中国海洋发展(08047) - 2024 - 中期财报

Performance Highlights This section provides an overview of the Group's key financial performance indicators for the six months ended September 30, 2022 Overview of Key Financial Indicators For the six months ended September 30, 2022, the Group's revenue decreased by 13.4% year-on-year to approximately HKD 194 million, with loss slightly widening to HKD 9.72 million, and basic loss per share at HKD 0.14 cents Key Financial Indicators | Indicator | For the six months ended September 30, 2022 | For the six months ended September 30, 2021 | | :--- | :--- | :--- | | Revenue | Approximately HKD 194,386,000 | Approximately HKD 224,442,000 | | Loss for the period | Approximately HKD 9,721,000 | Approximately HKD 9,455,000 | | Loss attributable to owners of the Company | Approximately HKD 8,694,000 | Approximately HKD 8,277,000 | | Basic loss per share | Approximately HKD 0.14 cents | Approximately HKD 0.17 cents | | Interim dividend | Not recommended for distribution | Nil | Financial Statements This section presents the Group's condensed consolidated financial statements, including the statement of comprehensive income, statement of financial position, and statement of cash flows Condensed Consolidated Statement of Comprehensive Income For the six months ended September 30, 2022, the Group's revenue was HKD 194 million, a decrease from HKD 224 million in the prior period, with gross profit falling to HKD 11.30 million, resulting in a loss for the period of HKD 9.72 million Condensed Consolidated Statement of Comprehensive Income (HK$'000) | Item (HK$'000) | For the six months ended September 30, 2022 | For the six months ended September 30, 2021 | | :--- | :--- | :--- | | Revenue from contracts with customers | 194,386 | 224,442 | | Gross profit | 11,295 | 14,746 | | Profit from operations | 3,222 | 4,008 | | Loss before tax | (9,644) | (8,890) | | Loss for the period | (9,721) | (9,455) | | Loss attributable to owners of the Company | (8,694) | (8,277) | Condensed Consolidated Statement of Financial Position As of September 30, 2022, the Group's total assets decreased to HKD 928 million from HKD 1,027 million, with total liabilities falling to HKD 469 million, and net assets declining by approximately 12.7% to HKD 459 million Condensed Consolidated Statement of Financial Position (HK$'000) | Item (HK$'000) | September 30, 2022 (Unaudited) | March 31, 2022 (Audited) | | :--- | :--- | :--- | | Non-current assets | 313,577 | 340,493 | | Current assets | 614,451 | 686,977 | | Total assets | 928,028 | 1,027,470 | | Current liabilities | 339,535 | 354,708 | | Non-current liabilities | 129,221 | 146,460 | | Total liabilities | 468,756 | 501,168 | | Net assets | 459,272 | 526,302 | Condensed Consolidated Statement of Cash Flows For the six months ended September 30, 2022, the Group reported a net cash outflow from operating activities of HKD 28.81 million, with net cash inflow from financing activities of HKD 28.29 million, resulting in a decrease in cash and cash equivalents to HKD 1.036 million Condensed Consolidated Statement of Cash Flows (HK$'000) | Item (HK$'000) | For the six months ended September 30, 2022 | For the six months ended September 30, 2021 | | :--- | :--- | :--- | | Net cash generated from/(used in) operating activities | (28,810) | (11,533) | | Net cash generated from financing activities | 28,292 | 2,633 | | Net (decrease)/increase in cash and cash equivalents | (518) | (8,900) | | Cash and cash equivalents at beginning of period | 1,554 | 9,656 | | Cash and cash equivalents at end of period | 1,036 | 756 | Management Discussion and Analysis This section provides a detailed review of the Group's business operations, financial performance, liquidity, and key risk factors Business Review and Outlook During the period, the Group's core business remained seafood supply chain management services, with overseas fishing operations generating no revenue due to COVID-19 related license renewal difficulties, prompting management to seek alternative solutions and explore new investment opportunities - The Group's core business is seafood supply chain management services, vertically integrated with fishing operations[91][114] - Due to COVID-19 travel restrictions, renewal of overseas government fishing licenses was hindered, resulting in no revenue from fishing operations during the period; management is seeking alternative solutions[91] - Looking ahead, management will continue to seek investment and business opportunities, further exploring deep-sea fishing operations leveraging the new team's experience[117] Financial Review During the period, the Group's revenue decreased from HKD 224 million to HKD 194 million, with gross profit falling to HKD 11.30 million and gross margin declining from 6.6% to 5.8%, while loss attributable to owners of the Company slightly increased to HKD 8.69 million Financial Performance Summary | Item | For the six months ended September 30, 2022 | For the six months ended September 30, 2021 | | :--- | :--- | :--- | | Revenue | Approximately HKD 194,386,000 | Approximately HKD 224,442,000 | | Gross profit | Approximately HKD 11,295,000 | Approximately HKD 14,746,000 | | Gross margin | 5.8% | 6.6% | | Loss attributable to owners of the Company | Approximately HKD 8,694,000 | Approximately HKD 8,277,000 | - Administrative expenses decreased from HKD 11.40 million to HKD 10.10 million, primarily due to tightened cost controls and reduced travel expenses caused by the pandemic[117] Liquidity, Financial Resources and Capital Structure As of September 30, 2022, the Group's total assets were approximately HKD 928 million, with bank balances and cash of HKD 1.036 million, and a gearing ratio of 6.26%, while facing unhedged HKD and RMB exchange rate risks Liquidity and Capital Structure Indicators | Indicator | September 30, 2022 | March 31, 2022 | | :--- | :--- | :--- | | Total assets | Approximately HKD 928,028,000 | Approximately HKD 1,027,470,000 | | Bank balances and cash | Approximately HKD 1,036,000 | Approximately HKD 1,554,000 | | Bank borrowings | Approximately HKD 58,090,000 | Approximately HKD 66,370,000 | | Gearing ratio | 6.26% | 6.46% | - The Group's principal transactions are denominated in HKD and RMB, exposing it to foreign exchange risk, which is not hedged[96] - As of September 30, 2022, the Group had no assets pledged[120] Risk Factors The Group's operations face multiple risks, including market, operational, investment, financial (interest rate, foreign exchange, credit, liquidity), and human resources risks, all managed through established frameworks and procedures - Key risks identified by the Group include: - Market risk: The risk of declining profitability due to market price fluctuations - Operational risk: The risk of loss resulting from inadequate or failed internal processes, people, systems, or from external events - Investment risk: The possibility of investment losses, managed through detailed analysis and authorization systems - Financial risk: Including interest rate, foreign exchange, credit, and liquidity risks - Human resources risk: The risk of inability to attract and retain key talent[132][133][134][125][135] Other Disclosures This section covers additional disclosures regarding dividends, securities, directors' and major shareholders' interests, and corporate governance practices Dividends and Securities The Board did not recommend an interim dividend for the period, and neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, with no share options granted, exercised, cancelled, or lapsed since the adoption of the share option scheme in 2011 - The Board did not recommend the payment of any interim dividend for the current period (2021: Nil)[137] - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[146] - Since the adoption of the share option scheme, no share options have been granted, exercised, cancelled, or lapsed[140] Directors' and Major Shareholders' Interests As of September 30, 2022, several directors held ordinary shares, with Mr. Cai Haiming holding the highest at 2.47%, and major shareholder Mr. Liu Yi holding approximately 11.91% of the Company's shares in a long position, all disclosed as required Directors' Shareholdings | Name of Director | Number of ordinary shares held | Approximate percentage of issued share capital | | :--- | :--- | :--- | | Ms. Wei Qing | 68,124,000 | 1.12% | | Mr. Fan Guocheng | 800,000 | 0.01% | | Mr. Cai Haiming | 150,532,857 | 2.47% | - Major shareholder Mr. Liu Yi beneficially owned 724,292,000 shares in a long position, representing approximately 11.91% of the issued share capital[158] Corporate Governance The Company has adopted and largely complied with the Corporate Governance Code, with a deviation where the roles of Chairman and Chief Executive Officer are combined under Mr. Liu Rongsheng, which the Board believes provides strong and consistent leadership, and the Audit Committee has reviewed and approved the interim financial statements - The Company complies with the Corporate Governance Code, but deviates from Code Provision A.2.1, where the roles of Chairman and Chief Executive Officer are not separate and are both held by Mr. Liu Rongsheng[142] - The Board believes that the current combined structure of Chairman and Chief Executive Officer provides strong and consistent leadership in planning and executing the Company's long-term business plans and strategies[142] - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the period and considers them to be properly prepared with sufficient disclosures[155][150]