Financial Performance - For the six months ended June 30, 2024, revenue was approximately HKD 111.7 million, an increase of about HKD 10.9 million or approximately 10.8% compared to HKD 100.8 million in the same period last year[1] - Gross profit for the same period was approximately HKD 82.7 million, an increase of about HKD 12.9 million or approximately 18.5% from HKD 69.8 million year-on-year[1] - Profit for the period was approximately HKD 49.9 million, up by about HKD 11.5 million or approximately 29.9% compared to HKD 38.4 million in the previous year[1] - The company reported a gross margin of approximately 74.1% for the six months ended June 30, 2024, compared to 69.2% in the same period last year[2] - The company’s earnings per share for the period was HKD 0.05, compared to HKD 0.04 in the same period last year[2] - The company reported a basic earnings per share of HKD 0.05 for the six months ended June 30, 2024, compared to HKD 0.04 for the same period in 2023, an increase of 25%[14] - Net profit for the period increased by approximately HKD 11.5 million or about 29.9% to approximately HKD 49.9 million[35] - Earnings per share increased to HKD 0.05 from HKD 0.04, primarily due to an increase in net profit attributable to shareholders[36] Revenue Sources - The wastewater treatment service revenue was HKD 53,495,000 for the six months ending June 30, 2024, compared to HKD 42,124,000 for the same period in 2023, indicating a growth of approximately 26.9%[9] - The financial income from the special service arrangement was HKD 58,176,000 for the six months ending June 30, 2024, slightly down from HKD 58,711,000 in the same period of 2023, reflecting a decrease of about 0.9%[9] - The increase in revenue was primarily due to an increase of approximately HKD 11.4 million in revenue from wastewater treatment operations, representing a growth of approximately 27.1%[27] - All revenue during the period came from customers in China[11] Assets and Liabilities - The total assets as of June 30, 2024, were HKD 2,202.3 million, a decrease from HKD 2,241.3 million as of December 31, 2023[4] - Total liabilities as of June 30, 2024, were HKD 825.6 million, down from HKD 882.0 million as of December 31, 2023[5] - The company’s cash and cash equivalents decreased to HKD 49.96 million from HKD 89.97 million year-on-year[4] - The total liabilities, including long-term and short-term borrowings, were HKD 660,368 as of June 30, 2024, down from HKD 713,157 in the previous year, a decrease of approximately 7.4%[20] - As of June 30, 2024, the group's cash and bank balance decreased by approximately HKD 40.0 million or about 44.4% to approximately HKD 50.0 million from HKD 90.0 million on December 31, 2023[39] - The group's bank borrowings as of June 30, 2024, amounted to approximately HKD 660.4 million, a decrease of about HKD 52.8 million or approximately 7.4% from HKD 713.2 million on December 31, 2023[40] - The debt-to-asset ratio as of June 30, 2024, was approximately 44.3%, down from approximately 45.8% on December 31, 2023[42] Operational Insights - The company aims to expand its market presence and enhance its service offerings in the upcoming quarters[1] - The company is focusing on new product development and technological advancements to drive future growth[1] - The company plans to focus on expansion and upgrades of wastewater treatment facilities in the second half of 2024, including new basic water volume agreements with local authorities[25] - The company is exploring potential acquisition opportunities for wastewater treatment assets in Ningxia and other regions in China to strengthen its market presence[26] - The company is committed to optimizing costs and enhancing the efficiency of wastewater treatment plants in accordance with the standards set in the concession agreements with the local government[25] Financial Management - The board believes that the group has sufficient operating funds to meet its financial obligations due within the next twelve months[6] - The group continues to adopt a going concern basis in preparing its interim financial information[6] - The board has assessed that the adoption of new accounting standards and interpretations will not have a significant impact on the group's performance and financial position[7] - The group is currently evaluating the impact of new accounting standards that will be mandatory from January 1, 2025, and beyond[8] - The group expects to generate positive cash flows from its business operations, including the collection of trade receivables and other receivables[6] Cost Management - Financing costs decreased by approximately HKD 2.5 million during the reporting period, contributing to the increase in after-tax profit[24] - Sales cost decreased by approximately HKD 2.0 million or about 6.5% to approximately HKD 29.0 million for the six months ended June 30, 2023[28] - General and administrative expenses decreased by approximately HKD 0.4 million or about 5.9% to approximately HKD 6.4 million, mainly due to reduced employee benefits expenses[32] - Financing costs decreased by approximately HKD 2.5 million or about 14.6% to approximately HKD 14.6 million, primarily due to lower borrowing interest expenses[33] Taxation and Other Income - Immediate income tax expense increased to HKD 8,777 from HKD 5,132 year-over-year, a rise of approximately 71.5%[12] - Income tax expenses increased by approximately HKD 4.1 million or about 49.4% to approximately HKD 12.4 million, with an effective tax rate rising from 17.7% to 19.9%[34] - Other income decreased by approximately HKD 0.2 million or about 18.2% to approximately HKD 0.9 million, mainly due to a reduction in interest income[30] - Net other losses increased by approximately HKD 0.05 million or about 23.8% to approximately HKD 0.26 million, primarily due to unfavorable currency fluctuations[31] Corporate Governance - The group has adhered to the corporate governance code as per the listing rules during the reporting period[45] - The audit committee has reviewed the group's unaudited interim results for the reporting period[47] - The group has no significant contingent liabilities or unresolved litigation as of June 30, 2024[44] - The board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[44] - There are no significant subsequent events reported after the reporting period[49] - The company has not engaged in any purchase, sale, or redemption of its listed securities during the reporting period[50]
达力环保(01790) - 2024 - 中期业绩