Financial Performance - The company reported revenue of HKD 888,738,000 for the six months ended October 31, 2022, a decrease of 8.5% compared to HKD 971,637,000 in the same period of 2021[7]. - Gross profit for the period was HKD 325,294,000, down from HKD 336,918,000, reflecting a gross margin of approximately 36.6%[7]. - Operating profit increased to HKD 45,700,000, representing a 49.1% increase from HKD 30,658,000 in the previous year[7]. - Net profit attributable to equity holders was HKD 33,794,000, up 79.9% from HKD 18,798,000 year-on-year[7]. - Basic and diluted earnings per share rose to HKD 5.07, compared to HKD 2.82 in the prior year, marking an increase of 79.4%[7]. - The total comprehensive income for the period was HKD 15,698,000, compared to HKD 21,932,000 in the previous year, showing a decline of 28.5%[13]. - Profit attributable to equity holders for the same period was HKD 33,794,000, representing a 79.8% increase from HKD 18,798,000 in the previous year; excluding government subsidies, profit decreased by 20.5%[38]. Assets and Liabilities - Total assets as of October 31, 2022, amounted to HKD 936,592,000, an increase from HKD 919,516,000 as of April 30, 2022[12]. - Total liabilities rose to HKD 427,903,000, compared to HKD 419,863,000, marking a 1.0% increase[24]. - The total equity increased to HKD 508,689,000 from HKD 499,653,000, reflecting a solid financial position[12]. - The company’s total equity as of October 31, 2022, was HKD 508,689,000, an increase from HKD 484,304,000 at the same time last year, representing a growth of 5.0%[13]. Cash Flow and Liquidity - The company’s cash and cash equivalents stood at HKD 87,184,000, up from HKD 78,731,000, indicating improved liquidity[12]. - Cash generated from operating activities was HKD 129,818,000, up from HKD 115,670,000 in the previous year, indicating a growth of 12.2%[15]. - The net cash generated from operating activities after tax payments was HKD 107,912,000, slightly down from HKD 115,665,000 in 2021, reflecting a decrease of 6.1%[15]. - The group’s net cash inflow for the six months ended October 31, 2022, was HKD 9,432,000, compared to HKD 3,543,000 in the previous year[52]. - The operating cash inflow was HKD 107,912,000, down 6.7% from HKD 115,665,000 year-on-year[54]. - The group’s current ratio improved to 1.02 from 0.98, indicating enhanced liquidity[54]. Business Segments - Retail business revenue decreased to HKD 851,063,000, down 8.1% from HKD 926,094,000 in the same period last year[23]. - Operating profit for the retail segment increased to HKD 51,814,000, up 18.5% from HKD 43,810,000 in the previous year[23]. - The electronic components manufacturing segment reported revenue of HKD 37,123,000, a decrease of 17.9% compared to HKD 45,197,000 in the previous year[45]. - The segment's gross profit was HKD 4,586,000, down 9.2% from HKD 5,052,000, with a gross margin increase to 12.4% from 11.2%[45]. Government Support and Subsidies - The group received government subsidies related to COVID-19 amounting to HKD 18,842,000, which was not present in the previous year[27]. - The group received approximately HKD 18,842,000 in support funds from the anti-epidemic fund and the "Employment Support Scheme" during the review period[43]. Operational Strategy - The company plans to continue focusing on market expansion and new product development to drive future growth[6]. - The company plans to enhance sourcing efforts by sending procurement teams to participate in global food and consumer goods exhibitions to find quality products[59]. - The company is focused on maintaining its current scale and improving operational efficiency and service levels to enhance brand value[59]. - The company has no immediate plans for business expansion or large-scale investments due to the uncertain market environment[59]. - Financial resources will be accumulated to seize future opportunities as they arise[59]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has complied with its applicable provisions, except for the deviation regarding the roles of the Chairman and CEO being held by the same person since 2018[67]. - The Audit Committee consists of three independent non-executive directors and has held regular meetings, reviewing accounting principles and internal controls for the six months ending October 31, 2022[68]. - The Remuneration Committee is responsible for establishing a formal and transparent procedure for determining the remuneration policy for all directors and senior management, with four members including one executive director[69]. - The Nomination Committee has been established to review the board's structure and diversity, and it currently has four members, including one executive director[70]. - The company has adopted the standard code of conduct for securities transactions by directors and confirmed compliance for the six months ending October 31, 2022[71]. Shareholding Structure - As of October 31, 2022, the company’s major shareholder, Ka Yan China Development (Holding) Company Limited, holds 442,295,660 shares, representing 66.39% of the issued share capital[63]. - The total equity held by major shareholder Lo Ching Yi, including family and trust interests, amounts to 472,250,848 shares, or 70.89% of the issued share capital[63]. - The company’s board members and senior executives hold a total of 4,194,611 shares, representing 0.63% of the issued share capital[60]. - No shares were repurchased or sold by the company or its subsidiaries in the six months ending October 31, 2022[66].
CEC INT'L HOLD(00759) - 2023 - 中期财报