Revenue and Profitability - Revenue for the six months ended March 31, 2022, was approximately HK$377,603,000, representing an increase of approximately 16.2% compared to HK$324,972,000 for the same period in 2021[12]. - The profit for the period attributable to the owners of the Company for the six months ended 31 March 2022 was approximately HK$54,083,000, representing an increase of approximately 81.7% compared to HK$29,760,000 for the same period in 2021[15]. - Excluding a one-off non-recurring gain on the disposal of properties of approximately HK$32,692,000, the adjusted profit for the period would be approximately HK$21,391,000, representing a decrease of approximately 28.1% compared to the previous year's HK$29,760,000[15]. - Profit from operations increased to HK$57,586,000, a 58.6% rise compared to HK$36,339,000 in the previous year[78]. - Profit before tax for the period was HK$57,480,000, up 68.8% from HK$34,044,000 in the prior year[78]. - Basic earnings per share rose to HK9.60 cents, compared to HK5.28 cents in the previous year, reflecting a 81.7% increase[78]. - Total comprehensive income for the period attributable to the owners of the Company was HK$58,950,000, up 75.5% from HK$33,579,000 in the prior year[87]. Costs and Expenses - Gross profit for the same period decreased to approximately HK$90,789,000, a decline of approximately 18.7% from HK$111,618,000 in 2021[12]. - The decrease in gross profit was primarily due to increased costs of purchase for the six months ended March 31, 2022[12]. - Selling and distribution costs remained stable at approximately HK$23,535,000 for the six months ended March 31, 2022, compared to HK$22,323,000 in 2021[12]. - Administrative expenses decreased by approximately 25.7% to approximately HK$39,222,000 from HK$52,790,000 in the previous year[12]. - The employee benefits expense for the six months ended March 31, 2022, amounted to approximately HK$43,116,000, down from approximately HK$48,087,000 for the same period in 2021[30]. Financial Position - As of March 31, 2022, the Group had interest-bearing bank borrowings of approximately HK$30,000,000, down from approximately HK$37,798,000 as of September 30, 2021[26]. - The Group's gearing ratio as of March 31, 2022, was approximately 8.0%, compared to approximately 9.6% as of September 30, 2021[26]. - The current ratio of the Group as of March 31, 2022, was approximately 2.6, down from approximately 3.1 as of September 30, 2021[26]. - Current assets increased to HK$581,833,000, compared to HK$477,483,000 as of September 30, 2021, marking a 21.8% growth[90]. - Current liabilities rose to HK$220,885,000, up from HK$154,580,000, indicating a 42.7% increase[90]. - Net current assets improved to HK$360,948,000, compared to HK$322,903,000 as of September 30, 2021, reflecting an 11.8% increase[90]. - Total non-current liabilities decreased from HK$12,118,000 to HK$8,005,000, a reduction of approximately 34.7%[95]. - Net assets increased from HK$428,542,000 to HK$471,718,000, representing an increase of about 10.1%[95]. - Total equity rose from HK$428,542,000 to HK$471,718,000, marking an increase of approximately 10.1%[95]. - Cash and cash equivalents at the end of the period increased to HK$198,588,000 from HK$112,813,000, a growth of about 76.0%[100]. Investments and Dividends - An interim dividend of HK1.9 cents per ordinary share has been declared for the six months ended 31 March 2022, down from HK2.7 cents in the same period last year[36]. - The final dividend for the year ended 30 September 2021 was approved at HK2.3 cents per ordinary share, down from HK5.2 cents in the previous year, totaling HK$12,957,000[134]. - An interim dividend of HK1.9 cents per ordinary share was declared for the six months ended 31 March 2022, totaling approximately HK$10,704,000, compared to HK$15,210,000 for the same period in 2021[141]. Market and Operational Strategy - The increase in revenue was driven by contributions across all geographic regions for the six months ended March 31, 2022[12]. - The company aims to continue exploring market expansion opportunities and enhancing operational efficiency in the upcoming periods[12]. - Future product development and technological advancements are being prioritized to strengthen the company's market position[12]. - The Group plans to tighten control over operating costs in the short term due to uncertainties from the persistent epidemic effect[15]. - The Board expects stable sales growth in the medium to long term due to increasing global demand for footwear and stringent quality requirements for adhesives[19]. - The Group will continue to invest in its core business and consider developing its OEM business to broaden its revenue base[20]. Corporate Governance and Compliance - The Company complied with the Corporate Governance Code provisions for the six months ended 31 March 2022[37]. - The Board believes that having the same individual as chairman and CEO provides strong and consistent leadership for the Group[38]. - All Directors confirmed compliance with the Model Code for Securities Transactions throughout the reporting period[40]. Research and Development - The Group collaborates with international chemical corporations and technology experts to enhance its research and development capabilities and maintain a technological leading position in the industry[17]. Shareholding and Management - Mr. Ieong Un holds a long position of 342,500,000 shares (60.80%) through All Reach Investments Limited and an additional 78,818,769 shares (13.99%) as a beneficial owner[48]. - The total interests beneficially held by Mr. Ieong Un amount to 78,818,769 shares[60]. - Mrs. Chan Sut Kuan, as the spouse of Mr. Ieong Un, has an interest in 421,318,769 shares, which is about 74.79% of the total shares[57]. - Key management personnel remuneration increased to HK$13,019,000 for the six months ended 31 March 2022, up from HK$12,752,000 in the previous year, representing a growth of 2.1%[163]. - Directors' emoluments rose to HK$9,493,000 for the six months ended 31 March 2022, compared to HK$9,042,000 in the same period last year, reflecting an increase of 5.0%[165]. Assets and Liabilities - The Group's financial assets at fair value through other comprehensive income (FVTOCI) include listed equity securities valued at HK$3,752,000 and listed debt securities valued at HK$1,456,000, totaling HK$5,208,000 as of 31 March 2022[109]. - The ageing analysis of trade receivables shows that as of March 31, 2022, the total amount was HK$223,350,000, an increase from HK$162,717,000 as of September 30, 2021[148]. - Trade payables aged 0 to 90 days as of March 31, 2022, were HK$74,630,000, compared to HK$28,118,000 as of September 30, 2021[155]. - The Group did not have any significant contingent liabilities as of March 31, 2022[28]. - The Group's lease liabilities increased to approximately HK$7,535,000 as of March 31, 2022, from approximately HK$3,354,000 as of September 30, 2021[26]. Miscellaneous - The Group did not have any significant investments, material acquisitions, or disposals for the six months ended March 31, 2022[28]. - The company expresses gratitude to patrons, suppliers, business partners, and shareholders for their support during the period[66]. - The company operates under the community property regime according to Macau laws[58]. - The Group operates in a single segment focused on manufacturing and selling adhesive products for footwear manufacturers[119].
星谦发展(00640) - 2022 - 中期财报