Financial Performance - Revenue for the six months ended June 30, 2022, was HK$938.615 million, an increase of 18.8% compared to HK$789.624 million in the same period of 2021[10] - Gross profit for the period was HK$152.685 million, representing a gross margin of 16.3%, up from HK$134.440 million in 2021[10] - Operating loss narrowed to HK$45.908 million from HK$88.969 million year-on-year, indicating improved operational efficiency[10] - Loss for the period was HK$68.435 million, a decrease from HK$92.606 million in the previous year, reflecting a 26.1% improvement[10] - Total comprehensive loss for the period amounted to HK$181.919 million, compared to a total comprehensive income of HK$46.827 million in 2021[15] - Other income decreased to HK$12.588 million from HK$18.840 million, indicating a decline of 33.4%[10] - Other gains, net, increased significantly to HK$34.920 million from HK$9.569 million, showing a growth of 264.5%[10] - Administrative expenses decreased to HK$134.784 million from HK$150.257 million, a reduction of 10.3%[10] - Finance income for the period was HK$4.430 million, down from HK$5.533 million, reflecting a decrease of 19.9%[10] - The company reported a provision for impairment loss for financial assets of HK$14.905 million, compared to HK$4.422 million in the previous year[10] - The company reported a loss attributable to equity holders of HK$68,395,000 for the six months ended June 30, 2022, compared to a loss of HK$93,919,000 in the same period of 2021, representing a 27% improvement[20] - Total comprehensive loss attributable to equity holders was HK$180,132,000, significantly higher than the comprehensive income of HK$44,860,000 in the prior year[20] - Basic and diluted loss per share for equity holders was HK$3.26, an improvement from HK$4.47 in the previous year[20] Assets and Liabilities - Total assets decreased to HK$3,784,436,000 as of June 30, 2022, down from HK$3,985,839,000 at the end of 2021, reflecting a 5% decline[23] - Current assets were reported at HK$1,457,050,000, a decrease from HK$1,518,644,000 at the end of 2021[23] - Total equity decreased to HK$2,532,039,000 as of June 30, 2022, compared to HK$2,713,958,000 at the end of 2021, indicating a 7% reduction[27] - Non-current liabilities totaled HK$147,881,000, slightly down from HK$159,085,000 at the end of 2021[27] - Current liabilities increased to HK$1,104,516,000 from HK$1,112,796,000 at the end of 2021, showing a marginal decrease[27] Cash Flow - Net cash generated from operating activities was HK$24,515,000, a significant improvement from a cash outflow of HK$18,232,000 in the prior year[41] - The company experienced a net cash outflow from investing activities of HK$244,361,000, compared to a cash inflow of HK$220,084,000 in the previous year[41] - The total cash and cash equivalents at 30 June 2022 were HK$487,231,000, down from HK$641,778,000 at the same time last year[41] - The cash and cash equivalents decreased by HK$241,167,000 during the period[41] - The company’s cash flow from financing activities showed a net outflow of HK$21,321,000, compared to HK$142,259,000 in the previous year[41] Financial Instruments and Risk Management - The Group's financial risk management includes exposure to market risk, credit risk, and liquidity risk, with no material changes in risk management policies since year-end[76] - The Group's financial instruments are classified into three levels based on the reliability of inputs used in determining fair value[81] - The fair value of the Group's financial instruments carried at cost or amortised cost approximates their fair values as of the reporting date due to short maturities or interest rates close to current market rates[108] - The Group's liquidity risk remains stable compared to the year ended December 31, 2021, with no significant changes in contractual undiscounted cash flows for financial liabilities[79] Segment Information - The Group has three reportable segments: OEM manufacturing and sales of garments, retailing of branded fashion apparel, and property investment in the PRC[124] - Revenue from external customers in the PRC reached HK$567,853,000, up from HK$498,308,000 in 2021, indicating a growth of about 13.9%[145] - The North America segment generated revenue of HK$281,214,000, an increase from HK$219,043,000 in 2021, reflecting a growth of approximately 28.4%[145] - The total segment loss before income tax for the first half of 2022 was HK$46,453,000, an improvement compared to a loss of HK$83,614,000 in the same period of 2021[139] Capital Expenditure and Investments - The total capital expenditure for the six months ended June 30, 2022, included HK$10,675,000, with significant investments in properties and equipment[156] - As of June 30, 2022, total non-current assets amounted to HK$1,345,903,000, a decrease from HK$1,384,546,000 as of December 31, 2021, representing a decline of approximately 2.8%[148] - The Group's total assets in the PRC were HK$1,142,628,000 as of June 30, 2022, down from HK$1,176,926,000 as of December 31, 2021, a decrease of approximately 2.9%[148] - The Group accounted for Hangzhou Gaoming as an associate after acquiring a 14% equity interest for approximately HK$10,263,000[168] Impairment and Valuation - An impairment of HK$5,418,000 was recognized for the exclusive supply right of Cartelo brand apparel products during the six months ended June 30, 2022, due to a decline in recoverable amount[160] - The fair value of investment properties is determined by an independent valuer, considering current rental income and potential rental increases[160] - The carrying amount of properties was HK$252,621,000 and the fair value was HK$373,595,000 on the date of transfer[164] - The excess of the fair value over the carrying amount (net of deferred tax) was HK$91,067,000, recorded in other comprehensive income as revaluation surplus[164] Accounting Policies and Standards - The company has adopted amendments to existing standards and annual improvements, which did not impact its accounting policies[54] - The Group's financial statements are not expected to be significantly affected by the new standards and amendments effective from January 1, 2023[70] - The Group's significant judgements and estimates in preparing interim financial information are consistent with those applied in the annual consolidated financial statements for the year ended December 31, 2021[73]
华鼎控股(03398) - 2022 - 中期财报