Financial Performance - The company's profit attributable to shareholders for the six months ended June 30, 2021, was HKD 30 million, a decrease of HKD 18 million or 38% compared to HKD 48 million in the same period last year[5]. - Earnings per share decreased to HKD 0.01 from HKD 0.016 in 2020[5]. - The group recorded a net loss of HKD 5 million for UNY for the six months ended June 30, 2021, compared to a net profit of HKD 12 million in the same period last year[23]. - The group's total shareholder profit decreased by HKD 18 million or 38% to HKD 30 million compared to HKD 48 million in the same period last year[23]. - The company recognized a loss attributable to shareholders of HKD 5 million for the six months ended June 30, 2021, compared to a profit of HKD 12 million in the same period of 2020, a decrease of HKD 17 million[43]. - The operating profit before tax, including bank interest income but excluding financing costs, was HKD 49 million for the six months ended June 30, 2021, down from HKD 74 million in 2020, a decrease of HKD 25 million or 33.8%[57]. - Profit before tax for the six months ended June 30, 2021, was HKD 33 million, down from HKD 53 million in the same period of 2020, indicating a decline of about 37.7%[127]. - The company reported a total comprehensive income of HKD 40 million for the period, compared to HKD 48 million in the previous period, a decrease of approximately 16.67%[86]. Revenue and Sales - Total sales revenue for self-operated products increased by 6% to HKD 200 million, while the gross profit margin slightly decreased to 32% due to intense price competition[13]. - The total sales revenue from franchise and consignment counters increased by 4% to HKD 583 million, with total commission income remaining stable at HKD 171 million[15]. - Total sales revenue for UNY, including self-operated goods and consignment counters, increased by 2% to HKD 651 million for the six months ended June 30, 2021, compared to HKD 637 million in the same period last year[19]. - The group reported consignment sales income of HKD 754 million for the six months ended June 30, 2021, compared to HKD 717 million for the same period in 2020, marking a growth of 5.2%[113]. - Sales revenue from merchandise was HKD 680 million, up from HKD 669 million year-on-year, reflecting a growth of 1.6%[113]. - For the six months ended June 30, 2021, the group's revenue was HKD 895 million, an increase of 1.7% compared to HKD 880 million for the same period in 2020[113]. Dividends and Shareholder Returns - The company announced an interim dividend of HKD 0.01 per share, consistent with the previous year[5]. - The company declared an interim dividend of HKD 30 million for the six months ended June 30, 2021, consistent with the HKD 30 million declared in the same period of 2020[125]. - The company paid dividends of HKD 30 million during the period, reflecting a commitment to shareholder returns[94]. Costs and Expenses - The direct costs for the same period were HKD 494 million, up from HKD 476 million, representing an increase of HKD 18 million (or 3.8%) year-over-year[43]. - The total amount for rent and related expenses, depreciation of right-of-use assets, and financing costs for lease liabilities was HKD 96 million, a decrease of HKD 9 million (or 9%) compared to HKD 105 million in the previous year[41]. - Rental and related expenses increased to HKD 30 million from HKD 17 million in the previous year, reflecting an increase of HKD 13 million (or 76.5%)[41]. - The company reported a cost of sales of HKD 477 million for the six months ended June 30, 2021, compared to HKD 466 million in the same period of 2020, an increase of approximately 2.4%[120]. - Total employee costs for the six months ended June 30, 2021, were HKD 131 million, an increase from HKD 125 million in the same period of 2020, representing a growth of 4.8%[120]. Assets and Liabilities - The cash and bank balance as of June 30, 2021, was HKD 366 million, a decrease of HKD 49 million or 12% from HKD 415 million as of December 31, 2020[56]. - Non-current assets decreased from HKD 1,846 million to HKD 1,686 million, a decline of approximately 8.66%[83]. - Current assets decreased from HKD 584 million to HKD 541 million, a decline of approximately 7.37%[83]. - Total liabilities decreased from HKD 1,083 million to HKD 877 million, a decline of approximately 19.01%[83]. - The net current liabilities of the group as of June 30, 2021, were HKD 39 million, down from HKD 62 million as of December 31, 2020[103]. - The total lease liabilities amounted to HKD 502 million as of June 30, 2021, down from HKD 674 million as of December 31, 2020, representing a decrease of approximately 25.5%[184]. Store Operations and Expansion - The company operated seven stores under the "Citistore" brand and three stores under the "APITA" brand as of June 30, 2021[9]. - The company closed one "Citistore" location and opened two "C生活" stores during the reporting period[10]. - The group plans to open five new "C生活" practical household goods stores in the second half of 2021, with two already opened in July[25]. - A new supermarket under UNY is scheduled to open in November 2021 at the Tseung Kwan O Metro City Phase II[25]. Goodwill and Impairment - The goodwill from the acquisition of Citistore (千色商譽) was assessed with an average projected sales revenue growth of 9.3% for the periods ending June 30, 2022, to June 30, 2026[141]. - The board assessed that there was no impairment loss for the Citistore goodwill as of June 30, 2021, with the recoverable amount exceeding the carrying value[146]. - The goodwill from the UNY acquisition (UNY商譽) was calculated at HKD 262 million, based on the fair value of identifiable assets and liabilities at the acquisition date[147]. - The board also determined that there was no impairment loss for the UNY goodwill as of June 30, 2021[151]. - The estimated potential impairment loss for UNY goodwill could be HKD 50 million if the budgeted gross profit margin decreases by 2% over the next five years[155]. IT and Operational Efficiency - The group is enhancing its IT systems and integrating operations between Citistore and UNY to improve efficiency and reduce logistics costs[25]. - A new comprehensive customer relationship management (CRM) system is being developed to strengthen customer communication and promote sales growth across different brands[25].
恒基发展(00097) - 2021 - 中期财报