Financial Performance - The turnover for the Review Period decreased by approximately 16.1% to approximately HK$22.4 million, compared to approximately HK$26.7 million for the same period in 2022[17]. - Gross profit for the Review Period was approximately HK$20.7 million, down from approximately HK$22.8 million in the previous year[17]. - Loss attributable to owners of the Company was approximately HK$2.7 million for the Review Period, compared to a profit of approximately HK$3.6 million for the same period in 2022[17]. - Revenue decreased by approximately HK$4.3 million or 16.1% from approximately HK$26.7 million to approximately HK$22.4 million for the Review Period[27]. - Revenue from the watches business decreased by approximately HK$5.2 million or 85.2% from approximately HK$6.1 million to approximately HK$0.9 million due to the closure of all retail shops since November 2022[27]. - Gross profit decreased by approximately HK$2.1 million or 9.2% from approximately HK$22.8 million to approximately HK$20.7 million, primarily due to the decline in revenue from the watches business[29]. - The Group recorded a loss before tax of approximately HK$1.4 million for the Review Period, compared to a profit before tax of approximately HK$7.0 million for the same period last year[36]. - For the six months ended October 31, 2023, total revenue was HK$22,357,000, a decrease of 16.4% compared to HK$26,670,000 for the same period in 2022[108]. - Gross profit for the same period was HK$20,698,000, down from HK$22,845,000, reflecting a decline of 9.4%[108]. - Loss before tax for the period was HK$1,408,000, compared to a profit of HK$7,001,000 in the previous year[108]. - Loss attributable to owners of the Company was HK$2,674,000, a significant decrease from a profit of HK$3,641,000 in the prior period[108]. - Total comprehensive expense for the period attributable to owners was HK$4,996,000, compared to HK$378,000 in the previous year[108]. - Basic and diluted loss per share was HK$0.33, compared to earnings of HK$0.46 per share in the same period last year[108]. Operational Developments - The Group entered into a lease agreement for a production line of compound fertiliser with an annual production capacity of 30,000 tonnes, starting from October 5, 2023[16]. - The new business of manufacturing and selling compound fertilisers recorded profits and is expected to provide growth opportunities for the Group[16]. - Fertiliser prices are expected to remain high during the peak season for domestic agricultural demand, but may fluctuate due to raw material prices and international market demand changes[21]. - The export volume of urea is expected to show a downward trend in the short term, impacting the export business[21]. - The Group aims to enhance shareholder value through vertical integration and may consider purchasing the leased production line or establishing its own in the future[22]. Cost and Expense Management - Selling and distribution costs increased by approximately HK$3.1 million or 40.3% from approximately HK$7.7 million to approximately HK$10.8 million, mainly due to increased freight costs[30]. - Administrative expenses increased by approximately HK$3.4 million or 39.1% from approximately HK$8.7 million to approximately HK$12.1 million, primarily due to higher directors' remuneration and administrative staff salaries[35]. - The company incurred finance costs of HK$20,000 for the six months ended 31 October 2023, a decrease from HK$85,000 in 2022[162]. Financial Position - As of 31 October 2023, the Group's total cash and cash equivalents were approximately HK$170.0 million, an increase from approximately HK$126.2 million as of 30 April 2023[38]. - The current ratio decreased from approximately 1.1 times as of 30 April 2023 to approximately 1.0 time as of 31 October 2023[38]. - Total assets increased to HK$296,996,000 as of 31 October 2023, up from HK$201,597,000 as of 30 April 2023, representing a growth of 47.2%[111]. - Current assets rose to HK$294,200,000, a significant increase of 46.1% from HK$201,261,000 in the previous period[113]. - Cash and cash equivalents at the end of the period reached HK$169,963,000, compared to HK$126,190,000 at the beginning of the period, marking an increase of 34.7%[118]. - Total equity decreased to HK$11,857,000 as of 31 October 2023, down from HK$16,853,000, a decline of 29.5%[113]. - The company reported a net cash from operating activities of HK$49,674,000 for the six months ended 31 October 2023, compared to HK$51,978,000 in the same period last year, a decrease of 4.5%[118]. Governance and Compliance - The Board resolved not to declare any interim dividend for the review period, consistent with the previous year[59][64]. - The Company has complied with all provisions of the Corporate Governance Code, except for code provisions C.2.1 and F.2.2 regarding the roles of the chairman and CEO, and attendance at the annual general meeting[67][68][69]. - Following the resignation of an independent non-executive director on November 16, 2023, the Company currently has only two independent non-executive directors, which does not meet the Listing Rules requirements[72]. - The Audit Committee currently comprises two members, both of whom are independent non-executive directors[73]. - The company is actively ensuring compliance with corporate governance standards as outlined in the Securities and Futures Ordinance[87]. Shareholder Information - As of October 31, 2023, Mr. Meng holds 600,000,000 shares, representing a 75% interest in the company[79]. - Prosper One, the immediate holding company, also holds 600,000,000 shares, accounting for 75% of the company's equity[89]. - The total number of shares issued as of October 31, 2023, is 800,000,000[81]. - Mr. Meng is the sole shareholder and director of Prosper One, which manages the shares under the Changjiang Absolute Return China Fund[81]. - No other persons or entities, apart from the disclosed interests, have any significant shareholdings as of October 31, 2023[91]. Employee and Staffing - The total number of employees increased to 62 as of October 31, 2023, compared to 51 as of October 31, 2022, with total remuneration costs of approximately HK$12.0 million for the review period, up from approximately HK$9.3 million for the same period last year[56][62]. - Total staff costs increased to HK$12,033,000, up 29.1% from HK$9,318,000 in the previous year[165].
富一国际控股(01470) - 2024 - 中期财报