Financial Performance - The company's revenue increased by approximately 65% to about $96.7 million for the six months ended June 30, 2022, compared to approximately $58.4 million in the same period of 2021[15]. - Net profit surged by approximately 195% in the first half of 2022, exceeding the total net profit of 2021 by about 17%[7]. - Gross profit increased by approximately 55.5% to about $26.6 million, while the gross profit margin decreased from approximately 29.3% to 27.5%[17]. - Revenue for the six months ended June 30, 2022, was $96,738,295, an increase from $58,390,044 for the same period in 2021, representing a growth of approximately 65.7%[70]. - Gross profit for the same period was $26,635,441, compared to $17,132,722 in 2021, indicating a year-over-year increase of about 55.3%[70]. - Net profit for the period was $5,066,988, significantly higher than $1,716,894 in the previous year, reflecting a growth of approximately 195.5%[70]. - Total comprehensive income for the period was $4,740,113, compared to $1,755,939 in 2021, marking an increase of around 169.5%[70]. - Basic earnings per share rose to $0.79 from $0.27, representing an increase of approximately 192.6%[70]. Cost and Expenses - Cost of sales rose by approximately 69.9% to about $70.1 million, with the cost of sales as a percentage of total revenue increasing from approximately 70.7% to 72.5%[16]. - Employee compensation totaled approximately $8.1 million for the six months ended June 30, 2022, marking an increase of about 33.7% compared to $6.0 million for the same period in 2021[23]. - The company’s tax expense for the six months ended June 30, 2022, was $1,017,260, significantly higher than $356,521 in the previous year[101]. - Total employee costs for the period were $8,081,457, an increase from $6,042,397 in the prior year[105]. Financial Position - As of June 30, 2022, the company's bank balances and cash amounted to approximately $24.0 million, up from $19.9 million as of December 31, 2021, indicating a strong financial position[20]. - The current ratio remained stable at approximately 1.6 times as of June 30, 2022, consistent with the previous reporting period[20]. - The company's debt-to-equity ratio increased to approximately 73.4% as of June 30, 2022, compared to 68.6% as of December 31, 2021, reflecting a rise in total liabilities[21]. - Cash and cash equivalents increased to $24,028,223 from $15,627,445, reflecting a growth of approximately 53.5%[83]. - The company’s total equity increased from $35,843,470 to $38,522,150, marking an increase of approximately 7.5%[74]. Market and Customer Insights - The company successfully attracted new customers and increased its market share in client procurement portfolios, driven by its industry-leading product variety[15]. - The company anticipates a cautious outlook from brands and retailers regarding future orders due to rising inflation and reduced disposable income among consumers[8]. - Revenue from the United States reached $64,041,345, up 91.8% from $33,394,391 in the previous year[96]. Risk Management and Governance - The company has established a risk management framework to oversee its risk management and internal control systems, ensuring effective governance[66]. - The company is committed to continuous evaluation and improvement of its risk management and internal control systems based on internal audit findings[68]. - The company has adopted the corporate governance code as per the listing rules and has complied with all relevant provisions during the review period[58]. - The audit committee consists of four independent non-executive directors and has reviewed the financial reporting procedures and internal control systems[60]. - No significant issues were found by the audit committee, and recommendations were made to enhance compliance with regulations[60]. Acquisitions and Investments - The company has made three acquisitions that laid the foundation for recent excess growth, despite the challenging market conditions[11]. - The company did not engage in any significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the review period[30]. - The company incurred total expenditures of approximately $139,000 for the acquisition of property, plant, and equipment during the period[109]. Shareholder Information - As of June 30, 2022, the company had issued a total of 639,100,000 shares[48]. - Mr. Sit has a controlled interest in 323,836,000 shares, representing approximately 50.67% of the company's equity[47]. - Ms. Che has a controlled interest in 323,836,000 shares, also representing approximately 50.67% of the company's equity[47]. - Mr. Seliger holds a beneficial interest in 25,600,000 shares, which is about 4.01% of the company's equity[47]. - Dr. Chan holds a beneficial interest in 24,000,000 shares, accounting for approximately 3.76% of the company's equity[47]. - Poolside Ventures Limited is identified as a cornerstone investor with a beneficial interest in 32,992,000 shares, representing 5.16% of the company's equity[53]. - Fung Trinity Holdings Limited holds 51,000,000 shares, which is approximately 7.98% of the company's equity[53]. Cash Flow and Financing - Operating cash flow before changes in working capital was $7,917,653, with a net cash from operating activities of $2,623,778, up from $324,554 in the previous year[81]. - The company reported a significant increase in financing activities, with net new bank borrowings of $8,153,389[83]. - The company obtained new bank loans totaling $67,286,000 during the six months ended June 30, 2022, compared to $31,183,000 in the same period last year, marking a significant increase of 115.6%[124]. - The interest rates on bank loans ranged from 3.66% to 4.73%, compared to 1.35% to 2.06% in the previous year, indicating a rise in borrowing costs[124]. Inventory and Trade Receivables - The company’s inventory increased by $2,029,628, indicating a strategic buildup in preparation for anticipated demand[81]. - Trade receivables as of June 30, 2022, were $13,570,853, an increase from $11,942,123 as of December 31, 2021, representing a growth of approximately 13.6%[112]. - The aging analysis of trade receivables shows that amounts overdue for 0 to 30 days increased to $12,364,894 from $8,219,497, a rise of 50.8%[114]. - Trade receivables measured at fair value amounted to $6,543,096 as of June 30, 2022, compared to $6,369,640 as of December 31, 2021[143].
利华控股集团(01346) - 2022 - 中期财报