Revenue and Profitability - Revenue for the six months ended June 30, 2023, was HK$546.606 million, a slight decrease of 0.22% compared to HK$547.825 million in the same period of 2022[10]. - Gross profit increased to HK$76.585 million, representing a 4.1% increase from HK$73.513 million year-on-year[10]. - Operating profit decreased significantly to HK$4.470 million, down 51.8% from HK$9.266 million in the previous year[10]. - The loss attributable to equity holders of the Company for the period was HK$1.552 million, compared to a profit of HK$3.504 million in the previous year[10]. - Total comprehensive loss for the period attributable to equity holders was HK$3.404 million, contrasting with a total comprehensive income of HK$1.450 million in the same period of 2022[10]. - The company reported a comprehensive loss of HK$3,404,000 for the six months ended June 30, 2023, compared to a profit of HK$1,450,000 for the same period in 2022[20]. - Basic and diluted loss per share for the period was HK$0.0155, a decline from earnings of HK$0.0350 per share in the previous year[89]. - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2023, following the approval of a final dividend of HK$5,000,000 for the year ended December 31, 2022[84]. Financial Position - Total assets as of June 30, 2023, amounted to HK$913.941 million, down from HK$977.516 million at the end of 2022, reflecting a decrease of 6.5%[13]. - Current assets decreased to HK$745.958 million from HK$866.773 million, a decline of 13.9%[13]. - Non-current assets increased to HK$167.983 million, up from HK$110.743 million, marking a significant increase of 51.6%[13]. - Total equity attributable to equity holders decreased to HK$147.631 million from HK$156.035 million, a decline of 5.7%[13]. - As of June 30, 2023, total liabilities decreased to HK$766,310,000 from HK$821,481,000 as of December 31, 2022, representing a reduction of approximately 6.7%[15]. - Current liabilities decreased to HK$688,283,000 from HK$794,879,000, indicating a decline of about 13.4%[15]. - Total equity as of June 30, 2023, was HK$147,631,000, down from HK$156,035,000 at the start of the year, a decrease of approximately 5.5%[20]. - Deferred tax liabilities decreased to HK$1,335,000 from HK$1,615,000, a reduction of about 17.4%[15]. Cash Flow and Financing - Net cash generated from operating activities decreased to HK$29,006,000 in 2023 from HK$53,404,000 in 2022, representing a decline of approximately 45.6%[22]. - Cash flows from investing activities showed a net inflow of HK$1,288,000 in 2023, a significant recovery from a net outflow of HK$27,307,000 in 2022[22]. - Proceeds from bank borrowings increased to HK$387,500,000 in 2023 compared to HK$376,476,000 in 2022, reflecting a growth of about 3.1%[22]. - Total repayments of bank borrowings rose to HK$425,830,000 in 2023 from HK$381,486,000 in 2022, indicating an increase of approximately 11.6%[22]. - The net cash used in financing activities was HK$62,848,000 in 2023, compared to HK$23,111,000 in 2022, marking a significant increase in cash outflow[22]. - Cash and cash equivalents at the end of the period decreased to HK$179,435,000 in 2023 from HK$209,489,000 in 2022, a decline of about 14.3%[22]. - Cash and bank balances were reported at HK$136,256,000 in 2023, down from HK$209,489,000 in 2022, reflecting a decrease of approximately 34.9%[22]. - The net finance costs rose to HK$6.880 million, compared to HK$4.062 million in the same period last year, indicating a 69.5% increase[10]. Revenue by Customer and Region - For the six months ended June 30, 2023, revenue from Customer A was HK$80,946,000, an increase of 21.9% from HK$66,417,000 in the same period of 2022[51]. - Revenue from Customer B decreased by 13.8% to HK$56,425,000 in 2023 from HK$65,442,000 in 2022[51]. - Total revenue for the Group from the United States was HK$197,802,000, up 2.3% from HK$192,448,000 in 2022[56]. - Revenue from the Philippines decreased by 14.3% to HK$86,450,000 in 2023 from HK$100,874,000 in 2022[56]. - The Group's revenue from Malaysia significantly increased to HK$65,037,000 in 2023 from HK$6,168,000 in 2022, marking a substantial growth[56]. - The Group's revenue from Switzerland rose to HK$34,628,000 in 2023, up from HK$23,433,000 in 2022, indicating a growth of 47.8%[56]. Expenses and Cost Management - Total expenses, including cost of sales, selling and distribution expenses, and administrative expenses, were HK$547,926,000, slightly up by 0.3% from HK$545,150,000 in 2022[68]. - Selling, distribution, and administrative expenses rose to approximately HK$77.9 million, an increase of approximately HK$7.1 million, primarily due to a one-off severance payment and increased marketing efforts[156]. - Raw materials used amounted to HK$393,448,000, representing an increase of 3.1% from HK$378,669,000 in the previous year[68]. Employee and Operational Metrics - As of June 30, 2023, the Group employed approximately 1,720 employees, an increase from 1,700 employees as of December 31, 2022[192][196]. - Total staff costs for the six months ended June 30, 2023, amounted to HK$101.4 million, a decrease from HK$230.2 million for the same period in 2022[192][196]. Economic Outlook and Strategic Initiatives - The outlook for 2024 indicates high uncertainty in the global economy, with potential challenges from ongoing geopolitical tensions and supply chain disruptions[158]. - The global economic outlook remains uncertain, with challenges from US-China tensions and the Russian-Ukraine War impacting future performance[165]. - The Group aims to enhance efficiency and build a diversified international customer base to mitigate potential customer retractions during economic downturns[166].
丽年国际(09918) - 2023 - 中期财报