Financial Performance - The company's unaudited profit attributable to shareholders for the six months ended June 30, 2020, was HKD 48 million, an increase of HKD 27 million or 129% compared to HKD 21 million in the same period last year[4]. - Earnings per share were HKD 0.016, up from HKD 0.007 in 2019[4]. - The group's total post-tax profit contribution from Citistore and UNY Hong Kong was HKD 46 million, an increase of HKD 27 million or 129% compared to the previous year[26]. - The company reported a pre-tax profit of HKD 55 million, compared to HKD 24 million in the previous period, marking an increase of approximately 129.2%[53]. - The company recorded a total net profit of HKD 48 million for the six months ended June 30, 2020, a 129% increase from HKD 21 million in the same period of 2019[141]. - The group's pre-tax operating profit for the six months ended June 30, 2020, was HKD 74 million, compared to HKD 46 million in 2019, representing a year-on-year increase of 60.87%[145]. Sales and Revenue - Total sales revenue for "Citistore" decreased by 17% to HKD 749 million, down from HKD 907 million in the previous year[13]. - The total sales amount from licensed and consignment counters decreased by 20% to HKD 560 million, down from HKD 698 million[13]. - The group recognized a total revenue of HKD 880 million for the six months ended June 30, 2020, down from HKD 926 million in the same period of 2019, representing a decrease of approximately 5%[68]. - Sales revenue from merchandise was HKD 669 million for the first half of 2020, compared to HKD 673 million in the same period of 2019, indicating a slight decline[68]. - The group reported a total consignment sales revenue of HKD 717 million for the first half of 2020, down from HKD 879 million in the same period of 2019, reflecting a decrease of approximately 18%[68]. - For the six months ended June 30, 2020, the total revenue from Citistore decreased by HKD 56 million or 13% compared to the same period in 2019, primarily due to the impact of the COVID-19 pandemic on retail activities in Hong Kong[131]. Operational Highlights - The contribution to profit after tax from "Citistore" increased by HKD 1 million or 3% to HKD 34 million, mainly due to a reduction in rental expenses of HKD 27 million[19]. - UNY Hong Kong expanded its operations by opening a new Japanese supermarket in Yuen Long, offering fresh Japanese agricultural products and daily necessities[20]. - The supermarket business is expected to remain stable, while the department store sector faces ongoing challenges due to the pandemic[30]. - UNY Hong Kong launched an online delivery service for fresh sushi and sashimi in July 2020, responding to changing consumer preferences[30]. - The number of "Citi-Fun" members increased to over 330,000 due to enhanced promotional activities[10]. Dividends and Shareholder Information - The company declared an interim dividend of HKD 0.01 per share, down from HKD 0.02 per share in 2019[4]. - The company paid dividends of HKD 30 million, down from HKD 61 million, indicating a reduction of approximately 50.8%[53]. - As of June 30, 2020, major shareholder Li Ka-shing holds 2,110,868,943 shares, representing 69.27% of the total equity[170]. - The company has no share option scheme in place for its subsidiaries[177]. - The company has a significant ownership structure with Li Ka-shing and his family controlling 72.50% of Hysan Development Company Limited[170]. Financial Position - As of June 30, 2020, the group had no bank borrowings and a net cash balance of HKD 349 million[29]. - The company maintained goodwill at HKD 1,072 million, unchanged from the previous period[43]. - The total equity attributable to shareholders increased from HKD 1,288 million to HKD 1,298 million, a rise of about 0.8%[43]. - The group has sufficient financial resources to meet operational and future expansion funding needs, supported by a cash balance of HKD 349 million[145]. - The group had no bank borrowings as of June 30, 2020, maintaining a strong liquidity position[144]. Cost and Expenses - Employee costs increased to HKD 125 million from HKD 121 million, marking a rise of approximately 3.31%[75]. - The total cost of sales for the period was HKD 466 million, slightly down from HKD 470 million in 2019, showing a decrease of approximately 0.85%[75]. - The depreciation expense for right-of-use assets was HKD 111 million, an increase from HKD 103 million in 2019, representing a rise of about 7.77%[85]. - Direct costs decreased by HKD 40 million or 12%, from HKD 328 million to HKD 288 million, reflecting lower sales and related expenses[128]. Asset and Liability Management - Non-current assets decreased from HKD 2,010 million to HKD 1,953 million, a reduction of approximately 2.8%[43]. - Current assets decreased from HKD 536 million to HKD 525 million, a decline of about 2.1%[43]. - Total liabilities decreased from HKD 1,262 million to HKD 1,180 million, representing a decrease of approximately 6.5%[43]. - The group recognized HKD 12 million in profit adjustments related to rental payment changes due to COVID-19[64]. - The group has no contingent liabilities as of June 30, 2020, maintaining a stable financial position[117]. Compliance and Governance - The review of the interim financial statements was conducted in accordance with the Hong Kong Institute of Certified Public Accountants' standards[181]. - No significant issues were found that would lead to the belief that the interim financial statements were not prepared in accordance with the relevant accounting standards[182].
恒基发展(00097) - 2020 - 中期财报