Revenue Performance - The company's revenue from diversified travel products and services decreased from approximately HKD 77.9 million in the six months ended June 30, 2020, to about HKD 4.7 million in the current period due to travel restrictions[9]. - Revenue from the integrated development segment increased from approximately HKD 10.6 million to about HKD 15.7 million, benefiting from effective government measures and the ongoing improvement of the pandemic situation in mainland China[10]. - The company generated approximately HKD 16.9 million from promotion, event planning, and consulting services in the current period, compared to HKD 11.2 million in the previous period[10]. - The group reported revenue contribution from Hebei Tumen Tourism Development Co., Ltd. of approximately HKD 15.7 million during the period, an increase from approximately HKD 10.6 million in the same period last year[23]. - Revenue for the six months ended June 30, 2021, was HKD 47,740,000, a decrease from HKD 112,648,000 in the same period of 2020, representing a decline of approximately 57.6%[81]. - The diversified travel products and services segment reported a loss of 3,932 thousand for the period, while the property management segment reported a loss of 6,325 thousand[115]. Financial Position - Cash and cash equivalents increased from approximately HKD 179.3 million on December 31, 2020, to approximately HKD 328.9 million on June 30, 2021, mainly due to the sale of land in New Zealand and the collection of refundable investment deposits totaling approximately HKD 81.5 million[13]. - The group's current ratio was approximately 3.6 as of June 30, 2021, down from 4.4 as of December 31, 2020[45]. - Total assets as of June 30, 2021, were 902,660 thousand, an increase from 850,387 thousand as of December 31, 2020[117]. - Total liabilities increased to 200,045 thousand as of June 30, 2021, compared to 147,834 thousand as of December 31, 2020[117]. - The company's total equity attributable to owners was HKD 627,514,000, slightly up from HKD 624,820,000 at the end of 2020, showing a marginal increase of about 0.1%[90]. Operational Developments - The company completed the acquisition of Shijiazhuang Dongsheng Property Service Co., Ltd., contributing approximately HKD 10.4 million in property management and leasing-related revenue during the current period[12]. - The group completed the acquisition of all shares in Dongsheng Property Services, marking the start of its property management business[32]. - The group has been exploring property management opportunities in China since July 2020, with a conditional agreement to acquire all shares of Dongsheng Property Services for RMB 7.5 million (approximately HKD 9.14 million)[20]. - The company plans to focus on expanding its property management services and diversifying its travel products in the future[114]. Cost Management - The group reduced wages, salaries, and other benefits by 33% compared to the same period last year[13]. - Employee costs, including directors' remuneration, were approximately HKD 12.3 million for the period, down from HKD 16.0 million for the same period in 2020[54]. - The company's total expenses for wages, salaries, and other benefits decreased to 12,253,000 for the six months ended June 30, 2021, from 15,986,000 in the same period of 2020, reflecting cost-cutting measures[127]. Challenges and Future Outlook - The company continues to face challenges due to ongoing travel restrictions and the uncertain timeline for the pandemic's resolution[9]. - The group anticipates that tourism-related businesses will flourish in the long term, considering the expected steady development of the Chinese economy and rising living standards[14]. - The group will continue to adopt a prudent approach in developing other businesses to improve the interests of the group and its shareholders amid a challenging business environment[15]. Governance and Compliance - The Audit Committee has reviewed the interim results, ensuring compliance with applicable accounting standards and listing rules[78]. - The company has maintained compliance with the Corporate Governance Code, except for the separation of the roles of Chairman and CEO[75]. - The interim results for the period have not been audited but have been reviewed by the Audit Committee[78]. Shareholder Information - The company did not recommend any interim dividend for the period, consistent with the previous year[55]. - The company has not granted any share options under the 2012 Share Option Scheme since its adoption[74]. - The company expresses gratitude to shareholders and business partners for their continued support during the period[80].
东胜智慧城市服务(00265) - 2021 - 中期财报