Financial Performance - For the six months ended June 30, 2023, the Group recorded revenue of approximately HK$116.4 million, a decrease of approximately 2.5% compared to HK$119.4 million for the same period in 2022[11]. - Gross profit for the same period was approximately HK$39.6 million, an increase from HK$38.5 million in 2022, reflecting a gross margin improvement[11]. - Profit before tax for the period was HK$3.1 million, slightly down from HK$3.2 million in the previous year[11]. - Net profit attributable to owners of the parent was approximately HK$2.6 million, a decrease of approximately HK$0.1 million compared to HK$2.7 million in 2022[11]. - The Group's total revenue for the six months ended June 30, 2023, was approximately HK$116.4 million, a decrease of about 2.5% from approximately HK$119.4 million for the same period in 2022[36]. - The gross profit for the Group increased from approximately HK$38.5 million to approximately HK$39.6 million, with the gross profit margin rising from approximately 32.2% to approximately 34.0%[43]. - The group's profit for the period attributable to owners of the parent remained stable at approximately HK$2.6 million for the six months ended 30 June 2023[65]. - The company reported a profit of HK$2,618,000 for the period, compared to a loss in the previous period[154]. - Total comprehensive income for the period was HK$835,000, an increase from HK$335,000 in the prior year[149]. Revenue Breakdown - Revenue from the sale of thermal imaging products and services decreased by approximately 12.3% to HK$37.1 million, accounting for approximately 31.9% of the Group's total revenue[21]. - Revenue from thermal imaging products and services decreased by approximately HK$5.2 million, or 12.3%, from approximately HK$42.3 million to approximately HK$37.1 million[36]. - Revenue from self-stabilised imaging products and services increased by approximately HK$5.8 million, or 46.0%, from approximately HK$12.6 million to approximately HK$18.4 million[41]. - Revenue from general aviation products and services decreased by approximately HK$4.2 million, or 6.5%, from approximately HK$64.3 million to approximately HK$60.1 million[42]. - The self-stabilised imaging products accounted for approximately 15.8% of the Group's revenue during the period, up from 10.6% in the previous year[27]. - The thermal imaging products and services accounted for approximately 31.9% of the Group's revenue during the period, down from 35.3% in the previous year[24]. - The general aviation products and services accounted for approximately 51.6% of the Group's revenue during the period, down from 53.9% in the previous year[29]. - Revenue from external customers for the six months ended June 30, 2023, was HK$116,404,000, a decrease from HK$119,397,000 in 2022[189]. - Revenue from Mainland China was HK$91,469,000 for the six months ended June 30, 2023, down from HK$95,061,000 in 2022[189]. - Revenue from Hong Kong and Macau increased to HK$21,299,000 in 2023 from HK$20,592,000 in 2022[189]. Assets and Liabilities - Total assets as of June 30, 2023, were HK$408.0 million, down from HK$419.8 million as of December 31, 2022[14]. - Total liabilities decreased to HK$60.1 million from HK$67.3 million as of December 31, 2022[14]. - As of June 30, 2023, the Group reported net current assets of approximately HK$325.6 million, a decrease from HK$331.7 million as of 31 December 2022[68]. - Total non-current assets decreased to HK$24,819,000 as of June 30, 2023, from HK$25,201,000 at December 31, 2022, representing a decline of 1.5%[151]. - Current assets totaled HK$383,211,000, down from HK$394,617,000, indicating a decrease of 2.9%[151]. - Total current liabilities decreased to HK$57,640,000 from HK$62,879,000, a reduction of 8.5%[151]. - Net assets as of June 30, 2023, were HK$347,916,000, down from HK$352,481,000, reflecting a decrease of 1.6%[152]. - Total equity attributable to owners of the parent decreased to HK$347,788,000 from HK$352,235,000, a decline of 1.3%[152]. Cash Flow and Investments - The net cash used in operating activities was approximately HK$3.8 million, a slight decrease from HK$4.0 million for the same period in 2022[74]. - The net cash used in investing activities increased significantly to approximately HK$10.8 million from HK$0.4 million in the previous year, mainly for investments in time deposits[75]. - Cash and cash equivalents decreased to HK$231,931,000 from HK$244,598,000, a drop of 5.2%[151]. - The company reported a net decrease in cash and cash equivalents of HK$18,249,000 for the six months ended June 30, 2023, compared to HK$7,892,000 in 2022, indicating a worsening cash position[157]. - The principal portion of lease payments in financing activities increased to HK$3,675,000 in 2023 from HK$3,438,000 in 2022, showing an increase of approximately 6.9%[156]. - The company made significant investments in property, plant, and equipment, with purchases totaling HK$821,000 in 2023, compared to HK$91,000 in 2022[156]. Corporate Governance and Shareholding - The Board believes that high corporate governance standards are essential for safeguarding shareholder interests and enhancing corporate value[101]. - As of June 30, 2023, the total number of ordinary shares issued by the company is 400,000,000[112]. - Mr. YEUNG holds 300,000,000 shares, representing approximately 75% of the total shareholding[112]. - Ms. WONG also holds 300,000,000 shares, which is approximately 75% of the total shareholding, as she is the spouse of Mr. YEUNG[112]. - The company is owned approximately 75% by Peiport Alpha Ltd., which is controlled by Mr. YEUNG and Ms. WONG[112]. - The company did not engage in any arrangements to enable Directors to acquire rights in any other corporate body during the reporting period[115]. - The company has adopted the standard code of conduct for securities transactions by directors as per the listing rules[107]. - All directors confirmed compliance with the standard code during the six months ended June 30, 2023[107]. Operational Challenges and Future Plans - The economic growth of Mainland China was 5.5% for the first half of 2023, which was below market expectations, impacting the Group's operational environment[16]. - The Group remains focused on maintaining effective operations despite external challenges, including rising inflation and tighter monetary policies[19]. - The Group plans to invest significant resources to address external challenges and maintain competitive advantages in the second half of 2023[33]. - The Group aims to enhance its research and development capabilities and grow its talent base to sustain its competitive edge[34].
彼岸控股(02885) - 2023 - 中期财报