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| Gradually Expands the Greater Bay Area Business and Successfully Establishes Headquarters in Greater Bay Area |
HONG KONG, Nov 18, 2022 - (ACN Newswire) - China Wantian Holdings Ltd (1854:HK) announces its unaudited interim results for the six months ended 30 September 2022 ("Reporting Period"). Following the completion of the general offer in August 2021, the Group has officially stepped towards a new milestone by setting up business operation points in Shenzhen city and Zhongshan city, as well as establishing its headquarters in the Guangdong-Hong Kong-Macao Greater Bay Area ("Greater Bay Area") to expand its business in the region. The year 2022 marks a new chapter for the Group, during which the Group doubles its effort to develop three main businesses including supply chain, catering, as well as environmental protection and technology, in the Greater Bay Area market.
During the Reporting Period, China Wantian Holdings began to develop business in the Greater Bay Area, while maintaining its business 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. During the Reporting Period, the Group's revenue from the existing business remained stable and the total revenue increased by 0.74% year-on-year to approximately HK$68.7 million (six months ended 30 September 2021: approximately HK68.2 million).
During the Reporting Period, thanks to the improvement in product mix, gross profit surged by approximately 33.4% year-on-year to approximately HK$14.9 million (six months ended 30 September 2021: approximately HK$11.2 million), and gross profit margin improved to approximately 21.7% from approximately 16.4% in the same period of last year. However, the establishment of the Group's Shenzhen headquarters and Zhongshan branch and active expansion of its business in the Greater Bay Area has lifted up the Group's operating expenses, thus resulting in a net loss of approximately HK$8.1 million (six months ended 30 September 2021: net loss of approximately HK$1.4 million), inclusive of an expense resulting from share option of HK$3.8 million. The investment in operating expenses is beneficial to the Group's business expansion, and is expected to contribute to the Group's long-term development eventually.
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. Subsequent to the establishment of its headquarters in the Greater Bay Area, the Group continued to adopt its multi-pronged approach to accelerate the business development in the region. At the same time, the Group announced that it will double its effort to develop three main businesses including supply chain and catering, as well as environmental protection and technology to actively establish a leading green brand in the Greater Bay Area. Moreover, the Group officially set up its Zhongshan branch in June 2022, signifying that Zhongshan city 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 city and sees it as the starting point of its three main businesses, followed by gradually expanding its businesses to the Greater Bay Area market.
With regards to supply chain business, the Group capitalises on its advantages in Hong Kong supply chain business, boosting efficiency of every sessions and striving to deliver fresh ingredients namely seafood, meat and vegetables to customers in a safe and efficient manner, with the fastest time and at the lowest cost. At the same time, the Group plans to replicate its successful experience gained in Hong Kong to the Greater Bay Area market. In November 2022, the Group announced that it intends to acquire Shenzhen Wealth Source Trading Development Company Ltd* ("Shenzhen Wealth Source"), which is a domestic fresh food supply chain service provider in the PRC. It marks the Group's expansion of its supply chain business into the Greater Bay Area market. Shenzhen Wealth Source is principally engaged in the trading of live cattle, fruits, vegetables, seafoods and food ingredients in the PRC. It sources live cattle from Inner Mongolia and distributes them to slaughterhouses in the Greater Bay Area. It also supplies and offers fruits, vegetables and seafood to restaurants in the Greater Bay Area. Acquiring Champion Point with well-established business network and customer base in the PRC will allow the Group to offer comprehensive service packages to the customers and broaden customer base, thus expediting the development of supply chain business.
With regards to catering business, the Group strives to seize the business opportunities of the 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 whole-of-industry supply chain in the upstream, midstream and downstream segments, the Group strategically opened restaurants that specialises fresh food ingredients in the heart of Zhongshan's busiest areas, gradually expanding the brand Wantian Catering. The four restaurants cater mainly to young consumers, specialising dishes for customers who love to "check in" and eat healthily. While the reach of Wantian Catering gradually extends, the Group has been actively enhancing its brand recognition in the Greater Bay Area and expanding its customer base in order to grow its market share.
With regards to 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, with a view of supporting sustainable development of the Greater Bay Area. Besides, the Group has also been actively supporting national policies to realise the vision of net-zero carbon emission by establishing a department dedicated to promoting modern agriculture and green education in primary and secondary schools and enterprises in the Greater Bay Area, with an aim of promoting a green and environmentally-friendly lifestyle and making the world a greener place.
Being one of the most open and economically dynamic regions in the PRC, the Greater Bay Area plays an important and strategic role in the overall development of the country, and is now facing unprecedented development opportunities. The Group's management believes that the Greater Bay Area business will be its biggest driver of revenue growth, and is expected to generate steady and sustainable income over the long term. China Wantian Holdings aims to enhance the diversity of its development strategies by expanding its businesses. With the establishment of Shenzhen headquarters being the first step of its Greater Bay Area development strategy, the Group will focus on the synergies among the three businesses namely supply chain and catering, as well as environmental protection and technology, to foster unique strengths to overcome challenges and establish solid foundations.
Looking ahead, leveraging on the extensive business experience of management and its well-established business network in the PRC, the Group will continue to identify potential business opportunities. By adhering to the business philosophy of "People-Oriented, Pragmatism, Creativity and Honest and Responsible", the Group will set up a one-stop food industry chain system covering from the source of cultivation to the food supply chain and the catering businesses, with a view to becoming a leading service provider for good life and a premier green brand in the Greater Bay Area.
About China Wantian Holdings Ltd
China Wantian Holdings Limited (01854.HK) is an investment holding company. 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 supplies in excess of 1,300 food ingredients to more than 480 customers. In May 2022, China Wantian Holdings 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 supply chain and catering, as well as environmental protection and technology to actively establish a leading green brand in the Greater Bay Area to provide customers with fresh, healthy and safe food, meanwhile striving to become a leading lifestyle service provider in China.
For company details, please visit: https://chinawantian.etnet.com.hk.
Topic: Press release summary
Source: China Wantian Holdings Limited
Sectors: Food & Beverage
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