Financial Performance - The company recorded revenue of approximately HKD 102.9 million for the six months ended June 30, 2022, compared to HKD 84.1 million for the same period in 2021, representing a year-on-year increase of approximately 22.5%[9] - The gross profit margin decreased from 13.5% for the six months ended June 30, 2021, to approximately 12.0% for the same period in 2022, a decline of about 1.5 percentage points[9] - The company reported a loss attributable to owners of approximately HKD 3.7 million for the six months ended June 30, 2022, compared to a profit of HKD 2.6 million for the same period in 2021[9] - The net loss margin for the six months ended June 30, 2022, was approximately 3.6%, a decrease of about 6.7 percentage points from the net profit margin of 3.1% for the same period in 2021[9] - Basic loss per share for the six months ended June 30, 2022, was approximately HKD 0.014, compared to earnings of HKD 0.010 per share for the same period in 2021[9] - The total comprehensive expense for the six months ended June 30, 2022, was HKD 19.5 million, compared to HKD 21.1 million for the same period in 2021[12] - The company reported a segment profit of HKD 6,629 thousand from cable sales, while fiber optic sales incurred a segment loss of HKD 7,278 thousand, resulting in an overall segment loss of HKD 649 thousand[50] - The company reported interest income of HKD 2 thousand and unallocated corporate expenses of HKD 1,774 thousand for the six months ended June 30, 2022[50] Income and Expenses - Other income increased significantly to HKD 3.6 million for the six months ended June 30, 2022, compared to HKD 0.9 million for the same period in 2021[12] - The company incurred financing costs of HKD 1.3 million for the six months ended June 30, 2022, compared to HKD 0.6 million for the same period in 2021[12] - The company incurred a loss of HKD 3,663 thousand during the period, compared to a profit of HKD 2,594 thousand in the previous period[24] - Selling and distribution expenses increased by approximately 175.0% from about HKD 1.2 million to approximately HKD 3.3 million, mainly due to increased transportation and export costs[132] - Financing costs rose from approximately HKD 617,000 to about HKD 1.336 million, primarily due to increased interest on bank borrowings[136] - Tax expenses decreased by approximately 125.0% from about HKD 843,000 to a tax credit of approximately HKD 211,000, mainly due to deferred tax assets from significant foreign exchange losses[137] Assets and Liabilities - As of June 30, 2022, total assets amounted to HKD 351,299 thousand, a decrease from HKD 380,642 thousand as of December 31, 2021, representing a decline of approximately 7.7%[17] - The company's net asset value decreased to HKD 575,847 thousand from HKD 595,365 thousand, reflecting a reduction of about 3.0%[18] - The total liabilities decreased to HKD 84,431 thousand from HKD 122,429 thousand, indicating a reduction of approximately 30.9%[17] - The company’s total equity decreased by approximately 3.3% from HKD 595,365 thousand to HKD 575,847 thousand[18] - Total receivables as of June 30, 2022, amounted to HKD 168,861 thousand, a decrease of 7.4% from HKD 182,598 thousand as of December 31, 2021[83] - Accounts payable decreased significantly to HKD 21,948 thousand as of June 30, 2022, from HKD 37,472 thousand as of June 30, 2021, representing a decline of 41.5%[87] - The company’s non-current assets totaled HKD 198,876 thousand as of June 30, 2022, down from HKD 211,550 thousand as of December 31, 2021, reflecting a decrease of 5.9%[12] - The company’s current assets increased to HKD 73,490 thousand as of June 30, 2022, from HKD 70,933 thousand as of December 31, 2021, showing a growth of 3.5%[12] Cash Flow - The cash and cash equivalents at the end of the period were HKD 15,079 thousand, showing an increase of HKD 1,566 thousand compared to the beginning cash balance of HKD 14,000 thousand[31] - The company reported a net cash inflow from operating activities of HKD 17,206 thousand for the six months ended June 30, 2022[31] - The financing activities resulted in a net cash outflow of HKD 18,074 thousand, primarily due to repayment of bank loans[31] - The total cash outflow for the six months ended June 30, 2022, was HKD 8,635,000, an increase from HKD 6,897,000 in the previous year[75] Market and Sales - For the six months ended June 30, 2022, total revenue reached HKD 102,916 thousand, with fiber optic sales contributing HKD 16,978 thousand and cable sales contributing HKD 85,938 thousand[37] - The total revenue for the same period in 2021 was HKD 84,057 thousand, indicating a year-on-year increase of approximately 22.3%[54] - Sales of optical cables increased by approximately 141.7% to about HKD 80.2 million, while sales of optical fibers decreased by approximately 36.0% to about HKD 22.6 million[115] - In Thailand, sales revenue from optical cables increased from approximately HKD 29.1 million to about HKD 47.4 million due to the initiation of 5G network construction[119] - The company plans to seek further sales opportunities in the optical fiber and cable industry and enhance cost control capabilities in response to rising raw material prices[123] Accounting and Compliance - The company expects to continue leveraging its existing accounting policies without significant changes, as no new accounting standards will materially impact the financial statements[36] - The company has not applied any new accounting standards that have been issued but are not yet effective, indicating a stable accounting environment[36] - The company’s revenue recognition is based on the transfer of control of goods to customers at the point of delivery, with credit terms ranging from 0 to 365 days[46] - The company anticipates that the adoption of new or revised standards will not have a significant impact on the unaudited consolidated financial statements[36] Risk Management - The company has established foreign exchange risk management policies to mitigate risks associated with currency fluctuations, particularly with USD and RMB against THB and HKD[152] - Credit risk has been significantly reduced due to the management's monitoring of credit limits and collection procedures for overdue receivables[156] - The company aims to maintain available credit lines to ensure financial flexibility[157] - The company has not utilized any derivative contracts to hedge against interest rate risks, maintaining a balanced mix of fixed and floating rate borrowings[153]
高科桥(09963) - 2022 Q2 - 季度财报