| 代码 | 简称 | 回购股数 | 回购金额（万 | 回购最高价 | 回购最低价 | 年内累计回购金额 | | --- | --- | --- | --- | --- | --- | --- | | | | （万股） | 港元） | （港元） | （港元） | （万港元） | | 00700 | 腾讯控股 | 97.50 | 50084.93 | 516.500 | 511.500 | 2853315.68 | | 01299 | 友邦保险 | 300.00 | 20382.49 | 69.000 | 67.150 | 1206539.55 | | 00670 | 中国东方航 空股份 | 220.00 | 648.42 | 2.970 | 2.920 | 49816.45 | | 01519 | 极兔速递-W | 92.00 | 626.52 | 6.870 | 6.730 | 25362.34 | | 09987 | 百胜中国 | 1.39 | 467.34 | 339.400 | 335.200 | 70033.89 | | 01907 | 中国旭阳集 团 | 165.00 | 412.92 | 2.5 ...

Core Insights - On June 3, 40 Hong Kong-listed companies conducted share buybacks, totaling 27.7357 million shares and an aggregate amount of HKD 1.079 billion [1][2] - Tencent Holdings led the buybacks with 994,000 shares repurchased for HKD 500 million, bringing its total buyback amount for the year to HKD 27.031 billion [1][2] - AIA Group followed with a buyback of 6 million shares for HKD 403 million, and Kuaishou-W repurchased 2 million shares for HKD 102 million [1][2] Buyback Details - Tencent Holdings: - Shares repurchased: 994,000 - Buyback amount: HKD 500 million - Highest price: HKD 505.000 - Lowest price: HKD 501.000 - Year-to-date total buyback: HKD 27.031 billion [2] - AIA Group: - Shares repurchased: 6 million - Buyback amount: HKD 403 million - Highest price: HKD 67.650 - Lowest price: HKD 66.550 - Year-to-date total buyback: HKD 11.412 billion [2] - Kuaishou-W: - Shares repurchased: 2 million - Buyback amount: HKD 102 million - Highest price: HKD 51.350 - Lowest price: HKD 50.950 - Year-to-date total buyback: HKD 1.911 billion [2] Other Notable Buybacks - Other companies with significant buybacks include: - Hengan International: 600,000 shares for HKD 13.13 million - China Eastern Airlines: 200,000 shares for HKD 592,760 [2] - The total buyback activity reflects a trend among companies to return capital to shareholders amid market conditions [1][2]

Summary of Key Points Core Viewpoint - A total of 36 companies conducted share buybacks on June 2, 2025, with Tencent Holdings (00700) leading in both the number of shares repurchased and the total amount spent on buybacks. Group 1: Buyback Details - Tencent Holdings (00700) repurchased 1.013 million shares for a total of 501 million CNY, with a year-to-date cumulative buyback of 10.797 million shares, representing 0.118% of its total share capital [1][2] - AIA Group (01299) repurchased 5.448 million shares for 354 million CNY, with a cumulative buyback of 29.266 million shares, accounting for 0.274% of its total share capital [2] - Kuaishou-W (01024) repurchased 6 million shares for 312 million CNY, with a cumulative buyback of 12.3 million shares, representing 2.826% of its total share capital [2] Group 2: Other Notable Buybacks - Times Electric (03898) repurchased 320,700 shares for 10.528 million CNY, with a cumulative buyback of 53.301 million shares, accounting for 9.823% of its total share capital [2] - Stone Four Pharmaceutical Group (02005) repurchased 7.55 million shares for approximately 20.984 million CNY, with a cumulative buyback of 7.55 million shares, representing 0.263% of its total share capital [2] - Modern Dental Group (03600) repurchased 100,000 shares for 4.181 million CNY, with a cumulative buyback of 200,000 shares, accounting for 0.021% of its total share capital [3] Group 3: Additional Companies - China Eastern Airlines (00670) repurchased 2 million shares for 596,650 CNY, with a cumulative buyback of 66.088 million shares, representing 1.277% of its total share capital [2] - Mengniu Dairy (02319) repurchased 300,000 shares for 5.225 million CNY, with a cumulative buyback of 24.596 million shares, accounting for 0.625% of its total share capital [2] - Huazheng Medical (01931) repurchased 20,000 shares for 4.260 million CNY, with a cumulative buyback of 1.824 million shares, representing 0.135% of its total share capital [3]

Summary of Key Points Core Viewpoint - On May 19, 38 Hong Kong-listed companies conducted share buybacks, totaling 38.39 million shares and an aggregate amount of HKD 831 million [1][2]. Group 1: Buyback Details - Tencent Holdings repurchased 979,000 shares for HKD 500 million, with a highest price of HKD 516.50 and a lowest price of HKD 503.00, bringing its total buyback amount for the year to HKD 21.53 billion [1][2]. - AIA Group repurchased 2.34 million shares for HKD 154 million, with a highest price of HKD 66.40 and a lowest price of HKD 64.75, totaling HKD 8.93 billion in buybacks for the year [1][2]. - China COSCO Shipping repurchased 5.56 million shares for HKD 79.36 million, with a highest price of HKD 14.40 and a lowest price of HKD 14.12, accumulating HKD 3.83 billion in buybacks for the year [1][2]. Group 2: Buyback Rankings - The highest buyback amount on May 19 was from Tencent Holdings at HKD 500 million, followed by AIA Group at HKD 154 million [1][2]. - In terms of share quantity, the largest buyback was conducted by Jieli Trading at 9.18 million shares, followed by China COSCO Shipping at 5.56 million shares and NetEase Technology at 4.67 million shares [1][2]. Group 3: Additional Buyback Information - Country Garden Services conducted its first buyback of the year, while Tencent Holdings has made multiple buybacks totaling HKD 21.53 billion [2][3]. - A detailed table of buybacks on May 19 includes various companies, their respective buyback shares, amounts, highest and lowest prices, and cumulative buyback amounts for the year [2][3].

Group 1 - The article reports on share buybacks conducted by various companies on May 12, 2025, with AIA Group (01299) having the largest buyback amount of 1.25 billion, purchasing 2 million shares [1][2] - Other notable buybacks include China COSCO Shipping Holdings (01919) with 4.21 million shares bought back for 53.77 million, and Times Electric (03898) with 1.43 million shares for 47.22 million [2][3] - The total number of shares repurchased by AIA Group in the year reached 5.93 billion, accounting for 5.276% of its total share capital [2] Group 2 - China Hongqiao Group (01378) repurchased 1.13 million shares for 15.96 million, representing only 0.380% of its total share capital [2] - Swire Properties (00019) bought back 181,000 shares for 12.67 million, with a total annual repurchase of 5.56 million shares, which is 6.652% of its total [2] - The buyback activity reflects a trend among companies to utilize excess cash for share repurchases, potentially signaling confidence in their financial health [1][2]

Group 1 - The article reports on share buybacks conducted by various companies on April 30, 2025, highlighting the total amounts and quantities repurchased [1][2][3] - AIA Group (01299) had the largest buyback amount, repurchasing 3.7736 million shares for a total of 217 million [1][2] - China Merchants Industry Holdings (01919) and China Hongqiao Group (01378) also had significant buybacks, with 12.9715 million shares for 151 million and 4.6665 million shares for approximately 64.83 million respectively [2][3] Group 2 - The cumulative buyback amounts for the year show that AIA Group has repurchased a total of 584 million shares, representing 5.198% of its total share capital [2] - China Merchants Industry Holdings has repurchased 241 million shares, accounting for 7.530% of its total share capital [2] - Other notable companies include Times Electric (03898) with 8.016% of its total shares repurchased and Swire Properties (01972) with 1.530% [2][3] Group 3 - The buyback activities reflect a trend among companies to return capital to shareholders, with varying percentages of total share capital being repurchased across different firms [1][2] - Companies like FOSUN Pharma (02196) and Jitu Express (01519) have lower buyback percentages, at 1.800% and 0.645% respectively, indicating a more conservative approach [2][3] - The data suggests a strategic move by companies to enhance shareholder value amidst market conditions [1][2]

Financial Performance - For the fiscal year ending December 31, 2024, the company's revenue was RMB 1,562,648,000, a decrease of 9.9% compared to RMB 1,734,061,000 in 2023[16] - The gross profit for 2024 was RMB 806,334,000, resulting in a gross margin of 51.6%, down from 54.2% in 2023[16] - The profit attributable to shareholders for 2024 was RMB 138,875,000, reflecting a decline of 34.9% from RMB 213,238,000 in 2023[16] - Revenue for the year ended December 31, 2024, decreased by 9.9% to RMB 1,562.6 million from RMB 1,734.1 million in 2023[18] - Gross profit for the year ended December 31, 2024, decreased by 14.3% to RMB 806.3 million, with a gross margin decline from 54.2% in 2023 to 51.6%[18] - Profit attributable to shareholders for the year ended December 31, 2024, decreased by 34.9% to RMB 138.9 million, with a net profit margin decline from 12.3% in 2023 to 8.9%[18] - Basic earnings per share for the year ended December 31, 2024, decreased by 35.0% to RMB 0.13 from RMB 0.20 in 2023[18] - The group's net profit decreased by 34.9% from RMB 213.2 million to RMB 138.9 million, with the net profit margin declining from 12.3% to 8.9% due to reduced revenue[60] Assets and Equity - Total assets as of December 31, 2024, were RMB 2,973,619,000, a slight decrease from RMB 3,001,844,000 in 2023[17] - The total equity for 2024 was RMB 1,765,426,000, compared to RMB 1,785,712,000 in 2023[17] - Cash and cash equivalents increased by 23.8% from RMB 275.1 million to RMB 340.5 million as of December 31, 2024[61] - The total bank borrowings increased from RMB 521.1 million to RMB 571.4 million, with a weighted average effective interest rate of 2.76%[62] Operational Strategy - The company aims to achieve total revenue of RMB 1.56 billion in 2024, despite a challenging economic environment[27] - The company plans to expand its sales network and develop new products, including traditional foods and milk tea, to meet diverse consumer demands[28] - The company will continue to enhance its marketing strategies and customer service to improve operational efficiency and reduce costs[27] - The company is focusing on e-commerce expansion and optimizing its membership system to adapt to changing consumer behaviors[31] - The company intends to strengthen its brand image and competitive advantages through various marketing activities, especially in the digital economy[31] Market Position and Brand Recognition - The company has been recognized as one of the top 10 tea brands in China for 2024, enhancing its brand value and market presence[7] - The company continues to implement a multi-brand strategy to capture various segments of the traditional Chinese tea market[9] - Revenue from tea sales accounted for 69.2% of total revenue, amounting to RMB 1,080.8 million, down from 72.4% in the previous year[46] Product Development and Quality Control - The company has established a food research and development department to diversify its product line, including traditional foods such as pork floss, snow fungus soup, and ready-to-eat bird's nest[37] - The company emphasizes product quality and safety, implementing multiple quality testing procedures to comply with applicable quality regulations[37] - The company is actively developing new products and improving packaging to meet the needs of mid-to-low-end consumers[34] - The company is committed to maintaining compliance with strict regulations in the tea and food industry, including food safety laws and environmental regulations[37] Employee and Governance - As of December 31, 2024, the group had a total of 3,354 employees, with employee costs amounting to RMB 319.6 million, a decrease from RMB 337.5 million for the year ending December 31, 2023[75] - The group conducts annual performance evaluations for employees, which influence salary reviews and promotions, ensuring alignment with local market compensation standards and inflation[75] - The company emphasizes high standards of corporate governance to enhance shareholder value and protect shareholder rights[88] - The board of directors is responsible for leading and controlling the company, overseeing business strategies and performance[91] Risk Management and Compliance - The company employs a three-line defense model for risk management, with operational management as the first line, risk management oversight as the second line, and internal audit as the third line[117] - The internal control system is based on the COSO framework, focusing on monitoring environment, risk assessment, control activities, information and communication, and monitoring activities[119] - The company has established a policy for handling and communicating insider information, ensuring accuracy and compliance before disclosure[120] - The company has mechanisms in place for directors to seek independent professional advice at the company's expense[111] Shareholder Communication and Dividends - The company emphasizes effective communication with shareholders, utilizing financial reports and annual general meetings to enhance investor relations[127] - The company plans to distribute a final dividend of HKD 0.08 per ordinary share, equivalent to RMB 0.07 per share, subject to shareholder approval at the annual general meeting[153] - The company aims to declare dividends of no less than 20% of the consolidated net profit after tax for each financial year, contingent on financial and operational conditions[157] Challenges and Economic Environment - The company has identified macroeconomic risks, including global economic slowdown and geopolitical tensions, which may impact its financial performance[144] - Consumer spending is expected to decline as disposable income is impacted by the unstable macroeconomic environment, particularly affecting high-end and gift tea sales[146] - The company is facing risks from a downturn in the real estate market, which is affecting consumer wealth and spending capacity[145] Related Party Transactions - The company has implemented internal controls to ensure related party transactions are conducted on normal commercial terms, including regular monitoring and reporting by management[198] - The group paid RMB 1,722,857 in rent for properties leased from related parties during the fiscal year ending December 31, 2024[183]

Financial Performance - For the year ending December 31, 2024, revenue decreased by 9.9% to RMB 1,562.6 million from RMB 1,734.1 million in 2023[5] - Gross profit for the year ending December 31, 2024, fell by 14.3% to RMB 806.3 million, with a gross margin of 51.6%, down from 54.2% in 2023[5] - Profit attributable to shareholders decreased by 34.9% to RMB 138.9 million, resulting in a net profit margin of 8.9%, down from 12.3% in 2023[5] - Basic earnings per share for the year ending December 31, 2024, were RMB 0.13, a decrease of 35.0% compared to RMB 0.20 in 2023[5] - The company reported a net profit of RMB 138,875,000 for the year ended December 31, 2024, down from RMB 213,238,000 in 2023, representing a decrease of 34.9%[21][24] - Revenue from tea sales was RMB 1,080,770,000 in 2024, down 13.8% from RMB 1,254,692,000 in 2023[21] - Adjusted operating profit for the tea segment was RMB 155,308,000, compared to RMB 254,139,000 in 2023, reflecting a decline of 38.8%[21][23] Dividends - The board proposed a final dividend of HKD 0.08 per share (equivalent to RMB 0.07), a reduction of 33.3% from RMB 0.12 per share in 2023[5] - Total declared interim dividend for 2024 was RMB 29,326,000, down 42% from RMB 50,196,000 in 2023[36] - Proposed final dividend for 2024 is RMB 80,270,000, a decrease of 32% compared to RMB 118,633,000 in 2023[35] Assets and Liabilities - Total assets as of December 31, 2024, amounted to RMB 2,973.6 million, a slight decrease from RMB 3,001.8 million in 2023[7] - Current assets increased to RMB 1,682.6 million from RMB 1,606.5 million in 2023, primarily driven by cash and cash equivalents rising to RMB 340.5 million[7] - Total liabilities decreased marginally to RMB 1,208.2 million from RMB 1,216.1 million in 2023[9] - Trade and other receivables totalled RMB 245,488,000 as of December 31, 2024, a slight decrease from RMB 248,268,000 in 2023[40] - The total cash outflow for leases in 2024 was RMB 72,485,000, down from RMB 78,712,000 in 2023[39] - The total borrowings increased to RMB 571,380,000 in 2024 from RMB 521,060,000 in 2023, reflecting a rise of about 10%[50] Operational Efficiency - The company plans to continue focusing on the tea segment while exploring opportunities for market expansion and new product development[18] - The company has implemented an integrated ERP system since 2012 to improve efficiency in processing and distribution operations[63] - The distribution costs decreased by 5.8% to RMB 343.1 million, attributed to a reduction in self-owned retail outlets and cost control measures[68] - The company plans to continue optimizing its retail network by establishing new retail outlets in densely populated commercial areas and expanding into third- and fourth-tier cities[60] Market Conditions - The overall economic conditions have led to a soft consumer market, impacting the company's performance[54] - Revenue from tea sales dropped by 13.9% to RMB 1,080.8 million, while tea food sales increased by 1.3% to RMB 247.6 million, and tea utensils sales rose by 2.4% to RMB 179.5 million[65] Corporate Governance - The audit committee reviewed the annual performance for the year ending December 31, 2024, which was approved by the company's auditor, PwC[107] - The board consists of nine members, including executive and independent non-executive directors, ensuring diverse oversight[109] - The company plans to propose the reappointment of PwC as its auditor at the annual general meeting[108] Share Buybacks - The company repurchased 2,447,000 shares at a total value of approximately HKD 9,370,000 during 2024, with a corresponding payment of RMB 8,639,000[44] - The company has not purchased, sold, or redeemed any of its listed securities during the fiscal year ending December 31, 2024, apart from the disclosed buybacks[104] - The board believes that the current trading price of the shares does not reflect their intrinsic value, indicating confidence in the long-term business outlook[103] Recognition and Awards - The company has received multiple awards, including being named "2024 China's Tea Industry 'Enterprise of the Year'" by Forbes and ranking among the "Top 10 Tea Brands" in China[54] - The company has been recognized for its ESG efforts, receiving the "Best Practice Award" in the daily consumer goods sector for 2022[59]

Financial Performance - In the first half of 2024, the company achieved revenue of RMB 811.3 million, a decrease of 3.7% compared to the same period in 2023, and recorded a profit of RMB 69.1 million, down 30.1% year-on-year[17]. - The company's revenue decreased by 3.7% from RMB 842.8 million in the six months ended June 30, 2023, to RMB 811.3 million in the same period of 2024[30]. - The group's tea sales revenue decreased by 6.4% from RMB 611.1 million for the six months ended June 30, 2023, to RMB 571.8 million for the six months ending June 30, 2024[33]. - Gross profit decreased by 8.3% from RMB 462.4 million to RMB 424.1 million, with the gross margin declining from 54.9% to 52.3% due to adjustments in tea product categories and a decrease in retail proportion[34]. - The group's net profit decreased by 30.1% from RMB 98.9 million to RMB 69.1 million, with the net profit margin dropping from 11.7% to 8.5% due to reduced revenue and gross margin[40]. - Basic and diluted earnings per share were both RMB 0.06, down from RMB 0.09 in the same period last year[80]. - The interim dividend declared is HKD 0.03 per share (equivalent to RMB 0.027), compared to HKD 0.05 per share (equivalent to RMB 0.046) for the same period last year[52]. - The total dividends paid for the six months ended June 30, 2024, amounted to RMB 120,669,000, compared to RMB 126,232,000 for the same period in 2023, representing a decrease of 4.5%[162]. Sales and Revenue Breakdown - Sales of tea accounted for 70.5% of total revenue in the first half of 2024, down from 72.5% in the same period of 2023, with revenue of RMB 571.8 million[31]. - Sales of tea food increased to RMB 110.1 million, representing 13.6% of total revenue, compared to RMB 107.8 million and 12.8% in the previous year[31]. - Revenue from tea food sales increased to RMB 110,100,000, up 2.4% from RMB 107,771,000 in the previous year[108]. - Revenue from tea utensils rose to RMB 101,728,000, an increase of 9.4% compared to RMB 93,020,000 in the same period last year[108]. Operational Developments - The company is actively expanding its customer loyalty programs and enhancing marketing strategies to improve operational efficiency and customer retention[17]. - The company is focusing on optimizing its sales network in China to enhance the coverage of its tea product sales[19]. - The company plans to expand its retail network in China, focusing on high-traffic areas in selected cities and increasing penetration in third- and fourth-tier cities[24]. - The company has established a food R&D department to develop diverse traditional foods, including pork crisps and instant bird's nest[22]. - The company is expanding its production capacity by increasing the number of processing bases, with existing facilities in Fujian, Sichuan, Zhejiang, Guangxi, and Guizhou provinces[27]. - The company continues to develop new tea-related products to meet changing consumer preferences and trends, including tea beverages under the "放牛斑" brand[24]. Cost Management and Financial Health - The company has implemented measures to control costs while improving employee welfare and training[17]. - Administrative expenses increased by 4.0% from RMB 137.7 million to RMB 143.2 million, primarily due to rising labor and depreciation costs[35]. - Cash and cash equivalents increased by 25.8% from RMB 275.1 million to RMB 346.1 million, primarily due to increased cash generated from operations and borrowings[40]. - Total bank borrowings rose from RMB 521.1 million to RMB 585.7 million, with the capital debt ratio increasing from 22.6% to 25.3% due to higher total borrowings and the inclusion of lease liabilities in total debt[41]. - The company has sufficient working capital and financial resources to support daily operations as of June 30, 2024[46]. Market Conditions and Future Outlook - The macroeconomic environment remains challenging with rising inflation and geopolitical tensions, impacting overall consumer spending[17]. - The company anticipates a gradual recovery in consumer demand driven by government policies aimed at boosting domestic consumption[17]. - The company expects the Chinese retail market to gradually recover from COVID-19 disruptions in the second half of 2024, aiming to maintain market share[22]. Shareholder Information - As of June 30, 2024, the total issued shares amounted to 1,086,130,460, including 35,000 shares repurchased for cancellation but not yet cancelled[64]. - The major shareholder, 周楠楠女士, holds 455,199,028 shares, which is 41.91% of the total shares[63]. - Discerning Group Limited holds 188,789,000 shares, representing 17.38% of the total shares[63]. - UBS TC (Jersey) Ltd. is the trustee for KCL Trust, which holds 378,273,000 shares, accounting for 34.83% of the total shares[63]. - The company has confirmed compliance with the standard code for securities trading by all directors for the six months ending June 30, 2024[67]. Corporate Governance - The company maintains high corporate governance standards and has complied with the corporate governance code as of June 30, 2024[66]. - The audit committee has reviewed the interim financial results for the six months ended June 30, 2024[74]. - The interim report will be available on the Hong Kong Stock Exchange and the company's website for public access[75].

[Cover and Financial Highlights](index=1&type=section&id=Cover%20and%20Financial%20Highlights) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) In H1 2024, key financial metrics declined, with revenue down 3.7%, gross profit down 8.3%, gross margin at 52.3%, and net profit decreasing 30.1% to RMB 69.1 million, with an interim dividend of HKD 0.03 per share H1 2024 Financial Highlights | Metric | H1 2024 | H1 2023 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | approx. RMB 811.3 million | approx. RMB 842.8 million | -3.7% | | Gross Profit | RMB 424.1 million | RMB 462.4 million | -8.3% | | Gross Margin | 52.3% | 54.9% | -2.6pp | | Profit | RMB 69.1 million | RMB 98.9 million | -30.1% | | Basic Earnings Per Share | RMB 0.06 | - | - | | Interim Dividend | HKD 0.03 per share | - | - | [Financial Statements](index=2&type=section&id=Financial%20Statements) [Interim Condensed Consolidated Statement of Comprehensive Income](index=2&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Comprehensive%20Income) H1 2024 revenue was RMB 811 million, down 3.7%; gross profit RMB 424 million, down 8.3%; operating profit decreased 22.6%, with profit for the period at RMB 69.1 million, down 30.1%, and basic EPS falling from RMB 0.09 to RMB 0.06 Key Items from Consolidated Statement of Comprehensive Income (Six Months Ended June 30) | Item (RMB thousand) | 2024 (Unaudited) | 2023 (Unaudited) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 811,278 | 842,760 | -3.7% | | Gross Profit | 424,050 | 462,360 | -8.3% | | Operating Profit | 110,767 | 143,154 | -22.6% | | Profit Before Income Tax | 99,819 | 137,571 | -27.4% | | Profit for the Period | 69,114 | 98,910 | -30.1% | | Basic Earnings Per Share (RMB) | 0.06 | 0.09 | -33.3% | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total assets were RMB 2.956 billion, slightly down from RMB 3.002 billion at year-end 2023; total liabilities increased to RMB 1.223 billion, and total equity decreased to RMB 1.733 billion, maintaining a stable asset structure Key Items from Consolidated Statement of Financial Position (RMB thousand) | Item | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 2,956,451 | 3,001,844 | -1.5% | | Total Liabilities | 1,223,253 | 1,216,132 | +0.6% | | Total Equity | 1,733,198 | 1,785,712 | -3.0% | [Notes to Financial Information](index=6&type=section&id=Notes%20to%20Financial%20Information) [Company Information and Accounting Policies](index=6&type=section&id=Company%20Information%20and%20Accounting%20Policies) The Group primarily produces and sells tea, tea food, and tea ware in China; financial information is prepared under HKAS 34, with consistent accounting policies and adoption of new and revised standards - The Group's principal activities are the classification, packaging, production, and sale of tea, tea food, tea ware, and pre-packaged food, with production facilities and major customers located in China[9](index=9&type=chunk) - The interim financial information is prepared in accordance with HKAS 34, with accounting policies consistent with those used in the 2023 annual financial statements, and several new and revised accounting standards adopted from January 1, 2024[10](index=10&type=chunk)[11](index=11&type=chunk)[12](index=12&type=chunk) [Revenue and Segment Information](index=8&type=section&id=Revenue%20and%20Segment%20Information) Group revenue primarily comes from tea, tea food, and tea ware segments; H1 2024 tea segment revenue decreased 6.4% to RMB 572 million, driving overall decline, while tea food and tea ware grew 2.1% and 9.4% respectively; tea segment profit contribution was largest but also significantly declined Revenue by Segment (Six Months Ended June 30) | Segment (RMB thousand) | 2024 | 2023 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Sales of Tea | 571,793 | 611,059 | -6.4% | | Sales of Tea Food | 110,100 | 107,771 | +2.2% | | Sales of Tea Ware | 101,728 | 93,020 | +9.4% | | Others | 27,657 | 30,910 | -10.5% | | **Total** | **811,278** | **842,760** | **-3.7%** | Segment Results (Six Months Ended June 30) | Segment (RMB thousand) | 2024 | 2023 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Tea | 91,056 | 127,038 | -28.3% | | Tea Food | 11,463 | 14,741 | -22.2% | | Tea Ware | 8,717 | 7,788 | +11.9% | | Other Segments | (1,778) | 552 | N/A | | **Total** | **109,458** | **150,119** | **-27.1%** | [Analysis of Key Profit and Loss Items](index=11&type=section&id=Analysis%20of%20Key%20Profit%20and%20Loss%20Items) Other income significantly increased by 95.6% due to higher government subsidies; net other losses narrowed considerably due to reduced losses from asset disposals; income tax expense decreased by 20.6% in line with lower profit before tax - Other income increased from **RMB 7.5 million** to **RMB 14.7 million**, a year-on-year growth of **95.6%**, primarily due to government subsidies increasing from **RMB 2.3 million** to **RMB 6.6 million**[21](index=21&type=chunk) - Net other losses significantly decreased from **RMB 2.0 million** to **RMB 0.2 million**, mainly due to reduced net losses from the disposal of property, plant, and equipment[22](index=22&type=chunk) - Income tax expense decreased from **RMB 38.7 million** to **RMB 30.7 million**, a year-on-year reduction of **20.6%**, consistent with the decline in profit before income tax[23](index=23&type=chunk) [Earnings Per Share and Dividends](index=13&type=section&id=Earnings%20Per%20Share%20and%20Dividends) Affected by declining net profit, H1 2024 basic earnings per share decreased to RMB 0.06, down from RMB 0.09 in the prior year; the Board declared an interim dividend of HKD 0.03 per share, totaling approximately RMB 29.3 million Basic Earnings Per Share Calculation | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit Attributable to Shareholders (RMB thousand) | 69,114 | 98,910 | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 1,086,241 | 1,091,242 | | **Basic Earnings Per Share (RMB)** | **0.06** | **0.09** | - The Board declared an interim dividend of **HKD 0.03** per share (approximately **RMB 0.027**) for 2024 on August 19, 2024, totaling approximately **RMB 29.3 million**[28](index=28&type=chunk) [Analysis of Key Balance Sheet Items](index=14&type=section&id=Analysis%20of%20Key%20Balance%20Sheet%20Items) During the period, the company repurchased and cancelled shares, impacting share capital and other reserves; trade receivables and payables both decreased; total bank borrowings increased from RMB 521 million to RMB 586 million, mainly due to increased short-term borrowings - As of June 30, 2024, the company cancelled **2,247,000** repurchased shares, resulting in a decrease of **RMB 0.184 million** in share capital and **RMB 9.74 million** in other reserves[36](index=36&type=chunk)[38](index=38&type=chunk)[39](index=39&type=chunk) - Net trade receivables decreased from **RMB 241 million** to **RMB 171 million**, and total trade payables decreased from **RMB 117 million** to **RMB 81 million**, indicating changes in receivables and payables management[33](index=33&type=chunk)[40](index=40&type=chunk) - Total bank borrowings increased from **RMB 521 million** to **RMB 586 million**, with short-term borrowings increasing from **RMB 481 million** to **RMB 516 million**, and long-term borrowings from **RMB 40 million** to **RMB 70 million**[42](index=42&type=chunk) [Management Discussion and Analysis](index=20&type=section&id=Management%20Discussion%20and%20Analysis) [Business Review and Outlook](index=20&type=section&id=Business%20Review%20and%20Outlook) In H1 2024, Group revenue and profit declined due to weak consumer markets; the company responded by optimizing its sales network (net reduction of 9 stores) and product structure; future plans include further retail network optimization, brand enhancement, new product development, and capacity expansion - H1 2024 revenue decreased by **3.7%** and profit by **30.1%**, primarily due to a weak consumer market and overall economic conditions affected by multiple global factors[45](index=45&type=chunk) - The company continued to adjust and optimize its sales network, with a total of **1,368** retail stores and specialty counters as of June 30, 2024, a net decrease of **9** from year-end 2023[46](index=46&type=chunk) - Future strategies include: continuing to adjust the retail network and penetrate third and fourth-tier cities; enhancing brand reputation through marketing activities; developing new tea-related products; and expanding production capacity (e.g., building white tea packaging facilities) while strengthening quality control[48](index=48&type=chunk)[49](index=49&type=chunk) [Financial Review](index=23&type=section&id=Financial%20Review) Total revenue decreased by 3.7%, mainly due to a 6.4% decline in tea sales, which accounted for 70.5% of total revenue, while tea food and tea ware sales grew 2.1% and 9.4% respectively; gross margin fell from 54.9% to 52.3% due to product mix and lower retail contribution; net profit margin decreased from 11.7% to 8.5% Revenue by Product Category (Six Months Ended June 30) | Product Category | 2024 Revenue (RMB thousand) | Proportion | 2023 Revenue (RMB thousand) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Sales of Tea | 571,793 | 70.5% | 611,059 | 72.5% | | Sales of Tea Food | 110,100 | 13.6% | 107,771 | 12.8% | | Sales of Tea Ware | 101,728 | 12.5% | 93,020 | 11.0% | | Others | 27,657 | 3.4% | 30,910 | 3.7% | | **Total** | **811,278** | **100.0%** | **842,760** | **100.0%** | - The **6.4%** decrease in tea sales revenue was the primary reason for the overall revenue decline, attributed to a weak consumer market; tea food and tea ware sales revenue grew by **2.1%** and **9.4%** respectively, benefiting from changes in product structure and successful promotional activities[53](index=53&type=chunk) - Gross margin decreased from **54.9%** to **52.3%**, primarily due to adjustments in tea product categories and a reduced proportion of retail business[55](index=55&type=chunk) - Affected by declining revenue and gross margin, the Group's net profit margin decreased from **11.7%** in the prior period to **8.5%**[63](index=63&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) Cash and cash equivalents increased to RMB 346 million; total bank borrowings rose to RMB 586 million, increasing the capital gearing ratio from 22.6% to 25.3%; trade receivables turnover days improved from 80 to 67 days, while inventory turnover days remained high at 471 days - Cash and cash equivalents increased from **RMB 275 million** to **RMB 346 million**, primarily due to cash inflows from operating activities and increased borrowings[64](index=64&type=chunk) - The capital gearing ratio (total debt/total capital) increased from **22.6%** to **25.3%**, mainly due to an increase in total borrowings[65](index=65&type=chunk) Working Capital Turnover Days | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Trade Receivables Turnover Days | 67 | 80 | | Trade Payables Turnover Days | 46 | 55 | | Inventory Turnover Days | 471 | 472 | [Risk Management and Human Resources](index=29&type=section&id=Risk%20Management%20and%20Human%20Resources) The Group's business is primarily conducted in RMB, with no significant foreign exchange risk identified; as of period-end, the Group had 3,509 employees, and staff costs slightly increased year-on-year, indicating a stable human resources situation - The Group's business is primarily conducted in RMB, and the Directors believe the Group is not exposed to significant foreign exchange risk, with no hedging activities currently undertaken[69](index=69&type=chunk) - As of June 30, 2024, the Group had **3,509** employees, with staff costs for the first half of the year totaling **RMB 163 million**, a year-on-year increase of **1.4%**[69](index=69&type=chunk) [Other Information](index=30&type=section&id=Other%20Information) [Share Repurchases](index=30&type=section&id=Share%20Repurchases) In H1 2024, the company repurchased 248,000 shares on the Stock Exchange for a total consideration of approximately HKD 1.05 million; the Board believes the current share price does not reflect its intrinsic value, and repurchases aim to create shareholder value H1 2024 Share Repurchase Details | Month | Total Shares Repurchased | Price Range Per Share (HKD) | Total Consideration (HKD) | | :--- | :--- | :--- | :--- | | January | 13,000 | 4.60 - 4.79 | 60,970 | | March | 89,000 | 3.65 - 3.90 | 335,790 | | April | 68,000 | 4.00 - 4.60 | 293,480 | | May | 39,000 | 4.55 - 4.70 | 179,180 | | June | 39,000 | 4.50 - 4.61 | 179,030 | | **Total** | **248,000** | | **1,048,450** | - The Board believes that share repurchases reflect the company's confidence in its long-term business prospects and that the current share price does not reflect its intrinsic value[71](index=71&type=chunk) [Corporate Governance and Dividend Distribution](index=31&type=section&id=Corporate%20Governance%20and%20Dividend%20Distribution) The company complied with the Corporate Governance Code during the reporting period; the Board resolved to declare an interim dividend of HKD 0.03 per share, with relevant record and payment dates announced - The company complied with the Corporate Governance Code as set out in the Listing Rules for the six months ended June 30, 2024[73](index=73&type=chunk) - The Board resolved to declare an interim dividend of **HKD 0.03** per share, with the record date set for September 9, 2024, and payment expected on or about September 30, 2024[75](index=75&type=chunk)[76](index=76&type=chunk) [Review of Accounts](index=32&type=section&id=Review%20of%20Accounts) The company's Audit Committee reviewed the unaudited interim results, and external auditor PwC also conducted a review of the interim financial information in accordance with relevant standards - The Group's unaudited interim results for the six months ended June 30, 2024, have been reviewed by the company's Audit Committee and by external auditor PricewaterhouseCoopers in accordance with Hong Kong Standard on Review Engagements 2410[77](index=77&type=chunk)