Financial Performance - For the six months ended December 31, 2022, the company reported a loss of HKD 11,019,000 compared to a profit of HKD 48,128,000 for the same period in 2021, representing a significant decline[13]. - Total comprehensive income for the period was HKD -19,156,000, down from HKD 60,889,000 in the previous year, indicating a substantial decrease in overall financial performance[13]. - The company reported a tax loss of HKD 5,555,000 for the period, compared to a profit before tax of HKD 64,252,000 in the previous year[13]. - The total comprehensive income attributable to owners of the company was HKD -10,912,000, compared to HKD 46,741,000 in the prior year, highlighting a significant drop in profitability[13]. - For the six months ended December 31, 2022, external customer revenue was HKD 194,552,000, with a reported loss of HKD 15,640,000 in the cable and wire segment[58]. - The total revenue for the six months ended December 31, 2021, was HKD 268,174,000, with a profit of HKD 83,680,000[60]. - The gross profit for the same period was HKD 7,250,000, down 75.7% from HKD 29,824,000 in the previous year[101]. - The company recorded a net loss attributable to shareholders of HKD 10,912,000 for the six months ended December 31, 2022, compared to a profit of HKD 46,741,000 in the same period of 2021[109]. - For the six months ended December 31, 2022, the company reported total revenue of approximately HKD 194,552,000, a decrease of 27.5% compared to HKD 268,174,000 in the same period last year[135]. Assets and Liabilities - The company's total assets as of December 31, 2022, were HKD 1,069,524,000, a decrease from HKD 1,088,680,000 as of June 30, 2022[15]. - The net equity attributable to the company's owners was HKD 1,070,242,000, down from HKD 1,089,342,000, reflecting a decline in shareholder value[15]. - Non-current liabilities totaled HKD 293,638,000 as of December 31, 2022, compared to HKD 306,610,000 as of June 30, 2022, indicating a reduction in long-term obligations[15]. - The total assets as of December 31, 2022, amounted to HKD 1,629,403 thousand, down from HKD 1,692,464 thousand as of June 30, 2022[89]. - The total liabilities decreased from HKD 603,784,000 to HKD 559,879,000, a reduction of approximately 7.3%[36]. - The total liabilities as of December 31, 2022, were HKD 465,749 thousand, compared to HKD 509,923 thousand as of June 30, 2022[87]. - Trade receivables amounted to approximately HKD 58,859,000 as of December 31, 2022, a decrease from HKD 74,017,000 as of June 30, 2022[124]. Cash Flow and Financing - For the six months ended December 31, 2022, the net cash generated from operating activities was HKD 57,986 thousand, compared to a net cash used of HKD 58,001 thousand in the previous year[80]. - The net cash generated from investing activities was HKD 20,435 thousand, a significant improvement from a net cash used of HKD 55,503 thousand in the prior year[80]. - The company's cash balance at the end of the period was HKD 79,285 thousand, an increase from HKD 67,467 thousand in the previous year[82]. - The group's cash and bank balances amounted to approximately HKD 79 million as of December 31, 2022, an increase from HKD 71 million as of June 30, 2022[151]. - The net current assets were approximately HKD 80 million as of December 31, 2022, compared to HKD 64 million as of June 30, 2022[151]. - The group's debt-to-equity ratio was 0.25 as of December 31, 2022, down from 0.31 as of June 30, 2022, with total borrowings of approximately HKD 270 million[151]. - The average effective annual interest rate for bank borrowings ranged from 5.8% to 7.6%[49]. - The group raised no new borrowings during the six months ended December 31, 2022, compared to HKD 183,869,000 in the same period last year[49]. Investment and Capital Expenditure - The capital expenditure contracted but not provided for in the consolidated financial statements for buildings was HKD 148,758,000 as of December 31, 2022[77]. - The company completed the sale of properties for a total consideration of HKD 52,500,000, with net proceeds of approximately HKD 51,700,000[43]. - The company has entered into preliminary sale agreements for properties, including a workshop for HKD 50 million and a parking space for HKD 2.5 million[170][165]. - No significant investments were made by the group during the review period, and there are no plans for major investments or capital assets as of the report date[173]. Business Segments and Operations - The company has three reportable segments: cable and wire manufacturing, copper rod trading, and investment properties, each requiring distinct business strategies[86]. - The wire and cable segment generated revenue of approximately HKD 109,912,000, down 35.2% from HKD 169,709,000 year-on-year, accounting for 56.5% of total revenue[136]. - The copper rod business reported revenue of approximately HKD 78,718,000, a decrease of 13.9% from HKD 91,419,000 year-on-year, representing 40.5% of total revenue[136]. - The Americas segment's revenue fell 38.7% to approximately HKD 14,442,000, while revenue from mainland China and Hong Kong decreased by 20.3% to approximately HKD 145,156,000[137]. - The company did not conduct any business activities in the mining sector since the acquisition, leading to the conclusion that it does not constitute a business segment[55]. - The company has suspended related projects in the stone industry due to current market conditions and is reassessing the project's development prospects[146]. Governance and Compliance - The company has adopted the principles of the Corporate Governance Code and complied with all code provisions, except for specific deviations noted[179]. - The reappointment of independent non-executive directors who have served over nine years was approved at the annual general meeting[180][182][183]. - The company has adopted a governance structure where the roles of Chairman and CEO are distinct, with Mr. Zhou serving as both Chairman and Managing Director, which the board believes is in the best interest of the group[185]. - The Audit Committee, composed of independent non-executive directors, has reviewed the unaudited interim results for the review period and agreed on the accounting treatment adopted[186]. - The company has confirmed compliance with the standard code of conduct for securities trading by all directors during the review period[188]. Employee and Shareholder Information - As of December 31, 2022, the group employed approximately 400 employees, maintaining the same number as of June 30, 2022[149]. - The company adopted a new share option plan on December 5, 2022, aimed at rewarding employees and service providers to retain talent[79]. - No share options were granted, exercised, or cancelled under the new share option scheme during the review period[163]. - The new share option scheme was approved at the annual general meeting held on December 5, 2022, and is effective for a period of 10 years[160][167]. - The interests of directors and their associates in the company's shares include 39,380,000 shares (1.66%) held by Director Zhou Zhihao[175]. - No other individuals, apart from directors and senior management, hold any disclosed interests in the company's shares as of December 31, 2022[176].
星凯控股(01166) - 2023 - 中期财报