Financial Performance - Revenue from contracts with customers decreased by 31.5% to HK$637,858,000 compared to HK$931,125,000 in the previous year[5] - Gross profit fell by 55.2% to HK$71,996,000 from HK$160,623,000 year-on-year[5] - Operating loss for the period was HK$21,028,000, a significant decline from an operating profit of HK$52,445,000 in the prior year[5] - Loss attributable to equity holders of the Company was HK$34,092,000, compared to a profit of HK$33,979,000 in the same period last year[9] - Total comprehensive loss for the period amounted to HK$74,803,000, contrasting with a comprehensive income of HK$53,388,000 in the previous year[13] - The company reported a comprehensive loss of HK$74,803,000 for the six months ended December 31, 2022[25] - The company reported a fair value gain of financial assets at FVOCI of HK$188,000 for the period[30] - The company’s retained earnings increased to HK$447,511,000 as of December 31, 2022, from HK$428,300,000 at the beginning of the period[30] - The company incurred a net cash outflow of HK$104,189,000 in financing activities, compared to a net cash outflow of HK$1,847,000 in the previous year[33] - The company paid dividends totaling HK$16,724,000 to owners during the reporting period[25] Assets and Liabilities - Non-current assets decreased to HK$298,993,000 from HK$313,640,000, reflecting a decline of 4.7%[18] - Current assets dropped significantly to HK$696,796,000 from HK$914,018,000, a decrease of 23.8%[18] - Total liabilities decreased from HK$568,612,000 to HK$428,270,000, reflecting a reduction of approximately 24.7%[22] - Current liabilities decreased significantly from HK$553,266,000 to HK$413,790,000, a decline of around 25.2%[22] - Total equity decreased from HK$659,046,000 as of June 30, 2022, to HK$567,519,000 as of December 31, 2022, representing a decline of approximately 13.9%[19] - Retained earnings fell from HK$464,592,000 to HK$423,116,000, a decrease of about 8.9%[19] - The total assets less current liabilities decreased from HK$674,392,000 to HK$581,999,000, a reduction of about 13.7%[22] - The Group's total financial assets and liabilities classified as Level 3 financial instruments were all measured at fair value as of December 31, 2022[71] Cash Flow and Financing - Cash generated from operations for the six months ended December 31, 2022, was HK$83,382,000, an increase of 34% compared to HK$62,145,000 in the same period of 2021[33] - Net cash generated from operating activities was HK$73,196,000, up 46% from HK$50,123,000 year-on-year[33] - Cash and cash equivalents at December 31, 2022, decreased to HK$132,477,000 from HK$248,014,000 at the same date in 2021[33] - The Group's undrawn borrowing facilities amounted to HK$321,704,000 as of December 31, 2022, compared to HK$297,734,000 as of June 30, 2022, reflecting an increase of approximately 8%[155] - As of December 31, 2022, total borrowings amounted to HK$314,656,000, a decrease from HK$392,827,000 as of June 30, 2022, representing a reduction of approximately 19.9%[151] Segment Performance - The Group's operating segments include Trading, Colorants, Engineering Plastic, and Others, with performance assessed based on revenue from contracts with customers and operating profit[81] - Turnover from the colorant, pigment, and compounded plastic resin business fell to HK$156,226,000, down from HK$186,121,000, but profit before taxation increased to HK$7,134,000 from HK$904,000[182] - The engineering plastic business saw turnover decline to HK$64,269,000 from HK$142,736,000, with a loss before income tax of HK$1,719,000 compared to a profit of HK$23,290,000 in the previous year[183] - Turnover from the plastic trading business decreased by 30.7% to HK$417,363,000, with a loss before income tax of HK$31,528,000 compared to a profit of HK$26,486,000 in the previous year[184] Dividends and Share Capital - The company paid dividends totaling HK$7,384,000 during the period, compared to HK$14,768,000 in the previous year[33] - The Directors proposed a final dividend of HK2.0 cents per share, totaling HK$7,384,000 for the year ended June 30, 2022, which was paid during the six months ended December 31, 2022[119] - The company declared a special dividend of HK$3,692,000 and a final dividend of HK$7,384,000 for the respective periods ending June 30, 2021, and June 30, 2022[121] - The share capital remained unchanged at HK$36,920,000 as of both June 30, 2022, and December 31, 2022[19] Risk Management - The Group's activities expose it to various financial risks, including market risk, credit risk, and liquidity risk[54] - The Group's liquidity and funding risk management policies have not materially changed since June 30, 2022[62] - The Group closely monitors currency fluctuations and manages exchange risk through forward exchange contracts, although none were outstanding as of December 31, 2022[199] Management and Strategy - The management is cautiously optimistic about future developments due to stabilizing external factors and anticipated government policies to stimulate demand[188] - The Group continues to implement stringent cost control measures, including reducing administrative and manufacturing costs[190] - The Group has secured high value-added orders from new customers in high-end sanitary products, premium kitchenware, and smart appliances[189]
毅兴行(01047) - 2023 - 中期财报