Financial Performance - Revenue increased by 10.9% to approximately HKD 1,023.4 million for the six months ended June 30, 2024, compared to HKD 922.8 million for the same period in 2023[1]. - Gross profit rose by 9.9% to approximately HKD 244.9 million, with a gross margin decrease of 0.3 percentage points to 23.9%[1]. - Operating profit was approximately HKD 64.0 million, up from HKD 56.3 million in the previous year[1]. - Profit attributable to owners of the company was approximately HKD 53.3 million, compared to HKD 38.5 million for the same period in 2023[1]. - The interim dividend declared is HKD 0.03 per share, an increase from HKD 0.02 per share in the previous year[1]. - The company reported a total comprehensive income of HKD 43.9 million for the period, compared to HKD 26.7 million in the previous year[3]. - The total profit for the period, after tax expenses, was reported at HKD 121,898,000[11]. - Basic earnings per share attributable to the company's owners increased to HKD 7.4, up 39.6% from HKD 5.3[25]. Revenue Breakdown - The revenue breakdown includes HKD 176,110,000 from hotel supplies, HKD 124,570,000 from operational supplies and equipment, and HKD 236,456,000 from healthcare and hygiene products[11]. - Revenue from the hotel supplies business increased by 14.2% to approximately HKD 857.8 million, accounting for 83.8% of total revenue[46]. - Revenue from the healthcare and hygiene products business was approximately HKD 83.3 million for the six months ended June 30, 2024, a decrease from HKD 105.3 million in the same period of 2023, representing 8.2% of total revenue[50]. - The operational supplies and equipment segment generated revenue of HKD 750,964,000, contributing significantly to the overall performance[11]. - The operational supplies and equipment business generated revenue of approximately HKD 82.3 million for the six months ended June 30, 2024, an increase of 23.8% from HKD 66.5 million in the same period of 2023, accounting for 8.0% of total revenue[48]. Expenses and Costs - The cost of goods sold for the six months ended June 30, 2024, was HKD 527,755, an increase from HKD 484,975 in 2023, reflecting a rise of about 8.8%[13]. - Employee benefits expenses increased to HKD 267,852 for the six months ended June 30, 2024, compared to HKD 226,586 in 2023, marking an increase of approximately 18.2%[13]. - The total tax expense for the six months ended June 30, 2024, was HKD 13,590, compared to HKD 22,887 in 2023, showing a decrease of approximately 40.6%[16]. - Depreciation of property, plant, and equipment was HKD 26,368 for the six months ended June 30, 2024, slightly down from HKD 26,933 in 2023, reflecting a decrease of about 2.1%[13]. Assets and Liabilities - Total assets decreased to HKD 1,869.0 million from HKD 1,965.2 million as of December 31, 2023[4]. - Total liabilities decreased to HKD 668.1 million from HKD 772.0 million[5]. - Cash and cash equivalents totaled HKD 314.366 million as of June 30, 2024, compared to HKD 375.093 million at the end of 2023[21]. - Net trade receivables as of June 30, 2024, were HKD 559.995 million, down from HKD 609.771 million as of December 31, 2023[18]. - Trade payables as of June 30, 2024, were HKD 226.713 million, a decrease from HKD 282.462 million as of December 31, 2023[22]. Strategic Focus and Future Outlook - The group continues to focus on market expansion and product development strategies to enhance future growth prospects[11]. - The company aims to expand its presence in Southeast Asia, having commenced operations of a liquid product production line in Cambodia to enhance cost efficiency and tap into market opportunities[53]. - The company is committed to sustainable development and green production processes in its hotel supplies and healthcare businesses, aligning with increasing environmental standards[54]. - The company anticipates that international tourism will fully recover in 2024, despite ongoing economic challenges, and will actively seek to identify market changes to ensure stable growth[52]. Corporate Governance and Compliance - The company has complied with all provisions of the Corporate Governance Code as per the Hong Kong Stock Exchange, except for the appointment of a CEO, which is currently managed collectively by all executive directors[59]. - The audit committee, composed of four independent non-executive directors, has reviewed the unaudited condensed consolidated interim results for the six months ended June 30, 2024[60]. - The company has adopted the Standard Code for Securities Transactions by Directors as per the listing rules, and all directors have confirmed compliance for the six months ended June 30, 2024[61]. Employee Performance and Incentives - The company has implemented key performance indicator assessment plans and annual incentive schemes to enhance employee performance and operational efficiency[57]. - The board believes that the current arrangement of having all executive directors share the responsibilities of the CEO is beneficial for leveraging diverse expertise[59]. - The company is committed to regular reviews of employee remuneration based on market terms and individual qualifications[57].
明辉国际(03828) - 2024 - 中期业绩