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之內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部份內容而產生或因倚賴該等內 容而引致之任何損失承擔任何責任。 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） 截 至 二 零 二 二 年 十 二 月 三 十 一 日 止 年 度 全 年 業 績 董事會欣然宣佈截至二零二二年十二月三十一日止年度的本集團綜合經審核財務 業績如下： － 收益1,643.8百萬港元，較截至二零二一年十二月三十一日止年度1,163.1百 萬港元上升41.3%。 － 毛利447.5百萬港元，毛利率27.2%，較截至二零二一年十二月三十一日止年 度的270.4百萬港元及23.2%分別上升65.5%及4.0個百分點。 ...

Financial Performance - Total revenue for the first half of 2022 reached HKD 777.9 million, a 57.3% increase compared to HKD 494.6 million in the same period of 2021[15]. - Net profit increased to HKD 126.1 million, up from HKD 33.7 million, representing a significant growth driven by an 11.2% increase in sales volume and an 8.7 percentage point rise in gross margin to 30.3%[15]. - Gross profit increased by 120.7% to HKD 236.0 million, with an overall gross margin of 30.3%, up 8.7 percentage points year-on-year[27]. - Operating profit increased to HKD 180,001 thousand, representing a significant rise of 228.5% from HKD 54,680 thousand in the previous year[66]. - Net profit for the period was HKD 126,142 thousand, compared to HKD 33,666 thousand in 2021, marking a growth of 274.5%[66]. - Basic earnings per share rose to HKD 0.153, up from HKD 0.042, reflecting a growth of 264.3%[66]. - The total comprehensive income for the period ended June 30, 2022, was HKD 77,021,000, a decrease from HKD 39,426,000 in the previous year, reflecting a decline in overall profitability[76]. Market and Sales Performance - Sales value from the Chinese market accounted for 39.6% of total sales, while overseas markets contributed 60.4%, with significant growth in Europe (70.9%), North America (46.0%), South America (64.7%), and Asia excluding China (157.3%) during the period[16]. - The sales revenue growth was driven by strong market demand, with agar, carrageenan, konjac, and blended products recording sales growth of 34.3%, 76.4%, 4.5%, and 43.0% respectively[25]. - The strong demand for agar and carrageenan products from local and overseas food manufacturers contributed to significant sales growth during the recovery from COVID-19[15]. Expenses and Costs - The increase in net profit was partially offset by rising administrative expenses, financing costs, and income tax expenses, which increased by HKD 8.4 million, HKD 2.7 million, and HKD 30.1 million respectively[15]. - The company's administrative expenses rose by 18.7% to HKD 53.3 million, primarily due to increased employee wages and social security costs[30]. - The company's operating expenses, including employee benefits, were HKD 62,870,000, compared to HKD 57,781,000 in the previous year, showing an increase of 8.5%[107]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.02 per share, totaling HKD 16.5 million, to be paid on October 20, 2022[21]. - The company proposed an interim dividend of HKD 0.02 per share, totaling HKD 16,505,000, an increase from HKD 12,312,000 in the previous year, reflecting a growth of 33.5%[120]. Assets and Liabilities - As of June 30, 2022, the group's cash and bank balances reached HKD 85.8 million, a decrease of HKD 48.0 million compared to December 31, 2021[38]. - Total bank borrowings amounted to HKD 653.1 million as of June 30, 2022, with HKD 514.4 million due within one year[40]. - The group has total liabilities of HKD 877,415,000 as of June 30, 2022, compared to HKD 777,180,000 as of December 31, 2021, indicating an increase of approximately 12.9%[97]. - The total assets as of June 30, 2022, amounted to HKD 1,874,115 thousand, an increase from HKD 1,699,550 thousand at the end of 2021[71]. Investments and Acquisitions - The company completed the acquisition of a majority stake in PT Hongxin Algae International, enhancing its operational efficiency and cost advantages[20]. - The company plans to accelerate the expansion of Hongxin's production capacity in 2022 to meet strong customer demand[20]. - The company raised HKD 459,652,000 from borrowings during the six months ended June 30, 2022, compared to HKD 292,087,000 in the previous year, reflecting an increase of approximately 57.3%[78]. Corporate Governance - The company emphasizes good corporate governance to enhance overall effectiveness and create more value for shareholders[183]. - The company has adopted the principles and provisions of the Corporate Governance Code as its corporate governance standard since the listing date[184]. - The board consists of four executive directors, one non-executive director, and three independent non-executive directors, indicating a relatively high level of independence[184]. Future Outlook and Strategy - The company aims to become a global leader in the development and manufacturing of all-natural performance materials[14]. - The company continues to innovate and expand its product offerings, including plant-based artificial meat solutions[14]. - The company has been focusing on expanding its product offerings in hydrophilic colloid products, which may drive future revenue growth[80].

Financial Performance - The total revenue for 2021 was HKD 992.9 million, a slight decrease from HKD 997.1 million in 2020[25]. - The net profit for 2021 was HKD 267.0 million, compared to HKD 251.7 million in 2020, reflecting an increase of 6.5%[29]. - The diluted earnings per share for 2021 was HKD 0.156, up from HKD 0.14 in 2020, representing a growth of 11.4%[31]. - The gross profit for 2021 was HKD 44.0 million, compared to HKD 21.4 million in 2020, indicating a significant increase[32]. - The company recorded total sales revenue of HKD 1,163.1 million in 2021, a 32.6% increase from HKD 877.2 million in 2020, driven by strong demand for hydrophilic colloid products[37]. - Net profit for the year increased to HKD 103.9 million, up 36.9% from HKD 67.0 million in 2020, attributed to a 27.2% increase in sales volume and a 1.4 percentage point rise in gross margin[37]. - The company's agar products are ranked first in sales value in both the domestic and global markets, while carrageenan products are ranked first in China[5]. - Agar product sales amounted to HKD 291.4 million, a 20.6% increase from HKD 241.5 million in 2020; carrageenan sales reached HKD 685.7 million, up 33.1% from HKD 515.2 million[38]. Assets and Liabilities - The total assets as of December 31, 2021, were HKD 933.3 million, down from HKD 1,212 million in 2020[28]. - The group's sales cost for the year ended December 31, 2021, was HKD 892.7 million, a 30.1% increase from HKD 686.3 million in 2020, primarily due to rising raw material and labor costs[57]. - The net cash and bank balance as of December 31, 2021, was HKD 133.8 million, down from HKD 171.8 million in 2020, reflecting a decrease of HKD 38.0 million[67]. - The group's total bank borrowings amounted to HKD 594.4 million, with HKD 500.2 million due within one year[69]. - The net current assets increased to HKD 322.4 million from HKD 271.8 million in 2020, primarily due to increases in inventory and trade receivables[68]. Investments and Acquisitions - The company completed the acquisition of 82% of Hongtai Shun International Trading Co., which holds 99.83% of PT Hongxin Algae International, enhancing its production capacity in Indonesia[15]. - The company completed a share acquisition agreement to increase its stake in Green Qi Trading (Shanghai) Co., making it a wholly-owned subsidiary[43]. - The company plans to acquire 35% and 4% equity stakes in its non-wholly owned subsidiary, Green Qi (Shanghai), for a total consideration of RMB 1.42 million and RMB 163,000 respectively[92]. - The company will sell its 51% stake in Shengxi (Shanghai) for a cash consideration of HKD 12.7 million, resulting in Shengxi (Shanghai) no longer being a subsidiary[92]. - The company has completed the acquisition of a majority stake in Hongxin, a company in Indonesia, to enhance operational efficiency and access to seaweed resources[55]. Research and Development - The number of R&D personnel increased to 65 in 2021, up from 59 in 2020, highlighting a focus on innovation[7]. - The company is focusing on product research and development, particularly in high-value baking products and health foods, to drive future growth[55]. - The company plans to diversify its end products and applications, which is expected to be a key driver for future expansion[52]. Market Performance - Domestic sales accounted for 47.9% of total sales in 2021, while overseas sales made up 52.1%, with respective growth rates of 37.4% and 28.4%[39]. - The company expects further growth in overseas sales as global COVID-19 restrictions ease and international trade exhibitions resume[39]. - The company anticipates a recovery in global food demand as COVID-19 restrictions are expected to be lifted, benefiting its position as a leading food ingredient supplier[48]. Shareholder Returns - A final cash dividend of HKD 0.025 per share was proposed, totaling HKD 20.5 million, reflecting the company's commitment to shareholder returns[42]. - The company reported a final dividend of HKD 0.025 per share, totaling HKD 20.5 million for the year ended December 31, 2021, compared to HKD 20.4 million in 2020[119]. Corporate Governance - The board consists of eight directors, including four executive directors, one non-executive director, and three independent non-executive directors[187]. - The independent non-executive directors have confirmed their independence and do not hold any business or financial interests in the company[189]. - The company has adopted the corporate governance code and has complied with its principles throughout the year, with a minor deviation explained in the report[185]. - The audit committee is responsible for reviewing financial statements and overseeing risk management policies, consisting of three independent non-executive directors[180]. Employee Relations - The company has maintained strong relationships with employees, customers, and suppliers, ensuring no significant disputes occurred during the year[125]. - As of December 31, 2021, the total employee cost, including director remuneration, was HKD 119.2 million, up from HKD 91.2 million in 2020[78]. - The company has established a compensation policy based on employee performance, qualifications, and capabilities, with stock option plans adopted for eligible individuals[161]. Environmental and Regulatory Compliance - The company reported no environmental violations or exceedances for the year ending December 31, 2021, and is committed to reducing overall emissions[126]. - The company has complied with all relevant laws and regulations, with no significant violations reported during the review period[127]. Future Outlook - The company maintains a cautiously optimistic outlook for 2022, despite ongoing uncertainties related to COVID-19[55]. - The company plans to accelerate investment in the second phase of Hongxin's capacity expansion to meet growing product demand[40].

Financial Performance - Total revenue for the first half of 2021 reached HKD 494.6 million, a 15.4% increase compared to HKD 428.5 million in 2020[13] - Net profit for the period was HKD 33.7 million, slightly down by approximately 2.3% from HKD 34.5 million in 2020[13] - Overall gross margin decreased by 0.9% despite an increase in sales volume and revenue[13] - The group's revenue for the period was HKD 494.6 million, an increase of 15.4% compared to HKD 428.5 million in the same period last year[23] - The group's gross profit was HKD 106.9 million, reflecting a 10.9% increase, with an overall gross margin of 21.6%, a slight decrease of 0.9% year-on-year[25] - Gross profit for the same period was HKD 106.928 million, up from HKD 96.426 million, indicating a gross margin improvement[64] - The company reported a net profit of HKD 33.666 million for the six months ended June 30, 2021, compared to HKD 34.536 million in the prior year[64] - The total profit attributable to ordinary equity holders for the six months ended June 30, 2021, was HKD 34,086,000, down from HKD 36,126,000 in the same period of 2020, representing a decline of 5.69%[119] Revenue Breakdown - Revenue from hydrophilic colloid products grew across all categories due to economic recovery trends[13] - Sales in the Chinese market accounted for 48.3% of total sales, with a significant increase of 20.5% compared to the previous year[14] - Revenue from Europe, North America, and South America increased by approximately 13.9%, 27.5%, and 8.4% respectively during the period[14] - The revenue growth for agar, carrageenan, konjac, and blended products was recorded at 22.2%, 8.9%, 50.6%, and 26.3% respectively, with agar and carrageenan accounting for 85.7% of total revenue[23] - Revenue from external customers by region showed that China contributed HKD 238,662,000, Europe contributed HKD 165,060,000, and North America contributed HKD 15,344,000, indicating strong growth in the Chinese market[104] Expenses and Costs - The group's administrative expenses increased by 28.7% to HKD 44.9 million, primarily due to rising employee salaries and travel expenses[28] - The cost of sales for the period was HKD 494,634,000, with a gross profit margin of approximately 21.5%[100] - The company incurred administrative expenses of HKD 44,948,000, which is an increase from HKD 34,925,000 in the previous year[100] Cash Flow and Liquidity - As of June 30, 2021, the group's cash and cash equivalents totaled HKD 114.3 million, a decrease of HKD 57.5 million from December 31, 2020[35] - The current ratio as of June 30, 2021, was 1.30, down from 1.63 at the end of 2020, indicating a decrease in liquidity[35] - The company reported a net cash outflow from operating activities of HKD 15,765,000 for the six months ended June 30, 2021, compared to a net inflow of HKD 13,144,000 in the same period of 2020[76] - Cash and cash equivalents at the end of the period stood at HKD 114,287,000, an increase from HKD 98,683,000 at the end of the previous year[76] - The company’s cash and bank balances decreased to HKD 114.287 million from HKD 171.842 million at the end of 2020[69] Acquisitions and Investments - The group completed the acquisition of a majority stake in PT Hongxin Algae International, enhancing operational efficiency and proximity to seaweed resources[18] - The group completed the acquisition of 82% of Hung Tai Shun for a total consideration of HKD 60.0 million on April 15, 2021, which will increase the total designed capacity for semi-refined carrageenan to 7,985 tons per year[42] - The company completed the acquisition of 82% of Hung Tai Shun for HKD 60 million, which holds 99.83% of Hongxin, a manufacturer of semi-refined carrageenan in Indonesia[52] - Cash outflow for the acquisition of Hung Tai Shun International Trading Limited was HKD 33,143,000 after accounting for cash acquired[167] Shareholder Information - The proposed interim dividend per ordinary share is HKD 0.015, down from HKD 0.025 in 2020, totaling HKD 12,312,000[124] - The company has undistributed earnings of HKD 441,291,000 as of June 30, 2021, compared to HKD 405,751,000 as of December 31, 2020[114] - The company’s total liabilities to related parties increased to HKD 27,203,000 from HKD 106,000, indicating a substantial rise in related party transactions[173] - Mr. Chan Kin Chung holds a 19.70% equity interest in the company with 161,700,000 shares and a 71.64% interest through a concert party agreement with 588,000,000 shares[180] Financial Position - The total assets as of June 30, 2021, were HKD 1,578.267 million, an increase from HKD 1,428.765 million at the end of 2020[69] - The company’s total equity increased to HKD 802.888 million as of June 30, 2021, compared to HKD 754.105 million at the end of 2020[69] - Total liabilities increased to HKD 775,379,000 as of June 30, 2021, up from HKD 674,660,000 as of December 31, 2020, representing a growth of 14.9%[72] - The company’s bank borrowings increased to HKD 512,540,000 as of June 30, 2021, compared to HKD 461,541,000 at the end of the previous year, an increase of 11.0%[72] Risk Management - The group has limited foreign exchange risk exposure, primarily dealing in RMB and USD, and plans to monitor and hedge against any significant risks[43] - The group’s financial risk management policy has remained unchanged since the end of last year, focusing on minimizing potential adverse impacts on financial performance[91] - The group’s financial risk factors include market risk, credit risk, and liquidity risk, emphasizing the unpredictability of financial markets[90] Employee Information - The group has a total of 1,052 full-time employees, with 1,011 located in mainland China and 41 in Hong Kong and other regions[44] - The remuneration for key management personnel increased to approximately HKD 7,921,000 from HKD 6,135,000, reflecting a growth of about 29.2%[175] Corporate Governance - The company’s board and senior management have disclosed their interests in the company’s shares and related securities as required by the Securities and Futures Ordinance[180] - The company approved the pre-IPO share option plan on August 5, 2018, to recognize contributions from certain individuals towards the successful listing on the main board[193]

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]