Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 31,817,000, a decrease of 25.8% compared to RMB 42,862,000 for the same period in 2023[1] - The gross loss for the period was RMB 1,833,000, compared to a gross profit of RMB 1,718,000 in the previous year[1] - The company recorded a pre-tax loss of RMB 8,599,000, significantly higher than the pre-tax loss of RMB 1,636,000 in the same period last year[2] - The total comprehensive loss attributable to owners of the company was RMB 8,490,000, compared to a comprehensive loss of RMB 18,405,000 in the previous year[2] - The basic and diluted loss per share for the period was RMB 0.97, compared to RMB 0.54 in the previous year[2] - For the six months ended June 30, 2024, the total revenue was RMB 31,817,000, a decrease of 24.5% compared to RMB 42,862,000 for the same period in 2023[11][15][17] - The segment loss for the pig slaughtering and meat trading division was RMB (4,545,000), while the pipeline system products division reported a loss of RMB (1,000) for the same period[11][12] - The company reported a loss attributable to owners of approximately RMB 8,551,000 for the six months ended June 30, 2024, compared to a loss of RMB 4,796,000 for the same period in 2023[23] - The pork business revenue decreased by approximately 21.6% to RMB 31.8 million, down from RMB 39.7 million in the previous year[40] - The pipeline business reported zero revenue for the six months ended June 30, 2024, compared to RMB 3.2 million in the previous year[40] - Administrative expenses for the six months ended June 30, 2024, were approximately RMB 7.4 million, down from RMB 8.3 million in the previous year, reflecting a decrease of about 10.8%[40] Assets and Liabilities - As of June 30, 2024, total assets amounted to RMB 425,909,000, an increase from RMB 413,802,000 at the end of 2023[3] - Current liabilities increased to RMB 85,498,000 from RMB 70,511,000 at the end of 2023, primarily due to an increase in trade payables[4] - The company's cash and cash equivalents stood at RMB 392,343,000, slightly up from RMB 389,836,000 at the end of 2023[3] - The net asset value of the company was RMB 410,986,000, down from RMB 416,688,000 at the end of 2023[4] - Total assets as of June 30, 2024, amounted to RMB 490,388,000, an increase of 1.8% from RMB 481,047,000 as of December 31, 2023[14] - The total liabilities increased to RMB 66,263,000 as of June 30, 2024, compared to RMB 53,453,000 as of December 31, 2023, reflecting a rise of 24%[14] - Trade receivables increased to RMB 42,853,000 as of June 30, 2024, up from RMB 30,061,000 as of December 31, 2023[27] - The provision for expected credit losses on trade receivables rose to RMB 15,546,000 as of June 30, 2024, compared to RMB 13,125,000 as of December 31, 2023[28] - Trade payables increased significantly to RMB 25,459,000 as of June 30, 2024, compared to RMB 12,072,000 as of December 31, 2023, representing an increase of approximately 111.5%[31] Cash Flow and Financial Management - Interest income from bank deposits was RMB 575,000, slightly down from RMB 602,000 in the previous year[17] - Government grants received during the period amounted to RMB 1,261,000, which was not reported in the previous year[17] - The company incurred a tax expense of RMB 1,805,000 for the six months ended June 30, 2024, compared to RMB 1,577,000 for the same period in 2023[21] - The company recorded a loss before tax of RMB (8,599,000) for the six months ended June 30, 2024, compared to a loss of RMB (1,636,000) for the same period in 2023[21] - The total new additions of property, plant, and equipment during the interim period were approximately RMB 50,000, significantly lower than RMB 4,216,000 for the same period in 2023[25] - The fair value of trading investments was approximately RMB 4,917,000 as of June 30, 2024, compared to RMB 4,541,000 as of December 31, 2023[26] - Other receivables, net of expected credit loss provisions, were RMB 1,342,000 as of June 30, 2024, down from RMB 2,489,000 as of December 31, 2023, indicating a decrease of approximately 46.0%[30] Corporate Governance and Management Changes - 黄玉麟辞任独立非执行董事，自2024年2月6日起生效[60] - 陈冠楠被任命为独立非执行董事及多个委员会主席，自2024年2月6日起生效[60] - 审核委员会由三名独立非执行董事组成，陈冠楠为主席[61] - 截至2024年6月30日的未审计简明综合财务报表已与管理层审阅[61] - 中期业绩公告将于香港交易所及公司网站发布[62] - 中期报告将及时寄发给公司股东[62] - 董事会包括执行董事覃媛玲及三名独立非执行董事[63] Strategic Initiatives - The company successfully obtained a slaughter license in 2024, which is expected to enhance operational capabilities[37] - The company adopted a more conservative strategy for the pipeline system products business, which was suspended in the first half of 2024 due to economic downturns and increased costs[39] - The group is currently conducting trial operations at a joint venture slaughterhouse to assess its potential for full operation, which aims to improve production efficiency and reduce costs[56] - The company is exploring diversified business opportunities to develop more profitable operations and create new revenue sources, anticipating a larger market share in the future[56] Employment and Share Capital - As of June 30, 2024, the company employed 30 staff members, an increase from 21 as of December 31, 2023[50] - The issued share capital increased from 880,838,000 shares to 922,838,000 shares during the reporting period, following the issuance of 42,000,000 subscription shares[51] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the review period[46] - The group maintained a debt-to-equity ratio of 0 as of June 30, 2024, consistent with the previous reporting period[43] - The group has no foreign exchange hedging in place but monitors foreign exchange risks and will consider hedging when necessary[44] - The board has resolved not to declare any interim dividend for the six months ended June 30, 2024, consistent with the previous year[49]

Revenue and Profitability - The group's revenue from pig slaughtering and meat trading slightly decreased from approximately RMB 65,900,000 in 2022 to RMB 65,200,000 in 2023, with pork prices fluctuating between RMB 14.20 and RMB 17.50 per kilogram[6]. - For the fiscal year ending December 31, 2023, the group recorded revenue of approximately RMB 68,300,000, a decrease of about 6.4% or RMB 4,700,000 compared to approximately RMB 72,900,000 in 2022[13]. - The gross profit for the year was approximately RMB 100,000, down from RMB 1,800,000 in 2022, primarily due to a decrease in revenue from pipeline system products[13]. - The group reported a loss attributable to owners of the company of approximately RMB 144,400,000 for 2023, compared to a loss of RMB 5,600,000 in 2022, with the increase in loss mainly due to impairment losses and depreciation[15]. - The company reported a total loss for the year of RMB 150,282,000, compared to a loss of RMB 8,957,000 in the previous year, reflecting a substantial increase in losses[191]. - Basic and diluted loss per share was RMB 16.39, compared to RMB 0.64 in 2022, highlighting a significant deterioration in earnings per share[194]. - The total comprehensive loss for the year was RMB 148,289,000, compared to RMB 13,159,000 in 2022, indicating a significant increase in overall losses[194]. Asset and Liquidity Management - As of December 31, 2023, the group maintained cash and bank balances of approximately RMB 389,800,000, down from RMB 416,400,000 in 2022[17]. - The current ratio as of December 31, 2023, was 5.9, compared to 5.1 in 2022, indicating improved liquidity[17]. - Non-current assets decreased from RMB 195,521,000 in 2022 to RMB 73,675,000 in 2023, indicating a substantial reduction in asset base[196]. - Current assets also declined from RMB 455,991,000 in 2022 to RMB 413,802,000 in 2023, reflecting a decrease in liquidity[196]. - Cash and cash equivalents decreased from RMB 416,389,000 in 2022 to RMB 389,836,000 in 2023, reflecting a decline in cash reserves[196]. - Total net assets decreased from RMB 560,977 thousand in 2022 to RMB 416,688 thousand in 2023, representing a decline of approximately 25.7%[199]. - Equity attributable to owners of the company fell from RMB 563,583 thousand in 2022 to RMB 420,888 thousand in 2023, a decrease of about 25.3%[199]. Impairment and Losses - The company recognized impairment losses of approximately RMB 59.9 million due to severe weather conditions affecting its farms[10]. - The Group recognized an impairment loss of approximately RMB 59,869,000 for property, plant, and equipment this year, compared to no impairment loss in 2022[178]. - The impairment assessment was influenced by factors such as prolonged low domestic pork prices and the ongoing outbreak of African swine fever, indicating a need for significant management judgment[177][178]. - The audit focused on the management's judgments and estimates related to the impairment assessment due to its significance[179]. Business Operations and Strategy - The company plans to restart its slaughtering business, which is expected to improve profit margins after obtaining operational and slaughtering permits[7]. - The company has adopted a conservative strategy in its breeding business, refraining from large-scale breeding operations due to low pork prices and the impact of African swine fever[9]. - The company has established a joint venture with partners to restore its pig slaughtering operations, which is anticipated to lower production costs further[7]. - The company has taken measures to outsource pig slaughtering processes to independent slaughterhouses to maintain operations[6]. - The group plans to optimize resource allocation between slaughtering and pipeline system product businesses to enhance cost control and shareholder benefits[32]. Corporate Governance and Compliance - The company has adopted all corporate governance codes as per the listing rules and has complied with these codes throughout the year[102]. - The board consists of four members, including one executive director and three independent non-executive directors, meeting the requirement of at least three independent directors[103]. - The independent non-executive directors have confirmed their independence as per the listing rules, ensuring no conflicts of interest[109]. - The company has established a written guideline for employees regarding securities trading to prevent insider trading violations[120]. - The board is responsible for overseeing the company's strategy, financial performance, and risk management policies[107]. Employee and Director Matters - The company emphasizes employee development and has established long-term relationships with suppliers to ensure quality and ethical standards[65]. - The executive directors' service contracts are for an initial term of three years, automatically renewing for one year unless terminated[70]. - The remuneration committee held two meetings in 2023 to review the compensation policies for all directors and senior management, with full attendance from its members[125]. - The company aims to attract and retain talent through the stock option plan, providing additional rewards for contributions to the company's value[79]. Environmental and Sustainability Efforts - The group has installed waste treatment facilities at its farms and production bases to promote environmental sustainability[62]. - The company has established a Mandatory Provident Fund scheme for all eligible Hong Kong employees, contributing 5% of relevant income, capped at HKD 30,000 per month[57]. Dividend Policy - The board does not recommend the declaration of a final dividend for the year ending December 31, 2023[27]. - The company has adopted a dividend policy since December 31, 2018, which considers factors such as profitability and financial condition when declaring dividends[166]. - The board will review the dividend policy periodically, with no guarantee of specific dividend amounts being declared at any given time[168].

Financial Performance - For the year ending December 31, 2023, the total revenue was RMB 68,297,000, a decrease of 6.3% compared to RMB 72,947,000 in 2022[5] - The gross profit for 2023 was RMB 138,000, significantly down from RMB 1,841,000 in 2022, indicating a decline in profitability[5] - The total comprehensive loss for the year was RMB 150,282,000, compared to a loss of RMB 8,957,000 in the previous year, reflecting a substantial increase in losses[5] - The company reported a loss per share of RMB 16.39 for 2023, compared to RMB 0.64 in 2022, indicating a worsening financial position[7] - The group reported a total loss before tax of RMB 146,935,000 for the year, compared to the previous year's performance[27] - The company reported a loss attributable to shareholders of approximately RMB 144,372,000 for the year ended December 31, 2023, compared to a loss of RMB 5,645,000 in 2022, indicating a significant increase in losses[50] - The group recorded a loss attributable to owners of approximately RMB 144,400,000 in 2023, compared to a loss of RMB 5,600,000 in 2022, mainly due to impairment losses and depreciation[65] Assets and Liabilities - The company's total assets decreased to RMB 413,802,000 in 2023 from RMB 455,991,000 in 2022, indicating a reduction in asset base[9] - The net asset value dropped to RMB 416,688,000 in 2023 from RMB 560,977,000 in 2022, showing a significant decline in equity[11] - The total liabilities decreased to RMB 70,511,000 in 2023 from RMB 90,231,000 in 2022, reflecting improved management of obligations[9] - Total assets for reportable segments decreased to RMB 481,047 thousand in 2023 from RMB 640,675 thousand in 2022, representing a decline of 25%[33] - Total liabilities for reportable segments increased to RMB 53,453 thousand in 2023 from RMB 35,766 thousand in 2022, marking a rise of 49.5%[33] Revenue Breakdown - Revenue from customer contracts for the year ended December 31, 2023, was RMB 68,297,000, a decrease of 6.5% from RMB 72,947,000 in 2022[23] - Sales of pork products amounted to RMB 65,242,000, down from RMB 65,851,000 in the previous year, reflecting a decline of 0.9%[23] - Pipeline system product sales decreased significantly to RMB 3,055,000 from RMB 7,096,000, representing a decline of 57.0%[23] - Revenue from the main products and services in the pig slaughtering and meat trading segment was RMB 65,242 thousand in 2023, down from RMB 65,851 thousand in 2022[37] - Revenue from the pig slaughtering and meat trading business decreased by approximately RMB 600,000 or 0.9% to about RMB 65,200,000 in 2023[64] - Revenue from the pipeline system products business decreased by approximately RMB 4,000,000 or 56.9% to about RMB 3,100,000 in 2023[64] Trade Receivables and Payables - Trade receivables increased to RMB 16,936,000 in 2023 from RMB 11,142,000 in 2022, suggesting a rise in credit sales[9] - Trade receivables increased to RMB 30,061,000 in 2023 from RMB 18,415,000 in 2022, with an expected credit loss provision of RMB 13,125,000, up from RMB 7,273,000 in the previous year[53] - Trade payables rose to RMB 12,072,000 in 2023, compared to RMB 6,556,000 in 2022, reflecting increased procurement activities[55] Employee and Operational Costs - The company incurred total employee costs of RMB 2,405,000 in 2023, down from RMB 2,703,000 in 2022, indicating a reduction in overall employee expenses[47] - The depreciation expense for property, plant, and equipment was RMB 9,661,000 in 2023, compared to RMB 9,050,000 in 2022, showing an increase in asset depreciation[51] Taxation and Compliance - The effective tax rate in Japan for the year ended December 31, 2023, was approximately 30.6%, consistent with the previous year[46] - The company’s Hong Kong profits tax is calculated at a rate of 8.25% on the first HKD 2,000,000 of profits, and 16.5% on profits exceeding that amount[45] - The company’s Chinese subsidiaries were exempt from corporate income tax for the reporting periods, reflecting compliance with applicable tax regulations[45] Corporate Governance and Future Plans - The audit committee, composed of three independent non-executive directors, reviewed the financial statements for the year ending December 31, 2023[89] - The independent auditor confirmed that the figures in the annual performance announcement are consistent with the consolidated financial statements for the year[91] - The annual performance announcement and annual report will be published on the Hong Kong Stock Exchange and the company's website[92] - The board of directors consists of four members, including one executive director and three independent non-executive directors[94] - The company has not disclosed any new product launches or technological advancements during the reporting period[13] - There are no indications of market expansion or mergers and acquisitions in the current financial report[13] - The group does not plan to declare a final dividend for the year ended December 31, 2023[76] - There are no significant investment or capital asset plans for the group in the near future[73] Joint Ventures and Strategic Initiatives - The new joint venture is expected to enhance the slaughtering business, allowing for better cost control and higher quality pork products, thereby increasing market share in China[79] - The company aims to optimize resource allocation between slaughtering and pipeline system products while implementing cost control measures to benefit shareholders[79] - A new joint venture company received operational and slaughtering licenses on January 31, 2024, following the completion of all conditions outlined in a previous announcement[81] Miscellaneous - The company has not purchased, sold, or redeemed any of its listed securities during the year ending December 31, 2023[82] - As of December 31, 2023, the group maintained cash and bank balances of approximately RMB 389,800,000, down from RMB 416,400,000 in 2022[66] - The current ratio as of December 31, 2023, was 5.9, compared to 5.1 in 2022[66] - The group had no outstanding borrowings as of December 31, 2023[67] - As of December 31, 2023, the company employed 34 staff members, an increase from 21 in 2022[77] - The company has issued a total of 880,838,000 shares as of December 31, 2023[78] - No significant post-year-end events occurred as of December 31, 2023[81]

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 42,862,000, an increase of 130.5% compared to RMB 18,567,000 in the same period of 2022[4] - Gross profit for the same period was RMB 1,718,000, compared to a gross loss of RMB 1,326,000 in 2022[4] - The company reported a net loss of RMB 4,982,000 for the six months ended June 30, 2023, compared to a net loss of RMB 968,000 in the prior year[4] - Total comprehensive loss for the period was RMB 18,682,000, compared to a total comprehensive income of RMB 11,116,000 in 2022[6] - Basic and diluted loss per share for the period was RMB 0.54, compared to RMB 0.05 in the same period of 2022[6] - The company reported a loss attributable to owners of the company of approximately RMB 4,796,000 for the six months ended June 30, 2023, compared to a loss of RMB 415,000 for the same period in 2022[43] Cash Flow and Assets - Cash and cash equivalents at the end of the period were RMB 400,085,000, down from RMB 416,389,000 at the beginning of the period[14] - The company experienced a net cash outflow from operating activities of RMB 13,718,000, compared to a net cash inflow of RMB 55,235,000 in the same period last year[14] - The company's total assets decreased to RMB 449,922,000 from RMB 455,991,000 at the end of 2022[8] - The company's current assets net value was approximately RMB 352.1 million as of June 30, 2023, compared to approximately RMB 365.8 million as of December 31, 2022[65] Revenue Segmentation - For the six months ended June 30, 2023, the total revenue was RMB 42,862,000, with segment revenue from pig slaughtering and meat trading at RMB 39,656,000 and pipeline system products at RMB 3,206,000[21] - Revenue from China was RMB 39,656,000, up 114.5% from RMB 18,449,000 in the previous year, while revenue from Japan increased to RMB 3,206,000 from RMB 118,000[30] - The segment performance showed a loss of RMB 101, with pig slaughtering and meat trading generating a profit of RMB 522, while pipeline system products incurred a loss of RMB 623[21] Liabilities and Provisions - The total liabilities for the reportable segments increased to RMB 38,238,000 from RMB 35,766,000 as of December 31, 2022[26] - The expected credit loss provisions for the current period were RMB 65,000, compared to a reversal of RMB 4,978,000 in the previous period[21] - The expected credit loss provision for trade receivables decreased to RMB 6,592,000 as of June 30, 2023, from RMB 7,273,000 as of December 31, 2022, a reduction of 9.4%[49] Inventory and Receivables - Trade receivables increased to RMB 17,764,000 as of June 30, 2023, from RMB 11,142,000 at the end of 2022[8] - Inventory levels rose to RMB 5,140,000 from RMB 2,110,000 in the previous year[8] - Trade receivables increased to RMB 24,356,000 as of June 30, 2023, from RMB 18,415,000 as of December 31, 2022, representing a growth of 32.5%[49] Corporate Governance and Compliance - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming all directors have complied with it during the six months ending June 30, 2023[96] - The audit committee is responsible for overseeing the financial controls, risk management, and internal control systems, and has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2023[99] - The company has adhered to the corporate governance code during the six months ending June 30, 2023[98] Future Outlook and Strategy - The group expects a gradual recovery in pig prices and plans to restart pig farming operations later this year to provide quality products to the market[82] - The joint venture is working on obtaining formal slaughtering permits, which are expected to be approved soon, enhancing production efficiency and reducing costs[82] - The group is actively seeking acquisition opportunities for slaughterhouses and farms, as well as exploring new revenue sources such as agricultural products[82] - The new agricultural business is anticipated to contribute additional profits and provide stable, high-quality feed for the group's farming operations[82] - The group aims to play a significant role in the pork supply chain and increase market share, leveraging its experience and existing customer network[82]

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 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。 HUISHENG INTERNATIONAL HOLDINGS LIMITED 惠 生 國 際 控 股 有 限 公司 （於開曼群島註冊成立之有限公司） 1340 （股份代號： ） 截至二零二三年六月三十日止六個月 中期業績公告 惠生國際控股有限公司（「本公司」）董事（「董事」）會（「董事會」）公佈本公司及其附屬 公司（統稱「本集團」）截至二零二三年六月三十日止六個月的未經審核簡明綜合中期 財務報表，連同二零二二年同期的未經審核比較數字。此等簡明綜合中期財務報表 未經審核，但已經由本公司審核委員會（「審核委員會」）作出審閱。 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 二零二三年 二零二二年 附註 人民幣千元 人民幣千元 （未經審核） （未經審核） 3 42,862 18,567 收益 ...

Business Operations - The company operates in the production and sale of pork and related meat products in Changde, Hunan Province, China, and has faced significant impacts from COVID-19, leading to a decline in pork consumption and processing capacity [8]. - The main business includes pig farming, slaughtering, and meat sales, with revenue primarily from these activities [51]. - The company is involved in technical consulting services related to design, application, implementation, and installation [51]. Joint Ventures and Partnerships - In November 2022, the company established a joint venture with Hunan Fengrun Agricultural Development Co., Ltd., with a registered capital of RMB 10 million, where the company holds a 60% equity interest [11]. - The joint venture aims to engage in pig slaughtering and related businesses in China, with expectations to obtain slaughtering permits and commence trial operations in the first half of 2023 [11]. - The company is leveraging its partner's resources to assist in obtaining necessary permits for its slaughtering operations, aiming to enhance service quality [11]. - A joint venture was established in November 2022 in Hunan, China, with a registered capital of RMB 10 million, where the company holds a 60% equity stake [26][27]. - A joint venture agreement was established on November 30, 2022, with a registered capital of RMB 10,000,000, where Hunan Huisheng holds a 60% equity interest [101]. Financial Performance - For the year ended December 31, 2022, the company recorded revenue of approximately RMB 72.9 million, a decrease of about 10.3% or RMB 8.4 million compared to RMB 81.3 million in 2021 [15]. - The gross profit for the year was approximately RMB 1.8 million, down from RMB 2.6 million in 2021, primarily due to a significant decline in the pipeline systems product business [15]. - The pork business saw an increase in revenue of approximately RMB 9.3 million or 16.5%, reaching about RMB 65.8 million in 2022 [15]. - Revenue from the pipeline business decreased by approximately RMB 17.7 million or 71.4%, down to about RMB 7.1 million in 2022 [15]. - The company reported a pre-tax loss of RMB 8,957,000 for 2022, compared to a loss of RMB 31,883,000 in 2021, indicating an improvement in financial performance [196]. - The total comprehensive loss for the year was RMB 13,159,000, a reduction from RMB 23,220,000 in the previous year [196]. - The company reported a total annual loss attributable to owners of RMB 5,645,000 for the year ended December 31, 2022, compared to a loss of RMB 31,771,000 in 2021, representing a significant improvement [198]. - The total comprehensive expenses attributable to owners decreased to RMB 9,767,000 in 2022 from RMB 23,128,000 in 2021, indicating a reduction of approximately 57.8% [198]. - The basic and diluted loss per share for the owners was RMB 0.64 in 2022, a notable decrease from RMB 3.61 in the previous year [198]. Operational Strategies - The company has implemented cost control measures and outsourced pig slaughtering to independent facilities to stabilize production costs and maximize profit margins [8]. - The company is focusing on developing its supply chain and improving operational efficiency to enhance profitability and competitiveness amid rising cost pressures [9]. - The company has adopted a cautious approach to resuming its pig farming business to minimize operational risks and costs [8]. - The company plans to focus on restoring its pig farming business and expanding slaughtering capacity to regain market share in the pork supply chain [35]. - The company anticipates a return to traditional consumer behavior in the post-pandemic era, expecting its fresh pork product business to rebound in 2023 [9]. - The company’s management is optimistic about the recovery of the pork market following a downturn in prices that began in early 2022, with signs of a new cycle emerging [8]. Corporate Governance - The company has complied with the corporate governance code, except for certain provisions regarding independent non-executive directors and audit committee composition [108]. - The board currently consists of four members, including one executive director and three independent non-executive directors, meeting the requirement of at least three independent directors [109]. - The company has not appointed a chairman or CEO, with responsibilities currently assumed by board members [113]. - The board is responsible for overseeing financial performance, major investments, and risk management strategies [114]. - Independent non-executive directors provide independent advice on business strategies and performance to protect the interests of the company and its shareholders [115]. - The board meets at least four times a year to review financial performance and significant decisions [116]. - The company emphasizes board diversity, considering factors such as gender, age, cultural background, and professional experience to enhance performance [120]. - The company has established a written guideline for employees regarding securities trading to prevent insider trading [126]. - The company aims to maintain good corporate governance practices through regular reviews and recommendations for policy updates by the Nomination Committee [140]. Risk Management - The company has established a risk management manual to clarify the roles of management, the board, and the audit committee in risk management [151]. - The internal audit team conducts independent assessments of the risk management and internal control systems, reporting findings to the board [150]. - The board confirmed its overall responsibility for the effectiveness of the group's risk management and internal control systems, with no significant issues identified during the annual review [150]. Shareholder Relations - The company will convene a special general meeting within two months upon receiving a valid request from shareholders holding at least 10% of the voting shares [166]. - Shareholders can submit agenda items for meetings with a notice period of at least 21 days for special resolutions and 14 days for ordinary resolutions [169]. - The company maintains open communication with shareholders and investors, regularly reviewing its policies to ensure effective information dissemination [162]. Environmental Sustainability - The company has installed waste treatment facilities at its farms and production bases to promote environmental sustainability [66].

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，並明確表示概不會就本公告全部或任何部 分內容而產生或因依賴該等內容而引致之任何損失承擔任何責任。 HUISHENG INTERNATIONAL HOLDINGS LIMITED 惠 生 國 際 控 股 有 限 公司 （於開曼群島註冊成立之有限公司） 1340 （股份代號： ） 截至二零二二年十二月三十一日止年度 年度業績公告 惠生國際控股有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈本公司及 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的未經審核綜合業績 （「全年業績」）以及截至二零二一年十二月三十一日止年度之可比較金額。 ...

Financial Performance - As of December 31, 2021, the group's receivables amounted to approximately RMB 251.3 million, a decrease of 22.1% from RMB 322.5 million in 2020[9]. - The group recorded interest income from receivables of approximately RMB 1.1 million for the year ended December 31, 2021, down 92.7% from RMB 15.0 million in 2020[9]. - The group has seen a 32.6% reduction in the provision for expected credit losses, decreasing to approximately RMB 2.9 million from RMB 4.3 million in 2020[16]. - The company has recovered approximately RMB 236.6 million in receivables, accounting for 94.2% of the receivables as of December 31, 2021[28]. Loan Management - There were 9 outstanding loans as of December 31, 2021, with a total outstanding balance of RMB 248.5 million[11]. - The company has issued overdue notices to individual A for an outstanding loan balance of approximately RMB 243,000, which has reached maturity[12]. - The outstanding loans to companies 1 and 2 have been extended to a 5-year term with waived interest, requiring semi-annual repayments[12]. - The company is committed to taking further legal action regarding overdue balances as necessary[12]. - The company has established various loan agreements with borrowers, including individuals and companies, with loan amounts totaling RMB 105 million and interest rates ranging from 9.6% to 12%[38][39]. - The company has a loan amount of RMB 59.98 million with a repayment term of five years, with no collateral required[42]. - The company has a loan amount of RMB 125.42 million under a debt restructuring agreement, with repayments scheduled in ten installments over five years[46]. - The company has extended loan terms multiple times, with some loans now due in July 2023[31][32]. Compliance and Regulatory Issues - The company acknowledges a breach of Listing Rules due to failure to timely disclose loan agreements and restructuring agreements, which constitute major transactions[70]. - The company has implemented remedial actions, including internal training on compliance with Listing Rules and establishing a committee for future loan transactions[73]. - The company will ensure timely disclosures in the future to comply with Listing Rules[74]. - The company expresses regret for the non-compliance incident, emphasizing that it was an unintentional oversight[73]. - The company has maintained regular communication with professional advisors regarding compliance with Listing Rules[73]. Future Plans and Strategies - The company plans to issue a circular to shareholders by December 15, 2022, detailing financial assistance agreements and financial information[6]. - The group plans to renegotiate loan terms with certain borrowers and expedite repayment dates to improve financial conditions[13]. - The company will cease new lending activities until all existing loans are repaid, in light of the current economic instability and to prevent future compliance issues[73]. - The company has engaged in discussions to ensure that all outstanding loans will be cleared by the end of 2022[49]. Risk Management - The group has established strict credit risk assessment procedures to ensure comprehensive risk management[22]. - The expected credit loss model is based on a three-stage approach, with provisions determined by the credit risk characteristics of receivables[21]. - As of the end of the reporting period, the group regularly reviews the recoverable amounts of individual debts to ensure adequate provisions for uncollectible amounts[18]. Business Operations - The group is engaged in the production and sale of pork and related meat products, as well as providing technical consulting services and financial services[50]. - The company has a wholly-owned subsidiary in Hong Kong that has been licensed to conduct lending business since April 2017[51]. - The loan agreements are deemed fair and reasonable, providing stable income and cash flow for the company[63]. - The financial support provided to certain individuals and companies constitutes a discloseable transaction under the listing rules[66].

Financial Performance - Total revenue for the six months ended June 30, 2022, was RMB 18,567,000, a decrease of 63.8% compared to RMB 51,380,000 for the same period in 2021[3] - Gross loss for the period was RMB 1,326,000, compared to a gross profit of RMB 2,277,000 in the previous year[3] - Other income increased to RMB 4,926,000 from RMB 4,678,000 year-on-year, reflecting a growth of 5.3%[3] - Total comprehensive income for the period was RMB 11,116,000, up from RMB 8,011,000 in the same period last year, representing a 38.5% increase[4] - The company reported a net loss attributable to owners of RMB 415,000, compared to a loss of RMB 1,202,000 in the previous year[4] - The company’s basic and diluted loss per share was RMB 0.05, an improvement from RMB 0.14 in the previous year[4] - The company reported a pre-tax loss of RMB 968,000 for the first half of 2022, compared to a pre-tax loss of RMB 799,000 in the same period of 2021[23] - The group reported a loss attributable to owners of approximately RMB 0.4 million for the six months ended June 30, 2022, compared to a loss of approximately RMB 1.2 million in the same period of 2021[69] Revenue Breakdown - The total revenue from the pig slaughtering and meat trading segment for the first half of 2022 was RMB 18,449,000, a decline of 41% from RMB 31,237,000 in the same period of 2021[21] - The total revenue from the pipeline system products segment for the first half of 2022 was RMB 118,000, down from RMB 20,143,000 in the same period of 2021[21] - Revenue from China decreased to RMB 18,449 thousand for the six months ended June 30, 2022, down 41.0% from RMB 31,237 thousand for the same period in 2021[30] - Revenue from Japan significantly dropped to RMB 118 thousand for the six months ended June 30, 2022, compared to RMB 20,143 thousand for the same period in 2021, a decline of approximately 99.4%[30] - The group's pork business and pipeline business recorded revenues of approximately RMB 18.4 million and RMB 0.1 million, respectively, for the six months ended June 30, 2022, compared to RMB 31.2 million and RMB 20.1 million in the same period of 2021, indicating a significant decline in revenue[66] Cash and Assets - Cash and cash equivalents increased to RMB 186,715,000 from RMB 131,581,000, showing a growth of 41.9%[6] - Total assets as of June 30, 2022, were RMB 468,713,000, compared to RMB 452,467,000 at the end of 2021, indicating a 3.6% increase[6] - The total assets for the pig slaughtering and meat trading segment as of June 30, 2022, were RMB 421,749,000, an increase from RMB 374,387,000 at the end of 2021[26] - The total liabilities of reportable segments rose to RMB 30,467 thousand as of June 30, 2022, from RMB 29,137 thousand as of December 31, 2021, an increase of 4.6%[28] - The group's current assets net value was approximately RMB 384.8 million as of June 30, 2022, compared to RMB 368.2 million as of December 31, 2021[70] Expenses and Costs - Total employee costs decreased to RMB 1,982,000 in the first half of 2022 from RMB 2,538,000 in the same period of 2021, reflecting a reduction of approximately 22%[40] - The cost of inventory recognized as an expense was RMB 17,363,000 for the six months ended June 30, 2022, down from RMB 46,947,000 in the same period of 2021, indicating a decrease of approximately 63%[40] - The average selling price of fresh pork and by-products decreased by approximately 40.5% and 31.6%, respectively, compared to the same period last year, aligning with a national average wholesale price drop of about 42.4%[66] - The group's administrative expenses increased to approximately RMB 9.4 million for the six months ended June 30, 2022, up from RMB 7.6 million in the same period of 2021, primarily due to additional costs associated with the pork business[67] Share Options and Governance - The total number of share options available under the share option plan is 88,083,800 shares, representing approximately 10.0% of the company's issued share capital[91] - A total of 88,080,000 share options were granted on July 28, 2021, with an exercise price of HKD 0.083 per share[91] - The company aims to attract and retain talent through the share option plan, aligning the interests of participants with those of shareholders[93] - The company has adopted a standard code of conduct for securities trading, confirming compliance by all directors for the six months ending June 30, 2022[101] - The company has maintained compliance with all corporate governance code provisions for the six months ending June 30, 2022, except for certain deviations mentioned[102] Operational Developments - The company has outsourced pig slaughtering processes to independent slaughterhouses to stabilize production costs and maximize profit margins[63] - The company plans to achieve operational normalization and meet pollution discharge standards by potentially obtaining government approval in the second or third quarter of 2023[62] - The company anticipates moderate increases and stabilization in pig prices in the second half of 2022 due to uncertainties from COVID-19 and government policies in China[86] - A joint venture framework agreement has been established for a new slaughterhouse with an annual capacity of 500,000 pigs, expected to be completed in 2023[86] - The joint venture aims to enhance the company's position in the competitive pork industry and provide opportunities for resource acquisition[87] Compliance and Audit - The audit committee is responsible for overseeing the financial monitoring, risk management, and internal control systems of the group, and has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2022[108] - There were changes in the board of directors, with two independent non-executive directors resigning on June 30, 2022, resulting in a temporary non-compliance with listing rules regarding the minimum number of independent directors[105] - The company has not established any arrangements that would allow directors to benefit from purchasing shares or debt securities of the company or any other entity during the six months ending June 30, 2022[99]

Financial Performance - The group recorded revenue of approximately RMB 81,300,000 for the year ended December 31, 2021, an increase of about 174.0% or RMB 51,600,000 compared to the same period last year[22]. - The gross profit for the year was approximately RMB 2,600,000, a turnaround from a gross loss of approximately RMB 2,100,000 in 2020[22]. - The pork business revenue increased by approximately RMB 38,300,000 or 210.4% to about RMB 56,500,000 in 2021[22]. - The pipeline business revenue also rose by approximately RMB 13,300,000 or 116.3% to about RMB 24,800,000 in 2021[22]. - The company reported a net loss of RMB 31,883,000 for 2021, an improvement from a net loss of RMB 36,726,000 in 2020, reflecting a reduction in losses by approximately 13%[196]. - Total revenue for the year ended December 31, 2021, was RMB 81,291,000, a significant increase from RMB 29,663,000 in 2020, representing a growth of 174%[194]. - Gross profit for 2021 was RMB 2,602,000, compared to a gross loss of RMB 2,083,000 in 2020, indicating a turnaround in profitability[194]. - The total comprehensive loss for the year was RMB 23,220,000, down from RMB 40,750,000 in 2020, marking a 43% reduction in comprehensive losses[196]. Operational Challenges - The company faced operational losses in its pork business due to rising breeding costs and disease impacts, leading to a cautious recovery strategy[17]. - The company has outsourced slaughtering processes to independent facilities to improve cost efficiency amid high breeding costs[18]. - The company is exploring potential investment opportunities to mitigate business risks and enhance profitability during challenging market conditions[21]. - The company aims to balance resources between its pork and pipeline businesses to maximize shareholder returns[21]. Business Diversification - The company has diversified into the sales and distribution of pipeline system products, achieving a gross margin of approximately 10% to 20%[19]. - The company is committed to seeking various fundraising channels to expand its pipeline business[19]. - The company is renting out one of its farms to generate rental income while maintaining operations at another farm[18]. Financial Position - As of December 31, 2021, the group maintained cash and bank balances of approximately RMB 131,600,000, compared to RMB 14,900,000 in 2020[25]. - The current ratio as of December 31, 2021, was 5.4, up from 1.8 in 2020[25]. - The group had no outstanding borrowings as of December 31, 2021, compared to RMB 19,000,000 in 2020[26]. - Cash and cash equivalents increased significantly to RMB 131,581,000 in 2021 from RMB 14,936,000 in 2020, indicating improved liquidity[199]. - The company’s non-current assets decreased to RMB 206,250,000 in 2021 from RMB 519,050,000 in 2020, primarily due to the reduction in receivables[199]. Governance and Compliance - The company has adopted the corporate governance code and continuously reviews its governance standards[104]. - The board consists of six members, including two executive directors and four independent non-executive directors, meeting the regulatory requirements[106]. - The company has established a mandatory provident fund plan for eligible Hong Kong employees, contributing 5% of relevant income, capped at HKD 30,000 per month[66]. - The company has no significant disputes with employees, suppliers, or customers during the fiscal year ending December 31, 2021[76]. - The company has no serious violations of relevant laws and regulations that significantly impact its business and operations as of December 31, 2021[72]. Risk Management - The company confirmed the effectiveness of its risk management and internal control systems through regular annual reviews, with no significant issues identified[146]. - The board is responsible for the overall effectiveness of the risk management and internal control systems, ensuring compliance with legal and regulatory requirements[144]. - The company has a dedicated internal audit team that independently assesses the adequacy and effectiveness of risk management and internal control systems[144]. Shareholder Relations - The company maintains open communication with shareholders and investors, utilizing financial reports and annual general meetings as primary channels for information dissemination[157]. - Shareholders holding at least 10% of the paid-up capital have the right to request a special general meeting to address specified matters[158]. - The company has established procedures for shareholders to submit agenda items for general meetings, ensuring transparency and engagement[163]. Environmental Commitment - The company is committed to environmental sustainability, having installed waste treatment facilities at its farms and production bases[71].