Financial Performance - Revenue for the six months ended June 30, 2024, was $185,155 thousand, a decrease of 2.0% compared to $188,909 thousand in the same period of 2023[1] - Gross profit increased by 46.5% to $32,903 thousand from $22,456 thousand year-on-year[1] - Profit for the period was $8,344 thousand, compared to a loss of $1,465 thousand in the previous year[1] - Basic and diluted earnings per share were both $0.55, a significant improvement from a loss of $0.10 per share in the prior year[1] - Proposed interim dividend per share increased to $0.273 from $0.229, reflecting a growth of 19.2%[1] - Comprehensive income for the period was $7,949 thousand, compared to a loss of $2,875 thousand in the same period last year[5] - The company reported a total expenditure of $174,138,000 for sales costs, selling and distribution expenses, and administrative expenses, down from $187,757,000 in 2023[16] - Corporate income tax expense for the first half of 2024 was $3,440,000, significantly higher than $1,044,000 in 2023[18] - Basic earnings per share for the period were $0.0055, with an interim dividend of $0.00273 per share, resulting in a payout ratio of 49.6%[47] Asset and Liability Management - Non-current assets totaled $140,887 thousand, down from $150,860 thousand as of December 31, 2023[2] - Current assets increased to $239,058 thousand from $232,650 thousand, driven by higher cash and cash equivalents[2] - Total assets amounted to $379,945 thousand, slightly down from $383,510 thousand[3] - Total liabilities decreased to $80,712 thousand from $88,727 thousand, indicating improved financial stability[3] - The group's cash and cash equivalents totaled $46.558 million, a decrease of $3.801 million or about 7.5% from the end of 2023[44] - Total borrowings increased by $1.928 million or approximately 4.4%, with 85.3% of borrowings in Vietnamese Dong[44] - Trade receivables rose to $34.88 million, an increase of $1.125 million or about 3.3%[44] - Inventory increased to $148.762 million, up $11.082 million or approximately 8.0%[44] Revenue Breakdown by Geography - Revenue by geographic location showed that Vietnam generated $79,505 thousand, Japan $35,218 thousand, and China $29,126 thousand for the six months ended June 30, 2024[10] - Vietnam market revenue for H1 2024 was approximately $79.505 million, a decrease of $2.806 million or 3.4% compared to H1 2023, with a revenue share drop from 43.6% to 43.0%[29] - Japan market revenue for H1 2024 was approximately $35.218 million, an increase of $0.890 million or 2.6% compared to H1 2023, with a revenue share increase from 18.2% to 19.0%[30] - China market revenue for H1 2024 was approximately $29.126 million, an increase of $1.879 million or 6.9% compared to H1 2023, with a revenue share rise from 14.4% to 15.7%[31] - ASEAN market revenue (excluding Vietnam) for H1 2024 was approximately $14.813 million, a slight increase of $0.277 million or 1.9% compared to H1 2023, with a revenue share increase from 7.7% to 8.0%[32] - U.S. market revenue for H1 2024 was approximately $13.011 million, a decrease of $1.695 million or 11.5% compared to H1 2023, with a revenue share decline from 7.8% to 7.0%[33] - Other markets (including Taiwan, South Korea, and the EU) generated approximately $13.482 million in revenue for H1 2024, a decrease of $2.299 million or 14.6% compared to H1 2023, with a revenue share drop from 8.4% to 7.3%[34] Product Revenue Analysis - Total revenue for H1 2024 was approximately $185.155 million, a decrease of $3.754 million or 2.0% compared to H1 2023[35] - Revenue from MSG and seasonings was approximately $105.611 million, a decrease of $7.215 million or 6.4% compared to the previous year, with a revenue share decline from 59.7% to 57.0%[36] - Revenue from modified starch, natural starch, and starch sugar was approximately $33.447 million, an increase of $2.159 million or 6.9% compared to the previous year[37] - Revenue from other products was approximately $19.720 million, an increase of $3.079 million or 18.5% compared to the previous year, with a revenue share increase from 8.8% to 10.6%[40] Operational Strategies and Market Outlook - The company continues to operate a single business segment focused on manufacturing and selling fermented food additives and biochemical products, maintaining consistent operational focus[10] - The group plans to expand product lines and optimize the product mix to enhance market share and sales profit[49] - The group will actively seek new markets and partnerships to expand market scale and strengthen brand positioning[49] - The group will continue to monitor raw material market trends and maintain stable relationships with suppliers to ensure a steady supply of materials[49] - The company plans to accelerate strategic alliances and cross-industry collaborations to enhance R&D capabilities and expand new product operations, aiming to improve operational scale and performance[50] - The company maintains a cautiously optimistic outlook for the second half of the year, despite facing challenges due to economic uncertainties and geopolitical tensions[50] - The company is focused on optimizing business processes through the implementation of electronic and information systems, leveraging big data for real-time feedback[50] - The company emphasizes continuous control over capital allocation strategies to enhance asset operational efficiency amid global financial market volatility[50] Dividend and Shareholder Information - A mid-term dividend of $0.273 per share has been declared, payable in HKD on October 4, 2024, based on an exchange rate of 1.00 USD to 7.76 HKD, equating to approximately HKD 2.11848 per share[51] - The company will suspend share transfer registration from September 16 to September 20, 2024, to facilitate the mid-term dividend distribution[52] - The interim report for the six months ending June 30, 2024, will be sent to shareholders and published on the company's website and the Hong Kong Stock Exchange website[57] - The board expresses gratitude to shareholders for their support and to employees for their dedication during the reporting period[58] Economic Context - The overall economic growth rate in Vietnam for the first half of 2024 was 6.42%, aligning with the government's target of 6.0-6.5%[25] - The average consumer price index (CPI) in Vietnam increased by 4.08% year-on-year, although it remained below the policy target of 4.5%[24] - The Vietnamese government aims to control inflation at 4.5% and achieve economic growth of 6.0% to 6.5% in 2024[48]

Corporate Governance and Board Diversity - The Company aims to achieve at least 8% (1 member) female representation on the Board by December 31, 2024[8]. - At least 55% of the Board members shall be non-executive Directors or independent non-executive Directors[6]. - The Board will consider setting measurable objectives to implement the Board Diversity Policy and review such objectives periodically[6]. - The Board aims to improve diversity goals and identify suitable female professionals for appointment based on merit by the end of 2024[6]. - The Board has adopted a diversity policy to ensure a balanced perspective relevant to the Company's business growth[6]. - The Group's non-executive directors are appointed for a specific term of three years, subject to renewal after the current term expires[35]. Risk Management and Internal Controls - The Audit Committee assists the Board in overseeing the management of existing or potential risks in the Company[19]. - The Company has implemented a risk management mechanism and internal control system to manage risks effectively[21]. - The Group's risk management and internal control systems are considered adequate and effective, with annual reviews to optimize their effectiveness[54]. Financial Performance - The company's revenue for the year ended December 31, 2023, was approximately US$386 million, a decrease of 14.4% compared to US$451 million in 2022[64]. - Gross profit for the year was approximately US$55.43 million, with a gross profit margin of 14.4%, representing an increase of 4.8% over the previous year[76]. - Net profit for the year was approximately US$7 million, a significant improvement from a net loss of US$4.38 million in the previous year, resulting in a net profit margin of 1.8%[76]. - The Group experienced a revenue decline of approximately 16.7% year-on-year due to weak economic conditions in Vietnam, Japan, and the PRC, along with declining demand and competition[83]. - Revenue from starch products and starch sugar products decreased by about 10.8% compared to the previous year, primarily due to decreasing demand and major customers reducing their inventories[83]. - Specialty chemicals revenue dropped significantly by 25.3% as a result of declining market demand in Vietnam and increased competition from international price drops[83]. - The Group's performance in the U.S. market saw a substantial decline of about 32.5%, particularly affecting starch sugar products due to economic uncertainties[83]. - The company proposed a final dividend of 0.2298 US cents per share, with total dividends paid and proposed per share amounting to 0.4588 US cents[64]. Market and Product Development - The Group plans to enhance operational flexibility and agility while actively pursuing new operations through strategic alliances focused on new products and business areas[40]. - The Group is focusing on developing new product specifications and high value-added products, particularly in modified starch, which has shown steady growth in markets like the U.S., Europe, and Vietnam[83]. - The Group is committed to diversifying its product offerings and developing new products with higher added value to capture market potential[83]. - The Group's strategic partnerships with internationally renowned brands in the consumer goods industry aim to increase the number of product items operated in Vietnam[83]. - Future growth strategies include market expansion and potential mergers and acquisitions to strengthen market position[106]. Environmental Sustainability - The company is committed to sustainable operations and environmental protection through rigorous governance and risk management practices[157]. - The Vietnam plant obtained the Environmental Protection Permit in 2023 and complied with local environmental regulations[161]. - In 2023, the total volume of wastewater discharged per ton of product output decreased by 22.40% to 4.42 m³/ton from 5.70 m³/ton in 2022[165]. - The total greenhouse gas emissions were reduced by 52.88%, from 1,477,348 tons CO2e in 2022 to 696,189 tons CO2e in 2023[165]. - The total emission intensity of greenhouse gas decreased by 48.07%, from 2.66 tons CO2e/ton in 2022 to 1.38 tons CO2e/ton in 2023[165]. - The total non-hazardous waste decreased by 36.51%, from 70,818,192 kg in 2022 to 44,963,550 kg in 2023[165]. - The Group's wastewater treatment systems are being improved to achieve better pollution prevention and ensure zero pollution discharge[184]. - The Group's resource usage management in 2023 focused on promoting energy conservation and recycling, with a commitment to sustainable operations[188]. Shareholder Communication - The company emphasizes ongoing communication with shareholders through various channels to ensure transparency and engagement[120]. - The company has implemented a Shareholders' Communication Policy to enhance effective communication with shareholders and stakeholders[145]. - The annual general meeting serves as a primary forum for communication between the company and its shareholders, providing necessary information for informed decision-making[153].

Financial Performance - For the year ended December 31, 2023, the company reported revenue of $386,171 thousand, a decrease of 14.4% compared to $451,007 thousand in 2022[2]. - Gross profit increased to $55,430 thousand, representing a growth of 27.9% from $43,349 thousand in the previous year[2]. - The company achieved a profit of $7,001 thousand for the year, a significant turnaround from a loss of $4,384 thousand in 2022[2]. - Basic and diluted earnings per share were both $0.46, compared to a loss of $0.29 per share in the prior year[2]. - Operating profit for the year was $12,979 thousand, compared to an operating loss of $3,116 thousand in 2022[5]. - Total comprehensive income for the year was $6,572 thousand, recovering from a loss of $7,833 thousand in the previous year[12]. - The net profit attributable to the company's owners was $6,986,000, a significant recovery from a loss of $4,386,000 in 2022[47]. - The basic earnings per share for 2023 was $0.46, compared to a loss of $0.29 per share in 2022[47]. Dividends - The proposed final dividend per share is $0.2298, with total dividends per share amounting to $0.4588[2]. - The basic earnings per share for the year were $0.460, with a total dividend payout of $0.4588 per share, representing a payout ratio of 100%[94]. - The board proposes a final dividend of 0.2298 USD per share, pending approval at the 2024 Annual General Meeting[112]. Revenue Breakdown - Revenue from a single external customer in Japan amounted to approximately $44,004,000, down from $53,734,000 in 2022[31]. - Revenue by geographic location showed a decline in Vietnam from $194,999,000 in 2022 to $173,560,000 in 2023, a decrease of 10.9%[33]. - Revenue from the Vietnamese market was approximately $173,560,000, a decrease of about $21,439,000 or 11% compared to 2022[58]. - Revenue from the Japanese market was approximately $71,045,000, a decrease of about $12,038,000 or 14.5% compared to 2022[60]. - Revenue from the Chinese market was approximately $54,965,000, a decrease of about $7,698,000 or 12.3% compared to 2022[61]. - The ASEAN market (excluding Vietnam) generated approximately $31,185,000 in revenue for 2023, a decrease of about $4,806,000 or 13.4% compared to 2022, with revenue share increasing from 8.0% to 8.1%[63]. - The U.S. market revenue for 2023 was approximately $24,456,000, down by about $11,800,000 or 32.5% from 2022, with revenue share decreasing from 8.0% to 6.3%[64]. - Other regions, including Taiwan, South Korea, and the EU, reported revenue of approximately $30,960,000 for 2023, a decrease of about $7,055,000 or 18.6%, with revenue share declining from 8.5% to 8.1%[65]. - Total revenue for the company in 2023 was approximately $386,171,000, down by $64,836,000 or 14.4% from 2022[67]. Cost and Expenses - Total sales, distribution, and administrative expenses for 2023 were $373,070,000, down from $454,342,000 in 2022, a reduction of 17.9%[42]. - The net financial expenses for 2023 were $(1,791,000), compared to $(553,000) in 2022, indicating an increase in financial costs[38]. - The company reported a net loss of $(122,000) from other income/expenses in 2023, compared to a gain of $219,000 in 2022[41]. - The company recognized a decrease in trade receivables aged 0 to 30 days from $25,334,000 in 2022 to $17,734,000 in 2023, a decline of 30%[41]. Assets and Liabilities - Total assets decreased to $383,510 thousand from $405,972 thousand in 2022[20]. - Current liabilities decreased to $82,357 thousand from $105,685 thousand in the previous year, indicating improved liquidity[20]. - Non-current liabilities reduced to $6,370 thousand from $8,569 thousand, reflecting a decrease in long-term financial obligations[20]. - In 2023, the total cash and cash equivalents, short-term bank deposits, and structured bank deposits amounted to $50,359,000, an increase of $2,549,000 or approximately 5.3% compared to the end of 2022[87]. - Total borrowings decreased by $15,967,000 or approximately 27% to $43,654,000 by the end of 2023[87]. - The current ratio improved to 2.8 in 2023 from 2.3 in 2022, indicating a stable financial structure[88]. Strategic Plans and Market Outlook - The company plans to adopt the revised Hong Kong Financial Reporting Standards effective January 1, 2024, with no significant impact expected on the group's financials[27]. - The company operates a single business segment focused on manufacturing and selling fermented food additives and biochemical products, with no changes reported for 2023[29]. - The company plans to integrate sales channels and introduce new products to stimulate future sales growth in Vietnam[58]. - The company aims to expand its product offerings and develop high-value products in response to market challenges in Japan[60]. - The company plans to actively invest in new product specifications and develop new customers to improve product structure and implement flexible pricing strategies[72]. - The company will continue to promote high-value specialty fertilizer products and actively develop new sales channels[72]. - The company plans to expand its product line and optimize its product mix to enhance market share and sales profit[98]. - The company will actively explore new channels and markets, adjusting product positioning and sales methods to strengthen brand positioning and competitive advantage[99]. - The company aims to improve production technology and efficiency, focusing on key technologies to enhance core competitiveness[99]. - The company will maintain stable relationships with domestic and international suppliers to ensure a stable supply of raw materials[99]. - The company aims to accelerate strategic alliances and cross-industry collaborations to enhance R&D capabilities and expand new product operations, thereby increasing operational scale and performance[101]. - The company plans to establish a combat-ready organization and dedicated strategy teams to improve organizational efficiency and integrate resources for revenue and profit growth[101]. - The introduction of electronic and information systems for big data management is expected to optimize business processes and enhance customer service responsiveness[101]. - Despite global economic concerns due to interest rate hikes and the ongoing Russia-Ukraine conflict, the company maintains a cautiously optimistic outlook for growth potential in Vietnam[101]. Corporate Governance - The company emphasizes maintaining good corporate governance and continuously reviewing governance practices[108]. - The audit committee, composed of independent non-executive directors, has reviewed the group's performance for the year ending December 31, 2023[110]. - The company is committed to controlling capital allocation strategies and improving asset operational efficiency amid global financial market volatility[105]. - The company expresses gratitude to shareholders, business partners, and employees for their unwavering support and contributions[116].

Revenue Performance - Group's revenue for the period was approximately $190 million, a decrease of $40.37 million or 17.6% compared to the previous period[1] - Revenue from MSG and seasoning products decreased by 20.1% year-on-year due to weak demand in Vietnam and PRC markets[2] - Sales of modified starch products saw steady growth in the US, Europe, and Vietnam, while starch sugar revenue decreased by 13.9%[2] - Specialty chemicals products revenue shrank by 31.9% due to weaker market demand and international price declines[2] - Fertilizers and feed products sales decreased by 10.2% due to declining international prices and weaker market demand[2] - Overall sales of trade products, including bulk food ingredients and coffee beans, increased slightly by 0.9%[2] - Group revenue decreased by 17.6% to approximately $188.9 million, with a gross profit margin of 11.9%[16] - Vietnam market revenue decreased by 18.1% to $82.311 million, with revenue share dropping from 43.8% to 43.6%[19] - Japan market revenue decreased by 14.1% to $34.328 million, with revenue share increasing from 17.4% to 18.2%[20] - ASEAN market (excluding Vietnam) revenue decreased by 12.2% to $14.536 million, with revenue share increasing from 7.2% to 7.7%[23] - China market revenue decreased by 8.6% to $27.247 million, with revenue share rising from 13.0% to 14.4%[25] - US market revenue decreased by 21.5% to $14.706 million, with revenue share dropping from 8.2% to 7.8%[26] - Other markets (Taiwan, South Korea, EU) revenue decreased by 33.5% to $15.781 million, with revenue share dropping from 10.3% to 8.4%[26] - Modified starch, native starch, and starch sugar products revenue decreased by 13.9% to $31.288 million[28] - Revenue in Vietnam decreased by approximately 18.1% due to declining demand for MSG, starch, soda, and fertilizers, and intense market competition[31] - Revenue in the PRC market declined by approximately 8.6% due to weak post-pandemic economic recovery[31] - Revenue in the Japanese market dropped by approximately 14.1% due to sluggish demand for MSG and modified starch[31] - Revenue in the ASEAN market decreased by 12.2% year-on-year due to inflation and poor economic sentiment[31] - Revenue in the US market declined by approximately 21.5%, primarily due to reduced demand for starch sugar products[31] - The Group's total revenue for the first half of 2023 was approximately $188.9 million, a 17.6% decrease year-on-year[33] - Specialty chemicals revenue decreased by 31.9% to approximately $10.8 million, with its share of total revenue dropping from 6.9% to 5.7%[37] - Revenue from other markets (Taiwan, Korea, and the EU) decreased by 33.5% to approximately $15.8 million[40] - Revenue from other products increased by 0.9% to approximately $16.6 million, driven by recovery in China's consumer market[52] - Revenue from MSG and seasoning-related products decreased by 20.1% to approximately $112.8 million, with its share of total revenue dropping from 61.6% to 59.7%[55] - Solid fertilizer sales decreased by $1,981,000 or -10.2% to $17,355,000, accounting for 9.2% of total revenue, up from 8.4% in 2022[58] - Other product revenue increased by $154,000 or 0.9% to $16,641,000, accounting for 8.8% of total revenue, up from 7.2% in 2022[58] - Revenue decreased by 17.6% to $188.9 million in the first half of 2023 compared to $229.3 million in the same period of 2022[125] - Revenue breakdown by product: MSG and seasonings (59.7%), modified starch & native starch & maltose (16.6%), specialty chemicals (9.2%), fertilizer and feed products (8.8%), others (5.7%)[128] - Revenue from the US decreased by 21.5% to approximately $14.7 million, with a revenue share drop from 8.2% to 7.8%[150] - Total revenue for the first half of 2023 was $188.9 million, a decrease of 17.6% compared to the same period in 2022[151] - Revenue from fertilizers and feed products decreased by 10.2% to $17.4 million, but its share of total revenue increased from 8.4% to 9.2%[152] - Revenue from MSG and seasoning-related products decreased by 20.1% to $112,826,000 compared to the same period in 2022, with the revenue share dropping from 61.6% to 59.7%[179] - Modified starch and starch sugar products revenue decreased by 13.9% to $31,288,000 due to weak demand in the US market[180] - Total sales for the first half of 2023 decreased by 17.6% to $188,909,000 compared to $229,277,000 in the same period of 2022[165] - Vietnam market sales decreased by 18.1% to $82,311,000, while the US market saw a 21.5% decline to $14,706,000[165] Profitability and Financial Performance - Gross profit margin was 11.9%, with gross profit of $22.46 million, a decrease of 11.1%[1] - Net loss for the period was $1.47 million, with a net profit margin of -0.8%[1] - Net profit for the period was approximately -$1.465 million, with a net profit margin of -0.8%[16] - Gross profit declined by 11.1% to $22.5 million in H1 2023 from $25.3 million in H1 2022[125] - Loss attributable to owners of the company widened significantly by 579.6% to $1.47 million in H1 2023 from $0.22 million in H1 2022[125] - The Group's basic loss per share for the period was -0.10 US cents, with an interim dividend of 0.229 US cents per share and a payout ratio of -237.5%[109] - The company declared an interim dividend of 0.229 US cents per share for H1 2023[119] - Cash and cash equivalents decreased by 14.4% to $40,937,000, while total borrowings increased by 3.0% to $61,407,000[174] - Trade receivables decreased by 11.9% to $29,959,000, while total inventory increased by 7.8% to $151,506,000[174] - Capital expenditure for the period was $4,724,000, a decrease from $7,137,000 in the first half of 2022[174] Market and Regional Performance - Vietnam's GDP growth rate was 3.72%, below the government's target of 6.2%, with total import and export trade decreasing by 15.2%[9] - Vietnam's trade surplus in the first half of 2023 was $12.25 billion, with total import and export trade amounting to $316.65 billion[10] - Vietnam's GDP growth in the first half of 2023 was 3.72%, significantly lower than the expected annual growth rate of 6.5%[131][160] - Vietnam's import and export trade volume in the first half of 2023 decreased by 15.2% year-on-year, but maintained a trade surplus of $12.25 billion[157] - Vietnam's inflation target for 2023 is set at 4.5%, with an economic growth target of 6.5%[148] - China's economic growth target for 2023 is 5.0%, with inflation expected to remain below 3%[148] - The Group remains cautiously optimistic about Vietnam's long-term development potential, supported by trade agreements like EVFTA, UKVFTA, and RCEP[134] - Vietnam experienced a power shortage in H1 2023 due to extreme weather affecting hydropower, and electricity prices increased by 3% in May 2023[198] - The Vietnamese Dong (VND) remained stable despite global economic challenges, supported by Vietnam's ample foreign exchange reserves and interest rate cuts by the State Bank of Vietnam[200] Strategic Initiatives and Future Plans - The company plans to actively develop new specifications, improve product structure, and implement flexible pricing strategies to drive revenue and profit growth in the second half of the year[58] - The company will continue to promote high-value-added specialty fertilizer products and actively develop new sales channels[58] - The company will focus on improving production technology, enhancing efficiency, and mastering key technologies to improve quality and reduce costs[60] - The company will accelerate the formation of strategic alliances or cross-industry cooperation to jointly develop markets and strengthen R&D functions[65] - The company will expedite the introduction of an electronic process and information system for big data management to optimize business processes and respond to customer needs in real-time[66] - The company will continue to expand into new channels and markets, adjust product positioning and sales tactics, and strengthen brand positioning and competitive advantages[62] - The company will continue to control capital allocation strategies, improve asset operation efficiency, and reduce risks from financial market fluctuations[70] - The company will leverage its Vietnam production base to develop ASEAN markets and markets with FTAs, CPTPP, and RCEP agreements[68] - The Group has adopted a "co-opetition" strategy to enhance product and service value, leveraging its production base in Vietnam to develop the ASEAN market and markets under FTA, CPTPP, and RCEP agreements[85] - The Group is accelerating strategic alliances and cross-industry collaborations to integrate resources, strengthen R&D capabilities, and drive business transformation and expansion[87] - The Group is implementing digitalization and information systems to manage and apply big data, optimize business processes, and improve customer service responsiveness[88] - The Group is actively expanding into new channels and markets, adjusting product positioning and sales strategies to enhance brand competitiveness and performance[111] - The Group is establishing a strategic organizational structure and dedicated teams to improve efficiency, coordinate operational plans, and pursue strategic mergers and acquisitions to increase revenue and scale[112] - The Group is continuously controlling capital deployment strategies to improve asset efficiency and reduce risks amid global financial market volatility[113] - The Group plans to launch new product specifications and explore new customers to improve revenue and profit in the second half of 2023[152] - The company plans to expand product lines, optimize product mix, and increase the proportion of high-value-added products to enhance market share and profitability[177] - The company is focusing on strengthening long-term strategic supplier alliances to stabilize the supply chain and reduce procurement costs[171] - The Group is focusing on improving operational flexibility, adjusting business portfolios, and developing new products to enhance profitability and create new growth drivers[189] - The Group is actively seeking alternative raw material solutions and maintaining stable supplier relationships to ensure a stable supply of raw materials[190] Operational Challenges and External Factors - The Group is facing challenges due to unstable energy and raw material supplies, high inflation, and increased operating costs driven by rising interest rates[110] - The Group's operating costs remained high due to elevated raw material prices, squeezing profit margins[131][160] - International oil prices decreased by approximately 14% period-on-period, with Brent crude and WTI falling 24% and 26% year-on-year, respectively[172] - The RMB exchange rate fluctuated from RMB6.7/USD in February 2023 to RMB7.2/USD by the end of June 2023, influenced by global economic changes and China's economic recovery resilience[187] - Major raw material prices, such as those from Thailand, Vietnam, and Cambodia, remained steady in 2022/23 but rose sharply due to concerns over El Nino's impact on future output[195] - Global molasses production in 2022/23 was slightly lower than the previous year, with prices remaining high due to limited export volumes and increased ethanol production demand[197] Corporate Governance and Compliance - The Group's Audit Committee reviewed the unaudited interim condensed consolidated financial information for the six months ended June 30, 2023, and found no material misstatements[114][116] - As of June 30, 2023, the Group employed a total of 3,915 employees, with 3,698 in Vietnam, 190 in China, 15 in Taiwan, and 12 in Cambodia[102]

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，概不對因本公告全部或任何 部份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。 VEDAN INTERNATIONAL (HOLDINGS) LIMITED 味 丹 國際 （ 控 股）有 限 公司 （根據開曼群島法例註冊成立之有限公司） 02317 （股份代號： ） 截至二零二三年六月三十日止六個月 中期業績公佈 財務摘要 未經審核截至六月三十日 止六個月 二零二三年 二零二二年 變動 千美元 千美元 188,909 229,277 -17.6% 收益 22,456 25,268 -11.1% 毛利 ...

Risk Management and Internal Controls - The Group emphasizes stringent internal controls and risk management to mitigate financial risks, including regular assessments of capital positions and market conditions[4] - The sales and payment collection cycle management is designed to minimize revenue-related risks through oversight of order processing, credit provision, and payment collection procedures[5] - The Group's risk management includes legal affairs and intellectual property rights, collaborating with legal counsels to mitigate risks associated with contracts and disputes[7] - The Group conducts regular audits to analyze operational risks and ensure effective internal controls are in place[1] - The Board of Directors oversees the establishment of effective risk management mechanisms and internal control systems[1] Investment and Market Expansion - The Group has established an "Investment Review Board" to rigorously evaluate mid-to-long-term investments and strategic alliances[7] - Future outlook includes a projected revenue growth of 15% for the next fiscal year, driven by new product launches and market expansion strategies[12] - Market expansion efforts are focused on Southeast Asia, with plans to increase market share by 10% in the region[12] - The company is exploring potential acquisitions to enhance its product portfolio and market presence, targeting a 5% increase in market share through strategic mergers[12] - The company aims to leverage its experienced leadership to expand its market presence and enhance product offerings[23] Financial Performance and Projections - The company reported a significant increase in user data, with a 20% growth in customer base year-over-year[12] - The company is investing in R&D for new technologies, with a budget allocation of $5 million for the upcoming year[12] - The company aims to enhance operational efficiency, targeting a 10% reduction in production costs through process optimization[12] - A new product line is set to launch in Q2 2024, expected to contribute an additional $2 million in revenue[12] Sustainability and Environmental Responsibility - Environmental protection measures are implemented in accordance with local regulatory requirements, ensuring the fulfillment of environmental responsibilities[9] - The management team emphasizes a commitment to sustainability, aiming for a 25% reduction in carbon emissions by 2025[12] - The Group's commitment to corporate social responsibility includes maintaining sound corporate governance and risk management[121] - The Group has formulated environmental policies that include environmental protection in daily management and energy conservation education[121] - The Group established the "Corporate Social Responsibility Committee" to promote environmental education and implement sustainable environment plans[125] Employee Management and Labor Practices - The Group employs a total of 3,641 employees in its Vietnam plant, with 2,941 males and 700 females[178] - The Group adheres to local labor laws and has established a transparent remuneration system, reporting to relevant authorities[173] - The Group provides labor and health insurance to all employees and conducts regular health checks to safeguard their well-being[183] - The Group respects employees' rights to form associations and holds regular labor conferences to address employee concerns[181] - The average monthly resignation rate for male staff in the Vietnam plant is 1.40%, while for female staff it is 1.24%[178] Corporate Governance and Compliance - All Non-Executive Directors are subject to retirement by rotation at least once every three years, ensuring compliance with corporate governance standards[90] - The Company has confirmed that all Independent Non-Executive Directors are independent as per the relevant regulations[91] - The Company has adopted the Model Code for Securities Transactions, ensuring compliance with the Listing Rules[94] - The Company has established a Shareholders' Communication Policy to promote active engagement and enable shareholders to exercise their rights effectively[107] - The Company acknowledges its responsibilities for preparing the financial accounts for the year ended 31 December 2022[94] Operational Efficiency and Technological Advancements - The Group will continue to promote technological advances in production to improve efficiency and reduce costs, enhancing core competitiveness[56] - The Group intends to adopt a "co-opetition" strategy to enhance product and service value, leveraging its production base in Vietnam to develop the ASEAN market and other free trade agreement markets[56] - The Group will expedite the introduction of an electronic process and information system for Big Data management to optimize business processes and respond to customer needs[58] - The Group's financial personnel in Vietnam and China undertook various courses to enhance their skills in 2022[52] Emissions and Environmental Impact - The total volume of wastewater discharged increased to 5.70 m³/ton, a rise of 21.02% compared to 2021[139] - Total greenhouse gas emissions surged to 1,477,348.00 tons, marking a 74.99% increase from 2021[139] - The Vietnam plant obtained the Environmental Protection Permit in 2022, complying with local environmental standards[138] - The Group's performance in emissions management and energy consumption management was affected by the energy crisis, COVID-19, and its production mode in 2022[125] - The Group's ecological initiatives include promoting park-like construction in factory areas with extensive tree planting[130]

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，概不對因本公告全部或任何 部份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。 VEDAN INTERNATIONAL (HOLDINGS) LIMITED 味 丹 國際 （ 控 股）有 限 公司 （根據開曼群島法例註冊成立之有限公司） 02317 （股份代號： ） 截至二零二二年十二月三十一日止年度 業績公佈 財務摘要 截至十二月三十一日止年度 二零二二年 二零二一年 差異 千美元 千美元 451,007 382,361 18.0% 收益 43,349 60,373 –39.3% 毛利 (4,384) 11,032 –139.7% 本年度（虧損）╱溢利 (4,386) 11,014 –139.8% ...

Financial Performance - Revenue for the six months ended June 30, 2022, was $229.3 million, representing a 16.9% increase from $196.1 million in the same period of 2021[7] - Gross profit for the same period was $25.3 million, a decrease of 33.5% compared to $38.0 million in 2021[7] - The company reported a loss attributable to owners of $216,000, a significant decline from a profit of $10.4 million in the previous year, marking a 102.1% change[7] - Basic and diluted loss per share for the period was (0.01) US cents, compared to earnings of 0.68 US cents per share in 2021[7] - The Group's revenue for the period was approximately US$229,277,000, an increase of approximately US$33,192,000, or approximately 16.9% year-on-year[22] - Gross profit for the period was approximately US$25,268,000, a year-on-year decline of 33.5%, with a gross profit margin falling to 11.0%[22] - Net loss for the period was approximately US$212,000, a year-on-year decrease of approximately US$10,594,000, resulting in a net profit margin of -0.1%[22] - The gross profit margin fell to 11.0% from 19.4% in the first half of 2021, with gross profit amounting to US$25.3 million, a decrease of US$12.8 million year-on-year[40] - The net profit margin dropped to a loss of -0.1% from 5.3% in the same period of 2021, resulting in a net loss of US$212,000, a decline of US$10.6 million compared to the previous year[40] Market Conditions - The economic growth in Vietnam, the company's largest market, has slowed due to global inflation and raw material supply shortages[21] - The ongoing Russia-Ukraine war has impacted the transport and supply of raw materials, leading to increased prices and inflation risks[21] - The company is facing challenges due to restricted economic activity and transportation in key regions globally[21] - The overall operating environment remains uncertain due to the economic downturn of key trading partners[21] - Future outlook remains cautious as the company anticipates ongoing volatility in raw material prices and economic conditions[21] Revenue Breakdown by Region - Revenue in Vietnam increased by approximately 13.5% year-on-year due to rising market demand for products such as MSG, starch, and fertilizers[23] - Overall revenue in the PRC decreased by approximately 4.1% year-on-year due to ongoing pandemic impacts[23] - Revenue in Japan grew by approximately 23.5% year-on-year as a result of a flexible sales strategy responding to local demand[23] - The ASEAN market saw a 19.4% year-on-year increase in sales volume of core products, including MSG and modified starch[23] - Sales growth in the US market was approximately 38.3% due to increased demand for MSG, maltose, and modified starch[23] Strategic Plans - The Group plans to enhance flexibility in operations and adjust sales strategies in response to ongoing economic uncertainties and inflation risks[31] - The Group is negotiating with internationally renowned brands for product distribution in Vietnam to diversify operations and expand scale[28] - The Group plans to adjust and strengthen sales strategies, accelerate new product development, and focus on cost management to stabilize operations amid rising raw material and energy costs[33] - The Group aims to control inflation at 4% and achieve economic growth of 6.9% in the second half of the year, creating new development opportunities for enterprises[45] - The Group plans to leverage its industry advantages to expand into the ASEAN market and seek new customers and partnerships[58] Financial Position and Cash Flow - The Group's cash and cash equivalents decreased by US$37.21 million, or approximately 53.4%, to US$32.53 million compared to the end of 2021[91] - Short-term bank borrowings increased by US$13.49 million, or around 42.6%, to US$45.15 million year-on-year[91] - Trade receivables rose to US$43.56 million, an increase of US$11.39 million or approximately 35.4% compared to the end of 2021[91] - Total inventory increased by US$25.45 million, or around 25.0%, to US$127.10 million compared to the end of 2021[91] - The Group's gearing ratio increased to 17.1% from 13.3% at the end of 2021, while the net gearing ratio rose to 6.2% from -9.7%[91] Corporate Governance - The company has complied with the Corporate Governance Code during the reporting period up to June 30, 2022, except for the chairman's absence at the annual general meeting[129][130] - The remuneration of employees is based on performance, with discretionary bonuses and share options awarded based on individual assessments[132] - The company confirmed that all directors complied with the Model Code for Securities Transactions during the reporting period[128] - The interests of directors and chief executives in shares were disclosed, with no additional interests reported[124] Audit and Compliance - The interim financial information for the six months ended June 30, 2022, has been reviewed by PricewaterhouseCoopers[142] - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[144] - The review of the interim results includes the interim condensed consolidated balance sheet and income statement for the Group[142] - The Group's auditor has not expressed an audit opinion due to the scope of the review being less than that of a full audit[143] Future Outlook - The Group aims to expand product lines and optimize the product mix to increase market share and profitability[100] - The Group plans to actively expand into new channels and markets, adjusting product positioning and sales tactics to improve performance[100] - The Group will enhance production efficiency and core competitiveness through advancements in production technologies[100] - The Group is confident in overcoming operational difficulties and promoting rapid recovery through its existing strategies and market presence[106]

Company Overview - Vedan International is the largest MSG producer in Southeast Asia and the largest supplier of lysine and cassava starch-based industrial products in Vietnam[8]. - The Group's production facilities are located in Vietnam and the PRC, ensuring a steady upstream supply of raw materials and advanced fermentation production technology[10]. - The company has undergone continuous production expansion due to strong growing demand since establishing its major production base in Vietnam in 1991[8]. - The company is committed to expanding its market presence in ASEAN countries, the PRC, Japan, Taiwan, and several European countries[7]. - Vedan International's products are primarily marketed under the VEDAN brand name, catering to food distributors and manufacturers across various industries[7]. Financial Performance - In 2021, Vedan International reported significant growth in revenue, driven by increased demand for its fermentation-based amino acids and food additive products[14]. - The company's revenue for the year ended December 31, 2021, was approximately US$382,361,000, representing an increase of 6.0% compared to US$360,741,000 in 2020[27]. - Gross profit decreased to approximately US$60,373,000, down 16.8% from US$72,556,000 in the previous year, with a gross profit margin of 15.8%[27]. - Net profit for the year was approximately US$11,032,000, a decrease of 33.8% from US$16,677,000 in 2020, resulting in a net profit margin of 2.9%[27]. - Overall revenue fell by approximately 2.2% compared to last year due to pandemic-related restrictions in Vietnam[33]. Market Performance - Revenue from the PRC operations grew by approximately 34.9% compared to the previous year, driven by strong demand for trade products and coffee beans[30]. - The ASEAN market saw an 11.3% increase in revenue year-on-year, attributed to higher sales volumes of key products[30]. - Revenue in Vietnam decreased by 0.7% due to strict pandemic measures impacting production and sales activities[30]. - The United States market experienced a revenue drop of around 2.2% due to skyrocketing ocean freight rates and container shortages[30]. - Revenue from trade products in the PRC surged by approximately 63.0% year-on-year, attributed to enhanced product mix and sales network[33]. Strategic Initiatives - The Group's strategic acquisitions, including the factory in Xiamen and Shanghai Vedan Foods Company, have strengthened its market position in the PRC[8]. - The Group anticipates continuous supply shortages and high prices for raw materials, energy, and packaging materials in 2022[37]. - The Group aims to secure major sources of raw materials and enhance sales strategies to stabilize production costs amid rising inflation risks[37]. - The Group plans to strengthen supply chain management and seek strategic alliances to enhance core competitiveness and create greater operational value[55]. - The Group intends to adopt a "co-opetition" strategy to leverage its production base in Vietnam and develop markets under various free trade agreements, enhancing competitive advantages[102]. Leadership and Governance - The management team possesses extensive experience and knowledge, contributing to the Group's strong competitiveness in the industry[10]. - The Group's strategic management is focused on business development and operational efficiency, led by experienced executives[126]. - The Group emphasizes high-level corporate governance standards as a foundation for effective operation and sustainable development[150]. - The Group's corporate governance practices are aligned with the Corporate Governance Code set by the Hong Kong Stock Exchange[151]. - The Group has established a strong foundation in the MSG industry, with key executives having decades of relevant experience[135]. Risk Management - The Group's internal control and risk management systems are monitored by the Board to ensure sound governance practices[1]. - The Audit Committee assists the Board in overseeing the management of existing or potential risks within the Company[171]. - The Group has established an "Investment Review Board" to rigorously evaluate mid-to-long-term investments and strategic alliances[180]. - The Group's risk management includes financial cycle management, credit risk management, and regular assessments of capital position and market conditions[177]. - The Group has maintained the soundness of its information management system and safeguarded network information security[180]. Environmental and Social Responsibility - The Group actively fulfills its environmental and social responsibilities as part of its business operations[153]. - The Group has implemented environmental protection measures in accordance with local regulatory requirements to fulfill its environmental responsibilities[182]. - The Group conducts reviews and risk analyses on occupational safety and hygiene incidents to formulate improvement measures[183]. - The Group's legal affairs department collaborates with professional legal counsels to mitigate risks and ensure law compliance[180]. - The Group plans to focus on energy conservation and resource recycling to improve energy efficiency and support sustainable operations[104].

Financial Performance - Revenue for the six months ended June 30, 2021, was US$196,085,000, representing a 12.7% increase from US$173,936,000 in 2020[8] - Gross profit for the same period was US$38,022,000, up 23.3% from US$30,827,000 in 2020[8] - Profit attributable to owners of the Company increased by 76.1% to US$10,382,000 compared to US$5,894,000 in 2020[8] - Basic and diluted earnings per share for the period were both 0.68 US cents, compared to 0.39 US cents in 2020[8] - Proposed interim dividend per share is 0.272 US cents, an increase from 0.194 US cents in 2020[8] - Operating profit rose to $13,400,000, up from $8,187,000 in the previous year, reflecting a significant increase of approximately 63.5%[153] - Profit for the period reached $10,382,000, compared to $5,894,000 in 2020, marking an increase of around 76.5%[153] - Total comprehensive income for the period rose to US$10,828,000 in 2021 compared to US$5,316,000 in 2020, marking an increase of 103.5%[160] Revenue Breakdown - The company reported significant growth in the MSG and seasonings segment, contributing 18.4% to total revenue[11] - Revenue from specialty chemicals accounted for 5.4% of total revenue, indicating a stable market presence[11] - Revenue from Vietnam in the first half of 2021 was approximately US$88,526,000, an increase of US$7,267,000 or 8.9% compared to the same period in 2020, accounting for 45.1% of the Group's total revenue[59] - Revenue from the Japan market was approximately US$32,379,000, an increase of US$328,000 or 1.0% compared to the first half of 2020, accounting for 16.5% of the Group's total revenue[62] - Revenue from the PRC market was approximately US$31,095,000, an increase of US$9,561,000 or 44.4% compared to the first half of 2020, accounting for 15.9% of the Group's total revenue[63] - Revenue from the ASEAN market, excluding Vietnam, was approximately US$13,855,000, an increase of US$1,616,000 or 13.2% compared to the same period in 2020, accounting for 7.1% of the Group's total revenue[64] - Revenue from the US market was approximately US$13,551,000, an increase of US$539,000 or 4.1% compared to the same period in 2020, but its share of total revenue fell from 7.5% to 6.9%[71] - Revenue from MSG and seasoning-related products amounted to approximately US$115,862,000, an increase of approximately US$3,884,000 or 3.5%, with its contribution to total revenue decreasing from 64.4% to 59.1%[79] - Revenue from modified starch, native starch, and maltose products increased by approximately US$5,777,000 or 19.1% to approximately US$36,000,000, with its share of total revenue rising from 17.4% to 18.4%[80] - Revenue from specialty chemicals and fertilisers and feed products was approximately US$10,535,000, an increase of approximately US$1,336,000 or 14.5%, contributing 5.4% to total revenue[84] - Revenue from fertilisers and feed products increased by US$3,076,000 or 25.9% year-on-year to approximately US$14,957,000, with its contribution to total revenue rising from 6.8% to 7.6%[85] - Revenue from other products increased by approximately US$8,076,000 or 75.8% to approximately US$18,731,000, with its contribution to total revenue growing from 6.1% to 9.5%[86] Market Expansion and Strategy - The company plans to expand its market presence in ASEAN countries, which currently contribute 16.5% to total revenue[11] - Future outlook includes continued investment in new product development and market expansion strategies[8] - The company is exploring potential acquisitions to enhance its product offerings and market reach[8] - The Group plans to accelerate new product development and strategic alliances to stabilize production costs and enhance sales strategies[36] - The Group aims to leverage its industry advantages in the ASEAN market to achieve sales breakthroughs through closer partnerships and improved sales channels[64] - The Group plans to expand product lines and optimize the product mix to increase market share and boost profit from product sales[110] - The Group aims to actively expand new channels and markets, adjusting product positioning and sales methods to improve performance[110] - Strategic alliances and cooperation with other businesses will be pursued to consolidate resources and enhance market development, alongside strengthening R&D capabilities[113][117] Operational Challenges and Outlook - The company anticipates uncertainties in operations for the second half of the year, particularly in Vietnam, due to ongoing pandemic challenges and rising raw material prices[34] - The Group remains cautiously optimistic about its business outlook, leveraging trade agreements such as EVFTA, UKVFTA, and RCEP for future growth[39] - The Group's operational strategies will focus on enhancing flexibility to adapt to the fast-changing operating environment[40] - The Group anticipates challenges in the second half of 2021 due to the ongoing impact of COVID-19 and rising operational costs, particularly in coal and sugar prices, which may remain high[111][116] Financial Position and Cash Flow - Cash and cash equivalents decreased by approximately US$24,105,000, or around 33.4%, to approximately US$48,053,000 compared to the end of 2020[103] - Trade receivables increased by approximately US$6,670,000, or about 22.0%, totaling approximately US$36,968,000, with 67.6% turnover within 30 days[103] - Total inventory rose by approximately US$24,947,000, or around 27.2%, reaching approximately US$116,612,000 compared to the end of 2020[103] - The Group's cash and cash equivalents at the end of the period increased to US$46,133,000 in 2021 from US$32,219,000 in 2020, reflecting a growth of 43.3%[169] - The company paid dividends of US$7,040,000 in 2021, compared to US$3,259,000 in 2020, indicating a 116.5% increase in dividend payouts[169] Corporate Governance and Compliance - The Company has complied with the Corporate Governance Code during the reporting period, except for the chairman's absence at the annual general meeting[132] - The interim report highlights the company's commitment to transparency and adherence to Hong Kong Accounting Standards[174] - The Audit Committee reviewed the unaudited interim condensed consolidated financial information for the six months ended June 30, 2021[136] - The interim results for the six months ended June 30, 2021, were reviewed by PricewaterhouseCoopers[137] Shareholder Information - As of June 30, 2021, Mr. YANG, Tou-Hsiung and Mr. YANG, Cheng each hold approximately 11.15% of the total issued shares of the Company, totaling 169,730,196 shares[121] - The Group has not purchased, sold, or redeemed any of its shares during the six months ended June 30, 2021[120] - As of June 30, 2021, Billion Power Limited and Taiwan Vedan Enterprise Corporation each hold 512,082,512 shares, representing 33.62% of the total issued shares of the Company[128] - King International holds 169,730,196 shares, accounting for 11.15% of the total issued shares[128] - Concord Worldwide Holdings Limited and High Capital Investments Limited each hold 127,297,646 shares, representing 8.36% of the total issued shares[128] Employee Information - The Company had a total of 3,797 employees as of June 30, 2021, with 3,598 based in Vietnam, 186 in China, and 13 in Taiwan[132]