Financial Performance - Revenue from continuing operations for the six months ended June 30, 2024, decreased by 17.2% to approximately HK$166,070,000 compared to approximately HK$200,638,000 for the corresponding period in 2023[7]. - Net loss for the six months ended June 30, 2024, was approximately HK$23,706,000, a decrease of 36.4% compared to approximately HK$37,247,000 for the corresponding period in 2023[7]. - Loss attributable to the owners of the Company for the six months ended June 30, 2024, was approximately HK$20,248,000, decreased by 38.9% compared to approximately HK$33,165,000 for the corresponding period in 2023[7]. - For the six months ended June 30, 2024, total revenue decreased by 17.2% to HK$166,070,000 compared to HK$200,638,000 in the same period of 2023[29]. - The net loss for the same period was approximately HK$23,706,000, a reduction of 36.4% from HK$37,247,000 in 2023[9]. - The loss attributable to owners of the company was approximately HK$20,248,000, down 38.9% from HK$33,165,000 in the previous year[9]. - Adjusted EBITDA increased by 9.1% to HK$29,221,000 compared to HK$26,794,000 in the same period of 2023[29]. - The gross profit margin for the Group decreased, mainly attributed to the decline in unit handling price of hazardous waste treatment services[30]. - The total comprehensive loss for the period attributable to owners of the Company was HK$15,019,000, compared to HK$66,498,000 in the prior year, indicating a significant reduction of 77.6%[150]. Cash and Liquidity - Cash and cash equivalents of the Group at June 30, 2024, was approximately HK$212,302,000, an increase of 13.9% compared to approximately HK$186,365,000 at December 31, 2023[7]. - The Group's cash and bank balances totaled HK$212,302,000 as of June 30, 2024, an increase from HK$186,365,000 as of December 31, 2023[37]. - The net cash generated from operating activities was HK$31,886, compared to a net cash used of HK$6,734 in the same period of 2023[159]. - The company reported a net cash used in investing activities of HK$11,682 for the six months ended June 30, 2024, compared to HK$26,737 in the same period of 2023[159]. - The Group's current ratio as of June 30, 2024, was 1.34 times, slightly up from 1.33 times on December 31, 2023[41]. Debt and Borrowings - Bank borrowings of the Group at June 30, 2024, was approximately HK$53,700,000, an increase of 22.0% compared to approximately HK$44,000,000 at December 31, 2023[8]. - The total interest-bearing borrowings increased to HK$53,864,000 as of June 30, 2024, compared to HK$44,332,000 on December 31, 2023, resulting in a gearing ratio of 5.5%, up from 4.4%[41]. - The secured RMB bank borrowings were HK$21,480,000 as of June 30, 2024, down from HK$22,000,000 on December 31, 2023[44]. Operational Highlights - The total segment revenue from environmental treatment and disposal services for industrial and medical wastes was approximately HK$105,297,000, compared to HK$138,808,000 in 2023[10]. - The Group collected approximately 45,591 metric tonnes of hazardous waste, slightly down from 45,792 metric tonnes in the same period last year[11]. - The average utilization rate of the centralized sewage treatment plant was 86.2%, down from 91.8% in 2023, while the average treatment capacity utilization increased to 20.3% from 15.7%[21]. - The Group's long-term equity investments in three plastic materials dyeing entities reported pre-tax profit margins of 2.6%, 2.7%, and 5.9% for Suzhou New Huamei, Danyang New Huamei, and Qingdao Huamei, respectively, compared to lower margins in 2023[23]. - The Group's revenue from integrated treatment and disposal services for hazardous waste was approximately HK$239,160,000 for 96,485 metric tonnes of waste collected and disposed, compared to HK$325,479,000 for 96,274 metric tonnes in the previous period[31]. Dividends and Shareholder Returns - The Board resolved not to declare a dividend for the six months ended June 30, 2024[8]. - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024, while a final dividend of HK$0.0016 per ordinary share, totaling approximately HK$4,857,000, has been recognized as a liability[76]. Corporate Governance - The Company has complied with all code provisions of the Corporate Governance Code throughout the six months ended June 30, 2024, except for code provision C.2.1 regarding the separation of roles of Chairman and CEO[87]. - The roles of Chairman and CEO are currently held by the same individual, Mr. XI Yu, which the Board believes is appropriate for facilitating business strategy execution[88]. - The Company has adopted the Model Code for Securities Transactions by Directors, confirming compliance with the required standards throughout the six months ended June 30, 2024[91]. Legal and Regulatory Matters - The asset preservation order related to ongoing legal proceedings will remain in effect until March 17, 2025, unless extended or lifted by the court[60]. - The Group has not encountered any material non-compliance with relevant laws and regulations during the six months ended June 30, 2024, that significantly impacts its business operations[135]. Future Outlook - The Group remains optimistic about future operations and aims to return to profitability while maintaining a strong focus on environmental protection and waste management[27]. - The Group plans to explore business restructuring and industrial upgrading opportunities to enhance the sustainability of its environmental operations[26]. - The Group plans to strengthen its business strategy for geographical market penetration and explore business restructuring to reduce dependency on specific markets[74].
新宇环保(00436) - 2024 - 中期财报