Revenue Performance - Revenue for the period was HKD 27,300,000, a decrease of 19.5% from HKD 33,800,000 in the previous year[3] - Revenue from network solutions and project services was HKD 8,600,000, a slight decrease of 3.4% from HKD 8,900,000 in the previous year[6] - Revenue from private jet management services decreased to HKD 15,200,000 from HKD 21,700,000 in the previous year[13] - Revenue for the six months ended December 31, 2020, was HKD 27,256,000, a decrease of 19% compared to HKD 33,804,000 for the same period in 2019[60] - The total revenue for the six months ended December 31, 2020, was HKD 27,256,000, with external sales from network solutions and project services contributing HKD 8,636,000[88] Loss and Financial Performance - Loss attributable to owners was HKD 49,300,000, compared to a loss of HKD 20,900,000 in the previous year[4] - Basic loss per share was HKD 1.26, up from HKD 0.53 in the previous year[5] - The net loss for the period was HKD 50,064,000, compared to a net loss of HKD 21,702,000 in the previous year, representing an increase in loss of approximately 130%[63] - The company reported a total comprehensive loss attributable to owners of the company of HKD (213,281) thousand for the six months ended December 31, 2020[73] - The company reported a loss attributable to owners of HKD 49,252,000 for the six months ended December 31, 2020, compared to a loss of HKD 20,872,000 in the same period of 2019, representing an increase of 136%[109] Investment and Asset Valuation - Fair value loss on investment properties was HKD 37,300,000, compared to HKD 6,800,000 in the previous year[17] - The company reported a fair value loss on investment properties of HKD 37,257,000, significantly higher than the loss of HKD 6,800,000 recorded in the previous year[60] - The fair value of investment properties was revalued at approximately HKD 266,846,000 as of December 31, 2020, down from HKD 301,070,000 as of June 30, 2020, reflecting a fair value loss of approximately HKD 37,257,000[112] Liabilities and Financial Obligations - Total liabilities ratio increased to 16.1% from 9.7% as of June 30, 2020[21] - Short-term bank loans increased to HKD 71,000,000 from HKD 38,000,000 as of June 30, 2020[21] - The company’s total liabilities increased to HKD 119,340,000 from HKD 88,585,000, reflecting a rise in financial obligations[68] - The company had bank borrowings of HKD 71,000,000 due within one year as of December 31, 2020, an increase from HKD 38,000,000 as of June 30, 2020[120] Corporate Governance - The board acknowledges the importance of maintaining high standards of corporate governance to protect and enhance shareholder interests[49] - The company has adopted and complied with the corporate governance code as per the Stock Exchange Listing Rules, with some deviations noted[49] - The chairman also serves as the CEO, which deviates from the corporate governance code that recommends separating these roles[49] - Independent non-executive directors do not have designated terms, which is a deviation from the corporate governance code[50] - The company has not established a nomination committee as required by the corporate governance code, believing that the entire board should review such matters[52] Future Outlook - The company anticipates a significant decline in revenue from the network and project segment due to the loss of a major client and the ongoing impact of the COVID-19 pandemic on the Hong Kong economy[24] - The property investment segment is expected to see a decrease in new rental values due to the adverse effects of the COVID-19 pandemic, with two office lease agreements expiring in 2021[24] - The private jet management segment will only return to normal once global air traffic recovers to pre-COVID levels[26] - The company expects 2021 to be a year of slow but steady recovery from the economic crisis, contingent on the effectiveness of the COVID-19 vaccine[24] Employee and Operational Metrics - Employee benefits expenses were HKD 14,215,000, down from HKD 15,353,000 in the previous year, showing a reduction in labor costs[60] - The company had a total of 38 full-time employees as of December 31, 2020, unchanged from June 30, 2020[55] - The total remuneration for key management personnel for the six months ended December 31, 2020, was HKD 4,616,000, compared to HKD 4,257,000 in 2019[137] Cash Flow and Liquidity - The company's cash and bank balances increased to HKD 16,456,000 from HKD 15,940,000, indicating a slight improvement in liquidity[65] - The net cash used in operating activities for the six months ended December 31, 2020, was HKD (22,353) thousand, compared to HKD (22,890) thousand for the same period in 2019[70] - The net cash used in investing activities for the six months ended December 31, 2020, was HKD (12,744) thousand, a decrease from HKD (20,052) thousand in 2019[70] - Cash generated from financing activities for the six months ended December 31, 2020, was HKD 35,593 thousand, compared to HKD 40,960 thousand in 2019[70] Shareholder Information - The board has decided not to declare any interim dividend for the financial period, consistent with the previous year[29] - As of December 31, 2020, Mr. Lu held a total equity interest of 32.63% in the company, amounting to 1,282,809,889 shares[30] - Major shareholder Moral Glory holds 1,246,054,889 shares, representing 31.75% of the issued share capital[41]
远见控股(00862) - 2021 - 中期财报