Financial Performance - For the six months ended June 30, 2024, the company reported a revenue of HKD 87,896,000, an increase of 6.1% compared to HKD 82,396,000 for the same period in 2023[1] - The gross profit for the same period was HKD 33,682,000, representing a gross margin of 38.3%, up from HKD 29,128,000 in 2023[1] - The net loss for the six months ended June 30, 2024, was HKD 10,607,000, an improvement from a net loss of HKD 15,009,000 in the previous year, indicating a reduction in losses by 29.9%[2] - The total comprehensive loss for the period was HKD 2,579,000, an improvement from HKD 6,016,000 in the same period last year[3] - The total loss before tax for the six months ended June 30, 2024, was HKD 10,607,000, compared to a loss of HKD 15,009,000 for the same period in 2023, indicating an improvement in financial performance[20][29] - The loss for the period decreased by approximately HKD 4,400,000 to about HKD 10,600,000, compared to HKD 15,000,000 for the same period in 2023[59] Assets and Liabilities - The total assets as of June 30, 2024, amounted to HKD 101,456,000, an increase from HKD 86,071,000 as of December 31, 2023[4] - Current assets increased to HKD 95,395,000 from HKD 80,300,000, reflecting a growth of 18.8%[4] - The total liabilities as of June 30, 2024, were HKD 1,104,640,000, slightly up from HKD 1,102,061,000 at the end of 2023[5] - Total liabilities as of June 30, 2024, were approximately HKD 1,104,640,000, slightly up from HKD 1,102,061,000 as of December 31, 2023[11] - As of June 30, 2024, the company has an equity deficit of approximately HKD 893,900,000, slightly increased from approximately HKD 890,300,000 as of December 31, 2023[73] - Total borrowings as of June 30, 2024, amount to approximately HKD 1,166,500,000, up from approximately HKD 1,148,400,000 as of December 31, 2023[74] Cash Flow and Investments - Cash and cash equivalents decreased by HKD 6,586,000, ending at HKD 35,642,000 as of June 30, 2024, down from HKD 43,438,000 at the beginning of the period[5] - The company experienced a net cash outflow from operating activities of HKD 9,889,000 for the six months ended June 30, 2024, compared to a net cash inflow of HKD 3,264,000 in the same period of 2023[5] - The company’s net cash used in investing activities was HKD 3,094,000 for the six months ended June 30, 2024, compared to HKD 2,086,000 in the same period in 2023[5] - The company’s financing activities resulted in a net cash inflow of HKD 8,499,000, primarily from non-controlling interests[5] - The group invested approximately HKD 3,125,000 in the acquisition of properties, plants, and equipment during the period[33] Inventory and Receivables - The company reported a significant increase in inventory, which rose to HKD 48,208,000 from HKD 22,394,000, indicating a 115.5% increase[4] - As of June 30, 2024, the total inventory was HKD 76,915,000, with a net realizable value of HKD 48,208,000[35] - Trade receivables amounted to HKD 47,755,000, with a provision for impairment loss of HKD 46,080,000[40] Operational Segments - The company operates in three main segments: support services for saccharin and ethanol, sugar cane planting and sugar production, and ethanol biofuel[17] - The company did not record any revenue from external customers in the support services segment for the six months ended June 30, 2024, due to the inability to engage in ongoing related transactions[70] - The ethanol business segment reported a net operating loss of approximately 600,000 HKD for the six months ended June 30, 2024, primarily due to foreign exchange losses[70] - The ethanol business in Benin continues to be on hold due to the government's inability to execute land lease terms, resulting in an operating loss of approximately HKD 700,000 for the six months ended June 30, 2024, compared to an operating profit of approximately HKD 800,000 for the same period in 2023[72] Corporate Governance and Management - The company has adopted a new share option plan to attract and retain top personnel, although no options have been granted under this plan since its adoption[90] - The company has complied with the corporate governance code, except for the ongoing acquisition of insurance for directors' legal liability, which is expected to be completed in 2024[94] - The roles of the chairman and the CEO are clearly defined and separated, ensuring a balance of power within the board[95] - Independent non-executive directors are expected to actively participate in board meetings and contribute their expertise[95] - The company has not filled the vacancy of the managing director position following the resignation of Mr. Liao Yuanjiang on December 16, 2010[95] Future Outlook and Risks - The report contains forward-looking statements regarding the company's financial condition and business performance, which are subject to known and unknown risks[100] - The international sugar prices are expected to decline from current high levels due to improved global export supply, with production in India and Brazil projected to increase[85] - Jamaica's sugar prices will rise further in August 2024 to address rising production costs, including labor costs, with the new minimum wage effective from June 2024[85] - Hurricane "Beryl" impacted Jamaica in July 2024, causing damage to sugarcane and expected to reduce revenue and gross profit in the second half of 2024[85] - The company will not engage in export activities in 2024, focusing on meeting local demand in Jamaica due to government restrictions on raw sugar imports[85]
华联国际(00969) - 2024 - 中期财报