香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準 確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產 生或因倚賴該等內容而引致的任何損失承擔任何責任。 HONG KONG FOOD INVESTMENT HOLDINGS LIMITED 香 港 食 品 投 資 控 股 有 限 公 司 (於香港註冊成立之有限公司) (股份代號：60) 截至二零二三年三月三十一日止年度業績公告 業績 香港食品投資控股有限公司（「本公司」）董事會（「董事會」）宣佈，本公司及其附屬公司 （以下統稱「本集團」）截至二零二三年三月三十一日止年度之初步綜合業績連同去年度 之比較數字如下： ...

Financial Performance - Revenue for the six months ended 30 September 2022 was HK$113,536,000, an increase of 21.5% compared to HK$93,461,000 for the same period in 2021[5] - Gross profit for the period was HK$22,839,000, representing a gross margin of 20.1%, up from HK$17,110,000 in the previous year[5] - Profit before tax was HK$10,544,000, compared to a loss of HK$768,000 in the same period last year, indicating a significant turnaround[5] - Net profit for the period was HK$10,455,000, compared to a loss of HK$1,112,000 in the previous year, marking a substantial improvement[8] - Earnings per share attributable to ordinary equity holders was HK$3.63, compared to a loss per share of HK$0.75 in the prior year[5] - The company reported a profit for the period of HK$9,415,000 for the six months ending 30 September 2022, compared to a loss of HK$1,948,000 in the previous period[19] Assets and Liabilities - Total non-current assets as of 30 September 2022 were HK$492,137,000, a decrease from HK$508,938,000 as of 31 March 2022[11] - Current assets totaled HK$156,889,000, down from HK$176,308,000 as of 31 March 2022, primarily due to a decrease in inventories[11] - Cash and cash equivalents were HK$84,674,000, a decrease from HK$92,452,000 as of 31 March 2022[11] - As of 30 September 2022, total non-current liabilities decreased to HK$13,520,000 from HK$18,938,000 as of 31 March 2022, representing a reduction of approximately 28.5%[13] - Net assets as of 30 September 2022 were HK$577,921,000, down from HK$604,969,000 as of 31 March 2022, indicating a decline of about 4.5%[13] - Total equity attributable to equity holders decreased to HK$570,630,000 as of 30 September 2022 from HK$598,718,000 as of 31 March 2022, a decrease of approximately 4.7%[19] Cash Flow and Financing - Net cash flows from operating activities were HK$16,937,000, a recovery from a cash outflow of HK$18,243,000 in the previous year[23] - Cash and cash equivalents at the end of the period were HK$84,674,000, down from HK$136,937,000 in the previous year, indicating a decrease of approximately 38%[23] - New bank and trust receipt loans amounted to HK$40,587,000, while repayments totaled HK$50,424,000, reflecting a net cash outflow from financing activities of HK$14,433,000[23] - The Group's investing activities resulted in a net cash outflow of HK$9,827,000, compared to a much smaller outflow of HK$315,000 in the prior year[23] Segment Performance - The Group operates in three segments: trading of frozen meats, seafood, and vegetables; restaurant operations; and marketing of meat products[44] - Segment revenue for external customers reached HK$113,536,000, with trading contributing HK$81,943,000, catering HK$29,851,000, and others HK$1,742,000[49] - The segment results showed a loss before tax of HK$2,026,000, with trading and catering segments reporting losses of HK$2,317,000 and HK$451,000 respectively[49] Shareholder Information - Director Tai Tak Fung holds 90,739,177 shares, representing approximately 34.95% of the company's total issued shares[162] - Careful Guide Limited holds 30,914,000 shares, approximately 11.91% of the company's total issued shares[162] - Special Access Limited holds 52,907,250 shares, approximately 20.38% of the company's total issued shares[162] - The total interests of Tai Tak Fung in the associated corporation FSMHL include 70,000,000 shares (18.22%), 74,250,000 shares (19.32%), and 115,228,000 shares (29.98%)[164] Corporate Governance - The Company is committed to good corporate governance, emphasizing transparency, accountability, and independence, and has complied with the Corporate Governance Code during the review period[192] - The Audit Committee, comprising three independent non-executive directors, reviewed the unaudited condensed consolidated interim financial statements for the six months ended 30 September 2022[200] - All directors confirmed compliance with the Model Code for Securities Transactions throughout the six months ended 30 September 2022[193] Strategic Initiatives - The company aims to enhance its market position through strategic initiatives, including potential market expansion and new product development[18] - The Group is adopting a prudent purchase strategy on traditional frozen meats while optimizing its product mix to achieve higher gross profit margins[131] - The Group aims to explore new potential customers, particularly in the supermarket and restaurant categories, to achieve sales growth and higher gross profit margins[132]

Financial Performance - For the financial year ended March 31, 2022, the Group's consolidated revenue was approximately HK$183,133,000, an increase of 39.8% from HK$131,120,000 in 2021[9]. - The loss attributable to equity holders of the Company was approximately HK$17,337,000, compared to a loss of HK$4,162,000 in 2021, resulting in a loss per share of HK6.68 cents, up from HK1.6 cents[9]. - The Group's consolidated revenue for the year ended March 31, 2022, was approximately HK$183,133,000, representing a 39.7% increase from HK$131,120,000 in the previous financial year[47]. - The catering business revenue increased by 180.9% to approximately HK$29,988,000, primarily due to the full-year contribution from the first "Gyumai" restaurant[55]. - The Group reported a revenue of HK$183,133,000 for the year ended March 31, 2022, an increase of 39.8% compared to HK$131,120,000 in 2021[106]. - The loss from continuing operations for the year was HK$15,760,000, compared to a loss of HK$3,739,000 in the previous year, indicating a significant decline in profitability[106]. Economic Environment - The economic environment in 2021-22 was impacted by the pandemic, the Russian-Ukraine conflict, and rising inflation, leading to weakened domestic consumption in Hong Kong[10]. - The catering industry in Hong Kong is anticipated to rebound steadily with the easing of social-distancing rules and lifting of travel restrictions[36]. Business Strategy and Operations - Despite challenges, the frozen meats trading business improved revenue by adopting a prudent purchase strategy and optimizing the product mix towards high-quality frozen meat products[16]. - The Group's strategy includes diversifying products towards the high-quality food segment to meet customer needs amid economic uncertainties[11]. - The Group plans to adapt its expansion strategy for opening new restaurants to align with future economic developments in Hong Kong[36]. - The Group opened its first restaurant brand "Gyumai" in Yuen Long, which performed well due to high-quality beef sourced from major regions[21]. - The Group's long-standing reputation and solid customer network helped achieve revenue growth despite the unstable economic environment[11]. Product and Market Development - The Group's exclusive distribution of Japanese wagyu beef brand "Satsuma" and Korean Lotte's Australian wagyu beef brand "L'Grow" met the growing demand for premium food[16]. - New products introduced by FSMHL, such as Japanese ice cream, eggs, milk, tofu, and rice, have gained popularity in the market[33]. - The Group recognizes the importance of brand building and marketing strategies, successfully establishing brands like "Satsuma" and "L'Grow" in the meat trading sector[26]. Financial Position and Investments - The Group's share of profit from Four Seas Mercantile Holdings Limited (FSMHL) for the financial year ended 31 March 2022 was HK$3,789,000, a decrease from HK$9,035,000 in 2021[34]. - FSMHL completed its full acquisition of Miyata Holdings Co., Ltd., which is expected to bring synergy to FSMHL and the Group due to its strong retail and distribution network[33]. - The Group continues to hold approximately 29.98% equity interest in FSMHL as a strategic investment in the food business[32]. - The Group's total banking facilities amounted to approximately HK$200,753,000, with 18% utilized as of March 31, 2022[95]. - Total assets as of March 31, 2022, amounted to HK$685,246,000, an increase from HK$684,036,000 in 2021[108]. - Total liabilities as of March 31, 2022, were HK$80,277,000, compared to HK$59,164,000 in 2021[108]. Operational Challenges - The catering business faced significant challenges due to Covid-19, with a substantial drop in customer numbers and transaction amounts compared to the previous fiscal year[22]. - The overall segment result of the frozen meats trading business recorded a loss of approximately HK$7,118,000, an increase of 290.2% compared to a loss of approximately HK$1,824,000 in the previous year[50]. - The catering segment's loss increased by 23.9% to approximately HK$1,409,000, compared to a loss of approximately HK$1,137,000 in the previous year[55]. Operational Metrics - The gross profit margin improved to 13.9% from 12.2% in the previous year[63]. - Trade receivables turnover days decreased to 24 days from 28 days in the previous year[63]. - Inventory turnover days increased to 106 days from 103 days in the previous year[63]. - Operating expenses to sales ratio increased to 18.4% from 16.0% in the previous year[63]. Future Outlook - The Group plans to open a third "Gyumai" restaurant in the second half of 2022, anticipating a rebound in business as social distancing measures are relaxed[56]. - The company provided a positive outlook for the upcoming year, projecting a revenue growth of 10% to 12% for fiscal year 2023[180]. - New product launches are expected to contribute an additional HKD 200 million in revenue, with a focus on expanding the product line in the health food sector[180]. - The board of directors emphasized the importance of sustainability in operations, aiming to reduce carbon emissions by 15% over the next three years[180].

Financial Performance - Revenue for the six months ended September 30, 2021, was HK$93,461,000, representing an increase of 46.2% compared to HK$63,983,000 for the same period in 2020[5]. - Gross profit for the period was HK$17,110,000, up 121.5% from HK$7,704,000 in the previous year[5]. - The company reported a loss for the period of HK$1,112,000, compared to a profit of HK$5,600,000 in the same period last year[5]. - Total comprehensive income for the period was HK$3,055,000, down from HK$16,298,000 in the previous year[8]. - Earnings per share for the period were reported at HK$-0.75, down from HK$2.10 in the same period last year[5]. - The company recorded a profit before tax of HK$768,000 for the six months ended September 30, 2021, compared to a profit of HK$5,600,000 for the same period in 2020[19]. - The Group recorded a loss attributable to equity holders of approximately HK$1,948,000, compared to a profit of approximately HK$5,459,000 in the previous year, primarily due to the absence of COVID-19 related government subsidies[123]. Assets and Liabilities - Non-current assets as of September 30, 2021, totaled HK$496,880,000, an increase from HK$488,496,000 as of March 31, 2021[11]. - Current assets increased to HK$207,542,000 from HK$195,540,000 as of March 31, 2021[11]. - Total liabilities as of September 30, 2021, were HK$76,495,000, with segment liabilities in trading at HK$54,553,000 and catering at HK$13,540,000[43]. - As of September 30, 2021, total non-current liabilities decreased to HK$10,466,000 from HK$13,589,000 as of March 31, 2021, representing a reduction of approximately 22.8%[13]. - Net assets increased to HK$627,927,000 as of September 30, 2021, compared to HK$624,872,000 as of March 31, 2021, reflecting a growth of 0.4%[13]. Cash Flow - The company reported a net cash outflow from operating activities of HK$18,243,000 for the six months ended September 30, 2021, compared to a net outflow of HK$2,619,000 for the same period in 2020[19]. - Cash and cash equivalents at the end of the period were HK$136,937,000, down from HK$159,888,000 as of September 30, 2020, showing a decrease of 14.3%[19]. - The company reported a net cash inflow from financing activities of HK$10,417,000 for the six months ended September 30, 2021, compared to HK$1,229,000 for the same period in 2020[19]. Segment Information - The Group's operating segments include trading of frozen meats, seafood, and vegetables, catering operations, and marketing of meat products[30][32]. - Sales to external customers in the trading segment amounted to HK$73,198,000, while catering segment sales were HK$17,743,000, and other sales were HK$2,520,000[50]. - Segment assets as of September 30, 2021, totaled HK$221,994,000, with trading segment assets at HK$186,981,000 and catering segment assets at HK$25,842,000[43]. Operational Highlights - The frozen meats trading business revenue increased by 29.4% compared to the same period last year, driven by an enhanced product portfolio[124]. - Customer traffic for the Group's restaurants rebounded significantly as consumers are willing to pay more for healthy and tasty food, leading to increased dine-in numbers and extended business hours[135]. - The newly opened restaurant "Gyumai" in Yuen Long performed outstandingly in revenue and profit, offering a variety of premium beef options, further enhancing the Group's presence in high-end catering[139]. Financial Management - The Group has banking facilities of HK$220,753,000 as of September 30, 2021, with 16% utilized[154]. - The Group's gearing ratio is 6%, indicating a low level of debt relative to equity[154]. - The Group's financial team is responsible for determining the policies and procedures for fair value measurement of financial instruments, reporting directly to the executive directors and audit committee[97]. Shareholder Information - The directors and chief executive hold a total of 90,739,177 shares, representing approximately 34.95% of the Company's total issued shares[166]. - As of September 30, 2021, Mr. Tai Tak Fung, Stephen holds 259,478,000 shares, representing approximately 67.52% of the total issued shares of FSMHL[30]. - No directors or chief executives had any interests or short positions in the shares of the company or its associated corporations as of September 30, 2021[173]. Market Conditions - Global supply of frozen meats was unstable, with delays in container shipments and increased freight costs due to COVID-19 screening procedures[126]. - The overseas customer traffic for restaurants and catering was significantly impacted by travel restrictions, leading to decreased food and beverage consumption by tourists[125].

Financial Performance - For the financial year ended 31 March 2021, the Group's consolidated revenue was HK$131,120,000, a decrease from HK$140,048,000 in 2020, representing a decline of approximately 6.6%[21] - The loss attributable to equity holders of the Company was HK$4,162,000, significantly improved from a loss of HK$24,111,000 in 2020, indicating a reduction in loss by approximately 82.7%[21] - The frozen meat trading turnover recorded HK$114,020,000, down from HK$125,544,000 in 2020, reflecting a decline of about 9.2%[35] - Overall revenue decreased by approximately 9.2% to HK$131,120,000 compared to HK$140,048,000 in the previous year due to the impact of COVID-19 pandemic[69] - The loss from continuing operations for the year was HK$3,739,000, compared to a loss of HK$24,056,000 in the previous year, indicating an improvement[115] Profitability and Cost Management - The Group's gross profit from frozen meats trading improved despite the overall turnover decline, indicating effective cost management strategies[35] - The overall gross profit margin improved despite the decline in sales, attributed to the focus on high-end meat sales[56] - Gross profit margin increased to 12.2% from 10.0% in the previous year, with trading operations showing a margin of 5.2% (up from 3.4%)[79] - Operating expenses to sales ratio decreased to 16.0% from 17.4%, mainly due to reduced impairment losses and government grants related to COVID-19[79] Business Development and Strategy - The Group opened a new restaurant "Gyumai" in February 2021, featuring high-quality beef options, aiming to enhance its presence in the high-end catering segment[37] - The Group plans to introduce more high-quality meat products and explore new sourcing territories to enhance business development[47] - The acquisition of 70% of Miyata Holdings Co., Ltd. by FSMHL is expected to boost business growth in the food sector[39] - The Group aims to capitalize on the potential of the Greater Bay Area market and expand into the Japanese market through its partnership with Miyata[48] - The Group adopted flexible pricing and procurement strategies to navigate the challenges posed by the pandemic and market conditions[29] Joint Ventures and Partnerships - The share of profit from Four Seas Mercantile Holdings Limited was HK$9,035,000, a turnaround from a loss of HK$5,940,000 in 2020[40] - The Group maintained a 29.98% equity interest in Four Seas Mercantile Holdings Limited as of 31 March 2021[38] - FSMHL reported a profit of HK$9,035,000 for the financial year ended 31 March 2021, compared to a loss of HK$5,940,000 in 2020[83][86] - FSMHL's distribution network includes department stores, supermarkets, convenience stores, and specialty stores, contributing to steady sales during the pandemic[88] Market Conditions and Challenges - The COVID-19 pandemic and African Swine Fever impacted the supply chain, leading to increased procurement of frozen meat products from overseas[22] - The manufacturing business saw increased demand as consumers focused on food safety during the pandemic, supported by certifications such as HACCP and ISO[90][94] - The Group is cautiously optimistic about post-pandemic economic recovery and is actively seeking suitable locations at reasonable rents[65] Financial Position and Liquidity - As of 31 March 2021, FSMHL had banking facilities of HK$220,753,000, with only 10% utilized, indicating strong liquidity[99] - The Group's cash and cash equivalents amounted to HK$145,088,000 as of 31 March 2021[101] - The Group's bank borrowings totaled HK$220,753,000, with 10% utilized as of 31 March 2021[101] - Total assets as of 31 March 2021 were HK$684,036,000, while total liabilities were HK$59,164,000, resulting in a net asset position[118] Corporate Governance and Management - The Company has received annual confirmations of independence from all independent non-executive directors[138] - The directors' remuneration is reviewed by the remuneration committee and is based on their involvement, experience, and market levels[133] - The Company has undergone changes in Board composition, including the appointment of new directors and re-designation of existing ones[138] - The Company is preparing for the forthcoming annual general meeting where certain directors will offer themselves for re-election[138] Shareholding Structure - As of March 31, 2021, Stephen Tai Tak Fung holds 90,739,177 shares, representing approximately 34.95% of the Company's total issued shares[143] - Careful Guide Limited owns 30,914,000 shares, accounting for approximately 11.91% of the Company's total issued shares[145] - Special Access Limited owns 52,907,250 shares, representing approximately 20.38% of the Company's total issued shares[145] - CGL holds 70,000,000 shares, representing approximately 18.22% of the total issued shares of FSMHL[151] Employee and Operational Insights - The total number of employees as of 31 March 2021 was 65, with salaries reviewed annually based on performance[102] - The Company has a diverse board with independent non-executive directors having extensive experience in various industries, including insurance and finance[190][191][192] - The Group's management team includes experienced professionals with backgrounds in public companies and multinational corporations[197]

Financial Performance - Revenue for the six months ended September 30, 2020, was HK$63,983,000, a decrease of 16.7% compared to HK$76,831,000 in the same period of 2019[6]. - Gross profit for the period was HK$7,704,000, slightly down from HK$7,882,000, resulting in a gross margin of approximately 12.0%[6]. - Profit before tax was HK$5,600,000, a significant recovery from a loss of HK$2,126,000 in the previous year[6]. - Profit attributable to equity holders of the Company was HK$5,459,000, compared to a loss of HK$2,160,000 in the same period last year[6]. - Earnings per share attributable to ordinary equity holders was HK$2.10, recovering from a loss per share of HK$0.83 in the previous year[6]. - Total comprehensive income for the period was HK$16,298,000, compared to a loss of HK$18,643,000 in the same period of 2019[8]. - The company reported a profit of HK$5,459,000 for the period, compared to a loss of HK$2,160,000 in the previous period[24]. - Total comprehensive income for the period was HK$16,298,000, which includes HK$10,401,000 from associates[24]. Assets and Liabilities - Non-current assets increased to HK$466,445,000 from HK$457,689,000 as of March 31, 2020[13]. - Current assets rose to HK$209,567,000, up from HK$199,474,000 as of March 31, 2020[13]. - Total equity increased to HK$621,822,000 from HK$604,730,000 as of March 31, 2020[19]. - The company reported a net current asset position of HK$167,779,000, compared to HK$161,772,000 as of March 31, 2020[13]. - Cash and cash equivalents at the end of the period amounted to HK$159,888,000, a decrease from HK$167,716,000 in the previous year[25]. - Segment liabilities increased to HK$44,774,000 as of September 30, 2020, compared to HK$41,279,000 as of March 31, 2020, marking an increase of approximately 12.1%[37]. - The total trade and bills payables as of September 30, 2020, were HK$10,536,000, up from HK$9,970,000 as of March 31, 2020[69]. Cash Flow and Investments - Net cash flows from operating activities were negative at HK$2,011,000, compared to positive cash flow of HK$1,398,000 in the prior period[25]. - The company generated HK$6,837,000 from investing activities, down from HK$8,446,000 in the previous year[25]. - New bank and trust receipt loans totaled HK$43,529,000, while repayments were HK$41,076,000[25]. - The Group received dividends of HK$7,490,000 from associates during the period[25]. Segment Information - The Group has two reportable operating segments: trading of frozen meats, seafood, and vegetables in Hong Kong, and an "other" segment including restaurant operations and marketing of meat products[29]. - Segment performance is evaluated based on reportable segment profit/loss, which is a measure of adjusted profit/loss before tax[30]. - Segment revenue for the trading segment was HK$56,563,000 for the six months ended September 30, 2020, down from HK$68,785,000 in the same period of 2019, representing a decrease of approximately 17.5%[35]. - The overall trading business revenue in frozen meats decreased by 17.3% compared to the same period last year, impacted by COVID-19 restrictions on dining and tourism[100][104]. Acquisitions and Growth Strategies - Four Seas Japan acquired an additional 55% of Miyata Holding Co., Ltd. for approximately HK$71, increasing its equity interest from 15% to 70%[56]. - Provisional goodwill arising from the acquisition of Miyata was HK$85,744,000, primarily due to synergies from product integration[61]. - The acquisition of Miyata is expected to strengthen the Group's sales capabilities and expand its customer base, particularly in the high-quality food market in Hong Kong and mainland China[114]. - The Group aims to consolidate relationships with overseas suppliers and increase procurement from other meat-producing countries to mitigate supply chain challenges[114]. Shareholder Information - Approximately 34.95% of the Company's total issued shares are held by Tai Tak Fung, Stephen, indicating significant insider ownership[122]. - The total interests of substantial shareholders in the company are recorded in accordance with Section 336 of the SFO[139]. - The number of ordinary shares in issue during the period remained constant at 259,586,000 shares[53]. Corporate Governance - The company has complied with most of the Corporate Governance Code provisions, with specific deviations noted regarding the appointment terms of non-executive directors[154]. - The company confirmed that all directors complied with the required standards of dealings as set out in the Code of Conduct throughout the review period[163]. - There were changes in the board of directors, including the retirement of Mr. Tai Chun Leung and Mr. Chan Kay Cheung, and the appointment of Mr. Wong, Louis Chung Yin as an independent non-executive director[168][169]. Miscellaneous - The Group does not recommend the payment of any interim dividend for the six months ended September 30, 2020, consistent with the previous year[98][102]. - The Group's short-term employee benefits for key management personnel were HK$1,767,000, a decrease of 3.3% from HK$1,828,000 in the previous year[78]. - The interim results announcement for the Company was published on the Hong Kong Exchanges and Clearing Limited website and the Company's website[177].

Financial Performance - For the financial year ended 31 March 2020, the Group's consolidated revenue was HK$140,048,000, a decrease of 7.0% from HK$151,102,000 in 2019[20]. - The loss attributable to equity holders of the Company was HK$24,111,000, compared to a profit of HK$188,050,000 in 2019, resulting in a loss per share of HK9.29 cents[20]. - The Group's frozen meats trading revenue recorded HK$125,544,000, down 9.5% from HK$138,310,000 in 2019[24]. - The share of loss from associates was HK$5,940,000, compared to a profit of HK$9,044,000 in 2019[29]. - The Group's consolidated revenue for the year was HK$140,048,000, a decrease from HK$151,102,000 in the previous year, reflecting the impact of COVID-19 and social movements on consumer spending[41]. - Overall revenue decreased by approximately 7.3% to HK$140,048,000 for the year ended March 31, 2020, compared to HK$151,102,000 in 2019[53]. - Trading business revenue declined by about 9.2% to HK$125,544,000, impacted by COVID-19 and social movements in Hong Kong[53]. - The loss for the year from continuing operations was HK$24,056,000, compared to a profit of HK$188,226,000 in the prior year[95]. Market Challenges - The outbreak of African Swine Fever and COVID-19 significantly impacted the local economy and consumer spending, leading to challenges in the meats trading industry[20]. - The COVID-19 pandemic and local social movements negatively affected the restaurant and retail businesses of associates[29]. - The overall business environment for the frozen meats trading industry was volatile, with increased import demand from Mainland China due to local supply shortages[24]. - The Group's frozen meats trading business remains core, facing tightened supply and increased prices due to the African Swine Fever and trade tensions, which limited buying quantities and pressured profit margins[42]. - The Group's business outlook remains cautious, with expectations of continued challenges in the operating environment due to the ongoing effects of the pandemic[35]. Strategic Developments - The Group successfully developed its trading of Japanese wagyu beef, targeting high-end customer groups, benefiting from a partnership with a major Japanese wagyu farm operator[24]. - The Group plans to leverage its newly established Japanese office to expand procurement in Japan, aiming to diversify product categories and meet growing customer demands[35]. - The Group successfully acquired Miyata Holding Co., Ltd., enhancing its presence in the food distribution industry and creating a platform across Hong Kong, Mainland China, and Japan[34]. - The Group aims to expand its food distribution business in Hong Kong through partnerships with major chain stores like Don Don Donki, Aeon, and OK Convenience Store, solidifying its market leadership[36]. - The Group's trading of Japanese wagyu beef has shown steady development, helping to mitigate some negative impacts from the challenging business environment[42]. - The Group's strategy includes promoting its products on various e-commerce platforms in Mainland China, such as Taobao and Tmall, to increase sales and market share[36]. Operational Metrics - Gross profit margin slightly increased to 10.0% from 9.6% in the previous year, with trading operations' margin at 3.4% (down from 4.5%)[54]. - Trade receivables turnover improved to 39 days from 50 days in 2019, attributed to a higher proportion of sales from wet market customers[55]. - Inventory turnover days increased to 101 days from 89 days, with closing inventory at HK$27,450,000 (down from HK$36,422,000)[62][68]. - Operating expenses to sales ratio rose to 17.4% from 16.1%, mainly due to increased marketing expenses[63][69]. Corporate Governance - The Company has established an audit committee to review and supervise the Group's financial reporting system and internal control procedures[184]. - The audit committee comprises independent non-executive directors of the Company[184]. - Ernst & Young will be proposed for reappointment as the Company's auditor at the forthcoming AGM[185]. - The Company has complied with the corporate governance practices as detailed in the "Corporate Governance Report" of the annual report[183]. - The Group's independent non-executive directors have extensive experience in banking and insurance industries, contributing to corporate governance[163][167][164]. ESG and Social Responsibility - The Group is committed to "Green" operations and compliance with all relevant environmental regulations for its administrative and restaurant operations[197]. - The ESG report covers the Group's main operational activities based in Hong Kong, with regular assessments and discussions by the management team and key stakeholders[192]. - Stakeholder engagement was conducted to reassess ESG priorities and align them with the Group's objectives during the reporting year[192]. - The Group strives to create a circular economy that maximizes the value of natural resources as part of its corporate social responsibility[196]. - The Group's commitment to safeguarding food quality is emphasized, especially during the outbreaks of African Swine Fever and COVID-19[196].

Financial Performance - Revenue for the six months ended September 30, 2019, was HK$76,831,000, an increase of 7.4% from HK$71,453,000 in the same period of 2018[8] - Gross profit for the period was HK$7,882,000, representing a 43.1% increase compared to HK$5,510,000 in 2018[8] - Profit/(loss) for the period was a loss of HK$2,126,000, a significant decline from a profit of HK$197,488,000 in the previous year[10] - Total comprehensive loss for the period was HK$18,643,000, compared to a total comprehensive income of HK$173,867,000 in the same period of 2018[10] - The company reported a basic and diluted loss per share of HK$0.83, compared to earnings per share of HK$76.06 in the previous year[8] - The company reported a loss before tax of HK$2,126,000 for the six months ended September 30, 2019, compared to a profit of HK$197,327,000 in the same period of 2018[26] - The total comprehensive loss for the period was HK$18,677,000, compared to a total comprehensive income of HK$197,448,000 in the previous year[26] - Profit attributable to ordinary equity holders of the Company was a loss of HK$2,160,000 for the six months ended 30 September 2019, compared to a profit in the previous year[100] Assets and Liabilities - Non-current assets totaled HK$464,918,000 as of September 30, 2019, slightly down from HK$466,876,000 as of March 31, 2019[15] - Current assets decreased to HK$218,922,000 from HK$237,503,000 as of March 31, 2019, primarily due to a reduction in inventories[15] - Current liabilities decreased to HK$38,808,000 from HK$52,712,000, indicating improved liquidity management[15] - Total non-current liabilities increased to HK$17,229,000 as of September 30, 2019, compared to HK$235,000 on March 31, 2019[18] - Net assets decreased to HK$627,803,000 from HK$651,432,000 over the same period[18] - Total equity attributable to equity holders of the Company decreased to HK$624,773,000 from HK$648,342,000[18] - Total liabilities increased to HK$56,037,000 from HK$52,947,000, indicating a rise of 5.2%[81] Cash Flow - Cash flows from operating activities showed a net inflow of HK$1,398,000, contrasting with a net outflow of HK$32,609,000 in the previous year[26] - Cash and cash equivalents were HK$167,716,000, down from HK$175,590,000 as of March 31, 2019[15] - Cash and cash equivalents at the end of the period were HK$167,716,000, down from HK$185,861,000 a year earlier[26] - The Group held cash and cash equivalents of HK$167,716,000 as of 30 September 2019, with no significant changes in contingent liabilities[154] Segment Information - The Group's operating segments include a trading segment focused on frozen meats, seafood, and vegetables, and an "others" segment encompassing restaurant operations and marketing of meat products[68] - Segment revenue for the six months ended September 30, 2019, was HK$76,831,000, an increase of 7.5% from HK$71,453,000 in 2018[81] - Sales of goods contributed HK$68,785,000 to the total revenue, up from HK$65,412,000, reflecting a growth of 3.6%[85] - The segment results showed a loss of HK$5,473,000 for the trading segment, compared to a loss of HK$3,991,000 in 2018[81] Accounting Policies and Standards - The Group adopted HKFRS 16 for leases, which requires all leases to be accounted for under a single on-balance sheet model starting from April 1, 2019[36] - The financial impact of adopting new and revised HKFRSs in the current period has had no material effect on the amounts reported in the interim financial statements[38] - The Group's accounting policies for the preparation of interim financial statements are consistent with those used in the annual financial statements for the year ended March 31, 2019[29] - The Group has adopted several new and revised HKFRSs effective from April 1, 2019, which include amendments to HKFRS 9 and HKFRS 16[31] Lease Liabilities and Right-of-Use Assets - Lease liabilities recognized at April 1, 2019, were based on the present value of remaining lease payments, discounted using the incremental borrowing rate[46] - The right-of-use assets were recognized based on the carrying amount as if HKFRS 16 had always been applied, with assessments for impairment conducted on that date[47] - The Group's right-of-use assets as of September 30, 2019, amounted to HK$21,125,000, down from HK$23,932,000 as of April 1, 2019, reflecting a depreciation of HK$2,726,000 during the period[71] - Lease liabilities decreased to HK$22,085,000 as of September 30, 2019, from HK$24,748,000 as of April 1, 2019, after accounting for lease payments of HK$2,947,000[71] Shareholder Information - Director Tai Tak Fung, Stephen held 90,739,177 shares, representing approximately 34.95% of the Company's total issued shares[161] - Careful Guide Limited, owned by Tai Tak Fung, Stephen, held 30,914,000 shares, approximately 11.91% of the Company's total issued shares[164] - Special Access Limited, also owned by Tai Tak Fung, Stephen, held 52,907,250 shares, approximately 20.38% of the Company's total issued shares[164] - The total interests of Tai Tak Fung, Stephen in the associated corporation FSMHL included 70,000,000 shares, approximately 18.22% of FSMHL's total issued shares[171] Employee Information - As of September 30, 2019, the Group had a total of 46 employees, with remuneration packages generally structured based on market terms and individual qualifications[156]

EST FIFT Hong Kong Food Investment Holdings Limited 4A Annual Report 2019 年報 Contents 目錄 1 | --- | --- | |-------------------------------------------------------------------|-------| | | | | Corporate Information 公司資料 2-3 | | | Chairman's Statement 主席報告 4-6 | | | Management Discussion and Analysis 管理層討論及分析 7-10 | | | Report of the Directors 董事會報告 11-26 | | | Environmental, Social and Governance Report 環境、社會及管治報告 | 27-34 | | Corporate Governance Report 企業管治報告 35-47 | | | Independent Auditor's Report 獨立核數師報告 ...