Financial Performance - The Group recorded a revenue of approximately HK$579 million for the year ended March 31, 2024, which remained generally constant compared to the previous year[14]. - The Group recorded a revenue of approximately HK$579 million for the year ended March 31, 2024, representing a decrease of approximately HK$17 million compared to the previous financial year[33]. - The Group recorded a revenue of approximately HK$579 million for the year, representing a decrease of approximately 3% compared to HK$596 million in the previous financial year[34]. - Gross profit for the year was approximately HK$343 million, an increase of approximately 4% from HK$331 million in the last financial year[34]. - The segment result decreased to approximately HK$139 million from HK$189 million in the previous year, primarily due to reduced rental income from agricultural produce exchange market operations[34]. - Other income and gains increased significantly to approximately HK$119 million from HK$25 million, mainly due to the reversal of aged payables[35]. - General and administrative expenses were approximately HK$161 million, a slight decrease from HK$164 million in the previous year[39]. - Selling expenses decreased to approximately HK$36 million from HK$47 million, attributed to reduced operations and promotional activities in the agricultural produce exchange market[39]. - Finance costs decreased to approximately HK$112 million from HK$118 million, mainly due to lower financial costs of unsecured notes[39]. - The profit attributable to owners of the parent increased to approximately HK$7.4 million from HK$6.8 million in the previous financial year[50]. - Income tax expense rose to approximately HK$56 million from HK$9 million, primarily due to increased tax provisions from higher assessable profits[43]. Market Operations - The Group managed a total of eleven agricultural produce exchange markets in mainland China, covering regions such as Wuhan, Huangshi, and Suizhou[15]. - The business operations spanned across various provinces, including Hubei, Henan, Guangxi, Jiangsu, and Liaoning[15]. - The Group is expanding new business sales channels by leveraging its eleven agricultural produce exchange markets across the country, enhancing its competitive edge through a light asset model and modern management systems[23]. - The Group's operational data collection and analysis through electronic management platforms aim to enhance market efficiency and reduce transaction costs for purchasers and vendors[21]. - The Group's focus on rural revitalization aligns with national policies aimed at ensuring food security and eliminating large-scale poverty[20]. - The Group's agricultural produce exchange markets are subject to various environmental laws, and independent environmental assessments have shown no material adverse effects on business operations[118]. Strategic Development - The Group has successfully stabilized its market share despite a challenging business environment, achieving standardized management processes through its self-developed ERP management platform[21]. - The Group is actively developing cold chain, cold storage, and logistics warehouses in existing market cities, Greater Bay area cities, and provincial capital cities, anticipating significant growth in the cold storage industry due to national policy support[22]. - The Group aims to improve its profit model and explore new markets by adopting a diversified market management model, focusing on long-term benefits for the Company and its shareholders[24]. - The Group's forward-looking business strategy includes cooperation with various partners using an asset-light strategy to expand operations in China[24]. - The Group aims to leverage its leading industry position and technology infrastructure to build a national agricultural product trading market network despite the ongoing economic challenges in China[136]. - The Chinese government's 2024 policy emphasizes agricultural revitalization, food security, and rural development, which aligns with the Group's operational focus[140]. Corporate Social Responsibility - The Group donated approximately HK$3,244 million worth of supplies to charitable organizations in the PRC and local communities during the year, emphasizing its commitment to corporate social responsibility[28]. - The Group is committed to food safety management, providing regular training to employees to ensure high-quality and safe agricultural produce[28]. Financial Position - As of March 31, 2024, the Group's total cash and cash equivalents amounted to approximately HK$243 million, down from approximately HK$312 million as of March 31, 2023[89]. - Total assets as of March 31, 2024, were approximately HK$4,638 million, a decrease from approximately HK$4,915 million as of March 31, 2023[89]. - The Group's gearing ratio remained stable at approximately 49.9% as of March 31, 2024, consistent with the previous year[89]. - The ratio of total interest-bearing bank borrowings and unsecured notes to total assets was approximately 28% as of March 31, 2024, slightly down from approximately 29% in the previous year[90]. - Outstanding capital commitments as of March 31, 2024, were approximately HK$167 million, down from approximately HK$195 million as of March 31, 2023[97]. - The Group provided guarantees of approximately HK$22.8 million to customers for loans from banks, a decrease from approximately HK$36.1 million in the previous year[97]. - The carrying amount of pledged assets to secure interest-bearing bank borrowings was approximately HK$2,208 million as of March 31, 2024, compared to approximately HK$2,168 million in the previous year[98]. - The Group's total interest-bearing borrowings as of March 31, 2024, amounted to HK$1,315 million, a decrease from HK$1,402 million as of March 31, 2023[105]. - Financial institution borrowings increased to HK$935 million with an effective interest rate of 6% as of March 31, 2024, compared to HK$882 million at 5% in the previous year[105]. - Non-financial institution borrowings were HK$380 million at an effective interest rate of 10% as of March 31, 2024, slightly down from HK$396 million at the same rate in the previous year[105]. Governance and Management - The Group's management team has extensive experience in corporate governance, business development, and mergers and acquisitions, enhancing its operational capabilities[146]. - The Group's remuneration policy is periodically reviewed, aiming to attract and retain competent individuals committed to long-term success[132]. - The Company has a strong board with members holding advanced degrees in business and finance[161]. - The Board comprises four executive Directors and three independent non-executive Directors, ensuring a balanced composition for effective governance[177]. - The Company emphasizes transparency, accountability, integrity, and independence in its corporate governance practices[170]. - The Board is responsible for setting corporate policy and overall strategy, as well as overseeing the management of the Group's business[179]. - The Company has a policy for regular review of corporate governance practices and compliance with legal and regulatory requirements[191][194]. - The Board's composition and the appointment of company secretary and auditors are reviewed to maintain effective governance[187][194]. - The Company has arranged appropriate insurance coverage for legal actions against the Directors, ensuring protection for governance practices[179]. - The Board held six meetings during the financial year and an annual general meeting, with over 99% of votes cast in favor of all resolutions proposed at the 2023 AGM[197][199][200].
中国农产品交易(00149) - 2024 - 年度财报