南粤控股(01058) - 2024 - 中期财报

Financial Performance - The company's unaudited consolidated loss attributable to shareholders for the six months ended June 30, 2024, was HK$5,999,000, a decrease of 72.3$21,653,000 in the same period last year[4] - The company's gross profit margin improved from -12.1% in the same period last year to 12.7% in the current period, turning from a loss to a profit[5] - Revenue for the first half of 2024 was HK$42.12 million, compared to HK$38.59 million in the same period of 2023, representing a 9.1% increase[20] - Gross profit for the first half of 2024 was HK$5.36 million, a significant improvement from a gross loss of HK$4.67 million in the same period of 2023[20] - Net loss for the first half of 2024 was HK$5.99 million, a substantial reduction from the net loss of HK$21.65 million in the same period of 2023[20] - Basic and diluted loss per share for the first half of 2024 was HK1.12 cents, compared to HK4.02 cents in the same period of 2023[20] - Total comprehensive loss for the first half of 2024 was HK$5.62 million, a significant improvement from the total comprehensive loss of HK$24.90 million in the same period of 2023[22] - The company reported a net loss of HKD 21,653 thousand for the six months ended June 30, 2023, and a further loss of HKD 5,999 thousand for the six months ended June 30, 2024[25] - The company's total comprehensive loss for the six months ended June 30, 2024, was HKD 5,615 thousand[25] - Basic loss per share improved to HKD 0.011 in 2024 from HKD 0.040 in 2023, reflecting a reduced loss of HKD 5,999 thousand compared to HKD 21,653 thousand in the prior year[43] Assets and Liabilities - The unaudited net asset value as of June 30, 2024, was HK$47,296,000, a decrease of HK$5,615,000 from December 31, 2023, and a decrease of HK$47,817,000 from June 30, 2023[4] - Total equity decreased from HKD 120,013 thousand as of January 1, 2023, to HKD 95,113 thousand as of June 30, 2023, and further declined to HKD 47,296 thousand as of June 30, 2024[25] - Net assets as of June 30, 2024, were HK$47.30 million, compared to HK$52.91 million as of December 31, 2023[23] - The company's inventory as of June 30, 2024, was HK$39.61 million, a decrease from HK$50.46 million as of December 31, 2023[23] - Total inventory decreased by 21.5$42,118,000, an increase of 9.2% compared to HK$38,585,000 in the same period last year[6] - Revenue from customer contracts for the six months ended June 30, 2024, was HKD 42,118 thousand, compared to HKD 38,585 thousand in the same period in 2023, representing an increase of 9.2%[36] - Sales of processed leather decreased to HKD 28,606 thousand in 2024 from HKD 35,445 thousand in 2023, a decline of 19.3%[36] - Subcontracted leather processing revenue increased significantly to HKD 13,512 thousand in 2024 from HKD 3,140 thousand in 2023, a growth of 330.3%[36] - Revenue from Customer A accounted for 4,465 thousand HKD in the first six months of 2024, representing over 10% of the company's total revenue[35] - Revenue from Customer B accounted for 5,478 thousand HKD in the first six months of 2023, representing over 10% of the company's total revenue[35] Costs and Expenses - Procurement amount for the six months ended June 30, 2024, was HKD 12,722,000, a 66.4% decrease compared to the same period last year[7] - Capital expenditures for the six months ended June 30, 2024, totaled HKD 415,000, a decrease from HKD 827,000 in the same period last year[12] - Inventory provision reversal for the six months ended June 30, 2024, was HKD 10,451,000, compared to a provision of HKD 2,219,000 in the same period last year[8] - The group reported a pre-tax loss, with cost of goods sold increasing to HKD 47,207 thousand in 2024 from HKD 41,032 thousand in 2023[40] - Finance costs increased to HKD 295 thousand in 2024 from HKD 228 thousand in 2023, primarily due to higher bank loan and discounting expenses[39] - Impairment of trade receivables decreased to HKD 417 thousand in 2024 from HKD 1,200 thousand in 2023, a reduction of 65.3%[38] - Other income and gains, net, amounted to HKD 534 thousand in 2024, up from HKD 355 thousand in 2023, driven by higher sales of scrap materials in mainland China (HKD 900 thousand in 2024 vs. HKD 346 thousand in 2023)[37] - Total remuneration paid to key management personnel decreased to HKD 448,000 for the six months ended June 30, 2024, compared to HKD 525,000 for the same period in 2023[56] Strategic Plans and Future Outlook - The company plans to focus on product innovation, production process reengineering, and increasing outsourcing business to cultivate new competitive advantages in the second half of 2024[16] - The company aims to reduce costs, improve energy efficiency, and enhance management precision to ensure stable operations in a complex economic environment[16] - The company will seek new business opportunities to diversify revenue sources and enhance long-term growth potential[16] Corporate Governance and Compliance - The company has complied with the Corporate Governance Code as set out in Appendix C1 of the Listing Rules, except for the temporary assumption of the Managing Director role by the Chairman during the transition period[64] - All directors of the company have confirmed compliance with the Model Code for Securities Transactions as set out in Appendix C3 of the Listing Rules during the six months ended June 30, 2024[65] - The company's audit committee and independent auditor, Zhonghui Anda CPA Limited, have reviewed the unaudited interim results for the six months ended June 30, 2024[66] - The company has not purchased, sold, or redeemed any of its listed securities on the Hong Kong Stock Exchange during the six months ended June 30, 2024[67] - No directors or senior executives of the company hold any interests or short positions in the company's shares or related securities as of June 30, 2024[59] Shareholding and Ownership - Guangdong Nanyue Group Co., Ltd. holds a 52.00% equity stake in the company through its 100% controlled subsidiary, Guangdong Assets Management (BVI) No.11 Limited[61][62] - Guangdong Yuehai Holdings Group Co., Ltd. holds a 19.34% equity stake in the company through its 100% controlled subsidiary, Yuehai Holdings Group Co., Ltd.[61][62] - The company's total issued ordinary shares as of June 30, 2024, amount to 538,019,000 shares[62] Environmental and Legal Provisions - The company has set aside a provision of approximately HKD 7,918 thousand for environmental violation penalties in mainland China, with no payments made as of June 30, 2024[48] Commitments and Reserves - Commitments for property leasehold improvements and plant and machinery increased to HKD 976,000 as of June 30, 2024, from HKD 269,000 at the end of 2023[55] - The company's property revaluation reserve increased by HKD 583 thousand in 2023 and HKD 807 thousand in 2024[25] - Exchange rate differences from the translation of foreign operations resulted in a loss of HKD 3,830 thousand in 2023 and HKD 423 thousand in 2024[25] Accounting Standards and Financial Reporting - The company adopted all relevant new and revised Hong Kong Financial Reporting Standards (HKFRS) effective from January 1, 2024, with no significant impact on financial statements[30] - Over 90% of the company's revenue, performance, and assets are related to leather semi-finished and finished product processing and sales, as well as subcontracting leather processing in China[34] - The fair value of receivables measured at Level 2 was 2,928 thousand HKD as of June 30, 2024, compared to 4,460 thousand HKD as of December 31, 2023[32] - Trade receivables and bills receivable totaled HKD 27,219 thousand as of June 30, 2024, slightly up from HKD 26,873 thousand at the end of 2023[45]