Financial Performance - For the six months ended June 30, 2024, the group's revenue was approximately HKD 332.9 million, a slight decrease of about 0.4% compared to HKD 334.3 million for the same period in 2023[5]. - Gross profit increased by approximately 2.1% to about HKD 87.5 million, with a gross margin improvement of about 0.7 percentage points to approximately 26.3%[6]. - Profit attributable to owners of the company decreased by approximately 54.7% to about HKD 3.4 million, primarily due to ongoing fair value losses on investment properties and increased withholding tax on dividends declared in mainland China[12]. - The company recorded a profit before tax of HKD 7,651,000, down 17.6% from HKD 9,290,000 in the previous year[52]. - Net profit for the period was HKD 2,092,000, a significant decline of 78.3% compared to HKD 9,639,000 in the prior year[52]. - The total comprehensive income for the period was HKD (39,000), a decrease from HKD 6,976,000 in the same period last year[52]. - Basic and diluted earnings per share were both HKD 0.5, down from HKD 1.1 in the previous year[52]. Revenue Breakdown - Revenue from external customers for the six months ended June 30, 2024, was HKD 312,985,000, a slight increase from HKD 309,394,000 in the same period of 2023, representing a growth of approximately 0.5%[71]. - Revenue from the United States increased to HKD 181,110,000, up 4.3% from HKD 173,678,000 year-over-year[80]. - Revenue from Asia decreased to HKD 85,766,000, down 9.0% from HKD 94,254,000 in the previous year[80]. - Major customers contributed significantly to revenue, with Company A generating HKD 74,917,000 and Company B generating HKD 35,105,000[81]. Expenses and Costs - Other income and net gains decreased by approximately 51.7% to about HKD 3.7 million, primarily due to fair value losses on investment properties and reduced government subsidies[7]. - Distribution expenses decreased by approximately 9.3% to about HKD 19.6 million, attributed to stricter cost control measures and reduced costs in mainland China due to RMB depreciation[8]. - Financing costs rose by approximately 8.9% to about HKD 3.6 million, mainly due to increased bank borrowing rates and higher usage of short-term trade credit[11]. - The cost of goods sold for the period was HKD 233,612,000, compared to HKD 237,326,000 in the same period last year, reflecting a decrease of 1.5%[88]. - The income tax expense for the period was HKD 5,559,000, compared to a tax credit of HKD 349,000 in the same period last year[90]. Cash Flow and Financing - The group recorded a net cash outflow from financing activities of approximately HKD 26.6 million for the six months ended June 30, 2024, compared to HKD 12.1 million for the same period last year, primarily due to repayment of bank borrowings and dividends paid to non-controlling interests[22]. - The group reported cash used in operating activities of approximately HKD 24.5 million for the six months ended June 30, 2024, significantly higher than HKD 3.9 million for the same period last year, mainly due to large customer orders received near the reporting date[20]. - The financing activities resulted in a net cash outflow of HKD 26,627,000, compared to HKD 12,083,000 in the prior year, indicating increased financing costs[63]. - As of June 30, 2024, the group's cash and bank balances were approximately HKD 110.2 million, down from HKD 155.8 million as of December 31, 2023, while bank borrowings increased to approximately HKD 94.5 million from HKD 89.8 million[19]. Assets and Liabilities - Total assets as of June 30, 2024, were HKD 1,063,925,000, compared to HKD 1,144,617,000 as of December 31, 2023[55]. - The company's net asset value decreased to HKD 567,780,000 from HKD 604,596,000 at the end of 2023[58]. - The group’s total liabilities as of June 30, 2024, were HKD 195,594,000, a slight decrease from HKD 199,716,000 as of December 31, 2023, representing a reduction of approximately 2.2%[74]. - The group’s debt-to-equity ratio as of June 30, 2024, was approximately 22.4%, up from 21.0% as of December 31, 2023, and the ratio excluding lease liabilities was approximately 17.3% compared to 15.5%[23]. Employee and Management - As of June 30, 2024, the total number of employees is approximately 163, an increase from 154 as of June 30, 2023, with total employee costs amounting to approximately HKD 31.3 million compared to HKD 30.3 million for the same period last year[15]. - The total remuneration for key management personnel was HKD 3,195,000 for the six months ended June 30, 2024, compared to HKD 3,135,000 in the same period of 2023, showing a slight increase of 1.9%[121]. Share Capital and Ownership - As of June 30, 2024, the company has a total of 525,000,000 shares held by major shareholders, representing 75% of the issued share capital[37]. - First Concord Limited holds 105,000,000 shares (15%) and City Concord Limited holds 420,000,000 shares (60%) of the company[41]. - The company has sufficient public float, with at least 25% of its issued share capital held by the public[38]. - The company’s issued and fully paid share capital remained at 700,000,000 shares, with a par value of HKD 0.01 per share[109]. Research and Development - The company is expanding its product portfolio with advanced designs and eco-friendly materials to meet changing customer and market demands[13]. - Research expenses decreased significantly to HKD 108,000 in 2024 from HKD 1,018,000 in 2023, indicating a reduction of about 89.4%[77]. Market Strategy - The company aims to strengthen stakeholder relationships and explore new market opportunities to solidify its position as a global industry leader[13]. - The focus on high-margin products and new market development prepares the company to respond to market fluctuations and achieve sustainable growth[13].
科劲国际(06822) - 2024 - 中期财报