Financial Performance - Revenue increased by 10.9% to approximately HK$1,023.4 million for the six months ended June 30, 2024, compared to approximately HK$922.8 million for the same period in 2023[5]. - Gross profit rose by 9.9% to approximately HK$244.9 million, up from approximately HK$222.9 million in the prior year[5]. - Operating profit was approximately HK$64.0 million, an increase from approximately HK$56.3 million for the six months ended June 30, 2023[5]. - Profit attributable to owners of the Company was approximately HK$53.3 million, compared to approximately HK$38.5 million for the same period in 2023[5]. - Basic and diluted earnings per share for the six months ended June 30, 2024, were HK7.4 cents, up from HK5.3 cents in the same period last year[9]. - Profit for the period reached HK$51,667,000, significantly higher than HK$31,691,000 in 2023, representing a year-over-year increase of 63.1%[39]. - Total comprehensive income for the period was HK$43,866,000, compared to HK$26,681,000 in 2023, indicating a substantial improvement[39]. - Profit for the period attributable to owners of the Company for the six months ended 30 June 2024 was HK$53,273,000, an increase from HK$38,497,000 in the same period of 2023, representing a growth of 38.5%[87]. - Basic earnings per Share attributable to owners of the Company increased to 7.4 HK cents for the six months ended 30 June 2024, compared to 5.3 HK cents for the same period in 2023, reflecting a rise of 39.6%[87]. Dividends - An interim dividend of HK3.0 cents per share was declared for the six months ended June 30, 2024, compared to HK2.0 cents per share for the same period in 2023[5]. - The Board declared an interim dividend of HK3.0 cents per share, compared to HK2.0 cents per share for the same period last year[9]. - The total dividend paid during the six months ended 30 June 2024 was approximately HK$36,713,000, including an interim dividend of HK3.0 cents per Share, up from HK2.0 cents per Share in the same period of 2023[89]. Assets and Liabilities - As of June 30, 2024, cash and cash equivalents amounted to approximately HK$314.4 million, down from HK$375.1 million as of December 31, 2023[9]. - The Group's net assets increased to approximately HK$1,200.9 million as of June 30, 2024, compared to HK$1,193.2 million at the end of 2023[9]. - Total assets as of June 30, 2024, were HK$1,869,009,000, down from HK$1,965,228,000 as of December 31, 2023[38]. - Total liabilities decreased to HK$668,118,000 as of June 30, 2024, from HK$772,012,000 as of December 31, 2023[38]. - Total current assets decreased to HK$1,305,554,000 as of June 30, 2024, from HK$1,406,916,000 as of December 31, 2023[37]. - Non-current liabilities totaled HK$20,509,000 as of June 30, 2024, a decrease from HK$23,416,000 as of December 31, 2023[38]. Borrowings and Liquidity - Secured bank borrowings as of June 30, 2024, were HK$2.7 million with an effective interest rate of 1.7% per annum over 1-month HIBOR[12]. - The Group actively manages its liquidity position with standby banking facilities to support daily operations and future capital demands[9]. - As of June 30, 2024, the Group's total borrowings amounted to approximately HK$37.2 million, a decrease from HK$49.2 million as of December 31, 2023[13]. - The total carrying amount of assets pledged as security for borrowings was HK$52,684,000 as of June 30, 2024, down from HK$54,238,000 as of December 31, 2023[76]. - The undrawn banking facilities of the Group were approximately HK$395,852,000 as of June 30, 2024, compared to HK$397,976,000 as of December 31, 2023[76]. Segment Performance - Revenue from the Group's hospitality supplies business for the six months ended June 30, 2024, increased by 14.2% to approximately HK$857.8 million, contributing 83.8% to the Group's total revenue[20]. - Revenue from the OS&E business was approximately HK$82.3 million for the six months ended 30 June 2024, representing an increase of 23.8% compared to HK$66.5 million for the same period in 2023[21]. - Revenue from the health care and hygienic products business was approximately HK$83.3 million for the six months ended June 30, 2024, down from HK$105.3 million in the same period in 2023, contributing 8.2% to total revenue[22]. - Revenue from the hospitality supplies business in the PRC, Hong Kong, North America, Europe, other Asia Pacific regions, and Australia for the six months ended June 30, 2024, accounted for 27.4%, 12.8%, 20.5%, 14.5%, 20.6%, and 4.0% of total segment revenue, respectively[20]. Operational Strategies - The Company continues to focus on enhancing its product offerings and market presence[6]. - Future strategies include potential market expansion and new product development initiatives[6]. - The Group aims to become an excellent international corporate brand specializing in hospitality supplies and personal care products, focusing on sustainable development[22]. - The Group plans to deepen its business in Cambodia and neighboring regions to leverage low tariffs and vast business opportunities in Southeast Asia[22]. - The Group will continue to adopt flexible market strategies to strengthen market penetration and consolidate its leading market position in the industry[23]. Employee and Management Information - The total number of employees as of June 30, 2024, was approximately 7,700, with employee benefit expenses amounting to approximately HK$267.9 million for the six months ended June 30, 2024[23]. - The remuneration of employees is structured based on market terms and individual merits, with regular reviews and various benefits provided[23]. - Key management compensation increased to HK$3,585,000 in 2024 from HK$3,392,000 in 2023, reflecting a rise of 5.7%[103]. - Total contributions to pension plans for key management were HK$3,646,000 in 2024, compared to HK$3,454,000 in 2023, marking an increase of 5.6%[103]. Financial Risks and Compliance - The Group's activities are exposed to various financial risks, including market risk, credit risk, and liquidity risk[49]. - The Group complied with all provisions of the Corporate Governance Code during the six months ended June 30, 2024, except for the lack of a designated chief executive officer[32]. - The Group is continuously enhancing risk management capabilities to ensure long-term stable development amid a complex macroeconomic environment[23]. - The Group does not expect the newly issued amendments to standards and interpretations to significantly affect its financial information[48]. Shareholder Information - Directors' interests in shares as of June 30, 2024, include Mr. CHING Chi Fai holding 22,690,000 shares and a total interest of 220,356,200 shares, representing approximately 30.01% of issued shares[25]. - The total number of issued shares as of June 30, 2024, was 734,262,697 shares[27]. - The company disclosed that none of the directors had any interest or short positions in shares or debentures of the company or its associated corporations as of June 30, 2024[29].
明辉国际(03828) - 2024 - 中期财报