Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 433.9 million, a decrease of 9.4% compared to HKD 479.0 million in the same period of 2023[5]. - Gross profit increased to HKD 74.6 million, representing a growth of 4.8% from HKD 71.2 million year-on-year, with a gross margin of 17.2% compared to 14.9% in the previous year[5]. - Profit from continuing operations for the period was HKD 5.9 million, a significant increase of 275.1% from HKD 1.6 million in the prior year[5]. - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was HKD 35.3 million, down 11.9% from HKD 40.0 million in the same period last year[5]. - Earnings per share from continuing operations rose to HKD 0.49, compared to HKD 0.13 in the previous year[5]. - The company reported a basic and diluted earnings per share of HKD 0.49 for the period, up from HKD 0.04 in the previous year[14]. - The group reported a profit from continuing operations before tax of approximately HKD 5,896,000 for the six months ended June 30, 2024, compared to HKD 1,572,000 for the same period in 2023[71]. - The group’s net profit attributable to shareholders was approximately HK$5.9 million, a significant increase of about 1,103.3% compared to the same period in 2023[79]. Liquidity and Financial Ratios - Current ratio as of June 30, 2024, was 1.22, down from 1.80 at the end of 2023, indicating a decrease in short-term liquidity[6]. - Quick ratio also decreased to 1.12 from 1.58, reflecting a decline in immediate liquidity[6]. - Interest coverage ratio increased to 2.03, compared to 0.22 in the previous year, indicating better ability to cover interest expenses[5]. - Cash and cash equivalents rose significantly to HKD 420,812,000, compared to HKD 226,239,000 at the end of 2023, indicating improved liquidity[13]. - The total cash and cash equivalents at the end of the period increased to HKD 420,812,000, up from HKD 197,933,000 at the end of June 2023[20]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 1,454,521,000, a slight increase from HKD 1,431,519,000 at the end of 2023[13]. - Total liabilities increased to HKD 733,277,000 from HKD 710,476,000, reflecting a rise of 3.2%[13]. - The total equity attributable to the owners of the company increased to HKD 721,244,000 from HKD 721,043,000, showing stability in shareholder equity[13]. - The company reported total borrowings of HKD 272,387,000 as of June 30, 2024, an increase of 29.3% from HKD 210,603,000 as of December 31, 2023[53]. - The company has a current tax liability of HKD 301,064,000 as of June 30, 2024, compared to HKD 88,425,000 as of December 31, 2023, indicating a significant increase[57]. Segment Performance - For the six months ended June 30, 2024, the reportable segment revenue for aluminum products was HKD 433,942,000, a decrease of 9.4% compared to HKD 478,976,000 for the same period in 2023[36][42]. - The adjusted profit before tax for the aluminum products segment was HKD 21,676,000 for the six months ended June 30, 2024, representing a significant increase from HKD 10,304,000 in the prior year, marking a growth of 110.5%[36][38]. - Revenue from Vietnam remained stable at HKD 287,550,000 for the six months ended June 30, 2024, compared to HKD 287,736,000 in the same period of 2023[42]. Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 109,742,000, a decrease of 44.7% compared to HKD 198,983,000 for the same period in 2023[20]. - The net cash used in investing activities was HKD 31,153,000, compared to a net cash outflow of HKD 416,000 in the previous year[20]. - The net cash generated from financing activities was HKD 56,514,000, a significant improvement from a net cash outflow of HKD 62,588,000 in the prior year[20]. Shareholder Information - The company has issued a total of 1,200,000,000 ordinary shares as of June 30, 2024, unchanged from December 31, 2023[50]. - Easy Star Holdings Limited holds 900,000,000 shares, accounting for 75% of the company's issued share capital as of June 30, 2024[130]. - The average number of ordinary shares in issue remained stable at 1,199,405,000 shares for both periods[71]. Corporate Governance and Compliance - The company has maintained compliance with the corporate governance code as per the listing rules, with the exception of the chairman and CEO roles being held by the same individual since July 1, 2022[133]. - The audit committee, consisting of three independent non-executive directors, has reviewed the accounting principles and practices adopted by the group[136]. - The interim financial statements for the period have been reviewed by the audit committee but remain unaudited[137]. Future Outlook - In the second half of 2024, the company expects a more stable environment due to ongoing market rationalization, which will drive profit improvement across product segments[94]. - The company aims to enhance global supply chain capabilities to address global tensions and regulatory issues, thereby strengthening its position in overseas markets[94]. - The company remains committed to achieving strategic goals and continuously seeks growth and profit opportunities[94].
荣阳实业(02078) - 2024 - 中期财报