Financial Performance - For the six months ended June 30, 2021, the group recorded revenue of HKD 263.4 million, an increase of 135.4% compared to HKD 111.9 million for the same period in 2020[7]. - The net loss for the period decreased by 14.8% to HKD 31.2 million, down from HKD 36.6 million in the previous year, primarily due to cost-saving measures and reduced losses in the securities investment sector[7]. - The toy division reported a revenue increase of 135.4% to HKD 263.4 million, recovering from the impact of COVID-19 in 2020, although it still recorded a loss of HKD 25.9 million[8]. - The securities investment segment achieved a profit of HKD 93,000 for the period, a significant improvement from a loss of HKD 3.2 million in the same period last year[9]. - The gross profit for the same period was HKD 6,184,000, recovering from a gross loss of HKD 8,547,000 in 2020[22]. - The company expects positive business performance in its toy division for the second half of the year, with increased orders and improved gross margins[20]. - The company reported a net loss of approximately HKD 31,223,000 for the six months ended June 30, 2021, compared to a net loss of HKD 36,579,000 for the same period in 2020, indicating a 14% improvement in losses year-over-year[40]. - The group reported a pre-tax loss of HKD 32,262,000 for the six months ended June 30, 2021, compared to a loss of HKD 35,972,000 in the same period of 2020, indicating an improvement in performance[57]. Assets and Liabilities - As of June 30, 2021, the group's current assets amounted to HKD 366.7 million, up from HKD 222.4 million at the end of 2020, with a current ratio of 0.66[11]. - The total loan amount as of June 30, 2021, was HKD 263.3 million, compared to HKD 232.9 million at the end of 2020[11]. - The group's equity attributable to owners decreased by 76.1% to HKD 9.06 million, primarily due to the losses recorded during the period[12]. - The capital debt ratio as of June 30, 2021, was approximately 98%, up from 90% at the end of 2020[12]. - Total liabilities as of June 30, 2021, amounted to HKD 556,767,000, compared to HKD 422,621,000 at the end of 2020, reflecting an increase in financial obligations[28]. - The company’s total liabilities exceeded its current assets, resulting in a net current liability of approximately HKD 190,100,000 as of June 30, 2021[40]. - The company has a total bank borrowings of HKD 263,301,000, which are due within the next twelve months, against cash reserves of HKD 46,760,000, indicating a liquidity challenge[40]. - Trade payables increased significantly to HKD 241,059,000 as of June 30, 2021, from HKD 140,590,000 as of December 31, 2020, marking a 71.5% increase[84]. Cash Flow and Investments - The net cash used in operating activities for the six months ended June 30, 2021, was HKD 28,266,000, an improvement from HKD 85,836,000 in the same period of 2020, representing a reduction of about 67%[35]. - The company’s investment activities generated a net cash inflow of HKD 1,101,000 for the six months ended June 30, 2021, compared to HKD 19,804,000 in the same period of 2020, reflecting a decrease of approximately 94%[35]. - The company plans to sell a subsidiary engaged in investment properties for approximately HKD 48,071,000 to improve liquidity[42]. - The company is implementing cost-saving measures to improve operational cash flow and meet working capital needs[42]. - The company is considering other necessary financing arrangements to increase equity and liquidity[42]. Workforce and Operations - Employee count increased to approximately 2,650 as of June 30, 2021, up from 2,298 a year earlier, indicating growth in workforce[19]. - The company plans to invest in production automation facilities to enhance efficiency and streamline departmental collaboration[20]. - Employee benefits expenses, including directors' remuneration, amounted to HKD 54,657,000, slightly up from HKD 54,411,000 in the previous year, showing a marginal increase of 0.5%[67]. Shareholder Information - Major shareholder Zhongce Group Limited held 651,995,472 shares, representing 17.80% of the issued share capital as of June 30, 2021[114]. - The issued and paid-up share capital remained at 3,661,865 thousand shares, valued at HKD 366,186 thousand as of June 30, 2021[88]. - The company did not declare or pay any dividends during the interim period[68]. Fair Value and Financial Instruments - The fair value of investment properties as of June 30, 2021, was HKD 59,608,000, down from HKD 106,702,000 at the end of 2020, representing a decrease of approximately 44.0%[73]. - The fair value measurement of financial instruments is based on observable market data where available, with a classification into three levels of input data[94]. - The company reported no significant changes in the fair value of financial assets and liabilities based on discounted cash flow analysis[97]. - The company has engaged third-party qualified valuers for fair value estimation when market observable data is not available[94]. Legal and Compliance - The company is currently investigating a lawsuit regarding a deposit of RMB 20,000,000 related to a land use change agreement[106].
瀛晟科学(00209) - 2021 - 中期财报