Financial Performance - The company reported a revenue of RMB 143.6 million for the year ended June 30, 2022, a decrease of 26.6% compared to RMB 195.6 million for the previous year[3]. - The net loss for the year was approximately RMB 20.7 million, compared to a net profit of RMB 4.0 million in the previous year, representing a decline of 617.5%[3]. - Total assets decreased by 13.4% to RMB 230.6 million from RMB 266.3 million in the previous year[4]. - Cash and cash equivalents saw a significant decline of 71.4%, dropping to RMB 48.1 million from RMB 167.9 million[4]. - For the fiscal year ending June 30, 2022, the company reported total revenue of approximately RMB 143,600,000, a decrease of 26.6% compared to RMB 195,600,000 in the previous year[22]. - The planting business generated revenue of RMB 8,510,000, down 67.5% from RMB 26,174,000 in the previous year, primarily due to the impact of lockdown measures on citrus care and maintenance[23][25]. - The fruit distribution business recorded revenue of RMB 123,155,000, a decrease of 27.3% from RMB 169,444,000, attributed to import difficulties and adverse weather conditions affecting fruit quality[23][25]. - Other income for the fiscal year was approximately RMB 7,600,000, down from RMB 9,400,000 in the previous year, mainly from business cooperation agreements with individual farmers[27]. - The group reported a loss attributable to shareholders of approximately RMB 20,700,000 for the year ended June 30, 2022, compared to a profit of RMB 4,000,000 in 2021, primarily due to reduced orange harvests and increased distribution expenses[33]. - The group had a net cash position of approximately RMB 48,100,000 as of June 30, 2022, down from RMB 167,900,000 in 2021, with no debt instruments or bank borrowings[42]. Business Operations and Strategy - The company is exploring new fruit varieties for import to expand its product offerings and mitigate risks associated with local supply constraints[12]. - The company has initiated trial planting of passion fruit to diversify its agricultural operations and improve gross margins[7]. - The company completed the acquisition of a company at the end of 2021, which has begun to show positive results in its air conditioning distribution business[8]. - The company remains optimistic about the growth of its air conditioning distribution business due to expected increased demand driven by climate change[11]. - The company is closely monitoring the innovation in its planting business and implementing cost control measures to enhance productivity[9]. - The company anticipates that the performance of its planting business will stabilize and recover to pre-pandemic levels depending on the overall demand for fruits in China[9]. - The company is actively seeking to expand its fruit distribution business by acquiring new customers and establishing more supply agreements across different cities in China[20]. - The company aims to diversify its business portfolio and enhance profitability in response to the challenging operating environment in the fruit industry[21]. - The company’s brand "Royalstar" has strengthened its recognition and relationships with suppliers and customers, contributing to business growth and market penetration[20]. Cost Management and Expenses - Employee costs for the year ended June 30, 2022, were approximately RMB 8,400,000, down 7.7% from RMB 9,100,000 in 2021, mainly due to a voluntary salary waiver by an executive director and reduced accommodation expenses[29]. - Distribution and other operating expenses increased to approximately RMB 6,600,000 for the year ended June 30, 2022, compared to RMB 900,000 in 2021, driven by a significant rise in imported fruit service fees, which reached approximately RMB 6,100,000[30]. - General and administrative expenses rose to approximately RMB 16,700,000 for the year ended June 30, 2022, from RMB 14,200,000 in 2021, largely due to office relocation costs and termination fees paid to a farmer[31]. - The group continues to adopt strict cost control and prudent financial policies to manage operations effectively[44]. Governance and Compliance - The board of directors did not recommend a final dividend for the year ended June 30, 2022, compared to no dividend in 2021[39]. - The company has undergone changes in its board of directors, with new appointments made in 2022 to enhance governance[81]. - The board composition was adjusted with the appointment of independent non-executive directors, ensuring compliance with listing rules regarding board member independence[80]. - The company has established a remuneration committee to review and approve the overall remuneration policy and compensation packages for executive directors and senior management[111]. - The board is responsible for the long-term strategy, management, R&D innovation, and financial performance of the group[127]. - The company has implemented a standard code of conduct for securities trading by directors, confirming compliance for the fiscal year ending June 30, 2022[124]. - The company has established a clear organizational structure to define responsibilities and authority, ensuring effective governance[128]. - The board emphasizes the importance of a strong corporate culture for long-term business sustainability, promoting values such as integrity, collaboration, and ethical conduct[156]. Environmental, Social, and Governance (ESG) Initiatives - The company maintains its environmental, social, and governance (ESG) management structure and processes consistent with the previous reporting period[174]. - The management team is responsible for evaluating ESG activities and drafting action plans based on updates from regional and departmental managers[174]. - The company continues to invest resources to monitor ESG matters, policies, and performance to ensure compliance with relevant laws and regulations[175]. - Key performance indicators related to ESG matters are regularly reviewed and monitored, particularly in legal and social compliance[179]. - The company has identified significant environmental aspects, including air emissions, wastewater, waste discharge, resource usage, and climate change[179]. - The company aims to create a "green environment" by implementing policies to minimize adverse environmental impacts while balancing cost reduction[181]. - The company adheres to various environmental laws, including the Environmental Protection Law of the People's Republic of China and the Air Pollution Prevention and Control Law[182]. - The company encourages employees to conserve water and use resources responsibly[200]. Emissions and Resource Management - Direct emissions of sulfur oxides decreased by 11.27% to 0.63 kg in 2022 from 0.71 kg in 2021[187]. - Direct emissions of nitrogen oxides decreased by 10.83% to 866.14 kg in 2022 from 971.29 kg in 2021[187]. - Direct emissions of particulate matter decreased by 10.81% to 40.17 kg in 2022 from 45.04 kg in 2021[187]. - Direct emissions of CO2 equivalent decreased by 12.41% to 114.11 tons in 2022 from 130.28 tons in 2021[187]. - The company aims to reduce air pollutants and CO2 equivalent emissions at the Hainan plantation to within 1% to 3% in the coming year[189]. - The company has implemented measures to train employees on energy and fuel efficiency to reduce emissions[189]. - The energy consumption at the Houpou plantation was 170,729 kWh for the year ending June 30, 2022, reflecting a slight increase of 0.49% compared to 169,900 kWh in the previous year[197]. - The electricity consumption at the China office surged by 346.76%, reaching 8,332 kWh, due to relocation to a larger office space[197]. - The Hong Kong office recorded a significant decrease in electricity consumption by 80.35%, with usage dropping to 20,904 kWh[197]. - Water consumption at the Houpou plantation increased by 7.09%, amounting to 44,100 cubic meters[199]. - The Hong Kong office's water consumption decreased by 86.15%, with usage dropping to 32 cubic meters[199].
亚洲果业(00073) - 2022 - 年度财报