Financial Performance - The turnover for the Review Period increased by approximately 7.2% to approximately HK$40.1 million, compared to approximately HK$37.4 million for the six months ended 31 October 2020[23]. - Gross profit for the Review Period was approximately HK$21.8 million, up from approximately HK$17.8 million for the same period in 2020[23]. - Loss attributable to owners of the Company was approximately HK$3.2 million for the Review Period, an increase of approximately HK$2.5 million compared to a net loss of approximately HK$0.7 million for the six months ended 31 October 2020[23]. - Revenue increased by approximately HK$2.7 million or 7.2% from approximately HK$37.4 million to approximately HK$40.1 million for the Review Period[35]. - Revenue from trading business rose by approximately HK$2.1 million or 18.1% from approximately HK$11.6 million to approximately HK$13.7 million[35]. - Revenue from watches business increased by approximately HK$0.6 million or 2.3% from approximately HK$25.8 million to approximately HK$26.4 million[35]. - Gross profit increased by approximately HK$4.0 million or 22.5% from approximately HK$17.8 million to approximately HK$21.8 million[37]. - Gross profit from the watches business rose by approximately HK$1.9 million or 30.6% from approximately HK$6.2 million to approximately HK$8.1 million[37]. - The Group recorded a loss before tax of approximately HK$2.0 million for the Review Period, compared to a profit before tax of approximately HK$0.7 million for the previous period[46]. - For the six months ended October 31, 2021, the company reported a loss of HK$3,176,000, compared to a loss of HK$693,000 for the same period in 2020, indicating a significant increase in losses[138]. Cost Management - The Group has implemented cost-saving measures, including job cuts and closure of underperforming shops, to build a lean operating cost structure[23]. - Selling and distribution expenses increased by approximately HK$3.5 million or 28.5% from approximately HK$12.3 million to approximately HK$15.8 million[43]. - Administrative expenses decreased by approximately HK$0.1 million or 1.1% to about HK$8.6 million for the review period[49]. - Financing costs decreased by approximately HK$0.39 million or 52.0% to about HK$0.36 million, mainly due to a reduction in financing costs related to lease liabilities[50]. - The repayment of principal portion of lease liabilities amounted to HK$4,204,000, a decrease from HK$12,085,000 in the previous year, indicating a reduction of approximately 65.2%[138]. Market and Operational Insights - The Group's trading business maintained growth momentum during the Review Period, supported by rising prices of raw materials and expanding market demand[17]. - The overall situation of the fertiliser industry remains steady, with tight supply and demand expected to continue due to market demand and elimination of backward capacity[24]. - The Group plans to further expand operations into new markets and strengthen marketing efforts to diversify its customer base[24]. - Revenue from the watches retail business slightly increased despite a decrease in the number of retail shops during the Review Period[16]. - The Group actively closed more underperforming shops upon expiry of rental agreements to optimize its retail network[16]. Shareholder and Governance Information - The board has resolved not to declare any interim dividend for the review period, consistent with the previous period[82]. - Mr. Meng Guangyin serves as both the Chairman and CEO, which deviates from the Corporate Governance Code provision A.2.1, but the board believes this is in the best interest of the group[85]. - The company has established an Audit Committee comprising three independent non-executive directors[90]. - The company has complied with all provisions of the Corporate Governance Code, except for the aforementioned deviations[85]. Employee and Remuneration Details - The Group had a total of 73 employees as of 31 October 2021, with total remuneration costs of approximately HK$10.8 million for the review period[76]. - The group employed a total of 73 employees as of October 31, 2021, down from 90 employees as of October 31, 2020[80]. - Total salary costs incurred by the group during the review period were approximately HKD 10.8 million, compared to HKD 11.2 million for the six months ended October 31, 2020[80]. Financial Position and Ratios - As of 31 October 2021, the Group's total cash and cash equivalents were approximately HK$6.1 million, down from approximately HK$13.4 million as of 30 April 2021[54]. - The current ratio was maintained at approximately 1.1 times as of 31 October 2021 and 30 April 2021[54]. - The gearing ratio increased to 135.4% as of 31 October 2021, compared to 83.1% as of 30 April 2021[54]. - Total bank borrowings were approximately HK$10.3 million as of 31 October 2021, slightly up from approximately HK$10.2 million as of 30 April 2021[55]. - Total assets as of October 31, 2021, were HK$179,198,000, a decrease from HK$185,802,000 as of April 30, 2021[130]. - Total equity decreased to HK$26,079,000 as of October 31, 2021, from HK$28,724,000 as of April 30, 2021[133]. - Current liabilities amounted to HK$152,235,000 as of October 31, 2021, down from HK$155,108,000 as of April 30, 2021[133]. Segment Performance - The retail segment generated revenue of HK$25,497,000, while the wholesale segment contributed HK$1,046,000, and the trading segment accounted for HK$13,656,000[164]. - The group reported a segment profit of HK$2,375,000, compared to a profit of HK$5,697,000 in the previous year, indicating a decline of approximately 58%[164][167]. - The external sales in the retail segment increased from HK$22,521,000 in 2020 to HK$25,432,000 in 2021, reflecting a growth of about 8.5%[167][164]. - The trading segment showed a significant increase in external commission income, rising from HK$11,589,000 in 2020 to HK$13,656,000 in 2021, marking an increase of approximately 17.9%[167][164]. Cash Flow and Investments - Cash flows from operating activities resulted in a net cash outflow of HK$6,940,000 for the six months ended 31 October 2021, compared to a net cash inflow of HK$180,000 in the previous year[138]. - The company did not generate any cash from investing activities during the six months ended 31 October 2021, compared to a net cash inflow of HK$2,564,000 in the same period of 2020[138]. - Government grants received amounted to HK$822,000, down from HK$2,570,000 in the same period last year[179].
富一国际控股(01470) - 2022 - 中期财报