Financial Performance - For the six months ended December 31, 2023, the Group's revenue was approximately HK$27.0 million, a decrease of approximately 29.3% compared to HK$38.2 million for the same period in 2022[17]. - Gross profit for the same period was approximately HK$15.8 million, representing an increase of approximately 177.2% from HK$5.7 million in the previous year[17]. - The Group achieved a net profit of approximately HK$6.7 million, a significant turnaround from a net loss of HK$10.9 million in the prior period[17]. - Revenue for the six months ended December 31, 2023, was HK$26,983,000, a decrease of 29.4% compared to HK$38,154,000 for the same period in 2022[111]. - Gross profit increased to HK$15,763,000, up 175.5% from HK$5,723,000 year-on-year[111]. - Profit before income tax for the period was HK$6,722,000, compared to a loss of HK$10,939,000 in the previous year[111]. - Basic and diluted earnings per share improved to 5.40 HK cents, compared to a loss of 14.90 HK cents in the prior period[111]. Revenue Breakdown - Revenue from sales of millwork and furniture was HK$1,699,000, down 76.1% from HK$7,116,000 in the previous year[146]. - Income from interior solutions projects was HK$25,207,000, a decrease of 11.5% from HK$28,586,000 in the prior year[146]. - Maintenance service income decreased to HK$54,000 from HK$548,000, reflecting a decline of 90.2%[146]. - Design and project consultancy service income fell to HK$23,000 from HK$1,904,000, a decrease of 98.8%[146]. - The Group's revenue from external customers in Hong Kong was HK$22,169,000, an increase of 90.5% from HK$11,606,000 in the previous year[142]. - Revenue from the People's Republic of China (excluding Hong Kong) was HK$4,804,000, a significant decrease of 78.4% from HK$22,197,000 in the prior year[142]. Cost Management - Direct costs decreased by approximately 65.4% from approximately HK$32.4 million for the six months ended December 31, 2022, to approximately HK$11.2 million for the current period[35]. - Administrative expenses decreased to approximately HK$9.6 million for the Period, down from approximately HK$16.1 million for the six months ended 31 December 2022, primarily due to reduced employee benefits expenses[44]. - Employee benefit expenses decreased to HK$5,910,000 in 2023 from HK$10,327,000 in 2022, a reduction of 42.9%[154]. Strategic Focus and Market Outlook - The management has focused on developing local business in the PRC, Hong Kong, and Macau, establishing new relationships with internationally recognized luxury brands and property developers[19]. - The Group is optimistic about the future potential in the PRC market due to the significant development opportunities for luxury brands[19]. - The management is actively seeking potential acquisition targets that may synergize with the existing business for ongoing strategic growth[27]. - The Group has observed positive results from its efforts to explore business opportunities in the PRC market, establishing numerous relationships with new clients[24]. - The management will continue to monitor the impact of the COVID-19 pandemic on operations and results[23]. Financial Position and Capital Structure - The Group's cash and bank balances increased to approximately HK$38.4 million as of 31 December 2023, compared to approximately HK$31.0 million as of 30 June 2023[48]. - As of 31 December 2023, the Group had other borrowings of approximately HK$46.9 million, down from HK$70.9 million as of 30 June 2023, and shareholder's loans of approximately HK$30.0 million[58]. - The Group's total borrowings as of December 31, 2023, were HK$76,000,000, with an interest rate of 2% per annum from CGH prior to the assignment of loans[184]. - The Group's capital structure has been adjusted through share consolidation and new share placements, enhancing its financial flexibility[187]. - The Group's shareholder loans amounted to HK$30,000,000 as of December 31, 2023, compared to nil as of June 30, 2023, indicating a significant increase[184]. Governance and Compliance - The company has complied with the Model Code for Securities Transactions, confirming adherence by all directors during the reporting period[92]. - The Group is committed to high standards of corporate governance, having adopted the Corporate Governance Code provisions[99]. - The company has appointed new directors, enhancing its governance structure and oversight[105]. - The Audit Committee reviewed the unaudited interim results and confirmed compliance with applicable accounting standards and Listing Rules[106]. Shareholder Information - The Group did not declare any interim dividend for the Period, consistent with the six months ended 31 December 2022[61]. - The total number of issued and fully paid shares increased to 129,600,000 as of December 31, 2023, from 86,400,000 as of June 30, 2023, representing a growth of 49.9%[187]. - The company proposed a capital reduction on November 20, 2023, reducing the par value of each issued share from HK$0.40 to HK$0.01, aimed at offsetting accumulated losses[196].
易纬集团(03893) - 2024 - 中期财报