Financial Performance - The Group's revenue for the Reporting Period was approximately HK$281.5 million, an increase of approximately HK$198.5 million or 239.2% from approximately HK$83.0 million for the Corresponding Period[40]. - Gross profit during the Reporting Period was approximately HK$27.4 million, representing an increase of approximately HK$13.3 million or 94.3%, with a gross profit margin of 9.7% compared to 16.9% for the Corresponding Period[40]. - The net profit for the Reporting Period was approximately HK$8.8 million, compared to a net loss of approximately HK$2.3 million for the Corresponding Period, attributed to increased revenue and the reversal of impairment loss on loan receivables[40]. - The total comprehensive income attributable to owners of the company for the period was HK$17,072,000, compared to a loss of HK$10,071,000 in the previous year[94]. - The Group's profit attributable to the owners of the Company for the Reporting Period was approximately HK$11,109,000, compared to a loss of HK$2,302,000 in the Corresponding Period[158]. Business Segments - The Agricultural and Meat Business segment's turnover increased by approximately 267.7%, from approximately HK$71.9 million in the Corresponding Period to approximately HK$264.4 million during the Reporting Period[9]. - The gross profit for the Agricultural and Meat Business segment rose to approximately HK$11.5 million, compared to HK$3.7 million in the Corresponding Period[9]. - The Group's Money Lending Business and Securities Brokerage Business also contributed to overall performance, although specific figures were not detailed in the report[8]. - The Securities Brokerage Business generated revenue of approximately HK$5.5 million, a significant increase from HK$0.8 million in the previous year[33]. - The Agricultural and Meat Business reported revenue of HK$264,393,000, while the Money Lending Business and Securities Brokerage Business reported revenues of HK$11,600,000 and HK$5,493,000 respectively[116]. Cost and Expenses - Selling and distribution expenses increased by approximately HK$5.6 million or 560% to approximately HK$6.6 million due to increased staff salaries and distribution costs related to supplying food produce to supermarkets in the PRC[40]. - Administrative expenses rose by approximately HK$6.9 million or 38.5% to approximately HK$24.8 million, primarily due to increased staff salaries and compliance fees for the Securities Brokerage Business[40]. - Total staff costs for the Reporting Period amounted to HK$12.4 million, an increase from HK$8.4 million in the corresponding period[79]. - The cost of inventories recognized as an expense was HK$245,921,000, up from HK$68,220,000, indicating a growth of 261%[148]. Assets and Liabilities - As of June 30, 2021, the Group had bank balances and cash of approximately HK$100.6 million, an increase from HK$64.6 million as of 31 December 2020, mainly due to an increase in clients' money for the Securities Brokerage Business[43]. - Total borrowings as of June 30, 2021 amounted to approximately HK$255.8 million, a decrease from HK$272.0 million as of 31 December 2020, with borrowings of approximately HK$239.6 million repayable within one year[44]. - The Group's total liabilities as of June 30, 2021, were HK$765,900, reflecting a comprehensive view of its financial obligations[126]. - Current liabilities increased to HK$711,731,000, compared to HK$485,542,000 at the end of 2020, reflecting a rise of 46.5%[96]. - The Group's total trade and other receivables reached HK$563,565,000 as of June 30, 2021, compared to HK$353,740,000 as of December 31, 2020[197]. Investments and Acquisitions - The acquisition of Shenzhen Cypress Jade Cross-border E-commerce Co. Ltd is expected to diversify the company's revenue streams by enhancing online sales of agricultural and meat products[83]. - The company aims to diversify its revenue streams through strategic acquisitions in the e-commerce sector, particularly in Shenzhen, China[186]. - The acquisition strategy is part of the company's broader market expansion efforts in the online sales and agricultural trading sectors[185]. - The company acquired 55% of Tuoke E-commerce on December 2, 2020, for a nominal cash consideration of approximately HK$1, enhancing its market share in agricultural trading in Shenzhen[184]. Research and Development - The Group is conducting research and development on the cultivation of Kimura et Migo, which requires approximately three to five years to reach maturity before harvesting[10]. - The Group aims to evaluate cultivation costs and market demand for new products before making further investment decisions[10]. - The cultivation of Kimura et Migo is still in the experimental stage, with no plans for mass cultivation until growth patterns and economic viability are fully understood[10]. Economic Environment - The overall economic recovery in China post-pandemic has positively influenced the Group's Agricultural and Meat Business[9]. - The performance of the Money Lending Business segment is projected to worsen due to the uncertain economic environment and policy in the PRC[27][29]. Financial Management - The Group will continue to adopt a positive yet prudent approach in managing its financial resources and is well-positioned to obtain financing on favorable terms if needed[46]. - The Group regularly reviews its capital structure, monitoring the net debt to adjusted equity ratio[52]. - The Group's strategy to optimize its debt and equity balance remains unchanged from the prior year[51]. Regulatory and Compliance - The Group has adopted all new and revised HKFRSs effective from January 1, 2021, which did not have a material effect on the financial statements[112]. - The Group did not provide for Hong Kong profits tax as there were no assessable profits during the reporting period[151]. - The applicable tax rate for the Group's Hong Kong subsidiaries remained at 16.5% during the reporting period[149].
中国金控(00875) - 2021 - 中期财报