Financial Performance - For the six months ended June 30, 2023, revenue was approximately HKD 1,906.7 million, a decrease of about HKD 371.8 million or approximately 16.3% compared to HKD 2,278.5 million for the same period in 2022[31]. - The company's operating profit before tax was HKD 188.8 million for the six months ended June 30, 2023[14]. - The company's net profit attributable to shareholders for the six months ended June 30, 2023, was approximately HKD 138.6 million, a decrease of about 17.7% from HKD 168.4 million in the same period in 2022[61][72]. - The group's EBITDA for the six months ended June 30, 2023, was approximately HKD 387.7 million, down from HKD 403.1 million for the same period in 2022[41]. - The gross profit for the same period was approximately HKD 401.0 million, down about 12.1% from HKD 456.1 million, with a gross margin of approximately 21.0% compared to 20.0% in the previous year[94]. - The basic earnings per share for the six months ended June 30, 2023, was approximately HKD 0.1333, down about 17.7% from HKD 0.1619 for the same period in 2022[94]. Revenue Breakdown - Sales revenue for the largest business segment, sportswear and elastic fabric, decreased from HKD 1,046.7 million for the six months ended June 30, 2022, to HKD 958.6 million for the same period in 2023, a decline of approximately 8.4%[32]. - Revenue from elastic fabric sales reached HKD 1,487,165,000, while lace sales contributed HKD 32,578,000, totaling HKD 1,519,743,000 for the period[108]. - Sales revenue from elastic fabric materials for the underwear segment totaled approximately HKD 528.6 million, a decrease of about HKD 145.4 million or 21.6% compared to the same period in 2022[193]. - Revenue from elastic bands for the same six-month period was approximately HKD 387.0 million, down about HKD 132.3 million or 25.5% year-on-year[193]. Expenses and Costs - For the six months ended June 30, 2023, the group's cost of sales was approximately HKD 1,505.7 million, a decrease of about HKD 316.6 million or approximately 17.4% compared to the same period in 2022[33]. - The income tax expense for the six months ended June 30, 2023, was approximately HKD 19.3 million, compared to HKD 20.9 million for the same period in 2022, with an effective tax rate of approximately 14.0%[39]. - Administrative expenses accounted for approximately 6.5% of total revenue for the six months ended June 30, 2023, up from approximately 6.3% for the same period in 2022, primarily due to a decrease in business scale[199]. - Research and development expenses represented approximately 2.1% of total revenue for the six months ended June 30, 2023, down from approximately 2.4% for the same period in 2022[200]. Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.053 per ordinary share for the six months ended June 30, 2023, compared to HKD 0.0728 per ordinary share for the same period in 2022[20]. - The company declared a final dividend of HKD 43,880,000, compared to HKD 122,697,000 in the previous year, reflecting a decrease of approximately 64.2%[117]. Assets and Liabilities - The net asset liability ratio decreased to 24.2% as of June 30, 2023, down from 30.0% as of December 31, 2022[28]. - The group recorded a net debt of approximately HKD 753.2 million as of June 30, 2023, compared to HKD 941.7 million as of December 31, 2022[94]. - As of June 30, 2023, total assets decreased to HKD 3,600,836,000 from HKD 3,371,711,000 as of December 31, 2022, reflecting a decline of approximately 6.7%[99]. - Current liabilities decreased significantly to HKD 2,155,634,000 from HKD 2,900,945,000, a reduction of about 25.6%[99]. - The total amount of trade receivables and notes receivable as of June 30, 2023, was HKD 590.2 million, compared to HKD 654.7 million as of December 31, 2022[151]. Market Conditions and Challenges - The company faced significant challenges in the global business environment due to rising interest rates, persistent inflation, and geopolitical tensions[60]. - The International Monetary Fund has revised the global GDP growth forecast for 2023 down to 2.8%, indicating a challenging economic environment[48]. - The company’s subsidiaries in Sri Lanka recorded a decline in sales during the first half of 2023 due to the negative impact of global economic slowdown[30]. - The company has continued to face challenges in the market, leading to conservative order placements by international brand customers since the second half of 2022[125]. Operational Efficiency and Strategies - The group plans to further enhance operational efficiency in overseas production bases in Vietnam and Sri Lanka to align with customer interests[178]. - The group anticipates a recovery in order volumes in the coming months as apparel brand customers are expected to actively replenish inventory[177]. - The group has maintained a cautious approach to capital investments while focusing on international business strategies as a core advantage[178]. - The company has implemented strategies to manage high inventory levels amid ongoing market uncertainties[125].
超盈国际控股(02111) - 2023 - 中期业绩