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易纬集团(03893) - 2019 - 中期财报
2019-03-28 08:45
Financial Performance - For the six months ended December 31, 2018, the Group's revenue was approximately HK$70.6 million, an increase of 46.2% compared to approximately HK$48.2 million for the same period in 2017[13]. - The gross profit for the same period was approximately HK$19.9 million, up from approximately HK$13.1 million in the prior year, reflecting a growth of 51.9%[13]. - The unaudited consolidated loss attributable to owners of the Company decreased by approximately HK$7.4 million compared to the six months ended December 31, 2017[13]. - Revenue increased by approximately 46.5% from approximately HK$48.2 million for the six months ended 31 December 2017 to approximately HK$70.6 million for the Period[26]. - Gross profit increased by approximately 51.9% from approximately HK$13.1 million for the six months ended 31 December 2017 to approximately HK$19.9 million for the Period, with a gross profit margin of approximately 28.2%[28]. - Loss before income tax expense decreased to HK$845,000 from HK$8,118,000, indicating an improvement in financial performance[128]. - Loss attributable to owners of the Company for the period was HK$930,000, significantly reduced from HK$8,270,000 in the previous year[128]. - Total comprehensive income for the period attributable to owners of the Company was HK$1,019,000, compared to HK$8,304,000 in the prior period[128]. Revenue Sources - Significant increase in sales of the Group's millwork, furniture, and façade fabrication was noted, with sales for the period reaching approximately HK$59.3 million, compared to approximately HK$32.1 million for the same period in 2017[21]. - Sales of millwork and furniture reached HK$34,345,000, up from HK$29,843,000, while façade fabrication sales surged to HK$24,982,000 from HK$2,295,000[163]. - Income from interior solutions projects decreased to HK$10,395,000 from HK$13,810,000, and design and project consultancy service income fell to HK$857,000 from HK$2,213,000[163]. - The Group's geographical revenue breakdown shows significant growth in Europe, with revenue rising to HK$18,024,000 from HK$2,699,000[157]. - Revenue from the Middle East also saw a substantial increase, reaching HK$11,260,000 compared to HK$1,354,000 in the previous year[157]. Business Strategy and Expansion - The Group is committed to actively searching for potential business opportunities in Europe, particularly in providing millwork and furniture to internationally recognized luxury brands[21]. - The improvement in financial performance was primarily due to the implementation of previously delayed business strategies related to renovations and new shop rollouts for major customers[14]. - The Group has been expanding its business into the People's Republic of China, the United States, Europe, the Middle East, and other Asian countries since 1999[12]. - The Group is actively seeking potential business opportunities in the high-end residential market and aims to expand its interior solutions services[22]. - The management is confident in strengthening the revenue base and enhancing shareholder returns through strategic partnerships and market expansion[23]. Financial Position and Assets - Cash and bank balances amounted to approximately HK$52.5 million as at 31 December 2018, an increase from approximately HK$44.8 million as at 30 June 2018[36]. - The Group had no bank borrowings as of 31 December 2018 and 30 June 2018, resulting in a gearing ratio of nil[39]. - As of December 31, 2018, total assets amounted to HK$68,857,000, a slight increase from HK$68,545,000 as of June 30, 2018[130]. - The company reported a net loss of HK$930,000 for the six months ended December 31, 2018, compared to a loss of HK$8,270,000 for the same period in 2017[132]. - The company's net assets decreased to HK$44,811,000 from HK$45,830,000, indicating a decline in equity[130]. Corporate Governance - The Company has established an Audit Committee comprising three independent non-executive Directors to oversee financial reporting and risk management[124]. - The Company has committed to enhancing its corporate governance practices to ensure compliance with the CG Code[119]. - The Company has adopted the Corporate Governance Code as its own code of corporate governance, recognizing the importance of good corporate governance[109]. - The Board considers that the Company has fully complied with the code provisions of the Corporate Governance Code during the period, except for a minor deviation[110]. Employee and Administrative Expenses - Total employee benefits for the period were approximately HK$12.7 million, an increase from approximately HK$11.9 million for the same period in 2017[53]. - The Group's administrative expenses remained stable at approximately HK$21.1 million for the Period, compared to approximately HK$21.3 million for the six months ended 31 December 2017[29]. - Mr. Lee, the chairman and CEO, voluntarily reduced his monthly salary to HK$232,750 and housing allowance to HK$80,000 effective from October and November 2018 respectively[122]. Share Capital and Dividends - The Group's issued share capital amounted to HK$24,000,000 with 2,400,000,000 ordinary shares as at 31 December 2018[38]. - No interim dividend was declared for the Period[49]. - The Company has not granted any share options up to December 31, 2018, and has no current intention to issue any authorized but unissued share capital[52]. Cash Flow and Receivables - The company generated HK$7,662,000 from operating activities, a significant recovery from a cash outflow of HK$5,258,000 in the previous year[137]. - Trade and other receivables decreased by HK$5,775,000, indicating improved collection efforts[137]. - Trade receivables decreased to HK$6,068,000 as of December 31, 2018, from HK$8,374,000 as of June 30, 2018, representing a decline of about 27.4%[186]. - The company maintains that no provision for impairment is necessary for trade receivables due to minimal credit risk[195].