Revenue and Profitability - The Group's overall revenue increased by HK$7.9 million, or 6.7%, to HK$125.3 million for the six months ended June 30, 2021, compared to HK$117.4 million in 2020[8]. - Consolidated net profit attributable to shareholders rose by 7.8% to HK$21.4 million, up from HK$19.9 million in 2020[8]. - Basic earnings per share increased to 8.64 HK cents, compared to 8.03 HK cents in 2020[8]. - Total comprehensive income for the period was HK$22,039,000, compared to HK$19,906,000 in 2020, showing a growth of 10.7%[56]. - Profit before tax increased to HK$21,793,000, up 7.5% from HK$19,352,000 in the previous year[50]. - Profit for the period attributable to owners of the parent was HK$21,390,000, compared to HK$19,850,000 in 2020, reflecting an increase of 7.8%[50]. Dividends - An interim dividend of 6 HK cents per ordinary share was declared, up from 5 HK cents in 2020[8]. - The Board declared an interim dividend of HK$0.06 per ordinary share for the six months ended June 30, 2021, up from HK$0.05 in 2020[40]. - The final dividend for the interim period is HK$0.12 per ordinary share, an increase from HK$0.08 in 2020, reflecting a growth of 50%[190]. - The company has approved and paid a total dividend of HK$29,744,000 during the interim period, compared to HK$19,789,000 in 2020, representing a growth of 50%[190]. Expenses and Costs - Gross profit improved by 1.1% to HK$66.5 million, with a gross profit margin dropping to 53.1% from 56.1% in the previous year[8]. - Overall expenses were maintained at the same level compared to the same period last year[8]. - The cost of sales and services rose by HK$7.1 million, or 13.8%, to HK$58.7 million (2020: HK$51.6 million), primarily due to changes in capitalizing development costs[28]. - Employee benefit expenses rose to HK$75,428,000, an increase of 10.0% compared to HK$68,280,000 in 2020[178]. - The cost of services provided increased to HK$40,120,000, representing a 20.0% rise from HK$33,140,000 in 2020[178]. Business Segments Performance - The Group's Application Software business recorded mild revenue growth, maintaining profit contributions despite economic pressures from the Pandemic[11]. - The Human Resources Management Software (HRMS) business secured new orders from various sectors, including leading biopharmaceutical companies and a Fintech company, while developing a Software as a Service (SaaS) revenue model[11]. - The Enterprise Information Management Software (EIMS) and Enterprise Procurement Management Software (EPMS) businesses achieved healthy revenue growth and double-digit profit increments, although the Enterprise Retail Management Software (ERMS) faced challenges due to a sluggish retail market[11]. - The Solutions and Integration Services business saw revenue increase by HK$1.4 million, or 3.2%, to HK$45.2 million, but profit contribution dropped by HK$3.7 million, or 34.6%, to HK$6.9 million due to changes in cost capitalization practices[13]. - The Group's GETS business benefited from the recovery of the global trading environment, recording revenue growth and improved performance through effective cost control[19]. Financial Position - Current assets decreased by 2.5% to HK$383.2 million, attributed to increased trade receivables and a decrease in cash and bank balances after the final dividend distribution[31]. - Current and non-current liabilities dropped by HK$6.9 million, or 4.6%, to HK$144.8 million, due to decreases in trade payables and bonus provisions[33]. - Total equity attributable to owners of the parent slightly dropped by HK$7.6 million, or 1.5%, to HK$505.6 million, mainly due to the purchase of shares under the restricted share award scheme[33]. - Non-current assets decreased by HK$4.9 million, or 1.8%, to HK$269.3 million, due to amortization and depreciation[31]. - The Group maintains strict controls over trade receivables, considering them all recoverable in the foreseeable future[31]. Future Outlook and Strategy - The Group's future prospects depend critically on the containment of the pandemic, with a focus on product R&D and business expansion in the Greater Bay Area post-pandemic[26]. - The Group will explore business acquisition opportunities as a key management direction in the foreseeable future[26]. - The Group aims to expand its market presence and enhance its product offerings in the upcoming quarters[100]. - Future outlook remains positive with a focus on innovation and strategic investments to drive growth[100]. Cash Flow and Financing - Net cash flows from operating activities decreased to HK$19,838,000 in 2021 from HK$27,930,000 in 2020, representing a decline of 29%[76]. - Net cash flows from investing activities were HK$30,424,000 in 2021, down from HK$96,933,000 in 2020, indicating a decrease of 68.6%[76]. - The company reported a net cash outflow from financing activities of HK$33,862,000, compared to HK$22,770,000 in 2020, indicating an increase in cash used[76]. - The Group had no bank borrowings as of June 30, 2021, maintaining a current ratio of 3.0 and a gearing ratio of 22.2%[36]. Accounting and Reporting - The Group's unaudited interim condensed consolidated financial information for the six months ended June 30, 2021, has been prepared in accordance with HKAS 34 "Interim Financial Reporting"[76]. - The accounting policies adopted are consistent with those applied in the preparation of the Group's annual consolidated financial statements for the year ended December 31, 2020[81]. - The financial information does not include all disclosures required in annual financial statements and should be read in conjunction with the Group's annual consolidated financial statements[76].
科联系统(00046) - 2021 - 中期财报