Financial Reporting - China Huajun Group Limited will publish its annual report for the year ending December 31, 2024, on April 29, 2025[2] - The audit committee has agreed with the auditor's "disclaimer of opinion" regarding the financial statements[3] - The management's position is that preparing the consolidated financial statements on a going concern basis is appropriate[3]

Revenue Performance - For the fiscal year ending December 31, 2024, the company's revenue was approximately RMB 1,154.9 million, a decrease of about RMB 1,689.9 million or 59.4% compared to RMB 2,844.8 million for the previous fiscal year[6]. - The decline in revenue was primarily due to reduced earnings from the property development and investment segment, with no new property investments or acquisitions made during the year[9]. - The trade and logistics segment contributed approximately RMB 766.1 million (66.3% of total revenue) and the printing segment contributed approximately RMB 319.6 million (27.7% of total revenue) for the fiscal year[10]. - Revenue from the property development and investment segment was only RMB 25.2 million (2.2% of total revenue) compared to RMB 1,562.0 million (54.9% of total revenue) in the previous year[10]. - The group's revenue for the year was approximately RMB 1,154.9 million, a decrease of about RMB 1,689.9 million or 59.4% compared to the previous year's revenue of approximately RMB 2,844.8 million[15]. - The printing segment recorded revenue of approximately RMB 319.6 million, down from approximately RMB 376.5 million in the previous year[15]. - The trade and logistics segment generated revenue of approximately RMB 766.1 million, compared to approximately RMB 856.8 million last year[15]. - The property development and investment segment's revenue was approximately RMB 25.2 million, a significant drop from approximately RMB 1,562.0 million in the previous year[15]. Financial Losses and Stability - The group recorded a loss attributable to shareholders of approximately RMB 1,263.4 million for the year, compared to a loss of approximately RMB 2,679.4 million in the previous year[23]. - The company reported a net loss of approximately RMB 1,264,365,000 for the year ending December 31, 2024[155]. - The company is facing significant uncertainty regarding its ability to continue as a going concern, dependent on various measures to improve liquidity and financial condition[158]. - The company plans to implement cost-cutting measures and restructure debts to enhance its financial stability[158]. - The company's net loss attributable to shareholders rose from RMB 6,350,809 thousand in 2023 to RMB 7,621,857 thousand in 2024, an increase of about 20%[170]. - The company reported a net loss of RMB 1,264,365,000 for 2024, compared to a net loss of RMB 2,671,180,000 in 2023, indicating a 52.8% improvement in losses year-over-year[167]. Assets and Liabilities - As of December 31, 2024, the group's current assets were approximately RMB 2,035.2 million, down from approximately RMB 2,344.5 million in the previous year[25]. - Total liabilities as of December 31, 2024, included overdue principal and interest amounting to approximately RMB 7,566,644 thousand, indicating significant debt pressure[178]. - The company's total liabilities increased from RMB 11,798,177 thousand in 2023 to RMB 12,276,600 thousand in 2024, representing a growth of approximately 4.05%[169]. - Non-current assets decreased to RMB 2,799,355,000 in 2024 from RMB 3,293,439,000 in 2023, reflecting a decline of 15.0%[168]. - Current assets totaled RMB 1,928,255,000 in 2024, down from RMB 2,231,461,000 in 2023, representing a decrease of 13.6%[168]. - The company's cash and cash equivalents decreased to RMB 36,292,000 in 2024 from RMB 65,351,000 in 2023, a decline of 44.5%[168]. Corporate Governance - The board is committed to maintaining high standards of corporate governance and has applied the principles of the Corporate Governance Code as per the Hong Kong Stock Exchange, although it has not complied with a specific provision regarding the separation of roles between the chairman and the CEO[39]. - The board of directors consists of executive and independent non-executive members, with the current composition including Mr. Yan Ruijie as Chairman and CEO, and Ms. Chen Yun as an executive director[42]. - The group emphasizes the importance of independent opinions and encourages directors to express their views freely during meetings[57]. - The board's composition considers various factors including gender, age, cultural background, and professional experience to maintain a balanced and diverse team[58]. - The company has established a shareholder communication policy to ensure timely and balanced information dissemination[97]. Debt Restructuring and Financial Measures - The company is undergoing a debt restructuring plan, with 33 creditors voting on claims totaling HKD 738,564,787, achieving a 96.72% approval rate[183]. - The company plans to maximize cash flow by ceasing or selling several non-core loss-making operations[181]. - The company is negotiating with creditors to restructure debts related to property development projects, which have been suspended due to cash shortages[180]. - The group is currently involved in several unresolved legal proceedings initiated by creditors, contractors, customers, and suppliers in China, but the board believes these will not have a significant financial impact on the group[32]. Environmental and Social Responsibility - The group emphasizes the importance of environmental protection for its long-term development and is committed to continuously reviewing and improving its management practices to minimize environmental impact[33]. - The company made charitable donations amounting to RMB 227,000 during the year[113]. Audit and Compliance - The audit committee ensures compliance with financial reporting standards and maintains effective risk management and internal control systems[81]. - The external auditor, BDO Limited, charged RMB 1.6 million for audit services in the current year, down from RMB 1.8 million in 2023[90]. - The company is committed to maintaining compliance with legal and regulatory requirements, including the disclosure of inside information[96].

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 1,154,944,000, a decrease of 59.4% compared to RMB 2,844,811,000 in 2023[4] - Gross profit for the year was RMB 13,988,000, down 84.8% from RMB 92,367,000 in the previous year[4] - The company reported a net loss of RMB 1,264,365,000 for the year, compared to a net loss of RMB 2,671,180,000 in 2023, indicating a 52.8% improvement[4] - The total comprehensive loss attributable to shareholders was RMB 1,271,048,000, compared to RMB 2,655,326,000 in the previous year[5] - The company reported a basic and diluted loss per share of RMB 20.53, compared to RMB 43.54 in the previous year, showing an improvement of 52.8%[5] - The company reported a total loss before tax of RMB 1,263,326,000 for the year ending December 31, 2024, compared to a loss of RMB 2,698,806,000 for the year ending December 31, 2023[25] - The company reported a total loss attributable to shareholders of RMB 1,263,380,000 for the year ended December 31, 2024, compared to a loss of RMB 2,679,371,000 for the previous year, indicating a reduction in losses[32] - The group recorded a loss attributable to shareholders of approximately RMB 1,263.4 million for the year, an improvement from a loss of RMB 2,679.4 million in the previous year[68] Revenue Breakdown - Total revenue for the year ending December 31, 2024, is projected to be RMB 1,154,944,000, with a breakdown of RMB 319,608,000 from printing, RMB 766,112,000 from logistics, and RMB 25,204,000 from property development[21] - For the year ending December 31, 2023, total revenue was RMB 2,844,811,000, with significant contributions of RMB 376,492,000 from printing and RMB 1,562,039,000 from property development[22] - The logistics segment reported external customer revenue of RMB 766,112,000 for the year ending December 31, 2024, down from RMB 856,810,000 in the previous year[21][22] - The property development and investment segment's revenue fell to RMB 25.2 million, a significant drop from RMB 1,562.0 million in the previous year[55] - The trade and logistics segment contributed approximately RMB 766.1 million to the total revenue, down from RMB 856.8 million in the previous year, while the printing segment generated approximately RMB 319.6 million, a decrease from RMB 376.5 million[54] Assets and Liabilities - Non-current assets decreased to RMB 2,799,355,000 from RMB 3,293,439,000, reflecting a decline of 15.0%[6] - Current liabilities increased to RMB 12,276,600,000 from RMB 11,798,177,000, representing a rise of 4.0%[7] - The company's net debt stood at RMB 7,586,267,000, up from RMB 6,314,233,000, indicating a 20.2% increase[7] - The company has outstanding loans and interest payments totaling approximately RMB 7,566,644,000, which are due by December 31, 2024[10] - The total employee costs, excluding directors' remuneration, were RMB 180,543,000 in 2024, slightly down from RMB 184,169,000 in 2023, indicating a decrease of 2.2%[31] - The company's accounts payable aged over 365 days increased slightly to RMB 134,341,000 in 2024 from RMB 133,397,000 in 2023[36] Debt and Legal Issues - The company has outstanding bank loans totaling RMB 2,658,800,000 as of December 31, 2024, classified as current liabilities, with unpaid interest amounting to RMB 951,586,000 at an annual interest rate of 10.725%[45] - The company has a total outstanding principal of RMB 157,000,000 related to a loan that has been in default since November 2019, with additional penalties amounting to RMB 121,169,000[39] - The company has faced multiple legal challenges and court rulings related to its outstanding debts and loan agreements[46] - The company has been involved in legal proceedings regarding loan defaults, with various court rulings requiring repayment of outstanding amounts[43] - The company has defaulted on loan repayments since February 24, 2022, for a total principal amount of RMB 489,900,000, with outstanding loans classified as current liabilities[48] Restructuring and Future Plans - The company plans to maximize cash flow by ceasing or selling several non-core loss-making operations[12] - The company is implementing cost-cutting measures to minimize operational costs and maintain positive cash flow from its printing, logistics, and trading businesses[13] - The company is seeking approval from the High Court for its restructuring plan, with a hearing scheduled for April 3, 2025[11] - The company believes it will have sufficient operating funds to meet current needs by December 31, 2025, if the restructuring plan is successful[14] - The company plans to continue focusing on its core segments, including printing, logistics, and property development, while exploring opportunities in solar photovoltaic business and hotel services[23][24] Compliance and Governance - The financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and presented in Renminbi, rounded to the nearest thousand[15] - The company has adopted revised Hong Kong Financial Reporting Standards effective from January 1, 2024, with no significant impact on financial performance expected[16] - The independent auditor's report did not express an opinion on the consolidated financial statements due to the inability to obtain sufficient appropriate audit evidence[82] - The group has complied with the standards set forth in the Securities Trading Code for directors during the year[87] - The composition of the nomination committee changed, with Chen Yun appointed to enhance corporate governance and meet new gender diversity regulations[95]

Revenue Performance - For the six months ended June 30, 2024, revenue was approximately RMB 615.5 million, a decrease of approximately RMB 1,403.2 million or 69.5% compared to RMB 2,018.7 million for the same period in 2023[5]. - The decrease in revenue was primarily due to the Property Development and Investments segment, which did not generate one-off revenue recognized in the last period of approximately RMB 1,299.3 million[5]. - The Trading and Logistics segment generated revenue of approximately RMB 422.1 million, down from approximately RMB 485.0 million in the last period, while the Printing segment generated approximately RMB 160.2 million, down from approximately RMB 199.2 million[7]. - The Property Development and Investments segment reported revenue of approximately RMB 10.7 million, a significant decrease from RMB 1,315.6 million in the last period[7]. - The Group's overall revenue breakdown by segment shows Printing at 26.0%, Trading and Logistics at 68.6%, and Property Development and Investments at 1.7% for the reporting period[7]. - Total revenue for the six months ended June 30, 2024, was RMB 615,514, a decrease of 69.5% compared to RMB 2,018,685 for the same period in 2023[22]. Financial Performance - Gross profit was approximately RMB 44.2 million for the Reporting Period, down from approximately RMB 87.6 million in the Last Period, with a gross profit margin of approximately 7.2%[14]. - The Group recorded a loss attributable to shareholders of approximately RMB 408.0 million during the Reporting Period, a significant improvement from a loss of approximately RMB 1,288.8 million in the Last Period[16]. - Loss before tax for the period was RMB 408,403, compared to a loss of RMB 1,308,016 for the same period in 2023[22]. - Loss for the period amounted to RMB 408,825, significantly reduced from RMB 1,280,279 in the previous year[23]. - Total comprehensive expense for the period was RMB 409,938, compared to RMB 1,238,073 in the same period last year[24]. - The segment results showed a loss of RMB 152,571,000 for the first half of 2024, compared to a loss of RMB 855,553,000 for the same period in 2023, indicating an improvement in performance[40]. Expenses and Costs - Selling and distribution expenses decreased by approximately RMB 2.7 million or 8.5% to approximately RMB 29.2 million, representing 4.7% of revenue for the Reporting Period[14]. - Administrative expenses decreased by approximately RMB 11.9 million or 13.0% to approximately RMB 79.6 million, representing 12.9% of revenue for the Reporting Period[14]. - Finance costs for the Reporting Period were approximately RMB 248.2 million, down from approximately RMB 433.4 million in the Last Period[14]. - The Group's finance costs amounted to RMB 248,247,000 for the first half of 2024, reflecting ongoing financial pressures[36]. - Cost of inventories recognized as an expense was RMB 475,375,000, down from RMB 553,621,000, representing a decrease of about 14.1%[58]. Asset and Liability Management - As of June 30, 2024, total shareholders' funds recorded a deficiency of approximately RMB 6,724.2 million, worsening from a deficiency of approximately RMB 6,314.2 million as of December 31, 2023[16]. - The Group's current assets were approximately RMB 2,208.9 million, down from approximately RMB 2,344.5 million as of December 31, 2023, while current liabilities increased to approximately RMB 11,943.2 million from RMB 11,798.2 million[16]. - The current ratio decreased to 0.18 as of June 30, 2024, compared to 0.20 as of December 31, 2023[16]. - The gearing ratio increased to 93.4% as of June 30, 2024, up from 89.9% as of December 31, 2023[16]. - The Group's interest-bearing bank borrowings and other borrowings amounted to approximately RMB 4,916.6 million, slightly down from RMB 4,976.7 million as of December 31, 2023[18]. - The Group's total liabilities increased to RMB 12,088,781,000 as of June 30, 2024, compared to RMB 11,952,189,000 at the end of 2023, marking an increase of about 1.1%[43]. Cash Flow and Liquidity - For the six months ended June 30, 2024, net cash from operating activities was RMB 109,793,000, a significant improvement compared to a net cash outflow of RMB 966,255,000 in the same period of 2023[29]. - The net cash used in investing activities was RMB 128,000, compared to a net cash inflow of RMB 1,194,490,000 in the prior year, indicating a substantial decrease in investment activity[29]. - Financing activities resulted in a net cash outflow of RMB 117,203,000, a decrease from RMB 213,027,000 in the previous year, reflecting reduced borrowing and repayment activities[30]. - The Group has capital and other commitments of RMB 678,054,000 as of June 30, 2024, raising concerns about future liquidity[31]. - The Group's ability to continue as a going concern is in doubt due to significant liabilities and limited cash reserves[31]. Strategic Focus and Future Plans - The Group's focus during the reporting period was on disposing of property assets to repay debt, with no new property projects acquired[5]. - The Group plans to strengthen its enterprise, reduce the gearing ratio, and accelerate the disposal and sale of property assets to improve liquidity and capital structure[20]. - The company is focusing on strategic asset sales to enhance liquidity amid a challenging economic environment[22]. - The Group plans to implement further cost reduction measures to minimize operating costs and retain resources for its printing and logistics businesses, which provide positive cash flows[32]. - The Group expects to have sufficient working capital to meet its requirements for the twelve-month period ending 30 June 2025, contingent on the success of its restructuring plans[32]. Legal and Compliance Issues - The Group is involved in several outstanding legal proceedings in the PRC, but the directors believe these will not have a significant financial impact[125]. - The Company submitted an application for a Scheme Meeting of creditors on July 9, 2024, with a hearing scheduled for November 13, 2024[125]. - Legal actions have been initiated by creditors against the Group's subsidiaries for the recovery of outstanding debts, highlighting potential risks in financial management[101][102]. Shareholder Information - The Group's share capital remained stable at RMB 55,983, unchanged from the previous period[27]. - The Group has not declared any interim dividend for the six months ended June 30, 2024, consistent with the previous year[61]. - Huajun Group Limited is the largest shareholder, holding 44,450,619 shares, which is approximately 72.22% of the issued share capital[143].

Revenue Performance - For the six months ended June 30, 2024, revenue was approximately RMB615.5 million, a decrease of approximately RMB1,403.2 million or 69.5% compared to RMB2,018.7 million for the same period in 2023[6]. - The decrease in revenue was mainly due to the Property Development and Investments segment, which did not generate one-off revenue of RMB1,299.3 million recognized in the last period from a project sold for approximately RMB2,170.0 million[6]. - The Trading and Logistics segment generated revenue of approximately RMB422.1 million, down from approximately RMB485.0 million in the last period, attributed to a shift in product mix towards higher-margin petrochemical products[6]. - The Printing segment's revenue was approximately RMB160.2 million, a decrease from approximately RMB199.2 million in the last period, due to strict inventory control by major customers deferring orders[6]. - Revenue from Property Development and Investments was approximately RMB10.7 million, significantly down from approximately RMB1,315.6 million in the Last Period[14]. - The decrease in revenue was primarily due to the lack of one-off revenue from property sales, which amounted to approximately RMB1,299.3 million in the Last Period[14]. - Total revenue for the six months ended June 30, 2024, was RMB615.5 million, a significant decrease from RMB2,018.7 million in the same period last year, representing a decline of approximately 69.5%[21]. - Revenue from the Printing segment was approximately RMB160.2 million, down from approximately RMB199.2 million in the Last Period[14]. - Revenue from the Trading and Logistics segment was approximately RMB422.1 million, a decrease from approximately RMB485.0 million in the Last Period[14]. Financial Performance - Gross profit for the Reporting Period was approximately RMB44.2 million, a decrease from RMB87.6 million in the Last Period, with a gross profit margin of 7.2% compared to 4.3% previously[15]. - The Group recorded a loss attributable to shareholders of approximately RMB408.0 million, compared to a loss of approximately RMB1,288.8 million for the Last Period[17]. - The loss for the period ended June 30, 2024, was RMB408,825,000, a significant improvement from a loss of RMB1,280,279,000 in the same period of 2023, representing a reduction of approximately 68%[24]. - Total comprehensive expense for the period was RMB409,938,000, compared to RMB1,238,073,000 in the prior year, indicating a decrease of about 67%[25]. - The Group recorded a loss on changes in fair value of investment properties of RMB100.0 million, significantly improved from a loss of RMB829.0 million in the Last Period[16]. - The Group recorded a loss before tax of RMB408,403,000 for the first half of 2024, compared to a loss of RMB1,308,016,000 in the same period of 2023, showing a significant reduction in losses[41]. - The Group's total comprehensive loss for the period ended June 30, 2024, was RMB6,724,171,000, reflecting a significant increase in accumulated losses compared to RMB4,858,755,000 for the same period in 2023[29]. Expenses and Costs - Selling and distribution expenses decreased by approximately RMB2.7 million or 8.5% to approximately RMB29.2 million, representing 4.7% of revenue for the Reporting Period[15]. - Administrative expenses decreased by approximately RMB11.9 million or 13.0% to approximately RMB79.6 million, accounting for 12.9% of revenue for the Reporting Period[15]. - Finance costs for the Reporting Period were approximately RMB248.2 million, down from RMB433.4 million in the Last Period[15]. - Cost of sales and services was RMB571.3 million, down from RMB1,931.1 million, resulting in a gross profit of RMB44.2 million compared to RMB87.6 million previously[21]. - The corporate administrative expenses for the first half of 2024 were RMB7,499,000, compared to RMB5,738,000 in the same period of 2023[37]. - Depreciation of property, plant, and equipment was RMB34,926,000, down from RMB38,428,000, indicating a decrease of approximately 9.8%[59]. Assets and Liabilities - Total assets as of June 30, 2024, were RMB5,364,610,000, down from RMB5,637,956,000 as of December 31, 2023, reflecting a decrease of approximately 4.8%[44]. - Current assets were approximately RMB2,208.9 million as of June 30, 2024, down from approximately RMB2,344.5 million as of December 31, 2023[17]. - Total liabilities increased to RMB12,088,781,000 as of June 30, 2024, compared to RMB11,952,189,000 at the end of 2023, marking an increase of about 1.1%[44]. - The Group's current ratio was 0.18 as of June 30, 2024, compared to 0.20 as of December 31, 2023[17]. - The gearing ratio was 93.4% as of June 30, 2024, up from 89.9% as of December 31, 2023[17]. - The total deficiency attributable to shareholders was RMB(6,759,944,000) as of June 30, 2024, compared to RMB(6,350,809,000) at the end of 2023, indicating an increase in deficiency of about 6.4%[28]. Cash Flow and Financing - For the six months ended June 30, 2024, the net cash from operating activities was RMB109,793,000, compared to a net cash outflow of RMB966,255,000 in the same period of 2023[30]. - The net cash used in investing activities for the first half of 2024 was RMB128,000, contrasting sharply with a net cash inflow of RMB1,194,490,000 in the same period of 2023[30]. - Net cash used in financing activities for the six months ended June 30, 2024, was RMB117,203,000, compared to RMB213,027,000 for the same period in 2023[31]. - The Group's cash flow from financing activities was impacted by a repayment of borrowings totaling RMB67,115,000[31]. - The Group's total borrowings amounted to RMB4,916,553,000 as of June 30, 2024, down from RMB4,976,651,000 as of December 31, 2023[74]. - The Group has outstanding bank borrowings of RMB300,000,000, classified as current liabilities, with outstanding interest and penalties totaling approximately RMB148,630,000 as of June 30, 2024[102]. Legal and Restructuring Issues - The Group is negotiating with creditors to restructure borrowings by set-off of pledged assets, as certain subsidiaries face bankruptcy petitions due to overdue borrowings[33]. - Actions are being taken to cease or dispose of non-core loss-making business operations to maximize cash flows[33]. - An offshore debt restructuring scheme is underway to oppose a winding-up petition filed by a bondholder, with a hearing scheduled for 13 November 2024[33]. - The conditions indicate significant uncertainty regarding the Group's ability to continue as a going concern[32]. - The Group's financial position reflects significant defaults and ongoing legal proceedings related to its borrowings, impacting overall liquidity and operational control[82]. Shareholder Information - The company reported a basic and diluted loss per share of RMB(6.63) for the six months ended June 30, 2024, compared to RMB(20.94) in the same period of 2023[24]. - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024, consistent with the last period[127]. - The Company has confirmed compliance with the Model Code for Securities Transactions by Directors during the reporting period[129]. - The Group has a share capital of RMB55,983,000 and a share premium of RMB2,557,466,000 as of June 30, 2024, reflecting stable equity structure[29]. - Huajun Group Limited is the largest shareholder, holding 44,450,619 shares, which is approximately 72.22% of the issued share capital[144]. Corporate Governance - The Board has five Directors, with three being independent non-executive directors, ensuring a balance of power within the Board[128]. - The Company has complied with the Corporate Governance Code, except for the separation of the roles of Chairman and CEO, which are currently held by the same individual[128]. - The Audit Committee reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2024, and confirmed compliance with applicable accounting standards and legal requirements[162].

Revenue Performance - For the fiscal year ending December 31, 2023, the company reported revenue of approximately RMB 2,844.8 million, an increase of approximately RMB 1,203.6 million or 73.3% compared to RMB 1,641.2 million for the previous year[9]. - The property development and investment segment generated revenue of approximately RMB 1,299.3 million, significantly boosted by the forced judicial auction of several properties, which yielded approximately RMB 2,170.0 million[9][12]. - The trade and logistics segment contributed stable revenue of approximately RMB 856.8 million, down from RMB 1,035.1 million in the previous year, attributed to changes in product structure focusing on higher-margin petrochemical products[13]. - The printing segment's revenue decreased to approximately RMB 376.5 million from RMB 491.3 million, due to strict inventory controls by major clients delaying orders[13]. - The overall increase in revenue is primarily attributed to the growth in property development and investment activities[9][12]. - The company's total revenue for the year ended December 31, 2023, was approximately RMB 2,844.8 million, an increase of about RMB 1,203.6 million or 73.3% compared to RMB 1,641.2 million in the previous year[22]. - Revenue from the printing segment was approximately RMB 376.5 million, down from RMB 491.3 million in the previous year, reflecting a decrease due to strict inventory control by major clients[23]. - The trade and logistics segment recorded revenue of approximately RMB 856.8 million, a decrease from RMB 1,035.1 million, attributed to a shift in product structure towards higher-margin petrochemical products[23]. - The property development and investment segment generated revenue of approximately RMB 1,562.0 million, significantly up from RMB 41.3 million in the previous year, driven by the forced sale of several properties[22]. Financial Performance - The gross profit for the year was approximately RMB 92.4 million, compared to a gross loss of RMB 344.7 million in the previous year, resulting in a gross margin of 3.2%[24]. - Selling and distribution expenses decreased by approximately RMB 10 million or 13.4% to RMB 64.8 million, representing 2.3% of revenue[26]. - Administrative expenses were reduced by approximately RMB 48.8 million or 21.0% to RMB 184.0 million, accounting for 6.5% of revenue[27]. - Financial expenses decreased to approximately RMB 879.8 million from RMB 1,305.5 million, primarily due to reduced interest from bank loans[28]. - The company recorded a loss attributable to shareholders of approximately RMB 2,679.4 million for the year, an improvement from a loss of RMB 2,822.3 million in the previous year[31]. - As of December 31, 2023, total equity was a loss of approximately RMB 6,314.2 million, compared to a loss of RMB 3,667.1 million the previous year[33]. - The group reported a net loss of approximately RMB 2,671,180,000 for the year ended December 31, 2023[188]. - The group has total liabilities including overdue principal, interest, and penalties amounting to approximately RMB 9,453,660,000 and net debt of approximately RMB 6,314,233,000[188]. - The group is involved in multiple litigation cases related to overdue loans and accrued interest totaling approximately RMB 7,128,943,000[188]. - The independent auditor has not expressed an opinion on the financial statements due to significant uncertainties regarding the group's ability to continue as a going concern[187]. Cost Management and Restructuring - The company plans to continue cost-saving measures and restructure loss-making businesses to strengthen its operations and reduce debt levels[10]. - The company has reduced its scale and sold its core financing services business due to ongoing operational losses in that segment[12]. - The group is taking measures to improve liquidity and financial conditions, including asset sales and cost-cutting initiatives[190]. Corporate Governance - The board is dedicated to maintaining high standards of corporate governance and has complied with applicable governance codes, with a noted exception regarding the separation of roles between the chairman and CEO[52]. - The board of directors has confirmed compliance with the Securities Trading Code for all directors this year[53]. - The board held a total of 13 meetings, one annual general meeting, and one extraordinary general meeting during the year[65]. - The company appointed Chen Yun as an executive director on March 31, 2023, and Mo Yige as an independent non-executive director on April 1, 2023[67]. - The board consists of five members, including three independent non-executive directors, ensuring compliance with listing rules[63]. - The company has established a procedure for directors to seek independent professional advice at the company's expense[65]. - The chairman and CEO roles have been combined since June 28, 2023, with Yan Ruijie assuming both positions[63]. - The company has received written confirmations of independence from all independent non-executive directors, affirming their compliance with listing rules[58]. - The board regularly reviews its composition and governance practices to align with local and international standards[63]. - The company has a structured agenda for board meetings, ensuring effective planning and participation[62]. - The board believes that the combined roles of chairman and CEO provide strong and consistent leadership for the company[63]. - The board consists of five directors, with three being independent non-executive directors, meeting the requirement of at least one-third independence[76]. - The board has a gender diversity ratio of 20%, with one female director and four male directors[82]. - The company encourages continuous professional development for all directors to enhance their knowledge and skills[71]. - The nomination committee regularly monitors the implementation of the board diversity policy to ensure its effectiveness[77]. - The company has established mechanisms to ensure independent opinions and suggestions are provided to the board for objective decision-making[73]. - All audit committee members are independent non-executive directors, ensuring no involvement in daily operations[76]. - The company provides appropriate insurance for directors and senior management against legal actions arising from company activities[74]. - The board's composition is considered balanced and diverse, aligning with the company's business development needs[80]. - The company aims to gradually increase the proportion of female members on the board as suitable candidates are identified[82]. - The nomination committee will discuss and recommend measurable targets for achieving board diversity[78]. - The company has adopted a nomination policy to ensure a balanced board in terms of skills, experience, and diversity[84]. - The nomination committee is responsible for evaluating and selecting candidates for the board, ensuring compliance with independence guidelines[87]. - As of December 31, 2023, the compensation committee consists of four members, with the majority being independent non-executive directors[88]. - The compensation committee held one meeting this year to review the group's compensation policies and individual remuneration for directors and senior management[94]. - The nomination committee also held one meeting this year, focusing on the board's structure, composition, and diversity policy[97]. - The company emphasizes the importance of board diversity as a key factor for maintaining competitive advantage[96]. - The compensation for senior management in the range of HKD 1,500,001 to HKD 2,000,000 included one individual in 2023, compared to one individual in the range of HKD 2,000,001 to HKD 2,500,000 in 2022[89]. - The nomination committee evaluated the independence of non-executive directors and identified candidates with diverse skills and experiences[98]. - The company aims to attract and retain executives necessary for successful operations and growth strategies through its compensation policy[88]. - The nomination committee's recommendations are based on objective criteria and the benefits of board diversity[96]. Risk Management and Compliance - The company is taking steps to address concerns regarding its ability to continue as a going concern, including plans for offshore debt restructuring[109]. - The audit committee consists of three independent non-executive directors and regularly meets with senior management and external auditors[106]. - The company has engaged an independent service provider to assist in monitoring the effectiveness of its risk management and internal control systems[113]. - The audit committee reviewed the independence and objectivity of the external auditor and approved their remuneration and terms of engagement[107]. - The audit committee assists the board in reviewing corporate governance policies and practices to ensure compliance with legal and regulatory requirements[108]. - The company emphasizes the importance of environmental, social, and governance (ESG) factors in its risk management processes[113]. - The audit committee will review the risk management and internal control systems at least annually to protect shareholder interests and the company's assets[113]. - The board believes that the group's risk management and internal control systems are effective in significant aspects, but there is room for improvement in the execution of internal control procedures[116]. - The company conducted an anti-corruption training for employees in the year ending December 31, 2023, with no reported violations related to bribery and corruption[117]. Shareholder Communication and Dividends - The company has adopted a dividend policy to allow shareholders to participate in profits while retaining sufficient reserves for future growth[121]. - The board is committed to promoting good corporate governance practices and aims to maintain and improve the quality and standards of corporate governance[128]. - The company has established a written policy for shareholder communication to ensure timely and equal access to information regarding financial performance and strategic objectives[119]. - The company revised its articles of association to comply with core shareholder protection standards and relevant Bermuda laws[123]. - The company ensures that shareholders are informed of voting procedures to comply with listing rules and charter documents[120]. - The company has implemented measures to handle and disclose inside information in accordance with the Securities and Futures Ordinance[117]. - The company emphasizes effective communication with shareholders to enhance their understanding of the business and strategy[119]. - The company has a process for shareholders to request special general meetings, requiring a minimum of 10% of the paid-up capital with voting rights[126]. - The board did not recommend any final dividend for the year, consistent with the previous year[134]. - As of December 31, 2023, the company had no distributable reserves[144]. Employee and Shareholder Information - The company’s directors and key executives held a total of 880 shares, representing approximately 0.01% of the issued share capital[156]. - The company’s stock options granted to directors have an exercise price of HKD 78.00, with a validity period until February 6, 2027[157]. - There were no related party transactions that required disclosure under the listing rules during the year[153]. - As of December 31, 2023, Huajun Group Limited holds 44,450,619 shares, representing approximately 72.22% of the company's issued share capital[160]. - Mr. Meng Guangbao, as the beneficial owner of Huajun Group Limited, is also considered to hold the same 72.22% stake in the company[160]. - Ms. Bao Le, as the spouse of Mr. Meng, holds 45,319,139 shares, which accounts for approximately 73.63% of the company's issued share capital[160]. - The total number of unexercised share options granted under the share option scheme as of December 31, 2023, is 77,470, down from 503,556 the previous year, representing about 0.13% of the company's issued share options[168]. - The share option scheme allows for a maximum of 10% of the issued share capital to be granted as options, with a total of 6,066,920 shares available for issuance under the plan[166]. - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the year[173]. - The company has maintained appropriate insurance to cover potential legal claims against its directors and senior officers throughout the year[174]. - There were no stock-linked agreements entered into by the company as of December 31, 2023[175]. - The company has not engaged in any arrangements that would allow its directors to benefit from purchasing shares or debt securities of the company or any other entity during the year[170]. - The share option scheme is effective until October 24, 2027, and requires participants to pay HKD 100 upon acceptance of the option grant[166]. - As of December 31, 2023, the group had a total of 1,676 employees, down from 2,130 employees as of December 31, 2022[177].

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 2,844,811,000, an increase of 73.3% compared to RMB 1,641,178,000 in 2022[4] - Gross profit for 2023 was RMB 92,367,000, a significant improvement from a gross loss of RMB 344,724,000 in 2022[4] - The company reported a net loss of RMB 2,671,180,000 for 2023, slightly better than the net loss of RMB 2,828,391,000 in 2022[5] - The company reported a total loss of RMB 1,801,047,000 from all segments for the year ended December 31, 2023[27] - The company reported a net loss of approximately RMB 2,671,180,000 for the year ending December 31, 2023[12] - The company recorded a loss attributable to shareholders of approximately RMB 2,679.4 million for the year, compared to a loss of RMB 2,822.3 million in the previous year[85] Assets and Liabilities - The total assets decreased to RMB 5,560,598,000 in 2023 from RMB 8,200,000,000 in 2022, reflecting a reduction of approximately 32.1%[7] - Current liabilities decreased to RMB 11,798,177,000 in 2023 from RMB 14,547,705,000 in 2022, a reduction of about 19.0%[9] - Total liabilities include net current liabilities of approximately RMB 9,453,660,000 and net debt of approximately RMB 6,314,233,000[12] - The company’s equity attributable to shareholders decreased to RMB (6,350,809,000) in 2023 from RMB (3,695,483,000) in 2022, indicating a worsening of 72.0%[9] - The company has outstanding bank loans totaling RMB 22,499,000 as of December 31, 2023, with unpaid interest of RMB 108,000 and penalties and compound interest of approximately RMB 8,375,000[53] Cash Flow and Financial Management - The company’s cash and cash equivalents increased to RMB 65,351,000 in 2023 from RMB 59,739,000 in 2022, showing a growth of 9.0%[7] - The company is taking actions to cease or sell several non-core loss-making operations to maximize cash flow[15] - The company aims to implement cost-cutting measures to minimize operational costs and maintain positive cash flow from its printing and logistics businesses[16] - The company expects to have sufficient operating funds to meet its current needs by December 31, 2024, if the planned measures are successfully implemented[17] Revenue Breakdown - Total revenue from customer contracts amounted to RMB 2,839,050,000, with significant contributions from printing products (RMB 376,492,000) and property development (RMB 1,559,985,000)[22] - The property development and investment segment generated revenue of approximately RMB 1,299.3 million, significantly contributing to the overall revenue increase[66] - The trade and logistics segment reported revenue of RMB 856.8 million, a decrease from RMB 1,035.1 million in the previous year, attributed to changes in product structure[67] - The printing segment's revenue decreased to RMB 376.5 million from RMB 491.3 million, due to strict inventory control by major clients[67] Operational Changes and Future Plans - The company plans to relocate its main operating location to Hong Kong starting January 12, 2024, which may impact future operational strategies[10] - The company plans to restructure its property business and is negotiating with creditors to offset mortgage assets against debts[13] - The company plans to continue focusing on its core segments while managing its other divisions, including solar photovoltaic and hotel services[26] - The company anticipates a challenging business environment for its printing operations and plans to allocate more resources to develop new clients[71] Legal and Compliance Issues - The company is involved in multiple litigation cases related to overdue loans and accrued interest totaling approximately RMB 7,128,943,000[12] - The company has faced challenges in the property development and investment segment due to tightened financing policies and liquidity issues since 2022, leading to a focus on selling existing projects[74] - The independent auditor did not express an opinion on the consolidated financial statements due to the inability to obtain sufficient appropriate audit evidence[101] Cost Management - Total employee costs decreased to RMB 184,169 thousand in 2023 from RMB 225,768 thousand in 2022, reflecting a reduction of approximately 18.4%[37] - Selling and distribution expenses decreased by approximately RMB 10 million or 13.4% to about RMB 64.8 million, representing 2.3% of revenue[79] - Administrative expenses decreased by approximately RMB 48.8 million or 21.0% to about RMB 184.0 million, representing 6.5% of revenue[80] - Financial expenses were approximately RMB 879.8 million, a decrease from RMB 1,305.5 million in the previous year, mainly due to reduced interest from bank loans[81] Shareholder Information - The company has not proposed any final dividends for the year[111] - The annual general meeting of shareholders is scheduled for June 28, 2024, with a suspension of share transfer registration from June 25 to June 28, 2024[113] - The company's annual performance announcement will be published on the Hong Kong Stock Exchange website and the company's website, with the 2023 annual report to be released in due course[114]

Revenue Performance - For the six months ended June 30, 2023, revenue was approximately RMB 2,018.7 million, an increase of approximately RMB 1,140 million or 129.7% compared to RMB 878.7 million for the same period in 2022[13]. - The increase in revenue was primarily driven by the Property Development and Investments segment, which recorded revenue of approximately RMB 1,315.6 million, up approximately RMB 1,288.2 million from RMB 27.4 million in the last period[14]. - The Trading and Logistics segment generated revenue of approximately RMB 485.0 million, a decrease from RMB 557.0 million in the last period, attributed to a shift in product mix towards higher-margin petrochemical products[15]. - The Printing segment reported revenue of approximately RMB 199.2 million, down from RMB 257.5 million in the last period, due to strict inventory control by major customers[15]. - The overall revenue breakdown by segment for the six months ended June 30, 2023, was: Printing 9.9%, Trading and Logistics 24.0%, Property Development and Investments 65.2%, and Others 0.9%[19]. Financial Losses and Challenges - The Group recorded a loss attributable to shareholders of approximately RMB 1,288.8 million during the Reporting Period, compared to a loss of approximately RMB 1,133.8 million for the Last Period[47][53]. - The Group recorded a loss on changes in fair value of investment properties of RMB 829.0 million, compared to a loss of RMB 260.2 million in the Last Period[46]. - The Group anticipates a challenging business environment for the printing business due to customer inventory control and market volatility, and plans to allocate more resources to develop new customers[21]. - The Group's future liquidity is uncertain, and it may be unable to operate as a going concern if it fails to achieve its restructuring plans[96]. - The Group incurred a net loss of RMB 1,280,279,000 for the period ended June 30, 2023[94]. Financial Position and Ratios - As of June 30, 2023, total shareholders' funds recorded a deficiency of approximately RMB 4,858.8 million, an increase from a deficiency of approximately RMB 3,667.1 million as of December 31, 2022[48][54]. - The Group's current assets were approximately RMB 5,021.2 million, down from approximately RMB 5,560.6 million as of December 31, 2022, with current liabilities at approximately RMB 13,178.1 million[49][55]. - The current ratio was 0.39 as of June 30, 2023, slightly up from 0.38 as of December 31, 2022[49][55]. - The gearing ratio increased to 76.4% as of June 30, 2023, compared to 61.4% as of December 31, 2022[50]. - The Group's total liabilities increased to RMB 13,379,055,000 as of June 30, 2023, compared to RMB 14,772,157,000 at the end of 2022[133]. Cost Management and Expenses - Selling and distribution expenses decreased by approximately RMB 2.5 million or 7.3% to approximately RMB 31.9 million, representing 1.6% of revenue for the Reporting Period[37]. - Administrative expenses decreased by approximately RMB 28.3 million or 23.6% to approximately RMB 91.5 million, representing 4.5% of revenue for the Reporting Period[38]. - The Group plans to implement further cost reduction measures to minimize operating costs and retain resources for its printing and logistics and trading business, which provide positive cash flows[103]. - The Group aims to implement cost-cutting measures to minimize operating costs and maintain positive cash flow for its printing, logistics, and trading businesses[107]. Asset Management and Disposals - The Group disposed of its core financial services business in May 2023 due to ongoing operating losses and market volatility[12]. - The Group plans to focus on disposing of existing property projects and discussing loan repayment matters with creditors due to challenges in the Property Development and Investments segment[26]. - The Group plans to maximize cash flow by ceasing or selling several non-core loss-making operations[107]. - The Group is actively monitoring opportunities for strategic asset disposals to enhance liquidity in a competitive market environment[71]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the reporting period were approximately RMB 73,556,000, down from RMB 152,204,000 at the beginning of the period[90]. - For the six months ended June 30, 2023, the Group reported a net cash inflow from investing activities of RMB 1,194,490,000, compared to a net outflow of RMB 24,292,000 for the same period in 2022[89]. - The Group's capital and other commitments as of June 30, 2023, amounted to RMB 654,691,000[94]. - The Group is in discussions with legal counsel, financial advisors, and corporate bondholders for debt restructuring and revised repayment plans[104]. Segment Performance - For the six months ended June 30, 2023, the Group reported segment revenues of RMB 1,999,807,000 from external customers, with a total loss before tax of RMB 1,308,016,000[124]. - The printing segment generated revenue of RMB 199,226,000, while the trading and logistics segment contributed RMB 484,954,000, and property development and investments accounted for RMB 1,315,627,000[124]. - The Group's total segment results showed a loss of RMB 855,553,000, with unallocated corporate administrative expenses of RMB 5,738,000[124]. Debt and Borrowing - The Group's total borrowings as of June 30, 2023, were RMB 6,421,057,000, a decrease of 4.5% from RMB 6,724,068,000 at the end of 2022[181]. - The total outstanding principal amount of defaulted borrowings was approximately RMB 6,227,567,000 as of June 30, 2023, down from RMB 6,609,578,000 at the end of 2022[184]. - The Group's financial obligations include significant penalties and interest due to breaches in repayment terms[198]. - The Group is taking actions to cease or dispose of certain non-core loss-making business operations to maximize cash flows[102].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任 何部分內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 CHINA HUAJUN GROUP LIMITED 中國華君集團有限公司 （於百慕達註冊成立之有限公司） （股份代號：377） 截至二零二三年六月三十日止六個月 中期業績公告 中國華君集團有限公司（「本公司」）董事會（「董事會」）謹此宣佈本公司及其附屬 公司（「本集團」）截至二零二三年六月三十日止六個月的未經審核業績。本公告載 列本公司二零二三年中期報告全文，符合香港聯合交易所有限公司證券上市規則 中有關中期業績初步公告附載的資料的相關規定。本公司二零二三年中期報告的 印刷版本將於二零二三年九月上旬寄發予本公司股東。 業績公告發佈 本中期業績公告可在香港交易及結算所有限公司網站(http://www.hkexnews.hk)及 本公司網站(http://www.chinahuajungroup.com)閱覽。 ...

Financial Performance - The company's revenue for the year ended December 31, 2022, was approximately RMB 1,641.2 million, a decrease of about RMB 1,871.2 million or approximately 53.3% compared to RMB 3,512.4 million for the previous year[8]. - The group reported a gross loss of approximately RMB 344.7 million, with a gross loss margin of about 21.0%, compared to a gross profit of approximately RMB 74.1 million and a gross profit margin of about 2.1% last year[24]. - The group recorded a loss attributable to shareholders of approximately RMB 2,822.3 million for the year, compared to a loss of approximately RMB 1,778.0 million last year[31]. - The group reported a net loss of approximately RMB 2,828,391,000 for the year ended December 31, 2022[190]. - The financial statements were prepared based on the going concern assumption, contingent on the successful implementation of management's plans[196]. Revenue Breakdown - The trade and logistics segment contributed approximately 63.1% of total revenue, while the printing segment accounted for about 29.9%[13]. - Domestic sales in China continued to be the main source of revenue, representing approximately 78.5% of total revenue, down from 89.3% in the previous year[13]. - The property development and investment segment's revenue decreased significantly, contributing only 2.5% to total revenue compared to 19.8% the previous year[14]. - Revenue from the United States increased to RMB 215.0 million, representing 13.1% of total revenue, compared to 5.1% the previous year[16]. - The printing segment recorded revenue of approximately RMB 491.3 million, while the trade and logistics segment generated revenue of approximately RMB 1,035.1 million, both showing significant declines from the previous year[21]. Cost Management and Financial Strategy - The outlook indicates a focus on cost-saving measures, restructuring loss-making businesses, and improving liquidity and capital structure[9]. - The company plans to accelerate the disposal and sale of property assets to strengthen its financial position[9]. - Administrative expenses decreased by approximately RMB 72.4 million or 23.7% to about RMB 232.8 million, representing 14.2% of revenue[26]. - Financial expenses increased to approximately RMB 1,305.5 million from RMB 1,097.3 million last year, primarily due to issues with liquidity affecting capitalized interest expenses[27]. Corporate Governance - The board of directors has established a strategic policy framework and business plans to oversee business performance[53]. - The role of chairman and CEO has been separated, with Yan Ruijie appointed as acting chairman and CEO since December 30, 2022[60]. - The independent non-executive directors have confirmed their independence in accordance with listing rules, contributing valuable insights to the board[58]. - The company has taken measures to ensure strict compliance with listing rules and corporate governance codes[63]. - The board's decision-making process involves collaboration among all members, ensuring independent perspectives on major decisions[63]. Risk Management - The board is responsible for the risk management and internal control systems, which are reviewed annually by an independent service provider[112]. - The company emphasizes the importance of environmental, social, and governance (ESG) factors in its risk management practices[112]. - The independent auditor's report indicates significant uncertainty regarding the group's ability to continue as a going concern, which raises substantial doubts about its financial stability[192]. - The audit committee is responsible for overseeing the financial reporting process of the group[197]. Shareholder Communication and Dividends - The company has established a shareholder communication policy to ensure timely and balanced information dissemination to shareholders[118]. - The board did not recommend any final dividend for the year, consistent with the previous year[134]. - The company has adopted a dividend policy aimed at allowing shareholders to participate in profits while retaining sufficient reserves for future growth[135]. Legal and Compliance Issues - The group faces foreign exchange risks related to cash balances and receivables denominated in currencies other than its functional currency, with management ensuring net risk remains at acceptable levels[39]. - The group has various contingent liabilities arising from unresolved legal proceedings, but management believes these will not have a significant financial impact[41]. - The company has not disclosed any related party transactions that would require compliance with listing rules[154]. Board Composition and Diversity - The board consists of six directors and one senior management member, with a diversity ratio of 16.67% female representation[81]. - The company aims to gradually increase the proportion of female members on the board as suitable candidates are identified[81]. - The nomination committee was established to ensure a balanced board composition in terms of skills, experience, and diversity[94]. Employee and Operational Changes - The number of employees in the group decreased to 2,130 as of December 31, 2022, down from 2,557 on December 31, 2021[181]. - The company has implemented anti-corruption training for employees, with no reported violations related to bribery and corruption[117].