Financial Information

Latest Results Announcement

Condensed Interim Financial Statements For the six months ended 30 June 2021

Condensed Consolidated Statement Of Profit Or Loss For The Six Months Ended 30 June 2021

Condensed Consolidated Statement Of Profit Or Loss And Other Comprehensive Income For The Six Months Ended 30 June 2021

Balance Sheet

Review of Performance

Profit and Loss


The Group's overall revenue increased by HK$108.0 million or 22.0%, from HK$491.9 million in HY 2020 to HK$599.9 million in HY 2021. This was mainly due to the turnaround in global economic activity, from the adverse impact caused by COVID-19 in 2020.

Gross profit and gross profit margin

In HY 2021, the Group’s gross profit increased by 44.9% or HK$13.4 million, generating gross profit margin of 7.2% (HY 2019: 6.1%). This was mainly due to improved economies of scale enjoyed with the higher revenue achieved.

Other Income

The Group’s other income increased by HK$7.9 million or 38.2%, from HK$20.7 million in HY 2020 to HK$28.6 million in HY 2021. This was mainly due to an increase of mold engineering income for new products.

Selling and distribution expenses

The Group’s selling and distribution expenses increased by HK$1.7 million or 32.1%, from HK$5.2 million in HY 2020 to HK$6.9 million in HY 2021. This was mainly due to a increase of transportation expenses, both in line with higher revenue and higher costs related to Covid-19 measures.

Administrative expenses

The Group’s administrative expenses increased by HK$14.4 million or 54.8%, from HK$26.2 million in HY 2020 to HK$40.6 million in HY 2021. This was mainly due to an increase of exchange loss of HK$5.7 million and an increase of bonus of HK$1.6 million.

Finance Costs

Finance costs decreased by HK$3.8 million or 34.6%, from HK$11.0 million in HY 2020 to HK$7.2 million in HY 2021, mainly due to decrease in bank loans.

Income Tax Expenses

Income tax expense decreased HK$0.7 million or 142.3%, from HK$0.5 million in HY 2020 to tax credit of HK$0.2 million in HY 2021. This is due to the tax expenses of over-provision in prior years.

Balance Sheet

Non-current assets

The Group’s non-current assets stood at HK$498.3 million as at 30 June 2021, increased by 6.1% or HK$28.8 million, from HK$469.5 million at 31 December 2020. This was due to an increase in capital expenditure on property, plant and equipment of HK$69.2 million invested in Indonesia, Guangxi and Heyuan manufacturing operations, which were partially offset by total depreciation expenses for property, plant and equipment and right-of-use assets of HK$42.2 million.

Current assets

The Group’s current assets stood at HK$1,111.2 million as at 30 June 2021, a decrease of HK$15.8 million or 1.4%, from HK$1,127.0 million as at 31 December 2020, mainly due to:

  • a decrease in trade and bills receivables of HK$44.0 million;
  • a decrease in inventories of HK$7.3 million;
  • a decrease in financial assets at FVTPL of HK$3.6 million; and
  • a decrease in current tax assets of HK$1.0 million.

which were partially offset by:

  • an increase in contract assets of HK$17.6 million;
  • an increase in prepayments, deposits and other receivables of HK$13.1 million; and
  • an increase in bank and cash balances of HK$9.4 million.
Current liabilities

The Group’s current liabilities stood at HK$858.3 million at 30 June 2021, increased by HK$23.8 million or 2.9%, from HK$834.5 million at 31 December 2020, mainly due to:

  • an increase in trade and bills payables of HK$19.0 million;
  • an increase in dividends payables of HK$9.5 million;
  • an increase in accruals and other payables of HK$8.0 million; and
  • an increase in lease liabilities of HK$3.7 million.

which were offset by:

  • a decrease in short-term borrowings of HK$13.2 million to finance working capital requirements;
  • a decrease in current tax liabilities of HK$2.5 million; and
  • a decrease in financial guarantee contract of HK$0.7 million.
Non-current liabilities

The Group’s non-current liabilities stood at HK$43.2 million as at 30 June 2021, a decrease of HK$22.8 million or 34.6%, from HK$66.1 million as at 31 December 2020 mainly due to decreases in long-term borrowings of HK$16.5 million and lease liabilities of HK$6.3 million.

Cash Flow Analysis

As at 30 June 2021, the Group’s cash resources of HK$66.5 million are considered adequate for current operational needs. The net increase in cash and cash equivalents of HK$4.2 million held by the Group comprised:

  • Net cash generated from operating activities of HK$102.9 million to finance the working capital needs;
  • Net cash used in investing activities of HK$61.9 million mainly due to additions of property, plant and equipment; and
  • Net cash used in financing activities of HK$36.8 million, mainly due to the repayment of loans.


Notwithstanding the disruptions and uncertainties caused by the still-evolving Covid-19 pandemic, the Company has adapted to operate within the constraints of the "new normal". While it is reasonably probable that the Covid-19 pandemic could have an adverse impact, depending on how long and extensive the disruptions last across the entire value chain, we have reinforced and made a number of improvements to enhance the procedures and processes outline in our Business Continuity Plan (including Business Contingency Planning and Operations Response Team) and it is ready to be activated quickly should the need arises.

In Indonesia, we have implemented strict measures including regular rapid tests, co-ordination with the authorities on vaccinations as well as operations scheduling and segregation to protect and ensure the safety of our employees. With the measures taken our plant in Sragen, we will continue to focus on the health and safety of our employees and at the same time, maintain our business operations. To further ramp up capacity, construction of the fourth phase of our planned plant expansion has commenced.

Meanwhile, the Company continues with plans to expand paper product capacities. With the commencement of large-scale manufacturing at our Heyuan plant in the PRC early this year, this new product segment is expected to contribute to the company’s sales in this financial year.

Our Company will also continue to explore solutions for sustainable materials to strengthen existing relationship with customers as strategic partners and to secure stable orders.

Together with ongoing investment in our human capital, we have delivered improved results for the half-year under review and, barring unforeseen circumstances, expect to continue to deliver satisfactory profitable results for the full financial year.