理文化工(00746) - 2023 - 中期财报

Financial Performance - For the six months ended 30 June 2023, the Group's revenue was HK$1,996 million, down 38.6$3,251 million in the same period last year, while net profit decreased by 88.3% to HK$105 million from HK$891 million[8]. - The Group's gross profit margin was 22.1%, a decrease of 22.2 percentage points compared to the previous year, and the net profit margin was 5.2%, down 22.2 percentage points year-on-year[9]. - Gross profit for the period was HK$440,984, down 69.5$1,441,404 in the previous year[81]. - Profit before taxation decreased to HK$130,510, a decline of 87.5$1,047,296 in the same period last year[81]. - The total comprehensive income for the period was HK$102,464, compared to HK$661,950 in the same period last year[81]. - The Group's profit for the period was HK$104,611,000, a significant decrease from HK$891,329,000 in the same period of 2022[168]. Cash Flow and Debt - As of 30 June 2023, the Group's bank balances and cash amounted to HK$165 million, down from HK$422 million as of 31 December 2022, with net debt increasing to HK$546 million from HK$322 million[17]. - The net debt to equity ratio as of 30 June 2023 was 9.76%, compared to 5.72% as of 31 December 2022[18]. - For the six months ended June 30, 2023, net cash from operating activities was HK$271,082, a decrease of 69.3$881,817 for the same period in 2022[110]. - The net decrease in cash and cash equivalents was HK$252,777, compared to a decrease of HK$69,072 in the same period of 2022[110]. - Bank borrowings increased to HK$565,256 from HK$523,156, marking an increase of about 8.1%[97]. Revenue Sources - The revenue from the manufacture and sale of chemical products was HK$1,938,347, representing a decline of 39.9$3,224,035 in the previous year[120]. - The Group recorded revenue of approximately HK$58 million from property operations, with 39 residential units sold and delivered during the period[13]. - The Group's property segment generated revenue of HK$57,789,000, compared to HK$26,723,000 in the prior year, showing an increase of about 116.5$0.05 per share, down from HK$0.38 per share in the previous year[150]. - The interim dividend declared is HK5 cents per share for the six months ended June 30, 2023, a significant decrease from HK38 cents per share in 2022[181]. Research and Development - Research and development costs for the six months ended 30 June 2023 were approximately HK$72 million, a decrease of about HK$48 million from HK$120 million in the same period last year[15]. - The Group continues to strengthen its existing business foundation while investing in R&D for new specialty chemical products to create future competitive advantages[65]. Operational Efficiency and Sustainability - The Group continues to focus on energy efficiency and water conservation programs to reduce carbon emissions and achieve sustainable development[10]. - The Group is committed to enhancing energy efficiency and water conservation to reduce carbon emissions during factory operations, aiming for sustainable development while providing ideal returns to shareholders[66]. Corporate Governance - The Company has established a Remuneration Committee comprising independent non-executive directors to oversee remuneration policies[35]. - The Company has complied with the corporate governance code as per the listing rules during the reporting period[31]. Employee and Compensation - The Group's employee count was approximately 2,150 as of 30 June 2023, with competitive compensation and internal training programs in place[19]. - Total staff costs amounted to HK$177,464,000, down from HK$204,548,000 in the previous year, reflecting a reduction of approximately 13.2%[165]. Inventory and Receivables - The Group's raw materials and consumables inventory was HK$481,341,000 as of June 30, 2023, down from HK$521,950,000 as of December 31, 2022, indicating a decrease of about 7.8%[186]. - The average credit period for trade purchases is between 7 to 45 days, with trade receivables at amortised cost amounting to HK$148,302,000 as of June 30, 2023[193]. Share Options - The share option scheme aims to reward participants contributing to the Group and enhance the value of the Company and its shares for shareholders[200]. - 82,500,000 options granted on July 14, 2017, will vest on April 1, 2022, and can be exercised if the Group's net profit for the year ending December 31, 2021, equals or exceeds HK$324,292,500 (150% of HK$216,195,000)[200].