Financial Performance - In the first half of 2024, the company achieved revenue of RMB 811.3 million, a decrease of 3.7% compared to the same period in 2023, and recorded a profit of RMB 69.1 million, down 30.1% year-on-year[17]. - The company's revenue decreased by 3.7% from RMB 842.8 million in the six months ended June 30, 2023, to RMB 811.3 million in the same period of 2024[30]. - The group's tea sales revenue decreased by 6.4% from RMB 611.1 million for the six months ended June 30, 2023, to RMB 571.8 million for the six months ending June 30, 2024[33]. - Gross profit decreased by 8.3% from RMB 462.4 million to RMB 424.1 million, with the gross margin declining from 54.9% to 52.3% due to adjustments in tea product categories and a decrease in retail proportion[34]. - The group's net profit decreased by 30.1% from RMB 98.9 million to RMB 69.1 million, with the net profit margin dropping from 11.7% to 8.5% due to reduced revenue and gross margin[40]. - Basic and diluted earnings per share were both RMB 0.06, down from RMB 0.09 in the same period last year[80]. - The interim dividend declared is HKD 0.03 per share (equivalent to RMB 0.027), compared to HKD 0.05 per share (equivalent to RMB 0.046) for the same period last year[52]. - The total dividends paid for the six months ended June 30, 2024, amounted to RMB 120,669,000, compared to RMB 126,232,000 for the same period in 2023, representing a decrease of 4.5%[162]. Sales and Revenue Breakdown - Sales of tea accounted for 70.5% of total revenue in the first half of 2024, down from 72.5% in the same period of 2023, with revenue of RMB 571.8 million[31]. - Sales of tea food increased to RMB 110.1 million, representing 13.6% of total revenue, compared to RMB 107.8 million and 12.8% in the previous year[31]. - Revenue from tea food sales increased to RMB 110,100,000, up 2.4% from RMB 107,771,000 in the previous year[108]. - Revenue from tea utensils rose to RMB 101,728,000, an increase of 9.4% compared to RMB 93,020,000 in the same period last year[108]. Operational Developments - The company is actively expanding its customer loyalty programs and enhancing marketing strategies to improve operational efficiency and customer retention[17]. - The company is focusing on optimizing its sales network in China to enhance the coverage of its tea product sales[19]. - The company plans to expand its retail network in China, focusing on high-traffic areas in selected cities and increasing penetration in third- and fourth-tier cities[24]. - The company has established a food R&D department to develop diverse traditional foods, including pork crisps and instant bird's nest[22]. - The company is expanding its production capacity by increasing the number of processing bases, with existing facilities in Fujian, Sichuan, Zhejiang, Guangxi, and Guizhou provinces[27]. - The company continues to develop new tea-related products to meet changing consumer preferences and trends, including tea beverages under the "放牛斑" brand[24]. Cost Management and Financial Health - The company has implemented measures to control costs while improving employee welfare and training[17]. - Administrative expenses increased by 4.0% from RMB 137.7 million to RMB 143.2 million, primarily due to rising labor and depreciation costs[35]. - Cash and cash equivalents increased by 25.8% from RMB 275.1 million to RMB 346.1 million, primarily due to increased cash generated from operations and borrowings[40]. - Total bank borrowings rose from RMB 521.1 million to RMB 585.7 million, with the capital debt ratio increasing from 22.6% to 25.3% due to higher total borrowings and the inclusion of lease liabilities in total debt[41]. - The company has sufficient working capital and financial resources to support daily operations as of June 30, 2024[46]. Market Conditions and Future Outlook - The macroeconomic environment remains challenging with rising inflation and geopolitical tensions, impacting overall consumer spending[17]. - The company anticipates a gradual recovery in consumer demand driven by government policies aimed at boosting domestic consumption[17]. - The company expects the Chinese retail market to gradually recover from COVID-19 disruptions in the second half of 2024, aiming to maintain market share[22]. Shareholder Information - As of June 30, 2024, the total issued shares amounted to 1,086,130,460, including 35,000 shares repurchased for cancellation but not yet cancelled[64]. - The major shareholder, 周楠楠女士, holds 455,199,028 shares, which is 41.91% of the total shares[63]. - Discerning Group Limited holds 188,789,000 shares, representing 17.38% of the total shares[63]. - UBS TC (Jersey) Ltd. is the trustee for KCL Trust, which holds 378,273,000 shares, accounting for 34.83% of the total shares[63]. - The company has confirmed compliance with the standard code for securities trading by all directors for the six months ending June 30, 2024[67]. Corporate Governance - The company maintains high corporate governance standards and has complied with the corporate governance code as of June 30, 2024[66]. - The audit committee has reviewed the interim financial results for the six months ended June 30, 2024[74]. - The interim report will be available on the Hong Kong Stock Exchange and the company's website for public access[75].
天福(06868) - 2024 - 中期财报