Acquisitions and Disposals - Perfect Group International Holdings Limited completed the acquisition of 55% equity interests in Guangdong Kaisi New Energy Co., Ltd. for approximately RMB 7.15 million in August 2023[13]. - The company disposed of its entire equity interests in Foshan Huaguanhui Property Management Ltd. for approximately RMB 3.7 million (equivalent to approximately HK$4.0 million) in April 2024[16]. - The Group acquired Guangdong Kaisi in 2023, establishing a new Photovoltaic Power Generation Business segment, which generated approximately 3.0 million units of electricity during the six months ended June 30, 2024[29]. - The Group completed the grid connection of ten photovoltaic projects in the PRC with a total capacity of approximately 8,643 kilo-Watt during the same period[29]. - The Group increased its shareholding in Guangdong Huijinying from 61% to 74.67% through a partial acquisition for RMB5,100,000 (approximately HK$5,478,000)[150]. - On June 19, 2024, the Group entered into an agreement to acquire an additional 4.5% equity interest in Guangdong Huijinying for RMB450,000 (approximately HK$483,000), increasing its shareholding from 61% to 70%[156]. - The Group injected RMB4,200,000 into Guangdong Huijinying as paid-up capital, increasing its shareholding from 70% to 74.67%[158]. Financial Performance - Revenue for the six months ended June 30, 2024, was approximately HK$154.7 million, a decrease of approximately HK$19.4 million or 11.1% from HK$174.1 million in the same period of 2023[35]. - Revenue from the Jewellery Business decreased by approximately HK$27.0 million or 17.4%, while the Property Business increased by approximately HK$6.5 million or 35.6% and the Photovoltaic Business increased by approximately HK$1.1 million or 167.3%[36]. - Overall gross profit decreased from approximately HK$57.7 million to approximately HK$42.5 million, a decrease of approximately HK$15.2 million or 26.3%[47]. - The overall gross profit margin decreased from approximately 33.1% to approximately 27.5%, representing a decrease of approximately 5.6 percentage points or 16.9%[48]. - Profit for the six months ended 30 June 2024 was approximately HK$25.2 million, representing an increase of approximately HK$500,000 or 2.0% compared to approximately HK$24.7 million for the same period in 2023[69]. - Total comprehensive income for the period was HK$14,998,000, significantly higher than HK$7,377,000 in 2023, marking an increase of 103.5%[144]. - Basic earnings per share remained stable at 1.90 HK cents, compared to 1.91 HK cents in the same period last year[144]. Segment Performance - The Jewellery Business was significantly impacted by geopolitical tensions, rising interest rates, declining economic growth expectations, and record high gold prices, leading to weakened customer sentiment[20]. - The Group's indirect non-wholly owned subsidiary, Guangdong Huijinying Jewellery Company Limited, commenced operations through its licensed environmental protection center during the same period, integrating its metal refining and purifying processes into the Jewellery Business segment[21]. - The Group expects the Jewellery Business to continue facing challenges in the second half of 2024 due to the macroeconomic environment and market contraction in China, while focusing on enhancing participation in jewellery fairs and developing competitive styles[22]. - The Property Business is expected to continue generating stable rental and management fee income in the second half of 2024, with ongoing efforts to increase occupancy rates[26]. - Revenue from the Photovoltaic Power Generation Business increased from approximately HK$0.7 million to approximately HK$1.7 million, representing an increase of approximately HK$1.0 million or 142.9%[61]. - The jewellery business generated a segment profit of HK$16,937,000, while the property business reported a profit of HK$3,722,000, and the photovoltaic power generation business achieved a profit of HK$794,000[182]. Revenue Breakdown - Revenue from Hong Kong decreased from approximately HK$108.8 million to approximately HK$95.6 million, representing a decrease of approximately HK$13.2 million or 12.1%[40]. - Revenue from Dubai decreased from approximately HK$46.0 million to approximately HK$27.3 million, representing a decrease of approximately HK$18.7 million or 40.6%[41]. - Revenue from the PRC increased from approximately HK$19.4 million to approximately HK$31.9 million, representing an increase of approximately HK$12.5 million or 64.5%[43]. - Revenue breakdown included HK$95,579,000 from Hong Kong, HK$27,299,000 from Dubai, and HK$31,857,000 from the PRC[197]. Expenses and Costs - Selling and distribution costs decreased from approximately HK$7.9 million to approximately HK$7.1 million, a decrease of approximately HK$0.8 million or 10.1%[62]. - General and administrative expenses decreased from approximately HK$23.8 million to approximately HK$22.7 million, a decrease of approximately HK$1.1 million or 4.6%[63]. - Finance costs increased to approximately HK$0.8 million for the six months ended 30 June 2024, up from approximately HK$0.6 million for the same period in 2023[67]. - The gross profit from the Jewellery Business was approximately HK$33.2 million, a decrease of approximately HK$12.5 million or 27.4% compared to the previous year[50]. - The gross profit from the Property Business was approximately HK$8.3 million, a decrease of approximately HK$3.6 million or 30.5% compared to the previous year[50]. - The gross profit from the Photovoltaic Power Generation Business was approximately HK$1.0 million, an increase of approximately HK$1.0 million or 2,083.3% compared to the previous year[50]. Assets and Liabilities - Current assets amounted to approximately HK$694.5 million as at 30 June 2024, down from approximately HK$734.3 million as at 31 December 2023[70]. - Total interest-bearing bank loans increased to approximately HK$43.1 million as at 30 June 2024, up from approximately HK$25.0 million as at 31 December 2023[71]. - The gearing ratio was approximately 0.07 as at 30 June 2024, compared to approximately 0.04 as at 31 December 2023[75]. - Net assets as of June 30, 2024, were HK$637,374,000, down from HK$649,704,000 at the end of 2023, a decrease of 1.9%[146]. - The total consolidated assets decreased slightly to HK$818,398,000 from HK$837,525,000 as of December 31, 2023[194]. Corporate Governance and Management - The Company adopted the Corporate Governance Code and met the provisions set out in Part 2 of the CG Code, with a deviation from code provision C.2.1[114]. - The roles of chairman and chief executive officer are held by the same individual, Mr. Kan Kin Kwong, which the Directors believe is beneficial for management[115]. - The Company has no provisions for pre-emptive rights under its memorandum and articles of association[120]. - The Company will continue to enhance its corporate governance practices appropriate to its operations and growth[114]. - The Group's management has implemented a share option scheme to incentivize employees based on their individual performance[89]. Employee and Shareholder Information - The Group had a total of 132 employees as of June 30, 2024, down from 154 employees as of December 31, 2023[89]. - The Board resolved not to declare any interim dividend for the six months ended June 30, 2024, consistent with the decision for the same period in 2023[94]. - As of June 30, 2024, Mr. Kan Kin Kwong holds 886,959,000 shares, representing approximately 68.32% of the company's shareholdings[98]. - Immaculate Diamonds Limited, controlled by Mr. Kan, holds 729,000,000 shares, accounting for 54.36% of the company's total shares[101]. - The maximum number of shares that may be issued upon exercise of all share options under the Share Option Scheme is capped at 10% of the total shares in issue, equating to 45,000,000 shares, which is 135,000,000 shares post-share subdivision in September 2017[108]. Audit and Compliance - The Audit Committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2024[134]. - The auditor, Moore CPA Limited, conducted a review of the interim results in accordance with Hong Kong Standard on Review Engagements 2410[134]. - The Group's financial controls, risk management, and internal control systems have been reviewed by the Audit Committee[133]. - The Group has maintained sufficient public float since its listing on the Stock Exchange[126].
保发集团(03326) - 2024 - 中期财报