Financial Performance - Revenue for the six months ended June 30, 2024, was approximately HKD 1,820,260,000, a decrease of 0.4% from HKD 1,830,477,000 for the same period in 2023[1] - Profit attributable to the company's owners was approximately HKD 288,077,000, down 22.5% from HKD 371,509,000 in the previous year[1] - Basic earnings per share decreased to HKD 26.85 from HKD 34.63, representing a decline of 22.5%[1] - Operating profit (before interest) for the six months ended June 30, 2024, was HKD 94,891, compared to HKD 108,449 in the previous year, reflecting a decrease of about 12.4%[19] - The company reported a net profit of HKD 384,330,000 for the period, down from HKD 482,313,000, a decrease of 20.4%[4] - The basic and diluted earnings per share attributable to the company's owners for the six months ended June 30, 2024, were HKD 288,077, compared to HKD 371,509 for the same period in 2023, representing a decrease of approximately 22.4%[26] Dividends - Interim dividend per share increased to HKD 5.18, compared to HKD 3.45 for the same period last year, reflecting a 50.4% increase[1] - The interim dividend declared for the six months ended June 30, 2024, is HKD 5.18 per ordinary share, an increase from HKD 3.45 per share for the same period in 2023, totaling approximately HKD 55,569,500[27] - The interim dividend declared for the six months ended June 30, 2024, was HKD 0.0518 per share, an increase from HKD 0.0345 per share for the same period in 2023[59] Income and Expenses - Gross profit for the period was HKD 588,491,000, down from HKD 601,023,000, indicating a decrease of 2.1%[3] - Other income increased to HKD 149,223,000 from HKD 143,851,000, showing a growth of 3.0%[3] - Total employee benefits expenses, including directors' remuneration, rose to HKD 298,463 for the six months ended June 30, 2024, compared to HKD 255,799 in the previous year, reflecting an increase of about 16.6%[25] - Research and development expenses included in other operating expenses were HKD 74,400 for the six months ended June 30, 2024, down from HKD 87,375 in the same period of 2023, indicating a decrease of approximately 14.9%[25] - Tax expenses for the six months ended June 30, 2024, totaled HKD 32,465, a slight decrease from HKD 34,408 in the same period of 2023[24] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 22,134,547,000, a slight decrease from HKD 22,292,679,000 at the end of 2023[5] - Cash and cash equivalents decreased to HKD 3,847,064,000 from HKD 4,461,089,000, a decline of 13.8%[5] - Inventory increased to HKD 389,302,000 from HKD 318,690,000, reflecting a growth of 22.1%[5] - Total equity as of June 30, 2024, is HKD 17,274,287, a decrease of 1.36% from HKD 17,512,928 as of December 31, 2023[6] - Total liabilities increased to HKD 4,860,260, up 1.69% from HKD 4,779,751 as of December 31, 2023[6] - Current assets net amount is HKD 7,578,530, down 3.21% from HKD 7,830,868 as of December 31, 2023[6] - Non-current liabilities include bank loans of HKD 1,713,074, slightly up from HKD 1,710,630[6] - Accounts payable increased to HKD 558,532, a rise of 7.74% from HKD 518,398[6] - Other payables and accrued expenses rose to HKD 1,367,464, an increase of 5.61% from HKD 1,294,865[6] - Contract liabilities decreased to HKD 513,717, down 18.73% from HKD 632,444[6] - The company reported a total asset minus current liabilities of HKD 19,163,581, a decrease from HKD 19,464,810[6] Segment Performance - The company operates in six reportable segments, including utilities, pharmaceuticals, hotels, electromechanical, port services, and elevators[11] - The company’s water supply segment reported revenue of approximately HKD 142,300,000, a decrease from HKD 153,000,000 in the previous year, with a profit increase of 6.4% to HKD 18,400,000[42] - The thermal power segment's revenue decreased by 10.9% to approximately HKD 626,400,000, while profit increased to HKD 40,400,000 due to improved operating profit margins[43] - The electricity segment reported a revenue decrease of 3% to approximately HKD 1,143,500,000, contributing a profit of HKD 28,300,000, a decrease of HKD 1,100,000 from the previous year[44] - The pharmaceutical segment reported revenue of approximately HKD 895.4 million for the six months ending June 30, 2024, an increase of 7.4% compared to HKD 833.4 million in the same period last year[45] - Revenue from the production and sale of chemical drugs, traditional Chinese medicine, and other health products was approximately HKD 811.4 million, up 9.9% from HKD 738 million year-on-year, primarily driven by increased contributions from Jiangxi Qingchun Kangyuan Pharmaceutical Co., Ltd.[45] - The profit for the pharmaceutical segment was approximately HKD 62.3 million, down from HKD 79.4 million in the previous year[45] - The revenue from the drug research institute decreased by 52% to approximately HKD 130.2 million, resulting in a loss of approximately HKD 50.9 million, compared to a loss of HKD 33.5 million in the same period last year[45] - The hotel segment, Hong Kong Courtyard Hotel, reported revenue of approximately HKD 66.6 million, a 10.3% increase from HKD 60.4 million year-on-year, with a profit of approximately HKD 15.2 million compared to HKD 12.2 million last year[48] - The electromechanical segment reported revenue of approximately HKD 89.7 million, an increase of 11.6% from HKD 80.4 million, but incurred a loss of approximately HKD 58 million, worsening from a loss of HKD 21.8 million in the previous year[49] - Tianjin Port Development Holdings Limited's revenue increased by 8.1% to approximately HKD 6.7463 billion, while the attributable profit decreased by 12% to approximately HKD 418.5 million[50] - Otis Elevator (China) reported revenue of approximately HKD 8.7909 billion, a decrease of 1.4% year-on-year, with a profit contribution of approximately HKD 155.1 million, down 23.4% from the previous year[51] Investments and Acquisitions - On June 28, 2024, the company agreed to sell 24.65% equity in Tianjin Tanabe Pharmaceutical Co., Ltd. for RMB 120,292,000 (approximately HKD 131,755,000) to Yuanda Pharmaceutical (China) Co., Ltd.[38] - The company sold 15% equity in Tianjin Pharmaceutical Group Finance Co., Ltd. for RMB 87,824,000 (approximately HKD 96,192,000) to Jin Yao Da Ren Tang Group Co., Ltd. as of December 31, 2023, with the sale still pending completion as of June 30, 2024[38] - The company conditionally agreed to acquire 65% equity in Qingchun Kangyuan Group for a total cash consideration of RMB 136,991,855 (approximately HKD 150,706,000), completed in February 2024[39] - From the acquisition of Qingchun Kangyuan Group, the company recorded revenue of HKD 132,567,000 and net profit of HKD 6,742,000 from the acquisition date to June 30, 2024[40] Financial Position and Strategy - The company expects to continue focusing on market expansion and new product development to drive future growth[20] - The company anticipates continued stable development in the Chinese economy due to the implementation of various reform measures, while maintaining a prudent and proactive strategy for long-term growth[54] - As of June 30, 2024, the total cash and bank loans of the group were approximately HKD 6,174,100,000 and HKD 1,972,700,000, respectively, compared to HKD 6,604,700,000 and HKD 1,810,600,000 as of December 31, 2023[55] - The debt-to-equity ratio as of June 30, 2024, was approximately 15.8%, up from 14.4% as of December 31, 2023[55] - The group had outstanding bank loans totaling HKD 1,972,700,000, with HKD 1,713,100,000 linked to sustainability performance indicators[55] - The group has pledged restricted bank deposits of HKD 144,400,000 and properties, plants, and equipment valued at HKD 6,500,000 as collateral for general bank credit facilities[57] - The group is actively monitoring foreign exchange rate fluctuations to manage its foreign exchange risk[55] - The group did not enter into any derivative contracts or hedging transactions during the review period[55] - The group has complied with the corporate governance code as per the listing rules throughout the review period[62]
天津发展(00882) - 2024 - 中期业绩