Financial Performance - In the first half of 2022, Greenheart Group reported a significant revenue decrease of HKD 53,631,000, leading to a net loss increase of HKD 62,246,000[18]. - The group recorded an unaudited net loss of HKD 63,511,000 for the period, attributed to decreased revenue from the New Zealand division and impairment provisions related to a deposit of RMB 20,000,000[28]. - Total revenue for the period decreased by 36.1% to HKD 95,107,000, with New Zealand and Suriname divisions generating revenues of HKD 75,076,000 and HKD 20,031,000 respectively[29]. - The group reported a loss attributable to owners of the company of HKD 51,411,000, compared to a profit of HKD 8,923,000 in the same period last year[44]. - Total comprehensive loss attributable to owners was HKD 66,117 thousand for the first half of 2022, compared to a total comprehensive income of HKD 4,256 thousand in the first half of 2021[70]. - The group recorded a gross loss of HKD 5,148,000, compared to a gross profit of HKD 27,155,000 in the previous year, with a gross loss margin of 5.4%[32]. Revenue Breakdown - Revenue from the New Zealand division decreased by 42.0% or HKD 54,304,000 due to weak demand from China, with average export prices down by 27.9% and sales volume down by 24.3%[29]. - The Suriname division recorded total revenue of HKD 20,031,000, a slight increase from HKD 19,358,000 in the previous year, but faced an adjusted EBITDA loss of HKD 4,252,000[21]. - Revenue from the sale of logs and timber products was HKD 90,251,000, down 37.1% from HKD 143,493,000 in the previous year[107]. - Revenue from New Zealand customers accounted for HKD 75,076,000, representing 78.8% of total customer contract revenue[117]. - Revenue from the United States was HKD 3,972,000, contributing 4.2% to total revenue[117]. - The total revenue from the Suriname region was HKD 2,231,000, which is 2.3% of total revenue[117]. Market Conditions - The New Zealand division experienced a 42.0% decline in total revenue and an 80.0% drop in adjusted EBITDA compared to the same period last year, primarily due to reduced demand for logs from China[19]. - The company anticipates ongoing challenges in the second half of 2022 due to geopolitical tensions, inflation concerns, and supply chain issues, particularly affecting demand for New Zealand radiata pine in China[22]. - Fair value losses for plantation assets in New Zealand amounted to HKD 44,323,000, compared to a gain of HKD 24,995,000 in the previous year[19]. - The ongoing extreme rainfall in Suriname has severely impacted logging activities and logistics, hindering the ability to meet market demand despite strong recovery in the market[21]. - Demand for New Zealand radiata pine logs from China decreased by 40%, impacting the group's performance significantly[49]. Asset and Liability Management - As of June 30, 2022, the group's current assets and current liabilities were HKD 176,116,000 and HKD 78,013,000, respectively, with cash and bank balances at HKD 98,556,000[45]. - The group's capital debt ratio was 46.2% as of June 30, 2022, compared to 42.6% on December 31, 2021[45]. - The company's non-current assets decreased from HKD 907,582 thousand as of December 31, 2021, to HKD 823,689 thousand as of June 30, 2022, reflecting a decline of approximately 9.2%[74]. - The company’s total liabilities decreased from HKD 1,008,602 thousand as of December 31, 2021, to HKD 921,792 thousand as of June 30, 2022, indicating a reduction of approximately 8.6%[76]. - The company’s equity attributable to owners decreased from HKD 917,479 thousand at the end of 2021 to HKD 851,362 thousand at the end of June 2022, a decline of about 7.2%[78]. Operational Efficiency - The company has slowed down logging activities to retain more timber for future market recovery[19]. - The group experienced a 67% decline in forestry production in Suriname due to persistent heavy rainfall in the first half of 2022[50]. - The average sales price for tropical wood products in the EU reached a 10-year high, driven by supply chain disruptions and the Ukraine war[21]. - The average selling price of planed timber increased by 64% in the first half of 2022, contributing positively to revenue despite adverse conditions[50]. - The cost of forest depletion due to logging for the six months ended June 30, 2022, was HKD 19,839,000, down from HKD 23,913,000 in 2021, representing a decrease of approximately 17.4%[148]. Cash Flow and Financing - The company reported a net cash outflow from operating activities of HKD 2,089 thousand for the six months ended June 30, 2022, compared to a net cash inflow of HKD 6,639 thousand in the same period of 2021[84]. - Cash and cash equivalents at the end of June 2022 were HKD 98,556 thousand, a decrease from HKD 154,384 thousand at the end of June 2021[84]. - The group’s financing costs amounted to HKD 7,312,000 for the six months ended June 30, 2022, slightly down from HKD 7,809,000 in the previous year, showing a reduction of about 6.4%[147]. - The company extended the maturity date of its bank loan from May 1, 2022, to May 1, 2024, with an interest rate reduced to the benchmark rate plus 1.15%[200]. - Over 99% of trade receivables as of June 30, 2022, were settled subsequently, indicating effective collection efforts[192]. Accounting and Compliance - The unaudited condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standards and the Listing Rules[87]. - The accounting policies used in the unaudited condensed consolidated financial statements for the six months ended June 30, 2022, are consistent with those applied in the previous financial year[88]. - The company has adopted new accounting standards effective from January 1, 2022, which did not have a significant impact on the financial statements[92]. - The company has not identified any significant impacts on its financial position and performance from the adoption of the revised accounting standards[100]. - The company maintains strict control over outstanding receivables to minimize credit risk, with senior management regularly reviewing overdue accounts[189].
绿心集团(00094) - 2022 - 中期财报