Financial Performance - In the first half of 2023, the group's revenue was HKD 770 million, a decrease of 21.4% compared to HKD 979 million in the same period of 2022[35]. - The group recorded a loss attributable to equity holders of approximately HKD 20 million, compared to a loss of HKD 11 million in the first half of 2022[35]. - Fresh meat sales amounted to HKD 443 million, a decrease of 31.3% from HKD 644 million in the first half of 2022, accounting for approximately 57% of total revenue before internal sales[35]. - The sales revenue of deep-processed meat products was HKD 232 million, a decrease of approximately 10.2% compared to HKD 258 million in the first half of 2022[18]. - Revenue from low-temperature meat products was HKD 140 million, a decrease of approximately 3.1% compared to HKD 145 million in the same period last year, accounting for about 18% of total revenue before internal sales[65]. - Revenue from high-temperature meat products was HKD 92 million, down from HKD 113 million in the same period last year, representing approximately 12% of total revenue before internal sales[65]. - For the six months ended June 30, 2023, the company reported total revenue of HKD 549,207,000, a decrease of 24% compared to HKD 721,623,000 for the same period in 2022[173]. - Total revenue for the six months ended June 30, 2023, was HKD 780,918,000, a decrease of 20.2% compared to HKD 979,630,000 for the same period in 2022[194]. Profitability and Loss - The overall gross profit increased by 4.2% to HKD 69 million, with the overall gross margin rising by 2.2 percentage points to 9.0% compared to 6.8% in the same period last year[19]. - The gross margin for downstream processed meat products increased to 25.8%, up 6.9 percentage points from 18.9% in the same period last year[41]. - The operating loss for the review period was approximately HKD 28 million, compared to a profit of approximately HKD 9 million in the same period last year[71]. - The company incurred a total comprehensive loss of HKD 22,313,000 for the six months ended June 30, 2023[138]. - The consolidated loss for the period was HKD 39,149,000, compared to a loss of HKD 16,135,000 in the previous year, indicating a significant increase in losses[194]. - Basic and diluted loss per share for the period was HKD 0.011, compared to HKD 0.006 in the previous year[150]. Operating Expenses - The operating expenses for the period were HKD 99 million, which included a provision for impairment losses of HKD 36 million, compared to HKD 62 million in the first half of 2022[24]. - The overall operating expenses, excluding impairment losses, were HKD 63 million, which is comparable to the previous year, accounting for 8.2% of total revenue[24]. - Employee costs for the review period totaled HKD 51 million, representing 6.6% of revenue, compared to HKD 55 million and 5.6% of revenue in the first half of 2022[113]. - The company’s total personnel expenses for the six months ended June 30, 2023, were HKD 50,616,000, a decrease of 8.2% from HKD 54,998,000 in the previous year[197]. Assets and Liabilities - Total assets as of June 30, 2023, were HKD 1.139 billion, a decrease of HKD 38 million from HKD 1.177 billion as of December 31, 2022[53]. - Total liabilities decreased by HKD 32 million to HKD 1.640 billion as of June 30, 2023, compared to HKD 1.672 billion at the end of 2022[53]. - As of June 30, 2023, the company's outstanding bank loans amounted to HKD 469 million, a decrease of HKD 15 million from HKD 484 million at the end of the previous year[72]. - As of June 30, 2023, the company's current liabilities and total liabilities were HKD 982,359,000 and HKD 500,934,000, respectively[188]. - The company has approximately HKD 572 million in non-current assets to support daily operations despite being in a net debt position[55]. Strategic Focus and Management - The company plans to focus on high-margin products and adjust its product structure to balance profit and market demand[18]. - The company aims to leverage its core competitiveness in resources, strategy, and branding to capture opportunities in the evolving meat market[30]. - The company has established a systematic quality management system to ensure product quality meets high standards[10]. - The company has established a risk management and internal control system to safeguard assets and manage business risks[107]. - The company is actively communicating with banks regarding the renewal and waiver of loan covenants and is implementing operational plans to enhance profitability and generate sufficient cash flow[83]. Corporate Governance - The company has maintained a high standard of corporate governance, with a board composed of experienced individuals and a majority of independent non-executive directors[130]. - The company has adopted a set of comprehensive corporate governance measures to enhance shareholder value[129]. - No new share options were granted under the new share option scheme since its adoption[99]. - The company has not entered into any arrangements that would allow directors to benefit from purchasing shares or debt securities of the company or any other corporate body during the review period[105]. Market Conditions and Trends - The total number of live pigs slaughtered in China reached 375.48 million, an increase of 2.6% year-on-year, with pork production at 30.32 million tons, up 3.2% year-on-year[30]. - The company noted that its operations are affected by seasonal fluctuations, with demand for processed meat products peaking around the Lunar New Year[174]. - The company experienced a significant increase in litigation provisions, with approximately HKD 229,000 related to patent infringement claims in China for the six months ended June 30, 2023[175].
雨润食品(01068) - 2023 - 中期财报