Financial Performance - The revenue for the six months ended June 30, 2023, was approximately HKD 127.12 million, a decrease of about 5.61% compared to HKD 134.67 million for the same period in 2022[10] - The profit attributable to owners of the company for the reporting period was approximately HKD 1.32 million, down from HKD 3.87 million in the same period of 2022[10] - Basic earnings per share for the reporting period were approximately HKD 0.80 cents, compared to HKD 2.58 cents for the same period in 2022[10] - The gross profit margin for the six months ended June 30, 2023, was approximately 27.4%, down from 26.5% in the same period of 2022[11] - The company reported a net loss of HKD 1,554,000 for the six months ended June 30, 2023, compared to a net profit of HKD 3,578,000 in the same period of 2022[16] - The sales of finished watches amounted to HKD 91.91 million for the six months ended June 30, 2023, down from HKD 109.38 million in 2022, representing a decline of approximately 16%[26] - The group recorded a gross profit of approximately HKD 34.81 million for the six months ended June 30, 2023, a decrease of about 2.68% compared to the same period in 2022, primarily due to a decline in sales[49] Assets and Liabilities - Non-current assets as of June 30, 2023, totaled approximately HKD 71.38 million, a decrease from HKD 75.95 million as of December 31, 2022[12] - Current assets decreased to approximately HKD 166.34 million from HKD 169.71 million as of December 31, 2022[12] - Trade receivables increased to approximately HKD 37.35 million from HKD 22.28 million as of December 31, 2022[12] - Trade payables decreased to approximately HKD 59.95 million from HKD 93.68 million as of December 31, 2022[12] - The company reported a net current asset of approximately HKD 20.80 million, an increase from HKD 18.84 million as of December 31, 2022[12] - The company's net assets as of June 30, 2023, were HKD 37,108,000, down from HKD 38,662,000 as of December 31, 2022, representing a decrease of 4.0%[14] - The company's equity attributable to owners decreased to HKD 37,906,000 as of June 30, 2023, from HKD 39,377,000 as of December 31, 2022, reflecting a decline of 3.7%[14] Cash Flow - Operating cash flow for the first half of 2023 was a net cash outflow of HKD 22,557,000, compared to a net cash inflow of HKD 2,228,000 in the same period of 2022[18] - Cash and cash equivalents at the end of June 2023 were HKD 11,358,000, a decrease from HKD 13,479,000 at the end of June 2022[18] - Financing activities generated a net cash inflow of HKD 23,546,000 in the first half of 2023, compared to HKD 8,961,000 in the same period of 2022[18] - As of June 30, 2023, the group's cash and bank balances were approximately HKD 11.36 million, down from HKD 13.48 million as of June 30, 2022[52] Market Performance - Revenue from the Indian market increased significantly to HKD 26,798,000 in the first half of 2023, up 50.5% from HKD 17,807,000 in the same period of 2022[25] - The company experienced a significant decline in revenue from Hong Kong, which fell to HKD 9,689,000 in the first half of 2023, down 39.0% from HKD 15,959,000 in the same period of 2022[25] Expenses and Costs - Administrative expenses decreased by approximately HKD 0.45 million or about 1.61% to approximately HKD 27.46 million during the reporting period, mainly due to reduced advertising and promotion costs[49] - Financial costs increased by approximately HKD 1.59 million or about 56.99% to approximately HKD 4.38 million, primarily due to rising interest rates from banks[49] - The company incurred depreciation expenses of HKD 2.65 million for property, plant, and equipment for the six months ended June 30, 2023, slightly down from HKD 2.76 million in 2022[27] Corporate Governance and Strategy - The company is focused on enhancing operational efficiency and exploring new market opportunities to drive future growth[10] - The company has not reported any significant new product developments or market expansions during this period[23] - The group will continue to focus on developing core businesses and improving product design to maximize long-term returns for shareholders[47] - The board did not declare an interim dividend for the reporting period, compared to zero in 2022[50] - The company has established an audit committee in accordance with GEM Listing Rules, responsible for reviewing financial statements and overseeing internal control procedures[76] Miscellaneous - The company has a stock option plan approved on June 20, 2018, valid for 10 years, aimed at rewarding contributions and attracting high-quality employees[70] - The total number of shares involved in stock options granted cannot exceed 10% of the issued shares at any time without prior shareholder approval[70] - The interim report contains forward-looking statements based on various assumptions regarding the company's future business strategies and operating environment[78] - The group has no capital commitments as of June 30, 2023[54] - The group has no significant contingent liabilities as of June 30, 2023[60] - No significant investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the reporting period[68] - No major investment or capital asset plans for the upcoming year beyond those disclosed in the interim report[69]
恒伟集团控股(08219) - 2023 - 中期财报