Financial Performance - For the six months ended June 30, 2022, the Group recorded revenue of approximately HK$212.8 million, an increase of 36.1% compared to HK$156.4 million in the same period last year[9]. - Profit attributable to the owners of the Company increased approximately four times to about HK$9.3 million, with a profit margin of 4.4%, compared to HK$2.1 million and 1.4% in the first half of 2021[9]. - Reported net profit for the first half of 2022 was approximately HK$9.3 million, an increase from approximately HK$2.1 million in the first half of 2021, reflecting improved financial performance due to stable business development across multiple countries[28]. - Profit before tax increased significantly to HK$13,319,000, compared to HK$3,804,000 in the previous year, marking a growth of 250%[96]. - Basic earnings per share for the period were HK$0.46, compared to HK$0.11 for the same period in 2021, indicating a significant improvement in profitability[96]. - The Group's profit before tax for the six months ended June 30, 2022, was HK$9,273,000, compared to HK$2,136,000 for the same period in 2021, representing a significant increase[162]. Revenue Growth - The Group's unaudited consolidated revenue for the six months ended June 30, 2022, was approximately HK$212.8 million, representing a 36.1% increase compared to approximately HK$156.4 million in the same period of 2021[20][23]. - Revenue from Mainland China was HK$73,164,000, up 32% from HK$55,410,000 in the previous year[125]. - The Group's revenue from the sale of printing products was HK$212,853,000, with all revenue derived from this segment[135]. - The Group's geographical revenue distribution included HK$40,945,000 from Hong Kong, up from HK$30,158,000 in the previous year[125]. - The total revenue from Bangladesh, Vietnam, the United States, and other countries was HK$34,603,000, compared to HK$31,533,000 in the prior year[125]. Cost and Expenses Management - The Group implemented stringent cost control measures and optimized production capacity to mitigate the impact of rising raw material prices and labor costs[9]. - Selling and distribution expenses rose by approximately 24.5%, from approximately HK$22.2 million in the first half of 2021 to approximately HK$27.7 million in the first half of 2022, driven by increased marketing consultancy fees and salaries[26]. - Administrative expenses increased by approximately 13.8%, from approximately HK$44.8 million in the first half of 2021 to approximately HK$51.1 million in the same period of 2022, mainly due to rising labor costs and operational costs of expanding new subsidiaries[26]. - The total tax charge for the period was HK$4,046,000, compared to HK$1,668,000 in the prior period, representing an increase of approximately 142%[154]. Market Expansion and Client Acquisition - The Group successfully expanded its sales network, with Vietnam showing the highest growth rate in sales compared to other markets during the Review Period[10]. - The Group acquired two new clients in the Chinese market and secured numerous domestic brand clients, actively expanding its local market presence[10]. - Sales offices in emerging markets such as Mexico and Spain have commenced operations, with plans to establish new production bases in these regions in the second half of the year[10]. - In May 2022, the Group completed the acquisition of Print100 Limited, which is expected to enhance brand reputation and diversify income sources[16][18]. Sustainability and Innovation - The Group's strategic focus on green consumerism aligns with the increasing awareness among international apparel brands, driving new development momentum in the industry[8]. - The Group launched more environmentally friendly products made from recyclable materials to meet market demands and support ESG initiatives[15][17]. - The Group is committed to sustainability by using environmentally friendly materials and inks, including 100% water-based ink for heat transfer labels[45]. Financial Position and Assets - As of 30 June 2022, the Group had net current assets of approximately HK$98.7 million, down from approximately HK$107.8 million as of 31 December 2021[28]. - Cash and cash equivalents as of 30 June 2022 were approximately HK$95.5 million, a decrease from approximately HK$102.1 million as of 31 December 2021[30]. - Interest-bearing bank borrowings were approximately HK$11.5 million as of 30 June 2022, down from approximately HK$13.6 million as of 31 December 2021[30]. - The gearing ratio was approximately 2.9% as of 30 June 2022, down from approximately 3.4% as of 31 December 2021, indicating a solid financial position[30]. - Non-current assets totaled HK$170,584,000 as of June 30, 2022, up from HK$164,658,000 at the end of 2021, indicating a growth of 3.7%[100]. Corporate Governance - The Company has complied with all provisions of the Corporate Governance Code during the review period[47]. - The Company confirmed compliance with the corporate governance code as per the Listing Rules throughout the reporting period[56]. - The Group maintained high standards of corporate governance practices and procedures[56]. Employee and Management - Employee benefit expenses for the Reporting Period amounted to approximately HK$73.6 million, an increase from approximately HK$63.6 million in the same period of 2021[32]. - The Group had a total of 1,146 employees as of 30 June 2022, compared to 1,000 employees as of 30 June 2021[32]. - The compensation for key management personnel for the six months ended June 30, 2022, was HK$2,850,000, a decrease from HK$3,547,000 in the same period of 2021[190].
常达控股(01433) - 2022 - 中期财报