Financial Performance - Profit for the period for the six months ended 30 September 2023 was HK$73,455,000, a decrease of 71.7% compared to HK$259,489,000 in the same period of 2022[11]. - Total comprehensive income for the period was HK$12,406,000, down from HK$60,606,000 in the previous year, reflecting a significant decline[12]. - Basic and diluted earnings per share for the period were both HK$0.16, compared to HK$0.36 in the previous year, indicating a decrease of 55.6%[3]. - The company reported a significant decline in profit from continuing operations, with a profit of HK$73,455,000 compared to HK$259,489,000 in the previous year[11]. - The Group's profit for the period was $(198,883,000), reflecting a challenging financial environment compared to the previous year's profit of $259,489,000[19]. - Profit attributable to equity shareholders decreased by approximately 21% to HK$73,455,000 from HK$92,542,000, primarily due to decreased market demand amid a slowing global economy, inflation, and rising interest rates[1]. Revenue and Sales - The Group's revenue from external customers for the six months ended September 30, 2023, was $1,439,788,000, compared to $1,645,666,000 for the same period in 2022, reflecting a decrease of approximately 12.5%[54]. - The turnover of the metal and plastic business decreased by approximately 18% to HK$837,141,000, influenced by inflation pressures and a conservative capital expenditure approach by enterprise customers[2]. - The electronics manufacturing services business turnover decreased by approximately 3% to HK$602,647,000, with stable demand for storage products from customers[3]. Cash Flow and Liquidity - For the six months ended 30 September 2023, the net cash generated from operations was $199,789,000, compared to $353,238,000 for the same period in 2022, representing a decrease of approximately 43.5%[22]. - The cash and cash equivalents at the end of the period were $218,715,000, down from $629,829,000 in the previous year, reflecting a decrease of approximately 65.2%[22]. - The Group's cash and bank deposits amounted to HK$218,715,000, with unutilized banking facilities of HK$645,151,000, providing sufficient liquidity for current and future operations[198]. Investments and Capital Expenditures - The Group acquired property, plant, and equipment at a cost of approximately $93,889,000 for the six months ended 30 September 2023, compared to $88,141,000 for the same period in 2022, representing an increase of 8%[59]. - The Group purchased property, plant, and equipment amounting to $48,229,000 during the period, down from $74,197,000 in the previous period[169]. Debt and Liabilities - As of 30 September 2023, the Group had total bank borrowings of $678,434,000 and net current liabilities of $76,795,000[28]. - The portion of bank borrowings repayable within one year increased to $583,813,000 from $422,372,000, indicating a significant rise of 38.2%[78]. - The financial covenant related to net tangible asset balance was breached, with the balance amounting to $540,046,000 as of 30 September 2023, compared to $406,000,000 as of 31 March 2023[80]. - The Group obtained waivers from lenders regarding the breach of financial covenants, and no immediate repayment of loans has been demanded as of the reporting date[80]. Operational Developments - The Group has completed part of the internal renovation of B6 Karrie Craftsmanship Building, installing advanced equipment to lower production costs and enhance efficiency[5]. - The Group's factory in Thailand has commenced operations, providing flexible production capabilities and reducing reliance on a single production region[9]. - The Group is enhancing automation processes and providing specific training to improve staff expertise and operational efficiency, particularly in material packaging and logistics[8]. - The establishment of a marketing team in Mainland China aims to strengthen customer service and explore new market opportunities[7]. Strategic Focus - The Group continues to focus on sustainable development, adhering to a business model of "green production, saving energy, and reducing emissions"[10]. - The Group aims to achieve sustainable development and maximize shareholder interests through diversified products and improved quality efficiency[192]. - The Group's strategy includes a cautious approach to development and financial management in response to geopolitical risks and rising interest rates, affecting capital investments[190]. Financial Position - Total equity as of 30 September 2023 was HK$918,846,000, a decrease from HK$936,762,000 as of 1 April 2023[14]. - The Group's total assets amounted to HKD 2,571,710,000, an increase from HKD 2,550,779,000 as of March 31, 2023, representing a growth of approximately 0.83%[97]. - The Group's non-current liabilities were classified as HKD 65,455,000 as of September 30, 2023, down from HKD 140,000,000 as of March 31, 2023, indicating a reduction of 53.3%[84]. - The Group's net interest-bearing borrowings as of September 30, 2023, were HK$465,582,000, down from HK$502,664,000 as of March 31, 2023, indicating a reduction in debt levels[197]. - The net gearing ratio improved to 51% as of September 30, 2023, compared to 54% as of March 31, 2023, reflecting a stronger equity position[197]. Other Financial Metrics - The Group's finance costs increased to $21,553,000 for the six months ended September 30, 2023, compared to $14,767,000 in the same period of 2022, representing an increase of approximately 46%[58]. - The Group's finance income for the period was HKD 4,103,000, while finance costs amounted to HKD 2,556,000, resulting in a net finance income of HKD 1,547,000[86]. - The Group's liabilities due to non-fulfillment of covenants were reclassified from non-current to current liabilities, with nil balance identified as of September 30, 2023[84].
嘉利国际(01050) - 2024 - 中期财报