Financial Performance - For the six months ended 31 March 2023, the company reported a total revenue of HK$358,656,000, compared to HK$377,603,000 for the same period in 2022, indicating a decrease of approximately 5.5%[2] - Revenue for the six months ended March 31, 2023, was HK$358,656,000, a decrease of 5.5% compared to HK$377,603,000 in 2022[5] - Gross profit increased by approximately 16.7%, reaching HK$105,965,000 for the six months ended 31 March 2023, up from HK$90,789,000 in 2022[63] - Profit before tax for the period was HK$34,032,000, down 40.7% from HK$57,480,000 in 2022[5] - Profit attributable to owners for the six months ended March 31, 2023, was approximately HK$27,539,000, a decrease of approximately 49.1% compared to HK$54,083,000 for the same period in 2022[88] - Basic earnings per share decreased to HK4.89 cents from HK9.60 cents, reflecting a 49.1% drop[5] - The comprehensive income for the period ending March 31, 2023, was HK$30,493,000, compared to HK$58,950,000 for the previous period[199] - Other comprehensive income for the period, net of tax, was HK$2,954,000, down from HK$4,867,000 year-on-year[173] - The total comprehensive income attributable to owners of the company decreased significantly, reflecting the overall decline in profitability[173] Dividends and Shareholder Returns - The interim dividend declared for the six months ended 31 March 2023 is HK$0.024 per ordinary share, totaling approximately HK$13,520,000, an increase from HK$10,704,000 for the same period in 2022[10] - The Board declared an interim dividend of HK2.4 cents per ordinary share for the six months ended March 31, 2023, compared to HK1.9 cents for the same period in 2022[1] - Dividends declared for the period were HK$24,224,000, which is a significant increase from HK$15,774,000 in the prior period[199] Assets and Liabilities - The total non-current assets in the geographical region were reported at HK$358,656,000, down from HK$377,603,000[3] - Current assets totaled 574,594 million, compared to 558,244 million, indicating an increase of about 3%[33] - Total current liabilities rose to 217,538 million from 201,215 million, representing an increase of approximately 8%[33] - The Group's inventories decreased significantly from 128,239 million to 85,420 million, a reduction of about 33%[33] - Trade, bills, and other receivables decreased from 278,684 million to 183,743 million, a decline of approximately 34%[33] - The Group's cash and bank balances increased to 279,259 million, up from 135,238 million, showing a growth of about 106%[33] - The Group's right-of-use assets saw a significant decrease from 41,149 million to 14,181 million, a reduction of about 66%[33] - The Group's investments in associates decreased from 6,740 million to 6,126 million, a decline of approximately 9%[33] Expenses and Costs - Selling and distribution costs rose by approximately 11.4%, amounting to HK$26,225,000 for the six months ended 31 March 2023, compared to HK$23,535,000 in 2022[63] - Administrative expenses increased by approximately 24.1%, totaling HK$49,936,000 for the six months ended 31 March 2023, up from HK$40,252,000 in 2022[63] - The company incurred finance costs of HK$1,332,000, significantly higher than HK$366,000 in the previous year[5] - The increase in gross profit was primarily due to a decrease in costs of purchase for the six months ended 31 March 2023[63] Employee and Management Information - As of March 31, 2023, the Group employed a total of 412 employees, an increase from 396 employees as of September 30, 2022[75] - For the six months ended March 31, 2023, employee benefits expense amounted to approximately HK$48,613,000, compared to approximately HK$43,116,000 for the same period in 2022, reflecting an increase of about 11.6%[75] - The remuneration policy for Directors is linked to the financial results of the Group and individual performance, ensuring competitiveness within the industry[75] Corporate Governance and Compliance - The Company complied with the Corporate Governance Code provisions for the six months ended March 31, 2023[1] - The Company confirmed compliance with the Model Code for Securities Transactions by Directors throughout the reporting period[1] - The audit committee has reviewed the condensed consolidated financial statements for the six months ended March 31, 2023[113] - RSM Hong Kong has conducted a review of the financial statements in accordance with the relevant standards[113] Future Outlook and Strategy - The Group expects stable growth in sales in the medium to long term due to increasing global demand for footwear and environmental adhesive products[68] - The Group will continue to monitor working capital management closely and adjust business strategies as necessary in response to market changes[72] - The Board finds it challenging to predict sales performance for 2023 due to uncertainties from high inflation and decreased purchasing power[90] - The Group plans to invest in and develop its OEM business to broaden its revenue base[91] - The company plans to adopt a cautious approach in 2023 to ensure sustainable development and will closely monitor working capital management[119] - The company will also keep a vigilant watch on the latest developments in the footwear manufacturing industry and inflation trends[119] Shareholding and Interests - As of March 31, 2023, Mr. Ieong Un holds a total of 342,500,000 shares in All Reach, representing approximately 60.80% of the shareholding[104] - Mr. Ieong Un also beneficially owns 78,818,769 shares, which accounts for about 13.99% of the total shares[104] - The total interests beneficially held by Mr. Ieong Un, including those held by his spouse, amount to 421,318,769 shares[110] - All Reach Investments Limited, wholly owned by Mr. Ieong Un, holds 342,500,000 shares, representing approximately 60.80% of the total shareholding[131] - Ms. Chan Sut Kuan, spouse of Mr. Ieong Un, holds 421,318,769 shares, which accounts for approximately 74.79% of the total shareholding[131] Cash Flow and Financial Position - Net cash generated from operating activities was HK$142,658,000, compared to a cash outflow of HK$8,147,000 in the previous period[158] - Cash and cash equivalents at the end of the period were HK$274,733,000, up from HK$198,588,000 in the previous year[158] - The company reported a net cash used in investing activities of HK$18,466,000, compared to a net cash generated of HK$85,439,000 in the previous period[158] - The company reported a cash flow change of HK$6,269,000 for the period, indicating a positive cash flow trend[200] Financial Reporting Standards - The Group has adopted new and revised Hong Kong Financial Reporting Standards, which did not have a material effect on the consolidated financial statements[53] - The interim financial information is prepared in accordance with Hong Kong Accounting Standard 34[144] - The financial statements were prepared in accordance with Hong Kong Accounting Standard 34, ensuring compliance with local regulations[183] - The financial review was conducted in accordance with Hong Kong Standard on Review Engagements 2410, indicating no significant issues were found[143] Other Information - The company continues to engage in the manufacturing and selling of adhesives and related products for the footwear industry, maintaining its core business focus[181] - There were no significant investments, material acquisitions, or disposals during the six months ended 31 March 2023[74] - No other material events occurred after the reporting period up to the date of this interim report[75] - No listed securities were purchased, sold, or redeemed by the Company or its subsidiaries during the six months ended March 31, 2023[1] - No other individuals, apart from the directors, have registered interests or short positions in the shares as of March 31, 2023[111]
星谦发展(00640) - 2023 - 中期财报