Financial Performance - For the six months ended June 30, 2023, the company's revenue was HKD 113.2 million, a decrease of approximately 29.8% compared to HKD 161.2 million for the same period in 2022[6]. - The gross profit for the same period was HKD 37.0 million, with a gross margin of 32.7%, compared to a gross profit of HKD 50.5 million and a gross margin of 31.3% in the previous year[15]. - The operating profit for the six months ended June 30, 2023, was HKD 14.4 million, down from HKD 22.3 million in the same period of 2022[6]. - The net profit attributable to equity holders was HKD 9.1 million, compared to HKD 12.9 million in the previous year, reflecting a decline of approximately 29.5%[6]. - The OEM business generated revenue of approximately HKD 106.7 million, a decrease of about 29.1% from HKD 150.6 million in the same period last year[13]. - The "Youyou Monkey" business recorded revenue of approximately HKD 6.5 million, down approximately 39.1% from HKD 10.6 million in the previous year[14]. - The overall comprehensive income for the six months was HKD 4,454,000, down 39.5% from HKD 7,328,000 in the previous year[46]. - The company reported a net profit of HKD 9,063,000 for the six months ended June 30, 2023, compared to HKD 12,947,000 for the same period in 2022, a decrease of 30%[53]. Cost and Expenses - Sales expenses for the six months ended June 30, 2023, were approximately HKD 4.8 million, a decrease of about HKD 3.7 million or 43.7% compared to HKD 8.4 million for the same period in 2022[16]. - Administrative expenses for the six months ended June 30, 2023, were approximately HKD 19.1 million, a decrease of about HKD 2.6 million, representing 16.9% of total revenue, up from 13.5% in the same period last year[18]. - Other income and gains for the six months ended June 30, 2023, were approximately HKD 1.2 million, down from HKD 2.1 million for the same period in 2022[19]. - The total expense for share-based payments recognized for the period ended June 30, 2023, was HKD 268,000, a decrease from HKD 683,000 in 2022[19]. Economic Challenges - The company continues to face challenges due to weak economic performance, inflation, and geopolitical uncertainties affecting customer demand and order levels[10]. - The company anticipates challenges ahead due to ongoing geopolitical tensions and high inflation affecting market recovery[36]. - The OEM business performance is heavily reliant on the U.S. market, which is currently constrained by various negative economic factors[36]. - The "Youyou Mami" business is facing challenges from local competition and a shift in consumer purchasing habits from offline to online[37]. Cash Flow and Assets - Cash and cash equivalents as of June 30, 2023, were approximately HKD 146.4 million, an increase from HKD 134.8 million as of December 31, 2022[24]. - The group recorded foreign exchange gains of approximately HKD 0.6 million for the six months ended June 30, 2023, compared to HKD 0.4 million in the same period last year[27]. - Total assets as of June 30, 2023, amounted to HKD 241,106,000, a decrease of 3.4% from HKD 249,286,000 as of December 31, 2022[48]. - Non-current assets decreased to HKD 35,981,000 from HKD 43,860,000, representing a decline of 18%[48]. - Current assets remained stable at HKD 205,125,000, slightly down from HKD 205,426,000[48]. - Total liabilities decreased to HKD 40,570,000 from HKD 41,472,000, a reduction of 2.2%[51]. - Operating cash flow for the six months ended June 30, 2023, was HKD 26,155,000, up from HKD 21,450,000, indicating a growth of 21%[55]. Shareholder Information - The ownership structure shows that Mr. Zhong and Mr. Zhou each hold 75,000,000 shares, representing 37.5% of the company[103]. - Major shareholders include L.V.E.P. Holdings and Ching Wai Holdings, each holding 75,000,000 shares, equating to 37.5%[109]. - The spouse of Mr. Zhou holds an additional 75,200,000 shares, representing 37.6% of the company[109]. - The company confirmed that there were no other interests or short positions held by directors or senior management as of June 30, 2023[107]. Corporate Governance - The audit committee has reviewed the unaudited condensed consolidated interim financial information for the six months ended June 30, 2023, and recommended its approval to the board[131]. - The company has adopted and complied with the corporate governance code as per the listing rules for the six months ended June 30, 2023[130]. - The audit committee consists of all independent non-executive directors, ensuring oversight of financial reporting and risk management[122]. - The remuneration committee is responsible for reviewing and approving management's compensation proposals, ensuring no director participates in determining their own remuneration[123]. - The nomination committee is tasked with recommending appointments of directors and senior management to the board[124].
万成集团股份(01451) - 2023 - 中期财报