Revenue Performance - For the six months ended June 30, 2022, the total revenue of the group was HKD 374,700,000, a decrease of 37.3% compared to HKD 597,500,000 for the same period in 2021[17]. - The supply chain business generated revenue of HKD 342,500,000, down HKD 248,500,000 from HKD 591,000,000 in the previous year, reflecting a significant decline due to reduced usage of non-ferrous metals and construction materials[9]. - The hotel management and catering services segment recorded revenue of HKD 28,400,000 during the review period, compared to zero revenue in the same period last year[17]. - The total revenue from lending, securities investment, leasing, and property investment was approximately HKD 3,700,000, down from HKD 6,500,000 in the previous year[17]. - Total revenue for the six months ended June 30, 2022, was HKD 374,684,000, a decrease of 37.4% compared to HKD 597,499,000 for the same period in 2021[59]. - Revenue from supply chain business was HKD 338,876, while hotel management and catering services generated HKD 24,165[90]. Profitability - Net profit for the six months ended June 30, 2022, was approximately HKD 31.3 million, an increase from HKD 12.8 million for the same period in 2021, mainly due to increased dividend income from financial assets and reduced financial costs[20]. - Operating profit for the period was HKD 50,968,000, compared to HKD 45,210,000 in the previous year, reflecting an increase of 12.3%[59]. - Profit before tax increased to HKD 33,762,000, up 70.7% from HKD 19,774,000 in the prior year[59]. - The company reported a profit of HKD 31,266,000 for the six months ended June 30, 2022, compared to HKD 12,827,000 in the same period of 2021, representing a year-over-year increase of 143.5%[61]. - The company's profit attributable to equity shareholders for the six months ended June 30, 2022, was HKD 31,266,000, compared to HKD 12,827,000 for the same period in 2021, representing a significant increase of 143.5%[100]. Expenses and Costs - The group's direct costs and operating expenses decreased significantly from HKD 563.7 million to HKD 327.6 million for the six months ended June 30, 2022, primarily due to a decline in supply chain business, which accounted for over 91% of total revenue during the period[19]. - Total income tax expense for the six months ended June 30, 2022, was HKD 2,496,000, a decrease of 64.0% from HKD 6,947,000 in 2021[98]. - The total remuneration for key management personnel for the six months ended June 30, 2022, was HKD 2,173,000, a decrease of 20.7% compared to HKD 2,742,000 for the same period in 2021[23]. Assets and Liabilities - As of June 30, 2022, cash and cash equivalents amounted to HKD 62 million, up from HKD 15.4 million at the end of 2021, while interest-bearing borrowings increased to HKD 568.2 million from HKD 527.6 million[25]. - The capital debt ratio increased to 89.4% as of June 30, 2022, from 81.6% at the end of 2021, mainly due to increased lease liabilities from the acquisition of a subsidiary[25]. - Non-current assets increased to HKD 525,424,000 as of June 30, 2022, up from HKD 459,856,000 at the end of 2021, reflecting a growth of 14.2%[64]. - Current assets decreased to HKD 989,704,000 from HKD 1,092,003,000, indicating a decline of 9.4%[64]. - The total liabilities decreased to HKD 767,953,000 from HKD 841,446,000, reflecting a reduction of 8.7%[64]. - The company’s equity attributable to shareholders was HKD 635,775,000, down from HKD 646,416,000, a decrease of 1.0%[67]. Investments and Acquisitions - The group completed the acquisition of all issued shares of Zhuojian Industrial Group for HKD 120,000,000, expanding into hotel management and catering services[11]. - The company acquired 100% of the issued shares of 卓見實業集團 for a total cash consideration of approximately HKD 120,000,000 on April 1, 2022[140]. - The identifiable net assets of 卓見實業集團 at the acquisition date had a fair value of HKD 116,145,000, resulting in goodwill of HKD 3,855,000[142]. - The acquired subsidiary contributed approximately HKD 28,435,000 to the company's revenue, but incurred a loss of about HKD 8,781,000 from the acquisition date to the end of the reporting period[144]. Shareholder Information - Major shareholders include Teng Le Holdings with 1,092,000,000 shares (28.00%) and Yongheng Holdings with 720,000,000 shares (18.46%) as of June 30, 2022[44]. - The total number of shares outstanding as of June 30, 2022, was 3,900,000,000[42]. - The weighted average number of ordinary shares issued increased to 3,900,000 for the six months ended June 30, 2022, from 3,441,436 in 2021, reflecting a growth of 13.3%[100]. Corporate Governance and Compliance - The audit committee reviewed the interim financial statements for the six months ended June 30, 2022, with no objections to the accounting treatment adopted by the group[53]. - The company has complied with the corporate governance code principles during the reporting period, with minor deviations noted[49]. - The company maintained a sufficient public float of at least 25% of its issued shares as required by the listing rules[54]. Financial Reporting and Standards - The interim financial data is prepared in accordance with the Hong Kong Financial Reporting Standards and is unaudited, reviewed by a certified public accountant firm[76]. - The company adopted several revised Hong Kong Financial Reporting Standards during the reporting period, which did not have a significant impact on the financial position and performance[78]. - The company has not reported any significant changes in accounting policies that would materially affect the financial statements during the interim period[78]. Risk Management - The group will continue to adopt prudent risk management policies in its lending business, with no recorded receivables as of June 30, 2022[14]. - The company will maintain a cautious investment strategy in securities, closely monitoring market changes and adjusting its portfolio as necessary[15]. - The management will maintain steady development in the leasing business while adhering to regulatory requirements and strict risk control[39]. Other Information - No interim dividend was declared for the six months ended June 30, 2022, compared to zero HKD for the same period in 2021[36]. - No significant events occurred after the reporting period[38]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2022[47].
百德国际(02668) - 2022 - 中期财报