GREEN FUTURE FOOD HYDROCOLLOID MARINE SCIENCE COMPANY LIMITED 綠新親水膠體 海洋科技有限公司 於開曼群島註冊成立的有限公司 股份代號: 01084 O 2022 中期報告 0 願景 使命核心價值 與時並進，以質量和創新滿足客戶不 斷發展的應用需求 | --- | --- | --- | --- | --- | --- | --- | --- | |-----------------------------------|-------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 願景 | | | | | | | | | 成為全球領先全天然 | | | | | | | | | 功能材料 (All-Natural Performance | | | | | | | | | Materi ...

年報 202 GREEN FUTURE FOOD HYDROCOLLOID MARINE SCIENCE COMPANY LIMITED 綠新親水膠體海洋科技有限公司 於開曼群島註冊成立的有限公司 股份代號: 01084 願景 使命核心價值 | --- | --- | --- | --- | --- | --- | |------------------------------------------------------------------------------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 願景 成為全球領先全天然 功能材料 (All-Natural Performance Materials) 的研發製造商 | | | | | | | | | | | | | 使命 與時並進，以質量和創新滿足客戶不 斷發展的應用需求 核心價值 創新、成長、再創新 目錄 | --- ...

GREEN FUTURE FOOD HYDROCOLLOID MARINE SCIENCE COMPANY LIMITED 綠新親水膠體 海洋科技有限公司 於開曼群島註冊成立的有限公司 股份代號: 01084 2021 中期報告 願景 使命核心價值 與時並進，以質量和創新滿足客戶不 斷發展的應用需求 | --- | --- | --- | --- | --- | --- | --- | |-----------------------------------|-------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 願景 成為全球領先全天然 | | | | | | | | 功能材料 (All-Natural Performance | | | | | | | | Materials) 的研發製造商 | | | | | | | | | | | | | | | 使命 核心價值 創新 ...

Financial Performance - The company's revenue for 2020 was HKD 997.1 million, an increase from HKD 877.2 million in 2019, representing a growth of approximately 13.7%[19] - Gross profit for 2020 was HKD 267.0 million, compared to HKD 190.9 million in 2019, indicating a growth of about 40%[19] - Net profit for 2020 was HKD 93.8 million, up from HKD 67 million in 2019, reflecting a year-over-year increase of approximately 39.7%[20] - The overall gross profit for 2020 was HKD 190.9 million, representing a decline of 24.2% from HKD 251.7 million in 2019, with a gross margin of 21.8%, down 3.6% from the previous year[38] - The company's attributable profit for 2020 was HKD 68.9 million, down from HKD 93.3 million in 2019, primarily due to the reasons mentioned above[44] - The company reported a 103.0% increase in revenue from the African market, benefiting from new customers in South Africa[32] - The company anticipates organic growth and recovery opportunities in the existing end-product market, driven by new product launches[35] Assets and Liabilities - The total assets as of December 31, 2020, were HKD 933.3 million, a decrease from HKD 1,428.8 million in 2019[21] - The net debt to equity ratio increased to 44.0% in 2020 from 31.5% in 2019, indicating a rise in financial leverage[21] - As of December 31, 2020, the group's cash and cash equivalents totaled HKD 171.8 million, a decrease of HKD 14.3 million compared to December 31, 2019[45] - The net current assets as of December 31, 2020, were HKD 271.8 million, down HKD 37.1 million from HKD 308.9 million on December 31, 2019, primarily due to an increase in inventory of HKD 183.0 million[46] - Total bank borrowings amounted to HKD 489.9 million, with HKD 461.5 million due within one year and HKD 28.4 million due after one year[47] Market and Sales - The company maintained a stable sales distribution with 46.3% from China and 53.7% from overseas markets in 2020, compared to 44.2% and 55.8% in 2019, respectively[26] - Sales of carrageenan products amounted to HKD 515.2 million in 2020, a decrease of 6.1% from HKD 548.7 million in 2019, while other products saw sales drop by 18.5% to HKD 362.0 million[25] - The overall demand for hydrophilic colloid products varied by region, with a 7.6% decline in the Chinese market and more significant declines in Europe, North America, and Asia (excluding China) of 11.7%, 25.3%, and 30.7%, respectively[32] Investments and Acquisitions - In 2021, the company completed the acquisition of 82% of Hung Tai Shun International Trading Limited, enhancing its market presence in semi-refined carrageenan production[12] - The acquisition of 82% of Hung Tai Shun for HKD 60.0 million is expected to enhance the company's production capacity for semi-refined carrageenan to 7,985 tons[28] - The company has committed capital expenditures of HKD 54.1 million as of December 31, 2020, compared to HKD 1.9 million in the previous year[61] Research and Development - The number of R&D personnel increased to 59 in 2020 from 57 in 2019, showing a commitment to innovation[8] - The company established Shengxi Biotechnology (Shanghai) Co., Ltd. in 2020, focusing on the R&D and marketing of dairy and meal replacement products[12] - The company established a post-doctoral research workstation in 2020 to enhance innovation capabilities[197] - The company has obtained multiple patents in China related to the development and improvement of agar and carrageenan processing technology[197] Corporate Governance - The board consists of eight directors, including four executive directors, one non-executive director, and three independent non-executive directors[143] - The company has appointed at least three independent non-executive directors, meeting the listing rules requirements[144] - The company emphasizes the importance of independent directors, ensuring they do not hold any executive positions within the company[144] - The board has adopted a diversity policy, considering various factors such as age, culture, education background, and professional experience in board composition[147] Compliance and Risk Management - The company has complied with all relevant laws and regulations without any significant violations during the review period[94] - The internal audit department conducted audits on major operating entities in China during 2020, identifying control deficiencies and suggesting improvements[162] - The board has reviewed the effectiveness of the risk management and internal control systems and found them to be adequate[163] Environmental, Social, and Governance (ESG) - The ESG report covers the company's operations in four production plants in Fujian and Hubei provinces for the period from January 1, 2020, to December 31, 2020[177] - The company has established a clear ESG management structure, with the board of directors overseeing ESG matters and responsible for the group's ESG strategy and reporting[179] - The company emphasizes energy efficiency and environmental protection as part of its commitment to sustainability[182] Shareholder Information - The company proposed a final cash dividend of HKD 0.025 per share, totaling HKD 20.4 million, to share its operational results with shareholders[27] - The total number of unexercised share options as of December 31, 2020, was 17,728,000, after 16,392,000 options were exercised during the year[100] - The company has a post-IPO share option plan allowing for the issuance of up to 80,000,000 shares, representing a percentage of the total shares issued as of the report date[104] Customer Relations - The company has a dedicated sales service hotline and email to respond to customer inquiries and complaints[199] - The company received 4 customer complaints during the reporting period, achieving a 100% complaint handling rate[200] - The company analyzes customer feedback to continuously improve service quality and standards[199]

Financial Performance - The company's revenue for the first half of 2020 was HKD 428.5 million, a slight increase of 0.7% compared to HKD 425.4 million in 2019[14]. - Net profit for the period was HKD 34.5 million, down 7.0% from HKD 37.1 million in 2019, primarily due to a decrease in overall gross margin by 4.0%[14]. - Gross profit decreased by 14.5% to HKD 96.4 million, with an overall gross margin of 22.5%, down 4.0% from the previous year[23]. - The company's net profit attributable to shareholders was HKD 36.1 million, reflecting a moderate decline of 1.6% from HKD 36.7 million in 2019[30]. - Operating profit for the period was HKD 58,144,000, compared to HKD 63,795,000 in the previous year, reflecting a decline of 8.4%[58]. - The company reported a total comprehensive income of HKD 21,325,000 for the period, down from HKD 33,379,000 in the previous year, a decrease of 36.1%[60]. - The company recorded a pre-tax profit of HKD 50,496,000, compared to HKD 46,560,000 in the previous year[107]. Sales and Market Performance - Domestic and overseas sales accounted for approximately 46.2% and 53.8% of total sales, respectively, with significant growth in Denmark, Spain, and Chile, increasing by 10.5% and 23.4% year-on-year[16]. - The Asian market (excluding China) saw a sales decline of 27.5% due to the repeated impact of the pandemic[16]. - Revenue growth for carrageenan, konjac, and blended products was recorded at 12.2%, 9.9%, and 2.8% respectively, while agar products saw a significant decline of 23.7% due to pandemic-related demand fluctuations[21]. - Revenue from external customers in China was HKD 198,112,000, up from HKD 189,201,000 in the previous year[102]. Product Development and Innovation - The company aims to be a leading developer and manufacturer of all-natural performance materials, focusing on quality and innovation to meet customer needs[12]. - The company is expanding its product offerings by developing blends of different hydrophilic colloids to enhance functionality, such as plant-based artificial meat[12]. - The company continues to support customers in developing new applications and end products through product research and development[13]. - The company plans to continue investing in product research and development, optimizing product mix, and expanding into new markets, particularly in Southeast Asia[18]. Financial Position and Liquidity - The cash and cash equivalents as of June 30, 2020, amounted to HKD 163.7 million, a decrease of HKD 22.5 million from December 31, 2019[31]. - The current ratio as of June 30, 2020, was 1.63, down from 1.74 at the end of 2019, indicating a slight decline in liquidity[31]. - Total assets increased to HKD 1,268,701,000 as of June 30, 2020, compared to HKD 1,212,006,000 at the end of 2019, representing a growth of 4.7%[63]. - Total liabilities increased to HKD 578,194,000 from HKD 509,563,000, marking a rise of 13.5%[65]. - The company reported a significant increase in bank borrowings, rising from HKD 344,155,000 as of December 31, 2019, to HKD 423,810,000 as of June 30, 2020[92]. Shareholder Information - The company’s total liabilities decreased, reflecting improved financial management strategies[68]. - The company declared an interim cash dividend of HKD 0.025 per share, expected to be paid on September 25, 2020[171]. - Major shareholders include Chuangyu with 161,700,000 shares, representing 19.81% of total shares[182]. - The largest individual shareholder, Mr. Chen Jinchong, holds 161,700,000 shares, equivalent to 19.81%[182]. - The company has granted a total of 16,392,000 stock options under the pre-IPO stock option plan[186]. Employee and Operational Insights - The company had 1,057 full-time employees, with 1,048 located in mainland China and 9 in Hong Kong and other countries[167]. - The company maintains competitive compensation packages for employees, regularly reviewing them to align with market standards[167]. - The management emphasizes good working relationships with employees and provides training to keep them updated on product and production processes[167]. Risk Management and Compliance - The company is currently evaluating the impact of new accounting standards and amendments on its financial reporting[83]. - Financial risk management policies have remained unchanged since the end of the previous year, focusing on minimizing potential adverse effects on financial performance[87]. - The company has not adopted several new accounting standards that are set to be implemented in 2022 and 2023, indicating a cautious approach to regulatory changes[83].

Financial Performance - The company reported a revenue of HKD 992.9 million for 2019, a slight decrease from HKD 997.1 million in 2018[22] - Gross profit for 2019 was HKD 267.0 million, with a gross margin of approximately 27%[22] - Net profit for 2019 was HKD 93.9 million, resulting in a diluted earnings per share of HKD 0.156, compared to HKD 0.14 in 2018[23] - The group's total sales revenue for 2019 was HKD 992.9 million, a slight decrease of 0.4% compared to HKD 997.1 million in 2018[29] - The net profit for the year ended December 31, 2019, was HKD 93.9 million, remaining stable compared to HKD 93.8 million in 2018[29] - The group's gross profit for the year was HKD 251.7 million, representing a decrease of 5.7% from HKD 267.0 million in 2018, with a gross margin of 25.4%, down 1.4 percentage points[47] Production Capacity and Products - The total design capacity for agar products reached 5,519 tons in 2019, an increase from 4,565 tons in 2018[6] - The total design capacity across all production bases reached 19,686 tons in 2019, up from 18,700 tons in 2018[6] - The company launched a new product, instant agar, with a design capacity of 1,500 tons per year in 2019[15] - The sales revenue from instant agar products grew by 253.7% compared to 2018, becoming one of the highest gross margin products for the group in 2019[41] - The sales volume and revenue of konjac products increased by 12.5% and 19.7%, respectively, compared to 2018[42] - The sales revenue for carrageenan and konjac products grew by 2.6% and 19.7% respectively, while agar and blended products saw declines of 3% and 17%[44] Market Performance - The sales revenue in the domestic market decreased by 7.7%, while the European market saw an 8.1% decline; however, sales in the Asian market (excluding China) increased by 44.7%[40] - The group’s domestic and overseas sales accounted for approximately 44.2% and 55.8% of total sales, respectively, compared to 47.7% and 52.3% in 2018[40] - The company aims to expand its market presence in health foods and plant-based products, enhancing customer collaboration for product development[28] - The group plans to expand its market space by supporting the development of new end products and applications, particularly in the pet food and health food sectors[35] Financial Position and Assets - The total asset value for 2019 was HKD 933.3 million, with a total liabilities to equity ratio of 129.3%[25][26] - The cash and cash equivalents reached HKD 186.2 million as of December 31, 2019, an increase of HKD 130.3 million from the previous year[54] - The current ratio improved to 1.74 from 1.19 in 2018, while the capital debt ratio decreased to 72.5% from 129.3%[54] - The net current assets increased to HKD 308.9 million, up HKD 237.4 million from HKD 71.6 million in 2018, primarily due to increased inventory and cash from fundraising[55] - As of December 31, 2019, the total bank borrowings of the group amounted to HKD 344.2 million, with HKD 284.9 million due within one year and HKD 59.3 million due after one year[56] Dividends and Shareholder Returns - The group proposed a final cash dividend of HKD 0.05 per share, totaling HKD 40 million, to share the operating results with shareholders[32] - The company proposed a final dividend of HKD 0.05 per share, totaling HKD 40 million for the year ended December 31, 2019, compared to no dividend in 2018[95] - The company has a dividend policy to distribute at least 20% of the profit attributable to owners, subject to operational needs and future business expansion plans[186] - The company is committed to maintaining a sustainable dividend policy that balances shareholder expectations and sound capital management[186] Governance and Compliance - The company confirmed that all independent non-executive directors meet the independence criteria as per the listing rules[91] - The company has received annual independence confirmations from all independent non-executive directors, affirming their status as independent individuals[105] - The company has adopted the principles and code provisions of the Corporate Governance Code as set out in the Listing Rules[149] - The board consists of eight directors, including four executive directors, one non-executive director, and three independent non-executive directors[151] - The company has established a non-competition agreement with its controlling shareholders, ensuring compliance as of December 31, 2019[128] Risk Management and Internal Controls - The board has reviewed the effectiveness of the risk management and internal control systems and found them to be effective and adequate[177] - The internal audit department conducted audits on major operating entities in China, identifying internal control deficiencies and suggesting improvements[176] Environmental, Social, and Governance (ESG) - The company has issued its first environmental, social, and governance report, detailing policies, practices, and performance in these areas[191] - The company has established a clear ESG management structure to guide daily operations and integrate ESG risks and opportunities into its business strategy[198] - The board of directors is responsible for overseeing ESG matters and approving the annual ESG report, ensuring accountability for environmental, social, and governance strategies[198] - Key stakeholders identified include government and regulatory bodies, shareholders, customers, employees, suppliers, communities, and the environment, with active communication channels established for engagement[199] Employee and Management - The total employee cost for the year ended December 31, 2019, was HKD 93.9 million, compared to HKD 93.3 million for the year ended December 31, 2018[63] - The company has maintained competitive compensation to attract and motivate employees, with no significant disputes with customers or suppliers during the year[101] - The remuneration range for senior management members (excluding directors) for the year ended December 31, 2019, included one individual earning between HKD 1 million to 2 million, one earning between HKD 2 million to 3 million, and one earning between HKD 3 million to 4 million[179] Audit and Financial Services - The company paid HKD 1,931,000 for annual audit services provided by external auditors[180] - The company incurred HKD 3,749,000 for listing services, with most deducted from profit and the remainder from share premium account[180] - Non-audit services provided by the company's auditors amounted to HKD 205,000, assisting with the environmental, social, and governance report[180]