鹰美(02368) - 2024 - 中期业绩

Cover and Financial Highlights Financial Highlights The company's operating revenue slightly decreased by 1.0% to HKD 2.52 billion, with profit attributable to owners declining 4.1% to HKD 229 million, while gross margin remained stable and interim dividend per share was maintained 2023/24 Interim Financial Performance Summary | Indicator | For the six months ended September 30, 2023 | Prior Year Period | Year-on-year Change | | :--- | :--- | :--- | :--- | | Operating Revenue (HKD) | 2,521,900,000 | 2,547,600,000 | -1.0% | | Gross Profit Margin (%) | 20.5% | 20.6% | -0.1 percentage points | | Profit Attributable to Owners of the Company (HKD) | 229,200,000 | 239,100,000 | -4.1% | | Interim Dividend (HKD per share) | 0.30 | 0.30 | Flat | Condensed Consolidated Interim Financial Statements Condensed Consolidated Income Statement The Group's operating revenue slightly decreased by 1.0% to HKD 2.522 billion, with gross profit declining 1.1% and profit for the period decreasing 3.9% to HKD 236 million due to higher finance costs and tax expenses Condensed Consolidated Income Statement (For the six months ended September 30) | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | Change | | :--- | :--- | :--- | :--- | | Operating Revenue | 2,521,917 | 2,547,555 | -1.0% | | Gross Profit | 517,863 | 523,788 | -1.1% | | Profit Before Tax | 326,585 | 331,587 | -1.5% | | Profit for the Period | 236,211 | 245,857 | -3.9% | | Profit Attributable to Owners of the Company | 229,225 | 239,111 | -4.1% | Earnings Per Share | Item | 2023 | 2022 | | :--- | :--- | :--- | | Basic Earnings Per Share (HK cents) | 42.94 | 44.79 | | Diluted Earnings Per Share (HK cents) | 42.94 | 44.79 | Condensed Consolidated Statement of Comprehensive Income Total comprehensive income for the period increased to HKD 149 million, influenced by profit for the period and exchange losses of HKD 84.14 million from overseas operations - Total comprehensive income for the period was HKD 149 million, primarily impacted by profit for the period of HKD 236 million and exchange losses from overseas operations of HKD 84.14 million[27][28] Condensed Consolidated Statement of Financial Position As of September 30, 2023, total assets reached HKD 3.29 billion and net assets HKD 1.76 billion, with net current assets significantly increasing to HKD 710 million, while interest-bearing bank borrowings also rose Condensed Consolidated Statement of Financial Position Summary | Item (HKD thousands) | September 30, 2023 (Unaudited) | March 31, 2023 (Audited) | | :--- | :--- | :--- | | Total Non-current Assets | 1,365,602 | 1,412,551 | | Total Current Assets | 1,928,178 | 1,662,196 | | Total Current Liabilities | 1,221,189 | 1,241,933 | | Net Current Assets | 706,989 | 420,263 | | Total Non-current Liabilities | 315,760 | 150,568 | | Net Assets | 1,756,831 | 1,682,246 | Notes to the Financial Statements The notes provide detailed information on the basis of preparation, accounting policy changes, segment performance, revenue, finance costs, taxation, dividends, earnings per share, and asset/liability specifics, with new HKFRS adoption having no material impact 3. Operating Segment Information The Group's business is segmented by customer location, with Mainland China revenue growing 23.3% to become the largest contributor at 58.5% of total revenue, while US, European, and Japanese markets saw significant declines - The Group's operating segments are classified by customer location (destination of sales) into Mainland China, the United States, Europe, Japan, and other regions[22] Operating Revenue by Segment (For the six months ended September 30) | Region | 2023 (HKD thousands) | 2022 (HKD thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Mainland China | 1,474,210 | 1,195,852 | +23.3% | | United States | 413,577 | 574,996 | -28.1% | | Europe | 335,336 | 457,970 | -26.8% | | Japan | 48,757 | 64,685 | -24.6% | | Other Regions | 250,037 | 254,052 | -1.6% | | Total | 2,521,917 | 2,547,555 | -1.0% | 5. Finance Costs Total finance costs surged by 179% to HKD 21.4 million, primarily driven by a substantial increase in bank loan interest from HKD 7.4 million to HKD 21.25 million Finance Costs Details (For the six months ended September 30) | Item | 2023 (HKD thousands) | 2022 (HKD thousands) | | :--- | :--- | :--- | | Interest on bank borrowings | 21,246 | 7,396 | | Interest on lease liabilities | 151 | 271 | | Total | 21,397 | 7,667 | 8. Interim Dividend The Board declared an interim dividend of HKD 0.30 per share for the six months ended September 30, 2023, consistent with the prior year, totaling approximately HKD 160 million - The Board declared an interim dividend of HKD 0.30 per share, consistent with the prior year period[42] 9. Earnings Per Share Basic earnings per share are calculated based on HKD 229 million profit attributable to owners and 534 million ordinary shares, with diluted earnings per share being identical due to no dilutive effects - Basic earnings per share were HKD 0.4294, calculated based on profit for the period of HKD 229,225,000 and 533,800,000 ordinary shares in issue[43] 12. Interest-bearing Bank Borrowings As of September 30, 2023, total interest-bearing bank borrowings increased to HKD 760 million, with HKD 510 million current and HKD 250 million non-current, at interest rates ranging from 4.93% to 6.13% Interest-bearing Bank Borrowings Summary | Item (HKD thousands) | September 30, 2023 | March 31, 2023 | | :--- | :--- | :--- | | Current bank borrowings | 509,641 | 544,323 | | Non-current bank borrowings | 250,560 | 78,500 | | Total | 760,201 | 622,823 | Management Discussion and Analysis Business Review Despite a challenging market with declining consumer demand and high inventory, the Group maintained stable performance, driven by a significant HKD 278 million sales increase in Mainland China, while actively diversifying production bases in China, Indonesia, and Vietnam - The market environment is severe, impacted by both declining consumer demand and high inventory adjustments[51] - Sales in the Mainland China market significantly increased by HKD 278 million, with its sales contribution rising from 46.9% to 58.5%, while sales in European and American markets decreased due to high interest rates[54] - The Group continues to expand capacity, with the Foshan factory integrated into the system, the Bandung factory in Indonesia commenced production, and the Long An factory in Vietnam completed renovation and is ready for production[71] Financial Performance Review Total sales and gross margin remained stable, but profit before tax margin slightly decreased to 12.9%, with sales and distribution expenses down 16.5%, administrative expenses up 3.8%, and finance costs surging 179.1% due to increased borrowings and rising interest rates - Total sales, gross profit, and profit before tax remained largely consistent with the prior year period, with a profit before tax margin of 12.9%[91] - Sales and distribution expenses decreased by 16.5%, administrative expenses increased by 3.8%, and other operating expenses significantly decreased by 76.9% due to reduced exchange losses[75] - Finance costs surged by 179.1% year-on-year due to increased bank borrowings and rising interest rates[75] - The effective tax rate increased from 25.9% to 27.7%, primarily due to a higher proportion of profit derived from Mainland China, which has a higher tax rate[75] Liquidity and Financial Resources The Group maintained robust liquidity with HKD 647 million in cash and bank balances, a low gearing ratio of 6.5%, and ample bank loan facilities, with HKD 760 million utilized - As at September 30, 2023, the Group held cash and bank balances of HKD 647 million, an increase from HKD 515 million at the beginning of the period[78] - The gearing ratio (net debt/total capital) was 6.5%, largely consistent with 6.4% at the beginning of the period, maintaining a healthy level[94] - As at the end of the reporting period, bank loan facilities amounted to HKD 1.106 billion, with HKD 760 million utilized[108] Outlook Despite an uncertain economic environment and weak consumer demand, the Board remains cautiously optimistic, with management focusing on market monitoring, cost control, and optimizing production base layout to navigate challenges and capitalize on opportunities - Facing economic uncertainty and weak demand, the Board maintains a cautiously optimistic outlook on business prospects[94] - Management will address risks and challenges and achieve higher-level development through continuous market monitoring, cost control, and optimization of production bases[94][90] Other Information Employees and Remuneration Policy As of September 30, 2023, the Group employed approximately 15,000 staff, with remuneration based on performance, experience, and industry practice, complemented by statutory pension schemes - As at September 30, 2023, the Group employed approximately 15,000 staff[109] - Employee remuneration is determined based on performance, experience, and industry practice, with statutory pension schemes provided[81] Corporate Governance The company complied with the Corporate Governance Code, with a deviation where the Chairman and CEO roles are combined, which the Board believes does not affect power balance, and the Audit Committee has reviewed the interim financial statements - The company complied with the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are held by the same person (Mr. Chung Yuk Sing)[83][98] - The Audit Committee, comprising three independent non-executive directors, has reviewed these unaudited condensed consolidated interim financial statements[100] Interim Dividend and Closure of Register The company announced an interim dividend of HKD 0.30 per share, payable on December 11, 2023, with shareholder registration suspended from November 24 to 28, 2023, to determine eligibility - An interim dividend of HKD 0.30 per share was declared, payable on December 11, 2023[85] - Shareholder registration will be suspended from November 24 to November 28, 2023[85]