Financial Position - As of June 30, 2023, the group's net current assets amounted to approximately RM 180.8 million, an increase from RM 169.5 million as of December 31, 2022[2]. - The group's cash and cash equivalents were approximately RM 38.0 million as of June 30, 2023, compared to RM 23.0 million as of December 31, 2022[2]. - The debt-to-equity ratio as of June 30, 2023, was approximately 29.8%, down from 35.0% as of December 31, 2022, primarily due to an increase in equity and a decrease in lease liabilities[3]. - The company’s total assets as of June 30, 2023, amounted to 215,576 thousand MYR, an increase from 212,927 thousand MYR at the beginning of the year[43]. - The company’s total liabilities decreased from 79,678 thousand MYR as of December 31, 2022, to 76,122 thousand MYR as of June 30, 2023, reflecting a reduction of approximately 3.2%[101]. - The total interest-bearing borrowings as of June 30, 2023, were 63,269 thousand MYR, compared to 48,721 thousand MYR for the current portion and 14,548 thousand MYR for the non-current portion[122]. Revenue and Profitability - The company reported a profit before tax of 23,662 thousand MYR for the six months ended June 30, 2023, compared to 22,630 thousand MYR for the same period in 2022, representing an increase of 4.6%[44]. - The total comprehensive income for the period was 16,351 thousand MYR, compared to 15,808 thousand MYR for the same period in 2022, indicating a growth of 3.4%[43]. - The company's revenue for the six months ended June 30, 2023, increased by approximately MYR 81.8 million or 20.5% to about MYR 481.7 million, compared to approximately MYR 399.9 million for the same period in 2022[181]. - Revenue from the distribution and sale of food and beverages for the six months ended June 30, 2023, was MYR 6,005,000, an increase from MYR 5,237,000 in the same period of 2022[141]. - The increase in revenue was primarily driven by a rise in distribution income from third-party brands, which increased by approximately MYR 79.8 million, mainly due to growth in dairy products, sauces, oils, and seasonings[181]. - Net profit for the period was approximately 16.5 million MYR, compared to about 16.0 million MYR in the same period last year, with a net profit margin decreasing from 4.0% to 3.4%[188]. Expenses and Costs - Employee costs, including directors' remuneration, totaled RM 20,326 thousand for the six months ended June 30, 2023, up from RM 17,885 thousand in the previous year[32]. - The cost of inventory for the six months ended June 30, 2023, was RM 415,637 thousand, compared to RM 336,360 thousand for the same period in 2022[32]. - Selling and distribution expenses rose by approximately 4.5 million MYR or 20.4% to about 26.6 million MYR, driven by increased salaries and transportation costs due to revenue growth of approximately 20.5%[185]. - Administrative and other operating expenses increased by approximately 1.8 million MYR or 21.2% to about 10.3 million MYR, mainly due to higher professional fees and director remuneration[186]. - Financing costs increased by approximately 0.5 million MYR or 71.4% to about 1.2 million MYR, attributed to rising interest rates following the Bank Negara Malaysia's actions to curb inflation[187]. Cash Flow and Investments - The net cash generated from operating activities for the six months ended June 30, 2023, was 21,279 thousand MYR, significantly up from 5,228 thousand MYR in the same period of 2022[44]. - The company’s net cash from investing activities was 5,170 thousand MYR for the six months ended June 30, 2023, compared to a net outflow of (2,679) thousand MYR in the same period of 2022[44]. - Total lease cash outflow for the six months ended June 30, 2023, was approximately MYR 10,147,000, compared to MYR 904,000 for the same period in 2022, with MYR 9,450,000 related to the settlement of remaining consideration for a leasehold land acquired in the year ended December 31, 2022[126]. Inventory and Receivables - The company’s inventory increased by 5,203 thousand MYR during the first half of 2023, compared to a decrease of (13,358) thousand MYR in the same period of 2022[44]. - Trade receivables from third parties amounted to MYR 121,033,000 as of June 30, 2023, compared to MYR 120,100,000 as of December 31, 2022[95]. - The group’s inventory as of June 30, 2023, was valued at MYR 97,898,000, compared to MYR 102,630,000 as of December 31, 2022[94]. - Trade receivables aged analysis showed that MYR 70,300,000 was not overdue as of June 30, 2023[83]. Corporate Actions and Future Plans - The company declared a special dividend to shareholders listed as of July 17, 2023, with the dividend fully paid on August 14, 2023[35]. - The company plans to utilize IPO proceeds for enhancing distribution capabilities, developing proprietary products, and strategic acquisitions, with a total of 105.2 million HKD allocated for these purposes[190]. - The company successfully listed on the Main Board of the Hong Kong Stock Exchange on August 19, 2022, marking a significant milestone for future development[181]. Market Position and Strategy - The company operates in the FMCG trading and distribution sector, focusing on sustainable practices and extensive experience in last-mile delivery in Malaysia[171]. - The company has established partnerships with key retailers in Malaysia, leveraging over 40 years of industry experience to enhance brand presence and market reach[171]. - The company aims to drive sustainable growth while fostering production practices and enhancing client relationships through strategic initiatives[171]. - The company is recognized as one of the top 10 most promising FMCG trading and distribution companies in Malaysia for 2023[172]. - The board of directors includes experienced members with over 30 years in the F&B distribution industry, ensuring strong leadership and strategic direction[171]. Other Financial Metrics - Gross profit margin decreased to approximately 12.1% from about 14.2% in the same period last year, primarily due to competitive pricing strategies and inflationary pressures not fully passed on to customers[184]. - Other income increased by approximately 2.9 million MYR or 580.0% to about 3.4 million MYR, mainly due to higher interest income and foreign exchange gains[185]. - The company confirmed that the capital reserve represents the excess of the net proceeds from the issuance of shares over their par value, which can be distributed to shareholders[134].
双财庄(02321) - 2023 - 中期财报