Revenue Performance - For the six months ended June 30, 2023, the group recorded revenue of approximately HKD 266.2 million, a decrease of about 2.5% compared to HKD 273.0 million for the same period in 2022[11]. - Revenue from Chinese customers was approximately HKD 220.0 million, reflecting a slight increase of about 4.9% from HKD 209.7 million in the same period of 2022, primarily due to the effective implementation of OBM sales strategies[11]. - Revenue from overseas customers decreased significantly to approximately HKD 46.3 million, down from HKD 63.3 million in the same period of 2022, attributed to the ongoing impact of the COVID-19 pandemic on the global economy[11]. - Revenue for the six months ended June 30, 2023, was HKD 266,237,000, a decrease of 2.9% from HKD 273,025,000 in the same period of 2022[46]. - Revenue from the automotive beauty and maintenance products segment was HKD 208,788,000, while personal care products generated HKD 57,449,000[66]. - The company continues to focus on expanding its market presence, particularly in mainland China, which generated HKD 219,954,000 in revenue from both segments combined[74]. Profitability - The group recorded a gross profit of approximately HKD 85.8 million for the six months ended June 30, 2023, representing an increase of about 21.8% compared to HKD 70.4 million for the same period in 2022[13]. - Profit before tax rose significantly to HKD 34,689,000, up 101.3% from HKD 17,255,000 in the previous year[46]. - The net profit attributable to the company's owners was approximately HKD 26.7 million, a significant increase of about 102.8% from HKD 13.2 million in the same period last year[20]. - Net profit for the period was HKD 26,708,000, which is a 103.3% increase from HKD 13,135,000 in 2022[46]. - The group’s profit before tax for the six months ended June 30, 2023, was HKD 26,733,000, compared to HKD 13,179,000 for the same period in 2022, representing a 102.5% increase[84]. Cost Management - The group's cost of sales for the six months ended June 30, 2023, was approximately HKD 180.5 million, representing about 67.8% of revenue, a decrease from 74.2% in the same period of 2022, mainly due to lower procurement costs for raw materials[12]. - Selling and distribution expenses were approximately HKD 16.8 million, down 6.5% from HKD 18.0 million in the previous year, attributed to reduced transportation costs and strict cost control measures[17]. - Administrative expenses increased by approximately 9.6% to HKD 24.5 million from HKD 22.3 million, mainly due to higher depreciation and employee compensation costs[18]. - Financing costs decreased by approximately 25.7% to HKD 1.4 million from HKD 1.9 million, due to a reduction in the average outstanding bank loan balance[19]. - The cost of goods sold decreased to HKD 180,462,000 in 2023 from HKD 202,625,000 in 2022, a reduction of 10.9%[78]. Assets and Liabilities - As of June 30, 2023, the group held a net current asset value of approximately HKD 72.2 million, up from HKD 58.3 million as of December 31, 2022[23]. - The group had bank borrowings of approximately HKD 55.7 million as of June 30, 2023, compared to HKD 50.8 million at the end of 2022[24]. - The debt-to-equity ratio was approximately 16.3% as of June 30, 2023, down from 23.4% at the end of 2022[26]. - Total assets as of June 30, 2023, were HKD 413,735,000, slightly up from HKD 410,564,000 at the end of 2022[49]. - Current assets increased to HKD 206,557,000 from HKD 190,264,000, indicating a growth of 8.5%[49]. - The company reported a total equity of HKD 278,064,000, an increase from HKD 267,647,000 at the end of 2022[52]. - Total liabilities as of June 30, 2023, were HKD 202,264,000, slightly down from HKD 207,561,000 as of December 31, 2022[72]. Cash Flow and Investments - Cash generated from operating activities increased to HKD 33,305,000 in 2023 from HKD 16,629,000 in 2022, reflecting a growth of 100.1%[59]. - The net cash used in investing activities was HKD 8,356,000, slightly higher than HKD 7,773,000 in 2022, reflecting ongoing investments in property, plant, and equipment[62]. - New bank loans amounted to HKD 16,540,000, a significant decrease from HKD 107,914,000 in the previous year, indicating a shift in financing strategy[62]. - The company paid dividends of HKD 6,293,000 during the period, compared to HKD 2,199,000 in the same period last year, representing an increase of 186.5%[62]. - The company experienced a foreign exchange loss of HKD 1,301,000, compared to a loss of HKD 585,000 in the previous year, indicating increased volatility in currency markets[62]. Shareholder Information - As of June 30, 2023, the total number of issued shares is 233,917,250[124]. - The beneficial ownership of the directors and key executives includes a total of 175,288,500 shares, representing approximately 74.94% of the issued shares[119]. - The company’s major shareholder, Mrs. Lian, holds 107,788,500 shares and has a family interest of 67,000,000 shares[119]. - The company must obtain independent non-executive director approval before granting options to directors, CEOs, or major shareholders[115]. - The total number of options granted under the Pre-IPO Share Option Scheme is 7,765,000 shares, which is about 2.91% of the total issued shares[131]. Corporate Governance - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2023, and recommended their adoption to the board[142]. - The company has complied with the corporate governance code except for the separation of the roles of chairman and CEO, which are currently held by the same individual[146]. - The remuneration committee was established to provide recommendations on the remuneration policies for all directors and senior management[144]. - The nomination committee was formed to review the board structure and ensure a balanced mix of skills and experience among board members[145]. - The company was registered as an exempted company in the Cayman Islands on May 4, 2018, and underwent a restructuring plan to streamline its corporate structure[140].
保宝龙科技(01861) - 2023 - 中期财报