Financial Performance - For the six months ended September 30, 2023, the profit attributable to equity holders of the Company was HK$30,269,000, despite the absence of tax refunds and pandemic relief subsidies from the previous year[10]. - Total revenue for the Group was HK$1,954,785,000, with segment revenues from Hong Kong, Mainland China, and Japan being HK$914,183,000, HK$356,972,000, and HK$683,630,000 respectively[15]. - The adjusted profit before tax for the Group was HK$38,027,000, reflecting effective management of sales and operating expenses despite a decline in overall revenue[15]. - The Group's profit before tax for the six months ended 30 September 2023 was HK$1,493,714,000, a decrease of 7.9% compared to HK$1,622,117,000 in the same period of 2022[60]. - Profit attributable to equity owners was HKD 30,269,000, down from HKD 58,381,000 in the previous year, reflecting a significant decline[136]. - The net profit margin decreased to 1.5% from 2.8% year-on-year[188]. Revenue and Segment Performance - The Group's Hong Kong segment reported a segment profit of HK$46,862,000, while the Mainland China and Japan segments reported profits of HK$15,890,000 and HK$3,741,000 respectively[15]. - The Group recognized revenue from contracts with customers amounting to HK$42,715,000 from Mainland China, an increase from HK$26,804,000 in the previous year[24]. - The Group's total segment results amounted to HK$66,493,000, indicating resilience in profitability amidst challenging market conditions[15]. - Revenue from the Hong Kong market was HKD 914,183,000, accounting for 47% of total revenue, while revenue from the domestic market was HKD 356,972,000, representing 18% of total revenue[136]. - The Group's consolidated revenue for the six months ended September 30, 2023, was HKD 1,954,785,000, a decrease of 7.5% compared to HKD 2,112,609,000 in the same period last year[136]. Cost and Expenses - The Group's depreciation and amortization expenses totaled HK$38,700,000, reflecting ongoing investments in property, plant, and equipment[15]. - The cost of inventories sold was HK$1,493,714,000, reflecting a reduction from HK$1,622,117,000, which indicates a 7.9% decrease year-over-year[60]. - The write-down of slow-moving inventories amounted to HK$1,271,000, indicating ongoing inventory management efforts[15]. - The Group's finance costs for the six months ended September 30, 2023, amount to HK$22,483,000, compared to HK$11,285,000 in the previous year[49]. Taxation - The Group's total tax charge for the period is HK$10,021,000, compared to a tax credit of HK$14,081,000 in the previous year[55]. - Current tax charge for the period in Hong Kong is HK$8,134,000, down from HK$12,300,000 in the previous year[55]. - The Group's estimated taxable profits are subject to a tax rate of 16.5% in Hong Kong, consistent with the previous year[54]. - The Group's deferred tax for the period is a credit of HK$1,620,000, compared to a credit of HK$1,370,000 in the previous year[55]. Inventory and Receivables - Trade receivables as of 30 September 2023 totaled HK$286,778,000, a decrease from HK$312,370,000 as of 31 March 2023, indicating an 8.2% reduction[77]. - The impairment of trade receivables was HK$526,000 for the period, compared to HK$72,000 in the previous year, showing a significant increase in impairment[60]. - Inventory turnover days improved to 40 days from 42 days, while trade receivables turnover days increased slightly to 62 days from 61 days[188]. Dividends and Shareholder Information - The interim dividend declared for the six months ended 30 September 2023 was HK3.0 cents per ordinary share, consistent with the previous year[67]. - The Group declared an interim dividend of HK3.0 cents per ordinary share for the six months ended September 30, 2023, consistent with the previous year[108]. - Approximately 19.32% of the Company's total issued shares are held by Special Access Limited, owned by Mr. Tai Tak Fung, Stephen, and his spouse[199]. - The Company has a significant interest in controlled corporations, with 259,478,000 shares representing 67.53% of the issued shares[196]. Market Expansion and Strategy - The Group has plans for market expansion and new product development, although specific details were not disclosed in the report[10]. - The Group aims to expand its market presence in Mainland China and Japan, leveraging the acquisition of Miyata to create a unique food sales platform[146]. - The Group's strategy includes introducing high-quality Japanese candy and snack products to the markets of Hong Kong and Mainland China[146]. - The Group plans to utilize Miyata's extensive snack and confectionery supply and distribution networks in Japan to expand its business opportunities in the Japanese market[184]. - The Group is confident in its development prospects in the Mainland, targeting the Guangdong-Hong Kong-Macao Greater Bay Area with a population of over 80 million, which shares similar food cultures with Hong Kong[155]. Operational Efficiency - The Group's cash flow management remains strong, with trade payables typically settled within 30 to 60 days, contributing to operational efficiency[7]. - The Group's catering and retail businesses have seen significant growth post-pandemic, with popular restaurants in both Mainland China and Hong Kong[168]. - The Group operates 17 food processing plants in Hong Kong and Mainland China, enhancing its production and sales strategy[121]. - The Group operates 17 food processing factories in Mainland China and Hong Kong, enhancing its position in the specialty food industry[143]. Certifications and Quality Standards - The Group has obtained multiple certifications, including "HACCP" and "ISO 9001", ensuring its food products meet international quality standards[167]. - The Group has received various recognitions, including "QTS Merchant" for "Okashi Land" and being named one of the Top Favourite Brands (Snacks) by Wellcome Supermarket[149]. Financial Position and Gearing - As of September 30, 2023, the Group held cash and cash equivalents of HK$591,092,000 and had banking facilities of HK$2,715,755,000, with 35% utilized[185]. - The Group's gearing ratio was 78% as of September 30, 2023, indicating the proportion of bank borrowings to equity attributable to equity holders[185]. - The Group pledged land and buildings valued at approximately HK$76,611,767 and investment properties valued at approximately HK$16,401,200 to secure banking facilities[188]. Employee Information - The total number of employees as of 30 September 2023 was approximately 2,800, with remuneration packages structured based on market terms and individual qualifications[192]. Foreign Exchange and Hedging - The Group does not currently maintain a foreign currency hedging policy, monitoring foreign exchange positions to minimize impacts from currency fluctuations[192]. - The Group's foreign exchange exposure mainly arises from transactions in Japanese yen and Renminbi, which may impact operating results[192].
四洲集团(00374) - 2024 - 中期财报