Financial Performance - The company's revenue for the six months ended September 30, 2023, was approximately HKD 726.7 million, an increase of 44.0% compared to HKD 504.6 million for the corresponding period in 2022[15]. - The net profit for the period was approximately HKD 12.3 million, an increase of 42.8% compared to the corresponding period[9]. - Profit before tax increased to HKD 16,908,000, compared to HKD 10,257,000 in the previous year, reflecting a 65% rise[71]. - Basic and diluted earnings per share rose to HKD 1.23, up from HKD 0.86, marking a 43% increase[71]. - The group reported a profit attributable to owners of HKD 12,301,000 for the six months ended September 30, 2023, compared to HKD 8,616,000 in the previous year, marking a year-on-year increase of 42.5%[113]. Revenue Breakdown - Diesel sales generated revenue of approximately HKD 685.3 million, accounting for 94.3% of total revenue, compared to HKD 461.3 million and 91.4% for the corresponding period[16]. - Lubricant sales revenue was approximately HKD 22.1 million, representing 3.0% of total revenue, compared to HKD 22.6 million and 4.5% for the corresponding period[17]. - Revenue from fleet card services decreased by approximately HKD 1,900,000 or 10.9% to about HKD 15,400,000 due to slow local economic growth and increased market competition[18]. - Revenue from the sale of other products was approximately HKD 3,800,000 and HKD 3,400,000, accounting for 0.5% and 0.7% of total revenue, respectively[20]. - Revenue from Hong Kong was HKD 725,504,000, a significant increase from HKD 503,590,000 in the prior year[101]. Cost and Expenses - Sales costs increased by approximately HKD 216,500,000 or 45.0% to about HKD 697,300,000, aligning with revenue trends[21]. - Gross profit increased by approximately HKD 5,500,000 or 23.1% to about HKD 29,300,000[22]. - Selling and distribution expenses decreased by approximately HKD 600,000 or 46.2% to about HKD 700,000[23]. - Administrative and other operating expenses decreased by approximately HKD 700,000 or 5.2% to about HKD 12,800,000[25]. - Financing costs decreased by approximately HKD 100,000 or 12.5% to about HKD 700,000 due to reduced bank borrowings[26]. Assets and Liabilities - Current assets as of September 30, 2023, were approximately HKD 142,000,000, up from HKD 120,300,000 as of March 31, 2023[36]. - Total assets as of September 30, 2023, were HKD 217,685,000, compared to HKD 206,230,000 as of March 31, 2023[74]. - Trade receivables increased to HKD 43,770,000 as of September 30, 2023, compared to HKD 38,010,000 as of March 31, 2023, reflecting a rise of 15.5%[125]. - Trade payables amounted to HKD 435,000 (unaudited), a decrease of 32.7% from HKD 647,000 as of March 31, 2023[127]. - Bank borrowings as of September 30, 2023, totaled HKD 42,878,000, a slight decrease from HKD 43,773,000 as of March 31, 2023[130]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules and has complied with all provisions during the reporting period[44]. - The audit committee, consisting of three independent non-executive directors, has reviewed the financial statements and has no objections to the accounting treatments adopted by the company[57]. - The company has ensured compliance with the corporate governance code and has maintained a robust internal control system[57]. - The directors have confirmed their compliance with the securities trading code during the reporting period[45]. - The company has confirmed that all directors have adhered to the securities trading standards during the reporting period[45]. Market and Economic Conditions - The economic situation in Hong Kong and China poses challenges for the fleet card division, potentially affecting overall demand for commercial fuel[11]. - The construction of Route 11 is expected to increase demand for construction materials and fuel, aligning with the company's core products[12]. - The company plans to explore initiatives promoting clean fuel and environmentally friendly practices in response to global sustainability trends[12]. - The company will closely monitor economic trends and adjust marketing and operational strategies to ensure sustainable growth amid economic uncertainties[13]. - The increase in revenue is primarily attributed to rising demand for diesel due to the easing of cross-border road freight restrictions[15]. Cash Flow and Financing - The operating cash flow for the six months ended September 30, 2023, was HKD 14,005,000, compared to a negative cash flow of HKD 2,095,000 in the same period of 2022, showing a significant turnaround[78]. - The company's financing activities resulted in a net cash outflow of HKD 2,489,000 for the six months ended September 30, 2023, compared to an outflow of HKD 13,544,000 in the same period of 2022, indicating improved cash management[80]. - Cash and cash equivalents increased to HKD 51,911,000 as of September 30, 2023, from HKD 36,723,000 at the end of the previous year, marking a rise of about 41.3%[80]. - Interest expenses for the six months ended September 30, 2023, totaled HKD 719,000, a decrease of 10.9% from HKD 807,000 in the same period of 2022[107]. - Current tax expense for the period increased significantly to HKD 4,664,000 from HKD 1,698,000, representing a growth of 174.5%[109].
域高国际控股(01621) - 2024 - 中期财报