Financial Performance - For the first half of 2023, the company's revenue was HKD 409,610,000, an increase of 17.6% compared to HKD 348,434,000 in the same period last year[4] - Gross profit for the first half of 2023 was HKD 67,887,000, up 41.8% from HKD 47,859,000 year-on-year, with a gross profit margin of 16.6% compared to 13.7% in the previous year[4] - The attributable profit for the first half of 2023 was HKD 5,496,000, compared to a loss of HKD 5,686,000 in the same period last year[16] - The operating profit from trading business was HKD 10,248,000, a turnaround from an operating loss of HKD 5,103,000 in the previous year[17] - Revenue for the six months ended June 30, 2023, was HKD 409,610,000, representing a 17.6% increase from HKD 348,434,000 in the same period of 2022[48] - Operating profit for the period was HKD 10,248,000, a significant recovery from an operating loss of HKD 5,103,000 in the previous year[48] - Net profit for the period was HKD 5,487,000, compared to a net loss of HKD 5,804,000 in the same period last year[51] - Total comprehensive income for the period was HKD 771,000, a recovery from a comprehensive loss of HKD 52,843,000 in the previous year[51] Income and Expenses - Other income and gains decreased by 67.5% to HKD 2,405,000 from HKD 7,405,000 in the previous year[6] - The company reported a net financing cost of HKD 5,434,000, an increase of 84.5% from HKD 2,946,000 year-on-year, primarily due to rising market interest rates[12] - The company incurred interest payments of HKD 5,845 thousand, up from HKD 3,532 thousand in the previous year[55] - The company recognized a foreign exchange loss of HKD 4,732,000 during the period, compared to a loss of HKD 14,000,000 in the previous year[51] - The company reported a net foreign exchange loss of HKD 2,146,000 for the first half of 2023, compared to HKD 2,540,000 in the same period of 2022[99] Dividends and Shareholder Information - The company declared an interim dividend of HKD 0.01 per share for the first half of 2023, compared to no dividend in the same period last year[20] - As of June 30, 2023, the total number of shares held by Mr. Li Siu Leung is 171,205,982 shares, representing 74.41% of the company[36] - The company had no outstanding share options as of June 30, 2023, thus no diluted earnings per share were reported[106] Assets and Liabilities - The company's total assets as of June 30, 2023, are HKD 862,907,000, a decrease from HKD 997,527,000 as of December 31, 2022[45] - Total liabilities decreased to HKD 394,547,000 from HKD 527,637,000 as of December 31, 2022[47] - The company's net asset liability ratio at the end of June 2023 was approximately 32.8%, down from 33.5% at the end of December 2022[13] - Short-term borrowings decreased to HKD 179,911,000 as of June 30, 2023, down from HKD 231,948,000 as of December 31, 2022, reflecting efforts to reduce the debt-to-equity ratio[25] - The total borrowings as of June 30, 2023, were HKD 179,911,000, down 22% from HKD 231,948,000 at the beginning of the year[97] Cash Flow and Capital Expenditure - As of June 30, 2023, cash and cash equivalents amounted to HKD 13,609,000, a decrease from HKD 63,438,000 as of December 31, 2022, primarily due to increased repayment of bank loans[24] - Operating cash flow generated was HKD 26,712 thousand, compared to a cash outflow of HKD 35,570 thousand in the previous year, resulting in a net cash inflow of HKD 20,390 thousand for the period[55] - The total cash and cash equivalents at the end of the period decreased to HKD 13,609 thousand from HKD 51,823 thousand in the previous year, reflecting a net decrease of HKD 47,387 thousand[55] - Total capital expenditure for the first six months of 2023 was HKD 1,019,000, slightly up from HKD 996,000 in the same period of 2022[32] Market and Business Outlook - The company anticipates a positive business outlook for the second half of 2023, particularly in the new energy vehicle market[26] - The sales team is focusing on attracting more customers in promising markets such as new energy vehicles and aerospace[26] - The automotive production in China for the first half of 2023 was 13 million vehicles, a year-on-year increase of 9.3%, with 3.8 million of those being new energy vehicles, representing a growth of 42.4%[21] Governance and Compliance - The company has complied with the corporate governance code as of June 30, 2023[41] - There were no major shareholders holding 5% or more of the company's issued share capital as of June 30, 2023[40] Inventory and Receivables - Inventory balance increased to HKD 128,921,000 as of June 30, 2023, compared to HKD 92,890,000 as of December 31, 2022, with inventory turnover days rising from 46 to 69 days[24] - Accounts receivable decreased to HKD 210,446,000 as of June 30, 2023, from HKD 263,661,000 as of December 31, 2022, with accounts receivable turnover days improving from 110 to 94 days[24]
力丰(集团)(00387) - 2023 - 中期财报