Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 16,914,000, a decrease of 13.8% compared to HKD 19,614,000 in 2022[7] - Gross profit for the same period was HKD 4,856,000, resulting in a gross margin of 28.7%, up from 27.1% in 2022[7] - The company reported a loss before tax of HKD 8,175,000, compared to a loss of HKD 9,856,000 in the previous year[9] - The company recorded a net loss attributable to shareholders of HKD 8,443,000, compared to HKD 9,856,000 in 2022[9] - The total comprehensive income for the period resulted in a loss of HKD 8,165,000, which is a decrease from the loss of HKD 9,856,000 in the previous period, indicating an improvement of approximately 17%[30] - The total comprehensive loss for the period was HKD 8,443,000 in 2023 compared to HKD 9,856,000 in 2022, reflecting a decrease in losses of approximately 14.3%[53] Assets and Liabilities - Total assets as of June 30, 2023, were HKD 20,396,000, down from HKD 30,582,000 at the end of 2022[7] - The current ratio decreased to 0.19 from 0.31 in the previous year, indicating a decline in liquidity[7] - The total liabilities as of June 30, 2023, were HKD 73,165,000, compared to HKD 75,598,000 at the end of 2022[16] - As of June 30, 2023, the total liabilities exceeded total assets by approximately HKD 52,769,000, reflecting a significant financial challenge for the company[30] - The company reported a decrease in total assets to HKD 20,396,000 in 2023 from HKD 30,582,000 in 2022, a decline of approximately 33.4%[55] - Total liabilities decreased to HKD 73,165,000 in 2023 from HKD 76,598,000 in 2022, a decline of approximately 4.8%[55] Cash Flow and Financing - Cash and cash equivalents decreased to HKD 1,596,000 from HKD 2,495,000 at the end of 2022[14] - For the six months ended June 30, 2023, the net cash generated from operating activities was HKD 2,115,000, compared to HKD 955,000 for the same period in 2022, representing a 121% increase[21] - The company recorded a net cash outflow from financing activities of HKD 3,083,000 for the six months ended June 30, 2023, compared to HKD 1,063,000 in the same period of 2022, indicating a significant increase in financing costs[21] - The company has received a commitment from an executive director to defer repayment of a loan amounting to HKD 8,000,000 until the company is able to repay, which is crucial for maintaining liquidity[30] - The company has not utilized the additional unsecured interest-free loan facility of up to HKD 30,000,000 provided by the executive director, which is set to mature on August 27, 2025[30] Segment Performance - Revenue from external customers for leather manufacturing decreased to HKD 16,473,000 in 2023 from HKD 18,670,000 in 2022, a decline of approximately 11.5%[53] - Revenue from external customers for leather retail business decreased to HKD 441,000 in 2023 from HKD 944,000 in 2022, a decline of approximately 53.3%[53] - The leather manufacturing segment generated revenue of approximately HKD 16,473,000, a decrease of approximately 11.8% from HKD 18,670,000 in the previous year[107] - The leather retail segment's revenue decreased by approximately HKD 503,000 to about HKD 441,000, impacted by a weak economy and increased outbound travel from Hong Kong[110] - The leather manufacturing segment recorded an operating loss of approximately HKD 3,514,000, an improvement of about 22.6% compared to the previous year's loss of HKD 4,540,000[109] - The leather retail segment incurred an operating loss of approximately HKD 1,373,000, compared to a loss of HKD 928,000 in the previous year, due to slow economic recovery and the absence of one-time income[114] Business Outlook and Strategy - The company anticipates that the situation in the second half of 2023 will remain challenging due to ongoing geopolitical risks and concerns about the global economic outlook[115] - The company plans to diversify its business into industrial hemp cultivation and hemp textile production, having obtained necessary permits and land leases in Yunnan[116] - The board believes that successful implementation of the business plan will diversify the product portfolio and revenue sources, enhancing long-term profitability[116] Shareholder Information - As of June 30, 2023, Zhao Jingfei holds 256,024,406 shares, representing 66.90% of the company's ordinary shares[131] - Waterfront Holding Group Co., Ltd. is the beneficial owner of 256,024,406 shares, also representing 66.90%[135] - The company has not adopted any new share option schemes since the previous one expired on February 17, 2013[136] - No share buybacks, redemptions, or sales of listed securities occurred within the six months ending June 30, 2023[140] Compliance and Governance - The audit committee, consisting of three independent non-executive directors, reviewed the interim financial statements for the six months ending June 30, 2023[149]
中联发展控股(00264) - 2023 - 中期财报