Financial Performance - The company's revenue for the first half of 2023 reached HKD 4,989,459,000, a 47.6% increase compared to HKD 3,379,641,000 in the same period last year[6]. - Operating profit for the same period was HKD 139,252,000, reflecting a 7.7% increase from HKD 129,249,000 year-on-year[7]. - Shareholders' profit attributable to the company decreased by 4.7% to HKD 59,132,000, down from HKD 62,051,000 in the previous year[7]. - The fresh food segment generated revenue of HKD 3,831,666,000, accounting for 76.8% of total revenue, with a year-on-year increase of 114.2%[9]. - The fresh food segment's profit increased by 53.0% to HKD 59,845,000, compared to HKD 39,104,000 in the previous year[9]. - The tinplate business saw a revenue decline of 27.4% to HKD 1,147,796,000, with a segment profit decrease of 26.6% to HKD 51,639,000[12]. - The property leasing business reported a rental income of HKD 9,997,000, a decrease of 7.4% year-on-year, but achieved a segment profit increase of 6.1% to HKD 5,178,000[14]. - Net profit for the period was HKD 71,736, slightly down from HKD 72,084, indicating a decrease of 0.5%[36]. - The company reported a profit of HKD 59,132,000 for the six months ended June 30, 2023, compared to HKD 62,051,000 for the same period in 2022, reflecting a decrease of approximately 4.9%[42]. - The company reported a total comprehensive income of HKD (16,004) for the period, compared to HKD (45,139) in the previous year, indicating an improvement[37]. - Total comprehensive income for the period was a loss of HKD 24,237,000, compared to a loss of HKD 47,265,000 in the previous year, indicating an improvement[44]. Assets and Liabilities - The group's total assets as of June 30, 2023, were HKD 4,816,424,000, with total liabilities of HKD 2,076,956,000, representing a decrease of HKD 67,582,000 and HKD 23,137,000 respectively compared to the end of 2022[17]. - Total assets as of June 30, 2023, were HKD 5,542,424, a decrease from HKD 5,537,006 as of December 31, 2022[39][40]. - Non-current assets increased to HKD 2,307,867 from HKD 2,200,745, showing a growth of 4.9%[39]. - Current liabilities decreased to HKD 1,584,851 from HKD 1,721,256, a reduction of 7.9%[40]. - The total liabilities increased to HKD 2,076,956,000 from HKD 2,100,093,000 at the end of 2022, indicating a reduction of 1.1%[59]. - Cash and cash equivalents amounted to HKD 937,644,000, a decrease of 22.6% from the end of 2022, with 81.3% in RMB and 3.8% in USD[18]. - Cash and cash equivalents decreased to HKD 937,644,000 as of June 30, 2023, from HKD 1,211,631,000 as of December 31, 2022, a decline of 22.5%[75]. - Business receivables increased to HKD 448,548,000 as of June 30, 2023, from HKD 382,941,000 as of December 31, 2022, representing a rise of 17.1%[71]. - Business payables decreased to HKD 133,174,000 as of June 30, 2023, from HKD 188,941,000 as of December 31, 2022[81]. - The group reported a total of HKD 985,292,000 in business and other payables as of June 30, 2023, compared to HKD 969,461,000 as of December 31, 2022[81]. Capital Expenditure and Investments - Capital expenditure for the first half of 2023 was HKD 259,432,000, significantly up from HKD 98,238,000 in the same period of 2022[19]. - The group anticipates total capital expenditure for 2023 to be approximately HKD 336,040,000[19]. - The group has committed a total investment of RMB 100 million (approximately HKD 108,460,000) in a limited partnership focused on non-listed companies in the food and agriculture sectors[20]. - The total cost of acquiring and relocating property, plant, and equipment was HKD 259,432,000 for the six months ended June 30, 2023, compared to HKD 98,238,000 in 2022, indicating a substantial increase of 164.5%[67]. - The company invested HKD 244,429,000 in property, plant, and equipment during the period, compared to HKD 97,078,000 in the previous year, indicating a focus on expansion[46]. Dividends and Shareholder Returns - The company announced an interim dividend of HKD 0.01 per share, consistent with the previous year[8]. - The company declared dividends amounting to HKD 18,152,000 for the period, compared to HKD 13,614,000 in the previous year, representing an increase of approximately 33.5%[42]. - The board has declared an interim dividend of HKD 0.01 per share for 2023, consistent with the previous year[134]. - The final dividend for the previous fiscal year was approved at HKD 0.02 per ordinary share, totaling HKD 18,152,000, an increase from HKD 13,614,000 in the prior year[86]. Operational Strategies and Market Position - The company maintained a market share of approximately 47% in the live pig supply market, contributing to overall profitability[10]. - The company is actively seeking new market opportunities and enhancing product competitiveness through innovation and supply chain management[13]. - The group plans to optimize its capital layout and structure in the fresh food business, aiming to enhance resource allocation quality and efficiency[29]. - The group aims to strengthen its risk management and adjust operational strategies to ensure sustainable business development amid global economic pressures[30]. - The company continues to focus on expanding its fresh food and tinplate product segments as part of its growth strategy[54]. Employee and Management Costs - Employee costs rose to HKD 164,574,000 for the six months ended June 30, 2023, compared to HKD 132,230,000 in 2022, marking an increase of 24.4%[61]. - The total remuneration for key management personnel for the six months ended June 30, 2023, was HKD 2,043,000, an increase from HKD 1,613,000 in 2022[108]. - The group’s short-term employee benefits for key management personnel increased to HKD 1,623,000 in 2023 from HKD 1,365,000 in 2022[108]. - The group's retirement benefit expenses for the six months ended June 30, 2023, amounted to HKD 12,494,000, an increase from HKD 11,176,000 for the same period in 2022[98]. Compliance and Governance - The company has maintained compliance with the Corporate Governance Code as per the listing rules during the six months ending June 30, 2023[120]. - The company has confirmed that all directors complied with the standard code of conduct for securities transactions during the six months ending June 30, 2023[121]. - The group maintained a strong compliance monitoring system for its financial covenants, ensuring no violations were reported[79]. - The group had no breaches of covenants related to drawn credit facilities as of June 30, 2023[79]. Financing and Borrowings - The available bank financing amount for working capital and business financing was HKD 3,452,334,000, an increase from HKD 2,850,332,000 at the end of 2022[18]. - The total bank borrowings as of June 30, 2023, were HKD 865,883,000, a slight decrease from HKD 913,486,000 as of December 31, 2022[78]. - Unsecured borrowings from a related company amounted to HKD 32,538,000 due within one year and HKD 63,334,000 due after one year, with interest rates of 3.0%[84]. - The outstanding principal for Loan Financing 1 as of June 30, 2023, is HKD 100 million[131]. - The outstanding principal for Loan Financing 2 as of June 30, 2023, is HKD 400 million[132]. - The outstanding principal for Loan Financing 3 as of June 30, 2023, is HKD 550 million[133].
广南(集团)(01203) - 2023 - 中期财报