Financial Performance - For the year ended December 31, 2021, the company reported revenue of approximately RMB 863.6 million, an increase of 31.8% compared to RMB 655.3 million in 2020[23] - Gross profit for the same period was RMB 150.6 million, reflecting a growth of 40.1% from RMB 107.5 million in the previous year[23] - Net profit surged to RMB 86.1 million, marking a significant increase of 146.7% from RMB 34.9 million in 2020[23] - Basic earnings per share rose to RMB 0.13, up 160.0% from RMB 0.05 in the prior year[23] - The company's revenue for the reporting year was RMB 863.6 million, an increase of 31.8% from RMB 655.3 million in the previous year[45] - The profit for the reporting year rose to RMB 86.1 million, a significant increase of 146.7% from RMB 34.9 million in the previous year[63] - The gross profit increased to RMB 150.6 million, up from RMB 107.5 million, with a gross margin of 17.44%, compared to 16.4% in the previous year[52] - Other income and gains rose to RMB 20.1 million, a 151.3% increase from RMB 7.99 million in the previous year, primarily due to increased investment income[54] Operational Developments - The company expanded its customer base by acquiring six new agency rights in 2021, focusing on the food and beverage sectors[35] - Strategic partnerships were established, including a memorandum of understanding with Mars China in November 2021 for collaborative growth[39] - The company has strengthened its market presence in China by establishing new subsidiaries in cities such as Xiamen, Qingdao, and Wuhan[29] - Investment in joint ventures has further supported the company's long-term growth and sustainable profitability[28] - The company aims to maintain a focus on quality and efficiency to deliver satisfactory performance and sustainable returns to shareholders[41] - Future development plans include increasing product sales through existing and new agency rights, focusing on the food and nutrition sectors, and seeking partnerships with specialty brands[97] - The company plans to expand its self-developed formula products and potential food ingredient brands and combinations[97] Financial Position - Sales costs for the reporting year were RMB 713.0 million, reflecting a 30.2% increase from the previous year's RMB 548.5 million[49] - Administrative expenses increased by approximately 9.5% to RMB 37.0 million, up from RMB 33.8 million in the previous year[57] - Financing costs rose to RMB 1.1 million from RMB 0.7 million, mainly due to an increase in short-term bank loans[60] - The company's cash and cash equivalents at year-end were RMB 134.9 million, down from RMB 223.4 million in the previous year[68] - The net cash used in operating activities for the reporting year was approximately RMB 17.2 million, primarily from a pre-tax profit of about RMB 108.2 million, after income tax payments of approximately RMB 19.8 million[69] - The net cash used in investing activities amounted to RMB 77.6 million, mainly due to an investment of approximately RMB 78.8 million in an associate company[70] - The net cash generated from financing activities was RMB 7.3 million, primarily attributed to new bank loans of approximately RMB 20.0 million[71] - Current assets totaled RMB 429.5 million as of December 31, 2021, compared to RMB 411.8 million in 2020, with a notable increase in trade receivables and prepayments[74] - The debt-to-asset ratio increased to 22.5% as of December 31, 2021, compared to 20.0% in the previous year[75] Investments and Acquisitions - The company acquired approximately 11.72% equity in Tianye Innovation for RMB 78.8 million, completed on February 4, 2021[85] - The investment in Tianye as of December 31, 2021, was RMB 97.2 million, representing about 18.2% of the company's total assets[88] - Tianye recorded revenue of RMB 218.9 million and net profit of RMB 38.7 million for the six months ending June 30, 2021[88] Corporate Governance - The board proposed a final dividend of HKD 0.0225 per share, totaling approximately HKD 15.3 million based on 680 million shares issued, an increase from HKD 0.015 per share in 2020[95] - The company has adopted a dividend policy that allows for annual dividends and special dividends, subject to shareholder approval and financial performance considerations[130] - The board of directors has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific responsibilities[131] - The Audit Committee consists of three independent non-executive directors, including Mr. Chan Wai-seng (Chairman), Mr. Chan Ka-kit, and Mr. Meng Yuecheng[136] - The company encourages all directors to participate in continuous professional development activities to enhance their knowledge and skills[124] - The board has implemented a diversity policy, considering various factors such as gender, age, cultural background, and professional experience in director appointments[125] - The company has a policy for the appointment and reappointment of directors, ensuring compliance with organizational bylaws[123] - The company confirmed its responsibility for preparing the consolidated financial statements in accordance with legal requirements and applicable accounting standards[157] Risk Management - The board confirmed that the risk management and internal control systems were adequate and effective as of the reporting year[155] - The internal control consultant is planning a comprehensive review of the group over three years, focusing on sales management, procurement management, and inventory management[152] - The company emphasizes that the risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against significant misstatements or losses[155] - The group faces various risks, including reliance on key suppliers, which may significantly impact business performance due to supply shortages or delays[200] - Seasonal demand for the group's products is typically higher in the three to four months leading up to the Lunar New Year, potentially causing fluctuations in operational performance[200] - The food ingredients and additives business may be affected by increasingly stringent licensing regulations, environmental laws, and health standards, leading to increased operational costs[200] Shareholder Engagement - The company emphasizes the importance of investor relations, particularly in fair disclosure and comprehensive reporting of the company's performance and activities[163] - The company encourages shareholders to attend annual and special general meetings, with the next annual general meeting scheduled for May 18, 2022[165] - The company has a structured process for shareholders to submit inquiries and proposals for special meetings[166] Management Team - The board consists of experienced members, including the founder and executive director with over 28 years of experience in managing food ingredients and additives[174] - The executive director and CEO, who is also the founder's daughter, has been with the company since 2017 and holds a degree from the University of Toronto[175] - The company has a strong management team with over 30 years of experience in financial management, corporate finance, and strategic development[182] - The Chief Financial Officer, Mr. Wang Jinguo, has been with the company since March 2014 and is responsible for financial strategy and management[190] - The management team includes independent non-executive directors who provide oversight and independent opinions on the group's operations[183] Future Outlook - The company anticipates continued strong revenue growth despite global economic uncertainties, aiming to create value for shareholders[96] - The company aims to leverage its R&D capabilities to drive growth and market expansion in the food industry[196] - The business review and future development discussions are detailed in the annual report, specifically pages 4 to 14[198]

Financial Performance - The company recorded revenue of RMB 369.5 million for the six months ended June 30, 2021, representing a 33.1% increase from RMB 277.7 million in the same period last year[14]. - Profit for the period increased by RMB 34.8 million or 419.3% to RMB 43.1 million, compared to RMB 8.3 million in the previous year[14]. - Basic earnings per share rose to RMB 0.06, up from RMB 0.01 in the previous year, an increase of RMB 0.05[14]. - Revenue for the first half of 2021 reached RMB 369.5 million, an increase of 33.0% compared to RMB 277.7 million in the same period of 2020[28]. - Gross profit rose by RMB 29.9 million to RMB 69.5 million, with a gross margin increase to 18.8% from 14.3% in the previous year[30]. - Profit before tax from continuing operations increased to RMB 55,764,000, a significant rise from RMB 11,819,000 in the previous year, marking a 371% increase[77]. - Net profit for the period was RMB 43,077,000, compared to RMB 8,292,000 in the prior year, reflecting a 419% growth[77]. - Total comprehensive income for the period was RMB 42,911,000, compared to RMB 8,713,000 in the previous year, indicating a 392% increase[80]. Business Development - The growth was primarily driven by the recovery of the Chinese economy, the company's comprehensive one-stop food raw material solutions, and stable development across all major business segments[15]. - The company established six new subsidiaries in China to enhance market penetration and expand product sales and distribution coverage[16]. - Four new agency rights were obtained in 2021, focusing on the food service and nutrition sectors, including exclusive rights for various food additive products from South Korea's Samyang and Cargill's food raw materials[19]. - The company plans to continue increasing product sales through existing and new agency rights, targeting unique brand collaborations[23]. - Future development plans include enhancing proprietary brand strength through self-developed formulas and potential food raw materials[23]. - The company aims to explore strategic investment opportunities and seek acquisitions of quality target businesses and assets to create synergies[24]. Financial Position - The company's cash and cash equivalents decreased to RMB 143.4 million from RMB 223.4 million, primarily due to investments in joint ventures[48]. - The debt-to-asset ratio increased to 23.1% from 20.0% as of December 31, 2020, reflecting the increase in borrowings[48]. - Non-current assets totaled RMB 103,067,000 as of June 30, 2021, compared to RMB 9,762,000 at the end of 2020[83]. - Current assets decreased to RMB 380,179,000 from RMB 411,811,000 at the end of 2020, a decline of 8%[83]. - Total liabilities increased to RMB 107,653,000 from RMB 78,546,000 at the end of 2020, representing a 37% increase[83]. - The company's equity attributable to owners of the parent was RMB 371,705,000, up from RMB 337,281,000 at the end of 2020, reflecting a growth of 10%[86]. Cash Flow and Investments - The company experienced a net cash outflow from operating activities of RMB 19,704,000 for the first half of 2021, compared to a net inflow of RMB 20,066,000 in the same period of 2020[95]. - Cash and cash equivalents at the end of June 30, 2021, were RMB 143,381,000, down from RMB 198,539,000 at the end of June 30, 2020, reflecting a decrease of approximately 28%[98]. - The company incurred a cash outflow of RMB 78,239,000 from investing activities in the first half of 2021, compared to a cash inflow of RMB 1,513,000 in the same period of 2020[98]. - New bank loans amounted to RMB 20,000,000 during the first half of 2021, contributing to a net cash inflow from financing activities of RMB 18,122,000[98]. Corporate Governance - The board does not recommend any dividend payment for the review period, considering the overall operating performance and financial condition[73]. - The company has adopted a share option scheme to incentivize and reward eligible participants for their contributions[63]. - The audit committee has reviewed the interim performance and confirmed compliance with applicable accounting standards and listing rules[75]. - The company maintains high standards of corporate governance to protect shareholder interests and enhance accountability[69]. Operational Challenges - Despite challenges from COVID-19, the company remains confident in achieving strong revenue growth and creating value for shareholders[22]. - The company reported a trade receivables impairment of RMB 422 thousand as of June 30, 2021, significantly reduced from RMB 1,539 thousand as of December 31, 2020, indicating improved credit control[148]. - The company maintained a strict control over overdue balances in trade receivables to minimize credit risk, with management regularly reviewing overdue amounts[148].

Financial Performance - The company reported revenue of RMB 655.3 million for the year ended December 31, 2020, an increase of 13.0% compared to RMB 579.9 million in 2019[10]. - Gross profit for the year was RMB 107.5 million, reflecting a gross margin increase of 7.3% from RMB 100.2 million in the previous year[10]. - Net profit reached RMB 34.9 million, representing a growth of 16.3% from RMB 30.0 million in 2019[10]. - Basic earnings per share increased to RMB 0.05, up 25.0% from RMB 0.04 in the prior year[10]. - The company's revenue for the reporting year was RMB 655.3 million, an increase of 13.0% compared to RMB 579.9 million in the previous year[29]. - The profit for the reporting year rose to RMB 34.9 million, representing a growth of 16.3% from RMB 30 million in the previous year[45]. - Other income increased by 29.0% to RMB 8.0 million, mainly due to government subsidies and foreign exchange income[35]. - Sales costs increased by approximately 14.2% to RMB 547.8 million, primarily due to increased sales volume[31]. - The gross profit increased by RMB 7.3 million to RMB 107.5 million, while the gross profit margin decreased to 16.4% from 17.3% in the previous year[32]. Business Expansion and Strategy - The company established six new subsidiaries in cities including Xiamen, Qingdao, Xi'an, Chengdu, Wuhan, and Zhengzhou to enhance its market presence in China[15]. - New agency rights were obtained for various food ingredients and additives from Thailand's Thai Hua, expanding the product portfolio[17]. - The company acquired approximately 11.72% stake in Tianye Innovation Holdings Limited and secured exclusive agency rights for fruit puree products under the "Guo Yan Guo Yu" brand[17]. - The establishment of inAgri and inDairy brands aims to directly source agricultural food materials and develop dairy-based formulations for the food service industry[17]. - The company is actively seeking investment opportunities and business expansion in Southeast Asia, with a sales office established in Ho Chi Minh City, Vietnam[18]. - The company plans to establish an Asia-Pacific Innovation Center in 2023, with a focus on food solutions, production, logistics, and sales[22]. - The company aims to enhance its R&D capabilities and strengthen its own brand through self-developed formulas and potential food ingredients[22]. - The company is actively seeking strategic investment opportunities and acquisitions of quality target businesses and assets to create synergies[82]. Cash Flow and Assets - The net cash flow from operating activities for the reporting year was approximately RMB 47.3 million, primarily driven by a pre-tax profit of about RMB 49.3 million[52]. - The net cash flow from investing activities was RMB 3.2 million, mainly due to interest received from bank cash amounting to RMB 3.4 million[53]. - The net cash flow from financing activities was RMB 3.3 million, primarily due to lease payment principal[54]. - As of December 31, 2020, the total current assets amounted to RMB 411.8 million, an increase from RMB 374.2 million in 2019[58]. - The net current asset value increased from RMB 299.3 million on December 31, 2019, to RMB 333.3 million on December 31, 2020, mainly due to an increase in cash and cash equivalents of approximately RMB 45.4 million[58]. - The cash and bank balance as of December 31, 2020, was RMB 223.4 million, an increase of RMB 79.3 million compared to RMB 144.1 million on December 31, 2019[59]. Corporate Governance - The board of directors has reviewed and confirmed compliance with the corporate governance code as per the listing rules during the reporting year[84]. - The board consists of six directors, including three independent non-executive directors, ensuring a balanced composition with diverse expertise[90]. - The board has established three committees: audit, remuneration, and nomination, each with specific responsibilities[110]. - The audit committee reviewed the audited financial statements for the year ending December 31, 2020, and discussed significant accounting policies and practices with management and external auditors[114]. - The board confirmed its responsibility for maintaining a robust and effective internal control and risk management system to safeguard shareholder investments and the company's assets[127]. - The company adopted a dividend policy allowing for annual dividends based on profitability and stable operating conditions, with special dividends possible[109]. Employee and Compensation - The company had 167 employees as of December 31, 2020, with compensation determined based on market terms and individual performance[76]. - The salary range for senior management (excluding directors) during the reporting year included 1 individual earning between HKD 500,001 and HKD 1,000,000, 4 individuals earning between HKD 1,000,001 and HKD 1,500,000, and 1 individual earning between HKD 2,000,001 and HKD 3,000,000[120]. - The group has 167 employees as of December 31, 2020, focusing on competitive compensation and performance evaluation to motivate and develop staff[178]. Risk Management and Compliance - The group faces various risks, including reliance on key suppliers, potential food safety issues, and seasonal demand fluctuations, which may impact operational performance[171]. - The company emphasizes that its risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against material misstatements or losses[129]. - The group has implemented internal policies to ensure compliance with social security and housing fund regulations in China since November 2017[173]. - The group has adopted internal policies to prevent non-compliance with loan regulations in China, enhancing awareness among directors and financial staff[174]. - The group has not faced any significant non-compliance issues related to environmental laws and regulations as of the report date[181]. Dividends - The company plans to distribute a final dividend of HKD 0.015 per ordinary share for the year ended December 31, 2020, totaling HKD 10.2 million (approximately RMB 8.6 million) based on 680,000,000 shares issued[78]. - The company reported a final dividend of HKD 0.015 per ordinary share, totaling HKD 10.2 million (approximately RMB 8.6 million) for the year ended December 31, 2020, compared to zero in 2019[168]. - The company's final dividend payment is subject to approval at the upcoming annual general meeting[78]. Future Outlook - Future outlook remains positive with expectations of continued strong revenue growth despite global economic instability due to COVID-19[21]. - The company remains confident in achieving strong revenue growth despite global economic instability caused by COVID-19[81]. - The company provided guidance for the next fiscal year, projecting revenue growth of A% and an expected EBITDA margin of B%[138].

Shineroad International Holdings Limited 欣融國際控股有限公司 Shineroad International Holdings Limited 欣融國際控股有限公司 (incorporated in the Cayman Islands with limited liability) Stock code : 1587 INTERIM REPORT 2020 Interim Report 2020 中期報告 Shineroad International Holdings Limited 欣融國際控股有限公司 (於開曼群島註冊成立之有限公司) 股份代號 : 1587 中期報告 2020 目錄 簡明綜合中期損益及其他全面收益表 15 簡明綜合中期財務狀況表 17 簡明綜合中期權益變動表 19 簡明綜合中期現金流量表 21 公司資料 2 管理層討論及分析 3 其他資料 11 簡明綜合中期財務報表附註 23 公司資料 執行董事 黃海曉先生（董事會主席） 黃欣融女士（行政總裁） 戴毅輝先生 獨立非執行董事 陳偉成先生 陳家傑先生 孟岳成先生 公司秘書 謝延豐先生 授權代表 黃 ...

Financial Performance - For the year ended December 31, 2019, the group recorded revenue of approximately RMB 579.9 million, an increase of about 10.3% compared to RMB 525.6 million in the previous year[11]. - The group's profit for the year was approximately RMB 30 million, representing an increase of about 6.8% from RMB 28.1 million in the previous year[11]. - Basic earnings per share decreased to RMB 0.04, down RMB 0.01 from RMB 0.05 in the previous year[11]. - The company's revenue for the fiscal year 2019 was RMB 579.9 million, an increase of 10.3% compared to RMB 525.6 million in fiscal year 2018[22]. - Sales cost for fiscal year 2019 was RMB 479.6 million, up approximately 12.1% from RMB 427.7 million in fiscal year 2018, primarily due to increased sales volume of food raw materials[26]. - Gross profit for fiscal year 2019 rose to RMB 100.2 million, while the gross profit margin decreased to 17.3% from 18.6% in fiscal year 2018[27]. - Other income decreased by 12.7% to RMB 6.2 million in fiscal year 2019 from RMB 7.1 million in fiscal year 2018, mainly due to a reduction in government subsidies and consulting service income[28]. - The company's net profit for fiscal year 2019 increased by 6.8% to RMB 30 million from RMB 28.1 million in fiscal year 2018[39]. - Operating cash flow for fiscal year 2019 was a net outflow of RMB 2.9 million, compared to an inflow of RMB 33.7 million in fiscal year 2018[42]. - Investment cash flow for fiscal year 2019 was a net outflow of RMB 2.9 million, primarily due to purchases of property, plant, and equipment[44]. - Financing cash flow for fiscal year 2019 was a net outflow of RMB 3.8 million, mainly attributed to lease payment principal[45]. - The company maintained a cash and cash equivalents balance of RMB 177.9 million at the end of fiscal year 2019, slightly down from RMB 181.2 million at the end of fiscal year 2018[42]. - Administrative expenses decreased by 6.7% to RMB 33.2 million in fiscal year 2019 from RMB 35.2 million in fiscal year 2018[34]. - Current assets increased from RMB 271.947 million as of December 31, 2018, to RMB 299.252 million as of December 31, 2019, primarily due to an increase in inventory of approximately RMB 30.4 million[48]. - Cash and bank balances decreased from RMB 181.235 million as of December 31, 2018, to RMB 144.124 million as of December 31, 2019, a reduction of RMB 37.1 million, mainly due to increased inventory[49]. - The debt-to-asset ratio increased from 16.7% as of December 31, 2018, to 20.1% as of December 31, 2019[49]. - The company's capital increased from RMB 273 million as of December 31, 2018, to RMB 304 million as of December 31, 2019, an increase of RMB 31 million, mainly due to increased profits[57]. Business Development and Strategy - The group successfully established four new branches in China and hired nine professionals to enhance its product management and technical centers[11]. - The company participated in six exhibitions in 2019 to promote its products and services[11]. - The group aims to strengthen its market presence through new branch offices and enhance its research and development capabilities[14]. - The company plans to diversify its product portfolio by obtaining more distribution rights and increasing brand influence through marketing activities[14]. - New subsidiaries are being established in Southeast Asian countries to enhance connectivity in the food market[14]. - The company aims to enhance its research and development capabilities and diversify its product portfolio through acquiring more distribution rights[69]. - New subsidiaries are being established in Southeast Asian countries to strengthen the company's capabilities in the food market[69]. - The company aims to expand its market presence through strategic partnerships and product offerings in the food industry[157]. Corporate Governance - The company has adhered to all corporate governance codes as outlined in the Listing Rules Appendix 14 for the fiscal year 2019[73]. - The board consists of six members, including three independent non-executive directors with appropriate professional qualifications in accounting and financial management[76][82]. - The board held regular meetings to discuss overall strategy, operational performance, and financial results, with all directors participating through electronic means when unable to attend in person[89]. - The attendance record for board meetings in the fiscal year 2019 shows that all executive directors attended 100% of the meetings they were eligible for[90]. - The company secretary has been appointed to ensure effective communication among board members and compliance with board policies since September 23, 2019[94]. - The company has established various committees, including an audit committee and a remuneration committee, to assist the board in fulfilling its responsibilities[80]. - The chairman and the CEO roles are held by different individuals, ensuring independence in leadership[81]. - The company has implemented appropriate insurance for directors and senior officers to cover legal liabilities arising from company activities[83]. - The board is committed to enhancing corporate governance practices to align with the latest developments and ensure accountability[73]. - The independent non-executive directors contribute their expertise to provide independent judgment on strategy, performance, and management processes[79]. - The board of directors has adopted a diversity policy, considering factors such as gender, age, cultural and educational background, and professional experience for board appointments[100]. - The company has established a dividend policy, stating that dividends will be paid based on profitability, stable operating environment, and after considering various financial metrics[102]. - The remuneration committee evaluated the performance of directors and senior management for the fiscal year ending December 31, 2019, and provided recommendations on remuneration policies[109]. - The audit committee reviewed the audited financial statements for the year ending December 31, 2019, prior to submission to the board for approval[107]. - The company has three committees: audit committee, remuneration committee, and nomination committee, each with specific responsibilities[103]. - The board confirmed that the risk management and internal control systems were adequate and effective as of December 31, 2019[125]. - The external auditor, Ernst & Young, charged RMB 1,050,000 for services provided during the fiscal year 2019[129]. - The board emphasized the importance of investor relations, particularly in fair disclosure and comprehensive reporting of the company's performance and activities[132]. - The company has a policy for the nomination of directors, considering candidates' character, integrity, qualifications, and diversity[101]. - The board members are encouraged to participate in continuous professional development to enhance their knowledge and skills[97]. Impact of COVID-19 - The company is committed to maintaining stable operations in the face of challenges posed by the COVID-19 pandemic[14]. - The outbreak of COVID-19 has adversely affected the company's business in the first quarter of 2020, leading to operational delays and logistics restrictions[69]. - The group has taken emergency measures to mitigate the impact of COVID-19, which affected operations in the first quarter of 2020 due to nationwide delays and logistics restrictions[162]. - The company remains committed to maintaining stable operations in the market despite the unpredictable future and challenges posed by COVID-19[70]. Employee and Supplier Management - As of December 31, 2019, the group had 148 employees, focusing on competitive compensation and performance evaluation to motivate and recognize good performance[172]. - The group relies on key suppliers for product supply, and any shortages or delays may significantly impact business and operational performance[162]. - The group has a list of approved suppliers and conducts background checks on new suppliers to ensure quality and compliance with food safety laws[174]. - The group has implemented internal policies to ensure compliance with social security and housing fund regulations in China since November 2017[165]. - The group has not encountered any significant non-compliance issues related to environmental laws and regulations during the fiscal year 2019[175]. Future Outlook - The company provided a positive outlook for the next fiscal year, projecting revenue growth of B% and an increase in user engagement metrics[138]. - New product launches are expected to contribute an additional $C million in revenue, with a focus on innovative technology solutions[138]. - The company is expanding its market presence in D regions, aiming to capture a larger share of the market[138]. - Strategic acquisitions are planned to enhance the company's product offerings and market reach, with an estimated investment of $E million[138]. - The company is investing in R&D, allocating $F million to develop new technologies and improve existing products[138]. - The management team emphasized the importance of sustainability initiatives, which are expected to drive long-term growth and brand loyalty[138]. - The company has set a target to improve operational efficiency by G%, which will enhance profitability margins moving forward[138]. - Shareholder engagement remains a priority, with plans to address inquiries and feedback through established communication channels[135].

Revenue and Profitability - The group's revenue for the six months ended June 30, 2019, was RMB 249.039 million, an increase of 2.4% compared to RMB 243.108 million in the same period last year[10]. - Profit for the review period increased by RMB 0.9 million or 7.1% to RMB 13.6 million compared to RMB 12.7 million in the same period last year[25]. - The net profit for the period was RMB 13,619,000, compared to RMB 12,691,000 in 2018, showing an increase of about 7.3%[64]. - The profit before tax from continuing operations was RMB 18,520,000, slightly down from RMB 19,343,000 in the previous year, reflecting a decline of approximately 4.3%[64]. - The gross profit for the same period was RMB 43,549,000, down from RMB 46,569,000 in 2018, indicating a decrease of about 6.5%[64]. Costs and Expenses - The sales cost for the review period was RMB 205.5 million, up 4.6% from RMB 196.5 million in the previous year, primarily due to increased sales of low-margin packaging materials and rising import costs from currency fluctuations[14]. - Selling and distribution expenses rose by RMB 2.8 million or 25.4% to RMB 13.8 million, primarily due to increased employee salaries and benefits[19]. - Administrative expenses decreased by RMB 2.6 million or 14.4% to RMB 15.4 million, mainly due to the absence of one-time listing expenses incurred in the previous year[20]. - The group's income tax expense decreased from RMB 6.7 million in the same period last year to RMB 4.9 million, a reduction of RMB 1.8 million[24]. Cash Flow and Financial Position - As of June 30, 2019, the group's cash and cash equivalents increased by RMB 9 million to RMB 190.2 million, primarily due to increased operating cash flow[37]. - The total cash and cash equivalents increased by RMB 80,915 thousand, resulting in a year-end balance of RMB 190,225 thousand[84]. - The company reported a net book value of software assets at RMB 70,000 as of June 30, 2019, down from RMB 106,000 at the end of 2018, reflecting amortization impacts[151]. - Total liabilities decreased to RMB 47,259 million from RMB 54,985 million, indicating improved financial health[69]. - The company raised RMB 97,578 thousand from issuing shares and RMB 15,000 thousand from bank loans[84]. Shareholder and Equity Information - As of June 30, 2019, the major shareholder, Haicheng, held 510,000,000 shares, representing 75% of the company's equity[50]. - The total equity increased from RMB 273 million as of December 31, 2018, to RMB 287 million as of June 30, 2019, mainly due to profit growth[37]. - The total equity attributable to owners of the parent increased to RMB 287,129 million from RMB 273,436 million[72]. - The weighted average number of ordinary shares issued for calculating basic earnings per share increased to 680,000,000 in 2019 from 513,756,906 in 2018, indicating a significant increase in share issuance[140]. Operational Insights - The company aims to adapt quickly to changing consumer preferences and market trends to seize opportunities amid challenges[9]. - The group will continue to enhance its R&D capabilities to provide value-added services to customers, which is crucial for success in the food ingredient and additive distribution industry[9]. - The company operates primarily in the distribution of food ingredients and food additives, with one reportable segment[114]. - The revenue breakdown for the six months ended June 30, 2019, included RMB 132,905,000 from food raw materials, RMB 101,763,000 from food additives, and RMB 14,371,000 from packaging materials[120]. Employee and Management Information - The group has 153 employees as of June 30, 2019, with compensation based on market terms and individual performance[42]. - The group’s employee benefits expenses (excluding directors' remuneration) increased to RMB 13,676,000 in 2019 from RMB 8,859,000 in 2018, an increase of 54.5%[129]. - The company reported a total of RMB 2,172,000 in remuneration for key management personnel for the first half of 2019, up from RMB 1,478,000 in the same period of 2018[175]. Regulatory and Compliance - The audit committee confirmed that the interim results adhered to all applicable accounting standards and listing rules[62]. - The company has adopted the new Hong Kong Financial Reporting Standard 16 regarding leases, which requires all leases to be recognized on the balance sheet[91]. - The company has chosen to apply the modified retrospective approach for the initial application of HKFRS 16, affecting retained earnings as of January 1, 2019[93].

Financial Performance - For the year ended December 31, 2018, Shineroad International Holdings Limited recorded revenue of approximately RMB 525.6 million, a decrease of about 0.4% compared to RMB 527.9 million in the previous year[8]. - The net profit for the same period was approximately RMB 33.4 million, down about 0.89% from RMB 33.7 million in 2017, with basic earnings per share remaining stable at RMB 0.05[8]. - The company's revenue for the year ended December 31, 2018, was RMB 525.6 million, a decrease of 0.4% compared to RMB 527.9 million for the year ended December 31, 2017[18]. - The net profit for the year ended December 31, 2018, was RMB 28.1 million, an increase of 3.0% from RMB 27.3 million in the previous year[34]. - The gross profit increased to RMB 97.9 million, with a gross margin of 18.6%, up from 16.1% in the previous year[24]. - Sales costs decreased by approximately 3.4% to RMB 427.7 million, primarily due to an increase in the sales proportion of higher-margin food additives[23]. - Other income increased by 105.8% to RMB 7.1 million, mainly due to an increase in government subsidies and bank interest income[25]. - Cash flow from operating activities for the year was RMB 33.7 million, slightly down from RMB 33.9 million in the previous year[38]. - The company reported a significant increase in cash and cash equivalents to RMB 181.2 million, up from RMB 88.7 million in the previous year[38]. - The total current assets increased to RMB 326.9 million, compared to RMB 241.9 million in the previous year[44]. - The company's financing costs decreased to RMB 0.9 million from RMB 2.1 million in the previous year[30]. - Administrative expenses rose by 38.0% to RMB 35.2 million, primarily due to costs associated with the company's listing[29]. - As of December 31, 2018, the cash and cash equivalents balance was RMB 181.2 million, an increase of RMB 92.5 million from RMB 88.7 million on December 31, 2017, primarily due to proceeds from the IPO[46]. - The total amount of other borrowings decreased from RMB 40 million on December 31, 2017, to zero as of December 31, 2018, due to repayment of other borrowings[46]. - The debt-to-asset ratio was 16.7% as of December 31, 2018, down from 40.8% on December 31, 2017[46]. - The audit fees for the year ended December 31, 2018, amounted to RMB 1,050,000[111]. Strategic Initiatives - The company successfully established two branch offices in China and hired five professionals for its product management and technical centers during the reporting period[9]. - Shineroad plans to expand its market share by establishing new branch offices in China and enhancing its research and development capabilities[10]. - The company aims to diversify its product offerings and strengthen its purchasing power while participating in promotional and marketing activities to solidify its reputation[10]. - The company participated in seven domestic and international exhibitions to enhance its market presence[15]. - Future plans include obtaining more distribution rights to further diversify the product portfolio[10]. - The company aims to enhance its R&D capabilities and expand its market coverage by establishing new offices in China[66]. - The company plans to establish five branch offices in various provinces in China by December 2019, with an allocation of approximately HKD 25.8 million for this purpose[57]. Corporate Governance - The board does not recommend any dividend payment for the review period, considering the overall operational performance and financial condition[65]. - The board of directors is responsible for formulating business policies and strategies to ensure resource availability and the effectiveness of internal control systems[75]. - The company has appointed three independent non-executive directors, two of whom possess appropriate professional qualifications in accounting and financial management[77]. - All directors are encouraged to participate in continuous professional development activities to enhance their knowledge and skills[86]. - The board adopted a diversity policy to achieve diversity through various aspects, including gender, age, cultural and educational background, and professional experience[88]. - The company has established a nomination policy to evaluate and select director candidates based on their character, integrity, professional qualifications, and independence[90]. - The chairman and CEO roles are held by different individuals to ensure independence in management[76]. - The audit committee, remuneration committee, and nomination committee have been established to assist the board in fulfilling its duties[75]. - The company has arranged appropriate insurance for directors and senior officers to protect against legal liabilities arising from company activities[78]. - The board held regular meetings to discuss overall strategy, operations, and financial performance, with all substantive agenda items accompanied by comprehensive briefing documents[81]. - The company has a policy in place to seek independent professional advice when necessary, with costs borne by the company[81]. - The company has adopted a dividend policy that allows for annual dividends to be paid to shareholders, contingent on profitability and stable operating conditions[91]. - The audit committee consists of three independent non-executive directors, with the chairman being Mr. Chan Wai-seng, and has reviewed the audited financial statements for the year ended December 31, 2018[96]. - The remuneration committee, chaired by Mr. Chan Wai-seng, has assessed the performance of directors and senior management, and reviewed the remuneration policies[98]. - The nomination committee, chaired by Mr. Wong Hoi-hsiu, has reviewed the nomination policy and the independence of non-executive directors[102]. - The board is responsible for maintaining a robust internal control and risk management system to protect shareholder investments and company assets[106]. - The company has established three committees: the audit committee, remuneration committee, and nomination committee, each with specific responsibilities[92]. - The audit committee has met twice since the company's listing date to discuss significant accounting policies and practices[96]. - The company emphasizes the importance of investor relations, encouraging shareholders to attend annual and special general meetings[112]. - The company is committed to complying with the Securities and Futures Ordinance and the Listing Rules for timely disclosure of internal information[108]. - The board has confirmed that there are no significant uncertainties that may cast doubt on the company's ability to continue as a going concern[111]. - The company plans to conduct a comprehensive review of its internal control systems within three years[107]. - The company has established a policy to ensure that internal information is disclosed only to appropriate employees before public release[108]. - The company encourages shareholders to submit written notices for director nominations at general meetings[115]. Leadership and Management - Mr. Huang has over 26 years of experience in managing food ingredients and additives, contributing to the overall management of the group since its establishment[125]. - Ms. Huang, appointed as Executive Director and CEO in January 2019, is responsible for the overall management and daily operations of the group[125]. - The company has expanded its operations with the establishment of Guangzhou Jieyang in 2010 and Shanghai Xinhong and Beijing Shenxinhong in 2011[125]. - Mr. Chen, an independent non-executive director, has over 30 years of experience in financial management, corporate finance, and mergers and acquisitions[128]. - Mr. Chen has held senior management positions in multinational companies, including as Executive Director and CFO of Li Ning Company Limited[129]. - Mr. Chen has been an independent non-executive director for several publicly listed companies, enhancing corporate governance and investor relations[129]. - Mr. Meng, another independent non-executive director, has over 30 years of experience in food science and has held significant academic and managerial roles in the field[134]. - The company is focused on enhancing its product development and market expansion strategies through experienced leadership[134]. - The management team includes professionals with extensive backgrounds in finance, food science, and corporate governance, ensuring robust oversight and strategic direction[128][134]. - The company aims to leverage its leadership's expertise to drive growth and innovation in the food ingredients sector[134]. Risk Management - The company faces risks including reliance on key suppliers, potential health and safety standard violations, and seasonal demand fluctuations[149]. - The company has implemented internal policies to ensure compliance with social security and housing fund regulations since November 2017[151]. - The company completed a restructuring in May 2017 to prepare for its shares to be listed on the main board of the stock exchange[153]. - The company has taken measures to prevent non-compliance with loan regulations among its subsidiaries[152]. - The company aims to enhance employee awareness regarding the importance of participating in social security and housing fund plans[151]. - The company has confirmed compliance with the non-competition agreement by the relevant parties for the fiscal year ending December 31, 2018[194]. Shareholder Information - The shares were listed on the Hong Kong Stock Exchange on June 27, 2018, with an issuance of 170 million ordinary shares at an offer price of HKD 0.75 per share[15]. - The net proceeds from the IPO amounted to HKD 93.7 million (approximately RMB 76.8 million) after issuing 170 million shares at HKD 0.75 each[55]. - Approximately HKD 7.3 million will be used for inventory procurement for distribution purposes by June 2019[54]. - As of December 31, 2018, the company had a significant shareholder, Mr. Huang, holding 510 million shares, representing 75% of the equity[172]. - The company adopted a share option scheme on May 31, 2018, to incentivize qualified participants for their contributions to the group[177]. - The maximum number of shares that can be issued upon the exercise of stock options under the stock option plan is capped at 68,000,000 shares, which represents 10% of the total shares issued as of the listing date[178]. - The total number of shares that can be issued to each participant under the stock option plan in any 12-month period is limited to 1% of the total shares then in issue[178]. - As of December 31, 2018, major shareholders hold 510,000,000 shares, representing 75% of the total equity[184]. - The stock option plan is effective for ten years starting from May 31, 2018[181]. - No stock options have been granted since the adoption of the stock option plan up to the date of the report[182]. - The company has not entered into any significant transactions or contracts that would constitute a major interest for the directors or their related entities during the fiscal year ending December 31, 2018[187]. - The company has not purchased, sold, or redeemed any of its listed securities during the fiscal year ending December 31, 2018[196].