南顺(香港)2023/24中期报告

CORPORATE INFORMATION Board of Directors KWEK Leng Hai(Chairman)*WONG Cho Fai(Group Managing Director/Chief Executive Officer)**CHEW Seong Aun*WHANG Sun Tze,Ph.D.*LO Kai Yiu, Anthony#HUANG Lester Garson,SBS, JP#HO Yuk Wai, Joan# *****### **Executive director*Non-executive director#Independent non-executive director ***# Board Audit and Risk Management Committee LO Kai Yiu, Anthony(Chairman)HUANG Lester Garson,SBS, JPHO Yuk Wai, Joan Board Remuneration Committee HUANG Lester Garson,SBS, JP (Chairman)KWEK Leng HaiLO Kai Yiu, Anthony Board Nomination Committee KWEK Leng Hai(Chairman)LO Kai Yiu, AnthonyHO Yuk Wai, Joan Chief Financial Officer TSANG Chin Hung, Fanny Company Secretary CHENG Man Ying Place of Incorporation HONG KONG Registered Office 21 Dai Fu Street, Tai Po Industrial Estate,Tai Po, New Territories, Hong Kong 21 Share Registrar and Transfer Office Computershare Hong Kong Investor Services LimitedShops 1712–1716, 17/F, Hopewell Centre,183 Queen’s Road East,Wanchai, Hong Kong 1831717121716 Lam Soon (Hong Kong) Limited Interim Report 2023/2024 The Board of Directors (the “Board”) of Lam Soon (HongKong) Limited (the “Company”) is pleased to present theunaudited consolidated interim results of the Company andits subsidiaries (collectively the “Group”) for the six monthsended 31 December 2023. OVERVIEW Covid-19 The economic recovery of our core markets, MainlandChina and Hong Kong, has been slower than expectedfollowing the lifting of Covid-19 border controls. Consumerconfidence has only been gradually improving, as concernsover geopolitical tensions, global interest rates, and futureeconomic growth continue to weigh on sentiment. Keenmarket competition also posted challenges on our productprices. However, on the positive side, commodity pricesshowed signs of easing as global supply stabilised. Despite these challenges, we remained committed inexecuting the Group’s business initiatives and enhancingthe appeal for our brands, with a particular focus on thepremium segment, which continued to deliver progress.With a constantly improved product portfolio for boththe Food and Home Care segments and a competitivepricing strategy, we ensure our products continue toremain attractive in the fiercely challenging markets. Thishas helped to maintain and, in some cases, increase ourmarket share. As a result, all segments reported an increasein sales volume. In addition to the favorable wheat andoil costs for the period, the management team diligentlymanaged procurement to effectively optimized overall rawmaterial costs and enhanced supply stability, contributingan improved profitability for the first half of the financialyear. SUMMARY OF FINANCIAL RESULTS 2%2,659,000,0001%5.421.9%205%129,000,000 The Group recorded a decline in revenue by 2% toHK$2,659 million comparing to the previous correspondingperiod, due to lower average exchange rate for Renminbi.Excluding such impact, revenue would have improvedmarginally by 1%, mainly attributable to sales volumegrowth. Gross profit margin notably increased by 5.4percentage points to 21.9%, mainly due to favourablewheat cost and oil cost, as well as sales mix improvementin our Flour and Home Care businesses along withimprovement in the performance of our Specialty Fatsbusiness. As a result, the Group’s profit for the periodincreased by 205% to HK$129 million. As at 31 December 2023, the Group’s cash balance was atHK$1,544 million, increased by 6% since previous financialyear end. For yield enhancement of cash-on-hand, theGroup invested in quality fixed income government bondsin Mainland China and equity securities listed in HongKong with total carrying amount of HK$155 million as at 31December 2023. In light of our liquidity and strong financialposition, we will continue to adapt a strategy not only toprotect our business fundamentals but also look for theright opportunities for transformation and growth. 1,544,000,0006%155,000,000 DIVIDENDS The Board had declared an interim dividend of HK$0.13per share totalling approximately HK$32 million for the sixmonths ended 31 December 2023 (six months ended 31December 2022: HK$0.10 per share totalling approximatelyHK$24 million), which will be payable on Wednesday, 20March 2024 to the shareholders whose names appear onthe register of members of the Company on Friday, 8 March2024. 0.1332,000,0000.1024,000,000 BUSINESS REVIEW Food Segment Food segment’s revenue dropped by 3% to HK$2,232million. Stripping off the Renminbi depreciation impact, therevenue increased by 1%. Operating profit of the segmentposted a surge of 408% to HK$126 million as compared tothe previous corresponding period. 3%2,232,000,0001%408%126,000,000 The Group’s Flour and Specialty Fats business navigatedthrough challenges in the first half of the financial yearas soft market demand and intense price competitionprevailed. To achieve our post-pandemic sales volumerecovery, the Group prioritized the growth of the corepremium