中国万天控股(01854) - 2021 - 中期财报

Financial Statements Unaudited Condensed Consolidated Statement of Comprehensive Income The Group achieved a profit of HKD 0.16 million for the six months ended September 30, 2020, reversing a prior-year loss despite a 35.8% revenue decline, primarily due to increased other income and cost control Summary of Consolidated Income Statement | Indicator | For the Six Months Ended September 30 (Unaudited) | Year-on-Year Change | | :--- | :--- | :--- | | | 2020 | 2019 | | Revenue | HKD 54.2 million | -35.8% | | | HKD 84.37 million | | | Gross Profit | HKD 8.1 million | -30.8% | | | HKD 11.72 million | | | Operating Profit / (Loss) | HKD 1.17 million | Turned to Profit | | | (HKD 0.79 million) | | | Profit / (Loss) for the Period | HKD 0.16 million | Turned to Profit | | | (HKD 1.24 million) | | | Basic Earnings / (Loss) Per Share | 0.01 HK cents | Turned to Profit | | | (0.10 HK cents) | | Unaudited Condensed Consolidated Balance Sheet As of September 30, 2020, the Group's total assets slightly decreased to HKD 157.96 million, while total liabilities reduced and equity marginally increased, indicating a stable financial position Summary of Consolidated Balance Sheet | Indicator | September 30, 2020 (HKD thousand) | March 31, 2020 (HKD thousand) | | :--- | :--- | :--- | | Total Assets | 157,962 | 160,503 | | Non-current Assets | 80,712 | 83,105 | | Current Assets | 77,250 | 77,398 | | Total Liabilities | 56,286 | 58,988 | | Total Equity | 101,676 | 101,515 | Unaudited Condensed Consolidated Statement of Cash Flows For the six months ended September 30, 2020, net cash from operating activities significantly increased to HKD 6.52 million, improving liquidity with period-end cash at HKD 36.67 million Summary of Cash Flow Statement | Indicator (HKD thousand) | For the Six Months Ended September 30 (Unaudited) | | | :--- | :--- | :--- | | | 2020 | 2019 | | Net Cash Generated from Operating Activities | 6,523 | 1,717 | | Net Cash Used in Investing Activities | (92) | (2,164) | | Net Cash Used in Financing Activities | (2,520) | (891) | | Cash and Cash Equivalents at End of Period | 36,670 | 23,364 | Notes to the Unaudited Condensed Consolidated Financial Statements 1. Corporate Information and Basis of Preparation The Group's core business is sourcing and supplying food ingredients in Hong Kong, with financial statements prepared under HKFRS, and new standards having no significant impact - The Group's core business involves sourcing, processing, and supplying food ingredients in Hong Kong[8] - The Company's shares were transferred from GEM to the Main Board of the Stock Exchange on March 21, 2019[8] - New and revised accounting standards adopted during the period had no significant financial impact on the condensed consolidated financial statements[10] 5. Segment Information The Group operates solely in the food ingredient supply segment in Hong Kong, with revenue from goods and services declining 35.8% year-on-year, supplemented by HKD 2.68 million in government subsidies Revenue and Other Income | Item (HKD thousand) | For the Six Months Ended September 30 (Unaudited) | | | :--- | :--- | :--- | | | 2020 | 2019 | | Sales of Goods and Services | 54,195 | 84,374 | | Government Subsidies | 2,682 | – | - No major customer information is presented as no single customer's revenue accounted for 10% or more of the total[17] 11. Dividends The Board does not recommend an interim dividend for the six months ended September 30, 2020, consistent with the previous period - The Board does not recommend the payment of an interim dividend for the six months ended September 30, 2020[26] Management Discussion and Analysis Business and Financial Review The Group's revenue declined 35.8% to HKD 54.2 million due to COVID-19's impact on Hong Kong's catering industry, but government subsidies enabled a net profit of approximately HKD 0.2 million - The Group transitioned from a net loss to a net profit, primarily due to government subsidies from the Hong Kong government related to the COVID-19 outbreak, partially offsetting the decline in revenue and gross profit[43] Summary of Financial Performance | Indicator | For the Six Months Ended September 30 | | | :--- | :--- | :--- | | | 2020 | 2019 | | Revenue | Approx. HKD 54.2 million | Approx. HKD 84.4 million | | Net Profit / (Net Loss) | Approx. HKD 0.2 million | Approx. (HKD 1.2 million) | Performance Analysis Cost of sales decreased 36.6%, aligning with revenue, while gross profit declined 30.8% to HKD 8.1 million, yet gross margin improved to 14.9% due to cost management and reduced administrative expenses - Gross profit margin increased from 13.9% to 14.9% year-on-year, primarily due to cost management measures and reallocation of operational staff resources[47] - Selling and administrative expenses decreased by 24.8%, partly due to professional fees incurred in the prior period related to the transfer of listing[49] - Other income significantly increased, primarily due to the receipt of government subsidies related to the COVID-19 outbreak[48] Use of Net Proceeds from Listing As of September 30, 2020, approximately HKD 47.2 million of the HKD 47.8 million net listing proceeds were utilized, with the remaining HKD 0.6 million allocated for logistics and sales channel improvements Use of Net Proceeds from Listing (HKD million) | Planned Use | Planned Amount | Actual Use | Unutilized Amount | | :--- | :--- | :--- | :--- | | Acquisition of new processing base, facilities, and equipment | 23.7 | 23.7 | – | | Further enhancement of human resources | 9.1 | 9.1 | – | | Expansion of logistics team | 9.7 | 9.4 | 0.3 | | Improvement of sales channels | 0.5 | 0.2 | 0.3 | | General working capital | 4.8 | 4.8 | – | | Total | 47.8 | 47.2 | 0.6 | Liquidity and Financial Resources The Group maintains a robust financial position, with bank balances and cash of HKD 36.7 million and total borrowings of HKD 46.0 million as of September 30, 2020, while the gearing ratio slightly decreased to 45.4% Liquidity Ratios | Indicator | September 30, 2020 | March 31, 2020 | | :--- | :--- | :--- | | Bank Balances and Cash | Approx. HKD 36.7 million | Approx. HKD 32.8 million | | Total Borrowings | Approx. HKD 46.0 million | Approx. HKD 48.5 million | | Gearing Ratio | Approx. 45.4% | Approx. 47.8% | Other Information Interests and Short Positions of Directors and Chief Executive As of September 30, 2020, Chairman Mr. Liu Chi Ching, through Classic Line, beneficially owned 57.14% of the Company's shares, making him the controlling shareholder, with his spouse also deemed to hold the same interest Directors' Shareholding | Director's Name | Capacity / Nature of Interest | Number of Relevant Shares | Approximate Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Liu Chi Ching | Interest in controlled corporation | 720,000,000 | 57.14% | | Ms. Wu Shuk Kwan | Spouse's interest | 720,000,000 | 57.14% | Corporate Governance Practices The Company maintains high corporate governance standards, complying with the Listing Rules' Corporate Governance Code, and the Audit Committee has reviewed the interim financial statements for compliance and disclosure - The Company has complied with the principles and code provisions of the Corporate Governance Code during the reporting period[75] - The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited condensed consolidated financial statements for the six months ended September 30, 2020[76]