Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 349.4 million, a decrease of 2.8% compared to HKD 359.4 million for the same period in 2023[1] - Gross profit for the six months ended June 30, 2024, was HKD 124.8 million, an increase of 7.5% from HKD 116.1 million in the same period of 2023[1] - Profit for the six months ended June 30, 2024, was HKD 36.1 million, representing a 63.3% increase from HKD 22.1 million in the same period of 2023[1] - Total comprehensive income for the period was HKD 33.1 million, compared to HKD 17.8 million for the same period in 2023[4] - The group's profit before tax for the six months ended June 30, 2024, was HKD 36,146,000, compared to HKD 22,090,000 for the same period in 2023, representing a year-on-year increase of 63.7%[21] - The group's net profit increased by HKD 14.0 million or 63.3% to HKD 36.1 million, with the net profit margin rising from 6.1% to 10.3%[45] Revenue Breakdown - Total customer contract revenue for the six months ended June 30, 2024, was HKD 349,437,000, a decrease of 2.6% compared to HKD 359,382,000 for the same period in 2023[13] - Revenue from coffee, tea, and related products sales was HKD 334,534,000, down from HKD 342,514,000 year-over-year[13] - Revenue from frozen food sales decreased significantly to HKD 4,103,000 from HKD 6,492,000, representing a decline of 36.7%[13] - Revenue from coffee and tea machine planning services was HKD 10,800,000, slightly up from HKD 10,376,000, indicating a growth of 4.1%[13] - Revenue from Hong Kong for the six months ended June 30, 2024, was HKD 244,279,000, an increase of 2.9% from HKD 238,586,000 in 2023[13] - Revenue from Mainland China decreased to HKD 99,187,000 from HKD 113,940,000, a decline of 13.0%[13] Costs and Expenses - The cost of goods sold for the six months ended June 30, 2024, was HKD 224,629,000, a decrease from HKD 243,276,000 for the same period in 2023, representing a reduction of 7.6%[6] - The cost of sales decreased by HKD 18.7 million or 7.7% to HKD 224.6 million, mainly due to a reduction in raw material costs for coffee products[37] - The group incurred employee benefit expenses of HKD 60,728,000 for the six months ended June 30, 2024, compared to HKD 57,766,000 for the same period in 2023, an increase of 5.1%[6] Assets and Liabilities - Non-current assets as of June 30, 2024, totaled HKD 229.1 million, an increase from HKD 217.7 million as of December 31, 2023[5] - Current assets as of June 30, 2024, were HKD 449.1 million, down from HKD 517.5 million as of December 31, 2023[5] - Total liabilities as of June 30, 2024, were HKD 141.4 million, compared to HKD 125.9 million as of December 31, 2023[5] - Equity attributable to owners of the parent as of June 30, 2024, was HKD 507.6 million, down from HKD 590.4 million as of December 31, 2023[6] - Trade receivables amounted to HKD 101,001,000 as of June 30, 2024, down from HKD 126,252,000 as of December 31, 2023, showing a decrease of 20.0%[23] - Trade payables as of June 30, 2024, amounted to HKD 77.1 million, an increase from HKD 63.4 million as of December 31, 2023[26] Taxation - The total tax expense for the six months ended June 30, 2024, was HKD 8,978,000, up from HKD 4,458,000 in the same period of 2023, indicating a 101.5% increase[19] - The actual tax rate increased from 16.8% to 19.9%, with tax expenses rising by 100% to HKD 9.0 million due to increased pre-tax profits[44] Dividends and Shareholder Returns - The group recognized a special dividend of HKD 99,966,000 for the 2023 financial year, compared to HKD 15,784,000 for the previous year, marking a significant increase[20] - The company declared an interim dividend of HKD 2.76 per share for the six months ending June 30, 2024, compared to HKD 1.84 for the same period in 2023[57] Market Environment and Challenges - The company is facing significant challenges due to a 9.7% decline in retail sales value in Hong Kong in June 2024 compared to the same month in 2023[35] - Approximately 2,200 restaurants are estimated to have closed in the first half of 2024, indicating a challenging market environment for the company[35] - The company emphasizes the importance of robust cash flow and risk management in response to the complex market environment[35] - The company remains confident in its ability to adapt to market dynamics and protect shareholder interests[35] Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2024[58] - The company adhered to corporate governance practices, with a noted deviation regarding the roles of the chairman and CEO, which are held by the same individual[62] - The board consists of three independent non-executive directors, ensuring a balance of power and accountability[63] - The company has adopted a securities trading code that meets the standards required by the listing rules[64]
捷荣国际控股(02119) - 2024 - 中期业绩