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].

Financial Performance - Total revenue for 2019 was HKD 1,957 million, a slight decrease of 0.2% compared to HKD 1,961 million in 2018[7]. - Gross profit increased by 2.4% to HKD 208 million from HKD 203 million in the previous year[7]. - The net loss attributable to shareholders narrowed to HKD 163 million, down from HKD 208 million in 2018, representing a reduction of approximately 21.6%[7]. - The group recorded a consolidated revenue of approximately HKD 1,956,800,000 for the year, a slight decrease from HKD 1,961,000,000 in 2018, primarily due to a 19.8% drop in downstream sweetener sales to about 299,000 tons[41]. - The group experienced a net loss of approximately HKD 162,600,000 for the year, an improvement from a net loss of HKD 208,500,000 in 2018[42]. - Revenue from the corn syrup segment decreased by approximately 23.3% to about HKD 587,300,000, with gross profit declining by approximately 37.0% to about HKD 68,500,000[47]. - Solid corn syrup revenue decreased to approximately HKD 331,100,000, with gross profit down by about 21.3% to approximately HKD 37,400,000[48]. - Other income and gains decreased by approximately 9.8% to about HKD 18,400,000, primarily due to a decline in receivables and government grants[54]. Operational Challenges - The company faced challenges from external economic conditions and internal financial pressures, but managed to maintain sales and gross profit levels similar to the previous year[18]. - The global economic impact of the COVID-19 pandemic is expected to be significant, with industrial production and consumer spending taking time to recover[24]. - The impact of the COVID-19 pandemic has led to operational challenges, with the board continuously assessing its effects on the group's performance[79]. - The production facility in Xinglongshan was halted in February 2020 due to insufficient corn starch supply, but sales activities continued with existing inventory[24]. - The company has suspended operations at its downstream sweetener production facility in Jinzhou until market conditions improve[30]. Market Conditions - The domestic corn prices stabilized due to the near complete digestion of old inventories, while international corn prices rose due to reduced production in the U.S. and high demand from the ethanol industry[19]. - The market for sweeteners faced structural changes, with some large manufacturers beginning to produce sweeteners in-house, further intensifying competition[19]. - Global corn production for the 2019/20 season is estimated at 1,112 million tons, with international corn prices rising to $6.08 per bushel by the end of the year[29]. - Domestic corn prices in China increased by 5.7% year-on-year, rising from RMB 1,750 per ton to RMB 1,850 per ton[29]. - International sugar prices are expected to rebound due to a production shortfall of approximately 2 to 4 million tons, with prices reaching $0.1342 per pound[30]. Debt and Financial Restructuring - The company is in discussions with creditors for debt restructuring and has made progress in negotiating terms to alleviate financial pressure[23]. - The group has taken measures to improve its financial situation, with expectations to resolve all outstanding payments and debts related to the transferred loans and Dajin Cang by the end of 2020[39]. - The group has been actively negotiating with major lenders and asset management companies to restructure its debts, aiming for a significant improvement in financial conditions[39]. - The company is actively negotiating debt restructuring with banks and local governments to alleviate financial pressure[24]. - The company has identified liquidity risks due to urgent cash needs and is accelerating the sale of land in the Green Park area to obtain additional funds[189]. - The company is actively negotiating with local governments and major banks to facilitate debt restructuring due to the need to renew large bank loans[190]. Strategic Initiatives - The company plans to leverage its sales network and brand advantages in East China to expand market coverage into inland and southern regions[24]. - The group plans to optimize production and maintain market share while enhancing its product portfolio and developing high-value products[80]. - The group will integrate resources to develop the Shanghai production base, leveraging synergies with the Jinzhou production base[81]. - The company aims to enhance its product portfolio and develop more export sales channels to mitigate intense competition in domestic and export markets[192]. Corporate Governance - The company has achieved a strong compliance record with corporate governance standards, ensuring transparency and accountability[94]. - The board of directors has emphasized the importance of diversity, implementing policies to enhance board composition across various dimensions[101]. - The board has adopted measurable goals, including at least one independent non-executive director with accounting qualifications and one with legal experience[103]. - The board composition includes 25% with accounting experience, 25% with legal experience, and 50% with agricultural experience[108]. - The total remuneration for directors in 2019 was HKD 616,000, a decrease of 86.1% from HKD 4,453,000 in 2018[120]. - The company has ensured sufficient liability insurance coverage for directors and senior management against legal liabilities incurred in the performance of their duties[114]. - The company conducted at least four board meetings annually to discuss overall strategy, operational and financial performance[108]. - The company encourages continuous professional development for all directors to enhance their knowledge and skills[115]. - The chairman and CEO roles are separated, with Mr. Zhang serving as the acting chairman and Mr. Wang as the COO[117]. - The company has implemented measures to ensure timely access to necessary information for effective board performance[108]. Shareholder Engagement - The company maintains open communication channels with shareholders through various reports and meetings[167]. - The company has adopted a shareholder communication policy to encourage ongoing dialogue with shareholders[167]. - Shareholders holding at least 10% of the voting shares can request a special general meeting through written notice[197]. - The special general meeting must be held within two months of the request being made[198]. - If the board fails to convene the meeting within 21 days of the request, the requestor can call the meeting themselves[198]. - Shareholders can submit inquiries regarding their shareholding, transfer, registration, and dividend payments to the company's Hong Kong share transfer office[199]. - Shareholders can also email any inquiries about the company at any time[200].

Financial Performance - For the six months ended June 30, 2019, the company's revenue was HKD 876.0 million, a decrease of 2.1% compared to HKD 894.5 million in the same period of 2018[7]. - Gross profit increased significantly to HKD 80.7 million, representing a 42.1% increase from HKD 56.8 million year-on-year[7]. - The company reported a pre-tax loss of HKD 102.6 million, an improvement from a loss of HKD 132.0 million in the previous year[7]. - The basic loss per share improved to HKD 6.7 from HKD 8.7, indicating a reduction in losses[7]. - The group's consolidated revenue slightly declined by about 2.1% to approximately HKD 876 million (2018: HKD 894.5 million) during the period[47]. - The company reported a loss before tax of HKD 102,634,000, an improvement of 22.4% compared to a loss of HKD 132,042,000 in the previous year[139]. - The total comprehensive loss for the period was HKD 100,555,000, which includes other comprehensive income of HKD 2,079,000[148]. - The group recorded a loss of approximately HKD 102.6 million for the period, compared to a loss of HKD 132.8 million for the six months ended June 30, 2018[153]. Market Conditions - The overall economic growth remains weak, influenced by factors such as the US-China trade dispute and Brexit, affecting the company's market environment[23]. - The sweetener business faced declining sales due to intensified market competition, impacting overall revenue[22]. - The demand for sweeteners has declined due to customers in East China extending their supply chains upstream to produce sweeteners themselves, exacerbating the already surplus supply situation[24]. - The production costs of corn sweeteners at the Shanghai base have increased due to stricter environmental policies, leading to a decrease in gross margins for corn syrup and solid corn syrup[24]. - The sugar market is expected to rebound by the end of the year due to reduced production in Brazil and Thailand, as well as increased demand for ethanol, which may help narrow the price gap between domestic and international sugar prices[28]. Operational Efficiency - The company continues to enhance procurement and production cost controls to improve operational efficiency[22]. - The group plans to continue investing in R&D to reduce operational costs and improve cost efficiency[34]. - The group has implemented measures to enhance operational efficiency, particularly in the Jinzhou and Xinglongshan plants, to reduce operating costs and improve competitiveness[160]. - The group is actively monitoring its operating cash flow and has optimized production to minimize cash outflows during the period[160]. Debt and Financial Management - The company aims to address its heavy debt burden and improve its financial situation through feasible solutions[22]. - The company is actively seeking debt restructuring and exploring business reorganization plans to introduce strategic investors and reduce reliance on a single business[24]. - The main banking partners have confirmed continued support during the debt-to-equity transition period, ensuring loan stability for the company[29]. - The group has engaged in discussions with banks to secure sufficient bank loans and improve debt-to-equity proposals, including converting bank debts into equity to reduce the debt ratio[156]. - The group aims to finalize the revised debt-to-equity proposal by the end of 2019, pending approval from the Jilin Provincial Government and major lending banks[158]. Production and Supply Chain - The company experienced an 8.0% increase in corn procurement prices compared to the previous year due to the lack of corn procurement subsidies[23]. - The corn planting area in China is expected to decrease, and the demand for corn is anticipated to grow due to the government's support for ethanol gasoline development, with a target of achieving nationwide coverage by 2020[28]. - A procurement contract for 500,000 tons of corn was signed with a subsidiary of a major shareholder, ensuring a stable supply of corn, with approximately 150,000 tons purchased during the period, accounting for 64.0% of total corn procurement[161]. Corporate Governance - The company has established a high level of corporate governance to protect shareholder interests[97]. - The audit committee, consisting of three independent non-executive directors, reviews the financial reporting procedures and risk management[101]. - The company has complied with all provisions of the corporate governance code during the reporting period[98]. - The company has appointed a new Chief Operating Officer to oversee operational management and product development[98]. Employee and Human Resource Management - As of June 30, 2019, the group employed approximately 1,100 full-time employees, maintaining a focus on human resource management as a competitive advantage[82].

Financial Performance - The company's revenue for the year ended December 31, 2018, was HKD 1,961 million, representing a 40.6% increase from HKD 1,395 million in 2017[6]. - Gross profit for 2018 was HKD 203 million, up 31.3% from HKD 154 million in 2017, resulting in a gross margin of 15.7%[6][18]. - The company recorded a loss attributable to shareholders of HKD 208 million in 2018, compared to a loss of HKD 140 million in 2017[6]. - The total sales volume grew by 23.1% to approximately 714,000 tons, up from 580,000 tons in the previous year[40]. - The company recorded a net loss of approximately HKD 208,500,000, compared to HKD 140,300,000 in the previous year[41]. - The LBITDA (loss before interest, tax, depreciation, and amortization) was approximately HKD 46,400,000, up from HKD 24,500,000 in the previous year[41]. - The company experienced a 95.6% reduction in corn procurement subsidies, down to about HKD 1,000,000 from HKD 22,900,000 in the previous year[40]. - The company reported a loss for the fiscal year ending December 31, 2018, with financial details available in the consolidated financial statements[199]. - No final dividend was recommended for the fiscal year ending December 31, 2018, consistent with the previous year[200]. Sales and Production - The sales volume of upstream products reached approximately 341,000 tons, an increase of nearly 30% year-on-year[18]. - The average selling price increased by 14.0%, contributing to a gross profit rise of 31.3% to about HKD 202,800,000, compared to HKD 154,400,000 in the previous year[40]. - The company’s revenue from upstream products increased to approximately HKD 839.3 million in the current year, up from HKD 572.8 million in 2017, with a gross profit of HKD 46.5 million compared to HKD 40.2 million in 2017[43]. - Sales volume of corn starch rose to about 212,000 tons, up from 163,000 tons in 2017, while revenue increased to approximately HKD 559.4 million from HKD 362.9 million[43]. - Revenue from corn syrup increased by 24.6% to approximately HKD 765.4 million, with a gross profit of HKD 108.8 million, up from HKD 95.8 million in 2017[45]. - Solid corn syrup revenue surged by 80.1% to approximately HKD 355.8 million, with gross profit rising to HKD 47.5 million from HKD 17.5 million in 2017[46]. - The trading segment's revenue dropped significantly to approximately HKD 500,000 from HKD 10.2 million in 2017, with no gross profit recorded this year[48]. - The company exported approximately 39,000 tons of upstream corn refining products, generating export sales of about HKD 92.7 million, which accounted for 7.3% of total revenue[49]. Cost and Pricing - Corn prices rose approximately 27% year-on-year, leading to increased raw material costs for the company[18]. - The cost of purchasing corn increased by 27.2%, leading to a 14.9% rise in sales cost per ton[40]. - The domestic sugar price remained around RMB 5,400, down approximately 16% year-on-year, influenced by increased domestic sugar production and low international sugar prices[19]. - The domestic sugar price has decreased to RMB 5,378 per ton, down from RMB 6,418 per ton at the end of 2017, due to increased sugar production and government measures[30]. - The international sugar price remains low at $0.1203 per pound, with a projected gap of about 2 million tons in sugar supply for the 2019/20 fiscal year[30]. Debt and Financial Management - The group is under significant financial pressure, necessitating a comprehensive solution for overall debt issues to return to healthy development[21]. - The group is negotiating debt restructuring with creditors and local government, with preliminary acceptance of a revised debt-to-equity proposal[21]. - The company is actively negotiating debt restructuring with multiple banks in China to facilitate the process[65]. - The company continues to negotiate with banks for financing to maintain existing bank financing and improve debt-to-equity proposals[171]. - The debt-to-equity ratio rose to approximately 145.0% from 112.2% in 2017, indicating increased leverage[62]. Corporate Governance - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange's listing rules throughout the year ending December 31, 2018[85]. - The board of directors had a high attendance rate in meetings, with Mr. He Liji achieving 100% attendance in all committee meetings[87]. - The company has invested significant resources in selecting and establishing best practice standards for corporate governance[84]. - The company’s independent non-executive directors include professionals with extensive legal and financial backgrounds, enhancing governance oversight[79][81]. - The company has a structured code of conduct for directors regarding securities trading, ensuring adherence to strict compliance standards[85]. - The company has established various committees, including an audit committee, to ensure compliance with corporate governance codes[121]. - The audit committee held three meetings during the year to review the financial reporting procedures and risk management[123]. - The board of directors is responsible for overseeing the preparation of financial statements and ensuring compliance with applicable accounting standards[118]. Environmental and Social Responsibility - The company emphasizes environmental protection and sustainable development, aiming to reduce greenhouse gas emissions and improve production efficiency through R&D[177]. - The company has established environmental monitoring teams across subsidiaries to oversee emissions and ensure compliance with local environmental regulations[177]. - The company has installed online monitoring systems for wastewater and air emissions to ensure real-time compliance with environmental standards[178]. - The group is committed to providing a safe working environment, regularly assessing workplace conditions to ensure employee health and safety[182]. - The company maintains a zero-tolerance policy towards corruption, ensuring all members adhere to strict anti-bribery measures[185]. Human Resources - Approximately 1,100 full-time employees were employed as of December 31, 2018, down from 1,120 in 2017, highlighting a focus on human resource management[74]. - The group emphasizes the importance of employee selection, training, and evaluation to align performance with corporate strategy[182]. - The company engages employees in various cultural and sports activities, promoting social participation[186]. Future Outlook and Strategy - The company plans to continue investing in R&D to reduce operating costs and improve cost efficiency[31]. - The company aims to enhance its market position through brand consolidation and operational efficiency improvements[31]. - The company plans to enhance its product portfolio and develop high-value products through internal R&D and partnerships with leading international firms[71]. - The company aims to introduce new investors to drive business development and improve financial conditions[25].