China Wantian Holdings (1854) H1 2024 earnings summary

Executive summary

• Revenue surged 95.6% year-over-year to HK$251.8 million for the six months ended 30 June 2024, driven by food supply expansion in the Greater Bay Area and Hong Kong.

• Gross profit increased to HK$33.8 million, but gross margin declined to 13.4% from 16.1% due to a shift in product mix and competitive pressures.

• Loss for the period widened slightly to HK$17.2 million, impacted by higher selling and administrative expenses, including share-based payments.

• The Group reallocated unutilised rights issue proceeds to expand its fresh food supply business, pausing plans for a live cattle breeding site.

• No interim dividend was declared for the period.

Financial highlights

• Revenue: HK$251.8 million (up from HK$128.7 million year-over-year).

• Gross profit: HK$33.8 million (up from HK$20.7 million year-over-year).

• Gross margin: 13.4% (down from 16.1% year-over-year).

• Loss for the period: HK$17.2 million (vs. HK$16.3 million year-over-year).

• Basic and diluted loss per share: HK0.88 cents (vs. HK0.93 cents year-over-year).

Outlook and guidance

• The Group aims to leverage the Greater Bay Area's growth, especially after the Shenzhen-Zhongshan Link opening, to expand food supply, logistics, and distribution.

• Focus remains on expanding fresh food supply, catering, and environmental protection services, with ongoing collaborations with state-owned enterprises and sustainable development.