Financial Performance - The group's revenue for the six months ended June 30, 2025, was HKD 510.1 million, an increase of 17.3% compared to HKD 435.0 million for the same period in 2024[6]. - Gross profit for the first half of 2025 was HKD 129.2 million, up 19.8% from HKD 107.8 million in the first half of 2024[6]. - The gross profit margin increased by 0.5 percentage points to 25.3% in the first half of 2025 from 24.8% in the first half of 2024[6]. - The group reported a net loss of HKD 7.7 million for the first half of 2025, compared to a net profit of HKD 21.1 million in the first half of 2024[6]. - EBITDA for the first half of 2025 was HKD 15.9 million, down from HKD 42.8 million in the first half of 2024[6]. - Adjusted net profit for the first half of 2025 was HKD 10.6 million, compared to HKD 31.1 million in the first half of 2024[6]. - The group reported a net loss of HKD 7.67 million for the period, compared to a profit of HKD 21.12 million in the same period of 2024[26]. - Adjusted profit before tax for the group was a loss of HKD 7.38 million, compared to a profit of HKD 24.22 million in the same period last year[26]. - The company reported a loss attributable to equity holders of HKD 8.0 million, compared to a profit of HKD 21.0 million in the same period last year[66]. - EBITDA for the first half of 2025 was a loss of HKD 7.7 million, compared to a profit of HKD 21.1 million in the first half of 2024[68]. Revenue Breakdown - Total revenue for the six months ended June 30, 2025, reached HKD 540.79 million, a 21.5% increase from HKD 444.92 million in the same period of 2024[26]. - Distribution segment revenue was HKD 354.50 million, up from HKD 343.80 million year-over-year, while e-commerce segment revenue was HKD 104.84 million, with no revenue reported for the same period in 2024[26]. - Retail store segment revenue decreased to HKD 81.45 million from HKD 101.12 million in the previous year, reflecting a decline of 19.5%[26]. - Sales in Hong Kong decreased to HKD 336,636,000 from HKD 358,406,000, a decline of 6.3%[29]. - Revenue from Hong Kong decreased by 6.1% to HKD 336.6 million, while revenue from Macau fell by 5.1% to HKD 42.9 million due to weakened consumer demand[63]. - Revenue from Southeast Asia significantly increased by 37.6% to HKD 43.2 million, driven by ongoing development and expansion of sales channels[63]. Assets and Liabilities - Total assets as of June 30, 2025, were HKD 1,236.7 million, compared to HKD 1,005.6 million as of December 31, 2024[9]. - Total liabilities increased to HKD 711.7 million as of June 30, 2025, from HKD 516.6 million as of December 31, 2024[10]. - Total equity as of June 30, 2025, was HKD 525.0 million, up from HKD 489.0 million as of December 31, 2024[10]. - Total assets as of June 30, 2025, amounted to HKD 1,236.71 million, an increase from HKD 1,005.56 million as of December 31, 2024[27]. - Total liabilities increased to HKD 711.71 million from HKD 516.61 million at the end of 2024, indicating a rise in financial obligations[27]. - The group's debt-to-equity ratio increased to 44.8% as of June 30, 2025, compared to 38.3% as of December 31, 2024, due to a higher percentage increase in net debt than total equity[71]. - Total borrowings included secured bank loans of approximately HKD 279.3 million and unsecured bank loans of approximately HKD 80.8 million as of June 30, 2025, compared to HKD 231.3 million and HKD 39.0 million respectively as of December 31, 2024[72]. Expenses and Costs - The cost of goods sold increased to HKD 379,579,000, up 16.4% from HKD 326,091,000 in the previous year[30]. - Employee benefits expenses rose significantly to HKD 43,295,000, an increase of 37.7% compared to HKD 31,456,000 in 2024[30]. - Selling and distribution expenses increased by 61.3% to HKD 71.7 million, primarily due to higher advertising and promotional costs[64]. - The total employee cost for the review period was approximately HKD 43.3 million, up from HKD 31.5 million in the previous year[85]. Dividends and Shareholder Returns - The board has resolved not to declare any interim dividend for the first half of 2025, consistent with the first half of 2024[6]. - The company did not declare any dividends for the six months ended June 30, 2025, consistent with the previous year[36]. - The company did not recommend any interim dividend for the review period, consistent with the previous year[86]. Strategic Initiatives and Market Position - The company plans to continue monitoring performance across its operating segments to make informed resource allocation decisions[22]. - The company aims to expand its presence in the Southeast Asian market, capitalizing on the region's growth potential[42]. - The company has diversified its operations across distribution, retail, and e-commerce segments, enhancing its market position in Hong Kong, Macau, mainland China, and Southeast Asia[43]. - The group continues to provide comprehensive marketing and management services for its agency brands, enhancing its product portfolio and business diversification to improve market share and gross margin[49]. - The group has registered over 60 trademarks for its own brand products, with popular items including "BG Pro Immunoglobulin Capsules" and "Kinmen Qiangxiao Essential Oil Patches"[50]. - The group is actively upgrading its own brand products to meet market demand, including enhanced versions of "BG Pro Brain Active" and "Kinmen Qiangxiao Pain Relief Gel"[50]. - The group has established procurement centers in various countries, including Japan, South Korea, and Singapore, to diversify its product offerings and enhance international presence[53]. - The Southeast Asian market has shown strong performance, with distribution sales particularly robust in Singapore and Malaysia, contributing significantly to revenue growth[53]. - The group has secured exclusive distribution rights for several brands in Malaysia, including Tianjin Tongrentang, which has popular products like "Vegetarian White Phoenix Pills" and "Compound Phlegm-Relieving Syrup" contributing to local sales[53]. - The group has formed partnerships with major personal care chains in Malaysia and Singapore, expanding its retail network and becoming a key player in the traditional Chinese medicine and health product market[55]. - The strategic acquisition of CWA is expected to enhance the company's presence in Southeast Asia and improve operational compliance across the region[60]. - The company plans to adjust its product mix and market strategies in response to the traditional tourism peak season in the second half of the year[59]. - The company aims to diversify its business and reduce risks by implementing different development strategies tailored to various regions and local cultures[58]. Share Issuance and Capital Management - The company entered into a subscription agreement with Jacobson Group Treasury Limited to issue 94 million shares at HKD 0.5 per share, raising approximately HKD 47 million[44]. - The subscription price represented a 25% premium over the closing price of HKD 0.4 on the agreement date[44]. - The net proceeds from the subscription are intended for investment in core business growth, supply chain improvements, and general working capital[44]. - The net proceeds from the subscription agreement amount to approximately HKD 46.7 million, with allocations for inventory purchases and marketing activities[56]. - As of June 30, 2025, the group has utilized HKD 20.7 million of the net proceeds, with HKD 26 million remaining for future operational needs[57]. Compliance and Governance - The audit committee reviewed the group's accounting principles and practices, ensuring that the unaudited condensed consolidated financial statements fairly presented the group's financial position and performance during the review period[92]. - The mid-term performance announcement and report for 2025 were published on the Hong Kong Stock Exchange and the company's website, containing all information required by listing rules[93].
满贯集团(03390) - 2025 - 中期业绩