China Wantian Holdings (1854) H2 2024 earnings summary

Executive summary

• Revenue surged to HK$788.6 million for the year ended 31 December 2024, up from HK$194.1 million for the nine months ended 31 December 2023, driven by strong growth in food supply and catering services.

• Loss for the year narrowed to HK$42.0 million from HK$45.6 million, aided by a HK$42.4 million gain on disposal of subsidiaries.

• Gross profit increased to HK$51.9 million, but gross margin declined to 6.6% from 14.9% due to a shift in product mix and competitive pressures in food supply.

• The Group expanded its restaurant network and environmental initiatives, leveraging economic recovery and infrastructure developments in the Greater Bay Area.

Financial highlights

• Food supply revenue rose 314.4% year-over-year to HK$750.4 million, accounting for 95.2% of total revenue.

• Catering services revenue grew 207.5% to HK$37.4 million, with the number of restaurants increasing from 10 to 12.

• Environmental protection and technology services contributed HK$0.8 million, stable year-over-year.

• Gross profit margin for food supply dropped to 4.7% (from 13.6%), while catering margin improved to 44.7% (from 34.5%).

• Net finance costs remained stable at HK$1.1 million.

• Impairment losses under expected credit loss model rose to HK$16.3 million from HK$2.1 million.

• Basic loss per share was HK(2.17) cents, compared to HK(2.48) cents.

Outlook and guidance

• The Group plans to leverage national policies supporting domestic demand and green development, aiming for further expansion in food supply, catering, and environmental protection.

• Unutilised proceeds from recent disposals and rights issues will fund new product lines, distribution channels, and business expansion, with full utilisation expected by mid-2025.