Revenue Performance - For the interim period ended 30 June 2023, the Group recorded a revenue of HK$202.5 million in the toys division, a decrease of 59.3% compared to the same period in 2022[23]. - Overall toy sales in the US, the Group's largest market, declined by over 50% compared to the interim period ended 30 June 2022[20]. - Revenue for the six months ended June 30, 2023, was HK$202,686,000, a decrease of 59% compared to HK$497,188,000 for the same period in 2022[63]. - Revenue from the toy segment decreased by 59.3% to HK$202.5 million, primarily due to reduced procurement orders from major customers in the United States[25]. - The newly introduced agricultural products segment generated revenue of HK$158,000 in H1 2023, marking its first contribution to the Group's revenue[98]. - The total revenue for the Group in H1 2023 was HK$202,686,000, down from HK$497,188,000 in H1 2022, indicating an overall decline of about 59.3%[104]. Profit and Loss - Gross profit for the interim period ended 30 June 2023 amounted to approximately HK$10.9 million, representing a decrease of approximately HK$63.3 million from HK$74.2 million in the same period in 2022[21]. - The Group recorded a loss of approximately HK$21.1 million for the interim period ended 30 June 2023, compared to a profit of approximately HK$13.0 million for the same period in 2022, representing a decrease of approximately HK$34.1 million[22]. - Loss before tax for the period was HK$21,109,000, compared to a profit of HK$13,474,000 in the previous year[63]. - Loss attributable to owners of the Company was HK$21,050,000, a significant decline from a profit of HK$12,986,000 in 2022[63]. - The total comprehensive expense for the period was HK$25,122,000, compared to a total comprehensive income of HK$2,083,000 for the same period in 2022, indicating a significant decline in overall financial health[72]. Financial Position - As of June 30, 2023, the Group's current assets were HK$304,119,000, an increase from HK$218,596,000 as of December 31, 2022[29]. - The Group's borrowings totaled HK$246,284,000 as of June 30, 2023, compared to HK$190,943,000 as of December 31, 2022[30]. - The capital deficiencies attributable to owners of the Company decreased by 9.8% to HK$80,876,000 as of June 30, 2023, from HK$89,648,000 as of December 31, 2022[31]. - The Group's gearing ratio was approximately 122% as of June 30, 2023, down from 134% as of December 31, 2022[34]. - As of June 30, 2023, net current liabilities decreased to HK$179,880,000 from HK$192,768,000 as of December 31, 2022, reflecting a reduction of approximately 6%[69]. - Total assets as of June 30, 2023, amounted to HK$423,907,000, an increase from HK$340,946,000 as of December 31, 2022[107]. Cash Flow and Financing - Cash used in operating activities for the first half of 2023 was HK$123,138,000, a substantial increase from HK$5,293,000 in the prior year, indicating a worsening cash flow situation[75]. - The company raised HK$36,370,000 from the issuance of convertible bonds during the period, contributing to financing activities[75]. - Cash and cash equivalents at the end of the period stood at HK$38,789,000, down from HK$49,575,000 at the end of June 2022, reflecting a decrease of approximately 22%[75]. - The company’s net cash from financing activities was HK$123,202,000 for the first half of 2023, a turnaround from a net cash used of HK$15,163,000 in the same period last year[75]. Inventory and Receivables - The decrease in revenue was primarily due to reduced purchase orders from a major customer based in the USA[23]. - Lower gross profit margin for the interim period was attributed to elevated discounts and writedowns to manage inventory levels[23]. - The Group's trade receivables are expected to be recovered within one year, with credit terms generally ranging from 30 to 60 days[134]. - The total trade receivables as of June 30, 2023, were HK$128,082,000, compared to HK$71,503,000 as of December 31, 2022, representing an increase of 79%[137]. Strategic Initiatives - The Group plans to diversify its businesses and enhance existing operations while exploring new sales opportunities to improve profitability[49]. - The acquisition of a 78.9% equity interest in a Japanese agricultural company is expected to create synergies and better returns for shareholders[50]. - The Group is focused on addressing inventory issues and adapting to market conditions moving forward[19]. Employee and Management Expenses - Employee benefit expenses decreased significantly to HK$47,885,000 in 2023 from HK$118,077,000 in 2022, representing a reduction of approximately 59.5%[122]. - Total remuneration for directors and key executives was HK$2,108,000 for the six months ended June 30, 2023, compared to HK$1,894,000 in 2022, indicating an increase of 11.29%[200]. Debt and Borrowings - The Group's total borrowings included a loan of HK$612,000 at a fixed rate of 2.50% per month from a major shareholder, maturing in one year[169]. - The company has secured bank loans with fixed interest rates ranging from 4.00% to 5.85% per annum, totaling HK$150,672,000 as of June 30, 2023[158]. - The current portion of total borrowings as of June 30, 2023, is HK$246,284,000, up from HK$190,943,000 as of December 31, 2022, marking an increase of approximately 29.1%[158]. Acquisitions - The Group acquired 100% of Huge Advanced Investment Holding Limited for a total cash consideration of HK$1,700,000 on 24 May 2023[167]. - Revenue of approximately HK$158,000 and a net loss of approximately HK$278,000 were contributed by Huge Advanced Group for the period from 24 May 2023 to 30 June 2023[171].
瀛晟科学(00209) - 2023 - 中期财报