Financial Performance - The company's revenue for the six months ended June 30, 2023, was HKD 102,551,000, representing a 6.98% increase compared to HKD 95,864,000 in the same period of 2022[13]. - EBITDA decreased by 12.67% to HKD 36,016,000 from HKD 41,240,000 year-on-year[13]. - Net profit for the period fell by 48.65% to HKD 9,802,000, down from HKD 19,090,000 in the previous year[13]. - Revenue from elderly care services rose from approximately HKD 72,381,000 to approximately HKD 77,415,000, marking an increase of about 6.95%[28]. - Revenue generated from the Social Welfare Department's improved purchase plan for rented beds increased from approximately HKD 19,653,000 to approximately HKD 23,639,000, a growth of about 20.28%[29]. - Revenue from personal clients renting beds grew from approximately HKD 50,171,000 to approximately HKD 51,220,000, reflecting an increase of about 2.09%[34]. - The company reported a profit before tax of HKD 11,351,000, down 50.8% from HKD 23,102,000 in the previous year[92]. - The company reported a total comprehensive income of HKD 9,419,000 for the six months ended June 30, 2023, down from HKD 17,420,000 for the same period in 2022, indicating a decline of about 46.0%[99]. - Basic and diluted earnings per share were HKD 2.35, down from HKD 4.36 in the previous year, reflecting a decline of 46.0%[92]. Assets and Liabilities - Cash and cash equivalents increased by 5.12% to HKD 40,463,000, while time deposits decreased significantly by 73.65% to HKD 9,966,000[13]. - The net asset value decreased by 14.30% to HKD 180,953,000 from HKD 211,151,000[13]. - As of June 30, 2023, current assets were approximately HKD 62,008,000, down from approximately HKD 90,530,000 at the end of the previous year[44]. - Total non-current assets as of June 30, 2023, amounted to HKD 228,857,000, a decrease from HKD 246,861,000 at the end of 2022[95]. - Current liabilities totaled HKD 67,044,000, slightly down from HKD 69,023,000, showing a decrease of 2.9%[95]. - The net current liabilities position was HKD (5,036,000), a significant decline from HKD 21,507,000 in the previous year[95]. - The total liabilities, specifically lease liabilities, decreased from HKD 57,217,000 as of December 31, 2022, to HKD 42,868,000 as of June 30, 2023, a reduction of approximately 25.0%[97]. - Lease liabilities decreased to HKD 83,581,000 as of June 30, 2023, from HKD 99,808,000 at the end of 2022, a reduction of 16.3%[138]. Employee and Operational Costs - Employee costs slightly increased from approximately HKD 47,064,000 to approximately HKD 47,648,000, an increase of about 1.24%[41]. - Total employee costs increased to HKD 46,829,000 in 2023 from HKD 45,507,000 in 2022, reflecting a rise of 2.9%[135]. - The group employed 430 staff as of June 30, 2023, down from 453 staff a year earlier, reflecting a decrease of approximately 5%[61]. - Total remuneration for directors and key management personnel amounted to HKD 5,279,000 for the six months ended June 30, 2023, up from HKD 3,964,000 in the same period of 2022, representing a growth of 33.1%[152]. Corporate Governance and Shareholding - The board emphasizes good corporate governance as essential for effective management and sustainable business growth[68]. - As of June 30, 2023, Mr. Yi holds equity in 258,336,000 shares, representing approximately 64.58% of the company's issued share capital through various controlled entities[86]. - The major shareholder, Ruihua, owns 248,700,000 shares, accounting for 62.18% of the total shares[81]. - The company is controlled by Mr. Yi, Wan Chang, Heng Zhi Development, and Ms. Yi, collectively controlling approximately 64.58% of the issued share capital[86]. - The company has a total of 400,000,000 shares issued as of June 30, 2023[1]. Future Outlook and Strategy - The management team plans to enhance employee training and implement cost control measures to address rising labor costs and property rents[19]. - The demand for elderly care services is expected to continue rising due to Hong Kong's aging population, with the elderly population projected to nearly double by 2040[20]. - The company aims to expand its network of elderly care homes strategically located in Hong Kong to serve more elderly residents[20]. Financial Instruments and Risk Management - The group has not adopted any financial instruments for hedging purposes, limiting exposure to foreign exchange risks[58]. - The company has implemented financial risk management to ensure all payables are settled within the credit period[145]. Other Financial Information - Other income decreased significantly to HKD 5,134,000 from HKD 19,955,000, representing a decline of 74.3% year-on-year[92]. - The company declared an interim dividend of HKD 40,000,000 for the first half of 2023, compared to no interim dividend declared in the same period of 2022[99]. - The company did not declare any dividends for the six months ended June 30, 2023, consistent with the previous year[131]. - The company has not disclosed any new product developments or market expansion strategies in the current report[3].
恒智控股(08405) - 2023 - 中期财报