Core Viewpoint - The company aims to diversify its product offerings by exporting various new products from China to Asian and European markets, responding to the challenges faced in its current fast-moving consumer goods (FMCG) trade business [1][2] Group 1: Business Strategy - The company intends to expand its packaging food, beverage, and household consumer goods trade business due to significant improvements in the quality and price advantages of Chinese products [1] - The company is continuously reviewing its import trade operations to streamline unprofitable segments and reduce operational costs in response to increasing competition from local brands [1] - The company plans to expand its agricultural processing center in Dongguan, which serves as a crucial hub for fresh agricultural product trade, providing pre-prepared and cooked fresh produce to well-known fast-food chains and school canteens [1] Group 2: Market Conditions - The FMCG trade business is facing adverse market conditions due to the growing preference of Chinese consumers for local products, driven by competitive pricing and increased market share through advertising [1] - The company believes that its established supply chain and market expertise in China will support the development of its export business and local fresh agricultural product trade [2]

Core Insights - The company intends to expand its product offerings by exporting various new products from China to Asian and European markets to enhance its current trade in packaged foods, beverages, and fast-moving consumer goods [1] - The decision is driven by significant improvements in the quality of Chinese products and their price advantages, alongside increasing competition negatively impacting the company's existing import trade operations [1] - The company plans to streamline its unprofitable import trade operations while closely monitoring market conditions to maintain competitiveness in the fast-moving consumer goods sector [1] Business Expansion Plans - The company aims to expand its agricultural processing center located in Dongguan, China, which serves as a crucial hub for fresh agricultural product trade [1] - The processing center has seen stable growth in demand and revenue post-pandemic, providing pre-prepared, processed, and ready-to-cook fresh agricultural products to well-known fast-food chains and school canteens [1] - The company will explore further expansion of this business within the domestic market in China [1] Strategic Rationale - The board believes that entering new markets will help diversify the company's revenue sources and address the challenges faced by its fast-moving consumer goods trade [2] - The company is confident that its established supply chain and market expertise in China will support the development of its export business and local fresh agricultural product trade [2]

(股份代號: 00197) 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，並明確表示概不會就因本公告全部或任何部分 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。 HENG TAI CONSUMABLES GROUP LIMITED 亨泰消費品集團有限公司 ( 於開曼群島註冊成立的有限公司 ) 代表董事會 亨泰消費品集團有限公司 主席 林國興 自願公告 – 業務更新 本公告由亨泰消費品集團有限公司（「本公司」，連同其附屬公司，統稱「本 集團」）自願作出，旨在向本公司股東（「股東」）及潛在投資者更新本集團 的最新業務發展。 本公司董事（「董事」）會（「董事會」）謹此通知本公司股東及潛在投資 者，本集團有意拓展不同種類的新產品選項，由中國出口至亞洲及歐洲市場， 以擴充其現時的包裝食品、飲料及家庭消費品貿易業務（「快速消費品貿易業 務」）。此舉措的考量是因中國產品品質的大幅提升及其價格優勢，加上市場 競爭日益激烈而對本集團現有的進口貿易業務產生的不利影響。由於本地品牌 價格具有競爭力及透過廣告活動增加市場份額，使中國消費者對本地商品的偏 好日 ...

Core Viewpoint - The announcement details a significant partnership and investment involving昊海生物科技,亨泰光学, and亨泰视觉, which includes exclusive distribution rights and equity acquisition, indicating a strategic move to enhance market presence in the optical lens sector [1][2]. Group 1: Exclusive Distribution Agreement -昊海生物科技's subsidiary,昊海控股, has signed an exclusive distribution agreement with亨泰光学 and亨泰视觉 for high-end orthokeratology contact lenses "迈儿康myOK" in mainland China for a duration of 10 years, expiring on December 31, 2030 [1]. - The agreement also grants昊海控股 exclusive distribution rights for children's myopia management optical lenses "贝视得" in mainland China [1]. Group 2: Equity Acquisition -昊海发展, another subsidiary of昊海生物科技, has entered into an investment agreement to acquire a 55% stake in亨泰视觉 for RMB 25 million, making亨泰视觉 a controlled subsidiary and included in the consolidated financial statements of the company [1]. - Following a change in control of亨泰光学 due to a proposed acquisition by Carl Zeiss Vision International GmbH,昊海控股 and亨泰光学's major shareholders have signed a termination agreement for the existing cooperation [2]. - As part of the termination agreement,亨泰光学's major shareholders will pay昊海控股 a termination compensation of RMB 80 million [2].

Core Viewpoint - The company has entered into exclusive distribution agreements and investment agreements with Hengtai Optical and Hengtai Vision, which will significantly impact its market position in the high-end contact lens sector in China [1][2]. Group 1: Exclusive Distribution Agreements - The company’s wholly-owned subsidiary, Haohai Biotechnology Holdings, signed an exclusive distribution agreement with Hengtai Optical and Hengtai Vision for the high-end orthokeratology contact lens product "myOK" in mainland China for a duration of 10 years, expiring on December 31, 2030 [1]. - The agreement also includes the exclusive distribution rights for Hengtai Vision's optical lenses for children's myopia management, named "Beishide," in mainland China [1]. Group 2: Investment Agreement - The company’s subsidiary, Haohai Pharmaceutical Technology Development, has signed an investment agreement to acquire a 55% stake in Hengtai Vision for RMB 25 million, making Hengtai Vision a subsidiary and consolidating it into the company's financial statements [1]. Group 3: Termination of Existing Cooperation - Due to Carl Zeiss Vision International's intention to acquire 100% of Hengtai Optical, the existing cooperation between Haohai Holdings and Hengtai Optical will be terminated, with a compensation payment of RMB 80 million to Haohai Holdings [2]. - Following the termination, Hengtai Vision will transfer 45% of its shares from its minority shareholder to Haohai Development, making Hengtai Vision a wholly-owned subsidiary of Haohai Development [2].

Group 1 - Zhongshen Hengtai Capital Limited increased its stake in Hongji Group Holdings (stock code: 01718) by acquiring 23.04 million shares at a price of HKD 0.215 per share, totaling HKD 4.9536 million [1] - After the transaction, Zhongshen Hengtai Capital Limited holds a total of 23.04 million shares, representing a 10% ownership stake in Hongji Group Holdings [1] - The transaction also involves other related parties, including Zhongshen Jianye Holding Limited, Zhongshen Xihe Enterprise Limited, and Sang Xianfeng [1] Group 2 - The acquisition was disclosed on August 15, 2024, and is part of a broader strategy by the involved parties to increase their holdings in Hongji Group Holdings [2] - The average price per share for the transaction was HKD 0.215, consistent across all related parties involved in the acquisition [2]

Group 1 - Zhongshen Hengtai Capital Limited increased its stake in Hongji Group Holdings (01718) by acquiring 23.04 million shares at a price of HKD 0.215 per share, totaling HKD 4.9536 million [1] - After the transaction, Zhongshen Hengtai Capital Limited's total shareholding reached 23.04 million shares, representing a 10% ownership stake in Hongji Group Holdings [1] - The transaction involved other related parties, including Zhongshen Jianye Holding Limited, Zhongshen Xihe Enterprise Limited, and Sang Xianfeng [1]

Financial Performance - Revenue for the six months ended December 31, 2024, was HKD 238,310,000, a decrease of 1.0% from HKD 241,559,000 in the same period of 2023[1] - Gross profit decreased to HKD 17,493,000, down 10.1% from HKD 19,451,000 year-on-year[1] - Operating loss improved to HKD 37,961,000, compared to a loss of HKD 42,653,000 in the previous year, reflecting a reduction of 10.5%[1] - Loss for the period was HKD 38,238,000, a decrease of 10.5% from HKD 42,830,000 in the same period last year[2] - The total comprehensive loss for the period was HKD 38,238,000, down from HKD 42,830,000 year-over-year, indicating a reduction in losses[27] - The reported loss for the six months ended December 31, 2023, was HKD 38,238,000, an improvement from a loss of HKD 42,830,000 in the same period of the previous year[21] - Basic loss per share for the six months ended December 31, 2023, was HKD 0.22, based on a weighted average of 173,785,781 shares, compared to HKD 0.40 for the same period in 2022[29] Assets and Liabilities - Total assets decreased to HKD 841,971,000 from HKD 869,556,000, a decline of 3.2%[3] - The company’s equity attributable to owners decreased to HKD 752,492,000 from HKD 786,891,000, a decline of 4.4%[4] - The group’s total liabilities increased from HKD 82,700,000 as of June 30, 2024, to HKD 89,500,000 as of December 31, 2024[59] - As of December 31, 2024, the group's current assets were approximately HKD 490,800,000, while current liabilities were about HKD 72,200,000, resulting in a current ratio of approximately 6.8[59] - The total assets of the group as of December 31, 2024, were approximately HKD 842,000,000, with total liabilities of about HKD 89,500,000[59] Cash Flow and Financing - Cash and cash equivalents at the end of the period were HKD 67,165,000, down from HKD 86,933,000, a decrease of 22.6%[6] - The company reported a net cash outflow from operating activities of HKD 19,352,000, an improvement from HKD 35,449,000 in the previous year[6] - The company issued new shares raising HKD 4,601,000 during the period[6] - The group raised approximately HKD 4,600,000 from a placement on August 12, 2024, with the net proceeds intended for general working capital[66] - The group raised approximately HKD 17,400,000 from a rights issue on May 24, 2024, with planned uses including HKD 13.9 million for fertilizer trade business development and HKD 3.5 million for general working capital[63][65] Revenue Breakdown - Revenue from consumer goods sales was HKD 140.87 million, down 4.56% from HKD 147.40 million year-on-year[13] - Revenue from agricultural products sales increased by 3.03% to HKD 95.89 million compared to HKD 92.66 million in the previous year[13] - The rapid consumer goods trading business contributed approximately 59% to the group's total revenue, with a year-on-year decline of about 4.4% due to intense competition and price freezes[53] - The agricultural products business generated approximately HKD 95,900,000, an increase of about 3.5% compared to the previous year, driven by improved pricing from imported agricultural products[53] - The upstream farming business's revenue increased by approximately 5.2% due to improved planting techniques leading to higher prices[54] Expenses and Cost Management - Sales and distribution expenses increased by approximately 11.4% to about HKD 22.2 million, representing about 9.3% of revenue compared to 8.2% in the previous year[47] - Administrative expenses increased by approximately 3.9% to about HKD 31 million, remaining relatively stable compared to the previous year due to cost-saving measures[47] - Other operating expenses decreased from approximately HKD 5,700,000 to about HKD 2,400,000, primarily due to impairment losses on investments in Universal Global Group Limited[48] - The cost of goods sold for the six months ended December 31, 2023, was HKD 212,929,000, slightly down from HKD 217,010,000 in the same period of 2022[27] Corporate Governance and Management - The company has adhered to the Corporate Governance Code and confirmed compliance with the standards set forth in the Code during the reporting period[81] - The board of directors includes five executive directors and three independent non-executive directors[83] - The chairman of the company is Mr. Lin Guoxing[83] - The leadership team includes experienced professionals in the industry[83] - The board composition reflects a mix of executive and independent oversight[83] Market and Strategic Focus - The company continues to focus on expanding its market presence in both consumer goods and agricultural sectors[14] - The group is establishing an agricultural science industrial park to enhance product quality and brand establishment, including a fruit processing center[54] - The group plans to continue focusing on core businesses and expanding procurement networks to enhance competitiveness in the rapid consumer goods and agricultural products trading sectors[55] - The overall economic environment remains uncertain, with pressures on consumer sentiment due to the ongoing real estate crisis in China[55] Shareholder Information - Major shareholders include Mr. Zhou Yanwen with 25,753,774 shares (14.42%) and Best Global with 20,630,918 shares (11.55%) as of December 31, 2024[75] - No stock options were granted or exercised during the six months ending December 31, 2024, with 9,363,480 options available for grant, representing about 5.2% of the issued shares[70] Future Outlook - The company aims to enhance its market position through strategic initiatives[83] - The company is preparing for future growth opportunities[83] - The group aims to utilize available cash more effectively and seek higher interest income and potential capital gains amid global trade market uncertainties[57]

Financial Performance - For the six months ending December 31, 2024, the company reported revenue of HKD 238.31 million, a decrease of 1.04% compared to HKD 241.56 million in the same period last year[2]. - The cost of sales for the same period was HKD 220.82 million, slightly down from HKD 222.11 million, resulting in a gross profit of HKD 17.49 million, down 10.06% from HKD 19.45 million[2]. - The company experienced an operating loss of HKD 37.96 million, an improvement from a loss of HKD 42.65 million in the previous year, indicating a reduction in operational expenses[2]. - The net loss for the period was HKD 38.24 million, compared to a loss of HKD 42.83 million in the same period last year, reflecting a 10.5% improvement[3]. - The basic loss per share was HKD 40.2 cents, compared to HKD 22.0 cents in the previous year, indicating a significant increase in losses per share[2]. - The total comprehensive loss for the period was HKD 39.00 million, compared to HKD 41.86 million last year, indicating a positive trend in overall financial performance[3]. Revenue Breakdown - Revenue from consumer goods sales was HKD 140,871,000, down from HKD 147,395,000, representing a decline of 4.99%[19]. - Revenue from agricultural products sales increased to HKD 95,890,000, up from HKD 92,664,000, marking a growth of 3.43%[19]. - The total revenue from external customers in the Hong Kong market was HKD 25,378,000 for the six months ended December 31, 2024[20]. - Revenue from external customers for the six months ended December 31, 2024, was HKD 140,871,000, compared to HKD 147,395,000 for the same period in 2023, representing a decrease of approximately 4.5%[25]. Assets and Liabilities - Total assets decreased from HKD 869,556 million to HKD 841,971 million, a decline of approximately 3.2% year-over-year[5]. - The company reported a total of HKD 351,208 million in non-current assets, down from HKD 355,194 million, a decrease of approximately 1.1%[5]. - The company's total liabilities increased to HKD 89,479,000 as of December 31, 2024, compared to HKD 82,665,000 as of June 30, 2024, indicating an increase of approximately 8.7%[7]. - The company's total assets, net of current liabilities, decreased from HKD 803,737,000 to HKD 769,725,000, reflecting a decline of about 4.2%[7]. Cash Flow and Financing - Operating cash flow for the six months ended December 31, 2024, was a loss of HK$19,352,000 compared to a loss of HK$35,449,000 for the same period in 2023, indicating an improvement of 45.3%[9]. - Cash flow from investing activities generated a net amount of HK$13,443,000, up from HK$7,456,000 in the previous year, representing an increase of 80.5%[9]. - The company reported a significant reduction in bank borrowings, with repayments of HK$147,000 compared to HK$9,689,000 in the previous period, indicating a decrease of 98.5%[9]. - The company’s net cash flow from financing activities was HK$4,070,000, compared to a negative cash flow of HK$5,583,000 in the previous period, showing a turnaround[9]. Operational Expenses - Administrative expenses increased to HKD 31.05 million from HKD 29.87 million, indicating rising operational costs[2]. - Sales and distribution expenses increased by approximately 11.4% to about HKD 22,200,000, accounting for approximately 9.3% of revenue compared to 8.2% in the same period last year[58]. - Other operating expenses decreased from approximately HKD 5,700,000 to about HKD 2,400,000, primarily due to impairment losses on investments in Global Communications Group Limited[59]. Market Strategies and Future Outlook - The company continues to explore new strategies for market expansion and product development to enhance future growth prospects[2]. - The group aims to focus on core businesses by expanding procurement networks and sourcing competitive products for the Chinese consumer market[71]. - The group continues to invest in R&D to enhance agricultural technology, including establishing agricultural research and testing centers[69]. Shareholder Information - Major shareholders include Mr. Zhou Yanwen with 25,753,774 shares (14.42%) and Best Global with 20,630,918 shares (11.55%) as of December 31, 2024[98]. - The company has a stock option plan established on December 21, 2018, with no options granted, exercised, or lapsed as of December 31, 2024, and a total of 9,363,480 options available for grant, representing about 5.2% of the issued shares[91]. Governance and Compliance - The interim results for the six months ending December 31, 2024, have been reviewed by the company's audit committee but not audited by external auditors[106]. - The company has adopted the Corporate Governance Code and confirmed compliance with its provisions as of December 31, 2024[105]. - The board of directors consists of five executive directors and three independent non-executive directors as of the announcement date[109].

Financial Performance - For the fiscal year 2023/24, the company's revenue increased by approximately 0.3% to around HKD 442 million, primarily due to growth in domestic fresh agricultural products and upstream farming operations, although this was offset by a decline in traditional imported products [10]. - The net loss for the fiscal year 2023/24 was approximately HKD 196.4 million, compared to a net loss of about HKD 125.6 million in the previous fiscal year, with the increase in loss attributed to various factors including a 42.8% rise in selling and distribution expenses [10]. - The company's gross profit margin improved by approximately 1.2% during the fiscal year 2023/24, despite facing challenges from weak market demand and intense competition from domestic brands [10]. - The fast-moving consumer goods (FMCG) trading business experienced a revenue decline of about 2.7% compared to the previous fiscal year, impacted by weak market demand and aggressive pricing strategies from domestic competitors [11]. - The agricultural products business recorded revenue growth, driven by increased trade in domestic fresh agricultural products and upstream farming operations, despite facing similar competitive pressures as the FMCG sector [12]. - The company is actively developing its domestic fresh agricultural products and FMCG trading businesses to counter challenges posed by imported products, while also reducing unprofitable operations in securities brokerage and margin financing [9]. - The company is expanding its procurement network for domestic agricultural products, successfully negotiating lower procurement costs due to its larger operational scale [12]. - A food processing center located in Dongguan has commenced operations, significantly enhancing the development of domestic fresh product trade and improving procurement and transportation costs [12]. - The company plans to continue the process of reducing its securities brokerage and margin financing business until a complete exit from this business unit is achieved [9]. - Upstream farming business revenue increased by approximately 9.0% due to higher production and improved product quality from enhanced agricultural technology and better fertilizers [14]. - The company plans to promote new fertilizers in the domestic market to generate stable income sources in the future [14]. - The securities brokerage and margin financing business revenue decreased due to a weak capital market in Hong Kong and the company's strategy to gradually exit this business unit [14]. - The board decided not to recommend a final dividend for the year ending June 30, 2024, to maintain sufficient cash reserves amid unpredictable economic conditions [15]. - The company will focus on its core business and cautiously approach future developments, enhancing procurement networks and sourcing more suitable products from international and domestic suppliers [16]. - The company aims to enter the fertilizer trading business in China to create stable income sources while being conservative about new developments due to weak market demand and rising farming costs [16]. - Cost-saving measures will be implemented to reduce operating costs, and the company will thoroughly review development plans across business units to improve financial performance [16]. - The company believes its business model in providing one-stop services for fast-moving consumer goods and agricultural products will ensure high sustainability and long-term growth [17]. - The company is committed to strengthening its financial position to cope with unexpected adversities [16]. Revenue and Growth - The total revenue for the fiscal year was approximately HKD 442,000,000, a slight increase of about 0.3% compared to HKD 440,600,000 in the previous fiscal year [22]. - The contribution from domestic fresh agricultural products trade increased by approximately 17.1%, significantly offsetting the decline in revenue from traditional imported products [20]. - The gross profit margin improved from approximately 7.1% in the previous fiscal year to about 8.3%, primarily due to improved product mix and operational efficiency at the Dongguan food processing center [23]. - Other income and revenue rose to approximately HKD 12,300,000 from HKD 10,100,000 in the previous fiscal year, mainly driven by interest income from convertible bonds and bank deposits [24]. - The agricultural products business generated approximately HKD 172,500,000 in revenue, an increase of about 5.4% from HKD 163,600,000 in the previous fiscal year, mainly due to increased trade in domestic fresh agricultural products [30]. - Domestic agricultural product trading revenue increased by 17.1% compared to the previous fiscal year, contributing to a stable growth in total revenue from agricultural trading [31]. - The company confirmed an impairment loss of approximately HKD 112.8 million for certain assets and investments in the upstream farming business due to a decline in value [32]. Cost Management and Expenses - Sales and distribution expenses increased by approximately 42.8% from about HKD 30,500,000 to approximately HKD 43,600,000, accounting for about 9.9% of total revenue (previous fiscal year: 6.9%) [25]. - Administrative expenses decreased by approximately 3.0% from about HKD 64,300,000 to approximately HKD 62,400,000 due to cost-saving measures implemented by the company [25]. - Impairment losses on receivables and deposits increased to approximately HKD 6,300,000 from HKD 2,800,000 in the previous fiscal year, reflecting a cautious approach due to economic uncertainties [26]. - Non-financial asset impairment losses amounted to approximately HKD 112,800,000, primarily affecting upstream agricultural business assets [28]. - The company plans to enhance the efficiency of its food processing center to solidify the development of domestic agricultural trading [31]. - The company will implement stricter credit policies to mitigate risks associated with bad debts [59]. - The agricultural operations and distribution channels have shown improvement, but market demand remains weak, and rising cultivation costs pose threats to operations [60]. - The company plans to cautiously develop its agricultural business unit based on market demand and financial feasibility to minimize expenses and capital commitments [60]. Strategic Initiatives - The company is exploring opportunities to sell high-quality medical products in China through ongoing discussions with a domestic integrated healthcare and wellness products company [11]. - The company is actively seeking to procure new types of fertilizers from overseas suppliers to enhance its upstream farming operations [21]. - The company is attempting to enter the fertilizer trade business in China to generate stable revenue sources [60]. - The company is considering strategic acquisitions to bolster its product portfolio, with a budget of $30 million earmarked for potential targets [96]. - The company has initiated discussions with travel agencies to explore agricultural tourism business cooperation following China's economic reopening [32]. - The company maintains a conservative outlook on new developments in farming and agricultural tourism due to a weak economic environment and unpredictable weather conditions [32]. Corporate Governance and Compliance - The board emphasized the importance of maintaining strong corporate governance practices to mitigate risks associated with growth strategies [100]. - The company has adhered to all applicable corporate governance codes, ensuring transparency and accountability in its operations [100]. - The independent auditor's report will be presented at the upcoming annual general meeting, ensuring compliance with financial regulations [99]. - The board of directors held regular meetings to review and discuss the latest business developments and strategies, with all members attending 100% of the meetings [108]. - The audit committee conducted two meetings during the fiscal year ending June 30, 2024, with all members present, reviewing the group's financial reporting and internal control procedures [112]. - The remuneration committee held one meeting to evaluate the performance of executive directors and review the current compensation structure, with all members in attendance [113]. - The nomination committee convened once during the fiscal year, assessing the board's structure and composition, with full attendance from all members [114]. - The company adopted a whistleblowing policy and anti-corruption measures to enhance corporate governance mechanisms [109]. - The company secretary confirmed completion of no less than 15 hours of professional training to update skills and knowledge during the year [110]. - The company has established a risk management framework to identify and assess key inherent risks affecting its objectives [118]. - The board regularly discusses potential risks during meetings, ensuring close involvement in daily operations to monitor risks [118]. Financial Position and Assets - As of June 30, 2024, the group had floating rate borrowings of approximately HKD 100,000, significantly reduced from HKD 10,500,000 as of June 30, 2023 [51]. - The group has no significant unfulfilled hedging instruments as of June 30, 2024, and will monitor foreign currency risks closely [51]. - The group recorded a fair value gain of approximately HKD 5,900,000 and interest income of about HKD 4,300,000 from the investment in the convertible bond during the fiscal year [47]. - The company reported a total reserve of approximately HKD 816,445,000 as of June 30, 2024, compared to HKD 814,939,000 in 2023, indicating a slight increase of 0.18% [74]. - The company's share premium account was approximately HKD 2,455,999,000 as of June 30, 2024, up from HKD 2,439,015,000 in 2023, reflecting an increase of 0.69% [74]. - The company’s current assets were approximately HKD 514.4 million, down from HKD 591.8 million as of June 30, 2023, while current liabilities decreased to HKD 65.8 million from HKD 85.4 million [52]. - The current ratio improved to approximately 7.8 as of June 30, 2024, compared to 6.9 a year earlier [52]. - Total assets as of June 30, 2024, were approximately HKD 869.6 million, down from HKD 1,073.5 million in the previous year, with total liabilities decreasing to HKD 82.7 million from HKD 103.4 million [52]. - The debt-to-capital ratio was approximately 0.02% as of June 30, 2024, significantly lower than 1.0% a year prior, indicating a relatively low level of leverage [52]. - The company reported a significant increase in revenue for the fiscal year, with a total revenue of $500 million, representing a 20% growth compared to the previous year [96]. - The company’s cash and cash equivalents decreased from HKD 121,830,000 in 2023 to HKD 82,527,000 in 2024, a drop of around 32% [147]. - Total liabilities decreased from HKD 103,439,000 in 2023 to HKD 82,665,000 in 2024, a reduction of approximately 20% [149]. Impairment and Asset Management - The total asset impairment for the agricultural business segment amounted to approximately HKD 463 million as of June 30, 2024 [135]. - The total asset impairment for the fast-moving consumer goods (FMCG) trading business segment was approximately HKD 348 million as of June 30, 2024 [138]. - During the year, the agricultural business segment continued to record losses, increasing the risk of asset impairment [135]. - The FMCG trading business segment experienced a decline in revenue and continued to record losses, raising concerns about asset impairment [138]. - Impairment losses recognized during the year included approximately HKD 55 million for fixed assets and HKD 11 million for right-of-use assets [135]. - The company assessed the recoverable amount of cash-generating units based on value in use, requiring significant management judgment regarding future assumptions [135]. - The company evaluated the historical accuracy of forecasts by comparing past models with actual performance in the agricultural business segment [135]. - The company has engaged external valuation experts to assess the appropriateness of discount rates used in impairment evaluations [138]. Compliance with Financial Standards - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards, reflecting a true and fair view of the group's financial position as of June 30, 2024 [130]. - The independent auditor's report highlighted key audit matters, including asset impairment assessments for both agricultural and FMCG segments [134]. - The group has adopted new and revised Hong Kong Financial Reporting Standards, which have no significant impact on the financial position and performance of the group [161]. - The group has not early adopted new standards and interpretations that are issued but not yet effective, with the expected application of these standards not having a significant impact on the consolidated financial statements in the foreseeable future [163]. - The new Hong Kong Financial Reporting Standard No. 18, effective from January 1, 2027, will significantly change the presentation of financial statements, focusing on the income statement and requiring enhanced disclosures of performance metrics defined by management [164].