Financial Performance - For the six months ended June 30, 2024, the group's revenue was HKD 280.8 million, an increase of 23.6% compared to HKD 227.2 million for the same period in 2023[2] - Gross profit for the same period was HKD 32.1 million, up 3.2% from HKD 31.1 million in 2023, primarily due to increased customer orders and sales volume[2] - The group reported a loss attributable to equity holders of HKD 12.2 million, compared to a loss of HKD 4.5 million in 2023, with a basic and diluted loss per share of HKD 1.35[3] - The gross margin decreased from 13.7% to 11.4%, attributed to reduced sales volume from the manufacturing facility in Heshan and one-time restructuring costs related to the facility's suspension[3] - Revenue for the six months ended June 30, 2024, was HKD 280,835,000, an increase of 23.6% compared to HKD 227,218,000 for the same period in 2023[22] - The company reported a loss before tax of HKD 12,168,000 for the six months ended June 30, 2024, compared to a loss of HKD 4,518,000 in the prior year, reflecting a significant increase in losses[22] - The company reported a net loss per share of HKD 0.52 for the six months ended June 30, 2024, compared to a loss of HKD 0.17 in the same period last year[22] - The company’s total equity decreased to HKD 165,277,000 as of June 30, 2024, down from HKD 177,844,000 at the end of 2023, indicating a decline in shareholder value[24] Revenue Segmentation - The apparel manufacturing and trading segment contributed 86.3% of total revenue, amounting to HKD 242.4 million, up from 83.3% and HKD 189.2 million in 2023[4] - The revenue from garment manufacturing and trading was HKD 280,835,000, which accounted for the majority of total revenue, with no contribution from securities investments during this period[28] Operational Changes - The group increased its production orders allocated to overseas subcontractors, resulting in products manufactured in Southeast Asia rising to 96.0% from 77.0% in 2023[4] - The company has 214 full-time employees as of June 30, 2024, a decrease from 400 employees as of December 31, 2023, due to strategic plans to streamline operations in Heshan[17] - The management team has ceased production in mainland China and is exploring opportunities to collaborate with new manufacturing partners or invest in new factories in other countries[19] Expenses and Costs - Administrative and other operating expenses rose by 22.2% to HKD 35.2 million, mainly due to one-time restructuring costs of approximately HKD 3.9 million related to the Heshan facility[6] - Financing costs increased by 30.8% to HKD 5.1 million, primarily due to higher interest expenses[8] - The company’s financing income increased to HKD 542,000 from HKD 423,000, while financing expenses rose to HKD 5,129,000 from HKD 3,919,000, indicating higher borrowing costs[22] Asset Management - Total assets as of June 30, 2024, were HKD 295,643,000, compared to HKD 279,297,000 as of December 31, 2023, showing a growth in asset base[23] - Current assets increased to HKD 235,031,000 from HKD 216,025,000, primarily driven by an increase in cash and bank balances[23] - Trade receivables as of June 30, 2024, amounted to HKD 26,768,000, up from HKD 23,451,000 as of December 31, 2023[37] - Trade payables increased to HKD 41,249,000 as of June 30, 2024, compared to HKD 35,264,000 as of December 31, 2023[39] Market Conditions - The economic outlook remains uncertain, with geopolitical risks affecting the company's performance as an exporter to Europe and the US[19] - Global inflation is a significant concern, with rising consumer price indices putting pressure on the business environment[20] - The company will continue to monitor macroeconomic factors and adjust its business strategies accordingly to seek sustainable long-term growth[20] - The company will closely monitor foreign exchange rate fluctuations and establish foreign currency forward contracts as necessary to mitigate risks[12] Corporate Governance - The company has adhered to all corporate governance codes as of June 30, 2024, except for the non-compliance with code C.2.1[44] - Following the dismissal of Ms. Ma, the board of directors is now of a single gender, which does not comply with listing rule 13.92[45] - The company appointed Ms. Zhao as an independent non-executive director on May 7, 2024, restoring compliance with several listing rules[45] - The board believes that despite the absence of a chairman and CEO, the current structure allows for effective decision-making and management oversight[44] Dividend Policy - The company will not declare an interim dividend for the six months ending June 30, 2024, compared to no dividend declared in 2023[21] - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024[41] Future Reporting - The mid-term report for the six months ending June 30, 2024, will be published on the company's website and sent to shareholders at an appropriate time[47]
恒富控股(00643) - 2024 - 中期业绩