(Incorporated in the Cayman Islands and continued in Bermuda with limited liability) (於開曼群島註冊成立及於百慕達存續之有限公司) Stock Code 股份代號 : 8120 China Demeter Financial Investments Limited 國農金融投資有限公司中期 報告 Interim Report Characteristics of GEM of The Stock Exchange of Hong Kong Limited ("Stock Exchange") 香港聯合交易所有限公司（「聯交所」）GEM之特點 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. Pros ...

Financial Performance - The Company reported a loss attributable to owners of approximately HK$13,592,000 for the three months ended 31 March 2022, compared to a loss of approximately HK$1,024,000 in the same period last year, representing an increase in loss of approximately 1,228%[9]. - Revenue from continuing operations was approximately HK$21,914,000 for the Period, a decrease of approximately HK$10,048,000 or 31.4% compared to HK$31,962,000 in the same period last year[9]. - Gross profit from continuing operations for the Period was approximately HK$15,217,000, down from approximately HK$21,160,000 in the same period last year, indicating a decline of approximately 28.1%[9]. - Loss before tax for the Period was HK$14,506,000, compared to a loss of HK$1,159,000 in the same period last year[29]. - Loss for the period from continuing operations was HK$14,515,000, compared to HK$1,211,000 in the same period last year[29]. - Total comprehensive expense for the period was HK$13,580,000, compared to HK$700,000 in the same period last year[29]. - Total comprehensive income for the period attributable to owners of the Company was a loss of HK$13,785,000, reflecting a significant decline from a loss of HK$700,000 in the prior year[31]. - Loss per share for the period was HK$2.22, compared to a loss of HK$0.41 per share in the previous year[31]. - The company reported a loss from continuing operations of HK$14,720,000 for the three months ended March 31, 2022, compared to HK$1,188,000 in 2021[106]. - The company recorded a net loss attributable to owners of approximately HK$13,592,000 for the three months ended 31 March 2022, compared to a net loss of HK$1,024,000 for the same period in 2021, indicating a significant deterioration in performance[128]. Revenue Breakdown - Revenue from the food and beverage business decreased to HK$16,032,000, down 40.3% from HK$26,817,000 in the previous year[47]. - Revenue from alcoholic beverage distribution and miscellaneous business increased to HK$170,000, compared to HK$14,000 in the same period last year[47]. - The company reported total revenue of HK$21,914,000 for the three months ended March 31, 2022, a decrease of 31.5% from HK$31,962,000 in the same period of 2021[49]. - Revenue from continuing operations decreased by approximately 31.4% to approximately HK$21,914,000 for the period, down from HK$31,962,000 in the previous year[129]. - Revenue from the food and beverage business was approximately HK$16,032,000, down from HK$26,817,000 in the previous year, reflecting a substantial decrease[129]. - Revenue from the distribution of alcoholic beverages and miscellaneous business was approximately HK$170,000, significantly up from HK$14,000 in the previous year[135]. Expenses and Costs - General and administrative expenses increased to HK$26,734,000 from HK$24,055,000, reflecting an increase of approximately 11.2%[23]. - The group incurred a current tax expense of HK$9,000 for the three months ended March 31, 2022, down from HK$52,000 in the same period of 2021, a decrease of 82.7%[79]. - The finance costs for the group decreased to HK$950,000 in 2022 from HK$1,149,000 in 2021, representing a reduction of 17.3%[64]. - The group recognized a reversal of impairment loss of HK$15,000 on loan and interest receivables, which was not present in the previous year[57]. - The company incurred general and administrative expenses of HK$178,000 for the discontinued operations, a decrease from HK$2,774,000 in the previous year[91]. Operational Challenges - The Company continues to face challenges in its operations, as indicated by the significant losses and decrease in revenue[9]. - The COVID-19 pandemic has created significant challenges for the food and beverage and money lending businesses, impacting revenue and operational stability[141][150]. - The management acknowledges significant challenges in the near term due to global economic conditions, including tightening liquidity and inflation[177]. - The company faced challenges in education services, including student retention amid unstable schooling and potential declines in student population due to emigration[183][185]. Strategic Developments - The group completed the disposal of its food and beverage business in Singapore on January 14, 2022, for a total consideration of approximately HK$29,000[81]. - The group has ceased to hold any equity interest in Amber Glory International Limited following the completion of the disposal[84]. - The Group plans to cease operations in Singapore to focus resources on its food and beverage business in Hong Kong[176]. - The Group plans to optimize its curriculum and allocate more resources to enhance the quality of teaching in response to the needs of students and parents[158]. - The company is upgrading its securities service mobile application to include new features such as remote account opening and E-IPO application to enhance user experience[182][185]. - The company is optimizing its store network and re-examining geographical advantages to adapt to changes in the local business environment[181][185]. Miscellaneous - The financial statements for the period are unaudited but have been reviewed by the Audit Committee, ensuring a level of oversight[38]. - The Group is assessing the impact of new Hong Kong Financial Reporting Standards on its financial position, indicating a proactive approach to regulatory compliance[42]. - Interest income from securities clients rose to HK$2,352,000, up 82.7% from HK$1,288,000 in the previous year[49]. - The group reported a total income of HK$2,060,000 for the three months ended March 31, 2022, a decrease of 40.2% compared to HK$3,446,000 in the same period of 2021[57]. - Government grants received amounted to HK$1,489,000, down from HK$2,687,000 in the previous year, indicating a decline of 44.7%[57]. - The weighted average number of ordinary shares for the period was 612,118,000, significantly higher than 248,484,000 in the previous year due to a rights issue[102].

Company Overview - China Demeter Financial Investments Limited is incorporated in the Cayman Islands and continued in Bermuda with limited liability[1]. - The company is listed on the GEM of the Stock Exchange of Hong Kong, which accommodates small and mid-sized companies with higher investment risks[2]. - The registered office of the company is located at Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda[13]. - The company’s stock code is 8120 on the Hong Kong Stock Exchange[16]. - The company has a compliance officer and an audit committee to ensure governance and regulatory compliance[11]. - The company’s website is http://www.chinademeter.com, providing additional information and resources[16]. Financial Performance - For the year ended December 31, 2021, the Group recorded revenue of approximately HK$177,485,000, an increase of 29.7% from HK$136,872,000 in 2020[18]. - The net loss attributable to owners of the Company for the year was approximately HK$20,558,000, a decrease from HK$28,453,000 in 2020[18]. - Gross profit for the year was approximately HK$117,122,000, up from HK$86,187,000 in 2020[32]. - The impairment loss on goodwill was approximately HK$9,999,000, and the impairment loss of property, plant, and equipment was approximately HK$7,171,000[32]. - The Group recorded a net loss attributable to owners of approximately HK$20,558,000 for the year ended December 31, 2021, an improvement from a loss of HK$28,453,000 in 2020[32]. - The Group recognized a fair value gain on financial assets through profit or loss of approximately HK$8,567,000 during the year[20]. - The Group recorded an impairment loss on loans and interest receivables of approximately HK$0.4 million for the year ended December 31, 2021, a significant decrease from approximately HK$4.3 million in 2020[56]. Business Segments - The Group's food and beverage business generated revenue of approximately HK$156,788,000, up from HK$106,926,000 in 2020, representing a growth of 46.7%[20]. - The revenue from the financial services business increased to approximately HK$12,777,000, compared to HK$5,433,000 in 2020, marking a growth of 134.3%[20]. - The turnover of the alcoholic beverage distribution and miscellaneous business decreased to approximately HK$1,264,000 from HK$14,224,000 in 2020, a decline of 91.1%[20]. - The Group's financial services business includes brokerage services, margin financing, asset management, and underwriting services[85]. Strategic Plans and Challenges - The Group plans to optimize its restaurant portfolio and assess potential restaurant sites amid ongoing challenges from the COVID-19 pandemic[22]. - The Group will actively review its loan portfolio and conduct comprehensive assessments of collaterals to minimize default risk[23]. - The Group's management expects continued market instability due to geopolitical tensions and economic uncertainties[23]. - The Group plans to enhance its trading systems to improve customer trading experience and competitiveness in financial services[27]. - Significant resources have been allocated to enhance online platforms and digital programs to attract customers, especially during the pandemic[28]. - The Group aims to capitalize on the growing interest from mainland Chinese investors, reinforcing Hong Kong's position as an international financial hub[27]. Customer Engagement and Marketing - The Group is actively promoting its products and services on various social media platforms to enhance consumer engagement[28]. - The Group plans to expand its restaurant delivery and take-away business by preparing take-away menus and cooperating with food delivery apps[170]. - The Group will implement stringent cost control measures while allocating more human resources to digital marketing to widen the client base and build brand awareness[181]. - The Group intends to expand its chain restaurants at a reasonable pace in different shopping malls near residential areas in Hong Kong once the effects of the COVID-19 pandemic lessen[186]. Risk Management and Compliance - The Group's assessment of credit risk includes both quantitative and qualitative information, considering historical experience and forward-looking data[59]. - The Group conducts strict credit assessments to evaluate the repayment ability of customers, considering factors such as guarantors and past payment records[71]. - The Group has implemented internal control measures to manage credit risk, including regular analysis and monitoring of the loan portfolio[79]. - The Group will adjust interest rates and loan-to-value ratios in response to market conditions to optimize the balance between risk and capital[80]. Operational Adjustments Due to COVID-19 - The COVID-19 pandemic significantly impacted the food and beverage industry, leading to a substantial drop in revenue, prompting the management to conduct impairment assessments on the Group's assets[154][157]. - The Group is closely monitoring government updates on COVID-19 and has implemented health measures such as regular staff testing and maintaining hygiene standards[172]. - The Group's restaurant operations are subject to additional legal requirements, including staff testing every 7 days and using a mobile app for tracking visits[172]. - The management has implemented measures to address challenges posed by the COVID-19 outbreak, although specific strategies were not detailed in the provided content[168]. Future Outlook - The Group believes that the prospects for steady ongoing business growth are strong, particularly in the second half of the year[186]. - The Group will continue to provide daily online seminars to improve customer engagement[187]. - The Group will carefully review developments in all segments and explore new investment opportunities to sustain long-term profitability[188].

Financial Performance - The Company reported a loss attributable to owners of approximately HK$1,683,000 for the nine months ended 30 September 2021, compared to a loss of approximately HK$17,785,000 in the same period last year[3]. - Revenue from continuing operations was approximately HK$127,495,000 for the nine months, representing an increase of approximately HK$35,515,000 from approximately HK$91,980,000 last year[3]. - Gross profit from continuing operations for the period was approximately HK$84,727,000, compared to approximately HK$59,666,000 in the same period last year[3]. - Loss before tax for the nine months was approximately HK$964,000, compared to a loss of HK$14,316,000 in the previous year[8]. - For the nine months ended September 30, 2021, the total loss was HK$2,055,000, a significant improvement from HK$18,071,000 in the previous year, indicating a reduction of 88.6%[10]. - The total comprehensive expense for the period attributable to owners of the company was HK$389,000 for the three months ended September 30, 2021, compared to HK$1,219,000 in the same period of 2020, reflecting a decrease of 68.1%[12]. - The company reported a total comprehensive expense of HK$1,460,000 for the nine months ended September 30, 2021, down from HK$18,780,000 in the previous year, marking a decrease of 92.2%[12]. - The loss per share for the nine months ended September 30, 2021, was HK$0.50, consistent with the previous year's loss per share of HK$7.16, indicating a significant reduction in losses[12]. - The loss for the period attributable to owners of the Company for the three months ended September 30, 2021 was HK$687,000, an improvement from a loss of HK$1,029,000 in the same period of 2020, indicating a reduction of approximately 33.3%[60]. - For the nine months ended September 30, 2021, the loss attributable to owners of the Company was HK$1,683,000, significantly improved from a loss of HK$17,785,000 in the same period of 2020, reflecting a reduction of approximately 90.5%[60]. Revenue and Business Segments - Total revenue for the nine months included HK$112,537,000 from the food and beverage business, up from HK$71,819,000 last year[8]. - Food and beverage business revenue for the nine months ended September 30, 2021, was HK$112,537,000, up from HK$71,819,000 in 2020, representing a growth of 56.7%[19]. - Revenue from the distribution of alcoholic beverages and miscellaneous business was approximately HK$1,109,000, compared to HK$8,868,000 in the same period last year[103]. - Revenue from external customers of China Demeter Securities Limited amounted to approximately HK$9,162,000, significantly up from HK$3,241,000 in the previous year[112]. - The company is engaged in various businesses including alcoholic beverage distribution, food and beverage, money lending, and financial services, which may impact future performance and strategic direction[13]. Expenses and Costs - General and administrative expenses for the nine months were approximately HK$98,769,000, compared to HK$75,451,000 last year[8]. - Loan interest income for the nine months was HK$1,586,000, down from HK$4,929,000 in the previous year[8]. - The Group's bank interest income for the nine months ended September 30, 2021, was HK$19,000, down from HK$79,000 in 2020[21]. - Interest on lease liabilities for the three months ended 30 September 2021 was HK$801,000, a decrease of 14.2% from HK$934,000 in the same period of 2020[29]. - Interest on other borrowings for the three months ended 30 September 2021 was HK$109,000, a decrease of 39.7% compared to HK$181,000 in the same period of 2020[29]. Government Grants and Other Income - The Group received government grants totaling HK$3,539,000 for the nine months ended September 30, 2021, compared to HK$9,792,000 in the same period of 2020[22]. - Consultancy and referral fee income increased to HK$1,700,000 for the nine months ended September 30, 2021, from HK$450,000 in 2020, marking a rise of 277.8%[21]. - The Group reported a net foreign exchange gain of HK$243,000 for the nine months ended September 30, 2021, compared to a loss of HK$320,000 in 2020[21]. Discontinued Operations - The company experienced a loss from discontinued operations of HK$2,843,000 for the nine months ended September 30, 2020, which was not present in the current reporting period[9]. - Loss on disposal from discontinued operations for the period was HK$2,400,000, contributing to the overall loss reported[53]. - The loss for the period from discontinued operations attributable to owners of the Company was HK$2,799,000, which was included in the consolidated statement of profit or loss[55]. - The company completed the disposal of its agricultural business on 22 April 2020 for a total consideration of HK$1,152,000[44]. Strategic Initiatives and Future Outlook - The Company continues to focus on improving operational efficiency and reducing losses in its ongoing business segments[60]. - The Group expects pressure on profit in the next quarter due to rising costs and challenges in the local economy[111]. - The Group plans to proactively identify opportunities for opening and managing new restaurants in Hong Kong, considering recent changes in vacancy rates of shopping centers[123]. - The Group aims to develop underwriting and placing activities through various channels and focus on promoting margin financing business[124]. - The Group will review its business strategies carefully and conservatively to cope with the ever-changing economic situation[124]. Share Capital and Rights Issue - The rights issue proposal aims to raise not less than approximately HK$45.9 million by issuing not less than 459,088,545 rights shares at a subscription price of HK$0.10 per share[146]. - The rights issue was fully underwritten by Trinity Worldwide Capital Holding Limited[146]. - The Rights Issue was completed on July 29, 2021, raising approximately HK$45.9 million before expenses, with net proceeds of approximately HK$43.5 million after deducting relevant expenses[148]. - Approximately HK$9.0 million of the net proceeds will be allocated to capital expenditure for expanding the Group's food and beverage business segment[148]. - As of September 30, 2021, the total number of share options available for issue under the Share Option Scheme was 15,302,951 shares, representing approximately 2.50% of the issued shares of the Group[187]. Compliance and Governance - The audit committee of the Board reviewed the unaudited results, ensuring compliance with GEM Listing Rules[5]. - The Company has not assumed the exercise of potential ordinary shares under the share options scheme for the period ended 30 September 2021 due to their anti-dilutive effect[70]. - No significant transactions or contracts involving directors or connected entities existed during the period[195].

Financial Performance - The Company reported a loss attributable to owners of approximately HK$996,000 for the six months ended 30 June 2021, a significant improvement compared to a loss of approximately HK$16,756,000 in the same period last year[9]. - Revenue from continuing operations was approximately HK$81,087,000 for the Period, representing an increase of approximately HK$21,978,000 compared to HK$59,109,000 in the same period last year, reflecting a growth of approximately 37.2%[9]. - Gross profit from continuing operations for the Period was approximately HK$53,513,000, compared to HK$38,927,000 in the same period last year, indicating an increase of approximately 37.4%[9]. - The total revenue for the six months ended 30 June 2021 was HK$81,087,000, up from HK$59,109,000 in the same period last year, marking a year-over-year increase of approximately 37.2%[14]. - Profit before tax for the six months ended 30 June 2021 was HK$684,000, a recovery from a loss of HK$13,705,000 in the same period last year[14]. - For the three months ended June 30, 2021, the profit from continuing operations was HK$28,000 compared to a loss of HK$3,201,000 in 2020[17]. - For the six months ended June 30, 2021, the profit from continuing operations was HK$996,000, a significant improvement from a loss of HK$13,957,000 in 2020[17]. - The total comprehensive expense for the period attributable to owners of the Company was HK$371,000 for the three months ended June 30, 2021, compared to HK$6,350,000 in 2020[19]. - The total comprehensive expense for the six months ended June 30, 2021, was HK$1,071,000, compared to HK$17,561,000 in 2020[19]. - The basic earnings per share for the three months ended June 30, 2021, was HK$0.02, recovering from a loss of HK$4.16 in 2020[19]. Dividends - The Company did not recommend the payment of any interim dividend for the six months ended 30 June 2021, consistent with the previous year where no dividend was declared[9]. - The Group did not recommend any interim dividend for the six months ended 30 June 2021, compared to nil for the same period in 2020[12]. Expenses and Income - General and administrative expenses increased to approximately HK$66,466,000 for the six months ended 30 June 2021, compared to HK$49,232,000 in the same period last year[14]. - Other income, other gains and losses amounted to approximately HK$6,594,000 for the six months ended 30 June 2021, compared to HK$2,067,000 in the same period last year, reflecting a substantial increase[14]. - Total income tax expense for the six months ended June 30, 2021, was HK$727,000, an increase from HK$303,000 in the same period of 2020[88]. - The company reported a total of HK$2,606,000 in other income for the three months ended June 30, 2021, compared to HK$829,000 in the same period of 2020, indicating a significant increase[79]. Assets and Liabilities - As of June 30, 2021, total assets less current liabilities amounted to HK$126,745,000, a decrease from HK$142,042,000 as of December 31, 2020, representing a decline of approximately 10.8%[22]. - Current assets increased to HK$184,028,000 from HK$171,582,000, reflecting a growth of about 7.8%[21]. - Current liabilities increased to HK$119,720,000 from HK$100,982,000, marking a rise of about 18.5%[21]. - The company's net assets stood at HK$109,078,000, slightly down from HK$110,149,000, reflecting a decrease of about 1%[22]. - The company's cash and cash equivalents were reported at HK$33,878,000, down from HK$35,597,000, a decrease of approximately 4.8%[21]. - The total equity attributable to owners of the company was HK$107,737,000, down from HK$108,766,000, indicating a decline of about 0.95%[22]. Cash Flow - Net cash generated from operating activities for the six months ended June 30, 2021, was HK$17,133,000, an increase of 22.4% compared to HK$13,954,000 in 2020[30]. - Net cash used in investing activities was HK$2,997,000, significantly higher than HK$181,000 in the previous year[30]. - Net cash used in financing activities increased to HK$15,831,000 from HK$13,595,000 in 2020, reflecting a rise of 16.5%[30]. - Cash and cash equivalents at the end of the period stood at HK$33,878,000, compared to HK$30,113,000 at the end of June 2020, marking an increase of 9.2%[30]. Segment Information - The Group's principal business segments include alcoholic beverage distribution, food and beverage, money lending, children education services, financial services, and securities investment[32][33]. - Revenue from external customers for the six months ended June 30, 2021, was HK$81,087,000, an increase from HK$59,109,000 in the same period of 2020, representing a growth of 37.2%[70]. - Revenue from Hong Kong for the six months ended June 30, 2021, was HK$73,466,000, compared to HK$56,690,000 in 2020, reflecting a growth of 29.5%[70]. - Revenue from Singapore increased significantly to HK$7,621,000 for the six months ended June 30, 2021, up from HK$2,419,000 in 2020, marking a growth of 215.5%[70]. Credit and Receivables - The Group maintains strict control over outstanding loans and interest receivables to minimize credit risk[15]. - The ageing analysis of loans and interest receivables shows that HK$10,900,000 were past due as of 30 June 2021, compared to HK$1,566,000 as of 31 December 2020[144]. - The total amount of trade receivables, after accounting for credit losses, was HK$65,399,000 as of June 30, 2021, compared to HK$55,944,000 as of December 31, 2020[162]. - The Group's allowance for credit losses remained stable at HK$4,310,000 as of June 30, 2021, unchanged from December 31, 2020[152]. - The trade receivables from non-financial services business decreased to HK$683,000 as of June 30, 2021, down from HK$8,620,000 as of December 31, 2020[162]. Discontinued Operations - The company completed the disposal of its agricultural business on April 22, 2020, for a total consideration of HK$1,152,000[99]. - The loss for the period from the discontinued operation will be restated to align with the audited results for the year ended December 31, 2020[112]. - The loss for the period attributable to owners from discontinued operations was HK$3,163,000 for the six months ended June 30, 2020, with no loss reported for the same period in 2021[121]. Compliance and Governance - The Company confirmed that the information contained in the report is accurate and complete in all material respects, with no misleading or deceptive statements[6]. - The financial statements for the six months ended June 30, 2021, were prepared in accordance with HKAS 34 and have been reviewed by the Audit Committee[37][38]. - The Group's financial position remains stable, with no significant impact from the adoption of new HKFRSs effective from January 1, 2021[43][44].

Financial Performance - The revenue from continuing operations for the Group was approximately HK$36,089,000, representing an increase of approximately HK$13,728,000 compared to HK$22,361,000 in the same period last year[4]. - Gross profit from continuing operations for the period was approximately HK$23,594,000, compared to HK$15,825,000 in the same period last year[4]. - The loss for the period from continuing operations was HK$1,047,000, a significant improvement from a loss of HK$11,032,000 in the same period last year[10]. - Total comprehensive expense for the period amounted to HK$700,000, compared to HK$11,211,000 in the same period last year[10]. - Other income for the period was approximately HK$3,988,000, compared to HK$1,238,000 in the same period last year[10]. - The cost of sales and services for the period was HK$12,495,000, compared to HK$6,536,000 in the same period last year[10]. - The fair value loss on financial assets through profit or loss was HK$561,000, compared to HK$4,626,000 in the same period last year[10]. - The company reported a loss of HK$1,024,000 for the three months ended March 31, 2021, compared to a loss of HK$10,756,000 in the same period of 2020, indicating a significant improvement[12]. - Basic loss per share for the period was HK$0.67, compared to HK$6.79 in the same period last year, indicating a substantial reduction in loss per share[12]. - The total comprehensive income for the period showed a significant reduction in expenses, improving overall financial health[79]. Revenue Breakdown - The Group's total revenue included HK$30,944,000 from food and beverage business, HK$766,000 from loan interest income, HK$1,238,000 from provision of children education services, and HK$3,127,000 from provision of financial services[8]. - Revenue from the food and beverage business increased to HK$30,944,000 in Q1 2021, up from HK$18,268,000 in Q1 2020, representing a growth of approximately 69%[27]. - Loan interest income decreased to HK$766,000 in Q1 2021 from HK$2,115,000 in Q1 2020, reflecting a decline of about 64%[27]. - The provision of financial services generated approximately HK$3,127,000 in revenue, compared to HK$746,000 in the same period of 2020[90]. - Revenue from the provision of children education services amounted to approximately HK$1,238,000, an increase from HK$1,019,000 year-on-year, representing a growth of 21%[112]. Operational Changes - The company decided to temporarily suspend its agricultural business operations in February 2020 due to unsatisfactory financial performance, significantly impacted by the outbreak of swine fever and COVID-19, leading to a decrease in demand for feedstock products[48]. - The company completed the disposal of its agricultural business on April 22, 2020, ceasing to hold any equity interest in the Tony China Group, which previously contributed to its operations[55]. - All restaurants held by the joint venture in Singapore ceased operations due to the COVID-19 pandemic, significantly impacting revenue[128]. - The company aims to maintain and increase market presence in Asia through partnerships with exclusive brewery partners from Europe[93]. - The company plans to optimize its restaurant portfolio through consolidation and expansion to maintain overall competitiveness[132]. Financial Strategy and Risks - The Group plans to maintain or downsize the scale of its money lending business to reduce credit risk during uncertain times[110]. - The operating environment is expected to remain challenging due to ongoing tensions between the US and China and the COVID-19 pandemic, prompting the company to adopt a flexible and prudent operational approach[132]. - The Board expects the performance of the securities investment business to contribute positive returns for the Group in the near future[124]. - The management team will continuously assess various factors affecting the company's financial performance[133]. Governance and Compliance - The Company aims to comply with all provisions of the Corporate Governance Code and will regularly review its practices[168]. - The Audit Committee consists of three independent non-executive Directors[170]. - The report will remain on the GEM website for a minimum period of seven days from the date of publication[170]. - The Company has made specific inquiries to all Directors regarding compliance with the required standards of dealings[168].

國農金融投資有限公司 China Demeter Financial Investments Limited (Incorporated in the Cayman Islands and continued in Bermuda with limited liability) 6 KM BIXAN Watter B.H Tittel trime (於開曼群島註冊成立及於百慕達存續之有限公司) (Stock Code 股份代號：8120) Annual 年 Report 報 2020 CHARACTERISTICS OF GEM OF THE STOCK EXCHANGE OF HONG KONG LIMITED ("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 E ...

Financial Performance - The Company reported a loss attributable to owners of approximately HK$16,912,000 for the nine months ended 30 September 2020, compared to a loss of approximately HK$37,370,000 in the same period last year[9]. - Revenue from continuing operations was approximately HK$91,980,000 for the period, representing an increase of approximately HK$32,450,000 compared to approximately HK$59,530,000 in the same period last year[9]. - Gross profit from continuing operations for the period was approximately HK$59,666,000, compared to approximately HK$42,658,000 in the same period last year[9]. - Total revenue for the three months ended September 30, 2020, was HK$32,871,000, representing a 50.9% increase from HK$21,777,000 in the same period of 2019[14]. - Gross profit for the three months ended September 30, 2020, was HK$20,739,000, up 27.5% from HK$16,282,000 in the prior year[14]. - Loss before tax for the three months ended September 30, 2020, was HK$611,000, a significant improvement compared to a loss of HK$13,596,000 in the same period of 2019[14]. - Total comprehensive expense for the period was HK$1,219,000, a reduction from HK$15,092,000 in the same period of 2019[17]. - Loss for the period from discontinued operations was HK$1,220,000, compared to a loss of HK$14,278,000 in the same period of 2019[17]. - For the three months ended September 30, 2020, the loss attributable to owners of the Company from continuing operations was HK$1,029,000, a significant improvement compared to a loss of HK$13,182,000 in the same period of 2019[18]. - For the nine months ended September 30, 2020, the total loss attributable to owners of the Company was HK$16,912,000, down from HK$37,370,000 in the previous year, indicating a reduction of approximately 54.8%[18]. Dividend and Shareholder Information - The Board of Directors does not recommend the payment of any interim dividend for the nine months ended 30 September 2020, consistent with the previous year where no dividend was paid[9]. - The loss per share for the three months ended September 30, 2020, was HK$0.67, a substantial decrease from HK$9.01 in the same quarter of 2019[21]. - The loss per share for the nine months ended September 30, 2020, was HK$11.05, compared to HK$24.42 for the same period in 2019, reflecting a decrease of approximately 54.7%[21]. - The total comprehensive expense for the three months ended September 30, 2020, was HK$1,029,000, down from HK$14,553,000 in 2019[18]. - The total comprehensive expense for the nine months ended September 30, 2020, was HK$17,584,000, compared to HK$38,065,000 in the previous year, indicating a reduction of approximately 53.8%[18]. - No interim dividend was recommended for the nine months ended September 30, 2020, consistent with the previous year where no dividend was paid[89]. Business Operations and Segments - The Company operates in the GEM market, which is designed for small and mid-sized companies, indicating a higher investment risk compared to other companies listed on the Stock Exchange[2]. - The Group is engaged in various businesses including alcoholic beverage distribution, food and beverage, money lending, and financial services, which may impact future revenue streams[24]. - The food and beverage business generated revenue of HK$25,145,000 for the three months ended September 30, 2020, compared to HK$18,429,000 in 2019, marking a 36.5% increase[14]. - The financial services segment reported revenue of HK$1,776,000 for the three months ended September 30, 2020, compared to HK$453,000 in 2019, reflecting a substantial increase[14]. - Revenue from the food and beverage business reached approximately HK$71,819,000, compared to HK$44,127,000 in the same period of 2019[124]. - Revenue from the alcoholic beverage distribution and miscellaneous business was approximately HK$8,868,000, up from HK$3,304,000 in the same period of 2019[128]. - The money lending business generated interest income of approximately HK$4,929,000, down from HK$6,867,000 in the previous year[139]. - Revenue from children education services was approximately HK$3,039,000, a decrease from HK$3,637,000 in the previous year[142]. Financial Position and Liabilities - The total accumulated losses as of September 30, 2020, were HK$254,724,000, reflecting an increase from HK$248,524,000 in the previous year[99]. - The company experienced an impairment loss of loan and interest receivables of HK$4,310,000 for the nine months ended September 30, 2020, compared to HK$6,188,000 in 2019[41]. - The company recorded a loss on disposal of HK$(2,052,000) for the nine months ended September 30, 2020, compared to no loss reported in 2019[75]. - The total liabilities associated with the agricultural business included trade and other payables of HK$31,000[69]. Compliance and Governance - The report includes particulars given in compliance with the GEM Listing Rules of The Stock Exchange of Hong Kong Limited[5]. - The financial statements for the nine months ended September 30, 2020, are unaudited but have been reviewed by the Audit Committee, ensuring a level of oversight[31]. - The Company confirms that the information contained in the report is accurate and complete in all material respects[4]. Market Conditions and Future Outlook - The Group anticipates that the financial and economic situation due to the COVID-19 pandemic may negatively impact borrowers' financial positions and repayment abilities[140]. - The Group plans to optimize educational programs and invest in online learning to retain existing students amid potential class suspensions[144]. - The Group remains optimistic about the development potential of the Hong Kong market and aims to improve operational efficiency and strengthen revenue[169]. - The management expects the impact of the ongoing situation to continue into the year 2020[132]. - The Board expects positive returns from the securities investment business in the near future and will monitor performance closely to mitigate potential financial risks[156]. Acquisitions and Disposals - The company completed the disposal of its agricultural business on April 22, 2020, for a total consideration of HK$1,152,000[60]. - Following the disposal, the financial results of the Tony China Group will no longer be consolidated into the company's results, and the company has ceased its agricultural business[174]. - The acquisition of Wala Wala Limited was completed for a cash consideration of HK$2,300,000, with identifiable net liabilities of HK$551,000 at the time of acquisition[122].

Financial Performance - The Company reported a loss attributable to owners of approximately HK$15,883,000 for the six months ended 30 June 2020, compared to a loss of approximately HK$23,577,000 in the same period last year, representing a 32.5% improvement [8]. - Revenue from continuing operations was approximately HK$59,109,000 for the Period, an increase of approximately HK$21,356,000 or 56.5% compared to HK$37,753,000 in the same period last year [8]. - Gross profit from continuing operations for the Period was approximately HK$38,927,000, compared to HK$26,376,000 in the same period last year, reflecting a 47.7% increase [8]. - The loss before tax for the six months was HK$13,705,000, compared to a loss of HK$22,760,000 in the same period last year, indicating a 39.8% reduction in losses [12]. - The Company reported other income of HK$2,067,000 for the six months, compared to a loss of HK$2,309,000 in the same period last year, indicating a positive turnaround [12]. - The total comprehensive (expense)/income for the period of HK$5,385 for the six months ended June 30, 2020, compared to HK$23,384 in the same period of 2019, representing a 77.0% decrease [18]. - The loss for the six months ended June 30, 2020, attributable to owners of the Company was HK$15,883, a decrease of 32.9% compared to HK$23,577 in the same period of 2019 [18]. - The loss for the three months ended June 30, 2020, attributable to owners of the Company was HK$ (5,491,000), compared to HK$ (18,522,000) for the same period in 2019, representing a decrease of 70.4% [146]. Revenue and Business Segments - Total revenue for the six months included HK$46,674,000 from the food and beverage business, up from HK$25,698,000 in the same period last year, marking an increase of 81.7% [12]. - Segment revenue for alcoholic beverage distribution was HK$4,958,000 for the six months ended 30 June 2020, compared to HK$3,124,000 in 2019, representing a 58.7% increase [58]. - The Group's segment profit for the food and beverage business was HK$1,641,000 for the six months ended 30 June 2020, compared to a loss of HK$6,109,000 in 2019 [58]. - The money lending segment generated revenue of HK$4,725,000 for the six months ended 30 June 2020, compared to HK$2,127,000 in 2019, marking a 122.4% increase [58]. - Revenue from external customers for the six months ended June 30, 2020, was HK$59,109,000, an increase from HK$37,753,000 in the same period of 2019, representing a growth of 56.6% [76]. Assets and Liabilities - The Company reported a significant increase in trade receivables, which rose to HK$21,565 as of June 30, 2020, compared to HK$12,572 as of December 31, 2019, reflecting a 71.1% increase [24]. - Current liabilities increased to HK$164,411 as of June 30, 2020, compared to HK$51,219 as of December 31, 2019, marking a 221.5% rise [24]. - The Company’s non-current assets totaled HK$53,235 as of June 30, 2020, down from HK$59,329 as of December 31, 2019, indicating a decrease of 10.5% [24]. - Total assets less current liabilities decreased to HK$140,543,000 as of June 30, 2020, down from HK$156,007,000 as of December 31, 2019, representing a decline of approximately 9.93% [27]. - Net assets decreased to HK$120,658,000 as of June 30, 2020, compared to HK$138,539,000 as of December 31, 2019, reflecting a decrease of about 12.91% [27]. Cash Flow and Financing - Net cash generated from operating activities was HK$13,954,000 for the six months ended June 30, 2020, compared to a cash outflow of HK$18,072,000 for the same period in 2019 [38]. - The company reported a net cash used in financing activities of HK$13,595,000 for the period, with no financing activities reported in the previous year [38]. - The company utilized HK$10,712,000 from the contribution surplus account to eliminate accumulated losses during the period, compared to HK$0 in the same period last year [32]. Dividends and Share Information - The Company does not recommend the payment of any interim dividend for the six months ended 30 June 2020, consistent with the previous year where no dividend was paid [8]. - Basic loss per share for the three months ended June 30, 2020, was (1.50) HK cents, compared to (0.27) HK cents for the same period in 2019 [188]. - Basic loss per share for the six months ended June 30, 2020, was (1.26) HK cents, compared to (0.34) HK cents for the same period in 2019 [188]. - The weighted average number of ordinary shares for the purposes of calculating basic and diluted loss per share remained constant at 153,030,000 shares for both 2020 and 2019 [147]. Discontinued Operations - The loss from discontinued operations for the six months ended June 30, 2020, was HK$1,926, compared to HK$522 in the same period of 2019, reflecting a 268.4% increase in losses [18]. - The company completed the disposal of its agricultural business on April 22, 2020, for a total consideration of HK$1,152,000 [125]. - The loss for the period from the discontinued operation attributable to the owners of the company was HK$2,290,000 for the three months ended June 30, 2020 [141]. - The loss on disposal of the agricultural business was HK$264,000 for the three months ended June 30, 2020 [141]. Credit Quality and Receivables - The allowance for credit losses decreased from HK$6,304,000 in December 2019 to HK$4,512,000 in June 2020, indicating improved credit quality [197]. - Total receivables after accounting for credit losses were HK$52,396,000 as of June 30, 2020, compared to HK$66,805,000 at the end of 2019, a reduction of approximately 21.5% [197]. - The Group maintains strict control over outstanding loans and interest receivables to minimize credit risk, with regular reviews of overdue balances [198]. Business Strategy and Operations - The company is engaged in multiple business segments, including alcoholic beverage distribution, food and beverage, money lending, and financial services, indicating a diversified business strategy [41]. - The Group's principal activities include operating restaurants, cafes, and take-away outlets in Singapore, with a 50% ownership interest in BLVD Cayman Limited [195]. - The interim report highlights the importance of monitoring segment performance and allocating resources effectively to enhance operational efficiency [69].

Financial Performance - The Company reported a loss attributable to owners of approximately HK$10,392,000 for the three months ended 31 March 2020, compared to a loss of approximately HK$5,055,000 in the same period last year[3]. - Loss before tax for the three months ended 31 March 2020 was HK$11,032,000, compared to a loss of HK$4,445,000 in the same period last year[8]. - The Company’s total comprehensive expense for the period was HK$11,211,000, compared to HK$4,613,000 in the same period last year[8]. - For the three months ended March 31, 2020, the company reported a loss attributable to owners of the Company of HK$10,756,000, compared to a loss of HK$5,055,000 for the same period in 2019, representing an increase in loss of 112.5%[10]. - Total comprehensive expense for the period attributable to owners of the Company was HK$10,994,000, compared to HK$4,594,000 in the previous year, indicating a 139.5% increase[10]. - The loss per share for continuing and discontinued operations was HK(6.79) cents, compared to HK(3.30) cents in the same period last year[10]. - The loss attributable to owners of the Company for the period was HK$10,392,000, compared to a loss of HK$5,055,000 in the previous year, representing a 105.2% increase in loss[47]. - The loss from discontinued operations was HK$364,000, a decrease from a profit of HK$483,000 in the previous year[49]. - The loss from continuing operations attributable to owners of the Company was HK$10,756,000, compared to HK$4,572,000 in the previous year, indicating a 134.3% increase in loss[51]. - Basic loss per share for the period was HK$0.24, compared to a loss of HK$0.32 per share in the previous year[53]. Revenue and Profitability - Revenue from continuing operations was approximately HK$22,361,000 for the Period, representing an increase of approximately HK$4,806,000 compared to HK$17,555,000 in the same period last year[3]. - Gross profit from continuing operations for the Period was approximately HK$15,825,000, compared to gross profit of approximately HK$12,501,000 in the same period last year[3]. - The revenue breakdown included HK$18,268,000 from alcoholic beverage distribution, HK$2,115,000 from food and beverage business, and HK$1,019,000 from loan interest income[7]. - The Company’s gross profit margin from continuing operations improved to approximately 70.7% for the Period, compared to 71.0% in the same period last year[3]. - Revenue from the alcoholic beverage distribution business decreased to HK$213,000, down 81.3% from HK$1,137,000 in the previous year[21]. - Revenue from the food and beverage business increased to HK$18,268,000, up 51.8% from HK$12,047,000 in the same period last year[21]. - Loan interest income for the period was HK$2,115,000, a decrease of 7.2% from HK$2,279,000 in 2019[21]. - Other income for the period was HK$1,238,000, a decrease from HK$3,063,000 in the previous year, indicating a decline of 59.6%[22]. - Revenue for the first quarter of 2020 was HK$1,388,000, a decrease of 81.8% compared to HK$7,234,000 in the same period of 2019[34]. - Cost of sales for the first quarter of 2020 was HK$1,460,000, down from HK$7,299,000 in 2019, reflecting a decrease of 80%[34]. - Profit from discontinued operations for the first quarter of 2020 was HK$404,000, compared to a loss of HK$536,000 in the same period of 2019[34]. Business Operations and Changes - The company is engaged in multiple business segments including alcoholic beverage distribution, food and beverage, money lending, children education services, financial services, and securities investment[12]. - The company decided to temporarily suspend its agricultural business operations in February 2020 due to unsatisfactory financial performance and decreased demand[30]. - The agricultural business was fully disposed of on April 22, 2020, constituting a discloseable and connected transaction under GEM Listing Rules[30]. - The Company acquired 100% equity interest in Wala Wala Limited for a cash consideration of HK$2,300,000[71]. - The Group completed the disposal of its feedstock products business on April 22, 2020, ceasing to hold any equity interest in the Target Group[101]. - The Company entered into a sales and purchase agreement to sell all equity interest in Tony China Limited and East Shine Group Limited for a total consideration of HK$1,152,000[99]. Corporate Governance - The Company has adopted and complied with the Corporate Governance Code provisions, except for Code Provision A.2.1 regarding the separation of the roles of chairman and CEO[130]. - The Audit Committee consists of three independent non-executive Directors and has reviewed the first quarterly results for the three months ended March 31, 2020[131]. - The company aims to regularly review and update its corporate governance practices to comply with all Code Provisions[130]. - The company has confirmed that all directors have complied with the required standards of dealings as set out in the GEM Listing Rules during the period[130]. - The chairman of the company is responsible for overall leadership and strategic planning, while the CEO manages day-to-day operations[130]. Share Capital and Transactions - As of 31 March 2020, the issued and fully paid share capital was HK$1,530,000, with 153,029,000 shares outstanding[66]. - The weighted average number of ordinary shares for calculating basic and diluted loss per share remained at 153,030,000 shares for both 2020 and 2019[40]. - As of March 31, 2020, the Company had 153,029,515 shares issued, with Mr. Ng Ting Kit holding 25,925,000 shares, representing approximately 16.94% of the share capital[122]. - No share options were granted or exercised during the period, and none remained outstanding as of March 31, 2020[103]. - There were no significant transactions or contracts involving Directors or their connected entities during the period[106]. - The Company did not purchase, redeem, or sell any of its listed securities or those of its subsidiaries during the period ended March 31, 2020[105]. - No pre-emptive rights provisions exist under the Company's bye-law or Bermuda laws[104]. Market Outlook and Future Plans - The Board expects the performance of the securities investment business to contribute positive returns in the near future[90]. - The Group expects steady development in the loan business this year based on the current market environment and sentiment[95]. - The Group plans to commit more resources to businesses with sustainability potential and continue seeking investment opportunities for growth[99].