Financial Performance - Revenue for the six months ended June 30, 2022, was HK$3,516,625, an increase of 9.3% compared to HK$3,218,999 for the same period in 2021[16]. - Gross profit decreased to HK$406,210, down 10.6% from HK$454,662 in the previous year[16]. - Profit for the period attributable to owners of the Company was HK$70,327, a decline of 48.2% from HK$136,248 in the prior year[16]. - Basic and diluted earnings per share were both HK 5.7 cents, down from HK 11.1 cents in the same period last year[16]. - Other revenue decreased to HK$31,233, down 22.7% from HK$40,408 in the previous year[16]. - Profit before income tax expense was HK$114,084, down 39.5% from HK$188,942 in the same period last year[16]. - Profit for the period decreased to HK$87,463,000 from HK$151,721,000, representing a decline of approximately 42.4% year-over-year[19]. - Total comprehensive income for the period attributable to owners of the Company was HK$56,768,000, down from HK$139,970,000, a decrease of about 59.3%[19]. - EBITDA for the six months ended June 30, 2022, was HK$210,160,000, a decrease of 26.3% from HK$285,092,000 in 2021, with an EBITDA margin of 6.0% compared to 8.9% in the prior year[120]. - Profit attributable to owners of the Company for 1H2022 was approximately HK$70,000,000, down from approximately HK$136,000,000 in 1H2021[98]. Expenses and Costs - Distribution and selling expenses were HK$54,608, a decrease of 20.1% compared to HK$68,334 in the prior year[16]. - Administrative expenses increased to HK$236,075, up from HK$224,981 in the previous year[16]. - Employee costs for the six months ended June 30, 2022, were HK$476,882, a decrease from HK$507,252 in 2021, representing a decline of 6.0%[65]. - Finance costs decreased to HK$7,264 for the six months ended June 30, 2022, from HK$7,850 in the same period of 2021, a reduction of 7.4%[59]. - Total distribution and selling expenses amounted to HK$54,608,000, representing 1.6% of total revenue, down from 2.1% in the previous year[126]. - Administrative expenses for the period were HK$236,075,000, accounting for 6.7% of total revenue, a slight decrease from 7.0% in the same period last year[127]. Assets and Liabilities - Non-current assets decreased to HK$1,698,559,000 from HK$1,728,511,000, reflecting a reduction of approximately 1.7%[20]. - Current assets increased slightly to HK$4,023,556,000 from HK$4,019,879,000, showing a marginal growth of 0.1%[20]. - Total equity attributable to owners of the Company decreased to HK$3,421,002,000 from HK$3,560,238,000, a decline of approximately 3.9%[21]. - Bank borrowings due within one year increased to HK$474,096,000 from HK$327,342,000, representing a rise of about 44.8%[21]. - The Group's total liabilities were HK$2,087,598,000, an increase from HK$1,989,292,000 at the end of 2021[132]. - The Group's bank balances and cash amounted to HK$1,127,065,000, up from HK$824,979,000 at the end of 2021[135]. Cash Flow and Investments - Net cash generated from operating activities for the six months ended June 30, 2022, was HK$181,008,000, compared to a cash outflow of HK$175,903,000 in the same period of 2021[25]. - The net cash used in investing activities was HK$33,004,000 for the six months ended June 30, 2022, compared to HK$10,233,000 in the same period of 2021[25]. - The Group incurred capital expenditure of HK$56,884,000 on property, plant, and equipment during the six months ended June 30, 2022, compared to HK$47,340,000 in the same period last year[74]. Market and Economic Conditions - Global economic growth is expected to slow to 2.9% in 2022 due to the spillover effects of the war and exacerbated geopolitical tensions[113]. - Continued high inflation has resulted in economic downturns and a decline in commodity prices from high levels[113]. - Supply disruptions, increased food insecurity, and rising borrowing costs present significant downside risks to the growth outlook[113]. - The median value of annual aggregate consumer price inflation in East Asia and the Pacific is expected to exceed 3% in 2022, impacting overall market conditions[119]. Corporate Governance and Compliance - The company complied with all applicable code provisions of the Corporate Governance Code throughout the reporting period[155]. - The audit committee, composed of three independent non-executive directors, reviewed the unaudited consolidated interim results for 1H2022[160]. - The company has established an audit committee to supervise financial reporting, risk management, and internal control systems[157]. Workforce and Operations - The Company operates 7 production facilities across China, Sri Lanka, and Indonesia, with a global workforce of approximately 7,100 employees[4]. - The Group's total trade and bills payables as of June 30, 2022, were HK$711,503,000, down from HK$956,450,000 as of December 31, 2021, indicating a decrease of 25.7%[81]. - The Group continues to implement streamlined production to minimize labor costs[138].
福田实业(00420) - 2022 - 中期财报