Financial Performance - For the six months ended June 30, 2021, the company achieved revenue of approximately HK$451.1 million, with a profit attributable to owners of the company amounting to approximately HK$16.0 million and basic earnings per share of approximately HK1 cent[9]. - The Group's revenue decreased by approximately HK$164.5 million or 26.7% to HK$451.1 million during the Period under Review compared to HK$615.6 million in the corresponding period in 2020[26]. - Revenue for the six months ended June 30, 2021, was HK$451,149,000, a decrease of 26.7% compared to HK$615,641,000 in 2020[90]. - Gross profit decreased by 49.6% to approximately HK$68.2 million, with the gross profit margin dropping to 15.1% from 22.0% in the previous year[32]. - Profit attributable to owners of the company was approximately HK$16.0 million, a decrease of approximately HK$67.0 million or 80.7% compared to the corresponding period in 2020, primarily due to an impairment loss on goodwill of approximately HK$41.5 million and a 32.3% decrease in sales volume of cigarette packages[41][43]. - Total comprehensive income for the period was HK$36,934,000, compared to HK$32,221,000 in 2020, indicating a 14.4% increase[93]. - Earnings per share for the period were HK$0.01, down from HK$0.05 in 2020[93]. Revenue Segments - Revenue from the printing and manufacturing of cigarette packages and related materials segment decreased by 32.3% to HK$387.1 million, primarily due to loss of tenders from major customers[26]. - Sales of RFID products increased by 87.2%, contributing HK$54.9 million to the Group's revenue, up from HK$29.3 million in the same period last year[26]. - Revenue from the printing and manufacturing of cigarette packages and related materials was approximately HK$387.1 million, a decrease from HK$571.4 million in the same period in 2020, representing a decline of approximately 32.2%[44][45]. Cost and Expenses - The company faced challenges due to falling tender prices and rising raw material costs, prompting measures to strengthen production cost control and improve efficiency[12]. - Other income decreased by HK$10.5 million to HK$16.7 million, mainly due to a reduction in government grants[32]. - Other losses increased by 778% to HK$35.9 million, primarily due to impairment losses on goodwill of approximately HK$41.5 million[32]. - Administrative expenses increased by approximately HK$5.9 million or 12.8% compared to the corresponding period in 2020, attributed to one-off compensation for dismissed staff[34]. - Finance costs decreased by approximately HK$0.3 million or 3.6% due to a reduction in the average bank borrowings rate[35]. Assets and Liabilities - As of June 30, 2021, the Group had net current assets of approximately HK$343.0 million, down from HK$392.2 million as of December 31, 2020[47]. - Bank borrowings amounted to approximately HK$294.7 million as of June 30, 2021, a decrease from HK$411.2 million as of December 31, 2020[47]. - Current liabilities decreased to HK$726,013,000 from HK$747,490,000, a decline of 2.3%[99]. - Non-current assets totaled HK$2,376,640,000, down from HK$2,449,145,000, a decrease of 2.9%[98]. - As of June 30, 2021, total equity decreased to HK$2,649,972, down from HK$2,769,827 as of December 31, 2020, representing a decline of approximately 4.3%[102]. Cash Flow - Net cash from operating activities for the six months ended June 30, 2021, was HK$176,709, an increase of 30.4% compared to HK$135,522 for the same period in 2020[180]. - The net increase in cash and cash equivalents for the period was HK$96,550,000, a decrease from HK$534,406,000 in the previous year[183]. - Cash and cash equivalents at the end of the period stood at HK$405,528,000, down from HK$726,189,000 at the end of June 2020[183]. Corporate Governance and Compliance - The Company has complied in general with the Corporate Governance Code during the Period under Review[74]. - The audit committee has reviewed the accounting principles and practices adopted by the Group and discussed internal control, risk management, and financial reporting matters[79]. - The Company has complied with the corporate governance code during the review period, except for specific provisions due to the absence of a director at the annual general meeting[76]. Future Outlook - The Group plans to continue expanding into other packaging markets and improve financial performance through cost reduction and efficiency enhancement measures[24]. - The principal activities of the company include research and development on printing technology, highlighting a commitment to innovation[188].
力图控股(01008) - 2021 - 中期财报