Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 569,928,000, an increase of 35.2% compared to HKD 421,909,000 for the same period in 2021[6] - Gross profit for the same period was HKD 86,808,000, representing a gross margin of 15.2%, up from HKD 77,618,000 in 2021[6] - Net profit for the six months ended June 30, 2022, was HKD 14,742,000, a decrease of 61.9% from HKD 38,774,000 in 2021[12] - Basic earnings per share for the period was HKD 1.05, down from HKD 2.49 in the previous year[13] - For the six months ended June 30, 2022, the total comprehensive income amounted to HKD 31,334,000, compared to HKD 42,193,000 for the same period in 2021, representing a decrease of approximately 25.7%[22] - The net profit attributable to shareholders for the period was HKD 16,066,000, a decrease of 58.14% from HKD 38,381,000 in the previous year, primarily due to provisions for investments in R&F bonds[80] Assets and Liabilities - Total assets as of June 30, 2022, were HKD 4,820,019,000, compared to HKD 4,490,278,000 as of December 31, 2021[20] - Current assets decreased to HKD 2,820,242,000 from HKD 3,017,236,000 in the previous year[18] - Total liabilities decreased to HKD 2,369,989,000 from HKD 2,490,262,000[20] - The company’s retained earnings as of June 30, 2022, stood at HKD 1,149,774,000, compared to HKD 1,225,758,000 as of June 30, 2021, showing a decrease of about 6.2%[22] - Trade receivables as of June 30, 2022, totaled HKD 229,279,000, showing a decrease from HKD 251,382,000 as of December 31, 2021[54] - Trade payables as of June 30, 2022, amounted to HKD 169,755,000, down from HKD 228,651,000 as of December 31, 2021[55] Cash Flow - The net cash flow used in operating activities for the six months ended June 30, 2022, was HKD (32,033,000), an improvement from HKD (69,425,000) in the same period of 2021[23] - The company reported a net cash inflow from investing activities of HKD 375,716,000 for the six months ended June 30, 2022, compared to HKD 62,497,000 in the previous year, indicating a significant increase[23] - As of June 30, 2022, the cash and cash equivalents balance was HKD 2,059,071,000, up from HKD 1,688,718,000 at the end of June 2021, reflecting a year-over-year increase of approximately 22%[23] - The group’s cash and cash equivalents decreased by 4.56% to HKD 2,446,067,000 from HKD 2,562,846,000 at the end of the previous year[81] Dividends - The company declared an interim dividend of HKD 2.00 per share, unchanged from the previous year[13] - The group declared an interim dividend of HKD 4.00 per share, totaling HKD 61,119,000, compared to HKD 64,820,000 in the previous year[47] - The company paid dividends totaling HKD (61,119,000) for the six months ended June 30, 2022, consistent with the previous year's payment of HKD (64,820,000)[22] Share Capital and Equity - The average number of ordinary shares issued during the period was 1,527,986,000, compared to 1,541,098,000 in the previous year[48] - As of June 30, 2022, the total issued share capital was 1,527,984,000 shares, with a par value of HKD 0.10 per share[58] - The total issued share capital decreased slightly from 1,530,028,000 shares to 1,527,984,000 shares due to the cancellation of repurchased shares[59] - The company’s total equity attributable to equity holders decreased to HKD 2,436,991,000 as of June 30, 2022, from HKD 2,573,321,000 as of June 30, 2021, a decline of approximately 5.3%[22] Operational Segments - Total revenue for the group reached HKD 583,471,000, with significant contributions from interior design and renovation engineering (HKD 330,834,000) and export business (HKD 185,919,000) [33] - The interior design and renovation segment saw a significant increase of 41.81%, with revenue rising to HKD 330,540,000 from HKD 233,082,000[81] - The export business revenue increased by 39.77%, reaching HKD 183,129,000 compared to HKD 131,017,000 in the previous year[81] - The financial investment segment experienced a decline of 5.87%, with revenue falling to HKD 26,120,000 from HKD 27,750,000[81] - The group reported a net loss in the financial investment segment of HKD 14,695,000, while the export business generated a profit of HKD 16,736,000 [33] Management Outlook - The company is actively seeking growth opportunities despite challenges posed by the pandemic and global inflation[80] - The management remains cautious about the economic outlook for the second half of the year, influenced by ongoing uncertainties[78] - The management's outlook for the second half of 2022 remains cautious due to ongoing pandemic uncertainties and potential economic recession risks[90] Corporate Governance - The company has complied with the corporate governance code, except for the deviation regarding the attendance of the chairman at the annual general meeting due to COVID-19 restrictions[102] - The audit committee, consisting of three independent non-executive directors, reviewed the accounting principles and internal controls for the six months ending June 30, 2022[105] - The interim results report for the six months ending June 30, 2022, was reviewed and approved by the audit committee[105] Investments - The expected credit loss provision for listed debt investments amounted to HKD 46,857,000, a significant increase from a reversal of HKD 191,000 in the previous year [52] - The company’s bond investments had a total net value of HKD 414,708,000 as of June 30, 2022, a decrease of 48.8% from the previous year-end value of HKD 809,888,000[89] - The investment portfolio's net asset value decreased to HKD 414,708,000 as of June 30, 2022, down from HKD 809,888,000 at the beginning of the period, reflecting a reduction of HKD 395,180,000 due to bond redemptions and impairment provisions[89] Employee Information - The total number of employees increased to 495 as of June 30, 2022, compared to 481 at the end of 2021[90]
旭日企业(00393) - 2022 - 中期财报