Financial Performance - The Group recorded a turnover of approximately HK$412 million for the six months ended 30 September 2021, representing an increase of approximately HK$120 million or 41% from HK$292 million for the same period in 2020[13]. - Gross profit for the Period was approximately HK$228 million, an increase of approximately 51% compared to HK$151 million for the six months ended 30 September 2020[17]. - The segment result was approximately HK$158 million, reflecting a 70% increase from approximately HK$93 million in the previous year[17]. - The gross profit margin to turnover improved to 55% for the Period, compared to 52% for the same period in 2020[14]. - The profit attributable to owners of the Company for the Period was approximately HK$18 million, compared to a loss of approximately HK$23 million in the corresponding period of 2020[27]. - The Group recorded a profit from operations before fair value change of investment properties and impairment of approximately HK$138 million, up from approximately HK$67 million in the same period last year, representing a 106% increase[27]. - Profit for the period was HK$33,954,000, a significant recovery from a loss of HK$18,592,000 in the same period last year[178]. - Total comprehensive income for the period attributable to owners of the company was HK$75,998,000, down from HK$93,687,000 in the previous year[181]. - Earnings per share (basic and diluted) for the period was HK$0.18, compared to a loss per share of HK$0.23 in the same period last year[181]. Expenses and Costs - General and administrative expenses decreased to approximately HK$75 million from HK$79 million in the previous year, due to cost-saving measures[18]. - Selling expenses increased to approximately HK$23 million from HK$15 million, attributed to higher property sales recognition[18]. - Finance costs decreased to approximately HK$66 million from HK$82 million, primarily due to the repayment of interest-bearing debts[18]. - General and administrative expenses were approximately HK$75 million, down from approximately HK$79 million in the previous period, due to cost control measures[22]. - Sales expenses increased to approximately HK$23 million from approximately HK$15 million, attributed to increased confirmed property sales[22]. Market Operations - The reduction of COVID-19 transmission contributed to the restoration of sales and market operations to normal levels during the Period[17]. - The operating performance of Luoyang Market returned to normal as the COVID-19 pandemic was gradually brought under control, contributing positive cash flow to the Group[37]. - The performance of Huangshi Market resumed to full operation during the Period, enhancing trading synergy with Wuhan Baisazhou Market[31]. - Yulin Market, one of the largest agricultural produce exchange markets in Guangxi Region, performed satisfactorily during the Period, with property sales as the major income source[40]. - Suizhou Market's operating performance was satisfactory despite moderate impacts from the COVID-19 pandemic[36]. - Puyang Market, a joint venture project in Henan Province, has shown satisfactory operational performance during the period[43]. - Kaifeng Market, with a total building area of approximately 120,000 square meters, is gradually improving its performance as part of the agricultural market network in Henan Province[44]. - Yulin Market in Guangxi, covering approximately 415,000 square meters with a total building area of about 196,000 square meters, has performed well, generating significant revenue from property sales[45]. - Qinzhou Market, with a gross floor area of approximately 180,000 square meters, has shown satisfactory performance as the second operational point in Guangxi[48]. - Xuzhou Market occupies approximately 200,000 square meters and serves as a major marketplace for fruit supply in northern Jiangsu Province, maintaining steady operational performance[49]. - Huai'an Market, covering about 100,000 square meters, is expected to improve gradually as it matures, despite ongoing legal disputes with a joint venture partner[52]. - Panjin Market, the Group's first investment in Liaoning Province, has a construction area of around 50,000 square meters and is expected to maintain steady performance focusing on river crab trading[53]. Financial Position - As of 30 September 2021, the Group's total cash and cash equivalents amounted to approximately HK$442 million, an increase from approximately HK$425 million as of 31 March 2021[65]. - Total assets were approximately HK$5,652 million, up from approximately HK$5,584 million as of 31 March 2021, while net assets increased to approximately HK$2,295 million from approximately HK$2,206 million[65]. - The Group's gearing ratio as of 30 September 2021 was approximately 0.5, compared to 0.4 as of 31 March 2021, with total borrowings of approximately HK$1,548 million[65]. - The ratio of total interest-bearing debts to total assets was approximately 27% as of 30 September 2021, up from approximately 25% as of 31 March 2021[65]. - As of 30 September 2021, outstanding capital commitments amounted to approximately HK$267 million, an increase from approximately HK$241 million as of 31 March 2021[72]. - The Group had no contingent liabilities related to guarantees provided by wholly-owned subsidiaries as of 30 September 2021, compared to approximately HK$27,000 as of 31 March 2021[72]. - The Group's total interest-bearing debts as of 30 September 2021 were approximately HK$1,548 million, an increase from approximately HK$1,371 million as of 31 March 2021[78]. - The overall financial position shows a strengthening of equity and a significant reduction in liabilities, indicating improved financial health for the Company[186]. Legal Matters - The Company was involved in legal proceedings initiated by Ms. Wang and Tian Jiu regarding the alleged forgery of share transfer agreements related to the acquisition of a 90% interest in Baisazhou Agricultural[95]. - The Hubei Court dismissed the claims of Ms. Wang and Tian Jiu in June 2014, ordering them to bear the legal costs of the proceedings[96]. - The Supreme Court of the PRC revoked the Hubei Court Judgment on January 13, 2015, declaring the Contended Agreements void and recognizing a sale and purchase agreement valued at HK$1,156 million as the actual agreement[96]. - In May 2015, Ms. Wang and Tian Jiu filed legal proceedings against the Ministry of Commerce (MOFCOM) for failing to handle their application to revoke the approval related to the Contended Agreements[101]. - The Beijing Court ordered MOFCOM to reconsider the Application within 30 days on January 8, 2016[101]. - MOFCOM confirmed on May 19, 2016, that its approval from November 2007 regarding the Contended Agreements would not be revoked, citing potential serious damage to public interest[102]. - The Beijing Court dismissed the application by Ms. Wang and Tian Jiu to revoke MOFCOM's Decision on April 18, 2017, stating it lacked legal and factual basis[104]. - Ms. Wang and Tian Jiu filed an appeal against the Beijing Court's judgment on May 10, 2017, seeking to set aside the judgment and revoke MOFCOM's approval[105]. - The Company was awarded damages totaling RMB 510,000,001 from Ms. Wang and Tian Jiu due to their breach of the SPA regarding the acquisition of Baisazhou Agricultural[115]. - The Supreme Court dismissed the appeal of Ms. Wang and Tian Jiu, upholding the 23 December Judgment, which confirms the Company's ownership of Baisazhou Agricultural[112]. - The Company continues to be the legal owner of Baisazhou Agricultural according to the judgments issued by the Supreme Court[113]. Employee Information - The Company has 1,125 employees as of 30 September 2021, a decrease from 1,151 employees on 31 March 2021[119]. - Approximately 98% of the Group's employees are located in the PRC[119]. Corporate Governance - The Company has maintained high standards of corporate governance, ensuring transparency and accountability throughout the reporting period[130]. - The Group's management system and information technology infrastructure are well-advanced, supporting its nationwide agricultural produce exchange network[123]. - The Group has limited resources allocated to e-commerce development, focusing on cost control while exploring partnerships in this area[54]. - The Group has implemented policies to mitigate cyber risks and data fraud, ensuring that access to data is restricted to authorized personnel only[61]. Shareholding Structure - Mr. Tang holds 7,450,095,747 shares, representing approximately 74.85% of the total issued shares of the company[142]. - Easy One has an interest in 2,137,700,062 shares, accounting for 21.47% of the total issued shares[156]. - Goal Success is a beneficial owner of 5,312,395,685 shares, which is 53.37% of the total issued shares[156]. - Biomore Investments, Total Smart, and WYT each have an interest in 5,312,395,685 shares, representing 53.37% of the total issued shares[156]. - The company disclosed that 810,322,940 shares of WYT were held by Rich Time, and 11,400,000,000 shares of WOP were held by Earnest Spot Limited[151]. - The total number of shares involved in Mr. Tang's interests in associated corporations is 7,780,645,772 shares, which is approximately 46.71%[148]. - The company has a significant concentration of ownership, with major shareholders controlling over 50% of the total shares[156]. Future Outlook - The Group is expanding operations in China through an "asset light" strategy, confident that this approach will yield long-term benefits for the Company and its shareholders[126]. - The "Belt and Road Initiative" is expected to drive overall growth in the PRC economy, providing sustainable development opportunities[125]. - The PRC central government's agricultural development remains a top priority, with the 2021 "No. 1 Central Document" promoting investments in agricultural produce markets and logistics infrastructure[125].
中国农产品交易(00149) - 2022 - 中期财报