筆 克 遠 東 集 團 有 限 公 司 股份代號 752 (於開曼群島註冊成立之有限公司) 二零二五年中期報告 www.pico.com www.pico.com Stock Code 752 (Incorporated in the Cayman Islands with Limited Liability) Interim Report 2025 Pico Far East Holdings Limited 1 筆克遠東集團有限公司 未經審核中期業績 筆克遠東集團有限公司（「本公司」）之董事會（「董事會」）欣然宣布，本公司及其附屬公司（「本集團」）截至二零二五年四月三十日止六 個月之未經審核簡明綜合業績，連同二零二四年同期之未經審核比較數字如下： 簡明綜合收益表 | | | 截至四月三十日止六個月 | | | --- | --- | --- | --- | | | | 二零二五年 | 二零二四年 | | | | 未經審核 | 未經審核 | | | 附註 | 千港元 | 千港元 | | 收益 | 3 | 3,469,367 | 2,942,002 | | 銷售成本 | | (2,474,935) | (2, ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦不發表 任何聲明，並明確表示，概不就因本公告全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失承擔任 何責任。 PICO FAR EAST HOLDINGS LIMITED （筆克遠東集團有限公司） （於開曼群島註冊成立之有限公司） （股份代號：752） 截至二零二五年四月三十日止六個月之 未經審核中期業績 筆克遠東集團有限公司（「本公司」）之董事會（「董事會」）欣然宣布，本公司及其附屬公司（「本集團」） 截至二零二五年四月三十日止六個月之未經審核簡明綜合業績，連同二零二四年同期之未經審核 比較數字如下： 簡明綜合收益表 截至二零二五年四月三十日止六個月 | | | 截至四月三十日止六個月 | | | --- | --- | --- | --- | | | | 二零二五年 | 二零二四年 | | | | 未經審核 | 未經審核 | | | 附註 | 千港元 | 千港元 | | 收益 | 2 | 3,469,367 | 2,942,002 | | 銷售成本 | | (2,474,935) | (2,070,147) ...

Financial Performance - Revenue for the year ended October 31, 2024, increased to HKD 6,327,002 thousand, up 18.7% from HKD 5,327,931 thousand in 2023[3] - Gross profit rose to HKD 1,942,100 thousand, representing a 22.0% increase compared to HKD 1,590,594 thousand in the previous year[3] - Core operating profit improved to HKD 499,409 thousand, a 38.8% increase from HKD 359,951 thousand in 2023[3] - Net profit for the year reached HKD 368,023 thousand, up 51.0% from HKD 243,731 thousand in the prior year[3] - Basic earnings per share increased to 28.84 cents, compared to 18.41 cents in 2023, reflecting a growth of 56.5%[3] - Total comprehensive income for the year was HKD 410,628 thousand, a significant rise of 53.0% from HKD 268,288 thousand in 2023[4] - Total revenue for the year ended October 31, 2023, was HKD 5,327,931, an increase from HKD 5,141,646 in the previous year[32] - Reported segment profit for the year was HKD 376,342, up from HKD 302,511 in the previous year, reflecting a growth of approximately 24.5%[32] - The company expects total revenue for 2024 to reach HKD 6,691,769, representing a 19.2% increase compared to HKD 5,611,706 in 2023[34] - The total revenue for the fiscal year reached HKD 6.327 billion, an increase of 18.8% compared to HKD 5.328 billion in the previous year[53] Assets and Liabilities - Total assets as of October 31, 2024, amounted to HKD 4,179,415 thousand, an increase from HKD 3,465,765 thousand in 2023[6] - Current liabilities increased to HKD 3,057,024 thousand from HKD 2,336,406 thousand in the previous year, indicating a rise of 30.9%[6] - The company reported a decrease in non-current liabilities to HKD 331,940 thousand from HKD 394,163 thousand, down 15.7%[7] - Shareholders' equity stood at HKD 2,291,917 thousand, slightly up from HKD 2,261,271 thousand in 2023, reflecting a growth of 1.4%[7] - The total assets reported for 2024 are HKD 5,707,137, an increase from HKD 5,060,507 in 2023, indicating a growth of approximately 12.8%[34] - The total liabilities for 2024 increased to HKD 3,388,964 from HKD 2,730,569 in 2023, marking a rise of about 24.1%[34] Revenue Breakdown - The revenue breakdown by major product or service for 2024 includes: Exhibition, Projects, and Brand Activation at HKD 5,438,411 thousand; Visual Brand Activation at HKD 292,981 thousand; Museum and Theme Entertainment at HKD 422,290 thousand; and Conference Planning Activation at HKD 173,320 thousand[23] - Total revenue from customer contracts for the year 2024 was HKD 6,327,002 thousand, an increase from HKD 5,327,931 thousand in 2023, representing a growth of approximately 18.7%[23] - The segment profit for Exhibition, Projects, and Brand Activation was HKD 402,583 thousand, while the total segment profit amounted to HKD 553,324 thousand for the year[30] - The revenue from the museum and theme entertainment segment was HKD 422 million, representing 6.7% of the total group revenue, with a profit of HKD 50.4 million[81] Operational Changes and Strategies - The group adopted the revised Hong Kong Accounting Standard No. 1 and the Practical Guide No. 2 for the first time this year, impacting the disclosure of accounting policies in the consolidated financial statements[10] - The group implemented the revised Hong Kong Accounting Standard No. 12, narrowing the scope of initial recognition exemptions, which primarily affects the disclosure of deferred tax assets and liabilities in the notes to the consolidated financial statements[12] - The group is enhancing operational efficiency by establishing a global partner platform to strengthen supplier and resource management, aiming to control costs and improve gross margins[65] - The company is committed to sustainable development, integrating environmental protection and community support into its core operations[62] - The group is focusing on data-driven growth and digital transformation through the AI-supported PowerOne system, aiming to convert data into assets and enhance sales conversion rates[63] - The company is implementing a talent development model to foster a culture of knowledge sharing and training, utilizing AI tools to match employee skills with project needs[65] Market Presence and Future Outlook - The group anticipates continued growth in global markets, particularly in Southeast Asia and the Middle East, driven by China's Belt and Road Initiative[100] - The group is focusing on delivering high-quality services in exhibitions and brand activations to maintain sustainable growth[101] - Key projects include the China International Machine Tool Exhibition in Beijing and the Guangzhou International Auto Show, among others, indicating a strong market presence[102] - The group is leveraging data-driven strategies to gain a competitive advantage and expects to maintain growth in the coming years[110] Corporate Governance - The company has adhered to the corporate governance code but deviated from the separation of the roles of Chairman and CEO, which are held by the same individual[117] - The board consists of five independent non-executive directors, ensuring a balance of power[117] - The company has adopted the standard code of conduct for directors' securities transactions and confirmed compliance for the fiscal year ending October 31, 2024[119] - The audit committee has reviewed the accounting principles and internal controls, discussing financial reporting matters[120] Employee and Operational Metrics - The group employed approximately 2,700 full-time staff and operated in 36 cities across 22 countries, focusing on integrated brand experiences through content, community, creativity, and data strategies[58] - The group’s cash balance net of external interest-bearing borrowings was HKD 1.512 billion, an increase from HKD 904 million[89] - The group’s debt-to-asset ratio was 4.29%, down from 6.20% in the previous year[91] - The group employed approximately 2,700 full-time employees, with total employee costs amounting to HKD 1.4 billion[94]

Pico Far East Holdings Limited www.pico.com www.pico.com 截至二零二四年四月三十日止六個月 未經審核中期業績 簡明綜合收益表 | --- | --- | --- | --- | |------------------------------------------|-------|-------------------------------------------------------------|--------------------------------| | | 附註 | 截至四月三十日止六個月 \n二零二四年 \n未經審核 \n千港元 | 二零二三年 \n未經審核 \n千港元 | | | | | | | 收益 | 3 | 2,942,002 | 2,493,180 | | 銷售成本 | | (2,070,147) | (1,790,425) | | | | | | | 毛利 | | 871,855 | 702,755 | | 其他收入 | | 129,010 | 68,805 | | 分銷成本 | | (353,174) | (304,6 ...

本集團之酬金政策乃按個別僱員之表現及根據各地區之薪酬趨勢而制訂，並將每年定 期檢討。除公積金計劃及醫療保險外，亦會根據個別僱員之表現評估而給予僱員酌情 花紅及僱員購股權。 資產抵押 於二零二四年四月三十日，以下資產已被抵押作為若干銀行向本集團授出信貸融資之 抵押品。 | --- | --- | --- | |--------------------|------------|--------------| | | | | | | 二零二四年 | 二零二三年 | | | 四月三十日 | 十月三十一日 | | | 未經審核 | 經審核 | | | 千港元 | 千港元 | | 永久業權土地及樓宇 | 50,021 | 50,510 | | 租賃土地及樓宇 | 93,012 | 94,887 | | 已抵押銀行存款 | 14,381 | 3,711 | | | | | | | 157,414 | 149,108 | – 24 – 或然負債 | --- | --- | --- | |------------------------------------------------|-------------------- ...

Financial Performance - The company's revenue for the year ended October 31, 2023, was HKD 5,327,931 thousand, an increase from HKD 4,541,018 thousand in the previous year, representing a growth of approximately 17.3%[41]. - Gross profit for the same period was HKD 1,590,594 thousand, compared to HKD 1,359,069 thousand in the prior year, indicating a year-over-year increase of about 17%[41]. - The core operating profit rose to HKD 359,951 thousand, up from HKD 208,894 thousand, reflecting a significant increase of approximately 72.5%[41]. - The net profit attributable to shareholders for the year was HKD 228,083 thousand, compared to HKD 162,642 thousand in the previous year, marking an increase of around 40.3%[41]. - Basic earnings per share increased to 18.41 cents from 13.13 cents, representing a growth of approximately 40.3%[41]. - Total comprehensive income for the year was HKD 268,288 thousand, compared to a loss of HKD 41,196 thousand in the previous year[36]. - The company reported a significant increase in profit before tax to HKD 301,132 thousand, compared to HKD 183,345 thousand in the previous year, representing a growth of approximately 64.3%[41]. - The total profit for the reportable segments in 2023 was HKD 376,342, up 61.5% from HKD 232,663 in 2022[56]. - The company reported a pre-tax profit of HKD 288,760 for 2023, compared to HKD 180,890 in 2022, marking a growth of 59.7%[63]. Revenue Breakdown - Revenue from external customers in the exhibition and project activation segment was HKD 4,413,088,000, accounting for 82.8% of total revenue[54]. - Revenue from exhibitions, projects, and brand activations amounted to HKD 4.413 billion, up from HKD 3.690 billion in the previous year, reflecting a growth of 19.6%[73]. - Revenue from visual brand activations was HKD 383.4 million, slightly up from HKD 363.9 million, indicating a growth of 5.4%[73]. - Revenue from museum and theme entertainment was HKD 396.9 million, a marginal increase from HKD 394.5 million, showing a growth of 0.6%[73]. - The revenue from the exhibition segment was HKD 3.83 billion, representing 7.2% of total group revenue, with a profit of HKD 32 million[145]. Investments and Expenditures - Capital expenditures related to properties, plants, and equipment amounted to HKD 13,450,000, an increase of 61.1% from HKD 8,347,000 in 2022[15]. - The group invested HKD 20 million in property, plant, and equipment, compared to HKD 14 million in 2022[26]. - The group invested HKD 34 million in intangible assets, down from HKD 74 million in 2022[26]. Corporate Governance and Financial Discipline - The company has maintained a high level of corporate governance, adhering to the Hong Kong Stock Exchange's corporate governance code[8]. - The group has implemented robust financial discipline to ensure long-term profitability, resulting in improved debt ratios due to significant reductions in long-term and short-term bank borrowings[133]. Market Outlook and Strategy - The company is optimistic about growth in the Greater China and Southeast Asia regions, with a focus on expanding operations in Saudi Arabia to capture emerging opportunities[17]. - The company anticipates a slow overall growth in the global economy for 2024, as per the International Monetary Fund's outlook[17]. - The company has a cautious yet optimistic outlook for its operations, particularly in international markets, as consumer behavior shifts post-pandemic[17]. - The group plans to leverage opportunities from Saudi Arabia's Vision 2030, with ongoing projects including NEOM and the largest light art festival, Noor Riyadh[103]. Operational Efficiency and Technology Integration - The integration of AI, data, and Web3 technologies is expected to enhance operational efficiency and broaden service offerings, aligning with evolving market expectations[3]. - The group is advancing the AI-supported PowerONE integrated IT system to enhance operational efficiency and become a fully data-driven enterprise[105]. - The group has developed a proprietary data management system to assist clients in making informed decisions and optimizing business operations[164]. Dividends and Shareholder Returns - The company declared a final dividend of HKD 0.07 per share for the year, subject to shareholder approval[65]. - The board proposed a final dividend of HKD 0.07 per share, totaling HKD 0.09 for the year, which represents 48.9% of the earnings per share of HKD 0.1841[128]. Foreign Exchange and Risk Management - The group has no hedging policy in place to mitigate foreign exchange risks[29]. Employee and Operational Metrics - Employee costs for the year amounted to approximately HKD 1.175 billion, up from HKD 987 million in 2022[30]. - The company has established 47 permanent offices across 36 cities, employing approximately 2,300 long-term staff as of October 31, 2023[102]. Project Highlights - The group is involved in significant projects including the Hong Kong History Museum and the Hong Kong Wetland Park, expected to be completed in 2024 and 2025 respectively[22]. - The group has been appointed as a designated supplier for GAC Aion's 200 stores plan in Southeast Asia for 2024[19]. - The group activated 14 brands at the Guangzhou International Auto Show and 25 brands at the Chengdu International Auto Show, highlighting significant engagement in major automotive exhibitions[138].

Financial Performance - Total revenue for the six months ended April 30, 2023, was HKD 2,493,180, an increase from HKD 2,344,692 in the same period of 2022, representing a growth of approximately 6.36%[4] - The total profit for reportable segments was HKD 167,756, compared to HKD 95,316 in the previous year, indicating a significant increase of approximately 76%[1] - The company reported a consolidated profit before tax of HKD 136,188, compared to HKD 81,539 in the previous year, an increase of approximately 67%[1] - Basic and diluted earnings per share for the six months ended April 30, 2023, were HKD 101,111,000, compared to HKD 68,905,000 for the same period in 2022, representing a growth of approximately 46.7%[21] - Core operating profit rose to HKD 174 million, a significant increase of 114.8% from HKD 81 million in the previous year[42] - Net profit for the period was HKD 102,385, compared to HKD 67,154 in 2022, marking a 52.4% increase[151] Revenue Breakdown - Revenue from the Greater China region was HKD 1,268,773, up from HKD 1,184,976, reflecting a growth of about 7.07%[4] - Revenue from Malaysia, Singapore, the Philippines, and Vietnam increased to HKD 440,039 from HKD 330,820, marking a growth of approximately 33%[4] - Revenue from exhibitions, projects, and brand activations increased by 12.3% to HKD 2.149 billion, up from HKD 1.914 billion in the previous year[46] - Revenue from visual brand activation decreased by 17.1% to HKD 160 million, down from HKD 193 million in the previous year[47] - Revenue from museums and theme entertainment decreased by 27.6% to HKD 152 million (2022: HKD 210 million)[48] - Revenue from event planning and activation increased by 14.3% to HKD 32 million (2022: HKD 28 million)[49] Expenses and Costs - Interest expenses on bank borrowings rose to HKD 17,466 from HKD 5,577, representing an increase of approximately 213%[15] - The total tax expense for the period was HKD 33,803, compared to HKD 14,385 in the previous year, indicating an increase of approximately 135%[15] - The company incurred a cost of goods sold of HKD 104,710, down from HKD 126,845, reflecting a decrease of approximately 17.4%[17] - Employee costs for the period amounted to HKD 454 million, compared to HKD 433 million for the six months ended April 30, 2022[79] Cash Flow and Assets - Cash and bank balances amounted to HKD 1.469 billion as of April 30, 2023, up from HKD 1.403 billion on October 31, 2022[75] - The net cash balance, after deducting external interest-bearing borrowings, was HKD 773 million, an increase from HKD 601 million on October 31, 2022[74] - Total borrowings decreased to HKD 696 million as of April 30, 2023, down from HKD 804 million on October 31, 2022[74] - The total net tangible assets attributable to shareholders increased by 9.0% to approximately HKD 1.76 billion as of April 30, 2023, compared to HKD 1.615 billion on October 31, 2022[74] Shareholder Information - The company declared an interim dividend of HKD 0.02 per share for the six months ended April 30, 2023, compared to no dividend in the same period last year[20] - The number of issued and fully paid shares increased from 1,238,258,104 on October 31, 2022, to 1,238,488,104 on April 30, 2023, due to the exercise of share options[29] - The major shareholders as of April 30, 2023, include Pine Asset Management Limited with 37.32% of the issued share capital and FMR LLC with 10.00%[115] Strategic Initiatives - The company is focused on leveraging differentiated data and AI strategies to enhance operational efficiency and drive business resilience[45] - The company is focusing on the electric vehicle sector and digital showrooms, securing significant projects with clients like Kia and high-end electric vehicle brand "Hao Bo"[66] - The company aims to expand its business into automation through the Fanuc project and is actively seeking opportunities in emerging industries such as agriculture and aviation[83] - The company is committed to building a data-driven enterprise model to enhance operational efficiency and profitability through the use of data and AI technologies[89] Market Position and Outlook - The company maintained a strong market position and benefited from the gradual recovery in Southeast Asia following the lifting of COVID-19 restrictions[44] - The group expects a strong recovery in project delivery in the second half of the fiscal year following the reopening of China in March[61] - The company is actively managing its operations and growth strategies to navigate potential economic pressures in China and the US[85]

Financial Performance - The company reported a profit of HKD 102,385,000 for the period, compared to HKD 67,154,000 in the previous year, representing a significant increase[1]. - Total comprehensive income for the period was HKD 221,466,000, up from HKD 36,041,000 year-over-year[2]. - The company reported segment profit of HKD 167,756,000, compared to HKD 95,316,000 in the previous year, indicating a substantial increase of approximately 76%[23]. - The profit before tax for the period was HKD 136.188 million, up from HKD 81.539 million year-on-year[26]. - Profit attributable to shareholders rose by 46.4% to HKD 101 million from HKD 69 million year-on-year[54]. - Net profit attributable to shareholders for the period was HKD 102,385, up from HKD 67,154, which is an increase of approximately 52.4%[142]. - Other comprehensive income for the period was HKD 119,081, compared to HKD 31,113 in the previous year, indicating a substantial increase of approximately 282.5%[143]. Revenue Growth - Total revenue from reportable segments reached HKD 2,619,888,000, an increase from HKD 2,443,468,000, reflecting a growth of approximately 7.2%[11]. - Total revenue for the six months ended April 30, 2023, was HKD 2.493 billion, an increase of 6.3% compared to HKD 2.345 billion in the same period last year[38]. - Revenue from exhibitions, projects, and brand activations increased by 12.3% to HKD 2.149 billion, compared to HKD 1.914 billion in the previous year[43]. - Revenue from conference planning activation increased by 14.3% to HKD 32 million, up from HKD 28 million in the previous year[78]. - Revenue for the six months ended April 30, 2023, was HKD 2,493,180, an increase from HKD 2,344,692 in the same period of 2022, representing a growth of approximately 6.4%[142]. Asset and Equity Growth - The company’s net assets amounted to HKD 2,326,660,000, compared to HKD 2,186,180,000 in the previous year, indicating a growth of about 6.4%[18]. - The company’s equity attributable to shareholders was HKD 2,251,444,000, up from HKD 2,105,432,000, reflecting an increase of approximately 6.9%[18]. - The total net asset value attributable to shareholders increased by 9.0% to approximately HKD 1.76 billion from HKD 1.62 billion[113]. Cost and Expenses - Interest expenses on bank borrowings increased to HKD 17,466,000 from HKD 5,577,000, showing a rise of approximately 213%[14]. - Employee costs for the period amounted to HKD 454,000,000, up from HKD 433,000,000 in the previous six months[117]. - The company reported a financing cost of HKD (20,580), which increased from HKD (8,681) in the previous year, reflecting a rise in financing expenses[142]. Dividends - The interim dividend declared was HKD 0.02 per share, compared to no interim dividend in the same period last year[33]. - The company proposed an interim dividend of HKD 0.02 per share, compared to no dividend in the same period last year[56]. Operational Efficiency and Strategy - The group aims to enhance operational efficiency through data-driven strategies and technology innovation[42]. - The group aims to enhance its data-driven business model, leveraging data, AI, and related technologies to improve profitability and operational efficiency[125]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[150]. Market and Project Development - The group is collaborating with K11 Group on the 11 SKIES project, which will feature over 800 stores and a total floor area of more than 353,000 square meters[70]. - The company is actively seeking opportunities in emerging industries, including projects in agriculture and aviation with Bombardier and Guangdong Haida Group[105]. - The group is involved in various museum and theme entertainment projects, including the Hong Kong Palace Museum and the Saudi National Museum[71]. - The group has delivered numerous physical projects, including the opening ceremony of the 25th Arabian Gulf Cup in Basra, Iraq[84]. - The group is set to deliver major projects across various regions, including the Asia Vaccine Conference and the FUTR Europe Summit[125]. Financial Position - The company’s total assets less current liabilities stood at HKD 2,850,113,000, compared to HKD 2,756,778,000, marking an increase of around 3.4%[3]. - The current ratio improved slightly to 1.50 times from 1.49 times year-on-year[76]. - The debt ratio decreased to 8.30% from 9.56% in the previous year[76]. - The total borrowings decreased to HKD 696 million from HKD 804 million, a reduction of 13.4%[95]. - The total liabilities secured by assets as of April 30, 2023, were HKD 111,865,000, a decrease from HKD 210,063,000 as of October 31, 2022[119]. Digital Transformation - The company continues to integrate digital interactive elements such as the metaverse and augmented reality into projects and brand activations[62]. - The VX Events platform has facilitated multiple events transitioning to virtual or hybrid formats, addressing the growing demand for digital solutions[92].

Financial Performance - Total revenue for the year reached HKD 45.41 billion, an increase of 12.1% compared to HKD 40.52 billion in the previous year[9] - Core operating profit rose to HKD 2.089 billion, reflecting a growth of 26.1% from HKD 1.657 billion in the prior year[17] - Net profit attributable to shareholders increased by 18.8% to HKD 1.626 billion, up from HKD 1.369 billion in the previous year[17] - EBITDA grew by 14.5% to HKD 2.986 billion, compared to HKD 2.608 billion in the previous year[17] - Basic earnings per share increased by 18.7% to HKD 0.1313, up from HKD 0.1106 in the previous year[17] - The company proposed a final dividend of HKD 0.060 per share, representing a 20.0% increase from HKD 0.050 per share in the previous year[17] - The return on equity for shareholders improved to 7.6%, up from 6.6% in the previous year[17] Revenue Breakdown - Total revenue from Greater China reached HKD 45.41 billion, accounting for 45.3% of the group's total revenue, down from 53.6% in the previous year[29] - Revenue from the Southeast Asia region increased to 20.9% of total revenue, up from 12.8% in the previous year[32] - The exhibition, project, and brand activation segment generated revenue of HKD 36.89 billion, representing 81.3% of total revenue, with a profit of HKD 1.819 billion[34] Operational Highlights - The company activated over 3,000 projects globally, with operations spanning 35 cities[18] - The group operates 46 permanent offices in 35 cities and employs approximately 2,200 long-term staff[22] - The group has received 45 international awards, showcasing its industry recognition and performance[18] Strategic Initiatives - The group has partnered with Founders Factory to launch a new venture incubation initiative focusing on Web3 and marketing technology startups[31] - The group has enhanced its capital structure to maintain sufficient resilience against financial challenges posed by the pandemic[31] - The group has seen a recovery in the MICE industry, particularly in Southeast Asia and the US, which has helped mitigate the negative impact from the Chinese market[24] - The group has implemented a data-driven approach using AI for decision-making and operational efficiency[27] Digital and Technological Developments - The company launched the HTML5 metaverse platform YAOLAND in collaboration with 263 Network Communications and China Unicom's subsidiary, aiming to create a complete digital consumption model[41] - Existing users of YAOLAND include major brands such as China Mobile, Honeywell, and the British National Gallery, indicating strong market interest[42] - The company partnered with State Farm to leverage gamification and social media to attract millennials and Gen Z audiences, integrating augmented reality technology[44] - The company is actively exploring the potential of NFTs and gamification to enhance user engagement and marketing effectiveness[44] - The company is focused on capturing the vast potential of the metaverse ecosystem in the Chinese market[41] Financial Reporting and Compliance - The company is committed to ensuring accurate financial reporting and compliance with accounting standards regarding lease liabilities and contract assets[48][50] - The company capitalizes contract costs related to existing or specifically identifiable anticipated contracts, which may include direct labor, materials, and other costs directly attributable to the contract[51] - Financial assets and liabilities are recognized at fair value upon becoming a party to the relevant contract, with transaction costs included in the initial measurement[53] - The company has adopted a stock option plan as a reward for directors and eligible employees, with details provided in the financial statements[89] Shareholder Information - Pine Asset Management Limited holds a significant stake of 462,167,186 shares, representing 37.32% of the total issued share capital[108] - FMR LLC controls 123,789,010 shares, accounting for 10.00% of the total issued share capital[108] - Brandes Investment Partners, L.P. has an investment of 99,023,157 shares, which is 8.00% of the total issued share capital[108] - Northern Trust Corporation holds 85,386,000 shares, representing 6.90% of the total issued share capital[108] Environmental and Regulatory Compliance - The company is committed to promoting environmentally sustainable practices and complying with applicable environmental laws[110] - The company has complied with all relevant laws and regulations affecting its business and operations during the year[109] - There were no significant violations of applicable laws and regulations during the year[109] Cash Flow and Investment Activities - Operating cash flow generated was HKD 191,585,000, a decrease of 31.9% from HKD 281,092,000 in the previous year[168] - Net cash generated from operating activities was HKD 148,220,000, down from HKD 239,500,000, reflecting a decline of 38.1%[168] - Cash used in investment activities totaled HKD 128,984,000, compared to HKD 96,211,000 in the previous year, indicating an increase of 33.9%[168] - The company incurred HKD 74,271,000 for the purchase of other intangible assets, which is a 60.3% increase from HKD 46,351,000 in the previous year[168] Audit and Internal Controls - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of October 31, 2022[124] - The group’s internal controls were evaluated to design appropriate audit procedures, although no opinion on their effectiveness was expressed[135] - The group communicated with the audit committee regarding significant audit findings and any material weaknesses identified in internal controls[155]

Financial Performance - Revenue for the six months ended April 30, 2022, increased to HKD 2,344,692 thousand, representing a 25% growth compared to HKD 1,875,768 thousand in the same period of 2021[2] - Gross profit for the same period was HKD 641,151 thousand, up from HKD 536,347 thousand, indicating a gross margin improvement[2] - Core operating profit decreased to HKD 80,731 thousand from HKD 92,087 thousand, reflecting a decline of approximately 12.5%[2] - Profit attributable to shareholders for the period was HKD 68,905 thousand, compared to HKD 57,523 thousand in 2021, marking a 19.5% increase[2] - Basic earnings per share rose to 5.56 cents from 4.65 cents, an increase of 19.6%[2] - The company reported a total comprehensive income of HKD 36,041 thousand for the period, down from HKD 136,515 thousand in the previous year[4] - The segment profit for the six months ended April 30, 2022, was HKD 95,316, compared to HKD 98,547 for the same period in 2021, indicating a slight decrease of about 2.3%[25] - The company reported a profit before tax of HKD 81,539 for the six months ended April 30, 2022, compared to HKD 51,278 in 2021, reflecting an increase of approximately 59%[25] Assets and Liabilities - Total assets decreased to HKD 3,333,906 thousand from HKD 3,595,516 thousand, a reduction of approximately 7.3%[5] - Non-current liabilities decreased to HKD 502,356 thousand from HKD 600,538 thousand, indicating a reduction of about 16.3%[8] - Total equity amounted to HKD 2,319,468,000, reflecting a decrease of 12,973,000 compared to the previous period[9] - Retained earnings stood at HKD 1,605,575,000, showing a decrease of 61,913,000 from the previous period[9] - Trade receivables amounted to approximately HKD 876,810,000 as of April 30, 2022, up from HKD 748,805,000 as of October 31, 2021[41] - Trade payables were approximately HKD 394,490,000 as of April 30, 2022, compared to HKD 335,937,000 as of October 31, 2021[42] Cash Flow - Cash and cash equivalents decreased to HKD 1,305,796 thousand from HKD 1,479,571 thousand, a decline of approximately 11.7%[5] - Net cash used in operating activities was HKD (14,305,000), compared to HKD (101,930,000) in the previous year[12] - Net cash used in investing activities was HKD (94,099,000), significantly higher than HKD (2,477,000) in the prior year[12] - Net cash used in financing activities was HKD (81,819,000), compared to HKD (29,479,000) in the previous year[12] - Cash and cash equivalents at the end of the period were HKD 1,255,955,000, an increase from HKD 1,184,559,000 year-over-year[13] - The company reported a cash and bank balance of HKD 1.31 billion as of April 30, 2022, down from HKD 1.48 billion on October 31, 2021[63] - The net cash balance after deducting external interest-bearing borrowings was HKD 581 million, a decrease from HKD 754 million year-on-year[65] Market and Growth Strategy - The company has plans for market expansion and new product development to drive future growth[2] - The company expects to hold more than double the number of exhibitions and projects in the second half of the fiscal year compared to the first half[69] - The company is exploring opportunities in the new energy vehicle sector, having secured contracts with brands such as Ford, GAC Toyota, and Mercedes-Benz[71] - The company continues to collaborate with clients to deliver projects for postponed exhibitions, indicating a strong pipeline of future work[55] - The group is leveraging opportunities arising from the growth of the digital economy and new energy vehicles in China, winning several new clients[59] Dividends and Share Options - The company declared a final dividend of HKD 0.05 per share for the year ended October 31, 2021, totaling HKD 61,913,000, compared to HKD 30,954,000 for the previous year[34] - No interim dividend was recommended for the six months ended April 30, 2022, compared to no interim dividend in the previous year[35] - The new share option plan approved on March 25, 2022, allows for the issuance of up to 123,825,810 shares, representing approximately 10% of the company's issued share capital[77] - The total expense recognized for stock options granted by the company for the six months ended April 30, 2022, is HKD 178,000, compared to HKD 459,000 for the same period in 2021[85] Operational Highlights - The number of exhibitions activated globally decreased by 18% compared to the same period last year, but Southeast Asia saw a nearly 70% growth, offsetting some negative impacts in the Chinese market[53] - The revenue from exhibitions, projects, and brand activations increased by 33.8% to HKD 1.914 billion from HKD 1.431 billion in the previous year[53] - The group recorded a decrease in visual brand activation revenue by 3.5% to HKD 193 million from HKD 200 million in the previous year[53] - The group reported a decrease in museum and theme entertainment revenue by 7.9% to HKD 210 million from HKD 228 million in the previous year[53] - The group activated multiple brands at major exhibitions, including the Thailand Huawei Cloud and Connectivity Summit and the Asia Defense Exhibition in Kuala Lumpur[54] Governance and Compliance - The company has adhered to the corporate governance code as per the listing rules, with a noted deviation regarding the separation of the roles of Chairman and CEO, which are held by the same individual[89] - The company confirms that all directors complied with the standards set forth in the code of conduct for securities trading during the period ending April 30, 2022[90] - The audit committee has reviewed the accounting principles and practices adopted by the group, discussing internal controls and financial reporting matters, including the review of the unaudited interim financial statements[91]