Financial Performance - Revenue for the six months ended September 30, 2019, was HKD 32,599,000, a decrease of 4.7% compared to HKD 34,206,000 in the same period of 2018[7] - Gross profit for the same period was HKD 20,219,000, resulting in a gross margin of 61.9%[7] - The company reported a loss of HKD 22,328,000 for the period, compared to a profit of HKD 1,816,000 in the previous year[7] - Basic and diluted loss per share was HKD 1.132, compared to earnings of HKD 0.135 per share in the prior year[7] - For the six months ended September 30, 2019, the company reported a loss before tax of HKD 20,606,000 compared to a profit of HKD 3,290,000 in the same period of 2018[15] - The company reported a loss attributable to owners of HKD 22,254,000 for the six months ended September 30, 2019, compared to a profit of HKD 1,891,000 in the same period of 2018[41] - The net loss after tax for the period was HKD 22,300,000, a significant decline from a profit of HKD 1,800,000 for the same period in 2018, indicating a negative impact due to social unrest in Hong Kong[64] Assets and Liabilities - Total assets as of September 30, 2019, were HKD 591,729,000, down from HKD 619,036,000 as of March 31, 2019[8] - Current liabilities amounted to HKD 44,208,000, a decrease from HKD 59,016,000 in the previous period[9] - Net asset value decreased to HKD 559,750,000 from HKD 582,078,000[9] - The company’s equity attributable to owners was HKD 562,157,000, down from HKD 584,411,000[9] - The group's total borrowings as of September 30, 2019, amounted to approximately HKD 26,203,000, down from HKD 30,920,000 as of March 31, 2019, reflecting a decrease of about 15.5%[52] - Approximately HKD 9,600,000 of the total borrowings is due within one year, while HKD 16,600,000 is due after one year[68] Cash Flow and Financing - Operating cash flow for the period was a net outflow of HKD 4,978,000, a decrease from a net inflow of HKD 19,550,000 in the same period last year[15] - Cash and cash equivalents at the end of the period stood at HKD 19,946,000, down from HKD 37,830,000 at the end of the previous year[16] - The company utilized HKD 598,000 in investing activities, a significant decrease from HKD 168,631,000 in the prior year[16] - Financing activities resulted in a cash outflow of HKD 4,717,000 for loan repayments, compared to HKD 4,672,000 in the previous year[16] - The company has a net asset value of approximately HKD 559,750,000 and believes it can secure additional financing if necessary[24] - A revolving loan agreement was established with the controlling shareholder for HKD 33,000,000, which remains undrawn as of September 30, 2019[24] Operational Highlights - The company plans to focus on improving operational efficiency and exploring new market opportunities[7] - There were no significant new product launches or acquisitions reported during this period[7] - Hotel room rental income for the six months ended September 30, 2019, was HKD 22,527,000, a decrease of 8.9% from HKD 24,742,000 in the same period of 2018[33] - Total revenue from hotel operations, including room sales, food and beverage, and miscellaneous sales, was HKD 32,599,000 for the six months ended September 30, 2019, compared to HKD 34,206,000 in 2018, reflecting a decline of 4.7%[30] - The cost of services provided increased to HKD 12,380,000 in 2019 from HKD 10,800,000 in 2018, representing a rise of 14.7%[37] - The group initiated hotel room price promotions to maintain sales and market share, which negatively impacted profit margins due to rising operational costs[64] - The management is closely monitoring the situation to mitigate future business threats and is hopeful for a quick recovery in the tourism and hotel industry in Hong Kong[65] Corporate Governance - The company has complied with the corporate governance code, with deviations noted regarding the roles of the chairman and managing director[82] - The audit committee, composed entirely of independent non-executive directors, reviewed the unaudited interim consolidated financial statements for the six months ending September 30, 2019[86] - The company maintains the required public float as per listing rules as of the report date[91] - There have been no significant events occurring after September 30, 2019, up to the report date[90] Employee and Dividend Information - The total number of employees as of September 30, 2019, was approximately 107, a decrease from 111 as of March 31, 2019[70] - The company did not recommend an interim dividend for the six months ended September 30, 2019, consistent with the previous year[42] - The group did not declare an interim dividend for the six months ended September 30, 2019, compared to no dividend declared for the same period in 2018[62]
茂盛控股(00022) - 2020 - 中期财报