Financial Performance - The company reported a revenue of HKD 299,714,000 for the six months ended December 31, 2024, a decrease of 47.3% compared to HKD 567,572,000 in the same period of 2023[4] - Gross profit increased to HKD 25,568,000, up 38.5% from HKD 18,434,000 year-on-year[4] - The company recorded a pre-tax loss of HKD 30,068,000, an improvement of 56.7% compared to a loss of HKD 69,469,000 in the previous year[5] - The net loss for the period was HKD 26,572,000, a reduction of 55.1% from HKD 59,177,000 in the same period last year[5] - Total comprehensive income for the period was HKD -33,279,000, compared to HKD -22,350,000 in the previous year[7] - Basic and diluted loss per share was HKD 0.22, an improvement from HKD 0.49 in the same period of 2023[7] - The total comprehensive income for the six months ended December 31, 2024, was a loss of HKD 32,960,000, compared to a loss of HKD 21,882,000 in the previous period, indicating a worsening financial performance[12] - The company reported a total comprehensive loss of HKD 30,068,000 for the six months ending December 31, 2024, compared to a loss of HKD 69,469,000 for the same period in 2023, showing an improvement of approximately 56.7%[27] Assets and Liabilities - Non-current assets totaled HKD 988,639,000, a slight decrease from HKD 1,008,628,000 as of June 30, 2024[9] - Current assets decreased to HKD 300,155,000 from HKD 358,687,000 as of June 30, 2024[9] - Total equity decreased to HKD 766,676,000 from HKD 798,726,000 as of June 30, 2024[10] - The cash and cash equivalents decreased by HKD 18,581,000 during the six months ended December 31, 2024, while there was an increase of HKD 22,774,000 in the same period of 2023[15] - The total equity as of December 31, 2024, was HKD 766,676,000, down from HKD 865,805,000 as of December 31, 2023, reflecting a decline in shareholder equity[12] - The company’s total assets as of December 31, 2024, were not explicitly stated but can be inferred to have decreased given the decline in total equity and cash reserves[12] - Trade receivables as of December 31, 2024, amounted to HKD 62,421,000, down from HKD 84,113,000 as of June 30, 2024, reflecting a decrease of about 25.8%[50] - The asset-liability ratio as of December 31, 2024, was 0.30, with total borrowings of approximately HKD 229,000,000 against shareholder equity of about HKD 767,000,000[82] Cash Flow and Financing - The net cash generated from operating activities for the six months ended December 31, 2024, was HKD 17,101,000, compared to HKD 6,254,000 for the same period in 2023, representing a significant increase[13] - The company reported a net cash outflow from financing activities of HKD 38,520,000 for the six months ended December 31, 2024, compared to a net inflow of HKD 10,342,000 in the previous year[13] - Interest paid on borrowings decreased to HKD 6,346,000 in the six months ended December 31, 2024, from HKD 8,428,000 in the same period of 2023, indicating reduced financing costs[13] - Financing costs totaled HKD 8,640,000 for the six months ended December 31, 2024, slightly up from HKD 8,523,000 in 2023, reflecting a marginal increase of 1.4%[35] - The company raised new borrowings of HKD 43,412,000 during the six months ended December 31, 2024, compared to HKD 99,401,000 in the same period last year[59] Revenue Breakdown - Revenue from the China market for the six months ending December 31, 2024, was HKD 244,429,000, significantly lower than HKD 505,712,000 for the same period in 2023, marking a decline of approximately 51.8%[32] - The wire and cable segment generated revenue of approximately HKD 92,846,000, a decrease of about 20.6% year-on-year, accounting for approximately 31.0% of total revenue[69] - The copper rod business reported revenue of approximately HKD 196,284,000, a decrease of about 55.9% year-on-year, representing approximately 65.5% of total revenue[69] - Revenue from mainland China and Hong Kong dropped by approximately 51.0% year-on-year to about HKD 251,316,000, representing about 83.9% of total revenue[71] - Revenue from the Americas decreased by approximately 29.7% year-on-year to about HKD 13,234,000, accounting for about 4.4% of total revenue[71] Segment Performance - The reported loss for the cable and wire manufacturing segment was HKD 13,864,000, while the copper trading segment reported a profit of HKD 5,654,000, leading to a total segment loss of HKD 18,641,000 for the six months ending December 31, 2024[23] - The investment property segment recorded a loss of HKD 10,431,000 for the six months ending December 31, 2024, compared to a loss of HKD 36,815,000 in the same period of 2023[24] - The fair value change of investment properties resulted in a loss of HKD 13,983,000 for the six months ending December 31, 2024, compared to a loss of HKD 41,167,000 in the same period of 2023[23] Corporate Governance and Compliance - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from July 1, 2024, which did not have a significant impact on its financial performance or position[18] - The company did not recommend any dividend payment for the six months ended December 31, 2024, consistent with the previous year[38] - The company has complied with the gender diversity requirement of having at least one female director by December 31, 2024[129] - The independent non-executive directors have served on the board for over nine years, requiring shareholder approval for their reappointment[131] - The company continues to evaluate the effectiveness of its corporate governance structure, including the separation of the roles of chairman and CEO[140] Strategic Plans and Future Outlook - The company plans to enhance its core competitiveness by increasing investment in R&D and expanding into new markets such as renewable energy and AI applications[78] - The company aims to implement a major customer strategy to deepen cooperation with key clients and explore industry transformation paths[78] - The company will optimize its management system to improve operational efficiency and reduce resource waste[78] - The company plans to sell assets to save significant maintenance and development costs, reduce real estate market risks, and improve liquidity and financial condition[104] Asset Disposal - The company announced a significant sale of 100% equity in Dongguan Huayi Copper Industry Co., Ltd. for a cash consideration of RMB 70,000,000 (approximately HKD 77,000,000)[91] - The sale constitutes a very substantial disposal as the applicable percentage exceeds 75%, requiring compliance with the listing rules for disclosure and shareholder approval[105] - A special general meeting for shareholder approval of the equity transfer agreement is scheduled for February 17, 2025[106] - Upon completion of the sale, the seller will no longer hold any interest in the target company, which will cease to be a subsidiary of the group[107]
星凯控股(01166) - 2025 - 中期财报