Financial Performance - Revenue for the six months ended January 31, 2021, was HKD 42,638,000, a decrease of 48.7% compared to HKD 83,171,000 for the same period in 2020[8]. - Gross profit for the period was HKD 18,678,000, down 36.9% from HKD 29,500,000 year-on-year[8]. - The company reported a net loss of HKD 2,022,000, compared to a loss of HKD 20,689,000 in the previous year, indicating an improvement in performance[8]. - Total comprehensive income for the period was HKD 25,359,000, compared to a loss of HKD 30,524,000 in the same period last year[8]. - Basic loss per share improved to HKD (1.66) from HKD (9.21) year-on-year[8]. - The company reported a net loss of HKD 17,906,000 for the six months ended January 31, 2021, compared to a loss of HKD 12,287,000 for the same period in the previous year[10]. - Total comprehensive expenses for the period amounted to HKD 25,217,000, which includes other comprehensive expenses of HKD 7,311,000[10]. - The group reported a loss before tax of HKD 2,028,000 for the six months ended January 31, 2021, compared to a loss of HKD 12,287,000 for the same period in 2020, showing an improvement in performance[24][25]. - The hotel business incurred a segment loss of HKD 7,487,000 for the six months ended January 31, 2021, compared to a loss of HKD 17,793,000 in the previous year, indicating a reduction in losses by approximately 58%[24][25]. - The financial investment segment reported a profit of HKD 14,259,000 for the six months ended January 31, 2021, compared to a profit of HKD 2,965,000 in the same period of 2020, representing a significant increase of approximately 380%[24][25]. - The basic loss per share attributable to the owners of the company was HKD 0.017 for the six months ended January 31, 2021, compared to HKD 0.092 for the same period in 2020, indicating an improvement in loss per share[38]. - The net loss attributable to shareholders for the six months ended January 31, 2021, was HKD 3,200,000, a significant improvement from a loss of HKD 17,900,000 in the previous year[60]. Assets and Liabilities - Non-current assets increased to HKD 480,400,000 from HKD 475,780,000, reflecting a growth of 0.13%[9]. - Current assets decreased to HKD 641,972,000 from HKD 720,600,000, a decline of 10.9%[9]. - The company's total liabilities decreased from HKD 228,545,000 to HKD 129,967,000, a reduction of 43.1%[9]. - The net asset value increased to HKD 960,817,000 from HKD 935,458,000, showing a growth of 2.7%[9]. - The company’s total equity attributable to owners decreased to HKD 1,001,138,000 as of January 31, 2021, from HKD 1,023,538,000 as of August 1, 2019[10]. - The total debt-to-equity ratio as of January 31, 2021, was 16.1%, a decrease from 26.5% as of July 31, 2020[61]. - The total trade and other payables decreased from HKD 499,000 as of July 31, 2020, to HKD 227,000 as of January 31, 2021, a reduction of about 54%[45]. Cash Flow - Cash and cash equivalents decreased by HKD 102,225,000 during the period, with a beginning balance of HKD 332,456,000[12]. - The company experienced a decrease in operating cash flow, with a net cash inflow of HKD 6,571,000 compared to HKD 10,984,000 in the previous year[12]. - The company’s cash balance at the end of the period was HKD 234,610,000, an increase from HKD 209,939,000 year-over-year[13]. - The group held cash and bank balances of HKD 235,300,000 as of January 31, 2021, down from HKD 333,100,000 as of July 31, 2020[61]. - The company reported a decrease in cash generated from operating activities, primarily due to an increase in trade and other receivables by HKD 17,447,000[12]. Business Operations - The company suspended hotel operations in mainland China in January 2020 due to COVID-19, with partial recovery in August 2020, but occupancy rates and food and beverage sales remained low[15]. - Hotel business revenue for the six months ended January 31, 2021, was HKD 2,844,000, down from HKD 33,802,000 in the previous year, indicating a decrease of about 91.6%[24][25]. - The property segment generated revenue of HKD 39,794,000 for the six months ended January 31, 2021, compared to HKD 49,369,000 in the same period of 2020, reflecting a decline of approximately 19.5%[24][25]. - Property sales revenue for the six months ended January 31, 2021, was HKD 39,800,000, compared to HKD 49,400,000 in the same period last year, reflecting a decline due to external economic conditions[64]. - The occupancy rate of the group's hotel in Foshan dropped to approximately 9.7% for the six months ended January 31, 2021, with revenue of HKD 2,800,000, down from HKD 33,800,000 in the previous year[65]. Future Outlook and Strategy - The company plans to focus on market expansion and new product development to enhance future performance[5]. - The group anticipates that its financial condition will not be significantly impacted in the short term despite ongoing economic challenges due to the pandemic[70]. - The group continues to monitor foreign exchange risks associated with its subsidiaries' assets and liabilities, which are primarily denominated in RMB or HKD[62]. Shareholder Information - As of January 31, 2021, the total shareholding of Mr. Xiao in the company is 70,302,450 shares, representing 36.2% of the issued share capital[77]. - Mr. Zhu holds a total of 26,786,055 shares, which accounts for 13.8% of the issued share capital[77]. - The major shareholder, 富健, owns 64,580,625 shares, representing 33.2% of the issued share capital[82]. - Mr. Xiao is deemed to have an interest in 64,580,625 shares held through 富健, which he owns 70%[82]. - Mr. Zhu is deemed to have an interest in 25,008,555 shares held through Supervalue, which he wholly owns[83]. Corporate Governance - The audit committee reviewed the unaudited interim accounts for the six months ending January 31, 2021[84]. - The company has complied with all applicable provisions of the corporate governance code during the reporting period, with some deviations noted[85]. - The company has adopted the standard code for securities transactions by directors, confirming compliance by all directors during the reporting period[86]. - No securities transactions were conducted by the company or its subsidiaries during the six months ending January 31, 2021[87]. - The company has not engaged in any arrangements for directors to benefit from purchasing shares or bonds during the reporting period[80]. Other Financial Information - The group recognized other comprehensive income of HKD 20,536,000 during the period, contributing positively to the overall financial position[10]. - The group purchased property, plant, and equipment for a cash consideration of HKD 12,000,000 during the period, a significant decrease from HKD 490,000,000 in the previous year[40]. - The group reported a total depreciation expense of HKD 5,936,000 for the six months ended January 31, 2021, compared to HKD 5,458,000 in the same period of 2020, reflecting a slight increase in depreciation costs[27][28]. - As of January 31, 2021, the total receivables from consumer finance business customers amounted to HKD 31,086,000, an increase from HKD 13,596,000 as of July 31, 2020, representing a growth of approximately 128%[42]. - The fair value of listed equity securities in Hong Kong increased to HKD 32,902,000 as of January 31, 2021, up from HKD 26,373,000 as of July 31, 2020, reflecting a growth of about 25%[43]. - The total fair value of listed debt securities in Hong Kong decreased to HKD 47,346,000 as of January 31, 2021, down from HKD 57,298,000 as of July 31, 2020, indicating a decline of approximately 17%[43]. - The compensation for key management personnel decreased from HKD 3,129,000 for the six months ended January 31, 2020, to HKD 3,030,000 for the same period in 2021, a decline of approximately 3%[55]. - The group provided guarantees amounting to HKD 9,780,000 for mortgage loans as of January 31, 2021, significantly down from HKD 50,298,000 as of July 31, 2020, representing a decrease of about 81%[57]. - No dividends were recommended for the six months ended January 31, 2021[59].
冠中地产(00193) - 2021 - 中期财报