益美国际控股(01870) - 2023 - 中期业绩

Financial Highlights Financial Highlights For the six months ended June 30, 2023, revenue slightly decreased, but gross profit and margin significantly improved, leading to a net profit of HK$9.1 million, reversing a prior-year loss due to discontinued operations 2023 Interim Financial Highlights (For the Six Months Ended June 30) | Metric | 2023 (Unaudited) (HKD Thousands) | 2022 (Unaudited, Restated) (HKD Thousands) | | :--- | :--- | :--- | | Revenue | 75,678 | 77,800 | | Gross Profit | 24,539 | 15,226 | | Gross Margin | 32.4% | 19.6% | | Profit from Continuing Operations | 9,094 | 2,787 | | Profit/(Loss) for the Period | 9,094 | (61,864) | - Basic earnings per share from continuing operations significantly increased to 1.58 HK cents from 0.46 HK cents in the prior year, while the prior year's basic loss per share was 9.90 HK cents due to substantial losses from discontinued operations[9][77] Condensed Interim Consolidated Financial Statements Condensed Interim Consolidated Statement of Profit or Loss The Group reported revenue of HK$75.68 million, gross profit of HK$24.54 million, and a significant increase in operating profit to HK$13.34 million, achieving a net profit of HK$9.09 million, reversing a prior-year loss from discontinued operations Condensed Interim Consolidated Statement of Profit or Loss | Item | 2023 H1 (HKD Thousands) | 2022 H1 (HKD Thousands, Restated) | | :--- | :--- | :--- | | Revenue | 75,678 | 77,800 | | Gross Profit | 24,539 | 15,226 | | Operating Profit | 13,343 | 6,562 | | Profit Before Income Tax | 11,952 | 5,528 | | Profit from Continuing Operations | 9,094 | 2,787 | | Loss from Discontinued Operations | – | (64,651) | | Profit/(Loss) for the Period | 9,094 | (61,864) | Condensed Interim Consolidated Statement of Financial Position As of June 30, 2023, total assets increased to HK$172.5 million, total equity rose to HK$96.2 million due to current period profit, and total liabilities remained stable at approximately HK$76.3 million Statement of Financial Position Summary | Item | June 30, 2023 (HKD Thousands) | December 31, 2022 (HKD Thousands) | | :--- | :--- | :--- | | Total Assets | 172,519 | 160,749 | | Total Liabilities | 76,334 | 75,582 | | Total Equity | 96,185 | 85,167 | Notes to the Condensed Interim Consolidated Financial Information General Information and Basis of Preparation This financial information is prepared under HKAS 34, with the Group primarily engaged in permanent gondola and green new energy businesses, and the curtain wall engineering business terminated in 2022 - The Group's core businesses include the Permanent Gondola Business, providing design and build solutions for permanent gondolas, and the Green New Energy Business, related to new energy power generation and storage systems[19][43][23] - The Curtain Wall Engineering Business (Yick Mei Engineering) was terminated for the year ended December 31, 2022, and its financial data is classified as discontinued operations in the statements[21][68] Revenue and Segment Information For the period, continuing operations revenue was HK$75.68 million, primarily from the permanent gondola business, with Hong Kong being the main geographical revenue source at HK$64.53 million Revenue by Business Segment (Continuing Operations) | Business Segment | 2023 H1 (HKD Thousands) | 2022 H1 (HKD Thousands) | | :--- | :--- | :--- | | Permanent Gondola Business | 75,576 | 77,464 | | Green New Energy Business | 102 | 336 | | Total | 75,678 | 77,800 | Revenue by Geographical Location of Customers (Continuing Operations) | Region | 2023 H1 (HKD Thousands) | 2022 H1 (HKD Thousands) | | :--- | :--- | :--- | | Hong Kong | 64,529 | 76,060 | | Macau | 11,047 | 1,404 | | Malaysia | – | 336 | | Others | 102 | – | | Total | 75,678 | 77,800 | Dividends The Board does not recommend any interim dividend for the six months ended June 30, 2023, consistent with the prior year's policy - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2023[6][76][130] Earnings/(Loss) Per Share Basic earnings per share from continuing operations significantly increased to 1.58 HK cents, with total basic EPS also 1.58 HK cents due to no discontinued operations loss, compared to a 9.90 HK cents loss last year, and no potential dilutive shares Basic Earnings/(Loss) Per Share | Item | 2023 H1 (HK Cents) | 2022 H1 (HK Cents) | | :--- | :--- | :--- | | Basic earnings per share from continuing operations | 1.58 | 0.46 | | Loss per share from discontinued operations | – | (10.36) | | Basic Earnings/(Loss) Per Share | 1.58 | (9.90) | - As of June 30, 2023, the company had no potential dilutive shares, thus diluted earnings per share were the same as basic earnings per share[78] Management Discussion and Analysis Business Review The Group's core businesses are permanent gondola engineering and new energy systems; despite a slight revenue decrease, gross and net profits significantly grew due to increased change order profitability and the termination of the loss-making curtain wall engineering business in 2022 - Due to persistent losses and uncertain prospects, the sole shareholder of Yick Mei Engineering decided to terminate the business via creditors' voluntary winding-up, ceasing to be a subsidiary of the Company from December 9, 2022[61][85] - Despite a slight revenue decrease, net profit from continuing operations increased from HK$2.8 million to HK$9.1 million, primarily due to improved profitability of engineering change orders and the absence of prior-year share-based payment expenses[110] Financial Review This section analyzes the Group's financial performance, noting a slight revenue decrease, a significant gross margin increase, higher administrative expenses due to new energy business, increased finance costs, and a net profit of HK$9.1 million, reversing a prior-year loss Revenue Revenue for the period was approximately HK$75.7 million, a slight 2.7% decrease year-on-year, primarily due to fewer permanent gondola installations and intense pricing competition amid a sluggish Hong Kong economy - Revenue slightly decreased by 2.7% to HK$75.7 million from HK$77.8 million in the prior period[1][110] Gross Profit and Gross Margin The Group's gross profit significantly increased from HK$15.2 million to HK$24.5 million, with gross margin rising from 19.6% to 32.4%, primarily driven by higher volume and profitability of change orders in the permanent gondola business - Gross profit significantly increased from approximately HK$15.2 million to HK$24.5 million, and gross margin improved from 19.6% to 32.4%[113] Administrative Expenses Administrative expenses increased by 22.7% year-on-year to HK$11 million, primarily due to higher depreciation, legal and professional fees, and travel expenses from developing the green new energy business - Administrative expenses increased by 22.7% to approximately HK$11 million from approximately HK$9 million in the prior period[114] Net Profit/(Loss) for the Period The Group recorded a net profit of approximately HK$9.1 million for the period, reversing a net loss of approximately HK$61.9 million in the prior period, which primarily included a HK$64.7 million loss from discontinued operations, now absent - The Group recorded a net profit of approximately HK$9.1 million for the period, compared to a net loss of approximately HK$61.9 million in the 2022 prior period, primarily due to discontinued operations[94] Outlook Given the uncertain outlook for Hong Kong's property and construction sectors, the Group will adjust its permanent gondola business strategy while actively developing its green new energy business, promoting its 'SUNEWTRAL' brand, and potentially seeking additional funding - The outlook for Hong Kong's property and construction sectors remains uncertain, and the Group will continue to closely monitor market conditions for the sustainable development of its permanent gondola business[111] - The Group aims to capitalize on renewable energy opportunities by actively developing its green new energy business, promoting its proprietary brand 'SUNEWTRAL', and potentially raising additional capital for this endeavor[87] Liquidity, Financial Resources and Capital Structure The Group maintains prudent financial management; as of June 30, 2023, total borrowings were approximately HK$46.3 million, with the gearing ratio decreasing to 51.1% due to increased equity, and operating funds supported by extended loan agreements with major shareholders - The gearing ratio decreased from 56.3% at the end of 2022 to approximately 51.1% as of June 30, 2023[140] - As of June 30, 2023, the Group's total borrowings were approximately HK$46.3 million, all denominated in Hong Kong Dollars[120] - The Group entered into loan agreements with its major shareholder Treasure Ship and Director Mr. Kwan Kam Tim, extending the repayment date to June 30, 2024[96][119] Contingent Liabilities The Group faces a customer claim of approximately HK$2.86 million, which directors believe has reasonable defense, and provided performance guarantees totaling approximately HK$14.03 million for 24 construction contracts - The Group faces an amended claim from a customer for approximately HK$2.86 million, which the directors believe has a reasonable basis for defense[5] - As of June 30, 2023, the Group had outstanding performance guarantees valued at HK$14.03 million[126][101]