Revenue and Profitability - The group's revenue from the procurement and sale of dried cassava chips was approximately HKD 840.9 million, a decrease of about 60.0% compared to HKD 2,102.4 million in the same period last year[6]. - The group's revenue for the six months ended September 30, 2023, was HKD 856,279,000, a decrease of 59.5% compared to HKD 2,111,557,000 in the same period of 2022[64]. - Gross profit decreased from approximately HKD 237.4 million to about HKD 66.9 million, a reduction of approximately HKD 170.5 million, primarily due to decreased sales and changes in customer contract terms[7]. - Gross profit for the same period was HKD 80,880,000, down 67.2% from HKD 246,201,000 year-on-year[64]. - The group reported a profit of approximately HKD 16.4 million for the period, compared to HKD 34.1 million in the previous year[41]. - The group reported a profit attributable to owners of the company of HKD 16,406,000, a decline of 52.1% from HKD 34,069,000 in the previous year[64]. - Basic and diluted earnings per share were HKD 2.8, compared to HKD 5.8 for the same period last year, reflecting a 51.7% decrease[64]. - The company reported a profit of HKD 11,750,000 for the six months ended September 30, 2023, a decrease of 61.1% compared to HKD 30,241,000 in the same period last year[91]. - Total comprehensive income for the period amounted to HKD 1,010,000, down from HKD 18,187,000 year-on-year[91]. Costs and Expenses - Gross profit margin for the procurement and sale of dried cassava chips was approximately 8%, down from 11.3% in 2022, mainly due to the change in customer contract terms from CIF to FOB[21]. - The group's procurement and sales cost for dried cassava chips was approximately HKD 774 million, a decrease of about 58.5% from HKD 1,865 million in the same period last year[20]. - The group's sales and distribution costs were approximately HKD 26.8 million, significantly reduced from HKD 161.8 million in the previous year[21]. - The group's administrative expenses for the period were approximately HKD 25.4 million, slightly down from HKD 25.8 million in the same period last year[40]. - Financing expenses increased from approximately HKD 9 million to about HKD 15.2 million, primarily due to an increase in the average bank loan interest rate[23]. Assets and Liabilities - As of September 30, 2023, the group's current assets were approximately HKD 399.8 million, a decrease from HKD 933.5 million as of March 31, 2023[42]. - As of September 30, 2023, the group's current liabilities amounted to approximately HKD 119.2 million, a significant decrease from HKD 679.3 million as of March 31, 2023[24]. - The group's capital gearing ratio as of September 30, 2023, was 28.4%, down from 47.1% as of March 31, 2023, primarily due to a reduction in trade-related bank borrowings[43]. - Total liabilities decreased to HKD 695,464,000 from HKD 699,886,000, indicating stable financial leverage[67]. - Non-current assets totaled HKD 1,078,408,000, a decrease from HKD 1,108,269,000 as of March 31, 2023[66]. - Current assets decreased significantly to HKD 399,796,000 from HKD 933,510,000 as of March 31, 2023, primarily due to a reduction in inventory and receivables[66]. Market Outlook and Strategy - The group anticipates that demand for dried cassava will increase as the economy in mainland China shows significant growth in the coming months[18]. - The group plans to expand its procurement network for dried cassava chips in Thailand, Vietnam, Laos, and Cambodia to meet the anticipated increase in demand and enhance market share[49]. - The group remains committed to optimizing employee allocation to improve profitability despite challenges in the market[19]. - The group is focusing on cost control while investing in marketing to attract local residents as hotel customers, aiming to improve revenue and profitability[50]. - The group is considering management contracts with several small to medium-sized hotels in the area to expand hotel management income[50]. - The group continues to explore the feasibility of trading in other bulk commodities and potential investment projects, including the hotel and real estate sectors[31]. Employee and Operational Metrics - The total number of employees was approximately 250, with total employee costs around HKD 13.1 million during the period[12]. - The inventory turnover as of September 30, 2023, was approximately 48.2 days, down from 65.4 days as of March 31, 2023, representing a reduction of about 17.2 days[25]. - The group operates eleven procurement facilities for dried cassava chips across Thailand, Cambodia, Laos, and Vietnam, with a total storage capacity of approximately 600,000 tons[49]. Corporate Governance and Compliance - The company maintained compliance with the corporate governance code, except for a deviation noted in A.2.1[87]. - The company has adopted a code of conduct regarding securities transactions by directors, which is not less stringent than the requirements of the Stock Exchange[86]. - The major shareholder holds a direct beneficial ownership of 23.18% of the issued share capital[82]. - The company did not declare an interim dividend for the six months ended September 30, 2023[53]. - The company did not purchase, redeem, or sell any of its listed securities during the reporting period[85]. Foreign Exchange and Valuation - The company experienced a foreign exchange loss of HKD 323,000, compared to a loss of HKD 645,000 in the previous year[91]. - The fair value loss on property valuation was HKD 10,358,000, which increased from HKD 9,259,000 year-on-year[91]. - The company reported a tax impact of HKD 1,709,000 related to property valuation losses[91]. - The company has no significant capital commitments or contingent liabilities as of September 30, 2023[27][28].
木薯资源(00841) - 2024 - 中期财报