Extracted from Annual Report 2014

Income Statement

Revenue decreased by 7.3% from HK$8,764.1 million to HK$8,126.0 million.

Revenue from the Frozen Fish SCM Division, which accounted for 39.4% of total revenue, fell 27.7% from HK$4,435.0 million to HK$3,205.5 million mainly attributable to lower sales volume.

Revenue from the Fishery and Fish Supply Division, which accounted for 60.6% of total revenue, increased by 13.7% from HK$4,329.1 million to HK$4,920.5 million. This was mainly attributed to contribution from the enlarged Peruvian Fishmeal Operations. However it was partially offset by the drop in sales from the Contract Supply Business following the termination and non-renewal of the Long Term Supply Agreements (the “LSAs”).

By market, China remained the Group’s largest market with sales of HK$5,410.0 million, accounting for 66.6% of total revenue. This was followed by Europe with sales of HK$865.7 million, accounting for 10.7% of total revenue. Sales to South America accounted for 6.0% of total revenue at HK$485.9 million. Sales to East Asia amounted to HK$742.6 million, accounting for 9.1% of total revenue. Sales to other markets accounted for the balance of 7.6% of total revenue.

Gross profit increased by 27.7% from HK$1,404.3 million to HK$1,793.0 million and gross margin improved from 16.0% to 22.1%, mainly attributable to reduced cost, increased operating efficiencies and sales leverage on fixed costs resulting from higher production volume in the enlarged Peruvian Fishmeal Operations under the Fishery and Fish Supply Division.

Other operating income decreased by 19.7% from HK$1,142.9 million to HK$917.4 million. This was due primarily to the absence of fair value gain and gain in bargain purchase from the Group’s acquisition of Copeinca that were recorded in FY2013.

Nonetheless, the Group recorded HK$316.4 million gain on the disposal of 18.09% equity interests in Tassal.

Selling and distribution expenses decreased by 7.5% from HK$247.8 million to HK$229.3 million, due primarily to lower sales volume.

Administrative expenses increased by 21.4% from HK$230.3 million to HK$279.6 million, due primarily to the consolidation of results of Copeinca into the Group.

Finance costs increased by 40.2% from HK$586.2 million to HK$821.8 million due to additional interest expenses as a result of the consolidation of senior notes issued by Copeinca and the additional loan drawn to finance the acquisition of Copeinca.

EBITDA increased by 27.6% from HK$2,361.8 million to HK$3,013.2 million.

Net profit attributable to owners of the Company increased by 27.5% from HK$747.7 million to HK$953.4 million.

Statement of Financial Position

Non-current assets decreased by 11.8% from HK$20,182.1 million to HK$17,798.2 million, due primarily to the disposal of Tassal’s shares and the reclassification of prepayments made to suppliers to current assets after the termination of the LSAs under the Fishery and Fish Supply Division.

Current assets increased by 32.0% from HK$11,313.2 million to HK$14,928.3 million. The increase was due mainly to the reclassification of prepayments made to suppliers to current assets after the termination of the LSAs and higher inventories.

Held-for-trading investments amounted to HK$166.8 million which represents the Group’s 4.64% equity interest in Tassal.

The Group’s inventories mainly consist of frozen fish, fishmeal and fish oil. The 43.9% increase in inventories from HK$923.8 million to HK$1,329.3 million predominantly comprised fishmeal and fish oil from the Fishery and Fish Supply Division. This was due primarily to ramped-up production as a result of improving catch volume by the end of 4QFY2014, and higher costs of raw materials, goods in process and finished goods.

Current liabilities decreased by 24.4% from HK$9,046.6 million to HK$6,842.4 million after the completion of the refinancing of the bridging loan and the full redemption of the CNH bond upon maturity in June 2014.

Non-current liabilities increased by 29.0% from HK$8,386.8 million to HK$10,822.5 million, as a result of the debt refinancing completed in March 2014 and the issuance of the 3-year S$200 million (approximately HK$1,222 million) fixed rate unsecured bonds on 30 July 2014. The proceeds from the bond issuance has been utilized to repay its borrowings and for the working capital of the Group.

Cash Flow and Liquidity

The Group’s operating cash flow was impacted by higher fishmeal and fish oil inventories and increase in trade and other receivables. Trade and bills receivables increased as a result of higher sales recorded in 4QFY2014 due to a higher catch volume in Peru in 4QFY2014. Inventories increased due to higher fishmeal and fish oil inventories. Production was ramped-up following higher catch volume towards the end of 4QFY2014.

As a result, the Group’s net cash outflow from operating activities amounted to HK$885.3 million (FY2013: net cash inflow of HK$4,050.1 million).

As at 28 September 2014, cash and cash equivalents amounted to HK$1,017.9 million, representing a net increase of HK$409.9 million as compared with the position as at 28 September 2013 largely attributed to the disposal of interest in Tassal and refund from the LSAs.