Financial Performance - The group's revenue for the first half of 2022 increased by 40% to HKD 1,087 million, compared to HKD 777 million in the first half of 2021[3]. - The group's profit before tax rose to HKD 187 million, up from HKD 62 million in the same period last year[3]. - Net profit increased to HKD 157 million, compared to HKD 47 million in the first half of 2021[3]. - Revenue for the six months ended June 30, 2022, increased by 39.9% to approximately $61.9 million compared to $56.9 million in the same period of 2021[6]. - Operating profit reached $7.2 million, up from $4.0 million in the first half of 2021, driven by strong demand from US and UK customers[6]. - Gross margin improved from 25.2% in the previous year to 33.3% for the six months ended June 30, 2022, due to increased revenue and reduced fixed production cost ratios[6]. - The company's net profit attributable to shareholders for the six months ended June 30, 2022, was approximately HKD 140.3 million, more than tripling from HKD 41.3 million in the same period last year[8]. - The company reported a profit before tax of HKD 187,044,000 for the six months ended June 30, 2022, compared to HKD 61,665,000 in the same period of 2021, representing a significant increase of 202%[18]. - The company’s total equity increased to HKD 1,604,086,000 as of June 30, 2022, compared to HKD 1,350,388,000 in the previous year, indicating strong financial health[24]. Revenue Growth - The group's revenue from the Australian manufacturing segment grew by 6%, driven by the acquisition of Griffin Press and natural growth from McPherson Printing[3]. - APOL Group's sales revenue increased by 15% in the first six months, primarily driven by demand from publishers in the US and UK[3]. - The group's sales revenue in the Hong Kong market grew by 9%, supported by a recovery in the education sector[3]. - Revenue from the United States market reached HKD 589,427,000, up from HKD 348,396,000 in the prior year, representing a growth of about 69.2%[39]. - The Australian market also showed growth, with revenue increasing to HKD 263,275,000 from HKD 241,857,000, a rise of approximately 8.8%[39]. - Revenue from the printing segment was HKD 879,599,000, while the publishing segment contributed HKD 262,798,000, indicating strong performance across both divisions[36]. Cost and Expenses - Administrative expenses increased to approximately HKD 74.7 million from HKD 54.5 million in the previous year, largely due to the inclusion of Quarto's administrative costs[6]. - Sales and distribution expenses increased by approximately HKD 53.8 million, with the ratio of these expenses to sales rising from 12.9% in 2021 to 14.2% in 2022[6]. - Employee benefits expenses rose significantly to HKD 223,977,000 from HKD 167,015,000, marking an increase of approximately 34%[42]. - The total income tax expense for the period was HKD 29,898,000, up from HKD 14,171,000, which is an increase of approximately 111%[43]. Strategic Initiatives - The company is diversifying its business strategy in response to rising costs in China, including labor, paper, and transportation[3]. - The company is exploring innovative methods and strategic partnerships to mitigate supply chain risks and ensure printing capabilities outside of China[6]. - The merger of COS and Papercraft is expected to continue recording losses during the transition phase[3]. - The company anticipates weak demand for printing services in the second half of the year due to inflation impacting consumer spending[6]. Acquisitions and Investments - The company acquired subsidiaries and businesses, resulting in goodwill of HKD 325,734,000 as of June 30, 2022, reflecting strategic expansion efforts[48]. - The company acquired an additional 4.6% stake in Quarto for HKD 23,130,000, raising its ownership to 49.2%[51]. - The identifiable assets and liabilities of Quarto at the acquisition date had a total fair value of HKD 273,544,000, with goodwill amounting to HKD 137,387,000[66]. - The acquisition of the book printing business was completed on June 17, 2022, with an initial consideration of HKD 47,175,000[71]. Market Challenges - The number of books sold to US consumers decreased by 7% year-on-year, indicating potential challenges in consumer spending due to high inflation[4]. - The company has not adopted any new or revised Hong Kong Financial Reporting Standards that would have a significant impact on its financial performance for the current period[33]. - The company continues to evaluate the impact of new accounting standards but has not determined any significant financial effects on its operations[33]. Shareholder Information - The board proposed an interim dividend of HKD 0.03 per ordinary share for the six months ended June 30, 2022, consistent with the previous year[109]. - The company has 27,796,000 outstanding reward shares under the Star Printing Share Reward Plan as of June 30, 2022[102]. - There are 70,000,000 stock options available for issuance under the Star Printing Stock Option Plan, equivalent to approximately 9.1% of the company's issued shares as of June 30, 2022[103]. - The total equity held by major shareholder Qingtian Group Limited is 266,432,717 shares, which is 34.60% of the company's issued share capital[99].
狮子山集团(01127) - 2022 - 中期财报