Financial Performance - For the fiscal year ending June 30, 2024, the company reported a revenue of HKD 441,951,000, a slight increase from HKD 440,600,000 in the previous year, representing a growth of 0.3%[1] - The gross loss for the year was HKD 196,448,000, compared to a loss of HKD 125,596,000 in the previous year, indicating a deterioration in performance[2] - The company reported a basic loss per share of HKD 1.74, compared to HKD 1.18 in the previous year, indicating a worsening loss per share[1] - The company’s total comprehensive loss for the year was HKD (196,448) thousand, compared to HKD (125,596) thousand in the previous year, reflecting a worsening financial position[20] - The company reported a loss of approximately HKD 196,448,000 for the current year, compared to a loss of HKD 125,596,000 in the previous year[29] Assets and Liabilities - Total assets decreased to HKD 869,556,000 from HKD 1,073,509,000, reflecting a decline of approximately 19% year-over-year[3] - The company’s total liabilities decreased to HKD 82,665,000 from HKD 103,439,000, a reduction of approximately 20%[4] - The total equity attributable to the owners of the company was HKD 786,891,000, down from HKD 970,070,000, marking a decline of approximately 19%[4] - The company’s bank borrowings were approximately HKD 100,000 as of June 30, 2024, significantly reduced from HKD 10.5 million on June 30, 2023[69] Revenue Breakdown - Revenue from consumer goods sales decreased to HKD 266,463,000 in 2024 from HKD 273,726,000 in 2023, reflecting a decline of about 2.3%[15] - Revenue from agricultural products sales increased to HKD 172,500,000 in 2024, up from HKD 163,635,000 in 2023, showing a growth of approximately 5.3%[15] - Revenue from external customers for the Fast-Moving Consumer Goods (FMCG) segment was HKD 266,463,000, while the Agricultural Products segment generated HKD 172,500,000, totaling HKD 441,951,000[18] Operational Changes and Strategies - The company plans to continue focusing on its two reportable segments, FMCG and Agricultural Products, to optimize resource allocation and market strategies[18] - The group is actively seeking new types of fertilizers from overseas suppliers to strengthen its upstream farming business and ensure reliable and diversified quality fertilizer supply for its Jiangxi agricultural base[41] - The group has been reducing operations in its securities brokerage and margin financing business due to weak capital market activities, with plans to continue this process until complete withdrawal from the business unit[40] Market Conditions and Challenges - The company continues to face challenges in its traditional import product trade due to a competitive domestic market and a weakening RMB[39] - Retail sales growth in the second half of the fiscal year was only between 2% to 3%, indicating consumer reluctance to spend amid economic downturns[39] - The group faces significant risks from economic and financial market volatility, which could adversely affect its operations and financial performance[56] Financial Management and Governance - The group emphasizes environmental policies and has implemented various measures to conserve resources and promote recycling in its operations[62] - The group is committed to compliance with relevant laws and regulations, with no significant violations reported during the fiscal year 2023/2024[64] - The audit committee has reviewed the consolidated financial statements for the year ending June 30, 2024, confirming consistency with the figures audited by the external auditor[89] Future Outlook - The group will cautiously pursue new developments in agricultural business units based on market demand and financial feasibility[83] - The company continues to improve its product mix and procurement strategies to enhance competitiveness and profitability in a challenging economic environment[49] - The group plans to enhance and expand its procurement network, sourcing more suitable specialty products from international and domestic suppliers[82]

Financial Performance - Revenue for the six months ended December 31, 2023, was HKD 241,559,000, a decrease of 1.9% from HKD 244,474,000 in the same period last year[3] - Gross profit increased to HKD 19,451,000, up 16.2% from HKD 16,744,000 year-on-year[3] - Operating loss narrowed to HKD 42,653,000, compared to a loss of HKD 54,209,000 in the previous year, reflecting improved operational efficiency[3] - Loss for the period was HKD 42,830,000, down from HKD 54,406,000 in the same period last year, indicating a 21.4% improvement[4] - Total revenue for the six months ended December 31, 2023, was HKD 241,559,000, a decrease of 1.9% from HKD 244,474,000 in the same period of 2022[18] - The group reported a total loss of HKD 42,830,000 for the six months ended December 31, 2023, compared to a loss of HKD 54,406,000 for the same period in 2022, indicating an improvement of about 21.4%[29] - The cost of goods sold for the six months ended December 31, 2023, was HKD 217,010,000, slightly lower than HKD 221,907,000 for the same period in 2022, showing a reduction of about 2.2%[27] - The net loss decreased mainly due to a gross margin increase of about 1.3% and a reduction in administrative expenses by about 7.2%[50] Assets and Liabilities - Total assets decreased to HKD 1,023,129,000 from HKD 1,073,509,000, a decline of 4.7%[6] - Current assets increased to HKD 612,182,000, up from HKD 591,778,000, reflecting a 3.1% growth[6] - The company reported a net asset value of HKD 928,213,000, down from HKD 970,070,000, a decrease of 4.3%[7] - The group’s classified assets as of December 31, 2023, totaled HKD 865,422,000, down from HKD 922,753,000 as of June 30, 2023, reflecting a decrease of approximately 6.2%[24] - The group’s total classified assets included HKD 69,042,000 in current assets as of December 31, 2023, compared to HKD 4,877,000 as of June 30, 2023, showing a substantial increase[31] - The group's total assets were approximately HKD 1,023.1 million, with total liabilities of about HKD 94.9 million, leading to a capital-to-debt ratio of approximately 0.6%[64] Cash Flow and Investments - Operating cash flow for the six months ended December 31, 2023, was a net outflow of HKD 35,449,000, compared to a net outflow of HKD 14,424,000 in the same period of 2022, indicating a significant increase in cash consumption[9] - The company reported a cash and cash equivalents balance of HKD 86,933,000 as of December 31, 2023, down from HKD 123,735,000 at the end of the previous year[9] - The net cash used in investing activities for the six months was HKD 7,456,000, a decrease from HKD 46,106,000 in the same period of 2022, reflecting reduced capital expenditures[9] - The company repaid bank borrowings amounting to HKD 9,689,000 during the period, compared to HKD 22,112,000 in the same period of 2022[9] - The group recorded a fair value gain of approximately HKD 1.3 million and interest income of about HKD 2.2 million from its investment in convertible bonds during the reporting period[59] Business Operations and Strategy - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[3] - The financial outlook remains cautious, with ongoing efforts to improve profitability and operational efficiency in the upcoming periods[3] - The company operates in three main business segments: fast-moving consumer goods trading, agricultural products trading, and other businesses including securities brokerage and margin financing[44] - The fast-moving consumer goods trade business contributed approximately 61% to the group's total revenue, with packaging food being the most significant category[53] - The group continues to develop domestic fresh agricultural product trade and upstream farming businesses to mitigate the negative impact of declining import product trade contributions[52] - The group has invested significantly in R&D to enhance agricultural skills, including establishing agricultural research and testing centers[56] - The group plans to focus on core business development, expanding procurement networks for fast-moving consumer goods, and improving upstream farming operations[58] Employee and Operational Costs - The group’s employee costs (excluding directors' remuneration) for the six months ended December 31, 2023, amounted to HKD 11,473,000, an increase from HKD 10,649,000 in the same period of 2022, reflecting an increase of about 7.8%[27] - Sales and distribution expenses rose by approximately 28.8% to about HKD 19.9 million, accounting for approximately 8.2% of revenue compared to 6.3% in the same period last year[48] - Administrative expenses decreased by about 7.2% to approximately HKD 29.9 million, mainly due to cost-cutting measures and the reduction of loss-making businesses[49] - Other operating expenses decreased from approximately HKD 14.4 million to about HKD 5.7 million, reflecting reduced impairment losses on receivables[49] Shareholder and Governance Information - Major shareholders include Best Global with 13,753,945 shares (13.09%) and Glazy Target with 15,053,003 shares (14.33%) as of December 31, 2023[75] - The company has a stock option plan in place, with 9,363,480 options available for grant, representing about 8.9% of the issued shares as of December 31, 2023[70] - The company has adopted the Corporate Governance Code and confirmed compliance with the standards set forth in the Standard Code for securities trading by directors for the six months ended December 31, 2023[82] - The interim report for the six months ended December 31, 2023, was reviewed by the company's audit committee but not audited by external auditors[83]

Financial Performance - Revenue for the six months ended December 31, 2023, was HKD 4,241.6 million, a decrease of 1.0% compared to HKD 4,244.7 million in the same period last year[2]. - Gross profit for the same period was HKD 19.5 million, representing an increase of 16.2% from HKD 16.7 million year-on-year[2]. - The operating loss for the period was HKD 42.7 million, a reduction of 21.4% compared to a loss of HKD 54.2 million in the previous year[3]. - The basic loss per share for the period was HKD 0.408, improved from HKD 0.518 in the same period last year[2]. - Total comprehensive loss for the period was HKD 41.9 million, compared to HKD 62.5 million in the same period last year[3]. - Other income for the period was HKD 5.4 million, down from HKD 6.2 million year-on-year[2]. - Administrative expenses decreased to HKD 29.9 million from HKD 32.2 million, reflecting a 10.2% reduction[2]. - The company reported a fair value loss of HKD 12.1 million due to biological transformation, an improvement from HKD 15.1 million in the previous year[2]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to HKD 1,023,129,000, a decrease from HKD 1,073,509,000 in June 30, 2023, representing a decline of approximately 4.7%[5]. - Total liabilities increased to HKD 94,916,000 from HKD 103,439,000, indicating a reduction of about 8.5%[7]. - Total equity decreased to HKD 928,213,000 from HKD 970,070,000, reflecting a decline of approximately 4.3%[7]. - Current assets totaled HKD 612,182,000, up from HKD 591,778,000, showing an increase of about 3.1%[5]. - Cash and cash equivalents decreased to HKD 87,078,000 from HKD 121,830,000, a decline of approximately 28.5%[5]. - Inventory increased to HKD 108,601,000 from HKD 105,317,000, representing a growth of about 2.2%[5]. - Accounts receivable rose to HKD 230,078,000 from HKD 202,298,000, indicating an increase of approximately 13.7%[5]. Cash Flow and Expenses - The operating cash flow for the six months ending December 31, 2023, was a net outflow of HKD 35,449,000, compared to a net outflow of HKD 14,424,000 for the same period in 2022, indicating a significant increase in cash burn[10]. - The cash flow from investing activities showed a net inflow of HKD 7,456,000, a decrease from HKD 46,106,000 in the previous year, reflecting reduced investment returns[10]. - The cash flow from financing activities resulted in a net outflow of HKD 5,583,000, compared to a net outflow of HKD 3,625,000 in the prior period, indicating increased financing costs[10]. - The company reported a significant increase in operating expenses, with a total of HKD 35,412,000 for the current period, compared to HKD 14,324,000 previously, reflecting higher operational costs[10]. Market and Strategic Focus - The company is focusing on expanding its market presence and enhancing product offerings in response to changing consumer demands[2]. - Future outlook indicates a cautious approach due to market volatility, with a commitment to cost control and operational efficiency[3]. - The group continues to develop domestic product trading and upstream farming businesses to counter the challenges faced by imported products[54]. - The group is focusing on developing domestic fresh agricultural product trading to mitigate the negative impacts of import product trading[62]. - The group has established an agricultural science industrial park to promote the development of its upstream farming business[68]. Segment Performance - Revenue from consumer goods sales was HKD 147,395,000, down from HKD 152,754,000 year-over-year, indicating a decrease of about 3.4%[19]. - Revenue from agricultural products sales increased to HKD 92,664,000 from HKD 90,028,000, reflecting a growth of approximately 2.9%[19]. - The company reported a loss from the fast-moving consumer goods trade business of HKD 6,532,000 for the period[25]. - The total loss across all categories was HKD 37,431,000, with the agricultural products business contributing a loss of HKD 28,957,000[25]. Governance and Management - The company has adhered to the Corporate Governance Code as per the Hong Kong Stock Exchange regulations, with a noted deviation from rule C.2.1[98]. - The company’s chairman and CEO roles are held by the same individual, Lin Guo Xing, who has over 30 years of experience in the consumer goods industry[99]. - The board believes that having a single individual in both roles can benefit the company and its shareholders by effectively balancing power distribution[100]. Future Plans and Investments - The company plans to utilize HKD 207.3 million in the next six months for various projects, including HKD 80 million for financial resources and future expansion[84]. - Upgrading Shanghai cold storage and logistics facilities is budgeted at HKD 12 million, expected to be completed by December 31, 2021[84]. - A total of HKD 14 million is allocated for renovations and equipment upgrades at the Jiangxi fruit processing center, to be completed by June 30, 2022[84]. - The establishment of a new processing agricultural product center in Dongguan is budgeted at HKD 34 million, with a completion target of December 31, 2022[84].

Financial Performance - For the fiscal year 2022/23, the company's revenue decreased by approximately 12.1% to around HKD 440.6 million, primarily due to declines in traditional trade businesses and upstream farming operations [7]. - The net loss for the fiscal year was approximately HKD 125.6 million, an improvement from the previous year's net loss of HKD 209.2 million, attributed to increased gross margins and reduced operating expenses [7]. - The group's revenue decreased by approximately 12.1% compared to the previous fiscal year, while gross profit margin significantly increased due to reduced discounts and promotional pricing strategies [19]. - Total revenue for the fiscal year was approximately HKD 440.6 million, a decrease of about 12.1% from HKD 501.2 million in the previous fiscal year [22]. - Gross profit increased to HKD 31.5 million, up 58.5% from HKD 19.8 million in the previous year [177]. - Operating loss for the year was HKD 125.2 million, an improvement from a loss of HKD 208.9 million in 2022 [177]. - Net loss for the year was HKD 125.6 million, compared to a net loss of HKD 209.2 million in the prior year, reflecting a 40% reduction [177]. - Total comprehensive loss for the year was HKD 138.3 million, down from HKD 210.2 million in the previous year [179]. Business Challenges - The fast-moving consumer goods trade business faced significant challenges, with revenue declines driven by weak market demand and intensified domestic brand competition [8]. - The company faced challenges such as supply chain disruptions and increased procurement costs due to inflation, impacting overall business performance [28]. - Agricultural trading business revenue significantly decreased in the fiscal year 2022/23, particularly in imported agricultural products, due to the impact of COVID-19 and rising procurement costs [31]. - The unemployment rate for the 16 to 24 age group rose to a new high of 21.3% in June 2023, indicating ongoing economic challenges in China [19]. Strategic Decisions - The company plans to exit its securities brokerage and margin financing businesses due to deteriorating capital market conditions and slow recovery expectations [11]. - The company has terminated its travel retail business operations, as the number of mainland tourists and their purchasing power remain significantly below pre-pandemic levels [11]. - The company aims to reduce operational expenses by ceasing unprofitable business segments, thereby improving overall financial health [11]. - The group plans to exit its securities brokerage and margin financing business due to a revenue decline of about 21.2% in the previous fiscal year, driven by adverse capital market conditions [20]. Operational Improvements - The new agricultural product processing and storage center in Dongguan has commenced operations, enhancing operational capacity and reducing transportation costs [9]. - The company is focusing on strengthening its procurement network and relationships with existing suppliers to improve business operations [8]. - The group will focus on strengthening relationships with existing suppliers and enhancing its procurement network to improve operational efficiency in its core businesses [13]. - The company has developed an agricultural science industrial park to promote upstream farming operations, including a fruit processing center that enhances product quality assurance [11]. Financial Management - The board decided not to recommend a final dividend for the year ending June 30, 2023, to maintain sufficient cash reserves due to unpredictable economic conditions [12]. - The group has a total asset of approximately HKD 1,073,500,000 as of June 30, 2023, down from HKD 1,224,600,000 as of June 30, 2022 [53]. - The group's current assets are approximately HKD 591,800,000, a decrease from HKD 767,700,000 in the previous year [53]. - The company reported a reserve of approximately HKD 814,939,000 as of June 30, 2023, down from HKD 990,291,000 in 2022, indicating a decrease of about 17.7% [87]. Governance and Management - The company has established a strong governance framework with independent non-executive directors overseeing key committees [71][72][73]. - The board of directors consists of four executive directors and three independent non-executive directors, ensuring a balanced governance structure [121]. - The company has maintained its internal financial operations and administrative management under the supervision of its general manager, ensuring effective oversight [76]. - The company has a history of over 20 years of experience in corporate finance and accounting, which supports its strategic decision-making processes [78]. Future Outlook - The company anticipates a cautious approach to future business development due to the uncertain global economic outlook [64]. - The company plans to implement flexible pricing strategies and streamline its product portfolio to maintain revenue and gross margin stability in the face of rising import costs and intense competition in the Chinese consumer market [29]. - The company is cautiously developing agricultural tourism facilities based on the pace of market recovery due to uncertainties from the pandemic and macroeconomic environment [33]. - The company aims to leverage its extensive experience in the industry to navigate future challenges and capitalize on growth opportunities [66].

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） （股份代號：00197） 截 至 二 零 二 三 年 六 月 三 十 日 止 年 度 全 年 業 績 公 告 亨泰消費品集團有限公司（「本公司」）董事（「董事」）會（「董事會」）欣然宣佈， 本公司及其附屬公司（統稱「本集團」）截至二零二三年六月三十日止年度 的經審核綜合全年業績連同上年度的比較數字如下： 綜合損益表 截至二零二三年六月三十日止年度 二零二三年 二零二二年 附註 千港元 千港元 收入 3 440,600 501,218 銷售成本 (409,124) (481,374) 毛利 31,476 19,844 因生物轉化引致公平值變動 (41,896) (31,375) 其他收益及收入 10,073 10,194 銷售及分銷開支 (30,532) ( ...

Financial Performance - Revenue for the six months ended December 31, 2022, was HKD 244,474,000, a decrease of 11.2% from HKD 275,231,000 in the same period last year[11] - Gross profit increased to HKD 16,744,000, compared to HKD 11,267,000, reflecting a gross margin improvement[11] - Operating loss for the period was HKD 54,209,000, slightly improved from a loss of HKD 55,998,000 year-on-year[11] - Loss attributable to owners of the company was HKD 54,406,000, compared to HKD 63,426,000 in the previous year, indicating a reduction in losses[11] - The total comprehensive income for the period was a loss of HKD 62,549,000, compared to a loss of HKD 59,854,000 in the previous period, reflecting a slight increase in losses[15] - The group reported a total loss of HKD 54,406,000 for the period, slightly improved from a loss of HKD 55,845,000 in the previous year[33] - The net loss decreased mainly due to a gross margin increase of approximately 2.7% and a reduction in sales and distribution expenses by about 30.4%, despite an 11.2% decline in revenue[63] Assets and Liabilities - Total assets decreased to HKD 1,155,912,000 from HKD 1,224,556,000, reflecting a decline in overall asset value[13] - Non-current assets increased to HKD 501,564,000 from HKD 456,843,000, indicating investment in long-term assets[13] - Current assets decreased to HKD 654,348,000 from HKD 767,713,000, primarily due to changes in receivables and inventory[13] - The total liabilities as of December 31, 2022, were approximately HKD 110.1 million, down from HKD 116.2 million as of June 30, 2022, representing a decrease of about 5.3%[75] - The company’s total liabilities decreased from HKD 2,390,451,000 to HKD 2,390,451,000, indicating stability in its financial obligations[15] Cash Flow and Investments - The company reported a net cash outflow from operating activities of HKD 14,424,000 for the six months ended December 31, 2022, compared to HKD 30,467,000 for the same period in 2021, indicating an improvement of approximately 52%[16] - The company reported a significant increase in cash inflow from investing activities, totaling HKD 46,106,000, compared to an outflow of HKD 46,397,000 in the previous period[16] - The company’s cash and cash equivalents increased by HKD 28,057,000 during the period, contrasting with a decrease of HKD 81,061,000 in the same period last year[16] - The company’s cash and cash equivalents at the end of the reporting period were HKD 123,735,000, down from HKD 143,396,000 in the previous year[16] Revenue Breakdown - Revenue from consumer goods sales for the six months ended December 31, 2022, is HKD 152,754,000, a decrease of 1% from HKD 154,986,000 in the same period of 2021[25] - Revenue from agricultural products sales decreased by 23.5% to HKD 90,028,000 from HKD 117,615,000 year-on-year[25] - The fast-moving consumer goods trade business contributed approximately 62% to total revenue, with packaging food being the most significant category at about 76%[65] - The agricultural products trade business faced severe challenges due to supply chain disruptions, resulting in a significant decline in sales volume[66] Shareholder Information - Major shareholders include Mr. Lin and Ms. Li, each holding approximately 13.09% of the issued shares, while Mr. Chan holds approximately 14.33%[82] - As of December 31, 2022, Best Global holds 275,078,914 shares, representing 13.09% of the issued shares[85] - Glazy Target owns 301,060,073 shares, accounting for 14.33% of the total issued shares[85] - Smart Empire Group Limited, controlled by Mr. Teng, possesses 228,711,000 shares, which is 10.88% of the issued shares[85] Corporate Governance - The company has complied with the Corporate Governance Code, except for the separation of roles between the Chairman and CEO, which is held by Mr. Lin since March 2012[89] - The company adopted a revised set of articles of association to align with core shareholder protection standards on December 29, 2022[90] - The mid-term report for the six months ending December 31, 2022, was reviewed by the audit committee but not audited by external auditors[92] Operational Developments - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[11] - A new agricultural food processing and storage center in Dongguan has commenced operations, enhancing operational capacity and reducing transportation costs[67] - The group is cautiously optimistic about the upstream farming business, despite a revenue decrease of about 5.0% due to the pandemic and weak market demand[67] - The group is implementing cost-saving measures to improve profitability while facing rising purchasing and transportation costs[65] Employee and Administrative Costs - The group’s employee costs, excluding directors' remuneration, totaled HKD 10,649,000, a decrease from HKD 11,297,000 in the previous year, representing a reduction of approximately 5.7%[38] - Administrative expenses increased by approximately 5.6% to about HKD 32,200,000, primarily due to inflation and costs associated with setting up the Jiangxi Agricultural Research Center[62]

Financial Performance - Revenue for the fiscal year 2021/22 decreased by approximately 3.7% to around HKD 501.2 million[8] - Net loss for the fiscal year 2021/22 was approximately HKD 209.2 million, an improvement from a net loss of HKD 247.2 million in the previous fiscal year[8] - The group reported a revenue decline of approximately 3.7% compared to the previous fiscal year, while maintaining stable gross margins through reduced discounts for loyal customers[20] - The total revenue for the fiscal year was approximately HKD 501,200,000, a decrease of about 3.7% compared to HKD 520,300,000 in the previous fiscal year[23] - The company reported a total distributable reserve of approximately HKD 990,291,000 as of June 30, 2022, down from HKD 1,237,912,000 in 2021, indicating a decrease of about 20%[99] - The company reported a loss of HKD 209,156,000 for the year ended June 30, 2022, compared to a loss of HKD 247,220,000 in the previous year, representing a 15.4% improvement in losses[180] - The company's total assets decreased to HKD 1,224,556,000 from HKD 1,407,545,000, reflecting a decline of approximately 12.9%[182] Gross Profit and Margins - The gross profit margin improved due to a reduction in sales discounts and promotions during the pandemic, helping to stabilize pricing strategies[7] - The gross profit margin increased from approximately 3.4% in the previous fiscal year to 4.0%, primarily due to reduced discount amounts and the elimination of unprofitable products[24] - Gross profit increased to HKD 19,844,000, up 13.3% from HKD 17,508,000 year-on-year[179] Business Segments and Operations - The packaged food category contributed approximately 78% to the fast-moving consumer goods trade business[10] - The agricultural business saw revenue growth due to advancements in agricultural technology and distribution channels[11] - The fast-moving consumer goods (FMCG) segment reported a revenue contribution of approximately HKD 290,500,000, a decrease of about 7.2% compared to the previous fiscal year[38] - The agricultural business generated revenue of HKD 206.6 million, up approximately 2.9% from HKD 200.8 million in the previous fiscal year, driven by higher selling prices and improved yields from upstream farming operations[40] - The upstream farming business revenue increased by approximately 20.3% to HKD 15.7 million from HKD 13.1 million in the previous fiscal year, attributed to better distribution channels and agricultural technology[43] Investment and Acquisitions - The acquisition of a 17.5% stake in First Bullion Holdings Inc. was completed for approximately HKD 23.8 million, enhancing the company's investment portfolio[8] - The acquisition of a 17.5% stake in First Bullion for approximately HKD 23.8 million was completed, but the fair value of this investment has decreased to about HKD 9.9 million, resulting in an impairment loss of approximately HKD 13.9 million for the fiscal year[48] - The group continues to explore suitable investment opportunities to strengthen its portfolio amid challenging market conditions[7] Challenges and Risks - The travel retail business faced unprecedented challenges, with inbound visitors from mainland China to Hong Kong dropping to less than 70,000 in 2021, compared to approximately 43.8 million in 2019[12] - The group remains pessimistic about the outlook for travel retail due to ongoing pandemic-related restrictions and uncertainty regarding cross-border travel for mainland Chinese tourists[12] - The group continues to face a challenging operating environment due to geopolitical tensions and economic slowdowns affecting consumer confidence and purchasing power in China[31] - Increased competition in the domestic market may weaken the group's competitive edge, especially with the rise of local product quality and cross-border online shopping[51] - Supply chain risks exist due to reliance on overseas suppliers, with potential disruptions from global events affecting inventory replenishment[53] Cost Management and Financial Stability - The company plans to adopt a more cautious approach in future developments while continuing to explore investment opportunities to diversify its portfolio[22] - The company will implement cost-saving measures while ensuring financial stability to cope with unexpected adversities[22] - The group will adopt a more cautious approach in light of economic uncertainties and rising procurement costs, including ceasing sales to unreliable customers and adjusting prices accordingly[14] - The company is committed to cost reduction strategies to ensure financial stability amid various uncertainties[77] Governance and Corporate Structure - The company has a strong governance structure with experienced directors overseeing financial and strategic decisions[90] - The board consists of three independent non-executive directors, with at least one possessing appropriate professional qualifications or relevant financial management expertise[136] - The company has established an investor relations policy to handle significant information and communicate with the financial market and shareholders[154] - The company is committed to maintaining good corporate governance practices as a key element of risk management during its growth and expansion[130] Impairment and Asset Management - Impairment losses recorded during the fiscal year amounted to approximately HKD 77,400,000, with goodwill accounting for HKD 10,600,000[29] - The group reported an impairment loss of approximately HKD 564.1 million for agricultural business assets as of June 30, 2022[163] - Impairment losses for fixed assets, intangible assets, and prepayments amounted to approximately HKD 4.5 million, HKD 10.7 million, and HKD 2.1 million respectively during the year[163] Future Outlook - The company is cautiously optimistic about the development of its agricultural tourism business despite challenges posed by the pandemic[11] - The group remains cautiously optimistic about the long-term development of the digital asset market despite significant declines in the first half of 2022[12] - The company plans to invest cautiously in new business opportunities to reduce concentration risk, especially given the uncertain outlook for traditional trade[77]

Financial Performance - Revenue for the six months ended December 31, 2021, was HKD 275,231,000, a decrease of 1% from HKD 280,311,000 in the same period last year[2]. - Gross profit for the same period was HKD 11,267,000, down 15% from HKD 13,194,000 year-on-year[2]. - Operating loss increased to HKD 55,998,000 compared to HKD 40,690,000 in the previous year, reflecting a 37% rise in losses[2]. - The company reported a net loss of HKD 55,845,000, compared to a loss of HKD 40,838,000 in the prior year, marking a 37% increase in net losses[3]. - The basic loss per share was HKD 3.34, compared to HKD 2.18 in the previous year, reflecting a 53% increase in loss per share[2]. - The group reported a total loss of HKD 55,845,000 for the six months ended December 31, 2021, compared to a loss of HKD 40,838,000 for the same period in 2020[23]. - The group’s gross profit for the six months ended December 31, 2021, was HKD 20,142,000, down from HKD 23,561,000 in the previous year[23]. - The net loss increased primarily due to a decrease in revenue of about 1.8%, a reduction in gross margin of about 0.6%, and a decrease in other income and revenue of approximately HKD 15.9 million[46]. Assets and Liabilities - Total assets decreased to HKD 1,382,601,000 from HKD 1,407,545,000, a decline of 2%[4]. - Non-current assets decreased to HKD 530,522,000 from HKD 628,530,000, a drop of 16%[4]. - Current assets increased to HKD 852,079,000 from HKD 779,015,000, an increase of 9%[5]. - The company's equity attributable to owners decreased to HKD 1,265,691,000 from HKD 1,301,759,000, a decline of 3%[5]. - The company's trade receivables amounted to HKD 302,769,000, an increase from HKD 273,943,000 as of June 30, 2021, representing a growth of approximately 10.5%[31]. - The company's trade payables were HKD 70,685,000 as of December 31, 2021, compared to HKD 66,452,000 as of June 30, 2021, showing an increase of approximately 6.5%[34]. - The group's total assets were approximately HKD 1,382.6 million as of December 31, 2021, down from HKD 1,407.5 million on June 30, 2021, with total liabilities at approximately HKD 116.9 million[59]. Cash Flow and Investments - Operating cash flow before changes in working capital showed a loss of HKD 19,118,000, compared to a loss of HKD 11,273,000 in the previous year, indicating a deterioration of approximately 69%[6]. - Total cash used in operating activities was HKD 30,754,000, down from HKD 50,263,000, representing a 39% improvement year-over-year[6]. - The net cash used in investing activities was HKD 46,397,000, significantly higher than HKD 9,385,000 in the prior year, indicating increased investment outflows[6]. - The cash balance as of December 31 was HKD 143,396,000, down from HKD 289,942,000, indicating a significant reduction in liquidity[6]. - The company completed the acquisition of a 17.5% stake in First Bullion Holdings Inc. for approximately HKD 23,800,000, enhancing its investment portfolio in the digital asset trading sector[53]. - The fair value of the investment in China Smart Health's convertible bonds was approximately HKD 72.3 million as of December 31, 2021, down from HKD 85 million on June 30, 2021, representing a loss of about HKD 3.5 million during the period[55]. Revenue Breakdown - Revenue from consumer goods sales decreased to HKD 154,986,000 from HKD 173,889,000, a decline of approximately 11%[15]. - Revenue from agricultural products increased to HKD 117,615,000, up from HKD 103,303,000, reflecting a growth of about 14%[15]. - The fast-moving consumer goods trading business contributed approximately 56% to the group's total revenue during the period, with packaging food accounting for 77% of this segment[48]. - The agricultural products business saw a revenue increase of about 13.9%, primarily due to rising prices and increased production from upstream farming operations[49]. - Revenue from upstream farming operations increased by approximately 26.4%, driven by expanded cultivated land and higher selling prices[50]. - Logistics services revenue decreased by about 73.5% to HKD 500,000, reflecting the impact of pandemic-related restrictions in China[51]. Operational Changes and Future Outlook - The company decided to scale down unprofitable businesses, such as logistics services and travel retail, due to the bleak outlook for the tourism industry in Hong Kong[47]. - The company terminated most logistics operations to reduce significant administrative expenses[44]. - The company anticipates a challenging and uncertain overall operating environment due to ongoing pandemic impacts and geopolitical tensions, prompting a cautious approach to future investments[54]. - The pandemic has led to significant supply chain challenges, including increased procurement costs and difficulties in replenishing inventory, affecting the gross margin of the fast-moving consumer goods segment[48]. - The company is actively developing a new agricultural product processing and storage facility in Dongguan, China, to enhance its local fresh agricultural product trade operations[49]. Corporate Governance - The group did not recommend any interim dividend for the six months ended December 31, 2021, consistent with the previous year[24]. - The company has adhered to the Corporate Governance Code principles and complied with all applicable provisions, except for a deviation regarding the separation of the roles of Chairman and CEO[75][76]. - The company has adopted the "Standard Code" as the code of conduct for securities trading by directors[77]. - All directors confirmed full compliance with the "Standard Code" for the six months ending December 31, 2021[77]. - The interim report for the six months ending December 31, 2021, has been reviewed by the company's audit committee but not audited by external auditors[78].

Financial Performance - Revenue for the fiscal year 2020/21 decreased by approximately 4.0% to about HKD 520.3 million[7] - Net loss for the fiscal year 2020/21 was approximately HKD 247.2 million, an improvement from a net loss of about HKD 318.4 million in the previous fiscal year[7] - The group reported total revenue of approximately HKD 520.3 million for the fiscal year, a decrease of about 4.0% compared to HKD 541.9 million in the previous fiscal year[22] - The gross profit margin declined from approximately 5.9% to 3.4%, primarily due to aggressive pricing strategies and increased competition from local brands[23] - The group reported a revenue increase of approximately 21.8% in the second half of the fiscal year, offsetting an 18.7% decline in the first half[18] - The operating loss for the year was HKD 249,681,000, compared to a loss of HKD 318,648,000 in 2020, indicating a 21.7% improvement[167] - The net loss for the year was HKD 247,220,000, a reduction of 22.3% from HKD 318,350,000 in the prior year[168] - Total revenue for the year ended June 30, 2021, was HKD 520,254,000, a decrease of 4.1% from HKD 541,915,000 in 2020[167] Business Operations and Strategies - The group invested HKD 60 million in the securities brokerage business to expand margin financing services, resulting in increased revenue from new margin client accounts[7] - The group plans to complete a fruit processing center by December 31, 2021, which will provide comprehensive services from cleaning to storage for agricultural products[9] - The contribution of packaged food to the fast-moving consumer goods trade business remained at about 70%[8] - The logistics business experienced a significant revenue decline due to the pandemic and high operational costs, leading to increased outsourcing of logistics services[10] - The group adopted a more aggressive pricing strategy, including special promotions and discounts, to maintain competitiveness, impacting gross margins[6] - The group is cautiously optimistic about the development of its upstream farming business, despite challenges from the pandemic and adverse weather[9] - The group continues to expand its local procurement network to stabilize product supply amid global procurement challenges[8] - The group is implementing various cost-cutting measures in response to the significant decline in revenue from the travel retail business due to reduced tourist numbers[7] - The group plans to expand its food processing and warehousing operations in Southern China due to limited capacity at existing facilities[13] - The group will implement cost reduction measures and suspend other investments in response to uncertainties in the securities brokerage and retail travel businesses[14] Investment and Financial Management - The group is exploring investment opportunities in a cryptocurrency investment company, while maintaining a conservative approach to non-core business evaluations[14] - Securities brokerage and margin financing revenue increased by approximately 102.8% compared to the previous fiscal year, primarily due to interest income from margin financing[35] - The net proceeds from the rights issue completed on January 11, 2017, amounted to approximately HKD 207.3 million, with HKD 80 million allocated for securities brokerage and margin financing business[35] - The group has decided to change the intended use of the remaining proceeds of approximately HKD 127.3 million to further enhance its existing core business[36] - The group maintained a stable financial condition, with interest-bearing borrowings of approximately HKD 15,700,000 as of June 30, 2021, down from HKD 20,400,000 a year earlier[52] Challenges and Risks - The ongoing pandemic remains a significant threat to the global economy, influencing the group's operational strategies and risk management[21] - The group faced significant challenges in maintaining supply chain stability due to global disruptions caused by the pandemic, impacting its fast-moving consumer goods and agricultural trading businesses[19] - The travel retail business faced significant challenges with no signs of recovery, heavily impacted by the decline in mainland Chinese tourist arrivals to Hong Kong[36] - Increased market competition in the domestic industry may weaken the group's competitiveness, particularly if local product quality improves and cross-border online shopping penetration increases[39] - Political risks, including rising global protectionism, could severely impact the group's trade business and increase import costs[40] - The group is exposed to various financial risks, including interest rate risk and currency risk, and actively monitors these risks to mitigate potential adverse impacts[43] Corporate Governance and Compliance - The company emphasizes corporate governance as a collective responsibility of the board, including the review of compliance with legal and regulatory requirements[120] - The independent auditor, RSM Hong Kong, will be proposed for reappointment at the upcoming annual general meeting[110] - The company has established appropriate directors and officers liability insurance to protect its directors and senior management from legal actions arising from corporate activities[110] - The company has applied the principles of the Corporate Governance Code as per the Listing Rules, with a deviation noted in code provision A.2.1 regarding the roles of the chairman and CEO[111] - The board consists of three independent non-executive directors, with at least one possessing appropriate professional qualifications or relevant financial management expertise[117] Impairment and Asset Management - The company recognized an impairment loss of approximately HKD 8,500,000 for goodwill, reducing its carrying amount to the recoverable amount[143] - The carrying amount of agricultural business assets was approximately HKD 543,300,000 before recognizing an impairment loss during the year[145] - An impairment loss of about HKD 4,800,000 was recorded for the right-of-use assets in the agricultural segment[145] - The logistics services business had a carrying amount of approximately HKD 142,600,000 before impairment losses were recognized during the year[148] - Impairment losses for fixed assets, right-of-use assets, and prepayments in the logistics segment were approximately HKD 14,700,000, HKD 19,000,000, and HKD 200,000 respectively[148] Future Outlook and Plans - The group plans to adopt a more cautious approach in future developments while continuing to explore investment opportunities to diversify its portfolio[21] - The company is actively working on a project to build a fruit processing center and develop nearby agricultural tourism, with the processing center expected to be operational by mid-2022[31] - The company plans to establish an agricultural research and testing center in Jiangxi with an investment of HKD 6 million, expected to be completed by May 31, 2022[59] - The company has allocated HKD 10 million for promotional and marketing activities, with HKD 0.3 million already spent[59] Employee and Management Structure - The company has approximately 320 employees operating in China, Hong Kong, and Macau as of June 30, 2021[60] - The remuneration policy is based on employees' experience, responsibility level, contribution, and work efficiency[101] - The company has adopted a share option plan and a share award plan as incentives for directors and eligible employees[101] - The company’s management is responsible for daily operations, with significant transactions requiring board approval[119]

Financial Performance - Revenue for the six months ended December 31, 2020, was HKD 280,311,000, a decrease of 18.7% compared to HKD 344,866,000 in the same period last year[2] - Gross profit for the same period was HKD 13,194,000, down 50.3% from HKD 26,511,000 year-on-year[2] - Operating loss for the period was HKD 40,690,000, an improvement of 12.1% compared to a loss of HKD 46,464,000 in the previous year[2] - The net loss attributable to the company’s owners was HKD 40,835,000, compared to HKD 45,973,000 in the prior period, reflecting a 11.6% reduction in losses[2] - The company incurred a total loss of HKD 40,838,000 for the six months ended December 31, 2020, compared to a loss of HKD 45,976,000 for the same period in 2019, indicating an improvement of about 11.7%[28] - Basic loss per share attributable to the owners of the company was HKD 0.0218, compared to HKD 0.0245 in the previous year, reflecting a decrease of approximately 11%[30] Revenue Breakdown - Revenue from consumer goods sales was HKD 173,889,000, down from HKD 190,803,000 in the same period of 2019, reflecting a decline of approximately 8.8%[15] - Revenue from agricultural products sales decreased to HKD 103,303,000 from HKD 143,850,000, representing a decline of about 28.2%[15] - Logistics service revenue fell to HKD 1,772,000 from HKD 6,913,000, a decrease of approximately 74.4%[15] - Revenue from external customers in the fast-moving consumer goods segment was HKD 173,889,000, down from HKD 190,803,000 in the previous year, a decrease of about 8.8%[21] - The logistics services segment reported revenue of HKD 1,772,000, significantly lower than HKD 6,913,000 in the prior year, reflecting a decline of approximately 74.5%[24] Assets and Liabilities - Total assets as of December 31, 2020, were HKD 1,605,524,000, a slight decrease from HKD 1,630,786,000 as of June 30, 2020[4] - Current assets amounted to HKD 848,086,000, down from HKD 1,004,336,000 at the end of the previous period[4] - The company’s equity attributable to owners was HKD 1,502,693,000, down from HKD 1,521,320,000[5] - Trade receivables increased to HKD 330.4 million as of December 31, 2020, compared to HKD 268.7 million as of June 30, 2020[32] - The company's trade payables rose to HKD 72.9 million as of December 31, 2020, from HKD 69.2 million as of June 30, 2020[36] Cash Flow and Liquidity - The company’s cash and bank balances decreased to HKD 289,942,000 from HKD 349,334,000, indicating a reduction in liquidity[4] - Cash used in operating activities netted HKD 50,766,000 for the six months ended December 31, 2020, significantly higher than HKD 2,395,000 in the previous year[6] - Total cash and cash equivalents decreased by HKD 71,653,000, from HKD 449,665,000 at the beginning of the period to HKD 289,942,000 at the end of the period[6] - The total cash flow used in investment activities was HKD 9,385,000, compared to HKD 6,599,000 in the previous year, indicating increased cash outflow[6] - The company reported a net cash outflow from financing activities of HKD 11,502,000, compared to HKD 571,000 in the same period last year[6] Cost Management - The company reported a significant reduction in the cost of goods sold, which was HKD 252,889,000 for the period, down from HKD 299,645,000 in the previous year, a decrease of approximately 15.6%[28] - Sales and distribution expenses decreased by approximately 27.1% to about HKD 23,000,000, representing 8.2% of revenue compared to 9.1% in the same period last year[47] - Administrative expenses reduced by approximately 25.1% to about HKD 33,200,000 due to cost-cutting measures implemented by the company[47] Business Segments and Strategies - The company operates in four main business segments: fast-moving consumer goods trading, agricultural products trading, logistics services, and other businesses including securities brokerage and travel retail[44] - The fast-moving consumer goods trading business contributed approximately 62.0% to total revenue, facing severe impacts from the pandemic and local brand competition[52] - Agricultural products business revenue decreased by approximately 28.2%, with trading revenue down about 30.4%, while upstream farming revenue grew by approximately 16.7%[53] - The logistics services segment contributed approximately 0.6% to overall revenue during the period, with a decrease in revenue primarily due to a decline in traditional trade business and a reduction in third-party transportation services[55] Future Outlook and Risks - The ongoing pandemic remains the largest uncertainty for the global economy, with potential severe consequences if vaccines do not effectively reduce infection rates[57] - The group is cautiously optimistic about the upstream farming business, with ongoing projects including the construction of a fruit processing center and development of agricultural tourism[54] - The group aims to seek higher interest income through strategic investments in the current uncertain global trade market[61] Governance and Compliance - The company has adopted the "Standard Code" as the code of conduct for directors' securities trading, confirming full compliance with the standards as of December 31, 2020[79] - The interim report for the six months ended December 31, 2020, has been reviewed by the company's audit committee but not audited by external auditors[80] - Major shareholders included Best Global and Glazy Target, holding approximately 14.69% and 23.32% of the issued shares, respectively[69]