Workflow
南顺(香港)(00411) - 2020 - 中期财报
LAM SOON (HK)LAM SOON (HK)(HK:00411)2020-03-17 08:49

Financial Performance - The Group's interim net profit attributable to shareholders declined by 7% to HK$187.3 million, while revenue grew marginally to HK$2,861 million, and gross profit margin improved from 22.2% to 23%[11]. - The food segment's revenue was HK$2,488 million, remaining on par with the same period last year, while operating profit declined by 12% to HK$215 million[14]. - The home care segment's revenue remained flat at HK$372 million, but operating profit surged by 71% due to favorable material costs and price increases[21]. - Profit for the period decreased to HK$187,325,000 from HK$201,407,000 in 2018, representing a decline of about 7%[35]. - Total comprehensive income for the period was HK$160,069,000, an increase from HK$142,854,000 in 2018, marking a growth of approximately 12%[38]. - Consolidated profit before taxation for the six months ended December 31, 2019, was HK$229,033,000, down from HK$239,274,000 in 2018, reflecting a decrease of about 4.3%[98]. - The Group's profit attributable to equity shareholders for the interim period is HK$187,325,000, a decrease from HK$201,407,000 in 2018, reflecting a decline of approximately 7.4%[115]. Cash Flow and Financial Position - As of December 31, 2019, the Group's cash balance increased by 5% to HK$1,378 million, enabling capital investments to strengthen the supply chain for geographic and business expansions[12]. - The Group's cash balance as of December 31, 2019, was HK$1,378 million, an increase from HK$1,318 million on June 30, 2019, primarily due to net cash generated from operating activities[23][27]. - For the six months ended December 31, 2019, the net cash generated from operating activities was HK$179,849,000, a decrease from HK$290,332,000 in the same period of 2018[48]. - The total taxation expense for the six months ended December 31, 2019, is HK$41,708,000, compared to HK$37,867,000 in 2018, reflecting an increase of approximately 10.0%[5]. - The Group had unutilized banking facilities amounting to HK$600 million as of December 31, 2019, down from HK$721 million on June 30, 2019[23]. Capital Expenditure and Investments - Capital expenditure during the six months ended December 31, 2019, totaled HK$47 million, down from HK$73 million in the previous year[29]. - The Group plans to continue selective capital investments in the oil and flour businesses to support volumetric and geographic growth[21]. - The Group's capital expenditure authorized and contracted for amounted to HK$65,113,000, compared to HK$29,013,000 as of June 30, 2019[152]. Segment Performance - The edible oil business experienced healthy revenue growth but faced a reduction in gross margin due to higher raw material costs of corn and peanut oil[15]. - New product introductions in the oil segment, such as Supreme Corn and Supreme Peanut, contributed to revenue and market share growth, with strong year-on-year expansion in the online business[15]. - Reportable segment profit from operations decreased to HK$215,295,000 in 2019 from HK$244,017,000 in 2018, representing a decline of approximately 11.7%[96]. - Reportable segment revenue for the six months ended December 31, 2019, was HK$2,860,318,000, compared to HK$2,856,705,000 in 2018, indicating a marginal increase[98]. Dividend and Shareholder Information - The Board declared an interim dividend of HK$0.14 per share, totaling approximately HK$34 million, consistent with the previous year[13]. - The final dividend for the previous financial year approved during the interim period is HK$0.30 per ordinary share, an increase from HK$0.27 in 2018, totaling HK$71,077,000[114]. - The interim dividend declared is HK$0.14 per ordinary share, unchanged from 2018, with total dividends payable amounting to HK$33,227,000 for the interim period[111]. Accounting Standards and Policies - The Group has adopted HKFRS 16 on July 1, 2019, recognizing right-of-use assets equal to the remaining lease liabilities, with a weighted average incremental borrowing rate of 5.14%[73]. - The initial application of HKFRS 16 has resulted in the recognition of lease liabilities and corresponding right-of-use assets as of 1 July 2019[60]. - The adoption of HKFRS 16 did not have a material impact on the financial results for the six months ended December 31, 2019[84]. - The Group's accounting policies for lessee accounting now require capitalizing all leases, eliminating the previous classification into operating and finance leases[65]. Employee and Corporate Governance - The group had 1,732 employees as of December 31, 2019, with a compensation policy that includes annual salary increments and performance bonuses[33]. - The unaudited interim results for the six months ended December 31, 2019, have been reviewed by the Board Audit and Risk Management Committee, indicating a commitment to governance and oversight[164]. - The Company has adopted a Code of Corporate Governance Practices based on the HKEx Code, ensuring compliance during the reporting period[196]. Miscellaneous - The Group's strategic initiatives continue to lay the foundation for long-term growth despite the uncertain macroeconomic and political environment[6]. - The Group operates in two reportable segments: Home Care and Food, focusing on cleaning products and a range of food products respectively[87][90].