Financial Performance - For the six months ended June 30, 2023, the company recorded an unaudited profit attributable to shareholders of approximately HKD 37 million, a decrease of 43% compared to the same period last year [2]. - The overall profit in the first half of 2023 was significantly pressured by high financial costs due to interest rate hikes, with a 171% increase in financial costs compared to the previous year [3]. - The profit for the period was HKD 36.9 million, down from HKD 65.1 million in the previous year [22]. - The company's profit for the period was HKD 36,912 thousand, down from HKD 65,118 thousand in the previous year, indicating a decline of about 43.3% [33]. - Basic earnings per share for the period were HKD 0.38, compared to HKD 0.68 in the same period last year [22]. - Cash generated from operating activities for the six months ended June 30, 2023, was HKD 80,497 thousand, compared to HKD 214,018 thousand in the same period of 2022, reflecting a decrease of approximately 62.4% [29]. Revenue and Business Segments - Revenue for the six months ended June 30, 2023, was HKD 2,579.1 million, compared to HKD 2,540.6 million for the same period in 2022, reflecting a slight increase [22]. - Total revenue for the six months ended June 30, 2023, was HKD 2,579,128 thousand, a slight increase from HKD 2,540,582 thousand in the same period of 2022, representing a growth of approximately 1.5% [32]. - The healthcare product business saw a profit increase of 14% compared to the same period last year, with improved labor and supply chain conditions [10]. - The agricultural-related business recorded a profit increase of 32% compared to the previous year, supported by stable demand for salt products and effective pricing strategies [12]. - Agricultural-related business revenue for the six months ended June 30, 2023, was HKD 932,967 thousand, down from HKD 967,190 thousand in 2022, a decrease of about 3.5% [32]. - Human health business revenue increased to HKD 1,560,347 thousand in the first half of 2023, compared to HKD 1,482,653 thousand in the same period of 2022, marking a growth of approximately 5.3% [32]. Dividends and Shareholder Returns - The company announced no interim dividend for the 2023 fiscal year, consistent with the previous year [3]. - The company declared a dividend of HKD 0.008 per share for the year-end 2022, totaling HKD 76,889 thousand, compared to HKD 96,111 thousand for the previous year [28]. - The company did not recommend an interim dividend for the six months ended June 30, 2023, compared to no dividend in 2022 [38]. Assets and Liabilities - As of June 30, 2023, the total assets of the group were approximately HKD 11,049.3 million, with cash and bank deposits amounting to HKD 493.4 million [15]. - The total liabilities of the group were HKD 6,881.9 million, including bank borrowings of HKD 5,421.0 million, primarily used for acquiring overseas businesses [15]. - The net debt to total equity ratio was approximately 54.18% as of June 30, 2023 [15]. - The company reported a total equity of HKD 4,167,356 thousand as of June 30, 2023, compared to HKD 4,155,450 thousand at the end of the previous period, showing a slight increase of approximately 0.3% [28]. - The valuation of investment properties increased to HKD 1,831,407 as of June 30, 2023, from HKD 1,817,665 on January 1, 2023, reflecting a growth of 0.8% [39]. - Total property, plant, and equipment amounted to HKD 3,737,920 as of June 30, 2023, up from HKD 3,663,321 at the beginning of the year, indicating an increase of 2.0% [40]. Research and Development - Research and development expenditures for the period amounted to approximately HKD 70.9 million [18]. - The company is focusing on the development of cancer vaccines and pain relief products, with ongoing clinical trials for the cancer vaccine seviprotimut-L and the pain relief drug Halneuron® [5][6]. - The company is investing in Pharus, Inc. to develop innovative early cancer detection solutions, alongside internal research projects targeting melanoma and prostate cancer [8]. - The company is collaborating with Crystal Technology to develop a new AI-driven cancer vaccine research platform [5]. Corporate Governance - The company has adhered to the corporate governance principles outlined in the Hong Kong Stock Exchange's Listing Rules, ensuring compliance with all code provisions and recommended best practices [48]. - The Audit Committee, led by an independent non-executive director, has reviewed the group's interim performance for the six months ended June 30, 2023 [49]. - The Remuneration Committee consists mainly of independent non-executive directors, ensuring a focus on fair compensation practices [50]. - The Nomination Committee is chaired by an independent non-executive director, emphasizing the importance of independent oversight in board appointments [51]. - The Sustainability Committee includes an executive director and an independent non-executive director, highlighting the company's commitment to sustainable practices [52]. - The company maintains high standards of corporate governance and ethical conduct, regularly reviewing its comprehensive corporate governance policies [48]. Employment and Employee Costs - The total number of full-time employees increased to 1,887, up from 1,829 a year earlier, with total employee costs of approximately HKD 546.7 million, a 6% increase year-on-year [20]. - Employee costs for the six months ended June 30, 2023, amounted to HKD 546.7 million, an increase from HKD 515.8 million in 2022, representing a rise of about 6.3% [34].
长江生命科技(00775) - 2023 - 中期业绩