Revenue and Profitability - Revenue from contracts with customers for the six months ended December 31, 2023, was HK$649,296,000, an increase of 1.9% compared to HK$637,858,000 in the same period of 2022[4] - Gross profit for the period was HK$89,913,000, up from HK$71,996,000, reflecting a gross margin improvement[4] - The Group recorded total turnover of HK$649,296,000 for the six months ended 31st December 2023, a slight increase of 1.8% compared to HK$637,858,000 in the same period last year[181] - Overall gross profit increased by 24.9% to HK$89,913,000, with a gross profit margin rising by 2.6 percentage points to 13.8%[181] - Loss attributable to shareholders narrowed significantly by 46% to HK$18,412,000, compared to HK$34,092,000 in the previous year[181] Operating Performance - Operating loss decreased to HK$3,523,000 from HK$21,028,000, indicating a significant reduction in operational losses[4] - The group reported a loss before income tax of HK$14,998,000, compared to a loss of HK$28,721,000 in the same period last year[93] - The provision for impairment of inventories was HK$5,795,000, indicating a significant increase in inventory write-downs[93] - The operating loss for the group was HK$3,523,000, compared to an operating loss of HK$21,028,000 in the same period last year[93] Financial Position - Total equity decreased to HK$515,628,000 as of December 31, 2023, down from HK$536,504,000 as of June 30, 2023, representing a decline of approximately 3.6%[18] - Non-current assets totaled HK$297,634,000 as of December 31, 2023, slightly up from HK$294,943,000 at the end of June 2023[16] - Current assets decreased to HK$676,656,000 from HK$696,326,000, primarily due to a reduction in cash and bank balances[16] - Total liabilities increased slightly to HK$458,662,000 from HK$454,765,000, indicating a rise of approximately 0.4%[19] - Total borrowings decreased to HK$326,877,000 as of December 31, 2023, from HK$338,922,000 as of June 30, 2023, a reduction of about 3.6%[147] Cash Flow and Liquidity - Cash and bank balances were HK$108,968,000, down from HK$150,637,000, reflecting a liquidity contraction[16] - For the six months ended December 31, 2023, cash generated from operations was HK$10,503,000, a significant decrease of 87.4% compared to HK$83,382,000 in the same period of 2022[30] - Net cash generated from operating activities fell to HK$570,000, down from HK$73,196,000, indicating a decline of 99.2%[30] - The Group's cash and bank balances as of December 31, 2023, amounted to approximately HK$108,968,000[197] Financing and Costs - The company reported finance costs of HK$12,158,000, an increase from HK$8,290,000, indicating rising borrowing costs[4] - Finance costs totaled HK$12,158,000, significantly higher than the previous year's HK$8,290,000[93] - The current income tax expense for Mainland China corporate income tax was HK$7,409,000, up from HK$3,900,000 in the same period last year[111] Shareholder Information - The basic and diluted loss per share for the period was HK$4.99, an improvement from HK$9.23 in the previous year[8] - No interim dividend was declared for the six months ended December 31, 2023, consistent with the previous year[118] - The Board of Directors resolved not to declare any interim dividend for the six months ended 31st December 2023[176] Business Operations and Strategy - The company is engaged in the manufacturing and trading of plastic materials, pigments, colorants, compounded plastic resins, and engineering plastic products[33] - The Group plans to expand its operations in the ASEAN region, with a new customer base expected to start operations in the first half of 2024[191] - The Group has secured ISCC PLUS certification, anticipating increased demand for environmentally friendly materials in the future[192] - The automotive industry is expected to have bright development prospects, supported by government policies promoting auto sales in mainland China[190] - The Group maintains a conservative strategy in light of ongoing economic uncertainties and will focus on long-term development and prudent financial management[189] Accounting and Compliance - The company has adopted new accounting standards including HKFRS 17 for insurance contracts starting from July 1, 2023[41] - The interim financial information has been prepared in accordance with Hong Kong Accounting Standard 34, and should be read in conjunction with the annual financial statements for the year ended June 30, 2023[36] - The adoption of new accounting standards and amendments is not expected to significantly affect the Group's financial performance and position[51] - The Group has commenced an assessment of the impact of new standards but does not expect significant effects on its results of operations[51]
毅兴行(01047) - 2024 - 中期财报