Financial Performance - Revenue for the year ended 30 June 2024 was RMB 354,863,000, a decrease of 33.1% compared to RMB 530,207,000 for the eighteen months ended 30 June 2023[2] - Gross profit for the year was RMB 11,927,000, down from RMB 16,744,000, reflecting a gross margin of approximately 3.4%[2] - Loss before tax for the year was RMB 81,593,000, an improvement from a loss of RMB 152,310,000 in the previous period[2] - Loss for the year attributable to the owners of the Company was RMB 79,931,000, compared to RMB 150,503,000 for the previous period[2] - Total comprehensive expenses for the year amounted to RMB 79,408,000, down from RMB 154,981,000 in the previous period[2] - Basic and diluted loss per share was RMB 0.5987, compared to RMB 1.2783 for the previous period[2] - The Group's loss for the Reporting Period decreased to approximately RMB79.9 million due to reduced sales and distribution costs[63] Assets and Liabilities - Non-current assets decreased to RMB 23,155,000 from RMB 14,885,000 year-on-year[4] - Current assets decreased to RMB 240,412,000 from RMB 271,430,000 year-on-year[4] - Net current assets decreased to RMB 199,217,000 from RMB 226,208,000 year-on-year[4] - Total equity decreased to RMB 178,375,000 from RMB 219,445,000 year-on-year[4] - Trade receivables decreased from RMB 105,833,000 in 2023 to RMB 90,271,000 in 2024, with impairment losses reducing from RMB 1,455,000 to RMB 358,000[47] - The Group's inventory decreased from RMB 79,181,000 in 2023 to RMB 74,716,000 in 2024, with raw materials dropping significantly from RMB 1,293,000 to RMB 434,000[44] - Cash and cash equivalents as of June 30, 2024, were approximately RMB60.9 million, down from approximately RMB66.5 million as of June 30, 2023, with no bank borrowings[81] Revenue Segments - The Group's principal activities include packaging and sales of seafood products and procurement and sales of fast-moving consumer goods[1] - Revenue from external customers for the year ended June 30, 2024, was RMB 530,207, a decrease from RMB 354,863 for the eighteen months ended June 30, 2023[16] - The Group's revenue from the food products business decreased by 33.1% to RMB354.9 million from RMB530.2 million in 2023[63] - Segment gross profit from the food products business decreased by 28.8% to RMB11.9 million from RMB16.7 million in 2023, with a slight increase in gross margin from 3.2% to 3.4%[63] Cost Management - Selling and distribution expenses decreased due to tightened cost control on promotion and advertising activities during the Reporting Period[76] - Administrative expenses also decreased as a result of tightened cost control measures implemented during the Reporting Period[80] - Staff costs, including salaries and bonuses, decreased to RMB 64,766,000 from RMB 118,712,000, reflecting a reduction of approximately 45.5%[32] Compliance and Governance - The consolidated financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards (HKFRSs)[2] - The Group's financial statements comply with the applicable disclosure provisions of the Rules Governing the Listing of Securities on the Main Board[2] - The Audit Committee has reviewed the consolidated results for the year ended June 30, 2024, and confirmed compliance with relevant accounting standards[101] - The Company has adopted the standard code for securities trading since June 22, 2017, with all directors confirming compliance for the year[98] Future Outlook - The company expects household consumption expenditure to grow by 6.0% in 2024, driven by increasing disposable income and decreasing savings rate[87] - The company aims to diversify its business development strategies and expand into new markets to remain competitive[87] Shareholder Information - The Group's public float was 40.98% as of June 30, 2024, down from 56.25% in 2023, maintaining compliance with the 25% requirement[59] - The Group completed a placing of 24,000,000 shares at HK$1.80 per share, raising approximately HK$42.3 million in December 2023[57] - The Board did not recommend the payment of a final dividend for the year ended June 30, 2024[102]

Financial Performance - The Group's revenue increased to approximately RMB195.9 million during the Reporting Period, up from approximately RMB121.2 million for the six months ended June 30, 2022, representing a growth of 61%[20] - Gross profit for the Reporting Period was approximately RMB6.6 million, with a gross profit margin of 3.4%, compared to a gross profit of approximately RMB3.7 million and a margin of 3.0% for the same period in 2022[13] - The Group recorded a loss of approximately RMB38.1 million, an improvement from a loss of RMB40.3 million in the previous year[13] - Revenue increased from approximately RMB121.7 million for the six months ended 30 June 2022 to approximately RMB195.9 million for the six months ended 31 December 2023, representing an increase of about 60.8%[22] - Gross profit for the food business was RMB6.59 million with a gross profit margin of 3.4% for the six months ended 31 December 2023, compared to a gross profit of RMB3.12 million and a margin of 2.6% for the same period in 2022[28] - Total comprehensive loss for the period was RMB 40,312,000, compared to RMB 44,631,000 for the same period last year, showing a reduction in overall losses[105] - Basic and diluted loss per share was RMB 0.310, an improvement from RMB 0.356 in the previous period[105] - The total revenue for the group for the six months ended December 31, 2023, was RMB 195,916,000, compared to RMB 121,737,000 for the same period in 2022, reflecting a growth of 60.9%[140] - The total loss before taxation for the six months ended December 31, 2023, was RMB 38,127,000, compared to a loss of RMB 40,297,000 for the same period in 2022, showing a slight improvement[149] Business Operations - The Group offers over 100 types of dried seafood, 30 types of algae and fungi, and 60 types of seafood snacks, aiming to differentiate itself through a diverse product portfolio[14] - Revenue from the food business specifically increased from approximately RMB121.2 million for the six months ended June 30, 2022, to approximately RMB195.9 million during the Reporting Period[20] - The Group's products are sold through various channels, including supermarkets, trading companies, convenience stores, and e-commerce retailers[19] - The Group has engaged in the procurement and sales of fast-moving consumer goods since early 2020, expanding its business scope[12] - The Group sources high-quality raw materials and sub-contracts processing to third parties, enhancing operational efficiency[12] - The Group's brand "Wofan" is used for selling packaged products, contributing to brand recognition in the market[12] Financial Position - The Group's net current assets increased from approximately RMB226.2 million as at 30 June 2023 to approximately RMB229.8 million as at 31 December 2023[39] - As at 31 December 2023, cash and cash equivalents were approximately RMB42.0 million, down from approximately RMB66.5 million as at 30 June 2023[40] - The gearing ratio as at 31 December 2023 was 0.121, a slight decrease from 0.127 as at 30 June 2023[47] - The Group did not pledge any assets as at 31 December 2023[49] - Current assets increased to RMB 266,855,000 from RMB 271,430,000, showing a decrease of about 1.7%[108] - Total equity decreased to RMB 217,472,000 from RMB 219,445,000, a decline of approximately 0.9%[109] - Cash and cash equivalents decreased to RMB 41,982,000 from RMB 66,481,000, a decline of approximately 36.8%[108] Investments and Financing - There were no significant investments, material acquisitions, or disposals of subsidiaries during the Reporting Period[50] - A placing agreement was entered into on November 20, 2023, for the placement of up to 24,000,000 shares at a price of HK$1.80 per share, with estimated net proceeds of approximately HK$42.3 million[60] - As of December 31, 2023, approximately HK$30.0 million of the net proceeds from the placing has been utilized for general working capital[61] - The company raised RMB 38,338,000 from the issuance of new shares during the six months ended 31 December 2023, compared to RMB 14,490,000 in the same period of the previous year, reflecting a growth of 164.5%[116] Employee and Management - The Group had 397 full-time employees as of December 31, 2023, down from 405 on June 30, 2023[58] - Short-term benefits for key management personnel increased to RMB 2,554,000 for the six months ended December 31, 2023, compared to RMB 1,943,000 for the same period in 2022, reflecting a growth of 31.5%[181] - The total remuneration for key management personnel for the six months ended December 31, 2023, was RMB 2,568,000, an increase from RMB 1,984,000 in the same period of 2022[181] Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with it, except for a deviation regarding meetings with Independent Non-executive Directors[94] - The Audit Committee has reviewed the interim results for the six months ended December 31, 2023, ensuring compliance and accuracy in financial reporting[98] Market and Industry Outlook - The Group expects a gradual recovery in industry demand and improvement in the operating environment of the food industry in 2024[68] - The Group plans to actively develop new business opportunities, particularly in the Internet sector, to diversify income sources[70] Inventory and Receivables - Trade payables rose significantly to RMB 20,736,000 from RMB 9,206,000, indicating an increase of approximately 125.5%[108] - Total inventories rose to RMB 92,524,000 as of December 31, 2023, from RMB 79,181,000 as of June 30, 2023, marking an increase of approximately 16.8%[164] - Trade receivables increased to RMB 114,971,000 as of December 31, 2023, up from RMB 105,833,000 as of June 30, 2023, representing an increase of approximately 8.5%[164] - The impairment loss on trade receivables decreased to RMB 250,000 as of December 31, 2023, compared to RMB 1,455,000 as of June 30, 2023, indicating an improvement in receivables quality[164]

智通财经APP获悉，中国升海集团(01676)绩后大跌超10%，2个交易日大跌32%，截至发稿，跌10.99%，报1.70港元，成交额223万港元。 消息面上，中国升海集团发布截至2023年12月31日止6个月中期业绩，收入1.96亿元(人民币，下同)，同比增长60.93%;公司拥有人应占亏损4031.2万元，同比收窄9.68%;每股亏损0.31元。 公告称，受到集团食品业务复苏所带动，报告期间集团收益增加至约1.96亿元。 海通证券指出，近期水产品价格表现不错，较春节前有明显上涨趋势，也将利于水产饲料销售。同时，在行业面临一定压力的背景下，行业格局或将进一步向龙头集中，且公司估值处于低位。 ...

Revenue and Profitability - Revenue for the six months ended 31 December 2023 was RMB 195,916,000, representing an increase of 60.8% compared to RMB 121,737,000 for the same period in 2022[5]. - Revenue for the six months ended December 31, 2023, was RMB 195,916,000, an increase of 61.5% compared to RMB 121,156,000 for the same period in 2022[27]. - Revenue from marine products sales accounted for the entirety of the revenue, with no contribution from fast-moving consumer goods during the reporting period[37]. - The Group's revenue increased to approximately RMB195.9 million for the six months ended December 31, 2023, up from approximately RMB121.2 million for the same period in 2022, representing a growth of 61.5%[65][67]. - Gross profit for the period was RMB 6,590,000, up from RMB 3,705,000, indicating a gross margin improvement[5]. - Gross profit for the Reporting Period was approximately RMB6.6 million, with a gross profit margin of 3.4%, compared to a gross profit of RMB3.7 million and a margin of 3.0% for the six months ended June 30, 2022[65][67]. - The Group's gross profit margin increased to approximately 3.4% for the six months ended 31 December 2023, compared to 3.0% for the same period in 2022, primarily due to an increase in average selling price[79]. Loss and Expenses - Loss for the period narrowed to RMB 38,127,000 from RMB 40,297,000, reflecting a reduction in losses by 5.4%[5]. - Total comprehensive loss for the period was RMB 40,312,000, compared to RMB 44,631,000 in the previous period, showing a decrease of 9.4%[5]. - The loss before taxation for the period was RMB 40,297,000, with corporate expenses amounting to RMB 8,748,000[40]. - The Group recorded a loss of approximately RMB38.1 million for the Reporting Period, an improvement from a loss of RMB40.3 million in the same period last year[65][67]. - Selling and distribution expenses rose slightly to RMB 35,406,000 from RMB 34,923,000, an increase of 1.4%[5]. - Administrative expenses decreased significantly to RMB 11,944,000 from RMB 16,458,000, a reduction of 27.3%[5]. Assets and Liabilities - Cash and cash equivalents decreased to RMB 41,982,000 from RMB 66,481,000, a decline of 36.9%[7]. - Trade receivables increased to RMB 114,721,000 from RMB 104,378,000, reflecting a growth of 9.3%[7]. - Non-current assets decreased to RMB 14,036,000 from RMB 14,885,000, a reduction of 5.7%[7]. - Net assets as of 31 December 2023 were RMB 217,472,000, down from RMB 219,445,000, a decrease of 0.9%[7]. - Trade receivables increased to RMB 114,971,000 from RMB 105,833,000, with an impairment loss of RMB 250,000[54]. - Trade payables aged 0-30 days rose to RMB 20,736,000 from RMB 9,206,000, indicating a significant increase in short-term liabilities[58]. - Net current assets rose from approximately RMB226.2 million as of 30 June 2023 to approximately RMB229.8 million as of 31 December 2023, mainly attributed to an increase in inventories[91]. - Cash and cash equivalents decreased to approximately RMB42.0 million as of 31 December 2023, down from approximately RMB66.5 million as of 30 June 2023, with no bank borrowings reported[92]. Business Operations - The Group's sales were entirely domestic, with all revenue generated from customers in Mainland China, and no major customers contributed 10% or more of the total revenue[30][34]. - The segment results for the packaging and sales of marine products segment showed a loss of RMB 35,079,000 for the six months ended December 31, 2023[37]. - The Group has identified two operating segments: packaging and sales of marine products, and all other segments, with a focus on resource allocation and performance assessment[21][25]. - The Group's products are distributed through various channels, including supermarkets, convenience stores, and e-commerce retailers, to maximize market reach[67][69]. - The food business accounted for 100% of the Group's revenue during the Reporting Period, while revenue from fast-moving consumer goods was nil, down from RMB581,000 in the previous year[75][71]. Future Outlook and Strategy - The outlook for 2024 indicates a clearer direction for demand improvement, with expectations of a gradual recovery in consumer confidence and easing of inventory pressures in the food industry[117]. - The company plans to actively develop new business opportunities, particularly in the Internet sector, to diversify income sources and stabilize financial performance[119]. - The Group's strategy includes sourcing high-quality raw materials and subcontracting processing to enhance product quality and market competitiveness[64][68]. Share Capital and Financing - The Group's issued and fully paid shares increased from 120,000,000 shares at the beginning of the period to 144,000,000 shares by December 31, 2023, reflecting a capital raising effort[62]. - The net proceeds from the placing of 24,000,000 shares at a price of HK$1.80 per share are approximately HK$42.3 million, aimed at strengthening the Group's financial position[63]. - The net proceeds from the placing are estimated to be approximately HK$42.3 million, with about HK$30.0 million utilized for general working capital as of 31 December 2023[108][115]. Compliance and Governance - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period, ensuring compliance with HKFRSs[18][23]. - The financial statements for the period ended June 30, 2023, were unaudited and prepared in accordance with the applicable disclosure provisions of the Listing Rules[2]. - The Group did not adopt formal hedging policies for foreign currency exchange risks during the Reporting Period[104]. - The Board did not recommend the payment of an interim dividend for the six months ended 31 December 2023[106].

Financial Performance - During the reporting period, the Group's revenue from the food products business increased by 530.8% to RMB 530.2 million from RMB 84.1 million in 2021[15]. - Segment gross profit rose by 124.2% to RMB 16.7 million from RMB 7.5 million in 2021[15]. - The Group's loss for the reporting period expanded to approximately RMB 151.5 million due to increased selling and distribution costs[15]. - Revenue from the food business increased by 530.8% from RMB 84.1 million in 2021 to RMB 530.2 million[18]. - Segment gross profit rose by 124.2% from RMB 7.5 million in 2021 to RMB 16.7 million[18]. - The group's loss expanded to approximately RMB 151.5 million during the reporting period due to increased sales and distribution costs[18]. - The gross profit margin dropped sharply from 11.4% in 2021 to 3.2% in 2023, mainly due to a decrease in average selling prices resulting from the Group's flexible pricing[56][58]. - The Group's capital expenditure during the Reporting Period was approximately RMB 0.5 million, significantly lower than approximately RMB 3.0 million in the year ended December 31, 2021[80]. - The Group reported an income tax credit of approximately RMB 0.8 million during the Reporting Period, compared to an income tax expense of RMB 1.3 million in 2021[63]. Economic Environment - The household savings rate has broadly returned to pre-epidemic levels, indicating a shift in consumer behavior[16]. - Domestic consumer demand for seafood has weakened recently due to the impact of the Fukushima nuclear incident in Japan[16]. - China's GDP growth is forecasted to be 5.1% in 2023, indicating a transition in economic growth[16]. - The momentum of industrial production growth is expected to be restored due to demand recovery and supply-side support policies[16]. - The economic transition is expected to shift from investment and export-oriented to consumption-oriented[16]. - The current economic transition in China is expected to slow growth but improve quality, shifting from investment and export-driven to consumption-driven[19]. - The Mainland economy has not shown significant improvement post-COVID-19 recovery, affecting consumer spending power[41]. Marketing and Business Strategy - The Group plans to strengthen marketing efforts in supermarkets and adopt flexible pricing strategies to combat market competition[15]. - The Group's attempts to enhance marketing efforts have yielded some results, although gross profit remains under pressure[15]. - The Group aims to actively develop new businesses, particularly in the Internet sector, to diversify income sources and stabilize financial performance[21]. - The integration of marketization and informationization is driving the transformation of traditional industries, creating opportunities in the Internet economy[23]. - The Group will continue to monitor market changes to identify opportunities for new business development[23]. - The Group has suspended its procurement services in the fast-moving consumer goods business due to a slowdown in consumer spending post-epidemic[47]. - The Group's revenue increased by approximately 512.9% from approximately RMB 86.5 million in 2021 to approximately RMB 530.2 million in 2023, primarily due to enhanced marketing efforts in supermarkets and flexible pricing strategies[53]. Financial Position - As of June 30, 2023, net current assets decreased to approximately RMB 226.2 million from approximately RMB 334.9 million as of December 31, 2021, primarily due to a reduction in cash and cash equivalents and trade receivables[66]. - Cash and cash equivalents amounted to approximately RMB 66.5 million as of June 30, 2023, down from approximately RMB 176.4 million as of December 31, 2021, with no bank borrowings reported[67]. - Trade receivables as of June 30, 2023, were approximately RMB 104.4 million, a decrease from approximately RMB 115.6 million as of December 31, 2021, with an average credit period of 30 to 90 days[78]. - Inventories increased to approximately RMB 79.2 million as of June 30, 2023, from approximately RMB 61.7 million as of December 31, 2021, with inventory turnover days reduced to approximately 75 days[77][84]. - The gearing ratio as of June 30, 2023, was 0.127, compared to 0.059 as of December 31, 2021, indicating a slight increase in financial leverage[76]. - As of June 30, 2023, trade payables amounted to approximately RMB 9.2 million, an increase from approximately RMB 2.5 million as of December 31, 2021[86]. Corporate Governance - The Board did not recommend the payment of a final dividend for the reporting period[93]. - The Group's distributable reserves as of June 30, 2023, amounted to approximately RMB 70.0 million, down from approximately RMB 85.1 million as of December 31, 2021[139][146]. - The Group's financial results and overall financial condition will be considered when proposing any future dividend payouts[120][123]. - The Group recognizes employees as valuable assets and provides competitive remuneration packages to attract and motivate them[127][133]. - The Group has established long-standing relationships with suppliers and conducts annual appraisals[128][133]. - The company has received confirmations of independence from all Independent Non-executive Directors, ensuring compliance with the Listing Rules[156]. - There were significant changes in the board of directors, including the resignation of the CEO on August 18, 2023, and the appointment of a new CEO on the same date[152]. Shareholder Information - As of the final report date, Precisely Unique Limited holds 52,500,000 shares, representing 43.75% of the company's total shareholding[182]. - Lau Shek Yau is a beneficial owner of 8,000,000 shares, accounting for 6.67% of the total shareholding[182]. - The largest customer accounted for approximately 6.9% of the total revenue for the fiscal year 2023, while the top five customers represented about 26.7% of total revenue[147]. - The largest supplier contributed approximately 12.7% to the total procurement amount for the fiscal year 2023, with the top five suppliers accounting for around 46.4%[147]. Risk Management - The Group has implemented a risk management system covering financial security, production, logistics, technology, and compliance to address operational risks[126][132]. - The company did not redeem or purchase any of its listed securities during the reporting period[190]. - There were no connected transactions or continuing connected transactions during the reporting period[187]. - No related party transactions or continuing related party transactions were conducted during the reporting period that required compliance with the listing rules[195].

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佈的內容概不負 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佈全部 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。 中 國 升 海 集 團 有 限 公 司 China Shenghai Group Limited （於開曼群島註冊成立的有限公司） （股份代號：1676） 截至二零二三年六月三十日止十八個月之末期業績 之澄清公佈 謹此提述中國升海集團有限公司（「本公司」）日期為二零二三年九月二十九 日之公佈，內容有關截至二零二三年六月三十日止十八個月末期業績（「該公 佈」）。除另有界定者外，本公佈所用之詞彙與該公佈所界定者具備相同涵 義。 本公司謹此澄清本集團之核數師長青（香港）會計師事務所有限公司（「長 青」）已就該公佈所載之數字與本集團截至二零二三年六月三十日止十八個月 之經審核綜合財務報表所載之金額核對一致。由於長青就此進行之工作並非根 據香港會計師公會頒佈之香港核數準則、香港審閱聘用準則或香港核證聘用準 則而進行之核證聘用，因此，長青並無對該公佈發出任何核證。 除本公佈所披露者外，該公佈所載的所有資料維持不變。 ...

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. 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佈的內容概不負責，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佈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。 中 國 升 海 集 團 有 限 公 司 China Shenghai Grou ...

Revenue Performance - The Group's revenue surged 3 times to approximately RMB 348.4 million during the reporting period[15] - Total revenue for the Group increased to approximately RMB348.4 million, up from approximately RMB86.5 million in the previous year[25] - Revenue for the twelve months ended December 31, 2022, was RMB 348,438,000, a significant increase from RMB 86,506,000 in 2021, representing a growth of approximately 303%[107] - Revenue from marine products sales reached RMB 347,834,000 in 2022, a significant increase from RMB 84,055,000 in 2021, representing a growth of 314%[143] - The Group's revenue from food business surged threefold from approximately RMB84.1 million in 2021 to approximately RMB347.8 million during the Reporting Period[21] Profitability and Loss - Gross profit recorded approximately RMB 11.0 million, with a gross profit margin plummeting to 3.1% compared to 11.4% in the previous year[15] - The Group reported a greater loss of approximately RMB 103.5 million, an increase from a loss of RMB 97.7 million in the previous year[15] - The company reported a loss before income tax of RMB 104,366,000 for the twelve months ended December 31, 2022, compared to a loss of RMB 96,321,000 in 2021, reflecting a deterioration of approximately 8.5%[107] - For the twelve months ended December 31, 2022, the total comprehensive loss amounted to RMB 108,744,000, compared to a loss of RMB 97,101,000 in 2021, representing an increase of approximately 11.9%[109] - The loss attributable to the owners of the Company for the period was RMB 103,523,000, up from RMB 97,446,000 in the previous year, indicating a year-over-year increase of about 6.5%[109] Expenses and Costs - Selling and distribution expenses increased due to higher sales incentives and promotional activities during the Reporting Period[33] - Selling and distribution expenses increased to RMB 107,205,000 from RMB 31,380,000 in 2021, marking an increase of approximately 242%[107] - Administrative expenses rose primarily due to increased headquarters expenses during the period[34] - Costs of inventories for 2022 amounted to RMB 337,464,000, significantly higher than RMB 73,302,000 in 2021[159] Assets and Liabilities - Net current assets decreased from approximately RMB334.9 million as of December 31, 2021, to approximately RMB258.2 million as of December 31, 2022[43] - Cash and cash equivalents significantly dropped from RMB 176,402,000 in 2021 to RMB 90,404,000 in 2022, a decrease of around 48.9%[112] - Total liabilities increased from RMB 31,185,000 in 2021 to RMB 50,079,000 in 2022, marking an increase of approximately 60.7%[112] - Net assets decreased from RMB 358,992,000 in 2021 to RMB 264,738,000 in 2022, a decline of about 26.3%[113] Share Capital and Financing - The company issued new shares resulting in net proceeds of RMB 14,490,000 in 2022, an increase from RMB 9,976,000 in 2021, showing a positive trend in capital raising efforts[120] - The issued and fully paid share capital increased to RMB 10,383,000 in 2022 from RMB 9,388,000 in 2021, reflecting new share subscriptions[189] - The company completed a subscription of 12,000,000 shares at a price of HK$1.5 per share, raising net proceeds of approximately HK$17.4 million on April 14, 2022[191] Employee and Management Information - The Group had 389 full-time employees as of December 31, 2022, an increase from 313 employees as of December 31, 2021[60][65] - The remuneration for directors in 2022 totaled RMB2,398,000, a decrease from RMB5,249,000 in 2021, reflecting a reduction in short-term benefits[197] - The company’s total short-term benefits for key management personnel decreased significantly from RMB5,207,000 in 2021 to RMB2,374,000 in 2022[197] Corporate Governance and Compliance - The company has complied with the Corporate Governance Code throughout the six months ended December 31, 2022[98] - The Audit Committee, consisting of three independent non-executive directors, has reviewed the interim results for the twelve months ended December 31, 2022[103] - The company plans to seek compliance with code provision A.2.1 by appointing a suitable candidate for the chief executive officer position in the future[99] Strategic Initiatives - The Group aims to diversify its sources of income to stabilize financial performance amid improving sales in the food business[75] - The company aims to enhance promotional efforts and expand sales channels to solidify growth momentum due to improved food sales[77] - The group is focused on expanding its existing food business layout through strategic partnerships and market opportunities[77] Market and Customer Insights - All revenue was generated from domestic sales within the PRC, Hong Kong, and South Korea, with no customer contributing 10% or more of the Group's revenue during the twelve months ended December 31, 2022[144][145] - The Group's major customers did not contribute significantly to revenue, with no single customer accounting for 10% or more of total revenue in 2022[144] Research and Development - Research expenditure increased to RMB 780,000 in 2022 from RMB 652,000 in 2021, indicating a focus on innovation[159]

Revenue and Profitability - The Group's revenue surged 1.3 times to approximately RMB121.7 million in the Reporting Period from approximately RMB53.0 million for 2021H[10] - Gross profit for the Reporting Period fell to approximately RMB3.7 million, down from approximately RMB10.1 million in 2021H, resulting in a gross profit margin of 3% compared to 19.1% in 2021H[10] - The Group recorded a greater loss of approximately RMB40.3 million in the Reporting Period, compared to a loss of RMB31.4 million in 2021H[10] - Revenue from the food business surged 1.5 times from approximately RMB47.5 million in 2021H to approximately RMB121.1 million during the Reporting Period[14] - The gross margin for the food business decreased from 9.9% in 2021H to 2.6% in 2022H[14] - Total revenue for the Group increased 1.3 times to approximately RMB121.7 million from RMB53.0 million in the first half of 2021, mainly due to the rise in food business sales[22] - Revenue from fast moving consumer goods decreased to RMB581,000 from RMB5.3 million in the first half of 2021, reflecting a significant decline in orders from Hong Kong and the cessation of procurement services to Korea[19] - The Group's gross profit for the food business was RMB3.1 million, with a gross profit margin of 2.6% during the reporting period[26] - Revenue from the sale of food products reached RMB121,156,000 in the first half of 2022, a significant increase of 154.5% compared to RMB47,534,000 in the same period of 2021[106] - Total revenue for the Group in the first half of 2022 was RMB121,737,000, up 130.5% from RMB52,793,000 in the first half of 2021[106] Expenses and Financial Management - Selling and distribution expenses rose by 63.2% to RMB34.9 million from RMB20.7 million in the first half of 2021, as the Group enhanced promotional activities for its food business[30] - Administrative expenses increased by 27.1% to RMB16.5 million from RMB12.9 million in the first half of 2021, attributed to higher staff costs in the food business[31] - The cost of inventories recognized as expenses for the six months ended June 30, 2022, was RMB118,032,000, significantly higher than RMB42,713,000 in the same period of 2021[118] - Contributions to retirement benefit schemes increased to RMB1,943,000 in 2022 from RMB1,204,000 in 2021, representing a growth of 61.2%[160] Cash Flow and Assets - Cash and cash equivalents decreased to approximately RMB84.9 million as of June 30, 2022, down from approximately RMB176.4 million as of December 31, 2021[35] - The company reported a net cash used in operating activities of RMB(109,429,000), significantly higher than RMB(16,356,000) for the same period in 2021, reflecting an increase in cash outflow of approximately 570%[98] - The company generated net cash from financing activities of RMB17,697,000 for the six months ended June 30, 2022, compared to RMB1,880,000 in the same period of 2021, marking an increase of about 839%[98] - As of June 30, 2022, the company's net assets decreased to RMB328,851,000 from RMB358,992,000 as of December 31, 2021, representing a decline of approximately 8.4%[81] - The Group's trade receivables increased to RMB177,404,000 as of June 30, 2022, from RMB115,623,000 at the end of 2021, marking a rise of 53.5%[80] - The Group's total inventories as of June 30, 2022, included raw materials of RMB2,168,000 and finished goods of RMB90,525,000, totaling RMB92,693,000, compared to RMB61,737,000 as of December 31, 2021[126] Strategic Initiatives and Market Position - The recovery in sales was attributed to slowed industry consolidation in the fast-growing snack market in China, which is projected to grow at a CAGR of 6.7% by 2027[14] - The Group continues to differentiate itself by providing a broad and convenient choice of safe and quality products[12] - The Group plans to enhance promotional activities and broaden sales coverage to support growth in the food business[18] - A potential cooperation memorandum was signed with Zhonghong Pingbo for long-term strategic collaboration to provide high-quality agricultural products globally[18] - The Chinese snack market is projected to grow at a compound annual growth rate of 6.7% until 2027, which may provide further opportunities for the Group's food business[15] Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code throughout the six months ended June 30, 2022[64] - The roles of chairman and chief executive are currently held by the same individual, which deviates from the Corporate Governance Code, but the Board believes this facilitates business strategy execution[66] - The Company may seek to comply with the Corporate Governance Code by appointing a suitable candidate for the chief executive officer position in the future[66] - The Company has adopted the Model Code for securities transactions by Directors, and all Directors confirmed compliance during the Reporting Period[69] Share Capital and Financing - The Company entered into a Subscription Agreement on March 28, 2022, to issue 12,000,000 Subscription Shares at a price of HK$1.5 per share, raising approximately RMB15 million[46] - The net proceeds from the 2021 Subscription amounted to approximately HK$11.6 million, with specific allocations for staff expenses and professional fees[41] - The total utilized amount from the 2022 Subscription is RMB8.20 million, leaving RMB6.80 million unutilized[45] - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2022, consistent with the previous year where no dividend was paid[144] - The company completed a subscription of 12,000,000 new shares at a price of HK$1.5 per share, resulting in net proceeds of approximately HK$17.5 million after deducting share issue expenses of about HK$0.5 million[150] Employee and Operational Metrics - The Group had 492 full-time employees as of June 30, 2022, up from 313 employees as of December 31, 2021, reflecting a growth of 57.3%[73] - Staff costs for the six months ended June 30, 2022, totaled RMB3,492,000, down from RMB9,145,000 in the previous year[118] - The Group's non-current liabilities increased to RMB25,734,000 as of June 30, 2022, from RMB15,803,000 as of December 31, 2021, representing an increase of approximately 62.6%[81] Related Party Transactions - Related party transactions included rental expenses of RMB60,000 for cost of sales and RMB40,000 for administrative expenses with Xiamen Yehong Foodstuffs Company Limited[156] - The company confirmed that purchases from related parties were conducted under trading terms similar to those with third parties, with costs of sales amounting to RMB107,000 and RMB59,000 for Mr. Liu Rongjian and Mr. Liu Rongzhong respectively[157]

Financial Performance - The Group's revenue from food business decreased by approximately 46.0% from approximately RMB 155.6 million in 2020 to approximately RMB 84.1 million during the Reporting Period[13]. - Gross profit from the food segment fell 68.3% from RMB 23.6 million in 2020 to RMB 7.5 million during the Reporting Year[13]. - Gross profit from the fast-moving consumer goods business decreased to RMB 2.5 million from RMB 7.2 million in 2020[14]. - The Group's revenue for the year ended December 31, 2021, fell by approximately 46.8% to approximately RMB 86.5 million from approximately RMB 162.7 million in 2020[46]. - Gross profit for the Reporting Year decreased by 67.8% to approximately RMB 9.9 million, with a gross profit margin dropping to 11.5% from 18.9% in 2020[46]. - The Group recorded a loss of approximately RMB 97.7 million for the Reporting Year, compared to a loss of RMB 32.3 million in 2020[46]. - The gross profit margin for the Group was approximately 11.4% during the Reporting Period, down from approximately 18.9% in the previous year[60]. - The Group's gross profit from the food business was approximately RMB 7.5 million, representing a gross profit margin of 8.9%[60]. Market Conditions - The economic outlook remains uncertain due to sporadic COVID-19 outbreaks and intensified competition in the domestic snack market[13]. - Consumer spending is expected to be further impacted by shrinking spending, supply shocks, and weakening expectations[15]. - The Group's target market includes mid-to-high-end customers, which may be affected by weakened consumer confidence[15]. - The geopolitical tensions and policy reforms in certain industries have significantly impacted the employment rate and income of the middle class[15]. - The Group's food business is expected to face extensive impacts on sales due to the ongoing effects of the Omicron variant[15]. - Domestic consumer spending may become increasingly unstable due to shrinking expenditure and supply chain disruptions[18]. - The ongoing geopolitical tensions from the Russia-Ukraine conflict are anticipated to impact the economic landscape, although China's economy is expected to remain relatively stable[18]. Strategic Initiatives - The Group has attempted to enhance marketing efforts and adopted a flexible pricing strategy to address declining orders[13]. - The Group aims to diversify its income sources to stabilize financial performance amid market uncertainties[21][24]. - The Group maintains a cautiously optimistic view on its low-cost fast-moving consumer goods business despite weakening consumer confidence[20]. - The Group's strategic focus aligns with the government's emphasis on domestic demand and economic dual circulation[20][23]. - The Group plans to enhance its supply chain capacity and has entered into a joint venture for high-demand mobile phones and electronic components[50]. Operational Insights - The Group offered over 100 types of dried seafood, 30 types of algae and fungi, and 60 types of seafood snacks during the Reporting Period[46]. - The Group's products are sold through various channels, including supermarkets, trading companies, convenience stores, and e-commerce retailers[46]. - The Group sources high-quality raw materials and sub-contracts processing to third parties, packaging products under its own brand "Wofan"[46]. - Selling and distribution expenses decreased due to tightened cost control on promotion and advertising activities during the Year[66]. Financial Position - As of December 31, 2021, net current assets decreased to approximately RMB 334.9 million from RMB 391.7 million as of December 31, 2020, primarily due to an increase in inventories and cash equivalents[71]. - Cash and cash equivalents as of December 31, 2021, were approximately RMB 176.4 million, down from RMB 213.5 million as of December 31, 2020, with no bank borrowings reported[71]. - The gearing ratio increased to 0.059 as of December 31, 2021, compared to 0.029 as of December 31, 2020[71]. - Inventories as of December 31, 2021, amounted to approximately RMB 61.7 million, with inventory turnover days increasing to approximately 327 days from 214 days in 2020[71]. - Trade receivables as of December 31, 2021, were approximately RMB 115.6 million, with turnover days increasing to approximately 526 days from 264 days in 2020[71]. - Trade payables decreased to approximately RMB 2.5 million as of December 31, 2021, from approximately RMB 16.4 million in 2020[73]. Governance and Compliance - The Company has adopted the Corporate Governance Code as its own code of corporate governance and has complied with it, except for certain deviations[148]. - The Board currently comprises three executive Directors and three independent non-executive Directors, ensuring that independent non-executive Directors represent 50% of the Board[148]. - The Company has maintained the prescribed public float under the Listing Rules as of the date of this annual report[146]. - The Company is committed to enhancing its corporate governance practices to meet evolving regulatory requirements and shareholder expectations[152]. - The Company has received annual confirmations of independence from all Independent Non-executive Directors, ensuring compliance with Listing Rules[159]. Shareholder Information - The Company did not recommend the payment of a final dividend for the year ended December 31, 2021[76]. - No dividend has been declared or proposed for the year ended December 31, 2021[81]. - The Company has adopted a dividend policy that allows for the declaration and distribution of dividends at the Board's discretion[82]. - Shareholders holding at least one-tenth of the paid-up capital can request the Board to convene an extraordinary general meeting[191]. - The forthcoming Annual General Meeting (AGM) is scheduled for May 2021, with notices sent at least 20 business days in advance[193]. Audit and Risk Management - The audit identified key audit matters, particularly the impairment assessment on trade receivables[199]. - The financial statements were prepared in compliance with Hong Kong Financial Reporting Standards and the Hong Kong Companies Ordinance[197]. - The audit was conducted in accordance with Hong Kong Standards on Auditing, ensuring independence and ethical compliance[198]. - The Audit Committee oversees internal control and risk management procedures of the Company[178]. - An external independent consultant was engaged to assess the Group's risk management and internal control systems, with findings reported to the Audit Committee and the Board[186].