Financial Performance - Revenue increased by 3.6% to approximately HK$922.8 million for the six months ended June 30, 2023, compared to approximately HK$890.6 million for the same period in 2022[8]. - Gross profit rose by 12.3% to approximately HK$222.9 million, up from approximately HK$198.4 million in the prior year[8]. - Gross profit margin improved by 1.9 percentage points to 24.2%, compared to 22.3% for the six months ended June 30, 2022[8]. - Operating profit was approximately HK$56.3 million, an increase from approximately HK$39.1 million in the same period last year[8]. - Profit attributable to owners of the Company was approximately HK$38.5 million, compared to approximately HK$28.1 million for the six months ended June 30, 2022[8]. - Basic and diluted earnings per Share attributable to owners of the Company for the six months ended June 30, 2023 were HK5.3 cents, up 35.9% from HK3.9 cents for the same period in 2022[13]. - Profit for the period was HK$31,691,000, compared to HK$26,065,000 in 2022, reflecting a growth of 21.0%[82]. - The comprehensive income for the period ended June 30, 2023, was HK$26,681,000, compared to HK$14,226,000 for the same period in 2022, indicating a year-over-year increase of approximately 87.5%[85]. Dividends - An interim dividend of HK2.0 cents per share was declared for the six months ended June 30, 2023, up from HK1.0 cent per share in the previous year[8]. - The Company declared an interim dividend of HK$0.02 per share for the six months ended 30 June 2023, with payment expected around 28 September 2023[73]. - A final dividend of HK3.0 cents per Share was approved on 24 May 2023, with a total dividend payout of approximately HK$22,028,000 during the six months ended 30 June 2023[200]. Revenue Breakdown - The revenue from the hospitality supplies business was approximately HK$751.0 million, representing 81.4% of the Group's total revenue, compared to 73.5% in the same period of 2022[17]. - Revenue from the hospitality supplies business increased by 14.8% to approximately HK$751.0 million for the six months ended June 30, 2023, contributing 81.4% to the Group's total revenue[35]. - Revenue from the health care and hygienic products business for the six months ended June 30, 2023, was approximately HK$105.3 million, a decline from HK$165.8 million for the same period in 2022, contributing 11.4% to total revenue[40]. - Revenue from health care and hygienic products in Hong Kong was approximately HK$3.5 million, a significant drop from HK$72.1 million in the same period of 2022, representing only 3.3% of total segment revenue[40]. - Revenue from North America and other markets for health care and hygienic products was approximately HK$95.8 million and HK$6.0 million, respectively, compared to HK$72.9 million and HK$20.8 million in the same period of 2022, representing 91.0% and 5.7% of total segment revenue[40]. Cost Management and Profitability - The Group actively manages its liquidity position with standby banking facilities to support daily operations and potential capital demands for future development[13]. - The Group has implemented various measures, including enhanced cost control, contributing to the improved gross profit margin[17]. - The Group plans to control costs and increase efficiency by utilizing resources in Cambodia and seeking cost-effective raw materials to improve profit margins amid rising production costs[46]. - The Group reported finance costs of HK$3,489,000 for the six months ended June 30, 2023, which is an increase from HK$1,679,000 in the same period of 2022, representing a rise of about 108.5%[184]. - Finance income for the six months ended June 30, 2023, was HK$1,787,000, significantly higher than HK$168,000 in the same period of 2022, marking an increase of approximately 964.3%[184]. Assets and Liabilities - As of June 30, 2023, the Group's cash and cash equivalents amounted to approximately HK$356.6 million, an increase from approximately HK$305.4 million as of 31 December 2022[13]. - The Group's net assets as of 30 June 2023 were approximately HK$1,136.4 million, slightly up from approximately HK$1,131.5 million as of 31 December 2022[13]. - Total assets as of June 30, 2023, amounted to HK$1,803,329,000, an increase from HK$1,749,461,000 at the end of 2022[79]. - Total current liabilities increased to HK$643,538,000 from HK$596,371,000 at the end of 2022[80]. - The Group's total borrowings amounted to HK$92,930,000, a decrease from HK$108,547,000 as of December 31, 2022, representing a reduction of approximately 14.4%[173]. Market Outlook and Strategy - The global tourism industry is expected to fully recover, driven by the post-pandemic "revenge travel" trend and various regions' strategies to attract tourists[40]. - The Group is optimistic about the Southeast Asian market due to its rapid economic growth and increasing consumer demand, planning to enhance production efficiency in Cambodia to meet hospitality supply needs[41]. - The Group aims to expand its health care and hygienic products business by strengthening R&D and leveraging online marketing to reach more target customer groups, including individual consumers and hospitals[41]. - The Group is committed to establishing a green production system by adopting environmentally friendly materials and optimizing its production system to improve ESG performance[41]. Financial Risks and Management - The Group's activities are exposed to various financial risks, including market risk, credit risk, and liquidity risk[96]. - The Group has not experienced any changes in financial risk management since year-end[96]. - The Group's cash and bank balances in the PRC as of June 30, 2023, were approximately HK$84,654,000, up from approximately HK$67,253,000 as of December 31, 2022[162]. Shareholder Information - As of June 30, 2023, the total number of issued shares was 734,262,697[51]. - The total interests of the directors and substantial shareholders indicate a significant concentration of ownership within the company[56]. - The company aims to attract and retain talent through its share award scheme, which has been in place since September 23, 2016[167].
明辉国际(03828) - 2023 - 中期财报