Financial Performance - Revenue for the six months ended June 30, 2022, was HKD 57,857,000, a decrease of 26.7% compared to HKD 78,867,000 for the same period in 2021[3] - Gross profit for the same period was HKD 15,361,000, down 55.7% from HKD 34,714,000 in 2021[3] - Net profit for the six months ended June 30, 2022, was HKD 5,074,000, a decline of 78.3% compared to HKD 23,385,000 in 2021[5] - Total comprehensive income for the period was HKD 6,379,000, down 75.5% from HKD 26,006,000 in the previous year[5] - Basic and diluted earnings per share for the period were HKD 0.91, compared to HKD 2.87 in 2021, reflecting a decrease of 68.3%[5] - The company reported a significant decrease in other income, which fell to HKD 621,000 from HKD 7,448,000 in the previous year, a decline of 91.7%[3] - The group reported a net profit of MYR 5.1 million for the period, a decrease of MYR 18.3 million or 78.2% compared to the same period in 2021, primarily due to reduced contributions from the production department and losses from the retail sector[125] Assets and Liabilities - Non-current assets as of June 30, 2022, totaled HKD 39,803,000, an increase from HKD 36,565,000 as of December 31, 2021[8] - Current assets amounted to HKD 100,254,000, compared to HKD 98,221,000 at the end of 2021, indicating a slight increase[8] - Total liabilities decreased to HKD 20,601,000 from HKD 22,957,000 at the end of 2021, showing a reduction of 10.4%[11] - The company's equity increased to HKD 105,631,000 as of June 30, 2022, up from HKD 99,252,000 at the end of 2021[11] - Trade receivables amounted to 25,406 thousand MYR as of June 30, 2022, with a provision for impairment loss of 2,971 thousand MYR[83] - The company’s bank borrowings as of June 30, 2022, totaled 8,979 thousand MYR, a slight decrease from 9,186 thousand MYR as of December 31, 2021[92] Cash Flow - The net cash used in operating activities was (2,585) thousand MYR for the six months ended June 30, 2022, compared to a net cash inflow of 5,645 thousand MYR in the prior year[29] - The company experienced a net cash outflow from investing activities of (6,907) thousand MYR, which is significantly higher than (2,828) thousand MYR in the previous year[29] - The financing activities generated a net cash inflow of 1,198 thousand MYR, contrasting with a net cash outflow of (3,282) thousand MYR in the same period last year[29] - The cash and cash equivalents at the end of the period were 19,888 thousand MYR, a decrease from 27,832 thousand MYR at the beginning of the period[29] - Net cash available as of June 30, 2022, was approximately MYR 19.9 million, a decrease from MYR 27.8 million as of December 31, 2021[127] Revenue Breakdown - The company reported a total revenue of 99,252 thousand MYR for the six months ended June 30, 2022, compared to 30,255 thousand MYR in the same period of the previous year, representing an increase of 227%[26] - Revenue from the production segment for the six months ended June 30, 2022, was approximately 57.7 million MYR, down 5.4% from 61.0 million MYR in the same period of 2021[105] - Revenue from elastic textiles for the period was approximately MYR 18.9 million, an increase of MYR 4.0 million or 26.8% compared to the same period in 2021, primarily due to increased sales from customers in the Asia-Pacific and North America regions[106] - Revenue from webbing for the period was approximately MYR 24.1 million, a decrease of MYR 3.9 million or 13.9% compared to the same period in 2021, mainly due to reduced sales of furniture webbing products from the Asia-Pacific and North America regions[109] - Revenue from other products for the period was approximately MYR 14.7 million, a decrease of MYR 3.4 million or 18.8% compared to the same period in 2021, primarily due to reduced revenue from polyvinyl chloride-related products and adhesive tape products[110] Operational Insights - The company has two reportable segments: Production and Retail, focusing on manufacturing and selling elastic textiles and related products[39] - The company employed 520 staff as of June 30, 2022, with employee costs around MYR 13.9 million, compared to approximately MYR 14.4 million in the previous year[139] - The company recorded a loss from the sale of subsidiaries amounting to 4,975 thousand MYR, impacting overall profitability[62] - The company’s depreciation and amortization expenses totaled 1,017 thousand MYR for the period, reflecting ongoing investment in asset maintenance[47] Future Outlook and Strategy - The company plans to focus on its existing business and conserve resources amid global economic uncertainties, including the sale of its newly developed securities brokerage business for HKD 8.5 million (approximately MYR 4.5 million)[148] - Future economic outlook indicates a contraction in the global economy in the second half of the year due to tightening financial conditions and geopolitical tensions[166] - Supply chain disruptions and rising material costs remain significant challenges for manufacturing operations, impacting competitiveness[166] - The company is reassessing market demand and pricing strategies to adjust its cost structure amid global economic uncertainties[166] Risk Management - The company has established a risk management committee to monitor and assess international sanction risks, consisting of two independent non-executive directors and one executive director[169] - During the reporting period, the risk management committee did not identify any sanction risks faced by the company[170] - The company faces foreign exchange risk primarily from USD revenues, with measures in place to hedge against potential currency fluctuations[143] Shareholder Information - The company did not recommend any dividend payment for the period, consistent with the previous year[71] - The company did not declare any interim dividends for the period, consistent with the previous year where no dividends were declared[132] - As of June 30, 2022, the company had 560 million shares issued, with the percentage of shareholdings calculated based on this figure[189]
飞霓控股(08480) - 2022 - 中期财报