PICO FAR EAST(HK:00752)2019-07-04 08:33Financial Performance - The company reported revenue of HKD 2,474,057, an increase of 8.0% compared to HKD 2,291,184 in the same period last year[1]. - Gross profit for the six months ended April 30, 2019, was HKD 739,104, representing a gross margin of approximately 29.8%[1]. - Core operating profit increased to HKD 191,965, up from HKD 182,402, reflecting a growth of 5.9% year-over-year[1]. - The net profit for the period was HKD 119,489, a decrease of 9.1% from HKD 131,494 in the previous year[2]. - Basic earnings per share decreased to 9.95 cents from 10.38 cents, a decline of 4.1%[2]. - Total comprehensive income for the period was HKD 163,496, down from HKD 206,662, indicating a decrease of 20.9%[4]. - The group’s consolidated profit before tax was HKD 152,546,000 for the six months ended April 30, 2019, down from HKD 168,926,000 in the previous year, indicating a decrease of about 10%[40]. - Profit attributable to shareholders decreased by 3.9% to HKD 123 million, down from HKD 128 million in the previous year[72]. - Basic and diluted earnings per share were HKD 123,042,000 for the six months ended April 30, 2019, compared to HKD 127,897,000 in 2018, reflecting a decline of 3.4%[50]. Assets and Liabilities - Non-current assets increased to HKD 1,620,452 from HKD 1,407,019, reflecting a growth of 15.1%[5]. - Current liabilities rose to HKD 1,993,467, compared to HKD 1,912,918, an increase of 4.2%[6]. - The company's total assets less current liabilities amounted to HKD 2,554,466, up from HKD 2,206,061, representing a growth of 15.8%[6]. - The company's equity attributable to shareholders increased to HKD 1,961,645 from HKD 1,912,441, a rise of 2.6%[6]. - Total equity amounted to HKD 1,999,862,000, reflecting an increase of 206,662,000 or 9.8% compared to the previous period[8]. - Retained earnings reached HKD 1,497,584,000, with a decrease of 11,001,000 or 0.7% from the prior period[7]. - The total net tangible assets attributable to shareholders decreased by 9.4% to approximately HKD 1.472 billion as of April 30, 2019, compared to HKD 1.624 billion on October 31, 2018[87]. Cash Flow - Cash generated from operating activities was HKD 166,255,000, a significant increase from HKD 59,988,000 in the previous year[9]. - Net cash used in investing activities was HKD (176,809,000), compared to HKD (77,626,000) in the same period last year[9]. - Cash generated from financing activities was HKD 272,857,000, contrasting with cash used of HKD (181,708,000) in the previous year[9]. - The total cash and cash equivalents at the end of the period stood at HKD 1,140,814,000, up from HKD 926,404,000 a year earlier[10]. - The group’s cash and cash equivalents increased to HKD 18,409,000 from HKD 12,711,000 year-over-year[62]. Financial Reporting Standards - The group adopted all new and revised Hong Kong Financial Reporting Standards effective from November 1, 2018, with no significant changes to accounting policies or reported amounts[12]. - The adoption of HKFRS 9 resulted in a reclassification of financial assets, including club memberships reclassified to fair value through other comprehensive income, impacting retained earnings by HKD 199,000[21]. - The group has not made significant changes to the accounting policies due to the adoption of HKFRS 9, except for the reclassification and measurement adjustments[14]. - The company has adopted HKFRS 15, which establishes a comprehensive framework for revenue recognition, with no significant impact on the recognition of construction contract revenue[31]. Revenue Segments - The exhibition and project marketing services segment recorded revenue growth of 4.9% to HKD 2.057 billion[73]. - The visual brand experience segment saw revenue increase of 2.8% to HKD 147 million[73]. - Revenue from museums, themed environments, interior decoration, and retail grew by 20.6% to HKD 205 million[73]. - The conference and exhibition management segment experienced a significant revenue increase of 261.1% to HKD 65 million[73]. - The group reported external customer revenue of HKD 2,474,057,000 for the six months ended April 30, 2019, compared to HKD 2,291,184,000 for the same period in 2018, representing an increase of approximately 8%[39]. Investments and Acquisitions - The company acquired 51% of Futr World Limited and 100% of Local Projects, LLC, with the fair value of intangible assets pending valuation completion[53]. - The company acquired MTM Choice LLC, enhancing its service offerings in the integration of physical design and digital media[84]. - The company secured significant contracts for the Tokyo 2020 Olympics, including the provision of over 5,000 temporary seats[92]. - The company anticipates completing a major contract for the Jewel Changi Airport in Singapore by June 2019[94]. - The company plans to continue its investment strategy in the UK and the US through potential acquisitions[95]. Employee and Operational Costs - Employee costs rose to HKD 453 million for the six months ended April 30, 2019, compared to HKD 393 million for the same period in 2018[91]. - The group incurred subcontracting costs of HKD 8,619,000 during the six months ended April 30, 2019, compared to HKD 14,792,000 in the previous year[68]. Corporate Governance and Shareholder Information - The company has complied with the corporate governance code, except for the deviation where the roles of Chairman and CEO are held by the same individual[108]. - As of April 30, 2019, Pine Asset Management Limited held 462,167,186 shares, representing 37.34% of the issued share capital[105]. - FMR LLC owned 122,489,610 shares, accounting for 9.90% of the issued share capital[105]. - The company did not purchase, sell, or redeem any of its listed securities during the period ended April 30, 2019[107].