Financial Performance - The company recorded revenue of approximately HKD 103.0 million for the six months ended June 30, 2023, compared to HKD 102.9 million for the same period in 2022, representing a slight increase of 0.1%[6] - Gross profit margin increased from 12.0% for the six months ended June 30, 2022, to approximately 14.8% for the same period in 2023, an increase of about 2.8 percentage points[6] - The profit attributable to owners of the company was approximately HKD 5.0 million for the six months ended June 30, 2023, compared to a loss of approximately HKD 3.7 million for the same period in 2022[6] - Basic earnings per share for the six months ended June 30, 2023, was approximately HKD 0.019, compared to a loss per share of HKD 0.014 for the same period in 2022[6] - For the six months ended June 30, 2023, total revenue was HKD 102,956,000, a significant increase from HKD 102,916,000 for the same period in 2022, reflecting a growth of 0.04%[26] - The segment profit for the cable and related products division was HKD 18,401,000, compared to a loss of HKD 7,278,000 in the fiber segment, resulting in a total segment profit of HKD 8,957,000[26] - The company reported a pre-tax profit of HKD 6,013,000 for the six months ended June 30, 2023, compared to a pre-tax loss of HKD 3,874,000 for the same period in 2022[26] - Profit attributable to owners for the six months ended June 30, 2023, was approximately HKD 5.0 million, compared to a loss of about HKD 3.7 million in the same period in 2022[86] Assets and Liabilities - Non-current assets increased significantly to HKD 364.2 million as of June 30, 2023, from HKD 369.4 million as of December 31, 2022[8] - Current assets decreased to HKD 226.0 million as of June 30, 2023, from HKD 240.8 million as of December 31, 2022[8] - Total liabilities decreased from HKD 96.6 million as of December 31, 2022, to HKD 79.6 million as of June 30, 2023[9] - The company's total equity as of June 30, 2023, was HKD 510.2 million, compared to HKD 512.9 million as of December 31, 2022[9] - The company reported a net cash position of HKD 36.2 million as of June 30, 2023, down from HKD 58.2 million as of December 31, 2022[8] - The company’s total equity attributable to owners decreased to HKD 510,175,000 as of June 30, 2023, down from HKD 575,847,000 at the end of the previous period[11] - The total amount of deposits, prepayments, and other receivables was HKD 196,369,000 as of June 30, 2023, down from HKD 286,439,000 as of December 31, 2022[46] - Trade receivables amounted to HKD 43,176,000 as of June 30, 2023, down from HKD 56,463,000 as of December 31, 2022[48] Cash Flow and Financing - The company reported a net loss of HKD 3,663,000 for the six months ended June 30, 2023, compared to a profit of HKD 5,007,000 in the previous period[11] - Cash and cash equivalents decreased by HKD 21,423,000, ending the period at HKD 36,216,000, compared to HKD 15,079,000 at the end of the previous period[13] - Operating cash flow generated was HKD 5,134,000, a decrease from HKD 17,206,000 in the same period last year[13] - New bank borrowings amounted to HKD 51,332,000, while repayments totaled HKD 69,531,000, indicating a net cash outflow from financing activities of HKD 19,182,000[13] - The company reported a decrease in short-term lease expenses to HKD 5,688,000 for the six months ended June 30, 2023, from HKD 346,000 in the same period of 2022[44] - The total cash outflow for leases was HKD 3,888,000 for the six months ended June 30, 2023, down from HKD 8,635,000 for the same period in 2022[44] - The debt-to-equity ratio decreased from approximately 10.9% on December 31, 2022, to about 7.2% on June 30, 2023, primarily due to the repayment of bank borrowings[89] Operational Highlights - Revenue from the sale of optical cables was HKD 90,678,000, while revenue from optical fibers was HKD 12,278,000, totaling HKD 102,956,000 for the six months ended June 30, 2023[19] - The company incurred capital expenditures of HKD 114,443,000 for the purchase of property, plant, and equipment during the period[13] - The company plans to continue its market expansion efforts, particularly in the optical fiber and cable sectors, to enhance revenue growth[15] - The company has not reported any significant new product launches or technological advancements during this period[15] - Sales of optical cables increased by approximately 13.1% to about HKD 90.7 million, while sales of optical fibers decreased by approximately 45.6% to about HKD 12.3 million[67] - In Thailand, optical cable sales revenue rose from approximately HKD 47.4 million to about HKD 59.9 million due to the initiation of 5G network construction[70] - The gross margin for the Thai operations increased from approximately 11.7% to about 21.9% during the reporting period[70] Employee and Management - Total employee costs decreased to HKD 12,893,000 from HKD 14,290,000 year-over-year, indicating a reduction of approximately 9.8%[34] - The company’s management compensation for the six months ended June 30, 2023, was HKD 2.063 million, compared to HKD 1.960 million for the same period in 2022[63] - The total employee cost for the six months ended June 30, 2023, was approximately HKD 12.9 million, a decrease from HKD 14.3 million for the same period in 2022[110] - The total number of employees, including directors, was 175 as of June 30, 2023, down from 177 as of December 31, 2022[110] Governance and Compliance - The board of directors does not recommend the payment of an interim dividend for the six months ended June 30, 2023, consistent with the previous year[119] - The company has maintained a public float of at least 25% of its issued shares as required by listing rules[123] - All directors have confirmed compliance with the code of conduct for securities trading during the reporting period[125] - The audit committee has been established with three independent non-executive directors, ensuring compliance with listing rules[128] - The company has adopted the corporate governance code and has been in compliance with its provisions for the six months ending June 30, 2023[129] - No significant non-compliance with relevant laws and regulations has been reported for the six months ending June 30, 2023[132] Future Outlook and Commitments - The company has no significant future investment or capital asset plans beyond those disclosed in the prospectus[112] - The company has no significant contingent liabilities or litigation as of June 30, 2023, consistent with the previous reporting period[93] - The company has established foreign exchange risk management policies to mitigate risks arising from currency fluctuations, particularly involving USD and RMB[98] - The company has no pledged assets for bank financing as of June 30, 2023, similar to the situation on December 31, 2022[97] - The company has utilized approximately HKD 73.4 million of the net proceeds from its global offering for the construction of a new factory and installation of machinery, which represents 80% of the planned allocation[107] - Approximately HKD 4.6 million, representing 5% of the net proceeds, was intended for enhancing R&D capabilities, with only HKD 0.3 million utilized so far due to market demand fluctuations[107]
高科桥(09963) - 2023 - 中期财报