Revenue and Profitability - The group's revenue for the six months ended June 30, 2021, was approximately HKD 223,790,000, an increase of about HKD 14,690,000 or 7.0% compared to HKD 209,100,000 for the same period in 2020[8]. - Revenue from the cigarette packaging business was approximately HKD 99,410,000, a decrease from HKD 114,820,000 in 2020, with sales of cigarette packaging materials contributing HKD 98,010,000[9]. - The environmental governance business recorded revenue of approximately HKD 121,270,000, an increase of 28.6% compared to HKD 94,280,000 in 2020[9]. - The overall gross profit for the reporting period was approximately HKD 70,190,000, a decrease of HKD 5,530,000 or 7.3% from HKD 75,720,000 in 2020, with a gross profit margin dropping from 36% to 31%[10]. - The basic earnings per share for the reporting period were HKD 0.0606, down from HKD 0.0642 in 2020[17]. - Net profit for the period was HKD 42,198,000, a decrease of 7.06% from HKD 45,473,000 in 2020[73]. - The group reported a net gain of HKD 8,215,000 from other income for the six months ended June 30, 2021, compared to HKD 1,000,000 in the same period of 2020, reflecting a substantial increase[175]. Expenses and Liabilities - Administrative expenses for the reporting period were approximately HKD 25,780,000, an increase of about HKD 2,940,000 or 12.9% compared to HKD 22,840,000 in 2020[13]. - Total liabilities increased to HKD 254,961,000 from HKD 189,691,000, indicating a rise of 34.38%[82]. - The group’s total liabilities as of June 30, 2021, were HKD 254,961,000, with current tax liabilities amounting to HKD 25,947,000 and deferred tax liabilities of HKD 12,108,000[156]. Cash Flow and Investments - The group’s cash and cash equivalents totaled approximately HKD 106,990,000 as of June 30, 2021, compared to HKD 103,280,000 as of December 31, 2020[19]. - The net cash generated from operating activities for the six months ended June 30, 2021, was HKD 19,408,000, down from HKD 23,902,000 in 2020, representing a decrease of 18.66%[103]. - The cash flow from investing activities showed a net inflow of HKD 11,468,000 for the first half of 2021, compared to a net outflow of HKD 19,535,000 in the same period of 2020[105]. - The company reported a decrease in cash flow used in financing activities, which amounted to HKD 28,975,000 for the first half of 2021, compared to HKD 19,512,000 in the same period of 2020[105]. Assets and Equity - The net asset value as of June 30, 2021, was HKD 476,500,000, up from HKD 456,940,000 as of December 31, 2020[19]. - Total assets as of June 30, 2021, amounted to HKD 731,461,000, an increase from HKD 646,629,000 as of December 31, 2020[81]. - The company’s total equity as of June 30, 2021, was HKD 252,455,000, an increase from HKD 226,682,000 at the end of June 2020, reflecting an increase of 11.36%[99]. Corporate Governance and Management - The company has established sufficient risk management procedures to identify and control various risks in line with the best interests of the group and its shareholders[54]. - The company has adopted and applied the corporate governance code as per the Hong Kong Stock Exchange's listing rules, ensuring compliance during the review period[59]. - The roles of the Chairman and CEO are held by the same individual, Zheng Yisheng, which the board believes does not imbalance the authority between the board and management[60]. Employee and Operational Insights - The total number of employees as of June 30, 2021, was 341, a slight decrease from 344 as of June 30, 2020[34]. - The group aims to enhance production efficiency and inventory management to control production costs amid tightening tobacco control policies in China[33]. - The group’s employee costs, including directors' remuneration, rose to HKD 19,680,000 for the six months ended June 30, 2021, compared to HKD 17,195,000 in the previous year, marking an increase of about 14.5%[173]. Future Outlook and Strategic Plans - The group expects to continue investing in new environmental projects to enhance revenue streams in the future[9]. - The group plans to develop new integrated water treatment projects across Guangdong Province, responding to stricter environmental protection policies[33]. - The company continues to engage in the production and sale of cigarette packaging materials and environmental remediation services in China, indicating ongoing market focus and expansion strategies[109].
华禧控股(01689) - 2021 - 中期财报