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].

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。 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 年 月 日止六個月 2023 6 30 中期業績公告 財務摘要 截至6月30日止六個月 2023年 2022年 變動% （未經審核） （未經審核） 收益（百萬港元） 662.5 155.6 325.8 （毛損）毛利（百萬港元） (38.2) 11.7 不適用 除稅前虧損（百萬港元） (130.6) (829.2) 不適用 ...

Debt Restructuring - The debt restructuring plan includes the transfer of loans from four major banks, with the total principal amount owed to Agricultural Bank of China being approximately RMB 1,400,000,000, of which RMB 1,100,000,000 is owed by the group [3]. - The group plans to repurchase the transferred loans for approximately RMB 1,500,000,000 to RMB 1,600,000,000, with discussions still in early stages and no final agreements reached [5]. - The expected completion date for the full repurchase of transferred loans is between the end of 2023 and the first half of 2024 [7]. - The principal amount owed to China Construction Bank is approximately RMB 1,983,500,000, which has been transferred for about RMB 583,600,000 [4]. - The principal amount owed to the Export-Import Bank is approximately RMB 1,184,300,000, transferred for about RMB 356,000,000 [4]. - The group anticipates that the unpaid amount for the repurchased loans will be settled by the end of 2025 [7]. - The group is exploring various funding possibilities to advance the debt restructuring plan with potential investors expressing interest [5]. Loan Details - The total outstanding principal amount of loans as of January 31, 2023, is approximately RMB 1,326,300,000, with RMB 834,800,000 intended to be financed through ongoing business operations and future cash flows [7]. - The group has a remaining land and building value of approximately RMB 524,700,000, which is mortgaged as collateral for the repurchased loans [5]. - The outstanding amount for the repurchased loans is expected to be settled using proceeds from the sale of related properties [5].

Financial Performance - The company recorded a significant increase in net loss for the year due to the absence of one-time debt restructuring gains from the previous year, resulting in a net loss of approximately 1,519.6 million HKD[10]. - The company's consolidated revenue decreased by approximately 50.1% to around HKD 372.3 million, down from HKD 746.6 million in 2021[30]. - The gross profit also saw a significant decline of about 28.5%, amounting to HKD 34.6 million compared to HKD 48.4 million in the previous year[30]. - Other income and gains decreased by approximately 97.8% to about HKD 30.9 million, primarily due to the absence of a one-time debt restructuring gain recorded in 2021[40]. - Losses from Da Cheng Sugar and a non-wholly owned subsidiary amounted to approximately HKD 212.5 million, leading to a loss attributable to non-controlling interests of about HKD 76.5 million[45]. - The group recorded a net loss of approximately HKD 1,519.6 million for the year, compared to a loss of HKD 435.4 million in 2021, resulting in a net liability of approximately HKD 7,787.1 million[85]. Operational Challenges - The company's production activities were disrupted for two months due to pandemic control measures in Shanghai, affecting overall production and logistics[9]. - The upstream facilities were largely non-operational for most of the year, with a production resumption in December 2022[23]. - The global corn production for the 2022/23 season is estimated at 1,151.4 million tons, a decrease from 1,216 million tons in the previous season, impacting the company's upstream corn refining business[15]. - The revenue from the corn sweetener segment decreased by approximately 50.6% to about HKD 359.6 million (2021: HKD 727.3 million), primarily due to a sales volume drop of about 52.2% to approximately 85,000 tons (2021: 178,000 tons)[50]. Strategic Plans and Restructuring - The amino acid production line successfully resumed operations, and the restructuring plan with Da Cheng Sugar Industry is expected to significantly improve the company's financial situation[11]. - The company anticipates that after completing the restructuring plans, its business operations will gradually return to normal, facilitating strategic cooperation with third-party investors[12]. - The management is focused on debt restructuring plans to significantly improve the company's financial situation[27]. - The company plans to sell approximately 47% of its issued share capital in a subsidiary, which will improve its financial condition post-transaction[24]. - The company announced a proposed restructuring of Da Cheng Sugar, including the issuance of convertible bonds totaling RMB 120 million[37]. Market Conditions - Domestic corn production in China for the 2022/23 season is projected to be approximately 277.2 million tons, with consumption expected to be 286.6 million tons[15]. - The international corn price peaked at 818 cents per bushel in April 2022, influenced by the Ukraine war, but fell to 678.5 cents per bushel by the end of 2022[15]. - China's corn price increased to 2,816 RMB per ton by the end of 2022, compared to 2,734 RMB per ton at the end of 2021, due to high prices and economic slowdown[15]. - The average selling price of sweetener products increased, leading to a gross margin growth of 2.8 percentage points to 9.3% from 6.5% in 2021[30]. Cost Management - Sales and distribution costs decreased by 37.5% to approximately HKD 39.7 million, accounting for about 10.7% of the group's revenue[41]. - Administrative expenses decreased by 12.0% to approximately HKD 328.2 million, mainly due to effective cost control measures[42]. - Other expenses decreased by 14.2% to approximately HKD 545.2 million, primarily due to the release of financial guarantee liabilities[43]. - Financial costs decreased by 8.1% to approximately HKD 726.2 million, attributed to agreements reached with creditors[44]. Governance and Management - The company has established a robust mechanism to ensure strong independence of the board, which is reviewed annually for effectiveness[184]. - The audit committee, composed entirely of independent non-executive directors, held three meetings during the year to oversee financial reporting and risk management[174]. - The company has implemented a clear governance structure, including the establishment of various committees to enhance operational efficiency[196]. - The board meets at least four times a year to discuss overall strategy, operational and financial performance, and other significant matters[160]. Human Resources - The group employed approximately 3,500 full-time employees as of December 31, 2022, down from 3,700 in 2021[117]. - Employee costs, including director remuneration, amounted to approximately HKD 274,033,000 in 2022, compared to HKD 272,259,000 in 2021[117]. - The company emphasizes the importance of human resources management as a source of competitive advantage in a volatile environment[117]. - The company recognizes employee contributions and strives to maintain competitive compensation and career development opportunities[117].

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依賴該等內容而引致的任何損失承擔任何責任。 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 年 月 日止年度 2022 12 31 全年業績公告 財務概要 2022年 2021年 變動% 收益（百萬港元） 372.3 746.6 (50.1) 毛利（百萬港元） 34.6 48.4 (28.5) 本年度虧損（百萬港元） (1,519.6) (435.4) 不適用 本公司擁有人應佔虧損（百萬港元） (1,443.1) (400.8) 不適用 每股基本虧損（港仙） (16.2) (4.5) 不適用 擬派每股末期股息（港仙） — — 不適用 ...

Financial Performance - Revenue for the first half of 2022 was HKD 155.6 million, a decrease of 56.8% compared to HKD 359.9 million in the same period of 2021[4] - Gross profit for the first half of 2022 was HKD 11.7 million, down 23.0% from HKD 15.2 million in the previous year[4] - The company reported a net loss of HKD 829.2 million for the first half of 2022, compared to a profit of HKD 506.3 million in the same period of 2021[4] - The group's consolidated revenue decreased by approximately 56.8% to around HKD 155.6 million, down from HKD 359.9 million in 2021[28] - The group recorded a net loss of approximately HKD 829.2 million, compared to a profit of HKD 506.3 million in 2021[30] - The total comprehensive loss for the period was HKD 603,276,000, compared to a total comprehensive income of HKD 446,225,000 for the same period in 2021[104] - Basic and diluted loss per share for the period was HKD 8.8, compared to earnings of HKD 5.7 and HKD 3.9 per share in the same period of 2021[104] - The company reported a loss before tax of HKD 829,241,000 for the six months ended June 30, 2022, compared to a profit of HKD 506,275,000 in the same period of 2021[104] Operational Challenges - The company’s amino acid production facilities remain idle due to upstream supply chain issues, impacting cost-effectiveness[11] - The Shanghai sweetener production facility was temporarily shut down for about two months starting in April 2022 due to COVID-19 lockdowns[11] - The overall economic environment in China remains challenging, with logistics disruptions and rising costs impacting production and business activities[10] - The company anticipates ongoing challenges in the operating environment due to high commodity prices and energy costs, alongside geopolitical uncertainties[26] - The management expects the impact of COVID-19 to continue affecting the operating environment, leading to uncertainty in business operations[83] - The company has gradually resumed operations at its Shanghai production facilities since June 2022 after the lifting of lockdown measures[85] Debt and Financial Restructuring - The company is progressing with its debt restructuring plan, with expectations to complete part of it by the end of the year[15] - The company is actively negotiating with local authorities regarding compensation for land acquisition, which will provide necessary funds for debt repayment and cash flow needs[12] - The company is actively negotiating with banks and creditors regarding a debt restructuring plan to improve its financial situation[130] - The group is actively negotiating a debt restructuring plan with banks and creditors to improve its financial condition, with an expected completion by the end of 2022[134] - The company has received a preservation order from the Shenyang Intermediate Court to secure bank balances equivalent to the outstanding principal and interest owed to Bank of China Jinzhou Branch, totaling RMB 55,518,460.06[91] Market Conditions and Commodity Prices - High corn prices are expected to continue affecting the company's operational efficiency and business performance[14] - International corn prices reached $8.18 per bushel in April 2022, equivalent to RMB 2,129 per ton, and were $7.44 per bushel (RMB 1,962 per ton) by June 30, 2022[20] - China's domestic corn price increased to RMB 2,827 per ton by June 30, 2022, compared to RMB 2,790 per ton a year earlier[20] - The company anticipates significant improvement in its financial condition following the completion of the debt restructuring plan[134] Employee and Governance - As of June 30, 2022, the group employed approximately 3,600 full-time employees, a decrease from 3,700 as of December 31, 2021[64] - Employee benefits expenditure (excluding directors' remuneration) was approximately HKD 116.9 million for the period, down from HKD 153.2 million in 2021[64] - The board did not recommend any dividend distribution for the current period, consistent with the previous period[66] - The company has adhered to all corporate governance codes as outlined in the listing rules during the reporting period[74] Future Plans and Investments - The company plans to maintain competitiveness through internal R&D and diversification of product offerings while implementing a debt restructuring plan[62] - The company is exploring the potential for restructuring its product portfolio to include high-value products in response to market demand changes[24] - The company plans to relocate production facilities to the Xinglongshan area, with adjustments made to the relocation plan due to market conditions and funding availability[86] - The company aims to utilize part of the proceeds from the subscription to partially restore operations at its Xinglongshan plant, which is expected to generate operational cash inflow[87] Financial Position and Liabilities - The company's net liabilities as of June 30, 2022, were HKD (7,304,101,000), an increase from HKD (6,700,825,000) as of December 31, 2021[108] - The company's current liabilities increased to approximately HKD 12.63 billion as of June 30, 2022, compared to HKD 11.44 billion as of December 31, 2021[129] - The total outstanding principal amount for the loans under the Dazheng Biochemical Export-Import Bank Jilin Branch agreement is approximately RMB 648,000,000, along with accrued interest[94] - The total outstanding principal amount owed by the group to the Export-Import Bank is approximately RMB 1,200,000,000, including unpaid interest[95]

Financial Performance - Revenue for 2021 was HKD 746.6 million, a decrease of 12.1% from HKD 848.9 million in 2020[6] - Gross profit for 2021 was HKD 48.4 million, down 34.7% from HKD 74.1 million in 2020[6] - The company reported a significant annual loss of HKD 435.4 million, a reduction of 82.1% compared to a loss of HKD 2,433.3 million in 2020[12] - EBITDA for the year was approximately HKD 783.6 million[12] - The company's consolidated revenue decreased by 12.1% to approximately HKD 746.6 million, down from HKD 848.9 million in the previous year[33] - The gross profit for the year fell by approximately 34.7% to about HKD 48.4 million, with a gross margin decline of 2.2 percentage points to 6.5%[33] - The company recorded a significant reduction in net loss to approximately HKD 435.4 million, compared to HKD 2,433.3 million in the previous year, and EBITDA improved to about HKD 783.6 million from a loss of HKD 1,229.2 million[34] Production and Operations - The lysine production line remained idle throughout the year due to cash flow constraints, despite rising global lysine prices[16] - The sweetener business experienced a decline in gross profit and margin due to insufficient price increases to cover rising raw material and energy costs[16] - The company suspended most production facilities to avoid cash flow losses amid rising raw material costs and supply chain disruptions[12] - The group plans to resume some upstream production lines at the Xinglongshan plant within the year to improve cash flow and support downstream recovery[18] - The upstream business revenue plummeted by approximately 99.7% to about HKD 800,000, with no sales recorded for corn starch, which previously generated HKD 189.1 million[37] - The company plans to continue observing market conditions and adopt a cautious approach before restarting its biochemicals business, focusing on high-value products[32] - The company aims to maintain competitiveness through internal R&D, debt restructuring, and forming strategic alliances for sustainable development[77] - The company will focus on relocating production facilities and adjusting product mix to respond to market changes while improving operational efficiency through continuous R&D[77] Market Conditions - In 2021, China's GDP grew by 8.1%, but the growth rate showed a quarterly decline, indicating economic downward pressure[18] - The Omicron variant impacted business activities in multiple regions of China in Q1 2022, leading to challenges in the operating environment[18] - The anticipated high corn prices in 2022 are expected to continue posing challenges to the company's operating environment[32] - The operating environment remains challenging due to high raw material costs and geopolitical uncertainties affecting business operations[18] Debt and Financial Management - The company continued to focus on debt restructuring discussions with creditors to return to a healthy development track[12] - The group expects further progress on its debt restructuring plan by the end of 2022, which is crucial for restoring financial stability and growth[20] - The company aims to reduce its financial burden by expediting the collection of properties in Changchun and actively negotiating with banks to advance its debt restructuring plan[36] - The company issued convertible bonds totaling HKD 1,086,279,565, convertible into 4,722,954,631 shares at an initial conversion price of HKD 0.23 per share[54] - As of December 31, 2021, total borrowings decreased by approximately HKD 608,300,000 to about HKD 7,501,300,000, while cash and bank balances decreased by approximately HKD 160,900,000 to about HKD 22,300,000[52] Employee and Governance - The group employed approximately 3,700 full-time employees as of December 31, 2021, down from 4,000 in 2020, highlighting a focus on human resource management as a competitive advantage[79] - Employee compensation includes discretionary bonuses based on performance, aligning employee performance with the company's strategy[79] - The company recognizes the value of employee contributions and strives to maintain competitive compensation and career development opportunities[79] - The board consists of six directors, including two executive directors, one non-executive director, and three independent non-executive directors[97] - The company has achieved a diversity policy for its board members, focusing on gender, education, and professional qualifications[108] Risk Management - The company employs a "three lines of defense" approach to manage operational risks, integrating risk management into business processes[173] - The management is responsible for identifying, understanding, and managing risks to minimize, transfer, and avoid them[173] - Financial risks include liquidity risk due to production suspension, with measures such as property seizure to improve cash flow and attracting potential investors for partial recovery[178] - The company faced compliance risks related to loan agreements, with creditors seeking court orders for settlement, but reached agreements and sought legal advice[178] Corporate Governance - The board of directors is responsible for ensuring compliance with corporate governance policies and practices, having reviewed and monitored adherence to relevant regulations[146] - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with the relevant listing rules[92] - The audit committee, composed of independent non-executive directors, reviews the financial reporting process, risk management, and internal controls, holding three meetings during the year[136] - The company has established various communication channels with shareholders, including annual and interim reports published on the stock exchange and the company website[156] Environmental, Social, and Governance (ESG) - The company has committed to publishing its Environmental, Social, and Governance (ESG) report annually on its website and the stock exchange[186]

Financial Performance - Revenue for the first half of 2021 was HKD 359.9 million, a decrease of 24.9% compared to HKD 479.1 million in the same period of 2020[4] - Gross profit for the first half of 2021 was HKD 15.2 million, down 62.8% from HKD 40.9 million in the first half of 2020[4] - The company recorded a net profit of over HKD 500 million during the first half of 2021, significantly improving from a loss of HKD 902.8 million in the same period of 2020[10] - The company's overall revenue and gross profit decreased by approximately 24.9% and 62.8%, respectively, to about HKD 359.9 million and HKD 15.2 million during the period[29] - The company achieved a net profit of approximately HKD 506.3 million, a significant turnaround from a net loss of HKD 902.8 million in 2020[30] - The company reported a profit of approximately HKD 506.3 million for the six months ended June 30, 2021, compared to a loss of approximately HKD 902.8 million for the same period in 2020[138] - Total comprehensive income for the period was HKD 446,225,000, compared to a loss of HKD 857,557,000 in the prior year, marking a substantial improvement[115] Debt and Financial Restructuring - The company successfully completed the first phase of its debt restructuring plan in the first quarter of 2021, aiming to improve its overall financial condition[11] - The company recorded a one-time debt restructuring gain of approximately HKD 1.325 billion from agreements completed on March 31, 2021[30] - The company is negotiating with creditors to alleviate interest burdens and lay the foundation for gradual production recovery[12] - The company is actively negotiating debt restructuring plans with banks and creditors to improve its financial condition[139] - The group expects to complete the debt restructuring plan for loans transferred from Agricultural Bank of China and Construction Bank by the end of 2021, pending approvals from relevant creditors and local government agencies[142] Production and Operations - The company continued to suspend most of its production operations in the first half of 2021 to reduce cash outflow and protect financial resources[10] - The company anticipates that restoring production will require significant capital, leading to the continued suspension of most production facilities during the review period[14] - The company has suspended operations at several plants to reduce cash outflow and ensure financial resources are sufficient until market conditions improve[21] - The company plans to focus on improving operational efficiency and financial conditions by streamlining production processes and seeking partial resumption of operations[30] - The company plans to relocate production facilities to Xinglongshan, funded by internal resources and land compensation[65] - The company has adjusted its relocation plans for production facilities due to the challenging economic environment and ongoing pandemic effects[94] Market Conditions and Economic Environment - The overall economic environment remains uncertain, with the company focusing on resolving its heavy debt burden to facilitate business recovery[11] - The company continues to face challenges in the operating environment, with the COVID-19 pandemic impacting global economic conditions[20] - China's GDP grew by 7.9% year-on-year in Q2 2021, driven by retail sales and industrial production recovery[20] - The demand for corn remained high domestically, but the price increase of upstream corn refining products and downstream lysine products was insufficient to cover raw material cost increases[14] Revenue Segmentation - The amino acid segment recorded revenue of approximately HKD 1,100,000, a significant decrease from HKD 9,300,000 in 2020, with sales volume dropping to about 100 tons from 2,000 tons[33] - The corn sweetener segment's revenue increased by approximately 55.4% to about HKD 355,600,000, driven by a sales volume growth of about 20.3% to approximately 89,000 tons[34] - The bio-chemical alcohol segment's revenue rose by 84.6% to approximately HKD 2,400,000, with a gross profit of about HKD 1,500,000 and a gross margin of 62.5%[36] Financial Position and Liabilities - As of June 30, 2021, total interest-bearing bank and other borrowings decreased by approximately HKD 692,600,000 to about HKD 7,417,000,000[48] - The net debt position decreased to approximately HKD 7,363,000,000 as of June 30, 2021, down from HKD 7,926,400,000 at the end of 2020[48] - The company has outstanding loans totaling approximately RMB 648 million and RMB 1.8 billion from the Export-Import Bank of China and China Construction Bank, respectively, which remain unpaid[101][102] - The company has unpaid loans of approximately RMB 920 million and RMB 740 million from Agricultural Bank of China and China Construction Bank, respectively, which have become immediately due[106] Human Resources and Governance - The group employed approximately 3,800 full-time employees as of June 30, 2021, down from 4,000 on December 31, 2020[68] - The group recognizes the importance of human resources management as a competitive advantage in a volatile environment[68] - The company's governance committees, including the Remuneration Committee and Nomination Committee, are actively involved in reviewing policies and performance metrics for directors and senior management[86][89] Other Financial Metrics - Selling and distribution costs decreased by about 40.0% to approximately HKD 32,400,000, representing about 9.0% of total revenue[40] - Administrative expenses reduced by 2.9% to approximately HKD 175,100,000, accounting for 48.6% of total revenue[41] - Financial costs increased by 10.1% to approximately HKD 396,600,000, mainly due to increased interest on bank and other borrowings[44] - The company’s liquidity ratio and quick ratio remained at 0.1 as of June 30, 2021[58] - The company’s trade receivables turnover days increased to approximately 73 days as of June 30, 2021, compared to 58 days at the end of 2020[57]

Financial Performance - The company's revenue for 2020 was HKD 849 million, a decrease of 81.4% compared to HKD 4,561 million in 2019[5]. - Gross profit for 2020 was HKD 74 million, down 63.7% from HKD 204 million in 2019[5]. - The net loss for the year was HKD 2,433 million, significantly higher than the loss of HKD 1,116 million in 2019[5]. - The group's consolidated revenue decreased significantly by 81.4% to approximately HKD 848,900,000 compared to HKD 4,561,400,000 in 2019[37]. - Gross profit for the year fell by about 63.6% to approximately HKD 74,100,000, down from HKD 203,500,000 in 2019[37]. - The group recorded a net loss of approximately HKD 2,433,300,000 for the year, which includes a one-time loss of about HKD 728,200,000 related to convertible bonds[38]. - The upstream business revenue plummeted by approximately 90.5% to about HKD 248,600,000, down from HKD 2,626,300,000 in 2019[40]. - Amino acid segment revenue decreased sharply to approximately HKD 36.6 million, down 96.3% from HKD 991.6 million in 2019, with sales volume dropping to 7,000 tons from 186,000 tons[42]. - The gross profit for the amino acid segment was approximately HKD 1.4 million, a significant improvement from a gross loss of HKD 53.2 million in 2019, resulting in a gross margin of 3.8%[42]. - Corn sweetener segment revenue fell by 39.2% to approximately HKD 558.1 million, down from HKD 918.4 million in 2019, with sales volume decreasing by 41.8% to about 174,000 tons[45][46]. - The gross profit for the corn sweetener segment decreased by 54.3% to HKD 52 million, with a gross margin of approximately 9.3%, down from 12.4% in 2019[46]. - Bio-chemical alcohol segment revenue dropped 77.7% to approximately HKD 5.6 million, down from HKD 25.1 million in 2019, with a gross profit of HKD 2.4 million and a gross margin of 42.9%[47]. Debt and Financial Management - The company is actively restructuring its debt to alleviate financial pressure and improve cash flow[10]. - The company aims to resolve heavy debt issues and has entered into a repurchase agreement to settle outstanding loans, marking a significant milestone in improving its financial situation[18]. - The company plans to continue seeking additional funding sources to strengthen its overall financial position[12]. - Financial costs related to financial guarantee contracts were approximately HKD 153.5 million for the year, up from HKD 110.8 million in 2019[30]. - The group recorded a net loss of approximately HKD 2,433,300,000 for the year, up from HKD 1,116,300,000 in 2019, resulting in a net debt of approximately HKD 6,017,100,000[67]. - The capital debt ratio increased to 387.5% from 232.4% in 2019, attributed to the net loss and increased borrowings[67]. - As of December 31, 2020, total borrowings increased by approximately HKD 481.8 million to about HKD 8.1 billion, with net borrowings rising to approximately HKD 7.9 billion[59]. - The repayment ratio for interest-bearing and other borrowings within one year and from the second to the fifth year was 97.7% and 2.3%, respectively, compared to 73.2% and 26.8% in 2019[60]. - The group is actively negotiating with banks and creditors to advance debt restructuring plans[38]. - The company is actively negotiating with local governments and creditors to achieve a debt restructuring plan due to the transfer of most bank loans under a debt restructuring plan[173]. Market Conditions and Challenges - The company faced significant challenges due to the COVID-19 pandemic, impacting logistics and consumer demand[10]. - The anticipated corn deficit in China for 2021 is approximately 20 million tons, driven by increased consumption and reduced supply from major exporting countries[23]. - The outbreak of African swine fever has led to a reduction of at least 40% in China's pig population compared to pre-2018 levels, significantly impacting the feed market[25]. - The company anticipates continued challenges in 2021 due to high corn prices and the ongoing impact of COVID-19 on the global economy[29]. - The operational environment has been severely impacted by the COVID-19 pandemic, leading the company to streamline operations to ensure liquidity and closely monitor market changes[175]. Production and Operations - The company suspended all upstream product production starting from the second quarter of 2020 to reduce cash outflow due to high corn procurement costs and weak demand[14]. - The company has suspended production at several facilities to reduce cash outflows and ensure financial resources are sufficient until market conditions improve[22]. - The company will closely monitor market developments and assess the feasibility of resuming upstream corn processing and amino acid production in the third quarter of 2021[16]. - The company plans to upgrade production technology and product mix to address market changes due to aging production facilities[175]. - The company is focusing on research and development to diversify its product portfolio in response to the ongoing impact of African swine fever in China[175]. Corporate Governance - The management team emphasized the importance of maintaining high corporate governance standards to boost stakeholder confidence[92]. - The board of directors has adopted a diversity policy to ensure a balanced representation across various demographics[98]. - The company is committed to evaluating the independence of its non-executive directors annually to uphold governance standards[97]. - The board has established measurable diversity targets, including a specified percentage of female members and independent non-executive directors[102]. - The company has implemented measures to ensure the board receives all necessary information to effectively perform its duties[105]. - The audit committee's responsibilities include reviewing the company's annual and interim financial statements and ensuring compliance with accounting standards[136]. - The company has adopted a written policy for the nomination of new directors, considering factors such as time commitment and contribution to board diversity[139]. - The board has established various committees, including the audit committee, nomination committee, remuneration committee, and corporate governance committee, to ensure effective governance[132]. Employee Management - The company recognizes the importance of human resources management as a source of competitive advantage and emphasizes employee training and performance evaluation[79]. - As of December 31, 2020, the company employed approximately 4,000 full-time employees, a decrease from 4,300 in 2019[79]. Environmental and Risk Management - The company aims to provide stable and sustainable returns to shareholders through a progressive dividend policy[160]. - The company is committed to minimizing environmental impacts and ensuring public safety and health as part of its risk management strategy[171]. - The company has established a strong and independent review and inquiry process to enhance its strategic and operational effectiveness[171]. - The internal audit department reviewed the effectiveness of the company's risk management and internal control systems, identifying weaknesses and suggesting improvements[175].