Financial Performance - Revenue for the six months ended June 30, 2024, was HK$2,219,366,000, a slight increase from HK$2,193,867,000 in the same period of 2023, representing a growth of 1.2%[11] - Gross profit for the period was HK$244,814,000, compared to HK$171,339,000 in 2023, indicating a significant increase of 42.7%[11] - Profit for the period attributable to non-controlling interests was HK$14,149,000, a substantial increase from HK$7,080,000 in the previous year, reflecting an increase of 99.5%[11] - The company reported a profit before income tax expense of HK$25,833,000, compared to a loss of HK$43,136,000 in the same period last year, marking a turnaround[11] - The profit for the period ended June 30, 2024, was HK$4,243,000, a significant improvement from a loss of HK$74,527,000 in the same period of 2023[12] - Total comprehensive income for the period was HK$1,006,000, compared to a total comprehensive expense of HK$82,872,000 in the prior year[12] - The loss per share for the period was HK$0.8, an improvement from HK$6.7 in the previous year[11] - The loss attributable to owners of the Company for the six months ended 30 June 2024 was HK$9,906,000, a significant improvement compared to HK$81,607,000 for the same period in 2023, representing a reduction of approximately 87.87%[58] Expenses and Costs - Total administrative expenses decreased to HK$197,065,000 from HK$202,294,000, showing a reduction of 2.3%[11] - Finance costs were reduced to HK$8,014,000 from HK$13,711,000, representing a decrease of 41.5%[11] - Administrative and financing costs decreased by a total of 5.1% compared to the same period last year[94] - Total cost of sales decreased by HK$50 million, a 2.4% decline compared to the same period last year[94] - Distribution and selling expenses increased to approximately HK$53,494,000, representing 2.4% of total revenue, up from 1.7% in the same period last year[127] Assets and Liabilities - Current assets totaled HK$3,227,204,000, a decrease from HK$3,368,807,000 at the end of 2023[13] - Net current assets decreased to HK$2,132,293,000 from HK$2,203,516,000, a decline of approximately 3.2%[14] - Total equity attributable to owners of the Company was HK$3,219,097,000, down from HK$3,268,346,000[14] - The total assets less current liabilities amounted to HK$3,604,871,000, down from HK$3,735,548,000[14] - The Group's total assets as of June 30, 2024, were approximately HK$4,699,782,000, down from HK$4,900,839,000 as of December 31, 2023[140] Cash Flow and Financing - For the six months ended June 30, 2024, net cash used in operating activities was HK$62,541, compared to a net cash generated of HK$32,856 in the same period of 2023[18] - The company reported a net decrease in cash and cash equivalents of HK$263,453 for the six months ended June 30, 2024, compared to HK$110,136 in the prior year[18] - New bank borrowings raised during the period were HK$34,012, significantly lower than HK$172,357 in the same period of 2023[18] - The average effective interest rate on bank borrowings increased to 6.36% as of June 30, 2024, compared to 5.99% at the end of 2023[73] - Total repayments of bank borrowings amounted to HK$178,458,000, down 32.2% from HK$263,119,000 in the prior year[73] Market and Operational Insights - The Group's revenue and profit analysis is segmented by geographical areas, including Hong Kong, PRC, Taiwan, Korea, Sri Lanka, America, Europe, and Others[33] - The Group's operations are segmented into distinct geographical areas, with "Others" aggregating various locations including Bangladesh, Vietnam, Singapore, and Macau[33] - The Group has streamlined the production team at Jiangyin Fuhui to adapt to reduced production volume[32] - The Group implemented strategies to expand into new markets and customer segments, leading to a gradual recovery in demand[93] - The Group ceased fabric dyeing and finishing operations of Jiangyin Fuhui Textiles Limited while increasing capacity at other subsidiaries to enhance order allocation[94] Sustainability and Certifications - The company received multiple certifications in 1H2024, including U.S. Cotton Trust Protocol® membership for several subsidiaries, enhancing its sustainability credentials[104] - The Global Organic Textile Standard (GOTS) Version 6.0 certification was obtained in January 2024, indicating compliance with organic textile production standards[104] - The company achieved a two-star green factory award in January 2024, recognizing its commitment to environmental sustainability[106] - The company is focused on continuous improvement in sustainability practices, as evidenced by multiple certifications from recognized organizations[106] Economic Outlook - The global economic growth rate is projected to stabilize at 2.6% for the year 2024, with a significant slowdown expected in the second half of the year[115] - Economic growth in China is anticipated to slow down to 4.8% in 2024, down from 3.8% in 2023, due to weakened consumer confidence and investment prospects[115] - Nearly 60% of economies, representing over 80% of the global population, are expected to have growth rates lower than the average of the 2010s[115] Shareholder Information - As of June 30, 2024, COFCO Corporation held 485,092,000 shares, representing approximately 39.60% of the issued shares[155] - The Group has complied with all covenant ratios during the reporting periods, with no breaches reported as of June 30, 2024[74] - The financial year end for the company is December 31, 2024, with interim results to be announced on August 23, 2024[171]
福田实业(00420) - 2024 - 中期财报