Financial Performance - For the first half of 2020, the group's sales amounted to HKD 291,756,000, a decrease of 23.2% compared to HKD 379,751,000 in the same period last year[5]. - Gross profit for the first half of 2020 was HKD 45,167,000, down 33.7% from HKD 68,163,000 year-on-year, with a gross margin of 15.5% compared to 17.9% in the previous year[5]. - Total contracts signed in the first half of 2020 were valued at HKD 271,691,000, a decline of 13.0% from HKD 312,289,000 in the same period last year[5]. - The group reported a loss attributable to owners of HKD 7,516,000 for the first half of 2020, an increase of 20.4% compared to a loss of HKD 6,241,000 in the same period last year[14]. - Revenue for the six months ended June 30, 2020, was HKD 291,756 thousand, a decrease of 23.2% compared to HKD 379,751 thousand in 2019[52]. - The net loss attributable to the company's owners was HKD 7,516 thousand, compared to a loss of HKD 6,241 thousand in the previous year, representing a 20.5% increase in loss[52]. - Basic loss per share for the period was HKD (3.27), compared to HKD (2.71) in 2019, indicating a worsening of performance[54]. - Total comprehensive loss for the period was HKD 16,637 thousand, a decrease from HKD 18,332 thousand in 2019[58]. Expenses and Cost Management - Selling and distribution costs were HKD 8,008,000, a significant reduction of 52.6% from HKD 16,900,000 in the same period last year[8]. - Administrative expenses decreased by 25.1% to HKD 50,936,000 from HKD 68,045,000 year-on-year, attributed to cost-saving measures implemented by the group[8]. - The company expects to save at least HKD 40,000,000 in operational expenses for the year 2020[23]. - The group’s employee benefit expenses, including directors' remuneration, were HKD 32,553,000 for the six months ended June 30, 2020, down 21% from HKD 41,183,000 in 2019[132]. Assets and Liabilities - The value of uncompleted orders at the end of June 2020 was HKD 104,636,000, down 30.5% from HKD 150,448,000 year-on-year[5]. - As of June 30, 2020, the total assets of the company amounted to HKD 799,366,000, a decrease from HKD 897,128,000 as of December 31, 2019, representing a decline of approximately 10.9%[48]. - The company's total equity stood at HKD 415,834,000, compared to HKD 438,223,000, showing a decrease of around 5.1%[51]. - The total liabilities decreased to HKD 383,532,000 from HKD 458,905,000, marking a reduction of approximately 16.4%[51]. - The group’s total assets as of June 30, 2020, amounted to HKD 799,366,000, a decrease from HKD 897,128,000 as of December 31, 2019[105]. - The group reported a total borrowing of HKD 170,651,000 as of June 30, 2020, down from HKD 239,094,000 as of December 31, 2019, indicating a 29% decrease[129]. Cash Flow and Financing - For the six months ended June 30, 2020, the company reported a net cash outflow from operating activities of HKD 23,760,000, compared to HKD 29,435,000 for the same period in 2019, representing a decrease of approximately 19%[69]. - The company generated a net cash inflow from investing activities of HKD 82,126,000, a significant increase from HKD 10,712,000 in the prior year, indicating a strong improvement in investment performance[69]. - The financing activities resulted in a net cash outflow of HKD 60,186,000, compared to a net inflow of HKD 20,122,000 in the previous year, reflecting changes in borrowing and repayment strategies[69]. - The company reported a net financing cost of HKD (2,763) thousand, an improvement from HKD (3,175) thousand in the previous year[52]. Market and Business Outlook - The company anticipates that the measurement instruments business will see significant growth in the coming years following the sale of a 49% stake in Mitutoyo Leeport Metrology Corporation[23]. - Approximately HKD 34,022,000 from the sale proceeds was allocated to expand the measurement instruments division in China[35]. - The company plans to continue focusing on metal processing machinery and electronic equipment, aiming for market expansion and product development in the upcoming periods[70]. Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations during the reporting period[44]. - The board of directors confirmed adherence to the standard code for securities trading throughout the reporting period[46]. Employee and Management Information - As of June 30, 2020, the company employed 268 staff, down from 310 as of December 31, 2019[26]. - For the six months ended June 30, 2020, the total remuneration for key management personnel was HKD 5,303,000, an increase from HKD 4,475,000 in 2019, representing a growth of 18.5%[149].
力丰(集团)(00387) - 2020 - 中期财报