Financial Performance - The Group's revenue for the six months ended 30 September 2023 decreased by approximately 44.6% to approximately HK$1,136.1 million, compared to approximately HK$2,050.5 million for the same period in 2022[14]. - Profit attributable to owners of the parent for the Period was approximately HK$111.0 million, a significant recovery from a loss of approximately HK$23.6 million in the same period last year[16]. - The decrease in revenue was primarily due to reduced sales from property development projects in which the Group has a controlling stake[15]. - The increase in profit was attributed to higher share of results from joint ventures and increased sales and gross profit from pharmaceutical and health food products[16]. - The Group did not recommend the payment of any interim dividend for the six months ended 30 September 2023, consistent with the previous year[13]. Cost and Expenses - The increase in finance costs was noted due to interest rate increments during the Period compared to the corresponding period in 2022[16]. - Administrative expenses were approximately HK$253.4 million, down from HK$270.5 million in the previous period, while selling and distribution expenses decreased to approximately HK$197.3 million from HK$203.6 million[23]. - Finance costs increased to approximately HK$173.4 million from HK$130.9 million, mainly due to rising interest rates[24]. Strategic Focus - The Group's performance reflects a strategic shift towards enhancing its pharmaceutical and health food product lines[16]. - The management highlighted the importance of addressing the challenges in property project deliveries to stabilize revenue streams moving forward[15]. - Future strategies may include further investments in joint ventures to leverage growth opportunities in the health sector[16]. - The Group aims to improve operational efficiency to mitigate the impact of rising finance costs on profitability[16]. Property Development - The property development segment recorded revenue of approximately HK$375.1 million and segment profit of approximately HK$10.1 million, down from HK$1,358.2 million and HK$130.0 million respectively for the six months ended 30 September 2022[39]. - Revenue from the Group's property development business in the PRC was approximately HK$116.7 million, a slight increase from HK$108.2 million in the previous period, attributed to more property sales deliveries[40]. - Revenue contribution from Wang On Properties Group's property development was approximately HK$258.4 million, primarily from sales of "The Met. Azure" and "LADDER Dundas" projects[43]. Agricultural and Fresh Market Operations - Fresh market and agricultural produce exchange market segment recorded a revenue increase of approximately 0.4% to approximately HK$332.7 million for the six months ended 30 September 2023[49]. - The CAP Group contributed approximately HK$193.8 million from agricultural produce exchange markets in China, while fresh market operations in Hong Kong contributed approximately HK$138.9 million[49]. - The Group operates 11 agricultural produce exchange markets across five provinces in China, significantly expanding its presence in this segment[57]. Pharmaceutical and Health Food Products - Revenue from the pharmaceutical and health food products segment reached approximately HK$365.4 million, representing a 22.3% increase from HK$298.7 million for the six months ended September 30, 2022[71]. - Revenue from Chinese pharmaceutical and health food products increased by approximately 23.8% to approximately HK$329.0 million, compared to HK$265.7 million for the six months ended September 30, 2022[72]. - New products, including Cordyceps Plus for respiratory support, were introduced to address seasonal influenza and long Covid symptoms[78]. Financial Position - The Group's net assets as of 30 September 2023 were approximately HK$9,250.5 million, a slight decrease from HK$9,379.4 million as of 31 March 2023[34]. - Total borrowings as of 30 September 2023 were approximately HK$6,536.3 million, resulting in a net debt position of approximately HK$5,351.4 million[34]. - The Group maintained a healthy cash balance of approximately HK$1,333.0 million as of 30 September 2023, down from HK$1,749.0 million as of 31 March 2023[34]. Investment and Acquisitions - On September 6, 2023, the Group agreed to acquire 2,007,700,062 ordinary shares of CAP for HK$200 million, increasing its equity interest in CAP from approximately 53.37% to 73.54%[149]. - The Group has partnered with APG Strategic Real Estate Pool for the acquisition and redevelopment of residential properties in Hong Kong[112]. - The Group's investment strategy remains prudent, with a focus on long-term holdings aimed at generating stable income[143]. Market Conditions and Economic Outlook - The Chief Executive's recent Policy Address included measures to ease property policies, such as reducing buyers' stamp duties on new homes by half, which is expected to positively impact the property market[169]. - The Group anticipates increased competition in fresh market operations due to a rise in the number of operators and the growing acceptance of online shopping and delivery services[170]. - The unemployment rate in Hong Kong dropped to 2.8% from July to September 2023, indicating an improving labor market[171]. Corporate Governance and Shareholding - As of September 30, 2023, Mr. Tang holds a total of 486,915,306 shares through Caister Limited and 531,000,000 shares through Billion Trader Investments Limited, both of which are wholly-owned by him[189]. - Ms. Yau holds 810,322,940 shares of WYT, which is about 69.19% of the total issued shares[191]. - The company has not granted any rights to acquire shares or debentures to any directors or chief executives during the period[197].
WANG ON GROUP(01222) - 2024 - 中期财报