Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 87,896,000, an increase of 6.1% compared to HKD 82,396,000 for the same period in 2023[1] - Gross profit for the same period was HKD 33,682,000, representing a 15.7% increase from HKD 29,128,000 in 2023[1] - The net loss for the period was HKD 10,607,000, an improvement from a net loss of HKD 15,009,000 in the previous year, indicating a reduction of 29.9%[1] - The group reported external customer revenue of HKD 87,896 thousand for the six months ended June 30, 2024, an increase from HKD 82,396 thousand in the same period of 2023, representing a growth of approximately 6.1%[17] - The group incurred a pre-tax loss of HKD 10,607 thousand for the six months ended June 30, 2024, compared to a pre-tax loss of HKD 15,009 thousand for the same period in 2023, showing an improvement of about 29.8%[12] - The loss for the period decreased by approximately HKD 4,400,000 to about HKD 10,600,000, compared to HKD 15,000,000 for the same period in 2023[35] Expenses and Liabilities - Administrative expenses rose to HKD 19,346,000, up 54.1% from HKD 12,568,000 in the prior period[1] - Current liabilities totaled HKD 1,182,901,000, slightly up from HKD 1,163,890,000 at the end of 2023[4] - The total liabilities as of June 30, 2024, were HKD 1,206,096 thousand, up from HKD 1,188,132 thousand as of December 31, 2023, reflecting a rise of approximately 1.5%[14] - The company reported a total debt of approximately HKD 1,166,500,000 as of June 30, 2024, compared to approximately HKD 1,148,400,000 as of December 31, 2023[44] Assets and Equity - Total assets increased to HKD 101,456,000 as of June 30, 2024, compared to HKD 86,071,000 as of December 31, 2023[4] - The total trade and other payables amounted to 552,764,000 HKD as of June 30, 2024, compared to 547,345,000 HKD at the end of 2023[32] - The company’s equity attributable to owners showed a capital deficit of approximately HKD 893,900,000 as of June 30, 2024, compared to approximately HKD 890,300,000 as of December 31, 2023[43] Operational Highlights - The group processed approximately 176,200 tons of sugarcane, yielding about 11,100 tons of raw sugar and about 9,100 tons of molasses, with raw sugar production increasing by approximately 2.6%[38] - The group sold approximately 6,251 tons of raw sugar and about 10,509 tons of molasses, with revenues from raw sugar and molasses increasing by approximately JMD 145,400,000 (about HKD 5,500,000)[36] - Jamaica remains the primary market for the group, with local sales accounting for 100% of total sales during the period[39] Challenges and Future Outlook - The group faced challenges in sugarcane supply due to labor shortages and rising costs of fertilizers and pesticides, impacting overall production[38] - The sugar business segment anticipates a decrease in revenue and gross profit in the second half of 2024 due to damage from Hurricane "Beryl," which impacted sugarcane production[55] - The group plans to increase local sugar prices in Jamaica in August 2024 to address rising production costs, including labor costs[55] Cash Flow and Financial Management - The company has implemented measures to manage cash flow pressures, including obtaining a support letter from a related party to ensure no repayment of payables until the company can meet obligations to other creditors[47] - As of June 30, 2024, the company's cash and cash equivalents were approximately HKD 35,600,000, a decrease of approximately HKD 1,900,000 from HKD 37,500,000 as of December 31, 2023[46] Dividends and Investments - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[23] - The group did not make any significant investments during the periods ending June 30, 2024, and December 31, 2023[54] Compliance and Governance - The company's unaudited consolidated interim financial statements for the six months ended June 30, 2024, have been reviewed and approved by the board on August 30, 2024[62] - The audit committee confirmed that the interim financial performance is prepared in accordance with applicable accounting standards and has made appropriate disclosures[62]

Production Costs - The average production cost for raw sugar in 2023 was approximately JMD 179,000 (about HKD 9,100), an increase of about 26.2% from JMD 142,000 (about HKD 7,200) in 2022[11] - The average production cost for molasses in 2023 was approximately JMD 26,900 (about HKD 1,400), reflecting a 20.0% increase from JMD 22,400 (about HKD 1,100) in 2022[11] - Labor costs, which account for about 10% of production costs, are expected to rise further in 2024 due to union wage adjustment demands[15] Financial Performance - The company reported a pre-tax loss of HKD 34,633,000 for the year 2023, compared to a pre-tax loss of HKD 10,077,000 in 2022[133] - The company reported a pre-tax loss of HKD 58,267,000 for the year ending December 31, 2023[184] - The total loss before tax for the year was HKD 45,489,000[188] - The company incurred a foreign exchange loss of HKD 12,991,000 in 2023, compared to a gain of HKD 11,607,000 in 2022[133] - Employee costs, including directors' remuneration, totaled HKD 47,587,000 in 2023, up from HKD 42,170,000 in 2022, representing an increase of approximately 12.5%[133] - The cost of goods sold was HKD 120,703,000 in 2023, slightly down from HKD 121,989,000 in 2022, indicating a decrease of about 1.1%[133] - The company’s total revenue from Jamaica was HKD 142,298,000 in 2023, compared to HKD 132,860,000 in 2022, reflecting an increase of approximately 7.8%[159] - The total revenue from the sugar business for the year ended December 31, 2022, was HKD 142,835,000[188] Cash Flow and Assets - As of December 31, 2023, the company's cash and cash equivalents decreased to approximately HKD 37,500,000 from HKD 44,700,000 in 2022, a reduction of about HKD 7,200,000[18] - The net cash inflow from operating activities for the year was approximately HKD 5,900,000, while cash outflows from investing and financing activities were HKD 2,000,000 and HKD 9,900,000 respectively[18] - Total assets as of December 31, 2023, amounted to HKD 86,071,000, with total liabilities reaching HKD 1,188,132,000[184] - The total assets of the company amounted to HKD 107,040,000[188] - The company has a total of HKD 89,881,000 in corporate and other unallocated assets[188] Employee and Governance - The total number of full-time employees increased to 142 in 2023 from 137 in 2022, while temporary employees decreased to 522 from 525[24] - The company emphasizes employee welfare by establishing policies for fair and competitive compensation, recruitment, promotion, and a healthy work environment[64] - The board consists of eight members, with three being independent non-executive directors, representing over one-third of the board[95] - The company has established a remuneration policy that reviews the compensation of directors and senior management based on operational performance and market statistics[110] - The company has a gender ratio of 85.4% male and 14.6% female in its employee team as of December 31, 2023[197] - The board diversity policy includes measurable targets for gender, age, skills, and experience[193] Corporate Strategy and Governance - The company is committed to enhancing shareholder value and ensuring sustainable development while maintaining stable dividends[37] - The corporate governance standards adopted are seen as crucial for achieving the company's objectives[37] - The group believes that success relies on the support of key stakeholders, including employees, customers, suppliers, and shareholders[35] - The company has adopted a code of conduct for its directors regarding securities trading, in line with the Listing Rules Appendix 10[88] - The company plans to review its board composition annually to ensure diversity and effectiveness in governance[175] Environmental and Social Responsibility - The group emphasizes responsible environmental practices in sugar production, aiming for long-term economic benefits[33] - The group has implemented a systematic approach to monitor product quality throughout the production process[36] Investments and Financial Instruments - The company has not made any significant investments during the reporting year[22] - The company has not entered into any arrangements or financial instruments to hedge against potential foreign exchange risks during the reporting year[21] - There were no significant investments or capital asset plans for the review year[53] Customer and Supplier Relations - The company has a customer service team to handle inquiries and complaints regarding product quality[36] - The group reported a total procurement amount from the top five suppliers accounting for approximately 31.4% of the total procurement, with the largest supplier contributing about 7.5%[69] Miscellaneous Income - Interest income increased to HKD 220,000 in 2023 from HKD 103,000 in 2022, representing a significant growth[164] - Miscellaneous income rose to HKD 4,381,000 in 2023 compared to HKD 3,893,000 in 2022, indicating an increase of approximately 12.5%[164] - Total other income net amount for 2023 was HKD 4,865,000, up from HKD 4,492,000 in 2022, reflecting a growth of about 8.3%[164] - Expected credit loss on trade receivables was HKD 303,000 in 2023, marking the first instance of this expense[164] - Impairment loss on property, plant, and equipment was HKD 1,179,000 in 2023, slightly up from HKD 1,176,000 in 2022[164]

Financial Performance - For the year ended December 31, 2023, the company reported total revenue of HKD 142,298,000, a slight decrease of 0.4% compared to HKD 142,835,000 in 2022[2] - The gross profit for the year was HKD 21,595,000, representing an increase of 3.6% from HKD 20,846,000 in the previous year[2] - The net loss for the year was HKD 58,267,000, which is a 28.1% increase compared to a net loss of HKD 45,489,000 in 2022[2] - The basic and diluted loss per share for the year was HKD 1.88, compared to HKD 1.51 in 2022, indicating a 24.5% increase in loss per share[3] - The company reported a total comprehensive loss of HKD 48,929,000 for the year, an improvement from a total comprehensive loss of HKD 64,667,000 in 2022[3] - The pre-tax loss for the year ended December 31, 2023, was HKD 58,267,000, compared to a pre-tax loss of HKD 45,489,000 in 2022, indicating a worsening of approximately 28.2%[20] - Loss before tax increased by approximately HKD 12,800,000 to about HKD 58,300,000, primarily due to an increase in fair value losses on biological assets and financial costs[44] - The net loss for the segment was approximately 57,900,000 HKD in 2023, an increase of about 17,200,000 HKD from 2022, primarily due to foreign exchange losses and changes in the fair value of biological assets[58] Assets and Liabilities - Total assets decreased to HKD 86,071,000 from HKD 107,040,000 in 2022, reflecting a decline of 19.6%[5] - The total assets as of December 31, 2023, amounted to HKD 86,071,000, down from HKD 107,040,000 in 2022, indicating a decrease of approximately 19.6%[20] - The total liabilities as of December 31, 2023, were HKD 1,188,132,000, an increase from HKD 1,160,172,000 in 2022, representing an increase of about 2.4%[20] - As of December 31, 2023, the company had current liabilities of HKD 1,083,590,000 and total liabilities of HKD 1,102,061,000, indicating significant uncertainty regarding the company's ability to continue as a going concern[97] Financial Support and Restructuring - The company has received a commitment from its major shareholder to provide ongoing financial support, ensuring liquidity through at least December 31, 2025[8] - The company is actively working on improving its financial performance to negotiate better terms during debt restructuring[8] - The company continues to prepare its financial statements on a going concern basis despite significant losses and liabilities[7] Segment Performance - For the year ended December 31, 2023, the total revenue from the support services segment was HKD 142,298,000, compared to HKD 142,835,000 in 2022, reflecting a slight decrease of 0.4%[19] - The ethanol business segment reported a performance loss of HKD 1,053,000 for the year ended December 31, 2023, compared to a loss of HKD 1,167,000 in 2022, showing an improvement of about 10%[20] - The support services segment recorded no revenue in both 2023 and 2022, severely impacted by the rejection of a resolution related to supply agreements at a special shareholders' meeting[62] Capital Expenditure and Investments - The total capital expenditure for property, plant, and equipment in the support services segment was HKD 2,252,000 for the year ended December 31, 2023[24] - The company invested approximately HKD 2,252,000 in the acquisition of property, plant, and equipment during the year[34] - The group did not engage in any significant acquisitions or disposals of subsidiaries or associates during the review period[72] - There were no significant future investment or capital asset plans reported for the group during the review period[74] - The group has not made any significant investments in the fiscal years ending December 31, 2023, and December 31, 2022[79] Market Conditions and Future Outlook - The global supply of raw sugar is expected to remain stable in 2024, with an anticipated increase in global sugar consumption[81] - The Jamaican government will continue to support the local sugar industry by providing funding for road maintenance and restricting raw sugar imports[82] - Labor costs, which account for approximately 10% of production costs, are expected to increase due to union wage adjustment demands, potentially raising production costs in 2024[81] - The group anticipates that raw sugar prices will see only slight increases in 2024 due to limited further price hikes following two increases in 2023[81] Governance and Compliance - The group has complied with the corporate governance code, except for certain deviations regarding insurance arrangements for directors[87] - The company has adopted a code of conduct for directors' securities transactions, which complies with the standards set out in the listing rules[98] - No purchases, sales, or redemptions of the company's listed securities were made by the company or its subsidiaries during the year[99] Employee Costs - Total employee costs for the group increased to approximately HKD 47,600,000 in 2023, up from approximately HKD 42,200,000 in 2022, driven by a 25.3% increase in weekly wages due to the government's minimum wage adjustment[71]

智通财经APP讯，华联国际(00969)发布公告，预期集团于截至2023年12月31日止年度将取得亏损净额约5800万港元，而2022年度则取得亏损净额约4500万港元。 董事会认为，预期集团报告年内亏损净额较上年增加约1300万港元，主要由于以下因素：财务成本增加约2500万港元，乃由于年内附属公司功能货币贬值，导致换算附属公司业绩及财务状况时产生的外汇亏损增加约2500万港元所致;生物资产公允值变动亏损增加约500万港元，主要由于年内因犁耕低产甘蔗区以将新鲜养分带到土地表面，同时掩埋杂草及甘蔗残渣以分解新的养分灌入土壤，从而导致甘蔗面积减少约600公顷所致;毛利增加约100万港元，乃由于年内原糖及糖蜜平均售价上升导致毛利率增加约1%;年内有关当地销售的包装成本减少及出口销售下降时出口相关开支减少，行政费用因此减少约600万港元;及由于年内物业、厂房及设备备件存货撇减减少约1000万港元，导致其他经营开支减少约1000万港元所致。 ...

Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 82,396,000, an increase of 2.02% compared to HKD 80,759,000 in the same period of 2022[2] - Gross profit for the same period was HKD 29,128,000, significantly up from HKD 13,501,000, reflecting a gross margin improvement[2] - The company reported a loss before tax of HKD 15,009,000, compared to a loss of HKD 997,000 in the prior year, indicating a substantial increase in losses[2] - Basic and diluted loss per share for the period was HKD 0.4689, compared to HKD 0.0047 in the previous year[2] - Total comprehensive loss for the period was HKD 6,016,000, a decrease from HKD 18,643,000 in the same period last year, driven by foreign exchange gains[3] - The group recorded a consolidated net loss of approximately HKD 15,009,000 for the period, compared to a net loss of HKD 997,000 for the same period in 2022[10] - The loss for the period increased by approximately HKD 14,000,000 to about HKD 15,000,000, primarily due to increased financial costs of approximately HKD 31,400,000[50] Assets and Liabilities - Non-current assets as of June 30, 2023, totaled HKD 6,509,000, up from HKD 6,368,000 at the end of 2022[4] - Current assets increased to HKD 115,658,000 from HKD 100,672,000, primarily due to higher inventory levels[4] - Total liabilities amounted to HKD 1,059,148,000, slightly up from HKD 1,053,132,000 at the end of 2022[5] - The company’s equity attributable to owners decreased to HKD (859,358,000) from HKD (854,708,000) year-over-year[5] - Current liabilities net amount was approximately HKD 1,042,517,000, slightly up from HKD 1,035,328,000 as of December 31, 2022[10] - The total assets as of June 30, 2023, amounted to HKD 122,167,000, up from HKD 107,040,000 as of December 31, 2022, indicating an increase of 14.14%[19] - The total liabilities increased to HKD 1,181,315,000 as of June 30, 2023, from HKD 1,160,172,000 as of December 31, 2022, reflecting a rise of 1.82%[19] Cash Flow - The net cash used in operating activities improved to HKD 3,264,000 from a net cash used of HKD 6,089,000 in the same period last year[8] - The net cash used in investing activities was HKD 2,086,000, a slight improvement from HKD 2,615,000 in 2022[8] - The net cash used in financing activities remained stable at HKD 2,104,000 compared to HKD 2,111,000 in the previous year[8] - The total cash and cash equivalents at the end of the period decreased to HKD 43,438,000 from HKD 73,217,000 in 2022, reflecting a decline of 40.6%[8] - As of June 30, 2023, the bank deposits and cash balance were approximately HKD 43,400,000, a decrease of about HKD 1,300,000 from December 31, 2022[66] Operational Performance - Operating income before changes in working capital for the six months ended June 30, 2023, was HKD 11,089,000, a decrease of 8.3% compared to HKD 12,091,000 in 2022[8] - The company continues to explore new strategies for market expansion and product development, although specific details were not disclosed in the report[6] - The company is focusing on improving operational performance to negotiate better terms during loan restructuring[12] - The company anticipates that production will remain below last year's levels due to rising input costs, which may exert downward pressure on revenue, gross profit, and operating profit in the second half of the year[76] Market and Sales - Jamaica remains the primary market for the company, with local sales accounting for 100.0% of total sales as of June 30, 2023, compared to 87.1% for the same period in 2022[56] - The average selling price of raw sugar increased by approximately 30.6%, while the sales volume decreased by about 22.2%[54] - The total revenue from raw sugar increased by approximately JMD 16,400,000 (about HKD 1,600,000) due to the rise in average selling prices[54] - The group sold approximately 6,270 tons of raw sugar and 10,900 tons of molasses during the period, compared to 8,100 tons of raw sugar and 13,700 tons of molasses in the previous year[53] - The average price of molasses increased by approximately 33.8% despite a decrease in sales volume of about 26.1%[54] Shareholder and Governance - The company did not declare an interim dividend for the period ended June 30, 2023, consistent with the previous year[30] - The company has not entered into any non-exempt continuing connected transactions during the reporting period[48] - The company has maintained compliance with the corporate governance code, with some deviations noted[86] - The audit committee has reviewed the unaudited consolidated interim financial statements for the six months ended June 30, 2023, which were approved by the board on August 31, 2023[90] Future Outlook - The ethanol business in Benin remains on hold due to unresolved land lease terms, impacting the company's ability to produce bioethanol[62] - The ethanol plant construction will remain suspended in the second half of 2023 while the company determines an appropriate alternative business plan[80] - The report contains forward-looking statements regarding the group's financial condition and operational performance, which may involve known and unknown risks and uncertainties[93]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 HUA LIEN INTERNATIONAL (HOLDING) COMPANY LIMITED 華 聯 國 際（ 控 股 ）有 限 公 司 * （於開曼群島註冊成立之有限公司） （股份代號：969） 截至二零二三年六月三十日止六個月之 中期業績公告 華聯國際（控股）有限公司（「本公司」）董事會（「董事會」）欣然公佈本公司及其附屬 公司（「本集團」）截至二零二三年六月三十日止六個月之未經審核綜合中期業績連同 比較數字如下： 簡明綜合損益及其他全面收益表 截至二零二三年六月三十日止六個月 截至六月三十日止六個月 附註 二零二三年 二零二二年 （未經審核） （未經審核） 千港元 千港元 ...

Financial Performance - The group reported a total revenue of approximately HKD 2,338,000 for the acquisition of properties, plants, and equipment during the year, compared to HKD 1,226,000 in the previous year[21]. - The group reported a net loss of HKD 45,489,000 for the year ended December 31, 2022, and a net cash outflow from operating activities of HKD 44,447,000[186]. - As of December 31, 2022, the group's current liabilities and total liabilities were HKD 1,035,328,000 and HKD 1,053,132,000, respectively, indicating significant uncertainty regarding the group's ability to continue as a going concern[186]. Dividend Policy - The group did not recommend any dividend distribution for the year ended December 31, 2022[8]. - The board considers various factors, including operational performance and financial condition, when deciding on future dividend payments[170]. - The company will continue to review its dividend policy and reserves the right to update or amend it at any time[176]. - The board of directors has adopted a dividend policy effective from January 1, 2019, to guide the declaration and payment of dividends[167]. Corporate Governance - The company has complied with the corporate governance code, with some deviations noted[42]. - The board emphasizes the importance of maintaining high standards of corporate governance to enhance shareholder value[40]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules[36]. - The board consists of eight directors, with three being independent non-executive directors, ensuring over one-third independence[87]. - The company has established mechanisms to ensure the board receives independent views and opinions[87]. - The nomination committee conducted a thorough due diligence process and recommended the appointment of Mr. Zhang Qi as an executive director and Mr. Zhang Zhaogang and Ms. Chen Si as non-executive directors[94]. - The company has established a shareholder communication policy to ensure effective communication with shareholders and stakeholders[178]. Risk Management and Internal Controls - The internal audit department conducted a selective review of the effectiveness of the risk management and internal control systems across major subsidiaries in operational, financial, and compliance monitoring[164]. - The audit committee assessed the effectiveness of the internal control systems and risk management processes[156]. - The group has implemented policies and procedures to assess and improve the effectiveness of its risk management and internal control systems[164]. - The audit committee oversees the investigation of whistleblowing cases and reports findings to the board[160]. Stakeholder Relationships - The group emphasizes the importance of stakeholder relationships, including employees, customers, suppliers, and shareholders, for its success[13]. - The group has a strong focus on providing a fair and competitive compensation structure for its employees[14]. - The group maintains a whistleblowing policy to allow employees, customers, suppliers, and other stakeholders to report any actual or suspected misconduct[160]. Board Composition and Diversity - The board of directors consists of three executive directors, two non-executive directors, and three independent non-executive directors, providing a diverse range of business and professional expertise[53]. - The board currently has one female director, representing 12.5% of the board, and 37.5% of independent non-executive directors[117]. - The company promotes diversity at all levels of the employee team, ensuring equal training and career development opportunities[117]. - The nomination committee will continue to monitor the implementation of the board diversity policy annually[117]. Environmental and Social Responsibility - The group has established multiple environmental protection policies aimed at reducing emissions and conserving energy[10]. - The Audit Committee reviewed the environmental, social, and governance reports published on the stock exchange and the company's website[144]. Audit and Financial Reporting - The company has engaged Hong Kong Lixin Dehao CPA Limited as its auditor, which will be reappointed at the upcoming annual general meeting[37]. - The company is committed to preparing true and fair consolidated financial statements in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance[194]. - The auditor evaluates the appropriateness of accounting policies adopted by the board and the reasonableness of accounting estimates and related disclosures[196]. - The consolidated financial statements are prepared based on the going concern assumption unless there is an intention to liquidate or cease operations[194].

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 HUA LIEN INTERNATIONAL (HOLDING) COMPANY LIMITED 華 聯 國 際（ 控 股 ）有 限 公 司 * （於開曼群島註冊成立之有限公司） （股份代號：969） 截至二零二二年十二月三十一日止年度之全年業績公告 華聯國際（控股）有限公司（「本公司」）董事會（「董事會」）欣然公佈本公司及其附屬 公司（「本集團」）截至二零二二年十二月三十一日止年度之經審核綜合業績連同二零 二一年同期比較數字如下： 綜合損益及其他全面收益表 截至二零二二年十二月三十一日止年度 二零二二年 二零二一年 附註 千港元 千港元 收益 (3) 142,835 135,619 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 80,759,000, an increase of 4.3% compared to HKD 77,536,000 for the same period in 2021[4] - Gross profit decreased to HKD 13,501,000, down 42.8% from HKD 23,652,000 year-on-year[4] - The company reported a loss for the period of HKD 997,000, a significant improvement from a loss of HKD 19,595,000 in the previous year[4] - The net loss attributable to the company’s owners for the period was HKD 103,000, compared to HKD 13,771,000 in the previous year[6] - The group recorded a net loss of approximately HKD 997,000 for the six months ended June 30, 2022, compared to a net loss of approximately HKD 19,595,000 in the same period of 2021, showing an improvement in financial performance[15] - The loss for the period decreased by approximately HKD 18,600,000 to about HKD 1,000,000, compared to a loss of HKD 19,600,000 for the same period in 2021[73] - The company reported a basic loss per share of approximately HKD 0.01, compared to HKD 0.63 for the same period in 2021[73] Assets and Liabilities - Total assets as of June 30, 2022, were HKD 136,576,000, down from HKD 151,265,000 as of December 31, 2021[8] - Current assets decreased to HKD 129,649,000 from HKD 144,579,000 at the end of 2021[8] - The company’s total liabilities amounted to HKD 1,007,596,000, an increase from HKD 988,953,000 at the end of the previous year[9] - The group’s current liabilities net amount was approximately HKD 991,186,000 as of June 30, 2022, compared to HKD 971,427,000 as of December 31, 2021, indicating a slight increase in liabilities[15] - The company reported a capital deficiency of approximately 829.1 million HKD as of June 30, 2022, compared to approximately 815.5 million HKD as of December 31, 2021[100] Cash Flow - The net cash used in operating activities for the six months ended June 30, 2022, was HKD (6,089,000), compared to HKD 6,222,000 in the prior year, indicating a significant shift in cash flow[13] - The total cash and cash equivalents at the end of the period was HKD 73,217,000, an increase from HKD 68,258,000 year-over-year, reflecting a growth of approximately 7.3%[13] - The company’s cash and cash equivalents were HKD 73,217,000, down from HKD 81,162,000 at the end of 2021[8] - The company’s cash and cash equivalents decreased by approximately 7.9 million HKD to about 73.2 million HKD as of June 30, 2022, primarily due to cash outflows from operating activities[101] Segment Performance - The segment performance showed a loss of HKD 3,159,000 for the total group, with the support services segment generating a profit of HKD 2,294,000, while the sugar and ethanol segments reported losses of HKD 4,684,000 and HKD 769,000 respectively[25] - The company operates in three main segments: support services, sugar business, and ethanol business, with performance metrics reported separately for each segment[23] - The operating profit for the support services segment was approximately 2.3 million HKD for the six months ended June 30, 2022, compared to approximately 400,000 HKD for the same period in 2021, mainly due to foreign exchange gains[93] - The ethanol business segment reported an operating loss of approximately 800,000 HKD for the six months ended June 30, 2022, compared to an operating profit of approximately 400,000 HKD for the same period in 2021, attributed to foreign exchange losses[95] Revenue Sources - Revenue from Jamaica was HKD 70,353,000 for the six months ended June 30, 2022, compared to HKD 64,737,000 in the same period of 2021, indicating a growth of approximately 8.5%[34] - The company recorded revenue of approximately 1,596,000,000 Jamaican dollars (about 80,800,000 HKD) for the six months ended June 30, 2022, representing a 7.5% increase compared to 1,485,400,000 Jamaican dollars (about 77,500,000 HKD) for the same period in 2021[81] - Raw sugar revenue increased by approximately 115,500,000 Jamaican dollars (about 4,000,000 HKD) due to an average selling price increase of about 18.1%, despite a decrease in raw sugar sales volume by approximately 6.9%[81] Inventory and Costs - The company incurred an inventory cost of 59,456 HKD for the six months ended June 30, 2022, compared to 53,884 HKD in the previous year[1] - The company’s inventory as of June 30, 2022, was valued at 69,454 HKD, compared to 55,815 HKD at the end of 2021[47] - The company made a provision for obsolete inventory amounting to 7,802 HKD during the six months ended June 30, 2022, whereas there was no provision in the same period of 2021[48] - The company experienced an increase in production costs by approximately 10.1%, primarily due to a rise in sugarcane procurement prices by about 13.9%[87] Corporate Governance - The company has complied with the corporate governance code as of June 30, 2022, with some deviations noted regarding insurance arrangements for directors[130] - The chairman and CEO roles are clearly separated, ensuring a balance of power within the board[132] - The independent non-executive directors are expected to actively participate in board meetings and contribute their expertise[133] Future Outlook - The sugar business segment is expected to face challenges due to the ongoing COVID-19 pandemic, with a potential decrease in global sugar production and tight supply conditions[116] - The construction of the ethanol plant will remain suspended in the second half of 2022 while the company determines an appropriate alternative business plan[118] - The group will closely monitor foreign exchange risks to take appropriate measures against any significant adverse impacts[105]

Financial Performance - The company's revenue increased by approximately 14.5% to about HKD 135.6 million for the year ended December 31, 2021, compared to HKD 118.5 million in 2020, primarily driven by the growth in the edible sugar segment [21]. - Gross profit decreased by approximately HKD 6.3 million to about HKD 21.9 million, with a gross margin reduction of about 7.6% to approximately 16.2% from 23.8% in 2020, attributed to production cost increases outpacing average selling price increases [21]. - The pre-tax loss decreased by approximately HKD 63.9 million to about HKD 57.3 million, down from HKD 121.2 million in 2020, mainly due to a reduction in fair value losses on biological assets and changes in operating income and expenses [22]. - Basic loss per share for the year was approximately HKD 1.51, compared to HKD 4.38 in 2020 [23]. - The company did not recommend a dividend for the year ended December 31, 2021, consistent with the previous year [24]. Revenue and Sales - The sugar production and processing business in Jamaica reported a revenue increase of approximately JMD 400 million to about JMD 2.6 billion (approximately HKD 135.6 million) from JMD 2.2 billion (approximately HKD 118.5 million) in 2020 [25]. - Sugar and molasses sales volumes increased by approximately 4.8% and 22.2%, respectively, due to a rise in sugarcane input of about 66,800 tons [28]. - Average selling prices for raw sugar and molasses increased by approximately 7.2% and 13.8%, respectively, driven by reduced local and international sugar supply [30]. - The revenue breakdown by region showed Jamaica contributing JMD 2,396.3 million (approximately HKD 123.6 million) or 91.2% of total revenue, while the USA contributed JMD 232.0 million (approximately HKD 12.0 million) or 8.8% [32]. - Local sales in Jamaica increased from approximately 88.1% to about 91.2%, while overseas sales decreased from approximately 11.9% to about 8.8% [34]. Production and Costs - The company processed approximately 259,200 tons of sugarcane to produce about 15,700 tons of raw sugar and about 14,600 tons of molasses in 2021, compared to 192,400 tons of sugarcane yielding about 11,200 tons of raw sugar and molasses in 2020 [29]. - The gross profit decreased by approximately 95,400,000 Jamaican dollars (about 6,300,000 HKD) to around 425,300,000 Jamaican dollars (about 21,900,000 HKD), with a gross margin reduction to about 16.2% from 23.8% [34]. - The average selling prices of raw sugar and molasses increased by approximately 7.2% and 13.8%, respectively, while production costs rose by approximately 24.0% and 27.3% [34]. - The cost of raw sugar production per ton was approximately 123,000 Jamaican dollars (about 6,300 HKD), and for molasses, it was approximately 16,900 Jamaican dollars (about 870 HKD) [34]. - The agricultural cost per hectare increased from approximately 248,000 Jamaican dollars (about 13,000 HKD) to about 317,000 Jamaican dollars (about 16,000 HKD), a rise of approximately 27.7% [34]. Losses and Fair Value - The net loss for the sugar segment was approximately 80,800,000 HKD, a decrease of about 2,600,000 HKD compared to the previous year [37]. - The fair value loss of biological assets decreased by approximately 15,800,000 HKD due to a 31.0% increase in sugarcane market prices [37]. Cash Flow and Borrowings - The company aims to maintain cash flow balance and achieve positive cash flow in 2022 by controlling customer risks and offering early payment discounts [47]. - The total borrowings of the group as of December 31, 2021, amounted to approximately HKD 1,094,200,000, an increase from HKD 1,072,100,000 in 2020 [53]. - The equity attributable to owners of the company showed a capital deficit of approximately HKD 815,500,000 as of December 31, 2021, compared to HKD 812,500,000 in 2020 [52]. - The bank deposits and cash balance increased to approximately HKD 81,200,000 as of December 31, 2021, up from HKD 63,500,000 in 2020 [56]. Corporate Governance - The board of directors emphasizes the importance of maintaining high standards of corporate governance to enhance shareholder value [146]. - The company has complied with the corporate governance code, with some deviations noted in specific clauses [147]. - The board consists of three executive directors, two non-executive directors, and three independent non-executive directors, bringing diverse expertise [158]. - The independent non-executive directors have confirmed their independence as per the listing rules [141]. - The company will seek to obtain insurance for directors and senior management in 2022 after not securing any offers in 2021 [147]. Employee Costs and Employment - The total employee cost for the group in the review year was approximately HKD 39,600,000, an increase from HKD 35,900,000 in the previous year, reflecting a rise of about 7.7% [70]. - Employee costs in the sugar business segment increased by approximately HKD 4,400,000 due to additional hiring to manage extended sugarcane crushing periods and increased maintenance work [70]. - The group employed 141 full-time employees and 527 temporary employees as of December 31, 2021, compared to 116 full-time and 422 temporary employees in the previous year [71]. Environmental and Compliance - The group has established multiple environmental protection policies aimed at reducing emissions and conserving energy [93]. - The group has no significant violations of applicable laws and regulations that would materially affect its business operations [94]. - The group invested in compliance procedures to ensure adherence to laws and regulations that significantly impact its operations [94]. Board Committees and Diversity - The nomination committee reviewed the board's structure, size, and diversity, confirming that the board possesses diverse skills and expertise [175]. - The nomination committee recommended the appointment of Liu Xueyi, Han Hong, and Shi Zhu as candidates for the company's annual general meeting [176]. - The board's diversity policy was adopted on March 27, 2014, and has been revised to include gender, age, skills, and experience as factors in candidate selection [190]. - The nomination committee has established measurable diversity goals for the board, including at least one qualified accountant and one director with relevant experience in the sugar industry [192].