Financial Performance - The group's revenue increased by 6% to HKD 3,249,000,000 for the six months ended June 30, 2020, while gross profit rose by 12%[7] - The group recorded a post-tax loss of HKD 309,534,000, compared to a profit of HKD 159,876,000 in the same period last year, primarily due to fair value and impairment losses totaling HKD 437,555,000[7] - The distribution business's total revenue increased by 7% or HKD 195,154,000 to HKD 3,110,224,000, driven by new brand product distribution in Thailand[18] - The group recorded revenue of HKD 3,248,584, an increase of 6.3% compared to HKD 3,056,270 in the same period last year[25] - The gross profit for the period was HKD 282,167, representing a gross margin of 8.7%[25] - The group reported a loss before tax of HKD 379,329, compared to a profit of HKD 201,007 in the previous year[25] - The net loss attributable to the company's owners was HKD 327,542, compared to a profit of HKD 139,594 in the same period last year[25] - The group reported a total revenue of HKD 3,248,584,000, compared to HKD 3,056,270,000 in the previous period, indicating a year-on-year increase[60] Asset and Liability Management - Total assets decreased by 4% to HKD 8,946,000,000, with net asset value per share dropping from HKD 14.3 to HKD 13.0[8] - The total assets decreased to HKD 5,733,862 from HKD 6,178,484 as of December 31, 2019[33] - The net assets of the company decreased to HKD 3,609,205 as of June 30, 2020, down 9.2% from HKD 3,973,220 as of December 31, 2019[35] - As of June 30, 2020, the total non-current liabilities amounted to HKD 1,870,152, a decrease of 5.0% from HKD 1,969,014 as of December 31, 2019[35] - The company’s total equity attributable to owners decreased to HKD 3,258,281 as of June 30, 2020, from HKD 3,610,212 as of December 31, 2019, reflecting a decline of 9.7%[35] Impact of COVID-19 - The group recorded a fair value loss of HKD 361,641,000 on investment properties and an impairment loss of HKD 21,808,000 on property, plant, and equipment due to the impact of COVID-19[16] - The group's operations were significantly impacted by the COVID-19 outbreak, leading to a severe decline in hotel occupancy rates across Japan and temporary closures of several hotel properties[45] - The group anticipates that the ongoing economic challenges will continue to affect its performance in the short term, particularly in the hospitality sector[45] - The group has implemented various strategies to navigate the adverse effects of the pandemic, including adjustments in accounting policies and operational strategies[56] Cash Flow and Financing - The company reported a net cash inflow from operating activities of HKD 338,323 for the six months ended June 30, 2020, compared to HKD 55,005 for the same period in 2019, representing a significant increase[41] - Cash and cash equivalents increased by HKD 199,935 during the six months ended June 30, 2020, compared to an increase of HKD 51,433 in the same period of 2019[41] - The company’s bank borrowings stood at HKD 1,227,240 as of June 30, 2020, slightly down from HKD 1,233,510 as of December 31, 2019[35] - The company incurred a tax expense of HKD 69,795,000, compared to HKD 41,131,000 in the previous year[66] Investment Properties and Real Estate - Rental and operational income from real estate investment business decreased by 2% to HKD 138,360,000, with operating profit (excluding fair value changes and impairment losses) increasing to HKD 61,707,000 from HKD 58,212,000 year-on-year[15] - The newly opened Osaka SiS Rinku Tower hotel, with 258 rooms, partially offset the revenue decline from investment properties[16] - The group’s investment properties recorded a fair value loss of HKD 415,747, compared to a gain of HKD 191,480 in the previous year[25] - The book value of investment properties was HKD 4,365,800,000, down from HKD 4,705,311,000 as of December 31, 2019[101] Employee and Compensation - The number of employees as of June 30, 2020, was 703, an increase from 670 on June 30, 2019. Employee compensation and benefits amounted to HKD 81,654,000, down from HKD 87,381,000 in the previous year[120] - The employee compensation policy remains unchanged from the previous year, linking performance to rewards, with no stock options exercised during the six-month period ending June 30, 2020[120] - The company is actively reviewing its compensation and discretionary bonus systems annually to ensure competitiveness and alignment with performance[120] Corporate Governance - The company adhered to the corporate governance code as per the Hong Kong Stock Exchange Listing Rules throughout the period ending June 30, 2020[157] - All directors confirmed compliance with the required standards of conduct as outlined in the standard code of conduct[158] - The audit committee, composed entirely of independent non-executive directors, reviewed the interim report for the six months ending June 30, 2020, along with the company's auditors[159]
SIS INT'L(00529) - 2020 - 中期财报