[Performance Summary](index=3&type=section&id=Performance%20Summary) The company reported a significant shift from profit to loss in Q1 FY2021, with revenue declining and a net loss attributable to equity holders First Quarter Performance Highlights (As of June 30, 2021) | Metric | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | | :--- | :--- | :--- | | Revenue | approx. HKD 126,906,000 | approx. HKD 220,856,000 | | (Loss)/Profit for the Period | Loss of approx. HKD 4,620,000 | Profit of approx. HKD 5,263,000 | | (Loss)/Profit Attributable to Equity Holders | Loss of approx. HKD 4,005,000 | Profit of approx. HKD 5,938,000 | | Basic (Loss)/Earnings Per Share | Loss of approx. HK cents 0.08 | Profit of approx. HK cents 0.14 | | Proposed Dividend | Nil | Nil | [Financial Results](index=4&type=section&id=Financial%20Results) This section provides a detailed overview of the group's financial performance, including comprehensive income, revenue breakdown, tax expenses, earnings per share, and dividend policy [Condensed Consolidated Statement of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) For the three months ended June 30, 2021, the Group shifted from profit to loss, with revenue significantly decreasing by 42.5% year-on-year to HKD 127 million, leading to a 61.2% reduction in gross profit, resulting in a loss attributable to equity holders of HKD 4.005 million compared to a profit of HKD 5.938 million in the prior year Key Items from Consolidated Statement of Comprehensive Income (Three Months Ended June 30) | Item (HKD thousands) | 2021 (Unaudited) | 2020 (Unaudited) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue from contracts with customers | 126,906 | 220,856 | -42.5% | | Gross profit | 7,032 | 18,123 | -61.2% | | Profit from operations | 1,797 | 11,477 | -84.3% | | (Loss)/Profit before tax | (4,048) | 5,263 | Shift from profit to loss | | (Loss)/Profit for the period | (4,620) | 5,263 | Shift from profit to loss | | (Loss)/Profit attributable to equity holders of the Company | (4,005) | 5,938 | Shift from profit to loss | | Basic (loss)/earnings per share (HK cents) | (0.08) | 0.14 | Shift from profit to loss | [Notes to Financial Statements](index=6&type=section&id=Notes%20to%20Financial%20Statements) The notes detail the company's core businesses, revenue composition, tax situation, earnings per share calculation, and dividend policy, highlighting that current period revenue is solely from supply chain management with no contribution from marine fishing [1. Company Information and Principal Activities](index=6&type=section&id=1.%20Company%20Information%20and%20Principal%20Activities) The Company is an investment holding company incorporated in Bermuda, with its subsidiaries primarily engaged in supply chain management services and marine fishing - Company's principal activities include investment holding, with subsidiaries engaged in **supply chain management services** and **marine fishing**[16](index=16&type=chunk) [3. Revenue and Other Income](index=7&type=section&id=3.%20Revenue%20and%20Other%20Income) Total revenue for the period was HKD 127 million, entirely from supply chain management services, a significant decrease from HKD 219 million in the prior year, with no revenue from marine fishing compared to HKD 1.972 million last year Revenue by Segment (Three Months Ended June 30) | Business Segment (HKD thousands) | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Supply chain management services business | 126,906 | 218,884 | | Marine fishing business | – | 1,972 | | **Total Revenue** | **126,906** | **220,856** | [4. Other Income](index=7&type=section&id=4.%20Other%20Income) Other income significantly decreased from HKD 4.603 million in the prior year to HKD 0.384 million, primarily due to the absence of other loan interest income and lower miscellaneous income recorded in the current period Other Income Details (Three Months Ended June 30) | Item (HKD thousands) | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | Miscellaneous income | 144 | 2,307 | | Other loan interest income | – | 1,620 | | Government grant income | 240 | 676 | | **Total** | **384** | **4,603** | [5. Income Tax Expense](index=8&type=section&id=5.%20Income%20Tax%20Expense) The period incurred an income tax expense of HKD 0.572 million, mainly from China corporate income tax, compared to no income tax expense in the prior year - The period recorded a **tax expense of HKD 0.572 million**, entirely current tax, primarily from **China operations**, compared to zero in the prior year[24](index=24&type=chunk) [6. (Loss)/Earnings Per Share](index=9&type=section&id=6.%20(Loss)%E2%88%95Earnings%20Per%20Share) Due to the shift from profit to loss, basic loss per share for the period was HK cents 0.08, compared to earnings per share of HK cents 0.14 in the prior year, calculated based on approximately 4.91 billion weighted average shares (Loss)/Earnings Per Share Calculation | Item | 2021 (Unaudited) | 2020 (Unaudited) | | :--- | :--- | :--- | | (Loss)/Profit attributable to equity holders (HKD thousands) | (4,005) | 5,938 | | Weighted average number of ordinary shares in issue | 4,913,656,179 | 4,225,960,179 | | **Basic (loss)/earnings per share (HK cents)** | **(0.08)** | **0.14** | [8. Dividends](index=10&type=section&id=8.%20Dividends) The Board of Directors did not recommend the payment of any dividend for the three months ended June 30, 2021 - The Board of Directors did not recommend any dividend for the period, consistent with the prior year[36](index=36&type=chunk) [Management Discussion and Analysis](index=11&type=section&id=Management%20Discussion%20and%20Analysis) This section reviews the group's operational and financial performance, discusses future outlook, and details liquidity, financial resources, capital structure, and employee remuneration policies [Operations and Financial Review](index=11&type=section&id=Operations%20and%20Financial%20Review) During the period, the Group's core supply chain management services, particularly for aquatic products, experienced a revenue decline due to COVID-19 impacting overseas fishing license renewals, halting upstream fishing operations; despite revenue and gross profit decreases, administrative expenses were reduced by approximately 50% year-on-year through enhanced cost control, resulting in a loss attributable to shareholders of approximately HKD 4 million - The Group's business focus remains on **supply chain management services**, with continued development in **aquatic product supply chains**, while seeking alternative overseas fishing grounds due to COVID-19 related license renewal difficulties[38](index=38&type=chunk) Financial Performance Review (Three Months Ended June 30) | Item | 2021 | 2020 | Reason for Change | | :--- | :--- | :--- | :--- | | Revenue | approx. HKD 127 million | approx. HKD 221 million | No contribution from fishing business | | Gross Profit Margin | 5.5% | 8.2% | Absence of fishing business (higher gross margin) | | Administrative Expenses | approx. HKD 5.6 million | approx. HKD 11.2 million | Enhanced cost control and reduced travel expenses | | (Loss)/Profit Attributable to Shareholders | Loss of approx. HKD 4 million | Profit of approx. HKD 5.94 million | Decreased revenue and gross profit | [Outlook](index=12&type=section&id=Outlook) The company will continue to monitor and develop existing supply chain management businesses while actively seeking other promising investment and business opportunities to diversify revenue streams, particularly leveraging the new management team's experience in ocean fishing to enhance shareholder value - Management will continue to seek **promising investment and business opportunities** to expand revenue sources[41](index=41&type=chunk) - The Group will leverage the new management team's experience to further explore **ocean fishing business opportunities**[41](index=41&type=chunk) [Liquidity, Financial Resources and Capital Structure](index=12&type=section&id=Liquidity%2C%20Financial%20Resources%20and%20Capital%20Structure) As of June 30, 2021, the Group maintained a sound financial position with total assets of approximately HKD 1.57 billion and a low gearing ratio (total bank borrowings/total assets) of 4.16%, with bank balances and cash of approximately HKD 4.7 million, a decrease from the beginning of the period, primarily relying on self-generated working capital for operations Capital Structure (As of June 30, 2021) | Metric | June 30, 2021 | March 31, 2021 | | :--- | :--- | :--- | | Total Assets | approx. HKD 1,569,672,000 | approx. HKD 1,544,594,000 | | Bank Balances and Cash | approx. HKD 4,696,000 | approx. HKD 9,656,000 | | Bank Borrowings | approx. HKD 65,289,000 | approx. HKD 64,822,000 | | Gearing Ratio | 4.16% | 4.28% | [Employees and Remuneration Policy](index=13&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2021, the Group's employee count decreased from 75 to 61, and total staff costs (excluding directors' emoluments) significantly dropped from HKD 4.1 million to HKD 2.2 million, reflecting the company's control over human resource expenses Employee and Cost Changes | Metric | June 30, 2021 | June 30, 2020 | | :--- | :--- | :--- | | Number of Employees | 61 | 75 | | Total Staff Costs for the Period | approx. HKD 2,200,000 | approx. HKD 4,100,000 | [Disclosures](index=14&type=section&id=Disclosures) This section covers the interests of directors and major shareholders in the company's shares, details of the share option scheme, and adherence to corporate governance practices [Directors' and Chief Executives' Interests in Shares, Underlying Shares and Debentures](index=14&type=section&id=Directors'%20and%20Chief%20Executives'%20Interests%20in%20Shares%2C%20Underlying%20Shares%20and%20Debentures) The report discloses the shareholdings of directors and major shareholders as of June 30, 2021, including Ms. Wei Qing, Mr. Fan Guocheng, and Mr. Cai Haiming, with Mr. Liu Yi holding 14.74% as a major shareholder Directors' Shareholdings (As of June 30, 2021) | Director's Name | Capacity | Number of Ordinary Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Ms. Wei Qing | Beneficial Owner | 79,608,000 | 1.62% | | Mr. Fan Guocheng | Beneficial Owner | 800,000 | 0.02% | | Mr. Cai Haiming | Beneficial Owner | 151,404,857 | 3.08% | - Major shareholder **Mr. Liu Yi** beneficially owns **724,292,000 shares**, representing approximately **14.74%** of the issued share capital[55](index=55&type=chunk) [Share Option Scheme](index=15&type=section&id=Share%20Option%20Scheme) The company adopted a share option scheme in 2011 to incentivize and retain eligible employees; however, no share options have been granted under the scheme since its adoption - The company adopted a **share option scheme in 2011**, but **no options have been granted** since its adoption[57](index=57&type=chunk)[58](index=58&type=chunk) [Corporate Governance Practices](index=16&type=section&id=Corporate%20Governance%20Practices) The company has adopted the Corporate Governance Code, but deviates in the separation of Chairman and Chief Executive roles, currently held by Mr. Liu Rongsheng, which the Board believes provides strong and consistent leadership; the Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited financial statements for the period - The company deviates from corporate governance best practices as the **roles of Chairman and Chief Executive are not separated**, both held by **Mr. Liu Rongsheng**, though the Board believes this structure provides strong and consistent leadership[64](index=64&type=chunk) - The **Audit Committee**, composed of three independent non-executive directors with Mr. Jin Xiaoxian as Chairman, has reviewed the unaudited financial statements for the period[66](index=66&type=chunk)

世界恩臣 CHINA OCEAN GR DEVELOPMENT LIM 2020-2021 Annual Report 年報 China Ocean Group Development Limited 中國海洋集團發展有限公司 (Incorporated in Bermuda with limited liability) (於百慕蓬註冊成立之有限公司) Stock code 股份代號 : 8047 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than other companies listed on the Stock Exchange. Prospective investors should b ...

Financial Performance - The group's revenue for the nine months ended December 31, 2020, was approximately HKD 475.63 million, a decrease of 23.9% compared to HKD 624.84 million in the same period of 2019[5]. - The group reported a loss of approximately HKD 7.52 million for the nine months ended December 31, 2020, compared to a profit of HKD 18.09 million in the same period of 2019[7]. - The basic loss per share for the nine months ended December 31, 2020, was HKD (0.13) cents, down from HKD 0.43 cents in the same period of 2019[5]. - Gross profit for the nine months ended December 31, 2020, was HKD 36.26 million, a decline of 41.7% from HKD 62.12 million in the same period of 2019[7]. - The group reported a net loss attributable to shareholders of HKD (5,417,000) for the nine months ended December 31, 2020, compared to a profit of HKD 18,247,000 in the same period of 2019[40]. - The group's revenue decreased to approximately HKD 475,627,000, down from HKD 624,835,000 in the same period last year, primarily due to the impact of COVID-19 and related preventive measures[57]. - Gross profit decreased to approximately HKD 36,263,000 from HKD 62,123,000 in the same period last year, resulting in a gross margin decline from 9.9% to 7.6%[59]. - The loss attributable to equity holders was approximately HKD 5,417,000, compared to a profit of HKD 18,247,000 in the same period last year[59]. Revenue Sources - Revenue from supply chain management services was HKD 472,899,000, down 22.0% from HKD 606,200,000 in the previous year[33]. - The total revenue from the seafood supply chain business was approximately HKD 472,899,000, compared to HKD 606,200,000 in 2019, while the fishing business contributed approximately HKD 2,708,000 to total revenue[57]. Expenses and Costs - Administrative expenses decreased to HKD 24.34 million from HKD 35.04 million in the same period of 2019, reflecting a reduction of 30.4%[7]. - Financing costs increased to HKD 19.98 million from HKD 17.21 million in the same period of 2019, representing an increase of 10.3%[7]. - Total employee costs (excluding directors' remuneration) for the period were approximately HKD 8,751,000, down from HKD 9,079,000 in the same period of 2019[72]. Dividends and Shareholder Information - The group did not recommend any dividend payment for the period, consistent with the previous year[5]. - The group has not recommended any dividends for the nine months ended December 31, 2020, consistent with the previous year[49]. - As of December 31, 2020, major shareholder Liu Yi holds 724,292,000 shares, representing approximately 15.37% of the issued share capital[78]. Corporate Governance - The company has adopted a code of conduct for securities trading, with no known violations by directors during the period[89]. - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO, which are held by the same individual[90]. - The group will continue to review its corporate governance structure for potential changes[90]. - The Audit Committee was established in October 2001 and consists of three independent non-executive directors as of December 31, 2020[92]. - The Audit Committee reviewed the unaudited financial statements for the period and confirmed compliance with appropriate accounting standards and GEM listing rules[92]. Future Plans and Strategies - The group aims to enhance its supply chain management services and explore new market opportunities in the coming quarters[28]. - The company continues to focus on its core business of investment holding and marine fishing, with plans for strategic expansion[28]. - The group continues to focus on supply chain management services, leveraging its financial strength to establish strategic partnerships in response to the high demand for such services in mainland China[55]. - The management will continue to seek investment and business opportunities to expand revenue sources and enhance shareholder value, particularly in the deep-sea fishing business[60]. Assets and Liabilities - As of December 31, 2020, total assets were approximately HKD 1,854,714,000, an increase from HKD 1,716,622,000 as of March 31, 2020[61]. - The debt-to-asset ratio was approximately 4.40% as of December 31, 2020, compared to 2.15% as of March 31, 2020, with total bank borrowings amounting to HKD 81,488,000[63]. Staffing and Employment - As of December 31, 2020, the group employed 67 staff members, a decrease from 82 staff members as of December 31, 2019[72].

Financial Performance - The group's revenue for the six months ended September 30, 2020, was approximately HKD 380,468,000, compared to HKD 337,981,000 for the same period in 2019, representing an increase of 12.5%[4] - The profit for the period was approximately HKD 11,492,000, up from HKD 9,854,000 in 2019, reflecting a growth of 16.6%[6] - The profit attributable to equity holders of the company was approximately HKD 12,931,000, compared to HKD 10,593,000 in 2019, marking an increase of 22.0%[4] - Basic earnings per share for the period were approximately HKD 0.30 cents, compared to HKD 0.25 cents in 2019, indicating a rise of 20.0%[11] - The group's gross profit for the six months was HKD 38,809,000, slightly down from HKD 39,442,000 in the previous year, a decrease of 1.6%[6] - Revenue from supply chain management services was HKD 377,636,000 for the six months ended September 30, 2020, compared to HKD 321,456,000 in the same period of 2019, indicating a growth of about 17.5%[33] - The group reported segment revenue of HKD 377,636,000 for the six months ended September 30, 2020, compared to HKD 321,456,000 for the same period in 2019, representing a growth of approximately 17.5%[40] - The group’s pre-tax profit for the six months ended September 30, 2020, was HKD 12,931,000, compared to HKD 10,593,000 for the same period in 2019, indicating an increase of approximately 22.0%[50] - The basic and diluted earnings per share for the six months ended September 30, 2020, were HKD 0.0030, up from HKD 0.0025 in the same period of 2019, marking a rise of 20.0%[50] - The seafood business generated total revenue of approximately HKD 377,636,000, up from HKD 321,456,000 in 2019, indicating a growth of around 17.5%[79] - The gross profit decreased to approximately HKD 38,809,000, down from HKD 39,442,000 in the same period of 2019, resulting in a gross margin decline from 11.7% to 10.2%[81] - The net profit attributable to equity holders was approximately HKD 12,931,000, compared to HKD 10,593,000 in 2019, reflecting an increase of about 22%[81] Assets and Liabilities - Total assets as of September 30, 2020, were HKD 1,912,813,000, compared to HKD 1,736,622,000 as of March 31, 2020, showing an increase of 10.1%[15] - Current assets increased to HKD 1,329,411,000 from HKD 1,157,490,000, reflecting a growth of 14.8%[15] - The group’s total liabilities as of September 30, 2020, were HKD 601,131,000, compared to HKD 439,430,000 as of September 30, 2019, representing an increase of approximately 37.0%[43] - The group’s segment liabilities for the six months ended September 30, 2020, were HKD 262,290,000, compared to HKD 111,128,000 for the same period in 2019, reflecting a significant increase of about 135.0%[43] - The group had bank borrowings of approximately HKD 72,528,000, up from HKD 36,989,000 as of March 31, 2020, resulting in a debt-to-asset ratio of 3.79%[84] - The group’s unallocated assets, including investments in associates, amounted to HKD 215,294,000 as of September 30, 2020, compared to HKD 148,144,000 as of September 30, 2019, reflecting an increase of about 45.2%[43] Cash Flow - The group reported a net cash position of HKD 4,190,000 as of September 30, 2020, compared to HKD 2,924,000 as of March 31, 2020, an increase of 43.3%[15] - The net cash used in operating activities for the six months ended September 30, 2020, was HKD (22,142,000), an improvement from HKD (49,598,000) in the same period of 2019[23] - Cash and cash equivalents at the end of the period were HKD 4,190,000, down from HKD 7,439,000 in the previous year[25] - The net cash inflow from financing activities for the six months ended September 30, 2020, was HKD 39,801,000, compared to HKD 46,601,000 for the same period in 2019[23] - The company reported a decrease in cash and cash equivalents of HKD 1,266,000 for the six months ended September 30, 2020, compared to a decrease of HKD 6,887,000 in the same period of 2019[25] Dividends and Share Capital - The board declared no interim dividend for the period, consistent with the previous year[4] - The company declared no interim dividend for the period, consistent with the previous year[53] - The issued and fully paid ordinary shares increased to 4,305,960,179 as of September 30, 2020, from 4,225,960,179 as of March 31, 2020[71] - A total of 50,000,000 new shares were issued at HKD 0.10 per share, raising HKD 5,000,000 for general operational funds[105] Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated financial statements for the period and confirmed compliance with appropriate accounting standards and GEM listing rules[125] - The company has adopted a code of corporate governance in line with GEM listing rules, although it deviates from the principle of separating the roles of Chairman and CEO, with the current structure deemed more suitable for long-term business planning[123] - There were no changes in the interests of directors or major shareholders in any competing businesses during the reporting period, indicating no conflicts of interest[119] - The company has confirmed that all directors adhered to the securities trading standards throughout the reporting period, ensuring compliance with regulations[122] - The company is committed to continuously reviewing its corporate governance structure to assess the need for changes, including the potential separation of the roles of Chairman and CEO[123] Strategic Initiatives - The group plans to explore new investment and business opportunities to expand revenue sources and enhance shareholder value, particularly in the deep-sea fishing business[82] - The group has established strategic partnerships with other supply chain companies to enhance procurement and sales operations in import and export trade[77] - The company has established an appropriate authorization system for investment projects, which are regularly updated and reported to the board[100] Risks and Challenges - The company faces various risks including market risk, operational risk, investment risk, human resources risk, and financial risk[96][99][100][101][102] - The company is closely monitoring the impact of COVID-19 on its financial condition, cash flow, and operational performance[105] Employee and Compensation - The total employee cost for the period was approximately HKD 6,496,000, slightly up from HKD 6,481,000 in the same period of 2019[94] - The company is committed to providing attractive compensation packages to retain key personnel essential for achieving business objectives[101] - The company has a stock option plan in place to incentivize and retain qualified participants, including employees and independent non-executive directors[110] - The company has not granted any stock options since the adoption of the stock option plan[111] Other Financial Information - The company did not make any loans or advances during the period, focusing instead on developing supply chain management and marine fishing businesses[78] - The company has not engaged in any significant mergers or acquisitions during the reporting period, maintaining its current operational structure[118] - The company has not disclosed any new product developments or technological advancements in the current reporting period[120]

Financial Performance - The group's revenue for the three months ended June 30, 2020, was approximately HKD 220,856,000, compared to HKD 159,388,000 for the same period last year, representing a year-over-year increase of 38.5%[4] - The group's profit for the period was approximately HKD 5,263,000, up from HKD 4,211,000 in the previous year, indicating a growth of 25.0%[6] - Earnings attributable to equity holders of the company were approximately HKD 5,938,000, compared to HKD 5,085,000 in the prior year, reflecting an increase of 16.7%[4] - The basic earnings per share for the period was approximately HKD 0.14 cents, compared to HKD 0.12 cents in the previous year, marking a growth of 16.7%[10] - The gross profit for the period was HKD 18,123,000, slightly up from HKD 18,032,000 in the same period last year[6] - The total comprehensive loss for the period was HKD (21,780,000), compared to a gain of HKD 17,000 in the previous year[9] - The company did not recommend any dividend payment for the period, consistent with the previous year[4] - The company's total revenue for the period increased to approximately HKD 220,856,000, compared to HKD 159,388,000 in the same period last year, representing a growth of 38.5%[37] - The gross profit for the period was approximately HKD 18,123,000, slightly up from HKD 18,032,000 in the previous year, indicating a stable gross profit margin[37] - The net profit attributable to shareholders was approximately HKD 5,938,000, an increase from HKD 5,085,000 in the previous year, reflecting a growth of 16.8%[38] Expenses and Costs - Administrative expenses decreased to HKD (11,228,000) from HKD (12,231,000), showing a reduction of 8.2%[6] - Financial expenses increased to HKD (6,214,000) from HKD (5,270,000), representing a rise of 17.9%[6] - Administrative expenses decreased from HKD 12,200,000 in the previous year to approximately HKD 11,200,000, due to improved cost control and reduced travel expenses[38] - The total employee cost for the period was approximately HKD 4,100,000, compared to HKD 3,700,000 for the same period in 2019, reflecting an increase of about 10.81%[49] Assets and Liabilities - As of June 30, 2020, total assets were approximately HKD 1,878,546,000, up from HKD 1,717,144,000 as of March 31, 2020[40] - The debt-to-asset ratio was 1.92% as of June 30, 2020, a slight improvement from 2.15% as of March 31, 2020[40] - As of June 30, 2020, the group had pledged certain investment properties with a carrying value of approximately HKD 19,400,000 as collateral for borrowings[47] - The group reported no contingent liabilities as of June 30, 2020[48] Shareholder Information - The company plans to issue 80,000,000 subscription shares at HKD 0.13 per share, raising a total of HKD 10,400,000 for general working capital[41] - The company completed two subscription agreements on July 10 and July 17, 2020, issuing a total of 80,000,000 shares at HKD 0.13 per share, raising a total of HKD 10,400,000 for general working capital[50][51] - As of June 30, 2020, the major shareholder Liu Yi held 724,292,000 shares, representing approximately 17.14% of the issued share capital[56] Corporate Governance - The group did not have any significant investments, acquisitions, or disposals of subsidiaries or associates during the reporting period[46] - The group had no foreign exchange contracts or other financial derivatives for hedging purposes as of June 30, 2020[43] - The company has not granted any share options under its share option scheme since its adoption on October 18, 2011[59] - The group did not purchase, sell, or redeem any of its listed shares during the reporting period[61] - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with the GEM listing rules, with no violations reported during the period[64] - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited financial statements for the period and confirmed they were prepared in accordance with appropriate accounting standards[68] - The company changed its name from "China Ocean Fishing Holdings Limited" to "China Ocean Group Development Limited" in January 2020, with shareholder approval obtained[67] Strategic Focus - The company continues to focus on supply chain management services, leveraging strategic partnerships to enhance operational efficiency[35] - The management will actively seek new investment and business opportunities to expand revenue sources and enhance shareholder value[39] - The company aims to explore opportunities in deep-sea fishing business, leveraging the experience of its new management team[39] Employment - The group employed 75 staff members as of June 30, 2020, down from 159 staff members as of June 30, 2019, indicating a reduction of approximately 52.83%[49]

Financial Performance - The group's revenue for the nine months ended December 31, 2019, was approximately HKD 624,835,000, a decrease of 19.8% compared to HKD 778,853,000 for the same period in 2018[4]. - The group's profit for the nine months was approximately HKD 18,087,000, down from HKD 28,804,000 in 2018, representing a decline of 37.2%[6]. - The profit attributable to equity holders of the company was approximately HKD 18,247,000, compared to HKD 24,739,000 in 2018, reflecting a decrease of 26.3%[4]. - The basic earnings per share for the period was approximately HKD 0.43 cents, down from HKD 0.67 cents in 2018, indicating a decline of 35.8%[4]. - The gross profit for the nine months was HKD 62,123,000, a decrease of 6.4% from HKD 66,695,000 in the previous year[6]. - The total comprehensive loss for the period was HKD 39,342,000, compared to a loss of HKD 42,780,000 in 2018, showing an improvement of 5.7%[15]. - Revenue from supply chain management services was HKD 606,200,000 for the nine months ended December 31, 2019, down from HKD 735,076,000 in the previous year, representing a decline of 17.5%[29]. - Other income for the nine months ended December 31, 2019, totaled HKD 8,810,000, a decrease of 60.1% from HKD 21,932,000 in the previous year[31]. - Interest income from customer loans was HKD 79,000 for the nine months ended December 31, 2019, significantly lower than HKD 1,480,000 in the same period of 2018[29]. - The company recorded a total comprehensive loss of HKD 71,584,000 for the period, primarily due to foreign exchange differences[44]. Expenses and Costs - The cost of services and goods sold was HKD 562,712,000, down from HKD 712,158,000 in 2018, representing a decrease of 20.9%[6]. - The administrative expenses for the period were HKD 35,038,000, slightly reduced from HKD 36,876,000 in 2018[6]. - The company’s financial expenses increased significantly to HKD 17,211,000 from HKD 2,376,000 in the previous year, indicating a rise of 623.5%[6]. Dividends and Shareholder Information - The company did not recommend any dividend payment for the period, consistent with the previous year[4]. - The company did not recommend any dividend for the nine months ended December 31, 2019, consistent with the previous year[39]. - As of December 31, 2019, major shareholder Liu Yi holds 724,292,000 shares, representing approximately 17.14% of the issued share capital[65]. - The company has not granted any share options under the share option scheme since its adoption on October 18, 2011[68]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited financial statements for the period and confirmed compliance with applicable accounting standards and GEM listing rules[80]. - The company has adopted a code of conduct for securities transactions by directors, with no known violations during the reporting period[77]. - The company has not disclosed any interests or short positions in shares or debentures that require notification under the Securities and Futures Ordinance[64]. - The company has not established any provisions for pre-emptive rights in its articles of association or Bermuda law[76]. - The company is committed to reviewing its corporate governance structure to ensure effective leadership and compliance with governance codes[78]. - There have been no changes in the rights of directors to acquire securities during the reporting period[69]. Business Strategy and Operations - The group plans to expand its business in Mozambique and Cambodia, which will lead to an increase in personnel and a full-scale launch of fishing operations[51]. - The group has established strategic partnerships with other supply chain companies to enhance procurement and sales operations in import and export trade, logistics, customs clearance, and storage services[47]. - The group has no plans for significant investments or capital assets in the coming year[62]. Staffing and Assets - As of December 31, 2019, total assets were approximately HKD 1,710,910,000, with cash and cash equivalents around HKD 3,792,000[53]. - The debt-to-asset ratio was approximately 2.1%, with total bank borrowings amounting to HKD 36,667,000[55]. - The group employed 82 staff members as of December 31, 2019, down from 133 a year earlier, with total employee costs of approximately HKD 9,079,000[60].

Financial Performance - The group's revenue for the six months ended September 30, 2019, was approximately HKD 337,981,000, a decrease of 38.2% compared to HKD 547,651,000 for the same period in 2018[4] - The group's profit for the period was approximately HKD 9,854,000, down 31.5% from HKD 14,403,000 in 2018[4] - Profit attributable to equity holders of the company was approximately HKD 10,593,000, an increase of 7.7% from HKD 9,836,000 in the previous year[4] - Basic earnings per share for the period was approximately HKD 0.25 cents, compared to HKD 0.28 cents in 2018[4] - The group reported a gross profit of HKD 39,442,000 for the six months, down 19.4% from HKD 49,027,000 in the same period last year[6] - Total comprehensive loss for the period amounted to HKD 64,742,000, compared to a loss of HKD 13,137,000 in 2018[11] - The group reported a net cash inflow from operating activities of HKD 9,897,000 for the six months ended September 30, 2019, a significant improvement from a cash outflow of HKD 206,699,000 in the same period last year[24] - The income tax expense for the six months ended September 30, 2019, was HKD 819,000, compared to HKD 680,000 for the same period in 2018, representing an increase of approximately 20.4%[59] Assets and Liabilities - Non-current assets as of September 30, 2019, were valued at HKD 619,127,000, an increase from HKD 582,817,000 as of March 31, 2019[14] - Current assets totaled HKD 1,027,143,000, a decrease from HKD 1,110,234,000 as of March 31, 2019[14] - As of September 30, 2019, the net current assets amounted to HKD 687,830,000, a decrease from HKD 772,146,000 in the previous year[17] - Total assets less current liabilities were HKD 1,306,957,000, compared to HKD 1,354,963,000 in the prior year, indicating a decline[17] - The total equity attributable to equity holders was reported at HKD 1,227,385,000, a decrease from HKD 1,292,127,000 year-over-year[18] - The group had bank borrowings of approximately HKD 36,264,000 as of September 30, 2019, compared to HKD 28,953,000 as of March 31, 2019, resulting in a debt-to-asset ratio of 2.2%[101] Revenue Breakdown - The supply chain management services generated revenue of HKD 321,456,000, down 37.5% from HKD 515,212,000 in the previous year[43] - The marine fishing business reported revenue of HKD 16,458,000, a decline of 46.8% compared to HKD 30,959,000 in the same period last year[43] - Total other income for the six months ended September 30, 2019, was HKD 4,492,000, down from HKD 13,697,000 in the same period of 2018[45] - The total revenue for the group, including all segments, was HKD 337,984,000 for the six months ended September 30, 2019[43] Expenses and Cost Management - The company reported a significant reduction in administrative expenses to HKD 22,152,000 from HKD 36,389,000 in the previous year[6] - The total employee cost for the period was approximately HKD 6,365,000, a decrease from HKD 6,498,000 in the same period last year[107] - Administrative expenses decreased slightly from HKD 36,400,000 to approximately HKD 22,200,000, influenced by non-recurring exchange losses and impairments[94] Shareholder Information - As of September 30, 2019, major shareholder Liu Yi holds 724,292,000 shares, representing approximately 17.14% of the issued share capital[129] - Wei Qing, a beneficial owner, holds 79,608,000 shares, which is approximately 1.88% of the issued share capital[118] - The company has not repurchased any shares during the reporting period[132] - No stock options have been granted, exercised, canceled, or lapsed since the adoption of the stock option plan[122] Corporate Governance - The company has adopted a code of conduct for directors' securities trading, confirming compliance with GEM listing rules throughout the period[135] - The Audit Committee, established in October 2001, consists of three independent non-executive directors, responsible for reviewing financial reporting and internal controls[138] - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the period and believes they have been prepared in accordance with applicable accounting standards and GEM Listing Rules[140] Future Outlook and Strategy - The company continues to focus on expanding its seafood supply chain management services and has established strategic partnerships with other supply chain companies[90] - The company plans to expand its fishing operations in Mozambique and Cambodia, which will involve hiring additional staff and increasing business activities[94] - The group will continue to seek investment and business opportunities to expand revenue sources through potential acquisitions[98] Risk Management - The group has implemented strict controls on overdue receivables to minimize credit risk, with management regularly reviewing overdue balances[76] - The group has no foreign exchange contracts or financial derivatives for hedging purposes as of September 30, 2019[102] - The group has no contingent liabilities as of September 30, 2019[105]

Financial Performance - The group's revenue for the three months ended June 30, 2019, was approximately HKD 159,388,000, a decrease of 53.5% compared to HKD 342,384,000 for the same period in 2018[3] - The group's profit for the period was approximately HKD 4,211,000, down 37.4% from HKD 6,738,000 in the previous year[3] - The profit attributable to equity holders of the company was approximately HKD 5,085,000, compared to HKD 7,234,000 in 2018, representing a decline of 29.6%[3] - Basic earnings per share for the period were approximately HKD 0.12 cents, down from HKD 0.22 cents in the same period last year[3] - The total comprehensive income for the period was HKD 6,391,000, compared to HKD 17, indicating a significant decline[5] - The company's net profit attributable to shareholders for the period was approximately HKD 5,085,000, a decrease from HKD 7,234,000 in the same period last year, representing a decline of about 29.6%[29] - Total revenue for the period decreased to approximately HKD 159,388,000, compared to HKD 342,384,000 in the same period last year, indicating a decline of approximately 53.5%[27] - The gross profit for the period was approximately HKD 18,032,000, down from HKD 21,919,000 in the same period last year, reflecting a decrease of about 17.5%[27] Revenue Breakdown - Revenue from supply chain management services was HKD 153,919,000, a decrease of 54.4% from HKD 337,690,000 in 2018[13] - Revenue from marine fishing business increased to HKD 5,429,000, up 54.5% from HKD 3,513,000 in the previous year[13] Expenses and Tax - The group incurred a tax expense of HKD 822,000 for the period, compared to HKD 4,650,000 in the previous year[15] - Administrative expenses decreased slightly from HKD 14,000,000 in the previous year to approximately HKD 12,000,000, as the company plans to expand its operations in Mozambique and Cambodia[29] - The group has a total employee cost of approximately HKD 3,700,000 for the period, compared to approximately HKD 3,300,000 in the previous year, reflecting an increase of about 12.1%[37] Assets and Liabilities - The company’s total assets as of June 30, 2019, were approximately HKD 1,678,091,000, a slight decrease from HKD 1,693,051,000 as of March 31, 2019[30] - The company’s bank borrowings amounted to approximately HKD 37,500,000 as of June 30, 2019, up from HKD 28,953,000 as of March 31, 2019[30] - The group has no contingent liabilities as of June 30, 2019[36] Dividends - The company did not declare any dividends for the period, consistent with the previous year[3] - The company did not recommend any dividend payment for the period, consistent with the previous year[22] Corporate Governance - The company has adopted a set of guidelines for directors' securities trading, ensuring compliance with GEM Listing Rules standards throughout the reporting period[57] - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing and supervising the group's financial reporting procedures and internal controls[59] - The company has implemented the corporate governance code as per GEM Listing Rules, with ongoing reviews of its governance structure for potential adjustments[58] - The roles of the chairman and CEO are currently held by the same individual, Liu Rongsheng, which the board believes provides strong and consistent leadership for long-term business planning[58] - The company has confirmed that its directors and major shareholders do not hold any interests in competing businesses during the reporting period[54] Strategic Initiatives - The company is expanding its seafood supply chain management services and has established strategic partnerships to enhance its operations in import and export trade, logistics, and storage[25] - The group is actively seeking investment and business opportunities to expand revenue sources and enhance shareholder value, particularly in the deep-sea fishing business[34] Employment - As of June 30, 2019, the group employed 160 staff members, an increase from 148 in the previous year, representing an increase of 8.1%[37] Financial Instruments - The group has no foreign exchange contracts or financial derivatives for hedging purposes as of June 30, 2019[31] - The group has no significant foreign exchange risk due to its treasury policy of holding bank deposits primarily in HKD or local currencies[31] - The group has not granted any stock options since the adoption of the stock option plan in October 2011[46] - The group has not made any significant investments, acquisitions, or disposals of subsidiaries during the period[35] - The group has not purchased, redeemed, or sold any of its listed securities during the period[52]

China Ocean Fishing Holdings Limited 中國海洋捕撈控股有限公司 (Incorporated in Bermuda with limited liability) （於百慕達註冊成立之有限公司） （Stock Code股份代號：8047） 2018-2019 Annual Report 年 報 China Oce an Fishin g H oldings Limited 中國海洋捕撈控股有限公 司 Annual Report 年報 2018-2019 2018-2019 Annual Report 年 報 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED (THE "STOCK EXCHANGE") GEM has been positioned as a market designed to accommodate small and mid-sized companies to which a higher investment risk may be attached than othe ...

[Report Summary](index=3&type=section&id=I.%20Report%20Summary) [Summary](index=3&type=section&id=Summary) Financial performance for the nine months ended December 31, 2018, shows decreased revenue but increased profit and equity holders' profit; no dividend recommended. Key Financial Indicators for the Nine Months Ended December 31, 2018 | Metric | 2018 (HKD) | 2017 (HKD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 778,853,000 | 823,932,000 | -5.5% | | Profit | 28,804,000 | 24,094,000 | +19.5% | | Profit Attributable to Equity Holders of the Company | 24,739,000 | 22,217,000 | +11.3% | | Basic Earnings Per Share | 0.67 Cents | 0.87 Cents | -23.0% | - The Board does not recommend the payment of any dividend (2017: nil)[4](index=4&type=chunk) [Financial Results](index=4&type=section&id=II.%20Financial%20Results) [Condensed Consolidated Statement of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) Unaudited consolidated statements of comprehensive income for the nine and three months ended December 31, 2018, detail key financial data. Key Financial Performance for the Nine Months Ended December 31, 2018 | Metric | 2018 (HKD Thousand) | 2017 (HKD Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 778,853 | 823,932 | -5.5% | | Cost of Services Provided and Goods Sold | (712,158) | (778,307) | -8.5% | | Gross Profit | 66,695 | 45,625 | +46.2% | | Other Income | 21,932 | 9,160 | +139.4% | | Administrative Expenses | (36,876) | (21,707) | +69.9% | | Profit Before Tax | 30,315 | 31,285 | -3.1% | | Income Tax Expense | (1,511) | (7,191) | -79.0% | | Profit for the Period | 28,804 | 24,094 | +19.5% | | Profit Attributable to Equity Holders of the Company | 24,739 | 22,217 | +11.3% | | Profit Attributable to Non-controlling Interests | 4,065 | 1,877 | +116.6% | Key Financial Performance for the Three Months Ended December 31, 2018 | Metric | 2018 (HKD Thousand) | 2017 (HKD Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 231,202 | 418,337 | -44.8% | | Gross Profit | 17,668 | 20,034 | -11.8% | | Profit Before Tax | 15,232 | 13,902 | +9.6% | | Profit for the Period | 14,401 | 10,578 | +36.1% | | Profit Attributable to Equity Holders of the Company | 14,903 | 8,701 | +71.3% | - Total Comprehensive (Loss) / Income for the Period was **HKD (42,780) Thousand**, while the **2017** period was **HKD 26,149 Thousand**, primarily due to Exchange Differences on Consolidation **(71,584) Thousand**[14](index=14&type=chunk)[15](index=15&type=chunk) [Earnings Per Share](index=5&type=section&id=Earnings%20Per%20Share) This section details basic and diluted earnings per share for the nine and three months ended December 31, 2018, including convertible bond impact. Earnings Per Share (Nine Months Ended December 31) | Metric | 2018 | 2017 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Basic EPS | HKD 0.67 Cents | HKD 0.87 Cents | -23.0% | | Diluted EPS | HKD 0.66 Cents | HKD 0.75 Cents | -12.0% | Earnings Per Share (Three Months Ended December 31) | Metric | 2018 | 2017 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Basic EPS | HKD 0.37 Cents | HKD 0.30 Cents | +23.3% | | Diluted EPS | HKD 0.37 Cents | HKD 0.30 Cents | +23.3% | - Diluted earnings calculation for **2018** nine months adjusted for convertible bond interest (net of tax), with no such adjustment in the **2017** corresponding period[38](index=38&type=chunk) [Notes to Financial Statements](index=6&type=section&id=III.%20Notes%20to%20Financial%20Statements) [1. Company Information](index=6&type=section&id=1.%20Company%20Information) This section outlines the company's registration, listing, registered office, principal place of business, and primary business activities. - The Company was incorporated in Bermuda as an exempted company on **June 7, 2001**, with shares listed on GEM of the Hong Kong Stock Exchange[26](index=26&type=chunk) - Main businesses: investment holding, with subsidiaries primarily engaged in supply chain management services, money lending, and marine fishing[26](index=26&type=chunk) [2. Compliance Statement](index=6&type=section&id=2.%20Compliance%20Statement) This section explains that the unaudited condensed consolidated financial information is prepared based on GEM Listing Rules and reviewed by the Audit Committee, but not audited. - Financial information prepared according to GEM Listing Rules, unaudited but reviewed by the Company's Audit Committee[27](index=27&type=chunk) - Accounting policies consistent with audited consolidated financial statements for the year ended **March 31, 2018**[27](index=27&type=chunk) [3. Revenue and Other Income](index=7&type=section&id=3.%20Revenue%20and%20Other%20Income) This section details the Group's revenue composition for the reporting period, including supply chain management services, goods sales from marine fishing, and interest income from customer loans. Revenue Composition (Nine Months Ended December 31) | Business Type | 2018 (HKD Thousand) | 2017 (HKD Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Supply Chain Management Services | 735,076 | 803,831 | -8.6% | | Marine Fishing Business | 42,297 | 6,928 | +510.5% | | Interest Income from Loans to Customers | 1,480 | 13,173 | -88.8% | | **Total Revenue** | **778,853** | **823,932** | **-5.5%** | - Marine fishing business revenue grew significantly, while supply chain management services and money lending interest income decreased[29](index=29&type=chunk) [4. Other Income](index=8&type=section&id=4.%20Other%20Income) This section provides a breakdown of the Group's other income for the reporting period, including interest income from other loans, government grants, and miscellaneous income. Other Income (Nine Months Ended December 31) | Income Type | 2018 (HKD Thousand) | 2017 (HKD Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Interest Income from Other Loans | 9,720 | 2,160 | +350.0% | | Government Grants Income | 6,559 | 6,295 | +4.2% | | Miscellaneous Income | 5,653 | 705 | +701.8% | | **Total Other Income** | **21,932** | **9,160** | **+139.4%** | - Interest income from other loans and miscellaneous income increased significantly, driving a substantial rise in total other income[31](index=31&type=chunk) [5. Income Tax Expense](index=8&type=section&id=5.%20Income%20Tax%20Expense) This section details the Group's income tax expense for the reporting period, including Hong Kong Profits Tax and PRC Enterprise Income Tax, along with applicable tax rates. Income Tax Expense (Nine Months Ended December 31) | Tax Type | 2018 (HKD Thousand) | 2017 (HKD Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Hong Kong Profits Tax | 500 | 1,541 | -67.5% | | PRC Enterprise Income Tax | 1,011 | 5,650 | -82.1% | | **Tax Deducted for the Period** | **1,511** | **7,191** | **-79.0%** | - Hong Kong Profits Tax is provisioned at a rate of **16.5%**, and PRC Enterprise Income Tax is calculated at the applicable tax rate[32](index=32&type=chunk)[33](index=33&type=chunk) [7. Dividends](index=10&type=section&id=7.%20Dividends) The Board