Financial Performance - The company reported a revenue of HKD 52,218,000 for the six months ended June 30, 2019, a decrease of 11.8% compared to HKD 59,223,000 in the same period of 2018[3]. - Gross profit for the same period was HKD 11,871,000, slightly down from HKD 12,126,000 in 2018, reflecting a gross margin of approximately 22.7%[3]. - The company incurred a loss of HKD 65,030,000 for the six months ended June 30, 2019, an improvement of 11.6% compared to a loss of HKD 73,521,000 in 2018[3]. - The net loss attributable to the company's owners was HKD 48,222,000 for the period, an improvement from HKD 54,730,000 in the previous year[3]. - The company reported a basic and diluted loss per share of HKD 0.0220, compared to HKD 0.0250 in the same period of 2018[3]. - The total comprehensive loss for the six months ended June 30, 2019, was HKD 49,450 thousand, compared to a total comprehensive loss of HKD 60,977 thousand for the same period in 2018, reflecting a reduction in losses of approximately 18.5%[12]. - The company experienced a pre-tax loss of HKD 65,030,000 for the six months ended June 30, 2019[49]. - The company reported a segment loss of HKD 63,124,000, with the support services segment showing a loss of HKD 7,065,000 and the edible sugar business showing a loss of HKD 55,207,000[51]. - The company incurred a loss of HKD 48,222,000 for the six months ended June 30, 2019, compared to a loss of HKD 54,730,000 for the same period in 2018, indicating an improvement of approximately 12%[71]. Assets and Liabilities - Total assets increased to HKD 284,797,000 as of June 30, 2019, compared to HKD 271,531,000 at the end of 2018[8]. - Current assets rose to HKD 271,597,000, up from HKD 258,485,000 at the end of 2018, driven by an increase in inventory[8]. - The company's total liabilities amounted to HKD 1,113,795,000, compared to HKD 1,077,324,000 at the end of 2018, indicating a rise in financial obligations[9]. - The company's total assets as of June 30, 2019, were HKD 1,909,537 thousand, compared to HKD 1,845,136 thousand as of June 30, 2018, representing an increase of about 3.5%[12]. - The company's equity attributable to owners as of June 30, 2019, was HKD 707,165 thousand, down from HKD 716,966 thousand as of June 30, 2018[12]. - The company reported total borrowing costs of HKD 39,053,000 for the six months ended June 30, 2019, down from HKD 48,450,000 in the same period of 2018, representing a reduction of approximately 19%[67]. - As of June 30, 2019, the total borrowings of the group amounted to approximately HKD 1,042,500,000, an increase from HKD 995,200,000 as of December 31, 2018[126]. Cash Flow and Financing - The company’s cash and cash equivalents stood at HKD 68,144,000, down from HKD 72,456,000 at the end of 2018, reflecting cash flow challenges[8]. - For the six months ended June 30, 2019, the net cash generated from operating activities was HKD 9,124 thousand, a significant improvement from a net cash used of HKD 106,299 thousand in the same period of 2018[15]. - The company reported a net cash inflow from financing activities of HKD 7,374 thousand for the six months ended June 30, 2019, compared to a net cash outflow of HKD 35,025 thousand in the same period of 2018[15]. - The company reported a significant improvement in cash flow management, with a net increase in cash and cash equivalents of HKD 14,687 thousand for the six months ended June 30, 2019, compared to a decrease of HKD 142,820 thousand in the same period of 2018[15]. - The group's cash and cash equivalents as of June 30, 2019, were approximately HKD 68,100,000, down from HKD 72,500,000 as of December 31, 2018, primarily due to a net cash outflow from investing activities of approximately HKD 1,800,000[132]. Inventory and Receivables - The inventory balance as of June 30, 2019, was HKD 112,592,000, up from HKD 82,081,000 as of December 31, 2018, reflecting an increase of approximately 37%[76]. - Trade receivables, net of provisions, were approximately HKD 66,174,000 as of June 30, 2019, down from HKD 72,954,000 as of December 31, 2018, indicating a decrease of about 9%[80]. - Trade payables amounted to approximately HKD 12,239,000 as of June 30, 2019, down from HKD 15,667,000 as of December 31, 2018[84]. Accounting and Reporting Changes - The company adopted new accounting standards effective January 1, 2019, which may impact the financial reporting and disclosures moving forward[18]. - The company adopted the new definition of leases under HKFRS 16, which focuses on the concept of control over the use of identified assets[23]. - The company recognized a lease liability of HKD 28,195,000 as of January 1, 2019, which corresponds to the present value of remaining lease payments[33]. - The impairment loss on the right-of-use asset was approximately HKD 28,195,000, recognized in profit or loss due to the recoverable amount being determined as nominal value[37]. - The company reported a total lease liability of HKD 28,257,000 as of June 30, 2019, with future lease payments totaling HKD 90,990,000[39]. - The company adopted HKFRS 16, which negatively impacted the reported operating profit compared to the previous HKAS 17[42]. Market and Operational Insights - Revenue from external customers in Jamaica decreased to HKD 37,574,000 in 2019 from HKD 41,659,000 in 2018, representing a decline of about 10%[64]. - The sales volume of raw sugar and honey decreased by approximately 500 tons and 7,300 tons, or about 6.3% and 36.9%, respectively, primarily due to the temporary suspension of operations at the Monymusk sugar factory[106]. - Jamaica accounted for approximately 72.0% of total sales, while exports to the US and Caribbean countries accounted for about 28.0%[108]. - The average price of raw sugar increased by approximately 11.2%, leading to an estimated increase of about 600 Jamaican dollars (about 36 HKD) or about 20.2% in the price of sugar cane per ton as of June 30, 2019[113]. - The company’s ethanol business in Benin remains on hold due to the inability of the Benin government to execute the land lease terms necessary for operations[123]. - The group plans to maintain operations at sufficient levels despite lower annual revenue due to the suspension of the Monymusk sugar factory, with efforts to export raw sugar to European countries to increase revenue[149]. Corporate Governance and Shareholder Information - As of June 30, 2019, the company had a major shareholder, China National Complete Engineering Corporation, holding 800,000,000 shares, representing approximately 36.51% of the issued share capital[158]. - China International Sugar Industry Co., Ltd. held 300,000,000 shares, accounting for approximately 13.69% of the issued share capital[158]. - The company has adhered to the corporate governance code, with the exception of certain deviations regarding the appointment of non-executive directors[167]. - The audit committee has reviewed the unaudited interim financial statements for the six months ending June 30, 2019, confirming compliance with applicable accounting standards[169]. - The company has not participated in any arrangements for directors to acquire shares or debt securities during the reporting period[156].

Financial Performance - The company's revenue decreased by approximately 44.1% to about HKD 134.5 million for the year ended December 31, 2018, down from HKD 240.5 million in 2017[8]. - Gross profit fell by approximately HKD 66.2 million, resulting in a gross loss of about HKD 9 million, with a gross margin decrease of approximately 30.5% to a gross loss margin of about 6.7%[8]. - The pre-tax loss decreased by approximately HKD 8.1 million to about HKD 93.2 million, compared to HKD 101.3 million in 2017[9]. - Basic loss per share for the year was approximately HKD 0.0324, compared to HKD 0.0420 in 2017[10]. - The net loss for the operating segment increased to approximately 75.5 million HKD in 2018 from approximately 33.7 million HKD in 2017, primarily due to a decrease in gross profit of approximately 23.9 million HKD[22]. - The company had no significant capital commitments as of December 31, 2018[54]. - The company does not recommend the payment of dividends for the years ended December 31, 2018, and 2017[28]. Sugar Business Operations - The revenue from the sugar business in Jamaica was approximately JMD 2.2 billion (about HKD 134.5 million) in 2018, a slight decrease from JMD 2.3 billion (about HKD 141.8 million) in 2017[15]. - The Monymusk sugar factory resumed operations in 2018, leading to an increase in raw sugar and molasses sales by 5,200 tons (approximately 25.3%) and 7,800 tons (approximately 56.3%), respectively[15]. - The average selling price of raw sugar and molasses decreased by approximately 27.4% and 2.2%, respectively, impacting the revenue from the sugar business[15]. - Local sales in Jamaica decreased from approximately 85.4% to about 71.6%, while overseas sales increased from about 14.6% to approximately 28.4%[18]. - The company had to adjust its export to local sales ratio from 20:80 to 30:70 to maintain overall revenue due to increased smuggling activities affecting local demand[19]. - In 2018, the company recorded a gross loss of approximately 147.7 million Jamaican dollars (about 9 million HKD), compared to a gross profit of approximately 239.5 million Jamaican dollars (about 14.9 million HKD) in 2017, resulting in a gross margin decrease from 10.5% to a gross loss margin of approximately 6.7%[21]. - The average production costs decreased by approximately 10.4% and 8.1%[21]. - Expected sales volume for raw sugar and molasses in 2019 is projected to decline, primarily due to the anticipated non-operation of the Monymusk sugar factory[31]. Corporate Governance - The board emphasizes the importance of maintaining high standards of corporate governance to enhance shareholder value and protect shareholder interests[133]. - The company has complied with the corporate governance code, with some deviations noted in specific clauses[133]. - The roles of the Chairman and CEO are clearly separated, with the Chairman ensuring effective board operations and discussions on important matters[135]. - The board consists of three executive directors, two non-executive directors, and three independent non-executive directors, providing a diverse range of expertise[144]. - All independent non-executive directors confirmed their independence according to the listing rules[153]. - The nomination committee is responsible for identifying suitable candidates for board membership and making recommendations to the board[164]. - The board has the final decision-making authority regarding all matters related to the nomination of candidates for election at the shareholders' meeting[165]. - The company has established a clear framework for the roles and responsibilities of its various committees, including the nomination committee[155]. Employee Costs and Management - Total employee costs for the group amounted to approximately HKD 55.2 million in the review year, an increase of about HKD 10.1 million (22.3%) compared to HKD 45.1 million in 2017[60]. - Employee costs in Jamaica's sugarcane planting and manufacturing business totaled approximately JMD 600 million (about HKD 36.3 million), up from JMD 400 million (about HKD 24.8 million) in 2017[60]. - The increase in employee costs was primarily due to the resumption of operations at the Monymusk sugar factory, contributing approximately HKD 9.8 million (97.0% of the increase)[60]. - As of December 31, 2018, the group employed 179 full-time employees and 395 temporary employees, down from 209 full-time and 471 temporary employees in 2017[60]. Financial Position - The company's attributable capital deficit was approximately HKD 670,500,000 as of December 31, 2018, compared to HKD 602,100,000 in 2017[40]. - Total borrowings in Hong Kong amounted to approximately HKD 995,200,000 as of December 31, 2018, an increase from HKD 964,800,000 in 2017[41]. - Cash and cash equivalents decreased by approximately HKD 90,800,000, primarily due to a net cash outflow from operating activities of about HKD 53,300,000[45]. Risk Management and Internal Controls - The board is responsible for overseeing the group's risk management and internal control systems, reviewing their effectiveness at least annually[197]. - The internal audit department conducts reviews of significant aspects of risk management and internal controls, reporting at least annually to the board and audit committee[199]. - Appropriate policies and controls are established to safeguard assets and ensure compliance with relevant rules and regulations[197]. - The risk management system aims to manage rather than eliminate risks that may affect the group's performance[197]. Shareholder Relations and Transactions - Major shareholders as of December 31, 2018, include China National Complete Engineering Corporation with 800,000,000 shares (36.51% of issued share capital) and Zhongcheng International Sugar Holdings Limited with 300,000,000 shares (13.69% of issued share capital)[112]. - The company had no non-exempt continuing connected transactions during the year ended December 31, 2018, due to delays in compliance procedures[115]. - The exempt continuing connected transaction involved an office lease agreement with a total annual rent and management fee of approximately HKD 760,000, which is below the 5% threshold for reporting[118].