Financial Performance - For the six months ended December 31, 2023, the company reported a revenue of HKD 567,572,000, an increase from HKD 194,552,000 in the same period of 2022, representing a growth of approximately 192.2%[2] - The gross profit for the same period was HKD 18,434,000, compared to HKD 7,250,000 in 2022, indicating a significant increase of 154.5%[2] - The company incurred a loss before tax of HKD 69,469,000, a substantial decline from a loss of HKD 5,555,000 in the previous year[4] - The net loss for the period was HKD 59,177,000, compared to a net loss of HKD 11,019,000 in 2022, reflecting an increase in losses of 436.5%[4] - The total comprehensive income for the period was a loss of HKD 22,350,000, compared to a loss of HKD 19,156,000 in the same period last year[4] - The company reported a basic and diluted loss per share of HKD 2.47, compared to HKD 0.46 in the same period of 2022[4] - The company reported a pre-tax loss of HKD (58,757) thousand for the six months ended December 31, 2023, compared to a loss of HKD (10,912) thousand in the same period last year[60] - The company reported a loss attributable to shareholders of approximately HKD 58,757,000, compared to a loss of HKD 10,912,000 in the same period last year[134] Assets and Liabilities - The company's non-current assets totaled HKD 1,071,327,000 as of December 31, 2023, down from HKD 1,094,772,000 as of June 30, 2023[6] - Current assets increased to HKD 375,657,000 from HKD 352,088,000, showing a growth of approximately 6.5%[6] - The total liabilities amounted to HKD 581,179,000, compared to HKD 558,705,000 in the previous period, indicating an increase of about 4.0%[8] - The company’s total assets as of December 31, 2023, were reported at HKD 1,828,432,000, consistent with the previous year[15] - The company’s accumulated losses reached HKD (1,715,877,000) as of December 31, 2023, indicating ongoing financial challenges[15] - The group’s total borrowings stood at HKD 283,788,000, which are secured[74] - The group's accounts payable as of December 31, 2023, amounted to HKD 83,154,000, compared to HKD 55,173,000 as of June 30, 2023, reflecting an increase of approximately 50.7%[96] Cash Flow - The company reported a net cash inflow from operating activities of HKD 6,254,000 for the six months ended December 31, 2023, compared to HKD 57,986,000 for the same period in 2022, indicating a significant decrease[17] - The group recorded a net cash inflow from investing activities of HKD 6,178,000, down from HKD 20,435,000 in the prior year, highlighting reduced investment returns[17] - Financing activities resulted in a net cash inflow of HKD 10,342,000, a recovery from a net cash outflow of HKD (68,063,000) in the previous period[17] - The company's cash and cash equivalents increased by HKD 22,774,000, compared to an increase of HKD 10,358,000 in the same period last year[17] - As of December 31, 2023, the company had cash and cash equivalents totaling HKD 110,675,000, up from HKD 79,285,000 at the end of the previous year[17] - The group raised new borrowings of HKD 99,401,000 for additional working capital and repaid HKD 82,830,000 during the six months ending December 31, 2023, compared to zero new borrowings and HKD 56,169,000 repayments in the same period of 2022[74] Segment Performance - The group has three reportable segments, including cable and wire manufacturing and trading, and has not conducted any business activities in its mining segment since acquisition[47] - The copper rod business generated revenue of approximately HKD 444,970,000, a significant increase of about 465.3% from HKD 78,718,000 in the previous year[109] - The group's wire and cable business revenue was approximately HKD 116,998,000, an increase of about 6.4% from HKD 109,912,000 in the previous year[108] - Revenue from the Chinese market was HKD 505,712 thousand, a substantial increase from HKD 133,303 thousand in the previous year[55] - Revenue from the China and Hong Kong business surged by approximately 253.2% to about HKD 512,657,000, representing approximately 90.3% of total revenue[136] Governance and Compliance - The company has adopted the corporate governance code and complied with all relevant provisions, except for specific deviations outlined in the document[156] - The independent non-executive director has served for over nine years and was re-elected at the 2022 annual general meeting[158] - The company is currently seeking a new independent non-executive director to meet regulatory requirements[159] - The chairman and CEO roles are held by the same individual, which the board believes is in the best interest of the company[160] - The audit committee has reviewed the unaudited interim results for the review period and agreed with the accounting treatment adopted[161] Future Outlook - The group anticipates a challenging operating environment for wires and cables in the coming year due to high foreign interest rates and uncertainties from the U.S. presidential election[113] - The group plans to adjust its sales strategy and resources to mitigate uncertainties arising from domestic economic conditions, the war, and high interest rates[113] - The group is reviewing the new Investment Law in Mongolia to assess its potential benefits for investments in the country[111] - The company continues to focus on optimizing and integrating existing businesses while exploring potential partnerships and new business opportunities for sustainable growth[145] - The construction of the modern factory in Dongguan is nearing completion, with efforts to finalize the project and review land resource allocation to enhance revenue and shareholder returns[143] Legal and Regulatory Matters - The company is currently appealing a court decision requiring it to pay approximately RMB 21,000,000 related to a construction project, which may impact future financial performance[12] - The indirect non-wholly owned subsidiary, Lianjiang Zhou's Stone Co., Ltd., has suspended its land development project due to the stone industry outlook and previous pandemic issues, resulting in a court ruling on July 5, 2023, requiring compensation of approximately RMB 21,000,000[112] - The company has been seeking legal advice and will keep shareholders informed of any significant developments regarding ongoing litigation[165] Taxation - The group did not recognize any tax provision for Hong Kong profits tax for the six months ending December 31, 2023, due to tax losses offsetting taxable profits[82] - The group’s tax expense for the six months ended December 31, 2023, included a deferred tax expense of HKD (10,292,000), compared to a deferred tax income of HKD 5,464,000 for the same period in 2022[38]
星凯控股(01166) - 2024 - 中期业绩