2023-12-15-港交所-东京中央拍卖_二零二三年中期报告_58页_2mb

Company Information:

• Incorporated in Hong Kong with limited liability.
• Traded stock code is 2023.
• Primary business is auction house of Chinese and Japanese artworks.

Chairman's Statement:

• Report period: 1 Jan 2023 to 30 Sep 2023 vs 1 Jan 2022 to 30 Sep 2022.
• Revenue and profit decreased due to global economic uncertainties.
• Strategy includes diversification into contemporary artwork and jewelry, enhancing online auction reach, and improving operational efficiency.

Management Discussion and Analysis (Q2 2023 vs Q2 2022):

• Revenue: HKD 32.2M (vs HKD 45.4M), decrease of 29.1%.
• Gross profit: HKD 29.5M (vs 37.4M), decrease of 21.1%; margin improved to 91.6%.
• Operating profit: HKD 2.2M (vs 10.4M), decrease.
• Government grants, forfeited deposits, penalties, and handling fees provided HKD 231K (vs 585K, year ago).
• Selling/distribution expenses: HKD 10.9M (vs 11.9M); Administrative expenses: HKD 16.6M (vs 15.4M) increase.
• Finance income: HKD 130K (vs 31K); Finance costs: HKD 243K (vs 581K).
• Profit attributable to shareholders: HKD 1.6M (vs 7.6M), significant drop.

Financial Highlights (Q2 2023 Half-Year):

• Net cash provided by operating activities: HKD 32.1M.
• Earnings per share (basic and diluted): HKD 0.32 cents.

Corporate Governance:

• Board committees: Audit, Remuneration, nomination, and corporate governance.
• Key committees are chaired by independent directors.

Governance and Remuneration:

• The Chairman highlighted commitment to shareholder value and evolving market conditions.
• Discussed the treasury policy and exchange rate risk management.

Stock Performance & Dividend:

• Net proceeds from IPO partially utilized (incl. expansion, marketing, recruitment, ERP system, working capital).
• Mid-term dividend not recommended.

Financial Summary (Balance Sheet Sep 2023):

• Assets: Total assets HKD 436M, gross profit margin 18.8% (trailing six months, reporting in full-year context).
• Liabilities: Current liabilities reached HKD 146.5M, non-current impact amortization etc.
• Governance not material contingent liabilities.

Other Information:

• High dependence on Hong Kong & Japan market (76% of revenue in Sep'23).
• Focus on expanding revenue channels and online platforms.