顺诚(00531) - 2023 - 中期业绩

Financial Highlights Financial Performance Summary For the six months ended June 30, 2023, the Group turned from profit to loss, recording a net loss of USD 1.1 million, primarily due to a 22.7% decrease in net sales to USD 215.6 million driven by reduced demand for home furniture in the US 2023年上半年關鍵財務指標 | Indicator | H1 2023 (thousand USD) | H1 2022 (thousand USD) | Change | | :--- | :--- | :--- | :--- | | Revenue | 215,630 | 278,995 | -22.7% | | Gross Profit | 52,620 | 79,998 | -34.2% | | Gross Margin | 24.4% | 28.7% | -4.3 percentage points | | (Loss)/Profit Attributable to Owners of the Parent | (1,123) | 8,473 | Turned from profit to loss | | Basic (Loss)/Earnings Per Share (US cents) | (0.037) | 0.276 | Turned from profit to loss | - The decrease in profit was primarily due to a decline in sales, mainly attributable to decreased demand for large home furniture in the US due to the continued downturn in the housing market in 2023[62] Consolidated Financial Statements Interim Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2023, the Group recorded revenue of USD 215.6 million, a decrease from USD 279 million in the prior period, resulting in a loss before tax of USD 1.353 million and a loss attributable to owners of the parent of USD 1.123 million 綜合損益表摘要 (截至6月30日止六個月) | Item | 2023 (thousand USD) | 2022 (thousand USD) | | :--- | :--- | :--- | | Revenue | 215,630 | 278,995 | | Gross Profit | 52,620 | 79,998 | | (Loss)/Profit Before Tax | (1,353) | 10,578 | | (Loss)/Profit for the Period | (1,123) | 8,473 | Interim Condensed Consolidated Statement of Comprehensive Income After recording a period loss of USD 1.123 million and including other comprehensive income items, the total comprehensive loss attributable to owners of the parent for the six months ended June 30, 2023, was USD 0.704 million 綜合全面收益表摘要 (截至6月30日止六個月) | Item | 2023 (thousand USD) | 2022 (thousand USD) | | :--- | :--- | :--- | | (Loss)/Profit for the period attributable to owners of the parent | (1,123) | 8,473 | | Exchange differences arising from translation of overseas operations | 419 | (2,961) | | Total comprehensive (loss)/income for the period attributable to owners of the parent | (704) | 5,512 | Interim Condensed Consolidated Statement of Financial Position As of June 30, 2023, the Group's total assets were USD 569 million, total liabilities were USD 258 million, and net assets were USD 311 million, with a healthy current ratio of 1.7 times 財務狀況表摘要 | Item | June 30, 2023 (thousand USD) | December 31, 2022 (thousand USD) | | :--- | :--- | :--- | | Total Non-current Assets | 204,159 | 206,455 | | Total Current Assets | 365,088 | 409,921 | | Total Assets | 569,247 | 616,376 | | Total Current Liabilities | 219,488 | 247,153 | | Total Non-current Liabilities | 38,969 | 53,856 | | Total Liabilities | 258,457 | 301,009 | | Net Assets | 310,790 | 315,367 | | Total Equity | 310,790 | 315,367 | Notes to the Financial Statements Basis of Preparation and Changes in Accounting Policies This interim financial information is prepared in accordance with Hong Kong Accounting Standard 34, with new and revised Hong Kong Financial Reporting Standards adopted having no significant impact on the Group's financial position or performance - The interim condensed consolidated financial information has been prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting'[4] - The Group has adopted several new and revised Hong Kong Financial Reporting Standards, but these amendments had no significant impact on the Group's interim condensed consolidated financial information[16][25][27] Segment and Revenue Information The Group primarily engages in the manufacturing and sale of furniture as a single reportable segment, with the United States being the main market, contributing approximately 94.5% of total revenue - The Group's revenue primarily derives from the manufacturing and sale of furniture, managed as a single reportable segment[28][17] 按地區市場劃分的收益 (千美元) | Region | H1 2023 | H1 2022 | | :--- | :--- | :--- | | People's Republic of China (including Hong Kong) | 2,767 | 4,105 | | United States of America | 203,703 | 269,413 | | Others | 9,004 | 5,323 | | Total | 215,474 | 278,841 | Dividends The Board does not recommend any interim dividend for the six months ended June 30, 2023, following the payment of a final dividend of HKD 0.01 per share for the year ended December 31, 2022 - The Board does not recommend the payment of any interim dividend for the current period[43][76] - During the current period, the company paid a final dividend of HKD 0.01 per share for the year ended December 31, 2022, totaling approximately USD 3.9 million[43] (Loss)/Earnings Per Share Attributable to Owners of the Parent For the six months ended June 30, 2023, the loss attributable to owners of the parent was USD 1.123 million, resulting in a basic and diluted loss per share of 0.037 US cents based on 3.026 billion weighted average ordinary shares 每股(虧損)/盈利計算 | Item | H1 2023 | H1 2022 | | :--- | :--- | :--- | | (Loss)/Profit (thousand USD) | (1,123) | 8,473 | | Weighted average number of ordinary shares (shares) | 3,025,814,773 | 3,066,086,889 | | Basic and diluted (loss)/earnings per share (US cents) | (0.037) | 0.276 | Management Discussion and Analysis Business and Financial Review In H1 2023, the Group's net sales decreased by 22.7% to USD 215.6 million, resulting in a net loss of USD 1.1 million due to weak US furniture demand, prompting active cost control and inventory management - Weak US furniture demand due to monetary policy tightening, inflationary pressures, and a slowing real estate market led to industry-wide inventory overhang[61] - The Group implemented effective inventory management, reducing inventory by over 23% from the end of last year, and initiated a comprehensive cost reduction program to enhance resilience[36] 財務表現回顧 (截至6月30日止六個月) | Item | 2023 | 2022 | Reason for Change | | :--- | :--- | :--- | :--- | | Net Sales | USD 215.6 million | USD 279 million | Reduced demand in US market | | Gross Margin | 24.4% | 28.7% | Lower sales and increased promotional discounts | | Total Operating Expenses | USD 60.6 million | USD 70.6 million | Reduced sales-related variable expenses and cost control | | Net (Loss)/Profit | (USD 1.1 million) | USD 8.5 million | Primarily impacted by sales decline | Liquidity, Financial Resources, and Capital Structure As of June 30, 2023, the Group maintained a robust financial position with increased cash and cash equivalents, reduced interest-bearing bank borrowings, an improved gearing ratio of 55.3%, and a stable current ratio of 1.7 times, while facing Vietnamese Dong exchange rate risks 流動性及資本結構指標 | Indicator | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | USD 68 million | USD 58.7 million | | Total interest-bearing bank borrowings | USD 172 million | USD 199.7 million | | Gearing ratio | 55.3% | 63.3% | | Current ratio | 1.7 times | 1.7 times | - The Group faces foreign exchange risk primarily from fluctuations in the Vietnamese Dong against the US Dollar, as most revenue is denominated in US Dollars while most cost of sales is paid in Vietnamese Dong[50] Outlook Looking ahead to H2 2023, the Group anticipates continued market challenges but remains optimistic about stabilizing global supply chains and US real estate recovery, focusing on restoring profitability through cost control, inventory digestion, and operational efficiency while pursuing long-term sustainable growth - Short-term challenges: The market continues to face challenges from monetary policy tightening, and recession risks may continue to impact consumer confidence[56] - Response strategies: Focus on restoring profitability, with measures including effective cost control, further inventory digestion, improving operational efficiency, launching new products, and exploring new customers[56][49] - Long-term confidence: With a diversified brand portfolio, synergy across product lines and sales channels, and continuous product innovation, the Group is confident in maintaining its competitive advantage and seeking growth opportunities[57][49] Corporate Governance Compliance and Review The Group complied with all Corporate Governance Code provisions during the period, except for the non-separation of Chairman and CEO roles, with all directors confirming compliance with securities transaction codes, and interim financial information reviewed by independent auditors and the Audit Committee - The Group has complied with all code provisions in the Corporate Governance Code during the period, except for the roles of Chairman and Chief Executive Officer being held by the same person (Mr. Kwok Shan Kwong), constituting a deviation from code provision C.2.1[67][77] - All directors confirmed compliance with the standard code for securities transactions and the company's internal code during the period[69] - The Group did not purchase, sell, or redeem any of the company's listed securities during the period[70] - The unaudited interim financial information has been reviewed by the independent auditor Ernst & Young and the company's Audit Committee[72]