2021-06-30-港交所-Ｆ８企业_2021年报_195页_5mb

F8 Enterprises (Holdings) Group Limited 2021 Annual Report Summary

Core Content

F8 Enterprises (Holdings) Group Limited is a listed company on the Hong Kong Stock Exchange's GEM (The Growth Enterprise Market), with a stock code of 8347. The report covers the financial performance and business activities of the Group for the year ended 31 March 2021.

Main Points

1. Company Information

• Registered Office: Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1-1111, Cayman Islands.
• Hong Kong Headquarters: Unit 3304, 33/F, Tower 1, Enterprise Square Five, 38 Wang Chiu Road, Kowloon Bay, Kowloon, Hong Kong.
• Key Officers:
  • Chairman: Mr. Fong Chun Man
  • Vice Chairlady: Ms. Lo Pui Yee
  • Chief Executive Officer: Mr. Chan Chi Fai
  • Independent Non-Executive Directors: Mr. Chui Chi Yun, Mr. Kwong Yuk Lap, Mr. Wang Anyuan
  • Audit Committee: Mr. Chui Chi Yun, Mr. Kwong Yuk Lap, Mr. Wang Anyuan
  • Remuneration Committee: Mr. Wang Anyuan, Mr. Chui Chi Yun, Mr. Fong Chun Man
  • Nomination Committee: Mr. Kwong Yuk Lap, Mr. Chui Chi Yun, Mr. Fong Chun Man
  • Authorised Representatives: Mr. Fong Chun Man, Ms. Lo Pui Yee
  • Compliance Officer: Mr. Fong Chun Man
  • Company Secretary: Ms. Leung Yin Fai (HKICPA, ACCA, CPA Australia)

2. Financial Performance

• Total Revenue: HK$438.2 million (2021), a decrease of HK$1.1 million or 0.3% from HK$439.3 million (2020).
• Net Profit: HK$5.5 million (2021), up by HK$1.0 million or 22.2% from HK$4.5 million (2020).
• Net Profit Margin: Increased from 1.0% to 1.2%.
• Gross Profit: Increased by HK$4.3 million to HK$28.1 million (2021), with a gross margin of 6.4%.
• Fair Value Change on Contingent Consideration Receivable: Recognised HK$1.2 million for the year, which affected the net profit.

3. Business Operations

• The Group primarily engages in the sale and transportation of diesel oil and related products, as well as the sale of steel products and marine diesel oil.
• Acquired 51% equity interest in Meijia Shell (Global) Lubricant Technology Limited in 2020, which contributed significantly to the revenue increase in 2021.
• Maintained a fleet of 9 diesel tank wagons and one marine oil barge.
• Expanded fleet capacity and replaced two old tank wagons with three new ones to meet customer demand and reduce environmental impact.

4. Financial Highlights

• Current Assets: HK$154.7 million (2021) vs HK$118.7 million (2020)
• Current Liabilities: HK$82.0 million (2021) vs HK$36.8 million (2020)
• Current Ratio: 1.9 (2021) vs 3.2 (2020)
• Bank Borrowings: Total debt of HK$65.0 million (2021), with 21.3 million HKD utilised.
• Gearing Ratio: 23.4% (2021) vs 23.6% (2020)
• Capital Structure: Equity attributable to owners of HK$116.5 million (2021) vs HK$91.8 million (2020)
• Share Capital: Only comprises of ordinary shares.

5. Risk Management

• Foreign Currency Exposure: The Group is exposed to foreign exchange risks due to transactions in RMB and financial assets in Malaysian Ringgit, but did not use any derivatives or financial instruments to hedge these risks.
• Liquidity and Capital Resources: Maintained a healthy liquidity position through operating cash flow and bank borrowings. No material capital commitments or contingent liabilities, except for asset pledges.

6. Dividends and Asset Pledges

• Dividends: No dividend recommendation for the year ended 31 March 2021.
• Asset Pledges: Approximately HK$12.2 million in short-term bank deposits, HK$4.8 million in life insurance policies, and HK$1.0 million in motor vehicles were pledged to secure banking facilities.

7. Strategic Outlook

• The Group expects continued focus on improving operational efficiency and profitability.
• Anticipates increased demand for diesel oil in Hong Kong, driven by infrastructure projects and logistics recovery.
• Plans to enhance talent recruitment and marketing strategies in the diesel oil sector.
• Actively seeks new business opportunities to increase income sources and shareholder value.

Key Information

• Acquisition of Meijia Shell (Global) Lubricant Technology Limited: Completed on 21 April 2020, with 78 million consideration shares issued at HK$0.21 each.
• Total Shares Outstanding: 878 million after the acquisition.
• Share Price: HK$0.01 par value, with a listing date on 12 April 2017.
• Financial Statements: Prepared in compliance with GEM Listing Rules, with directors taking full responsibility.
• Legal and Audit: Legal advisor is D. S. Cheung & Co., and auditors are HLB Hodgson Impey Cheng Limited.

Conclusion

The Group reported a slight decline in revenue but a notable increase in net profit and margin, driven by the acquisition of Meijia Shell and increased diesel oil sales. Despite challenges from the pandemic and economic conditions, the Group maintained liquidity and focused on long-term growth strategies. No dividends were recommended, and asset pledges were made to secure bank financing. The Group remains committed to improving operational efficiency and expanding its market presence in the diesel and steel product sectors.