Financial Performance - Revenue for the fiscal year 2019/20 decreased by approximately 35.5% to around HKD 541.9 million[10] - Net loss for the fiscal year 2019/20 was approximately HKD 318.4 million, compared to a net loss of about HKD 286 million in the previous fiscal year[10] - Total revenue for the year ended June 30, 2020, was HKD 541,915,000, a decrease of 35.5% from HKD 840,732,000 in 2019[198] - Gross profit for the same period was HKD 32,084,000, down 55.5% from HKD 72,101,000 in 2019[198] - Operating loss increased to HKD 318,648,000 from HKD 287,012,000, reflecting a deterioration in financial performance[198] - The company reported a pre-tax loss of HKD 319,189,000, compared to a pre-tax loss of HKD 287,024,000 in the previous year[198] - Net loss for the year was HKD 318,350,000, compared to a net loss of HKD 285,976,000 in 2019, indicating a 11.3% increase in losses[198] - Basic loss per share was HKD 0.17, compared to HKD 0.15 in the previous year[198] Operational Challenges - The impact of COVID-19 and local brand competition has led to increased operational challenges, including supply chain disruptions and rising costs[11] - The group anticipates significant negative impacts on business performance due to uncertainties such as the COVID-19 pandemic and rising unemployment rates[17] - The company faced significant challenges due to the pandemic, leading to a sharp decline in the retail market and disruptions in supply chains[29] - The group has postponed potential acquisitions in the luxury goods and chocolate retail sectors due to the slow recovery of the tourism industry[10] - The group adopted more cautious assumptions for business forecasts due to the weak economic environment, leading to significant impairment losses on fixed assets and receivables[9] Cost Management - The group will continue to implement cost-saving measures and maintain a conservative approach to capital investments to address unexpected challenges[18] - Administrative expenses decreased by approximately 18.5% to about HKD 77.5 million, attributed to various cost-saving measures implemented by the company[32] - Sales and distribution expenses decreased by approximately 19.2% to about HKD 55.5 million, representing 10.2% of total revenue, an increase from 8.2% in the previous fiscal year[31] - The company is implementing various cost-cutting measures in its retail business due to significant impacts from the pandemic on tourism and retail sectors[43] Investment and Financial Strategy - The group continues to invest in fixed income instruments issued by other listed companies to increase interest income amid uncertain market conditions[10] - Approximately HKD 60 million from a rights issue has been utilized for the securities brokerage business, with an expected HKD 147.3 million to be used by March 10, 2021[26] - The group plans to utilize unspent funds of approximately HKD 147,300,000 for potential acquisitions, which were delayed due to market conditions[59] Environmental Impact - Total greenhouse gas emissions decreased by approximately 343 tons of CO2 equivalent compared to the previous fiscal year, primarily due to reduced business activities and tightened energy-saving measures[152] - Direct greenhouse gas emissions were 214 tons of CO2 equivalent in 2020, down from 305 tons in 2019, while indirect emissions were 585 tons, down from 837 tons[152] - Total energy consumption decreased by approximately 423 MWh in 2020 compared to the previous fiscal year, primarily due to reduced business activities and energy-saving measures[157] - Water consumption increased by approximately 636 tons in 2020, mainly due to increased cleaning and disinfection efforts to prevent the spread of COVID-19[158] Governance and Compliance - The company has maintained a consistent approach to corporate governance and financial planning, overseen by experienced management[75][76][77] - The board of directors consists of four executive directors and three independent non-executive directors, ensuring a balanced governance structure[118] - The independent auditor, RSM Hong Kong, will be proposed for reappointment at the upcoming annual general meeting[115] - The company has adopted the Corporate Governance Code and has complied with all applicable provisions, except for a deviation from code A.2.1[116] Impairment and Asset Management - The group recognized an impairment loss of approximately HKD 567 million for its fast-moving consumer goods trading business due to a decline in revenue caused by the COVID-19 pandemic[184] - Impairment losses for fixed assets, right-of-use assets, and prepayments in the agricultural segment were approximately HKD 76,000,000, HKD 3,000,000, and HKD 29,000,000 respectively[179] - The carrying amount of logistics service assets was approximately HKD 156,000,000 as of June 30, 2020, with impairment losses recognized due to revenue decline from the COVID-19 pandemic[181] Future Outlook - The group anticipates a challenging business environment in the coming year due to uncertainties stemming from the COVID-19 pandemic and global economic conditions[63] - The current macroeconomic environment is characterized by uncertainties, including the pandemic's spread and geopolitical tensions, prompting the group to adopt a more prudent approach in its future developments[65] - The group plans to enhance procurement networks and product offerings post-COVID-19 to mitigate the impact of disrupted international trade[17]

Financial Performance - Revenue for the six months ended December 31, 2019, was HKD 344,866,000, a decrease of 24.3% compared to HKD 455,024,000 for the same period in 2018[3] - Gross profit for the same period was HKD 26,511,000, down 36.0% from HKD 41,367,000 year-on-year[3] - Operating loss for the period was HKD 46,464,000, slightly improved from a loss of HKD 48,051,000 in the previous year, indicating a reduction of 3.3%[3] - The net loss attributable to the company’s owners was HKD 45,973,000, compared to HKD 47,089,000 in the prior period, reflecting a decrease of 2.4%[3] - Total comprehensive loss for the period was HKD 59,746,000, down from HKD 78,136,000 in the previous year, representing a 23.5% improvement[5] - The group reported a total loss of HKD 45,188,000 for the period, compared to a loss of HKD 31,361,000 in the previous year[35] - The group reported a loss of approximately HKD 45,973,000 for the six months ended December 31, 2019, compared to a loss of HKD 47,089,000 for the same period in 2018[41] Assets and Liabilities - Total assets as of December 31, 2019, were HKD 1,913,256,000, a decrease from HKD 1,981,836,000 as of June 30, 2019[7] - Current assets amounted to HKD 1,239,096,000, an increase from HKD 1,107,989,000 in the previous period[6] - The company’s equity attributable to owners was HKD 1,792,249,000, down from HKD 1,851,992,000, indicating a decrease of 3.2%[7] - The company’s cash and cash equivalents stood at HKD 432,472,000, down from HKD 463,242,000, a decline of 6.6%[6] - The group’s total assets as of December 31, 2019, amounted to HKD 1,602,694,000[32] - The group’s total liabilities related to trade payables were HKD 82,445,000 as of December 31, 2019, slightly down from HKD 83,855,000 as of June 30, 2019[46] Cash Flow - The company reported a net cash outflow of HKD 9,565,000 for the six months ended December 31, 2019, compared to a net outflow of HKD 101,203,000 for the same period in 2018[10] - Operating cash flow before changes in working capital showed a loss of HKD 10,047,000 for the six months ended December 31, 2019, compared to a profit of HKD 6,705,000 in the previous year[9] - The company’s cash flow from operating activities was negative at HKD 2,395,000 for the six months ended December 31, 2019, compared to a positive cash flow of HKD 11,916,000 in the previous year[9] - The company incurred a net cash outflow from investing activities of HKD 6,599,000, a decrease from HKD 112,123,000 in the prior year[9] Revenue Breakdown - Revenue from consumer goods sales was HKD 190,803,000, down 28% from HKD 264,514,000 in the previous year[28] - Revenue from agricultural products sales decreased to HKD 143,850,000, a decline of 20.2% from HKD 180,314,000[28] - Logistics service revenue was HKD 6,913,000, down 20.6% from HKD 8,718,000[28] - Fast-moving consumer goods trading business contributed approximately 55% to total revenue during the period[61] - The packaging food segment remains the most significant category, accounting for about 75% of the fast-moving consumer goods trading business[60] Expenses - The cost of goods sold for the period was HKD 299,645,000, down from HKD 387,036,000 in the previous year, representing a decrease of approximately 22.6%[39] - The group’s depreciation and amortization expenses were HKD 39,876,000, a decrease from HKD 43,123,000 in the prior year, reflecting a reduction of about 7.3%[39] - Selling and distribution expenses decreased by approximately 4.6% to about HKD 31.6 million, accounting for about 9.1% of revenue, an increase from approximately 7.3% in the previous year[57] - Administrative expenses decreased by approximately 4.6% to about HKD 44.2 million, despite inflationary pressures in the Greater China region[58] Market Conditions - The ongoing COVID-19 pandemic may severely impact the group's operations in China, particularly in fast-moving consumer goods, agricultural products, and logistics services[51] - The outbreak of the coronavirus is expected to be the biggest uncertainty for the global economy moving forward[64] - Revenue from the agricultural products business decreased by approximately 20% due to economic slowdown and unexpected weather conditions[62] - Securities brokerage income declined by approximately 20% due to tense trade conditions and social unrest in Hong Kong[63] Governance and Compliance - The interim report for the six months ending December 31, 2019, was reviewed by the company's audit committee but not audited by external auditors[82] - The company has maintained compliance with the Corporate Governance Code, except for the separation of roles between the Chairman and CEO, which is held by the same individual, Mr. Lam Kwok Hing[80] - The board consists of four executive directors and three independent non-executive directors as of the report date[84] Shareholder Information - Major shareholders include Best Global with 275,078,914 shares (14.69%) and Glazy Target with 436,755,073 shares (23.32%) as of December 31, 2019[74] - As of December 31, 2019, the company had 45,448,000 unexercised share options, a decrease from 45,968,000 on December 31, 2018[77] - The total additional share capital from the exercise of unexercised options would be approximately HKD 4,545,000, down from HKD 4,597,000 in the previous year[77]

Financial Performance - Revenue decreased by approximately 14.3% to around HKD 840.7 million for the fiscal year 2019[8] - Net loss for the fiscal year 2019 was approximately HKD 286 million, compared to a net loss of about HKD 156.6 million in the previous fiscal year[8] - The group's total revenue for the fiscal year was approximately HKD 840.7 million, a decrease of about 14.3% from HKD 981.5 million in the previous fiscal year, primarily due to declines in various business segments[28] - Gross profit margin fell from approximately 9.3% to 8.6%, attributed to RMB depreciation and the need to introduce lower-priced products in a weak market[30] - The net loss for the fiscal year was approximately HKD 286 million, an increase from HKD 156.6 million in the previous year, driven by reduced revenue and increased operating expenses[33] - Other income and gains rose from approximately HKD 10.5 million to HKD 17.8 million, mainly due to interest income from convertible bonds issued by Chinese health companies[30] - The group anticipates a more challenging environment for its traditional trade business in the coming year due to ongoing trade disputes and economic conditions[7] - The group anticipates severe challenges for its securities brokerage and passenger retail businesses in the coming years due to ongoing market uncertainties[16] - The company reported a significant increase in impairment losses on receivables, rising to HKD 20,587,000 from HKD 11,709,000 in 2018[198] - Total comprehensive loss for the year amounted to HKD 307,419,000, compared to HKD 129,091,000 in 2018[200] Business Strategy and Operations - The group plans to diversify its operations by entering the securities brokerage, gas station trademark licensing, and travel retail businesses[8] - The group is developing a food processing center to enhance distribution and brand establishment for its citrus products[12] - The group is expanding its procurement network for fresh agricultural products, which has helped stabilize trade revenue despite a weak economic environment[9] - The group is reducing the scale of its frozen chain product trade to save on high maintenance costs[9] - The group has decided to sell its investment in the "Gulf" trademark licensing due to high advertising costs and economic uncertainty[8] - The group has decided to sell its gas station licensing business due to weak market demand and intense competition from state-owned fuel retailers, resulting in lower-than-expected revenue[13] - The company plans to develop a food processing center and agricultural tourism business to diversify revenue sources and mitigate operational risks[39] - The company is considering a potential acquisition of a company engaged in high-end consumer goods retail and dining services in Hong Kong, with the exclusivity period expiring on December 31, 2019[23] - The company plans to redirect unutilized funds from a previous rights issue to finance a potential acquisition of a retail and dining business in Hong Kong[41] Market Conditions and Challenges - The economic growth outlook is pessimistic due to uncertainties such as the US-China trade dispute and ongoing protests in Hong Kong, prompting the group to adopt a cautious approach and implement cost-cutting measures[15] - The overall import value in China declined by 4.3% in the first half of 2019, compared to a growth of 19.9% the previous year, reflecting the adverse effects of the trade war[22] - The group continues to face significant pressure on sales performance due to intense competition and a decline in consumer confidence, exacerbated by the ongoing political unrest in Hong Kong[22] - The agricultural products trading business faces challenges from increased competition and rising import costs, exacerbated by weak consumer confidence and anti-luxury sentiment[38] - The group anticipates challenges in its traditional trading business due to the ongoing trade war and political risks, which may increase import costs and consumer confidence issues[60] Corporate Governance and Management - The company has a strong governance structure with independent non-executive directors overseeing audit and remuneration committees[68][69] - The board believes that the current leadership structure will benefit the company and all shareholders effectively[15] - The company emphasizes the importance of maintaining strong relationships with employees, suppliers, and customers to achieve business goals[51] - The board is responsible for overseeing the company's overall management, including business strategy and significant financial matters[120] - The company has adopted a dividend policy effective from January 1, 2019, which considers financial performance, liquidity, operational needs, and overall economic conditions before declaring dividends[138] Environmental and Social Responsibility - Total greenhouse gas emissions decreased by approximately 192 tons of CO2 equivalent in 2019, primarily due to energy-saving measures in locations and offices[153] - The company strictly adheres to environmental laws and regulations, including the Air Pollution Prevention Law and the Water Pollution Prevention Law of the People's Republic of China[151] - The company emphasizes the importance of employee health and safety, adhering strictly to relevant laws and regulations, and has implemented a comprehensive internal operations manual for health and safety guidelines[33] - The company actively participates in charitable activities and encourages employees to engage in volunteer work[170] Financial Position and Assets - As of June 30, 2019, the group's current assets were approximately HKD 1,108,000,000, down from HKD 1,531,200,000 in the previous year, while current liabilities were approximately HKD 135,900,000[57] - The group's current ratio as of June 30, 2019, was approximately 8.2, compared to 11.8 the previous year, indicating a decrease in liquidity[57] - The total assets of the group were approximately HKD 1,981,800,000 as of June 30, 2019, down from HKD 2,286,700,000 in the previous year, with total liabilities of approximately HKD 145,700,000[57] - The company’s distributable reserves as of June 30, 2019, were approximately HKD 1,530,925,000, a decrease from HKD 1,818,659,000 in 2018[85] Impairment and Losses - The company reported a goodwill impairment loss of approximately HKD 1,500,000 and HKD 19,500,000 for its securities trading and frozen chain distribution cash-generating units, respectively[176] - Impairment losses for fixed assets, other intangible assets, prepayments, and other receivables in the agricultural segment were approximately HKD 8 million, HKD 20 million, and HKD 29 million respectively[178] - Impairment losses for fixed assets in the logistics segment were approximately HKD 42 million[181] - Impairment losses for fixed assets in the consumer goods trading segment were approximately HKD 39 million[183]

Financial Performance - Revenue for the six months ended December 31, 2018, was HKD 455,024,000, a decrease of 8.2% from HKD 495,817,000 in the same period last year[3] - Gross profit for the same period was HKD 41,367,000, down 3.8% from HKD 42,984,000 year-on-year[3] - Operating loss increased to HKD 48,051,000 compared to a loss of HKD 47,077,000 in the previous year[3] - Loss attributable to owners of the company was HKD 47,089,000, slightly improved from HKD 48,799,000 in the prior period[3] - Total comprehensive loss for the period was HKD 78,136,000, compared to a loss of HKD 37,055,000 in the same period last year[4] - The company reported a basic loss per share of HKD 0.0251, compared to HKD 0.0270 in the previous year[3] - Operating profit before changes in working capital for the six months ended December 31, 2018, was HKD 6,705,000, a decrease of 59% compared to HKD 16,397,000 in the same period of 2017[8] - Cash generated from operating activities was HKD 12,749,000, significantly higher than HKD 4,826,000 in the previous year[8] - The company reported a total comprehensive income of HKD (78,123,000) for the six months ended December 31, 2018, compared to HKD (36,589,000) in the previous year[7] - The group recorded a net loss attributable to owners of approximately HKD 47,089,000 for the period, compared to a loss of HKD 48,799,000 in the previous year[33] Assets and Liabilities - Non-current assets decreased to HKD 897,338,000 from HKD 755,515,000 as of June 30, 2018[5] - Current assets decreased to HKD 1,313,451,000 from HKD 1,531,203,000 as of June 30, 2018[6] - Total assets as of December 31, 2018, were HKD 2,210,789,000, down from HKD 2,286,718,000[6] - Total equity attributable to owners of the company decreased to HKD 2,080,373,000 from HKD 2,163,420,000[6] - The company’s total equity as of December 31, 2018, was HKD 2,063,480,000, down from HKD 2,234,371,000 at the end of 2017[7] - The current ratio as of December 31, 2018, was approximately 9.6, down from 11.8 as of June 30, 2018[62] - As of December 31, 2018, the company had interest-bearing borrowings of approximately HKD 15,000,000, down from HKD 16,000,000 as of June 30, 2018[61] - The capital debt ratio remained low at approximately 0.7% as of December 31, 2018, consistent with the previous period[62] Revenue Breakdown - The group's revenue for fast-moving consumer goods and agricultural products was HKD 455,024,000 for the six months ended December 31, 2018, a decrease of 8.2% compared to HKD 495,817,000 in the same period of 2017[23] - Sales of consumer goods amounted to HKD 264,514,000, down from HKD 268,380,000, reflecting a decline of 1.3%[23] - Agricultural product sales decreased by 13.3% to HKD 180,314,000 from HKD 207,797,000[23] - Logistics service revenue was HKD 8,718,000, down from HKD 10,504,000, representing a decline of 17.0%[23] - Revenue from external customers for fast-moving consumer goods was HKD 264,514,000, while the agricultural products business generated HKD 180,314,000, and logistics services contributed HKD 8,718,000, totaling HKD 455,024,000[27] Expenses and Costs - The cost of goods sold for the period was HKD 387,036,000, down from HKD 413,257,000 in the previous year[31] - Sales and distribution expenses decreased by approximately 8.9% to about HKD 33.1 million, representing about 7.3% of revenue[47] - Administrative expenses reduced by approximately 5.6% to about HKD 46.3 million, aided by cost-saving measures[47] - The group incurred finance costs of HKD 21,000 for the period, slightly up from HKD 19,000 in the previous year[29] - The group recognized a deferred tax credit of HKD 438,000 for the period, compared to HKD 1,029,000 in the previous year[29] - The group’s employee costs, excluding directors' remuneration, totaled HKD 13,445,000, compared to HKD 12,615,000 in the previous year[31] Strategic Developments - The group completed the acquisition of 70% equity in Richic Mind Limited, which is expected to provide a stable income source through licensing fees from the "Gulf" brand in China[52] - The group is actively exploring the development and distribution of traditional Chinese medicine products and other pharmaceutical products in collaboration with China Smart Health[52] - The group aims to maintain stable gross margins despite pressures from RMB depreciation and increased competition from local brands[54] - The group plans to continue its sustainable business model in the FMCG trading sector while strengthening long-term relationships with suppliers and customers[54] Governance and Compliance - The company has adopted the Corporate Governance Code and complied with all applicable provisions, except for a deviation regarding the separation of roles between the chairman and CEO[74][75] - The chairman and CEO roles are held by Mr. Lin, who has over 30 years of experience in the consumer goods industry[75] - The mid-term report for the six months ended December 31, 2018, was reviewed by the company's audit committee but not audited by external auditors[77] - The company confirmed that all directors complied with the Standard Code regarding securities transactions during the six months ended December 31, 2018[76] - The board of directors includes four executive directors and three independent non-executive directors as of the report date[78]