Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 161,136,000, a 2% increase from HKD 157,881,000 in the same period of 2021[3] - The company reported a loss of HKD 29,617,000 for the period, compared to a profit of HKD 14,425,000 in the previous year[3] - Basic and diluted loss per share was HKD 3.21 cents, compared to earnings of HKD 1.45 cents per share in the prior year[3] - Total comprehensive loss for the period was HKD 35,742,000, compared to a comprehensive income of HKD 35,862,000 in the same period last year[8] - The company reported a comprehensive loss before tax of HKD 26,961,000 for the six months ended June 30, 2022, compared to a profit of HKD 13,744,000 for the same period in 2021[41] - The company reported a loss attributable to ordinary shareholders of HKD 30,502,000 for the six months ended June 30, 2022, compared to a profit of HKD 13,740,000 for the same period in 2021[56] - The total tax expense for the period was HKD 2,656,000, compared to a tax credit of HKD 681,000 in the previous year[55] Assets and Liabilities - Non-current assets, including investment properties, amounted to HKD 2,058,025,000, slightly down from HKD 2,059,744,000 at the end of 2021[10] - Current liabilities decreased to HKD 455,565,000 from HKD 467,946,000 at the end of 2021[10] - The company's net assets stood at HKD 2,233,790,000, down from HKD 2,269,532,000 at the end of the previous year[12] - The group recorded a net current liability of HKD 143,367,000 as of June 30, 2022, compared to HKD 82,975,000 as of December 31, 2021[21] - Total liabilities as of June 30, 2022, amounted to HKD 671,443,000, up from HKD 629,724,000 as of December 31, 2021, indicating an increase of 6.6%[45] - Total assets reported as of June 30, 2022, were HKD 2,905,233,000, compared to HKD 2,899,256,000 as of December 31, 2021, showing a slight increase of 0.2%[46] Cash Flow - For the six months ended June 30, 2022, the net cash generated from operating activities was HKD 17,722,000, a decrease from HKD 63,946,000 for the same period in 2021[16] - The net cash used in investing activities amounted to HKD (57,108,000), compared to HKD (42,007,000) in the previous year[16] - The net cash generated from financing activities was HKD 39,447,000, a significant increase from HKD (8,570,000) in the prior year[16] - Cash and cash equivalents as of June 30, 2022, were HKD 84,170,000, down from HKD 88,050,000 at the end of the previous year[21] - Cash and cash equivalents amounted to HKD 84,170,000 as of June 30, 2022, compared to HKD 88,050,000 at the end of 2021[67] Revenue Sources - Rental income from investment properties for the same period was HKD 24,686,000, slightly down from HKD 24,706,000 in the previous year[28] - Revenue from toys and model trains was approximately HKD 136.45 million, an increase of about 2.46% compared to the same period last year[87] - The company has diversified its customer base, with no single customer accounting for more than 10% of total revenue in both 2021 and 2022[28] - The group has no customer transactions exceeding 10% of its revenue as of June 30, 2022, indicating a diversified customer base[99] Operational Insights - The company continues to explore new strategies for market expansion and product development to improve future performance[3] - The company expects higher sales in the second half of the year due to increased demand for toys and model trains during the festive season[51] - The company plans to continue exploring new sales opportunities and producing high-quality products at competitive prices[88] - The group plans to diversify its business, explore sales opportunities, enhance production efficiency, and strengthen cost control measures to maintain operations amid economic challenges[103] Employee and Governance - The group employed 1,090 full-time employees as of June 30, 2022, an increase from 941 employees as of June 30, 2021, with employee costs amounting to approximately HKD 83.66 million, up from HKD 78.43 million in the same period last year[102] - The company has complied with all provisions of the Corporate Governance Code during the review period, except for the separation of roles between the chairman and the CEO[124] - The audit committee has reviewed the main accounting policies and discussed audit, internal control, and financial reporting matters for the six months ending June 30, 2022[125] - All directors confirmed compliance with the standard code for securities trading during the review period[127] Risks and Challenges - The group identified various risks affecting its financial condition and operational performance, including business, interest rate, liquidity, customer, and foreign exchange risks[95][96][97][98][99][100] - The group faces foreign exchange risks primarily from transactions denominated in GBP, RMB, JPY, EUR, and AUD due to currency fluctuations[100] - The group actively manages liquidity risk by monitoring cash flow and negotiating bank financing as necessary[98] Shareholder Information - As of June 30, 2022, the major shareholders held significant stakes, with Mr. Ding Wu Shou owning 57.86% of the issued share capital[105] - Forest Crimson Limited holds 209,671,000 shares, representing 22.06% of the issued share capital[118] - Mr. Ding He Shou and Ms. Zeng Yong Xuan collectively own 53,469,948 shares, accounting for 5.62% of the total equity[119] Property and Investments - The company recognized a loss of HKD 3,550,000 on investment properties during the period, compared to a gain of HKD 23,995,000 in the previous year[62] - The company acquired property, plant, and equipment at a total cost of HKD 12,889,000 for the six months ended June 30, 2022, down from HKD 17,016,000 in the same period of 2021[60] - As of June 30, 2022, the group's net asset value of investment properties and certain leased lands and buildings was approximately HKD 1.95136 billion, a slight decrease from HKD 1.96757 billion as of December 31, 2021[93] - No significant acquisitions or disposals occurred during the six months ending June 30, 2022[94] Accounting and Financial Policies - The group’s accounting policies remain consistent with those applied in the previous financial year, with no significant impact from new standards adopted[23] - The company incurred financial costs of HKD 4,034,000 for the six months ended June 30, 2022, compared to HKD 3,440,000 for the same period in 2021, representing an increase of 17.3%[49] - The cost of inventory for the six months ended June 30, 2022, was HKD 78,182,000, down from HKD 83,456,000 in the same period of 2021, reflecting a decrease of 6.5%[50] - Depreciation expenses for owned properties, plants, and equipment were HKD 16,332,000 for the six months ended June 30, 2022, compared to HKD 14,286,000 in the same period of 2021, indicating an increase of 14.4%[50]
开达集团(00180) - 2022 - 中期财报