Financial Performance - For the six months ended June 30, 2025, Litu Holdings Limited reported revenue from continuing operations of approximately HK$307.9 million, a decrease of 3.9% compared to HK$318.6 million for the same period in 2024[11]. - Profit attributable to owners of the Company for the same period was approximately HK$3.0 million, down 89.6% from HK$28.8 million in the prior year[11]. - Basic earnings per share decreased to approximately HK$0.002, compared to HK$0.018 for the six months ended June 30, 2024[11]. - Gross profit decreased to approximately HK$58.9 million, with a gross profit margin of 19.1%, down from 24.8% in the previous period[29]. - Profit before taxation decreased to HK$10,528,000, a decline of 75.5% compared to HK$42,965,000 in the previous year[113]. - Profit for the period from continuing operations was HK$2,950,000, significantly lower than HK$31,687,000 in the same period last year[113]. - Profit for the period attributable to owners of the Company for the six months ended June 30, 2025, was HK$2,950,000, a decrease of 90.7% compared to HK$31,687,000 in 2024[114]. Revenue Breakdown - Revenue from the printing and manufacturing segment decreased by 7.1% to HK$280.1 million, primarily due to falling tender prices and reduced sales orders from major customers[17]. - Revenue from leasing investment properties increased by 63.5% to HK$27.8 million, up from HK$17.0 million in the same period last year, attributed to an increase in leased area[20]. - Revenue from continuing operations for the printing and manufacturing of paper packages was approximately HK$280.1 million, down from HK$301.6 million in the same period of 2024, while leasing of investment properties increased to approximately HK$27.8 million from HK$17.0 million[47]. - Revenue from the sale of goods in continuing operations was HK$280,124,000, down 7.1% from HK$301,621,000 in 2024[143]. - The revenue from printing of cigarette packages was HK$268,372,000, a decrease of 9.7% from HK$297,233,000 in 2024[143]. - The manufacturing of paper packaging materials generated revenue of HK$11,752,000, an increase from HK$4,180,000 in 2024[143]. Cost Management and Efficiency - The Group faced operating pressure due to a decrease in tendering prices in the cigarette industry and intensified competition, prompting a focus on planning and organizing tenders among subsidiaries[13]. - To address profitability challenges, the Group implemented measures including simplifying management structure, enhancing inventory management, and establishing a tendering system for raw material purchases[14]. - The Group centralized its production resources to improve cost control and production efficiency, particularly at its wholly-owned subsidiary in the PRC[19]. - The Group will continue to control costs and improve efficiency to mitigate the pressure from decreasing tender prices in the paper packaging segment[23]. - Staff costs decreased significantly to HK$29,757,000, down 28.6% from HK$41,641,000 in the previous year[173]. Assets and Liabilities - As of June 30, 2025, the Group had net current assets of approximately HK$273.5 million, a decrease from HK$655.4 million as of December 31, 2024[48]. - Bank borrowings amounted to approximately HK$147.9 million as of June 30, 2025, down from HK$207.2 million as of December 31, 2024[52]. - The gearing ratio as of June 30, 2025, was 0.7%, significantly lower than 19.8% as of December 31, 2024[52]. - Current liabilities decreased to HK$398,079,000 from HK$496,574,000 at the end of 2024, reflecting a reduction of 19.8%[117]. - Trade payables decreased to HK$147,757,000 from HK$189,097,000, a reduction of 22%[117]. Strategic Initiatives - The Group plans to increase participation in tenders and allocate additional resources for research and development of new products to expand into other packaging markets[18]. - The Group is actively seeking strategic acquisitions of new investment properties to grow its portfolio, including the acquisition of 86.67% undivided shares of Kam Chung Building for HK$388.0 million[23]. - The Group plans to maximize leasing income through renovations of existing investment properties and aims to generate rental income from the newly acquired property by 2027[23]. Governance and Compliance - The Company has generally complied with the Corporate Governance Code, except for provisions B.2.4(b) and C.2.1[90]. - The Company has confirmed compliance with the Model Code for Directors' Securities Transactions during the review period[96]. - The audit committee has reviewed the financial reporting and internal controls, ensuring compliance with relevant accounting standards[101]. - The independent auditor has confirmed that the condensed consolidated financial statements are prepared in accordance with HKAS 34[109]. Cash Flow and Investments - For the six months ended June 30, 2025, the net cash from operating activities was HK$55,742,000, a decrease from HK$81,631,000 in the same period of 2024, representing a decline of approximately 31.8%[121]. - The company incurred net cash used in investing activities of HK$450,218,000 for the six months ended June 30, 2025, compared to a net cash generated of HK$4,363,000 in the same period of 2024[121]. - New bank borrowings raised during the financing activities amounted to HK$102,228,000, a decrease from HK$166,357,000 in the previous year[121]. - The Group acquired investment properties amounting to approximately HK$407,008,000 in Hong Kong for business expansion, compared to HK$Nil for the same period in 2024[188]. Shareholder Information - The Board did not recommend the payment of an interim dividend for the Period under Review, compared to HK$0.02 per share in 2024[77]. - The Company declared a final dividend of HK$31,358,000 for the year ended December 31, 2024, equivalent to HK$0.02 per share, which was paid during the six months ended June 30, 2025[180]. - As of June 30, 2025, Mr. Cai Xiao Ming, David holds 901,456,892 shares, representing 57.50% of the issued share capital[88]. - Ms. Li Li has an interest in a controlled corporation with 250,551,964 shares, accounting for 15.98% of the issued share capital[84].
力图控股(01008) - 2025 - 中期财报