Financial Performance - For the six months ended September 30, 2024, revenue was approximately HKD 399.0 million, an increase of about 22.1% compared to HKD 326.8 million in the same period of 2023[2]. - Operating profit for the same period was approximately HKD 121.6 million, up about 41.7% from HKD 85.8 million in 2023[2]. - Profit attributable to equity holders of the company was approximately HKD 95.9 million, representing a 53.4% increase from HKD 62.5 million in the previous year[2]. - The total comprehensive income for the period was HKD 95.0 million, compared to HKD 61.9 million in the same period of 2023[4]. - Basic and diluted earnings per share for the period were HKD 11.63, compared to HKD 6.87 in the previous year[7]. - The group reported external customer revenue of HKD 398,953 thousand for the six months ended September 30, 2024, compared to HKD 326,828 thousand for the same period in 2023, representing a growth of approximately 22%[25]. - The gross profit for the reportable segments was HKD 205,888 thousand for the six months ended September 30, 2024, up from HKD 171,122 thousand in 2023, indicating an increase of about 20%[26]. - The adjusted EBITDA for the group was HKD 144,059 thousand for the six months ended September 30, 2024, compared to HKD 109,288 thousand in 2023, reflecting a growth of approximately 32%[26]. - The health supplement segment reported revenue of HKD 48,594 thousand for the six months ended September 30, 2024, up from HKD 34,967 thousand in 2023, which is an increase of approximately 39%[25]. - The group’s healthcare business recorded revenue of HKD 399.0 million, an increase of 22.1% compared to the previous period[56]. - Gross profit increased to HKD 205.9 million, reflecting a growth of 20.3% year-on-year[56]. - Net profit attributable to equity holders rose by 53.4% to HKD 95.9 million[56]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.055 per share, totaling approximately HKD 45.2 million, a 59.4% increase from HKD 0.0345 per share (totaling HKD 31.0 million) in the same period last year[2]. - The interim dividend declared was HKD 5.50 per share, up from HKD 3.45 per share in the previous year, totaling HKD 45,210,000 compared to HKD 30,959,000[42]. - The board has approved a share buyback program worth HKD 200 million to enhance shareholder value and support stock price stability[144]. Assets and Liabilities - Non-current assets as of September 30, 2024, amounted to HKD 1,006.0 million, a slight decrease from HKD 1,021.2 million as of March 31, 2024[9]. - Current assets totaled HKD 403.4 million, an increase from HKD 367.5 million as of March 31, 2024[9]. - Current liabilities were HKD 243.9 million, compared to HKD 221.6 million in the previous period[9]. - Total equity attributable to equity holders of the company was HKD 1,012.0 million, up from HKD 970.7 million as of March 31, 2024[12]. - The total non-current assets as of September 30, 2024, amounted to HKD 998,546,000, a slight decrease from HKD 1,009,150,000 as of March 31, 2024[30]. - As of September 30, 2024, trade payables amounted to HKD 17,033 million, a decrease of 23.5% from HKD 22,171 million on March 31, 2024[1]. - Other payables and accrued expenses increased to HKD 87,494 million from HKD 80,538 million, reflecting a growth of 8.1%[1]. - As of September 30, 2024, bank loans decreased from HKD 115.0 million on March 31, 2024, to HKD 70.0 million, due to partial repayment of bank loans[114]. - The net capital debt ratio was zero as of September 30, 2024, indicating no bank loans after accounting for cash and cash equivalents[117]. Costs and Expenses - The group’s financing costs decreased to HKD 2,936 thousand for the six months ended September 30, 2024, from HKD 4,138 thousand in 2023, showing a reduction of about 29%[26]. - The net other income for the group was a loss of HKD 56,966 thousand for the six months ended September 30, 2024, compared to a loss of HKD 66,961 thousand in 2023, indicating an improvement[26]. - The group’s administrative and other operating expenses increased to HKD 36,941 thousand for the six months ended September 30, 2024, from HKD 25,273 thousand in 2023, representing an increase of approximately 46%[26]. - Employee costs totaled approximately HKD 52.9 million, with a notable increase of 30.0% in employee costs from the previous year[81][98]. - Material costs accounted for approximately 81% of total sales costs, remaining stable compared to the previous period[98]. Market and Strategic Initiatives - The retail environment remains challenging, but the company achieved significant results due to its rich product portfolio and strong brand management[54]. - The company strategically focuses on core growth plans to strengthen its position in the brand healthcare market[55]. - The company is enhancing its digital marketing investments, particularly on platforms like Xiaohongshu and Douyin, to attract younger consumers[62]. - The company is strategically enhancing its brand presence in mainland China by establishing flagship stores on Tmall International for various products, significantly improving brand image and recognition among Chinese consumers[71]. - The company plans to expand its market presence in the Greater Bay Area, targeting a 25% increase in market share within the next two years[144]. - A strategic acquisition of a local herbal product company is anticipated to enhance the company's product portfolio and is expected to close by Q1 2025[144]. Corporate Governance and Compliance - The company has complied with all applicable laws and regulations in all material aspects during the reporting period[131]. - The board emphasizes the importance of high standards of corporate governance to protect shareholder interests and enhance corporate value[132]. - The company has adopted the corporate governance code as its own governance principles and has complied with all relevant provisions[133]. - The audit committee consists of three independent non-executive directors, responsible for overseeing the integrity of the company's financial statements[137]. - The interim results have been reviewed by an independent auditor, with no reservations noted in the review report[138]. Future Outlook - The company expects to achieve a revenue growth target of 10% for the fiscal year 2025, driven by new product launches and market expansion strategies[144]. - Research and development efforts have led to the introduction of three new herbal medicine products, which are expected to contribute an additional HKD 50 million in revenue by the end of fiscal year 2025[144]. - The company has allocated HKD 100 million for technology upgrades to enhance production efficiency and product quality in the upcoming fiscal year[144]. - The company maintains a positive outlook for long-term growth, supported by increasing health awareness and government policies favoring traditional Chinese medicine[78].
健倍苗苗(02161) - 2025 - 中期业绩