Financial Performance - The company recorded a profit attributable to owners of HKD 24,371,000, compared to a loss in the same period last year[7]. - Revenue increased by 60% from HKD 3,248,584,000 to HKD 5,183,858,000 in the first half of 2021[7]. - Gross profit grew by 10% during the same period[7]. - The company achieved a profit of HKD 33,771,000 from securities investments, recovering from a loss of HKD 37,558,000 in the previous year[18]. - The company reported a profit before tax of HKD 85,430 thousand, a significant recovery from a loss of HKD 379,329 thousand in the previous year[25]. - Net profit for the period was HKD 68,002 thousand, compared to a loss of HKD 309,534 thousand in 2020, marking a turnaround in financial performance[30]. - Basic earnings per share for the period was HKD 8.77, a substantial improvement from a loss per share of HKD 117.8 in the prior year[25]. - The company reported a loss of HKD 379,329,000 before tax for the period[64]. - The company reported a loss of HKD 328,054,000 for the six months ended June 30, 2020, while for the same period in 2021, the loss narrowed to HKD 24,371,000[79]. Revenue Breakdown - The distribution business revenue rose by 62% to HKD 5,051,943,000, driven by an expanded product range and enhanced e-commerce activities[17]. - The total revenue for the period ended June 30, 2021, was HKD 5,183,858,000, with customer contract revenue contributing HKD 5,069,566,000[57]. - The revenue from information technology products was HKD 5,026,139,000, while hotel operations generated HKD 17,623,000[57]. - The company’s rental income from investment properties was HKD 114,292,000[57]. - The company’s commission income was HKD 25,804,000, with additional income from food and beverage operations amounting to HKD 9,208,000[57]. - The company’s revenue from Thailand was HKD 3,810,647,000, while revenue from Hong Kong was HKD 1,241,296,000[61]. Assets and Liabilities - Total assets amounted to HKD 9,115,166,000 as of June 30, 2021[7]. - Total assets as of June 30, 2021, were HKD 5,558,752 thousand, down from HKD 5,798,470 thousand at the end of 2020[33]. - The company’s total liabilities exceeded current assets by HKD 613,877,000, raising concerns about liquidity management[46]. - The group’s total assets, including investment properties, were valued at HKD 4,084,555,000 as of June 30, 2021, down from HKD 4,199,372,000 as of December 31, 2020[107]. - The group’s cash and cash equivalents decreased from HKD 450,733,000 to HKD 436,875,000, a decrease of approximately 3%[107]. - The current ratio of the group as of June 30, 2021, was approximately 0.85, compared to 0.88 as of December 31, 2020[125]. - The debt-to-equity ratio as of June 30, 2021, was 104%, down from 107% as of December 31, 2020[126]. Cash Flow - The net cash used in operating activities for the six months ended June 30, 2021, was HKD (2,551,000), a significant decrease compared to HKD 338,323,000 in the same period of 2020[44]. - The net cash generated from investing activities was HKD 3,298,000, contrasting with a net cash outflow of HKD (63,917,000) in the previous year[44]. - The net cash generated from financing activities was HKD 83,725,000, compared to a net cash outflow of HKD (74,471,000) in the same period last year[44]. - The total cash and cash equivalents as of June 30, 2021, amounted to HKD 920,090,000, an increase from HKD 872,788,000 at the end of the previous year[44]. - The company sold part of its interest in a subsidiary, resulting in proceeds of HKD 75,705,000, which contributed to the increase in cash flow from financing activities[44]. Investment and Capital Expenditures - The company’s investment in properties, plant, and equipment for the six months ended June 30, 2021, was HKD (8,896,000), a decrease from HKD (11,507,000) in the same period of 2020[44]. - The company’s capital expenditures for investment properties were approximately HKD 4,386,000 for the six months ended June 30, 2021, significantly lower than HKD 52,566,000 for the same period in 2020[131]. - The group recognized an impairment of HKD 21,808,000 for property, plant, and equipment due to indications of impairment from a hotel property temporarily closed due to COVID-19[87]. - The company has committed capital expenditures of HKD 1,040,000 for property renovations as of June 30, 2021[17]. Shareholder Information - The company holds 66.90% of its issued share capital, with significant shareholdings by directors and their associates, indicating strong insider ownership[136]. - Mr. Lin Jia Ming and his family collectively hold a 66.49% equity interest in the company, which includes indirect ownership of 48,346,978 shares of ITCL[151]. - Mr. Lin Jia Ming directly holds 59,210,840 shares of ITCL, representing approximately 46.05% of ITCL's issued share capital[152]. - The total number of shares held by major shareholders amounts to 14,066,000, representing 5.06% of the company's issued share capital[159]. 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, 2021[164]. - The audit committee, composed entirely of independent non-executive directors, reviewed the interim report for the six months ending June 30, 2021, including accounting policies and practices[166]. Employee Information - The number of employees increased to 798 as of June 30, 2021, compared to 703 on June 30, 2020, with total employee compensation and benefits amounting to HKD 94,337,000, up from HKD 81,654,000 in the previous year[129]. - The remuneration paid or payable to directors was HKD 6,254,000 for the six months ended June 30, 2021, down from HKD 7,939,000 for the same period last year, a decrease of about 21%[109]. Risk Management - The company currently has no comprehensive currency hedging policy but monitors currency fluctuation risks and considers hedging significant currency risks when necessary[130]. - The company’s management is actively monitoring currency risks associated with transactions denominated in USD, AUD, SGD, JPY, and RMB[130].
SIS INT'L(00529) - 2021 - 中期财报