天福(06868) - 2024 - 中期业绩

Cover and Financial Highlights Financial Highlights In H1 2024, key financial metrics declined, with revenue down 3.7%, gross profit down 8.3%, gross margin at 52.3%, and net profit decreasing 30.1% to RMB 69.1 million, with an interim dividend of HKD 0.03 per share H1 2024 Financial Highlights | Metric | H1 2024 | H1 2023 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | approx. RMB 811.3 million | approx. RMB 842.8 million | -3.7% | | Gross Profit | RMB 424.1 million | RMB 462.4 million | -8.3% | | Gross Margin | 52.3% | 54.9% | -2.6pp | | Profit | RMB 69.1 million | RMB 98.9 million | -30.1% | | Basic Earnings Per Share | RMB 0.06 | - | - | | Interim Dividend | HKD 0.03 per share | - | - | Financial Statements Interim Condensed Consolidated Statement of Comprehensive Income H1 2024 revenue was RMB 811 million, down 3.7%; gross profit RMB 424 million, down 8.3%; operating profit decreased 22.6%, with profit for the period at RMB 69.1 million, down 30.1%, and basic EPS falling from RMB 0.09 to RMB 0.06 Key Items from Consolidated Statement of Comprehensive Income (Six Months Ended June 30) | Item (RMB thousand) | 2024 (Unaudited) | 2023 (Unaudited) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 811,278 | 842,760 | -3.7% | | Gross Profit | 424,050 | 462,360 | -8.3% | | Operating Profit | 110,767 | 143,154 | -22.6% | | Profit Before Income Tax | 99,819 | 137,571 | -27.4% | | Profit for the Period | 69,114 | 98,910 | -30.1% | | Basic Earnings Per Share (RMB) | 0.06 | 0.09 | -33.3% | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2024, total assets were RMB 2.956 billion, slightly down from RMB 3.002 billion at year-end 2023; total liabilities increased to RMB 1.223 billion, and total equity decreased to RMB 1.733 billion, maintaining a stable asset structure Key Items from Consolidated Statement of Financial Position (RMB thousand) | Item | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 2,956,451 | 3,001,844 | -1.5% | | Total Liabilities | 1,223,253 | 1,216,132 | +0.6% | | Total Equity | 1,733,198 | 1,785,712 | -3.0% | Notes to Financial Information Company Information and Accounting Policies The Group primarily produces and sells tea, tea food, and tea ware in China; financial information is prepared under HKAS 34, with consistent accounting policies and adoption of new and revised standards - The Group's principal activities are the classification, packaging, production, and sale of tea, tea food, tea ware, and pre-packaged food, with production facilities and major customers located in China[9] - The interim financial information is prepared in accordance with HKAS 34, with accounting policies consistent with those used in the 2023 annual financial statements, and several new and revised accounting standards adopted from January 1, 2024[10][11][12] Revenue and Segment Information Group revenue primarily comes from tea, tea food, and tea ware segments; H1 2024 tea segment revenue decreased 6.4% to RMB 572 million, driving overall decline, while tea food and tea ware grew 2.1% and 9.4% respectively; tea segment profit contribution was largest but also significantly declined Revenue by Segment (Six Months Ended June 30) | Segment (RMB thousand) | 2024 | 2023 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Sales of Tea | 571,793 | 611,059 | -6.4% | | Sales of Tea Food | 110,100 | 107,771 | +2.2% | | Sales of Tea Ware | 101,728 | 93,020 | +9.4% | | Others | 27,657 | 30,910 | -10.5% | | Total | 811,278 | 842,760 | -3.7% | Segment Results (Six Months Ended June 30) | Segment (RMB thousand) | 2024 | 2023 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Tea | 91,056 | 127,038 | -28.3% | | Tea Food | 11,463 | 14,741 | -22.2% | | Tea Ware | 8,717 | 7,788 | +11.9% | | Other Segments | (1,778) | 552 | N/A | | Total | 109,458 | 150,119 | -27.1% | Analysis of Key Profit and Loss Items Other income significantly increased by 95.6% due to higher government subsidies; net other losses narrowed considerably due to reduced losses from asset disposals; income tax expense decreased by 20.6% in line with lower profit before tax - Other income increased from RMB 7.5 million to RMB 14.7 million, a year-on-year growth of 95.6%, primarily due to government subsidies increasing from RMB 2.3 million to RMB 6.6 million[21] - Net other losses significantly decreased from RMB 2.0 million to RMB 0.2 million, mainly due to reduced net losses from the disposal of property, plant, and equipment[22] - Income tax expense decreased from RMB 38.7 million to RMB 30.7 million, a year-on-year reduction of 20.6%, consistent with the decline in profit before income tax[23] Earnings Per Share and Dividends Affected by declining net profit, H1 2024 basic earnings per share decreased to RMB 0.06, down from RMB 0.09 in the prior year; the Board declared an interim dividend of HKD 0.03 per share, totaling approximately RMB 29.3 million Basic Earnings Per Share Calculation | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Profit Attributable to Shareholders (RMB thousand) | 69,114 | 98,910 | | Weighted Average Number of Ordinary Shares in Issue (thousand shares) | 1,086,241 | 1,091,242 | | Basic Earnings Per Share (RMB) | 0.06 | 0.09 | - The Board declared an interim dividend of HKD 0.03 per share (approximately RMB 0.027) for 2024 on August 19, 2024, totaling approximately RMB 29.3 million[28] Analysis of Key Balance Sheet Items During the period, the company repurchased and cancelled shares, impacting share capital and other reserves; trade receivables and payables both decreased; total bank borrowings increased from RMB 521 million to RMB 586 million, mainly due to increased short-term borrowings - As of June 30, 2024, the company cancelled 2,247,000 repurchased shares, resulting in a decrease of RMB 0.184 million in share capital and RMB 9.74 million in other reserves[36][38][39] - Net trade receivables decreased from RMB 241 million to RMB 171 million, and total trade payables decreased from RMB 117 million to RMB 81 million, indicating changes in receivables and payables management[33][40] - Total bank borrowings increased from RMB 521 million to RMB 586 million, with short-term borrowings increasing from RMB 481 million to RMB 516 million, and long-term borrowings from RMB 40 million to RMB 70 million[42] Management Discussion and Analysis Business Review and Outlook In H1 2024, Group revenue and profit declined due to weak consumer markets; the company responded by optimizing its sales network (net reduction of 9 stores) and product structure; future plans include further retail network optimization, brand enhancement, new product development, and capacity expansion - H1 2024 revenue decreased by 3.7% and profit by 30.1%, primarily due to a weak consumer market and overall economic conditions affected by multiple global factors[45] - The company continued to adjust and optimize its sales network, with a total of 1,368 retail stores and specialty counters as of June 30, 2024, a net decrease of 9 from year-end 2023[46] - Future strategies include: continuing to adjust the retail network and penetrate third and fourth-tier cities; enhancing brand reputation through marketing activities; developing new tea-related products; and expanding production capacity (e.g., building white tea packaging facilities) while strengthening quality control[48][49] Financial Review Total revenue decreased by 3.7%, mainly due to a 6.4% decline in tea sales, which accounted for 70.5% of total revenue, while tea food and tea ware sales grew 2.1% and 9.4% respectively; gross margin fell from 54.9% to 52.3% due to product mix and lower retail contribution; net profit margin decreased from 11.7% to 8.5% Revenue by Product Category (Six Months Ended June 30) | Product Category | 2024 Revenue (RMB thousand) | Proportion | 2023 Revenue (RMB thousand) | Proportion | | :--- | :--- | :--- | :--- | :--- | | Sales of Tea | 571,793 | 70.5% | 611,059 | 72.5% | | Sales of Tea Food | 110,100 | 13.6% | 107,771 | 12.8% | | Sales of Tea Ware | 101,728 | 12.5% | 93,020 | 11.0% | | Others | 27,657 | 3.4% | 30,910 | 3.7% | | Total | 811,278 | 100.0% | 842,760 | 100.0% | - The 6.4% decrease in tea sales revenue was the primary reason for the overall revenue decline, attributed to a weak consumer market; tea food and tea ware sales revenue grew by 2.1% and 9.4% respectively, benefiting from changes in product structure and successful promotional activities[53] - Gross margin decreased from 54.9% to 52.3%, primarily due to adjustments in tea product categories and a reduced proportion of retail business[55] - Affected by declining revenue and gross margin, the Group's net profit margin decreased from 11.7% in the prior period to 8.5%[63] Liquidity and Capital Resources Cash and cash equivalents increased to RMB 346 million; total bank borrowings rose to RMB 586 million, increasing the capital gearing ratio from 22.6% to 25.3%; trade receivables turnover days improved from 80 to 67 days, while inventory turnover days remained high at 471 days - Cash and cash equivalents increased from RMB 275 million to RMB 346 million, primarily due to cash inflows from operating activities and increased borrowings[64] - The capital gearing ratio (total debt/total capital) increased from 22.6% to 25.3%, mainly due to an increase in total borrowings[65] Working Capital Turnover Days | Metric | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Trade Receivables Turnover Days | 67 | 80 | | Trade Payables Turnover Days | 46 | 55 | | Inventory Turnover Days | 471 | 472 | Risk Management and Human Resources The Group's business is primarily conducted in RMB, with no significant foreign exchange risk identified; as of period-end, the Group had 3,509 employees, and staff costs slightly increased year-on-year, indicating a stable human resources situation - The Group's business is primarily conducted in RMB, and the Directors believe the Group is not exposed to significant foreign exchange risk, with no hedging activities currently undertaken[69] - As of June 30, 2024, the Group had 3,509 employees, with staff costs for the first half of the year totaling RMB 163 million, a year-on-year increase of 1.4%[69] Other Information Share Repurchases In H1 2024, the company repurchased 248,000 shares on the Stock Exchange for a total consideration of approximately HKD 1.05 million; the Board believes the current share price does not reflect its intrinsic value, and repurchases aim to create shareholder value H1 2024 Share Repurchase Details | Month | Total Shares Repurchased | Price Range Per Share (HKD) | Total Consideration (HKD) | | :--- | :--- | :--- | :--- | | January | 13,000 | 4.60 - 4.79 | 60,970 | | March | 89,000 | 3.65 - 3.90 | 335,790 | | April | 68,000 | 4.00 - 4.60 | 293,480 | | May | 39,000 | 4.55 - 4.70 | 179,180 | | June | 39,000 | 4.50 - 4.61 | 179,030 | | Total | 248,000 | | 1,048,450 | - The Board believes that share repurchases reflect the company's confidence in its long-term business prospects and that the current share price does not reflect its intrinsic value[71] Corporate Governance and Dividend Distribution The company complied with the Corporate Governance Code during the reporting period; the Board resolved to declare an interim dividend of HKD 0.03 per share, with relevant record and payment dates announced - The company complied with the Corporate Governance Code as set out in the Listing Rules for the six months ended June 30, 2024[73] - The Board resolved to declare an interim dividend of HKD 0.03 per share, with the record date set for September 9, 2024, and payment expected on or about September 30, 2024[75][76] Review of Accounts The company's Audit Committee reviewed the unaudited interim results, and external auditor PwC also conducted a review of the interim financial information in accordance with relevant standards - The Group's unaudited interim results for the six months ended June 30, 2024, have been reviewed by the company's Audit Committee and by external auditor PricewaterhouseCoopers in accordance with Hong Kong Standard on Review Engagements 2410[77]