Financial Performance - For the six months ended September 30, 2023, the revenue was approximately HKD 326.8 million, an increase of about 38.0% compared to HKD 236.8 million for the same period in 2022[24]. - The operating profit for the same period was approximately HKD 85.8 million, representing an increase of about 159.2% from HKD 33.1 million in the previous year[24]. - Profit attributable to equity holders for the period was approximately HKD 62.5 million, up about 189.4% from HKD 21.6 million in the same period last year[24]. - The total comprehensive income for the period was HKD 61.9 million, compared to HKD 16.6 million in the previous year[26]. - The company reported a total profit of HKD 64.5 million for the period, compared to HKD 23.1 million in the previous year[28]. - Basic and diluted earnings per share were HKD 6.87, compared to HKD 2.41 in the same period last year[29]. - Gross profit for the same period was HKD 171,122,000, up from HKD 85,543,000, indicating a significant improvement in profitability[31]. - Profit before tax reached HKD 80,734,000, a substantial rise from HKD 28,657,000, marking an increase of 182%[31]. - Net profit for the period was HKD 64,534,000, compared to HKD 23,101,000 in the prior year, showing an increase of 179%[31]. - Adjusted EBITDA for the six months ended September 30, 2023, was HKD 109,288,000, up from HKD 56,682,000 in the prior year, representing a 93% increase[148]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.0345 per share, totaling approximately HKD 31.0 million, compared to HKD 0.005 per share and HKD 4.5 million in the same period last year[24]. - The interim dividend declared for the six months ending September 30, 2023, is HKD 3.45 per ordinary share, totaling approximately HKD 31.0 million, compared to HKD 0.5 per share and approximately HKD 4.5 million for the same period last year[195]. - The interim dividend will be paid on December 28, 2023, to shareholders on record as of December 12, 2023[195]. - The company will suspend share transfer registration from December 11, 2023, to December 12, 2023, to determine eligibility for the interim dividend[199]. - All transfer documents must be submitted by December 8, 2023, at 4:30 PM[199]. Assets and Liabilities - Total assets as of September 30, 2023, were HKD 1,211.3 million, compared to HKD 1,072.0 million as of March 31, 2023[7]. - The net asset value increased to HKD 1,050.3 million from HKD 1,031.0 million year-on-year[12]. - The total equity attributable to the company's equity holders increased to HKD 1,002,773,000 from HKD 985,509,000[36]. - Trade receivables amounted to HKD 175.79 million as of September 30, 2023, compared to HKD 110.66 million as of March 31, 2023[77]. - Trade payables totaled HKD 114.92 million as of September 30, 2023, up from HKD 82.46 million as of March 31, 2023[75]. - The group’s net capital debt ratio increased from 0.3% as of March 31, 2023, to 1.0% as of September 30, 2023, primarily due to dividend payments and bank loan repayments[185]. - Bank loans decreased from HKD 155,000,000 as of March 31, 2023, to HKD 125,000,000 as of September 30, 2023, due to partial repayment[160]. Market and Business Development - The company anticipates continued growth in the Hong Kong retail market driven by the recovery of inbound tourism and government-led economic measures[61]. - The demand for traditional Chinese medicine is expected to grow significantly, supported by government policies and increased consumer awareness[60]. - The company is actively developing new products in the concentrated Chinese medicine granules segment to meet rising demand[65]. - The company completed the acquisition of two health supplement brands, Seasons and Slimming Expert, further expanding its market share in the health supplement retail sector[109]. - The company is preparing to launch a series of new products next year to meet the evolving health needs of consumers, enhancing its product portfolio and profitability[109]. - The company is actively exploring partnerships with clinics in China to facilitate patient referrals and testing options in Macau[110]. - The Tmall flagship store for the proprietary brand is set to launch in Q4 2023, aimed at enhancing brand visibility in mainland China[122]. - The company is adjusting its product mix to meet changing consumer preferences and strengthening its commercial execution to optimize results[111]. Marketing and Sales Performance - The company reported a significant increase in sales of traditional Chinese medicine and cosmetics, with growth rates of 32.5% and 39.3% respectively in the first half of 2023[88]. - The brand healthcare business recorded total revenue of HKD 326.8 million, representing a significant growth of 38.0% year-on-year[89]. - The brand drug segment achieved a remarkable revenue growth of 85.4%, primarily driven by the outstanding performance of the He Ji Gong product line[100]. - The brand Chinese medicine segment recorded an overall revenue increase of 14.3%, mainly due to the significant growth of the Bao Ji Wan product and the sustained strong momentum in the concentrated Chinese medicine granules business[104]. - The health supplement division achieved a remarkable 107.1% growth in sales, attributed to effective marketing and sales efforts post-pandemic[114]. - The company's effective brand management strategy significantly boosted sales revenue and profit margins, benefiting from the recovery of retail markets post-pandemic[98]. - The He Ji Gong brand saw a substantial increase in sales, attributed to successful marketing campaigns and the easing of pandemic-related restrictions[96]. - The company's marketing and promotional activities may not always achieve success, and negative publicity could adversely affect its business[183]. - The brand's marketing efforts, including sponsorship of popular television programs, have significantly increased brand awareness and consumer engagement[97]. - A new television advertisement featuring a popular local actor was launched to enhance the brand image of Eagle Oil, significantly boosting sales[113]. Financial Management and Compliance - The company continues to maintain a conservative financial management approach, ensuring a solid foundation for future business development and acquisitions[181]. - The company has adhered to all provisions of the Corporate Governance Code during the six months ended September 30, 2023[188]. - The company did not engage in any significant acquisitions or disposals during the reporting period, maintaining a stable investment strategy[169]. - The company reported no significant regulatory non-compliance during the reporting period, ensuring adherence to applicable laws and regulations[170]. - The implementation of HKFRS 17 has no significant impact on the financial statements as the group does not have contracts within its scope[116]. Risks and Sustainability - The company faces inherent risks related to product liability, personal injury, or negligence claims due to the nature of its business[178]. - The company has implemented various measures to promote environmental sustainability and energy conservation[174]. - The company has not reported any significant events after September 30, 2023, except for the sale of a 19% stake in Beijing Xinlejia International Health Technology Co., Ltd.[186].
健倍苗苗(02161) - 2024 - 中期业绩