Financial Performance - For the six months ended December 31, 2022, the company's revenue decreased by approximately 3.5% to HKD 52.5 million from HKD 54.4 million in the same period last year[13] - Net profit and total comprehensive income for the period was HKD 12.1 million, a decrease of 1.1% compared to HKD 12.25 million in the previous year[13] - The company reported earnings per share of HKD 1.51, down 1.9% from HKD 1.54 in the prior year[13] - Profit attributable to owners of the company decreased by approximately HKD 0.2 million or about 1.1% to approximately HKD 12.1 million for the six months ended December 31, 2022[19] - The company reported a net profit of HKD 12,048,000 for the six months, down from HKD 12,280,000, reflecting a decrease of 1.9% year-on-year[52] - The group reported a pre-tax profit of HKD 12,048,000 for the six months ended December 31, 2022, compared to HKD 12,280,000 in the same period of 2021[90] Cost and Expenses - Gross profit increased by approximately 1.4% to HKD 21.6 million, attributed to a decrease in procurement costs due to the depreciation of the TWD against the HKD[15] - The sales cost decreased by approximately 6.7% to HKD 30.9 million, consistent with the decline in revenue[15] - Administrative expenses rose by approximately HKD 1.4 million or about 16.6% to approximately HKD 10.1 million for the six months ended December 31, 2022, mainly due to increases in professional fees, director remuneration, and employee costs[18] - The total employee costs for the six months ended December 31, 2022, were HKD 13,941,000, compared to HKD 11,865,000 in the previous year, reflecting an increase of approximately 17.5%[84] - The depreciation of property, plant, and equipment increased to HKD 1,874,000 in 2022 from HKD 1,647,000 in 2021, showing a rise of approximately 13.8%[60] Cash Flow and Liquidity - As of December 31, 2022, the group had cash and bank balances of approximately HKD 88.5 million, up from approximately HKD 79.4 million as of June 30, 2022, with a current ratio of approximately 7.0 times[20] - Cash and cash equivalents rose to HKD 88,483,000 from HKD 79,419,000, showing improved liquidity position[54] - The operating cash flow for the six months ended December 31, 2022, was HKD 20,710,000, compared to HKD 15,166,000 for the same period in 2021, indicating an increase of about 36.5%[60] - The net cash from operating activities for the six months ended December 31, 2022, was HKD 13,703,000, up from HKD 12,677,000 in 2021, reflecting a growth of approximately 8.1%[63] Business Strategy and Market Outlook - The company aims to enhance its position as a leading provider of mechanical rebar processing and connection services in Hong Kong[12] - The company anticipates that the reopening of quarantine-free travel between mainland China and Hong Kong will provide a strong boost to business[9] - The company operates a single business segment focused on rebar processing and connection services in Hong Kong[14] - The company will continue to monitor business opportunities and strengthen its market competitiveness to enhance profitability and shareholder value[11] Research and Development - The company plans to allocate approximately HKD 2.4 million for research and development to enhance the quality and cost-effectiveness of its existing mechanical rebar services[37] - The company is actively seeking suitable R&D opportunities to improve service quality and reduce indirect costs and maintenance time[44] - The company is exploring methods to enhance automation capabilities, including the development of new generation self-developed CNC bending machines and CNC threading machines[37] - The company aims to develop prototypes for two next-generation machines, focusing on reliability, efficiency, and other metrics, with an allocation of HKD 0.9 million for this purpose[37] Shareholder Information - The board does not recommend the payment of dividends for the period[24] - The group did not declare or propose any dividends for the six months ended December 31, 2022, consistent with the previous year[91] - As of December 31, 2022, Mr. Guan Yan De holds 251,743,415 shares, representing 31.5% of the company's issued voting shares[128] - As of December 31, 2022, Mr. Lin Shu Ru holds 113,520,732 shares, representing 14.2% of the company's issued voting shares[128] - As of December 31, 2022, Mr. Yang Tian Li holds 64,390,244 shares, representing 8.0% of the company's issued voting shares[128] Compliance and Governance - The Audit Committee, consisting of three independent non-executive directors, reviewed the unaudited financial performance for the period and confirmed adherence to applicable accounting standards[143] - The company has adopted a code of conduct for securities trading by directors and employees, ensuring compliance with GEM Listing Rules[146] - The company has confirmed compliance with non-competition commitments for the fiscal year ending June 30, 2022, by key individuals including Jianxin Creative Limited and Mr. Yang Tianli[140]
人和科技(08140) - 2023 - 中期财报