Financial Performance - For the six months ended June 30, 2021, the Group's revenue increased by approximately 37.2% to approximately HK$156.4 million compared to HK$114.0 million in the first half of 2020[9]. - Gross profit rose by approximately 14.5% to approximately HK$67.1 million, with a gross profit margin of approximately 42.9%, down from 51.4% in the first half of 2020[9]. - The Group recorded a profit attributable to owners of approximately HK$2.1 million, a turnaround from a loss of approximately HK$11.8 million in the first half of 2020[9]. - Reported net profit for the first half of 2021 was approximately HK$2.1 million, a significant improvement from a net loss of approximately HK$11.8 million in the first half of 2020, attributed to improved demand as the COVID-19 pandemic came under control[36]. - The net profit for the period was HK$2,136,000, compared to a net loss of HK$11,838,000 in the same period last year[110]. - Profit before tax for the period was HK$3,804,000, a significant recovery from a loss of HK$10,602,000 in the prior year[108]. - Earnings per share for the period was HK$0.11, compared to a loss per share of HK$0.66 in the same period last year[108]. Revenue Breakdown - Revenue for the six months ended June 30, 2021, was HK$156,419,000, an increase of 37.2% compared to HK$114,008,000 for the same period in 2020[108]. - Revenue from external customers for the six months ended June 30, 2021, was HK$156,419,000, an increase of 37.2% compared to HK$114,008,000 for the same period in 2020[197]. - Revenue from Mainland China was HK$55,410,000, up 79.8% from HK$30,879,000 in 2020[197]. - Revenue from Bangladesh increased by 47.5% to HK$17,093,000 from HK$11,579,000 in 2020[197]. - The geographical revenue breakdown indicates a decline in revenue from Hong Kong, which was HK$30,158,000 compared to HK$33,284,000 in 2020, a decrease of 9.5%[197]. - Other regions contributed HK$31,533,000 in revenue, an increase from HK$21,978,000 in 2020, reflecting a growth of 43.3%[197]. Cost and Expenses - Selling and distribution expenses increased by approximately 28.0% from approximately HK$17.4 million in the first half of 2020 to approximately HK$22.2 million in the first half of 2021, primarily due to higher marketing consultancy fees and salaries related to sales personnel[24][30]. - Administrative expenses rose by approximately 7.4% from approximately HK$41.7 million in the first half of 2020 to approximately HK$44.8 million in the same period of 2021, mainly due to increased labor costs and operating costs for new subsidiaries[25][31]. - Taxation expenses for the first half of 2021 amounted to approximately HK$1.7 million, representing an increase of approximately 35.0% from approximately HK$1.2 million in the first half of 2020[28][34]. - Finance costs decreased by approximately 5.0% from approximately HK$1.3 million in the first half of 2020 to approximately HK$1.2 million in the first half of 2021, as no new bank borrowings occurred since December 31, 2020[27][33]. Assets and Liabilities - As of June 30, 2021, the Group had net current assets of approximately HK$118.1 million, an increase from approximately HK$111.7 million as of December 31, 2020[37]. - The current ratio remained stable at approximately 2.18 times as of June 30, 2021, compared to approximately 2.10 times as of December 31, 2020[40]. - The gearing ratio decreased to approximately 4.9% as of June 30, 2021, down from approximately 5.9% as of December 31, 2020, reflecting a solid financial position[40]. - Cash and cash equivalents amounted to approximately HK$99.4 million as of June 30, 2021, down from approximately HK$114.7 million as of December 31, 2020[37]. - Total current assets as of June 30, 2021, amounted to HK$218,270,000, an increase from HK$213,436,000 at the end of 2020[116]. - Total non-current assets were HK$140,331,000, down from HK$148,256,000 at the end of 2020[116]. - The company reported total assets less current liabilities of HK$258,425,000, slightly down from HK$259,973,000 in the previous period[116]. - Net current assets increased to HK$118,094,000 from HK$111,717,000 at the end of 2020[116]. Operational Developments - The Group established a sales office in Italy in March 2021, successfully developing a new local customer base[10]. - The Group is constructing a new three-storey factory in Bangladesh with a gross floor area of approximately 10,600 square meters, expected to commence operations in early 2022[14]. - The Group plans to expand its global business presence by establishing sales offices and production bases in regions with development potential, including Eastern Europe and Central and South America[53]. - A new factory in Bangladesh is expected to commence operations in early 2022, providing greater flexibility in resource deployment to meet customer needs[53]. - The Group has increased investment in RFID technology and expanded its business into RFID product solutions, targeting small to medium-sized customers across over 40 markets[54]. Market and Strategic Focus - The Group is focused on expanding its global sales network to capture market recovery opportunities post-pandemic[10]. - The ongoing COVID-19 pandemic has significantly altered consumer habits, prompting apparel brands to adopt digital transformation strategies[8]. - The Group's proactive approach in leveraging global business resources contributed to a slight turnaround in results for the second quarter of 2021[9]. - Despite rising raw material prices and labor costs, effective cost control measures helped maintain a respectable gross profit margin[9]. - New orders for the first half of 2021 increased compared to the same period last year, demonstrating the Group's strength in maintaining production efficiency and product quality amid ongoing pandemic challenges[52]. Corporate Governance - The company complied with all corporate governance codes as per the Hong Kong Stock Exchange regulations[72]. - The Company maintained high standards of corporate governance practices throughout the reporting period[71]. - The Audit Committee reviewed the unaudited interim condensed consolidated financial information for the six months ended June 30, 2021, ensuring compliance with applicable accounting standards[101]. - There were no competing interests reported for the Directors or substantial shareholders for the six months ended June 30, 2021[99]. Shareholder Information - The Board of Directors does not recommend the payment of an interim dividend for the six months ended June 30, 2021[69]. - The company had 2,000,000 share options outstanding under the Share Option Scheme, with an exercise price of HK$0.057, valid until September 14, 2025[80]. - Charming International holds 1,404,000,000 shares, representing approximately 70.2% of the total issued share capital of the Company[94]. - Mr. Barry Chan and Ms. Candy Law own 51% and 49% of Charming International, respectively, which holds the aforementioned shares[95]. - The Company maintained a public float of no less than 25% as required under the Listing Rules as of the report date[98].
常达控股(01433) - 2021 - 中期财报