中国农产品交易(00149) - 2021 - 年度财报

Corporate Information This section provides key company details, including board composition, essential operational information, and listing specifics Board Composition and Committees The company's board comprises executive, non-executive, and independent non-executive directors, supported by audit, remuneration, nomination, and executive committees to ensure sound and effective corporate governance - Board members include Executive Directors Mr. Leung Shui Wah (Chief Executive Officer) and Mr. Yau Yuk Shing, Non-executive Director Mr. Tang Ching Ho (Chairman), and Independent Non-executive Directors Mr. Ng Yat Cheung, Mr. Lau King Lung, and Mr. Wong Ping Yuen[4][5][10] - The company has an Audit Committee, Remuneration Committee, Nomination Committee, and Executive Committee, each with clear membership and responsibilities[4][5][6] Key Company Information This section lists the company's principal bankers, legal advisors, auditors, registered office, head office, and principal place of business in Hong Kong - Principal bankers include Bank of Communications Co., Ltd. Hong Kong Branch and The Hongkong and Shanghai Banking Corporation Limited[8][10] - Legal advisors are Linklaters for Hong Kong law and King & Wood Mallesons for PRC law[10] - The auditor is BDO Limited[13] Listing Information The company's shares and notes are listed on The Stock Exchange of Hong Kong Limited, with stock codes 0149 and 5755 respectively - The company's shares are listed on The Stock Exchange of Hong Kong Limited, stock code 0149[15] - The company's 1% notes due 2024 are also listed on The Stock Exchange of Hong Kong Limited, stock code 5755[15] - The company's website is http://www.cnagri-products.com[16](index=16&type=chunk) Chairman's Statement This statement provides an overview of the group's financial performance, business environment, strategic developments, and social responsibilities Financial Performance Overview For the year ended March 31, 2021, the group's turnover was approximately HKD 651 million, a decrease of approximately HKD 440 million compared to the previous fiscal year (15 months), primarily due to accounting period adjustments and reduced property sales Turnover Comparison | Metric | For the 12 months ended March 31, 2021 (HKD) | For the 15 months ended March 31, 2020 (HKD) | | :--- | :--- | :--- | | Turnover | 651,000,000 | 1,091,000,000 | | Change | Decrease of approximately 440,000,000 | - | - The decrease in turnover was mainly due to reduced recognized property sales and the previous fiscal year including an additional three months of reporting data[17][18] Business Environment and Market Layout The group maintained stable business development amidst the pandemic, benefiting from its livelihood project nature and cost control measures, while the Chinese government's continuous support for agricultural product wholesale markets and logistics provided a favorable policy environment - The group's business development remained stable amidst the COVID-19 outbreak due to its nature as a livelihood project and effective cost control measures[21][22] - The group has successfully established a nationwide chain of wholesale market systems and a modern agricultural and sideline product logistics center network, managing 11 agricultural product trading markets across Hubei, Henan, Guangxi, Jiangsu, and Liaoning provinces[19][20] - The Chinese government continues to focus on "agriculture, rural areas, and farmers" development through its No. 1 Central Document, strongly supporting agricultural product wholesale markets and the agricultural product logistics industry, while also issuing policies to regulate the industry and raise entry barriers[23][24][26][28] Business Development and Digital Transformation The group actively promotes the digitalization of its agricultural wholesale business, fully implementing electronic transaction settlement and modern leasing management systems to meet post-pandemic digital demands and strengthen market risk prevention and cost control - The group has fully introduced electronic transaction settlement and modern leasing management systems across all agricultural product trading markets, advancing the digitalization of its agricultural wholesale business[34][35] - Electronic payment usage has increased, all paper-based lease contracts have been converted to electronic contracts, allowing operators to pay fees and sign online, effectively reducing costs and monitoring operational status[34][35] - During the pandemic, the group implemented strict hygiene and epidemic prevention measures, strengthened monitoring of imported cold chain food, and integrated resources to enhance cost control for improved operational efficiency[36][37] Corporate Strategy and Future Outlook The group will integrate online and offline agricultural product trading platforms, apply modern technology to manage "five flows" (vehicle, human, logistics, information, capital), upgrade to a new generation of agricultural product supply chain logistics centers, and plans to shift its profit model from fixed rent to transaction commissions for sustainable growth - The group will integrate offline physical agricultural product trading markets and build an online agricultural product trading big data cloud platform, applying modern technology to manage the "five flows": vehicle flow, human flow, logistics flow, information flow, and capital flow[39][42] - In the long term, the profit model will shift from traditional fixed site rental to primarily collecting transaction commissions, aiming for more flexible and effective market scaling and sustained profit growth[40][42] - The future strategy will uphold the philosophy of "strengthening agriculture with integrity, benefiting farmers with trust," using digitalization as a core means to ensure food safety, guided by smart agricultural wholesale upgrades, to deliver reasonable returns to shareholders[41][43] Social Responsibility The group is committed to sustainable business development, actively participates in Hong Kong charity events, donates essential goods to anti-epidemic frontlines and affected areas in mainland China, and strictly adheres to environmental laws and regulations while promoting environmental awareness - The group participated in Hong Kong Community Chest's "Charity Dental Day" and "Green Day" to raise funds for vulnerable groups and promote environmental awareness[49][50] - In mainland China, the group repeatedly donated essential goods such as vegetables, cooking oil, and rice to government units, hospital anti-epidemic personnel, schools, and residents, supporting epidemic prevention and poverty alleviation[49][50] - The group strictly complies with Chinese environmental laws and regulations in the construction and operation of agricultural product trading markets, and actively promotes environmental awareness among employees and suppliers[49][50] Management Discussion and Analysis This section provides a detailed analysis of the group's financial performance, operational review, business development, risk management, liquidity, and legal matters Summary of Financial Results For the year ended March 31, 2021, the group recorded a turnover of approximately HKD 651 million, a decrease of about 40% from the previous fiscal year (15 months), with gross profit and segment results also declining; however, a positive legal ruling for the Wuhan market resulted in a HKD 661 million gain on litigation judgment, significantly increasing profit attributable to owners to approximately HKD 490 million Turnover, Gross Profit and Segment Result For the year ended March 31, 2021, the group's turnover was HKD 651 million, a 40% year-on-year decrease, with gross profit and segment results also falling by 35% and 32% respectively, primarily due to reduced property sales and reporting period adjustments Key Financial Metrics Comparison (as of March 31) | Metric | 2021 (12 months) (million HKD) | 2020 (15 months) (million HKD) | Change Rate | | :--- | :--- | :--- | :--- | | Turnover | 651 | 1,091 | -40% | | Gross Profit | 352 | 539 | -35% | | Segment Result | 230 | 337 | -32% | - The decrease in turnover, gross profit, and segment results was mainly due to reduced recognized property sales and the previous fiscal year including an additional three months of reporting data[60][58] [Other Revenue and Other Net Income](index=15