Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 7,743,999, representing a 100% increase compared to HKD 3,869,412 for the same period in 2022[2]. - Gross profit increased by 70% to HKD 745,345 from HKD 439,618 year-on-year[2]. - Profit for the period attributable to equity holders of the company rose by 109% to HKD 456,952, compared to HKD 218,978 in the previous year[2]. - The company reported a pre-tax profit of HKD 625,673, which is a 69% increase from HKD 369,208 in the same period last year[2]. - Basic and diluted earnings per share increased to HKD 0.66 from HKD 0.32, reflecting a significant growth in profitability[2]. - The group reported customer contract revenue of HKD 7,743,999 thousand for the six months ended June 30, 2023, a significant increase from HKD 3,869,412 thousand in the same period of 2022, representing an increase of approximately 100%[15]. - Revenue from leaf products sales reached HKD 7,469,818 thousand, up from HKD 3,824,917 thousand year-on-year, indicating an increase of about 95%[15]. - The group generated revenue of HKD 6,607,111 thousand from mainland China, a substantial rise from HKD 2,616,959 thousand in the previous year, reflecting an increase of approximately 152%[16]. - The gross profit for the reporting segments totaled HKD 745,345 thousand, with a pre-tax profit of HKD 625,673 thousand for the six months ended June 30, 2023[19]. - The net profit for the six months ended June 30, 2023, was HKD 277,746,000, reflecting a rise from HKD 218,978,000 in the same period of the previous year, which is an increase of about 26.8%[21][27]. Financial Position - Total assets as of June 30, 2023, amounted to HKD 5,761,811, a slight decrease from HKD 5,900,080 at the end of 2022[6]. - Net assets increased to HKD 2,616,489 from HKD 2,237,590 at the end of 2022, indicating a strong financial position[9]. - The group’s total assets for the reporting segments amounted to HKD 6,254,002 thousand, while total liabilities were HKD 3,637,513 thousand as of June 30, 2023[19]. - The company reported a total asset value of HKD 6,370,521,000 as of June 30, 2023, compared to HKD 5,541,491,000 as of December 31, 2022, showing growth in asset base[21]. - The total liabilities as of June 30, 2023, were HKD 4,132,931,000, compared to HKD 4,132,931,000 as of December 31, 2022, indicating stability in the company's financial structure[22]. - The capital debt ratio improved to 0.89 as of June 30, 2023, from 0.94 at the end of 2022[50]. Expenses and Costs - The company’s financing costs surged by 140% to HKD 72,365 from HKD 30,125, highlighting increased borrowing costs[2]. - Administrative and other operating expenses rose by 29% to HKD 76,978 compared to HKD 59,898 in the previous year[2]. - The company incurred financing costs of HKD 72,365,000 for the six months ended June 30, 2023, compared to HKD 30,125,000 for the same period in 2022, reflecting an increase in financing expenses[23]. - Financing costs surged by 140% to HKD 72.4 million, primarily due to increased bank loan interest rates[46]. Other Income - Other income net increased by 51% to HKD 29,671 from HKD 19,613, contributing positively to overall financial performance[2]. - The net other income for the six months ended June 30, 2023, was HKD 29,671,000, compared to HKD 19,613,000 for the same period in 2022, indicating an increase in other income sources[22]. Market and Product Performance - The new tobacco products segment generated revenue of HKD 33,895 thousand, compared to HKD 26,729 thousand in the previous year, marking an increase of approximately 27%[15]. - The group’s revenue from the export of cigarettes was HKD 240,131 thousand, a significant increase from HKD 17,568 thousand in the same period last year, representing an increase of approximately 1265%[15]. - The group’s operations in Brazil generated revenue of HKD 275,459 thousand, reflecting the ongoing expansion in that market[19]. - The export volume of cigarettes surged to 562,943 thousand sticks, an increase of 497,969 thousand sticks or 766% year-on-year[38]. - Revenue from cigarette exports reached HKD 240.1 million, an increase of HKD 222.6 million or 1,267% year-on-year[38]. Strategic Initiatives - The company plans to continue its dual-driven development strategy focusing on both external and internal growth, including potential acquisitions[41]. - The company aims to optimize its supply chain and expand into new markets to enhance business development opportunities[42]. IPO and Fund Utilization - The net proceeds from the IPO amounted to approximately HKD 904 million, with a net price of about HKD 4.72 per share[55]. - 45% of the net proceeds, approximately HKD 406.8 million, is allocated for investments and acquisitions to enhance the group's business[56]. - 20% of the net proceeds, approximately HKD 180.8 million, is designated to support the ongoing development of the group[56]. - Another 20% of the net proceeds, also approximately HKD 180.8 million, is intended for strategic collaborations with other international tobacco companies[56]. - 10% of the net proceeds, amounting to HKD 90.4 million, is allocated for general working capital[56]. - 5% of the net proceeds, approximately HKD 45.2 million, is aimed at improving procurement and sales resource management[56]. - As of June 30, 2023, a total of HKD 459.4 million has been utilized from the net proceeds[56]. - The remaining funds are expected to be used by June 30, 2025, according to the group's best estimates[56]. Corporate Governance - The company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2023[60]. - The company is ultimately controlled by China National Tobacco Corporation[63]. - The company was listed on the Hong Kong Stock Exchange on June 12, 2019[63]. - The company operates subsidiaries including China Tobacco International Brazil Ltd., established on June 6, 2002[63]. - The board of directors includes both executive and independent non-executive members[65]. - The company adheres to the Corporate Governance Code as per the Hong Kong Listing Rules[63]. - The company has established various committees including the Nomination Committee and the Remuneration Committee[64]. - The company’s shares are classified as ordinary shares[64]. - The company operates in multiple regions including Hong Kong and Macau[63]. - The company uses multiple currencies including Hong Kong dollars, US dollars, and Brazilian reais[64]. - The company is subject to the Listing Rules of the Hong Kong Stock Exchange[63].
中烟香港(06055) - 2023 - 中期业绩