Financial Performance - For the six months ended June 30, 2023, the revenue was HKD 57,840,000, an increase of 73% compared to HKD 33,368,000 for the same period in 2022[3] - The profit attributable to shareholders for the six months ended June 30, 2023, was HKD 804,000, a turnaround from a loss of HKD 2,029,000 in the same period of 2022[3] - The gross profit for the six months ended June 30, 2023, was HKD 14,503,000, compared to HKD 9,176,000 for the same period in 2022, reflecting a significant improvement[4] - The company reported a pre-tax profit of HKD 1,753,000 for the six months ended June 30, 2023, compared to a pre-tax loss of HKD 1,816,000 in the same period of 2022[4] - The total comprehensive income for the period was HKD 804,000, compared to a total comprehensive loss of HKD 6,921,000 in the same period of 2022[4] - Revenue increased to 57,840,000 HKD, a 73.3% increase from 33,368,000 HKD in the prior year[39] Cash Flow and Assets - The cash and cash equivalents at the end of the period were HKD 72,264,000, down from HKD 97,195,000 at the beginning of the period[11] - The net cash used in operating activities for the six months ended June 30, 2023, was HKD 24,208,000, an improvement from HKD 34,618,000 in the same period of 2022[11] - The total assets less current liabilities as of June 30, 2023, were HKD 110,946,000, a slight decrease from HKD 113,710,000 as of December 31, 2022[6] - Trade receivables rose to 20,540,000 HKD as of June 30, 2023, compared to 13,075,000 HKD at the end of 2022, reflecting a 57.1% increase[32] - Inventory decreased to 84,590,000 HKD as of June 30, 2023, down from 97,097,000 HKD at the end of 2022, indicating a reduction of approximately 12.8%[30] - Trade payables decreased to 28,241,000 HKD as of June 30, 2023, from 31,297,000 HKD at the end of 2022, reflecting a decline of approximately 9.4%[35] Expenses and Costs - Total employee costs increased to HKD 9,326,000 in the first half of 2023, up from HKD 6,196,000 in the same period of 2022, driven by higher salaries and bonuses[26] - Administrative expenses increased by 1,024,000 HKD or 14.4% to 8,123,000 HKD compared to 7,099,000 HKD in the previous period[39] - Sales and distribution costs rose by 460,000 HKD or 12.1% to 4,274,000 HKD from 3,814,000 HKD in the prior year[39] - Operating expenses increased by HKD 1,484,000 or 13.6% to HKD 12,397,000, primarily due to the relaxation of travel restrictions[43] - Research and development costs recognized as expenses were HKD 1,500,000 for the six months ended June 30, 2023, compared to HKD 1,591,000 in the same period of 2022, indicating a focus on innovation[26] Foreign Exchange and Tax - The company experienced a foreign exchange loss of HKD 3,360,000 during the period, compared to a loss of HKD 4,892,000 in the same period of 2022[4] - Tax expenses for the period were HKD 949,000, significantly higher than HKD 213,000 in the previous period, with a tax rate of 25% applicable[44] - The group reported a foreign exchange loss of HKD 3,360,000 due to the depreciation of the RMB against the HKD[44] Corporate Governance and Shareholding - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2023[3] - As of June 30, 2023, Ms. Liu Li holds 600,000,000 shares, representing 74.6% of the company's issued share capital[59] - LinkBest Capital Group Limited and Open Venture Global Limited, both wholly owned by Ms. Liu Li, hold 360,000,000 shares (44.8%) and 240,000,000 shares (29.9%) respectively[62] - The company has adopted all code provisions of the Corporate Governance Code, except for the provision that the roles of Chairman and CEO are held by the same individual, Ms. Liu Li[65] - The audit committee, consisting of three independent non-executive directors, reviewed the interim results for the six months ending June 30, 2023, and confirmed compliance with applicable accounting standards[69] Market and Operational Focus - The company’s major operations are concentrated in China, with all revenue generated from this market[19] - The company has a significant reliance on construction contracts, which accounted for the majority of its revenue during the reporting period[18] - The company’s non-current assets are primarily located in China, aligning with its operational focus[19] - The tobacco machinery industry is expected to maintain stable growth, supported by the strong demand from the China National Tobacco Corporation[52] - The company has not presented segment information as it does not provide regular financial data to its chief operating decision maker[20] Other Income - Other income for the six months ended June 30, 2023, was HKD 335,000, a decrease from HKD 687,000 in the same period of 2022, primarily due to a drop in government subsidies from HKD 593,000 to HKD 57,000[23] - Other income decreased by 352,000 HKD or 51.2% to 335,000 HKD, down from 687,000 HKD in the previous period[41] - The company reported a pre-tax profit of HKD 812,000 for the six months ended June 30, 2023, compared to HKD 825,000 in the same period of 2022, reflecting a slight decline[26] - Other income and loss items amounted to HKD 812,000 for the six months ended June 30, 2023, compared to HKD 825,000 for the same period last year[43] Acquisitions and Contingent Liabilities - There were no major acquisitions or disposals of subsidiaries during the six months ended June 30, 2023[51] - The group has no significant contingent liabilities as of June 30, 2023[49]
仁恒实业控股(03628) - 2023 - 中期财报