Financial Performance - For the six months ended August 31, 2021, the company reported revenue of HKD 80,184,000, a decrease of 1.9% compared to HKD 81,756,000 in the same period of 2020[7]. - The cost of sales for the same period was HKD 39,546,000, down from HKD 45,293,000, reflecting a reduction of 12.5%[7]. - The company recorded a loss before tax of HKD 61,128,000, an improvement from a loss of HKD 72,298,000 in the prior year, indicating a decrease in losses of 15.4%[7]. - The total comprehensive loss for the period was HKD 38,968,000, significantly lower than HKD 84,026,000 in the previous year, representing a reduction of 53.7%[11]. - The company reported a net loss attributable to equity holders of HKD (426,958,000) for the six months ended August 31, 2021, compared to a loss of HKD (472,954,000) for the same period in the previous year[15]. - The group recorded a net loss of approximately HKD 61,128,000 for the six months ended August 31, 2021[26]. - The loss attributable to equity holders for the same period was approximately HKD 60.6 million, a reduction of about HKD 11.3 million or 15.8% year-on-year[115]. Assets and Liabilities - Non-current assets decreased to HKD 265,865,000 from HKD 297,573,000, a decline of 10.7%[13]. - Current assets increased to HKD 301,800,000 from HKD 274,328,000, an increase of 10.1%[13]. - The company reported a net current liability of HKD 171,183,000, an improvement from HKD 243,678,000 in the previous period[13]. - The total non-current liabilities decreased to HKD 2,761,000 as of August 31, 2021, down from HKD 25,490,000 as of February 28, 2021[15]. - The company’s total assets decreased to HKD 91,921,000 as of August 31, 2021, from HKD 28,405,000 as of February 28, 2021[15]. - As of August 31, 2021, the group's current liabilities net amounted to approximately HKD 171,183,000, while cash and bank balances were approximately HKD 117,063,000[26]. Cash Flow and Financing - The net cash flow from operating activities was HKD (49,721,000) for the six months ended August 31, 2021, compared to HKD (37,718,000) for the same period in 2020[20]. - The company recorded a net cash flow from financing activities of HKD 82,550,000 for the six months ended August 31, 2021, an increase from HKD 46,622,000 in the previous year[20]. - The company’s cash and cash equivalents at the end of the period were HKD 117,063,000, compared to HKD 20,958,000 at the end of the previous year[20]. - The group successfully secured a new loan of HKD 152,000,000 from a wholly-owned subsidiary, which was used to repay other loans of HKD 150,000,000[27]. - A transitional loan of up to HKD 40,000,000 was obtained for additional working capital, later revised to HKD 100,000,000 with an interest rate of 8.2%[28]. - The group has unutilized trade financing of approximately HKD 54,317,000 as of August 31, 2021[27]. - The group had cash and bank balances of approximately HKD 117,063,000 as of August 31, 2021[123]. Operational Strategy - The company has not provided specific guidance for future performance but continues to focus on cost management and operational efficiency[6]. - The company is exploring opportunities for market expansion and potential acquisitions to enhance its growth strategy[6]. - Management is implementing measures to improve profitability and cash flow, including revising marketing strategies and negotiating rent reductions[26]. - The group is closely monitoring its financial performance and liquidity to assess its ability to continue as a going concern[26]. - The group is cautiously optimistic about future prospects, supported by the new controlling shareholder, Wei Lu[119]. Shareholder and Governance - The company is under the control of Wealth Group Holdings Limited following a voluntary conditional cash offer completed in the current year[22]. - The company has adopted the corporate governance code as per the listing rules, ensuring compliance with the standards set forth, except for specific provisions A.2.1, A.4.1, and A.6.7 during the review period[156]. - The company appointed Dr. Lin and Ms. Su as Chairman and CEO respectively on June 11, 2021, thus complying with the corporate governance code provision A.2.1 thereafter[158]. - Major shareholders include Meilin Holdings Limited and Wei Lu Group Holdings Limited, each holding 985,471,362 shares, representing 75.00% of the issued shares[136]. Market and Revenue Segments - The department store business recorded revenue of approximately HKD 79.6 million, down 2.1% from HKD 81.3 million in the previous year[116]. - Revenue from customer contracts for the six months ended August 31, 2021, was HKD 80,184, a decrease of 1.9% compared to HKD 81,756 for the same period in 2020[46]. - Sales of self-owned goods generated revenue of HKD 61,530 for the six months ended August 31, 2021, compared to HKD 61,189 in 2020, reflecting a slight increase[46]. - The group’s operating segments include department store operations, securities trading, and property leasing, each representing different business strategies and risk profiles[39]. Legal and Compliance Issues - The company is currently involved in legal proceedings regarding claims from a former director amounting to HKD 8,244,000 related to unpaid remuneration[104]. - The next hearing for the labor tribunal claim related to the former director's claims is scheduled for November 1, 2021[107]. - The group is taking necessary remedial measures in response to compliance issues and is in discussions with the regulatory authority[109].
先施(00244) - 2021 - 中期财报