明辉国际(03828) - 2025 - 中期业绩

Company Announcement Summary This section provides a high-level overview of the company's financial performance for the six months ended June 30, 2025 Summary for the Six Months Ended June 30, 2025 During the reporting period, the company's revenue slightly increased by 0.5%, while gross profit and profit attributable to owners of the company both decreased by 4.5%, with gross profit margin falling by 1.2 percentage points. Basic and diluted earnings per share both declined, and the interim dividend remained unchanged at HK 3.0 cents per share Key Financial Highlights for H1 2025 | Metric | H1 2025 (HK$ Million) | H1 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,028.6 | 1,023.4 | 0.5% | | Gross Profit | 233.8 | 244.9 | (4.5)% | | Profit Attributable to Owners of the Company | 50.9 | 53.3 | (4.5)% | | Basic EPS (HK Cents) | 7.0 | 7.4 | (5.4)% | | Diluted EPS (HK Cents) | 7.0 | 7.4 | (5.4)% | | Dividend Per Share (HK Cents) | 3.0 | 3.0 | – | Interim Condensed Consolidated Financial Statements This section presents the company's interim condensed consolidated financial statements, including the statement of comprehensive income and statement of financial position Interim Condensed Consolidated Statement of Comprehensive Income This statement details revenue, cost of sales, gross profit, various expenses, operating profit, finance income and costs, share of profit/loss of associates and joint ventures, income tax expense, and total comprehensive income for the six months ended June 30, 2025, with comparative figures Key Data from Interim Condensed Consolidated Statement of Comprehensive Income | Metric | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Revenue | 1,028,584 | 1,023,353 | | Cost of Sales | (794,822) | (778,485) | | Gross Profit | 233,762 | 244,868 | | Operating Profit | 59,736 | 64,041 | | Profit for the Period | 50,214 | 51,667 | | Profit Attributable to Owners of the Company | 50,909 | 53,273 | | Basic EPS (HK Cents) | 7.0 | 7.4 | Interim Condensed Consolidated Statement of Financial Position This statement provides detailed classified data on assets, liabilities, and equity, including non-current assets, current assets, non-current liabilities, current liabilities, and shareholders' equity, as of June 30, 2025, and December 31, 2024 Key Data from Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Total Non-current Assets | 556,706 | 554,067 | | Total Current Assets | 1,340,416 | 1,441,268 | | Total Assets | 1,897,122 | 1,995,335 | | Total Equity | 1,274,641 | 1,263,337 | | Total Non-current Liabilities | 22,719 | 17,868 | | Total Current Liabilities | 599,762 | 714,130 | | Total Liabilities | 622,481 | 731,998 | Notes to the Interim Condensed Consolidated Financial Information This section provides explanatory notes to the interim condensed consolidated financial information, detailing the basis of preparation, accounting policies, segment information, and other financial disclosures Basis of Preparation The interim condensed consolidated financial information is prepared in accordance with HKAS 34 and presented in HK$ Thousand, without full annual financial statement notes, and is unaudited - The financial information is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting", is unaudited, and presented in HK$ Thousand[8][9][10] Accounting Policies The accounting policies applied in the reporting period are consistent with the 2024 annual consolidated financial statements, with exceptions for income tax estimation and the adoption of new revised standards - Accounting policies are consistent with the prior year, except for income tax estimation and the adoption of new standards[11] Amendments to Standards Adopted by the Group The group adopted amendments to HKAS 21 and HKFRS 1 "Lack of Exchangeability" from January 1, 2025, with no significant expected impact - The Group adopted amendments to Hong Kong Accounting Standard 21 and Hong Kong Financial Reporting Standard 1 (Amendments) "Lack of Exchangeability" from January 1, 2025, with no significant expected impact[12] Amendments to Standards Issued But Not Yet Effective Several new revised standards, effective in 2026 or 2027, are being assessed by the group, with no significant impact initially anticipated - Several new revised standards will be effective in 2026 or 2027, covering financial instrument classification and measurement, and financial statement presentation and disclosure, with the Group assessing their impact and initially expecting no significant effect[13][14] Segment Information The board categorizes the group's business into three segments: travel amenities, operating supplies and equipment, and healthcare and hygiene products, with performance assessed by customer location Business Segments This section details the financial performance of the group's three primary business segments: travel amenities, operating supplies and equipment, and healthcare and hygiene products - The Group primarily engages in the manufacturing and sale of travel amenities, sale of operating supplies and equipment, and manufacturing and sale of healthcare and hygiene products[15] H1 2025 Revenue and Segment Profit Before Income Tax by Business Segment | Business Segment | Revenue (HK$ Thousand) | Segment Profit Before Income Tax (HK$ Thousand) | | :--- | :--- | :--- | | Travel Amenities Business | 877,566 | 48,567 | | Operating Supplies and Equipment Business | 95,723 | 5,552 | | Healthcare and Hygiene Products Business | 55,295 | 1,918 | | Others | 64 | (64) | | Total | 1,028,648 | 55,973 | Geographical Segments This section provides a breakdown of the group's revenue from external customers and total assets by geographical region H1 2025 Geographical Revenue from External Customers | Region | Revenue (HK$ Thousand) | | :--- | :--- | | Hong Kong | 138,415 | | PRC | 208,012 | | North America | 158,169 | | Europe | 147,603 | | Asia Pacific | 172,536 | | Australia | 51,255 | | Others | 1,576 | | Subtotal: Travel Amenities Business | 877,566 | | PRC | 65,180 | | Others | 30,543 | | Subtotal: Operating Supplies and Equipment Business | 95,723 | | North America | 52,395 | | Hong Kong | 982 | | Others | 1,918 | | Subtotal: Healthcare and Hygiene Products Business | 55,295 | | Total | 1,028,584 | Total Assets by Geographical Region as of June 30, 2025 and December 31, 2024 | Region | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | PRC | 654,117 | 678,366 | | Hong Kong | 800,803 | 823,900 | | Australia | 1,909 | 1,808 | | Cambodia | 417,727 | 433,413 | | Other Regions | 3,647 | 215 | | Total | 1,897,122 | 1,995,335 | Expenses by Nature This section details various expenses and income recognized in cost of sales, distribution costs, administrative expenses, and net reversal of impairment losses on financial assets, including inventory costs, depreciation, amortization, employee benefits, transportation, and net exchange gains Expenses/(Income) by Nature | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Cost of inventories sold | 556,311 | 527,755 | | Depreciation of property, plant and equipment | 27,587 | 26,368 | | Employee benefit expenses | 263,010 | 267,852 | | Transportation expenses | 45,081 | 39,275 | | Net exchange gain | (15,201) | (4,745) | | Advertising costs | 5,326 | 6,401 | Other Income, Net For the six months ended June 30, 2025, net other income was HK$3,629 thousand, primarily from rental income, scrap sales, and government grants, with government grants decreasing from the prior period Other Income, Net | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Rental income | 1,119 | 1,124 | | Scrap sales income | 215 | 319 | | Government grants | 1,533 | 2,507 | | Others | 762 | 1,244 | | Total | 3,629 | 5,194 | Finance Income and Costs For the six months ended June 30, 2025, net finance income was HK$1,027 thousand, a slight decrease from HK$1,077 thousand in the prior period, mainly due to reduced interest expenses on borrowings and lease liabilities, alongside a decrease in finance income Finance Income and Costs | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Interest expense on borrowings | (698) | (1,506) | | Interest expense on lease liabilities | (98) | (175) | | Finance costs | (796) | (1,681) | | Finance income | 1,823 | 2,758 | | Net finance income | 1,027 | 1,077 | Income Tax Expense For the six months ended June 30, 2025, income tax expense was HK$11,097 thousand, a decrease from the prior period, calculated based on applicable tax rates in the jurisdictions where the group operates Income Tax Expense | Item | H1 2025 (HK$ Thousand) | H1 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax | 6,276 | 9,583 | | PRC Enterprise Income Tax | 3,338 | 2,983 | | Other overseas profits tax | 1,672 | 1,156 | | Deferred income tax | (189) | (132) | | Total | 11,097 | 13,590 | - Hong Kong Profits Tax rate is 16.5%, PRC Enterprise Income Tax rate is 25%, Macau Complementary Income Tax rate is 12%, and Cambodia Enterprise Income Tax rate is 20%[23] Trade and Bills Receivables As of June 30, 2025, net trade and bills receivables amounted to HK$573,501 thousand, a decrease from December 31, 2024, with credit terms ranging from 15 to 180 days Aging Analysis of Trade and Bills Receivables | Aging | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 1 to 30 days | 249,084 | 321,831 | | 31 to 60 days | 127,149 | 137,556 | | 61 to 90 days | 77,094 | 108,220 | | 91 to 180 days | 115,078 | 160,070 | | Over 180 days | 94,007 | 91,330 | | Total | 662,412 | 819,007 | - The Group grants credit terms ranging from 15 to 180 days[25] Amount Due from an Associate As of June 30, 2025, the amount due from an associate was HK$2,605 thousand, a decrease from December 31, 2024, representing trade receivables with a 90-day credit term Aging Analysis of Amount Due from an Associate | Aging | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 1 to 30 days | 1,000 | 3,304 | | 31 to 60 days | 1,452 | – | | 61 to 90 days | 145 | – | | Over 90 days | 8 | 69 | | Total | 2,605 | 3,373 | - The credit term granted to the associate is 90 days[27] Pledged Bank Deposits As of June 30, 2025, pledged bank deposits amounted to HK$11,766 thousand, serving as collateral for a letter of credit from a Hong Kong bank Pledged Bank Deposits | Date | Amount (HK$ Thousand) | | :--- | :--- | | June 30, 2025 | 11,766 | | December 31, 2024 | 11,636 | - Bank deposits of US$1,500,000 (approximately HK$11,766 thousand) are pledged as collateral for a letter of credit from a Hong Kong bank[29] Cash and Cash Equivalents As of June 30, 2025, total cash and cash equivalents were HK$421,161 thousand, an increase from December 31, 2024, with certain bank balances in China and India subject to foreign exchange controls Cash and Cash Equivalents | Item | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Bank balances and cash | 348,177 | 251,658 | | Short-term bank deposits | 72,984 | 76,963 | | Total | 421,161 | 328,621 | - Bank balances and cash held by the Group in the PRC and India, approximately HK$147,265 thousand and HK$29 thousand respectively, are subject to foreign exchange control restrictions on remittance[30] Trade Payables As of June 30, 2025, total trade payables were HK$207,752 thousand, a significant decrease from December 31, 2024, with an aging analysis provided by invoice date Aging Analysis of Trade Payables | Aging | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | 1 to 30 days | 184,479 | 236,267 | | 31 to 60 days | 14,564 | 17,542 | | 61 to 90 days | 5,245 | 6,497 | | Over 90 days | 3,464 | 3,408 | | Total | 207,752 | 263,714 | Borrowings As of June 30, 2025, the group's total borrowings were HK$17,751 thousand, a decrease from December 31, 2024, comprising secured bank borrowings and other borrowings, with unutilized bank facilities of approximately HK$399,575 thousand Borrowings Structure | Type | June 30, 2025 (HK$ Thousand) | December 31, 2024 (HK$ Thousand) | | :--- | :--- | :--- | | Non-current borrowings | 1,899 | 1,844 | | Current borrowings | 15,852 | 24,253 | | Total | 17,751 | 26,097 | - Bank borrowings are secured by certain of the Group's property, plant and equipment and right-of-use assets, while other borrowings are secured by personal guarantees from non-controlling interests[32] - As of June 30, 2025, the Group had unutilized bank facilities of approximately HK$399,575 thousand[33] Share Capital As of June 30, 2025, the company's authorized share capital was 10,000,000,000 shares at HK$0.01 each, totaling HK$100,000 thousand, with issued and fully paid share capital of 734,262,697 shares, totaling HK$7,343 thousand, unchanged from the prior year Share Capital Details | Item | Number of Shares | Amount (HK$ Thousand) | | :--- | :--- | :--- | | Authorised share capital (HK$0.01 par value per share) | 10,000,000,000 | 100,000 | | Issued and fully paid share capital | 734,262,697 | 7,343 | Earnings Per Share For the six months ended June 30, 2025, both basic and diluted earnings per share were HK 7.0 cents, a decrease from HK 7.4 cents in the prior period, with no dilutive potential ordinary shares Basic Earnings Per Share This section details the calculation of basic earnings per share for the six months ended June 30, 2025, based on profit attributable to owners of the company and the weighted average number of ordinary shares Basic Earnings Per Share Calculation | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Owners of the Company for the Period (HK$ Thousand) | 50,909 | 53,273 | | Weighted average number of ordinary shares in issue (Thousand shares) | 723,839 | 723,839 | | Basic EPS Attributable to Owners of the Company (HK Cents) | 7.0 | 7.4 | Diluted Earnings Per Share For the six months ended June 30, 2025, diluted earnings per share were identical to basic earnings per share due to the absence of dilutive potential ordinary shares - For the six months ended June 30, 2025, diluted earnings per share attributable to owners of the Company were the same as basic earnings per share due to the absence of issued potential dilutive ordinary shares[38] Dividends The Board resolved to declare an interim dividend of HK 3.0 cents per share for the six months ended June 30, 2025, totaling approximately HK$22,028 thousand, consistent with the prior period Dividends Declared and Paid | Dividend Type | Declaration Date | Dividend Per Share (HK Cents) | Total Amount (HK$ Thousand) | | :--- | :--- | :--- | :--- | | 2024 Final Dividend | Approved on May 22, 2025 | 7.0 | 51,398 (Paid) | | 2025 Interim Dividend | Board Resolution | 3.0 | 22,028 | Capital Commitments As of June 30, 2025, the group's contracted but unprovided capital commitments amounted to approximately HK$14,670 thousand, a decrease from December 31, 2024 Capital Commitments | Date | Amount (HK$ Thousand) | | :--- | :--- | | June 30, 2025 | 14,670 | | December 31, 2024 | 21,055 | Management Discussion and Analysis This section provides a comprehensive review and analysis of the group's financial performance, business operations, and strategic outlook for the reporting period Financial Review This section reviews the group's key financial performance for the six months ended June 30, 2025, including revenue, gross profit, profit attributable to owners of the company, earnings per share, dividends, liquidity, borrowing structure, asset pledges, foreign exchange risk, and capital commitments Key Financial Highlights This section presents a summary of the group's key financial performance metrics for the six months ended June 30, 2025, and the comparative period Key Financial Highlights | Metric | H1 2025 (HK$ Million) | H1 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,028.6 | 1,023.4 | 0.5% | | Gross Profit | 233.8 | 244.9 | (4.5)% | | Profit Attributable to Owners of the Company | 50.9 | 53.3 | (4.5)% | | Basic EPS (HK Cents) | 7.0 | 7.4 | (5.4)% | | Diluted EPS (HK Cents) | 7.0 | 7.4 | (5.4)% | | Dividend Per Share (HK Cents) | 3.0 | 3.0 | – | Revenue This section analyzes the group's revenue performance, broken down by business segment, for the six months ended June 30, 2025 Revenue by Business Segment | Business Segment | H1 2025 (HK$ Million) | H1 2024 (HK$ Million) | Share (2025) | Share (2024) | | :--- | :--- | :--- | :--- | :--- | | Travel Amenities Business | 877.6 | 857.8 | 85.3% | 83.8% | | Operating Supplies and Equipment Business | 95.7 | 82.3 | 9.3% | 8.0% | | Healthcare and Hygiene Products Business | 55.3 | 83.3 | 5.4% | 8.2% | | Total Revenue | 1,028.6 | 1,023.4 | 100% | 100% | - The Group's total revenue slightly increased by 0.5%, with growth in the travel amenities and operating supplies and equipment businesses, while the healthcare and hygiene products business experienced a decline in revenue[42] Gross Profit and Gross Profit Margin This section examines the group's gross profit and gross profit margin for the six months ended June 30, 2025, and the factors influencing their changes Gross Profit and Gross Profit Margin | Metric | H1 2025 (HK$ Million) | H1 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 233.8 | 244.9 | (4.5)% | | Gross Profit Margin | 22.7% | 23.9% | (1.2) percentage points | - The decrease in gross profit was primarily due to an increase in cost of sales[43] Profit Attributable to Owners of the Company This section presents the profit attributable to owners of the company for the six months ended June 30, 2025, and its change compared to the prior period Profit Attributable to Owners of the Company | Metric | H1 2025 (HK$ Million) | H1 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Profit Attributable to Owners of the Company | 50.9 | 53.3 | (4.5)% | Earnings Per Share This section provides the basic and diluted earnings per share for the six months ended June 30, 2025, and their changes from the prior period Earnings Per Share | Metric | H1 2025 (HK Cents) | H1 2024 (HK Cents) | Change (%) | | :--- | :--- | :--- | :--- | | Basic EPS | 7.0 | 7.4 | (5.4)% | | Diluted EPS | 7.0 | 7.4 | (5.4)% | Interim Dividend This section details the interim dividend declared for the six months ended June 30, 2025, and its comparison to the prior period Interim Dividend | Metric | H1 2025 (HK Cents) | H1 2024 (HK Cents) | Change | | :--- | :--- | :--- | :--- | | Interim Dividend Per Share | 3.0 | 3.0 | – | Liquidity and Financial Resources This section discusses the group's liquidity management policy, available bank financing facilities, and key liquidity metrics - The Group adheres to a prudent capital management policy and maintains available standby bank financing facilities[47] Cash and Cash Equivalents and Net Assets | Metric | June 30, 2025 (HK$ Million) | December 31, 2024 (HK$ Million) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 421.1 | 328.6 | | Net Assets | 1,274.6 | 1,263.3 | Borrowings This section provides an overview of the group's borrowings, including their maturity profile, currency denomination, and interest rate characteristics Borrowings Maturity Profile | Repayment Period | June 30, 2025 (HK$ Million) | December 31, 2024 (HK$ Million) | | :--- | :--- | :--- | | Within 1 year | 11.3 | 14.6 | | Between 1 and 2 years | 4.8 | 9.7 | | Between 2 and 5 years | 0.8 | 0.9 | | Over 5 years | 0.9 | 0.9 | | Total | 17.8 | 26.1 | Borrowings by Currency | Currency | June 30, 2025 (HK$ Million) | December 31, 2024 (HK$ Million) | | :--- | :--- | :--- | | HKD | 2.3 | 4.0 | | USD | 13.4 | 20.2 | | JPY | 2.1 | 1.9 | | Total | 17.8 | 26.1 | - The Group's borrowings are primarily denominated in USD, with most at floating interest rates[50][51][52] Pledge of Group Assets This section outlines the group's assets pledged as collateral for bank borrowings and other borrowings Carrying Value of Pledged Assets | Asset Type | June 30, 2025 (HK$ Million) | December 31, 2024 (HK$ Million) | | :--- | :--- | :--- | | Property, plant and equipment | 13.5 | 14.2 | | Right-of-use assets | 25.0 | 25.5 | | Bank deposits | 11.8 | 11.6 | | Total | 50.3 | 51.3 | - Bank borrowings are secured by certain of the Group's property, plant and equipment, right-of-use assets, and bank deposits, while some other borrowings are secured by personal guarantees from non-controlling interests[53] Gearing Ratio This section states the group's gearing ratio as of June 30, 2025, and December 31, 2024 - As of June 30, 2025, and December 31, 2024, the Group's gearing ratio was not applicable[55] Foreign Exchange Risk This section describes the group's primary foreign exchange risk exposure, mainly to RMB, and its management approach - The Group primarily faces foreign exchange risk mainly denominated in RMB, currently without a hedging policy, managing it by increasing revenue denominated in the same currency[56] Capital Commitments and Contingent Liabilities This section addresses the group's capital commitments and contingent liabilities as of June 30, 2025 - As of June 30, 2025, the Group had no significant contingent liabilities[57] Business Review This section reviews the performance of the group's three core businesses—travel amenities, operating supplies and equipment, and healthcare and hygiene products—for H1 2025, analyzing revenue, gross profit, and gross profit margin changes, and discussing macroeconomic impacts Macroeconomic Environment This section discusses the complex and volatile global economic environment in H1 2025, characterized by easing inflation, recovering international air travel, but also policy instability, rising tariffs, and geopolitical conflicts - In H1 2025, the global economic environment was complex and volatile, with easing inflation and recovering international air travel demand and capacity, yet policy instability, soaring tariffs, and geopolitical conflicts continued to constrain global economic growth, challenging the business operating environment[58] Travel Amenities Business This section analyzes the financial performance of the travel amenities business, including revenue, gross profit, and gross profit margin, and discusses the challenges faced despite growth in international passenger numbers Travel Amenities Business Financial Performance | Metric | H1 2025 (HK$ Million) | H1 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 877.6 | 857.8 | 2.3% | | Gross Profit | 194.9 | 201.8 | (3.4)% | | Gross Profit Margin | 22.2% | 23.5% | (1.3) percentage points | - Despite continuous growth in international passenger numbers, macroeconomic instability, supply chain pressures, and intense industry competition pose challenges to the travel amenities business[59] Travel Amenities Business Regional Revenue | Region | H1 2025 (HK$ Million) | H1 2024 (HK$ Million) | Share (2025) | Share (2024) | | :--- | :--- | :--- | :--- | :--- | | PRC | 208.0 | 235.1 | 23.7% | 27.4% | | Hong Kong | 138.4 | 109.8 | 15.8% | 12.8% | | North America | 158.2 | 176.1 | 18.0% | 20.5% | | Europe | 147.6 | 124.6 | 16.8% | 14.5% | | Other Asia Pacific | 172.5 | 176.4 | 19.7% | 20.6% | | Australia | 51.3 | 34.3 | 5.8% | 4.0% | Operating Supplies and Equipment Business This section reviews the financial performance of the operating supplies and equipment business, highlighting revenue and gross profit growth driven by the Chinese hotel construction pipeline, and outlining future strategies Operating Supplies and Equipment Business Financial Performance | Metric | H1 2025 (HK$ Million) | H1 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 95.7 | 82.3 | 16.3% | | Gross Profit | 22.3 | 19.4 | 14.9% | | Gross Profit Margin | 23.3% | 23.5% | (0.2) percentage points | - Benefiting from the growth in China's hotel construction pipeline, both revenue and gross profit for this business segment achieved growth[61] - The Group will continue to focus on market demand, optimize product structure, enhance competitiveness through innovative R&D and strict quality control, and actively seize opportunities in the global tourism industry, especially Southeast Asian hotel projects, to expand its customer network[62] Healthcare and Hygiene Products Business This section analyzes the financial performance of the healthcare and hygiene products business, noting a decline in revenue and gross profit due to reduced demand for pandemic-related products, but an increase in gross profit margin Healthcare and Hygiene Products Business Financial Performance | Metric | H1 2025 (HK$ Million) | H1 2024 (HK$ Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 55.3 | 83.3 | (33.6)% | | Gross Profit | 16.6 | 23.7 | (30.0)% | | Gross Profit Margin | 30.0% | 28.4% | 1.6 percentage points | - Reduced market demand for pandemic prevention products and shifts in customer purchasing behavior led to a decline in revenue and gross profit for this business, yet the gross profit margin increased against the trend[63][64] - The Group will adjust strategies based on market demand, diversify existing products, identify new customer needs, actively promote production line transformation and upgrading, and seize growth opportunities arising from increased global health awareness[63] Prospects and Strategies This section outlines the group's vision, outlook on global tourism, strategic deployment in Cambodia, commitment to sustainable development, importance of partnerships, and operational strategies to address market changes for sustainable growth and profitability Global Tourism Industry: Opportunities and Challenges This section discusses the global tourism industry's challenges, including weak economic growth and geopolitical tensions, alongside projected international traveler growth, and the group's strategy to monitor market dynamics and adapt operations - The Group aims to become a leading international brand focused on travel amenities and personal care products, creating ideal value for stakeholders, with a strong commitment to environmental protection and sustainable development[65] - The global tourism industry faces challenges such as weak economic growth, high travel costs, rising tariffs, and geopolitical tensions, yet the UNWTO still forecasts a 3% to 5% growth in international travelers for 2025[66] - The Group will closely monitor market dynamics, flexibly adjust operational strategies and service systems, optimize resource allocation to strengthen core competitiveness, and strive for sustainable business development in a complex and volatile market environment[66] Cambodia Plant Layout to Seize Southeast Asian Market Opportunities This section explains the group's strategic establishment of a plant in Cambodia to address international trade barriers and supply chain restructuring, enhancing local service capabilities and capturing Southeast Asian market opportunities - To address international trade tariff barriers and supply chain restructuring challenges, the Group established a plant in Cambodia to enhance local service capabilities and seize Southeast Asian market opportunities[67] - The Group will continue to assess the impact of US tariff policies on its business and operations, closely monitor global supply chain dynamics, strengthen its business footprint in Cambodia and surrounding regions, and adjust strategies as necessary to mitigate potential risks[67] Continued Commitment to Sustainable Development Goals This section highlights the group's ongoing commitment to ESG principles, integrating them into its development strategy, exploring business innovation, and promoting eco-friendly manufacturing processes to meet growing demand for sustainable operations and green products - The Group continues to prioritize Environmental, Social, and Governance (ESG) concepts, integrating them into its development strategy, actively exploring business innovation, and implementing eco-friendly manufacturing processes to meet the growing market demand for sustainable operations and green products[68] - The Group will continue to deepen its ESG implementation, actively fulfill its social and corporate responsibilities, and contribute to achieving global sustainable development goals[68] Building Lasting Partnerships with Quality Products and Services This section emphasizes the group's philosophy of "win-win cooperation," leveraging superior products and services as core competitive advantages, continuously innovating to meet customer needs, and strengthening quality control to enhance satisfaction - The Group adheres to the philosophy of "win-win cooperation," leveraging excellent products and quality services as core competitive advantages, continuously innovating to meet the needs of existing and potential customers[69] - The Group will continue to strengthen quality control to enhance customer satisfaction and, while maintaining existing strategic partnerships, actively explore new potential customer segments to drive win-win growth[69] Continued Prudent Operations, Cost Efficiency, and Productivity Enhancement to Address Market Changes This section outlines the group's strategy to operate with prudent management principles, strategically optimize operations, leverage its Cambodian production base, and strengthen R&D to enhance core competitiveness amidst global political and economic uncertainties - Facing profound changes in the global political and economic landscape and increasing uncertainties, the Group will operate with prudent management principles and strategically optimize its operations[70] - The Group will fully leverage its Cambodian production base as a strategic gateway to the Southeast Asian market to enhance cost efficiency and service capabilities, and strengthen R&D to reinforce core competitive advantages and seize new industry opportunities[70] Employees and Remuneration Policy As of June 30, 2025, the group employed approximately 7,500 people, with employee benefit expenses of about HK$263.0 million, and remuneration is determined by market terms and individual qualifications, complemented by various benefits and performance assessment plans - As of June 30, 2025, the Group had approximately 7,500 employees[71] Employee Benefit Expenses | Metric | H1 2025 (HK$ Million) | | :--- | :--- | | Employee benefit expenses (including directors' emoluments) | 263.0 | - The Group's remuneration is determined by market terms and individual qualifications, offering discretionary bonuses, social/medical insurance, share award schemes, continuous education and training courses, and key performance indicator assessment plans[71] Other Information This section covers additional corporate information, including transactions in listed securities, corporate governance practices, audit committee review, directors' securities dealings, interim dividend declaration, and share register closure Purchase, Sale or Redemption of the Company's Listed Securities For the six months ended June 30, 2025, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities - During the reporting period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[72] Corporate Governance Code The group has complied with all code provisions of the Corporate Governance Code, except for a deviation from code provision C.2.1 regarding the appointment of a chief executive officer - The Group has complied with all provisions of the Corporate Governance Code, except for a deviation from code provision C.2.1, where the CEO's duties are jointly performed by all executive directors, including the Chairman[73] Audit Committee The company's Audit Committee, comprising three independent non-executive directors, has reviewed the group's unaudited interim condensed consolidated results for the six months ended June 30, 2025 - The Audit Committee, composed of three independent non-executive directors, has reviewed the Group's unaudited interim condensed consolidated results for the six months ended June 30, 2025[74] Standard Code for Securities Transactions by Directors The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed compliance during the reporting period - Following enquiry, all directors of the Company confirmed compliance with the Standard Code for Securities Transactions by Directors of Listed Issuers during the reporting period[75] Interim Dividend The Board declared an interim dividend of HK 3.0 cents per share for the six months ended June 30, 2025, payable on September 30, 2025, to shareholders on record as of September 19, 2025 - The Board announced an interim dividend of HK 3.0 cents per share for the six months ended June 30, 2025[76] - The interim dividend will be paid on September 30, 2025, to shareholders whose names appear on the register of members on September 19, 2025[76] Closure of Register of Members and Record Date To determine eligibility for the interim dividend, the company's share register will be closed from September 18 to September 19, 2025, with the record date set for September 19, 2025 - The register of members will be closed from September 18 to September 19, 2025, with the record date set for September 19, 2025, to determine eligibility for the interim dividend[77]