Financial Performance - The Group recorded a turnover of approximately HK$322 million for the six months ended 30 September 2022, representing a decrease of approximately HK$90 million or 22% from HK$412 million for the corresponding period in 2021[14]. - The decline in turnover was attributed to lower property sales recognition and market operation turnover compared to the 2021 corresponding period[14]. - The Group recorded a gross profit of approximately HK$175 million, a decrease of approximately 23% compared to HK$228 million in the corresponding period of 2021[17]. - The segment result was approximately HK$116 million, representing a decrease of approximately 27% from HK$158 million in the same period last year[17]. - The profit for the period attributable to owners of the Company was approximately HK$8 million, down from approximately HK$18 million in the corresponding period of 2021[27]. - The Group's profit from operations before fair value change of investment properties was approximately HK$91 million, down from approximately HK$138 million in the previous year[27]. Expenses and Costs - General and administrative expenses increased to approximately HK$82 million, up from approximately HK$75 million in the previous year, mainly due to pandemic-related expenses[19]. - Selling expenses decreased to approximately HK$16 million from HK$23 million, attributed to reduced property sales recognition[19]. Dividends - The Board resolved not to declare any interim dividend for the six months ended 30 September 2022, consistent with the previous year where no dividend was declared[10][12]. Market Operations - Huangshi Market occupies approximately 23,000 square metres and has resumed full operation during the Period[38]. - Suizhou Market, covering around 240,000 square metres, showed satisfactory operating performance despite moderate impacts from the COVID-19 pandemic[40]. - Luoyang Market, the flagship project in Henan Province, has a site area of approximately 255,000 square metres and contributed positive cash flow to the Group as operations returned to normal[43]. - Yulin Market is one of the largest agricultural produce exchange markets in Guangxi Region, with a site area of approximately 415,000 square metres, and its performance was satisfactory during the Period[49]. - Xuzhou Market occupies approximately 200,000 square metres and serves as a major marketplace for fruit supply in northern Jiangsu Province, showing steady operating performance[51]. - Huai'an Market, covering about 100,000 square metres, has been operational since October 2015 and is expected to require more time for market growth[58]. - Panjin Market, with a construction area of around 50,000 square metres, focuses on river crab trading and is expected to maintain steady performance[59]. Investment Properties - The Group recorded a net gain in fair value of investment properties of approximately HK$25 million, compared to HK$4 million in the previous year[20]. - The stock of properties value impaired during the period was approximately HK$5 million, whereas there was no impairment in the same period last year[20]. - The fair value of the Group's investment properties was determined based on independent professional valuations, adhering to HKIS Valuation Standards 2020[92]. Financial Position - As of September 30, 2022, the Group had total cash and cash equivalents amounting to approximately HK$271 million, down from approximately HK$440 million as of March 31, 2022[75]. - Total assets were approximately HK$4,699 million as of September 30, 2022, compared to approximately HK$5,491 million as of March 31, 2022[75]. - The Group's gearing ratio increased to approximately 0.6 as of September 30, 2022, from approximately 0.4 as of March 31, 2022[75]. - The ratio of total interest-bearing debts to total assets was approximately 29% as of September 30, 2022, compared to approximately 27% as of March 31, 2022[75]. - Outstanding capital commitments amounted to approximately HK$213 million as of September 30, 2022, down from approximately HK$272 million as of March 31, 2022[78]. - The Group's total interest-bearing debts were approximately HK$1,375 million as of September 30, 2022, down from approximately HK$1,492 million as of March 31, 2022[87]. Legal Proceedings - The company faced legal proceedings initiated by Ms. Wang and Tian Jiu regarding the acquisition of 90% equity in Baisazhou Agricultural Products, claiming the transfer agreement was forged[106]. - The Hubei Court dismissed the claims from Ms. Wang and Tian Jiu, ordering them to bear the legal costs, but the decision was later overturned by the Supreme Court, which declared the agreement invalid[107]. - The Supreme Court recognized a sales agreement worth HKD 1,156,000,000 that must be executed by the company, Ms. Wang, and Tian Jiu[107]. - The Company continues to monitor ongoing legal proceedings related to the interests in Baisazhou Agricultural[120]. Employee and Remuneration - As of September 30, 2022, the Group employed 1,105 individuals, a slight decrease from 1,115 as of March 31, 2022, with approximately 98% located in the PRC[128]. - The Group's remuneration policy is reviewed periodically, with employee compensation adjusted annually based on market conditions, qualifications, experience, responsibilities, and performance[128]. - The Group has adopted a new share option scheme on August 26, 2022, aimed at rewarding eligible participants and enhancing the Company's value for shareholders[128]. Strategic Initiatives - The Company is actively studying various business opportunities to diversify income streams and deliver long-term benefits to shareholders[29]. - The Group is exploring opportunities to establish a new electronic trading platform to enhance the efficiency of the agricultural products market[60]. - The Group is pursuing an "asset light" strategy and exploring electronic platform development to capitalize on technology advancements in the PRC[134]. - The Group plans to build a nationwide agricultural produce exchange network leveraging its industry position and advanced management systems[131]. Risk Management - The Group has implemented policies to monitor and assess potential cyber risks, ensuring the security of its operations[61]. - Environmental risks due to severe climate change may adversely impact agricultural production and the Group's turnover in market operations and property sales[71]. - The Group faces risks including fluctuations in the Renminbi exchange rate, difficulty in obtaining financing, and challenges in maintaining competitive positioning in the agri-products exchange market[100]. Shareholder Information - As of September 30, 2022, Mr. Tang held 7,320,095,747 shares, representing approximately 73.54% of the Company's total issued shares[156]. - The Company confirmed compliance with the required standards set out in the Model Code for the entire reporting period[148]. - The 2022 Scheme will remain in force for 10 years, until August 25, 2032[190].
中国农产品交易(00149) - 2023 - 中期财报