Financial Performance - The Group achieved a revenue growth of 7% and a net profit increase of 27% to HK$238 million for the six months ended 31 December 2020[4][9]. - For the six months ended December 31, 2020, the company reported revenue of HK$3,051,295, an increase of 6.67% from HK$2,860,591 in the same period of 2019[36]. - Gross profit for the same period was HK$731,677, representing a gross margin of approximately 24% compared to HK$657,575 in 2019[36]. - Profit for the period increased to HK$238,233, up 27.16% from HK$187,325 in the previous year[38]. - Total comprehensive income for the period was HK$385,185, significantly higher than HK$160,069 in 2019, indicating strong performance[38]. - The Group's reportable segment profit from operations was HK$324,825 for the six months ended December 31, 2020, compared to HK$255,994 in the same period of 2019, reflecting an increase of approximately 26.9%[62]. - Consolidated profit before taxation reached HK$294,097,000, an increase of 28.5% from HK$229,033,000 in the previous year[65]. Revenue Segmentation - The Food segment's revenue rose by 6% to HK$2,626 million, with operating profit increasing by 27% to HK$274 million[12][15]. - Revenue from external customers in the Food segment was HK$2,626,427, while the Home Care segment generated HK$424,868, contributing to the total revenue of HK$3,051,295[62]. - Revenue from contracts with customers in Mainland China was HK$2,676,103, which accounted for a significant portion of the total revenue, compared to HK$2,468,454 in the previous year[60]. Cash Flow and Financial Position - Cash balance increased by 7% to HK$1,631 million, with HK$29 million invested in fixed income government bonds in Mainland China for higher returns[10][13]. - The Group's cash balance as of December 31, 2020, was HK$1,631 million, up from HK$1,530 million on June 30, 2020, primarily due to net cash generated from operating activities[25]. - Net cash generated from operating activities was HK$153,149,000, a decrease from HK$179,849,000 in the previous year[46]. - The company reported a net cash used in investing activities of HK$360,264,000 and net cash used in financing activities of HK$85,266,000[46]. - Cash and cash equivalents at December 31, 2020, were HK$1,145,484,000, down from HK$1,377,996,000 at the end of 2019[46]. - The company’s total equity increased to HK$2,779,091,000 as of December 31, 2020, from HK$2,421,510,000 a year earlier[42]. Dividends - An interim dividend of HK$0.15 per share was declared, totaling approximately HK$37 million, an increase from HK$0.14 per share totaling HK$34 million in the previous year[11][14]. - The total final dividend for the previous financial year approved and paid during the interim period was HK$0.31 per share, compared to HK$0.30 in 2019, indicating a 3.3% increase[82]. Operational Highlights - The specialty fats facility in Jintan, China, commenced construction in September 2020 and is expected to be operational by the end of FY2020/21, despite slight delays due to COVID-19[6][8]. - The Edible Oil business faced challenges from escalating material costs but launched a new premium product and a major brand uplift to capture market momentum[16]. - Increased interactive online communication with customers was implemented to support customer demands during movement controls and travel restrictions[16]. - The Group's agility allowed it to adapt effectively to the new normal, regaining sales momentum despite macroeconomic challenges[5][8]. Employee and Compensation - The company employed 1,702 employees as of December 31, 2020, with a compensation policy that includes annual salary increments and performance bonuses[35]. - Staff costs amounted to HK$215,395,000, up from HK$197,036,000 in 2019, reflecting an increase of 9.2%[67]. Capital Expenditure - The Group invested HK$54 million in capital expenditure during the six months ended December 31, 2020, compared to HK$47 million in the same period in 2019[31]. - The company acquired property, plant, and equipment at a cost of HK$68,486,000 during the six months ended December 31, 2020, compared to HK$46,345,000 in 2019, representing a 47.8% increase[87]. - Capital expenditure authorized and contracted for amounted to HK$89,274,000 as of 31 December 2020, up from HK$52,760,000 as of 30 June 2020, representing a 69.3% increase[113]. Shareholder Information - The Group's issued share capital remained at 243,354,000 shares, with a total value of HK$672,777,000 as of December 31, 2020[96]. - The Company purchased 756,000 shares at a total consideration of HK$9,530,000 during the period[149]. - The interests of substantial shareholders included 140,008,659 ordinary shares held by GuoLine International Limited, a wholly-owned subsidiary of Hong Leong Company[139]. Governance and Compliance - The company complied with the HKEx Code during the reporting period, except for non-executive directors not being appointed for a specific term[142]. - The Company has adopted corporate governance practices in line with the Hong Kong Stock Exchange's requirements[145]. - The unaudited interim results for the six months ended 31 December 2020 have been reviewed by the Board Audit and Risk Management Committee[117].
南顺(香港)(00411) - 2021 - 中期财报