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味丹国际(02317) - 2024 - 中期财报
02317VEDAN INT'L(02317)2024-09-12 11:01

Financial Performance - Revenue for the first half of 2024 was 185.155million,adecreaseof2.0185.155 million, a decrease of 2.0% compared to 188.909 million in the same period of 2023[6] - Gross profit increased by 46.5% to 32.903millioninH12024,upfrom32.903 million in H1 2024, up from 22.456 million in H1 2023[6] - Profit attributable to owners of the company was 8.331millioninH12024,asignificantimprovementfromalossof8.331 million in H1 2024, a significant improvement from a loss of 1.468 million in H1 2023[6] - Basic earnings per share improved to 0.55 US cents in H1 2024, compared to a loss of 0.10 US cents per share in H1 2023[6] - Group's revenue for the period reached approximately US185million,downbyUS185 million, down by US3.75 million or 2.0% from the previous period[16] - Gross profit increased by 46.5% to US32.9million,withagrossprofitmarginof17.832.9 million, with a gross profit margin of 17.8%, primarily due to a significant decline in energy costs[16] - Net profit improved to US8.34 million from a loss of US1.47millioninthepreviousperiod,withanetprofitmarginof4.51.47 million in the previous period, with a net profit margin of 4.5%[16] - Revenue for the six months ended 30 June 2024 was 185.155 million, a decrease from 188.909millioninthesameperiodin2023[106]−Grossprofitforthesixmonthsended30June2024was188.909 million in the same period in 2023[106] - Gross profit for the six months ended 30 June 2024 was 32.903 million, compared to 22.456millionin2023[106]−Operatingprofitforthesixmonthsended30June2024was22.456 million in 2023[106] - Operating profit for the six months ended 30 June 2024 was 12.371 million, a significant increase from 1.417millionin2023[106]−Netprofitattributabletoownersofthecompanyforthesixmonthsended30June2024was1.417 million in 2023[106] - Net profit attributable to owners of the company for the six months ended 30 June 2024 was 8.331 million, compared to a net loss of 1.468millionin2023[106]−Basicanddilutedearningspershareforthesixmonthsended30June2024were1.468 million in 2023[106] - Basic and diluted earnings per share for the six months ended 30 June 2024 were 0.55, compared to a loss of 0.10persharein2023[106]−Totalcomprehensiveprofitforthesixmonthsended30June2024was0.10 per share in 2023[106] - Total comprehensive profit for the six months ended 30 June 2024 was 7.949 million, compared to a comprehensive loss of 2.875millionin2023[108]−Comprehensiveincomefortheperiodended30June2024was2.875 million in 2023[108] - Comprehensive income for the period ended 30 June 2024 was 7,949 thousand, with a profit of 8,331thousandandothercomprehensivelossof8,331 thousand and other comprehensive loss of 395 thousand[111] - Basic earnings per share improved to 0.0055in2024fromalossof0.0055 in 2024 from a loss of 0.001 per share in 2023, reflecting a turnaround in profitability[155] Market and Revenue Breakdown - Vietnam remains the company's largest market, contributing 57.0% of total revenue, followed by ASEAN countries at 19.0% and China at 15.7%[10] - MSG and seasonings segment accounted for 43.0% of total revenue, while specialty chemicals contributed 18.1%[11] - Revenue in the PRC market increased by 6.9% due to stabilized seasoning sales and expanded distribution of products like coffee beans[17] - Revenue in Japan increased by 2.6% despite weak yen and fierce competition, driven by promotion of new high-end modified starch products[17] - Revenue in the US market fell by 11.5% due to increased interest rates, weak consumption sentiment, and container shipping constraints[17] - Revenue from MSG and seasoning products decreased by 6.4% due to weak economies and low-price competition in major markets[19] - Revenue from starch and starch sugar products increased by 6.9%, driven by new product specifications and high-value-added products[19] - Revenue from distributed products, including coffee beans, increased by 18.5% due to market segmentation and demand fulfillment[19] - Vietnam's GDP growth rate in the first half of 2024 was 6.42%, meeting the government's target of 6.0-6.5%, with a trade surplus of 11.63billion[28]−TheGroup′srevenueinthefirsthalfof2024decreasedby2.011.63 billion[28] - The Group's revenue in the first half of 2024 decreased by 2.0% to 185.155 million, mainly due to weak consumer sentiment and demand[31] - Vietnam remains the largest market with revenue of 79.505million,thoughitdecreasedby3.479.505 million, though it decreased by 3.4% compared to the first half of 2023[33][34] - Japan's revenue increased by 2.6% to 35.218 million, with its share of total revenue rising from 18.2% to 19.0%[35][37] - China's revenue grew by 6.9% to 29.126million,withitsshareoftotalrevenueincreasingfrom14.429.126 million, with its share of total revenue increasing from 14.4% to 15.7%[38][42] - ASEAN market (excluding Vietnam) revenue increased by 1.9% to 14.813 million, with its share of total revenue rising from 7.7% to 8.0%[39][42] - US market revenue declined by 11.5% to 13.011million,withitsshareoftotalrevenuedecreasingfrom7.813.011 million, with its share of total revenue decreasing from 7.8% to 7.0%[40][42] - Other markets (Taiwan, Korea, EU) revenue decreased by 14.6% to 13.482 million, with its share of total revenue falling from 8.4% to 7.3%[41][42] - Revenue from MSG and seasoning-related products decreased by 6.4% to 105.6millioninH12024,contributing57.0105.6 million in H1 2024, contributing 57.0% to total revenue, down from 59.7% in H1 2023 due to weakened demand and increased competition in markets like Vietnam, Japan, China, and ASEAN[44][46] - Modified starch, native starch, and starch sugar revenue increased by 6.9% to 33.4 million in H1 2024, driven by a rebound in starch sugar sales, despite challenges from rising US dollar interest rates and conservative customer orders[45][47] - Fertilizers and feed products revenue decreased by 5.4% to 16.4millioninH12024,withitsshareoftotalrevenuedroppingfrom9.216.4 million in H1 2024, with its share of total revenue dropping from 9.2% to 8.9%, impacted by falling international fertilizer and urea prices[48] - Revenue from other products grew by 18.5% to 19.7 million in H1 2024, increasing its share of total revenue from 8.8% to 10.6%, driven by the recovery of China's consumer market post-pandemic and increased sales of coffee beans and water products[49][52] - Specialty chemicals revenue decreased by 7.7% to 9.96millioninH12024,withitsshareoftotalrevenuedroppingfrom5.79.96 million in H1 2024, with its share of total revenue dropping from 5.7% to 5.4%, due to weak demand and price reductions in soda and hydrochloric acid products[53] Economic and Market Conditions - Vietnam's GDP grew by 6.42% in the first half of 2024, within the expected range of 6.0%-6.5%[15] - The global economic recovery remained sluggish due to international geopolitics, inflation, and US interest rate hikes, impacting consumer sentiment[15] - Raw material prices remained high despite some easing, affecting the company's profit recovery[15] - The company's performance in H1 2024 was below expectations due to weak economic conditions and conservative consumer sentiment[15] - Vietnam's import and export trade volume increased by 14.5% in the first half of 2024 compared to the same period in 2023[28] - The average Consumer Price Index (CPI) in Vietnam increased by 4.08% year-on-year in the first half of 2024, below the policy target of 4.5%[27] - Vietnam's government set an inflation control target of 4.5% and an economic growth target of 6.0% to 6.5% for 2024, focusing on green growth and sustainable development[70] - China's economic growth rate reached 5% in the first half of 2024, but challenges remain due to industrial and population aging, making a return to pre-COVID levels difficult[71] - Vietnam's 2024 inflation control target is 4.5%, with an economic growth target of 6.0% to 6.5%[72] - China's economic growth rate in the first half of 2024 reached 5% despite challenges[72] Operational and Strategic Initiatives - The Group is accelerating the development of new products and forming strategic alliances with internationally renowned enterprises to explore new business areas[22] - The Group plans to expand product lines, optimize product mix, and increase the proportion of high-value-added products to enhance market share and profitability[73] - The Group aims to actively expand into new channels and markets, adjust product positioning, and strengthen brand competitiveness[73] - The Group will continue to advance production technologies, improve efficiency, and achieve cost reduction while maintaining quality[73] - The Group will adopt a "co-opetition" strategy to leverage its Vietnam production base and develop ASEAN and FTA markets[73] - The Group plans to accelerate strategic alliances and cross-industry cooperation to expand business scale and performance[73] - The Group will establish a strategic organizational structure and dedicated teams to enhance efficiency and seek strategic mergers and acquisitions[74] - The Group will expedite the introduction of electronic processes and big data management systems to optimize business processes[74] - The Group remains cautiously optimistic and will explore new products and businesses through strategic alliances to drive overall operational growth[75] Financial Position and Cash Flow - Total assets as of 30 June 2024 were 379.945 million, a slight decrease from 383.510millionasof31December2023[105]−Totalequityasof30June2024was383.510 million as of 31 December 2023[105] - Total equity as of 30 June 2024 was 299.233 million, an increase from 294.783millionasof31December2023[105]−Totalcurrentliabilitiesasof30June2024were294.783 million as of 31 December 2023[105] - Total current liabilities as of 30 June 2024 were 75.271 million, a decrease from 82.357millionasof31December2023[105]−Currencytranslationdifferencesresultedinalossof82.357 million as of 31 December 2023[105] - Currency translation differences resulted in a loss of 395,000 for the six months ended 30 June 2024, compared to a loss of 1.410millionin2023[108]−Netcashusedinoperatingactivitiesforthesixmonthsended30June2024was1.410 million in 2023[108] - Net cash used in operating activities for the six months ended 30 June 2024 was 70 thousand, compared to 2,074thousandinthesameperiodin2023[113]−Netcashgeneratedfrominvestingactivitiesforthesixmonthsended30June2024was2,074 thousand in the same period in 2023[113] - Net cash generated from investing activities for the six months ended 30 June 2024 was 11,142 thousand, a significant improvement from a net cash used of 21,501thousandinthesameperiodin2023[113]−Netcashusedinfinancingactivitiesforthesixmonthsended30June2024was21,501 thousand in the same period in 2023[113] - Net cash used in financing activities for the six months ended 30 June 2024 was 1,441 thousand, compared to net cash generated of 1,733thousandinthesameperiodin2023[113]−Cashandcashequivalentsattheendoftheperiodwere1,733 thousand in the same period in 2023[113] - Cash and cash equivalents at the end of the period were 38,620 thousand, an increase from 29,676thousandatthebeginningoftheperiod[113]−Thecompanypaiddividendsof29,676 thousand at the beginning of the period[113] - The company paid dividends of 3,499 thousand during the period[111] - The company's cash and cash equivalents decreased by 7.5% to 46,558,000,whiletotalborrowingsincreasedby4.446,558,000, while total borrowings increased by 4.4% to 45,582,000, with 85.3% denominated in VND[63] - Trade receivables increased by 3.3% to 34,880,000,andtotalinventoryroseby8.034,880,000, and total inventory rose by 8.0% to 148,762,000 compared to the end of 2023[63] - The VND depreciated from VND23,866/USD at the end of 2023 to VND25,863/USD in June 2024 due to interest rate cuts in Vietnam and a widening USD/VND exchange rate differential[64][67] - Basic earnings per share for the period were 0.55 US cents, with an interim dividend of 0.273 US cents per share and a payout ratio of 49.6%[66][68] - An interim dividend of 0.273 US cents per share was declared, amounting to 4.166million,anincreasefrom0.229UScentspershare(4.166 million, an increase from 0.229 US cents per share (3.487 million) in 2023[157] Raw Materials and Costs - Cassava and starch prices remained high in H1 2024 due to reduced output in Thailand, Vietnam, and Cambodia, but the company secured raw materials at competitive prices to control production costs[54][56] - Global molasses production declined for the second consecutive year to 64.17 million tons in 2022/23, with prices remaining high due to demand for ethanol production and India's 50% export tax[55][57] - International crude oil prices stabilized at 70−70-90 per barrel in 2024, with OPEC+ maintaining sufficient spare capacity to balance supply and demand[58] - Vietnam's electricity tariffs increased by 7.6% in 2023, prompting the company to adopt a cogeneration power system to ensure stable electricity supply[60] - Coal prices remained stable at high levels in 2024 due to stable global supply of natural gas, crude oil, and coal, with the company closely monitoring industry changes[61] - Vietnam's electricity prices increased by approximately 7.6% in 2023, with further adjustments planned every 3 months starting from 2024 to balance interests[61] - International crude oil prices stabilized between 70to70 to 90 per barrel in 2024, supported by OPEC's spare capacity to regulate supply and demand[62] Corporate Governance and Shareholding - King International Limited holds 169,730,196 shares of the company, representing 11.15% of the total issued shares[86] - Billion Power Limited, a wholly-owned subsidiary of Taiwan Vedan, holds 512,082,512 shares, representing 33.62% of the total issued shares[86][91] - Concord Worldwide Holdings Limited and High Capital Investments Limited each hold 127,297,646 shares, representing 8.36% of the total issued shares[86] - The company had a total of 3,930 employees as of 30 June 2024, with 3,719 employed by subsidiaries in Vietnam, 184 by subsidiaries in China, 18 by the Taiwan Branch, and 9 by the Cambodia Branch[90] - The company did not purchase, sell, or redeem any of its shares during the six months ended 30 June 2024[81] - The company confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers during the reporting period up to 30 June 2024[89][92] - The company complied with the Corporate Governance Code provisions of the Hong Kong Stock Exchange Listing Rules, except for the chairman's absence from the annual general meeting due to business commitments[90] - The company's employees are remunerated based on work performance, professional experience, and industry practices, with periodic reviews by management[90] - The interim dividend for the six months ended 30 June 2024 is declared at 0.273 US cents per share, equivalent to 2.11848 HK cents per share based on the exchange rate of US1.00toHK1.00 to HK7.76[95][98] - The register of members will be closed from 16 September 2024 to 20 September 2024, with the interim dividend payable on 4 October 2024 to shareholders registered by 20 September 2024[96][99] - The unaudited interim condensed consolidated financial information for the six months ended 30 June 2024 has been reviewed by PricewaterhouseCoopers in accordance with Hong Kong Standard on Review Engagements 2410[94][97] - The Audit Committee, comprising four Independent Non-executive Directors, reviewed the interim results and internal controls for the six months ended 30 June 2024[94][97] - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[100][102] Financial Risks and Liabilities - The company's financial risk management policies remained unchanged since the year-end, with no material changes in the contractual undiscounted cash flows for financial liabilities[128] - The company is exposed to various financial risks, including market risk (currency risk, fair value interest-rate risk, and cash flow interest-rate risk), credit risk, and liquidity risk[128] - The company's financial liabilities, including trade and other receivables, prepayments, and cash equivalents, are assumed to approximate their fair values due to their short maturities[128] - The company's directors are assessing the financial impact of adopting new accounting standards, amendments, and interpretations that will become effective after 1 January 2024[122] - Total trade payables as of 30 June 2024 were 9,934,000,with9,934,000, with 8,731,000 due within 0-30 days and 1,203,000duewithin31−90days[143]−Totalbankborrowingsincreasedto1,203,000 due within 31-90 days[143] - Total bank borrowings increased to 45,582,000 as of 30 June 2024, up from 43,654,000attheendof2023[145]−TheGroup′sunutilizedborrowingfacilitiesamountedto43,654,000 at the end of 2023[145] - The Group's unutilized borrowing facilities amounted to 164,591,000 as of 30 June 2024, with 114,313,000securedbycorporateguarantees[149]−Netexchangegainscontributed114,313,000 secured by corporate guarantees[149] - Net exchange gains contributed 1,443,000 to other gains in the first half of 2024, a significant increase from 46,000inthesameperiodof2023[151]−TheGroup′stotalborrowingfacilities,includingtradefinanceandgeneralbankingfacilities,reached46,000 in the same period of 2023[151] - The Group's total borrowing facilities, including trade finance and general banking facilities, reached 210,173,000 as of 30 June 2024, up from 184,290,000attheendof2023[150]−Long−termbankborrowingsdecreasedto184,290,000 at the end of 2023[150] - Long-term bank borrowings decreased to 1,328,000 as of 30 June 2024, down from 1,992,000attheendof2023[145]−Short−termbankborrowingsincreasedto1,992,000 at the end of 2023[145] - Short-term bank borrowings increased to 44,254,000 as of 30 June 2024, up from 41,662,000attheendof2023[145]−TheGroup′sbankborrowingswereprimarilydenominatedinVietnamesedong(41,662,000 at the end of 2023[145] - The Group's bank borrowings were primarily denominated in Vietnamese dong (38,892,000) and US dollars (2,656,000)asof30June2024[147]OperationalCostsandExpenses−Totalcostofsales,sellinganddistributionexpenses,andadministrativeexpensesdecreasedto2,656,000) as of 30 June 2024[147] Operational Costs and Expenses - Total cost of sales, selling and distribution expenses, and administrative expenses decreased to 174.138 million in 2024 from 187.757millionin2023,reflectingareductioninoveralloperationalcosts[152]−Netfinancecostsimprovedsignificantly,decreasingto187.757 million in 2023, reflecting a reduction in overall operational costs[152] - Net finance costs improved significantly, decreasing to 418,000 in 2024 from 1.44millionin2023,primarilyduetolowerinterestexpensesonbankborrowingsandleaseliabilities[153]−Incometaxexpenseincreasedto1.44 million in 2023, primarily due to lower interest expenses on bank borrowings and lease liabilities[153] - Income tax expense increased to 3.147 million in 2024 from $1.