Financial Performance - The company reported a revenue of HKD 57,091,000 for the six months ended June 30, 2022, a decrease of 34.4% compared to HKD 87,041,000 in the same period of 2021[4]. - Gross profit for the same period was HKD 11,251,000, slightly down from HKD 11,486,000, reflecting a gross margin of approximately 19.7%[4]. - The operating loss for the six months was HKD 9,617,000, compared to an operating profit of HKD 4,029,000 in the previous year[4]. - The net loss attributable to equity holders was HKD 12,488,000, compared to a profit of HKD 1,033,000 in the prior year[4]. - The company reported a total comprehensive loss of HKD 13,775,000 for the period, compared to a comprehensive income of HKD 1,040,000 in the same period last year[5]. - Revenue from Asia (excluding China) was HKD 23,460,000, down 62.8% from HKD 63,103,000 in the previous year[17]. - Revenue from the United States increased significantly to HKD 20,796,000, up 111.5% from HKD 9,804,000 in the previous year[17]. - The company reported a basic loss per share of HKD 0.0154 for the six months ended June 30, 2022, compared to earnings per share of HKD 0.0013 for the same period in 2021[24]. - The group reported a loss attributable to equity shareholders of approximately HKD 12,500,000 for the six months ended June 30, 2022, compared to a profit of HKD 1,000,000 for the same period in 2021[49]. Cash Flow and Assets - Cash and cash equivalents decreased to HKD 35,752,000 from HKD 45,974,000 at the end of the previous year, reflecting a net cash outflow of HKD 9,939,000[10]. - Total assets decreased to HKD 134,014,000 from HKD 145,952,000, while total liabilities decreased to HKD 114,686,000 from HKD 131,505,000[7]. - The company’s equity attributable to shareholders decreased to HKD 133,636,000 from HKD 147,411,000[7]. - The company’s non-current assets in China were valued at HKD 121,770,000 as of June 30, 2022, down from HKD 142,392,000 as of December 31, 2021[18]. - As of June 30, 2022, the net book value of properties, plants, and equipment decreased to HKD 93,214,000 from HKD 110,585,000 at the beginning of the year, reflecting a decline of approximately 15.7%[27]. - Trade receivables as of June 30, 2022, amounted to HKD 31,062,000, down from HKD 37,916,000 at the end of 2021, representing a decrease of about 18.2%[31]. - The company reported a total of HKD 55,359,000 in trade and other receivables as of June 30, 2022, compared to HKD 54,246,000 at the end of 2021, indicating a slight increase of approximately 2.0%[31]. - Bank loans decreased to HKD 76,112,000 as of June 30, 2022, from HKD 81,776,000 at the beginning of the year, a reduction of about 7.5%[34]. Expenses and Liabilities - The company experienced a significant increase in administrative expenses, rising to HKD 18,958,000 from HKD 6,835,000 year-on-year[4]. - The cost of goods sold was HKD 45,840,000, down 39.4% from HKD 75,555,000 in the previous year[19]. - The company’s financial expenses for the period included interest on borrowings of HKD 2,501,000, a slight decrease from HKD 2,557,000 in the previous year[19]. - The company had no outstanding share options as of June 30, 2022, consistent with the previous year[36]. - The total remuneration for key management personnel for the six months ended June 30, 2022, was HKD 1,294,000, a decrease from HKD 1,679,000 in the same period of the previous year, reflecting a decline of approximately 22.9%[41]. Corporate Governance - The company has complied with the corporate governance code, with some deviations noted[68]. - The roles of the chairman and CEO are held by the same individual, Mr. Song Kaiqing, to provide strong leadership[69]. - The audit committee consists of three members, including Mr. Jiang Xingqi as the chairman, overseeing financial reporting and internal control systems[71]. - The company has established a Compensation Committee with a written terms of reference that complies with corporate governance codes[72]. - The Compensation Committee consists of three members, including Ms. Leung Yuen Man (Chair), Mr. Fung Kin Chung, and Mr. Cheung Hing Kei, all of whom are independent non-executive directors[72]. - The company has formed a Nomination Committee with a written terms of reference that aligns with corporate governance code section B.3.1[74]. - The Nomination Committee has five members, chaired by Mr. Fung Kin Chung, and includes Mr. Song Kaiqing, Mr. Cheung Kong Cheung, Ms. Leung Yuen Man, and Mr. Cheung Hing Kei[74]. Shareholder Information - As of June 30, 2022, the company had a total of 808,096,025 shares issued[63]. - Mr. Song Kaiqing holds 288,596,777 shares, representing approximately 35.71% of the company's equity[63]. - Mr. Zhang Gangzhang holds 62,040,465 shares, representing approximately 7.68% of the company's equity[63]. - King Right Holdings Limited, owned by Mr. Song, holds 258,906,777 shares, representing approximately 32.04% of the company's equity[64]. - United Sino Limited, owned by Mr. Zhang, holds 54,840,465 shares, representing approximately 6.79% of the company's equity[64]. Future Outlook - The group remains cautiously optimistic about future recovery despite challenges from the pandemic and market fluctuations[50]. - The group continues to monitor foreign exchange risks and may consider hedging strategies as needed[53].
兴利(香港)控股(00396) - 2022 - 中期财报