Core Viewpoint - The company reported a decline in revenue and profit for the six months ending June 30, 2025, indicating potential challenges in its financial performance [1] Financial Performance - Revenue for the period was 163 million RMB, representing a year-on-year decrease of 10.48% [1] - Shareholders' profit amounted to 4.081 million RMB, down 47.83% compared to the previous year [1] - Basic earnings per share were 0.5 cents [1]

[Condensed Consolidated Financial Statements](index=1&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=1&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For the six months ended June 30, 2025, Jiujiuwang Food International Limited's profit significantly decreased, primarily due to the combined impact of reduced gross profit, lower selling and administrative expenses, and changes in net other income Profit or Loss Summary | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 162,533 | 181,556 | | Cost of sales | (124,591) | (127,397) | | Gross profit | 37,942 | 54,159 | | Other income, gains or (losses), net | 2,228 | (2,340) | | Selling expenses | (12,316) | (15,186) | | Administrative expenses | (16,522) | (18,345) | | Finance costs | (6,354) | (6,984) | | Profit before tax | 4,978 | 11,304 | | Tax | (897) | (3,482) | | Profit for the period | 4,081 | 7,822 | | Profit for the period attributable to owners of the Company | 4,081 | 7,822 | | Earnings per share attributable to owners of the Company (RMB cents) | 0.5 | 1.0 | - Profit for the period decreased by **47.95%** year-on-year, from **RMB 7.8 million** in 2024 to **RMB 4.1 million** in 2025[4](index=4&type=chunk)[6](index=6&type=chunk) - Basic and diluted earnings per share decreased from **RMB 1.0 cent** in 2024 to **RMB 0.5 cent** in 2025[6](index=6&type=chunk) [Condensed Consolidated Statement of Financial Position](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2025, the Group's net current assets, total assets less current liabilities, and total equity all increased, reflecting a robust financial position Financial Position Summary | Indicator | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Assets** | | | | Non-current assets | 334,480 | 348,426 | | Current assets | 328,645 | 381,020 | | **Liabilities** | | | | Current liabilities | 65,299 | 199,548 | | Non-current liabilities | 196,509 | 133,060 | | **Equity** | | | | Total equity | 401,317 | 396,838 | | Net current assets | 263,346 | 181,472 | | Total assets less current liabilities | 597,826 | 529,898 | - Net current assets increased by **45.1%** from **RMB 181,472 thousand** as of December 31, 2024, to **RMB 263,346 thousand** as of June 30, 2025[7](index=7&type=chunk) - Current liabilities significantly decreased by **67.2%** from **RMB 199,548 thousand** as of December 31, 2024, to **RMB 65,299 thousand** as of June 30, 2025[7](index=7&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=4&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [1. Basis of Preparation](index=4&type=section&id=1.%20Basis%20of%20Preparation) The interim financial statements are prepared in accordance with Appendix 16 of the HKEX Listing Rules and HKAS 34, presented in RMB thousands, with accounting policies consistent with the 2024 annual financial statements, except for changes noted in Note 2 - The interim financial statements are prepared in accordance with Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 "Interim Financial Reporting"[8](index=8&type=chunk) - The statements are presented in **RMB thousands** and adopt the same accounting policies as the 2024 annual financial statements, with expected changes to be reflected in the 2025 annual financial statements[8](index=8&type=chunk)[9](index=9&type=chunk) [2. Application of Revised Hong Kong Financial Reporting Standards](index=4&type=section&id=2.%20Application%20of%20Revised%20Hong%20Kong%20Financial%20Reporting%20Standards) This interim period saw the first-time application of revised HKFRSs issued by the HKICPA, including HKAS 21 (Amendment) "Lack of Exchangeability", which had no material impact on the Group's financial position or performance - This interim period saw the first-time application of revised Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, including HKAS 21 (Amendment) "Lack of Exchangeability"[10](index=10&type=chunk) - The application of these new standards had no material impact on the Group's financial position or performance[10](index=10&type=chunk) [3. Operating Segments](index=5&type=section&id=3.%20Operating%20Segments) The Group primarily operates a single segment, the sale of confectionery products, with all operations and non-current assets located in China, and despite a decline in total revenue, revenue from Asia excluding China increased - The Group currently operates a single operating segment, revenue from the sale of confectionery products, and therefore has no separately reportable segments[11](index=11&type=chunk) - The Group's operations and non-current assets are all located in China[12](index=12&type=chunk) Revenue by Geographical Region | Region | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | China | 148,058 | 160,805 | | Asia (excluding China) | 6,622 | 6,310 | | Europe | 5,289 | 10,609 | | Others | 2,564 | 3,832 | | **Total** | **162,533** | **181,556** | - Revenue from a single major customer A increased by **26.4%** to **RMB 42,984 thousand** in the first half of 2025, with its proportion of total sales rising from **16.1%** to **26.4%**[15](index=15&type=chunk) [4. Revenue](index=6&type=section&id=4.%20Revenue) The Group's total revenue decreased by **10.5%** year-on-year, primarily due to reduced sales of own-brand products, which was not offset by increased OEM product sales Revenue by Product Type | Product Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | OEM products | 65,232 | 57,318 | | Own-brand products - KUSA | 89,477 | 109,662 | | Own-brand products - LABULA | 6,325 | 11,837 | | Own-brand products - JIUJIUWANG | 1,499 | 2,739 | | **Total Revenue** | **162,533** | **181,556** | - Total revenue decreased by **10.5%** from **RMB 181,556 thousand** in 2024 to **RMB 162,533 thousand** in 2025[16](index=16&type=chunk) - OEM product revenue increased by **13.8%** year-on-year, while own-brand product (KUSA, LABULA, JIUJIUWANG) revenues all decreased[16](index=16&type=chunk) [5. Other Income, Gains or (Losses), Net](index=7&type=section&id=5.%20Other%20Income,%20Gains%20or%20(Losses),%20Net) Net other income, gains or (losses) for the period shifted from a net loss in 2024 to a net gain in 2025, mainly driven by reduced losses from sale and leaseback transactions and a reversal of expected credit losses on trade receivables Other Income, Gains or (Losses), Net | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank interest income | 126 | 123 | | Exchange gains | 102 | 443 | | Rental income | 414 | 63 | | Government grants | 232 | 86 | | Reversal of expected credit losses on trade receivables | 1,354 | – | | Loss from sale and leaseback transactions | – | (3,055) | | **Total** | **2,228** | **(2,340)** | - Net other income, gains or (losses) shifted from **RMB (2,340) thousand** in 2024 to **RMB 2,228 thousand** in 2025, primarily due to reduced losses from sale and leaseback transactions and a reversal of expected credit losses on trade receivables[17](index=17&type=chunk) [6. Finance Costs](index=7&type=section&id=6.%20Finance%20Costs) The Group's finance costs remained relatively stable during the reporting period, showing a slight decrease, primarily comprising interest expenses on bank borrowings and lease liabilities Finance Costs | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Interest expense on bank borrowings | 5,134 | 5,763 | | Interest expense on lease liabilities | 1,220 | 1,221 | | **Total** | **6,354** | **6,984** | - Finance costs decreased by **9.02%** from **RMB 6,984 thousand** in 2024 to **RMB 6,354 thousand** in 2025[18](index=18&type=chunk) [7. Profit Before Tax](index=7&type=section&id=7.%20Profit%20Before%20Tax) Profit before tax significantly decreased, primarily due to the combined impact of inventory costs, depreciation of property, plant and equipment, depreciation of right-of-use assets, and employee benefit expenses Profit Before Tax Components | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Inventory costs recognized as expenses | 117,779 | 126,170 | | Depreciation of property, plant and equipment | 10,443 | 8,524 | | Depreciation of right-of-use assets | 3,501 | 1,334 | | Employee benefit expenses (including directors' emoluments) | 12,510 | 18,557 | - Profit before tax decreased by **55.96%** from **RMB 11,304 thousand** in 2024 to **RMB 4,978 thousand** in 2025[4](index=4&type=chunk) [8. Tax](index=8&type=section&id=8.%20Tax) The Group's tax expense significantly decreased, mainly due to lower taxable profit, with Chinese subsidiaries subject to a 25% corporate income tax rate and no provision for taxable profit in Hong Kong Tax Expense | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | China corporate income tax | 897 | 3,482 | - Tax expense decreased by **74.2%** from **RMB 3,482 thousand** in 2024 to **RMB 897 thousand** in 2025[21](index=21&type=chunk) - Chinese subsidiaries are subject to a corporate income tax rate of **25%**, while no provision for profits tax was made in Hong Kong due to no estimated taxable profit[21](index=21&type=chunk)[22](index=22&type=chunk) [9. Dividends](index=8&type=section&id=9.%20Dividends) The Board of Directors decided not to declare any dividends for the six months ended June 30, 2025, consistent with the same period in 2024 - The Board of Directors does not recommend the payment of any dividend for the six months ended June 30, 2025 (2024: nil)[24](index=24&type=chunk) [10. Earnings Per Share Attributable to Owners of the Company](index=9&type=section&id=10.%20Earnings%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Both basic and diluted earnings per share attributable to owners of the Company were **RMB 0.5 cent**, a decrease from the prior year, with basic and diluted earnings being identical due to the absence of potential dilutive ordinary shares Earnings Per Share Calculation Data | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit | 4,081 | 7,822 | | Weighted average number of ordinary shares (thousand shares) | 792,000 | 792,000 | | Basic and diluted earnings per share (RMB cents) | 0.5 | 1.0 | - Diluted earnings per share are the same as basic earnings per share due to the absence of potential dilutive ordinary shares[27](index=27&type=chunk) [11. Property, Plant and Equipment](index=9&type=section&id=11.%20Property,%20Plant%20and%20Equipment) As of June 30, 2025, the Group's property, plant and equipment carrying value slightly decreased, with some assets pledged as collateral for bank credit facilities, and no new acquisitions during the period - As of June 30, 2025, buildings and plant and machinery with a carrying value of approximately **RMB 137,653 thousand** were pledged as collateral for the Group's bank credit facilities (December 31, 2024: **RMB 143,905 thousand**)[28](index=28&type=chunk) - For the six months ended June 30, 2025, the Group did not incur any payments for the acquisition of property, plant and equipment (2024: **RMB 389 thousand**)[28](index=28&type=chunk) [12. Trade Receivables](index=9&type=section&id=12.%20Trade%20Receivables) The Group's trade receivables significantly increased, primarily concentrated within 30 days, while the provision for expected credit losses decreased, reflecting changes in accounts receivable management and collection Trade Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Trade receivables | 116,534 | 77,440 | | Less: Provision for expected credit losses | (8,854) | (10,208) | | **Net** | **107,680** | **67,232** | - Net trade receivables increased by **60.17%** from **RMB 67,232 thousand** as of December 31, 2024, to **RMB 107,680 thousand** as of June 30, 2025[29](index=29&type=chunk) Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 47,721 | 10,443 | | 31 to 60 days | 15,577 | 11,882 | | 61 to 90 days | 14,830 | 8,048 | | 91 to 180 days | 17,103 | 31,552 | | 181 to 365 days | 12,449 | 5,307 | | **Total** | **107,680** | **67,232** | - The net provision for expected credit losses saw a reversal of **RMB 1,354 thousand** in the first half of 2025, reducing the year-end provision balance to **RMB 8,854 thousand**[31](index=31&type=chunk) [13. Prepayments and Other Receivables](index=11&type=section&id=13.%20Prepayments%20and%20Other%20Receivables) Total prepayments and other receivables significantly decreased, primarily due to a substantial reduction in prepayments for raw material purchases Prepayments and Other Receivables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Prepayments | 60,681 | 122,641 | | Other receivables | 4,674 | 5,327 | | **Total** | **65,355** | **127,968** | - Total prepayments decreased by **50.5%** from **RMB 122,641 thousand** as of December 31, 2024, to **RMB 60,681 thousand** as of June 30, 2025[32](index=32&type=chunk) [14. Trade and Other Payables](index=11&type=section&id=14.%20Trade%20and%20Other%20Payables) Total trade and other payables significantly decreased, primarily due to a substantial reduction in amounts payable to a director Trade and Other Payables | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total trade payables | 1,511 | 3,637 | | Accrued expenses and other payables | 6,868 | 3,984 | | Amount due to a director | 4,865 | 40,866 | | **Total** | **13,244** | **48,487** | - Total trade and other payables decreased by **72.7%** from **RMB 48,487 thousand** as of December 31, 2024, to **RMB 13,244 thousand** as of June 30, 2025[34](index=34&type=chunk) - Amount due to a director significantly decreased from **RMB 40,866 thousand** to **RMB 4,865 thousand**[34](index=34&type=chunk) [15. Share Capital](index=12&type=section&id=15.%20Share%20Capital) The Company's share capital structure remained stable during the reporting period, with no changes in authorized share capital or issued and fully paid share capital Share Capital Structure | Item | June 30, 2025 (thousand shares/thousand USD) | December 31, 2024 (thousand shares/thousand USD) | | :--- | :--- | :--- | | Authorized share capital (number of shares) | 2,000,000 | 2,000,000 | | Authorized share capital (USD) | 200 | 200 | | Issued and fully paid share capital (number of shares) | 792,000 | 792,000 | | Issued and fully paid share capital (USD) | 80 | 80 | | Presented in condensed consolidated statement of financial position (RMB thousands) | 532 | 532 | - As of June 30, 2025, the Company's share capital structure showed no significant changes, with **792,000 thousand** issued shares, amounting to **RMB 532 thousand**[35](index=35&type=chunk) [16. Pledged Assets](index=12&type=section&id=16.%20Pledged%20Assets) A portion of the Group's assets, including buildings, plant and machinery, and right-of-use assets, has been pledged to banks as collateral for borrowings, with the total pledged value slightly decreasing Carrying Value of Pledged Assets | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Buildings | 102,594 | 104,773 | | Plant and machinery | 35,059 | 39,132 | | Right-of-use assets | 20,802 | 21,094 | | **Total** | **158,455** | **164,999** | - The total carrying value of pledged assets decreased from **RMB 164,999 thousand** as of December 31, 2024, to **RMB 158,455 thousand** as of June 30, 2025[37](index=37&type=chunk) [17. Significant Related Party Transactions](index=13&type=section&id=17.%20Significant%20Related%20Party%20Transactions) Key management personnel remuneration slightly increased, while the amount payable to a director significantly decreased, with this amount being unsecured, interest-free, and repayable on demand Key Management Personnel Remuneration | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, allowances and benefits in kind | 1,290 | 1,260 | | Retirement scheme contributions | 85 | 38 | | **Total** | **1,375** | **1,298** | - The amount due to a director (Mr Zheng Zhenzhong) decreased from **RMB 40,866 thousand** as of December 31, 2024, to **RMB 4,865 thousand** as of June 30, 2025[38](index=38&type=chunk) - The amount due to a director is unsecured, interest-free, and repayable on demand[38](index=38&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=14&type=section&id=Business%20Review%20and%20Outlook) Jiujiuwang Food International Limited, a Chinese confectionery manufacturer, primarily produces and sells gum-based candies, pressed candies, aerated candies, and hard candies, with profit declining in the reporting period due to reduced gross profit, lower selling and administrative expenses, and changes in net other income - The Group is a confectionery manufacturer in China, producing and selling gum-based candies, pressed candies, aerated candies, and hard candies[39](index=39&type=chunk) - Group profit decreased from **RMB 7.8 million** in 2024 to **RMB 4.1 million** in 2025, primarily due to the net effect of reduced gross profit (lower own-brand product sales), changes in net other income, decreased selling expenses, and decreased administrative expenses[40](index=40&type=chunk) [Financial Review](index=14&type=section&id=Financial%20Review) The Group experienced a decline in both revenue and gross profit during the reporting period, mainly due to reduced sales of own-brand products, indicating overall profitability pressure despite controlled selling and administrative expenses - Revenue decreased by **10.5%** year-on-year to **RMB 162.5 million**, primarily due to reduced sales of own-brand products[41](index=41&type=chunk) - Gross profit decreased by **30.1%** year-on-year to **RMB 37.9 million**, with gross profit margin declining from **29.8%** to **23.3%**, mainly due to lower sales volume of own-brand products (which typically have higher gross margins than OEM products)[43](index=43&type=chunk) - Net other income and gains shifted from a net loss of **RMB 2.3 million** in 2024 to a net gain of **RMB 2.2 million** in 2025, primarily due to reduced losses from sale and leaseback transactions[44](index=44&type=chunk) - Selling expenses decreased by **19.1%** to **RMB 12.3 million**, mainly due to reduced marketing and promotion expenses[45](index=45&type=chunk) - Administrative expenses decreased by **11.5%** to **RMB 16.2 million**, primarily due to reduced travel expenses[46](index=46&type=chunk) - Income tax expense decreased to **RMB 0.9 million**, mainly due to lower taxable profit[47](index=47&type=chunk) - Finance costs remained stable at approximately **RMB 6.7 million**[48](index=48&type=chunk) - Profit for the period was **RMB 4.1 million**, a decrease from **RMB 7.8 million** in the same period last year[49](index=49&type=chunk) [Principal Risks and Uncertainties](index=16&type=section&id=Principal%20Risks%20and%20Uncertainties) The Group faces several key risks, including reliance on a few OEM customers, performance of third-party distributors, lack of long-term contracts, raw material price volatility, pandemic impacts, and risks of foodborne illness and product liability claims - A significant portion of revenue is derived from a few major OEM customers, posing customer concentration risk[50](index=50&type=chunk) - Reliance on third-party distributors for own-brand product sales means termination or non-renewal of distribution agreements could lead to a substantial decrease in sales[50](index=50&type=chunk) - The Group generally does not enter into long-term contracts or contracts specifying minimum purchase amounts with customers[50](index=50&type=chunk) - Fluctuations in raw material prices, availability, and quality could lead to production delays and increased cost of sales[54](index=54&type=chunk) - The business is susceptible to foodborne illness claims and product liability claims, posing potential reputational risks[54](index=54&type=chunk) [Future Plans for Material Investments and Capital Assets](index=17&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) As of June 30, 2025, the Group had no other material investment and capital asset plans - As of June 30, 2025, the Group had no other material investment and capital asset plans[51](index=51&type=chunk) [Liquidity and Financial Resources](index=17&type=section&id=Liquidity%20and%20Financial%20Resources) The Group's capital structure remained stable, with a decrease in cash and cash equivalents, but a significant reduction in the gearing ratio due to decreased bank borrowings and lease liabilities, indicating improved financial leverage. The Group continuously monitors credit risk and faces no significant foreign exchange risk - The Company's capital structure showed no significant changes during the reporting period[52](index=52&type=chunk) - Cash and cash equivalents decreased by approximately **8.7%** to **RMB 21.3 million**, primarily due to repayment of bank borrowings[53](index=53&type=chunk) - Total borrowings decreased to **RMB 225.8 million** (December 31, 2024: **RMB 255.2 million**)[54](index=54&type=chunk) - The gearing ratio decreased to approximately **60.8%** (December 31, 2024: approximately **70.2%**), mainly due to reduced bank borrowings and lease liabilities[57](index=57&type=chunk) - Pledged assets include right-of-use assets, buildings, and plant and machinery, with a total carrying value of **RMB 158,455 thousand**[56](index=56&type=chunk) - The Board of Directors does not recommend the declaration of dividends[58](index=58&type=chunk) - The Group has no material capital commitments, material acquisitions or disposals of subsidiaries, material investments, or contingent liabilities[60](index=60&type=chunk)[61](index=61&type=chunk)[62](index=62&type=chunk)[63](index=63&type=chunk) - The Group does not face significant exchange rate fluctuation risks and holds no foreign exchange contracts or other financial derivative instruments[64](index=64&type=chunk) - Credit risk primarily arises from trade receivables, other receivables, and cash and cash equivalents, managed through credit limits, monitoring procedures, and expected credit loss models[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) [Employees and Remuneration Policies](index=20&type=section&id=Employees%20and%20Remuneration%20Policies) The Group's employee count slightly decreased, with remuneration policies based on market terms, individual performance, qualifications, and experience. The Group prioritizes employee training and maintains good working relationships - As of June 30, 2025, the Group had **385 employees** (December 31, 2024: **386 employees**)[70](index=70&type=chunk) - Employee remuneration is determined with reference to market terms and based on individual performance, qualifications, and experience; directors' remuneration is reviewed and determined by the Remuneration Committee[70](index=70&type=chunk) - The Group has adopted a share option scheme to incentivize employees, directors, and other participants[70](index=70&type=chunk) - The Group provides various training to employees, including internal professional development seminars and safety training programs[71](index=71&type=chunk) [Litigation](index=21&type=section&id=Litigation) As of June 30, 2025, the Group was not involved in any material litigation or arbitration - As of June 30, 2025, the Group was not involved in any material litigation or arbitration, nor were there any outstanding or threatened material litigations or claims[72](index=72&type=chunk) [Prospects](index=21&type=section&id=Prospects) The Group aims to achieve sustainable growth and strengthen its position as a Chinese confectionery manufacturer through capacity expansion, production line machinery replacement, enhanced e-commerce marketing and distribution networks, and continuous product development - The business objective is to achieve sustainable growth and consolidate its position as a confectionery manufacturer in China[73](index=73&type=chunk) - Planned strategies include: (i) capacity expansion; (ii) replacement of existing production line machinery; (iii) strengthening marketing and increasing sales through e-commerce channels, expanding the distribution network; and (iv) expanding and enhancing product offerings through continuous product development[73](index=73&type=chunk) - Emphasis will be placed on procuring and introducing new production lines, acquiring new equipment and machinery to replace existing ones, and striving to enhance product quality to meet consumer preferences[74](index=74&type=chunk) - Marketing companies will be engaged to promote brands, consolidate market position, enhance brand awareness, and increase sales and improve the distribution network through e-commerce channels[75](index=75&type=chunk) [Corporate Governance and Other Information](index=22&type=section&id=Corporate%20Governance%20and%20Other%20Information) [Corporate Governance Practices](index=22&type=section&id=Corporate%20Governance%20Practices) The Company is committed to maintaining high corporate governance standards and complies with the Corporate Governance Code in Appendix 14 of the Listing Rules, with the exception of the Chairman and Chief Executive Officer being the same person, which deviates from Code Provision A.2.1 - The Company has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix 14 of the Listing Rules during the period[77](index=77&type=chunk) - Mr Zheng Zhenzhong serves as both Chairman and Chief Executive Officer, deviating from Code Provision A.2.1 of the Corporate Governance Code, but the Board believes this arrangement is in the Group's best interest and has sufficient safeguards to ensure a balance of power[78](index=78&type=chunk) [Directors' Securities Transactions](index=22&type=section&id=Directors'%20Securities%20Transactions) The Company has adopted a code of conduct for directors' securities transactions no less exacting than that set out in Appendix 10 of the Listing Rules, and all directors confirmed compliance during the reporting period - The Company has adopted a code of conduct regarding directors' securities transactions, with terms no less exacting than the required standard of dealings set out in Appendix 10 of the Listing Rules[79](index=79&type=chunk) - All directors have confirmed compliance with the required standard of dealings and the Company's code of conduct throughout the review period[79](index=79&type=chunk) [Disclosure of Directors' Information Pursuant to Rule 13.51B(1) of the Listing Rules](index=23&type=section&id=Disclosure%20of%20Directors'%20Information%20Pursuant%20to%20Rule%2013.51B(1)%20of%20the%20Listing%20Rules) For the six months ended June 30, 2025, no changes in directors' information required disclosure under Rule 13.51B(1) of the Listing Rules - For the six months ended June 30, 2025, no changes in directors' information required disclosure under Rule 13.51B(1) of the Listing Rules[80](index=80&type=chunk) [Competing Business](index=23&type=section&id=Competing%20Business) The directors are unaware of any business or interest owned by any director, controlling shareholder, or their close associates that competes or may compete with the Group's business during the reporting period - The directors are unaware of any business or interest owned by any director, controlling shareholder, or their respective close associates that competes or may compete with the Group's business during the reporting period[81](index=81&type=chunk) [Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=23&type=section&id=Directors'%20and%20Chief%20Executive's%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) As of June 30, 2025, Mr Zheng Guosi and Mr Zheng Zhenzhong each held a **72.75%** equity interest in the Company's ordinary shares, primarily through controlled corporations and parties acting in concert. They also held **100%** beneficial ownership in associated corporations Directors' and Chief Executive's Interests in the Company's Shares | Director Name | Capacity | Number of Ordinary Shares | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr Zheng Guosi | Interest in controlled corporation; interest held jointly with other persons | 576,179,908 | 72.75% | | Mr Zheng Zhenzhong | Interest in controlled corporation; interest held jointly with other persons | 576,179,908 | 72.75% | - Mr Zheng Guosi beneficially owns **25.46%** of the shares through Xiejia Limited, and Mr Zheng Zhenzhong beneficially owns **21.82%** of the shares through Jianeng International Limited[84](index=84&type=chunk) - Mr Zheng Zhenzhong, Mr Zheng Guosi, and Mr Zheng Guodian are parties acting in concert and are therefore deemed to have an interest in the shares held by each other[84](index=84&type=chunk) Directors' Long Positions in Shares of Associated Corporations | Director Name | Name of Associated Corporation | Capacity | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr Zheng Guodian | Haisen International Limited | Beneficial owner | 100% | | Mr Zheng Guosi | Xiejia Limited | Beneficial owner | 100% | | Mr Zheng Zhenzhong | Jianeng International Limited | Beneficial owner | 100% | [Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares, Underlying Shares and Debentures of the Company](index=26&type=section&id=Substantial%20Shareholders'%20and%20Other%20Persons'%20Interests%20and%20Short%20Positions%20in%20Shares,%20Underlying%20Shares%20and%20Debentures%20of%20the%20Company) As of June 30, 2025, Xiejia, Haisen, and Jianeng, as beneficial owners, along with Ms Wu Zihong, Mr Zheng Guodian, Ms Hong Mali, and Ms Su Li, as spouses' interests or interests in controlled corporations, all held significant long positions in the Company's shares Substantial Shareholders' and Other Persons' Long Positions in the Company's Shares | Shareholder Name/Entity | Capacity | Number of Ordinary Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Xiejia | Beneficial owner | 201,662,968 | 25.46% | | Ms Wu Zihong | Spouse's interest | 576,179,908 | 72.75% | | Haisen | Beneficial owner | 201,662,968 | 25.46% | | Mr Zheng Guodian | Interest in controlled corporation; interest held jointly with other persons | 576,179,908 | 72.75% | | Ms Hong Mali | Spouse's interest | 576,179,908 | 72.75% | | Jianeng | Beneficial owner | 172,853,972 | 21.82% | | Ms Su Li | Spouse's interest | 576,179,908 | 72.75% | - Ms Wu Zihong is the spouse of Mr Zheng Guosi, Ms Hong Mali is the spouse of Mr Zheng Guodian, and Ms Su Li is the spouse of Mr Zheng Zhenzhong; they are deemed to have an interest in the shares owned by their respective spouses under the Securities and Futures Ordinance[86](index=86&type=chunk)[91](index=91&type=chunk) - Mr Zheng Guodian beneficially owns **25.46%** of the shares through Haisen International Limited[86](index=86&type=chunk) [Share Option Scheme](index=27&type=section&id=Share%20Option%20Scheme) The Company adopted a share option scheme on February 18, 2021, to incentivize eligible participants and provide equity opportunities. As of June 30, 2025, no share options were granted, exercised, cancelled, or lapsed, and the scheme limit is **10%** of the issued shares - The share option scheme was adopted on February 18, 2021, to incentivize eligible participants and provide opportunities to own equity in the Company[88](index=88&type=chunk)[89](index=89&type=chunk) - Eligible participants include employees, executives, officers, directors, consultants, suppliers, customers, agents, and other individuals who have contributed to the Group[90](index=90&type=chunk)[94](index=94&type=chunk) - The scheme limit is **10%** of the total issued shares on the listing date, which is **79,200,000 shares**, and all unexercised share options shall not exceed **30%** of the issued shares from time to time[93](index=93&type=chunk)[96](index=96&type=chunk) - For the six months ended June 30, 2025, no share options were granted, exercised, cancelled, or lapsed under the share option scheme[88](index=88&type=chunk)[97](index=97&type=chunk) - Share options are exercisable within **10 years** from the date of grant and acceptance, with the subscription price not lower than the highest of the closing price on the grant date, the average closing price for the five business days immediately preceding the grant date, and the nominal value of the shares[99](index=99&type=chunk)[103](index=103&type=chunk)[106](index=106&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=31&type=section&id=Purchase,%20Sale%20or%20Redemption%20of%20the%20Company's%20Listed%20Securities) For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's ordinary shares - For the six months ended June 30, 2025, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's ordinary shares[104](index=104&type=chunk) [Events After Reporting Period](index=31&type=section&id=Events%20After%20Reporting%20Period) No significant events affecting the Group occurred after June 30, 2025, and up to the date of this announcement - No significant events affecting the Group occurred after June 30, 2025, and up to the date of this announcement[105](index=105&type=chunk) [Standard Code for Directors' Securities Transactions](index=32&type=section&id=Standard%20Code%20for%20Directors'%20Securities%20Transactions) The Group has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules as its code of conduct for directors' securities transactions, and all directors confirmed compliance during the reporting period - The Group has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules as its code of conduct for directors' securities transactions in shares[107](index=107&type=chunk) - Following specific enquiries with all directors, all directors have confirmed their compliance with the said code throughout the six months ended June 30, 2025[107](index=107&type=chunk) [Audit Committee](index=32&type=section&id=Audit%20Committee) The Company's Audit Committee, comprising 4 independent non-executive directors, has reviewed the Group's accounting principles, internal controls, financial reporting matters, and unaudited consolidated financial statements, deeming them compliant with applicable accounting standards and Listing Rules - The Audit Committee comprises 4 independent non-executive directors: Mr Wu Shiming, Mr Wang Linan, Mr Chen Congming, and Ms Liu Xuefeng[108](index=108&type=chunk) - The Audit Committee has reviewed the accounting principles and policies adopted by the Group, discussed internal controls and financial reporting matters, and the unaudited condensed consolidated financial statements for the six months ended June 30, 2025[108](index=108&type=chunk) - The Audit Committee believes that the relevant financial statements comply with applicable accounting standards and the Listing Rules and have made appropriate disclosures[108](index=108&type=chunk)

Core Viewpoint - The company, Jiujiawang (01927.HK), has announced that its board meeting will be held on August 29, 2025, to consider and approve the interim results for the six months ending June 30, 2025, and to discuss the proposal for an interim dividend, if any [1] Group 1 - The board meeting is scheduled for August 29, 2025 [1] - The meeting will focus on the interim performance for the six months ending June 30, 2025 [1] - The board will also consider the proposal for an interim dividend [1]

香 港 交 易 及 結 算 所 有 限 公 司 及 香 港 聯 合 交 易 所 有 限 公 司 對 本 公 告 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告全部或 任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責任。 Jiujiuwang Food International Limited 久 久 王 食 品 國 際 有 限 公 司 （於開曼群島註冊成立的有限公司） （股份代號：1927） 主席及執行董事 鄭振忠 中國福建，2025年8月6日 於本公告日期，董事會包括執行董事鄭振忠先生、鄭國思先生及陳侃先生；及獨 立非執行董事王禮南先生、吳世明先生、陳聰明先生及劉雪峰女士。 董事會會議通告 久久王食品国际有限公司（「本公司」）董事（「董事」）會（「董事會」）謹此宣佈，董事 會會議將於2025年8月29日（ 星期五 ）召開，藉以（ 其中包括 ）考慮及批准本公司及 其 附屬 公司 截 至2025 年 6 月 30 日止 六 個月 期間 之中 期 業績 ，及 考 慮建 議派 付 中期 股息（ 如有 ）。 承董事會命 久久王食品国际有限公司 ...

Company Overview - Jiujiuwang Food International Co., Ltd. was established in 1999 in China and is a manufacturer of confectionery products, including gelatin-based candies, tablet candies, puffed candies, and hard candies [2] - The company sources raw materials from suppliers and produces and packages confectionery products in its internal facilities, selling products under its own brands (Kusha, Lalab, and Jiujiuwang) through e-commerce channels and to distributors in China and overseas [2] - As of August 31, 2020, the company had 129 distributors, covering a wide sales network across one municipality, two autonomous regions, and 21 provinces in China [2] Production Capacity - The company operates a factory in Jinjiang, Fujian Province, with an area of approximately 117,589 square meters and 32 production lines, with an annual production capacity of about 15,045.4 tons [3] - The company emphasizes direct control over product quality, production costs, and production schedules through its own manufacturing facilities [3] - The company has over 20 years of experience in producing high-quality confectionery products and continuously develops new products and modifies existing ones to meet changing consumer preferences [3] Market Position - According to Frost & Sullivan, the company ranked second in the overall confectionery market in Fujian Province by revenue, holding approximately 2.7% market share in 2019, and about 0.7% market share in the overall Chinese market [2]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported revenue of RMB 315,028,000, a decrease of 10.5% compared to RMB 351,767,000 in 2023[11]. - The company recorded a loss attributable to owners of the company of RMB 3,122,000 for 2024, compared to a profit of RMB 4,694,000 in 2023, indicating a significant decline in profitability[11]. - The company's revenue decreased by approximately 10.5% from RMB 351.8 million for the year ended December 31, 2023, to approximately RMB 315.0 million for the year ending December 31, 2024, primarily due to a decline in OEM product sales[15]. - Gross profit for the year ending December 31, 2024, was approximately RMB 87.4 million, a decrease of about 12.2% from approximately RMB 99.5 million for the year ended December 31, 2023, with gross margins remaining relatively stable at 27.7% and 28.3% respectively[17]. - The company recorded a net loss of approximately RMB 3.6 million for the year ending December 31, 2024, compared to a profit of approximately RMB 4.9 million for the year ended December 31, 2023, primarily due to an increase in expected credit loss provisions[23]. - Basic and diluted loss per share for 2024 was RMB (0.5), compared to earnings of RMB 0.6 per share in 2023[193]. - The company reported a pre-tax profit of RMB 1,495 thousand in 2024, down from RMB 11,064 thousand in 2023, a decline of about 86.5%[200]. Assets and Liabilities - Total assets increased to RMB 729,446,000 in 2024 from RMB 707,873,000 in 2023, reflecting a growth of approximately 3.0%[12]. - Current liabilities rose to RMB 199,548,000 in 2024, up from RMB 164,195,000 in 2023, representing an increase of about 21.5%[12]. - The company experienced an increase in non-current liabilities, which amounted to RMB 133,060,000 in 2024, compared to RMB 143,718,000 in 2023, showing a decrease of approximately 7.4%[12]. - As of December 31, 2024, the total borrowings of the group amounted to approximately RMB 254.7 million, a slight decrease from RMB 256.1 million as of December 31, 2023[31]. - The group's debt-to-equity ratio remained relatively stable at approximately 70.2% as of December 31, 2024, compared to 68.6% as of December 31, 2023[35]. - Total equity decreased from RMB 399,960 thousand in 2023 to RMB 396,838 thousand in 2024, a decline of approximately 0.5%[198]. Expenses and Income - The cost of sales decreased by about 9.8%, from approximately RMB 252.3 million for the year ended December 31, 2023, to approximately RMB 227.7 million for the year ending December 31, 2024, aligning with the revenue decline[16]. - Other income shifted from a net loss of approximately RMB 4.7 million for the year ended December 31, 2023, to a net income of approximately RMB 0.9 million for the year ending December 31, 2024, mainly due to a reduction in losses from sale-leaseback transactions[18]. - Selling expenses decreased from approximately RMB 34.8 million for the year ended December 31, 2023, to approximately RMB 31.4 million for the year ending December 31, 2024, primarily due to reduced marketing and promotional expenses[19]. - Administrative expenses decreased from approximately RMB 34.6 million for the year ended December 31, 2023, to approximately RMB 32.9 million for the year ending December 31, 2024, mainly due to a reduction in R&D expenses[20]. - The financing costs for 2024 were RMB 13,829 thousand, slightly up from RMB 13,587 thousand in 2023[193]. Market Strategy and Operations - The company aims to strengthen its existing business and provide stable returns and growth prospects for shareholders in the future[8]. - The company continues to focus on the production and sale of confectionery products, including gummy candies, tablet candies, and hard candies[13]. - The company is committed to expanding its market presence both domestically and internationally through its own brands and OEM partnerships[7]. - The company aims to strengthen its market position in China and expand into new markets with significant growth potential through enhanced marketing and product development strategies[14]. Corporate Governance - The company has adopted a corporate governance code that emphasizes transparency and accountability, aligning with the Stock Exchange's listing rules[70]. - The board believes it has complied with the corporate governance code for the year ending December 31, 2024, with the exception of a deviation regarding the separation of the roles of chairman and CEO[71]. - The company has established a code of conduct for directors' securities trading, which is stricter than the listing rules, and all directors have complied with these standards during the review period[72]. - The board consists of three executive directors and four independent non-executive directors, ensuring a balanced governance structure[73]. - The company has a structured approach to corporate governance, aiming to create value for shareholders and maximize returns[70]. - The board has a responsibility to prepare financial statements that fairly reflect the group's affairs, with no significant uncertainties affecting the company's ability to continue as a going concern as of December 31, 2024[100]. Human Resources and Management - The group employed 386 staff as of December 31, 2024, a decrease from 406 staff as of December 31, 2023[36]. - The company has a strong management team with members holding significant experience in finance and operations, ensuring effective decision-making[61]. - The company has a dedicated human resources director with over 24 years of experience in HR and administrative management[68]. - The technology and quality director has over 34 years of experience in the food and confectionery industry, overseeing new product development and quality control[67]. Shareholder Information - The board does not recommend any dividend payment for the year ending December 31, 2024, consistent with the previous year[51]. - The company has no fixed dividend policy, and any future dividends will depend on the group's operating performance, available cash flow, and financial condition[97]. - The company has maintained a public float of at least 25% of its total issued share capital since its listing date[162]. - The company has no knowledge of any tax relief or exemptions provided to shareholders for holding its securities[135].

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was approximately RMB 315,028,000, a decrease of 10.4% compared to RMB 351,767,000 in 2023[2] - Gross profit for the same period was approximately RMB 87,383,000, down 12.2% from RMB 99,513,000 in 2023[2] - The company reported a loss attributable to shareholders of approximately RMB 3,623,000, a decline of 173.6% from a profit of RMB 4,920,000 in 2023[2] - Basic and diluted loss per share for the fiscal year was RMB 0.5, compared to earnings of RMB 0.6 per share in 2023[2] - Total revenue for 2024 was CNY 315,028,000, down 10.5% from CNY 351,767,000 in 2023[19] - The group's net loss for the year ending December 31, 2024, was approximately RMB 3.6 million, compared to a profit of approximately RMB 4.9 million for the year ending December 31, 2023, mainly due to increased provisions for expected credit losses on trade and other receivables[51] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 529,898,000, a decrease from RMB 543,678,000 in 2023[5] - Current assets increased to RMB 381,020,000 in 2024 from RMB 363,335,000 in 2023, representing a growth of approximately 4.5%[5] - Cash and cash equivalents decreased to RMB 28,993,000 in 2024 from RMB 35,064,000 in 2023, a decline of about 17.5%[5] - Total liabilities increased to RMB 199,548,000 in 2024 from RMB 164,195,000 in 2023, reflecting a rise of approximately 21.5%[5] - The company's asset-liability ratio was approximately 70.2% as of December 31, 2024, compared to 68.6% as of December 31, 2023[62] Revenue Breakdown - Revenue from China for the year 2024 was CNY 283,836,000, a decrease of 6.2% compared to CNY 302,814,000 in 2023[19] - Revenue from Asia (excluding China) for 2024 was CNY 12,237,000, down 37.5% from CNY 19,439,000 in 2023[19] - Revenue from Europe for 2024 was CNY 17,315,000, a decline of 25.0% compared to CNY 23,101,000 in 2023[19] Dividends and Shareholder Returns - The board of directors has resolved not to declare any final dividend for the fiscal year ending December 31, 2024[3] - The company does not recommend any dividend payment for the year ending December 31, 2024, consistent with 2023[32] - The board does not recommend any dividend payment for the year ending December 31, 2024, consistent with 2023[76] Operational Insights - The company is primarily engaged in the manufacturing and sale of confectionery products, including candies and chocolates[6] - The company operates a single business segment, generating revenue from the sale of confectionery products[17] - The company aims to enhance product quality and expand its production capabilities by investing in new production lines and equipment[41] - The company operates production facilities in Fujian Province, Jinjiang City, which allows for direct control over product quality and production costs[39] Expenses and Costs - Other income, including bank interest income, was RMB 32,168 thousand in 2024, compared to RMB 28 thousand in 2023, indicating a significant increase[26] - Financing costs totaled RMB 13,829 thousand in 2024, slightly up from RMB 13,587 thousand in 2023[27] - Research and development expenses were RMB 9,370 thousand in 2024, down from RMB 11,094 thousand in 2023, showing a reduction in investment[28] - Selling expenses decreased from approximately RMB 34.8 million for the year ending December 31, 2023, to approximately RMB 31.4 million for the year ending December 31, 2024, mainly due to reduced marketing and promotional expenses[47] - Administrative expenses decreased from approximately RMB 34.6 million for the year ending December 31, 2023, to approximately RMB 32.9 million for the year ending December 31, 2024, primarily due to a reduction in research and development expenses[48] Risk Management - The group faces significant risks including potential economic impacts from COVID-19, reliance on a few major OEM customers, and fluctuations in raw material prices which could affect production and sales costs[54] - The company plans to maintain a flexible business strategy to address risks and uncertainties[56] - The company is closely monitoring business trends to identify favorable entrepreneurial environments[58] Governance and Compliance - The group has maintained compliance with corporate governance standards, ensuring shareholder rights and enhancing corporate value[77] - The audit committee, consisting of four independent non-executive directors, has reviewed the annual performance and financial statements for the year ending December 31, 2024[82] - The annual performance announcement has been published on the Hong Kong Stock Exchange website and the company's website[84] Employee and Operational Metrics - The company had 386 employees as of December 31, 2024, down from 406 employees as of December 31, 2022[63] - The company did not have any significant acquisitions or disposals of subsidiaries or joint ventures during the year ended December 31, 2024[66] Future Outlook - The company does not expect the newly issued and revised Hong Kong Financial Reporting Standards to have a significant impact on the consolidated financial statements in the foreseeable future[10] - The group continues to follow a prudent policy to manage cash and maintain strong liquidity, ensuring the ability to seize future growth opportunities[70]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 181,556,000, a decrease of 5.65% compared to RMB 191,638,000 for the same period in 2023[1] - Gross profit increased to RMB 54,159,000, representing a gross margin of 29.85%, compared to RMB 51,975,000 in the previous year[1] - Net profit for the period attributable to owners of the company was RMB 7,822,000, up 7.53% from RMB 7,275,000 in the same period last year[2] - The company reported a foreign exchange gain of RMB 468,000 from overseas operations, compared to a loss of RMB 1,723,000 in the previous year[2] - Revenue for the six months ended June 30, 2024, was approximately RMB 181.6 million, a decrease of about 5.2% from RMB 191.6 million for the same period in 2023, primarily due to a reduction in OEM product sales[31] - Cost of sales for the six months ended June 30, 2024, was approximately RMB 127.4 million, a decrease of about 6.4% from RMB 139.7 million for the same period in 2023, consistent with the revenue decline[32] - Gross profit for the six months ended June 30, 2024, was approximately RMB 54.2 million, an increase of about 4.2% from RMB 52.0 million for the same period in 2023, with gross margins remaining stable at 29.8%[33] - The group reported a pre-tax profit of RMB 126,170 thousand for the six months ended June 30, 2024, compared to RMB 110,616 thousand in 2023, reflecting an increase of 14.0%[13] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 505,306,000, down from RMB 543,678,000 as of December 31, 2023[3] - The company's cash and cash equivalents decreased to RMB 19,845,000 from RMB 35,064,000 at the end of 2023[3] - Total liabilities increased to RMB 220,024,000, compared to RMB 164,195,000 at the end of the previous year[3] - The net asset value of the company rose to RMB 408,266,000, compared to RMB 399,960,000 at the end of 2023[3] - The total borrowings of the group as of June 30, 2024, were approximately RMB 255.2 million, slightly down from RMB 256.1 million as of December 31, 2023[43] - The asset-liability ratio as of June 30, 2024, was approximately 68.4%, stable compared to 68.6% as of December 31, 2023[45] Shareholder Information - As of June 30, 2024, the company has a significant shareholder, Zheng Guosi, holding 576,179,908 shares, representing 72.75% of the total equity[62] - Zheng Guozhong also holds 576,179,908 shares, equivalent to 72.75% of the total equity, indicating a strong concentration of ownership[63] - Xiejia Limited, a controlled entity, owns 201,662,968 shares, accounting for approximately 25.46% of the total issued shares[65] - The company has a total of 172,853,972 shares held by Canon International Limited, which represents about 21.82% of the total issued shares[65] - The ownership structure shows that major shareholders have significant control over the company, with multiple entities holding over 70% of the shares[65] Operational Highlights - Revenue from major customer A was RMB 34,001 thousand for the six months ended June 30, 2024, down 7.5% from RMB 36,756 thousand in 2023[9] - OEM product revenue decreased to RMB 57,318 thousand in 2024 from RMB 73,001 thousand in 2023, representing a decline of 21.5%[10] - Revenue from self-owned brand products, specifically "酷莎," increased to RMB 109,662 thousand in 2024 from RMB 104,375 thousand in 2023, showing a growth of 5.5%[10] - The group had no significant capital commitments as of June 30, 2024, down from RMB 19.3 million as of December 31, 2023[47] - The group continues to manage cash and maintain strong liquidity to seize future growth opportunities[50] Governance and Compliance - The company will continue to review and improve corporate governance standards, adhering to applicable rules and regulations[58] - The company has adopted a code of conduct for directors regarding securities trading, ensuring compliance with trading standards throughout the review period[59] - The audit committee, consisting of three independent non-executive directors, has reviewed the accounting principles and policies adopted by the group[82] Employee and Training Initiatives - As of June 30, 2024, the group had 402 employees, a slight decrease from 406 employees as of December 31, 2023[54] - The company emphasizes the importance of employee training, including internal professional development workshops and safety training programs[54] - The board believes that maintaining good working relationships with employees is crucial for sustainable development[54] Future Outlook - The company aims to strengthen the development of existing businesses to provide stable returns and growth prospects for shareholders in the future[30] - The company is committed to sustainable growth and aims to strengthen its position as a confectionery manufacturer in China through strategies such as capacity expansion and upgrading existing production lines[56] - The company plans to enhance marketing efforts and increase sales through e-commerce channels, aiming to expand its distribution network[56] - The business strategy includes leveraging production and product development capabilities to manufacture and sell proprietary brand products, as well as OEM products in China and overseas[56]

Financial Performance - For the year ended December 31, 2023, the company reported revenue of RMB 351.8 million, a decrease of 6.5% from RMB 376.4 million in 2022[9]. - The company's profit before tax for 2023 was RMB 11.1 million, down 56.5% from RMB 25.4 million in the previous year[9]. - Net profit attributable to the company's owners for 2023 was RMB 4.7 million, compared to RMB 15.2 million in 2022, reflecting a decline of 69.1%[9]. - The company's revenue decreased by approximately 6.5% from RMB 376.4 million for the year ended December 31, 2022, to RMB 351.8 million for the year ended December 31, 2023, primarily due to a decline in sales of proprietary brand products[17]. - Gross profit for the year ended December 31, 2023, was approximately RMB 99.5 million, a decrease of about 11.0% from RMB 111.8 million in 2022, with a gross margin of 28.3% compared to 29.7% in the previous year[19]. - The company recorded a profit of approximately RMB 4.9 million for the year ended December 31, 2023, down from RMB 16.1 million in 2022, primarily due to the decrease in gross profit[26]. Assets and Liabilities - Total assets increased to RMB 707.9 million in 2023 from RMB 662.9 million in 2022, representing a growth of 6.8%[10]. - Current assets rose significantly to RMB 363.3 million in 2023, up from RMB 304.1 million in 2022, marking an increase of 19.4%[10]. - The company's total equity increased slightly to RMB 400.0 million in 2023 from RMB 395.3 million in 2022, a growth of 1.7%[10]. - Non-current liabilities surged to RMB 143.7 million in 2023, compared to RMB 10.4 million in 2022, indicating a significant increase[10]. - As of December 31, 2023, the total borrowings of the group amounted to approximately RMB 256.1 million, an increase from RMB 201.6 million as of December 31, 2022[34]. - The group's debt-to-equity ratio as of December 31, 2023, was approximately 68.6%, up from 57.6% as of December 31, 2022, primarily due to an increase in bank borrowings during the year[38]. Operational Efficiency - The company aims to strengthen its existing business and provide stable returns and growth prospects for shareholders in the future[6]. - The company has implemented measures to address the impacts of COVID-19, ensuring that product and raw material supply remain unaffected[13]. - The company operates its own production facilities in Fujian Province, allowing for direct control over product quality and production costs[14]. - The cost of sales decreased by about 4.6%, from RMB 264.6 million in 2022 to RMB 252.3 million in 2023, aligning with the revenue decline[18]. - Selling expenses decreased from approximately RMB 37.3 million in 2022 to RMB 34.8 million in 2023, primarily due to reduced marketing and promotional expenses[21]. - Administrative expenses remained relatively stable at approximately RMB 33.4 million in 2022 and RMB 34.6 million in 2023[22]. Management and Governance - The company has a strong management team with extensive experience in finance and operations, including Chen Kan, the CFO, who has over 13 years of experience in accounting and financial management[63]. - The independent non-executive directors, including Wang Linan and Wu Shiming, bring significant experience in financial management and oversight, enhancing corporate governance[64][67]. - The company is strategically positioned in the market with a strong leadership team that has a proven track record in the food manufacturing sector[57][59]. - The management emphasizes the importance of independent judgment and oversight in its operations, ensuring transparency and accountability[64][67]. - The company has established a robust internal monitoring system to ensure compliance with local and international governance standards[78]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balance of power and independent oversight[81]. Corporate Social Responsibility - The company has been actively involved in various educational institutions, indicating a commitment to community engagement and corporate social responsibility[62]. - The group encourages environmental protection and strictly adheres to environmental regulations while promoting environmental awareness among employees[138]. - The group has made donations of approximately RMB 165,000 for the year ending December 31, 2023, compared to RMB 145,000 in 2022[140]. - An independent Environmental, Social, and Governance (ESG) report will be published according to the listing rules[149]. Shareholder Information - The board of directors did not recommend any dividend payment for the year ended December 31, 2023, consistent with the previous year[55]. - The company has no fixed dividend policy, and future dividends will depend on operational performance, cash flow, and financial condition[110]. - The company has maintained a public float of at least 25% of its total issued share capital since its listing date[178]. - The company has no significant related party transactions that constitute connected transactions under the listing rules for the review year[139]. Audit and Compliance - The audit committee reviewed the accounting principles and policies adopted by the group, confirming that the audited consolidated financial statements for the fiscal year ending December 31, 2023, comply with applicable accounting standards[191]. - The independent auditor's report confirmed that the consolidated financial statements accurately reflect the group's financial position as of December 31, 2023[193]. - The company has complied with applicable accounting standards and regulations, ensuring adequate disclosure in its annual report for the year ending December 31, 2023[90]. - The company has implemented risk management and internal control systems, which are reviewed annually for effectiveness, covering financial, operational, compliance, and risk management functions[118][119].

Financial Performance - For the fiscal year ended December 31, 2023, the company's revenue was approximately RMB 351.77 million, a decrease of 6.5% compared to RMB 376.41 million in 2022[2]. - The gross profit for the same period was approximately RMB 99.51 million, reflecting a decline of 11.0% from RMB 111.85 million in 2022[2]. - The net profit attributable to the company's shareholders was approximately RMB 4.92 million, down 69.4% from RMB 16.07 million in 2022[2]. - Basic and diluted earnings per share for the fiscal year were RMB 0.6, compared to RMB 2.0 in 2022[2]. - The group reported total revenue of RMB 351,767,000 in 2023, a decrease from RMB 376,411,000 in 2022, reflecting a decline of about 6.5%[22]. - The revenue from OEM products was RMB 143,523,000 in 2023, compared to RMB 137,846,000 in 2022, indicating a growth of approximately 4.9%[22]. - The net income from government subsidies decreased to RMB 1,314,000 in 2023 from RMB 2,092,000 in 2022, a decline of about 37.2%[23]. - The pre-tax profit before deductions was RMB 194,176,000 in 2023, down from RMB 202,322,000 in 2022, representing a decrease of about 4.0%[25]. - The total tax expenses for 2023 were RMB 6,144,000, compared to RMB 9,373,000 in 2022, indicating a reduction of approximately 34.4%[26]. - The company incurred employee benefit expenses of RMB 35,119,000 in 2023, down from RMB 42,658,000 in 2022, reflecting a decrease of about 17.6%[25]. - The company reported a foreign exchange loss of RMB (501,000) in 2023, contrasting with a gain of RMB 1,584,000 in 2022, indicating a significant shift in foreign exchange performance[23]. - The company recorded a profit of approximately RMB 4.9 million for the year ended December 31, 2023, compared to RMB 16.1 million for the same period in 2022, a decrease primarily due to a reduction in gross profit of approximately RMB 12.3 million[43]. Assets and Liabilities - Total assets decreased from RMB 358,864,000 to RMB 344,538,000, a decline of approximately 4.0% year-over-year[6]. - Current assets increased from RMB 304,081,000 to RMB 363,335,000, representing a growth of about 19.4%[6]. - Cash and cash equivalents rose from RMB 27,496,000 to RMB 35,064,000, an increase of approximately 27.5%[6]. - Total liabilities decreased from RMB 257,298,000 to RMB 164,195,000, a reduction of about 36.3%[6]. - Long-term bank loans decreased significantly from RMB 201,556,000 to RMB 117,100,000, a decline of approximately 41.9%[6]. - Net assets increased slightly from RMB 395,266,000 to RMB 399,960,000, reflecting a growth of about 1.8%[6]. - Trade payables as of December 31, 2023, totaled RMB 31,102,000, a decrease from RMB 35,637,000 in 2022[38]. - Total borrowings as of December 31, 2023, were approximately RMB 256.1 million, up from RMB 201.6 million as of December 31, 2022[68]. - The company's debt-to-asset ratio increased to approximately 68.6% as of December 31, 2023, compared to approximately 57.6% as of December 31, 2022[70]. Dividends and Shareholder Returns - The board of directors has resolved not to declare any final dividend for the fiscal year ended December 31, 2023[3]. - The company has no plans to declare any dividends for the year ending December 31, 2023, consistent with 2022[31]. - The board does not recommend the payment of any dividends for the year ended December 31, 2023[86]. Operational Focus and Market Strategy - The company is primarily engaged in the manufacturing and sale of confectionery products, indicating a focus on expanding its product offerings in the sweet food sector[7]. - The company aims to achieve sustainable growth and further solidify its position as a confectionery manufacturer in China[44]. - The company plans to enhance marketing efforts to strengthen its market position in the Chinese confectionery industry and increase brand awareness through e-commerce channels[47]. - The company aims to expand into new markets in China with significant growth potential, focusing on business development to provide stable returns and growth prospects for shareholders[47]. - The company has implemented various measures to respond to the COVID-19 pandemic, ensuring that product and raw material supply has not been significantly affected[41]. - The company operates production facilities in Fujian Province, Jinjiang City, which allows for direct control over product quality, production costs, and production pace[42]. Risk Management and Compliance - The company is committed to ensuring its business plans are flexible to address various risks and uncertainties[63]. - The company faces risks related to raw material price fluctuations, which could lead to significant production delays and increased sales costs[64]. - The group has implemented measures to minimize credit risk associated with trade receivables and has established regulatory procedures for overdue debts[81]. - The group has no significant foreign exchange risk and does not engage in foreign exchange contracts or other financial derivatives[78]. - The group continues to follow a prudent policy to manage cash and maintain strong liquidity to seize future growth opportunities[79]. Corporate Governance - The Audit Committee has been established in accordance with listing rules, consisting of three independent non-executive directors[94]. - The Group's auditor confirmed that the financial statements for the year ending December 31, 2023, are consistent with the draft financial statements[95]. - The Annual General Meeting is scheduled for May 31, 2024[98]. - Share registration will be suspended from May 28 to May 31, 2024, to determine eligibility for the upcoming Annual General Meeting[99]. - The Chairman and Executive Director is Zheng Zhenzhong, with other directors including Zheng Guosi and Chen Kan[100].