Financial Performance - Revenue for the six months ended September 30, 2020, was HK$63,983,000, a decrease of 16.7% compared to HK$76,831,000 in the same period of 2019[6]. - Gross profit for the period was HK$7,704,000, slightly down from HK$7,882,000, resulting in a gross margin of approximately 12.0%[6]. - Profit before tax was HK$5,600,000, a significant recovery from a loss of HK$2,126,000 in the previous year[6]. - Profit attributable to equity holders of the Company was HK$5,459,000, compared to a loss of HK$2,160,000 in the same period last year[6]. - Earnings per share attributable to ordinary equity holders was HK$2.10, recovering from a loss per share of HK$0.83 in the previous year[6]. - Total comprehensive income for the period was HK$16,298,000, compared to a loss of HK$18,643,000 in the same period of 2019[8]. - The company reported a profit of HK$5,459,000 for the period, compared to a loss of HK$2,160,000 in the previous period[24]. - Total comprehensive income for the period was HK$16,298,000, which includes HK$10,401,000 from associates[24]. Assets and Liabilities - Non-current assets increased to HK$466,445,000 from HK$457,689,000 as of March 31, 2020[13]. - Current assets rose to HK$209,567,000, up from HK$199,474,000 as of March 31, 2020[13]. - Total equity increased to HK$621,822,000 from HK$604,730,000 as of March 31, 2020[19]. - The company reported a net current asset position of HK$167,779,000, compared to HK$161,772,000 as of March 31, 2020[13]. - Cash and cash equivalents at the end of the period amounted to HK$159,888,000, a decrease from HK$167,716,000 in the previous year[25]. - Segment liabilities increased to HK$44,774,000 as of September 30, 2020, compared to HK$41,279,000 as of March 31, 2020, marking an increase of approximately 12.1%[37]. - The total trade and bills payables as of September 30, 2020, were HK$10,536,000, up from HK$9,970,000 as of March 31, 2020[69]. Cash Flow and Investments - Net cash flows from operating activities were negative at HK$2,011,000, compared to positive cash flow of HK$1,398,000 in the prior period[25]. - The company generated HK$6,837,000 from investing activities, down from HK$8,446,000 in the previous year[25]. - New bank and trust receipt loans totaled HK$43,529,000, while repayments were HK$41,076,000[25]. - The Group received dividends of HK$7,490,000 from associates during the period[25]. Segment Information - The Group has two reportable operating segments: trading of frozen meats, seafood, and vegetables in Hong Kong, and an "other" segment including restaurant operations and marketing of meat products[29]. - Segment performance is evaluated based on reportable segment profit/loss, which is a measure of adjusted profit/loss before tax[30]. - Segment revenue for the trading segment was HK$56,563,000 for the six months ended September 30, 2020, down from HK$68,785,000 in the same period of 2019, representing a decrease of approximately 17.5%[35]. - The overall trading business revenue in frozen meats decreased by 17.3% compared to the same period last year, impacted by COVID-19 restrictions on dining and tourism[100][104]. Acquisitions and Growth Strategies - Four Seas Japan acquired an additional 55% of Miyata Holding Co., Ltd. for approximately HK$71, increasing its equity interest from 15% to 70%[56]. - Provisional goodwill arising from the acquisition of Miyata was HK$85,744,000, primarily due to synergies from product integration[61]. - The acquisition of Miyata is expected to strengthen the Group's sales capabilities and expand its customer base, particularly in the high-quality food market in Hong Kong and mainland China[114]. - The Group aims to consolidate relationships with overseas suppliers and increase procurement from other meat-producing countries to mitigate supply chain challenges[114]. Shareholder Information - Approximately 34.95% of the Company's total issued shares are held by Tai Tak Fung, Stephen, indicating significant insider ownership[122]. - The total interests of substantial shareholders in the company are recorded in accordance with Section 336 of the SFO[139]. - The number of ordinary shares in issue during the period remained constant at 259,586,000 shares[53]. Corporate Governance - The company has complied with most of the Corporate Governance Code provisions, with specific deviations noted regarding the appointment terms of non-executive directors[154]. - The company confirmed that all directors complied with the required standards of dealings as set out in the Code of Conduct throughout the review period[163]. - There were changes in the board of directors, including the retirement of Mr. Tai Chun Leung and Mr. Chan Kay Cheung, and the appointment of Mr. Wong, Louis Chung Yin as an independent non-executive director[168][169]. Miscellaneous - The Group does not recommend the payment of any interim dividend for the six months ended September 30, 2020, consistent with the previous year[98][102]. - The Group's short-term employee benefits for key management personnel were HK$1,767,000, a decrease of 3.3% from HK$1,828,000 in the previous year[78]. - The interim results announcement for the Company was published on the Hong Kong Exchanges and Clearing Limited website and the Company's website[177].
香港食品投资(00060) - 2021 - 中期财报