Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 1,582,285 thousand, representing a 3.0% increase from RMB 1,535,704 thousand in the same period of 2023[2] - Gross profit for the same period was RMB 709,254 thousand, slightly up by 0.4% from RMB 706,732 thousand[2] - EBITDA decreased by 40.2% to RMB 262,021 thousand, with an EBITDA margin of 16.6%, down from 28.5% in the previous year[2] - Operating profit fell by 64.6% to RMB 100,287 thousand, resulting in an operating margin of 6.3%, compared to 18.4% in the prior year[2] - Net profit for the period was RMB 46,286 thousand, a significant decline of 76.9% from RMB 200,353 thousand in the same period last year[2] - Earnings attributable to equity holders of the company were RMB 29,662 thousand, down 80.7% from RMB 153,970 thousand[2] - Basic and diluted earnings per share decreased to RMB 0.92 from RMB 4.77, reflecting an 80.7% drop[2] - Adjusted EBITDA was RMB 356,172 thousand, down 21.7% from RMB 455,077 thousand, with an adjusted EBITDA margin of 22.5%[2] Assets and Liabilities - Total assets as of June 30, 2024, were RMB 15,438,254 thousand, a decrease from RMB 16,002,111 thousand as of December 31, 2023[6] - Cash and bank deposits amounted to RMB 2,183,601 thousand, down from RMB 2,539,493 thousand at the end of 2023[6] - As of June 30, 2024, total equity amounted to RMB 14,170,258 thousand, a decrease from RMB 14,271,137 thousand as of December 31, 2023, representing a decline of approximately 0.8%[7] - The total liabilities decreased to RMB 1,267,996 thousand from RMB 1,730,974 thousand, indicating a reduction of about 26.7%[7] Segment Performance - The segment performance for the flavor and food ingredients business showed a profit of RMB 137,858 thousand, while the tobacco raw materials segment reported a loss of RMB 3,417 thousand[13] - The group's sales revenue for the flavor and food ingredients business was approximately RMB 652 million, a decrease of 4.3% year-on-year, accounting for about 41.2% of total revenue[45] - The operating profit for the flavor and food ingredients segment was approximately RMB 138 million, down 42.1% year-on-year, with an operating profit margin of 21.1%, a decrease of 13.8 percentage points[45] - The sales revenue for the tobacco raw materials business was approximately RMB 164 million, a decrease of 12.5% year-on-year, accounting for about 10.4% of total revenue[50] Research and Development - Research and development expenses increased to RMB 121,362,000 for the six months ended June 30, 2024, compared to RMB 116,321,000 in 2023, representing a growth of 4.4%[19] - Research and development expenses amounted to approximately RMB 121 million, representing 7.7% of sales revenue, an increase of 0.1 percentage points year-on-year[58] Cash Flow and Financing - The net cash generated from investment activities for the six months ended June 30, 2024, was RMB 39,886,000, compared to a net cash outflow of RMB 1,261,019,000 for the same period in 2023[74] - The net cash used in financing activities for the six months ended June 30, 2024, was RMB 444,621,000, which included repayment of bank loans of RMB 374,250,000[75] - Total loans as of June 30, 2024, were RMB 219,000,000, significantly reduced from RMB 455,250,000 as of December 31, 2023, marking a decrease of about 52.1%[31] Expenses - Total government grants received decreased to RMB 68,021,000 in 2024 from RMB 91,953,000 in 2023, indicating a reduction of 26%[17] - Total expenses for employee benefits increased to RMB 370,992,000 in 2024 from RMB 309,362,000 in 2023, reflecting a rise of 19.9%[19] - Selling and marketing expenses increased by 16.5% to RMB 165,416,000, representing about 10.5% of total revenue, up from 9.2% in the previous year[66] - Administrative expenses rose by 17.7% to RMB 458,285,000, accounting for approximately 29.0% of total revenue, an increase of 3.6 percentage points from the previous year[67] Dividends and Shareholder Returns - The company plans to declare an interim dividend of RMB 0.3 per share for the six months ended June 30, 2024, compared to RMB 1.6 cents per share in 2023[27] - The company declared an interim cash dividend of HKD 0.3 per share and a special dividend of HKD 3.2 per share for the six months ending June 30, 2024, compared to HKD 1.6 and HKD 1.9 per share in 2023 respectively[86] Operational Strategies - The company plans to continue expanding its product lines in the flavor and food ingredients sector, focusing on R&D and innovation[12] - The group is focusing on expanding overseas markets and implementing lean production strategies to enhance efficiency and reduce costs[39] - The company is focusing on digital transformation with four operational platforms, improving operational efficiency and data management capabilities[60] Impairments and Losses - The decline in operating profit was primarily due to a share-based compensation expense of approximately RMB 42.18 million related to a stock incentive plan approved on January 5, 2024[43] - The group recognized goodwill impairment of approximately RMB 29.31 million and asset impairment of approximately RMB 20.19 million during the reporting period[43] - The company has adjusted the future profit forecast for Yancheng Chunzhu due to external economic challenges, confirming a goodwill impairment of approximately RMB 29.31 million[55] Market Conditions and Future Outlook - The company is evaluating the impact of new accounting standards on its financial statements, which may affect future reporting[11] - The group plans to focus on domestic and Southeast Asian market expansion, new product development, and cost reduction strategies to enhance operational efficiency[61]
华宝国际(00336) - 2024 - 中期业绩