Revenue Performance - The Group recorded a revenue decline of 2% to HK$2,659 million compared to the previous corresponding period, primarily due to a lower average exchange rate for Renminbi[31]. - Excluding the currency impact, revenue would have improved marginally by 1%, mainly driven by sales volume growth[31]. - The Group's revenue decreased by 2% year-on-year to HK$2,659 million, primarily due to the depreciation of the Renminbi; excluding this impact, revenue slightly increased by 1% driven by sales volume growth[33]. - The Food segment's revenue dropped by 3% to HK$2,232 million; however, stripping off the Renminbi depreciation impact, revenue increased by 1%[51]. - Revenue from contracts with customers for the six months ended December 31, 2023, was HK$2,659,166,000, down from HK$2,715,046,000 in 2022, indicating a decrease of about 2.06%[162]. - Revenue from external customers for the six months ended December 31, 2023, was HK$2,659,166,000, a slight decrease from HK$2,715,046,000 in 2022, reflecting a decline of approximately 2%[195]. Profitability - The Group's profit for the period surged by 205% to HK$129 million[31]. - Operating profit for the Food segment surged by 408% to HK$126 million compared to the previous corresponding period[51]. - Profit for the period rose to HK$128,873,000, up 205.5% from HK$42,207,000 in the prior year[126]. - Total comprehensive income for the period was HK$160,822,000, compared to a loss of HK$47,029,000 in the previous year[126]. - The reportable segment profit from operations for the same period was HK$170,809,000, compared to HK$65,545,000 in 2022, indicating a significant increase of 160%[195]. Gross Profit and Margins - Gross profit margin increased by 5.4 percentage points to 21.9%, attributed to favorable wheat and oil costs, as well as an improved sales mix in the Flour and Home Care businesses[31]. - Gross profit increased to HK$582,299,000, representing a significant increase of 29.6% from HK$449,056,000 in the previous year[124]. - The group reported a gross profit margin of approximately 21.9%, up from 16.5% in the previous year[124]. Cash and Liquidity - The cash balance as of December 31, 2023, was HK$1,544 million, a 6% increase from the previous financial year-end[32]. - The group has sufficient resources to meet daily operations and capital expenditure commitments, supported by a strong liquidity ratio[115]. - Banking facilities available to group companies not yet drawn amounted to HK$590 million as of December 31, 2023, compared to HK$553 million on June 30, 2023[86]. - Cash and cash equivalents at December 31, 2023, increased to HK$799,189,000 from HK$659,949,000 in 2022, representing an increase of approximately 20.96%[165]. Strategic Initiatives - The Company implemented strategic pricing methods to balance sales volume and profit amid ongoing price competition in lower-priced markets[20]. - The management team focused on optimizing procurement and production resources to enhance profitability and support new growth initiatives[21]. - The Company plans to strengthen synergies between its two main revenue sources to drive growth in products, sales channels, and customer conversion[20]. - The group plans to allocate more resources to new e-commerce channels and deepen existing channel strategies to enhance market influence and positioning[49]. - The group aims to develop differentiating new products that align with emerging consumer trends to bolster sustainable growth[64]. Market and Segment Performance - Home Care Division revenue grew by 2% to HK$427 million, with operating profit increasing by 9% to HK$44 million[21]. - The Oil division regained momentum in volume growth, supported by effective sales and marketing plans and the launch of a new lower price corn oil product[53]. - The edible oil segment has regained sales growth momentum despite significant pricing pressure, with effective sales and marketing plans during the holiday period contributing to strong sales of the "刀嘜" brand[60]. - The home care segment reported a revenue increase of 2% to HK$427 million and an operating profit increase of 9% to HK$44 million, despite soft market demand and adverse foreign currency effects[65]. Inventory and Receivables - The inventory turnover days improved to 60 days as of December 31, 2023, down from 62 days on June 30, 2023, while trade receivable turnover days increased to 22 days from 21 days[89]. - Trade and other receivables increased to HK$442,038,000 from HK$347,364,000, representing a significant growth of about 27.2%[142]. Employee and Compensation - The Group employed 1,629 employees as of December 31, 2023, with a compensation policy that includes annual salary increments and performance bonuses[137]. - Staff costs for the six months ended December 31, 2023, totaled HK$237,190,000, up from HK$227,650,000 in 2022, reflecting an increase of 1%[195]. Financial Position - As of December 31, 2023, the total equity of the Group was HKD 2,900,444,000, an increase from HKD 2,835,244,000 as of December 31, 2022[129]. - The company's net assets reached HK$2,900,444,000, compared to HK$2,786,313,000, indicating an increase of approximately 4.1%[142]. - Current liabilities rose to HK$672,193,000 from HK$622,024,000, marking an increase of about 8.1%[142]. Accounting and Compliance - The Group's financial report is prepared in accordance with the same accounting policies as the previous year, with specific amendments noted for the current period[147]. - The company has adopted new accounting policies related to income taxes and long service payment liabilities, which may impact future financial reporting[147][152]. - The company has not applied any new standards or interpretations that are not yet effective for the current accounting period, ensuring compliance with HKAS 34[166].
南顺(香港)(00411) - 2024 - 中期财报