Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 74,056,000, a decrease of 4.0% compared to HKD 77,343,000 for the same period in 2022[7] - Gross profit for the same period was HKD 21,555,000, down 3.7% from HKD 22,380,000 in 2022[7] - The company reported a loss before tax of HKD 10,774,000, compared to a loss of HKD 5,824,000 in the previous year, indicating a significant increase in losses[7] - Basic and diluted loss per share for the period was HKD 3.13, compared to HKD 2.07 in the same period last year[9] - The company reported a net loss of HKD (10,780) thousand for the six months ended June 30, 2023, compared to a net loss of HKD (6,760) thousand for the same period in 2022, indicating increased losses[32] - The loss attributable to the company's owners for the same period was approximately HKD 10,246,000, compared to a loss of HKD 6,781,000 in 2022[54] - The group recorded a core business loss of HKD 7,800,000 for the period, compared to a loss of HKD 2,075,000 in 2022[54] Assets and Liabilities - Total assets decreased to HKD 104,439,000 as of June 30, 2023, from HKD 118,649,000 at the end of 2022, reflecting a decline of 11.97%[12] - Current assets dropped to HKD 99,755,000 from HKD 127,043,000, a decrease of 21.5%[12] - The company's total equity as of June 30, 2023, was HKD 92,552,000, down from HKD 106,539,000 at the end of 2022, a decrease of 13.1%[13] - The total liabilities as of June 30, 2023, were HKD 34,312 thousand, compared to HKD 51,099 thousand as of June 30, 2022, indicating a reduction in liabilities[35] - Cash and cash equivalents decreased to HKD 45,442 thousand as of June 30, 2023, from HKD 71,734 thousand as of June 30, 2022, marking a decline of approximately 37%[18] Revenue Breakdown - Revenue from toy products for the six months ended June 30, 2023, was HKD 72,524 thousand, down from HKD 75,709 thousand in the same period of 2022, a decrease of about 4.5%[29] - Revenue from novelty and decorative items decreased by approximately 6% to about HKD 1,532,000[56] - Revenue from toy products decreased by approximately 4% to about HKD 72,524,000, accounting for about 98% of total revenue[55] Expenses - Distribution costs increased by approximately 56% year-on-year to about HKD 1,253,000, attributed to rising inspection costs[58] - Administrative expenses rose by approximately 17% year-on-year to about HKD 33,825,000, mainly due to an increase in average full-time employees[58] - Financial expenses decreased by approximately 6% year-on-year to about HKD 359,000, due to reduced interest on lease liabilities[59] Cash Flow - The net cash used in operating activities for the six months ended June 30, 2023, was HKD (18,245) thousand, compared to HKD 15,191 thousand for the same period in 2022, indicating a significant decline[18] - The company’s cash flow from investing activities was HKD (215) thousand for the six months ended June 30, 2023, compared to HKD 196 thousand in the same period of 2022, indicating a negative shift in investment cash flow[18] Corporate Governance - The company has adopted the corporate governance code as per the latest amendments to the listing rules, ensuring compliance with the relevant guidelines[77] - The roles of Chairman and CEO are currently shared among the board and the company secretary, following the resignation of the previous Chairman in December 2020 and the CEO in November 2022[80] - The audit committee consists of three independent non-executive directors, with Mr. Liu Shuren serving as the chairman, and has reviewed the unaudited interim results for the six months ending June 30, 2023[83] - The company is in the process of identifying suitable candidates for the roles of Chairman and CEO to enhance governance and operational effectiveness[80] - The company confirmed compliance with the standards for directors' securities transactions during the six months ending June 30, 2023[81] Shareholder Information - As of June 30, 2023, the company had a total of 326,923,607 issued shares, with major shareholders holding significant stakes: Mr. Zhai Jun holds 125,297,040 shares (38.33%) and Mr. Gao Xiaorui holds 84,717,041 shares (25.91%) [74] - Major shareholders include Star Fly Limited, which is wholly owned by Mr. Zhai Jun, and Fresh Choice Holdings Limited, which is primarily owned by Mr. Gao Xiaorui [79] Strategic Outlook - The company is exploring more quality merger and acquisition opportunities in the oil, gas, and sustainable energy infrastructure sectors[70] - The board is cautiously evaluating new investment opportunities to create long-term returns for shareholders amid a challenging operating environment[70]
PERFECTECH INTL(00765) - 2023 - 中期财报