Financial Performance - For the six months ended June 30, 2023, the revenue was HKD 18,512 million, an increase from HKD 17,186 million in the same period of 2022[2] - Gross profit for the same period was HKD 1,327 million, down from HKD 1,457 million year-on-year, representing a decrease of approximately 8.9%[3] - The profit attributable to equity shareholders for the six months was HKD 845 million, compared to HKD 703 million in the previous year, reflecting an increase of about 20.2%[2] - Basic and diluted earnings per share for the period were HKD 0.314, up from HKD 0.246 in the same period last year, marking an increase of approximately 27.6%[3] - Operating profit for the six months was HKD 1,060 million, compared to HKD 945 million in the previous year, indicating a growth of about 12.2%[3] - Total comprehensive income for the period was HKD 704 million, significantly higher than HKD 431 million in the same period of 2022, representing an increase of approximately 62.9%[4] - The company's EBITDA for the first half of 2023 was HKD 1,292,278,000, compared to HKD 1,134,399,000 in the same period of 2022, reflecting a growth of 13.9%[16] - The consolidated profit before tax for the same period was HKD 1,073,030,000, up from HKD 845,079,000, reflecting a growth of 27%[17] Revenue Breakdown - For the six months ended June 30, 2023, total revenue reached HKD 18,512,471,000, a 10.3% increase from HKD 16,782,124,000 in the same period of 2022[11] - Coal revenue amounted to HKD 14,061,455,000, up 7.6% from HKD 13,066,549,000 year-on-year[11] - Supply chain services revenue surged to HKD 3,072,510,000, a significant increase of 134.0% compared to HKD 1,309,839,000 in the previous year[11] - The geographical revenue breakdown shows that China (including Hong Kong, Macau, and Taiwan) contributed HKD 14,430,553,000, up from HKD 12,105,899,000 in the previous year[12] - The company generated approximately HKD 15,389 million from supply chain trading operations, accounting for 83.13% of total revenue[48] Assets and Liabilities - Non-current assets as of June 30, 2023, totaled HKD 4,285 million, a slight decrease from HKD 4,371 million at the end of 2022[5] - Current assets amounted to HKD 8,884 million, down from HKD 8,923 million at the end of 2022, reflecting a decrease of about 0.4%[5] - Total assets reported as of June 30, 2023, were HKD 14,376,664,000, slightly down from HKD 14,375,502,000 as of December 31, 2022[14] - Total liabilities as of June 30, 2023, were HKD 6,725,176,000, a decrease from HKD 7,048,844,000 at the end of the previous year[15] - The total liabilities increased to HKD 5,065,100 as of June 30, 2023, compared to HKD 3,806,854 at the end of 2022[35] Equity and Dividends - The total equity attributable to equity shareholders increased to HKD 7,301 million from HKD 6,919 million at the end of 2022, showing an increase of approximately 5.5%[6] - The company declared an interim dividend of HKD 0.078 per share, totaling approximately HKD 211 million[2] - The company declared an interim cash dividend of HKD 0.078 per share, totaling approximately HKD 211 million, expected to be distributed around January 16, 2024[89] Operational Efficiency - Employee costs for the six months ended June 30, 2023, totaled HKD 390,090,000, a decrease of 14% from HKD 453,682,000 in 2022[20] - The total financing costs for the period were HKD 54,210,000, significantly reduced from HKD 169,105,000 in 2022[19] - The company actively manages working capital by reducing inventory and accounts receivable levels to improve cash turnover[74] - The company's accounts receivable turnover days and accounts payable turnover days were both approximately 27 days, while inventory turnover days were about 15 days, indicating efficient working capital management[66] Investments and Acquisitions - The company acquired a 30% stake in TTJV for $24 million, expanding its supply chain services upstream[28] - On July 12, 2023, the company’s subsidiary agreed to acquire 131 office units in Zhuhai, Guangdong, for a total consideration of approximately RMB 218.89 million[90] - On August 4, 2023, the subsidiary entered into a property purchase agreement for a 2,239.42 square meter unit in Zhuhai for RMB 70.10 million[90] Risk Management - The company has adopted foreign exchange derivatives to hedge against currency fluctuations, particularly between USD and RMB[79] - The company has made a provision of approximately HKD 293.872 million (USD 37.5 million) related to a claim from a supplier regarding an unfulfilled procurement contract[37] Corporate Governance - The company has fully complied with the corporate governance code, except for a deviation regarding the separation of the roles of Chairman and CEO[91] - The company’s audit committee reviewed the interim results for the six months ended June 30, 2023, which were not audited but reviewed by KPMG[93] - The company’s board of directors includes four executive directors and three independent non-executive directors, ensuring appropriate checks and balances[91]
易大宗(01733) - 2023 - 中期业绩