Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 6,692.1 million, a decrease of 4.1% compared to RMB 6,980.8 million for the same period in 2023[2]. - Gross profit for the same period was RMB 4,072.3 million, down 4.5% from RMB 4,262.4 million year-on-year[2]. - EBITDA decreased by 21.4% to RMB 1,098.4 million from RMB 1,397.9 million in the previous year[2]. - Adjusted comparable EBITDA margin was 17.0%, down 1.8 percentage points from 18.8% in the prior year[2]. - Net profit for the period was RMB 305.8 million, a significant decline of 49.7% compared to RMB 608.0 million in the same period last year[2]. - Adjusted comparable net profit decreased by 32.4% to RMB 347.2 million from RMB 513.4 million year-on-year[2]. - Total comprehensive income for the period was RMB 265.2 million, down from RMB 724.2 million in the previous year[7]. Assets and Liabilities - Non-current assets totaled RMB 14,612.5 million as of June 30, 2024, compared to RMB 14,908.6 million at the end of 2023[8]. - Current assets decreased to RMB 5,719.9 million from RMB 5,133.4 million at the end of 2023[8]. - Current liabilities increased to RMB 9,209.2 million from RMB 8,441.2 million at the end of 2023[8]. - Total assets minus current liabilities as of June 30, 2024, is RMB 11,123,153, a decrease from RMB 11,600,781 as of December 31, 2023[9]. - Non-current liabilities total RMB 4,663,365 as of June 30, 2024, down from RMB 5,305,557 as of December 31, 2023[9]. - As of June 30, 2024, the group recorded net current liabilities of RMB 3,489.3 million, primarily from bank loans and other borrowings totaling RMB 5,555.0 million due within the next twelve months[15]. Cash Flow and Financing - Cash flow from operating activities for the six months ended June 30, 2024, is RMB 1,052,540, a significant increase from RMB 22,069 in the same period of 2023[11]. - The company reported a decrease in pre-tax profit cash flow from operating activities to RMB 523,939 for the six months ended June 30, 2024, compared to RMB 903,152 in the previous year[10]. - The company issued priority notes generating RMB 906,794 in cash flow from financing activities during the six months ended June 30, 2024, compared to RMB 407,985 in the same period of 2023[11]. - The net cash flow used in financing activities was RMB (86,704) for the six months ended June 30, 2024, an improvement from RMB (205,657) in the previous year[12]. - The company has secured refinancing commitments totaling USD 560.0 million (approximately RMB 3,991.0 million) from various financial institutions to manage its borrowings[15]. Segment Performance - For the six months ended June 30, 2024, total revenue from external customers reached RMB 6,692.1 million, with the infant formula segment contributing RMB 1,798.4 million[19]. - The segment performance for infant formula reported a profit of RMB 1,056.9 million, while the adult nutrition segment reported RMB 394.6 million[19]. - Revenue from Mainland China was RMB 4,541,353 thousand, down 10.54% from RMB 5,076,109 thousand in the previous year[22]. - Revenue from the infant nutrition and care products segment in mainland China decreased by 23.2% year-on-year to RMB 2,240.2 million for the six months ended June 30, 2024[60]. - Revenue from infant formula in mainland China declined by 19.0% year-on-year to RMB 1,732.4 million, attributed to ongoing systemic challenges in the industry and intense competition following the transition to the new national standard[60]. Taxation - The company reported a total tax expense of RMB 218,136 thousand for the six months ended June 30, 2024, compared to RMB 295,138 thousand for the same period in 2023, reflecting a decrease of 26.1%[28]. - The corporate income tax rate for the group in mainland China is set at 25% as of June 30, 2023[29]. - Guangzhou Heai and H&H Guangzhou Health Products Co., Ltd. are recognized as high-tech enterprises, allowing them to pay corporate income tax at a reduced rate of 15% for the periods 2022-2024 and 2023-2025 respectively[29]. Dividends and Shareholder Returns - The interim dividend declared for the six months ended June 30, 2024, is HKD 0.30 per share, totaling approximately RMB 173,581,000, compared to RMB 256,700,000 for the same period in 2023[35]. - The company's profit attributable to equity holders for the six months ended June 30, 2024, was RMB 305,803,000, a decrease from RMB 608,014,000 for the same period in 2023[36]. Operational Strategy and Market Position - The company plans to focus on market expansion and new product development to drive future growth[21]. - The company aims to expand its market share in the high-end infant formula segment in mainland China, ranking third in the ultra-high-end category[42]. - The company is focused on consumer education and acquiring new customers to drive future growth in the infant formula segment[48]. - The company continues to expand its product offerings, including Swisse Plus+, Swisse Me, and Little Swisse, to better meet diverse consumer demands[45]. Corporate Governance - The company has adhered to all corporate governance codes as of June 30, 2024[91]. - The Audit Committee is responsible for recommending the appointment, reappointment, and removal of external auditors to the Board[94]. - The interim financial statements for the six months ending June 30, 2024, have been reviewed by the independent auditor, Ernst & Young[95].
H&H国际控股(01112) - 2024 - 中期业绩