decreased to 65,248 from 72,818, indicating a reduction of about 10.43%[20]. - Total assets rose to 496,747 from 491,202, reflecting an increase of approximately 1.12%[21]. - As of December 31, 2023, the net current assets were approximately RMB 431,072,000, an increase of approximately RMB 14,448,000 from RMB 416,624,000 as of December 31, 2022[91]. - As of December 31, 2023, the group had no borrowings, maintaining a cash surplus[92]. Revenue Sources - The service revenue for the fiscal year ending December 31, 2023, was RMB 46.2 million, compared to RMB 12.6 million for the fiscal year ending December 31, 2022[5]. - The company reported a significant increase in sales of finished oil products, amounting to RMB 894.1 million for the fiscal year ending December 31, 2023, compared to RMB 590.9 million for the fiscal year ending December 31, 2022[5]. - Revenue from external customer transactions accounted for approximately 10% of total revenue, with Customer A contributing RMB 610,360,000[35]. - The total sales volume of refined oil products for the year ended December 31, 2023, was 130,591 tons, compared to 75,726 tons in 2022, representing an increase of approximately 72.5%[67]. Expenses and Costs - Total expenses for the year ending December 31, 2023, amounted to RMB 1,221,434,000, a decrease from RMB 1,489,504,000 in the previous year[37]. - The total cost of purchased fuel, oil, and other petrochemical products was RMB 1,099,607,000, a decrease from RMB 1,539,919,000 in the previous year[37]. - Administrative expenses increased by approximately RMB 9,993,000 or 73.4% to about RMB 23,615,000 for the year ended December 31, 2023, mainly due to professional fees related to the transfer to the main board listing[78]. - Distribution expenses rose by approximately RMB 1,931,000 or 13.5% to about RMB 16,200,000 for the year ended December 31, 2023, attributed to increased short-term operating lease costs for oil storage facilities[77]. Taxation and Financial Income - The company incurred a tax expense of RMB 7,326,000 for the year ending December 31, 2023, down from RMB 14,145,000 in the previous year[51]. - The effective corporate income tax rate for the company in mainland China remains at 25%[48]. - Financial income for the year was RMB 1,080,000, a decrease from RMB 1,187,000 in the previous year[40]. - The income tax expense decreased from approximately RMB 17,350,000 for the year ended December 31, 2022, to approximately RMB 7,243,000 for the year ended December 31, 2023, mainly due to a reduction in taxable profits from operations in China[82]. Market Conditions and Operations - The company experienced a cautious market atmosphere due to oil price fluctuations and slower-than-expected economic recovery post-COVID-19[64]. - The company operates mainly in the sale of refined oil and other petrochemical products in China, with all revenue sourced from this market[32]. - The average price of refined oil products sold in 2023 was RMB 6,847 per ton, down from RMB 7,803 per ton in 2022, reflecting a decrease of about 12.2%[67]. Corporate Governance and Compliance - The company has complied with the GEM Listing Rules and the Corporate Governance Code during the year ending December 31, 2023[126]. - The audit committee has reviewed the accounting principles and internal controls for the financial reporting matters, including the consolidated financial statements for the year ending December 31, 2023[128]. - The annual report for the year ending December 31, 2023, will be sent to shareholders and published on the stock exchange and the company's website[129]. Employee and Welfare - The total employee cost for the group was approximately RMB 4,958,000, down from RMB 5,825,000 in 2022, indicating a decrease of about 14.9%[101]. - The group currently employs 23 full-time employees in China as of December 31, 2023[101]. - The group has established various welfare plans for its employees in accordance with local laws and regulations, including basic medical insurance and unemployment insurance[103].

Financial Performance - The company reported a net loss before tax of RMB 5,459,000 for the six months ended June 30, 2023, compared to a profit of RMB 4,655,000 in the same period last year[14]. - Total revenue for the six months was RMB 37,691,000, an increase of 112.5% compared to RMB 17,730,000 in the previous year[23]. - For the six months ended June 30, 2023, the company reported a net loss of RMB 8,499,000, compared to a profit of RMB 2,489,000 for the same period in 2022[170]. - Basic loss per share for the period was RMB 0.3 cents, while the previous year reported a profit of RMB 0.3 cents per share[176]. - The total revenue for the six months ended June 30, 2023, was approximately RMB 749,480,000, representing an increase of 87.3% compared to the same period in 2022[195]. Cash Flow and Liquidity - The company’s cash and cash equivalents at the end of the period were RMB 104,466,000, a decrease from RMB 106,637,000 at the beginning of the period[58]. - Operating cash flow for the period was RMB 98,627,000, compared to a cash outflow of RMB 10,620,000 in the same period last year[55]. - Cash flow from operating activities for the same period was RMB 103,289,000[73]. - The company’s cash and cash equivalents showed a foreign exchange gain of RMB 160,000 for the six months ended June 30, 2023[120]. Expenses and Costs - The company incurred distribution expenses of RMB 17,097,000, up from RMB 7,431,000 in the previous year, reflecting a significant increase in operational costs[6]. - The total sales cost, distribution expenses, and administrative expenses amounted to RMB 743,391,000, an increase from RMB 395,779,000 in the previous year[116]. - The company reported a significant increase in the cost of purchased finished oil, fuel oil, and other petrochemical products, rising to RMB 795,410,000 from RMB 443,225,000[116]. - The cost of sales for the six months ended June 30, 2023, was approximately RMB 711,789,000, compared to RMB 382,396,000 for the same period in 2022[199]. Assets and Receivables - The company’s total assets amounted to RMB 418,384,000 as of June 30, 2023, compared to RMB 449,804,000 at the end of the previous year[30]. - The company reported a significant increase in trade and other receivables, totaling RMB 72,424,000, indicating potential growth in sales[19]. - Trade receivables as of June 30, 2023, amounted to RMB 39,319,000, an increase from RMB 34,306,000 as of December 31, 2022[147]. - The net amount of trade receivables after impairment was RMB 37,876,000, compared to RMB 32,863,000 in the previous period[147]. - The company reported a significant increase in recoverable VAT, rising to RMB 26,966,000 from RMB 14,740,000 in the previous period[147]. Market and Operational Strategy - The company plans to continue expanding its market presence and investing in new product development to drive future growth[52]. - The company experienced a cautious market atmosphere due to oil price fluctuations and geopolitical tensions, impacting trading activities[193]. - The company is committed to maintaining compliance with regulatory requirements and enhancing operational safety measures in its operations[52]. Sales and Revenue Breakdown - Service revenue for the six months ended June 30, 2023, was RMB 400,126,000[68]. - The company reported a decrease in finished oil sales from RMB 365,995,000 in 2022 to RMB 331,413,000 in 2023[90]. - The total sales for finished oil products amounted to RMB 331,413,000, while other petrochemical products totaled RMB 400,470,000 for the six months ended June 30, 2023[196]. - The average selling price for finished oil products decreased from RMB 7,925 to RMB 6,628, while other petrochemical products saw a drop from RMB 6,858 to RMB 6,569[196]. - The gross profit margin for port trade decreased from approximately 4.2% for the six months ended June 30, 2022, to about 2.7% for the same period in 2023 due to price negotiations becoming more cautious[194]. Legal and Compliance - The group faced a loss of RMB 12,263,000 related to litigation provisions for the six months ended June 30, 2023[93]. - The company recognized a loss provision of approximately RMB 12,263,000 related to a lawsuit against its subsidiary in China as of June 30, 2023[179]. - The group has not recognized any deferred tax liabilities due to the lack of taxable profits in Hong Kong[102]. Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2023, consistent with the previous year[144]. - The company’s total issued and paid-up ordinary shares remained at 930,000,000 as of June 30, 2023[181]. - The estimated applicable tax rate for the company's operations in mainland China remained at 25% for both 2023 and 2022[125].