Core Viewpoint - The company has successfully awarded an EPC contract for a boiler renovation project, which is essential for enhancing operational efficiency and competitiveness in the market [1][2] Group 1: Project Details - The EPC contract was signed on July 31, 2025, with a maximum cost of RMB 129.1 million, including potential early completion bonuses [1] - The boiler renovation project includes the construction of a new 150 tons/hour ultra-high temperature and ultra-high pressure circulating fluidized bed boiler, along with various supporting systems [1] - Additional components of the project involve the establishment of flue gas dust removal and denitrification systems, a new seawater desalination system, and upgrades to existing automation and control systems [1] Group 2: Strategic Importance - The renovation is necessary due to the outdated boiler facilities that have been in use for over 20 years, which limits the company's cost-effectiveness and sustainability [2] - The company primarily engages in the production and sale of corn refining products and biochemical products, and lacks the qualifications and capabilities for similar large-scale renovation projects [2] - By outsourcing the boiler renovation project to a qualified EPC contractor, the company aims to reduce administrative costs and select high-quality suppliers through competitive bidding [2]

00809 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，概不對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 * 有關以公開招標方式訂立的EPC合約的須予披露交易 以公開招標方式訂立EPC合約 茲提述本公司日期為二零二五年五月二十三日有關就EPC合約開始公開招標的公告。 以公開招標方式訂立EPC合約 茲提述本公司日期為二零二五年五月二十三日有關就EPC合約開始公開招標的公告。 誠如本公司日期為二零二五年五月二十三日的公告所披露，長春大合已就EPC合約發出招 標公告邀請投標者，該招標已於二零二五年五月二十六日開始。由於並無足夠的投標者 參與該招標，長春大合已分別於二零二五年六月三日（已於二零二五年六月二十三日截 止，無中標者）及二零二五年六月二十四日發出另外兩份招標公告，邀請投標者競投EPC 合約。於日期為二零二五年六月二十四日的招標公告中，為激勵承包商參加招標，已加 入提供的獎金的條款以獎勵提前竣工鍋爐 ...

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，概不對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。 00809 涉及根據特別授權發行代價股份之 供應商債務重組安排 延遲寄發通函 茲提述大成生化科技集團有限公司（「本公司」）日期為二零二五年七月八日之公告（「該公 告」），內容有關涉及根據特別授權發行代價股份之供應商債務重組安排。除文義另有所 指外，本公告所用詞彙與該公告所界定者具有相同涵義。 由於需要額外時間編製及落實將納入通函（「通函」）的若干資料，誠如該公告所述，其應 載有（其中包括）(i)股份購買協議及其項下擬進行交易（包括重新收購及授出發行代價股份 之特別授權）之進一步資料；(ii)股東特別大會通告；及(iii)上市規則規定須予披露之其他 資料，預期通函寄發予股東的日期將延遲至二零二五年八月二十二日或之前。 承董事會命 大成生化科技集團有限公司 主席 王成 GLOBAL BIO-CHEM TECHNOLOGY GROUP COMPANY LIMITED * 香港，二零二五年七月三十一日 於本公告 ...

Group 1 - Dachen Biotech (00809.HK) announced a debt restructuring arrangement with suppliers, establishing a partnership to facilitate this process [1] - The debt-to-equity swap agreement involves suppliers converting a total debt of RMB 461.1 million into equity, resulting in approximately 28.98% ownership in Century Dachen [1][2] - The completion of the debt-to-equity swap is contingent upon obtaining all necessary regulatory approvals, including those from the Ministry of Commerce [2] Group 2 - The debt-to-equity swap agreement includes a lock-up provision, preventing suppliers from selling or encumbering their shares except for the purpose of the debt restructuring [2] - A discount of no less than 30% is anticipated on the debt, with expected net gains of at least HKD 190 million from the debt restructuring [3] - Following the completion of the equity swap, Century Dachen will remain a wholly-owned subsidiary of the company, with no overall impact on the company's equity in Century Dachen [3]

Core Viewpoint - The company has decided to restart the boiler renovation project at Changchun Dahe and will select a suitable EPC contractor through a public bidding process to carry out the renovation work [1][2]. Group 1: Project Details - The boiler renovation project at Changchun Dahe will be executed under an EPC contract, which includes project design, procurement, and construction responsibilities for the selected contractor [1]. - The bidding announcement for the EPC contract was issued on May 23, 2025, with the bidding period starting on May 26, 2025, and concluding on June 17, 2025 [1]. Group 2: Financial and Operational Context - Changchun Dahe has maintained normal operations throughout 2024, contributing significantly to the company's revenue [2]. - The existing boiler facilities at Changchun Dahe have been in use for over 20 years, utilizing medium/low-pressure boilers, which are less cost-effective compared to the high-temperature/high-pressure options widely used in China [2]. - The renovation aims to upgrade the boiler systems to reduce costs and enhance market competitiveness, aligning with the company's overall sustainability goals [2].

Core Viewpoint - The company, Dachen Biochemical Technology (00809), is actively engaging in strategic partnerships to enhance its capabilities in synthetic biology, particularly in the context of the Changchun Economic and Technological Development Zone initiative [1][2]. Group 1: Strategic Partnerships - Dachen Biochemical Technology's subsidiary, Changchun Hongcheng Biochemical Materials Technology Development Co., Ltd., has entered into a strategic cooperation framework agreement with Hefei Hechen Biotechnology Co., Ltd. to leverage their respective strengths in synthetic biology [2]. - The collaboration aims to focus on the industrial application of synthetic biology in the amino acid sector, combining Dachen's expertise in process optimization and cost control with Hefei Hechen's strengths in gene design and metabolic pathway optimization [2]. Group 2: Industry Development Initiatives - The Changchun Economic and Technological Development Zone is establishing a synthetic biology industry innovation development pilot area, with the goal of promoting high-quality industrial development in Northeast China [1]. - A key aspect of the initiative includes the signing of the Changxing Oasis Sub-Fund, which has been established with a capital of RMB 50 million, focusing on applications of synthetic biology in biomanufacturing, agricultural technology, and green energy [1]. Group 3: Research and Development Facilities - The strategic cooperation will utilize the research center and pilot facilities located at the company's Xinglongshan production base, which includes approximately 10,000 square meters of factory space and four research and development centers [2]. - The pilot platform's inauguration during the conference signifies a crucial step in bridging the gap between technological achievements and industrial application, particularly in biobased chemicals and medical materials [2]. Group 4: Current Operations Status - As of the announcement date, the company's Xinglongshan production base remains suspended from operations [3].

Group 1 - The core viewpoint of the news is that Dachen Biochemical Technology (00809.HK) has entered into a strategic cooperation framework agreement with Hefei Hechen Biotechnology Co., focusing on the development of synthetic biology applications in the amino acid sector [1][2] - The strategic cooperation aims to leverage the strengths of both parties in synthetic biology, combining Dachen's experience in technology scaling, process optimization, and cost control with Hefei Hechen's expertise in gene design and metabolic pathway optimization [1][2] - A pilot platform for synthetic biology will be established at Dachen's Xinglongshan production base, which includes approximately 10,000 square meters of research and development facilities, supporting the industrialization of bio-based chemicals and medical materials [2] Group 2 - The unveiling of the pilot platform during the conference signifies a crucial step in bridging the gap between technological achievements and industrial application, facilitating breakthroughs in the bio-based chemical and medical materials sectors [2] - Hefei Hechen is focused on integrating synthetic biology with advanced delivery technologies, developing bio-based chemicals, specialty amino acids, and high-value active ingredients, as well as offering solutions for beauty products and functional food applications [2]

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 | --- | --- | --- | |--------------------------|-------|-------------------------------------------------------------------------------------------------- ...

Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income [Financial Performance of Continuing Operations](index=1&type=section&id=Financial%20Performance%20of%20Continuing%20Operations) For the six months ended June 30, 2024, the company's continuing operations saw significant revenue growth, but both loss before tax and loss for the period expanded, primarily due to other income and gains, finance costs, and derecognition of a subsidiary's gain Continuing Operations Profit or Loss Overview | Indicator | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) (Restated) | | :--------------- | :-------------- | :----------------------- | | Revenue | 898,541 | 468,806 | | Gross Profit (Loss) | 66,025 | (58,214) | | Other Income and Gains | 124,677 | 22,202 | | Gain on Derecognition of a Subsidiary | — | 588,747 | | Finance Costs | (124,231) | (340,778) | | Loss Before Tax | (157,743) | (60,290) | | Loss for the Period | (157,743) | (29,759) | [Other Comprehensive (Loss) Income](index=2&type=section&id=Other%20Comprehensive%20(Loss)%20Income) In the first half of 2024, the company recorded other comprehensive loss, mainly due to exchange differences on translation of financial statements of operations outside Hong Kong, a stark contrast to the comprehensive income in the same period last year Other Comprehensive (Loss) Income | Indicator | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) (Restated) | | :--------------------------------- | :-------------- | :----------------------- | | Exchange differences on translation of financial statements of operations outside Hong Kong | (229,443) | 402,327 | | Reclassification adjustment of exchange reserve upon derecognition of a subsidiary | — | (79,632) | | Revaluation surplus on properties, net | — | 95,475 | | Income tax effect | — | (23,869) | | Other comprehensive (loss) income for the period, net of tax | (229,443) | 394,301 | | Total comprehensive (loss) income for the period | (387,186) | 299,179 | [Loss Attributable and Earnings Per Share](index=3&type=section&id=Loss%20Attributable%20and%20Earnings%20Per%20Share) Loss attributable to owners of the Company for the period was HK$157.7 million, an increase from the prior year, with basic and diluted loss per share at 1.8 HK Cents, primarily from continuing operations Loss Attributable and Earnings Per Share | Indicator | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) (Restated) | | :--------------------------------- | :-------------- | :----------------------- | | Loss attributable to: owners of the Company | (157,743) | (64,904) | | Loss attributable to: non-controlling interests | — | (30,218) | | (Loss) profit attributable to owners of the Company arising from: continuing operations | (157,743) | 459 | | (Loss) profit attributable to owners of the Company arising from: discontinued operations | — | (65,363) | | Basic and diluted (loss) earnings per share — continuing operations (HK Cents) | (1.8) | — | | Basic and diluted (loss) earnings per share — discontinued operations (HK Cents) | — | (0.7) | Condensed Consolidated Statement of Financial Position [Asset and Liability Position](index=4&type=section&id=Asset%20and%20Liability%20Position) As of June 30, 2024, the company's non-current assets slightly decreased, current assets reduced, but net current liabilities and net liabilities significantly improved, mainly due to debt restructuring and the issuance of convertible preference shares Asset and Liability Position Key Data | Indicator | June 30, 2024 (HK$ Thousand) | December 31, 2023 (HK$ Thousand) | | :--------------- | :--------------------- | :---------------------- | | Non-current assets | 4,035,098 | 4,239,567 | | Current assets | 828,985 | 969,529 | | Current liabilities | 6,670,735 | 8,395,603 | | Net current liabilities | (5,841,750) | (7,426,074) | | Total assets less current liabilities | (1,806,652) | (3,186,507) | | Non-current liabilities | 890,665 | 850,399 | | Net liabilities | (2,697,317) | (4,036,906) | | Share capital | 890,741 | 890,741 | | Convertible preference shares | 1,726,775 | — | | Reserves | (5,314,833) | (4,927,647) | | Total deficit | (2,697,317) | (4,036,906) | Notes to the Condensed Consolidated Financial Statements [1. Company Information](index=6&type=section&id=1.%20Company%20Information) The Company is an investment holding company incorporated in the Cayman Islands, primarily engaged in the production and sale of corn refining products and corn-based biochemical products, with no significant change in business nature during the period - The Company is primarily engaged in the production and sale of corn refining products and corn-based biochemical products, with no significant change in the nature of its principal business during the period[8](index=8&type=chunk) [2. Basis of Preparation and Accounting Policies](index=6&type=section&id=2.%20Basis%20of%20Preparation%20and%20Accounting%20Policies) The condensed consolidated financial statements are prepared in accordance with HKAS 34 and on a going concern basis; despite facing losses and net liabilities, the company has taken measures including debt restructuring and financial support from the controlling shareholder to improve its financial position [2.1 Basis of Preparation](index=6&type=section&id=2.1%20Basis%20of%20Preparation) The condensed consolidated financial statements are prepared in accordance with Appendix D2 of the Listing Rules of The Stock Exchange of Hong Kong Limited and HKAS 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants - The condensed consolidated financial statements have been prepared in accordance with the applicable disclosure requirements of Appendix D2 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants[9](index=9&type=chunk) [2.2 Going Concern](index=6&type=section&id=2.2%20Going%20Concern) Despite the Group's continuing losses and net liabilities, the Board considers the going concern basis appropriate for financial statement preparation, citing debt restructuring, controlling shareholder support, improved operating cash flow, and convertible preference share issuance - The Group recorded a **loss of approximately HK$157.7 million** for the period, and **net current liabilities of approximately HK$5.84 billion** and **net liabilities of approximately HK$2.70 billion** as of June 30, 2024[10](index=10&type=chunk) - The Company has transferred a total of **RMB1.58 billion** to Agribusiness Development Fund (ADF) for full repayment of the transferred loans, fulfilling all repayment obligations under the debt restructuring agreement[11](index=11&type=chunk) - The Group has obtained a confirmation letter from its controlling shareholder, ADF, confirming its continued financial support to the Group on a going concern basis for 24 months from the date of the confirmation letter[14](index=14&type=chunk) - The **net proceeds of approximately HK$1.72 billion** from the convertible preference shares subscription were fully utilized in January 2024 to repay the transferred loans, significantly improving the Group's financial position[16](index=16&type=chunk) [2.3 Changes in Accounting Policies and Disclosures](index=10&type=section&id=2.3%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) The accounting policies adopted in the condensed consolidated financial statements for the period are consistent with the prior year, with no significant impact on accounting policies or reported amounts from new/revised HKFRSs - The Group's accounting policies and the amounts reported for the current and prior years have not been significantly affected by the adoption of new/revised Hong Kong Financial Reporting Standards[18](index=18&type=chunk) [3. Operating Segment Information](index=10&type=section&id=3.%20Operating%20Segment%20Information) The Group has four reportable operating segments: Upstream Products, Amino Acids, Corn Sweeteners, and Biochemical Alcohol; Amino Acids segment revenue grew significantly, while Upstream Products segment loss narrowed, and both Corn Sweeteners and Biochemical Alcohol segments had no sales, with regional revenues in China and Asia, Americas, and other regions showing substantial growth - The Group has **four reportable operating segments**: Upstream Products, Amino Acids, Corn Sweeteners, and Biochemical Alcohol[19](index=19&type=chunk) - The disposed Dacheng Sugar Group was re-presented as a discontinued operation in the prior period's condensed consolidated financial statements, but the corn sweetener business operated by Dihao Company remains classified under continuing operations[20](index=20&type=chunk) Segment Revenue and Results (First Half 2024) | Segment | Revenue (HK$ Thousand) | Segment Results (HK$ Thousand) | | :----------- | :------------ | :---------------- | | Upstream Products | 140,093 | (83,780) | | Amino Acids | 758,448 | (26,583) | | Corn Sweeteners | — | (18,274) | | Biochemical Alcohol | — | (4,018) | | **Total** | **898,541** | **(132,655)** | Revenue Information by Customer Location | Region | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) (Restated) | | :------------------- | :-------------- | :----------------------- | | China | 591,521 | 398,521 | | Asia, Americas and Other Regions | 307,020 | 70,285 | | **Total** | **898,541** | **468,806** | [4. Revenue, Other Income and Gains](index=15&type=section&id=4.%20Revenue%2C%20Other%20Income%20and%20Gains) Revenue from continuing operations significantly increased to HK$898.5 million for the period, with other income and gains also rising substantially, primarily driven by government grants and fair value gains on financial assets Revenue, Other Income and Gains | Indicator | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) (Restated) | | :--------------- | :-------------- | :----------------------- | | Sales of goods | 898,541 | 468,806 | | Other income and gains | 124,677 | 22,202 | | Of which: Government grants | 67,391 | — | | Of which: Fair value gains on financial assets at fair value through profit or loss | 28,154 | — | [5. Finance Costs](index=16&type=section&id=5.%20Finance%20Costs) Finance costs for the period significantly decreased to HK$124.2 million, mainly due to a substantial reduction in interest on bank and other borrowings Finance Costs Details | Indicator | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) (Restated) | | :--------------- | :-------------- | :----------------------- | | Interest on bank and other borrowings | 28,860 | 223,824 | | Interest on financial guarantee provided by ADF | 9,511 | 9,731 | | Interest on trade payables | 32,533 | 54,215 | | Imputed interest on convertible bonds | 53,318 | 53,000 | | Interest on lease liabilities | 9 | 8 | | **Total** | **124,231** | **340,778** | [6. Loss Before Tax from Continuing Operations](index=16&type=section&id=6.%20Loss%20Before%20Tax%20from%20Continuing%20Operations) Loss before tax from continuing operations for the period was HK$157.7 million, an increase from the prior year, with employee benefit expenses rising and changes in cost of inventories sold, depreciation, and other items Loss Before Tax Components | Indicator | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) (Restated) | | :--------------- | :-------------- | :----------------------- | | Employee benefit expenses | 69,090 | 64,544 | | Cost of inventories sold | 832,516 | 527,020 | | Depreciation | 135,415 | 135,640 | | Gain on derecognition of a subsidiary | — | (588,747) | | Impairment loss on property, plant and equipment | — | 16,568 | - In June 2023, Harbin Dacheng was liquidated due to insolvency, leading the Group to derecognize its assets and liabilities and recognize a **one-off gain of approximately HK$588.7 million**[29](index=29&type=chunk) [7. Income Tax Credit](index=17&type=section&id=7.%20Income%20Tax%20Credit) The company had no income tax credit for the period, primarily due to no taxable profits in Hong Kong and Chinese subsidiaries' tax losses or estimated taxable profits being fully absorbed by prior year losses - No provision for Hong Kong profits tax was made for the current period and the six months ended June 30, 2023, as the Group did not generate any taxable profits in Hong Kong[30](index=30&type=chunk) - No China corporate income tax was provided for the current period and the six months ended June 30, 2023, as all the Group's subsidiaries in China either incurred tax losses or their estimated taxable profits were fully absorbed by tax losses generated in prior years[30](index=30&type=chunk) [8. (Loss) Earnings Per Share](index=18&type=section&id=8.%20(Loss)%20Earnings%20Per%20Share) Basic and diluted loss per share for the period was 1.8 HK Cents, primarily from continuing operations, representing an expanded loss compared to the prior year (Loss) Earnings Per Share | Indicator | 2024 (HK Cents) | 2023 (HK Cents) (Restated) | | :--------------- | :------------ | :----------------------- | | Continuing operations | (1.8) | — | | Discontinued operations | — | (0.7) | | **Total** | **(1.8)** | **(0.7)** | - Basic and diluted (loss) earnings per share for the current period and the six months ended June 30, 2023, are equal, as the assumed conversion of convertible bonds and convertible preference shares had an anti-dilutive effect[32](index=32&type=chunk) [9. Dividends](index=18&type=section&id=9.%20Dividends) The Board does not recommend the payment of any dividend for the period, consistent with the prior year - The Board does not recommend the payment of any dividend for the current period (six months ended June 30, 2023: nil)[33](index=33&type=chunk) [10. Property, Plant and Equipment](index=19&type=section&id=10.%20Property%2C%20Plant%20and%20Equipment) As of June 30, 2024, the total value of property, plant and equipment was HK$3.60 billion, a decrease from the end of 2023, mainly due to depreciation and exchange adjustments Property, Plant and Equipment Movement | Indicator | June 30, 2024 (HK$ Thousand) | December 31, 2023 (HK$ Thousand) | | :--------------- | :--------------------- | :---------------------- | | At January 1 | 3,823,699 | 4,706,470 | | Depreciation | (127,208) | (283,020) | | Exchange adjustments | (94,344) | (151,377) | | At June 30/December 31 | 3,602,147 | 3,823,699 | [11. Trade Receivables](index=19&type=section&id=11.%20Trade%20Receivables) As of June 30, 2024, net trade receivables were HK$78.8 million, a significant decrease from the end of 2023; the company maintains strict control over receivables but faces credit concentration risk Trade Receivables | Indicator | June 30, 2024 (HK$ Thousand) | December 31, 2023 (HK$ Thousand) | | :--------------- | :--------------------- | :---------------------- | | Trade receivables | 406,431 | 480,900 | | Loss allowance | (327,630) | (340,686) | | **Net Value** | **78,801** | **140,214** | - The Group has **credit concentration risk**, with trade receivables from its largest customer and five largest customers accounting for **14.9% and 24.6%** of the total, respectively[36](index=36&type=chunk) Ageing Analysis of Trade Receivables | Ageing | June 30, 2024 (HK$ Thousand) | December 31, 2023 (HK$ Thousand) | | :----------- | :--------------------- | :---------------------- | | Within 1 month | 43,029 | 97,765 | | 1 to 2 months | 8,347 | 22,097 | | 2 to 3 months | 2,471 | 13,822 | | 3 to 6 months | 7,411 | 578 | | Over 6 months | 17,543 | 5,952 | | **Total** | **78,801** | **140,214** | [12. Prepayments, Deposits and Other Receivables](index=20&type=section&id=12.%20Prepayments%2C%20Deposits%20and%20Other%20Receivables) As of June 30, 2024, total prepayments, deposits, and other receivables amounted to HK$337.1 million, a slight decrease from the end of 2023 Prepayments, Deposits and Other Receivables | Indicator | June 30, 2024 (HK$ Thousand) | December 31, 2023 (HK$ Thousand) | | :--------------- | :--------------------- | :---------------------- | | Prepayments | 49,439 | 65,145 | | Deposits and other receivables | 59,223 | 44,480 | | China VAT and other tax receivables | 101,434 | 123,770 | | Receivables from disposal of assets | 127,009 | 129,801 | | **Total** | **337,105** | **363,196** | [13. Trade Payables](index=21&type=section&id=13.%20Trade%20Payables) As of June 30, 2024, total trade payables increased to HK$1.06 billion, primarily due to increased amounts payable to ADF Group Trade Payables | Indicator | June 30, 2024 (HK$ Thousand) | December 31, 2023 (HK$ Thousand) | | :--------------- | :--------------------- | :---------------------- | | To third parties | 606,304 | 636,924 | | To ADF Group | 451,942 | 267,246 | | **Total** | **1,058,246** | **904,170** | - Trade payables to ADF Group are unsecured and bear interest at an annual rate of **6.5% to 7.8%** after the credit period expires[39](index=39&type=chunk) Ageing Analysis of Trade Payables | Ageing | June 30, 2024 (HK$ Thousand) | December 31, 2023 (HK$ Thousand) | | :----------- | :--------------------- | :---------------------- | | Within 1 month | 227,481 | 76,963 | | 1 to 2 months | 28,572 | 4,091 | | 2 to 3 months | 9,640 | 239 | | Over 3 months | 792,553 | 822,877 | | **Total** | **1,058,246** | **904,170** | [14. Share Capital / Convertible Preference Shares](index=22&type=section&id=14.%20Share%20Capital%20%2F%20Convertible%20Preference%20Shares) As of June 30, 2024, the total nominal value of the company's issued share capital was approximately HK$2.62 billion, including newly issued convertible preference shares of HK$1.73 billion Share Capital Composition | Indicator | June 30, 2024 (HK$ Thousand) | December 31, 2023 (HK$ Thousand) | | :--------------- | :--------------------- | :---------------------- | | Ordinary shares | 890,741 | 890,741 | | Convertible preference shares | 1,726,775 | — | | **Total** | **2,617,516** | **890,741** | - As of June 30, 2024, the total nominal value of the Company's issued shares was approximately **HK$2.62 billion**, comprising approximately **HK$890.7 million** in ordinary shares and approximately **HK$1.73 billion** in convertible preference shares[40](index=40&type=chunk) Management Discussion and Analysis [Business Review](index=23&type=section&id=Business%20Review) The Group primarily produces and sells corn refining products, amino acids, corn sweeteners, and biochemical alcohol; despite global economic challenges, the Group significantly improved amino acid business revenue and gross profit through increased capacity, high-value product launches, and cost-saving measures, while sweetener and biochemical alcohol businesses remain suspended - The Group's product prices are influenced by raw material costs, market supply and demand, and product specifications[42](index=42&type=chunk) - The global economy faces uncertainties, and China's economic recovery remains challenging, with the operating environment expected to be difficult[42](index=42&type=chunk) - Global corn production is at historically high levels, with international corn prices falling to **397 US cents per bushel** by the end of June 2024[42](index=42&type=chunk) - Domestic corn prices fell to approximately **RMB2,464 per metric ton** by the end of June 2024; the Group will closely monitor market conditions and resume upstream production facilities at Xinglongshan plant when appropriate[43](index=43&type=chunk) - The amino acid market is driven by the recovery of the hog farming industry, leading to increased demand and an overall upward trend in amino acid product prices[43](index=43&type=chunk) - Changchun Dahe launched various **high-margin new amino acid products** and maintained sufficient cash flow to support capacity expansion, leading to significant improvements in the amino acid segment's revenue and gross profit[43](index=43&type=chunk) - Sweetener production facilities have been suspended since the first quarter of 2020, and biochemical alcohol business production has been suspended since the last quarter of 2022[43](index=43&type=chunk)[50](index=50&type=chunk) - The Group will develop new product portfolios, enhance production technology to reduce costs, and explore cooperation opportunities with enterprises in different industries[44](index=44&type=chunk) [Implementation of Corporate Governance Code](index=25&type=section&id=Implementation%20of%20Corporate%20Governance%20Code) The Group has implemented internal control measures, including preparing a corporate governance and disclosure compliance checklist and providing monthly training to directors, to ensure compliance with the disclosure requirements of the Corporate Governance Code set out in Appendix C1 of the Listing Rules - The Company has prepared a corporate governance and disclosure compliance checklist and provides monthly training to directors to ensure compliance with the disclosure requirements of the Corporate Governance Code set out in Appendix C1 of the Listing Rules[45](index=45&type=chunk) [Financial Performance](index=26&type=section&id=Financial%20Performance) Revenue from continuing operations significantly grew by 91.7% to HK$898.5 million for the period, with gross profit turning from loss to profit at HK$66.0 million, and a gross profit margin of 7.3%; the amino acid business performed strongly, export sales increased significantly, other income and gains rose substantially, and finance costs decreased significantly due to debt restructuring [Continuing Operations](index=26&type=section&id=Continuing%20Operations) For the period, consolidated revenue from continuing operations significantly increased by 91.7% to HK$898.5 million, with gross profit turning from loss to profit at HK$66.0 million and a gross profit margin of 7.3%, primarily due to increased amino acid capacity, high-value product launches, lower corn procurement prices, and reduced production costs Continuing Operations Key Financial Indicators | Indicator | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) (Restated) | Change Rate | | :--------------- | :-------------- | :----------------------- | :----- | | Consolidated Revenue | 898,500 | 468,800 | +91.7% | | Gross Profit (Loss) | 66,000 | (58,200) | Turned to profit | | Gross Profit (Loss) Margin | 7.3% | (12.4%) | Improved | - A **18.0% decrease in average corn procurement price** and an **18.6% decrease in average unit total production cost**, coupled with stable market prices for lysine products, led to a significant improvement in gross profit[46](index=46&type=chunk) [Upstream Products](index=26&type=section&id=Upstream%20Products) Upstream product sales increased to HK$140.1 million, but a gross loss of HK$5.8 million was still recorded, with a gross loss margin of 4.1%, narrowing from the prior year, due to the unfavorable market sentiment in the corn refining industry Upstream Products Sales and Gross Loss | Indicator | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | | :----------- | :-------------- | :-------------- | | Sales | 140,100 | 90,300 | | Gross Loss | (5,800) | (7,900) | | Gross Loss Margin | 4.1% | 8.7% | - All corn starch produced by the Group is for internal use, with **no external sales of corn starch** during the current and prior periods[47](index=47&type=chunk) - Sales of other corn refining products increased by approximately **96.3% to approximately 53,000 metric tons**[47](index=47&type=chunk) [Amino Acids](index=27&type=section&id=Amino%20Acids) Amino acid segment revenue significantly grew by 100.4% to HK$758.4 million, with gross profit turning from loss to profit at HK$71.8 million and a gross profit margin of 9.5%, driven by increased capacity utilization, high-value product launches, lower corn prices, and upgraded production processes Amino Acids Sales and Gross Profit | Indicator | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | | :----------- | :-------------- | :-------------- | | Sales | 758,400 | 378,500 | | Gross Profit (Loss) | 71,800 | (50,300) | | Gross Profit (Loss) Margin | 9.5% | 13.3% | - Amino acid segment sales volume was **123,000 metric tons**, a significant increase from **65,000 metric tons** in the prior period[48](index=48&type=chunk) - The outlook for the amino acid segment is expected to remain relatively stable in the second half of 2024, and the Group will advance renovation projects to further reduce production costs[48](index=48&type=chunk) [Corn Sweeteners](index=27&type=section&id=Corn%20Sweeteners) Due to the disposal of Dacheng Sugar and the suspension of sweetener production facilities at Xinglongshan plant since the first quarter of 2020, no sales were recorded in the sweetener segment for the current and prior periods - Following the completion of Dacheng Sugar's disposal, its financial results for the prior period have been re-presented as discontinued operations[49](index=49&type=chunk) - The Group's sweetener production facilities at Xinglongshan plant have been suspended since the first quarter of 2020, resulting in **no sales recorded** for the current period and 2023[49](index=49&type=chunk) [Biochemical Alcohol](index=28&type=section&id=Biochemical%20Alcohol) Due to the persistently challenging operating environment, the Group suspended production since the last quarter of 2022, resulting in no sales of biochemical alcohol products for the current and prior periods - Due to the persistently challenging operating environment for biochemical alcohol, the Group has suspended production since the last quarter of 2022 to minimize financial risks and safeguard financial resources[50](index=50&type=chunk) [Export Sales](index=28&type=section&id=Export%20Sales) Export sales for the period were approximately HK$307.0 million, a significant increase of 336.7% from the prior year, primarily comprising amino acids and other corn refining products, accounting for approximately 34.2% of total revenue Export Sales and Proportion | Indicator | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | | :--------------- | :-------------- | :-------------- | | Export sales | 307,000 | 70,300 | | Percentage of total revenue | 34.2% | 10.6% | - Export sales primarily consisted of amino acids and other corn refining products, with approximately **37,000 metric tons of amino acids** and **7,000 metric tons of other corn refining products** exported[51](index=51&type=chunk) [Other Income and Gains, Operating Expenses, Finance Costs and Income Tax Credit](index=28&type=section&id=Other%20Income%20and%20Gains%2C%20Operating%20Expenses%2C%20Finance%20Costs%20and%20Income%20Tax%20Credit) Other income and gains for the period significantly increased by 461.7% to HK$124.7 million, mainly due to government grants and fair value gains on financial assets; sales and distribution costs rose with sales volume, administrative expenses slightly decreased, and other expenses significantly reduced; finance costs substantially decreased by 63.6% due to debt restructuring, with no income tax credit or expense for the period Other Income and Expense Changes | Indicator | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | Change Rate | | :--------------- | :-------------- | :-------------- | :----- | | Other income and gains | 124,700 | 22,200 | +461.7% | | Sales and distribution costs | 44,100 | 22,500 | +96.0% | | Administrative expenses | 127,700 | 130,200 | -1.9% | | Other expenses | 52,400 | 119,500 | -56.2% | | Finance costs | 124,200 | 340,800 | -63.6% | - The increase in other income and gains was primarily due to a **one-off government grant of approximately HK$67.4 million** received by Changchun Dahe and **fair value gains of HK$28.2 million** on financial assets at fair value through profit or loss[51](index=51&type=chunk) - The rise in sales and distribution costs was mainly due to increased sales volume of amino acids and other corn refining products[52](index=52&type=chunk) - The decrease in administrative expenses was primarily due to reduced professional fees[53](index=53&type=chunk) - The reduction in other expenses was mainly due to decreased expenses related to the temporary suspension of the Group's Changchun Dahe production facilities during the period[54](index=54&type=chunk) - No income tax expense or deferred tax credit was recorded for the period, as tax losses were absorbed[56](index=56&type=chunk) [Discontinued Operations](index=29&type=section&id=Discontinued%20Operations) Following the completion of Dacheng Sugar's disposal, its financial results for the prior period have been re-presented as discontinued operations, recording a loss of approximately HK$65.4 million - Following the completion of Dacheng Sugar's disposal, its financial results for the prior period, used for comparative purposes, have been presented as discontinued operations in the Group's condensed consolidated financial statements for the prior period[57](index=57&type=chunk) - For the six months ended June 30, 2023, the Group's discontinued operations recorded a **loss of approximately HK$65.4 million**[57](index=57&type=chunk) [Net Loss Attributable to the Company from Continuing Operations](index=30&type=section&id=Net%20Loss%20Attributable%20to%20the%20Company%20from%20Continuing%20Operations) Despite significant improvement in gross profit, the net loss from continuing operations for the period was approximately HK$157.7 million, with EBITDA of approximately HK$101.9 million, due to the absence of the one-off gain from derecognition of Harbin Dacheng in the prior year Net Loss and EBITDA from Continuing Operations | Indicator | 2024 (HK$ Thousand) | 2023 (HK$ Thousand) | | :--------------- | :-------------- | :-------------- | | Net Loss | 157,700 | 29,800 | | EBITDA | 101,900 | 416,100 | - The Group will focus on property expropriation to settle debts and increase financial resources, streamline production processes, promote renovation projects to reduce costs, and introduce industry participants to resume production at Xinglongshan plant to enhance operational efficiency and strengthen working capital[58](index=58&type=chunk) [Capital Structure, Financial Resources and Liquidity](index=30&type=section&id=Capital%20Structure%2C%20Financial%20Resources%20and%20Liquidity) The Group's capital structure includes debt, convertible bonds, and equity reserves; as of June 30, 2024, net borrowings and gearing ratio significantly improved due to debt restructuring and convertible preference share issuance; current ratio and quick ratio remained stable, trade receivables turnover days decreased, while trade payables and inventory turnover days increased [Capital Structure](index=30&type=section&id=Capital%20Structure) The Group's capital structure comprises debt (interest-bearing bank and other borrowings), convertible bonds, and equity reserves attributable to owners of the Company, which the Board regularly reviews to optimize the capital structure - The Group's capital structure comprises debt (primarily interest-bearing bank and other borrowings), convertible bonds, and equity reserves attributable to owners of the Company (including issued ordinary shares, convertible preference shares, and various reserves)[59](index=59&type=chunk) [Net Borrowings Position](index=31&type=section&id=Net%20Borrowings%20Position) As of June 30, 2024, the Group's total interest-bearing bank and other borrowings decreased by approximately HK$1.78 billion to HK$1.82 billion, and net borrowings decreased by approximately HK$1.76 billion to HK$1.75 billion, primarily due to debt restructuring arrangements Net Borrowings Position | Indicator | June 30, 2024 (HK$ Thousand) | December 31, 2023 (HK$ Thousand) | | :--------------- | :--------------------- | :---------------------- | | Total interest-bearing bank and other borrowings | 1,820,000 | 3,598,400 | | Cash and bank balances and pledged bank deposits | 66,300 | 88,400 | | Net borrowings | 1,753,700 | 3,510,000 | - The decrease in total borrowings was mainly due to the completion of debt restructuring arrangements on January 4, 2024, through the **settlement of transferred loans of approximately HK$1.74 billion**[60](index=60&type=chunk) [Structure of Interest-Bearing Bank and Other Borrowings](index=31&type=section&id=Structure%20of%20Interest-Bearing%20Bank%20and%20Other%20Borrowings) As of June 30, 2024, approximately HK$1.82 billion of the Group's interest-bearing bank and other borrowings were all denominated in RMB and repayable in full within one year or on demand, with approximately HK$55.1 million bearing fixed interest rates - As of June 30, 2024, the Group's interest-bearing bank and other borrowings of approximately **HK$1.82 billion** were all denominated in RMB and repayable in full within one year or on demand[61](index=61&type=chunk) - Approximately **HK$55.1 million** of interest-bearing bank and other borrowings bore fixed interest rates ranging from **6.5% to 7.8% per annum**, with the remainder bearing floating interest rates[61](index=61&type=chunk) [Convertible Bonds](index=32&type=section&id=Convertible%20Bonds) The conversion price of the convertible bonds issued by the Company in 2015 was adjusted to HK$0.21 per share, and the maturity date was extended twice to September 30, 2025; as of June 30, 2024, the convertible bonds were split into a liability component of approximately HK$854.6 million and an equity component of approximately HK$104.7 million - The conversion price of the convertible bonds has been adjusted to **HK$0.21 per share**, with a maximum of **5,172,759,833 shares** convertible[62](index=62&type=chunk) - The maturity date of the convertible bonds has been extended twice, most recently to **September 30, 2025**[62](index=62&type=chunk)[63](index=63&type=chunk) - As of June 30, 2024, the convertible bonds were split into a **liability component of approximately HK$854.6 million** and an **equity component of approximately HK$104.7 million**[63](index=63&type=chunk) [Convertible Preference Shares](index=33&type=section&id=Convertible%20Preference%20Shares) To raise funds for debt restructuring, the Company completed the issuance of convertible preference shares on January 4, 2024, with net proceeds of approximately HK$1.72 billion used to repay loans; holders of convertible preference shares are entitled to non-cumulative preferential distributions and can convert them into shares 12 months after the issue date - The Company entered into convertible preference share subscription agreements with Jilin Yuanheng and Jilin Liheng on November 30, 2023, at a subscription price of **HK$0.10 per share**[64](index=64&type=chunk) - Holders of convertible preference shares are entitled to receive non-cumulative preferential distributions at an annual rate not exceeding **5%**, and can convert them into fully paid shares at any time **12 months after the issue date**[64](index=64&type=chunk)[65](index=65&type=chunk) - The **net proceeds of approximately HK$1.72 billion** from the convertible preference shares subscription were fully utilized in January 2024 to repay the transferred loans[65](index=65&type=chunk) [Turnover Days, Liquidity Ratios and Gearing Ratio](index=35&type=section&id=Turnover%20Days%2C%20Liquidity%20Ratios%20and%20Gearing%20Ratio) For the period, trade receivables turnover days decreased to 16 days, trade payables turnover days increased to 215 days, and inventory turnover days increased to 66 days; current ratio and quick ratio remained at 0.1; net liabilities and gearing ratio significantly improved after debt restructuring Turnover Days and Liquidity Indicators | Indicator | June 30, 2024 | December 31, 2023 | | :--------------- | :------------ | :------------- | | Trade receivables turnover days | 16 days | 19 days | | Trade payables turnover days | 215 days | 144 days | | Inventory turnover days | 66 days | 20 days | | Current ratio | 0.1 | 0.1 | | Quick ratio | 0.1 | 0.1 | | Net liabilities | HK$2.70 billion | HK$4.04 billion | | Gearing ratio | 55.0% | 84.5% | - The increase in trade payables turnover days was mainly due to an increase in raw material quantities to meet sales growth[66](index=66&type=chunk) - The increase in inventory turnover days was mainly due to the Group maximizing its operational capacity and maintaining sufficient inventory to meet sales orders[66](index=66&type=chunk) [Foreign Exchange Risk](index=35&type=section&id=Foreign%20Exchange%20Risk) Most of the Group's operations are in China, with transactions settled in RMB and export sales in USD; management believes there is no significant adverse foreign currency risk in the short term and does not currently intend to hedge, but will continue to review - Most of the Group's operations are conducted in China, with transactions settled in RMB, and export sales settled in USD, accounting for approximately **34.2% of revenue** for the period[67](index=67&type=chunk) - The Company's management believes there is no significant adverse foreign currency risk in the short term and does not currently intend to hedge its RMB foreign exchange fluctuation risk[67](index=67&type=chunk) Supplementary Information for the Period [Energy Management Contract](index=36&type=section&id=Energy%20Management%20Contract) Changchun Dahe and Modern Agriculture Fund previously entered into an energy management contract for a boiler facility renovation project, but due to adjustments in coal consumption targets, the contract was terminated on August 19, 2024; the Group will redesign the plan and continue negotiations to complete the adjusted renovation project - Changchun Dahe and Jilin Province Modern Agriculture Industry Fund Co, Ltd previously entered into an energy management contract to implement Changchun Dahe's renovation project through an energy contract management model[68](index=68&type=chunk) - The contract originally planned for Modern Agriculture Fund to invest, construct, maintain, and manage boiler facilities, and receive net energy savings at a ratio of **20% and 80%** during a 6-year energy efficiency sharing period[68](index=68&type=chunk) - Due to the need to scale down the renovation project to comply with coal consumption targets, the initial energy management contract was terminated on **August 19, 2024**[69](index=69&type=chunk) - The Group's management will strive to redesign the renovation project plan and continue negotiations with various financial institutions and local governments[69](index=69&type=chunk) [Material Events After the Reporting Period](index=37&type=section&id=Material%20Events%20After%20the%20Reporting%20Period) Except for the termination agreement of the energy management contract, no other material events affecting the Group have occurred from the end of the reporting period up to the date of this announcement - Except for the termination agreement, no other material events affecting the Group have occurred from the end of the reporting period up to the date of this announcement[70](index=70&type=chunk) [Future Plans and Prospects](index=38&type=section&id=Future%20Plans%20and%20Prospects) The Group will maintain market position through internal R&D, diversify product range, and enhance high-value product development capabilities; in the short term, it will consolidate the lysine business for stable cash flow and plans to renovate boiler facilities in the second half of 2024; long-term plans include introducing industry players to resume production at Xinglongshan plant and optimizing capital expenditure decisions - The Group will strive to maintain its market position through internal research and development, diversify its product range, and enhance its capabilities in developing high-value products and new applications[71](index=71&type=chunk) - In the short term, the Group will continue to cooperate with distributors to consolidate stable production of lysine products, which is expected to generate stable and healthy cash flow[71](index=71&type=chunk) - Renovation of Changchun Dahe's boiler facilities is expected to commence in the **second half of 2024** to further reduce production costs[71](index=71&type=chunk) - In the long term, the Group will endeavor to introduce industry participants to facilitate the resumption of production at Xinglongshan plant to enhance operational efficiency and strengthen working capital[71](index=71&type=chunk) [Number of Employees and Remuneration](index=39&type=section&id=Number%20of%20Employees%20and%20Remuneration) As of June 30, 2024, the Group employed approximately 2,600 full-time employees, a decrease from the prior year; the Group values human resource management, offering competitive compensation, benefits, and career development opportunities, with employee benefit expenses of approximately HK$69.6 million for the period Number of Employees and Benefit Expenses | Indicator | June 30, 2024 | June 30, 2023 | | :--------------- | :------------ | :------------- | | Number of full-time employees | 2,600 | 3,100 | | Employee benefit expenses (HK$ Thousand) | 69,600 | 65,200 | - The Group focuses on the selection and recruitment of new employees, on-the-job training, and evaluation and rewarding of employees, and is committed to maintaining competitive compensation, benefits, and career development opportunities[72](index=72&type=chunk) [Interim Dividends](index=39&type=section&id=Interim%20Dividends) The Board does not recommend the payment of any dividend for the period, consistent with the prior year - The Board does not recommend the payment of any dividend for the current period (six months ended June 30, 2023: nil)[73](index=73&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=39&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) During the period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities - During the period, neither the Company nor any of its subsidiaries purchased, redeemed, or sold any of the Company's listed securities[74](index=74&type=chunk) [Compliance with Corporate Governance Code and Model Code](index=39&type=section&id=Compliance%20with%20Corporate%20Governance%20Code%20and%20Model%20Code) The Board confirms that the Company has complied with all code provisions of the Corporate Governance Code throughout the period, and all Directors have complied with the Model Code and the Company's code of conduct - The Board believes that the Company has complied with all code provisions set out in Part 2 of the Corporate Governance Code throughout the period[75](index=75&type=chunk) - All Directors have confirmed to the Company that they have complied with the required standards set out in the Model Code and the Company's code of conduct throughout the period[75](index=75&type=chunk) [Audit Committee and Review of Interim Financial Information](index=40&type=section&id=Audit%20Committee%20and%20Review%20of%20Interim%20Financial%20Information) The Audit Committee has reviewed the Group's interim results for the period and this announcement, and discussed accounting principles and policies with management, with no disagreements - The Audit Committee has reviewed the Group's interim results for the period and this announcement, and has discussed the accounting principles and policies adopted by the Group with the Company's management, with no disagreements[76](index=76&type=chunk) [Full Details of Financial Information](index=40&type=section&id=Full%20Details%20of%20Financial%20Information) The Company's interim report will be published in due course on the HKEX website and the "Investor Relations" section of the Company's website, and will be dispatched to shareholders - The Company's interim report will be published in due course on the HKEX website (www.hkexnews.hk) and in the "Investor Relations" section of the Company's website (www.globalbiochem.com)[77](index=77&type=chunk)