VITASOY INT'L(00345)2024-06-20 04:01Financial Performance - For the fiscal year ending March 31, 2024, the company's revenue was HKD 6,217 million, a decrease of 2% compared to HKD 6,341 million in the previous year, but a growth of 1% after excluding currency effects[2]. - The gross profit increased by 3% to HKD 3,111 million, with a gross margin of 50.0%, up from 47.5% in the previous year, reflecting a 2.5 percentage point increase[2][3]. - Operating profit surged by 79% to HKD 185 million, with EBITDA rising by 10% to HKD 685 million, indicating a strong operational performance[2][3]. - The profit attributable to equity holders of the company increased significantly by 155% to HKD 116 million, driven by improved sales strategies in mainland China and product innovation in Hong Kong[3]. - The overall comprehensive income for the year was HKD 13 million, a significant recovery from a loss of HKD 182 million in the previous year[6]. - The pre-tax profit for the year was HKD 116,367,000, compared to HKD 45,721,000 in the previous year, representing a significant increase[27]. - The basic earnings per share increased to HKD 0.108 from HKD 0.043 year-on-year, reflecting a growth of approximately 151%[27]. Cash Flow and Assets - Cash and bank deposits (excluding bank loans) rose from HKD 30 million to HKD 538 million, reflecting improved cash flow and reduced capital expenditures[3]. - The company's cash and bank deposits as of March 31, 2024, were HKD 794,452,000, compared to HKD 555,292,000 in the previous year, marking an increase of approximately 43%[7]. - Total assets as of March 31, 2024, amounted to HKD 3,411,319,000, compared to HKD 3,377,597,000 in the previous year, reflecting an increase of approximately 1%[7]. - The company's net assets increased to HKD 3,112,637,000 in 2024 from HKD 3,100,590,000 in 2023, representing a growth of about 0.4%[8]. - The total equity attributable to equity holders of the company rose to HKD 3,004,560,000 in 2024, up from HKD 2,984,715,000 in 2023, indicating an increase of approximately 0.7%[8]. - Current liabilities decreased from HKD 2,471,922,000 in 2023 to HKD 2,225,376,000 in 2024, a reduction of about 10%[7]. - The company's bank loans decreased from HKD 409,633,000 in 2023 to HKD 255,987,000 in 2024, a decline of approximately 37%[7]. - The company's total reserves decreased slightly from HKD 1,963,262,000 in 2023 to HKD 1,960,162,000 in 2024, a decrease of about 0.2%[8]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.063 per share, totaling HKD 0.077 per share for the fiscal year, compared to HKD 0.027 per share in the previous fiscal year[3]. - The total dividend proposed for the year is HKD 82,591,000, which includes an interim dividend of HKD 15,004,000 and a final dividend of HKD 67,587,000[25]. Operational Highlights - Mainland China revenue showed a robust recovery in the second half of the fiscal year, with operating profit increasing by 402% in local currency[3]. - The company's performance in Hong Kong remained strong, with operating profit growth of 42% after excluding COVID-19 related government subsidies[3]. - The company is currently addressing production compliance issues in Australia, which have impacted performance[3]. - The company faced challenges in its Australia and New Zealand operations due to production targets, price competition, and high logistics costs, impacting performance[41]. - In Southeast Asia, Singapore's revenue remained flat year-on-year, while the Philippines joint venture saw strong growth in household products and convenience store platforms[41]. - The company plans to continue expanding its market presence and investing in new technologies[21]. - New product launches and marketing activities are planned to drive continuous growth in the Hong Kong market[55]. - The company aims to restore profitability in Singapore by improving tofu and export sales in collaboration with new distributors[56]. Compliance and Risk Management - The company has not applied any new standards or interpretations that have not yet come into effect during the reporting period, ensuring consistency in accounting policies[10]. - The company emphasizes compliance with tax laws and transparency in tax matters, adhering to OECD transfer pricing guidelines[60]. - The company has implemented a comprehensive risk management framework to identify and mitigate key business risks[62]. Future Outlook - The company plans to optimize production at Vitasoy (Shanghai) by temporarily halting production and maintaining the factory for future operations[37]. - The company plans to expand its business scale and enhance profitability in mainland China for the fiscal year 2024/2025[54].