Financial Performance - Total revenue for the first half of 2023 reached HKD 666.3 million, a 13.3% increase from HKD 588.2 million in the same period of 2022[18]. - Distribution revenue grew by 28.6% to HKD 375.1 million, while e-commerce revenue decreased by 7.1% to HKD 275.4 million[18]. - Gross profit increased by 34.9% to HKD 173.1 million, with a gross margin of 26.0%, up from 21.8% in 2022[18]. - Profit attributable to equity holders surged by 289.5% to HKD 87.5 million, resulting in a profit margin of 13.1% compared to 3.8% in the previous year[18]. - EBITDA for the first half of 2023 was HKD 117.7 million, a significant increase of 178.0% from HKD 42.4 million in 2022[18]. - Net profit surged to HKD 87.0 million, a significant increase of 281.9% compared to HKD 22.8 million in the first half of 2022[26]. - Profit before tax increased significantly to HKD 96,514,000, compared to HKD 29,437,000 in the previous year, marking a growth of 227.5%[80]. - Basic earnings per share for the six months ended June 30, 2023, was HKD 11, up from HKD 3 for the same period in 2022, indicating a significant increase of 266.7%[119]. Assets and Liabilities - Total assets as of June 30, 2023, amounted to HKD 1,187.8 million, reflecting a 17.4% increase from HKD 1,012.1 million at the end of 2022[19]. - Total liabilities increased by 11.4% to HKD 801.0 million, while total equity rose by 31.9% to HKD 386.8 million[19]. - Cash and cash equivalents as of June 30, 2023, were approximately HKD 70.5 million, down from HKD 74.6 million at the end of 2022[42]. - The debt-to-equity ratio improved to 40.8% from 47.6% as total equity growth outpaced net debt growth[42]. - Total current liabilities increased to HKD 787,438 thousand as of June 30, 2023, compared to HKD 714,777 thousand at the end of 2022, representing a growth of 10.1%[82]. - Total equity surged to HKD 386,777 thousand as of June 30, 2023, up from HKD 293,160 thousand, reflecting a significant increase of 31.9%[82]. Market and Sales Growth - The retail market in Hong Kong showed signs of recovery, with retail sales in the first half of 2023 reaching HKD 205.1 billion, approximately 85% of the levels seen in the same period of 2019[24]. - The company anticipates continued growth in offline sales driven by the recovery of inbound tourism and upcoming traditional peak consumption seasons[25]. - Hong Kong distribution sales increased by 28.0%, while Macau distribution sales rose by 10.9% in the first half of 2023[28]. - Southeast Asia distribution sales saw a remarkable growth of 114.2% year-on-year in the first half of 2023[28]. - Revenue from Hong Kong rose by 35.0% to HKD 301.0 million, while revenue from Macau increased by 10.9% to HKD 60.1 million due to the resumption of normal travel between mainland China and Hong Kong[38]. Strategic Developments - The group plans to utilize proceeds from the sale of 51% stake in Combo Win Asia Limited to enhance distribution efforts in Hong Kong, Macau, and Southeast Asia[26][28]. - The group has secured exclusive agency rights for several international brands, including Culturelle® and Kaminowa, enhancing its product portfolio[31]. - The group is actively developing its own brands, including Boost & Guard Pro and Craft by Wakan, to meet the rising demand from travelers and market trends[32]. - The group has established procurement centers in various countries, including Japan and Malaysia, to diversify its product offerings and enhance international presence[33]. - The company plans to expand its business in the Greater Bay Area and Southeast Asia, focusing on health and lifestyle products[36]. Employee and Governance - The total employee cost for the group was approximately HKD 30.9 million for the review period, up from HKD 27.8 million in the previous year[54]. - The group had no significant capital commitments or contingent liabilities as of June 30, 2023[51]. - The company has adopted the Corporate Governance Code and has complied with its provisions, except for the separation of roles between the Chairman and the CEO[60]. - The Chairman and CEO roles are currently held by the same individual, which the board believes does not impair the balance of power and authority[60]. - The group has a total of 208 employees across various regions, an increase from 174 employees a year ago[54]. Acquisitions and Investments - The group acquired an additional 12% stake in 康寧行有限公司 for HKD 9.12 million, bringing total ownership to 61%[30]. - The company completed the acquisition of 12% of the issued shares of 康寧行 for a total consideration of HKD 9,120,000, increasing its ownership to 61%[48]. - 康寧行 contributed revenue of HKD 15,719,000 and net profit of HKD 511,000 from May 31, 2023, to the interim consolidated income statement[156]. - The fair value of identifiable assets acquired from 康寧行 totaled HKD 52,444,000, including intangible assets of HKD 15,700,000 and trade receivables of HKD 34,040,000[154]. - A sale agreement was signed on July 7, 2023, to sell 51% of Combo Win Asia Limited for HKD 130,000,000, pending certain conditions[157]. Shareholder Information - As of June 30, 2023, the Chairman holds approximately 56.01% of the company's shares[64]. - The total number of shares issued as of June 30, 2023, is 800,000,000[69]. - No stock options were granted or exercised under the stock option plan during the review period, with a total of 80,000,000 shares potentially issuable upon exercise, representing 10% of the issued shares[73]. - The share award plan allows for a maximum of 40,000,000 shares to be granted, which is 5% of the total issued share capital at the time of adoption[74]. - The company aims to attract suitable talent and retain employees through the share award plan[74].
满贯集团(03390) - 2023 - 中期财报