Financial Performance - The company reported a net profit margin of 12% for the fiscal year 2023, reflecting improved operational efficiency[4]. - The group recorded a one-time gain of approximately HKD 477 million from the transfer of the subsidiary Dihao Company, significantly improving annual performance and reducing overall debt[26]. - The group reported a net profit attributable to owners of approximately HKD 289,500,000 for the year, a significant improvement from a net loss of HKD 212,500,000 in 2022, due to increased gross profit and recognition of discontinued operations income[53]. - The company reported a significant increase in revenue, achieving a total of 20 million in 2023, representing a growth of 15% compared to the previous year[81]. - In the 2023 fiscal year, the company's sales volume increased by approximately 34.9% to about 116,000 tons, and total revenue rose by 22.6% to approximately HKD 440.8 million[38]. Debt and Financing - The company has outstanding loans totaling RMB 212,500,000 from Jinzhou Bank Tiebei Branch and RMB 188,700,000 from Jinzhou Construction Bank as of December 31, 2023[19]. - The group plans to issue convertible bonds totaling RMB 120 million to alleviate financial conditions and fund the first phase of production recovery at the Jinzhou facility[27]. - The company has agreed to repay RMB 88,000,000 to Jilin Xinda as part of a debt restructuring agreement, which will relieve the company of further repayment obligations to Yuan Cheng Construction Bank[72]. - The company plans to use RMB 60,000,000 from the convertible bond proceeds for repayment to creditors and the remaining for the resumption of production at the Jinzhou facility[127]. - The group is negotiating with banks in China to secure new financing to meet its funding needs, with a proposed loan of RMB 70 million from Shanghai Nanyang and Shanghai Minhang Bank[134]. Strategic Initiatives - The company aims to enhance its market presence through strategic acquisitions and partnerships in the next fiscal year[4]. - The company is focusing on expanding its product offerings in the health and wellness sector to capture emerging market trends[4]. - The company plans to optimize production, maintain market share, and enhance its product portfolio while focusing on high-value product development and strategic business alliances[73]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% increase in market share by 2025[87]. - A strategic acquisition of a local competitor is in progress, expected to enhance production capacity by 30%[86]. Corporate Governance - The board emphasized the importance of corporate governance, aiming to maintain high standards to boost investor confidence[86]. - The company has adopted a new compliance framework, ensuring adherence to all regulatory requirements and enhancing operational transparency[87]. - The company has established a corporate governance committee to review and monitor compliance with corporate governance policies and practices[149]. - The company has implemented a dual chair structure with two co-chairmen to enhance corporate governance and clarify roles[116]. - The board has established measurable targets for diversity, including specific ratios for independent non-executive directors and members with professional qualifications[104]. Operational Efficiency - The group aims to enhance operational efficiency by restoring production facilities in Jinzhou and diversifying its product offerings to improve sales revenue[29]. - The company has taken measures to reduce operating costs and has developed new product lines to enhance cash flow, while increasing production capacity at the Shanghai facility[129]. - The internal audit department plays a key role in monitoring the group's governance and reports directly to the audit committee, ensuring effective internal control systems are in place[170]. - The company has implemented a three-line defense model for operational risk management, clarifying responsibilities across management levels[163]. - The company has complied with relevant codes regarding internal control and risk management as per the corporate governance code, confirming the effectiveness of its internal control procedures[171]. Market Trends - Sugar prices are expected to remain high in 2024, while corn prices have started to decline, potentially lowering overall production costs[29]. - The overall retail sales in China increased by 7.2% year-on-year, although consumer confidence remains low due to various economic pressures[32]. - The international monetary fund forecasts a global economic growth rate of 3.1% for 2024, with China's GDP growth target set at 5%[29]. - The company is committed to sustainable practices, with initiatives aimed at reducing carbon emissions by 25% over the next five years[86]. - The company continues to prioritize gender diversity in recruitment to ensure potential successors maintain this diversity[103]. Shareholder Communication - The company has established various communication channels with shareholders, including annual and interim reports published on the stock exchange and a dedicated website[156]. - The company has a public website to disclose operational and financial information, enhancing transparency with stakeholders[156]. - The company has conducted a review of its shareholder communication policy, which has been effectively implemented during the year[158]. - The company will hold its next annual general meeting on June 20, 2024, to approve the audited consolidated financial statements for 2023 and re-elect directors[159]. - The company has established a mechanism to ensure strong independence of the board, which is reviewed annually for effectiveness[92].

Financial Performance - Total revenue for the year ended December 31, 2023, was HKD 440,813,000, an increase of 22.6% from HKD 359,567,000 in 2022[3] - Gross profit for the same period was HKD 36,618,000, up 34.4% from HKD 27,267,000 in the previous year[3] - The company reported a loss from continuing operations before tax of HKD 144,187,000, slightly improved from a loss of HKD 148,838,000 in 2022[3] - The net loss for continuing operations for the year was HKD 139,820,000, compared to a loss of HKD 141,407,000 in 2022[3] - The profit from discontinued operations was HKD 429,336,000, a significant recovery from a loss of HKD 71,084,000 in the previous year[4] - The total comprehensive income for the year was HKD 299,112,000, compared to a loss of HKD 180,392,000 in 2022[4] - Basic earnings per share from discontinued operations was HKD 0.281, compared to a loss of HKD 0.046 in 2022[5] - The total profit for the year ending December 31, 2023, was HKD 289,516,000, a significant improvement compared to a loss of HKD 212,491,000 in the previous year[41][43] - The company recorded a net loss of HKD 139.8 million for the year, slightly improved from a loss of HKD 141.4 million in the previous year[112] - The company recorded a net profit attributable to owners of approximately HKD 289.5 million for the year, compared to a net loss of approximately HKD 212.5 million in 2022[114] Assets and Liabilities - Non-current assets decreased to HKD 352,842,000 from HKD 564,862,000 in 2022, reflecting a reduction in property, plant, and equipment[7] - Current liabilities decreased to HKD 956,860,000 from HKD 1,329,029,000 in the previous year, indicating improved liquidity[7] - As of December 31, 2023, the group recorded a net current liability of approximately HKD 734.3 million, down from HKD 1,206.8 million on December 31, 2022[15] - The company's total assets decreased from HKD 611,280,000 in 2022 to HKD 312,325,000 in 2023, representing a decline of approximately 48.9%[64] - Total borrowings decreased by approximately HKD 354.5 million to about HKD 440.9 million as of December 31, 2023, down from HKD 795.4 million in 2022[116] - The net borrowing value decreased to approximately HKD 427.3 million, compared to HKD 791.1 million as of December 31, 2022[116] - The capital debt ratio improved to approximately 76.6%, down from 115.8% as of December 31, 2022, primarily due to the completion of the transaction with Empire[120] Cash Flow and Financing - The group has implemented measures to monitor operating cash flow and reduce operating costs during market volatility, while also developing new product lines to enhance cash inflow[18] - The group has received a confirmation letter from the new controlling shareholder, ensuring financial support for the next 12 months without requiring collateral from the group's assets[20] - A debt restructuring agreement was established to repay RMB 88 million to China Construction Bank, significantly improving the group's financial condition in 2024[21] - The group is in discussions with banks to secure new financing, with a total loan amount of RMB 70 million agreed upon by two banks as of March 21, 2024[23] - The company has agreed to repay a total of RMB 88,000,000 to Jilin Xinda as part of a debt restructuring agreement by January 26, 2024, which will clear the remaining obligations under the Yuan Cheng Construction Bank loan[137] Operational Performance - The adjusted profit before tax for the corn refining products segment was a loss of HKD 72,791,000 for the year ending December 31, 2023, compared to a loss of HKD 50,100,000 in the previous year, indicating a decline in performance[41][43] - The company completed the sale of its corn sweetener business, which has been classified as discontinued operations, resulting in a gain of HKD 476,997,000 from the sale[41] - The company has two reportable operating segments: corn refining products and corn sweeteners, with the latter now classified as discontinued operations following the recent sale[39][41] - The company’s management has independently monitored the performance of each operating segment to make resource allocation and performance evaluation decisions[39] - The company is focusing on optimizing production, enhancing its product mix, and developing high-value products to maintain competitiveness and market share[138] Market and Economic Conditions - The overall economic recovery in China remains fragile, with consumer confidence low and retail sales increasing by only 7.2% year-on-year[94] - The company’s upstream corn refining sector faced significant challenges, leading to continued operational suspensions[97] - The global corn production for the 2023/24 season is estimated at 1,235,700,000 tons, marking a historical high and contributing to price declines[95] - China's corn imports surged by 31.6% in 2023, totaling 27,130,000 tons, compared to 20,620,000 tons in 2022[95] - The average spot price of corn in China decreased from nearly RMB 3,000 per ton to RMB 2,560 per ton by the end of 2023[95] Corporate Governance and Reporting - The Audit Committee, composed entirely of independent non-executive directors, reviewed the group's financial reporting procedures and risk management, holding three meetings during the year[148] - The company's annual report, including information required by listing rules, will be published on its website and the stock exchange's website at an appropriate time[149] - The 2023 Annual General Meeting is scheduled for June 20, 2024, at 10:30 AM[150] - Share transfer registration will be suspended from June 14, 2024, to June 20, 2024, to determine shareholder rights for attending the Annual General Meeting[151] - Shareholders must ensure that all transfer documents are submitted by June 13, 2024, at 4:30 PM to qualify for attending the Annual General Meeting[153] - The auditor confirmed that the financial statements for the year align with the figures presented in the announcement[154]

Financial Performance - Revenue for the first half of 2023 increased by 25.0% to approximately HKD 193.7 million compared to HKD 155.0 million in the same period of 2022[6]. - Gross profit rose significantly by 78.6% to HKD 20.0 million from HKD 11.2 million year-on-year[6]. - The net loss for the period narrowed to HKD 83.9 million, an improvement from a loss of HKD 117.5 million in the previous year[6]. - The group's sales volume increased by approximately 33.3% to about 48,000 tons, and total revenue rose by 25.0% to approximately HKD 193.7 million during the reporting period[37]. - The group's gross profit surged by approximately 78.6% to about HKD 20 million, with a gross margin increase of 3.1 percentage points to 10.3%[37]. - The net loss narrowed to approximately HKD 83.9 million, down from HKD 117.5 million in the previous year, with LBITDA improving to approximately HKD 32.6 million[38]. - The company reported a loss before tax of HKD 103,405,000, compared to a loss of HKD 117,503,000 in the previous year, indicating a reduction in losses[106]. - The company’s total comprehensive loss for the period was HKD 23,783,000, compared to HKD 100,379,000 in the same period last year, showing a significant reduction in overall losses[106]. - The basic and diluted loss per share for the period was HKD 0.055, an improvement from HKD 0.077 in the previous year[106]. - The company reported a total loss of HKD 83,939,000 for the six months ended June 30, 2023, compared to a loss of HKD 117,503,000 in the same period of 2022[131]. Restructuring and Debt Management - The restructuring plan is progressing, including the sale of a 47.0% stake in a subsidiary and the transfer of interests in certain products, which is expected to alleviate overall debt[13]. - The company anticipates completing its restructuring plan within the year, which will help consolidate its financial position and reduce liabilities[15]. - The company plans to utilize funds from the issuance of convertible bonds to address outstanding debts and enhance operational capabilities[15]. - The group is exploring various funding options to advance the next phase of its debt restructuring plan with support from the Jilin Provincial Government[40]. - The group plans to raise approximately RMB 1.5 billion to RMB 1.6 billion from potential investors for debt restructuring, including the repurchase of loans from Agricultural Bank of China[31]. - The company is simplifying its corporate structure to facilitate debt restructuring, with outstanding loans totaling approximately RMB 1,400,000,000 being transferred to a third party[28]. - The company has outstanding loans totaling approximately RMB 188,700,000 from Jinzhou Construction Bank, which are currently overdue[100]. - The company has also failed to repay a loan of RMB 180,000,000 from Agricultural Bank of China, which may trigger cross-default clauses in other loan agreements[100]. - The total outstanding principal amount of loans owed by the group as of June 30, 2023, is approximately RMB 401.2 million, with RMB 212.5 million intended to be financed through ongoing business operations and future cash flows[125]. - The company plans to issue convertible bonds to raise RMB 120 million (approximately HKD 138 million) as part of its restructuring efforts, with an initial conversion price set at HKD 0.1 per share[117]. Market Conditions and Economic Outlook - The economic outlook for the second half of 2023 remains cautious due to weak consumer demand and ongoing geopolitical tensions[15]. - The global economic growth forecast for 2023 has been revised down to 2.7%, impacting consumer confidence and demand in China[19]. - The youth unemployment rate in China reached a historical high of 21.3% in June 2023, further straining consumer sentiment[19]. Production and Sales - The company’s production and sales volume increased significantly due to the resumption of operations at its Shanghai production base[12]. - Revenue from corn syrup increased by approximately 30.7% to about HKD 175,900,000 (2022: HKD 134,600,000), driven by a 38.7% increase in sales volume to approximately 43,000 tons (2022: 31,000 tons) following the resumption of operations at the Shanghai production base[42]. - Solid corn syrup sales decreased by approximately 12.7% to HKD 17,800,000 (2022: HKD 20,400,000), with a gross profit of HKD 2,100,000 (2022: HKD 3,100,000) and a gross margin of 11.8% (2022: 15.2%) due to price declines[44]. Corporate Governance - The company is committed to enhancing internal controls and compliance with corporate governance codes to ensure transparency and accountability[37]. - The audit committee consists of three independent non-executive directors, ensuring compliance with financial reporting and risk management procedures[83]. - The corporate governance committee has reviewed the company's governance policies and confirmed compliance with the corporate governance code, except for a deviation regarding the dual role of Mr. Wang Guicheng[87]. - The company is committed to maintaining high levels of corporate governance to protect shareholder interests[82]. Employee and Operational Metrics - As of June 30, 2023, the group employed approximately 840 full-time employees, a decrease from 920 employees on June 30, 2022[68]. - Employee benefits expenses (excluding directors' remuneration) were approximately HKD 32,900,000 for the period, down from HKD 41,100,000 in 2022[68]. - Administrative expenses rose by approximately 7.3% to about HKD 46,900,000 (2022: HKD 43,700,000), attributed to professional fees related to restructuring[48]. Shareholder and Equity Information - Major shareholders, including Jilin Provincial State-owned Assets Supervision and Administration Commission, hold a significant stake of 64.04% in the company[76]. - The total issued share capital of the company as of June 30, 2023, is 1,527,586,000 shares[81]. - The company has a 35.2% ownership interest held by Modern Agriculture, which is fully owned by Modern Agriculture Holdings[81]. - The board did not recommend any dividend distribution for the current period, consistent with the previous period[70].

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 部分內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 GLOBAL SWEETENERS HOLDINGS LIMITED 大 成 糖 業 控 股 有 限 公 司 * （於開曼群島註冊成立的有限公司） （股份代號：03889） 截至 年 月 日止六個月 2023 6 30 中期業績公告 財務摘要 截至6月30日止六個月 2023年 2022年 變動% （未經審核）（未經審核） 收益（百萬港元） 193.7 155.0 25.0 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容 而產生或因依賴該等內容而引致的任何損失承擔任何責任。 GLOBAL SWEETENERS HOLDINGS LIMITED * 03889 債務重組計劃的最新狀況及 有關截至二零二二年十二月三十一日止年度的年報的補充公告 謹此提述大成糖業控股有限公司（「本公司」，連同其附屬公司統稱「本集團」）截至二零二 二年十二月三十一日止年度（「該年度」）的年報（「該年報」）。除文義另有所指外，本公告 所用詞彙與該年報所界定者具有相同涵義。 債務重組計劃的最新狀況 本公司謹此就該年報所披露的債務重組計劃向其股東提供最新及進一步資料。 誠如本公司與大成生化科技集團有限公司（「大成生化」，連同其附屬公司但不包括本集 團，統稱「大成生化集團」）於日期為二零二零年十二月二十三日及二零二一年三月二十六 日的聯合公告所披露，作為本集團債務重組計劃的一部分，本集團的主要貸款銀行已將 ...

Financial Performance - In 2022, the company's revenue decreased by 50.6% to HKD 359.6 million from HKD 728.1 million in 2021[4] - The gross profit for 2022 was HKD 27.3 million, down 34.4% from HKD 41.6 million in 2021[4] - The company reported a loss of HKD 212.5 million for the year, compared to a loss of HKD 96.3 million in 2021[4] - The basic loss per share increased to HKD 13.9 from HKD 6.3 in the previous year[4] - The group reported a significant decline in sales volume by 51.7% to 86,000 tons for the year, down from 178,000 tons in 2021[32] - Revenue decreased by approximately 50.6% to around HKD 359.6 million, compared to HKD 728.1 million in 2021, while gross profit fell by 34.4% to HKD 27.3 million from HKD 41.6 million[32] - The group recorded a net loss of HKD 212.5 million for the year, compared to a net loss of HKD 96.3 million in 2021, and an LBITDA of approximately HKD 74.6 million[33] - Other income and gains decreased by approximately 88.8% to about HKD 16,300,000 (2021: HKD 145,700,000) due to the absence of one-time gains recorded in the previous year[41] - The group recorded a net loss attributable to shareholders of approximately HKD 212,500,000 (2021: HKD 96,300,000) due to reduced gross profit and other income[48] Operational Challenges - The company's production facilities in Shanghai were shut down for nearly two months due to lockdown measures, impacting sales volume and revenue significantly[12] - The group has suspended operations at certain production facilities to minimize financial risks during uncertain economic conditions[32] - The restructuring is expected to provide additional funds to repay loans and improve working capital, preparing for the resumption of operations at the Jinzhou production base[29] - Financial risks include liquidity risks due to production halts, with measures such as resource integration for higher efficiency[163] Strategic Initiatives - The company plans to focus resources on its sweetener business in Jinzhou and Shanghai following a strategic restructuring involving the sale of 47.0% equity to Da Cheng Biochemical Group[13][14] - The management team is focused on accelerating the restructuring of Da Cheng Sugar Industry, which is expected to significantly improve the financial condition of the group by the end of 2023[16] - The group anticipates a return to operational growth and efficiency improvements following the restructuring, with a focus on the Jinzhou production base's resumption based on market demand and cash flow considerations[16] - The company aims to expand its product range by developing sweeteners that align with health trends and consumer preferences[15] - The company plans to maintain a balance between robust cash flow and market share while closely monitoring market conditions and financial status for strategic decision-making[24] - The company plans to optimize production and maintain market share while enhancing its product portfolio and developing high-value products and new applications[70] Market Conditions - Economic recovery in China is expected to support domestic sugar prices, despite anticipated downward pressure from rising global sugar production[15] - The global corn production for the 2022/23 season is estimated at 1,151.4 million tons, a decrease from 1,216 million tons in the previous season, impacting corn prices[21] - International corn prices peaked at $8.18 per bushel in April 2022, dropping to $6.785 per bushel by the end of 2022, reflecting a significant price fluctuation[21] - China's domestic corn production for the 2022/23 season is projected at approximately 277.2 million tons, with consumption expected to reach 286.6 million tons, leading to continued imports to address supply shortages[21] - The sugar market saw a slight surplus in the 2021/22 season, with global production at 180.3 million tons and consumption at 173.2 million tons, while international sugar prices rose to $0.1891 per pound by the end of 2022[23] - China's sugar production for the 2022/23 season is expected to increase to 10.1 million tons, while consumption is estimated at 15.6 million tons, indicating a potential improvement in demand[24] Governance and Management - The company has adopted a set of strict codes of conduct for directors' securities trading, ensuring compliance with the standards set forth in the Listing Rules[84] - The board consists of five directors, including two executive directors and three independent non-executive directors, with no significant relationships among them[89] - The company has established a mechanism to ensure strong independence of the board, which is reviewed annually for effectiveness[89] - The company recognizes the benefits of a diverse board and has adopted a diversity policy to enhance board composition across various dimensions[96] - The company has a process in place to review the independence of independent non-executive directors at least annually, confirming their status through independent declarations[95] - The attendance record of directors at board meetings and committees shows full participation, indicating strong governance practices[85] - The company has mechanisms to seek external independent professional advice to ensure directors receive independent opinions[94] - The board has adopted a written policy for the nomination of new directors, ensuring a structured approach to board appointments[131] - The company is committed to maintaining effective risk management and internal control systems as part of its governance framework[119] Shareholder Relations - The company maintains communication with shareholders through annual and interim reports, as well as investor meetings, ensuring transparency in operations and financial performance[146] - The total number of shares held by Da Cheng Biochemical Group was 978,278,000, representing 64.04% of the total shareholding, with a market value of HKD 64.57 million[148] - The total number of shares held by the Hong Kong public was 549,308,000, accounting for 35.96% of the total shareholding, with a market value of HKD 36.25 million[148] - The board plans to distribute dividends of no less than 15% of the annual profit attributable to shareholders in the foreseeable future, subject to various factors[152] - The company has adopted a dividend policy aimed at providing stable and sustainable returns to shareholders[151] Employee and Workforce Management - The group employed approximately 890 full-time employees as of December 31, 2022, down from 930 in 2021, indicating a reduction of about 4.3% in workforce size[71] - Employee costs, including directors' remuneration, amounted to approximately HKD 91,484,000 for the year, a decrease of about 8.5% from HKD 99,728,000 in 2021[71] - The company is dedicated to maintaining competitive compensation and career development opportunities to retain talent[71] - The employee gender diversity structure shows 18% male and 82% female, indicating a significant gender imbalance[103] Risk Management - The company has established a "three lines of defense" risk management framework to manage operational risks effectively[160] - The board and senior management are responsible for overseeing the overall risk management procedures of the company[162] - The company aims to balance risk and return while identifying and managing significant risks at various levels[163] - The internal audit team has reviewed the efficiency of the company's risk management and internal control systems, finding them effective and sufficient[165]

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之內容概不負責， 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 部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 GLOBAL SWEETENERS HOLDINGS LIMITED 大 成 糖 業 控 股 有 限 公 司 * （於開曼群島註冊成立的有限公司） （股份代號：03889） 截至 年 月 日止年度的 2022 12 31 全年業績公告 財務摘要 2022年 2021年 變動% 收益（百萬港元） 359.6 728.1 (50.6) 毛利（百萬港元） 27.3 41.6 (34.4) 本年度虧損（百萬港元） (212.5) (96.3) 不適用 ...

Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 155.0 million, a decrease of 56.5% compared to HKD 356.4 million in the same period of 2021[7]. - Gross profit for the same period was HKD 11.2 million, down 17.6% from HKD 13.6 million year-on-year[7]. - The company reported a loss before tax of HKD 117.5 million, compared to a profit of HKD 7.2 million in the previous year, indicating a significant reversal in performance[7]. - The group recorded a net loss of approximately HKD 117,500,000 (2021: net profit: HKD 7,200,000) and an LBITDA of approximately HKD 46,200,000 (2021: EBITDA: HKD 83,200,000) during the period[30]. - Total comprehensive loss for the period was HKD 100,379 thousand, significantly worse than the comprehensive income of HKD 3,655 thousand in the prior year[106]. - Basic and diluted loss per share was HKD (7.7) cents, compared to earnings of HKD 0.5 cents per share in the same period last year[106]. - The company reported a loss of approximately HKD 117.5 million for the six months ended June 30, 2022, compared to a profit of HKD 7.2 million for the same period in 2021[122]. Operational Challenges - The production facilities in Shanghai were shut down for nearly two months due to COVID-19 restrictions, impacting sales volume and revenue of sweetener products[13]. - The company anticipates continued challenges in the operating environment for the second half of 2022 due to high corn prices and expected softening of sugar prices[25]. - The company is facing ongoing challenges due to the COVID-19 pandemic, with expectations of continued high corn prices and a competitive sweetener market in the second half of 2022[87]. - The company has not reported any significant new strategies or product developments during the review period[104]. - The company is closely monitoring the financial impact of the pandemic and market conditions to ensure the timely recovery of its subsidiaries' operations[87]. Debt and Financial Restructuring - The company is actively seeking to resolve its debt issues through a restructuring plan, with expectations to complete part of the plan by the end of the year[16]. - The company is actively negotiating a debt restructuring plan with banks and creditors to improve its financial situation[124]. - The total amount of loans and interest owed to the Agricultural Bank of China was approximately RMB 1.4 billion, which is being transferred to China Cinda Asset Management for RMB 414.7 million[124]. - The company has entered into a subscription agreement to issue 305,517,200 new ordinary shares at a subscription price of HKD 0.1 per share, aiming to raise approximately HKD 30 million for operational expenses and debt repayment[90]. - The company plans to allocate approximately HKD 10 million for repaying bank loans and other payables, and HKD 20 million for purchasing corn and other operational expenses[90]. Market Conditions - The outlook for the 2022/23 harvest year anticipates an increase in sugar production, although sugar prices are expected to decline[16]. - Corn prices are projected to remain high throughout 2022, affecting the company's upstream operations[16]. - The international corn price reached a peak of $8.18 per bushel in April 2022, equivalent to RMB 2,129 per ton, and was $7.44 per bushel (RMB 1,962 per ton) as of June 30, 2022[22]. - Global sugar production for the 2021/22 season was 174 million tons, with consumption estimated at 173.8 million tons, leading to rising international sugar prices[24]. - The international sugar price rose to $0.1870 per pound (RMB 2,769 per ton) by the end of June 2022, up from $0.1763 per pound (RMB 2,517 per ton) a year earlier[24]. Shareholder and Governance - The management team expressed gratitude towards shareholders, creditors, business partners, and government departments for their support during challenging times[16]. - The company did not declare an interim dividend for the period[7]. - The company did not recommend any dividend distribution for the current period, consistent with the previous period[65]. - The company has complied with all corporate governance codes as per the Stock Exchange Listing Rules during the reporting period[73]. - The Audit Committee reviewed the interim performance and financial statements for the period without any disagreements with management[76]. Financial Position - The company's total assets less current liabilities showed a net liability of HKD (550,645) thousand, worsening from HKD (446,001) thousand at the end of 2021[109]. - The current ratio and quick ratio were approximately 0.1 as of June 30, 2022, down from 0.2 as of December 31, 2021, indicating a decrease in current assets[51]. - The debt-to-asset ratio increased to approximately 112.2% as of June 30, 2022, compared to 99.2% on December 31, 2021, reflecting a higher level of debt relative to total assets[51]. - The company has secured financial support from Jilin Agricultural Investment Group, with a net asset value of approximately RMB 2.13 billion as of June 30, 2022, to ensure operational continuity[133]. - The company is facing significant uncertainties regarding its ability to continue as a going concern due to its financial losses and liabilities[122].

Financial Performance - The company's revenue for 2021 was HKD 728.1 million, a decrease of 5.3% compared to HKD 769.0 million in 2020[7]. - Gross profit for 2021 was HKD 41.6 million, down 46.6% from HKD 77.9 million in 2020[7]. - The company reported a net loss of HKD 96.3 million for 2021, compared to a loss of HKD 8.7 million in 2020[7]. - The group’s consolidated revenue decreased by 5.3% to approximately HKD 728,100,000 (2020: HKD 769,000,000) due to the ongoing impact of COVID-19 and high corn prices[28]. - The gross profit margin declined by approximately 4.4 percentage points to about 5.7% (2020: 10.1%) as the average selling price of sweetener products did not offset the increase in raw material costs[28]. - Other income and gains decreased by approximately 52.9% to about HKD 145,700,000 (2020: HKD 309,100,000) primarily due to the difference in one-time gains from property acquisition[37]. - The group recorded a net loss attributable to shareholders of approximately HKD 96,300,000 (2020: HKD 8,700,000) due to decreased gross profit and other income[44]. Debt and Restructuring - The company achieved a one-time gain of approximately HKD 128.3 million from a debt restructuring agreement in March 2021, significantly lower than the HKD 289.4 million gain from the previous year[14]. - The company is in ongoing negotiations with creditors to further progress its debt restructuring by the end of 2022[17]. - The management is focused on debt restructuring to improve the company's financial condition amid current market conditions[65]. - The company has engaged in debt restructuring, transferring most bank loans as part of the plan to improve liquidity[157]. Market Conditions and Challenges - The company anticipates continued challenges in the sweetener industry for 2022 due to high corn prices and increased logistics and energy costs[16]. - The company anticipates that the operating environment in 2022 will remain challenging due to high corn prices and the ongoing impact of the COVID-19 pandemic[27]. - The company aims to balance maintaining a relatively stable cash flow while preserving its market share amid changing consumer preferences towards healthier products[27]. - The company is enhancing its product portfolio and developing green products to address market needs and explore new export markets amid intense competition[157]. - The operational environment has been severely impacted by the COVID-19 pandemic, leading the company to streamline operations to ensure liquidity[157]. Production and Efficiency - The company plans to review and improve production processes and technology at its Shanghai facility to enhance efficiency and increase capacity utilization[16]. - The company continues to suspend operations at its sweetener production facilities in Jinzhou and Xinglongshan, consolidating resources to its more efficient Shanghai facility[26]. - Aging production facilities have reduced productivity, prompting upgrades and relocations of production facilities to adapt to market changes[157]. Corporate Governance - The company has maintained compliance with the corporate governance code as per the Stock Exchange Listing Rules, ensuring high standards of governance to protect shareholder interests[79]. - The board consists of five directors, including two executive directors and three independent non-executive directors, with no significant relationships among them[81]. - The company has adopted a rigorous code of conduct for directors' securities transactions, ensuring adherence to the standards set forth in the Listing Rules[79]. - The company has established mechanisms to ensure the independence of the board, allowing for independent opinions and information[83]. - The company has invested resources in selecting and establishing best practice standards for corporate governance[78]. Risk Management - The internal control and risk management system is designed to reasonably safeguard the group's assets and ensure all transactions are authorized by management[146]. - The company employs a "three lines of defense" approach for enterprise risk management, delineating responsibilities for managing operational risks across different levels of the organization[154]. - The audit committee reviews the effectiveness of internal controls and risk management systems at least annually, reporting any significant risk issues to the board[147]. - The company identified and managed significant risks at strategic, operational, and functional levels to balance risk and return while pursuing growth opportunities[155]. Environmental and Social Responsibility - The company is committed to minimizing its environmental footprint while ensuring public safety and health[155]. - The company publishes its Environmental, Social, and Governance (ESG) report annually on its website and the stock exchange[159]. Shareholder Relations - The company aims to achieve at least one female member on the board by December 31, 2024, to enhance board diversity[92]. - The board has adopted a dividend policy aiming to provide stable and sustainable returns to shareholders, targeting a minimum of 15% of annual profit attributable to equity holders as dividends in the foreseeable future[143]. - The actual amount of dividends declared and distributed will be determined at the board's discretion, considering factors such as cash reserves, investment requirements, and cash flow needs[143].

Financial Performance - The company reported revenue of HKD 356.4 million for the first half of 2021, a decrease of 18.0% compared to HKD 434.6 million in the same period of 2020[7]. - Gross profit fell to HKD 13.6 million, down 71.7% from HKD 48.0 million year-on-year[7]. - The company achieved a profit before tax of HKD 7.2 million, a significant turnaround from a loss of HKD 151.2 million in the previous year[7]. - Basic earnings per share improved to HKD 0.5, compared to a loss of HKD 9.9 per share in the same period last year[7]. - The company's consolidated revenue decreased by approximately 18.0% to about HKD 356.4 million, down from HKD 434.6 million in the previous year[34]. - The average selling price of sweetener products did not keep pace with the rising corn costs, leading to a gross profit reduction of approximately 71.7% to about HKD 13.6 million, with a gross margin decline of about 7.2 percentage points to approximately 3.8%[34]. - The company achieved a one-time debt restructuring gain of approximately HKD 128.3 million, resulting in a net profit of about HKD 7.2 million, compared to a net loss of HKD 151.2 million in the previous year[36]. - The total comprehensive income for the period was HKD 3,655,000, compared to a loss of HKD 145,616,000 in the previous year, showing a turnaround in overall financial performance[101]. - The group recorded a profit of approximately HKD 7,200,000 for the six months ended June 30, 2021, compared to a loss of approximately HKD 151,200,000 for the same period in 2020[114]. - The group’s total comprehensive loss for the period was HKD 421,203,000, compared to a total comprehensive loss of HKD 424,858,000 in the previous year[105]. Market Conditions - The domestic sugar price in China showed a moderate increase during the first half of 2021, driven by rising corn prices and sugar prices[20]. - The GDP of China grew by 12.7% year-on-year in the first half of 2021, contributing to a steady recovery in sugar demand across various industries[20]. - The company anticipates a challenging market environment in the second half of 2021 due to ongoing COVID-19 disruptions and complex international trade conditions[23]. - Domestic corn prices are expected to stabilize in the second half of 2021, following a period of high prices, with the introduction of early corn and increased imports[23]. - The management anticipates ongoing challenges in the operating environment due to high corn prices and the impact of the COVID-19 pandemic on global economic recovery[33]. Operational Adjustments - The company focused resources on the efficient operation of its downstream sweetener production facilities in Shanghai, maintaining stable cash inflow[20]. - The company plans to explore partial resumption of operations based on market conditions and funding availability, focusing on production lines with lower capital requirements[24]. - The company continues to integrate resources towards the more efficient Shanghai production facility, suspending operations at the Jinzhou and Xinglongshan plants[31]. - The company has suspended operations of certain subsidiaries due to the ongoing impact of the COVID-19 pandemic and rising corn prices, maintaining a strategy to focus resources on more efficient operations in Shanghai[89]. - The relocation of production facilities to the Xinglongshan plant has been postponed due to challenging economic conditions and the ongoing pandemic, with plans to reassess the feasibility of the relocation as market conditions evolve[90]. Debt and Financial Management - The restructuring of the company's debt has made significant progress, marking an important step towards resolving long-standing debt issues[19]. - The company has outstanding loans totaling approximately RMB 189,900,000 under the loan agreement with China Construction Bank, which have not been repaid as of the report date[93]. - An additional outstanding loan of RMB 180,000,000 was reported under the agreement with Agricultural Bank of China, which has also become immediately due and payable[95]. - The company is working on a debt restructuring plan to improve its financial condition, particularly concerning the loans owed to Agricultural Bank of China[96]. - The group is actively negotiating debt restructuring plans with banks and creditors, with expectations to complete these plans by the end of 2021[119]. Employee and Governance - As of June 30, 2021, the group employed approximately 950 full-time employees in Hong Kong and China, maintaining the same number as of December 31, 2020[65]. - The company has adopted a remuneration policy for directors based on character, qualifications, and market benchmarks[81]. - The company has established a corporate governance committee to determine and review corporate governance policies and practices[82]. - The company emphasizes competitive compensation and career development opportunities to retain talent[65]. Shareholder Information - Major shareholders include Da Cheng Corn Bio-Tech Co., Ltd. holding 977,778,000 shares, representing 64.01% of the issued share capital[70]. - Modern Agriculture Industry Investment Co., Ltd. holds 978,278,000 shares, representing 64.04% of the issued share capital[70]. - The company does not recommend the distribution of any interim dividends for the period, consistent with the previous period ending June 30, 2020[67]. Production and Sales - The sales revenue from corn syrup increased by approximately 69.5% to about HKD 297.4 million, driven by a volume increase of about 30.9% to approximately 72,000 tons[39]. - Revenue from external customers in China was HKD 349,065,000 for the first half of 2021, down from HKD 415,720,000 in the same period of 2020[130]. - The corn refining products segment reported a loss of HKD 22,727,000 for the first half of 2021, compared to a loss of HKD 29,830,000 in the same period of 2020[130]. - The corn sweetener segment experienced a loss of HKD 53,029,000 in the first half of 2021, compared to a loss of HKD 42,370,000 in the same period of 2020[130].