環龍控股：年報2023

VANOVAR2023 Cover V04_Full_Spine 10mmStock Code股份代號: 2260(Incorporated in the Cayman Islands with limited liability)ANNUALREPORT年報2023（於開曼群島註冊成立的有限公司）VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司ANNUALREPORT年報2023CMYCMMYCYCMYK 1 12/4/2024 上午9:36CONTENTS目錄CORPORATEINFORMATION公司資料2CHAIRPERSON'SSTATEMENT主席報告5MANAGEMENTDISCUSSIONANDANALYSIS管理層討論及分析10CORPORATEGOVERNANCEREPORT企業管治報告19BIOGRAPHIESOFDIRECTORSANDSENIORMANAGEMENT董事及高級管理層履歷39DIRECTORS’ REPORT董事會報告45INDEPENDENTAUDITOR’SREPORT獨立核數師報告68CONSOLIDATEDSTATEMENTOFPROFITORLOSSAND OTHERCOMPREHENSIVEINCOME綜合損益及其他全面收益表75CONSOLIDATEDSTATEMENTOFFINANCIALPOSITION綜合財務狀況表76CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY綜合權益變動表78CONSOLIDATEDSTATEMENTOFCASHFLOWS綜合現金流量表79NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註81PROPERTIESOWNEDBYTHEGROUP本集團所擁有的物業166PROPERTYHELDFORINVESTMENT持作投資的物業167FIVE-YEARFINANCIALSUMMARY五年財務概要168CORPORATEINFORMATION公司資料VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司2董事會執行董事沈根蓮女士（主席）周駿先生（行政總裁）謝宗國先生袁傲梅女士獨立非執行董事葉耘開先生張慎金先生王運陳先生董事委員會審核委員會王運陳先生（主席）張慎金先生葉耘開先生薪酬委員會葉耘開先生（主席）周駿先生張慎金先生提名委員會沈根蓮女士（主席）葉耘開先生王運陳先生授權代表沈根蓮女士麥寶文女士公司秘書麥寶文女士BOARDOFDIRECTORSExecutive DirectorsMs. Shen Genlian (Chairperson)Mr. Zhou Jun (Chief executive officer)Mr. Xie ZongguoMs. Yuan AomeiIndependent Non-Executive DirectorsMr. Ip Wang HoiMr. Zhang ShenjinMr. Wang YunchenBOARDCOMMITTEESAudit CommitteeMr. Wang Yunchen (Chairman)Mr. Zhang ShenjinMr. Ip Wang HoiRemuneration CommitteeMr. Ip Wang Hoi (Chairman)Mr. Zhou JunMr. Zhang ShenjinNomination CommitteeMs. Shen Genlian (Chairperson)Mr. Ip Wang HoiMr. Wang YunchenAUTHORISEDREPRESENTATIVESMs. Shen GenlianMs. Mak Po Man CherieCOMPANYSECRETARYMs. Mak Po Man CherieCORPORATEINFORMATION公司資料3Annual Report 2023年報註冊辦事處Cricket SquareHutchins DrivePOBox 2681Grand Cayman, KY1-1111Cayman Islands總部中國四川省成都市溫江區海峽兩岸科技產業開發園新華大道二段519號香港主要營業地點香港灣仔皇后大道東248號大新金融中心40樓主要往來銀行興業銀行股份有限公司香港分行興業銀行股份有限公司成都分行興業銀行股份有限公司上海分行外高橋支行成都農村商業銀行股份有限公司溫江永盛分行華夏銀行股份有限公司成都分行核數師致同（香港）會計師事務所有限公司執業會計師註冊公眾利益實體核數師關於香港法律的法律顧問龍炳坤、楊永安律師行合規顧問民銀資本有限公司REGISTEREDOFFICECricket SquareHutchins DrivePOBox 2681Grand Cayman, KY1-1111Cayman IslandsHEADQUARTERNo.519, Section 2, Xinhua AvenueChengdu Strait Science and TechnologyIndustry Development ParkWenjiang District, ChengduSichuan Province, PRCPRINCIPALPLACEOFBUSINESSIN HONGKONG40th Floor, Dah Sing Financial Centre248 Queen’s Road East, WanchaiHong KongPRINCIPALBANKERSIndustrial Bank Co., Ltd. Hong Kong Branch Industrial Bank Co., Ltd. Chengdu BranchIndustrial Bank Co., Ltd. Shanghai Branch Waigaoqiao Sub-BranchChengdu Rural Commercial Bank Co., Ltd. Wenjiang Yongsheng BranchHua Xia Bank Co., Ltd. Chengdu BranchAUDITORGrant Thornton Hong Kong LimitedCertified Public Accountants Registered Public Interest Entity AuditorLEGALADVISERASTOHONGKONGLAWSLoong & YeungCOMPLIANCEADVISERCMBCInternational Capital LimitedCORPORATEINFORMATION公司資料VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司4主要股份過戶登記處Conyers Trust Company (Cayman) LimitedCricket SquareHutchins DrivePOBox 2681Grand CaymanKY1-1111Cayman Islands香港股份過戶登記分處香港中央證券登記有限公司香港灣仔皇后大道東183號合和中心17樓1712–1716號舖股份代號2260網站PRINCIPALSHAREREGISTRARAND TRANSFEROFFICEConyers Trust Company (Cayman) LimitedCricket SquareHutchins DrivePOBox 2681Grand CaymanKY1-1111Cayman IslandsHONGKONGBRANCHSHAREREGISTRAR ANDTRANSFEROFFICEComputershare Hong Kong Investor Services LimitedShops 1712–1716,17th Floor, Hopewell Centre183 Queen’s Road EastWanchaiHong KongSTOCKCODE2260WEBSITECHAIRPERSON'SSTATEMENT主席報告5Annual Report 2023年報Dear Shareholders,Under the 14th Five-Year Plan of the PRC, significant effort was put into transforming and improving traditional industries, optimizing industrial layouts and structural adjustments, increasing supply of quali ty products from l ight and text i le industry, accelerating the transformation and improvement process of companies in key industries like chemical and papermaking and refining the green manufacturing system. In 2023, facing complex and changing international landscape and global economic slowdown, China’s economy achieved sustained growth despite the various headwinds. According to the data from the National Bureau of Statistics of China, China’s gross domestic product (GDP) grew by 5.2% year-on-year to RMB126 trillion in 2023, reaching a new level exceeding RMB121 trillion in 2022, with top growth rate among major economies in the world.During the reporting period, the production volume of paper and paperboard amounted to 144.055 million tonnes, representing a year-on-year increase of 6.6%. In 2023, under the continuously improving industry situation, the Group strengthened its corporate core, insisted on technological innovation as the lifeline of corporate survival and development, and achieved growth in both revenue and net prof it. In 2023, revenue amounted to approximately RMB237.37 million, representing a year-on-year inc rease of 9.0%; net prof i t amounted to approx imate ly RMB53.683 million, representing a year-on-year increase of 1.3%.C o n t i nu o us te c hn o l o g i c a l i nn ova t i o n i s t h e key t o development. The Group has always prioritized technological innovation while improving its R&D and core technological capabilities. Currently, the Group owns 97 inventions, utility models and design patents. Sichuan Huanlong Technology Fabric Co., Ltd.* (四川環龍技術織物有限公司) and Shanghai Jinxiong Paper Making Net Carpet Co., Ltd.* (上海金熊造紙網毯有限公司), both subsidiaries of the Group, are recognized as national High and New Tech Enterprise. Sichuan Huanlong Technology Fabric Co., Ltd. was recognized as a Sichuan Specialized and New Enterprise, Sichuan Service-oriented Manufacturing Enterprise and Sichuan Green Factory and awarded the “Contribution Award for Product Development” by China National Textile and Apparel Council. Shanghai Jinxiong Paper Making Net Carpet Co., Ltd, a subsidiary of the Company and a sci-tech SME, was recognized as a Shanghai Specialized and New Enterprise and awarded the “Top 100 Shanghai Hi-tech Achievement Transfer Project Award”. The Group insists on actively exploring the road of green development. The Group completed the carbon footprint evaluation of papermaking felts and obtained carbon footprint certif ication during the reporting period, and was recognized as one of the “Top 10 Green and Low-Carbon Transformation Enterprise of Chengdu” and a National “Green Factory”.* for identification purposes only敬致各位股東：中國「十四五」規劃，大力改造提升傳統產業，推動產業佈局優化和結構調整，擴大輕工、紡織等優質產品供給，加快化工、造紙等重點行業企業改造升級，完善綠色製造體系。

2023年，面對複雜多變的國際局勢，世界經濟增長放緩。

中國經濟頂住多重壓力實現持續增長，據中國國家統計局發佈數據顯示，2023年全年，國內生產總值(GDP)達126萬億元人民幣，同比增長5.2%，繼2022年突破121萬億元人民幣之後，再次躍上新台階，增速居世界主要經濟體前列。

報告期內，中國紙及紙板產量達14,405.5萬噸，同比增長6.6%；2023年在持續向好的行業局勢下，集團增強企業內核，堅持以技術創新作為企業生存發展的生命線，實現收益、淨利潤的雙增長。

2023年，實現收益約為人民幣23,737.0萬元，同比增長9.0%；實現淨利潤5,368.3萬元，同比增長1.3%。

技術的持續創新是發展的關鍵，集團始終堅持將技術創新置於優先位置，持續提升研發及核心技術能力。

截至目前，集團發明、實用新型及外觀專利持有數量達97項。

集團旗下附屬公司四川環龍技術織物有限公司、上海金熊造紙網毯有限公司均為國家級高新技術企業；四川環龍技術織物有限公司榮獲四川省專精特新企業、四川省服務型製造示範企業、四川省綠色工廠，榮獲中國紡織工業聯合會產品開發貢獻獎；集團旗下附屬公司上海金熊造紙網毯有限公司（科技型中小企業）榮獲上海市專精特新企業、上海市高新技術成果轉化項目「百佳」獎。

集團堅持不斷積極探索綠色發展之路，本集團在報告期內完成了造紙毛毯碳足跡核算並取得碳足跡認證，順利榮獲成都市「十佳」綠色低碳轉型企業，獲評國家級「綠色工廠」稱號。

CHAIRPERSON'SSTATEMENT主席報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司6本集團自主開發的造紙機運營效率優化服務數字平台系統，實現了技術成果的可視化和服務價值的顯性化，給本集團帶來了競爭力優勢和產品附加值，同時也提高了客戶的黏性，對本集團造紙毛毯的產品設計、優化方案提供數據支撐，實現產品質量的持續提升，為集團持續增長、穩定的客戶資源提供了強有力的保障。

2023年，本集團投資於上海金熊生產基地的PM3數字化、智能化製造生產線，所有設備已全部到位，部分設備報告期內已安裝完成，生產線將於2024年建成並投產。

該項目運用先進技術手段，結合公司沉澱多年的專業技術，將實現傳統製造業向智能製造、清潔製造、綠色製造轉型，是本集團也是截至目前國內首條全球幅寬最寬的造紙毛毯先進生產線。

公司同步配套啟動了生產數字化項目，基於公司自主開發的造紙機運營效率優化服務數字平台系統，融合公司多年研發成果及經驗，承載了中國造紙毛毯行業重大革新使命，將大幅提升我國造紙行業工藝技術水平，引領中國造紙毛毯行業未來發展。

集團的發展之路離不開各界人士的大力支持，集團在發展的過程中不忘持份者對本集團的信任及支持。

2023年，本集團不斷探索和強化ESG管理工作，以此推動可持續發展之路，完善環境、社會及管治和內控體系，豐富人才管理機制，加大公益投入力度等。

為回報公司股東，本年度已完成派息1933.8萬港元。

為持續回報公司股東，本集團計劃2024年將繼續向股東分派股息。

The Group’s self-developed Paper Machine Ef f ic iency Operation System (造紙機運營效率優化服務數字平台系統) visualized its technical achievements and service value, providing the Group with competitive edges and added value to products, while also enhancing customers’ loyalty. The system provides data support for the product design and optimization solutions for papermaking felts, achieving continuous improvement for product quality and providing strong foundation for the sustained growth of the Group and stable customer sources.In 2023, the Group invested in the PM3 digital and intelligent production line in Shanghai Jinxiong production site. All equipment was in place and certain of which has been installed during the reporting period. The production line will be completed and commence production by 2024. The project will transform the traditional manufacturing industry into intelligent, clean and green manufacturing by applying advanced technology and the Company's years of expertise. The Group is the first enterprise in the PRC which owns an advanced production line for the widest papermaking felt around the world. The Company has simultaneously launched a production digitization project based on the Company's self-developed Paper Machine Ef f iciency Operat ion System, integrat ing the Company's many years of research and development results and experience, and undertaking the major mission of revolutionizing the papermaking felt industry of the PRC, which will significantly enhance the level of craftsmanship and technology of the paper industry of the PRC and lead the future development of China's papermaking felt industry.The development of the Group would not be possible without the support of the public. In the course of the Group's development, the Group is thankful for the trust and support of its stakeholders. In 2023, the Group further explored and improved its ESG management to facilitate sustainable development, optimize its ESG and internal control system, enrich its talent management system and increase its investment in charity. To repay the shareholders of the Company, dividends of RMB19.338 million was distributed during the year. In order to bring further returns to the shareholders of the Company, the Group plans to distribute additional dividends in 2024.CHAIRPERSON'SSTATEMENT主席報告7Annual Report 2023年報業務前景造紙產業以木材、竹等原生植物纖維和廢紙等再生纖維為原料，可部分替代塑料、有色金屬等不可再生資源，是我國國民經濟中具有綠色、可持續發展特點的重要產業。

根據中國造紙工業「九五」計劃「十四五」規劃政策性方向來看，對造紙行業的政策支持，從「結構調整」到「可持續發展」再到「綠色製造」的變化。

《「十四五」規劃和2035遠景目標綱要》，提出要改造提升傳統產業，推動產業佈局優化和結構調整，擴大輕工、紡織等優質產品供給，加快化工、造紙等重點行業企業改造升級，完善綠色製造體系。

紙板廣泛應用於包裝和運輸行業，隨著電子商務的快速發展，對包裝需求的增加將持續推動紙板生產的增長，同時隨著消費者對可持續發展和環保要求的提升，將進一步推動紙板替代其他材料的趨勢，為紙板生產提供更廣闊的發展空間。

根據《造紙行業「十四五」中長期高質量發展綱要》，中國造紙行業2025將實現紙及紙板總產量達到1.4億噸，隨著全球經濟活動的恢復，紙及紙板市場的需求也不斷增加，市場行情及行業發展前景持續向好。

BUSINESSPROSPECTSThe paper industry uses plant fibers from wood and native plants like bamboo and recycled fibers like waste paper as raw materials, which can partially replace non-renewable resources, such as plastics and non-ferrous metals. It is an important industry in China's national economy with the characteristics of green and sustainable development.According to the 9th Five-Year Plan of the PRC paper industry and the policy direction of the 14th Five-Year Plan, policy support for the paper industry has changed from structural adjustment to sustainable development and then to green manufacturing. The Outline of the 14th Five-Year Plan and the Long-Range Objectives Through 2035 proposes plans for transforming and improving traditional industries, optimizing industrial layouts and structural adjustments, increasing supply of quality products from light and textile industry, accelerating the transformation and improvement process of companies in key industr ies l ike chemical and papermaking and refining the green manufacturing systemPaperboard is widely used in the packaging and transport industry. With the rapid development of e-commerce, the increase in demand for packaging will continue to promote the growth of paper board production. Meanwhile, as the consumer demand for sustainable development and environmental protection increases, the trend of replacing other materials with paper board will grow even stronger, providing wider development room for paper board manufacturing.Pursuant to the 14th Five-Year Plan Medium and Long-term High Quality Development Outline for the Paper Industry, in 2025, the total production volume of paper and paper board shall reach 140 million tonnes. With the recovery of global economic activities, the market demand for paper and paper board is also increasing, leading to favorable market sentiment and industry development prospects.CHAIRPERSON'SSTATEMENT主席報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司8QYResearch最新調研報告顯示，預計2029年全球紙和紙板包裝市場規模將達到1,938.01億美元，未來幾年複合增長率為3.75%。

目前，全球核心紙和紙板包裝生廠商主要分佈在美國、欧洲和中國等；東南亞地區新增產能快速增加，但低於世界平均水平，遠遠落後於歐美等發達地區，仍有巨大的發展空間；歐美地區產線升級改造，釋放存量市場需求。

造紙與包裝行業2010–2020年為產品結構調整階段，全球對原漿的需求大幅增加，產能也相應提升。

2020–2030年進入可持續和數字化階段，數字化轉型帶來巨大發展潛力。

發展規劃展望未來，公司依然對造紙行業及造紙毛毯細分領域充滿信心，集團將堅持「國際化」、「精品化」、「數字化及系統化」戰略，致力於成為國際一流的造紙毛毯供應商，以科技、技術創新作為核心動力，實現本集團的高速增長發展規劃。

本集團將持續提升造紙機運營效率優化服務數字平台系統，以數字化、智能化賦能綠色發展之路，持續貫徹落實《「十四五」工業綠色發展規劃》《工業領域碳達峰實施方案》。

持續加強ESG管理，以企業發展、踐行企業責任，積極推動企業的綠色製造，快速實現技術及產品持續升級，以「精品」拓展市場，以「數字化」提升產品增值服務能力，以「國際化」標準建體系，實現品牌創效益，推動本集團的持續、高質量發展，助力行業綠色可持續發展之路。

According to the latest research repor t prepared by QYResearch, the global scale of the paper and paper board packaging market is expected to reach US$193.801 billion by 2029, representing a CAGR of 3.75% over the next few years. At present, main global paper and paper board packaging manufacturers are mainly located in the United States, Europe and China; while new production capacity in Southeast Asia is growing rapidly, it is still below the world’s average and far behind that of Europe, the United States and other developed regions, with huge room for development. Production lines in Europe and the United States are undergoing upgrades and renovations, increasing demands from existing markets. Paper and packaging industry was in product structure adjustment stage from 2010 to 2020, leading to a significant increase in demand for virgin pulp and a corresponding increase in production capacity. The industry enters the phase of sustainability and digitalization from 2020 to 2030, with digital transformation showing huge development potential.DEVELOPMENTPLANLooking forward, the Company remains optimistic about the paper industry and the papermaking felts subsector. The Group will adhere to the strategy of “internationalization”, “refinement” and “digitalization and systematization”, str iving to become the world's leading supplier of papermaking felts that utilizes technology and technological innovations as its core drive to implement the rapid development plan of the Group.The Group will further improve the Paper Machine Efficiency Operation System, empowering its green development effor t with digitization and smart technology and further implement the 14th Five-Year Plan Industrial Green Development Plan and the Implementation Plan for Carbon Emission Peak in the Industr ial Sector. We wil l fur ther strengthen our ESG management to achieve corporate development, fulf i l l our corporate responsibilities, aggressively promote corporate green manufacturing and expedite technology and product upgrade. We will expand our market with quality, improve value-added product services with digitalization and establish standardized system with internationalization, in order to create brand value, promote the sustainable and high-quality development of the Group and facilitate the process towards green sustainable development of the industry.CHAIRPERSON'SSTATEMENT主席報告9Annual Report 2023年報2024年，本集團將在上海建成一條造紙毛毯行業全球領先水平的數字化、智能化製造生產線，該產線主要用作生產高速造紙機使用的造紙毛毯，是與集團造紙機運營效率優化服務數字平台系統形成協同效應，將極大提升本集團產品品質和服務能力，為造紙行業在節能減排、提質增效、數字化轉型、智能製造等方面貢獻力量，本集團致力於將其打造成為具有全球領先技術水平的造紙網毯標桿生產基地。

本集團為實現國際化、持續性的高速增長，拓展全球市場，推動環龍品牌國際化和影響力，會選擇性地尋求策略性收購，以補充業務能力及策略重點。

致謝本集團衷心感謝全體員工、投資者、客戶、供應商、各級政府、銀行、業務夥伴等持份者對環龍控股的信任及支持。

未來，相信集團將不負社會各界的信任，持續提升本集團的經營業績，持續探索造紙毛毯行業綠色產業發展之路，以技術創新引領造紙毛毯行業發展，肩負的社會責任，為公司股東及利益相關方持續創造價值，實現企業可持續發展。

沈根蓮主席香港，2024年3月28日In 2024, the Group wi l l complete a digi tal and smar t production line in Shanghai that is among the best within the global papermaking felt industry. This production line will be mainly producing papermaking felts for high-speed papermaking felts, and will form synergies with the Paper Machine Efficiency Operation System of the Group to greatly improve product quality and services of the Group and contribute to the efforts on energy saving, emission reduction, quality and efficiency enhancement, digital transformation and smart manufacturing within the paper industry. The Group is committed to develop the production line into a leading production base for papermaking mesh with world class technology.To achieve internationalization, sustainable rapid growth, expansion into global market, promote the internationalization of the Vanov brand and enhance its influence, the Group will selectively seek strategic acquisitions to supplement its business capabilities and strategic focuses.APPRECIATIONThe Group would like to express its sincere gratitude to all staff, investors, customers, suppliers, government at all levels, banks, business partners and other stakeholders for their trust and support towards Vanov Holdings. In the future, it is believed the Group will live up to the trust of the community and continuously improve the Group’s operating results, explore the road towards green industrial development in the papermaking felt industry, guide the development of papermaking felt industry through technological innovation and shoulder social responsibilities, in order to create value for shareholders of the Company and stakeholders and achieve sustainable corporate development.Shen GenlianChairpersonHong Kong,28 March 2024MANAGEMENTDISCUSSIONANDANALYSIS管理層討論及分析VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司10業務回顧本集團始終將技術創新作為企業生存發展的生命線，本集團目前擁有成都溫江、上海金熊兩大產業基地，擁有及兩大造紙毛毯知名品牌，並始終將科技創新作為本集團可持續發展的核心動力。

本集團旗下附屬公司擁有中國國家級高新技術企業、省級企業技術中心、省級專精特新企業等稱號。

截至目前，本集團發明、實用新型及外觀專利持有數量達97項。

報告期內，本集團研發的造紙機運營效率優化服務數字平台系統，實現了造紙毛毯的售前、售中和售後的全流程服務。

本集團對客戶的需求進行快速響應，並轉化為專業技術服務、數據化的解決方案，一方面實現對紙機效率運營數據的跟蹤、完善以及制定解決方案；另一方面為客戶提供最佳的紙機運行狀態以及參數建議；並為客戶提供紙機整體提效方案以及培訓課程；同時對本集團造紙毛毯的產品設計、優化方案提供數據支撐，實現產品質量的持續提升，為本集團的持續增長、穩定的客戶資源提供強力保障。

2023年，本集團下屬公司四川環龍技術織物有限公司、上海金熊造紙網毯有限公司啟動了碳足跡的認證工作，該項目亦是為本集團綠色製造的目標服務，也為本集團綠色、可持續發展奠定基礎。

本集團在報告期內完成了造紙毛毯碳足跡核算並取得碳足跡認證；榮獲成都市「十佳」綠色低碳轉型企業；獲評國家級「綠色工廠」稱號。

BUSINESSREVIEWThe Group has always seen technological innovation as the lifeline of corporate survival and development. The Group currently has two production sites, namely Chengdu Wenjiang and Shanghai Jinxiong, as well as two renowned papermaking felt brands of and . Technology innovation has always been the core motivation of the Group’s sustainability. The subsidiaries of the Group are recognized as national High and New Tech Enterprise, provincial corporate technical center and provincial “specialized and new” enterprise. As of today, the Group owns 97 invention, utility model and design patents.D u r i n g t h e r e p o r t i n g p e r i o d , u t i l i z i n g t h e G r o u p ’s self-developed Paper Machine Efficiency Operation System, the Group could provide comprehensive papermaking felt pre-sales, sales and after-sales services. The Group promptly reacts to customers’ need and provides them with solutions based on professional technological and digital services. The system not only optimizes the tracking of paper machine eff iciency and provision of resolutions, it also provides the best operating condit ion of the machines and parameter suggest ions to customers. The system provides overall efficiency enhancement and training sessions for customers while provides supporting data for the Group’s product design and solution enhancement in order to achieve continuous improvement on product quality, which firmly ensures the sustained growth of the Group and stable customer resources.In 2023, Sichuan Huanlong Technology Fabric Co., Ltd.* (四川環龍技術織物有限公司) and Shanghai Jinxiong Paper Making Net Carpet Co., Ltd.* (上海金熊造紙網毯有限公司), both subsidiaries of the Group, began the evaluation of carbon footprint. This project serves the Group’s goal of green manufacturing and lays the foundation for green and sustainable development of the Group. The Group completed the carbon footprint evaluation for papermaking felts and obtained carbon footprint certif ication. The Group was recognized as one of the “Top 10 Green and Low-Carbon Transformation Enterpr ise of Chengdu” and a National “Green Factory”.* for identification purposes onlyMANAGEMENTDISCUSSIONANDANALYSIS管理層討論及分析11Annual Report 2023年報During the reporting period, the PM3 production line project of the Shanghai Jinxiong production site of the Group is progressing as scheduled. The project plans to establish a PRC production site which possesses the most advanced papermaking net carpet technology in the world. As of today, the Group is the first enterprise in the PRC which owns an advanced production line for the widest papermaking felt around the world. The launch of the PM3 project not only bridges the gap in the PRC market, it also highly boosts the quality and stability of the products through its advanced production craftsmanship, technologies and reliable equipment. The Group contributes significant value to the papermaking industry by ways of craftsmanship enhancement, technology innovation and product upgrade.FUTUREPLANSThe struggle does not end here. Historical per formance guides our future path.In order to boost the business development of the Group and facilitate the international development plan of Vanov, the Group will continue to implement the measures as set out in the Prospectus (as defined below) to develop the Company. The directors of the Company (the “Directors”) intend to implement the following measures funded by the Group’s internal resources:(I) the Group has executed the production capacity expansion plan in three phases from 2021 to 2024 in order to satisfy the expected increasing demand in its high-speed papermaking felts. Such additional production capacity is mainly intended for manufacturing the papermaking felts used for paper machines of higher speed; the PM3 production l ine in Shanghai Jinxiong production site is expected to launch in the first half of 2024, which will further expand our capacity.(II) the Group will continue to upgrade the Paper Machine Efficiency Operation System to facilitate the collection of information from customers’ papermaking machines and production machinery and equipment, support the analysis of the data collected from the machines, build database and promote customized product services based on its analysis of the data. In 2024, the Group will continue to develop its production machinery and equipment based on the information collected using the online platform and allocate more resources to strengthen the Group’s information technology facilities.報告期內，本集團位於上海金熊生產基地的PM3項目產線如期推進，該項目計劃在中國打造具有全球領先技術水平的造紙網毯標桿生產基地，本集團也是截至目前國內首家擁有全球幅寬最寬的造紙毛毯先進生產線的企業。

PM3項目的推出不僅填補國內市場空白，同時通過對先進製造工藝、技術和可靠先進設備的應用，將大幅度提升產品質量和穩定性，為提升我國造紙行業工藝技術水平，造紙技術革新及產品升級貢獻重要價值。

未來計劃奮鬥不止於此，歷史的成績引領未來的方向。

為持續推動本集團業務增長，推進國際化環龍發展規劃，集團將繼續履行在招股章程（定義見下文）承諾的措施去發展企業，本公司董事（「董事」）擬動用本集團內部資源實行以下措施：(I) 2021年至2024年分三個階段的推進產能擴大計劃，以滿足對高速造紙毛毯的預期上升需求；該等額外產能主要作生產供高速造紙機使用的造紙毛毯；位於上海金熊生產基地的PM3項目產線預計將在2024年上半年投產，繼而實現產能擴大計劃。

(II)本集團將持續升級造紙機運營效率優化服務數字平台系統，以促進從客戶造紙機以及生產機器及設備中收集資料，支援對從造紙機所取得數據的分析、建立數據庫並基於對數據的分析提升定製產品服務；2024年，本集團將繼續基於使用在線平台收集的資料開發其生產機器及設備，並分配更多資源加強本集團的信息科技設施。

MANAGEMENTDISCUSSIONANDANALYSIS管理層討論及分析VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司12(III) to achieve future growth of the Group, the Group may selectively pursue strategic acquisitions that complement its business and strategic priorities, such as for expanding the business horizontally in the industry chain and supply chain.FINANCIALREVIEWRevenueThe Group principally engages in the design, manufacture and sales of papermaking felts under the brands of and . The revenue for the year ended 31 December 2023 was approximately RMB237.4 million, representing an increase of 9.0% as compared to approximately RMB217.8 million for the year ended 31 December 2022, which was mainly attributable to the increase in product sales and unit sales price.Gross Profit and Gross Profit MarginThe Group’s gross profit for the year ended 31 December 2023 was approximately RMB126.5 million, representing an increase of approximately RMB9.7 million from approximately RMB116.8 million for the year ended 31 December 2022. Its gross profit margin decreased from approximately 53.6% for the year ended 31 December 2022 to approximately 53.3% for the year ended 31 December 2023, which was mainly attributable to the increase in cost of raw material.Other IncomeOther income for the Group decreased by approximately RMB6.6 million from approximately RMB20.1 million for the year ended 31 December 2022 to approximately RMB13.5 million for the year ended 31 December 2023, which was mainly attributable to the decrease in exchange gain.Selling and Distribution ExpenseFor the year ended 31 December 2023, se l l ing and distribution expenses of the Group was approximately RMB22.4 mill ion, as compared to approximately RMB21.6 mill ion for the year ended 31 December 2022. Selling and distribution expenses for the year ended 31 December 2023 accounted for approximately 9.4% of its revenue, representing an increase of approximately RMB0.8 million from the year ended 31 December 2022, which was mainly attributable to the increase in travel and entertainment fees in connection with sales.(III)為實現本集團未來高速增長目標，本集團會選擇性地尋求策略性收購，以補充其業務及策略重點，例如在產業鏈及供應鏈中縱向拓展業務。

財務回顧收益本集團主要以及品牌從事造紙毛毯的設計、製造及銷售。

本集團截至2023年12月31日止年度的收益約為人民幣237.4百萬元，較截至2022年12月31日止年度的約人民幣217.8百萬元增加9.0%，主要原因為產品銷售量及銷售單價上漲所致。

毛利及毛利率截至2023年12月31日止年度，本集團毛利約為人民幣126.5百萬元，較截至2022年12月31日止年度的約人民幣116.8百萬元增加約人民幣9.7百萬元。

毛利率則由截至2022年12月31日止年度約53.6%減少至截至2023年12月31日止年度約53.3%，主要原因為原材料成本增加所致。

其他收入本集團截至2023年12月31日止年度的其他收入約為人民幣13.5百萬元，較截至2022年12月31日止年度約人民幣20.1百萬元減少約人民幣6.6百萬元，主要原因為匯兌收益減少所致。

銷售及分銷開支本集團截至2023年12月31日止年度的銷售及分銷開支約為人民幣22.4百萬元，而截至2022年12月31日止年度則約為人民幣21.6百萬元。

截至2023年12月31日止年度的銷售及分銷開支佔收益約9.4%，較截至2022年12月31日止年度增加約人民幣0.8百萬元。

主要原因為與銷售相關的差旅及招待費增加所致。

MANAGEMENTDISCUSSIONANDANALYSIS管理層討論及分析13Annual Report 2023年報Administrative and Other Operating ExpensesFor the year ended 31 December 2023, administrat ive and other operating expenses of the Group was approximately RMB42.3 million, as compared to approximately RMB40.3 million for the year ended 31 December 2022. Such increase was mainly due to the increase in depreciation and staff cost.Finance CostFor the year ended 31 December 2023, total finance cost of the Group reached approximately RMB11.7 million, representing an increase of approximately RMB1.2 million as compared to approximately RMB10.5 million for the year ended 31 December 2022. The main reason for such increase was the increase in loan interest derived from bank borrowings.Income Tax ExpenseIncome tax expense of the Group for the year ended 31 December 2023 reached approximately RMB9.7 mill ion, representing a decrease of approximately RMB1.7 million from approximately RMB11.4 million for the year ended 31 December 2022. Such decrease was mainly due to the decrease in the amount of PRC dividend withholding tax.Effective tax rate (income tax expense divided by profit before income tax for the current year) for the year ended 31 December 2023 was approximately 15.3%, as compared to 17.8% for the year ended 31 December 2022. Such decrease was mainly attributable to the increase in research and development expense and decrease in PRC dividend withholding tax.Turnover Days of Inventories and Trade PayablesTurnover days of inventories of the Group for the year ended 31 December 2023 were 60.0 days, as compared to 52.9 days for the year ended 31 December 2022.Turnover days for trade payables of the Group for the year ended 31 December 2023 were 77.0 days, as compared to 82.8 days for the year ended 31 December 2022.行政及其他經營開支本集團截至2023年12月31日止年度的行政及其他經營開支約為人民幣42.3百萬元，而截至2022年12月31日止年度則約為人民幣40.3百萬元。

其增加的主要原因為折舊及員工成本增加所致。

財務成本截至2023年12月31日止年度，本集團的總財務成本約為人民幣11.7百萬元，與截至2022年12月31日止年度約人民幣10.5百萬元相比增加約人民幣1.2百萬元。

其增加的主要原因為銀行借款產生的貸款利息增加所致。

所得稅開支本集團截至2023年12月31日止年度的所得稅開支約為人民幣9.7百萬元，較截至2022年12月31日止年度約人民幣11.4百萬元減少約人民幣1.7百萬元，其減少的主要原因為中國股息預扣稅下降所致。

截至2023年12月31日止年度的實際稅率（所得稅開支除以本年度除所得稅前溢利）約為15.3%，而截至2022年12月31日止年度則為17.8%，其減少的主要原因為就研發開支額外扣減增加及中國股息預扣稅下降所致。

存貨及貿易應付款項週轉期本集團截至2023年12月31日止年度的存貨週轉期為60.0天，而於截至2022年12月31日止年度則為52.9天。

本集團截至2023年12月31日止年度的貿易應付款項週轉期為77.0天，而截至2022年12月31日止年度則為82.8天。

MANAGEMENTDISCUSSIONANDANALYSIS管理層討論及分析VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司14Liquidity, Financial Resources and Capital StructureAs a t 31 December 2023, net assets o f the Group reached approx imate ly RMB409.0 mi l l ion (31 December 2022: approximately RMB373.4 million). As at 31 December 2023, cur rent assets and cur rent l iabi l i t ies of the Group reached approximately RMB308.5 million (31 December 2022: approximately RMB285.5 million) and approximately RMB191.3 million (31 December 2022: approximately RMB148.9 million). As at 31 December 2023, the current ratio of the Group was 161.3%, as compared to 191.7% as at 31 December 2022.The Group normally f inances its operations from cash generated from its operating activities and bank borrowings. As at 31 December 2023, outstanding bank borrowings and other borrowings of the Group was approximately RMB326.7 million (31 December 2022: approximately RMB215.5 million). These bank borrowings and other borrowings were generally secured by its property, plant and equipment and land lease prepayment. As at 31 December 2023, bank balances and cash of the Group reached approximately RMB78.6 million (31 December 2022: approximately RMB85.6 million). Net gearing ratio (total borrowings minus cash and cash equivalents and divided by shareholders’ equity) of the Group as of 31 December 2023 was 61.6% (31 December 2022: 35.1%).The Group has sufficient cash and available bank credit to meet the commitment and its operating cash requirement.The Group’s trading and monetary assets are denominated in RMB. The Group is exposed to financial risks through its use of financial instruments in its ordinary course of operations and in its investment activities. The financial risks include market risks (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Group’s overall financial risk management policies focuses on the unpredictability and volatility at financial markets and seeks to minimise potential adverse effects on the financial position, financial performance and cash flows of the Group. No derivative financial instruments are used to hedge any risk exposures.Gearing RatioGearing ratio is calculated by dividing total borrowings by total equity at the period-end date and expressed as a percentage. The gearing ratio of the Group as at 31 December 2023 was approximately 82.6% as compared to approximately 60.4% as at 31 December 2022. The increase in gearing ratio was mainly due to the increase in project loans in 2023.流動資金、財務資源及資本結構於2023年12月31日，本集團的資產淨值約為人民幣409.0百萬元（2022年12月31日：約人民幣373.4百萬元）。

於2023年12月31日，本集團的流動資產約達人民幣308.5百萬元（2022年12月31日：約人民幣285.5百萬元），而流動負債則約為人民幣191.3百萬元（2022年12月31日：約人民幣148.9百萬元）。

於2023年12月31日，本集團的流動比率為161.3%，而於2022年12月31日則為191.7%。

本集團主要使用經營活動所得現金及銀行借款為其業務提供資金。

於2023年12月31日，本集團的未償還銀行借款及其他借款約為人民幣326.7百萬元（2022年12月31日：約人民幣215.5百萬元）。

該等銀行借款及其他借款一般以本集團物業、廠房及設備以及土地租賃預付款項抵押。

於2023年12月31日，本集團持有銀行結餘及現金約人民幣78.6百萬元（2022年12月31日：約人民幣85.6百萬元）。

本集團截至2023年12月31日的淨資產負債比率（借款總額減現金及現金等價物除以股東權益）為61.6%（2022年12月31日：35.1%）。

本集團具備充裕現金及可供動用的銀行備用額以應付其承擔及營運資金需要。

本集團的交易及貨幣資產主要以人民幣計值。

本集團就於日常業務過程及投資活動中使用金融工具承受財務風險。

財務風險包括市場風險（包括外幣風險、利率風險及其他價格風險）、信貸風險及流動資金風險。

本集團的整體財務風險管理政策專注於金融市場的不可預測性及波動性，及尋求盡量減少對本集團財務狀況、財務表現及現金流量可能造成的不利影響。

概無採用衍生金融工具對沖任何風險。

資產負債比率資產負債比率乃按期末當日借款總額除以總權益計算，並以百分比表示。

於2023年12月31日，本集團的資產負債比率約為82.6%，而於2022年12月31日則約為60.4%。

資產負債比率增加的主要原因為本集團於2023年項目貸款增加所致。

MANAGEMENTDISCUSSIONANDANALYSIS管理層討論及分析15Annual Report 2023年報Pledge of AssetsAs at 31 December 2023, certain of the Group’s assets were pledged to secure bank and other borrowings of the Group. The aggregate carrying amount of the assets of the Group pledged at 31 December 2023 was approximately RMB150.3 million.Treasury PolicyThe Group has adopted a prudent f inancial management approach towards its treasury policy and thus maintained a healthy financial position throughout the period. The Board closely monitors the Group’s liquidity position to ensure that the liquidity structure of the Group’s assets, liabilities and other commitments can meet its funding requirements at all times.Foreign Exchange RiskThe Group mainly operates in the PRC. Most of the operating transactions and revenue were settled in RMB and the Group’s assets and liabilities are primarily denominated in RMB. However, the Group has certain bank balances and trade receivables denominated in US dollars and Hong Kong dollars amounting to approximately RMB58.4 million and RMB1.8 million, respectively, as at 31 December 2023 which expose the Group to foreign currency risk. The Group does not have a foreign currency hedging policy. However, the Group manages the risk by closely monitoring the movements of the foreign currency rate and would consider hedging against significant foreign currency exposure should it be necessary.Trade and Other ReceivableFor the year ended 31 December 2023, the trade and other receivable of the Group were approximately RMB209.9 million.As at 31 December 2023, the net trade receivables of the Group amounted to approximately RMB173,791,000, among which approximately RMB5,202,000 has been net off with lifetime expected credit lossess (“ECL”).資產抵押於2023年12月31日，本集團已抵押若干資產以擔保本集團銀行及其他借款。

本集團已抵押資產於2023年12月31日的賬面總值約為人民幣150.3百萬元。

庫務政策本集團在制定庫務政策時採取審慎的財務管理方針，因此財務狀況於整個期間保持良好。

董事會密切監察本集團的流動資金狀況，以確保本集團資產、負債及其他承擔的流動資金結構能時刻滿足資金需要。

外匯風險本集團主要在中國經營業務。

大部分業務交易及收益以人民幣結算，本集團的資產及負債亦主要以人民幣計值。

不過，於2023年12月31日，本集團的若干銀行結餘及貿易應收款項以美元及港元計值，金額分別約為人民幣58.4百萬元及人民幣1.8百萬元，致使本集團承受外匯風險。

本集團並無制定任何外匯對沖政策。

然而，本集團會密切關注外幣匯率變動來管理有關風險，並在有需要時考慮對沖重大外匯風險。

貿易及其他應收款項截至2023年12月31日止年度，本集團的貿易及其他應收款項約為人民幣209.9百萬元。

於2023年12月31日，本集團的貿易應收款項淨額約為人民幣173,791,000元，其中已扣除貿易應收款項的全期預期信貸虧損（「預期信貸虧損」）。

MANAGEMENTDISCUSSIONANDANALYSIS管理層討論及分析VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司16The Group's ECL allowance has been taken into consideration the historical credit loss experience of the customers over the years, therefore the ECL allowance was sufficient to cover the expected credit loss of trade receivable for the year ended 31 December 2023. The ECL rate as disclosed in Note 36.5 to the consolidated financial statements has been adjusted based on (i) the average historical credit loss experience of the customers; (ii) the forward-looking factors specific to the customers; and (iii) the economic environment for the year ended 31 December 2023. To the best knowledge and information of the Directors, as at 31 December 2023 and up to the date of this annual report, the Company was not aware that those customers have any financial difficulties in repaying the relevant trade receivables as these customers are either listed companies or top players in the papermaking industries or customers which have/will have ongoing and/or potential future business relationships with the Group.The Group has implemented various measures to follow up on the trade receivable balances, including introducing incentive measures for sales personnel to increase their effort and motivation in collecting trade receivables and has been continuously monitoring the payments from those customers and contacting them to follow up on the status of their payments. The Directors believed that the trade receivables as at 31 December 2023 would be fully recovered progressively and no fur ther impairment loss was recognised thereby.Contingent LiabilitiesAs at 31 December 2023, the Group did not have any material contingent liabilities.SIGNIFICANTINVESTMENTSHELD, MATERIALACQUISITIONSANDDISPOSALS OFSUBSIDIARIES, ASSOCIATESAND JOINTVENTURES, ANDFUTUREPLANS FORMATERIALINVESTMENTSORCAPITAL ASSETSSave as disclosed in this repor t, there were no other significant investments held, no material acquisitions or disposals of subsidiaries, associates and joint ventures, nor was there any plan authorized by the Board for other material investments or additions of capital assets as at 31 December 2023.本集團的預期信貸虧損撥備已考慮客戶歷年的歷史信貸虧損經驗，因此預期信貸虧損撥備足以彌補截至2023年12月31日止年度的貿易應收款項的預期信貸虧損。

綜合財務報表附註36.5所披露的預期信貸虧損率已根據(i)客戶的平均歷史信貸虧損經驗；(ii)針對客戶的前瞻性因素；及(iii)截至2023年12月31日止年度的經濟環境而作出調整。

據董事所深知及盡悉，於2023年12月31日及直至本年報日期，本公司並不知悉該等客戶在償還相關貿易應收款項方面存在任何財務困難，因為該等客戶均為上市公司或與本集團有╱將有持續及╱或潛在未來業務關係的造紙行業頂尖企業或客戶。

本集團已採取多項措施跟進應收款項餘額，包括為銷售人員推出獎勵措施，以加大其收回應收款項的努力及積極性，並持續監控該等客戶的付款情況並聯繫彼等跟進付款狀況。

董事相信，於2023年12月31日的貿易應收款項將逐步全數收回，因而不會進一步確認減值虧損。

或然負債於2023年12月31日，本集團並無任何重大的或然負債。

所持主要投資、重大收購及出售附屬公司、聯營公司及合營企業以及有關重要投資或資本資產之未來計劃除本報告所披露者外，概無持有其他主要投資、重大收購或出售附屬公司、聯營公司及合營企業，於2023年12月31日亦無經董事會授權之有關其他重要投資或資本資產添置的任何計劃。

MANAGEMENTDISCUSSIONANDANALYSIS管理層討論及分析17Annual Report 2023年報EMPLOYEEANDREMUNERATIONPOLICYAs at 31 December 2023, the Group had 357 employees (as at 31 December 2022: 327 employees). As at 31 December 2023, the total staff cost, including salaries, wages and other benefits, and contributions to defined contribution plans, amounted to approximately RMB41.2 million.The remuneration package of fered by the Group to its employees generally includes salary, allowances and payment for welfare contributions, including social insurance contributions and housing provident fund contributions. The Group determines i ts employees’ remunerat ions based on each employee’s qualif ication, relevant experience, position and seniority. The Group conducts annual review on salary increments, bonuses and promotions based on the performance of each employee. The Group provides regular on-the-job training to the employees and conducts yearly reviews of their performance. The Group believes that these initiatives have contributed to stronger work incentive among its employees.USEOFNETPROCEEDSFROMTHESHARE OFFEROn 29 December 2021, the Company offered 114,200,000 ordinary shares at the range of HK$1.22 per share to HK$1.44 per share for subscription. The offer price was determined at HK$1.22 and the shares of the Company were successfully listed on the Main Board of the Stock Exchange on 11 January 2022. Net proceeds from the Listing (after deduction of underwriting fees and commissions and other listing expense) were approximately HK$92.8 million. In addition, the Over-allotment Option (as defined in the prospectus of the Company dated 29 December 2021 (the “Prospectus”)) was partially exercised and the Company further issued 3,442,000 shares, representing approximately 3.0% of the number of shares of the Company initially offered at HK$1.22. The additional net proceeds from the partial exercise of the Over-allotment Option were approximately HK$4.2 million.僱員及薪酬政策於2023年12月31日，本集團擁有357名僱員（於2022年12月31日：327名僱員）。

於2023年12月31日，員工成本總額（包括薪金、工資及其他福利以及界定供款計劃供款）約為人民幣41.2百萬元。

本集團向僱員提供的薪酬待遇一般包括薪金、津貼及繳付福利供款，包括社會保險供款及住房公積金供款。

本集團根據每名僱員的資格、相關經驗、職位及資歷釐定僱員薪酬。

本集團根據每名僱員的績效每年進行薪酬調升、花紅及晉升審查。

本集團為僱員提供定期在職培訓，並按年評審彼等的績效。

本集團認為，該等措施有利於激勵僱員的工作。

股份發售所得款項淨額用途本公司於2021年12月29日以每股股份1.22港元至每股股份1.44港元發售114,200,000股普通股以供認購。

發售價釐定為1.22港元，本公司股份於2022年1月11日在聯交所主板成功上市。

扣除包銷費用及佣金以及其他上市開支後的上市所得款項淨額約為92.8百萬港元。

此外，超額配股權（定義見本公司日期為2021年12月29日的招股章程（「招股章程」））獲部份行使，本公司再發行3,442,000股股份，相當於按1.22港元初始提呈認購的本公司股份數目約3.0%。

部分行使超額配股權收取的額外所得款項淨額約為4.2百萬港元。

MANAGEMENTDISCUSSIONANDANALYSIS管理層討論及分析VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司18自上市日期起直至2023年12月31日，所得款項淨額的動用情況分析載列如下：於2023年12月31日，尚未動用的所得款項淨額約為16.4百萬港元。

尚未動用的所得款項淨額以計息存款形式存放於香港及中國認可金融機構或持牌銀行。

截至2023年12月31日，已動用的所得款項淨額已按照先前於招股章程中披露的計劃用途動用，餘下的所得款項淨額預期亦將按計劃動用。

餘下的尚未動用所得款項淨額預期將於2024年12月31日或之前動用。

An analysis of the utilisation of the net proceeds from the date of the Listing up to 31 December 2023 is set out below:PercentageAllocated use of proceedsUsed as of 31 December 2023Unused balance as of 31 December 2023Proposed timetable for the use of unutilised net proceeds百分比所得款項的分配用途截至2023年12月31日已動用截至2023年12月31日尚未動用結餘動用尚未動用所得款項淨額的建議時間表(HK$ million) (HK$ million) (HK$ million)（百萬港元） （百萬港元） （百萬港元）Purchase machinery to upgrade production sites購買機器以升級生產基地40% 38.838.8 —Strengthen research and development capabilities加強研發能力20% 19.412.76.7 On or before 31December 20242024年12月31日或之前Pursue strategic acquisitions尋求策略性收購10% 9.7 — 9.7 On or before 31 December 20242024年12月31日或之前Reduce indebtedness減少債務20% 19.419.4 —Working capital and other general corporate purpose作營運資金及其他一般企業用途10% 9.79.7 —100% 97.080.616.4As at 31 December 2023, the amount of unutilised net proceeds amounted to approximately HK$16.4 mill ion. The unutilised net proceeds were placed in interest-bearing deposits with authorised financial institutions or licensed banks in Hong Kong and the PRC.As of 31 December 2023, the utilised net proceeds were applied in accordance with the planned use as previously disclosed in the Prospectus and the remaining net proceeds are expected to be used as planned. The remaining unutilised net proceeds are expected to be utilised on or before 31 December 2024.CORPORATEGOVERNANCEREPORT企業管治報告19Annual Report 2023年報企業管治常規本公司致力於保持高水準的企業管治，以保障股東利益，並提升企業價值及問責性。

本公司已採納上市規則附錄C1所載企業管治守則（「企業管治守則」）的所有守則條文，為其自身的企業管治常規守則。

董事會已審閱本公司的企業管治常規，並信納本公司於截至2023年12月31日止年度已遵守企業管治守則的所有守則條文。

本公司將繼續提升適用於其業務操守及增長的企業管治常規，並不時檢討有關常規，確保其符合企業管治守則並與最新發展一致。

董事進行證券交易本公司已採納上市規則附錄C3所載之上市發行人董事進行證券交易的標準守則（「標準守則」），作為其本身就董事進行證券交易之行為守則。

經向全體董事作出特定查詢後，各董事確認於截至2023年12月31日止年度一直遵守標準守則。

董事會董事會（包括所有獨立非執行董事）負責領導及控制本公司，並制訂整體政策及檢討本集團營運及財務表現。

整體策略事宜、主要收購及出售、年度預算、年度及中期業績、建議推薦董事委任或連任、批准重大資本交易及其他重大營運及財務事宜上，董事會保留決策或審議的權利。

管理層獲董事會委派權力及責任，負責本集團日常管理。

此外，董事會亦向董事委員會委派多項責任。

該等委員會的詳情載於本企業管治報告。

CORPORATEGOVERNANCEPRACTICEThe Company is committed to maintain high standards of corporate governance to protect the interests of its shareholders and to enhance corporate value and accountability. The Company has adopted all the code provisions in the Corporate Governance Code (the “CGCode”) in Appendix C1 of the Listing Rules as its own code on corporate governance practices. The Board has reviewed the Company’s corporate governance practices and is satisfied that the Company has complied with all code provisions of the CGCode for the year ended 31 December 2023. The Company will continue to enhance its corporate governance practices appropriate to the conduct and growth of its business and to review such practices from time to time to ensure that it complies with the CGCode and align with the latest developments.DIRECTORS’ SECURITIESTRANSACTIONSThe Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (the “Model Code”) as set out in Appendix C3 to the Listing Rules as its own code of conduct regarding Directors’ securities transactions. Having made specific enquiries of all the Directors, each of the Directors has confirmed that he/she has complied with the Model Code for the year ended 31 December 2023.BOARDOFDIRECTORSThe Board (including all independent non-executive Directors) is responsible for the leadership and control of the Company, and setting up the overall strategy as well as reviewing the operation and financial performance of the Group. The Board reserved for its decision or consideration matters covering overall strategy, major acquisitions and disposals, annual budgets, annual and interim results, recommendations on Directors’ appointment or re-appointment, approval of major capital transactions and other significant operational and financial matters. The management was delegated the authority and responsibility by the Board for the daily management of the Group. In addition, the Board has also delegated various responsibilities to the Board committees. Further details of these committees are set out in this corporate governance report.CORPORATEGOVERNANCEREPORT企業管治報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司20CompositionAs at the date of this annual report, the Board comprises seven Directors and their respective roles are as follows:Executive DirectorsMs. Shen Genlian (Chairperson)Mr. Zhou Jun (Chief executive officer)Mr. Xie ZongguoMs. Yuan AomeiIndependent non-executive Directors Mr. Ip Wang HoiMr. Zhang Shenjin Mr. Wang YunchenThe biographical details of the Directors are set out in the sect ion headed “Biographies of Directors and Senior Management” of this annual report. Save for Mr. Zhou Jun, being the spouse of Ms. Shen Genlian, the Chairperson of the Board (the “Chairperson”), the Board members have no relationship (whether financial, business, family or other material or relevant relationships) amongst members of the Board.Board meetings and general meetingsThe Board meets regularly to discuss the overall strategy as well as the operation and financial performance of the Group, in addition to the meetings for reviewing and approving the Group’s annual and interim results. The Directors had participated in the Board meetings as indicated below. For those Directors who could not attend these meetings in person, they participated through electronic media.The company secretary of the Company (the “Company Secretary”) assists the Chairperson to prepare the agenda of the meetings and each Director may request to include any relevant matters on the agenda. Generally, at least 14 days’ notice is given for the regular meetings by the Company. All substantive agenda items have comprehensive briefing papers, which are, in general, circulated three days before convening each Board meeting.Between scheduled meetings, senior management of the Group provides to the Directors, on a regular basis, monthly updates and other information with respect to the performance and business activities of the Group. It enables the Board to make informed assessment of financial and other decisions.組成於本年度報告日期，董事會由七名董事組成，各人的職位如下：執行董事沈根蓮女士（主席）周駿先生（行政總裁）謝宗國先生袁傲梅女士獨立非執行董事葉耘開先生張慎金先生王運陳先生董事的詳細履歷載於本年度報告「董事及高級管理層履歷」一節。

除周駿先生為董事會主席（「主席」）沈根蓮女士之配偶外，董事會成員之間概無任何財務、業務、親屬或其他重大或相關關係。

董事會會議及股東大會除了審閱及批准本集團年度及中期業績的會議外，董事會亦定期會面以討論本集團的整體策略以及營運及財務表現。

董事參與董事會會議的情況如下。

未能親身出席的董事則透過電子媒介參與會議。

本公司公司秘書（「公司秘書」）協助主席編製會議議程，每名董事可要求將任何相關的事項列入議程。

一般而言，本公司舉行定期會議須於至少14天前發出通知。

所有主要議程項目均有全面簡介文件，一般於每次董事會會議召開前三天傳閱。

在已編定會期的會議之間，本集團高級管理層定期向董事提供每月更新及其他有關本集團表現與業務活動的資料。

此舉令董事會可對財務及其他決策作出知情評估。

CORPORATEGOVERNANCEREPORT企業管治報告21Annual Report 2023年報All the Directors are able to seek advice and services from the Company Secretary on the Board procedures and all applicable laws, rules and regulations, and corporate governance matters. Draft minutes of Board meetings and meetings of Board committees are circulated to all Directors for comment and approval as soon as practicable after the meetings. Minutes of Board meetings and meetings of Board committees are kept by the Company Secretary and all Board members are given a copy of the minutes for their record. Should a matter being considered involve a potential conflict of interest of a Director, the Director involved in the transaction would be requested to leave the boardroom and abstain from voting. The matter would be discussed and resolved by other Directors in a form of physical meeting. Policy is in place that the Directors, upon reasonable request, may seek independent professional advice on issues related to the Group’s business at the Company’s expenses. The attendance of each Director at the Board meetings and general meeting during the year is set out below:Number ofBoard meetingsattended/convenedAttendance rateNumber ofgeneral meetingsattended/convenedAttendance rate已出席╱已舉行之董事會會議次數出席率已出席╱已舉行之股東大會次數出席率Executive Directors執行董事Ms. Shen Genlian沈根蓮女士4/4100% 1/1100%Mr. Zhou Jun周駿先生4/4100% 1/1100%Mr. Xie Zongguo謝宗國先生4/4100% 1/1100%Ms. Yuan Aomei袁傲梅女士4/4100% 1/1100%Independent non-executive Directors獨立非執行董事Mr. Ip Wang Hoi葉耘開先生4/4100% 1/1100%Mr. Zhang Shenjin張慎金先生4/4100% 1/1100%Mr. Wang Yunchen王運陳先生4/4100% 1/1100%全體董事可就董事會程序及所有適用法律、規則及法規以及企業管治事宜向公司秘書尋求意見及服務。

董事會及董事會委員會的會議記錄草擬本將在會後儘快供全體董事傳閱以提出意見及審批。

董事會及董事會委員會的會議記錄由公司秘書保存，且全體董事會成員均可獲得會議記錄之副本以作記錄。

倘所考慮事項涉及董事之潛在利益衝突，則涉及該項交易之董事將須避席且放棄表決。

有關事項將以實體會議形式由其餘董事討論及決議。

本公司政策規定董事可合理要求就本集團業務相關事宜尋求獨立專業意見，費用由本公司承擔。

每名董事於年內出席董事會會議及股東大會的情況如下：CORPORATEGOVERNANCEREPORT企業管治報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司22Appointment, re-election and removal of DirectorsE a c h o f t h e exe c u t i ve D i r e c t o r s a n d i n d e p e n d e n t non-executive Directors has entered into a service contract with the Company for a specific term. The Directors have been appointed for a term of three years commencing from 22 June 2022, unless and until it is terminated by either the Company or such Director. The term of appointment of each Director is subject to retirement by rotation and re-election at the annual general meeting of the Company (the “AGM”) in accordance with its articles of association of the Company (the “Articles of Association”) and the Listing Rules.Pursuant to the Articles of Associations, one-third of all Directors (whether executive or non-executive) shall retire from office by rotation provided that every Director shall be subject to retirement by rotation and re-election at each AGM at least once every three years.The Ar t ic les of Associat ion provide that any Director appointed by the Board to fill a casual vacancy in the Board or as an addition to the existing Board shall hold office only until the first AGM of the Company. Any Director so appointed after his/her appointment and shall then be eligible for re-election.The Company may, in accordance with the Ar t ic les of Association, by ordinary resolution remove any Director before the expiration of his/her term of office notwithstanding anything to the contrary in the Articles of Association or in any agreement between the Company and such Director.委任、重選及罷免董事各執行董事及獨立非執行董事已與本公司訂立指定期限的服務合約。

董事的委任期由2022年6月22日起為期三年，除非或直至由本公司或有關董事終止。

根據本公司組織章程細則（「組織章程細則」）及上市規則，每名董事須在本公司股東週年大會（「股東週年大會」）上輪值退任及連任。

根據組織章程細則，全體執行及非執行董事中三分之一須輪值告退，惟各董事至少須每隔三年在股東週年大會上輪值退任及連任。

組織章程細則規定，由董事會委任以填補董事會臨時空缺或增加現有董事會人數的任何董事，其任期僅直至獲委任後的本公司第一屆股東週年大會。

任何由此委任的董事合資格膺選連任。

本公司可根據組織章程細則透過普通決議案將任何任期未滿的董事撤職，即使組織章程細則或本公司與該董事訂立的任何協議有任何相反規定。

CORPORATEGOVERNANCEREPORT企業管治報告23Annual Report 2023年報Directors’ trainingCode provision C.1.4 of the CGCode provides that directors should participate in continuous professional development to develop and refresh their knowledge and skills. This is to ensure that their contribution to the Board remain informed and relevant. All the Directors are encouraged to participate in continuous professional development activities by ways of attending training and/or reading materials relevant to the Company’s business or to the Directors’ duties and responsibilities. A summary of professional training received by the Directors for the year ended 31 December 2023 according to the records provided by the Directors is as follows:Attending seminar(s)/programme(s)/conference(s) and/orreading materials relevantto the business ordirectors’ duties出席座談會╱活動╱研討會及╱或閱讀與業務或董事職責相關的文件Ms. Shen Genlian沈根蓮女士Mr. Zhou Jun周駿先生Mr. Xie Zongguo謝宗國先生Ms. Yuan Aomei袁傲梅女士Mr. Ip Wang Hoi葉耘開先生Mr. Zhang Shenjin張慎金先生Mr. Wang Yunchen王運陳先生Directors’ and Officers’ Liabilities InsuranceThe Company has arranged appropriate insurance cover for the Directors’ and of f icers’ liabilities in respect of legal actions against Directors, officers and senior management of the Company arising out of corporate activities.董事培訓企業管治守則守則條文C.1.4的規定，董事應參與持續專業發展，發展並更新其知識及技能，以確保其繼續在具備全面資訊及切合所需的情況下對董事會作出貢獻。

全體董事應透過出席培訓及╱或閱讀與本公司業務或董事職能及職責相關的文件，參與持續專業發展活動。

根據董事提供的記錄，截至2023年12月31日止年度，董事接受的專業培訓概要如下：董事及高級職員之責任保險本公司已為董事及高級職員購買合適之保險，就本公司董事、高級職員及高級管理層因公司業務所承擔的法律責任提供保障。

CORPORATEGOVERNANCEREPORT企業管治報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司24CHAIRMANANDCHIEFEXECUTIVEIn accordance with the code provision C.2.1 of the CGCode, the roles of the chairman and the chief executive should be separate and should not be performed by the same individual. Currently, Ms. Shen Genlian, the Chairperson, is responsible for the for strategic development and providing advice on the operation and management of the Group. Mr. Zhou Jun, the chief executive officer of the Company, is responsible for the overall management, strategic and major decisions on the development and planning and operation of the Group.INDEPENDENTNON-EXECUTIVEDIRECTORSPursuant to the requirement of Rules 3.10 and 3.10A of the Listing Rules, the Company has appointed three independent non - execut i ve D i rec to rs , one o f whom has appropr ia te professional qualification in accounting and financial management exper t ise. A l l independent non-execut ive Direc tors have confirmed their independence, as set out in Rule 3.13 of the Listing Rules, to the Company and the Board considers that all independent non-executive Directors have satisf ied their independence of the Group.Al l independent non-execut ive Directors have of fered suf f icient time and ef for ts to serve the business af fairs of the Company. They also possess appropriate academic and professional qualifications and related management experience and have contr ibuted to the Board with their professional opinion. The Board believes that the participation of independent non-executive Directors shall offer their independent judgment on issues relating to strategy, performance, conflict of interest and management process such that the interests of all shareholders and the Group are considered and safeguarded.To ensure that independent views and input are available to the Board, the Company has established mechanisms including (i) strengthening the independent non-executive Directors’ recruitment process to include criteria such as each candidates’ available time commitments and qualification; (ii) reviewing the number of independent non-executive Directors on an annual basis; (iii) performing additional assessment or evaluation of independent non-executive Directors’ contribution; and (iv) engage external independent professional advisors to assist performance of the Directors’ duties. The Board will review the implementation and effectiveness of the above mechanisms on an annual basis.During the year under review, the Chairperson had held a meeting with the independent non-executive Directors without the presence of the other executive Directors.主席及行政總裁根據企業管治守則守則條文C.2.1，主席及行政總裁的職位應作區分，不應由同一人擔任。

現時沈根蓮女士為主席，負責策略發展及就本集團的營運及管理提供意見。

周駿先生為本公司行政總裁，負責本集團整體管理及就發展、規劃及營運作出策略性及重大決策。

獨立非執行董事根據上市規則第3.10條及3.10A條的規定，本公司已委任三名獨立非執行董事，其中一人具備相關專業會計資歷及財務管理專業知識。

全體獨立非執行董事均已按照上市規則第3.13條所載向本公司確認彼等之獨立身份，且董事會認為全體獨立非執行董事均信納彼等獨立於本集團。

全體獨立非執行董事均付出大量時間及努力處理本公司業務，且具備相關學歷、專業資格與有關管理經驗，為董事會提供專業意見。

董事會相信，獨立非執行董事之參與可對策略、表現、利益衝突及管理流程事宜提供獨立判斷，並能顧及與保障全體股東及本集團之利益。

為確保董事會具備獨立意見及觀點，本公司已設立以下機制：(i)加強獨立非執行董事的聘用流程，將各候選人可付出的時間及資歷等納入為條件；(ii)每年檢討獨立非執行董事的人數；(iii)對獨立非執行董事的貢獻進行額外評估或評價；及(iv)聘用外部獨立專業顧問協助履行董事職責。

董事會將每年檢討上述機制的執行情況及成效。

於回顧年度，主席已在其他執行董事不在場的情況下與獨立非執行董事舉行一次會議。

CORPORATEGOVERNANCEREPORT企業管治報告25Annual Report 2023年報BOARDCOMMITTEESImplementation and execution of the policies and strategies formulated by the Board and the daily operations are delegated from the Board to the management of the Company and the Board reviewed the written delegation arrangements regularly, so that the Board is able to make informed decisions. In addition, an audit committee (the “Audit Committee”), a remuneration committee (the “Remuneration Committee”) and a nomination commit tee (the “Nomination Committee”) have been set up to assist the Board in fulfilling certain responsibilities. All committees have been established with defined written terms of reference, which were posted on the websites of the Stock Exchange () and the Company (). All committees shall report to the Board on their decisions or recommendat ions made. A l l commit tees are prov ided with sufficient resources to discharge their duties and, upon reasonable request, are able to seek independent professional advice in appropriate circumstances, at the Company’s expense.Audit CommitteeAudit Committee was established with writ ten terms of reference in compliance with Rule 3.21 of the Listing Rules and the CGCode. The primary duties of the Audit Committee are, among other things, to review and supervise the Group's financial reporting process and internal control and risk management system, nominate and monitor external auditors, provide advice and comments to the Board on matters related to corporate governance and perform other duties and responsibilities as assigned by the Board.The Audi t Commit tee cons is ts of three independent non-executive Directors, namely Mr. Ip Wang Hoi, Mr. Zhang Shenjin and Mr. Wang Yunchen. Mr. Wang Yunchen currently serves as the chairman of the Audit Committee.The following is a summary of work performed by the Audit Committee during the year: reviewed annual results of 2022 and annual report of 2022, interim results of 2023 and interim report of 2023; discussed with the management and the external auditor the accounting policies and practices which may affect the Group; reviewed the report prepared by the external auditor covering major findings in the course of the audit and the accounting and financial reporting matters;董事會委員會董事會授權本公司管理層落實及執行董事會制定的政策及策略以及處理日常營運，而董事會已定期審閱書面授權安排，故董事會能作出知情決定。

此外，審核委員會（「審核委員會」）、薪酬委員會（「薪酬委員會」）、以及提名委員會（「提名委員會」）已告成立，以協助董事會履行若干職責。

所有委員會均具有明確的書面職權範圍，該等範圍刊載於聯交所網站()及本公司網站()。

所有委員會須向董事會匯報其作出的決定或推薦建議。

所有委員會均獲提供充足資源以履行其職務，並可應合理要求於適當情況下徵詢獨立專業意見，費用由本公司承擔。

審核委員會本公司已成立審核委員會，並根據上市規則第3.21條及企業管治守則書面列明其職權範圍。

審核委員會的主要職責為（其中包括）檢討及監督本集團的財務申報流程及內部監控及風險管理系統，提名及監督外聘核數師，就企業管治相關事宜向董事會提供意見及建議，並履行董事會委派的其他職務及職責。

審核委員會由三名獨立非執行董事組成，分別為葉耘開先生、張慎金先生及王運陳先生。

王運陳先生現時擔任審核委員會主席。

以下為審核委員會於年內所進行的工作概要：審閱2022年年度業績及2022年年度報告、2023年中期業績及2023年中期報告；與管理層及外聘核數師討論可能影響本集團的會計政策與常規；審閱外聘核數師編製的報告（當中涵蓋其於審核過程的主要發現）以及會計及財務報告事宜；CORPORATEGOVERNANCEREPORT企業管治報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司26 reviewed the effectiveness of the risk management and internal control systems of the Group; and considered the re-appointment of external auditor of the Company.The Audit Committee held two meetings during the year ended 31 December 2023. Individual at tendance of each committee member at the meeting during the year ended 31 December 2023 is as follows:Attendance/Number of meetingsName of Committee Member委員會成員姓名出席次數╱會議次數Mr. Ip Wang Hoi葉耘開先生2/2Mr. Zhang Shenjin張慎金先生2/2Mr. Wang Yunchen王運陳先生2/2The annual results of the Group for the year ended 31 December 2023 have been reviewed by the Audit Committee before submission to the Board for approval. The Audit Committee was of the view that the preparation of such results complied with the applicable accounting standards and requirements as well as the Listing Rules and that adequate disclosures have been made.Remuneration CommitteeThe Remuneration Committee was established with written terms of reference in compliance with Rule 3.25 of the Listing Rules and the CGCode. The primary duties of the Remuneration Committee are, among other things, to make recommendations to the Board on the Company’s policy for human resource management as well as establish and review policies and structure in relation to remuneration for the Directors and senior management.The Remuneration Committee consists of one executive Director, Mr. Zhou Jun and two independent non-executive Directors, Mr. Ip Wang Hoi and Mr. Zhang Shenjin. Mr. Ip Wang Hoi currently serves as the chairman of the Remuneration Committee.The following is a summary of work per formed by the Remuneration Committee during the year: Assessed the performance of the Directors and senior management of the Company; and Rev i e we d a n d r e c o m m e n d e d t o t h e B o a r d t h e remuneration policy and structure relating to the Directors and senior management of the Company.檢討本集團風險管理及內部監控系統的有效性；及考慮重新委任本公司的外聘核數師。

審核委員會於截至2023年12月31日止年度已舉行兩次會議。

各委員會成員於截至2023年12月31日止年度的會議出席次數如下：本集團截至2023年12月31日止年度的年度業績於提交董事會審批前，已由審核委員會審閱。

審核委員會認為，有關業績乃遵照適用會計準則及規定以及上市規則編製，並已作出充分披露。

薪酬委員會本公司已成立薪酬委員會，並根據上市規則第3.25條及企業管治守則書面列明其職權範圍。

薪酬委員會的主要職責為（其中包括）就本公司的人力資源管理政策向董事會提供建議，並制定及檢討有關董事及高級管理層薪酬的政策及架構。

薪酬委員會由一名執行董事周駿先生、及兩名獨立非執行董事葉耘開先生及張慎金先生組成。

葉耘開先生現時擔任薪酬委員會主席。

以下為薪酬委員會於年內所進行的工作概要：評估本公司董事及高級管理層的表現；及檢討薪酬政策及本公司董事及高級管理層的結構，並向董事會提出推薦建議。

CORPORATEGOVERNANCEREPORT企業管治報告27Annual Report 2023年報薪酬委員會於截至2023年12月31日止年度已舉行一次會議。

各委員會成員於截至2023年12月31日止年度的會議出席次數如下：本公司參考現行市場薪酬慣例制定具競爭力的薪酬政策，以吸引、挽留及激勵董事及本公司高級管理層實現本集團的策略目標。

董事及高級管理層的薪酬包括基本薪金、退休福利及酌情花紅。

董事不得自行批准其薪酬。

截至2023年12月31日止年度支付予董事的薪酬金額詳情載於綜合財務報表附註9。

提名委員會本公司已成立提名委員會，並根據企業管治守則書面列明其職權範圍。

提名委員會的主要職責為（其中包括）向董事會推薦填補董事會及╱或高級管理層空缺的人選、評估獨立非執行董事的獨立性、檢討董事須付出的時間並評估董事是否已付出足夠時間履行檢討及實施提名政策的職責，以及審議相關事宜。

提名委員會由包括一名執行董事沈根蓮女士、兩名獨立非執行董事葉耘開先生及王運陳先生。

沈根蓮女士現時擔任提名委員會主席。

以下為提名委員會於年內所進行的工作概要：檢討及審議提名政策、董事會架構、規模及組成；及評估獨立非執行董事的獨立性。

The Remuneration Committee held one meeting during the year ended 31 December 2023. Individual attendance of each committee member at the meeting during the year ended 31 December 2023 is as follows:Attendance/Number of meetingsName of Committee Member委員會成員姓名出席次數╱會議次數Mr. Zhou Jun周駿先生1/1Mr. Ip Wang Hoi葉耘開先生1/1Mr. Zhang Shenjin張慎金先生1/1The Company formulates a competitive remuneration policy by reference to prevailing market salary practices in order to attract, retain and motivate the Directors and senior management of the Company to achieve the strategic targets of the Group.The remuneration for the Directors and senior management comprises basic salary, retirement benefits and discretionary bonus . No D i rec to r i s a l l owed to approve h is / he r own remuneration. Details of the amount of emoluments of Directors paid for the year ended 31 December 2023 are set out in note 9 to the consolidated financial statements.Nomination CommitteeThe Nomination Committee was established with written terms of reference in compliance with the CGCode. The primary duties of the Nomination Committee are, among other things, to make recommendations to the Board regarding candidates to fill vacancies on the Board and/or in senior management, to assess the independence of the independent non-executive Directors, to review the time commitment required of the Directors and to evaluate whether the Directors have committed adequate time to discharge their responsibilities to review and implement the Nomination Policy and to consider related matters.The Nomination Committee consists of one executive Director, Ms. Shen Genlian, and two independent non-executive Directors, Mr. Ip Wang Hoi and Mr. Wang Yunchen. Ms. Shen Genlian currently serves as the chairperson of the Nomination Committee.The following is a summary of work per formed by the Nomination Committee during the year: Reviewed and considered the Nomination Policy, the structure, size and composition of the Board; and A s s e s s e d i n d e p e n d e n c e o f t h e i n d e p e n d e n t non-executive Directors.CORPORATEGOVERNANCEREPORT企業管治報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司28提名委員會負責甄選及推薦候任董事人選，當中考慮到平衡有關人選的專長、技能、經驗、專業知識、個人誠信及時間付出，本集團的業務要求及其他相關法定要求及法規。

此外，根據提名委員會的職權範圍及提名政策，提名委員會在審查董事會的組成時，將參考本公司董事會成員多元化政策以及有關政策所設定目標的完成進度。

本公司承認並擁護董事會成員多元化帶來的裨益。

提名委員會於截至2023年12月31日止年度已舉行一次會議。

各委員會成員於截至2023年12月31日止年度的會議出席次數如下：董事會成員多元化政策截至2023年12月31日止年度，董事會採納董事會成員多元化政策（「董事會成員多元化政策」），列出達致董事會多元化的方針。

本公司認為，董事會成員多元化可通過考慮多項因素達致，包括但不限於性別、年齡、文化及教育背景、種族、專業經驗、技能、知識及服務年期。

所有董事會成員均以用人唯才的原則委任，將根據甄選條件考慮各人選，並考慮成員多元化對董事會帶來的裨益。

甄選人才將基於多個多元化範疇，包括但不限於性別、年齡、文化及教育背景、專業經驗、技能及知識。

最終決定將基於所選候選人將為董事會帶來的價值及貢獻而作出。

The Nomination Commit tee carr ies out the process of selecting and recommending candidates for directorships by making reference to the balance of expertise, skills, experience, professional knowledge, personal integrity and time commitments of such individuals, the requirements of the business of the Group and other relevant statutory requirements and regulations. Further, pursuant to the terms of reference of the Nomination Committee and the Nomination Policy, the Nomination Committee, when reviewing the composition of the Board, will have regard to the Company’s Board Diversity Policy and the progress on achieving the objectives set for implementing the said policy. The Company recognises and embraces the benefits of diversity of Board members.The Nomination Committee held one meeting during the year ended 31 December 2023. Individual attendance of each committee member at the meeting during the year ended 31 December 2023 is as follows:Attendance/Number of meetingsName of Committee Member委員會成員姓名出席次數╱會議次數Ms. Shen Genlian沈根蓮女士1/1Mr. Ip Wang Hoi葉耘開先生1/1Mr. Wang Yunchen王運陳先生1/1BOARDDIVERSITYPOLICYDuring the year ended 31 December 2023, the Board adopted a board diversity policy (the “Board Diversity Policy”) setting out the approach to achieve diversity on the Board. The Company considered diversity of board members can be achieved through consideration of a number of aspects, including but not limited to gender, age, cultural and educational background, ethnicity, professional experience, skills, knowledge and length of service. All Board appointments will be based on meritocracy, and candidates will be considered against selection criteria, having regard for the benefits of diversity on the Board. Selection of candidates will be based on a range of diversity perspectives, including but not limited to gender, age, cultural and educational background, professional experience, skills and knowledge. The ultimate decision will be made upon the merits and contribution that the selected candidates will bring to the Board.CORPORATEGOVERNANCEREPORT企業管治報告29Annual Report 2023年報The Board’s composition as at the date of this report under diversified perspectives is summarised as follows:Designation委任職位Gender性別Age Group年齡組別Education background教育背景Professional experiences專業經驗（年）1234567Females女性EDs執行董事Bachelor學士31–4041–5010 or less than 10 years10年或10年以下11–20 years11–20年Over 20 years20年以上51–60Males男性INEDs獨立非執行董事Postgraduate or above研究生或以上As at 31 December 2023, the Board comprises seven members, two of whom is female director, thus achieving the goal of gender diversity in the Board. As at 31 December 2023, the ratio of male and female in the workforce is 56% and 44%, respectively; and the ratio of male and female in the senior management is 60% and 40% respectively. As such, the Company’s workforce and the senior management have both achieved gender diversity between males and females. The Company would continue to take into account of diversity perspectives in its hiring.The Nomination Committee will review the Board Diversity Policy and monitor its implementation on an annual basis. The Nomination Committee will report annually to shareholders on the process adopted in relation to the Board appointments and the consideration given to the diversity on the Board.NOMINATIONPOLICYThe Board has adopted a director nomination policy (the “Nomination Policy”) on 9 December 2021 in relation to the nomination, appointment, re-appointment of new Directors and the nomination procedure of the Company, which provides that in evaluating and selecting any candidate for directorship, the Nomination Committee shall consider the candidates’ character and integrity, professional qualifications, skills, knowledge and experience, independence, diversity on the Board, willingness to devote adequate time to discharge duties as a Board member and such other criteria that are appropriate to the business of the Company.於本報告日期，多元化範疇的董事會組成概述如下：於2023年12月31日，董事會由七名成員組成，其中兩名為女性董事，實現董事會性別多元化的目標。

於2023年12月31日，員工的男女比率分別為56%及44%；而高級管理層的男女比率分別為60%及40%。

因此，本公司的員工及高級管理層均已達致男女性別多元。

本公司於聘用人才時將繼續考慮多元層面。

提名委員會將每年審閱董事會成員多元化政策並監察其實施情況。

提名委員會將每年向股東匯報委任董事會成員所採用的程序以及對董事會成員多元化所作出的考慮。

提名政策董事會已於2021年12月9日就提名、委任、重新委任新董事及本公司的提名程序採納董事提名政策（「提名政策」），該政策規定提名委員會於評選任何董事候選人時，應當考慮候選人的品格及誠信、專業資格、技能、知識及經驗、獨立性、董事會多元化、彼是否願意投入足夠時間履行董事會成員的職責及適用於本公司業務的其他標準。

CORPORATEGOVERNANCEREPORT企業管治報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司30股息政策董事會已於2021年12月9日採納股息政策（「股息政策」）。

股息政策的概要披露如下。

待股東批准後並根據相關法律規定，在本集團獲利、經營環境穩定及本集團概無作出任何重大投資或承擔的情況下，經考慮下文詳述的各項因素後並按董事會不時釐定，本公司應當向股東派付年度股息。

其餘純利將用作本集團的發展及營運。

除年度股息外，股息政策亦允許本公司不時宣派特別股息。

於建議任何派息率時，董事會亦應當考慮（其中包括）(i)本公司的實際及預期財務表現；(ii)本集團的保留盈利及可供分派儲備；(iii)本集團的負債權益比率、股本回報率及相關財務契諾的水平；及(iv)整體經濟狀況、本集團業務的商業週期以及可能對本公司業務或財務表現及狀況產生影響的其他內部及外部因素。

本公司所宣派任何末期股息均須經股東於股東週年大會上以普通決議案批准，且不得超過董事會所建議的金額。

股息政策應予定期檢討，如須修改，則須提交董事會批准。

企業管治職能董事會負責履行企業管治守則守則條文A.2.1所載的企業管治職責，即：(i)制定及檢討本公司有關企業管治的政策和常規，並向董事會提供推薦建議；(ii)檢討及監督董事及高級管理層的培訓和持續專業發展；(iii)檢討及監察本公司有關遵守法律監管規定的政策和常規；(iv)制定、檢討及監察僱員及董事適用的操守準則及合規手冊（包括與證券交易相關方面）；及(v)檢討本公司遵守企業管治守則的情況及於本公司年報企業管治報告內的披露資料。

DIVIDENDPOLICYThe Board has adopted a dividend policy (the “Dividend Policy”) on 9 December 2021. A summary of the Dividend Policy is disclosed as below.Subject to the approval of the shareholders and requirement of the relevant law, the Company shall pay annual dividends to the shareholders if the Group is profitable, operations environment is stable and there is no significant investment or commitment made by the Group, after taking into account the factors as detailed below and determined by the Board from time to time. The remaining net profits will be used for the Group’s development and operations. The Dividend Policy allows the Company to declare special dividends from time to time in addition to the annual dividends.In proposing any dividend payout, the Board shall also take into account, inter alia, (i) the Company’s actual and expected financial performance; (ii) retained earnings and distributable reserves of the Group; (iii) the level of the Group’s debts to equity ratio, return on equity and the relevant financial covenants; and (iv) the general economic conditions, business cycle of the Group’s business and other internal and external factors that may have an impact on the business or financial performance and position of the Company.Any f inal dividends declared by the Company must be approved by an ordinary resolution of the shareholders at an AGM and must not exceed the amount recommended by the Board. The Dividend Policy shall be reviewed periodically and submitted to the Board for approval if amendments are required.CORPORATEGOVERNANCEFUNCTIONSThe Board is responsible for per forming the corporate governance dut ies set out in code provision A .2.1 of the CGCode, namely: (i) to develop and review the Company’s policies and practices on corporate governance and make recommendations to the Board; (i i) to review and monitor the training and continuous professional development of the Directors and senior management; (iii) to review and monitor the Company’s policies and practices on compliance with legal and regulatory requirements; (iv) to develop, review and monitor the code of conduct and compliance manual (including in relation to securities trading) applicable to employees and the Directors; and (v) to review the Company’s compliance with the CGCode and disclosure in the corporate governance report in the Company’s annual report.CORPORATEGOVERNANCEREPORT企業管治報告31Annual Report 2023年報During the Board meeting held on 28 March 2024, the Board reviewed the Company’s policies and practices on corporate governance and legal and regulatory compliance, training and continuous professional development par t ic ipat ions of the Directors, as well as the Company’s compliance with the CG Code.The Board acknowledges its responsibility in maintaining a sound and effective internal control and risk management systems for the Group to safeguard shareholders’ investments and assets of the Company at all times.COMPANYSECRETARYThe Company has appointed Ms. Mak Po Man Cherie as the company secretary of the Company. Ms. Mak Po Man Cherie of SWCSCorporate Services Group (Hong Kong) Limited, an external service provider, has been engaged by the Company as the company secretary to support the Board by ensuring good information flow within the Board and that the Board policy and procedures are followed. Ms. Liu Jinping is the financial controller of the Company, and is the primary contact of Ms. Mak Po Man Cherie at the Company.Ms. Mak has confirmed that she has complied with Rule 3.29 of the Listing Rules in relation to the professional training requirements.RISKMANAGEMENTANDINTERNAL CONTROLThe Board acknowledges its responsibility in maintaining a sound and effective internal control and risk management systems for the Group to safeguard the shareholders’ investments and assets of the Company at all times.The Company has established a set of comprehensive risk management policies and measures to identify, evaluate and manage risks arising from operations.The processes used to identi fy, evaluate and manage significant risks by the Group are summarised as follows:董事會已於2024年3月28日舉行董事會會議，並於會上檢討本公司有關企業管治及遵守法律監管規定的政策和常規、董事參與培訓及持續專業發展的情況，以及本公司遵守企業管治守則的情況。

董事會知悉其有責任為本集團維持穩健有效的內部監控及風險管理制度，以便隨時保障股東投資及本公司資產。

公司秘書本公司已委任麥寶文女士為本公司的公司秘書。

方圓企業服務集團（香港）有限公司（外聘服務提供商）的麥寶文女士已獲本公司委聘擔任本公司的聯席公司秘書，為董事會提供支援，確保董事會內資訊交流暢順以及董事會政策及程序獲委善遵循。

劉金萍女士為本公司之財務總監，亦為麥寶文女士於本公司的主要聯絡人。

麥女士確認，彼已遵守上市規則第3.29條有關專業培訓的規定。

風險管理及內部監控董事會知悉其有責任為本集團維持穩健有效的內部監控及風險管理制度，以便隨時保障股東投資及本公司資產。

本公司已制定一套全面的風險管理政策及措施，以便識別、評估及管理因營運產生的風險。

本集團用以識別、評估及管理重大風險的程序概述如下：CORPORATEGOVERNANCEREPORT企業管治報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司32風險識別識別可能對本集團業務及營運構成潛在影響的風險。

風險評估使用管理層制定的評估準則對已識別風險進行評估；及考慮風險對業務的影響及後果以及出現有關風險的可能性。

風險應對透過比較風險評估的結果，排列風險處理次序；及釐定風險管理策略及內部監控程序，以防止、避免或降低風險。

風險監察及匯報持續並定期監察風險，並確保設有適當的內部監控程序；於出現任何重大變動時，修訂風險管理策略及內部監控程序；及向管理層及董事會定期匯報風險監察結果。

監控程序旨在保障資產免被挪用及處置；確保遵守相關法例、規則及規例；確保有關為業務用途或公眾使用提供可靠財務資料的會計記錄得到妥善保管；及針對重大錯誤陳述、損失或欺詐行為提供合理保證。

Risk Identification Identif ies r isks that may potential ly af fect the Group’s business and operations.Risk Assessment Assesses the risks identified by using the assessment criteria developed by the management; and Considers the impact and consequence on the business and the likelihood of their occurrence.Risk Response Prioritises the risks by comparing the results of the risk assessment; and Determines the risk management strategies and internal control processes to prevent, avoid or mitigate the risks.Risk Monitoring and Reporting Performs ongoing and periodic monitoring of the risk and ensures that appropriate internal control processes are in place; Revises the risk management strategies and internal control processes in case of any significant change of situation; and Reports the results of risk monitoring to the management and the Board regularly.Control procedures have been designed to safeguard assets against misappropriation and disposition; ensure compliance with relevant laws, rules and regulations; ensure proper maintenance of accounting records for provision of reliable financial information used within the business or for publication; and to provide reasonable assurance against material misstatement, loss or fraud.CORPORATEGOVERNANCEREPORT企業管治報告33Annual Report 2023年報The Board is responsible for the risk management and internal control systems of the Company and reviewing their effectiveness. The Board oversees the overall risk management of the Group and endeavours to identify, control impact of the identified risks and facilitate implementation of coordinated mitigating measures. The Audit Committee assists the Board in the review, which covers operational, financial, compliance controls and risk management functions, to maintain an adequate and effective internal control system to safeguard the interests of the shareholders and the assets of the Group. The risk management and internal control systems of the Company are designed to manage rather than eliminate the risk of failures to achieve business objectives, and can only provide reasonable and not absolute assurance against material misstatement or loss. A review of the effectiveness of the Group’s risk management and internal control systems, including financial, operation and compliance controls, will be conducted by the Board at least annually.The Group does not have an internal audit function. Taking into account the size, nature and complexity of the Group’s business, the Board have sufficient capacity to oversee the design and implementation of the risk management and internal control system and to assess its effectiveness, and accordingly there is no immediate need to set up an internal audit function within the Group. The Directors will review annually the needs for internal audit function.The Company has engaged an external consultant to perform a review on the Group’s internal control and risk management systems. With the assistance of the external consultant, the Board conducted an annual review on the effectiveness of the internal control system of the Group and considered the adequacy of resources, qualifications and experience of staff of the Company’s accounting and financial reporting function, and their training programmes and budget. Save the Company's inadver tent oversight of not awaring the exceeding of the de minimis threshold of the continuing connected transactions as disclosed in the section headed "Continuing Connected Transactions" under the Directors' Report, the Board is not aware of any significant internal control and risk management weaknesses nor significant breach of limits or risk management policies, and considers the existing internal control system and risk management system effective and adequate.董事會負責本公司的風險管理及內部監控制度，並審視有關制度的有效性。

董事會監察本集團的整體風險管理，致力識別及監控已識別風險的影響，並促進協調緩解措施的落實執行。

審核委員會亦協助董事會進行有關維持足夠及有效之內部監控系統的檢討，當中涵蓋營運、財務、合規監控以及風險管理功能，以保障股東利益及本集團資產。

本公司的風險管理及內部監控制度旨在管理而非消除未能達致業務目標的風險，並僅能針對重大錯誤陳述或損失提供合理但非絕對的保證。

董事會將至少每年對本集團風險管理及內部監控制度（包括財務、營運及合規監控等）有效性作出檢討。

本集團並無設立內部審核部門。

經計及本集團業務的規模、性質及複雜程度，董事會備有足夠能力監察風險管理及內部監控制度的設計與實施，亦有足夠能力評估其有效性，因而無需即時在本集團內設立內部審核部門。

董事將每年檢討是否需要設立內部監控職能。

本公司已聘請外部顧問對本集團的內部監控及風險管理系統進行檢討。

在外部顧問的協助下，董事會對本集團內部監控系統之成效進行年度檢討，亦考慮本公司在會計及財務報告職能方面之資源、員工資歷及經驗是否足夠，以及員工所接受之培訓課程及有關預算是否充足。

除本公司因無心之失而未留意董事會報告「持續關連交易」一節所披露的持續關連交易超出符合最低豁免水平範圍外，董事會並未發現任何重大內部監控及風險管理缺陷，亦未發現重大違反限制或風險管理政策之情況，並認為現有內部監控系統及風險管理系統有效及足夠。

CORPORATEGOVERNANCEREPORT企業管治報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司34處理及發佈內幕消息的程序和內部監控措施本集團嚴格遵循香港法例第571章香港證券及期貨條例（「證券及期貨條例」）及上市規則的規定，並確保在合理可行情況下盡快向公眾披露內幕消息，除非有關消息屬於證券及期貨條例下任何安全港條文的範圍。

在向公眾全面披露內幕消息前，本集團會確保該消息絕對保密。

此外，本集團所採納的政策為僅向本集團內部合適員工披露相關消息。

董事就綜合財務報表承擔的責任董事知悉彼等負責編製本公司截至2023年12月31日止年度的綜合財務報表，並確保有關財務報表根據法定規定及適用會計準則編製。

董事亦須確保綜合財務報表及時發佈。

本公司外聘核數師對本公司綜合財務報表的申報責任的陳述載於本年報第68頁至第74頁的獨立核數師報告。

董事確認，據彼等所深知，經作出所有合理查詢後，彼等並不知悉任何可能促使本公司不會按持續基準經營的重大不確定因素的相關事宜或狀況。

因此，董事於編製綜合財務報表時繼續採納持續經營的基準。

PROCEDURESANDINTERNALCONTROLS FORTHEHANDLINGANDDISSEMINATIONOF INSIDEINFORMATIONThe Group strictly follows the requirements of the Securities and Futures Ordinance of (Chapter 571 of the Laws of Hong Kong) (the “SFO”) and the Listing Rules and ensures that inside information is disclosed to the public as soon as reasonably practicable unless the information falls within any of the safe harbours of the SFO. Before inside information is fully disclosed to the public, such information is kept strictly confidential. In addition, the Group adopted the policy of disclosing relevant information only to appropriate staff within the Group.DIRECTORS’ RESPONSIBILITYFORTHE CONSOLIDATEDFINANCIALSTATEMENTSThe Directors acknowledge their responsibilit ies for the preparation of the consolidated f inancial statements of the Company for the year ended 31 December 2023 and ensure that they are prepared in accordance with the statutory requirements and applicable accounting standards. The Directors also ensure the timely publication of the consolidated financial statements.The statement of the external auditor of the Company with regard to their repor ting responsibilit ies on the Company’s consolidated financial statements, is set out in the Independent Auditor’s Report on pages 68 to 74 of this annual report.The Directors confirm that, to the best of their knowledge, having made all reasonable enquiries, they are not aware of any material uncertainties relating to events or conditions which may cause the Company not to continue as a going concern. Therefore, the Directors continue to adopt the going concern approach in preparing the consolidated financial statements.CORPORATEGOVERNANCEREPORT企業管治報告35Annual Report 2023年報核數師酬金於截至2023年12月31日止年度，外聘核數師致同（香港）會計師事務所有限公司向本公司提供的服務及收取或應收的費用如下：應付高級管理人員的年度薪酬截至2023年12月31日止年度按範圍劃分的高級管理人員年度薪酬如下：根據上市規則附錄D2須予披露有關董事酬金及五名最高薪酬人士之進一步詳情載於綜合財務報表附註9。

AUDITOR’SREMUNERATIONDuring the year ended 31 December 2023, services provided to the Company by external auditor, Grant Thornton Hong Kong Limited, and the fees paid or payable were as follows:RMB'000人民幣千元Audit service for the year ended 31 December 2023截至2023年12月31日止年度的審核服務1,060Non-audit service非審核服務— Agreed-upon procedures engagement on interim financial information of the Group for the six months ended 30 June 2023—就本集團截至2023年6月30日止六個月的中期財務資料的協定委聘程序100 1,160 ANNUALREMUNERATIONPAYABLETOTHE MEMBERSOFSENIORMANAGEMENTThe annual remuneration of the members of the senior management by band for the year ended 31 December 2023 is as follows:Number of individualsRemuneration bands (HK$)薪酬範圍（港元）人員數目Nil – 1,000,000零至1,000,00021,000,001 – 1,500,0001,000,001至1,500,0001Further details of the Directors’ emoluments and five highest paid individuals required to be disclosed under Appendix D2 of the Listing Rules are set out in note 9 to the consolidated financial statements.CORPORATEGOVERNANCEREPORT企業管治報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司36投資者關係及通訊本公司已採納一項股東通訊政策，其中載列本公司利用多項機制向股東提供有效及高效率的通訊，其中包括(i)本公司的股份過戶登記處就股東的持股及相關事宜向彼等提供服務；(ii)年報、中期報告及通函等公司通訊備有中英文版本，並可於聯交所網站及本公司網站查閱；及(iii)股東大會為股東提供發表意見及與董事及高級管理層交換觀點的平台。

在股東週年大會上，董事會主席、董事會委員會主席或（倘彼等缺席）各委員會的其他成員亦會解答股東疑問。

本公司核數師亦將出席股東週年大會以回答有關進行審計工作、編製核數師報告及其內容、會計政策及核數師獨立性的問題。

本公司鼓勵股東出席股東大會，而董事亦一直致力全面回應股東於本公司股東週年大會及股東特別大會（「股東特別大會」）提出的任何問題。

此外，股東亦有權向本公司發出書面通知以提名任何人士在股東大會上參選董事一職。

本公司應屆股東週年大會將於2024年6月21日舉行，大會通告將根據組織章程細則、上市規則及其他適用法律法規寄發予股東。

截至2023年12月31日止年度，董事會已審閱股東通訊政策的實施及有效性。

董事會相信，股東的廣泛溝通渠道為股東及投資者提供有效獲取有關本集團資訊的渠道，且股東可通過以下程序直接聯繫董事會並主動反映意見，將彼等查詢轉至董事會。

因此，董事會認可股東通訊政策的有效性。

INVESTORRELATIONSANDCOMMUNICATIONThe Company has adopted the Shareholders’ Communication Policy, which sets out the Company’s use of a number of mechanisms to provide effective and efficient communication to shareholders, among which, (i) the share registrar of the Company serves the shareholders in respect of their shareholding and related matter; (ii) corporate communications such as annual reports, interim reports and circulars are provided in both English and Chinese versions and are available on the Stock Exchange’s website at and the Company’s website at ; and (iii) general meetings provide a forum for the shareholders to make comments and exchange views with the Directors and senior management. At the AGM, the Chairperson of the Board, the chairman of Board committees, or, in their absence, other members of each committee will also answer questions from shareholders. The auditor of the Company will also attend the annual general meeting to answer questions about the conduct of the audit, the preparation and content of the auditor's report, the accounting policies and auditor independence.The shareholders are encouraged to attend the general meetings of the Company and the Directors always make efforts to fully address any questions raised by the shareholders at the AGM and the extraordinary general meetings (the “EGM”) of the Company. In addition, the shareholders have the right to nominate a person to stand for election as a director at any general meeting by lodging a written notice to the Company.The forthcoming AGM of the Company will be held on 21 June 2024, the notice of which will be sent to the shareholders in accordance with the Articles of Association, the Listing Rules and other applicable laws and regulations.Dur ing the year ended 31 December 2023, the Board has reviewed the implementation and ef fectiveness of the shareholders’ Communication Policy. The Board believes that the diversified shareholders’ communication channels provide shareholders and investors with effective access to information about the Group, and that shareholders can contact the Board directly and express their opinions on their own initiative through the following procedures for directing shareholders’ enquiries to the Board. The Board, therefore, endorses the effectiveness of the Shareholders’ Communication Policy.CORPORATEGOVERNANCEREPORT企業管治報告37Annual Report 2023年報反貪污制度及舉報程序就本集團的反貪污政策及舉報程序，請參閱「環境、社會及管治報告」，同日於本公司網站()及聯交所網站()可供閱覽。

股東召開股東特別大會及於股東大會提程議案的程序股東可透過要求召開股東特別大會而在股東大會提呈議案。

根據組織章程細則第58條，股東特別大會可由董事會按任何一名或多名股東（彼等於提請要求當日持有本公司股東大會投票權不少於本公司繳足股本十分之一）的書面要求予以召開。

該要求須就要求董事會召開股東特別大會以處理該要求指定的任何事務，透過向董事會或公司秘書發出書面要求而作出。

該大會應於遞呈該要求後兩個月內舉行。

倘於遞呈後21日內，董事會未能召開該大會，則作出該要求人士可以同樣方式召開大會，而作出要求人士因董事會未能召開大會而合理產生的所有開支應由本公司向作出要求人士進行償付。

根據組織章程細則第85條，除非獲董事推薦參選，否則除會上退任董事外，概無任何人士符合資格於任何股東大會上參選董事，除非由正式符合資格出席大會並於會上表決的股東（並非擬參選人士）簽署通告，當中表明建議提名該人士參選的意向，並附上所提名人士簽署表示願意參選的通知，提交本公司香港主要營業地點（如下所示），而發出該等通知的期間最少須為七(7)天，而（若該等通知於寄發有關選舉所召開股東大會通告後遞交）該通知的提交期間於寄發召開有關選舉的股東大會通告翌日開始，亦不得遲於該股東大會舉行日期前七(7)日結束。

Anti-corruption system and whistle-blowing proceduresFor the Group’s ant i - co r rupt ion po l i cy and wh is t le -blowing procedures, please refer to “Environmental, Social and Governance Report” which is available on the websites of the Company () and of the Stock Exchange () on the even date.Procedures for Shareholders to Convene an Extraordinary General Meeting and to put forward proposals at general meetingsThe shareholders may put forward proposals at general meetings by requisitioning an EGM. Pursuant to article 58 of the Articles of Association, EGM may be convened by the Board on the requisition of one or more shareholders holding, at the date of deposit of the requisition, not less than one tenth of the paid-up capital of the Company having the right of voting at general meetings. Such requisition shall be made in writing to the Board or the Company Secretary for the purpose of requiring an EGM to be called by the Board for the transaction of any business specified in such requisition. Such meeting shall be held within two months after the deposit of such requisition. If within 21 days of such deposit, the Board fails to proceed to convene such meeting, the requisitionist(s) himself (themselves) may do so in the same manner, and all reasonable expenses incurred by the requisitionist(s) as a result of the failure of the Board shall be reimbursed to the requisitionist(s) by the Company.Pursuant to article 85 of the Articles of Association, no person other than a Director retiring at the meeting shall, unless recommended by the Directors for election, be eligible for election as a Director at any general meeting unless a notice signed by a shareholder (other than the person to be proposed) duly qualified to attend and vote at the meeting for which such notice is given of his intention to propose such person for election and also a notice signed by the person to be proposed of his willingness to be elected shall have been lodged at the Company’s principal place of business in Hong Kong (as shown below) provided that the minimum length of the period, during which such notice(s) are given, shall be at least seven (7) days and that (if the notices are submitted after the dispatch of the notice of the general meeting appointed for such election) the period for lodgement of such notice(s) shall commence on the day after the dispatch of the notice of the general meeting appointed for such election and end no later than seven (7) days prior to the date of such general meeting.CORPORATEGOVERNANCEREPORT企業管治報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司38向董事會轉達股東查詢的程序股東可隨時以書面形式向董事會提出查詢及關注事項。

聯絡詳情如下：環龍控股有限公司中國四川省成都市溫江區海峽兩岸科技產業開發園新華大道二段519號董事會定期檢討股東通訊政策，確保其行之有效，並反映與股東及投資者通訊的現行最佳慣例，並認為股東通訊政策屬有效及充分。

章程文件截至2023年12月31日止年度，本公司之章程文件概無任何變動。

本公司最新版本的組織章程大綱及細則可於本公司網站()及聯交所網站()閱覽。

Procedures for directing Shareholders’ enquiries to the BoardShareholders may at any time send their enquiries and concerns to the Board in writing. Contact details are as follows:Vanov Holdings Company Limited No.519, Section 2, Xinhua AvenueChengdu Strait Science and Technology Industry Development Park Wenjiang District Chengdu Sichuan Province, PRCThe Board regularly reviews shareholders' communication policy to ensure its implementation and ef fectiveness and to ref lect current best practices in communications with the shareholders and the investment community, and considers that the shareholders' communication policy is effective and adequate.CONSTITUTIONALDOCUMENTSDuring the year ended 31 December 2023, there were no changes in the Company’s constitutional documents. The latest version of the Company’s Memorandum and Articles is available on the websites of the Company () and of the Stock Exchange ().BIOGRAPHIESOFDIRECTORSANDSENIORMANAGEMENT董事及高級管理層履歷39Annual Report 2023年報執行董事沈根蓮女士，56歲，本公司主席、執行董事及提名委員會主席。

彼負責策略發展及就本集團的營運及管理提供意見。

沈女士亦為Lion Courage Enterprises Limited（「Lion Courage」）、環龍天和國際控股有限公司、賢途有限公司、億龍發展有限公司及四川環龍技術織物有限公司（「四川環龍」）各自的董事，該等公司為本公司附屬公司。

彼為周駿先生的配偶。

沈女士於1990年7月取得華東工學院（現稱為南京理工大學）機械工程（設備及測試系統）學士學位及於2000年12月完成西南財經大學企業管理學科專業研究生課程進修班課程。

沈女士於造紙毛毯製造業擁有逾21年經驗。

EXECUTIVEDIRECTORSMs. Shen Genlian (沈根蓮), aged 56, Chairperson, an executive Director and the chairperson of the Nomination Committee of the Company. She is responsible for strategic development and providing advice on the operation and management of the Group. Ms. Shen is also a director of each of Lion Courage Enterprises Limited (“Lion Courage”), Vanov Tianhe International Holdings Limited, Vir tuous Way Limited, Marvel Dragon Development Limited and Sichuan Huanlong Technology Fabric Co., Ltd.* (四川環龍技術織物有限公司) (“Sichuan Huanlong”), all of which being subsidiaries of the Company. She is the spouse of Mr. Zhou Jun. Ms. Shen obtained a Bachelor Degree in Mechanical Engineering (Instrumentation and Test System) from East China Institute of Technology* (華東工學院) (currently known as Nanjing University of Science and Technology* (南京理工大學)) in July 1990 and completed a study of Advanced Studies Course for Postgraduate in Business Administration (企業管理學科專業研究生課程進修班) at Southwestern University of Finance and Economics* (西南財經大學) in December 2000. Ms. Shen has more than 21 years’ experience in papermaking felts manufacturing industry.* for identification purposes onlyBIOGRAPHIESOFDIRECTORSANDSENIORMANAGEMENT董事及高級管理層履歷VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司40Mr. Zhou Jun (周駿), aged 60, chief executive officer of the Company, an executive Director and a member of the Remuneration Committee of the Company. He is responsible for overall management, strategic and major decisions on the development and daily operation of the Group. Mr. Zhou is also director of each of Lion Courage, Chengdu Huanlong Funeng Technology Co., Ltd* (成都環龍賦能科技有限公司) (“Huanlong Funeng”), Chengdu Huanlong Lixin Technology Co., Ltd.* (成都環龍立欣科技有限公司) (“Huanlong Lixin”), Sichuan Huanlong and Shanghai Jinxiong Paper Making Net Carpet Co., Ltd.* (上海金熊造紙網毯有限公司). He is the spouse of Ms. Shen Genlian. Mr. Zhou graduated from the Technical School of China Academy of Engineering Physics* (中國工程物理研究院技工學校) in July 1982 and completed a study of Advanced Studies Course for Postgraduate (In-service Programme) in Business Administration (企業管理研究生課程進修班（在職學習)) at the Business School of Sichuan University* (四川大學商學院) in July 2000. Mr. Zhou is a Vice President of the 6th Council of Sichuan Papermaking Industry Association* (四川省造紙行業協會第六屆理事會副會長), a Vice Chairman of the 6th Council of Sichuan Papermaking Industry Association* (四川省造紙行業協會第六屆理事會副理事長), a Vice Chairman of the 9th Council of Sichuan Province Papermaking Association* (四川省造紙學會第九屆理事會副理事長), a Standing Director of the 10th Council of Sichuan Textile Engineering Society* (四川省紡織工程學會第十屆理事會常務理事), a Standing Vice President of the 2nd Council of Sichuan Papermaking Industry Association Household Paper Branch* (四川省造紙行業協會生活用紙分會第二屆理事會常務副會長), an Individual Director of the 8th Council of China Technical Association of Paper Industry (中國造紙學會第八屆理事會個人理事) and was a Vice President of the 4th Council of China Nonwovens & Industrial Textiles Association* (中國產業用紡織品行業協會第四屆理事會副會長). Mr. Zhou has more than 22 years’ experience in papermaking felts manufacturing industry.* for identification purposes only周駿先生，60歲，本公司行政總裁、執行董事及薪酬委員會成員。

彼負責本集團的整體管理及就發展及日常營運作出策略性及重大決策。

周先生亦為Lion Courage、成都環龍賦能科技有限公司（「環龍賦能」）、成都環龍立欣科技有限公司（「環龍立欣」）、四川環龍及上海金熊造紙網毯有限公司各自的董事。

彼為沈根蓮女士的配偶。

周先生於1982年7月畢業於中國工程物理研究院技工學校，並於2000年7月在四川大學商學院完成企業管理研究生課程進修班（在職學習）課程。

周先生為四川省造紙行業協會第六屆理事會副會長、四川省造紙行業協會第六屆理事會副理事長、四川省造紙學會第九屆理事會副理事長、四川省紡織工程學會第十屆理事會常務理事、四川省造紙行業協會生活用紙分會第二屆理事會常務副會長、中國造紙學會第八屆理事會個人理事以及中國產業用紡織品行業協會第四屆理事會副會長。

周先生於造紙毛毯製造業擁有逾22年經驗。

BIOGRAPHIESOFDIRECTORSANDSENIORMANAGEMENT董事及高級管理層履歷41Annual Report 2023年報Mr. Xie Zongguo (謝宗國), aged 52, an executive Director of the Company. He is responsible for the overall daily operation and research and development management, and participating in decision-making in respect of major matters. Mr. Xie is also a director of Sichuan Huanlong. Mr. Xie obtained a Bachelor Degree in Textile Engineering from the Tianjin Textile Institute* (天津紡織工學院) (currently known as Tianjin Polytechnic University* (天津工業大學)) in July 1993. Mr. Xie has more than 21 years’ experience in papermaking felts manufacturing industry. He currently serves as general manager and director of Sichuan Huanlong. Mr. Xie is an individual director of the 8th Council of China Technical Association of Paper Industry (中國造紙學會第八屆理事會個人理事) and a technical expert of the PRC papermaking felt industry jointly awarded by the China Non-wovens & Industrial Textile Association, Papermaking Textile Branch* (中國產業用紡織品行業協會造紙用紡織品分會) and the Dewatering Equipment Profession Committee of China Technical Association of Paper Industry* (中國造紙學會脫水器材專業委員會).Ms. Yuan Aomei (袁傲梅), aged 43, an executive Director of the Company. She is responsible for providing advice on the operation and management. Ms. Yuan obtained a graduation certificate of Top-up Undergraduate Degree (專科升本科畢業證書) in Business Administration (part-time) from Southwestern University of Finance and Economics* (西南財經大學) in July 2010. Ms. Yuan has more than 13 years’ experience in business administration. Ms. Yuan joined Huanlong Industrial Group Co. Ltd.* (環龍工業集團有限公司) in August 2008 and worked as the director of its capital operations management centre* (資金運營管理中心總監) from 2014 to December 2020. She left Huanlong Industrial Group Co. Ltd.* (環龍工業集團有限公司) and joined Sichuan Huanlong as head of treasury since January 2021. Before joining the Group, Ms. Yuan worked as office manager of Chengdu Zhishan Tea Cultural Development Ltd.* (成都至善茶文化發展有限公司) from January 2007 to August 2008, and as capital representative* (資金外勤) of Chengdu Tianyou Development Ltd.* (成都天友發展有限公司) from January 2003 to December 2006.謝宗國先生，52歲，本公司執行董事。

彼負責整體日常營運與研發管理及參與有關重大事務的決策。

謝先生亦為四川環龍的董事。

謝先生於1993年7月取得天津紡織工學院（現稱為天津工業大學）的紡織工程學士學位。

謝先生於造紙毛毯製造業擁有逾21年經驗。

彼現時為四川環龍的總經理及董事。

謝先生為中國造紙學會第八屆理事會個人理事及中國產業用紡織品行業協會造紙用紡織品分會與中國造紙學會脫水器材專業委員會聯名頒授的中國造紙毛毯行業技術專家。

袁傲梅女士，43歲，本公司執行董事。

彼負責就營運及管理提供意見。

袁女士於2010年7月取得西南財經大學工商管理（兼讀）專科升本科畢業證書。

袁女士於工商管理方面擁有逾13年經驗。

袁女士自2008年8月起加入環龍工業集團有限公司，並於2014年至2020年12月擔任其資金運營管理中心總監。

她於2021年1月離開環龍工業集團有限公司並加入四川環龍。

加入本集團前，袁女士於2007年1月至2008年8月擔任成都至善茶文化發展有限公司的辦公室經理，並於2003年1月至2006年12月擔任成都天友發展有限公司的資金外勤。

* for identification purposes only.BIOGRAPHIESOFDIRECTORSANDSENIORMANAGEMENT董事及高級管理層履歷VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司42INDEPENDENTNON-EXECUTIVEDIRECTORSMr. Ip Wang Hoi (葉耘開), aged 48, an independent non-executive Director of the Company. He is also the chairman of the Remuneration Committee, and a member of each of the Audit Committee and the Nomination Committee of the Company. He is responsible for supervising and providing independent advice on the operation and management of the Group. Mr. Ip obtained his Bachelor of Business Administration in Accounting and Finance from the University of Hong Kong in December 1998 and Master of Business Administration from the University of Chicago Graduate School of Business in March 2008. Mr. Ip has been a member of Hong Kong Institute of Certif ied Public Accountants since September 2001 and a fellow of CPAAustralia since November 2020. Mr. Ip was designated as a Chartered Financial Analyst by the CFAInstitute in September 2005. Mr. Ip has more than 21 years’ experience in accounting, investment banking and corporate finance. Mr. Ip joined Arthur Andersen in September 1998 and was transferred to PricewaterhouseCoopers with effect from 1 July 2002. Mr. Ip left PricewaterhouseCoopers in April 2004 and his last position was a manager. Mr. Ip was employed by J.P. Morgan Securities (Asia Pacific) Limited from March 2011 to March 2016 and his last position was an executive director in the global investment banking department. Mr. Ip was employed by Tuspark Financial Holdings (HK) Limited from March 2017 to February 2020 and his last position was the chief executive officer of the corporate finance department — TUSCorporate Finance Limited. Mr. Ip has been the responsible officer of Wings Securities Limited since February 2020.Mr. Zhang Shenjin (張慎金), aged 53, an independent non-executive Director of the Company. He is also a member of each of the Audit Committee and the Remuneration Committee of the Company. He is responsible for supervising and providing independent advice on the operation and management of the Group. Mr. Zhang has over 15 years of experience in financial news reporting. Mr. Zhang worked for China Business Times Shandong Reporter Station* (中華工商時報山東記者站) from September 1992 to July 2006 and worked as reporter stationmaster* (記者站站長) from 1997. Mr. Zhang has served as the fourth secretary-general of China Paper and Pulp Industry Chamber of Commerce* (中華全國工商業聯合會紙業商會) since November 2017. Mr. Zhang obtained a graduation certificate of Junior College Program (專科畢業證書) in Chinese Language and Literature by correspondence education from Shandong Heze Education University* (山東省菏澤教育學院) (currently known as Heze University* (菏澤學院)) in June 1992.* for identification purposes only獨立非執行董事葉耘開先生，48歲，本公司獨立非執行董事。

彼亦為本公司薪酬委員會主席，以及審核委員會及提名委員會各自的成員。

彼負責監察及就本集團的營運及管理提供獨立意見。

葉先生於1998年12月取得香港大學工商管理學士（會計及財務）學位，並於2008年3月取得芝加哥大學商學院(University of Chicago Graduate School of Business)工商管理碩士學位。

葉先生自2001年9月起成為香港會計師公會會員，並自2020年11月起成為澳洲會計師公會資深會員。

葉先生於2005年9月獲特許財務分析師公會(CFAInstitute)認可為特許財務分析師。

葉先生於會計、投資銀行及企業融資方面擁有逾21年經驗。

葉先生於1998年9月加入安達信會計師事務所，於2002年7月1日調往羅兵咸永道會計師事務所。

葉先生於2004年4月離開羅兵咸永道會計師事務所，最後職位為經理。

葉先生於2011年3月至2016年3月受僱於J.P. Morgan Securities (Asia Pacific) Limited，最後職位為全球投資銀行部執行董事。

葉先生於2017年3月至2020年2月受僱於啟迪金融控股（香港）有限公司，最後職位為企業融資部— TUSCorporate Finance Limited行政總裁。

葉先生自2020年2月起擔任永時證券有限公司的負責人。

張慎金先生，53歲，本公司獨立非執行董事。

彼亦為本公司審核委員會及提名委員會各自的成員。

彼負責監察及就本集團的營運及管理提供獨立意見。

張先生於財經新聞報導方面擁有逾15年經驗。

張先生於1992年9月至2006年7月於中華工商時報山東記者站任職，自1997年起擔任記者站站長。

張先生自2017年11月起擔任中華全國工商業聯合會紙業商會第四任秘書長。

張先生於1992年6月透過函授教育取得山東省菏澤教育學院（現稱菏澤學院）的漢語語言文學專科畢業證書。

BIOGRAPHIESOFDIRECTORSANDSENIORMANAGEMENT董事及高級管理層履歷43Annual Report 2023年報Mr. Wang Yunchen (王運陳), aged 39, an independent non-executive Director of the Company. He is also the chairman of the Audit Commit tee and a member of the Nomination Committee of the Company. He is responsible for supervising and providing independent advice on the operation and management of the Group. Mr. Wang obtained a Bachelor Degree, a Master Degree and a Doctorate Degree in Financial Management from Southwestern University of Finance and Economics* (西南財經大學) in June 2007, March 2010 and December 2013, respectively. Mr. Wang was awarded the professorship of Account ing qualification issued by Sichuan Agricultural University (四川農業大學) in December 2020. Mr. Wang has been working for College of Management of Sichuan Agricultural University (四川農業大學) since January 2014 and serves as the head of its department of f inancial management. Mr. Wang currently serves as a postdoctoral researcher at the Postdoctoral Program Research Station of business administration* (工商管理博士後科研流動站) at Fudan University. Mr. Wang was awarded the third prize of the 18th Social Science Outstanding Achievement of Sichuan Province* (四川省第十八次社會科學優秀成果三等獎) in August 2019.Mr. Wang obtained a listed company senior management training* (上市公司高級管理人員培訓) graduation certificate issued by the Shenzhen Stock Exchange in March 2017. Mr. Wang has served as the independent director of Sichuan Dawn Precision Technology Co., Ltd., a company listed on the Shenzhen Stock Exchange (stock code: 300780) since September 2022. Mr. Wang served as an independent director of Sichuan Jinyu Automobile City (Group) Co., Ltd.* (四川金宇汽車城（集團）股份有限公司), a company listed on the Shenzhen Stock Exchange (stock code: 000803) from October 2019 to December 2019, an independent director of Chengdu Xingrong Environmental Co., Ltd.* (成都市興蓉環境股份有限公司), a company listed on the Shenzhen Stock Exchange (stock code: 000598) from April 2017 to August 2020 and an independent director of Sichuan Crun Co., Ltd.* (四川川潤股份有限公司), a company listed on the Shenzhen Stock Exchange (stock code: 002272) from August 2017 to March 2022.王運陳先生，39歲，本公司獨立非執行董事。

彼亦為本公司審核委員會主席及提名委員會成員。

彼負責監察及就本集團的營運及管理提供獨立意見。

王先生於2007年6月、2010年3月及2013年12月分別取得西南財經大學財務管理學士學位、碩士學位及博士學位。

王先生於2020年12月獲頒授四川農業大學發出的會計學教授資格。

王先生自2014年1月起一直在四川農業大學任職，並擔任其財務管理學系主管。

王先生目前於復旦大學工商管理博士後科研流動站擔任博士後研究員。

王先生於2019年8月獲頒四川省第十八次社會科學優秀成果三等獎。

王先生於2017年3月取得深圳證券交易所頒發的上市公司高級管理人員培訓畢業證書。

王先生自2022年9月擔任四川德恩精工科技股份有限公司（一間於深圳證券交易所上市的公司，股份代號：300780）的獨立董事。

王先生於2019年10月至2019年12月擔任四川金宇汽車城（集團）股份有限公司（一間於深圳證券交易所上市的公司，股份代號：000803）獨立董事、於2017年4月至2020年8月擔任成都市興蓉環境股份有限公司（一間於深圳證券交易所上市的公司，股份代號：000598）的獨立董事及於2017年8月至2022年3月擔任四川川潤股份有限公司（一間於深圳證券交易所上市的公司，股份代號：002272）的獨立董事。

* for identification purposes only.BIOGRAPHIESOFDIRECTORSANDSENIORMANAGEMENT董事及高級管理層履歷VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司44SENIORMANAGEMENTMr. Gao Qiang, aged 49, the sales director of the Group. He is responsible for the creation of sales strategies and the management of sales goals and targets. Mr. Gao has more than 21 years’ experience in sales and papermaking felts manufacturing industry. Before joining the Group, Mr. Gao has worked for Huanlong Industrial Group Co. Ltd.* (環龍工業集團有限公司) as sales manager since December 2001, responsible for the creation of sales strategies and the management of sales goals and targets. Mr. Gao left Huanlong Industrial Group Co. Ltd.* (環龍工業集團有限公司) and joined Sichuan Huanlong as sales manager in February 2007 and currently serves as the sales director of the Group. Mr. Gao obtained a graduation certificate of Junior College Program (專科畢業證書) in Textile Engineering issued by the Wuhan Textile Industry College* (武漢紡織工學院) (currently known as Wuhan Textile University* (武漢紡織大學)) in July 1998.Ms. Lin Xiaoyan, aged 42, the director of the operation department of the Group. She is responsible for the promotion of the operational efficiency and quality for the Group’s overall marketing. Ms. Lin has more than 15 years’ experience in corporate management and operation. She joined Sichuan Huanlong since its establishment in February 2007 and was promoted to operation director in April 2019. Ms. Lin obtained a graduation certificate of Junior College Program (專科畢業證書) in Industrial Enterprise Management jointly issued by the Southwestern University of Finance and Economics* (西南財經大學) and the Sichuan Province Higher Education Self-study Examination Committee* (四川省高等教育自學考試委員會) in December 1999 and a graduation certificate of Specialized Secondary School Program (普通中等專業學校畢業證書) in Pulp and Paper Making Process from the Sichuan Light Industry School* (四川省輕工業學校) in July 2000.Ms. Mak Po Man Cherie, aged 49, is the company secretary of the Company. Ms. Mak is the Vice President of SWCS Corporate Services Group (Hong Kong) Limited. She has worked for various professional firms and listed companies in Hong Kong, with over 18 years of experience in the fields of audit, accounting, corporate finance, compliance and corporate secretarial. Ms. Mak obtained a Master of Corporate Governance degree from The Hong Kong Polytechnic University in 2017. She has been admitted as an associate member of The Hong Kong Chartered Governance Institute and The Chartered Governance Institute in the United Kingdom in 2017, a member of the Hong Kong Institute of Certified Public Accountants in 2003, and a fellow member of the Association of Chartered Certified Accountants in 2006.高級管理層高強先生，49歲，本集團銷售總監。

彼負責制定銷售策略以及管理銷售目標及指標。

高先生於銷售及造紙毛毯製造業擁有逾21年經驗。

加入本集團前，高先生自2001年12月起於環龍工業集團有限公司擔任銷售經理，負責制定銷售策略以及管理銷售目標及指標。

高先生於2007年2月離開環龍工業集團有限公司並加入四川環龍擔任銷售經理，現時為銷售總監。

高先生於1998年7月取得武漢紡織工學院（現稱武漢紡織大學）的紡織工程專科畢業證書。

林曉燕女士，42歲，本集團運營部門總監。

彼負責提升本集團整體營銷的運營效率及質量。

林女士在企業管理及營運方面擁有逾15年經驗。

她於2007年2月四川環龍成立時加入，於2019年4月晉升為運營總監。

林女士於1999年12月取得西南財經大學及四川省高等教育自學考試委員會聯合頒發的工業企業管理專科畢業證書，並於2000年7月取得四川省輕工業學校紙漿及造紙過程普通中等專業學校畢業證書。

麥寶文女士，49歲，為本公司公司秘書。

麥女士為方圓企業服務集團（香港）有限公司的副總監。

彼曾在多家專業機構及香港上市公司工作，擁有逾18年工作經驗，範疇包括審計、會計、公司財務、合規及公司秘書。

麥女士於2017年獲香港理工大學公司管治碩士學位。

彼於2017年獲認可為香港特許公司治理公會及英國特許公司治理公會會士、於2003年獲認可為香港會計師公會會員及於2006年獲認可為英國特許公認會計師公會資深會員。

* for identification purposes only.DIRECTORS’ REPORT董事會報告45Annual Report 2023年報董事謹此提呈本公司及本集團截至2023年12月31日止年度的年報及經審核綜合財務報表。

主要業務本公司為投資控股公司。

主要附屬公司的主要業務刊載於綜合財務報表附註14。

業績及股息本集團截至2023年12月31日止年度的業績刊載於第75頁的綜合損益及其他全面收益表。

董事會已決議建議向於2024年7月2日（星期二）名列本公司股東名冊的股東派付截至2023年12月31日止年度的末期股息每股4港仙。

末期股息須經股東於2024年6月21日舉行的本公司股東週年大會上批准，如獲批准，將於2024年8月30日（星期五）或前後以現金方式派付。

概無本公司股東放棄或同意放棄任何股息的安排。

可供分派的儲備於2023年12月31日，本公司可供分派予股東的儲備乃股份溢價、實繳盈餘及保留溢利的總和，合共為人民幣73,520,000元。

五年財務概要本集團最近五個財政年度的業績和資產及負債摘要刊載於年報第168頁。

The Directors present their annual report and the audited consolidated financial statements of the Company and the Group for the year ended 31 December 2023.PRINCIPALACTIVITIESThe Company acts as an investment holding company. The principal activities of its principal subsidiaries are set out in note 14 to the consolidated financial statements.RESULTSANDDIVIDENDSThe results of the Group for the year ended 31 December 2023 are set out in the consolidated statement of profit or loss and other comprehensive income on .The Board has resolved to recommend the payment of a final dividend of 4 HK cents per share for the year ended 31 December 2023 to shareholders whose names appear on the register of members of the Company on Tuesday,2 July 2024. The final dividend is subject to the approval of the shareholders at the annual general meeting of the Company to be held on 21 June 2024, if approved, it will be paid in cash on or around Friday,30 August 2024.There is no arrangement that a shareholder of the Company has waived or agreed to waive any dividend.DISTRIBUTABLERESERVESAs at 31 December 2023, the Company’s reserves available for distribution to shareholders amounted to RMB73,520,000, represent ing the aggregat ion of the share premium, the contributed surplus and the retained profits.FIVE-YEARFINANCIALSUMMARYA summary of the results and the assets and liabilities of the Group for the last five financial years is set out on of the annual report.DIRECTORS’ REPORT董事會報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司46本集團所擁有的物業本集團於中國四川省成都市溫江區擁有物業作生產用途（「物業」）。

本集團於2023年12月31日所擁有的物業詳情載於第166頁。

投資物業物業的其中一間廠房於2021年12月5日以短期租賃出租予一名獨立第三方作投資用途。

有關本集團於年內的投資物業變動詳情載於綜合財務報表附註13。

有關本集團於2023年12月31日所持的主要投資物業詳情載於第167頁。

物業、廠房及設備於年內，本集團為擴展業務而購置物業、廠房及設備的成本約為人民幣196.1百萬元（2022年：人民幣89.8百萬元）。

有關本集團物業、廠房及設備於年內的變動詳情刊載於綜合財務報表附註12。

業務回顧有關本集團業務的公正審閱以及本集團業務的未來發展趨勢刊載於本年報「主席報告」及「管理層討論及分析」各節。

使用關鍵財務績效指標所作出的任何分析刊載於本年報「管理層討論及分析」一節，而主要風險及不確定因素則刊載於「財務報表附註」一節。

本集團所遵守且對本集團具重大影響的相關法律及法規已刊載於本年報各章節（特別是「企業管治報告」）。

有關本集團環境政策及表現的討論已單獨載於環境、社會及管治(ESG)報告內，有關報告將於年度報告日期同日在本集團網站「企業社會責任」一欄及聯交所網站可供閱覽。

上述各節構成本董事會報告內容的一部分。

PROPERTIESOWNEDBYTHEGROUPThe Group owns properties in Wenjiang District, Chengdu, Sichuen, the PRC for production (the “Properties”). Details of the Properties owned by the Group as at 31 December 2023 are set out on .INVESTMENTPROPERTYOne factory building of the Properties was on 5 December 2021 leased to an independent third party in a short term basis for investment purpose. Details of the movements in the investment property of the Group during the year are set out in note 13 to the consolidated financial statements. Details of the major investment property held by the Group as at 31 December 2023 are set out on .PROPERTY, PLANTANDEQUIPMENTDuring the year, the Group acquired property, plant and equipment at a cost of approximately RMB196.1 million (2022: RMB89.8 million) for the purpose of expanding its business. Details of the movements in the property, plant and equipment of the Group during the year are set out in note 12 to the consolidated financial statements.BUSINESSREVIEWA fair review of the Group’s business and indication of likely future development in the Group’s business are provided in the “Chairperson’s Statement” and “Management Discussion and Analysis” sections of this annual report. An analysis using key f inancial per formance indicators is set out in “Management Discussion and Analysis” section while the pr incipal r isks and uncertainties are contained in the “Notes to the Financial Statements” section of this annual repor t. Compliance with relevant laws and regulations that have a significant impact on the Group can be found throughout this annual report, in particular, the “Corporate Governance Report”. Discussions on the Group’s environmental polic ies and per formance are covered by a separate Environmental, Social and Governance (ESG) Report which will be available on the Company’s website under the “Corporate Social Responsibility” section and the website of the Stock Exchange on the same day of this annual report. The above sections form part of this Report of the Directors.DIRECTORS’ REPORT董事會報告47Annual Report 2023年報與持份者的主要關係本集團相信成功取決於主要持份者的支持，即僱員、客戶及供應商。

僱員本集團致力為僱員提供良好工作環境及具吸引力的薪酬待遇。

本集團向僱員提供的薪酬待遇包括薪金、津貼及繳付福利供款，其中包括社會保險供款及住房公積金供款。

本集團根據每名僱員的表現提供薪酬調升、花紅及晉升機會，以鼓勵僱員的個人發展。

本集團定期為僱員提供在職培訓，旨在為僱員建立穩固的事業基礎。

客戶本集團與客戶建立強大的關係。

本集團與客戶於整個生產過程緊密溝通及合作，以確保產品根據客戶的生產需求妥為設計及製造。

就鞏固與客戶的業務關係而言，本集團的銷售及營銷團隊定期到訪客戶的生產設施，以了解客戶的需求，緊貼客戶產品需求的最新發展及趨勢。

作為售後服務的一部分，本集團向客戶提供免費技術諮詢建議，分析其生產機器的表現，為客戶提供訂製造紙毛毯解決方案。

Key relationships with stakeholdersThe Group believes that its success depends on the support from its key stakeholders, namely employees, customers and suppliers.EmployeesThe Group endeavours to provide better working conditions and attractive remunerations to its employees. The Group offers remuneration package to its employees, which include salary, allowances and payment for welfare contributions, including social insurance contributions and housing provident fund contributions. Based on the performance of each employee, the Group will provide salary increments, bonuses and promotions, so as to encourage the employees’ personal developments. The Group provides regular on-the-job training to its employees in order to build up a sound career platform for employees.CustomersThe Group has developed strong relationships with its customers. The Group communicates and works closely with its customers during the entire production process to ensure that its products are properly designed and manufactured in accordance with the customers’ production needs. For the purpose of strengthening business relationships with customers, the Group’s sales and marketing teams will visit customers’ production facilities regularly to understand their needs and keep abreast of the latest development and trends of its customers’ products. As part of the Group’s after-sales service, it issues complimentary technical advisory proposals to the customers analysing the performance of their production machines, in order to provide tailor-made papermaking felts solutions to its customers.DIRECTORS’ REPORT董事會報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司48供應商本集團透過與主要供應商建立長期業務關係維持友好關係。

本集團審慎挑選原材料供應商，並設有獲批供應商名單。

獲批供應商乃基於多項因素而挑選，包括產品質量、供應能力、價格及結算方式。

本集團相信，與主要供應商的長期業務關係使本集團可獲得按照本集團及客戶要求的規格及時間所製造的原材料的穩定供應，而該等關係建基於多年來本集團與供應商合作建立的互信及信心。

儲備本集團及本公司儲備於年內的變動分別載於綜合權益變動表第78頁以及綜合財務報表附註29。

股本本公司股本於年內的變動詳情刊載於綜合財務報表附註28。

已發行債券截至2023年12月31日止年度，本公司概無發行或存續任何債券。

借款有關本集團截至2023年12月31日止年度的借款詳情刊載於綜合財務報表附註25及26。

SuppliersThe Group maintains good relationships with its key suppliers through the established long-term business relationships with them. The Group carefully selects its suppliers of raw materials and maintains a list of approved suppliers. The approved suppliers are selected based on a number of factors, including product quality, supply capacity, pricing and way of settlement. The Group believes that the established long-term business relationships with these key suppliers enables the Group to have a steady supply of raw materials which are manufactured according to the specifications and timing requested by it and its customers, and such relationships have been built upon a mutual trust and confidence over the years of cooperation between the Group and suppliers.RESERVESMovements during the year in the reserves of the Group and the Company are set out in the consolidated statement of changes in equity on and note 29 to the consolidated financial statements respectively.SHARECAPITALDetails of movements during the year in the share capital of the Company are set out in note 28 to the consolidated financial statements.BONDSISSUEDThe Company did not have any bonds in issue or existence for the year ended 31 December 2023.BORROWINGSDetails of borrowings of the Group during the year ended 31 December 2023 are set out in notes 25 and 26 to the consolidated financial statements.DIRECTORS’ REPORT董事會報告49Annual Report 2023年報稅項有關本公司及本集團於2023年的稅項資料刊載於綜合財務報表附註8。

董事及董事的服務合約於年內直至本報告日期的董事如下：執行董事沈根蓮女士（主席）周駿先生（行政總裁）謝宗國先生袁傲梅女士獨立非執行董事葉耘開先生張慎金先生王運陳先生董事履歷詳情刊載於本年報第39頁至43頁。

各董事已與本公司訂立服務合約（「董事服務合約」），任期由2022年6月22日起為期三年，任何一方均可發出不少於三個月的書面通知終止合約。

所有董事，包括獨立非執行董事均須根據組織章程細則於本公司股東週年大會上輪值告退。

TAXATIONThe information on the taxation of the Company and the Group in 2023 is set out in note 8 to the consolidated financial statements.DIRECTORSANDDIRECTORS’ SERVICE CONTRACTSThe Directors during the year and up to the date of this reportwere:Executive DirectorsMs. Shen Genlian (Chairperson)Mr. Zhou Jun (Chief executive officer) Mr. Xie ZongguoMs. Yuan AomeiIndependent non-executive DirectorsMr. Ip Wang HoiMr. Zhang ShenjinMr. Wang YunchenThe biographical details of the Directors are set out on page 39 to of this annual report.Each of the Directors has entered into a service contract (“Directors’ service Contract(s)”) with the Company for a term of three years commencing from 22 June 2022 which is subject to termination by either party giving not less than three month’s written notice. All the Directors, including the independent non-executive Directors, are subject to retirement by rotation at the annual general meetings of the Company pursuant to the Articles of Association.DIRECTORS’ REPORT董事會報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司50根據章程細則第84(1)條之規定，儘管細則有任何其他規定，於每屆股東週年大會上，當時為數三分之一的董事（或如董事人數並非三(3)的倍數，則須為最接近但不少於三分之一之數目）須輪值退任，而每位董事須每三年至少在股東週年大會上輪值退任一次。

根據章程細則第84(2)條規定，退任董事有資格膺選連任及於其退任的整個大會上繼續以董事身份行事。

輪流退任的董事須包括（就釐定輪流退任董事的人數而言屬必要）有意退任且不願膺選連任的任何董事。

任何其他須如此卸任的董事須為自其上次再當選或獲委任起計，任期最長而須輪換卸任的董事，而對於同日獲委任或上次再當選的董事，則以抽籤決定退任人選（除非彼等就此自行達成協議）。

在決定輪席退任的特定董事或董事數目時，任何根據本細則第83(3)條獲董事會委任的董事不應被考慮內。

因此，袁傲梅女士、張慎金先生及王運陳先生將於應屆股東週年大會上輪值告退並合資格膺選連任。

擬於應屆股東週年大會上膺選連任的董事概無與本公司訂立服務合約，禁止本公司於一年內終止合約而毋須作出賠償（法定賠償除外）。

Pursuant to Ar ticle 84(1) of the Ar ticles of Association, notwithstanding any other provisions in the Articles, at each annual general meeting one-third of the Directors for the time being (or, if their number is not a multiple of three (3), the number nearest to but not less than one-third) shall retire from office by rotation provided that every Director shall be subject to retirement at an annual general meeting at least once every three years.Pursuant to Ar ticle 84(2) of the Articles of Association, a retiring Director shall be eligible for re-election and shall continue to act as a Director throughout the meeting at which he retires. The Directors to retire by rotation shall include (so far as necessary to ascertain the number of directors to retire by rotation) any Director who wishes to retire and not to offer himself for re-election. Any further Directors so to retire shall be those of the other Directors subject to retirement by rotation who have been longest in office since their last re-election or appointment and so that as between persons who became or were last re-elected Directors on the same day those to retire shall (unless they otherwise agree among themselves) be determined by lot. Any Director appointed by the Board pursuant to Article 83(3) shall not be taken into account in determining which particular Directors or the number of Directors who are to retire by rotation.Accordingly, Ms. Yuan Aomei, Mr. Zhang Shenjin and Mr. Wang Yunchen will retire by rotation at the forthcoming AGM and, being eligible, offer themselves for re-election.No director proposed for re-election at the for thcoming AGM has a service contract with the Company which is not determinable by the Company within one year without payment of compensation, other than statutory compensation.DIRECTORS’ REPORT董事會報告51Annual Report 2023年報董事及最高行政人員的資料變動根據第13.51B(1)條規定，有關董事及最高行政人員的所有資料變動及更新刊載於「董事及高級管理層的履歷」一節。

除上文所披露者外，概無任何資料變動須根據第13.51(2)(a)條至(e)條和(g)條規定予以披露。

董事薪酬及五名最高薪酬人士有關年內董事薪酬及五名最高薪酬人士的詳情刊載於綜合財務報表附註9。

獲准許的彌償根據組織章程細則，董事按各自的職務執行其職責（或假定職責）時因所作出、同意或遺漏的任何作為而招致或蒙受的所有訴訟、費用、收費、損失、損害及開支，均可獲本公司的資產及溢利給予補償，並確保其免受損失。

有關條款於回顧年度生效，且截至本報告日期仍然生效。

CHANGESINDIRECTORS’ ORCHIEF EXECUTIVES’ INFORMATIONPursuant to Rule 13.51B(1), a l l change and updated information regarding the Directors and chief executive are set out in the section headed “Biographies of Directors and Senior Management”. Save as disclosed in the above section, there was no change to any of the information required to be disclosed pursuant to Rule 13.51(2)(a) to (e) and (g).DIRECTORS’ REMUNERATIONANDFIVE HIGHESTPAIDINDIVIDUALSDetails of the Directors’ remuneration and five highest paid individuals during the year are set out in note 9 to the consolidated financial statements.PERMITTEDINDEMNITYThe Articles of Association provide that the Directors shall be indemnified and secured harmless out of the assets and profits of the Company from and against all actions, costs, charges, losses, damages and expenses which they shall or may incur or sustain by or by reason of any act done, concurred in or omitted in or about the execution of their duty, or supposed duty, in their respective off ices. Such provisions were in force during the course of the year under review and remained in force as of the date of this report.DIRECTORS’ REPORT董事會報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司52董事於股份、相關股份及債權證中的權益及淡倉於2023年12月31日，本公司各董事於本公司或其任何相聯法團（定義見證券及期貨條例第XV部）的股份、相關股份及債權證中，擁有根據證券及期貨條例第XV部第7及8分部須知會本公司及聯交所的權益及淡倉，或根據證券及期貨條例第352條須記錄於登記冊內的權益及淡倉，或根據標準守則須知會本公司及聯交所的權益及淡倉如下：(i)於股份中的好倉附註： Perfect Angle Limited（「Perfect Angle」）及Wonder fu l Adv iso r L im i ted（「Wonder fu l Advisor」）持有269,960,400股及89,986,800股股份。

Perfect Angle及Wonderful Advisor各自分別由Vistra Trust (Singapore) Pte. Limited （「Vistra Trust」）直接全資擁有，Vistra Trust為SGLTrust及ZJTrust的受託人。

SGLTrust為譽致有限公司（「譽致」）成立的不可撤銷全權信託，譽致為沈根蓮女士作為財產授予人全資擁有。

SGLTrust的受益人為沈根蓮女士以及沈根蓮女士的子女。

ZJTrust為南源企業有限公司（「南源」）成立的不可撤銷全權信託，南源由周駿先生作為財產授予人全資擁有。

ZJTrust的受益人為周駿先生以及沈根蓮女士的子女。

沈根蓮女士及周駿先生為夫婦。

因此，根據證券及期貨條例，沈根蓮女士及周駿先生各自被視為於上述269,960,400股及89,986,800股股份（合共359,947,200股股份）中擁有權益。

DIRECTORS’ INTERESTSANDSHORT POSITIONSINSHARES, UNDERLYING SHARESANDDEBENTURESAs at 31 December 2023, the interests and short positions of each Director and chief executive of the Company in the Shares, underlying shares and debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) as recorded in the register which have to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO or are required to be kept under Section 352 of the SFO or required to be notified to the Company and the Stock Exchange pursuant to the Model Code were as follows:(i) Long positions in the SharesName of Director Capacity/NatureNumber of Shares held/interested inApproximate percentage of interest in the Company董事姓名身份╱性質持有╱擁有權益的股份數目於本公司權益的概約百分比Ms. Shen Genlian (Note) Founder of a discretionary trust; interest of spouse359,947,20074.46%沈根蓮女士（附註）全權信託創立人；配偶權益Mr. Zhou Jun (Note) Founder of a discretionary trust; interest of spouse359,947,20074.46%周駿先生（附註）全權信託創立人；配偶權益Note: Per fect Angle Limited (“Perfect Angle”) and Wonder ful Adv iso r L im i ted ( “ Wonder fu l Advisor ” ) a re ho ld ing 269,960,400 and 89,986,800 Shares. Each of Perfect Angle and Wonderful Advisor is directly and wholly owned by Vistra Trust (Singapore) Pte. Limited (“Vistra Trust”), the trustee of the SGLTrust and the ZJTrust. The SGLTrust is an irrevocable discretionary trust established by Fame Attain Limited (“Fame Attain”), which is wholly-owned by Ms. Shen Genlian, as the settlor. The beneficiaries of the SGL Trust are Ms. Shen Genlian and the children of Ms. Shen Genlian. The ZJTrust is an irrevocable discretionary trust established by South Source Enterprises Limited (“South Source”), which is wholly-owned by Mr. Zhou Jun, as the settlor. The beneficiaries of the ZJTrust are Mr. Zhou Jun and the children of Ms. Shen Genlian. Ms. Shen Genlian and Mr. Zhou Jun are wife and husband. Accordingly, each of Ms. Shen Genlian and Mr. Zhou Jun is deemed to be interested in the said 269,960,400 and 89,986,800 Shares (in aggregate 359,947,200 Shares) under the SFO.DIRECTORS’ REPORT董事會報告53Annual Report 2023年報(ii) Long position in the ordinary shares of associated corporationsName of DirectorName of associated corporation Capacity/NatureNumber of Shares or registered capital held/interested inApproximate percentage of interest董事姓名相聯法團名稱身份╱性質持有╱擁有權益的股份或註冊資本數目權益概約百分比Ms. Shen Genlian (Note1) Perfect Angle Founder of a discretionary trust100100%沈根蓮女士（附註1）全權信託創立人Mr. Zhou Jun (Note1) Perfect Angle Interest of spouse 100100%周駿先生（附註1）配偶權益Ms. Shen Genlian (Note2) Huanlong Lixin Interest in a controlled corporation/interest of spouseRMB10,0001%沈根蓮女士（附註2）環龍立欣於受控法團的權益╱配偶權益人民幣10,000元Mr. Zhou Jun (Note2) Huanlong Lixin Interest of spouse RMB10,0001%周駿先生（附註2）環龍立欣配偶權益人民幣10,000元Notes:1. Perfect Angle is holding 269,960,400 Shares. Perfect Angle is directly and wholly owned by Vistra Trust, the trustee of the SGLTrust. The SGLTrust is an irrevocable discretionary trust established by Fame Attain, which is wholly-owned by Ms. Shen Genlian, as the settlor. The beneficiaries of the SGLTrust are Ms. Shen Genlian and the children of Ms. Shen Genlian. Ms. Shen Genlian and Mr. Zhou Jun are wife and husband. Accordingly, Per fect Angle is a holding company and an associated corporation of the Company, and each of Ms. Shen Genlian and Mr. Zhou Jun is deemed to be interested in the said shares of the associated corporation under the SFO.2. Huanlong Lixin is an indirect non-wholly owned subsidiary of the Company, the equity interest of which is held as to 99% by Huanlong Funeng, a wholly-owned subsidiary of the Company and 1% by Huanlong Industrial Group Co., Ltd* (環龍工業集團有限公司), respectively. Huanlong Industrial Group Co., Ltd* (環龍工業集團有限公司) is held as to 75% by Ms. Shen Genlian and 25% by Mr. Zhou, respectively. Ms. Shen Genlian and Mr. Zhou Jun are wife and husband. Accordingly, Huanlong Lixin is an associated corporation of the Company, and each of Ms. Shen Genlian and Mr. Zhou Jun is deemed to be interested in the equity interest of the associated corporation under the SFO.(ii)於相聯法團普通股中的好倉附註：1. Perfect Angle持有269,960,400股股份。

Perfect Angle由Vistra Trust（SGLTrust的受託人）直接全資擁有。

SGLTrust為譽致成立的不可撤銷全權信託，譽致由沈根蓮女士作為財產授予人全資擁有。

SGLTrust的受益人為沈根蓮女士以及沈根蓮女士的子女。

沈根蓮女士及周駿先生為夫婦。

因此，根據證券及期貨條例，Perfect Angle為本公司的控股公司及相聯法團，且沈根蓮女士及周駿先生各自被視為於上述相聯法團股份中擁有權益。

2.環龍立欣為本公司的間接非全資附屬公司，其股權分別由本公司的全資附屬公司環龍賦能持有99%及由環龍工業集團有限公司持有1%。

環龍工業集團有限公司分別由沈根蓮女士持有75%及由周駿先生持有25%。

沈根蓮女士及周駿先生為夫婦。

因此，根據證券及期貨條例，環龍立欣為本公司的相聯法團，且沈根蓮女士及周駿先生各自被視為於相聯法團股權中擁有權益。

DIRECTORS’ REPORT董事會報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司54除上文所披露者外，於2023年12月31日，本公司概無董事、最高行政人員或彼等各自的緊密聯繫人於本公司或其任何相聯法團的股份、相關股份及債權證中，擁有根據證券及期貨條例第352條須記錄於登記冊內的任何權益及淡倉，或根據證券及期貨條例第XV部第7及8分部或根據標準守則須知會本公司及聯交所的權益及淡倉。

*僅供識別。

權益掛鈎協議有關於回顧年度內訂立或於回顧年末仍存續的權益掛鈎協議詳情刊載如下：購股權計劃於2021年12月9日，股東批准並採納購股權計劃（「購股權計劃」）。

據此，任何合資格參與者（定義見下文）可根據購股權計劃所訂明的條款及條件，獲授予購股權以認購股份。

本公司已採納購股權計劃以獎勵董事及合資格參與者。

Save as disclosed in the foregoing, as at 31 December 2023, none of the Directors or chief executive of the Company or their respective close associates had any interests or short positions in any Shares, underlying shares or debentures of the Company or any of its associated corporations as recorded in the register required to be kept pursuant to Section 352 of the SFO or as otherwise notif ied to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO or pursuant to the Model Code.* for identification purposes only.EQUITY-LINKEDAGREEMENTSDetails of the equity-linked agreements entered into during the year under review or subsisting at the end of the year under review are set out below:Share Option SchemeOn 9 Dec ember 2021, a share opt i on scheme (the “Share Option Scheme”) was approved and adopted by the shareholders, under which, options may be granted to any Eligible Participants (as defined below) to subscribe for the Shares subject to the terms and conditions stipulated in the Share Option Scheme. The Company has adopted the Share Option Scheme as an incentive to the Directors and the Eligible Participants.DIRECTORS’ REPORT董事會報告55Annual Report 2023年報The Share Opt ion Scheme w i l l p rov ide the El ig ib le Participants an opportunity to have a personal stake in the Company with the view to achieving the following objectives: (i) motivating the Eligible Participants to optimise their performance efficiency for the benefit of the Group; and (ii) attracting and retaining or otherwise maintaining on-going business relationships with the Eligible Participants whose contributions are or will be beneficial to the long-term growth of the Group.The Board may, at its discretion, offer to grant an option to subscribe for such number of new Shares as the Board may determine to the following persons (the “Eligible Participants”): (i) any full-time or part-time employee of any member of the Group; (ii) any consultant or adviser of any member of the Group; (iii) any Director (including executive, non-executive or independent non-executive Directors) of any member of the Group; (iv) any substantial shareholder of any member of the Group; and (v) any distributor, contractor, supplier, agent, customer, business partner or service provider of any member of the Group. The basis of eligibility of any participant to the grant of any option shall be determined by the Board (or as the case may be, where required under the Listing Rules, the independent non-executive Directors) from time to time on the basis of the participant’s contribution or potential contribution to the development and growth of the Group.The maximum number of Shares which may be issued upon exercise of all options (excluding, for this purpose, options which have lapsed in accordance with the terms of the Share Option Scheme and any other share option scheme of the Company) to be granted under the Share Option Scheme and any other share option scheme of the Company must not in aggregate exceed 48,000,000 Shares, being 9.93% of the total number of the Shares in issue as at the date of this annual report.The total number of Shares issued and which may fall to be issued upon exercise of the options granted under the Share Option Scheme and any other scheme of the Company (including both exercised and outstanding options) to each participant in any 12-month period shall not exceed 1% of the total number of the Shares in issue for the time being. Any further grant of options in excess of the 1% limit shall be subject to the shareholders’ approval in general meeting with such par t ic ipant and his associates abstaining from voting.購股權計劃將讓合資格參與者有機會於本公司擁有個人權益，並旨在達成以下目標：(i)鼓勵合資格參與者為本集團的利益而提高其表現效率；及(ii)吸引並挽留合資格參與者或以其他方式與合資格參與者維持長久的業務關係，而該合資格參與者的貢獻乃對或將會對本集團的長遠發展有利。

董事會可酌情決定向以下人士（「合資格參與者」）授出購股權，按董事會釐定的新股份數目作出認購：(i)本集團任何成員公司的全職或兼職僱員；(ii)本集團任何成員公司的諮詢人或顧問；(iii)本集團任何成員公司的董事（包括執行董事、非執行董事或獨立非執行董事）；(iv)本集團任何成員公司的主要股東；及(v)本集團任何成員公司的分銷商、承包商、供應商、代理、客戶、業務夥伴或服務供應商。

董事會（或視乎情況根據上市規則規定為獨立非執行董事）將不時根據參與者對本集團的發展及增長所作出或可能作出的貢獻，決定該參與者是否合資格獲授予購股權。

根據本公司購股權計劃及任何其他購股權計劃授出的所有購股權（就此而言，不包括根據本公司購股權計劃及任何其他購股權計劃的條款已失效的購股權），於行使時可獲發行的股份數目上限合共不得超出48,000,000股股份（即於本年報日期已發行股份總數的9.93%）。

於任何12個月期間，根據本公司購股權計劃及任何其他購股權計劃授予各參與者的購股權（包括已行使及尚未行使的購股權）獲行使時，已發行及將會發行的股份總數不得超過當時已發行股份總數的1%。

額外授出任何超過1%上限的購股權須經股東於股東大會上批准，且有關參與者及其緊密聯繫人須於會上放棄投票。

DIRECTORS’ REPORT董事會報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司56An offer for the grant of option must be accepted within seven days from the offer date. Options granted shall be taken up upon payment of HK$1.00 as consideration for the grant of option. Options may be exercised at any time from the date which option is deemed to be granted and accepted and expired on the date as the Board in its absolute discretion determine and which shall not exceed a period of 10 years from the date on which the share options are deemed to be granted and accepted but subject to the provisions for early termination thereof contained in the Share Option Scheme.The subscription price for the Shares under the Share Option Scheme shall be determined by the Board and shall not be less than the highest of: (i) the closing price of the Shares as stated in the Stock Exchange’s daily quotation sheets on the date of grant, which must be a day on which the Stock Exchange is open for the business of dealing in securities; (ii) the average of the closing prices of the Shares as stated in the Stock Exchange’s daily quotation sheets for the five business days immediately preceding the date of grant; and (iii) the nominal value of a Share.The Share Option Scheme shall be valid and effective for a period of 10 years commencing from 9 December 2021. As at 31 December 2023, the remaining life of the Share Option Scheme is approximately 7 years and 11 months. No share option has been granted by the Company under the Share Option Scheme since its adoption up to the date of this annual report. As at the date of this annual report, the total number of Shares available for issue under the Share Option Scheme was 48,000,000, representing approximately 9.93% of the issued Shares as at the date of this annual report.Other than the Share Option Scheme, no equity- linked agreements were entered into by the Company during the year ended 31 December 2023 or subsisting at the end of the year.RETIREMENTBENEFITPLANSDetails of retirement benefit plans of the Group during the year under review are set out in note 2.20 to the consolidated financial statements.授出購股權的要約須於要約日期起計七日內接納。

已授出的購股權須於支付1.00港元作為授出購股權的代價後方告接納。

購股權可自購股權被視為已授出及接納的日期起隨時行使，並於董事會全權酌情釐定的日期屆滿，惟不得超過購股權被視為授出及接納的日期起計10年的期限，但可根據購股權計劃所載條文予以提早終止。

購股權計劃下的普通股認購價將由董事會釐定，且不得低於下列各項中的最高者：(i)股份於授出日期（須為聯交所開市買賣證券的日子）在聯交所每日報價表所示的收市價；(ii)緊接授出日期前五個營業日股份在聯交所每日報價表所示的平均收市價；及(iii)股份面值。

購股權計劃自2021年12月9日起10年內生效及有效。

於2023年12月31日，購股權計劃的餘下年期約為7年11個月。

自採納購股權計劃起直至本年報日期，本公司概無授出任何購股權。

於本年報日期，根據購股權計劃可供發行的股份總數為48,000,000股，約佔本年報日期已發行股份的9.93%。

除購股權計劃外，本公司概無於2023年12月31日止年度內訂立或於年末存續其他權益掛鈎協議。

退休福利計劃本集團於回顧年度的退休福利計劃詳情載於綜合財務報表附註2.20。

DIRECTORS’ REPORT董事會報告57Annual Report 2023年報主要股東於本公司股份及相關股份中的權益及淡倉於2023年12月31日，據董事所知，以下人士（本公司董事或最高行政人員除外）於本公司的股份及相關股份中擁有的權益及淡倉，須根據證券及期貨條例第336條記錄於備存登記冊內，及須根據證券及期貨條例第XV部第2及3分部向本公司作出披露：附註： Vistra Trust為SGLTrust及ZJTrust的受託人，並持有Perfect Angle及Wonderful Advisor 100%的已發行股本，因此，根據證券及期貨條例，Vistra Trust被視為於Perfect Angle及Wonderful Advisor持有的所有股份中擁有權益。

股份或債權證的收購安排除上文「購股權計劃」一節所披露的購股權計劃外，本公司、其控股公司，或任何附屬公司或同系附屬公司概無於回顧年度任何時間參與訂立任何安排，致使董事可藉由收購本公司或任何其他法人團體的股份或債務證券（包括債權證）而獲益。

INTERESTSANDSHORTPOSITIONSOFTHE SUBSTANTIALSHAREHOLDERSINSHARES ANDUNDERLYINGSHARESOFTHECOMPANYAs at 31 December 2023, so far as the Directors are aware, the interest and short positions of the persons, other than a Director or chief executive of the Company, in the Shares and underlying shares of the Company as recorded in the register required to be kept under section 336 of the SFO and which fell to be disclosed to the Company under Divisions 2 and 3 of Part XV of the SFO are as follows:Name Capacity/NatureNumber of Shares held/interested inApproximate percentage of interest姓名╱名稱身份╱性質持有╱擁有權益的股份數目權益概約百分比Perfect Angle Beneficial owner 269,960,40055.84%實益擁有人Wonderful Advisor Beneficial owner 89,986,80018.61%實益擁有人Vistra Trust (Note)（附註） Trustee 359,947,20074.46%受託人Note: Vistra Trust is the trustee of the SGLTrust and ZJTrust and holds 100% issued share capital of both Perfect Angle and Wonderful Advisor, thus Vistra Trust is deemed to be interested in all the Shares held by Per fect Angle and Wonder ful Advisor for the purpose of the SFO.ARRANGEMENTSTOPURCHASESHARESOR DEBENTURESSave for the Share Option Scheme as disclosed under the section headed “Share Option Scheme” above, at no time during the year under review was the Company, its holding company, or any of its subsidiaries or fellow subsidiaries, a par ty to any arrangements to enable the Directors to acquire benefits by means of the acquisition of shares in, or debts securities (including debentures) of, the Company or any other body corporate.DIRECTORS’ REPORT董事會報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司58企業管治本集團致力維持高水準的企業管治。

有關本公司企業管治措施的詳情刊載於本年報第19至38頁的企業管治報告。

委任獨立非執行董事本公司已接獲各獨立非執行董事根據上市規則第3.13條就其獨立性發出的年度書面確認。

本公司認為所有獨立非執行董事均屬獨立人士。

董事於重大交易、安排或合約中的權益除綜合財務報表附註34及下文「持續關連交易」一節所披露的關聯方交易外，截至2023年12月31日止年度內任何時間，本公司或其任何附屬公司概無签订對本集團業務而言屬重大的其他交易、安排及合約，亦無董事或其關連實體於其他交易、安排及合約中直接或間接擁有重大權益。

管理合約除僱傭合約外，截至2023年12月31日止年度，概無訂立或存在任何涉及本公司整體或任何重大部分業務的管理及行政合約。

CORPORATEGOVERNANCEThe Group is committed to maintaining a high level of corporate governance. Particulars of the Company’s corporate governance practices are set out in the Corporate Governance Report on pages 19 to 38 of this annual report.APPOINTMENTOFINDEPENDENT NON-EXECUTIVEDIRECTORSThe Company has received, from each of the independent non - execut ive D i rec to rs , an annua l conf i rmat ion o f h is independence pursuant to Rule 3.13 of the Listing Rules. The Company considers all of the independent non-executive Directors are independent.DIRECTORS’ INTERESTSINTRANSACTIONS, ARRANGEMENTSORCONTRACTSOF SIGNIFICANCESave as the related party transactions as disclosed in note 34 to the consolidated financial statements and section headed “Continuing Connected Transactions” below, there were no other transactions, arrangements or contracts that are significant in relation to the business of the Group to which the Company or any of its subsidiary was a party and in which a Director or his/her connected entity had a material interest, whether directly or indirectly, subsisted at any time during the year ended 31 December 2023.MANAGEMENTCONTRACTSSave for employment contracts, no other contracts concerning the management and administ rat ion of the whole or any substantial part of the business of the Company were entered into or existed during the year ended 31 December 2023.DIRECTORS’ REPORT董事會報告59Annual Report 2023年報COMPETINGINTERESTApart from the Group's business, none of the Director, the Controlling Shareholders or any of their respective close associates was engaged in or had any interest in any business that competes or may compete with the principal business of the Group, which would require disclosure under Rule 8.10 of the Listing Rules, or has any other conflict of interest with the Group during the year ended 31 December 2023 and up to the date of this annual report.DEEDOFNON-COMPETITIONMs. Shen Genlian and Mr. Zhou Jun (the “Covenantors”) ente red in to a deed o f non - compet i t i on (the “ Deed of Non-Competition”) on 9 December 2021 in favour of the Company (for itself and for the benefit of each other member of the Group), pursuant to that they will not directly or indirectly participate in, or hold any right or interest, or otherwise be involved in any business which may be in competition with the business of the Group during the period that the Deed of Non-Competition remains effective.The Company has rece ived the annual conf i rmat ion of the Covenantors in respect of their compliance with the non-competition undertakings under the Deed of Non-Competition during the year ended 31 December 2023.The independent non-executive Directors also reviewed the Covenantors’ compliance with the non-competition undertakings. The independent non-execut ive Direc tors conf i rmed that the Covenantors were not in breach of the non-competition undertakings during 31 December 2023.PURCHASE, SALEORREDEMPTIONOF SECURITIESNeither the Company nor any of its subsidiaries purchased, sold or redeemed any of the Company’s listed securities for the year ended 31 December 2023.競爭權益截至2023年12月31日止年度及直至本年報日期，除本集團業務外，董事、控股股東或彼等各自的緊密聯繫人並無從事與本集團主要業務構成競爭或可能構成競爭的業務，或在當中擁有權益，而導致須根據上市規則第8.10條作出披露，亦無與本集團存在其他利益衝突。

不競爭契據於2021年12月9日，沈根蓮女士及周駿先生（「契諾人」）以本公司為受益人（為其本身及本集團各間其他成員公司的利益）訂立不競爭契據（「不競爭契據」）。

據此，於不競爭契據生效期間，彼等不會直接或間接從事任何業務活動，從而或會與本集團的業務構成競爭，或於當中持有任何權利或權益，或以其他方式涉及其中。

截至2023年12月31日止年度，本公司已收取契諾人根據不競爭契據遵守不競爭承諾的年度確認。

獨立非執行董事亦已就契諾人有否遵守不競爭承諾作出審查。

獨立非執行董事確認，契諾人於2023年12月31日期間並無違反不競爭承諾。

購買、出售或贖回證券截至2023年12月31日止年度，本公司或其任何附屬公司並無購買、出售或贖回本公司任何上市證券。

DIRECTORS’ REPORT董事會報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司60優先認購權本公司的組織章程細則或開曼群島的法律並無有關優先認購權的條文，規定本公司須按比例向現有股東提呈發售新股份。

稅務寬減及豁免本公司並不知悉任何股東因持有股份而享有任何稅務寬減。

股東如對購買、持有、出售、買賣股份或行使任何股份相關權利的稅務影響有任何疑問，務請諮詢彼等的專業顧問。

關聯方交易本集團於2023年12月31日止年度所進行的關聯方交易披露於綜合財務報表附註34。

持續關連交易於2021年12月9日，四川環龍與四川環龍新材料有限公司（「環龍新材料」）訂立一份總供應協議（「2021年環龍新材料總供應協議」），據此，四川環龍同意向環龍新材料按非獨家基準出售造紙毛毯，合約期由上市日期起至2023年12月31日止。

於2021年12月9日，四川環龍與四川環龍生活用品有限公司（「環龍生活用品」）訂立一份總供應協議（「2021年環龍新材料總供應協議」，連同2021年環龍新材料總供應協議統稱「2021年該等總供應協議」），據此四川環龍同意向環龍生活用品按非獨家基準出售造紙毛毯，合約期由上市日期起至2023年12月31日止。

*僅供識別PRE-EMPTIVERIGHTSThere are no provisions for pre-emptive rights under the Articles of Association of the Company or the laws of the Cayman Islands which would oblige the Company to offer new Shares on a pro rata basis to existing Shareholders.TAXRELIEFANDEXEMPTIONThe Company is not aware of any relief on taxation available to the shareholders by reason of their holding of the Shares. If the shareholders are unsure about the taxation implications of purchasing, holding, disposing of, dealing in, or exercising of any rights in relation to the Shares, they are advised to consult their professional advisers.RELATEDPARTYTRANSACTIONSThe related party transactions of the Group made during the year ended 31 December 2023 were disclosed in note 34 to the consolidated financial statements.CONTINUINGCONNECTEDTRANSACTIONSOn 9 December 2021, Sichuen Huanlong entered into a master supply agreement (the “2021 Huanlong New Material Master Supply Agreement ”) with Sichuan Huanlong New Material Ltd.* (四川環龍新材料有限公司) (“Huanlong New Material”), pursuant to which, Sichuan Huanlong agreed to sell papermaking felts to Huanlong New Material on a non-exclusive basis for a term commencing from the Listing Date and ending on 31 December 2023.On 9 December 2021, Sichuen Huanlong entered into a master supply agreement (the “2021 Huanlong New Material Master Supply Agreement” together with the 2021 Huanlong New Material Master Supply Agreement, the “2021 Master Supply Agreements”) with Sichuan Huanlong Daily Products Ltd.* (四川環龍生活用品有限公司) (“Huanlong Daily Products”), pursuant to which, Sichuan Huanlong agreed to sell papermaking felts to Huanlong Daily Products on a non-exclusive basis for a term commencing from the Listing Date and ending on 31 December 2023.* for identification purposes onlyDIRECTORS’ REPORT董事會報告61Annual Report 2023年報The papermaking felts to be supplied by the Group under the 2021 Master Supply Agreements are mainly used by Huanlong New Material and Huanlong Daily Products in their manufacturing process as a raw material for the production of various paper related products. Since supply of papermaking felts is in the ordinary and usual course of business of the Group, the transactions under the 2021 Master Supply Agreements provides a steady income of the Group.Huanlong Daily Products is a wholly-owned subsidiary of Huanlong New Material. Huanlong New Material is held as to approximately 33.44% by Huanlong Industrial Group Co., Ltd*環龍工業集團有限公司(which is in turn owned as to approximately 75% by Ms. Shen Genl ian and 25% by Mr. Zhou Jun), approximately 14.26% by New Stream Investment Limited (“New Stream”) (which is an independent third party), approximately 12.25% by Beijing Sequoia Mingde Equity Investment Center (Limited Partnership)* (北京紅杉銘德股權投資中心(有限合夥)) (“Beijing Sequoia Mingde”), an independent third party, approximately 3.48% by Ms. Shen Genlian and the remaining interest of approximately 36.57% by 15 other independent third parties, respectively. Hence Huanlong New Material and Huanlong Daily Products are therefore associates of Ms. Shen Genlian and Mr. Zhou Jun, and connected persons of the Company.New Stream is a limited liability partnership incorporated in the Cayman Islands and is principally engaged in investment activities. To the best of the Directors’ knowledge, information and belief, having made all reasonable enquiries, New Stream is ultimately wholly-owned by Redview Capital L.P. (鴻為資本), a private equity investing fund set up in the Cayman Islands that focuses on traditional growth capital, on investments in new materials, clean energy, consumer, and advanced manufacturing in China and is ultimately controlled by Mr. Hebert Pang Kee Chan, a Malaysian natural person.Beijing Sequoia Mingde is a limited partnership incorporated in the PRC, whose general partner is Beijing Sequoia Kund Investment Management Centre (Limited Partnership)* (北京紅杉坤德投資管理中心(有限合夥)) (“Beijing Sequoia Kund”). To the best knowledge and information of the Directors, Beijing Sequoia Mingde is owned as to approximately 66.67% by Beijing Sequoia Shengde Equity Investment Centre (Limited Partnership)* (北京紅杉盛德股權投資中心(有限合夥)) (“Beijing Sequoia Shengde”) and approximately 33.3% by Beijing Sequoia Capital Equity Investment Centre (Limited Partnership)* (北京紅杉漮德股權投資中心(有限合夥)).* for identification purposes only本集團根據2021年該等總供應協議供應的造紙毛毯主要由環龍新材料及環龍生活用品於其製造過程中用作生產各種紙相關產品的原材料。

由於造紙毛毯供應於本集團的一般及日常業務過程中進行，故2021年該等總供應協議項下交易為本集團提供穩定收入。

環龍生活用品為環龍新材料的全資附屬公司。

環龍新材料分別由環龍工業集團有限公司持有約33.44%（該公司由沈根蓮女士持有約75%權益及由周駿先生持有25%權益）、由獨立第三方New Stream Investment Limited（「New Stream」）持有約14.26%、由獨立第三方北京紅杉銘德股權投資中心（有限合夥）（「北京紅杉銘德」）持有約12.25%、由沈根蓮女士持有約3.48%及由其他15名獨立第三方持有餘下約36.57%的權益。

因此，環龍新材料及環龍生活用品為沈根蓮女士及周駿先生的聯繫人，亦為本公司的關連人士。

New Stream為一間於開曼群島註冊成立的有限責任合夥，主要從事投資活動。

據董事作出一切合理查詢後所深知、盡悉及確信，New Stream由鴻為資本最終全資擁有（一間於開曼群島成立的私募股權投資基金，由一位馬來西亞自然人彭其前先生最終控制，專注於傳統增長資本、在中國投資於新材料、清潔能源、消費者及先進生產）。

北京紅杉銘德為一間於中國註冊成立的有限合夥，其一般合夥為北京紅杉坤德投資管理中心（有限合夥）（「北京紅杉坤德」）。

據董事所深知及盡悉，北京紅杉銘德由北京紅杉盛德股權投資中心（有限合夥）（「北京紅杉盛德」）擁有約66.67%，以及由北京紅杉漮德股權投資中心（有限合夥）擁有約33.3%。

*僅供識別DIRECTORS’ REPORT董事會報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司62據董事所深知及盡悉，北京紅杉盛德由北京紅杉亞德股權投資中心（有限合夥）（「北京紅杉亞德」）擁有約40.9%。

寧波梅山保稅港區紅杉薈德投資管理合夥企業（有限合夥）（「寧波梅山」）為北京紅杉亞德的一般合夥。

北京紅杉坤德、北京紅杉盛德、北京紅杉亞德及寧波梅山各自為由紅杉中國間接非全資擁有的實體。

紅杉中國為一間領先的創投資本及私募股權投資基金，投資遍佈科技、保健及消費者行業。

自2005年起，紅杉中國一直培養創業及創新精神，支持全球超過1,500間具備技術轉化、顛覆性商業模型及高增長潛力的公司。

據董事作出一切合理查詢後所深知、盡悉及確信，環龍新材料、New Stream、北京紅杉銘德及其最終實益擁有人均為獨立第三方。

根據上市規則第14A.81條，2021年該等總供應協議項下擬進行的交易已合併計算，並視作一項交易處理，且總銷售額已用於計算適用百分比率。

於2021年該等總供應協議訂立日期，根據環龍新材料及環龍生活用品的過往銷售金額及預期需求，截至2023年12月31日止三個年度各年2021年該等總供應協議項下的估計銷售總額將少於每年3.0百萬港元。

由於2021年該等總供應協議項下擬進行交易相關的所有適用百分比率低於5%以及有關總銷售額低於每年3,000,000港元，2021年該等總供應協議項下擬進行的交易構成上市規則第14A.76(1)(c)條項下的最低限度的持續關連交易，目前獲豁免遵守申報、年度審查、公告及獨立股東批准的規定。

因此，概無為該等總供應協議項下擬進行的交易設定年度上限。

*僅供識別To the best knowledge and information of the Directors, Beijing Sequoia Shengde is owned as to approximately 40.9% by Beijing Sequoia Vir tue Equity Investment Centre (Limited Partnership)* (北京紅杉亞德股權投資中心(有限合夥)) (“Beijing Sequoia Virtue”). Ningbo Meishan Free Trade Port Zone Sequoia Aoide Investment Management Partnership (Limited Partnership)* (寧波梅山保稅港區紅杉薈德投資管理合夥企業(有限合夥)) (“Ningbo Meishan”) is the general partner of Beijing Sequoia Virtue.Each of Beijing Sequoia Kund, Beijiing Sequoia Shengde, Beijing Sequoia Virtue and Ningbo Meishan is an entity indirectly non-wholly owned by HongShan (紅杉中國).HongShan is a leading venture capital and private equity investing fund investing across technology, healthcare and consumer sectors. Since 2005, HongShan has been fostering entrepreneurship and innovation, backing more than 1,500 companies around the globe with transformative technologies, disruptive business models and high-growth potential.To the best of the Directors’ knowledge, information and belief, having made all reasonable enquiries Huanlong New Material, New Stream, Beijing Sequoia Mingde and its ultimate beneficial owners are independent third parties.The transact ions contemplated under the 2021 Maser Supply Agreements were aggregated and treated as if they were one transaction under Rule 14A.81 of the Listing Rules, and the aggregate sales were used for calculating the applicable percentage ratios.As at the date of entering into the 2021 Master Supply Agreements, based on the histor ical sales amounts and expected demand from Huanlong New Materials and Huanlong Daily Products, the estimated aggregate sales under the 2021 Master Supply Agreements for each of the three years ending 31 December 2023 would be less than HK$3.0 million per year. Since all applicable percentage ratios in respect of the transactions contemplated under the 2021 Master Supply Agreements were below 5% and the aggregated sales therein were less than HK$3,000,000 per year, the transactions contemplated under the 2021 Master Supply Agreements constituted de minimis continuing connected transactions under Rule 14A.76(1)(c) of the Listing Rules, and were exempt from reporting, annual review, announcement and the Company’s independent shareholders’ approval requirements at the time being. No annual cap was therefore set for the transactions contemplated under the Master Supply Agreements.* for identification purposes onlyDIRECTORS’ REPORT董事會報告63Annual Report 2023年報由於2022年環龍新材料擴張其生產基地及新造紙機器投產後對造紙毛毯的需求增加，環龍新材料及環龍生活用品增加對本集團的造紙毛毯採購量，並超過最低限度，合共約為4.5百萬港元。

本公司已就截至2023年12月31日止年度設定2021年該等總供應協議的新年度上限為低於6.0百萬港元（「新年度上限」）。

2021年該等總供應協議於2023年12月31日屆滿，本集團於2024年3月21日分別透過與環龍新材料及環龍生活用品訂立2024年環龍新材料總供應協議及2024年環龍生活用品總供應協議（統稱「2024年該等總供應協議」）以重續協議，由2024年1月1日至2026年12月31日止為期3年。

根據2024年該等總供應協議，本集團的造紙毛毯銷售總額年度上限於截至2026年12月31日止3個年度為人民幣9,000,000元、人民幣9,900,000元及人民幣9,900,000元。

有關2024年該等總供應協議的詳情分別載於本公司日期為2024年3月21日及2024年4月9日的公告。

由於最高年度上限的所有適用百分比率（利潤率除外）均少於5%，2024年該等總供應協議項下擬進行的交易須遵守上市規則第14A.76(2)(b)條的申報、公告及年度審查的規定，惟豁免遵守通函及獨立股東批的規定。

獨立非執行董事已檢討本集團的持續關連交易，並確認該等持續關連交易乃(i)於本集團一般及日常業務過程中訂立；(ii)按正常或更佳商業條款訂立；及(iii)根據規管該等交易的相關協議按公平合理且符合本公司股東整體權益的條款訂立。

Due to the increasing demand of the papermaking felts by Huanlong New Material after the expansion of its production site and the commencement of operation of its new papermaking machines in 2022, Huanlong New Material and Huanlong Daily Products increased its purchase of papermaking felts from the Group and exceeded the de minimis threshold and amounted to approximately HK$4.5 million. A new annual cap of the 2021 Master Supply Agreements of not more than HK$6.0 million (the “New Annual Cap”) was set for the year ending 31 December 2023.The 2021 Master Supply Agreements expired on 31 December 2023, the Group renew the agreements by entering into the 2024 Huanlong New Material Master Supply Agreement and the 2024 Huanlong Daily Products Master Supply Agreement (together, the “2024 Master Supply Agreements”) with Huanlong New Material and Huanlong Daily Products, respectively on 21 March 2024 for a term of 3 years commencing from 1 January 2024 and ending on 31 December 2026. The annual caps in respect of the aggregate sales of papermaking felts by the Group under the 2024 Master Supply Agreements are RMB9,000,000, RMB9,900,000 and RMB9,900,000 for 3 years ending 31 December 2026. Details of the 2024 Master Supply Agreements were set out in the Company’s announcements dated 21 March 2024 and 9 April 2024, respectively.As all the applicable percentage ratios (other than the profit ratio) for the highest annual cap are less than 5%, the transactions contemplated under the 2024 Master Supply Agreements are subject to the repor ting, announcement and annual review requirements, but exempted from the circular and the independent shareholders’ approval under Rule 14A.76(2)(b) of the Listing Rules.The independent non-executive Directors have reviewed the Group’s continuing connected transactions and have confirmed that these continuing connected transactions were entered into (i) in the ordinary and usual course of business of the Group, (ii) on normal commercial terms or better, and (iii) in accordance with the relevant agreements governing them on terms that are fair and reasonable and in the interests of the shareholders of the Company as a whole.DIRECTORS’ REPORT董事會報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司64除上文所披露者外，本公司已就上文所披露的本集團持續關連交易不時遵守上市規則第14A章的相關規定。

本公司核數師已獲委聘根據香港會計師公會頒佈之香港核證委聘準則第3000號（經修訂）「對過往財務資料進行審核或審閱以外之核證委聘」及參考實務指引第740號（經修訂）「關於香港上市規則所述持續關連交易之核數師函件」對本集團的持續關連交易作出報告。

核數師已根據上市規則第14A.56段發出函件，當中載有其有關上述本集團所披露的持續關連交易的發現及結論。

核數師已確認並無發現任何事項致使其相信已披露持續關連交易：(i)未獲本公司董事會批准；(ii)在所有重大方面未有按照本集團的定價政策進行；(iii)在所有重大方面未有按照規管該等交易的相關協議進行；及(iv)已超過本公司設定的年度上限。

Save as disclosed above, the Company has complied with the relevant requirements under Chapter 14A of the Listing Rules from time to time in respect of the continuing connected transactions of the Group disclosed above.The Company’s auditor was engaged to report on the Group’s continuing connected transactions in accordance with Hong Kong Standard on Assurance Engagements 3000 (Revised) “Assurance Engagements Other Than Audits or Reviews of Histor ical Financial Information” and with reference to Practice Note 740 (Revised) “Auditor’s Letter on Continuing Connected Transactions under the Hong Kong Listing Rules” issued by the Hong Kong Institute of Certified Public Accountants. The auditor has issued a letter containing the findings and conclusions in respect of the continuing connected transactions of the Group as disclosed above in accordance with Rule 14A.56 of the Listing Rules. The auditor has confirmed that nothing has come to their attention that causes them to believe that the disclosed continuing connected transactions:(i) have not been approved by the Company’s Board of Directors;(ii) were not, in all material respects, in accordance with the pricing policies of the Group;(iii) were not entered into, in a l l mater ia l respec ts , in accordance with the relevant agreements governing such transactions; and(iv) have exceeded the annual cap as set by the Company.DIRECTORS’ REPORT董事會報告65Annual Report 2023年報董事於重大交易、安排或合約中的權益除上文「持續關連交易」一節所披露者外，於年末或年內任何時間，本公司、其控股公司，或其任何附屬公司或同系附屬公司概無訂立重大交易、安排及合約，亦無董事於其中直接或間接擁有重大權益。

本公司與控股股東的合約除上文「關聯方交易」及「持續關連交易」各節及綜合財務報表附註34所述者外，於回顧年度內任何時間，本公司或其任何附屬公司概無與控股股東或控股股東任何附屬公司訂立提供服務或其他方面的重大合約。

主要客戶及供應商於回顧年度內，本集團五大客戶應佔銷售總額佔本集團年內銷售總額約16.7%，最大客戶的銷售額則佔約6.8%。

本集團五大供應商應佔採購總額佔本集團年內採購總額約77.3%，最大供應商則佔約51.8%。

據董事所深知，概無董事、彼等的聯繫人或任何股東擁有超過5%的本公司已發行股本或於本集團的五大供應商或客戶中擁有任何股本權益。

充足的公眾持股量根據本公司可得的公開資料及據董事所知，於刊發本年報前的最後實際可行日期，本公司始終按上市規則的規定維持充足的公眾持股量。

DIRECTORS’ INTERESTINTRANSACTIONS, ARRANGEMENTSANDCONTRACTSOF SIGNIFICANCESave as disclosed in section headed “Continuing Connected Transactions” above, there was no transactions, arrangements and contracts of significance, to which the Company, its holding company, or any of its subsidiaries or fellow subsidiaries was a party and in which a Director had a material interest, whether directly or indirectly, subsisted at the end of the year or at any time during the year.CONTRACTSBETWEENTHECOMPANYAND ITSCONTROLLINGSHAREHOLDERSSave as the sections headed “Related Party Transactions” and “Continuing Connected Transactions” above and note 34 to the consolidated financial statements, there is no contract of significance, whether for provision of service or otherwise, between the Company or any of i ts subsidiar ies and the Controlling Shareholders or any of the Controlling Shareholders’ subsidiaries at any time during the year under review.MAJORCUSTOMERSANDSUPPLIERSIn the year under review, the aggregate sales attributable to the Group’s five largest customers accounted for approximately 16.7% of the Group’s total sales for the year and the sales to the largest customer included therein amounted to approximately 6.8%. The aggregate purchases attr ibutable to the Group’s five largest suppliers accounted for approximately 77.3% of the Group’s total purchases for the year and the largest supplier included therein amounted to approximately 51.8%.None of the Directors, their associates or any shareholder which, to the best knowledge of the Directors, owned more than 5% of the Company’s issued share capital had any interest in the share capital of any of the Group’s five largest suppliers or customers.SUFFICIENCYOFPUBLICFLOATAccording to the information that is publicly available to the Company and within the knowledge of the Directors, the Company has maintained a sufficient public float as required under the Listing Rules as at the latest practicable date prior to the issue of this annual report.DIRECTORS’ REPORT董事會報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司66審核委員會的審閱本公司的審核委員會由三名獨立非執行董事組成，包括王運陳先生、張慎金先生及葉耘開先生。

2023年報乃經由審核委員會審閱。

核數師本公司的核數師，致同（香港）會計師事務所有限公司，將於本公司的應屆股東週年大會結束時退任，並合資格膺選連任。

將於2024年6月21日舉行的股東週年大會上將提呈決議案，以尋求股東批准續聘致同（香港）會計師事務所有限公司為本公司的核數師，直至下屆股東週年大會結束為止，以及授權董事會釐定其酬金。

股東週年大會本公司將於2024年6月21日（星期五）舉行股東週年大會。

召開股東週年大會的通告將適時刊發並寄發予股東。

暫停辦理股份過戶登記手續為釐定出席2024年股東週年大會並於會上投票的資格本公司將自2024年6月18日（星期二）起至2024年6月21日（星期五）止（包括首尾兩日）暫停辦理股份過戶登記手續，以釐定出席於2024年6月21日（星期五）舉行的股東週年大會並於會上投票的資格。

記錄日期將為2024年6月21日（星期五）。

為符合資格出席股東週年大會並於會上投票，所有股份過戶文件（連同相關股票）必須不遲於2024年6月17日（星期一）下午四時三十分送達本公司於香港的股份過戶登記處香港中央證券登記有限公司，地址為香港灣仔皇后大道東183號合和中心17樓1712–1716號舖。

REVIEWBYAUDITCOMMITTEEThe Audit Commit tee of the Company comprises three independent non-executive Directors, namely Mr. Wang Yunchen, Mr. Zhang Shenjin and Mr. Ip Wang Hoi. This 2023 annual report has been reviewed by the Audit Committee.AUDITORSGrant Thornton Hong Kong Limited, the auditors of the Company, wil l ret ire at the conclusion of the for thcoming AGM of the Company and be eligible to offer themselves for re-appointment. A resolution will be submitted to the AGM to be held on 21 June 2024 to seek the shareholders’ approval on the reappointment of Grant Thornton Hong Kong Limited as auditors of the Company until the conclusion of the next AGM and to authorise the Board to fix their remuneration.ANNUALGENERALMEETINGThe Company will hold the AGM on Friday,21 June 2024. A notice convening the AGM will be published and despatched to shareholders in due course.CLOSUREOFREGISTEROFMEMBERSFor determining the eligibility to attend and vote at the 2024 AGMThe register of members of the Company will be closed from Tuesday,18 June 2024 to Friday,21 June 2024 (both days inclusive) for the purpose of determining the entitlement of attending and voting at the AGM to be held on Friday,21 June 2024. The record date will be Friday,21 June 2024. In order to qualify for attending and voting at the AGM, all transfers accompanied by the relevant share certificate must be lodged with the Company’s share registrar in Hong Kong, Computershare Hong Kong Investor Services Limited at Shops 1712–1716,17/F., Hopewell Centre,183 Queen’s Road East, Wanchai, Hong Kong not later than 4:30 p.m. on Monday,17 June 2024.DIRECTORS’ REPORT董事會報告67Annual Report 2023年報獲派發建議末期股息的資格本公司將自2024年6月27日（星期四）起至2024年7月2日（星期二）止（包括首尾兩日）暫停辦理股份過戶登記手續，以釐定可享截至2023年12月31日止年度末期股息的資格。

記錄日期將為2024年7月2日（星期二）。

為符合資格獲派末期股息，所有股份過戶文件（連同相關股票）必須不遲於2024年6月26日（星期三）下午四時三十分送達本公司於香港的股份過戶登記處香港中央證券登記有限公司，地址為香港灣仔皇后大道東183號合和中心17樓1712–1716號舖。

期後事件除本報告所披露者外，於2023年12月31日後直至本年報日期，概無發生任何重大事件。

代表董事會沈根蓮主席香港，2024年3月28日Entitlement to the proposed final dividendThe register of members of the Company will be closed from Thursday,27 June 2024 to Tuesday,2 July 2024 (both days inclusive) for the purpose of determining the entitlement of receiving the final dividend for the year ended 31 December 2023. The record date will be Tuesday,2 July 2024. In order to qualify for receiving the final dividend, all transfers accompanied by the relevant share certificate must be lodged with the Company’s share registrar in Hong Kong, Computershare Hong Kong Investor Services Limited at Shops 1712–1716,17/F., Hopewell Centre,183 Queen’s Road East, Wanchai, Hong Kong not later than 4:30 p.m. on Wednesday,26 June 2024.EVENTSAFTERTHEREPORTINGPERIODSaved as disclosed in this report, no significant events of the Group occurred after 31 December 2023 and up to the date of this annual report.On behalf of the BoardShen Genlian ChairpersonHong Kong,28 March 2024INDEPENDENTAUDITOR’SREPORT獨立核數師報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司68To the members of Vanov Holdings Company Limited (incorporated in the Cayman Islands with limited liability)OPINIONWe have audited the consolidated financial statements of Vanov Holdings Company Limited (the “Company”) and its subsidiaries (together, the “Group”) set out on pages 75 to 165, which comprise the consolidated statement of financial position as at 31 December 2023, and the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information.In our opinion, the consolidated f inancial statements give a true and fair view of the consolidated financial position of the Group as at 31 December 2023, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with Hong Kong Financial Repor t ing Standards (“HKFRSs”) issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”) and have been properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance.BASISOFOPINIONWe conducted our audi t in accordance wi th Hong Kong Standards on Auditing (“HKSAs”) issued by the HKICPA. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the HKICPA’s Code of Ethics for Professional Accountants (the “Code”), and we have fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.致環龍控股有限公司的成員公司（於開曼群島註冊成立的有限公司）意見吾等已審核第75至165頁所載環龍控股有限公司（「貴公司」）及其附屬公司（統稱「貴集團」）的綜合財務報表，當中包括於2023年12月31日的綜合財務狀況表，及截至該日止年度的綜合損益及其他全面收益表、綜合權益變動表及綜合現金流量表，以及載有重大會計政策資料的綜合財務報表附註。

吾等認為，該等綜合財務報表已根據香港會計師公會（「香港會計師公會」）頒佈的《香港財務報告準則》（「香港財務報告準則」），真實而中肯地反映貴集團於2023年12月31日的綜合財務狀況，及截至該日止年度的綜合財務表現及綜合現金流量，並已遵照香港公司條例的披露要求妥為編製。

意見的基礎吾等已根據香港會計師公會頒佈的《香港審核準則》（「香港審核準則」）進行審核。

吾等在該等準則下承擔的責任已在本報告「核數師就審核綜合財務報表須承擔的責任」一節中作進一步闡述。

根據香港會計師公會頒佈的《專業會計師道德守則》（「守則」），吾等獨立於貴集團，並已履行守則中的其他職業道德責任。

吾等相信，吾等所獲得的審核憑證足夠且適合作為審核意見的基礎。

INDEPENDENTAUDITOR’SREPORT獨立核數師報告Annual Report 2023年報69KEYAUDITMATTERSKey audit matters are those matters that, in our professional judgment , were of most s igni f icance in our audi t of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.Revenue recognition for sales of papermaking felts銷售造紙毛毯的收益確認Refer to Notes 2.16 and 4 to the consolidated financial statements請參閱綜合財務報表附註2.16及4 Key Audit Matter How our audit addressed the Key Audit Matter關鍵審核事項吾等的審核如何處理關鍵審核事項Revenue principally comprises revenue from the design, manufacture and sales of papermaking felts.收益主要包括設計、製造及銷售造紙毛毯所得收益。

Sales of papermaking felts are recognised when control of the goods has been transferred to the customers, being at the point in time when the goods are delivered.造紙毛毯的銷售於貨品的控制權轉移至顧客後（即交付貨品時）予以確認。

We identified the recognition of revenue as a key audit matter because of its significance to the Group and revenue is one of the key performance indicators of the Group, therefore it is a significant audit risk area.收益確認已獲吾等確定為關鍵審核事項，因為其對貴集團屬重大，且收益乃貴集團的關鍵績效指標之一，因此收益屬重大的審核風險範疇。

Our audit procedures to assess the recognition of revenue included:吾等評估收益確認的審核程序包括： obtaining an understanding of the processes and internal control in relation to recognition of revenue from sales of papermaking felts;了解銷售造紙毛毯時確認收益的過程及內部監控； assessing the appropriateness of judgment made by management on revenue recognition on the sales of papermaking felts by reviewing the sales contracts, on a sample basis, with reference to HKFRS 15;參照香港財務報告準則第15號抽樣審閱銷售合約，以評估管理層確認銷售造紙毛毯收益時所作出的判斷是否恰當； testing the revenue recognised from sales of papermaking felts, on a sample basis, against sales contracts or orders, and customer acknowledgement of delivery to evaluate whether the control of the papermaking felts has passed to the customers;抽樣對照銷售合約或訂單和顧客的交付回執（用作評估造紙毛毯的控制權是否已移交顧客），以測試銷售造紙毛毯所確認的收益； performing analysis of revenue, gross profit trend and their fluctuation; and 分析收益，毛利趨勢及其波幅；及 assessing the adequacy of the Group’s disclosure with respect to revenue recognised.評估貴集團就收益確認所作出的披露是否足夠。

關鍵審核事項關鍵審核事項乃吾等根據專業判斷，認為對本期間綜合財務報表的審核最為重大的事項。

吾等於審核整體綜合財務報表及出具意見時處理該等事項。

吾等不會對該等事項提供單獨的意見。

INDEPENDENTAUDITOR’SREPORT獨立核數師報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司70Impairment assessment of trade receivables貿易應收款項的減值評估Refer to Notes 2.9,18 and 36.5 to the consolidated financial statements請參閱綜合財務報表附註2.9、18及36.5 Key Audit Matter How our audit addressed the Key Audit Matter關鍵審核事項吾等的審核如何處理關鍵審核事項T h e G r o u p ’s n e t t r a d e r e c e i va b l e s a m o u n t i n g t o approximately RMB173,791,000 has been net of f with lifetime expected credit losses (“ECL”) on trade receivables amounted to approx imate ly RMB5,202,000 as at 31 December 2023.於2023年12月31日，貴集團的貿易應收款項淨額約為人民幣173,791,000元，且已扣除貿易應收款項的全期預期信貸虧損（「預期信貸虧損」）約人民幣5,202,000元。

We identified impairment assessment of trade receivables as a key audit matter due to the signif icance of trade receivables to the Group’s consolidated financial position and the invo l vement o f sub jec t i ve j udgement and management estimates in evaluating ECL of the Group’s trade receivables at the end of the reporting period.貿易應收款項的減值評估已獲吾等確定為關鍵審核事項，因為貿易應收款項對貴集團的綜合財務狀況屬重大，加上評估貴集團於報告期末的貿易應收款項預期信貸虧損時涉及管理層的主觀判斷及估計。

Our audit procedures to assess the impairment assessment of trade receivables included:吾等評估貿易應收款項減值評估的審核程序包括： obtaining an understanding of management’s processes and internal control regarding the collection and the assessment of the recoverability of trade receivables; 了解管理層收回貿易應收款項的過程及內部監控，以及就貿易應收款項可否回收作出的評估； testing the accuracy of the trade receivables ageing analysis, on a sample basis, by checking to the source documents; 檢查原始文件，以抽樣測試貿易應收款項的賬齡分析是否準確； evaluating the management’s assessment on the ECL of trade receivables, including their identif ication of credit-impaired receivables and the reasonableness of management’s grouping of the remaining trade receivables into different categories in the provision matrix, and the basis of estimated loss rates applied in each category in the provision matrix, with reference to the historical payment records, public available information and credit history of the Group’s customers and the correspondence with customers; and參照過往付款記錄、公開可得資料以及貴集團顧客的信貸記錄及相關通訊，以評核管理層就貿易應收款項預期信貸虧損作出的測試，包括確定信貸減值的應收款項、管理層有否合理地按撥備矩陣內的不同類別為剩餘的貿易應收款項分組，以及撥備矩陣內各類別用作為基準的估計虧損率；及 Evaluating the disclosures regarding the impairment assessment of trade receivables to the consolidated financial statements.評核綜合財務報表就貿易應收款項減值評估作出的披露。

KEYAUDITMATTERS (Continued)關鍵審核事項（續）INDEPENDENTAUDITOR’SREPORT獨立核數師報告Annual Report 2023年報71OTHERINFORMATIONThe directors are responsible for the other information. The other information comprises all the information in the 2023 annual report of the Company, but does not include the consolidated financial statements and our auditor’s report thereon.Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.In connection with our audit of the consolidated f inancial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.RESPONSIBILITIESOFTHEDIRECTORS FORTHECONSOLIDATEDFINANCIAL STATEMENTSThe directors are responsib le for the preparat ion of the consolidated financial statements that give a true and fair view in accordance with HKFRSs issued by the HKICPA and the disclosure requirements of the Hong Kong Companies Ordinance, and for such internal control as the directors determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.In preparing the consolidated financial statements, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.The directors assisted by the Audit Committee are responsible for overseeing the Group’s financial reporting process.其他資料董事須對其他資料負責。

其他資料包括貴公司2023年報內的所有資料，惟不包括綜合財務報表及吾等的核數師報告。

吾等對於綜合財務報表的意見並不涉及其他資料，吾等亦不會對該等其他資料發表任何形式的鑒證結論。

就吾等對綜合財務報表的審核而言，吾等的責任乃閱覽其他資料，藉以考慮其他資料是否與綜合財務報表或吾等於審核時所了解的情況出現重大抵觸，又或是否存在重大錯誤陳述。

基於吾等已執行的工作，倘若吾等認為其他資料存在重大錯誤陳述，則吾等須如實報告。

就此而言，吾等並無任何報告事項。

董事就綜合財務報表須承擔的責任根據香港會計師公會頒佈的香港財務報告準則及香港公司條例的披露規定，董事有責任編製真實而中肯的綜合財務報表，亦須對其認為屬必要的內部監控負責，以避免編製綜合財務報表時因欺詐或錯誤而引致重大錯誤陳述。

於編製綜合財務報表時，董事有責任評估貴集團持續經營的能力，於適用情況下披露有關持續經營的事項，並使用持續經營為會計基礎，除非董事有意將貴集團清盤或停止經營，或別無其他實際的替代方案。

審核委員會協助董事履行監督貴集團的財務報告過程的責任。

INDEPENDENTAUDITOR’SREPORT獨立核數師報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司72AUDITOR’SRESPONSIBILITIESFORTHE AUDITOFTHECONSOLIDATEDFINANCIAL STATEMENTSOur objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. We report our opinion solely to you, as a body, in accordance with our agreed terms of engagements and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with HKSAs wil l always detect a mater ial misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.As part of an audit in accordance with HKSAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.核數師就審核綜合財務報表須承擔的責任吾等旨在就綜合財務報表整體是否不存在因欺詐或錯誤而引致的重大錯誤陳述作出合理鑒證，並出具載有吾等意見的核數師報告。

吾等按照所協定的委聘條款僅向閣下（作為整體）報告吾等的意見，除此之外本報告別無其他目的。

吾等概不就本報告的內容向任何其他人士負上或承擔任何責任。

合理鑒證屬高水平的保證，惟無法保證按照香港審核準則作出的審核將能一直發現存在重大錯誤陳述。

倘錯誤陳述可在合理預期情況下影響綜合財務報表的個別或整體使用者根據該等報表作出經濟決定，則有關錯誤陳述視作重大。

根據香港審核準則進行審計的過程中，吾等運用專業判斷，保持專業懷疑態度。

吾等亦：識別並評估因欺詐或錯誤而引致綜合財務報表存在重大錯誤陳述的風險，設計並執行審核程序以應對該等風險，以及獲取充足及適當的審核憑證，作為吾等意見的基礎。

由於欺詐可能涉及串謀、偽造、蓄意遺漏、虛假陳述，或淩駕於內部監控之上，因此未能發現因欺詐而引致重大錯誤陳述的風險高於未能發現因錯誤而引致重大錯誤陳述的風險。

了解與審核相關的內部監控，以設計適當的審核程序，惟並非旨在對貴集團內部監控是否有效發表意見。

評估董事所採用的會計政策是否恰當、作出的會計估計及相關披露是否合理。

INDEPENDENTAUDITOR’SREPORT獨立核數師報告Annual Report 2023年報73AUDITOR’SRESPONSIBILITIESFORTHE AUDITOFTHECONSOLIDATEDFINANCIAL STATEMENTS (Continued) conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern. evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, action taken to eliminate threats or safeguards applied.核數師就審核綜合財務報表須承擔的責任（續） 就董事採用的持續經營會計基礎是否恰當作出結論。

根據所獲取的審核憑證，確定是否存在有關事項或情況的重大不確定因素，從而可能導致貴集團的持續經營能力產生重大疑慮。

倘若吾等認為存在重大不確定因素，則有必要於核數師報告中提請使用者注意綜合財務報表中的相關披露。

倘若相關披露不足，則吾等應修改意見。

吾等的結論按照截至核數師報告日期止所取得的審計憑證為基準。

然而，未來事項或情況可能導致貴集團無法持續經營。

評估綜合財務報表的整體呈報方式、結構及內容（包括披露資料），以及綜合財務報表有否中肯地反映相關交易和事項。

就貴集團當中的實體或業務活動的財務資料獲取充足、適當的審核憑證，以便對綜合財務報表發表意見。

吾等負責貴集團審核的方向、監督及執行。

吾等為審核意見承擔全部責任。

吾等與審核委員會溝通（其中包括）審計的計劃範圍、時間安排、重大審核發現，包括吾等於審核時所確定的任何內部監控重大缺陷。

吾等亦向審核委員會發出聲明，說明吾等已符合有關獨立性的相關專業道德要求，及告知彼等一切有可能影響吾等獨立性的關係及其他事項，以及相關防範措施（如適用）。

INDEPENDENTAUDITOR’SREPORT獨立核數師報告VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司74AUDITOR’SRESPONSIBILITIESFORTHE AUDITOFTHECONSOLIDATEDFINANCIAL STATEMENTS (Continued)From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit of the consolidated f inancial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a mat ter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.Grant Thornton Hong Kong LimitedCertified Public Accountants11th Floor, Lee Garden Two28 Yun Ping RoadCauseway BayHong Kong SAR28 March 2024Lau Kwong KeiPractising Certificate No.: P07578核數師就審核綜合財務報表須承擔的責任（續） 與審核委員會溝通的事項當中，吾等確定哪些事項對於本期綜合財務報表的審核最為重大，屬關鍵審核事項。

除非法律法規禁止公開披露該等事項，又或於極端罕見的情況下，吾等認為在吾等報告內發佈某事項造成合理預期的負面後果超過發佈所帶來的公眾利益，否則吾等將於核數師報告中敘述該等事項。

致同（香港）會計師事務所有限公司執業會計師香港銅鑼灣恩平道28號利園二期11樓2024年3月28日劉廣基執業證書編號：P07578CONSOLIDATEDSTATEMENTOFPROFITORLOSSANDOTHERCOMPREHENSIVEINCOME綜合損益及其他全面收益表For the year ended 31 December 2023截至2023年12月31日止年度Annual Report 2023年報75 202320222023年2022年Notes RMB’000 RMB’000附註人民幣千元人民幣千元Revenue收益4237,370217,756Cost of sales銷售成本(110,881) (100,939) Gross profit毛利126,489116,817Other income其他收入513,50020,102Fair value loss on financial assets at fair value through profit or loss按公平值計入損益的金融資產的公平值虧損19 (154) (1)Selling and distribution expenses銷售及分銷開支(22,400) (21,595)Administrative and other operating expenses行政及其他經營開支(42,326) (40,345)Finance costs財務成本6 (11,714) (10,536) Profit before income tax除所得稅前溢利763,39564,442Income tax expense所得稅開支8 (9,712) (11,442) Profit and total comprehensive income for the year年內溢利及全面收益總額53,68353,000 Profit and total comprehensive income attributable to：以下各方應佔溢利及全面收益總額：Equity holders of the Company本公司權益持有人53,12452,437Non-controlling interests非控股權益559563 53,68353,000 202320222023年2022年RMB cents RMB cents人民幣分人民幣分Earnings per share attributable to equity holders of the Company本公司權益持有人應佔每股盈利Basic and diluted基本及攤薄1010.9910.93 CONSOLIDATEDSTATEMENTOFFINANCIALPOSITION綜合財務狀況表As at 31 December 2023於2023年12月31日VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司76 202320222023年2022年Notes RMB’000 RMB’000附註人民幣千元人民幣千元ASSETSANDLIABILITIES資產及負債Non-current assets非流動資產Property, plant and equipment物業、廠房及設備12358,053176,718Investment property投資物業1338,26140,296Land lease prepayment土地租賃預付款項154,8435,180Intangible assets無形資產1680,54169,019Prepayment of acquisition for property, plant and equipment and intangible assets收購物業、廠房及設備及無形資產的預付款項29,84388,137Deposit按金2,1002,100Deferred tax assets遞延稅項資產27900760 514,541382,210 Current assets流動資產Inventories存款1719,12317,333Trade and other receivables貿易及其他應收款項18209,932181,543Financial assets at fair value through profit or loss按公平值計入損益的金融資產19830984Cash and cash equivalents現金及現金等價物2078,63185,618 308,516285,478 Current liabilities流動負債Contract liabilities合約負債211,395486Trade and other payables貿易及其他應付款項2255,93148,534Lease liabilities租賃負債234,1253,460Discounted bills financing貼現票據融資243,690 —Bank borrowings銀行借款2584,96157,500Other borrowings其他借款2627,43724,381Income tax payable應付所得稅13,77814,557 191,317148,918 Net current assets流動資產淨額117,199136,560 Total assets less current liabilities總資產減流動負債631,740518,770 CONSOLIDATEDSTATEMENTOFFINANCIALPOSITION綜合財務狀況表As at 31 December 2023於2023年12月31日Annual Report 2023年報77 202320222023年2022年Notes RMB’000 RMB’000附註人民幣千元人民幣千元Non-current liabilities非流動負債Lease liabilities租賃負債233,3896,673Other borrowings其他借款2629,81529,122Bank borrowings銀行借款25184,500104,500Deferred tax liabilities遞延稅項負債275,0275,121 222,731145,416 Net assets資產淨值409,009373,354 CAPITALANDRESERVES資本及儲備Share capital股本283,9493,949Reserves儲備29401,707366,409 Equity attributable to equity holders of the Company本公司權益持有人應佔權益405,656370,358Non-controlling interests非控股權益3,3532,996 Total equity總權益409,009373,354 The consolidated financial statements on pages 75 to 165 were approved by the Board of Directors on 28 March 2024 and were signed on its behalf.Shen Genlian Xie Zongguo沈根蓮謝宗國Director Director董事董事The notes on pages 81 to 165 are an integral part of these consolidated financial statements.第75至165頁的綜合財務報表於2024年3月28日經董事會批准，並由以下人士代為簽署。

第81至165頁所載的附註構成此等綜合財務報表的一部分。

CONSOLIDATEDSTATEMENTOFCHANGESINEQUITY綜合權益變動表For the year ended 31 December 2023截至2023年12月31日止年度VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司78Attributable to equity holders of the Company本公司權益持有人應佔SharecapitalSharepremium*Capitalreserve*Statutoryreserve*Retainedprofits* SubtotalNon-controllinginterests Total股本股份溢價*資本儲備*法定儲備*保留溢利*小計非控股權益總計RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000人民幣千元人民幣千元人民幣千元人民幣千元人民幣千元人民幣千元人民幣千元人民幣千元(Note 29) (Note 29) (Note 29)（附註29） （附註29） （附註29）As at 1 January 2022於2022年1月1日1 — 43,84133,312135,395212,5492,433214,982Profit and total comprehensive income for the year年內溢利及全面收益總額— — — — 52,43752,43756353,000Transfer轉撥— — — 11,358 (11,358) — — —Capitalisation issue資本化發行2,990 (2,990) — — — — — —Issue of new shares發行新股份958115,948 — — — 116,906 — 116,906Transaction costs attributable to issue of new shares發行新股份應佔交易成本— (11,534) — — — (11,534) — (11,534) As at 31 December 2022 and 1 January 2023於2022年12月31日及2023年1月1日3,949101,42443,84144,670176,474370,3582,996373,354Profit and total comprehensive income for the year年內溢利及全面收益總額— — — — 53,12453,12455953,683Transfer轉撥— — — 4,798 (4,798) — — —Dividends paid to non-controlling interests已付非控股權益股息— — — — — — (202) (202)Final dividends paid to equity holders of the Company for the year ended 31 December 2022 (Note 11)截至2022年12月31日止年度已付本公司權益持有人末期股息（附註11） — — — — (17,826) (17,826) — (17,826) As at 31 December 2023於2023年12月31日3,949101,42443,84149,468206,974405,6563,353409,009* The rese r ves ac c ounts c ompr i se t he G roup’s rese r ves o f RMB401,707,000 (2022: RMB366,409,000) in the consolidated statement of financial position.*儲備賬目包括綜合財務狀況表內的本集團儲備人民幣401,707,000元（2022年：人民幣366,409,000元）。

CONSOLIDATEDSTATEMENTOFCASHFLOWS綜合現金流量表For the year ended 31 December 2023截至2023年12月31日止年度79Annual Report 2023年報202320222023年2022年Note RMB’000 RMB’000附註人民幣千元人民幣千元Operating activities經營活動Profit before income tax除所得稅前溢利63,39564,442Adjustments for:就下列各項作出調整：Amortisation of intangible assets無形資產攤銷4,4413,225Depreciation折舊716,23812,190(Gain)/Loss on disposal of property, plant and equipment出售物業、廠房及設備（收益）╱虧損(29) 82Reversal of provisions for inventories存貨撥備撥回(91) (377)Provision of allowance on trade and bills receivables, net貿易應收款項及應收票據撥備淨額1,544823Provision for warranty保養撥備6,5664,579Interest income利息收入(3,271) (997)Fair value loss on financial assets at fair value through profit or loss按公平值計入損益的金融資產公平值虧損1541Unrealised exchange gain, net未變現匯兌收益淨額(1,695) (6,138)Finance costs財務成本11,71410,536 Operating cash flows before working capital changes營運資金變動前的經營現金流量98,96688,366Increase in inventories存貨增加(1,699) (5,053)Increase in trade and other receivables貿易及其他應收款項增加(29,933) (28,889)Increase in trade and other payables貿易及其他應付款項增加8314,786Increase/(Decrease) in contract liabilities合約負債增加╱（減少）909 (26)Decrease in amount due to a related party應付關聯方款項減少— (20) Cash generated from operations經營所得現金69,07459,164Income tax paid已付所得稅(10,725) (1,568) Net cash generated from operating activities經營活動所得現金淨額58,34957,596 CONSOLIDATEDSTATEMENTOFCASHFLOWS綜合現金流量表For the year ended 31 December 2023截至2023年12月31日止年度VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司80 202320222023年2022年Note RMB’000 RMB’000附註人民幣千元人民幣千元Investing activities投資活動Acquisition of property, plant and equipment收購物業、廠房及設備(132,868) (84,009)Acquisition of intangible assets收購無形資產(15,963) (10,903)Additions of subsequent expenditures on investment property投資物業的其後支出的增加— (1,348)Interest received已收利息3,271997Proceeds from disposal of property, plant and equipment出售物業、廠房及設備所得款項959339Purchase of financial assets at fair value through profit or loss購買按公平值計入損益之金融資產— (985) Net cash used in investing activities投資活動所用現金淨額(144,601) (95,909) Financing activities融資活動Proceeds of bank borrowings銀行借款所得款項185,000162,300Repayment of bank borrowings償還銀行借款(77,539) (105,300)Proceeds of other borrowings其他借款所得款項30,000 —Repayment of other borrowings償還其他借款(29,968) (18,367)Repayment of lease liabilities償還租賃負債(3,871) (4,840)Interest paid已付利息(11,714) (10,536)Listing expenses paid已付上市開支— (19,624)Increase/(Decrease) in discounted bills financing貼現票據融資增加╱（減少）3,690 (3,821)Proceeds from issue of new shares發行新股份所得款項— 116,906Transaction costs attributable to issue of new shares發行新股份應佔交易成本— (11,534)Dividends paid to non-controlling interests已付非控股權益股息(202) —Dividends paid to equity holders of the Company已付本公司權益持有人股息(17,826) — Net cash from financing activities融資活動所得現金淨額77,570105,184 Net (decrease)/increase in cash and cash equivalents現金及現金等價物（減少）╱ 增加淨額(8,682) 66,871Cash and cash equivalents at beginning of year年初現金及現金等價物85,61812,609Effect of foreign exchange rate changes匯率變動影響1,6956,138 Cash and cash equivalents at end of year年末現金及現金等價物2078,63185,618 NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註81Annual Report 2023年報1. GENERALINFORMATION1.1 General informationVanov Holdings Company Limited (the “Company”) was incorporated in the Cayman Islands on 5 November 2018 as an exempted company with limited liability under the Companies Act, Cap.22 (Act 1, as consolidated and revised) of the Cayman Islands. The address of its registered office is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands and its headquarter is situated at No.519, Section 2, Xinhua Avenue, Chengdu Strait Science and Technology Industry Development Park, Wenjiang District, Chengdu, Sichuan Province, the People’s Republic of China (the “PRC”).The Company is an investment holding company and its subsidiaries are principally engaged in the design, manufacture and sales of papermaking felts.The Company’s immediate holding company is Perfect Angle Limited (“Perfect Angle”), a company incorporated in the British Virgin Islands (“BVI”). The Company’s ultimate controlling parties are Ms. Shen Genlian and Mr. Zhou Jun, the spouse of Ms. Shen Genlian (together, the “Controlling Shareholders”).The Company’s shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited (the “Stock Exchange”) on 11 January 2022.These consolidated f inancial statements for the year ended 31 December 2023 were approved for issue by the board of directors (the “Board”) on 28 March 2024.2. SUMMARYOFMATERIALACCOUNTING POLICIES2.1 Basis of preparationThese consolidated f inancial statements have been prepared in accordance with Hong Kong Financial Reporting Standards (“HKFRSs”) which collective term includes all applicable individual HKFRSs, Hong Kong Accounting Standards (“HKASs”) and Interpretations issued by the Hong Kong Institute of Certified Public Accountants (“HKICPA”) and the accounting principles generally accepted in Hong Kong. The consolidated f inancial statements also comply with the applicable disclosure requirements of the Hong Kong Companies Ord inance and inc lude the app l icab le d isc losure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (“Listing Rules”).1.一般資料1.1一般資料環龍控股有限公司（「本公司」）於2018年11月5日根據開曼群島公司法第22章（1961年第3號法例，經綜合及修訂）在開曼群島註冊成立為獲豁免有限責任公司，註冊辦事處位於Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands，而其總部位於中華人民共和國（「中國」）四川省成都市溫江區海峽兩岸科技產業開發園新華大道二段519號。

本公司為一間投資控股公司，連同其附屬公司主要從事造紙毛毯的設計、製造及銷售。

本公司的直接控股公司為Perfect Angle Limited（「Perfect Angle」），該公司於英屬處女群島（「英屬處女群島」）註冊成立。

本公司的最終控制方為沈根蓮女士及周駿先生（沈根蓮女士的配偶）（統稱為「控股股東」）。

本公司股份於2022年1月11日在香港聯合交易所有限公司（「聯交所」）主板上市。

截至2023年12月31日止年度的綜合財務報表於2024年3月28日經董事會（「董事會」）批准刊發。

2.重大會計政策概要2.1編製基準此等綜合財務報表乃按照香港財務報告準則（「香港財務報告準則」）編製。

香港財務報告準則僅為一個統稱，當中包括香港會計師公會（「香港會計師公會」）頒佈的所有適用個別香港財務報告準則、香港會計準則（「香港會計準則」）及詮釋，以及香港一般公認的會計原則。

綜合財務報表亦符合香港公司條例的適用披露規定及包括香港聯合交易所有限公司證券上市規則（「上市規則」）的適用披露規定。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司822. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.1 Basis of preparation (Continued)The material accounting policies that have been used in the preparation of this consolidated financial statements are summar ised below. These pol ic ies have been consistently applied to all the years presented unless otherwise stated. The adoption of new or amended HKFRSs and the impacts on the Group’s f inancial statements, if any, are disclosed in Note 2.2.The consol idated f inanc ia l statements have been prepared on the historical cost basis except for certain financial assets which are stated at fair values.I t should be noted that account ing est imates and assumptions are used in preparation of the consolidated f inancial statements. Although these estimates are based on management’s best knowledge and judgment of current events and act ions, actual results may ultimately differ from those estimates. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 3.2.2 Adoption of new and amended HKFRSsNew and amended HKFRSs that are effective for annual periods beginning on or after 1 January 2023In the current year, the Group has applied for the first time the following new and amended HKFRSs issued by the HKICPA, which are relevant to the Group’s operations and ef fective for the Group’s consolidated f inancial statements for the annual period beginning on 1 January 2023:Amendments to HKAS 1 and HKFRSPractice Statement 2Disclosure of Accounting PoliciesAmendments to HKAS 8 Definition of Accounting EstimatesAmendments to HKAS 12 Deferred Tax related to Assets and Liabilities arising from a Single TransactionAmendments to HKAS 12 International Tax Reform — Pillar Two Model RulesThe adoption of the new and amended HKFRSs had no material impact on how the results and financial position for the current and prior periods have been prepared and presented.2.重大會計政策概要（續） 2.1編製基準（續）編製此等綜合財務報表時所採用的重大會計政策概述於下文。

除非另有說明，否則該等政策已於呈列的所有年度貫徹應用。

新訂或經修訂香港財務報告準則的採用以及對本集團財務報表的影響（如有）於附註2.2披露。

綜合財務報表乃按歷史成本基礎編製，惟若干按公平值呈列的金融資產除外。

務請注意，編製綜合財務報表時會使用會計估計及假設。

儘管該等估計乃基於管理層對目前事件及行動的最佳理解及判斷作出，惟實際結果最終可能與該等估計有異。

涉及較高程度判斷或複雜性之範圍，或假設及估計對綜合財務報表而言屬重大之範圍於附註3披露。

2.2採用新訂及經修訂香港財務報告準則於2023年1月1日或之後開始的會計期間生效的新訂及經修訂香港財務報告準則於本年度，本集團首次應用以下由香港會計師公會頒佈的新訂及經修訂香港財務報告準則，有關準則與本集團的營運有關及適用於2023年1月1日開始的年度期間本集團的綜合財務報表：香港會計準則第1號及香港財務報告準則實務報告第2號（修訂本）會計政策的披露香港會計準則第8 號（修訂本）會計估計的定義香港會計準則第12號（修訂本）單一交易產生之資產及負債之相關遞延稅項香港會計準則第12號（修訂本）國際稅務改革—第二支柱模型規例採納新訂及經修訂香港財務報告準則對如何編製及呈列本期間及過往期間的業績及財務狀況並無重大影響。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註83Annual Report 2023年報2.重大會計政策概要（續） 2.2採用新訂及經修訂香港財務報告準則（續）香港會計準則第1號及香港財務報告準則實務公告第2號（修訂本）「會計政策的披露」香港會計準則第1號（修訂本）要求實體於其財務報表中披露重大會計政策資料而非其重要的會計政策。

倘會計政策資料連同實體財務報表內其他資料一併考慮，可合理預期其會影響通用財務報表主要使用者基於該等財務報表所作出的決定，則該會計政策資料屬重大。

該等修訂本亦就如何識別重大政策資料提供指引，並舉例說明會計政策資料何時可能屬重大。

於2021年3月，香港會計師公會頒佈香港財務報告準則實務公告第2號「作出重大判斷」，為實體在根據香港財務報告準則編製通用財務報表時如何作出重大判斷提供非強制性指引。

香港財務報告準則實務公告第2號隨後作出修訂，以提供有關如何將重大的概念應用於會計政策披露的指引及示例。

本集團於2023年1月1日應用香港會計準則第1號（修訂本），且有關修訂本於未來適用。

應用該等修訂本並無對本集團財務狀況及表現構成影響，惟影響綜合財務報表附註2所載會計政策的披露。

2. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.2 Adoption of new and amended HKFRSs (Continued)Amendments to HKAS 1 and HKFRSPractice Statement 2 “Disclosure of Accounting Policies”The amendments to HKAS 1 require entities to disclose mater ia l account ing po l icy informat ion instead of significant accounting policies in its financial statements. Account ing pol icy informat ion is mater ial i f, when considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those f inancial statements. The amendments also provide some guidance on how material policy information are being identified and provide some examples of when accounting policy information is likely to be material. In March 2021, HKICPA issued HKFRSPrac t ice Statement 2 “Making Materiality Judgements” to provide entities with non-mandatory guidance on how to make materiality judgements when preparing their general purpose financial statements in accordance with HKFRS. HKFRSPractice Statement 2 was subsequently revised to provide guidance and examples on how to apply the concept of materiality to accounting policy disclosures.The amendments to HKAS 1 are applied by the Group on 1 January 2023 and are applied prospectively. The amendments have no impact on the Group’s financial pos i t ions and per fo rmance but has a f fec ted the accounting policies disclosures as set out in note 2 to the consolidated financial statements.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司842. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.2 Adoption of new and amended HKFRSs (Continued)Amendments to HKAS 8 “Definition of Accounting Estimates”The amendments clarify how entities should distinguish changes in account ing po l ic ies f rom changes in accounting estimates by introducing a def inition for accounting estimates, which is now defined as “monetary amounts in the financial statements that are subject to measurement uncertainty”.Besides, the amendments also clarify the relationship between accounting policies and accounting estimates by specifying that an entity develops an accounting estimate to achieve the objective set out by an accounting policy. Accounting estimates typically involve the use of judgements or assumptions based on latest available reliable information. A change in accounting estimate that results from new information or new development is not correction of an error. Therefore, the effects of a change in an input or a measurement technique used to develop an accounting estimate are changes in accounting estimates if they do not result from the correction of prior period errors. In addition, two illustrative examples are added to illustrate how to apply the new definition of accounting estimates.The amendments are applied by the Group on 1 January 2023 and are applied prospectively. The amendments have no impact on the consolidated financial statements of the Group.2.重大會計政策概要（續） 2.2採用新訂及經修訂香港財務報告準則（續）香港會計準則第8號（修訂本）「會計估計的定義」該等修訂本釐清實體應如何區分會計政策變動與會計估計變動，就此引入對會計估計的定義。

現將會計估計定義為「財務報表中具有計量不確定性的貨幣金額」。

另外，該等修訂本亦釐清會計政策與會計估計的關係，說明實體作出會計估計乃為了實現會計政策所制定的目標。

作出會計估計時一般涉及依賴最新可得且可靠的資訊以進行判斷或假設。

因有任何新資訊或新發展而造成的會計估計變動並不屬於差錯更正。

因此，用以建立會計估計的輸入資料或計量技術如有變動，且該變動並非前期差錯的更正，該變動即屬會計估計變動。

此外，亦新增了兩項釋例，以說明如何應用會計估計的新定義。

本集團於2023年1月1日應用該等修訂本，且有關修訂本於未來適用。

應用該等修訂本並無對本集團綜合財務報表構成影響。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註85Annual Report 2023年報2. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.2 Adoption of new and amended HKFRSs (Continued)Issued but not yet effective HKFRSs At the date of author isat ion of these consolidated f inancial statements, certain amended HKFRSs have been published but are not yet effective, and have not been adopted early by the Group.Amendments to HKFRS 10 and HKAS 28Sale or Contribution of Assets between an Investor and its Associate or Joint Venture3Amendments to HKFRS 16 Lease Liability in a Sale and Leaseback1Amendments to HKAS 1 Classification of Liabilities as Current or Non-current and related amendments to Hong Kong Interpretation 51Amendments to HKAS 1 Non-current Liabilities with Covenants1Amendments to HKAS 7 and HKFRS 7Supplier Finance Arrangements1Amendments to HKAS 21 Lack of Exchangeability21 Effective for annual periods beginning on or after 1 January 20242 Effective for annual periods beginning on or after 1 January 20253 Effective date not yet determinedThe directors anticipate that all of the pronouncements will be adopted in the Group’s accounting policy for the first period beginning on or after the effective date of the pronouncement. Information on amended HKFRSs that are expected to have impact on the Group’s accounting policies is provided below. Other amended HKFRSs are not expected to have a material impact on the Group’s consolidated financial statements.2.重大會計政策概要（續） 2.2採用新訂及經修訂香港財務報告準則（續）已頒佈但尚未生效的香港財務報告準則於此等綜合財務報表授權日期，若干經修訂香港財務報告準則已經頒佈但尚未生效，本集團亦無提早採納該等經修訂準則。

香港財務報告準則第10號及香港會計準則第28號（修訂本）投資者與其聯營公司或合營企業之間的資產出售或投入3香港財務報告準則第16號（修訂本）售後租回之租賃負債1香港會計準則第1號（修訂本）將負債分類為流動或非流動及對香港詮釋第5號的相關修訂1香港會計準則第1號（修訂本）附帶契諾的非流動負債1香港會計準則第7號及香港財務報告準則第7號（修訂本）供應商融資安排1香港會計準則第21號（修訂本）缺乏可交換性21於2024年1月1日或之後開始之年度期間生效2於2025年1月1日或之後開始之年度期間生效3生效日期尚未確定董事預期，所有聲明將於本集團於該等聲明生效日期或之後開始的首個期間的會計政策中採納。

預期經修訂香港財務報告準則的資料將對本集團會計政策造成的影響如下。

預期其他經修訂香港財務報告準則不會對本集團之綜合財務報表造成重大影響。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司862. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.3 Basis of consolidationThe consol idated f inancial statements incorporate the f inancial statements of the Company and all its subsidiaries made up to 31 December each year.Subsidiaries are entities controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. When assessing whether the Group has power over the entity, only substantive rights relating to the entity (held by the Group and others) are considered.The Group includes the income and expenses of a subsidiary in the consolidated financial statements from the date it gains control until the date when the Group ceases to control the subsidiary.Intra-group transactions, balances and unrealised gains and losses on transactions between group companies are eliminated in preparing the consolidated financial statements. Where unrealised losses on intra-group asset sales are reversed on consolidation, the underlying asset is also tested for impairment from the Group’s perspective. Amounts reported in the financial statements of subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.Non-controll ing interests represent the equity on a subsidiary not attributable directly or indirectly to the Company, and in respect of which the Group has not agreed any additional terms with the holders of those interests which would result in the Group as a whole having a contractual obligation in respect of those interests that meets the definition of a financial liability. For each business combination, the Group can elect to measure any non-controlling interests either at fair value or at their proportionate share of the subsidiary’s net identifiable assets.2.重大會計政策概要（續） 2.3合併基準綜合財務報表載有本公司及其所有附屬公司截至每年12月31日的財務報表。

附屬公司為本集團所控制的實體。

當本集團承受或享有參與實體所得的可變回報，且有能力透過其對實體的權力影響該等回報時，則本集團控制該實體。

於評估本集團對實體是否擁有權力時，僅考慮（由本集團及他人持有）與實體有關的實質權利。

本集團的綜合財務報表載有附屬公司自本集團取得其控制權當日起至失去其控制權當日止期間的收入及開支。

編製綜合財務報表時，集團內公司間交易、集團內公司間交易的結餘及未變現收益及虧損會予以對銷。

倘集團內公司間資產銷售的未變現虧損於綜合入賬時撥回，則相關資產亦從本集團的角度進行減值測試。

附屬公司財務報表的申報金額已作必要調整，以確保本集團採用的會計政策一致。

非控股權益是指並非由本公司直接或間接擁有於附屬公司的股權，本集團未有對非控股權益持有人同意任何符合金融負債定義的法定義務的額外條款。

本集團對各企業合併可以選擇按附屬公司的可認定淨資產的公平值或以其相應的比例計量任何非控股權益。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註87Annual Report 2023年報2. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.3 Basis of consolidation (Continued)N o n - c o n t r o l l i n g i n t e r e s t s a r e p r e s e n te d i n t h e consolidated statement of financial position within equity, separately from the equity attributable to the owners of the Company. Non-controlling interests in the results of the Group are presented on the face of the consolidated statement of profit or loss and other comprehensive income as an allocation of the total profit or loss and total comprehensive income for the year between non-controlling interests and the owners of the Company.Changes in the Group’s interests in subsidiaries that do not result in a loss of control are accounted for as equity transactions, whereby adjustments are made to the amounts of controlling interests within consolidated equity to reflect the change in relative interests, but no adjustments are made to goodwill and no gain or loss is recognised.In the Company’s statements of f inancial posit ion, subsidiaries are carried at cost less any impairment loss unless the subsidiary is held for sale or included in a disposal group. Cost is adjusted to reflect changes in consideration arising from contingent consideration amendments. Cost also includes direct attributable costs of investment.The results of subsidiaries are accounted for by the Company on the basis of div idends received and receivable at the end of the repor t ing per iod. A l l dividends whether received out of the investee’s pre or post-acquisition profits are recognised in the Company’s profit or loss.2.重大會計政策概要（續） 2.3合併基準（續）非控股權益在綜合財務狀況表的權益項目內區別於本公司擁有人應佔權益而單獨列示。

非控股權益應佔本集團的業績作為本年度損益及綜合全面收益總額在非控股權益及本公司擁有人之間分配，並於綜合損益表及綜合全面收益表中列示。

本集團於附屬公司的權益變動倘不會引致喪失控制權，則以權益交易入賬，並據此對綜合權益中控股權益的金額作調整，以反映相關權益的變動，惟不會調整商譽及確認盈虧。

除非附屬公司乃持作出售或計入出售組別，否則於本公司的財務狀況表中，附屬公司按成本扣除任何減值虧損列賬。

調整成本以反映或然代價修訂產生之代價變動。

成本亦包括投資直接應佔成本。

附屬公司的業績由本公司按報告期末已收及應收股息為基準入賬。

不論所收取股息是以投資對象的收購前或收購後溢利作出，全部股息均於本公司的損益中確認。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司882. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.4 Foreign currency translationThe consolidated f inancial statements is presented in RMB, which is also the functional currency of the Company.In the individual financial statements of the combined entities, foreign currency transactions are translated into the functional currency of the individual entity using the exchange rates prevailing at the dates of the transactions. At the reporting date, monetary assets and liabilities denominated in foreign currencies are translated at the foreign exchange rates rul ing at that date. Foreign exchange gains and losses resulting from the settlement of such transactions and from the reporting date retranslation of monetary assets and liabilities are recognised in the profit or loss.Non-monetary i tems carr ied at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated (i.e. only translated using the exchange rate at the transaction date). When a fair value gain or loss on a non-monetary item is recognised in profit or loss, any exchange component of that gain or loss is also recognised in profit or loss. When a fair value gain or loss on a non-monetary item is recognised in other comprehensive income, any exchange component of that gain or loss is also recognised in other comprehensive income.In the consolidated financial statements, all individual f inancial statements of foreign operations, originally presented in a currency dif ferent from the Group’s presentation currency, have been converted into RMB. Assets and liabilities have been translated into RMB at the closing rates at the reporting date. Income and expenses have been converted into the RMB at the exchange rates ruling at the transaction dates, or at the average rates over the reporting period provided that the exchange rates do not fluctuate significantly. Any di f ferences ar is ing f rom this procedure have been recognised in other comprehensive income and accumulated separately in the translation reserve in equity.2.重大會計政策概要（續） 2.4外幣換算綜合財務報表以人民幣呈列，人民幣本公司的功能貨幣。

於合併實體的獨立財務報表中，外幣交易乃按交易當日適用的匯率換算為個別實體的功能貨幣。

於報告日期，以外幣計值的貨幣資產及負債乃按該日期的匯率換算。

因結算該等交易及於報告日期重新換算的貨幣資產及負債所產生的外匯損益均於損益中確認。

以外幣計值且按公平值呈列的非貨幣項目乃按公平值釐定當日適用的匯率重新換算。

按歷史成本以外幣計量的非貨幣項目不作重新換算（即僅採用交易日期的匯率換算）。

當非貨幣項目的公平值損益於損益確認，該損益的任何兌換部分亦確認為損益。

當非貨幣項目的公平值損益在其他全面收益中確認時，該損益的任何交換部分都在其他全面收益中確認。

於綜合財務報表中，原以本集團呈報貨幣以外的貨幣呈列的海外業務的所有獨立財務報表均已換算為人民幣。

資產及負債已按報告日期的收市匯率換算為人民幣。

收入與支出按交易日適用的匯率，或按報告期間的平均匯率換算為人民幣（假設匯率並無重大波動）。

任何因此程序產生的差額已於其他全面收益中確認並於權益內的換算儲備單獨累計。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註89Annual Report 2023年報2. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.5 Property, plant and equipmentP r o p e r t y , p l a n t a n d e q u i p m e n t ( o t h e r t h a n construction-in-progress as described below and cost of right-of-use assets as described in Note 2.13) are initially recognised at acquisition cost (including any cost directly attributable to bringing the assets to the location and condition necessary for them to capable of operating in the manner intended by the Group’s management), and subsequently stated at cost less accumulated depreciation and impairment losses, if any.Construction in progress includes property, plant and equipment in the course of construction for production or for its own use purposes. Construction in progress is carried at cost less any recognised impairment loss. Costs include professional fees and, for quali fying assets, borrowing costs capitalised in accordance with the Group’s accounting policy (Note 2.18). Construction in progress is classified to the appropriate category of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.Depreciation on property, plant and equipment is provided to write off the cost less their residual values, if any, over their estimated useful lives, using the straight-line method, at the following rates per annum:Building 20 years or shorter of the lease termLeasehold improvements 5 years or shorter of the lease termPlant and machinery 5–12 yearsFurniture and fixtures 3–5 yearsMotor vehicles 5 yearsAccounting policy for depreciation of right-of-use assets is set out in Note 2.13.Est imates of residual values and useful l ives are reviewed, and adjusted if appropriate, at each reporting date.2.重大會計政策概要（續） 2.5物業、廠房及設備物業、廠房及設備（下文所述的在建工程除外及附註2.13所述的使用權資產成本除外）最初按收購成本確認（包括將資產移至使資產能夠按照本集團管理層的預期運作的必要地點及條件直接歸屬的任何成本），隨後按成本減去累計折舊及減值虧損後列示（如有）。

在建工程包括作生產或自用用途的在建物業、廠房及設備。

在建工程按成本扣除任何已確認減值虧損列賬。

成本包括專業費用及（就合資格資產而言）根據本集團會計政策資本化的借款成本（附註2.18）。

在建工程於落成及可供作擬定用途時分類至物業、廠房及設備的適當類別。

當資產可供作擬定用途時，該等資產開始按其他物業資產的相同基準折舊。

物業、廠房及設備折舊以直綫法於其估計可使用年期內按下列年率作出撥備，以撇銷成本減其剩餘價值（如有）：樓宇20年或租期（以較短者為準）租賃裝修5年或租期（以較短者為準）廠房及機器5至12年傢俱及固定裝置3至5年汽車5年使用權資產折舊的會計政策載於附註2.13。

估計剩餘價值及使用年期於各報告日期進行檢討及於適當時作出調整。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司902. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.5 Property, plant and equipment (Continued)The gain or loss arising on retirement or disposal is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the profit or loss.Subsequent costs are included in the asset’s carrying amount o r rec o gn i sed as a sepa ra te as se t , as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other costs, such as repairs and maintenance, are charged to the profit or loss during the financial period in which they are incurred.2.6 Investment propertiesInvestment properties are land and/or buildings which are owned or held under a leasehold interest (see Note 2.13) to earn rental income and/or for capital appreciation. These include land held for a currently undetermined future use and property that is being constructed or developed for future use as investment property.Suc h p rope r t i es a re measured in i t i a l l y a t c os t . Subsequent to initial recognition, investment properties are stated at cost less accumulated depreciation and accumulated impairment losses, if any. Depreciation is calculated on the straight-line basis over the expected useful life and after taking into account of their estimated residual value. The principal expected useful life for this purpose are as follows:Building 20 yearsAny gains or losses on the retirement or disposal of an investment property are recognised in the consolidated statement of profit or loss and other comprehensive income in the year of the retirement or disposal.2.重大會計政策概要（續） 2.5物業、廠房及設備（續）報廢或出售所產生的收益或虧損按出售所得款項與相關資產的賬面值之間的差額釐定，並於損益內確認。

後續成本計入資產的賬面值或於適當時確認為一項個別資產，前提條件為與該項目相關的未來經濟利益極有可能流入本集團及該項目成本能可靠計量。

終止確認已重置部分的賬面值。

所有其他成本（如維修及保養成本）於該等成本產生的財務期間自損益內扣除。

2.6投資物業投資物業指根據租賃權益（見附註2.13）擁有或持作賺取租金收入及╱或資本增值的土地及╱或樓宇，包括未確定未來用途的持有土地以及正在建造或發展以供日後作投資物業用途的物業。

該等物業按成本初步計量。

初步確認之後，投資物業按成本減累計折舊及累計減值虧損（如有）列賬。

折舊乃以直綫法按預期可使用年期，並經計及其估計剩餘價值計算。

就此而言，主要的預期可使用年期如下：樓宇20年報廢或出售投資物業的任何收益或虧損於報廢或出售年度在綜合損益及其他全面收益表當中予以確認。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註91Annual Report 2023年報2. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.7 Intangible assets (other than goodwill) and research and development activitiesIntangible assets (other than goodwill)Acquired intangible assets are recognised initially at cost. After initial recognition, intangible assets with finite useful lives are carried at cost less accumulated amortisation and any accumulated impairment losses. Amortisation for intangible assets with finite useful lives is provided on straight-line basis over their estimated useful lives. Amortisation commences when the intangible assets are available for use. The following useful lives are applied:Trademarks 10 yearsComputer software and operation systems5 yearsCapitalised development costs10 yearsIntangib le assets wi th indef in i te useful l ives ( i .e. trademarks) are carried at cost less any subsequent accumulated impairment losses.The assets’ amortisation methods and useful lives are reviewed, and adjusted if appropriate, at each reporting date.Intangible assets, with finite and indefinite useful lives, are tested for impairment as described below in Note 2.19.Research and development costsCosts associated with research activities are expensed in profit or loss as they occur. Costs that are directly attributable to development activities are recognised as intangible assets provided they meet the following recognition requirements:— demons t ra t i on o f techn ic a l feas ib i l i t y o f t he prospective product for internal use or sale;— there is intention to complete the intangible asset and use or sell it;2.重大會計政策概要（續） 2.7無形資產（不包括商譽）及研發活動無形資產（不包括商譽）已收購無形資產初步按成本值確認。

於初步確認後，具有限可使用年期的無形資產按成本減累計攤銷及任何累計減值虧損列賬。

具有限可使用年期的無形資產於估計可使用年期內以直線法攤銷。

無形資產於可供使用時開始攤銷。

可使用年期的應用如下：商標10年電腦軟件及運營系統5年資本化開發成本10年具無限可使用年期的無形資產（即商標）按成本減任何後續累計減值虧損列賬。

資產攤銷法及可使用年期於各報告日期檢討並於適當時作出調整。

具有限及無限可使用年期的無形資產按下文附註2.19所述進行減值測試。

研發成本與研究活動有關的成本乃於其產生時於損益內支銷。

直接歸屬於開發活動的成本乃確認為無形資產，惟其須符合以下確認規定：—證明開發該供內部使用或銷售的準產品技術上可行；—有意完成該無形資產並加以使用或將其出售；NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司922. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.7 Intangible assets (other than goodwill) and research and development activities (Continued)Research and development costs (Continued)— the Group’s ability to use or sell the intangible asset is demonstrated;— the intangible asset will generate probable economic benefits through internal use or sale;— sufficient technical, financial and other resources are available for completion; and— the expenditure attributable to the intangible asset can be reliably measured.Di rec t costs inc lude employee costs incur red on development activities along with an appropriate portion of relevant overheads. The costs of development of internally generated sof tware, products or knowhow that meet the above recognition criteria are recognised as intangible assets. They are subject to the same subsequent measurement method as acquired intangible assets.All other development costs are expensed as incurred.2.8 Financial instrumentsRecognition and derecognitionFinancial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the financial instrument.Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all of its risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.2.重大會計政策概要（續） 2.7無形資產（不包括商譽）及研發活動（續） 研發成本（續）—證明本集團有能力使用或出售該無形資產；—透過內部使用或銷售該無形資產將產生可能的經濟利益；—具備充足技術、財務及其他資源以供完成；及—該無形資產的應佔開支能可靠地計量。

直接成本包括因開發活動產生的僱員成本連同有關日常開支的適當部分。

內部生成的軟件、產品或技術知識並符合上述確認標準的開發成本均確認為無形資產，並採用與所收購無形資產相同的後續計量方法。

所有其他開發成本均於產生時支銷。

2.8金融工具確認及終止確認倘本集團成為金融工具合約條文的訂約方，則確認金融資產及金融負債。

當收取金融資產的現金流量的合約權利屆滿，或金融資產及金融資產的絕大部分風險及回報已被轉移時，則終止確認金融資產。

金融負債於其消除、解除、註銷或到期時終止確認。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註93Annual Report 2023年報2. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.8 Financial instruments (Continued)Financial assetsClassification and initial measurement of financial assetsExcept for those trade receivables that do not contain a significant financing component and are measured at the transaction price in accordance with HKFRS 15, all financial assets are initially measured at fair value, in case of a financial asset not at fair value through profit or loss (“FVTPL”), plus transaction costs that are directly attributable to the acquisition of the financial asset.Financ ia l assets are c lassi f ied into the fo l lowing categories:— amortised cost;— FVTPL; or— fair value through other comprehensive income (“FVOCI”).The classif ication is determined by both the entity’s business model for managing the financial asset; and the contractual cash flow characteristics of the financial asset.All income and expenses relating to f inancial assets that are recognised in profit or loss are presented within f inance costs, or other income, except for expected credit losses (“ECL”) of trade and bills receivables which is presented within administrative and other operating expenses.2.重大會計政策概要（續） 2.8金融工具（續）金融資產金融資產的分類及初步計量除該等不包含重大融資成分且按照香港財務報告準則第15號按交易價格計量的貿易應收款項外，所有金融資產初步按公平值計量，倘如金融資產並非按公平值計入損益（「按公平值計入損益」），加上直接歸屬於收購該金融資產的交易成本。

金融資產分為以下類別：—攤銷成本；—按公平值計入損益；或—按公平值計入其他全面收益（「按公平值計入其他全面收益」）。

分類乃根據實體管理金融資產的業務模式；及金融資產的合約現金流量特徵釐定。

與於損益中確認的金融資產有關的所有收入及開支於財務成本或其他收入內呈列，惟於行政及其他經營開支內呈列的貿易應收款項及應收票據的預期信貸虧損（「預期信貸虧損」）除外。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司942. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.8 Financial instruments (Continued)Subsequent measurement of financial assetsDebt investmentsFinancial assets at amortised costFinancial assets are measured at amor tised cost if the assets meet the following conditions (and are not designated as FVTPL):— they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows; and— the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding.After initial recognition, these are measured at amortised cost using the effective interest method. Interest income from these financial assets is included in other income in profit or loss. Discounting is omitted where the effect of discounting is immaterial. The Group’s trade and other receivables, amounts due from related parties and cash and cash equivalents fall into this category of financial instruments.Financial assets at FVTPLFinancial assets that are held within a different business model other than “hold to collect” or “hold to collect and sell’ are categorised at FVTPL. Further, irrespective of business model, financial assets whose contractual cash flows are not solely payments of principal and interest are accounted for at FVTPL. All derivative f inancial instruments fall into this category, except for those designated and effective as hedging instruments, for which the hedge accounting requirements under HKFRS 9 apply.2.重大會計政策概要（續） 2.8金融工具（續）金融資產的後續計量債務投資按攤銷成本計量的金融資產倘金融資產符合以下條件（且並非指定為按公平值計入損益），則該資產按攤銷成本計量：—以持有金融資產及收取合約現金流量為目的的經營模式下持有的金融資產；及—金融資產的合約條款產生的現金流量純粹為支付本金及未償還本金的利息。

於初始確認後，該等金融資產使用實際利率法按攤銷成本計量。

來自該等金融資產的利息收入計入損益中的其他收入。

倘貼現影響微乎其微，則貼現可忽略不計。

本集團的貿易及其他應收款項、應收關聯方款項以及現金及現金等價物均屬於此類金融工具。

按公平值計入損益之金融資產於「持作收取」或「持作收取及出售」以外之不同業務模型持有之金融資產分類為按公平值計入損益。

此外，不論何種業務模型，合約現金流並非僅為本金及利息付款之金融資產入賬列為按公平值計入損益。

所有衍生財務工具屬於此類別，惟指定及有效作為對沖工具之財務工具除外，該等工具乃應用香港財務報告準則第9號下之對沖會計處理規定。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註95Annual Report 2023年報2. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.8 Financial instruments (Continued)Financial liabilitiesClassification and measurement of financial liabilitiesThe Group’s financial liabilities include bank borrowings, other borrowing, lease liabilities, trade and other payables and discounted bills financing.Financial liabilities (other than lease liabilities) are initially measured at fair value, and, where applicable, adjusted for transaction costs.Subsequently, f inancial l iabi l i t ies (other than lease liabilities) are measured at amortised cost using the effective interest method.All interest-related charges are included within finance costs.Accounting policies of lease liabilities are set out in Note 2.13.BorrowingsBorrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.Other financial liabilitiesOther financial liabilities are recognised initially at their fair value and subsequently measured at amortised cost, using the effective interest method.2.重大會計政策概要（續） 2.8金融工具（續）金融負債金融負債的分類及計量本集團金融負債包括銀行借款、其他借款、租賃負債、貿易及其他應付款項及貼現票據融資。

金融負債（租賃負債除外）初步按公平值計量，及（倘適用）就交易成本進行調整。

隨後，金融負債（租賃負債除外）使用實際利率法按攤銷成本計量。

所有利息相關費用均計入財務成本。

租賃負債的會計政策載於附註2.13。

借款借款初步按公平值扣除產生的交易成本確認。

借款其後按攤銷成本列賬；借款所得款項（扣除交易成本）與贖回價值之間的任何差額按實際利率法於借款期內於損益中確認。

除非本集團有無條件權利將負債的償還期限遞延至報告日期後最少十二個月，否則借款分類為流動負債。

其他金融負債其他金融負債初步按其公平值確認，隨後採用實際利率法按攤銷成本計量。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司962. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.9 Impairment of financial assetsHKFRS 9’s impairment requirements use forward-looking information to recognise ECL — the “ECL model”. Instruments within the scope included loans and other debt-type financial assets measured at amortised cost and trade receivables recognised and measured under HKFRS 15.The Group considers a broader range of information when assessing credit risk and measuring ECL, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.In applying this forward-looking approach, a distinction is made between:— f inancial instruments that have not deteriorated significantly in credit quality since initial recognition or that have low credit risk (“Stage 1”) and— f inanc ia l i ns t r uments t ha t have de te r i o ra ted significantly in credit quality since initial recognition and whose credit risk is not low (“Stage 2”).“Stage 3” would cover financial assets that have objective evidence of impairment at the reporting date.“12-month ECL” are recognised for the Stage 1 category while “ lifetime ECL” are recognised for the Stage 2 category.M e a s u r e m e n t o f t h e ECL i s d e t e r m i n e d b y a probability-weighted estimate of credit losses over the expected life of the financial instrument.2.重大會計政策概要（續） 2.9金融資產減值香港財務報告準則第9號的減值規定採用更具前瞻性的資料確認預期信貸虧損—「預期信貸虧損模式」。

屬於該範疇的工具包括按攤銷成本計量的貸款及其他債務類金融資產以及根據香港財務報告準則第15號確認及計量的貿易應收款項。

本集團在評估信貸風險及計量預期信貸虧損時考慮更廣泛的資料，包括過往事件、當前狀況、影響工具未來現金流量預期可收回性的合理且言之有據的預測。

於應用該前瞻性方法時，須對下列各項作出區別：—自初始確認以來信貸質量未顯著惡化或信貸風險較低的金融工具（「第一階段」）；及—自初始確認以來信貸質量顯著惡化且信貸風險不低的金融工具（「第二階段」）。

「第三階段」將涵蓋於報告日期具有客觀減值證據的金融資產。

「12個月預期信貸虧損」於第一階段類別內確認，而「全期預期信貸虧損」於第二階段類別內確認。

預期信貸虧損的計量於金融工具預計存續期內按信貸虧損的概率加權估計釐定。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註97Annual Report 2023年報2. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.9 Impairment of financial assets (Continued)Trade receivablesFor trade receivables, the Group applies a simplif ied approach in calculating ECL and recognises a loss allowance based on lifetime ECL at each reporting date. These are the expected shortfalls in contractual cash flows, considering the potential for default at any point during the life of the financial assets. In calculating the ECL, the Group has established a provision matrix with appropriate groupings and/or individually assessed for debtors with significant balances, that is based on its historical credit loss experience and external indicators, adjusted for forward- looking factors specif ic to the debtors and the economic environment.To measure the ECL, trade receivables have been grouped based on shared credit risk characteristics and the days past due.Other financial assets measured at amortised costThe Group measures the loss al lowance for other receivables equal to 12-month ECL, unless when there has been a significant increase in credit risk since initial recognition, the Group recognises lifetime ECL. The assessment of whether lifetime ECL should be recognised is based on significant increase in the likelihood of risk of default occurring since initial recognition.In assessing whether the credit r isk has increased significantly since initial recognition, the Group compares the risk of default occurring on the financial assets at the reporting date with the risk of default occurring on the financial assets at the date of initial recognition. In making this assessment, the Group considers both quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available without undue cost or effort.2.重大會計政策概要（續） 2.9金融資產減值（續）貿易應收款項就貿易應收款項而言，本集團採用簡化方法計算預期信貸虧損，並於各報告日期基於全期預期信貸虧損確認虧損撥備。

考慮到金融資產存續期內任何時間點均可能出現違約事件，該等為合約現金流量的預期缺口。

於計算預期信貸虧損時，本集團已用適當的分類及╱或對有重大餘額的債務人進行單獨評估，以建立基於其過往信貸虧損經驗及外部指標的撥備矩陣，並根據債務人特定前瞻性因素及經濟環境作調整。

於計量預期信貸虧損時，貿易應收款項已根據共同信貸風險特徵及逾期天數分類。

按攤銷成本計量的其他金融資產本集團按相等於12個月預期信貸虧損計量其他應收款項的虧損撥備，除非自初始確認以來信貸風險大幅增加，則本集團確認全期預期信貸虧損。

評估應否確認全期預期信貸虧損乃基於自初始確認以來發生違約風險的可能性的大幅增加。

於評估信貸風險是否自初始確認以來已大幅增加時，本集團比較金融資產於報告日期出現違約的風險與該金融資產於初始確認日期出現違約的風險。

作此評估時，本集團會考慮合理及有理據的定量及定性資料，包括歷史經驗及毋須花費過度成本或精力即可獲得的前瞻性資料。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司982. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.9 Impairment of financial assets (Continued)Other financial assets measured at amortised cost (Continued)In par ticular, the following information is taken into account when assess ing whether c redi t r isk has increased significantly:— an actual or expected significant deterioration in the financial instrument’s external (if available) or internal credit rating;— significant deterioration in external market indicators of credit risk, e.g. a significant increase in the credit spread, the credit default swap prices for the debtor;— existing or forecast adverse changes in regulatory, bus ine s s , f i nanc ia l , e c o no mic c o nd i t i o ns o r technology environment that are expected to cause a significant decrease in the debtor’s ability to meet its debt obligations; and— an actual or expected significant deterioration in the operating results of the debtor.Irrespective of the outcome of the above assessment, the Group presumes that the credit risk has increased significantly since initial recognition when contractual payments are more than 30 days past due, unless the Group has reasonable and supportable information that demonstrates otherwise.Despite the aforegoing, the Group assumes that the credit r isk on a debt instrument has not increased significantly since initial recognition if the debt instrument is determined to have low credit risk at the end of each reporting period. A debt instrument is determined to have low credit risk if it has a low risk of default, the borrower has strong capacity to meet its contractual cash flow obligations in the near term and adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its contractual cash flow obligations.2.重大會計政策概要（續） 2.9金融資產減值（續）按攤銷成本計量的其他金融資產（續） 尤其是，評估信貸風險是否大幅增加時會考慮下列資料：—金融工具外部（如有）或內部信貸評級的實際或預期重大惡化；—信貸風險的外部市場指標的重大惡化，例如信貸息差、債務人的信貸違約掉期價大幅增加；—預期將導致債務人履行其債務責任的能力大幅下降的監管、業務、財務、經濟狀況或技術環境的現有或預測不利變動；及—債務人經營業績的實際或預期重大惡化。

不論上述評估的結果如何，本集團認為，當合約付款逾期超過30天，則自初始確認以來信貸風險已大幅增加，除非本集團有合理有據的資料證明。

儘管如此，倘於各報告期末釐定債務工具的信貸風險較低，則本集團假設該債務工具的信貸風險自初始確認以來並無顯著增加。

倘該債務工具違約風險較低、借款人近期具充分償付合約現金流量負債的能力及長期而言經濟及業務狀況的不利變動未必降低借款人償付合約的現金流量負債的能力，債務工具被釐定為具有較低的信貸風險。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註99Annual Report 2023年報2. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.9 Impairment of financial assets (Continued)Other financial assets measured at amortised cost (Continued)For internal credit risk management, the Group considers an event of default occurs when (i) information developed internally or obtained from external sources indicates that the debtor is unlikely to pay its creditors, including the Group, in full (without taking into account any collateral held by the Group); (ii) the financial asset is 90 days past due.Detai led analysis of the ECL assessment of trade receivables and other f inancial assets measured at amortised cost are set out in Note 36.5.2.10 InventoriesInventories are carried at the lower of cost and net realisable value. Cost, which comprises all cost of purchase and, where applicable, other costs that have been incurred in bringing the inventories to their present location and condition, and is determined by using the weighted average method. Net realisable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and applicable selling expenses.2.11 Cash and cash equivalentsCash and cash equivalents include cash at bank and in hand, demand deposits with banks and short term highly liquid investments with original maturities of three months or less that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.2.重大會計政策概要（續） 2.9金融資產減值（續）按攤銷成本計量的其他金融資產（續） 就內部信貸風險管理而言，本集團認為，違約事件在(i)內部制訂或來自外界來源的資料顯示債務人不大可能悉數向債權人（包括本集團）還款（未計及本集團所持任何抵押品）時；及(ii)金融資產已逾期90天時發生。

有關貿易應收款項及按攤銷成本計量的其他金融資產的預期信貸虧損評估的詳細分析載於附註36.5。

2.10存貨存貨以成本與可變現淨值兩者中較低者列賬。

成本包括所有購買成本及（倘適用）將存貨移至現址及達致現況而產生的其他成本，並採用加權平均法釐定。

可變現淨值為日常營業過程中的估計售價減估計完工成本及適用銷售開支。

2.11現金及現金等價物現金及現金等價物包括銀行存款及手頭現金、銀行活期存款及原定到期日為三個月或以下、可隨時兌換為已知數額現金且價值變動風險較低的短期高度流動性投資。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司1002. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.12 Contract liabilitiesA contract liability is recognised when the customer pays consideration before the Group recognises the related revenue (see Note 2.16). A contract liability would also be recognised if the Group has an unconditional right to receive consideration before the Group recognises the related revenue. In such cases, a corresponding receivable would also be recognised (see Note 2.8).2.13 LeaseDefinition of a leaseAt inception of a contract, the Group considers whether a contract is, or contains a lease. A lease is defined as ‘a contract, or part of a contract, that conveys the right to use an identified asset (the underlying asset) for a period of time in exchange for consideration’. To apply this definition, the Group assesses whether the contract meets three key evaluations which are whether:— the contracts contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being identified at the time the asset is made available to the Group;— the Group has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of use, considering its rights within the defined scope of the contract; and— the Group has the right to direct the use of the identified asset throughout the period of use. The Group assess whether it has the right to direct ‘how and for what purpose’ the asset is used throughout the period of use.2.重大會計政策概要（續） 2.12合約負債合約負債乃本集團確認相關收益前在客戶支付代價時確認（見附註2.16)。

倘本集團在本集團確認相關收益前有無條件收取代價的權利，則亦確認合約負債。

在此情況下，亦會確認相應應收款項（見附註2.8)。

2.13租賃租賃定義於合約訂立時，本集團會考慮一項合約是否或有無包含租賃。

租賃乃定義為一項合約或合約的一部分，給予權利在一段時間內使用已識別資產（相關資產）以換取代價。

為應用該定義，本集團評估合約是否符合三項主要評估：—合約是否包含已識別資產，其於合約中明確識別或透過於資產可供本集團使用時識別以暗示方式指定；—本集團是否有權於整個使用期取得使用已識別資產的絕大部分經濟利益，考慮本集團於合約界定的範圍內的權利；及—本集團是否有權於整個使用期內主導使用已識別資產。

本集團評估其是否有權於整個使用期主導資產的「使用方式及目的」。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註101Annual Report 2023年報2. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.13 Lease (Continued)Measurement and recognition of leases as a lesseeAt lease commencement date, the Group recognises a right-of-use asset and a lease liability on the consolidated statement of financial position. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs incurred by the Group, an estimate of any costs to dismantle and remove the underlying asset at the end of the lease, and any lease payments made in advance of the lease commencement date (net of any lease incentives received).The Group depreciates the r ight-of-use asset on a straight-line basis from the lease commencement date to the earlier of the end of the useful life of the right-of-use assets or the end of the lease term unless the Group is reasonably certain to obtain ownership at the end of the lease term. The Group also assesses the right-of-use asset for impairment when such indicator exists.At the commencement date, the Group measures the lease liability at the present value of the lease payments unpaid at that date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate.Lease payments included in the measurement of the lease liability are made up of fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable payments based on an index or rate, and amounts expected to be payable under a residual value guarantee.Subsequent to initial measurement, the liability will be reduced for lease payments made and increased for interest cost on the lease liability. It is remeasured to reflect any reassessment or lease modification, or if there are changes in in-substance fixed payments.2.重大會計政策概要（續） 2.13租賃（續）作為承租人計量及確認租賃於租賃開始日期，本集團於綜合財務狀況報表確認使用權資產及租賃負債。

使用權資產按成本計量，成本由租賃負債初始計量、本集團產生任何初始直接成本、任何於租賃屆滿時拆卸及移除相關資產的成本估計及任何於租賃開始日期前作出的預付租賃款項（減任何已收取的租賃優惠）組成。

本集團將使用權資產由租賃開始日期至使用權資產使用年期完結前或租賃年期屆滿（除本集團合理肯定於租賃年期屆滿時取得擁有權外）時（以較早者為準）按直綫法折舊。

本集團亦於該等指標出現時評估使用權資產減值。

於開始日期，本集團按當日未支付租賃付款之現值計量租賃負債，並使用租賃中隱含的利率予以貼現，或倘該利率不容易釐定，則採用本集團的增量借賃利率予以貼現。

計量租賃負債計入的租賃付款為固定付款（包括實物固定付款）減任何應收租賃優惠、按指數或價格計量的可變付款及根據剩餘價值保證應付的預期金額。

於初始計量後，負債將按已付租賃付款減少，並按租賃負債利息成本增加。

其將重新計量為反映任何重新評估或租賃修訂、或倘實物固定付款出現變動。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司1022. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.13 Lease (Continued)Measurement and recognition of leases as a lessee (Continued)For lease modification that is not accounted for as a separate lease, the Group remeasures the lease liability based on the lease term of the modif ied lease by discounting the revised lease payments using a revised discount rate at the effective date of modification. The only exception is any rent concessions which arose as a direct consequence of the COVID-19 pandemic and which satisfied the conditions set out in paragraph 46B of HKFRS 16 “Leases”. In such cases, the Group took advantage of the practical expedient set out in paragraph 46A of HKFRS 16 and recognised the change in consideration as if it were not a lease modification.When the lease is remeasured, the corresponding adjustment is reflected in the right-of-use asset, or profit and loss if the right-of-use asset is already reduced to zero.The Group has elected to account for short-term leases using the practical expedients. Instead of recognising a right-of-use asset and lease liability, the payments in relation to these leases are recognised as an expense in profit or loss on a straight-line basis over the lease term. Short-term leases are leases with a lease term of 12 month or less.Right-of-use assets that do not meet the definition of investment property have been included in property, plant and equipment. The prepaid lease payments for leasehold land are presented as “land lease prepayment” under non-current assets.Refundable rental deposits paid are accounted for under HKFRS 9 and initially measured at fair value. Adjustments to fair value at initial recognition are considered as additional lease payments and included in the cost of right-of-use assets.2.重大會計政策概要（續） 2.13租賃（續）作為承租人計量及確認租賃（續） 就未作為單獨租賃入賬的租賃修改而言，本集團按透過使用修改生效日期的經修訂貼現率貼現經修訂租賃付款的經修改租賃的租期重新計量租賃負債。

唯一的例外是因新型冠狀病毒疫情而直接產生的任何租金優惠，而其符合香港財務報告準則第16號「租賃」第46B段所載的條件。

在該等情況下，本集團利用香港財務報告準則第16號第46A段所載的實際權宜方法，確認代價變動，猶如其並非租賃修改。

當租賃重新計量時，相關的調整將反映於使用權資產，或倘使用權資產已減至零時於損益中反映。

本集團選擇使用可行權宜處理短期租賃入賬。

有關該等租賃的付款於租期內按直線法於損益中確認為開支，而非確認使用權資產及租賃負債。

短期租賃為租期為12個月或以下的租賃。

不符合投資物業定義的使用權資產已計入物業、廠房及設備。

租賃土地的預付租賃付款於非流動資產項下呈列為「土地租賃預付款項」。

已支付的可退還租賃按金根據香港財務報告準則第9號入賬並按公平值初始計量。

對初始確認的公平值作出的調整被視為額外租賃付款並計入使用權資產成本。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註103Annual Report 2023年報2. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.13 Lease (Continued)Measurement and recognition of leases as a lessorAs a lessor, the Group classifies its leases as either operating or finance leases.A lease is classified as a finance lease if it transfers substantially all the r isks and rewards incidental to ownership of the underlying asset, and classified as an operating lease if it does not.The Group also earns rental income from operating leases of its investment properties. Rental income is recognised on a straight-line basis over the term of the lease.For a transfer that does not satisfy requirements as a sale in accordance with HKFRS 15, the transaction is in substance a financing arrangement under HKFRS 9. Therefore, the Group as a seller-lessee accounts for the proceeds received as “other borrowings” within the scope of HKFRS 9.2.14 Provisions and contingent liabilitiesProvisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Where the time value of money is material, provis ions are stated at the present value of the expenditure expected to settle the obligation.All provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.2.重大會計政策概要（續） 2.13租賃（續）作為出租人計量及確認租賃作為出租人，本集團將其租賃分類為經營租賃或融資租賃。

當租賃轉移相關資產擁有權附帶的絕大部分風險及回報時，則該租賃分類為融資租賃；否則分類為經營租賃。

本集團通過其投資物業的經營租賃賺取租金收入。

租金收入按租期以直線法予以確認。

就不符合香港財務報告準則第15號銷售規定的轉讓而言，交易實質為香港財務報告準則第9號項下的融資安排。

因此，本集團作為賣方—承租人所收取的所得款項符合香港財務報告準則第9號的「其他借款」。

2.14撥備及或然負債倘本集團因過往事件而承擔現時責任（法定或推定），而履行該責任很可能需要有經濟利益的流出，且能可靠地估計有關責任的金額，則確認撥備。

倘金額的時間價值重大，則撥備乃按預期履行責任所需開支的現值列賬。

所有撥備乃於各報告日期審核並作出調整以反映目前最佳估計。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司1042. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.14 Provisions and contingent liabilities (Continued)Where it is not probable that an outflow of economic benef its will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more future uncertain events not wholly within the control of the Group, are also disclosed as contingent liabilities unless the probability of outflow of economic benefits is remote.2.15 Share capitalOrdinary shares are classified as equity. Share capital is recognised at the amount of consideration of shares issued, after deducting any transaction costs associated with the issuing of shares (net of any related income tax benefit) to the extent they are incremental costs directly attributable to the equity transaction.2.16 Revenue recognitionRevenue is recognised to depict the transfer of promised goods and services to customers in an amount that reflect the consideration to which the Group expects to be entitled in exchange for those goods and services. Specially, the Group uses a 5-step approach for revenue recognition.Step 1: Identify the contract(s) with a customerStep 2: Identify the performance obligations in the contractStep 3: Determine the transaction priceStep 4: A l l o c a te t h e t r a n s ac t i o n p r i c e t o t h e performance obligations in the contractStep 5: Recognise revenue when (or as) the entity satisfies a performance obligation2.重大會計政策概要（續） 2.14撥備及或然負債（續） 倘經濟利益流出的可能性不大，或金額無法可靠估計，該責任乃披露為或然負債，除非經濟利益流出的可能性極低則另作別論。

除非經濟利益流出的可能性極低，否則視乎某宗或多宗並非完全在本集團控制範圍內的未來事件是否發生方可確定是否存在的潛在責任，亦會披露為或然負債。

2.15股本普通股乃分類為權益。

倘交易成本為股本交易直接應佔的遞增成本，則股本按已發行股份的代價金額確認，當中扣除與發行股份相關的任何交易成本（扣除任何相關所得稅利益）。

2.16收益確認收益乃確認以說明向客戶轉讓已承諾貨品及服務，其金額反映本集團預期就交換該等貨品及服務而有權獲得的代價。

具體而言，本集團採用5步法進行收益確認。

第1步：識別與客戶的合約第2步：識別合約中的履約責任第3步：釐定交易價第4步：就合約中的履約責任分配交易價第5步：當（或在）實體達成履約責任時確認收益NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註105Annual Report 2023年報2. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.16 Revenue recognition (Continued)T he G roup rec o gn i ses revenue w hen (o r as) a performance obligation is satisfied, i.e. when “control” of the goods or services under lying the par t icular performance obligation is transferred to the customer.Control of the goods or services may be transferred over time or at a point in time. Control of the goods or services is transferred over time if:— the customer simultaneously receives and consumes the benefits provided by the entity’s performance as the Group performs;— the Group’s performance creates and enhances an asset that customer controls as the Group performs; or— the Group’s performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date.If control of the goods or services transfers over time, revenue is recognised over the period of the contract by reference to the progress toward complete satisfaction of that performance obligation. Otherwise, revenue is recognised at a point in time when the customer obtains control of the goods or services.Revenue from sales of papermaking felts products are recognised at a point in time when the legal title of the finished good is transferred and the Group has present right to payment and the collection of the consideration is probable. This is usually taken as the time when the goods are delivered and the customer has accepted the goods.Sales-related warranties associated with papermaking felts cannot be purchased separately and are served as an assurance that the products sold comply with ag reed - upon spec i f i c a t i ons ( i .e . assuranc e - t ype war rant ies). According ly, the Group accounts for warranties in accordance with HKAS 37 “Provisions, Contingent Liabilities and Contingent Assets”.2.重大會計政策概要（續） 2.16收益確認（續）當（或在）達成履約責任時，即當特定履約責任相關的貨品或服務的「控制權」轉移予客戶時，本集團即確認收益。

對貨品或服務的控制權可隨時間或於某時間點轉移。

倘出現以下情況，貨品或服務的控制權將隨時間轉移：—客戶於本集團履約時同時接受及使用實體履約所提供的利益；—於本集團履約時創造及加強客戶所控制的資產；或—當本集團履約時並無創造可由本集團另作他用的資產，且本集團對迄今完成的履約付款具有可強制執行的權利。

倘對貨品或服務的控制權隨時間轉移，則收益乃參照履約責任圓滿完成的進度於合約期間確認。

否則，收益於客戶獲得對貨品或服務的控制權的時間點確認。

銷售造紙毛毯產品的收益於轉移成品的法定所有權的時間點，且本集團擁有收取款項之現有權利並極有可能收取代價時確認。

此通常被視為貨品交付及客戶接收貨品的時間。

與造紙毛毯有關的銷售相關保養不能單獨購買，並作為所售產品符合商定規格（即保證型保養）的保證。

因此，本集團根據香港會計準則第37號「撥備、或然負債及或然資產」入賬列作擔保。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司1062. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.16 Revenue recognition (Continued)Rental income from let t ing the Group’s investment property is recognised on a straight-line basis over the lease term.Interest income is recognised on a time proportion basis using the effective interest rate method.2.17 Government grantsGrants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions. Government grants are deferred and recognised in profit or loss over the period necessary to match them with the costs that the grants are intended to compensate. Government grants relating to the purchase of assets are deducted from the carrying amount of the asset and consequently are effectively recognised in profit or loss over the useful life of the asset by way of reduced depreciation expense.Government grants relating to income is presented in gross under “Other income” in the consolidated statement of profit or loss and other comprehensive income.2.18 Borrowing costsBorrowing costs incurred, net of any investment income earned on the temporary investment of the specif ic borrowings, for the acquisition, construction or production of any qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use. A qualifying asset is an asset which necessarily takes a substantial period of time to get ready for its intended use or sale. Other borrowing costs are expensed when incurred.Borrowing costs are capitalised as part of the cost of a qualifying asset when expenditure for the asset is being incurred, borrowing costs are being incurred and activities that are necessary to prepare the asset for its intended use or sale are being undertaken. Capitalisation of borrowing costs ceases when substantially all the activities necessary to prepare the qualifying asset for its intended use or sale are complete.2.重大會計政策概要（續） 2.16收益確認（續）租賃本集團投資物業所得的租金收入按租期以直線法予以確認。

利息收入使用實際利率法按時間比例確認。

2.17政府撥款倘能夠合理地保證政府撥款將可收取，且本集團將遵守所有附帶條件，來自政府的撥款按其公平值確認。

政府撥款遞延入賬，並按擬補償的成本配合其所需期間於損益確認。

有關購買資產的政府撥款從資產的賬面金額中扣除，因此通過減少折舊開支在資產的使用年限內於損益中有效確認。

與收入相關的政府撥款乃於綜合損益及其他全面收益表內「其他收入」項內合計呈列。

2.18借款成本收購、建設或製造任何合資格資產所產生的借款成本（扣除於特定借款暫時投資所得的任何投資收入），於完成建設及將資產達致擬定用途所需時間期限內資本化。

合資格資產為需要長時間達到擬定用途或銷售狀況的資產。

其他借貸成本於產生時支銷。

借款成本作為合資格資產成本的一部分，於資產產生開支、產生借款成本及使資產投入擬定用途或銷售所需的準備工作進行期間資本化。

在使合資格資產投入擬定用途或銷售所需的絕大部分準備工作完成後，不再將借款成本資本化。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註107Annual Report 2023年報2. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.19 Impairment of non-financial assetsProperty, plant and equipment (including right-of-use assets), investment property, intangible assets, land lease prepayment and investments in subsidiaries in the Company’s statements of financial position are subject to impairment testing. Intangible assets with indefinite useful lives and that are not yet available for use are tested for impairment at least annually, irrespective of whether there is any indication that they are impaired. Others are tested for impairment whenever there are indications that the asset’s carrying amount may not be recoverable.An impairment loss is recognised as an expense immediately for the amount by which the asset’s carrying amount exceeds its recoverable amount. Recoverable amount is the higher of fair value, ref lecting market conditions less costs of disposal, and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessment of time value of money and the risk specific to the asset.For the purposes of assessing impairment, where an asset does not generate cash inflows largely independent from those other assets, the recoverable amount is determined for the smallest group of assets that generate cash inflows independently (i.e. a cash-generating unit). As a result, some assets are tested individually for impairment and some are tested at cash-generating unit level.Impairment loss is charged pro rata to the assets in the cash generating unit, except that the carrying value of an asset will not be reduced below its individual fair value less cost of disposal, or value in use, if determinable.An impairment loss is reversed if there has been a favourable change in the estimates used to determine the asset’s recoverable amount and only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.2.重大會計政策概要（續） 2.19非金融資產減值在本公司財務狀況表的物業、廠房及設備（包括使用權資產）、投資物業、無形資產、土地租賃預付款項及於附屬公司的投資須進行減值測試。

尚未可供使用的具無限可使用年期的無形資產不論有否出現減值蹟象均須每年進行減值測試。

當有蹟象顯示其他資產的賬面值可能無法收回時，則對有關其他資產進行減值測試。

減值虧損按資產之賬面值超出其可收回金額的差額，即時確認為開支。

可收回金額為公平值（反映市場狀況減出售成本）與使用價值兩者中的較高者。

於評估使用價值時，估計未來現金流量以稅前貼現率貼現至現值，以反映現時市場對金錢時間值及該資產的特定風險的評估。

為評估減值，倘資產未能產生很大程度上獨立於其他資產的現金流入，可收回金額則按獨立產生現金流入的最小組別資產（即現金產生單位）釐定。

因此，部分資產個別進行減值測試，另有部分資產則按現金產生單位水平測試。

減值虧損乃按比例計入現金產生單位內的資產，惟資產賬面值不會減少至低於其個別公平值減銷售或使用價值（倘可予釐定）則除外。

倘用以釐定資產可收回金額的估計出現有利變動，減值虧損予以撥回，並僅以資產賬面值不超過在並無確認減值虧損的情況下應予釐定的賬面值（扣除折舊或攤銷）為限。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司1082. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.20 Employee benefitsRetirement benefitsIn accordance with the rules and regulations in the PRC, the PRC based employees of the Group participate in various defined contributions retirement benefit plans organised by the relevant municipal and provincial governments in the PRC under which the Group and the PRC based employees are required to make monthly contributions to these plans calculated as a percentage of the employees’ salaries, subject to a certain ceiling.The municipal and provincial governments undertake to assure the retirement benefit obligations of all existing and future retired PRC based employees payable under the plans described above. Other than the monthly contributions, the Group has no further obligation for the payment of retirement and other post-retirement benefits of its employees. The assets of these plans are held separately from those of the Group in independently administrated funds managed by the PRC government.The contributions are recognised as employee benefit expenses when they are due.Short-term employee benefitsEmployee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the reporting date.Non-accumulating compensated absences such as sick leave and maternity leave are not recognised until the time of leave.2.重大會計政策概要（續） 2.20僱員福利退休福利根據中國的規則及法規，本集團的中國僱員參與由中國相關市級及省級政府組織的各類界定供款退休福利計劃，據此本集團及中國僱員須按僱員薪金的計算比例（不超過上限）按月向該等計劃供款。

市級及省級政府承諾確保根據上述計劃中應付的所有現時及未來已退休中國僱員的退休福利責任。

除每月供款外，本集團並無向其僱員支付退休及其他退休後福利的其他責任。

該等計劃的資產由中國政府管理的獨立管理基金保管，與本集團的資產分開持有。

供款於到期時確認為僱員福利開支。

短期僱員福利僱員應得的年假於其應享有時確認。

就截至報告日期僱員已提供服務所產生的年假的估計負債計提撥備。

病假及產假等非累計有薪休假於正式告假時方予以確認。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註109Annual Report 2023年報2. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.21 Accounting for income taxesIncome tax comprises current tax and deferred tax.Current income tax assets and/or liabilities comprise those obligations to, or claims from, fiscal authorities relating to the current or prior reporting period, that are unpaid at the reporting date. They are calculated according to the tax rates and tax laws applicable to the fiscal periods to which they relate, based on the taxable profit for the year. All changes to current tax assets or liabilities are recognised as a component of tax expense in the profit or loss.Deferred tax is calculated using the liability method on temporary dif ferences at the reporting date between the carrying amounts of assets and liabilities in the consolidated financial statements and their respective tax bases. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are recognised for all deductible temporary differences, tax losses available to be carried forward as well as other unused tax credits, to the extent that it is probable that taxable profit, including existing taxable temporary differences, will be available against which the deductible temporary differences, unused tax losses and unused tax credits can be utilised.Deferred tax assets and liabilities are not recognised if the temporary difference arises from initial recognition of assets and liabilities in a transaction that af fects neither taxable nor accounting profit or loss and does not give rise to equal taxable and deductible temporary differences.Deferred tax l iabi l i t ies are recognised for taxable temporar y d i f fe rences ar is ing on investments in subsidiaries, except where the Group is able to control the reversal of the temporary dif ferences and it is probable that the temporary differences will not reverse in the foreseeable future.2.重大會計政策概要（續） 2.21所得稅會計處理所得稅包括當期稅項及遞延稅項。

當期所得稅資產及╱或負債包括就目前或以往報告期（且於報告日尚未繳付）向財政部門履行的責任或其提出的申索，乃基於年內應課稅溢利，根據有關財政期間適用的稅率及稅法計算。

當期稅項資產或負債的所有變動均於損益確認為稅項開支的一部分。

遞延稅項採用負債法就於報告日期綜合財務報表中資產及負債的賬面值與其各自稅基間的暫時差額計算。

遞延稅項負債一般按所有應課稅暫時差額確認。

遞延稅項資產則一般按所有可扣稅暫時差額、可結轉稅項虧損以及其他未動用稅項抵免確認，惟以可能錄得應課稅溢利（包括現有應課稅暫時差額）用作抵銷可扣稅暫時差額、未動用稅項虧損及未動用稅項抵免為限。

倘暫時差額來自交易（不影響應課稅或會計溢利或虧損，亦不會產生相等應課稅及可扣稅暫時差額）中初步確認的資產及負債，則不會確認遞延稅項資產及負債。

於附屬公司的投資所產生的應課稅暫時差額確認為遞延稅項負債，惟倘本集團可以控制暫時差額的撥回，而暫時差額可能不會於可預見將來撥回則除外。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司1102. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.21 Accounting for income taxes (Continued)For leasing transactions in which the tax deductions are attributable to the lease liabilities, the Group applies the requirements in HKAS 12 to the lease liabilities and the related assets separately. The Group recognises a deferred tax asset related to the lease liabilities to the extent that it is probable that taxable prof it will be available against which the deductible temporary difference can be utilised and a deferred tax liability for all taxable temporary differences. Deferred tax is calculated, without discounting, at tax rates that are expected to apply in the period the liability is settled or the asset realised, provided they are enacted or substantively enacted at the reporting date.Changes in defer red tax assets or l iab i l i t ies are recognised in the profit or loss, or in other comprehensive income or directly in equity if they relate to items that are charged or credited to other comprehensive income or directly in equity.Current tax assets and current tax liabilities are presented in net if, and only if,(a) the Group has the legally enforceable right to set off the recognised amounts; and(b) intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.The Group presents deferred tax assets and deferred tax liabilities in net if, and only if,(a) the entity has a legally enforceable right to set off current tax assets against current tax liabilities; and2.重大會計政策概要（續） 2.21所得稅會計處理（續）就稅項扣減歸屬於租賃負債的租賃交易而言，本集團對租賃負債及相關資產分別應用香港會計準則第12號的規定。

倘可能出現可利用暫時差額扣稅的應課稅溢利，本集團就租賃負債確認遞延稅項資產，並就所有應課稅暫時差額確認遞延稅項負債。

遞延稅項按於報告日期已經或大致上已實施預期於償付負債或變現資產期間適用的稅率計算，毋須貼現。

倘遞延稅項資產或負債的變動與自其他全面收益或直接於權益中扣除或計入的項目有關，則該等遞延稅項資產或負債的變動於損益或於其他全面收益或直接於權益內確認。

當期稅項資產及當期稅項負債僅在以下情況以淨額呈列：(a)本集團依法有強制執行權可以抵銷確認金額；及(b)擬以淨額基準結算，或變現該資產，同時結清該負債。

本集團僅在以下情況以淨額呈列遞延稅項資產及遞延稅項負債：(a)該實體依法有強制執行權可以將當期稅項資產與當期稅項負債對銷；及NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註111Annual Report 2023年報2. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.21 Accounting for income taxes (Continued)(b) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:(i) the same taxable entity; or(ii) different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which signif icant amounts of deferred tax liabilities or assets are expected to be settled or recovered.2.22 Related partiesFor the purposes of these consol idated f inanc ia l statements, a party is considered to be related to the Group if:(a) the party is a person or a close member of that person’s family and if that person:(i) has control or joint control over of the Group;(ii) has significant influence over the Group; or(iii) is a member of the key management personnel of the Group or of a parent of the Group.(b) the party is an entity and if any of the following conditions applies:(i) the entity and the Group are members of the same group.(ii) one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of a group of which the other entity is a member).(iii) the entity and the Group are joint ventures of the same third party.2.重大會計政策概要（續） 2.21所得稅會計處理（續）(b)遞延稅項資產及遞延稅項負債是關於同一稅務機關就以下任何一項所徵收的所得稅：(i)同一應課稅實體；或(ii)計劃於各未來期間（而預期在有關期間內將結清或收回巨額的遞延稅項負債或資產）以淨額基準結算當期稅項負債及資產或同時變現資產及結清負債的不同應課稅實體。

2.22關聯方就本綜合財務報表而言，倘下列情況適用，則一方被視為與本集團相關連：(a)該方為一名人士或該名人士的近親家族成員且倘該人士：(i)對本集團有控制權或共同控制權；(ii)對本集團有重大影響力；或(iii)為本集團或本集團母公司主要管理層成員。

(b)該方為一個實體且倘下列情況適用：(i)該實體及本集團屬同一集團的成員。

(ii)一個實體為另一實體的聯營公司或合資公司（或為某一集團的成員的聯營公司或合資公司，而該另一實體為此集團的成員）。

(iii)該實體及本集團皆為相同第三方的合資公司。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司1122. SUMMARYOFMATERIALACCOUNTING POLICIES (Continued)2.22 Related parties (Continued)(b) the party is an entity and if any of the following conditions applies: (Continued)(iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity.(v) the entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group.(vi) the entity is controlled or jointly controlled by a person identified in (a).(vii) a person ident i f ied in (a)(i) has signif icant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity).(viii) the entity, or any member of a company of which it is a part, provides key management personnel services to the Group or to the parent of the Group.Close members of the family of a person are those family members who may be expected to influence, or be influenced by, that person in their dealings with the entity.2.23 Segment reportingThe Group identifies operating segments and prepares segment information based on the regular internal f inancial information repor ted to the chief operating decision maker (“CODM”) for their decisions about resources allocation to the Group’s business components and for their review of the per formance of those components.2.重大會計政策概要（續） 2.22關聯方（續）(b)該方為一個實體且倘下列情況適用：（續）(iv)一個實體為第三實體的合資公司及另一實體為第三實體的聯營公司。

(v)該實體乃為本集團或與本集團有關連的實體的僱員福利而設的離職後福利計劃。

(vi)該實體受(a)所識別的人士控制或共同控制。

(vii)於(a)(i)所識別的人士對實體有重大影響，或為該實體（或實體的母公司）主要管理層成員。

(viii)該實體或其所屬公司的任何成員，向本集團或本集團的母公司提供主要管理人員服務。

有關人士的近親家族成員為預期於實體交易時將影響該人士或受該人士影響的家族成員。

2.23分部呈報本集團識別經營分部，並根據定期呈報予主要經營決策者（「主要經營決策者」）以供彼等決定本集團業務部分的資源分配及審閱該等部分表現的內部財務資料編製分部資料。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註113Annual Report 2023年報3. CRITICALACCOUNTINGESTIMATESAND JUDGMENTS3.1 Sources of estimation uncertaintyThe Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:Warranty provisionThe Group provides warranty to certain customers. The provision for warranty is estimated based on expected warranty work to be per formed for goods under the warranty per iod and labor charges expected to be incurred. As historical maintenance and service record may not resemble the future maintenance and service of the products sold, dif ferences between the actual amount and the estimated amount of this provision may affect future profit or loss. The carrying amount of the Group’s warranty provision at the end of each reporting period is set out in Note 22 to the consolidated financial statements.Estimation of impairment of trade and other receivablesThe Group follows the guidance of HKFRS 9 to determine when a receivable is impaired. In making this estimation and judgment , the Group eva luate, among other factors, the ageing analysis of receivables, the financial healthiness and collection history of the individual debtors and expected future change of credit r isks, including the consideration of factors such as general economy measure, existing market conditions and change in macro-economic indicators, etc at the end of each reporting period as set out in Note 36.5.The carrying amount of the Group’s trade and other receivables as at 31 December 2023 amounted to approximately RMB207,615,000 (2022: RMB181,894,000) and ECL a l l owanc e amounted to app rox imate l y RMB5,436,000 (2022: RMB4,312,000). Details of the trade and other receivables are disclosed in Note 18 to the consolidated financial statements.3.關鍵會計估計及判斷3.1估計不明朗因素的來源本集團對未來作出估計及假設。

就會計估計的結果而言，顧名思義，絕少會與有關實際結果相同。

有極高風險導致下個財政年度的資產及負債的賬面值出現重大調整的估計及假設討論如下：保養撥備本集團為若干客戶提供保養。

保養撥備乃根據保養期內就貨品進行的預期保養工作及預計將產生的勞工費用估計。

由於過往維護及服務記錄未必與已售出產品的未來維護及服務相同，該撥備的實際金額與估計金額的差異可能會影響未來損益。

本集團於各報告期末的保養撥備賬面值載於綜合財務報表附註22。

估計貿易及其他應收款項減值本集團遵循香港財務報告準則第9號的指引釐定應收款項於何時減值。

誠如附註36.5所載，在作出該估計及判斷時，本集團於各報告末評估（其中包括）應收款項的賬齡分析、個別債務人的財務穩健性及收款記錄以及信貸風險的預期未來變動，包括考慮總體經濟表現、當時市況及宏觀經濟指標變動等因素。

於2023年12月31日，本集團貿易及其他應收款項賬面值約為人民幣207,615,000元（2022年：人民幣181,894,000元），而預期信貸虧損撥備則約為人民幣5,436,000元（2022年：人民幣4,312,000元）。

貿易及其他應收款項的詳情於綜合財務報表附註18披露。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司1143. CRITICALACCOUNTINGESTIMATESAND JUDGMENTS (Continued)3.1 Sources of estimation uncertainty (Continued)Useful lives of property, plant and equipment, investment property and intangible assetsThe Group’s management determines the estimated useful lives and related depreciation and amortisation for its property, plant and equipment, investment property and intangible assets. The estimates are based on the historical experience of the actual economic lives of property, plant and equipment, investment property and intangible assets of similar nature and functions. Actual economic lives may differ from estimated useful lives. Management will adjust the depreciation and amortisation where the useful lives are estimated to be different from the previous estimates. Periodic reviews could result in a change in useful lives and therefore depreciation and amortisation expense in future periods. The carrying amounts of property, plant and equipment, investment proper ty and intangible assets at the end of each reporting period is set out in Notes 12,13 and 16 to the consolidated financial statements.Provision for inventoriesThe Group reviews the carrying amount of inventories based on consideration of obsolescence of raw materials and the net realisable value of f inished goods. The identification of inventory obsolescence and estimated selling price in the ordinary course of business require the use of judgment and estimates. Where the expectation is different from the original estimate, such difference will impact the carrying amount of inventories in the period in which such estimate has been changed. During the year ended 31 December 2023, reversal for inventories of RMB91,000 (2022: reversal inventories of RMB377,000) was recognised. The carrying amount of inventories is set out in Note 17 to the consolidated financial statements.3.關鍵會計估計及判斷（續） 3.1估計不明朗因素的來源（續）物業、廠房及設備、投資物業及無形資產的可使用年期本集團管理層釐定物業、廠房及設備、投資物業及無形資產的估計可使用年期及相關折舊及攤銷。

該等估計乃根據性質及功能相若的物業、廠房及設備、投資物業及無形資產實際經濟壽命期的過往經驗而定。

實際經濟壽命期可能有別於估計可使用年期。

當可使用年期估計有別於原先估計，則管理層將調整折舊及攤銷。

定期審查可能導致可使用年期出現變動，繼而導致未來期間的折舊及攤銷開支出現變動。

物業、廠房及設備、投資物業及無形資產於各報告期末的賬面值載於綜合財務報表附註12、13及16。

存貨撥備本集團基於對原材料過時及成品的可變現淨值的考慮，審查存貨的賬面值。

於日常業務過程中確定存貨過時及估計售價須採用判斷及估算。

倘預期有別於原先估計，該差額將影響有關估計變更期間的存貨賬面值。

於截至2023年12月31日止年度期間已確認存貨撥回人民幣91,000元（2022年：存貨撥回人民幣377,000元）。

存貨賬面值載於綜合財務報表附註17。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註115Annual Report 2023年報3.關鍵會計估計及判斷（續） 3.2關鍵會計判斷在應用本集團會計政策的過程時，管理層已作出以下會計判斷：當期所得稅本集團須繳納中國企業所得稅（「企業所得稅」）。

釐定企業所得稅撥備須作出重大判斷。

在日常業務過程中，多項交易及計算方式均會導致未能確定最終所定稅項。

倘該等事項的最終稅務結果有別於最初錄得的款項，有關差額將影響釐定期間的當期所得稅及遞延稅項撥備。

研發活動本公司管理層於決定開發成本是否已達到確認要求時作出審慎判斷。

由於任何產品開發能否取得經濟效益尚未明朗，及於確認時可能會受制於未來技術問題，故此屬必要之舉。

判斷基於各報告期末可獲得的最佳資料作出。

此外，有關研發新產品的所有內部活動由本公司管理層持續監督。

3. CRITICALACCOUNTINGESTIMATESAND JUDGMENTS (Continued)3.2 Critical accounting judgmentsIn the process of applying the Group’s accounting policies, management has made the following accounting judgments:Current income taxThe Group is subject to Enterprise Income Tax (“EIT”) in the PRC. Significant judgment is required in determining the provision for EIT. There are t ransact ions and calculations for which the ult imate determination is uncertain during the ordinary course of business. Where the final tax outcome of these matters is different from the amounts that we initially recorded, such differences will impact the current income tax and deferred tax provision in the period in which such determination is made.Research and development activitiesCareful judgment by the Company ’s management is appl ied when deciding whether the recognit ion requirements for development costs have been met. This is necessary as the economic success of any product development is uncertain and may be subject to future technical problems at the time of recognition. Judgments are based on the best information available at the end of each reporting period. In addition, all internal activities related to the research and development of new products or know how are continuously monitored by the Company’s management.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司1164. REVENUEANDSEGMENTREPORTING4.1 RevenueThe Group was engaged in the design, manufacture and sales of papermaking felts. An analysis of the Group’s revenue by products during the year is as follows:Recognised at a point in time:202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Packaging papermaking felts包裝紙造紙毛毯148,317151,700Specialty papermaking felts特種紙造紙毛毯41,52126,934Printing papermaking felts印刷造紙毛毯19,60814,244Household papermaking felts生活紙造紙毛毯12,03012,591Pulp papermaking felts漿板造紙毛毯15,89412,287 237,370217,756 Remaining performance obligationsThe fo l lowing table inc ludes revenue expected to be recognised in the future related to per formance obligations that are unsatisfied (or partially unsatisfied) is as follows:202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Within one year一年內20,98515,264 4.收益及分部呈報4.1收益本集團從事造紙毛毯的設計、製造及銷售。

以下為本集團年內按產品劃分的收益分析：於一個時間點確認：剩餘履約責任下表載列預期未來將確認有關未履行（或部分履行）的履約責任的收益：NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註117Annual Report 2023年報4.收益及分部呈報（續） 4.2分部資料由於本集團的資源已整合，且並無任何獨立財務資料，故就資源分配及表現評估而向主要營運決策者（即董事會）報告的資料集中於本集團整體的經營業績。

由於並無獨立財務資料，故不呈列資產及負債分部。

地理資料下表載列本集團根據客戶地區釐定收益的地理位置資料。

於2023年及2022年12月31日，本集團的所有非流動資產均位於中國。

有關主要客戶的資料由於本集團於截至2023年及2022年12月31日止年度並無單一客戶的銷售額佔本集團總收益的10%或以上，故並無根據香港財務報告準則第8號「經營分部」呈列有關主要客戶的資料。

4. REVENUEANDSEGMENTREPORTING (Continued)4.2 Segment informationInformation reported to the CODM (i.e. the board of directors) for the purpose of resources allocation and per formance assessment focuses on the operating results of the Group as a whole as the Group’s resources are integrated and no discrete financial information is available.No segment of assets and liabilities are presented as no discrete financial information is available.Geographical informationThe fo l low ing tab le sets ou t in fo rmat ion on the geographical locations of the Group’s revenue determined based on geographical region of the customers.202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元The PRC中國227,322203,125Overseas海外10,04814,631 237,370217,756 As at 31 December 2023 and 2022, all of the non-current assets of the Group were located in the PRC.Information about major customersSince none of the Group’s sales to a single customer amounted to 10% or more of the Group’s total revenue for the years ended 31 December 2023 and 2022, no information about major customers in accordance with HKFRS 8 “Operating Segments” is presented.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司1185. OTHERINCOME202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Bank interest income銀行利息收入3,271997Sales of scrap materials銷售廢料1,8652,133Government subsidies (note)政府補貼（附註） 2,8935,813Rental income from investment property投資物業所得租金收入2,3321,924Exchange gains, net匯兌收益淨額1,5408,804Gains on disposal of property, plant and equipment出售物業、廠房及設備收益29 —Sundry income雜項收入1,570431 13,50020,102 Note: The amount represents unconditional government subsidies received from the local government authorities for the purpose of research and development and supporting its operation.6. FINANCECOSTS202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Interest expenses on:以下各項的利息開支：Discounted bills financing貼現票據融資8730Bank borrowings銀行借款12,2476,646Other borrowings其他借款3,1383,790Lease liabilities租賃負債45870 Total borrowing costs借款成本總額15,93010,536Less:減：Amounts capitalised in the cost of qualifying assets於合資格資產成本資本化的金額(4,216) — 11,71410,536 During the year ended 31 December 2023, the Group borrowed bank loans which are made specifically for the purpose of obtaining the qualifying assets, which represented the plant and machinery under construction-in-progress. Thus, the disclosure of capitalisation rate used to determine the amount of borrowing costs eligible for capitalisation is not applicable.5.其他收入附註：該款項指收取地方政府機關為研究及開發及支持其營運所給予的無條件政府補貼。

6.財務成本截至2023年12月31日止年度，本集團為獲得合資格資產（乃指在建工程項下的廠房及機器）而專門借入銀行貸款。

因此，用於釐定符合資格進行資本化的借款金額的資本化率之披露共不適用。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註119Annual Report 2023年報7.除所得稅前溢利除所得稅前溢利於扣除╱（計入）以下各項後釐定：於截至2023年及2022年12月31日止年度，就供款全數歸屬前經已退出計劃的僱員而言，本集團概無代該等僱員沒收任何有關供款，亦無動用有關沒收供款以降低未來供款。

於2023年及2022年12月31日，概無沒收供款可供本集團使用以降低現有供款水平。

7. PROFITBEFOREINCOMETAXProfit before income tax is arrived at after charging/(crediting):202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Employee benefit expenses (including directors’ remuneration):僱員福利開支（包括董事薪酬）：— Salaries, wages and other benefits — 薪金、工資及其他福利33,89731,808— Contributions to defined contribution plans— 界定供款計劃供款7,3465,942 41,24337,750 Depreciation:折舊：Property, plant and equipment物業、廠房及設備— owned assets — 自有資產8,5988,095— right-of-use assets — 使用權資產5,2681,753Investment property投資物業2,0352,004Land lease prepayment土地租賃預付款項337338 Total depreciation折舊總額16,23812,190 Amortisation of intangible assets無形資產攤銷4,4413,225Cost of inventories recognised as expenses, including:已確認為開支的存貨成本，包括：65,18358,820— Reversal of provisions for inventories — 存貨撥備撥回(91) (377)Auditor’s remuneration核數師酬金1,1601,200Exchange gains, net匯兌收益淨額(1,540) (8,804)(Gain)/Loss on disposal of property, plant and equipment出售物業、廠房及設備收益╱ （虧損） (29) 82Research and development costs研發成本8,7438,165Lease charges on short term leases短期租約租賃費用88510Provision of ECL allowance on trade and bills receivables, net貿易應收款項及應收票據預期信貸虧損撥備淨額1,544823Provision for warranty保養撥備6,5664,579Listing expenses上市開支— 6,350 During the years ended 31 December 2023 and 2022, there were no contributions forfeited by the Group on behalf of its employees who left the plan prior to vesting fully in such contribution, nor had there been any utilisation of such forfeited contributions to reduce future contributions. As at 31 December 2023 and 2022, no forfeited contributions were available for utilisation by the Group to reduce the existing level of contribution.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司1208. INCOMETAXEXPENSE202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Current tax當期稅項PRCEnterprise Income Tax中國企業所得稅7,9618,642PRC withholding tax on dividends就股息繳納的中國預扣稅1,985 — 9,9468,642 Deferred tax遞延稅項Current year (Note 27)本年度（附註27） (234) 2,800 Income tax expense所得稅開支9,71211,442 Pursuant to the rules and regulations of the Cayman Islands, the Company is not subject to any income tax in the Cayman Islands.No provision for Hong Kong Profits Tax was made in the consolidated f inancial statements as the Group had no assessable profits subject to Hong Kong Profits Tax during the year ended 31 December 2023 (2022: nil).Under the Law (the “EITLaw”) of the PRC on Enterprise Income Tax (“EIT”) and Implementation Regulation of the EIT Law, PRCEIT is calculated at 25% of the assessable profits for subsidiary established in the PRC.Pursuant to the relevant laws and regulations in the PRC, a subsidiary of the Group, Sichuan Huanlong Technology Fabric Co., Ltd. (“Sichuan Huanlong”), is qualified as a company under the development strategy of the PRC’s western region to enjoy a preferential income tax rate of 15% from 1 January 2021 to 31 December 2030, therefore it is entitled to a preferential income tax rate of 15% for the years ended 31 December 2023 and 2022.The Company’s subsidiary, Shanghai Jinxiong Paper Making Net Carpet Co., Ltd. (“Shanghai Jinxiong”) was accredited as High and New Technology Enterprise by the relevant authorities in Shanghai for a term of three years which will be expired in November 2026, therefore it is entitled to a preferential tax rate of 15% for the years ended 31 December 2023 and 2022.8.所得稅開支根據開曼群島規則及法規，本公司毋須在開曼群島繳納任何所得稅。

由於本集團於截至2023年12月31日止年度並無須繳納香港利得稅的應課稅溢利（2022年：無），故並無在綜合財務報表中就香港利得稅計提撥備。

根據中國企業所得稅法（「企業所得稅法」）及企業所得稅法實施條例，中國企業所得稅按在中國境內成立附屬公司應課稅溢利的25%計算。

根據中國相關法律法規，本集團附屬公司四川環龍技術織物有限公司（「四川環龍」）合資格成為中國西部大開發項下公司，並可自2021年1月1日起至2030年12月31日享有15%的優惠所得稅稅率，因此合資格於截至2023年及2022年12月31日止年度享有15%的優惠所得稅稅率。

本公司的附屬公司上海金熊造紙網毯有限公司（「上海金熊」）獲上海相關機構評定為高新技術企業，為期三年，於2026年11月到期，因此於截至2023年及2022年12月31日止年度享有15%的優惠稅率。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註121Annual Report 2023年報8.所得稅開支（續）此外，四川環龍及上海金熊分別於截至2023年及2022年12月31日止年度產生的核准研發成本均合資格享有最高200%（2022年：200%）和200%（2022年：200%）的稅收減免。

所得稅開支與按適用稅率計算的會計溢利對賬如下：8. INCOMETAXEXPENSE (Continued)In addition, both Sichuan Huanlong and Shanghai Jinxiong are eligible for tax deduction up to 200% (2022: 200%) and 200% (2022: 200%) of approved research and development costs incurred for the years ended 31 December 2023 and 2022 respectively.Reconciliation between income tax expense and accounting profit at applicable tax rate:202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Profit before income tax除所得稅前溢利63,39564,442 Tax at the PRCEIT tax rate of 25% (2022: 25%)中國企業所得稅稅率25%的稅項（2022年：25%） 15,84916,111Tax effects of non-deductible expenses (note)不可扣減開支的稅務影響（附註） 2,2331,403Utilisation of temporary differences previously not recognised使用先前未確認的暫時性差異(268) 821Additional deduction for research and development expenses就研發開支額外扣減(3,172) (2,655)PRC dividend withholding tax (Note 27)中國股息預扣稅（附註27） 9031,960Effect of income taxed at concessionary rate按優惠稅率計算的所得稅影響(5,833) (6,198) Income tax expense所得稅開支9,71211,442 NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司1229. DIRECTORS’ EMOLUMENTSANDFIVE HIGHESTPAIDINDIVIDUALS9.1 Directors’ emolumentsYear ended 31 December 2023截至2023年12月31日止年度Directors' feesSalaries, allowances and benefits in kindDiscretionary bonusContributions to retirement benefit schemes Total董事袍金薪金、津貼及實物福利酌情花紅退休福利計劃供款總計RMB’000 RMB’000 RMB’000 RMB’000 RMB’000人民幣千元人民幣千元人民幣千元人民幣千元人民幣千元Executive directors:執行董事：Mr. Zhou Jun (note (a))周駿先生（附註(a)） — 800 — — 800Ms. Shen Genlian沈根蓮女士— 88 — 492Mr. Xie Zongguo謝宗國先生— 700480691,249Ms. Yuan Aomei袁傲梅女士— 2396056355Independent non-executive directors:獨立非執行董事：Mr. Ip Wang Hoi葉耘開先生120 — — — 120Mr. Zhang Shenjin張慎金先生120 — — — 120Mr. Wang Yunchen王運陳先生120 — — — 120 3601,8275401292,856 Year ended 31 December 2022截至2022年12月31日止年度Directors' feesSalaries, allowances and benefits in kindDiscretionary bonusContributions to retirement benefit schemes Total董事袍金薪金、津貼及實物福利酌情花紅退休福利計劃供款總計RMB’000 RMB’000 RMB’000 RMB’000 RMB’000人民幣千元人民幣千元人民幣千元人民幣千元人民幣千元Executive directors:執行董事：Mr. Zhou Jun (note (a))周駿先生（附註(a)） — 800 — — 800Ms. Shen Genlian沈根蓮女士— — — — —Mr. Xie Zongguo謝宗國先生— 700400631,163Ms. Yuan Aomei袁傲梅女士— 2404747334Independent non-executive directors:獨立非執行董事：Mr. Ip Wang Hoi葉耘開先生117 — — — 117Mr. Zhang Shenjin張慎金先生117 — — — 117Mr. Wang Yunchen王運陳先生117 — — — 117 3511,7404471102,648 9.董事酬金及五大最高薪酬人士9.1董事酬金NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註123Annual Report 2023年報9.董事酬金及五大最高薪酬人士（續） 9.1董事酬金（續）附註：(a)周駿先生亦為本公司行政總裁。

其如上文披露的酬金包括彼擔任行政總裁時所提供的服務酬金。

花紅屬酌情性質且根據本集團的表現而發放。

9.2五名最高薪酬人士截至2023年12月31日止年度，本集團五名最高薪酬人士包括兩名（2022年：兩名）董事，其酬金於附註9.1披露。

年內，其餘三名（2022年：三名）人士的酬金合計如下：上述人士的酬金屬於以下範圍：截至2023年12月31日止年度，董事或五名最高薪酬人士概無向本集團收取任何酬金（2022年：無），作為吸引其加入或於加入本集團時的誘因或作為離職的補償。

截至2023年12月31日止年度，董事或五名最高薪酬人士概無放棄或同意放棄任何酬金（2022年：無）。

9. DIRECTORS’ EMOLUMENTSANDFIVE HIGHESTPAIDINDIVIDUALS (Continued)9.1 Directors’ emoluments (Continued)Notes:(a) Mr. Zhou Jun is also the Chief Executive Officer of the Company. His emoluments disclosed above include those for services rendered by him in the capacity of the Chief Executive Officer.Bonus are discretionary and are based on the performance of the Group.9.2 Five highest paid individualsThe five individuals whose emoluments were the highest in the Group for the year ended 31 December 2023 include two (2022: two) directors whose emoluments are disclosed in Note 9.1. The aggregate emoluments of the remaining three (2022: three) individuals for the year are as follows:202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Basic salaries, housing allowances, other allowances and benefits in kind基本薪金、住房津貼、其他津貼及實物福利2,5822,725Contributions to retirement benefit schemes退休福利計劃供款178155 2,7602,880 The above individuals’ emoluments are within the following bands:202320222023年2022年Nil to HK$1,000,000零至1,000,000港元21HK$1,000,001 — HK$1,500,0001,000,001港元至1,500,000港元12 No director or the five highest paid individuals received any emoluments from the Group as an inducement to join or upon joining the Group or as compensation for loss of office during the year ended 31 December 2023 (2022: nil). No director or the five highest paid individuals has waived or agreed to waive any emoluments during the year ended 31 December 2023 (2022: nil).NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司12410. EARNINGSPERSHAREThe calculation of basic earnings per share attributable to equity holders of the Company is based on the following:202320222023年2022年Earnings盈利Profit for the year attributable to equity holders of the Company (in RMB’000)本公司權益持有人應佔年內溢利（人民幣千元） 53,12452,437Weighted average number of ordinary shares for the purpose of calculating basic earnings per share用作計算每股基本盈利的普通股加權平均數483,442,000479,632,581Earnings per share (in RMB cents)每股盈利（人民幣分） 10.9910.93 As at 31 December 2023 and 2022, the total shares of the Company in issue were 483,442,000 ordinary shares.Diluted earnings per share is the same as basic earnings per share for years ended 31 December 2023 and 2022 as there were no dilutive potential ordinary shares in issue during the years.11. DIVIDENDS11.1 Dividends attributable to the year202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Proposed final dividend of 4 HK cents (2022: 4 HK cents) per ordinary share建議末期股息每股普通股4港仙（2022年：4港仙） 17,55917,826 The final dividend proposed after the end of the reporting period has not been recognised as a liability at the end of the reporting period and is subject to approval by the shareholders in the forthcoming annual general meeting.11.2 Dividends attributable to the previous financial year, approved and paid during the year202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Final dividend in respect of the financial year ended 31 December 2022, of 4 HK cents (2021: nil) per ordinary share就截至2022年12月31日止財政年度派發末期股息每股普通股4港仙（2021年：無） 17,826 — 10.每股盈利本公司權益持有人應佔每股基本盈利乃根據下文所列計算得出：於2023年及2022年12月31日，本公司的已發行股份總數為483,442,000股普通股。

由於截至2023年及2022年12月31日止年度概無已發行的潛在攤薄普通股，因此該等年度的每股攤薄盈利與每股基本盈利一致。

11.股息11.1本年度股息於報告期結束後建議的末期股息尚未於報告期結束時確認為負債，且須待股東於應屆股東週年大會批准，方可作實。

11.2屬於上一財政年度，並於本年度核准及派付之股息NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註125Annual Report 2023年報12.物業、廠房及設備12. PROPERTY, PLANTANDEQUIPMENTBuildingsLeaseholdimprovementsPlant andmachineryFurniture andfixturesMotorvehiclesConstructionin progress Total樓宇租賃裝修廠房及機器傢俱及固定裝置汽車在建工程總計RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000人民幣千元人民幣千元人民幣千元人民幣千元人民幣千元人民幣千元人民幣千元Cost成本As at 1 January 2022於2022年1月1日37,3131,87688,2693,7271,21338,967171,365Additions添置8,804601478156 — 79,75789,796Modification轉撥4,831 — — — — — 4,831Transfer to investment property轉入投資物業— — 3,83313 — (3,846) —Disposals/Written-off出售╱撇銷— — (2,219) (103) (4) — (2,326) As at 31 December 2022於2022年12月31日50,9482,47790,3613,7931,209114,878263,666 As at 1 January 2023於2023年1月1日50,9482,47790,3613,7931,209114,878263,666Additions添置1,252907176195 — 193,601196,131Transfers轉撥— — 53,715423 — (54,138) —Disposals/Written-off出售╱撇銷— (262) (1,520) (58) — — (1,840) As at 31 December 2023於2023年12月31日52,2003,122142,7324,3531,209254,341457,957 Accumulated depreciation累計折舊As at 1 January 2022於2022年1月1日23,22087251,7402,624549 — 79,005Charge for the year年內支出3,1333295,949310127 — 9,848Written back on disposals/written-off出售╱撇銷時撥回— — (1,812) (90) (3) — (1,905) As at 31 December 2022於2022年12月31日26,3531,20155,8772,844673 — 86,948 As at 1 January 2023於2023年1月1日26,3531,20155,8772,844673 — 86,948Charge for the year年內支出6,6483186,404371125 — 13,866Written back on disposals/written-off出售╱撇銷時撥回— — (859) (51) — — (910) As at 31 December 2023於2023年12月31日33,0011,51961,4223,164798 — 99,904 Net book amount賬面淨值As at 31 December 2022於2022年12月31日24,5951,27634,484949536114,878176,718 As at 31 December 2023於2023年12月31日19,1991,60381,3101,189411254,341358,053 NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司12612.物業、廠房及設備（續） 於2023年12月31日，本集團總賬面淨值人民幣99,642,000元（2022年：人民幣128,884,000元）的物業、廠房及設備，包括分別為人民幣74,204,000元（2022年：人民幣98,826,000元）及人民幣45,828,000元（2022年：零）的在建工程以及廠房及設備，已予抵押以取得授予本集團的銀行及其他借款（附註35）。

計入物業、廠房及設備的賬面值淨額內的使用權資產如下：上述使用權資產的估計可使用年期或租期以直線法減值如下：樓宇5%或租期較短者截至2023年12月31日止年度，計入物業、廠房及設備的使用權資產添置、修訂調整及折舊費用總額分別為人民幣1,252,000元（2022年：人民幣8,804,000元）、零（2022年：人民幣4,831,000元）及人民幣5,268,000元（2022年：人民幣1,753,000元）。

12. PROPERTY, PLANTANDEQUIPMENT (Continued)As at 31 December 2023, the Group’s proper ty, plant and equ ipment w i th aggregate net book amount o f RMB99,642,000 (2022: RMB128,884,000) , i nc lud ing construction in progress and plant and equipment amounting RMB74,204,000 (2022: RMB98,826,000) and RMB45,828,000 (2022: nil), respectively, were pledged to secure the bank and other borrowings granted to the Group (Note 35).Included in the net carrying amount of property, plant and equipment is right-of-use assets as follows:202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Buildings樓宇9,21813,234 The above right-of-use assets is depreciated on a straight-line basis over their estimated useful life or lease term as follows:Buildings 5% or shorter of the lease termDur ing the year ended 31 December 2023, the tota l additions, modification adjustment and depreciation charge to right-of-use assets included in property, plant and equipment amount ing to RMB1,252,000 (2022: RMB8,804,000) , N i l (2022: RMB4,831,000) and RMB5,268,000 (2022: RMB1,753,000), respectively.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註127Annual Report 2023年報13.投資物業於報告期末，本集團的投資物業及有關公平值層級資料的詳情如下。

以下各等級乃基於輸入值在計量時可否觀察及是否重大劃分：第一級：相同資產及負債在活躍市場未經調整的報價。

第二級：除第一級包括的報價外，可直接或間接觀察的資產或負債輸入值，且並無涉及重大不可觀察的輸入值。

第三級：重大不可觀察的資產或負債輸入值。

13. INVESTMENTPROPERTYRMB’000人民幣千元Cost成本At 1 January 2022於2022年1月1日41,443Additions — subsequent expenditures添置—其後支出1,348 At 31 December 2022,1 January 2023 and 31 December 2023於2022年12月31日、2023年1月1日及2023年12月31日42,791 Accumulated depreciation累計折舊At 1 January 2022於2022年1月1日491Charge for the year年內支出2,004 At 31 December 2022 and 1 January 2023於2022年12月31日及2023年1月1日2,495Charge for the year年內支出2,035 At 31 December 2023於2023年12月31日4,530 Net book amount賬面淨值At 31 December 2022於2022年12月31日40,296 At 31 December 2023於2023年12月31日38,261 Details the Group’s investment property and information about the fair value hierarchy as at the end of the reporting period are as follows. The levels are based on the observability and significance of inputs to the measurements, as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities. Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, and not using signif icant unobservable inputs. Level 3: significant unobservable inputs for the asset or liability.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司12813.投資物業（續）本集團的投資物業於2023年及2022年12月31日獲獨立合資格專業估值師重新估值。

於報告期末進行估值時，本集團的管理層已就估值的假設與估值師展開討論。

於中國的廠房採用收入法估計公平值，即使用相似物業於近期交易時的隱含市場孳息率得出的折現率，將估計的租金收入流扣除預測經營成本後撥充資本。

當實際租金與估計租金出現重大差異時，估計租金值則會作出調整。

估計租金流經計及當前出租率、估計的未來空置率、租賃條款，以及按物業的剩餘經濟壽命預測未來租賃的租金。

13. INVESTMENTPROPERTY (Continued)As at 31 December 2023於2023年12月31日Level 1 Level 2 Level 3 Total第一級第二級第三級總計RMB’000 RMB’000 RMB’000 RMB’000人民幣千元人民幣千元人民幣千元人民幣千元Recurring fair value measurement經常性公平值計量— Factory building in the PRC —於中國的廠房— — 42,00042,000 As at 31 December 2022於2022年12月31日Level 1 Level 2 Level 3 Total第一級第二級第三級總計RMB’000 RMB’000 RMB’000 RMB’000人民幣千元人民幣千元人民幣千元人民幣千元Recurring fair value measurement經常性公平值計量— Factory building in the PRC —於中國的廠房— — 42,00042,000 The Group’s investment proper ty was revalued at 31 December 2023 and 2022 by an independent professional qualified valuer. The Group’s management has discussion with the valuer on the valuation assumptions when the valuation is performed at the end of reporting period.The fair value of the factory building in the PRC is estimated using an income approach which capitalises the estimated rental income stream, net of projected operating costs, using a discount rate derived from market yields implied by recent transactions in similar properties. When actual rent differs materially from the estimated rents, adjustments have been made to the estimated rental value. The estimated rental stream takes into account current occupancy level, estimates of future vacancy level, the terms of leases and expectations for rentals from future leases over the remaining economic life of the properties.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註129Annual Report 2023年報14.於附屬公司的權益於本報告日期，本公司於以下附屬公司擁有直接及間接權益，詳情載列如下：*英文譯名僅供識別。

於報告期末，概無附屬公司已發行任何債務證券。

14. INTERESTSINSUBSIDIARIESAs at the date of this repor t, the Company had direct and indirect interest in the following subsidiaries and the particulars of which are set out below:Company name Kind of legal entityPlace ofincorporationand operationRegistered/Issued andpaid up capital As at 31 December Principal activities公司名稱法律實體類型註冊成立及經營地點已註冊╱已發行及繳足資本於12月31日主要業務202320222023年2022年Directly held:直接持有：Lion Courage Enterprises Limited Limited liability company The BVIUSD100100% 100% Investment holdingLion Courage Enterprises Limited有限責任公司英屬處女群島100美元投資控股Virtuous Way Limited Limited liability company The BVIUSD100100% 100% Investment holding賢途有限公司有限責任公司英屬處女群島100美元投資控股Indirectly held:間接持有：Vanov Tianhe International Holdings Limited Limited liability company Hong Kong HKD10,000100% 100% Sales of papermaking felts環龍天和國際控股有限公司有限責任公司香港10,000港元造紙毛毯的銷售Chengdu Huanlong Funeng Technology Co., Ltd.* Limited liability company, registered as a wholly foreign owned enterprise under PRC lawThe PRCRMB1,000,000100% 100% Investment holding成都環龍賦能科技有限公司有限責任公司，根據中國法律註冊為外資獨資企業中國人民幣1,000,000元投資控股Chengdu Huanlong Lixin Technology Co., Ltd.* Limited liability company, registered as a foreign-invested enterprise and domestic joint venture under PRC lawThe PRCRMB1,000,00099% 99% Investment holding成都環龍立欣科技有限公司有限責任公司，根據中國法律註冊為外商投資企業及國內合營企業中國人民幣1,000,000元投資控股Marvel Dragon Development Limited Limited liability company Hong Kong HKD100100% 100% Investment Holding億龍發展有限公司有限責任公司香港100港元投資控股Sichuan Huanlong Technology Fabric Co., Ltd.* Limited liability company, registered as a sino-foreign joint venture enterprise under PRC lawThe PRCRMB40,650,00099% 99% Manufacturing and sales of papermaking felts四川環龍技術織物有限公司有限責任公司，根據中國法律註冊為中外合資企業中國人民幣40,650,000元造紙毛毯的製造及銷售Shanghai Jinxiong Paper Making Net Carpet Co., Ltd.*Limited liability company, registered as a sino-foreign joint venture enterprise under PRC lawThe PRCRMB47,550,00099% 99% Manufacturing and sales of papermaking felts上海金熊造紙網毯有限公司有限責任公司，根據中國法律註冊為中外合資企業中國人民幣47,550,000元造紙毛毯的製造及銷售* The translation of name in English is for identification purposes only.None of the subsidiaries had issued any debt securities at the end of the reporting period.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司13015.土地租賃預付款項其賬面淨值變動分析如下﹕租賃土地位於中國，並以中期租約持有。

於2023年12月31日，本集團向銀行抵押賬面值為人民幣4,843,000元（2022年：人民幣5,180,000元）的土地租賃預付款項，以取得授予本集團的銀行借款（附註35）。

15. LANDLEASEPREPAYMENT202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元The Group’s land lease prepayments comprise:本集團的土地租賃預付款項包括：The PRC, held on:中國，以下列租約持有：— Leases of between 10 to 50 years — 10至50年的租約4,8435,180 The movements in their net carrying amounts are analysed as follows:202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元At the beginning of the year年初5,1805,518Depreciation折舊(337) (338) At the end of the year年末4,8435,180 The leasehold land is situated in the PRC and held under medium lease. As at 31 December 2023, the Group’s land lease prepayment with a carrying amount of RMB4,843,000 (2022: RMB5,180,000) were pledged to a bank to secure bank borrowings granted to the Group (Note 35).NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註131Annual Report 2023年報16.無形資產16. INTANGIBLEASSETSTrademarksComputersoftware and operation systemsCapitaliseddevelopmentcostsConstructionin progress Total商標電腦軟件及運營系統資本化開發成本在建工程總計RMB’000 RMB’000 RMB’000 RMB’000 RMB’000人民幣千元人民幣千元人民幣千元人民幣千元人民幣千元Cost成本As at 1 January 2022於2022年1月1日32,45491026,9005,67165,935Additions添置180 — — 102282Additions from internal developments內部開發添置— — — 10,62110,621Transfer轉撥— — 10,045 (10,045) — As at 31 December 2022於2022年12月31日32,63491036,9456,34976,838 As at 1 January 2023於2023年1月1日32,63491036,9456,34976,838Additions添置— 3,506 — 1903,696Additions from internal developments內部開發添置— — — 12,26712,267Transfer轉撥— — 11,111 (11,111) — As at 31 December 2023於2023年12月31日32,6344,41648,0567,69592,801 Accumulated amortisation累計攤銷As at 1 January 2022於2022年1月1日— 1454,449 — 4,594Charge for the year年內支出3883,134 — 3,225 As at 31 December 2022於2022年12月31日32337,583 — 7,819 As at 1 January 2023於2023年1月1日32337,583 — 7,819Charge for the year年內支出183794,044 — 4,441 As at 31 December 2023於2023年12月31日2161211,627 — 12,260 Net book amount賬面淨值As at 31 December 2022於2022年12月31日32,63167729,3626,34969,019 As at 31 December 2023於2023年12月31日32,6133,80436,4297,69580,541 NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司13216.無形資產（續）無形資產主要指：(1)賬面值為人民幣32,454,000元（2022年：人民幣32,454,000元）的商標被視為具有無限可使用年期，因為本集團董事認為該等商標能夠以極低成本無限期重續；(2)賬面值為人民幣159,000元（2022年：人民幣177,000元）的商標被視為具有明確的估計可使用年期為10年；(3)自第三方購入或透過內部開發的電腦軟件及運營系統；及(4)本集團通過內部研發及資本化技術知識產生的資本化開發成本。

本集團透過考慮經濟生命週期、專利的持續技術進步、本集團過往產品的經驗及專利的合約合法權利，以評估資本化開發成本的可使用年期，本集團認為該等專利的可使用年期為10年。

截至2023年及2022年12月31日止年度，攤銷費用已計入損益表的「行政及其他經營開支」。

減值測試具無限可使用年期的商標及尚未可供使用的在建無形資產已分配至作相同減值測試的相關現金產生單位（「現金產生單位」）。

現金產生單位的可收回金額按使用價值計算而釐定，涵蓋一個詳細的五年預算計劃，隨後按4%（2022年：4%）的平均增長率外推預期現金流量。

16. INTANGIBLEASSETS (Continued)Intangible assets mainly represent:(1) the trademarks with carrying amounts of RMB32,454,000 (2022: RMB32,454,000) were regarded as hav ing indefinite useful lives because in opinion of the directors of the Group, they are capable of being renewed indefinitely at insignificant cost;(2) the trademark with carrying amount of RMB159,000 (2022: RMB177,000) was regarded as having definite estimated useful live of 10 years;(3) computer software and operation systems were acquired from third parties or through internal development; and(4) capitalised development costs generated through internal research and developments and capitalised technical know-hows by the Group.The Group assesses the useful lives capitalised developments costs by considering the economic life cycles, continuous technological advancement of the patents, the experience on previous products of the Group and contractual legal rights of the patents, it is concluded that the useful lives of these patents are 10 years.The amortisation charge for the years ended 31 December 2023 and 2022 is included in “Administrative and other operating expenses” in the profit or loss.Impairment testingThe trademarks with indefinite useful lives and the intangible assets that under construct ion in progress which not yet available for use have been allocated to the relevant cash-generating units (the “CGU”) which is the same for impairment testing.The recoverable amount of the CGU has been determined based on value in use calculations, covering a detailed f ive-year budget plan, fol lowed by an extrapolat ion of expected cash flows at the average growth rates of 4% (2022: 4%).NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註133Annual Report 2023年報16.無形資產（續）減值測試（續）現金流量預測所應用貼現率於2023年12月31日為14.5%（2022年：14.6%）。

本集團的主要假設由本集團管理層根據過去表現及對行業發展的預期釐定。

所使用貼現率未計及稅項，反映分部相關的具體風險。

根據上述主要假設，於2023年12月31日，可收回金額分別將超過現金產生單位的賬面值不少於約人民幣80.9百萬元（2022年：人民幣42.9百萬元）。

倘增長率減少1%，則於2023年12月31日相關現金產生單位的可收回金額將減少約人民幣8.1百萬元（2022年：人民幣5.3百萬元）。

倘貼現率（除稅前）增加1%，則於2023年12月31日相關現金產生單位的可收回金額將減少約人民幣10.8百萬元（2022年：人民幣7.1百萬元）。

本公司董事認為，主要參數的合理可能變動不會導致相關現金產生單位的賬面值超過可收回金額。

倘於2023年12月31日的增長率減少66%或貼現率增加20%（2022年12月31日：增長率減少24%或貼現率增加11%），則相關現金產生單位的可收回金額將與其賬面值相若。

董事認為，對於商標可收回金額基礎的主要假設，並無合理可能變動會導致賬面值超出可收回金額。

16. INTANGIBLEASSETS (Continued)Impairment testing (Continued)As at 31 December 2023, the discount rates applied to the cash flow projections were 14.5% (2022: 14.6%). The key assumptions for the Group have been determined by the Group’s management based on past performance and its expectations for the industry development. The discount rates used are pre-tax and reflects specific risks relating to the segment.Based on the above key assumptions, as at 31 December 2023 the recoverable amount would exceed the carrying amounts of the CGU by not less than approximately RMB80.9 million (2022: RMB42.9 million). If the growth rate decreased by 1%, the recoverable amount of the relevant CGU would be dropped by approximately RMB8.1 million (2022: RMB5.3 million) as at 31 December 2023. If the discount rate (pre-tax) increased by 1%, the recoverable amount of the relevant CGU would be dropped by approximately RMB10.8 million (2022: RMB7.1 million) as at 31 December 2023.In the opinion of the directors of the Company, a reasonably possib le change in key parameters would not cause the carrying amount of the relevant CGU to exceed the recoverable amount. If the growth rate decreased by 66% or discount rate increased by 20% as at 31 December 2023 (as at 31 December 2022: the growth rate decreased by 24% or discount rate increased by 11%), the recoverable amount of the relevant CGU would be approximated to its carrying amount.In the opinion of the directors, there is no reasonably possible change in the key assumptions on which the recoverable amount of the trademarks is based that would cause the carrying amounts to exceed the recoverable amount.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司13417.存貨存貨撇減撥備的分析如下：截至2022年及2023年12月31日止年度，存貨撥備撥回乃由於出售過時存貨產生。

17. INVENTORIES202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Raw materials原材料10,4117,851Work-in-progress在建工程4,3294,885Finished goods成品4,6074,912 19,34717,648Less: provision for inventories減：存貨撥備(224) (315) 19,12317,333 Analysis of the provision for inventory write down is as below:202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元At the beginning of the year於年初315692Reversal for the year年內撥回(91) (377) At the end of the year於年末224315 During the years ended 31 December 2022 and 2023, the reversal of provision for inventory arose from sale of obsolete inventory.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註135Annual Report 2023年報18.貿易及其他應收款項附註：可退還按金乃就以下各項而支付：(i)投資目標的潛在收購諮詢工作，金額為人民幣4,146,000元（2022年：人民幣4,522,000元）。

倘於合約期內並無收購完成，則按金將退還予本集團；及(ii)運營系統升級以加強本集團的造紙機運營效率優化服務數字平台系統，金額為零（2022年：3,618,000元）。

倘於合約期內升級工作未能於目標時間內完成，則按金將退還予本集團。

18. TRADEANDOTHERRECEIVABLES202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Trade receivables貿易應收款項— Third parties — 第三方172,449152,282— Related parties — 關聯方6,5443,372Less: ECL allowance provision減：預期信貸虧損撥備(5,202) (4,312) 173,791151,342Bills receivables應收票據27,24419,907Less: ECL allowance provision減：預期信貸虧損撥備(234) — 200,801171,249 Prepayments預付款項1,2131,379Refundable deposits (note)可退回按金（附註） 4,1468,140Other tax receivables其他應收稅項3,204178Other receivables其他應收款項568597 9,13110,294 209,932181,543 Note: The refundable deposits was paid for:(i) the consultancy work on potent ial acquisi t ion of investment targets amounting to RMB4,146,000 (2022: RMB4,522,000). If no acquisition is completed within the contract period, the deposit will be refunded to the Group; and(ii) operation system upgrade to strengthen the Group’s Huanlong Paper Machine Efficiency Operation System amounting to nil (2022: RMB3,618,000). If the work cannot meet the target timeline completed within the contract period, the deposit will be refunded to the Group.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司13618.貿易及其他應收款項（續） 董事認為貿易及其他應收款項的公平值與其賬面值並無重大差異。

於各報告日期，根據交付日期呈列的貿易應收款項賬齡分析如下：票據指本集團從客戶收取由銀行發出的承兌票據，有關客戶就發票貨品或服務履行向本集團的付款責任。

該等票據為可背書、無抵押、不計息及於一年內到期。

於2023年12月31日，計入結餘的應收票據中，人民幣3,690,000元（2022年：零）已貼現並具有追索權。

該等應收票據尚未被終止確認，乃由於該等應收票據的所有權並未轉移至對手方。

另一方面，於2023年12月31日，已就收取的現金確認貼現票據融資人民幣3,690,000元（2022年：零）（附註24）。

18. TRADEANDOTHERRECEIVABLES (Continued)The directors considered that the fair values of trade and other receivables are not materially dif ferent from their carrying amounts.As at each reporting date, the ageing analysis of trade receivables based on the delivery date is as follows:202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元0–90 days 0天至90天113,42094,52791–180 days 91天至180天28,49520,204181–365 days 181天至365天18,89522,543Over 365 days 365天以上18,18318,380 178,993155,654 The bi l ls represent promissory notes issued by banks received by the Group from customers who discharge their liabilities to pay the Group for the goods or services invoiced. These bills are endorsable, unsecured, non-interest bearing and matured within one year.As at 31 December 2023, included in the balances, bills receivables of RMB3,690,000 (2022: nil) were discounted with recourse. These bills receivables were not derecognised as the title of these bills receivables were not transferred to the counterparties. On the other hand, as at 31 December 2023, discounted bills financing of RMB3,690,000 (2022: nil) was recognised for the cash received (Note 24).NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註137Annual Report 2023年報18.貿易及其他應收款項（續） 根據各報告期末發行日期呈列的應收票據賬齡分析如下：已背書應收票據不計入年末結餘，於截至2023年12月31日止年度，本集團已轉讓應收票據人民幣106,652,200元（2022年：人民幣100,933,910元），以透過背書該等票據向其供應商結算其應付款項。

根據中國票據法，如票據的發行銀行違約，票據的被背書人可向背書人行使追索權。

就向其供應商背書的票據而言，本集團已悉數終止確認該等應收票據及貿易及其他應付款項。

本公司董事認為，本集團已將該等票據所有權的絕大部分風險及回報轉移至有關被背書人。

根據中國相關規則及法規，倘發行銀行未能於到期日結算票據，本集團就該等應收票據承擔的結算責任的風險有限。

本集團認為票據發行銀行具良好信貸質量，且發行銀行於到期時未能結算的風險屬微不足道。

18. TRADEANDOTHERRECEIVABLES (Continued)The ageing analysis of bills receivables presented based on issue date at the end of each reporting period is as follows:202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元0 – 90 days 0天至90天14,38512,14691 – 180 days 91天至180天12,7197,301181 – 365 days 181天至365天140460 27,24419,907 Bills receivables endorsedNot included in the years end balances, during the year ended 31 December 2023, the Group has transferred bi l ls receivables amounted to RMB106,652,200 (2022: RMB100,933,910) to settle its payables through endorsing the bills to its suppliers. In accordance with the Law of Negotiable Instruments in the PRC, the endorsee of the bills has a right of recourse against the endorser if the issuing banks default. For those endorsed to its suppliers, the Group has derecognised these bills receivables and the trade and other payables in their entirety. In the opinion of the directors of the Company, the Group has transferred substantially all the risks and rewards of ownership of these bills to the endorsee. The Group has limited exposure in respect of the settlement obligation of these bills receivables under relevant PRC rules and regulations should the issuing banks failed to settle the bills on maturity date. The Group considered the issuing banks of the bills are of good credit quality and the risk of non-settlement by the issuing banks on maturity is insignificant.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司13818.貿易及其他應收款項（續） 已背書應收票據（續）於2023年12月31日，倘發行銀行未能於到期日結算票據，則最大虧損風險相等於本集團就已背書票據應付有關被背書人的金額為人民幣106,652,200元（2022年：人民幣100,933,910元）。

所有已背書應收票據之到期日自各報告期末起計均少於一年。

貿易應收款項及應收票據的預期信貸虧損撥備變動如下：於2023年12月31日，預期信貸虧損撥備結餘包括個別減值的貿易應收款項的總結餘為人民幣3,821,000元（2022年：人民幣1,821,000元），而參考該等應收款項的過往經驗，該等應收款項未必可收回。

本集團並無就該等結餘持有任何抵押品。

本集團的信貸政策及貿易及其他應收款項產生的信貸風險詳情載於附註36.5。

18. TRADEANDOTHERRECEIVABLES (Continued)Bills receivables endorsed (Continued)As at 31 December 2023, the maximum exposure to loss, which is same as the amount payable by the Group to the endorsee in respect of the endorsed bills, should the issuing banks fail to settle the bills on maturity date amounted to RMB106,652,200 (2022: RMB100,933,910). All the bi l ls receivables endorsed have a maturity date of less than one year from the end of each reporting period.The movement in the ECL allowance of trade and bills receivables is as follows:202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元At the beginning of the year於年初4,3123,639Amounts written off已撇銷金額(420) (150)Provision of ECL allowance預期信貸虧損撥備1,544823 At the end of the year於年末5,4364,312 As at 31 December 2023, inc luded in the balance of ECL allowance provision are individually impaired trade receivables with an aggregate balance of RMB3,821,000 (2022: RMB1,821,000), with reference to the histor ical experience of these receivables, the collection of these receivables may not be recoverable. The Group does not hold any collateral over these balances.Further details of the Group’s credit policy and credit risk arising from trade and other receivables are set out in Note 36.5.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註139Annual Report 2023年報19.按公平值計入損益的金融資產本集團於上市股本證券及權證的投資之公平值乃按照附註36.7釐定。

20.現金及現金等價物銀行現金按根據每日銀行存款利率計算的浮動利率賺取利息。

本集團的銀行及現金結餘包括存放在中國境內的以人民幣（「人民幣」）計值的銀行結餘人民幣20,226,000元（2022年：人民幣10,654,000元）。

人民幣不可自由兌換。

根據中國外匯管理條例及結匯、售匯及付匯管理規定，本集團獲准通過授權開展外匯業務的銀行將人民幣兌換成外幣。

19. FINANCIALASSETSATFAIRVALUE THROUGHPROFITORLOSS202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Listed equity securities and warrants — Hong Kong上市股本證券及權證— 香港830984 The fair value of the Group’s investments in listed equity securities and warrants has been measured as described in Note 36.7.20. CASHANDCASHEQUIVALENTS202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Cash and bank balances現金及銀行結餘78,63185,618 Cash at banks earns interests at floating rates based on daily bank deposit rates.Inc luded in bank and cash balances of the Group is RMB20,226,000 (2022: RMB10,654,000) of bank balances denominated in Renminbi (“RMB”) placed with banks in the PRC. RMB is not a freely convertible currency. Under the PRC’s Foreign Exchange Control Regulat ions and Administration of Settlement and Sales and Payment of Foreign Exchange Regulations, the Group is permitted to exchange RMB for foreign currencies through banks that are authorised to conduct foreign exchange business.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司14021.合約負債合約負債即就向客戶轉移造紙毛毯前的已收客戶按金。

於年初未償還合約負債人民幣327,000元（2022年：人民幣110,000元）已於年內確認為收益。

22.貿易及其他應付款項21. CONTRACTLIABILITIES202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Amount received in advance for sales of papermaking felts products expected to be recognise:預期就銷售造紙毛毯產品預先收取的款項將於以下期間確認：— within one year —一年內1,395486 Contract liabilities represent the deposits received from the customers in advance of the transfer of papermaking felts to the customers.Contract liabilities outstanding at the beginning of the year amounting to RMB327,000 (2022: RMB110,000) have been recognised as revenue during the year.22. TRADEANDOTHERPAYABLES202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Trade payables貿易應付款項— Third parties —第三方26,04020,768 Other payables其他應付款項Other payables其他應付款項3,5233,585Construction payables應付工程款項9,087905Accrued salaries應計工資款項6,5635,824Receipt in advance from a tenant預收租戶款項700700Accruals應計款項3,1723,334Warranty provision保養撥備5,1214,699Other tax payables其他應付稅項1,7258,719 29,89127,766 55,93148,534 NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註141Annual Report 2023年報22.貿易及其他應付款項（續）本集團獲其供應商授予30至90天（2022年：30至90天）的信貸期。

根據發票日期，貿易應付款項的賬齡分析如下：貿易及其他應付款項的賬面值被視為合理地與其公平值相若。

保養撥備的變動如下：保養撥備指管理層對本集團就造紙毛毯提供45至120天保養（根據過往經驗及有關缺陷產品的行業常規得出）所承擔責任的最佳估計。

22. TRADEANDOTHERPAYABLES (Continued)The Group is granted by its suppliers a credit periods of 30 to 90 days (2022: 30 to 90 days). Based on the invoice dates, the ageing analysis of the trade payables is as follows:202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元0–30 days 0天至30天7,9529,28531–60 days 31天至60天6,4464,45061–90 days 61天至90天4,9972,80491–180 days 91天至180天4,7202,919181–365 days 181天至365天1,517901Over 365 days 365天以上408409 26,04020,768 The carr y ing values of t rade and other payables are considered to be reasonable approximation of their fair values.The movement in the warranty provision is as follows:202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元At beginning of year於年初4,6994,605Provision for the year年內撥備6,5664,579Utilisation for the year年內使用(6,144) (4,485) At end of year於年末5,1214,699 The warranty provision represents management ’s best estimate of the Group’s liability under 45 to 120 days warranty granted on papermaking felts, based on prior experience and industry averages for defective products.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司14223.租賃負債本集團就經營而租用物業，該等租賃負債按尚未支付的租賃付款的現值計量。

所有租賃均以固定價格及一般以一至兩年（2022年：一至三年）的固定租期訂立。

租期乃按個別基準磋商而定。

截至2023年12月31日止年度，租賃的現金流出總額（包括租賃負債的付款）為人民幣4,417,000元（2022年：人民幣5,420,000元）。

23. LEASELIABILITIES202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Total minimum lease payment due:應付最低租賃付款總額：— Within one year —一年內4,3943,866— In the second to fifth years —於第二至第五年3,4566,971 7,85010,837Future finance charges on leases liabilities租賃負債未來融資費用(336) (704) Present value of lease liabilities租賃負債現值7,51410,133 202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Present value of minimum lease payments:最低租賃付款現值：— Within one year —一年內4,1253,460— In the second to fifth years —於第二至第五年3,3896,673 7,51410,133Less: Portion due within one year included under current liabilities減：流動負債項下的一年內到期部分(4,125) (3,460) Portion due after one year included under non-current liabilities非流動負債項下的一年後到期部分3,3896,673 The Group leases properties for operation and these lease liabilities were measured at the present value of the lease payments that are not yet paid. All leases are entered at fixed prices and typically made for fixed periods of one to two years (2022: one to three years), lease terms are negotiated on an individual basis.The total cash outflows for leases including the payments of lease liabilities for the year ended 31 December 2023 were RMB4,417,000 (2022: RMB5,420,000).NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註143Annual Report 2023年報24.貼現票據融資該結餘指通過貼現本集團具追索權的應收票據而取得的銀行借款，該等借款由第三方背書。

由於應收款項的所有權並無轉移至對手方，因此本集團繼續確認附註18所呈列相關應收票據的賬面值。

25.銀行借款於2023年及2022年12月31日，已抵押銀行借款及其須予償還情況如下：附註： 該等金額乃基於貸款協議所載的原訂還款日期計算得出。

銀行借款的利率載於附註36.3。

銀行借款由已抵押資產擔保（附註35）。

24. DISCOUNTEDBILLSFINANCINGThe ba lanc e rep resen t s bo r row ings f rom banks by discounting, with recourse, bills receivables to the Group which were endorsed by third parties. The Group continues to recognise the carrying amount of the underlying bills receivables, as presented in Note 18, since the tit le of receivables was not transferred to the counterparties.25. BANKBORROWINGS202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Bank borrowings銀行借款— current — 即期84,96157,500— non-current — 非即期184,500104,500 269,461162,000 At 31 December 2023 and 2022, bank borrowings were secured and repayable as follows:202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Carrying amount repayable (Note)須於以下期間償還的賬面值（附註）— within one year — 一年內84,96157,500— in the second year to fifth year inclusive — 第二年至第五年（包括首尾兩年） 139,500104,500— after five years — 五年後45,000 — 269,461162,000Note: The amounts are based on the scheduled repayment dates set out in the loan agreements.The interest rates of the bank borrowings is set out in Note 36.3.The bank borrowings were secured by pledged assets as set out in Note 35.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司14426.其他借款於2023年及2022年12月31日，已抵押其他借款及其須予償還情況如下：截至2023年12月31日止年度，本集團與租賃公司訂立金額為人民幣33,717,000元（2022年：人民幣49,336,000元）的售後回租協議，以獲得機器及設備（「抵押資產」），為期三年（2022年：為期三年）。

於到期時，本集團將有權購買有抵押資產。

於2023年12月31日，其中一份價值人民幣14,200,000元（2022年：零）的售後回租協議已於到期前清償，且本集團已購買人民幣29,998,000元（2022年：零）的有關抵押資產。

26. OTHERBORROWINGS202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Other borrowings其他借款— current —即期27,43724,381— non-current —非即期29,81529,122 57,25253,503 At 31 December 2023 and 2022, other borrowings were secured and repayable as follows:202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Carrying amount repayable:須於以下期間償還的賬面值：— within one year — 一年內27,43724,381— in the second to fifth year inclusive — 第二年至第五年（包括首尾兩年） 29,81529,122 57,25253,503 During the year ended 31 December 2023, the Group entered into sale and leaseback agreements with leasing companies for machinery and equipment (“Secured Assets”) amounting to RMB33,717,000 (2022: RMB49,336,000) for a period of three years (2022: a period of three years). Upon maturity, the Group will be entitled to purchase the Secured Assets.As at 31 December 2023, one of the sale and leaseback agreement amounting to RMB14,200,000 (2022: nil) has been settled before maturity and the related Secured Assets amounting to RMB29,998,000 (2022: nil) has been purchased by the Group.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註145Annual Report 2023年報26. 其他借款（續）其他借款的利率載於附註36.3。

於2023年12月31日，售後回租責任為人民幣57,252,000元（2022年：人民幣53,503,000元），由本集團賬面價值分別為人民幣74,204,000元（2022年：人民幣98,826,000元）及人民幣45,828,000元（2022年：零）的在建工程以及廠房及設備作抵押（附註12）。

27.遞延稅項遞延稅項資產╱（負債）的變動如下：遞延稅項資產26. OTHERBORROWINGS (Continued)The interest rates of the other borrowings is set out in Note 36.3.As at 31 December 2023, sale and leaseback obligation of RMB57,252,000 (2022: RMB53,503,000) was secured by the Group’s construction in progress and plant and equipment with carrying amount of RMB74,204,000 (2022：RMB98,826,000) and RMB45,828,000 (2022: nil), respectively (Note 12).27. DEFERREDTAXThe movements in deferred tax assets/(liabilities) are as follows：Deferred Tax AssetsProvision for inventoriesProvision of allowance on receivableUnrealised profit in inventoriesRight-of-use assets Total存貨撥備應收款項撥備未變現存貨溢利使用權資產總計RMB’000 RMB’000 RMB’000 RMB’000 RMB’000人民幣千元人民幣千元人民幣千元人民幣千元人民幣千元As at 1 January 2022於2022年1月1日10454670 — 720Credited/(Charged) to profit or loss (Note 8)於損益計入╱（扣除） （附註8） (57) 101 (4) — 40 As at 31 December 2022 and 1 January 2023於2022年12月31日及2023年1月1日4764766 — 760Credited/(Charged) to profit or loss (Note 8)於損益計入╱（扣除） （附註8） (13) 133202,3562,496 As at 31 December 2023於2023年12月31日34780862,3563,256NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司14627. DEFERREDTAX (Continued)Deferred Tax LiabilitiesAccelerated tax depreciationWithholding on undistributed profits Lease liabilities Total加速稅項折舊未分派溢利的預扣稅租賃負債總計RMB’000 RMB’000 RMB’000 RMB’000人民幣千元人民幣千元人民幣千元人民幣千元As at 1 January 2022於2022年1月1日(2,114) — (167) (2,281)Charged to profit or loss (Note 8)於損益扣除（附註8） (409) (1,960) (471) (2,840) As at 31 December 2022 and 1 January 2023於2022年12月31日及2023年1月1日(2,523) (1,960) (638) (5,121)Credited to profit or loss upon payment付款時計入損益— 1,985 — 1,985(Charged)/Credited to in profit or loss (Note 8)於損益（扣除）╱計入（附註8） (1,155) (903) (2,189) (4,247) As at 31 December 2023於2023年12月31日(3,678) (878) (2,827) (7,383)The amounts recognised in the consolidated statement of financial position are as follows:202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Deferred tax assets recognised in the consolidated statement of financial position於綜合財務狀況表確認的遞延稅項資產900760Deferred tax liabilities recognised in the consolidated statement of financial position於綜合財務狀況表確認的遞延稅項負債(5,027) (5,121) Net deferred tax liabilities遞延稅項負債淨額(4,127) (4,361) As at 31 December 2023, deferred tax liabilities have not been recognised on the aggregate amount of temporary dif ferences associated with the undistr ibuted prof its of Sichuan Huanlong for the withholding taxes that would be payable on the unremitted earnings of approximately RMB206,096,000 (2022：RMB191,979,000) that are subject to withholding taxes. The Company controls the dividend policy of Sichuan Huanlong and it is not probable that the temporary differences will reverse in the foreseeable future. During the year ended 31 December 2023, withholding tax of RMB1,082,000 (2022：RMB1,960,000) was charged to profit or loss for the dividends declared by Sichuan Huanlong.27. 遞延稅項（續）遞延稅項負債於綜合財務狀況表確認的金額如下：於2023年12月31日，尚未就四川環龍未分配利潤與未匯出收入應繳預扣稅相關的暫時性差異總額確認遞延稅項負債，需要繳納預扣稅的未匯出收入約為人民幣206,096,000元（2022年：人民幣191,979,000元）。

本公司控制四川環龍的股息政策，故該暫時性差異於可見將來不大可能逆轉。

截至2023年12月31日止年度，四川環龍宣派股息預扣稅人民幣1,082,000元（2022年：人民幣1,960,000元）已計入損益。

NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註147Annual Report 2023年報28.股本本公司股本包括已繳足的普通股。

由於已繳足普通股在收取股息及資本償還方面享有同等資格，故於本公司股東大會上代表一票。

附註：(a)根據股東於2021年12月9日通過的決議案，就本公司的股份溢價賬因全球發售而出現進賬，董事獲授權透過將本公司股份溢價賬進賬3,657,880港元（相當於約人民幣2,990,000元）撥充資本，根據2021年12月8日結束營業時名列本公司股東名冊的股份持有人所持的股權比例，向彼等配發及發行按面值入賬列作繳足的合共365,788,000股股份（「資本化發行」）。

資本化發行自2022年1月11日上市起生效，而所配發及發行的股份於各方面與現存已發行股份享有同等地位。

28. SHARECAPITALNo. of shares RMB’000股份數目人民幣千元Authorised：法定：Ordinary shares of HK$0.01 each每股面值0.01港元的普通股As at 1 January 2022於2022年1月1日38,000,000335Increase in authorised share capital增加法定股本1,962,000,00024,020 As at 31 December 2022,1 January 2023 and 31 December 2023於2022年12月31日、2023年1月1日及2023年12月31日2,000,000,00024,355 Issued and fully paid：已發行及繳足：As at 1 January 2022於2022年1月1日12,0001Capitalisation Issue (note a)資本化發行（附註a） 365,788,0002,990Issue of shares on 11 January 2022 (note b)於2022年1月11日發行股份（附註b） 114,200,000930Issue of shares on 8 February 2022 (note c)於2022年2月8日發行股份（附註c） 3,442,00028 As at 31 December 2022,1 January 2023 and 31 December 2023於2022年12月31日、2023年1月1日及2023年12月31日483,442,0003,949 The Share capital of the Company comprises of fully paid ordinary Shares. As fully paid ordinary Shares are equally eligible to receive dividends and to the repayment of capital and represent one vote at shareholders' meetings of the Company.Notes：(a) Pursuant to the resolutions of the shareholders passed on 9 December 2021, subject to the share premium account of the Company being credited as a result of the global offering, the directors were authorised to allot and issue a total of 365,788,000 shares credited as fully paid at par to the holders of the shares on the register of members of the Company at the close of business on 8 December 2021 in proportion to their shareholdings by way of capitalisation of the sum of HK$3,657,880 (equivalents to approximately RMB2,990,000) standing to the credit of the share premium account of the Company (the “Capitalisation Issue”). The Capitalisation Issue is effective upon listing on 11 January 2022 and the shares allotted and issued rank pari passu in all respects with the existing issued shares.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司14828.股本（續）附註：（續）(b)於2022年1月11日，本公司透過在聯交所進行首次公開發售，以每股股份1.22港元發行114,200,000股新股份，所得款項總額為139,324,000港元（相當於約人民幣113,477,000元）。

(c)於2022年2月8日，本公司在部分行使其授出的超額配股權後，以每股股份1.22港元進一步發行3,442,000股新股份，所得款項總額為4,199,240港元（相當於約人民幣3,429,000元）。

29.儲備本集團權益中各部分期初與期末結餘的對賬載於綜合權益變動表。

股份溢價股份溢價指本公司股份面值與發行本公司股份所得款項淨額之間的差額。

根據開曼群島公司法，本公司股份溢價賬可供撥作分派或派發股息予股東，惟緊隨建議分派或派息當日，本公司能支付正常業務過程中到期之債務。

資本儲備本集團的資本儲備指為於聯交所上市進行重組後本集團旗下附屬公司的股本總數。

法定儲備根據中國公司法，在中國註冊的各公司須就根據中國會計準則釐定的年度法定除稅後溢利（抵銷任何過往年度虧損後）劃撥10%至法定儲備，直至儲備金結餘達到該實體註冊資本的50%為止。

法定儲備可用於抵銷過往年度虧損或增加資本，惟法定儲備的餘額不少於註冊資本的25%。

28. SHARECAPITAL (Continued)Notes：(Continued)(b) On 11 January 2022, the Company issued 114,200,000 new shares at HK$1.22 per share for total gross proceeds of HK$139,324,000 (equivalents to approximately RMB113,477,000) by way of initial public offering of the Company on the Stock Exchange.(c) On 8 February 2022, the Company further issued 3,442,000 new shares at HK$1.22 per share for total gross proceeds of HK$4,199,240 (equivalents to approximately RMB3,429,000) upon partial exercise of the over-allotment option granted by the Company.29. RESERVESThe reconciliation between the opening and closing balances of each component of the Group’s equity is set out in the consolidated statement of changes in equity.Share premiumThe share premium represents the difference between the par value of the shares of the Company and net proceeds received from the issuance of the shares of the Company.Under the Companies Law of the Cayman Islands, the share premium account of the Company may be applied for payment of distributions or dividends to the shareholders provided that immediately following the date on which the distribution or dividend is proposed to be paid, the Company is able to pay its debts as they fall due in the ordinary course of business.Capital reserveThe capital reserve of the Group represents the aggregate of the share capital of the subsidiaries comprising the Group arising from the reorganisation for listing on the Stock Exchange.Statutory reserveIn accordance with the Company Law of the PRC, each of the company that was registered in the PRC is required to appropriate 10% of the annual statutory profit after tax (after offsetting any prior years’ losses), determined in accordance with the PRC accounting standards, to the statutory reserve until the balance of the reserve funds reaches 50% of the entity’s registered capital. The statutory reserve can be utilised to offset prior years’ losses or to increase capital, provided the remaining balance of the statutory reserve is not less than 25% of the registered capital.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註149Annual Report 2023年報30.本公司的財務狀況表於2024年3月28日經董事會批准，並由以下人士代為簽署。

30. STATEMENTOFFINANCIALPOSITIONOF THECOMPANY202320222023年2022年Notes RMB’00 RMB’00附註人民幣千元人民幣千元ASSETSANDLIABILITIES資產及負債Non-current assets非流動資產Interests in subsidiaries於附屬公司的權益1,5941,594Amount due from a subsidiary應收附屬公司款項21,34122,060 22,93523,654 Current assets流動資產Prepayments and other receivables預付款項及其他應收款項4,2768,661Amount due from a subsidiary應收附屬公司款項80 —Financial assets at fair value through profit or loss按公平值計入損益的金融資產19830984Cash and cash equivalents現金及現金等價物73,63574,143 78,82183,788 Current liabilities流動負債Amount due to a subsidiary應付附屬公司款項20,51623,730Accruals應計款項2,1792,403 22,69526,133 Net current assets流動資產淨值56,12657,655 Net assets資產淨值79,06181,309 CAPITALANDRESERVES資本及儲備Share capital股本283,9493,949Reserves儲備75,11277,360 Total equity總權益79,06181,309 Approved by the Board of Directors on 28 March 2024 and were signed on its behalf.Shen Genlian Xie Zongguo沈根蓮謝宗國Director Director董事董事NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司15030.本公司的財務狀況表（續） 附註：本公司的儲備變動如下：於2023年12月31日，本公司的可分派儲備為人民幣73,520,000元（2022年：人民幣75,768,000元）。

31.租賃承擔作為出租人於2023年及2022年12月31日，本集團根據不可撤銷經營租賃就廠房收取的未來最低租賃款項總額如下：30. STATEMENTOFFINANCIALPOSITIONOF THECOMPANY (Continued)Note: The movement of the Company’s reserves are as follows:Share premiumCapital reserveAccumulated losses Total股份溢價資本儲備累計虧損總計RMB’000 RMB’000 RMB’000 RMB’000人民幣千元人民幣千元人民幣千元人民幣千元As at 1 January 2022於2022年1月1日— 1,592 (26,337) (24,745)Profit for the year年內溢利— — 681681Capitalisation issue資本化發行(2,990) — — (2,990)Issue of new shares發行新股份115,948 — — 115,948Transaction costs attributable to issue of new shares發行新股份應佔交易成本(11,534) — — (11,534) As at 31 December 2022 and 1 January 2023於2022年12月31日及2023年1月1日101,4241,592 (25,656) 77,360Profit for the year年內溢利— — 15,57815,578Final dividends paid to equity holders of the Company for the year ended 31 December 2022 (Note 11)截至2022年12月31日止年度已付本公司權益持有人末期股息（附註11） — — (17,826) (17,826) As at 31 December 2023於2023年12月31日101,4241,592 (27,904) 75,112As at 31 December 2023, the distr ibutable reserves of the Company amount ing to RMB73,520,000 (2022：RMB75,768,000).31. LEASECOMMITMENTSAs LessorAt 31 December 2023 and 2022, the Group had future aggregate minimum lease receipts under non-cancellable operating leases in respect of factory building as follows：202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Within one year一年內7991,499After one year but within two years一年後但兩年內— 799 7992,298 NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註151Annual Report 2023年報32.資本承擔於報告期末，本集團的資本承擔如下：33.綜合現金流量表附註融資活動產生的負債對賬：32. CAPITALCOMMITMENTSAs at end of the repor ting date, the Group has capital commitments are as follows：202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Contracted but not provided for已訂約但未撥備Property, plant and equipment物業、廠房及設備18,66983,614 33. NOTESTOTHECONSOLIDATED STATEMENTOFCASHFLOWSReconciliation of liabilities arising from financing activities：BankborrowingsOtherborrowingsDiscountedbillsfinancingLeaseliabilities銀行借款其他借款貼現票據融資租賃負債RMB’000 RMB’000 RMB’000 RMB’000人民幣千元人民幣千元人民幣千元人民幣千元As at 1 January 2022於2022年1月1日105,00022,5343,8211,338Cash flows：現金流量：Proceeds所得款項162,300 — — —Repayment還款(105,300) (18,367) (3,821) —Capital element of lease rentals paid已付租賃租金本金部分— — — (4,840)Interest element of lease rentals paid已付租賃租金利息部分— — — (70)Non-cash transaction：非現金交易：New borrowings (Note 26)新增借款（附註26） — 49,336 — —New leases新租賃— — — 8,804Lease modification租賃修改— — — 4,831Effect of interest charges利息費用影響— — — 70 As at 31 December 2022 and 1 January 2023於2022年12月31日及2023年1月1日162,00053,503 — 10,133Cash flows：現金流量：Proceeds所得款項185,00030,0003,690 —Repayment還款(77,539) (29,968) — —Capital element of lease rentals paid已付租賃租金本金部分— — — (3,871)Interest element of lease rentals paid已付租賃租金利息部分— — — (458)Non-cash transactions：非現金交易：New borrowings (Note 26)新增借款（附註26） — 3,717 — —New leases新租賃— — — 1,252Effect of interest charges利息費用影響— — — 458 As at 31 December 2023於2023年12月31日269,46157,2523,6907,514 NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司15234.關聯方交易除綜合財務報表附註18所披露者外，本集團於年內與其關聯方進行了以下交易：(a)名稱及關係*英文譯名僅供識別。

34. RELATEDPARTYTRANSACTIONSSave as disclosed in Note 18 to the consolidated financial statements, the Group had the following transactions with its related parties during the year：(a) Names and relationshipName of related party Relationship with the Group關聯方名稱與本集團的關係Sichuan Huanlong New Material Ltd.* (四川環龍新材料有限公司)A company controlled by the Controlling Shareholders四川環龍新材料有限公司受控股股東控制的公司Sichuan Huanlong Daily Products Ltd.* (四川省環龍生活用品有限公司)A company controlled by the Controlling Shareholders四川省環龍生活用品有限公司受控股股東控制的公司* The translation of name in English is for identif ication purposes only.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註153Annual Report 2023年報34.關聯方交易（續） (b)關聯方交易附註：環龍新材料及環龍生活用品為沈根蓮女士及周駿先生的聯繫人，而環龍生活用品為環龍新材料的全資附屬公司，故該等關聯交易將合併計算，並視作一項交易處理，構成上市規則第14A章項下的持續關連交易。

向關聯方的銷售乃於本集團正常業務過程中進行，價格及條款並不低於向本集團其他第三方客戶收取並與其訂立的價格及條款。

*僅供識別34. RELATEDPARTYTRANSACTIONS (Continued)(b) Related party transactions202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元(i) Material transactions with related parties(i)與關聯方的重大交易Name of related party Nature關聯方名稱性質Sichuan Huanlong New Material Ltd.* (“Huanlong New Material”) (note)Sales3,0472,796四川環龍新材料有限公司（「環龍新材料」）（附註）銷售Sichuan Huanlong Daily Products Ltd.* (“Huanlong Daily Products”) (note)Sales1,2521,173四川省環龍生活用品有限公司（「環龍生活用品」）（附註）銷售Note: Huanlong New Material and Huanlong Daily Products are associates of Ms. Shen Genlian and Mr. Zhou Jun and Huanlong Daily Products is a wholly owned subsidiary of Huanlong New Material, the related party transactions shall therefore be aggregated and treated as if they were one transaction and constitute continuing connected transactions under Chapter 14A of the Listing Rules.Sales to related parties were conducted in the Group’s normal course of business and at prices and terms no less than those charged to and contracted with other third party customers of the Group.202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元(ii) Key management personnel compensation(ii)主要管理人員報酬Salaries, allowances and benefits薪金、津貼及福利3,8833,511Contribution to defined contribution retirement plans界定供款退休計劃供款254248 4,1373,759 * for identification purposes onlyNOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司15434.關聯方交易（續） (c)與關聯方的結餘附註：應付款項為無抵押、免息及須按要求償還。

貿易結餘的信貸期為60日（2022年：60日）。

賬面值與其公平值相若，並以人民幣計值。

35.資產抵押於各報告期末，本集團若干資產已抵押以取得授予本集團的銀行及其他借款。

本集團已抵押資產於報告期末的賬面總值如下：34. RELATEDPARTYTRANSACTIONS (Continued)(c) Balances with related parties202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Amounts due from related parties:應收關聯方款項：Huanlong New Material環龍新材料— trade —貿易4,8892,431Huanlong Daily Products環龍生活用品— trade —貿易1,655941 6,5443,372 Note: The amounts due are unsecured, interest- f ree and repayable on demand. The trade balances had a credit period of 60 days (2022:60 days). The carrying amounts approximates their fair value and are denominated in RMB.35. PLEDGEOFASSETSAt the end of each reporting period, certain of the Group’s assets were pledged to secure bank and other borrowings of the Group. The aggregate carrying amount of the assets of the Group pledged at the end of the reporting period are as follows:202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Property, plant and equipment (Note 12)物業、廠房及設備（附註12） 145,470128,884Land lease prepayment (Note 15)土地租賃預付款項（附註15） 4,8435,180 150,313134,064 NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註155Annual Report 2023年報36.財務風險管理及公平值計量本集團就其於日常業務過程及投資活動中使用金融工具承受財務風險。

財務風險包括市場風險（包括外幣風險、利率風險及其他價格風險）、信貸風險及流動性風險。

本集團的整體財務風險管理政策專注於金融市場的不可預測性及波動性，及尋求盡量減少對本集團財務狀況、財務表現及現金流量可能造成的不利影響。

概無採用衍生金融工具對沖任何風險。

36.1金融資產及負債分類36. FINANCIALRISKMANAGEMENTANDFAIR VALUEMEASUREMENTSThe Group is exposed to financial risks through its use of financial instruments in its ordinary course of operations and in its investment activities. The financial risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.The Group’s overall f inancial r isk management policies focuses on the unpredictability and volatility at f inancial markets and seeks to minimise potential adverse effects on the financial position, financial performance and cash flows of the Group. No derivative financial instruments are used to hedge any risk exposures.36.1 Categories of financial assets and liabilities202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Financial assets金融資產Financial assets measured at amortised cost:按攤銷成本計量的金融資產：Trade and other receivables貿易及其他應收款項207,615181,894Cash and cash equivalents現金及現金等價物78,63185,618Financial assets at FVTPL:公平值計入損益的金融資產：Listed equity securities and warrants上市股本證券及權證830984 287,076268,496 Financial liabilities金融負債Financial liabilities measured at amortised cost:按攤銷成本計量的金融負債：Trade and other payables貿易及其他應付款項48,38534,416Lease liabilities租賃負債7,51410,133Discounted bills financing貼現票據融資3,690 —Bank borrowings銀行借款269,461162,000Other borrowings其他借款57,25253,503 386,302260,052 NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司15636.財務風險管理及公平值計量（續） 36.2外幣風險外幣風險指金融工具的公平值或未來現金流量因匯率變動而波動的風險。

本集團面臨的外幣風險主要來自其主要以美元和港元計值的銷售交易及上市募集資金，美元及港元並非本集團與該等交易有關的實體的功能貨幣。

於各報告期末，以美元及港元計值及按期末匯率換算為人民幣的金融資產如下：下表顯示本集團的年內除所得稅後溢利及權益對各集團實體的功能貨幣兌美元及港元升值的敏感度。

該等敏感度比率為向主要管理人員內部報告外幣風險時所採用的比率，並代表管理層對外幣匯率可能出現的變動的最佳評估。

36. FINANCIALRISKMANAGEMENTANDFAIR VALUEMEASUREMENTS (Continued)36.2 Foreign currency riskForeign currency risk refers to the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group’s exposure to foreign currency risk arise primarily from its sales transactions and IPO proceeds, which are primarily denominated in US$ and HK$ which are not the functional currencies of the respective entities within the Group to which these transactions relate.As at the end of each of reporting period, US$ and HK$ denominated financial assets translated into RMB at the closing rates, are as follows:2023Tradereceivables Bank balances2023年貿易應收款項銀行結餘RMB’000 RMB’000人民幣千元人民幣千元US$美元1,80658,213HK$港元— 192 1,80658,405 2022Tradereceivables Bank balances2022年貿易應收款項銀行結餘RMB’000 RMB’000人民幣千元人民幣千元US$美元2,39653,637HK$港元— 21,327 2,39674,964 The following table il lustrates the sensitivity of the Group’s profit after income tax for the year and equity in regards to an appreciation in the functional currencies of respective group entities against US$ and HK$. These sensitivity rates are the rates used when reporting foreign currency risk internally to key management personnel and represents management’s best assessment of the possible change in foreign exchange rates.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註157Annual Report 2023年報36.財務風險管理及公平值計量（續） 36.2外幣風險（續）倘有關集團實體的功能貨幣兌各外幣出現相同百分比的貶值，則對本集團的年內溢利及權益具有程度相同但性質相反的影響。

本集團目前並無外幣對沖政策，並密切監察外幣交易規模、外幣資產及負債以管理其外幣風險。

36. FINANCIALRISKMANAGEMENTANDFAIR VALUEMEASUREMENTS (Continued)36.2 Foreign currency risk (Continued)2023SensitivityrateDecreasein profitDecreasein equity2023年敏感度溢利減少權益減少RMB’000 RMB’000人民幣千元人民幣千元US$美元5% 2,5512,551 HK$港元5% 88 2022SensitivityrateDecreasein profitDecreasein equity2022年敏感度溢利減少權益減少RMB’000 RMB’000人民幣千元人民幣千元US$美元5% 2,3812,381 HK$港元5% 906906 The same % depreciat ion in the respect ive group entities’ functional currencies against the respective foreign currencies would have the same magnitude on the Group’s profit for the year and equity but of opposite effect.The Group currently does not have a foreign currency hedging policy, and manages its foreign currency risk by closely monitor the scale of foreign currency transactions, foreign currency assets and liabilities.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司15836.財務風險管理及公平值計量（續） 36.3利率風險利率風險涉及金融工具的公平值或現金流量因市場利率變動而浮動的風險。

按浮動利率計息的銀行借款及其他借款使本集團承受現金流量利率風險，而本公司則不受利率風險影響。

本集團的利率風險主要來自浮息銀行借款及其他借款。

本集團銀行存款承受的利率風險微不足道。

本集團於報告日期借款的利率如下：36. FINANCIALRISKMANAGEMENTANDFAIR VALUEMEASUREMENTS (Continued)36.3 Interest rate riskInterest rate risk relates to the risk that the fair value or cash flows of a financial instrument will fluctuate because of changes in market interest rates. Bank borrowings and other borrowing bearing variable rates expose the Group to cash flow interest rate risk and the Company was not subject to interest rate risk. The Group’s interest rate risk arises primarily from variable rates bank borrowings and other borrowing. The exposure to interest rates for the Group’s bank deposits is considered immaterial.The interest rates of the Group’s borrowings at the reporting date were as follows:202320222023年2022年Interestrate per annum RMB’000Interestrate per annum RMB’000年利率人民幣千元年利率人民幣千元Bank borrowings銀行借款— Floating interest rate —浮息5.90%–6.50% 119,9003.45%–6.50% 40,900— Fixed interest rate —定息3.20%–5.20% 149,5613.65%–5.20% 121,100 269,461162,000 Other borrowing其他借款— Floating interest rate —浮息5.50%–7.10% 57,2526.85%–7.20% 53,503 326,713215,503 NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註159Annual Report 2023年報36.財務風險管理及公平值計量（續） 36.3利率風險（續）由於金額被視為不重大，故概無提供敏感度分析。

相同基點減幅將對本集團於年內的溢利及各報告期末的總權益具有程度相同但性質相反的影響。

利率的假設變動乃經觀察現行市況後視為合理地可能出現的變動，並代表管理層對利率合理地可能出現變動的評估。

該分析乃按年內的相同基準進行。

36.4其他價格風險其他價格風險指由於市場價格變動（利率及匯率變動除外）而引致金融工具之公平值或未來現金流量波動之風險。

本集團就分類為按公平值計入損益的金融資產的上市股本證券及權證投資承受市場價格風險。

由於金額被視為不重大，故概無提供敏感度分析。

36.5信貸風險信貸風險指金融工具的交易對手方未能履行其金融工具條款項下責任，導致本集團蒙受財務虧損的風險。

本集團承受的信貸風險主要來自於日常業務過程中給予客戶的信貸。

本集團承受的最高信貸風險以附註36.1所詳述各報告期末金融資產的賬面值為上限。

36. FINANCIALRISKMANAGEMENTANDFAIR VALUEMEASUREMENTS (Continued)36.3 Interest rate risk (Continued)The sensitivity analysis is not provided as the amount is considered insignificant.The same degree of decrease in basis point would have the same magnitude on the Group’s profit for the year and the total equity as at the end of each reporting period but of opposite effect.The assumed changes in interest rates are considered to be reasonably possible based on observation of current market conditions and represents management’s assessment of a reasonably possible change in interest rate. The analysis is performed on the same basis during the years.36.4 Other price riskOther price risk relates to the risk that the fair values or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than changes in interest rates and foreign exchange rates). The Group is exposed to change in market prices in respect of its investments in listed equity securities and warrants classified as financial assets at FVTPL.The sensitivity analysis is not provided as the amount is considered insignificant.36.5 Credit riskCredit risk refers to the risk that the counterparty to a financial instrument would fail to discharge its obligation under the terms of the financial instrument and cause a financial loss to the Group. The Group’s exposure to credit risk mainly arises from granting credit to customers in the ordinary course of its operations. The Group’s maximum exposure to credit risk is limited to the carrying amounts of the financial assets at end of each reporting period as detailed in Note 36.1.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司16036.財務風險管理及公平值計量（續） 36.5信貸風險（續）貿易應收款項及應收票據本集團通常給予其客戶30至180天（2022年：30至180天）的信貸期。

於接納任何新客戶之前，本集團會評估潛在客戶的信貸質素，並界定客戶的信貸限額。

授予客戶的信貸限額會定期檢討。

為計量預期信貸虧損，貿易應收款項及應收票據已根據共同信貸風險特徵及逾期天數分類。

以下預期信貸虧損亦包含前瞻性資料。

本集團應用香港財務報告準則第9號簡化方法計量預期信貸虧損，使用撥備矩陣及個別評估就所有貿易應收款項及應收票據使用全期預期虧損撥備。

下表詳列統評貿易應收款項及應收票據的預期信貸虧損率：36. FINANCIALRISKMANAGEMENTANDFAIR VALUEMEASUREMENTS (Continued)36.5 Credit risk (Continued)Trade and bills receivablesThe Group usually grants a credit period of 30 to 180 days (2022: 30 to 180 days) to its customers. Before accepting any new customer, the Group assesses the potential customer’s credit quality and defines credit limits by customer. Credit limits granted to customers are reviewed periodically.To measure the expected credit losses, trade and bills receivables have been grouped based on shared credit risk characteristics and the days past due. The expected credit loss below also incorporate forward- looking information.The Group applies the HKFRS 9 simplif ied approach to measuring ECL, which uses a lifetime expected loss allowance for all trade and bills receivables using a provision matrix and individual assessment. The ECL rate of collectively assessed trade and bills receivables are detailed in the following table:CurrentLess than 365 days past dueMore than 365 days past dueIndividually impairedTotal trade receivablesBills receivables即期逾期365天以內逾期365天以上個別減值貿易應收款項總額應收票據As at 31 December 2023於2023年12月31日ECL rate預期信貸虧損率0.7% 1.3% 14.7% 90% 0.9%Gross carrying amount賬面總值111,66262,5209903,821178,99327,244Lifetime ECL全期預期信貸虧損8148041453,4395,202234As at 31 December 2022於2022年12月31日ECL rate預期信貸虧損率0.9% 2.7% 7.3% 90% —Gross carrying amount賬面總值88,61962,4302,7841,821155,65419,907Lifetime ECL全期預期信貸虧損7981,6732021,6394,312 —NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註161Annual Report 2023年報36. 財務風險管理及公平值計量（續） 36.5 信貸風險（續）貿易應收款項及應收票據（續）於截至2023年及2022年12月31日止年度，本集團客戶的過往信貸虧損經驗、債務人的特定前瞻性因素及經濟環境並無重大變動。

因此，全年內的預期信貸虧損率維持穩定。

其他應收款項及應收關聯方款項為盡量減低其他應收款項的信貸風險，本集團管理層已指派一支團隊負責釐定信貸限額及信貸審批。

管理層將根據過往結算記錄及過往經驗以及目前外部資料，定期對其他應收款項的可收回性進行集體及個別評估，其會進行調整以反映概率加權的前瞻性資料，包括相關債務人營運的違約率。

另已制定其他監督程序以確保採取跟進行動以收回逾期債務。

就此方面，其他應收款項的信貸風險被視為甚低。

此外，管理層考慮到附註2.9所載因素後，認為由於違約風險甚低，因該等其他應收款項的信貸風險自初始確認以來並無顯著增加，因此截至2023年12月31日止年度並無確認預期信貸虧損（2022年：無）。

現金及現金等價物信貸風險被視為微不足道，因為對手方為擁有穩健信貸評級的財務機構。

36. FINANCIALRISKMANAGEMENTANDFAIR VALUEMEASUREMENTS (Continued)36.5 Credit risk (Continued)Trade and bills receivables (Continued)Throughout the years ended 31 December 2023 and 2022, the histor ical credi t loss exper ience of the customers of the Group, the forward-looking factors specific to the debtors and the economic environment remains no significant changes. As such, expected credit loss rate throughout the years remains stable.Other receivables and amounts due from related partiesIn order to minimise the credit risk of other receivables, the management of the Group has designated a team responsible for determination of credit limits and credit approvals. The management would make per iodic collective and individual assessment on the recoverability of other receivables based on histor ical set t lement records and past experience as well as current external information and adjusted to reflect probability weighted forward-looking information, including the default rate where the relevant debtors operates. Other monitoring procedures are in place to ensure that follow-up action is taken to recover overdue debts. In these regards, the credit risk of other receivables are considered to be low.Besides, the management is of opinion that there is no signif icant increase in credit r isk on these other receivables since initial recognition as the risk of default is low after considering the factors as set out in Note 2.9 and, thus, no ECL recognised during the year ended 31 December 2023 (2022: nil).Cash and cash equivalentsThe credit r isks are considered to be insignif icant because the counterparties are financial institutions that have sound credit rating.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司16236.財務風險管理及公平值計量（續） 36.6流動資金風險流動資金風險涉及本集團無法履行以現金或其他金融資產結算的金融負債相關責任的風險。

本集團就結算其應付款項以及管理其現金流量面臨流動資金風險。

本集團的目標是維持適當的流動資產水平及取得獲承諾的信貸融資，以應付其短期及較長期的流動資金需求。

以下為本集團於2023年12月31日的金融負債餘下合約到期分析。

倘債權人有權選擇負債的償付時間，則該負債根據本集團可能被要求支付的最早日期列賬。

倘負債須分期償付，則每期還款分配至本集團承諾支付的最早期間。

以下合約到期分析乃根據金融負債未貼現現金流量作出。

36. FINANCIALRISKMANAGEMENTANDFAIR VALUEMEASUREMENTS (Continued)36.6 Liquidity riskLiquidity risk relates to the risk that the Group will not be able to meet its obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group is exposed to liquidity risk in respect of settlement of its payables, and also in respect of its cash f low management. The Group’s objective is to maintain an appropriate level of liquid assets and committed lines of funding to meet its liquidity requirements in the short and longer term.Analysed below is the Group’s remaining contractual maturities for its financial liabilities as at 31 December 2023. When the creditor has a choice of when the liability is settled, the liability is included on the basis of the earliest date when the Group can be required to pay. Where the settlement of the liability is in instalments, each instalment is allocated to the earliest period in which the Group is committed to pay. The contractual maturity analysis below is based on the undiscounted cash flows of the financial liabilities.Withinone year oron demandOverone yearbut withintwo yearsOvertwo years but withinfive years Over five yearsTotalundiscountedamountCarryingamount一年內或按要求起過一年但兩年內起過兩年但五年內起過五年未貼現總額賬面值RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000人民幣千元人民幣千元人民幣千元人民幣千元人民幣千元人民幣千元As at 31 December 2023於2023年12月31日Trade and other payables貿易及其他應付款項48,385 — — — 48,38548,385Lease liabilities租賃負債4,3943,456 — — 7,8507,514Discounted bills financing貼現票據融資3,690 — — — 3,6903,690Bank borrowings銀行借款92,124101,82568,23358,081320,263269,461Other borrowings其他借款30,60318,89412,285 — 61,78257,252 179,196124,17580,51858,081441,970386,302 As at 31 December 2022於2022年12月31日Trade and other payables貿易及其他應付款項34,416 — — — 34,41634,416Lease liabilities租賃負債3,8663,9123,059 — 10,83710,133Bank borrowings銀行借款64,55125,73788,894 — 179,182162,000Other borrowings其他借款28,24423,2906,616 — 58,15053,503 131,07752,93998,569 — 282,585260,052 NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註163Annual Report 2023年報36.財務風險管理及公平值計量（續） 36.7金融工具的公平值計量綜合財務狀況表內按公平值計量的金融資產及負債歸類為公平值層級的三個等級。

該三個等級乃基於計量的輸入值的可觀察程度及重要性界定如下：於報告期末，本集團的投資物業及有關公平值層級資料的詳情如下。

以下各等級乃基於輸入值在計量時可否觀察及是否重大劃分：第一級：相同資產及負債在活躍市場未經調整的報價。

第二級：除第一級包括的報價外，可直接或間接觀察的資產或負債輸入值，且並無涉及重大不可觀察的輸入值。

第三級：重大不可觀察的資產或負債輸入值。

金融資產或負債整體於公平值層級內所屬的等級建基於對公平值計量具有重大意義的最低等級輸入值。

36. FINANCIALRISKMANAGEMENTANDFAIR VALUEMEASUREMENTS (Continued)36.7 Fair value measurements of financial instrumentsFinancial assets and liabilities measured at fair value in the consolidated statement of financial position are grouped into three levels of a fair value hierarchy. The three levels are defined based on the observability and significance of inputs to the measurements, as follows:Details the Group’s investment property and information about the fair value hierarchy as at the end of the reporting period are as follows. The levels are based on the observability and significance of inputs to the measurements, as follows: Level 1: quoted prices (unadjusted) in active markets for identical assets and liabilities. Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, and not using significant unobservable inputs. Level 3: significant unobservable inputs for the asset or liability.The level in the fair value hierarchy within which the financial asset or liability is categorised in its entirety is based on the lowest level of input that is significant to the fair value measurement.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司16436.財務風險管理及公平值計量（續） 36.7金融工具的公平值計量（續） 於綜合財務狀況表內按經常性基準以公平值計量的金融資產及負債在公平值層級中分類如下：截至2023年12月31日止年度，第一級與第二級之間概無發生轉撥（2022年：無）。

由於到期日較短，本集團其他金融資產及負債的賬面值與其於各報告期末的公平值並無重大差異。

36. FINANCIALRISKMANAGEMENTANDFAIR VALUEMEASUREMENTS (Continued)36.7 Fair value measurements of financial instruments (Continued)The financial assets and liabilities measured at fair value in the consolidated statement of financial position on a recurring basis are grouped into the fair value hierarchy as follows:As at 31 December 2023於2023年12月31日Level 1 Level 2 Level 3 Total第一級第二級第三級總計RMB’000 RMB’000 RMB’000 RMB’000人民幣千元人民幣千元人民幣千元人民幣千元Financial assets at FVTPL按公平值計入損益的金融資產— Listed equity securities and warrants—上市股本證券及權證830 — — 830 As at 31 December 2022於2022年12月31日Level 1 Level 2 Level 3 Total第一級第二級第三級總計RMB’000 RMB’000 RMB’000 RMB’000人民幣千元人民幣千元人民幣千元人民幣千元Financial assets at FVTPL按公平值計入損益的金融資產— Listed equity securities and warrants—上市股本證券及權證984 — — 984 There were no transfers between Level 1 and Level 2 during the year ended 31 December 2023 (2022:nil).The carrying amounts of the Group’s other f inancial assets and liabilities are not materially different from their fair value at the end of each reporting period due to their short maturities.NOTESTOTHECONSOLIDATEDFINANCIALSTATEMENTS綜合財務報表附註165Annual Report 2023年報37.資本管理本集團的資本管理目標為確保本集團能夠持續經營業務，並透過為貨品及服務訂立與風險水平相稱的價格，藉以為權益持有人提供充裕回報。

本集團積極及定期檢討其資本架構，並因應經濟狀況變動作出調整。

本集團以淨負債權益比率基準監察其資本架構。

就此而言，淨債務乃界定為借款、貼現票據融資及租賃負債減現金及現金等價物。

為維持或調整該比率，本集團可調整向權益持有人派付股息的金額、發行新股及籌集新債務融資。

於各報告期末的淨負債權益比率如下：37. CAPITALMANAGEMENTThe Group’s capital management objectives are to ensure the Group’s ability to continue as a going concern and to provide an adequate return to the equity holders by pricing goods and services commensurately with the level of risk.The Group actively and regularly reviews its capital structure and makes adjustments in light of changes in economic conditions. The Group monitors its capital structure on the basis of the net debt-to-equity ratio. For this purpose, net debt is defined as borrowings, discounted bills financing and lease liabilities less cash and cash equivalents. In order to maintain or adjust the ratio, the Group may adjust the amount of dividends paid to the equity holders, issue new shares and raise new debt financing.The net debt-to-equity ratio as at the end of each reporting period is as follows:202320222023年2022年RMB’000 RMB’000人民幣千元人民幣千元Bank borrowings銀行借款269,461162,000Other borrowings其他借款57,25253,503Discounted bills financing貼現票據融資3,690 —Lease liabilities租賃負債7,51410,133Less: Cash and cash equivalents減：現金及現金等價物(78,631) (85,618) Net debt淨債務259,286140,018 Total equity總權益409,009373,354 Net debt-to-equity ratio淨負債權益比率63.39% 37.50% PROPERTIESOWNEDBYTHEGROUP本集團所擁有的物業VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司166Type of properties Location Main usage Description物業類型位置主要用途描述Land No.519, Section 2, Xinhua Avenue Chengdu Strait Science and Technology Industry Development Park, Wenjiang District, Chengdu Sichuan Province, the PRCIndustrial use A parcel of land with a site area of approximately 38,391 square metres土地中國四川省成都市溫江區海峽兩岸科技產業開發園新華大道二段519號工業用途一幅地盤面積約38,391平方米的土地Buildings No.519, Section 2, Xinhua Avenue Chengdu Strait Science and Technology Industry Development Park, Wenjiang District, Chengdu Sichuan Province, the PRCTwo factory buildings, one staff dormitory, one staff cafeteria and two power distribution housesBuildings built on the parcel of land at No.519, west section of Xinhua Road, Cross-Strait Science and Technology Industry Development Park, Wenjiang District, Chengdu, Sichuan, the PRC with an aggregate gross floor area of approximately 34,613.24 square metres建築物中國四川省成都市溫江區海峽兩岸科技產業開發園新華大道二段519號兩間廠房、一間員工宿舍、一間員工食堂及兩間配電房建於中國四川省成都市溫江區海峽兩岸科技產業開發園新華路西段519號土地的建築物，總建築面積約為34,613.24平方米PROPERTYHELDFORINVESTMENT持作投資的物業167Annual Report 2023年報Investment PropertyLocation Type of properties Main usage Lease term位置物業類型主要用途租賃年期No.519, Section 2, Xinhua Avenue Chengdu Strait Science and Technology Industry Development Park, Wenjiang District, ChengduSichuan Province, the PRCBuilding One factory building Short lease中國四川省成都市溫江區海峽兩岸科技產業開發園新華大道二段519號建築物一間廠房短期租賃FIVE-YEARFINANCIALSUMMARY五年財務概要VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司168Year ended 31 December截至12月31日止年度201920202021202220232019年2020年2021年2022年2023年RMB’000 RMB’000 RMB’000 RMB’000 RMB’000人民幣千元人民幣千元人民幣千元人民幣千元人民幣千元Revenue收益167,314182,759213,668217,756237,370Cost of sales銷售成本(77,985) (83,140) (100,046) (100,939) (110,881) Gross profit毛利89,32999,619113,622116,817126,489Other income其他收入4,7616,0255,50920,10213,500Fair value loss on financial assets at fair value through profit or loss按公平值計入損益的金融資產公平值虧損— — — (1) (154)Selling and distribution expenses銷售及分銷開支(14,855) (17,764) (19,855) (21,595) (22,400)Administrative and other operating expenses行政及其他經營開支(31,088) (32,145) (31,587) (40,345) (43,326)Finance costs財務成本(6,669) (7,241) (8,229) (10,536) (11,714) Profit before income tax除所得稅前溢利41,47848,49459,46064,44263,395Income tax expense所得稅開支(6,401) (7,481) (8,770) (11,442) (9,712) Profit and total comprehensive income for the year年內溢利及全面收益總額35,07741,01350,69053,00053,683 Assets and liabilities資產及負債Total assets總資產291,533337,562416,764667,688823,057Total liabilities總負債168,254173,270201,782294,334414,048 Stock Code股份代號: 2260(Incorporated in the Cayman Islands with limited liability)ANNUALREPORT年報2023（於開曼群島註冊成立的有限公司）VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司VANOVHOLDINGSCOMPANYLIMITED環龍控股有限公司ANNUALREPORT年報2023CMYCMMYCYCMYK 1 12/4/2024 上午9:36 封面 目錄 公司資料 主席報告 管理層討論及分析 企業管治報告 董事及高級管理層履歷 董事會報告 獨立核數師報告 綜合損益及其他全面收益表 綜合財務狀況表 綜合權益變動表 綜合現金流量表 綜合財務報表附註 本集團所擁有的物業 持作投資的物業 五年財務概要 封底