股份代號:239 (於百慕達 註 冊成立之有限公司) 白花油國際有限公 司＊ Stock Code:239 (Incorporated in Bermuda with limited liability) PAK FAH YEOW INTERNATIONAL LIMITED This Interim Report is printed on environmentally friendly paper 2020中期報告 2020INTERIM REPORT 僅供識別 本中期報告採用環保紙印製 ＊ 目 錄 頁 公司資料 2 摘要 3 管理層討論及分析 5 簡明中期財務資料的獨立核數師審閱報告 14 簡明綜合全面收益表 16 簡明綜合財務狀況表 18 簡明綜合權益變動表 20 簡明綜合現金流量表 21 簡明中期財務資料註釋 22 權益披露及其他資料 38 公司資料 二 零 二 零 年 中 期 報 告 白 花 油 國 際 有 限 公 司 2 | --- | --- | |-------------------------------------------|----------------------------- ...

Revenue and Profit Performance - Revenue increased by 4.8% year-on-year to HKD 147,761,000, driven by higher sales in the healthcare business[9] - Underlying recurring profit rose by 33.4% to HKD 35,566,000, reflecting improved performance in healthcare products, particularly in Hong Kong and Macau[9] - Reported profit decreased by 3.3% to HKD 36,046,000, primarily due to fair value losses on investment properties[10] - Basic earnings per share for reported profit fell to HKD 11.6, a decrease of 3.3%[12] - Basic recurring earnings per share increased by 32.6% to HKD 11.4[12] - Total revenue for the group in 2019 was HKD 147,800,000, representing a year-on-year increase of 4.8%[21] - The underlying recurring profit increased by 33.4% to HKD 35,600,000, primarily due to improved performance in the healthcare products business, particularly in Hong Kong and Macau[21] - The reported profit for 2019 decreased by 3.3% to HKD 36,000,000, mainly due to unrealized fair value losses on investment properties[21] - The healthcare segment's revenue for 2019 was HKD 136,611,000, up 4.3% from HKD 130,962,000 in 2018[31] - Revenue from Hong Kong increased by 19.4% to HKD 79,968,000, while revenue from mainland China decreased by 44.8% to HKD 11,393,000[36] Dividends and Shareholder Equity - Total dividend per share increased by 4.3% to HKD 10.80[12] - The company proposed a final dividend of HKD 0.038 per share, maintaining the same level as the previous year, resulting in a total dividend of HKD 0.108 per share for 2019[22] - Shareholders' equity rose by 0.5% to HKD 760,117,000[12] - The total dividend for the year is proposed at HKD 10.8 per share, consisting of an interim dividend of HKD 0.07 and a final dividend of HKD 0.038[123] Market Strategy and Growth - The company aims to expand existing markets while seeking opportunities in new markets for its healthcare products[5] - Long-term growth strategy includes investing in brand building and market share despite an uncertain outlook for 2020[11] - The company aims to maintain growth while continuing to invest in brand building and market share as part of its long-term growth strategy[28] Investment Properties and Financial Management - The company’s investment properties are intended to generate stable income over the long term, providing a buffer in uncertain economic conditions[8] - The fair value loss on investment properties at year-end 2019 amounted to HKD 1,400,000, compared to a gain of HKD 11,500,000 in 2018[23] - The group's investment properties were valued at HKD 346,432,000 as of December 31, 2019, a slight increase of 0.8% from HKD 343,731,000 in 2018[50] - The debt-to-equity ratio was 2.6% as of December 31, 2019, down from 2.9% in 2018, with total bank borrowings amounting to HKD 19,492,000[51] - The current ratio improved to 3.31 times as of December 31, 2019, compared to 2.81 times in 2018, indicating sufficient liquidity to meet short-term obligations[51] Risk Management and Corporate Governance - The board is responsible for ensuring compliance with legal and regulatory requirements[73] - The company has adopted all code provisions of the Corporate Governance Code as set out in the Listing Rules, demonstrating commitment to transparency and accountability[66] - The company’s governance structure includes a mix of professionals with expertise in accounting, finance, and law, contributing to informed decision-making[67] - The board is responsible for ensuring a robust risk management and internal control system, with the audit committee assisting in this responsibility[99] - The risk management plan aims to ensure all significant risks are properly identified, assessed, managed, monitored, and reported to the audit committee and the board[100] Employee and Training Initiatives - The total number of employees was 90 as of December 31, 2019, a slight decrease from 91 in 2018[56] - The company provided around 334 hours of training to employees during the year, emphasizing its commitment to workforce development[134] Environmental, Social, and Governance (ESG) Commitments - The company has established an Environmental, Social, and Governance (ESG) committee to oversee its environmental policies and performance[128] - The group has implemented various energy-saving measures, including replacing traditional lighting with LED lights, to reduce carbon emissions[131] - The company has designed and implemented a self-assessment and evaluation plan for all suppliers to manage environmental and social risks in the supply chain[140] Audit and Financial Reporting - The independent auditor's report was issued on March 26, 2020, by the auditing firm Zhongzheng CPA (Hong Kong) Limited[194] - The company’s financial statements for the year ended December 31, 2019, were audited and deemed to fairly reflect the financial position and performance of the group[180] - The auditors aim to obtain reasonable assurance that the financial statements are free from material misstatement due to fraud or error[190]

Financial Performance - Revenue increased by 65.6% to HKD 74,771,000 compared to HKD 45,150,000 in the same period last year[7] - Basic recurring profit surged by 2,813.1% to HKD 23,538,000 from HKD 808,000 year-on-year[12] - Reported profit rose by 52.9% to HKD 21,331,000, driven primarily by improved performance in the healthcare segment[15] - Earnings per share for reported profit increased by 51.1% to HKD 6.8 from HKD 4.5 in the previous year[15] - Total comprehensive income attributable to owners was approximately HKD 35,822,000, up from HKD 29,872,000 in the previous year[17] - Operating profit for the period was HKD 26,993,000, up 76.5% from HKD 15,291,000 in the previous year[49] - Profit attributable to owners of the company was HKD 21,331,000, representing a 53.1% increase from HKD 13,949,000 in 2018[49] - Basic and diluted earnings per share increased to HKD 6.84 from HKD 4.48, reflecting a growth of 52.8%[51] - Total comprehensive income for the period was HKD 35,822,000, compared to HKD 29,872,000 in the same period last year, marking a 19.8% increase[51] Segment Performance - The healthcare segment's revenue grew by 71.1% to HKD 69,459,000, while property investment revenue increased by 13.0% to HKD 4,948,000[13] - The company reported a significant increase in segment profit to HKD 31,292,000, up 471.1% from HKD 5,479,000 in the previous year[19] - The healthcare segment reported a profit of HKD 31,292,000, while property investment and financial investment segments reported profits of HKD 715,000 and HKD 1,632,000 respectively[65] Revenue Sources - Revenue from Hong Kong surged by 346.3% to HKD 53,977,000, while Macau's revenue decreased by 29.0% to HKD 5,191,000[19] - For the six months ended June 30, 2019, total external sales revenue was HKD 74,771,000, with healthcare contributing HKD 69,459,000, property investment HKD 4,948,000, and financial investment HKD 364,000[65] Expenses and Costs - Total operating expenses decreased by 29.4% to HKD 12,772,000, reflecting reduced sales and promotional expenses[31] - Financial costs decreased by 5.4% to HKD 525,000, with an interest coverage ratio rising to 55.6 from 3.9 in 2018[33] - Tax expenses increased to HKD 5,137,000 from HKD 787,000, mainly due to higher taxable operating profits from Hong Kong subsidiaries[34] Assets and Liabilities - Total assets as of June 30, 2019, amounted to HKD 941,727,000, while total liabilities were HKD 169,771,000, leading to a net asset position of HKD 771,956,000[68] - The current ratio as of June 30, 2019, was 2.76 times, slightly down from 2.81 times on December 31, 2018, indicating sufficient liquidity to meet short-term obligations[39] - The company's total liabilities decreased to HKD 14,264,000 from HKD 24,651,000, reflecting a reduction of approximately 42.3%[87] Shareholder Information - The company declared an interim dividend of HKD 5,454,000, compared to HKD 13,868,000 in the previous year[58] - The company declared a second interim dividend of HKD 0.021 per share, an increase from HKD 0.0175 per share in the previous year[120] - As of June 30, 2019, the total shares held by Mr. Yan Wei Shan amounted to 94,912,322, representing approximately 30.46% of the company's issued shares[112] - Mr. Yan Fu Wei held a total of 72,974,799 shares, which is about 23.42% of the company's issued shares[114] - Brooke Capital Limited is a significant shareholder with 34,283,500 shares, accounting for 11.00% of the company's issued shares[117] Corporate Governance - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with the guidelines during the six months ending June 30, 2019[124] - The audit committee consists of three independent non-executive directors and meets at least twice a year to review the interim financial information[127] - The interim financial information for the six months ending June 30, 2019, has been reviewed by the company's auditor, confirming no amendments were necessary[127] Strategic Focus - The company plans to focus more on local demand and consumption due to anticipated decreases in tourist arrivals[7] - The market strategy will shift focus towards local demand and consumption due to anticipated declines in tourist numbers affecting sales performance[44] - The group has terminated the distribution rights in mainland China and appointed a new distributor effective July 1, 2019, aiming to enhance brand awareness and profitability[44] Investment and Valuation - The company recorded a net revaluation surplus of HKD 3,700,000 from investment properties in Hong Kong, down from HKD 11,960,000 in 2018[85] - The company experienced a net revaluation loss of HKD 7,275,000 from investment properties in the UK, compared to a revaluation gain of HKD 1,403,000 in the previous year[85] - The company's valuation estimates are based on multiple factors, including operating cash flows and industry trends[108]

Financial Performance - Revenue decreased by 20.9% year-on-year to HKD 141,043,000, attributed to a decline in sales contribution from the healthcare business[11] - Reported profit fell by 63.7% to HKD 37,280,000, primarily due to a decrease in fair value gains from investment properties[12] - Underlying recurring profit dropped by 58.0% to HKD 26,670,000, reflecting weak performance in the healthcare product business, especially in Hong Kong and mainland China[11] - Earnings per share for reported profit decreased by 63.5% to HKD 12.0, while underlying recurring earnings per share fell by 57.8% to HKD 8.6[11] - Total dividends per share were reduced by 30.3% to HKD 10.35[11] - The total comprehensive income attributable to the company's owners was approximately HKD 52,914,000, down from HKD 154,419,000 in 2017[31] - The company proposed a final dividend of HKD 0.038 per share, down from HKD 0.056 per share in 2017, resulting in a total dividend of HKD 0.1035 per share for 2018[19] Market Strategy - The company aims to expand existing markets for current products while seeking opportunities to enter new markets in the short to medium term[10] - Long-term strategy includes extending market reach to mainstream distribution channels and local communities in overseas markets[10] - The company plans to continue focusing on growth and enhancing brand awareness in various operational regions despite increasing market challenges[25] - The North American market is expected to see continued sales growth in 2019 following the appointment of a new exclusive distributor[35] - Southeast Asia maintained stable growth, with new retail stores being added and new market strategies implemented to strengthen the brand[35] Corporate Governance - The company has maintained a strong corporate governance structure, adhering to the corporate governance code as per the Hong Kong Stock Exchange's listing rules[67] - The chairman and CEO roles are held by the same individual, with responsibilities shared among executive directors to ensure a balance of power[67] - The board includes one non-executive director and three independent non-executive directors, providing diverse independent perspectives[67] - The company is committed to continuous review and enhancement of its corporate governance practices[67] - The company emphasizes transparency and accountability to shareholders in its governance approach[67] Risk Management - The board is responsible for ensuring a robust risk management and internal control system, with the audit committee assisting in this responsibility[109] - The company has implemented a risk management plan to identify, assess, manage, and monitor all significant risks faced by the group[110] - The internal audit company has been engaged to assist the board in reviewing the internal control system, with a three-year internal audit plan approved by the board[117] - The board believes that effective risk management mechanisms and internal control systems were implemented for the fiscal year ended December 31, 2018[119] Environmental, Social, and Governance (ESG) - The company established an Environmental, Social, and Governance (ESG) committee to oversee its environmental policies and performance[138] - The company emphasizes effective raw material management to mitigate risks associated with resource scarcity and protect endangered plants[139] - The company has implemented guidelines for waste management to ensure compliance with relevant laws and minimize environmental impact[140] - The group made charitable donations totaling HKD 79,000 during the year, with employees raising an additional HKD 170,000 for charity[134] Employee Management - Employee turnover rate decreased from 13.0% in 2017 to 9.9% in 2018[143] - Training hours for employees increased from 287 hours in 2017 to 467 hours in 2018[144] - The group has established a policy to ensure fair and competitive compensation for employees[143] Supplier and Customer Relations - The top five suppliers accounted for over 70% of the group's total revenue during the reporting year[148] - The top five customers accounted for 70.7% of the group's total revenue in 2018, with the largest customer contributing 18.2%[178] - The main suppliers have established over 15 years of business relationships with the group, with procurement from the top five suppliers accounting for approximately 75% of total purchases[150] Financial Position - The debt-to-equity ratio as of December 31, 2018, was 2.9%, down from 3.6% in 2017[50] - Total bank borrowings amounted to HKD 21,893,000 as of December 31, 2018, compared to HKD 26,660,000 in 2017[50] - The current ratio as of December 31, 2018, was 2.81 times, down from 2.98 times in 2017[50] - The valuation of investment properties as of December 31, 2018, was HKD 343,731,000, a slight increase of 0.8% from HKD 340,961,000 in 2017[48] Audit and Compliance - The independent auditor, Crowe Horwath (HK) CPA Limited, has audited the consolidated financial statements for the year ended December 31, 2018[183] - The audit committee reviewed the financial statements for the year ending December 31, 2017, and the six months ending June 30, 2018[88] - The company has established a whistleblowing policy to address concerns regarding financial reporting and internal controls[88]