香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任 何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 FOUR SEAS MERCANTILE HOLDINGS LIMITED 業績 四洲集團有限公司（「本公司」）董事會（「董事會」）宣佈，本公司及其附屬公司（統 稱「本集團」）截至二零二五年三月三十一日止年度之初步綜合業績連同去年之比 較數字如下： 1 綜合損益表 截至二零二五年三月三十一日止年度 | | | 二零二五年 | 二零二四年 | | --- | --- | --- | --- | | | 附註 | 港幣千元 | 港幣千元 | | 收入 | 4 | 3,625,422 | 3,898,222 | | 銷售成本 | | (2,757,137) | (2,986,036) | | 毛利 | | 868,285 | 912,186 | | 其他收入及收益╱（虧損），淨額 | 4 | 15,717 | (1,415) | | 銷售及分銷費用 | | (444,065) | (459,497) | | ...

Financial Performance - Revenue for the six months ended September 30, 2024, was HK$1,716,129,000, a decrease of 12.1% compared to HK$1,954,785,000 in the same period last year[29]. - Gross profit for the period was HK$413,499,000, down 10.1% from HK$459,800,000 year-on-year[29]. - Profit before tax decreased to HK$29,681,000, a decline of 22.0% from HK$38,027,000 in the previous year[29]. - Profit for the period was HK$18,274,000, representing a decrease of 34.7% compared to HK$28,006,000 in the same period last year[29]. - Earnings per share attributable to ordinary equity holders decreased to HK5.3 cents, down from HK7.9 cents year-on-year[29]. - For the six months ended September 30, 2024, the profit for the period was HK$18,274,000, a decrease of 34.6% compared to HK$28,006,000 in the same period of 2023[52]. - The company reported a profit before tax of HK$29,681,000 for the six months ended September 30, 2024, down from HK$38,027,000 in 2023[59]. - Profit attributable to ordinary equity holders for the six months ended September 30, 2024 is HK$20,462,000, a decrease of 32.5% from HK$30,269,000 in 2023[137]. Assets and Liabilities - Total non-current assets increased to HK$1,238,904,000 as of September 30, 2024, up from HK$1,208,176,000 as of March 31, 2024, reflecting a growth of 2.5%[32]. - Total current assets decreased slightly to HK$1,703,656,000 from HK$1,719,967,000, representing a decline of 0.9%[32]. - Total current liabilities increased to HK$1,533,784,000, up from HK$1,478,803,000, indicating a rise of 3.7%[33]. - The net current assets decreased to HK$169,872,000 from HK$241,164,000, a decline of 29.6%[33]. - Total liabilities as of September 30, 2024, were HK$1,688,698,000, with segment liabilities from Hong Kong at HK$508,310,000, Chinese Mainland at HK$278,586,000, and Japan at HK$282,848,000[78]. Cash Flow and Investments - Cash and cash equivalents decreased to HK$569,875,000 from HK$625,940,000, a reduction of 8.9%[32]. - Cash generated from operations for the six months ended September 30, 2024, was HK$43,194,000, a decrease from HK$122,295,000 in 2023[59]. - Net cash flows used in investing activities for the six months ended September 30, 2024, were HK$43,613,000, compared to HK$28,594,000 in 2023[60]. - The company’s investment in joint ventures increased significantly to HK$7,897,000 from HK$4,558,000, marking a growth of 73.5%[32]. - The Group acquired property, plant, and equipment worth HK$26,026,000 during the six months ended September 30, 2024, compared to HK$27,277,000 in 2023[138]. Strategic Initiatives - The Group aims to optimize its domestic development in the Guangdong-Hong Kong-Macao Greater Bay Area, targeting a population of 86 million[18]. - The Group plans to enhance its e-commerce presence in the Mainland market through platforms like Taobao and JD.com, focusing on new product introductions[18]. - The acquisition of Miyata has allowed the Group to successfully introduce its products into the Hong Kong and Mainland markets, contributing to business growth[19]. - The Group's strategic measures included optimizing pricing and promotional activities to attract price-sensitive consumers[5]. - The Group plans to continue expanding its market presence in the Chinese Mainland and Japan, focusing on enhancing product offerings and operational efficiency[76]. Market Performance - Segment revenue for Hong Kong reached HK$914,183,000, an increase from HK$838,566,000 in the previous period, representing a growth of approximately 9%[76]. - The Chinese Mainland segment's revenue was HK$356,972,000, up from HK$294,368,000, marking a growth of approximately 21%[77]. - Japan segment revenue increased to HK$683,630,000 from HK$583,195,000, representing a growth of about 17%[77]. - Revenue from contracts with customers for the six months ended September 30, 2024, was HK$28,072,000, a decrease from HK$42,715,000 in the same period of 2023, representing a decline of approximately 34%[79]. - The company’s total revenue analysis indicates a significant reliance on the Chinese Mainland market, highlighting the need for strategic adjustments in this segment[99]. Other Financial Metrics - The company reported other comprehensive income for the period of HK$12,395,000, contrasting with a loss of HK$59,805,000 in the previous year[52]. - Total other income and gains, net for the six months ended September 30, 2024 was HK$14,970,000, significantly up from HK$6,499,000 in 2023, reflecting an increase of approximately 130%[126]. - Finance costs for the six months ended September 30, 2024 amounted to HK$26,344,000, compared to HK$22,483,000 in 2023, marking an increase of about 17%[127]. - The Group's current tax charge for the period was HK$10,147,000, an increase from HK$8,134,000 in 2023, representing a rise of approximately 24.8%[131]. - The Group's short-term employee benefits amounted to HK$6,781,000 for the six months ended September 30, 2024, compared to HK$6,652,000 in the previous year, representing an increase of approximately 1.9%[181].

Financial Performance - For the six months ended September 30, 2024, the company reported revenue of HKD 1,716,129, a decrease of 12.1% compared to HKD 1,954,785 for the same period in 2023[3] - Gross profit for the same period was HKD 413,499, down 10.1% from HKD 459,800 in 2023[3] - The net profit for the period was HKD 18,274, representing a decline of 34.6% from HKD 28,006 in the previous year[3] - Basic and diluted earnings per share for the company were HKD 5.3 cents, down from HKD 7.9 cents in 2023, reflecting a decrease of 32.9%[3] - The group’s profit before tax for the six months ended September 30, 2024, was HKD 38,027, compared to HKD 66,493 in the same period of 2023[36] - Profit attributable to equity owners for the same period was HKD 20,462,000, down from HKD 30,269,000 in the previous year[54] - The total tax expense for the period was HKD 11,407,000, an increase from HKD 10,021,000 in the previous year[38] - Other income totaled HKD 14,970, an increase from HKD 6,499 in the previous year[34] Assets and Liabilities - Non-current assets totaled HKD 1,238,904 as of September 30, 2024, an increase from HKD 1,208,176 as of March 31, 2024[8] - Current assets amounted to HKD 1,703,656, slightly down from HKD 1,719,967 as of March 31, 2024[8] - The company’s total liabilities were HKD 1,688,698, resulting in a net asset value of HKD 1,253,862 as of September 30, 2024[10] - Total assets amounted to HKD 2,942,560, with segment assets in Hong Kong at HKD 1,211,734, mainland China at HKD 719,874, and Japan at HKD 463,181[26] - Total liabilities were HKD 1,688,698, with segment liabilities in Hong Kong at HKD 508,310, mainland China at HKD 278,586, and Japan at HKD 282,848[26] - Trade receivables as of September 30, 2024, amounted to HKD 586,877,000, down from HKD 625,047,000 as of March 31, 2024[44] - Trade payables totaled HKD 244,778,000 as of September 30, 2024, a decrease from HKD 266,196,000 as of March 31, 2024[46] Financing and Costs - The company’s financing costs increased to HKD 26,344 from HKD 22,483 in the previous year, indicating a rise of 17.0%[3] - The group’s interest income for the period was HKD 3,318,000, while financing costs (excluding lease liabilities) totaled HKD 20,919,000[22] - The group incurred financing costs of HKD 26,344 for the six months ended September 30, 2024, compared to HKD 22,483 in the same period of 2023[34] Revenue Breakdown - Total revenue for the six months ended September 30, 2024, was HKD 1,716,129,000, with external sales contributing HKD 1,854,560,000[22] - Revenue from the Hong Kong region was HKD 838,566,000, accounting for 49% of total revenue, compared to HKD 914,183,000 last year[54] - Domestic revenue was HKD 294,368,000, representing 17% of total revenue, down from HKD 356,972,000 last year[54] - Revenue from Japan was HKD 583,195,000, accounting for 34% of total revenue, compared to HKD 683,630,000 last year[54] - Sales to external customers in Hong Kong amounted to HKD 838,566, down 8.3% from HKD 914,183 in the previous year[30] - Sales to external customers in mainland China were HKD 294,368, a decrease of 17.5% from HKD 356,972 in the prior year[30] - Sales to external customers in Japan totaled HKD 583,195, down 14.7% from HKD 683,630 in the previous year[30] Strategic Initiatives - The company plans to focus on market expansion and new product development to drive future growth[2] - The group strengthened synergies with mainland China and Japan, optimizing pricing and promotional activities to attract price-sensitive consumers[56] - The group introduced new products to meet changing consumer preferences, including Japanese eggs, specialty drinks, and high-quality rice[57] - The group operates 17 food processing plants in Hong Kong and mainland China, focusing on producing various specialty foods[59] - The group opened a new flagship store in Shenzhen covering 6,000 square feet, showcasing high-quality food products[60] - Following the acquisition of Miyata Company, the group successfully introduced its products to Hong Kong and mainland markets, enhancing growth through strategic partnerships[71] Corporate Governance and Future Outlook - The group maintains high corporate governance standards to enhance shareholder value and protect shareholder interests[81] - The board expresses gratitude to shareholders, business partners, and employees for their continued support[86] - The board of directors includes both executive and independent non-executive members, ensuring diverse governance[87] - The group has confidence in future development, focusing on three core markets: Hong Kong, mainland China, and Japan, to continuously innovate and provide unique products[67] - A new headquarters named "Four Seas Group Center" will be operational by the end of this year, marking a significant milestone in the group's development[68] - The group plans to open a flagship store in Causeway Bay, covering over 20,000 square feet, which will be the largest retail point in Hong Kong, showcasing diverse global cuisines[68] - The mainland market presents significant opportunities, particularly in the Guangdong-Hong Kong-Macao Greater Bay Area, with a population of 86 million and strong economic vitality[70] Compliance and Reporting - The group has adopted new and revised Hong Kong Financial Reporting Standards effective from April 1, 2024, with no significant impact on financial performance[14] - The interim report for the six months ending September 30, 2024, will be published on the Hong Kong Stock Exchange and the company's website[85]

Financial Performance - The Group's consolidated revenue for the year ended March 31, 2024, was HK$3,898,222,000, a decrease from HK$4,150,886,000 in 2023[16]. - Profit attributable to equity holders of the Company was HK$34,657,000, down from HK$40,732,000 in 2023[16]. - The Group's revenue for the year was HK$3,898,222,000, representing a decrease of 6.1% compared to HK$4,150,886,000 in 2023[78]. - Gross profit increased to HK$912,186,000, up 3.7% from HK$879,314,000 in the previous year, with a gross profit margin of 23.4% compared to 21.2% in 2023[76]. - EBITDA for the year was HK$161,383,000, an increase of 24.5% from HK$129,624,000 in 2023[78]. - The profit for the year was HK$33,296,000, down 23.2% from HK$43,358,000 in the previous year[142]. - The total assets as of March 31, 2024, amounted to HK$2,928,143,000, a decrease of 9.73% from HK$3,244,070,000 in 2023[142]. - Total liabilities decreased to HK$1,678,391,000 from HK$1,939,188,000, representing a reduction of 13.45%[142]. - The Group's net profit margin was 0.9%, a slight decrease from 1.0% in 2023[75]. - The increase in gross profit was attributed to improved operational efficiencies despite the decline in revenue[78]. Business Operations and Strategy - The Group actively expanded its business in the Guangdong-Hong Kong-Macao Greater Bay Area, enhancing food business development across the region[12]. - The acquisition of Miyata Co., Ltd. in Japan has allowed the Group to introduce unique Japanese products to Hong Kong and other Greater Bay Area cities[12]. - The Group's competitive advantages were highlighted by the popularity of its products and services among consumers, consolidating its market position[17]. - The overall performance of the Group met expectations despite a weak consumer market in Hong Kong[17]. - The Group's proactive planning and strong capabilities helped navigate the challenging business environment during the year[11]. - The Group's business strategy focuses on "Rooted in Hong Kong, Expanding to Chinese Mainland, and Reaching Out to the World" to maintain its leading position in the food industry[54]. - The Group continues to drive business development through online and offline channels, leveraging major e-commerce platforms such as Taobao, Tmall, and JD.com to increase market share in Mainland China[62][65]. - Following the acquisition of Miyata, the Group successfully introduced foods produced in Mainland China into the Japanese market, enhancing business growth through better procurement networks[63][66]. - The Group aims to strengthen the interconnection of food products between Hong Kong, Mainland China, and Japan, which is expected to generate greater synergy and reduce operational costs[63][66]. Sales and Market Performance - Sales from the Hong Kong segment amounted to HK$1,851,052,000, accounting for 47% of the Group's total sales, indicating steady business performance[25]. - Sales in the Chinese Mainland decreased to HK$682,460,000 in 2024 from HK$750,532,000 in 2023, accounting for 18% of the Group's total turnover[26]. - Sales in Japan fell to HK$1,364,710,000 in 2024 from HK$1,569,018,000 in 2023, representing 35% of the Group's total turnover[27]. - Hong Kong's sales increased slightly to HK$1,851,052,000 in 2024 from HK$1,831,336,000 in 2023, making up 47% of the Group's total turnover[28]. - The Group's sales revenue for snacks decreased by 4% year-over-year, totaling HK$1,536,522,000 in 2024 compared to HK$1,601,991,000 in 2023[88]. - Revenue from confectionery items declined by 9%, amounting to HK$1,214,599,000 in 2024, down from HK$1,329,170,000 in 2023[88]. - Sales revenue for ham, sausage, and other grocery food items decreased by 3%, with 2024 revenue at HK$416,996,000 compared to HK$428,663,000 in 2023[88]. - Beverage and dairy products revenue fell by 25%, from HK$210,871,000 in 2023 to HK$158,304,000 in 2024[88]. Corporate Social Responsibility and Community Engagement - The Group emphasizes environmental responsibility and has integrated sustainable development into its business operations[50]. - The Group's commitment to corporate social responsibility includes sponsoring various organizations and promoting the spirit of "Enjoy Eating"[52]. - The Group's commitment to community service includes sponsoring food products for various organizations, promoting the spirit of "Eating Happily"[122]. - The Group is actively involved in community service and has members in various political and business associations, enhancing its corporate social responsibility profile[190]. Employee and Leadership - The total number of employees as of March 31, 2024, was approximately 2,800, with remuneration packages structured based on market terms and individual qualifications[99]. - The company has a strong leadership team with a mix of over 30 to 40 years of industry experience among its executive directors[189][194]. - The Group has been recognized with multiple awards, including the "Directors Of The Year Awards 2022" for Executive Directors of Listed Companies[190]. - The Group has received multiple accolades, including the "Outstanding Listed Company Award 2023" and recognition for "Quality Tourism Services" from the Hong Kong Tourism Board[49]. - The Group has received multiple awards, including the "Good MPF Employer" for nine consecutive years, recognizing its commitment to employee welfare[113]. Product Development and Quality - The Group's food quality meets international standards, receiving multiple certifications including "HACCP" and "ISO 22000"[35]. - The Group engages in product reformulation to meet evolving consumer expectations for food quality and variety, reflecting ongoing socioeconomic trends[123]. - The Group has established a stringent supplier selection process to mitigate supply chain risks, ensuring stable and quality food materials[124]. - The Group emphasizes customer satisfaction and trust, actively sourcing new products and maintaining high-quality food offerings for consumers in Hong Kong, Mainland China, and Japan[114]. Future Plans and Expansion - The Group plans to launch Four Seas Bama Natural Mineral Water, sourced from Bama county in Guangxi province, known for its mineral-rich underground water[56]. - The Group opened a new "Four Seas Okashi Land" flagship store in Shenzhen, covering approximately 6,000 square feet, which has become a popular choice for consumers since its opening in May 2024[62][65]. - A new "Miyata Store" was opened in YOHO MIX, Yuen Long in June 2024, enhancing the retail network and providing a fresh shopping experience[57]. - The Group plans to expand its retail network by opening a new "Miyata Store" in Yuen Long's YOHO MIX mall in June 2024, aiming to enhance the shopping experience for local residents[60]. - The new store openings and e-commerce strategies are part of the Group's broader plan to capture the growing market demand in the Greater Bay Area and beyond[62][65].

Financial Performance - Revenue for the year ended March 31, 2024, was HKD 3,898,222,000, a decrease of 6.1% from HKD 4,150,886,000 in the previous year[42]. - Gross profit increased to HKD 912,186,000, up 3.7% from HKD 879,314,000 year-on-year[42]. - Net profit for the year was HKD 33,296,000, down 23.2% from HKD 43,358,000 in the previous year[42]. - Basic and diluted earnings per share decreased to HKD 0.090 from HKD 0.106, representing a decline of 15.1%[42]. - The total comprehensive loss for the year was HKD 17,129 thousand in 2024 compared to HKD 28,541 thousand in 2023, indicating an improvement of approximately 40.00%[17]. - Profit attributable to equity owners was HKD 34,657,000, down from HKD 40,732,000 in the previous year[103]. - The total tax expense for the year was HKD 13,636,000, compared to a tax credit of HKD 13,390,000 in the previous year[1]. Assets and Liabilities - Non-current assets decreased from HKD 1,308,900 thousand in 2023 to HKD 1,208,176 thousand in 2024, a reduction of approximately 7.66%[5]. - Current assets decreased from HKD 1,935,170 thousand in 2023 to HKD 1,719,967 thousand in 2024, a decline of about 11.14%[5]. - Total liabilities decreased from HKD 1,752,086 thousand in 2023 to HKD 1,478,803 thousand in 2024, representing a decrease of approximately 15.59%[5]. - The total equity decreased from HKD 1,304,882 thousand in 2023 to HKD 1,249,752 thousand in 2024, a decline of about 4.23%[24]. - The total assets amounted to HKD 2,928,143, while total liabilities were HKD 1,678,391, resulting in a net asset value of HKD 1,249,752[54][56]. Cash Flow and Financing - The cash and cash equivalents decreased from HKD 735,180 thousand in 2023 to HKD 625,940 thousand in 2024, a reduction of approximately 14.83%[5]. - Financing costs decreased to HKD 18,638,000 from HKD 21,099,000, a reduction of 11.6%[42]. - The group has a cash and cash equivalents balance of HKD 625,940,000 as of March 31, 2024[174]. - The total bank credit available to the group is HKD 2,667,085,000, with 34% already utilized[174]. - The group's debt-to-equity ratio stands at 73% as of March 31, 2024, indicating a significant reliance on bank borrowings[174]. Market and Revenue Breakdown - Revenue from external customers in Hong Kong was HKD 1,851,052, while in Mainland China it was HKD 682,460, and in Japan it was HKD 1,364,710[65]. - Revenue from mainland China was HKD 682,460,000, a decline from HKD 750,532,000 in 2023, accounting for 18% of total revenue[106]. - The revenue from the Japan region was HKD 1,364,710,000, a decrease of 13.0% from HKD 1,569,018,000 in the previous year, accounting for 35% of the total revenue[132]. - The company's revenue from Hong Kong operations was HKD 1,851,052,000, representing a slight increase from HKD 1,831,336,000 in the previous year, accounting for 47% of total revenue[159]. Operational Highlights - The company operates in multiple segments, including manufacturing and sales of snacks, candies, beverages, and frozen foods in mainland China[44]. - The company plans to expand its market presence, particularly in Mainland China, where revenue from external customers increased from HKD 750,532 in 2023 to HKD 682,460 in 2024[65]. - The company has ongoing research and development efforts for new products, although specific details were not disclosed in the conference call[65]. - The company plans to expand its retail presence with new stores, including the opening of "Hong Kong Four Seasons Food City" in January 2024[137]. - The group plans to open a new "Miyata Store" in Yuen Long's YOHO MIX shopping mall in June 2024, expanding its retail network[171]. - A flagship store named "Four Seas Snack Story" was opened in Shenzhen, covering approximately 6,000 square feet, to tap into the mainland market[172]. Product Development and Quality - The company aims to enhance its product offerings by introducing high-quality consumer-related food products, including Japanese eggs and milk[133]. - The company will launch a new product, the Four Continents Bama Mineral Water, sourced from Bama County, Guangxi, China, known for its beneficial mineral content and praised by consumers during trial sales in Hong Kong[144]. - The company emphasizes food quality and safety, achieving various international certifications including HACCP, ISO9001, and ISO 22000, ensuring compliance with high standards[163]. - The group is committed to introducing new products and flavors to maintain its leadership in the food industry[169]. Social Responsibility and Governance - The company actively engages in social responsibility initiatives, contributing to community services and receiving recognition for its efforts in employee training and welfare[168]. - The company maintains a strong commitment to corporate governance, ensuring transparency and accountability to shareholders, and adheres to the latest corporate governance guidelines[151]. - The group emphasizes environmental responsibility and has integrated it into its business practices[169]. Employee and Operational Efficiency - The total number of employees in the group is approximately 2,800, with salaries reviewed annually based on performance[175]. - The average credit period for trade accounts is one to three months, with major customers potentially extending to four to five months[122]. - The group reported a decrease in trade receivables aging analysis, with total receivables at HKD 266,196,000, down from HKD 312,370,000 in 2023[98].

Financial Performance - For the six months ended September 30, 2023, the profit attributable to equity holders of the Company was HK$30,269,000, despite the absence of tax refunds and pandemic relief subsidies from the previous year[10]. - Total revenue for the Group was HK$1,954,785,000, with segment revenues from Hong Kong, Mainland China, and Japan being HK$914,183,000, HK$356,972,000, and HK$683,630,000 respectively[15]. - The adjusted profit before tax for the Group was HK$38,027,000, reflecting effective management of sales and operating expenses despite a decline in overall revenue[15]. - The Group's profit before tax for the six months ended 30 September 2023 was HK$1,493,714,000, a decrease of 7.9% compared to HK$1,622,117,000 in the same period of 2022[60]. - Profit attributable to equity owners was HKD 30,269,000, down from HKD 58,381,000 in the previous year, reflecting a significant decline[136]. - The net profit margin decreased to 1.5% from 2.8% year-on-year[188]. Revenue and Segment Performance - The Group's Hong Kong segment reported a segment profit of HK$46,862,000, while the Mainland China and Japan segments reported profits of HK$15,890,000 and HK$3,741,000 respectively[15]. - The Group recognized revenue from contracts with customers amounting to HK$42,715,000 from Mainland China, an increase from HK$26,804,000 in the previous year[24]. - The Group's total segment results amounted to HK$66,493,000, indicating resilience in profitability amidst challenging market conditions[15]. - Revenue from the Hong Kong market was HKD 914,183,000, accounting for 47% of total revenue, while revenue from the domestic market was HKD 356,972,000, representing 18% of total revenue[136]. - The Group's consolidated revenue for the six months ended September 30, 2023, was HKD 1,954,785,000, a decrease of 7.5% compared to HKD 2,112,609,000 in the same period last year[136]. Cost and Expenses - The Group's depreciation and amortization expenses totaled HK$38,700,000, reflecting ongoing investments in property, plant, and equipment[15]. - The cost of inventories sold was HK$1,493,714,000, reflecting a reduction from HK$1,622,117,000, which indicates a 7.9% decrease year-over-year[60]. - The write-down of slow-moving inventories amounted to HK$1,271,000, indicating ongoing inventory management efforts[15]. - The Group's finance costs for the six months ended September 30, 2023, amount to HK$22,483,000, compared to HK$11,285,000 in the previous year[49]. Taxation - The Group's total tax charge for the period is HK$10,021,000, compared to a tax credit of HK$14,081,000 in the previous year[55]. - Current tax charge for the period in Hong Kong is HK$8,134,000, down from HK$12,300,000 in the previous year[55]. - The Group's estimated taxable profits are subject to a tax rate of 16.5% in Hong Kong, consistent with the previous year[54]. - The Group's deferred tax for the period is a credit of HK$1,620,000, compared to a credit of HK$1,370,000 in the previous year[55]. Inventory and Receivables - Trade receivables as of 30 September 2023 totaled HK$286,778,000, a decrease from HK$312,370,000 as of 31 March 2023, indicating an 8.2% reduction[77]. - The impairment of trade receivables was HK$526,000 for the period, compared to HK$72,000 in the previous year, showing a significant increase in impairment[60]. - Inventory turnover days improved to 40 days from 42 days, while trade receivables turnover days increased slightly to 62 days from 61 days[188]. Dividends and Shareholder Information - The interim dividend declared for the six months ended 30 September 2023 was HK3.0 cents per ordinary share, consistent with the previous year[67]. - The Group declared an interim dividend of HK3.0 cents per ordinary share for the six months ended September 30, 2023, consistent with the previous year[108]. - Approximately 19.32% of the Company's total issued shares are held by Special Access Limited, owned by Mr. Tai Tak Fung, Stephen, and his spouse[199]. - The Company has a significant interest in controlled corporations, with 259,478,000 shares representing 67.53% of the issued shares[196]. Market Expansion and Strategy - The Group has plans for market expansion and new product development, although specific details were not disclosed in the report[10]. - The Group aims to expand its market presence in Mainland China and Japan, leveraging the acquisition of Miyata to create a unique food sales platform[146]. - The Group's strategy includes introducing high-quality Japanese candy and snack products to the markets of Hong Kong and Mainland China[146]. - The Group plans to utilize Miyata's extensive snack and confectionery supply and distribution networks in Japan to expand its business opportunities in the Japanese market[184]. - The Group is confident in its development prospects in the Mainland, targeting the Guangdong-Hong Kong-Macao Greater Bay Area with a population of over 80 million, which shares similar food cultures with Hong Kong[155]. Operational Efficiency - The Group's cash flow management remains strong, with trade payables typically settled within 30 to 60 days, contributing to operational efficiency[7]. - The Group's catering and retail businesses have seen significant growth post-pandemic, with popular restaurants in both Mainland China and Hong Kong[168]. - The Group operates 17 food processing plants in Hong Kong and Mainland China, enhancing its production and sales strategy[121]. - The Group operates 17 food processing factories in Mainland China and Hong Kong, enhancing its position in the specialty food industry[143]. Certifications and Quality Standards - The Group has obtained multiple certifications, including "HACCP" and "ISO 9001", ensuring its food products meet international quality standards[167]. - The Group has received various recognitions, including "QTS Merchant" for "Okashi Land" and being named one of the Top Favourite Brands (Snacks) by Wellcome Supermarket[149]. Financial Position and Gearing - As of September 30, 2023, the Group held cash and cash equivalents of HK$591,092,000 and had banking facilities of HK$2,715,755,000, with 35% utilized[185]. - The Group's gearing ratio was 78% as of September 30, 2023, indicating the proportion of bank borrowings to equity attributable to equity holders[185]. - The Group pledged land and buildings valued at approximately HK$76,611,767 and investment properties valued at approximately HK$16,401,200 to secure banking facilities[188]. Employee Information - The total number of employees as of 30 September 2023 was approximately 2,800, with remuneration packages structured based on market terms and individual qualifications[192]. Foreign Exchange and Hedging - The Group does not currently maintain a foreign currency hedging policy, monitoring foreign exchange positions to minimize impacts from currency fluctuations[192]. - The Group's foreign exchange exposure mainly arises from transactions in Japanese yen and Renminbi, which may impact operating results[192].

Financial Performance - Revenue for the six months ended September 30, 2023, was HKD 1,954,785, a decrease of 7.5% from HKD 2,112,609 in the same period of 2022[2] - Gross profit for the period was HKD 459,800, down from HKD 489,242, reflecting a decline of 6.0%[2] - Net profit attributable to equity owners of the company was HKD 30,269, a decrease of 48.2% compared to HKD 58,381 in the previous year[2] - Basic and diluted earnings per share were HKD 7.9 cents, down from HKD 15.2 cents, representing a decline of 48.0%[2] - Total comprehensive loss for the period was HKD 61,653, compared to a loss of HKD 109,983 in the previous year[14] - The group incurred a loss of HKD 799,000 in net income for the period[43] - Other income for the six months ended September 30, 2023, was HKD 11,146,000, down from HKD 18,733,000 in 2022[71] - The group reported a total of HKD 66,702,000 in segment performance, with Hong Kong contributing HKD 59,329,000, China HKD 5,692,000, and Japan HKD 1,681,000[34] Assets and Liabilities - Non-current assets decreased to HKD 1,241,218 from HKD 1,308,900, a decline of 5.1%[7] - Current assets totaled HKD 1,766,925, down from HKD 1,935,170, reflecting a decrease of 8.7%[8] - Current liabilities decreased to HKD 1,540,932 from HKD 1,752,086, a reduction of 12.0%[8] - Total assets of the group amounted to HKD 3,008,143,000, with segment assets of HKD 1,297,046,000 for Hong Kong, HKD 714,255,000 for China, and HKD 494,676,000 for Japan[41] - The total liabilities of the group were HKD 1,761,534,000, with segment liabilities of HKD 556,826,000 for Hong Kong, HKD 307,394,000 for China, and HKD 305,477,000 for Japan[41] - Trade payables amounted to HKD 286,778,000 as of September 30, 2023, down from HKD 312,370,000 as of March 31, 2023[70] Revenue Breakdown - Total revenue for the six months ended September 30, 2023, was HKD 2,102,259,000, with external sales contributing HKD 1,954,785,000[24] - Revenue from the Hong Kong region was HKD 914,183,000, accounting for 47% of total revenue, while revenue from the domestic market was HKD 356,972,000, representing 18%[77] - Revenue from Japan was HKD 683,630,000, making up 35% of total revenue, with a decline attributed to currency depreciation[77] - Revenue from contracts with customers in mainland China increased to HKD 42,715,000 in 2023 from HKD 26,804,000 in 2022, reflecting a growth of 59.4%[59] Expenses and Costs - The cost of goods sold for the six months ended September 30, 2023, was HKD 1,493,714,000, a decrease of 7.9% from HKD 1,622,117,000 in 2022[56] - Total tax expenses for the six months ended September 30, 2023, were HKD 10,021,000, compared to a tax credit of HKD 14,081,000 in 2022, indicating a shift from a tax benefit to an expense[58] - Interest expenses on bank loans and trust receipts increased to HKD 19,152,000 in 2023 from HKD 8,637,000 in 2022, representing a significant increase of 121.1%[56] - The company reported a decrease in the depreciation of property, plant, and equipment to HKD 36,615,000 in 2023 from HKD 38,434,000 in 2022, a reduction of 4.7%[56] Dividends and Shareholder Information - The interim dividend per ordinary share remained unchanged at HKD 0.03 for both 2023 and 2022, with total dividends of HKD 11,527,000 in 2023 compared to HKD 11,528,000 in 2022[50] - Basic earnings per share for the six months ended September 30, 2023, were calculated based on a weighted average of 384,221,640 ordinary shares issued[48] - The board declared an interim dividend of HKD 0.03 per ordinary share, consistent with the previous year[81] Strategic Initiatives and Market Outlook - The group plans to continue monitoring segment performance to optimize resource allocation and assess future growth opportunities[22] - The group aims to expand its market share in mainland China and Japan, creating a unique food sales platform that enhances sales capabilities and customer base[92] - The group is optimistic about the mainland market, targeting the Greater Bay Area's population of over 80 million, which shares similar food preferences with Hong Kong[97] - The group plans to introduce high-quality Japanese food products, such as rice and eggs, to create stable revenue sources post-acquisition of Miyata[95] - The group has successfully expanded the Miyata ice cream brand into the mainland market, leveraging various distribution channels for sales[86] Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code as outlined in Appendix 14 of the Listing Rules during the six months ending September 30, 2023[117] - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and risk management[111] - The company has adopted a code of conduct for securities trading, confirming compliance by all directors during the reporting period[118] Employee and Operational Information - The total number of employees as of September 30, 2023, was approximately 2,800, with salaries reviewed annually based on performance and market conditions[108] - The group operates 17 food processing plants in Hong Kong and mainland China, producing various specialty foods to solidify its industry leadership[98] Social Responsibility and Sustainability - The group is actively engaging in corporate social responsibility initiatives, integrating sustainable development into daily operations[93] - The group emphasizes strict food quality monitoring and has received multiple certifications, including HACCP and ISO standards[80] Financial Position - As of September 30, 2023, the company had cash and cash equivalents amounting to HKD 591,092,000 and total bank credit facilities of HKD 2,715,755,000, with 35% utilized[107] - The company's debt-to-equity ratio stood at 78% as of September 30, 2023, indicating a significant reliance on bank borrowings[107]

Financial Performance - The Group's consolidated revenue for the year ended March 31, 2023, was HK$4,150,886,000, a decrease from HK$4,729,976,000 in 2022, representing a decline of approximately 12.2%[14]. - Profit attributable to equity holders of the Company was HK$40,732,000, up from HK$12,634,000 in the previous year, indicating a significant increase of 222.5%[14]. - Gross profit decreased by HK$58,244,000, from HK$937,558,000 to HK$879,314,000, representing a decrease of 6.2%[72]. - EBITDA for the year was HK$129,624,000, down from HK$157,496,000, a decrease of 17.7%[72]. - The net profit margin improved to 1.0% from 0.3%[71]. - The Group's financial performance reflects a strategic focus on improving profitability despite a decline in revenue[72]. Revenue Breakdown - Sales from the Hong Kong segment amounted to HK$1,831,336,000, accounting for 44% of total sales, showing stability despite pandemic impacts[21]. - Sales in Mainland China were HK$750,532,000, down from HK$929,929,000 in 2022, representing a decrease of approximately 19.2%[22]. - Revenue from Japan was HK$1,569,018,000, a decrease of 19.7% from HK$1,956,089,000 in 2022, accounting for 38% of the Group's total revenue[23][26]. - Revenue from Hong Kong was HK$1,831,336,000, a slight decrease of 0.6% from HK$1,843,958,000 in 2022, representing 44% of the Group's total revenue[24]. - Revenue from Mainland China was HK$750,532,000, a significant decrease of 19.3% from HK$929,929,000 in 2022, accounting for 18% of the Group's total revenue[25]. Strategic Initiatives - The Group's strategy includes leveraging the acquisition of Miyata Co., Ltd. to expand its product offerings in Hong Kong and Mainland China, while also entering the Japanese market[10]. - The Group aims for stable yet progressive growth while maintaining operational stability amidst inflation and rising business costs[9]. - Following the full acquisition of Miyata, the Group will invest more resources in the Japanese market, utilizing synergies to drive business growth[58]. - The Group plans to expand its presence in the Mainland market, capitalizing on the expected GDP growth of 5% and the development of the Guangdong-Hong Kong-Macao Greater Bay Area[57]. Product and Market Development - The Group has diversified its food distribution portfolio, including staples like Japanese eggs, milk, tofu, and rice, contributing to long-term growth[30][33]. - The Group's retail outlets, such as "Okashi Land" and "Miyata Store," have expanded their offerings to include staple foods, attracting more consumers and gaining long-term patrons[41]. - The Group's products are now sold on major e-commerce platforms such as Taobao, Tmall, and JD.com, leveraging online sales strategies to boost market share in Mainland China[44]. - The Group aims to maintain its leading position in Hong Kong's food distribution and retail sectors while introducing more Japanese food varieties to increase market share[52]. Community and Corporate Social Responsibility - The Group's commitment to community development and public welfare during the pandemic has been recognized, enhancing its brand image[46]. - The Group actively participates in community services and supports various charitable activities, providing food products to organizations such as schools and youth programs[120]. - The Group has received multiple awards for outstanding sales performance and corporate social responsibility, reflecting its strong reputation in the market[47]. Operational Efficiency - The cost of sales as a percentage of revenue increased in the second half of the year, impacting overall profitability due to a lag in raising product prices[15]. - The Group has implemented environmental measures, including water management and energy efficiency improvements, to enhance sustainability in operations[104]. - The Group has a stringent supplier selection process to mitigate supply chain risks, ensuring the stability and quality of food materials[122]. Employee and Governance - The total number of employees as of March 31, 2023, was approximately 2,800, with remuneration packages structured based on market terms and individual qualifications[97]. - The Group recognizes the importance of employee development and retention, offering performance-based bonuses and training programs[110]. - The Group has been awarded the "Good MPF Employer" for eight consecutive years, reflecting its commitment to employee welfare[111]. Financial Position - The Group's cash and cash equivalents stood at HK$735,180,000 as of March 31, 2023, with banking facilities of HK$2,929,826,000, of which 37% had been utilized[87]. - The Group's gearing ratio was 86% as of March 31, 2023, indicating a high level of bank borrowings relative to equity[87]. - Total assets as of 31 March 2023 were HK$3,244,070, a decrease from HK$3,352,241 in 2022[139]. - Total liabilities were HK$1,939,188, slightly reduced from HK$1,981,552 in the previous year[139]. Shareholder Information - The Company has reserves available for cash distribution amounting to HK$280,795,000, with HK$24,974,000 proposed as a final dividend[149]. - The Company repurchased a total of 36,000 shares during the year, with an aggregate consideration of HK$92,000[145]. - The repurchase aimed to enhance the net asset value per share and earnings per share for the benefit of shareholders[146].

Financial Performance - Other income for 2023 was HKD 30,477,000, a decrease of 10.5% from HKD 33,729,000 in 2022[3] - Bank interest income increased significantly to HKD 4,789,000 in 2023 from HKD 656,000 in 2022[3] - The group's pre-tax profit was impacted by a tax refund of HKD 32,300,000 received from the Japanese tax authority, which was not present in 2022[6] - Revenue for the year ended March 31, 2023, was HKD 4,150,886 thousand, a decrease of 12.2% from HKD 4,729,976 thousand in 2022[37] - Gross profit for the same period was HKD 879,314 thousand, down from HKD 937,558 thousand, reflecting a gross margin of approximately 21.2%[37] - Net profit for the year was HKD 43,358 thousand, significantly up from HKD 19,812 thousand in the previous year, representing a year-over-year increase of 118.5%[38] - Basic and diluted earnings per share attributable to ordinary equity holders was HKD 10.6 cents, compared to HKD 3.3 cents in the prior year[37] - The company reported a net comprehensive loss of HKD 28,541 thousand for the year, contrasting with a comprehensive income of HKD 40,966 thousand in 2022[46] - Other comprehensive loss for the year, after tax, was HKD 71,899 thousand, compared to a gain of HKD 21,154 thousand in the previous year[70] - The company experienced a foreign exchange loss of HKD 68,692 thousand related to overseas operations, compared to a gain of HKD 25,003 thousand in the previous year[39] Revenue Breakdown - Revenue from the Japan region for 2023 was HKD 1,569,018,000, a decline of 19.8% from HKD 1,956,089,000 in 2022[19] - Revenue from the Hong Kong market was HKD 1,831,336,000 in 2023, slightly down from HKD 1,843,958,000 in 2022, accounting for 44% of total revenue[134] - Revenue from mainland China decreased to HKD 750,532,000 in 2023 from HKD 929,929,000 in 2022, reflecting a decline of approximately 19.2%[113] - Revenue from Japan was HKD 1,569,018,000 in 2023, down from HKD 1,956,089,000 in 2022, indicating a decrease of about 19.8%[113] Assets and Liabilities - Non-current liabilities decreased to HKD 187,102 thousand from HKD 347,463 thousand, indicating a reduction of 46.1%[50] - The net asset value of the company as of March 31, 2023, was HKD 1,304,882 thousand, down from HKD 1,370,689 thousand in 2022[50] - Non-current assets decreased from HKD 1,407,100,000 in 2022 to HKD 1,308,900,000 in 2023, representing a decline of approximately 7%[73] - Current assets decreased from HKD 1,945,141,000 in 2022 to HKD 1,752,086,000 in 2023, a reduction of about 10%[73] - Total equity attributable to owners decreased from HKD 1,370,689,000 in 2022 to HKD 1,304,882,000 in 2023, a decrease of about 5%[74] - The company’s total liabilities increased from HKD 1,634,089,000 in 2022 to HKD 1,935,170,000 in 2023, an increase of approximately 18%[73] - The company’s net current assets decreased from HKD 311,052,000 in 2022 to HKD 183,084,000 in 2023, a decline of about 41%[73] Operational Strategy - The group plans to expand its market presence in mainland China, leveraging its advantages and actively developing its own brand[28] - The group operates 17 factories in Hong Kong and mainland China, focusing on a one-stop production and sales strategy to maintain its industry leadership[34] - The group has adopted a dual online and offline business strategy to enhance sales and increase market share in mainland China[24] - The group anticipates long-term growth potential in the mainland market, with GDP growth expected to reach 5%[28] - The company plans to continue focusing on market expansion and new product development to drive future growth[62] Cost Management - The company faced rising operational costs due to inflation and interest rate hikes, impacting profit margins throughout the year[131] - The company plans to adjust product prices to counteract increased sales costs, which have risen as a percentage of revenue[133] - The group plans to adjust product prices to offset rising costs due to inflation while continuing to control production, sales, and administrative costs[169] Corporate Actions - The company declared an interim dividend of HKD 3.0 per share, consistent with the previous year, totaling HKD 11,528[96] - The group has proposed a final dividend of HKD 0.065 per share, maintaining the total dividend for the fiscal year at HKD 0.095 per share[155] - In January 2023, the company repurchased 6,000 shares at a maximum price of HKD 2.42, totaling HKD 14,000[193] - In February 2023, the company repurchased 30,000 shares at a maximum price of HKD 2.60, totaling HKD 78,000[193] - All repurchased shares have been cancelled, reducing the issued share capital accordingly[193] Market Expansion and Product Development - The group has fully acquired the Japanese snack and candy distributor, Miyata Co., Ltd., to enhance business expansion and synergy[158] - The group aims to maintain its market leadership in Hong Kong's food agency and retail sectors while increasing market share by introducing more Japanese products[143] - The group plans to leverage its extensive distribution network to strengthen cross-brand and sales channel synergies[143] - The group will continue to introduce more products from Miyata to meet customer demands in Hong Kong and mainland China[158] - The group has diversified its food agency business by introducing products such as Japanese eggs, milk, tofu, and rice, which have received positive market feedback[164] - The group has developed a new ice cream product under the "Miyata" brand, which has been well-received in the Hong Kong market, showcasing the synergy from the acquisition of Miyata[164] - The group is the largest importer of ice cream products from Japan to Hong Kong, significantly benefiting its food agency business in the region[164] - The company aims to source more Japanese food products through Miyata's procurement network for the Hong Kong and mainland markets, supporting long-term development[191] Employee and Community Engagement - The group operates approximately 2,800 employees, with salaries reviewed annually based on performance and market conditions[173] - The group has committed to corporate social responsibility initiatives, focusing on community development and youth affairs during the pandemic[142] - The group has received multiple awards for outstanding sales performance, including recognition from 7-Eleven and the Hong Kong Council of Social Service[188] Acknowledgments - The audit committee consists of three independent non-executive directors, overseeing accounting policies and financial reporting matters[197] - The company expresses gratitude to shareholders and business partners for their continuous support throughout the reporting year[200]

Financial Performance - Revenue for the six months ended September 30, 2022, was HK$2,112,609, a decrease of 10.2% compared to HK$2,353,839 in 2021[4] - Gross profit for the same period was HK$489,242, representing a slight increase of 0.4% from HK$487,165 in 2021[4] - Profit before tax increased to HK$46,592, up 29.4% from HK$36,018 in the previous year[4] - Profit for the period was HK$60,673, significantly higher than HK$23,435 in 2021, marking a year-on-year increase of 158.5%[5] - Earnings per share attributable to ordinary equity holders rose to HK15.2 cents, compared to HK4.0 cents in the previous year[4] - Total comprehensive loss for the period was HK$50,109, contrasting with a total comprehensive income of HK$37,961 in the previous year[5] - Profit before tax for the six months ended September 30, 2022, was HK$46,592,000, an increase from HK$36,018,000 in the same period of 2021, representing a growth of 29.0%[17] - Net cash flows from operating activities rose to HK$146,440,000 for the six months ended September 30, 2022, compared to HK$121,054,000 in the prior year, an increase of 21.0%[17] - Total comprehensive loss for the period was HK$51,166,000, compared to a total comprehensive income in the previous period[11] Assets and Liabilities - Total non-current assets decreased to HK$1,277,525 from HK$1,407,100 as of March 31, 2022[7] - Current assets totaled HK$1,913,755, a slight decrease from HK$1,945,141 as of March 31, 2022[7] - Total current liabilities increased to HK$1,684,404,000 as of September 30, 2022, compared to HK$1,634,089,000 on March 31, 2022, reflecting a rise of 3.5%[9] - Net current assets decreased to HK$229,351,000 from HK$311,052,000, indicating a decline of 26.3%[9] - Total equity attributable to equity holders of the Company decreased to HK$1,266,140,000 as of September 30, 2022, down from HK$1,342,283,000, a reduction of 5.7%[9] - Total liabilities as of September 30, 2022, were HK$1,895,677,000, an increase from HK$1,981,552,000 as of March 31, 2022[49] Cash Flow and Financing - Cash and cash equivalents increased to HK$656,581 from HK$611,220, reflecting improved liquidity[7] - Net cash flows used in financing activities amounted to HK$50,183,000, a significant increase from HK$24,682,000 in the previous year, representing a rise of approximately 103.5%[19] - Cash and cash equivalents at the end of the period reached HK$656,581,000, compared to HK$638,708,000 at the end of the previous year, showing a growth of about 2.9%[19] - Cash and bank balances decreased to HK$490,532,000 from HK$578,559,000, reflecting a decline of approximately 15.2%[19] - The total non-current liabilities decreased to HK$211,273,000 from HK$347,463,000, a significant reduction of 39.2%[9] Segment Performance - Total revenue for the six months ended September 30, 2022, was HK$2,112,609,000, with segment revenues from Hong Kong, Mainland China, and Japan being HK$949,571,000, HK$534,307,000, and HK$804,919,000 respectively[41] - The Hong Kong segment reported a profit before tax of HK$59,329,000, while the Mainland China and Japan segments reported profits of HK$5,692,000 and HK$1,681,000 respectively, totaling HK$66,702,000[41] - Revenue from Hong Kong increased slightly to HK$928,500,000, up from HK$921,312,000, while revenue from Mainland China decreased to HK$420,386,000 from HK$474,068,000[51] - Revenue from Japan decreased to HK$763,723,000 from HK$958,459,000, reflecting a decline of 20.4%[51] Corporate Governance and Compliance - The Company has maintained high standards of corporate governance and complied with the Corporate Governance Code during the review period[192] - The Audit Committee reviewed the unaudited condensed consolidated interim financial statements for the six months ended 30 September 2022[196] - The Company confirmed that all directors complied with the trading standards set out in the code of conduct for the six months ended September 30, 2022[198] - The Company published its interim results announcement for the six months ended September 30, 2022, on the Hong Kong Exchanges and Clearing Limited website and its own website[197] Strategic Initiatives - The Group aims to expand its market share in mainland China and Japan, laying a foundation for long-term development[129] - The Group plans to promote international food e-commerce in Mainland China through platforms like Taobao and Tmall, targeting growth in the Japanese food market[140] - The acquisition of Miyata has enhanced synergies and laid a foundation for business expansion, particularly in sourcing Japanese essential food products[117] - The Group launched Miyata Ice Cream in the Hong Kong market, which has gained a larger market share in the ice cream sector[117] Employee and Shareholder Information - The total number of employees as of September 30, 2022, was approximately 2,800, with remuneration packages structured based on market terms and individual qualifications[164] - As of September 30, 2022, Tai Tak Fung, Stephen held a long position of 259,478,000 shares, representing 67.52% of the Company’s total issued shares[168] - The Company had no outstanding share options at the beginning and end of the review period, and no share options were granted during the period[192]