Financial Performance - The company's revenue for the year 2024 increased by 6.9% to approximately RMB 1,802.6 million compared to RMB 1,686.2 million in 2023[16] - Operating profit (EBIT) decreased by 11.1% to approximately RMB 106.0 million, with an EBIT margin of 5.9% compared to 7.1% in 2023[29] - Profit attributable to the company's owners was approximately RMB 54.5 million, a decrease of 14.8% from RMB 63.9 million in the previous year[16] - The company's EBITDA for the year was approximately RMB 203.1 million, reflecting a decrease of 2.9% from RMB 209.1 million in 2023[16] - The gross profit margin for 2024 was 28.5%, down from 29.8% in 2023, representing a decline of 1.3 percentage points[16] - The company achieved a historical revenue high of approximately RMB 1.826 billion in 2024, representing a year-on-year increase of about RMB 116.4 million or 6.9%[45] - The gross profit increased by approximately RMB 10.3 million to about RMB 513.2 million, with a gross margin of 28.5%, down 1.3 percentage points from 29.8% in 2023 due to rising raw material costs[45] - The net profit after tax decreased by 21.0% to approximately RMB 48.3 million, with a net profit margin of 2.7%, down from 3.6% in 2023[48] Cash Flow and Investments - The net cash flow from operating activities reached approximately RMB 289.8 million, up from RMB 176.4 million in the previous year[29] - The company plans to continue investing in infrastructure and production networks to create long-term value for stakeholders[27] - The company plans to continue investing in talent and operational flexibility to capture growth opportunities in the market, particularly in light of China's economic recovery and increased consumer spending expected to drive sales in 2025[43] - The company is actively seeking acquisition opportunities to accelerate its strategic goals and expand its product portfolio into new growth areas[43] Product and Market Development - Consumer behavior is shifting towards quality products, presenting opportunities for the company as a premium cookie manufacturer[27] - The product portfolio includes sweet and savory biscuits, cream-filled cookies, and wafers, accounting for approximately 63.3% of total revenue in 2024, down from 67.7% in 2023[30] - The company continues to focus on product innovation and market expansion to capture new snacking occasions amid increasing competition[33] - Revenue from sweet biscuits increased by 1.8% to approximately RMB 523.0 million due to effective promotional strategies[56] - Revenue from salty biscuits decreased by approximately RMB 7.1 million, a decline of 14.6%, attributed to intense competition and changing consumer preferences[57] - Revenue from pasta increased by 26.7% to approximately RMB 162.3 million, reflecting strong market demand[54] - Revenue from flour surged by 117.0% to approximately RMB 176.2 million, indicating significant growth in this segment[54] Corporate Governance - The board consists of 12 members, including 8 executive directors and 4 independent non-executive directors[82] - The company emphasizes the importance of diversity and inclusion within the board, currently having one female member, representing 8.3%[81] - The company has deviated from the corporate governance code by having the same individual, Mr. Huang, serve as both Chairman and CEO, which is deemed appropriate for maintaining policy continuity and operational stability[86] - The board held four meetings during the fiscal year ending December 31, 2024, with all directors attending all meetings[89] - The company encourages continuous professional development for directors to enhance their knowledge and skills, which is considered a valuable asset[94] Risk Management and Compliance - The company has a structured risk management approach to mitigate risks and seize opportunities as they arise[151] - The board of directors is responsible for assessing the nature and extent of risks the group is willing to accept to achieve strategic objectives[145] - The company has established policies and processes to monitor the provision of non-audit services by external auditors, ensuring cost efficiency and compliance with regulations[112] - The company complies with relevant laws and regulations in both China and Hong Kong, with no significant compliance issues reported[184] Community Engagement and Sustainability - Community engagement efforts included donations of approximately RMB 5.0 million to local non-profit organizations, a year-on-year increase of 147.6%[39] - The company aims to reduce plastic usage by 15% through a new eco-friendly packaging series[39] - The company plans to expand its sustainable product line and deepen community impact as part of its 2025 roadmap[40] - The company is committed to addressing legal and environmental responsibilities through updated policies and employee training programs[158] Shareholder Returns - The proposed final dividend per share remains unchanged at HKD 0.1[16] - The board proposed a final dividend of HKD 0.10 per share for the year, subject to shareholder approval[38] - The company aims for sustainable revenue growth, increased profit margins, strong cash flow, and enhanced shareholder returns in the coming years[43]

嘉士利为中国最大的优质饼干生产商之一，自1956年发展至今，拥有逾68年的悠久历史。我们以12多种 品牌在约31个省和直辖市以及310个地级市营销、销售及分销产品，在中国推出逾660个存货单位。在嘉 士利，食物销售不过是服务客户的其中一环。服务客户也意味着作为负责任及可持续发展的企业，为所 有持份者(客户、同事、供应商及股东)提供安全、营养及实惠的饼干，令持份者感到物超所值。 凭藉经验丰富且专注的管理团队、稳健的盈利模式及强大的品牌吸引力，本集团在复杂多变的经济环境 中稳步前进，并于2024年收益再创新高，本集团在有效运营的前提下，于2024年实现收益约18亿元的历 史新高。自2020年以来，本集团的收益一直保持复合年增长率4.4%的增长。在成本压力上升的影响 下，我们加强了对客户、同事、供应商及社区的支持，业务随之表现出了令人难以置信的弹性。 同时，我们在实现战略重点方面取得了进一步进展。中国经济的进一步復苏和消费市场的新特点、新趋 势对我们而言既是挑战也是机遇，为消费者提供更有价值的消费体验是我们长期以来一直致力的重大主 题。2024年，中华人民共和国(中国)国内生产总值(国内生产总值)同比增长5.0%， ...

Financial Performance - Revenue for the year ended December 31, 2024, was RMB 1,802,587, an increase of 6.9% compared to RMB 1,686,182 in 2023[2] - Gross profit for the same period was RMB 513,233, reflecting a 2.1% increase from RMB 502,883 in the previous year[2] - Net profit for the year decreased by 21.0% to RMB 48,285 from RMB 61,130 in 2023[2] - EBITDA for the year was RMB 203,108, down 2.9% from RMB 209,072 in 2023[2] - Basic earnings per share decreased by 14.8% to RMB 13.12 from RMB 15.40 in the previous year[2] - The group reported total revenue of RMB 1,802,587,000 for the year ending December 31, 2024, compared to RMB 1,686,182,000 in 2023, reflecting an increase of approximately 6.9%[13] - The company reported a net profit before tax of RMB 90,165 thousand for the year, compared to a loss of RMB 2,102 thousand in the previous year[25] - The company’s basic earnings attributable to the company's owners for 2024 were RMB 54,461,000, compared to RMB 63,918,000 for 2023, reflecting a decrease of approximately 14.5% [40] - The gross profit for 2024 was approximately RMB 513.2 million, representing a year-on-year growth of 2.1%[76] - Net profit decreased by 21.0% to approximately RMB 48.3 million, resulting in a net profit margin of 2.7%, down from 3.6% in 2023[56] Revenue Breakdown - Revenue from biscuit products amounted to RMB 1,360,780,000, while revenue from pasta products and flour products were RMB 162,277,000 and RMB 176,227,000 respectively[23] - Revenue from cookies, pasta, and flour business was approximately RMB 1,782.2 million, a 6.0% increase year-on-year, accounting for 98.9% of total revenue[63] - Revenue from noodle products increased to RMB 162,277 thousand in 2024, compared to RMB 128,063 thousand in 2023, representing a growth of approximately 26.7%[28] - Revenue from the flour business surged by 117.0% year-on-year to approximately RMB 176.2 million after acquiring a third-party flour business[74] - Revenue from coarse grain cookies increased by 6.9% year-on-year to approximately RMB 59.1 million, driven by health-conscious consumer trends[69] Expenses and Costs - Research and development expenses amounted to RMB 53,424 thousand in 2024, a decrease from RMB 57,057 thousand in 2023[32] - The total sales and distribution expenses were RMB 212,007 thousand in 2024, compared to RMB 80,399 thousand in 2023, indicating a significant increase[25] - Sales and distribution expenses accounted for 13.5% of revenue in 2024, up from 12.6% in 2023, reflecting increased marketing efforts[59] - The company faced challenges from rising procurement costs, particularly a 9.3% increase in palm oil prices, impacting production costs[56] - Administrative expenses for the year ending December 31, 2024, are approximately RMB 1,114 million, an increase of RMB 91 million or 8.9% year-on-year[80] Assets and Liabilities - Total assets as of December 31, 2024, were RMB 1,214,447, a decrease from RMB 1,299,650 in 2023[5] - Current liabilities increased to RMB 1,053,557 from RMB 881,142 in the previous year[5] - The group’s total liabilities exceeded current assets by approximately RMB 175,509,000 as of December 31, 2024, prompting careful consideration of future liquidity[10] - The company’s total liabilities rose to RMB 343,839,000 in 2024, compared to RMB 262,062,000 in 2023, representing an increase of approximately 31.1% [51] - The company’s current liabilities net amount is approximately RMB 1,755 million, with a current ratio of 0.83, down from 1.03 in 2023[86] Cash Flow and Financing - Cash and cash equivalents rose to RMB 379,129 from RMB 290,086 in 2023[4] - The group has available unutilized bank financing of approximately RMB 140,000,000 as of December 31, 2024[11] - The group expects to generate sufficient cash inflows from operating activities within the anticipated timeframe[11] - The group has taken measures to alleviate liquidity issues and improve financial conditions, including plans to refinance short-term bank borrowings of RMB 266,000,000 upon maturity[11] - The company’s financial assets measured at fair value through profit or loss increased to RMB 154,806,000 in 2024 from RMB 93,666,000 in 2023, reflecting a growth of approximately 65.2% [43] Dividends and Shareholder Information - The company proposed a final dividend of HKD 0.1 per share, unchanged from the previous year[2] - The company declared a final dividend of HKD 0.10 per share for 2023, totaling approximately HKD 41,500,000 (equivalent to about RMB 38,316,000) [37] - The company proposed a final dividend of HKD 0.10 per share for the year ending December 31, 2024, consistent with the previous year[101] - The annual general meeting is scheduled for May 30, 2025, with a notice to be issued to shareholders in due course[98] Corporate Governance - The audit committee, consisting of four independent non-executive directors, reviewed the financial performance for the year ending December 31, 2024[95] - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules, with a noted deviation regarding the roles of the chairman and CEO being held by the same individual[93] - The financial statements for the year ending December 31, 2024, were approved by the board on March 21, 2025, and have been audited by Deloitte[96] Future Outlook - The company anticipates a challenging operating environment in 2025 but aims to maintain market share and product competitiveness while focusing on operational efficiency and cost-saving measures[90] - The company plans to enhance existing featured products and develop new products to maintain market competitiveness and meet consumer needs[60] - The company continues to adapt to changing consumer preferences, emphasizing clean labels, convenience, nutrition, authenticity, and premiumization[58]

能 f 嘉士利集團有限公司 JIASHILI GROUP LIMITED (於開曼群島註冊成立的有限公司) 股票代碼 : 1285 黄金薄饼 当前因 00 00 00 000 134 (通 蛋白温州 . ● ● . 0 反式翻墙 to Ve . ● . . ● . 50. . . . . REA . ● . . 目錄 簡明綜合財務報表附註 20 財務摘要 2 主席報告 3 管理層討論及分析 4 其他資料 9 簡明綜合財務報表審閱報告 13 簡明綜合損益及其他全面收益表 14 簡明綜合財務狀況表 16 簡明綜合權益變動表 18 簡明綜合現金流量表 19 財務摘要 截至六月三十日止六個月 （未經審核） 二零二四年 二零二三年 變化 嘉士利集團有限公司（「本公司」或「嘉士利」）董事（「董事」）會（「董事會」）欣然呈列本公司及其附屬公司（統稱「本 集團」或「我們」）截至二零二四年六月三十日止六個月（「報告期」）之未經審核簡明綜合中期業績連同二零二三年 同期之比較數字。 財務業績概要 （除每股盈利外，所有金額均以人民幣（「人民幣」）千元列示） （經重列） （增 ／減） | --- | --- | --- | --- | ...

Financial Performance - The group's unaudited consolidated revenue for the six months ended June 30, 2024, was approximately RMB 806.0 million, an increase of 3.1% compared to the same period last year[1]. - The profit attributable to the owners of the company for the six months ended June 30, 2024, was approximately RMB 21.6 million, a decrease of 25.1% compared to the same period last year[1]. - The EBITDA from continuing operations for the six months ended June 30, 2024, was approximately RMB 97.8 million, a decrease of 16.8% compared to RMB 117.6 million for the same period last year[1]. - Total comprehensive income for the period was RMB 14.9 million, compared to RMB 24.3 million for the same period last year[4]. - The basic earnings per share from continuing operations for the six months ended June 30, 2024, was RMB 5.32, down from RMB 12.47 for the same period last year[4]. - The company reported a pre-tax profit from continuing operations of RMB 26,641,000 for the period[19]. - The company reported a net profit before tax from continuing operations of RMB 60,571 thousand for the six months ended June 30, 2024[23]. - The company reported a net loss of RMB 501,000 for the six months ended June 30, 2024, significantly improved from a net loss of RMB 22,944,000 in the same period of 2023[32]. Revenue Breakdown - The revenue from cookie products was RMB 623,618,000, contributing significantly to the total revenue, while the revenue from noodle products and flour products were RMB 68,132,000 and RMB 145,474,000 respectively[19]. - The cookie segment generated revenue of approximately RMB 621.6 million, a decline of 11.1% year-on-year, accounting for 77.1% of total revenue[57]. - The pasta segment reported revenue of approximately RMB 68.1 million, an increase of 15.2% year-on-year, representing 8.4% of total revenue[57]. - The flour segment generated revenue of approximately RMB 92.2 million, accounting for 11.4% of total revenue[57]. Cash Flow and Liquidity - The net cash inflow from operating activities for the six months ended June 30, 2024, was approximately RMB 44.2 million, an increase of approximately RMB 44.9 million compared to the same period last year[1]. - As of June 30, 2024, the company had available undrawn bank financing of approximately RMB 82,823,000, which supports its liquidity position[10]. - The company expects to generate sufficient cash inflows from operating activities within the anticipated timeframe[10]. - The cash inflow from operating activities for the first half of 2024 was approximately RMB 44.2 million, showing a significant increase of 6,337.5% year-on-year[54]. - The net cash inflow from operations was approximately RMB 44.2 million, an increase of approximately RMB 44.9 million or 6,337.5% year-on-year[65]. Expenses and Costs - The total administrative expenses amounted to RMB 45,690 thousand for the six months ended June 30, 2024[23]. - Research and development expenses increased to RMB 25,939 thousand in 2024 from RMB 24,978 thousand in 2023, reflecting a growth of approximately 3.9%[25]. - The total depreciation and amortization expenses increased to RMB 52,892 thousand in 2024 from RMB 40,147 thousand in 2023, an increase of approximately 31.8%[29]. - Sales and distribution expenses were approximately RMB 97.2 million, a slight decrease of 0.1% year-on-year, attributed to effective control over logistics and distribution networks[61]. - Administrative expenses increased by approximately RMB 7.9 million or 17.3% to RMB 53.6 million, mainly due to the expansion of production facilities to meet customer demand[62]. Assets and Liabilities - Non-current assets, including property, plant, and equipment, amounted to RMB 698.8 million as of June 30, 2024, compared to RMB 696.9 million as of December 31, 2023[5]. - Current liabilities totaled RMB 863.7 million as of June 30, 2024, compared to RMB 881.1 million as of December 31, 2023, indicating a reduction in liabilities[7]. - The total equity of the company as of June 30, 2024, was RMB 981,784,000, a slight decrease from RMB 1,004,013,000 at the end of 2023[16]. - The company’s total liabilities decreased from RMB 295,637,000 to RMB 287,790,000, reflecting improved financial management[16]. - Trade receivables and notes amounted to RMB 42,372,000 as of June 30, 2024, down from RMB 63,124,000 as of December 31, 2023[43]. - Trade payables totaled RMB 89,456,000 as of June 30, 2024, a decrease from RMB 138,677,000 as of December 31, 2023[46]. Corporate Governance and Future Outlook - The company has adopted the corporate governance code and has complied with its principles since the listing date, with a commitment to maintaining high standards of corporate governance[68]. - The audit committee consists of four independent non-executive directors who continuously review the accounting principles and financial reporting of the group[71]. - The company remains cautiously optimistic about achieving satisfactory results in business operations for the second half of the year, focusing on operational efficiency and brand awareness[66]. - The board decided not to declare an interim dividend, focusing on cash flow management for the second half of the fiscal year[73].

Business Expansion and Acquisitions - The company acquired Kangli and Guangdong Fengjia Food Co., Ltd., expanding into the noodle and flour product businesses, which are now considered new reportable segments[5] - The company completed the acquisition of Guangdong Kangli and Kailan Flour in 2023, expanding its product portfolio and achieving expected results[187] - The company acquired a hotel property in Kaiping, Guangdong, China, for RMB 100,000,000 in January 2023, with the acquisition completed in October 2023[130] Financial Performance and Metrics - The company's total assets minus current liabilities increased to RMB 1,299,650 thousand in 2023, up from RMB 1,199,627 thousand in 2022[11] - Current liabilities decreased to RMB 881,142 thousand in 2023 from RMB 921,148 thousand in 2022, with a notable reduction in trade payables, notes payable, and other payables[11] - Non-current liabilities increased to RMB 295,637 thousand in 2023 from RMB 196,036 thousand in 2022, driven by higher bank borrowings and other borrowings[11] - The company's net asset value slightly increased to RMB 1,004,013 thousand in 2023 from RMB 1,003,591 thousand in 2022[11] - Current tax expenses for the year increased to RMB 30,073 thousand in 2023 from RMB 17,097 thousand in 2022, reflecting higher corporate income tax in China[7] - Deferred tax liabilities decreased to RMB 8,410 thousand in 2023 from RMB 8,664 thousand in 2022[11] - The company's equity attributable to owners of the company increased to RMB 967,379 thousand in 2023 from RMB 964,569 thousand in 2022[12] - Non-controlling interests decreased to RMB 36,634 thousand in 2023 from RMB 39,022 thousand in 2022[12] - The company's net current assets decreased to RMB 28,414 thousand in 2023 from RMB 54,110 thousand in 2022[11] - The company's statutory surplus reserve increased to approximately RMB 144,525,000 as of December 31, 2023, compared to RMB 136,643,000 in 2022 (restated)[14] - The discretionary surplus reserve rose to approximately RMB 72,021,000 as of December 31, 2023, up from RMB 68,079,000 in 2022 (restated)[14] - A non-controlling shareholder of a subsidiary contributed RMB 400,000 in cash during the year ended December 31, 2023, compared to RMB 3,000,000 in 2022[14] - Profit before tax for operating activities was RMB 90,165,000 in 2023, up from RMB 77,369,000 in 2022[15] - Depreciation of property, plant, and equipment increased to RMB 68,681,000 in 2023 from RMB 62,470,000 in 2022[15] - Net cash generated from operating activities rose significantly to RMB 176,437,000 in 2023, compared to RMB 71,584,000 in 2022[15] - The company recognized a net impairment loss of RMB 45,138,000 under the expected credit loss model in 2023, more than double the RMB 21,683,000 in 2022[15] - Amortization of intangible assets increased to RMB 8,905,000 in 2023 from RMB 5,838,000 in 2022[15] - The company's total comprehensive income for the year ended December 31, 2023 was RMB 63,020,000, compared to RMB 60,232,000 in 2022[13] - The company's total equity as of December 31, 2023 stood at RMB 1,004,013,000, slightly down from RMB 1,003,591,000 at the end of 2022[13] - Non-current assets including property, plant, and equipment increased to RMB 504,871 thousand from RMB 448,795 thousand, reflecting an addition of RMB 56,076 thousand[18] - Right-of-use assets rose to RMB 212,629 thousand from RMB 204,175 thousand, with an increase of RMB 8,454 thousand[18] - Investment properties grew to RMB 16,290 thousand from RMB 10,603 thousand, adding RMB 5,687 thousand[18] - Intangible assets, specifically goodwill, remained unchanged at RMB 31,648 thousand and RMB 38,337 thousand respectively[18] - Loans to a joint venture and a subsidiary's non-controlling shareholder amounted to RMB 158,949 thousand and RMB 4,947 thousand respectively[18] - Current assets, including inventories and trade receivables, increased to RMB 114,546 thousand from RMB 104,729 thousand, with an addition of RMB 9,817 thousand[18] - Other receivables and prepayments rose to RMB 158,369 thousand from RMB 145,376 thousand, adding RMB 12,993 thousand[18] - Cash and cash equivalents increased to RMB 320,301 thousand from RMB 310,108 thousand, reflecting an addition of RMB 10,193 thousand[18] - Total current assets grew to RMB 975,258 thousand from RMB 939,389 thousand, with an increase of RMB 36,077 thousand[18] - Revenue for the period was 1,686,182 (compared to 1,763,996 in the previous period), with a cost of sales of 1,183,299 (compared to 1,301,953)[27] - Gross profit increased to 502,883 from 462,043 in the previous period[27] - Other income and gains/losses were 62,816 (compared to 59,756), with other losses of 2,102 (compared to gains of 3,130)[27] - Selling and distribution expenses decreased to 212,007 from 225,804[27] - Administrative expenses were 102,241 (compared to 87,606), and other expenses were 80,399 (compared to 76,207)[27] - Profit before tax was 90,165 (compared to 77,369), with tax expenses of 29,035 (compared to 15,145)[27] - Net profit for the year was 61,130 (compared to 62,224)[27] - Earnings per share (basic) were 15.40 RMB cents (compared to 15.57 RMB cents)[27] - The company's share of profits from associates was a loss of 1,032 (compared to a loss of 6,738)[27] - The company's share of profits from a joint venture was a loss of 3,462 (compared to a profit of 1,593)[27] - The group's accounts receivable amounted to RMB 152,411,000 as of December 31, 2023, with an expected credit loss provision of RMB 38,283,000[48] - The group recognized impairment losses of approximately RMB 28,313,000 for the year ended December 31, 2023, based on the expected credit loss model for accounts receivable[48] - Revenue for 2023 was RMB 1,686,182 thousand, a decrease of 4.4% compared to RMB 1,763,996 thousand in 2022[71] - Gross profit for 2023 was RMB 502,883 thousand, an increase of 8.8% compared to RMB 462,043 thousand in 2022[71] - Net profit for 2023 was RMB 61,130 thousand, a decrease of 1.8% compared to RMB 62,224 thousand in 2022[71] - Total assets for 2023 were RMB 2,180,792 thousand, an increase of 2.8% compared to RMB 2,120,775 thousand in 2022[72] - Total liabilities for 2023 were RMB 1,176,779 thousand, an increase of 5.3% compared to RMB 1,117,184 thousand in 2022[72] - Net cash provided by operating activities for 2023 was RMB 176,437 thousand, an increase of 146.5% compared to RMB 71,584 thousand in 2022[72] - Net cash used in investing activities for 2023 was RMB 213,549 thousand, an increase of 331.2% compared to RMB 49,515 thousand in 2022[72] - Net cash provided by financing activities for 2023 was RMB 7,821 thousand, compared to net cash used of RMB 96,856 thousand in 2022[72] - Total equity for 2023 was RMB 1,004,013 thousand, a slight increase of 0.04% compared to RMB 1,003,591 thousand in 2022[72] - Exchange differences on translation of foreign operations resulted in a loss of RMB 898 thousand in 2023[69] - The company's consolidated financial statements for the year ended December 31, 2023, were prepared in accordance with International Financial Reporting Standards (IFRS) and provide a true and fair view of the financial position and performance[73] - Total revenue for 2023 was RMB 1,732,000, with biscuit products contributing RMB 1,375,420, noodle products RMB 129,883, flour products RMB 119,487, and other products RMB 107,210[137] - The company's segment performance for 2023 showed a profit of RMB 502,883, with biscuit products contributing RMB 448,411, noodle products RMB 22,962, flour products RMB 7,240, and other products RMB 24,270[137] - Depreciation of property, plant, and equipment for 2023 was RMB 68,681, with biscuit products accounting for RMB 54,371, noodle products RMB 7,460, flour products RMB 1,715, and other products RMB 5,135[140] - The company's pre-tax profit for 2023 was RMB 90,165, after accounting for other income, expenses, and financial costs[137] - The company's revenue from distributors in 2023 was RMB 1,658,676, while revenue from supermarkets was RMB 3,310 and from retail customers was RMB 24,196[133] - Biscuit product revenue decreased to RMB 514,034 thousand in 2023 from RMB 596,193 thousand in 2022, a decline of 13.8%[142] - Noodle product revenue decreased to RMB 1,372,622 thousand in 2023 from RMB 1,594,970 thousand in 2022, a decline of 13.9%[142] - R&D expenses decreased to RMB 57,057 thousand in 2023 from RMB 59,135 thousand in 2022, a decline of 3.5%[144] - The fair value loss of non-listed equity investment funds recognized in profit or loss was RMB 13,465 thousand in 2023, compared to a gain of RMB 2,963 thousand in 2022[153] - The carrying amount of non-listed equity investment funds decreased to RMB 93,666 thousand in 2023 from RMB 107,131 thousand in 2022, a decline of 12.6%[153] - Government subsidies increased to RMB 12,420 thousand in 2023 from RMB 10,309 thousand in 2022[161] - Interest income from bank balances and deposits decreased to RMB 3,920 thousand in 2023 from RMB 5,170 thousand in 2022[161] - Scrap and packaging material sales increased to RMB 22,081 thousand in 2023 from RMB 17,205 thousand in 2022[161] - Total impairment losses recognized under the expected credit loss model increased to RMB 45,138 thousand in 2023 from RMB 21,683,000 in 2022[166] - Financial costs decreased to RMB 29,153 thousand in 2023 from RMB 31,115 thousand in 2022[166] - Pre-tax profit increased to RMB 90,165 thousand in 2023 from RMB 77,369 thousand in 2022[168] - Income tax expense increased to RMB 29,035 thousand in 2023 from RMB 15,145 thousand in 2022[168] - The company's subsidiary, Guangdong Jiasili Food Group Co., Ltd., is eligible for a reduced corporate income tax rate of 15% from 2021 to 2023[167] - The company's subsidiary, Kailan Flour Co., Ltd., is exempt from corporate income tax for wheat flour primary processing[167] - The total remuneration for directors and key executives amounted to RMB 4,716 thousand in 2023[165] - Revenue for 2023 was RMB 1,686,182 thousand, a decrease of 4.4% compared to RMB 1,763,996 thousand in 2022[172] - Gross profit increased by 8.8% to RMB 502,883 thousand in 2023, with gross margin improving by 3.6 percentage points to 29.8%[172] - Net profit for 2023 was RMB 61,130 thousand, a slight decrease of 1.8% from RMB 62,224 thousand in 2022[172] - EBITDA increased by 11.5% to RMB 209,072 thousand in 2023, compared to RMB 187,502 thousand in 2022[172] - Operating profit (EBIT) rose by 10.0% to RMB 119,318 thousand in 2023, up from RMB 108,484 thousand in 2022[172] - The company's sweet biscuit segment accounted for 30.5% of total revenue in 2023, making it the largest product category[171] - Employee benefits expenses totaled RMB 258,068 thousand in 2023, a decrease of 4.0% from RMB 268,755 thousand in 2022[169] - Depreciation and amortization expenses increased to RMB 89,754 thousand in 2023, up from RMB 79,018 thousand in 2022[169] - The company proposed a final dividend of HKD 0.1 per share for 2023, a 100% increase compared to HKD 0.05 per share in 2022[172] - The compound annual growth rate (CAGR) for the period 2019-2023 was -1.6%, reflecting a slight decline in overall performance[173] - The company's operating profit (EBIT) increased by 10.0% to approximately RMB 119.3 million (2022: RMB 108.5 million), with an EBIT margin of 7.1% (2022: 6.1%)[187] - The company's gross profit margin increased by 3.6 percentage points to 29.8% in 2023 (2022: 26.2%)[188] - The company's net operating cash flow reached approximately RMB 176.4 million (2022: RMB 71.6 million)[187] - The company proposed a final dividend of HK$0.10 per share for the year, payable on June 14, 2024, to shareholders registered as of May 31, 2024[193] - The company expects strong cash flow generation in the new year due to improved profitability[197] - The company plans to seek M&A opportunities to expand geographically and diversify its product portfolio[197] - The company aims to achieve revenue growth, increased profit margins, strong cash flow, and enhanced shareholder returns in the coming years[197] Lease and Asset Management - The company applies the short-term lease exemption to office properties and car leases with terms of 12 months or less, recognizing lease payments on a straight-line basis[26] - The group's right-of-use assets are measured at cost less accumulated depreciation and impairment losses, adjusted for any remeasurement of lease liabilities[40] - Lease liabilities are initially recognized and measured at the present value of lease payments not yet paid at the commencement date, using the incremental borrowing rate if the implicit interest rate is not readily determinable[43] - The group remeasures lease liabilities (and adjusts related right-of-use assets) when there are changes in lease terms, assessments of purchase options, or market rent adjustments[46] - Refundable rental deposits are initially measured at fair value under IFRS 9, with adjustments to fair value treated as additional lease payments and included in the cost of right-of-use assets[42] - The group presents right-of-use assets as separate line items in the consolidated financial statements, with those meeting the definition of investment properties included under "investment properties"[41] - The group's lease payments include fixed payments (including in-kind fixed payments) less any lease incentives receivable[44] - The group's lease liabilities are adjusted for accrued interest and lease payments after the commencement date[45] - Lease modifications are accounted for as separate leases if they expand the scope of the lease by adding one or more underlying assets, and the increase in lease consideration is commensurate with the standalone price of the additional scope[74] - The company classifies leases as either finance or operating leases, with finance leases transferring substantially all risks and rewards of ownership to the lessee[76] - Refundable rental deposits are initially measured at fair value under IFRS 9, with adjustments to fair value treated as additional lease payments by the lessee[77] Tax and Accounting Policies - The company's deferred tax liabilities are recognized based on taxable temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and their corresponding tax bases[100] - The company's deferred tax assets are recognized only when sufficient taxable profits are expected to be available to offset deductible temporary differences[100] - The company does not recognize deferred tax liabilities for temporary differences arising from the initial recognition of goodwill[100] - The company's deferred tax assets and liabilities are not recognized if temporary differences arise from transactions that do not affect taxable or accounting profits at the time of the transaction[100] - Current tax expense is calculated based on taxable profits for the year, using tax rates enacted or substantively enacted at the reporting date[114] - Deferred tax assets and liabilities are measured at the tax rates expected to apply in the period when the liability is settled or the asset is realized, based on tax rates enacted or substantively enacted at the reporting date[115] Impairment and Credit Risk - The company's expected credit loss model for financial assets at amortized cost is subject to estimation uncertainties, with potential variations in future settlements[132] - The company's write-off policy for financial assets is triggered when there is evidence of severe financial difficulty of the counterparty, with no realistic possibility of recovery[127] - The company's credit risk assessment includes monitoring external market indicators and adverse changes in the debtor's business, financial, or economic conditions[126]

Financial Performance - The company's revenue for the year ended December 31, 2023, was approximately RMB 1,686.2 million, representing a 4.4% increase from RMB 1,764.0 million in 2022[32]. - Gross profit for the same period was RMB 502.9 million, an increase of 8.8% compared to RMB 462.0 million in the previous year[32]. - The EBITDA for the year was RMB 209.1 million, reflecting an 11.5% increase from RMB 187.5 million in 2022[32]. - The operating profit (EBIT) increased by 10.0% to RMB 119.3 million from RMB 108.5 million in the prior year[32]. - The net profit for the year was RMB 61.1 million, a slight decrease of 1.8% from RMB 62.2 million in 2022[32]. - The basic earnings per share for 2023 was RMB 15.40, slightly down from RMB 15.57 in 2022, representing a decrease of 1.1%[39]. - The company reported a credit loss of RMB (45,138,000) in 2023, compared to RMB (21,683,000) in 2022, indicating an increase in expected credit losses[34]. - The company declared a final dividend of HKD 0.10 per share for 2023, totaling approximately RMB 37,644,000, up from RMB 18,210,000 in 2022[122]. Assets and Liabilities - As of December 31, 2023, the net current assets were approximately RMB 28.4 million, down from RMB 54.1 million in 2022, with a current ratio of 1.03 compared to 1.06 in 2022[6]. - The net debt as of December 31, 2023, was approximately RMB 406.1 million, up from RMB 282.9 million in 2022, indicating a significant increase due to business expansion[29]. - The total capital debt ratio as of December 31, 2023, was 54.0%, compared to 52.7% in the previous year[29]. - The total liabilities decreased to RMB 881,142,000 in 2023 from RMB 921,148,000 in 2022, a reduction of 4.3%[41]. - The total amount of receivables in 2023 was RMB 45,138 thousand, significantly higher than RMB 21,683 thousand in 2022, indicating an increase of approximately 108%[91]. Expenses - Administrative expenses for the year ended December 31, 2023, amounted to RMB 102.2 million, an increase of RMB 14.6 million or 16.7% year-on-year, primarily due to increases in legal and professional expenses, depreciation, and other office expenses[1]. - Total employee benefits expenses, including directors and senior management, amounted to approximately RMB 258.1 million for the year ended December 31, 2023[12]. - The total depreciation and amortization expenses for 2023 were RMB 89,754 thousand, up from RMB 79,018 thousand in 2022, indicating an increase of approximately 13.5%[99]. - The company reported a total of RMB 1,182,138 thousand in cost of goods sold for the year, compared to RMB 1,301,953 thousand in 2022, showing a decrease of about 9.2%[99]. Inventory and Receivables - Inventory balance increased by RMB 58.2 million to RMB 172.8 million as of December 31, 2023, compared to RMB 114.5 million as of December 31, 2022, resulting in an increase in inventory turnover days from 31 days in 2022 to 44 days in 2023[2]. - Trade receivables, notes receivable, and other receivables increased by 43.1% from approximately RMB 158.4 million in 2022 to approximately RMB 226.7 million in 2023, with turnover days increasing from 35 days to 42 days[5]. - Trade payables, notes payable, and other payables decreased by 5.4% from approximately RMB 276.9 million in 2022 to approximately RMB 262.1 million in 2023, with turnover days decreasing from 91 days to 83 days[5]. Market Outlook and Strategy - The company expects 2024 to be a challenging year with a highly competitive operating environment, focusing on maintaining market share and product competitiveness[11]. - The company aims to enhance operational efficiency and continue investing in various businesses and technologies[145]. - The company plans to adapt its business model to meet changing consumer preferences, focusing on clean labels, convenience, and nutrition[142]. - The company is actively seeking to expand its product portfolio to meet customer expectations, focusing on various brands and flavors[182]. - The overall financial outlook remains positive, with management guiding for continued revenue growth and improved profitability in the next fiscal year[49]. Acquisitions and Investments - The company acquired 100% equity of Guangdong Kangli Food Co., Ltd. for a total cash consideration of RMB 135,000,000, gaining control on April 19, 2023[47]. - The group acquired Kangli and Guangdong Fengjia Food Co., Ltd., expanding into pasta and flour products, respectively[77]. - The company invested RMB 103.5 million in a non-listed equity investment fund as a limited partner[153]. Research and Development - The company's research and development expenditure for 2023 was approximately RMB 57.1 million, a slight decrease of 3.5% year-on-year, representing 3.4% of total revenue[174]. - R&D expenses rose significantly to RMB 2,012,000 in 2023, compared to RMB 434,000 in 2022, marking an increase of 363.6%[115]. Product Performance - The total revenue from the bakery products segment in 2023 was RMB 1,186,475 thousand, down from RMB 1,431,315 thousand in 2022, reflecting a decline of approximately 17.1%[110]. - Revenue from distributors was RMB 1,658,676 thousand, while supermarket sales increased to RMB 3,310 thousand, and retail customers contributed RMB 24,196 thousand[52]. - The revenue from sweet biscuits decreased by 13.8% to approximately RMB 514.0 million in 2023, facing ongoing market challenges[195]. - The revenue from other products, excluding biscuits, increased by 42.4% to approximately RMB 98.8 million, with mooncake revenue growing by 13.7% to RMB 42.2 million[182].

Revenue and Profit Growth - Revenue for the first half of 2023 increased by 1.7% year-on-year to RMB 796.0 million[10] - Revenue increased by 1.7% to approximately RMB 796.0 million compared to RMB 782.6 million in the same period last year[43] - Revenue for the six months ended June 30, 2023, was RMB 796,002 thousand, a slight increase from RMB 782,649 thousand in the same period last year[91] - Revenue for the first half of 2023 increased by 1.7% year-on-year to approximately RMB 796.0 million[128] - Total revenue for the first half of 2023 was RMB 796.002 million, with a segment profit of RMB 242.132 million[157] - Total revenue for the six months ended June 30, 2023, was RMB 796,002 thousand, compared to RMB 782,649 thousand in the same period last year[182] - Gross profit rose by 32.2% to RMB 242.1 million compared to the same period last year[19] - Gross profit increased to RMB 242.1 million, with gross margin rising by 7.0 percentage points due to lower raw material costs and improved production efficiency[48] - Gross profit increased to RMB 242,132 thousand from RMB 183,225 thousand year-over-year, reflecting improved profitability[91] - Gross profit rose by 32.2% year-on-year to approximately RMB 242.1 million, driven by lower raw material costs[128] - Gross margin improved to 30.4%, an increase of 7.0 percentage points compared to the same period last year[128] - Net profit attributable to shareholders skyrocketed by 2,039.6% to RMB 28.8 million[19] - Net profit attributable to the company's owners was RMB 28,799 thousand, a significant rise from RMB 1,346 thousand in the previous year[91] - Profit after tax surged by 11,141.7% year-on-year to approximately RMB 24.3 million[128] - Basic earnings per share increased to RMB 6.94 cents from RMB 0.32 cents in the same period last year[91] - Basic earnings per share attributable to the company's owners were RMB 28,799 thousand, compared to RMB 1,346 thousand in the same period last year[189] Business Expansion and Acquisitions - Revenue from the newly acquired pasta business reached RMB 59.0 million, a 46.0% increase year-on-year[20] - The company expects full-year revenue from the pasta business to range between RMB 120 million and RMB 135 million[20] - The company completed the acquisition of 100% equity in Guangdong Kangli Food Co., Ltd. for a total cash consideration of RMB 135.0 million[17] - The company completed the acquisition of Guangdong Kangli Food Co., Ltd., expanding its product range to include healthier options[31] - The company acquired Kangli and began operating a new business segment related to pasta products[176] - The company completed the acquisition of the remaining 49% equity of Fengjia for a total cash consideration of RMB 9.8 million on August 28, 2023[144] Product Performance - Sweet single-slice biscuit revenue decreased slightly by 1.3% to RMB 263.6 million due to changing consumer habits[12] - Pasta products revenue grew by 46.0% to RMB 59.0 million compared to RMB 40.4 million in the previous year[38][52] - Wafer biscuit revenue rose by 4.9% to RMB 86.4 million, driven by successful marketing and pricing strategies[51] - Other biscuit products revenue increased by 25.0% to RMB 79.4 million, reflecting the company's strategy to expand product variety[47] - Revenue from biscuit products decreased to RMB 699,485 thousand from RMB 727,945 thousand year-over-year, with sweet single-slice biscuits contributing RMB 263,637 thousand[182] - Revenue from noodle products increased to RMB 59,050 thousand from RMB 40,370 thousand year-over-year[182] Financial Position and Liquidity - Total assets grew by 5.3% to RMB 2,232.7 million as of June 30, 2023[19] - Inventory decreased by RMB 8.6 million to RMB 106.0 million, with inventory turnover days at 36 days[39] - Trade receivables, bills, and other receivables increased by 14.8% to RMB 181.9 million, with turnover days at 39 days[49] - Net current assets stood at RMB 6.8 million, with a current ratio of 1.01, indicating a strong liquidity position[50] - Bank balances and cash stood at approximately RMB 339.4 million as of June 30, 2023, compared to RMB 320.3 million as of December 31, 2022[58] - Total bank borrowings increased by 30.7% to approximately RMB 788.4 million as of June 30, 2023, compared to December 31, 2022, to fund expansion and investments[58] - Total capital-to-debt ratio increased to 81.5% as of June 30, 2023, from 60.1% as of December 31, 2022[58] - Net capital-to-debt ratio increased to 46.4% as of June 30, 2023, from 28.2% as of December 31, 2022[58] - Total assets increased to RMB 1,243.2 million as of June 30, 2023, up from RMB 1,145.5 million at the end of 2022[117] - Bank borrowings under current liabilities increased to RMB 608.9 million, up from RMB 510.5 million at the end of 2022[107] - The company's total assets minus current liabilities stood at RMB 1,199.627 million as of June 30, 2023[147] - The company's net current assets were RMB 54.11 million as of June 30, 2023[147] - The company's total equity was RMB 1,003.591 million as of June 30, 2023[147] - Cash and cash equivalents at the end of the period were RMB 339,394 thousand, up from RMB 266,220 thousand at the end of the previous period[106] - Net cash used in operating activities was RMB 709 thousand, a significant improvement from RMB 79,328 thousand used in the same period last year[106] - Net cash used in investing activities was RMB 148,267 thousand, compared to RMB 26,211 thousand in the previous year, reflecting increased investment in property, plant, and equipment[106] - Net cash from financing activities was RMB 167,998 thousand, a turnaround from RMB 24,051 thousand used in the same period last year, driven by new bank loans[106] Expenses and Costs - Sales and distribution expenses decreased by RMB 13.2 million or 11.6% to approximately RMB 100.1 million, primarily due to effective control of logistics and distribution network systems and efficient implementation of advertising and promotion plans[54] - Administrative expenses increased by RMB 2.8 million or 6.5% to approximately RMB 45.9 million, in line with the company's sales targets[55] - R&D expenses decreased to RMB 24.978 million in the first half of 2023, compared to RMB 30.349 million in the same period last year[175] - Exchange losses amounted to RMB 843,000 in the first half of 2023, compared to an exchange gain of RMB 119,000 in the same period last year[161] - Interest expenses from bank loans decreased to RMB 15.679 million in the first half of 2023, down from RMB 17.063 million in the same period last year[161] - The company's total other income and losses amounted to RMB 2.398 million in the first half of 2023, compared to a loss of RMB 787,000 in the same period last year[161] - The company's total non-operating expenses, including donations, packaging material costs, and building rental expenses, amounted to RMB 29.809 million in the first half of 2023[175] - Other income for the period was RMB 22,876 thousand, while sales and distribution expenses were RMB 100,098 thousand[178] Strategic Initiatives and Market Outlook - The company plans to acquire a property in Kaiping City to establish a comprehensive center focused on medical, longevity diet, agriculture, research, leisure, and tourism[3] - The company expects the biscuit and snack market to continue growing and will focus on maintaining market share and product competitiveness[59] - The company plans to optimize product mix, strengthen cost management, and expand new sales channels to enhance competitiveness[129] - The retail consumer market in China recovered rapidly in the first half of 2023, with total retail sales of consumer goods growing by 8.2% year-on-year[114] Employee and Management - Total employee benefits expenses, including directors' and executives' remuneration, amounted to approximately RMB 128.2 million for the six months ended June 30, 2023, compared to RMB 131.7 million for the same period in 2022[75] - The company had 2,184 full-time employees as of June 30, 2023, compared to 2,427 as of December 31, 2022[75] - The company's short-term employee benefits for key management personnel decreased to RMB 2.084 million in the first half of 2023 from RMB 2.702 million in the same period of 2022[139] Dividends and Financial Reserves - The company decided not to declare an interim dividend, focusing on managing cash flow for the second half of the fiscal year[60] - The company's interim dividend for 2023 was RMB 18,210 thousand[83] - The company's statutory surplus reserve increased to RMB 144,596 thousand from RMB 136,643 thousand year-over-year, indicating stronger financial reserves[104] - The company did not recommend an interim dividend for the six months ended June 30, 2023, and June 30, 2022[188] Equity and Reserves - The total equity of the company as of June 30, 2023, was RMB 967,663 thousand, with non-controlling interests amounting to RMB 34,505 thousand[83] - The company's accumulated profits as of June 30, 2023, were RMB 699,172 thousand[83] - The company's share capital remained unchanged at RMB 3,285 thousand from January 1, 2022, to June 30, 2023[83] - The company's share premium decreased from RMB 197,448 thousand on January 1, 2022, to RMB 161,420 thousand on June 30, 2023[83] - The company's special reserve remained at RMB (107,000) thousand from January 1, 2022, to June 30, 2023[83] - The company's statutory reserve increased from RMB 203,586 thousand on January 1, 2022, to RMB 216,650 thousand on June 30, 2023[83] - The company's other reserves decreased from RMB 76,298 thousand on January 1, 2022, to RMB (58,702) thousand on June 30, 2023[83] - The company's total equity before non-controlling interests was RMB 933,158 thousand as of June 30, 2023[83] - The company's profit for the period and total comprehensive income for the six months ended June 30, 2023, was RMB 28,799 thousand[83] Investments and Capital Commitments - Capital commitments for property, plant, and equipment acquisition amounted to RMB 75.0 million as of June 30, 2023[123] - The company invested RMB 39,176 thousand in property, plant, and equipment to enhance operational capabilities, compared to RMB 11,442 thousand in the same period last year[190] - The company recognized a gain of RMB 90,000 from the sale of certain plant and equipment, compared to a loss of RMB 13,000 in the same period last year[190] - The company entered into new lease agreements for land use rights, recognizing right-of-use assets of RMB 28,103 thousand and lease liabilities of RMB 1,035 thousand[191] Market and Distribution - The company's products are distributed in 31 provinces and 310 prefecture-level cities in China, with over 660 stock-keeping units[114] - Revenue from the Chinese market (domestic) reached RMB 794.384 million, accounting for the majority of the total revenue of RMB 796.002 million[154] Taxation and Financial Assets - The company's subsidiary, Guangdong Jiusili Food Group, is recognized as a high-tech enterprise and enjoys a reduced corporate income tax rate of 15% from 2021 to 2023[164] - The company did not generate taxable profits in Hong Kong, resulting in no provision for Hong Kong profits tax for the first half of 2023[163] - The fair value of financial assets measured at fair value through profit or loss was RMB 110.282 million as of June 30, 2023, an increase from RMB 107.131 million at the end of 2022[137][143] - The company's financial assets measured at fair value through profit or loss in China's non-listed equity investment funds were valued using the asset-based approach[137] Other Financial Metrics - EBITDA surged by 79.4% to RMB 94.7 million[19] - The company recorded a pre-tax loss of RMB 4,191 thousand for the six months ended June 30, 2023[179] - The company's interest income from related parties was RMB 8.449 million in the first half of 2023[135] - The company obtained new bank loans of RMB 494.49 million and repaid bank loans of RMB 309.322 million in the first half of 2023[131] - The company's issued and fully paid ordinary shares with a par value of HKD 0.01 per share remained at 415,000,000 shares as of June 30, 2023[132]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部分內容而產生或因 依賴該等內容而引致的任何損失承擔任何責任。 嘉士利集團有限公司 Jiashili Group Limited （於開曼群島註冊成立的有限公司） （股份代號：1285） 截至二零二三年六月三十日止六個月的 中期業績公告 財務摘要 ‧ 本集團截至二零二三年六月三十日止六個月的未經審核綜合收益為約人 民幣796.0百萬元，較去年同期增加1.7%。 ‧ 截至二零二三年六月三十日止六個月的未經審核除稅後綜合溢利為約人 民幣24.3百萬元（截至二零二二年六月三十日止六個月：除稅後溢利約 人民幣0.2百萬元），較去年同期增加11,141.6%。 ‧ 截至二零二三年六月三十日止六個月，本公司權益擁有人應佔未經審核 溢利約人民幣28.8百萬元，增加2,039.6%。 ‧ 截至二零二三年六月三十日止六個月，每股基本盈利為人民幣6.94分（截 至二零二二年六月三十日止六個月：人民幣0.32分）。 ...

Financial Performance - The company's revenue for the year ended December 31, 2022, increased by 4.2% to approximately RMB 1,664.4 million, driven by strong domestic demand in the second half of the year, particularly in Q4 [31]. - The gross profit margin for 2022 was RMB 442 million, reflecting a compound annual growth rate (CAGR) of -1.1% compared to previous years [17]. - The net profit for 2022 decreased by 49.2% or approximately RMB 53.3 million to about RMB 55.0 million, primarily due to increased production costs from raw materials [103]. - The operating profit (EBIT) decreased by 41.3% to approximately RMB 100.3 million, with an EBIT margin of 6.0% [109]. - Net profit attributable to the company's owners was approximately RMB 57.0 million, a decrease of 50.6% compared to the previous year, with a return on equity of 3.4% [110]. - The gross profit decreased by approximately RMB 16.7 million to about RMB 442.2 million, representing a year-on-year decline of 3.6% due to rising raw material costs [102]. - The operating cash flow reached approximately RMB 68.9 million, down from approximately RMB 101.7 million in the previous year [110]. Expenses and Cost Management - Research and development expenses for 2022 were approximately RMB 59.1 million, a slight decrease of 8.6% year-on-year, accounting for 3.6% of total revenue (down from 4.1% in 2021) [29]. - Sales and distribution expenses increased by 1.4% to approximately RMB 219.4 million in 2022, with advertising and promotional expenses accounting for 8.3% of revenue (down from 8.8% in 2021) [33]. - The average price of palm oil increased by approximately 15.4%, flour by 18.3%, and sugar by 5.7% compared to the previous year, impacting profit margins [101]. - The company plans to mitigate raw material price increases through long-term contracts, supply chain management, and operational efficiency improvements [111]. Dividends and Shareholder Returns - The company plans to pay a final dividend of HKD 0.05 per share for the year ended December 31, 2022, unchanged from the previous year, with the total dividend for the year being HKD 0.05 per share (down from HKD 0.15 in 2021) [23]. - The board proposed a final dividend of HKD 0.05 per share, subject to shareholder approval [96]. Market and Product Performance - The revenue from coarse grain biscuits in 2022 was approximately RMB 83.5 million, a decline of 19.6% or about RMB 20.3 million compared to the previous year, prompting a reassessment of market positioning [32]. - Revenue from salty crackers increased by approximately RMB 2.2 million (4.1%) to approximately RMB 56.5 million in 2022, driven by effective branding and pricing strategies [51]. - Revenue from wafer biscuits was approximately RMB 180.0 million, an increase of 14.0% or about RMB 22.1 million compared to the previous year, attributed to consumer preference for the product's taste and texture [52]. Governance and Board Structure - The board held six meetings during the year, with no directors authorizing any alternate directors to attend board meetings [46]. - The board is committed to maintaining diversity, with one female director currently representing 16.7% of the board [40]. - The company has deviated from the corporate governance code by having the same individual, Mr. Huang, serve as both Chairman and CEO, which is considered appropriate due to the need for continuity and stability in operations [67]. - The audit committee, consisting of three independent non-executive directors, held four meetings during the year to oversee the integrity of financial reporting and the relationship with external auditors [76]. - The company emphasizes the importance of ongoing professional development for directors to enhance their knowledge and skills related to corporate governance and regulatory compliance [87]. Risk Management and Challenges - The company continues to face challenges from high inflation and an uncertain business environment but remains confident in its business model for strong performance [101]. - The company acknowledges risks related to consumer spending levels, impulsive purchases, and the ability to manufacture and distribute products effectively [187]. - The company faces potential negative impacts on its overall business and financial performance due to public health issues, such as the COVID-19 pandemic [187]. - The company relies on third parties for essential operational supplies, and any financial or operational difficulties faced by these parties could negatively affect its operations [188]. Strategic Initiatives - The company aims to enhance product quality and supply chain management to achieve zero customer complaints and improve production efficiency [28]. - The company is focusing on understanding and meeting diverse consumer preferences, including clean labels, convenience, nutrition, authenticity, and premiumization [29]. - The company aims to pursue acquisition opportunities to accelerate its strategic goals and expand its product portfolio into new growth areas [98]. - The company aims for long-term sustainable growth through responsible business decisions to enhance shareholder value and achieve stable revenue and dividend growth [196]. Internal Controls and Compliance - The audit committee is responsible for reviewing the effectiveness of internal financial controls and risk management systems [90]. - The board has reviewed the effectiveness of the internal control and risk management systems, confirming their adequacy in all significant aspects [172]. - The audit committee reviews the internal control system annually to ensure its effectiveness [168]. - The company has adopted governance measures to manage potential conflicts of interest with controlling shareholders [176].