Financial Performance - For the six months ended June 30, 2023, total revenue was HKD 485,442,000, an increase of 7.2% compared to HKD 450,691,000 for the same period in 2022[4] - Gross profit for the six months ended June 30, 2023, was HKD 26,783,000, representing a 14.8% increase from HKD 23,478,000 in the previous year[4] - The net profit attributable to owners for the six months ended June 30, 2023, was HKD 7,715,000, down 18.7% from HKD 9,482,000 in the same period of 2022[4] - Basic earnings per share for the six months ended June 30, 2023, was HKD 1.87, a decrease of 21.1% compared to HKD 2.37 for the same period in 2022[4] - The company reported a profit before tax of HKD 9,016,000 for the six months ended June 30, 2023, down from HKD 10,621,000 in the same period of 2022, indicating a slight decline in profitability[21] - The after-tax net profit declined by approximately 18.6% from HKD 9.5 million to HKD 7.7 million, attributed to reduced government subsidies and increased administrative expenses[52] Assets and Liabilities - As of June 30, 2023, total assets amounted to HKD 231,221,000, slightly up from HKD 228,601,000 at the end of 2022[6] - The total assets as of June 30, 2023, amounted to HKD 318,184,000, while total liabilities were HKD 223,247,000, resulting in a net asset position[23] - The total assets as of June 30, 2023, amounted to HKD 321,981,000, with total liabilities at HKD 242,672,000, resulting in a net asset value of HKD 79,309,000[25] - Bank and other borrowings decreased to HKD 45,661,000 as of June 30, 2023, from HKD 58,508,000 as of December 31, 2022, a decline of approximately 22%[40] - The debt-to-equity ratio as of June 30, 2023, was 23.9%, significantly improved from 76.5% on December 31, 2022[58] Cash Flow - For the six months ended June 30, 2023, the net cash generated from operating activities was HKD 28,899,000, compared to a net cash used of HKD 14,011,000 in the same period of 2022, representing a significant improvement[9] - The net cash used in investing activities for the six months ended June 30, 2023, was HKD 2,012,000, a decrease from HKD 29,015,000 in the same period of 2022, indicating improved cash management[9] - The net cash used in financing activities for the six months ended June 30, 2023, was HKD 3,245,000, compared to a net cash generated of HKD 19,379,000 in the same period of 2022, showing a shift in financing strategy[9] - Cash and cash equivalents increased to HKD 44,726,000 as of June 30, 2023, compared to HKD 21,084,000 at the end of 2022[6] Shareholder Activities - The company completed a placement of 80,000,000 shares at a price of HKD 0.1 per share, raising approximately HKD 7,910,000 in net proceeds[8] - The company issued exchangeable bonds amounting to HKD 20 million, with an initial exchange price of HKD 400 per share, representing a premium of 13.4% over the net asset value[43] - A share consolidation was approved, merging every 20 existing shares into one share with a par value of HKD 0.2, effective from August 1, 2023[50] - The company completed a placement of 80,000,000 shares at a price of HKD 0.1 per share, resulting in net proceeds of approximately HKD 7.91 million[78] Operational Insights - The company plans to continue exploring market expansion opportunities and new product development to drive future growth[3] - The company continues to focus on expanding its environmental hygiene services, which include cleaning, pest management, waste management, and gardening services, to enhance market presence[20] - The group aims to secure more tender contracts from currently untapped Hong Kong government departments and private entities, leveraging its substantial resources[55] - The group plans to enhance brand awareness and competitiveness through strengthening its sales and marketing teams in the coming years[57] - The group has a positive outlook on the environmental hygiene services industry, driven by increasing public awareness of hygiene and health[57] Employee and Administrative Costs - Employee costs totaled HKD 392,914,000 for the six months ended June 30, 2023, up from HKD 353,623,000 in the previous year, representing an increase of about 11.1%[27] - The company reported a decrease in administrative expenses to HKD 17,707,000 for the six months ended June 30, 2023, down from HKD 15,869,000 in the previous year[4] - Administrative expenses increased by approximately 11.6% from HKD 15.9 million to HKD 17.7 million, mainly due to a rise in professional fees related to the issuance of exchangeable bonds and new shares[51] Corporate Governance - The company has adopted a code of conduct for directors' securities transactions, adhering to the standards set forth in the GEM Listing Rules[85] - The company has complied with all applicable corporate governance code provisions during the reporting period[86] - The Audit Committee, established on June 24, 2017, is responsible for reviewing the financial statements and internal control systems[89] - The Remuneration Committee, also established on June 24, 2017, provides recommendations on the remuneration policies for all directors and senior management[90] - The Nomination Committee, established on June 24, 2017, is responsible for providing recommendations on the appointment of directors[92]
立高控股(08472) - 2023 - 中期财报