Financial Performance - The company's revenue for the six months ended June 30, 2022, was approximately HKD 78.21 million, a decrease of about 65% compared to HKD 223.79 million for the same period in 2021[6]. - The company recorded a loss attributable to shareholders of approximately HKD 7.34 million, compared to a profit of HKD 42.5 million in the same period of 2021[13]. - Gross profit for the reporting period was approximately HKD 13.84 million, down from HKD 70.19 million in 2021, resulting in a gross profit margin decrease from 31% to 18%[7]. - Revenue from the cigarette packaging business was approximately HKD 69.26 million, down from HKD 99.41 million in the same period of 2021[6]. - Revenue from environmental remediation business was approximately HKD 8.76 million, significantly down from HKD 121.27 million in the same period of 2021[6]. - Operating loss for the six months ended June 30, 2022, was HKD 14,323 thousand, compared to an operating profit of HKD 51,651 thousand in the previous year[66]. - The net loss for the period was HKD 7,759 thousand, a stark contrast to the net profit of HKD 42,198 thousand reported in the same period of 2021[66]. - The group reported a total revenue of HKD 78,213,000 for the six months ended June 30, 2022, a decrease from HKD 223,787,000 in the same period of 2021[151]. Assets and Liabilities - The company's net asset value as of June 30, 2022, was approximately HKD 423.44 million, down from HKD 450.82 million as of December 31, 2021[14]. - Total assets as of June 30, 2022, amounted to HKD 635,853 thousand, down from HKD 732,977 thousand as of December 31, 2021[71]. - Current assets decreased to HKD 536,385 thousand from HKD 675,999 thousand, indicating a reduction in liquidity[71]. - The total equity attributable to the owners of the company was HKD 423,443 thousand, compared to HKD 450,817 thousand in the previous year[74]. - The group’s liabilities totaled HKD 212,410,000 as of June 30, 2022, with segment liabilities in cigarette packaging at HKD 110,124,000 and environmental governance at HKD 264,200,000[145]. - The group’s total liabilities increased from HKD 282,160,000 as of December 31, 2021, to HKD 212,410,000 as of June 30, 2022[149]. Cash Flow - Operating cash flow for the six months ended June 30, 2022, was HKD 35,476,000, an increase of 30.5% compared to HKD 27,237,000 in 2021[91]. - Net cash from operating activities increased to HKD 31,649,000 from HKD 19,408,000, representing a growth of 62.5%[91]. - Cash used in investing activities was HKD 31,832,000, a significant decrease from HKD 11,468,000 in the previous year[93]. - Cash flow from financing activities generated HKD 22,363,000, compared to a cash outflow of HKD 28,975,000 in 2021[93]. - Total cash and cash equivalents at the end of the period stood at HKD 88,715,000, down from HKD 106,989,000 in the previous year[93]. - The company reported a net increase in cash and cash equivalents of HKD 22,180,000, compared to an increase of HKD 1,901,000 in the same period last year[93]. Employee and Administrative Expenses - Administrative expenses for the reporting period were approximately HKD 22.46 million, a decrease of about HKD 3.32 million compared to HKD 25.78 million in 2021[8]. - The total number of employees as of June 30, 2022, was 314, a decrease from 341 employees on June 30, 2021[30]. - The group’s employee costs, including director remuneration, were HKD 20,217,000 for the six months ended June 30, 2022, slightly up from HKD 19,680,000 in the previous year[159]. Dividends and Shareholder Returns - The group did not recommend any interim dividend during the reporting period, compared to an interim dividend of HKD 0.04 per share in the previous year[32]. - The company paid HKD 421,000 in dividends during the reporting period, compared to no dividends paid in the previous year[93]. - The basic loss per share for the six months ended June 30, 2022, was HKD (1.05) compared to earnings of HKD 6.06 per share in the previous year[170]. - The company did not declare an interim dividend for the six months ended June 30, 2022, while it declared a dividend of HKD 0.04 per share for the same period in 2021[172]. Risk Management and Governance - The group has established sufficient risk management procedures to identify and control various risks in line with the best interests of the organization and its shareholders[35]. - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange's listing rules[53]. - There were no significant legal or regulatory non-compliance issues reported during the review period[61]. Business Strategy and Future Outlook - The group plans to continue consolidating its cigarette packaging business and strengthen relationships with existing customers despite the ongoing impact of the COVID-19 pandemic[29]. - The group is actively seeking business and investment opportunities to maximize shareholder value amid a challenging economic environment[29]. - The group has not made any significant acquisitions or disposals of subsidiaries during the reporting period[31].
华禧控股(01689) - 2022 - 中期财报