Financial Performance - For the six months ended June 30, 2022, the group's revenue was approximately HKD 654 million, an increase of about 0.2% compared to the previous period[9]. - The gross profit for the same period was approximately HKD 204 million, a decrease of about 5.4% from the previous period, resulting in a gross margin decline from approximately 33.0% to 31.2%[9]. - The loss attributable to equity holders for the period was approximately HKD 26 million, compared to a slight profit of HKD 41,000 in the previous period[9]. - The loss per share for the period was approximately HKD 0.66, compared to earnings of HKD 0.01 per share in the previous period[9]. - Operating loss for the six months was approximately HKD 26 million, compared to an operating profit of HKD 940,000 in the previous period[11]. - The total sales cost for the six months was approximately HKD 450 million, compared to HKD 437 million in the previous period[11]. - The total comprehensive loss attributable to the company's owners for the six months ended June 30, 2022, was HKD (2,337) thousand, a significant decrease from a profit of HKD 1,678 thousand in the same period of 2021[13]. - The company's basic and diluted loss per share for the six months ended June 30, 2022, was HKD (0.66), compared to HKD 0.01 in the same period of 2021, reflecting a deterioration in performance[13]. - The net loss for the six months ended June 30, 2022, was HKD 2,629 thousand, compared to a profit of HKD 41 thousand in the same period of 2021[40]. Revenue Breakdown - Revenue from the United States for the six months ended June 30, 2022, was HKD 29,718 thousand, down 42.0% from HKD 51,215 thousand in the same period of 2021[49]. - Revenue from China increased to HKD 11,769 thousand for the six months ended June 30, 2022, compared to HKD 4,070 thousand in the same period of 2021[49]. - Sales of beauty products decreased to HKD 40,745 thousand for the six months ended June 30, 2022, down 26.0% from HKD 55,037 thousand in the same period of 2021[34]. - Sales of cosmetic bags increased significantly to HKD 24,657 thousand for the six months ended June 30, 2022, up 141.5% from HKD 10,237 thousand in the same period of 2021[34]. Expenses and Costs - Administrative expenses for the period were approximately HKD 16 million, an increase from HKD 15 million in the previous period[11]. - The total employee cost, including directors' remuneration, was approximately HKD 12.4 million, an increase from approximately HKD 10.4 million in the previous period, primarily due to salary increases[107]. - Sales and distribution expenses remained stable at approximately HKD 6.3 million for both periods[91]. Cash Flow and Assets - The company's cash and cash equivalents decreased to HKD 111,241 thousand as of June 30, 2022, down from HKD 136,020 thousand at the end of the previous year[23]. - Operating cash flow for the six months ended June 30, 2022, was a net cash outflow of HKD (26,125) thousand, compared to a net cash inflow of HKD 17,570 thousand in the same period of 2021[23]. - Total assets as of June 30, 2022, amounted to HKD 270,244 thousand, a slight increase from HKD 269,223 thousand as of December 31, 2021[16]. - The company's non-current assets totaled HKD 59,906 thousand as of June 30, 2022, down from HKD 64,318 thousand as of December 31, 2021[16]. Liabilities and Equity - The total liabilities as of June 30, 2022, were HKD 42,695 thousand, an increase from HKD 39,337 thousand as of December 31, 2021[18]. - The total trade payables increased to HKD 20,072,000 as of June 30, 2022, from HKD 6,566,000 as of December 31, 2021, a significant increase of 205%[70]. - The current ratio as of June 30, 2022, was approximately 6.6 times, compared to about 7.5 times as of December 31, 2021[89]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial information for the six months ending June 30, 2022[148]. - The company has complied with all provisions of the corporate governance code as of June 30, 2022, except for the absence of independent non-executive directors at the annual general meeting[141]. - The company has adopted a code of conduct regarding securities trading for directors and employees, ensuring compliance with GEM listing rules[143]. Future Plans and Risks - The group has no significant future investment or capital asset plans as of June 30, 2022[101]. - The group faces various risks, including economic challenges due to the pandemic, which may negatively impact sales and profitability[114]. - The group plans to utilize the remaining proceeds for the expansion of the Hong Kong headquarters within the next twelve months[113].
德宝集团控股(08436) - 2022 - 中期财报