Revenue and Profitability - Revenue for the six months ended June 30, 2024, was HKD 89,330,897, a decrease of 6.9% compared to HKD 95,261,132 for the same period in 2023[2] - Gross profit increased to HKD 15,852,367, representing a gross margin of 17.7%, compared to HKD 9,376,788 and a gross margin of 9.8% in the previous year[2] - The company reported a net loss attributable to the owners of the company for the period was HKD 10,808,989, significantly improved from a loss of HKD 24,143,853 in the same period last year[2] - The group reported a pre-tax loss of HKD 10,808,989 for the six months ended June 30, 2024, compared to a loss of HKD 24,143,853 for the same period in 2023[23] - The overall gross profit increased by 69.1% to approximately HKD 15.9 million, resulting in a gross margin of 17.7%, up 7.9 percentage points year-on-year[34] - Basic loss per share for the six months ended June 30, 2024, was HKD 0.0405, improved from HKD 0.0904 for the same period last year[33] Comprehensive Loss and Financial Position - The company reported a comprehensive loss of HKD 14,277,993, compared to HKD 32,076,823 in the previous year, indicating a reduction in overall losses[3] - Total assets as of June 30, 2024, were HKD 361,082,529, down from HKD 382,384,359 as of December 31, 2023[4] - Non-current assets as of June 30, 2024, totaled HKD 185,582,090, a decrease from HKD 192,445,519 as of December 31, 2023[15] - The total accounts receivable as of June 30, 2024, was HKD 33,886,349, a decrease from HKD 35,895,370 as of December 31, 2023[26] - The total accounts payable as of June 30, 2024, was HKD 9,520,178, a slight decrease from HKD 9,989,918 as of December 31, 2023[28] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were HKD 42,084,656, down from HKD 48,259,519 at the end of the previous period[7] - The company experienced a net cash outflow from operating activities of HKD 7,696,067, compared to an inflow of HKD 20,733,745 in the same period last year[7] - The group reported cash and cash equivalents of HKD 92,929,875 as of June 30, 2024, compared to HKD 100,355,497 as of December 31, 2023[27] - As of June 30, 2024, the total borrowings from banks and other financial institutions amounted to approximately HKD 7 million, while cash and cash equivalents totaled approximately HKD 92.9 million[36] - The group maintained a net cash position, with a debt ratio indicating that cash and cash equivalents exceeded total debt[36] Operational Efficiency and Strategic Initiatives - The company aims to improve operational efficiency and reduce losses in the upcoming quarters through strategic initiatives[1] - Employee expenses for the current period amounted to HKD 29,533,335, while depreciation expenses were HKD 4,205,095, compared to HKD 30,507,301 and HKD 4,524,078 respectively for the same period last year[18] - Sales and distribution costs decreased by 4.4% to approximately HKD 8.2 million, while administrative and other expenses also decreased by 4.4% to approximately HKD 11.1 million[34] Customer and Market Insights - Major customers contributed over 10% of revenue, with Customer A generating HKD 22,686,563 and Customer B generating HKD 10,075,027 in the first half of 2024[13] - Revenue from the Hong Kong market was HKD 2,266,897 for the first half of 2024, down from HKD 3,409,168 in the same period of 2023[14] Currency and Financial Risks - The group recorded a net loss from forward currency contracts of HKD 10,635,692 due to the depreciation of the RMB against the USD for the six months ended June 30, 2024[25] - The group reported a net foreign exchange gain of HKD 504,731 for the first half of 2024, compared to a gain of HKD 487,493 in the same period of 2023[16] Governance and Compliance - The company has established an audit committee to review and supervise the financial reporting process and internal controls[48] - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO[46] Future Outlook - The outlook for the second half of 2024 anticipates potential interest rate cuts starting in September, which may boost consumer sentiment and corporate investments[35]
坚宝国际(00675) - 2024 - 中期财报