Financial Performance - For the six months ended June 30, 2021, the group's revenue was approximately HKD 77.8 million, an increase of about 39.1% compared to HKD 56.0 million for the same period in 2020[15]. - The profit attributable to owners for the six months ended June 30, 2021, was approximately HKD 2.3 million, a decrease of about 8.4% from HKD 2.5 million for the same period in 2020, primarily due to intense market competition and rising production costs[15]. - The basic earnings per share for the six months ended June 30, 2021, was approximately HKD 0.23, compared to HKD 0.25 for the same period in 2020[15]. - The gross profit margin decreased from approximately 28.0% for the six months ended June 30, 2020, to approximately 18.3% for the same period in 2021, mainly due to reduced product prices and increased production costs[25]. - The net profit for the announcement period was approximately HKD 2.3 million[35]. - The company reported a total comprehensive income of HKD 3,298,000 for the six months ended June 30, 2021[112]. - The operating profit before tax for the six months ended June 30, 2021, was HKD 2,757,000, down 23% from HKD 3,580,000 in the previous year[120]. - The net cash used in operating activities for the six months ended June 30, 2021, was HKD 16,237,000, compared to a cash generated of HKD 4,086,000 in the same period of 2020[120]. Revenue Breakdown - Revenue from the book products segment accounted for approximately 89.2% of total revenue, with segment revenue increasing by about 43.8% to approximately HKD 69.4 million from HKD 48.3 million in the same period last year[20]. - Revenue for the six months ended June 30, 2021, was HKD 77,821,000, representing a 39% increase from HKD 55,953,000 in the same period of 2020[129]. - The revenue from book products was HKD 69,419,000, up 44% from HKD 48,290,000 year-over-year[129]. - Revenue from external customers in Hong Kong increased to HKD 30,170,000, a 93% increase from HKD 15,604,000 in the previous year[131]. - Revenue from the United States decreased to HKD 26,870,000, down 17% from HKD 22,932,000 year-over-year[131]. Expenses and Costs - Distribution costs increased by approximately 39.1% to about HKD 4.5 million from HKD 3.2 million, primarily due to increased transportation and freight costs[29]. - Administrative expenses increased by approximately 3.5% to about HKD 7.1 million from HKD 6.9 million, with no significant fluctuations[32]. - The total employee cost for the six months ended June 30, 2021, was approximately HKD 22.2 million, an increase from approximately HKD 13.9 million for the same period in 2020[61]. - The depreciation of property, plant, and equipment increased to HKD 3,668,000 from HKD 2,878,000 in the previous year[120]. Assets and Liabilities - As of June 30, 2021, the company had cash and bank balances of approximately HKD 21.5 million, a decrease of about 57.7% from approximately HKD 50.8 million as of December 31, 2020, primarily due to increased purchases of raw materials, properties, and equipment, as well as dividend payments[40]. - The company's current assets as of June 30, 2021, were approximately HKD 126.2 million, which included inventory of approximately HKD 44.4 million and trade and other receivables of approximately HKD 59.9 million[40]. - The company's current liabilities as of June 30, 2021, were approximately HKD 38.5 million, resulting in a net current asset value decrease of about HKD 6.7 million or approximately 7.1%[41]. - The company's total assets as of June 30, 2021, were HKD 126,246,000, compared to HKD 117,280,000 as of December 31, 2020[102]. - The total trade and other receivables as of June 30, 2021, amounted to HKD 59,925,000, an increase of 37.5% from HKD 43,598,000 as of December 31, 2020[143]. Taxation and Dividends - The company's income tax expense decreased by 56.1% from approximately HKD 1.1 million for the six months ended June 30, 2020, to approximately HKD 0.5 million for the six months ended June 30, 2021, mainly due to a reduction in taxable profits during the announcement period[34]. - The income tax expense for the six months ended June 30, 2021, was HKD 480,000, a decrease of 56.1% from HKD 1,094,000 in the same period of 2020[135]. - The company did not declare any interim dividends for the six months ended June 30, 2021[50]. - The company declared a final dividend of HKD 0.005 per share for the year ended December 31, 2020, totaling HKD 5,000,000, compared to HKD 4,000,000 for the previous year, marking a 25% increase[137]. Corporate Governance - The company confirmed compliance with the corporate governance code, except for certain deviations regarding the appointment of non-executive directors and the chairperson's role[77][80]. - All independent non-executive directors attended the annual general meeting held on May 6, 2021, ensuring they understood shareholders' opinions[81]. - The company has adopted the trading code of conduct as per the listing rules, and all directors confirmed compliance for the six months ending June 30, 2021[84]. Shareholder Information - The major shareholders include 精智有限公司 holding 675,000,000 shares, representing 67.5% of the company's issued share capital, and Fortune Corner Holdings Limited holding 75,000,000 shares, representing 7.5%[67][68]. - The total issued and paid-up share capital as of June 30, 2021, is 1,000,000,000 shares at HKD 0.01 each[152].
竣球控股(01481) - 2021 - 中期财报