Financial Performance - The company reported a revenue of HKD 1,972,376,000 for the six months ended June 30, 2021, representing a 56.5% increase from HKD 1,258,920,000 in the same period of 2020[3]. - Gross profit for the same period was HKD 292,086,000, up 41.8% from HKD 206,022,000 year-on-year[3]. - The net profit for the period was HKD 91,862,000, compared to HKD 32,667,000 in the previous year, marking an increase of 180.5%[3]. - The total comprehensive income for the period was HKD 98,218,000, significantly higher than HKD 22,328,000 in the prior year[7]. - The company's basic earnings per share for the period was HKD 13.63, compared to HKD 3.89 in the previous year, reflecting a substantial growth[9]. - The company reported other income of HKD 22,738,000, which is a significant increase from HKD 9,844,000 in the previous year, representing a growth of 131.5%[3]. - The pre-tax profit for the six months ended June 30, 2021, was HKD 100,386,000, compared to HKD 40,250,000 for the same period in 2020[44][49]. - Profit for the period was HKD 78,286,000, compared to HKD 22,338,000 for the same period in 2020, reflecting a significant increase[59]. - Profit attributable to shareholders after deducting non-controlling interests was approximately HKD 78,286,000, a significant increase of 250% year-on-year[83]. Cash Flow and Financial Position - The company reported a net cash outflow from operating activities of HKD 166,669,000 for the six months ended June 30, 2021, compared to a net inflow of HKD 187,007,000 for the same period in 2020[26]. - The company generated a net cash inflow from investing activities of HKD 2,029,000, a significant improvement from a net outflow of HKD 19,940,000 in the previous year[26]. - Financing activities resulted in a net cash inflow of HKD 287,188,000, compared to a net outflow of HKD 184,693,000 in the prior period[26]. - The company's cash and cash equivalents increased to HKD 547,199,000 at the end of the period, up from HKD 303,097,000 at the end of the previous period[26]. - The total borrowings as of June 30, 2021, were approximately HKD 1,019,677,000, compared to HKD 691,766,000 at the end of 2020[89]. - The net asset to debt ratio was 0.42:1 as of June 30, 2021, compared to 0.26:1 at the end of 2020[90]. Assets and Liabilities - The company's current liabilities increased to HKD 1,505,896,000 from HKD 1,105,887,000, reflecting a rise of 36.1%[13]. - The inventory as of June 30, 2021, was HKD 735,254,000, up from HKD 444,521,000, indicating a 65.5% increase[11]. - Trade and bills receivables net amount increased to HKD 776,940,000 from HKD 691,940,000, indicating improved collection efficiency[64]. - Trade payables as of June 30, 2021, amounted to HKD 179,503,000, up from HKD 145,567,000 as of December 31, 2020[68]. Dividends and Shareholder Information - The company declared dividends amounting to HKD 2,820,000 to non-controlling interests during the period[26]. - The company declared a final dividend of HKD 0.035 per share for the year ended December 31, 2020, totaling approximately HKD 20,103,000[58]. - The company declared an interim dividend of HKD 0.02 per share[84]. - Golik Investments Ltd. holds 201,666,392 shares, representing 35.11% of the issued share capital[101]. Operational Insights - The company faced challenges due to the COVID-19 pandemic, including rising raw material prices and supply chain disruptions, but managed to achieve expected performance targets[83]. - The company actively focused on operational efficiency to mitigate business risks during the challenging environment[83]. - The construction materials business faced pressure from rising raw material costs, but implemented strict measures to stabilize costs and ensure supply[87]. Corporate Governance and Management - The company has maintained compliance with the corporate governance code as per Appendix 14 of the listing rules for the six months ending June 30, 2021, with exceptions noted[103]. - The company has not engaged in any buying or redeeming of its listed securities during the six months ending June 30, 2021[114]. - The Audit Committee reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2021[110]. - The company has not established a nomination committee, as the entire board is responsible for reviewing its structure and appointing new directors[103]. - The company appointed Mr. Xie Duan Tai as an independent non-executive director on June 16, 2021[108]. - The company has seen changes in its board composition, including the resignation of Mr. Liu Yihui as an executive director effective July 1, 2021[106]. Accounting Policies and Standards - The company did not adopt any new standards or interpretations that were not yet effective during the accounting period[41]. - The application of revised Hong Kong Financial Reporting Standards did not have a significant impact on the financial position and performance of the group[31]. - The group’s accounting policies for operating segments are consistent with the overall accounting policies of the group[50].
高力集团(01118) - 2021 - 中期财报