Revenue and Profitability - Revenue from contracts with customers for the six months ended December 31, 2021, was HK$931,125,000, a decrease of 2.3% from HK$951,987,000 in 2020[10] - Gross profit for the same period increased to HK$160,623,000, up 6.3% from HK$150,875,000 in 2020[10] - Profit for the period was HK$38,380,000, representing a decline of 5.5% compared to HK$40,602,000 in 2020[10] - Basic and diluted earnings per share for profit attributable to equity holders were both HK$0.092, down from HK$0.1005 in the previous year[13] - Total comprehensive income for the period was HK$53,388,000, down from HK$84,347,000 in 2020, reflecting a decrease of 36.7%[17] Assets and Liabilities - Total assets as of December 31, 2021, amounted to HK$1,154,464,000, an increase from HK$1,102,156,000 as of June 30, 2021[21] - Current assets increased to HK$840,356,000 from HK$793,094,000, indicating a growth of 5.9%[21] - Total liabilities amounted to HK$503,697,000, an increase from HK$482,012,000, reflecting a rise of approximately 4.5%[30] - Total equity increased to HK$650,767,000 as of December 31, 2021, up from HK$620,144,000 as of June 30, 2021, representing a growth of approximately 4.1%[27] Cash Flow and Investments - For the six months ended December 31, 2021, cash generated from operations was HK$62,145,000, a decrease of 33% from HK$92,682,000 in 2020[44] - Net cash generated from operating activities was HK$50,123,000, down from HK$84,292,000 in the previous year, reflecting a decline of 40%[44] - The company incurred a net cash used in investing activities of HK$11,227,000, compared to HK$7,779,000 in the prior year[44] - Additions to non-current assets, excluding financial instruments and deferred income tax assets, totaled HK$10,163,000, indicating ongoing investment in growth[90] Dividends - The company paid a final dividend of HK$14,768,000 and special dividend of HK$7,997,000 during the period[34] - The Directors declared an interim dividend of HK1.0 cent per share, totaling HK$3,692,000 for the six months ended 31st December 2020[139] - A special dividend of HK1.0 cent per share was also declared, totaling HK$3,692,000 for the same period[139] Financial Risks and Management - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk, which should be read in conjunction with the annual financial statements as of June 30, 2021[63] - The Group's financial risk management information is limited in the interim report compared to the annual report[63] - Management's estimates and assumptions in preparing interim financial information may differ from actual results[61] Segment Performance - The Group's operating segments include Trading, Colorants, Engineering Plastic, and Others, with each segment managed by different business unit leaders[80] - Operating profit for the group was HK$52,445,000, with a notable increase in the Engineering segment contributing HK$23,650,000[90] - Revenue from external customers in Hong Kong was approximately HK$411,802,000, while revenue from other locations, mainly Mainland China, was about HK$519,323,000[112] Cost Management - The Group adjusted prices of certain products and optimized its product mix while strengthening cost control measures[196][199] - Operating costs surged notably year-on-year due to increased salary costs and partial production line shutdowns caused by the pandemic[197][199] - The Group faced high plastic material prices, which remained elevated throughout the second half of 2021[196][199] Employee and Management Compensation - Employee benefit expenses, including directors' emoluments, rose to HK$69,081,000, compared to HK$67,670,000 in 2020, reflecting a 2.1% increase[120] - Basic salaries, allowances, and other benefits for key management totaled HK$6,330,000 for the six months ended December 31, 2021, down 28.8% from HK$8,893,000 in 2020[179] Accounting Standards and Compliance - The Group has adopted amendments to several HKFRS standards, including HKFRS 3, HKFRS 16, and HKAS 39, which are effective for annual periods beginning on or after January 1, 2022[59] - The Group is evaluating the impact of new accounting standards but does not anticipate major effects on its consolidated financial statements[64]
毅兴行(01047) - 2022 - 中期财报