Financial Performance - The company reported revenue of HKD 191,520,000 for the six months ended December 31, 2020, an increase of 30.5% compared to HKD 146,580,000 in the same period of 2019[5]. - Gross profit for the same period was HKD 30,695,000, up from HKD 18,010,000, reflecting a significant improvement in profitability[5]. - The company achieved a profit before tax of HKD 2,919,000, a turnaround from a loss of HKD 53,105,000 in the previous year[7]. - Net profit attributable to owners of the company was HKD 2,204,000, compared to a loss of HKD 51,492,000 in the prior period[9]. - The total comprehensive income for the period was HKD 5,034,000, recovering from a loss of HKD 1,439,000 in the same period last year[9]. - The company reported a basic and diluted earnings per share of HKD 0.09, recovering from a loss of HKD 2.17 per share in the previous year[9]. - The adjusted profit before tax for the reporting segments was HKD 13,335,000, compared to a loss of HKD 19,924,000 for the same period in 2019[34]. - The pre-tax profit for the six months ended December 31, 2020, was HKD 2,204,000, a significant recovery from a loss of HKD 51,492,000 in the same period of 2019[46]. - The financing costs for the six months ended December 31, 2020, totaled HKD 8,276,000, slightly down from HKD 8,589,000 in the previous year[41]. Assets and Liabilities - The company’s non-current assets totaled HKD 1,063,417,000 as of December 31, 2020, compared to HKD 1,040,336,000 as of June 30, 2020[11]. - Current assets increased to HKD 398,406,000 from HKD 339,773,000, indicating improved liquidity[11]. - Current liabilities rose to HKD 355,816,000 from HKD 218,288,000, reflecting increased operational activities[11]. - Total assets less current liabilities amounted to HKD 1,106,007,000, down from HKD 1,161,821,000[13]. - The total non-current liabilities decreased to HKD 97,470,000 from HKD 152,955,000[13]. - The total equity as of December 31, 2020, was HKD 1,008,537,000, slightly down from HKD 1,008,866,000[13]. - The total liabilities for the reporting segments as of December 31, 2020, were HKD 373,793,000, with the cable segment contributing HKD 216,130,000[31]. - The total liabilities as of December 31, 2020, amounted to HKD 453,286,000, an increase from HKD 371,243,000 as of June 30, 2020, representing a growth of approximately 22%[36]. Cash Flow - The cash flow from operating activities showed a net outflow of HKD 8,245,000, an improvement from HKD 33,499,000 in the previous year[17]. - Cash flow from investing activities generated a net inflow of HKD 5,193,000, compared to HKD 12,240,000 in the prior year[17]. - Cash flow from financing activities resulted in a net outflow of HKD 15,556,000, significantly higher than HKD 2,487,000 in the previous year[17]. - The ending cash and cash equivalents balance was HKD 41,270,000, an increase from HKD 34,957,000 year-over-year[17]. - The group maintained a cash and bank balance of approximately HKD 41,000,000 as of December 31, 2020, down from HKD 64,000,000 on June 30, 2020[107]. Revenue Breakdown - For the six months ended December 31, 2020, total revenue was HKD 191,520,000, with contributions from cable and wire manufacturing (HKD 118,991,000), copper trading (HKD 64,858,000), and investment properties (HKD 7,671,000)[27]. - Revenue from external customers for the six months ended December 31, 2020, was HKD 191,520,000, up from HKD 146,580,000 in the same period of 2019, indicating a year-over-year increase of about 30.6%[38]. - The wire and cable business generated revenue of approximately HKD 118,991,000, a 33.2% increase from approximately HKD 89,339,000 in the previous year[98]. - Revenue from the copper rod segment was approximately HKD 64.86 million, a 25.2% increase from approximately HKD 51.82 million in the same period last year, accounting for 33.9% of total revenue[95]. - Rental income was approximately HKD 7.67 million, a 41.5% increase from approximately HKD 5.42 million in the same period last year, accounting for 4.0% of total revenue[95]. - Revenue from the Americas increased by 105.4% year-on-year to approximately HKD 20,196,000, accounting for 10.6% of total revenue[97]. - Revenue from mainland China and Hong Kong rose by 18.7% year-on-year to approximately HKD 130,617,000, representing 68.2% of total revenue[97]. - Revenue from the European market increased by 61.5% year-on-year to approximately HKD 30,895,000, making up 16.1% of total revenue[97]. Business Strategy and Future Plans - The company plans to continue focusing on market expansion and new product development to drive future growth[5]. - The group plans to leverage its land resources to construct modern factories in Dongguan, China, to generate new revenue[105]. - The group is actively seeking potential business partners and new growth opportunities to diversify and sustain revenue sources[105]. Subsidiary Sale - The company completed the sale of its subsidiary Dongguan Xinbao Fine Chemical Co., Ltd. for a cash consideration of HKD 44,460,000 on December 18, 2020[77]. - The total consideration from the sale of the subsidiary was HKD 44.46 million, resulting in a loss on sale of HKD 9.82 million[79]. - The net cash inflow from the sale of a subsidiary was HKD 29.03 million after deducting cash and bank balances sold[79]. - The decision to sell was influenced by the adverse effects of the COVID-19 pandemic on the local real estate market and the aging condition of the factory facilities[121]. - Following the completion of the sale on December 18, 2020, the company no longer holds any equity in the target company[123]. Corporate Governance - The company complied with the principles of the corporate governance code, except for deviations from certain provisions[140]. - All directors confirmed compliance with the standards set forth in the code during the review period[148]. - The Audit Committee consists of Mr. Zhong Jingguang, Mr. Luo Weiming, and Mr. Luo Zhaoming, all independent non-executive directors[147]. - The Audit Committee has reviewed the unaudited interim results for the review period and agreed on the accounting treatment adopted[147]. Stock Options - As of December 31, 2020, there were a total of 191,520,000 unexercised stock options, representing approximately 8.07% of the company's issued shares of 2,374,532,340[131]. - During the review period, 500,000 stock options expired, with no options exercised or canceled[132]. - The company did not adopt any new stock option plans during the six months ended December 31, 2020[133].
星凯控股(01166) - 2021 - 中期财报