格隆汇6月9日丨大成生化科技(00809.HK)公告，为促成供应商债务重组安排，相关供应商近期已专为供 应商债务重组安排设立供应商中国合伙企业。所有供应商中国合伙企业均以相同方式设立，因此所有相 关供应商参照集团结欠彼等的应付款项金额享有供应商债务重组安排项下的同等权利。 于2025年6月9日，(i)各供应商中国合伙企业(作为初始债权人及认购人)；(ii)世纪大成(作为债务人及发 行人)；(iii)公司全资附属公司及世纪大成直接股东大成生化科技集团有限公司("大成香港")订立各份债 转股协议。根据债转股协议，各供应商中国合伙企业将动用各供应商债务金额(合共人民币461.1百万元) 认购世纪大成新增注册资本，于完成后，该等资本应视为已缴足注册资本，合共占世纪大成约28.98% 股权。 债转股协议完成须待集团取得所有监管同意及授权，包括但不限于商务部主管部门所要求的批准或备案 后，方告作实。债转股协议完成后，世纪大成将由供应商中国合伙企业合共持有约28.98%，及由大成 香港持有约71.02%。世纪大成将仍为公司附属公司。债转股协议已包含禁售条款，据此供应商中国合 伙企业所持世纪大成任何股权仅可为供应商债务重组安 ...

诚如本公司截至2024年12月31日止年度的年报所披露，长春大合的生产设施于2024年全年保持正常营 运，并于年内为本集团贡献大量收入。尽管长春大合对本集团有重大财务贡献，惟自其生产厂区成立以 来超过20年间，长春大合一直使用中温/次高压锅炉及配套发电机组。鉴于中国广泛使用更具成本效益 的高温/高压及超高温/超高压锅炉，并考虑到本集团整体的可持续发展，长春大合有必要对其生产厂区 的锅炉设施进行翻修，并对锅炉机组进行系统升级，以降低成本并提升市场竞争力。由于本集团主要于 中国从事生产及销售玉米提炼产品及以玉米为原料的生化产品，本集团并无进行同类及类似规模翻修项 目的相关资质及能力。通过订立EPC合约，本集团可将锅炉翻修项目外判予合适的EPC承包商，从而减 少不必要的行政成本，并通过公平竞争选择优质供应商。 智通财经APP讯，大成生化科技(00809)发布公告，该公司已议决重新启动长春大合的锅炉翻修项目，并 拟通过与合适的EPC 承包商签订EPC合约，以(其中包括)对长春大合的锅炉设施进行翻修。由于本公司 的控股股东最终由吉林省国资委控制，本集团须通过公开招标方式为锅炉翻修项目遴选合适的EPC承包 商，且本公司须 ...

智通财经APP讯，大成生化科技(00809)公布，于2025年5月20日，该集团参加由长春经济技术开发区管 委会与长春市股权投资基金管理有限公司共同举办的长春经开区合成生物产业创新发展先导区啓动大 会，于大会上，该公司全资附属公司长春鸿成生物化工材料技术开发有限公司(鸿成生物技术)，与在中 华人民共和国成立的合肥和晨生物科技有限公司(合肥和晨)，订立战略合作框架协议。 于签订战略合作框架协议后，中试平台揭牌仪式于大会期间顺利举行，标誌着技术成果转化为产业化成 果进程中的"最后一公里"桥接完成，助力生物基化学品、医疗材料及其他相关领域的产业化突破。 于本公告日期，集团的兴隆山生产基地仍然暂停营运。 作为大会议程之一，鸿成生物技术与合肥和晨订立战略合作框架协议，据此，彼等将利用双方在合成生 物学领域的各自优势，聚焦吉林省重点产业相关应用，支持该省生物制造产业发展。具体而言，战略合 作旨在将本集团在技术规模化、工艺优化、生产流程设计及成本控制等方面的经验，与合肥和晨在合成 生物学领域的优势(包括基因设计、菌种构建及代谢途径优化等技术)相结合，共同推进合成生物技术在 氨基酸领域的产业化应用，从而增强双方的市场竞争力。 ...

作为大会议程之一，鸿成生物技术与合肥和晨订立战略合作框架协议，据此，彼等将利用双方在合成生 物学领域的各自优势，聚焦吉林省重点产业相关应用，支持该省生物制造产业发展。具体而言，战略合 作旨在将集团在技术规模化、工艺优化、生产流程设计及成本控制等方面的经验，与合肥和晨在合成生 物学领域的优势(包括基因设计、菌种构建及代谢途径优化等技术)相结合，共同推进合成生物技术在氨 基酸领域的产业化应用，从而增强双方的市场竞争力。 格隆汇5月23日丨大成生化科技(00809.HK)公告，于2025年5月20日，集团参加由长春经济技术开发区管 委会与长春市股权投资基金管理有限公司共同举办的长春经开区合成生物产业创新发展先导区启动大 会，于大会上，公司全资附属公司长春鸿成生物化工材料技术开发有限公司("鸿成生物技术")，与在中 华人民共和国("中国")成立的合肥和晨生物科技有限公司("合肥和晨")，订立战略合作框架协议。 于签订战略合作框架协议后，中试平台揭牌仪式于大会期间顺利举行，标志着技术成果转化为产业化成 果进程中的"最后一公里"桥接完成，助力生物基化学品、医疗材料及其他相关领域的产业化突破。 合肥和晨为一间于中国成立的有 ...

Financial Performance - The total revenue for the year ended December 31, 2024, was HKD 2,001,095,000, representing a 45.5% increase from HKD 1,373,938,000 in 2023[3] - Gross profit for the same period was HKD 190,972,000, compared to HKD 43,637,000 in 2023, indicating a significant improvement in profitability[3] - The net profit attributable to the company's owners for 2024 was HKD 769,598,000, down 81.8% from HKD 4,224,593,000 in 2023[5] - The company reported a pre-tax profit from continuing operations of HKD 745,619,000, a decrease of 80.1% from HKD 3,701,045,000 in the previous year[3] - Total comprehensive income for the year was HKD 358,324,000, a decline of 89.8% compared to HKD 3,508,029,000 in 2023[5] - Revenue from continuing operations for 2024 reached HKD 2,001,095,000, a 45.5% increase from HKD 1,373,938,000 in 2023[34] - The total profit before tax for the fiscal year was HKD 3,701,045,000, with the amino acids segment showing a significant improvement in performance compared to the previous year[31] - The company reported a total profit for the year of HKD 769,598,000, which includes a profit from discontinued operations of HKD 481,466,000[31] Assets and Liabilities - The company’s total assets decreased to HKD 4,442,182,000 in 2024 from HKD 5,209,096,000 in 2023, reflecting a reduction of 14.7%[6] - Current liabilities amounted to HKD 6,486,145,000, down from HKD 8,395,603,000 in 2023, indicating a 22.8% decrease[6] - As of December 31, 2024, the group recorded a net current liability of approximately HKD 4,386,400,000, down from HKD 7,426,100,000 as of December 31, 2023[10] - The group's net liabilities were approximately HKD 1,954,400,000 as of December 31, 2024, compared to HKD 4,036,900,000 in the previous year[10] - The company’s total liabilities decreased to HKD 2,658,768,000 in 2024 from HKD 3,571,683,000 in 2023, a reduction of 25.5%[52] Cash Flow and Financial Management - The company’s cash and bank balances were HKD 85,470,000, slightly down from HKD 88,246,000 in 2023[6] - The group plans to enhance operational cash flow by maximizing production capacity in its amino acid business and expects to launch a series of high-value products to increase sales[11] - The group is implementing measures to reduce operating costs and develop new businesses to strengthen cash flow during market volatility[11] - The group anticipates that its amino acid business will continue to generate sufficient cash inflow in 2025[11] - The financial costs for continuing operations decreased to HKD 323,402,000 in 2024 from HKD 750,351,000 in 2023, indicating improved financial management[38] Operational Highlights - The company has not reported any significant changes in its main business operations, which focus on the production and sale of corn-refined products and biochemical products[8] - The group completed the sale of Changchun Dacheng Industrial Group, improving its financial condition by eliminating liabilities associated with the sold group[10] - The group recognized a one-time gain from debt restructuring of approximately HKD 4,284,800,000, significantly impacting the financial results for the year[39] - The group reported a significant one-time gain of approximately HKD 1,962,100,000 from the sale of subsidiaries, which are no longer consolidated in the financial statements[69] Market and Product Development - The company is exploring new strategies for market expansion and product development, although specific details were not disclosed in the report[8] - The amino acid segment's revenue increased by approximately 50.2% to HKD 1,736,900,000, compared to HKD 1,156,700,000 in the previous year, with a sales volume of 280,000 tons[71] - The group plans to redesign the boiler facility renovation project to reduce amino acid production costs and enhance competitiveness[68] Shareholder Information - The company does not recommend any dividend distribution for the current year, consistent with 2023[42] - The company issued 14,535,514,629 shares of convertible preferred stock to Jilin Liheng and 2,732,235,940 shares to Jilin Yuanheng, with a conversion ratio of one preferred share to one common share[55] - The total value of the convertible preferred stock subscription amounts to approximately HKD 1,726,775,056.97, equivalent to RMB 1,580,000,000[56] - The company repurchased 31,666,000 shares under the share buyback authorization, which is 10% of the total shares issued as of the special general meeting[57] Employee and Operational Metrics - The group employed approximately 1,567 full-time employees as of December 31, 2024, a decrease from 2,154 in 2023[106] - Employee costs from continuing operations amounted to approximately HKD 107.97 million, down from HKD 115.04 million in 2023[106] Compliance and Reporting - The adoption of new and revised Hong Kong Financial Reporting Standards has not had a significant impact on the consolidated financial statements[16] - The company's financial statements have been prepared in accordance with Hong Kong Financial Reporting Standards, presenting a true and fair view of its financial position as of December 31, 2024[61] - The auditor confirmed that the figures in the announcement align with the group's consolidated financial statements for the year[115]

GLOBAL Bio-Chem Technology Group Company Limited 大 成 生 化 科 技 集 團 有 限 公 司 * 股份代號：00809 中 期 報 目錄 | --- | --- | |------------------------------|-------| | | | | | | | 釋義 2 | | | 公司資料 6 | | | 致股東簡報 7 | | | 管理層討論及分析 9 | | | 其他資料的披露 21 | | | 簡明綜合財務報表 | | | 簡明綜合損益及其他全面收益表 | 28 | | 簡明綜合財務狀況表 30 | | | 簡明綜合權益變動表 32 | | | 簡明綜合現金流量表 33 | | | 簡明綜合財務報表附註 35 | | C017167 | --- | --- | --- | |--------------------------|-------|-------------------------------------------------------------------------------------------------- ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 *僅供識別 — 1 — GLOBAL BIO-CHEM TECHNOLOGY GROUP COMPANY LIMITED 大 成 生 化 科 技 集 團 有 限 公 司 * （於開曼群島註冊成立的有限公司） （股份代號：00809） 截至2024年6月30日止六個月 中期業績公告 大成生化科技集團有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此公佈本公 司及其附屬公司（統稱「本集團」）截至2024年6月30日止六個月（「本期間」）的未經 審核綜合中期業績。 簡明綜合損益及其他全面收益表 截至2024年6月30日止六個月 截至6月30日止六個月 | --- | --- | --- | --- | |----------------------------------------------------------------------------------------|----------| ...

Financial Performance - Total revenue for 2023 was 715 million, a decrease from 811 million in 2022, representing a decline of approximately 11.8%[67]. - The net asset value of the indirect major shareholder, Nongtou, was approximately RMB 2,010.7 million as of December 31, 2023, down from RMB 2,105.5 million in 2022, indicating a decrease of about 4.5%[74]. - The company plans to repay the total transferred loans amounting to RMB 1,580 million to Nongtou by January 30, 2024, as part of its debt restructuring agreement[89]. - The company has successfully transferred a total of RMB 1,580 million, including net proceeds from the convertible preferred shares subscription, to Nongtou for loan repayment[89]. - The company anticipates that the unpaid amount for the repurchase loans will be settled in 2024 and/or 2025[90]. - The company completed the issuance of convertible preferred shares on January 4, 2024, raising net proceeds of approximately HKD 1,716,800,000, significantly improving the group's financial position[93]. Operational Efficiency - The inventory turnover days have significantly decreased to approximately 20 days from 235 days as of December 31, 2022, indicating improved operational efficiency[4]. - The group plans to upgrade production facilities in Changchun to reduce production costs and aims to launch various new amino acid products in 2024, which is expected to provide stable cash inflows[13]. - The company is focusing on operational cash flow monitoring and partial recovery of production operations[91]. - Efforts are being made to upgrade production facilities to improve production efficiency and product mix in response to market changes[158]. Workforce Management - The total employee cost from continuing operations for the year was approximately HKD 115.04 million, down from HKD 196.53 million in 2022, indicating a reduction in workforce expenses[15]. - The company has reduced its full-time employees to approximately 2,154 from 3,500 in 2022, reflecting a strategic adjustment in workforce management[15]. - The company emphasizes the importance of employee selection, training, and evaluation to align performance with strategic goals[186]. Corporate Governance - The board emphasizes the importance of corporate governance to enhance confidence among shareholders and stakeholders, focusing on quality food and excellent service[22]. - The board consists of three independent non-executive directors, accounting for over one-third of the board, ensuring compliance with listing rules[29]. - Total remuneration for independent non-executive directors in 2023 amounted to HKD 531,000, compared to HKD 618,000 in 2022, reflecting a decrease of approximately 14.1%[41]. - The company has adopted a board diversity policy to maintain sustainable development and competitive advantage[54]. - The company has established measurable targets for implementing its board diversity policy, which have been met[55]. - The company recognizes the importance of diverse expertise among board members, including accounting, compliance, and risk management[51]. - The company has established a communication policy to maintain ongoing dialogue with shareholders and stakeholders, encouraging their participation and feedback[129]. - The company’s governance committee includes one executive director and two independent non-executive directors, ensuring compliance with corporate governance policies[121]. - The company’s board has adopted a remuneration policy for directors and senior management, linking compensation to performance metrics[120]. Risk Management - The board of directors is responsible for overseeing the overall risk management procedures, integrating risk management into business processes[116]. - The company has established a risk management framework based on the COSO model, identifying key risks and implementing control measures to mitigate them[135]. - The internal audit department has reviewed the effectiveness of the risk management and internal control systems, finding them to be effective and sufficient[136]. - The company has identified significant financial risks, including liquidity issues and the inability to renew bank loans on time, and is actively working to address these[158]. Shareholder Relations - The group maintains communication with shareholders through annual and interim reports, investor meetings, and a dedicated website for updates on business operations and financial performance[110]. - The annual general meeting for 2024 is scheduled for June 20, 2024, to approve the audited consolidated financial statements for 2023 and other matters[115]. - The company has amended its articles of association to allow for electronic or hybrid meetings for shareholder meetings[167]. - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders, with the actual dividend amount to be determined at the board's discretion based on various factors[132]. - The company has adopted a dividend policy, but the board does not recommend any dividend distribution for the current year[173]. - The company aims to maintain a dividend policy of at least 15% of annual profit attributable to equity holders in the foreseeable future[153]. Strategic Initiatives - Export sales, settled in USD, accounted for approximately 25.8% of the group's revenue for the year, compared to none in 2022, reflecting a diversification in revenue sources[6]. - The group is actively participating in industry conferences and maintaining close business relationships with major animal feed manufacturers to strengthen its market position[13]. - The company is focusing on enhancing R&D and diversifying its product portfolio to respond to intense market competition in the lysine market[158]. - The company has established strong long-term relationships with major customers and is actively seeking new clients to mitigate risks associated with customer dependency[187]. - Supply chain management is prioritized, with a commitment to selecting quality suppliers and conducting annual performance reviews[188]. - One of the corporate goals is to enhance shareholder value through sustainable business growth[189]. Compliance and Ethics - The company has implemented a culture of compliance with the highest ethical standards and is committed to adhering to all applicable laws and regulations[184]. - The company has established procedures for handling and disclosing inside information in compliance with securities regulations[165]. - The internal audit team reports directly to the audit committee, ensuring unrestricted access to all business units and resources[140]. - The internal audit department conducts audits at least once every three years for major business units, with newly acquired businesses audited within twelve months[163]. - The company has not identified any significant control failures or weaknesses during the annual review of its internal controls and risk management systems[162].

Financial Performance - The company reported a profit of HKD 4,224,593,000 for the year, compared to a loss of HKD 1,519,565,000 in the previous year[3]. - Revenue from continuing operations was HKD 1,373,938,000, an increase from HKD 1,330,301,000, representing a growth of approximately 3.8%[2]. - The gross profit for the year was HKD 43,637,000, compared to HKD 7,330,000, indicating a significant improvement in profitability[2]. - The company achieved a pre-tax profit from continuing operations of HKD 3,701,045,000, a turnaround from a loss of HKD 1,424,946,000[2]. - The company reported a total non-current asset value of HKD 440,813 in 2023, up from HKD 359,567 in 2022[31]. - The group recorded a profit from continuing operations of HKD 3,743,100,000 for the year, compared to a loss of HKD 1,378,200,000 in 2022, with an EBITDA of approximately HKD 4,695,000,000, up from a loss of HKD 467,300,000 in 2022[157]. - The group reported a net profit attributable to the owners of approximately HKD 4,224,600,000 for the year, a significant recovery from a net loss of approximately HKD 1,443,100,000 in 2022[197]. Revenue and Sales - The revenue from continuing operations in China for 2023 was HKD 1,019,736, significantly up from HKD 12,711 in 2022[31]. - Total revenue from continuing operations reached HKD 1,373,938 in 2023, compared to HKD 12,711 in 2022, indicating a substantial growth[33]. - The amino acids segment generated revenue of HKD 1,156,700,000, a substantial increase from HKD 5,400,000 in 2022, with a sales volume of 185,000 tons[160]. - Revenue from upstream products increased to HKD 217,200,000, a significant rise from HKD 800,000 in 2022, while the gross loss was HKD 14,300,000, compared to a gross profit of HKD 100,000 in the previous year[159]. - Export sales accounted for 25.8% of total revenue, amounting to approximately HKD 354,200,000, primarily driven by the resumption of operations at Changchun Daho[162]. Costs and Expenses - The cost of goods sold for 2023 was HKD 1,330,301, a significant increase from HKD 5,381 in 2022[35]. - The group’s administrative expenses decreased to HKD 62,427,000 in 2023 from HKD 69,899,000 in 2022, indicating a reduction of about 10.6%[105]. - Sales and distribution costs surged by approximately 618.5% to about HKD 66,100,000, representing 4.8% of total revenue, attributed to increased sales volume following the resumption of operations[164]. - Administrative expenses rose by approximately 17.7% to about HKD 304,100,000, primarily due to professional fees related to the sale of Dazheng Sugar and the issuance of convertible preference shares[165]. - Other expenses decreased by approximately 48.4% to about HKD 256,300,000, down from HKD 496,400,000 in 2022, primarily due to the resumption of operations at Changchun Dahe[194]. Cash Flow and Liabilities - The net current liabilities decreased to approximately HKD 7,426,100,000 from HKD 12,818,500,000 in the previous year, showing a reduction of about 42.5%[11]. - The company expects to maintain sufficient working capital to meet its financial obligations over the next 12 months[15]. - Cash and cash equivalents at the end of the reporting period were HKD 75,945,000, up from HKD 34,617,000 in 2022[68]. - The group’s total liabilities decreased to HKD 381,855,000, reflecting a reduction in net liabilities[112]. - As of December 31, 2023, the company had total liabilities of approximately HKD 7,426,100,000, raising significant uncertainty regarding its ability to continue as a going concern[141]. Market Conditions and Future Outlook - The overall economic recovery in China post-COVID-19 has been uneven, with retail sales increasing by 7.2% year-on-year, but consumer confidence remains low due to various internal and external pressures[116]. - The company plans to launch several high-margin amino acid products in 2024 to enhance competitiveness and better meet changing customer demands[119]. - The company anticipates significant improvement in its financial condition and cash flow due to effective resource allocation towards the lysine segment[146]. - The group anticipates launching high-value-added products in 2024 as part of its strategy to simplify production processes and reduce costs[198]. Debt and Financial Support - The company has received a financial support confirmation letter valid until February 29, 2024, ensuring continued operational funding[13]. - The company reported a one-time gain of HKD 4,284,800,000 from a debt restructuring agreement, resulting in a significant financial impact[78]. - The group has agreed to issue convertible bonds worth RMB 120,000,000 (approximately HKD 138,000,000) with a conversion price of HKD 0.10 per share[183]. Production and Inventory - The company's lysine production volume increased significantly by 3,400% to 245,000 tons in the current year, compared to 7,000 tons in 2022[155]. - The average production cost of amino acids decreased by 15.5% by the end of 2023, while the average selling price increased by 11.2% due to a temporary supply shortage in the Chinese market[188]. - The company’s inventory levels remain high due to decreased overseas market demand, impacting feed producers in China[117].

Financial Performance - The company recorded a loss of approximately HKD 95.1 million for the six months ended June 30, 2023, compared to a loss of approximately HKD 829.2 million for the same period in 2022[12]. - Revenue for the six months ended June 30, 2023, was HKD 662,467,000, a decrease from HKD 700,701,000 in the same period of 2022, representing a decline of approximately 5.6%[14]. - The company reported a pre-tax loss of HKD 130,608,000 for the first half of 2023, significantly improved from a loss of HKD 829,241,000 in the prior year[14]. - Total comprehensive income for the period was HKD 394,301,000, compared to a loss of HKD 603,276,000 in the same period last year, indicating a turnaround in performance[14]. - The basic and diluted loss per share for the first half of 2023 was HKD 0.7, an improvement from HKD 8.8 in the same period of 2022[14]. - The company recorded a gross loss of HKD 38.2 million for the first half of 2023, compared to a gross profit of HKD 11.7 million in the previous year[45]. - The net loss for the period was HKD 95.1 million, a decrease from a net loss of HKD 829.2 million in the first half of 2022[45]. - The group recorded a significant increase in sales volume by approximately 285.6%, leading to a consolidated revenue increase of about 325.8% to approximately HKD 662,500,000 for the period[112]. - The net loss narrowed to approximately HKD 95,100,000 compared to HKD 829,200,000 in the previous year, while EBITDA improved to approximately HKD 395,000,000 from a loss of HKD 284,000,000[112]. Debt and Liabilities - As of June 30, 2023, the company's net current liabilities were approximately HKD 12.24 billion, down from approximately HKD 12.82 billion as of December 31, 2022[12]. - The company has a maximum liability amount of RMB 1.66 billion under the Agricultural Bank of China loan agreements, which includes all accrued interest, liabilities, fees, and penalties[4]. - The outstanding principal amount under the Agricultural Bank of China loan agreements is approximately RMB 920 million, excluding loans owed by the Da Cheng Sugar Group[4]. - The company has implemented a debt restructuring plan to improve its financial condition[13]. - The total principal amount owed to Agricultural Bank of China is approximately RMB 1,100,000,000, with the remaining amount owed by a third party, reflecting the company's debt restructuring efforts[30]. - The company has transferred loans totaling approximately RMB 1,184,300,000 to China Export-Import Bank, indicating a strategic move to manage liabilities[30]. - The group has approximately RMB 1.28 billion in outstanding loans as of June 30, 2023, with plans to address these through operational cash flow and potential asset sales[80]. - The group anticipates the overall debt restructuring plan to be completed by the first half of 2024, with the repayment of outstanding amounts expected by the end of 2025[106]. Cash Flow and Liquidity - The net cash used in operating activities for the first half of 2023 was HKD 143,915,000, a significant deterioration from a net cash inflow of HKD 21,218,000 in the same period of 2022[24]. - The cash and cash equivalents increased to HKD 63,679,000 as of June 30, 2023, up from HKD 14,401,000 at the end of the same period in 2022, reflecting improved liquidity[26]. - The net cash flow from financing activities was HKD 169,922,000 for the six months ended June 30, 2023, compared to HKD (30,310,000) in the previous year, showing a positive turnaround in financing[26]. - The company’s cash flow from operating activities has not been detailed in the provided documents, but the overall cash position suggests a focus on improving operational efficiency[26]. Operational Changes and Strategy - The company is in the process of transferring its subsidiaries, Dihao Food and Dihao Crystalline Sugar, to become part of the group excluding the Dachen Sugar Group[1]. - The company is in the process of selling a 47.0% stake in Da Cheng Sugar Industry to improve its overall asset-liability structure, with shareholder approval already obtained[52]. - The restructuring plan for Da Cheng Sugar Industry is progressing smoothly, which will help the company negotiate with local governments regarding property acquisition[53]. - The company aims to streamline its business structure and optimize resource allocation following the sale of Da Cheng Sugar Industry[54]. - The group has suspended most of its production operations to consolidate resources into more efficient segments, with a focus on restoring cash flow from its amino acid business[81]. - The group is actively pursuing debt restructuring, having transferred loans totaling approximately RMB 1.98 billion to Jilin Xinda, marking a significant step in the restructuring process[77]. - The group is exploring various funding options to support the next phase of its debt restructuring plan, including the potential sale of properties in Changchun[75]. Market Conditions and Economic Environment - The domestic GDP for China reached RMB 59.3 trillion for the six months ended June 30, 2023, reflecting a year-on-year growth of 5.5%[50]. - The overall economic environment remains challenging, with China's GDP growth target for 2023 set at 5%, amid pressures from inflation and a high youth unemployment rate of 21.3%[98]. - The company is facing challenges due to the slow recovery of the domestic economy and the livestock industry's incomplete recovery, impacting product prices negatively[51]. - The group anticipates improved performance in its lysine business in the second half of 2023 due to a recovering market demand and rising raw material costs, particularly corn[66]. Research and Development - The group’s research and development team is actively seeking to restructure its product mix to include high-value products in response to market demand changes[73]. - The company plans to continue investing in research and development to improve cost efficiency and product mix, aiming to strengthen its market position[102]. Corporate Governance - The company has implemented corporate governance codes and is providing monthly training to directors to ensure compliance and understanding of responsibilities[85]. - The audit committee has reviewed the group's interim performance and has no disagreements with the accounting principles and policies adopted by the company[199].