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保宝龙科技(01861) - 2021 - 中期财报

Revenue Performance - For the six months ended June 30, 2021, the group recorded revenue of approximately HKD 287.0 million, a decrease of about 16.6% compared to HKD 344.1 million for the same period in 2020[15]. - Revenue from Chinese customers was approximately HKD 210.0 million, a slight increase of about 0.4% from HKD 209.1 million in the same period of 2020[15]. - Revenue from overseas customers decreased significantly to approximately HKD 77.0 million from HKD 135.0 million in the same period of 2020, primarily due to the ongoing impact of the COVID-19 pandemic and increased shipping costs[15]. - The automotive beauty and maintenance products segment generated revenue of HKD 243,423 thousand, while personal care products contributed HKD 43,618 thousand for the six months ended June 30, 2021[86]. - The mainland China market accounted for HKD 209,994 thousand of total revenue, with Japan contributing HKD 44,676 thousand for the same period[86]. Profitability and Financial Performance - The gross profit for the same period was approximately HKD 77.2 million, a significant decrease of about 37.8% from HKD 124.1 million in 2020, primarily due to the ongoing COVID-19 pandemic and rising raw material costs[17]. - The net profit attributable to the company's owners for the six months ended June 30, 2021, was approximately HKD 7.1 million, a substantial decrease of about 76.3% from HKD 29.9 million in 2020[23]. - The profit before tax was HKD 11.96 million, significantly lower than HKD 60.68 million in the previous year[53]. - The company reported a net cash outflow from investing activities of HKD 50,415,000 for the first half of 2021, compared to HKD 12,749,000 in the same period of 2020[68]. - The company reported a loss of HKD 444,000 from the sale of properties, plants, and equipment in the first half of 2021, compared to a loss of HKD 116,000 in the same period of 2020[66]. Cost and Expenses - For the six months ended June 30, 2021, the group's cost of sales was approximately HKD 209.8 million, accounting for about 73.1% of revenue, an increase of 9.2% compared to the same period in 2020[16]. - Selling and distribution expenses decreased by approximately 17.3% to HKD 21.8 million, attributed to reduced overseas sales and lower transportation costs[20]. - Administrative expenses slightly decreased by about 0.3% to HKD 27.5 million, with increases in employee salaries and benefits offset by reductions in other costs[21]. - Financing costs rose by approximately 44.4% to HKD 1.3 million, mainly due to an increase in average bank loan balances and overall borrowing rates[22]. Assets and Liabilities - As of June 30, 2021, the group held net current assets of approximately HKD 72.9 million, with cash and cash equivalents totaling HKD 156.7 million[26]. - The debt-to-equity ratio as of June 30, 2021, was approximately 38.3%, an increase from 31.3% as of December 31, 2020, due to a decrease in cash and an increase in total borrowings[29]. - Total assets as of June 30, 2021, amounted to HKD 561,075 thousand, compared to HKD 521,275 thousand as of December 31, 2020, indicating a growth of about 7.6%[84]. - Total liabilities as of June 30, 2021, were HKD 322,746 thousand, an increase from HKD 295,551 thousand as of December 31, 2020, representing a rise of approximately 9.2%[84]. Employee and Management Compensation - As of June 30, 2021, the group had 532 employees, with employee costs amounting to approximately HKD 27.0 million, an increase from HKD 21.7 million for the same period in 2020[34]. - Employee benefits expenses, including salaries and wages, totaled HKD 31,353 thousand for the six months ended June 30, 2021, compared to HKD 26,257 thousand in the same period of 2020, reflecting an increase of approximately 19.5%[95]. - Total remuneration for key management personnel amounted to HKD 4,083,000 for the six months ended June 30, 2021, a slight increase from HKD 4,045,000 in the same period of 2020[121]. Strategic Initiatives and Market Outlook - The group is focusing on enhancing its OBM business by increasing brand awareness through sponsorships and multimedia platforms, aiming to expand its customer base[11]. - The company is optimistic about the long-term stability of the Chinese market despite the economic slowdown caused by the COVID-19 pandemic[12]. - The group plans to continue improving its OBM product range and increasing product competitiveness to enhance its business performance[12]. - A strategic acquisition of land in Thailand was made in July 2020 to establish a new production facility, aimed at expanding overseas production capabilities[13]. - The new production facility aims to enhance competitiveness in Asia by benefiting from lower raw material costs and mitigating risks from stricter regulations in China[37]. Share Options and Corporate Governance - The share option plan allows for a total of 7,765,000 shares to be issued, representing approximately 3.3% of the company's issued share capital post-listing[124]. - The company aims to incentivize key management and employees through the share option plan to enhance performance and efficiency[137]. - The audit committee was established on May 27, 2019, to review financial statements and oversee risk management and internal control systems[170]. - The remuneration committee was also established on May 27, 2019, to provide recommendations on the remuneration policies for all directors and senior management[171]. - The company has not granted any share options to directors or major shareholders that exceed 0.1% of the issued shares or have a total value exceeding HKD 5 million without prior shareholder approval[142].