Financial Performance - For the year ended December 31, 2023, the company reported a revenue of RMB 1,110,412 thousand, an increase from RMB 1,032,155 thousand in 2022, representing a growth of approximately 7.6%[26]. - The company's profit before tax for 2023 was RMB 67,922 thousand, significantly higher than RMB 35,682 thousand in 2022, indicating an increase of approximately 90.2%[3]. - The net profit for the year was RMB 29,543 thousand, up from RMB 21,470 thousand in the previous year, reflecting a growth of about 37.7%[26]. - Total comprehensive income for the year was RMB 35,480 thousand, compared to RMB 29,614 thousand in 2022, marking an increase of approximately 19.8%[4]. - Basic and diluted earnings per share for 2023 were RMB 1.0, compared to RMB 0.7 in 2022, showing a growth of approximately 42.9%[5]. - The group reported a pre-tax profit of RMB 182,665 thousand, a decrease from RMB 206,975 thousand in 2022, reflecting a decline of 11.7%[46]. - The total tax expense for the year was RMB 38,379 thousand, compared to RMB 14,212 thousand in the previous year, indicating a substantial increase[44]. - The company reported a basic earnings per share of RMB 0.0097 in 2023, up from RMB 0.0073 in 2022, indicating a growth of 32.9%[71]. - Profit attributable to equity holders increased by 32.6% to RMB 31.2 million from RMB 23.6 million[168]. Revenue Breakdown - Revenue from mainland China was RMB 961,553 thousand, up 6.9% from RMB 898,956 thousand in the previous year[39]. - Revenue from Asia (excluding mainland China) increased significantly by 46.7% to RMB 99,064 thousand from RMB 67,483 thousand[39]. - The group's total revenue for 2023 reached RMB 1,110,412 thousand, an increase of 7.6% from RMB 1,032,155 thousand in 2022[39]. - The total sales revenue of collagen protein products, skincare products, and medical devices increased by approximately 23.0% compared to the same period last year[82]. Assets and Liabilities - The total assets decreased to RMB 2,403,359 thousand in 2023 from RMB 2,548,685 thousand in 2022, a decline of about 5.7%[6]. - The total equity attributable to equity holders of the parent decreased to RMB 2,376,216 thousand in 2023 from RMB 2,519,442 thousand in 2022, a decrease of approximately 5.7%[7]. - Total liabilities increased to RMB 101,658,000 in 2023 from RMB 85,003,000 in 2022, reflecting a rise of 19.6%[75]. - The net cash position as of December 31, 2023, was approximately RMB 751,200,000, down from RMB 828,400,000 at the end of 2022, with a debt-to-equity ratio of 11.7%[104]. - The group’s total bank borrowings as of December 31, 2023, amounted to approximately RMB 272,800,000, a decrease of approximately RMB 262,400,000 from RMB 535,200,000 as of December 31, 2022[128]. Cash Flow and Expenses - Cash inflow from operating activities was approximately RMB 176,400,000, while cash outflow from financing activities was about RMB 455,200,000[105]. - Employee benefits expenses increased to RMB 219,489,000 in 2023 from RMB 185,554,000 in 2022, representing a growth of 18.3%[5]. - The cost of goods sold rose to RMB 841,693,000 in 2023, compared to RMB 766,286,000 in 2022, marking an increase of 9.8%[5]. - Sales costs increased by approximately 7.8% to RMB 939,600,000, with raw material costs rising by about 8.1% to RMB 469,600,000[119]. - Sales and distribution expenses rose by approximately 3.6% to about RMB 35,000,000, with the ratio of these expenses to revenue decreasing from about 3.3% to approximately 3.1%[94]. - Administrative expenses decreased by approximately 0.7% to about RMB 152,000,000 this year[95]. - Financing costs decreased by approximately 1.5% to about RMB 9,100,000 this year[97]. Production and Operations - The group has established a stable customer base, continuing to provide quality casing products to several well-known food suppliers in China[61]. - The group is preparing for large-scale production of collagen protein products, including collagen noodles and drinks, and plans to expand product promotion and sales channels[55]. - The group has faced increased production costs due to rising raw material prices and electricity costs, impacting gross profit margins[52]. - The average production unit cost increased due to trial production expenses, which, if excluded, would have resulted in a gross profit increase of approximately RMB 52,700,000[81]. - The group plans to construct an additional 50 production lines to expand capacity to meet the demand for larger caliber products in the sausage casing industry[135]. - The company is conducting clinical trials for products such as oral medical collagen sponges and wound dressings, with some products already completing trials in multiple hospitals[84]. Dividends and Shareholder Information - The company plans to distribute a final dividend of HKD 0.02 per share and a special final dividend of HKD 0.02 per share[25]. - The board proposed a final dividend of HKD 0.02 per ordinary share and a special final dividend of HKD 0.02 per ordinary share, subject to shareholder approval[138]. - The company will hold its annual general meeting on June 3, 2024, with a record date for dividend entitlement set for June 13, 2024[161]. Strategic Initiatives - The company plans to focus on technological innovation and expanding domestic demand as part of its strategy for 2024[111]. - The company aims to drive the healthy development of the health industry by establishing a solid foundation for collagen protein raw material production[60]. - The company has established a diversified product development strategy centered around collagen protein, including collagen-based food, skincare products, and medical devices[156]. - The company aims to promote innovative applications of collagen protein in the food sector, providing high-value health food products[157]. - The company plans to expand its marketing strategies and teams to improve performance, utilizing both in-store experiences and online live broadcasts[157]. Compliance and Governance - The company has confirmed compliance with all applicable laws, accounting standards, and regulations during the fiscal year[146]. - The company is considering the feasibility of appointing a separate CEO to ensure compliance with governance standards[144]. - The company did not engage in any significant investments, acquisitions, or disposals of subsidiaries during the year[109]. - The company has not engaged in any purchases, redemptions, or sales of its listed securities during the fiscal year[163].

Financial Performance - Revenue for the first half of 2023 reached RMB 509.3 million, an increase of 18.2% compared to RMB 430.8 million in the same period of 2022[35]. - Profit attributable to owners of the company was RMB 1.2 million, a significant decrease of 91.1% from RMB 13.5 million in the previous year[35]. - Basic earnings per share dropped to RMB 0.04, down 90.5% from RMB 0.42 in the same period last year[35]. - The company reported a profit before tax of RMB 19,287 thousand, a decrease of 11.8% from RMB 21,857 thousand in the previous year[157]. - The net profit for the period was RMB 140 thousand, a significant decrease from RMB 12,184 thousand in the same period of 2022[157]. - The total comprehensive income for the period was RMB 7,719 thousand, down from RMB 14,989 thousand year-on-year[158]. Revenue Sources - The company's revenue from the sale of calcium oxide was RMB 894,000, down from RMB 1,045,000 in the previous year[2]. - Revenue from external customers for the first half of 2023 reached RMB 118,954,000, a significant increase from RMB 54,405,000 in the same period of 2022, representing a growth of 118%[167]. - The company's revenue from Mainland China for the six months ended June 30, 2023, was RMB 441,033,000, up from RMB 377,676,000 in 2022, indicating a growth of about 16.8%[188]. - Revenue from contracts with customers for the six months ended June 30, 2023, was RMB 509,306,000, an increase from RMB 430,791,000 in the same period of 2022, representing a growth of approximately 18.2%[190]. - The revenue from regions outside Mainland China for the six months ended June 30, 2023, was RMB 68,273,000, an increase from RMB 53,115,000 in 2022, representing a growth of approximately 28.5%[188]. Cost and Expenses - Sales cost rose by approximately 32.9% to RMB 463,500,000, with raw material costs increasing by 37.8% to RMB 217,200,000 and energy costs up by 36.3% to RMB 92,100,000[49]. - Selling and distribution expenses rose by approximately 21.3% to RMB 16,900,000, with the expense ratio increasing from 3.2% to 3.3% of revenue[62]. - Administrative expenses decreased by approximately 3.2% to RMB 67,400,000, with foreign exchange losses reduced from RMB 6,600,000 to RMB 2,500,000[63]. - The total compensation and employee benefits expense for the period amounted to approximately RMB 112.6 million, compared to RMB 93.2 million in the previous period, reflecting an increase of approximately 20.5%[97]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to RMB 2,906.6 million, a decrease from RMB 3,354.4 million in the previous fiscal year[17]. - The company's net cash position as of June 30, 2023, was approximately RMB 774.6 million, which decreased to RMB 657.7 million after accounting for dividends, representing a decline of about RMB 170.7 million from the end of 2022[68]. - The debt-to-equity ratio as of June 30, 2023, was 8.8%, down from 21.5% at the end of 2022, indicating improved financial leverage[68]. - The total equity attributable to owners of the company was RMB 2,354,256 thousand, compared to RMB 2,524,173 thousand at the end of 2022, reflecting a decrease of around 6.73%[145]. - Non-current liabilities decreased to RMB 24,332 thousand from RMB 29,243 thousand, a reduction of about 16.5%[145]. Investments and Capital Expenditures - The company invested RMB 45.5 million in capital expenditures to expand production capacity and upgrade equipment, with plans to increase production lines from 68 to 300 by the end of 2023[39]. - Estimated capital expenditure for 2023 is approximately RMB 100 million, aimed at upgrading production facilities and expanding new collagen product applications[82]. - The group’s capital expenditure during the period was approximately RMB 45.5 million, primarily for capacity expansion and equipment upgrades, with total capital commitments as of June 30, 2023, amounting to approximately RMB 145.2 million[80]. Market and Industry Trends - The overall economic growth in China for the first half of 2023 was 5.5%, significantly higher than the 3% growth for the entire previous year[19]. - The demand for collagen, identified as a strategic emerging industry, is rapidly growing in both domestic and international markets[19]. - The company plans to leverage the growing demand for collagen-based products as part of its future growth strategy[19]. Corporate Governance - The company has maintained compliance with the corporate governance code throughout the reporting period[130]. - The board structure is designed to ensure a balance of power and responsibilities between the board and management[121]. - The company is considering the feasibility of appointing a separate CEO to enhance governance[131]. - The company’s chairman and CEO roles are currently held by the same individual, which the board believes does not impair governance[121]. Research and Development - The company has obtained dual certifications of EU ISO13485 and ISO22442 for its collagen medical devices, enhancing regulatory feasibility for customers[29]. - Clinical trials for collagen bone filling materials have been successfully completed, achieving expected results[29]. - The company is actively developing new skincare products and enhancing existing formulations, with several new products set to launch soon[43]. - The company plans to launch all developed food-related new products, including collagen rice noodles and collagen oatmeal drinks, into the market within 2023[100]. - The company is advancing the production license work for Class III medical devices, specifically collagen bone filler materials, and aims to expedite clinical trials for medical beauty products[101].

Financial Performance - Revenue for the first half of 2023 increased by 18.2% to RMB 509.3 million, compared to RMB 430.8 million in the same period of 2022[19]. - Profit attributable to owners of the company decreased by 91.1% to RMB 1.2 million, down from RMB 13.5 million in the previous year[19]. - Basic earnings per share fell by 90.5% to RMB 0.04, compared to RMB 0.42 in the same period last year[19]. - Gross profit for the same period was RMB 45,799,000, down 44.2% from RMB 81,943,000 year-on-year[38]. - Other income and gains for the six months ended June 30, 2023, amounted to RMB 70,069,000, significantly up from RMB 30,876,000 in the previous year, representing a growth of 126.5%[38]. - The total comprehensive income for the period was 7,719,000, compared to 14,989,000 in the previous period, reflecting a decrease[57]. - The total equity attributable to the company's owners was 2,348,455,000, compared to 2,519,442,000 in the previous period[59]. Sales and Revenue Growth - The group's collagen protein sausage casings experienced a sales volume increase of approximately 15.2% compared to the same period last year, despite production cost increases[12]. - Revenue from other products, excluding collagen protein casings and traditional Chinese medicine, grew by approximately 115.3% year-on-year[14]. - Customer 1 generated revenue of RMB 118,954,000, a significant increase from RMB 54,405,000 in the previous period, representing a growth of approximately 118%[69]. - Revenue from customer contracts for the six months ended June 30, 2023, was RMB 509,306,000, an increase from RMB 430,791,000 in the same period of 2022, representing a growth of approximately 18.2%[85]. Cost and Expenses - Sales costs increased by approximately 32.9% to RMB 463,500,000, up from RMB 348,800,000 in the previous period[74]. - The cost of goods sold for the six months ended June 30, 2023, was RMB 416,623,000, up from RMB 308,453,000 in the same period of 2022, indicating an increase of approximately 35%[86]. - The cost of raw materials increased by approximately 37.8% to RMB 217,200,000[74]. - Energy costs rose by approximately 36.3% to RMB 92,100,000 during the period[74]. - Sales and distribution expenses increased by approximately 21.3% to RMB 16,900,000, representing about 3.3% of total revenue, up from 3.2% in the previous period[93]. Assets and Liabilities - The total assets as of June 30, 2023, were RMB 2,906.6 million, down from RMB 3,354.4 million in the previous year[19]. - The total accounts receivable and notes receivable as of June 30, 2023, was RMB 173,139,000, a decrease of 16.4% from RMB 206,975,000 at the end of 2022[41]. - Total accounts payable and notes payable as of June 30, 2023, was RMB 69,266,000, down 18.5% from RMB 85,003,000 at the end of 2022[36]. - The total liabilities as of June 30, 2023, were RMB 533,827,000, a decrease from RMB 805,726,000 at the end of 2022[41]. - The net cash and cash equivalents as of June 30, 2023, were RMB 849,238,000, a decrease from RMB 953,950,000 at the end of 2022[41]. Production and Quality Control - The group continues to focus on product quality, implementing strict quality control measures throughout the production process[3]. - The group has established stable customer relationships, providing high-quality sausage casing products to several well-known food suppliers in China and maintaining connections with leading meat processing companies in Southeast Asia, South America, and the United States[6]. - The group is preparing for large-scale production of new collagen protein products, including collagen protein rice noodles and drinks[14]. - The group’s subsidiary, Wuzhou Zhongguan, is capable of testing over 800 physical and chemical indicators, enhancing the group's capabilities in food safety testing services[4]. - The group has obtained various quality management certifications, including ISO9001 and ISO22000, ensuring compliance with food safety regulations and enabling exports to Southeast Asia, Europe, and the United States[3]. Research and Development - Clinical trials for collagen bone filler materials have been successfully completed in multiple hospitals, achieving expected results[15]. - The company is conducting animal trials for medical collagen sponges and aesthetic products, with clinical trial discussions ongoing[16]. - The company aims to accelerate clinical trials and production license applications for new medical collagen products, including collagen bone filling materials and aesthetic products[148]. - The group plans to develop new skincare and cleansing products to expand the "Luxeena" product line and increase the launch of multiple "Collagen Princess" product series[123]. Employee and Corporate Governance - The company has approximately 2,700 contracted employees as of June 30, 2023, compared to 2,690 on June 30, 2022[145]. - Total employee compensation and benefits expenses amounted to approximately RMB 112.6 million during the period, up from approximately RMB 93.2 million in the previous period[145]. - The company has adhered to all corporate governance codes during the period, with the board regularly convening to consider significant operational matters[154][155]. - The audit committee consists of three independent non-executive directors, ensuring professional accounting qualifications and relevant experience[157]. Future Outlook and Strategy - The group anticipates new opportunities arising from recent government policies aimed at promoting the development of the private economy[122]. - The company expects continuous growth in market demand for the meat processing industry in China[131]. - The company aims to adjust its marketing strategy and expand its marketing team to achieve better performance, including online live streaming initiatives[132]. - The company will continue to enhance its production facilities for collagen protein food products to meet market demand[132]. - The company plans to complete the upgrade of 68 production lines by the end of 2023, expanding to a total of 300 production lines[72].

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 1,032.2 million, a decrease of 11.6% compared to RMB 1,168.1 million in 2021[7] - Profit attributable to owners of the company was RMB 23.6 million, down 80.8% from RMB 122.7 million in the previous year[7] - Basic earnings per share for 2022 were RMB 0.7, representing an 81.6% decline from RMB 3.8 in 2021[7] - Net cash flow from operating activities was RMB 106.0 million, a decrease of 41.0% from RMB 179.7 million in 2021[7] - Gross profit fell by approximately 48.3% from RMB 310,500,000 to RMB 160,500,000, with the gross margin declining from 26.6% to 15.5%[38] - Other income and gains increased by approximately 16.3% from RMB 53,600,000 to RMB 62,300,000, including a fair value gain of RMB 5,200,000 from derivative financial instruments[39] - Financing costs rose by approximately 73.4% from RMB 5,300,000 to RMB 9,200,000 due to increased bank borrowings and rising market interest rates[44] - The company recorded a foreign exchange loss of approximately RMB 16,900,000, compared to a loss of RMB 2,100,000 in the previous year[43] - The company’s attributable profit decreased by approximately 80.8% from RMB 122,700,000 to RMB 23,600,000[49] Operational Insights - The company plans to adopt a cautious approach in 2023, focusing on production and operational improvements despite facing pressures from high raw material prices and customer product upgrades[15] - The company will continue to explore opportunities in the collagen casing industry as the meat industry is expected to recover[15] - Inventory turnover days for raw materials increased to 39.8 days from 37.4 days, while finished goods turnover days decreased to 152.5 days from 159.6 days[7] - Accounts receivable turnover days increased to 70.2 days from 56.0 days, indicating a longer collection period[7] - The group aims to stabilize the quality of collagen protein casings and increase the sales proportion of new products in 2023[17] - The group plans to implement technical transformations to reduce input costs while improving output efficiency, alongside accelerating automation and smart upgrades of production equipment[18] - The group has completed several R&D and technical transformation projects to enhance production capacity without increasing facility space and to lower production costs[24] Research and Development - The group has obtained production permits for collagen protein oat milk and is preparing for large-scale production[25] - The group has received dual certifications (ISO13485 and ISO22442) for its medical collagen products, enhancing regulatory feasibility for customers[25] - The group holds a total of 109 patents as of December 31, 2022, with 75 valid patents in force[29] - The group is focusing on the development of new collagen-based products, including collagen food, skincare products, and medical devices, under a "one body, three wings" strategy[18] - The group is conducting clinical trials for its medical collagen products, including "artificial bone" materials, which have received ethical approval[25] - The company is advancing research on medical collagen products to improve purity, activity, and reduce costs, with ongoing clinical trials for collagen bone filling materials and beauty products[67] Market and Strategic Outlook - The group anticipates a recovery in the meat industry and collagen protein casing market as the Chinese economy stabilizes post-pandemic[17] - The company aims to enhance production capacity while maintaining quality, focusing on collagen products and improving production efficiency through technical upgrades[66] - The company plans to increase the sales proportion of new collagen food products, including collagen rice noodles and oatmeal drinks, by improving production facilities and marketing strategies[66] - The company is developing new skincare products under the "Loxsana" brand and expanding the "Collagen Princess" product line, with a strong emphasis on online and offline sales strategies[66] - The company is investing in R&D for new technologies, aiming to introduce at least two innovative products in the next 12 months[144] - Market expansion plans include entering two new international markets by the end of the next fiscal year, targeting a 10% increase in market share[144] - The company has completed a strategic acquisition of a competitor, which is expected to enhance production capacity by 20%[144] Governance and Management - The board of directors consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors, ensuring a high level of independence[71] - The board held five meetings during the year, with attendance rates for all directors being high, indicating strong governance practices[77] - The company has appointed a new independent non-executive director, Mr. Zhou Xiaoxiong, at the 2023 Annual General Meeting[79] - The board consists of eight directors, including one female, achieving gender diversity[88] - The company has established a nomination committee to recommend qualified candidates for the board, focusing on character, qualifications, and experience[83][90] - The independent non-executive directors have confirmed their independence according to the listing rules, ensuring no significant relationships with management or major shareholders[78] - The company is considering the feasibility of appointing a CEO to enhance operational oversight[81] - The board believes that the current structure does not impair the balance of power and responsibilities between the board and management[81] - The company has adopted a board diversity policy to improve performance quality through diverse perspectives[87] Shareholder Relations and Dividends - The company has adopted a dividend policy that allows for annual dividends to be paid to shareholders, subject to board approval and legal regulations, provided the group is profitable and stable[92] - The board will consider various factors, including the company's actual and expected financial performance, retained earnings, and any restrictions imposed by lenders on dividend payments when proposing dividends[94] - The company will regularly review its dividend policy and submit necessary amendments for board approval[96] - The board proposed a final dividend of HKD 0.02 per ordinary share and a special final dividend of HKD 0.04 per ordinary share, subject to shareholder approval[167] - The company emphasizes strong communication with investors through various channels, including seminars with media, analysts, and fund managers[132] - The company maintains a robust investor communication policy, providing timely updates on business performance through annual and interim reports[138] - Shareholders can submit inquiries to the board in writing, ensuring transparency and engagement[139] Risk Management - The company has established a risk management framework to effectively manage risks across its business areas[126] - The financial director is responsible for preparing financial statements in accordance with Hong Kong accounting principles and ensuring they accurately reflect the company's performance[123] - The company secretary is responsible for ensuring compliance with legal and regulatory requirements and facilitating communication with shareholders[125] - The board has confirmed that the group's risk management and internal control systems are effective and adequate[128] - The group conducts annual reviews of its risk management and internal control systems, including the ability to adapt to business and external environment changes[128] Employee and Compensation - The total employee compensation and benefits expense for the year was approximately RMB 185,600,000, down from RMB 192,900,000 in the previous year[63] - The company emphasizes the importance of human resources for long-term business success and development, ensuring employee compensation is market-competitive[166] - The group employed approximately 2,710 contract employees as of December 31, 2022, an increase from 2,650 employees at the end of 2021[63] Corporate Social Responsibility - The company made charitable donations totaling RMB 2,556,000 during the year[177] - The company is committed to promoting clean production and improving resource utilization efficiency to minimize environmental impact[165] - The company aims to enhance its sustainability practices, targeting a 50% reduction in waste by 2025[144]

Financial Performance - Revenue for the year ended December 31, 2022, was RMB 1,032.2 million, a decrease of 11.6% compared to RMB 1,168.1 million in 2021[7] - Profit attributable to the company's owners for 2022 was RMB 21.5 million, down 80.8% from RMB 122.7 million in 2021[7] - Basic earnings per share decreased to RMB 0.7, an 81.6% decline from RMB 3.8 in the previous year[7] - Gross profit for the year was RMB 160.5 million, down from RMB 310.5 million in 2021[8] - The company reported a pre-tax profit of RMB 35.7 million, a significant decrease from RMB 163.0 million in the previous year[8] - The company's net profit attributable to shareholders for the year was RMB 23,565,000, a decrease of 80.8% compared to RMB 122,652,000 in the previous year[56] - The total tax expense for the year was RMB 14,212,000, down from RMB 42,974,000 in the previous year, reflecting a significant reduction of 66.9%[60] Cash Flow and Assets - Net cash flow from operating activities was RMB 106.0 million, a decrease of 41.0% from RMB 179.7 million in 2021[7] - Total assets increased by 1.3% to RMB 3,354.4 million from RMB 3,312.1 million in 2021[7] - Cash and cash equivalents decreased from RMB 998,897 thousand in 2021 to RMB 953,950 thousand in 2022, a decline of approximately 4.5%[19] - The company's net asset value decreased from RMB 2,655,588 thousand in 2021 to RMB 2,519,442 thousand in 2022, a decrease of approximately 5.1%[21] - The net cash position as of December 31, 2022, was approximately RMB 828,400,000, a decrease of about RMB 112,800,000 from RMB 941,200,000 at the end of 2021, with a debt-to-equity ratio of 21.5% compared to 16.1% in the previous year[118] Liabilities and Equity - Total liabilities increased from RMB 618,021 thousand in 2021 to RMB 805,726 thousand in 2022, representing a rise of approximately 30.4%[19] - The total equity attributable to owners decreased from RMB 2,630,417 thousand in 2021 to RMB 2,496,366 thousand in 2022, a decrease of approximately 5.1%[21] - The total non-current liabilities decreased from RMB 38,461 thousand in 2021 to RMB 29,243 thousand in 2022, a decrease of approximately 24.0%[21] Revenue Sources and Customer Performance - Revenue from external customers in mainland China decreased to RMB 898,956 thousand in 2022 from RMB 1,056,900 thousand in 2021, representing a decline of approximately 15%[32] - Major customer 1 contributed RMB 185,654 thousand in 2022, down from RMB 200,676 thousand in 2021, a decline of approximately 7.5%[35] - Major customer 2's revenue decreased to RMB 149,546 thousand in 2022 from RMB 191,406 thousand in 2021, reflecting a drop of around 22%[35] Operational Challenges and Market Conditions - The company is facing challenges from the ongoing COVID-19 pandemic and geopolitical tensions, impacting both product sales and supply chain stability[60] - The supply of cow inner skin, a key raw material for collagen protein casings, has tightened this year, leading to increased costs[85] Research and Development - The company has completed several R&D and technical improvement projects aimed at increasing production capacity without expanding facilities, thereby reducing production costs[64] - The company aims to further develop medical collagen products, focusing on higher purity, better activity, and lower costs, while advancing clinical trials for collagen bone filler materials and aesthetic products[128] - The group has developed multiple new skincare products and upgraded product formulations, with new products set to launch soon[103] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.02 per share and a special final dividend of HKD 0.04 per share, unchanged from the previous year[7] - The proposed final ordinary dividend per share is 2.0 HKD cents, consistent with the previous year, totaling RMB 56,279,000, an increase of 7.4% from RMB 52,521,000[55] - The proposed special final dividend per share is 4.0 HKD cents, totaling RMB 112,559,000, up 7.0% from RMB 105,042,000 in the previous year[55] Future Plans and Strategies - The company plans to enhance the production facilities for collagen protein products and adjust marketing strategies, including expanding the marketing team and utilizing online live streaming to improve performance[127] - The group plans to focus on stabilizing quality while expanding production capacity and enhancing efficiency in the collagen casing business in 2023[153] - The group aims to develop new products in the collagen skincare sector, including daily skincare and cleansing products, to broaden the product chain[154] - The company is committed to the continuous development of the health industry and further expanding the technical applications of collagen to provide better returns for shareholders[169]

Financial Performance - Revenue for the six months ended June 30, 2022, was RMB 430.8 million, a decrease of 14.9% compared to RMB 506.0 million in the same period of 2021[7] - Profit attributable to owners for the same period was RMB 13.5 million, down 77.9% from RMB 61.2 million in 2021[7] - Basic earnings per share for the first half of 2022 were RMB 0.42, a decline of 77.9% from RMB 1.90 in the previous year[7] - Gross profit fell by approximately 42.1% to RMB 81.9 million, with a gross margin decline from 28.0% to 19.0% due to decreased demand and increased transportation and procurement costs[30] - The group’s profit before tax for the six months ended June 30, 2022, was RMB 13,535,000, a decrease of 77.9% compared to RMB 61,240,000 for the same period in 2021[131] - Total comprehensive income for the period was RMB 14,989,000, compared to RMB 55,516,000 in 2021, reflecting a significant decrease[87] Cash Flow and Liquidity - Operating cash flow for the period was RMB (13.7) million, an improvement of 91.2% compared to RMB (155.6) million in the first half of 2021[7] - The net cash flow from operating activities for the six months ended June 30, 2022, was RMB (13,690) thousand, a significant improvement from RMB (155,570) thousand in the same period last year[101] - Cash and cash equivalents decreased to RMB 866,532,000 from RMB 998,897,000, showing a reduction in liquidity[94] - The company’s financing activities generated a net cash inflow of RMB 27,847 thousand for the six months ended June 30, 2022[100] Market and Product Development - The company focused on stabilizing product quality and expanding new products in the collagen casing industry during the reporting period[14] - The company has obtained production licenses for new collagen products, including collagen oat milk, and is preparing for large-scale production[1] - The company is expanding its market presence by establishing partnerships with leading manufacturers in South America, Southeast Asia, and the United States[24] - The company aims to enhance production capacity by improving the production line for high-grade natural casings and increasing the sales proportion of new products[56] - In the collagen food sector, the company will enhance equipment and facilities for mass production of products like collagen oatmeal and rice noodles, while also adjusting marketing strategies[57] Challenges and Economic Environment - The domestic market faced challenges due to ongoing COVID-19 restrictions, impacting demand for collagen casings[13] - Revenue decreased by approximately 14.9% to RMB 430.8 million from RMB 506 million in the previous period, primarily due to the impact of COVID-19 and related government control measures[27] - The overall economic environment in China showed signs of recovery, with GDP growth of 2.5% in the first half of 2022[10] Shareholder and Governance - The company has a stock option plan in place to attract and retain qualified personnel, with a total of 323,048,000 shares available for issuance under the plan, representing 10% of the issued shares[61] - The company is committed to maintaining effective communication with shareholders and ensuring their opinions are conveyed to the board[78] - The chairman and CEO roles are separated to ensure effective governance and oversight of the company's operations[76] Expenses and Liabilities - Sales and distribution expenses decreased by approximately 5.4% to RMB 13.9 million, with the ratio of these expenses to revenue increasing from 2.9% to 3.2%[32] - Administrative expenses decreased by approximately 6.1% to RMB 73.2 million, impacted by foreign exchange losses of approximately RMB 6.6 million due to currency depreciation[33] - Current liabilities increased to RMB 821,198,000 from RMB 618,021,000 in the previous year, indicating a rise in short-term financial obligations[93] Research and Development - The company completed several R&D and technical improvement projects aimed at increasing production capacity without expanding facilities[14] - The company is advancing research on medical collagen products to improve purity, activity, and reduce costs, with clinical trials for collagen bone filling materials expected to progress[57] Employee and Management - The company employed approximately 2,690 contract employees, with total employee compensation and benefits amounting to approximately RMB 93,200,000[53] - The total remuneration for key management personnel was RMB 3,731,000 in the first half of 2022, compared to RMB 3,172,000 in 2021, reflecting an increase of 17.6%[152]

Financial Performance - Revenue for the year ended December 31, 2021, was RMB 1,168.1 million, representing a 21.5% increase from RMB 961.6 million in 2020[11]. - Profit attributable to owners of the company was RMB 122.7 million, up 35.1% from RMB 90.8 million in the previous year[11]. - Basic earnings per share increased to RMB 3.8, a rise of 35.7% compared to RMB 2.8 in 2020[11]. - The company reported a net cash flow from operating activities of RMB 179.7 million, down 59.4% from RMB 443.1 million in the previous year[11]. - Total assets increased by 5.8% to RMB 3,312.1 million from RMB 3,130.2 million in 2020[11]. - Gross profit increased by approximately 29.9% from RMB 239 million to RMB 310.5 million, with gross margin rising from 24.9% to 26.6%[41]. - Other income and gains decreased by approximately 24.2% from about RMB 70,600,000 to about RMB 53,600,000, primarily due to a reduction in government subsidies received[42]. - Selling and distribution expenses increased by approximately 12.0% from about RMB 32,700,000 to about RMB 36,600,000, while the ratio of these expenses to revenue decreased from approximately 3.4% to about 3.1%[43]. - Administrative expenses decreased by approximately 3.7% from about RMB 163,700,000 to about RMB 157,700,000, with related losses from the elimination of inefficient production equipment recorded[44]. - Financing costs increased by approximately 114.0% from about RMB 2,500,000 to about RMB 5,300,000, mainly due to increased bank borrowings[45]. Operational Efficiency - Inventory turnover days for raw materials decreased slightly to 37.4 days from 38.0 days[11]. - Finished goods and work-in-progress inventory turnover days improved significantly to 159.6 days, down 37.7 days from 197.3 days[11]. - Accounts receivable turnover days decreased to 56.0 days, down 28.2 days from 84.2 days in the previous year[11]. - Accounts payable turnover days improved to 87.1 days, a reduction of 31.4 days from 118.5 days[11]. - The company has accelerated the automation of its machinery to improve production efficiency and has implemented strict quality control measures to ensure product stability[23]. Product Development and Market Position - In 2021, the company achieved significant progress in new product development, including collagen casings with diameters ranging from 10mm to 50mm, leading to a substantial increase in sales volume and revenue, reaching a five-year high[25]. - The company's main product, collagen casings, maintained its leading position in the domestic market despite challenges from the global pandemic and rising raw material prices, contributing to a recovery in economic benefits[16]. - The production and sales of new products, including high-end natural casing alternatives, have been well received by customers, further expanding the market presence[25]. - The company is actively developing new collagen products, including collagen rice noodles and collagen drinks, which have received positive consumer feedback[27]. - The company has established a strong customer network, providing high-quality collagen products to various well-known food suppliers in China and expanding into international markets[35]. Strategic Initiatives - The company established the Guangxi Shen Guan Collagen Protein Technology Research Institute and a joint R&D center with Huazhong University of Science and Technology to enhance innovation and support future product development[19]. - The company plans to focus on enhancing production capacity and promoting high-quality development across its three major industries in 2022, despite ongoing challenges from the pandemic and rising costs[20]. - The group aims to enhance production capacity and product quality in the collagen sausage casing industry, focusing on stabilizing product quality and addressing bottlenecks in production lines[65]. - The group plans to increase the sales proportion of new products, including high-end natural casing alternatives, to meet the changing demands of the meat sausage industry[65]. - The group is committed to advancing the development of the "Luxeena" product line in the collagen skincare sector, with plans to launch multiple new product series[66]. Economic Environment - The overall GDP of China reached RMB 114.4 trillion in 2021, growing by 8.1% year-on-year, which reflects a stable economic environment beneficial for the company's growth[22]. - The total retail sales of consumer goods in China reached RMB 44.1 trillion in 2021, growing by 12.5% compared to the previous year, which positively impacted the demand for collagen casings[22]. - The group anticipates continued economic growth in China, supported by stable macroeconomic policies and a focus on expanding domestic demand[62]. - The company recognizes the challenges posed by the ongoing COVID-19 pandemic and aims to navigate the complexities of the external environment while seizing market opportunities[62]. Governance and Management - The company has maintained a high level of board independence, with over one-third of board members being independent non-executive directors[74]. - The board has authorized senior management to oversee the group's management and administrative responsibilities, with significant transactions requiring board approval[74]. - The company has adopted a board diversity policy, with eight board members, including one female member[81]. - The company has established a risk management framework that includes a board, an audit committee, and a risk management team to oversee risk management and internal control systems[121]. - The company emphasizes continuous professional development for all directors, ensuring they are updated on regulatory changes and the company's strategic developments[91]. Shareholder Relations and Dividends - The company has adopted a dividend policy that allows for annual dividends to be paid to shareholders, subject to board approval and legal regulations, based on the group's profitability and operational stability[84]. - The company reported a proposed final dividend of HKD 0.02 per ordinary share and a special final dividend of HKD 0.04 per ordinary share, subject to shareholder approval[170]. - The board may also declare special dividends in addition to the annual dividends, considering factors such as actual and expected financial performance, retained earnings, and debt-to-equity ratio[84]. Ownership Structure - The board of directors includes key executives such as the chairperson and president, Ms. Zhou Yaxian, who holds a controlling interest of 69.89% in the company[193]. - The company has a complex ownership structure with multiple layers of control among its major shareholders[200]. - The total shares held by major shareholders indicate a strong concentration of ownership within a few entities[197].

Financial Performance - Revenue for the six months ended June 30, 2021, was RMB 506.0 million, representing a 39.0% increase compared to RMB 364.1 million in the same period of 2020[8]. - Profit attributable to owners of the company for the same period was RMB 61.2 million, a significant increase of 125.6% from RMB 27.1 million in 2020[8]. - Basic earnings per share for the first half of 2021 was RMB 1.9, up 126.2% from RMB 0.84 in the previous year[8]. - Gross profit rose by approximately 46.9% from RMB 96,300,000 to RMB 141,500,000, with gross margin improving from approximately 26.5% to 28.0%[30]. - Profit before tax increased to RMB 76,370 thousand, a 134% rise compared to RMB 32,506 thousand in the previous year[89]. - Net profit for the period was RMB 60,506 thousand, which is a 165% increase from RMB 22,825 thousand in the prior year[89]. - The total tax expense for the period was RMB 15,864,000, an increase of 64.1% compared to RMB 9,681,000 in the previous year[121]. Assets and Liabilities - The total assets as of June 30, 2021, amounted to RMB 3,216.4 million, compared to RMB 3,130.2 million at the end of 2020[8]. - Total equity as of June 30, 2021, is RMB 2,582,953, a decrease from RMB 2,688,718 as of December 31, 2020, representing a decline of approximately 3.93%[95]. - Current liabilities increased to RMB 596,509 thousand from RMB 403,237 thousand at the end of the previous year[93]. - The company’s total liabilities decreased to RMB 1,193,474 as of June 30, 2021, from RMB 1,215,000 as of December 31, 2020, reflecting a decrease of approximately 1.77%[97]. - The company has maintained its issued share capital at RMB 27,807 as of June 30, 2021, consistent with the previous reporting period[97]. Market and Product Development - The company has focused on product diversification and quality improvement in collagen casings, leading to a significant increase in sales volume compared to the previous year[14]. - The company has actively expanded its market for collagen casings and initiated new product sales, enhancing production efficiency through automation[14]. - The company is committed to developing new products, with positive customer feedback on its newly developed high-grade natural casing products[14]. - The company launched new collagen products, including collagen rice noodles and beverages, which have begun initial market development and promotion[18]. - The group expects to continue expanding its market presence and product offerings in the edible collagen sector[108]. Operational Efficiency - Sales cost increased by approximately 36.1% from RMB 267,800,000 to RMB 364,500,000, with raw material costs rising by approximately 53.1% to RMB 162,700,000[29]. - Sales and distribution expenses increased by approximately 22.1% from RMB 12,100,000 to RMB 14,700,000, while the ratio of these expenses to revenue decreased from approximately 3.3% to 2.9%[34]. - The company has implemented strict management and supervision in food production to ensure product quality and safety during the pandemic[14]. Cash Flow and Financing - The net cash flow from operating activities for the six months ended June 30, 2021, was RMB (155,595), compared to RMB 109,305 for the same period in 2020, indicating a significant decrease in cash flow[99]. - Cash and cash equivalents at the end of June 30, 2021, amounted to RMB 183,792, down from RMB 315,281 at the end of June 30, 2020, reflecting a decrease of approximately 41.8%[101]. - New bank borrowings for the six months ended June 30, 2021, totaled RMB 426,235, an increase from RMB 154,878 in the same period of 2020, indicating a rise in financing activities[99]. - Total bank borrowings increased by approximately RMB 277.7 million to RMB 426.1 million, with a debt-to-equity ratio of 16.6%[44]. Corporate Governance - The company has complied with all corporate governance codes as per the listing rules during the reporting period[78]. - The company is considering the feasibility of appointing a separate CEO to enhance governance structure[78]. - The audit committee reviewed the interim results and confirmed adherence to the relevant accounting standards[82]. Shareholder Information - As of June 30, 2021, the major shareholder, Ms. Zhou, holds 2,257,628,000 shares, representing 69.89% of the issued share capital[69]. - The company’s major shareholder, Fortune Holdings, owns 1,936,434,000 shares, which is 59.94% of the issued share capital[74]. - The company has a total of 3,230,480,000 issued shares, unchanged from the previous year[135].

Financial Performance - Total revenue for the year ended December 31, 2020, was RMB 961.6 million, a decrease of 3.6% compared to RMB 997.5 million in 2019[15] - Profit attributable to owners of the company increased by 20.3% to RMB 90.8 million from RMB 75.4 million in the previous year[15] - Basic earnings per share rose by 21.7% to RMB 2.8 from RMB 2.3 in 2019[15] - Net cash flow from operating activities increased by 39.4% to RMB 447.7 million, up from RMB 321.1 million in 2019[15] - Total assets increased by 1.5% to RMB 3,130.2 million from RMB 3,083.5 million in 2019[15] - Revenue decreased by approximately 3.6% from RMB 997.5 million to RMB 961.6 million due to the impact of COVID-19[49] - Gross profit increased by approximately 3.0% from RMB 232.2 million to RMB 239.0 million, with gross margin rising from 23.3% to 24.9%[51] - Other income and gains rose by approximately 17.7% from RMB 60.0 million to RMB 70.6 million, including government subsidies of RMB 30.6 million[52] - Selling and distribution expenses decreased by about 7.8% from RMB 35.4 million to RMB 32.7 million, representing 3.4% of revenue[53] - Administrative expenses decreased by approximately 2.1% from RMB 167.3 million to RMB 163.7 million, with charitable donations increasing to RMB 8.8 million[56] - Financing costs increased by approximately 48.6% from RMB 1.7 million to RMB 2.5 million due to increased bank borrowings[57] - Income tax expense for the year was approximately RMB 21.7 million, compared to RMB 17.3 million in the previous year[59] Product Development and Market Expansion - The company maintained its leading position in the domestic collagen casing market while expanding into collagen food, skincare products, and medical devices[21] - The company has launched new collagen products, including collagen rice noodles, drinks, and beef collagen ingredients, which have received consumer recognition during initial market development[24] - The company plans to continue diversifying its product offerings in line with national industrial policies and local development plans[20] - Revenue from new products, including collagen food, skincare products, and medical collagen, showed significant growth compared to last year, indicating successful market development[36] - The company aims to expand its collagen product lines, including medical collagen and skincare products, with plans for new product launches and increased marketing efforts[46] - The company is focusing on developing high-end collagen casings to solidify its leading position in the domestic market and has completed batch production of a new product that serves as a substitute for traditional pig casings[25] - The company is implementing a diversified development strategy, with significant investments in new products and technologies during the 13th Five-Year Plan period, laying a solid foundation for the 14th Five-Year Plan[29] - The company has made substantial progress in new product development, with collagen rice noodles, drinks, and beef collagen ingredients entering the market, and new beef tendon products in trial sales[40] Corporate Governance and Management - The board of directors consists of eight members, including four executive directors, one non-executive director, and three independent non-executive directors[85] - The company recognizes the importance of high corporate governance standards to enhance performance and transparency[83] - The chairman and CEO roles are separated, with the chairman overseeing the overall operations of the group[92] - The company has established a nomination committee to identify and recommend qualified candidates for the board of directors since September 19, 2009[93] - The board diversity policy has been adopted to enhance operational quality by ensuring a balance of skills, experience, and perspectives among board members[98] - The audit committee was established on September 19, 2009, to oversee the appointment and independence of external auditors and review financial reporting integrity[113] - The audit committee consists of three independent non-executive directors, with Mr. Xu Rongguo serving as the chairman, possessing professional accounting qualifications[113] - The company has established a risk management framework involving the board of directors, audit committee, and risk management team to oversee risk management and internal control systems[136] - The company emphasizes maintaining open communication with investors through various channels, including seminars with media, analysts, and fund managers[141] Financial Position and Investments - As of December 31, 2020, cash and cash equivalents, along with pledged deposits and time deposits, amounted to approximately RMB 1,176,900,000, an increase of approximately RMB 262,800,000 from the end of 2019[63] - Total bank borrowings as of December 31, 2020, were approximately RMB 148,400,000, an increase of approximately RMB 58,800,000 from the previous year[63] - Net cash position as of December 31, 2020, was approximately RMB 1,028,500,000, an increase of approximately RMB 204,000,000 from the end of 2019[64] - Capital expenditures for the year were approximately RMB 80,400,000, primarily for the acquisition of properties, plants, and equipment[69] - Estimated capital expenditures for 2021 are approximately RMB 100,000,000, aimed at upgrading production facilities and expanding new business operations[69] Risk Factors and Compliance - The company faces risks related to the stability and sufficiency of raw material supply, which can impact production volume and costs[175] - Domestic demand fluctuations in China could adversely affect the company's performance and profitability, as sales in China account for a significant portion of total revenue[176] - The company is subject to various legal regulations, including the Food Safety Law of the People's Republic of China, which significantly impacts its operations[179] - The company has established internal rules and procedures to ensure compliance with applicable laws and regulations in its operations[179] Social Responsibility and Community Engagement - The company made charitable donations totaling RMB 8,800,000 during the year[187] - The company emphasizes the importance of human resources for long-term business success and development, ensuring employee compensation is market-competitive[180] - The company maintains close relationships with customers and suppliers, actively seeking feedback and suggestions through various channels[180]

Financial Performance - Revenue for the first half of 2020 was RMB 364.1 million, a decrease of 5.9% compared to RMB 386.8 million in the same period of 2019[10]. - Profit attributable to owners of the company was RMB 27.1 million, down 13.5% from RMB 31.4 million year-on-year[10]. - Basic earnings per share decreased to RMB 0.84, a decline of 13.4% from RMB 0.97 in the previous year[10]. - The group's revenue decreased by approximately 5.9% from RMB 386.8 million in the previous period to RMB 364.1 million in the current period, impacted by delays in customer operations due to the COVID-19 pandemic[29]. - Gross profit decreased by approximately 6.0% from RMB 102.5 million in the previous period to RMB 96.3 million in the current period, maintaining a gross margin of 26.5%[31]. - Net profit for the period was RMB 22,825 thousand, a decrease of 15.3% compared to RMB 26,885 thousand in 2019[95]. - Total comprehensive income for the period was RMB 18,322 thousand, down 37.0% from RMB 29,097 thousand in 2019[95]. - Basic and diluted earnings per share were RMB 0.84, compared to RMB 0.97 in the previous year[100]. - The profit attributable to the company's owners decreased by approximately 13.5% from RMB 31,400,000 to RMB 27,100,000[41]. Cash Flow and Liquidity - Operating cash inflow increased by 4.4% to RMB 109.3 million, compared to RMB 104.7 million in the first half of 2019[10]. - Cash flow from operating activities was RMB 98,837,000, a decrease from RMB 109,611,000 in the previous year[114]. - The company reported a net decrease in cash and cash equivalents of RMB 58,346,000, contrasting with an increase of RMB 149,216,000 in the previous year[120]. - Cash and cash equivalents, along with pledged and fixed deposits, totaled approximately RMB 1,003,400,000, decreasing to RMB 897,400,000 after dividend payments[42]. - The company’s cash and bank balances were RMB 240,041,000, compared to RMB 154,358,000 in the previous year, indicating improved liquidity[120]. Expenses and Costs - Sales costs fell by about 5.8% from RMB 284.3 million in the previous period to RMB 267.8 million in the current period, with inventory provisions and write-offs included[30]. - Administrative expenses increased by approximately 13.6% from RMB 75,500,000 to RMB 85,700,000, with charitable donations of RMB 8,200,000 made during the period[35]. - Financing costs rose by approximately 238.1% from RMB 383,000 to RMB 1,300,000 due to increased bank borrowings[36]. - Sales and distribution expenses decreased by approximately 15.1% from RMB 14.2 million in the previous period to RMB 12.1 million in the current period, with the ratio to revenue declining from about 3.7% to 3.3%[34]. Assets and Liabilities - The total assets amounted to RMB 3,089.2 million, slightly up from RMB 3,083.5 million in the previous year[10]. - Total liabilities increased to RMB 471,532 thousand from RMB 252,779 thousand at the end of 2019[103]. - Total equity decreased to RMB 2,617,665 thousand from RMB 2,776,427 thousand at the end of 2019[107]. - Non-current assets totaled RMB 1,506,050 thousand as of June 30, 2020, down from RMB 1,612,749 thousand at the end of 2019[103]. Product Development and Market Strategy - The company plans to expand into the healthcare sector by accelerating the production of medical supplies and collagen-based products[13]. - New product development includes collagen food and skincare products, aiming to broaden the application of collagen in the health industry[13]. - The group has developed new collagen products, including collagen rice noodles and collagen beverages, which have begun initial market promotion through online platforms[18]. - The company aims to implement a product diversification strategy focusing on collagen-based food, health products, cosmetics, and medical materials, with an emphasis on quality and market stability[56]. - In the food sector, the company plans to expand production capacity for collagen rice noodles, collagen drinks, and bovine collagen ingredients, targeting significant revenue growth through enhanced advertising and sales strategies[58]. Governance and Compliance - The company has complied with all corporate governance codes as per the listing rules during the reporting period[84]. - The audit committee, consisting of three independent non-executive directors, reviewed the interim results and confirmed compliance with applicable accounting standards[88]. - The company is considering the feasibility of appointing a separate CEO to enhance governance structure[84]. - The chairman ensures effective communication with shareholders and oversees the board's operations[86]. Research and Development - The company is focusing on technological development in collagen products to achieve transformation and upgrade in the health industry[16]. - The company is committed to advancing research in medical collagen, aiming to obtain multiple production licenses for medical devices by the end of 2020 and seeking EU certifications for its medical collagen products[59]. Shareholder Information - The company holds a significant ownership structure, with a major shareholder controlling approximately 69.73% of the issued share capital[71]. - Ms. Zhou holds 65.45% equity in Fortune Limited through her complete ownership of Hong Kong Shen Guan Biotechnology Investment Limited and its subsidiary, Crown Sheng Limited[74]. - Datuk Sri Liu holds 20.84% equity in Fortune Limited through Wealthy Safe Management Limited, which owns 78,936,000 shares[74]. Other Income and Gains - Other income and gains increased by approximately 70.5% from RMB 21.9 million in the previous period to RMB 37.4 million in the current period, including government subsidies of RMB 16.3 million[33]. - Bank interest income increased to RMB 15,682 thousand from RMB 12,194 thousand in the previous year, reflecting a growth of 28.5%[136]. - The group generated other income and gains of RMB 16,280 thousand from government grants, significantly up from RMB 2,622 thousand in 2019[136].