白花油(00239) - 2024 - 中期财报

Performance Summary The company's H1 2024 revenue grew 4.8% to HKD 132.47 million, with underlying recurring profit up 4.5%, though reported profit fell 15.3% due to expanded fair value losses on investment properties Performance Highlights H1 2024 revenue reached a record HKD 132.47 million, up 4.8%, with underlying recurring profit increasing 4.5%, but reported profit declined 15.3% due to expanded fair value losses on investment properties H1 2024 Performance Summary | Metric | H1 2024 (HK$'000) | H1 2023 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 132,468 | 126,414 | +4.8% | | Reported Profit | 47,407 | 55,993 | -15.3% | | Underlying Recurring Profit | 61,710 | 59,054 | +4.5% | | EPS (Reported) | 15.2 HK cents | 18.0 HK cents | -15.6% | | EPS (Underlying) | 19.8 HK cents | 18.9 HK cents | +4.8% | | Total Dividend Per Share | 9.5 HK cents | 8.5 HK cents | +11.8% | - The primary reason for the decline in reported profit was the expanded fair value losses on investment properties[5][8] - Underlying recurring profit, excluding unrealized fair value changes of financial assets and investment properties, better reflects the Group's core business performance[6] Management Discussion and Analysis Business Review H1 2024 total revenue grew 4.8% to HKD 132.47 million, driven by strong treasury and property investment segments, while healthcare saw moderate growth and reported profit fell 15.3% due to expanded investment property fair value losses Revenue by Business Segment (Six Months Ended June 30) | Business Segment | 2024 (HK$'000) | 2023 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Healthcare | 123,442 | 120,942 | +2.1% | | Property Investment | 4,752 | 4,334 | +9.6% | | Treasury Investment | 4,274 | 1,138 | +275.6% | | Total | 132,468 | 126,414 | +4.8% | Reconciliation of Underlying Recurring Profit to Reported Profit (Six Months Ended June 30) | Item | 2024 (HK$'000) | 2023 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Underlying Recurring Profit | 61,710 | 59,054 | +4.5% | | Unrealized Fair Value Changes of Financial Assets | 481 | 532 | - | | Unrealized Fair Value Changes of Investment Properties | (14,784) | (3,593) | - | | Reported Profit | 47,407 | 55,993 | -15.3% | Operating Review The Group's three business segments showed varied performance, with healthcare growing moderately, property investment revenue up but incurring losses from valuation declines, and treasury investment significantly boosted by higher interest rates Healthcare Healthcare segment revenue grew 2.1% to HKD 123.44 million, with strong growth in North America and Southeast Asia offsetting a slight decline in Greater China, while segment profit increased 4.5% Healthcare Segment Revenue by Region (Six Months Ended June 30) | Region | 2024 (HK$'000) | 2023 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Greater China (Mainland, Hong Kong, Macau) | 95,660 | 98,560 | -2.9% | | Southeast Asia | 24,108 | 20,287 | +18.8% | | North America | 3,495 | 1,882 | +85.7% | | Other Regions | 179 | 213 | -16.0% | | Total Segment Revenue | 123,442 | 120,942 | +2.1% | - Segment profit increased by 4.5% year-on-year to HKD 76.97 million[11] Property Investment Property investment revenue grew 9.6% to HKD 4.75 million due to UK rent increases, but segment results turned to a HKD 10.76 million loss from expanded fair value losses in Hong Kong and Singapore Property Investment Segment Revenue by Region (Six Months Ended June 30) | Region | 2024 (HK$'000) | 2023 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Hong Kong (Office & Residential) | 1,723 | 1,883 | -8.5% | | Singapore (Industrial) | 158 | 159 | -1.0% | | United Kingdom (Retail/Residential) | 2,871 | 2,292 | +25.3% | | Total Segment Revenue | 4,752 | 4,334 | +9.6% | - The segment recorded a loss of HKD 10.76 million, primarily due to increased unrealized fair value losses on investment properties[14][15] Treasury Investment Treasury investment segment revenue, primarily interest income, surged 275.6% to HKD 4.27 million, with underlying recurring segment profit up 67.4%, driven by higher bank deposits and favorable interest rates Treasury Investment Segment Performance (Six Months Ended June 30) | Metric | 2024 (HK$'000) | 2023 (HK$'000) | Change (%) | | :--- | :--- | :--- | :--- | | Segment Revenue | 4,274 | 1,138 | +275.6% | | Underlying Recurring Segment Profit | 3,713 | 2,218 | +67.4% | | Segment Result (Profit) | 4,194 | 2,750 | +52.5% | Financial Review The Group maintains a robust financial position with a 0.5% gearing ratio and 4.4x current ratio, despite increased staff costs and operating expenses, and a 6.1% decline in investment property valuation - Staff costs increased by 11.3% year-on-year to HKD 20.87 million, primarily reflecting annual salary increments[19] - Other operating expenses increased by 29.1% year-on-year to HKD 14.01 million, mainly due to higher advertising and promotion expenses[20] - The investment property portfolio valuation was HKD 240 million as of June 30, 2024, a 6.1% decrease from end-2023, mainly due to the weak Hong Kong office market[25] - The Group maintained an extremely low gearing ratio of 0.5% and a current ratio of 4.4 times, indicating a healthy financial position[26] Outlook Despite an uncertain economic outlook, the Group remains cautiously optimistic for H2 2024, focusing on innovation and market expansion for healthcare growth, while prudently managing property investments amidst valuation pressures - The Group maintains a cautiously optimistic outlook for H2 2024, aiming to capitalize on growth opportunities in core markets to drive sustained growth in the healthcare segment[32] - The property investment segment is expected to face ongoing valuation volatility due to real estate market fluctuations, but the Group will focus on prudent management to secure stable rental income[32] Condensed Interim Financial Information Independent Auditor's Review Report Auditors Fuyue Mazars CPA Limited reviewed the Group's condensed interim financial information, concluding no material non-compliance with HKAS 34 'Interim Financial Reporting' - The auditors issued an unqualified review report on the interim financial information[37] Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2024, revenue grew 4.8% to HKD 132.47 million, but operating profit and profit attributable to owners declined 15.3% to HKD 47.41 million due to expanded investment property revaluation losses Summary of Condensed Consolidated Statement of Comprehensive Income (Six Months Ended June 30) | Item | 2024 (HK$'000) | 2023 (HK$'000) | | :--- | :--- | :--- | | Revenue | 132,468 | 126,414 | | Operating Profit | 60,883 | 68,297 | | Profit Before Tax | 60,443 | 67,863 | | Profit for the Period Attributable to Owners | 47,407 | 55,993 | | Basic Earnings Per Share | 15.2 HK cents | 18.0 HK cents | Condensed Consolidated Statement of Financial Position As of June 30, 2024, total assets increased to HKD 935.07 million, while total equity slightly decreased by 1.8% to HKD 751.41 million, with a notable increase in cash and bank balances Summary of Condensed Consolidated Statement of Financial Position | Item | As at June 30, 2024 (HK$'000) | As at December 31, 2023 (HK$'000) | | :--- | :--- | :--- | | Non-current Assets | 543,454 | 590,191 | | Current Assets | 391,613 | 317,274 | | Total Assets | 935,067 | 907,465 | | Current Liabilities | 90,003 | 44,185 | | Non-current Liabilities | 93,654 | 98,097 | | Total Liabilities | 183,657 | 142,282 | | Total Equity | 751,410 | 765,183 | Condensed Consolidated Statement of Cash Flows H1 2024 net cash from operating activities surged 44.4% to HKD 88.18 million, leading to a net increase in cash and cash equivalents of HKD 76.09 million, with the period-end balance reaching HKD 338.69 million Summary of Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30) | Item | 2024 (HK$'000) | 2023 (HK$'000) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 88,181 | 61,051 | | Net Cash Used in Investing Activities | (11,207) | (631) | | Net Cash Used in Financing Activities | (883) | (572) | | Net Increase in Cash and Cash Equivalents | 76,091 | 59,848 | | Cash and Cash Equivalents at End of Period | 338,689 | 229,463 | Notes to the Condensed Interim Financial Information The notes detail accounting policies, segment information, dividends, EPS, and asset/liability specifics, highlighting healthcare as the core revenue source, declared interim dividends, and fair value changes in investment properties - Operating segment information indicates that the healthcare segment contributed the vast majority of revenue and segment results[48] - The Directors declared an interim dividend of 3.0 HK cents per share and a special interim dividend of 6.5 HK cents per share, totaling 9.5 HK cents per share[56][55] - Fair value changes of investment properties primarily resulted from revaluation losses on properties in Hong Kong and the United Kingdom[57] Disclosure of Interests and Other Information Directors' and Chief Executives' Interests in Securities As of June 30, 2024, Mr. Ngan Wai Shan and Mr. Ngan Fook Wah held 30.46% and 23.51% of shares respectively, with Mr. Jonathan William Brooke holding 12.00% as a substantial shareholder Major Directors' Shareholdings | Director's Name | Total Number of Shares Held | Percentage of Issued Shares | | :--- | :--- | :--- | | Mr. Ngan Wai Shan | 94,912,322 | 30.46% | | Mr. Ngan Fook Wah | 73,274,799 | 23.51% | - Substantial shareholder Mr. Jonathan William Brooke held 37,397,500 shares, representing 12.00% of the issued shares[75][77] Corporate Governance The company adheres to the Corporate Governance Code, with a deviation where the Chairman and CEO roles are combined, though the Board believes sufficient balance of power is maintained through other directors and the Audit Committee - The company complies with the Corporate Governance Code, with a deviation where the roles of Chairman and Chief Executive Officer are combined and held by the same individual, Mr. Ngan Wai Shan[83] - The Audit Committee, comprising three independent non-executive directors, has reviewed the interim financial information and report[85]