Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 148,322 thousand, a decrease of 39.2% compared to HKD 243,887 thousand in 2023[1] - Gross profit for the same period was HKD 58,134 thousand, down 20.8% from HKD 73,372 thousand in 2023, with a gross margin of 39.2%[1] - Loss attributable to shareholders for the six months was HKD (14,972) thousand, compared to HKD (11,508) thousand in 2023, representing an increase of 30.1%[1] - Basic and diluted loss per share was HKD (1.50), compared to HKD (1.15) in 2023, reflecting a 30.1% increase[1] - The company reported a total comprehensive loss of HKD (27,801) thousand for the period, compared to HKD (38,266) thousand in 2023[4] - The adjusted profit for the six months ended June 30, 2024, was approximately HKD 850,000, down from HKD 8,380,000 in the same period of 2023, primarily due to the decline in sales and increased legal and professional fees[41] Revenue Breakdown - For the six months ended June 30, 2024, the total revenue from the paint products segment was HKD 137,044,000, while the property investment segment generated HKD 11,278,000, resulting in a total revenue of HKD 148,322,000[12] - Revenue from paint products for the six months ended June 30, 2024, was HKD 137,044,000, down 41.4% from HKD 233,886,000 in 2023[21] - For the six months ended June 30, 2023, the total revenue from the paint products segment was HKD 233,886,000, while the property investment segment generated HKD 10,001,000, resulting in a total revenue of HKD 243,887,000[15] - Sales revenue from paint and coating products decreased by 41.4% compared to the same period in 2023, significantly impacting gross profit, which fell by 26.1%[40] Assets and Liabilities - Cash and cash equivalents, along with pledged deposits, totaled HKD 184,046 thousand, a decrease of 24.6% from HKD 243,937 thousand in 2023[1] - Non-current assets amounted to HKD 458,699 thousand, down from HKD 476,431 thousand in 2023[5] - Total liabilities decreased to HKD 126,065 thousand from HKD 142,749 thousand in 2023[6] - The total equity attributable to shareholders was HKD 416,637 thousand, down from HKD 444,465 thousand in 2023[6] - As of June 30, 2024, total assets amounted to HKD 858,123,000, with segment assets for paint products at HKD 527,988,000 and property investment at HKD 325,372,000[12] - The total liabilities as of June 30, 2024, were HKD 437,075,000, with segment liabilities for paint products at HKD 393,355,000 and property investment at HKD 41,374,000[12] Cash Flow and Expenditures - Capital expenditures for the six months ended June 30, 2024, were HKD 42,000, primarily for the acquisition of property, plant, and equipment[13] - The group acquired property, plant, and equipment at a cost of HKD 42,000 for the six months ended June 30, 2024, a significant decrease from HKD 2,737,000 for the same period in 2023[30] - The group received government subsidies totaling HKD 408,000 for advanced manufacturing tax reductions during the six months ended June 30, 2024[23] Market Conditions - The overall GDP growth rate in mainland China decreased from 5.5% in the first half of 2023 to 5.0% in the first half of 2024, largely due to the ongoing difficulties in the real estate sector[42] - Sales to construction and renovation contractors decreased by HKD 52,430,000, representing a 71.4% decline compared to the same period in 2023, attributed to the downturn in the real estate market[43] - The company experienced a 31.3% decline in sales to wholesale and retail distributors, reflecting the challenging market environment[44] - Sales to contractors for private residential property developers in mainland China dropped by 87.9% to HKD 6,540,000, reflecting a significant downturn in the real estate market[48] Cost Management - The cost of sold inventory for the six months ended June 30, 2024, was HKD 90,188,000, a decrease of 47.1% from HKD 170,515,000 in 2023[25] - Selling and distribution expenses decreased by 16.9% to HKD 28,990,000, while administrative expenses fell by 17.2% to HKD 34,830,000, reflecting cost-saving measures implemented during the year[61] - Direct and indirect labor costs reduced by 27.5% to HKD 9,210,000, attributed to successful cost-saving strategies[57] Shareholder Information - The loss attributable to equity holders of the parent company for the period was HKD 14,972,000, compared to a loss of HKD 11,508,000 for the six months ended June 30, 2023, with a weighted average of 1,000,000,000 shares outstanding[28] - No interim dividend was declared for the six months ended June 30, 2024, consistent with the previous period[29][38] Corporate Governance - The board is committed to maintaining good corporate governance practices and has adhered to the corporate governance code[74] - The company has adopted a code of conduct for directors' securities transactions, ensuring compliance with the required standards[76]
中漆集团(01932) - 2024 - 中期业绩