Financial Performance - Sales revenue decreased from HKD 3,208,364,000 in the same period last year to HKD 3,056,270,000, representing a decline of approximately 4.7%[6] - Net profit attributable to shareholders decreased by 2% to HKD 139,594,000[6] - The company's profit for the six months ended June 30, 2019, was HKD 159,876,000, a decrease of 2.0% from HKD 164,196,000 in 2018[24] - Total comprehensive income for the period was HKD 201,710,000, up 17.9% from HKD 171,104,000 in the previous year[24] - Basic earnings per share decreased to 50.2 HK cents from 51.4 HK cents in the previous year[21] - Total revenue for the group reached HKD 3,056,270,000 with a profit of HKD 249,316,000[93] - The pre-tax profit for the period was HKD 201,007,000[93] - The basic and diluted earnings per share were based on a profit attributable to shareholders of HKD 139,594,000[108] Revenue Sources - The real estate investment portfolio's total revenue increased by 8% to HKD 141,200,000, with a classified profit of HKD 58,212,000 compared to HKD 47,620,000 in the previous year[11] - The total value of the hotel properties in Japan increased to 19 after the acquisition of a hotel in Kyoto, contributing HKD 119,048,000 in revenue[11] - Distribution business classified profit increased by 28% to HKD 66,577,000, primarily driven by contributions from Thailand[13] - Revenue from mobile and IT products amounted to HKD 2,900,662,000, while hotel operations generated HKD 14,879,000[85] - The company’s revenue from Thailand was HKD 2,455,338,000, while revenue from Hong Kong was HKD 459,732,000[85] - The company reported a total of HKD 126,321,000 from rental income of investment properties during the same period[85] Assets and Liabilities - The company's non-current assets increased to HKD 6,194,218,000 as of June 30, 2019, compared to HKD 5,734,753,000 at the end of 2018, reflecting a growth of 8.0%[27] - Investment properties rose to HKD 5,086,207,000, an increase of 10.6% from HKD 4,598,274,000[27] - Current assets increased to HKD 2,983,816,000, up from HKD 2,634,379,000, representing a growth of 13.2%[27] - The company's total liabilities increased to HKD 3,273,058,000, compared to HKD 3,033,444,000, indicating a rise of 7.9%[30] - The net assets of the company stood at HKD 4,016,078,000, an increase of 4.2% from HKD 3,855,164,000[30] - The total value of investment properties was HKD 4,795,346,000 as of June 30, 2019, compared to HKD 4,361,882,000 as of December 31, 2018[129] Cash Flow and Financing - The net cash generated from operating activities for the six months ended June 30, 2019, was HKD 55,005,000, compared to a net cash used of HKD 21,482,000 in the same period of 2018[36] - Cash used in investing activities amounted to HKD 225,809,000, a decrease from HKD 359,960,000 year-over-year[36] - New bank borrowings for the period were HKD 1,648,647,000, an increase from HKD 1,503,620,000 in the prior year[36] - The net cash from financing activities was HKD 222,237,000, down from HKD 330,752,000 in the previous year[36] - The company has a current liability exceeding current assets by HKD 289,242,000 as of June 30, 2019, but expects to continue receiving existing loan financing[38] - The net cash deficit amounted to HKD 2,631,507,000 as of June 30, 2019, compared to HKD 2,335,406,000 as of December 31, 2018[153] Dividends and Share Options - The company declared dividends amounting to HKD 19,458,000 during the period[32] - The company declared a final dividend of HKD 0.07 per share, totaling HKD 19,458,000[113] - The company has a total of 4,200,000 unexercised share options as of June 30, 2019[173] - The total number of share options granted to directors and their associates amounts to 990,000[180] - The total number of share options granted to employees and other eligible persons is 1,260,000, leading to a cumulative total of 2,250,000 share options[183] Accounting Policies and Compliance - The application of HKFRS 16 resulted in changes to accounting policies, impacting the recognition of lease liabilities and right-of-use assets[47] - The company recognized a new lease liability and right-of-use asset amounting to HKD 79,085,000 as of January 1, 2019, following the application of HKFRS 16[70] - The company will apply HKFRS 15 to allocate consideration to lease and non-lease components of contracts effective from January 1, 2019[64] - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange Listing Rules throughout the period ending June 30, 2019[189] - The audit committee, composed entirely of independent non-executive directors, reviewed the interim report for the six months ending June 30, 2019, including the accounting policies adopted[191] Employee and Management Information - The group employed 670 staff as of June 30, 2019, up from 637 a year earlier, with total employee compensation amounting to HKD 87,381,000 compared to HKD 77,066,000 in the previous year[157] - The remuneration paid or payable to directors was HKD 9,262,000, down from HKD 10,184,000 for the same period last year[133] - The group has made additional provisions for long-term employee benefits due to changes in Thai labor laws during the period[157] - The group’s compensation policy links performance to rewards and is reviewed annually without significant changes from the previous year[157]
SIS INT'L(00529) - 2019 - 中期财报