Financial Performance - The company's revenue increased by approximately 3.6% from about $96.7 million in the first half of 2022 to approximately $100.2 million in the same period of 2023[12]. - Gross profit rose from approximately $26.6 million in the first half of 2022 to about $27.9 million in the first half of 2023, representing an increase of approximately 4.8%[13]. - The gross profit margin improved from approximately 27.5% in the first half of 2022 to about 27.9% in the first half of 2023[13]. - Revenue for the six months ended June 30, 2023, was $100,207,524, an increase of 3.8% from $96,738,295 in the same period of 2022[78]. - Gross profit for the same period was $27,915,589, compared to $26,635,441 in 2022, reflecting a growth of 4.8%[78]. - Profit before tax increased to $7,025,272, up from $6,084,248, representing a rise of 15.5% year-over-year[78]. - Net profit for the period was $5,830,617, compared to $5,066,988 in the previous year, marking a growth of 15.1%[78]. - The company reported total comprehensive income of $5,547,612 for the period, compared to $4,740,113 in the same period last year, reflecting a growth of 17%[79]. - The group recorded a net profit of approximately $5.8 million for the six months ended June 30, 2023, compared to $5.1 million for the same period in 2022, indicating an increase in profitability[144]. Expenses and Costs - Administrative expenses increased from approximately $8.3 million in the first half of 2022 to about $9.4 million in the first half of 2023, an increase of approximately $1.1 million[14]. - The cost of sales for the six months was $72,291,935, which is an increase from $70,102,854 in 2022, representing a rise of 3.1%[78]. - Administrative expenses increased to $9,425,961 from $8,292,126, showing a rise of 13.7% year-over-year[78]. - Sales costs increased by approximately 3.1% from about $70.1 million in the first half of 2022 to approximately $72.3 million in the review period, while the percentage of sales costs to total revenue decreased from about 72.5% to 72.1%[143]. - Total employee costs for the six months ended June 30, 2023, amounted to $9,875,076, up from $8,081,457 in the previous year, indicating a rise of about 22.2%[190]. - Performance-linked bonuses increased significantly to $2,022,100 from $467,759 year-on-year[157]. - The company reported a significant increase in director remuneration, which rose to $2,564,281 from $1,154,145, representing an increase of approximately 122.1%[190]. Financial Position - As of June 30, 2023, the company's equity amounted to approximately $46.4 million, down from $47.8 million on December 31, 2022[15]. - The debt-to-equity ratio as of June 30, 2023, was approximately 5.6%, significantly lower than 22.5% on December 31, 2022[15]. - The net debt-to-equity ratio as of June 30, 2023, was approximately -9.6%, improved from -26.8% as of December 31, 2022[59]. - The company maintains a healthy financial position with cash and cash equivalents of approximately $7.0 million as of June 30, 2023, down from $23.5 million on December 31, 2022[32]. - As of June 30, 2023, non-current assets totaled $6,674,036, a decrease of 8.9% from $7,328,917 as of December 31, 2022[80]. - Current assets increased to $74,698,881, up 1.2% from $73,703,515 as of December 31, 2022[80]. - Current liabilities decreased to $34,031,531, down 18.5% from $41,792,524 as of December 31, 2022[81]. - The company reported a significant reduction in bank borrowings to $2,594,015, down 75.8% from $10,727,160[81]. - Cash and cash equivalents decreased by approximately $16.26 million, ending at $7.03 million as of June 30, 2023, compared to $24.03 million at the end of 2022[130]. Strategic Initiatives - The company aims to pursue acquisitions as a primary source of growth due to the economic difficulties affecting the industry[25]. - The company plans to expand its smaller product categories through acquisitions or profit subsidies in the short term[27]. - The company is focusing on enhancing its product offerings and expanding market presence through strategic initiatives[82]. - Future outlook includes continued investment in new technologies and potential acquisitions to drive growth[82]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[112]. - The company has implemented new strategies to enhance operational efficiency and reduce costs, contributing to improved financial performance[112]. - The company is focused on maintaining a strong balance sheet while exploring potential acquisition opportunities to further enhance its market position[112]. Governance and Compliance - The company is set to achieve B Corporation certification, joining other sustainable brands in the apparel industry[10]. - The company remains committed to maintaining strong corporate governance and risk management practices[95]. - The company has established an internal audit function to assist the board and audit committee in evaluating and monitoring risk management and internal control systems[76]. - The audit committee has reviewed the accounting principles and policies adopted by the group and discussed the unaudited condensed consolidated financial statements for the six months ended June 30, 2023[73]. - There were no changes in the composition of the board of directors as of June 30, 2023, compared to the announcement made on March 28, 2023[46]. - The company maintained the same senior management composition as reported in the 2022 annual report as of June 30, 2023[47]. Cash Flow and Financing - The net cash flow from operating activities was $(540,049) for the current period, compared to $2,696,065 in the same period last year, showing a decline of approximately 120%[104]. - The net cash flow from investing activities was $247,152, a recovery from $(108,182) in the previous year, indicating a positive turnaround[105]. - The group experienced a net cash outflow of approximately $15.65 million from financing activities for the six months ended June 30, 2023, compared to a net inflow of $1.68 million in the same period of 2022[130]. - New bank borrowings amounted to $12,535,838, while repayments totaled $20,668,982, indicating a net decrease in borrowings[179]. Trade and Inventory - Inventory rose significantly to $16,389,620, an increase of 13.3% compared to $14,464,428 in the previous period[80]. - Trade receivables and notes receivable increased to $28,161,856, reflecting a growth of 12.5% from $25,046,126[80]. - Trade receivables increased to $30.02 million as of June 30, 2023, from $26.91 million at the end of 2022, indicating a rise in customer contracts[147]. - The total amount of overdue trade receivables was $185,755, with no impairment losses recognized due to strong credit quality[177]. - The company's trade receivables aged over 60 days increased to $4,504,495 from $2,498,214, indicating a rise of approximately 80.5%[195].
利华控股集团(01346) - 2023 - 中期财报