Financial Performance - Revenue for the six months ended June 30, 2023, was RMB 1,535,704 thousand, a decrease of 16.9% compared to RMB 1,847,152 thousand for the same period in 2022[2]. - Gross profit for the same period was RMB 706,732 thousand, down 26.9% from RMB 967,029 thousand, resulting in a gross margin of 46.0% compared to 52.4% in 2022[2]. - Adjusted profit for the period attributable to equity holders was RMB 200,353 thousand, a significant increase of 186.0% from a loss of RMB 233,031 thousand in the previous year[4]. - Basic and diluted earnings per share for the period were RMB 4.77, compared to a loss of RMB 9.71 in the same period last year, reflecting a 149.1% increase[4]. - Operating profit for the period was RMB 260,740 thousand, a turnaround from an operating loss of RMB 141,776 thousand in the previous year[4]. - The net profit for the period was RMB 200,353 thousand, a significant recovery from a net loss of RMB 233,031 thousand in the previous year[16][21]. - The total liabilities decreased to RMB 1,544,783 thousand from RMB 2,061,584 thousand, reflecting a reduction of approximately 25%[18]. - The company reported a gross margin improvement in the flavor and food ingredients segment, with net segment revenue of RMB 680,934 thousand for the current period[17]. - The company recognized an impairment loss on goodwill of RMB 614,331 thousand for the six months ended June 30, 2023[2]. - The total expenses for the six months ended June 30, 2023, included depreciation of RMB 92,992,000, down from RMB 98,456,000 in the same period of 2022[26]. Dividends and Shareholder Returns - The company plans to declare an interim dividend of HKD 1.60 per share and a special dividend of HKD 1.90 per share[2]. - The interim dividend proposed for the six months ended June 30, 2023, is RMB 104,227,000, compared to RMB 95,840,000 for the same period in 2022[33]. - The company declared an interim cash dividend of HKD 0.016 per share and a special dividend of HKD 0.019 per share for the six months ended June 30, 2023[119]. Assets and Liabilities - Total assets as of June 30, 2023, were RMB 16,084,302 thousand, a decrease from RMB 16,619,022 thousand as of December 31, 2022[6]. - Cash and bank deposits decreased to RMB 3,384,516 thousand from RMB 4,747,978 thousand, indicating a reduction in liquidity[6]. - The total equity and liabilities as of June 30, 2023, stood at RMB 16,084,302 thousand, down from RMB 16,619,022 thousand at the end of 2022[18]. - The company reported a decrease in trade receivables to RMB 664,092,000 as of June 30, 2023, down from RMB 1,010,485,000 as of December 31, 2022[35]. - The total liabilities for trade and other payables were RMB 574,831,000 as of June 30, 2023, down from RMB 734,298,000 as of December 31, 2022[42]. - Total loans as of June 30, 2023, were RMB 466,850,000, down 31% from RMB 677,700,000 as of December 31, 2022[40]. Research and Development - The company plans to continue its focus on research and development in the flavor and food ingredients sector to drive future growth[13]. - Research and development expenses for the six months ended June 30, 2023, amounted to RMB 116,321,000, an increase from RMB 110,663,000 in the same period of 2022[26]. - The group invested approximately RMB 116 million in R&D, representing 7.6% of sales revenue, an increase of 1.6 percentage points compared to the first half of 2022[63]. Market and Industry Trends - The tobacco industry in China saw a production increase of 1.7% year-on-year, reaching 26.932 million boxes in the reporting period[45]. - The group is actively expanding its overseas market presence, particularly in Malaysia, Thailand, and Indonesia, with products receiving local regulatory approval[52]. - The group is shifting its focus in the personal care and oral care sectors due to decreased demand for incense and disinfection products post-pandemic[53]. - The group plans to develop overseas clients in the tobacco raw materials segment as domestic demand has saturated[67]. - In the flavor and food ingredients sector, the group aims to enhance product and service value by responding to market demand for healthy and natural products[67]. Corporate Governance and Compliance - The company has complied with the corporate governance code, except for certain provisions due to the circumstances surrounding a director's monitoring[117]. - The company is monitoring the ongoing arbitration and will provide updates as necessary[116]. - The audit committee, composed of independent non-executive directors, has reviewed and approved the unaudited interim financial information for the six months ended June 30, 2023[121]. - The company provided documents for an investigation by the Hong Kong Independent Commission Against Corruption related to a director's arrest[115]. Future Outlook - The group anticipates a cautious outlook for business in the second half of 2023, focusing on macro policy opportunities to stimulate consumer demand[67]. - The management expects continued growth in the restaurant industry, focusing on enhancing competitiveness in R&D, products, channels, and sales to increase market share[67]. - The group is committed to optimizing the supply chain and reducing operational costs to mitigate adverse impacts from external environments[67].
华宝国际(00336) - 2023 - 中期业绩