合丰集团(02320) - 2024 - 中期业绩

Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 107.8 million, representing a 1.51% increase from HKD 106.2 million in the same period of 2023[1] - EBITDA for the same period was a loss of HKD 16.9 million, a decrease of 39.6% compared to a loss of HKD 28.0 million in 2023[1] - The net loss for the period was HKD 43.7 million, down 26.1% from HKD 59.1 million in the previous year[1] - Gross profit for the six months was HKD 9.2 million, compared to HKD 4.3 million in the same period last year[3] - The pre-tax loss was HKD 44.7 million, improved from HKD 58.4 million in the previous year[3] - Basic and diluted loss per share was HKD 5.34, compared to HKD 7.22 in the same period of 2023[3] - Revenue increased from HKD 106,200,000 in H1 2023 to HKD 107,800,000 in H1 2024, representing a growth of 1.5% due to increased customer demand post-pandemic[27] - Gross profit rose from HKD 4,300,000 to HKD 9,200,000, with gross margin improving from 4.1% to 8.6% attributed to lower recurring expenses[27] - The company recorded a net loss of HKD 43,700,000 in H1 2024, an improvement from a net loss of HKD 59,100,000 in H1 2023[28] Debt and Financial Ratios - The debt ratio increased to 11.6% from 8.6%, while the net debt ratio rose to 5.0% from 3.0%[1] - Total bank borrowings increased to HKD 89,900,000 as of June 30, 2024, from HKD 72,800,000 at the end of 2023, with the debt ratio rising from 8.6% to 11.6%[30] - The current ratio improved to 1.22 as of June 30, 2024, compared to 0.84 at the end of 2023[29] Cash Flow and Assets - Cash and cash equivalents totaled HKD 50,900,000 as of June 30, 2024, up from HKD 47,300,000 at the end of 2023[29] - Total assets decreased to HKD 869.2 million from HKD 871.7 million at the end of 2023[4] Expenses and Cost Management - The group’s administrative expenses and financial costs totaled HKD 34,677,000 for the six months ended June 30, 2024, down from HKD 46,062,000 in the same period of 2023, representing a decrease of about 24.7%[10] - The group’s employee costs, including directors' remuneration, were HKD 19,574,000 for the six months ended June 30, 2024, compared to HKD 23,898,000 in the same period of 2023, indicating a reduction of approximately 18.1%[14] - The group’s depreciation of property, plant, and equipment was HKD 25,652,000 for the six months ended June 30, 2024, down from HKD 27,963,000 in the same period of 2023, reflecting a decrease of about 8.3%[14] Tax and Legal Matters - The company has a tax liability of approximately RMB 109,142,000 (equivalent to about HKD 127,057,000) due to tax issues related to VAT invoices from suppliers[20] - The administrative penalty imposed on the company amounts to approximately RMB 44,070,000 (around HKD 51,304,000) following the tax penalty decision[23] - The company is currently appealing against tax decisions that it believes lack factual and legal support, indicating ongoing legal proceedings[20] - As of the financial report date, the company is awaiting a review hearing from the Guangdong High People's Court regarding its tax matters[22] - The company has confirmed a tax guarantee procedure with the tax bureau as of March 23, 2023, related to a tax notification received[24] Operational Insights - The company anticipates a challenging operating environment in the corrugated packaging industry for H2 2024 due to rising manufacturing costs and weak market demand[31] - The company plans to focus on pricing power, increasing sales volume, improving production efficiency, and reducing energy use and material waste as key strategies moving forward[31] Employment and Staffing - As of June 30, 2024, the company employed approximately 240 full-time staff, a decrease from 246 at the end of 2023[32] Dividends and Shareholder Relations - The group did not declare or propose any dividends for the six months ended June 30, 2024, consistent with the previous year[15] - The company does not recommend the payment of an interim dividend for the six months ending June 30, 2024, consistent with the previous period[25] - The company expresses gratitude to shareholders and business partners for their support during the period[40] Future Reporting - The company will publish its interim report for the six months ending June 30, 2024, in September 2024[39]