Financial Performance - Revenue for the six months ended September 30, 2019, was HKD 482,213,000, representing a 17% increase compared to HKD 411,410,000 in the same period of 2018[5]. - Profit attributable to owners of the company decreased by 21% to HKD 21,303,000 from HKD 27,100,000 year-on-year[5]. - Basic and diluted earnings per share were HKD 2.85, down 18% from HKD 3.46 in the previous year[5]. - The company reported a total comprehensive income of HKD 14,422,000, down from HKD 18,090,000 in the previous year[9]. - The net profit for the same period was HKD 20,737,000, adjusted to HKD 24,559,000 under the previous accounting standard[62]. - The company incurred financial costs of HKD 7,188,000 for the six months ended September 30, 2019, compared to HKD 236,000 for the same period in 2018[102]. - The group recorded a net profit of HKD 21 million, a slight decrease from HKD 27 million in the same period last year[145]. Assets and Liabilities - Total assets increased by 24% to HKD 1,013,000,000 as of September 30, 2019, compared to HKD 816,000,000 as of March 31, 2019[5]. - The total liabilities were reported at HKD 502,721,000, with segment liabilities for watch sales at HKD 435,242,000 and property leasing at HKD 8,657,000[88]. - The carrying amount of right-of-use assets as of April 1, 2019, was HKD 236,010,000, which includes HKD 234,194,000 related to operating leases and HKD 16,203,000 from reclassification of lease prepayments, offset by HKD 14,387,000 for accrued lease liabilities related to rent-free periods[53]. - The total non-current assets value increased to HKD 679,951,000 after the adoption of HKFRS 16, compared to HKD 459,677,000 prior to the adoption[57]. Cash Flow - The net cash generated from operating activities for the six months ended September 30, 2019, was HKD 26,509,000, a decrease of 56% compared to HKD 60,301,000 in 2018[25]. - The cash and cash equivalents at the end of the period were HKD 53,138,000, down from HKD 64,022,000 in the previous year, showing a decline of approximately 17%[25]. - The principal portion of lease payments made was HKD 39,119,000, while interest payments on leases amounted to HKD 4,994,000, indicating a significant cash outflow related to financing activities[65]. Expenses - Administrative expenses increased to HKD 26,910,000 from HKD 19,451,000, indicating rising operational costs[5]. - The gross profit margin decreased by 5% to 26% due to obsolete inventory provisions[141]. - Distribution costs decreased by 5% to HKD 85 million, primarily due to reduced sales commissions and fees[141]. - The company reported a depreciation and amortization expense of HKD 3,310,000 for the six months ended September 30, 2019, compared to HKD 1,644,000 in the same period of 2018[102]. Corporate Governance - The board of directors has confirmed compliance with the corporate governance code, ensuring high levels of transparency and accountability to all shareholders[150]. - The company has taken sufficient measures to ensure that its corporate governance practices are not less stringent than those prescribed by the code[151]. - The company has a commitment to high-quality board governance and effective internal controls[150]. Business Operations - The group is primarily engaged in watch trading (retail and wholesale) and property leasing, indicating a focus on these sectors for future growth[28]. - The company is diversifying its business by developing its property leasing segment and has acquired two well-known residential properties in London last year[148]. - In August 2019, the company acquired a food manufacturing and retail business to further diversify its operations[148]. - The overall atmosphere of the luxury retail business in China remains stable, but recent events in Hong Kong have partially impacted business driven by tourists[147]. Shareholder Information - As of September 30, 2019, Mr. Yang Ren holds 459,801,236 shares, representing 61.54% of the total issued share capital[157]. - Major shareholders included Lin Jin-feng with 61.54% and Shih Hsiung International Limited with 38.98% of the issued share capital[163]. - The company declared a final dividend of HKD 0.0256 per share, totaling HKD 19,126,000, consistent with the previous year's final dividend[112]. Financial Risks - The group faces various financial risks, including market risk (foreign currency, interest rate, and price risks), credit risk, and liquidity risk, which are critical for financial management[68]. - The valuation process for financial instruments is led by a team under the financial manager, reporting directly to the CFO and the audit committee, ensuring rigorous oversight[79].
ASIA COMM HOLD(00104) - 2020 - 中期财报