Financial Performance - The Group recorded a loss of approximately HK$2,956,000 for the six months ended June 30, 2024, compared to a profit of approximately HK$537,000 for the same period in 2023, primarily due to a decrease in revenue and increased administrative costs [7]. - Revenue decreased by approximately HK$25.5 million, or approximately 29.8%, from approximately HK$85.8 million for the six months ended June 30, 2023, to approximately HK$60.2 million for the six months ended June 30, 2024 [9]. - Gross profit decreased by approximately 18.4% from approximately HK$15.5 million during the six months ended June 30, 2023, to approximately HK$12.6 million during the six months ended June 30, 2024 [13]. - The Group recorded a net loss attributable to the owners of the Company of approximately HK$2,956,000 for the six months ended June 30, 2024, compared to a net profit of approximately HK$537,000 for the same period in 2023 [20]. - Total comprehensive expense for the period was HK$4,489,000, compared to HK$2,018,000 in 2023 [70]. - Basic and diluted loss per share for the period was HK$0.16, compared to earnings of HK$0.03 per share in 2023 [70]. Revenue Breakdown - Revenue for the six months ended June 30, 2024, decreased to HK$60,210,000, down 29.8% from HK$85,753,000 in 2023 [70]. - Revenue from low-voltage switchboards was HK$22,363,000, down 29.1% from HK$31,543,000 in 2023 [89]. - Revenue from local motor control panels was HK$22,372,000, a decrease of 30.0% compared to HK$31,887,000 in 2023 [89]. - Revenue from the motor control center was HK$7,458,000, down 19.7% from HK$9,291,000 in 2023 [89]. - Revenue from electrical distribution boards and control boxes was HK$5,010,000, a significant drop from HK$10,897,000 in 2023 [89]. - Revenue from Hong Kong was HK$57,009,000, down 18.7% from HK$70,152,000 in 2023 [91]. - Revenue from Mainland China was HK$287,000, a decrease of 89.8% compared to HK$2,816,000 in 2023 [91]. - Revenue from Macau was HK$2,914,000, down 77.2% from HK$12,785,000 in 2023 [91]. Cost and Expenses - Cost of sales amounted to approximately HK$47.6 million for the six months ended June 30, 2024, representing a decrease of approximately 32.3% from approximately HK$70.3 million for the same period in 2023 [12]. - Selling and distribution expenses decreased by approximately 34.5% from approximately HK$2.9 million during the six months ended June 30, 2023, to approximately HK$1.9 million during the six months ended June 30, 2024 [14]. - Administrative and other expenses increased by approximately HK$1.0 million, or about 7.8%, from approximately HK$13.4 million for the six months ended June 30, 2023, to approximately HK$14.4 million for the same period in 2024 [18]. - Finance costs decreased from approximately HK$229,000 for the six months ended June 30, 2023, to approximately HK$93,000 for the same period in 2024, mainly due to the repayment of part of the interest-bearing short-term loans [20]. Cash and Liquidity - As of June 30, 2024, the Group had cash and cash equivalents of approximately HK$55.8 million, an increase from approximately HK$53.0 million as of December 31, 2023 [21]. - The working capital as of June 30, 2024, was approximately HK$132.6 million, down from approximately HK$138.5 million as of December 31, 2023 [21]. - The gearing ratio as of June 30, 2024, was approximately 1.3%, a decrease from 1.6% as of December 31, 2023, primarily due to the repayment of short-term borrowings [22]. - The net cash generated from operating activities was HK$7,175,000, compared to a net cash used of HK$3,562,000 in the same period of 2023 [81]. - Cash and cash equivalents at the end of the period amounted to HK$55,838,000, slightly down from HK$56,583,000 at the end of June 2023 [81]. Corporate Governance - The Group has complied with all applicable code provisions of the Corporate Governance Code throughout the six months ended June 30, 2024 [51]. - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value [52]. - The board of directors will continue to review the existing corporate governance structure and make necessary adjustments as needed [52]. - The company has confirmed that certain directors are acting in concert regarding their shareholdings [57]. - The company has maintained compliance with the Listing Rules and CG Code through its established governance structures [68]. Employee and Management - The Group had 220 full-time employees as of June 30, 2024, a decrease from 229 employees as of December 31, 2023 [39]. - Total staff costs for the six months ended June 30, 2024, were approximately HK$18.6 million, compared to approximately HK$18.0 million for the same period in 2023, reflecting a year-over-year increase of about 3.3% [39]. - The remuneration policy for employees is periodically reviewed, with potential salary increments and discretionary bonuses based on individual performance assessments [39]. - The Group's key management personnel remuneration totaled HK$1,086,000 for the six months ended June 30, 2024, a decrease of 15.5% from HK$1,286,000 in the same period of 2023 [121]. Investments and Commitments - The Group had no significant investments, acquisitions, or disposals during the six months ended June 30, 2024 [27]. - The Group had a capital commitment of HK$1,000,000 for investment in a subsidiary as of June 30, 2024, unchanged from December 31, 2023 [35]. - The Group's management has resolved to change the proposed use of the unutilized net proceeds as disclosed in previous announcements [43]. Related Party Transactions - The Group reported related party sales of goods amounting to HK$2,503,000 for the six months ended June 30, 2024, a significant increase from HK$146,000 in the same period of 2023 [115]. - The Group's consultancy fees to related parties were nil for the six months ended June 30, 2024, compared to HK$326,000 in 2023, indicating a complete cessation of this expense [115].
全达电器集团控股(01750) - 2024 - 中期财报