Group 1: New Listings in Hong Kong - Five companies, including Lens Technology, Geek+, Peak Technology, Dazhong Dental, and Xunzhong Communication, were listed on the Hong Kong Stock Exchange on July 9, reflecting a growing interest in emerging industries and technology firms [1] - Four out of the five companies saw an increase in their stock prices during the pre-market trading on July 8, indicating positive market sentiment [1] Group 2: Bond Issuance by Henderson Land - Henderson Land announced plans to issue Hong Kong dollar-denominated guaranteed convertible bonds through its subsidiary, targeting professional investors only [2] - The net proceeds from the bond issuance are intended for general corporate purposes or refinancing, showcasing the company's proactive approach to capital market tools [2] Group 3: Tianqi Materials' Hong Kong Listing - Tianqi Materials announced its intention to issue H-shares and apply for listing on the Hong Kong Stock Exchange to enhance its global strategy and improve its capital structure [3] - This move is expected to attract foreign investment and signal the internationalization of the new materials industry [3] Group 4: Huabao International's Financial Product Investment - Huabao International reported an investment of 565 million yuan in financial products from Zheshang Bank, indicating a strategy for diversified asset allocation [4] - This investment aims to enhance capital efficiency and may provide funding for future business development [4] Group 5: Hong Kong Market Performance - The Hang Seng Index closed at 24,148.07, with a gain of 1.09% on July 8, while the Hang Seng Tech Index rose by 1.84% [5] - The overall market performance reflects a positive trend in investor sentiment towards the Hong Kong stock market [5]

Group 1: Company Developments - Zhou Li Fu Jewelry Co., Ltd. has successfully passed the Hong Kong Stock Exchange listing hearing, aiming to expand market share and enhance brand influence through its listing [1][2] - Shenzhen Xipuni Precision Technology Co., Ltd. has re-submitted its application for listing on the Hong Kong Stock Exchange after a previous application lapsed, with a focus on securing funds for R&D and market expansion [3][4] Group 2: Financial Performance - Tai Hing Property is expected to report a significant pre-tax loss of approximately HKD 49.2 million for the fiscal year ending March 31, 2025, primarily due to a fair value loss on investment properties [4][5] - Huabao International has invested a total of HKD 525 million in financial products, indicating active participation in the financial market [6] Group 3: Market Overview - The Hong Kong stock market showed positive movement on June 4, with the Hang Seng Index rising by 0.60%, the Hang Seng Tech Index increasing by 0.57%, and the YQ Index up by 0.67% [7]

Financial Performance - Revenue for 2024 reached RMB 3,373,265, an increase of 1.97% from RMB 3,307,839 in 2023[10] - Gross profit decreased to RMB 1,441,444, resulting in a gross profit margin of 42.7%, down from 44.4% in the previous year[10] - EBITDA for 2024 was a loss of RMB 69,690, compared to a profit of RMB 695,648 in 2023, reflecting an EBITDA margin of -2.1%[10] - Operating loss for the year was RMB 401,946, with an operating profit margin of -11.9%, a significant decline from 11.4% in 2023[10] - Net cash generated from operating activities was RMB 679,702, down from RMB 965,266 in the previous year[10] - The company reported a net cash position of RMB 5,329,193, an increase from RMB 2,021,538 in 2023[10] - Adjusted EBITDA for 2024 was RMB 624,126, with an adjusted EBITDA margin of 18.50%, down from 23.20% in 2023[10] - The total dividend per share for the year remained at 8.5 HK cents, with a dividend payout ratio of 106.9%[10] Strategic Development - The Group's strategic plan for 2025-2027 focuses on coordinated and diversified development, technology-driven empowerment, and international business expansion[26] - The Group aims to strengthen R&D innovation and drive growth through a culture of innovation and the development of Next-Generation Products (NGP)[26] - The Group's commitment to "Green, Nutritious and Healthy" as its core product philosophy guides its transformation towards a diversified global business structure[26] - The Group has established a three-year strategic development plan for 2025-2027, focusing on "Green, Nutritious, and Healthy" product lines and enhancing international business expansion[27] - The Group aims to strengthen R&D innovation by establishing an open and inclusive culture, optimizing internal collaboration, and focusing on Next Generation Products (NGP) to achieve breakthroughs in key technologies[27] - A dual-engine growth strategy will be adopted, balancing organic growth and mergers and acquisitions, ensuring investments align with the Group's strategic roadmap and principles of "Green, Nutritious, and Healthy"[30] Market Position and Industry Trends - The Group maintains a leading position in China's flavours and fragrances industry, with significant investments in R&D and production capabilities across multiple regions[11][12] - The Group is a leader in China's aroma raw materials field, with significant market share and advanced production technology[17] - The Group's production capacity and sales revenue in the aroma raw materials industry have reached leading domestic and international levels[20] - The Group's strategic vision includes becoming the global leader in the aroma raw materials industry and enhancing its position in the condiment market[23] - The condiment industry is gradually developing towards compound, convenient, and healthy products, driven by regional penetration and international market demand[51] Financial Stability and Debt Management - The debt ratio improved to 1.6%, down from 3.6% in the previous year, indicating better financial stability[10] - The Group's cash and bank balances increased to RMB 5,562,231,000 as of December 31, 2024, compared to RMB 2,539,493,000 in the previous year[175] - Total bank borrowings decreased to RMB 194,000,000 as of December 31, 2024, down from RMB 455,250,000 in the previous year, with a debt ratio of 1.6%[176] Research and Development - The Group's investment in R&D was approximately RMB 245 million, accounting for 7.3% of revenue, reflecting a year-over-year decrease of 0.4 percentage points[115] - The Group obtained several patents related to food flavors, enhancing its competitiveness in the market[116] - The Group has obtained multiple patents in the field of heated non-combustion tobacco products, enhancing its competitiveness in the international market[123] Challenges and Market Dynamics - The economic landscape is expected to remain challenging in 2025, but the Group is prepared to embrace these challenges and seize emerging opportunities for sustainable growth[35] - The food and beverage industry faced pressure due to a sluggish consumer market and uncertainty on the demand side[48] - The tobacco flavour market has seen a shift in customer demand patterns, leading to reduced demand for tobacco flavours as customers develop in-house flavour capabilities[73] Operational Efficiency - The Group's digital transformation program includes the completion of key platforms such as SAP ERP, enhancing operational efficiency and financial data management[132] - The integration of AI technology in the internal office platform has significantly improved document processing efficiency and R&D capabilities[133] - The average trade receivables turnover period improved to 81 days, a decrease of 16 days from 97 days in the previous year, attributed to a reduction in average trade receivables[183] Revenue Breakdown - Revenue from the F&F and Food ingredients business decreased by 8.6% to approximately RMB1,339 million, accounting for 39.6% of total revenue[59] - The revenue of the tobacco flavour CGU decreased by approximately 15.89% from approximately RMB719 million in 2023 to approximately RMB604 million in 2024, primarily due to changes in customer demand and purchasing policies[87] - The condiment business generated revenue of approximately RMB 775 million, a year-over-year increase of 2.7%, accounting for approximately 23.0% of the Group's total revenue[109] Impairments and Losses - Goodwill impairment recognized was approximately RMB630 million, compared to approximately RMB56.5 million in the previous year[55] - The Group recognized a goodwill impairment of RMB 630,887,000 for the year, significantly higher than RMB 56,502,000 in the previous year, impacting overall profitability[172] - Provisions for impairment of receivables amounted to approximately RMB 60,732,000, up from RMB 23,745,000 in the previous year, indicating increased financial challenges[160]

Financial Performance - For the fiscal year ending December 31, 2024, the company reported a revenue of RMB 3,373,265 thousand, representing a 2.0% increase from RMB 3,307,839 thousand in 2023[3]. - The gross profit decreased to RMB 1,441,444 thousand, down 1.9% from RMB 1,469,365 thousand, resulting in a gross margin of 42.7%, compared to 44.4% in the previous year[3]. - The company recorded an operating loss of RMB 401,946 thousand, a significant decline from an operating profit of RMB 378,051 thousand in 2023, leading to an operating margin of -11.9%[3]. - The net loss attributable to equity holders was RMB 385,509 thousand, compared to a profit of RMB 233,633 thousand in 2023[3]. - The adjusted EBITDA for the year was RMB 624,126 thousand, down 18.5% from RMB 766,103 thousand, with an adjusted EBITDA margin of 18.5% compared to 23.2% in the prior year[3]. - The company reported a net loss of RMB 458,857,000 for the year ended December 31, 2024, compared to a profit of RMB 290,483,000 in the previous year, indicating a significant decline in profitability[22][23]. - The operating profit margin for 2024 was -11.9%, down from 11.4% in 2023[39]. - The group reported a loss of RMB 458,857,000 for the year ended December 31, 2024, a decline of RMB 749,340,000 compared to a profit of RMB 290,483,000 in the previous year, primarily due to goodwill impairment of RMB 630,887,000[92]. Assets and Liabilities - Total assets decreased to RMB 15,002,076 thousand from RMB 16,002,111 thousand in 2023, reflecting a decline in overall asset value[12]. - The company reported a total equity of RMB 13,720,356 thousand, down from RMB 14,271,137 thousand in the previous year[12]. - The total liabilities decreased to RMB 1,281,720 thousand from RMB 1,730,974 thousand, showing a reduction in financial obligations[12]. - As of December 31, 2024, the group's net current assets were RMB 7,034,542,000, an increase from RMB 6,975,409,000 in the previous year, with cash and bank deposits rising to RMB 5,562,231,000 from RMB 2,539,493,000[95]. - Total bank loans amounted to RMB 194,000,000 as of December 31, 2024, down from RMB 455,250,000 in the previous year, with a debt ratio of 1.6%, a decrease of 2.0 percentage points from 3.6%[96]. Revenue Segmentation - The segment revenue for the Flavor and Food Ingredients business was RMB 1,356,794,000, while the Tobacco Raw Materials segment generated RMB 486,634,000, and the Fragrance Raw Materials segment contributed RMB 799,312,000[22]. - The sales revenue from the flavor and food ingredients business was approximately RMB 1.339 billion, a decrease of 8.6% year-on-year, accounting for about 39.6% of total revenue[47]. - The sales revenue for the tobacco flavoring CGU decreased by 15.89% from approximately RMB 719 million to about RMB 604 million compared to the previous year[56]. - The sales revenue of the flavor raw materials business increased by 26.7% to approximately RMB 792 million, contributing about 23.5% to the group's total revenue[69]. - The revenue from the fragrance raw materials segment increased by 26.7% to RMB 791,523,000, while the seasoning segment's revenue rose by 2.7% to RMB 774,569,000[82]. Expenses and Costs - Total sales cost, marketing, and administrative expenses increased to RMB 3,232,865,000 in 2024 from RMB 2,996,149,000 in 2023, representing an increase of approximately 7.9%[25]. - Employee and welfare expenses rose to RMB 778,305,000 in 2024 from RMB 652,530,000 in 2023, an increase of approximately 19.3%[25]. - Selling and marketing expenses rose by 13.3% to RMB 370,150,000, accounting for approximately 11.0% of total revenue, up from 9.9%[86]. - Administrative expenses increased by 12.0% to RMB 930,894,000, representing about 27.6% of total revenue, up from 25.1%[87]. - The company incurred a total depreciation expense of RMB 227,746,000 and amortization expenses of RMB 104,510,000 for the year ended December 31, 2024[22]. Goodwill and Impairment - The group recognized goodwill impairment of approximately RMB 630 million, compared to RMB 56.5 million in 2023, significantly impacting operating results[46]. - A goodwill impairment loss of approximately RMB 504.56 million was recognized for the tobacco flavoring CGU as of December 31, 2024[58]. - The company recognized a goodwill impairment of approximately RMB 29.31 million for Yancheng Chunzhus CGU, resulting in a goodwill balance of zero[72]. Dividends and Shareholder Returns - The company proposed a special dividend of HKD 0.05 per share, an increase from HKD 0.042 per share in the previous year[3]. - The board recommends a special dividend of HKD 0.05 per share, compared to HKD 0.042 per share in 2023, amounting to approximately RMB 149.55 million (2023: RMB 123.35 million) to reward shareholders[123]. - The company did not declare a final dividend for the year 2023, which was HKD 0.008 per share[123]. Strategic Initiatives and Future Outlook - The company plans to adopt new accounting standards effective from January 1, 2025, which may impact future financial reporting[15][16]. - The company is currently evaluating the impact of new and revised accounting standards on its consolidated financial statements[18]. - The company’s management is focused on enhancing its research and development capabilities in the Flavor and Food Ingredients segment to drive future growth[21]. - The company is focusing on the development of new tobacco products and market opportunities, particularly in the area of reduced-harm technologies[48]. - The company is advancing digital transformation to lower costs and improve operational efficiency[42]. - The management outlined strategic measures for 2025, focusing on R&D innovation, AI empowerment, and international development[79][80]. Compliance and Governance - The group has adhered to the corporate governance code as stipulated by the Hong Kong Stock Exchange for the fiscal year ending December 31, 2024, ensuring compliance with best practices[120]. - The audit committee, composed entirely of independent non-executive directors, has reviewed the group's audited annual performance[128]. - The company has adopted the standard code for securities trading by directors, confirming compliance for the current year[122]. Investment and Financial Management - The company is investing surplus cash in financial products offered by banks in China to achieve higher interest rates while maintaining liquidity[113]. - The group has committed to monitoring market conditions and evaluating investment opportunities to optimize its investment portfolio, focusing on balancing risk and return for sustainable growth and financial stability[114].

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 1,582,285,000, representing a 3.0% increase from RMB 1,535,704,000 in 2023[9] - Gross profit for the same period was RMB 709,254,000, with a gross profit margin of 44.8%, down from 46.0% in 2023[9] - EBITDA decreased by 40.2% to RMB 262,021,000, resulting in an EBITDA margin of 16.6%, down from 28.5%[9] - Operating profit fell by 64.6% to RMB 100,287,000, with an EBIT margin of 6.3%, down from 18.4%[9] - Profit for the period attributable to equity holders was RMB 29,662,000, a decrease of 80.7% compared to RMB 153,970,000 in 2023[9] - Net cash generated from operating activities was RMB 113,507,000, down 67.7% from RMB 351,235,000[9] - Basic earnings per share decreased by 80.7% to approximately RMB0.92 cents, compared to approximately RMB4.77 cents in 1H 2023[23] - The decline in operating profit was primarily due to a share-based compensation expense of approximately RMB42.184 million recognized for the share incentive scheme[24] - An impairment of goodwill of approximately RMB29.309 million and an impairment of assets of approximately RMB20.189 million were recognized during the Reporting Period[24] - Profit before income tax for the six months ended June 30, 2024, was RMB 78,999,000, down 72.4% from RMB 286,738,000 in the previous year, mainly due to various impairment provisions and increased expenses[111] - The Group's profit for the period was RMB 46,286,000, a decrease of 76.9% compared to RMB 200,353,000 for the same period last year, driven by significant impairment charges and increased marketing expenses[116] Market Expansion and Strategy - The management is exploring overseas markets, particularly in Southeast Asia, to expand market reach and promote sales[11] - The Group is focusing on overseas market expansion due to insufficient domestic demand, particularly in Southeast Asia[13] - The Group plans to focus on developing domestic and Southeast Asia markets for flavors and fragrances, aiming to generate more sales through research and analysis[90] - The Group will continue to invest in R&D for emerging tobacco products and expand international markets to promote product sales[90] Production and Efficiency - The company has implemented a "Lean Production" program to improve resource use and production efficiency[11] - The implementation of "lean production" plans in more factories aims to enhance resource utilization and production efficiency[13] - The Group has implemented a "Lean Production" program to optimize production efficiency and reduce costs, aiming to improve profit margins[51] - The implementation of the "Lean Production" program aims to reduce costs and increase efficiency across various product lines[90] Research and Development - The Group invested approximately RMB 121 million in R&D, representing 7.7% of revenue, a slight increase from 7.6% in the previous year[68] - The Group has been granted 7 invention patents and 7 utility model patents related to food flavors and production equipment, enhancing its market capacity[69] - The Group applied for 21 patents in the tobacco raw materials segment, focusing on HNB cigarette products and production methods[70] - New product categories, such as soup base products, have been developed, with three invention patents applied for enhancing flavor and aroma[75] - The Group applied for three invention patents related to soup base products to enhance technical capabilities in this new product category[76] Financial Position and Cash Flow - As of June 30, 2024, the Group's net current assets were RMB 7,100,491,000, an increase from RMB 6,975,409,000 as of December 31, 2023, indicating a stable financial position[117] - Cash and bank balances, including fixed deposits, amounted to RMB 2,183,601,000 as of June 30, 2024, down from RMB 2,539,493,000 at the end of 2023, with over 60.0% held in RMB[119] - The fair value of outstanding bank wealth management products held by the Group as of June 30, 2024, was RMB 3,798,085,000, slightly down from RMB 3,847,748,000 as of December 31, 2023[119] - The Group's debt ratio was 1.8% as of June 30, 2024, down from 3.6% as of December 31, 2023, representing a decrease of 1.8 percentage points[124] - For the six months ended June 30, 2024, net cash generated from investing activities was RMB 39,886,000, a significant recovery from net cash used of RMB 1,261,019,000 in the same period last year[122] Shareholder and Corporate Governance - The shareholders approved the adoption of the 2024 Share Award Scheme and the 2024 Share Option Scheme on May 14, 2024, while terminating the 2022 Share Award Scheme and the 2016 Share Option Scheme[159] - As of June 30, 2024, Director CHU Lam Yiu holds 2,293,408,900 shares, representing 71.00% of the issued share capital[155] - The 2024 Share Award Scheme aims to recognize contributions, attract high-caliber participants, and align their interests with shareholders[188] - The 2024 Share Award Scheme aims to incentivize participants for their contributions to the group's growth and development, aligning their interests with those of shareholders[189] Operational Challenges - The Group's operating profit decreased by 64.6% to RMB 100,287,000, primarily due to goodwill impairment and increased share-based compensation expenses[107] - The Group's cautious approach led to a downward adjustment of future profit forecasts for Yancheng Chunzhus, confirming goodwill impairment of approximately RMB 29.309 million[59] - The financial performance highlights a decrease in both adjusted EBITDA and operating profit compared to the previous year, indicating potential challenges in core operations[150]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 1,582,285 thousand, representing a 3.0% increase from RMB 1,535,704 thousand in the same period of 2023[2] - Gross profit for the same period was RMB 709,254 thousand, slightly up by 0.4% from RMB 706,732 thousand[2] - EBITDA decreased by 40.2% to RMB 262,021 thousand, with an EBITDA margin of 16.6%, down from 28.5% in the previous year[2] - Operating profit fell by 64.6% to RMB 100,287 thousand, resulting in an operating margin of 6.3%, compared to 18.4% in the prior year[2] - Net profit for the period was RMB 46,286 thousand, a significant decline of 76.9% from RMB 200,353 thousand in the same period last year[2] - Earnings attributable to equity holders of the company were RMB 29,662 thousand, down 80.7% from RMB 153,970 thousand[2] - Basic and diluted earnings per share decreased to RMB 0.92 from RMB 4.77, reflecting an 80.7% drop[2] - Adjusted EBITDA was RMB 356,172 thousand, down 21.7% from RMB 455,077 thousand, with an adjusted EBITDA margin of 22.5%[2] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 15,438,254 thousand, a decrease from RMB 16,002,111 thousand as of December 31, 2023[6] - Cash and bank deposits amounted to RMB 2,183,601 thousand, down from RMB 2,539,493 thousand at the end of 2023[6] - As of June 30, 2024, total equity amounted to RMB 14,170,258 thousand, a decrease from RMB 14,271,137 thousand as of December 31, 2023, representing a decline of approximately 0.8%[7] - The total liabilities decreased to RMB 1,267,996 thousand from RMB 1,730,974 thousand, indicating a reduction of about 26.7%[7] Segment Performance - The segment performance for the flavor and food ingredients business showed a profit of RMB 137,858 thousand, while the tobacco raw materials segment reported a loss of RMB 3,417 thousand[13] - The group's sales revenue for the flavor and food ingredients business was approximately RMB 652 million, a decrease of 4.3% year-on-year, accounting for about 41.2% of total revenue[45] - The operating profit for the flavor and food ingredients segment was approximately RMB 138 million, down 42.1% year-on-year, with an operating profit margin of 21.1%, a decrease of 13.8 percentage points[45] - The sales revenue for the tobacco raw materials business was approximately RMB 164 million, a decrease of 12.5% year-on-year, accounting for about 10.4% of total revenue[50] Research and Development - Research and development expenses increased to RMB 121,362,000 for the six months ended June 30, 2024, compared to RMB 116,321,000 in 2023, representing a growth of 4.4%[19] - Research and development expenses amounted to approximately RMB 121 million, representing 7.7% of sales revenue, an increase of 0.1 percentage points year-on-year[58] Cash Flow and Financing - The net cash generated from investment activities for the six months ended June 30, 2024, was RMB 39,886,000, compared to a net cash outflow of RMB 1,261,019,000 for the same period in 2023[74] - The net cash used in financing activities for the six months ended June 30, 2024, was RMB 444,621,000, which included repayment of bank loans of RMB 374,250,000[75] - Total loans as of June 30, 2024, were RMB 219,000,000, significantly reduced from RMB 455,250,000 as of December 31, 2023, marking a decrease of about 52.1%[31] Expenses - Total government grants received decreased to RMB 68,021,000 in 2024 from RMB 91,953,000 in 2023, indicating a reduction of 26%[17] - Total expenses for employee benefits increased to RMB 370,992,000 in 2024 from RMB 309,362,000 in 2023, reflecting a rise of 19.9%[19] - Selling and marketing expenses increased by 16.5% to RMB 165,416,000, representing about 10.5% of total revenue, up from 9.2% in the previous year[66] - Administrative expenses rose by 17.7% to RMB 458,285,000, accounting for approximately 29.0% of total revenue, an increase of 3.6 percentage points from the previous year[67] Dividends and Shareholder Returns - The company plans to declare an interim dividend of RMB 0.3 per share for the six months ended June 30, 2024, compared to RMB 1.6 cents per share in 2023[27] - The company declared an interim cash dividend of HKD 0.3 per share and a special dividend of HKD 3.2 per share for the six months ending June 30, 2024, compared to HKD 1.6 and HKD 1.9 per share in 2023 respectively[86] Operational Strategies - The company plans to continue expanding its product lines in the flavor and food ingredients sector, focusing on R&D and innovation[12] - The group is focusing on expanding overseas markets and implementing lean production strategies to enhance efficiency and reduce costs[39] - The company is focusing on digital transformation with four operational platforms, improving operational efficiency and data management capabilities[60] Impairments and Losses - The decline in operating profit was primarily due to a share-based compensation expense of approximately RMB 42.18 million related to a stock incentive plan approved on January 5, 2024[43] - The group recognized goodwill impairment of approximately RMB 29.31 million and asset impairment of approximately RMB 20.19 million during the reporting period[43] - The company has adjusted the future profit forecast for Yancheng Chunzhu due to external economic challenges, confirming a goodwill impairment of approximately RMB 29.31 million[55] Market Conditions and Future Outlook - The company is evaluating the impact of new accounting standards on its financial statements, which may affect future reporting[11] - The group plans to focus on domestic and Southeast Asian market expansion, new product development, and cost reduction strategies to enhance operational efficiency[61]

Financial Performance - Revenue for 2023 was RMB 3,307,839,000, a decrease of 13.6% from RMB 3,828,984,000 in 2022[5] - Gross profit for 2023 was RMB 1,469,365,000, resulting in a gross profit margin of 44.4%, down from 49.0% in 2022[5] - Operating profit for 2023 was RMB 378,051,000, a significant recovery from an operating loss of RMB 607,975,000 in 2022[5] - Profit for the year was RMB 290,483,000, compared to a loss of RMB 901,050,000 in the previous year[5] - Adjusted profit for the year was RMB 346,985,000, down from RMB 606,660,000 in 2022[5] - Basic earnings per share for 2023 was 7.23 RMB cents, recovering from a loss of 32.65 RMB cents in 2022[5] - Net cash generated from operating activities was RMB 965,266,000, an increase from RMB 798,746,000 in 2022[5] - Total equity decreased to RMB 14,271,137,000 from RMB 14,557,438,000 in 2022[5] - The company maintained a dividend payout ratio of 106.9% for the year, with a total dividend per share of 8.5 HK cents[5] - The debt ratio improved to 3.6% from 5.4% in the previous year, indicating a stronger financial position[5] Market Position and Strategy - The Group is a market leader in China's flavours & fragrances industry, owning several well-known brands such as "Huabao Flavours" and "Hedon" with a significant market share[8] - The Group has established a comprehensive industry chain covering raw materials, processing, and consumption, enhancing its competitive strength in the taste-based fast-moving consumer goods sector[13] - The Group plans to leverage its industry advantages to build a leading aroma raw materials production base in Asia and globally[11] - The Group aims to consolidate its leading role in the condiment industry by enhancing its product mix and establishing it as a growth point[15] - The Group's strategic focus includes exploring new markets through product and technology innovation while maintaining its existing market share in flavours and fragrances[15] Production and Technology - In 2022, the Group completed the construction of a factory in Indonesia to produce heat-not-burn RTL, aiming to capitalize on the global development of HNB cigarettes[10] - The Group's production technology for tobacco raw materials has reached advanced international levels, with its major technical parameters recognized as the highest in domestic production[10] - The Group implemented a "Lean Production" program, which resulted in significant progress in production cost reduction and product quality improvement across pilot companies[20] - The Group plans to promote the "Lean Production" model across all companies to enhance production efficiency and product competitiveness[20] Research and Development - The Group's R&D capabilities are supported by multiple production bases and technology centers located in regions including Shanghai, Guangdong, and Germany[8] - R&D investment was approximately RMB 253 million, accounting for 7.7% of revenue, up from 7.0% in 2022, with all R&D expenses fully expensed[62] - The Group obtained 12 patents in the field of flavors and fragrances, showcasing its R&D capabilities and innovation in food and tobacco products[62] - The Group applied for three invention patents related to core products and compound condiments, indicating ongoing innovation in the condiment sector[65] Market Trends and Economic Environment - The overall economic environment remains challenging, with potential geopolitical conflicts and insufficient consumer confidence impacting market demand[22] - In 2023, China's cigarette production volume reached 48.855 million cases, representing a year-on-year increase of 0.4%[26] - The tobacco industry realized industrial and business tax and profit amounting to RMB 1,521.7 billion, a year-on-year increase of 5.6%[26] - The fiscal income of the tobacco industry was RMB 1,502.8 billion, reflecting a year-on-year increase of 4.3%[26] Segment Performance - Revenue from the F&F and Food ingredients business decreased to approximately RMB1,464 million, accounting for approximately 44.3% of the Group's total revenue[38] - The revenue from the tobacco raw materials business was approximately RMB465 million, representing a year-on-year increase of 2.3% and accounting for approximately 14.0% of the Group's total revenue[49] - The Group's condiment business revenue was approximately RMB754 million in 2023, a year-on-year increase of 31.6% from RMB573 million in 2022, accounting for 22.8% of total revenue[57] - Revenue from the aroma raw materials business decreased by 32.4% to approximately RMB 625 million, accounting for about 18.9% of total revenue, with an operating loss of approximately RMB 83.41 million[53] Corporate Governance - The Company has adopted corporate governance practices to enhance transparency and accountability, continuously improving its governance standards[120] - The Company has complied with the corporate governance code provisions throughout the financial year ended December 31, 2023, except for specific disclosures[121] - The Company has a balanced Board consisting of six Executive Directors and three Independent Non-Executive Directors (INEDs) as of the report date[129] - The primary objective of the Board is to maximize profitability and enhance long-term value for shareholders[135] Leadership and Management - The company has a strong leadership team with diverse backgrounds in finance, management, and industry expertise, enhancing its strategic capabilities[107] - The Group's focus on innovation and product development is supported by experienced professionals in flavour and fragrance industries[115] - The leadership team includes members with significant experience in both local and international markets, contributing to the company's growth strategy[110] Sustainability and ESG - An ESG strategy and execution team was established to prioritize sustainable development and improve the Group's ability to meet ESG-related requirements from customers[21] - The Group's management system for sustainable development was improved to enhance its ability to cope with climate risks[24] - The effective management of ESG risks is a key focus, integrated with other business and operational risks under the risk management framework[183] Employee and Workforce - As of December 31, 2023, the Group employed a total of 3,995 employees, an increase from 3,875 employees as of December 31, 2022[67] - The Group's workforce as of December 31, 2023, includes 2,503 male employees (62.7%) and 1,492 female employees (37.3%), compared to 2,492 male (64.3%) and 1,383 female (35.7%) as of December 31, 2022[173] Risk Management - The internal control system is designed to provide reasonable assurance against material misstatement or loss, safeguarding assets and ensuring compliance with relevant legislation[181] - The Company has established an Internal Audit Department with its scope of work advised by the Audit Committee to enhance risk management[182] - The Company has adopted a risk management and internal control policy to safeguard assets and ensure compliance with relevant laws and regulations[188]

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 3,307,839, a decrease of 13.6% compared to RMB 3,828,984 in 2022[2] - Gross profit for the same period was RMB 1,469,365, down 21.7% from RMB 1,877,563 in the previous year, resulting in a gross margin of 44.4%[2] - Operating profit for the year was RMB 378,051, a significant recovery from an operating loss of RMB 607,975 in 2022[2] - Adjusted net profit for the year was RMB 346,985, representing a decrease of 42.8% from RMB 606,660 in 2022[2] - Basic and diluted earnings per share for the year were RMB 7.23, compared to a loss of RMB 32.65 per share in the previous year[4] - The company reported a net profit for the year of RMB 290,483 million, reflecting the company's overall financial health[16] - The profit attributable to equity holders of the company was RMB 233,633,000, an increase of RMB 1,288,180,000 from a loss of RMB 1,054,547,000 in the previous year[75] Dividends - The company proposed a final dividend of HKD 0.8 cents per share, with an annual dividend payout ratio of 106.9%[2] - The company proposed a final dividend of HKD 0.8 per share and a special dividend of HKD 4.2 per share for the year ended December 31, 2023, totaling approximately RMB 146,351,000[30] - The group reported a total of RMB 249,833,000 in dividends for the year ended December 31, 2023, compared to RMB 244,706,000 in 2022, showing a slight increase[29] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 16,002,111, a decrease from RMB 16,619,022 in 2022[6] - Total liabilities decreased to RMB 1,730.974 million from RMB 2,061.584 million year-over-year, indicating a reduction of approximately 16%[16] - The company’s equity attributable to shareholders was RMB 12,480,431, down from RMB 12,650,866 in the previous year[7] - The total loans decreased to RMB 455,250,000 in 2023 from RMB 677,700,000 in 2022, representing a reduction of approximately 33%[35] Segment Performance - The segment performance showed a profit of RMB 405.526 million from the Fragrance and Food Ingredients segment, while the Tobacco Raw Materials segment generated a profit of RMB 90.768 million[16] - The Fragrance and Food Ingredients segment accounted for the largest share of total revenue, generating RMB 1,484.628 million[16] - The sales revenue of the flavor and food ingredients business was approximately RMB 1.464 billion, down 22.0% from RMB 1.877 billion in 2022, accounting for 44.3% of total revenue[44] - The sales revenue from the tobacco raw materials business was approximately RMB 465 million, a year-on-year increase of 2.3%, accounting for about 14.0% of the group's total revenue[49] - The sales revenue from the fragrance raw materials business decreased by 32.4% to approximately RMB 625 million, accounting for about 18.9% of the group's total revenue[52] - The seasoning business reported sales revenue of approximately RMB 754 million, a 31.6% increase from RMB 573 million in 2022, accounting for 22.8% of total group revenue[60] Expenses - The total cost of sales, selling and marketing expenses, and administrative expenses for the year ended December 31, 2023, was RMB 2,996,149,000, down from RMB 3,121,785,000 in 2022[19] - The company incurred a total depreciation expense of RMB 210.998 million and amortization expenses of RMB 106.599 million during the reporting period[16] - The company's income tax expense for the year ended December 31, 2023, was RMB 125,442,000, a decrease from RMB 180,840,000 in 2022[22] - The group's administrative expenses for the year were RMB 830,866,000, a slight increase of 0.6% from RMB 825,959,000 in the previous year[70] - Sales and marketing expenses were RMB 326,809,000, a decrease of 5.1% from RMB 344,405,000, with the ratio to total revenue increasing to approximately 9.9%[69] Research and Development - Research and development expenses for the year ended December 31, 2023, were RMB 253,196,000, slightly down from RMB 266,233,000 in 2022[19] - The group obtained 12 patents related to flavoring and food ingredients, showcasing its R&D capabilities in specialized fields[61] Corporate Governance and Legal Matters - The company has not fully complied with corporate governance codes due to the impact of the chairman's legal issues, affecting the execution of certain responsibilities[94] - The company has adopted the standard code of conduct for securities trading by directors, ensuring compliance with the relevant regulations[95] - The company is monitoring ongoing legal matters involving its executives and will seek necessary legal advice as needed[93] - The company has received notifications regarding the lifting of house arrest for its chairman, allowing her to resume normal work[89] Future Plans and Strategies - The company plans to continue evaluating the impact of new accounting standards and revisions, with no significant effects anticipated on future reporting periods[14] - The group plans to establish a factory in Indonesia to enhance the convenience of selling products in the Southeast Asian market[45] - The group is focusing on consolidating its domestic market while expanding into overseas markets to broaden its business coverage[38] - The company plans to focus on high-margin, stable-return projects and continue lean production to improve operational efficiency and business performance in the upcoming year[64]

智通财经APP讯，华宝国际(00336)发布公告，该公司附属华宝股份(300741.SZ)预计截至2023年12月31 日止年度取得归母净利润3亿-4.4亿元(人民币，下同)，相比上年同期归母净利润7.25亿元同比减少 39.3%-58.62%。 公告称，2023年度，由于华宝股份产品下游市场需求变化、客户自主调香等因素的多重影响，华宝股份 产品结构产生变化，营业收入及毛利率水平下降，导致归属于华宝股份股东的净利润下降。 ...

Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 1,535,704, a decrease of 16.9% from RMB 1,847,152 in the same period of 2022[11]. - Gross profit decreased by 26.9% to RMB 706,732, down from RMB 967,029 year-on-year[11]. - Operating profit increased significantly to RMB 260,740, compared to an operating loss of RMB 141,776 in the previous year, marking a 283.9% improvement[11]. - Profit for the period was RMB 200,353, a turnaround from a loss of RMB 233,031, representing a 186.0% increase[11]. - Adjusted profit attributable to equity holders of the Company was RMB 168,917, down 43.8% from RMB 300,800 in the prior year[11]. - Basic and diluted earnings per share improved to RMB 4.77, compared to a loss of RMB 9.71 in the same period last year[11]. - The gross profit margin decreased to 46.0%, down 6.4 percentage points from 52.4% in 1H 2022[25]. - Adjusted operating profit was approximately RMB276 million, representing a year-on-year decrease of 41.7% from RMB473 million in 1H 2022[27]. - Profit attributable to equity holders was approximately RMB154 million, a significant improvement from a loss of approximately RMB314 million in 1H 2022[25]. Market Trends - The tobacco industry in China saw a GDP growth of 5.5% year-on-year in the first half of 2023, exceeding the government's target of 5%[13]. - The company noted a cautious consumer spending trend due to the lingering effects of the pandemic and a decline in overseas market demand[13]. - In the first half of 2023, China's GDP grew by 5.5% year-on-year, exceeding the government's target of 5% for the entire year[14]. - The revenue of the catering industry reached RMB 2,432.9 billion in the first half of 2023, representing a year-on-year increase of 21.4%[24]. - The condiment industry is experiencing increased demand due to the recovery of the catering industry, prompting investments in product development and marketing[23]. Operational Efficiency - The Group implemented a "Lean Production" program to reduce operating costs and improve production efficiency across all business segments[15]. - The Group's digital transformation efforts have led to more subsidiaries inputting procurement, production, and sales data into the SAP ERP system, enhancing data analysis capabilities[70]. - The Group has been recognized with the "SAP Global Innovation Award" for its digital transformation initiatives[71]. - The Group is optimizing its supply chain and reducing operating costs to mitigate the impact of the global economic downturn on its operations[76]. Investment and Development - The cumulative amount dedicated for the Huabao TechInno Project was approximately RMB7.5463 million, representing an investment progress of 1.68%[39]. - The cumulative amount for the Huabao Digital Project was approximately RMB19.0878 million, with an investment progress of 31.81%[39]. - The balance of unused IPO proceeds amounted to approximately RMB1,648 million as of 30 June 2023[39]. - The Group is actively developing overseas markets, including Malaysia, Thailand, and Indonesia, to enhance revenue sources[33]. Research and Development - The R&D investment during the reporting period was approximately RMB 116 million, representing 7.6% of revenue, an increase of 1.6 percentage points compared to the same period last year[59]. - The Group's investment in innovative tobacco product R&D led to the application of 35 patents, consolidating its competitiveness in the field of innovative tobacco products[61]. - The Group launched a new product, "Chinese Chef's Bone Broth," aimed at diversifying the product mix and enhancing the efficiency and quality of dishes for chefs[54]. Employee and Management - As of June 30, 2023, the Group employed a total of 4,003 employees, an increase from 3,875 as of December 31, 2022[65]. - The Group has implemented targeted training programs to enhance employees' problem-solving skills and support business development[66]. - The Group emphasized sustainable development goals and organized training to raise employee awareness on ESG matters[15]. Financial Position - As of June 30, 2023, the net current asset value of the Group was RMB6,980,704,000, slightly up from RMB6,944,129,000 as of December 31, 2022[148]. - The total bank borrowings amounted to RMB466,850,000 as of June 30, 2023, down from RMB677,700,000 as of December 31, 2022[150]. - The Group's debt ratio decreased to 3.7% as of June 30, 2023, from 5.4% as of December 31, 2022[150]. - The average trade receivables turnover period increased to 102 days for the six months ended June 30, 2023, compared to 89 days for the last financial year[155]. Shareholder Information - Ms. CHU Lam Yiu holds 2,293,408,900 ordinary shares, representing 71.00% of the issued share capital of the Company[170]. - The total number of shares available for issue under the 2016 Share Option Scheme is 310,665,796 shares, approximately 9.62% of the issued shares as of the report date[174]. - The Share Award Scheme aims to recognize and motivate contributions from participants, enhancing the Group's long-term business objectives[186].