Financial Performance - For the six months ended June 30, 2022, the company reported a consolidated loss attributable to shareholders of approximately HKD 18,943,000, an increase of HKD 14,948,000 or 374.2% compared to the same period last year[14]. - The group's consolidated revenue for the period was approximately HKD 42,989,000, a decrease of about HKD 69,409,000 or 61.8% compared to the same period last year[19]. - The company reported a loss of HKD 18,943,000 for the six months ended June 30, 2022, compared to a loss of HKD 3,995,000 for the same period in 2021, indicating a significant increase in losses[38]. - Total comprehensive loss for the period amounted to HKD 24,829,000, compared to HKD 1,680,000 in the previous year, reflecting a deterioration in overall financial performance[38]. - The group reported a pre-tax loss of HKD 18,943,000 for the period, compared to a pre-tax loss of HKD 3,888,000 in the same period last year[34]. Production and Sales - The total production of cowhide leather was 1,699,844 square feet, a decrease of 74.8% from 6,748,817 square feet in the same period last year[18]. - The total sales volume of cowhide leather was 2,756,011 square feet, down 62.3% from 7,315,574 square feet in the same period last year[18]. - The production of grey leather was 622 tons, a decrease of 78.8% from 2,936 tons in the same period last year[18]. - The sales volume of grey leather was 694 tons, down 76.4% from 2,936 tons in the same period last year[18]. - Sales of cowhide leather amounted to approximately HKD 37,823,000, down by about HKD 62,674,000 or 62.4% year-on-year[19]. Assets and Liabilities - As of June 30, 2022, the company's unaudited net asset value was approximately HKD 149,707,000, a decrease of about HKD 24,829,000 from HKD 174,536,000 as of December 31, 2021[14]. - Non-current assets decreased to HKD 54,953,000 as of June 30, 2022, down from HKD 58,056,000 at the end of 2021, showing a decline of approximately 3.8%[42]. - Current assets also declined to HKD 153,122,000 from HKD 170,228,000, representing a decrease of about 10.1%[42]. - Current liabilities increased to HKD 54,726,000 from HKD 50,028,000, marking an increase of about 9.4%[42]. - The group's interest-bearing bank loans amounted to approximately HKD 8,087,000 as of June 30, 2022, compared to zero on December 31, 2021[24]. Cash Flow and Investments - The company experienced a cash outflow from operating activities of HKD 8,612,000 for the six months ended June 30, 2022, compared to an outflow of HKD 34,562,000 in the previous year, showing an improvement in cash flow management[102]. - Cash used in investing activities was HKD 3,291,000, compared to HKD 2,954,000 in the same period last year, indicating increased investment expenditures[102]. - The cash and cash equivalents balance as of June 30, 2022, was approximately HKD 6,356,000, a decrease of about HKD 12,586,000 or 66.4% from December 31, 2021[23]. Operational Challenges - The company faced significant operational disruptions due to a 48-day lockdown in Suining County, Jiangsu Province, impacting the supply chain and order fulfillment[16]. - Environmental regulations have become stricter, prompting the company to enhance its environmental management and monitoring systems[18]. - The company is focusing on optimizing management and restoring the supply chain to ensure stable operations amid the challenges faced[16]. Corporate Governance - The company adhered to the Corporate Governance Code as per the Listing Rules Appendix 14 during the six months ended June 30, 2022[143]. - All directors confirmed compliance with the standard code of conduct for securities transactions during the six months ended June 30, 2022[144]. - The audit committee reviewed the unaudited interim results for the six months ended June 30, 2022[145]. Shareholder Information - Major shareholders include Guangdong Nanyue Group Limited, holding 52.00% of the shares, and Guangdong Yuehai Holdings Group Limited, holding 19.34%[137]. - The weighted average number of ordinary shares issued remained unchanged at 538,019,000 for both periods under review[122].
南粤控股(01058) - 2022 - 中期财报