Financial Performance - For the six months ended June 30, 2021, the company reported revenue of RMB 51,380,000, a significant increase from RMB 1,858,000 in the same period of 2020, representing a growth of approximately 2,661%[4] - The gross profit for the same period was RMB 2,277,000, compared to RMB 202,000 in 2020, indicating a substantial increase in profitability[4] - The company recorded a net loss of RMB 799,000 for the period, a decline from a profit of RMB 1,609,000 in the previous year[4] - Other comprehensive income for the period was RMB 8,810,000, compared to a loss of RMB 1,038,000 in 2020, reflecting a positive shift in foreign exchange differences[5] - The company’s basic and diluted loss per share for the period was RMB 0.14, compared to earnings of RMB 0.21 per share in the same period of 2020[5] - The group reported a net loss before tax of RMB 799,000 for the six months ended June 30, 2021, compared to a profit of RMB 4,733,000 in the same period of 2020[22] - The company reported a loss attributable to shareholders of approximately RMB 1,202,000 for the six months ended June 30, 2021, compared to a profit of RMB 1,849,000 for the same period in 2020[40] Assets and Liabilities - Total assets as of June 30, 2021, amounted to RMB 694,034,000, a decrease from RMB 700,910,000 at the end of 2020[7] - The total liabilities for the group decreased to RMB 27,254,000 as of June 30, 2021, compared to RMB 30,600,000 as of December 31, 2020, reflecting improved financial stability[25] - Total liabilities of the reportable segments decreased to RMB 27,254 thousand as of June 30, 2021, down from RMB 30,600 thousand as of December 31, 2020, a reduction of about 7.8%[27] - The total biological assets as of June 30, 2021, were valued at RMB 23,784,000, down from RMB 26,298,000 as of December 31, 2020, indicating a decrease of approximately 9.6%[46] - The expected credit loss provision for accounts receivable was RMB 1,831,000 as of June 30, 2021, down from RMB 4,342,000 as of December 31, 2020[53] Cash Flow and Liquidity - The company's cash and cash equivalents increased significantly to RMB 72,835,000 from RMB 14,936,000 at the end of 2020, showing improved liquidity[7] - The net cash generated from operating activities for the six months ended June 30, 2021, was RMB 69,013,000, a significant increase from RMB 14,814,000 in the same period of 2020, representing a growth of approximately 366%[12] - The net increase in cash and cash equivalents for the six months ended June 30, 2021, was RMB 58,111,000, compared to RMB 14,445,000 in the same period of 2020, indicating strong cash flow management[12] - As of June 30, 2021, the group had cash and bank balances of approximately RMB 72.8 million, up from RMB 14.9 million at the end of 2020[73] Revenue Segmentation - The segment revenue from pig slaughtering and meat trading was RMB 31,237,000, while the pipeline system products segment generated RMB 20,143,000, contributing to the overall revenue growth[20] - Revenue from China reached RMB 31,237 thousand for the six months ended June 30, 2021, while revenue from Japan was RMB 20,143 thousand, up from RMB 1,858 thousand in the same period of 2020[29] - The group's pork business generated revenue of approximately RMB 31.2 million, a significant recovery from zero in 2020, as operations resumed in Q4 2020[70] - The pipeline business reported revenue of approximately RMB 20.1 million, an increase of 984.12% or RMB 18.3 million compared to the same period last year[70] Operational Highlights - The company has not reported any new product launches or significant market expansions during this period[2] - There were no acquisitions or mergers disclosed in the interim report, indicating a focus on internal growth strategies[2] - The company has not reported any significant new product launches or technological advancements during the reporting period[28] - There were no acquisitions or major market expansions mentioned in the report for the current period[28] Employee and Administrative Costs - Total employee costs increased to RMB 2,538,000 in the first half of 2021 from RMB 2,149,000 in the same period of 2020, reflecting a rise of approximately 18.1%[5] - The group's administrative expenses decreased to approximately RMB 7.6 million for the six months ended June 30, 2021, down from RMB 11.4 million in the same period last year[70] Corporate Governance - The company confirmed compliance with all corporate governance code provisions during the six months ending June 30, 2021[105] - The audit committee is responsible for overseeing the financial controls, risk management, and internal control systems of the group[106] - The audit committee consists of three independent non-executive directors, with Mr. Chan Yan Hang serving as the chairman[106] - The company has adopted a standard code for securities trading by directors, which all directors confirmed compliance with during the reporting period[103] Future Outlook and Strategies - The company continues to monitor the impact of the COVID-19 pandemic on its financial performance, with potential further changes in economic conditions[62] - The management believes that the development of African swine fever vaccines and the vaccination against COVID-19 will positively impact the business, with expectations of core business resuming soon[94] - The company will continue to seek various fundraising channels and potential opportunities to expand its pipeline business sustainably[94] - The group plans to finance its operations and investments primarily through operating income, internal resources, and bank financing[74]

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 challenges due to the African swine fever outbreak, which has severely impacted the pork market [6]. - A temporary business model has been adopted, involving the purchase of piglets for fattening until they reach approximately 110 kg for slaughter and sale as pork products [9]. - The company has also leased one of its farms to an independent third party to generate rental income while retaining another farm for business recovery plans [10]. - The company has established contracts with suppliers for piglets to ensure a steady supply for its operations once licenses are obtained [9]. - The company aims to restore pig slaughter operations to the original business model by regaining slaughter licenses and exploring potential acquisitions or collaborations with other slaughterhouses [32]. Financial Performance - The company recorded revenue of approximately RMB 29,700,000 for the year ended December 31, 2020, an increase of about 425% or RMB 24,000,000 compared to the previous year, primarily due to the recovery of the pork business [14]. - Revenue from the pipeline business was approximately RMB 11,500,000, representing an increase of about 102.6% compared to the previous year, indicating successful market entry and sales growth [14]. - The pork business generated revenue of approximately RMB 18,200,000 in Q4 2020, following its restart, with a gross loss of approximately RMB 4,400,000 due to low sales volume and fixed costs [14]. - The total comprehensive loss for the year was RMB 40,750,000, a reduction from RMB 195,842,000 in 2019, indicating an improvement in financial performance [185]. - The basic and diluted loss per share for the year was RMB 4.16, compared to RMB 21.74 in 2019, reflecting a decrease in losses per share [185]. Regulatory Compliance and Approvals - The company has been proactive in applying for operational approvals for its farms and slaughterhouses to ensure compliance with government regulations [9]. - The company has applied for a designated slaughtering license, with expectations to receive approval by the end of 2021, subject to regulatory conditions [10]. - The company is closely monitoring developments regarding African swine fever vaccines and related licensing processes [32]. Cash Flow and Liquidity - As of December 31, 2020, the company maintained cash and bank balances of approximately RMB 14,900,000, up from RMB 3,500,000 in the previous year [18]. - The company’s cash and cash equivalents increased to RMB 14,936 thousand in 2020 from RMB 3,523 thousand in 2019, representing a growth of approximately 323.5% [187]. - Cash generated from operating activities was RMB 1,651 thousand in 2020, a recovery from a cash outflow of RMB 6,374 thousand in 2019 [197]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has complied with the code provisions, except for the absence of two independent non-executive directors at the annual general meeting [93][94]. - The board consists of 7 members, including 3 executive directors and 4 independent non-executive directors, meeting the requirement of at least one-third being independent [95]. - The company has maintained a high level of corporate governance standards, continuously reviewing and improving its practices [97]. Risk Management - The Board is responsible for the overall effectiveness of the risk management and internal control systems, which are reviewed annually [136]. - The company has established a risk management manual to clarify the roles of management, the Board, and the Audit Committee in risk management [140]. - The Audit Committee reviewed the effectiveness of the risk management and internal control systems, finding no significant issues [138]. Supplier and Customer Relationships - The largest customer accounted for 30% of total revenue, while the top five customers collectively contributed 67% [62]. - The largest supplier represented 34% of total purchases, with the top five suppliers accounting for 100% of total purchases [62]. - The company has established long-term relationships with suppliers, ensuring compliance with quality and ethical standards [67]. Environmental Sustainability - The company is committed to environmental sustainability, having installed waste treatment facilities at its farms and production bases [64]. Dividend Policy - The company does not plan to declare a final dividend for the year ended December 31, 2020, consistent with the previous year [27]. - The company continues to review its dividend policy without guaranteeing any specific amount for distribution at any given time [157].

Financial Performance - The company reported revenue of RMB 1,858,000 for the six months ended June 30, 2020, compared to no revenue in the same period of 2019[6]. - Gross profit for the period was RMB 202,000, resulting in a gross margin of approximately 10.9%[6]. - Other income increased to RMB 16,576,000 from RMB 13,516,000 year-over-year, representing a growth of 22.8%[6]. - The company achieved a profit before tax of RMB 4,733,000, a significant improvement from a loss of RMB 5,735,000 in the previous year[6]. - Net profit for the period was RMB 1,609,000, compared to a net loss of RMB 5,735,000 in the same period of 2019[6]. - Total comprehensive income for the period amounted to RMB 571,000, recovering from a loss of RMB 3,999,000 in the previous year[8]. - Basic and diluted earnings per share were RMB 0.21, compared to a loss per share of RMB 0.65 in 2019[8]. - The total loss before tax for the six months ended June 30, 2020, was RMB (3,918,000), a significant improvement compared to a loss of RMB (9,914,000) for the same period in 2019[24]. - The company recognized a net loss of RMB (2,724,000) from fair value changes of financial assets measured at fair value through profit or loss for the six months ended June 30, 2020[24]. - The company’s total unallocated corporate income was RMB 13,821,000, while unallocated corporate expenses were RMB (4,539,000) for the six months ended June 30, 2020[24]. - The company’s income tax expense for the six months ended June 30, 2020, was RMB 3,124,000, with RMB 3,120,000 attributed to China and RMB 4,000 to Japan[35]. - For the six months ended June 30, 2020, the company reported a profit attributable to owners of approximately RMB 1,849,000, compared to a loss of RMB 5,735,000 for the same period in 2019[43]. - The pre-tax profit for the period was RMB 4,733,000, a significant improvement from a loss of RMB 5,735,000 in the previous year[41]. - Total income tax expense for the period was RMB 3,124,000, with no tax expense reported in the same period last year[41]. Assets and Liabilities - The company's total assets as of June 30, 2020, were RMB 587,350,000, slightly down from RMB 592,613,000 at the end of 2019[10]. - Current liabilities increased to RMB 93,888,000 from RMB 52,771,000 at the end of 2019, indicating a rise in short-term obligations[10]. - The company's equity attributable to owners was RMB 636,287,000, a slight increase from RMB 635,476,000 at the end of 2019[11]. - Total assets of the reportable segments increased to RMB 374,706,000 as of June 30, 2020, compared to RMB 373,952,000 as of December 31, 2019, reflecting a growth of 0.2%[29]. - Total liabilities of the reportable segments rose to RMB 39,882,000 as of June 30, 2020, up from RMB 31,043,000 as of December 31, 2019, indicating an increase of 28.5%[29]. - The company’s total liabilities included notes payable of RMB 9,068,000 as of June 30, 2020, compared to RMB 8,886,000 as of December 31, 2019[55]. - The company’s total liabilities increased significantly, with unallocated and other company liabilities rising to RMB 94,968,000 as of June 30, 2020, compared to RMB 62,984,000 as of December 31, 2019, an increase of 50.8%[29]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2020, was RMB 14,814,000, an increase of 44% compared to RMB 10,270,000 for the same period in 2019[15]. - The net cash used in financing activities was RMB (371,000) for the six months ended June 30, 2020, compared to RMB 1,231,000 for the same period in 2019, indicating a significant decrease in financing inflow[15]. - The total cash and cash equivalents at the end of the period was RMB 17,870,000, down from RMB 21,418,000 at the end of June 30, 2019, reflecting a decrease of 16%[15]. - As of June 30, 2020, the group had cash and bank balances of approximately RMB 17,900,000, an increase from RMB 3,500,000 as of December 31, 2019[73]. - The group's net current assets were approximately RMB 53,200,000 as of June 30, 2020, down from RMB 56,500,000 as of December 31, 2019[73]. Operational Highlights - The company reported a total revenue of RMB 1,858,000 from pipeline system products for the six months ended June 30, 2020, with a segment loss of RMB (795,000)[24]. - Revenue from pipeline system product sales was RMB 1,858,000 for the six months ended June 30, 2020, compared to no revenue in the same period of 2019[33]. - The company recognized government subsidies of approximately RMB 183,000 related to COVID-19 during the six months ended June 30, 2020[34]. - The company has taken steps to mitigate risks associated with the temporary decline in its pork business by leasing out some slaughterhouses and breeding farms for a monthly rent of RMB 760,000[65]. - The company is planning to cautiously resume pig breeding while considering various factors, including the risk of infection and price fluctuations[66]. - The company’s sales and distribution expenses were approximately RMB 13,000, consistent with the suspension of pork production and sales[70]. - The company continues to assess the financial performance of its cash-generating units in light of the ongoing impact of African swine fever on its operations[54]. Corporate Governance - The audit committee is responsible for overseeing the financial controls, risk management, and internal control systems of the group[107]. - The company has adopted the corporate governance code as set out in Appendix 14 of the Listing Rules[105]. - All directors confirmed compliance with the standards set out in the code during the six months ending June 30, 2020[104]. - The company has maintained compliance with all code provisions during the six months ending June 30, 2020[106]. - Mr. Huang resigned as an independent non-executive director of Depu Technology Development Co., Ltd. effective March 2, 2020[109]. - Mr. Huang also resigned from his position as an independent non-executive director of Qidi International Co., Ltd. effective July 17, 2020[109]. - Mr. Huang was appointed as an executive director of Nuofa Group Holdings Limited on July 15, 2020[109]. Employee and Shareholder Information - The total employee costs amounted to RMB 2,149,000, slightly down from RMB 2,220,000 in the previous year[41]. - The company employed 40 staff as of June 30, 2020, a decrease from 42 staff as of December 31, 2019[83]. - The company has not recognized any potential dilution of ordinary shares, resulting in basic and diluted earnings per share being the same[44]. - As of June 30, 2020, the total number of issued ordinary shares of the company was 880,838,000[96]. - Executive director Chen Shizheng holds 8,684,000 shares, representing approximately 0.99% of the company's total shares[95]. - The company granted a total of 40,000,000 share options on April 10, 2017, with an exercise price of HKD 0.51 per share[99]. - On July 17, 2018, the company granted an additional 45,788,000 share options, with an exercise price of HKD 0.207 per share[99]. - As of June 30, 2020, a total of 73,420,000 share options were granted, with no options exercised, cancelled, or lapsed during the six months ending on that date[101]. - The board resolved not to declare any interim dividend for the six months ended June 30, 2020, consistent with the previous year[82].

African Swine Fever Impact - The company faced unprecedented challenges due to the African swine fever outbreak in China, which led to the suspension of operations in the local pork market[11]. - In 2019, there were 63 reported cases of African swine fever and 390,000 pigs were slaughtered across the country, significantly impacting the pork industry[12]. - The company's pork business did not generate any revenue for the year ended December 31, 2019, due to the ongoing effects of the African swine fever outbreak[12]. - The company is closely monitoring the situation regarding African swine fever and domestic pig price trends, with expectations of continued high prices for piglets in 2020[15]. - The risk of resuming pig breeding remains high, as new piglets may become infected again, leading to significant losses[15]. - The COVID-19 pandemic has further delayed the recovery of the company's pork business due to public health measures and transportation restrictions in various provinces[15]. - The company's revenue for the year ended December 31, 2019, was approximately RMB 5,700,000, a decline of about 98.5% compared to the previous year due to the suspension of the pork business caused by African swine fever[23]. Financial Performance - The company reported a loss attributable to owners of approximately RMB 191,600,000 in 2019, a reduction from RMB 343,000,000 in 2018[26]. - The company reported a loss of approximately RMB 191,569,000 for the year ended December 31, 2019[170]. - The net loss for the year was RMB 191,569,000, an improvement from a net loss of RMB 342,965,000 in 2018, indicating a reduction in losses[189]. - Total comprehensive loss for 2019 was RMB 195,842,000, compared to RMB 339,496,000 in 2018, showing a decrease in overall losses[192]. - The company’s retained earnings as of December 31, 2019, were RMB 109,674,000, down from RMB 301,190,000 in 2018, a decrease of approximately 63.6%[199]. - Total equity decreased from RMB 834,732,000 in 2018 to RMB 638,890,000 in 2019, representing a decline of approximately 23.5%[197]. Revenue and Business Operations - The new business segment generated revenue of approximately RMB 5,700,000 in 2019, with an average gross margin of about 1.5%[23]. - The company anticipates that the pork business will resume operations in the second half of 2020 or later, with new business expected to grow steadily and generate new revenue sources[41]. - The company took measures to rent out part of its slaughterhouses and farms to an independent third party for five years at a monthly rent of RMB 760,000, ensuring a stable income source[18]. Cost Management and Expenses - Administrative expenses decreased to approximately RMB 22,000,000 in 2019 from RMB 58,300,000 in 2018, aligning with the suspension of the pork business[25]. - The company's financial expenses were approximately RMB 1,300,000 in 2019, down from RMB 8,300,000 in 2018[26]. Corporate Governance - The board consists of five members, including two executive directors and three independent non-executive directors, meeting the requirement of at least one-third being independent[104]. - The company has adopted the corporate governance code as per the listing rules and has complied with the code provisions, except for specific attendance issues at the annual general meeting[103]. - The independent non-executive directors have confirmed their independence and do not hold any shares in the company[109]. - The board confirmed its overall responsibility for the effectiveness of the group's risk management and internal control systems, which are reviewed annually[144]. Shareholder Communication - The company maintains open communication with shareholders and regularly discloses information through financial reports and shareholder meetings[154]. - 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[158]. - Shareholders can submit agenda items for the general meeting with a written notice at least 21 days in advance for ordinary resolutions[162]. Asset Management - The total value of property, plant, and equipment as of December 31, 2019, was approximately RMB 158,161,000, a decrease from approximately RMB 261,733,000 in 2018[176]. - The impairment loss for property, plant, and equipment was approximately RMB 94,674,000, down from approximately RMB 207,640,000 in 2018[176]. - The total accounts receivable amounted to approximately RMB 274,029,000, an increase from approximately RMB 260,000,000 in 2018[172]. Employee Management - The company employed 42 staff as of December 31, 2019, a decrease from 245 in 2018[37]. - The management emphasizes the importance of employee development and aims to provide clear career paths and skill enhancement opportunities[74]. 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[146]. - The audit committee regularly reviews the group's performance and risk management systems, ensuring effective measures are in place to protect key assets[144].

Financial Performance - For the six months ended June 30, 2019, the company reported total revenue of RMB 0 thousand, a significant decrease from RMB 248,721 thousand in the same period of 2018[3]. - The cost of sales for the same period was RMB (254,153) thousand, resulting in a gross loss of RMB (5,432) thousand[3]. - Other income increased to RMB 13,516 thousand from RMB 1,601 thousand year-on-year[3]. - The company recorded a loss before tax of RMB (5,735) thousand, compared to a loss of RMB (22,050) thousand in the previous year, indicating an improvement[3]. - The total comprehensive loss for the period was RMB (3,999) thousand, a reduction from RMB (23,758) thousand in the prior year[5]. - Basic and diluted loss per share was RMB (0.65), an improvement from RMB (2.54) in the same period of 2018[5]. - The company incurred a loss of RMB 5,735 thousand for the six months ended June 30, 2019, compared to a loss of RMB 22,050 thousand in the previous period[10]. - The group reported a loss before tax of RMB (5,735,000) for the six months ended June 30, 2019, compared to a loss of RMB (22,050,000) for the same period in 2018, showing an improvement in performance[40]. - The company reported a loss attributable to owners of approximately RMB 5,700,000, significantly reduced from a loss of RMB 22,100,000 in the previous year[71]. Assets and Liabilities - Non-current assets decreased to RMB 766,431 thousand from RMB 792,724 thousand as of December 31, 2018[7]. - Current assets increased to RMB 126,153 thousand from RMB 101,936 thousand as of December 31, 2018[7]. - Total liabilities decreased to RMB 52,558 thousand from RMB 59,626 thousand as of December 31, 2018[8]. - The company's equity attributable to owners decreased slightly to RMB 827,329 thousand from RMB 831,265 thousand as of December 31, 2018[8]. - The company's total assets as of June 30, 2019, were RMB 830,796,000, slightly down from RMB 834,732,000 as of December 31, 2018[28]. - The group’s total liabilities as of June 30, 2019, were RMB 40,000 for the assets classified as held for sale[54]. Cash Flow - The company reported a net cash inflow from operating activities of RMB 10,270 thousand for the six months ended June 30, 2019, compared to a net cash outflow of RMB 133,177 thousand in the same period of 2018[12]. - The company had cash and cash equivalents of RMB 21,418 thousand at the end of the reporting period, an increase from RMB 8,168 thousand at the beginning of the period[12]. - The company’s financing activities generated a net cash inflow of RMB 1,231 thousand, significantly lower than the RMB 84,310 thousand generated in the same period of 2018[12]. - As of June 30, 2019, the company had cash and bank balances of approximately RMB 21,400,000, an increase from RMB 8,200,000 as of December 31, 2018[72]. Revenue Sources - The group's revenue from customer contracts for the six months ended June 30, 2019, was RMB 0, compared to RMB 248,721,000 for the same period in 2018, indicating a significant decline[34]. - Revenue from external customers in Hunan Province was RMB 248,721,000 for the six months ended June 30, 2019, compared to RMB 199,236,000 in the same period of 2018[29]. - The company did not record any revenue from its core business during the review period, compared to RMB 248,700,000 in the same period last year, but generated approximately RMB 12,016,000 from its newly launched lending business[70]. Employee and Operational Costs - The total employee costs for the six months ended June 30, 2019, were RMB 2,220,000, significantly lower than RMB 11,354,000 in the same period of 2018[40]. - The company's administrative expenses increased to approximately RMB 15,700,000, up from RMB 11,800,000 in the previous year, primarily due to the lack of operational income during the review period[71]. Corporate Governance - The company has adopted a standard code for securities trading by directors, confirming compliance by all directors during the six months ended June 30, 2019[101]. - The company has implemented corporate governance practices in accordance with the listing rules, with ongoing reviews to improve standards[102]. - The audit committee is composed of three independent non-executive directors, with a focus on financial controls and risk management[108]. - Changes in the board included the resignation of independent non-executive director Deng Pingping and the appointment of Chen Yanxing as the new audit committee chairman[109]. Future Plans and Investments - The management is in the planning stage to establish its own testing laboratories at slaughterhouses in Changde and two farms in Taoyuan County, expected to be operational by the end of 2019[91]. - The company is actively exploring other potential investment opportunities to enhance shareholder value and diversify business risks[91]. - The company plans to utilize its operating income, internal resources, and bank financing for its operational and investment activities[75]. Shareholder Information - The total number of issued shares as of June 30, 2019, was 880,838,000[84]. - The average number of ordinary shares issued during the reporting period was 880,838,000, compared to 868,470,000 in the same period of 2018[42]. - The company did not declare or pay any interim dividends for the six months ended June 30, 2019, consistent with the previous year[44]. - The company has no immediate funding needs and has not established any specific plans to raise funds, but will consider various fundraising options as opportunities arise[69].

Market Impact and Operations - The outbreak of African swine fever in China has severely impacted the pork market, with approximately 40,000 pigs culled as of late 2018, affecting supply chains and prices[6]. - The company faced quarantine orders leading to a 42-day shutdown of its slaughterhouse in Changde, which significantly disrupted operations[7]. - In Q1 2019, the pig farming industry showed no signs of improvement, with pig prices reaching a 14-month high due to decreased supply from the culling of infected pigs[10]. - The company plans to acquire more quality pigs to maintain stable operations and will enhance testing of externally sourced pigs to ensure product quality[11]. - The company will implement more frequent health monitoring of its own pigs to prevent cross-infection and ensure product safety[11]. - The company expects it will take approximately 9 months to 1 year to fully resume operations affected by the African swine fever outbreak[52]. Financial Performance - The company's revenue for the year ended December 31, 2018, was approximately RMB 382 million, a decrease of about 43.3% compared to the same period in 2017[19]. - The average gross profit margin fell from approximately 4.2% in 2017 to an average gross loss margin of about 1.9% in 2018[33]. - Administrative expenses increased to approximately RMB 59 million in 2018 from about RMB 35 million in 2017, mainly due to costs associated with the African swine fever outbreak[33]. - The company reported a loss attributable to owners of approximately RMB 343 million in 2018, compared to a loss of about RMB 300,000 in 2017[34]. - The group recorded an impairment provision of approximately RMB 208 million for property, plant, and equipment due to the instability caused by the African swine fever outbreak[16]. Funding and Capital Management - In 2018, the company attempted to raise funds by issuing 173,692,000 shares at HKD 0.159 per share to improve its financial situation, but the agreement was ultimately terminated due to market volatility[8]. - The group plans to utilize approximately HKD 87.82 million (about 62.5% of the net proceeds from the rights issue) to repay outstanding loans[30]. - The net proceeds from the rights issue amounted to approximately HKD 140.53 million, with about HKD 52.71 million reserved for general working capital and potential future business opportunities[30]. - The company agreed to issue 289,490,000 rights shares at a subscription price of HKD 0.50 per share to raise approximately HKD 144.75 million[30]. Corporate Governance - The company aims to maintain high corporate governance standards to achieve sustainable long-term development and create value for shareholders[11]. - The company has adopted the corporate governance code as per the listing rules and will continue to review and enhance its governance standards[118]. - The board is responsible for determining overall strategy, monitoring operational and financial performance, and managing risks associated with achieving the group's strategic objectives[123]. - The board currently consists of seven directors, including four executive directors and three independent non-executive directors, meeting the requirement of at least three independent non-executive directors[122]. - The company has established a code of conduct for securities trading by directors, confirming compliance with the standard code as of December 31, 2018[140]. Risk Management - The company has established a risk management framework to identify and assess potential risks[171]. - The board is responsible for the overall effectiveness of the risk management and internal control systems, with annual reviews conducted[159]. - The company confirmed that the risk management and internal control systems are effective and sufficient as of December 31, 2018[161]. - The Audit Committee reviewed the effectiveness of the risk management and internal control systems, finding no significant issues during the review period[161]. Shareholder Relations - The company maintains open communication with shareholders and investors through financial reports and annual general meetings[173]. - Shareholders holding at least 10% of the paid-up capital have the right to request the board to convene a special general meeting[174]. - The board regularly reviews its policies to ensure effective communication with shareholders[175]. Asset Management - As of December 31, 2018, the total receivables amounted to RMB 260,000,000, with an expected credit loss provision of RMB 265,000[191]. - The total value of property, plant, and equipment as of December 31, 2018, was approximately RMB 261,733,000[195]. - The group recognized an impairment loss of approximately RMB 207,640,000 for property, plant, and equipment due to indications of impairment[195]. Dividend Policy - The company will continue to review its dividend policy periodically, with no guarantee of specific dividend amounts in any given period[185]. - The board will consider factors such as the group's profitability and financial condition when deciding on dividend payments[184]. - The company has adopted a dividend policy effective December 31, 2018, which outlines the factors considered for dividend distribution[183].