Financial Performance - The turnover for the Review Period decreased by approximately 33.4% to approximately HK$26.7 million compared to HK$40.1 million in the same period last year[18]. - Gross profit for the Review Period was approximately HK$22.8 million, slightly up from approximately HK$21.8 million in the previous year[18]. - Profit attributable to owners of the Company was approximately HK$3.6 million for the Review Period, a turnaround from a loss of approximately HK$3.2 million in the same period last year[18]. - Revenue decreased by approximately HK$13.4 million or 33.4% from approximately HK$40.1 million to approximately HK$26.7 million for the Review Period[27]. - Revenue from the trading business increased by approximately HK$6.9 million or 50.4% from approximately HK$13.7 million to approximately HK$20.6 million[27]. - Revenue from the watches business decreased by approximately HK$20.3 million or 76.9% from approximately HK$26.4 million to approximately HK$6.1 million[27]. - Profit before tax recorded at approximately HK$7.0 million for the Review Period, compared to a loss before tax of approximately HK$2.0 million for the same period last year[38]. - Total comprehensive expense attributable to owners of the Company for the period was HK$378,000, compared to HK$2,645,000 in the previous year[109]. - The company reported a profit for the period of HK$3,641,000, compared to a loss of HK$3,176,000 in the same period last year[117]. - Basic and diluted earnings per share for the period were HK$0.46, compared to a loss of HK$0.40 per share in the previous year[109]. Operational Changes - The Group closed two underperforming retail shops during the Review Period, reducing the total number of retail shops to 1 as of 31 October 2022[12]. - The Group plans to focus on developing its wholesale business and may resume retail operations when the pandemic impact eases[20]. - The Group implemented cost-saving measures, including job cuts and stringent cost control, in response to the challenging business environment[18]. - The total remuneration costs incurred by the Group for the review period were approximately HK$9.3 million, down from approximately HK$11.2 million for the six months ended October 31, 2021[62]. - The Group had a total of 54 employees as of October 31, 2022, a decrease from 73 employees as of October 31, 2021[62]. Market Conditions - The trading business maintained growth momentum, benefiting from rising international fertiliser prices due to increased market demand and tight global energy supply[13]. - Fertiliser prices are expected to remain high in the short term due to strict domestic environmental protection requirements and the ongoing Russia-Ukraine war[19]. - The Group aims to leverage its marketing network to capitalize on rising international fertiliser prices and accelerate expansion into overseas markets[19]. Financial Position - Total cash and cash equivalents as of 31 October 2022 were approximately HK$132.3 million, up from approximately HK$82.5 million as of 30 April 2022[40]. - Current ratio decreased from approximately 1.2 times to approximately 1.1 times as of 31 October 2022[40]. - The Group had no bank borrowings as of October 31, 2022, compared to HK$4.0 million as of April 30, 2022[47]. - As of October 31, 2022, total assets increased to HK$196,879,000, up from HK$163,860,000 as of April 30, 2022, representing a growth of approximately 20.1%[112]. - Total liabilities increased to HK$175,685,000 from HK$142,288,000, representing a rise of approximately 23.5%[114]. - The company’s share capital remained stable at HK$8,000,000 as of both reporting dates[114]. Shareholder Information - The Board resolved not to declare any interim dividend for the review period, consistent with the previous year[65]. - As of October 31, 2022, Mr. Meng holds 600,000,000 shares, representing a 75% interest in the company[81]. - The total number of shares issued as of October 31, 2022, is 800,000,000[87]. - The company is committed to effective communication with shareholders, as demonstrated by the attendance of committee chairs and an independent auditor at the AGM[75]. Compliance and Governance - The Audit Committee consists of three independent non-executive directors, ensuring compliance with corporate governance standards[79]. - The Company confirmed compliance with the Model Code for securities transactions by all Directors during the Review Period[96]. - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards and have not been audited[129][132]. Inventory and Receivables Management - Trade receivables decreased to HK$61,436,000 from HK$71,957,000, reflecting a decline of about 14.6%[114]. - The gross carrying amount of inventories as of 31 October 2022 was HK$12,718,000, down from HK$17,854,000 as of 30 April 2022, reflecting a reduction in stock levels[190]. - The allowance for write-down of inventories decreased from HK$12,504,000 as of 30 April 2022 to HK$9,943,000 as of 31 October 2022, suggesting improved inventory management[190]. - Trade receivables that were past due but not impaired amounted to HK$180,000, down from HK$302,000 as of 30 April 2022, indicating improved credit management[187].
富一国际控股(01470) - 2023 - 中期财报