Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 44,279,000, a decrease of 35.2% compared to RMB 68,297,000 in 2023[4] - Gross profit for the year was RMB 542,000, significantly improved from RMB 138,000 in the previous year[4] - The company reported a pre-tax loss of RMB 24,214,000, a reduction of 83.5% from a loss of RMB 146,935,000 in 2023[4] - The annual loss attributable to the owners of the company was RMB 24,520,000, compared to RMB 144,372,000 in the previous year, indicating a substantial improvement[5] - The basic and diluted loss per share was RMB 2.71, an improvement from RMB 16.39 in the previous year[5] - Revenue from customer contracts for the year ended December 31, 2024, was RMB 44,279 thousand, a decrease of 35.5% from RMB 68,297 thousand in 2023[15] - The total segment revenue for the pig slaughtering and meat trading segment was RMB 44,279 thousand for the year ended December 31, 2024, compared to RMB 65,242 thousand in 2023, reflecting a decline of 32.1%[19] - The company reported a total loss before tax of RMB 24,214 thousand for the year ended December 31, 2024, compared to a loss of RMB 146,935 thousand in 2023, indicating an improvement[19] - The company reported a loss attributable to shareholders of approximately RMB 24,520,000 for the year ended December 31, 2024, compared to a loss of RMB 144,372,000 in 2023, indicating a significant reduction in losses by about 83%[38] - Revenue for the year ended December 31, 2024, was approximately RMB 44,300,000, a decrease of about 35.2% or RMB 24,000,000 from approximately RMB 68,300,000 in 2023[49] Assets and Liabilities - Non-current assets decreased to RMB 50,070,000 from RMB 73,675,000 in 2023, reflecting a decline of 32.2%[6] - Current assets increased slightly to RMB 417,636,000 from RMB 413,802,000, showing a marginal growth of 0.8%[6] - Total liabilities increased to RMB 73,751,000 from RMB 70,511,000, representing a rise of 3.2%[6] - The company's equity attributable to owners decreased to RMB 397,040,000 from RMB 420,888,000, a decline of 5.7%[7] - Total assets for the reportable segments decreased to RMB 460,741 thousand as of December 31, 2024, from RMB 481,047 thousand as of December 31, 2023, a decline of 4.0%[24] - Total liabilities for the reportable segments slightly decreased to RMB 53,374 thousand as of December 31, 2024, from RMB 53,453 thousand as of December 31, 2023[24] - The current ratio as of December 31, 2024, was 5.7, slightly down from 5.9 in 2023[51] - Total equity as of December 31, 2024, was approximately RMB 393.7 million, down from RMB 416.7 million in 2023[51] - The group had no outstanding borrowings as of December 31, 2024, consistent with 2023[52] - The debt-to-equity ratio was zero as of December 31, 2024, unchanged from 2023[54] Operational Highlights - The company continues to focus on the production and sales of pork and related meat products in the local market of China, indicating ongoing commitment to its core business[8] - The company generated total revenue of RMB 44,279 thousand in 2024, with 100% coming from China, compared to 95.5% in 2023[28] - The company continues to monitor the pork market closely to stabilize production and operating costs amid challenges in the industry[45] - The group plans to enhance its slaughtering and processing capabilities, focusing on producing higher quality pork products and improving cost control measures[62] - The company is focused on strategic expansion and enhancing its market presence[72] - Future outlook includes potential new product development and technological advancements[72] - The company aims to improve operational efficiency and drive revenue growth through innovative strategies[72] Cost Management - The company reported a total of RMB 43,737 thousand in cost of goods sold for the year 2024, down from RMB 65,172 thousand in 2023, indicating a reduction in operational costs[36] - The company experienced a decrease in administrative expenses by approximately RMB 2,200,000 or 14.9%, totaling around RMB 12,500,000 for the year ended December 31, 2024[49] Employee and Governance - The number of employees decreased from 34 in 2023 to 30 as of December 31, 2024[60] - The board of directors consists of five members, including two executive directors and three independent non-executive directors[72] - The executive directors are Mr. Zhang Zhenghua and Ms. Xiang Yuan[72] - The board is committed to ensuring the accuracy of financial information and reporting[72] - The company is dedicated to maintaining transparency and accountability in its operations[72] Challenges and Risks - The company faced challenges in the pipeline system products business, which saw no revenue in 2024, down from RMB 3,100,000 in 2023, due to economic downturns and natural disasters[49][48] - The company incurred a write-off of property, plant, and equipment amounting to approximately RMB 18,000,000 due to severe weather conditions affecting its facilities[47] - The company reported a net expected credit loss provision of RMB 393 thousand in 2024, significantly lower than RMB 24,487 thousand in 2023, indicating improved credit quality[36] - The impairment loss on property, plant, and equipment was RMB 59,869 thousand in 2023, which was not reported in 2024, suggesting improved asset performance[36] Dividends and Shareholder Information - The company did not recommend a final dividend for the year ending December 31, 2024, compared to no dividend in 2023[37] - The board did not recommend the declaration of a final dividend for the year ending December 31, 2024, consistent with 2023[59] - The company issued a total of 922,838,000 shares as of December 31, 2024, an increase from 880,838,000 shares[61] - The group has no significant contingent liabilities as of December 31, 2024[56] Future Outlook - The management is optimistic about achieving growth targets in the upcoming fiscal periods[72] - The company is exploring opportunities for mergers and acquisitions to strengthen its market position[72] - There is an emphasis on collaboration and sharing insights within the team to enhance decision-making[72]

Financial Performance - For the six months ended June 30, 2024, the company reported revenue of RMB 31,817 thousand, a decrease of 22.6% compared to RMB 42,862 thousand in the same period of 2023[2] - The gross loss for the period was RMB 1,833 thousand, compared to a gross profit of RMB 1,718 thousand in the previous year[2] - The company incurred a loss before tax of RMB 8,599 thousand, significantly higher than the loss of RMB 1,636 thousand reported in the same period last year[2] - The total comprehensive loss attributable to owners of the company was RMB 8,490 thousand, compared to a loss of RMB 18,405 thousand in the same period of 2023[3] - Total revenue for the six months ended June 30, 2024, was RMB 31,817 thousand, with a pre-tax loss of RMB (8,599) thousand[12][13] - The company reported a loss attributable to shareholders 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, with a weighted average of 884,069,000 shares outstanding[32] - The group recorded revenue of approximately RMB 31.8 million, a decrease of about 25.9% or RMB 11.1 million compared to RMB 42.9 million in the same period last year[50] - The group experienced a gross loss of approximately RMB 1.8 million for the six months ended June 30, 2024, compared to a gross profit of approximately RMB 1.7 million in the same period last year[50] - The pork business revenue decreased by approximately 21.6% or RMB 7.9 million to approximately RMB 31.8 million, while the pipeline business revenue was zero compared to RMB 3.2 million in the previous year[50] Assets and Liabilities - Trade receivables increased to RMB 27,307 thousand from RMB 16,936 thousand, indicating a rise of 60.1%[4] - The company's total assets decreased to RMB 425,909 thousand from RMB 413,802 thousand, reflecting a marginal increase of 2.6%[4] - The company’s equity attributable to owners decreased to RMB 414,462 thousand from RMB 420,888 thousand, a decline of 1.0%[5] - Total assets as of June 30, 2024, were RMB 496,736 thousand, an increase from RMB 487,477 thousand at the end of the previous period[19] - Total liabilities for the reportable segments increased to RMB 66,263 thousand from RMB 53,453 thousand[19] - Trade receivables, net of expected credit loss provisions, increased to RMB 27,307,000 as of June 30, 2024, from RMB 16,936,000 as of December 31, 2023[35] - The expected credit loss provision for trade receivables rose to RMB 15,546,000 as of June 30, 2024, compared to RMB 13,125,000 as of December 31, 2023[36] - Trade payables increased significantly to RMB 25,459,000 as of June 30, 2024, from RMB 12,072,000 as of December 31, 2023[39] Cash Flow - Cash and cash equivalents at the end of the period were RMB 392,343 thousand, slightly down from RMB 400,085 thousand at the end of the previous year[7] - The net cash generated from operating activities was RMB 1,867 thousand, compared to a net cash used of RMB (13,718) thousand in the previous period[8] - The net cash generated from investing activities was RMB 525 thousand, down from RMB 602 thousand[8] - The net increase in cash and cash equivalents was RMB 2,392 thousand, compared to a decrease of RMB (13,116) thousand in the prior period[8] - The company’s cash and cash equivalents at the beginning of the period were RMB 389,836 thousand, down from RMB 416,389 thousand[8] - As of June 30, 2024, the group had cash and bank balances of approximately RMB 392.3 million, compared to RMB 389.8 million as of December 31, 2023[52] Expenses and Costs - The company reported an increase in administrative expenses to RMB 7,389 thousand from RMB 8,253 thousand, a decrease of 10.5%[2] - The company incurred total employee costs of RMB 662,000 for the six months ended June 30, 2024, down from RMB 1,343,000 in the same period of 2023, indicating a reduction of 50.7%[31] - Depreciation of property, plant, and equipment amounted to RMB 2,776,000, a decrease from RMB 4,525,000 in the previous year, representing a decline of 38.7%[31] - Interest income totaled RMB 746,000, down from RMB 790,000 in the previous year, reflecting a decrease of 5.6%[26] Taxation - The company reported no income tax expense for the current period, compared to RMB 3,346,000 in the previous year due to prior year provisions[27][30] - The company has not recognized deferred tax impacts during the reporting period, benefiting from tax exemptions for agricultural business operations[29] - The effective tax rate in Japan is approximately 30.6%, impacting the company's tax liabilities in that region[30] Share Capital and Dividends - No interim dividend was declared or paid for the six months ended June 30, 2024, consistent with the previous year[33] - The company issued 42,000,000 new ordinary shares on June 17, 2024, raising approximately RMB 390,000 in share capital and RMB 1,674,000 in share premium after deducting issuance costs[41] - The company’s total equity increased to RMB 7,698,000 as of June 30, 2024, reflecting the new share issuance[41] - The company's issued shares increased from 880,838,000 to 922,838,000 shares during the six months ending June 30, 2024[59] - The company issued 42,000,000 subscription shares at a price of HKD 0.053 per share on June 17, 2024, as part of a joint venture and service fee for slaughtering license application[59] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance and regular reviews[69] - The audit committee consists of three independent non-executive directors, enhancing oversight of financial reporting and risk management[69] - The company has confirmed that all directors have complied with the standard code of conduct for securities trading[68] - The company has appointed a new independent non-executive director and committee chair, ensuring fresh oversight[69] - The company is committed to maintaining and improving its corporate governance standards through regular reviews[69] Business Strategy and Market Outlook - The company is currently conducting trial operations at its joint venture slaughterhouse to assess its future operational capabilities[61] - The company anticipates a more significant market role and increased market share due to rising pig prices and ongoing market monitoring[61] - The company is exploring diversified business opportunities to create new revenue streams and enhance profitability[61] - The company is focused on expanding its pork product trade business and developing new partnerships in Southeast Asia[67] - The company acknowledges the risks associated with fluctuating pig prices due to various factors, including policy changes and market demand[61] Share Options - The new share option plan adopted on June 30, 2023, allows for the issuance of up to 88,083,800 shares, representing approximately 9.5% of the company's issued capital[62] - The company aims to attract and retain talent through the new share option plan, which aligns the interests of participants with those of shareholders[63] - The company granted a total of 88,080,000 share options, which will expire on July 27, 2024[67] - No share options were exercised, cancelled, or lapsed during the six months ending June 30, 2024, maintaining the total granted[67] - Each employee holds no more than 1% of the company's shares, indicating a broad distribution of equity incentives[65]

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].