Financial Performance - The company recorded revenue of approximately HKD 62,620,000, a decrease of about HKD 8,120,000 or 11.5% compared to HKD 70,740,000 in the previous fiscal period[7]. - The loss attributable to the company's owners was approximately HKD 20,990,000, an increase of about HKD 12,920,000 or approximately 160.1% compared to HKD 8,070,000 in the previous fiscal period[16]. - Revenue from the cigarette packaging business was approximately HKD 58,450,000, a decrease of HKD 12,360,000 or 17.5% from HKD 70,810,000 in the previous fiscal period[8]. - The gross profit for the company was approximately HKD 9,030,000, down from HKD 17,920,000 in the previous fiscal period, resulting in a gross margin of 14.4%, a decrease of 10.9% from 25.3%[10]. - The gross margin for the cigarette packaging business was approximately 28.2%, down from 32.8% in the previous fiscal period, primarily due to decreased sales and rising raw material prices[10]. - The company reported a net loss of HKD 21,046,000 for the six months ended June 30, 2024, compared to a net loss of HKD 8,442,000 in 2023, representing an increase in losses of 148.5%[36]. - The company recorded a comprehensive loss of HKD 23,672 thousand for the six months ended June 30, 2024, compared to a comprehensive loss of HKD 19,229 thousand for the same period in 2023, indicating a worsening of approximately 23.5%[40]. Cash Flow and Liquidity - The group reported a net cash outflow from operating activities of HKD 1,865,000 for the fiscal period 2024, an improvement from HKD 6,855,000 in the fiscal period 2023[21]. - The company’s cash and cash equivalents decreased to HKD 10,911,000 from HKD 12,341,000, a decline of 11.6%[38]. - The company’s financing activities resulted in a net cash outflow of HKD 6,651 thousand for the six months ended June 30, 2024, compared to a net outflow of HKD 2,712 thousand for the same period in 2023, indicating a worsening in cash flow management[42]. - The group’s cash flow management remains under scrutiny due to regulatory constraints on capital outflows from China[80]. Assets and Liabilities - As of June 30, 2024, the group's net asset value was HKD 291,510,000, down from HKD 315,200,000 as of December 31, 2023, and the operating cash surplus was HKD 156,490,000, down from HKD 174,660,000[21]. - Total assets as of June 30, 2024, were HKD 447,574,000, a decrease of 8.4% from HKD 488,498,000 as of December 31, 2023[38]. - Total liabilities decreased to HKD 156,062 thousand as of June 30, 2024, from HKD 173,297 thousand as of December 31, 2023, reflecting a reduction of about 10%[39]. - The company’s non-current assets totaled HKD 141,123,000, down from HKD 147,056,000, a decrease of 4.0%[38]. - The group’s total liabilities decreased to HKD 101,646,000 as of June 30, 2024, from HKD 106,262,000 as of December 31, 2023[82]. Operational Highlights - The cigarette packaging business remains the core business, with efforts to strengthen relationships with existing customers and seek new clients to expand market share[26]. - The environmental governance business is expected to face challenges due to local government financial constraints, with low opportunities for new ecological restoration projects[26]. - The group continues to focus on expanding its market presence and enhancing its product development capabilities[76]. Employee and Management - The group employed a total of 273 full-time employees as of June 30, 2024, down from 288 employees as of December 31, 2023[26]. - Total employee compensation, including directors' remuneration and benefits, amounted to HKD 15,680,000 for the reporting period, compared to HKD 16,850,000 in the previous fiscal period[26]. - The total remuneration for key management personnel for the six months ended June 30, 2024, was 1,902 thousand HKD, a decrease of 8.7% from 2,083 thousand HKD for the same period in 2023[91]. Corporate Governance - The company has adhered to the corporate governance code during the reporting period, with the exception of the separation of roles between the chairman and CEO[27]. - The board held only one regular meeting during the reporting period to review and discuss the company's annual performance[28]. Shareholder Returns - The company did not recommend the payment of an interim dividend for the reporting period[17]. - The company did not recommend an interim dividend for the six months ended June 30, 2024, consistent with the previous fiscal period[67]. Financial Commitments and Risks - The group has capital commitments of approximately HKD 4,090,000 related to the purchase of property, plant, and equipment as of June 30, 2024[24]. - The group has not established any hedging policies for foreign exchange risks, which mainly involve cash and bank balances denominated in HKD[23]. - The group provided loans to third parties amounting to HKD 11,559,000, with a significant loan of HKD 10,737,000 to a real estate developer in Guangdong, which has been fully impaired due to the borrower's financial difficulties[77].
华禧控股(01689) - 2024 - 中期财报