Financial Performance - Total revenue for the six months ended June 30, 2024, increased by approximately 19.00% to HKD 110.1 million, compared to HKD 92.6 million for the same period in 2023[1] - The net loss attributable to owners of the company for the six months ended June 30, 2024, was approximately HKD 17.1 million, an improvement from a net loss of approximately HKD 19.5 million for the same period in 2023[1] - Basic loss per share for the six months ended June 30, 2024, was HKD 2.68, compared to HKD 3.04 for the same period in 2023[1] - Gross profit for the six months ended June 30, 2024, was HKD 16.2 million, up from HKD 12.4 million in the same period in 2023[2] - The company reported a total cost of sales of HKD 93.9 million for the six months ended June 30, 2024, compared to HKD 80.2 million for the same period in 2023[2] - Other income amounted to HKD 1,533,000 for the six months ended June 30, 2024, up from HKD 1,344,000 in the same period of 2023, reflecting a 14% increase[12] - The pre-tax loss was HKD 93,827,000 for the six months ended June 30, 2024, compared to HKD 80,194,000 for the same period in 2023, indicating a 17% increase in losses[13] - The total income tax expense for the six months ended June 30, 2024, was HKD 47,000, compared to a tax benefit of HKD 3,421,000 for the same period in 2023[14] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 267.1 million, a decrease from HKD 284.6 million as of December 31, 2023[3] - Total liabilities as of June 30, 2024, were HKD 8.6 million, compared to HKD 8.9 million as of December 31, 2023[5] - Cash and cash equivalents as of June 30, 2024, were HKD 57.9 million, down from HKD 60.7 million as of December 31, 2023[3] - The company’s total equity as of June 30, 2024, was HKD 258.5 million, down from HKD 275.7 million as of December 31, 2023[5] - Trade receivables amounted to HKD 31,745,000 as of June 30, 2024, significantly higher than HKD 13,520,000 as of December 31, 2023, indicating a 134% increase[18] - Trade payables increased to HKD 30.04 million as of June 30, 2024, from HKD 12.02 million as of December 31, 2023[20] - As of June 30, 2024, the net current assets amounted to approximately HKD 122.8 million, a decrease from HKD 132.0 million as of December 31, 2023[26] - The bank borrowings were approximately HKD 28.7 million as of June 30, 2024, slightly down from HKD 29.0 million as of December 31, 2023[26] - The capital debt ratio as of June 30, 2024, was 11.39%, a decrease from 11.76% as of December 31, 2023[27] Operational Highlights - The company was established on November 3, 2017, in the Cayman Islands and listed on the Hong Kong Stock Exchange on July 16, 2018[6] - The company's primary business activity is the manufacturing and sale of cattle fabric[6] - The company’s main product, elastic blended denim, accounted for 93.0% of total sales, up from 85.7% in the first half of 2023[24] - A new production line was developed in collaboration with a Vietnamese contractor, aimed at increasing order potential from customers considering the "China Plus One" business model[23] - The company successfully secured a property renovation project in Shanghai, marking its first project in China, which is expected to contribute to future growth[24] - The group purchased manufacturing and office equipment for approximately HKD 410,000 for the six months ended June 30, 2024, down from HKD 1,202,000 for the same period in 2023[17] - The group had 347 employees as of June 30, 2024, an increase from 317 employees as of December 31, 2023[28] - Capital expenditures during the interim period were approximately HKD 0.4 million, significantly lower than HKD 1.2 million in the first half of 2023[29] Compliance and Governance - The financial statements for the six months ending June 30, 2024, were prepared in accordance with Hong Kong Financial Reporting Standards[7] - The accounting policies adopted for the interim financial data are consistent with those applied in the annual consolidated financial statements for the year ended December 31, 2023[9] - The company reported no significant impact on its financial position or performance from the adoption of revised Hong Kong Financial Reporting Standards[9] - The company has adopted the Listing Rules Appendix C3 regarding the standards for directors' securities trading, confirming compliance from January 1, 2024, to the announcement date[36] - The company has applied and adhered to all provisions of the Corporate Governance Code as of June 30, 2024, up to the announcement date[37] - The Audit Committee, consisting of three independent non-executive directors, has been established to review and supervise the financial reporting process, with the latest meeting focusing on the performance for the six months ending June 30, 2024[38] Shareholding Structure - As of the announcement date, each director and the highest executive officer holds 480,000,000 shares in the company, representing a 75% equity interest[39] - The company is controlled by Wan Feng Investment Holdings Limited, which owns 75% of the issued share capital[43] - Wan Feng Investment is owned 30% by the late Mr. Dong Xin Kang, 20% each by Mr. Dong Wei Ting and Mr. Dong Zhuo Ming, and 10% each by Mrs. Dong Tai Tai, Ms. Dong Hui Ling, and Ms. Dong Hui Li, all of whom have entered into a concert party agreement[43] - Major shareholder Wan Fung Investment holds 480 million shares, representing 75% ownership[45] Future Outlook - The global denim market is projected to grow at a compound annual growth rate of approximately 7.5% from 2024 to 2030, driven by various factors including fashion trends and innovative manufacturing practices[33] - Management plans to enhance business momentum through continuous innovation and strengthening relationships with key customers[34] - The group has successfully leased most of its property in Tsuen Wan, which serves as a source of passive income, and is exploring opportunities to expand its business portfolio[33] Miscellaneous - The company has not experienced any significant events from June 30, 2024, to the announcement date[47] - The interim report for the six months ending June 30, 2024, will be published in accordance with listing rules and applicable laws[48]
兴纺控股(01968) - 2024 - 中期业绩