On August 27th, Guolong announced that Dongguang Chem (01702.HK) has successfully implemented multiple strategies in the first half of 2024, despite facing numerous market challenges, to maintain competitiveness and growth potential, and achieved stable performance, demonstrating strong market performance and technical strength. The group's net profit increased by approximately RMB 15.3 million or 20.5% to approximately RMB 89.8 million from the six months ended June 30, 2023. The increase in net profit was mainly due to the increase in overall gross margin and gross margin rate, which was mainly caused by the decrease in raw material costs leading to a reduction in sales costs. The decrease in raw material costs was mainly due to the average purchase price of coal (the main raw material for the group's urea production) during the reporting period.

The group's revenue decreased by approximately RMB 282.6 million or 17.4% to approximately RMB 1,337.2 million in the reporting period from approximately RMB 1,619.8 million in the six months ended June 30, 2023, mainly due to the average selling price of the group's urea products decreasing by approximately 8.8% from approximately RMB 2,213 per ton in the same period of 2023 to approximately RMB 2,019 per ton. In addition, during the reporting period, the average selling price of the group's automotive urea solution products was approximately RMB 979 per ton, a decrease of approximately 47.8% from approximately RMB 1,876 per ton in the same period of 2023.