Financial Performance - For the six months ended June 30, 2021, the company reported a revenue of HKD 1,501,029,000, an increase of 37% compared to HKD 1,098,705,000 in the same period of 2020[8]. - Gross profit for the same period was HKD 211,748,000, up from HKD 172,041,000, reflecting a gross margin improvement[8]. - Operating profit surged to HKD 46,464,000, compared to HKD 5,718,000 in the previous year, indicating a significant operational turnaround[8]. - The net profit attributable to equity holders was HKD 36,417,000, a substantial increase from HKD 4,858,000 in the prior year[8]. - Basic and diluted earnings per share increased to HKD 4.0, compared to HKD 0.5 for the same period last year[8]. - The total comprehensive income for the period was HKD 45,600,000, compared to a loss of HKD 36,458,000 in the previous year, highlighting a strong recovery[12]. - Profit attributable to shareholders for the period was HKD 36,680,000, a significant increase from HKD 2,419,000 in the previous year[41]. - The total tax expense for the period was HKD 9,708,000, compared to HKD 1,349,000 in 2020, indicating a substantial rise in tax obligations due to increased profitability[8]. Dividends and Shareholder Returns - The company declared a dividend of HKD 36,315,000, compared to HKD 27,236,000 in the previous year, reflecting a commitment to returning value to shareholders[8]. - The board declared an interim dividend of HKD 0.04 per share, an increase from HKD 0.03 per share in 2020, totaling HKD 36,315,000 for the period[56]. - The company paid dividends of HKD 90,786,000 during the period, an increase from HKD 63,551,000 in the same period last year[26]. Assets and Liabilities - As of June 30, 2021, non-current assets totaled HKD 1,499,105 thousand, a slight increase from HKD 1,476,811 thousand as of December 31, 2020, representing a growth of approximately 1.5%[14]. - Current liabilities increased to HKD 619,074 thousand from HKD 434,698 thousand, which is an increase of approximately 42.4%[14]. - The company's total assets less current liabilities stood at HKD 3,615,792 thousand, up from HKD 3,562,501 thousand, indicating a growth of about 1.5%[14]. - The net asset value decreased slightly to HKD 3,335,453 thousand from HKD 3,388,008 thousand, a decline of approximately 1.5%[17]. - The company reported a significant increase in prepayments to HKD 143,205 thousand from HKD 80,898 thousand, representing a growth of approximately 77.0%[17]. - Deferred income rose to HKD 53,459 thousand from HKD 36,662 thousand, an increase of about 46.0%[17]. - The cash and cash equivalents decreased to HKD 645,367 thousand from HKD 908,794 thousand, a decline of approximately 29.0%[14]. Cash Flow and Financing - The company reported a net cash outflow from operating activities of HKD 258,439,000 for the six months ended June 30, 2021, compared to a cash inflow of HKD 87,508,000 in the same period of 2020[26]. - Cash and cash equivalents decreased by HKD 266,106,000, ending at HKD 615,319,000 as of June 30, 2021, compared to HKD 1,006,544,000 at the end of the previous year[26]. - The company’s cash flow from financing activities resulted in a net cash outflow of HKD 105,589,000, compared to an outflow of HKD 80,457,000 in the previous year[26]. - The company’s bank borrowings increased to HKD 139,209,000 during the period, compared to HKD 31,345,000 in the previous year[26]. Business Segments and Revenue Sources - Revenue from external customers by business segment included HKD 876,785,000 from book and packaging printing, HKD 251,272,000 from consumer product packaging, HKD 125,011,000 from corrugated box business, and HKD 247,961,000 from paper trading[39]. - Revenue from Hong Kong increased to HKD 522,664,000 in 2021 from HKD 294,948,000 in 2020, while revenue from China rose to HKD 403,366,000 from HKD 308,750,000[43]. - The company’s largest business segment, book and packaging printing, saw sales rise by 34% to HKD 877 million, contributing a profit of HKD 28 million compared to a loss of HKD 29 million in the previous year[99]. - The consumer products packaging business achieved a 25% increase in external sales to HKD 251 million, with losses reduced from HKD 5 million to HKD 0.5 million due to debt recovery and government incentives[100]. - The paper trading department saw a significant 73% increase in external sales to HKD 248 million, turning a loss of HKD 4.9 million into a profit of HKD 28 million[101]. Operational Developments and Future Outlook - The company aims to enhance production capacity and modernize operations, including investments in factories in China and Vietnam[97]. - The company is developing consumer-oriented paper products, including the Papery brand and educational resources through the STEM Plus brand[97]. - The company is cautiously optimistic about the second half of the year due to strong orders and sufficient inventory, anticipating improved operating conditions and a return to reasonable levels for paper and shipping costs[112]. - The company plans to invest in innovation and expand production capacity to seize industry consolidation opportunities and adapt to rapid industry developments[112]. - The economic growth in mainland China and the increasing integration between Hong Kong and the mainland present significant business opportunities in the Greater Bay Area[112]. Corporate Governance and Compliance - The company is committed to maintaining compliance with corporate governance codes throughout the reporting period[127]. - The company has adopted a set of securities trading standards to ensure compliance by its directors during the reporting period[128]. - The audit committee has reviewed the interim financial performance for the six months ended June 30, 2021, and discussed matters related to audit, internal control, and financial statements[130]. - The audit committee consists of three independent non-executive directors and one non-executive director[130].
鸿兴印刷集团(00450) - 2021 - 中期财报