Financial Performance - Net profit surged by 37% to HKD 71,022,000, while revenue decreased to HKD 3,906,365,000, reflecting challenges in the current market environment [5]. - The company reported a profit of HKD 71,022,000 for the six months ended June 30, 2024, compared to HKD 51,819,000 in the same period of 2023, representing a year-over-year increase of 37.1% [16]. - Gross profit for the period was HKD 350,489,000, up from HKD 289,696,000 in the previous year, indicating a growth of 21% [16]. - Basic and diluted earnings per share increased to HKD 12.01 from HKD 7.33, reflecting a significant rise of 63.5% [16]. - Total revenue for the six months was HKD 3,906,365,000, compared to HKD 4,371,945,000 in the prior year, showing a decrease of 10.6% [16]. - The company reported a pre-tax profit of HKD 89,096 for the six months ended June 30, 2024, compared to HKD 72,287 for the same period in 2023, reflecting an increase of approximately 23.2% [31][38]. Revenue and Segment Performance - Distribution business revenue contracted by 11% to HKD 3,752,163,000, but segment profit increased by 4% to HKD 113,970,000 due to higher-margin value-added products [10]. - Revenue from information technology products was HKD 2,858,127, down from HKD 3,180,478, indicating a decrease of about 10.1% [30]. - The company reported a rental income of HKD 60,614 from hotel operations, an increase from HKD 44,856 in the previous year, reflecting growth in this segment [30]. - The total operating profit from Thailand was HKD 102,737, while Hong Kong contributed HKD 11,233, indicating a strong performance in Thailand [32]. Investment and Asset Management - The fair value of the property investment portfolio decreased by HKD 55,419,000, with a significant loss of HKD 90,315,000 in the Hong Kong market, while the Japanese market showed a profit of HKD 34,896,000 [11]. - Investment in the US stock market yielded a segment profit of HKD 62,659,000, up from HKD 29,767,000 in the previous year [11]. - The company is actively exploring new investment opportunities and focusing on expanding its distribution business and optimizing its real estate investment portfolio [13]. - The company recognized a fair value gain on equity instruments of HKD 6,127,000, compared to HKD 1,464,000 in the previous year, marking a substantial increase of 318.5% [17]. Cash Flow and Financial Position - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 250,710,000, compared to HKD 104,294,000 for the same period in 2023, representing an increase of 140.5% [23]. - The net cash generated from investing activities was HKD 46,628,000, a significant increase from HKD 1,281,000 in the previous year [23]. - The company reported a cash and cash equivalents balance of HKD 1,041,833,000, up from HKD 961,129,000, an increase of 8.4% [18]. - The total cash and cash equivalents as of June 30, 2024, amounted to HKD 1,041,833,000, up from HKD 928,387,000 at the end of June 2023, reflecting a year-on-year increase of 12.2% [23]. - The company’s total liabilities decreased, contributing to a stronger balance sheet position compared to the previous year [38]. Shareholder and Governance Information - The company expressed gratitude to its stakeholders for their unwavering support and commitment during challenging times [14]. - Major shareholders Yang Shengcong and Lin Meihua each hold 5.26% of the company's issued share capital, totaling 14,614,000 shares [80]. - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules throughout the reporting period [81]. - The audit committee, composed entirely of independent non-executive directors, reviewed the interim report for the six months ending June 30, 2024 [83]. Employee and Remuneration Details - The number of employees as of June 30, 2024, was 1,193, an increase from 1,168 as of June 30, 2023 [65]. - Total salaries and benefits paid and payable to employees (excluding directors' remuneration) amounted to HKD 146,615,000, up from HKD 101,520,000 in the previous year [65]. - The remuneration paid or payable to directors amounted to HKD 8,434,000, an increase from HKD 7,854,000 for the same period last year [54]. - The company has adopted an employee stock option plan to enhance employee productivity and retention [65]. Debt and Financing Activities - New bank borrowings for the period were HKD 2,077,302,000, slightly down from HKD 2,212,965,000 in the same period last year [23]. - The company recorded a significant gain from the sale of financial instruments at fair value, amounting to HKD 88,371,000, with no comparable figure from the previous year [23]. - The company’s cash flow from financing activities showed a net outflow of HKD 180,479,000, compared to HKD 10,634,000 in the previous year, indicating a significant increase in financing activities [23].
SIS INT'L(00529) - 2024 - 中期财报