Financial Performance - Revenue for the six months ended June 30, 2021, was HK$410,020,000, representing a 26.4% increase from HK$324,394,000 in the same period of 2020[12] - Gross profit for the same period was HK$59,129,000, compared to HK$26,934,000 in 2020, indicating a significant improvement in profitability[12] - Profit attributable to owners of the Company for the period was HK$1,083,000, a recovery from a loss of HK$27,852,000 in the previous year[12] - Total comprehensive income attributable to owners of the Company for the period was HK$36,661,000, recovering from a loss of HK$58,357,000 in the same period last year[14] - Basic and diluted earnings per share for the period were HK$0.13, a significant improvement from a loss of HK$3.41 per share in 2020[14] - The Group's profit before taxation was HK$2,941,000, a turnaround from a loss of HK$27,670,000 in the previous year[12] - Segment profit for the same period was HK$18,849,000, compared to a segment loss of HK$11,573,000 in the prior year, indicating a significant turnaround[58] - EBITDA increased from HK$21.7 million to HK$55.0 million, with a profit of HK$1.1 million recorded in the first half of 2021 compared to a loss of HK$27.9 million in the same period of 2020[134] Comprehensive Income and Expenses - Other comprehensive income included an exchange difference of HK$35,578,000 arising from the translation of foreign operations, compared to a loss of HK$30,505,000 in 2020[14] - The company incurred finance costs of HK$4,442,000 for the six months ended June 30, 2021, up from HK$3,734,000 in the previous year[67] - Other expenses totaled HK$10,753,000, an increase from HK$8,286,000 in the prior year, primarily due to higher depreciation and other costs[65] - Total depreciation for the period was HK$47,592,000, slightly higher than HK$45,635,000 in the same period of 2020[76] - Selling and distribution costs increased by 16.2% to HK$15.8 million, primarily due to rising transportation costs[130] Assets and Liabilities - As of June 30, 2021, total assets less current liabilities amounted to HK$1,851,164,000, an increase from HK$1,829,208,000 as of December 31, 2020, reflecting a growth of approximately 1.2%[19] - Current assets decreased slightly to HK$626,261,000 from HK$639,558,000, representing a decline of about 2.1%[19] - The company's net assets reached HK$1,658,009,000 as of June 30, 2021, compared to HK$1,621,056,000 at the end of 2020, marking an increase of approximately 2.3%[19] - Unsecured bank borrowings decreased to HK$134,913,000 from HK$138,496,000, a reduction of about 2.1%[19] - The carrying amount of bank loans repayable within one year was HK$93,802,000, compared to HK$80,718,000 at the end of 2020, indicating a 16% increase[108] Cash Flow and Investments - For the six months ended June 30, 2021, operating cash flows before movements in working capital were HK$53,513,000, compared to HK$21,791,000 for the same period in 2020, representing an increase of 145%[27] - The net cash used in operating activities was HK$62,020,000, significantly higher than HK$21,960,000 in the previous year, indicating a deterioration in cash flow from operations[27] - The net cash used in investing activities was HK$13,525,000, a significant improvement compared to HK$51,370,000 in the same period last year, indicating better capital management[29] - Cash and cash equivalents at June 30, 2021, were HK$179,731,000, down from HK$322,182,000 at the end of the previous period, reflecting a decrease of 44%[29] Inventory and Receivables - Inventories saw a significant increase, rising to HK$251,278,000 from HK$143,471,000, which is an increase of approximately 75.3%[19] - The trade and bills receivables as of June 30, 2021, were HK$170,286,000, down from HK$192,473,000 as of December 31, 2020, representing a decrease of 11.5%[94] - The total trade, bills, and other receivables decreased to HK$183,523,000 as of June 30, 2021, from HK$200,055,000 as of December 31, 2020, a decline of 8.3%[94] - The average age of trade receivables increased to 79 days as of June 30, 2021, compared to 59 days as of December 31, 2020[99] Corporate Governance and Shareholder Information - The company has met the corporate governance code provisions throughout the reporting period, with some deviations noted[192] - The company emphasizes the importance of a quality Board and effective internal controls to enhance shareholder value[192] - The total number of shares issued by the company is 261,318,081, with Ms. Jian Jian Yi directly holding 19,754,000 shares and deemed interested in 241,564,081 shares due to her relationship with a substantial shareholder[1] - Directors' interests include Mr. Hui Sum Ping holding 15.87% of the issued share capital with 129,824,681 shares[151] - The company did not declare or propose any dividends for the six months ended June 30, 2021, nor for the same period in 2020[83] Market and Operational Insights - The Group faced significant pressure in the corrugated packaging industry due to high wastepaper costs and unstable global consumer demand[119] - The Chinese government's prohibition on wastepaper imports has made it difficult for upstream manufacturers to source raw materials[119] - The Group anticipates a recovery in the Chinese economy, which is expected to boost demand for corrugated packaging[145] - The Group aims to maintain price leadership and improve production efficiency to counter rising costs[146] - The Group emphasizes environmental protection as part of its operational strategy[146]
合丰集团(02320) - 2021 - 中期财报