Financial Performance - For the six months ended September 30, 2022, total revenue decreased by approximately 7.6% to approximately HK$606.1 million, primarily due to decreased sales performance in the management and sale of properties in agricultural produce exchange markets[15]. - The Group recorded a loss attributable to owners of the parent amounting to approximately HK$53.4 million, compared to a profit of approximately HK$14.1 million for the same period in 2021[16]. - The loss was mainly due to a decrease in fair value gains on investment properties, impairment losses on property, plant and equipment, and a decrease in revenue from property sales in agricultural produce exchange markets in the PRC[16]. - Revenue for the six months ended 30 September 2022 was HK$606,127,000, a decrease from HK$656,082,000 in the same period of 2021, representing a decline of approximately 7.6%[180]. - Gross profit for the same period was HK$268,189,000, down from HK$275,213,000, reflecting a decrease of about 2.4%[180]. - The Company reported a loss before tax of HK$19,023,000 for the six months ended 30 September 2022, compared to a profit of HK$54,289,000 in the prior year[180]. - The profit for the period was a loss of HK$35,643,000, contrasting with a profit of HK$35,320,000 in the same period of 2021[180]. - The company reported a total comprehensive loss attributable to owners of the parent of HK$239,983,000 for the six months ended September 30, 2022, compared to a comprehensive income of HK$81,851,000 in the same period of 2021[187]. - The profit attributable to owners of the parent was a loss of HK$53,385,000 for the six months ended September 30, 2022, compared to a profit of HK$14,109,000 in the same period of 2021[187]. Revenue Sources - The revenue of Chinese pharmaceutical and health food products business recorded a healthy growth of approximately 11.1% compared to the same period in 2021[22]. - The total revenue of Western pharmaceutical and personal care products business delivered a growth of approximately 80.6% over the corresponding period in 2021[24]. - The decline in revenue from property sales in the PRC was attributed to the performance of the Company's 53.37%-owned subsidiary, China Agri-Products Exchange Limited[16]. - CAP managed 11 agricultural produce exchange markets across five provinces in the PRC, generating revenue of approximately HK$303.6 million, down from approximately HK$393.6 million in the same period of 2021[31]. - Revenue from operating agricultural produce exchange markets was approximately HK$195.4 million, compared to approximately HK$203.0 million in the previous year[31]. - Revenue from the sale of properties was approximately HK$108.2 million, a decline from approximately HK$190.6 million in the same period of 2021[31]. Operational Developments - The Group has launched three Chinese specialists centers in Central, Causeway Bay, and Jordan to provide specialized solutions for patients with special medical needs[24]. - The Group plans to introduce nutritious soft meals for the elderly and an advanced disinfectant range under the brand name "Pearl's" in the coming year[24]. - The Group has been actively deploying resources to establish e-commerce channels, including distribution through its own online platform and selected third-party platforms[27]. - The Group expanded its property portfolio by subdividing a property in Mongkok, increasing owned properties from 13 to 14[29][33]. - The Group aims to improve the performance of the existing retail outlet portfolio to counteract the negative impact of the current uncertain business environment[24]. - The Group's efforts in strategic sales and marketing activities have contributed to its market leadership in the mosquito repellent product market in Hong Kong[24]. Financial Position - As of September 30, 2022, the Group's total assets were approximately HK$6,914.2 million, down from approximately HK$7,597.7 million as of March 31, 2022[43]. - The Group's total interest-bearing debts amounted to approximately HK$1,752.8 million as of September 30, 2022, an increase from approximately HK$1,681.2 million as of March 31, 2022[47]. - The current ratio was approximately 1.7 as of September 30, 2022, compared to approximately 1.5 as of March 31, 2022[50]. - The gearing ratio increased to approximately 51.1% as of September 30, 2022, up from approximately 45.3% as of March 31, 2022[50]. - The Group held financial assets at fair value through other comprehensive income of approximately HK$143.7 million and financial assets at fair value through profit or loss of approximately HK$46.0 million as of September 30, 2022[55]. - The Group's total non-current assets decreased to HK$4,315,163,000 as of September 30, 2022, from HK$4,709,007,000 as of March 31, 2022[190]. - Current assets totaled HK$2,599,038,000 as of September 30, 2022, down from HK$2,888,706,000 as of March 31, 2022[190]. - The company's cash and cash equivalents increased to HK$584,962,000 as of September 30, 2022, compared to HK$510,146,000 as of March 31, 2022[190]. Shareholder Information - The CAP Group owns approximately 73.54% of CAP's total issued share capital, amounting to 7,320,095,747 shares[124]. - Mr. Tang Ching Ho holds 67.26% of the company's total issued share capital, with 810,322,940 shares[117]. - The shareholding structure indicates that Mr. Tang and his associates have significant control over the Company through various subsidiaries[142]. - The Company has not granted any rights to acquire shares or debentures to its Directors or chief executives during the reporting period[137]. - The total number of shares held by major shareholders reflects a concentrated ownership structure, with Rich Time and its affiliates holding a substantial portion[139]. Corporate Governance - The company emphasizes maintaining a high standard of corporate governance with a focus on transparency, accountability, integrity, and independence[155]. - The board comprises three executive directors and four independent non-executive directors, ensuring a balance of skills and experience[154]. - The Company has established an Audit Committee to oversee financial reporting, internal controls, and risk management[177]. - The company does not propose to comply with code provision C.2.1 of the Corporate Governance Code for the time being but will continue to review such deviation[154]. Legal Matters - Since 2011, CAP Group has been involved in multiple civil proceedings in the PRC and Hong Kong regarding the Baisazhou Acquisition[82]. - The Hubei Court dismissed Ms. Wang and Tian Jiu's counterclaim for the return of CAP Group's 90% interest in Baisazhou Agricultural in December 2019[90]. - The Supreme People's Court upheld the Hubei Court's decision on 29 March 2021, confirming CAP Group's ownership of Baisazhou Agricultural[88]. - The former director of Baisazhou Agricultural was found guilty of misappropriating funds amounting to RMB 40.0 million and was sentenced to five years in prison[95]. Market Strategy - The Group plans to expand its market share by opening more retail outlets in the PRC, Hong Kong, and Macau, leveraging the development of the Guangdong-Hong Kong-Macau Greater Bay Area[106]. - The Group aims to launch more unique health supplements under the "Madame Pearl's" brand to meet market needs[107]. - The CAP Group will continue to build a nationwide agricultural produce exchange network, leveraging its leading industry position and advanced management systems[108]. - The Group's strategy includes enhancing cross-border e-commerce to reach consumers in the Greater Bay Area and the Asia Pacific Region[107]. - The CAP Group is pursuing an "asset light" strategy to expand operations in the PRC, focusing on partnerships and electronic platform development to leverage technology advancements promoted by the government[112].
位元堂(00897) - 2023 - 中期财报