Financial Performance - For the six months ended June 30, 2025, the company reported an unaudited consolidated loss attributable to shareholders of HKD 6,064,000, an increase of HKD 65,000 or 1.1% compared to the same period last year [5]. - The consolidated revenue for the period was HKD 34,606,000, a decrease of HKD 7,512,000 or 17.8% compared to the same period last year [9]. - Revenue for the six months ended June 30, 2025, was HKD 34,606,000, down 17.9% from HKD 42,118,000 in 2024 [27]. - Gross profit decreased significantly to HKD 469,000, a decline of 91.3% from HKD 5,362,000 in the previous year [27]. - The group reported a pre-tax loss of approximately HKD 6,064,000 for the six months ended June 30, 2025, compared to a loss of HKD 5,999,000 for the same period in 2024 [59]. Assets and Liabilities - The company's unaudited net asset value as of June 30, 2025, was HKD 14,064,000, a decrease of HKD 4,997,000 from December 31, 2024, and a decrease of HKD 33,232,000 from June 30, 2024 [5]. - The company's net current liabilities increased to HKD 28,727,000 as of June 30, 2025, compared to HKD 23,987,000 at the end of 2024 [29]. - Total assets less current liabilities decreased to HKD 18,577,000 from HKD 23,564,000 at the end of 2024 [29]. - As of June 30, 2025, the group's cash and cash equivalents were HKD 3,043,000, a decrease of HKD 376,000 or 11.0% from HKD 3,419,000 on December 31, 2024 [14]. - The group's interest-bearing loan liabilities to equity ratio was 38.4% as of June 30, 2025, compared to 31.2% on December 31, 2024 [15]. Inventory and Procurement - As of June 30, 2025, the group's consolidated inventory was HKD 18,686,000, a decrease of HKD 5,362,000 or 22.3% from HKD 24,048,000 on December 31, 2024 [12]. - The total procurement amount for auxiliary raw materials was HKD 12,382,000, a decrease of 2.7% compared to the same period last year, reflecting effective cost control measures [11]. - The company reported a significant inventory provision reversal of HKD 5,101,000 for the first half of 2025, compared to HKD 10,451,000 in 2024 [31]. Revenue Streams - The external processing business produced 14,325,000 square feet, an increase of 8,013,000 square feet or 127.0% compared to the same period last year [8]. - The total sales volume of cowhide leather was 1,537,000 square feet, a decrease of 1,261,000 square feet or 45.1% compared to the same period last year [9]. - Revenue from leather processing sales was HKD 13,435,000, down 53.0% from HKD 28,606,000 in 2024, while subcontracted leather processing revenue increased to HKD 21,171,000 from HKD 13,512,000 [52]. Cost Management and Efficiency - The company implemented energy-saving measures, including a photovoltaic project that reduced production costs and improved water efficiency, recognized as an advanced industrial enterprise in Jiangsu Province [8]. - The group aims to reduce costs through strict energy-saving measures and improved material management [20]. - The total remuneration paid to key management personnel for the six months ended June 30, 2025, was HKD 458,000, up from HKD 448,000 in the same period of 2024 [74]. Future Plans and Strategies - The group plans to expand its external processing business and optimize raw leather procurement to enhance production capacity utilization [20]. - The group will focus on developing high value-added products to meet market demand for quality leather, enhancing competitiveness [20]. - The company is actively seeking new business opportunities to achieve profitability and enhance operational cash flow [41]. Shareholder Information - Major shareholders include Guangdong Nanyue Group Limited, holding 52% of the shares, and Guangdong Yuehai Holdings Group Limited, holding 19.34% [78]. - The issued and fully paid share capital remained unchanged at HKD 75,032,000, with 538,019,000 ordinary shares as of both June 30, 2025, and December 31, 2024 [66].
南粤控股(01058) - 2025 - 中期财报