Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 479.0 million, a decrease of 51.2% compared to HKD 982.0 million in the same period of 2022[8]. - Gross profit for the same period was HKD 71.2 million, down 47.5% from HKD 135.6 million year-on-year, with a gross margin of 14.9%[8]. - The profit attributable to owners of the company was HKD 0.5 million, representing a 25.0% increase from HKD 0.4 million in the previous year[8]. - Operating loss before tax was HKD 6,311,000, compared to a profit of HKD 426,000 in the previous year[14]. - Net profit for the period was HKD 490,000, slightly up from HKD 426,000 in the prior year[17]. - The total comprehensive income for the period was a loss of HKD 30,197,000, compared to a loss of HKD 52,076,000 in the same period last year[17]. - Revenue for the period was approximately HKD 479.0 million, a decrease of about 51.2% compared to the same period in 2022[73]. - Gross profit for the period was approximately HKD 71.2 million, with a gross margin of 14.9%, up from 13.8% in the same period last year[83]. Assets and Liabilities - The company's total assets decreased to HKD 1,397.8 million as of June 30, 2023, from HKD 1,684.0 million as of December 31, 2022[10]. - Current ratio improved to 1.91 as of June 30, 2023, compared to 1.53 at the end of 2022[8]. - The debt-to-equity ratio decreased to 2.8% from 44.7% year-on-year, indicating a significant reduction in leverage[8]. - Cash and cash equivalents increased to HKD 197.9 million from HKD 73.7 million at the end of 2022[10]. - Trade receivables decreased to HKD 199.8 million from HKD 273.5 million, reflecting a decline in sales activity[10]. - As of June 30, 2023, the total borrowings amounted to HKD 217,361,000, a decrease of 44.9% from HKD 393,982,000 as of December 31, 2022[49]. - Trade payables as of June 30, 2023, totaled HKD 33,146,000, a decrease of 38.5% from HKD 53,802,000 as of December 31, 2022[52]. Cash Flow - Cash generated from operating activities was HKD 198,983,000, an increase of 91.1% from HKD 104,050,000 in the same period last year[21]. - The net cash used in investing activities was HKD 416,000, compared to HKD 6,312,000 in the previous year[21]. - The net cash used in financing activities was HKD 62,588,000, a significant decrease from the net cash generated of HKD 4,170,000 in the prior year[21]. - The cash and cash equivalents at the end of the period were HKD 197,933,000, up from HKD 133,217,000 at the end of June 2022[21]. Expenses and Costs - The cost of goods sold for the period was HKD 407,776,000, down 51.9% from HKD 846,390,000 in the previous year[53]. - Employee benefit expenses decreased to HKD 39,045,000 in the first half of 2023 from HKD 66,467,000 in the same period of 2022, a reduction of 41.3%[53]. - Administrative expenses decreased from approximately HKD 98.7 million to HKD 87.4 million, primarily due to reduced salary and welfare expenses[85]. - Financial costs decreased to approximately HKD 8.1 million from HKD 11.8 million, attributed to a reduction in average borrowing balance[89]. Shareholder Information - The company did not declare an interim dividend for the six months ended June 30, 2023[9]. - The company did not declare any dividends for the six months ended June 30, 2023, and 2022[62]. - The group has issued share capital of HKD 120 million, divided into 1,200 million shares as of June 30, 2023[96]. - As of June 30, 2023, Mr. Pan Zhaolong holds 900,000,000 shares, representing 75% of the issued share capital[122]. Risk Management - The company has not faced significant stock price risk and has maintained its risk management policies since the last fiscal year-end[31]. - Management believes that long-term fluctuations in aluminum prices will not have a significant impact on the company's profitability and cash flow[34]. - The company continues to manage aluminum price risks through aluminum futures contracts, with losses from these contracts decreasing significantly[87]. Corporate Governance - The company has maintained compliance with the corporate governance code, although the roles of Chairman and CEO are held by the same individual since July 1, 2022[127]. - Independent non-executive director Mr. Man Yiu Kwong has been appointed as the chairman of the audit and nomination committees, with an increase in his director's fee from HKD 15,000 to HKD 20,000 per month effective April 1, 2023[128]. - The company has established an audit committee consisting of three independent non-executive directors to oversee financial reporting and internal controls[133]. - The interim financial statements for the period have been reviewed by the audit committee but remain unaudited[134].
荣阳实业(02078) - 2023 - 中期财报