Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 80,759,000, an increase of 4.3% compared to HKD 77,536,000 for the same period in 2021[4] - Gross profit decreased to HKD 13,501,000, down 42.8% from HKD 23,652,000 year-on-year[4] - The company reported a loss for the period of HKD 997,000, a significant improvement from a loss of HKD 19,595,000 in the previous year[4] - The net loss attributable to the company’s owners for the period was HKD 103,000, compared to HKD 13,771,000 in the previous year[6] - The group recorded a net loss of approximately HKD 997,000 for the six months ended June 30, 2022, compared to a net loss of approximately HKD 19,595,000 in the same period of 2021, showing an improvement in financial performance[15] - The loss for the period decreased by approximately HKD 18,600,000 to about HKD 1,000,000, compared to a loss of HKD 19,600,000 for the same period in 2021[73] - The company reported a basic loss per share of approximately HKD 0.01, compared to HKD 0.63 for the same period in 2021[73] Assets and Liabilities - Total assets as of June 30, 2022, were HKD 136,576,000, down from HKD 151,265,000 as of December 31, 2021[8] - Current assets decreased to HKD 129,649,000 from HKD 144,579,000 at the end of 2021[8] - The company’s total liabilities amounted to HKD 1,007,596,000, an increase from HKD 988,953,000 at the end of the previous year[9] - The group’s current liabilities net amount was approximately HKD 991,186,000 as of June 30, 2022, compared to HKD 971,427,000 as of December 31, 2021, indicating a slight increase in liabilities[15] - The company reported a capital deficiency of approximately 829.1 million HKD as of June 30, 2022, compared to approximately 815.5 million HKD as of December 31, 2021[100] Cash Flow - The net cash used in operating activities for the six months ended June 30, 2022, was HKD (6,089,000), compared to HKD 6,222,000 in the prior year, indicating a significant shift in cash flow[13] - The total cash and cash equivalents at the end of the period was HKD 73,217,000, an increase from HKD 68,258,000 year-over-year, reflecting a growth of approximately 7.3%[13] - The company’s cash and cash equivalents were HKD 73,217,000, down from HKD 81,162,000 at the end of 2021[8] - The company’s cash and cash equivalents decreased by approximately 7.9 million HKD to about 73.2 million HKD as of June 30, 2022, primarily due to cash outflows from operating activities[101] Segment Performance - The segment performance showed a loss of HKD 3,159,000 for the total group, with the support services segment generating a profit of HKD 2,294,000, while the sugar and ethanol segments reported losses of HKD 4,684,000 and HKD 769,000 respectively[25] - The company operates in three main segments: support services, sugar business, and ethanol business, with performance metrics reported separately for each segment[23] - The operating profit for the support services segment was approximately 2.3 million HKD for the six months ended June 30, 2022, compared to approximately 400,000 HKD for the same period in 2021, mainly due to foreign exchange gains[93] - The ethanol business segment reported an operating loss of approximately 800,000 HKD for the six months ended June 30, 2022, compared to an operating profit of approximately 400,000 HKD for the same period in 2021, attributed to foreign exchange losses[95] Revenue Sources - Revenue from Jamaica was HKD 70,353,000 for the six months ended June 30, 2022, compared to HKD 64,737,000 in the same period of 2021, indicating a growth of approximately 8.5%[34] - The company recorded revenue of approximately 1,596,000,000 Jamaican dollars (about 80,800,000 HKD) for the six months ended June 30, 2022, representing a 7.5% increase compared to 1,485,400,000 Jamaican dollars (about 77,500,000 HKD) for the same period in 2021[81] - Raw sugar revenue increased by approximately 115,500,000 Jamaican dollars (about 4,000,000 HKD) due to an average selling price increase of about 18.1%, despite a decrease in raw sugar sales volume by approximately 6.9%[81] Inventory and Costs - The company incurred an inventory cost of 59,456 HKD for the six months ended June 30, 2022, compared to 53,884 HKD in the previous year[1] - The company’s inventory as of June 30, 2022, was valued at 69,454 HKD, compared to 55,815 HKD at the end of 2021[47] - The company made a provision for obsolete inventory amounting to 7,802 HKD during the six months ended June 30, 2022, whereas there was no provision in the same period of 2021[48] - The company experienced an increase in production costs by approximately 10.1%, primarily due to a rise in sugarcane procurement prices by about 13.9%[87] Corporate Governance - The company has complied with the corporate governance code as of June 30, 2022, with some deviations noted regarding insurance arrangements for directors[130] - The chairman and CEO roles are clearly separated, ensuring a balance of power within the board[132] - The independent non-executive directors are expected to actively participate in board meetings and contribute their expertise[133] Future Outlook - The sugar business segment is expected to face challenges due to the ongoing COVID-19 pandemic, with a potential decrease in global sugar production and tight supply conditions[116] - The construction of the ethanol plant will remain suspended in the second half of 2022 while the company determines an appropriate alternative business plan[118] - The group will closely monitor foreign exchange risks to take appropriate measures against any significant adverse impacts[105]
华联国际(00969) - 2022 - 中期财报