Wood-Related Business Performance - Revenue from wood-related business increased from approximately HK$96.9 million in H1 2023 to approximately HK$170.3 million in H1 2024[10] - Revenue from processing and distribution of furniture wood reached approximately HK$152.5 million in H1 2024, up from approximately HK$81.0 million in H1 2023[13] - The Group's core wood-related business includes wood management, distribution, processing, and sale of antique-style wood furniture[10] - China Wood Green Resources (Shenzhen) Co., Limited (CWGreen) is the main operating company for the Group's wood-related business, focusing on supply chain management and processing/distribution of furniture woods[13] - Revenue from furniture wood processing and distribution reached approximately HK$152.5 million, up from HK$81 million in the 2023 interim period[14] - Revenue from manufacturing and sales of antique-style wood furniture and other wooden products amounted to approximately HK$17.8 million, compared to HK$15.9 million in the 2023 interim period[15] - The company plans to continue developing and expanding its core wood-related business, including furniture wood processing and distribution, as well as antique-style wood furniture manufacturing[18] - Revenue increased by 71% to approximately HK$175.1 million compared to HK$102.3 million in the previous period, driven by growth in wood-related business turnover from HK$96.9 million to HK$170.3 million[48][49] - Wood-related business segment revenue increased significantly to HKS 170,268 thousand in H1 2024 from HKS 96,938 thousand in H1 2023, a growth of 75.6%[141] Financial Performance and Metrics - Gross profit decreased by 30% to HK$15.5 million, with gross profit margin dropping from 21.6% to 8.9% due to market slowdown in wood-related business[50] - Cost of sales and services rendered increased by 99% to HK$159.6 million, primarily due to higher sales volume of wood products[50] - Administrative expenses rose by 45% to HK$14.8 million, while selling and distribution expenses decreased to HK$0.1 million[52][55] - Finance costs significantly reduced from HK$64.7 million to HK$1.2 million following the debt restructuring scheme effective in July 2023[53][57] - Cash and cash equivalents stood at HK$0.7 million as of 30 June 2024, down from HK$3.5 million at the end of 2023[53] - Bank and other borrowings increased to HK$17.9 million as of 30 June 2024, up from HK$14.1 million at the end of 2023[53] - Revenue for the six months ended 30 June 2024 increased to HK$175.09 million, up from HK$102.26 million in the same period in 2023, representing a growth of 71.2%[109] - Gross profit for the six months ended 30 June 2024 decreased to HK$15.52 million, down from HK$22.11 million in the same period in 2023, a decline of 29.8%[109] - Loss before tax for the six months ended 30 June 2024 was HK$552,000, significantly reduced from HK$53.40 million in the same period in 2023[109] - Loss for the period attributable to owners of the company was HK$2.36 million, compared to HK$58.21 million in the same period in 2023[109] - Total comprehensive income for the period was a loss of HK$2.29 million, compared to a loss of HK$63.79 million in the same period in 2023[110] - Total non-current assets as of 30 June 2024 were HK$24.94 million, down from HK$32.21 million as of 31 December 2023[111] - Total current assets as of 30 June 2024 were HK$66.95 million, down from HK$96.09 million as of 31 December 2023[111] - Total current liabilities as of 30 June 2024 were HK$128.57 million, down from HK$160.28 million as of 31 December 2023[112] - Net liabilities as of 30 June 2024 were HK$44.01 million, compared to HK$41.71 million as of 31 December 2023[112] - Capital deficiency as of 30 June 2024 was HK$44.01 million, compared to HK$41.71 million as of 31 December 2023[112] - The company reported a net cash used in operating activities of HK$4.267 million for the six months ended 30 June 2024, compared to a net cash generated from operating activities of HK$32.642 million in the same period in 2023[117] - The company's net cash generated from financing activities was HK$1.390 million for the six months ended 30 June 2024, a significant decrease from HK$16.496 million in the same period in 2023[118] - The company's cash and cash equivalents at the end of the period were HK$701 thousand, a sharp decline from HK$50.781 million at the end of the same period in 2023[118] - The company's total equity decreased to HK$44.005 million as of 30 June 2024, compared to HK$1.466 billion as of 30 June 2023[113][114] - The company's accumulated losses increased to HK$200.421 million as of 30 June 2024, compared to HK$2.596 billion as of 30 June 2023[113][114] - The company's foreign currency translation reserve decreased to HK$5.801 million as of 30 June 2024, compared to HK$642 thousand as of 30 June 2023[113][114] - The company's non-controlling interests decreased to HK$0 as of 30 June 2024, compared to HK$12.349 million as of 30 June 2023[113][114] - The company's share capital remained unchanged at HK$34.273 million as of 30 June 2024, compared to HK$68.515 million as of 30 June 2023[113][114] - The company's share premium remained unchanged at HK$127.944 million as of 30 June 2024, compared to HK$1.059 billion as of 30 June 2023[113][114] - The company's capital reserve decreased to HK$0 as of 30 June 2024, compared to HK$14.593 million as of 30 June 2023[113][114] - The Group incurred a loss of HK$2,361,000 for the six months ended 30 June 2024[138] - As of 30 June 2024, the Group had net current liabilities of approximately HK$61,621,000 and net liabilities of approximately HK$44,005,000[138] - The Group's bank and other borrowings amounted to approximately HK$17,913,000 as of 30 June 2024[138] - The Group's provision of claims amounted to approximately HK$47,612,000 as of 30 June 2024[138] - The Group's total cash and bank balances were approximately HK$701,000 as of 30 June 2024[138] - Total segment revenue for the group rose to HKS 175,090 thousand in H1 2024 from HKS 102,259 thousand in H1 2023, an increase of 71.2%[141] - Total assets decreased to HKS 91,894 thousand as of 30 June 2024 from HKS 128,298 thousand as of 31 December 2023, a reduction of 28.4%[142] - Total liabilities decreased to HKS 135,899 thousand as of 30 June 2024 from HKS 170,009 thousand as of 31 December 2023, a reduction of 20.1%[142] - Revenue from external customers in the PRC increased to HKS 157,247 thousand in H1 2024 from HKS 102,259 thousand in H1 2023, a growth of 53.7%[146] - Revenue from external customers in Hong Kong was HKS 17,843 thousand in H1 2024, compared to no revenue in H1 2023[146] - Non-current assets as of 30 June 2024 (unaudited) amounted to HK$24,944 million, compared to HK$32,210 million as of 31 December 2023 (audited)[147] - Revenue for the six months ended 30 June 2024 was HK$175,090 thousand, a significant increase from HK$102,259 thousand in the same period in 2023[150] - The Group recorded no customer contributing 10% or more of total revenue during the reporting period, compared to one such customer in the 2023 interim period[148][149] - Cost of inventories sold and services rendered for the six months ended 30 June 2024 was HK$159,488 thousand, more than double the HK$75,033 thousand in the same period in 2023[152] - The Group's loss before tax for the six months ended 30 June 2024 was HK$2,361,000, a significant improvement from the HK$58,210,000 loss in the same period in 2023[156] - Total tax charge for the six months ended 30 June 2024 was HK$1,809 thousand, compared to HK$4,807 thousand in the same period in 2023[153] - The Board did not recommend payment of an interim dividend for the six months ended 30 June 2024, consistent with the 2023 interim period[156] - Trade receivables decreased from HK$7,889,000 in December 2023 to HK$6,063,000 in June 2024, a reduction of 23.1%[157] - Allowance for expected credit losses (ECLs) remained unchanged at HK$2,532,000 from December 2023 to June 2024[157] - Trade receivables within 90 days decreased significantly from HK$3,705,000 in December 2023 to HK$1,173,000 in June 2024, a 68.3% drop[158] - Trade payables over 365 days increased sharply from HK$79,000 in December 2023 to HK$2,224,000 in June 2024, a 2715.2% increase[159] Business Diversification and Strategic Plans - The company is actively assessing the viability of business diversification, including opportunities in the functional food and beverage industry and the health and beauty industry in China[21] - The company is considering discontinuing the car rental business to allocate resources to more promising areas such as functional food and beverage, and health and beauty businesses[22] - The company is contemplating fundraising exercises to finance potential new business opportunities[22] - No definitive decisions or agreements have been reached regarding new business opportunities or potential fundraising exercises[23] - The company is exploring strategic cooperation opportunities with real estate developers, high-end furniture retailers, and logistics management service providers to expand its wood-related business[21] Debt Restructuring and Capital Reorganization - The company has implemented a court-supervised provisional liquidation regime in the Cayman Islands to facilitate financial restructuring[25] - The Company's authorized share capital is HK$200,000,000 divided into 20,000,000,000 New Shares of HK$0.01 each, and the issued and fully paid-up capital is HK$3,425,728.57 divided into 342,572,857 New Shares of HK$0.01 each following the Capital Reorganization[34] - The Investor conditionally agreed to subscribe for 2,260,980,856 New Shares at an issue price of HK$0.044 per share, totaling approximately HK$99.5 million[34][36] - The Scheme involves a Cash Bonus of HK$50,000,000 to be distributed proportionally to creditors with recognized claims[39] - The Capital Reorganization became effective on 17 May 2023 after fulfilling all conditions, including court approvals and stock exchange listing permissions[33] - The Scheme was approved by the requisite statutory majorities of creditors at the Scheme Meeting held on 11 March 2022[29][32] - The Funding Agreement dated 31 December 2020, providing financial support for the Company's business development, was sanctioned by the Cayman Court on 17 October 2022[30][32] - The Whitewash Waiver was granted by the SFC on 22 August 2022, conditional on no acquisition or disposal of voting rights by the Investor and its concert parties during the specified period[31][32] - The Scheme became unconditional after fulfilling all conditions, including the effectiveness of the Capital Reorganization and the unconditional status of the Investor's Subscription[37] - The company issued 823,739,687 new shares to creditors at a rate of 1 share per HK$1.80 of admitted claims, fully discharging all debts[43][47] - The company issued 2,260,980,856 new shares to investors at HK$0.044 per share as part of the restructuring agreement[47] - The company exited provisional liquidation on 14 June 2023 after successful debt restructuring and capital reorganization[45][46] - The Group completed the Capital Reorganisation on 17 May 2023[76] - The Group fulfilled the conditions precedent to the Investor's Subscription, which was completed on 11 July 2023[76] - The Group fulfilled the conditions precedent to the Scheme on 17 May 2023[78] - The Company fulfilled all resumption guidance and resumed trading of its shares on the Stock Exchange on 17 May 2023[79] - The Group will continue to take proactive measures to improve operating cash flow by controlling administrative costs and containing capital expenditure[79] - Management prepared cash flow projections covering at least twelve months from the date of the interim report, indicating sufficient working capital to meet financial obligations[79] - The company implemented a court-supervised provisional liquidation in the Cayman Islands to restructure its debts, appointing joint provisional liquidators (JPLs) on 2 February 2021[121] - A scheme of arrangement (the "Scheme") was approved by creditors on 11 March 2022, with the Hong Kong Court sanctioning the Scheme without modification on 22 March 2022[122] - The company entered into a conditional Restructuring Agreement on 16 February 2022, involving capital reorganisation, investor subscription, and the Scheme[122] - The Funding Agreement dated 31 December 2020, providing funding for business development, was sanctioned by the Cayman Court on 17 October 2022[123] - All resolutions related to the Capital Reorganisation, Investor's Subscription, Scheme, and Whitewash Waiver were passed at the extraordinary general meeting on 30 August 2022[124] - The Capital Reorganisation became effective on 17 May 2023 after fulfilling all conditions, including approval from the Cayman Court and the Stock Exchange Listing Committee[125] - The company's authorized share capital is HK$200,000,000, divided into 20,000,000,000 New Shares of HK$0.01 each, and the issued and fully paid-up capital is HK$3,425,728.57, divided into 342,572,857 New Shares of HK$0.01 each[127] - The investor conditionally agreed to subscribe for 2,260,980,856 New Shares at an issue price of HK$0.044 per New Share[127] - The investor's subscription became unconditional after fulfilling all precedent conditions, including the capital reorganization becoming effective and the listing committee's approval[128] - The scheme involves a cash bonus of HK$50 million to be distributed to creditors on a pro-rata basis[133] - The company allotted and issued up to 823,739,687 New Shares to creditors, with creditors receiving 1 New Share for every HK$1.80 of admitted claims[133] - The company announced it will become solvent upon completion of the capital reorganization, investor's subscription, and the scheme, eliminating imminent liquidity risk[134] - The company exited provisional liquidation on 14 June 2023 after the Cayman Court approved the withdrawal of the petition and discharge of the JPLs[134] - Completion of the investor's subscription took place on 11 July 2023, with 2,260,980,856 New Shares issued to the investor at HK$0.044 per share[135] - 823,739,687 New Shares were allotted and issued to China Wood Scheme Limited for distribution to creditors based on 1 New Share for every HK$1.80 of admitted claims[135] Share Capital and Ownership - Mr. Lyu NingJiang holds 226,098,085 shares, representing approximately 65.97% of the Company's issued share capital[82] - The total issued share capital of the Company as of 30 June 2024 was 342,729,340 shares[83] - Right Momentum holds a long position of 226,098,085 shares, representing 65.97% of the company's total issued share capital[85] - Integrated Capital (Asia) Limited and Yan Tak Cheung each hold a long position of 226,098,085 shares, representing 65.97% of the company's total issued share capital[85] - Sino Merchant Car Rental Limited holds a long position of 17,496,169 shares, representing 5.10% of the company's total issued share capital[85] - The total issued share capital of the company as of 30 June 2024 is 342,729,340 shares[87] - The existing share option scheme was adopted on 3 June 2016 and will remain in force until 2 June 2026[89] - Eligible participants under the Option Scheme include employees, executives, suppliers, customers, and shareholders of the company or its subsidiaries[90] - The subscription price for share options shall not be less than the highest of the closing price, the average closing price for the preceding five business days, or the nominal value of the shares[91] - Grantees must pay HK$1 as nominal consideration for the grant of options and must accept the offer within 21 days from the date of offer[92] - Options can be exercised at any time during a period determined by the Board, not exceeding ten years from the date of grant[92] - There is no minimum holding period or performance target required for the exercise of options under the Option Scheme[92] - The maximum number of shares available for issue under the Option Scheme is 3,240,687, representing 0.95% of the total number of shares in issue as of 30 June 2024[96][97] - No options were granted under the
中木国际(01822) - 2024 - 中期业绩