Financial Performance - Revenue for the six months ended June 30, 2021, was HKD 81,571,000, representing an increase of 14.5% compared to HKD 71,344,000 for the same period in 2020[9] - Gross profit for the same period was HKD 23,566,000, a decrease of 6% from HKD 25,039,000 in 2020[9] - The company reported a loss before tax of HKD 8,193,000, compared to a loss of HKD 5,349,000 in the previous year, indicating a deterioration in performance[9] - Basic and diluted loss per share was HKD 3.05, compared to HKD 2.19 for the same period last year, reflecting increased losses[13] - The company reported a net loss before tax of approximately HKD 9,975,000 for the first half of 2021, compared to a loss of HKD 7,151,000 in 2020[90] - The loss attributable to the company's owners for the period was approximately HKD 9,975,000, compared to a loss of HKD 7,151,000 in 2020, with basic and diluted loss per share at HKD 0.0305[116] - The core business recorded a loss of approximately HKD 2,480,000, down from a profit of HKD 5,116,000 in the same period last year[116] Assets and Liabilities - Non-current assets totaled HKD 39,047,000 as of June 30, 2021, slightly up from HKD 38,380,000 at the end of 2020[15] - Current assets increased to HKD 122,457,000 from HKD 115,262,000, driven by higher cash balances[16] - Current liabilities decreased significantly to HKD 35,015,000 from HKD 85,042,000, indicating improved liquidity[18] - Total assets as of June 30, 2021, amounted to HKD 161,504,000, while total liabilities were HKD 48,859,000, resulting in a net asset position[50] - The company's equity attributable to owners was HKD 97,415,000, down from HKD 106,423,000 at the end of 2020[21] Revenue Breakdown - Revenue from toy products was HKD 80,527,000, up 15.8% from HKD 69,517,000 in the previous year, while revenue from novelty and decorative items decreased to HKD 1,044,000 from HKD 1,827,000[45] - Revenue from the United States significantly increased to HKD 10,698,000, up 355.5% from HKD 2,346,000 in 2020[66] - Revenue from Hong Kong rose to HKD 3,971,000, a 113.0% increase from HKD 1,860,000 in 2020[66] - The toy product segment's revenue rose by approximately 16% to about HKD 80,527,000, accounting for about 99% of total revenue, driven by sales increases in the US, Hong Kong, and Europe[117] - The revenue from the novelty and decorative products segment decreased by approximately 43% to about HKD 1,044,000, with a loss of HKD 3,584,000 compared to a loss of HKD 2,522,000 in 2020[119] Cash Flow - The net cash used in operating activities was HKD (1,633,000), an improvement from HKD (2,332,000) in the previous period[28] - The net cash generated from investing activities was HKD 44,416,000, a significant increase from HKD (1,246,000) in the prior period[29] - The company reported a net increase in cash and cash equivalents of HKD 11,918,000, compared to a decrease of HKD (4,519,000) in the previous year[31] - As of June 30, 2021, the company had cash and bank balances of approximately HKD 72,485,000, up from HKD 59,467,000 at the end of 2020[124] Operational Strategy - The company is focusing on enhancing operational efficiency and exploring new market opportunities to drive future growth[24] - The company plans to continue focusing on the development of new products and technologies to enhance market competitiveness[49] - The company aims to expand its market presence and explore potential mergers and acquisitions to drive growth[49] - The company plans to continue optimizing its product portfolio and implementing strict cost control measures to mitigate challenges posed by the COVID-19 pandemic[143] Corporate Governance - The company has adopted a code of corporate governance and has complied with the relevant provisions, except for the separation of roles between the Chairman and the CEO[156] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited consolidated interim results for the six months ending June 30, 2021[161] - The company confirmed compliance with the standard code for securities trading by directors during the six months ending June 30, 2021[160] - The company is in the process of identifying a suitable candidate to assume the role of Chairman[156] Employee and Shareholder Information - The group employed approximately 710 full-time employees as of June 30, 2021, an increase from 700 employees as of December 31, 2020[131] - As of June 30, 2021, the number of shares available for issuance under the share option plan was 32,692,360, representing approximately 10% of the company's issued shares[147] - As of June 30, 2021, the company had major shareholders including Mr. Zhai Jun with 125,297,040 shares, representing 38.33% of the issued share capital[151] - Mr. Gao Xiaorui held 119,297,041 shares, accounting for 36.49% of the issued share capital[151] Other Notable Events - The company completed the sale of Perfect Skill Limited for HKD 67,100,000, with a recognized gain of HKD 249,000 in other income[95][99] - The company did not declare an interim dividend for the first half of 2021, consistent with 2020[90] - The company did not purchase, sell, or redeem any of its listed securities on the stock exchange during the six months ending June 30, 2021[154] - The group recorded a gain of approximately HKD 346,000 from the sale of financial assets at fair value through profit or loss during the period, compared to HKD 0 in 2020[129] - The company is in discussions regarding the acquisition of over 50% equity in Sozak Oil and Gas JSC, with the deal structure involving cash and issuance of new shares[135] - The strategic cooperation agreements with various partners aim to explore opportunities in the blockchain and cryptocurrency sectors, although no transactions have been executed yet[138] - The board is committed to implementing the proposed acquisition and strategic cooperation agreements to enhance shareholder value and generate new revenue streams[143]
PERFECTECH INTL(00765) - 2021 - 中期财报