Financial Performance - The Group reported a turnover of HK$134.50 million for the six months ended 31 October 2019, representing a decrease of 16.27% compared to HK$160.64 million for the same period last year[9]. - The consolidated loss for the Period amounted to HK$23.91 million, an improvement from a loss of HK$33.71 million in the corresponding period in 2018[9]. - Loss per share for the Period was HK1.06 cents, compared to HK1.49 cents in 2018[9]. - Revenue for the six months ended October 31, 2019, was HK$134,499,000, a decrease of 16.3% from HK$160,638,000 in the same period of 2018[75]. - Loss for the period was HK$23,912,000, compared to a loss of HK$33,708,000 in the previous year, representing a 29.5% improvement[75]. - Total comprehensive expense for the period was HK$25,857,000, down from HK$34,064,000, indicating a 24.1% reduction[75]. - The company reported a net loss of HK$23,912,000 for the six months ended 31 October 2019, compared to a loss of HK$33,708,000 for the same period in 2018, representing a 29% improvement in loss[79]. - The company generated HK$15,547,000 from investing activities, a significant turnaround from a cash outflow of HK$2,043,000 in the prior year[81]. - The company’s total equity decreased to HK$441,920,000 as of 31 October 2019, down from HK$467,777,000 at the beginning of the period, reflecting a decline of 5.5%[79]. Expenses and Costs - Staff costs decreased to HK$38.08 million, representing 28.31% of the Group's turnover, down from 28.79% in the previous year[11]. - Other expenses decreased to HK$48.97 million, representing 36.41% of the Group's turnover, up from 31.67% in the previous year[12]. - Staff costs decreased to HK$38,078,000 from HK$46,244,000, a reduction of 17.6%[75]. - Repair and maintenance expenses increased to HK$12,361,000, up 17.5% from HK$10,523,000 in the previous year[134]. - The Group's income tax expenses for the period were HK$463,000, a decrease of 8.0% from HK$503,000 in the previous year[134]. - The impairment for inventories included in raw materials was HK$1,521,000, up from HK$609,000, indicating a significant increase in inventory impairment[134]. Assets and Liabilities - The Group's cash and bank balances amounted to HK$125.65 million as at 31 October 2019, down from HK$131.28 million as of 30 April 2019[19]. - Total outstanding debts increased to HK$17.02 million as at 31 October 2019, compared to HK$13.06 million as of 30 April 2019[19]. - The gearing ratio increased to 14.98% as at 31 October 2019, up from 2.8% as of 30 April 2019[20]. - Non-current assets amounted to HK$205,811,000 as of October 31, 2019, an increase from HK$160,853,000 as of April 30, 2019[77]. - Current assets totaled HK$359,411,000, a decrease from HK$373,609,000 as of April 30, 2019[77]. - Net current assets were HK$272,181,000, down from HK$306,924,000, reflecting a decline of 11.3%[77]. - Net assets decreased to HK$441,920,000 from HK$467,777,000, a reduction of 5.5%[77]. - The consolidated total assets as of October 31, 2019, amounted to HK$565,222,000, slightly up from HK$534,462,000 as of April 30, 2019[121]. Share Capital and Options - As of October 31, 2019, Mr. Li Tung Lok holds a total of 105,563,266 shares, representing 4.68% of the issued share capital of the Company[50]. - The Company has granted a total of 448,330,000 share options under the share option scheme, which represents 19.87% of the issued share capital as of October 31, 2019[55]. - The maximum number of shares that may be issued upon exercise of all outstanding share options must not exceed 30% of the issued share capital of the Company[55]. - The share option scheme was adopted on September 15, 2015, and is valid for 10 years[52]. - The exercise price of the options under the scheme shall not be less than the highest of the closing price on the date of offer, the average closing price for the preceding five business days, or the nominal value of a share[53]. - The number of shares in respect of which options may be granted to any one grantee in any 12-month period is limited to 1% of the shares in issue without prior shareholder approval[55]. - As of October 31, 2019, the total outstanding share options for directors amounted to 61,500,000 shares[59]. - The total outstanding share options for employees reached 386,830,000 shares, bringing the overall total to 448,330,000 shares[59]. - The company did not engage in any arrangements for directors or executives to acquire benefits through share purchases during the reporting period[60]. - There were no substantial shareholders identified with interests in the company's shares as of October 31, 2019[61]. Corporate Governance - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended October 31, 2019[63]. - The company is committed to maintaining best practice standards of corporate governance, emphasizing quality board and effective internal controls[68]. - The company complied with all code provisions of the Corporate Governance Code except for minor deviations deemed immaterial by the board[70]. - The roles of chairman and chief executive are held by Mr. Li Tung Lok, which the company believes enhances decision-making efficiency[71]. - The chairman and three independent non-executive directors were unable to attend the general meetings held on October 30, 2019, due to other engagements[72]. Market and Business Activities - The major activities of the Group's subsidiaries include investment holding, property investment, and financial services, with a focus on enhancing operational performance and production efficiency[35]. - The Group plans to strengthen its engineering and production departments to maintain competitive advantages in lead times and production flexibility[37]. - The Group will continue to explore business opportunities to expand its principal manufacturing business and improve returns to shareholders[39]. - The principal activities of the company include the manufacture and sale of integrated circuit leadframes and related products, indicating a focus on technology and manufacturing sectors[84]. - The company is actively involved in securities trading and money lending, diversifying its revenue streams beyond manufacturing[84]. - Customers are located in the USA, Hong Kong, Europe, PRC, Philippines, Malaysia, Singapore, Thailand, and other countries, indicating a diverse market presence[109]. Accounting and Reporting Standards - The company has applied new accounting standards, including HKFRS 16 on leases, which may impact future financial reporting and cash flow management[87]. - The Group adopted HKFRS 16 from May 1, 2019, recognizing lease liabilities previously classified as operating leases, measured at the present value of remaining lease payments[101]. - The Group's financial statements reflect adjustments arising from the new leasing standards recognized in the opening balance sheet on May 1, 2019[102]. - The Group's financial reporting adheres to the new and revised HKFRSs, ensuring compliance with updated accounting standards[106]. - The Group has not early adopted new or amended HKFRSs that are issued but not yet effective for the current accounting period[104].
QPL INT'L(00243) - 2020 - 中期财报