Financial Performance - The group's revenue for the six months ended June 30, 2021, was approximately HKD 2,004,000, a decrease of about 39.0% compared to HKD 3,285,000 in the same period last year[3] - The net loss for the period was approximately HKD 45,013,000, a reduction from a net loss of approximately HKD 161,113,000 in the previous year, primarily due to the absence of impairment losses recorded in the current period[3] - Revenue from leasing for the six months ended June 30, 2021, was HKD 2,004,000, a decrease of 39% compared to HKD 3,285,000 in 2020[38] - Other income, gains, and losses for the same period were HKD 1,557,000, down 84% from HKD 9,716,000 in 2020[38] - The loss attributable to the company’s owners for the period was HKD (36,821,000), compared to HKD (74,196,000) in the previous year, indicating a 50% improvement[38] - Total comprehensive loss for the period was HKD (42,542,000), significantly reduced from HKD (201,854,000) in 2020[40] - The company reported a basic and diluted loss per share of HKD 0.62 cents, compared to HKD 1.25 cents in the previous year, reflecting a 50% reduction in loss per share[38] - The company reported a pre-tax loss of HKD 45,003,000 for the six months ended June 30, 2021, compared to a loss of HKD 215,876,000 for the same period in 2020, indicating an improvement of approximately 79%[47] - The group reported a net loss of approximately HKD 45,000,000 for the six months ended June 30, 2021, with total liabilities exceeding total assets by approximately HKD 544,000,000[53] Debt and Liabilities - The total debt as of June 30, 2021, was approximately HKD 1,231,000,000, down from HKD 1,268,800,000 as of December 31, 2020[10] - The net debt amounted to approximately HKD 1,199,900,000, compared to HKD 1,229,100,000 as of December 31, 2020[10] - The capital-to-debt ratio was 166.9% as of June 30, 2021, slightly improved from 169.0% as of December 31, 2020[10] - Current liabilities decreased to HKD 314,140,000 from HKD 1,252,628,000, indicating a significant reduction in financial obligations[42] - Total borrowings amounted to approximately HKD 1,048,000,000, with around HKD 265,000,000 due for repayment within the next twelve months[53] - Major shareholders have committed to providing financial support through guarantees or loans for one year, contingent on the company's shares continuing to trade on the stock exchange[54] - The group is actively seeking alternative sources of funding and negotiating to renew existing loans with counterparties[60] Business Operations - The group did not record any revenue from the PPP primary land development business during the period, maintaining the same status as the previous year[5] - The group established a new subsidiary, Zhejiang Yaohui Energy-saving Technology Co., Ltd., to engage in LED EMC business, although no revenue has been recorded yet[6] - The group plans to support the development of LED EMC business to create stable revenue sources in the coming years[9] - The group is actively seeking new business investment opportunities while optimizing its asset allocation by divesting from underperforming gas and property businesses[8] Employee and Shareholder Information - The group has 28 employees as of June 30, 2021, down from 32 employees in the previous year, with employee costs remaining at approximately HKD 4,000,000[16] - As of June 30, 2021, the total number of issued shares was 5,943,745,741[22] - Mr. Chan Han Wai holds 798,214,445 shares, representing 13.43% of the total issued shares[22] - The agreement between Xin Jing International Limited and Mr. Chan was established on April 9, 2021, for the transfer of 50% equity interest, amounting to 798,214,445 shares[23] - No major shareholders or other individuals, apart from directors and senior management, were reported to have interests in the company's shares as of June 30, 2021[29] - The company aims to attract and retain talented individuals through its share option plan, which has a validity period of ten years from its adoption date[25] Corporate Governance - The company has adopted the Corporate Governance Code and confirmed compliance with its provisions during the reporting period, with some deviations noted[32] - The Audit Committee, composed of three independent non-executive directors, reviewed the interim financial statements for the six months ending June 30, 2021[35] - The company is committed to high standards of corporate governance to enhance shareholder value and protect shareholder interests[32] Cash Flow and Financial Position - Operating cash flow before changes in working capital was HKD (6,241,000) for the first half of 2021, a significant decrease from HKD 4,549,000 in the same period of 2020[47] - The company recorded a net cash outflow from financing activities of HKD (11,625,000) for the six months ended June 30, 2021, compared to HKD (327,020,000) in the previous year, reflecting a reduction in financing costs[49] - The total cash and cash equivalents at the end of June 30, 2021, were HKD 31,080,000, down from HKD 114,348,000 at the end of June 30, 2020, representing a decrease of approximately 73%[49] - The company’s total equity attributable to owners decreased to HKD (480,769,000) as of June 30, 2021, from HKD (501,983,000) at the beginning of the year, showing a slight improvement[45] - The company recognized a foreign exchange gain of HKD 2,362,000 during the period, contributing positively to the overall financial performance[47] Impairments and Provisions - The expected credit loss impairment was HKD (1,381,000), with no prior year figure reported[38] - The group recognized an additional impairment of HKD 225,000,000 for intangible assets during the six months ended June 30, 2020, bringing the total impairment to HKD 964,000,000 as of June 30, 2021[77] - The provision for expected credit losses on accounts receivable was HKD 37,475,000 as of June 30, 2021, compared to HKD 37,130,000 as of December 31, 2020[78] Other Financial Metrics - Administrative expenses decreased to HKD (9,204,000), a reduction of 30% from HKD (13,229,000) in 2020[38] - Financial expenses totaled HKD 44,967,000 for the six months ended June 30, 2021, compared to HKD 39,428,000 in the same period of 2020[66] - The group did not recognize any tax provision for Hong Kong profits tax due to no taxable profits generated during the period[67] - The group is expected to have sufficient operating funds to meet its current requirements for at least the next twelve months[57]
幸福控股(00260) - 2021 - 中期财报