Financial Performance - For the six months ended June 30, 2022, the group recorded revenue of approximately HKD 48,372,000, a decrease of about 25.2% compared to HKD 64,668,000 for the same period in 2021[7]. - Gross profit for the same period was approximately HKD 14,126,000, down 19.8% from HKD 17,611,000 in the previous year[7]. - The group reported a net profit of approximately HKD 2,416,000 for the six months ended June 30, 2022, compared to HKD 6,190,000 for the same period in 2021[7]. - The total comprehensive income for the period was a loss of HKD 4,681,000, compared to a gain of HKD 8,461,000 in the previous year[10]. - Basic and diluted earnings per share for the six months ended June 30, 2022, were HKD 0.50, down from HKD 1.29 in the same period of 2021[10]. - The company reported a total comprehensive income of HKD 2,416 thousand for the six months ended June 30, 2022, down from HKD 6,190 thousand for the same period in 2021, indicating a decline of about 61%[14]. - The company's profit attributable to owners decreased from HKD 6,190,000 for the six months ended June 30, 2021, to approximately HKD 2,416,000 for the six months ended June 30, 2022[72]. Revenue and Sales - The decline in revenue was primarily due to a significant reduction in procurement orders from major customers in East and North China, caused by COVID-19 restrictions[7]. - Revenue from functional knitted fabrics sales was HKD 39,556,000 for the six months ended June 30, 2022, down 18.4% from HKD 48,499,000 in the same period of 2021[26]. - Total revenue for the six months ended June 30, 2022, was HKD 42,097,000, a decrease of 16.3% compared to HKD 50,348,000 for the same period in 2021[26]. - The company's revenue decreased by approximately HKD 16,296,000 or 25.2% from HKD 64,668,000 for the six months ended June 30, 2021, to HKD 48,372,000 for the six months ended June 30, 2022, primarily due to a significant drop in sales orders from major customers caused by the COVID-19 Omicron variant outbreak[65]. Costs and Expenses - The cost of inventory recognized as an expense was HKD 26,842,000 for the six months ended June 30, 2022, compared to HKD 37,379,000 for the same period in 2021, reflecting a decrease of 28.2%[36]. - Selling and distribution expenses increased by approximately HKD 389,000 or 21.0% from HKD 1,848,000 to HKD 2,237,000, mainly due to salary increases and higher sales and marketing service fees[67]. - Administrative and other expenses decreased by approximately HKD 303,000 or 3.2% from HKD 9,492,000 to HKD 9,189,000, primarily due to reduced depreciation and miscellaneous expenses[69]. - Employee costs, excluding directors' remuneration, amounted to HKD 7,083,000 for the six months ended June 30, 2022, compared to HKD 5,712,000 for the same period in 2021, reflecting an increase of 24.0%[36]. - Employee costs for the six months ended June 30, 2022, totaled approximately HKD 9,326,000, compared to HKD 7,920,000 for the same period in 2021, representing an increase of about 17.6%[85]. Assets and Liabilities - As of June 30, 2022, total assets decreased to HKD 183,192 thousand from HKD 209,347 thousand as of December 31, 2021, representing a decline of approximately 12.5%[12]. - Net current assets as of June 30, 2022, were HKD 117,315 thousand, slightly down from HKD 119,062 thousand as of December 31, 2021, indicating a decrease of about 1.5%[12]. - Cash and cash equivalents decreased to HKD 24,931 thousand as of June 30, 2022, from HKD 26,680 thousand as of June 30, 2021, representing a decline of approximately 6.5%[18]. - The company's non-current assets totaled HKD 29,826 thousand as of June 30, 2022, down from HKD 33,043 thousand as of December 31, 2021, reflecting a decrease of about 9.5%[12]. - Trade receivables increased to HKD 90,955,000 as of June 30, 2022, compared to HKD 65,324,000 as of December 31, 2021, reflecting a growth of 38.5%[41]. - Trade payables rose to HKD 5,301,000 as of June 30, 2022, compared to HKD 3,654,000 as of December 31, 2021, marking an increase of 45.0%[44]. - The company reported total bank borrowings of HKD 18,933,000 as of June 30, 2022, down from HKD 42,808,000 as of December 31, 2021, representing a decrease of 55.7%[48]. Corporate Governance and Compliance - The board of directors did not recommend the payment of a dividend for the six months ended June 30, 2022[8]. - The company did not declare any dividends for the six months ended June 30, 2022, nor for the same period in 2021[49]. - The audit committee, consisting of three independent non-executive directors, reviewed the group's unaudited interim financial information for the six months ended June 30, 2022[98]. - The company adheres to high standards of corporate governance and has complied with all applicable provisions of the corporate governance code as of the report date[102]. - The major shareholder, Cosmic Bliss, holds 360,000,000 shares, representing a 75.00% equity interest in the company[93]. Future Outlook - The company expects higher revenue and operating profit in the second half of the year due to seasonal demand for functional knitted fabrics[58]. - The company continues to monitor the COVID-19 situation closely and plans to respond to market recovery trends as conditions improve[61].
智云国际控股(08521) - 2022 - 中期财报