PICO FAR EAST(00752) - 2020 - 中期财报

Financial Performance - Revenue for the six months ended April 30, 2020, was HKD 1,868,010 thousand, a decrease of 24.5% compared to HKD 2,474,057 thousand in the same period of 2019[2] - Gross profit for the same period was HKD 616,133 thousand, down 16.6% from HKD 739,104 thousand year-on-year[2] - Core operating profit decreased to HKD 84,300 thousand, representing a decline of 56.0% from HKD 191,965 thousand in the previous year[2] - The net profit for the period was HKD 25,177 thousand, a significant drop of 78.9% compared to HKD 119,489 thousand in 2019[3] - Basic and diluted earnings per share were both 1.95 cents, down from 9.95 cents in the prior year[2] - The company reported a total comprehensive loss of HKD 22,161 thousand for the period, compared to a comprehensive income of HKD 163,496 thousand in the same period last year[4] - The company reported a total segment profit of HKD 94,637,000 for the six months ended April 30, 2020, down from HKD 213,327,000 in the same period of 2019, indicating a decrease of about 55.7%[33] - The group reported a net profit of HKD 6,168,000 for the six months ended April 30, 2020, down from HKD 33,057,000 in 2019, with significant depreciation and amortization expenses impacting profitability[37] - Profit attributable to shareholders was HKD 24 million, compared to HKD 123 million in the previous year[55] Assets and Liabilities - Total assets as of April 30, 2020, amounted to HKD 2,770,285 thousand, a decrease from HKD 3,182,598 thousand as of October 31, 2019[6] - Non-current liabilities increased to HKD 789,132 thousand from HKD 532,350 thousand year-on-year[7] - Total liabilities increased to HKD 132.043 million from HKD 134.263 million year-on-year[47] - Current liabilities rose significantly to HKD 34.585 million from HKD 21.259 million year-on-year[47] - Trade receivables decreased to HKD 698,607,000 as of April 30, 2020, down from HKD 1,148,933,000 as of October 31, 2019, with a notable reduction in receivables aged less than 91 days[44] - Trade payables also decreased to HKD 424,711,000 as of April 30, 2020, compared to HKD 491,460,000 as of October 31, 2019, indicating improved cash flow management[46] - Total equity amounted to HKD 2,155,303,000, with retained earnings at HKD 1,574,894,000[8] Cash Flow - Cash and cash equivalents stood at HKD 1,248,443 thousand, slightly down from HKD 1,278,521 thousand in the previous year[6] - Net cash generated from operating activities was HKD 118,349,000, compared to HKD 166,255,000 in the previous year[11] - The company reported a net cash outflow from investing activities of HKD 10,019,000, a significant improvement from HKD 176,809,000 in the previous year[11] - The company experienced a net cash outflow from financing activities of HKD 106,139,000, contrasting with a net inflow of HKD 272,857,000 in the previous year[11] - Cash and cash equivalents at the end of the period were HKD 1,242,008,000, an increase from HKD 1,140,814,000 in the previous year[12] Lease and Financial Reporting Standards - The group adopted all new and revised Hong Kong Financial Reporting Standards effective from November 1, 2019, including HKFRS 16 on leases[15] - Under HKFRS 16, the group recognized right-of-use assets of HKD 256,913,000 and lease liabilities of HKD 256,913,000 as of April 30, 2020, compared to HKD 213,884,000 and HKD 213,884,000 respectively as of November 1, 2019[20] - The group chose not to recognize right-of-use assets and lease liabilities for certain low-value assets, expensing lease payments on a straight-line basis[19] - The group assessed lease terms, including options to extend, which significantly impacted the recognized lease liabilities and right-of-use assets[19] - The group classified its leases as operating leases when it acted as a lessor, with no transitional adjustments required under HKFRS 16[24] - The group applied practical expedients for leases with terms of 12 months or less, opting not to recognize right-of-use assets and liabilities[23] - The total assets increased by HKD 133,959,000 due to the recognition of additional right-of-use assets and lease liabilities upon the transition to HKFRS 16[26] - As of April 30, 2020, the company recognized right-of-use assets of HKD 259,808,000 and lease liabilities of HKD 182,656,000 due to the initial application of HKFRS 16[28] Revenue Breakdown - Revenue from the Greater China region was HKD 801,918,000 for the six months ended April 30, 2020, compared to HKD 1,475,477,000 in 2019, reflecting a decline of approximately 45.6%[33] - The company reported a decrease in revenue from the exhibition and project marketing services segment, generating HKD 1,480,562,000 for the six months ended April 30, 2020, down from HKD 2,057,309,000 in 2019, a decline of approximately 28%[32] - Revenue from visual brand experience decreased by 44.9% to HKD 81 million (2019: HKD 147 million)[57] - Revenue from museums, themed environments, interior decoration, and retail increased by 34.6% to HKD 276 million (2019: HKD 205 million)[57] - Revenue from conference and exhibition management decreased by 53.8% to HKD 30 million (2019: HKD 65 million)[57] - The number of exhibitions and projects where the company served as the designated service provider decreased by nearly 63% compared to the previous year[58] Strategic Initiatives - The company plans to continue its market expansion and product development strategies moving forward[10] - The company is continuing to diversify its client base, which helps to expand revenue sources across various industries[63] - The company has ongoing contracts with several international brands, including Infiniti and Mercedes-Benz, with projects expected to be completed in the second half of the fiscal year[63] - The group is undergoing a digital transformation strategy that has become a significant source of revenue and competitive advantage, particularly in retail smart showrooms and corporate digital exhibitions[75] - The company delivered virtual events for clients, including Huawei's Developer Conference, attracting over 10 million interactions and views[60] - A strategic alliance was formed with Migu Video to create an innovative VR virtual exhibition model, combining strengths in various digital and experiential marketing areas[61] Corporate Governance - The company has complied with the corporate governance code as per the listing rules, with a noted deviation regarding the separation of the roles of Chairman and CEO[88] - The company confirmed that all directors complied with the standard code of conduct for securities transactions during the period ended April 30, 2020[89] - The audit committee has reviewed the accounting principles and practices adopted by the group and discussed internal controls and financial reporting matters[90] Shareholder Information - Major shareholders include Pine Asset Management Limited with 462,167,186 shares, representing 37.33% of the issued share capital, and FMR LLC with 123,789,010 shares, representing 10.00%[85] - The total number of unexercised stock options as of April 30, 2020, is 5,180,000, with 2,029,000 held by directors and 3,151,000 held by employees[80] - The total expense recognized for stock options granted by the company for the six months ended April 30, 2020, is HKD 73,000, compared to HKD 53,000 for the same period in 2019[83]