Revenue Performance - Total revenue for the six months ended June 30, 2024, was HKD 207,627,000, representing a 6.4% increase from HKD 195,081,000 in the same period of 2023[1]. - Revenue from health products increased by 20.9% to HKD 45,313,000, up from HKD 37,465,000 in the prior year[1]. - Revenue from the sale of concentrated traditional Chinese medicine granules was HKD 150,000,000, compared to HKD 148,058,000 in the previous year, showing a slight increase[18]. - Revenue from Chinese concentrated traditional Chinese medicine granules decreased by 7.3% to HKD 20,675,000, compared to HKD 22,311,000 in the previous year[1]. - The group reported a total segment revenue of HKD 207.6 million, with the Chinese concentrated herbal granules segment contributing HKD 87.7 million and the Hong Kong segment contributing HKD 110.2 million[16]. - The Chinese herbal health products segment reported revenue of HKD 45.3 million, an increase of HKD 7.8 million or 20.9% compared to HKD 37.5 million last year, driven by growth in the mainland market[63]. Financial Performance - The company reported a loss of HKD 18,686,000 for the period, a 50.4% improvement from a loss of HKD 37,675,000 in the same period last year[2]. - The group incurred a net loss of HKD 18.7 million for the six months ended June 30, 2024, with a pre-tax loss of HKD 14.8 million[16]. - The net loss for the first half of 2024 was HKD 18.7 million, an improvement from a net loss of HKD 37.7 million in the same period last year, mainly due to reduced fair value losses and effective cost control[75]. - The gross profit margin for the group was 54.6%, a decrease of 2.8 percentage points from 57.4% in the previous year, primarily due to higher costs of production under new standards[67]. - The company reported a pre-tax loss of HKD 14.765 million for the six months ended June 30, 2024, compared to a loss of HKD 36.514 million in the same period of 2023, indicating a significant improvement[6]. Assets and Liabilities - Non-current assets totaled HKD 476,024,000 as of June 30, 2024, down from HKD 494,395,000 at the end of December 2023[4]. - Current assets decreased to HKD 305,708,000 from HKD 349,568,000 in December 2023[4]. - Total liabilities decreased from HKD 571,089,000 in December 2023 to HKD 510,222,000 as of June 30, 2024[4]. - The company's total equity decreased to HKD 130,471,000 from HKD 153,236,000 in December 2023[5]. - The company's cash and cash equivalents increased to HKD 22,829,000 from HKD 20,126,000 in December 2023[4]. Cash Flow and Financing - Cash flow from operating activities increased to HKD 43.125 million, up from HKD 24.807 million year-over-year, reflecting a growth of approximately 73.8%[7]. - The company recorded a net cash increase of HKD 4.008 million, a recovery from a decrease of HKD 32.560 million in the previous year[8]. - The net cash outflow from investing activities was HKD 6.695 million, an improvement from HKD 8.431 million in the previous year[7]. - The company’s financing activities resulted in a net cash outflow of HKD 32.422 million, compared to HKD 48.936 million in the same period last year[7]. - The group has secured new bank borrowings of HKD 45.8 million during the reporting period and has access to undrawn bank financing of HKD 94.5 million[11]. Cost Control and Operational Efficiency - The company continues to focus on expanding its health product offerings and improving operational efficiency[2]. - The group is implementing cost control measures to improve cash flow and operational efficiency, including restructuring its product portfolio and reducing non-profitable operations[11]. - Sales and distribution expenses for the first half of 2024 were HKD 40.2 million, a decrease of HKD 10.0 million or 19.9% compared to HKD 50.2 million in the same period last year[69]. - Administrative expenses totaled HKD 75.7 million, down HKD 4.9 million or 6.1% from HKD 80.6 million in the previous year, primarily due to reduced clinic operating costs[70]. - R&D costs decreased by HKD 4.0 million or 41.8%, mainly due to a reduction in testing and sampling expenses related to fewer products registered with relevant authorities[71]. Share Options and Capital Management - The company has a share option plan that allows for the issuance of up to 10% of the total issued shares at the time of listing, which is 22,500,000 shares[44]. - The company recognized stock option expenses of HKD 725,000 for the six months ended June 30, 2024, a decrease of 66.3% from HKD 2,147,000 in the same period of 2023[49]. - The total number of shares that may be issued upon the exercise of stock options granted under the plan was 23,962,424 shares, representing approximately 6.05% of the total issued shares as of January 1 and June 30, 2024[92]. - The company has not issued any unexercised or unvested reward shares under the share reward plan during the mid-term period of 2024[96]. - The company has adopted a share reward plan that allows employees and directors who have contributed to the company to participate through awarded shares[95]. Governance and Compliance - The company has complied with all applicable corporate governance codes during the six-month period ending June 30, 2024[97]. - The audit committee, consisting of three independent non-executive directors, has reviewed and approved the interim results for the six months ending June 30, 2024[99]. - All directors confirmed compliance with the standard code of conduct for securities trading during the six months ending June 30, 2024[100]. - The company has adhered to the non-competition agreement established with its major shareholder since June 2015[98]. - There are no known business or interest conflicts involving directors or major shareholders with the company's operations as of the mid-year period[98].
培力农本方(01498) - 2024 - 中期业绩