Financial Performance - For the six months ended September 30, 2020, the company reported a revenue of HKD 8,695,000, compared to HKD 8,457,000 for the same period in 2019, representing an increase of approximately 2.8%[7] - The company incurred a loss attributable to owners of approximately HKD 6,021,000, a significant improvement from a loss of HKD 21,885,000 in the same period of the previous year, indicating a reduction in losses by about 72.5%[6] - The gross profit for the same period was HKD 6,598 million, compared to HKD 6,160 million in the previous year, indicating an increase of about 7%[47] - The company recorded a loss before tax of HKD 5,037 million, significantly improved from a loss of HKD 20,272 million in the prior year, reflecting a reduction of approximately 75%[47] - The net loss for the period was HKD 6,021 million, compared to a net loss of HKD 21,885 million in the previous year, showing an improvement of around 73%[47] - Basic and diluted loss per share for the period was HKD (0.31), an improvement from HKD (1.12) in the prior year[47] - The company reported a total comprehensive loss of HKD (28,571,000) for the six months ended September 30, 2020, compared to a loss of HKD (21,885,000) for the same period in 2019, indicating a worsening financial performance[53] Revenue and Income Sources - For the six months ended September 30, 2020, total revenue was HKD 8,695 million, with property development and investment contributing HKD 4,226 million and financial lending contributing HKD 4,469 million[68] - The segment performance for property development and investment showed a profit of HKD 12,055 million, while financial lending reported a profit of HKD 3,891 million, leading to a total segment performance of HKD 15,946 million[68] - Revenue from property sales in China for the six months ended September 30, 2020, was HKD 2,422,000, compared to HKD 4,264,000 for the same period in 2019, indicating a decline[82] - Interest income from bank deposits increased to HKD 833,000 for the six months ended September 30, 2020, up from HKD 418,000 in the same period of 2019[83] - The company reported a net unrealized foreign exchange gain of HKD 7,944,000 for the six months ended September 30, 2020, compared to a loss of HKD 11,988,000 in the same period of 2019[83] Investment and Acquisitions - The company has no new products or services planned for launch, but it completed the acquisition of Zero Finance Group in October 2020, which will expand its lending business[15] - The acquisition of Earth Axis Investment Limited's subsidiary, Yaxin Credit Investment Limited, was announced on September 23, 2020, for a total consideration of HKD 404,109,000, with HKD 205,229,444 settled through the issuance of 710,000,000 shares[19] - The company has entered into an agreement to acquire 100% of the issued share capital of Yaxin Credit Investment Limited for an initial consideration of HKD 404,109,000, with part of the payment to be settled in shares[115] - The company plans to issue 710,000,000 new shares at an issue price of HKD 0.289 to settle approximately HKD 205,229,000 of the acquisition cost[115] Risk Management - The company continues to face foreign exchange risks primarily related to the Renminbi, with no financial instruments arranged for hedging purposes[14] - The company plans to enhance its risk management policies in response to the unpredictable impacts of political issues and trade conflicts on the Hong Kong economy[18] - The financial risk factors faced by the company include market risk (foreign exchange risk and cash flow and fair value interest rate risk), credit risk, and liquidity risk[67] Operational Performance - The company continues to focus on property investment and development, as well as providing mortgage loans in Hong Kong, indicating a strategic focus on core business areas[58] - The company is actively seeking investment opportunities in the competitive Guangdong property market, although no acquisitions were made during the review period[17] - The company is cautiously optimistic about generating stable interest income from its lending operations in Hong Kong[12] - The company will continue to monitor the impact of COVID-19 on its financial condition and operational performance, as the situation remains uncertain[18] Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange regulations during the reporting period[39] - The audit committee has reviewed the accounting principles and practices adopted by the group, ensuring compliance with relevant financial reporting standards[41] - The company has established a standard code for securities trading by directors, ensuring adherence to regulatory requirements[40] Employee and Administrative Expenses - The company employed 37 staff members as of September 30, 2020, with compensation policies based on performance, qualifications, and market statistics[16] - Employee benefit expenses decreased to HKD 2,431,000 for the six months ended September 30, 2020, down 41.5% from HKD 4,127,000 in the same period of 2019[85] - The company paid HKD 2,713,500 to key management personnel during the six months ended September 30, 2020, a decrease from HKD 4,317,665 for the same period last year[110] Property and Investment Valuation - The company’s investment properties were valued at HKD 183,300,000 as of September 30, 2020, an increase from HKD 180,000,000 as of March 31, 2020[112] - The fair value gain from investment properties was HKD 3,300,000 for the six months ended September 30, 2020, compared to a loss of HKD 5,000,000 in the same period of 2019[83] - The revaluation gain for the six months ended September 30, 2020, was HKD 8,047,000, compared to a loss of HKD 9,076,000 for the same period in 2019[97] Liquidity and Cash Flow - The company has sufficient liquidity and does not have significant capital expenditure commitments, aside from the acquisition of Zero Finance Group[14] - The net cash used in operating activities for the six months ended September 30, 2020, was HKD (987,000), a decrease from HKD (36,502,000) for the same period in 2019, indicating improved cash flow management[57] - The cash and cash equivalents at the end of the period were HKD 192,189,000, compared to HKD 219,132,000 at the end of the same period last year, showing a decrease of approximately 12.3%[57]
TERMBRAY IND(00093) - 2020 - 中期财报