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].

Financial Performance - The company's revenue for 2020 was HKD 769.0 million, a decrease of 60.7% compared to HKD 1,956.8 million in 2019[7]. - Gross profit for 2020 was HKD 77.9 million, down 62.5% from HKD 207.6 million in 2019[7]. - The company reported a loss of HKD 8.7 million for the year, an improvement from a loss of HKD 162.6 million in 2019[7]. - The group's consolidated revenue decreased by approximately 60.7% to about HKD 769 million (2019: HKD 1,956.8 million) due to operational suspensions caused by the COVID-19 pandemic[46]. - The group's gross profit decreased by approximately 62.5% to about HKD 77.9 million (2019: HKD 207.6 million), resulting in a gross margin of about 10.1% (2019: 10.6%) which is a slight decline of 0.5 percentage points[46]. - Financial costs increased significantly by approximately 45.4% to about HKD 110.1 million (2019: HKD 75.7 million) due to high debt levels[47]. - The group recorded a net loss of approximately HKD 8.7 million (2019: HKD 162.6 million) and an EBITDA of approximately HKD 201.4 million (2019: LBITDA of HKD 22.9 million)[47]. - Other income and gains increased by approximately 1,579.9% to about HKD 309.1 million (2019: HKD 18.4 million) primarily due to a one-time gain from the acquisition of properties[55]. Operational Challenges - The company suspended production at its Changchun and Jinzhou facilities to minimize cash outflow during the pandemic[20]. - The ongoing impact of the COVID-19 pandemic and increased market competition are expected to continue challenging the company's operating environment in 2021[37]. - The operating environment remains challenging, with a significant decline in demand for feed products due to lockdown measures in early 2020[31]. - The group faced significant challenges, including market competition and rising costs, alongside heavy debt and financial expenses[22]. - The company has shifted its focus away from upstream product production due to weak demand and intense competition, which has strained its finances[21]. Debt Restructuring and Financial Strategy - The first phase of the debt restructuring was completed by the end of March 2021, relieving the company of long-standing financial guarantees[20]. - The company plans to continue advancing its debt restructuring and land acquisition processes to enhance its overall financial condition[20]. - A debt restructuring plan has achieved milestone results, with a bank transferring loan rights to a government-controlled entity, marking a significant improvement in the group's financial situation[22]. - The company is actively exploring various solutions to address financial guarantee contracts totaling RMB 2.49 billion related to debts of its subsidiaries[38]. - The company has entered into a repurchase agreement with Changchun Runde Investment Group to restructure debts, aiming to significantly improve its financial situation[41]. Market Conditions and Commodity Prices - Domestic corn prices remained high due to typhoon impacts and supply concerns, significantly increasing production costs for the company[21]. - The international sugar supply tightened, leading to an increase in global sugar prices, while domestic sugar prices fell due to increased imports[21]. - The sugar market in China has become more competitive, with sugar imports increasing from 3.39 million tons in 2019 to 4.35 million tons in 2020[32]. - Domestic corn prices in China surged to RMB 2,529 per ton by the end of 2020, compared to RMB 1,850 per ton at the end of 2019[33]. - International sugar prices rose to $0.1549 per pound by the end of 2020, up from $0.1342 per pound at the end of 2019[36]. Strategic Focus and Future Plans - The company focused resources on its Shanghai production base to improve operational efficiency amid a challenging market environment[21]. - The group plans to closely monitor market dynamics and raw material costs while evaluating the feasibility of resuming upstream and downstream production[27]. - Strategic partnerships are being sought to achieve breakthroughs in business layout, product, and market diversification[27]. - The group aims to leverage technical advantages at its production facilities to enhance product development and improve production processes for greater competitive advantage[27]. - The group aims to enhance its product portfolio and develop high-value products and new applications through strategic business alliances with major industry peers[81]. Corporate Governance and Management - The company has adopted a set of stringent codes of conduct for directors' securities trading, ensuring compliance with the standards set out in the listing rules[98]. - The board consists of five directors, including two executive directors and three independent non-executive directors, with no significant relationships among them[104]. - The company has implemented a board diversity policy, considering various factors such as gender, age, and professional skills to enhance its competitive advantage[105]. - The total remuneration for directors in 2020 was HKD 601,000, a decrease from HKD 616,000 in 2019, representing a decline of approximately 2.43%[124]. - The company has established various committees, including the audit committee, nomination committee, and remuneration committee, to comply with corporate governance codes[135]. Risk Management - The company has implemented a risk management and internal control system to monitor its financial performance and organizational structure[134]. - The company employs a "three lines of defense" approach to manage operational risks, involving management oversight, established guidelines, and internal audit evaluations[188]. - The company aims to identify and manage significant risks at various levels to enhance its strategic and operational effectiveness while balancing risk and return[189]. - The internal audit team reviewed the effectiveness of the company's risk management and internal control systems, identifying weaknesses and proposing improvements[199]. - The company emphasizes the importance of risk management as a responsibility of all employees, integrating it into business processes and strategic development[188].

Financial Performance - Revenue for the first half of 2020 was HKD 434.6 million, a decrease of 50.4% compared to HKD 876.0 million in the same period of 2019[6]. - Gross profit for the first half of 2020 was HKD 48.0 million, down 40.5% from HKD 80.7 million in the first half of 2019[6]. - The company reported a pre-tax loss of HKD 151.2 million for the first half of 2020, compared to a loss of HKD 102.6 million in the same period of 2019[6]. - The group recorded a net loss attributable to shareholders of approximately HKD 151,200,000, widening from HKD 102,600,000 in the previous year[61]. - The company incurred a loss before tax of HKD 151,198,000, compared to a loss of HKD 102,634,000 in the previous year, representing a 47.2% increase in losses[127]. - Total comprehensive loss for the period was HKD 145,616,000, compared to HKD 100,555,000 in the prior year, indicating a 44.8% increase in total losses[127]. - The company's basic and diluted loss per share was HKD 0.099, compared to HKD 0.067 in the same period last year, reflecting a 47.8% increase in loss per share[127]. - The group recorded a loss of approximately HKD 151 million for the period, compared to a loss of HKD 103 million for the six months ended June 30, 2019[142]. Operational Challenges - The company faced significant challenges due to COVID-19, leading to a substantial decrease in sales volume and revenue[20]. - The company has suspended most of its production facilities during the review period, primarily selling inventory from the previous year[20]. - The domestic sweetener market remains competitive, with demand further declining due to economic downturns and rising raw material costs[20]. - The company has suspended operations at its downstream sweetener production facilities in Jinzhou and Xinglongshan until market conditions improve[33]. - The company has suspended operations at its Jinzhou and Xinglongshan plants since the last quarter of 2019 due to unfavorable market conditions and the impact of the pandemic[109]. Debt and Financial Restructuring - The company is actively pursuing a debt restructuring plan, with a significant loan transfer agreement valued at approximately RMB 4 billion as a first step[21]. - The management's primary focus for the second half of 2020 is to implement a debt restructuring plan to alleviate heavy financial costs and return the business to normal operations[24]. - The company anticipates resolving all outstanding payments and debts related to the transfer loan and Daqing Cang loan by the end of 2020[39]. - The company is exploring debt restructuring plans to significantly improve its financial condition following the transfer of loan rights to a new creditor for approximately RMB 815,700,000[118]. - The company has not received any waivers from lenders regarding the breaches of loan agreements as of the report date[118]. Market Conditions - The domestic GDP began to recover in Q2 2020, growing by 3.2%, although the overall GDP for the first half of 2020 declined by 1.6% year-on-year[24]. - The global corn production for the 2020/21 season is estimated at 1,163.2 million tons, an increase from 1,112.4 million tons in the previous season[30]. - Domestic corn prices in China surged to RMB 2,158 per ton by the end of June 2020, up from RMB 1,800 per ton a year earlier, due to supply shortages[30]. - The international sugar price dropped to $0.1184 per pound by the end of June 2020, compared to $0.1232 per pound a year earlier, reflecting the impact of the pandemic[33]. - The domestic sugar production in China for the 2020/21 season is expected to remain stable at approximately 10.7 million tons, with consumption around 15.8 million tons[33]. Corporate Governance - The management is committed to high levels of corporate governance to protect shareholder interests[88]. - The company has established a Nomination Committee to determine the nomination policies for directors[95]. - The Remuneration Committee has adopted a remuneration policy based on character, qualifications, and market benchmarks[96]. - The Corporate Governance Committee has reviewed the company's governance policies and confirmed compliance with all code provisions during the period[98]. - The Continuous Related Party Transactions Executive Committee is responsible for monitoring and managing ongoing related party transactions with Da Cheng Biochemical Group[101]. Compensation and Support - The company expects to receive compensation of RMB 443 million from the government for land acquisition, which will help alleviate financial and cash flow pressures during the production halt[21]. - The company has received financial support from its major shareholder, which will continue for the next 24 months, ensuring operational stability[156]. - The group expects to receive a total compensation of approximately RMB 443 million for the acquisition of properties owned by its subsidiary, with the first phase of acquisition expected to be completed by Q3 2020[151]. Inventory and Cash Flow - The group’s inventory level decreased by approximately 72.7% to about HKD 52,700,000[67]. - Cash and cash equivalents at the end of the period were HKD 18,850,000, down from HKD 26,193,000 at the end of the same period in 2019, indicating a decrease of approximately 28%[136]. - Operating cash flow for the period was HKD 50,161,000, compared to an outflow of HKD 15,143,000 in the previous year, showing a significant improvement in cash generation[136]. - The company incurred a total of HKD 923,000 in cash outflow for investing activities, primarily for the purchase of property, plant, and equipment[136]. - Financing activities resulted in a cash outflow of HKD 60,825,000, compared to an inflow of HKD 30,011,000 in the same period last year, indicating a shift in financing strategy[136].