运兴泰集团(08362) - 2024 - 中期业绩

Financial Statements This section provides the condensed consolidated financial statements, offering a comprehensive overview of the Group's financial performance, position, and cash flows Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2024, Group revenue slightly increased by 4.1% to HKD 54.172 million, with loss for the period significantly narrowed to HKD 0.807 million due to effective cost and expense control Performance Summary for the Six Months Ended June 30 | Metric | 2024 (HKD Thousands) | 2023 (HKD Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 54,172 | 52,030 | +4.1% | | Loss Before Tax | (807) | (3,197) | Loss Narrowed 74.8% | | Loss for the Period | (807) | (3,197) | Loss Narrowed 74.8% | | Loss Attributable to Owners of the Company | (414) | (2,952) | Loss Narrowed 86.0% | | Basic Loss Per Share (HK Cents) | (0.03) | (0.21) | Loss Narrowed | Condensed Consolidated Statement of Comprehensive Income The Group achieved a turnaround to a total comprehensive income of HKD 0.489 million for the period, compared to a total comprehensive loss of HKD 1.903 million in the prior period, primarily due to reduced operating losses and asset revaluation gains - Total comprehensive income for the period was HKD 0.489 million, compared to a total comprehensive loss of HKD 1.903 million in the prior period[4] - Other comprehensive income (net of tax) was HKD 1.296 million, primarily from asset revaluation surplus, remaining largely consistent with HKD 1.294 million in the prior period[4] Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group's financial position remained stable, with total assets at HKD 117 million, net assets slightly increasing to HKD 87.312 million, and cash and cash equivalents significantly rising to HKD 14.112 million Financial Position Summary | Metric | June 30, 2024 (HKD Thousands) | December 31, 2023 (HKD Thousands) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 82,152 | 84,385 | -2.6% | | Current Assets | 34,673 | 36,243 | -4.3% | | Current Liabilities | 19,726 | 22,457 | -12.2% | | Net Assets | 87,312 | 86,856 | +0.5% | | Cash and Cash Equivalents | 14,112 | 10,283 | +37.2% | Condensed Consolidated Statement of Changes in Equity As of June 30, 2024, total equity increased from HKD 86.856 million at the beginning of the year to HKD 87.312 million, primarily driven by the total comprehensive income of HKD 0.489 million recorded during the period - Equity attributable to owners of the Company increased from HKD 92.230 million at the beginning of the year to HKD 93.112 million, mainly due to HKD 0.882 million in total comprehensive income[8] - Total equity grew from HKD 86.856 million as of January 1, 2024, to HKD 87.312 million as of June 30, 2024[8] Condensed Consolidated Statement of Cash Flows During the period, net cash flows from operating activities significantly improved to HKD 8.024 million from HKD 1.562 million in the prior period, resulting in a net increase of HKD 3.829 million in cash and cash equivalents to HKD 14.112 million despite increased financing outflows Cash Flow Summary (For the Six Months Ended June 30) | Metric | 2024 (HKD Thousands) | 2023 (HKD Thousands) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | 8,024 | 1,562 | | Net Cash Flows from Investing/(Used in) Investing Activities | (86) | 154 | | Net Cash Flows Used in Financing Activities | (4,109) | (2,443) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 3,829 | (727) | | Cash and Cash Equivalents at End of Period | 14,112 | 14,874 | Notes to the Condensed Consolidated Financial Statements This section provides detailed notes to the condensed consolidated financial statements, including company information, accounting policies, segment data, revenue analysis, and related party transactions Company Information, Basis of Preparation, and Accounting Policies The Group operates as an investment holding company primarily engaged in food processing, trading, and restaurant operations in Hong Kong, with interim financial information prepared under HKAS and GEM Listing Rules, maintaining consistent accounting policies - The Group is primarily engaged in processing and trading of raw, frozen, and cooked food products, as well as operating restaurants[12] - The financial information is prepared on a historical cost basis and should be read in conjunction with the annual financial statements[13] - The adoption of new Hong Kong Financial Reporting Standards had no significant impact on the Group's results or financial position[14] Segment Information The Group's operations are divided into food processing and trading, and restaurant operations; the former saw revenue grow by 16.2% to HKD 43.564 million but incurred an operating loss of HKD 2.960 million, while the latter's revenue decreased by 27.0% to HKD 10.608 million but improved significantly to a profit of HKD 2.143 million Segment Results (For the Six Months Ended June 30) | Segment | Revenue (HKD Thousands) | 2023 Prior Period Revenue (HKD Thousands) | Segment Result (HKD Thousands) | 2023 Prior Period Result (HKD Thousands) | | :--- | :--- | :--- | :--- | :--- | | Food Processing and Trading | 43,564 | 37,498 | (2,960) | (3,391) | | Restaurant Operations | 10,608 | 14,532 | 2,143 | 81 | - All of the Group's revenue and non-current assets are derived from and located in Hong Kong[18] Revenue Total revenue for the period was HKD 54.172 million, entirely from customer contracts, with sales of food products increasing by 16.2% to HKD 43.534 million and restaurant operations revenue decreasing by 27.0% to HKD 10.608 million, mostly recognized at a point in time Revenue Breakdown (For the Six Months Ended June 30) | Type of Goods or Services | 2024 (HKD Thousands) | 2023 (HKD Thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Sales of Food Products | 43,534 | 37,453 | +16.2% | | Restaurant Operations Revenue | 10,608 | 14,532 | -27.0% | | Revenue from Transportation Services | 30 | 45 | -33.3% | | Total | 54,172 | 52,030 | +4.1% | Key Financial Notes The Board does not recommend an interim dividend, basic loss per share narrowed from HKD 0.21 cents to HKD 0.03 cents, trade receivables decreased from HKD 15.922 million to HKD 11.664 million, and there were no significant contingent liabilities or capital commitments at period-end - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[28] - Basic loss per share was HKD 0.03 cents, compared to HKD 0.21 cents in the prior period[27][29] - Trade receivables balance decreased from HKD 15.922 million at the end of 2023 to HKD 11.664 million[30] - At the end of the reporting period, the Group had no significant contingent liabilities or capital commitments[38][39] Related Party Transactions During the period, the Group engaged in transactions with various related parties, including sales of goods to You Xing for HKD 2.787 million, purchases from Guangzhou Geyun and Rong Zhi, property leases from You Ye Property, and total key management personnel compensation of HKD 2.498 million Major Related Party Transactions (For the Six Months Ended June 30) | Related Party | Type of Transaction | 2024 (HKD Thousands) | 2023 (HKD Thousands) | | :--- | :--- | :--- | :--- | | You Xing | Sales of Goods | 2,787 | 4,250 | | Guangzhou Geyun | Purchases of Goods | 240 | 852 | | Rong Zhi | Purchases of Goods | 872 | – | - The Group leased properties from related party You Ye Property, with a corresponding right-of-use asset of HKD 0.957 million and lease liabilities of HKD 2.318 million[42] Management Discussion and Analysis This section provides management's discussion and analysis of the Group's business review, financial performance, liquidity, and capital structure for the reporting period Business Review and Prospects The Group continues to focus on food processing, trading, and catering in Hong Kong, expanding its restaurant market presence through joint ventures Rong Tai Catering and Xin Jing Tai, which are expected to boost future sales and revenue as key ingredient suppliers - The Group participates in Hong Kong's catering and food business through joint ventures Rong Tai Catering (55% owned) and Xin Jing Tai (60% owned)[45] - The Group will serve as the primary supplier to the joint venture restaurants, which the directors believe will enhance the Group's future sales and revenue[46] Financial Review In the first half of 2024, the Group's financial performance significantly improved, with revenue growing 4.2% to HKD 54.20 million, gross profit increasing to HKD 24.80 million (45.8% margin), and net loss for the period narrowing from HKD 3.20 million to HKD 0.80 million due to increased revenue and reduced employee benefit expenses - Revenue increased by 4.2% to HKD 54.20 million, with approximately HKD 43.60 million from food processing and trading and HKD 10.60 million from restaurant operations[47] - Gross profit was HKD 24.80 million, with a gross profit margin of 45.8%, compared to HKD 23.70 million and 45.6% in the prior period[49] - Employee benefit expenses decreased from HKD 13.50 million to HKD 12.90 million, primarily due to a reduction in restaurant employees[50] - Net loss for the period significantly narrowed from HKD 3.20 million in the prior period to approximately HKD 0.80 million[52] Liquidity, Financial Resources, and Capital Structure The Group maintains a healthy liquidity position with HKD 14.10 million in cash and HKD 14.90 million in net current assets at period-end, while its gearing ratio decreased from 3.1% to 2.6%, indicating reduced financial leverage, with no significant changes to its capital structure since listing - As of June 30, 2024, the Group's net current assets were approximately HKD 14.90 million, with bank cash of approximately HKD 14.10 million[53] - The gearing ratio was approximately 2.6%, a decrease from 3.1% at the end of 2023[54] - Leasehold land and buildings with a net book value of approximately HKD 57.50 million have been pledged to secure bank facilities[58] Other Information This section covers other relevant information, including directors' and shareholders' interests, corporate governance practices, and compliance with listing rules Directors' and Shareholders' Interests On January 26, 2024, a change in control of the ultimate holding company, Kin King Ventures, triggered a mandatory unconditional cash offer for the Company, resulting in the Offeror and parties acting in concert holding 75% equity through Kin King Ventures, while no share options have been granted under the Company's share option scheme since its adoption - On January 26, 2024, the Company's controlling interest changed, with the Offeror acquiring approximately 76.78% of the shares in the ultimate holding company, Kin King Ventures[64] - Immediately following the completion of the transaction, the Offeror and parties acting in concert held 75% of the Company's issued share capital[65] - As of June 30, 2024, Kin King Ventures Limited held 1,050,000,000 shares in the Company, representing 75%[67] - No share options have been granted since the adoption of the share option scheme in 2017[68] Corporate Governance The Company has adopted and complied with the Corporate Governance Code, except for the company secretary not being a full-time employee, and has an Audit Committee comprising three independent non-executive directors who reviewed the interim results announcement, with the controlling shareholder having signed a non-competition undertaking - The Company has complied with the Corporate Governance Code, except for the company secretary not being an employee of the Company, for which an executive director has been appointed as contact person[73][74] - The Audit Committee, comprising three independent non-executive directors, has reviewed this results announcement[75] - The controlling shareholder has entered into a non-competition undertaking, committing not to compete with the Group's core business[72]