南顺(香港)2024/25中期报告

CORPORATE INFORMATION Board of Directors KWEK Leng Hai(Chairman)*CHIU Chao Hsiang, James(Chief Executive Officer)**Christian K. NOTHHAFT*WHANG Sun Tze,Ph.D.*Lester G. HUANG,SBS, JP#HO Yuk Wai, Joan#CHEUNG Man Ying# ***Christian K. NOTHHAFT**### ***# *Non-executive director**Executive director#Independent non-executive director Board Audit and Risk Management Committee HO Yuk Wai, Joan(Chairman)Christian K. NOTHHAFTLester G. HUANG,SBS, JP Christian K. NOTHHAFT Board Remuneration Committee Lester G. HUANG,SBS, JP (Chairman)KWEK Leng HaiCHEUNG Man Ying Board Nomination Committee KWEK Leng Hai(Chairman)HO Yuk Wai, JoanCHEUNG Man Ying Chief Financial Officer TSANG Chin Hung, Fanny Company Secretary LAM Hiu Lam 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 2024/25 The Board of Directors (the “Board”) of Lam Soon (HongKong) Limited (the “Company”) would like to present theunaudited consolidated interim results of the Company andits subsidiaries (collectively the “Group”) for the six monthsended 31 December 2024 as follows: OVERVIEW As 2024 came to an end, enduring economic challengescontinued to cast a shadow over the global stage. Thelikelihood of a slowdown in interest rate cuts and escalatinggeopolitical tensions have influenced global economicgrowth. China, too, saw divergent growth patterns in 2024.Consumer spending remained cautious as consumptionbehaviour continually evolved in response to intense pricingcompetition in various sectors, including the segments inwhich the Group operates. Amidst these market headwinds, and as we diligentlyexecute cost-saving programs across the board, both theGroup's Food and Home Care segments have focused onenhancing our products and portfolio through targeted R&Dinitiatives. This has enabled us to adapt to market dynamicsefficiently and to strengthen our presence in the coremarkets, while exploring new opportunities. Additionally,we have remained steadfast in our strategy to solidifyour position in the premium market segment to ensuredifferentiation for pricing resilience and sustaining ourmargins. Alongside a favourable commodity pricing trendsand stable supply during the period, the Group has, as aresult, achieved profit growth for the first half of FY2024/25,and maintained strong cash flow. SUMMARY OF FINANCIAL RESULTS The Group recorded a marginal increase in revenueby 1% to HK$2,681 million compared to the previouscorresponding period. Gross profit margin continued toimprove by 1.7% to 23.6%, mainly due to favourable trendin wheat and oil prices, in addition to sales mix optimisation,and production cost efficiency. As a result of the abovefactors coupled with prudent cost management, theGroup’s profit for the period increased by 46% to HK$188million. 1%2,681,000,0001.7%23.6%46%188,000,000 1,896,000,00011% As at 31 December 2024, the Group’s cash balance wasat HK$1,896 million, representing an increase of 11% ascompared to the previous financial year end. In light of ourliquidity and strong financial position, we will continue to notonly protect our business fundamentals but also look for theright opportunities for transformation and growth. INTERIM DIVIDEND The Board had declared an interim dividend of HK$0.15per share amounting to approximately HK$37 million forthe financial year ending 30 June 2025 (2023/24 interimdividend: HK$0.13 per share amounting to approximatelyHK$32 million), which will be payable on Wednesday, 19March 2025 to the shareholders whose names appear onthe register of members of the Company on Friday, 7 March2025. 0.1537,000,0000.1332,000,000 BUSINESS REVIEW Food Segment Food segment’s revenue declined by 1% to HK$2,212million whereas its operating profit increased by 54% toHK$194 million. 1%2,212,000,00054%194,000,000 During the first half of the financial year, the Flour divisionexperienced a challenging market landscape, markedby heightened price competition and reduced demandfrom institutional customers across Mainland China andHong Kong. Despite various pressures, we have focusedon optimising gross profit by tactically executing prudentcommodity procurement strategies, while stepping upefforts to safeguard demands from key customers andextend regional distribution networks. Favourable impactfrom the commodity market has helped to protect profitmargins during the period. Together with an enhancedpremium product mix strategy and disciplined cost-savingmeasures, the division has witnessed a significant year-on-year profit improvement for the six months ended 31December 2024. The premium bakery segment maintained stable growthd u r i n g t h e p e r i o d , d r i v e n b y a r o b u s t p e r f o r m a