Financial Performance - Revenue for the six months ended December 31, 2020, was RMB 36,143,000, a decrease of 4.8% compared to RMB 37,956,000 for the same period in 2019[3] - Gross profit for the same period was RMB 11,388,000, down 12.0% from RMB 12,930,000 in 2019[3] - Operating loss decreased to RMB 9,942,000 from RMB 12,755,000 year-on-year, showing an improvement of 22.1%[3] - Net loss for the period was RMB 10,168,000, compared to RMB 13,378,000 in the previous year, reflecting a reduction of 24.8%[3] - Total comprehensive loss for the period was RMB 13,651,000, an increase from RMB 12,430,000 in 2019, indicating a rise of 9.8%[5] - The group reported a pre-tax loss of RMB 10,252,000 for the six months ended December 31, 2020, compared to a loss of RMB 13,136,000 in the same period of 2019, indicating an improvement in performance[49] Assets and Liabilities - Cash and cash equivalents at the end of the period were RMB 98,548,000, up from RMB 62,994,000 at the end of the previous year[10] - Non-current assets decreased to RMB 142,859,000 from RMB 151,796,000, a decline of 5.9%[7] - Current assets decreased to RMB 135,717,000 from RMB 145,804,000, a drop of 6.9%[7] - Total liabilities and equity as of December 31, 2020, amounted to RMB 244,250 thousand, compared to RMB 257,849 thousand at the beginning of the period[14] - The company had total lease liabilities of RMB 35.801 million as of December 31, 2020, compared to RMB 36.487 million as of June 30, 2020[62] Equity and Share Capital - Total equity attributable to owners of the company was RMB 242,417,000, down from RMB 257,173,000, a decrease of 5.7%[8] - As of December 31, 2020, the total equity attributable to owners was RMB 257,173 thousand, a decrease from RMB 333,149 thousand at the beginning of the period[14] - The total equity of the group, including non-controlling interests, was RMB 244 million as of December 31, 2020, down from RMB 258 million as of June 30, 2020[70] - The issued share capital of the company remained unchanged at 3,295,582,491 shares during the reporting period[78] Expenses - Total employee costs decreased to RMB 9,748,000 for the six months ended December 31, 2020, down 12.5% from RMB 11,143,000 in the same period of 2019[45] - The company reduced sales and distribution expenses from RMB 6 million to RMB 3 million during the reporting period[65] - The company reported a decrease in general and administrative expenses by 3%, totaling RMB 26 million[65] Financial Standards and Compliance - The company applied new and revised Hong Kong Financial Reporting Standards during the reporting period, which did not have a significant impact on the financial statements[20] - The company has not early adopted the new and revised Hong Kong Financial Reporting Standards that are effective from January 1, 2021, and onwards, including HKFRS 17 on insurance contracts[27] - The company has not reported any significant changes in its liabilities classification due to the adoption of the new standards[35] - The audit committee, consisting of independent non-executive directors, has reviewed the interim financial report[101] - The company has complied with the Corporate Governance Code, except for the combined role of Chairman and CEO held by the founder, which is under ongoing review[102] Market and Operational Insights - The company did not report any significant new product developments or market expansions in the current reporting period[19] - The company emphasized the importance of agricultural modernization and rural revitalization as outlined in the 2021 "No. 1 Document" by the Central Committee of the Communist Party of China[66] - The company is focusing on green development and improving self-innovation capabilities to enhance the quality and supply level of agricultural products[67] - The group maintained a current ratio of approximately 4 times as of December 31, 2020, consistent with the ratio as of June 30, 2020[70] - The group has no significant contingent liabilities as of December 31, 2020[77] Share Options and Director Interests - The company has a total of 61,300,000 stock options that remain unexercised as of the review period[91] - The exercise price for stock options granted in 2010 is HKD 6.430, with a total of 53,025,000 options granted to employees[91] - The company has not engaged in any arrangements that would benefit directors or their immediate family members through the acquisition of shares or debt securities[87] - The company has not reported any changes in the interests of directors or major executives in the company's shares or related securities during the review period[87] - The total number of stock options granted under the 2015 stock option plan remains at 248,580,000 as of December 31, 2020[95]

Financial Performance - The company recorded revenue of RMB 72 million for the fiscal year, a decrease of approximately 12% from RMB 82 million in the previous fiscal year[12]. - Gross profit was RMB 24 million, with a gross margin of 34%, down from RMB 28 million in the previous year[12]. - Operating loss for the fiscal year was RMB 14 million, compared to a loss of RMB 53 million in the previous year[12]. - Administrative expenses decreased by 9% to RMB 55 million due to reduced sales volume and revenue[12]. - Sales and distribution expenses fell from RMB 13 million to RMB 8 million as a result of the decline in sales volume and revenue[12]. - The company reported a gross profit margin of 35%, reflecting improved operational efficiency and cost management strategies[171]. - The company reported a reserve available for distribution to shareholders of RMB 643,435,000 as of June 30, 2020, down from RMB 652,703,000 in 2019[195]. - The company did not recommend the distribution of dividends for the fiscal year ending June 30, 2020, consistent with the previous year[194]. Corporate Governance - The company adhered to the Corporate Governance Code as per the Hong Kong Stock Exchange rules for the fiscal year ending June 30, 2020, with some deviations noted in the report[30]. - The board of directors held a total of six meetings during the fiscal year, with all members attending at least 83.33% of the meetings[38]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee relevant matters[35]. - The Remuneration Committee convened once during the fiscal year to review and propose remuneration policies for executive directors and senior management[43]. - All independent non-executive directors confirmed their independence according to the relevant rules, ensuring effective governance[34]. - The board consists of a balanced mix of executive and non-executive directors, including independent non-executive directors, to enhance independent judgment[32]. - The company is committed to continuous professional development for its directors, with all participating in training and seminars related to regulatory updates and industry management[40]. - The company’s governance practices will be reviewed regularly to ensure compliance with the latest regulations[30]. - The board is responsible for maintaining and improving overall shareholder interests and has established a robust internal control system[36]. - The company has established a formal risk assessment system to identify potential risks affecting key business processes annually[67]. - The internal audit department, led by the internal audit manager, is responsible for reviewing the company's major business operations and assisting in the continuous development of internal control policies[68]. - The board of directors is responsible for monitoring the effectiveness of the group's risk management and internal control systems, with annual reviews conducted[69]. Environmental, Social, and Governance (ESG) Initiatives - The group has established effective management policies and monitoring systems for environmental, social, and governance (ESG) matters during the reporting period[94]. - The group operates wholesale trade and distribution of agricultural products without any production bases or farming operations[89]. - The group emphasizes stakeholder engagement, maintaining close communication with key stakeholders to enhance sustainable development performance[91]. - The group has implemented environmental management systems to regulate greenhouse gas emissions and waste generated from operations in Hong Kong and mainland China[97]. - The group is committed to complying with relevant environmental laws and regulations, with no significant violations reported during the reporting period[97]. - The group has a dedicated ESG working group responsible for identifying and assessing ESG risks and evaluating the effectiveness of internal control mechanisms[85]. - The group aims to expand its disclosure scope as data collection systems mature and sustainable development efforts deepen[89]. - The group has developed a matrix to assess the importance of various ESG issues, highlighting key areas such as product quality and safety, waste management, and energy management[93]. - The company's sulfur oxides (SOX) emissions decreased from 0.82 kg in 2019 to 0.53 kg in 2020, representing a reduction of approximately 35.4%[99]. - Nitrogen oxides (NOX) emissions dropped significantly from 309.87 kg in 2019 to 142.05 kg in 2020, a decrease of about 54.4%[99]. - The total greenhouse gas emissions (Scope 1 and 2) reduced from 680.26 tons CO2 equivalent in 2019 to 509.23 tons CO2 equivalent in 2020, reflecting a decline of approximately 25.1%[102]. - The total amount of non-hazardous waste generated was 531.67 tons in 2020, down from 596.1 tons in 2019, indicating a reduction of approximately 10.8%[106]. - The company has implemented measures to reduce fuel consumption and carbon emissions through regular vehicle maintenance and compliance with regional emission policies[100]. - The company emphasizes energy-saving measures, increasing employee awareness of energy conservation through initiatives like posting energy-saving slogans[110]. - The company maintains a green work environment by regularly monitoring indoor air quality and installing air purification systems[114]. Employee and Labor Practices - The group employed 170 staff as of June 30, 2020, down from 190 in 2019[28]. - The company achieved a 100% labor contract signing rate with employees in mainland China[118]. - Employee turnover rate was 16% in Fuzhou and 17% in Hong Kong[125]. - The male employee turnover rate was 18%, while the female rate was 15%[125]. - The company has not recorded any work-related fatalities or serious injuries during the reporting period[126]. - The company emphasizes employee health and safety, adhering to relevant laws and regulations[126]. - Various training programs are implemented to enhance employee skills and support sustainable development[131]. - The training system includes pre-job training, on-the-job training, and professional training[134]. - The company organizes recreational activities to promote work-life balance among employees[129]. - The company has taken measures to ensure employee health during the COVID-19 pandemic, including increased cleaning and mask requirements[129]. - The company strictly prohibits the employment of child labor and forced labor in its operations in mainland China and Hong Kong, ensuring compliance with relevant laws and regulations[136]. Community Engagement and Philanthropy - The company actively participates in community investment and social responsibility initiatives, including scholarships and support for underprivileged students[156]. - The company donated RMB 200,000 to the Nanjing Agricultural University Education Development Foundation to support its development projects[157]. - The company encourages employees to engage in social welfare activities, enhancing their sense of social responsibility[158]. - The company has established a charity foundation to manage its philanthropic efforts and ensure compliance with relevant laws[157]. - The company plans to increase its support for public welfare through donations and organizing charitable events in the future[157]. Strategic Outlook and Future Plans - The company has set a future outlook with a revenue growth target of 10-15% for the next fiscal year, driven by new product launches and market expansion strategies[171]. - New product development includes the introduction of three innovative agricultural technologies aimed at improving crop yield and sustainability, expected to launch in Q2 2021[171]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share within the next two years[171]. - A strategic acquisition of a local agricultural firm is in progress, which is anticipated to enhance the company's supply chain efficiency and product offerings[171]. - The company has allocated HKD 100 million for research and development in the upcoming fiscal year, focusing on sustainable farming practices and technology integration[171]. - The management team emphasized the importance of digital transformation, with plans to invest in digital marketing and e-commerce platforms to enhance customer engagement[171].

Financial Performance - Revenue for the six months ended December 31, 2019, was RMB 37,956,000, a decrease of 11.5% compared to RMB 42,714,000 for the same period in 2018[5] - Gross profit for the same period was RMB 12,930,000, down 9.3% from RMB 14,259,000 year-on-year[5] - Operating loss for the six months was RMB 12,755,000, an improvement from a loss of RMB 14,512,000 in the previous year, indicating a reduction in losses[5] - The company reported a loss attributable to owners of the company of RMB 13,136,000, compared to a loss of RMB 15,889,000 in the same period last year[7] - Basic and diluted loss per share for the period was RMB (0.004), an improvement from RMB (0.005) in the previous year[7] - The total comprehensive loss for the period was RMB 11,904 thousand, which is a reduction from RMB 12,773 thousand in the prior period, reflecting a decrease of about 6.8%[16] - The group reported a pre-tax loss of RMB 13,136,000 for the six months ended December 31, 2019, compared to a loss of RMB 15,889,000 for the same period in 2018[60][61] - The company reported a loss attributable to owners of RMB 13 million, compared to a loss of RMB 16 million in the same period last year[74] Cash Flow and Assets - Net cash used in operating activities was RMB 55,027,000, significantly higher than RMB 1,441,000 used in the same period last year[12] - Total assets as of December 31, 2019, were RMB 262,284,000, a slight decrease from RMB 268,585,000 as of June 30, 2019[9] - Cash and cash equivalents at the end of the period were RMB 62,994,000, down from RMB 156,536,000 at the end of the previous year[12] - The company’s total equity decreased to RMB 256,874,000 from RMB 268,585,000 as of June 30, 2019[10] - As of December 31, 2019, the total equity attributable to the owners of the company was RMB 255,641 thousand, a decrease from RMB 305,585 thousand as of June 30, 2019, representing a decline of approximately 16.3%[16] - The company’s accumulated losses reached RMB 6,775,716 thousand as of December 31, 2019, compared to RMB 6,727,851 thousand at the end of the previous period, indicating an increase in accumulated losses of approximately 0.7%[16] - The group held cash and cash equivalents of RMB 80 million, down from RMB 133 million as of June 30, 2019[81] - The total equity of the group was RMB 257 million as of December 31, 2019, compared to RMB 269 million as of June 30, 2019[81] Employee and Operational Costs - Employee costs decreased to RMB 11,143,000 in 2019 from RMB 14,522,000 in 2018, reflecting a reduction of approximately 23%[56] - The company employed 175 staff members as of December 31, 2019, with a compensation policy based on performance and market conditions[90] Lease and Accounting Standards - The company applied new accounting standards, including HKFRS 16 on leases, which may impact future financial reporting and disclosures[20] - The company recognizes lease payments for short-term leases and low-value asset leases on a straight-line basis as an expense over the lease term[29] - The company will remeasure lease liabilities in the event of lease modifications, adjusting the corresponding right-of-use assets accordingly[36] - The group recognized lease liabilities of approximately RMB 8,443,000 and right-of-use assets of approximately RMB 39,123,000 as of July 1, 2019[42] Corporate Governance - The audit committee consists of independent non-executive directors, including Mr. Tan Zhenghao (Chairman), Mr. Feng Zhijian, and Mr. Chen Yibin, all of whom meet the listing rules requirements and possess appropriate professional qualifications in accounting or related financial management expertise[106] - The company has complied with the Corporate Governance Code as per the Hong Kong Stock Exchange listing rules, with the exception of the separation of roles between the Chairman and CEO, which is currently held by Mr. Guo Hao[108] - The company will continue to review its corporate governance policies and adopt practices that align with the overall interests of the company and its shareholders[110] Share Capital and Options - The company’s issued share capital remained unchanged at 3,295,582,491 shares during the financial period[88] - The company has a total of 12,000,000 stock options granted to directors, with an exercise price of HKD 0.187 for options granted from July 2016 to July 2020[94] - The total number of stock options granted under the 2010 stock option plan remains at 61,300,000 as of December 31, 2019[99] - The exercise price for the stock options granted under the 2015 stock option plan is HKD 0.187, with a total of 250,580,000 options available[102] Strategic Outlook - The company emphasizes green production and innovation to enhance agricultural product quality and supply levels[76] - The industry outlook highlights the importance of agriculture as a strategic sector, with government policies focusing on poverty alleviation and sustainable agricultural development[75] - The company plans to expand its new operational model to provinces including Fujian, Jiangsu, Gansu, Shaanxi, and Hainan in the second half of the year[79]

Financial Performance - The company recorded revenue of RMB 82 million for the fiscal year, a decrease of approximately 61% from RMB 213 million in the previous fiscal year[13] - The company achieved a gross profit of RMB 28 million, with a gross margin of 34%, reversing from a gross loss of RMB 48 million in the previous year[13] - Operating loss for the fiscal year was RMB 53 million, compared to RMB 743 million in the previous year[14] - The company reported a net loss attributable to shareholders of RMB 54 million, down from RMB 719 million in the previous year[14] - As of June 30, 2019, the group held cash and bank balances of RMB 133 million, a decrease from RMB 156 million in 2018[21] - The total equity of the group as of June 30, 2019, was RMB 269 million, down from RMB 318 million in 2018[21] - The current ratio as of June 30, 2019, was 4 times, compared to 5 times in 2018[21] - The company reported a reserve available for distribution to shareholders of RMB 652,703,000 as of June 30, 2019, down from RMB 664,026,000 in 2018, representing a decrease of approximately 1.9%[189] - The company did not recommend the distribution of dividends for the fiscal year ending June 30, 2019, consistent with the previous year[188] Corporate Governance - The board of directors consists of a balanced mix of executive and non-executive members, including independent non-executive directors, ensuring effective independent judgment[35] - During the fiscal year ending June 30, 2019, the board held five meetings, with all directors attending at least 100% of the meetings[41] - The remuneration committee, composed entirely of independent non-executive directors, held one meeting during the fiscal year and reviewed the group's adopted remuneration policy[46][47] - The company has established three committees: the audit committee, remuneration committee, and nomination committee, each managing specific areas of the company's affairs[38] - The chairman and CEO roles are currently held by the same individual, Mr. Guo, who possesses extensive agricultural knowledge and expertise[44] - All independent non-executive directors confirmed their independence in accordance with listing rules, ensuring they can effectively fulfill their responsibilities[37] - The company is committed to maintaining a high level of corporate governance and internal control systems[39] - The board is responsible for considering matters such as long-term goals and corporate strategies, as well as financial reporting and monitoring[39] - The company has a policy for continuous professional development for directors, ensuring they stay updated on regulatory requirements and industry trends[43] - The remuneration committee is tasked with proposing remuneration policies for executive directors and senior management, ensuring transparency and appropriateness[46] - The board of directors consists of eight members, all male, with a diversity review conducted once during the fiscal year ending June 30, 2019[50] - The Nomination Committee held one meeting to review the board's structure, composition, and diversity during the fiscal year[50] - The Audit Committee convened six times to review the audited financial statements for the fiscal year ending June 30, 2019[54] - The external auditor's fees for audit services amounted to HKD 1,200,000, while non-audit services (interim review) totaled HKD 350,000[59] - The company confirmed its responsibility for preparing consolidated financial statements that fairly reflect the group's financial position and performance[60] - The board is responsible for overseeing the risk management and internal control systems, with annual reviews conducted by the Audit Committee[63] - A formal risk assessment system has been established, with potential operational risks identified annually by senior management[64] - The internal audit department, led by the internal audit manager, reports directly to the Audit Committee and is responsible for reviewing the group's major business operations[65] - The company engaged an external consultant to review its risk management and internal control systems, with findings communicated to the Audit Committee[65] - The board has implemented measures to ensure assets are protected from misuse and that financial records comply with relevant accounting standards[65] - The board believes that the group's risk management and internal control systems are adequate and effective as of June 30, 2019[66] Environmental, Social, and Governance (ESG) - The company has established an environmental, social, and governance (ESG) working group to assess and report on ESG risks and performance[81] - The ESG report is prepared in accordance with the guidelines set by the Hong Kong Stock Exchange[82] - The report details the company's ESG activities, challenges, and measures taken during the fiscal year ending June 30, 2019[84] - The company emphasizes stakeholder engagement, maintaining communication with shareholders, customers, suppliers, employees, government, and NGOs[87] - The company has established effective management policies and monitoring systems for environmental, social, and governance (ESG) matters[92] - Total emissions of sulfur oxides (SOX) were 0.82 kg, nitrogen oxides (NOX) were 309.87 kg, and particulate matter (PM) were 29.61 kg during the reporting period[97] - The company actively implements energy-saving measures to reduce greenhouse gas emissions from transportation and electricity consumption[97] - The company has not reported any significant violations of local environmental laws regarding air and greenhouse gas emissions during the reporting period[95] - The company is committed to improving its ESG performance and creating greater value for the broader community[88] - The company regularly tracks the latest environmental protection laws and regulations to enhance its environmental protection measures[94] - The company aims to expand its disclosure scope as its data collection systems mature and sustainable development efforts deepen[85] - Total greenhouse gas emissions for the reporting period amounted to 680.26 tons of CO2 equivalent, with direct emissions (Scope 1) at 200.42 tons and indirect emissions (Scope 2) at 479.84 tons[100] - The density of greenhouse gas emissions was recorded at 0.09 tons of CO2 equivalent per square meter and 3.58 tons per employee[100] - The total amount of non-hazardous waste generated was 596.10 tons, including 1.10 tons of paper and 595.00 tons of general waste[105] - The company implemented measures to reduce paper usage, achieving a paper recycling amount of approximately 0.06 tons during the reporting period[104] - The company has established guidelines for the management and disposal of hazardous waste, although no hazardous waste was generated during the reporting period[101] - Energy-saving measures include the use of energy-efficient equipment and strict regulations on the use of high-power appliances in the office[109] - The company promotes a green office environment through the principles of reduction, reuse, recycling, and replacement[107] - The total area of the company's three office locations and business centers is 7,624 square meters, with a total of 190 full-time employees[103] - The company actively monitors resource usage and has policies in place for managing water, electricity, diesel, and gasoline consumption[107] - The company encourages employees to adopt energy-saving practices, such as turning off equipment when not in use and using energy-efficient lighting[108] Employee Relations and Social Responsibility - The group has a 100% labor contract signing rate with employees in mainland China, ensuring compliance with labor laws and regulations[122] - The group provides social insurance benefits, including pension, medical, unemployment, work injury, maternity insurance, and housing fund contributions for employees[122] - The group maintains a fair and competitive compensation system, regularly assessing and adjusting employee salaries based on macroeconomic factors and overall group performance[120] - The group emphasizes environmental sustainability and integrates environmental protection concepts into daily operations[116] - The group has implemented water-saving measures and promotes water conservation awareness among employees[113] - The group has not experienced any fatal or serious injury incidents during the reporting period, ensuring compliance with health and safety regulations[126] - Regular safety inspections and reviews are conducted to maintain employee health and safety, with a proactive approach to reporting incidents and risks[127] - The group provides annual health check-ups for employees and organizes various recreational activities to promote work-life balance[128] - Fire safety measures include regular drills and the installation of emergency equipment, with annual training sessions conducted by fire safety experts[129] - A comprehensive training system is established, including onboarding, management, and technical training to enhance employee skills and support sustainable development[130] - The group strictly prohibits the employment of child labor and forced labor, adhering to relevant labor laws and regulations[135] - The company encourages employees to participate in social welfare activities to enhance their sense of social responsibility[155] - The company has set up various reward and funding programs, such as scholarships, to support underprivileged students pursuing ecological agriculture[153] Supply Chain Management - A rigorous procurement system is in place to manage potential environmental and social risks within the supply chain[136] - Suppliers are evaluated based on product quality, price, supply capacity, and after-sales service, with annual reviews of qualified suppliers[137] - The group emphasizes the importance of maintaining competitive pricing and sufficient production capacity from suppliers[138] - The company emphasizes the importance of environmental, social, and governance (ESG) standards for suppliers, focusing on compliance, human rights, and environmental protection[139] - The procurement process adheres strictly to the "Bidding Law of the People's Republic of China," ensuring fairness and transparency without discrimination against suppliers[140] Product Quality and Customer Relations - The company maintains a comprehensive quality traceability system for agricultural products, allowing consumers to access planting and testing records via QR codes[142] - Customer complaints are managed through a standardized process, ensuring confidentiality and thorough investigation to improve service quality[144] - The company has not encountered any significant legal issues related to product and service quality during the reporting period[141] - There were no major incidents of violations regarding anti-bribery laws during the reporting period[150] - The company has established an anti-bribery function responsible for overseeing compliance and investigating any suspected bribery incidents[151] - The company prioritizes food safety as a core aspect of its operations, implementing rigorous safety testing in its provincial laboratories[142] - The company has a strong commitment to protecting customer privacy and adheres to strict data protection policies[145] - The company conducts limited advertising activities, thus minimizing associated advertising risks[147] Community Engagement and Charitable Activities - The company established the "Super Large Love Foundation" in February 2007 to enhance its management of charitable activities and regulate donation behaviors[154] - The company donated RMB 50,000 to the Fuzhou Gulou District Charity Association during the reporting period[154] - The company plans to increase support for charitable activities through donations and organizing public welfare events in the future[154] - The company engages with the community to understand local needs and ensure business activities consider community interests[160] Strategic Direction and Business Development - The company is committed to advancing its business restructuring and adjustment to seek new growth drivers for future profitability[10] - The company has focused on resource integration and technological innovation to address operational challenges and lay a foundation for future upgrades[8] - The company is focused on new business development and project management to drive future growth[163] - The group emphasizes sustainable development and has established a green ecological industrial chain named "Super Large Model," promoting the motto "Walk the green road, create ecological civilization"[182] - Major risks include natural disasters and adverse weather conditions, which pose significant threats to the group's agricultural and livestock operations[180] - Financial risk factors are detailed in the consolidated financial statements, specifically in note 34[181] - The group is committed to integrating modern ecological concepts and traditional agricultural techniques in its operations[182] - The group's core values focus on sustainable development and harmonious win-win outcomes in its business practices[182] - The group operates as an investment holding company, with its main subsidiaries engaged in various agricultural activities[176] - The group's annual report includes comprehensive financial statements and performance analysis, reflecting its operational effectiveness and strategic direction[177] Stock Options and Director Benefits - The company has a structured approach to stock options for directors, with various options granted at different exercise prices and terms[198] - The company has granted stock options to directors and key executives, with a total of 1,000,000 options available at an exercise price of HKD 0.187 each, valid until July 12, 2026[199] - No arrangements were made during the fiscal year for the benefit of directors or their immediate family members through the acquisition of shares or debt securities of the company or any other corporation[200]

Financial Performance - Total revenue for the six months ended December 31, 2018, was RMB 42,714,000, a decrease of 73.3% compared to RMB 159,530,000 for the same period in 2017[4] - Gross profit for the period was RMB 14,259,000, compared to a gross loss of RMB 51,301,000 in the previous year, indicating a significant improvement[4] - Operating loss narrowed to RMB 14,512,000 from RMB 657,342,000 year-on-year, reflecting a 97.8% reduction in losses[4] - The net loss attributable to owners of the company was RMB 15,889,000, compared to a loss of RMB 655,410,000 in the same period last year, marking a substantial decrease[5] - For the six months ended December 31, 2018, the company reported a total comprehensive loss of RMB 658,981,000, compared to a loss of RMB 655,485,000 for the same period in 2017, indicating a slight increase in losses of approximately 0.38%[14] - The company recognized a loss of RMB 655,410,000 during the period, which is a significant component of the total comprehensive loss reported[14] - The group reported a basic loss per share of RMB 15,889,000 for the six months ended December 31, 2018, compared to a loss of RMB 655,410,000 for the same period in 2017[49] Cash Flow and Assets - Cash and cash equivalents at the end of the period were RMB 156,536,000, slightly up from RMB 155,884,000 at the beginning of the period[12] - The company reported a net cash outflow from operating activities of RMB 1,441,000, an improvement from RMB 15,848,000 in the previous year[12] - Total assets decreased to RMB 481,322,000 from RMB 518,669,000 as of June 30, 2018, indicating a decline in asset value[9] - The company's equity attributable to owners was RMB 305,585,000, down from RMB 316,561,000 at the end of the previous period[9] - The company did not incur any financing activities during the period, maintaining a stable cash position[12] - The group had no outstanding bank loans or long-term debts as of December 31, 2018, resulting in a debt-to-equity ratio of zero[76] - The total bank financing available as of December 31, 2018, was RMB 16,950,000, with no amounts drawn down[60] Equity and Share Capital - The company's total equity attributable to owners decreased to RMB 305,585,000 as of December 31, 2018, down from RMB 376,111,000 at the end of 2017, reflecting a decline of about 18.7%[16] - The company’s share capital remained relatively stable at RMB 333,149,000 as of December 31, 2018, compared to RMB 332,926,000 at the end of 2017[16] - The total issued and fully paid ordinary shares remained at 3,295,582,000 as of December 31, 2018, with a total capital of RMB 333,149,000[61] - The company’s board members held a total of 645,092,644 shares, representing 19.57% of the issued share capital[87] - Kailey Investment Ltd. holds 643,064,644 shares, representing 19.51% of the company's issued share capital[91] Employee and Incentive Programs - The company employed 225 staff members as of December 31, 2018, with a compensation policy based on objective factors such as position, performance, qualifications, and market conditions[84] - The company has a structured employee incentive program, including stock purchase rights for eligible employees[84] - The company’s employee share option benefits recognized during the period amounted to RMB 1,797,000, indicating ongoing employee incentive programs[16] Accounting Standards and Financial Reporting - The company adopted HKFRS 15 for revenue recognition, which may impact future financial reporting and revenue recognition practices[22] - The company adopted the Hong Kong Financial Reporting Standard No. 9, which introduced classification and measurement of financial assets and liabilities, expected credit losses, and new hedge accounting provisions[28] - The expected credit loss model requires the company to recognize loss allowances for financial assets, including trade receivables and loans, based on changes in credit risk since initial recognition[31] - The company reported that the application of the new standards may result in changes to the accounting policies and comparability of financial information[30] - The company’s performance obligations are recognized as revenue when control of the goods or services is transferred to the customer[29] Governance and Compliance - The audit committee, consisting of independent non-executive directors, reviewed the interim financial report, ensuring compliance with relevant financial management expertise[100][101] - The company adhered to the Corporate Governance Code, with a noted deviation regarding the roles of the chairman and CEO being held by the same individual, which the board believes is beneficial for effective business development[102] - All directors confirmed compliance with the standards of the Securities Trading Code during the six months ending December 31, 2018[105] Strategic Initiatives - The group aims to develop a "customized agriculture" model to connect production and sales effectively[72] - The group plans to continue promoting green production and technological innovation to enhance agricultural product quality and supply levels[70] - The group signed non-binding strategic cooperation agreements with leading agricultural enterprises to promote the implementation of its new business model[73]