Financial Performance - In 2022, the company's revenue increased to US$159,239,000, up 11.5% from US$142,407,000 in 2021[16] - Gross profit rose to US$39,189,000, representing a 12.4% increase from US$34,760,000 in the previous year[16] - The company reported a loss attributable to shareholders of US$6,677,000, compared to a profit of US$19,564,000 in 2021[16] - Basic and diluted loss per share was US(2.64) cents, a decline from earnings of US(7.72) cents in 2021[16] - For the year ended December 31, 2022, the Group's revenue increased by 11.8% to US$159.2 million, compared to US$142.4 million in 2021[24] - Loss attributable to shareholders was US$6.7 million in 2022, a decline from a profit of US$19.6 million in 2021, primarily due to losses from ECI Metro[25] - Basic and diluted loss per share were both 2.6 US cents in 2022, compared to a profit of 7.7 US cents in 2021[26] - Overall gross profit margin improved to 24.6% in 2022 from 24.4% in 2021[24] Assets and Liabilities - Total assets decreased to US$350,585,000 from US$365,216,000 in 2021, reflecting a 4.5% decline[16] - The Group's cash and cash equivalents decreased to US$30.9 million as of December 31, 2022, down by US$0.2 million from US$31.1 million as of December 31, 2021[46] - The net debt to equity ratio was 0.07 as of December 31, 2022, with net debt amounting to US$18.2 million, up from US$11.5 million in the previous year[44] - Total bank borrowings increased to US$49,102,000, up from US$42,612,000 in the previous year, marking a 15.5% rise[16] - Total borrowings increased to US$49.1 million as of December 31, 2022, compared to US$42.6 million as of December 31, 2021[47] - As of December 31, 2022, 37.3% of total borrowings (US$18.3 million) were secured, down from 44.4% (US$18.9 million) in the previous year[47] Market and Business Outlook - The company plans to seize opportunities in the new energy vehicle market and enhance production efficiency moving forward[10] - The outlook for 2023 indicates cautious performance expectations due to uncertainties in economic recovery and intense competition in the industrial sector[40] - The Group's biochemical business revenue increased by 11.8% to US$159.2 million, with revenue contributions from China (52.3%), the Americas (18.3%), Asia Pacific (15.3%), and others (14.1%)[31] - ECI Metro's share of profits and losses decreased from a profit of US$4 million in 2021 to a loss of US$9 million in 2022 due to a 45% decline in the excavator market[38] - Zhanjiang Deni's share of profit was US$2.1 million in 2022, slightly down from US$2.2 million in 2021, amid a 2.1% increase in automobile sales[39] Corporate Governance and Compliance - The Company held one annual general meeting, seven Board meetings, four Audit Committee meetings, two Remuneration Committee meetings, one Nomination Committee meeting, and two Corporate Governance Committee meetings in 2022[80] - The Board is responsible for presenting a balanced and clear assessment of the Company's performance in the annual and interim reports[88] - The Directors confirm their responsibility for preparing financial statements that reflect the Group's financial position and performance in accordance with International Financial Reporting Standards[89] - The Group has established an Anti-corruption Policy and Whistleblowing Policy to uphold corporate governance principles and ethical standards[100] - The Corporate Governance Committee is responsible for reviewing the company's governance policies and compliance with legal requirements[174] Risk Management - The Board conducted an annual review of the effectiveness of the Group's risk management and internal control systems in 2022, considering them effective and adequate[184] - The Group has established a Risk Management Policy to manage risks associated with achieving business objectives[180] - The Board has delegated the responsibility of reviewing the effectiveness of the Group's risk management and internal control systems to the Audit Committee[181] - The Group is committed to continuous improvement in its risk management and internal control framework[186] Human Capital and Diversity - The company is focused on improving human capital through recruitment and training to support sustainable development[5] - The Group employed around 1,000 employees in the PRC and Hong Kong as of December 31, 2022[54] - The company aims to increase the percentage of female employees from 27% to 30% over the next five years to promote gender diversity in the workforce[151] - The company plans to appoint at least one female director by December 31, 2024, to enhance gender diversity at the board level[146] - All independent non-executive directors are assessed for independence annually, ensuring no conflicts of interest with senior management[143] Innovation and Corporate Culture - Innovation is a key driver for the Group, with a focus on fostering creativity among employees to enhance products and services[105] - The Group emphasizes "Speed with Quality," ensuring fast adaptation to changes without compromising quality, which is crucial for business efficiency[98] - The Group's corporate culture aligns with its purpose, values, and strategy, promoting a cohesive operational framework[101] Audit and Remuneration - The Audit Committee is responsible for independent oversight of the Group's financial reporting, risk management, and internal control systems[109] - The Remuneration Committee's terms of reference were revised on February 23, 2023, to include review and approval of share schemes under Chapter 17 of the Listing Rules[107] - The Group paid a total of US$242,000 to the external auditor for audit and non-audit services in 2022, with US$187,000 for audit services and US$53,000 for review engagements[122] - The remuneration for directors is determined after considering individual performance, Group performance, and market conditions[128]

Financial Performance - For the nine months ended September 30, 2022, the company reported revenue of $122.643 million, an increase of 24.3% compared to $98.583 million for the same period in 2021[2] - Gross profit for the same period was $28.813 million, up from $24.779 million, reflecting a gross margin improvement[2] - The company recorded a net loss of $5.317 million for the nine months ended September 30, 2022, compared to a profit of $23.766 million in the previous year[4] - The total comprehensive loss for the period was $29.191 million, compared to a comprehensive income of $26.526 million in the prior year[4] Assets and Liabilities - Non-current assets decreased to $214.321 million as of September 30, 2022, from $240.738 million as of December 31, 2021[6] - Current assets totaled $118.457 million, down from $124.478 million at the end of the previous year[6] - The company's total liabilities decreased to $287.378 million as of September 30, 2022, from $328.599 million at the end of 2021[6] - The equity attributable to shareholders was $224.988 million as of September 30, 2022, compared to $253.059 million at the end of the previous year[8] Market Activity and Outlook - The company did not report any new product launches or significant market expansions during the period[2] - Future outlook remains cautious due to market conditions, with no specific guidance provided for the upcoming quarters[2]

Financial Performance - For the six months ended June 30, 2022, the Group's revenue increased by 28.2% to US$81.21 million compared to US$63.37 million in the same period of 2021[6] - The loss attributable to shareholders was US$4.98 million in 1H22, a decline from a profit of US$6.72 million in 1H21, primarily due to a significant drop in profits from ECI Metro[7] - Basic and diluted earnings per share were negative 1.97 US cents in 1H22, compared to positive 2.65 US cents in 1H21[8] - Revenue for the six months ended June 30, 2022, was US$81,211,000, an increase of 28.1% compared to US$63,369,000 in the same period of 2021[59] - Gross profit for the period was US$19,127,000, up 16.4% from US$16,414,000 in the previous year[59] - The company reported a loss before tax of US$2,891,000, compared to a profit of US$8,799,000 in the same period of 2021[59] - Total comprehensive income for the period was a loss of US$15,424,000, compared to a gain of US$10,110,000 in the same period of 2021[62] - The company reported a loss of US$4,984,000 for the six months ended June 30, 2022, compared to a profit of US$6,724,000 for the same period in 2021[81] Revenue Sources - Revenue contribution from different regions included 40.5% from China, 24.3% from the Americas, 20.4% from Asia Pacific (excluding China), and 14.8% from other regions[15] - The Group's strategic expansion into related veterinary products contributed to revenue growth in China amid softening demand for CTC products[17] - Despite logistical challenges from the COVID-19 pandemic, the Group achieved solid revenue growth through targeted marketing and increased overseas sales, particularly in North America[16] - Revenue from Mainland China was US$32,905,000, up from US$32,069,000 in 2021, representing a growth of 2.6%[127] Cost and Profitability - The overall gross profit margin declined from 25.9% in 1H21 to 23.6% in 1H22, impacted by rising raw material and energy costs[18] - The Group's cost of inventories sold for the six months ended June 30, 2022, was US$62,084,000, an increase of 32.2% from US$46,955,000 in 2021[142] - The Group reported a total asset value of US$365,216,000 as of June 30, 2022[125] Cash Flow and Financing - The Group's cash and cash equivalents were US$28.3 million as of 30 June 2022, a decrease of US$2.8 million compared to US$31 December 2021[34] - Total borrowings amounted to US$43.8 million as of 30 June 2022, an increase from US$42.6 million as of 31 December 2021[38] - Cash generated from operations for the six months ended June 30, 2022, was $3,037,000, compared to a cash used in operations of $(9,625,000) for the same period in 2021, representing a significant turnaround[85] - Net cash flows generated from operating activities were $1,937,000 for the first half of 2022, compared to $(10,629,000) in the prior year, indicating improved operational efficiency[85] Assets and Liabilities - Total non-current assets decreased to US$225,261,000 as of June 30, 2022, from US$240,738,000 as of December 31, 2021[66] - Current liabilities increased to US$73,280,000 as of June 30, 2022, compared to US$59,155,000 at the end of 2021[66] - Net assets decreased to US$262,065,000 as of June 30, 2022, down from US$283,523,000 as of December 31, 2021[69] - The total liabilities of the Group were US$81,693,000 as of June 30, 2022[125] Employee and Operational Insights - The Group employed around 1,000 employees in mainland China and Hong Kong as of 30 June 2022[43] - The Group operates in two segments: the biochemical segment, focusing on chlortetracycline and related products, and the industrial segment, which includes machinery trading and automotive parts manufacturing[98] Related Party Transactions - Sales of goods to C.P. Pokphand Co., Ltd. and its subsidiaries totaled US$1,103,000 for the six months ended June 30, 2022, down from US$1,365,000 in the same period of 2021, representing a decrease of approximately 19.2%[188] - Related party transactions were conducted at prices no more favorable than those offered to independent third-party customers, ensuring compliance with market standards[191] Future Outlook - The Group expects continued challenges in the biochemical business due to ongoing economic pressures from the COVID-19 pandemic[27] - Fixed-asset investment growth in China is anticipated to remain low for the remainder of 2022, with intensified competition expected[27]

Financial Performance - For the three months ended March 31, 2022, the company reported revenue of $39,123,000, an increase of 9.5% from $35,772,000 in the same period last year [2]. - Gross profit for the same period was $9,277,000, compared to $8,800,000, reflecting a gross margin improvement [2]. - The company incurred a net loss of $1,827,000 for the period, a significant decline from a profit of $5,863,000 in the previous year [2]. - Total comprehensive income for the period was $(1,317,000), down from $4,860,000 in the prior year [10]. Assets and Liabilities - Non-current assets totaled $241,006,000, slightly up from $240,738,000 year-over-year [14]. - Current assets decreased to $122,202,000 from $124,478,000, primarily due to changes in inventory and receivables [14]. - Total liabilities increased to $67,341,000 from $59,155,000, indicating a rise in current liabilities [14]. - The company's equity attributable to shareholders decreased to $251,411,000 from $253,059,000 [20]. - The company reported a decrease in cash and cash equivalents to $30,324,000 from $31,093,000 [14]. Accounting Standards - The board confirmed that the new accounting standards adopted did not have a significant financial impact on the financial data [23].

Economic Performance - In 2021, China's GDP growth was 8.1%, influenced by multiple factors including the COVID-19 pandemic and rising commodity prices[6]. - The motorcycle output in China recorded relatively stronger growth, while automobile output showed no pronounced growth due to chip shortages and high transportation costs[12]. - Despite challenges from the COVID-19 pandemic, overseas revenue increased, particularly in North America[27]. Business Operations - The Group maintained a good business condition despite a lackluster market backdrop, focusing on quality and continuous innovation in the chlortetracycline market[6]. - The Group implemented "Six Sigma" in production processes, enhancing efficiency and product quality while promoting automation[9]. - The engineering machinery sector faced significant challenges, with a decline in sales and intensified market competition, leading to a further shrinkage in market share[12]. - The Group's biochemical business focuses on CTC products, which are antibiotics used to prevent or cure animal diseases[25]. - The Group successfully shifted key CTC customers from feed mills to farms in response to the ban on antibiotics as feed additives[25]. Financial Performance - For the year ended December 31, 2021, the Group's revenue increased by 52.2% to US$142.41 million, compared to US$93.58 million in 2020[21]. - Profit attributable to shareholders of the Company was US$19.56 million; excluding the one-off net gain on factory relocation of US$11.03 million, profit decreased to US$8.53 million from US$16.26 million in 2020[21]. - Basic and diluted earnings per share were both US 7.72 cents, up from US 6.42 cents in 2020; excluding the one-off net gain, earnings per share dropped to US 3.37 cents[21]. - Overall gross profit margin declined from 26.6% in 2020 to 24.4% in 2021 due to rising raw material and energy costs[28]. - The share of profit from the joint venture in the industrial business dropped from $12.35 million in 2020 to $4.03 million in 2021[33]. Revenue and Market Contribution - Revenue contribution from China was 49.5%, the Americas 21.5%, Asia Pacific (excluding China) 19.0%, and other regions 10.0%[26]. - The biochemical business revenue increased by 52.2% to $142.41 million in 2021, compared to $93.58 million in 2020[29]. Corporate Governance - The Company maintained strict corporate governance standards throughout 2021, complying with the Corporate Governance Code as per the Listing Rules[59]. - The Board consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors[61]. - The Company adopted a Code of Conduct for Securities Transactions, ensuring compliance with the required standards for dealings in the Company's securities[63]. - The Board oversees the implementation of strategies and reviews operational and financial performance, ensuring a sound risk management system is in place[63]. Risk Management - The Board considers the Group's risk management and internal control systems to be effective and adequate, with sufficient resources, staff qualifications, and training programs[140]. - The Audit Committee conducted an annual review of the effectiveness of the Group's risk management and internal control systems in 2021[143]. - The Group is committed to continuous improvement of its risk management and internal control framework, enhancing integration into business processes[146]. Employee and Community Engagement - The Group actively recruited R&D and sales talent in 2021 to improve human resources structure and overall staff quality[9]. - The Group emphasized social responsibility by conducting charitable events and providing community assistance during the COVID-19 pandemic[9]. - The Company provides various employee benefits, including medical insurance and training, based on performance and market standards[54]. Future Outlook - The outlook for 2022 indicates a challenging year due to uncertainties from new COVID-19 variants and intensified competition in the industrial sector[35]. Board Composition and Diversity - The Company has a diverse board with members holding significant positions in various industries, enhancing its governance and strategic direction[193]. - The Board has adopted a board diversity policy to enhance effectiveness and governance, considering factors such as gender, age, and professional experience in candidate selection[105]. - The Nomination Committee is responsible for identifying and nominating suitably qualified candidates for the Board, ensuring a balance of skills, experience, and diversity[1]. Audit and Financial Oversight - The Audit Committee is responsible for independent oversight of the Group's financial reporting, risk management, and internal control systems[88]. - The total remuneration paid to the external auditor for the year ended December 31, 2021, was US$217,000, which includes US$164,000 for audit services and US$51,000 for review engagements[98].

Financial Performance - For the six months ended June 30, 2021, the Group's revenue was US$63.37 million, an increase of 35.3% compared to US$46.83 million in the first half of 2020[6]. - Profit attributable to shareholders decreased by 42.0% to US$6.72 million in 1H21, compared to US$11.59 million in 1H20[6]. - Revenue for the six months ended June 30, 2021, was US$63,369,000, an increase of 35.2% compared to US$46,829,000 in the same period of 2020[57]. - Profit for the period decreased to US$7,702,000, down 38.5% from US$12,555,000 in the prior year[60]. - Total comprehensive income for the period was US$10,110,000, compared to US$9,623,000 in the previous year, reflecting a 5.1% increase[60]. - The Group's profit before tax was US$8,799,000, with a share of profits from joint ventures amounting to US$5,502,000[111]. - Profit before tax for the six months ended June 30, 2021, was reported at US$6,724,000, a decrease of 42.5% compared to US$11,586,000 for the same period in 2020[154]. Revenue Breakdown - Revenue contribution from China, Asia Pacific (excluding China), Americas, and elsewhere were 50.6%, 21.2%, 19.9%, and 8.3%, respectively[9]. - Revenue from Mainland China was US$32,069,000, significantly up from US$15,579,000 in 2020, representing a growth of 105%[129]. - Total revenue for the biochemical segment was US$63,369,000 for the six months ended June 30, 2021[104]. Cost and Profitability - Gross profit margin declined by 1.5 percentage points to 25.9% in 1H21, down from 27.4% in 1H20[6]. - The cost of inventories sold increased to US$46,955,000, up 37.9% from US$34,020,000 in 2020[143]. - Depreciation of property, plant, and equipment rose to US$3,529,000, compared to US$2,273,000 in the prior year, reflecting a 55.3% increase[143]. Assets and Liabilities - As of June 30, 2021, the Group's total assets increased by 4.2% to US$344.7 million compared to US$330.7 million as of December 31, 2020[27]. - Total current liabilities were US$44,404,000, compared to US$41,713,000 at the end of 2020, representing a 6.5% increase[64]. - Total liabilities as of June 30, 2021, were US$83,951,000, with unallocated corporate liabilities at US$41,866,000[115]. Cash Flow and Financing - Cash flows from operating activities resulted in a net outflow of US$10,629,000 for the first half of 2021, compared to a net inflow of US$5,883,000 in the same period of 2020[83]. - The company reported cash and cash equivalents of US$26,331,000 at the end of the period, down from US$30,525,000 at the end of June 2020, indicating a decrease of 13.1%[83]. - Total borrowings increased to US$35.8 million as of June 30, 2021, from US$20.5 million as of December 31, 2020[30]. Investments and Capital Expenditures - The company incurred US$4,251,000 in capital expenditures for property, plant, and equipment during the first half of 2021, a decrease from US$7,232,000 in the same period of 2020[83]. - The Group's capital expenditure for the period was US$13,384,000[123]. Joint Ventures and Associates - Share of profit from the joint venture ECI Metro declined to US$5.50 million in 1H21, down from US$11.03 million in 1H20[20]. - Share of profit from the associate Zhanjiang Deni increased to US$0.70 million in 1H21, up from US$0.46 million in 1H20[21]. - The Group's share of profits from joint ventures was US$11,031,000, while profits from associates were US$460,000, contributing to a total segment result of US$14,124,000[119]. Operational Changes and Market Response - The Group successfully shifted its key CTC customer group from feed mills to farms in response to regulatory changes regarding antibiotic use[15]. - Despite logistic issues due to COVID-19, the Group managed to increase orders from North America, maintaining stable overall overseas revenue compared to 1H20[16]. Employee and Corporate Structure - The Group employed around 900 employees in mainland China and Hong Kong as of June 30, 2021[41]. - The immediate holding company is Charoen Pokphand Foods Public Company Limited, which is listed on the Stock Exchange of Thailand[87]. Future Outlook - The Group remains cautious about its performance for the remainder of the year due to uncertainties from COVID-19 and intense competition in the construction machinery industry[26]. - A net gain attributable to shareholders of approximately US$12.4 million is expected to be recorded in the second half of 2021 from a relocation compensation agreement completed in July 2021[198].

Financial Performance - In 2020, the revenue of Chia Tai Enterprises International Limited decreased to US$93,577,000 from US$105,042,000 in 2019, representing a decline of approximately 10.5%[19] - The gross profit for 2020 was US$24,898,000, down from US$28,948,000 in 2019, indicating a decrease of about 13.8%[19] - Profit attributable to shareholders increased slightly to US$16,255,000 in 2020 from US$15,800,000 in 2019, reflecting a growth of approximately 2.9%[19] - Basic and diluted earnings per share rose to 6.42 US cents in 2020, compared to 6.24 US cents in 2019, marking an increase of about 2.9%[21] - For the year ended December 31, 2020, the Group's revenue decreased by 10.9% to US$93.58 million compared to US$105.04 million in 2019[25] - Profit attributable to shareholders of the Company grew by 2.9% to US$16.26 million, up from US$15.80 million in 2019[25] - The average selling price of CTC premix decreased by approximately 2.2% in 2020 compared to 2019, while the average selling price of CTC HCL declined by 5.7%[30] - The Group's gross profit margin reduced slightly from 27.6% in 2019 to 26.6% in 2020[30] Assets and Liabilities - Total assets increased to US$330,698,000 in 2020 from US$292,657,000 in 2019, showing a growth of approximately 13%[19] - The Group's net cash as of December 31, 2020, was US$11.8 million, down from US$21.8 million as of December 31, 2019[41] - Total borrowings increased to $20.5 million as of December 31, 2020, compared to $16.0 million as of December 31, 2019[50] - Secured borrowings accounted for 73.5% of total borrowings, down from 82.0% in the previous year[50] - Cash and cash equivalents decreased by $5.5 million to $32.3 million as of December 31, 2020, from $37.8 million as of December 31, 2019[47] Operational Challenges and Strategies - The agricultural sector faced challenges from COVID-19, African swine fever, and avian flu, prompting the Group to focus on quality control and product differentiation[7] - Looking ahead, the Group aims to ensure product quality and comply with environmental regulations while addressing uncertainties in the operating environment[13] - The Group continued to enhance its R&D capabilities and foster high-end talent, launching various research projects to improve competitive edge[6] - The Group implemented "Six Sigma" management and automation initiatives to optimize operational efficiency and production safety[6] Governance and Management - The Company held one annual general meeting, one special general meeting, six Board meetings, three Audit Committee meetings, two Remuneration Committee meetings, one Nomination Committee meeting, and two Corporate Governance Committee meetings in 2020[68] - Each Director participated in continuous professional development through attending trainings organized by the Company and other professional organizations in 2020[67] - The Directors confirm that they are not aware of any material uncertainties that may cast significant doubt upon the Company's ability to continue as a going concern[87] - The Board is responsible for presenting a balanced, clear, and understandable assessment of the Company's performance in the annual and interim reports[85] - The financial statements must reflect the financial position, performance, and cash flows of the Group in accordance with International Financial Reporting Standards[86] - The Company has adopted a Code of Conduct for Securities Transactions based on the required standards set out in the Listing Rules[68] Risk Management - The Group has established a risk management policy to manage risks associated with achieving business objectives and provides reasonable assurance against material misstatement or loss[133] - The Board has delegated the responsibility of reviewing the effectiveness of the Group's risk management and internal control systems to the Audit Committee, which monitors these systems through the Internal Audit Department[133] - In 2020, the Audit Committee conducted an annual review of the effectiveness of the Group's risk management and internal control systems, and the Board considers these systems to be effective and adequate[136] - The Group is committed to continuous improvement of its risk management and internal control framework, enhancing integration into business processes[138] Board Composition and Diversity - The Company has a diverse board with members having extensive experience across various industries and regions[175] - The Board has adopted a board diversity policy to enhance effectiveness and governance, considering factors such as gender, age, and professional experience[109] - The Nomination Committee is responsible for identifying and nominating suitably qualified candidates for directorships to fill casual vacancies and new Board members[119] - The selection criteria for candidates include character, qualifications, and capacity to devote sufficient time to duties[120] - The Company recognizes the importance of board diversity to strengthen governance and effectiveness[109] Shareholder Communication and Dividend Policy - The board has established a shareholder communication policy to ensure timely and open communication with shareholders[162] - The Company has adopted a dividend policy that considers operational results, financial conditions, and future development, with no dividends expected during growth stages unless special circumstances arise[91] - The Company emphasizes that dividends will only be declared from profits and reserves lawfully available for distribution[91] - The Company’s future dividend declarations will be at the Board's discretion and may not reflect historical patterns[91]

Financial Performance - For the six months ended June 30, 2020, the Group's revenue was US$46.83 million, a decrease of 7.1% compared to US$50.42 million in the first half of 2019[6]. - Gross profit margin declined by 2.4 percentage points to 27.4% in 1H20, down from 29.8% in 1H19[6]. - Profit attributable to shareholders increased by 2.5% to US$11.59 million in 1H20, compared to US$11.30 million in 1H19[6]. - Total comprehensive income for the period was US$9,623,000, a decrease of 23.4% from US$12,593,000 in the previous year[58]. - Profit for the period attributable to shareholders was US$11,586,000, compared to US$11,300,000 in 2019, representing an increase of 2.5%[60]. - Cash generated from operations was US$6,919,000, compared to a cash outflow of US$6,826,000 in the same period last year, indicating a turnaround in operational cash flow[87]. - The company did not declare an interim dividend for the six months ended June 30, 2020, consistent with the previous year[157]. Revenue Breakdown - Revenue contribution from different regions in 1H20: China (33.3%), Asia Pacific (30.4%), North America (11.5%), Europe (10.6%), and others (14.2%)[9]. - Segment revenue from external customers amounted to US$46,829,000, a decrease from US$50,420,000 in the same period last year, representing a decline of approximately 3.1%[134]. - Revenue from contracts with customers is recognized when the customer obtains control of the promised goods, specifically upon delivery to the customer's premises for domestic sales[106]. - Revenue from mainland China was US$15,579,000, while revenue from the Asia Pacific (excluding mainland China) was US$14,250,000[134]. Assets and Liabilities - As of June 30, 2020, the Group had total assets of US$294.6 million, an increase of 0.7% from US$292.7 million as of December 31, 2019[26]. - Total current assets decreased to US$80,748,000 from US$91,280,000, a decline of 11.5%[64]. - Total liabilities decreased from US$39,237,000 to US$36,293,000, a reduction of 7.5%[67]. - The Group's total liabilities stood at US$62,584,000, with segment liabilities of US$46,238,000[113]. Cash and Financing - The Group had net cash of US$19.6 million as of June 30, 2020, down from US$21.8 million as of December 31, 2019[26]. - The Group's cash and cash equivalents decreased by US$7.3 million to US$30.5 million as of June 30, 2020, from US$37.8 million as of December 31, 2019[32]. - Total borrowings decreased to US$11.0 million as of June 30, 2020, down from US$16.0 million as of December 31, 2019[29]. - The Group's net cash position, defined as cash minus bank borrowings, was US$19.6 million as of June 30, 2020, compared to US$21.8 million as of December 31, 2019[31]. Operational Challenges - The Group expects to face headwinds in both its biochemical and industrial businesses due to global economic instability and COVID-19[25]. - The Group anticipates ongoing challenges in its biochemical and industrial businesses in the coming quarters due to global economic instability and the impact of COVID-19[30]. Investments and Capital Expenditure - The Group did not hold any significant investments or engage in material acquisitions or disposals during the period[38]. - Capital expenditure for the period was US$7,578,000, indicating ongoing investment in operations[110]. Employee and Organizational Structure - The Group employed approximately 800 employees in the PRC and Hong Kong as of June 30, 2020[39]. - The Group is organized into two reportable operating segments: biochemical and industrial, with performance evaluated based on reportable segment profit[99]. Related Party Transactions - The Group had sales of goods to related parties amounting to US$1,091,000 for the six months ended June 30, 2020, compared to US$1,432,000 in the same period of 2019, reflecting a decrease of 23.9%[193]. - The pricing for products sold to related parties is determined based on raw material costs, added value, reasonable profit margins, market demand, and competitive pricing from independent third-party suppliers[198].

Financial Performance - In 2019, the company's revenue increased to US$105,042,000, up from US$93,362,000 in 2018, representing a growth of approximately 12.5%[17] - Gross profit for 2019 was US$28,948,000, compared to US$27,254,000 in 2018, reflecting a growth of about 6.2%[17] - Profit attributable to shareholders decreased to US$15,800,000 in 2019 from US$21,164,000 in 2018, a decline of approximately 25.5%[17] - Basic and diluted earnings per share fell to 6.24 US cents in 2019 from 8.35 US cents in 2018, a decrease of about 25.3%[17] - The gross profit margin decreased to 27.6% in 2019 from 29.2% in 2018[25] - Revenue contribution from China accounted for 40.3%, while Asia Pacific (excluding China), North America, Europe, and others contributed 27.1%, 11.9%, 11.0%, and 9.7% respectively[28] - The share of profits from the joint venture ECI Metro declined to US$11.62 million in 2019 from US$17.97 million in 2018[41] - Zhanjiang Deni's share of profits was US$1.92 million in 2019, slightly up from US$1.88 million in 2018[42] Assets and Liabilities - Total assets increased to US$292,657,000 in 2019, up from US$267,712,000 in 2018, marking a growth of approximately 9.3%[17] - The company’s total bank borrowings rose to US$15,951,000 in 2019 from US$11,631,000 in 2018, an increase of about 37.5%[17] - The Group's net cash decreased to US$21.8 million as of December 31, 2019, down from US$41.8 million as of December 31, 2018[48] - Total borrowings increased to US$16.0 million as of December 31, 2019, compared to US$11.6 million as of December 31, 2018[49] - 82.0% of the Group's total borrowings, amounting to US$13.1 million, were secured as of December 31, 2019[49] - The Group's cash and cash equivalents decreased by US$15.6 million to US$37.8 million as of December 31, 2019, from US$53.4 million as of December 31, 2018[48] Operational Initiatives - The Group focused on product and technological innovation, obtaining several advanced technology patents to prepare for the upcoming ban on antibiotics in animal feed additives[4] - The Group implemented "Six Sigma" management and a series of automation initiatives, resulting in reduced energy consumption and improved production efficiency[6] - The Group emphasized sustainable development by enhancing safety management and transforming waste reduction and sewage treatment systems[8] Market Conditions - The excavator industry entered a steady development phase in 2019, influenced by overall economic slowdown and increased competition from local brands[9] - The biochemical business is expected to face strong headwinds in 2020 due to the African swine fever outbreak and a ban on antibiotics as growth promoters in China[43] - The Group's industrial business, particularly ECI Metro, is expected to face an uncertain future in 2020 due to slowed fixed-asset investment growth in China[48] Corporate Governance - The Company held one annual general meeting, six Board meetings, three Audit Committee meetings, two Remuneration Committee meetings, one Nomination Committee meeting, and two Corporate Governance Committee meetings in 2019[70] - The Directors confirmed their responsibility for preparing financial statements that reflect the Group's financial position and performance in accordance with International Financial Reporting Standards[76] - The Company has adopted a Code of Conduct for Securities Transactions, ensuring compliance with the required standards set out in the Listing Rules[70] - The Board is responsible for presenting a balanced and clear assessment of the Company's performance in annual and interim reports[76] - The Company has established a sound system of risk management and internal control[69] Risk Management - The Group has established a risk management policy to manage risks associated with achieving business objectives and provides reasonable assurance against material misstatement or loss[132] - The Board is responsible for the Group's risk management and internal control systems, overseeing their design, implementation, and monitoring[132] - In 2019, the Audit Committee conducted an annual review of the effectiveness of the Group's risk management and internal control systems, which the Board considers effective and adequate[132] - The Group has adequate resources, staff qualifications, training programs, and budget for accounting, internal audit, and financial reporting functions[132] Shareholder Communication - The company maintained a shareholders' communication policy to ensure timely and open communication with shareholders[157] - Shareholders holding not less than one-tenth of the paid-up capital can submit a written requisition to the Board for convening a special general meeting[139] - Members representing not less than one-twentieth of the total voting rights can submit a written requisition to propose resolutions at general meetings[147] Leadership and Management - The company has a strong leadership team with extensive experience in multinational investment and management across various industries[159][160] - The Chairman, Mr. Soopakij Chearavanont, has been with the company since September 2014 and holds significant positions in other major companies[159] - The CEO of the Industrial Division, Mr. Thanakorn Seriburi, has been with the company since 1988 and has extensive experience in investment projects in China[161] - The CEO of the Biochemical Division, Mr. Thirayut Phityaisarakul, has been with the company since September 2014 and has a strong management background[160] Product and Market Risks - The Group is primarily engaged in the manufacture and sale of chlortetracycline (CTC) products, with significant involvement in trading machinery and manufacturing automotive parts through joint ventures and associated companies[185] - Sales of CTC Premix account for a substantial portion of the Group's revenue, indicating reliance on this key product for financial performance[190] - The principal raw materials for CTC products include corn starch, yeast, peanut meal, and soybean meal, with their prices being subject to volatility due to external factors like weather and demand surges[191] - Disruptions in the supply of raw materials or significant price increases could materially affect the Group's financial condition and operating results[192] - The Group faces intense competition from other CTC producers, which may impact market share and revenue[193]

Financial Performance - For the six months ended June 30, 2019, the Group's revenue was US$50.42 million, an increase of 18.5% compared to the first half of 2018[6]. - Gross profit margin for 1H19 was 29.8%, slightly up from 29.6% in 1H18[6]. - Profit attributable to shareholders decreased by 20.5% to US$11.30 million in 1H19, primarily due to a decrease in share of profit from ECI Metro[6]. - Revenue for the six months ended June 30, 2019, was US$50,420,000, an increase of 18.5% compared to US$42,560,000 in the same period of 2018[53]. - Profit before tax decreased to US$13,694,000, down 12.9% from US$15,712,000 in the previous year[53]. - Profit for the period was US$12,428,000, a decline of 16.8% compared to US$14,954,000 in 2018[53]. - Total comprehensive income for the period was US$12,593,000, compared to US$11,303,000 in the same period of 2018, reflecting an increase of 11.4%[53]. - The Group anticipates that unsatisfactory results in the first half of 2019 will worsen in the second half of the year[25]. - The slowdown in the industrial business is expected to continue[25]. Revenue Sources - Revenue contribution from China, Asia Pacific (excluding China), North America, Europe, and elsewhere were 32.6%, 30.6%, 14.0%, 13.4%, and 9.4%, respectively[9]. - The overseas market, particularly Europe and Asia Pacific (excluding China), was the major revenue growth driver during the review period[15]. - Revenue from external customers in mainland China was US$16,373,000, a decrease from US$17,737,000 in the same period of 2018[122]. Assets and Liabilities - Total assets as of June 30, 2019, were US$281.2 million, an increase of 5.0% from US$267.7 million as of December 31, 2018[25]. - Total liabilities as of June 30, 2019, were US$59,064,000, compared to US$58,166,000 at the end of 2018[119]. - Total equity increased to US$222,139,000 as of June 30, 2019, compared to US$209,546,000 at the end of 2018[63]. Cash Flow and Investments - Net cash as of June 30, 2019, was US$25.3 million, down from US$41.8 million as of December 31, 2018[25]. - Cash and cash equivalents decreased to US$36.9 million as of June 30, 2019, from US$53.4 million as of December 31, 2018, a decrease of US$16.5 million[28]. - The company invested $9,633,000 in property, plant, and equipment during the first half of 2019, an increase from $5,271,000 in the prior year[78]. - The Group's capital commitments for property, plant, and equipment as of June 30, 2019, were US$22,351,000, compared to US$16,863,000 as of December 31, 2018, representing a 32.5% increase[176]. Joint Ventures and Associates - Share of profits from joint venture ECI Metro decreased by 28.6% to US$9.07 million in 1H19[19]. - Share of profits from associate Zhanjiang Deni reduced by 28.2% to US$0.95 million in 1H19[20]. - The Group's investments in joint ventures amounted to US$99,673,000, while investments in associates were US$19,857,000[110]. Market Challenges - The spread of African swine fever in China has led to a reduced demand for CTC products domestically[16]. - The biochemical business is expected to face strong headwinds due to the African swine fever outbreak in China, significantly reducing the demand for animal health/nutrition products[25]. Employee and Operational Information - The Group employed around 800 employees in the PRC and Hong Kong as of June 30, 2019[37]. - The Group operates in two reportable segments: the biochemical segment, primarily engaged in the manufacture and sale of chlortetracycline products, and the industrial segment, involved in trading machinery and manufacturing automotive parts[96][101]. Financial Reporting and Compliance - The Group's financial report is prepared in accordance with International Financial Reporting Standards (IFRS), consistent with the annual financial statements for the year ended December 31, 2018[84][86]. - The adoption of new accounting standards, including IFRS 16 Leases, has had no significant financial effect on the interim financial report[89][92]. - The Group's financial disclosures comply with the requirements set forth in the Securities and Futures Ordinance and the Listing Rules[193].