Financial Performance - For the six months ended June 30, 2024, the group's revenue reached approximately RMB 1,790.2 million, an increase of approximately RMB 314.1 million or 21.3% compared to the same period in 2023[2] - The group's gross profit for the same period was approximately RMB 194.5 million, representing an increase of approximately RMB 27.9 million or 16.8% year-on-year[2] - The net profit for the six months ended June 30, 2024, was approximately RMB 4.4 million, a significant increase of approximately RMB 3.6 million or 404.8% compared to the previous year[2] - Basic earnings per share for the period were approximately RMB 0.005, an increase of approximately RMB 0.004 or 400% compared to the same period in 2023[2] - The company reported a total comprehensive income of RMB 596,000 for the period, compared to a loss of RMB 281,000 in the same period last year[4] - Profit before tax for the six months ended June 30, 2024, was RMB 4,447 thousand, significantly higher than RMB 881 thousand for the same period in 2023[20] Revenue Breakdown - Animal nutrition products generated revenue of RMB 617,525 thousand, up 34.6% from RMB 458,635 thousand in the previous year[12] - Revenue from pharmaceuticals and supplements increased to RMB 453,624 thousand, a rise of 28.6% from RMB 352,708 thousand[12] - Total revenue from external customers in mainland China was RMB 1,411,161 thousand, representing a growth of 18.9% from RMB 1,186,155 thousand[15] - Revenue from animal nutrition chemicals increased from approximately RMB 458.6 million for the six months ended June 30, 2023, to approximately RMB 617.5 million for the six months ended June 30, 2024, driven by increased sales of choline chloride, betaine, and the new product dimethylamine[37] - Revenue from fine chemicals increased from approximately RMB 336.9 million for the six months ended June 30, 2023, to approximately RMB 425.1 million for the six months ended June 30, 2024, attributed to increased sales of isooctanoic acid and cashew phenol[39] - Revenue from pharmaceutical products and intermediates increased from approximately RMB 352.7 million to approximately RMB 453.6 million, mainly due to increased income from iodine derivatives[40] Expenses and Costs - Cost of sales increased from approximately RMB 1,309.5 million to approximately RMB 1,595.7 million, primarily due to increased raw material costs for various products[43] - Selling and distribution expenses increased from approximately RMB 59.9 million to approximately RMB 75.8 million, driven by higher logistics costs and increased sales volume of animal nutrition products[48] - Administrative expenses rose from approximately RMB 56.7 million to approximately RMB 65.8 million, mainly due to feasibility studies for potential expansion plans and increased costs related to office space expansion[49] - R&D expenses decreased from approximately RMB 31.8 million to approximately RMB 26.9 million, primarily due to a reduction in personnel costs after restructuring the R&D team[50] - Financial costs increased from approximately RMB 19.3 million to approximately RMB 19.9 million, mainly due to rising factoring interest on discounted notes[51] - Income tax expenses decreased from approximately RMB 4.3 million to approximately RMB 2.5 million, with an effective tax rate of approximately 35.8% for the six months ending June 30, 2024[52] Assets and Liabilities - Total assets as of June 30, 2024, amounted to approximately RMB 1,066.4 million, compared to RMB 889.8 million as of December 31, 2023[5] - Current liabilities increased to approximately RMB 1,148.6 million as of June 30, 2024, compared to RMB 884.5 million as of December 31, 2023[6] - Trade payables rose significantly to RMB 427,476,000 as of June 30, 2024, compared to RMB 270,143,000 as of December 31, 2023, reflecting a 58.2% increase[26] - The total borrowings of the group were approximately RMB 771.8 million as of June 30, 2024, up from RMB 711.7 million as of December 31, 2023, with interest rates ranging from 1.3% to 7.2%[57] - The group's debt-to-equity ratio increased to 132.6% as of June 30, 2024, from 122.4% as of December 31, 2023, primarily due to the increase in borrowings[57] Operational Highlights - The company operates in four main business segments, including polyurethane materials, animal nutrition chemicals, fine chemicals, and pharmaceutical products and intermediates[28] - The fine chemicals segment's revenue rose from RMB 336.9 million to RMB 425.1 million, with gross profit increasing from RMB 14.9 million to RMB 40.0 million, attributed to increased production and sales of isooctanoic acid, cashew phenol, and diethyl sulfate[30] - The company is expanding its production capacity with new facilities for the production of trimethylamine and various pharmaceutical intermediates, expected to enhance competitive advantages in the industry[54] - The group has established a new production line for methylamine, which is a key raw material for choline chloride and betaine production[28] Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual as of June 30, 2024[81] - The audit committee has reviewed the group's financial reporting procedures and internal controls, ensuring adequate disclosure without disagreement[76] - The company will publish its interim report for the six months ending June 30, 2024, on the Hong Kong Stock Exchange and its own website, containing all information required by listing rules[82] Employee and Shareholder Information - As of June 30, 2024, the group had a total of 1,086 employees, a decrease from 1,108 in 2023, with total employee costs amounting to approximately RMB 67.9 million, up from RMB 62.2 million in 2023[70] - The group has established a share option plan and a share reward plan to incentivize and retain eligible participants, with a total of 50,900,000 shares available for grant as of June 30, 2024[71] - The group did not declare or pay any dividends for the six months ended June 30, 2024, and 2023[19] Risks and Future Outlook - The group faces various risks including market risk, credit risk, and liquidity risk, which could impact its financial condition and operational performance[57][61][63] - The group currently has no foreign currency hedging policy in place to manage foreign exchange risks[59][65] - The group has no major investment or capital expenditure plans for the upcoming year, relying on internal funds and other fundraising activities for future acquisitions[73]

目 錄 公司資料 2 財務概要 4 主席報告書 5 管理層討論與分析 9 董事及高級管理層履歷詳情 23 董事會報告 26 企業管治報告 38 環境、社會及管治報告 53 獨立核數師報告 78 綜合損益及其他全面收益表 81 綜合財務狀況表 82 綜合權益變動表 84 綜合現金流量表 85 綜合財務報表附註 87 GHW International | 2023 年 報 2 公司資料 ...

Financial Performance - For the year ended December 31, 2023, the group's revenue was approximately RMB 3,217.7 million, a decrease of about RMB 161.0 million or 4.8% compared to the same period in 2022[4] - The group's gross profit for the year was approximately RMB 337.0 million, down by approximately RMB 320.9 million or 48.8% year-on-year[4] - The net profit for the year was approximately RMB 2.7 million, a significant decrease of about RMB 271.9 million or 99.0% compared to 2022[4] - Basic earnings per share for the year were approximately RMB 0.003, a decrease of about RMB 0.272 or 98.9% compared to the previous year[4] - Total comprehensive income for the year was RMB 1,818 thousand, compared to RMB 263,912 thousand in 2022[18] - The company's net profit attributable to owners for the year ended December 31, 2023, was approximately RMB 2.7 million, a significant decrease from RMB 274.6 million in 2022[83] - The decline in profitability was primarily due to a reduction in gross profit from approximately RMB 657.9 million in 2022 to about RMB 337.0 million in 2023[83] Revenue Breakdown - Total revenue for 2023 was RMB 3,217,669,000, a decrease of 4.76% from RMB 3,378,707,000 in 2022[38] - Revenue from animal nutrition products was RMB 1,059,706,000, down 10.21% from RMB 1,180,366,000 in 2022[38] - Revenue from pharmaceuticals was RMB 734,352,000, a decrease of 2.92% from RMB 754,048,000 in 2022[38] - Revenue from fine chemicals was RMB 720,607,000, down 1.85% from RMB 732,114,000 in 2022[38] - Revenue from polyurethane materials was RMB 689,579,000, a decrease of 1.77% from RMB 698,839,000 in 2022[38] - Revenue from mainland China was RMB 2,524,520,000, down 9.26% from RMB 2,782,741,000 in 2022[42] - Revenue from self-manufactured chemicals was RMB 2,189.8 million, accounting for 68.1% of total revenue, while third-party produced chemicals generated RMB 1,014.4 million, accounting for 31.5%[91] Expenses and Costs - Sales cost increased from approximately RMB 2,720.8 million for the year ended December 31, 2022, to approximately RMB 2,880.7 million for the year ended December 31, 2023, primarily due to high global iodine prices and increased raw material costs for new product methylamine[106] - Administrative expenses increased from approximately RMB 104.5 million in 2022 to approximately RMB 123.5 million in 2023, driven by feasibility studies for potential expansion plans and increased environmental and safety production costs[116] - Financial costs for 2023 totaled RMB 39,207,000, an increase of 5.88% from RMB 36,988,000 in 2022[49] - Sales and distribution expenses decreased from approximately RMB 151.8 million in 2022 to approximately RMB 132.8 million in 2023, mainly due to reduced logistics costs[119] Assets and Liabilities - The group's total assets less current liabilities amounted to RMB 857,882 thousand, a decrease from RMB 898,307 thousand in the previous year[26] - Non-current liabilities totaled RMB 276,465 thousand, down from RMB 295,687 thousand in 2022[26] - The group's cash and cash equivalents were RMB 77,393 thousand, a decrease from RMB 103,183 thousand in the previous year[25] - Total assets as of December 31, 2023, reached approximately RMB 1,742.4 million, an increase from RMB 1,678.6 million in 2022[132] - Total borrowings as of December 31, 2023, amounted to approximately RMB 711.7 million, an increase from RMB 655.9 million in 2022, resulting in a debt-to-equity ratio of 122.4%[132] Taxation - The company's current tax for 2023 is RMB 1,831,000, a decrease of 77% from RMB 7,947,000 in 2022[55] - The total deferred tax for 2023 is RMB (11,368,000), compared to RMB 25,315,000 in 2022, indicating a significant change in tax liabilities[55] - Income tax expenses decreased from approximately RMB 33.4 million in 2022 to a tax credit of approximately RMB 9.5 million in 2023, consistent with the decline in pre-tax profits[124] Dividends - The board has resolved not to recommend the payment of any final dividend for the year ended December 31, 2023[4] - The company has not declared or paid any dividends for both 2022 and 2023[57] - The group did not recommend any final dividend for the year ending December 31, 2023, similar to 2022[156] Market and Operational Challenges - The company faced challenges due to oversupply in the market for its main products, leading to decreased prices and profitability[79] - The company is vigilant regarding the impact of international events, such as the Russia-Ukraine war, on its operations and will take appropriate measures as necessary[129] - The company has not implemented foreign currency hedging policies but monitors foreign exchange risks and will consider hedging when necessary[136] Future Plans and Investments - The company plans to expand its product range and has conducted feasibility studies for potential expansion plans in regions such as Malaysia[83] - The new production facility in Taian is expected to start producing Moxifloxacin side chains in 2024, enhancing the company's competitive advantage in production scale and technology[127] - The company acquired land use rights in Binh Duong Province for approximately VND 33.88 billion (around RMB 10 million) to expand production of choline chloride and iodine derivatives for export to Western countries, with production expected to commence in 2024[127] - An agreement was signed for the acquisition of land in Mukim Gebeng, Malaysia for MYR 37.03 million (approximately RMB 55.54 million) to diversify production systems in Southeast Asia, aiming to increase market share and reduce geopolitical risks[128] Corporate Governance - The audit committee has reviewed the accounting principles and practices adopted by the group, discussing audit, internal control, and risk management matters for the year ending December 31, 2023[176] - The company has adopted the corporate governance code and has complied with all provisions except for the separation of the roles of chairman and CEO, which are held by the same individual[183] - The company emphasizes the importance of clear and timely communication with shareholders and investors, maintaining high transparency through various reports and announcements[188] Employee and Operational Metrics - The total employee cost for the year, including director remuneration, was approximately RMB 135.8 million, compared to RMB 118.0 million in 2022, with a total of 1,098 employees as of December 31, 2023[157] - The group maintained a cautious treasury policy, ensuring a good liquidity position throughout the year[148]

Financial Position - As of June 30, 2023, the company reported non-current assets of RMB 822,984,000, an increase from RMB 769,340,000 as of December 31, 2022, representing a growth of approximately 6.96%[13] - The company's current assets totaled RMB 921,838,000 as of June 30, 2023, compared to RMB 909,293,000 at the end of 2022, indicating a slight increase of about 1.8%[13] - Total liabilities as of June 30, 2023, were RMB 921,718,000, up from RMB 780,326,000 at the end of 2022, reflecting an increase of approximately 18.1%[13] - The company reported a net asset value of RMB 602,339,000 as of June 30, 2023, which is consistent with RMB 602,620,000 reported at the end of 2022, showing stability in equity[14] - The company’s total equity remained stable at RMB 602,339,000 as of June 30, 2023, compared to RMB 602,620,000 at the end of 2022, reflecting no significant changes in shareholder equity[14] - As of June 30, 2023, total borrowings amounted to approximately RMB 739.7 million, an increase from RMB 655.9 million as of December 31, 2022[95] - The group's debt-to-equity ratio increased to 122.8% as of June 30, 2023, from 108.8% as of December 31, 2022, primarily due to increased bank borrowings during the period[113] Revenue and Profitability - For the six months ended June 30, 2023, the company recorded revenue of approximately RMB 1,476.1 million, a decrease of 7.6% compared to RMB 1,598.1 million in the same period of 2022[39] - The decline in revenue was primarily due to a significant drop in market prices for self-produced animal nutrition products, leading to decreased sales in mainland China[39] - The total comprehensive income for the six months ended June 30, 2023, was RMB (281) thousand, compared to RMB 168,054 thousand for the same period in 2022[19] - The company reported a profit of RMB 881 thousand for the six months ended June 30, 2023, compared to a profit of RMB 170,804 thousand for the same period in 2022[19] - Gross profit for the six months ended June 30, 2023, was approximately RMB 166.6 million, down from RMB 377.1 million for the same period in 2022, resulting in a gross margin of 11.3% compared to 23.6%[57][65] - The company recorded a profit of approximately RMB 0.9 million for the six months ended June 30, 2023, a significant decrease from RMB 170.8 million for the same period in 2022[70] Operational Performance - The company’s trade receivables increased to RMB 221,892,000 as of June 30, 2023, from RMB 219,351,000 at the end of 2022, marking a growth of approximately 1.1%[13] - The company’s inventory stood at RMB 360,425,000 as of June 30, 2023, slightly up from RMB 359,140,000 at the end of 2022, indicating a marginal increase of about 0.36%[13] - The company incurred a net cash outflow from investing activities of RMB 99,948 thousand for the six months ended June 30, 2023, compared to RMB 104,735 thousand in the same period of 2022[19] - The company raised new borrowings of RMB 265,152 thousand during the six months ended June 30, 2023, compared to RMB 253,516 thousand in the same period of 2022[19] - The company’s capital expenditure amounted to approximately RMB 24.0 million, an increase from RMB 17.0 million as of December 31, 2022, primarily for the purchase of machinery and equipment[122] Market Conditions - The overall financial performance was impacted by a downturn in the domestic and global chemical intermediate markets, driven by a decline in the real estate market and rising interest rates[38] - Despite a 50% increase in sales volume of choline chloride, the gross profit and gross margin decreased by approximately 45% and 10%, respectively, due to oversupply in the market and declining prices[50] - The company anticipates that the termination of paraxylene sales since July 2022 will narrow the profit margins from this product line[39] - The global iodine market prices remained at historical highs during the period, but the company could not expand gross margins through strategic procurement plans[50] Corporate Governance - The board of directors resolved not to declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[8] - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2023[7] - The company did not recommend any interim dividend for the six months ended June 30, 2023, consistent with the previous year[143] - The company confirmed compliance with all corporate governance codes except for the separation of the Chairman and CEO roles, which is under review[166] - Mr. Yin holds approximately 55.31% of the company's issued share capital, making him the controlling shareholder[159] Employee and Administrative Expenses - The total employee cost for the six months ended June 30, 2023, was approximately RMB 62.2 million, compared to RMB 59.5 million for the same period in 2022, with a total of 1,108 employees as of June 30, 2023, up from 969 in 2022[125] - Administrative expenses increased from approximately RMB 53.4 million to approximately RMB 56.7 million, primarily due to increased feasibility study costs for potential expansion plans[87] Research and Development - Research and development expenses are recognized as incurred, reflecting the nature of the activities aimed at improving production efficiency and developing production equipment[88] - Research and development expenses decreased from approximately RMB 359 million for the six months ended June 30, 2022, to approximately RMB 318 million for the six months ended June 30, 2023, due to completed production technology enhancement projects[106] Cash Flow and Liquidity - As of June 30, 2023, the net cash generated from operating activities was RMB 26,987 thousand, a significant improvement from a net cash outflow of RMB 86,550 thousand in the same period of 2022[19] - The company maintained a prudent treasury policy, ensuring a good liquidity position throughout the period, with a focus on continuous credit reviews of customers to mitigate credit risk[120] - As of June 30, 2023, the company had restricted bank deposits of approximately RMB 49.0 million, up from RMB 33.9 million as of December 31, 2022[142] Future Plans and Investments - The company plans to fund future acquisitions through internal funds and other fundraising activities, including issuing new debt or equity instruments[147] - The group has invested approximately RMB 10 million in acquiring land use rights in Vietnam to expand production capacity for choline chloride and iodine derivatives[109] - The company has no major investments or capital asset plans for the coming year, aside from those disclosed in the prospectus[129]

Financial Performance - The company's net profit attributable to shareholders for the year ended December 31, 2022, was approximately RMB 274.6 million, an increase from RMB 130.7 million in 2021, representing a growth of 109.5%[25] - For the fiscal year ending December 31, 2022, the company recorded revenue of approximately RMB 3,378.7 million, an increase of 19.3% compared to RMB 2,833.3 million in 2021[42] - Gross profit for the same period was approximately RMB 657.9 million, representing a 38.2% increase from RMB 476.1 million in 2021[42] - Net profit for the year was approximately RMB 274.6 million, a significant increase of 110.1% compared to RMB 130.7 million in 2021[42] - The company's total assets reached approximately RMB 1,678.6 million as of December 31, 2022, up from RMB 1,367.3 million in 2021, with cash and cash equivalents amounting to RMB 103.2 million[119] - The debt-to-equity ratio improved to 108.8% as of December 31, 2022, down from 203.8% in 2021, primarily due to increased profits during the year[120] Revenue Breakdown - Revenue from the polyurethane materials segment decreased from approximately RMB 845.0 million in 2021 to approximately RMB 698.8 million in 2022, a decline of 17.4% due to reduced demand in the construction and home appliance industries[27] - Revenue from glycol, a new trading product produced by a third party, was approximately RMB 131.0 million in 2022, up from RMB 111.9 million in 2021, indicating a growth of 17.3%[30] - The company's self-manufactured chemical products generated revenue of RMB 2,326.9 million, accounting for 68.9% of total revenue, up from 59.6% in 2021[55] - Revenue from third-party manufactured chemicals was RMB 1,038.5 million, representing 30.7% of total revenue, down from 40.0% in 2021[55] - Sales of choline chloride in the animal nutrition chemicals segment accounted for approximately 75% of the segment's revenue, increasing from RMB 727.6 million in 2021 to 904.0 million in 2022[57] - Revenue from the sales of iodine and iodine derivatives increased from RMB 585.9 million in 2021 to RMB 754.0 million in 2022, primarily due to rising average selling prices[59] Expenses and Costs - Tax expenses increased from approximately RMB 15.3 million in 2021 to approximately RMB 33.4 million in 2022, aligning with the increase in profit before tax[6] - Financial costs increased from approximately RMB 29.8 million in 2021 to approximately RMB 37.0 million in 2022, primarily due to higher average levels of outstanding term loans and loans from related parties[5] - Sales cost increased from approximately RMB 2,357.2 million for the year ended December 31, 2021, to approximately RMB 2,720.8 million for the year ended December 31, 2022, due to rising raw material prices in various business segments[61] - R&D expenses increased from approximately RMB 592 million for the year ended December 31, 2021, to approximately RMB 773 million for the year ended December 31, 2022, primarily due to increases in raw material costs, employee costs, and electricity costs[139] Production and Capacity Expansion - The company is expanding its production capacity by establishing a new plant in the Tai'an Daiyue Chemical Industrial Park, focusing on the production of trimethylamine and various pharmaceutical intermediates[47] - A new production facility is being established in the western area of the existing production plant in Tai'an, which will include facilities for producing trimethylamine and a pilot plant for various pharmaceutical intermediates[116] - The company invested VND 33,880,000,000 (approximately RMB 10 million) to acquire land use rights in Binh Duong Province, Vietnam, expected to expand production of choline chloride and iodine derivatives for export to Western countries[116] Market and Business Environment - The contribution of revenue from outside mainland China decreased from approximately 18.5% in 2021 to 17.6% in 2022, primarily due to reduced sales of animal nutrition chemicals amid ongoing COVID-19 impacts[18] - The company remains vigilant regarding the ongoing impacts of the COVID-19 pandemic and international events on its financial advisory, brokerage, asset management, and investment management services[20] - The increase in profits is attributed to the recovery of operations in mainland China post-COVID-19, despite rising sales and distribution expenses and increased research and development costs[44] Risk Management - The group faces various risks including market risk, credit risk, and liquidity risk, which may impact its financial condition and operational performance[101] - The group's credit risk is primarily attributed to trade receivables, with management implementing measures to minimize this risk[136] - The group has not implemented any foreign currency hedging policies but monitors foreign exchange risks[102] Corporate Governance and Social Responsibility - The company has actively participated in sustainable development and social responsibility, adhering to environmental laws and regulations[153] - The group made charitable donations totaling approximately RMB 197,000 in the fiscal year ending December 31, 2022, compared to zero in 2021[160] - The company has not encountered any significant violations of applicable laws and regulations that would materially impact its business and operations for the year ended December 31, 2022[130] Shareholder Information - The company did not declare any final dividend for the year ended December 31, 2022, consistent with the previous year[70] - The board does not recommend the payment of any dividends for the year ended December 31, 2022, consistent with 2021[131] - The company's reserves available for distribution to shareholders as of December 31, 2022, amounted to approximately RMB 835 million, an increase from RMB 769 million in 2021[183]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份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。 GHW International （於開曼群島註冊成立的有限公司） （股份代號：9933） 年 度 業 績 公 告 截 至2022年12月31日 止 年 度 財務摘要 • 截至2022年12月31日止年度，本集團的收益達約人民幣3,378.7百萬元，與 2021年同期相較，增加約人民幣545.4百萬元或19.3%。 • 截至2022年12月31日止年度，本集團的毛利達約人民幣657.9百萬元，與 2021年同期相較，增加約人民幣181.8百萬元或38.2%。 • 截至2022年12月31日止年度，本集團的淨溢利達約人民幣274.6百萬元，與 2021年同期相較，增加約人民幣143.9百萬元或110.1%。 • 截至2022年12月31日止年度，本集團的每股基本盈利達約人民幣0.275元， ...

Revenue and Profitability - For the six months ended June 30, 2022, GHW International reported revenue of approximately RMB 1,598.1 million, an increase of 34.8% compared to RMB 1,185.8 million in the same period last year[10]. - The net profit attributable to the owners of the company for the six months ended June 30, 2022, was approximately RMB 170.8 million, a significant increase of 531.8% compared to RMB 27.0 million for the same period in 2021[12]. - Gross profit rose from approximately RMB 173.8 million for the six months ended June 30, 2021, to approximately RMB 377.1 million for the same period in 2022, driven by higher average selling prices of key products and effective procurement strategies[12]. - Total revenue for the six months ended June 30, 2022, was RMB 1,598.1 million, compared to RMB 1,185.8 million for the same period in 2021, representing a year-on-year increase of 35.0%[14]. - The company reported a profit before tax of RMB 199,079 thousand, up from RMB 31,424 thousand in the previous year, reflecting a growth of 532%[102]. - The total comprehensive income for the period was RMB 168,054 thousand, compared to RMB 28,716 thousand for the same period in 2021, indicating a significant increase[106]. Revenue Breakdown by Segment - Revenue from animal nutrition chemicals increased significantly from approximately RMB 369.1 million to RMB 565.4 million, primarily due to higher average selling prices of choline chloride and betaine[18]. - Revenue from pharmaceutical products and intermediates increased from approximately RMB 268.8 million to RMB 370.0 million, driven by higher average selling prices of iodine and iodine derivatives[23]. - Revenue from fine chemicals rose from approximately RMB 153.8 million to RMB 351.6 million, attributed to increased sales of cashew phenol and isooctanoic acid, as well as new trading products like ethylene glycol[22]. - Sales of polyurethane materials decreased from approximately RMB 389.0 million to RMB 304.8 million, mainly due to a reduction in sales volume of MDI and TDI products[16]. Market and Operational Factors - The increase in revenue was primarily driven by higher market prices for key products such as choline chloride and betaine, along with increased sales of self-manufactured products like iso-octanoic acid and cashew phenol due to market share growth[11]. - The company experienced a decline in sales volume for third-party manufactured trade products, specifically polymer MDI and TDI, due to operational disruptions in European and American production facilities caused by severe weather in Q1 2021[11]. - The impact of the COVID-19 pandemic in early 2022 affected downstream industries in China, particularly the construction and home appliance sectors, leading to decreased demand for polymer MDI and TDI[11]. Research and Development - The company emphasizes the importance of research and development in production processes and product customization capabilities to enhance its competitive edge in the market[7]. - The company plans to expand its research and development efforts, particularly in artificial intelligence system upgrades and production technology improvements, which have led to increased R&D expenditures[12]. - R&D expenses increased from approximately RMB 21.6 million for the six months ended June 30, 2021, to approximately RMB 35.9 million for the six months ended June 30, 2022, primarily due to rising raw material costs of about RMB 8.0 million, employee costs of about RMB 1.6 million, and electricity costs of about RMB 3.1 million[34]. Financial Position and Assets - As of June 30, 2022, total assets reached approximately RMB 1,661.6 million, up from RMB 1,367.3 million as of December 31, 2021, while cash and bank balances were approximately RMB 70.9 million, compared to RMB 58.0 million[41]. - The company's debt-to-equity ratio improved to 133.5% as of June 30, 2022, down from 203.8% as of December 31, 2021, primarily due to increased profits during the period[42]. - Total borrowings amounted to approximately RMB 760.0 million as of June 30, 2022, an increase from RMB 691.2 million as of December 31, 2021[41]. Expenses and Costs - Sales and distribution expenses rose from approximately RMB 63.5 million to RMB 82.1 million, primarily due to increased employee compensation and logistics costs[32]. - Administrative expenses increased from approximately RMB 45.2 million to RMB 53.4 million, mainly due to performance bonuses linked to improved operational results[33]. - Financial costs rose from approximately RMB 13.0 million for the six months ended June 30, 2021, to approximately RMB 18.2 million for the six months ended June 30, 2022, mainly due to an increase in average borrowing levels during the period[35]. Risks and Challenges - The company faces significant risks due to the COVID-19 pandemic, which has delayed the expansion plans for the new production facility[46]. - The company is exposed to currency risk due to transactions conducted in currencies other than its functional currency[50]. - The group faced foreign exchange risks due to transactions primarily denominated in RMB and USD, but did not undertake any financial instruments to hedge these risks during the period[58]. Shareholder and Management Information - The major shareholder, Mr. Yin, held approximately 55.31% of the company's issued share capital, totaling 553,141,500 shares[84]. - The group did not recommend any interim dividend for the six months ended June 30, 2022, consistent with the previous year[63]. - The company did not enter into any stock-linked agreements during the reporting period[89].

Financial Performance - The company reported revenue of approximately RMB 2,833.3 million for the fiscal year 2021, an increase of 34.7% compared to RMB 2,103.9 million in 2020[11]. - Gross profit for the fiscal year 2021 was approximately RMB 476.1 million, representing a 74.2% increase from RMB 273.3 million in 2020[11]. - The company achieved a net profit of approximately RMB 130.7 million in 2021, recovering from a net loss of RMB 5.2 million in 2020[11]. - The company reported a net profit attributable to shareholders of approximately RMB 130.7 million for the year ended December 31, 2021, compared to a loss of RMB 5.2 million in 2020, resulting in a basic earnings per share of RMB 13.1, up from a loss of RMB 0.5 per share in 2020[14]. - The profit attributable to the owners of the company for the year ended December 31, 2021, was approximately RMB 130.7 million, compared to a loss of RMB 5.2 million in 2020[29]. - Gross profit increased from approximately RMB 273.3 million for the year ended December 31, 2020, to approximately RMB 476.1 million for the year ended December 31, 2021[30]. - The company recorded a profit of approximately RMB 1,307 million for the year ended December 31, 2021, compared to a loss of approximately RMB 52 million for the year ended December 31, 2020[53]. Revenue Segments - The animal nutrition chemicals segment saw significant growth in revenue, gross profit, and gross margin due to rising market prices for key products like choline chloride and betaine[11]. - The fine chemicals segment also experienced substantial growth, with revenue contributions from self-manufactured products and the introduction of ethylene glycol, generating approximately RMB 111.9 million in revenue[13]. - The iodine and iodine derivatives segment generated gross profit exceeding RMB 109.3 million, up from RMB 41.3 million the previous year, driven by increased demand in downstream industries[13]. - Revenue from the polyurethane materials segment increased from approximately RMB 700.3 million in 2020 to approximately RMB 844.9 million in 2021, primarily due to higher average selling prices of key products[34]. - The animal nutrition chemicals segment generated revenue of RMB 952.2 million, accounting for 33.6% of total revenue, compared to RMB 757.9 million and 36.0% in 2020[33]. - The fine chemicals segment's revenue increased to RMB 438.9 million, representing 15.5% of total revenue, up from RMB 212.6 million and 10.1% in 2020[33]. - The pharmaceutical products and intermediates segment generated revenue of RMB 585.9 million, accounting for 20.7% of total revenue, compared to RMB 423.3 million and 20.1% in 2020[33]. Market Expansion and Strategy - The company plans to explore new overseas markets, including Brazil and Indonesia, to expand its customer base for betaine products[11]. - The company continues to enhance its brand, explore new overseas markets, and expand production lines for new products despite challenges posed by the pandemic[16]. - The company is focused on becoming one of the largest suppliers of application chemical intermediates globally, particularly in the animal nutrition and feed additive sectors[17]. - The company plans to establish a new production facility in the Tai'an Daiyue Chemical Industry Park, which will include production for trimethylamine and various pharmaceutical intermediates, aiming to capture market share amid challenging conditions[20]. Financial Position and Assets - Total assets as of December 31, 2021, were RMB 1,367.3 million, compared to RMB 1,021.7 million in 2020, while total liabilities increased to RMB 1,028.2 million from RMB 816.3 million[8]. - The company's net asset value rose to RMB 339.1 million in 2021, up from RMB 205.5 million in 2020[8]. - The company's debt, including loans from a related company, increased to approximately RMB 6,912 million as of December 31, 2021, from RMB 5,629 million in 2020[57]. - The debt-to-equity ratio improved to 203.8% as of December 31, 2021, down from 273.9% in 2020, primarily due to increased profits during the year[58]. Costs and Expenses - Financial costs have increased due to a rise in average bank and other borrowings, including bank-discounted receivables and loans from related companies[14]. - Selling and distribution expenses rose from approximately RMB 117.2 million for the year ended December 31, 2020, to approximately RMB 143.2 million for the year ended December 31, 2021, attributed to increased logistics costs[48]. - Administrative expenses increased from approximately RMB 83.0 million for the year ended December 31, 2020, to approximately RMB 102.6 million for the year ended December 31, 2021, due to severance payments and increased employee bonuses[49]. - R&D expenses increased from approximately RMB 43.3 million for the year ended December 31, 2020, to approximately RMB 59.2 million for the year ended December 31, 2021, driven by higher raw material costs and consulting fees for new potential pharmaceutical products[50]. Risk Management - The company is facing risks related to market fluctuations, including currency and interest rate risks, which could impact financial performance[63][64]. - Credit risk is primarily associated with trade receivables, and the company has implemented measures to mitigate this risk, including credit limits and monitoring procedures[67]. - The company has no current foreign currency hedging policy but monitors foreign exchange risks and will consider hedging as necessary[64]. - The company aims to maintain a reasonable balance between fixed and floating rate borrowings to manage interest rate risks effectively[66]. Corporate Governance - The company has a risk management committee in place, indicating a structured approach to identifying and mitigating potential risks[86]. - The company has a diverse board of directors, including independent non-executive members with extensive academic and industry backgrounds, enhancing governance and oversight[88][89][90]. - The company has established a comprehensive environmental policy and performance metrics, reflecting its commitment to sustainability[92]. - The company has adopted the corporate governance code and complied with all provisions except for one specific deviation[156]. - The audit committee, consisting of three independent non-executive directors, has reviewed the group's financial reporting procedures and risk management systems[153]. Shareholder Information - The controlling shareholder, Mr. Yin, holds approximately 55.31% of the company's issued share capital[128]. - The total number of shares held by major shareholders is significant, with the largest single holding being 553,141,500 shares[145]. - The company did not recommend any final dividend for the year ended December 31, 2021, consistent with 2020[102]. Operational Challenges - The ongoing pandemic has significantly impacted the supply chain, product demand, and operational capabilities, affecting the company's expansion plans and creditworthiness of trade receivables[16]. - The construction of new production facilities has been affected by delays in normal operations due to the pandemic, impacting the overall project timeline[61]. - The group's trading activities in Ukraine were suspended due to the Russian invasion, significantly impacting the subsidiary's business, although their financial contribution was minimal[148].

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|------------------------------------------------|-------------------|-------|-------|-------|---------------|-------|---------------|-------| | | | | | | | | | | | | | | | | | | | | | | | | 41-GHW | | | | | | | | | | | | GHW International | | | | | | | | | | (於開曼群島註冊成立的有限公司) 股份代號 : 9933 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | m | | | | | | | | | | m m प्रभ ITET | ur E | | | | | | | | | | | | | | | | ...

Financial Performance - The company reported revenue of approximately RMB 2,103.9 million for the fiscal year ending December 31, 2020, representing a 7.0% increase from RMB 1,966.1 million in 2019[17]. - Gross profit for the year was RMB 273.3 million, up from RMB 245.7 million in 2019, indicating a positive trend in profitability[10]. - The company experienced a loss before tax of RMB 6.6 million, compared to a profit of RMB 31.8 million in the previous year[10]. - The company reported a loss attributable to owners of approximately RMB 5.2 million for the year ended December 31, 2020, compared to a profit of RMB 29.1 million in 2019, marking a decrease of 112.8%[21]. - The company recorded a net foreign exchange loss of approximately RMB 15.7 million, contrasting with a net gain of RMB 6.4 million in the previous year, primarily due to the depreciation of the US dollar against the RMB[21]. - The company experienced significant increases in sales and distribution expenses due to rising logistics costs amid the pandemic[21]. - The company recorded a foreign exchange loss of approximately RMB 15.7 million during the year, compared to a foreign exchange gain of RMB 6.4 million in the previous year[35]. - The company recorded a loss of approximately RMB 5.2 million for the year ended December 31, 2020, compared to a profit of approximately RMB 29.1 million for the year ended December 31, 2019[69]. Revenue Segments - The increase in revenue was primarily driven by the animal nutrition chemicals segment, which saw increased production capacity starting in the second half of 2020[17]. - The animal nutrition chemicals segment generated revenue of RMB 757.9 million, accounting for 36.0% of total revenue, up from 30.7% in 2019[38]. - Revenue from animal nutrition chemicals rose from approximately RMB 603.5 million for the year ended December 31, 2019, to approximately RMB 757.9 million for the year ended December 31, 2020, mainly due to increased sales of choline chloride and betaine[43]. - Revenue from polyurethane materials increased from approximately RMB 654.6 million for the year ended December 31, 2019, to approximately RMB 700.3 million for the year ended December 31, 2020, primarily due to increased average selling prices and sales volume of polymer MDI[39]. - The polyurethane materials segment maintained stable supply throughout the year, contributing to revenue growth despite challenges from the COVID-19 pandemic[17]. - Revenue from fine chemicals decreased from approximately RMB 257.0 million for the year ended December 31, 2019, to approximately RMB 212.6 million for the year ended December 31, 2020, primarily due to reduced demand caused by the COVID-19 pandemic[46]. - Revenue from pharmaceutical products and intermediates slightly decreased from approximately RMB 438.1 million to approximately RMB 423.3 million, mainly due to decreased sales of iodine and cefoperazone dispersible tablets[47]. Assets and Liabilities - Total assets increased to RMB 1,021.7 million in 2020 from RMB 855.2 million in 2019, while total liabilities rose to RMB 816.3 million from RMB 740.7 million[11]. - The net asset value of the company improved to RMB 205.5 million in 2020, up from RMB 114.6 million in 2019[11]. - Borrowings, including loans from related parties, increased to approximately RMB 562.9 million as of December 31, 2020, from RMB 501.5 million in 2019[73]. - The company's debt-to-equity ratio improved to 279.3% as of December 31, 2020, down from 437.8% in 2019[73]. Operational Strategies - The company is focused on expanding its production capabilities and enhancing its market presence in response to demand fluctuations[17]. - Future strategies may include further investments in technology and potential market expansion initiatives to mitigate risks associated with supply chain disruptions[17]. - The company plans to establish a new production facility in the Tai'an Daiyue Chemical Industrial Park to expand production of trimethylamine and pharmaceutical intermediates[34]. - The company aims to utilize market consolidation opportunities through the new production facility to capture market share from competitors[34]. - The company aims to become one of the largest suppliers of application chemical intermediates, particularly in the animal nutrition and feed additive sectors[24]. Research and Development - R&D expenses increased from approximately RMB 34.7 million for the year ended December 31, 2019, to approximately RMB 43.3 million for the year ended December 31, 2020, driven by costs related to technical improvements and new product development[62]. - The company has a strong emphasis on research and development, particularly in the pharmaceutical sector, as indicated by the involvement of independent directors with expertise in drug development[116][119]. Market Conditions - The company noted a decrease in sales revenue from third-party produced chemicals due to the impact of the pandemic[17]. - Despite a decline in sales volume in the first half of 2020 due to the pandemic, the sales volume of polymer MDI increased in the second half of 2020 due to economic recovery in China and supply disruptions from a major European producer[19]. - The polyurethane materials market faced challenges in 2020 due to the pandemic and falling oil prices, leading to temporary production halts among downstream customers[25]. - The ongoing impact of the COVID-19 pandemic on the group's overall business remains unclear, with management monitoring the situation closely[108]. Governance and Management - The company has established a risk management committee to oversee potential risks and ensure compliance with industry standards[112][115]. - The management team includes experienced professionals with backgrounds in finance, sales strategy, and risk management, enhancing the company's operational efficiency[115][119][120]. - The company emphasizes high-quality board governance and internal controls to ensure transparency and accountability to shareholders[198]. Shareholder Information - The company did not recommend any dividend payment for the year ended December 31, 2020, consistent with 2019[133]. - The group did not declare any final dividend for the year ended December 31, 2020, consistent with the previous year[99]. - As of December 31, 2020, the company's distributable reserves amounted to approximately RMB 79.5 million, compared to zero in 2019[136]. Risks and Challenges - The company faces significant risks including market risk, credit risk, and liquidity risk, which may affect its financial condition and operational performance[82]. - The group’s financial performance and position are influenced by various risks, including market risk, credit risk, and liquidity risk[129]. - The company does not currently have a foreign currency hedging policy but monitors foreign exchange risks and will consider hedging when necessary[83].