Revenue Performance - Revenue decreased by approximately HK$53.4 million or 18.9% from approximately HK$281.9 million for the period ended 30 June 2022 to approximately HK$228.5 million for the period ended 30 June 2023[7]. - Revenue from the EMS business decreased by 26.8% to HK$197.8 million (2022: HK$270.1 million), while revenue from the distribution of Communications Products decreased by 4.0% to HK$8.2 million (2022: HK$8.6 million)[9]. - Revenue contributions from major European countries totaled HK$60.7 million, accounting for 26.6% of total turnover, down from 36.2% in 2022[22][24]. - The US market contributed HK$56.3 million in revenue, representing 24.6% of total turnover, an increase from 16.7% in 2022[22][24]. - Revenue generated from European countries in the EMS and Distribution business segment decreased by approximately HK$41.4 million or 40.5% for the period ended 30 June 2023[7]. - Revenue from external customers for the six months ended June 30, 2023, was HK$228,457,000, a decrease of 18.99% compared to HK$281,893,000 for the same period in 2022[182]. Profitability and Financial Performance - The Group's gross profit increased by 11.3% to HK$54.7 million, with a gross profit margin of 23.9%, up from 17.4% in 2022[28][33]. - The profit attributable to owners of the Company was HK$4.8 million for the period ended 30 June 2023, a decrease from HK$13.5 million in 2022, with a net profit margin of -2.1% compared to -4.8% in the previous year[49][54]. - Loss for the period narrowed to HK$3,691,000 compared to a loss of HK$12,824,000 in the previous year, representing a 71.2% improvement[166]. - Basic loss per share improved to 2.98 HK cents from 14.16 HK cents in the prior period[164]. - The Group's consolidated loss before tax for the period was HK$1,352,000, significantly improved from a loss of HK$10,934,000 in the same period last year[185]. Expenses and Cost Management - Selling and distribution expenses were HK$14.9 million, accounting for approximately 6.5% of revenue in 2023, slightly up from 5.2% in 2022[38]. - Administrative expenses decreased to HK$51.1 million, representing 22.4% of revenue in 2023, down from 18.9% in 2022[39]. - Research and development expenditure decreased to approximately HK$6.6 million for the period ended 30 June 2023, down from HK$7.3 million in 2022, primarily due to reduced staff costs[40][45]. Cash Flow and Liquidity - The net cash used in operating activities for the first half of 2023 was HK$94,387,000, a significant decline from the net cash generated of HK$33,419,000 in the same period of 2022[174]. - The company generated net cash from investing activities amounting to HK$23,886,000 in the first half of 2023, compared to HK$160,000 in the same period of 2022[174]. - The net cash generated from financing activities was HK$80,634,000 for the six months ended June 30, 2023, a substantial increase from HK$9,688,000 in the prior year[174]. - As of June 30, 2023, cash and cash equivalents at the end of the period were HK$255,479,000, up from HK$189,996,000 at the end of June 2022, reflecting a 34.5% increase[174]. Investment and Capital Expenditure - The Group's capital expenditure amounted to approximately HK$0.8 million, primarily related to the acquisition of plant and machinery for EMS operations[69][73]. - Approximately HK$34.2 million was utilized for the expansion of the Group's product range under the EMS and Distribution Products Businesses, while HK$17.1 million for potential merger and acquisition opportunities remains unutilized as of the report date[96]. Share Capital and Corporate Governance - The total number of issued shares of the Company as of 30 June 2023 was 172,529,185, with a nominal value of HK$0.2 each, following a share consolidation effective on 30 March 2023[58][67]. - The Company completed a subscription of 517,600,000 new shares at a price of HK$0.1855 per share, totaling HK$96,014,800, which represents approximately 42.9% of the existing issued share capital[59][62]. - The Company has complied with the Corporate Governance Code throughout the six months ended 30 June 2023, except for the deviation from code provision C.2.1[104]. - The Board currently comprises seven members, including five executive Directors and two independent non-executive Directors, which is less than the required three independent non-executive Directors[109]. Future Outlook and Strategic Plans - The Group anticipates a positive outlook for the second half of 2023, focusing on steady cash flow from the EMS and Distribution of Communication Products segment[100]. - The Group plans to explore further potential money lending business opportunities while maintaining effective controls and procedures for loan approvals and credit monitoring[16]. - The Group's management is optimistic about the recovery of the global economy and aims to meet the expectations of investors in the market[100]. - The Group continues to focus on its core segments while exploring opportunities for market expansion and new product development[188].
中国储能科技发展(01143) - 2023 - 中期财报