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佈之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本公佈全部或 任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 ASIA CASSAVA RESOURCES HOLDINGS LIMITED 亞洲木薯資源控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：841） 股東週年大會通告 茲通告 亞 洲 木 薯 資 源 控 股 有 限 公 司（「本公司」）謹 訂 於 二 零 二 五 年 九 月 二 十 六 日 上 午十一時正假座香港九龍尖沙咀麽地道63號好時中心11樓1109室舉行股東週年大 會，藉以處理以下事項： – 1 – – 3 – (iv) 就本決議案而言： (aa) 「有 關 期 間」指 本 決 議 案 獲 通 過 當 日 至 下 列 最 早 發 生 時 間 止 期 間： (A) 本公司下屆股東週年大會結束； (B) 組織章程細則、開曼群島法例第22章 公 司 法（一 九 六 一 年 第 三 冊，經 綜 合 及 修 訂）或 開 曼 群 島 任 何 適 用 法 例 規 定 本 公司須舉行下屆股東週年大會之 ...

此乃要件 請即處理 閣下如 對本通函任何方面或應採取之行動 有任何疑問，應諮詢股票經紀或其他註 冊證券交易商、銀行經理、律師、專業會計師或其他專業顧問。 閣下如已 將名下亞洲木薯資源控股有限公司股份全部 售出或轉讓，應立即將本通 函及隨附之代表委任表格送交買方或承讓人，或經手買賣或轉讓之銀行、股票經 紀或其他代理商，以便轉交買方或承讓人。 香港交易及結算所有限公司以及香港聯合交易所有限公司對本通函之內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示概不就因本通函全部或 任何部分內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 ASIA CASSAVA RESOURCES HOLDINGS LIMITED 亞洲木薯資源控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：841） 發行及購回股份之一般授權、 重選董事 及 股東週年大會通告 亞洲木薯資源控股有限公司謹訂於二零二五年九月二十六日上午十一時正假座香 港九龍尖沙咀麽地道63號好時中心11樓1109室舉行股東週年大會，大會通告載於 本通函第11至15頁。 無論 閣下可否親身出席大會，務請按照隨附代表委任表格印列之指示填妥表格， ...

Asia Cassava Resources Holdings Limited 亞洲木薯資源控股有限公司 (於開曼群島註冊成立之有限公司) (股份代號: 841) 環境、社會及管治報告 2025 環境、社會及管治報告 關於本集團 亞洲木薯資源控股有限公司（「本公司」）及其子公司（統稱「本集團」或「我們」）之主要業務為在東南亞國家採購乾木薯片，並在中國大陸 及泰國銷售乾木薯片，在中國大陸及香港經營酒店及服務式公寓及物業投資業務。 關於本報告 環境、社會及管治報告闡述本集團在截至二零二五年三月三十一日止年度內支持可持續發展原則的各項工作，以及在管治方面的表 現。 報告中的所有資料均為本集團於二零二四年四月至二零二五年三月在環境保護和社會關懷方面的績效。 董事會聲明 本公司董事會（「董事會」）全面負責監督及釐定會影響本集團的環境、社會及與氣候相關的風險及機遇、制定及採納本集團的環境，社 會及管治政策及目標以及每年根據環境、社會及管治目標檢討本集團的表現。如發現集團表現與目標有明顯差距，則修訂環境，社會 及管治策略（如適用）。 環境、社會及管治工作委員會協助董事會處理以下事務：執行協定的環境、社會及管治政策、目標及策 ...

[Management Discussion and Analysis](index=2&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review](index=3&type=section&id=Business%20Review) The Group's core dried cassava chip revenue decreased by 18.2% this year due to global high interest rates and a weaker China recovery, with hotel income also declining - The Group's core business involves sourcing dried cassava chips in Southeast Asia for sale in China, alongside operating hotel and serviced apartment businesses[5](index=5&type=chunk) Revenue Performance by Business Segment | Business Segment | FY2025 Revenue (HKD) | FY2024 Revenue (HKD) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sourcing and Sale of Dried Cassava Chips | Approx. 960.5 million | Approx. 1,173.6 million | -18.2% | | Hotel and Serviced Apartments | Approx. 13 million | Approx. 14.8 million | -12.2% | - The decline in dried cassava chip revenue was primarily due to the sluggish economic recovery in mainland China and weak alcohol demand influenced by electric vehicle penetration[6](index=6&type=chunk) [Financial Review of Audited Results](index=3&type=section&id=Financial%20Review%20of%20Audited%20Results) Total revenue decreased by 18.2% to **978 million HKD**, gross margin fell to 6.6% due to logistics changes, and the annual loss expanded to **131 million HKD**, impacting net assets and capital gearing Key Financial Indicators for FY2025 | Indicator | FY2025 | FY2024 | Reason for Change | | :--- | :--- | :--- | :--- | | Total Revenue | 978 million HKD | 1,193 million HKD | Decrease in average selling price of dried cassava chips and reduced hotel revenue | | Dried Cassava Chip Gross Profit Margin | 6.6% | 11.3% | Change in customer logistics terms from C&F to FOB | | Selling and Distribution Costs | 36.7 million HKD | 113 million HKD | Change in customer contract terms, with customers bearing ocean freight costs | | Administrative Expenses | 128 million HKD | 99.7 million HKD | Increased impairment losses on right-of-use assets and hotel business | | Loss for the Year (Attributable to Owners) | 131 million HKD | 111 million HKD | Decreased revenue and increased asset impairment | | Capital Gearing Ratio | 51.8% | 39.0% | Increase in trade-related bank borrowings and asset impairment | | Inventory Turnover Days | 124.7 days | 117.1 days | Strategic inventory stocking to meet future demand | - As of March 31, 2025, the Group had approximately **220 employees**, with total annual staff costs of approximately **19.4 million HKD**[18](index=18&type=chunk) [Outlook](index=5&type=section&id=Outlook) The Group aims to consolidate its dried cassava chip leadership by expanding procurement in Southeast Asia, while diversifying into cassava starch manufacturing in Laos by late 2025 to reduce China market reliance - China's policy of encouraging non-grain based biofuel production remains unchanged, providing a continuous market foundation for the Group's dried cassava chip business[22](index=22&type=chunk) - The Group is expanding its procurement network in Thailand, Laos, and Cambodia to achieve economies of scale, reduce unit costs, and improve gross profit margins[22](index=22&type=chunk) - To expand into downstream industries and diversify markets, the Group has established a subsidiary in Laos for cassava starch manufacturing and processing, expected to commence production by the end of 2025, aiming to gradually reduce reliance on the Chinese market[23](index=23&type=chunk) [Directors and Senior Management](index=5&type=section&id=Directors%20and%20Senior%20Management) [Board of Directors](index=6&type=section&id=Board%20of%20Directors) The Board comprises three executive and three independent non-executive directors, with executive directors focusing on strategy and operations, and independent directors providing diverse professional expertise Board of Directors Composition | Name | Position | Key Responsibilities/Background | | :--- | :--- | :--- | | **Executive Directors** | | | | Mr. Chu Ming Chuen | Chairman | Formulating Group strategy and overall development | | Ms. Liu Yuk Ming | Executive Director | Formulating marketing strategies and daily operations | | Ms. Lam Ching Fun | Executive Director | Logistics systems, vessel chartering business management | | **Independent Non-Executive Directors** | | | | Ms. Amporn Lohathanulert | Independent Non-Executive Director | Bachelor of Mass Communication, with insurance industry experience | | Mr. Hung Sze Kit | Independent Non-Executive Director | Business administration professional, with government and corporate management experience | | Mr. Chui Chi Yan | Independent Non-Executive Director | Hong Kong practicing accountant, with over 35 years of accounting experience | [Senior Management](index=7&type=section&id=Senior%20Management) The senior management team, composed of experienced professionals in administration, finance, and China operations, is responsible for the Group's daily management and business execution, leveraging their extensive industry expertise Senior Management Members | Name | Position | Key Responsibilities | | :--- | :--- | :--- | | Ms. Wu Ni Na | Head of Administration and Human Resources | Responsible for Group administration and human resources | | Mr. Shum Sing Kee | Chief Financial Officer and Company Secretary | Responsible for the company's financial functions and financial management | | Ms. Zhu Ling Ling | Deputy Financial Controller | Responsible for overall oversight of the accounting department | | Mr. Wang Dong Dai | General Manager of Rizhao Yushun | Overseeing Rizhao Yushun's daily management and mainland China operations | | Ms. Jiang Ting | Deputy General Manager of Rizhao Yushun | Responsible for analysis of China's cassava market information and customer relations | [Report of the Directors](index=7&type=section&id=Report%20of%20the%20Directors) [Principal Activities and Results](index=8&type=section&id=Principal%20Activities%20and%20Results) The Group's main activities include dried cassava chip trade, hotel operations, and property investment; it recorded a loss for the year ended March 31, 2025, with no final dividend recommended - The Group's principal activities include sourcing dried cassava chips in Southeast Asia for sale in China, and operating hotels, serviced apartments, and property investments in China and Hong Kong[34](index=34&type=chunk) - No interim dividend was distributed for the current year, and the Board recommends no final dividend be paid[36](index=36&type=chunk) [Major Customers and Suppliers](index=9&type=section&id=Major%20Customers%20and%20Suppliers) The Group experienced high customer concentration this year, with the top five customers accounting for 68% of sales, while its supplier base was more diversified, with the top five suppliers accounting for less than 29% of purchases Customer and Supplier Concentration | Category | Percentage (FY2025) | Percentage (FY2024) | | :--- | :--- | :--- | | Sales to Top Five Customers | 68% | 79% | | Sales to Largest Customer | 31% | 33% | | Purchases from Top Five Suppliers | <29% | 43% | | Purchases from Largest Supplier | 19% | 27% | [Directors' and Major Shareholders' Interests in Shares](index=10&type=section&id=Directors'%20Interests%20in%20Shares) As of March 31, 2025, Chairman Mr. Chu Ming Chuen held approximately **61.66%** of the Company's issued share capital directly and through controlled corporations, with Fortune Art Management Limited directly holding **38.48%** Major Shareholder Holdings (as of March 31, 2025) | Shareholder Name | Capacity and Nature of Interest | Number of Ordinary Shares Held | Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Fortune Art Management | Directly Beneficially Owned | 225,000,000 | 38.48% | | Mr. Chu Ming Chuen | Directly Beneficially Owned | 135,520,715 | 23.18% | | | Through Controlled Corporations | 225,000,000 | 38.48% | | | **Total** | **360,520,715** | **61.66%** | [Continuing Connected Transactions](index=12&type=section&id=Continuing%20Connected%20Transactions) The Group engaged in continuing connected transactions this year, mainly leasing office and staff quarters from entities controlled by Chairman Mr. Chu and his spouse, which independent non-executive directors confirmed were on normal commercial terms - The Group leased office premises from Ya Fat Property Limited, controlled by Chairman Mr. Chu, with an annual rent of **0.574 million HKD**[63](index=63&type=chunk) - The Group leased staff quarters from Wealthy Yield Property Limited, controlled by Chairman's spouse Ms. Chu, with a monthly rent of **0.058 million HKD**[64](index=64&type=chunk) [Corporate Governance Report](index=13&type=section&id=Corporate%20Governance%20Report) [Corporate Governance Practices](index=14&type=section&id=Corporate%20Governance%20Practices) The Company generally complied with the Corporate Governance Code, but deviated by having the Chairman concurrently perform CEO functions, with the executive director team collectively overseeing management - During the reporting period, the Company deviated from the Corporate Governance Code as the roles of Chairman and Chief Executive Officer were assumed by the same individual (Chairman Mr. Chu Ming Chuen), and no separate CEO position was established[73](index=73&type=chunk) [Board and Board Committees](index=14&type=section&id=Board%20and%20Board%20Committees) The Board, responsible for strategy and oversight, held four meetings and established Audit, Remuneration, and Nomination Committees, all composed of independent non-executive directors, to ensure independent oversight of financial reporting, remuneration, and nominations - The Board of Directors comprises three executive directors and three independent non-executive directors, complying with Listing Rules requirements[79](index=79&type=chunk)[80](index=80&type=chunk) - The Board has established an Audit Committee, a Remuneration Committee, and a Nomination Committee, all composed of independent non-executive directors[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk)[91](index=91&type=chunk) - The Company has adopted a Board Diversity Policy, aiming to enhance Board performance by considering multiple factors such as skills, experience, background, age, and gender[93](index=93&type=chunk)[94](index=94&type=chunk) [Accountability and Audit](index=18&type=section&id=Accountability%20and%20Audit) The Board is responsible for fair financial statements, with the Audit Committee assisting in oversight; **1.83 million HKD** was paid to Ernst & Young for audit services this year Auditor's Fees | Service Type | Fees (HKD '000) | | :--- | :--- | | Annual Audit Services | 1,830 | [Shareholders' Rights](index=19&type=section&id=Shareholders'%20Rights) The Company facilitates shareholder-Board communication via general meetings, allowing shareholders holding at least 10% of paid-up capital to request an extraordinary general meeting in writing - Shareholders holding not less than one-tenth of the Company's paid-up share capital have the right to request the Board to convene an extraordinary general meeting in writing[105](index=105&type=chunk) [Independent Auditor's Report](index=20&type=section&id=Independent%20Auditor's%20Report) [Auditor's Opinion](index=21&type=section&id=Auditor's%20Opinion) Auditor Ernst & Young issued an unmodified opinion, confirming the consolidated financial statements fairly present the Group's financial position, performance, and cash flows as of March 31, 2025, in compliance with Hong Kong Companies Ordinance - Auditor Ernst & Young issued an unmodified opinion on the consolidated financial statements[110](index=110&type=chunk) [Key Audit Matters](index=21&type=section&id=Key%20Audit%20Matters) The key audit matter was the fair value estimation of a Hong Kong commercial building, involving significant management judgment, which the auditor addressed by reviewing external valuations and assessing methodologies and assumptions - The key audit matter is the estimation of the fair value of a commercial building located in Hong Kong. This building is partly classified as investment property and partly as property, plant and equipment, collectively accounting for approximately **73%** of total non-current assets[112](index=112&type=chunk)[114](index=114&type=chunk) - The auditor's responses included reviewing external valuation reports, utilizing internal valuation experts to assess valuation methodologies and assumptions, evaluating the independence and competence of external valuers, and assessing related disclosures[118](index=118&type=chunk) [Consolidated Financial Statements](index=24&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=25&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) For FY2025, revenue decreased to **978 million HKD**, and the annual loss expanded to **168 million HKD** due to reduced income and fair value losses, resulting in a **131 million HKD** loss attributable to owners and **22.36 HK cents** basic loss per share Key Consolidated Income Statement Data (HKD '000) | Indicator | FY2025 (HKD '000) | FY2024 (HKD '000) | | :--- | :--- | :--- | | Revenue | 977,903 | 1,193,032 | | Gross Profit | 81,150 | 152,041 | | Loss Before Tax | (162,045) | (139,790) | | Loss for the Year | (168,021) | (149,019) | | **Loss Attributable to Owners of the Company** | **(130,721)** | **(111,360)** | | Basic and Diluted Loss Per Share | (22.36 HK cents) | (19.04 HK cents) | [Consolidated Statement of Financial Position](index=26&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of March 31, 2025, net assets decreased to **349 million HKD**, with total assets at **1,697 million HKD** and liabilities at **1,347 million HKD**, leading to a **332 million HKD** net current liability due to increased current borrowings Key Consolidated Statement of Financial Position Data (HKD '000) | Indicator | March 31, 2025 (HKD '000) | March 31, 2024 (HKD '000) | | :--- | :--- | :--- | | Non-current Assets | 984,372 | 1,050,248 | | Current Assets | 712,354 | 417,291 | | **Total Assets** | **1,696,726** | **1,467,539** | | Current Liabilities | 1,044,633 | 285,432 | | Non-current Liabilities | 302,611 | 698,156 | | **Total Liabilities** | **1,347,244** | **983,588** | | **Net Assets** | **349,482** | **483,951** | | **Total Equity** | **349,482** | **483,951** | [Consolidated Statement of Cash Flows](index=29&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The Group experienced a **204 million HKD** net cash outflow from operations, a **79.31 million HKD** outflow from investing, and a **290 million HKD** inflow from financing, resulting in a **6.25 million HKD** net increase in cash and equivalents to **57.8 million HKD** at year-end Key Consolidated Cash Flow Statement Data (HKD '000) | Indicator | FY2025 (HKD '000) | FY2024 (HKD '000) | | :--- | :--- | :--- | | Net Cash Flows From/(Used in) Operating Activities | (204,292) | 251,040 | | Net Cash Flows Used in Investing Activities | (79,309) | (55,522) | | Net Cash Flows From/(Used in) Financing Activities | 289,852 | (408,193) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 6,251 | (212,675) | | Cash and Cash Equivalents at End of Year | 57,804 | 49,424 | [Notes to the Financial Statements (Summary)](index=30&type=section&id=Notes%20to%20the%20Financial%20Statements) The notes detail accounting policies and estimates, highlighting a **332 million HKD** net current liability due to reclassified bank loans, though management deems going concern appropriate; segment data shows declining dried cassava chip performance and losses in property and hotel segments - The Group had net current liabilities of **332 million HKD** at the end of the reporting period, primarily due to **879 million HKD** in interest-bearing bank loans reclassified as current liabilities due to covenant breaches. Management has taken measures (such as obtaining waivers, repaying part of the loans, and securing new loans from the controlling shareholder) to alleviate liquidity pressure and believes the company can continue as a going concern[143](index=143&type=chunk)[144](index=144&type=chunk)[146](index=146&type=chunk) Segment Results Summary (HKD '000) | Segment | FY2025 Revenue (HKD '000) | FY2025 Results (HKD '000) | FY2024 Revenue (HKD '000) | FY2024 Results (HKD '000) | | :--- | :--- | :--- | :--- | :--- | | Sourcing and Sale of Dried Cassava Chips | 960,498 | 5,955 | 1,173,577 | 16,915 | | Property Investment | 4,361 | (49,402) | 4,650 | (57,796) | | Hotel and Serviced Apartment Operations | 13,044 | (26,945) | 14,805 | (26,604) | - Due to deteriorating hotel operations and a subdued Hong Kong property market, the Group recognized impairment losses of **26.17 million HKD** on property, plant and equipment, and fair value change losses of **53.76 million HKD** on investment properties[127](index=127&type=chunk)[263](index=263&type=chunk) - Subsequent to the reporting period, in June 2025, the Group drew down an interest-bearing loan of **220 million HKD** from its controlling shareholder to support working capital[337](index=337&type=chunk) [Details of Properties Held by the Company](index=85&type=section&id=Details%20of%20Properties%20Held%20by%20the%20Company) [Property Portfolio Overview](index=86&type=section&id=Property%20Portfolio%20Overview) The Group holds a diversified property portfolio across Hong Kong, mainland China, Thailand, and Laos, including office, industrial, warehouse, and residential properties, supporting both core operations and investment - The Group holds multiple office properties and parking spaces in Hong Kong, including locations at Houston Centre and Connaught Place in Tsim Sha Tsui[339](index=339&type=chunk) - In mainland China, the Group holds industrial buildings in Shenzhen and staff quarters in Shandong[340](index=340&type=chunk) - In Thailand and Laos, the Group holds properties such as warehouses, office buildings, residential units, and industrial buildings to support its Southeast Asian sourcing and production operations[340](index=340&type=chunk) [Financial Summary](index=87&type=section&id=Financial%20Summary) [Five-Year Financial Data](index=88&type=section&id=Five-Year%20Financial%20Data) Five-year data shows revenue declining for two years post-2023 peak, with losses expanding for three consecutive years since 2022 profitability, and net assets continuously decreasing since 2022 Five-Year Performance Summary (HKD '000) | Year Ended March 31 | 2025 (HKD '000) | 2024 (HKD '000) | 2023 (HKD '000) | 2022 (HKD '000) | 2021 (HKD '000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 977,903 | 1,193,032 | 3,969,276 | 3,585,019 | 2,715,508 | | Profit/(Loss) Before Tax | (162,045) | (139,790) | (115,003) | 58,346 | (52,796) | | Profit/(Loss) for the Year | (168,021) | (149,019) | (144,586) | 34,490 | (48,496) | Five-Year Assets and Liabilities Summary (HKD '000) | As of March 31 | 2025 (HKD '000) | 2024 (HKD '000) | 2023 (HKD '000) | 2022 (HKD '000) | 2021 (HKD '000) | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Assets | 1,696,726 | 1,467,539 | 2,041,779 | 2,920,781 | 2,670,395 | | Total Liabilities | (1,347,244) | (983,588) | (1,379,229) | (2,087,871) | (1,869,610) | | **Net Assets** | **349,482** | **483,951** | **662,550** | **832,910** | **800,785** | [Company Information](index=88&type=section&id=Company%20Information) - The Company's stock code is **841**, listed on the Stock Exchange of Hong Kong Limited[346](index=346&type=chunk) - The Company's auditor is Ernst & Young[346](index=346&type=chunk) - The Company's registered office is in the Cayman Islands, with its head office and principal place of business located at Houston Centre, Tsim Sha Tsui, Hong Kong[346](index=346&type=chunk)

[Performance Summary](index=1&type=section&id=%E6%91%98%E8%A6%81) The company's revenue decreased by 18.0% to HKD 978 million, with a widened loss attributable to shareholders, and no final dividend proposed [Core Financial Indicators](index=1&type=section&id=%E6%91%98%E8%A6%81-%E6%A0%B8%E5%BF%83%E8%B2%A1%E5%8B%99%E6%8C%87%E6%A8%99) For the year ended March 31, 2025, the company's revenue decreased by 18.0% to HKD 978 million, primarily due to the contraction of the dry cassava chip business, while loss attributable to shareholders widened from HKD 111 million to HKD 131 million, mainly impacted by fair value losses on investment properties and asset impairments, with the Board recommending no final dividend Core Financial Indicators | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Revenue | HKD 978 million | HKD 1,193 million | | Loss Attributable to Shareholders | HKD 131 million | HKD 111 million | | Fair Value Loss on Investment Properties | HKD 53.8 million | HKD 60.1 million | | Impairment of Property, Plant and Equipment | HKD 26.2 million | HKD 25.5 million | | Impairment of Right-of-Use Assets | HKD 8.9 million | Zero | | Final Dividend | Not Distributed | Not Applicable | [Consolidated Financial Statements](index=2&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the company's consolidated financial performance and position, highlighting revenue decline, widened losses, and significant liquidity challenges [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) During the reporting period, the company's revenue was HKD 978 million, an 18.0% year-on-year decrease, with gross profit significantly declining by 46.6% to HKD 81.15 million, leading to an expanded annual loss from HKD 149 million to HKD 168 million due to a HKD 53.76 million fair value loss on investment properties and increased administrative expenses, resulting in a loss attributable to company owners of HKD 131 million and basic loss per share of HKD 22.36 cents Consolidated Statement of Profit or Loss and Other Comprehensive Income | Item (HKD thousands) | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 977,903 | 1,193,032 | -18.0% | | Gross Profit | 81,150 | 152,041 | -46.6% | | Loss Before Tax | (162,045) | (139,790) | +16.0% | | Loss for the Year | (168,021) | (149,019) | +12.8% | | Loss Attributable to Owners of the Company | (130,721) | (111,360) | +17.4% | | Basic Loss Per Share (HK cents) | (22.36) | (19.04) | +17.4% | [Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E5%A0%B1%E8%A1%A8) As of March 31, 2025, the company's total assets were HKD 1.697 billion, total liabilities were HKD 1.347 billion, and net assets decreased by 27.8% from HKD 484 million in the prior year to HKD 349 million, notably, the Group's current liabilities (HKD 1.045 billion) significantly exceeded current assets (HKD 712 million), resulting in a net current liability of HKD 332 million, primarily due to certain bank loans being reclassified as current liabilities due to covenant breaches, indicating significant liquidity risk Consolidated Statement of Financial Position | Item (HKD thousands) | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Non-current Assets | 984,372 | 1,050,248 | | Current Assets | 712,354 | 417,291 | | **Total Assets** | **1,696,726** | **1,467,539** | | **Liabilities and Equity** | | | | Current Liabilities | 1,044,633 | 285,432 | | Non-current Liabilities | 302,611 | 698,156 | | **Total Liabilities** | **1,347,244** | **983,588** | | **Net Assets** | **349,482** | **483,951** | - As of March 31, 2025, the Group's current liabilities exceeded its current assets by **HKD 332.3 million**, primarily due to **HKD 879.4 million** in interest-bearing bank loans being reclassified as current liabilities due to breaches of certain loan covenants[10](index=10&type=chunk) [Notes to the Financial Statements](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides detailed disclosures on the company's operations, accounting policies, segment information, and key financial items, including significant liquidity challenges and management's mitigation plans [Company Information and Basis of Presentation](index=6&type=section&id=2.%20Basis%20of%20Presentation%20and%20Consolidation) The Group primarily engages in the procurement and sale of dry cassava chips, hotel and serviced apartment operations, and property investment, with financial statements prepared on a going concern basis despite significant uncertainties, including net current liabilities of **HKD 332 million** mainly due to **HKD 879 million** in bank loans reclassified as current liabilities due to covenant breaches, for which management has developed a plan including obtaining bank waivers, repaying part of the loans, and securing a new **HKD 220 million** loan from the controlling shareholder to alleviate liquidity pressure - The Group's principal activities include the procurement of dry cassava chips in Southeast Asian countries, the sale of dry cassava chips in mainland China and Thailand, the operation of hotels and serviced apartments in mainland China and Hong Kong, and property investment[10](index=10&type=chunk) - The Group faces severe liquidity pressure with net current liabilities reaching **HKD 332 million**, and management's countermeasures include: - Obtaining a waiver from the lending bank in June 2025 for covenant breaches on a **HKD 404 million** term loan[10](index=10&type=chunk)[11](index=11&type=chunk) - Repaying all defaulted invoice financing totaling **HKD 351 million**[10](index=10&type=chunk)[11](index=11&type=chunk) - Securing a **HKD 220 million** loan from the controlling shareholder in June 2025[10](index=10&type=chunk)[13](index=13&type=chunk) [Changes in Accounting Policies and Disclosures](index=8&type=section&id=3.%20Changes%20in%20Accounting%20Policies%20and%20Disclosures) This year, the Group first applied revised Hong Kong Financial Reporting Standards concerning sale and leaseback, classification of liabilities, and supplier finance arrangements, and an assessment concluded that these changes had no significant impact on the Group's financial position or performance - The Group first applied several revised Hong Kong Financial Reporting Standards this year, including HKFRS 16 (Sale and Leaseback), HKAS 1 (Classification of Liabilities), and HKAS 7 (Supplier Finance Arrangements), and an assessment concluded that these revisions had no impact on the Group's financial position or performance[16](index=16&type=chunk)[19](index=19&type=chunk) [Segment Information](index=9&type=section&id=4.%20Segment%20Information) The Group's operations are divided into three segments: dry cassava chip sales, property investment, and hotel and serviced apartment operations, with dry cassava chip sales being the absolute core revenue driver, contributing **HKD 960 million** in revenue but only **HKD 5.96 million** in segment results, while both property investment and hotel businesses recorded losses of **HKD 49.4 million** and **HKD 26.95 million** respectively, and geographically, **98.5%** of revenue originated from mainland Chinese customers Segment Performance | Segment (HKD thousands) | Revenue (2025) | Segment Results (2025) | Revenue (2024) | Segment Results (2024) | | :--- | :--- | :--- | :--- | :--- | | Dry Cassava Chip Procurement and Sales | 960,498 | 5,955 | 1,173,577 | 16,915 | | Property Investment | 4,361 | (49,402) | 4,650 | (57,796) | | Hotel and Serviced Apartment Operations | 13,044 | (26,945) | 14,805 | (26,604) | | **Total** | **977,903** | **(70,392)** | **1,193,032** | **(67,485)** | Revenue by Region | Region (HKD thousands) | Revenue from External Customers (2025) | Revenue from External Customers (2024) | | :--- | :--- | :--- | | Mainland China | 963,618 | 1,177,362 | | Hong Kong | 14,285 | 15,670 | | **Total** | **977,903** | **1,193,032** | - For the current year, sales to the Group's single largest customer amounted to approximately **HKD 304 million**, accounting for **31.1%** of total revenue[25](index=25&type=chunk) [Revenue, Other Income and Finance Costs](index=13&type=section&id=5.%20Revenue%20and%20Other%20Income) Total revenue was **HKD 978 million**, with **HKD 960 million** from sales of dry cassava and other goods, while other income amounted to **HKD 20.1 million**, primarily including **HKD 14.16 million** from revised income payable to a non-controlling shareholder of a subsidiary, and finance costs increased from **HKD 41.22 million** to **HKD 44.74 million**, mainly due to increased interest payable to a non-controlling shareholder of a subsidiary Revenue Sources | Revenue Source (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Sales of Dry Cassava and Other Goods | 960,498 | 1,173,577 | | Hotel and Serviced Apartments, etc. | 13,044 | 14,805 | | Rental Income | 4,361 | 4,650 | | **Total** | **977,903** | **1,193,032** | Finance Costs | Finance Costs (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Interest on Bank Loans | 29,123 | 29,503 | | Interest Payable to Non-controlling Shareholder of a Subsidiary | 15,613 | 11,715 | | **Total** | **44,736** | **41,218** | [Taxation and Loss Per Share](index=14&type=section&id=9.%20Loss%20Per%20Share%20Attributable%20to%20Owners%20of%20the%20Company) Income tax expense for the current year was **HKD 5.98 million**, lower than **HKD 9.23 million** last year, while basic and diluted loss per share expanded to **HKD 22.36 cents** from **HKD 19.04 cents** last year, reflecting the company's increased loss - Basic loss per share expanded from **HKD 19.04 cents** in the previous year to **HKD 22.36 cents** in the current year[5](index=5&type=chunk)[29](index=29&type=chunk) Income Tax | Income Tax (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Current Tax | 5,742 | 9,112 | | Deferred Tax | 234 | 117 | | **Total** | **5,976** | **9,229** | [Key Balance Sheet Items](index=15&type=section&id=10.%20Trade%20and%20Bills%20Receivable) At the end of the reporting period, trade and bills receivable significantly increased from **HKD 20.08 million** to **HKD 159 million**, with all balances aged within 30 days, concurrently, trade payables also notably increased from **HKD 4.13 million** to **HKD 38.93 million**, with payment terms within one month Trade and Bills Receivable | Item (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Trade and Bills Receivable | 159,156 | 20,077 | Trade Payables | Item (HKD thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Trade Payables | 38,927 | 4,133 | [Events After the Reporting Period](index=16&type=section&id=12.%20Events%20After%20the%20Reporting%20Period) To address liquidity pressure, the Group drew down an interest-bearing loan of **HKD 220 million** from its controlling shareholder and Chairman, Mr. Zhu Mingquan, in June 2025, with repayment linked to the Group's working capital position and the renewal of other loans - In June 2025, the Group drew down a **HKD 220 million** loan from its controlling shareholder at an annual interest rate of HIBOR plus 1.25%, to alleviate working capital pressure[31](index=31&type=chunk) [Management Discussion and Analysis](index=17&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E5%8F%8A%E5%88%86%E6%9E%90) This section provides an overview of the company's operational and financial performance, highlighting challenges in core businesses, changes in financial metrics, and future strategic directions [Business Review](index=17&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Affected by factors such as slower-than-expected economic recovery in mainland China, a high-interest rate environment, and the popularization of electric vehicles, demand for dry cassava chips, a key raw material for alcohol production, remained weak, leading to an 18.2% year-on-year decline in revenue for this core business, while hotel and serviced apartment business revenue also decreased by 12.2% due to unfavorable market conditions - Due to the sluggish economic recovery in mainland China and decreased demand for alcohol products, the Group's core business of procuring and selling dry cassava chips saw its revenue decrease by **18.2%** from **HKD 1.174 billion** to **HKD 961 million**[33](index=33&type=chunk)[34](index=34&type=chunk) - Revenue from hotel and serviced apartment operations decreased by **12.2%** from **HKD 14.8 million** to **HKD 13 million**[34](index=34&type=chunk) [Financial Review](index=17&type=section&id=%E7%B6%93%E5%AF%A9%E8%A8%88%E6%A5%AD%E7%B8%BE%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This year's revenue decreased by **18.0%** to **HKD 978 million**, with gross profit margin significantly falling from **11.3%** to **6.6%**, primarily due to a change in customer logistics terms from Cost and Freight (C&F) to Free On Board (FOB), leading to a decrease in average selling price, consequently, sales and distribution costs sharply decreased by **67.7%**, while administrative expenses increased by **28.5%** due to factors including an **HKD 8.9 million** impairment of right-of-use assets, ultimately, the annual loss attributable to shareholders expanded to **HKD 131 million** - The gross profit margin for the procurement and sale of dry cassava chips decreased from **11.3%** to approximately **6.6%**, mainly due to the change in customer logistics terms from C&F to FOB[35](index=35&type=chunk) - Sales and distribution costs significantly decreased from **HKD 113 million** to **HKD 36.7 million**, primarily because customer contract terms changed from CIF to FOB, transferring ocean freight costs to customers[36](index=36&type=chunk) - Administrative expenses increased from **HKD 99.7 million** to **HKD 128 million**, mainly due to the inclusion of impairment of right-of-use assets (**HKD 8.9 million**), impairment of property, plant and equipment (**HKD 26.2 million**), and impairment of club memberships (**HKD 1.2 million**)[37](index=37&type=chunk) - The annual loss attributable to owners of the Company was approximately **HKD 131 million**, an increase from **HKD 111 million** last year[39](index=39&type=chunk) [Financial Resources and Liquidity](index=19&type=section&id=%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E5%8F%8A%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91) As of the end of the reporting period, the Group's financial position was strained, with net assets decreasing by **27.8%** to **HKD 350 million**, and the capital gearing ratio (borrowings/total assets) sharply rising from **39.0%** to **51.8%**, reflecting increased debt burden and asset value shrinkage, while inventory turnover days increased from **117.1 days** to **124.7 days**, indicating greater inventory management pressure, and accounts receivable turnover days slightly improved from **35.1 days** to **33.4 days** Financial Ratios | Indicator | March 31, 2025 | March 31, 2024 | | :--- | :--- | :--- | | Net Assets | HKD 350 million | HKD 484 million | | Capital Gearing Ratio | 51.8% | 39.0% | | Inventory Turnover Days | 124.7 days | 117.1 days | | Accounts Receivable Turnover Days | 33.4 days | 35.1 days | [Outlook](index=21&type=section&id=%E5%89%8D%E6%99%AF) Looking ahead, the Group plans to continue strengthening its dry cassava chip procurement network in Southeast Asia and expand facilities to achieve economies of scale, and to address downside risks in the Chinese market and diversify its business, the Group has established a joint venture in Laos to enter the higher value-added downstream industry of cassava starch production, with the project expected to commence operations by the end of 2025, aiming to explore export markets beyond China and generate better returns for shareholders - The Group will continue to expand its procurement network in Thailand, Laos, and Cambodia to reduce unit costs and solidify its leading position in the industry[49](index=49&type=chunk) - To achieve industrial diversification and reduce reliance on the Chinese market, the Group has established a joint venture in Laos to develop cassava starch production and sales, with operations expected to commence by the end of 2025[50](index=50&type=chunk) [Other Disclosures](index=21&type=section&id=%E5%85%B6%E4%BB%96%E6%8A%AB%E9%9C%B2%E4%BA%8B%E9%A0%85) This section covers the company's dividend policy and adherence to corporate governance principles, including identified deviations [Dividend Policy](index=21&type=section&id=%E8%82%A1%E6%81%AF) Considering the loss incurred this year and the company's funding requirements, the Board recommends not distributing a final dividend for the year ended March 31, 2025 - The Board recommends not paying a final dividend for the year ended March 31, 2025[51](index=51&type=chunk) [Corporate Governance](index=22&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The company generally complied with the Corporate Governance Code during the reporting period, with one deviation: the roles of Chairman and Chief Executive Officer are not segregated, as Mr. Zhu Mingquan serves as Chairman, while the functions of the Chief Executive Officer are jointly performed by the executive directors, and no Chief Executive Officer has been formally appointed by the company - The company has one corporate governance deviation, where the responsibilities of the Chairman and Chief Executive Officer are not performed by different individuals, with Chairman Mr. Zhu Mingquan providing leadership, and the executive directors jointly performing the functions of the Chief Executive Officer[54](index=54&type=chunk)

Company Overview - Asia Cassava Resources Holdings Limited is an international comprehensive supplier of cassava chips, established in 1984. The company was the largest exporter of cassava chips in Thailand and the largest supplier in China from 2003 to 2014 [4] - The bilateral cassava trade between Thailand and China accounts for two-thirds of the global trade, with Asia Cassava Resources holding over 30% of the trade volume between the two countries [4] - The company has established long-term commercial relationships with over 200 cassava suppliers in Southeast Asia and operates nine warehouses and port facilities in Thailand, with subsidiaries in Cambodia, Laos, and Vietnam [4] Financial Performance - As of September 30, 2024, the company reported total revenue of 405 million yuan, a year-on-year decrease of 47.54% [2] - The net profit attributable to the parent company was -8.15 million yuan, reflecting a year-on-year decrease of 155.09% [2] - The gross profit margin stood at 7.58%, with a debt-to-asset ratio of 63.63% [2] Market Position and Valuation - Currently, there are no institutional investment ratings for the stock [3] - The average price-to-earnings (P/E) ratio for the food and beverage industry is 23.55 times, with a median of 8.41 times. Asia Cassava Resources has a P/E ratio of -0.37 times, ranking 88th in the industry [3] - Comparatively, other companies in the sector have P/E ratios ranging from 4.25 to 5.54 times [3] Recent Stock Performance - On June 12, the Hang Seng Index fell by 1.36%, closing at 24,035.38 points. Asia Cassava Resources' stock closed at 0.098 HKD per share, up 12.64%, with a trading volume of 180,000 shares and a turnover of 15,800 HKD, showing a volatility of 14.94% [1]

Revenue and Profitability - For the six months ended September 30, 2024, the group's revenue from the procurement and sale of cassava chips was approximately HKD 438.7 million, a decrease of about 47.8% compared to HKD 840.9 million in the same period last year[11]. - Revenue for the six months ended September 30, 2024, was HKD 449,210,000, a decrease of 47.5% compared to HKD 856,279,000 in the same period of 2023[46]. - Gross profit for the same period was HKD 34,046,000, down 57.9% from HKD 80,880,000 year-on-year[46]. - The group reported a loss of approximately HKD 9 million for the period, compared to a profit of approximately HKD 16.4 million in the previous year[15]. - The net loss attributable to the owners of the company was HKD 9,038,000, compared to a profit of HKD 16,406,000 in the same period last year[46]. - The company reported a loss before tax of HKD 17,971,000, compared to a profit of HKD 12,957,000 in the previous year[46]. - Total comprehensive loss amounted to HKD 20,523,000, a significant decline from a total comprehensive income of HKD 1,010,000 in the previous year[49]. Costs and Expenses - The cost of sales for cassava chips during this period was approximately HKD 414 million, down about 46.5% from HKD 774 million in the previous year, primarily due to reduced sales volume[12]. - Administrative expenses for the period were approximately HKD 25.8 million, slightly up from HKD 25.4 million in the same period last year[14]. - Financing costs for the period were approximately HKD 15.1 million, compared to HKD 15.2 million in the previous year[15]. - The company incurred a fair value loss on investment properties of HKD 5,780,000, an improvement from HKD 10,218,000 in the prior year[46]. - Administrative expenses increased slightly to HKD 25,809,000 from HKD 25,355,000 year-on-year[46]. Assets and Liabilities - As of September 30, 2024, the net asset value decreased to approximately HKD 463,400,000 from HKD 484,000,000 as of March 31, 2024, primarily due to other comprehensive losses during the period[17]. - Current assets as of September 30, 2024, were approximately HKD 236,000,000, including cash and cash equivalents of HKD 116,300,000, accounts receivable of HKD 15,600,000, and inventory of HKD 26,200,000[17]. - The current liabilities as of September 30, 2024, were approximately HKD 117,100,000, which included accounts payable and accrued expenses of HKD 12,000,000 and tax payable of HKD 97,100,000[17]. - The company's total liabilities decreased slightly to HKD 693,795,000 from HKD 698,156,000, showing a reduction of about 0.6%[54]. - The company's total assets were valued at HKD 598,240,000 as of September 30, 2024, compared to HKD 751,679,000 in the previous year, indicating a reduction in asset base[63]. Cash Flow - The net cash inflow from operating activities for the six months ended September 30, 2024, was HKD 226,821,000, a decrease from HKD 372,030,000 in the same period of 2023, representing a decline of approximately 39%[67]. - The net cash outflow from investing activities for the six months ended September 30, 2024, was HKD (3,500,000), compared to HKD (1,920,000) in 2023, indicating an increase in investment spending[67]. - The net cash outflow from financing activities for the six months ended September 30, 2024, was HKD (156,145,000), significantly reduced from HKD (541,266,000) in the previous year, showing improved cash management[67]. - The total cash and cash equivalents at the end of the period increased to HKD 116,272,000 from HKD 92,676,000 in 2023, reflecting a positive cash position[67]. Market and Strategic Initiatives - The decline in revenue was attributed to decreased sales volume and average selling prices of cassava chips due to a sluggish export market in mainland China[11]. - The group continues to explore opportunities for market expansion and new strategies in response to the challenging economic environment[8]. - The company plans to establish a joint venture in Laos for the production and sale of tapioca starch, aiming to diversify its market presence and reduce reliance on the Chinese market[22]. - The company has a storage capacity of approximately 600,000 tons for dried cassava chips, enhancing its market coverage and supporting business growth[22]. Employee and Operational Metrics - The total employee count as of September 30, 2024, was approximately 240, with total employee costs amounting to HKD 12,600,000 during the period[19]. - The hotel and serviced apartment business maintained stable room revenue, with food and beverage services contracted out to generate fixed income[8]. - The company continues to monitor the performance of its operating segments separately for resource allocation and performance evaluation purposes[75].

Revenue and Profitability - Revenue for the six months ended September 30, 2024, was approximately HKD 449.2 million, compared to HKD 415.2 million for the same period in 2023, representing an increase of 8.1%[3] - The loss attributable to shareholders for the period was approximately HKD 9 million, compared to a profit of HKD 16.4 million in the same period last year, indicating a significant decline[3] - The company reported a gross profit of HKD 34.0 million, down from HKD 80.9 million year-on-year, reflecting a decrease of 57.9%[3] - The adjusted profit before tax for the group was a loss of HKD 17,971, compared to a profit of HKD 12,957 in the previous year[28][34] - The company reported a total comprehensive income of HKD 8,776,000 for the period, a decrease from HKD 16,406,000 in the previous year, indicating a decline of approximately 47%[10] Cash Flow and Assets - The company reported a net cash inflow from operating activities of HKD 226,821,000 for the six months ended September 30, 2024, compared to HKD 372,030,000 for the same period in 2023, representing a decrease of approximately 39%[13] - The company experienced a net cash outflow from financing activities of HKD 156,145,000, significantly lower than the HKD 541,266,000 outflow in the previous year, indicating improved cash management[13] - Total non-current assets amounted to HKD 1,038.3 million, a decrease from HKD 1,050.2 million as of March 31, 2024[7] - Current assets decreased significantly to HKD 236.0 million from HKD 417.3 million, a decline of 43.4%[7] - The company’s total assets were reported at HKD 760,455,000 as of September 30, 2023, down from HKD 751,679,000 at the beginning of the period, indicating a slight decrease[10] Equity and Liabilities - The total equity as of September 30, 2023, was HKD 663,560,000, a decrease from HKD 751,679,000 as of April 1, 2023, reflecting a decline of approximately 12%[10] - The net asset value decreased to HKD 463.4 million from HKD 483.9 million as of March 31, 2024[7] - Total liabilities increased to HKD 810,848 from HKD 983,588, indicating a reduction of 17.6%[37] Dividends and Retained Earnings - The company has proposed not to declare an interim dividend for this period[1] - The company’s retained earnings stood at HKD 501,288,000 as of September 30, 2023, compared to HKD 484,882,000 on April 1, 2023, showing an increase of about 3%[10] - The company’s proposed dividend remains at zero for the current period, consistent with the previous year, reflecting a cautious approach to cash distribution[10] Sales and Revenue Breakdown - The revenue from tapioca chip sales was HKD 438,684, down 47.7% from HKD 840,857 in the previous year[43] - The total rental income decreased to HKD 2,300 from HKD 7,328, representing a decline of 68.6%[43] - The revenue from the procurement and sales of cassava chips decreased to approximately HKD 438.7 million, down about 47.8% from HKD 840.9 million in the same period last year[61] - The gross profit from cassava chip sales dropped to approximately HKD 24.7 million, compared to HKD 66.9 million in the previous year, primarily due to decreased sales[63] - The cost of sales for cassava chips was approximately HKD 414 million, a reduction of about 46.5% from HKD 774 million in the same period last year[63] Operational Metrics - Inventory turnover was approximately 66.7 days as of September 30, 2024, a decrease of about 35.5 days compared to 102.2 days as of March 31, 2024[72] - Accounts receivable turnover was approximately 7.3 days as of September 30, 2024, a decrease of about 27.8 days from 35.1 days as of March 31, 2024[72] - The group has a total employee count of approximately 240, with total employee costs around HKD 12.6 million for the period[73] Future Plans and Investments - A joint venture will be established in Laos for the production and sale of cassava starch, expected to commence operations in the second half of 2024[81] - The group currently has no significant capital commitments or contingent liabilities as of September 30, 2024[77][78]

Revenue and Sales Performance - The group's revenue from hotel and serviced apartment room charges increased due to a rise in occupancy rates, with total sales and distribution costs for the year amounting to approximately HKD 113.4 million, down from HKD 280.4 million in the previous year, reflecting a decrease of about 59.5%[6]. - For the fiscal year ending March 31, 2024, the company's revenue from the procurement and sale of cassava chips decreased by approximately 70.3% to about HKD 1,173,600,000, down from approximately HKD 3,952,200,000 in the previous year[25]. - The company's hotel and serviced apartment operating income increased by approximately 31.0% to about HKD 14,800,000, up from approximately HKD 11,300,000 in the previous year[25]. - Total revenue for the year ended March 31, 2024, was HKD 1,193,032,000, a decrease from HKD 3,969,276,000 in the previous year, representing a decline of approximately 70%[181]. - Revenue from cassava chips sales was HKD 1,173,577,000, down from HKD 3,952,226,000, indicating a decrease of about 70%[184]. - Hotel and serviced apartment revenue increased to HKD 14,805,000 from HKD 11,291,000, reflecting an increase of approximately 31%[187]. Financial Performance and Expenses - The group's administrative expenses decreased from approximately HKD 152.7 million last year to about HKD 99.7 million this year, a reduction of approximately 34.7%[6]. - The group's financing costs increased from approximately HKD 35.9 million to about HKD 41.2 million, primarily due to rising interest rates on trade finance loans and bank loans[6]. - The annual loss attributable to shareholders was approximately HKD 111.4 million, compared to HKD 94.7 million in the previous year, indicating an increase in losses of about 17.5%[6]. - The company reported a pre-tax loss of HKD 139,790,000 for the year, compared to a profit in the previous year[185]. - Interest expenses for the year totaled HKD 41,218,000, an increase from HKD 35,880,000 in the previous year[192]. Asset and Capital Management - As of March 31, 2024, the group's net asset value decreased to approximately HKD 484 million from HKD 662.6 million a year earlier, a decline of about 27%[6]. - The group's capital gearing ratio as of March 31, 2024, was 39.0%, down from 47.1% the previous year, indicating improved utilization of internal financial resources[6]. - Total assets amounted to HKD 1,467,539,000, while total liabilities were HKD 983,588,000, resulting in a net asset position[185]. - The fair value of investment properties as of March 31, 2024, is HKD 501.4 million, down from HKD 510.9 million in 2023[103]. - The fair value of investment properties as of March 31, 2024, is HKD 501,400,000, with significant unobservable elements accounting for HKD 490,400,000 in commercial properties and HKD 11,000,000 in industrial properties[104]. Inventory and Receivables Management - Inventory turnover increased to approximately 102.2 days, up from 43.2 days a year earlier, reflecting a strategic decision to hold more inventory for future needs[6]. - Accounts receivable turnover improved to approximately 35.1 days from 49.6 days, due to accelerated cash flow recovery from customers[6]. Corporate Governance and Compliance - The company has adopted a corporate governance code that complies with the standards set out in the Hong Kong Stock Exchange Listing Rules[78]. - The board of directors has received independent confirmation of the independence of its non-executive directors as of the report date[60]. - The company has confirmed compliance with the standard code of conduct for securities transactions by all directors during the reporting period[90]. Strategic Initiatives and Market Presence - The company plans to establish a joint venture in Laos to produce and sell cassava starch, aiming to diversify its market presence and reduce reliance on the Chinese market[28]. - The company is expanding its market presence in China and Southeast Asia through strategic investments and partnerships[1]. - The company is committed to developing new products and technologies to enhance its market competitiveness[1]. Environmental and Social Responsibility - The group emphasized environmental protection and sustainable development initiatives to enhance its corporate social responsibility[20]. - The company has a commitment to sustainable development and aims to provide quality products and services to its customers[41]. Employee and Operational Management - The total employee cost, including director remuneration, was approximately HKD 22,600,000 for the year[28]. - The company is focused on optimizing employee allocation to mitigate negative factors affecting performance[25]. - The group has established a mandatory provident fund scheme for employees, with contributions calculated as a percentage of basic salary[142]. Financial Instruments and Risk Management - The group applies a short-term lease recognition exemption for leases with a lease term of 12 months or less[129]. - The group utilizes derivative financial instruments, such as forward currency contracts, to hedge foreign currency risks, with any gains or losses recognized directly in profit or loss[1]. - The group is focused on financial risk management, with policies detailed on pages 80 to 83 of the annual report[39].

Financial Performance - The company reported a loss attributable to shareholders of approximately HKD 111,400,000, an increase of about 17.6% compared to the previous year[1]. - Total revenue for the year was HKD 1,193,032,000, down from HKD 3,969,276,000 in the previous year, representing a significant decline[2]. - Gross profit decreased to HKD 152,041,000 from HKD 450,686,000, indicating a substantial drop in profitability[2]. - The company experienced a pre-tax loss of HKD 139,790,000, compared to a pre-tax loss of HKD 115,003,000 in the previous year[2]. - The total comprehensive loss for the year amounted to HKD 178,599,000, compared to HKD 168,110,000 in the previous year[3]. - The revenue from the procurement and sale of dried cassava chips decreased to approximately HKD 1,173,600,000, a decline of about 70.3% compared to HKD 3,952,200,000 in the previous year[49]. - The group reported a pre-tax loss of HKD 115,003,000 for the year, after accounting for various expenses and costs[60]. - The group's annual loss attributable to shareholders was approximately HKD 111.4 million, compared to HKD 94.7 million in the previous year[78]. Assets and Liabilities - Non-current assets decreased to HKD 1,050,248,000 from HKD 1,108,269,000, reflecting a decline in asset value[4]. - Current assets dropped significantly to HKD 417,291,000 from HKD 933,510,000, indicating liquidity challenges[4]. - The company's cash and cash equivalents decreased to HKD 49,424,000 from HKD 264,174,000, highlighting a reduction in available cash[4]. - The total assets of the company amounted to HKD 1,467,539,000, while total liabilities were HKD 983,588,000[37]. - The group's current liabilities are approximately HKD 285.4 million, a decrease from HKD 679.3 million in 2023, primarily due to accounts payable and accrued expenses of about HKD 17.5 million, down from HKD 34 million in 2023[102]. - The group's non-current liabilities include non-current bank loans of approximately HKD 404 million, a slight decrease from HKD 412 million in 2023[105]. Equity and Dividends - The net asset value of the company fell to HKD 483,951,000 from HKD 662,550,000, showing a decline in overall equity[4]. - The total equity attributable to the owners of the company decreased to HKD 483,951,000 from HKD 662,550,000 in the previous year, representing a decline of approximately 27%[23]. - The board has proposed not to declare a final dividend for the year[18]. - The board has recommended not to declare a final dividend for the year ending March 31, 2024[109]. Operational Highlights - The company remains the largest dry cassava chip purchaser and exporter in Thailand, as well as the largest importer in China[1]. - The hotel and serviced apartment segment reported an increase in revenue from approximately HKD 11,300,000 to approximately HKD 14,800,000, representing a growth of about 31.0% due to higher occupancy rates[75]. - The cost of sales for dried cassava chips was approximately HKD 1,039,000,000, a decrease of approximately HKD 2,477,700,000 or 70.5% compared to the previous year, primarily due to a reduction in sales volume[76]. - The group is expanding its procurement network for cassava chips in Thailand, Laos, and Cambodia to enhance market coverage and maintain business growth[85]. - The group plans to establish a joint venture in Laos for the production and sale of cassava starch, aiming to diversify its market coverage and reduce reliance on the Chinese market[108]. Financial Management - The company has applied the revised Hong Kong Financial Reporting Standards effective January 1, 2022, which did not have a significant impact on the financial statements[15]. - The financial statements are prepared in accordance with historical cost convention, except for certain financial assets and liabilities measured at fair value[25]. - The group has established an audit committee to review financial reporting and internal controls, ensuring compliance with applicable accounting standards[116]. - The group continues to monitor the performance of its operating segments separately for resource allocation and performance assessment[32]. Cost Management - The group's sales and distribution costs were approximately HKD 113.4 million, significantly reduced from approximately HKD 280.4 million in the previous year[98]. - Administrative expenses decreased to approximately HKD 99.7 million from HKD 152.7 million in the previous year, mainly due to the absence of expected credit losses from hotel business receivables[79]. - The company incurred a depreciation expense of HKD 13,963,000 for property, plant, and equipment, down from HKD 16,266,000 in the previous year[43]. - The company's interest expenses totaled HKD 41,218,000, an increase from HKD 35,880,000 in the previous year[42]. Customer Concentration - The company identified two major customers for dried cassava chips, with sales of approximately HKD 384,222,000 and HKD 223,147,000, each exceeding 10% of total sales revenue[38]. - The group disclosed that two major customers accounted for approximately HKD 487,532,000 and HKD 401,994,000 in sales, each exceeding 10% of total sales revenue[63]. Inventory and Turnover - The inventory turnover as of March 31, 2024, is approximately 102.2 days, an increase of about 59.0 days compared to 43.2 days on March 31, 2023[103]. - The accounts receivable turnover improved to approximately 35.1 days from 49.6 days in the previous year, due to faster cash flow recovery from customers[81]. - The group strategically holds certain inventory levels to meet future needs, contributing to the increased inventory turnover days[103].