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].

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]