Fufeng Group Limited — Interim / Quarterly Report 2023

Sep 21, 2023

CONTENTS 目錄

Financial Highlights 財務摘要 ²

Management Review 管理層回顧

Market Overview 市場概覽 ³ Business and Financial Review 業務及財務回顧 ⁴

Future Plan and Progress

未來計劃及進展 ¹⁸ Other Information

其他資料 ¹⁹

Financials 財務資料

Interim Condensed Consolidated Financial Statements 中期簡明合併財務報表 ²⁶

Notes to the Interim Condensed Consolidated Financial Statements 中期簡明合併財務報表附註 ³³

Corporate Information 公司資料 ⁷²

Glossary 詞彙 ⁷⁴

FINANCIAL HIGHLIGHTS 財務摘要

Turnover

Profit Attributable to Shareholders 股東應佔溢利

Revenue Analysis 收入分析

Market Overview

Economic Environment

In the Period, the economy in China rebounded due to the end of the COVID-19 restrictions. According to the National Bureau of Statistics of China, China recorded GDP growth of 4.5% in the first quarter of 2023 and 6.3% in the second quarter of 2023 respectively, or 5.5% in the six-month period. However, the GDP growth was lower than expected. According to the International Monetary Fund forecast, China's GDP is expected to grow at 5.2% for 2023.

Major Raw Materials

According to the data of Sublime China Information (卓創資訊), corn price fluctuated between the price range of RMB2,636 to RMB2,816 per tonne (including VAT). Corn supply and demand in China were approximately 188 million tonnes and 116 million tonnes respectively in the Period.

The PRC government has made the efforts to secure stable supply of coal. China has also increased coal import from overseas. According to the data of China National Coal Association (中國煤炭工業協 會), coal supply in China increased by 4.4% to approximately 2.3 billion tonnes and coal import increased by 93% to approximately 222 million tonnes in the Period, as compared to the Corresponding Period.

Major Products

MSG price maintained at a high level in the first quarter of 2023 due to strong demand. According to the data of Sublime China Information, MSG supply and demand were approximately 620,000 tonnes and 630,000 tonnes respectively, with ASP of approximately RMB9,435 per tonne (including VAT) in the first quarter of 2023 in China. However, MSG price dropped in the second quarter of 2023 due to increased supply of MSG and weak demand. MSG supply and demand were approximately 654,000 tonnes and 587,000 tonnes respectively in the second quarter of 2023. ASP of MSG was approximately RMB8,667 per tonne (including VAT) as at 30 June 2023.

Xanthan gum is classified into food grade and industrial grade, of which the industrial grade is mainly applied for oil extraction. Due to the strong demand from overseas, particularly from the oil extraction sector, xanthan gum recorded strong growth in export sales and price.

市場概覽

經濟環境

期內,中國經濟因新冠限制措施結束而出現 反彈。根據中國國家統計局的資料,中國於 二零二三年第一季度及二零二三年第二季度 的國內生產總值分別增長4.5%及6.3%,或於 六個月期間增長5.5%。然而,國內生產總值 增長低於預期。據國際貨幣基金組織預測, 中國二零二三年的國內生產總值增速預計為 5.2%。

主要原材料

卓創資訊數據顯示,玉米價格於每噸人民幣 2,636元至人民幣2,816元(含增值稅)的價格 區間波動。期內,中國玉米供應量及需求量 分別約為188,000,000噸及116,000,000噸。

中國政府努力確保煤炭穩定供應。中國亦增 加海外的煤炭進口量。中國煤炭工業協會數 據顯示,期內中國煤炭供應量較去年同期增 加4.4%至約23億噸,而煤炭進口量較去年同 期增加93%至約222,000,000噸。

主要產品

由於需求強勁,二零二三年第一季度味精價 格維持在高位。根據卓創資訊的數據,於二 零二三年第一季度,中國味精的供應量及需 求量分別約為620,000噸及630,000噸,平均 售價約為每噸人民幣9,435元(含增值稅)。 然而,由於味精供應增加但需求疲軟,二零 二三年第二季度味精價格下跌。二零二三 年第二季度味精供應量及需求量分別約為 654,000噸及587,000噸。於二零二三年六月 三十日,味精的平均售價約為每噸人民幣8,667 元(含增值稅)。

黃原膠分為食品級別和工業級別,其中工業 級別主要用於石油開採。由於海外(特別是石 油開採行業)的需求暢旺,黃原膠出口銷售及 價格均錄得強勁增長。

For the animal nutrition products, threonine and lysine were in challenging conditions due to the oversupply situation. However, ASP of threonine and lysine increased in the second quarter of 2023 due to the production inspection and maintenance of some suppliers, which limited the supply in the market.

Business and Financial Review

Overall Performance

The table below illustrates the growth of the Group's revenue:

對於動物營養產品,蘇氨酸及賴氨酸因供應 過剩而面臨嚴峻挑戰。然而,由於部分供應 商進行生產檢驗及維護,限制了市場供應, 二零二三年第二季度蘇氨酸及賴氨酸的平均 售價有所上升。

業務及財務回顧

整體表現 下圖說明本集團的收入增長:

The Group's revenue increased by 5.0% to approximately RMB13,580.1 million in the Period, as compared to the Corresponding Period, primarily due to increased revenue contribution from the business segments of food additives, colloid and high-end amino acid.

The Group's overall gross profit decreased by 17.4% to approximately RMB2,956.8 million in the Period, as compared to the Corresponding Period, primarily due to the decreases in the gross profit of food additives and animal nutrition segments.

Facing the challenging market situation, the Group maintained the growth momentum by increasing the sales volume in major products, despite the lower ASP.

The average price of corn kernels, the key material cost, in the Period was approximately RMB2,397 per tonne, which maintained a stable price trend as compared to the second half of 2022 (increased by 1.6% as compared to 2H 2022). It increased by 6.0% as compared to the Corresponding Period.

Profit attributable to the Shareholders decreased by 24.1% to approximately RMB1,537.9 million in the Period, as compared to the Corresponding Period.

期內,本集團的收入較去年同期增加5.0%至 約人民幣13,580,100,000元,主要由於食品 添加劑、膠體及高檔氨基酸業務分部的收入 貢獻增加所致。

期內,本集團的整體毛利較去年同期減少 17.4%至約人民幣2,956,800,000元,主要由 於食品添加劑及動物營養分部的毛利下降。

面對嚴峻的市場形勢,儘管平均售價較低, 但本集團通過提升主要產品的銷量保持增長 勢頭。

期內玉米顆粒平均價格(主要材料成本)約為 每噸人民幣2,397元,與二零二二年下半年相 比維持穩定的價格趨勢(較二零二二年下半年 增加1.6%)。其較去年同期增加6.0%。

期內,股東應佔溢利較去年同期減少24.1% 至約人民幣1,537,900,000元。

Analysis of Five Product Segments		五個產品分部分析
The Group's products are organised into five product segments:		本集團的產品分類為五個產品分部:
Segment Food additives Animal nutrition	Main products of the segment MSG Threonine, lysine, corn refined products	分部 食品添加劑 動物營養	分部的主要產品 味精 蘇氨酸、賴氨酸、 玉米提煉產品
High-end amino acid	Tryptophan, Valine, leucine, isoleucine, glutamine, hyaluronic acid	高檔氨基酸	色氨酸、纈氨酸、亮氨酸、 異亮氨酸、谷氨醯胺及 透明質酸
Colloid	Xanthan gum	膠體	黃原膠
Others	Fertilisers	其他	肥料

Detailed sales and gross profit analysis by segment for the Period and Corresponding Period:

For the six months ended 30 June 2023

截至二零二三年六月三十日止六個月

利分析:

按分部劃分的期內及去年同期詳細銷售及毛

		Food	Animal	High-end
		additives	nutrition	amino acid	Colloid	Others	Total
		食品添加劑	動物營養	高檔氨基酸	膠體	其他	總計
		RMB'000	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000
		人民幣千元	人民幣千元	人民幣千元	人民幣千元	人民幣千元	人民幣千元
Revenue	收入	6,558,505	4,090,697	827,369	1,632,283	471,239	13,580,093
Gross profit	毛利	971,795	594,537	298,819	997,417	94,192	2,956,760
Gross profit margin	毛利率	14.8%	14.5%	36.1%	61.1%	20.0%	21.8%

For the six months ended 30 June 2022

截至二零二二年六月三十日止六個月

		Food	Animal	High-end
		additives	nutrition	amino acid	Colloid	Others	Total
		食品添加劑	動物營養	高檔氨基酸	膠體	其他	總計
		RMB'000	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000
		人民幣千元	人民幣千元	人民幣千元	人民幣千元	人民幣千元	人民幣千元
Revenue	收入	6,065,473	4,754,189	534,843	940,228	636,064	12,930,797
Gross profit	毛利	1,270,156	1,397,838	213,178	475,305	224,143	3,580,620
Gross profit margin	毛利率	20.9%	29.4%	39.9%	50.6%	35.2%	27.7%

1. Food additives segment

Revenue of food additives segment increased by 8.1% to approximately RMB6,558.5 million in the Period, as compared to the Corresponding Period, mainly due to stable revenue contribution from MSG and increased revenue contribution from starch sweeteners. Revenue of starch sweeteners increased due to higher demand in the Period.

Gross profit of food additives segment decreased by 23.5% to approximately RMB971.8 million in the Period, as compared to the Corresponding Period, mainly due to decreased gross profit contribution from MSG. Gross profit margin of food additives segment was 14.8% in the Period, representing a decrease of 6.1 percentage points, as compared to the Corresponding Period.

Key products:

MSG: Revenue of MSG was relatively stable and was approximately RMB4,996.0 million in the Period. The ASP of MSG was approximately RMB8,168 per tonne in the Period, representing a decrease of approximately 3.6% as compared to the Corresponding Period. The sales volume of MSG was approximately 611,681 tonnes in the Period, representing an increase of approximately 3.6%, as compared to the Corresponding Period. Demand recovery of MSG in the Period was lower than expected. Although ASP of MSG dropped, we still managed to increase our market share in the Period. We sold 611,681 tonnes of MSG in the Period, which accounted for approximately 50% of the market share referring to the data of Sublime China Information (total demand of 1,217,000 tonnes in 1H 2023).

2. Animal nutrition segment

Revenue of animal nutrition segment dropped by 14.0% to approximately RMB4,090.7 million in the Period, as compared to the Corresponding Period. In the Corresponding Period, overseas customers purchased a lot of animal nutrition products due to the supply chain disruption caused by COVID-19, which caused significant increases of ASP of threonine and lysine in the Corresponding Period. However, the ASP of threonine and lysine dropped in the second half of 2022 due to the ease of supply chain disruption. The animal nutrition market was in oversupply situation due to the increase of capacity of the competitors in the Period.

Gross profit of animal nutrition segment decreased by 57.5% to approximately RMB594.5 million in the Period, as compared to the Corresponding Period, mainly due to decreased gross profit contribution from threonine and lysine. Gross profit margin of animal nutrition segment was 14.5% in the Period, representing a decrease of 14.9 percentage points, as compared to the Corresponding Period.

1. 食品添加劑分部

期內,食品添加劑分部的收入較去年同 期增加8.1%至約人民幣6,558,500,000 元,主要由於味精的收入貢獻穩定以及 澱粉甜味劑的收入貢獻增加所致。澱粉 甜味劑收入增加是由於期內需求增加。

期內,食品添加劑分部的毛利較去年同 期減少23.5%至約人民幣971,800,000 元,主要由於味精毛利貢獻下降。期內 食品添加劑分部的毛利率為14.8%,較 去年同期減少6.1個百分點。

主要產品:

味精:期內,味精的收入相對穩定且約 為人民幣4,996,000,000元。期內,味精 的平均售價每噸約為人民幣8,168元,較 去年同期減少約3.6%。期內,味精的銷 量約為611,681噸,較去年同期增加約 3.6%。期內味精需求回升幅度低於預期。 儘管味精的平均售價有所下降,我們在 期內的市場份額仍然有所增加。我們於 期內售出味精611,681噸,根據卓創資 訊的數據所述,佔市場份額約50%(二零 二三年上半年總需求量為1,217,000噸)。

2. 動物營養分部

期內,動物營養分部的收入較去年同期 下 降 14.0% 至約人民幣 4,090,700,000 元。於去年同期,由於新冠造成供應鏈 中斷,海外客戶購買大量動物營養產品, 導致去年同期蘇氨酸及賴氨酸的平均售 價大幅增加。然而,由於供應鏈中斷改善, 蘇氨酸及賴氨酸的平均售價在二零二二 年下半年有所下降。於期內,由於競爭 對手產能的增加,動物營養市場處於供 過於求的局面。

期內,動物營養分部的毛利較去年同期 減少57.5%至約人民幣594,500,000元, 主要由於蘇氨酸及賴氨酸的毛利貢獻 減少。期內,動物營養分部的毛利率為 14.5%,較去年同期減少14.9個百分點。

Key products:

Threonine: Revenue of threonine dropped by 36.0% to approximately RMB884.6 million in the Period, as compared to the Corresponding Period, primarily due to the decreased ASP and sales volume of threonine. The ASP of threonine was approximately RMB8,424 per tonne in the Period, representing a decrease of 20.2%, as compared to the Corresponding Period. Sales volume of threonine was approximately 105,012 tonnes in the Period, representing a decrease of 19.8%, as compared to the Corresponding Period.

Lysine: Revenue of lysine dropped by 11.2% to approximately RMB907.6 million in the Period, as compared to the Corresponding Period. The sales volume was approximately 153,311 tonnes in the Period, representing an increase of approximately 16.5% as compared to the Corresponding Period.

3. High-end amino acid segment

Revenue of high-end amino acid segment increased by 54.7% to approximately RMB827.4 million in the Period, as compared to the Corresponding Period, mainly due to increased sales volume of high-end amino acid products.

Gross profit of high-end amino acid segment increased by 40.2% to approximately RMB298.8 million in the Period, as compared to the Corresponding Period. Gross profit margin of high-end amino acid segment was 36.1% in the Period, representing a decrease of 3.8 percentage points, as compared to the Corresponding Period.

We continued our effort to improve the client portfolio and increased the market share of key products, despite the lower ASP and gross profit margin. We also launched new high-end amino acid products in the Period, such as citrulline, arginine, shikimic acid and phenylalanine.

主要產品:

蘇氨酸:期內蘇氨酸收入較去年同期下 降36.0%至約人民幣884,600,000元,主 要乃由於蘇氨酸的平均售價及銷量減少。 蘇氨酸平均售價於期內每噸約為人民幣 8,424元,較去年同期減少20.2%。蘇氨 酸的期內銷量約為105,012噸,較去年 同期減少19.8%。

賴氨酸:期內,賴氨酸的收入較去年同 期下降11.2%至約人民幣907,600,000 元。期內,銷量約為153,311噸,較去年 同期增加約16.5%。

3. 高檔氨基酸分部

期內,高檔氨基酸分部收入較去年同期 增加54.7%至約人民幣827,400,000元, 乃主要由於高檔氨基酸產品的銷量增加 所致。

期內,高檔氨基酸分部的毛利較去年同 期增加40.2%至約人民幣298,800,000 元。期內,高檔氨基酸分部的毛利率為 36.1%,較去年同期減少3.8個百分點。

儘管平均售價及毛利率降低,我們繼續 努力改善客户組合,增加主要產品的市 場份額。我們亦於期內推出新的高檔氨 基酸產品,例如瓜氨酸、精氨酸、莽草 酸及苯丙氨酸。

4. Colloid segment

Revenue of colloid segment increased by 73.6% to approximately RMB1,632.3 million in the Period, as compared to the Corresponding Period, mainly due to increased revenue of xanthan gum as the recovery of oil demand boosted the sales volume and ASP of xanthan gum. The ASP of xanthan gum was approximately RMB40,864 per tonne in the Period, representing an increase of 44.2%, as compared to the Corresponding Period. We provided tailor-made solutions for our industrial clients with stable demand.

Gross profit of colloid segment increased by 109.8% to approximately RMB997.4 million in the Period, as compared to the Corresponding Period, mainly due to increased gross profit contribution from xanthan gum. Gross profit margin of colloid segment was 61.1% in the Period, representing an increase of 10.5 percentage points, as compared to the Corresponding Period.

5. Others

Revenue of other products dropped by 25.9% to approximately RMB471.2 million in the Period, as compared to the Corresponding Period, mainly due to decreased revenue of fertilisers.

Gross profit of other products dropped by 58.0% to approximately RMB94.2 million in the Period, as compared to the Corresponding Period, mainly due to decreased gross profit of fertilisers. Gross profit margin of other products was 20.0% in the Period, representing a decrease of 15.2 percentage points, as compared to the Corresponding Period.

4. 膠體分部

期內,膠體分部收入較去年同期增加 73.6%至約人民幣1,632,300,000元,主 要由於石油需求回暖帶動黃原膠的銷量 及平均售價上升,令黃原膠收入提高。 期內黃原膠平均售價約為每噸人民幣 40,864元,較去年同期增長44.2%。我 們為工業客戶提供量身定制的解決方案, 產品需求穩定。

期內膠體分部的毛利較去年同期增加 109.8%至約人民幣997,400,000元,主 要由於黃原膠的毛利貢獻增加所致。期 內膠體分部的毛利率為61.1%,較去年 同期增長10.5個百分點。

1. 其他

期內,其他產品產生的收入較去年同期 下降25.9%至約人民幣471,200,000元, 乃主要由於肥料的收入減少。

期內其他產品的毛利較去年同期下降 58.0%至約人民幣94,200,000元,主要 由於肥料的毛利減少。期內其他產品的 毛利率為20.0%,較去年同期減少15.2 個百分點。

Analysis of Key Production Costs Production costs

主要生產成本分析

生產成本

	Six months ended 30 June 截至六月三十日止六個月
			2023 二零二三年	2022 二零二二年	Change 變動
			% of total production costs		% of total production costs
		RMB'000 人民幣千元	佔總生產成本 的百分比	RMB'000 人民幣千元	佔總生產成本 的百分比	%
Major raw materials • Corn kernels	主要原材料 玉米顆粒 •	6,194,431	57.9	5,640,421	55.5	9.8
Energy • Coal	能源 煤炭 •	1,889,907	17.6	1,638,971	16.1	15.3

Corn kernels

In the Period, corn kernels accounted for approximately 57.9% (Corresponding Period: 55.5%) of the total cost of production. The average price of corn kernels, the key material cost, in the Period was approximately RMB2,397 per tonne, which maintained a stable price trend as compared to the second half of 2022 (increased by 1.6% as compared to 2H 2022). It increased by 6.0% as compared to the Corresponding Period.

The total cost of corn kernels increased by 9.8% in the Period, due to the increases in the volume of corn consumption and corn price, as compared to the Corresponding Period.

玉米顆粒

期內,玉米顆粒約佔總生產成本的57.9%(去 年同期:55.5%)。期內玉米顆粒平均價格(主 要材料成本)約為每噸人民幣2,397元,與二 零二二年下半年相比維持穩定的價格趨勢(較 二零二二年下半年增加1.6%)。其較去年同 期增加6.0%。

期內,玉米顆粒的總成本增加9.8%,乃由於 玉米消費量及玉米價格較去年同期有所增長。

The following chart shows the price trend of corn kernels from the first half of 2020 to the Period:

下圖列示自二零二零年上半年至期內玉米顆 粒的價格趨勢:

Energy cost

The coal cost is the main energy cost. Coal accounted for approximately 17.6% (Corresponding Period: 16.1%) of the total cost of production in the Period. The average unit cost of coal in the Period was approximately RMB421 per tonne, representing an increase of 3.2%, as compared to the Corresponding Period.

The Group's major production bases have our own power plants with access to the low cost coal in the regions by purchasing directly from the local coal mines with long-term contracts to guarantee our coal supply volume. As a result, our production bases were not affected by power shortages.

能源成本

煤炭成本為主要的能源成本。期內,煤炭約 佔總生產成本17.6%(去年同期:16.1%)。期 內,煤炭平均單位成本約為每噸人民幣421元, 較去年同期增加3.2%。

本集團的主要生產基地有其自身的發電廠, 通過直接自簽訂長期合約的當地煤礦中採購 煤炭,盡享該等地區低成本煤炭之利,以保 證我們的煤炭供應量。因此,生產基地並無 受到電力短缺的影響。

Production

The annual designed production capacity of each of the major products by product categories were as follows:

生產

按產品類別劃分的各主要產品的年設計產能 如下:

	Annual production capacity as at period end date 截至期末日的年產能
Product	產品	2023 二零二三年	2022 二零二二年	Change 變動
		Tonnes 噸	Tonnes 噸	% %
Food additives	食品添加劑
MSG	味精	1,330,000	1,330,000	–
Starch sweeteners	澱粉甜味劑	720,000	720,000	–
Animal nutrition	動物營養
Threonine	蘇氨酸	243,000	243,000	–
Lysine	賴氨酸	280,000	200,000	40.0%
Colloid	膠體
Xanthan gum	黃原膠	80,000	65,000	23.1%

Analysis of Capacity Usage of Major Products

Business strategy of production remained unchanged and the Group set production volume according to market demand. During the Period, the capacity utilisation rate of MSG remained stable, which was around 96%. The capacity utilisation rate of threonine was around 74% in the Period, mainly due to the oversupply in the market. Lysine reached full capacity in the Period. Xanthan gum, as classified in the Colloid segment, also benefited from the recovery of market demand and reached full capacity in the Period.

主要產品產能使用分析

生產的業務策略維持不變,本集團根據市場 需求決定產量。期內味精的產能使用率維持 穩定,為96%左右。期內蘇氨酸的產能使用 率約為74%,主要是由於市場供應過剩。期 內賴氨酸的產能使用率達至滿負荷。黃原膠(分 類為膠體分部)亦受益於期內市場需求的恢復, 產能達至滿負荷。

Other Financial Information

Other income

In the Period, other income amounted to approximately RMB107.1 million, which was mainly comprised of the income from the sales of waste products, amortisation of deferred income and government grants.

Other gains

It mainly represents net foreign exchange gains generated from operating activities amounted to approximately RMB211.7 million (Corresponding Period: RMB306.2 million).

Selling and marketing expenses

Selling and marketing expenses slightly increased by approximately RMB17.7 million, or 2.0%, in the Period.

Administrative expenses

Administrative expenses increased by approximately RMB73.8 million, or 15.3%, in the Period. The increase was due to the increases in research and development expenses and employee benefit expenses.

Finance income

Finance income mainly represented interest income from bank deposits. The interest income from bank deposits and bank balance amounted to approximately RMB135.0 million, representing an increase of 510.6%. This was mainly due to higher USD deposit rate in the Period than that of the Correspond Period.

Finance costs

Finance costs mainly represent the interest expenses and foreign exchange loss. The decrease in finance costs was mainly due to the USD syndicated bank loan was fully repaid in the second half of 2022, which resulted in a decrease of RMB148.7 million, or 91.3% in the exchange losses on financing activities.

其他財務資料

其他收入

期內,其他收入約為人民幣107,100,000元, 主要包括廢料產品銷售收入、遞延收益攤銷 及政府補助。

其他收益

其他收益主要指產生自經營活動的外匯收益 淨額約人民幣211,700,000元(去年同期:人 民幣306,200,000元)。

銷售及市場推廣開支

期內,銷售及市場推廣開支輕微增加約人民 幣17,700,000元或2.0%。

行政開支

行政開支於期內增加約人民幣73,800,000元 或15.3%。該增加是由於研發開支及僱員福 利開支增加。

財務收入

財務收入主要是銀行存款的利息收入。銀 行存款及銀行結餘的利息收入約為人民幣 135,000,000元,增加510.6%。此主要由於期 內的美元存款利率高於去年同期。

財務成本

財務成本主要指利息開支及外匯虧損。財務 成本減少乃主要由於美元銀團貸款已於二零 二二年下半年悉數償還,導致融資活動匯兌 虧損減少人民幣148,700,000元或91.3%。

Depreciation

Depreciation expense of the Group was approximately RMB569.9 million in the Period, representing a decrease of RMB9.5 million, or 1.6%, as compared to the Corresponding Period.

Income tax expense

Please refer to the note 10 of interim condensed financial statement.

Dividend

The Board has resolved to pay an interim dividend of HK23.0 cents per Share for the Period, payable on or before 13 October 2023 to the Shareholders whose names appear on the register of members of the Company on 22 September 2023.

Syndicated bank facilities

On 9 March 2021, the Company (as borrower) and certain of its subsidiaries (as guarantors) entered into a facilities agreement with certain major banks (as lenders) pursuant to which the USD term and revolving loan facilities up to USD400 million with a term of 36 months from initial funding was granted to the Company at the rate of interest equivalent to the aggregate of a margin rate of 1.80% per annum plus the London interbank offered rate administered by ICE Benchmark Administration Limited on the relevant date in respect of the USD loan. The purpose of the loan was mainly to refinance the USD bonds and part of the bank loan of the Company and for the Group's general corporate purposes. The utilisation drawdown of the syndicated bank facilities, amounted to USD400 million, was made on 24 August 2021. We repaid the revolving portion of the syndicated bank loan amount of USD160 million on 29 July 2022. The balance of the syndicated bank loan amount of USD240 million was also repaid on 31 October 2022.

Except for the above, the Group had no other committed banking facilities as at 30 June 2023. The Directors believe that the Group's liquidity position is relatively stable and that the Group has sufficient banking facilities to repay or renew existing short term bank loans and other borrowings.

折舊

本集團的折舊開支於期內約為人民幣 569,900,000 元,較去年同期減少人民幣 9,500,000元,或1.6%。

所得稅開支

請參閱中期簡明財務報表附註10。

股息

期內,董事會已議決派付中期股息每股23.0 港仙,於二零二三年十月十三日或之前支付 予於二零二三年九月二十二日名列本公司股 東名冊的股東。

銀團貸款

於二零二一年三月九日,本公司(作為借款 人)及其若干附屬公司(作為擔保人)與若干 主要銀行(作為貸款人)訂立貸款協議,據 此本公司獲授最高400,000,000美元的美元 定期循環貸款融資,自初始撥資起為期36 個月,利率相當於每年1.80%的保證金率加 ICE Benchmark Administration Limited於相關 日期就美元貸款實施的倫敦銀行同業拆息 總和。貸款的目的主要為對本公司美元債券 及部分銀行貸款進行再融資,及作本集團的 一般企業用途。銀團貸款400,000,000美元 已於二零二一年八月二十四日取出動用。我 們於二零二二年七月二十九日償還銀團貸 款循環部分160,000,000美元。銀團貸款結 餘240,000,000美元亦已於二零二二年十月 三十一日償還。

除上述情況外,於二零二三年六月三十日, 本集團並無其他已承諾銀行融資。董事相信, 本集團的流動資金狀況相對穩定,且本集團 有充足銀行融資以償還或重續現有短期銀行 貸款及其他借貸。

Capital Structure, Liquidity and Financial Resources

Capital Structure and Financial Resources

The capital structure of the Group comprises share capital and bank borrowings. The Group adopted a prudent treasury policy and thus maintained a healthy liquidity position throughout the Period.

As at 30 June 2023, the Group had total bank borrowings of approximately RMB5,913.4 million (31 December 2022: RMB5,953.1 million). Bank borrowings include short term and long term bank borrowings bearing both fixed and floating interest rates. Of the total bank borrowings, approximately RMB4,965.4 million (31 December 2022: RMB5,368.6 million) were short term bank borrowings and approximately RMB948.0 million (31 December 2022: RMB584.5 million) were long term bank borrowings. The Group's bank borrowings were denominated in RMB at period end date. Depending on the needs and market situation, the Group may issue bonds and/ or raise foreign currency bank borrowings for the daily operation and investment of the Group.

As at 30 June 2023, the Group had total cash and bank balances amounting to approximately RMB7,433.2 million (31 December 2022: RMB7,639.5 million) which were mainly denominated in RMB and USD.

The Group did not use financial instruments for hedging purposes.

Liquidity

The Group met the working capital requirements by cash generated from operations and bank borrowings during the Period. The Group had a net cash inflow of approximately RMB1,332.0 million from operating activities (Corresponding Period: RMB1,149.7 million). Taking into account the cash balances together with short term bank borrowings facilities available, the Group was financially sound throughout the Period.

Net unrestricted cash after short term bank borrowings were approximately RMB1,934.3 million (31 December 2022: RMB1,639.5 million).

As at 30 June 2023, the Group's net current assets were approximately RMB6,950.7 million (31 December 2022: RMB6,464.5 million) and current ratio (current assets divided by current liabilities) was 1.79 times (31 December 2022: 1.69 times).

資本架構、流動資金及財務資源

資本架構及財務資源

本集團的資本架構包括股本及銀行借貸。本 集團採納審慎的庫務政策,因此於整個期間 保持穩健的流動資金狀況。

於二零二三年六月三十日,本集團的銀行 借貸總額約為人民幣5,913,400,000元(二零 二二年十二月三十一日:人民幣5,953,100,000 元)。銀行借貸包括短期及長期銀行借貸,並 按固定及浮動利率計息。於銀行借貸總額中, 約人民幣4,965,400,000元(二零二二年十二 月三十一日:人民幣5,368,600,000元)為短 期銀行借貸,約人民幣948,000,000元(二零 二二年十二月三十一日:人民幣584,500,000 元)為長期銀行借貸。本集團銀行借貸於期末 結算日以人民幣計值。視乎需要及市況而定, 本集團可發行債券及╱或籌集外幣銀行借貸, 用於本集團日常營運及投資。

於二零二三年六月三十日,本集團的現金 及銀行結餘總額約為人民幣7,433,200,000 元(二 零 二 二 年 十 二 月 三 十 一 日:人 民 幣 7,639,500,000元),主要以人民幣及美元計值。

本集團並無使用金融工具作對沖用途。

流動資金

於本期間,本集團以營運產生的現金及銀行 借貸撥付其營運資金需求。本集團經營活動 所得現金流入淨額約為人民幣1,332,000,000 元(去年同期:人民幣1,149,700,000元)。經 計及現金結餘及可動用短期銀行借款額度, 本集團於整個期間均維持財政穩健。

扣除短期銀行借款後的淨不受限制現金約為 人民幣1,934,300,000元(二零二二年十二月 三十一日:人民幣1,639,500,000元)。

於二零二三年六月三十日,本集團的流動 資產淨值約為人民幣6,950,700,000元(二零 二二年十二月三十一日:人民幣6,464,500,000 元),流動比率(流動資產除以流動負債)為 1.79倍(二零二二年十二月三十一日:1.69倍)。

Gearing ratio

As at 30 June 2023, the total assets of the Group amounted to approximately RMB26,888.1 million (31 December 2022: RMB26,388.6 million) whereas the total debts amounted to RMB5,971.8 million (31 December 2022: RMB6,026.7 million). The gearing ratio was approximately 22.2% (31 December 2022: 22.8%) which was calculated based on the Group's total debts over total assets. Total debts include current and non-current bank borrowings and non-current borrowings from third parties as at 30 June 2022 and 31 December 2022.

Foreign exchange exposure

Foreign currencies of the Group are received from the export sales and bank borrowings. Such proceeds are subject to foreign exchange risk before receiving and converting them into RMB. The foreign currencies received from export sales are converted into RMB depending on needs and market conditions.

During the Period, the Group recorded a net foreign exchange gains/ (losses) as follow:

資產負債比率

於二零二三年六月三十日,本集團的資產總 值約為人民幣26,888,100,000元(二零二二 年十二月三十一日:人民幣26,388,600,000 元),而債務總額則為人民幣5,971,800,000 元(二 零 二 二 年 十 二 月 三 十 一 日:人 民 幣 6,026,700,000元)。資產負債比率約為22.2% (二零二二年十二月三十一日:22.8%),其 乃按本集團債務總額除以資產總值計算。於 二零二二年六月三十日及二零二二年十二月 三十一日,債務總額包括流動和非流動銀行 借貸以及來自第三方的非流動借貸。

外匯風險

本集團的外幣乃來自出口銷售及銀行借貸。 於收取有關所得款項並將其兌換為人民幣前, 均須承受外匯風險。自出口銷售收取的外幣 按需要及市況兌換為人民幣。

期內,本集團錄得外匯收益╱(損失)淨額如 下:

		2023 二零二三年 RMB'000 人民幣千元	2022 二零二二年 RMB'000 人民幣千元
Foreign exchange gains/(losses):	外匯收益╱(損失):
– Fr om operating activities classified under	- 來自經營活動,分類為其他
other gains/(losses) (a)	收益╱(損失)(a)	211,677	306,215
– Fr om financing activities classified under	- 來自融資活動,分類為財務成本(b)
finance costs (b)		(14,135)	(162,800)
– In vestment gains from derivative financial	- 衍生金融工具產生的投資收益(c)
instruments (c)		–	68,963
Net foreign exchange gains/(losses)	外匯收益╱(損失)淨額	197,542	212,378

• a. During the Period, the Group recorded a net foreign exchange gains from operating activities amounted to approximately RMB211.7 million (Corresponding Period: RMB306.2 million). The decrease in the gains from operating activities was mainly due to the appreciation of USD to RMB was lower in the Period than that of the Corresponding Period.
• b. The USD syndicated bank loan was fully repaid in the second half of 2022, which resulted in a decrease of RMB148.7 million, or 91.3% in the exchange losses on financing activities.
• a. 期內,本集團錄得經營活動外匯收益淨 額約人民幣211,700,000元(去年同期: 人民幣306,200,000元)。經營活動收益 減少,主要是由於期內美元兌人民幣升 值幅度低於去年同期所致。
• b. 美元銀團貸款已於二零二二年下半年悉 數償還,導致融資活動匯兌虧損減少人 民幣148,700,000元或91.3%。

c. The derivative financial instruments were settled in the second half of 2022, which resulted in a decrease of RMB69.0 million in the investment gain on derivative financial instruments.

Contingent Liabilities

As at 30 June 2023, the Group had no material contingent liabilities.

Charges on assets

As at 30 June 2023, RMB490.0 million of term deposits (31 December 2022: RMB590.0 million) were pledged to certain banks to secure bank borrowings of RMB790.0 million (31 December 2022: RMB880.0 million) of the Group.

As at 30 June 2023, no term deposits were pledged as security for issuing notes payable (31 December 2022: RMB28.5 million) and security for issuing letter of guarantee (31 December 2022: RMB12.9 million) of the Group.

As at 30 June 2023, restricted bank deposits comprised of (i) amounts of RMB30.0 million (31 December 2022: nil) were pledged as security for bank borrowings of RMB100.0 million (31 December 2022: nil) of the Group and (ii) amounts of RMB12.5 million (31 December 2022: nil) were pledged as security for issuing notes payable of the Group.

Related Party Transactions

The related party transactions set out in Note 22 to the interim condensed financial statements, did not constitute a transaction which fall under the definition of "connected transaction" in Chapter 14A of Listing Rules.

Significant investment held

During the Period, the Group did not hold any significant investment.

c. 衍生金融工具於二零二二年下半年結算, 導致衍生金融工具投資收益減少人民幣 69,000,000元。

或然負債

於二零二三年六月三十日,本集團並無重大 或然負債。

資產抵押

於二零二三年六月三十日,人民幣 490,000,000元的定期存款(二零二二年十二 月三十一日:人民幣 590,000,000 元)已 抵 押予若干銀行,以取得本集團的銀行借款為 人民幣790,000,000元(二零二二年十二月 三十一日:人民幣880,000,000元)。

於二零二三年六月三十日,本集團並無已抵 押定期存款作為發行應付票據(二零二二年 十二月三十一日:人民幣28,500,000元)的抵 押品及出具擔保函(二零二二年十二月三十一 日:人民幣12,900,000元)的抵押品。

於二零二三年六月三十日,受限制銀行存款 包括(i)已抵押人民幣30,000,000元(二零二二 年十二月三十一日:無)作為本集團銀行借 款人民幣100,000,000元(二零二二年十二月 三十一日:無)的抵押品及(ii)已抵押人民幣 12,500,000元(二零二二年十二月三十一日: 無)作為本集團發行應付票據的抵押品。

關連方交易

中期簡明財務報表附註22所載的關連方交易 並不構成符合上市規則第十四A章「關連交易」 定義的交易。

持有的重大投資

期內,本集團並無持有任何重大投資。

Future Plan and Progress

1. We will continue the "Dual High-quality Objectives" as our strategic mission for 2023, including (1) high-quality internationalisation by accelerating the establishment of a more complete international production and sales network; and (2) high-quality operation of the existing production capacity to maintain and consolidate our leading position in the domestic market so that we will advance our business expansion and become a global industrial powerhouse.

Progress: We are planning to expand MSG capacity in China in order to fully utilize our advantage in the chemical cost and further strengthening our market leadership. We are also doing the feasibility studies in the U.S. and Europe for the construction of production bases.

1. We will continue to improve our production technology in order to reduce the unit production cost.

Progress: It's in continuous enhancement.

1. We will adjust our regional marketing strategy and establish three regional marketing centers in America, Europe and Southeast Asia to serve our overseas customers directly.

Progress: We have launched the three regional marketing centers in the U.S., Netherlands and Vietnam.

1. We will improve the logistics system, further optimise the logistics process and reduce the logistics cost.

Progress: It's in continuous enhancement.

1. We are revamping the plant acquired in 2020 to produce chemicals used in our products to reduce production costs. We will also consider increasing the production capacity of key products to reinforce our market position.

Progress: It is expected that the chemical plant will start the production in Q4 2023. In order to fully utilise the advantage of our chemical cost, we will add 400,000 tonnes of MSG capacity in our Hulunbeier Base. It is expected the new MSG capacity can be launched in Q4 2023.

1. Despite the delay in the construction of the U.S. project, we are continuing our internationalisation plan by conducting feasibility studies to establish a production base in another location.

Progress: We are doing the feasibility studies in the U.S. and Europe for the construction of production bases.

未來計劃及進展

1. 我們將繼續將「雙高」作為二零二三年的 戰略任務,包括(1)高質量實施國際化, 加快落實更為完善的國際化生產及銷售 網絡;及(2)確保現有產能的高質量運行, 繼續鞏固我們於國內市場的領導地位, 同步推進「做大」和「做強」。

進展:我們計劃擴大中國的味精產能, 以充分利用我們在化工成本方面的優勢, 並進一步加強我們的市場領導地位。我 們亦於美國及歐洲進行生產基地建設的 可行性研究。

1. 我們將繼續改進生產技術,以降低單位 生產成本。

進展:持續改進中。

1. 我們將調整區域營銷戰略,並將於美洲、 歐洲及東南亞成立三大區域營銷中心, 旨在直接服務我們的海外客戶。

進展:我們已於美國、荷蘭及越南設立 三個區域營銷中心。

1. 我們將完善物流體系、進一步優化物流 流程及將物流成本降低。

進展:持續完善中。

1. 我們正在改造二零二零年收購的廠房, 生產我們產品中使用的化學品,以降低 生產成本。我們還將考慮增加主要產品 的產能,以鞏固我們的市場地位。

進展:預計該化工廠將於二零二三年第 四季度投產。為充分利用化學品成本優 勢,我們將於呼倫貝爾基地增加400,000 噸味精產能。預計新的味精產能可於二 零二三年第四季度推出。

1. 儘管美國項目建設有所推遲,但我們仍 在進行在其他地點建立生產基地的可行 性研究,以繼續推進我們的國際化計劃。

進展:我們正於美國及歐洲進行生產基 地建設的可行性研究。

Other Information

Material acquisition or disposal of subsidiary and associated company

The Group had no material acquisition or disposal of subsidiaries or associated companies for the Period.

Employees

As at 30 June 2023, the Group had approximately 16,500 employees. Employees' remuneration was paid in accordance with relevant policies in the PRC. Appropriate salaries and bonuses were paid which were commensurate with the actual practices of the Group. Other corresponding benefits include pension, unemployment insurance, housing allowance, etc. Please refer to the paragraph headed "Share option schemes' under the "Other information" section below for the share options granted to certain employees of the Group pursuant to the New Share Option Scheme.

Directors and chief executive emoluments

During the Period, the Board and Remuneration Committee approved, with effect from 1 April 2023, the increase in the annual remuneration of the Executive Directors by the following amounts which is determined in accordance with the market situation and the performance from time to time.

其他資料

附屬公司及聯營公司的重大收購或出售

本集團於期內並無進行任何附屬公司或聯營 公司的重大收購或出售事項。

僱員

於二零二三年六月三十日,本集團僱用約 16,500名僱員。僱員薪酬根據中國有關政策 支付。本集團按實際常規支付適當薪金及花 紅。其他相關福利包括退休金、失業保險及 住房津貼等。關於根據新購股權計劃授予若 干本集團僱員的購股權,請參閱下文「其他資 料」一節下「購股權計劃」一段。

董事及最高行政人員酬金

於期內,董事會及薪酬委員會批准自二零 二三年四月一日起,根據市況及不時表現釐 定,將執行董事的年度薪酬增加以下數額。

		RMB'000 人民幣千元
Mr. Li Xuechun	李學純先生	1,428
Mr. Li Deheng	李德衡先生	168
Mr. Li Guangyu	李廣玉先生	242

Save for the above, the annual remuneration of the Independent Nonexecutive Directors remain unchanged.

Closure of register of members

The register of members of the Company will be closed from Wednesday, 20 September 2023 to Friday, 22 September 2023 (both dates inclusive), during which period no transfer of shares will be registered. In order to qualify for the interim dividend, all transfers of shares accompanied by the relevant share certificates must be lodged with the Company's branch share registrar in Hong Kong, Tricor Investor Services Limited, at 17/F, Far East Finance Centre, 16 Harcourt Road, Hong Kong not later than 4:30 p.m. on 19 September 2023.

除上述情況外,獨立非執行董事的年度薪酬 維持不變。

暫停辦理股份過戶登記手續

本公司將於二零二三年九月二十日(星期三) 至二零二三年九月二十二日(星期五)(包括首 尾兩日)暫停辦理股份過戶登記手續,期間將 不會辦理股份過戶登記。為符合資格獲派中 期股息,所有股份過戶文件連同有關股票最 遲須於二零二三年九月十九日下午四時三十 分前,交回本公司的香港股份過戶登記分處 卓佳證券登記有限公司,地址為香港夏慤道 16號遠東金融中心17樓。

Corporate governance

The listing of the Shares on the Main Board of the Stock Exchange took place on 8 February 2007 and the Directors are of the opinion that the Company's corporate governance practices are based on the principles and code provisions set out in the CG Code. For the Period, the Company has complied with the CG Code except for the following:

All Directors attended the annual general meeting of the Company held on 27 May 2023, except Mr. Li Guangyu, an Executive Director due to other engagement. All the Directors have given the Board and the committees of which they are members the benefit of their skills, expertise and varied backgrounds and qualifications through regular attendance and active participation. The Directors will also endeavor to attend future general meetings and develop a balanced understanding of the views of Shareholders.

The Audit Committee of the Company has reviewed the Group's unaudited interim condensed consolidated financial statements for the Period.

Model Code for securities transactions by Directors

The Company has adopted the Model Code. Specific enquiries have been made with all Directors who have confirmed that they have complied with the required standard set out in the Model Code and the Company's code of conduct regarding Directors' securities transactions during the Period.

Purchase, redemption or sale of securities of the Company

Neither the Company nor any of its subsidiaries purchased, redeemed or sold any of the Company's listed securities during the Period.

企業管治

股份於二零零七年二月八日在聯交所主板上 市,董事認為本公司的企業管治常規乃以企 業管治守則所載的原則及守則條文為基準。 本公司於期內一直遵守企業管治守則,惟下 列所載者除外:

除執行董事李廣玉先生因其他安排外,全體 董事已出席本公司於二零二三年五月二十七 日舉行的股東週年大會。透過定期出席及積 極參與董事會及彼等所屬的委員會會議,全 體董事的技能、專業知識、不同背景及資歷 均有利於董事會及彼等所屬的委員會。董事 亦將盡力出席日後召開的股東大會,對股東 的意見有均衡的瞭解。

本公司審計委員會已審閱本集團於期內的未 經審核中期簡明合併財務報表。

董事進行證券交易的標準守則 本公司已採納標準守則。經向全體董事作出 具體查詢後,彼等確認,於期內,董事進行 證券交易時已遵守標準守則及本公司行為守 則的規定標準。

購買、贖回或出售本公司的證券

期內,本公司及其任何附屬公司並無購買、 贖回或出售本公司上市證券。

Share option scheme

As at 1 January 2023 and 30 June 2023, the number of share options available for grant under the New Share Option Scheme was 250,473,403 Shares. Under the New Share Option Scheme, the Company granted options to subscribe for an aggregate of 2,200,000 Shares and 2,000,000 Shares on 31 March 2021 and 4 July 2022 respectively to eligible employees. The scheme mandate limit of the New Share Option Scheme allows the Company to issue up to 254,673,403 Shares. Details of the share options granted and outstanding for the Period, are as follows:

購股權計劃

於二零二三年一月一日及二零二三年六月 三十日,新購股權計劃可供授出的購股權數 目為250,473,403股股份。根據新購股權計 劃,本公司於二零二一年三月三十一日及二 零二二年七月四日向合資格僱員授予購股權 以認購合共2,200,000股股份及2,000,000股 股份。新購股權計劃的計劃授權限額准許本 公司發行最多254,673,403股股份。已授出及 於期內未行使的購股權詳情如下:

					Number of share options 購股權數目
Director and eligible employees	Note	At 1 January 2023 於	Granted during the Period	Exercised during the Period	Forfeited during the Period	Lapsed during the Period	At 30 June 2023 於	Date of grant	Exercise price (HKD)	Exercise period	Vesting Period*
董事及合資格僱員	附註	二零二三年 一月一日	於期內 授出	於期內 行使	於期內 沒收	於期內 失效	二零二三年 六月三十日	授出日期	行使價 (港元)	行使期限	歸屬期*
Under the New Share Option Scheme 根據新購股權計劃
Eligible employees	A	2,200,000	–	–	–	–	2,200,000	31/3/2021	2.95	31/3/2023 – 30/3/2027	31/3/2021– 30/3/2026
合資格僱員 Eligible employees	B	2,000,000	–	–	–	–	2,000,000	4/7/2022	4.96	4/7/2022 – 3/7/2027	4/7/2022 – 3/7/2027
合資格僱員
		4,200,000	–	–	–	–	4,200,000

* The vesting schedule of all share options granted under the New Share Option Scheme are the same. The options under each grant vest in tranches over a period of up to 5 years. Each tranche represents up to 25% of the granted share options, and there are 4 tranches in total. The first tranche vests after the 2nd anniversary following the date of the grant. The remaining 3 tranches vest annually on the 3rd, 4th and 5th anniversaries following the date of the grant.

* 根據新購股權計劃授出的所有購股權的歸屬時間表 均相同。每次授出之購股權按最長5年的期限分批 歸屬。每批最多佔已授出購股權的25%,總共有四批。 第一批於授出日期後第二週年之後歸屬。其餘三批 每年於授出日期後第三週年、第四週年及第五週年 歸屬。

The fair values, which were determined by an independent qualified appraiser using the Binomial Option Pricing Model, of the options granted as at the grant dates are noted in the following table. The following assumptions were adopted to calculate the fair values of the options on the grant dates:

於授出日期授出的購股權的公平值由獨立合 資格估值師採用二項式期權定價模式計算, 如下表所示。 計算於授出日期購股權公平值 採納的假設如下 :

Date of grant	授出日期	(A) 31 March 2021 二零二一年 三月三十一日	(B) 4 July 2022 二零二二年 七月四日
Fair value as at the grant date	於授出日期的公平值	RMB1,156,000 人民幣1,156,000元	RMB2,589,000 人民幣2,589,000元
Assumptions:	假設:
Average share price	平均股價	HKD2.80	HKD4.96
		2.80港元	4.96港元
Exercise price	行使價	HKD2.95	HKD4.96
		2.95港元	4.96港元
Expected life of options	購股權預計年期	6.0 years	6.0 years
		6.0年	6.0年
Expected volatility	預計波幅	44.35%	42.06%
Expected dividend yield	預計股息率	6.93%	3.76%
Risk free rate	零風險利率	1.22%	2.85%

Directors' and Chief Executive's Interests in Shares

The interest and short positions of the Directors and chief executive of the Company in the shares, underlying shares and debentures of the Company or any of its associated corporations (within the meaning of the SFO) as at 30 June 2023, as recorded in the register required to be kept under section 352 of the SFO or as otherwise notified to the Company and the Stock Exchange pursuant to the Model Code were as follows:

Long position

董事及最高行政人員的股份權益

於二零二三年六月三十日,董事及本公司最 高行政人員在本公司或其任何相聯法團(定義 見證券及期貨條例)之股份、相關股份及債券 中,擁有須記錄於根據證券及期貨條例第352 條規定存置之登記冊,或根據標準守則已另 行知會本公司及聯交所之權益及淡倉如下:

好倉

Name of Director	Name of company	Capacity	Number and class of securities	Percentage of interests to total issued share capital (approximate) 權益佔 已發行股本 總數百分比
董事姓名	公司名稱	身份	證券數目及類別	(約數)
Li Xuechun (Note 1)	The Company	Interests of controlled corporation	1,000,217,461 Shares	39.44%
李學純(附註1)	本公司	受控制公司權益	1,000,217,461股	39.44%
Li Deheng (Note 2)	The Company	Interests of controlled corporation	35,320,160 Shares	1.39%
李德衡(附註2)	本公司	受控制公司權益	35,320,160股	1.39%

Notes:

• 1. The interest in these Shares is held by Motivator Enterprises Limited, the entire issued share capital of which is wholly and beneficially owned by Mr. Li Xuechun, an executive Director and the chairman of the Company. Accordingly, Mr. Li Xuechun is deemed to be interested in all Shares held by Motivator Enterprises Limited under the SFO.
• 1. The interest in these Shares is held by Empire Spring Investments Limited, the entire issued shares capital of which is wholly and beneficially owned by Mr. Li Deheng, an executive Director and chief executive of the Company. Accordingly, Mr Li Deheng is deemed to be interested in all Shares held by Empire Spring Investments Limited under the SFO.

Save as disclosed above, as at 30 June 2023, none of the Directors or the chief executive of the Company had an interest or short position in any shares, underlying shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) as recorded in the register of interests required to be kept by the Company pursuant to section 352 of the SFO, or as otherwise notified to the Company and the Stock Exchange pursuant to the Model Code.

附註:

• 1. 此等股份權益由Motivator Enterprises Limited持有, 其全部已發行股本由本公司執行董事兼主席李學純 先生全資實益擁有,故此,根據證券及期貨條例, 李學純先生被視為於Motivator Enterprises Limited所 持全部股份中擁有權益。
• 1. 此等股份權益由Empire Spring Investments Limited 持有,其全部已發行股本由執行董事兼本公司最高 行政人員李德衡先生全資實益擁有,故此,根據證 券及期貨條例,李德衡先生被視為於Empire Spring Investments Limited所持全部股份中擁有權益。

除上文披露者外,於二零二三年六月三十日, 概無董事或本公司最高行政人員於本公司或 其任何相聯法團(定義見證券及期貨條例第 XV部)之任何股份、相關股份或債券中,擁有 須記錄於本公司根據證券及期貨條例第352 條存置之權益登記冊之權益或淡倉,或根據 標準守則已另行知會本公司及聯交所之權益 或淡倉。

Interests of Person Holding 5% or More Interests

As at 30 June 2023, the interests and short positions of the persons, other than a Director or chief executive of the Company, in the Shares and underlying Shares as recorded in the register required to be kept under section 336 of the SFO were as follows:

持有5%或以上股權之人士之權益

於二零二三年六月三十日,根據證券及期貨 條例第336條規定存置之登記冊記錄,下列 人士(董事或本公司最高行政人員除外)在股 份及相關股份中擁有權益及淡倉:

Long position

好倉

	Name of Group		Number and class of	Percentage of interests to total issued share capital
Name	member	Capacity	securities	(approximate) 權益佔 已發行股本 總數百分比
名稱╱姓名	本集團成員公司名稱	身份	證券數目及類別	(約數)
Motivator Enterprises Limited (Note 1)	The Company	Beneficial interests	1,000,217,461 Shares	39.44%
Motivator Enterprises Limited(附註1)	本公司	實益權益	1,000,217,461股	39.44%
Shi Guiling (Note 2)	The Company	Interests of spouse	1,000,217,461 Shares	39.44%
侍桂玲(附註2)	本公司	配偶權益	1,000,217,461股	39.44%
Stichting Administratiekantoor Hermes Hercule (Note 3)	The Company	Depositary	159,516,000 Shares	6.29%
Stichting Administratiekantoor Hermes Hercule (附註3)	本公司	存託人	159,516,000股	6.29%
Christiane Louise M. Waucquez (Note 3)	The Company	Beneficiary of a trust (other than a discretionary interest)	159,516,000 Shares	6.29%
Christiane Louise M. Waucquez (附註3)	本公司	信託受益人 (酌情權益除外)	159,516,000股	6.29%
Jacques Marie J. Berghmans (Note 3)	The Company	Founder of a discretionary trust who can influence how the trustee exercises his discretion	159,516,000 Shares	6.29%
Jacques Marie J. Berghmans (附註3)	本公司	全權信託的成立人, 可以影響受託人行使 其酌情權的方式	159,516,000股	6.29%

Notes:

• 1. The interest in these Shares is held by Motivator Enterprises Limited, the entire issued share capital of which is wholly and beneficially owned by Mr. Li Xuechun, an executive Director and the chairman of the Company. Accordingly, Mr. Li Xuechun is deemed to be interested in all Shares held by Motivator Enterprises Limited under the SFO.
• 1. Ms. Shi Guiling is the spouse of Mr. Li Xuechun. Accordingly, she is also deemed to be interested in the 1,000,217,461 Shares held by Motivator Enterprises Limited, which in turn is also deemed to be interested by Mr. Li Xuechun under the SFO.
• 1. The interest in these Shares is held by Stichting Administratiekantoor Hermes Hercule ("STAK"), which is a trust office foundation established under the laws of the Netherlands. Mr. Jacques Marie J. Berghmans, being the founder and sole board member, controls STAK, whereas Ms. Christiane Louise M. Waucquez is a beneficiary thereof by virtue of her ownership of depositary receipts issued by the STAK.

Save as disclosed above, as at 30 June 2023, according to the register of interests required to be kept by the Company under section 336 of the SFO, there was no person who had any interest or short position in the shares or underlying shares of the Company.

附註:

• 1. 此等股份權益由Motivator Enterprises Limited持有, 其全部已發行股本由本公司執行董事兼主席李學純 先生全資實益擁有,故此,根據證券及期貨條例, 李學純先生被視為於Motivator Enterprises Limited所 持全部股份中擁有權益。
• 1. 侍桂玲女士為李學純先生之配偶,故此,根據證 券及期貨條例,彼亦被視為於Motivator Enterprises Limited所持1,000,217,461股股份中擁有權益;而李 學純先生亦被視為於該等股份中擁有權益。
• 1. 該等股份之權益由 Stichting Administratiekantoor Hermes Hercule(「STAK」)持有,該公司為根據荷 蘭法例成立之信託辦事處基金會。Jacques Marie J. Berghmans先生(即STAK的創始人及唯一董事會成 員)控制STAK,而Christiane Louise M. Waucquez女 士因擁有STAK發行的存託憑證而為其受益人。

除上文披露者外,於二零二三年六月三十日, 根據本公司按照證券及期貨條例第336條規 定存置之權益登記冊,概無人士於本公司股 份或相關股份中擁有任何權益或淡倉。

INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT 中期簡明合併利潤表

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

		Half-year 半年度
		Note 附註	2023 二零二三年 RMB'000 人民幣千元	2022 二零二二年 RMB'000 人民幣千元
Revenue Cost of sales	收入 銷售成本	6	13,580,093 (10,623,333)	12,930,797 (9,350,177)
Gross profit	毛利		2,956,760	3,580,620
Selling and marketing expenses Administrative expenses (Provision for)/reversal of impairment	銷售及市場推廣開支 行政開支 金融資產減值虧損		(884,831) (555,850)	(867,131) (482,067)
losses on financial assets Other operating expenses Other income Other gains – net	(撥備)╱撥回 其他經營開支 其他收入 其他收益-淨額	5.2(ii) 7	(33,637) (22,410) 107,080 164,849	3,347 (24,923) 131,878 380,176
Operating profit	經營溢利	8	1,731,961	2,721,900
Finance income Finance costs	財務收入 財務成本		135,283 (109,714)	22,371 (256,057)
Finance income/(costs) – net Share of net loss of associates accounted for using the equity method	財務收入╱(成本)-淨額 採用權益法列賬的 應佔聯營公司淨虧損	9	25,569 (194)	(233,686) (888)
Profit before income tax	除所得稅前溢利		1,757,336	2,487,326
Income tax expense	所得稅開支	10	(219,432)	(461,320)
Profit for the half-year and attributable to the shareholders	股東應佔半年度溢利		1,537,904	2,026,006
Earnings per share for profit attributable to the shareholders during the period	期內股東應佔溢利每股盈利
(expressed in RMB cents per share) – basic	(以每股人民幣分呈列) -基本	11	60.70	79.96
– diluted	-攤薄	11	60.68	79.96

The above interim condensed consolidated income statement should be read in conjunction with the accompanying notes.

上述中期簡明合併利潤表應與隨附附註一併 閱讀。

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 中期簡明合併綜合收益表

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

		Half-year 半年度
		2023 二零二三年 RMB'000 人民幣千元	2022 二零二二年 RMB'000 人民幣千元
Profit for the half-year	半年度溢利	1,537,904	2,026,006
Other comprehensive loss for the half-year Items that may be reclassified to profit or loss Exchange differences on translation of foreign operations	半年度其他綜合虧損 可能重新分類至損益的項目 海外業務的匯兌折算差額	(2,860)	–
Total comprehensive income for the half-year attributable to the Shareholders	股東應佔半年度綜合收益總額	1,535,044	2,026,006
The above interim condensed consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.	一併閱讀。	上述中期簡明合併綜合收益表應與隨附附註

INTERIM CONDENSED CONSOLIDATED BALANCE SHEET 中期簡明合併資產負債表

As at 30 June 2023 於二零二三年六月三十日

			30 June 2023	31 December 2022
			二零二三年	二零二二年
			六月三十日	十二月三十一日
		Note	RMB'000	RMB'000
		附註	人民幣千元	人民幣千元
ASSETS	資產
Non-current assets	非流動資產
Property, plant and equipment	物業、廠房及設備	12	9,777,369	9,455,464
Right-of-use assets	使用權資產	13	902,843	832,747
Intangible assets	無形資產	12	45,371	45,446
Investments accounted for using the	採用權益法列賬的投資
equity method		14	–	194
Financial assets at fair value through	按公平值計入損益的金融資產
profit or loss		5.4	10,000	10,000
Prepayments	預付款項 遞延所得稅資產	15	365,781	150,398
Deferred income tax assets			35,673	41,926
Total non-current assets	非流動資產總值		11,137,037	10,536,175
Current assets	流動資產
Inventories	存貨		5,824,712	5,846,373
Trade, other receivables and	應收貿易賬款、其他應收款項
prepayments	及預付款項	15	2,493,191	2,366,589
Cash and cash equivalents	現金及現金等價物	16	6,899,650	7,008,116
Restricted bank balances	受限制銀行結餘	16	533,500	631,371
Total current assets	流動資產總值		15,751,053	15,852,449
Total assets	資產總值		26,888,090	26,388,624
LIABILITIES	負債
Non-current liabilities	非流動負債
Other payables	其他應付款項	19	58,450	73,618
Deferred income	遞延收益		770,081	756,723
Borrowings	借貸	18	948,000	584,500
Lease liabilities	租賃負債	13	117	514
Deferred income tax liabilities	遞延所得稅負債		16,650	91,650
Total non-current liabilities	非流動負債總額		1,793,298	1,507,005

INTERIM CONDENSED CONSOLIDATED BALANCE SHEET (Continued) 中期簡明合併資產負債表(續)

As at 30 June 2023 於二零二三年六月三十日

		Note	30 June 2023 二零二三年 六月三十日 RMB'000	31 December 2022 二零二二年 十二月三十一日 RMB'000
		附註	人民幣千元	人民幣千元
Current liabilities	流動負債
Trade, other payables and accruals	應付貿易賬款、其他應付款項
	及應計費用	19	2,850,689	2,967,232
Contract liabilities	合約負債		758,471	786,389
Current income tax liabilities	即期所得稅負債		225,000	264,909
Borrowings	借貸	18	4,965,368	5,368,575
Lease liabilities	租賃負債	13	865	890
Total current liabilities	流動負債總額		8,800,393	9,387,995
Total liabilities	負債總額		10,593,691	10,895,000
EQUITY	權益
Capital and reserves attributable to	股東應佔股本及儲備
the shareholders
Share capital	股本	17	243,460	243,460
Share premium	股份溢價	17	266,285	266,285
Other reserves	其他儲備		1,217,529	1,214,114
Retained earnings	保留收益		14,567,125	13,769,765
Total equity	權益總值		16,294,399	15,493,624
Total equity and liabilities	權益及負債總額		26,888,090	26,388,624

The above interim condensed consolidated balance sheet should be read in conjunction with the accompanying notes.

上述中期簡明合併資產負債表應與隨附附註 一併閱讀。

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 中期簡明合併權益變動表

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

				Attributable to the shareholders
		Share capital 股本 RMB'000 人民幣千元	Share premium 股份溢價 RMB'000 人民幣千元	股東應佔 Other reserves 其他儲備 RMB'000 人民幣千元	Retained earnings 保留收益 RMB'000 人民幣千元	Total 總計 RMB'000 人民幣千元
Balance at 1 January 2022 Total comprehensive income for the half-year	於二零二二年一月一日結餘 半年度綜合收益總額	243,261 –	259,434 –	852,483 –	11,322,576 2,026,006	12,677,754 2,026,006
Transactions with shareholders, recognised directly in equity Employees share option scheme:	與股東的交易,直接於權益 內確認 僱員購股權計劃:
– Value of employee services Provision for safety production fee Utilisation of safety production fee Dividends	-僱員服務價值 安全生產費用撥備 使用安全生產費用 股息	– – – –	– – – –	187 5,495 (1,247) –	– (5,495) 1,247 (240,765)	187 – – (240,765)
Total transactions with shareholders	與股東的交易總額	–	–	4,435	(245,013)	(240,578)
Balance at 30 June 2022	於二零二二年六月三十日結餘	243,261	259,434	856,918	13,103,569	14,463,182
Balance at 1 January 2023	於二零二三年一月一日結餘	243,460	266,285	1,214,114	13,769,765	15,493,624
Comprehensive Income Profit for the year Other comprehensive loss	綜合收益 年內溢利 其他綜合虧損	– –	– –	– (2,860)	1,537,904 –	1,537,904 (2,860)
Total comprehensive income for the half-year	半年度綜合收益總額	–	–	(2,860)	1,537,904	1,535,044
Transactions with shareholders, recognised directly in equity Employees share option scheme:	與股東的交易,直接於權益 內確認 僱員購股權計劃:
– Value of employee services Provision for safety production fee Utilisation of safety production fee	-僱員服務價值 安全生產費用撥備 使用安全生產費用	– – –	– – –	538 14,105 (8,368)	– (14,105) 8,368	538 – –
Dividends	股息	–	–	–	(734,807)	(734,807)
Total transactions with shareholders	與股東的交易總額	–	–	6,275	(740,544)	(734,269)
Balance at 30 June 2023	於二零二三年六月三十日結餘	243,460	266,285	1,217,529	14,567,125	16,294,399

The above interim condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

上述中期簡明合併權益變動表應與隨附附註 一併閱讀。

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 中期簡明合併現金流量表

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

		Half-year
			半年度
			2023	2022
			二零二三年	二零二二年
		Note	RMB'000	RMB'000
		附註	人民幣千元	人民幣千元
Cash flows from operating activities	經營活動所得現金流量
Cash generated from operations	經營業務所得現金		1,740,917	1,518,681
Interest paid	已付利息		(94,333)	(78,194)
Income taxes paid	已繳納所得稅		(314,628)	(290,769)
Net cash inflow from operating	經營活動的現金流入淨額
activities			1,331,956	1,149,718
Cash flows from investing activities	投資活動所得現金流量
Purchases of property, plant and	購買物業、廠房及設備
equipment			(822,212)	(347,895)
Purchase of land-use rights	購買土地使用權		(81,129)	(13,092)
Payments for financial assets at fair value	按公平值計入損益計量的金
through profit or loss	融資產付款 購買無形資產		–	(5,000)
Purchases of intangible assets Proceeds from disposal of property,	出售物業、廠房及設備所得		(3,606)	(342)
plant and equipment	款項		9,683	1,318
Payments for disposal of derivative	出售衍生金融工具付款
financial instruments			–	(14,051)
Loan granted to an associate of the	授予本集團一間聯營公司的
Group	貸款	22	(20,850)	(12,000)
Repayment of loan by an associate of	本集團一間聯營公司償還的
the Group	貸款	22	9,800	–
Assets-related government grants	已收資產相關政府補助
received			47,870	36,380
Interest received	已收利息		140,128	12,173
Proceeds from term deposits	定期存款所得款項		300,000	9,389
Placement of term deposits	存置定期存款		(201,000)	(324,000)
Net cash outflow from investing	投資活動所得現金流出淨額
activities			(621,316)	(657,120)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Continued) 中期簡明合併現金流量表(續)

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

			Half-year 半年度
		Note 附註	2023 二零二三年 RMB'000 人民幣千元	2022 二零二二年 RMB'000 人民幣千元
Cash flows from financing activities	融資活動所得現金流量
Proceeds from bank borrowings	銀行借貸所得款項	18	4,769,368	4,646,648
Repayments of bank borrowings Principal elements of lease payments Dividends paid to the Company's	償還銀行借貸 租賃付款的本金部分 向本公司股東派付股息	18	(4,809,075) (456)	(1,368,819) (425)
shareholders		20	(748,943)	(256,035)
Increase in restricted bank balances pledged as security for current bank	作為流動銀行借貸的抵押的 受限制銀行結餘增加
borrowings		16	(30,000)	(62,000)
Net cash (outflow)/inflow from financing activities	融資活動的現金(流出)╱ 流入淨額		(819,106)	2,959,369
Net (decrease)/increase in cash and cash equivalents	現金及現金等值物(減少)╱ 增加淨額		(108,466)	3,451,967
Cash and cash equivalents at beginning of the half-year	於半年度初的現金及現金等 值物		7,008,116	3,542,457
Cash and cash equivalents at end of	於半年度末的現金及現金等
the half-year	值物		6,899,650	6,994,424

The above interim condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes.

上述中期簡明合併現金流量表應與隨附附註 一併閱讀。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

1. GENERAL INFORMATION

Fufeng Group Limited and its subsidiaries manufacture and sell fermentation-based food additive, biochemical products and starch-based products. The Group has manufacturing plants in Shandong Province, Shaanxi Province, Jiangsu Province, Heilongjiang Province, Inner Mongolia Autonomous Region and Xinjiang Uygur Autonomous Region of the PRC and sells mainly to customers located in the PRC.

The Company is a limited liability company incorporated in the Cayman Islands. The address of its registered office is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands.

The Company has its shares listed on the Stock Exchange.

This condensed consolidated interim financial report is presented in RMB, unless otherwise stated, and was approved for issue on 30 August 2023 by the Board.

This condensed consolidated interim financial report has not been audited.

2. BASIS OF PREPARATION

This condensed consolidated interim financial report for the Period has been prepared in accordance with HKAS 34 "Interim Financial Reporting". The condensed consolidated interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 31 December 2022, which have been prepared in accordance with HKFRSs.

1. 一般資料

阜豐集團有限公司及其附屬公司從事製 造及銷售發酵食品添加劑、生化產品及 澱粉產品。本集團於中國山東省、陝西省、 江蘇省、黑龍江省、內蒙古自治區及新 疆維吾爾自治區設有生產廠房,主要向 中國客戶進行銷售。

本公司為於開曼群島註冊成立的有限公 司,其註冊辦事處地址為Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111, Cayman Islands。

本公司股份在聯交所上市。

除另有註明外,本簡明合併中期財務報 告以人民幣列示,及已於二零二三年八 月三十日獲董事會批准刊發。

本簡明合併中期財務報告尚未經審核。

2. 編製基準

於期內的簡明合併中期財務報告乃根據 香港會計準則第34號「中期財務報告」編 製。簡明合併中期財務報告不包括年度 財務報告一般所包括類別之所有附註。 因此,本報告應與按照香港財務報告準 則所編製截至二零二二年十二月三十一 日止年度的全年報告一併閱讀。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies in this condensed interim financial report applied are consistent with those of the annual financial statements for the year ended 31 December 2022 except for the adoption of new and amended standards as set out below.

(a) New and amended standards adopted by the Group

A number of new or amended standards became applicable for the current reporting period. The Group did not have to change its accounting policies and make retrospective adjustments as a result of adopting these standards except amendments to HKAS 12.

		Effective for annual periods beginning on or after
HKFRS 17	Insurance Contracts	1 January 2023
Amendments to HKAS 1 and HKFRS Practice Statement 2	Disclosure of Accounting Policies	1 January 2023
Amendments to HKAS 8	Definition of Accounting Estimates	1 January 2023
Amendments to HKAS 12	Deferred Tax related to Assets and Liabilities arising from a Single Transaction	1 January 2023

The amendments to HKAS 12 Income Taxes require companies to recognise deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. They will typically apply to transactions such as leases of lessees and decommissioning obligations, and will require the recognition of additional deferred tax assets and liabilities.

3. 重要會計政策

本簡明中期財務報告應用的會計政策與 截至二零二二年十二月三十一日止年度 的全年財務報表所應用者貫徹一致,惟 下文所載新訂及經修訂準則之採納除外。

(a) 本集團所採納的新訂及經修訂 準則

若干新訂或經修訂準則適用於本報 告期間。本集團毋須因採納該等準 則而變更其會計政策或作出追溯調 整,惟香港會計準則第12號修訂本 除外。

		於以下日期 或之後起的 年度期間 生效
香港財務報告準則	保險合同	二零二三年
第17號 香港會計準則第1	會計政策之披露	一月一日 二零二三年
號及香港財務 報告準則應用		一月一日
指引第2號之
修訂本 香港會計準則第8 號之修訂本	會計估計的定義	二零二三年 一月一日
香港會計準則第 12號之修訂本	單一交易中產生的 資產及負債相關的 遞延稅項	二零二三年 一月一日

香港會計準則第12號之修訂本所得 稅要求公司對以下交易確認遞延稅 項,即在初始確認時,產生等值的 應納稅和可抵扣的暫時性差異。其 通常適用於承租人的租賃及停用責 任等交易,並將要求確認額外延遲 稅項資產及負債。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

3. SIGNIFICANT ACCOUNTING POLICIES

(Continued)

(a) New and amended standards adopted by the Group (Continued)

The amendments should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, entities should recognise deferred tax assets (to the extent that it is probable that they can be utilised) and deferred tax liabilities at the beginning of the earliest comparative period for all deductible and taxable temporary differences associated with:

• i. right-of-use assets and lease liabilities, and
• ii. decommissioning, restoration and similar liabilities, and the corresponding amounts recognised as part of the cost of the related assets.

The cumulative effect of recognising these adjustments as of 31 December 2022 was not material and hence no adjustment was made to the beginning retained earnings, or another component of equity.

3. 重要會計政策(續)

(a) 本集團所採納的新訂及經修訂 準則(續)

此修訂本適用於所呈列最早可比較 期間開始時或之後已發生的交易。 此外,實體須在最早可比較期間開 始時對所有與以下交易相關的可扣 減及應課稅暫時性差額確認遞延稅 項資產(在可能可使用的範圍內)及 遞延稅項負債:

• i. 使用權資產及租賃負債,及
• ii. 停用、恢復及相似負債以及確 認為相關資產的成本一部分的 相應金額。

截至二零二二年十二月三十一日確 認該等調整的累計影響並不重大, 因此並無對期初保留盈利或權益的 其他部分作出調整。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

3. SIGNIFICANT ACCOUNTING POLICIES

(Continued)

(b) New standards and interpretations not yet adopted

The following new standards, new interpretations and amendments to standards and interpretations have been issued but are not effective for the financial year beginning on 1 January 2023 and have not been early adopted by the Group:

		Effective for annual periods beginning on or after
Amendments to HKAS 1	Classification of Liabilities as current or non-current	1 January 2024
Amendments to HKAS 1	Non-current liabilities with covenants	1 January 2024
	Amendments to HKFRS 16 Lease liability in sale and leaseback	1 January 2024
HK Interpretation 5 (Revised)	Presentation of Financial Statements – Classification by the Borrower of a Term Loan that Contains a Repayment on Demand Clause	1 January 2024
Amendments to HKFRS 10 and HKAS 28	Sale or contribution of assets between an investor and its associate or joint venture	To be determined

The Group is assessing the full impact of the new standards, new interpretations and amendments to standards and interpretations.

3. 重要會計政策(續)

(b) 尚未採納之新訂準則及詮釋

以下是已頒佈但於二零二三年一月 一日起的財政年度尚未生效及本集 團尚未提前採納的新訂準則、新詮 釋以及對準則及詮釋之修訂本:

		於以下日期 或之後起的 年度期間 生效
香港會計準則第	將負債分類為流動或	二零二四年
1號之修訂本	非流動	一月一日
香港會計準則第	有契約之非流動負債	二零二四年
1號之修訂本		一月一日
香港財務報告準則	售後租回之租賃負債	二零二四年
第16號之修		一月一日
訂本
香港詮釋第5號	財務報表呈列-借款	二零二四年
(經修訂)	人對含有按要求償	一月一日
	還條款的定期貸款
	的分類
香港財務報告準則	投資者與其聯營公司	有待釐定
第10號及香港	或合營企業之間之
會計準則第28	資產出售或投入
號之修訂本

本集團現正在評估新準則、新詮釋 以及對準則及詮釋之修訂本的全面 影響。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

4. ESTIMATES

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

In preparing this condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 December 2022.

5. FINANCIAL RISK MANAGEMENT

5.1 Financial risk factors

The Group's activities expose it to a variety of financial risks: market risk (including foreign exchange risk, cash flow interest rate risk and fair value interest rate risk), credit risk and liquidity risk.

The interim condensed consolidated financial statements does not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements as at 31 December 2022.

There have been no material changes in the risk management department or in any risk management policies since 2022 year end.

5.2 Credit risk

Credit risk arises from cash and cash equivalents, contractual cash flows of debt investments carried at amortised cost, at FVOCI and FVPL favourable derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to the customers, including outstanding receivables.

(i) Risk management

Credit risk is managed on a Group basis. Bank deposits and cash at bank are deposited in reputable financial institutions which are considered with low credit risk.

4. 估計

於編製中期財務報表時,管理層須作出 會影響會計政策應用以及資產及負債與 收支呈報金額的判斷、估計及假設。實 際結果可能有別於該等估計。

於編製本簡明合併中期財務報表時,管 理層於應用本集團會計政策時作出的重 大判斷及估計不明朗因素的主要來源與 截至二零二二年十二月三十一日止年度 的合併財務報表所應用者相同。

5. 財務風險管理

• 5.1 財務風險因素
• 本集團的業務承受多種財務風險: 市場風險(包括外匯風險、現金流 量利率風險及公平值利率風險)、 信貸風險及流動資金風險。

中期簡明合併財務報表並不包括全 年財務報表須提供的所有財務風險 管理資料及披露,並應與本集團於 二零二二年十二月三十一日的全年 財務報表一併閱讀。

自二零二二年年底起,風險管理部 門或任何風險管理政策並無任何重 大變動。

5.2 信貸風險

信貸風險來自現金及現金等值物、 按攤餘成本、按公平值計入其他綜 合收益及按公平值計入損益列賬的 債務投資之合約現金流量、有利的 衍生金融工具、銀行及金融機構存 款,以及客戶的信貸風險(包括未 收回應收款項)。

(i) 風險管理

信貸風險以本集團為基礎進行 管理。銀行存款及銀行現金存 入被視為具低信貸風險之信譽 良好的金融機構。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

5. FINANCIAL RISK MANAGEMENT (Continued)

5.2 Credit risk (Continued)

(i) Risk management (Continued)

For sales of goods, credit is normally granted to customers with long-term relationship and good credit history. The Group performs ongoing credit evaluations of its customers' financial conditions and generally does not require collateral on trade receivables. The credit period granted to the customers is usually no more than 90 days and the credit quality of these customers is assessed, which takes into account their financial position, past experience and other factors. In view of the sound collection history of receivables due from them, management believes that the credit risk inherent in the Group's outstanding trade receivables arising from sales of products due from them is not significant.

The Group's investment in debt instruments are considered to be low risk investments. The credit ratings of the investments are monitored for credit deterioration.

(ii) Impairment of financial assets

The group has two types of financial assets that are subject to the expected credit loss model:

• trade receivables for sales of inventory, and
• other financial assets carried at amortised cost

While deposit with banks, including term deposits and restricted bank deposits and notes receivables are also subject to the impairment requirements of HKFRS 9, identified impairment loss was immaterial.

Trade receivables

The Group applies the HKFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables.

5. 財務風險管理(續)

5.2 信貸風險(續)

(i) 風險管理(續)

就商品銷售而言,信貸一般授 予擁有長期關係及信貸記錄良 好的客戶。本集團持續對客戶 的財務狀況進行信貸評估,且 一般情況下毋須應收貿易賬款 的抵押品。授予客戶的信用期 一般不超過90天,並會考慮客 戶財務狀況、過往經驗等因素 評估該等客戶的信貸質素。鑒 於應收客戶款項的收款紀錄良 好,管理層認為本集團因產品 銷售應收彼等的未償還應收貿 易賬款的信貸風險並不大。

本集團於債務工具投資視作低 風險投資。投資的信貸評級受 監控以防信貸惡化。

(ii) 金融資產減值

本集團有兩類受限於預期信用 損失模式之金融資產:

• 有關存貨銷售之應收貿易 賬款;及
• 按攤餘成本列賬之其他金 融資產

儘管銀行存款(包括定期存款 及受限制銀行存款)及應收票 據亦須遵守香港財務報告準則 第9號的減值要求,但已確認 的減值損失並不重大。

應收貿易賬款

本集團採用香港財務報告準則 第9號的簡化方法計量預期信 用損失,即對所有應收貿易賬 款確認整個存續期的預期虧損 撥備。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

5. FINANCIAL RISK MANAGEMENT (Continued)

5.2 Credit risk (Continued)

(ii) Impairment of financial assets (Continued)

Trade receivables (Continued)

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due.

The expected loss rates are based on the payment profiles of sales over a period of 36 month before 30 June 2023 or 31 December 2022 respectively and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables. The Group has considered the business, financial or economic conditions of the customers and the performance and behaviour of customers, and accordingly adjusts the historical loss rates based on expected changes in these factors.

On that basis, the loss allowance for trade receivables as at 30 June 2023 and 31 December 2022 was determined as follows:

5. 財務風險管理(續)

5.2 信貸風險(續)

(ii) 金融資產減值(續)

應收貿易賬款(續)

為了計量預期信用損失,應收 貿易賬款已按相同的信貸風險 特徵及逾期天數進行分組。

預期損失率分別基於二零二三 年六月三十日或二零二二年 十二月三十一日前36個月期間 銷售的付款情況及期內出現的 相應歷史信用損失確定。歷史 信用損失率已作出調整以反映 影響客戶結算應收款項能力的 當前和前瞻性宏觀經濟因素資 料。本集團已對客戶的業務、 財務或經濟狀況以及彼等之表 現及行動作出考慮,並根據該 等因素的預期變動相應地調整 歷史信用損失率。

按此基準,於二零二三年六月 三十日及二零二二年十二月 三十一日的應收貿易賬款的虧 損撥備釐定如下:

		Within 3 months	3 to 12 months	Over 12 months	Total
30 June 2023 二零二三年六月三十日		3個月內 RMB'000 人民幣千元	3至12個月 RMB'000 人民幣千元	12個月以上 RMB'000 人民幣千元	總計 RMB'000 人民幣千元
Expected loss rate Gross carrying amount	預期損失率 總賬面值	4.09% 990,279	29.14% 72,044	99.12% 5,477	1,067,800
Loss allowance provision	虧損撥備	40,510	20,995	5,429	66,934
31 December 2022 二零二二年十二月三十一日		Within 3 months 3個月內 RMB'000 人民幣千元	3 to 12 months 3至12個月 RMB'000 人民幣千元	Over 12 months 12個月以上 RMB'000 人民幣千元	Total 總計 RMB'000 人民幣千元
Expected loss rate Gross carrying amount	預期損失率 總賬面值	2.32% 1,076,025	26.48% 13,920	98.98% 4,689	1,094,634

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

5. FINANCIAL RISK MANAGEMENT (Continued)

5.2 Credit risk (Continued)

(ii) Impairment of financial assets (Continued)

Trade receivables (Continued)

The closing loss allowances for trade receivables as at 30 June 2023 and 31 December 2022 reconcile to the opening loss allowances as follows:

5. 財務風險管理(續)

5.2 信貸風險(續)

(ii) 金融資產減值(續) 應收貿易賬款(續) 於二零二三年六月三十日及二 零二二年十二月三十一日之應 收貿易賬款之期末虧損撥備與

期初虧損撥備的對賬如下:

		Trade receivables 應收貿易賬款 RMB'000 人民幣千元
Opening loss allowance at	於二零二二年一月一日之
1 January 2022	期初虧損撥備	44,546
Provision for impairment loss allowances	計提減值虧損撥備	(11,158)
Receivables written off during the year as	年內撇銷為不可收回款項之
uncollectible	應收款項	(91)
Closing loss allowance at	於二零二二年十二月三十一日之
31 December 2022	期末虧損撥備	33,297
Provision for impairment loss allowances	計提減值虧損撥備	33,637
Closing loss allowance at	於二零二三年六月三十日之
30 June 2023	期末虧損撥備	66,934

Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the Group, and a failure to make contractual payments for a period greater than 360 days past due.

Impairment losses on trade receivables are presented within operating profit. Subsequent recoveries of amounts previously written off are credited against the same line item.

應收貿易賬款於並無合理可收 回預期時被撇銷。概無合理可 收回預期的跡象包括(其中包 括)債務人未能與本集團訂立 還款計劃,以及於逾期後超過 360天的期間未能作出合約付 款。

應收貿易賬款的減值損失於經 營溢利內呈列。先前已撇銷款 項的後續收回記入同一明細項 目。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

5. FINANCIAL RISK MANAGEMENT (Continued)

5.2 Credit risk (Continued)

(ii) Impairment of financial assets (Continued)

Other financial assets at amortised cost

Other financial assets at amortised cost include other receivables including loan to a third party. Impairment on other receivables is measured as either 12-month expected credit losses or lifetime expected credit losses, depending on whether there has been a significant increase in credit risk since initial recognition. If a significant increase in credit risk of a receivable has occurred since initial recognition, then impairment is measured as lifetime expected credit losses.

The closing loss allowances for other financial assets at amortised cost as at 30 June 2023 and 31 December 2022 reconcile to the opening loss allowances as follows:

1. 財務風險管理(續)

5.2 信貸風險(續)

(ii) 金融資產減值(續)

按攤餘成本計量的其他金融 資產

按攤餘成本計量的其他金融資 產包括其他應收款項(包括貸 款予第三方)。其他應收款項 減值按12個月預期信用損失或 整個存續期的預期信用損失計 量,視乎自初步確認起是否出 現重大信貸風險增加。倘應收 款項的信貸風險自初次確定以 後已顯著增加,減值以整個存 續期預期信用損失計量。

按攤餘成本計量的其他金融資 產於二零二三年六月三十日及 二零二二年十二月三十一日之 期末虧損撥備與期初虧損撥備 的對賬如下:

		Other receivables 其他應收款項 RMB'000 人民幣千元
Opening loss allowance at 1 January 2022 Provision for impairment loss allowances	於二零二二年一月一日之 期初虧損撥備 計提減值虧損撥備	50,000 –
Closing loss allowance at 31 December 2022 Provision for impairment loss allowances	於二零二二年十二月三十一日之 期末虧損撥備 計提減值虧損撥備	50,000 –
Closing loss allowance at 30 June 2023	於二零二三年六月三十日之 期末虧損撥備	50,000

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

5. FINANCIAL RISK MANAGEMENT (Continued)

5.2 Credit risk (Continued)

(ii) Impairment of financial assets (Continued)

(Provision for)/reversal of impairment losses on financial assets recognised in profit and loss

During the Period and the Corresponding Period, the following (losses)/gains were recognised in "(Provision for)/reversal of impairment losses on financial assets" in the interim condensed consolidated income statement in relation to impaired financial assets:

5. 財務風險管理(續)

5.2 信貸風險(續)

(ii) 金融資產減值(續)

已確認於損益的金融資產減值 虧損(撥備)╱撥回 於期內及去年同期,以下(虧 損)╱收益乃就已減值金融資 產於中期簡明合併利潤表「金 融資產減值虧損(撥備)╱撥回」 內確認:

Half-year

半年度
2023	2022
二零二三年	二零二二年
RMB'000	RMB'000
人民幣千元	人民幣千元

(Provision for)/reversal of impairment losses 減值虧損(撥備)╱撥回

Prudent liquidity risk management includes maintaining sufficient cash and available credit facilities to meet

Management monitors the funding requirements of the Group and the availability of credit facilities in order to

The table below analyses the Group's financial liabilities into relevant maturity groupings based on their contractual

(b) net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flow.

– loss allowance for trade receivables

-應收貿易賬款虧損撥備

obligations when they arise.

ensure the liquidity of the Group.

(a) non-derivative financial liabilities, and

5.3 Liquidity risk

maturities for:

5.3 流動資金風險 審慎流動資金風險管理包括維持充 足現金及可用信貸融資以在責任產 生時履行責任。

(33,637) 3,347

管理層監控本集團的資金需要及可 用信貸融資以確保本集團資金流動 性。

下表根據合約到期日按相關到期組 別分析本集團的金融負債:

• (a) 非衍生金融負債;及
• (b) 以淨額和總額結算的衍生金融 工具,對於此類金融工具而言, 合同期限對於瞭解現金流量時 間很重要。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

5. FINANCIAL RISK MANAGEMENT (Continued)

5. 財務風險管理(續)

5.3 Liquidity risk (Continued)

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances, as the impact of discounting is not significant.

5.3 流動資金風險(續)

表中披露的金額為合約未貼現現金 流量。由於有關貼現影響並不重大, 故於12個月內到期的結餘相當於其 賬面結餘。

				Total
	Less than	Between	Between	contractual
				cash flows
				合約現金
				流量總計
	人民幣千元	人民幣千元	人民幣千元	RMB'000 人民幣千元
借貸	4,965,368	948,000	–	5,913,368
應付借貸利息(i)	85,690	14,555	–	100,245
租賃負債	939	66	61	1,066
應付貿易賬款及其他應付
款項(不包括非金融負債)	2,407,587	33,420	31,710	2,472,717
				8,487,396
				Total
	Less than	Between	Between	contractual
	1 year	1 and 2 years	2 and 5 years	cash flows
				合約現金
金融負債合約到期日	少於1年	1年至2年	2年至5年	流量總計
	RMB'000	RMB'000	RMB'000	RMB'000
	人民幣千元	人民幣千元	人民幣千元	人民幣千元
於二零二二年
				5,953,075
就借貸支付利息(i)	89,427	13,146	–	102,573
租賃負債	936	488	75	1,499
應付貿易賬款及其他應付
款項(不包括非金融負債)	2,539,781	17,100	65,130	2,622,011
	金融負債合約到期日 於二零二三年六月三十日 總計 十二月三十一日 借貸	1 year 少於1年 RMB'000 7,459,584 5,368,575	1 and 2 years 1年至2年 RMB'000 996,041 584,500	2 and 5 years 2年至5年 RMB'000 31,771 –

held as at 30 June 2023 and 31 December 2022 without taking into account of future issues. Floating-rate interests are estimated using current interest rate as at 30 June 2023 and 31 December 2022 respectively.

及二零二二年十二月三十一日所持銀行 借貸計算,而不計及日後事項。浮動利 息分別按二零二三年六月三十日及二零 二二年十二月三十一日的現行利率估計。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

5. FINANCIAL RISK MANAGEMENT (Continued)

5.4 Fair value estimation

(a) Financial assets and liabilities

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at fair value in the condensed consolidated financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Group has classified its financial instruments into the three levels prescribed under the accounting standards. An explanation of each level follows underneath the table.

5. 財務風險管理(續)

5.4 公平值估算

(a) 金融資產及負債

(i) 公平值層級

本節闡釋於釐定簡明合併 財務報表中按公平值確認 及計量的金融工具的公平 值時所作的判斷及估計。 為說明用於釐定公平值所 用輸入數據的可靠性,本 集團已將其金融工具分類 為會計準則下規定的三個 級別。各級別的闡釋如下 表所示。

Recurring fair value measurements	經常性公平值計量	Note	Level 1 第一級 RMB'000	Level 2 第二級 RMB'000	Level 3 第三級 RMB'000	Total 總計 RMB'000
		附註	人民幣千元	人民幣千元	人民幣千元	人民幣千元
At 30 June 2023	於二零二三年
	六月三十日
Financial assets	金融資產
Financial assets measured at FVPL	按公平值計入損益計量 的金融資產
– Equity investment	-權益投資		–	–	10,000	10,000
Notes receivable measured at FVOCI	按公平值計入其他綜合
	收益計量的應收票據	15(c)	–	–	850,121	850,121
Total financial assets	金融資產總額		–	–	860,121	860,121
Recurring fair value			Level 1	Level 2	Level 3	Total
measurements	經常性公平值計量		第一級	第二級	第三級	總計
		Note	RMB'000	RMB'000	RMB'000	RMB'000
		附註	人民幣千元	人民幣千元	人民幣千元	人民幣千元
At 31 December 2022	於二零二二年
	十二月三十一日
Financial assets	金融資產
Financial assets measured at FVPL	按公平值計入損益計量
	的金融資產
– Equity investment	-權益投資		–	–	10,000	10,000
Notes receivable measured at FVOCI	按公平值計入其他綜合
	收益計量的應收票據	15(c)	–	–	654,942	654,942
Total financial assets	金融資產總額		–	–	664,942	664,942

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

5. FINANCIAL RISK MANAGEMENT (Continued)

5.4 Fair value estimation (Continued)

• (a) Financial assets and liabilities (Continued)
• (i) Fair value hierarchy (Continued)

The carrying value less impairment provision of trade and other receivables, cash and cash equivalents and short-term bank deposits approximated their fair values. The fair value of financial assets and liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments.

The Group's policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives, and equity securities) is based on quoted market prices at the end of the reporting period. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities.

5. 財務風險管理(續)

5.4 公平值估算(續)

• (a) 金融資產及負債(續)
• (i) 公平值層級(續)

應收貿易賬款及其他應收 款項、現金及現金等值物 及短期銀行存款的賬面值 減減值撥備與其公平值相 若。作披露用途的金融資 產及負債公平值乃透過按 現行市場利率(適用於本 集團相若金融工具)貼現 未來合約現金流的方式進 行估計。

本集團政策旨在確認於報 告期末公平值等級水平的 轉入及轉出情況。

第一級:在活躍市場上買 賣的金融工具(如公開買 賣衍生工具及股本證券) 的公平值乃按於報告期末 的市場報價釐定。本集團 所持有金融資產採用的市 場報價為當時買盤價。該 等工具計入第一級。

第二級:未在活躍市場上 買賣的金融工具(例如場 外衍生工具)的公平值採 用估值技術釐定。該等估 值技術盡量採用可觀察市 場數據,並盡可能不倚賴 實體特定估計。倘工具公 平值所需的重大輸入數據 均可觀察,則該工具計入 第二級。

第三級:倘一項或多項重 大輸入數據並非以可觀察 市場數據為基礎,則該工 具計入第三級。對於非上 市股本證券而言便是如此。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

5. FINANCIAL RISK MANAGEMENT (Continued)

5.4 Fair value estimation (Continued)

• (a) Financial assets and liabilities (Continued)
• (ii) Valuation techniques used to determine fair values

Specific valuation techniques used to value financial instruments include:

• for interest rate swaps the present value of the estimated future cash flows based on observable yield curves
• for foreign currency forwards present value of future cash flows based on forward exchange rates at the balance sheet date
• for foreign currency options option pricing models (e.g. Black Scholes model) and
• for other financial instruments discounted cash flow analysis.

All of the resulting fair value estimates are included in level 3.

1. 財務風險管理(續)

5.4 公平值估算(續)

• (a) 金融資產及負債(續)
• (ii) 釐定公平值所用估值方法

評估金融工具所用特定估 值方法包括:

• 就利率掉期而言-基 於可觀察收益曲線的 估計未來現金流量的 現值
• 就外匯遠期合同而 言-於資產負債表日 根據遠期匯率的未來 現金流量現值
• 就外匯期權而言-期 權定價模式(例如布 萊克 • 斯科爾斯模型) 及
• 就其他金融工具而 言-貼現現金流量分 析。

所有所產生的公平值估計 計入第三級。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

6. SEGMENT INFORMATION

The chief operating decision-maker has been identified as the executive directors of the Company. The executive directors review the Group's internal reporting in order to assess performance and allocate resources.

The executive directors examine the business performance of the Group according to the following product segments:

• Food additives segment: manufacturing and sales of food additives products, including MSG, starch sweeteners, glutamic acid, compound seasoning and corn oil;
• Animal nutrition segment: manufacturing and sales of animal nutrition products, including corn refined products, threonine and lysine;
• High-end amino acid segment: manufacturing and sales of high-end amino acid products;
• Colloid segment: manufacturing and sales of colloid products, including xanthan gum and gellan gum;
• Other segment: manufacturing and sales of other products, including fertilisers, synthetic ammonia, pharmaceuticals and others.

The executive directors assess the performance of the business segment based on gross profit of the above five product segments.

Approximately 71% (30 June 2022: 66%) of the Group's revenue are generated from sales to the customers in the PRC.

No customer contributes 10% or more to the Group's revenue for the Period and the Corresponding Period.

6. 分部資料

已確定最高營運決策者為本公司執行董 事。執行董事審閱本集團的內部呈報過 程,以評核表現及分配資源。

執行董事根據以下產品分部評估本集團 的業務表現:

• 食品添加劑分部:製造及銷售食品 添加劑產品,包括味精、澱粉甜味 劑、谷氨酸、複合調味品及玉米油;
• 動物營養分部:製造及銷售動物營 養產品,包括玉米提煉產品、蘇氨 酸及賴氨酸;
• 高檔氨基酸分部:製造及銷售高檔 氨基酸產品;
• 膠體分部:製造及銷售膠體產品, 包括黃原膠及結冷膠;
• 其他分部:製造及銷售其他產品, 包括肥料、合成氨、藥品及其他。

執行董事基於上述五種產品分部毛利評 估業務分部表現。

本集團約71%(二零二二年六月三十日: 66%)的收入來自向中國客戶出售商品。

於期內及去年同期,概無客戶佔本集團 收入的10%或以上。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

6. SEGMENT INFORMATION (Continued)

The segment information for the six months ended 30 June 2023 is as follows:

1. 分部資料(續)

截至二零二三年六月三十日止六個月的 分部資料如下:

Food	Animal	High-end
additives	nutrition	amino acid	Colloid	Others	Group
食品添加劑	動物營養	高檔氨基酸	膠體	其他	本集團
RMB'000	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000
人民幣千元	人民幣千元	人民幣千元	人民幣千元	人民幣千元	人民幣千元
6,558,505	4,090,697	827,369	1,632,283	471,239	13,580,093
(5,586,710)	(3,496,160)	(528,550)	(634,866)	(377,047)	(10,623,333)
971,795	594,537	298,819	997,417	94,192	2,956,760

The segment information for the six months ended 30 June 2022 is as follows:

截至二零二二年六月三十日止六個月的 分部資料如下:

		Food	Animal	High-end
		additives	nutrition	amino acid	Colloid	Others	Group
		食品添加劑	動物營養	高檔氨基酸	膠體	其他	本集團
		RMB'000	RMB'000	RMB'000	RMB'000	RMB'000	RMB'000
		人民幣千元	人民幣千元	人民幣千元	人民幣千元	人民幣千元	人民幣千元
Revenue	收入	6,065,473	4,754,189	534,843	940,228	636,064	12,930,797
Cost of sales	銷售成本	(4,795,317)	(3,356,351)	(321,665)	(464,923)	(411,921)	(9,350,177)
Gross profit	毛利	1,270,156	1,397,838	213,178	475,305	224,143	3,580,620

7. OTHER INCOME

7. 其他收入

		Half-year
		半年度
		2023	2022
		二零二三年	二零二二年
		RMB'000	RMB'000
		人民幣千元	人民幣千元
Amortisation of deferred income	遞延收益攤銷	34,512	46,470
Government grants relating to expenses	與開支有關的政府補助	27,311	31,870
Sales of waste products	廢料產品銷售	26,874	38,199
Others	其他	18,383	15,339
		107,080	131,878

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

8. OPERATING PROFIT

1. 經營溢利

An analysis of the amounts presented as operating items in the financial information is given below.

下文所載為財務資料中呈列為經營項目 的金額分析。

		Half-year
		半年度
		2023	2022
		二零二三年	二零二二年
		RMB'000	RMB'000
		人民幣千元	人民幣千元
Amortisation of intangible assets (Note 12) 無形資產攤銷(附註12)		3,681	3,041
Depreciation of property, plant and	物業、廠房及設備折舊(附註12)
equipment (Note 12)		558,913	568,630
Depreciation of right-of-use	使用權資產折舊(附註13)
assets (Note 13)		11,033	10,783
Provision for/(reversal of) impairment	金融資產減值虧損撥備╱(撥回)
losses on financial assets (Note 5.2(ii))	(附註5.2(ii))	33,637	(3,347)
Provision for value on employee services	購股權計劃的僱員服務價值撥備
for the share option schemes		538	187
Provision for inventory write-down – net	存貨撇減撥備-淨值	30,410	10,356
Impairment charge for an investment	採用權益法列賬的一項投資的減值
accounted for using the equity method	支出(附註14)
(Note 14)		–	7,483
Impairment charge for property,	物業、廠房及設備減值支出
plant and equipment (Note 12)	(附註12)	–	4,603
Net foreign exchange gains	外匯收益淨額	(211,677)	(306,215)
Investment gains from derivative financial	衍生金融工具產生的投資收益
instruments		–	(68,963)
Compensation for project termination	項目終止補償金	44,132	–

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

9. FINANCE INCOME AND COSTS

9. 財務收入及成本

		Half-year 半年度
		2023 二零二三年 RMB'000 人民幣千元	2022 二零二二年 RMB'000 人民幣千元
Finance income: Interest income from financial assets held for cash management purposes	財務收入: 就現金管理目的所持有的金融資產 利息收入
– bank deposits and bank balances – financial assets at amortised cost	-銀行存款及銀行結餘 -按攤餘成本計量的金融資產	135,001 282	22,109 262
		135,283	22,371
Finance costs: Interest and finance charges paid/ payable for lease liabilities and financial liabilities not at fair value	財務成本: 就並非按公平值計入損益計量的租 賃負債及金融負債已付╱應付利息 及融資費用
through profit or loss – bank borrowings – lease liabilities – other payables Net foreign exchange losses on	-銀行借貸 -租賃負債 -其他應付款項 融資活動的外匯虧損淨額	(93,614) (34) (1,931)	(91,379) (43) (1,835)
financing activities		(14,135)	(162,800)
		(109,714)	(256,057)
Net finance income/(costs)	財務收入╱(成本)淨額	25,569	(233,686)

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

10. INCOME TAX EXPENSE

10. 所得稅開支

		Half-year 半年度
		2023 二零二三年 RMB'000 人民幣千元	2022 二零二二年 RMB'000 人民幣千元
Current income tax – PRC – Enterprise income tax – Withholding tax	即期所得稅 -中國 -企業所得稅 -預扣稅	205,691 77,750	332,980 80,000
– U.S. enterprise income tax	-美國企業所得稅	4,738	6,303
Total current income tax Deferred income tax	即期所得稅總額 遞延所得稅	288,179 (68,747)	419,283 42,037
		219,432	461,320

The Company was incorporated in the Cayman Islands as an exempted company with limited liability under the Companies Law (Law 3 of 1961, as consolidated and revised) of the Cayman Islands and is exempted from payment of the Cayman Islands income tax.

The Group's subsidiaries in BVI are exempted from payment of the BVI income tax.

Hong Kong profit tax is calculated based on the effective tax rate on assessable profit of subsidiaries established in Hong Kong in accordance with Hong Kong tax laws and regulations.

PRC enterprise income tax is calculated based on the effective tax rate on assessable profit of subsidiaries established in the PRC in accordance with PRC tax laws and regulations.

本公司根據開曼群島公司法(一九六一年 法例三,經綜合及修訂)在開曼群島註冊 成立為獲豁免有限公司,並獲豁免繳交 開曼群島所得稅。

本集團於英屬處女群島的附屬公司獲豁 免繳交英屬處女群島所得稅。

香港利得稅根據香港稅務法律及法規, 按於香港成立的附屬公司的應課稅溢利, 以實際稅率計算。

中國企業所得稅根據中國稅務法律及法 規,按於中國成立的附屬公司的應課稅 溢利,以實際稅率計算。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

10. INCOME TAX EXPENSE (Continued)

According to the corporate income tax law, starting from 1 January 2008, a 10% withholding tax will be levied on the immediate holding companies established outside the PRC when their PRC subsidiaries declare dividends out of their profits earned after 1 January 2008. A lower withholding tax rate of 5% may be applied if there is a tax treaty arrangement between the PRC and the jurisdiction of the foreign immediate holding companies, including those incorporated in Hong Kong. Trans-Asia Capital Resources Ltd., Full Profit Investment (Group) Ltd. and Full Health (Hong Kong) Limited, three subsidiaries of the Company, acquired qualification for the lower tax rate of 5% for dividend received from its subsidiaries in mainland China while the withholding tax rate for other subsidiaries in Hong Kong were based on 10%.

The U.S. enterprise income tax is calculated based on the assessable profit of the subsidiary established in the U.S. in accordance with the U.S. tax laws and regulations.

Singapore enterprise income tax is calculated based on the assessable profit of the subsidiary established in Singapore in accordance with Singapore tax laws and regulations.

During the Period, withholding tax of RMB75,000,000 has been paid as a subsidiary of the Company has distributed the retained earnings of RMB1,500,000,000 as of 31 December 2022 and withholding tax of RMB2,750,000 has been provided and paid as another subsidiary of the Company distributed the retained earnings of RMB55,000,000 as of 31 December 2022. No withholding tax has been provided as the Group does not expect Mainland China subsidiaries to distribute the retained earnings for the Period (for the Corresponding Period: withholding tax of RMB30,000,000 has been provided as the Group expects Mainland China subsidiaries to distribute the retained earnings of RMB600,000,000) in the foreseeable future.

10. 所得稅開支(續)

根據企業所得稅法,自二零零八年一月 一日起,當中國大陸以外地點成立的直 接控股公司之中國附屬公司於二零零八 年一月一日後自所賺取溢利中宣派股息, 將對該等直接控股公司徵收10%預扣稅。 倘中國與外國直接控股公司(包括於香 港註冊成立的公司)所屬司法權區之間 訂有稅務優惠協議,則可按較低的預扣 稅稅率5%繳稅。環亞資本有限公司、豐 盈投資(集團)有限公司及康滿(香港)有 限公司(本公司的三家附屬公司)自中國 大陸附屬公司收取的股息享有較低的5% 稅率繳稅的資格,而其他香港附屬公司 的預扣稅率為10%。

美國企業所得稅根據美國稅務法律及法 規,按於美國成立的附屬公司的應課稅 溢利計算。

新加坡企業所得稅根據新加坡稅務法律 及法規,按於新加坡成立的附屬公司的 應課稅溢利計算。

於期內,由於本公司一間附屬公司已分 派截至二零二二年十二月三十一日的 保留收益人民幣1,500,000,000元,故 已支付預扣稅人民幣75,000,000元,而 本公司的另一間附屬公司已分派截至二 零二二年十二月三十一日的留存收益人 民幣55,000,000元,故已計提及支付預 扣稅人民幣2,750,000元。於期內,由 於本集團預期中國大陸附屬公司於可見 未來不會分派保留收益,故並無計提預 扣稅撥備(去年同期:由於本集團預期 中國大陸附屬公司分派保留收益人民幣 600,000,000元,故計提預扣稅撥備人民 幣30,000,000元)。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

11. EARNINGS PER SHARE

11. 每股盈利

		Half-year 半年度
		2023 二零二三年	2022 二零二二年
Earnings per share for profit attributable to the Shareholders (RMB cents per share)	股東應佔溢利之每股盈利 (每股人民幣分)
– basic – diluted	-基本 -攤薄	60.70 60.68	79.96 79.96

Basic earnings per share is calculated by dividing the profit attributable to the Shareholders by the weighted average number of ordinary shares in issue during the period. Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding assuming the conversion of all dilutive potential ordinary shares.

During the Period, the 2,000,000 outstanding share options issued in July 2022 is not included in the calculation of diluted earnings per share because the average market price of ordinary shares for the Period did not exceed the exercise prices of the share option, hence the share options have no dilution for the Period. These options could potentially dilute basic earnings per share in the future.

Earnings per share – basic and diluted for the Period was RMB60.70 cents and RMB60.68 cents respectively (equivalent to HK68.67 cents and HK68.65 cents) (Corresponding Period: RMB79.96 cents and RMB79.96 cents respectively (equivalent to HK96.53 cents and HK96.53 cents)).

每股基本盈利乃按股東應佔溢利除以期 內已發行普通股加權平均數計算。每股 攤薄盈利乃假設兌換全部具攤薄性的潛 在普通股,透過調整發行在外的普通股 加權平均數計算。

於期內,於計算每股攤薄盈利時,不計 及於二零二二年七月發行的2,000,000份 尚未行使購股權,原因為期內普通股平 均市價並未超過購股權的行使價,因此 於期內,並無相關購股權具有攤薄作用。 相關購股權日後可能會攤薄每股基本盈利。

期內每股基本及攤薄盈利分別為人民幣 60.70分及人民幣60.68分(相當於68.67 港仙及68.65港仙)(去年同期:分別為 人民幣79.96分及人民幣79.96分(相當 於96.53港仙及96.53港仙))。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

12. PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

1. 物業、廠房及設備以及無形資 產

		Property, plant and equipment 物業、廠房	Intangible assets	Total
		及設備 RMB'000 人民幣千元	無形資產 RMB'000 人民幣千元	總計 RMB'000 人民幣千元
Six months ended 30 June 2022	截至二零二二年六月 三十日止六個月
Opening net book amount at 1 January 2022 Additions Disposals Depreciation and amortisation Impairment charge	於二零二二年一月一日 的期初賬面淨值 添置 出售 折舊及攤銷 減值支出	9,284,867 324,759 (3,104) (568,630) (4,603)	48,323 342 – (3,041) –	9,333,190 325,101 (3,104) (571,671) (4,603)
Closing net book amount at 30 June 2022	於二零二二年六月 三十日的期末賬面 淨值	9,033,289	45,624	9,078,913
Six months ended 30 June 2023 Opening net book amount at 1 January 2023 Additions Disposals Depreciation and amortisation Exchange difference	截至二零二三年六月 三十日止六個月 於二零二三年一月一日 的期初賬面淨值 添置 出售 折舊及攤銷 匯兌差額	9,455,464 879,948 (7,970) (558,913) 8,840	45,446 3,606 – (3,681) –	9,500,910 883,554 (7,970) (562,594) 8,840
Closing net book amount at 30 June 2023	於二零二三年六月 三十日的期末賬面 淨值	9,777,369	45,371	9,822,740

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

13. LEASES

This note provides information for leases where the Group is a lessee.

(i) Amounts recognised in the interim condensed consolidated balance sheet

The interim condensed consolidated balance sheet shows the following amounts relating to leases:

13. 租賃
--------	--

本附註提供本集團作為承租人所訂立租 賃的資料。

(i) 確認於中期簡明合併資產負債 表的金額 中期簡明合併資產負債表顯示以下 與租賃有關的金額:

		As at
		於
		30 June	31 December
		2023	2022
		二零二三年	二零二二年
		六月三十日	十二月三十一日
		RMB'000	RMB'000
		人民幣千元	人民幣千元
Right-of-use assets	使用權資產
Leasehold land-use rights (a)	租賃土地使用權(a)	901,932	831,361
Buildings	樓宇	804	1,262
Equipment	設備	107	124
		902,843	832,747
Lease liabilities	租賃負債
Current	流動	865	890
Non-current	非流動	117	514
		982	1,404

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

13. LEASES (Continued)

13. 租賃(續)

• (i) Amounts recognised in the interim condensed consolidated balance sheet (Continued)

• (a) Leasehold land-use rights

• (i) 確認於中期簡明合併資產負債 表的金額(續)

• (a) 租賃土地使用權

		Leasehold land-use rights 租賃土地使用權 RMB'000 人民幣千元
Six months ended 30 June 2022	截至二零二二年六月三十日 止六個月
Opening net book amount at 1 January 2022	於二零二二年一月一日的
	期初賬面淨值	792,799
Additions	添置	58,153
Depreciation and amortisation	折舊及攤銷	(10,394)
Closing net book amount at 30 June 2022	於二零二二年六月三十日的 期末賬面淨值	840,558
Six months ended 30 June 2023	截至二零二三年六月三十日 止六個月
Opening net book amount at 1 January 2023	於二零二三年一月一日的
	期初賬面淨值	831,361
Additions	添置	81,129
Depreciation and amortisation	折舊及攤銷	(10,558)
Closing net book amount at 30 June 2023	於二零二三年六月三十日的 期末賬面淨值	901,932

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

13. LEASES (Continued)

purposes.

13. 租賃(續)

(ii) 確認於中期簡明合併利潤表的 金額 中期簡明合併利潤表顯示以下與租 賃有關的金額: (ii) Amounts recognised in the interim condensed consolidated income statement The interim condensed consolidated income statement shows the following amounts relating to leases:

		Half-year 半年度
		2023 二零二三年 RMB'000 人民幣千元	2022 二零二二年 RMB'000 人民幣千元
Depreciation charge of right-of-use assets	使用權資產折舊支出
Leasehold land-use rights Buildings Equipment	租賃土地使用權 樓宇 設備	10,558 458 17	10,394 377 12
		11,033	10,783
Interest expense (included in finance costs) Expense relating to short-term leases (included in administrative expenses)	利息開支(包括於財務成本) 短期租賃有關的開支(包括 於行政開支)	34 3,994	43 5,164
The total cash outflow for leases during the Period was RMB4,450,000 (Corresponding Period: RMB5,589,000).		期內租賃現金流出總額為人民幣 4,450,000 元(去 年 同 期:人 民 幣 5,589,000元)。
(iii) The Group's leasing activities and how these are accounted for The Group leases various offices, warehouses and equipment. Rental contracts are typically made for fixed periods of 1 to 3 years.		(iii) 本集團租賃活動及該等租賃 如何入賬 本集團租賃眾多辦公室、倉庫及設 備。租賃合約通常為一至三年的固 定期限。
Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants. Leased assets may not be used as security for borrowing		租期可根據個別基準磋商,其中包 括各種不同條款及條件。租賃協議 並不施加任何約定。租賃資產不得 用作借款的抵押品。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

14. INTERESTS IN ASSOCIATES

14. 於聯營公司的權益

The carrying amount of equity-accounted investments has changed as follows in the Period and the Corresponding Period:

於期內及去年同期,權益入賬投資的賬 面值變動如下:

		Half-year 半年度
		2023 二零二三年 RMB'000 人民幣千元	2022 二零二二年 RMB'000 人民幣千元
Beginning of the period	期初	194	9,090
Loss for the period	期內虧損	(194)	(888)
Impairment charge*	減值支出*	–	(7,483)
End of the period	期末	–	719
* During the Corresponding Period, an impairment loss of RMB7,483,000 was		於去年同期,就於吉林中糧生物材料有限公 *

recognised for the investment in Jilin COFCO Biomaterial Co., Ltd., reducing the carrying amount of the investment to recoverable amount based on value-in-use calculations.

司的投資確認減值虧損人民幣7,483,000元, 將投資的賬面值降低至按使用價值計算的可 收回金額。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

15. TRADE, OTHER RECEIVABLES AND PREPAYMENTS

15. 應收貿易賬款、其他應收款項 及預付款項

		As at 於
		30 June 2023 二零二三年 六月三十日 RMB'000 人民幣千元	31 December 2022 二零二二年 十二月三十一曰 RMB'000 人民幣千元
Trade receivables (a)	應收貿易賬款(a)	1,067,800	1,094,634
Less: provision for impairment loss	減:計提減值虧損撥備(附註5.2(ii))
allowance (Note 5.2(ii))		(66,934)	(33,297)
Trade receivables – net Deposits and others Loan to a related party (Note 22(c)) Loan to a third party (b) Less: provision for impairment loss	應收貿易賬款-淨額 按金及其他 給予一名關聯方的貸款(附註22(c)) 給予一名第三方的貸款(b) 減:計提減值虧損撥備	1,000,866 120,682 22,007 50,000	1,061,337 74,679 10,658 50,000
allowance		(50,000)	(50,000)
Loan to a third party – net Loans to employees Value-added tax for future deduction Prepaid current income tax Interest receivables	給予一名第三方的貸款-淨額 給予僱員的貸款 用於日後扣減的增值稅 預付即期所得稅 應收利息	– 322 70,871 358 2,814	– 3,566 74,197 13,818 7,958
		1,217,920	1,246,213
Notes receivable (c)	應收票據(c)	850,121	654,942
Trade and other receivables	應收貿易賬款及其他應收款項	2,068,041	1,901,155
Prepayments to suppliers	預付供應商款項	790,931	615,832
Less: non-current portion	減:非即期部分	2,858,972	2,516,987
Prepayments for non-current assets (d)	非流動資產預付款項(d)	(365,781)	(150,398)
		2,493,191	2,366,589

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

15. TRADE, OTHER RECEIVABLES AND PREPAYMENTS (Continued)

15. 應收貿易賬款、其他應收款項 及預付款項(續)

• (a) At 30 June 2023 and 31 December 2022, the ageing analysis of the trade receivables based on invoice date was as follows:
• (a) 於二零二三年六月三十日及二零 二二年十二月三十一日,應收貿易 賬款按發票日期的賬齡分析如下:

		As at
		於
		30 June	31 December
		2023	2022
		二零二三年	二零二二年
		六月三十日	十二月三十一曰
		RMB'000	RMB'000
		人民幣千元	人民幣千元
Within 3 months	三個月內	990,279	1,076,025
3 to 12 months	三至十二個月	72,044	13,920
Over 12 months	超過十二個月	5,477	4,689

The Group sells its products to customers and receives settlement either in cash or in form of bank acceptance notes (Note (c)) upon delivery of goods. The bank acceptance notes are usually with maturity dates within six months. Certain major customers in the PRC and overseas with good payment history are offered credit terms of not more than three months.

(b) The loan to a third party was arranged via a financial trust company during 2019. During the year ended 31 December 2021, the loan was past due for collection as the third party was in financial difficulties. A full provision of RMB50,000,000 was recorded on the balance sheet to reflect the increase in credit risk. As there has been a significant increase in credit risk, the Group measured the impairment as lifetime expected credit losses.

本集團向顧客銷售其產品,乃於送 交貨品時以現金或以銀行承兌票據 (附註(c))形式收取結算款項。銀行 承兌票據一般為六個月內到期。具 備良好付款記錄的中國及海外若干 主要客戶會獲得不多於三個月的信 貸期。

1,067,800 1,094,634

(b) 於二零一九年內,給予一名第三方 的貸款是通過一間金融信託公司貸 出。截至二零二一年十二月三十一 日止年度,該貸款因第三方陷入財 政困難已逾期。已於資產負債表錄 得全數撥備人民幣50,000,000元, 以反映信貸風險的增加。因該貸款 信用風險顯著增加,本集團按其於 整個存續期內的預期信用損失計量 減值。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

15. TRADE, OTHER RECEIVABLES AND PREPAYMENTS (Continued)

(c) As at 30 June 2023, notes receivable were all bank acceptance notes aged less than one year, including a total amount of RMB753,922,000 (31 December 2022: RMB574,650,000) that have been endorsed to the suppliers. As the notes receivable are held for collection of contractual cash flows and for selling the financial assets, where the assets' cash flows represent solely payments of principal and interest, they are measured at FVOCI.

15. 應收貿易賬款、其他應收款項 及預付款項(續)

(c) 於二零二三年六月三十日,應收票 據均為賬齡少於一年的銀行承兌票 據,包括總額為人民幣753,922,000 元(二零二二年十二月三十一日: 人民幣574,650,000元)已背書予供 應商的票據。由於應收票據持作收 回合約現金流量及出售金融資產, 倘該等資產現金流量僅作為支付本 金及利息,則按公平值計入其他綜 合收益計量。

As at

於
30 June	31 December
2023	2022
二零二三年	二零二二年
六月三十日	十二月三十一曰
RMB'000	RMB'000
人民幣千元	人民幣千元

Current assets	流動資產
Notes receivable measured at FVOCI	按公平值計入其他綜合收益 計量的應收票據	850,121	654,942

On endorsing these notes receivables, there is no any related balance within the FVOCI reserve that needs to be reclassified to other gains/(losses) within profit or loss due to the fair value is equal to its face amount and no premium was recognised.

Information about the methods and assumptions used in determining fair value is provided in Note 5.4.

All of the financial assets at FVOCI are denominated in RMB.

(d) As at 30 June 2023, the prepayments for non-current assets amounting to RMB 365,781,000 (31 December 2022: RMB150,398,000) were payments for purchase of property, plant and equipment.

於該等應收票據進行背書時,按公 平值計入其他綜合收益的儲備中並 無任何相關結餘需要重新分類至損 益內的其他收益╱(虧損),原因為 公平值等於其面值且未確認溢價。

有關釐定其公平值的方法和假設的 信息列示於附註5.4。

按公平值計入其他綜合收益的所有 金融資產均以人民幣計值。

(d) 於二零二三年六月三十日,非流動 資產的預付款項人民幣365,781,000 元(二零二二年十二月三十一日: 人民幣 150,398,000 元)為 購 買 物 業、廠房及設備的款項。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

16. CASH AND CASH EQUIVALENTS AND RESTRICTED BANK BALANCES

16. 現金及現金等價物及受限制銀 行結餘

		As at 於
		30 June 2023 二零二三年 六月三十日 RMB'000 人民幣千元	31 December 2022 二零二二年 十二月三十一曰 RMB'000 人民幣千元
Cash and cash equivalents – Cash on hand – Cash in bank	現金及現金等價物 -手頭現金 -銀行現金	884 6,898,766	2,964 7,005,152
		6,899,650	7,008,116
Restricted bank balances – Term deposits over 3 months and within one year (a) – Restricted bank deposits (b)	受限制銀行結餘 -超過三個月但於一年內的 定期存款(a) -受限制銀行存款(b)	491,000 42,500	631,371 –
		533,500	631,371
Total cash and bank balances	現金及銀行結餘總額	7,433,150	7,639,487

(a) As at 30 June 2023, amounts of RMB490,000,000 of the term deposits over 3 months and within one year was pledged as security for bank borrowings of the Group.

As at 31 December 2022, term deposits over 3 months and within one year comprised of (i) amounts of RMB590,000,000 was pledged as security for bank borrowings of the Group; (ii) amounts of RMB28,500,000 was pledged as security for issuing notes payable of the Group; and (iii) amounts of RMB12,871,000 was pledged as security for issuing letter of guarantee.

(b) As at 30 June 2023, restricted bank deposits comprised of (i) amounts of RMB30,000,000 (31 December 2022: nil) was pledged as security for bank borrowings of the Group and (ii) amounts of RMB12,500,000 (31 December 2022: nil) was pledged as security for issuing notes payable of the Group.

(a) 於二零二三年六月三十日,超過三 個月但於一年內的定期存款人民幣 490,000,000元已抵押為本集團銀 行借貸的抵押品。

於二零二二年十二月三十一日,超 過三個月但於一年內的定期存款包 括(i)人民幣590,000,000已抵押為 本集團銀行借貸的抵押品;(ii)人民 幣28,500,000元已抵押為本集團發 行應付票據的抵押品;及(iii)人民幣 12,871,000元已抵押為出具擔保函 的抵押品。

(b) 於二零二三年六月三十日,受限制 銀行存款包括(i)人民幣30,000,000 元(二零二二年十二月三十一日: 無)已抵押為本集團銀行借貸的抵 押品;及(ii)人民幣12,500,000元(二 零二二年十二月三十一日:無)已 抵押為本集團發行應付票據的抵押 品。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

17. SHARE CAPITAL AND SHARE PREMIUM 17. 股本及股份溢價

					Amount 金額
		Number of authorised shares	Number of issued and fully paid shares	Ordinary shares	Share premium	Total
		法定股份	已發行及 繳足股份
		數目 '000 千股	數目 '000 千股	普通股 RMB'000 人民幣千元	股份溢價 RMB'000 人民幣千元	總計 RMB'000 人民幣千元
Balances as at 1 January 2022 and 30 June 2022	於二零二二年一月一日 及二零二二年六月 三十日的結餘	10,000,000	2,533,639	243,261	259,434	502,695
Balances as at 1 January 2023 and 30 June 2023	於二零二三年一月一日 及二零二三年六月 三十日的結餘	10,000,000	2,535,939	243,460	266,285	509,745

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

18. BORROWINGS

18. 借貸

		As at 於
		30 June	31 December
		2023	2022
		二零二三年	二零二二年
		六月三十日	十二月三十一曰
		RMB'000	RMB'000
		人民幣千元	人民幣千元
Non-current	非流動
– Bank borrowings, unsecured	-銀行借貸(無抵押)	948,000	584,500
Current	流動
– Bank borrowings, secured	-銀行借貸(有抵押)	880,000	880,000
– Bank borrowings, unsecured	-銀行借貸(無抵押)	4,085,368	4,488,575
		4,965,368	5,368,575
Total Borrowings	借貸總額	5,913,368	5,953,075

The carrying amount and fair value of non-current borrowings are as follows:

非流動借貸的賬面值及公平值如下:

		Carrying amount 賬面值		Fair value 公平值
			As at 於		As at 於
		30 June	31 December	30 June	31 December
		2023	2022	2023	2022
		二零二三年	二零二二年	二零二三年	二零二二年
		六月三十日	十二月三十一曰	六月三十日	十二月三十一曰
		RMB'000	RMB'000	RMB'000	RMB'000
		人民幣千元	人民幣千元	人民幣千元	人民幣千元
Bank borrowings, unsecured	銀行借貸(無抵押)	948,000	584,500	926,711	584,466

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

18. BORROWINGS (Continued)

1. 借貸(續) 借貸變動分析如下:

Movements in borrowings were analysed as follows:

		RMB'000
		人民幣千元
Six months ended 30 June 2022	截至二零二二年六月三十日止六個月
Opening amount as at 1 January 2022	於二零二二年一月一日的期初金額	4,227,044
New borrowings	新造借貸	4,646,648
Repayments of bank borrowings	償還銀行借貸	(1,368,819)
Amortisation of transaction cost	交易成本攤銷	10,141
Exchange differences	匯兌差額	147,530
Closing amount as at 30 June 2022	於二零二二年六月三十日的期末金額	7,662,544
Six months ended 30 June 2023	截至二零二三年六月三十日止六個月
Opening amount as at 1 January 2023	於二零二三年一月一日的期初金額	5,953,075
New borrowings	新造借貸	4,769,368
Repayments of bank borrowings	償還銀行借貸	(4,809,075)
Closing amount as at 30 June 2023	於二零二三年六月三十日的期末金額	5,913,368

Interest expenses on borrowings for the Period were RMB93,614,000 (Corresponding Period: RMB91,379,000).

(a) Loan covenants

The Group's certain bank borrowings are subject to the fulfilment of covenants relating to certain debt servicing financial indicators. The Group regularly monitors its compliance with these covenants. As at 30 June 2023 and 31 December 2022, none of these covenants had been breached.

期內借貸利息開支為人民幣93,614,000 元(去年同期:人民幣91,379,000元)。

(a) 貸款契諾

本集團的若干銀行借款須遵守與若 干償債財務指標有關的契約條款。 本集團定期監察其遵守該等契約的 情況。於二零二三年六月三十日及 二零二二年十二月三十一日,本集 團並無違反該等契約條款。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

19. TRADE, OTHER PAYABLES AND ACCRUALS

19. 應付貿易賬款、其他應付款項 及應計費用

		As at
		於
		30 June	31 December
		2023	2022
		二零二三年	二零二二年
		六月三十日	十二月三十一曰
		RMB'000	RMB'000
		人民幣千元	人民幣千元
Trade payables (a)	應付貿易賬款(a)	1,134,502	1,374,599
Payables for property, plant and	物業、廠房及設備應付款項
equipment		631,873	585,354
Salaries, wages and staff welfares	應付薪金、工資及員工褔利
payables		442,102	426,451
Notes payable	應付票據	62,500	90,000
Interest payables	應付利息	6,803	7,523
Other payables and accruals	其他應付款項及應計費用	631,359	556,923
		2,909,139	3,040,850
Less: non-current portion	減:非流動部分
Other payables (b)	其他應付款項(b)	(58,450)	(73,618)
		2,850,689	2,967,232

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

19. TRADE, OTHER PAYABLES AND ACCRUALS (Continued)

19. 應付貿易賬款、其他應付款項 及應計費用(續)

• (a) The ageing analysis of the trade payables was as follows:
• (a) 應付貿易賬款的賬齡分析如下:

		於	As at
		30 June 2023 二零二三年 六月三十日 RMB'000 人民幣千元	31 December 2022 二零二二年 十二月三十一曰 RMB'000 人民幣千元
Within 3 months	三個月內	967,849	1,241,157
3 to 6 months	三至六個月	51,535	53,903
6 to 12 months	六至十二個月	23,970	19,354
1 to 2 years	一至兩年	61,806	35,909
Over 2 years	兩年以上	29,342	24,276
		1,134,502	1,374,599

• from certain third parties, which is repayable in 3 years from the balance sheet date. The interest rate on such other payables during the Period was 5.25% per annum (Corresponding Period: 5.25% per annum).
• 若干第三方借款,將於資產負債表 日後3年內償還。該其他應付款項 於期內的利率為每年5.25%(去年同 期:每年5.25%)。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

20. DIVIDENDS

On 30 March 2023, the Board proposed a final dividend in respect of the year ended 31 December 2022 of HKD735,422,000 (equivalent to RMB643,789,000), representing HKD29.0 cents (equivalent to RMB25.4 cents) per share and a special final dividend of HKD103,974,000 (equivalent to RMB91,018,000) representing HK4.1 cents (equivalent to RMB3.6 cents) per share. The final dividend paid in June 2023 amounted to HKD 839,396,000 (equivalent to RMB748,943,000). The difference between proposed and paid final dividends was due to the impact of exchange rate fluctuation.

At a meeting held on 30 August 2023, the Board proposed an interim dividend of HKD583,392,000 (equivalent to RMB534,953,000) (Corresponding Period: HKD811,265,000 (equivalent to RMB708,105,000)), representing HK23.0 cents (equivalent to RMB21.0 cents) (Corresponding Period: HK32.0 cents (equivalent to RMB27.9 cents)) per share.

At a meeting held on 30 August 2022, in addition to the interim dividend, the Board proposed a special interim dividend of HKD116,619,000 (equivalent to RMB101,790,000) representing HK4.6 cents (equivalent to RMB4.0 cents) per share.

The interim dividend has not been recognised as a dividend payable in this interim financial information, but will be recognised as an appropriation from the retained earnings for the year ending 31 December 2023.

21. CONTINGENT LIABILITIES

As at 30 June 2023 and 31 December 2022, the Group had no material contingent liabilities.

22. RELATED PARTY TRANSACTIONS AND BALANCES

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operation decisions. Parties are also considered to be related if they are subject to common control.

20. 股息

於二零二三年三月三十日,董事會建議 就截至二零二二年十二月三十一日止年 度派付末期股息735,422,000港元(相當 於人民幣643,789,000元),即每股29.0 港仙(相當於人民幣25.4分)以及特別末 期股息103,974,000港元(相當於人民幣 91,018,000元),即每股4.1港仙(相當於 人民幣3.6分)。二零二三年六月派付的 末期股息為839,396,000港元(相當於人 民幣748,943,000元)。建議與已派付末 期股息之間的差額乃由於匯率波動影響 所致。

於二零二三年八月三十日召開的會議上, 董事會建議派發中期股息583,392,000港 元(相當於人民幣534,953,000元)(去年 同期:811,265,000港元(相當於人民幣 708,105,000元)),即每股23.0港仙(相 當於人民幣21.0分)(去年同期:32.0港 仙(相當於人民幣27.9分))。

於二零二二年八月三十日召開的會議上, 除中期股息外,董事會建議派發特別中 期股息116,619,000港元(相當於人民幣 101,790,000元),即每股4.6港仙(相當 於人民幣4.0分)。

中期股息並無於本中期財務資料中確 認為應付股息,惟將就截至二零二三年 十二月三十一日止年度確認為保留收益 撥款。

21. 或然負債

於二零二三年六月三十日及二零二二年 十二月三十一日,本集團並無重大或然 負債。

22. 關連方交易及結餘

倘一方有能力直接或間接控制另一方或 可於另一方作出財務及營運決策時施加 重大影響,雙方被視為有關聯。倘雙方 受共同控制時亦被認為有關聯。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

22. RELATED PARTY TRANSACTIONS AND BALANCES (Continued)

22. 關連方交易及結餘(續)

(a) Transactions with related parties The following transactions occurred with related parties:

(a) 與關連方的交易

與關連方進行以下交易:

			Half-year 半年度
		2023 二零二三年 RMB'000 人民幣千元	2022 二零二二年 RMB'000 人民幣千元
Loans granted to an associate of the Group Repayment of loan by an associate of	授予本集團一間聯營公司的 貸款 本集團一間聯營公司償還貸款	20,850	12,000
the Group Sale of products to an associate of	向本集團一間聯營公司	9,800	–
the Group Interest charged from an associate of	出售產品 向本集團一間聯營公司收取的	291	–
the Group Purchase of products from an associate	利息 向本集團一間聯營公司採購的	282	262
of the Group	商品	–	722

(b) Key management compensation

(b) 主要管理層酬金

		Half-year 半年度
		2023 二零二三年 RMB'000 人民幣千元	2022 二零二二年 RMB'000 人民幣千元
Salaries and allowances Pension costs – defined contribution plan 退休金成本-定額供款計劃 Share options granted	薪金及津貼 已授出購股權	9,300 500 663	7,604 334 187
		10,463	8,125

Key management are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, directly or indirectly, including directors and executive officers.

主要管理層為直接或間接有權及負 責規劃、支配及控制本集團業務的 該等人士,包括董事及高級行政人員。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

22. RELATED PARTY TRANSACTIONS AND BALANCES (Continued)

(c) Period-end/year-end balances with related parties

The following balances are outstanding at the end of the reporting period in relation to transactions with related parties:

Loans due from a related party

22. 關連方交易及結餘(續)

(c) 與關連方的期終╱年終結餘

以下有關與關連方交易的結餘於報 告期末尚未償付:

應收一名關連方貸款

		As at
		於
		30 June	31 December
		2023	2022
		二零二三年	二零二二年
		六月三十日	十二月三十一曰
		RMB'000	RMB'000
		人民幣千元	人民幣千元
– Loans to an associate of the Group	-給予本集團一間聯營公司的
	貸款
Beginning of the period/year	期╱年初	10,658	5,008
Loans advanced	已墊付貸款	20,850	12,000
Loan repayments received	已收貸款還款	(9,800)	(6,342)

End of period/year	期╱年末	22,007	10,658
Interest received	已收利息	–	(573)
Interest charged	利息支出	299	565

The balance with related party was unsecured, repayable within one year and the weighted average annual interest rate is 3.65%.

與關連方結餘為無抵押,須於一年 內償還及按加權平均年利率3.65% 計息。

For the six months ended 30 June 2023 截至二零二三年六月三十日止六個月

23. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

On 7 July 2023, Full Health (Hong Kong) Limited, a wholly-owned subsidiary of the Company entered into agreement with an independent third party for the disposal of 100% share holdings of Jiangsu Shenhua Pharmaceutical Co., Ltd. and its subsidiaries at a cash consideration of RMB346,900,000. The disposal was completed on 19 July 2023.

Details of the interim dividend proposed are described in Note 20.

Other than the above disclosed, there was no significant event of the Group occurred after the balance sheet date.

23. 資產負債表日後事項

於二零二三年七月七日,本公司全資附 屬公司康滿(香港)有限公司與獨立第三 方訂立協議,內容有關以現金代價人民 幣346,900,000元出售江蘇神華藥業有限 公司及其附屬公司全部股權。出售已於 二零二三年七月十九日完成。

建議派付中期股息的詳情載於附註20。

除上文所披露者外,本集團於資產負債 表日後並無發生重大事項。

CORPORATE INFORMATION 公司資料

Executive Directors

Mr. Li Xuechun Mr. Li Deheng Mr. Li Guangyu

Independent Non-executive Directors

Mr. Lau Chung Wai Mr. Zhang Youming Ms. Li Ming

Registered Office

Cricket Square Hutchins Drive, P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands

Principal Place of Business in the PRC

Building 4, Yuanchuang International Blue Bay Creative Park at the intersection of Torch Road and Juxianqiao Road Shangma Street, Chengyang District Qingdao, PRC

Principal Place of Business in Hong Kong

Suite 1204B–7A, 12/F, Tower 3 China Hong Kong City, 33 Canton Road Tsim Sha Tsui, Kowloon, Hong Kong

Company Secretary

Mr. Lee Wai Yin (resigned on 1 August 2023) Mr. Yau Wing Yiu (appointed on 1 August 2023)

Authorised Representatives

Mr. Li Xuechun Mr. Lee Wai Yin (resigned on 1 August 2023) Mr. Yau Wing Yiu (appointed on 1 August 2023)

Audit Committee

Mr. Lau Chung Wai (Chairman) Mr. Zhang Youming Ms. Li Ming

執行董事

李學純先生 李德衡先生 李廣玉先生

獨立非執行董事

劉仲緯先生 張友明先生 李銘女士

註冊辦事處

Cricket Square Hutchins Drive, P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands

中國主要營業地點

中國青島市 城陽區上馬街道 火炬路與聚賢橋路交匯處 遠創國際藍灣創意園4號樓

香港主要營業地點

香港九龍尖沙嘴 廣東道33號中港城 3座12樓1204B–7A室

公司秘書 李偉然先生(於二零二三年八月一日辭任) 邱榮耀先生(於二零二三年八月一日獲委任)

授權代表 李學純先生 李偉然先生(於二零二三年八月一日辭任) 邱榮耀先生(於二零二三年八月一日獲委任)

審計委員會 劉仲緯先生(主席) 張友明先生 李銘女士

CORPORATE INFORMATION (Continued) 公司資料(續)

Remuneration Committee

Mr. Lau Chung Wai (Chairman) Mr. Zhang Youming Ms. Li Ming

Nomination Committee

Mr. Li Xuechun (Chairman) Mr. Lau Chung Wai Mr. Zhang Youming Ms. Li Ming

Principal Bankers in the PRC

China Construction Bank Bank of China Agriculture Bank of China China Merchants Bank Shanghai Pudong Development Bank China Minsheng Bank

Principal Bankers in Hong Kong

Bank of China (Hong Kong) Limited Deutsche Bank AG, Hong Kong Branch Hang Seng Bank Limited Mizuho Bank Limited MUFG Bank Ltd., Hong Kong Branch

Independent Auditor

PricewaterhouseCoopers

Principal Share Registrar

Suntera (Cayman) Limited

Branch Share Registrar

Tricor Investor Services Limited

Stock Code Hong Kong Stock Exchange: 00546

Website www.fufeng-group.com

薪酬委員會

劉仲緯先生(主席) 張友明先生 李銘女士

提名委員會

李學純先生(主席) 劉仲緯先生 張友明先生 李銘女士

中國主要往來銀行

中國建設銀行 中國銀行 中國農業銀行 招商銀行 上海浦東發展銀行 中國民生銀行

香港主要往來銀行

中國銀行(香港)有限公司 德意志銀行香港分行 恒生銀行有限公司 瑞穗銀行 三菱UFJ銀行香港分行

獨立核數師 羅兵咸永道會計師事務所

股份過戶登記總處 Suntera (Cayman) Limited

股份過戶登記分處 卓佳證券登記有限公司

股份代號 香港聯合交易所︰00546

網址 www.fufeng-group.com

In this interim report, the following expressions shall have the following meanings unless the context otherwise requires:

於本中期報告內,除非文義另有所指,否則 下列詞彙具有以下涵義:

ASP	average selling price(s) of the products of the Group
平均售價	本集團產品的平均售價
Audit Committee	audit committee of the Board
審計委員會	董事會審計委員會
Board	the board of Directors
董事會	董事會
BVI	The British Virgin Islands
英屬處女群島	英屬處女群島
CG Code	Code on Corporate Governance Practice under Appendix 14 of the Listing Rules
企業管治守則	上市規則附錄十四項下企業管治常規守則
Company	Fufeng Group Limited
本公司	阜豐集團有限公司
Corresponding Period	six months ended of 30 June 2022
去年同期	截至二零二二年六月三十日止六個月
Director(s)	the director(s) of the Company
董事	本公司董事
FVOCI	fair value through other comprehensive income
按公平值計入其他綜合收益	按公平值計入其他綜合收益
FVPL	fair value through profit or loss
按公平值計入損益	按公平值計入損益
Group	the Company and its subsidiaries
本集團	本公司及其附屬公司
HKAS	Hong Kong Accounting Standard issued by HKICPA
香港會計準則	香港會計師公會頒佈之香港會計準則
HKFRS	Hong Kong Financial Reporting Standards issued by HKICPA
香港財務報告準則	香港會計師公會頒佈之香港財務報告準則

GLOSSARY (Continued) 詞彙(續)

HKICPA	Hong Kong Institute of Certified Public Accountants
香港會計師公會	香港會計師公會
Hong Kong	the Hong Kong Special Administrative Region of the PRC
香港	中國香港特別行政區
Listing Rules	the Rules Governing the Listing of Securities on the Stock Exchange
上市規則	聯交所證券上市規則
Model Code	Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 of the Listing Rules
標準守則	上市規則附錄十所載上市發行人董事進行證券交易的標準守則
MSG	monosodium glutamate, a salt of glutamic acid which is commonly used as a flavour enhancer and additive in the food industry, restaurant and household application
味精	谷氨酸鈉,為食品業、食肆及家庭普遍用作調味劑及添加劑的谷氨酸鹽
New Share Option Scheme	the share option scheme adopted by the Company on 12 May 2017 for granting the share options to certain Directors and employees of the Company
新購股權計劃	本公司於二零一七年五月十二日採納的購股權計劃,以向若干董事及本公司僱員 授出購股權
Nomination Committee	nomination committee of the Board
提名委員會	董事會提名委員會
Period	six months ended of 30 June 2023
期內	截至二零二三年六月三十日止六個月
PRC	the People's Republic of China, which for the purpose of this report exclude Hong Kong, the Macau Special Administrative Region of the PRC and Taiwan
中國	中華人民共和國,就本報告而言,不包括香港、中國澳門特別行政區及台灣
Remuneration Committee	remuneration committee of the Board
薪酬委員會	董事會薪酬委員會
SFO	the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)
證券及期貨條例	香港法例第571章證券及期貨條例
Share(s)	share(s) in the share capital of the Company
股份	本公司股本中的股份

GLOSSARY (Continued) 詞彙(續)

Shareholder(s)	holder(s) of the Share(s)
股東	股份持有人
Stock Exchange	the Stock Exchange of Hong Kong Limited
聯交所	香港聯合交易所有限公司
VAT	value-added tax in PRC
增值稅	中國增值稅
U.S.	the United States of America
美國	美利堅合眾國
HKD	Hong Kong dollars, the lawful currency of Hong Kong
港元	香港法定貨幣港元
RMB	Renminbi, the lawful currency of the PRC
人民幣	中國法定貨幣人民幣
USD	United States dollars, the lawful currency of the U.S.
美元	美國法定貨幣美元
%	per cent
%	百分比