Interim Report 2019

30 Hop Fung Group Holdings Limited Interim Report 2019 MANAGEMENT DISCUSSION AND ANALYSIS (continued) 管理層討論及分析 （續） BUSINESS REVIEW (continued) The Group’s revenue in the first half of 2019 fell by 6.6% compared to the first half of 2018, primarily due to lower average selling prices and a fall in the Renminbi exchange rate, which was not fully offset by an increase in the total sales volume. Upstream containerboard and downstream corrugated packaging business accounted for 49.6% and 50.4% of total revenue respectively. In the first half of 2019, upstream and downstream revenue rose by 63.2% and fell by 34.3%, respectively, compared to the same period of last year. Given lower production costs in the first half of 2019, the Group’s inventory, trade receivables and trade payables all fell at the end of June 2019, and our inventory levels decreased significantly due to a lack of wastepaper for production. Given the Group’s strong working capital situation, the Group’s total gearing ratio remained extremely low at the end of June 2019, and was in a net cash position (total bank balances and cash exceeding total bank borrowings), with minimal bad debts and as a whole on a very solid financial footing. FINANCIAL REVIEW Operating results Revenue fell from HK$638.9 million in the first half of 2018 to HK$596.9 million in the first half of 2019. Such a 6.6% decrease was primarily due to average selling price reduction in the first half of 2019, though the overall sales volume rose. The extent of the fall in selling price was larger than that in cost of sales, leading to a drop in gross profit of 22.3%. Gross profit fell from HK$90.5 million to HK$70.3 million. Gross profit margin decreased from 14.2% to 11.8%. Other income fell HK$2.3 million, from HK$13.4 million to HK$11.1 million. It was mainly arisen from less tax refund from the PRC Government in the first half of 2019. 業務回顧 （續） 集團於二零一九年上半年的收益比二 零一八年上半年的收益下降了 6.6% ， 主因是集團平均賣價下降及人民幣匯 率跌幅較大，縱使總銷量有所上升也 未能抵銷價格及匯率之跌幅。上游箱 板紙及下游瓦楞包裝之業務分別佔 總收益 49.6% 及 50.4% 。二零一九年 上半年之上游收益及下游收益與去 年同期相比，分別上升 63.2% 及下跌 34.3% 。 由於製造成本的價格於二零一九年上 半年回落，集團於二零一九年六月底 之存貨、貿易應收賬及貿易應付賬也 相應減少。集團之存貨量也大幅度減 少，主要是沒有足夠的廢紙作生產之 用。基於集團營運資金充裕，故集團 於二零一九年六月底總負債率仍然處 於極低的水平，還出現淨現金（銀行結 餘及現金總額高於銀行借貸總額）的情 況，而壞賬率也接近零，財務狀況非 常穩健。 財務回顧 經營業績 收 益 由 二 零 一 八 年 上 半 年 之 638,900,000 港元跌至二零一九年上 半年之 596,900,000 港元。出現 6.6% 跌幅，主要由於二零一九年上半年的 整體銷售量雖然上升，惟平均售價則 下跌所致。售價的跌幅較銷售成本的 跌幅為大，以致毛利減少 22.3% 。毛 利由 90,500,000 港元跌至 70,300,000 港元。毛利率由 14.2% 跌至 11.8% 。 其 他 收 入 由 13,400,000 港 元 減 少 2,300,000 港元至 11,100,000 港元。 此乃由於中國政府在二零一九年上半 年退稅較少所致。