Financial Performance - For the six months ended December 31, 2023, the company reported revenue of HKD 49,478,000, a decrease of 5.7% compared to HKD 52,496,000 in the same period of 2022[14] - Gross profit increased by 10.2% to HKD 23,835,000 from HKD 21,626,000 year-on-year[14] - Net profit and total comprehensive income rose by 14.2% to HKD 13,839,000, compared to HKD 12,114,000 in the previous year[14] - Earnings per share improved by 14.6% to HKD 1.73 from HKD 1.51 in the prior year[14] - The group's revenue for the six months ended December 31, 2023, decreased by approximately HKD 3.0 million or 5.7% to approximately HKD 49.5 million, primarily due to a reduction in new projects and customer numbers[15] - The profit attributable to the owners of the company increased by approximately HKD 1.7 million or 14.2% to approximately HKD 13.8 million[21] - The company reported a net profit of HKD 13,862,000 for the six months ended December 31, 2023, up 15.1% from HKD 12,048,000 in the prior year[50] - The company’s total equity increased from HKD 123,493,000 as of December 31, 2022, to HKD 158,213,000 as of December 31, 2023, reflecting a growth of approximately 28.14%[55] Market Environment - The overall business environment remains challenging due to high interest rates and a sluggish local property market[9] - The Hong Kong economy is projected to grow by 3.2% in 2023, but private residential prices face downward risks[9] - The company acknowledges the impact of external economic factors on its operations and profitability in the short to medium term[9] Cost Management - The cost of sales decreased by approximately HKD 5.3 million or 16.9% to approximately HKD 25.6 million, attributed to reduced sales and lower material supply costs[16] - The total employee cost for the period was approximately HKD 13.3 million, a decrease from approximately HKD 13.9 million in the previous period, mainly due to the closure of a factory[32] - The company will continue to monitor market developments and consider cost-saving measures as necessary[9] Cash Flow and Assets - As of December 31, 2023, the group maintained a cash and bank balance of approximately HKD 51.3 million and a current ratio of approximately 7.4 times[22] - The company experienced a decrease in cash and cash equivalents from HKD 88,483,000 in December 2022 to HKD 51,309,000 in December 2023, indicating a reduction of about 42.05%[60] - Trade receivables decreased significantly to HKD 28,531,000 from HKD 45,954,000, indicating a reduction of 37.9%[51] - Total assets increased to HKD 171,283,000 as of December 31, 2023, compared to HKD 158,762,000 as of June 30, 2023, marking a growth of 7.9%[51] Research and Development - The company has allocated HKD 2.4 million for research and development (R&D) purposes, with HKD 1.3 million actually utilized as of December 31, 2023[43] - The company aims to develop new prototypes for next-generation machinery, with an allocated budget of HKD 0.9 million for this initiative[38] - The company is exploring methods to enhance automation in its machinery to improve efficiency and reduce human error, with a budget of HKD 0.2 million[38] - The company is actively seeking suitable candidates to enhance its R&D team and improve the quality and cost-effectiveness of its existing services[43] Shareholder Information - The company does not recommend the payment of dividends for the current period[25] - The board of directors does not recommend the payment of an interim dividend for the period[128] - The group did not declare or propose any dividends for the six months ended December 31, 2023, consistent with the previous year[93] Corporate Governance - The company has established an Audit Committee consisting of three independent non-executive directors, ensuring compliance with applicable accounting standards[137] - The company has adhered to the corporate governance code as stipulated in the GEM Listing Rules during the reporting period[138] - All directors confirmed compliance with the trading rules and code of conduct regarding securities transactions as of December 31, 2023[139]
人和科技(08140) - 2024 - 中期财报