Revenue and Profitability - Revenue for the six months ended June 30, 2024, was HKD 332,923, a decrease of 0.4% compared to HKD 334,287 in the same period of 2023[1] - Profit attributable to owners of the company decreased by 54.7% to HKD 3,426 from HKD 7,567 in the previous year[1] - Basic and diluted earnings per share were HKD 0.5, down from HKD 1.1 in the same period last year[4] - Total revenue from external customers for the six months ended June 30, 2024, was HKD 332,923,000, compared to HKD 334,287,000 for the same period in 2023, representing a slight decrease of 0.4%[14] - The segment performance for kitchen and household goods sales was HKD 9,582,000 for the six months ended June 30, 2024, down from HKD 12,474,000 in 2023, indicating a decline of 23.5%[14] - Other income and net profit decreased by approximately 51.7% to about HKD 3.7 million, primarily due to fair value losses on investment properties and reduced government subsidies[43] - Profit attributable to the company's owners decreased by approximately 54.7% to about HKD 3.4 million, primarily due to ongoing fair value losses on investment properties and increased tax expenses[47] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 471,634, compared to HKD 514,021 as of December 31, 2023[5] - Current liabilities decreased slightly to HKD 172,083 from HKD 174,180 at the end of 2023[6] - Non-current liabilities decreased to HKD 23,511 from HKD 25,536 at the end of 2023[6] - The company reported a net asset value of HKD 567,780 as of June 30, 2024, down from HKD 604,596 at the end of 2023[6] - The group reported a total liability of HKD 195,594,000 as of June 30, 2024, compared to HKD 199,716,000 as of December 31, 2023, showing a decrease of 2.2%[14] - The asset-liability ratio was approximately 22.4% as of June 30, 2024, compared to 21.0% as of December 31, 2023[56] Operational Performance - The company’s main business remains in the trading of kitchenware and household products, with no significant operational changes reported during the period[7] - The company continues to focus on investment holding and has maintained its primary business activities in retail, wholesale, and distribution[7] - The group has two operating segments: kitchen and household goods sales, and raw materials trading, with no inter-segment sales reported for the period[12][13] - The group did not adopt any new or revised Hong Kong Financial Reporting Standards that would have a significant impact on the financial statements during the interim period[11] Expenses and Costs - The group’s unallocated expenses for the six months ended June 30, 2024, were HKD (2,502,000), compared to HKD (3,118,000) for the same period in 2023, indicating a reduction of 19.7%[14] - Distribution expenses decreased by approximately 9.3% to about HKD 19.6 million, attributed to stricter cost control measures and reduced costs in mainland China due to RMB depreciation[44] - Employee benefits expenses totaled HKD 31,251,000, an increase from HKD 30,269,000 in the previous year[24] - The group’s research expenses decreased to HKD 108,000 in 2024 from HKD 1,018,000 in 2023, a decline of 89.4%[23] - Financing costs increased by approximately 8.9% to about HKD 3.6 million, mainly due to rising bank borrowing rates and increased use of short-term trade credit[46] Cash Flow and Financing - The group's cash and bank balances were approximately HKD 110.2 million as of June 30, 2024, down from HKD 155.8 million as of December 31, 2023[54] - Bank borrowings stood at approximately HKD 94.5 million as of June 30, 2024, compared to HKD 89.8 million as of December 31, 2023, with interest rates ranging from 3.13% to 6.48%[54] - The group recorded a cash outflow of approximately HKD 26.6 million from financing activities for the six months ended June 30, 2024, compared to HKD 12.1 million for the same period in 2023[55] - The group had bank financing available totaling approximately HKD 518.8 million as of June 30, 2024, with a utilization rate of about 18.2%[57] Investments and Future Plans - The company is preparing to contribute to growth driven by innovative technologies in the household goods sector, with plans to expand its product portfolio using advanced designs and eco-friendly materials[48] - The advanced manufacturing center's nano production line in the industrial estate has officially commenced operations, enhancing production efficiency and enabling the production of precision innovative products[48] - The company aims to strengthen its position as an industry leader by integrating advanced nano materials to enhance product functionality, durability, and performance[49] - The company is committed to building strong and long-term partnerships with stakeholders to explore new market opportunities, ensuring sustained value for shareholders[49] Employee Information - As of June 30, 2024, the total employee count was approximately 163, an increase from 154 as of June 30, 2023[50] - Total employee costs, including director remuneration, amounted to approximately HKD 31.3 million for the six months ended June 30, 2024, compared to HKD 30.3 million for the same period in 2023[50] Audit and Governance - The audit committee has reviewed the unaudited interim financial statements for the six months ending June 30, 2024, ensuring compliance with accounting principles and practices[64] - The board consists of two executive directors and four independent non-executive directors, maintaining a balance of power and authority[62] Dividends and Shareholder Returns - The group did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[28] - The company has not declared an interim dividend for the six months ending June 30, 2024, consistent with the previous period where no dividend was declared[65]
科劲国际(06822) - 2024 - 中期业绩