Financial Performance - Revenue for the six months ended June 30, 2025, was HK$103,007,000, a significant increase of 124.5% compared to HK$45,999,000 for the same period in 2024[13] - Gross profit for the reporting period was HK$16,054,000, down 11% from HK$18,031,000 in the prior year[13] - Operating profit decreased to HK$3,079,000, a decline of 71.6% from HK$10,843,000 in the first half of 2024[13] - Profit for the period was HK$1,540,000, representing a decrease of 84.5% compared to HK$9,949,000 in the same period last year[13] - Total comprehensive income for the period was HK$3,667,000, down 54.7% from HK$8,109,000 in the previous year[15] - Basic and diluted earnings per share decreased to 0.2 HK cents from 1.2 HK cents in the first half of 2024[15] - The profit for the period ended June 30, 2025, was HK$1,540,000, compared to HK$9,949,000 for the same period in the previous year, indicating a decrease of approximately 84.5%[21] - Profit attributable to owners of the Company was approximately HK$1.5 million for the Reporting Period, down from approximately HK$9.9 million for 1H 2024[160] Expenses and Costs - Selling and distribution expenses increased to HK$3,532,000, up 243.5% from HK$1,028,000 in 2024[13] - Administrative expenses rose to HK$8,564,000, an increase of 14% from HK$7,531,000 in the previous year[13] - Finance costs increased significantly to HK$946,000 from HK$10,000 in the same period last year[13] - The cost of inventories and consumables rose sharply to HK$82,197,000 in 2025 from HK$23,055,000 in 2024, indicating an increase of about 257%[51] - The Group's costs of sales increased by approximately 210.7% or HK$59.0 million to HK$87.0 million for the Reporting Period, primarily due to increased revenue from machinery and minerals[152] Assets and Liabilities - As of June 30, 2025, total assets increased to HK$169,454,000 from HK$167,967,000 as of December 31, 2024, representing a growth of approximately 0.87%[16] - Current assets rose to HK$141,003,000, up from HK$145,088,000, indicating a decrease of about 2.5%[18] - Trade receivables increased significantly to HK$33,060,000, compared to HK$24,764,000, reflecting a growth of approximately 33.5%[16] - Total equity attributable to owners of the Company reached HK$139,097,000, up from HK$135,430,000, marking an increase of about 2.47%[21] - Non-current liabilities decreased to HK$1,522,000 from HK$2,162,000, a reduction of approximately 29.6%[18] - Current liabilities decreased to HK$28,835,000 from HK$30,375,000, showing a decline of about 5.1%[18] Cash Flow - For the six months ended June 30, 2025, the company reported a net cash used in operating activities of HK$8,382,000, a significant decrease from the net cash generated of HK$8,304,000 in the same period of 2024[29] - The company incurred a net cash used in investing activities of HK$10,280,000, compared to only HK$129,000 in the prior year, primarily due to the acquisition of a life insurance contract costing HK$8,528,000[29] - Financing activities generated a net cash inflow of HK$10,781,000, a recovery from a net cash outflow of HK$24,247,000 in the previous year, largely due to bank borrowings raised amounting to HK$46,713,000[29] - The total cash and cash equivalents at the end of the period were HK$51,362,000, an increase from HK$38,748,000 at the end of June 2024[29] - Cash and cash equivalents decreased to HK$51,362,000 from HK$59,452,000, a decline of about 13.5%[16] Business Operations - The company is an investment holding company primarily engaged in the manufacturing and trading of slewing rings, mechanical parts, and components, as well as trading of machineries and minerals[31] - The Group is a leading premium slewing ring manufacturer in the PRC, also providing mechanical parts and components for construction and mining sites[93] - The Group expanded its product offerings to include mechanical parts such as sprockets, track shoes, and rollers, alongside slewing rings, on an ODM basis[95] - The Group has developed new products since 2020 to meet customer needs and seize business opportunities[94] - The Group has been supplying slewing rings under OEM basis to leading suppliers in Japan for over 10 years, enhancing its sourcing capabilities[95] Market Conditions - The global economic situation has continued to deteriorate in 2025, affecting the Group's business environment[97] - The economic recovery in Hong Kong and the PRC has not met expectations due to various challenges, including the property market slump[97] - The overall economic environment remains challenging, with high interest rates and uncertainties affecting global business conditions[99] - The Group's management emphasizes the importance of identifying new business opportunities to navigate market competition and economic uncertainties[99] Shareholder Returns - The company paid dividends totaling HK$16,000,000 during the period[21] - The Board does not recommend the payment of an interim dividend for the reporting period, reflecting a conservative approach to cash distribution[60] - The Board does not recommend the payment of an interim dividend for the reporting period, consistent with the previous year[188] Regulatory and Compliance - The company is currently assessing the impact of new accounting standards that have been issued but are not yet effective, which may affect future reporting periods[37] - The company’s legal reserve requires a minimum allocation of 10% of the after-tax profits before distributing dividends to shareholders, ceasing once the total reserve exceeds 50% of the registered capital[26] - The company has not established any agreements or purchased instruments to hedge against foreign exchange risks, primarily involving USD and RMB[189] - The company closely monitors exchange rate fluctuations to manage foreign exchange risks[189] - The directors believe that foreign exchange risk related to USD is not significant due to the peg of HKD to USD[190] Employee and Management - As of June 30, 2025, the Group had 97 employees, an increase from 84 employees as of December 31, 2024[175] - Key management compensation for the six months ended June 30, 2025, was HK$1,437,000, an increase from HK$1,329,000 in the same period of 2024[87]
永联丰控股(09882) - 2025 - 中期财报