Financial Performance - The Group recorded a revenue increase of 1% to HK$2,681 million for the first half of FY2024/25[7] - Profit for the period increased by 46% to HK$188 million, supported by prudent cost management[7] - Revenue for the six months ended December 31, 2024, increased to HK$2,680,504, representing a growth of 0.8% compared to HK$2,659,166 in 2023[47] - Gross profit rose to HK$633,670, up 8.8% from HK$582,299 in the previous year[47] - Total comprehensive income for the period was HK$174,554, compared to HK$160,822 in 2023, indicating an increase of 8.5%[51] - The profit for the period increased to HK$188,185, a significant increase of 46.1% from HK$128,873 in 2023[51] - Basic and diluted earnings per share improved to HK$0.80, compared to HK$0.55 in the same period last year, reflecting a growth of 45.5%[47] - Reportable segment profit from operations for the six months ended December 31, 2024, was HK$248,785,000, an increase of 45.5% compared to HK$170,809,000 in 2023[91] - Consolidated profit before taxation for the same period was HK$233,811,000, up 47.7% from HK$158,185,000 in 2023[91] Segment Performance - The Food segment's revenue declined by 1% to HK$2,212 million, while operating profit increased by 54% to HK$194 million[13] - The Home Care segment's revenue grew by 10% to HK$469 million, with operating profit rising by 23% to HK$54 million[20] - Revenue from external customers in the Food segment was HK$2,211,834, while the Home Care segment generated HK$468,670, contributing to the total revenue of HK$2,680,504[87] - The reportable segment profit from operations for the Food segment was HK$194,360,000 and for the Home Care segment was HK$54,425,000, totaling HK$248,785,000 for the six months ended December 31, 2024[87] Cash and Liquidity - Cash balance as of 31 December 2024 was HK$1,896 million, an increase of 11% compared to the previous financial year end[8] - The group had a cash balance of HK$1,896 million as of December 31, 2024, up from HK$1,706 million on June 30, 2024[31] - Cash and cash equivalents at December 31, 2024, amounted to HK$1,445,907,000, up from HK$799,189,000 at the end of 2023, marking an increase of 81.2%[63] - The Group has banking facilities available amounting to HK$583 million as of December 31, 2024[31] Cost Management and Efficiency - Gross profit margin improved by 1.7% to 23.6%, driven by favorable trends in wheat and oil prices, sales mix optimization, and production cost efficiency[7] - The company reported a decrease in selling and distribution expenses to HK$315,357, down from HK$351,095, a reduction of 10.2%[47] - The group is focusing on cost efficiencies and supply chain optimization to navigate a challenging global economic outlook for 2025[27] - Strategic product and distribution initiatives in the Home Care segment have contributed to improved underlying profitability despite competitive pressures[20] Capital Expenditure and Investments - The group invested HK$33 million in capital expenditure for plant equipment during the six months ended December 31, 2024, compared to HK$26 million in the same period of 2023[40] - The Group acquired property, plant, and equipment at a cost of HK$10,052,000 during the six months ended December 31, 2024, down from HK$20,030,000 in 2023[123][124] - Additions to right-of-use assets amounted to HK$11,942,000, significantly higher than HK$3,870,000 in the previous year, indicating increased capitalized lease payments[122][126] - The company had capital expenditure authorized and contracted for amounting to HK$26,634,000, compared to HK$9,319,000 as of June 30, 2024[166] Future Outlook and Strategy - The group plans to continue developing new product categories for the remainder of the financial year to enhance market presence[23] - The Group is focusing on enhancing its premium product offerings and expanding market presence beyond the Greater Bay Area[19] - A new home care plant in Conghua, Guangdong, is expected to commence operations in FY2026/27 to scale up production capacity and R&D capabilities[26] - The group maintains a cautious optimism regarding future performance amidst subdued consumer confidence in the region[29] Shareholder Information - An interim dividend of HK$0.15 per share was declared, amounting to approximately HK$37 million, compared to HK$0.13 per share and HK$32 million in the previous year[12] - The Group's issued share capital remained stable at HK$672,777,000 with 243,354,000 ordinary shares as of both 31 December 2024 and 30 June 2024[142] - The weighted average number of ordinary shares in issue during the interim period was 234,739,000, slightly down from 234,898,000 in 2023[118][119] - As of December 31, 2024, Dr. WHANG Sun Tze holds a total of 27,543,069 shares in the company, representing approximately 11.32% of the total shares issued[186] Taxation and Regulatory Compliance - Current tax for Hong Kong profits increased to HK$6,739,000 in 2024 from HK$4,575,000 in 2023, representing a growth of 47.4%[99] - Current tax outside Hong Kong surged to HK$35,840,000 in 2024, compared to HK$16,257,000 in 2023, marking a significant increase of 120.5%[99] - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period, ensuring consistency in financial reporting[74] - The Group's financial report is unaudited, and the information provided is based on the same accounting policies adopted in the previous financial year[74]
南顺(香港)(00411) - 2025 - 中期财报