Financial Performance - For the six months ended June 30, 2024, the company reported revenue of HKD 68,611,000, a decrease of 7.8% compared to HKD 74,056,000 for the same period in 2023[1]. - The gross profit for the period was HKD 14,660,000, down from HKD 21,555,000 in the previous year, reflecting a decline of 31.9%[1]. - The company recorded a loss before tax of HKD 19,264,000, compared to a loss of HKD 10,774,000 in the same period last year, indicating a significant increase in losses[1]. - Total comprehensive loss for the period was HKD 19,715,000, compared to HKD 11,635,000 in the previous year, representing an increase of 69.5%[2]. - Basic and diluted loss per share was HKD 5.45, compared to HKD 3.13 for the same period in 2023, reflecting a 74.0% increase in loss per share[2]. - The company reported a consolidated loss before tax of HKD 19,264,000 for the six months ended June 30, 2024, compared to a loss of HKD 10,774,000 for the same period in 2023, indicating a significant increase in losses[12]. - The company reported a loss attributable to shareholders of approximately HKD 17,806,000 for the period, compared to a loss of HKD 10,246,000 in the previous year[23]. - The basic and diluted loss per share was HKD 0.0545, compared to a loss of HKD 0.0313 in 2023[23]. Assets and Liabilities - Non-current assets decreased to HKD 26,192,000 from HKD 26,470,000 as of December 31, 2023, showing a slight decline[3]. - Current assets decreased to HKD 68,740,000 from HKD 89,423,000, indicating a reduction of 23.1%[3]. - The company's total equity decreased to HKD 53,457,000 from HKD 74,661,000, reflecting a decline of 28.4%[4]. - The total assets as of June 30, 2024, amounted to HKD 94,932,000, a decrease from HKD 115,893,000 as of December 31, 2023, reflecting a decline of approximately 18.1%[12]. - The company recorded a total liability of HKD 41,475,000 as of June 30, 2024, compared to HKD 41,232,000 as of December 31, 2023, showing a slight increase in liabilities[12]. Inventory and Receivables - Inventory as of June 30, 2024, was HKD 20,723,000, down from HKD 21,400,000, indicating a decrease of 3.2%[3]. - Trade and other receivables increased to HKD 25,167,000 from HKD 21,064,000, representing a growth of 19.5%[3]. - Trade and other receivables increased to HKD 22,921,000 as of June 30, 2024, compared to HKD 16,912,000 as of December 31, 2023, showing an increase of approximately 35.4%[20]. Segment Performance - The gross loss from the toy products segment was HKD 13,759,000 for the six months ended June 30, 2024, compared to a loss of HKD 5,632,000 for the same period in 2023, indicating a worsening performance in this segment[11]. - Revenue from toy products decreased by approximately 5% to about HKD 68,611,000, accounting for 100% of total revenue, with a loss of HKD 13,759,000 compared to a profit of HKD 5,632,000 in 2023[24]. Expenses - Distribution costs decreased by approximately 23% to about HKD 962,000, down from HKD 1,253,000 in 2023, due to lower inspection costs[26]. - Administrative expenses increased by approximately 2% to about HKD 34,320,000, up from HKD 33,825,000 in 2023, primarily due to higher employee costs[27]. - Financial expenses increased by approximately 6% to about HKD 381,000, compared to HKD 359,000 in 2023, attributed to increased interest on lease liabilities[28]. - The company incurred depreciation expenses of HKD 2,875,000 for the six months ended June 30, 2024, down from HKD 3,179,000 for the same period in 2023, indicating a reduction in depreciation costs[15]. Cash and Employment - As of June 30, 2024, the company had cash and bank balances of approximately HKD 16,897,000, down from HKD 42,986,000 as of December 31, 2023[29]. - The company employed approximately 650 full-time employees as of June 30, 2024, down from 740 as of December 31, 2023[33]. Strategic Initiatives - The company has entered into a non-binding cooperation framework agreement with the government of Wuwei City, Gansu Province, and Huaneng Jinxin Hengshun New Energy Co., Ltd. to develop sustainable energy infrastructure, including energy storage facilities and transmission stations[35]. - The company plans to acquire all assets and/or equity of Nanjing Dingzhen Automation Technology Co., Ltd., which specializes in R&D and manufacturing of new energy solutions, subject to legal and financial due diligence[35]. - The company is actively seeking mergers and acquisitions opportunities in the oil and gas exploration and production sectors, as well as in sustainable energy infrastructure[36]. - The company aims to enhance its product portfolio and revenue sources through the anticipated transactions under the August and November framework agreements[35]. Outlook and Governance - The company acknowledges that high interest rates are expected to create uncertainty and challenges in the operating environment for the second half of 2024[36]. - The company will continue to optimize its product mix to meet customer demands and improve operational efficiency while implementing strict cost control measures[36]. - There are no specific plans for significant investments or capital assets for the second half of 2024[35]. - The company has complied with the corporate governance code, with some deviations noted regarding the separation of roles between the chairman and CEO[38][39]. - The audit committee has reviewed the unaudited consolidated interim results for the six months ending June 30, 2024[41]. - The interim report will be published on the Hong Kong Stock Exchange and the company's website, containing all required information as per listing rules[42].
PERFECTECH INTL(00765) - 2024 - 中期业绩