Financial Performance - Revenue for the six months ended June 30, 2022, was HK$418,706,000, an increase of 3.9% from HK$403,141,000 in the same period of 2021[12] - Gross profit decreased to HK$53,112,000, down 29% from HK$74,672,000 in the previous year[12] - Loss before tax for the period was HK$48,174,000, compared to a loss of HK$6,057,000 in the same period of 2021[12] - The net loss for the period was HK$48,234,000, significantly higher than the loss of HK$4,447,000 in 2021[14] - Total comprehensive loss for the period amounted to HK$143,616,000, compared to a comprehensive income of HK$8,602,000 in the previous year[17] - The company reported a basic and diluted loss per share of HK$0.65 for the period[15] - Other income decreased to HK$2,065,000 from HK$31,746,000 in the previous year, reflecting a decline of 93.5%[12] - Selling and distribution expenses increased to HK$10,609,000, up from HK$9,615,000 in 2021[12] - Administrative expenses were HK$48,610,000, a decrease from HK$52,574,000 in the previous year[12] - Finance costs decreased to HK$44,018,000 from HK$51,129,000 in the same period of 2021[12] Assets and Liabilities - Total equity decreased from HK$1,104,396,000 as of December 31, 2021, to HK$960,611,000 as of June 30, 2022, representing a decline of approximately 13.0%[25] - Current assets decreased from HK$1,407,099,000 to HK$1,312,825,000, a reduction of about 6.7%[23] - Net current assets fell from HK$219,536,000 to HK$123,978,000, indicating a decline of approximately 43.5%[25] - Non-current liabilities decreased from HK$588,092,000 to HK$487,782,000, a reduction of about 17.0%[25] - Trade receivables dropped significantly from HK$136,689,000 to HK$80,863,000, a decrease of approximately 40.9%[23] - Inventories increased from HK$97,000,000 to HK$107,316,000, reflecting an increase of about 10.5%[23] - The company reported accumulated losses of HK$1,003,063,000 as of June 30, 2022[26] - Cash and cash equivalents slightly decreased from HK$27,433,000 to HK$26,109,000, a decline of about 4.8%[23] - Goodwill decreased from HK$4,032,000 to HK$3,821,000, a reduction of approximately 5.2%[25] - The total assets less current liabilities decreased from HK$1,692,488,000 to HK$1,448,393,000, a decline of about 14.4%[25] Cash Flow and Financing - Net cash flows generated from operating activities for the six months ended June 30, 2022, were HK$106,031,000, a decrease of 13.3% compared to HK$122,271,000 in 2021[33] - The Group reported a net cash flow used in financing activities of HK$102,267,000 for the six months ended June 30, 2022, compared to HK$140,848,000 in 2021, indicating a reduction of 27.4%[33] - As of June 30, 2022, the Group had defaulted on repayments of secured bonds amounting to HK$109,000,000 and unsecured bonds of HK$127,600,000, along with associated interest totaling approximately HK$60,048,000[39] - The Group's cash and cash equivalents stood at approximately HK$26,109,000 as of June 30, 2022, a decrease from HK$27,433,000 at the beginning of the period[33] - The Group is negotiating with investors for further financing, including equity financing, bank borrowing, and issuance of new convertible bonds to improve liquidity[51] Management and Future Plans - Management is focusing on improving operating results and cash flows through cost control measures and prioritizing existing business operations[42] - A shareholder has agreed to provide ongoing financial support to enable the Group to meet its liabilities and continue operations without significant curtailment[47] - The Group may consider disposing of non-financial assets or properties if necessary to improve liquidity[47] - The Directors believe the Group will have sufficient working capital for its current requirements and can remain commercially viable[52] - The preparation of consolidated financial statements on a going concern basis depends on the successful outcome of the mentioned plans, which are subject to uncertainties[53] - The Group plans to continue expanding its existing businesses and exploring potential new profitable ventures[171] Segment Performance - The Group is organized into six reportable operating segments: wine and liquor, food products trading, construction and development, financial leasing, mineral products, and rental[64] - Revenue from food product trading was HK$181,431,000, up 32.5% from HK$136,952,000 in the previous year[84] - Revenue from mineral products decreased to HK$105,345,000, down 9.2% from HK$116,295,000 in 2021[84] - Total revenue recognized at a point in time was HK$286,776,000, compared to HK$253,247,000 in 2021, reflecting a growth of 13.3%[84] - Revenue from rental income was HK$119,124,000, a decrease of 9.9% from HK$132,197,000 in 2021[84] - Financial leasing revenue fell to HK$12,806,000, down 27.8% from HK$17,697,000 in the previous year[84] Legal Matters - The company is involved in litigation regarding a claim for HK$6,069,000 related to the refusal to issue 2,500,000 shares to a former director, with the trial scheduled for December 8, 2022[194] - A statutory demand for HK$20,094,520.55 was filed against the company, but the case has been adjourned indefinitely[197] - Another statutory demand for HK$4,747,254.03 was filed, which has also been adjourned indefinitely, and a winding-up petition was issued but later withdrawn after a settlement[199]
中国北大荒(00039) - 2022 - 中期财报