Financial Performance - Total revenue for the six months ended June 30, 2021, was approximately HKD 105 million, a decrease of about 22% compared to HKD 135 million in the same period last year[5] - The group recorded a loss of approximately HKD 39 million for the period, compared to a loss of approximately HKD 26 million in the same period last year[5] - Total revenue for the six months ended June 30, 2021, was HKD 104,906,000, a decrease of 22.3% compared to HKD 135,075,000 for the same period in 2020[39] - The company reported a loss before tax of HKD 38,786,000, compared to a loss of HKD 26,430,000 for the same period in 2020, indicating a worsening financial position[39] - The company reported a net loss of HKD 38,990,000 for the six months ended June 30, 2021, compared to a loss of HKD 26,430,000 for the same period in 2020[48] - The basic and diluted loss per share for the period was HKD 1.34, compared to HKD 1.09 in the previous year, reflecting a 22.9% increase in loss per share[41] - The company recognized an impairment loss of HKD 7,500,000 related to a loan to an associate, which was not present in the previous year[39] - The company reported a segment loss of HKD 28,274,000 for the six months ended June 30, 2021, compared to a loss of HKD 16,018,000 in the same period of 2020[55] - The company reported a loss of HKD 38,990,000 for the six months ended June 30, 2021, compared to a loss of HKD 26,430,000 for the same period in 2020, representing a 47.5% increase in losses year-over-year[67] Revenue Breakdown - Revenue from frozen warehouse and related services was HKD 81,914,000, down from HKD 83,885,000, while food and beverage trading revenue dropped significantly to HKD 22,848,000 from HKD 51,000,000[39] - Revenue from cold storage and related services was HKD 81,914,000, down 2.3% from HKD 83,885,000 in the previous year[55] - Revenue from food and beverage trading dropped significantly to HKD 22,848,000, a decrease of 55.2% from HKD 51,000,000 in the prior year[54] Operational Developments - The group is converting two floors of its warehouse into a cold storage facility, expected to be operational in Q3 2021, to meet the growing demand for storage and logistics services[10] - A new B2C business segment was launched in April 2021, featuring a beverage product called "Attitude Planet," targeting the younger generation[13] - An online grocery shopping platform named "Urban Mart" was launched in Hong Kong, aimed at reaching retail customers with a variety of products[14] - The group has implemented strict cost control measures to maintain profitability in its food and beverage trading segment due to weak consumer demand during the pandemic[13] - The logistics business remains stable, supporting warehouse clients despite increased operational costs due to the pandemic[11] - The group is diversifying its customer base to attract clients with higher demand for storage and logistics services[10] - The group is focusing on e-commerce solutions to access a larger consumer base in mainland China and Hong Kong[20] Financial Position - As of June 30, 2021, the group's cash and bank balances were approximately HKD 45.1 million, down from HKD 69.8 million as of December 31, 2020[21] - The debt-to-equity ratio as of June 30, 2021, was approximately 110.7%, an increase from 68.4% as of December 31, 2020[21] - Total non-current assets decreased to HKD 266,119,000 from HKD 317,664,000, indicating a reduction of 16.2%[43] - Current assets also declined to HKD 122,238,000 from HKD 140,871,000, a decrease of 13.3%[43] - The company’s total liabilities increased to HKD 173,508,000 from HKD 169,651,000, showing a slight rise of 2.0%[45] - The company’s total equity attributable to owners decreased to HKD 49,683,000 as of June 30, 2021, from HKD 87,756,000 at the end of the previous period[46] - The company’s total assets decreased to HKD 388,357,000 as of June 30, 2021, from HKD 458,535,000 at the end of 2020, reflecting a decline of 15.3%[58] - Total liabilities also decreased to HKD 335,511,000 from HKD 367,620,000, a reduction of 8.7%[58] Cash Flow and Financing - Operating cash flow for the six months ended June 30, 2021, was HKD 16,674,000, an increase from HKD 15,247,000 in the previous year[47] - Total cash and cash equivalents at the end of the period were HKD 45,067,000, down from HKD 59,013,000 a year earlier[47] - The company incurred financing cash outflows of HKD 42,625,000, compared to HKD 71,844,000 in the previous year, indicating a reduction in financing costs[47] - The company has extended the maturity dates of two bonds totaling HKD 20,000,000 to November and December 2023, addressing liquidity risks[48] - The company’s management believes that it has sufficient working capital to meet cash flow requirements for the next twelve months[48] Risk Management and Governance - The board believes that the company has sufficient risk management and internal control procedures to meet its operational needs in the current environment[132] - The company has engaged an independent professional consultant to assess the adequacy and effectiveness of its risk management and internal control systems[131] - The risk management and internal control system evaluation plan focuses on reviewing operations in mainland China, compliance risk management, financial reporting, and follow-up on previous recommendations[131] - The board has not identified any issues that would indicate a breach in the risk management and internal control systems[132] - The company has maintained compliance with the corporate governance code, except for the absence of a chairman during the reporting period[127] Shareholder Information - The company has a total of 2,901,104,000 shares issued as of June 30, 2021[120] - The total equity held by directors Feng Baiji and He Hanzhong is 231,334,173 shares, representing 7.97% of the total issued shares[120] - The company granted a total of 116,044,160 stock options under the stock option plan, which is valid until June 1, 2025[115] - The exercise price for the stock options is HKD 0.039 per share, with a market price of HKD 0.039 at the time of grant[115] - Great Virtue Holding Limited holds 468,800,000 shares, accounting for 16.16% of the total issued shares[117] - Ever Achieve Enterprises Limited holds 202,323,133 shares, representing 6.97% of the total issued shares[117]
大同集团(00544) - 2021 - 中期财报