Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 27,440,000, a decrease of 18.5% compared to HKD 33,654,000 in 2021[5] - Gross profit for the same period was HKD 9,975,000, down 14.4% from HKD 11,678,000 in 2021[5] - Operating profit for the six months was HKD 3,642,000, a significant improvement from an operating loss of HKD 6,832,000 in the previous year[5] - The net loss for the period was HKD 10,432,000, reduced from HKD 18,514,000 in 2021, indicating a 43.5% improvement[5] - Total comprehensive loss for the period was HKD 1,601,000, compared to HKD 20,124,000 in the same period last year, reflecting a substantial decrease of 92.0%[5] - For the six months ended June 30, 2022, the company reported a revenue of HKD 27,440,000 from wastewater treatment, a decrease of 17.5% compared to HKD 33,392,000 in the same period of 2021[26] - The company recorded a net loss of HKD 10,432,000 for the six months ended June 30, 2022, an improvement from a net loss of HKD 18,514,000 in the same period of 2021, representing a 43.5% reduction in losses[29] - The company reported a pre-tax loss of HKD 10,299,000 for the six months ended June 30, 2022, compared to a loss of HKD 18,384,000 for the same period in 2021, indicating a 44.8% improvement in loss[35] - Loss attributable to owners of the company reduced to approximately HKD 10,299,000, down from HKD 18,384,000 in the same period last year[56] Assets and Liabilities - Non-current assets decreased to HKD 2,720,000 as of June 30, 2022, from HKD 3,498,000 at the end of 2021[10] - Current assets decreased to HKD 38,563,000 from HKD 47,243,000, indicating a decline of 18.4%[10] - Current liabilities were HKD 439,060,000, down from HKD 576,986,000, showing a reduction of 23.9%[10] - The total assets of the company as of June 30, 2022, were approximately HKD 41,283,000, down from HKD 50,741,000 as of December 31, 2021[60] - The company recorded a total of HKD 384,900,000 in trade and other payables as of June 30, 2022, a decrease of 2.3% from HKD 393,636,000 as of December 31, 2021[41] - The company’s trade payables decreased to HKD 35,275,000 as of June 30, 2022, from HKD 40,657,000 as of December 31, 2021, representing a decline of 13.2%[41] Cash Flow and Liquidity - The cash and cash equivalents at the end of June 30, 2022, decreased to HKD 947,000 from HKD 8,749,000 at the end of June 30, 2021, indicating a significant decline in liquidity[17] - The company generated a net cash inflow of HKD 498,000 from operating activities for the six months ended June 30, 2022, a decrease of 91.9% compared to HKD 6,121,000 in the same period of 2021[17] - The company’s financing activities resulted in a net cash outflow of HKD 650,000 for the six months ended June 30, 2022, compared to a net cash inflow of HKD 1,095,000 in the same period of 2021[17] Segment Performance - The health-related products and services segment reported a profit of HKD 9,213,000 for the six months ended June 30, 2022, compared to a loss of HKD 2,727,000 in the same period of 2021[26] - The company reported a segment loss of HKD 4,034,000 from wastewater treatment for the six months ended June 30, 2022, compared to a loss of HKD 2,657,000 in the same period of 2021[26] Shareholder Information - The company has a total of 1,000,000,000 shares authorized, with 219,018,000 shares issued and fully paid as of June 30, 2022[52] - Major shareholders include Jun Tu International Holdings Limited, holding 50,725,000 shares, which is 23.16% of the issued share capital[74] - As of June 30, 2022, there were no other individuals with interests in the company's shares, apart from those disclosed[75] Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules, except for the provision A.4.1 regarding the term of non-executive directors[79] - The board is responsible for maintaining adequate internal control systems to protect shareholder investments and company assets, with annual reviews supported by the audit committee[80] - The internal audit department was established in 2019 to manage and oversee internal control procedures, ensuring compliance and risk management[80] - The audit committee consists of three independent non-executive directors and has reviewed the accounting principles and practices adopted by the group[83] Future Outlook - The company plans to focus all resources on environmental protection business after selling its healthcare business subsidiary[57] - The company aims to strengthen its core areas and key projects in the second half of the year to seek new business opportunities[57] - The company faced significant challenges in the environmental protection industry due to the ongoing impact of the pandemic[57]
中国环保科技(00646) - 2022 - 中期财报