Financial Performance - Revenue for the six months ended June 30, 2023, was $51,037,000, a decrease of 3.56% compared to $52,918,000 for the same period in 2022[3] - Gross profit for the same period was $4,684,000, down 56.5% from $10,779,000 in 2022[3] - Net profit for the six months ended June 30, 2023, was $300,000, a significant decline of 91.5% compared to $3,546,000 in 2022[4] - Operating profit for the six months ended June 30, 2023, was $704,000, down from $4,941,000 in the same period of 2022, representing a decline of approximately 86.7%[15] - Basic and diluted earnings per share for the six months ended June 30, 2023, were $0.0008, down from $0.0101 for the same period in 2022[18] - The group's graphite business revenue for the same period was approximately 15,000,000 USD, down 6.3% from approximately 16,000,000 USD in the previous year[40] - The electronic manufacturing services revenue for the six months ended June 30, 2023, was approximately 35,900,000 USD, a decrease of about 2.4% from approximately 36,800,000 USD in the same period last year[40] Comprehensive Income - Total comprehensive income for the period was $2,300,000, compared to a loss of $1,665,000 in the same period last year[4] Assets and Liabilities - Current assets as of June 30, 2023, totaled $374,929,000, slightly up from $371,203,000 at the end of 2022[5] - Cash and cash equivalents decreased to $6,170,000 from $12,074,000 at the end of 2022, reflecting a decrease of 48.9%[8] - The company reported a decrease in inventory to $340,130,000 from $332,035,000 at the end of 2022[5] - Non-current assets totaled $37,420,000 as of June 30, 2023, down from $37,939,000 at the end of 2022[5] - The company’s total equity increased to $387,472,000 from $385,172,000 at the end of 2022[6] - The net current assets of the group were approximately 351,300,000 USD as of June 30, 2023, compared to 348,000,000 USD as of December 31, 2022[43] Cash Flow - Operating cash flow for the six months was a net outflow of $6,342,000, compared to an inflow of $7,497,000 in 2022[8] - The group reported a cash and bank balance of approximately 6,200,000 USD as of June 30, 2023, down from approximately 12,100,000 USD as of December 31, 2022[43] Shareholder Information - The company decided not to declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[25] - The weighted average number of ordinary shares issued as of June 30, 2023, was 362,844,073, an increase from 350,331,573 shares for the same period in 2022[18] Management and Governance - The total compensation for key management personnel for the six months ended June 30, 2023, was $1,130,000, a decrease from $2,683,000 for the same period last year[30] - The company has maintained compliance with the corporate governance code, with no significant uncertainties affecting its ability to continue as a going concern[59] - The audit committee consists of three independent non-executive directors, ensuring compliance with listing rules and effective financial reporting oversight[64] - The company has adopted accounting principles and practices reviewed by the audit committee, focusing on internal controls and financial reporting matters[64] Business Operations - The company views its graphite business as the main growth driver, with significant production capabilities established in Madagascar since 2017[34] - The group anticipates challenges in the graphite business due to oversupply and rising production costs, impacting order and production stability in 2023[41] - The outlook for the UK business remains optimistic with a historical high of unfulfilled orders at the beginning of 2023, and the company plans to invest in capital equipment and R&D to enhance production capacity[42] - Axiom Manufacturing Services Limited, a wholly-owned subsidiary in the UK, provides comprehensive outsourcing manufacturing services across various industries[35] Acquisitions and Investments - The group completed a share exchange agreement on October 25, 2022, issuing 250,250,000 shares to acquire 26,000,000 shares of Scientific Energy, Inc. valued at approximately $1,284,000[27] - The acquisition of SEI shares resulted in the company holding a 9.87% equity interest in SEI, while the shareholders of SEI hold a 3.45% interest in the company[36] Future Plans and Utilization of Proceeds - The company utilized approximately HKD 90,134,000 (USD 11,555,600) from the proceeds of the zero-interest convertible bonds for various expenditures, including HKD 32,227,000 (USD 4,131,600) for production lines and HKD 21,796,600 (USD 2,794,400) for factories and warehouses[44] - As of June 30, 2023, the company has unutilized proceeds of approximately HKD 478,866,000 (USD 61,393,100), with planned uses including HKD 194,153,000 (USD 24,891,400) for production lines and HKD 72,503,400 (USD 9,295,300) for factories and warehouses[44] Employee Information - The company employed 344 employees as of June 30, 2023, an increase from 310 in the previous year[52]
谊砾控股(00076) - 2023 - 中期财报