Financial Performance - Total revenue for the six months ended June 30, 2024, was HKD 124,737,000, a decrease of 22.9% compared to HKD 161,894,000 for the same period in 2023[1] - Gross profit for the period was HKD 5,060,000, significantly down from HKD 34,063,000 in the previous year, indicating a decline in profitability[1] - The company reported a loss before tax of HKD 19,764,000 for the six months ended June 30, 2024, compared to a profit of HKD 21,394,000 in the same period of 2023[1] - The net loss attributable to equity holders for the period was HKD 19,764,000, compared to a profit of HKD 11,833,000 in the previous year[2] - The basic and diluted loss per share for the period was HKD 6.81, compared to earnings of HKD 4.08 per share in the previous year[2] - The company reported a pre-tax loss of HKD 19,764 thousand for the six months ended June 30, 2024, compared to a pre-tax profit of HKD 21,394 thousand for the same period in 2023[6][10] - The loss attributable to equity holders for the six months ended June 30, 2024, was HKD 19,764 thousand, resulting in a basic and diluted loss per share of HKD 0.068[12] Assets and Liabilities - The company’s total assets decreased to HKD 236,873,000 as of June 30, 2024, down from HKD 252,538,000 at the end of 2023[3] - Current liabilities increased to HKD 235,393,000, resulting in a negative net current liabilities position of HKD 87,823,000[3] - The company’s total borrowings, including bank loans and lease liabilities, amounted to approximately HKD 218,099,000, with a significant portion due within the next twelve months[4] - The company’s cash and cash equivalents decreased to HKD 46,054,000 from HKD 61,952,000 at the end of 2023, indicating a liquidity challenge[3] - The group’s debt-to-equity ratio as of June 30, 2024, was 175.6, significantly higher than 6.5 as of December 31, 2023[24] - The group’s lease liabilities increased to approximately HKD 83.1 million as of June 30, 2024, from HKD 74.9 million as of December 31, 2023[31] Revenue Breakdown - The segment revenue for cold storage and related services was HKD 100,998 thousand, while food and beverage trading and sales generated HKD 23,612 thousand, totaling HKD 124,610 thousand for the current period[6] - Revenue from cold storage and related services decreased from HKD 104,585 thousand in 2023 to HKD 88,840 thousand in 2024, reflecting a decline of 15.0%[8] - Revenue from food and beverage trading and sales in mainland China decreased by approximately 45.0%[16] - Revenue from frozen warehouse and related services decreased by approximately 14.9% due to a competitive macroeconomic environment[16] - The company’s operations in Hong Kong generated HKD 101,125 thousand in revenue, while operations in China contributed HKD 23,612 thousand for the six months ended June 30, 2024[7] Cost Management and Strategy - The company has implemented strict cost control measures to maintain profitability in its food and beverage trading and sales division[20] - The company plans to diversify its customer base to capture greater demand for warehousing and logistics services[18] - The group aims to enhance its core frozen warehouse and logistics business by expanding its customer base and providing value-added services[22] - The group is focused on optimizing its product mix and pricing strategies to enhance profitability in the food and beverage distribution business in mainland China[23] Operational Changes - The company has reclassified the loan services segment as a non-reportable segment, indicating a strategic shift towards more profitable divisions[5] - The company has decided not to renew the agreement for its Tsing Yi warehouse and will transfer all customers to the Kwai Hing warehouse, which is expected to enhance overall utilization and save costs[18] - The company is actively seeking strategic partners to establish joint ventures, expecting substantial progress in the next six months[22] Employee and Governance - As of June 30, 2024, the total number of full-time employees in Hong Kong and mainland China was approximately 160 and 30, respectively, compared to 170 and 40 a year earlier[34] - Employee-related costs for the six months ended June 30, 2024, totaled approximately HKD 33,696,000, slightly down from HKD 33,967,000 for the same period last year[34] - The board consists of executive directors, non-executive directors, and independent non-executive directors, ensuring a diverse governance structure[43] - The board believes that the current risk management and internal control systems are adequate and effective, with no identified weaknesses as of June 30, 2024[41] Audit and Compliance - The audit committee reviewed the unaudited consolidated results for the six months ended June 30, 2024, and confirmed compliance with applicable accounting standards and regulations[40] - The company has engaged an independent consultant to evaluate the adequacy and effectiveness of its risk management and internal control systems[41] Dividends and Securities - The company did not declare any dividends for the current interim period, consistent with the previous year[11] - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[35] - No purchases, sales, or redemptions of the company's listed securities occurred during the six months ended June 30, 2024[36] Future Outlook - The company anticipates gradual recovery in its frozen warehouse and logistics business in Hong Kong and food and beverage distribution in mainland China due to government economic stimulus measures[21] - The company has no specific future plans for significant investments or capital assets as of June 30, 2024[32] - The company will publish its mid-term report containing all required information in due course[42]
大同集团(00544) - 2024 - 中期业绩