Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 64,347,000, an increase of 4.5% compared to HKD 61,514,000 for the same period in 2021[16] - Gross profit for the same period was HKD 3,411,000, down 45.7% from HKD 6,288,000 in 2021[16] - The company reported a loss before tax of HKD 1,267,000 for the six months ended June 30, 2022, compared to a profit of HKD 942,000 in 2021[16] - For the six months ended June 30, 2022, the company reported total revenue of HKD 64,347,000, a decrease from HKD 66,288,000 in the same period of 2021, representing a decline of approximately 2.9%[48] - The gross profit for the six months ended June 30, 2022, was HKD 3,411,000, down from HKD 6,288,000 in the previous year, indicating a decrease of about 45.7%[48] - The company reported a basic loss per share of HKD (1.14), compared to earnings of HKD 0.67 in the same period of 2021[16] - The group reported a loss of HKD 1.1 million for the six months ended June 30, 2022, compared to a profit of HKD 0.7 million for the same period in 2021, primarily due to a decrease in gross profit[115] Assets and Liabilities - Total assets as of June 30, 2022, were HKD 80,905,000, an increase from HKD 73,931,000 as of December 31, 2021[19] - Net assets amounted to HKD 47,714,000 as of June 30, 2022, compared to HKD 48,857,000 at the end of 2021[19] - The company’s total liabilities as of June 30, 2022, amounted to HKD 57,410,000[55] - The total liabilities as of June 30, 2022, were HKD 64,470,000, compared to HKD 64,470,000 as of December 31, 2021, indicating no change[58] - Trade receivables as of June 30, 2022, totaled HKD 70.935 million, an increase from HKD 62.525 million as of December 31, 2021[94] - Trade payables as of June 30, 2022, amounted to HKD 8.270 million, down from HKD 14.971 million as of December 31, 2021[97] - As of June 30, 2022, the group's total equity was HKD 47.7 million, down from HKD 48.9 million as of December 31, 2021, with cash and cash equivalents at HKD 1.3 million[129] Cash Flow - The company experienced a net cash outflow from operating activities of HKD 29,000 for the six months ended June 30, 2022, compared to a net outflow of HKD 5,624,000 in the same period of 2021[26] - As of June 30, 2022, cash and cash equivalents were HKD 1,347,000, a slight decrease from HKD 1,714,000 at the end of 2021[19] - The company’s financing activities resulted in a net cash outflow of HKD 338,000 for the six months ended June 30, 2022, compared to a net inflow of HKD 1,863,000 in the same period of 2021[26] Operational Focus and Strategy - The company plans to focus on market expansion and new product development in the upcoming quarters[16] - The company has extended its business into the supply of construction materials to diversify its revenue sources, primarily serving clients in Cambodia[102] - The group is exploring new business opportunities in the ASEAN construction and related materials agency services to diversify revenue sources[125] - The group has implemented cost control measures to reduce operating costs in response to ongoing business declines[125] Customer and Revenue Breakdown - Revenue from clothing products for the six months ended June 30, 2022, was HKD 64,092,000, while revenue from building materials was HKD 255,000[48] - Revenue from clothing products for the six months ended June 30, 2022, was HKD 64,092,000, up from HKD 60,541,000 for the same period in 2021, reflecting a growth of about 8.5%[65] - Revenue from Macau decreased to HKD 18,128,000 for the six months ended June 30, 2022, down from HKD 30,380,000 in the previous year, a decline of approximately 40.5%[65] - Major customers contributing over 10% of total revenue included Customer A with HKD 38,895,000 and Customer B with HKD 18,127,000 for the six months ended June 30, 2022[72] Employee Costs - The total employee costs for the six months ended June 30, 2022, were HKD 2,029,000, an increase from HKD 1,814,000 for the same period in 2021, representing a rise of about 11.8%[79] - Employee costs for the six months ended June 30, 2022, were approximately HKD 2.0 million, an increase from HKD 1.8 million for the same period in 2021[133] - Sales and distribution expenses increased from HKD 0.5 million to HKD 0.8 million, primarily due to higher employee costs related to sales and distribution[111] Governance and Compliance - The company has complied with the corporate governance code as per GEM listing rules during the reporting period[153] - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ending June 30, 2022, ensuring compliance with applicable accounting standards[160] - There are no known conflicts of interest among directors, controlling shareholders, and their close associates with any competing businesses as of June 30, 2022[151] Miscellaneous - The company did not recommend any dividend for the six months ended June 30, 2022, consistent with the previous year[80] - The group has no significant outstanding balances with related parties as of June 30, 2022[99] - The group has no significant investments or contingent liabilities as of June 30, 2022[120][121] - The company has not engaged in any arrangements that would allow directors or senior management to acquire shares or debt securities for profit during the six months ending June 30, 2022[150] - No share options have been granted, lapsed, exercised, or cancelled under the share option scheme since its adoption on April 16, 2018[159] - Forward-looking statements in the report are subject to risks and uncertainties that may cause actual results to differ significantly from those projected[162]
细叶榕科技(08107) - 2022 - 中期财报