Revenue and Profitability - The group recorded revenue of approximately HKD 108,500,000 for the six months ended September 30, 2020, an increase of about HKD 20,300,000 or 23% compared to HKD 88,200,000 for the same period in 2019[11]. - Revenue from the garment business increased by approximately HKD 5,500,000 (6.4%) to HKD 92,100,000, driven by an increase in order volume[11]. - The newly established marketing business generated revenue of approximately HKD 14,200,000 for the six months ended September 30, 2020[11]. - The company reported revenue of HKD 108,480,000 for the six months ended September 30, 2020, an increase from HKD 88,208,000 in the same period of 2019, representing a growth of 22.9%[58]. - Gross profit for the same period was HKD 20,072,000, up from HKD 12,001,000, indicating a significant increase of 67.0%[58]. - The net profit for the period was HKD 7,636,000, compared to HKD 452,000 in the previous year, reflecting a substantial increase of 1585.2%[60]. - The company reported a profit before tax of HKD 8,597,000, with a net profit of HKD 7,636,000 for the period[87]. Financial Position - The group’s cash and bank balances totaled approximately HKD 19,300,000 as of September 30, 2020, up from HKD 12,300,000 as of March 31, 2020[22]. - Total assets as of September 30, 2020, amounted to HKD 334,247,000, an increase from HKD 310,528,000 as of March 31, 2020, representing a growth of 7.6%[63]. - The company’s cash and cash equivalents increased to HKD 19,290,000 from HKD 12,272,000, showing a rise of 57.5%[63]. - Total liabilities amounted to HKD 293,927,000, an increase from HKD 277,560,000 as of March 31, 2020, representing a growth of approximately 5.5%[65]. - Current liabilities totaled HKD 287,966,000, up from HKD 270,744,000, indicating an increase of about 6.4%[65]. - The debt-to-equity ratio increased to approximately 677.2% as of September 30, 2020, from 662.2% on March 31, 2020, due to bank and other borrowings of approximately HKD 225,500,000[24]. Expenses and Costs - Administrative expenses decreased by approximately 21.2% to HKD 7,800,000 from HKD 9,900,000 in the previous period[16]. - The total employee cost for the six months ended September 30, 2020, was approximately HKD 6,300,000, an increase from HKD 4,600,000 for the same period in 2019[41]. - Employee benefits, including salaries and other short-term benefits, amounted to HKD 974,000 for the six months ended September 30, 2020, an increase of 115.5% from HKD 452,000 in the same period of 2019[160]. - Interest expenses for bank loans and overdrafts decreased to HKD 522,000 from HKD 626,000 year-on-year, while total finance costs dropped to HKD 1,855,000 from HKD 5,767,000[114][115]. - The cost of goods sold for the six months ended September 30, 2020, was HKD 88,408,000, compared to HKD 76,207,000 in the previous year, indicating an increase of approximately 16.5%[127]. Shareholder and Governance - The company did not declare any interim dividend for the six months ended September 30, 2020, consistent with the previous year[25]. - The company’s major shareholder, Always Profit Development Limited, holds 546,448,493 shares, representing 70.47% of the issued share capital[51]. - The company maintained compliance with the corporate governance code as per the listing rules during the reporting period[53]. - The audit committee reviewed the financial statements for the six months ended September 30, 2020, and found them to be prepared in accordance with legal requirements and applicable accounting standards[55]. - The company has adopted the standard code for securities transactions by directors and confirmed compliance by all directors during the reporting period[54]. Operational Performance - The company is closely monitoring the impact of COVID-19 on its financial condition and operational performance, but the effects remain uncertain[167]. - The company plans to continue expanding its trade business, including product variety and distribution channels, to enhance profitability[19]. - The company continues to focus on expanding its marketing services and enhancing its online promotional capabilities[83]. - The company has taken measures to tighten cost control and improve cash flow, aiming for profitability and positive cash flow operations[78]. Investments and Acquisitions - The company completed the sale of its subsidiary Union Beauty Limited in August 2020 for HKD 10,000, with a net gain from the sale amounting to HKD 237,000[119][120]. - The company terminated the sale of its subsidiary Takson Sportswear Limited, which was initially agreed to be sold for HKD 38,960,000[168]. - The company did not apply any new accounting standards that would significantly impact the financial results for the current or prior periods[83]. - The group did not acquire any property, plant, and equipment during the six months ended September 30, 2020, compared to approximately HKD 1,283,000 in the same period of 2019[137]. Liabilities and Borrowings - The total bank and other borrowings amounted to approximately HKD 225,500,000 as of September 30, 2020, compared to HKD 220,500,000 as of March 31, 2020[23]. - As of September 30, 2020, the company had bank borrowings of approximately HKD 225,500,000, with no foreign exchange or interest rate hedging policies in place[33]. - The company had contingent liabilities related to bank financing amounting to approximately HKD 54,300,000[40]. - The utilized amount of bank financing was approximately HKD 3,659,000 as of September 30, 2020, significantly reduced from HKD 10,404,000 as of March 31, 2020[157].
龙翼航空科技(00918) - 2021 - 中期财报