Financial Performance - The company reported a loss attributable to equity shareholders of HKD 14,600,000 for the six months ended September 30, 2022, consistent with the loss of HKD 14,600,000 for the same period in 2021[10]. - For the six months ended September 30, 2022, total revenue was HKD 22,210,000, a slight decrease of 0.13% compared to HKD 22,239,000 for the same period in 2021[102]. - The company incurred an operating loss of HKD 21,705,000, compared to an operating loss of HKD 20,680,000 in the previous year, indicating a deterioration in operational performance[67]. - The net loss for the period was HKD 15,140,000, a slight improvement from a net loss of HKD 15,473,000 in the prior year[69]. - Total comprehensive loss for the period amounted to HKD 21,079,000, compared to HKD 15,428,000 in the same period last year, reflecting increased losses[69]. Revenue Breakdown - Revenue from the recycling paper business rose to approximately HKD 11,400,000, an increase of about HKD 1,400,000 or 13.7%, driven by a 23.1% increase in average selling prices[18]. - CMDS service revenue was HKD 7,900,000, a decrease of HKD 1,100,000 or 12.1%, impacted by the severe effects of the COVID-19 pandemic since February 2022[19]. - The joint venture for the treatment and recycling of waste electrical and electronic products contributed HKD 6,600,000 in revenue, an increase of HKD 600,000 or 10.0%[19]. - The Logistics Services segment reported revenue of HKD 2,279,000, a decrease of 3.5% from HKD 2,363,000 year-on-year[102]. - The Life Paper Products segment's revenue decreased to HKD 520,000, down 34.5% from HKD 795,000 in the previous year[102]. Operating Expenses - Operating expenses increased by HKD 4,100,000 or 17.9%, primarily due to a foreign exchange loss of HKD 6,000,000 from the depreciation of the Renminbi[10]. - Total sales, distribution, administrative, and other operating expenses amounted to HKD 35,900,000, a decrease of HKD 2,200,000 compared to the previous period due to ongoing cost control measures implemented by management[23]. - Employee costs for the six months ended September 30, 2022, were HKD 19,300,000, a decrease from HKD 21,600,000 in the same period last year, with approximately 102 employees employed[33]. Cash Flow and Liquidity - As of September 30, 2022, the group had unrestricted bank deposits and cash of approximately HKD 79,600,000, up from HKD 76,500,000 as of March 31, 2022, with a current ratio of 11.5[25]. - The company's cash and cash equivalents stood at HKD 79,602,000, up from HKD 76,462,000 as of March 31, 2022[73]. - The net cash generated from investing activities was HKD 8,398,000, a decrease from HKD 16,929,000 in the previous year[84]. - Operating cash outflow before changes in working capital was HKD 4,234,000, an improvement from HKD 7,957,000 in the prior year[86]. Future Outlook - The company anticipates continued growth in the waste electrical and electronic products business, which is expected to contribute more revenue[19]. - The hazardous waste treatment business is expected to improve due to enhanced operational efficiency and the commencement of new projects in the coming year[34]. - The company anticipates continued uncertainty in business operations due to strict COVID-19 control measures in mainland China, while optimistic about growth in Hong Kong as restrictions ease[34]. Corporate Governance and Compliance - The company has adopted the Corporate Governance Code and has complied with its provisions for the six months ending September 30, 2022[53]. - All directors confirmed compliance with the Securities Trading Code during the six months ending September 30, 2022[55]. - The company has implemented a self-regulatory code for employees regarding securities trading, with no violations reported during the six months ending September 30, 2022[56]. - The audit committee reviewed the interim financial report for the six months ended September 30, 2022, ensuring compliance with accounting principles and standards[63]. Shareholder Information - The board does not recommend any interim dividend for the six months ended September 30, 2022, consistent with the previous year[35]. - The issued share capital as of September 30, 2022, is 4,823,009,000 shares, amounting to HKD 482,301,000, unchanged from March 31, 2022[142]. - As of September 30, 2022, Cheng Yu Tung Family (Holdings) Limited and its affiliates collectively hold 2,742,514,028 shares, representing 56.86% of the company's issued share capital[48]. Other Financial Metrics - EBITDA improved slightly by HKD 400,000 to HKD 4,200,000 from HKD 4,600,000 in the previous period[24]. - The company's total equity decreased to HKD 798,233,000 from HKD 819,312,000, reflecting a decline in shareholder value[76]. - The company reported a pre-tax loss of HKD 14,553,000 for the six months ended September 30, 2022, compared to a loss of HKD 14,590,000 for the same period in 2021[122].
综合环保集团(00923) - 2023 - 中期财报