Financial Performance - The company reported a revenue of HKD 1,095,702, a decrease of 8.2% compared to HKD 1,192,964 in the same period last year[1]. - Gross profit for the six months ended June 30, 2024, was HKD 153,064, down 26.0% from HKD 206,435 in the previous year[1]. - The operating loss for the period was HKD 8,500, a significant decline from an operating profit of HKD 115,065 in the prior year[1]. - The net loss attributable to equity holders of the company was HKD 7,622, compared to a profit of HKD 79,972 in the same period last year[2]. - Total comprehensive loss for the period amounted to HKD 56,317, contrasting with a total comprehensive income of HKD 37,706 in the previous year[2]. - Cash outflow from operating activities was HKD 142,038, compared to an inflow of HKD 53,419 in the same period last year[6]. - The group reported a loss before tax of HKD 10,882,000 for the six months ended June 30, 2024, compared to a profit before tax of HKD 111,618,000 in the previous period[12]. - The group achieved a net profit of HKD 79,972,000 for the six months ended June 30, 2024, compared to a net loss of HKD 7,622,000 in the same period of 2023[10]. Assets and Liabilities - The company's total assets decreased to HKD 3,115,229 from HKD 3,253,095 as of December 31, 2023[5]. - Current liabilities increased to HKD 465,487 from HKD 558,118 in the previous year[5]. - Trade receivables increased to HKD 591.122 million as of June 30, 2024, compared to HKD 568.137 million at the end of 2023[19]. - Trade payables rose to HKD 166.407 million as of June 30, 2024, compared to HKD 112.909 million at the end of 2023[22]. - The group’s asset-to-liability ratio improved to 3.1% in 2024, down from 5.1% in 2023, following a reduction in bank loans to HKD 93 million[29]. Operational Highlights - The company has not disclosed any new product developments or market expansion strategies in the current report[1]. - The group’s revenue from the book and packaging printing business was HKD 866,777,000, while the consumer products packaging business generated HKD 150,726,000 for the six months ended June 30, 2024[10]. - The group recognized a gain from the sale of properties, plant, and equipment amounting to HKD 89,572,000 during the reporting period[12]. - The group invested over HKD 28 million in capital projects during the review period, with an additional commitment of HKD 24 million for expanding and upgrading existing capacity[29]. - The group’s new Wuxi plant has commenced full operations, expected to significantly enhance printing capacity and cost competitiveness in the consumer products packaging business[27]. Employee and Training - As of June 30, 2024, the company employed approximately 5,600 staff across Hong Kong, mainland China, and Vietnam, providing over 94,252 hours of training in the past six months[31]. - The group reported a decrease in employee benefit expenses, totaling HKD 295,739,000 for the six months ended June 30, 2024, compared to HKD 326,057,000 in the previous year[12]. Sustainability and Development - The sustainable development initiatives earned the highest award from a renowned German printing equipment supplier, highlighting the group's commitment to carbon neutrality[25]. - The company successfully recycled 97% of production waste, including 14,351 tons of paper, 164 tons of plastic, and 130 tons of metal, with non-recyclable waste totaling 439 tons[30]. - The company plans to expand solar energy capacity to 8,809 kW, with current generation at 2,556,069 kWh, offsetting approximately 959 tons of carbon emissions[30]. Market Challenges - The company faced challenges due to rising freight costs and cautious consumer spending, impacting market demand[24]. - The absence of a one-time gain of HKD 90 million from land acquisition in Wuxi, China, contributed to the current period's loss[24]. - The overall profit contribution for 2024 dropped to HKD 26.4 million due to declining sales and surging logistics costs[27]. Corporate Governance - The company has adhered to the corporate governance code during the reporting period, with the exception of the separation of roles between the Chairman and the CEO, which are held by the same individual, Mr. Ren Zeming[38]. - The company has adopted a standard code for securities trading by directors, and all directors have complied with this code during the reporting period[39]. - The audit committee has reviewed the interim financial results for the six months ending June 30, 2024, and discussed audit, internal control, and financial reporting matters[40]. Dividends and Shareholder Information - The company declared an interim dividend of HKD 0.04 per share, consistent with the previous year[24]. - The company will suspend share transfer registration from September 23 to September 26, 2024, to ensure eligibility for the interim dividend[36].
鸿兴印刷集团(00450) - 2024 - 中期业绩