Financial Performance - For the six months ended June 30, 2024, the company's revenue was HKD 1,822,499, a decrease of 5.5% compared to HKD 1,929,345 for the same period in 2023[3]. - Gross profit for the same period was HKD 637,453, down 3.2% from HKD 658,318 in 2023[3]. - The company's net profit for the six months was HKD 171,840, slightly down from HKD 172,648 in the previous year, representing a decrease of 0.5%[3]. - The total comprehensive income for the period was HKD 156,966, an increase of 36.5% compared to HKD 115,087 in 2023[5]. - Basic and diluted earnings per share for the period were both HKD 16.24, compared to HKD 16.45 in the same period last year[5]. - The group's consolidated profit before tax for the six months ended June 30, 2024, was HKD 223,505, compared to HKD 229,892 for the same period in 2023, indicating a decrease of about 2%[16][18]. - The company's profit before tax for the six months ended June 30, 2024, was HKD 169,489,000, slightly down from HKD 171,687,000 in 2023, a decrease of 1.3%[24]. - The total tax expense for the six months ended June 30, 2024, was HKD 51,665,000, compared to HKD 57,244,000 in 2023, a reduction of 9.3%[21]. Assets and Equity - As of June 30, 2024, total assets were HKD 3,766,331, a decrease from HKD 3,787,548 as of December 31, 2023[7]. - The company's total equity attributable to owners was HKD 3,620,511, down from HKD 3,631,441 at the end of 2023[7]. - The company's cash and cash equivalents amounted to HKD 1,168,371, a decrease from HKD 1,199,054 at the end of 2023[6]. - Trade receivables as of June 30, 2024, amounted to HKD 384,370,000, compared to HKD 378,228,000 as of December 31, 2023, an increase of 1.0%[25]. - Trade payables as of June 30, 2024, were HKD 141,138,000, a slight decrease from HKD 150,320,000 as of December 31, 2023, a decline of 6.1%[27]. Revenue Breakdown - Revenue from sales of goods in Hong Kong and other Asia was HKD 705,856, while revenue from Mainland China was HKD 1,116,643 for the six months ended June 30, 2024[13]. - Total segment revenue from external customers for Hong Kong and other Asia was HKD 790,468, while for Mainland China it was HKD 1,216,421 for the six months ended June 30, 2024[17]. - Revenue from the mainland China business decreased by 5.2% to HKD 1,116.6 million, accounting for 61.3% of the group's total revenue[42]. - Revenue from the mainland instant noodle business increased by 8.0% to HKD 173.5 million, attributed to lower raw material costs and cost-effective marketing activities[43]. - Revenue from Hong Kong and other Asian operations decreased by 6.1% to HKD 705.9 million, primarily due to local consumer spending shifting to Shenzhen[35]. Expenses and Costs - The group recognized a net foreign exchange loss of HKD 5,519 for the six months ended June 30, 2024, compared to a loss of HKD 12,722 for the same period in 2023[19]. - The group incurred a loss of HKD 3,147 from the sale of properties, plants, and equipment for the six months ended June 30, 2024[19]. - Research and development expenses remained stable at HKD 17,839,000 in 2024, compared to HKD 17,806,000 in 2023, showing a marginal increase of 0.2%[22]. - The company reported a decrease in miscellaneous income to HKD 6,060,000 in 2024 from HKD 12,517,000 in 2023, a decline of 51.6%[20]. - Total other income decreased to HKD 20,748,000 in 2024 from HKD 24,699,000 in 2023, a decline of 16.0%[20]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.1582 per share for the year ending December 31, 2023, up from HKD 0.1516 per share in 2022, an increase of 4.4%[23]. - The board has resolved not to declare any interim dividend for the six months ended June 30, 2024[57]. Strategic Initiatives - The company plans to continue expanding its product offerings and market presence in Asia and mainland China[8]. - The company continues to focus on product upgrades and cost optimization amidst ongoing economic challenges in Hong Kong and mainland China[32]. - The company aims to enhance product quality and safety, regularly conducting product testing and related R&D[32]. - The company has signed a share purchase agreement to acquire 100% of Gaemi Food Co., Ltd. for 48,000 million Korean Won (approximately 271.7 million HKD), expected to complete around September 2024[55]. Market Conditions and Outlook - The number of inbound tourists to Hong Kong reached 21.1 million in the first half of 2024, representing a year-on-year increase of 64.2%[35]. - Despite weak consumer sentiment in mainland China, overall consumer spending is gradually increasing, with per capita consumption continuing to rise[52]. - The company maintains a cautiously optimistic outlook for long-term business development across regions, focusing on cost control and operational efficiency improvements[52]. Employee and Governance - As of June 30, 2024, the total number of employees is 3,416, with employee costs (excluding director remuneration) amounting to approximately 352.5 million HKD[56]. - The company has established an audit committee in accordance with corporate governance principles, which has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024[58].
日清食品(01475) - 2024 - 中期业绩