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)

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

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

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

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 ...