Financial Performance - Revenue for the six months ended September 30, 2022, was HK$743,576,000, a decrease of 26% from HK$1,003,298,000 in 2021[16] - Gross profit for the same period was HK$107,880,000, with a gross profit margin of 14.5%, compared to 13.4% in the previous year[16] - Operating profit decreased to HK$33,494,000 from HK$38,953,000, while profit attributable to owners of the Company was HK$26,665,000, down from HK$29,103,000[16] - Basic earnings per share were 9.36 HK cents, a decline from 10.22 HK cents in the prior year[16] - The Group's turnover decreased by 25.9% year-on-year to HK$743.6 million (1H 2021/22: HK$1,003.3 million) [23] - Gross profit was HK$107.9 million (1H 2021/22: HK$134.7 million), with a gross profit margin rising to 14.5% (1H 2021/22: 13.4%) [23] - Profit attributable to shareholders was HK$26.7 million (1H 2021/22: HK$29.1 million), resulting in a net profit margin of 3.6% (1H 2021/22: 2.9%) [23] - Profit for the period was HK$26,948,000, an 8.7% decline from HK$29,507,000 in the previous year[57] - Total comprehensive loss for the period was HK$32,753,000, compared to a loss of HK$3,498,000 in the previous year[177] Cash and Liquidity - Cash and cash equivalents increased to HK$158,039,000 from HK$141,657,000, while total bank borrowings decreased to HK$174,706,000 from HK$206,000,000[16] - The current ratio improved to 2.0 from 1.8, and the gearing ratio decreased to 22.2% from 25.4%[16] - The net gearing ratio improved to 2.1% from 7.9%, indicating a stronger financial position[16] - The Group's liquidity ratio improved to 1.95 times as of September 30, 2022, compared to 1.80 times as of March 31, 2022[76] - The Group's net debt position improved to HK$16.7 million as of September 30, 2022, down from HK$64.3 million as of March 31, 2022[76] - The Group's total cash flow from financing activities resulted in a net outflow of HK$49,314,000, compared to a smaller outflow of HK$15,338,000 in the previous year[189] Operational Highlights - The business environment was impacted by the COVID-19 pandemic, global inflation, and interest rate hikes, yet the Company managed to advance its business through a diversified product portfolio[20] - The Group launched a line of fresh, grain-free cat food under the "TeenyTiny" brand, achieving compliance with 83 international, U.S., and European standards [36] - The Group expects to see solid development in its core electronic products business, with new orders for audio products and Single-Board Computers (SBC) anticipated to contribute profits in the second half of the financial year [42] - The Group has entered into a partnership with a new customer in the professional audio equipment field, expanding its customer base and revenue stream [28] - The Group's diversified product portfolio and focus on unique product development have enabled steady growth in a complex market environment [27] - The Group remains cautiously optimistic about its business prospects in the second half of the financial year, despite uncertainties from geopolitical tensions and high inflation [37] Segment Performance - Sales from electronic products amounted to HK$640.8 million (1H 2021/22: HK$768.7 million), representing a year-on-year decrease of 16.6% and accounting for 86.2% of total sales [26] - The pet business recorded sales of HK$102.8 million (1H 2021/22: HK$234.6 million), representing a year-on-year decrease of 56.2% and accounting for 13.8% of total sales [33] - Revenue from the electronic products segment was approximately HK$640.8 million, a decrease of HK$127.9 million or 16.6% compared to HK$768.7 million in the previous period[67] - Revenue from the pet-related products segment recorded approximately HK$102.8 million, a decrease of HK$131.8 million or 56.2% compared to HK$234.6 million in the previous period[69] Expenses and Cost Management - Selling and distribution expenses decreased by HK$3.9 million or 12.3% to HK$28.0 million, reflecting the drop in revenue during the period[63] - General and administrative expenses decreased by HK$11.7 million or 16.3% to HK$60.2 million, mainly due to a reduction in headcount and bonuses[63] - Other income increased significantly by 404.6% to HK$4,420,000 from HK$876,000, while other gains – net rose by 91.2% to HK$13,892,000 from HK$7,267,000[57] Shareholder Information - An interim dividend of HK5.0 cents per share was declared for the six months ended 30 September 2022, down from HK6.0 cents per share in the same period of the previous year[109] - The interim dividend declared is HK$0.05 per share for the six months ended September 30, 2022, down from HK$0.06 per share in the same period last year[112] - The company has confirmed that at least 25% of its issued shares are held by the public as required under the Listing Rules[122] Corporate Governance - The Audit Committee has reviewed the unaudited condensed consolidated interim financial information for the six months ended September 30, 2022[124] - The company has confirmed compliance with the Corporate Governance Code for the period under review[118] - The company has adopted the Model Code for Securities Transactions by Directors, confirming compliance during the six months ended September 30, 2022[120]
信佳国际(00912) - 2023 - 中期财报