Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 77,343,000, a decrease of 5.4% from HKD 81,571,000 in the same period of 2021[8] - Gross profit for the same period was HKD 22,380,000, down from HKD 23,566,000, reflecting a gross margin of 28.9%[8] - The company reported a loss before tax of HKD 5,824,000, an improvement from a loss of HKD 8,193,000 in the previous year[8] - Total comprehensive loss for the period was HKD 8,280,000, compared to HKD 8,331,000 in the prior year[8] - Basic and diluted loss per share was HKD 2.07, an improvement from HKD 3.05 in the same period last year[10] - The loss attributable to the period for the six months ended June 30, 2022, was HKD (6,760,000), compared to a loss of HKD (9,431,000) for the same period in 2021, showing a reduction in losses[39] - The net loss before tax was HKD 6,781,000, compared to a loss of HKD 9,975,000 in 2021[62] - Basic and diluted loss per share was HKD 0.0207, compared to HKD 0.0306 in 2021[62] Assets and Liabilities - Non-current assets decreased to HKD 33,429,000 from HKD 36,237,000 as of December 31, 2021[12] - Current assets increased to HKD 125,253,000 from HKD 120,808,000 as of December 31, 2021[12] - Total assets as of June 30, 2022, amounted to HKD 158,682,000, compared to HKD 157,045,000 as of December 31, 2021[41] - The total liabilities as of June 30, 2022, were HKD 50,938,000, an increase from HKD 38,835,000 as of December 31, 2021[41] - Total equity decreased to HKD 107,744,000 from HKD 118,210,000 as of December 31, 2021[14] Cash Flow - For the six months ended June 30, 2022, the net cash generated from operating activities was HKD 15,191,000, compared to a net cash used of HKD (1,633,000) in the same period of 2021[19] - The cash flow from investing activities was HKD 196,000 for the six months ended June 30, 2022, a significant decrease from HKD 44,416,000 in the same period of 2021[19] - The cash flow used in financing activities was HKD (3,516,000) for the six months ended June 30, 2022, compared to HKD (30,865,000) in the same period of 2021, indicating a reduction in financing outflows[19] - The cash and cash equivalents increased to HKD 71,734,000 from HKD 61,383,000 as of December 31, 2021[12] - The cash and cash equivalents increased by HKD 11,871,000 during the six months ended June 30, 2022, compared to an increase of HKD 11,918,000 in the same period of 2021[19] Revenue Breakdown - Revenue from toy products was HKD 75,709,000 for the six months ended June 30, 2022, down from HKD 80,527,000 in the same period of 2021, representing a decline of 6.8%[33] - Revenue from Hong Kong increased significantly to HKD 9,605,000, up 142.5% from HKD 3,971,000 in 2021[51] - Revenue from Europe rose to HKD 6,883,000, an increase of 92.3% compared to HKD 3,580,000 in 2021[51] - Revenue from the United States decreased to HKD 9,116,000, down 14.8% from HKD 10,698,000 in 2021[51] - Revenue from Asia (excluding Hong Kong) was HKD 51,677,000, a decline of 17.8% from HKD 62,908,000 in 2021[51] - Revenue from novelty and decorative items increased by approximately 57% to about HKD 1,634,000, driven by increased sales in the US and Europe[84] Operational Efficiency - The company is focusing on improving operational efficiency and exploring new market opportunities to enhance future performance[8] - Distribution costs decreased by approximately 27% to about HKD 804,000, due to strict cost control measures implemented by the company[87] - Administrative expenses decreased by approximately 5% to about HKD 29,039,000, mainly due to a reduction in employee costs[87] - Financial expenses decreased by approximately 29% to about HKD 382,000, attributed to a reduction in interest payable to subsidiary company directors[88] - The segment profit for toy products increased to approximately HKD 1,141,000, up from HKD 1,104,000 in the previous year, attributed to enhanced production cost control measures[83] Corporate Governance and Structure - The company did not declare an interim dividend for the six months ended June 30, 2022, consistent with 2021[61] - The company has adopted the corporate governance code as per the latest amendments in the listing rules[116] - The board consists of two executive directors and three independent non-executive directors[122] - The board is currently seeking a suitable candidate to assume the role of chairman[117] Employee and Shareholder Information - As of June 30, 2022, the company employed approximately 755 full-time employees, an increase from 690 employees as of December 31, 2021[98] - As of June 30, 2022, the total issued shares of the company were 326,923,607[113] - Mr. Zhai Jun holds 125,297,040 shares, representing 38.33% of the total issued shares[112] - Mr. Gao Xiaorui holds 119,297,041 shares, representing 36.49% of the total issued shares[113] - Mr. Hou Hanping holds 18,757,200 shares, representing 5.74% of the total issued shares[112] - Mr. Yan Guoliang holds 18,528,000 shares, representing 5.67% of the total issued shares[112] Strategic Decisions - The company decided not to proceed with the proposed acquisition of Sozak Oil and Gas JSC due to the lack of agreement on significant terms and the emergence of a third-party agreement[102] - The company will continue to seek quality acquisition opportunities in the oil and gas exploration and production sector, despite not advancing the proposed acquisition and strategic cooperation agreements[106] - The company has not entered into any financial instruments to hedge foreign currency risks as of June 30, 2022, and continues to monitor the trends of the Renminbi closely[99] Other Information - The company sold its wholly-owned subsidiary Perfect Skill Limited for approximately HKD 67.1 million, with major assets valued at HKD 30.47 million in leased land and buildings, and HKD 36.33 million in investment properties as of December 31, 2020[97] - As of June 30, 2022, there were no stock options granted, exercised, canceled, or lapsed under the stock option plan, with 32,692,360 shares available for issuance, representing about 10% of the issued shares[108]
PERFECTECH INTL(00765) - 2022 - 中期财报