2023-09-21-港交所-鸿福堂_2023中期报告_48页_3mb

INTERIM REPORT 2023

Company Information

• Location: Cayman Islands
• Company Secretary: Mr. Shiu Kei Louis Woo
• Board of Directors: Notable members including Mr. Shiu Kwok Yan (Chairman), Mr. Siu Wai Kei (CEO), Ms. Shiu Pui Chu (Independent Non-Executive Director).
• Auditor: PwC (Pagn) & Company Limited.

Management Discussion and Analysis (MD&A)

• Business Review:

  • HKD 2.4% revenue decline in the first half of 2023 compared to 2022, primarily due to Hong Kong’s slow economic recovery, high interest rates, inflation, and reduced consumer spending.
  • Retail division revenue dropped by 4.3%, while wholesale increased by 3.8%.
  • Hong Kong’s economic challenges, including subdued consumer demand, impacted revenue and profitability.

• Financial Review:

  • Net loss attributable to owners of HKD 9.6 million in 2023, up from a profit of HKD 8.1 million in 2022.
  • Revenue decreased to HKD 331.7 million (2022: HKD 340 million), while gross profit fell 4.1% to HKD 193.9 million.
  • Cost management included tight promotions and supply chain optimization.

Performance Criteria and Disclosures

• Uses Hong Kong Accounting Standards for financial reporting.
• Key policies include revenue recognition, cost classification, and employee benefits accrual.
• Financial risks include market fluctuations, credit risk, and foreign exchange exposure.

Awards and Environmental, Social, and Governance (ESG)

• Received multiple awards for corporate excellence, including the "Platinum Group - Commerce Sector" award from Hong Kong Green Office.
• ESG initiatives: Reduced plastic use by phasing out plastic utensils; achieved zero waste sent to landfill through biogas and composting.
• Social contribution included supporting COVID aid in Turkey and annual charity campaigns in Hong Kong.

Financial Highlights

• Revenue: HKD 331.7 million (2022: HKD 340 million).
• Net Loss: HKD 9.6 million (2022: Profit of HKD 8.1 million).
• Key Ratios:
  • Capital-to-asset ratio as of June 30, 2023: 0.64 (total debt to equity).
  • Cash and cash equivalents: HKD 90.9 million (2022: HKD 103.9 million).

Forward Strategy

• Focus on health products, brand collaborations, and digital transformation.
• Expand distribution (e.g., e-commerce platforms) and optimize existing retail and wholesale channels.
• Maintain financial flexibility through strategic cost controls and operational efficiency.