Financial Performance - Revenue for the six months ended September 30, 2023, was HKD 1,954,785, a decrease of 7.5% from HKD 2,112,609 in the same period of 2022[2] - Gross profit for the period was HKD 459,800, down from HKD 489,242, reflecting a decline of 6.0%[2] - Net profit attributable to equity owners of the company was HKD 30,269, a decrease of 48.2% compared to HKD 58,381 in the previous year[2] - Basic and diluted earnings per share were HKD 7.9 cents, down from HKD 15.2 cents, representing a decline of 48.0%[2] - Total comprehensive loss for the period was HKD 61,653, compared to a loss of HKD 109,983 in the previous year[14] - The group incurred a loss of HKD 799,000 in net income for the period[43] - Other income for the six months ended September 30, 2023, was HKD 11,146,000, down from HKD 18,733,000 in 2022[71] - The group reported a total of HKD 66,702,000 in segment performance, with Hong Kong contributing HKD 59,329,000, China HKD 5,692,000, and Japan HKD 1,681,000[34] Assets and Liabilities - Non-current assets decreased to HKD 1,241,218 from HKD 1,308,900, a decline of 5.1%[7] - Current assets totaled HKD 1,766,925, down from HKD 1,935,170, reflecting a decrease of 8.7%[8] - Current liabilities decreased to HKD 1,540,932 from HKD 1,752,086, a reduction of 12.0%[8] - Total assets of the group amounted to HKD 3,008,143,000, with segment assets of HKD 1,297,046,000 for Hong Kong, HKD 714,255,000 for China, and HKD 494,676,000 for Japan[41] - The total liabilities of the group were HKD 1,761,534,000, with segment liabilities of HKD 556,826,000 for Hong Kong, HKD 307,394,000 for China, and HKD 305,477,000 for Japan[41] - Trade payables amounted to HKD 286,778,000 as of September 30, 2023, down from HKD 312,370,000 as of March 31, 2023[70] Revenue Breakdown - Total revenue for the six months ended September 30, 2023, was HKD 2,102,259,000, with external sales contributing HKD 1,954,785,000[24] - Revenue from the Hong Kong region was HKD 914,183,000, accounting for 47% of total revenue, while revenue from the domestic market was HKD 356,972,000, representing 18%[77] - Revenue from Japan was HKD 683,630,000, making up 35% of total revenue, with a decline attributed to currency depreciation[77] - Revenue from contracts with customers in mainland China increased to HKD 42,715,000 in 2023 from HKD 26,804,000 in 2022, reflecting a growth of 59.4%[59] Expenses and Costs - The cost of goods sold for the six months ended September 30, 2023, was HKD 1,493,714,000, a decrease of 7.9% from HKD 1,622,117,000 in 2022[56] - Total tax expenses for the six months ended September 30, 2023, were HKD 10,021,000, compared to a tax credit of HKD 14,081,000 in 2022, indicating a shift from a tax benefit to an expense[58] - Interest expenses on bank loans and trust receipts increased to HKD 19,152,000 in 2023 from HKD 8,637,000 in 2022, representing a significant increase of 121.1%[56] - The company reported a decrease in the depreciation of property, plant, and equipment to HKD 36,615,000 in 2023 from HKD 38,434,000 in 2022, a reduction of 4.7%[56] Dividends and Shareholder Information - The interim dividend per ordinary share remained unchanged at HKD 0.03 for both 2023 and 2022, with total dividends of HKD 11,527,000 in 2023 compared to HKD 11,528,000 in 2022[50] - Basic earnings per share for the six months ended September 30, 2023, were calculated based on a weighted average of 384,221,640 ordinary shares issued[48] - The board declared an interim dividend of HKD 0.03 per ordinary share, consistent with the previous year[81] Strategic Initiatives and Market Outlook - The group plans to continue monitoring segment performance to optimize resource allocation and assess future growth opportunities[22] - The group aims to expand its market share in mainland China and Japan, creating a unique food sales platform that enhances sales capabilities and customer base[92] - The group is optimistic about the mainland market, targeting the Greater Bay Area's population of over 80 million, which shares similar food preferences with Hong Kong[97] - The group plans to introduce high-quality Japanese food products, such as rice and eggs, to create stable revenue sources post-acquisition of Miyata[95] - The group has successfully expanded the Miyata ice cream brand into the mainland market, leveraging various distribution channels for sales[86] Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code as outlined in Appendix 14 of the Listing Rules during the six months ending September 30, 2023[117] - The audit committee consists of three independent non-executive directors, ensuring oversight of financial reporting and risk management[111] - The company has adopted a code of conduct for securities trading, confirming compliance by all directors during the reporting period[118] Employee and Operational Information - The total number of employees as of September 30, 2023, was approximately 2,800, with salaries reviewed annually based on performance and market conditions[108] - The group operates 17 food processing plants in Hong Kong and mainland China, producing various specialty foods to solidify its industry leadership[98] Social Responsibility and Sustainability - The group is actively engaging in corporate social responsibility initiatives, integrating sustainable development into daily operations[93] - The group emphasizes strict food quality monitoring and has received multiple certifications, including HACCP and ISO standards[80] Financial Position - As of September 30, 2023, the company had cash and cash equivalents amounting to HKD 591,092,000 and total bank credit facilities of HKD 2,715,755,000, with 35% utilized[107] - The company's debt-to-equity ratio stood at 78% as of September 30, 2023, indicating a significant reliance on bank borrowings[107]
四洲集团(00374) - 2024 - 中期业绩