中国龙天集团(01863) - 2025 - 中期财报

Company Information Provides an overview of the company's board of directors, committees, and essential corporate details Board of Directors and Committees Details the composition of the Board of Directors, including executive and independent non-executive directors, and the structure and chairpersons of the Audit, Remuneration, and Nomination Committees - The Board of Directors comprises three executive directors (Mr. Liu Jun as Chairman, Mr. Jiang Shisheng, Mr. Gao Juwen) and three independent non-executive directors (Mr. Liu Zhenbang, Mr. Lu Jiayu, Ms. Jiang Ping)[3] - Mr. Liu Zhenbang chairs the Audit Committee, Mr. Lu Jiayu chairs the Remuneration Committee, and Ms. Jiang Ping chairs the Nomination Committee[3] Company Basic Information Presents key corporate details such as legal representatives, independent auditor, principal bankers, registered office, stock code, website, and investor contact - Mr. Zhou Yaohua is the Company Secretary, and Mr. Liu Jun and Mr. Zhou Yaohua are the legal representatives[3] - The independent auditor is Zhonghui Anda Certified Public Accountants Limited, and the principal banker is Bank of China (Hong Kong) Limited[3] - The company's stock code is 1863, and its website is http://www.chinalongevity.hk[4](index=4&type=chunk) Management Discussion and Analysis Reviews the group's business performance, financial results, liquidity, human resources, and future outlook, highlighting key operational and financial trends Business Review Reviews the group's position as a leader in eco-friendly special functional new materials, detailing revenue by product and region, and highlighting patent achievements - The group is one of the world's leading manufacturers of eco-friendly special functional new materials, with operations in over 100 countries and regions, focusing on low-carbon, emission reduction, and technological innovation[5] - As of June 30, 2025, the group held 150 patents for material products, including 67 invention patents, 78 utility model patents, and 5 software copyright patents[10] Revenue by Product Group revenue is primarily derived from material products, accounting for 93.34% of total revenue, with building materials products contributing 6.66% | Product Category | 2025 Revenue (RMB million) | 2025 % of Total Revenue | 2024 Revenue (RMB million) | 2024 % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Material Products | 552.20 | 93.34 | 482.02 | 90.58 | | Building Materials Products | 39.37 | 6.66 | 50.13 | 9.42 | | Total | 591.57 | 100.00 | 532.15 | 100.00 | Revenue by Geographical Region Domestic sales remain the group's primary revenue source, contributing approximately 65.4% of total revenue, while export sales account for about 34.6% | Region | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | China | 387.13 | 357.90 | | Other | 204.44 | 174.25 | | Total | 591.57 | 532.15 | - Domestic sales accounted for approximately 65.4% of total revenue (June 30, 2024: 67.3%), while export sales accounted for approximately 34.6% (June 30, 2024: 32.7%)[6] Material Products Material products revenue reached approximately RMB 552.2 million, representing about 93.3% of total group revenue, with sales increasing by approximately 14.6% due to higher demand - Material products revenue was approximately RMB 552.2 million (June 30, 2024: RMB 482.0 million), accounting for approximately 93.3% of total revenue (June 30, 2024: 90.6%)[11] - Sales of material products increased by approximately 14.6%, primarily due to increased demand[11] Building Materials Products Building materials products revenue was approximately RMB 39.4 million, accounting for about 6.7% of total revenue, with sales decreasing by approximately 21.5% - Building materials products revenue was approximately RMB 39.4 million (June 30, 2024: RMB 50.1 million), accounting for approximately 6.7% of total revenue (June 30, 2024: 9.4%)[12] - Sales of building materials products decreased by approximately 21.5%[12] Financial Review The group's revenue increased by 11.2% year-on-year, but profit for the period decreased by 14.6% due to increased administrative and finance costs, with no interim dividend proposed - Revenue was approximately RMB 591.6 million, an increase of 11.2% compared to the same period last year[13] - Gross margin was approximately 17.0% (June 30, 2024: 17.4%), with the decrease primarily attributed to the economic downturn in European and American countries and political instability in Sino-US trade relations leading to lower selling prices[14] - Profit attributable to owners of the company was approximately RMB 17.2 million, or basic earnings per share of RMB 2.02 cents, a decrease from RMB 20.2 million in the prior year, partly due to increased finance costs[22] - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025[23] Revenue The group's revenue for the six months ended June 30, 2025, was approximately RMB 591.6 million, an increase of 11.2% compared to the same period last year | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 591,574 | 532,153 | - Revenue increased by approximately RMB 59.4 million, or 11.2%[13] Gross Profit and Gross Margin Gross profit was approximately RMB 100.9 million, with a gross margin of about 17.0%, a slight decrease from 17.4% in the prior year, influenced by market downturns and trade relations | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Gross Profit | 100,853 | 92,735 | | Gross Margin | 17.0% | 17.4% | - The decrease in gross margin was mainly due to the economic downturn in European and American countries and political instability in Sino-US trade relations, leading to lower selling prices[14] | Product Category | 2025 (%) | 2024 (%) | | :--- | :--- | :--- | | Material Products | 17.6 | 17.4 | | Building Materials Products | 9.8 | 17.8 | | Total | 17.0 | 17.4 | Selling and Distribution Costs Selling and distribution costs increased by approximately RMB 0.3 million to RMB 23.4 million, while its proportion to revenue decreased from 4.4% to 4.0% - Selling and distribution costs increased by approximately RMB 0.3 million to approximately RMB 23.4 million[16] - The proportion to revenue decreased from 4.4% to 4.0%[16] Administrative Expenses Administrative expenses increased by approximately RMB 1.5 million or 2.6% to RMB 59.8 million, primarily due to higher staff costs - Administrative expenses increased by approximately RMB 1.5 million or 2.6% to approximately RMB 59.8 million[17] - The increase in administrative expenses was mainly due to increased staff costs[17] Research and Development Research and development costs were approximately RMB 26.5 million, representing 4.5% of revenue, with continued investment planned for long-term competitiveness and new material development - Research and development costs were approximately RMB 26.5 million (June 30, 2024: RMB 24.9 million), accounting for 4.5% of revenue (June 30, 2024: 4.7%)[18] - The group will continue to allocate resources to reduce raw material costs, optimize production processes, increase production capacity, and develop high-value-added new materials, expanding new application areas and customer markets for its products[18] Finance Costs Finance costs significantly increased to approximately RMB 9.2 million from RMB 4.4 million in the prior year, mainly due to new bank borrowings for operations - Finance costs were approximately RMB 9.2 million (June 30, 2024: RMB 4.4 million)[19] - The increase in finance costs was mainly due to the group obtaining new bank borrowings to facilitate operations[19] Other Income and Gains Other income and gains decreased to approximately RMB 11.1 million from RMB 17.6 million in the prior year, primarily due to a reduction in government subsidies - Other income and gains were approximately RMB 11.1 million (June 30, 2024: approximately RMB 17.6 million)[20] - The decrease during the period was mainly due to a reduction in government subsidies[20] Income Tax Income tax expense slightly increased to approximately RMB 5.3 million, mainly due to an increase in deferred income tax recognized in profit or loss for the current period - Income tax expense was approximately RMB 5.3 million (June 30, 2024: RMB 5.1 million)[21] - The slight increase in this expense was mainly due to an increase in deferred income tax recognized in profit or loss for the current period[21] Profit for the Period Profit attributable to owners of the company for the period was approximately RMB 17.2 million, with basic earnings per share of RMB 2.02 cents, a decrease from the prior year, partly due to higher finance costs | Metric | 2025 (RMB) | 2024 (RMB) | | :--- | :--- | :--- | | Profit attributable to owners of the company | 17,200,000 | 20,200,000 | | Basic Earnings Per Share | 2.02 cents | 2.36 cents | - The decrease in profit for the year was partly due to increased finance costs[22] Dividends The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 - The Board of Directors resolved not to declare any interim dividend for the six months ended June 30, 2025 (June 30, 2024: nil)[23] Liquidity and Financial Resources Total equity increased by 2.0% year-on-year, with an increase in net current assets and cash and cash equivalents, alongside new bank borrowings and pledged assets for financing - As of June 30, 2025, total equity was approximately RMB 844.1 million, an increase of 2.0% compared to approximately RMB 827.4 million as of December 31, 2024[24] - Net current assets were approximately RMB 267.0 million (December 31, 2024: net current assets of RMB 222.0 million)[25] - The net debt-to-equity ratio (calculated as total interest-bearing liabilities as a percentage of total assets) was 36.4%, compared to 35.1% as of December 31, 2024[25] - As of June 30, 2025, the group held cash and cash equivalents of approximately RMB 110.7 million (December 31, 2024: RMB 83.4 million)[26] Total Equity As of June 30, 2025, the group's total equity was approximately RMB 844.1 million, representing a 2.0% increase from December 31, 2024 - Total equity was approximately RMB 844.1 million, an increase of 2.0% compared to approximately RMB 827.4 million as of December 31, 2024[24] Financial Position The group reported total current assets of approximately RMB 767.3 million, total current liabilities of RMB 500.3 million, net current assets of RMB 267.0 million, and a net debt-to-equity ratio of 36.4% | Metric | 2025 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Total Current Assets | 767,300 | 780,900 | | Total Current Liabilities | 500,300 | 559,000 | | Net Current Assets | 267,000 | 222,000 | | Net Debt-to-Equity Ratio | 36.4% | 35.1% | Cash and Cash Equivalents As of June 30, 2025, the group held cash and cash equivalents of approximately RMB 110.7 million, an increase from RMB 83.4 million as of December 31, 2024 - Cash and cash equivalents were approximately RMB 110.7 million (December 31, 2024: RMB 83.4 million)[26] Bank Borrowings As of June 30, 2024, the group's interest-bearing bank borrowings were approximately RMB 704.8 million, with new bank loans of approximately RMB 111.5 million obtained during the year - Interest-bearing bank borrowings were approximately RMB 704.8 million (December 31, 2024: RMB 677.3 million)[27] - New bank loans of approximately RMB 111.5 million were obtained during the year[27] Contingent Liabilities As of June 30, 2025, the group had no significant contingent liabilities - As of June 30, 2025, the group had no significant contingent liabilities (December 31, 2024: nil)[28] Capital Commitments As of June 30, 2025, the group's capital commitments were approximately RMB 121.7 million, funded partly by internal resources and partly by bank borrowings - Capital commitments were approximately RMB 121.7 million (December 31, 2024: RMB 111.2 million)[29] - Capital commitments are partly funded by internal resources and partly by bank borrowings[29] Pledge of Assets Certain buildings, plant and machinery, construction in progress, leasehold land, investment properties, and bank deposits were pledged to banks as collateral for bank loans and general banking facilities - Buildings, plant and machinery, and construction in progress of approximately RMB 516.8 million, leasehold land of approximately RMB 77.1 million, investment properties of approximately RMB 20.3 million, and bank deposits of approximately RMB 44.3 million were pledged to banks[30] Events After Reporting Period No significant events occurred after the reporting period - No significant events occurred after the reporting period[31] Human Resources The group's total number of employees increased to 730, with a focus on enhancing employee quality, capabilities, and skills through training and competitive compensation - As of June 30, 2025, the group employed a total of 730 employees (December 31, 2024: 718 employees)[32] - The group provides on-the-job training for employees at all levels and continuously offers competitive compensation packages and bonuses to qualified employees based on their performance[32] Exchange Rate Fluctuation Risk and Related Hedging The group experienced exchange losses on some foreign trade orders due to RMB/USD exchange rate fluctuations but has no hedging agreements as most business transactions are settled in RMB - Due to factors such as RMB exchange rate reform and USD appreciation, the group incurred certain exchange losses on some foreign trade orders due to RMB/USD exchange rate fluctuations[33] - As the group primarily operates in mainland China, with most business transactions settled in RMB, the group has not entered into any agreements to hedge against foreign exchange risks[33] Significant Acquisitions or Disposals of Subsidiaries, Associates and Joint Ventures For the six months ended June 30, 2025, the group had no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - For the six months ended June 30, 2025, there were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures[34] Future Prospects The group plans to achieve sustainable development by focusing on technological innovation, market expansion, digital transformation, talent strategy, and intellectual property protection amidst global challenges - The group actively responds to national policies, establishing and adhering to the development strategy of "stable operation, green development, continuous innovation, and pursuit of excellence"[35] - The group will vigorously develop ecological building materials products, further expand its overseas markets, and accelerate its presence in the Chinese building materials market, promoting the "Sijia Super Core" brand[36] - The group aims to achieve phased goals of business operation digitalization, efficient horizontal/vertical business synergy, integrated business and finance, and "refined, profitable, and standardized" management[36] - The group will comprehensively implement seven major development strategies: talent, safety, green, R&D, digitalization, supply chain management, and corporate culture[36] - The group will establish an intelligent manufacturing technology research institute to promote the intelligent and automated transformation of production equipment across its subsidiaries and strengthen intellectual property protection for new technologies and processes[37] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income During the reporting period, group revenue increased by 11.2% to RMB 591.6 million, but profit attributable to owners of the company decreased by 14.6% to RMB 17.2 million, with basic earnings per share of RMB 2.02 cents, due to increased costs | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue | 591,574 | 532,153 | | Cost of sales | (490,721) | (439,418) | | Gross profit | 100,853 | 92,735 | | Other income and gains | 11,128 | 17,649 | | Selling and distribution costs | (23,437) | (23,160) | | Administrative expenses | (59,810) | (58,300) | | Profit from operations | 29,115 | 27,217 | | Finance costs | (9,228) | (4,367) | | Profit before tax | 19,415 | 22,850 | | Income tax expense | (5,264) | (5,059) | | Profit for the period | 14,151 | 17,791 | | Profit attributable to owners of the company | 17,211 | 20,153 | | Basic Earnings Per Share (RMB cents) | 2.02 | 2.36 | Condensed Consolidated Statement of Financial Position As of June 30, 2025, the group's total assets less current liabilities increased to RMB 1,445.3 million, with net current assets rising to RMB 267.0 million and total equity growing by 2.0% to RMB 844.1 million | Metric | 2025 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 1,178,335 | 1,159,555 | | Total Current Assets | 767,253 | 780,919 | | Total Current Liabilities | 500,260 | 559,016 | | Net Current Assets | 266,993 | 221,903 | | Total Assets Less Current Liabilities | 1,445,328 | 1,381,458 | | Total Non-current Liabilities | 601,190 | 554,025 | | Total Equity | 844,138 | 827,433 | Condensed Consolidated Statement of Changes in Equity For the six months ended June 30, 2025, the group's total equity increased from RMB 827.4 million at the beginning of the period to RMB 844.1 million, primarily driven by total comprehensive income and capital injection from a non-controlling shareholder | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Total Equity at Beginning of Period | 827,433 | 758,156 | | Total Comprehensive Income for the Period | 14,205 | 17,798 | | Capital Contribution from a Non-controlling Shareholder | 2,500 | – | | Total Equity at End of Period | 844,138 | 775,954 | Condensed Consolidated Statement of Cash Flows During the reporting period, net cash from operating activities significantly increased, net cash used in investing activities decreased, and net cash from financing activities declined, with cash and cash equivalents rising to RMB 110.7 million at period-end | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 59,110 | 40,953 | | Net Cash Used in Investing Activities | (52,254) | (89,977) | | Net Cash from Financing Activities | 20,439 | 38,758 | | Net Increase/(Decrease) in Cash and Cash Equivalents | 27,295 | (10,266) | | Cash and Cash Equivalents at End of Period | 110,730 | 54,110 | Notes to the Condensed Consolidated Financial Statements Provides detailed explanations and disclosures for the condensed consolidated financial statements, covering general information, accounting policies, revenue, expenses, and financial position items 1. General Information China Longevity Group Limited was incorporated in the Cayman Islands, with its shares suspended from trading since February 14, 2013, primarily engaged in designing, developing, producing, and selling material and building materials products, ultimately controlled by Mr. Lin Shenxiong - The company was incorporated as a limited company in the Cayman Islands on October 7, 2009[44] - The company's shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited and have been suspended from trading since February 14, 2013[44] - The company is principally engaged in the design, development, production, and sale of material products and building materials products[44] - Mr. Lin Shenxiong is the ultimate controlling party of the company[44] 2. Basis of Preparation The interim financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, generally accepted accounting principles, and disclosure requirements, and should be read in conjunction with the 2024 annual consolidated financial statements - The interim financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, Hong Kong Generally Accepted Accounting Principles, and the disclosure requirements of the Hong Kong Companies Ordinance and the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[45] - The accounting policies and methods of computation adopted in the preparation of the interim financial statements are consistent with those adopted in the 2024 annual report[45] 3. Adoption of New and Revised Hong Kong Financial Reporting Standards The group adopted all new and revised Hong Kong Financial Reporting Standards effective for the current period, with no significant changes to accounting policies, financial statement presentation, or reported amounts - During the current period, the group adopted all new and revised Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants that are relevant to its operations and effective for accounting periods beginning on January 1, 2025[46] - Except as described below, the adoption of these new and revised Hong Kong Financial Reporting Standards has not resulted in significant changes to the group's accounting policies, the presentation of the group's financial statements, or the amounts reported for the current and prior years[46] 4. Revenue Group revenue, primarily from goods sales, is recognized when control of products transfers, with credit terms typically ranging from 30 to 90 days, and is segmented by geographical market and major product categories - The group had only one operating segment during the year, primarily engaged in the design, development, production, and sale of material products and building materials products[47] - Sales are recognized when control of the products is transferred, and credit terms generally range from 30 to 90 days[47][48] Customer Contract Revenue Disaggregation (For the six months ended June 30) | Category | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Geographical Market | | | | China | 387,135 | 357,906 | | Other | 204,439 | 174,247 | | Total | 591,574 | 532,153 | | Major Products | | | | Material Products | 552,199 | 482,025 | | Building Materials Products | 39,375 | 50,128 | | Total | 591,574 | 532,153 | 5. Other Income and Gains Total other income and gains amounted to RMB 11.1 million, a decrease from the prior year, mainly attributed to reduced government grants Composition of Other Income and Gains (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest income | 379 | 384 | | Government grants | 2,419 | 9,962 | | Gain on lease termination | 16 | 55 | | Gross rental income | 2,150 | 2,173 | | Exchange gain, net | 897 | 2,317 | | Miscellaneous income | 5,267 | 2,758 | | Total | 11,128 | 17,649 | - The decrease during the period was mainly due to a reduction in government subsidies[51] 6. Finance Costs Total finance costs significantly increased to RMB 9.2 million from the prior year, primarily consisting of interest on bank borrowings Composition of Finance Costs (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Interest on leases | 62 | 95 | | Interest on bank borrowings | 9,157 | 10,131 | | Interest on other borrowings | 9 | 429 | | Total Borrowing Costs | 9,228 | 10,655 | | Less: Interest capitalized | – | (6,288) | | Total | 9,228 | 4,367 | 7. Profit Before Tax Profit before tax decreased to RMB 19.4 million from the prior year, primarily impacted by increased depreciation, amortization, and finance costs Items Affecting Profit Before Tax (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Directors' emoluments | 839 | 928 | | Depreciation of property, plant and equipment | 35,266 | 25,231 | | Depreciation of right-of-use assets | 3,579 | 1,804 | | Amortization of intangible assets | 2,193 | 64 | | Net loss on disposal of property, plant and equipment | 3 | 14 | 8. Income Tax Expense Income tax expense slightly increased to RMB 5.3 million, mainly due to higher current and deferred tax in China, with high-tech enterprises taxed at 15% Composition of Income Tax Expense (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax – China | 4,136 | 2,265 | | Under-provision in prior years | 952 | 2,715 | | Deferred tax | 176 | 79 | | Total | 5,264 | 5,059 | - No provision for Hong Kong profits tax has been made as there was no assessable profit in Hong Kong[55] - Fujian Sijia, Sijia Environmental Material Technology (Shanghai) Co., Ltd., and Fujian Sijia New Material Technology Co., Ltd. are high-tech enterprises subject to a tax rate of 15%; other subsidiaries are subject to a corporate income tax rate of 25%[56] 9. Dividends The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 - The directors do not recommend the payment of any interim dividend for the six months ended June 30, 2025 (for the six months ended June 30, 2024: nil)[57] 10. Earnings Per Share Attributable to Owners of the Company Basic earnings per share were RMB 2.02 cents, consistent with diluted earnings per share, as there were no potential dilutive ordinary shares during the period - Basic earnings per share attributable to owners of the company for the six months ended June 30, 2025, were RMB 2.02 cents, calculated based on the profit attributable to owners of the company of approximately RMB 17.211 million and the weighted average number of ordinary shares in issue during the year of approximately 852,612,470 shares[58] - As the company had no potential dilutive ordinary shares for the six months ended June 30, 2025, and 2024, the diluted earnings per share for these periods were consistent with the basic earnings per share[59] 11. Property, Plant and Equipment During the reporting period, the group acquired property, plant and equipment at a total cost of RMB 19.983 million and disposed of assets with a carrying amount of RMB 15 thousand, resulting in a loss on disposal of RMB 3 thousand - For the six months ended June 30, 2025, the total cost of property, plant and equipment acquired by the group was approximately RMB 19.983 million (for the six months ended June 30, 2024: RMB 87.416 million)[60] - The disposal of property, plant and equipment with a carrying amount of approximately RMB 15 thousand (for the six months ended June 30, 2024: RMB 14 thousand) resulted in a loss on disposal of approximately RMB 3 thousand (for the six months ended June 30, 2024: RMB 14 thousand)[60] 12. Trade and Bills Receivables Total trade and bills receivables amounted to RMB 359.9 million, with credit terms generally ranging from 30 to 90 days, and overdue balances are regularly reviewed by management - The group's transaction terms with customers are primarily based on credit and cash on delivery, with credit terms generally ranging from 30 to 90 days[61] Ageing Analysis of Trade Receivables (Net of Provision) (As of June 30) | Ageing | 2025 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 214,668 | 270,797 | | More than 3 months but within 6 months | 76,944 | 54,281 | | More than 6 months but within 1 year | 65,504 | 27,179 | | More than 1 year | 2,857 | 2,344 | | Total | 359,973 | 354,601 | 13. Prepayments, Deposits and Other Receivables Total prepayments, deposits, and other receivables decreased to RMB 38.8 million from the prior year-end, primarily comprising prepaid sales tax and government surcharges, advances to suppliers, and other receivables Prepayments, Deposits and Other Receivables (As of June 30) | Item | 2025 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Advances to suppliers | 7,508 | 9,742 | | Prepaid sales tax and government surcharges | 23,142 | 24,488 | | Prepaid expenses | 940 | 614 | | Other receivables | 7,259 | 18,578 | | Total | 38,849 | 53,422 | 14. Trade and Bills Payables Total trade and bills payables decreased to RMB 280.2 million from the prior year-end, with the majority of amounts due within three months Trade and Bills Payables (As of June 30) | Item | 2025 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 138,314 | 147,735 | | Bills payables | 141,852 | 155,878 | | Total | 280,166 | 303,613 | Ageing Analysis of Trade and Bills Payables (As of June 30) | Ageing | 2025 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Within 3 months | 181,142 | 211,095 | | More than 3 months but within 6 months | 85,979 | 81,308 | | More than 6 months but within 1 year | 10,460 | 6,271 | | More than 1 year | 2,585 | 4,939 | | Total | 280,166 | 303,613 | 15. Other Payables and Accruals Total other payables and accruals decreased to RMB 33.1 million from the prior year-end, mainly including accrued liabilities, wages payable, and payables for property, plant, and equipment acquisitions Other Payables and Accruals (As of June 30) | Item | 2025 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Accrued liabilities | 13,653 | 16,447 | | Wages payable | 3,510 | 3,576 | | Payables for acquisition of property, plant and equipment | 9,422 | 20,175 | | Other | 6,483 | 7,768 | | Total | 33,068 | 47,966 | 16. Interest-Bearing Borrowings During the reporting period, the group obtained new interest-bearing borrowings of RMB 111.5 million for additional working capital and repaid RMB 83.925 million of interest-bearing borrowings - The group obtained new interest-bearing borrowings of approximately RMB 111.5 million for additional working capital (for the six months ended June 30, 2024: RMB 124.2 million)[68] - Interest-bearing borrowings of approximately RMB 83.925 million were repaid (for the six months ended June 30, 2024: RMB 80.626 million)[68] 17. Capital Commitments As of June 30, 2025, the group's capital commitments were approximately RMB 121.7 million, primarily for property, plant and equipment, and capital injection into an associate Capital Commitments (As of June 30) | Item | 2025 (RMB thousand) | 2024 December 31 (RMB thousand) | | :--- | :--- | :--- | | Property, plant and equipment (contracted but not provided for) | 112,176 | 100,725 | | Capital injection into an associate | 9,526 | 10,507 | | Total | 121,702 | 111,232 | 18. Contingent Liabilities As of June 30, 2025, the group had no significant contingent liabilities - As of June 30, 2025, the group had no significant contingent liabilities (December 31, 2024: nil)[70] 19. Related Party Transactions The group engages in transactions with related parties, including receiving income from an associate, purchasing raw materials, and paying utility expenses, with the ultimate shareholder and family members guaranteeing approximately RMB 649.2 million in bank loans Related Party Transactions (For the six months ended June 30) | Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Income received from an associate | 13 | 8 | | Raw materials purchased from an associate | 19,533 | 11,894 | | Utility expenses paid to an associate | 1,555 | 427 | - The ultimate shareholder and a family member of the ultimate shareholder have guaranteed bank loans of approximately RMB 649.2 million (December 31, 2024: RMB 632.8 million) for the group[73] 20. Events After Reporting Period No significant events occurred after the reporting period - No significant events occurred after the reporting period[74] 21. Approval of Financial Statements The consolidated financial statements were approved and authorized for issue by the Board of Directors on August 28, 2025 - The consolidated financial statements were approved and authorized for issue by the Board of Directors on August 28, 2025[75] Other Information Presents additional disclosures including results and appropriations, compliance with regulations, directors' securities transactions, share dealings, contractual interests, and major shareholder information Results and Appropriations The group's results for the six months ended June 30, 2025, are presented in the condensed consolidated statement of profit or loss and other comprehensive income, with no interim dividend recommended by the Board - The Board of Directors does not recommend the payment of any interim dividend for the six months ended June 30, 2025 (2024: nil)[76] Compliance with Laws and Regulations The group is committed to complying with relevant laws and regulations, allocating resources to ensure continuous adherence to applicable rules, and maintaining good working relationships with regulatory bodies - The group has allocated financial and human resources to ensure continuous compliance with applicable rules and regulations and maintains good working relationships with regulatory authorities through effective communication[77] - During the review period, the group complied with the Listing Rules, the Securities and Futures Ordinance, the Companies Ordinance, the Patent Law of the People's Republic of China, the Contract Law of the People's Republic of China, the Labor Law, and other relevant rules and regulations[77] Compliance with the Model Code for Securities Transactions by Directors The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance with its required standards for the six months ended June 30, 2025 - The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers as the standard for directors' securities transactions[78] - All directors confirmed that they have complied with the required standards set out in the Model Code for the six months ended June 30, 2025[78] Purchase, Sale or Redemption of the Company's Listed Securities Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025 - Neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities during the six months ended June 30, 2025[79] Directors' Contractual Interests As of June 30, 2025, or at any time during the six months ended June 30, 2025, no significant contracts materially related to the company's business, in which a director had a material interest, were entered into by the company or its affiliates - No significant contracts materially related to the company's business, in which a director (whether directly or indirectly) had a material interest, were entered into by the company, its holding company, or any of its subsidiaries or fellow subsidiaries[80] Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company or any Associated Corporation Discloses the long positions held by directors and chief executives in the shares of the company and its associated corporations Long Positions in Shares of the Company Mr. Lin Shenxiong holds 48.19% of the company's issued share capital through a controlled corporation, while Mr. Huang Wanneng beneficially owns 0.59% | Name of Director | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding in the Company | | :--- | :--- | :--- | :--- | | Mr. Lin Shenxiong | Interest in controlled corporation | 410,886,000 | 48.19% | | Mr. Huang Wanneng | Beneficial owner | 5,060,000 | 0.59% | Long Positions in Shares of Associated Corporations Mr. Lin Shenxiong beneficially owns 100% equity interest in Haolin International Holdings Limited | Name of Director | Name of Associated Corporation | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding in Associated Corporation | | :--- | :--- | :--- | :--- | | Mr. Lin Shenxiong | Haolin International Holdings Limited | Beneficial owner | 1 | 100.00% | Share Option Scheme The company's share option scheme adopted on April 8, 2010, expired on April 7, 2020, with no new scheme launched and no outstanding share options as of June 30, 2025 - The company adopted a share option scheme on April 8, 2010, which expired on April 7, 2020, and no new scheme has been launched as of the date of this report[83] - As of June 30, 2025, no outstanding share options had been granted[83] Substantial Shareholders' Interests and Short Positions in Shares and Underlying Shares of the Company Discloses the long positions in the company's shares held by substantial shareholders, including Haolin International Holdings Limited, Mr. Lin Shenxiong, Ms. Lin Hongting, Rongliang Investment Enterprise Limited, Mr. Lin Wanpeng, and Ms. Wang Huiqing Substantial Shareholders' Long Positions in Shares of the Company (As of June 30) | Name of Shareholder | Capacity/Nature of Interest | Number of Shares Held | Approximate Percentage of Shareholding in the Company | | :--- | :--- | :--- | :--- | | Haolin International Holdings Limited | Beneficial owner | 410,886,000 | 48.19% | | Mr. Lin Shenxiong | Interest in controlled corporation | 410,886,000 | 48.19% | | Ms. Lin Hongting | Spouse's interest | 410,886,000 | 48.19% | | Rongliang Investment Enterprise Limited | Beneficial owner | 59,011,000 | 6.92% | | Mr. Lin Wanpeng | Interest in controlled corporation | 59,011,000 | 6.92% | | Ms. Wang Huiqing | Spouse's interest | 59,011,000 | 6.92% | Significant Acquisitions or Disposals For the six months ended June 30, 2025, there were no significant acquisitions or disposals of subsidiaries by the group - For the six months ended June 30, 2025, there were no significant acquisitions or disposals of subsidiaries by the group[88] Audit Committee The Audit Committee, comprising three independent non-executive directors, reviewed the group's accounting principles, internal controls, and financial reporting, and approved the unaudited condensed consolidated financial statements for the period - The Audit Committee, composed of three independent non-executive directors, has reviewed the accounting principles and practices adopted by the group with management and discussed matters related to audit, internal control, and financial reporting[89] - The Audit Committee has reviewed the group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and is of the opinion that the accounts comply with applicable accounting standards, the Listing Rules, and all legal requirements, and that adequate disclosures have been made[89] Suspension of Trading The company's shares have been suspended from trading on the Stock Exchange since February 14, 2013, and will remain suspended until further notice - The company's shares have been suspended from trading on the Stock Exchange since February 14, 2013, and will continue to be suspended until further notice[90]