Financial Performance - Total revenue for the first half of 2022 was HKD 340 million, a decrease of 1.8% compared to HKD 346.3 million in the same period of 2021[10]. - Gross profit decreased by 3.6% to HKD 202.8 million, with a gross margin of 59.6%, down from 60.8% in the previous year[10]. - Profit attributable to owners increased by 39.8% to HKD 10.2 million, primarily due to government subsidies totaling HKD 12.3 million received during the period[10]. - Revenue for the six months ended June 30, 2022, was HKD 339,998,000, a decrease of 1.1% compared to HKD 346,286,000 in the same period of 2021[57]. - Net profit for the period was HKD 5,019,000, down from HKD 6,862,000, indicating a decrease of approximately 26.8%[57]. - The company reported a net profit of HKD 7,272,000 for the period, down from HKD 6,862,000, reflecting a decrease of 5.9%[68]. - The net profit attributable to the company's owners was HKD 10,165,000, an increase of 39.0% from HKD 7,272,000 in 2021[127]. - Basic and diluted earnings per share for the period were HKD 1.55, compared to HKD 1.11 in the same period of 2021, reflecting an increase of approximately 39.6%[59]. Revenue Breakdown - Hong Kong retail business generated revenue of HKD 262.9 million, a decline of 2.8% year-on-year, accounting for 77.3% of total revenue[11]. - The group's wholesale revenue increased slightly by 1.8% year-on-year to HKD 77.1 million, with a profit rise of 1.1% to HKD 8 million despite rising raw material costs[16]. - In Hong Kong, wholesale revenue grew by 6.2% to HKD 64.2 million, attributed to strong relationships with major clients and the introduction of non-beverage products[17]. - Revenue from the mainland China wholesale business decreased by 15.5% to HKD 12.9 million due to pandemic-related restrictions, but the group strengthened connections with major clients in southern China[21]. Operational Developments - The company opened six new stores during the first half of 2022, bringing the total to 124 self-operated retail stores[12]. - The group plans to open one to two new stores in Hong Kong in the second half of the year, including a "HFT Life" store on a university campus[24]. - The group will enhance online sales and promotions through platforms like JD.com and Taobao, focusing on expanding its presence in Guangdong province[27]. - The group aims to maintain its leadership in the pre-packaged soup market by developing more products and participating in various exhibitions and online sales events[26]. - The group continued to expand its local retail network while promoting new products to stimulate customer spending[12]. Cost Management - Adjustments to product pricing were made to offset rising production costs during the first half of 2022[14]. - The cost of sales for the first half of 2022 was HKD 137,200,000, representing an increase of 1.0% from HKD 135,800,000 in the previous year, with the cost of sales as a percentage of revenue rising to 40.4% from 39.2%[33]. - Employee costs were HKD 96,700,000, down 5.7% from HKD 102,500,000, with the employee cost ratio to revenue improving to 28.4% from 29.6%[35]. Sustainability Initiatives - The company achieved a zero food waste disposal target, recycling approximately 515.9 tons of food waste, which reduced greenhouse gas emissions by about 109.9 tons CO2 equivalent[53]. - The company collected and recycled over 330,000 plastic bottles or aluminum cans through recycling machines during the review period[53]. - The company installed solar panels at its Tai Po factory, contributing approximately 90 MWh of renewable energy to the grid in the first half of 2022[54]. - The group will introduce new products, including a special edition bottled drink that uses 100% recycled plastic, to reduce plastic waste and carbon emissions[27]. Financial Position - Total assets as of June 30, 2022, were HKD 773,044,000, a decrease from HKD 814,066,000 as of December 31, 2021[63]. - Total liabilities decreased to HKD 447,191,000 from HKD 479,105,000, indicating a reduction of approximately 6.7%[65]. - Cash and cash equivalents at the end of the period were HKD 99,187,000, compared to HKD 128,509,000 at the end of the previous year, representing a decrease of 22.8%[72]. - The company incurred a loss of HKD 11,800,000 from investing activities, compared to a loss of HKD 17,489,000 in the previous year, showing an improvement of 32.5%[72]. - The company plans to maintain sufficient working capital to meet its financial obligations over the next twelve months[79]. Shareholder Information - As of June 30, 2022, Ms. Huang Peizhu and Mr. Xie Baoda each hold 404,052,600 shares, representing 61.59% of the total issued shares[171]. - The company has a significant concentration of ownership, with major shareholders holding over 61% of the total shares[176]. - The company has not disclosed any other individuals or entities holding significant stakes outside of the mentioned shareholders as of June 30, 2022[181]. - The company’s governance structure requires all major shareholders to maintain a consistent voting direction[173]. Corporate Governance - The audit committee consists of all three independent non-executive directors and is responsible for reviewing the financial procedures and risk management of the group[197]. - The company has complied with the Corporate Governance Code as set out in Appendix 14 of the listing rules during the six-month period ended June 30, 2022[195]. - No directors or key executives have disclosed interests in competing businesses as of June 30, 2022[184].
鸿福堂(01446) - 2022 - 中期财报