Chaoda Modern Agriculture : 20-21 ‍Annual Report

CHAODA MODERN AGRICULTURE

(HOLDINGS) LIMITED

(incorporated in the Cayman Islands with limited liability)

(Stock Code: 682 )

ANNUAL REPO RT

2020/202 1

Contents

Corporate Information	2
Chairman's Statement	4
Management Discussion and Analysis	6
Corporate Governance Report	9
Environmental, Social and Governance Report	21
Profiles of Directors and Senior Executives	54
Directors' Report	58
Independent Auditor's Report	71
Consolidated Statement of Profit or Loss and	76
Other Comprehensive Income
Consolidated Statement of Financial Position	78
Consolidated Statement of Cash Flows	80
Consolidated Statement of Changes in Equity	82
Notes to the Consolidated Financial Statements	83
Five Year Financial Summary	134

Corporate Information

BOARD OF DIRECTORS	REMUNERATION COMMITTEE
Executive Directors	Mr. Fung Chi Kin (Chairman)
Mr. Kwok Ho (Chairman)	Mr. Tam Ching Ho
Mr. Kuang Qiao
Mr. Kuang Qiao
Non-executive Director	NOMINATION COMMITTEE
Mr. Ip Chi Ming	Mr. Fung Chi Kin (Chairman)
Mr. Kwok Ho
Independent Non-executive Directors	Mr. Kuang Qiao
Mr. Tam Ching Ho
Mr. Fung Chi Kin	Professor Lin Shun Quan
Mr. Tam Ching Ho	AUTHORISED REPRESENTATIVES
Professor Lin Shun Quan
AUDIT COMMITTEE	Mr. Kwok Ho
Mr. Ip Chi Ming
Mr. Tam Ching Ho (Chairman)	COMPANY SECRETARY
Mr. Fung Chi Kin
Professor Lin Shun Quan	Mr. Yeung Man Chit

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Corporate Information

STOCK CODE

The Stock Exchange of Hong Kong Limited: 682

AUDITORS

Elite Partners CPA Limited

Certified Public Accountants

PRINCIPAL BANKS

China CITIC Bank Corporation Limited

Industrial Bank Co., Ltd.

Ping An Bank Co., Ltd.

Bank of Communications Co., Ltd.

Industrial and Commercial Bank of China Limited

China Construction Bank Corporation

China Minsheng Bank Corp., Ltd.

Agricultural Bank of China Limited

Bank of China Limited

REGISTERED OFFICE

P.O. Box 309

Ugland House

Grand Cayman

KY1-1104

Cayman Islands

HEAD OFFICE AND PRINCIPAL PLACE OF BUSINESS IN HONG KONG

Room B, 21st Floor

Times Media Centre

133 Wan Chai Road

Wanchai, Hong Kong

SHARE REGISTRAR AND TRANSFER OFFICE

Tricor Abacus Limited

Level 54

Hopewell Centre

183 Queen's Road East

Hong Kong

COMPANY'S WEBSITE

http://www.chaoda.com.hk

http://www.irasia.com/listco/hk/chaoda

2020 / 2021 ANNUAL REPORT		CHAODA MODERN AGRICULTURE (HOLDINGS) LIMITED	3

Chairman's Statement

I hereby present the annual results of Chaoda Modern Agriculture (Holdings) Limited (the "Company") and its subsidiaries (collectively referred to as the "Group" or "Chaoda") for the financial year ended 30 June 2021 on behalf of the board of directors (the "Board") of the Company.

REVIEW

At the beginning of 2021, the central government released the "No. 1 document" (一號文件), "Opinions of the State Council on Comprehensively Pushing forward Rural Revitalization and Accelerating Modernization of Agriculture and Rural Areas", stated that "Three Rural Issues" should be well solved during the "14th Five-Year Plan" period, focusing on accelerating agricultural modernization, optimizing the distribution of agricultural products trading, proposes the implementation of the Party and the Government having the same responsibility in terms of food security. This is the 18th consecutive year that the "No. 1 document" to show concern over the problem of "Agriculture, Rural Areas, and Rural People" in the PRC.

As for the above-mentioned central government's strategic action to ensure the effective supply of important agricultural products, food safety, etc., being a national key leading enterprise that has been rooted in China for 30 years, Chaoda has taken an initiative role in structural reforms on the supply side of agriculture. The Chaoda new business operation model was highly consistent with national guidelines and policies, which emphasize in protection of food safety, the realization of customized production of agricultural products by connecting the production and consumption, and the effective linkage mechanism between small farmers and modern agriculture. Once again it proves the forward-looking nature, correctness, great development prospects and potential of Chaoda new business operation model.

Due to the global macroeconomic factors and the pandemic of the novel coronavirus disease ("COVID-19"), the market is flooded with uncertainties. The financial year ending 30 June, 2021 is still a difficult and challenging year for the Group. The Group needs to adjust and integrate resources from the above-mentionedsupply-side structural reform in agricultural. We expect that after the COVID-19 epidemic is basically over, the Group will intensify efforts to carry out pilot docking work, accelerate the implementation of projects, build urban agricultural demonstration areas, establish a cooperative agricultural system, and promote the construction of beautiful countryside. In June 2021, Chaoda was continuously recognised as "China's 500 Most Valuable Brands" by the World Brand Laboratory, ranking 83rd with a brand value of RMB65.8 billion.

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