Financial Performance - For the six months ended June 30, 2023, the group recorded revenue of approximately HKD 42,755,000, a decrease of about 11.6% compared to HKD 48,372,000 for the same period in 2022[7] - Gross profit for the same period was approximately HKD 10,052,000, down 28.8% from HKD 14,126,000 in the previous year, with a gross margin decline from 29.2% to 23.5%[7] - The group reported a net loss of approximately HKD 2,071,000 for the six months ended June 30, 2023, compared to a net profit of HKD 2,416,000 for the same period in 2022[8] - Other income for the six months was approximately HKD 790,000, down from HKD 1,043,000 in the previous year[10] - The group experienced a significant decrease in pre-tax profit, reporting a loss of HKD 1,610,000 compared to a profit of HKD 2,942,000 in the previous year[10] - The company reported a loss attributable to shareholders of HKD 2,071,000 for the six months ended June 30, 2023, compared to a profit of HKD 2,416,000 in the same period of 2022[36] - The company experienced a total comprehensive loss of HKD 5,804,000 for the six months ended June 30, 2023, compared to a total comprehensive income of HKD 2,416,000 for the same period in 2022[13] Dividend and Shareholder Information - The board of directors did not recommend the payment of a dividend for the six months ended June 30, 2023, consistent with the previous year[8] - The company has no plans to declare dividends for the six months ended June 30, 2023[46] - The company has not issued any potential dilutive ordinary shares, resulting in basic and diluted loss per share being the same at the end of the reporting period[36] - The company’s basic and diluted loss per share for the period was HKD 0.43, compared to earnings of HKD 0.50 per share in the same period last year[10] Operational Costs and Expenses - Selling and distribution expenses were HKD 2,704,000, compared to HKD 2,237,000 in the same period last year, reflecting increased operational costs[10] - Employee costs, excluding directors' remuneration, were HKD 5,828,000 for the six months ended June 30, 2023, down 23.2% from HKD 7,577,000 in the same period of 2022[33] - Administrative and other expenses decreased by approximately HKD 227,000 or 2.5% to about HKD 8,962,000 for the six months ended June 30, 2023[61] - Employee costs for the six months ended June 30, 2023, were approximately HKD 7,562,000, down from HKD 9,326,000 for the same period in 2022, representing a decrease of about 19%[78] Assets and Liabilities - As of June 30, 2023, the company's total assets amounted to HKD 155,435,000, a slight decrease from HKD 157,157,000 as of December 31, 2022[12] - The company's net current assets decreased to HKD 107,343,000 from HKD 111,376,000 year-over-year[12] - The total equity of the company as of June 30, 2023, was HKD 121,946,000, down from HKD 127,750,000 at the end of 2022, reflecting a decrease of approximately 4.5%[12] - The company reported a net cash outflow from operating activities of HKD 25,528,000 for the six months ended June 30, 2023, compared to HKD 36,475,000 for the same period in 2022[17] - The cash and cash equivalents at the end of the period were HKD 56,494,000, significantly up from HKD 24,931,000 at the end of June 2022[17] - The company's inventory increased to HKD 37,597,000 as of June 30, 2023, from HKD 26,478,000 at the end of 2022, indicating a rise of approximately 41.9%[12] - Trade receivables surged to HKD 39,562,000 from HKD 16,477,000, marking an increase of about 140.5% year-over-year[12] - Trade payables increased to HKD 9,690,000 as of June 30, 2023, from HKD 1,633,000 as of December 31, 2022, reflecting an increase of 493.5%[42] Sales and Revenue Breakdown - Revenue from functional knitted fabric sales decreased by 23.5% to HKD 30,210,000 for the three months ended June 30, 2023, compared to HKD 39,556,000 in the same period of 2022[24] - Sales of functional knitted fabrics amounted to HKD 33,887,000, a decrease of HKD 8,407,000 or 19.9% compared to HKD 42,294,000 in 2022[57] - Clothing sales decreased by HKD 1,207,000 or 38.1% to HKD 1,962,000 from HKD 3,169,000 in 2022[57] - Major customers contributing over 10% of total revenue included Customer A with HKD 10,278,000 and Customer B with HKD 10,423,000 for the three months ended June 30, 2023[26] Future Outlook and Strategy - The group aims to secure sales orders from existing customers while actively seeking new customers to expand its customer base[7] - The company aims to enhance its market position in China by improving product variety and increasing marketing efforts[54] - The company continues to focus on research and development to upgrade the quality standards of new functional knitted fabrics[54] - The company expects higher revenue and operating profit in the second half of the year due to seasonal demand for functional knitted fabrics[51] Corporate Governance - The company has established an audit committee consisting of three independent non-executive directors, ensuring compliance with GEM listing rules[90] - The audit committee reviewed the unaudited interim consolidated financial information for the six months ended June 30, 2023, which was approved by the board on August 14, 2023[92] - The company has confirmed compliance with the securities trading code for all directors as of June 30, 2023[93] - The company maintains high standards of corporate governance and has adhered to all applicable code provisions during the reporting period[95]
智云国际控股(08521) - 2023 - 中期财报