Revenue and Profitability - Revenue for the Review Period increased by approximately 98.7% to approximately HK$44.5 million, compared to approximately HK$22.4 million for the same period last year[17]. - Profit attributable to owners of the Company was approximately HK$1.6 million, a turnaround from a loss of approximately HK$2.7 million in the same period last year[17]. - Revenue increased by approximately HK$22.1 million or 98.7% from approximately HK$22.4 million for the six months ended 31 October 2023 to approximately HK$44.5 million for the Review Period[28]. - Revenue from the manufacture and sales of compound fertilisers increased by approximately HK$35.0 million from approximately HK$0.7 million for the six months ended 31 October 2023 to approximately HK$35.7 million for the Review Period[28]. - The Group recorded a profit before tax of approximately HK$2.1 million for the Review Period, compared to a loss before tax of approximately HK$1.4 million for the six months ended 31 October 2023[38]. - Total comprehensive income for the period was HK$2,188,000, compared to a comprehensive loss of HK$4,996,000 in the prior year[98]. - For the six months ended 31 October 2024, the profit attributable to owners of the Company was HK$1,648,000, compared to a loss of HK$2,674,000 for the same period in 2023[173]. Cost Management - The Group adopted measures to control operating costs, including staff cost reductions, to navigate the challenging economic environment[11]. - Cost of sales increased by approximately HK$31.8 million from approximately HK$1.7 million for the six months ended 31 October 2023 to approximately HK$33.5 million for the Review Period[29]. - Overall gross profit decreased by approximately HK$9.7 million or 46.9% from approximately HK$20.7 million for the six months ended 31 October 2023 to approximately HK$11.0 million for the Review Period[30]. - Selling and distribution costs decreased by approximately HK$5.9 million or 54.6% from approximately HK$10.8 million for the six months ended 31 October 2023 to approximately HK$4.9 million for the Review Period[35]. - Administrative expenses decreased by approximately HK$8.0 million or 66.1% from approximately HK$12.1 million for the six months ended 31 October 2023 to approximately HK$4.1 million for the Review Period[36]. - Total staff costs decreased to HK$4,951,000 in 2024 from HK$12,033,000 in 2023, representing a reduction of approximately 58.8%[163]. Market Performance - The export volume of urea dropped sharply by about 92.8% compared to the same period last year, severely affecting the Group's export business performance[12]. - The overall domestic fertiliser market showed a slight weakness due to falling raw material prices and insufficient domestic market demand[12]. - The Group's trading business faced challenges due to a slowdown in demand growth and a sharp decline in trading volume[11]. - The Group implemented marketing strategies to promote domestic sales in response to the decline in export volume[12]. - Revenue from Mainland China surged to HK$43,714,000, up 104.4% from HK$21,426,000 in the previous year, while revenue from Hong Kong decreased to HK$752,000 from HK$931,000[149]. Corporate Governance - The Company has complied with all provisions of the Corporate Governance Code, except for provisions C.2.1 and F.2.2, with Mr. Liu serving as both Chairman and CEO since September 7, 2017[71]. - The Audit Committee consists of three members, all of whom are Independent Non-Executive Directors (INEDs), ensuring compliance with Rule 3.21 of the Listing Rules[74]. - The Company plans to schedule future AGMs earlier to avoid timetable clashes, ensuring effective communication with shareholders[72]. - The Company is in the process of identifying suitable candidates to comply with the Corporate Governance Code regarding the separation of the roles of Chairman and CEO[71]. - The Company has established a register to record substantial shareholders' interests as required under section 336 of the SFO[79]. Financial Position - As of 31 October 2024, the Group's total cash and cash equivalents were approximately HK$65.1 million, a slight decrease from approximately HK$65.8 million as of 30 April 2024[40]. - The Group maintained a current ratio of approximately 1.1 times as of 31 October 2024 and 30 April 2024, indicating stable liquidity[40]. - The Group had no bank borrowings as of 31 October 2024 and 30 April 2024, indicating a strong financial position[46]. - The Company did not declare any interim dividend for the review period, consistent with the previous period[62]. - The income tax expense for the six months ended 31 October 2024 was HK$414,000, down from HK$1,266,000 in 2023, reflecting a decrease of approximately 67.3%[167]. - Total liabilities decreased to HK$125,632,000 from HK$157,719,000, indicating improved financial stability[103]. Operational Challenges - Cash generated from operations was HK$672,000, a significant decline from HK$51,259,000 in the previous year, highlighting operational challenges[108]. - Commission income decreased to HK$8,059,000, down 61.0% from HK$20,712,000 in the previous year[129]. - The wholesale business of watches generated revenue of HK$743,000, a decline of 19.5% compared to HK$922,000 in the prior period[129]. - The net foreign exchange gain for the period was HK$39,000, a decrease from HK$586,000 in the previous year[156]. Inventory and Receivables - The gross carrying amount of inventories as of 31 October 2024 was HK$12,426,000, down from HK$13,789,000 as of 30 April 2024[179]. - Trade receivables as of October 31, 2024, were HK$112,000, significantly reduced from HK$545,000 as of April 30, 2024, indicating a decline of about 79.5%[182]. - The allowance for write-down of inventories recognized was HK$76,000 for the current period, compared to HK$581,000 in the previous year[153]. - The entire balance of contract liabilities as of October 31, 2024, is expected to be derecognized within twelve months upon delivery of products to customers[193].
富一国际控股(01470) - 2025 - 中期财报