Financial Performance - For the six months ended June 30, 2023, the unaudited consolidated loss attributable to shareholders was HKD 21,653,000, an increase of 14.3% compared to a loss of HKD 18,943,000 in the same period last year[8]. - Total revenue for the period was HKD 35,445,000, down 17.5% from HKD 42,989,000 in the same period last year[11]. - The gross loss for the period was HKD 4,576,000, compared to a gross loss of HKD 3,456,000 in the previous year, indicating a worsening of performance[30]. - The pre-tax loss increased to HKD 21,810,000 from HKD 18,943,000 year-on-year, reflecting ongoing financial challenges[30]. - The total comprehensive loss for the period was HKD 24,900,000, slightly higher than HKD 24,829,000 in the previous year[32]. - The company reported a net loss of HKD 21,653,000 for the six months ended June 30, 2023, compared to a net loss of HKD 18,943,000 for the same period in 2022, representing a 9.0% increase in losses[35]. - Operating cash flow for the six months ended June 30, 2023, was a net outflow of HKD 13,480,000, compared to a net outflow of HKD 8,736,000 in the prior year, reflecting a 54.3% increase in cash outflow[37]. - Total other income and gains for the six months ended June 30, 2023, was HKD 265,000, a decrease of 73% from HKD 981,000 in the same period of 2022[58]. Assets and Liabilities - The group's unaudited net asset value as of June 30, 2023, was HKD 95,113,000, a decrease of HKD 24,900,000 from December 31, 2022, and a decrease of HKD 54,594,000 from June 30, 2022[8]. - As of June 30, 2023, total assets decreased to HKD 123,900,000 from HKD 119,909,000 as of December 31, 2022, reflecting a 3.3% increase[34]. - The total liabilities of the group increased to HKD 29,979,000 as of June 30, 2023, compared to HKD 24,054,000 at the end of 2022[69]. - The company's current liabilities increased to HKD 75,247,000 from HKD 49,467,000, representing a significant increase of 52.1%[34]. - The group's interest-bearing loans totaled HKD 21,697,000 as of June 30, 2023, with an interest rate ranging from 5.5% to 5.9%[16]. - The company's financial expenses rose to HKD 228,000 from HKD 156,000, indicating a 46.2% increase[37]. Inventory and Production - The total production of cowhide leather was 2,168,000 square feet, an increase of 27.5% from 1,700,000 square feet in the same period last year[10]. - The sales volume of cowhide leather decreased by 12.6% to 2,408,000 square feet from 2,756,000 square feet in the same period last year[11]. - The group's inventory as of June 30, 2023, was HKD 78,511,000, an increase of 7.5% from HKD 73,028,000 as of December 31, 2022[13]. - The company recorded a depreciation expense of HKD 1,628,000 for property, plant, and equipment, which is an increase from HKD 955,000 in the previous year, marking a 70.5% rise[37]. Employee and Management - The group had 308 employees as of June 30, 2023, down from 327 as of December 31, 2022, indicating a reduction in workforce[22]. - Total remuneration paid to key management personnel for the six months ended June 30, 2023, was HKD 525,000, a decrease from HKD 778,000 in the same period of 2022[84]. - The company’s short-term employee benefits for the six months ended June 30, 2023, were HKD 366,000, down from HKD 588,000 in the previous year[84]. Corporate Governance and Compliance - The company has complied with the corporate governance code as of June 30, 2023, and has appointed a new company secretary effective January 18, 2023[95]. - The interim financial information has been reviewed but not audited, ensuring that the financial data is presented accurately[42]. - The interim financial statements were approved by the board of directors on August 21, 2023, indicating timely governance and oversight[39]. Future Plans and Strategies - The company aims to achieve sustainable growth by diversifying revenue sources and exploring new business opportunities in traditional manufacturing[23]. - The company plans to implement effective measures to improve operational performance and control costs in the second half of 2023[23]. - The company plans to continue focusing on operational efficiency and cost management strategies to mitigate losses in the upcoming quarters[36]. Revenue Sources - The revenue from the sale of processed leather for the six months ended June 30, 2023, was HKD 35,445,000, a decrease of 17.5% compared to HKD 42,989,000 for the same period in 2022[56]. - Major customer A contributed HKD 5,478,000 to the total revenue for the six months ended June 30, 2023, while customer B and C did not exceed 10% of total revenue during the same period[55]. - The company reported that over 90% of its revenue, performance, and assets are related to the processing and sales of leather semi-finished and finished products in China, with no independent segment analysis presented[54].
南粤控股(01058) - 2023 - 中期财报