中国淀粉(03838) - 2020 - 中期财报

Report on Review of Interim Financial Information The auditor reviewed China Starch Holdings Limited's H1 2020 condensed consolidated interim financial statements, finding no material non-compliance - The auditor has reviewed the condensed consolidated financial statements and, based on the review, found no matters leading them to believe the statements were not prepared in all material respects in accordance with HKAS 34[5][7] Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For H1 2020, the company achieved significant growth in revenue, gross profit, and net profit, with increased basic earnings per share Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (For the six months ended June 30) | Indicator | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | Revenue | 3,850,007 | 2,872,208 | | Cost of sales | (3,564,808) | (2,717,941) | | Gross profit | 285,199 | 154,267 | | Distribution expenses | (93,469) | (70,640) | | Administrative expenses | (99,252) | (79,357) | | Impairment loss on financial assets | – | (5,807) | | Other net income | 41,893 | 37,035 | | Operating profit | 134,371 | 35,498 | | Finance income | 8,195 | 11,418 | | Finance costs | (3,638) | (260) | | Profit before income tax | 138,928 | 46,656 | | Income tax expense | (26,572) | (9,907) | | Profit and total comprehensive income for the period | 112,356 | 36,749 | | Profit attributable to owners of the company | 102,728 | 38,293 | | Non-controlling interests | 9,628 | (1,544) | | Basic and diluted earnings per share (RMB) | 0.0171 | 0.0064 | Condensed Consolidated Statement of Financial Position As of June 30, 2020, total assets and equity increased, driven by growth in property, plant and equipment, inventory, and trade receivables Condensed Consolidated Statement of Financial Position (As of June 30) | Indicator | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | ASSETS | | | | Total non-current assets | 2,652,684 | 2,593,188 | | Property, plant and equipment | 2,180,267 | 2,085,992 | | Right-of-use assets | 395,693 | 400,543 | | Investment in equities | 2,000 | – | | Total current assets | 1,936,824 | 1,831,786 | | Inventories | 722,769 | 538,777 | | Trade and other receivables | 764,719 | 841,983 | | Cash and cash equivalents | 233,607 | 185,357 | | EQUITY AND LIABILITIES | | | | Total equity | 3,039,653 | 2,961,147 | | Total non-current liabilities | 371,320 | 388,396 | | Total current liabilities | 1,178,535 | 1,075,431 | | Trade and other payables | 761,078 | 691,914 | | Borrowings | 184,764 | 151,354 | | Total equity and liabilities | 4,589,508 | 4,424,974 | Condensed Consolidated Statement of Changes in Equity For H1 2020, total equity increased due to profit and comprehensive income, partially offset by the 2019 final dividend payment Condensed Consolidated Statement of Changes in Equity (For the six months ended June 30) | Indicator | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | Total equity at January 1 | 2,961,147 | 2,926,343 | | Profit and total comprehensive income for the period | 112,356 | 36,749 | | 2019 final dividend | (33,850) | – | | 2018 final dividend | – | (63,292) | | Total equity at June 30 | 3,039,653 | 2,899,800 | Condensed Consolidated Statement of Cash Flows For H1 2020, operating cash flow turned positive, investment outflow decreased, and financing flow remained stable, leading to a net increase in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (For the six months ended June 30) | Indicator | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | Net cash from operating activities | 141,204 | (318,866) | | Net cash used in investing activities | (126,040) | (322,086) | | Net cash from financing activities | 33,086 | 26,979 | | Net increase/(decrease) in cash and cash equivalents | 48,250 | (613,973) | | Cash and cash equivalents at January 1 | 185,357 | 782,904 | | Cash and cash equivalents at June 30 | 233,607 | 168,931 | Notes to the Condensed Consolidated Interim Financial Statements This section details notes to the condensed consolidated interim financial statements, covering preparation basis, policy changes, segment data, income, tax, EPS, dividends, balance sheet items, related party transactions, and post-reporting events 1. Basis of preparation The condensed consolidated interim financial statements adhere to HKFRS 34 and Listing Rules, maintaining 2019 accounting policies with minor 2020 adjustments - The condensed consolidated interim financial statements are prepared in accordance with the Hong Kong Listing Rules and HKAS 34 'Interim Financial Reporting'[21][24] - The statements are presented in RMB and prepared under the historical cost convention, except for certain financial assets measured at fair value[22][24] 2. Adoption of new/revised HKFRSs The Group adopted HKFRS amendments effective January 1, 2020, which had no financial impact - The Group adopted amendments to HKAS 1 and 8, HKFRS 3, and HKFRS 9, HKAS 39, and HKFRS 7[23] - The adoption of these amendments had no financial impact on the Group[23] 3. Segment information The Group's business segments are upstream products and fermentation/downstream products, with upstream products showing significantly higher H1 2020 sales and results Segment Results (For the six months ended June 30) | Indicator | Upstream Products (RMB Thousand) | Fermentation and Downstream Products (RMB Thousand) | Total (RMB Thousand) | | :--- | :--- | :--- | :--- | | 2020 | | | | | Sales to external customers | 2,980,713 | 869,294 | 3,850,007 | | Inter-segment sales | 136,941 | – | 136,941 | | Reportable segment results | 212,863 | 69,905 | 282,768 | | Profit before income tax | | | 138,928 | | 2019 | | | | | Sales to external customers | 2,227,610 | 644,598 | 2,872,208 | | Inter-segment sales | 100,983 | – | 100,983 | | Reportable segment results | 114,121 | 27,545 | 141,666 | | Profit before income tax | | | 46,656 | 4. Other net income For H1 2020, other net income, mainly from government grant amortization, scrap sales, and payable reversals, increased year-on-year Other Net Income (For the six months ended June 30) | Item | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | Amortization of government grants | 29,104 | 28,206 | | Gain on sales of scrap materials | 5,249 | 5,892 | | Reversal of payables | 3,795 | – | | Gain on disposal of property, plant and equipment | 467 | 4,195 | | Government grants (Note) | 511 | 2,343 | | Net foreign exchange loss | (1,043) | (1,322) | | Others | 3,810 | (2,279) | | Total | 41,893 | 37,035 | - Government grants in the first half of 2020 primarily supported employment, while those in the first half of 2019 mainly supported business development[32] 5. Profit before income tax Key expenses for profit before income tax include salaries, depreciation of PPE and right-of-use assets, delivery, logistics, and R&D Key Expenses (For the six months ended June 30) | Item | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | Salaries, wages and other benefits | 96,991 | 96,789 | | Depreciation of property, plant and equipment | 117,202 | 78,861 | | Depreciation of right-of-use assets | 4,850 | 2,763 | | Delivery and logistics | 81,827 | 59,730 | | Research and development expenses | 13,111 | 19,101 | 6. Income tax expenses For H1 2020, income tax expenses included current and deferred tax, with one Chinese subsidiary benefiting from a 15% preferential high-tech enterprise tax rate Income Tax Expenses (For the six months ended June 30) | Item | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | Current income tax – PRC corporate income tax | 7,164 | 507 | | Current income tax – Over-provision in prior years | (300) | – | | Deferred tax | 19,708 | 9,400 | | Total | 26,572 | 9,907 | - A Chinese subsidiary was recognized as a high-tech enterprise, enjoying a 15% preferential corporate income tax rate[37] 7. Earnings per share For H1 2020, basic earnings per share were RMB 0.0171, with no diluted EPS presented due to the absence of dilutive ordinary shares - For the six months ended June 30, 2020, basic earnings per share were RMB 0.0171 (2019: RMB 0.0064)[37] - No diluted earnings per share were presented as there were no potentially dilutive ordinary shares in either period[37] 8. Dividends The Board does not recommend an interim dividend for H1 2020 - The Board does not recommend an interim dividend for the six months ended June 30, 2020 (2019: nil)[37] - The final dividend of 0.62 HK cents per share for the year ended December 31, 2019, was approved at the AGM on May 19, 2020[37][38] 9. Property, plant and equipment As of June 30, 2020, PPE net book value increased from additions, partially offset by depreciation and disposals Changes in Net Book Value of Property, Plant and Equipment (As of June 30) | Item | 2020 (RMB Thousand) | | :--- | :--- | | At January 1 | 2,085,992 | | Additions | 211,513 | | Depreciation | (117,202) | | Disposals | (36) | | At June 30 | 2,180,267 | 10. Right-of-use assets As of June 30, 2020, right-of-use assets' net book value slightly decreased due to depreciation Changes in Net Book Value of Right-of-Use Assets (As of June 30) | Item | 2020 (RMB Thousand) | | :--- | :--- | | At January 1 | 400,543 | | Depreciation | (4,850) | | At June 30 | 395,693 | 11. Investment in equities For H1 2020, the Group invested RMB 2 million for a 10% equity stake in Tiangong Biotechnology, recognized as a financial asset at fair value through profit or loss - The Group subscribed for RMB 2,000,000 in Tiangong Biotechnology (Tianjin) Co., Ltd., holding a 10% equity interest[43][45] - Tiangong's principal business is the research and development of corn-derived products and commercialization of research results[43][45] - This investment is recognized as a financial asset at fair value through profit or loss, with the fair value initially determined at RMB 2,000,000[44][45] 12. Trade and other receivables As of June 30, 2020, total trade and other receivables decreased, with fewer bank acceptance notes but more trade receivables, and a 0-90 day credit period Trade and Other Receivables (As of June 30) | Item | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | Trade receivables (net of loss allowance) | 187,257 | 142,059 | | Bank acceptance notes | 326,746 | 493,111 | | Prepayments and other tax receivables | 246,374 | 204,441 | | Others | 4,342 | 2,372 | | Total | 764,719 | 841,983 | - The Group generally grants credit periods to customers ranging from 0 to 90 days (2019: 0 to 150 days)[47] Aging Analysis of Trade Receivables (As of June 30) | Aging | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | 0 – 30 days | 163,763 | 125,634 | | 31 – 60 days | 17,039 | 11,400 | | 61 – 90 days | 4,143 | 2,274 | | Over 90 days | 2,312 | 2,751 | | Total | 187,257 | 142,059 | 13. Share capital As of June 30, 2020, and December 31, 2019, the company's total issued ordinary shares remained at 5,995,892,043 - As of June 30, 2020, and December 31, 2019, the company had 5,995,892,043 issued ordinary shares[53][55] 14. Trade and other payables As of June 30, 2020, total trade and other payables increased, driven by construction, accrued expenses, and salaries, with bills payable secured by bank acceptance notes and deposits Trade and Other Payables (As of June 30) | Item | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | Trade payables | 144,244 | 129,606 | | Bills payable | 6,500 | 9,747 | | Payables for construction and equipment | 357,775 | 345,319 | | Accrued expenses | 170,564 | 135,470 | | Salaries and welfare payables | 43,194 | 33,035 | | Performance bonds | 20,514 | 12,196 | | Other tax payables | 8,277 | 16,559 | | Sales commission | 4,471 | 4,378 | | Others | 5,539 | 5,604 | | Total | 761,078 | 691,914 | - Bills payable are secured by bank acceptance notes of RMB 2,671,000 and bank deposits of RMB 5,729,000[57][58] Aging Analysis of Trade Payables and Bills Payable (As of June 30) | Aging | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | 0 – 60 days | 96,473 | 94,293 | | 61 – 90 days | 11,816 | 10,098 | | Over 90 days | 42,455 | 34,962 | | Total | 150,744 | 139,353 | 15. Borrowings As of June 30, 2020, the Group's total bank borrowings increased, including secured and unsecured loans, some backed by discounted bank acceptance notes or controlling shareholder deposits Borrowings (As of June 30) | Item | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | Bank borrowings – Secured | 84,764 | 115,354 | | Bank borrowings – Unsecured | 100,000 | 36,000 | | Total | 184,764 | 151,354 | - Bank borrowings of RMB 56,447,000 are secured by discounted bank acceptance notes[64][65] - Bank borrowings of RMB 28,317,000 (denominated in HKD) are secured by bank deposits provided by controlling shareholder Yi Xing Group Limited[64][65] 16. Related party transactions The Group's related party transactions primarily involve key management compensation, with H1 2020 short-term benefits and retirement contributions totaling RMB 893,000 Related Party Transactions (For the six months ended June 30) | Item | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | Short-term benefits | 875 | 875 | | Contributions to retirement benefit plans | 18 | 80 | | Total | 893 | 955 | 17. Event after the reporting period Post-reporting period, Jinyuandong, a wholly-owned subsidiary, formed a JV with Musashino Chemical Laboratory to establish Shouguang Juneng Musashino Biotechnology Co., Ltd., focusing on R&D, production, and sales of lactic acid esters and related products - The company's indirect wholly-owned subsidiary, Shouguang Jinyuandong Modified Starch Co., Ltd., entered into a joint venture agreement with Musashino Chemical Laboratory, Ltd. to establish Shouguang Juneng Musashino Biotechnology Co., Ltd[68][69] - Juneng Musashino has a registered capital of RMB 100,000,000 and primarily engages in the R&D, production, and sales of lactic acid esters and other related products[68][69] Management Discussion and Analysis This section analyzes the company's industry, business development, segment performance, financial position, cost structure, liquidity, human resources, and corporate governance, offering a cautiously optimistic outlook INDUSTRY OVERVIEW AND COMPANY DEVELOPMENT The corn starch and deep processing industry faces challenges from swine fever, overcapacity, trade tensions, and COVID-19, but the company is cautiously optimistic due to a strong balance sheet, new facilities, and a JV for lactic acid market expansion - The corn starch and deep processing industry faces multiple challenges including swine fever, severe overcapacity, China-US trade tensions, and the COVID-19 pandemic, with an uncertain recovery outlook[71] - The company's new lysine production facility was completed and gradually commenced mass production in the first half of 2020[71] - The company entered into a joint venture agreement with Musashino Chemical Laboratory to establish Shouguang Juneng Musashino Biotechnology Co., Ltd., aiming to enhance innovation and expand into the lactic acid downstream market[71] BUSINESS REVIEW In H1 2020, the Group saw significant growth in corn starch and by-product production/sales, with new lysine facilities in mass production, but corn starch and starch sugar prices were impacted by oversupply and weak demand - Upstream Products: Production and sales of corn starch and its related by-products recorded substantial growth, primarily due to the full-year operation of Jinyumi Biotechnology's new facilities[71] - Corn starch selling prices were difficult to adjust due to oversupply, but strong demand for corn starch by-products (e.g., corn germ, corn bran, and corn gluten meal) led to price increases to offset rising corn kernel costs[71][73] - Fermentation and Downstream Products: The new lysine production facility successfully entered mass production in Q2 2020, but lysine market prices were severely impacted by weak demand in the animal feed market[74][77] - Starch sugar performance was also affected by oversupply and weak market demand, while other fermentation and downstream products performed relatively stably[75][78] FINANCIAL PERFORMANCE The Group's revenue significantly increased to RMB 3,850 million, profit after tax rose to RMB 112 million, and gross margin improved to 7.4%, driven by Jinyumi Biotechnology's full-year operations and cost-reducing facilities - The Group's revenue significantly increased to approximately RMB 3,850 million (2019: RMB 2,872 million), primarily benefiting from Jinyumi Biotechnology's full-year operations[76] - Gross margin increased by 2 percentage points to 7.4% (2019: 5.4%), with gross profit significantly rising to approximately RMB 285 million (2019: RMB 154 million)[76] - Profit after tax significantly increased to approximately RMB 112 million (2019: RMB 37 million)[76] - Basic earnings per share were RMB 0.0171 (2019: RMB 0.0064)[76] SEGMENT PERFORMANCE Upstream products revenue grew 33.8% with increased corn starch sales and slightly higher average prices, while fermentation and downstream products also grew, with lysine sales up significantly despite weak market demand Upstream Products Segment Performance (For the six months ended June 30) | Indicator | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | Revenue | 2,980,713 | 2,227,610 | | Gross profit | 205,120 | 106,392 | | Gross margin | 6.9% | 4.8% | - Upstream products segment revenue significantly increased by 33.8%, with corn starch sales rising substantially to 910,863 tonnes (2019: 719,823 tonnes), and average selling price slightly up by 0.7% to approximately RMB 2,170 per tonne[82][83] Fermentation and Downstream Products Segment Revenue (For the six months ended June 30) | Product | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | Lysine | 543,375 | 335,141 | | Starch sugar | 159,586 | 159,784 | | Modified starch | 146,241 | 130,291 | | Others | 20,092 | 19,382 | | Total | 869,294 | 644,598 | - Lysine product sales significantly increased to approximately 106,606 tonnes (2019: 66,598 tonnes), with average selling price slightly up to approximately RMB 5,097 per tonne[87][88] - Modified starch revenue increased by 12.3% to approximately RMB 146 million[90][97] Cost of sales Cost of sales primarily comprises corn kernels (86.1%) and utility expenses (7.3%), with Shandong corn kernel prices rising, stable electricity/steam costs, and no hedging activities - Key cost components were corn kernels (approximately 86.1%) and utility expenses (approximately 7.3%)[92][98] - The average price of corn kernels in Shandong was approximately RMB 1,842 per tonne (2019: RMB 1,738 per tonne)[92][96] - The Group did not enter into any forward/futures contracts to hedge against corn kernel price fluctuations during the review period[93][99] REVIEW OF OTHER OPERATIONS Distribution and administrative expenses significantly increased due to higher production capacity, driven by delivery, logistics, and staff costs, while other net income from government grants and scrap sales also rose - Distribution and administrative expenses significantly increased due to the Group's rising production capacity, with some expenses reclassified to administrative expenses to reflect changes in departmental functions[94][100] Distribution Expenses (For the six months ended June 30) | Item | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | Delivery and logistics | 81,827 | 59,730 | | Marketing expenses | 7,212 | 5,939 | | Staff costs | 2,951 | 3,219 | | Others | 1,479 | 1,752 | | Total | 93,469 | 70,640 | Administrative Expenses (For the six months ended June 30) | Item | 2020 (RMB Thousand) | 2019 (RMB Thousand) | | :--- | :--- | :--- | | Staff costs | 48,398 | 38,127 | | Depreciation and amortization | 13,300 | 4,737 | | Research and development costs | 13,111 | 19,101 | | Government levies | 11,221 | 8,777 | | Others | 13,222 | 8,615 | | Total | 99,252 | 79,357 | - Other net income increased to approximately RMB 42 million (2019: RMB 37 million), with key items including amortization of government grants, scrap sales, and reversal of payables[105][106] Liquidity, financial resources and capital structure The Group maintains sufficient working capital, with RMB-denominated cash and cash equivalents, total borrowings of RMB 185 million (some secured), and slight decreases in current/quick ratios alongside an increased gearing ratio - The Directors believe the Group's available working capital is sufficient for current needs, with cash and cash equivalents largely denominated in RMB[111] - As of June 30, 2020, approximately RMB 157 million of borrowings were denominated in RMB, and approximately RMB 28 million in HKD, all bearing fixed interest rates and due within one year[112][114] Key Financial Performance Indicators | Indicator | Unit | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | :--- | | Trade receivables turnover | days | 27 | 26 | | Trade payables turnover | days | 7 | 8 | | Inventory turnover | days | 32 | 27 | | Current ratio | times | 1.6 | 1.7 | | Quick ratio | times | 1.0 | 1.2 | | Gearing ratio – borrowings to total assets | % | 4.0 | 3.4 | Human resources and remuneration policies As of June 30, 2020, the Group employed 2,321 staff, with total staff costs of RMB 97 million, maintaining unchanged remuneration policies since 2019, and no share options granted - As of June 30, 2020, the Group employed 2,321 staff (2019: 2,349 staff)[113][115] - For the six months ended June 30, 2020, total staff costs (including Directors' emoluments) were approximately RMB 97 million (2019: RMB 97 million)[113][115] - The company's remuneration policies have remained unchanged since the 2019 annual report, and no share options were granted[113][115] Financial management, treasury policy and foreign currency exposure The Group's financial management, treasury policy, and foreign currency exposure remain consistent with 2019 annual report disclosures - The Group's financial management, treasury policy, and foreign currency exposure have not significantly changed compared to the information disclosed in the 2019 annual report[116] Pledge of assets As of June 30, 2020, bills payable were secured by bank acceptance notes and deposits, with no land use rights or buildings pledged for bank credit - As of June 30, 2020, bills payable were secured by bank acceptance notes of RMB 2,671,000 and bank deposits of RMB 5,729,000[117] - The Group had not pledged any land use rights or buildings as collateral for bank credit[117] Contingent liabilities As of June 30, 2020, the Group had no significant contingent liabilities - As of June 30, 2020, the Group had no significant contingent liabilities[117] Disclosure of Additional Information This section discloses H1 2020 additional information, including interim dividend policy, directors' and chief executive's interests, substantial shareholders' interests, listed securities dealings, corporate governance, and directors' securities transaction code compliance INTERIM DIVIDEND The Board does not recommend an interim dividend for H1 2020 - The Board does not recommend an interim dividend for the six months ended June 30, 2020 (2019: nil)[119][121] DIRECTORS' AND CHIEF EXECUTIVE'S INTERESTS As of June 30, 2020, directors and the chief executive held interests in the company's or associated corporations' shares, with Mr. Tian Qixiang holding 61.79% via a controlled corporation Directors' and Chief Executive's Interests (As of June 30) | Director Name | Company/Associated Corporation | Capacity/Nature of Interest | Number and Class of Securities Held | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Mr. Tian Qixiang | The Company | Interest in controlled corporation | 3,705,385,194 ordinary shares | 61.79% | | Mr. Tian Qixiang | Yi Xing Group Limited | Beneficial owner | 131 ordinary shares | 54.58% | | Mr. Gao Shijun | Yi Xing Group Limited | Beneficial owner | 60 ordinary shares | 25.00% | | Mr. Yu Yingquan | Yi Xing Group Limited | Beneficial owner | 1 ordinary share | 0.42% | - Save as disclosed, as of June 30, 2020, no directors, chief executive, or their respective associates held any interests or short positions in the shares, underlying shares, or debentures of the company or any of its associated corporations that were required to be recorded[126][130] INTERESTS OF THE SUBSTANTIAL SHAREHOLDERS AND OTHER PERSONS As of June 30, 2020, Yi Xing Group Limited, a substantial shareholder, held 61.79% of the company's issued share capital, with Mr. Tian Qixiang deemed interested Interests of Substantial Shareholders and Other Persons (As of June 30) | Shareholder Name | Capacity/Nature of Interest | Number of Shares/Underlying Shares | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Yi Xing Group Limited | Beneficial owner | 3,705,385,194 (L) | 61.79% | - Yi Xing Group Limited is approximately 54.58% owned by Mr. Tian Qixiang, the company's Executive Director and Chairman, who is deemed to have an interest in all shares held by Yi Xing Group Limited[129] PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES During the review period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the review period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[128][132] CORPORATE GOVERNANCE The company complied with the Listing Rules' Corporate Governance Code for H1 2020, except for Chairman Mr. Tian Qixiang's absence from the 2020 AGM due to other business activities - The company complied with the applicable code provisions set out in the Corporate Governance Code in Appendix 14 of the Listing Rules[134][136] - The only exception was Chairman Mr. Tian Qixiang's absence from the 2020 AGM due to other business activities[134][136] MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS The company adopted a securities dealing code no less exacting than the Model Code, with all directors confirming compliance during the review period - The company adopted its own code for securities dealings, with terms no less exacting than the Model Code[138] - Following specific enquiries, all Directors confirmed to the company that they had complied with the required standards set out in the dealing code throughout the review period[138] REVIEW OF INTERIM FINANCIAL STATEMENTS The Audit Committee reviewed and discussed the H1 2020 unaudited condensed consolidated interim financial statements with management and auditor Shinewing (HK) CPA Limited - The Audit Committee reviewed and discussed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2020, with the company's management and auditor Shinewing (HK) CPA Limited[138] - Shinewing (HK) CPA Limited conducted its review of these statements in accordance with Hong Kong Standard on Review Engagements 2410[138] Corporate Information This section provides key corporate information for China Starch Holdings Limited, including executive and independent non-executive directors, company secretary, authorized representatives, registered office, Hong Kong principal place of business, auditor, legal advisors, principal bankers, and share registrar - The company's Board of Directors includes Executive Directors Mr. Tian Qixiang (Chairman), Mr. Gao Shijun (Chief Executive Officer), Mr. Liu Xianggang, Mr. Yu Yingquan, and Independent Non-executive Directors Professor Hua Qiang, Mr. Sun Mingdao, and Mr. Yu Jihua[140] - The Company Secretary is Mr. Leung Siu Hong, and the auditor is Shinewing (HK) CPA Limited[140] - Principal bankers include Bank of China, China Construction Bank, Industrial and Commercial Bank of China, and Industrial Bank Co., Ltd[142]