HONG KONG, Jun 28, 2022 - (ACN Newswire) - China Wantian Holdings Limited ("China Wantian" or the "Group"; stock code: 01854.HK) is pleased to announce its audited annual results for the year ended 31 March 2022 (the "financial year" or the "year under review").
During the year under review, China Wantian continued to operate its business in Hong Kong. The Group is principally engaged in sourcing, processing and supplying food ingredients, with a focus on the provision of vegetables and fruit to food service operators in Hong Kong. It currently supplies in excess of 1,300 food ingredients to more than 480 customers. Leveraging the relaxation of social distancing measures and 2021 Consumption Voucher Scheme by Hong Kong government, the local consumer sentiment and operating environment in the catering industry gradually improved. Benefitting from an increase in orders with signs of revival in the food and beverage sector, the revenue of the Group recorded remarkable growth prior to the outbreak of the fifth wave of COVID-19 in Hong Kong. Total revenue of the year increased by approximately 19.7% year-on-year to approximately HK$127.7 million, with gross profit and gross profit margin of approximately HK$18.7 million (Year ended 31 March 2021: HK$13.2 million) and 14.6% (Year ended 31 March 2021: 12.4%) respectively. However, in support of its business development and expansion, higher operating expenses were incurred during the year under review, among which were legal and professional fees accrued in relation to the general offer. A provision for expected credit losses of approximately HK$5.4 million was recognised following the assessment of the credit history of its customers and market conditions during the year under review, loss for the year of approximately HK$11.0 million was subsequently recorded. The Board does not recommend the payment of a final dividend for the financial year (Year ended 31 March 2021: Nil).
In May 2022, the Group established its Greater Bay Area headquarters in Shenzhen's Nanshan district, marking its official debut in the high-potential Greater Bay Area market. At the same time, the Group announced that it will double its effort to develop three main businesses including fresh food supply, retail and catering, as well as environmental protection and technology, grasping opportunities and actively enhancing its brand recognition in the Greater Bay Area, in order to expand its customer base and market share while enhancing diversity in business and maintaining its competitiveness.
With regards to fresh food supply business, the Group will capitalise on its advantages in Hong Kong supply chain business, exercising superior task management in respect of procurement, orders, inventory, receipt and delivery, boosting efficiency to deliver fresh ingredients to customers in a safe, efficient and cost-effective manner. At the same time, the Group plans to replicate its successful experience in the local market in the Greater Bay Area market and also identify potential business partners and explore opportunities in this new market to expedite its development, by working with leading partners and efficiently sharing resources, in hopes of grasping the huge demand of the Greater Bay Area market and expanding income source.
In addition, the Group will actively grow its downstream business, including retail- and catering- related business. The Group strives to seize the business opportunities of the retail and catering industry in the Greater Bay Area, further expanding its restaurant network to other cities and its catering business territory in the Greater Bay Area. Leveraging its advantages of the having a whole-industry supply chain that includes upstream, midstream and downstream businesses, the Group will open more restaurants featuring fresh ingredients and gradually establish its food and beverage brand "Wantian Catering". Recently, the Group has strategically opened two restaurants named "Hong Kong Style Seafood Hot Pot Restaurant" and "Korean Seafood BBQ Restaurant" featuring fresh ingredients in Zhongshan city, Guangdong Province. The Group will actively enhance its brand recognition in the Greater Bay Area to expand its customer base and market share.
In environmental protection and technology business, the Group actively supports the national development approach of "modern agricultural technology and environmental protection", integrating agricultural technology and green environmental protection, utilising available rooftop for farming and increasing the urban green area. This enables the Group to promote the idea of green city with the supplies of "safe vegetables", and also promote the concept of green education to enterprises and schools in the Greater Bay Area, thus supporting the region's sustainable development.
The Group will continue to adopt its multi-pronged approach to accelerate the business development in the Greater Bay Area. Subsequent to the establishment of its headquarters in the Greater Bay Area, the Group officially opened its Zhongshan Branch this month. On 23 June 2022, a grand opening and unveiling ceremony was held in its Zhongshan Branch with the presence of Mr. HOOY Kok Wai, Chairman of the Board and Executive Director; and Mr. ZHONG Xueyong, Chief Executive Officer and Executive Director of China Wantian. The establishment of Zhongshan Branch signifies that Zhongshan, Guangdong province will become the Group's regional headquarters in the Zhuhai-Zhongshan-Jiangmen Economic Circle. The Group is also optimistic about the business prospects of Zhongshan, Guangdong Province, striving to embark its three main businesses from Zhongshan, Guangdong Province and gradually expand its businesses to the Greater Bay Area market.
Looking ahead, following the phased easing of social gathering restrictions by Hong Kong government, the catering business environment has improved significantly. The Group expects its business in the city to develop steadily. At the same time, the role of Group's Hong Kong headquarters as a financial centre can provide full support as a strong backing to its Shenzhen headquarters. As the Chinese economy is expected to recover rapidly in the post-pandemic era, the Group's Greater Bay Area business will become increasingly important. In the long run, the business in the Greater Bay Area is expected to bring stable and sustainable income to the Group and poised to become the key growth engine for the Group's business. The Group officially changed its Chinese and English name respectively to "China Wantian Holdings Limited" in December 2021, manifesting its adjustment in business strategies and proactive rejuvenation of corporate image, which fosters the future business development of the Group.
The Group's management expressed that the Greater Bay Area, being one of China's most open and economically vital regions, is of great importance for the nation's continued development. With its huge market, unique regional advantages, open trade environment and dynamic industry structure, the Greater Bay Area will create unprecedented development opportunities for the Group. The establishment of the Group's Shenzhen headquarters is the first part of its business development strategy for the Greater Bay Area. In the future, the Group will focus on developing three main businesses in this market, including fresh food supply, retail and catering, as well as environmental protection and technology. The Group will establish a whole-industry supply chain that includes upstream, midstream and downstream businesses in the Greater Bay Area, and boost its market share by leveraging its unique competitive advantages. The management believe that the three main business initiatives, with their strong synergies, will open up unique opportunities and facilitate the establishment of a leading green brand in the Greater Bay Area.
About China Wantian Holdings Limited
China Wantian (1854.HK) is principally engaged in sourcing, processing and supplying food ingredients, with a focus on the provision of vegetables and fruit to food service operators in Hong Kong. It supplies in excess of 1,300 food ingredients to more than 480 customers. In May 2022, China Wantian established its Greater Bay Area headquarters in Shenzhen, marking its official debut in the Greater Bay Area market. The Group will focus on developing three main businesses in this market, including fresh food supply, retail and catering, as well as environmental protection and technology and actively establish a leading green brand in the Greater Bay Area to provide customers with fresh, healthy and safe food.
For more details, please visit: chinawantian.etnet.com.hk
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