Financial Performance - Revenue from external customers for the steel wire segment was HKD 1,234,354, a decrease of 1.5% compared to HKD 1,252,713 in the previous period[10]. - Gross profit increased by 8.4% to HKD 180,106, with a gross margin of 14.6%, up 1.3 percentage points from 13.3%[26]. - Profit for the period was HKD 31,140, representing a 2.9% increase from HKD 30,269 in the prior period[26]. - Basic earnings per share rose by 1.9% to HKD 1.58, compared to HKD 1.55 in the previous period[26]. - The company reported a revenue of HKD 1,235,047,000 for the six months ended June 30, 2023, a decrease of approximately 1.5% compared to HKD 1,253,473,000 in the same period last year[119]. - Net profit for the period rose by 2.9% to HKD 31,140,000, compared to HKD 30,269,000 in the same period last year[119]. - The diluted earnings per share for the six months ended June 30, 2023, was HKD 1.12, compared to HKD 1.00 in the previous year, representing a 12% increase[61]. Cost and Expenses - For the six months ended June 30, 2023, the cost of goods sold was HKD 1,049,770, a decrease of 2.4% from HKD 1,079,688 in 2022[31]. - Employee benefits expenses remained stable at HKD 146,363 compared to HKD 146,409 in the previous year[31]. - The total financial costs for the period were HKD (12,143), significantly improved from HKD (23,475) in the previous year, indicating a reduction of 48.3%[41]. - The income tax expense for the current period was HKD 2,693, compared to HKD 3,674 in the previous year, showing a decrease of 26.8%[49]. - Administrative expenses decreased to HKD 27,572,000 from HKD 29,178,000, with the ratio to revenue improving from 2.3% to 2.2%[130]. - Research and development expenses were reported at HKD 52,192,000, down from HKD 55,770,000 in the previous year[131]. Assets and Liabilities - Net assets as of June 30, 2023, were HKD 1,661,963, reflecting a 0.3% increase from HKD 1,657,743[26]. - The debt ratio decreased to 21.0%, down 0.8 percentage points from 21.8%[26]. - The fair value of investment properties decreased from HKD 55,637,000 to HKD 54,605,000, reflecting a change of approximately 1.85%[65]. - The net carrying amount of property, plant, and equipment decreased from HKD 1,187,280,000 to HKD 1,110,017,000, a reduction of about 6.5%[68]. - Total bank loans increased from HKD 454,552,000 to HKD 547,831,000, an increase of approximately 20.5%[85]. - The total accounts payable decreased from HKD 800,885,000 to HKD 768,629,000, a decrease of about 4.4%[79]. - The net amount of other payables decreased from HKD 204,253,000 to HKD 146,686,000, a reduction of approximately 28%[83]. Shareholder Information - The company had a market capitalization of HKD 340,989,198 as of June 30, 2023[44]. - Fair Union holds 894,349,179 shares, representing 45.37% of the total issued shares, classified as beneficial owner[155]. - Shougang Group holds 979,446,451 shares, representing 49.69% of the total issued shares, classified as controlled corporation[156]. - Bekaert Combustion holds 250,000,000 shares, representing 12.68% of the total issued shares, classified as beneficial owner[155]. - The total number of issued shares increased from 1,898,653,000 to 1,971,380,000 due to the conversion of convertible bonds[96]. Dividends and Capital Management - The company proposed a final dividend of HKD 0.73 cents per share, totaling approximately HKD 14,389,000, to be paid in July 2023[62]. - No interim dividend was declared or proposed for the six months ended June 30, 2023[63]. - The company issued convertible bonds amounting to HKD 150,000,000 with a coupon rate of 4% on February 11, 2019[90]. - The company redeemed HKD 126,000,000 of the convertible bonds that matured in February 2023, resulting in a fair value gain of HKD 3,554,000 for the six months ended June 30, 2023[94]. Operational Highlights - The company aims to develop into a high-quality steel wire manufacturing enterprise with an annual production capacity of over 300,000 tons[32]. - The sales volume of cutting steel wire products rose by 17.5% to 376 tons, compared to 320 tons in the previous year[123]. - Sales volume of steel cord increased by 12.9% to 106,264 tons, up from 94,129 tons year-on-year[123]. - The company plans to expand production capacity by an additional 100,000 tons of steel cord during the "14th Five-Year Plan" period[147]. Governance and Compliance - The company has complied with all principles and provisions of the corporate governance code as of June 30, 2023, except for the separation of roles between the chairman and managing director[165]. - The audit committee consists of three independent non-executive directors, with Mr. Ye Jianmin as the chairman, overseeing financial reporting and risk management[169]. - The independent auditor reviewed the unaudited interim financial information for the six months ending June 30, 2023, in accordance with the relevant auditing standards[169]. Future Outlook - The company is optimistic about the macroeconomic environment improving due to increased infrastructure investment in China, which is expected to drive sales growth in the automotive and tire industries[151]. - The company is committed to reducing carbon emissions through energy-saving measures and the development of low-carbon products[151].
首佳科技(00103) - 2023 - 中期财报