Key Points - As of June 10, 147 stocks reached their 52-week highs, with Rongtai Group (01172), Shide Global (00487), and Nanshun (Hong Kong) (00411) leading the high rate at 90.48%, 75.24%, and 56.25% respectively [1] - The highest closing prices for the top three stocks were 0.055, 0.144, and 12.980 respectively, with their peak prices reaching 0.080, 0.184, and 17.000 [1] - Other notable stocks that reached new highs include China Rare Earth (00769) at 24.64%, China Silver Group (00815) at 16.67%, and 51 Credit Card (02051) at 16.28% [1] - The report also highlights a list of stocks that reached their 52-week lows, with the lowest being Cornerstone Financial (08112) at -13.51% [4] - The stock market shows a mix of performance, with some stocks experiencing significant gains while others are declining [4][5]

Financial Performance - The Group recorded a revenue increase of 1% to HK$2,681 million for the first half of FY2024/25[7] - Profit for the period increased by 46% to HK$188 million, supported by prudent cost management[7] - Revenue for the six months ended December 31, 2024, increased to HK$2,680,504, representing a growth of 0.8% compared to HK$2,659,166 in 2023[47] - Gross profit rose to HK$633,670, up 8.8% from HK$582,299 in the previous year[47] - Total comprehensive income for the period was HK$174,554, compared to HK$160,822 in 2023, indicating an increase of 8.5%[51] - The profit for the period increased to HK$188,185, a significant increase of 46.1% from HK$128,873 in 2023[51] - Basic and diluted earnings per share improved to HK$0.80, compared to HK$0.55 in the same period last year, reflecting a growth of 45.5%[47] - Reportable segment profit from operations for the six months ended December 31, 2024, was HK$248,785,000, an increase of 45.5% compared to HK$170,809,000 in 2023[91] - Consolidated profit before taxation for the same period was HK$233,811,000, up 47.7% from HK$158,185,000 in 2023[91] Segment Performance - The Food segment's revenue declined by 1% to HK$2,212 million, while operating profit increased by 54% to HK$194 million[13] - The Home Care segment's revenue grew by 10% to HK$469 million, with operating profit rising by 23% to HK$54 million[20] - Revenue from external customers in the Food segment was HK$2,211,834, while the Home Care segment generated HK$468,670, contributing to the total revenue of HK$2,680,504[87] - The reportable segment profit from operations for the Food segment was HK$194,360,000 and for the Home Care segment was HK$54,425,000, totaling HK$248,785,000 for the six months ended December 31, 2024[87] Cash and Liquidity - Cash balance as of 31 December 2024 was HK$1,896 million, an increase of 11% compared to the previous financial year end[8] - The group had a cash balance of HK$1,896 million as of December 31, 2024, up from HK$1,706 million on June 30, 2024[31] - Cash and cash equivalents at December 31, 2024, amounted to HK$1,445,907,000, up from HK$799,189,000 at the end of 2023, marking an increase of 81.2%[63] - The Group has banking facilities available amounting to HK$583 million as of December 31, 2024[31] Cost Management and Efficiency - Gross profit margin improved by 1.7% to 23.6%, driven by favorable trends in wheat and oil prices, sales mix optimization, and production cost efficiency[7] - The company reported a decrease in selling and distribution expenses to HK$315,357, down from HK$351,095, a reduction of 10.2%[47] - The group is focusing on cost efficiencies and supply chain optimization to navigate a challenging global economic outlook for 2025[27] - Strategic product and distribution initiatives in the Home Care segment have contributed to improved underlying profitability despite competitive pressures[20] Capital Expenditure and Investments - The group invested HK$33 million in capital expenditure for plant equipment during the six months ended December 31, 2024, compared to HK$26 million in the same period of 2023[40] - The Group acquired property, plant, and equipment at a cost of HK$10,052,000 during the six months ended December 31, 2024, down from HK$20,030,000 in 2023[123][124] - Additions to right-of-use assets amounted to HK$11,942,000, significantly higher than HK$3,870,000 in the previous year, indicating increased capitalized lease payments[122][126] - The company had capital expenditure authorized and contracted for amounting to HK$26,634,000, compared to HK$9,319,000 as of June 30, 2024[166] Future Outlook and Strategy - The group plans to continue developing new product categories for the remainder of the financial year to enhance market presence[23] - The Group is focusing on enhancing its premium product offerings and expanding market presence beyond the Greater Bay Area[19] - A new home care plant in Conghua, Guangdong, is expected to commence operations in FY2026/27 to scale up production capacity and R&D capabilities[26] - The group maintains a cautious optimism regarding future performance amidst subdued consumer confidence in the region[29] Shareholder Information - An interim dividend of HK$0.15 per share was declared, amounting to approximately HK$37 million, compared to HK$0.13 per share and HK$32 million in the previous year[12] - The Group's issued share capital remained stable at HK$672,777,000 with 243,354,000 ordinary shares as of both 31 December 2024 and 30 June 2024[142] - The weighted average number of ordinary shares in issue during the interim period was 234,739,000, slightly down from 234,898,000 in 2023[118][119] - As of December 31, 2024, Dr. WHANG Sun Tze holds a total of 27,543,069 shares in the company, representing approximately 11.32% of the total shares issued[186] Taxation and Regulatory Compliance - Current tax for Hong Kong profits increased to HK$6,739,000 in 2024 from HK$4,575,000 in 2023, representing a growth of 47.4%[99] - Current tax outside Hong Kong surged to HK$35,840,000 in 2024, compared to HK$16,257,000 in 2023, marking a significant increase of 120.5%[99] - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period, ensuring consistency in financial reporting[74] - The Group's financial report is unaudited, and the information provided is based on the same accounting policies adopted in the previous financial year[74]

Financial Performance - Revenue for the six months ended December 31, 2024, increased by 1% to HKD 2,681 million compared to HKD 2,659 million in the previous year[3] - Gross profit improved by 9% to HKD 634 million, with a gross margin of 23.6%, up 1.7% due to favorable trends in wheat and edible oil prices[5] - Profit for the period surged by 46% to HKD 188 million, with basic earnings per share rising by 45% to HKD 0.80[3] - The group reported revenue of HKD 2,680,504,000 for the six months ended December 31, 2024, representing a slight increase of 0.8% compared to HKD 2,659,166,000 for the same period in 2023[19] - Gross profit for the same period was HKD 633,670,000, up 8.8% from HKD 582,299,000 in 2023[19] - Operating profit increased to HKD 233,974,000, compared to HKD 158,316,000 in the previous year, reflecting a growth of 47.7%[19] - Net profit for the period was HKD 188,185,000, a significant increase of 46.1% from HKD 128,873,000 in 2023[21] - Basic and diluted earnings per share rose to HKD 0.80, up from HKD 0.55 in the previous year, marking a 45.5% increase[19] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.15 per share, totaling approximately HKD 37 million, compared to HKD 0.13 per share in the previous year[6] - The interim dividend declared was HKD 0.15 per share, an increase from HKD 0.13 per share in 2023, totaling HKD 35,208,000 compared to HKD 30,527,000 in the previous year, marking a rise of 15.5%[44] Segment Performance - The food division's revenue decreased by 1% to HKD 2,212 million, while operating profit increased by 54% to HKD 194 million[7] - The home care division's revenue grew by 10% to HKD 469 million, with operating profit rising by 23% to HKD 54 million[10] - Revenue from external customers in the food segment was HKD 2,211,834,000, while the home care segment generated HKD 468,670,000, contributing to a total segment revenue of HKD 2,680,504,000 for 2024[34] - The operating profit for the reporting segments totaled HKD 248,785,000, an increase of 45.6% compared to HKD 170,809,000 in 2023[36] Cash and Assets - Cash balance as of December 31, 2024, was HKD 1,896 million, an increase of 11% from the previous fiscal year-end[5] - As of December 31, 2024, the group's cash balance was HKD 1,896,000,000, an increase from HKD 1,706,000,000 as of June 30, 2024, with approximately 61% in RMB, 27% in HKD, and 11% in USD[14] - Total assets less current liabilities increased to HKD 3,046,393,000 from HKD 2,928,402,000 as of June 30, 2024[23] - Total assets for the reportable segments were HKD 2,832,561,000 as of December 31, 2024, down from HKD 2,907,285,000 in June 2024[34] Liabilities and Financial Position - The group maintained a strong current ratio and financial position, ensuring sufficient resources for daily operations and capital expenditures[14] - The group’s total liabilities for the reportable segments were HKD 708,454,000 as of December 31, 2024, compared to HKD 641,776,000 in June 2024, indicating an increase of 10.3%[34] - The company’s total liabilities as of December 31, 2024, were HKD 673,309,000, compared to HKD 581,018,000 as of June 30, 2024, indicating an increase of 15.9%[55] Operational Efficiency - Inventory turnover period improved to 64 days from 67 days as of June 30, 2024, while trade receivables turnover period decreased to 22 days from 24 days[14] - The company aims to enhance cost efficiency and optimize supply chains while focusing on high-end strategies to maintain profit margins amid uncertain global economic conditions[12] - The company plans to continue product innovation and market expansion to ensure business resilience and sustained success[12] Corporate Governance - The board of directors includes independent non-executive directors Mr. Guo Linghai and Mr. Huang Jiachun, as well as executive director Mr. Qiu Zhaoxiang, who serves as the CEO[61] - The company is committed to enhancing corporate governance and transparency through its board composition[61]

Financial Performance - Revenue for 2024 decreased to HK$4,838 million, down 5.5% from HK$5,119 million in 2023[9] - Gross profit margin improved to 21% in 2024, compared to 17% in 2023[9] - Profit for the year increased significantly to HK$201 million in 2024, up from HK$85 million in 2023[9] - Total assets rose to HK$3,546 million in 2024, an increase from HK$3,425 million in 2023[10] - Total equity increased to HK$2,904 million in 2024, compared to HK$2,786 million in 2023[10] - Basic earnings per share (EPS) for 2024 was HK$2.40, up from HK$1.51 in 2023[8] - Profit before taxation for 2024 was HK$245 million, a significant increase from HK$90 million in 2023[9] - The Group's revenue declined by 5% to HK$4,838 million, while profit increased by 135% to HK$201 million during FY23/24[13] - The Group reported a 5% year-on-year decline in revenue to HK$4,838 million for the financial year ended 30 June 2024, primarily due to a lower average Renminbi exchange rate[27] - Profit for the year increased by 135% to HK$201 million, reflecting improved performance across various segments[49] Dividends - The company declared a dividend per share (DPS) of HK$0.55 for 2024, compared to HK$0.48 in 2023[8] - The total dividend for the year is HK$0.40 per share, comprising a final dividend of HK$0.27 and an interim dividend of HK$0.13[14] - The board proposed a final dividend of HKD 0.27 per share, totaling approximately HKD 65,706,000, alongside an interim dividend of HKD 0.13 per share, resulting in a total dividend of HKD 0.40 per share for the year[172] - The total dividend for the year will amount to HK$0.40 per share, compared to HK$0.30 per share in 2023[167] - The proposed final dividend is subject to shareholder approval at the annual general meeting scheduled for November 8, 2024[173] Business Segments Performance - The Food division showed significant profit improvement, aided by lower raw material costs of wheat and oil, while maintaining a focus on premium segments[18] - The Home Care division achieved stable improvement in both top- and bottom-line performance, supported by geographic expansion and new product categories[19] - Revenue of the Food segment dropped by 7% to HK$4,030 million, with a 4% decline when excluding the impact of Renminbi depreciation[31] - Operating profit of the Food segment surged 263% to HK$190 million compared to the previous financial year[31] - Home Care Division revenue grew by 2% to HK$810 million, with operating profit increasing by 14% to HK$83 million despite softer demand in core markets[40] Strategic Initiatives - The company aims to enhance its market presence and product offerings in the coming years[6] - The management is prioritizing targeted growth in premium segments, cost control, and risk management in response to geopolitical tensions and commodity price fluctuations[21] - The Group aims to focus on premium market growth, cost control, and risk management in a complex market environment[25] - The Group plans to enhance its IT and R&D capabilities to develop breakthrough products and improve margins while reducing exposure to commodity fluctuations[47] - The Group aims to expand its geographical reach and deepen its presence in core markets despite ongoing geopolitical tensions impacting the global economy[46] Governance and Board Composition - Mr. Kwek Leng Hai has been the Chairman of the Company since October 2006 and has extensive experience in finance, investment, manufacturing, and real estate[72] - Mr. Chiu Chao Hsiang, James was appointed as the Chief Executive Officer and Executive Director of the Company in June 2024, bringing over 28 years of experience in the food and beverage sector[73] - The company has a strong board with members holding qualifications from the Hong Kong Institute of Certified Public Accountants and the Chartered Professional Accountants of Canada[76] - The board's diverse expertise includes legal, financial, and operational backgrounds, supporting comprehensive decision-making[75] - The Board composition includes independent non-executive directors, ensuring objectivity and accountability in its operations[75] Risk Management and Compliance - The company emphasizes compliance and internal audit services, reflecting its commitment to governance and risk management[77] - The Group's risk management framework includes monitoring the implementation of action plans and ensuring the risk register is up-to-date[148] - The Company has established procedures for handling inside information, ensuring confidentiality and compliance with the Securities and Futures Ordinance[149] - The Group has implemented a zero-tolerance policy towards fraud, corruption, and unethical actions, ensuring integrity and transparency in operations[121] - The Board is responsible for ensuring proper accounting records are maintained and for preparing the financial statements[145] Sustainability and Innovation - Sustainability initiatives include reducing waste through innovative packaging solutions and adhering to ethical production practices[20] - The Group's commitment to innovation is highlighted by its participation in various industry exhibitions and the introduction of new products[70] - The Group is committed to integrating environmental, social, and governance (ESG) considerations into business operations and strategic decision-making[87] - The BARMC oversees the Company's ESG matters, including monitoring ESG reporting progress and reviewing related risks[142] Employee and Workforce Management - The Group had 1,631 employees as of June 30, 2024, with a remuneration policy that includes annual increments and performance bonuses[60] - The Group aims to enhance the quality of human resources as a core aspect of management excellence[83] - The Group values open communication and collaboration among employees to foster growth and achieve shared objectives[84] Shareholder Communication - The Company maintains a website to provide shareholders with the latest news, financial reports, and corporate governance information[154] - The Group encourages two-way communication with shareholders and provides opportunities for them to seek clarification on the Group's performance[154] - The Board reviewed the effectiveness of the shareholder communication policy during the year ended June 30, 2024[156]

Financial Performance - The company's revenue for the fiscal year ending June 30, 2024, decreased by 5% to HKD 4,838 million, primarily due to a lower average exchange rate of the RMB[2] - Gross profit increased by 16% to HKD 1,013 million, with a gross margin improvement of 3.8 percentage points to 20.9% driven by favorable costs of wheat and edible oil[2] - Net profit surged by 135% to HKD 201 million, with basic earnings per share rising by 136% to HKD 0.85[1] - The food segment's revenue decreased by 7% to HKD 4,030 million, but operating profit increased by 263% to HKD 190 million[5] - The home care segment's revenue grew by 2% to HKD 810 million, with operating profit increasing by 14% to HKD 83 million[7] - The group reported revenue of HKD 4,837,585,000 for the year ending June 30, 2024, compared to HKD 5,118,938,000 in 2023, resulting in a gross profit of HKD 1,012,898,000, up from HKD 875,973,000[15] - The net profit for the year was HKD 200,599,000, significantly higher than HKD 85,349,000 in 2023, resulting in basic and diluted earnings per share of HKD 0.85 compared to HKD 0.36[15] - Total revenue from external customers reached HKD 4,837,585,000 in 2024, a decrease of 5.5% compared to HKD 5,118,938,000 in 2023[26] Dividends - The total proposed dividend for the fiscal year is HKD 0.40 per share, an increase of 33% compared to HKD 0.30 in the previous year[3] - The interim dividend declared per ordinary share increased to HKD 0.13 in 2024 from HKD 0.10 in 2023, representing a 30% increase[33] - The proposed final dividend per ordinary share increased to HKD 0.27 in 2024 from HKD 0.20 in 2023, indicating a 35% increase[33] Cash and Assets - As of June 30, 2024, the group's cash balance was HKD 1,706,000,000, an increase from HKD 1,457,000,000 in 2023, with approximately 69% in RMB, 27% in HKD, and 4% in other currencies[9] - The total assets less current liabilities amounted to HKD 2,928,402,000 in 2024, compared to HKD 2,802,954,000 in 2023[17] - Total assets for the group amounted to HKD 2,907,285,000, with the food segment holding HKD 2,525,838,000 and the home care segment holding HKD 381,447,000[23] - The group’s total liabilities were reported at HKD 641,776,000, with the food segment liabilities at HKD 502,800,000 and home care segment liabilities at HKD 138,976,000[23] Operational Efficiency - The inventory turnover period increased to 67 days in 2024 from 62 days in 2023, while the trade receivables turnover period increased to 24 days from 21 days[10] - The group invested HKD 40,000,000 in capital expenditures for purchasing plant and equipment, down from HKD 49,000,000 in 2023[13] - The group has a strong current ratio and financial position, ensuring sufficient resources for daily operations and capital expenditures[10] - The group plans to enhance its sales team through increased recruitment and training programs to improve productivity and execution of market entry strategies[8] Market Strategy - The company focused on high-end market development and improved channel management to address challenges from consumer behavior changes and economic recovery imbalances[4] - New product launches, such as the higher-end "Axe Brand Hyaluronic Acid Dishwashing Liquid," performed well in e-commerce channels, supporting market penetration[7] - The company aims to expand its product range and geographic reach in mainland China, particularly in regions outside Guangdong and Fujian provinces[7] Compliance and Accounting - The group has adopted revised Hong Kong Financial Reporting Standards, including HKAS 12 regarding income tax, which introduces temporary mandatory exemptions for deferred tax accounting related to international tax reforms[20] - The group has not applied any new standards or interpretations that have not yet come into effect during the current accounting period[20] - The group has made adjustments to its accounting policies regarding long service payments in light of new guidelines from the Hong Kong Institute of Certified Public Accountants[21] - The group has reported a significant focus on compliance with the new accounting guidelines and the impact of these changes on financial reporting[21] Financial Risks - The group faced currency risks primarily from receivables, payables, and cash balances denominated in foreign currencies, which are monitored to maintain acceptable levels of foreign exchange risk[11] Employee Costs - The total employee costs increased to HKD 469,634,000 in 2024 from HKD 455,984,000 in 2023, an increase of 3.0%[28] Other Financial Metrics - The pre-tax profit before tax increased to HKD 244,557,000 in 2024 from HKD 90,571,000 in 2023, marking a significant increase of 170.5%[24] - Interest income from financial assets measured at amortized cost rose to HKD 22,018,000 in 2024, up from HKD 14,081,000 in 2023, reflecting a growth of 56.4%[24] - The financing costs for lease liabilities rose to HKD 254,000 in 2024 from HKD 208,000 in 2023, an increase of 22.1%[28] - The net exchange gain from foreign currency transactions was HKD 823,000 in 2024, compared to a loss of HKD 1,941,000 in 2023[24] - The total company and corporate expenses increased to HKD 56,062,000 in 2024 from HKD 51,422,000 in 2023, reflecting a rise of 9.3%[24] Shareholder Actions - The company purchased 174,000 shares at a total cost of HKD 1,444,000 during the year[41] - The company has complied with all applicable rules of the Hong Kong Stock Exchange Corporate Governance Code during the reporting period[42] - The audit and risk management committee reviewed the accounting principles and practices adopted by the company for the year ended June 30, 2024[43] - The company’s auditor confirmed that the financial statements for the year ended June 30, 2024, are consistent with the figures presented in the preliminary announcement[44]

Revenue Performance - The Group recorded a revenue decline of 2% to HK$2,659 million compared to the previous corresponding period, primarily due to a lower average exchange rate for Renminbi[31]. - Excluding the currency impact, revenue would have improved marginally by 1%, mainly driven by sales volume growth[31]. - The Group's revenue decreased by 2% year-on-year to HK$2,659 million, primarily due to the depreciation of the Renminbi; excluding this impact, revenue slightly increased by 1% driven by sales volume growth[33]. - The Food segment's revenue dropped by 3% to HK$2,232 million; however, stripping off the Renminbi depreciation impact, revenue increased by 1%[51]. - Revenue from contracts with customers for the six months ended December 31, 2023, was HK$2,659,166,000, down from HK$2,715,046,000 in 2022, indicating a decrease of about 2.06%[162]. - Revenue from external customers for the six months ended December 31, 2023, was HK$2,659,166,000, a slight decrease from HK$2,715,046,000 in 2022, reflecting a decline of approximately 2%[195]. Profitability - The Group's profit for the period surged by 205% to HK$129 million[31]. - Operating profit for the Food segment surged by 408% to HK$126 million compared to the previous corresponding period[51]. - Profit for the period rose to HK$128,873,000, up 205.5% from HK$42,207,000 in the prior year[126]. - Total comprehensive income for the period was HK$160,822,000, compared to a loss of HK$47,029,000 in the previous year[126]. - The reportable segment profit from operations for the same period was HK$170,809,000, compared to HK$65,545,000 in 2022, indicating a significant increase of 160%[195]. Gross Profit and Margins - Gross profit margin increased by 5.4 percentage points to 21.9%, attributed to favorable wheat and oil costs, as well as an improved sales mix in the Flour and Home Care businesses[31]. - Gross profit increased to HK$582,299,000, representing a significant increase of 29.6% from HK$449,056,000 in the previous year[124]. - The group reported a gross profit margin of approximately 21.9%, up from 16.5% in the previous year[124]. Cash and Liquidity - The cash balance as of December 31, 2023, was HK$1,544 million, a 6% increase from the previous financial year-end[32]. - The group has sufficient resources to meet daily operations and capital expenditure commitments, supported by a strong liquidity ratio[115]. - Banking facilities available to group companies not yet drawn amounted to HK$590 million as of December 31, 2023, compared to HK$553 million on June 30, 2023[86]. - Cash and cash equivalents at December 31, 2023, increased to HK$799,189,000 from HK$659,949,000 in 2022, representing an increase of approximately 20.96%[165]. Strategic Initiatives - The Company implemented strategic pricing methods to balance sales volume and profit amid ongoing price competition in lower-priced markets[20]. - The management team focused on optimizing procurement and production resources to enhance profitability and support new growth initiatives[21]. - The Company plans to strengthen synergies between its two main revenue sources to drive growth in products, sales channels, and customer conversion[20]. - The group plans to allocate more resources to new e-commerce channels and deepen existing channel strategies to enhance market influence and positioning[49]. - The group aims to develop differentiating new products that align with emerging consumer trends to bolster sustainable growth[64]. Market and Segment Performance - Home Care Division revenue grew by 2% to HK$427 million, with operating profit increasing by 9% to HK$44 million[21]. - The Oil division regained momentum in volume growth, supported by effective sales and marketing plans and the launch of a new lower price corn oil product[53]. - The edible oil segment has regained sales growth momentum despite significant pricing pressure, with effective sales and marketing plans during the holiday period contributing to strong sales of the "刀嘜" brand[60]. - The home care segment reported a revenue increase of 2% to HK$427 million and an operating profit increase of 9% to HK$44 million, despite soft market demand and adverse foreign currency effects[65]. Inventory and Receivables - The inventory turnover days improved to 60 days as of December 31, 2023, down from 62 days on June 30, 2023, while trade receivable turnover days increased to 22 days from 21 days[89]. - Trade and other receivables increased to HK$442,038,000 from HK$347,364,000, representing a significant growth of about 27.2%[142]. Employee and Compensation - The Group employed 1,629 employees as of December 31, 2023, with a compensation policy that includes annual salary increments and performance bonuses[137]. - Staff costs for the six months ended December 31, 2023, totaled HK$237,190,000, up from HK$227,650,000 in 2022, reflecting an increase of 1%[195]. Financial Position - As of December 31, 2023, the total equity of the Group was HKD 2,900,444,000, an increase from HKD 2,835,244,000 as of December 31, 2022[129]. - The company's net assets reached HK$2,900,444,000, compared to HK$2,786,313,000, indicating an increase of approximately 4.1%[142]. - Current liabilities rose to HK$672,193,000 from HK$622,024,000, marking an increase of about 8.1%[142]. Accounting and Compliance - The Group's financial report is prepared in accordance with the same accounting policies as the previous year, with specific amendments noted for the current period[147]. - The company has adopted new accounting policies related to income taxes and long service payment liabilities, which may impact future financial reporting[147][152]. - The company has not applied any new standards or interpretations that are not yet effective for the current accounting period, ensuring compliance with HKAS 34[166].

Revenue and Profitability - Total revenue for the six months ended December 31, 2023, was HKD 2,659,166, a slight increase from HKD 2,715,046 in the same period of 2022, representing a decrease of approximately 2.1%[1] - Operating profit for the same period was HKD 170,809, significantly up from HKD 65,545 in 2022, marking an increase of approximately 160.1%[1] - The company reported a total comprehensive income before tax of HKD 158,185 for the six months ended December 31, 2023, compared to HKD 50,698 in the same period of 2022, indicating an increase of approximately 211.5%[18] - Profit for the period surged by 205% to HKD 129 million compared to HKD 42 million in the previous year[39] - The group's profit for the period surged by 205% to HKD 129,000,000[43] Earnings Per Share and Dividends - The company reported a basic earnings per share of HKD 0.55 for the six months ended December 31, 2023, compared to HKD 0.18 in the same period of 2022, indicating an increase of approximately 205.6%[8] - Basic earnings per share rose to HKD 0.55, a 206% increase from HKD 0.18 in 2022[39] - The company declared an interim dividend of HKD 0.20 per share for the previous fiscal year, down from HKD 0.33 per share in 2022, representing a decrease of approximately 39.4%[6] - The interim dividend declared for the six months ended December 31, 2023, is HKD 0.13 per share, totaling approximately HKD 32,000,000, compared to HKD 0.10 per share and approximately HKD 24,000,000 for the same period last year[63] Assets and Liabilities - The reported segment assets as of December 31, 2023, totaled HKD 3,009,929, compared to HKD 2,793,780 as of June 30, 2023, reflecting an increase of approximately 7.8%[1] - The total liabilities as of December 31, 2023, were HKD 697,624, up from HKD 632,272 as of June 30, 2023, representing an increase of approximately 10.3%[1] - Total equity as of December 31, 2023, was HKD 2,900 million, reflecting a 4% increase from HKD 2,786 million[39] - The net assets of the group increased to HKD 2,900,444,000 as of December 31, 2023, compared to HKD 2,786,313,000 as of June 30, 2023[58] Cash Flow and Financing - The group had a cash balance of HKD 1,544,000,000 as of December 31, 2023, with approximately 70% in RMB, 28% in HKD, and 2% in other currencies[49] - As of December 31, 2023, the group had unutilized bank financing of HKD 590,000,000, an increase from HKD 553,000,000 as of June 30, 2023[70] - As of December 31, 2023, the group's cash balance was HKD 1,544,000,000, an increase of 6% compared to the end of the previous fiscal year[63] Operational Performance - The company reported a significant increase in sales volume across all segments, attributed to optimized product mix and competitive pricing strategies[40] - The management team effectively managed procurement to optimize overall raw material costs, enhancing supply stability and profitability for the first half of the fiscal year[40] - The food segment's revenue declined by 3% to HKD 2,232,000,000; excluding the impact of RMB depreciation, revenue increased by 1%[45] - Operating profit for the food segment skyrocketed by 408% year-on-year to HKD 126,000,000[45] - The edible oil division regained sales growth momentum, supported by effective sales and marketing plans during the holiday season, and the introduction of a lower-priced corn oil product[65] - The home care division's revenue grew by 2% to HKD 427,000,000, with operating profit increasing by 9% to HKD 44,000,000 despite soft market demand[66] Cost Management - Interest expenses on lease liabilities increased to HKD 131,000 from HKD 106,000 year-on-year[21] - Employee costs rose to HKD 237,190,000 from HKD 227,650,000, driven by wages and benefits[21] - Gross profit margin significantly increased by 5.4 percentage points to 21.9%, attributed to favorable wheat and edible oil costs, as well as improved sales mix in the flour and home care businesses[43] Inventory and Turnover - The inventory turnover period was 60 days as of December 31, 2023, improved from 62 days as of June 30, 2023[71] Strategic Initiatives - The group plans to allocate more resources to new e-commerce channels and deepen existing channel strategies to enhance market influence and positioning[48] - The group plans to enhance synergies between its flour and specialty oils businesses to drive growth in products, sales channels, and customer conversion[64] Foreign Exchange and Accounting Policies - The group continues to monitor foreign exchange risks related to receivables, payables, and cash balances denominated in foreign currencies[72] - The group continues to apply the same accounting policies as in the previous financial year, with no new standards or interpretations adopted during the current accounting period[94]

Financial Performance - Revenue for the fiscal year ended June 30, 2023, decreased by 16% to HKD 5,119 million, primarily due to a decline in sales volume in the food segment and depreciation of the RMB [3]. - Net profit for the year decreased by 67% to HKD 85 million, driven by reduced sales and profits in the company's largest food segment [3]. - The food segment's revenue declined by 18% to HKD 4,326 million, with operating profit dropping 81% to HKD 52 million due to rising raw material costs and decreased sales [20]. - The group reported a net profit of HKD 85 million for the year, down from HKD 257 million in the previous year [35]. - The group’s total comprehensive income before tax was HKD 90,571,000, down from HKD 285,431,000 in the previous year, reflecting a decrease of approximately 68.3% [79]. - The operating profit for the reportable segments was HKD 125,351,000, down from HKD 329,949,000 in the previous year, indicating a decline of about 62.0% [79]. - Basic earnings per share for the year were HKD 85,349,000, a significant drop of 67% from HKD 257,260,000 in the previous year [109]. Equity and Assets - The total equity as of June 30, 2023, was HKD 2,786 million, a decrease of 6% from HKD 2,959 million in the previous year [2]. - The total equity of the group decreased from HKD 2,959,124,000 in 2022 to HKD 2,786,313,000 in 2023, a decline of about 5.8% [68]. - The group reported a net current asset value of HKD 1,919,437,000, down from HKD 1,997,999,000 in the previous year, indicating a decrease of approximately 3.9% [68]. - The group’s total assets amounted to HKD 2,793,780,000, while total liabilities were HKD 632,272,000, reflecting a liability-to-asset ratio of approximately 22.7% [78]. Dividends - The proposed final dividend for the fiscal year is HKD 0.20 per share, totaling approximately HKD 48,671,000, down from HKD 0.33 per share in the previous year [4]. - The group declared an interim dividend of HKD 0.10 per share, down from HKD 0.15 per share in the previous year, totaling HKD 23,495,000 compared to HKD 35,316,000 previously [89]. - The proposed final dividend distribution date is December 5, 2023 [119]. Cost Management and Strategy - The company is focusing on cost control and procurement discipline to mitigate risks associated with geopolitical tensions and economic uncertainties [16]. - The company plans to enhance marketing strategies cautiously to improve brand value in core markets, particularly for its "刀嘜" brand in Guangdong and Hong Kong [23]. - The group aims to enhance R&D and digital capabilities to achieve long-term sustainable growth and create shareholder value [37]. - The company is restructuring its sales team to accelerate sales recovery and create synergies between its flour and specialty oils businesses [12]. Operational Metrics - The inventory turnover period improved to 62 days in 2023 from 65 days in 2022, while trade receivables turnover period increased to 21 days from 18 days [39]. - Home care division revenue decreased by 4% to HKD 793 million, while operating profit increased by 33% to HKD 73 million [24]. - Employee costs, including wages and salaries, decreased from HKD 435,783,000 in 2022 to HKD 418,543,000 in 2023, a reduction of about 3.9% [61]. - Trade and other payables as of June 30, 2023, totaled HKD 589,238,000, a decrease of 21% from HKD 745,825,000 in 2022 [96]. - Trade receivables within three months amounted to HKD 299,742,000, down from HKD 310,011,000 in the previous year, indicating a decline of 4% [113]. Government and Regulatory Matters - The group anticipates the implementation of a subsidy program by the government to assist employers after the cancellation of the offsetting mechanism for long service payments [53]. - The company received government subsidies of HKD 1,327,000 during the year, a decrease of 51% compared to HKD 2,700,800 in 2022 [102]. - The group has assessed the impact of new accounting guidelines and decided to change accounting policies accordingly, with full implementation expected by December 31, 2023 [55]. Miscellaneous - The company plans to hold its annual general meeting on November 13, 2023 [100]. - The company will suspend the registration of share transfers from November 20, 2023, to November 21, 2023 [119]. - The deadline for share transfer registration is set for November 17, 2023, at 4:30 PM [119]. - The group has not entered into any foreign currency forward contracts for the year ending June 30, 2023, indicating a shift in risk management strategy [63]. - The group reported interest income from financial assets measured at amortized cost of HKD 14,081,000, significantly up from HKD 1,890,000 in the previous year [79]. - The group experienced an exchange loss of HKD 1,941,000, compared to a loss of HKD 1,852,000 in the previous year, indicating a slight increase in foreign exchange impact [79]. - The total tax provision for the year was HKD 13,146,000, an increase of 47% from HKD 27,825,000 in the previous year [104]. - The company did not repurchase any of its listed securities during the year [97]. - The board adopted a corporate governance code in compliance with the Hong Kong Stock Exchange rules [98].

Financial Performance - The food segment's revenue decreased by 18% to HK$2,295 million, while operating profit declined by 86% to HK$25 million[19]. - The Group's revenue declined by 16% to HK$2,715 million compared to the same period last year, primarily due to a downturn in sales volume in the Flour business[39]. - The Group's profit for the period decreased by 76% to HK$42 million[39]. - Revenue for the six months ended December 31, 2022, was HK$2,715,046, a decrease of 15.8% compared to HK$3,226,931 for the same period in 2021[88]. - Gross profit for the same period was HK$449,056, down 28.4% from HK$626,225 in 2021[88]. - Profit before taxation for the period was HK$42,207,000, compared to HK$173,034,000 in the same period last year, reflecting a significant decline[149]. - Total comprehensive income for the period was a loss of HK$47,029, compared to a gain of HK$208,624 in the prior year[89]. - Basic and diluted earnings per share decreased to HK$0.18 from HK$0.73, reflecting a 75.7% drop[88]. - The company reported a consolidated profit before taxation of HK$50,698, significantly lower than HK$188,157 in the previous year, representing a decline of about 73.0%[111]. Market Conditions - The Edible Oil business encountered a tough environment with historically high oil costs and reduced market demand due to COVID-19 disruptions[25]. - The adverse conditions from COVID-19 outbreaks and inflation pressures significantly impacted revenue growth and profitability during the review period[12]. - The revenue decline was primarily driven by unfavorable foreign currency translation impacts on Mainland China revenues, which constitute the bulk of the business[29]. - The company faced challenges due to significant fluctuations in palm oil prices, impacting profitability and inventory valuation[76]. Operational Strategies - The Group implemented a competitive pricing strategy to maintain market share and inventory turns amid intense price drops[24]. - Operational efficiencies were enhanced by streamlining production and logistics networks in Mainland China to better position the Group for future opportunities[29]. - The Group is focused on enhancing business resilience by adapting to changing consumer behaviors and market dynamics, aiming for sustainable growth in the future[56]. - The Group plans to gradually roll out the proprietary adjustable cap design across the full product range in Hong Kong and Mainland China post-Chinese New Year[25]. Cash Flow and Liquidity - As of December 31, 2022, the Group's cash balance was HK$1,387 million, a decrease from HK$1,541 million as of June 30, 2022[33]. - Cash and cash equivalents at December 31, 2022, were HK$659,949, down from HK$1,124,076 at the end of the previous year, indicating a decrease of approximately 41.2%[118]. - Net cash used in operating activities was HK$14,907, a stark contrast to the net cash generated of HK$157,268 in the previous year[118]. - Net current assets were HK$1,910,657, down from HK$1,997,999, reflecting tighter liquidity[91]. Dividends and Shareholder Returns - The Group declared an interim dividend of HK$0.10 per share, totaling approximately HK$24 million for the six months ended December 31, 2022[44]. - The interim dividend declared was HK$0.10 per share, down from HK$0.15 per share in the previous year[147]. Employee and Workforce Management - As of December 31, 2022, the Group had 1,661 employees, with annual increment and year-end performance bonus mechanisms incorporated in the remuneration policy to retain and motivate individuals[61]. - Staff costs totaled HK$227,650,000, a decrease of 2.3% from HK$233,739,000 in 2021[137]. - The Group's total salaries, wages, and other benefits amounted to HK$209,175,000, a decrease of 2.5% from HK$214,775,000 in 2021[137]. Investment and Capital Expenditure - The Group invested a total of HK$34 million in capital expenditure for the acquisition of plant equipment during the six months ended December 31, 2022, compared to HK$62 million in the same period of 2021, representing a decrease of 45.16%[61]. - The Group acquired property, plant, and equipment at a cost of HK$30,851,000, significantly lower than HK$67,065,000 in the previous year[170]. Currency and Foreign Exchange - The Group faces currency risk primarily through sales and purchases, which are monitored to ensure foreign exchange exposure remains at an acceptable level[61]. - The Group's operations are primarily denominated in Renminbi, Hong Kong dollars, and Macau Patacas, indicating a diverse currency exposure[59].

Financial Performance - Revenue for 2022 was HK$6,107 million, an increase from HK$5,761 million in 2021, representing a growth of 6%[7] - Profit for the year decreased to HK$257 million in 2022 from HK$358 million in 2021, a decline of 28%[7] - Gross profit margin (GP%) for 2022 was 19%, down from 22% in 2021[7] - Basic earnings per share (EPS) for 2022 was HK$1.44, compared to HK$1.34 in 2021, indicating an increase of 7.5%[6] - Profit before taxation for 2022 was HK$285 million, down from HK$421 million in 2021, a decrease of 32%[7] - The basic and diluted earnings per share were both HK$1.09, down from HK$1.51 in 2021[13] - Profit for the year decreased by 28% to HK$257 million, primarily due to the decline in gross profit margin, although mitigated by effective control over operating costs[61] Assets and Liabilities - Total assets increased to HK$3,801 million in 2022, compared to HK$3,676 million in 2021, reflecting a growth of 3.4%[8] - Total liabilities increased to HK$842 million in 2022 from HK$795 million in 2021, an increase of 5.9%[8] - Equity attributable to shareholders rose to HK$2,959 million in 2022, up from HK$2,881 million in 2021, an increase of 2.7%[8] - The equity-debt ratio remained at 100:0, indicating no net debt[10] Dividends - The company declared a dividend per share (DPS) of HK$0.50 for 2022, consistent with the previous year[6] - The total dividend for the year remained stable at HK$0.48 per share, with a total payout of HK$116,810,000[14] Business Strategy and Operations - The company plans to focus on expanding its product offerings and enhancing market presence in the coming year[4] - The Group's flour business is focused on strategic expansion to enhance its position as a bakery solutions provider[18] - Cost control measures and disciplined price increases were implemented to mitigate high-cost pressures in various business segments[19] - The homecare business maintained its market leader position in the dishwashing detergent segment, supported by new product introductions and online shopping demand[22] - The Group inaugurated a new Specialty Fats factory in Jintan, aiming to leverage existing product portfolios and customer bases[18] - The Group's revenue increased by 6% to HK$6,107 million for the financial year ended 30 June 2022, driven by volume growth, price adjustments, and sales mix improvement[29] Market Conditions - Market competition intensified in the core Guangdong market, leading to expedited regional expansion into less-developed cities[43] - The company has begun lifting prices of core products across major channels to mitigate against an inflationary environment[51] - The outlook remains cautious due to continued volatility in the business environment, but there is cautious optimism for stabilization and improvement in the medium term[52] Sustainability and ESG Initiatives - The Group established an ESG task force to manage sustainability practices and climate-related risks[23] - The Group's ESG performance is guided by a formalized governance structure established in November 2020, overseen by the Board of Directors[106] - The Group aims to enhance its ESG performance by regularly communicating with stakeholders and understanding their expectations[120] - The Group's commitment to sustainability is reflected in its structured approach to risk management, ensuring that ESG issues are integrated into daily operations and decision-making[112] - The Group established a Climate Change Policy to commit to mitigating and adapting to the impacts of climate change[133] Environmental Impact - The Group's greenhouse gas emissions amounted to 41,398.18 tonnes of CO2 equivalent, with an overall intensity of 0.05 tCO2e per tonne of production volume[149] - The Group's energy consumption during the reporting period was 66,819,191.40 kWh, with an overall energy intensity of 77.79 kWh per tonne of production volume[149] - The Group aims to reduce waste and improve resource efficiency, embedding environmental care into its culture[136] - The Group's operational sites have installed on-site wastewater treatment facilities for advanced sewage treatments[170] Waste Management - The Group has implemented a "Waste Management Procedure" to facilitate better classification of wastes for storage and disposal[182] - The Group aims to achieve a 100% diversion rate for non-hazardous waste by 2025[188] - Over 76.3% of non-hazardous wastes were recycled during the reporting period, achieving 100% recycling rates for scrap metal, waste paper, and waste plastic[180] Water Consumption - The Group's total water consumption during the reporting period was 190,290 m³, with a water intensity of 0.21 m³ per tonne of production volume[173] - The home care product plant treated and reused 40% of its wastewater for flushing purposes[173] - The Group aims to reduce water intensity in its manufacturing plants by 3% by 2025, with a target of 0.17 m³ per tonne of production volume[178]