Financial Performance - The company reported a significant increase in net profit by HKD 30.5 million or 20.7% to HKD 177.9 million, driven by strong sales and a one-time net gain from the distribution of shares [28]. - Operating profit increased by HKD 2.7 million or 1.7% to HKD 166.0 million, primarily due to increased sales, offset by a decrease in logistics service income and increased operating expenses [25]. - Revenue for the six months ended September 30, 2023, was HKD 714,918,000, an increase from HKD 581,891,000 in the same period of 2022, representing a growth of 22.8% [169]. - Total comprehensive income for the period was HKD 172,685,000, compared to HKD 114,148,000 in the previous year, showing an increase of 51.3% [169]. - Profit for the period increased by HKD 52.6 million or 42.0% after excluding one-time government subsidies [52]. - The group reported a significant increase in bank deposits and investment income, amounting to HKD 218,120,000, compared to HKD 3,287,000 in the previous year [188]. - The group’s profit for the period was HKD 714,918,000, with a reported profit from continuing operations of HKD 242,521,000, compared to HKD 235,462,000 in the prior year, reflecting a slight increase of 3.5% [188]. Cost and Expenses - Employee costs rose by HKD 11.3 million or 9.4%, reflecting the need to increase production to meet rising product demand and to attract and retain production staff [24]. - Sales costs increased by HKD 85.7 million or 26.1%, consistent with overall sales growth, with material costs comprising approximately 44% of total sales costs [44]. - Financing costs surged by HKD 27.9 million or 142.2% due to rising market interest rates during the reporting period [48]. - The total employee cost for the reporting period was HKD 215.4 million, an increase from HKD 182.0 million in the same period last year [19]. - The amortization of intangible assets and depreciation amounted to HKD 10,373,000 for the six months ended September 30, 2023, down from HKD 11,480,000 in the previous year [193]. Business Development and Strategy - The company aims to solidify its position as a leading supplier of essential and specialty drugs in Hong Kong and Asia, focusing on growth strategies [17]. - The company continues to invest in new product development and has engaged external experts to enhance overall R&D capabilities [63]. - The company has successfully integrated Arsenic Trioxide Oral Solution into the prescription list of a major hospital, marking a significant step in its market expansion strategy [14]. - The company is committed to enhancing its business infrastructure, including logistics and regulatory management, supported by an SAP system to improve supply chain efficiency [5]. - The group has successfully completed multiple acquisitions and continues to seek new acquisition opportunities while conducting thorough due diligence [85]. Cash Flow and Financial Position - The cash generated from operating activities for the six months ended September 30, 2023, was HKD 276,336 thousand, a decrease from HKD 307,987 thousand in the same period of 2022, representing a decline of approximately 10.3% [152]. - The total cash and cash equivalents decreased by HKD 411,225 thousand, compared to an increase of HKD 383,121 thousand in the same period of 2022 [152]. - As of September 30, 2023, the cash and cash equivalents amounted to HKD 871,048 thousand, down from HKD 860,409 thousand as of the same date in 2022 [152]. - The net cash used in investing activities for the six months ended September 30, 2023, was HKD 70,205 thousand, compared to a net cash used of HKD 11,467 thousand in the same period of 2022 [152]. - The group has a total of HKD 1,400,000,000 in syndicated loans, with an outstanding balance of HKD 872,000,000 as of the mid-term report date [91]. Regulatory and Compliance - The group has complied with all applicable laws and regulations during the reporting period, with no significant regulatory non-compliance issues [88]. - The company did not apply any new standards or interpretations that have not yet come into effect during the reporting period [156]. - The company’s actual tax rate is higher than the minimum tax rate specified in the OECD's Pillar Two framework, thus the recent tax amendments did not have a significant impact on the financial statements [158]. Shareholder Information - The board declared an interim dividend of HKD 0.025 per share for the six months ending September 30, 2023, totaling approximately HKD 48.4 million, compared to HKD 0.028 per share for the same period in 2022 [121]. - As of September 30, 2023, Mr. Chan holds 1,181,638,000 shares, representing approximately 61.09% of the company's issued share capital [124]. - The company has a significant shareholder structure, with Kingshill holding 850,684,000 shares, accounting for approximately 43.98% of the issued share capital [127]. - The company has not issued any stock options under its stock option plan since its inception, with a total of 37,000,000 options granted but none exercised as of September 30, 2023 [135]. Research and Development - The group has established a new research and development center in collaboration with a biological research institute, with an investment of HKD 5,882,000 [79]. - The company has revised its share award plan on September 21, 2023, to be funded solely by existing shares [139].
雅各臣科研制药(02633) - 2024 - 中期财报