Financial Performance - The company reported a revenue of HKD 61,530,000 for the six months ended June 30, 2024, representing an increase of 66.5% compared to HKD 36,992,000 in the same period of 2023[2]. - Gross profit decreased to HKD 9,145,000, down 14.8% from HKD 10,720,000 year-on-year[2]. - Operating profit for the period was HKD 2,699,000, a decline of 18.9% from HKD 3,327,000 in the previous year[2]. - The net profit attributable to equity holders of the company was HKD 1,060,000, an increase of 38.4% compared to HKD 766,000 in the same period last year[2]. - The total comprehensive income for the period was HKD 1,009,000, significantly higher than HKD 370,000 in the previous year[3]. - Revenue from external customers for the six months ended June 30, 2024, was HKD 61,530,000, a significant increase from HKD 36,992,000 in the same period of 2023, representing a growth of 66.5%[12]. - Revenue from Asia (excluding China) reached HKD 41,274,000, up from HKD 12,925,000, marking a growth of 219.5%[12]. - The pre-tax profit for the six months ended June 30, 2024, was HKD 1,060,000, compared to HKD 766,000 for the same period in 2023, indicating a year-on-year increase of 38.4%[18]. - Basic earnings per share for the six months ended June 30, 2024, were HKD 1.31, up from HKD 0.95 in the same period of 2023, reflecting a growth of 37.9%[18]. Assets and Liabilities - The company’s total assets decreased slightly to HKD 108,373,000 as of June 30, 2024, from HKD 109,650,000 at the end of 2023[4]. - The company’s total assets in China were valued at HKD 92,816,000 as of June 30, 2024, down from HKD 96,698,000 as of December 31, 2023[13]. - Trade receivables, net of loss provisions, amounted to HKD 21,663,000 as of June 30, 2024, compared to HKD 25,529,000 as of December 31, 2023, indicating a decrease of 15.5%[22]. - Trade and bills payables totaled HKD 7,903,000 as of June 30, 2024, down from HKD 9,914,000 as of December 31, 2023, reflecting a decrease of 20.3%[24]. - As of June 30, 2024, the outstanding bank loans amount to HKD 54,762,000, a slight increase from HKD 53,828,000 at the beginning of the period[25]. - The company’s total liabilities included finance costs of HKD 1,602,000 for the six months ended June 30, 2024, compared to HKD 2,560,000 in the same period of 2023[15]. Cash Flow - Cash and cash equivalents increased to HKD 38,929,000 at the end of the reporting period, up from HKD 35,133,000 at the end of the previous year[6]. - The company generated a net cash inflow from operating activities of HKD 6,456,000, compared to HKD 6,690,000 in the same period last year[6]. - As of June 30, 2024, the company held cash and bank balances of HKD 38,900,000, an increase from HKD 33,500,000 as of December 31, 2023[41]. - The company has provided guarantees for bank financing of HKD 88,279,000 as of June 30, 2024, with HKD 54,762,000 drawn down[31]. Dividends - The company did not declare any dividends for the reporting period[2]. - The company did not declare an interim dividend for the six months ended June 30, 2024, similar to the previous year, but proposed a special dividend of HKD 0.0751 per share[18]. - The board proposed a special dividend of HKD 0.0751 per share, which was approved at a special general meeting on August 16, 2024[47]. Management and Governance - The company has adhered to the corporate governance code, with the exception of the separation of roles between the Chairman and CEO, which are held by the same individual, Mr. Song Kaiqing[50]. - The Audit Committee, consisting of three independent non-executive directors, has reviewed the unaudited interim financial statements for the six months ending June 30, 2024[52]. - The company has established a Remuneration Committee to recommend policies regarding the remuneration of all directors and senior management, comprising three independent non-executive directors[53]. - The Nomination Committee has been formed to provide recommendations on the appointment and succession planning of directors, consisting of five members[54]. - The interim financial results have been reviewed by the Audit Committee but remain unaudited[55]. - The board includes two executive directors and three independent non-executive directors, ensuring a diverse governance structure[58]. Strategic Focus - The company has successfully increased sales in Japan during the review period, indicating a strategic focus on overseas markets[34]. - The company plans to enhance research and development and promote new products through exhibitions to adapt to market trends[40]. - The company has suspended its higher-margin promotional business as of March 2024, focusing instead on expanding its export sales[36]. - The company has no significant investments, acquisitions, or disposals of subsidiaries or joint ventures other than the sale of Success Profit International Limited for HKD 62,000,000[44]. Other Financial Information - The total tax losses accumulated as of June 30, 2024, amounted to HKD 70,274,000, slightly increasing from HKD 69,345,000 as of June 30, 2023[17]. - The company reported a net loss from foreign exchange of HKD 287,000 for the six months ended June 30, 2024, compared to a loss of HKD 3,213,000 in the same period of 2023, showing an improvement[15]. - The total net book value of properties and land use rights as of June 30, 2024, is HKD 19,833,000, a decrease from HKD 22,127,000 at the beginning of the period, with depreciation totaling HKD 1,978,000[21]. - The aging analysis of trade receivables shows that HKD 20,372,000 is within 3 months, up from HKD 12,598,000 in the previous year, representing a significant increase of 61.5%[23]. - The total remuneration for key management personnel for the six months ended June 30, 2024, is HKD 1,304,000, a decrease from HKD 1,349,000 in the previous year[32]. - The company has capital commitments of HKD 107,000 for the acquisition of properties, plants, and equipment as of June 30, 2024[30]. - The company has not applied any new accounting standards or interpretations that have not yet come into effect during the accounting period[2].
兴利(香港)控股(00396) - 2024 - 中期业绩