凯富善集团控股(08512) - 2025 - 中期业绩

Financial Highlights Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, Group revenue decreased by 9.0% year-on-year to HK$370 million, gross profit significantly declined by 32.2% to HK$114 million. Due to reduced gross profit and lower net other income, profit attributable to owners of the Company sharply decreased by 52.2% year-on-year to HK$45.15 million, and basic earnings per share decreased to 4.91 HK cents Key Financial Performance for H1 2025 | Metric | For the six months ended Jun 30, 2025 (HK$ Thousand) | For the six months ended Jun 30, 2024 (HK$ Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 369,837 | 406,237 | -9.0% | | Gross Profit | 113,712 | 167,796 | -32.2% | | Profit Before Income Tax Expense | 55,126 | 107,058 | -48.5% | | Profit Attributable to Owners of the Company | 45,150 | 94,552 | -52.2% | | Basic & Diluted EPS (HK Cents) | 4.91 | 9.15 | -46.3% | Consolidated Statement of Financial Position As of June 30, 2025, Group total assets increased to HK$858 million, total liabilities increased to HK$166 million, and net assets (total equity) amounted to HK$692 million. Net current assets remained stable, but bank borrowings increased Financial Position Summary | Metric | As of Jun 30, 2025 (HK$ Thousand) | As of Dec 31, 2024 (HK$ Thousand) | Change | | :--- | :--- | :--- | :--- | | Non-current Assets | 250,965 | 220,048 | +14.1% | | Current Assets | 607,315 | 576,739 | +5.3% | | Total Assets | 858,280 | 796,787 | +7.7% | | Current Liabilities | 157,990 | 139,882 | +12.9% | | Non-current Liabilities | 8,163 | 9,933 | -17.8% | | Total Liabilities | 166,153 | 149,815 | +10.9% | | Net Assets | 692,127 | 646,972 | +7.0% | Consolidated Statement of Cash Flows For the six months ended June 30, 2025, Group cash flow from operating activities turned positive, achieving a net inflow of HK$31.97 million, primarily due to improved operational efficiency. Investing activities continued to show a net outflow, mainly for the purchase of property, plant, and equipment. Financing activities recorded a net inflow due to new bank borrowings. Cash and cash equivalents at period-end increased to HK$338 million Cash Flow Summary | Item | For the six months ended Jun 30, 2025 (HK$ Thousand) | For the six months ended Jun 30, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Net Cash From/(Used In) Operating Activities | 31,969 | (21,265) | | Net Cash Used In Investing Activities | (33,198) | (44,053) | | Net Cash From/(Used In) Financing Activities | 14,947 | (36,838) | | Net Increase/(Decrease) in Cash & Cash Equivalents | 13,718 | (102,156) | | Cash & Cash Equivalents at Period-End | 338,232 | 234,616 | Notes to the Consolidated Financial Statements 3. Revenue and Segment Information The Group's core business is the manufacturing and sale of candle products, constituting a single operating segment. By product type, scented candles were the primary revenue source, though their sales slightly decreased year-on-year. By geographical location, the US market contributed the vast majority of revenue, but saw a 13.0% year-on-year decrease; conversely, UK market revenue significantly increased Revenue by Product Type | Product Type | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Household Candles | 48,356 | 54,734 | -11.7% | | Scented Candles | 268,851 | 274,948 | -2.2% | | Decorative Candles | 11,946 | 8,585 | +39.1% | | Others (incl. Aroma Diffusers) | 40,684 | 67,970 | -40.1% | | Total | 369,837 | 406,237 | -9.0% | Revenue by Customer Location | Region | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | United States | 341,950 | 393,050 | -13.0% | | United Kingdom | 27,356 | 9,352 | +192.5% | | Others | 531 | 3,835 | -86.2% | | Total | 369,837 | 406,237 | -9.0% | 11. Earnings Per Share Due to a decrease in profit for the period, basic earnings per share for the six months ended June 30, 2025, was 4.91 HK cents, a significant reduction from 9.15 HK cents in the prior year period. No potential ordinary shares were outstanding during the reporting period, thus diluted earnings per share is not presented - Basic earnings per share decreased from 9.15 HK cents in the prior year period to 4.91 HK cents[3] - The weighted average number of ordinary shares used to calculate basic earnings per share was 918,500,000 shares, less than 1,033,184,066 shares in the prior year period, potentially related to previous share repurchases[33][6] 10. Dividends The Board did not recommend an interim dividend for the six months ended June 30, 2025, consistent with the prior year period - No dividends were paid, declared, or recommended for the six months ended June 30, 2025, and 2024[30] Management Discussion and Analysis Business Review The Group's core business is the manufacturing and sale of candle products, with the US and UK as primary markets. Despite enhanced production capacity from the new automated factory in Vietnam, recent US imposition of a 20% tariff on Vietnamese imports significantly increased export costs, pressuring profit margins. To address these challenges, the Group plans to enhance production efficiency and explore market diversification - The Group primarily engages in candle product manufacturing and sales, with the United States and United Kingdom as key markets, and Vietnam as the main production hub (accounting for over 90% of total capacity)[49][51] - The main challenge is the US government's imposition of a 20% tariff on Vietnamese imports, which will significantly increase export costs and compress future profit margins[51] - Response strategies include enhancing production efficiency to reduce costs and actively exploring other markets like Europe for diversification[51] Financial Review In the first half of 2025, the Group's financial performance faced pressure. Revenue decreased by 9.0% due to lower sales volume of key products. Gross profit margin decreased from 41.3% to 30.7% due to increased unit prices of raw materials, leading to a significant 32.2% reduction in gross profit. Despite a decrease in administrative expenses, the combined impact of reduced gross profit and other income resulted in a sharp 52.2% year-on-year decline in net profit Year-on-Year Financial Performance Changes and Reasons | Item | H1 2025 | H1 2024 | Y-o-Y Change | Primary Reason | | :--- | :--- | :--- | :--- | :--- | | Revenue | 369.8 HK$ Million | 406.2 HK$ Million | -9.0% | Decreased sales volume of household, scented, and other candle products | | Gross Profit | 113.7 HK$ Million | 167.8 HK$ Million | -32.2% | Increased unit prices of raw materials led to lower gross profit margin | | Gross Profit Margin | 30.7% | 41.3% | -10.6 percentage points | Increased unit prices of raw materials | | Administrative Expenses | 48.6 HK$ Million | 72.7 HK$ Million | -33.1% | Reduced salaries and allowances, legal and professional fees | | Net Profit | 45.2 HK$ Million | 94.6 HK$ Million | -52.2% | Combined impact of reduced gross profit and other income | Liquidity and Financial Resources As of June 30, 2025, the Group's financial position remained robust, with a current ratio of approximately 3.8 times. However, due to increased bank borrowings, the gearing ratio (total debt/total equity) rose from 2.5% to 5.7%. The Group has unutilized banking facilities of approximately HK$86.7 million, providing sufficient financial resources to support its operations Key Financial Ratios | Metric | As of Jun 30, 2025 | As of Dec 31, 2024 | | :--- | :--- | :--- | | Current Ratio | Approx. 3.8 times | Approx. 4.1 times | | Gearing Ratio | Approx. 5.7% | Approx. 2.5% | | Unutilized Banking Facilities | Approx. HK$86.7 million | Approx. HK$115.9 million | - The increase in gearing ratio is primarily due to increased bank borrowings[63] Use of Proceeds As of June 30, 2025, all net proceeds from the listing, approximately HK$44.5 million, have been fully utilized in line with the business objectives outlined in the prospectus, primarily for upgrading and acquiring production equipment, purchasing new machinery, installing an ERP system, and repaying bank loans - Net proceeds from the listing, approximately HK$44.5 million, were fully utilized by June 30, 2025, with no remaining balance[77][84] Allocation and Utilization of Proceeds | Purpose | Allocated Amount (HK$ Million) | Status | | :--- | :--- | :--- | | Upgrading existing production equipment | 6.2 | Utilized | | Acquiring new production equipment | 18.1 | Utilized | | Purchasing new machinery | 9.2 | Utilized | | Installing Enterprise Resource Planning system | 2.0 | Utilized | | Repaying part of bank loans | 6.9 | Utilized | | General working capital | 2.1 | Utilized | | Total | 44.5 | Fully Utilized | Corporate Governance and Other Information During the reporting period, the Company complied with the required standard of dealings and corporate governance code set out in the GEM Listing Rules. The Audit Committee has reviewed the unaudited consolidated results for the period and deemed their preparation compliant with applicable accounting standards and disclosure requirements - The Company has complied with the required standard of dealings for directors' securities transactions and the Corporate Governance Code under the GEM Listing Rules[85][87] - The Audit Committee, comprising three independent non-executive directors, has reviewed this interim results announcement[88][89] - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the reporting period up to the date of this announcement[86]