Financial Performance - For the financial year ended 31 March 2021, the Group's consolidated revenue was HK$131,120,000, a decrease from HK$140,048,000 in 2020, representing a decline of approximately 6.6%[21] - The loss attributable to equity holders of the Company was HK$4,162,000, significantly improved from a loss of HK$24,111,000 in 2020, indicating a reduction in loss by approximately 82.7%[21] - The frozen meat trading turnover recorded HK$114,020,000, down from HK$125,544,000 in 2020, reflecting a decline of about 9.2%[35] - Overall revenue decreased by approximately 9.2% to HK$131,120,000 compared to HK$140,048,000 in the previous year due to the impact of COVID-19 pandemic[69] - The loss from continuing operations for the year was HK$3,739,000, compared to a loss of HK$24,056,000 in the previous year, indicating an improvement[115] Profitability and Cost Management - The Group's gross profit from frozen meats trading improved despite the overall turnover decline, indicating effective cost management strategies[35] - The overall gross profit margin improved despite the decline in sales, attributed to the focus on high-end meat sales[56] - Gross profit margin increased to 12.2% from 10.0% in the previous year, with trading operations showing a margin of 5.2% (up from 3.4%)[79] - Operating expenses to sales ratio decreased to 16.0% from 17.4%, mainly due to reduced impairment losses and government grants related to COVID-19[79] Business Development and Strategy - The Group opened a new restaurant "Gyumai" in February 2021, featuring high-quality beef options, aiming to enhance its presence in the high-end catering segment[37] - The Group plans to introduce more high-quality meat products and explore new sourcing territories to enhance business development[47] - The acquisition of 70% of Miyata Holdings Co., Ltd. by FSMHL is expected to boost business growth in the food sector[39] - The Group aims to capitalize on the potential of the Greater Bay Area market and expand into the Japanese market through its partnership with Miyata[48] - The Group adopted flexible pricing and procurement strategies to navigate the challenges posed by the pandemic and market conditions[29] Joint Ventures and Partnerships - The share of profit from Four Seas Mercantile Holdings Limited was HK$9,035,000, a turnaround from a loss of HK$5,940,000 in 2020[40] - The Group maintained a 29.98% equity interest in Four Seas Mercantile Holdings Limited as of 31 March 2021[38] - FSMHL reported a profit of HK$9,035,000 for the financial year ended 31 March 2021, compared to a loss of HK$5,940,000 in 2020[83][86] - FSMHL's distribution network includes department stores, supermarkets, convenience stores, and specialty stores, contributing to steady sales during the pandemic[88] Market Conditions and Challenges - The COVID-19 pandemic and African Swine Fever impacted the supply chain, leading to increased procurement of frozen meat products from overseas[22] - The manufacturing business saw increased demand as consumers focused on food safety during the pandemic, supported by certifications such as HACCP and ISO[90][94] - The Group is cautiously optimistic about post-pandemic economic recovery and is actively seeking suitable locations at reasonable rents[65] Financial Position and Liquidity - As of 31 March 2021, FSMHL had banking facilities of HK$220,753,000, with only 10% utilized, indicating strong liquidity[99] - The Group's cash and cash equivalents amounted to HK$145,088,000 as of 31 March 2021[101] - The Group's bank borrowings totaled HK$220,753,000, with 10% utilized as of 31 March 2021[101] - Total assets as of 31 March 2021 were HK$684,036,000, while total liabilities were HK$59,164,000, resulting in a net asset position[118] Corporate Governance and Management - The Company has received annual confirmations of independence from all independent non-executive directors[138] - The directors' remuneration is reviewed by the remuneration committee and is based on their involvement, experience, and market levels[133] - The Company has undergone changes in Board composition, including the appointment of new directors and re-designation of existing ones[138] - The Company is preparing for the forthcoming annual general meeting where certain directors will offer themselves for re-election[138] Shareholding Structure - As of March 31, 2021, Stephen Tai Tak Fung holds 90,739,177 shares, representing approximately 34.95% of the Company's total issued shares[143] - Careful Guide Limited owns 30,914,000 shares, accounting for approximately 11.91% of the Company's total issued shares[145] - Special Access Limited owns 52,907,250 shares, representing approximately 20.38% of the Company's total issued shares[145] - CGL holds 70,000,000 shares, representing approximately 18.22% of the total issued shares of FSMHL[151] Employee and Operational Insights - The total number of employees as of 31 March 2021 was 65, with salaries reviewed annually based on performance[102] - The Company has a diverse board with independent non-executive directors having extensive experience in various industries, including insurance and finance[190][191][192] - The Group's management team includes experienced professionals with backgrounds in public companies and multinational corporations[197]
香港食品投资(00060) - 2021 - 年度财报