Financial Performance - For the six months ended June 30, 2021, the company recorded revenue of approximately HKD 187.1 million, an increase of about 39.5% compared to approximately HKD 134.1 million for the same period in 2020[9]. - Gross profit increased by approximately HKD 7.2 million or 29.9% to about HKD 31 million for the six months ended June 30, 2021, compared to approximately HKD 23.8 million for the same period in 2020[17]. - The group recorded a loss for the period of approximately HKD 2,800,000 for the six months ended June 30, 2021, down from approximately HKD 8,400,000 for the same period in 2020, mainly due to improved sales performance[25]. - The net loss for the six months ended June 30, 2021, was HKD 2,776 thousand, a significant improvement from a net loss of HKD 8,376 thousand in the prior year, indicating a reduction in losses by 66.8%[76]. - The total comprehensive loss for the period was HKD 1,696 thousand, compared to HKD 10,140 thousand in the same period last year, reflecting a 83.3% decrease[78]. Cost and Expenses - The sales cost increased by approximately HKD 45.8 million or 41.6% to about HKD 156.1 million for the six months ended June 30, 2021, compared to approximately HKD 110.3 million for the same period in 2020[16]. - Selling and distribution expenses slightly increased by approximately HKD 100,000 or 1.0%, from approximately HKD 6,100,000 for the six months ended June 30, 2020, to approximately HKD 6,200,000 for the same period in 2021[20]. - Administrative and other operating expenses rose by approximately HKD 2,100,000 or 7.7%, from approximately HKD 27,400,000 for the six months ended June 30, 2020, to approximately HKD 29,500,000 for the same period in 2021[22]. - The total employee benefit expenses for the six months ended June 30, 2021, amounted to approximately HKD 46,600,000, compared to HKD 41,600,000 for the same period in 2020, representing an increase of about 12%[46]. Assets and Liabilities - As of June 30, 2021, the group's total assets were approximately HKD 254,700,000, down from approximately HKD 287,200,000 as of December 31, 2020, with a debt-to-equity ratio of approximately 2.2%, a decrease of about 69.9%[27]. - The group had cash and bank deposits totaling approximately HKD 65,600,000 as of June 30, 2021, down from approximately HKD 76,400,000 as of December 31, 2020, primarily due to loan repayments and operational uses[28]. - Current assets amounted to HKD 217,464 thousand as of June 30, 2021, down from HKD 245,123 thousand at the end of 2020, indicating a decrease of 11.3%[80]. - Trade receivables as of June 30, 2021, were HKD 70,079,000, down from HKD 96,330,000 at the end of 2020, showing a 27.2% decrease[120]. - The group’s trade payables decreased to HKD 47,660,000 as of June 30, 2021, from HKD 66,665,000 at the end of 2020, a reduction of 28.5%[124]. Market and Business Outlook - The global eyewear market is expected to grow at a compound annual growth rate of 8% from 2021 to 2026, reaching a value of USD 219.4 billion by 2026[10]. - The company anticipates moderate growth in the eyewear industry over the next five years, despite uncertainties related to the ongoing COVID-19 pandemic[12]. - The company has seen a rebound in sales backlog since early 2021 due to increasing demand for eyewear products as the global economy recovers[10]. Corporate Governance and Shareholder Information - The group has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions during the six months ended June 30, 2021[55]. - As of June 30, 2021, the company has a total of 275,952,000 shares held by major shareholders, representing approximately 55.19% of the company's equity[64]. - The major shareholders include Mr. Guo Junhui, Mr. Guo Junyu, and Mrs. Chen Yanhua, each holding a controlled corporation interest of 275,952,000 shares[64]. - The board of directors does not recommend the payment of an interim dividend for the six months ended June 30, 2021[70]. Risks and Challenges - The group faces various risks including foreign currency risk, operational risk, and market risk, which could impact its financial performance and growth prospects[35][36][40]. - The group has temporarily suspended plans to construct a new building at its Jiangxi production base to expand capacity due to the challenging economic environment and the ongoing global COVID-19 situation[53]. Cash Flow and Financing Activities - Net cash generated from operating activities for the six months ended June 30, 2021, was HKD 346,000, a decrease of 83.4% compared to HKD 2,084,000 in 2020[88]. - Net cash used in investing activities for the same period was HKD 7,199,000, slightly improved from HKD 7,556,000 in 2020[88]. - Net cash used in financing activities was HKD 9,722,000, a decrease from HKD 13,160,000 in 2020[88]. Inventory and Capital Commitments - The inventory balance as of June 30, 2021, was HKD 68,816,000, compared to HKD 59,732,000 at the end of 2020, representing a 15.3% increase[118]. - The group had capital commitments related to properties, plants, and equipment amounting to approximately HKD 2,200,000 and HKD 8,400,000, respectively, as of June 30, 2021[42].
恒发光学(01134) - 2021 - 中期财报