Financial Performance - The Group achieved a revenue growth of 6% to HK$2,791 million for the six months ended 31 December 2021, supported by increased sales volume and higher bran selling prices[11]. - Profit for the period decreased by 27% to HK$173 million due to pressured profit margins and the absence of government COVID-19 subsidies[11]. - The food segment's operating profit declined by 36% to HK$175 million despite a 6% increase in revenue[14]. - Gross profit for the same period was HK$626,225,000, down 14.4% from HK$731,677,000 in 2020[42]. - Total comprehensive income for the period was HK$208,624,000, down 45.9% from HK$385,185,000 in the same period of 2020[44]. - Reportable segment profit from operations decreased to HK$209,429,000 for the six months ended December 31, 2021, down 35.4% from HK$324,825,000 in 2020[71]. - Consolidated profit before taxation was HK$188,157,000, a decline of 36.0% compared to HK$294,097,000 in the previous year[72]. Revenue and Growth - For the six months ended December 31, 2021, the company reported revenue of HK$3,226,931,000, an increase of 5.7% from HK$3,051,295,000 in the same period of 2020[42]. - Revenue from contracts with customers for the six months ended December 31, 2021, was HK$3,226,931,000, an increase from HK$3,051,295,000 in the same period of 2020, representing a growth of approximately 5.75%[66]. - Revenue from external customers in the Food segment was HK$2,791,465,000, while the Home Care segment generated HK$435,466,000, contributing to the total revenue[68]. Cost and Profit Margins - Gross profit margin declined by 4.6 percentage points to 19.4%, significantly impacted by rising costs of wheat, edible oil, and detergent materials[11]. - The Edible Oil business faced challenges from unprecedented raw material cost increases and channel disruptions, prompting several rounds of price increases[21]. - The Group has implemented price increases and cost control strategies in response to unprecedented raw material cost surges in the edible oil business[23]. - The Home Care segment's revenue increased by 2% to HK$435 million, while operating profit declined by 33% to HK$34 million, reflecting high raw material costs and intense market competition[25][28]. Cash and Liquidity - As of 31 December 2021, the Group's cash balance was HK$1,481 million, with investments in fixed income government bonds and equity securities totaling HK$189 million[12]. - As of December 31, 2021, the Group had a cash balance of HK$1,481 million, with 72% in Renminbi, indicating strong liquidity[31]. - Cash and cash equivalents at December 31, 2021, amounted to HK$1,124,076,000, down from HK$1,145,484,000 at the end of 2020, indicating a decrease of approximately 2%[51]. - Net cash generated from operating activities for the six months ended December 31, 2021, was HK$157,268,000, compared to HK$153,149,000 for the same period in 2020, reflecting a slight increase of 2%[51]. Investments and Capital Expenditures - The company invested HK$62 million in capital expenditures during the six months ended December 31, 2021, up from HK$54 million in the previous year[36]. - The Group acquired property, plant, and equipment at a cost of HK$67,065,000 during the six months ended December 31, 2021, slightly down from HK$68,486,000 in 2020[91]. - The Group had capital commitments of HK$23,393,000 authorized and contracted as of December 31, 2021, down from HK$46,988,000 as of June 30, 2021, reflecting a decrease of approximately 50%[125]. Employee and Shareholder Information - The Group employs a share option scheme to retain and motivate its 1,687 employees as of December 31, 2021[37]. - The weighted average number of ordinary shares in issue during the interim period was 236,110,000, down from 236,734,000 in 2020[87]. - The Group purchased its own ordinary shares for a total of HK$12,736,000 during the six months ended December 31, 2021, compared to HK$9,530,000 in the same period of 2020[108]. - The interim dividend declared per ordinary share was HK$0.15, unchanged from the previous year, with total dividends payable amounting to HK$35,327,000 compared to HK$35,510,000 in 2020[84]. Market and Operational Challenges - The Group anticipates an upsurge in raw material costs and fluctuating market consumption patterns, maintaining a cautious but optimistic outlook[27][29]. - The Food segment's revenue showed steady growth, but gross margin adjusted due to rising wheat prices, with challenges from COVID-19 lockdowns and natural disasters impacting manufacturing and restaurant clients[22]. - The Group has adopted interactive online communications to strengthen customer relationships amid changing market dynamics due to COVID-19[19]. Financial Position and Assets - Current assets totaled HK$2,781,444,000, slightly up from HK$2,758,360,000 in the previous period[48]. - The company reported a net current asset position of HK$2,007,490,000, an increase from HK$1,980,576,000 as of June 30, 2021[48]. - The Group's total liabilities as of December 31, 2021, were HK$716,357,000, a slight decrease from HK$726,111,000 as of June 30, 2021[101]. Shareholder Interests and Corporate Governance - The directors of the Company held a total of 27,543,069 shares, representing approximately 11.32% of the total number of ordinary shares in issue as of December 31, 2021[131]. - GuoLine Capital Assets Limited and associated entities held 156,114,659 shares, representing approximately 64.15% of the company's total shares[146]. - The interests of substantial shareholders included 140,008,659 ordinary shares held by GuoLine International Limited and 6,781,000 ordinary shares held by Richly Choice Development (PTC) Limited[147].

2 0 2 1 A N N U A L R E P O R T 年 報 得 南順(香港)有限公司 Lam Soon (Hong Kong) Limited A Member of the Hong Leong Group 豐隆集團成員 (Stock Code 股份代號：411) 匠 心｜精 研｜携手｜創 新 DEVOTED TO EXCELLENCE 11/2 34 Er L 1 中| | 传播音画 | GOLDEN STATUE 金像牌 金值牌 日精研 金像牌 国国 精研日式麵包粉 was: 25kg 金像牌 傳統法式粉系列 精研 川景 STATUE 金像牌 CONTENTS 目錄 2 Corporate Information 公司資料 4 Financial Highlights 財務摘要 6 Chairman's Statement 董事會主席報告書 9 Review of Operations 業務回顧 22 Corporate Highlights 集團紀要 28 Environmental, Social and Governance Report 環境、社會及管治報告書 81 Board of ...

Financial Performance - The Group achieved a revenue growth of 7% and a net profit increase of 27% to HK$238 million for the six months ended 31 December 2020[4][9]. - For the six months ended December 31, 2020, the company reported revenue of HK$3,051,295, an increase of 6.67% from HK$2,860,591 in the same period of 2019[36]. - Gross profit for the same period was HK$731,677, representing a gross margin of approximately 24% compared to HK$657,575 in 2019[36]. - Profit for the period increased to HK$238,233, up 27.16% from HK$187,325 in the previous year[38]. - Total comprehensive income for the period was HK$385,185, significantly higher than HK$160,069 in 2019, indicating strong performance[38]. - The Group's reportable segment profit from operations was HK$324,825 for the six months ended December 31, 2020, compared to HK$255,994 in the same period of 2019, reflecting an increase of approximately 26.9%[62]. - Consolidated profit before taxation reached HK$294,097,000, an increase of 28.5% from HK$229,033,000 in the previous year[65]. Revenue Segmentation - The Food segment's revenue rose by 6% to HK$2,626 million, with operating profit increasing by 27% to HK$274 million[12][15]. - Revenue from external customers in the Food segment was HK$2,626,427, while the Home Care segment generated HK$424,868, contributing to the total revenue of HK$3,051,295[62]. - Revenue from contracts with customers in Mainland China was HK$2,676,103, which accounted for a significant portion of the total revenue, compared to HK$2,468,454 in the previous year[60]. Cash Flow and Financial Position - Cash balance increased by 7% to HK$1,631 million, with HK$29 million invested in fixed income government bonds in Mainland China for higher returns[10][13]. - The Group's cash balance as of December 31, 2020, was HK$1,631 million, up from HK$1,530 million on June 30, 2020, primarily due to net cash generated from operating activities[25]. - Net cash generated from operating activities was HK$153,149,000, a decrease from HK$179,849,000 in the previous year[46]. - The company reported a net cash used in investing activities of HK$360,264,000 and net cash used in financing activities of HK$85,266,000[46]. - Cash and cash equivalents at December 31, 2020, were HK$1,145,484,000, down from HK$1,377,996,000 at the end of 2019[46]. - The company’s total equity increased to HK$2,779,091,000 as of December 31, 2020, from HK$2,421,510,000 a year earlier[42]. Dividends - An interim dividend of HK$0.15 per share was declared, totaling approximately HK$37 million, an increase from HK$0.14 per share totaling HK$34 million in the previous year[11][14]. - The total final dividend for the previous financial year approved and paid during the interim period was HK$0.31 per share, compared to HK$0.30 in 2019, indicating a 3.3% increase[82]. Operational Highlights - The specialty fats facility in Jintan, China, commenced construction in September 2020 and is expected to be operational by the end of FY2020/21, despite slight delays due to COVID-19[6][8]. - The Edible Oil business faced challenges from escalating material costs but launched a new premium product and a major brand uplift to capture market momentum[16]. - Increased interactive online communication with customers was implemented to support customer demands during movement controls and travel restrictions[16]. - The Group's agility allowed it to adapt effectively to the new normal, regaining sales momentum despite macroeconomic challenges[5][8]. Employee and Compensation - The company employed 1,702 employees as of December 31, 2020, with a compensation policy that includes annual salary increments and performance bonuses[35]. - Staff costs amounted to HK$215,395,000, up from HK$197,036,000 in 2019, reflecting an increase of 9.2%[67]. Capital Expenditure - The Group invested HK$54 million in capital expenditure during the six months ended December 31, 2020, compared to HK$47 million in the same period in 2019[31]. - The company acquired property, plant, and equipment at a cost of HK$68,486,000 during the six months ended December 31, 2020, compared to HK$46,345,000 in 2019, representing a 47.8% increase[87]. - Capital expenditure authorized and contracted for amounted to HK$89,274,000 as of 31 December 2020, up from HK$52,760,000 as of 30 June 2020, representing a 69.3% increase[113]. Shareholder Information - The Group's issued share capital remained at 243,354,000 shares, with a total value of HK$672,777,000 as of December 31, 2020[96]. - The Company purchased 756,000 shares at a total consideration of HK$9,530,000 during the period[149]. - The interests of substantial shareholders included 140,008,659 ordinary shares held by GuoLine International Limited, a wholly-owned subsidiary of Hong Leong Company[139]. Governance and Compliance - The company complied with the HKEx Code during the reporting period, except for non-executive directors not being appointed for a specific term[142]. - The Company has adopted corporate governance practices in line with the Hong Kong Stock Exchange's requirements[145]. - The unaudited interim results for the six months ended 31 December 2020 have been reviewed by the Board Audit and Risk Management Committee[117].

Financial Performance - Revenue for the year ended June 30, 2020, was HK$5,119 million, a slight decrease from HK$5,316 million in 2019[10] - Profit attributable to shareholders for 2020 was HK$317 million, down from HK$340 million in 2019, representing a decrease of approximately 6.76%[10] - Gross profit margin improved to 23% in 2020, compared to 22% in 2019[10] - Total assets increased to HK$3,215 million in 2020, up from HK$3,062 million in 2019, reflecting a growth of 4.99%[11] - Total liabilities were HK$738 million in 2020, slightly up from HK$727 million in 2019[11] - Equity attributable to shareholders rose to HK$2,477 million in 2020, compared to HK$2,324 million in 2019, indicating an increase of 6.58%[11] - Profit before taxation for 2020 was HK$400 million, compared to HK$398 million in 2019, showing a marginal increase[10] - The Group recorded revenue of HK$5,119 million, a slight decrease of 3.7% compared to the previous year, and net profit of HK$317 million, down 6.8%[14][22] Dividends - The company declared a dividend per share of HK$0.50 for 2020, consistent with the previous year[9] - A total dividend of HK$0.45 per share was declared, marking the fifth consecutive year of growth in dividend per share[17][19] Market Strategy and Outlook - The company is focusing on expanding its market presence and enhancing product offerings in the edible oil sector[8] - Future outlook includes continued investment in new product development and potential market expansion strategies[8] - The Group is investing in innovative product development and expanding online and offline distribution channels across China[18] - The Group plans to expand the distribution of Manuka Health honey products in the PRC through cross-border e-commerce platforms, aiming for new growth sources in the upcoming financial year[31] Segment Performance - The Food Segment's revenue decreased by 5.0% to HK$4,375 million, with profits from operations slipping 6.7% to HK$368 million, primarily due to reduced flour volume[15][25] - The Home Care Segment achieved a revenue growth of 4.5%, benefiting from favorable material costs[15] - The Edible Oil segment achieved strong revenue growth despite rising raw material costs, with the Knife Oil brand reaching a new high market value share of 6.3% in the competitive Guangzhou market[30] - In Hong Kong, the Knife Oil brand maintained a leading position in the dishwashing detergent category with a combined market share of 39.0% in value and 51.0% in volume[36] - The Home Care Segment's revenue grew by 4.5% to HK$744,000,000, and operating profit increased by 40.1% to HK$84,000,000, driven by distributor consolidation and strong e-commerce momentum[36] Financial Health - The Group's cash balance stood at HK$1,530 million as of June 30, 2020, indicating sound financial health[14] - As of June 30, 2020, the Group had a cash balance of HK$1,530 million, an increase from HK$1,318 million in 2019, mainly due to net cash generated from operating activities[50] - Approximately 76% of the Group's cash balance is denominated in Renminbi, 17% in Hong Kong dollars, and 7% in United States dollars[50] - The Group's management believes that its strong liquidity and financial position will provide sufficient resources to fund daily operations and capital expenditure commitments[52] Operational Developments - A new state-of-the-art flour factory in Jiangsu Province is operational, and a specialty fats facility is expected to be operational in the second half of FY20/21[18] - The Group's specialty fats factory in Jintan is on track to be operational in Q4 FY20/21, expected to enhance business growth through complementary products[30] - The Group is diversifying its wheat sourcing to reduce dependence on U.S., Canada, and Australia wheat, which has resulted in cost savings[26] Employee and Workforce Management - As of June 30, 2020, the Group had 1,735 employees, with an annual salary increment and year-end performance bonus mechanism in place to retain talent and incentivize contributions[65] - The workforce is predominantly located in Mainland China (87%), followed by Hong Kong (12%) and Macau (1%)[168] - The Group provides competitive remuneration and benefits, including year-end bonuses and health insurance, to attract and retain talent[162][163] - The Group has implemented special arrangements and precautionary measures to protect employee health during the COVID-19 pandemic, including flexible work arrangements and temperature checks[178] Sustainability and ESG Initiatives - The Group's sustainability mission emphasizes responsible business growth and positive community impact, integrating sustainability into its operations[76] - The Group has adopted an integrated four-pillar approach to manage ESG issues, focusing on environment, human capital, corporate governance, and social capital[88] - The Group's commitment to ESG matters is seen as a key factor for business success, integrating these issues into its overall business strategies[89] - The Group has implemented the ISO 14001 Environmental Management System across most operation sites to enhance energy efficiency and emission reduction targets[106] Environmental Performance - The Group aims to reduce waste and improve resource efficiency, embedding environmental awareness into its corporate culture[108] - The total energy consumed by the Group was 61,466,375 kWh, with an overall energy intensity of 74.18 kWh/tonnes of production volume during the Reporting Period[133] - The Group recycled over 80% of non-hazardous waste, with a 100% recycling rate for waste metals, waste paper, plastics, and sludge[132] - The Group has engaged qualified companies for the collection and handling of hazardous waste to prevent contamination of soil, air, and water resources[129] Compliance and Quality Assurance - All business operations of the Group possess ISO 9001 Quality Management System certification, ensuring adherence to quality standards[192] - The flour mills and edible oil plants are certified to ISO 22000 Food Safety Management System, demonstrating compliance with food safety standards[192] - The Group's quality assurance processes include testing raw materials and finished products against national and industrial standards[194] - The Group adheres to applicable laws and international standards on product safety and recalls, ensuring product quality and safety[192]

Financial Performance - The Group's interim net profit attributable to shareholders declined by 7% to HK$187.3 million, while revenue grew marginally to HK$2,861 million, and gross profit margin improved from 22.2% to 23%[11]. - The food segment's revenue was HK$2,488 million, remaining on par with the same period last year, while operating profit declined by 12% to HK$215 million[14]. - The home care segment's revenue remained flat at HK$372 million, but operating profit surged by 71% due to favorable material costs and price increases[21]. - Profit for the period decreased to HK$187,325,000 from HK$201,407,000 in 2018, representing a decline of about 7%[35]. - Total comprehensive income for the period was HK$160,069,000, an increase from HK$142,854,000 in 2018, marking a growth of approximately 12%[38]. - Consolidated profit before taxation for the six months ended December 31, 2019, was HK$229,033,000, down from HK$239,274,000 in 2018, reflecting a decrease of about 4.3%[98]. - The Group's profit attributable to equity shareholders for the interim period is HK$187,325,000, a decrease from HK$201,407,000 in 2018, reflecting a decline of approximately 7.4%[115]. Cash Flow and Financial Position - As of December 31, 2019, the Group's cash balance increased by 5% to HK$1,378 million, enabling capital investments to strengthen the supply chain for geographic and business expansions[12]. - The Group's cash balance as of December 31, 2019, was HK$1,378 million, an increase from HK$1,318 million on June 30, 2019, primarily due to net cash generated from operating activities[23][27]. - For the six months ended December 31, 2019, the net cash generated from operating activities was HK$179,849,000, a decrease from HK$290,332,000 in the same period of 2018[48]. - The total taxation expense for the six months ended December 31, 2019, is HK$41,708,000, compared to HK$37,867,000 in 2018, reflecting an increase of approximately 10.0%[5]. - The Group had unutilized banking facilities amounting to HK$600 million as of December 31, 2019, down from HK$721 million on June 30, 2019[23]. Capital Expenditure and Investments - Capital expenditure during the six months ended December 31, 2019, totaled HK$47 million, down from HK$73 million in the previous year[29]. - The Group plans to continue selective capital investments in the oil and flour businesses to support volumetric and geographic growth[21]. - The Group's capital expenditure authorized and contracted for amounted to HK$65,113,000, compared to HK$29,013,000 as of June 30, 2019[152]. Segment Performance - The edible oil business experienced healthy revenue growth but faced a reduction in gross margin due to higher raw material costs of corn and peanut oil[15]. - New product introductions in the oil segment, such as Supreme Corn and Supreme Peanut, contributed to revenue and market share growth, with strong year-on-year expansion in the online business[15]. - Reportable segment profit from operations decreased to HK$215,295,000 in 2019 from HK$244,017,000 in 2018, representing a decline of approximately 11.7%[96]. - Reportable segment revenue for the six months ended December 31, 2019, was HK$2,860,318,000, compared to HK$2,856,705,000 in 2018, indicating a marginal increase[98]. Dividend and Shareholder Information - The Board declared an interim dividend of HK$0.14 per share, totaling approximately HK$34 million, consistent with the previous year[13]. - The final dividend for the previous financial year approved during the interim period is HK$0.30 per ordinary share, an increase from HK$0.27 in 2018, totaling HK$71,077,000[114]. - The interim dividend declared is HK$0.14 per ordinary share, unchanged from 2018, with total dividends payable amounting to HK$33,227,000 for the interim period[111]. Accounting Standards and Policies - The Group has adopted HKFRS 16 on July 1, 2019, recognizing right-of-use assets equal to the remaining lease liabilities, with a weighted average incremental borrowing rate of 5.14%[73]. - The initial application of HKFRS 16 has resulted in the recognition of lease liabilities and corresponding right-of-use assets as of 1 July 2019[60]. - The adoption of HKFRS 16 did not have a material impact on the financial results for the six months ended December 31, 2019[84]. - The Group's accounting policies for lessee accounting now require capitalizing all leases, eliminating the previous classification into operating and finance leases[65]. Employee and Corporate Governance - The group had 1,732 employees as of December 31, 2019, with a compensation policy that includes annual salary increments and performance bonuses[33]. - The unaudited interim results for the six months ended December 31, 2019, have been reviewed by the Board Audit and Risk Management Committee, indicating a commitment to governance and oversight[164]. - The Company has adopted a Code of Corporate Governance Practices based on the HKEx Code, ensuring compliance during the reporting period[196]. Miscellaneous - The Group's strategic initiatives continue to lay the foundation for long-term growth despite the uncertain macroeconomic and political environment[6]. - The Group operates in two reportable segments: Home Care and Food, focusing on cleaning products and a range of food products respectively[87][90].

Financial Performance - Revenue for 2019 was HK$ 5,316 million, a slight decrease of 1.08% from HK$ 5,374 million in 2018[10] - Profit attributable to shareholders for 2019 was HK$ 340 million, an increase of 4.29% compared to HK$ 326 million in 2018[10] - Gross profit margin improved to 22% in 2019, up from 21% in 2018[10] - Profit before taxation for 2019 was HK$ 398 million, an increase from HK$ 391 million in 2018[10] - The Group's net profit attributable to shareholders increased by 4% to HK$340 million, while revenue decreased by 1% to HK$5,316 million[14] - The gross margin improved from 21.0% to 21.7% due to favorable raw material costs and an improved product/channel mix[14] - The Group's net profit margin improved by 0.3 percentage points year-on-year to 6.4% despite challenges from the economic environment and rising costs[23] - The group achieved a profit growth of 4% year-on-year, with net profit attributable to shareholders amounting to HK$340 million despite a 1% decline in revenue to HK$5,316 million[24] Dividends and Earnings - The company maintained a dividend per share of HK$ 0.45 for 2019, consistent with the previous year[9] - The total dividend for the year amounts to HK$0.44 per share, marking the fourth consecutive year of double-digit percentage growth in dividend per share[17] - The company reported a basic earnings per share of HK$ 1.60 for 2019, compared to HK$ 1.50 in 2018[9] Market and Product Development - The company is focusing on expanding its market presence in the domestic sector[3] - The company is committed to developing new products and technologies to enhance its offerings[3] - The company aims to explore potential mergers and acquisitions to drive growth[3] - The Group plans to continue investing in talent acquisition, new product development, and e-commerce channel development[19] - The Group plans to introduce new products outside of the dishwashing category, such as laundry care, to transform into a household cleaning company[37] - The Group aims to enhance brand awareness and penetrate further into the national market, particularly in the e-commerce channel[37] Operational Efficiency - The Group's cash balance as of June 30, 2019, was HK$1,318 million, representing a 13% improvement over the previous year[14] - The Group's sales volume increased by 2.6% for the year, but revenue decreased by 1% to HK$5,316 million, primarily due to Renminbi depreciation and rising wheat costs[42] - The Group's gross profit margin improved to 21.7%, up from 21.0% last year, due to favorable raw material costs and improved product mix[42] - The inventory turnover days were 59 days, up from 57 days in 2018, while trade receivable turnover days remained stable at 24 days[47] Environmental Sustainability - The Group has adopted the ISO 14001 Environmental Management System across major operation sites to enhance energy efficiency and emission reduction targets[89] - The Group's sustainability mission emphasizes creating value for stakeholders while balancing environmental and economic considerations[82] - The Group emitted 41,811 tonnes of carbon dioxide equivalent (tCO2eq) during the Reporting Period, with an overall emission intensity of 0.05 tCO2e per tonne of production volume[95] - The Group ensures compliance with the Discharge Limits of Water Pollutants (DB44/26-2001) and the national Integrated Wastewater Discharge Standard (GB 8978-1996)[93] - The Group has established regulations on water management to regulate water consumption practices and promote conservation[119] Employee Engagement and Workforce - The Group had 1,681 employees as of June 30, 2019, with a remuneration policy that includes annual increments and performance bonuses[57] - The workforce is composed of 56% male and 44% female employees[133] - The Group organized various employee engagement activities during the Reporting Period, including the Lam Soon Annual Conference and team-building activities, to enhance employees' sense of belonging[136] - Training needs are identified through appraisal sessions, with courses provided to enhance productivity, employee satisfaction, and career development, covering areas such as occupational health and safety, customer service, and financial budgeting[139] Corporate Governance - The Company has adopted a Code of Corporate Governance Practices based on the HKEx Code, which is reviewed and updated regularly to align with best practices[197] - The Board reported compliance with the HKEx Code for the year ended June 30, 2019, with directors subject to retirement by rotation at least once every three years[198] - Non-executive directors are subject to retirement by rotation and re-election at annual general meetings, meeting the intent of the HKEx Code[199] - The Company adopted the Model Code for Securities Transactions by Directors, ensuring compliance among all directors throughout the year[200] Community Engagement - The Group actively participated in community activities, including sponsoring the Sowers Action Challenging 12 Hours Charity Marathon on October 21, 2018[172] - In January 2019, financial subsidies were provided to underprivileged students in Qingzhou, Shandong Province[175] - The Group maintained its strong tradition of supporting various charitable causes during the reporting period[171] - The Group continues to invest resources in community engagement despite the absence of formal policies[172]

Financial Performance - The Group's interim net profit attributable to shareholders increased by 8.2% from HK$186 million to HK$201 million[15]. - Revenue growth for the Food and Home Care segments was 1.7% year-on-year, rising from HK$2,808 million to HK$2,857 million, with a volume improvement of 4.6%[15]. - Gross profit margin increased from 21.6% to 22.2%, while net profit margin improved to 7%, up by 0.4 percentage points from the previous year[15]. - The Group's revenue for the six months ended 31 December 2018 was HK$2,856,886,000, representing an increase of 1.7% from HK$2,808,108,000 in 2017[40]. - Gross profit for the same period was HK$634,770,000, up 4.6% from HK$606,457,000 in 2017[40]. - Profit for the period increased to HK$201,407,000, a rise of 8.1% compared to HK$186,185,000 in 2017[40]. - Basic earnings per share for the period was HK$0.85, compared to HK$0.79 in the previous year, reflecting a growth of 7.6%[40]. - Reportable segment profit from operations for the same period was HK$267,833, up from HK$251,672 in 2017, indicating an increase of about 6.4%[78]. - The consolidated profit before taxation for the six months ended December 31, 2018, was HK$239,274, compared to HK$230,076 in 2017, showing a growth of about 4%[78]. Cash and Liquidity - The Group's cash balance as of December 31, 2018, was HK$1.29 billion, reflecting an increase of HK$129 million or 11% from six months prior[15]. - The group had a cash balance of HK$1,291 million as of December 31, 2018, up from HK$1,162 million on June 30, 2018, with 68% in RMB, 28% in HK$, and 4% in USD[29]. - For the six months ended December 31, 2018, net cash generated from operating activities was HK$290,332,000, a decrease from HK$353,412,000 in 2017[50]. - Cash and cash equivalents at December 31, 2018, were HK$1,280,646,000, an increase from HK$1,125,824,000 in 2017[50]. - The Group's net current assets increased to HK$1,550,863,000 from HK$1,493,582,000, showing improved liquidity[47]. Investments and Capital Expenditure - The Group invested HK$73 million in capital expenditure during the period, significantly higher than HK$35 million in 2017[36]. - The Group acquired property, plant, and equipment at a cost of HK$71,572,000 for the six months ended December 31, 2018, compared to HK$31,859,000 in 2017, representing an increase of 124%[97]. - As of December 31, 2018, the Group's capital expenditure authorized and contracted for amounted to HK$66,054,000, a decrease from HK$107,391,000 as of June 30, 2018[122]. Dividends - An interim dividend of HK$0.14 per share was declared, totaling approximately HK$34 million, compared to HK$0.13 per share totaling approximately HK$32 million last year[17]. - The interim dividend declared is HK$0.14 per share, totaling approximately HK$34 million, compared to HK$0.13 per share and HK$32 million for the same period last year[21]. - The interim dividend declared for 2018 was HK$0.14 per ordinary share, an increase from HK$0.13 per share in 2017, reflecting a growth of about 7.7%[88]. Segment Performance - The Food Segment recorded a revenue growth of 1% to HK$2,486 million, with an operating profit increase of 8.7% to HK$244 million[18]. - The food segment recorded a revenue growth of 1% to HK$2,486 million, with an operating profit increase of 8.7% to HK$244 million, excluding currency impact, the revenue growth was 3.9%[22]. - The flour core brands achieved a revenue growth of 7% to HK$371 million, with a volume growth of 5%, while the operating profit margin decreased by 1.4 percentage points to 6.4%[26]. - The food segment generated revenue of HK$2,486,157, while the home care segment contributed HK$370,548 for the six months ended December 31, 2018[72]. Financial Position - Total assets as of 31 December 2018 were HK$2,401,022,000, an increase from HK$2,189,710,000 as of 30 June 2018[47]. - Net assets rose to HK$2,243,473,000 from HK$2,170,185,000, indicating a solid financial position[47]. - As of December 31, 2018, total equity was HK$2,243,473,000, an increase from HK$2,082,131,000 in 2017[50]. Accounting Standards and Policies - The interim financial report is unaudited and prepared in accordance with HKAS 34, with the same accounting policies as the 2017/18 annual financial statements[54]. - The Group has adopted HKFRS 9, which impacts the classification of financial assets and measurement of credit losses, effective from July 1, 2018[61]. - The Group's revenue recognition framework has been updated to align with HKFRS 15, replacing previous standards[70]. - The Group's accounting policies have been updated to reflect changes in revenue recognition and credit loss measurement[70]. Taxation - Current tax for Hong Kong Profits Tax decreased to HK$1,936,000 in 2018 from HK$3,392,000 in 2017, a reduction of approximately 43%[84]. - Current tax outside Hong Kong decreased to HK$26,192,000 in 2018 from HK$30,015,000 in 2017, a decrease of about 13%[84]. - Total taxation for the six months ended December 31, 2018, was HK$37,867,000, down from HK$43,891,000 in 2017, representing a decline of approximately 14%[84]. Employee and Management - As of 31 December 2018, the Group had 1,658 employees, with performance bonuses and share options in place to motivate staff[37]. - Staff costs for the six months ended December 31, 2018, totaled HK$192,356, compared to HK$174,316 in 2017, representing an increase of approximately 10.4%[82]. Corporate Governance - The company has complied with the HKEx Code of Corporate Governance Practices during the reporting period[156]. - All directors confirmed compliance with the Model Code for Securities Transactions throughout the period[159].