Financial Performance - Total revenue for the six months ended June 30, 2021, was HK$293,097,000, an increase of 32.4% compared to HK$221,389,000 for the same period in 2020[15]. - Revenue from goods and services rose to HK$289,347,000, up 34.2% from HK$215,492,000 in the previous year[15]. - Gross profit for the period was HK$53,523,000, a decrease of 4.3% from HK$56,120,000 in the prior year[15]. - Profit for the period was HK$8,102,000, compared to a loss of HK$50,645,000 in the same period last year[15]. - Basic earnings per share increased to HK$3.2 from a loss of HK$19.9 per share in the previous year[18]. - Total comprehensive income for the period was HK$15,514, a recovery from a total comprehensive loss of HK$64,558 in the prior year[18]. - The Group's profit before taxation for the six months ended June 30, 2021, was HK$10,892,000, compared to a loss of HK$50,456,000 in the same period last year[52]. - The Group recorded a profit of approximately HK$8.1 million for the Period, a significant improvement from a loss of approximately HK$50.6 million for the six months ended 30 June 2020, mainly due to a fair value gain from investment properties of approximately HK$35.9 million[141][145]. Expenses and Liabilities - Selling and distribution expenses increased to HK$13,929,000, up from HK$12,951,000 in the previous year[15]. - Administrative expenses rose to HK$62,932,000, compared to HK$58,921,000 in the prior year[15]. - Interest income from lending business decreased to HK$1,015,000 from HK$3,455,000 in the previous year[15]. - The taxation charge for the period was HK$2,790,000, compared to HK$189,000 in the previous year[15]. - Total liabilities increased to HK$304,489 from HK$296,793, with bank borrowings rising to HK$84,368 from HK$79,787[26]. - The Group's total segment liabilities decreased to HK$259,325,000 from HK$279,293,000, a reduction of approximately 7.1%[56]. Assets and Equity - Non-current assets decreased to HK$518,244 from HK$493,599 as of December 31, 2020, primarily due to a reduction in property, plant, and equipment[22]. - Current assets slightly decreased to HK$631,687 from HK$633,122, with inventories increasing to HK$38,610 from HK$35,537[22]. - Net assets increased to HK$845,442 from HK$829,928, indicating a strengthening of the Company's financial position[26]. - The Group's total equity at June 30, 2021, was HK$845,442,000, reflecting a recovery from the previous period's losses[28]. - Total segment assets increased to HK$932,686,000 as of June 30, 2021, from HK$870,163,000 as of December 31, 2020, representing a growth of approximately 7.1%[56]. Segment Performance - The Manufacturing and Sales Business generated HK$271,331,000 in revenue, up 36.6% from HK$198,646,000 in the previous year[52]. - Revenue from the Music and Entertainment Business increased to HK$2,345,000, a rise of 50.9% from HK$1,554,000 in the prior year[52]. - The Property Business reported a segment profit of HK$30,807,000, compared to a loss of HK$1,648,000 in the same period last year[52]. - Revenue from external customers in Hong Kong was HK$114,900,000, an increase of 15% from HK$99,979,000 in 2020[45]. - Revenue from the People's Republic of China (PRC) rose to HK$117,362,000, up 46.2% from HK$80,243,000 in the previous year[45]. Cash Flow and Investments - Operating cash flows before movements in working capital were negative at HK$2,506,000, an improvement from negative HK$28,085,000 in the prior year[31]. - The company experienced a net cash outflow from investing activities of HK$7,383,000, compared to HK$27,126,000 in the previous year, reflecting reduced investment expenditures[31]. - New bank borrowings raised amounted to HK$91,020,000, while repayments of bank borrowings were HK$86,439,000, resulting in a net increase in financing cash flows[33]. - The Group's investments as of June 30, 2021, included securities of 11 listed companies, with each investment accounting for less than 5% of total assets[196]. Market and Operational Challenges - The Group anticipates that the ongoing impact of COVID-19 will continue to negatively affect its business activities throughout 2021[165]. - The persistent political and economic tensions between the PRC, the U.S., and European countries have increased business risks for manufacturing entities in the PRC[158][160]. - Stricter environmental regulations imposed by the PRC government have raised operating costs for factories[158][160]. - The Manufacturing and Sales Business of printing products is expected to face a challenging environment due to ongoing COVID-19 outbreaks, which have slowed global economic recovery and increased transportation costs significantly[158][160]. Future Plans and Strategies - The Group plans to cautiously expand its loan portfolio using the online money lending platform to attract new customers amid a challenging economic environment[149]. - The Group plans to acquire new printing machines and consider establishing a new handcraft factory outside Shenzhen to enhance production efficiency and meet increasing sales orders[162]. - The Group is actively seeking opportunities to co-develop or invest in the industrial park, indicating a strategy for market expansion[179]. - The Group will continue to recruit talents to expand existing and new trading businesses in Hong Kong[199].
中星集团控股(00055) - 2021 - 中期财报