贸易通(00536) - 2023 - 中期业绩

Financial Summary Consolidated Income Statement Summary The Group's revenue remained stable at HKD 124.9 million, while profit for the period surged to HKD 38.84 million, driven by improved investment performance and interest income Consolidated Income Statement Key Metrics (For the six months ended June 30) | Metric | 2023 (HKD thousands) | 2022 (HKD thousands) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 124,920 | 125,459 | -0.4% | | Operating Profit | 33,361 | 37,308 | -10.6% | | Net Other Income/(Loss) | 10,823 | (19,696) | N/A | | Profit Before Tax | 44,184 | 17,574 | +151.4% | | Profit for the Period | 38,840 | 14,563 | +166.7% | | Basic Earnings Per Share (HK cents) | 4.89 | 1.83 | +167.2% | - Significant profit growth was primarily due to improved investment performance, with no fair value loss on financial investments in H1 2023 (compared to a loss of HKD 25.9 million in the prior period), and an HKD 8.2 million increase in interest income due to rising interest rates[131] Consolidated Balance Sheet Summary As at June 30, 2023, the Group's total assets were HKD 510.6 million and net assets were HKD 344.6 million, with the decrease in net assets primarily due to dividend distribution, maintaining a strong financial position with no bank borrowings Consolidated Balance Sheet Summary | Metric | As at June 30, 2023 (HKD thousands) | As at December 31, 2022 (HKD thousands) | | :--- | :--- | :--- | | Non-current Assets | 34,417 | 30,869 | | Current Assets | 476,196 | 501,692 | | Current Liabilities | 161,113 | 164,142 | | Net Assets | 344,628 | 364,413 | | Total Equity | 344,628 | 364,413 | - The decrease in net assets was primarily due to the distribution of HKD 59 million in 2022 final and special dividends[163] - As at June 30, 2023, the Group had no borrowings[137] Dividends The Board declared an interim dividend of 3.7 HK cents per share for the six months ended June 30, 2023, a significant increase from the prior period, representing a payout ratio of approximately 75% of profit for the period Interim Dividend Details | Item | 2023 Interim | 2022 Interim | | :--- | :--- | :--- | | Dividend Per Share | 3.7 HK cents | 1.83 HK cents | | Total Amount (HKD thousands) | 29,401 | 14,542 | | Payout Ratio | Approx. 75.7% | - | - Dividends will be paid on or about October 6, 2023, to shareholders registered on September 25, 2023[140] Management Discussion & Analysis Business Review In H1 2023, the Group's business segments showed mixed performance amid a contracting Hong Kong external trade environment, with strong growth in Identity Management driven by eKYC and PKI solutions, while e-Commerce declined and Other Services saw slight revenue decrease but profit growth e-Commerce Business The e-Commerce business recorded total revenue of HKD 79 million in H1 2023, a 7.8% year-on-year decrease, with GETS revenue slightly down 5.1% to HKD 70 million and supply chain solutions revenue significantly declining 24.5%, leading to a 29.4% drop in segment profit to HKD 21.1 million e-Commerce Business Performance (H1 2023 vs H1 2022) | Business Sub-segment | H1 2023 Revenue (HKD millions) | H1 2022 Revenue (HKD millions) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Government Electronic Trading Services (GETS) | 70.0 | 73.7 | -5.1% | | Supply Chain Application Solutions | 9.0 | 11.9 | -24.5% | | Total | 79.0 | 85.6 | -7.8% | - Despite a 16.3% contraction in overall GETS market transaction volume, the company's GETS business showed resilience, primarily due to successful price adjustments and a 23% growth in air cargo electronic manifest services[80] - Looking ahead, GETS business performance will depend on Hong Kong's external trade environment, with market contraction expected to continue in H2, but the company is confident its full-year contraction will be significantly less than the market's[122] Identity Management Business The Identity Management business achieved impressive growth in H1 2023, with revenue increasing 31.9% year-on-year to HKD 29.4 million and segment profit surging over 1.7 times to HKD 6.6 million, driven by eKYC and PKI-related projects following 2022 R&D investments Identity Management Business Performance (H1 2023 vs H1 2022) | Metric | H1 2023 (HKD millions) | H1 2022 (HKD millions) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Revenue | 29.4 | 22.3 | +31.9% | | Segment Profit | 6.6 | 2.4 | +175% | - Project revenue reached HKD 15.2 million, with eKYC and PKI-related projects contributing approximately 45% and 41% respectively, and PKI project revenue surging over 3.5 times year-on-year, primarily from new digital signature solution orders for private hospitals[108] - The company remains optimistic about H2 prospects, actively promoting digital signature solutions to the healthcare, government, and financial sectors, leveraging its unique position as Hong Kong's sole recognized commercial certification authority[125] Other Services Business Other Services business recorded total revenue of HKD 16.6 million in H1 2023, a slight 5.6% year-on-year decrease, yet segment profit grew 8.6% to HKD 10.1 million, despite a 10.9% revenue drop in smart POS business and a 3.0% decline in GETS-related services Other Services Business Performance (H1 2023 vs H1 2022) | Metric | H1 2023 (HKD millions) | H1 2022 (HKD millions) | Year-on-year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 16.6 | 17.6 | -5.6% | | Segment Profit | 10.1 | 9.3 | +8.6% | - The decline in smart POS business revenue was mainly due to reduced device orders from major banking clients, while GETS-related services benefited from the resumption of cross-border freight and securing a government Single Window telephone inquiry center service contract[111][127] - The increase in segment profit was attributed to lower procurement and staff costs in the smart POS business following the completion of a large project last year[113] Financial Review The Group's total revenue for H1 2023 was HKD 124.9 million, a slight 0.4% year-on-year decrease, with operating profit at HKD 33.4 million, down 10.6%, but unaudited profit after tax surged to HKD 38.8 million, over 2.6 times the prior period, due to significantly improved investment income - Operating profit decreased by 10.6% to HKD 33.4 million[130] - Net other income of HKD 10.8 million was recorded, compared to a net other loss of HKD 19.7 million in the prior period, primarily due to no financial investment losses and a significant increase in interest income in H1[131] - Profit after tax was HKD 38.8 million, over 2.6 times the HKD 14.6 million in the prior period, mainly due to a lower comparative base last year[132] Liquidity and Financial Position As at June 30, 2023, the Group maintained a strong financial position with total cash and bank balances of HKD 417.3 million and no bank borrowings, with net assets at HKD 344.6 million and capital commitments primarily for computer equipment totaling HKD 3.2 million Key Financial Position Data | Metric | As at June 30, 2023 | As at December 31, 2022 | | :--- | :--- | :--- | | Total Cash and Bank Balances | HKD 417.3 million | HKD 436.5 million | | Total Assets | HKD 510.6 million | HKD 532.6 million | | Net Assets | HKD 344.6 million | HKD 364.4 million | | Bank Borrowings | None | None | - The Group provided two bank guarantees totaling HKD 2.2 million to the government, collateralized by equivalent deposits[165] Notes to Financial Statements Basis of Preparation & Changes in Accounting Policies This unaudited interim financial report, reviewed by KPMG, complies with HKAS 34, with consistent accounting policies and no significant impact from new HKFRS standards, while the company assesses the accounting implications of new MPF and long service payment offset mechanism guidelines - The interim financial report, though unaudited, has been reviewed by KPMG in accordance with Hong Kong Standard on Review Engagements 2410[13] - Revisions to HKAS 8, HKAS 12, and HKFRS 17 were adopted during the period, but these changes had no significant impact on the financial report[27][29] - The Group is evaluating the accounting impact of new HKICPA guidelines regarding the abolition of the MPF and long service payment offset mechanism, with the impact currently not reasonably estimable[32][33][51] Segment Reporting The Group's operations are divided into three reportable segments: e-Commerce, Identity Management, and Other Services, with e-Commerce being the largest revenue contributor but experiencing a decline in segment profit, while Identity Management saw significant revenue and profit growth, and Other Services had a slight revenue decrease but increased profit Segment Results Summary (For the six months ended June 30, 2023) | Segment | External Revenue (HKD thousands) | Reportable Segment Profit (HKD thousands) | | :--- | :--- | :--- | | e-Commerce | 78,960 | 21,063 | | Identity Management | 29,388 | 6,622 | | Other Services | 16,572 | 10,051 | | Total | 124,920 | 37,736 | Segment Results Summary (For the six months ended June 30, 2022) | Segment | External Revenue (HKD thousands) | Reportable Segment Profit (HKD thousands) | | :--- | :--- | :--- | | e-Commerce | 85,627 | 29,855 | | Identity Management | 22,274 | 2,430 | | Other Services | 17,558 | 9,257 | | Total | 125,459 | 41,542 | Taxation For the six months ended June 30, 2023, the Group's income tax expense was HKD 5.34 million, higher than HKD 3.01 million in the prior period, primarily due to increased current tax and a larger deferred tax credit in the comparative period Composition of Income Tax Expense | Item | For the six months ended June 30, 2023 (HKD thousands) | For the six months ended June 30, 2022 (HKD thousands) | | :--- | :--- | :--- | | Current Tax - Hong Kong Profits Tax | 5,264 | 6,414 | | Deferred Tax | 80 | (3,403) | | Income Tax Expense | 5,344 | 3,011 | - The Group's Hong Kong Profits Tax is calculated under a two-tiered tax rate system, with the first HKD 2 million of assessable profits taxed at 8.25% and the remainder at 16.5%[65][90] Earnings Per Share For the six months ended June 30, 2023, basic earnings per share was 4.89 HK cents, higher than 1.83 HK cents in the prior period, with diluted earnings per share being the same as basic earnings per share due to the absence of dilutive potential ordinary shares during the period - Basic earnings per share is calculated based on profit attributable to equity holders of the Company of HKD 38,840,000 and the weighted average number of ordinary shares outstanding of 794,634,000[66] - Diluted earnings per share calculation considers the potential dilutive effect of share option schemes, but it is the same as basic earnings per share due to no dilutive effect during the period[92][161] Other Information Corporate Governance The company is committed to maintaining high corporate governance standards, complying with all code provisions of the Corporate Governance Code in Appendix 14 of the Listing Rules during the reporting period, with the interim results reviewed by external auditors and the audit committee, though unaudited - The company confirms continuous compliance with all code provisions of the Corporate Governance Code for the six months ended June 30, 2023[152] - All Directors complied with the Model Code for Securities Transactions by Directors of Listed Issuers during the period[157] - The interim financial report, though unaudited, has been reviewed by the company's external auditor, KPMG, and the company's Audit Committee[173] Share-related Information During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities, while the company's 2014 share option scheme saw options granted during the period - For the six months ended June 30, 2023, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[179] - The company adopted a share option scheme on May 9, 2014, and granted 6,800,000 share options to directors, senior management, and employees on April 21, 2023[79] - To qualify for the interim dividend, share transfers must be registered by 4:30 p.m. on September 22, 2023[133]