Financial Performance - Revenue for the six months ended June 30, 2024, was HK$563,536,000, compared to HK$546,606,000 for the same period in 2023, representing an increase of 3.4%[6] - Gross profit for the period was HK$108,445,000, up from HK$76,585,000 in 2023, indicating a significant increase of 41.6%[6] - Operating profit rose to HK$28,406,000, compared to HK$4,470,000 in the previous year, reflecting a substantial growth of 535.5%[6] - Profit attributable to equity holders of the Company was HK$15,701,000, a turnaround from a loss of HK$1,552,000 in 2023[6] - Basic and diluted earnings per share for the period were 15.70 HK cents, compared to a loss of 1.55 HK cents in the same period last year[6] - Total comprehensive income for the period attributable to equity holders was HK$14,316,000, compared to a loss of HK$3,404,000 in 2023[6] Expenses - Selling and distribution expenses increased to HK$27,159,000 from HK$22,830,000, marking a rise of 18.5%[6] - Administrative expenses slightly increased to HK$57,624,000 from HK$55,075,000, a rise of 4.6%[6] - Total cost of sales, selling and distribution expenses, and administrative expenses amounted to HK$539,874,000 for the six months ended June 30, 2024, a decrease of 1.9% from HK$547,926,000 in the same period of 2023[36] - Employee benefit costs and manpower service expenses increased to HK$123,973,000, up 22.2% from HK$101,420,000 year-on-year[36] Assets and Liabilities - As of June 30, 2024, total assets decreased to HK$949,619,000 from HK$965,631,000 as of December 31, 2023, representing a decline of approximately 1.66%[7] - Current assets increased to HK$815,580,000, up from HK$822,662,000, indicating a decrease of about 0.86%[8] - Total liabilities decreased to HK$785,010,000 from HK$815,338,000, a reduction of about 3.7%[8] - Total equity attributable to equity holders rose to HK$164,609,000 from HK$150,293,000, reflecting an increase of approximately 9.53%[9] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2024, was HK$70,715,000, compared to HK$29,006,000 for the same period in 2023[15] - The company reported a net cash used in financing activities of HK$69,330,000 for the six months ended June 30, 2024, compared to HK$62,848,000 for the same period in 2023[15] - The cash and cash equivalents at the end of the period on June 30, 2024, were HK$251,738,000, an increase from HK$179,435,000 at the end of June 30, 2023[15] - The company reported a decrease in cash and cash equivalents of HK$22,723,000 for the six months ended June 30, 2024[15] Investments and Acquisitions - The Group acquired property, plant, and equipment amounting to approximately HK$4,232,000 during the six months ended June 30, 2024, compared to HK$3,848,000 in the same period of 2023[51] - The Group purchased intangible assets of approximately HK$69,000 for the six months ended June 30, 2024, down from HK$440,000 in the previous year[52] - The Group established a joint venture, WiseGiken Elite Pte. Ltd, with a 90% stake acquired for SGD 1,800, while Giken Sakata (S) Limited holds a 10% stake for SGD 200[53][56]. Market Performance - The Philippines became the largest market, contributing approximately HK$180.5 million, or approximately 32.0% of total revenue, compared to 15.8% in the first half of 2023[86] - The Group's revenue from the Chinese Mainland increased to HK$111,493,000 in 2024 from HK$15,079,000 in 2023[31] - The Group's revenue from the U.S. decreased to HK$137,435,000 in 2024 from HK$197,802,000 in 2023[31] Shareholder Information - The Group's ultimate controlling shareholders are Mr. Chu Wai Hang Raymond and Mr. Chu Wai Cheong Wilson[16] - Mr. Raymond Chu holds a long position in the shares of the Company, with an interest in 63,000,000 shares, representing approximately 63.0% of the Company's shareholding[107] - The company has a beneficial interest of 51,000,000 shares, representing 51.0% ownership through Smartview[113] Corporate Governance - The company has complied with all applicable provisions of the Corporate Governance Code, except for code provision C.2.1 regarding the separation of roles of chairman and CEO[121] - Mr. Raymond Chu has served as both Chairman and CEO since September 30, 2021, which the Board believes provides strong leadership[123] - The Board consists of three independent non-executive directors, ensuring a balance of authority in decision-making[124] - The Audit Committee comprises three independent non-executive Directors, including Ms. Elizabeth Law as chairperson, Mr. Lee Wa Lun Warren, and Mr. Szeto Yuk Ting[125] Employee Information - As of June 30, 2024, the Group employed approximately 2,000 employees, an increase from 1,600 employees as of December 31, 2023[103] - Total staff costs for the six months ended June 30, 2024, amounted to HK$124.0 million, compared to HK$223.5 million for the year ended December 31, 2023, indicating a significant reduction in costs[103] - The Group provides both in-house and external training programs for its employees[103]
丽年国际(09918) - 2024 - 中期财报