On November 28, GLONGHUI (02138.HK) announced interim results. For the six months ended September 30, 2024, the Group recorded revenue and sales of HK$2.0629 billion and HK$2.0844 billion respectively, down 2.8% and 4.4% year-on-year respectively. The slight decline in revenue and sales is due to a decrease in the contributions of the Medical Division, Aesthetic Medicine, Beauty and Wellness Division. The relevant segments are related services that can be selected by oneself, affected by unfavorable market conditions and cross-border consumption trends among Hong Kong residents in Shenzhen, and offset the increase in the contribution of the veterinary and other service segments.
Despite a slight decline in revenue, the Group's net profit after tax increased 88.1% year over year to HK$40.3 million during the reporting period, while profit attributable to the company's equity shareholders increased 112.0% year over year to HK$14.1 million. The main reasons for this increase are (i) the improved operating efficiency of our newly established service points compared to the previous financial years ending March 31, 2024 and March 31, 2023; (ii) cost optimization in headquarters rent and staff expenses; and (iii) a reduction in net interest expenses (i.e. interest expenses minus interest income).
