Interim Report 2022

Hop Fung Group Holdings Limited Interim Report 2022 36 MANAGEMENT DISCUSSION AND ANALYSIS (continued) FINANCIAL REVIEW (continued) Operating results (continued) Selling and distribution costs decreased from HK$15.8 million to HK$10.3 million. The decrease of 34.8% was attributed to the decrease in transportation costs which was in line with the decrease in revenue in the first half of 2022. Administrative expenses slightly decreased from HK$37.8 million to HK$37.4 million in the first half of 2022. No significant change was recorded. Other expenses decreased from HK$10.8 million to HK$8.5 million. It was mainly due to the decrease in China duties and charges in the first half of 2022. The decrease in finance costs from HK$4.4 million to HK$3.7 million, was owing to lower bank borrowings in the first half of 2022. EBITDA (earnings before interest, tax, depreciation and amortization) decreased HK$96.6 million, from HK$55.0 million to HK$-41.6 million. Loss for the period of HK$83.1 million was recorded in the first half of 2022 while profit for the period of HK$1.1 million was recorded in the first half of 2021. Liquidity, financial and capital resources At 30th June, 2022, the Group’s total cash and cash equivalents were HK$188.1 million (31st December, 2021: HK$246.7 million) which was mostly denominated in Renminbi. Net current assets and current ratio of the Group as at 30th June, 2022 were HK$161.6 million (31st December, 2021: HK$225.0 million) and 1.8 (31st December, 2021: 1.8) respectively. 管理層討論及分析 （續） 財務回顧 （續） 經營業績 （續） 銷售及分銷成本由 15,800,000 港元減少 34.8% 至 10,300,000 港元，乃由於運輸 成本下降所致，這與二零二二年上半年 收益減少的情況相符。 行政開支由 37,800,000 港元輕微減少至 二零二二年上半年之 37,400,000 港元。 並無錄得大幅變動。 其他開支由 10,800,000 港元減少至 8,500,000 港元，主要由於二零二二年 上半年之中國關稅及費用減少所致。 財 務 成 本 由 4,400,000 港 元 減 少 至 3,700,000 港元，乃由於二零二二年上 半年銀行借貸減少所致。 息稅折舊攤銷前盈利（未計利息、 稅 項 、 折 舊 及 攤 銷 前 盈 利 ）由 55,000,000 港元減少 96,600,000 港元 至 -41,600,000 港元。二零二二年上 半年錄得期間虧損 83,100,000 港元， 而二零二一年上半年錄得期間利潤 1,100,000 港元。 流動資金、財務及資本資源 於二零二二年六月三十日，本集團之 現金及現金等值總額為 188,100,000 港元（二零二一年十二月三十一日： 246,700,000 港元），大部分以人民幣列 值。 本集團於二零二二年六月三十日之 流動資產淨值及流動比率分別為 161,600,000 港元（二零二一年十二月 三十一日： 225,000,000 港元）及 1.8 （二 零二一年十二月三十一日： 1.8 ）。