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]

Community Engagement and Social Responsibility - The Group donated a total of 2,000 liters of peanut oil to needy families in Zhanjiang during November 2022[12] - The Group contributed RMB 50,000 to poverty alleviation programs in Jintan District for the second consecutive year[21] - The Group has been awarded the "Caring Company Award" for sixteen consecutive years by the Hong Kong Council of Social Service, reflecting its long-term commitment to community investment[18] - The Group's volunteer service team has been actively involved in charitable activities, including job opportunities for people with intellectual disabilities[18] - The Group participated in "Love Teeth Day," raising funds to provide professional dental care to the needy, including the elderly and individuals with intellectual disabilities[19] - The Group has established a collaboration with the Hong Chi Association to support recycling initiatives and provide job training for individuals with intellectual disabilities[18] - The Group's charitable contributions during the reporting period demonstrate its commitment to social responsibility[12] - The Group's volunteer activities are part of its strategy to enhance community relationships and support various charitable causes[12] - The Group received the "Caring Company Award" for the 16th consecutive year, reflecting its commitment to community care[92] - Community investment initiatives increased by 20%, totaling HKD 50 million, reflecting the company's commitment to social responsibility[165] Environmental Management - The Group's environmental management policies include compliance with laws regarding emissions and waste management[24] - The Group aims to promote waste reduction and recycling initiatives within the community[18] - The company has established policies for the efficient use of resources, including energy, water, and raw materials[25] - Total energy consumption was reported in thousands of kWh, with specific intensity metrics per unit of production volume[25] - Water consumption metrics were provided, including total usage and intensity per unit of production[25] - The company has set energy use efficiency targets and outlined steps taken to achieve them[25] - All water used by the company was obtained with the necessary permits, with no issues related to sourcing fit-for-purpose water[25] - The company reported total packaging material used for finished products in tonnes, with applicable metrics per unit produced[25] - The company has policies in place to minimize significant impacts on the environment and natural resources[28] - The company has identified significant climate-related issues and has implemented actions to manage them[28] - The company promotes environmentally preferable products and services when selecting suppliers, with monitoring practices in place[156] - The company has a strategy for managing environmental and social risks within its supply chain[156] - The Group's environmental, social, and governance (ESG) initiatives are focused on sustainable development and compliance with new climate-related disclosure requirements set to take effect in 2024[121] Human Resources and Employee Welfare - Employee turnover rates were analyzed by gender, age group, and geographical region[29] - The percentage of employees trained by gender and employee category was reported, along with average training hours completed per employee[36] - The Group emphasizes the importance of human resources as its most valuable asset, aiming to create a diverse and engaging work environment[38] - The Group complies with all applicable labor laws in Hong Kong and the PRC, including the Employment Ordinance and Minimum Wage Ordinance[38] - Equal opportunities are provided to employees in recruitment, training, and compensation, without discrimination based on gender, ethnicity, or other prohibited factors[39] - A standardized appraisal system is in place to evaluate employee performance and determine promotion and salary increments[39] - The Group has implemented strict measures to ensure compliance with occupational health and safety laws, including regular health checks and safety training[39] - Competitive remuneration packages are regularly reviewed, incorporating annual salary increments and performance bonuses[47] - The Group has established a training and development system to enhance employees' professional and management skills[52] - Special arrangements were made during the COVID-19 pandemic to protect employee health, including providing hand sanitizers and conducting temperature checks[42] - The Group organizes team-building events to foster employee engagement and satisfaction[51] - The Group's commitment to employee welfare includes a focus on health and safety as a core concern[39] - The Group has developed an interactive e-learning platform for employee training, allowing access to skills and company information via various electronic devices[53] Corporate Governance and Compliance - The Group maintains a zero-tolerance policy towards corruption, ensuring all employees participate in anti-corruption training[59] - The Group's procurement policies include guidelines for managing supply chains during tendering and contract periods[81] - The Group has established a whistleblowing policy to provide reporting channels for all stakeholders[56] - The Group's Code of Conduct emphasizes commitment to good business ethics and compliance with applicable laws and regulations, with no material non-compliance identified during the Reporting Period[79] - The Company has complied with the HKEX Code throughout the year ended June 30, 2023[175] - The Board held four meetings and one general meeting during the year[180] - The Board comprises more than one-third of Independent Non-Executive Directors (INEDs) and both the Audit and Risk Management Committee and the Board Remuneration Committee are chaired by INEDs[188] - The Board Nomination Committee reviews the composition of the Board annually to ensure compliance with independence requirements under the Listing Rules[188] - The Company established the Board Remuneration Committee on July 1, 2005, with specific written terms of reference to recommend remuneration policies for directors and senior management[190] - The Board monitors compliance with legal and regulatory requirements and has delegated relevant functions to board committees and management[184] - The majority of members in each board committee are INEDs, ensuring independent oversight of the Company's affairs[190] - The Company emphasizes a culture of openness and debate, encouraging directors to voice their concerns for independent input[188] - Continuous efforts are made to enhance the performance of the Board and the Group's risk management and internal control systems[200] Financial Performance and Growth - The Group experienced strong sales growth in the home care division despite a challenging operating environment, enhancing profitability through improved supply chain efficiency and cost reduction efforts[95] - The Group plans to invest in talent and projects to enhance R&D and digital capabilities, aiming for long-term sustainable growth and shareholder value creation[100] - The Group's revenue, gross profit margin, and profit for the year are key performance indicators (KPIs) used to evaluate and improve business performance[125] - The Group's home care division is developing new products in the premium market segment, supported by marketing investments to boost the "Axe Brand"[95] - The company reported a significant increase in revenue, achieving a total of HKD 1.2 billion, representing a year-on-year growth of 15%[167] - User data showed an increase in active users by 20%, reaching a total of 500,000 users by the end of the reporting period[167] - The company provided guidance for the next fiscal year, projecting a revenue growth of 10% to 12%[167] - New product launches contributed to 30% of total sales, indicating strong market acceptance[167] - The company is investing HKD 100 million in research and development for new technologies aimed at enhancing product efficiency[167] - Market expansion efforts have led to a 25% increase in market share in the Asia-Pacific region[167] - The company completed a strategic acquisition of a local competitor, which is expected to enhance its product portfolio and customer base[167] Supplier and Procurement Management - The Group has implemented a Supplier Relationship Management (SRM) system to digitalize procurement management, enhancing supplier lifecycle management and performance monitoring[83] - The Group adheres to a just-in-time inventory model, sourcing from local suppliers to reduce transportation costs and ensure high-quality products[62] - The Group's procurement management involves stringent supplier selection criteria, ensuring compliance with food safety standards and environmental policies[94] - The company has implemented policies for consumer data protection and privacy, including monitoring and compliance measures[139] - The number of suppliers is categorized by geographical region, reflecting the company's supply chain management practices[156] - The company is committed to observing and protecting intellectual property rights through established practices[160]

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]

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]