Financial Performance - For the six months ended June 30, 2023, the Group's overall revenue was approximately HK$122,351,000, a decrease of approximately 64.0% compared to HK$340,275,000 in 2022[15]. - The revenue from the fertiliser business was HK$19,316,000, down 80.2% from HK$97,778,000 in the previous year[10]. - The magnesium product business generated revenue of HK$103,004,000, a decrease of 56.9% from HK$238,936,000 in 2022[10]. - The metallurgical flux business reported revenue of HK$31,000, a significant drop of 99.1% from HK$3,561,000 in the prior year[10]. - The Group recorded a revenue of approximately HK$122,351,000 for the six months ended June 30, 2023, a decrease of approximately 64.0% compared to HK$340,275,000 in 2022[37]. - Revenue from the fertiliser business was approximately HK$19,316,000, representing a decrease of approximately 80.2% period-on-period, with sales volume dropping to 4,217 tonnes, down 82.5% from 24,061 tonnes in 2022[38]. - The magnesium product business generated revenue of approximately HK$103,004,000, a decrease of approximately 56.9% from HK$238,936,000 in 2022, with total sales falling to 4,745 tonnes from 5,603 tonnes[43]. - The metallurgical flux business generated revenue of HK$31,000, significantly lower than HK$3,561,000 in the prior period[142]. Loss and Profitability - The overall gross loss margin for the period was approximately 27.8%, compared to a gross profit margin of approximately 19.2% in 2022[15]. - The net loss after tax for the period was approximately HK$274,414,000, an improvement from a net loss of approximately HK$438,033,000 in 2022[15]. - Loss attributable to owners of the Company was HK$225,218,000, a decrease of 39.8% from HK$374,100,000 in the previous year[10]. - Basic loss per share improved to HK(4.92) cents from HK(8.17) cents in 2022, reflecting a 39.8% reduction in loss per share[10]. - The Group's after-tax loss for the period was approximately HK$274,414,000, a decrease of approximately 37.4% compared to HK$438,033,000 in 2022[55]. - Excluding non-operating items, the adjusted after-tax loss from operations was approximately HK$285,687,000, an increase of 45.0% from HK$197,074,000 in 2022, primarily due to decreased revenue and gross profits[57]. - The Group reported a loss before income tax of HK$274,729,000 for the six months ended June 30, 2023, compared to a loss of HK$428,053,000 for the same period in 2022[146]. - For the six months ended June 30, 2023, the loss attributable to ordinary equity holders was HK$225,218,000, a decrease of 39.8% compared to HK$374,100,000 for the same period in 2022[166]. Assets and Liabilities - Total assets as of June 30, 2023, were HK$4,007,924,000, down 8.1% from HK$4,361,021,000 in 2022[10]. - Net assets decreased by 32.1% to HK$803,533,000 from HK$1,182,813,000 in the previous year[10]. - The Group's total borrowings as of June 30, 2023, were approximately HK$1,938,804,000, a decrease of approximately 1.3% from HK$1,963,590,000 as of December 31, 2022[62]. - The gearing ratio increased to approximately 48.4% as of June 30, 2023, compared to approximately 45.0% as of December 31, 2022[62]. - The Group's current and non-current borrowings amounted to approximately HK$1,716,279,000 and HK$214,301,000, while bank and cash balances were only approximately HK$74,485,000[128]. - Total liabilities increased from HK$2,716,547,000 as of December 31, 2022, to HK$2,744,679,000 as of June 30, 2023, indicating a rise of approximately 1.04%[93]. - The company's reserves dropped from HK$1,287,154,000 as of December 31, 2022, to HK$994,472,000 as of June 30, 2023, reflecting a decrease of approximately 22.79%[96]. - Trade and bills receivables decreased from HK$55,606,000 as of December 31, 2022, to HK$33,560,000 as of June 30, 2023, a decline of about 39.66%[93]. Operational Challenges and Restructuring - The Group is completing a three-year offshore debt restructuring process, with expectations to finalize it within the fourth quarter of 2023, following approvals from relevant courts[21]. - The Group's management is actively negotiating with creditors to address the operational pressures faced by its subsidiaries in mainland China due to ongoing bank loan litigations[21]. - The Group's offshore debt restructuring has led to legal actions from banks, including litigation and asset seizures, with liabilities owed to banks and creditors totaling approximately HK$703,345,000[128]. - The Company is actively exploring debt restructuring options, including equity restructuring to raise cash from third-party investors[132]. - A proposed restructuring plan has been developed, which may involve refinancing and/or a compromise of the Group's debts and liabilities[132]. - The Hong Kong Court sanctioned the restructuring schemes on July 26, 2023, and the Singapore Court approved the pre-pack scheme on July 31, 2023[135]. - Material uncertainty regarding the Group's ability to continue as a going concern remains, pending court approvals for the restructuring plan[137]. Cost Management and Expenditures - Selling and marketing expenses decreased to approximately HK$2,241,000, down from HK$4,598,000 in 2022, primarily due to reduced sales volume[45]. - Administrative expenses were approximately HK$145,220,000, a decrease of approximately 39.5% from HK$240,182,000 in 2022[46]. - Financial expenses decreased to approximately HK$93,832,000, down 7.9% from HK$101,919,000 in 2022, due to the resolution of offshore debt-related interest[47]. - The Group's depreciation and amortization expenses for the six months ended June 30, 2023, were HK$127,577,000, down from HK$145,817,000 in 2022, indicating a decrease of 12.5%[162]. - The Group plans to implement further cost control measures to reduce overall operating costs[131]. Market Conditions and Future Outlook - The magnesium industry is facing a sluggish atmosphere, but the trend of "magnesium replacing aluminium" and the focus on "lightweight" and "energy-saving" applications are expected to improve market prospects[24]. - The current raw material prices have adjusted to levels prior to the significant increase in 2020, which may boost customer confidence in stocking up[25]. - The Group aims to enhance crop productivity and soil fertility as part of its long-term mission, hoping for increased customer purchasing enthusiasm to drive performance[25]. Corporate Governance and Reporting - The financial statements were approved for publication by the board on August 31, 2023, ensuring timely reporting to stakeholders[101]. - The unaudited condensed consolidated interim financial statements for the six months ended June 30, 2023, were approved for issue by the Board on August 31, 2023[106]. - The Company will make further announcements regarding any significant developments in a timely manner[123]. - The Company was incorporated in the Cayman Islands and its shares have been listed on the Main Board of the Stock Exchange since August 1, 2008[105].

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份內容而產生或因倚賴該等內容 而引致之任何損失承擔任何責任。 （臨時清盤中） （僅作重組用途） （於開曼群島註冊成立之有限公司） （股份代號：509） 截至2023年6月30日止六個月中期業績公告 世紀陽光集團控股有限公司（「本公司」）之董事會（「董事會」）宣佈本公司及其附屬公司 截至2023年6月30日止六個月期間的未經審核簡明綜合業績。本公告列載本公司2023年 中期報告全文，並符合香港聯合交易所有限公司（「聯交所」）證券上市規則內有關中期 業績初步公告須附載資料的要求。本公司2023年中期報告的印刷版本將於2023年9月8 日寄發予本公司股東，並可於其時在聯交所的網站www.hkexnews.hk及本公司的網站 www.centurysunshine.com.hk閱覽。 承董事會命 世紀陽光集團控股有限公司 （臨時清盤中） ...

Financial Performance - The company's market capitalization as of December 31, 2022, was HK$68,716,752[11] - The basic and diluted loss per share for 2022 was HK$21.98 cents[11] - The Group recorded an overall revenue of approximately HK$531,605,000 for the year ended December 31, 2022, representing a year-on-year decrease of approximately 60.1% compared to HK$1,331,858,000 in 2021[38] - The loss after tax for the year was approximately HK$1,055,367,000, a decrease of approximately 15.8% from a loss of approximately HK$1,254,102,000 in the previous year[41] - Revenue from the fertiliser business was approximately HK$141,858,000, reflecting a year-on-year decrease of approximately 84.3% from HK$904,013,000 in 2021[41] - Revenue from the magnesium product business was approximately HK$383,899,000, a year-on-year decrease of approximately 7.7% from HK$416,060,000 in 2021[49] - The average gross profit margin for the fertiliser business improved to 12.3% from 9.9% in 2021[41] - The average gross profit margin for the magnesium product business decreased to approximately 12.1% from 16.5% in 2021[49] Market Conditions - The average industry capacity utilization rate in 2022 was only around 38% due to severe market fluctuations and cost pressures[15] - The fertilizer market experienced significant volatility, with prices rising sharply in the first half of 2022 and then declining rapidly in the second half[14] - Geopolitical tensions and energy crises have significantly impacted fertiliser production and market dynamics, leading to cautious purchasing behavior among downstream users[18] - The overall trend in the fertiliser market has shifted to a new normal with no distinct off-season or peak season, complicating sales strategies[18] Production and Costs - The production cost of fertilizers was heavily influenced by raw material prices, which accounted for approximately 70% of the total cost[15] - The Group faced significant production cost increases due to the Russia-Ukraine War and strict COVID-19 measures, impacting overall production and sales[42] - The sales volume of fertilisers decreased by approximately 89.1% YoY to 35,572 tonnes from 326,887 tonnes in 2021[69] - The average selling price of fertilisers increased by 29.9% YoY to HK$3,594 per tonne from HK$2,766 per tonne in 2021[63] Debt Restructuring - The Group is actively working on a debt restructuring plan, with a formal creditors' meeting expected in Q2 2023[32] - The Group's offshore debt restructuring is in the final drafting stage, with an application to the High Court of Hong Kong expected in the second quarter of 2023[35] - The restructuring work has become complex due to a large number of creditors, including overseas investors, requiring necessary majorities and court approvals for implementation[125] - The total claims of the creditors under the proposed scheme amount to HKD 763,285,097, which has been approved by the High Court of Hong Kong[130] Operational Strategies - The Group adopted a brand licensing business model to expand revenue channels and mitigate risks from volatile market conditions[27] - The Group adopted brand licensing as a transitional strategy to maintain market share and generate additional revenue amid severe market fluctuations[41] - The management plans to closely monitor market conditions and adjust operational models to respond to price fluctuations and control costs[43] - The Group is taking measures to improve operational management, including restructuring internal capital and debt, and seeking potential investors for fundraising plans[101] Employee and Environmental Initiatives - The Group employs 674 staff as of December 31, 2022, down from approximately 1,150 in 2021[200] - The Group has implemented green initiatives including resource recycling and energy-saving measures in daily operations[198] - The Group is committed to enhancing employee training and broadening recruitment channels to retain key personnel[197] Risk Management - The Group's financial condition and business prospects may be affected by various risks, including market risks related to demand, product prices, and foreign exchange rates[180] - The Group does not currently hedge foreign exchange risks but periodically reviews its exposure to evaluate potential hedging[186] - The Group regularly assesses operational risks and implements measures to improve internal controls[193]

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佈的內容概不負責，對其準確性或完整性 亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何部份內容而產生或因倚賴該等內容而引致 的任何損失承擔任何責任。 （臨時清盤中） （僅作重組用途） （於開曼群島註冊成立之有限公司） （股份代號：509） 2022年年度業績公告 本公司董事會（「董事會」）欣然公佈本公司及其附屬公司截至2022年12月31日止十二個 月期間的經審核業績。本公佈載有本公司2022年年度報告全文，乃按香港聯合交易所 有限公司證券上市規則中有關初步年度業績公佈的相關規定而編製。本公司2022年年 度報告的印刷版本將於2023年4月28日寄發予本公司股東，並可於香港交易及結算所有 限公司網站http://www.hkex.com.hk及本公司網站http://www.centurysunshine.com.hk閱 覽。 承董事會命 世紀陽光集團控股有限公司 （臨時清盤中） （僅作重組用途） ...

Financial Performance - The Group recorded a revenue of approximately HK$332,932,000 for the six months ended June 30, 2022, representing a decrease of approximately 59.3% compared to HK$817,068,000 in 2021[15]. - Revenue from the fertiliser business was approximately HK$90,435,000, down from HK$628,274,000 in 2021, indicating a decline of approximately 85.6%[10]. - The loss attributable to owners of the Company was approximately HK$374,100,000, a significant increase of 180.1% compared to HK$133,578,000 in 2021[10]. - Basic loss per share increased to HK$0.0817 from HK$0.0292, reflecting a rise of 179.8%[10]. - The Group's after-tax loss was approximately HK$438,033,000, representing a period over period increase of approximately 162.6%[52]. - The total comprehensive expenses for the period amounted to HK$604,074,000, compared to HK$123,921,000 in 2021[94]. - The loss for the period was HK$438,033,000, compared to a loss of HK$166,836,000 in the previous year, indicating a significant increase in losses[94]. - The company reported a profit for the period of HK$374,100 for the six months ended June 30, 2022, compared to a profit of HK$133,578 in the same period of 2021[99]. Asset and Liability Management - Total assets decreased by 12.1% to HK$5,193,939,000 from HK$5,910,461,000 in 2021[10]. - Net assets declined by 24.4% to HK$1,861,928,000 from HK$2,464,019,000[10]. - Total borrowings decreased by 4.0% to HK$2,060,509,000 from HK$2,146,074,000[10]. - The Group's total borrowings decreased by approximately 4.0% compared to December 31, 2021, with a gearing ratio of approximately 39.7% as of June 30, 2022, up from approximately 36.3%[64]. - The borrowings as of 30 June 2022 were HK$2,060,509,000, down from HK$2,146,074,000 as of 31 December 2021[95]. - The carrying amount of borrowings repayable on demand due to breach of loan covenants was HK$1,952,239,000, down from HK$1,995,673,000[184]. Operational Adjustments - The Group adjusted its fertiliser production scale to manage liquidity and minimize market volatility risks due to rising raw material prices[13]. - The management plans to continue monitoring market dynamics and adjust business strategies accordingly to mitigate price volatility risks and drive performance recovery[13]. - The Group adopted a brand-licensing business model to mitigate risks from raw material price volatility and maintain market share[33]. - The Group is actively monitoring market dynamics to adjust business strategies in response to external factors affecting performance[33]. - The Group will adjust its business strategies in response to market conditions to minimize price risk and improve performance[59]. Revenue Breakdown - The Group's overall revenue from agricultural fertilisers and magnesium products accounted for 27.2% and 71.8% of total revenue, respectively[32]. - The average selling price of fertilisers increased by 43.8% to HK$3,759 per tonne, while magnesium products saw a 119.2% increase to HK$42,644 per tonne[29]. - The Group's magnesium product revenue increased by approximately 30.8% to HK$238,936,000 from HK$182,632,000 in 2021[20]. - Revenue from magnesium products business was approximately HK$238,936,000, representing a period over period increase of approximately 30.8%[37]. - The metallurgical flux products segment generated revenue of HK$3,561,000, a decline of 42.7% from HK$6,162,000 in the same period last year[141]. Cost and Expense Management - Administrative expenses increased to approximately HK$234,811,000, representing a period over period increase of approximately 135.8%[46]. - Finance costs were approximately HK$101,919,000, representing an increase of approximately 1.2% compared to the previous year[47]. - The cost of sales for the same period was HK$275,042,000, resulting in a gross profit of HK$57,890,000, down from HK$65,595,000 in 2021[91]. - Depreciation and amortization expenses increased significantly to HK$145,817,000 in 2022 from HK$117,441,000 in 2021, marking a rise of 24.14%[160]. - The Group plans to implement further cost control measures to reduce overall operating costs[132]. Employee and Operational Changes - The number of employees decreased to approximately 700 as of June 30, 2022, from approximately 1,150 as of December 31, 2021[75]. - The Group is actively seeking positive feedback from creditors to support its restructuring plan and will announce any substantial developments[60]. - The Group's ongoing business operations and capital expenditures will be funded by internal cash flows, available credit facilities, and equity/debt financing[65]. Legal and Restructuring Efforts - The Company is actively exploring options for debt restructuring, including equity restructuring to raise cash from third-party investors[133]. - The proposed restructuring plan will be implemented through schemes of arrangement with creditors, subject to court sanctions[131]. - The Group is seeking legal advice regarding the litigations and will take necessary actions to protect its interests[200]. - A PRC bank sought to enforce guarantees for loans amounting to RMB124.96 million (approximately $19 million) related to Shandong Hongri, a subsidiary of the Group[200]. Going Concern and Financial Viability - There is significant doubt regarding the Group's ability to continue as a going concern due to material uncertainties[137]. - The validity of the going concern basis depends on successful negotiations with creditors to renew or extend existing borrowings[136]. - Adjustments may need to be made to the financial statements if the Group cannot continue as a going concern, affecting asset valuations and classifications[137].

Financial Performance - The company's market capitalisation as of December 31, 2021, was HK$128,271,271[11]. - The basic and diluted loss per share for 2021 was HK24.48 cents[11]. - The Group's overall revenue for the year ended December 31, 2021, was approximately HK$1,331,858,000, a year-on-year decrease of approximately 38.1% from HK$2,151,811,000 in 2020[36]. - The loss after tax increased to approximately HK$1,254,102,000, representing a 27.4% increase compared to a loss of approximately HK$984,205,000 in the previous year[36]. - Revenue from the fertiliser business was approximately HK$904,013,000, down 34.4% from HK$1,378,985,000 in 2020, primarily due to the impact of COVID-19 and rising raw material prices[36]. - Revenue from the magnesium product business decreased by approximately 44.1% to HK$416,060,000 from HK$744,836,000 in 2020, with an average gross profit margin of 16.5%[37]. - The sales volume of the fertiliser business dropped by 47.0% to 326,887 tonnes from 616,661 tonnes in 2020[49]. - The average selling price of the fertiliser business increased by 23.7% to HK$2,766 per tonne from HK$2,236 per tonne in 2020[51]. - The overall gross profit margin for the Group decreased to 9.9% from 14.1% in 2020, reflecting a decline of 4.2 percentage points[53]. - The Group's after-tax loss for the year was approximately HK$1,254,102,000, an increase of about 27.4% compared to HK$984,205,000 in 2020[91]. - Adjusted after-tax loss from operations was approximately HK$243,929,000, compared to HK$130,741,000 in the previous year[92]. - The Group's total bank and cash balances were approximately HK$112,528,000, a decrease from HK$173,654,000 in 2020[127]. - The Group's total borrowings as of December 31, 2021, were approximately HK$2,146,074,000, reflecting an increase of about 0.2% compared to HK$2,140,789,000 in 2020[128]. - The Group's gearing ratio was approximately 36.3% in 2021, up from 30.9% in 2020[128]. - The auditors issued a disclaimer of opinion on the Group's consolidated financial statements due to material uncertainties regarding the going concern basis[129]. Market Conditions - In 2021, the price of Urea in Europe increased by over 270% year-on-year, while chemical fertiliser prices reached a historical high for the last ten years[21]. - The agricultural industry faced significant challenges due to the pandemic, energy crisis, and rising raw material prices, impacting fertiliser supply and demand[20]. - The "Dual Control of Total Energy Consumption and Energy Intensity" policy led to reduced output and production suspensions among fertiliser producers in certain regions[21]. - The market showed resistance to high fertiliser prices, with distributors and farmers adopting a wait-and-see approach[22]. - The overall market sentiment during the peak season was poor, putting pressure on fertiliser producers[22]. Strategic Initiatives - The company plans to accelerate product upgrades and technology innovation to enhance core competitiveness for sustainable development[15]. - The company aims to leverage brand recognition to develop the green industry[3]. - The company emphasizes the need for innovation and product differentiation to lead in the market segment[3]. - The Group launched new product lines in 2021, including seaweed fertilizers, humic acid fertilizers, water-soluble fertilizers, and liquid fertilizers, aimed at improving soil ecology and crop quality[29]. - The Group aims to enhance its core competitiveness through technology innovation and the development of cost-effective fertilizer products[30]. - The new fertilizers incorporate functional elements like alginic acid and humic acid to improve effectiveness and reduce water consumption[29]. - The Group's commitment to green ecological products aligns with national policies on reducing chemical fertilizer usage and promoting organic alternatives[29]. - The Group plans to leverage its brand influence accumulated over 30 years to create a brighter future in the fertilizer industry[30]. - The magnesium industry is expected to contribute to energy conservation and emission reduction, aligning with China's "Carbon Peak and Carbon Neutrality" goals[25]. - The Group will continue to innovate in technology, products, and marketing models to achieve sustainable development and benefit all stakeholders[32]. - The Group anticipates significant development opportunities in the agricultural materials market due to the rigid demand for fertilisers and policy support from the Chinese government[44]. - The Group aims to expand its fertiliser industry and lead the development of green ecological fertilisers, which are essential for improving soil conditions and enhancing crop yield[44]. Operational Challenges - The Group is undergoing offshore debt restructuring, which has constrained working capital and operational scale[36]. - The Group is considering possible debt restructuring due to significant operational challenges and liquidity issues exacerbated by the COVID-19 pandemic[96]. - The Company filed a winding up petition on July 2, 2020, to facilitate debt restructuring and appointed joint provisional liquidators for this purpose[101]. - The Grand Court of the Cayman Islands granted the appointment of joint provisional liquidators on July 14, 2020, with immediate effect[103]. - The joint provisional liquidators have held several creditors' committee meetings to discuss the restructuring scheme's development[111]. - The Group's production and operation will continue to be under pressure in the short and medium terms due to internal and external factors, including rising raw material prices and poor market performance[74]. - The Group's management believes that, assuming successful implementation of the creditor's scheme, it will have sufficient working capital to meet its financial obligations in the foreseeable future[138]. Human Resources - The Group employed approximately 1,150 employees as of December 31, 2021, down from approximately 1,670 in 2020[184]. - The Group is committed to optimizing its compensation structure to ensure competitiveness in the market[178]. - The Group is focused on enhancing recruitment channels and strengthening the talent pool of senior management[178]. - The Group's management is actively monitoring the impact of environmental policy changes on business development[179]. - The Group is enhancing systematic staff training to improve overall effectiveness and corporate culture dissemination[178]. Environmental and Regulatory Compliance - The Group has adopted green initiatives including resource recycling, energy saving measures, and water saving practices in daily operations[179]. - The Group's environmental policies are aligned with increasing regulatory requirements from the PRC government[179]. - The Group has complied with all relevant laws and regulations in mainland China and Hong Kong as of the report date[182]. - There were no significant labor disputes or changes in employee numbers affecting normal operations during the year[184]. Management and Governance - The Group's Production Director, Hu Jie, has over 20 years of experience in the fertilizer industry and joined the Group in 2007[200]. - The Group's Sales Director, Zhu Guocai, has over 20 years of experience in agricultural management and fertilizer marketing, joining the Group in 2000[198]. - The Group's Chief Financial Officer, Luk Sai Wai, has extensive experience in finance and management, having joined the Group in May 2010[197]. - Independent non-executive director Cheung Sound Poon has over 40 years of experience in accounting and auditing[194]. - Independent non-executive director Sheng Hong has over 20 years of experience in corporate management and investment[195]. - Independent non-executive director Shen Yi Min has been a qualified lawyer in securities laws in the PRC since 1996[196]. - The Group's Chairman Assistant, Lu Wenqing, has over 10 years of experience in human resources and administrative management[199]. - The Group's financial oversight is managed by Luk Sai Wai, who holds degrees from Hong Kong Baptist University and the University of Strathclyde[197].

Financial Performance - The Group recorded an overall revenue of approximately HK$817,068,000 for the six months ended June 30, 2021, representing a year-on-year decrease of approximately 26.2% from HK$1,106,575,000 in 2020[15]. - Revenue from the fertiliser business was approximately HK$628,274,000, down 12.9% compared to HK$721,446,000 in the previous year[15]. - The magnesium product business revenue decreased by 50.4%, amounting to approximately HK$182,632,000, down from HK$368,178,000 in 2020[15]. - The metallurgical flux business revenue fell by 63.6%, totaling approximately HK$6,162,000 compared to HK$16,951,000 in 2020[15]. - The overall gross profit margin decreased to 8.0% from 17.2% in the previous year[15]. - The loss attributable to owners of the Company was approximately HK$133,578,000, a significant increase from HK$6,708,000 in 2020, representing a 1,891.3% increase[13]. - Basic loss per share was HK$2.92, compared to HK$0.15 in the previous year, marking an increase of 1,846.7%[13]. - The Group's after-tax loss for the period was approximately HK$166,836,000, an increase of about 845% year-on-year compared to HK$17,658,000 in 2020[49]. - The total comprehensive income for the period was HK$(98,438,000), indicating a significant decline compared to the previous year[107]. Assets and Liabilities - Total assets as of June 30, 2021, were HK$6,811,014,000, a decrease of 1.8% from HK$6,934,475,000 at the end of 2020[13]. - Net assets decreased by 3.4% to HK$3,466,642,000 from HK$3,586,998,000 in the previous year[13]. - Current liabilities rose to HK$3,024,947,000, compared to HK$2,955,039,000 at the end of 2020, indicating a growing financial obligation[103]. - The Group's current liabilities exceeded its current assets by approximately HK$1,326,931,000[131]. - The Group's borrowings within current liabilities amounted to approximately HK$2,134,968,000, while cash and cash equivalents were only about HK$70,805,000[131]. - The carrying amount of borrowings repayable on demand due to breach of loan covenants was HK$1,920,865, up from HK$1,900,268[192]. Cash Flow and Financing - For the six months ended June 30, 2021, the net cash generated from operating activities was HK$58,007,000, compared to a net cash used of HK$245,962,000 in the same period of 2020[109]. - The net cash used in investing activities for the same period was HK$122,698,000, a decrease from HK$228,214,000 in 2020[109]. - The company's financing activities resulted in a net cash used of HK$24,046,000 for the period, down from HK$172,972,000 in 2020[109]. - The Group's total borrowings decreased by approximately 0.3% compared to December 31, 2020, with a gearing ratio of approximately 31.3% as of June 30, 2021, up from 30.9%[74]. Operational Challenges - The Group's overall business performance was significantly impacted by offshore debt restructuring, rising raw material prices, and disruptions in the supply chain caused by the pandemic[52]. - The Company defaulted on the redemption of SGD 101.75 million (approximately HK$584,981,000) of listed subordinated notes due on July 3, 2020[131]. - The Group is actively exploring options for debt restructuring, including a management-led restructuring under a court-supervised provisional liquidation regime in the Cayman Islands[137]. - The Group plans to implement further cost control measures on capital investments, production, and administrative operations to reduce overall operating costs[139]. Restructuring Efforts - The Company applied for the appointment of joint provisional liquidators to facilitate debt restructuring due to default on SGD101,750,000 of subordinated notes that matured on July 3, 2020[56]. - The Grand Court of the Cayman Islands granted the appointment of joint provisional liquidators on July 14, 2020, to oversee the restructuring process[59]. - The Group is undergoing a proposed restructuring plan to address its debts and liabilities[123]. - Proposed restructuring plans may involve equity restructuring to raise cash from third-party investors and potential disposal of non-core businesses and non-operating fixed assets[140]. Employee and Operational Metrics - The number of employees decreased to approximately 1,520 as of June 30, 2021, from approximately 1,670 as of December 31, 2020[85]. - The Group's serpentine mine produced 52,138 tonnes for the six months ended June 30, 2021, with no material change in resource estimates compared to December 31, 2020[95]. - The total sales volume of fertilisers was approximately 240,347 tonnes, representing a year-on-year decrease of approximately 26.9%[35]. - The total sales volume of magnesium products was approximately 9,353 tonnes, reflecting a year-on-year decrease of approximately 49.9%[41].

Financial Performance - The Group achieved revenue of approximately HK$2,151,811,000 for the year ended December 31, 2020[20]. - The loss after tax for the year was approximately HK$984,205,000[20]. - The overall gross profit margin recorded was 14.1%[20]. - The Group's total revenue for the year ended December 31, 2020, was HK$2,151,811,000, a decrease of approximately 50.1% compared to HK$4,314,420,000 in 2019[35]. - The gross profit margin for the year was 14.1%, down from 24.6% in 2019[35]. - The after-tax loss was HK$984,205,000, representing a decrease of approximately 329.8% compared to a profit of HK$428,254,000 in the previous year[35]. - Revenue from the agricultural fertiliser business was HK$1,378,985,000, a year-on-year decrease of approximately 49.6% due to the COVID-19 pandemic and flooding in Southern China[35]. - Revenue from the magnesium product business was HK$744,836,000, down approximately 50.8% from HK$1,515,291,000 in 2019[35]. - The total sales volume of fertilisers decreased to 616,661 tonnes, down from 1,091,589 tonnes in 2019, representing a decrease of 43.5%[43]. - The total sales volume of magnesium products decreased to 39,156 tonnes, down from 60,559 tonnes in 2019, representing a decrease of 35.3%[44]. - Other net gains or losses were approximately HK$60,309,000, a decrease of approximately 30.4% year-on-year[49]. - Administrative expenses were approximately HK$237,492,000, representing a decrease of approximately 19.5% year-on-year[55]. - Finance costs increased by approximately 16.8% year-on-year to HK$179,501,000[56]. - Income tax expense decreased by approximately 65.6% year-on-year to HK$56,222,000, mainly due to the decrease in revenue[57]. - The Group recognized a goodwill impairment of approximately HK$46,028,000 due to severe impacts from the global epidemic, with total impairments amounting to approximately HK$46,252,000 for the year[62]. - The total non-recurring items recognized during the year amounted to approximately HK$853,464,000, compared to HK$3,134,000 in 2019[64]. - The Group's liquidity and profitability significantly declined in the first half of 2020 due to reduced orders and extended receivables collection periods[70]. - As of December 31, 2020, the Group's total bank and cash balances were approximately HK$173,654,000, a decrease from HK$832,662,000 in 2019[91]. - The Group's total borrowings as of December 31, 2020, were approximately HK$2,140,789,000, a decrease of about 1.8% compared to HK$2,180,883,000 in 2019[92]. - The Group's net assets decreased by approximately 16.0% compared to 2019[92]. - The Group's gearing ratio was approximately 30.9% in 2020, compared to 28.6% in 2019[92]. Impact of COVID-19 and Natural Disasters - The COVID-19 pandemic severely impacted the agriculture sector, affecting farming and fertilization activities[23]. - More than 70 million people were affected by severe rainstorms and floods in Southern China during the third quarter of 2020[23]. - The Group's performance was adversely impacted due to the combined effects of the pandemic and natural disasters[23]. - The Group's overall business performance was adversely affected by the combined impact of the epidemic and floods during critical agricultural seasons[67]. - The Company has faced challenges due to the COVID-19 outbreak, leading to slower orders and longer receivable collection cycles, which materially reduced profitability and liquidity in the first half of 2020[81]. Strategic Initiatives and Future Plans - The Group plans to leverage brand recognition to develop the green industry[5]. - The company aims to enhance crop productivity and soil fertility as part of its mission[7]. - The Group's green ecological fertiliser segment is focused on developing and promoting new green fertilisers, leveraging patented technology and a strong customer base[29]. - The Group plans to continue innovating in technology, products, and marketing models in 2021 to achieve sustainable development[33]. - The Group aims to explore the agricultural market of green ecological fertilizers and pursue a high-quality ecosystem of green development in the post-epidemic era[96]. Management and Governance - The Group's management team includes individuals with diverse expertise in finance, corporate affairs, and production management, contributing to its strategic operations[152]. - The Group's Board consists of 7 members, including 3 executive directors, 1 non-executive director, and 3 independent non-executive directors, ensuring independent directors account for over one-third of the Board[171]. - The Group has complied with the Corporate Governance Code and regulatory requirements throughout 2020, with some deviations explained in the report[165]. - The Board is responsible for strategic leadership and overall supervision, including monitoring compliance with legal and regulatory requirements[169]. - The independent non-executive directors provide valuable business experience and ensure the Board acts in the interest of all shareholders[173]. - The Group's commitment to high standards of corporate governance aims to enhance management accountability and investor confidence[164]. - The Board has delegated authority to executive directors for daily management and implementation of strategies adopted by the Board[171]. - The Board met 4 times in 2020, with attendance records for individual Directors documented[195]. Employee and Operational Management - The Group's employee count decreased to approximately 1,670 as of December 31, 2020, down from approximately 2,350 in 2019[139]. - Employee remuneration is determined based on performance, work experience, and current market conditions, with benefits including medical insurance and a provident fund scheme[139]. - Operational risks are managed by functional departments, with regular assessments of key operational exposures and business development impacts[128]. - The Group has established credit management procedures to control credit risk exposure of customers since 2004[125]. Risk Management - The Group's management continuously monitors market risks, including product prices and exchange rates, to ensure timely responses[117]. - The Group is exposed to foreign exchange risks primarily related to Renminbi, HK$, Singapore dollars, US$, and Australian dollars, and does not currently hedge these risks[123]. - Investment risk is assessed through a framework that balances risk and return, with detailed analysis conducted before approving investments[127]. - The Group faces manpower risk due to rapid business development and competition for talent, prompting a review of its remuneration and training systems[133]. Debt and Restructuring - The Group is undergoing a possible debt restructuring process, having appointed joint provisional liquidators to oversee the restructuring efforts[71]. - The Company has established a creditors' committee to assist in formulating a debt restructuring plan, which requires majority agreement from creditors[78]. - The Company is implementing measures to restructure internal capital and debt, and is seeking potential investors for fundraising[80]. - The Company defaulted on the redemption of its subordinated notes with an aggregate principal amount of SGD101,750,000 that matured on July 3, 2020[81].

Financial Performance - Revenue for the six months ended June 30, 2020, was HK$1,106,575,000, a decrease of 47.7% compared to HK$2,115,046,000 in the same period of 2019[9] - The fertiliser business generated revenue of HK$721,446,000, down 46.9% from HK$1,357,513,000 year-on-year[9] - The magnesium product business saw revenue decline by 49.3%, from HK$726,229,000 to HK$368,178,000[9] - Loss attributable to owners of the Company was HK$6,708,000, a significant decrease from a profit of HK$214,784,000 in the previous year, representing a 103.1% decline[9] - Basic loss per share was HK$0.15 cents, compared to earnings of HK$4.69 cents per share in the same period last year, marking a 103.2% decrease[9] - The after-tax loss for the Group was HK$17,658,000, compared to a profit of HK$228,089,000 in 2019[24] - The Group reported a loss of approximately HK$17,658,000 for the period, a year-on-year increase of approximately 107.7%[57] - The Group's loss for the period was approximately HK$17,658,000, representing a year-on-year decrease of approximately 107.7%[60] - Total comprehensive expenses for the period amounted to HK$113,309,000, a decrease from total comprehensive income of HK$210,937,000 in the prior year[103] Assets and Liabilities - Total assets as of June 30, 2020, were HK$7,342,342,000, down 3.7% from HK$7,627,565,000 at the end of 2019[9] - Net assets decreased by 2.4% to HK$4,165,607,000 from HK$4,269,911,000[9] - Total borrowings reduced by 5.9% to HK$2,052,433,000 from HK$2,180,883,000[9] - The company's total equity decreased to HK$4,165,607,000 as of June 30, 2020, down from HK$4,269,911,000 at the end of 2019, reflecting a decline of about 2.44%[106] - The company’s net current liabilities increased to HK$401,578,000 as of June 30, 2020, compared to net current assets of HK$125,575,000 at the end of 2019[104] - Borrowings increased to HK$1,758,510,000 as of June 30, 2020, compared to HK$1,524,157,000 at the end of 2019, indicating an increase of about 15.36%[104] Market Conditions - The company faced significant challenges due to the COVID-19 pandemic, impacting global economic growth, with the IMF projecting a global GDP decline of 4.9%[14] - Revenue from the fertilizer business was HK$721,446,000, down approximately 46.9% from HK$1,357,513,000 in 2019, primarily due to weak market demand caused by the COVID-19 pandemic and severe flooding[22] - The impact of heavy rains and floods in June 2020 affected over 200,000 square kilometers of arable land, leading to direct economic losses of tens of billions yuan[21] Operational Adjustments - The Group plans to focus on green ecological fertilizers, which align with government policies promoting sustainable agriculture[27] - The Group aims to adapt its operational strategies in response to ongoing changes in the market due to the pandemic[28] - The government is expected to place greater emphasis on food security and the production of high-quality agricultural products in the post-pandemic era[28] Employee and Administrative Changes - The Group employed approximately 2,140 staff as of June 30, 2020, a decrease from approximately 2,350 staff as of December 31, 2019[81] - Administrative expenses increased by 16.2% year-on-year to approximately HK$123,142,000, primarily due to increased R&D expenses in the magnesium product business[52] Restructuring Efforts - The Company applied for the appointment of joint provisional liquidators for restructuring purposes on July 2, 2020, to facilitate a statutory moratorium[65] - The Grand Court of the Cayman Islands appointed joint provisional liquidators on July 14, 2020, to oversee the restructuring process[67] - The Company is actively exploring options for debt restructuring, including equity restructuring to raise cash from third-party investors[136] - The restructuring aims to maintain the Company's listing on the Stock Exchange while implementing a coordinated debt and liability restructuring[130] Financial Reporting and Compliance - The Group's financial reporting has been updated to comply with the latest amendments to HKFRSs, effective from January 1, 2020[140] - The application of the amendments to HKFRS Standards has had no material impact on the Group's financial positions and performance for the current and prior periods[145] - The Group's financial statements reflect adjustments for lease payments resulting from rent concessions, recognized in profit or loss during the period the event occurs[154]

Financial Performance - The company reported a market capitalization of HK$1,030,751,290 as of December 31, 2019[11]. - Earnings per share for 2019 were HK8.30 cents, both basic and diluted[11]. - The company did not declare any interim or final dividends for 2019[11]. - The company achieved a revenue of HK$4,314,420,000 for the year ended December 31, 2019, a decrease from HK$4,655,116,000 in 2018[26]. - Profit attributable to owners of the company was approximately HK$380,368,000, down from HK$474,230,000 in the previous year[26]. - Basic earnings per share for the year was HK8.30 cents, compared to HK10.35 cents in 2018[26]. - Gross profit for the year was HK$1,063,384,000, a decline from HK$1,142,259,000 in 2018[26]. - Total assets increased to HK$7,627,565,000 from HK$7,474,567,000 in 2018[26]. - Total liabilities decreased to HK$3,357,654,000 from HK$3,517,949,000 in 2018[26]. - The return on shareholders' equity was 9.9%, down from 13.4% in 2018[26]. - The company maintained a liquidity ratio of 1x, consistent with the previous year[26]. - The Group recorded an overall revenue of HK$4,314,420,000 for the year ended December 31, 2019, a decrease of approximately 7.3% compared to HK$4,655,116,000 in 2018[50]. - The profits after tax from continuing operations were HK$428,254,000, representing a decrease of approximately 20.9% from HK$541,522,000 in the previous year[50]. - Revenue from the fertiliser business was HK$2,735,195,000, down approximately 10.4% year-on-year, primarily due to reduced production volume from the Shandong Hongri production base[50]. - Revenue from the magnesium product business was HK$1,515,291,000, a decrease of approximately 1.5% year-on-year, affected by the devaluation of RMB against HKD[50]. - The average gross profit margin for the magnesium product business improved to approximately 27.5% from 26.6% in the previous year[50]. - The overall gross profit margin increased by approximately 0.9% to 27.5% in the magnesium product business, while the fertiliser business maintained a gross profit margin of approximately 22.5%[74]. Production and Operations - The sales network covers the entire country, enhancing market reach[2]. - The company is focused on differentiated products to lead market segments[2]. - In 2019, the Jiangsu production base successfully completed the technological upgrade of the "Hongri" type sulphur-based compound fertiliser production line, enhancing capacity and completing strategic integration[35]. - The Group emphasizes R&D and production synergy, enriching its product range to provide diverse, high-quality, efficient green fertilisers, leading the ecological fertiliser industry[35]. - Shandong Hongri initiated the "Relocation of Industries from City Urban Area to Industrial Parks" in 2019, transferring production to Jiangsu and Jiangxi to optimize industrial structure and meet sales targets[36]. - The Jiangsu company successfully completed the upgrade of a 200,000-ton production line for sulphur-based compound fertilisers, expanding production capacity[53]. - The production capacity was transferred from Shandong Hongri to Jiangsu and Jiangxi production bases to meet customer demand and production targets[51]. - The Group's fertilizer business sales volume decreased by 15.1% to 1,091,589 tonnes in 2019 from 1,285,612 tonnes in 2018[70]. - The magnesium product business sales volume slightly decreased by 1.5% to 60,559 tonnes in 2019 from 61,463 tonnes in 2018[70]. - The proportion of green ecological fertilizer usage is projected to increase from the current 10% to 30% in the future, providing significant market opportunities[64]. - The Group has launched several new green ecological fertilizer products, including alginic acid fertilizer and high tower sulphur-based compound fertilizer, enhancing product diversity[58]. Strategic Focus and Market Position - The company aims to lead the ecological fertilizer industry, focusing on enhancing crop productivity and soil fertility[4]. - The company is committed to developing the green industry by leveraging brand recognition[2]. - The fertiliser industry is entering a stage of "improving quality efficiency" due to favorable industrial policies from the Chinese government[30]. - The company is focusing on the development of ecological fertilisers to meet increasing market demand[30]. - The Group's strategic layout includes two production bases in Jiangsu and Jiangxi and three sales companies, covering national markets[59]. - The Group's magnesium product was recognized by Alunorf, the largest aluminum processing company globally, enhancing international business prospects[60]. Governance and Management - The company has a strong governance structure with various committees overseeing operations[5]. - The Group is committed to maintaining high standards of corporate governance and business integrity, believing it will enhance management accountability and investor confidence[176]. - Throughout 2019, the Group complied with the Corporate Governance Code, with some deviations explained in the report[178]. - The Board is responsible for strategic leadership and overall supervision of the Group, including financial performance monitoring and risk management policy planning[179]. - The Group's management team includes professionals with extensive backgrounds in finance, production, and sales, ensuring a well-rounded approach to business operations[168][170][171][173]. - The Board comprises 7 Directors, including 3 executive Directors, 1 non-executive Director, and 3 independent non-executive Directors, with independent Directors constituting more than one-third of the Board[187]. - The roles of Chairman and Chief Executive Officer are separated and held by Mr. Chi Wen Fu and Mr. Shum Sai Chit, respectively[200]. - The Board has received annual confirmations of independence from all independent non-executive Directors, ensuring accountability to all shareholders[190]. Risk Management - The Group is actively managing the impact of the COVID-19 pandemic, ensuring material supply and stable customer relationships while preparing for a swift business recovery post-pandemic[39]. - The Group's response to the COVID-19 pandemic included maintaining production stability and adjusting marketing strategies to minimize losses[65]. - The management continuously monitors market risks related to demand, product prices, foreign exchange rates, and interest rates to mitigate potential impacts on profitability[124]. - The Group is exposed to foreign exchange risks primarily involving Renminbi, HK$, Singapore dollars, US$, and Australian dollars, and does not currently hedge these risks[131]. - The Group monitors cash flows and maintains an adequate level of cash and cash equivalents to manage liquidity risk effectively[134]. Employee and Stakeholder Relations - The Group employed 2,351 employees as of December 31, 2019, down from approximately 3,440 in 2018, indicating a reduction of about 31.7%[149]. - Employee remuneration is based on performance, work experience, and current market conditions, with benefits including medical insurance and a defined provident fund scheme[149]. - The Group maintains good relationships with business partners, shareholders, investors, and banks, with no material disputes reported during the year[151]. - The Group has implemented an investor relations plan and conducts various stakeholder engagement activities, including annual meetings and seminars[150]. - The Group's senior management has effectively communicated and shared business updates with stakeholders when appropriate[151].