Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 95,261,132, a decrease of 35% compared to HKD 146,826,508 in the same period of 2022[4] - Gross profit for the same period was HKD 9,376,788, down 67% from HKD 28,627,975 year-on-year[4] - The company reported a loss attributable to owners of HKD 24,143,853, compared to a profit of HKD 7,643,548 in the previous year[4] - Basic and diluted loss per share was HKD 9.04, compared to earnings of HKD 2.86 per share in the prior year[4] - Total comprehensive loss for the period was HKD 32,076,823, significantly higher than a loss of HKD 927,613 in the same period last year[5] - The company reported a loss before tax of HKD 26,615,011 for the six months ended June 30, 2023, compared to a profit before tax of HKD 9,420,240 in the same period of 2022[18] - The company reported a pre-tax loss of HKD 24,143,853 for the six months ended June 30, 2023, compared to a profit of HKD 7,643,548 for the same period in 2022[33] - The overall gross profit decreased by 67.2% to approximately HKD 9,400,000, resulting in a loss attributable to the company's owners of approximately HKD 24,100,000[47] Assets and Liabilities - Non-current assets decreased to HKD 194,816,009 from HKD 203,277,367 at the end of 2022[7] - Current assets decreased to HKD 214,598,633 from HKD 233,631,096 at the end of 2022, with inventory dropping from HKD 81,933,176 to HKD 60,133,671[7] - Current liabilities increased to HKD 80,618,996 from HKD 59,868,024 at the end of 2022, indicating a rise in financial obligations[7] - The total equity decreased to HKD 302,154,728 from HKD 350,251,839 at the end of 2022, reflecting a decline in retained earnings and reserves[8] - Non-current assets as of June 30, 2023, totaled HKD 190,937,035, down from HKD 201,318,417 as of December 31, 2022[25] Cash Flow - Net cash inflow from operating activities for the six months ended June 30, 2023, was HKD 20,733,745, a decrease of 20% compared to HKD 26,052,948 in the same period of 2022[12] - The company experienced a net cash increase of HKD 2,599,398 in cash and cash equivalents for the six months ended June 30, 2023, compared to an increase of HKD 21,267,951 in the same period of 2022[12] - The financing activities generated a net inflow of HKD 2,797,778 for the six months ended June 30, 2023, compared to a net outflow of HKD 4,033,602 in the same period of 2022[12] - As of June 30, 2023, the total cash and cash equivalents amounted to approximately HKD 113,400,000, reflecting a strong financial position[53] Revenue Sources - Major customers contributed significantly to revenue, with Customer A generating HKD 23,033,426 and Customer B generating HKD 11,968,110 in the first half of 2023, down from HKD 33,843,464 and HKD 23,547,301 respectively in 2022[22] - Revenue from the Asia region, including Japan, was HKD 50,720,938 for the six months ended June 30, 2023, a decrease of 33% from HKD 75,796,052 in the same period of 2022[23] - Revenue from product sales was HKD 95,261,132, down 35.1% from HKD 146,826,508 in the previous year[26] - For the six months ended June 30, 2023, the group's revenue was approximately HKD 95,300,000, a decrease of 35.1% compared to the same period last year[47] Employee and Operational Costs - Employee expenses decreased to HKD 39,721,238, down 19.1% from HKD 49,164,264 in the previous year[28] - The company incurred capital expenditures of HKD 1,036,912 for the six months ended June 30, 2023, compared to HKD 751,395 in the same period of 2022[18] Dividends and Shareholder Information - The company declared an interim dividend of HKD 5,340,096 for the period[10] - The company declared an interim dividend of HKD 0.02 per share, consistent with the previous year, totaling HKD 5,340,096[31] - The company’s major shareholder, Celaya (PTC) Limited, holds 97,242,000 shares, representing 36.42% of the issued share capital[65] - The founder, Mr. Lai Pei Wo, directly holds 35,998,000 shares and has a total interest of 133,240,000 shares, accounting for 49.90% of the company[60] Risk and Governance - The company experienced a significant concentration credit risk of 36% from one major customer as of June 30, 2023[38] - The company has established an audit committee to review and supervise the financial reporting process and internal controls[71] - The company has adhered to the corporate governance code as per the listing rules, with no significant deviations reported[68] - The company’s board structure has not separated the roles of Chairman and CEO, which is considered to facilitate quick decision-making[69] Currency and Market Position - The impact of exchange rate changes resulted in a net gain of HKD 341,597 for the six months ended June 30, 2023[12] - The company recorded a net foreign exchange loss of HKD 487,493, compared to a net gain of HKD 5,512,342 in the same period last year[28] - The group recorded unrealized fair value losses of approximately HKD 17,000,000 related to forward currency contracts due to RMB depreciation[50] - The fair value loss on forward currency contracts was HKD 17,013,574 for the six months ended June 30, 2023, compared to a loss of HKD 3,567,587 in the same period last year[37] Future Plans and Activities - The company aims to enhance production flexibility and efficiency while managing RMB exchange rate fluctuations through forward currency contracts[52] - The company has no plans for significant market expansion or mergers and acquisitions disclosed in the report[73] - The company did not engage in any fundraising activities during the period ending June 30, 2023[57] - The company has not purchased, redeemed, or sold any of its listed securities during the reporting period[67] - The company’s stock option plan, which provided incentives to employees, was terminated on May 22, 2022[58] Employee Count - As of June 30, 2023, the company had approximately 792 employees, with about 756 located in mainland China, 31 in Hong Kong, and 5 overseas[58]
坚宝国际(00675) - 2023 - 中期财报