Financial Performance - Basic earnings per share for the first half of 2023 increased to HK$4.89, up from HK$1.83 in the same period last year, representing a growth of 167.8%[4] - Total revenue for the six months ended June 30, 2023, was HK$124.9 million, a slight decrease of 0.4% compared to HK$125.5 million in the same period of 2022[4] - Profit from operations decreased to HK$33.4 million, down 10.4% from HK$37.3 million in the first half of 2022[4] - Profit for the period surged to HK$38.8 million, compared to HK$14.6 million in the same period last year, marking a significant increase of 166.5%[4] - Profit before tax for the first half of 2023 was HK$44.2 million, an increase of HK$26.6 million from HK$17.6 million in the same period last year, while profit after tax was HK$38.8 million, more than 2.6 times the HK$14.6 million recorded last year[24][25] - For the first half of 2023, the Group's total profit was HK$38.8 million, with an interim dividend recommended at HK$3.7 cents per share, representing a payout ratio of 75.7%[62] Revenue Breakdown - The Identity Management (IDM) segment reported a revenue increase of 31.9% to HK$29.4 million, with segment profit surging more than 1.7 times to HK$6.6 million[14] - The E-Commerce business segment experienced a decline in both revenue and reportable segment profit during the reporting period[12] - Revenue from the Supply Chain Solutions business decreased by 24.5% to HK$9 million, down from HK$11.9 million last year, attributed to delays in project confirmations due to pending government funding approvals[30] - Total revenue from the combined E-Commerce business for the first half of 2023 was HK$79.0 million, representing a decrease of 7.8% compared to HK$85.6 million for the same period last year[53] - Segment profit for the E-Commerce business declined 29.4% year-on-year from HK$29.9 million last year to HK$21.1 million this year, attributed to additional corporate overheads and marketing expenses[53] Market Conditions - The GETS market contracted by 16.3% year-on-year, with revenue from the GETS business at HK$70 million, a slight decrease of 5.1% from HK$73.7 million last year[30] - The overall Government Electronic Trading Services (GETS) market contracted sharply by 16.3% year-on-year, with the company's GETS business in the E-Commerce segment recording a modest drop of 5.1% to HK$70.0 million in revenue for the first half of 2023[53] - The Group expects the GETS market to continue shrinking year-on-year for the remainder of 2023, but anticipates that actual business volumes in the second half will exceed those in the first half[69] Dividends and Shareholder Returns - The interim dividend per share was declared at HK$3.7 cents, up from HK$1.83 cents in the previous year, reflecting a payout ratio of approximately 75%[5] - The Board declared an interim dividend of HK$3.7 cents per share for the six months ended 30 June 2023, an increase of HK$1.87 cents per share compared to HK$1.83 cents in 2022[145] Assets and Liabilities - The Group's total assets as of June 30, 2023, were HK$510.6 million, down from HK$532.6 million as of December 31, 2022[21] - The net assets decreased to HK$344.6 million from HK$364.4 million at the end of 2022[21] - The Group had no borrowings as of 30 June 2023, consistent with the position at the end of 2022[147] Operational Insights - Employee costs for the first half of 2023 were HK$58.9 million, a slight decrease of 0.2% compared to the previous year[90] - Operating expenses before depreciation for the first half of 2023 were HK$87.2 million, up 3.9% from HK$83.9 million in the same period last year[117] - The Group's profit from operations for the review period was HK$33.4 million, a decrease of 10.6% compared to the same period in 2022[119] Future Outlook - The identity management business is expected to continue its strong performance into the second half of the year, driven by increased demand for digital signature solutions and electronic account opening solutions from banks[39] - The company expects the IDM business to continue its strong momentum into the second half of the year, driven by increasing demand for digital signature solutions and digital onboarding solutions from banks[60] - The outlook for the company's business remains uncertain due to continued pressure on Hong Kong's external trading environment, although there are hopes for recovery in the Mainland economy[57] Corporate Governance - The company confirmed compliance with all corporate governance code provisions as of June 30, 2023[191] - The company is committed to maintaining high standards of corporate governance practices[191]
贸易通(00536) - 2023 - 中期财报