Financial Performance - For the six months ended September 30, 2023, the profit attributable to equity holders of the Company was HK$21,909,000, a decrease of 23.5% compared to HK$28,804,000 for the same period in 2022[12]. - The basic earnings per share for the period was HK3.24 cents, down from HK4.28 cents in the previous year, reflecting a decline of 24.4%[32]. - Total comprehensive income for the period was a loss of HK$9,396,000, compared to a profit of HK$29,079,000 in the previous year[60]. - Profit for the period attributable to equity holders of the Company was HK$21,909,000, a decline of 23.9% from HK$28,804,000 in 2022[103]. - Profit before tax increased to HK$26.7 million, up 29.9% from HK$20.6 million in the previous year[114]. - The Group's share of profits from associates was HK$13.6 million, compared to HK$17.5 million in the previous year[114]. - The Group reported a net fair value gain of approximately HK$12.7 million for the period, compared to a loss of approximately HK$21.5 million in 2022[1]. Revenue and Profitability - Revenue for the six months ended September 30, 2023, was HK$383,032,000, a decrease of 40.1% compared to HK$639,175,000 in 2022[103]. - Gross profit for the same period was HK$21,819,000, down 61.9% from HK$57,285,000 in the previous year[103]. - The business volume decreased by 41.9%, which was slightly offset by a 4.1% improvement in the average selling price[178]. - The Group maintained a gross profit margin of 5.7% for the Period, compared to 9.0% in 2022[181]. Assets and Liabilities - As of September 30, 2023, the net assets of the Company were HK$1,193,853,000, a slight decrease from HK$1,214,656,000 as of March 31, 2023[37]. - Non-current liabilities totaled HK$105,470,000, an increase from HK$101,420,000 as of March 31, 2023, primarily due to deferred tax liabilities[37]. - Total current assets decreased to HK$728.9 million from HK$770.7 million as of March 31, 2023[114]. - Total non-current assets amounted to HK$803.4 million, down from HK$817.2 million as of March 31, 2023[114]. - Total current liabilities decreased to HK$233 million from HK$271.9 million as of March 31, 2023[114]. Cash Flow and Liquidity - The cash and cash equivalents net amount was approximately HK$430,000,000, providing a solid liquidity position for the Company[28]. - The net cash flows from operating activities for the six months ended September 30, 2023, were HK$57,914,000, an increase from HK$32,996,000 in the same period of 2022[80]. - Cash and cash equivalents at the end of the period stood at HK$35,398,000, up from HK$20,894,000 at the end of September 2022[80]. - The Group maintained a healthy liquidity position with net cash in hand of approximately HK$430 million as of September 30, 2023, up from approximately HK$393 million on March 31, 2023[1]. - The current ratio was approximately 3.1 as of September 30, 2023, compared to 2.8 as of March 31, 2023[147]. Dividends - The company declared a special final dividend of HK$1,350,000 for 2023, alongside a final dividend of HK$13,496,000[60]. - Proposed interim dividend per share is HK$1.5, down from HK$1.8 in the previous year, representing a 16.7% decrease[103]. - Total dividends per share for the period decreased to HK$2.0 from HK$2.3, a reduction of 13.0%[103]. - The Board declared an interim dividend of HK1.5 cents per ordinary share, down from HK1.8 cents in 2022, and a special interim dividend of HK0.5 cents[1]. Market and Operational Insights - The Company has been focusing on enhancing its product offerings and market expansion strategies, although specific new products or technologies were not detailed in the report[29]. - Future outlook remains cautious, with management indicating potential challenges in the market environment affecting performance[29]. - The Group's order book remained weak due to challenging business conditions, including weak demand and lack of visibility in the order pipeline[178]. - The Group continued to enhance operational efficiency to strengthen its cost advantage amid high uncertainty in the market[178]. - The Group is confident in its production capability, which is expected to help secure client trust as the market regains momentum[178]. Share Options and Equity - The company issued shares from the exercise of share options, resulting in an increase of HK$116,000 in share capital[80]. - During the period, 150,000 share options were exercised at an exercise price of HK$0.772[137]. - The share option scheme has 10,570,000 options outstanding as of 30 September 2023, down from 11,070,000 options as of 1 April 2023[159]. - The trustee of the share award scheme purchased 2,622,000 shares during the period, holding a total of 6,732,000 shares as of 30 September 2023[159]. - The number of awarded shares available for grant under the share award scheme decreased from 60,105,544 to 59,407,544 shares from 1 April 2023 to 30 September 2023[159]. Foreign Exchange and Financial Management - The Group adopts a conservative approach to foreign exchange exposure management, monitoring market conditions for potential hedging needs[148]. - The Group's treasury policies aim to mitigate the impact of foreign currency fluctuations and minimize financial risks[148]. - The management of currency risk is centralized at the Group's headquarters in Hong Kong[148]. - The Group generally finances its operations with internal resources and bank facilities provided by banks in Hong Kong[148].
信星集团(01170) - 2024 - 中期财报