Corporate Governance - The company appointed several new executive directors on February 1, 2023, including Ms. Ma Xiaoqiu as Chairlady and Mr. Tsang Chun Ho Anthony[3]. - The company reported significant changes in its board composition, with multiple resignations occurring on February 1, 2023, including the resignation of the Chairman and CEO, Mr. Li Haifeng[3]. - The company has undergone significant governance changes, with multiple independent non-executive directors appointed and resigned within a short timeframe[4][6]. - The company has maintained a strong corporate governance structure, ensuring effective oversight of management despite the vacancy in the CEO position since February 1, 2023[90]. - The company has complied with all provisions of the Corporate Governance Code except for the temporary deviation regarding the roles of chairman and CEO[88]. Financial Performance - For the six months ended 30 June 2023, the Group's revenue was HK$227.2 million, a decrease of 7.7% compared to HK$246.1 million in the same period of 2022[19]. - Gross profit for the same period was HK$31.1 million, reflecting a 9.6% decline from HK$34.4 million in 2022[19]. - The loss attributable to equity holders of the Company was HK$4.5 million, compared to a profit of HK$3.9 million in 2022, resulting in a basic and diluted loss per share of HK$0.52 cents[19]. - The Group reported a loss before tax of HK$4,518,000 for the six months ended June 30, 2023, compared to a profit before tax of HK$3,883,000 for the same period in 2022[132]. - Total comprehensive income attributable to equity holders for the period was a loss of HK$374,000, compared to a profit of HK$3,813,000 in 2022[94]. Revenue Breakdown - The garment manufacturing and trading segment generated revenue of HK$189.2 million, contributing 83.3% of total segment revenue, down from 85.8% in 2022[24]. - Revenue from external customers for the six months ended June 30, 2023, was HK$227,218,000, a decrease of 7.7% compared to HK$246,094,000 in 2022[137]. - Revenue from the United States decreased to HK$113,715,000 in 2023 from HK$164,411,000 in 2022, representing a decline of 30.8%[137]. - Revenue from Europe increased significantly to HK$75,459,000 in 2023, up 60.3% from HK$47,040,000 in 2022[137]. Expenses and Costs - Administrative and other operating expenses increased by 5.9% to HK$28.8 million, primarily due to higher depreciation expenses[30]. - Selling and distribution expenses as a percentage of garment manufacturing and trading revenue decreased to 1.6%, down from 2.1% in 2022, due to improved logistical efficiency[31]. - Finance expenses surged by 129.4% to HK$3.9 million, primarily due to increased interest expenses from rate hikes[32]. - Other income and gains decreased to HK$0.2 million from HK$3.1 million in 2022, mainly due to compensation from customers for cancelled orders[33]. Cash Flow and Liquidity - As of June 30, 2023, the Group's cash and cash equivalents increased to HK$132.0 million from HK$95.7 million as of December 31, 2022, representing a 38% increase[39]. - The Group's working capital, represented by net current assets, rose to HK$135.7 million from HK$85.3 million, marking a 59% increase[39]. - The current ratio improved to 2.3 as of June 30, 2023, compared to 1.8 as of December 31, 2022[39]. - Net cash used in operating activities increased to HK$12,774,000 in 2023 from HK$3,028,000 in 2022, reflecting a worsening cash flow situation[98]. - Cash and bank balances increased to HK$132,049,000 as of June 30, 2023, from HK$95,686,000 at the end of 2022, representing a growth of 38.0%[95]. Shareholder Information - The Group will not declare an interim dividend for the six months ended June 30, 2023, compared to HK$0.2 cents per ordinary share in 2022[65]. - As of June 30, 2023, MARS Worldwide Holdings Limited, wholly owned by Ms. Ma Xiaoqiu, holds 411,293,396 shares, representing approximately 45.71% of the issued share capital[77]. - The company did not recommend an interim dividend for the six months ended June 30, 2023, compared to HK$0.2 cents per ordinary share in 2022[163]. Production and Operations - Products manufactured in Southeast Asia accounted for 77.0% of total production, up from 59.5% in 2022, while the Heshan factory contributed 23.0%[25]. - The Group plans to allocate more production to Cambodia and Indonesia subcontractors to align with industry trends and improve productivity[62]. - The company has invested in advanced manufacturing machinery in Cambodia to improve productivity, which may lead to a reduction in the scale of its production facilities in Heshan[66]. Market Conditions - The apparel industry has shown signs of slowing down since the end of 2022, with rising inflation and weak consumer sentiment leading to a decline in sales in the US and Europe[66]. - The management is considering ceasing the inactive securities investment business to reallocate resources to other potential opportunities[63]. Other Information - The company’s website is www.carrywealth.com, providing a platform for investor relations and information dissemination[15]. - The financial statements have been prepared in accordance with Hong Kong Accounting Standards and have not been audited[101]. - The Group's reportable segments include garment manufacturing and trading, and securities investment, with no unsatisfied performance obligations as of June 30, 2023[127].
恒富控股(00643) - 2023 - 中期财报