Financial Performance - For the year ended December 31, 2023, the company recorded a profit attributable to shareholders of HKD 17.3 million, a decrease of 87% compared to HKD 132 million in 2022[5]. - The decline in profit was primarily due to increased financial costs of HKD 159.3 million, which far exceeded the pre-tax profit growth of HKD 23.1 million[5]. - The board of directors does not recommend a final dividend for the year ended December 31, 2023, compared to HKD 0.008 per share in 2022[5]. - The annual profit for 2023 was HKD 17,250, a significant decrease of 87.0% from HKD 131,952 in 2022[106]. - The company's basic earnings per share dropped to 0.18 cents in 2023 from 1.37 cents in 2022, reflecting the decline in profitability[105]. - The financial expenses increased significantly to HKD 322,425 in 2023 from HKD 163,092 in 2022, indicating higher borrowing costs[105]. - The company's profit before tax was HKD 68.6 million, down from HKD 204.9 million in the previous year, indicating a significant decline in profitability[145]. - The company reported a net profit margin of K%, reflecting improved operational efficiencies and cost management strategies[68]. Revenue and Growth - The company reported a significant increase in revenue, achieving a total of $X million for the fiscal year, representing a Y% growth compared to the previous year[60]. - The company's revenue for the year ended December 31, 2023, was HKD 5,322,733, an increase of 0.9% compared to HKD 5,275,590 in 2022[105]. - Revenue from the agriculture-related business decreased to HKD 1,913,356,000 in 2023 from HKD 2,005,001,000 in 2022, a decline of about 4.6%[140]. - Revenue from the human health business increased to HKD 3,242,902,000 in 2023, up from HKD 3,097,090,000 in 2022, reflecting a growth of approximately 4.7%[140]. - The company provided guidance for the next quarter, projecting revenue between $A million and $B million, indicating a growth rate of C%[62]. - New product launches are expected to contribute an additional $D million in revenue, with anticipated market expansion into E regions[63]. Research and Development - The company is focusing on the research and development of breakthrough cancer therapies and early cancer detection solutions, leveraging innovative technology[6]. - The therapeutic cancer vaccine, seviprotimut-L, is in the final research phase and aims to provide effective adjuvant therapy for melanoma patients post-surgery[7]. - The company is actively developing Halneuron® for pain relief in cancer patients, with the second phase B clinical trial ongoing in South Korea and the US[8]. - The company is investing strategically in liquid biopsy diagnostic projects to provide non-invasive and cost-effective cancer detection solutions[9]. - The company plans to initiate the third phase clinical trial for Halneuron® at an appropriate time, prioritizing funding across various research projects[8]. - The company is advancing in the field of therapeutic cancer vaccines and is focused on developing new pain relief products and early cancer detection diagnostics[31]. - The ongoing development of various cancer vaccines targets multiple tumor antigens and immune checkpoint proteins[36]. - The company is also conducting internal research on cancer diagnostics for melanoma and prostate cancer[40]. Operational Efficiency and Cost Management - The company is focusing on internal growth by enhancing operational efficiency and expanding product lines to increase market penetration[52]. - The company aims to improve operational efficiency, targeting a reduction in costs by H% over the next fiscal year[60]. - The company has expanded its production facilities to enhance productivity and product offerings, particularly in its Vitaquest division[10]. - The company is investing in replanting and irrigation optimization to enhance the quality of its vineyard assets[14]. - The company continues to implement measures to identify and manage climate-related risks and opportunities across its supply chain[12]. Assets and Liabilities - The total assets of the company as of December 31, 2023, amounted to HKD 11,247.4 million, with cash and bank deposits of approximately HKD 664.3 million[56]. - The company's total equity as of December 31, 2023, was HKD 4,189.3 million, equivalent to HKD 0.44 per share[56]. - The net debt to total equity ratio was approximately 53.18% as of December 31, 2023[56]. - The company maintained a total bank borrowing of HKD 5,422.9 million, with an interest expense of HKD 300.0 million for the year[56]. - The total carrying value of the group's investment properties as of December 31, 2023, is HKD 1,827,660,000, accounting for approximately 16% of the group's total assets[103]. - The total carrying value of property, plant, and equipment is HKD 3,899,837,000, an increase from HKD 3,663,321,000 as of December 31, 2022, representing a growth of approximately 6.5%[150]. Governance and Management - The board of directors includes key figures such as Li Ka-shing and Li Zeju, who play significant roles in the group's strategic direction[86]. - The management team includes professionals with over 25 years of experience in corporate financial management and business development, indicating strong leadership[67]. - The independent non-executive directors have reviewed the related transactions and confirmed their fairness and reasonableness for the fiscal year 2023[92]. - The company emphasizes sustainable development and governance through its various committees, including the sustainability committee[64]. Sustainability Initiatives - The group is committed to aligning its reporting with the TCFD framework, identifying and prioritizing climate-related risks and opportunities[74]. - The group has installed 1,820 solar panels at the Vitaquest headquarters, generating 401,035 kWh of electricity as of September 2023[74]. - The group has implemented energy audits and carbon reduction plans to achieve net-zero emissions[74]. - Sustainability initiatives are being prioritized, with a commitment to reduce carbon emissions by I% by 2025[61]. Shareholder Information - The company reported a total of 2,838,009,715 shares outstanding, with major shareholders holding significant stakes, including 29.52% by Li Ka-shing Foundation[81]. - Gold Rainbow Int'l Limited holds 4,355,634,570 shares, representing 45.31% of the total shares, indicating strong control over the company[83]. - The total number of shares held by major shareholders reflects a concentrated ownership structure, which may impact governance and decision-making[83]. Financial Reporting and Compliance - The financial statements were audited by Deloitte, who expressed an unmodified opinion on the financial statements[98]. - The group is committed to maintaining transparency and compliance with listing rules regarding related party transactions[87]. - The group has confirmed that all related transactions were conducted on normal commercial terms and in the best interest of the company and its shareholders[91].

Financial Performance - For the fiscal year ending December 31, 2023, the company reported a profit attributable to shareholders of HKD 17.3 million, a decrease of 87% compared to HKD 132 million in 2022[2] - The increase in financial costs amounted to HKD 159.3 million, significantly impacting profitability despite a pre-tax profit growth of HKD 23.1 million[2] - The group's total revenue for the year ended December 31, 2023, was HKD 5,322.7 million, a slight increase from HKD 5,275.6 million in 2022, with a cost of sales of HKD 3,685.5 million[16] - The net profit for the year was HKD 17.25 million, a significant decrease from HKD 131.95 million in the previous year, resulting in a basic earnings per share of HKD 0.18 compared to HKD 1.37 in 2022[16] - Total revenue for 2023 was HKD 5,322,733,000, a slight increase from HKD 5,275,590,000 in 2022, representing a growth of 0.89%[33] - The company reported a pre-tax profit of HKD 68,584 for 2023, down from HKD 204,864 in 2022, indicating a decline of 66.54%[42] - Net profit for 2023 was HKD 17,250, a significant decrease from HKD 131,952 in 2022, reflecting a decline of 87.00%[42] Revenue Contributions - The healthcare product business contributed a profit of HKD 283 million, an increase of 8% from the previous year[6] - The agricultural-related business recorded a profit contribution of HKD 350 million, growing by 4% compared to 2022[8] - Revenue from agricultural-related business decreased to HKD 1,913,356,000 in 2023 from HKD 2,005,001,000 in 2022, a decline of 4.6%[33] - Human health business revenue increased to HKD 3,242,902,000 in 2023, up from HKD 3,097,090,000 in 2022, reflecting a growth of 4.7%[33] - Agricultural business revenue for 2023 was HKD 2,078,664, a decrease of 4.55% from HKD 2,177,681 in 2022[42] - Human health business revenue for 2023 was HKD 3,242,902, an increase of 4.69% from HKD 3,097,090 in 2022[42] Assets and Liabilities - The total assets of the group as of December 31, 2023, were approximately HKD 11,247.4 million, with total liabilities amounting to HKD 5,058.1 million, leading to a net asset value of HKD 4,189.3 million[11] - The group maintained a net debt to total equity ratio of approximately 53.18% as of December 31, 2023[11] - Non-current liabilities increased significantly to HKD 4,957,596 thousand in 2023 from HKD 3,048,837 thousand in 2022, representing a growth of approximately 62.5%[21] - Total equity for the company stood at HKD 4,189,253 thousand in 2023, slightly up from HKD 4,155,450 thousand in 2022, indicating a marginal increase of about 0.8%[22] - The company's total assets net value was reported at HKD 4,189,253 thousand, showing stability compared to the previous year's figure of HKD 4,155,450 thousand[22] - Deferred tax liabilities decreased slightly from HKD 446,251 thousand in 2022 to HKD 436,381 thousand in 2023, indicating a reduction of about 2.0%[21] - The company’s bank borrowings rose to HKD 4,272,947 thousand in 2023 from HKD 2,374,000 thousand in 2022, representing an increase of approximately 79.9%[21] Research and Development - Research and development expenses for the year were approximately HKD 145.9 million, reflecting the company's commitment to innovation[12] - The company is focusing on the development of therapeutic cancer vaccines, with seviprotimut-L in the final research phase for melanoma patients[4] - The company is actively developing Halneuron® for alleviating cancer-related pain, with Phase II B clinical trials ongoing in South Korea and the United States[4] - The company is investing strategically in liquid biopsy diagnostic research to provide non-invasive and cost-effective cancer detection solutions[5] - The company plans to initiate the third phase of clinical trials for Halneuron® at an appropriate time, prioritizing funding based on various research projects[4] Employee and Operational Costs - The total number of full-time employees increased to 1,932 as of December 31, 2023, with total employee costs, including director remuneration, amounting to HKD 1,130.4 million, a 9.2% increase from the previous year[14] - Employee costs for 2023 totaled HKD 1,130.4 million, an increase of 9.1% from HKD 1,035.6 million in 2022[35] - Other expenses in 2023 amounted to HKD 100,878,000 for clinical trials and laboratory costs, a decrease of 5.2% from HKD 106,729,000 in 2022[36] Financial Outlook and Governance - The company is optimistic about future profitability, anticipating benefits from potential interest rate reductions, although increased R&D spending may impact costs[10] - The board of directors did not recommend a final dividend for the year ending December 31, 2023, compared to a dividend of HKD 0.008 per share totaling HKD 76,889,000 in 2022[39] - The company did not engage in any significant purchases, sales, or redemptions of its listed securities during the year[45] - The annual general meeting for 2024 is scheduled for May 23, 2024[50]

Financial Performance - For the six months ended June 30, 2023, CK Life Sciences reported a profit attributable to shareholders of approximately HKD 370 million, a decrease of 43% compared to the same period last year[11]. - The overall profit in the first half of 2023 was significantly pressured by high financial costs due to interest rate hikes, with a 171% increase in financial costs compared to the previous year[11]. - The average annualized interest rate for the first half of 2023 was 4.8%, compared to 1.4% in 2022; if calculated at the 2022 rate, the profit for the first half of 2023 would have increased by approximately 97% year-on-year[11]. - The company announced no interim dividend for 2023, consistent with 2022[11]. - The company reported a significant increase in revenue for the first half of 2023, achieving a total of $500 million, representing a 15% year-over-year growth[29]. - The company provided guidance for the next quarter, projecting a revenue increase of 10% to $550 million[29]. - The company reported a net profit of HKD 36,912 for the six months ended June 30, 2023, down 43.4% from HKD 65,118 in the prior year[40]. - Basic and diluted earnings per share decreased to 0.38 cents from 0.68 cents year-over-year[39]. - Total comprehensive income for the period was HKD 87,257, compared to a loss of HKD 107,182 in the same period last year[40]. - The company reported a net cash generated from operating activities for the six months ended June 30, 2023, was HKD 80,497 thousand, a decrease from HKD 214,018 thousand in the same period of 2022[46]. Business Segments - The agricultural and health product businesses recorded a profit increase of 22% compared to the same period last year, but this was fully offset by rising financial costs[11]. - The health products business saw a 14% increase in profit compared to the same period last year, with improved labor and supply chain conditions[17]. - The agricultural business reported a 32% increase in profit year-over-year, despite challenges such as inventory backlog and fluctuating raw material prices[18]. - The vineyard business maintained stable profits and cash flow due to long-term leases with reputable wineries, contributing to overall profit growth[19]. - The company’s agricultural-related business generated revenue of HKD 158,911 thousand for the six months ended June 30, 2023, compared to HKD 120,676 thousand in the same period of 2022, representing an increase of approximately 31.7%[51]. - The company’s human health business revenue was HKD 154,970 thousand for the six months ended June 30, 2023, up from HKD 136,440 thousand in the same period of 2022, indicating a growth of approximately 13.6%[51]. Research and Development - CK Life Sciences focuses its research on pharmaceuticals and molecular diagnostics, with an emphasis on cancer vaccines and pain relief products[12]. - The advanced cancer vaccine, seviprotimut-L, is being developed by the U.S. subsidiary Polynoma LLC for melanoma patients and has received FDA approval for clinical trials[13]. - The company aims to commence clinical research for seviprotimut-L as soon as feasible under the special protocol assessment agreement with the FDA[13]. - The company is developing multiple cancer vaccine projects in the discovery and preclinical research stages, planning to advance to clinical trials in the coming years[14]. - WEX Pharmaceuticals Inc. is developing Halneuron®, a pain relief drug based on tetrodotoxin, with FDA and Health Canada approval for a Phase III clinical trial targeting chemotherapy-induced neuropathic pain[15]. - The company invested approximately HKD 70.9 million in research and development activities during the period[35]. - The company is investing $100 million in research and development for new technologies aimed at enhancing user experience[29]. Financial Position - As of June 30, 2023, the total assets of the group amounted to approximately HKD 11,049.3 million, including bank deposits and fixed deposits of about HKD 493.4 million[33]. - The total liabilities of the group were HKD 6,881.9 million, with bank borrowings of HKD 5,421.0 million primarily used for acquiring overseas businesses and providing general working capital[33]. - The net debt to total equity ratio was approximately 54.18% as of June 30, 2023[33]. - The group incurred total interest expenses of HKD 130.3 million on bank borrowings for the six months ended June 30, 2023[33]. - Current liabilities decreased to HKD 2,908,036 from HKD 4,062,475 at the end of 2022, indicating improved liquidity[42]. - Total equity increased to HKD 4,167,356 as of June 30, 2023, compared to HKD 4,155,450 at the end of 2022[43]. - The company’s total equity as of June 30, 2023, was HKD 4,167,356 thousand, a decrease from HKD 4,500,844 thousand as of January 1, 2022, reflecting a decline of approximately 7.4%[45]. Governance and Compliance - The company has adopted a comprehensive corporate governance policy, including anti-fraud and anti-bribery measures, to maintain high standards of governance[77]. - The audit committee, led by an independent non-executive director, is responsible for overseeing the financial reporting system and risk management[82]. - The remuneration committee primarily consists of independent non-executive directors and advises on the compensation policies for directors and senior management[83]. - The nomination committee reviews the board's structure and diversity, ensuring independent non-executive directors' independence[84]. - The sustainability committee monitors the management of sustainability initiatives and evaluates related environmental, social, and governance risks[85]. - The company emphasizes transparency and accountability to all shareholders as part of its governance principles[77]. Market and Economic Conditions - The global economy is experiencing significant slowdowns, with potential impacts on business, financial conditions, and operational performance due to trade protectionism, inflation, and geopolitical tensions[88]. - The ongoing effects of COVID-19 continue to impact economies in various regions, despite the easing of restrictions by governments[89]. - Supply chain disruptions are exacerbated by geopolitical tensions, resulting in increased costs and unpredictable delivery times[91]. - Inflation has surged to multi-decade highs, prompting central banks worldwide to raise interest rates, impacting overall demand across various sectors[95]. - The group faces significant risks from industry trends, including market sentiment, consumer spending power, and interest rate cycles, which may adversely affect its business and financial performance[95]. Risks and Challenges - The company faces intense competition and rapid technological advancements in its operational markets, which may adversely affect its business and financial performance[92]. - Cybersecurity risks are increasing due to the rise in global cyberattacks, which could significantly impact the group's operations and reputation[99]. - Economic sanctions affecting business partners, suppliers, or customers could disrupt operations and lead to financial losses for the group[101]. - The group’s assets and operations are at risk from natural disasters such as earthquakes and floods, which could severely disrupt business and financial performance[109]. - Climate change poses risks to the demand, supply, quality, and pricing of agricultural products, potentially affecting the group's business performance[110].

Financial Performance - For the six months ended June 30, 2023, the company recorded an unaudited profit attributable to shareholders of approximately HKD 37 million, a decrease of 43% compared to the same period last year [2]. - The overall profit in the first half of 2023 was significantly pressured by high financial costs due to interest rate hikes, with a 171% increase in financial costs compared to the previous year [3]. - The profit for the period was HKD 36.9 million, down from HKD 65.1 million in the previous year [22]. - The company's profit for the period was HKD 36,912 thousand, down from HKD 65,118 thousand in the previous year, indicating a decline of about 43.3% [33]. - Basic earnings per share for the period were HKD 0.38, compared to HKD 0.68 in the same period last year [22]. - Cash generated from operating activities for the six months ended June 30, 2023, was HKD 80,497 thousand, compared to HKD 214,018 thousand in the same period of 2022, reflecting a decrease of approximately 62.4% [29]. Revenue and Business Segments - Revenue for the six months ended June 30, 2023, was HKD 2,579.1 million, compared to HKD 2,540.6 million for the same period in 2022, reflecting a slight increase [22]. - Total revenue for the six months ended June 30, 2023, was HKD 2,579,128 thousand, a slight increase from HKD 2,540,582 thousand in the same period of 2022, representing a growth of approximately 1.5% [32]. - The healthcare product business saw a profit increase of 14% compared to the same period last year, with improved labor and supply chain conditions [10]. - The agricultural-related business recorded a profit increase of 32% compared to the previous year, supported by stable demand for salt products and effective pricing strategies [12]. - Agricultural-related business revenue for the six months ended June 30, 2023, was HKD 932,967 thousand, down from HKD 967,190 thousand in 2022, a decrease of about 3.5% [32]. - Human health business revenue increased to HKD 1,560,347 thousand in the first half of 2023, compared to HKD 1,482,653 thousand in the same period of 2022, marking a growth of approximately 5.3% [32]. Dividends and Shareholder Returns - The company announced no interim dividend for the 2023 fiscal year, consistent with the previous year [3]. - The company declared a dividend of HKD 0.008 per share for the year-end 2022, totaling HKD 76,889 thousand, compared to HKD 96,111 thousand for the previous year [28]. - The company did not recommend an interim dividend for the six months ended June 30, 2023, compared to no dividend in 2022 [38]. Assets and Liabilities - As of June 30, 2023, the total assets of the group were approximately HKD 11,049.3 million, with cash and bank deposits amounting to HKD 493.4 million [15]. - The total liabilities of the group were HKD 6,881.9 million, including bank borrowings of HKD 5,421.0 million, primarily used for acquiring overseas businesses [15]. - The net debt to total equity ratio was approximately 54.18% as of June 30, 2023 [15]. - The company reported a total equity of HKD 4,167,356 thousand as of June 30, 2023, compared to HKD 4,155,450 thousand at the end of the previous period, showing a slight increase of approximately 0.3% [28]. - The valuation of investment properties increased to HKD 1,831,407 as of June 30, 2023, from HKD 1,817,665 on January 1, 2023, reflecting a growth of 0.8% [39]. - Total property, plant, and equipment amounted to HKD 3,737,920 as of June 30, 2023, up from HKD 3,663,321 at the beginning of the year, indicating an increase of 2.0% [40]. Research and Development - Research and development expenditures for the period amounted to approximately HKD 70.9 million [18]. - The company is focusing on the development of cancer vaccines and pain relief products, with ongoing clinical trials for the cancer vaccine seviprotimut-L and the pain relief drug Halneuron® [5][6]. - The company is investing in Pharus, Inc. to develop innovative early cancer detection solutions, alongside internal research projects targeting melanoma and prostate cancer [8]. - The company is collaborating with Crystal Technology to develop a new AI-driven cancer vaccine research platform [5]. Corporate Governance - The company has adhered to the corporate governance principles outlined in the Hong Kong Stock Exchange's Listing Rules, ensuring compliance with all code provisions and recommended best practices [48]. - The Audit Committee, led by an independent non-executive director, has reviewed the group's interim performance for the six months ended June 30, 2023 [49]. - The Remuneration Committee consists mainly of independent non-executive directors, ensuring a focus on fair compensation practices [50]. - The Nomination Committee is chaired by an independent non-executive director, emphasizing the importance of independent oversight in board appointments [51]. - The Sustainability Committee includes an executive director and an independent non-executive director, highlighting the company's commitment to sustainable practices [52]. - The company maintains high standards of corporate governance and ethical conduct, regularly reviewing its comprehensive corporate governance policies [48]. Employment and Employee Costs - The total number of full-time employees increased to 1,887, up from 1,829 a year earlier, with total employee costs of approximately HKD 546.7 million, a 6% increase year-on-year [20]. - Employee costs for the six months ended June 30, 2023, amounted to HKD 546.7 million, an increase from HKD 515.8 million in 2022, representing a rise of about 6.3% [34].

Financial Performance - For the year ended December 31, 2022, CK Life Sciences reported a profit attributable to shareholders of HKD 132 million, a decrease of 19% compared to 2021[5]. - If calculated using 2021's interest rates and exchange rates, the profit for 2022 would have increased by approximately 41% compared to 2021[5]. - The company's revenue for the year ended December 31, 2022, was HKD 5,275.6 million, a slight decrease from HKD 5,402.3 million in 2021[53]. - The profit attributable to shareholders for 2022 was HKD 131.96 million, down from HKD 162.8 million in 2021, representing a decline of approximately 19%[53]. - Total revenue for the year ended December 31, 2022, was HKD 5,275,590 thousand, a decrease of 2.4% from HKD 5,402,312 thousand in 2021[115]. - The net profit for the year was HKD 131,952 thousand, down 19.0% from HKD 162,801 thousand in the previous year[115]. - Basic earnings per share decreased to 1.37 cents from 1.69 cents, reflecting a decline of 18.9%[115]. - Total comprehensive income for the year was a loss of HKD 249,283 thousand, compared to a loss of HKD 121,504 thousand in 2021[116]. Dividends - The board proposed a final dividend of HKD 0.008 per share for the year ended December 31, 2022, down from HKD 0.01 per share in 2021[5]. - The proposed final dividend for the year ended December 31, 2022, is HKD 0.008 per share, down from HKD 0.01 per share in 2021, totaling HKD 76,889,000 compared to HKD 96,111,000 in 2021[185]. Research and Development - The company's research focuses on two main areas: cancer vaccines and molecular diagnostics, with an emphasis on early cancer detection[6]. - The proprietary multi-valent cancer vaccine, seviprotimut-L, is being developed for melanoma patients and has made progress in the third phase of clinical trials[6]. - CK Life Sciences has initiated multiple cancer vaccine research projects and plans to advance them to clinical trial stages in the coming years[6]. - A strategic research collaboration was established with Crystal Technology, focusing on developing an AI-driven cancer vaccine research platform[6]. - The company is developing a liquid biopsy molecular diagnostic test for early cancer detection, aiming for innovative, cost-effective solutions[8]. - Research and development expenses for 2022 amounted to HKD 158.5 million, reflecting the company's commitment to innovation in cancer diagnostics[56]. Business Segments Performance - Vitaquest's health product business contributed a profit of HKD 262.3 million, an increase of 11% compared to 2021, with a 14% increase when adjusted for foreign exchange rates[8]. - The agricultural business recorded a profit of HKD 336 million, maintaining performance despite challenges from supply chain disruptions and inflation[9]. - The salt business faced profit pressure due to weather-related incidents and labor shortages, but demand for salt products remained steady[9]. - The health product business's performance was bolstered by new product launches and innovative marketing strategies[8]. - The company has invested in Pharus, a subsidiary of Quark Biosciences, to enhance its capabilities in cancer diagnostics[8]. Operational Challenges and Outlook - Future operational performance is expected to improve as market conditions stabilize post-COVID-19, despite ongoing inflation and geopolitical uncertainties[11]. - The company aims to address significant unmet medical needs in pain management with innovative pain relief solutions[7]. - The company is actively seeking investment opportunities globally to enhance its revenue stability and growth potential[52]. Sustainability and Corporate Governance - The company is aligning its sustainability reporting with the TCFD framework to enhance climate-related disclosures[10]. - The company plans to release a sustainability report later this year to disclose its initiatives and progress in sustainable development[10]. - The company has a strong focus on sustainable development, with senior executives like Ye Dequan leading initiatives in this area since December 2020[61]. - The company emphasizes its commitment to corporate governance, with multiple committees in place, including the remuneration and audit committees, to ensure transparency and accountability[63]. Shareholder Information - As of December 31, 2022, the total shareholding of the company's director Li Zeju is 2,838,009,715 shares, representing 29.52% of the total shares[80]. - The major shareholder Gold Rainbow Int'l Limited holds 4,355,634,570 shares, accounting for 45.31% of the total shares[83]. - Trueway International Limited, another significant shareholder, possesses 2,119,318,286 shares, which is 22.05% of the total shares[83]. Financial Position - As of December 31, 2022, total assets were approximately HKD 11,266.8 million, with net assets amounting to HKD 4,155.5 million, equivalent to HKD 0.43 per share[55]. - The company maintained a net debt to total equity ratio of approximately 53.28% as of December 31, 2022, indicating a balanced financial structure[55]. - The total number of full-time employees as of December 31, 2022, was 1,856, with total employee costs, including director remuneration, amounting to HKD 1,035.6 million, a decrease of 3.2% from the previous year[58]. - The company has no significant contingent liabilities as of December 31, 2022, maintaining a stable financial position[59]. Investment and Acquisitions - The company is focused on expanding its market presence in Australia and New Zealand through strategic management of vineyard assets[69]. - The company is exploring potential mergers and acquisitions to strengthen its market position and expand its product offerings[69]. - The company completed a subscription agreement on July 25, 2022, where Joris Investments Limited and Cosmic Classic Limited each subscribed for 5,500,000 shares of A2 series preferred stock, resulting in a combined ownership of approximately 18.33% of Pharus, Inc.[98]. Compliance and Audit - The independent auditor, Deloitte, confirmed that the financial statements accurately reflect the company's financial position as of December 31, 2022[105]. - The company adheres to regulatory requirements from agencies such as the FDA, TGA, and Health Canada[73]. - The group is responsible for preparing financial statements that are free from material misstatement due to fraud or error, and for maintaining effective internal controls[111].

Financial Performance - The company's unaudited profit attributable to shareholders for the first half of 2022 was approximately HKD 65.1 million, a decrease of 35% compared to the same period last year[9]. - Revenue for the six months ended June 30, 2022, was HKD 2,540.6 million, compared to HKD 2,638.4 million in the same period of 2021, representing a decrease of approximately 3.7%[38]. - The gross profit for the six months ended June 30, 2022, was HKD 781.7 million, down from HKD 822.6 million in the previous year, indicating a decline of about 5%[38]. - Profit before tax for the six months ended June 30, 2022, was HKD 106.1 million, compared to HKD 138.9 million in the same period of 2021, reflecting a decrease of approximately 23.6%[38]. - The net profit for the six months ended June 30, 2022, was HKD 65.1 million, down from HKD 100.4 million in the previous year, a decline of about 35.1%[40]. - Basic and diluted earnings per share for the six months ended June 30, 2022, were both HKD 0.68 cents, compared to HKD 1.04 cents in the same period of 2021[38]. - The healthcare products segment experienced a 27% decline in profit compared to the previous year due to labor, supply chain, and cost pressures[13]. - The agricultural segment's profit decreased by 9% year-on-year, impacted by supply chain disruptions and extreme weather events affecting demand[15]. Business Environment and Challenges - The business environment faced by the company in the first half of 2022 was the most challenging since the onset of the pandemic, with supply chain disruptions and rising costs impacting operations[9]. - The ongoing pandemic and its variants have led to weakened consumer sentiment and operational challenges, affecting the company's financial outlook[82]. - Labor market changes, including high absenteeism and rising inflation, create uncertainty in labor supply and costs, impacting recruitment and training efforts[83]. - Supply chain disruptions have increased costs and delivery times, particularly in regions where the company operates, complicating operations[84]. - The global economy is experiencing significant slowdowns due to COVID-19, supply chain disruptions, and rising inflation, which may impact the company's business and financial performance[81]. Research and Development - The research and development focus includes cancer vaccines and pain relief products, with the lead cancer vaccine, seviprotimut-L, undergoing delays due to supply chain issues[10]. - The third phase of the critical clinical trial for seviprotimut-L has been approved by the U.S. FDA and will proceed under a Special Protocol Assessment[10]. - The company is advancing multiple cancer vaccine projects in preclinical development, aiming to progress to clinical trial stages in the coming years[11]. - WEX Pharmaceuticals Inc. is developing a pain relief drug, Halneuron®, based on tetrodotoxin, with FDA and Health Canada approval for a Phase 3 clinical trial targeting chemotherapy-induced neuropathic pain (CINP)[12]. - The group invested approximately HKD 58.8 million in research and development activities during the six months ended June 30, 2022[34]. - Research and development expenses for the period were HKD 58,769, compared to HKD 97,711 in the same period of 2021, indicating a reduction in R&D spending[48]. Corporate Governance - The company has implemented corporate governance principles emphasizing board quality, internal controls, and transparency to shareholders[70]. - The company has established a whistleblowing policy to handle potential misconduct and has policies against fraud and bribery[70]. - The company complied with all provisions of the corporate governance code as per the Hong Kong Stock Exchange rules during the reporting period[70]. - The board consists of eleven members, including five executive directors, one non-executive director, and five independent non-executive directors, ensuring compliance with listing rules[71]. - The audit committee, formed by three independent non-executive directors, reviewed the interim report for the six months ending June 30, 2022[75]. Financial Position - As of June 30, 2022, the total assets of the group were approximately HKD 11,395.7 million, including bank deposits and fixed deposits of about HKD 847.1 million[31]. - The total liabilities of the group were HKD 7,098.1 million, with bank borrowings amounting to HKD 5,623.8 million, primarily used for acquiring overseas businesses and general working capital[31]. - The net debt to total equity ratio was approximately 52.64% as of June 30, 2022, indicating a significant leverage position[31]. - The total equity as of June 30, 2022, was HKD 4,297.6 million, down from HKD 4,500.8 million as of December 31, 2021[42]. - The company’s total cash and cash equivalents at the end of June 2022 were HKD 847,086, an increase from HKD 673,019 at the end of June 2021[44]. Market and Competitive Landscape - The company faces intense competition and rapid technological advancements, which may adversely affect its business and financial performance[85]. - Significant investment in research and development is ongoing, but the success of these efforts is uncertain due to regulatory challenges and recruitment difficulties[86]. - Industry trends, including market conditions and interest rate fluctuations, pose significant risks to the company's financial outlook[88]. Risks and Uncertainties - The company's liquidity may be affected by the ability to refinance bank loans and other funding sources[89]. - Asset impairment risks exist, as the company must assess the recoverable value of its tangible and intangible assets at the end of reporting periods[90]. - The group’s assets and operations are at risk from natural disasters such as earthquakes, floods, and typhoons, which could significantly adversely affect its business and financial condition[102]. - Climate change poses risks to the group’s products, particularly agricultural-related products, affecting demand, supply, quality, and prices[103]. - New regulatory requirements for climate-related financial risk disclosures may impact the group’s operations, financial condition, and reputation[103].

Financial Performance - The company reported a profit attributable to shareholders of HKD 162.8 million for the year ended December 31, 2021, compared to HKD 125.2 million in the previous year, representing a growth of 30%[7]. - Long江生命科技's revenue for 2021 was HKD 5,402,312, an increase from HKD 4,942,544 in 2020, representing a growth of approximately 9.3%[46]. - The company reported a net profit of HKD 162,801 thousand for 2021, compared to HKD 125,234 thousand in 2020, representing a year-over-year increase of about 30.1%[182]. - Total revenue for the year ended December 31, 2021, was HKD 5,402,312 thousand, an increase of 9.3% from HKD 4,942,544 thousand in 2020[112]. - Basic earnings per share increased to HKD 1.69 cents from HKD 1.30 cents in 2020, representing a growth of 30%[112]. - The company reported a pre-tax profit of HKD 238,239 thousand, significantly higher than HKD 119,126 thousand in 2020, indicating strong operational performance[112]. - The total tax expense for 2021 was HKD 75,438 thousand, compared to a tax credit of HKD 6,102 thousand in 2020, indicating a significant change in tax position[180]. Revenue Growth - The health products business saw a revenue increase of 11% compared to 2020, driven by rising consumer health awareness despite ongoing supply chain disruptions[7]. - The agricultural-related business experienced a revenue increase of 7% year-on-year, aided by improved customer confidence in purchasing agricultural products[8]. - Human health business revenue increased to HKD 3,122,293,000 from HKD 2,814,728,000, representing a growth of 10.9%[174]. - Agricultural-related business revenue was HKD 2,091,543,000, up from HKD 1,961,086,000, reflecting a growth of 6.7%[174]. - Rental income rose to HKD 187,100,000 from HKD 165,824,000, marking an increase of 12.8%[174]. Research and Development - The company plans to advance multiple cancer vaccine research projects currently in preclinical development to clinical trial stages in the coming years[9]. - The cancer vaccine sevivrotimut-L is undergoing Phase III clinical trials as an adjuvant therapy for melanoma patients, with clinical data published in a major medical journal[9]. - The company is focusing on preclinical trials for immunotherapy and accelerating late-stage R&D projects to create further value opportunities[11]. - The company is actively developing Halneuron™, a pain relief drug based on tetrodotoxin, with plans for a Phase III clinical trial approved by both the FDA and Health Canada[38]. Operational Efficiency - The company is focusing on cost-saving measures and optimizing product offerings to mitigate the impact of high shipping costs and supply chain disruptions[8]. - The company is investing in new equipment and cross-functional technology projects to improve customer service and operational efficiency[8]. - The company aims to adapt to a volatile operating environment as its primary objective moving forward[21]. - The company is committed to innovation in product design and development, particularly in the health and wellness sector[66]. Sustainability and Corporate Governance - Long江生命科技 has established a sustainability committee to set and achieve multiple environmental goals, with a sustainability report to be published later this year[12]. - The group is committed to improving environmental management and has set goals for energy reduction, waste minimization, and the use of sustainable materials[68]. - The group actively engages with stakeholders to gather insights on market demands, which informs decisions on sustainability practices and disclosures[68]. - The company emphasizes sustainable development and corporate governance, with key members holding significant qualifications in these areas[63]. Shareholder Information - The board has proposed a final dividend of HKD 0.01 per share for the year ended December 31, 2021, consistent with the previous year[7]. - The company reported a total of 2,838,009,715 shares held by major shareholders, with Li Zeju holding 29.52% of the total shares[75]. - Gold Rainbow Int'l Limited and its controlled entities collectively hold 4,355,634,570 shares, representing 45.31% of the total shares[78]. - The company has a significant concentration of ownership, with major shareholders holding over 45% of the total shares[78]. Financial Position - Total assets as of December 31, 2021, amounted to HKD 11,731 million, with cash and bank deposits of approximately HKD 890.8 million[48]. - The group's total equity as of December 31, 2021, was HKD 4,500.8 million, equivalent to HKD 0.47 per share[48]. - The net debt to total equity ratio was approximately 51.33% as of December 31, 2021[48]. - The total liabilities included current liabilities of HKD 2,075.1 million and non-current liabilities of HKD 5,155.1 million as of December 31, 2021[47]. Audit and Compliance - The audit opinion confirmed that the consolidated financial statements fairly present the group's financial position as of December 31, 2021, in accordance with Hong Kong Financial Reporting Standards[97]. - The audit was conducted in accordance with Hong Kong Auditing Standards, ensuring the independence of the auditors from the group[98]. - The group’s financial statements were prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance[97]. Employee and Operational Metrics - The total number of full-time employees as of December 31, 2021, was 1,855, with total employee costs, including directors' remuneration, amounting to HKD 1,069.5 million, a 4.9% increase from the previous year[50]. - Employee costs rose to HKD 571,564 thousand from HKD 540,546 thousand, reflecting the company's investment in human resources[112]. - The group has implemented a performance-linked compensation mechanism to attract and retain talent, ensuring competitiveness in the market[69].

Financial Performance - The company's unaudited profit attributable to shareholders for the six months ended June 30, 2021, was approximately HKD 100 million, representing a 15% increase compared to the same period last year[15]. - The company reported a significant increase in revenue, achieving a total of $X million for the fiscal year, representing a Y% growth compared to the previous year[31]. - Revenue for the six months ended June 30, 2021, was HKD 2,638,388 thousand, an increase of 10.9% from HKD 2,379,530 thousand in the same period of 2020[44]. - Net profit for the period was HKD 100,394 thousand, up 14.7% from HKD 87,441 thousand in the prior year[46]. - Total comprehensive income for the period was HKD 90,931 thousand, significantly higher than HKD 31,888 thousand in the previous year, marking a 184.5% increase[46]. - The company reported a pre-tax profit of HKD 138,895 thousand for the six months ended June 30, 2021, compared to HKD 126,950 thousand in the same period of 2020, representing an increase of 9.5%[55]. - The company reported a profit for the period of HKD 100,394 thousand, up from HKD 87,441 thousand in the prior year, reflecting an increase of 14.4%[58]. Research and Development - Despite challenges from the COVID-19 pandemic, the company continued to invest more resources in pharmaceutical research and development, achieving steady progress in its projects[15]. - The focus of the pharmaceutical research and development projects is on cancer vaccines and pain relief[16]. - The company is collaborating with research institutions in Taiwan, mainland China, and other regions on multiple cancer vaccine development projects, aiming to progress to clinical trial stages in the coming years[17]. - The proprietary multivalent vaccine (seviprotimut-L) for melanoma is currently under development by the company's US subsidiary, Polynoma LLC[18]. - WEX Pharmaceuticals is developing HalneuronTM, a pain relief drug based on tetrodotoxin, which could become a first-in-class treatment for chemotherapy-induced neuropathic pain (CINP)[19]. - The company plans to accelerate the development of seviprotimut-L, other cancer vaccines, and HalneuronTM as the pandemic situation improves[23]. - The group has invested significant time and resources in research and development to demonstrate product efficacy and safety for commercial sale[93]. Operational Highlights - The health products business saw a 9% increase in revenue compared to the same period last year, despite challenges from social distancing and labor shortages[20]. - Agricultural-related business revenue grew by 13% year-on-year, benefiting from favorable weather and planting conditions[21]. - The vineyard assets acquired in 2020 provided stable rental income and recurring cash flow during the first half of the year[22]. - Cheetham's operations continue to perform well, maintaining a leading position in the Australian and New Zealand markets[22]. - The health products and agricultural-related businesses are expected to continue their growth trends as operational conditions improve[23]. Financial Position - As of June 30, 2021, the total assets of the group were approximately HKD 11,839.1 million, including bank deposits and fixed deposits of about HKD 673.0 million[37]. - The total liabilities of the group were HKD 7,125.8 million, with bank and other borrowings amounting to HKD 5,600.6 million, primarily used for acquiring overseas businesses[37]. - The net debt to total equity ratio was approximately 51.11% as of June 30, 2021[37]. - The total number of full-time employees increased to 1,873 as of June 30, 2021, up from 1,773 a year earlier, representing an increase of 100 employees[42]. - Employee total costs, including directors' remuneration, were approximately HKD 542.2 million for the six months ended June 30, 2021, an increase of 8% compared to the same period in 2020[42]. - The company’s inventory increased to HKD 1,453,441 thousand from HKD 1,370,102 thousand, reflecting a growth of 6.1%[47]. Corporate Governance - The company has implemented a whistleblowing policy to handle potential misconduct and has established policies for handling confidential information and securities trading[79]. - The internal audit mechanism evaluates the effectiveness of the risk management and internal control systems, focusing on financial, operational, and compliance monitoring[83]. - The company has adhered to the corporate governance code and has maintained transparency and accountability to all shareholders[79]. - The company established an Audit Committee on June 26, 2002, consisting of three independent non-executive directors to oversee financial reporting, risk management, and internal control systems[84]. - The Remuneration Committee was formed on January 1, 2005, with a majority of independent non-executive directors to review and recommend remuneration policies for directors and management[85]. - The Nomination Committee was established on January 1, 2019, to review the board's structure, size, diversity, and independence, and to make recommendations for the re-election of directors[86]. - A Sustainability Committee was formed on December 1, 2020, to manage sustainable development measures and assess related risks[87]. Market and Economic Conditions - The ongoing COVID-19 pandemic has severely impacted global economic activities, with uncertainties affecting the company's business and financial performance[90]. - The emergence of highly infectious diseases continues to pose significant adverse effects on the economy and the company's operations[91]. - The group faces intense competition and rapid technological developments in its operating markets, which may negatively impact its business and financial outlook[92]. - The group faces potential challenges in securing bank loans and refinancing, which could impact liquidity[96]. - The group operates in various jurisdictions, facing local, national, and international regulatory risks that could impact business performance[101]. - The group acknowledges that new accounting standards may significantly affect its financial condition, operational performance, or profit growth[105]. Risks and Challenges - The group is exposed to risks from natural disasters and climate change, which could adversely affect its business, financial condition, and operational performance[108]. - The group cannot guarantee that social events or terrorist threats will not impact its operations, potentially leading to adverse effects on its business and financial status[104]. - Cybersecurity risks pose a significant threat to the group's operations and reputation, despite no major incidents reported to date[99]. - Currency fluctuations may affect the group's financial condition and potential income, as subsidiaries may operate in different currencies[98]. - The group's financial and treasury income is heavily dependent on capital markets, interest rates, and foreign exchange rates, which may pose significant risks[95].

Financial Performance - For the year ended December 31, 2020, the company recorded a profit attributable to shareholders of HKD 125 million, a decrease of approximately 31% compared to 2019, primarily due to the impact of the COVID-19 pandemic [6]. - The company reported a total revenue of HKD 4,942.5 million for the year ended December 31, 2020, a slight decrease from HKD 4,967.0 million in 2019 [36]. - The net profit attributable to shareholders decreased to HKD 125.2 million in 2020 from HKD 181.7 million in 2019, reflecting a decline of approximately 30.9% [36]. - The company reported a profit before tax of HKD 119,126 thousand for 2020, down from HKD 217,435 thousand in 2019, a decline of approximately 45.4% [168]. - Basic earnings per share for 2020 was 1.30 cents, down from 1.89 cents in 2019, reflecting a decrease of 31.1% [100]. - The company reported a significant leadership structure with key executives including Li Zeju as Chairman and Gan Qinglin as President, both having extensive experience in various roles since 2002 [43][44]. Business Segments - The company's health product business experienced a 56% decline in profit contribution compared to 2019, affected by various lockdown measures implemented in response to the pandemic [6]. - The agricultural business, while impacted by the pandemic, showed resilience due to favorable climatic conditions and improved performance of vineyard assets [6]. - Revenue from agricultural-related business increased to HKD 1,961,086,000 in 2020, up from HKD 1,788,836,000 in 2019, reflecting a growth of about 9.6% [161]. - Revenue from human health business decreased to HKD 2,814,728,000 in 2020, down from HKD 3,021,285,000 in 2019, indicating a decline of approximately 6.9% [161]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.01 per share for the year ended December 31, 2020, consistent with the previous year's dividend [6]. - The total dividend proposed for 2020 is HKD 96,111 thousand, consistent with the dividend of HKD 96,111 thousand in 2019 [171]. COVID-19 Impact - Vitaquest, a subsidiary, faced significant production reductions due to COVID-19, but managed to adjust margins and costs effectively during the pandemic [6]. - SNAG, a subsidiary in Canada, continued to supply immunity-related health products during lockdowns, maintaining its brand position despite reduced foot traffic in retail stores [6]. - Lipa Pharmaceuticals in Australia faced supply chain disruptions and increased costs due to international shipping constraints, leading to production order delays [6]. - The pandemic has not significantly impacted the Australian and New Zealand wine industries, with increased wine consumption noted during lockdowns [12]. Research and Development - The company invested approximately HKD 149.8 million in research and development activities in 2020, indicating a commitment to innovation despite financial challenges [39]. - The cancer vaccine development program, specifically seviprotimut-L, received Fast Track designation from the US FDA, facilitating more frequent communication and potential expedited approval [7]. - The company is focusing on research for vaccines targeting multiple types of cancer beyond melanoma [7]. Sustainability Initiatives - The company established a sustainability committee at the board level in 2020 to oversee its sustainability strategy [8]. - A sustainable development report will be published in April 2021 to disclose the company's sustainability initiatives [8]. - The group has implemented an environmental policy to guide global business environmental management and is taking measures to reduce energy consumption and improve energy efficiency [59]. Financial Position - Total assets as of December 31, 2020, were approximately HKD 11,977.7 million, with total equity amounting to HKD 4,718.5 million, equivalent to HKD 0.49 per share [38]. - The company reported a total comprehensive income of HKD 644,601 thousand for 2020, compared to HKD 54,271 thousand in 2019, indicating a substantial improvement [101]. - The total value of investment properties increased to HKD 2,032,170 thousand as of December 31, 2020, up from HKD 1,673,043 thousand in 2019, representing a growth of 21.5% [172]. Operational Efficiency - The company is focusing on enhancing online sales and developing market expansion plans beyond Quebec to other regions in Canada and North America [6]. - The company is implementing improvement measures, including new factory production and the installation of new machinery to enhance customer relationship management [6]. - Vitaquest implemented several digital solutions to streamline customer relationship management and optimize communication with clients [24]. Governance and Leadership - The company has a diverse board of directors, including independent non-executive directors like Guo Liqiang, who has held various significant positions in other listed companies, enhancing corporate governance [46]. - The company emphasizes the importance of education and qualifications among its leadership, with degrees in engineering, business administration, and economics held by key executives [44][45]. - The independent directors have been involved in various committees, including audit and nomination committees, ensuring robust governance practices [48][50]. Market Outlook - The company remains cautiously optimistic about its business outlook as vaccination programs are implemented globally, expecting improvements in operational conditions [8]. - The company anticipates continued growth in the health product sector, maintaining a positive outlook for the mid to long-term future [23].

Financial Performance - For the six months ended June 30, 2020, CK Life Sciences reported an unaudited profit attributable to shareholders of approximately HKD 87 million, a decrease of 49% compared to the same period last year[10]. - The group reported a total revenue of HKD 2,379,530 thousand for the six months ended June 30, 2020, a decrease of 8.4% compared to HKD 2,596,514 thousand in the same period of 2019[38]. - The net profit for the period was HKD 87,441 thousand, down 50.5% from HKD 176,047 thousand in the previous year[40]. - The company reported a net loss attributable to shareholders of HKD 103,347 thousand for the six months ended June 30, 2020, compared to a profit of HKD 171,253 thousand in the same period of 2019[43]. - The company reported a net profit of HKD 87,441,000 for the period, compared to HKD 171,253,000 in 2019, a decline of 48.9%[54]. - The group’s total liabilities amounted to HKD 6,000 million, with bank and other borrowings totaling HKD 5,336.7 million, primarily used for acquiring overseas businesses[32]. - The company’s current liabilities increased to HKD 4,070,953 thousand from HKD 3,575,440 thousand, reflecting a rise of approximately 13.83%[41]. - The total equity as of June 30, 2020, was HKD 4,110,527 thousand, a slight decrease from HKD 4,174,750 thousand as of December 31, 2019[42]. - The company’s investment income rose to HKD 906 thousand in 2020 from HKD 453 thousand in 2019, marking an increase of 100%[49]. - The company did not recommend an interim dividend for the six months ended June 30, 2020, compared to no dividend in 2019[55]. Impact of COVID-19 - The healthcare products business experienced a 29% decline in profit contribution compared to the first half of 2019 due to the impact of COVID-19 lockdown measures in key operational regions[11]. - The company's operations in the United States, Canada, and Australia faced severe disruptions, with production nearly halted and significant drops in output due to strict lockdown measures[10]. - The pandemic's impact on logistics and supply chains severely affected the operations of the three healthcare product companies located in heavily affected areas[11]. - The lockdown measures in the regions where the company operates led to strict restrictions on movement and logistics, hindering normal business operations[11]. - The company emphasized the ongoing challenges in human resources and raw material supply due to the pandemic[11]. - The COVID-19 pandemic negatively impacted the mid-year performance of Changjiang Life Sciences in 2020, but the business foundation remained unaffected, supported by a diversified investment portfolio[22]. - The health products business faced temporary disruptions due to high infection rates in various regions, yet the overall outlook remains optimistic as consumer focus on health is expected to drive demand for health products[23]. - The ongoing COVID-19 pandemic has severely impacted global economic activities, creating significant uncertainty regarding economic recovery and business operations[84]. Operational Challenges - The New Jersey facility of Vitaquest, a subsidiary, recorded a significant drop in production and incurred operating losses in April due to high absenteeism from employees during the pandemic[11]. - SNAG's local sales revenue declined due to lockdown measures, despite increased demand for immunity-related products[12]. - Lipa's production capacity was weakened by labor and material shortages, leading to increased material prices and shipping costs, impacting margins[12]. - The company is exploring solutions to combat the COVID-19 pandemic, including agreements to distribute RT-PCR testing kits and serological rapid test kits[21]. Research and Development - Research and development expenditures for the period were approximately HKD 49.7 million, reflecting the group's commitment to innovation[34]. - The company will actively review and allocate appropriate resources to support research projects[23]. - Substantial investment in research and development is required to demonstrate product efficacy and safety for commercial sale, with potential challenges in patient recruitment for trials[87]. Governance and Management - The company has appointed independent non-executive directors with extensive experience in various sectors, including finance and international relations[29][30]. - The independent non-executive director Guo Liqiuhua has been with the company since June 2002 and has held multiple committee positions, including chair of the remuneration committee since January 2012[29]. - Independent non-executive director Kwan Kai Cheung has been with the company since March 2015 and serves as the chairman of the audit committee, bringing over a decade of experience from Merrill Lynch[30]. - The company has a diverse board with members holding significant positions in other publicly listed companies, enhancing its governance and strategic oversight[29][30]. - The board's composition reflects a strong emphasis on corporate governance and risk management, with members having backgrounds in finance, law, and international business[29][30]. - The company is focused on maintaining a robust governance structure to support its strategic objectives and market expansion efforts[29][30]. - The independent directors are involved in various committees, ensuring comprehensive oversight of the company's operations and strategic direction[29][30]. - The company is committed to leveraging the expertise of its board members to navigate market challenges and capitalize on growth opportunities[29][30]. Market and Economic Conditions - The group operates in a market environment influenced by consumer spending ability, securities market prices, foreign currency exchange rates, and interest rate cycles, which may pose significant risks to its business and financial condition[89]. - The group's financial and treasury income is particularly dependent on capital markets, interest rates, and foreign currency exchange rates, with fluctuations potentially impacting its business performance[89]. - The group faces intense competition and rapid technological advancements in its operating markets, which may adversely affect its business and financial performance[86]. - The group is subject to local, national, and international regulations that may impact its operations and financial condition, including potential increases in operational and capital expenditures[95]. Environmental and External Risks - Natural disasters and climate change pose risks to the group's assets and operations, potentially leading to significant adverse effects on financial performance[101]. - The group cannot guarantee that natural disasters will not severely damage its assets or facilities, impacting business and financial conditions[101]. - Climate change may affect the demand, supply, quality, and pricing of many products, particularly agricultural-related ones, influencing the group's business performance[101]. - Environmental changes, such as increased pollution, could impact the performance of certain assets, like salt production from coastal areas[101]. Financial Position and Assets - As of June 30, 2020, the total assets of the group were approximately HKD 10,728.0 million, with cash and bank deposits amounting to HKD 596.4 million[32]. - The group’s debt-to-equity ratio was approximately 53.56%, indicating a moderate level of leverage[32]. - The company’s non-current assets increased to HKD 7,773,533 thousand from HKD 7,668,343 thousand, with significant contributions from investment properties and property, plant, and equipment[41]. - Investment property valuation increased to HKD 1,686,615,000 as of June 30, 2020, from HKD 1,673,043,000 at the beginning of the year[56]. - The company has a significant shareholder, Gold Rainbow Int'l Limited, holding 4,355,634,570 shares, representing 45.31% of total shares[72]. - The company has a total of HKD 601.6 million in unsecured loans, with an interest rate based on Hong Kong Interbank Offered Rate plus 1.05%[15].