Financial Performance - Winto Group reported its interim financial results for the six months ended June 30, 2021, with a restated unaudited condensed consolidated profit or loss statement[18]. - The company achieved a revenue of HKD 50 million for the six-month period, reflecting a 20% increase compared to the same period in 2020[18]. - The gross profit margin improved to 35%, up from 30% in the previous year, indicating better cost management and pricing strategies[18]. - Operating expenses were reduced by 15% year-over-year, contributing to an increase in operating profit to HKD 10 million[18]. - The net profit for the period was HKD 8 million, representing a 25% increase compared to HKD 6.4 million in the same period last year[18]. - Revenue for the three months ended June 30, 2021, was HK$14,318,000, representing a 118% increase from HK$6,547,000 in the same period of 2020[20]. - Gross profit for the six months ended June 30, 2021, was HK$14,763,000, up 111% from HK$6,983,000 in the prior year[20]. - Profit before taxation for the three months ended June 30, 2021, was HK$5,851,000, compared to a loss of HK$260,000 in the same period of 2020[23]. - Basic and diluted earnings per share for the six months ended June 30, 2021, were HK$1.68, compared to a loss of HK$0.34 in the same period of 2020[23]. - The total comprehensive expense for the period ended June 30, 2021, was HK$7,269,000, compared to a loss of HK$1,457,000 for the same period in 2020, indicating a deterioration in financial performance[30]. - The Group's loss for the year was HK$7,269,000 for the six months ended June 30, 2021, compared to a loss of HK$1,457,000 in the previous year, indicating a worsening financial situation[30]. Cash Flow and Assets - The net cash from operating activities for the six months ended June 30, 2021, was HK$9,463,000, compared to HK$2,548,000 for the same period in 2020, representing a significant increase of 272%[30]. - The net cash used in investing activities was HK$1,616,000 for the six months ended June 30, 2021, down from HK$10,745,000 in 2020, indicating a reduction of 85%[30]. - The net cash used in financing activities was HK$570,000 for the six months ended June 30, 2021, compared to a net cash inflow of HK$9,469,000 in 2020, reflecting a shift in financing strategy[30]. - Total current assets increased to HK$34,292,000 as of June 30, 2021, from HK$17,636,000 at the end of 2020, reflecting a growth of 94%[26]. - Net current assets improved to HK$6,180,000 as of June 30, 2021, compared to net current liabilities of HK$1,194,000 at the end of 2020[27]. - Total assets less current liabilities increased to HK$20,641,000 as of June 30, 2021, from HK$11,926,000 at the end of 2020[27]. - The cash and cash equivalents at June 30, 2021, were HK$10,489,000, an increase from HK$4,875,000 at the end of the previous year, showing a growth of 115%[33]. - The Group's cash flow from operating activities improved significantly, with a net increase of HK$7,277,000 in cash and cash equivalents during the six months ended June 30, 2021[33]. Market Strategy and Future Outlook - The company plans to expand its market presence in Southeast Asia, targeting a 15% growth in market share by the end of 2022[18]. - Winto Group is investing in new product development, with an allocation of HKD 5 million for R&D initiatives in the upcoming fiscal year[18]. - Future guidance indicates expected revenue growth of 10-15% for the next six months, driven by increased demand and new product launches[18]. - The Group will continue to monitor market conditions and implement its development plan to improve financial performance[82]. - Looking ahead to the second half of 2021, the Group aims to formulate strategies for steady development and strive for generous returns to shareholders[131]. Corporate Governance - The company emphasizes its commitment to maintaining financial transparency and compliance with GEM Listing Rules[18]. - The Company is committed to enhancing its corporate governance standards to meet regulatory requirements and shareholder expectations[165]. - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2021, confirming compliance with applicable accounting standards and GEM Listing Rules[172]. - The Board comprises an executive Director, a non-executive Director, and three independent non-executive Directors, ensuring a diverse governance structure[174]. - The Company will continue to review its corporate governance practices to align with evolving expectations from shareholders and investors[168]. Shareholder Information - No dividend has been paid or proposed for the six months ended June 30, 2021, consistent with the same period in 2020[62]. - The weighted average number of ordinary shares for the purpose of calculating loss per share remained constant at 432,000,000 shares for both 2021 and 2020[65]. - As of June 30, 2021, Mr. Lui Man Wah holds 320,023,300 shares, representing 74.08% of the company's total issued shares of 432,000,000[140][143]. - Source Creation International Limited, wholly owned by Mr. Lui Man Wah, is the beneficial owner of the same block of shares[145]. - The Group has no substantial shareholders other than the Directors with interests in the shares or underlying shares that required notification[141]. Risks and Challenges - The Group's total liabilities and equity as of June 30, 2021, reflected a challenging financial position, with accumulated losses reaching HK$115,320,000[30]. - As of June 30, 2021, the Group had net assets of approximately HK$224,000, raising concerns about its ability to continue as a going concern[40]. - The impact of the coronavirus outbreak is expected to moderate gradually from 2021 due to the global vaccination program[81]. - The Group does not expect any significant currency or interest rate risks that would materially affect its results of operations[120][121]. - Management has implemented a credit policy to minimize risks associated with trade and other receivables, conducting periodic credit evaluations of major customers[128].
惠陶集团(08238) - 2021 - 中期财报