Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 77,536,000, an increase of 18.5% compared to HKD 65,429,000 for the same period in 2020[3] - Gross profit for the same period was HKD 23,652,000, up from HKD 19,255,000, reflecting a gross margin improvement[3] - The company reported a loss of HKD 19,595,000 for the six months ended June 30, 2021, significantly reduced from a loss of HKD 66,805,000 in the prior year, indicating a 70.7% improvement[3] - Other income increased to HKD 3,250,000 from HKD 2,081,000, representing a growth of 56.2%[3] - The company recorded a total comprehensive loss of HKD 1,085,000 for the six months ended June 30, 2021, compared to HKD 27,025,000 in the previous year, reflecting a significant reduction in losses[5] - The pre-tax loss for the six months ended June 30, 2021, was HKD 19,595,000, compared to a pre-tax loss of HKD 66,805,000 for the same period in 2020, indicating a significant reduction in losses[33] - The loss for the period decreased by approximately HKD 47,200,000 to about HKD 19,600,000, primarily due to increased gross profit and reduced financial costs[86] Assets and Liabilities - The total assets as of June 30, 2021, were HKD 152,965,000, compared to HKD 132,231,000 as of December 31, 2020, showing a growth of 15.7%[7] - Current assets increased to HKD 145,113,000 from HKD 124,266,000, marking a rise of 16.8%[7] - The company’s total liabilities as of June 30, 2021, were approximately HKD 986,240,000, slightly up from HKD 985,155,000 at the end of 2020[16] - Total liabilities as of June 30, 2021, were HKD 1,139,205,000, compared to HKD 1,117,386,000 as of December 31, 2020, showing a slight increase in liabilities[33] - The company reported a capital deficit of approximately 813.5 million HKD as of June 30, 2021, compared to approximately 812.5 million HKD as of December 31, 2020[110] Cash Flow and Investments - Operating cash flow before changes in working capital was HKD 13,454,000, an increase from HKD 6,937,000 in the previous year[14] - The company’s cash and cash equivalents stood at HKD 68,258,000, up from HKD 63,517,000, indicating a 7.4% increase[7] - The company’s net cash used in investing activities was HKD (1,240,000), compared to HKD (614,000) in the previous year[14] - The company invested approximately HKD 1,240,000 in property, plant, and equipment during the period, compared to HKD 614,000 in the same period of 2020[52] Sales and Revenue Breakdown - The company reported external customer sales of HKD 77,536,000 for the six months ended June 30, 2021, with Jamaica contributing HKD 64,737,000 and the USA contributing HKD 12,799,000[42] - The average selling price of raw sugar increased by approximately 17.1%, attributed to a decline in global sugar production for the second consecutive year[93] - The sales volume of raw sugar increased by approximately 5.9%, with local sales rising by about 1,300 tons[93] - The revenue from molasses increased by approximately JMD 167,300,000 (about HKD 7,600,000), driven by a 32.3% rise in average selling price and a 61.0% increase in sales volume[94] Inventory and Receivables - As of June 30, 2021, the company's inventory totaled HKD 78,249,000, an increase of 45.4% from HKD 53,836,000 on December 31, 2020[56] - The net realizable value of inventory was HKD 59,584,000 as of June 30, 2021, compared to HKD 34,536,000 at the end of 2020, reflecting a significant increase of 72.5%[56] - Trade receivables amounted to HKD 85,191,000 as of June 30, 2021, down 4.1% from HKD 88,965,000 on December 31, 2020[57] - The company reported a decrease in trade receivables after impairment losses, with a net amount of HKD 2,846,000 as of June 30, 2021, compared to HKD 6,898,000 at the end of 2020[60] Employee and Operational Insights - The total employee compensation during the review period was approximately HKD 25 million, up from HKD 20.5 million for the six months ended June 30, 2020, primarily due to an increase in the number of employees[119] - The company has 136 full-time employees and 539 temporary employees as of June 30, 2021, compared to 116 full-time and 422 temporary employees as of December 31, 2020[119] - The operating profit for the ethanol business segment was approximately 100,000 HKD for the six months ended June 30, 2021, compared to an operating loss of approximately 500,000 HKD in the same period in 2020[106] Corporate Governance and Compliance - The company has adopted a code of conduct for directors' securities trading, which complies with the standards set out in the listing rules[149] - The company's audit committee reviewed the unaudited consolidated interim financial statements for the six months ending June 30, 2021, and confirmed proper disclosure according to applicable accounting standards[148] - The company has complied with the corporate governance code, with some deviations noted, including the absence of specified terms for non-executive directors[144] Future Outlook and Strategic Plans - The company has prepared a budget and business plan for the next twelve months to reduce losses and increase cash flow[19] - The sugar business segment is expected to see continued high international sugar prices in the second half of the year due to anticipated declines in sugar production from major producing countries[126] - The ethanol plant construction will remain suspended in the second half of 2021 while alternative business plans are being determined[129]
华联国际(00969) - 2021 - 中期财报