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保宝龙科技(01861) - 2019 - 中期财报

Revenue Performance - For the six months ended June 30, 2019, the group recorded revenue of approximately HKD 287.4 million, a slight decrease of about 1.1% compared to HKD 290.6 million for the same period in 2018[14]. - Revenue from Chinese customers was approximately HKD 220.5 million, remaining stable compared to HKD 220.6 million in the previous year, primarily due to an increase in unit selling prices offset by RMB depreciation[14]. - Revenue from overseas customers was approximately HKD 66.9 million, a decrease from HKD 70.0 million in the previous year, influenced by reduced export sales to a U.S. customer and ongoing efforts to develop new clients globally[14]. - Total revenue for the six months ended June 30, 2019, was HKD 287,409,000, a slight decrease from HKD 290,612,000 in the same period of 2018, representing a decline of approximately 1%[49]. - The company's revenue for the six months ended June 30, 2019, was HKD 287,409,000, a slight decrease of 0.7% from HKD 290,612,000 in the same period of 2018[96]. - Revenue from the mainland China market was HKD 220,463,000, representing a decrease of 0.1% compared to HKD 220,628,000 in the previous year[100]. Cost and Profitability - The group's cost of sales for the six months was approximately HKD 204.8 million, representing about 71.3% of revenue, a decrease from 74.2% in the previous year, attributed to lower procurement costs for solvents due to falling crude oil prices[15]. - For the six months ended June 30, 2019, the group recorded a gross profit of approximately HKD 82.6 million, an increase of about 10.2% compared to HKD 74.9 million for the same period in 2018[16]. - The gross profit margin improved from approximately 25.8% for the six months ended June 30, 2018, to about 28.7% for the same period in 2019[16]. - The cost of goods sold for the period was HKD 204,785,000, down from HKD 215,667,000 in the prior year, indicating a reduction of approximately 5.1%[103]. Expenses and Financial Performance - Other income and gains decreased significantly by 35.6% to approximately HKD 5.7 million, down from HKD 8.9 million in the previous year, primarily due to a decline in waste sales and a significant reduction in exchange gains[16]. - Selling and distribution expenses increased by approximately 7.2% to about HKD 25.2 million, compared to HKD 23.5 million for the same period in 2018[19]. - Administrative expenses surged by approximately 35.0% to around HKD 22.9 million, up from HKD 17.0 million in the previous year, mainly due to increased employee costs and professional fees related to the listing[19]. - Financing costs rose by approximately 125.3% to about HKD 1.7 million, compared to HKD 0.7 million for the same period in 2018[20]. - Net profit for the six months ended June 30, 2019, was approximately HKD 18.2 million, a decrease of about 26.7% from HKD 24.9 million in the previous year[21]. - Profit before tax for the period was HKD 26,596,000, down from HKD 29,526,000 in 2018, indicating a decrease of approximately 10%[49]. - The company reported a net profit of HKD 17,633 thousand for the six months ended June 30, 2019, compared to a profit of HKD 22,850 thousand in the same period of 2018, representing a decrease of approximately 22.5%[57]. - The company’s cash flow from operating activities decreased significantly to HKD 8,966 thousand from HKD 63,794 thousand in the previous year, indicating a decline of approximately 86.9%[63]. Financial Position and Ratios - As of June 30, 2019, the group held cash and cash equivalents of HKD 145.0 million, a slight decrease from HKD 147.4 million at the end of 2018[25]. - The group’s current ratio improved to approximately 2.5 as of June 30, 2019, compared to 2.2 at the end of 2018[25]. - The debt-to-equity ratio decreased to approximately 17.1% as of June 30, 2019, down from 34.0% at the end of 2018[28]. - The company's total assets as of June 30, 2019, were HKD 578,276,000, compared to HKD 536,364,000 as of December 31, 2018, reflecting an increase of approximately 8%[51]. - The net asset value increased to HKD 271,202,000 from HKD 228,436,000, marking a growth of about 19%[54]. - The company reported a decrease in trade payables to HKD 54,320,000 from HKD 68,590,000, a reduction of about 21%[51]. - Non-current liabilities decreased significantly from HKD 78,992,000 to HKD 48,572,000, representing a decline of approximately 38%[51]. Share Capital and Options - The company issued 234,544,750 shares as of June 30, 2019, with a share capital of HKD 2,345,000[120]. - The company adopted a pre-IPO share option scheme effective June 21, 2019, with an exercise price of HKD 2.17 per share[131]. - The fair value of the stock options granted under the pre-IPO stock option plan is estimated at approximately HKD 6,023,000, with HKD 113,000 recognized as stock option expenses for the six months ended June 30, 2019[133]. - The stock option plan aims to encourage eligible participants to perform at their best for the benefit of the group and to attract and retain contributors[139]. - The maximum number of shares that may be issued under the stock option plan cannot exceed 10% of the total issued shares at the time of listing, which is 23,454,475 shares[144]. - The exercise price for the options granted under the pre-IPO share option plan is HKD 2.17 per share[161]. - The company has not granted any options under the share option plan as of the report date[171]. Corporate Governance and Compliance - The Audit Committee was established on May 27, 2019, to oversee financial reporting and risk management[173]. - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO[176]. - The company believes that having the same person serve as both Chairman and CEO enhances unified leadership and effective strategic planning[177]. - The company maintained a sufficient public float of at least 25% of the total issued shares as of June 30, 2019[178].