Financial Performance - The Group recorded a turnover of approximately HK$562.3 million, an increase of approximately 71.1% from HK$328.7 million in the previous year[10]. - Gross profit for the Group was approximately HK$75.6 million, compared to HK$45.1 million in the previous year[10]. - During the Reporting Period, the Group's turnover was approximately HK$562.3 million, representing an increase of approximately 71.1% from HK$328.7 million in the Corresponding Period[50]. - Gross profit increased to approximately HK$75.6 million, up by approximately 67.6% from about HK$45.1 million in the Corresponding Period[50]. - The net profit for the Group was approximately HK$30.6 million, a turnaround from a net loss of approximately HK$68.1 million in the corresponding period[62]. Revenue Sources - Revenue growth was driven by increased sales in the agricultural and meat business and the securities brokerage business[10]. - The Agricultural and Meat Business segment recorded a turnover increase of approximately 73.0%, rising from approximately HK$302.0 million to approximately HK$522.6 million during the Reporting Period[28]. - Securities Brokerage Business revenue increased to approximately HK$15.6 million from HK$6.1 million in the previous year, while loss before taxation was approximately HK$4.4 million[42]. - Money Lending Business generated loan interest income and gross profit of approximately HK$24.0 million, an increase from HK$20.6 million in the previous year[50]. Business Agreements and Expansion - The Group entered into a service agreement with Meituan Select, which covers over 90% of cities and counties in the PRC, to sell agricultural and meat products[11]. - A procurement agreement was established with the Government Offices Administration of Conghua District, Guangzhou City, for the supply of grain, oil, and agricultural products starting in Q1 2022[12]. - The Group entered into a Procurement Agreement with ten buyers to supply agricultural, seafood, and meat products starting from Q2 2022, which will be sold on the Meituan Grocery platform[17]. - The Group has leased approximately 67 hectares of farmland in Shanwei, Guangdong Province, to expand its agricultural and meat business[19]. - The Group acquired 100% interest in Shenzhen Cypress Jade Cross-border E-commerce Co. Ltd to enhance online sales of its agricultural, seafood, and meat products[112]. Financial Management - The average interest rate charged to borrowers in the Money Lending Business was 11.96% during the Reporting Period, up from 11.3% in the previous year[35]. - Outstanding loan principal and interest receivables amounted to approximately HK$333.3 million, compared to HK$272.6 million in the previous year[50]. - Total borrowings amounted to approximately HK$310.9 million, an increase from HK$272.0 million in the previous year, with approximately HK$169.6 million secured by bank deposits[71]. - The Group's bank balances and cash at the end of the reporting period were approximately HK$142.8 million, compared to HK$64.6 million in the previous year[70]. Cost Management - Selling and distribution expenses increased by approximately HK$9.7 million or 350.8% to approximately HK$12.5 million, primarily due to increased staff salaries and distribution costs related to supplying food products to supermarkets in China[58]. - Administrative expenses rose by approximately HK$12.1 million or 34.3% to approximately HK$47.2 million, mainly due to increased professional fees in the Securities Brokerage Business[59]. - Total staff costs for the Reporting Period amounted to HK$23.2 million, a significant decrease from HK$50.8 million in 2020, reflecting cost management efforts[97]. Corporate Governance - The Company emphasizes good corporate governance standards focusing on integrity, transparency, and independence[132]. - The Company has complied with the Code Provisions and mandatory disclosure requirements of the old Corporate Governance Code during the Reporting Period[133]. - The Company has adopted a code of conduct for Directors' securities transactions that meets the standards of the Model Code[135]. - The Company periodically reviews its corporate governance practices to ensure compliance with the CG Code[134]. - The Board is responsible for maintaining an effective internal control system to safeguard shareholders' investments and the Company's assets[142]. Risk Management - The Audit Committee reviews the risk management and internal control systems on an ongoing basis to ensure their adequacy and effectiveness[144]. - The Group has established risk management procedures to address significant risks associated with its business, with annual reviews conducted by the Board[146]. - The internal control systems are designed to provide reasonable assurance against material misstatements in financial statements[151]. Strategic Development - The Group plans to pursue diversification of its business and income streams by exploring new investment opportunities with growth potential[20]. - The Group is actively developing its seafood and meat trading business and began supplying food products to supermarkets in the PRC during the Reporting Period[104]. - The Group is exploring vertical integration opportunities, including door-to-door delivery services for its products in the PRC[113]. - The Group is considering other potential profitable businesses to boost profitability in the future, including financial and agricultural segments in the PRC and Hong Kong[115]. Management Changes - Mr. Lin was appointed as the CEO of the Company on October 15, 2021, after being re-designated from a non-executive Director[117]. - Ms. Han was appointed as the financial controller of the Group and a non-executive Director on October 15, 2021[120].
中国金控(00875) - 2021 - 年度财报