Financial Performance - The company reported revenue of approximately HKD 190,330,000 for the six months ended December 31, 2023, a decrease of 53.0% compared to HKD 405,080,000 for the same period in 2022[4]. - Gross profit for the same period was approximately HKD 16,795,000, with a gross margin of 8.8%, down from HKD 26,691,000 and a gross margin of 6.6% in the previous year, representing a decrease of 37.1%[4]. - The company recorded a loss attributable to owners of approximately HKD 6,734,000, an improvement from a loss of HKD 7,831,000 in the same period last year[5]. - Revenue from customers in China for the six months ended December 31, 2023, was approximately HKD 190,330,000, compared to HKD 387,331,000 for the same period in 2022, indicating a significant decrease[70]. - The total comprehensive loss for the six months ended December 31, 2023, was HKD 4,030,000, compared to a loss of HKD 5,308,000 for the same period in 2022, indicating an improvement of 24%[73][75]. Expenses and Costs - Administrative expenses decreased by 10.9% to approximately HKD 9,412,000 from HKD 10,566,000 in the prior period, primarily due to enhanced cost control measures[5]. - The total employee cost, including director remuneration, was approximately HKD 3,591,000, a decrease of 59.7% compared to HKD 8,920,000 for the same period in 2022[35]. - Central administrative expenses for the six months ended December 31, 2023, were HKD 2,101,000, down from HKD 3,501,000 in the same period of 2022, a reduction of 40%[73][75]. - The financial costs for the six months ended December 31, 2023, were HKD 8,829,000, compared to HKD 8,424,000 in the same period of 2022, showing an increase of 4.8%[73][75]. Assets and Liabilities - As of December 31, 2023, the company's current liabilities net value was approximately HKD 45,586,000, compared to HKD 29,657,000 as of June 30, 2023[6]. - The current ratio as of December 31, 2023, was approximately 0.79, slightly down from 0.81 as of June 30, 2023[6]. - The company's non-current assets increased to HKD 131,647 from HKD 111,059 as of June 30, 2023, reflecting a growth of 18.5%[53]. - The aging analysis of accounts payable shows a total of HKD 79,474,000 as of December 31, 2023, compared to HKD 63,945,000 as of June 30, 2023, indicating an increase in liabilities[87]. Strategic Plans and Investments - The company plans to continue strategic acquisitions to capture new opportunities in the Chinese market and strengthen its revenue and profit base[14]. - The company is actively seeking growth projects for acquisition or investment and is in discussions with multiple parties regarding these opportunities[14]. - The company has implemented measures to improve its financial situation, including financing from the ultimate holding company and ongoing discussions with potential investors[14]. - The group has no major investment or capital asset plans, aside from capital expenditures for operations, which will be funded by internal cash flow and borrowings[20]. Governance and Management - The company has adopted corporate governance practices in accordance with the listing rules, although it did not separate the roles of Chairman and CEO during the review period[40]. - The audit committee, consisting of two independent non-executive directors, reviewed the unaudited interim financial results for the six months ending December 31, 2023[47]. - The company is in the process of identifying suitable candidates to fill the vacancy left by the resignation of an independent non-executive director on August 9, 2023[41]. Shareholder Information - Major shareholders include Mr. Lin Qingqu, who holds 268,072,400 shares, representing approximately 156.33%[25]. - Onward Global Investments holds 12,863,500 shares, representing approximately 7.50%[25]. - Fair Concourse Limited holds 14,127,040 shares, representing approximately 8.24%[27]. Cash Flow and Financing - Cash generated from operating activities increased to HKD 24,665, compared to HKD 11,866 in 2022, marking a 107.5% increase[58]. - The company has secured loans of approximately HKD 4,641,000 and has access to additional financing of approximately HKD 65,359,000 from its ultimate holding company, Wei Jun Investment Fund[64]. - The board believes that the group will have sufficient cash resources to meet its operational funding and other financing needs for the next twelve months[65]. Employee and Director Remuneration - Total remuneration for directors and key management personnel for the six months ended December 31, 2023, was HKD 262,000, down from HKD 518,000 in the previous year[95]. - The group had a total of 130 employees as of December 31, 2023, up from 128 employees as of June 30, 2023[35].

Financial Performance - Revenue for the six months ended December 31, 2023, was HKD 190,330,000, a decrease of 53% compared to HKD 405,080,000 for the same period in 2022[2] - Gross profit for the same period was HKD 16,795,000, down 37% from HKD 26,691,000 year-on-year[2] - The net loss for the six months ended December 31, 2023, was HKD 4,030,000, an improvement from a net loss of HKD 5,308,000 in the previous year[3] - Basic and diluted loss per share was HKD 3.93, compared to HKD 4.57 for the same period in 2022[3] - The company reported a loss attributable to owners of approximately HKD 6,734,000 for the six months ended December 31, 2023, compared to a loss of HKD 7,831,000 for the same period in 2022, indicating a reduction in loss[37] - The company incurred a total comprehensive loss of HKD 4,030,000 for the six months ended December 31, 2023, compared to a loss of HKD 5,308,000 for the same period in 2022[22] Assets and Liabilities - Non-current assets increased to HKD 131,647,000 as of December 31, 2023, from HKD 111,059,000 as of June 30, 2023[7] - Current assets totaled HKD 133,902,000, slightly up from HKD 129,172,000 at the end of June 2023[7] - Current liabilities increased to HKD 179,488,000 from HKD 158,829,000, resulting in a negative net current liabilities of HKD 45,586,000[7] - As of December 31, 2023, the group's net current liabilities were approximately HKD 45,586,000, an increase from HKD 29,657,000 as of June 30, 2023[38] - The current ratio as of December 31, 2023, was approximately 0.79, slightly down from 0.81 as of June 30, 2023[38] - The asset-to-liability ratio (excluding cash and cash equivalents) was approximately 43.8% as of December 31, 2023, down from 53.3% as of June 30, 2023[38] Revenue Sources - Revenue from the manufacturing and sales of modified starch and other biochemical products was approximately HKD 190,330,000 for the six months ended December 31, 2023, a decrease of 53% compared to HKD 405,080,000 for the same period in 2022[17][22] - The company reported a segment profit of HKD 7,959,000 from modified starch and other biochemical products for the six months ended December 31, 2023, compared to HKD 8,067,000 for the same period in 2022[22] - The company continues to focus on the manufacturing and sales of modified starch and other biochemical products[11] Strategic Initiatives - The company plans to pursue strategic acquisitions to gain new opportunities in the Chinese market and strengthen its revenue and profit base[14] - The company is actively seeking growth projects for acquisition or investment and is in discussions with various parties regarding such opportunities[14] - The company has secured loans of approximately HKD 4,641,000 and has access to additional financing of about HKD 65,359,000 from its ultimate holding company, indicating efforts to ensure sufficient cash resources for operational needs[14][16] - The group continues to implement measures to improve its financial situation, including securing loans from the ultimate holding company and monitoring operational costs closely[39] Cost Management - Administrative expenses decreased by 10.9% to approximately HKD 9,412,000 for the six months ended December 31, 2023, down from HKD 10,566,000 in the same period of 2022[37] - The company’s cost control measures have contributed to a reduction in employee costs, impacting overall administrative expenses positively[37] - The company continues to implement measures to improve its working capital and cash flow, including close monitoring of general administrative expenses and operating costs[16] Taxation - The income tax expense for the six months ended December 31, 2023, was HKD 1,185,000, compared to HKD 1,529,000 for the same period in 2022[23] - The company has not incurred any tax liabilities in Hong Kong for the periods under review due to the absence of taxable profits[24] Dividends - The company did not recommend any interim dividend for the six months ended December 31, 2023, consistent with the previous year[27] - The company has decided not to declare an interim dividend for the six months ending December 31, 2023, consistent with the previous year[41] Compliance and Review - The board of directors has confirmed compliance with the standard code of conduct for securities transactions throughout the review period[44] - The audit committee has reviewed the unaudited interim financial results for the six months ending December 31, 2023[49]

Financial Performance - The company recorded revenue of approximately HKD 773.65 million for the year ended June 30, 2023, compared to HKD 1,007.19 million for the eighteen-month period ended June 30, 2022, representing a decline of about 23.2%[6] - Gross profit for the year was approximately HKD 50.41 million, with a gross margin of 6.52%, down from HKD 90.19 million and a gross margin of 8.95% in the previous period, indicating a decrease in profitability due to rising raw material costs[6] - The company reported a loss attributable to shareholders of approximately HKD 15.43 million for the year, compared to a loss of HKD 21.55 million in the previous period, reflecting an improvement despite the decline in gross profit[7] - The segment for modified starch and other biochemical products generated total revenue of approximately HKD 773.65 million, down from HKD 1,007.19 million in the previous period, with a segment profit of approximately HKD 18.07 million compared to HKD 49.28 million previously[8] Expenses and Liabilities - Administrative expenses decreased to approximately HKD 21.08 million from HKD 39.32 million in the previous period, primarily due to reduced employee costs as a result of stringent cost control measures[7] - As of June 30, 2023, the company's net current liabilities were approximately HKD 29.66 million, an increase from HKD 25.49 million a year earlier, with cash and cash equivalents of approximately HKD 6.31 million[10] - Total debt as of June 30, 2023, was approximately HKD 134.33 million, down from HKD 151.28 million, including borrowings of approximately HKD 59.29 million[11] - The company's asset-to-liability ratio (after deducting cash and cash equivalents) was approximately 53.0%, improved from 57.5% a year earlier[11] Corporate Governance - The board of directors has resolved not to recommend the payment of a final dividend for the year ended June 30, 2023, consistent with the previous year[15] - The company received annual independence confirmation from all independent non-executive directors, confirming their independence[35] - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with relevant guidelines[88] - The board is responsible for overseeing the company's business management and approving development strategies and annual budgets[91] Shareholder Information - As of June 30, 2023, Lin Qing Qu holds 268,072,400 shares, representing approximately 156.33% of the issued share capital[47] - The company will issue 268,000,000 shares upon full exercise of the zero-coupon convertible bonds held by Lin Qing Qu[49] - Major shareholders, apart from the disclosed directors' interests, have notified the company of their relevant interests in the issued share capital as of June 30, 2023[51] - The company has not declared any distributable reserves for shareholders as of June 30, 2023, remaining unchanged from the previous year[31] Environmental, Social, and Governance (ESG) Initiatives - The group aims to integrate environmental, social, and governance (ESG) considerations into daily operations as a key component of corporate strategy[138] - The company emphasizes environmental protection and sustainable development in its operations[78] - The company has established clear guidelines for controlling emissions and waste disposal at its Shandong factory, with ongoing inspections by the environmental department and government agencies[153] - The company has implemented various environmental protection measures, including the installation of water meters, LED lights, and solar systems to reduce consumption[154] Employee Information - The total number of employees as of June 30, 2023, is 128, a decrease of 18% compared to the previous year[190] - Employee turnover rate for the group is 21%, a decrease of 3 percentage points from 24%[190] - The group provides medical benefits and health insurance to all full-time employees, ensuring a safe and healthy work environment[193] - Employee training is emphasized as a key component of human resource development to enhance skills and improve work quality[199] Risk Management - The company emphasizes the importance of internal control systems and risk management functions[92] - The board conducts annual corporate risk assessments to identify current and potential risks, including ESG factors[139] - The company has not established an internal audit department, opting for external independent professionals to review risk management and internal control systems[126] - The group is closely monitoring potential physical and transition risks related to climate change, including acute and chronic risks[186][187]

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，對其準確性及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。 瑋 俊 生 物 科 技 有 限 公 司 Wai Chun Bio-Technology Limited （於開曼群島註冊成立之有限公司） （股份代號：660） 截至二零二三年六月三十日止年度之年度業績 董事會謹此公佈本集團截至二零二三年六月三十日止年度（「本年度」）的經審核 綜合財務業績連同截至二零二二年六月三十日止十八個月期間的比較數字如下： 綜合損益表 截至二零二三年六月三十日止年度 截至 截至 二零二三年 二零二二年 六月三十日止 六月三十日止 年度 十八個月期間 附註 千港元 千港元 收入 5 773,654 1,007,186 銷售成本 (723,241) (917,001) 毛利 50,413 90,185 其他收入與其他收益及虧損之淨額 7 354 (6,475) 銷售費用 (14,792) (22,678) 行政費用 (21,082) (39,316) 應收款項（減值虧損）減值虧損撥回，淨 ...

Financial Performance - The company recorded revenue of approximately HKD 405,080,000 for the six months ended December 31, 2022, representing a 40.7% increase compared to HKD 287,873,000 for the same period in 2021[3]. - Gross profit for the same period was approximately HKD 26,691,000, with a gross margin of 6.6%, down from HKD 28,744,000 and 10.0% respectively in the previous year, indicating a decrease of HKD 2,053,000 and a drop of 3.4% in gross margin[3]. - The company reported a loss attributable to owners of approximately HKD 7,831,000 for the six months ended December 31, 2022, compared to a loss of HKD 4,474,000 in the same period of 2021, mainly due to impairment losses on trade receivables[4]. - The net loss for the six months ended December 31, 2022, was HKD 5,308,000, compared to a profit of HKD 1,791,000 in the same period of 2021[50]. - Total comprehensive loss for the period was HKD 8,210,000, compared to a comprehensive income of HKD 2,888,000 in the same period of 2021[50]. - Basic and diluted loss per share for the period was HKD 0.47, compared to HKD 0.27 in the previous year[49]. Cash Flow and Financial Position - The company’s cash and cash equivalents amounted to approximately HKD 17,747,000 as of December 31, 2022, compared to HKD 7,520,000 as of June 30, 2022[5]. - The net cash generated from operating activities for the six months ended December 31, 2022, was HKD 11,866,000, compared to a cash outflow of HKD 4,662,000 in the same period of the previous year[57]. - The company incurred cash outflows of HKD 2,159,000 for the purchase of property, plant, and equipment during the same period[57]. - The net cash inflow from financing activities was HKD 677,000 for the six months ended December 31, 2022, compared to HKD 263,000 in the previous year[57]. - The company has drawn loans of approximately HKD 1,536,000 and has secured additional financing of approximately HKD 68,464,000 from its ultimate holding company[63]. - The company reported a net asset deficit of HKD 2,173,000 as of December 31, 2022, compared to a net asset of HKD 6,037,000 as of June 30, 2022[53]. Operational Efficiency - Administrative expenses decreased by 24.3% to approximately HKD 10,566,000 from HKD 13,960,000 in the previous period, primarily due to enhanced cost control measures[4]. - The company’s operating cash flow and general administrative expenses will continue to be closely monitored to enhance operational efficiency[14]. - The company has implemented measures to improve its working capital and cash flow, including close monitoring of general administrative expenses and operating costs[66]. Shareholder Information - As of December 31, 2022, Mr. Lin Qingqu holds 1,368,004,000 shares, representing approximately 81.39% of the company[26]. - Onward Global Investments holds 128,635,000 shares, representing approximately 7.90% of the company[26]. - Fair Concourse Limited holds 141,270,400 shares, representing approximately 8.41% of the company[28]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, with a noted deviation regarding the separation of the roles of Chairman and CEO[42]. - The company has established an audit committee to oversee financial reporting and internal controls, consisting of three independent non-executive directors[46]. Future Plans and Strategic Initiatives - The company is actively seeking strategic acquisitions to capture new opportunities in the Chinese market and strengthen its revenue and profit base[14]. - The company plans to implement measures to improve its financial situation, including financing from the ultimate holding company and ongoing discussions with potential investors[14]. - The group plans to pursue strategic acquisitions to gain new opportunities in the Chinese market and strengthen its revenue and profit base[65]. Employee and Management Information - The total number of share options available for grant under the share option scheme as of December 31, 2022, is 69,963,946 shares[35]. - The total employee cost, including director remuneration, is approximately HKD 8,920,000, compared to HKD 8,046,000 for the same period last year[37]. - The total remuneration for directors and key management members for the six months ended December 31, 2022, was HKD 518,000, a decrease of 67.6% compared to HKD 1,598,000 for the same period in 2021[92]. - The company had a total of 142 employees as of December 31, 2022, down from 156 employees as of June 30, 2022[37]. Taxation and Compliance - The income tax expense for the six months ended December 31, 2022, was HKD 1,529,000, compared to HKD 1,072,000 for the same period in 2021[76]. - The company has not made any provisions for Hong Kong profits tax due to no taxable profits during the periods[77]. - The company has adopted all new and revised Hong Kong Financial Reporting Standards effective from July 1, 2022, with no significant impact on its financial performance and position expected[67].

Financial Performance - The company reported total revenue of HKD 1,007,186,000 for the eighteen months ending June 30, 2022, compared to HKD 567,553,000 for the previous year, representing an increase of approximately 77.4%[5] - Gross profit for the same period was HKD 86,479,000, up from HKD 48,930,000, indicating a growth of about 76.7%[5] - The company incurred a net loss of HKD 5,282,000 for the eighteen months, compared to a profit of HKD 995,000 in the previous year, reflecting a significant decline in profitability[7] - The basic loss per share was HKD 1.40, compared to a loss of HKD 0.49 in the previous year, indicating a worsening financial position[5] - The company reported a total comprehensive loss of HKD 7,034,000 for the period, compared to a comprehensive income of HKD 4,202,000 in the previous year[7] - The company experienced a foreign exchange loss of HKD 1,752,000 from overseas operations, contrasting with a gain of HKD 3,207,000 in the previous year[7] - The company reported a loss attributable to shareholders of approximately HKD 23,531,000 for the period[17] - The group reported a loss of HKD 23,531,000 for the period, compared to a loss of HKD 8,149,000 in the previous year, indicating a year-over-year increase in losses of approximately 188%[30] Expenses and Liabilities - Administrative expenses increased to HKD 39,274,000 from HKD 25,519,000, showing a rise of approximately 54.0%[5] - Sales expenses also rose to HKD 22,679,000 from HKD 12,179,000, marking an increase of about 86.1%[5] - Current liabilities increased from HKD 149,989,000 to HKD 180,354,000, an increase of 20.3%[10] - Non-current liabilities, including convertible bonds, increased from HKD 51,301,000 to HKD 65,650,000, a rise of 27.9%[10] - The total equity position improved from HKD (12,969,000) to HKD 3,243,000, indicating a positive shift in the company's financial health[10] - The company recorded a current tax expense of HKD 3,795,000 for the period, compared to HKD 616,000 in the previous year, indicating a substantial increase of about 516%[28] Assets and Cash Flow - Current assets increased significantly from HKD 90,247,000 to HKD 151,931,000, representing a growth of 68.3% year-over-year[9] - Trade receivables rose from HKD 13,769,000 to HKD 38,386,000, marking an increase of 179.5%[9] - Inventory increased from HKD 52,291,000 to HKD 69,748,000, reflecting a growth of 33.5%[9] - The net current liabilities position improved from HKD (59,742,000) to HKD (28,423,000) indicating a reduction in liabilities[9] - The company's cash and cash equivalents were approximately HKD 7.52 million, an increase from HKD 5.45 million as of December 31, 2020[45] - Total liabilities amounted to approximately HKD 139.57 million, including borrowings of approximately HKD 71.81 million[47] Strategic Initiatives and Future Outlook - The company has not provided specific guidance for future performance or strategic initiatives in the announcement[2] - The company is actively seeking acquisition opportunities to gain new business in the Chinese market and strengthen its revenue and profit base[18] - The company plans to implement measures to improve its working capital and cash flow, including close monitoring of general administrative expenses and operating costs[19] - The company is in discussions with potential investors to raise sufficient funds for its operations[19] - The company has acknowledged the potential need to adjust asset values and liabilities if it cannot continue operations under the going concern basis[18] Audit and Compliance - The financial results were unaudited and subject to further review, indicating potential adjustments in the final audited figures[3] - The company is currently undergoing an audit process for its annual performance, expected to be completed by mid-October 2022[65] - The audited annual results for 2022 will be published by October 31, 2022, and the annual report will be sent to shareholders by mid-November 2022[65] - The financial data for the eighteen-month consolidated annual performance ending June 30, 2022, has not been audited and lacks auditor consent[68] Employee and Operational Information - As of June 30, 2022, the group had a total of 125 employees, primarily working in China[55] - The company is implementing measures to improve its financial situation, including monitoring general administrative expenses and operating costs closely[54] - There were no significant acquisitions or disposals of subsidiaries during the eighteen months ended June 30, 2022[57]

Financial Performance - The company reported revenue of approximately HKD 495,377,000 for the twelve months ending December 31, 2021, a decrease of 12.7% compared to HKD 567,553,000 for the same period in 2020[7]. - Gross profit for the same period was approximately HKD 37,577,000, with a gross margin of 7.6%, down from HKD 48,930,000 and 8.6% in the previous year, respectively[7]. - The company recorded a loss attributable to owners of approximately HKD 17,027,000, compared to a loss of HKD 8,149,000 in the prior year, primarily due to decreased revenue and increased interest expenses on convertible bonds[8]. - Revenue for the year ended December 31, 2021, was HKD 495,377,000, a decrease of 12.7% from HKD 567,553,000 in 2020[37]. - Gross profit for 2021 was HKD 37,577,000, down 23.2% from HKD 48,930,000 in the previous year[37]. - The company reported a loss of HKD 12,647,000 for the year, compared to a profit of HKD 995,000 in 2020, marking a significant decline[39]. - Basic and diluted loss per share for 2021 was HKD 1.02, compared to HKD 0.49 in 2020[37]. - Total comprehensive loss for the year was HKD 10,809,000, compared to a comprehensive income of HKD 4,202,000 in 2020[39]. - The company recorded a loss attributable to owners of approximately HKD 17,027,000 for the year ended December 31, 2021, highlighting ongoing financial challenges[51]. - The total comprehensive loss for the year ended December 31, 2021, was HKD 12,647 compared to a profit of HKD 995 in 2020[61][63]. Assets and Liabilities - The company's current liabilities net worth was approximately HKD 62,513,000 as of December 31, 2021, compared to HKD 59,742,000 a year earlier[9]. - Non-current assets decreased to HKD 92,423,000 in 2021 from HKD 98,074,000 in 2020[41]. - Current assets increased to HKD 93,917,000 in 2021 from HKD 90,247,000 in 2020, driven by an increase in trade receivables[41]. - Current liabilities and net debt as of December 31, 2021, were approximately HKD 62,513,000 and HKD 23,778,000, respectively, indicating significant financial obligations[51]. - Total liabilities as of December 31, 2021, were HKD 210,118, an increase from HKD 201,290 in 2020[65][68]. - The company’s equity attributable to owners decreased to HKD (53,578,000) in 2021 from HKD (37,488,000) in 2020[42]. - Trade receivables increased to HKD 23,761,000 as of December 31, 2021, compared to HKD 16,796,000 in 2020, reflecting a growth of 41.4%[94]. - Total borrowings increased from HKD 73,762,000 in 2020 to HKD 85,016,000 in 2021, with shareholder loans rising from HKD 6,732,000 to HKD 16,420,000[100]. Cash Flow - The company reported a net cash outflow from operating activities of HKD (9,400,000) for the year ended December 31, 2021, compared to HKD (413,000) in 2020, indicating a significant decline in operational cash flow[46]. - The company incurred a net cash outflow from investing activities of HKD (284,000) in 2021, a decrease from HKD (12,523,000) in the previous year, reflecting reduced investment expenditures[46]. - Financing activities generated a net cash inflow of HKD 5,596,000 in 2021, down from HKD 11,534,000 in 2020, primarily due to changes in borrowing and repayment activities[46]. - The company’s cash and cash equivalents decreased to HKD 4,644,000 at year-end 2021 from HKD 5,446,000 at the beginning of the year, reflecting liquidity pressures[46]. Strategic Plans - The company plans to continue strategic acquisitions to capture new opportunities in the Chinese market and strengthen its revenue and profit base[13]. - The company is actively seeking growth projects for acquisition or investment, indicating a proactive approach to market expansion[54]. - The company plans to continue focusing on its core business segments and may explore opportunities for market expansion in the future[74]. - The company plans to continue exploring market expansion opportunities and new product development strategies in the upcoming fiscal year[99]. Corporate Governance - The board has resolved not to declare a second interim dividend for the twelve months ending December 31, 2021[14]. - The group did not declare any interim dividend for the twelve months ended December 31, 2021, consistent with the previous year[85]. - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by Lin Qingqu[31]. Shareholder Information - As of December 31, 2021, the major shareholders include Lin Qingqu, who holds 28,004,000 shares (1.67%) and has control over 811,502,432 shares (48.28%) through related companies[20]. - The company has a total of 811,502,432 shares held by China Success Limited, which is wholly owned by Wei Jun Investment Fund[21]. - The company has a total of 141,270,400 shares held by Fair Concourse Limited, owned by Mai Xiuqun[29]. - The total number of issued ordinary shares decreased from 16,590,685,376 in 2020 to 1,680,764,537 in 2021 due to a share consolidation[108]. - The total number of convertible preferred shares decreased from 816,000,000 to 81,600,000 after the share consolidation, with issued preferred shares reduced from 216,960,000 to 21,696,000[114]. Risk Management - The company faces various financial risks, including market risk, credit risk, and liquidity risk, which are detailed in the annual financial statements[123]. - The company has not made significant changes to its risk management policies since December 31, 2020, maintaining its approach to financial risk management[124].

Financial Performance - For the year ended December 31, 2019, the group recorded revenue of approximately HKD 579,231,000, an increase of about 20.5% compared to HKD 480,852,000 in 2018[9] - The gross profit for the year was approximately HKD 49,027,000, with a gross profit margin of about 8.5%, representing an increase of approximately 215.9% and 5.3% respectively from 2018[9] - The operating loss attributable to the owners of the company was approximately HKD 3,159,000, a significant reduction from HKD 53,617,000 in 2018[9] - The modified starch and other biochemical products segment achieved revenue of approximately HKD 558,343,000, up about 26.0% from HKD 442,961,000 in 2018, with segment profit increasing by 568.9% to HKD 26,925,000[10] - The general trading business recorded revenue of approximately HKD 20,888,000, down from HKD 37,891,000 in 2018, with segment profit decreasing to HKD 101,000 from HKD 184,000[11] - The group reported a net loss of approximately HKD 3,159,000 for the year ended December 31, 2019[198] Financial Position - As of December 31, 2019, the group's total borrowings were approximately HKD 99,267,000, compared to HKD 96,151,000 in 2018[13] - The group's current liabilities net value was approximately HKD 71,807,000, a decrease from HKD 84,060,000 in 2018[13] - As of December 31, 2019, the group's net current liabilities and net liabilities were approximately HKD 71,807,000 and HKD 36,512,000, respectively[198] - The capital deficit attributable to the company's owners was approximately HKD 50,316,000[198] - Trade receivables, net of provisions, amounted to approximately HKD 27,615,000 after deducting provisions of HKD 6,976,000 as of December 31, 2019[199] Dividend Policy - The board has decided not to recommend the payment of a final dividend for the year ended December 31, 2019[18] - The company reported no final dividend for the year ended December 31, 2019, consistent with the previous year[31] - The company has no distributable reserves available for shareholders as of December 31, 2019, the same as the previous year[35] Corporate Governance - The board of directors presented the audited consolidated financial statements for the year ended December 31, 2019[28] - The board's report includes discussions on potential risks and uncertainties faced by the group[29] - The company has established policies for financial risk management, which are detailed in the financial statements[29] - The board of directors consists of a balanced mix of executive and independent non-executive directors, ensuring effective oversight of the company's operations[90] - The company has adopted the corporate governance code as per the listing rules and has been compliant throughout the year[88] Risk Management - The board is responsible for risk management and internal control systems, which are continuously reviewed for effectiveness[124] - The company has established a risk management and internal control system, which is reviewed annually for effectiveness[131] - The company has adopted a risk management policy that includes identifying significant risks and assessing their impact[125] Environmental Responsibility - The company continues to implement its environmental policies and strategies to develop sustainable business practices, focusing on resource conservation and environmental protection[144] - During the reporting period, the company did not violate any environmental laws or regulations and did not receive any warnings or fines from government agencies regarding emissions or wastewater[147] - The company has a clear policy for controlling emissions, wastewater, and handling hazardous and non-hazardous waste, with regular inspections and monitoring by its environmental department and government[145] - The factory's harmful air emissions were effectively controlled, with no negative comments or violations reported during the reporting period[151] Employee Management - The company has a total of 180 employees, primarily based in China, and offers competitive salaries along with discretionary bonuses and stock options[77] - The workforce increased to 180 employees, up from 160 in the previous year, with 12 in headquarters and 168 in factories[170] - Training expenses for employees amounted to HKD 71,000, a significant increase from HKD 19,000 in the previous year[172] - The company has maintained compliance with all employment laws in China and Hong Kong, with no reported labor disputes during the reporting period[168] Shareholder Information - As of December 31, 2019, Mr. Lin Qingqu holds 8,442,624,320 shares, representing approximately 50.88% of the company's equity[49] - Wai Chun Investment Fund, controlled by Mr. Lin Qingqu, holds 8,115,024,320 shares, accounting for about 48.91% of the company's equity[53] - Onward Global Investments Limited, owned by Wan Yuzhen, holds 1,344,960,000 shares, which is approximately 8.10% of the company's equity[53] - Spring Garden Investments Limited, owned by Zhong Liyan, holds 1,286,400,000 shares, representing about 7.91% of the company's equity[53] - Fair Concourse Limited, owned by Mai Xiuqun, holds 1,412,704,000 shares, accounting for approximately 8.51% of the company's equity[55] Compliance and Audit - The auditor has issued an unqualified opinion regarding the company's related party transactions, confirming they were conducted in the normal course of business[69] - The total audit service fee paid to the external auditor was HKD 500,000 for the year ended December 31, 2019[119] - The company has not faced any legal actions related to labor safety or employment laws during the reporting period[175] Community Engagement - The company provided over 140 job positions for low-skilled urban and rural workers, supporting community volunteer services[186] - The company emphasizes stakeholder engagement through various communication channels, including annual performance evaluations and investor briefings[141]