Financial Performance - Revenue for the six months ended December 31, 2023, was HKD 4,241.6 million, a decrease of 1.0% compared to HKD 4,244.7 million in the same period last year[2]. - Gross profit for the same period was HKD 19.5 million, representing an increase of 16.2% from HKD 16.7 million year-on-year[2]. - The operating loss for the period was HKD 42.7 million, a reduction of 21.4% compared to a loss of HKD 54.2 million in the previous year[3]. - The basic loss per share for the period was HKD 0.408, improved from HKD 0.518 in the same period last year[2]. - Total comprehensive loss for the period was HKD 41.9 million, compared to HKD 62.5 million in the same period last year[3]. - Other income for the period was HKD 5.4 million, down from HKD 6.2 million year-on-year[2]. - Administrative expenses decreased to HKD 29.9 million from HKD 32.2 million, reflecting a 10.2% reduction[2]. - The company reported a fair value loss of HKD 12.1 million due to biological transformation, an improvement from HKD 15.1 million in the previous year[2]. Assets and Liabilities - Total assets as of December 31, 2023, amounted to HKD 1,023,129,000, a decrease from HKD 1,073,509,000 in June 30, 2023, representing a decline of approximately 4.7%[5]. - Total liabilities increased to HKD 94,916,000 from HKD 103,439,000, indicating a reduction of about 8.5%[7]. - Total equity decreased to HKD 928,213,000 from HKD 970,070,000, reflecting a decline of approximately 4.3%[7]. - Current assets totaled HKD 612,182,000, up from HKD 591,778,000, showing an increase of about 3.1%[5]. - Cash and cash equivalents decreased to HKD 87,078,000 from HKD 121,830,000, a decline of approximately 28.5%[5]. - Inventory increased to HKD 108,601,000 from HKD 105,317,000, representing a growth of about 2.2%[5]. - Accounts receivable rose to HKD 230,078,000 from HKD 202,298,000, indicating an increase of approximately 13.7%[5]. Cash Flow and Expenses - The operating cash flow for the six months ending December 31, 2023, was a net outflow of HKD 35,449,000, compared to a net outflow of HKD 14,424,000 for the same period in 2022, indicating a significant increase in cash burn[10]. - The cash flow from investing activities showed a net inflow of HKD 7,456,000, a decrease from HKD 46,106,000 in the previous year, reflecting reduced investment returns[10]. - The cash flow from financing activities resulted in a net outflow of HKD 5,583,000, compared to a net outflow of HKD 3,625,000 in the prior period, indicating increased financing costs[10]. - The company reported a significant increase in operating expenses, with a total of HKD 35,412,000 for the current period, compared to HKD 14,324,000 previously, reflecting higher operational costs[10]. Market and Strategic Focus - The company is focusing on expanding its market presence and enhancing product offerings in response to changing consumer demands[2]. - Future outlook indicates a cautious approach due to market volatility, with a commitment to cost control and operational efficiency[3]. - The group continues to develop domestic product trading and upstream farming businesses to counter the challenges faced by imported products[54]. - The group is focusing on developing domestic fresh agricultural product trading to mitigate the negative impacts of import product trading[62]. - The group has established an agricultural science industrial park to promote the development of its upstream farming business[68]. Segment Performance - Revenue from consumer goods sales was HKD 147,395,000, down from HKD 152,754,000 year-over-year, indicating a decrease of about 3.4%[19]. - Revenue from agricultural products sales increased to HKD 92,664,000 from HKD 90,028,000, reflecting a growth of approximately 2.9%[19]. - The company reported a loss from the fast-moving consumer goods trade business of HKD 6,532,000 for the period[25]. - The total loss across all categories was HKD 37,431,000, with the agricultural products business contributing a loss of HKD 28,957,000[25]. Governance and Management - The company has adhered to the Corporate Governance Code as per the Hong Kong Stock Exchange regulations, with a noted deviation from rule C.2.1[98]. - The company’s chairman and CEO roles are held by the same individual, Lin Guo Xing, who has over 30 years of experience in the consumer goods industry[99]. - The board believes that having a single individual in both roles can benefit the company and its shareholders by effectively balancing power distribution[100]. Future Plans and Investments - The company plans to utilize HKD 207.3 million in the next six months for various projects, including HKD 80 million for financial resources and future expansion[84]. - Upgrading Shanghai cold storage and logistics facilities is budgeted at HKD 12 million, expected to be completed by December 31, 2021[84]. - A total of HKD 14 million is allocated for renovations and equipment upgrades at the Jiangxi fruit processing center, to be completed by June 30, 2022[84]. - The establishment of a new processing agricultural product center in Dongguan is budgeted at HKD 34 million, with a completion target of December 31, 2022[84].
亨泰(00197) - 2024 - 中期业绩