Financial Performance - The company reported revenue of approximately HKD 70,740,000 for the six months ended June 30, 2023, a decrease of about HKD 7,470,000 or 10% compared to HKD 78,210,000 for the same period in 2022[5]. - The company incurred a loss of approximately HKD 8,440,000 during the reporting period, an increase of about HKD 680,000 or 9% from a loss of HKD 7,760,000 in the same period last year[5]. - Revenue for the six months ended June 30, 2023, was HKD 70,735,000, a decrease of 9.4% compared to HKD 78,213,000 for the same period in 2022[57]. - The group reported a loss before tax of HKD 9,089,000 for the six months ended June 30, 2023, compared to a loss of HKD 7,759,000 in the previous period[96]. - The total comprehensive loss for the six months ended June 30, 2023, was HKD 19,229,000, compared to HKD 27,252,000 for the same period in 2022, showing an improvement in overall loss performance[64]. Revenue Breakdown - Revenue from the cigarette packaging business was approximately HKD 70,810,000, an increase of HKD 1,550,000 or 2% compared to HKD 69,260,000 in the previous year[6]. - As of June 30, 2023, the group reported revenue of HKD 70,735 thousand, with the cigarette packaging business contributing HKD 70,806 thousand and the environmental governance business reporting a loss of HKD 121 thousand[92]. - For the six months ended June 30, 2023, the total revenue was HKD 70,806,000 for cigarette packaging and HKD 50,000 for agency services, totaling HKD 70,856,000, compared to HKD 69,928,000 in the same period of 2022[100]. Expenses and Losses - The overall gross profit for the reporting period was approximately HKD 17,920,000, an increase of HKD 4,080,000 or 29% from HKD 13,840,000 in the previous year, with a gross profit margin rising from 18% to 25%[7]. - Administrative expenses were approximately HKD 21,700,000, a decrease of about HKD 760,000 or 3% from HKD 22,460,000 in the same period last year[9]. - The group experienced an operating loss of HKD 8,400 thousand, with a net financing income of HKD 477 thousand, leading to a pre-tax loss of HKD 7,923 thousand[92]. - The company reported a net loss of HKD 8,073,000 for the six months ended June 30, 2023, compared to a net loss of HKD 7,342,000 for the same period in 2022, indicating an increase in losses of about 10%[64]. Cash Flow and Financial Position - The company had total cash and restricted cash of approximately HKD 68,120,000 as of June 30, 2023, a decrease from HKD 91,230,000 as of December 31, 2022[14]. - Cash flows from operating activities showed a net outflow of HKD 6,855,000 for the six months ended June 30, 2023, compared to a net inflow of HKD 31,649,000 in the previous year, representing a significant decline[65]. - The company's cash and cash equivalents decreased by HKD 16,262,000 during the first half of 2023, compared to an increase of HKD 22,180,000 in the same period of 2022[69]. - The total assets of the group as of June 30, 2023, amounted to HKD 504,455,000, a decrease from HKD 577,266,000 as of December 31, 2022[98]. Shareholder Information - The board did not recommend any interim dividend during the reporting period, consistent with the previous year[31]. - As of June 30, 2023, Mr. Zheng Yisheng holds 450,000,000 shares, representing 64.15% of the company's total issued shares[36]. - The total number of issued ordinary shares of the company is 701,430,000[40]. - The new share option plan allows for the issuance of up to 70,143,000 shares, which is 10% of the total issued shares as of June 16, 2023[42]. Governance and Compliance - The company has adopted and applied the corporate governance code as per the listing rules to enhance shareholder value[46]. - The audit committee reviewed the interim report and confirmed compliance with applicable accounting standards and legal requirements[54]. - The company maintained compliance with corporate governance codes, although there were deviations regarding the roles of the chairman and CEO[48]. Capital Expenditure and Commitments - Total capital expenditure during the review period was approximately HKD 7,990,000, significantly lower than HKD 46,030,000 for the same period in 2022[25]. - As of June 30, 2023, the group had capital commitments of approximately HKD 5,440,000, an increase from HKD 4,420,000 as of December 31, 2022[26]. Risk Management - The group’s financial risk management focuses on minimizing the impact of potential adverse factors on financial performance, with no changes to risk management policies since the end of the reporting period[81]. - The group’s cash and cash equivalents, restricted cash, and trade receivables are primarily held in reputable financial institutions in China and Hong Kong, with no significant credit risk identified[83].
华禧控股(01689) - 2023 - 中期财报