Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 146,826,508, a decrease of 25.5% compared to HKD 197,105,135 for the same period in 2021[3] - Gross profit for the same period was HKD 28,627,975, down 47.9% from HKD 55,033,062 in the previous year[3] - The net profit attributable to the owners of the company was HKD 7,643,548, a decline of 74.0% from HKD 29,445,277 in the prior year[3] - Basic and diluted earnings per share decreased to HKD 2.86 from HKD 11.03, representing a drop of 74.0%[3] - The adjusted profit before tax for the precision components segment was HKD 10,595,008, while the total adjusted profit before tax was HKD 9,420,240[21] - Gross profit for the same period decreased by 48.0% to approximately HKD 28.6 million, resulting in a gross margin of 19.5%, down 8.4% from the previous year[59] - The net profit attributable to shareholders was approximately HKD 7.6 million, compared to HKD 29.4 million for the six months ended June 30, 2021[56] - Basic earnings per share for the period were HKD 0.0286, down from HKD 0.1103 in the same period last year[56] Cash Flow and Assets - Cash inflow from operating activities for the six months was HKD 26,052,948, an increase of 16.2% compared to HKD 22,329,698 in the previous year[13] - Total assets as of June 30, 2022, were HKD 496,982,121, down from HKD 531,049,654 as of December 31, 2021[10] - The company reported a net increase in cash and cash equivalents of HKD 21,267,951 for the period, compared to HKD 5,611,242 in the previous year[13] - Non-current assets as of June 30, 2022, totaled HKD 201,256,656, a decrease from HKD 211,454,734 as of December 31, 2021[28] - The total cash and bank balances as of June 30, 2022, amounted to HKD 115,367,716, an increase from HKD 94,352,977 as of December 31, 2021[47] Liabilities and Equity - Current liabilities decreased to HKD 99,209,382 from HKD 109,855,074, a reduction of 9.5%[10] - The financing costs for the six months ended June 30, 2022, were HKD 234,280, compared to HKD 184,575 for the same period in 2021[31] - The company reported a significant concentration credit risk of 40% from a single customer in the precision components category as of June 30, 2022, down from 59% as of December 31, 2021[45] - As of June 30, 2022, the total borrowings from banks and financial institutions amounted to approximately HKD 15 million, while cash and cash equivalents totaled approximately HKD 115.4 million[62] - The group maintained a negative debt ratio of -5.7% as of June 30, 2022, indicating a net cash position[62] Operational Highlights - Major customers contributing over 10% of revenue included Customer A with HKD 33,843,464 and Customer B with HKD 23,547,301 for the six months ended June 30, 2022[25] - Revenue from Hong Kong was HKD 4,093,205, while revenue from mainland China and other regions totaled HKD 142,733,303 for the six months ended June 30, 2022[26] - The group experienced a decline in sales orders from major customers due to global economic uncertainties, including the Ukraine war and chip shortages[58] - The group plans to launch multiple new products in the fourth quarter of 2022, as confirmed by major customers[61] - The group aims to reduce costs and improve efficiency in response to ongoing global inflation pressures and economic downturns[61] Employee and Governance - Employee expenses for the six months ended June 30, 2022, amounted to HKD 49,164,264, a slight decrease from HKD 51,163,091 for the same period in 2021[32] - The total number of employees as of June 30, 2022, was approximately 895, with the majority based in mainland China[67] - The company has complied with all corporate governance code provisions during the reporting period, except for the separation of roles between the chairman and CEO[79][80] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial statements for the six months ending June 30, 2022[82] Dividends and Shareholder Information - The total dividend declared for the period was HKD 16,020,288, which includes a special dividend of HKD 10,680,192 and an interim dividend of HKD 5,340,096, compared to HKD 10,680,192 for the same period in 2021[37] - The company plans to distribute a special dividend of HKD 0.04 per share and an interim dividend of HKD 0.02 per share on October 14, 2022[54] - As of June 30, 2022, Celaya (PTC) Limited holds 97,242,000 shares, representing 36.42% of the company's issued share capital[75] - Lai Yaozhen and Lin Lianzhu collectively hold 23,748,000 shares, accounting for 8.89% of the company's issued share capital[75] - The company did not grant any rights to directors or their family members to acquire shares or bonds during the reporting period[72] Other Financial Information - The company received a government subsidy of HKD 184,000 under the "Employment Support Scheme" during the six months ended June 30, 2022[29] - The capital expenditure for the six months ended June 30, 2022, was HKD 5,654,721, reflecting ongoing investments in operational capacity[21] - The company's tax expense for the six months ended June 30, 2022, was HKD 1,776,692, a decrease of 63.8% compared to HKD 4,900,841 for the same period in 2021[35] - The company recorded a realized loss of HKD 2,096,017 on forward currency contracts due to the depreciation of the RMB against the USD for the six months ended June 30, 2022[42] - The company has no unexercised share options as of June 30, 2022, following the termination of the share option scheme on May 22, 2022[50] - The company did not purchase, redeem, or sell any of its listed securities during the reporting period[78]
坚宝国际(00675) - 2022 - 中期财报