Tsit Wing announced 2021 interim results

Revenue and net profit increased by 24.7% and 33% respectively

Highlights

• Revenue increased by 24.7% to HK$361.3 million
• Gross profit increased by 23.0% to HK$145.9 million
• Profit for the period attributable to owners of the parent increased by 33.0% to HK$38.3 million
• Plans to focus on growing the online sales in the second half of 2021 and expand the product penetration to more online retail platforms
• Intends to increase the coverage of the distribution network in the Greater Bay Area, Shanghai and certain other affluent or upwardly mobile cities in the second half of 2021

Financial Highlights

HONG KONG, Aug. 19, 2021 /PRNewswire/ -- Tsit Wing International Holdings Limited ("Tsit Wing", together with its subsidiaries, the "Group"; stock code: 2119.HK), an integrated B2B food and beverage solutions provider, announced its interim results for the six months ended 30 June 2021. During the period, the Group recorded a total revenue of HK$361.3 million (2020 corresponding period: HK$289.7 million), representing an increase of 24.7%. Profit for the period attributable to owners of the parent increased by 33.0% to HK$38.3 million (2020 corresponding period: HK$28.8 million).

During the period, basic earnings per share were HK5.32 cents (2020 corresponding period: HK3.83 cents). The Board has proposed the payment of an interim dividend of HK3.19 cents per ordinary share (2020 corresponding period: HK1.58 cents per ordinary share).

Business Review

The Group is a leading integrated B2B coffee and black tea solutions provider in Hong Kong, Macau and Mainland China providing one-stop coffee and tea solutions to commercial customers.

During the period, the Group achieved significant business development because of the strong performance of its beverage segment in Mainland China and diverse customer base in Hong Kong. Revenue from the beverage solutions segment increased by 25.1% to HK$352.9 million (2020 corresponding period: HK$282.2 million). It was attributable to the increase in revenue derived from Mainland China of 71.8% to HK$134.8 million (2020 corresponding period: HK$78.4 million) and increase in revenue derived from Hong Kong of 7.3% to HK$214.2 million (2020 corresponding period: HK$199.5 million). Revenue from the food products segment increased by 12.0% to HK$8.4 million (2020 corresponding period: HK$8.4 million).

Business Prospect

The business environment in Hong Kong remained static and was particularly challenging for hotels and Chinese restaurants whose businesses were materially affected by the COVID-19 pandemic. The Group will continue to diversify the customer base and fortify the business with customers thrived during the pandemic, particularly fast-food and convenience store operators. Besides, as the pandemic has accelerated the shift in consumer preferences towards online retail in Hong Kong, the Group intends to focus on further developing its business-to-customer ("B2C") platform. The Group plans to place a greater focus on growing its online sales in the second half of 2021, and to that end, will expand its product penetration to more online retail platforms

On the other hand, in light of the improved consumer sentiment in Mainland China, the Group intends to increase the coverage of its distribution network in the Greater Bay Area, Shanghai and certain other affluent or upwardly mobile cities in the second half of 2021. In addition, the Group intends to step up its marketing effort and explore partnerships with online marketing agencies in Mainland China that are able to offer services that include brand building and big data analytics.

At the same time, facing rising raw material and shipping costs during the COVID-19 pandemic, the Group will continue to strive to closely monitor its commodity costs and evaluate appropriate measures with prudent management, in order to consolidate the Group's market position.

About Tsit Wing International Holdings Limited

Tsit Wing is a leading integrated B2B food and beverage solutions provider in Hong Kong, Macau and the PRC with 89-year heritage. According to research, coffee sold by the Group translates into almost 337.7 million cups of coffee and 403.2 million cups of milk tea per year. Tsit Wing commenced its frozen meat business in Hong Kong and the PRC since 2013 and has been dedicated to developing an integrated food and beverage solutions platform for its customers.