Revenue and Profitability - During the Reporting Period, revenue from the Agricultural and Meat Business increased by approximately 227.7%, from approximately HK$329.3 million to approximately HK$1,079.2 million[17]. - The Group recorded a gross profit of approximately HK$20.6 million, compared to HK$12.7 million in the Corresponding Period[17]. - The Group's revenue for the Reporting Period was approximately HK$1,079.2 million, an increase of approximately HK$749.9 million or 227.7% from approximately HK$329.3 million for the Corresponding Period[32]. - Gross profit during the Reporting Period was approximately HK$20.6 million, representing an increase of approximately HK$7.9 million or 62.0% compared to approximately HK$12.7 million for the Corresponding Period[33]. - The net profit for the Reporting Period was approximately HK$30.1 million, compared to a net profit of approximately HK$13.2 million for the Corresponding Period[43]. - The profit attributable to owners of the company was HK$30,290, compared to HK$13,475 in the same period of 2022, reflecting a substantial increase of approximately 125%[89]. - Profit before taxation for the period was HK$30,323, a turnaround from a loss of HK$6,634 in the previous year[87]. Expenses and Financial Management - Selling and distribution expenses increased by approximately HK$0.6 million or 24.3% to approximately HK$3.0 million during the Reporting Period[35]. - Administrative and other expenses rose by approximately HK$3.2 million or 30.5% to approximately HK$13.9 million during the Reporting Period[36]. - The Group recorded a net reversal of impairment losses on trade receivables of approximately HK$35.9 million during the Reporting Period, compared to impairment losses of approximately HK$2.8 million for the Corresponding Period[37]. - Other income and gains amounted to approximately HK$7.9 million, an increase of approximately HK$2.1 million or 36.0% from approximately HK$5.8 million for the Corresponding Period[34]. - The Group's finance costs for the six months ended June 30, 2023, totaled HK$8,661,000, compared to HK$5,199,000 in the same period of 2022, indicating an increase in borrowing costs[129]. Financial Position and Liquidity - As of 30 June 2023, the Group had bank balances and cash of approximately HK$40.9 million, down from HK$73.8 million as of 31 December 2022[46]. - Total borrowings as of 30 June 2023 were approximately HK$424.6 million, an increase from HK$266.5 million as of 31 December 2022[51]. - The current ratio as of June 30, 2023, was approximately 0.89, down from 1.04 as of December 31, 2022[57]. - The net debt to adjusted equity ratio increased to 0.44 as of June 30, 2023, from 0.29 as of December 31, 2022[65]. - The gearing ratio as of June 30, 2023, was 0.87, up from 0.56 as of December 31, 2022, primarily due to an increase in bank loans[65]. - Cash and cash equivalents, including pledged bank deposits, were approximately HK$40.9 million as of June 30, 2023, down from HK$73.8 million as of December 31, 2022[57]. - The Group plans to continue managing its financial resources prudently and believes it can secure financing on favorable terms if needed[52]. Business Strategy and Operations - The Group plans to continue controlling costs and utilizing existing resources while collaborating with research institutes in the PRC to enhance agricultural produce cultivation and trading[18]. - The Group aims to pursue acquisitions when opportunities arise to further strengthen its business[18]. - The Group's strategy includes enhancing revenue streams through diversified product offerings and market expansion[18]. - The Group is actively developing its trading of agricultural and meat produce, poultry, seafood, and prepared food, and has commenced supplying products to supermarkets and online platforms in the PRC[74]. - The Group has established stable and long-term cooperation with various farms and agricultural companies, aiming to build a food supply base in the Guangdong-Hong Kong-Macau Greater Bay Area to ensure food safety for 120 million people[75]. - The Group is exploring different cooperation models with e-commerce operators to enhance online sales of its agricultural and meat products, thus diversifying its revenue streams[76]. - During the Reporting Period, the Group joined the "Ten Thousand Stores Alliance" to establish a comprehensive industry chain service platform, targeting thousands of households in the Greater Bay Area[80]. Taxation and Compliance - No provision for Hong Kong profits tax was made as the subsidiaries did not have any assessable profit during the Reporting Period, consistent with the corresponding period[133]. - The Enterprise Income Tax (EIT) provision for the PRC subsidiaries was HK$180,000 for the Reporting Period, a significant increase from HK$38,000 in the previous period, reflecting a rise of 368.42%[137]. - The applicable tax rate for the Group's Hong Kong subsidiaries remained at 16.5% during the Reporting Period, unchanged from the previous year[136]. - The Group's PRC subsidiaries engaged in qualifying agricultural business were entitled to a full exemption from EIT, benefiting from tax incentives[139]. Employee and Operational Metrics - As of June 30, 2023, the Group had 59 full-time employees, with total staff costs amounting to HK$5.2 million, a slight increase from HK$5.1 million in the corresponding period[70]. - Staff costs, including directors' emoluments, amounted to HK$4,894,000 for the six months ended June 30, 2023, slightly up from HK$4,803,000 in 2022[130]. Investments and Acquisitions - The Group had no significant investments or material acquisitions during the reporting period[65]. - The acquisition of Cypress Jade Cross-border E-commerce was completed on June 19, 2020, for a cash consideration of approximately HK$237,000, diversifying the Group's revenue stream[174]. - The acquisition of 55% interest in Tuoke E-commerce was completed on December 2, 2020, for a nominal cash consideration of HK$1, enhancing the Group's market share in agricultural trading in Shenzhen[174].
中国金控(00875) - 2023 - 中期财报