Financial Performance - The group's revenue for the first half of 2024 was HKD 435.0 million, a decrease of 34.7% compared to HKD 666.3 million in the same period of 2023[2] - Gross profit for the first half of 2024 was HKD 107.8 million, down 37.7% from HKD 173.1 million in the first half of 2023[2] - Net profit for the first half of 2024 was HKD 21.1 million, a decline of 75.7% from HKD 87.0 million in the first half of 2023[2] - The group reported a total comprehensive income of HKD 20.4 million for the first half of 2024, compared to HKD 85.5 million in the same period of 2023[3] - The adjusted profit before tax for the group was HKD 21,119 thousand for the first half of 2024, down from HKD 87,047 thousand in the same period of 2023, representing a decline of 75.8%[15] - The company reported a net profit attributable to equity holders of HKD 21,009 for the six months ended June 30, 2024, a decline of 76.0% from HKD 87,528 in 2023[22] - The group recorded revenue of approximately HKD 435.0 million for the fiscal year ending December 31, 2023, a decrease of 34.7% compared to HKD 666.3 million in the previous year[35] - Net profit significantly dropped by 75.7% to HKD 21.1 million, down from HKD 87.0 million in the first half of 2023, primarily due to a lack of fair value gains from financial assets and decreased operational net profit[35] Dividends and Shareholder Returns - The board has resolved not to declare any interim dividend for the first half of 2024 (interim dividend for the first half of 2023: HKD 0.035)[2] - The company did not declare any dividends for the six months ended June 30, 2024, compared to HKD 0.035 per share in 2023[25] - The board does not recommend any interim dividend for the review period, compared to HKD 0.035 per share in the same period last year[66] Assets and Liabilities - Total current assets increased to HKD 695.9 million as of June 30, 2024, compared to HKD 666.6 million as of June 30, 2023[5] - Total assets amounted to HKD 1,012.5 million as of June 30, 2024, compared to HKD 988.9 million as of June 30, 2023[7] - Total liabilities increased to HKD 468.2 million as of June 30, 2024, from HKD 445.4 million as of June 30, 2023[7] - The company's equity attributable to shareholders was HKD 536.9 million as of June 30, 2024, compared to HKD 536.2 million as of June 30, 2023[7] - The group’s total liabilities decreased to HKD 468,159 thousand as of June 30, 2024, from HKD 445,405 thousand as of December 31, 2023[16] Revenue Segmentation - The distribution segment reported revenue of HKD 343,798 thousand for the first half of 2024, down from HKD 398,565 thousand in the same period of 2023, reflecting a decrease of 13.7%[15] - The e-commerce segment generated revenue of HKD 101,122 thousand for the first half of 2024, compared to HKD 15,719 thousand in the same period of 2023, indicating significant growth[15] - The retail store segment reported revenue of HKD 99,794 thousand for the first half of 2024, compared to HKD 15,719 thousand in the same period of 2023, showing substantial improvement[15] - Revenue from the Hong Kong market increased to HKD 358,406, up 19.0% from HKD 301,011 in the previous year[18] - Revenue in Hong Kong increased by 19.1% to HKD 358.4 million, driven by the accounting impact of the acquisition of 康寧行[43] - Revenue in Singapore rose by 30.4% to HKD 28.0 million, compared to HKD 21.5 million in the previous year, due to ongoing development and sales expansion efforts[41] Operational Insights - The group’s operating segments include distribution, e-commerce, and retail store, with performance monitored separately for resource allocation and evaluation[13] - The company plans to launch multiple new products in the second half of 2024, including upgraded versions of popular items[38] - The company has established procurement centers in various countries, including Japan, South Korea, and several Southeast Asian nations, to diversify its product offerings[40] - The company aims to focus resources on higher-margin private label products and expand its international business, particularly in Southeast Asia[42] Market Conditions and Strategic Moves - The group continues to adapt its strategies in response to the challenging operating environment, focusing on expanding offline retail channels[35] - The health supplement market is expected to grow due to increasing health awareness and favorable policies in the Greater Bay Area[62] - The number of visitors to Hong Kong increased by 78% year-on-year to approximately 18 million in the first five months of 2024, although average spending per visitor dropped significantly[33] - The retail sales value of traditional Chinese medicine products in Hong Kong decreased by over 15.9% in the first half of 2024[33] Corporate Governance and Compliance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[67] - The audit committee has reviewed the unaudited condensed consolidated financial statements for the review period, confirming they are prepared in accordance with applicable accounting standards[70] - The company has adopted a set of securities trading rules for its directors, which are not less stringent than the standard rules outlined in the listing rules[69] Employee and Operational Costs - The total number of employees as of June 30, 2024, is 250, an increase from 208 employees as of June 30, 2023[65] - Employee costs for the review period amounted to approximately HKD 31.5 million, compared to HKD 30.9 million in the same period last year[65] Investments and Acquisitions - The group acquired a 61% stake in 康寧行 in May 2023, which was further increased to 70% in March 2024, integrating its performance into the group's financial results[35] - The company completed the sale of 51% equity in CWA on September 30, 2023[59] - The group completed the sale of 51% of CWA for a total consideration of HKD 130 million, effective September 30, 2023, resulting in CWA no longer being consolidated in the group's financial statements[57]
满贯集团(03390) - 2024 - 中期业绩