Financial Performance - The group's revenue for the six months ended June 30, 2023, was HKD 666.3 million, an increase of 13.3% compared to HKD 588.2 million for the same period in 2022[2]. - Gross profit for the first half of 2023 was HKD 173.1 million, up 34.9% from HKD 128.4 million in the first half of 2022[2]. - Net profit for the first half of 2023 was HKD 87.0 million, a significant increase of 281.9% from HKD 22.8 million in the first half of 2022[2]. - Adjusted profit before tax for the group was HKD 96,514,000, compared to HKD 29,437,000 in the previous year, indicating a significant increase of approximately 227.5%[16]. - The company reported a basic and diluted earnings per share of HKD 0.11 for the first half of 2023, compared to HKD 0.03 for the same period in 2022[4]. - The group achieved a profit of HKD 87,047,000 for the period, a substantial increase from HKD 22,795,000 in the previous year, marking a growth of approximately 281.5%[16]. - The company recorded a total tax expense of HKD 9,467,000 for the six months ended June 30, 2023, compared to HKD 6,642,000 in the same period of 2022, representing an increase of about 42.5%[23]. - Basic earnings per share for the six months ended June 30, 2023, increased to 11 HK cents from 3 HK cents for the same period in 2022, representing a growth of 266.67%[24]. - The diluted earnings per share for the six months ended June 30, 2023, remained at 11 HK cents, consistent with the basic earnings per share due to the anti-dilutive effect of share awards in the previous period[26]. Dividends - The board has declared an interim dividend of HKD 0.035 per ordinary share for the first half of 2023, compared to no dividend in the first half of 2022[2]. - The interim dividend declared for the six months ended June 30, 2023, is 3.5 HK cents per share, compared to no dividend for the same period in 2022[27]. Assets and Liabilities - Total current assets as of June 30, 2023, amounted to HKD 938.4 million, an increase from HKD 829.7 million as of December 31, 2022[5]. - Total assets increased to HKD 1,187.8 million as of June 30, 2023, from HKD 1,012.1 million as of December 31, 2022[5]. - Total liabilities as of June 30, 2023, were HKD 801.0 million, compared to HKD 718.9 million as of December 31, 2022[7]. - The total liabilities decreased to HKD 801,017,000 as of June 30, 2023, from HKD 718,957,000 as of December 31, 2022, indicating a reduction of approximately 11.4%[17]. - The company’s cash and cash equivalents stood at approximately HKD 70.5 million as of June 30, 2023, compared to HKD 74.6 million at the end of 2022[52]. - The debt-to-equity ratio improved to 40.8% from 47.6% as of December 31, 2022, due to a higher percentage increase in total equity compared to net debt[52]. Revenue Segmentation - The distribution segment generated revenue of HKD 398,565,000, slightly up from HKD 389,982,000 year-on-year, reflecting a growth of about 0.2%[16]. - The e-commerce segment reported revenue of HKD 275,420,000, down from HKD 296,331,000 in the previous year, showing a decline of approximately 7.0%[16]. - The retail store segment contributed HKD 15,719,000 in revenue, with no prior year comparison available due to the acquisition of a subsidiary[16]. - The company achieved a geographical revenue breakdown with Hong Kong contributing HKD 301,011,000 and mainland China contributing HKD 280,315,000 for the six months ended June 30, 2023[20]. - Revenue from Hong Kong rose by 35.0% to HKD 301.0 million, while revenue from Macau increased by 10.9% to HKD 60.1 million[48]. - Revenue from mainland China decreased by 6.8% to HKD 280.3 million, down from HKD 300.9 million in the previous year[48]. - Other markets, including Singapore, saw a significant revenue increase of 146.5% to HKD 24.9 million[48]. Operational Highlights - The group is primarily engaged in the distribution and retail of health and lifestyle-related products[9]. - The group recognized a gain of HKD 10,000,000 from the sale of a joint venture during the reporting period[16]. - The group’s financial income increased to HKD 140,000 from HKD 3,000 in the previous year, reflecting a significant rise[16]. - The group’s financial costs, excluding lease liabilities, rose to HKD 11,736,000 from HKD 3,785,000, indicating an increase of approximately 209.5%[16]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[20]. - The company plans to enhance its distribution business in Southeast Asia, particularly in Malaysia and Singapore, leveraging successful models from Hong Kong[44]. - The company aims to introduce more overseas popular brands to the Hong Kong, Macau, and China markets, capitalizing on the post-pandemic recovery[45]. Employee and Operational Costs - Employee benefit expenses rose to HKD 30,898,000 for the six months ended June 30, 2023, compared to HKD 27,841,000 in the same period of 2022, reflecting an increase of approximately 7.4%[21]. - The group has a total employee count of 208 as of June 30, 2023, up from 174 a year earlier, with total employee costs amounting to approximately HKD 30.9 million[64]. Strategic Investments and Acquisitions - The company has entered into a sale agreement to sell 51% of Combo Win Asia Limited for a total consideration of 130,000,000 HKD, pending the fulfillment of certain conditions[33]. - The company plans to utilize proceeds from the sale of 51% of Combo Win Asia Limited for further investment in distribution business in Hong Kong, Macau, and Southeast Asia[37]. - The company acquired an additional 12% stake in 康寧行有限公司 for HKD 9.12 million, increasing its total ownership to 61%[40]. - The group completed the acquisition of a 12% stake in 康寧行 for a total consideration of HKD 9,120,000 on May 31, 2023, increasing its ownership to 61%[57]. - The investment in 健倍苗苗 represents 6.02% of its equity, with an investment cost of HKD 52.3 million, and the fair value of this investment as of June 30, 2023, was HKD 70.4 million[58][60]. - The fair value gain from financial assets measured at fair value through profit or loss for the investment in 健倍苗苗 was HKD 19.1 million for the six months ended June 30, 2023[60]. Governance and Compliance - The company has adopted a corporate governance code to enhance shareholder value and accountability, fully complying with the relevant provisions during the review period, except for a specific deviation[68]. - The roles of the Chairman and CEO are not separated, with Mr. Wang Jia Jun holding both positions, which the board believes does not impair the balance of power[68]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the review period, confirming they are prepared in accordance with applicable accounting standards[70]. - The mid-term report will be published on the Hong Kong Stock Exchange and the company's website, containing all information required by listing rules[71].
满贯集团(03390) - 2023 - 中期业绩