Financial Performance - The group recorded a revenue of approximately HKD 2,700,000 for the six months ended September 30, 2020, a decrease of 87.4% compared to HKD 21,500,000 in the same period last year due to the impact of COVID-19 and the temporary closure of all casinos in Cambodia [6]. - The net loss for the period was approximately HKD 6,200,000, a reduction of 54.1% from HKD 13,500,000 in the previous year, primarily due to decreased revenue and amortization of intangible assets [6]. - For the six months ended September 30, 2020, the company reported revenue of HKD 2,709,000, a decrease of 87.4% compared to HKD 21,480,000 in the same period of 2019 [51]. - The gross profit for the same period was HKD 2,109,000, down 71.5% from HKD 7,412,000 in 2019 [51]. - The company incurred a loss before tax of HKD 6,566,000, an improvement of 52.0% compared to a loss of HKD 13,726,000 in the previous year [51]. - The net loss attributable to owners for the period was HKD 6,168,000, compared to a loss of HKD 13,360,000 in 2019, reflecting a 53.8% reduction in losses [54]. - The basic and diluted loss per share for the period was HKD 0.48, compared to HKD 1.17 in the same period last year [54]. Assets and Liabilities - As of September 30, 2020, the group's total assets and net assets were approximately HKD 146,800,000 and HKD 4,000,000, respectively, down from HKD 157,000,000 and HKD 10,100,000 as of March 31, 2020 [9]. - The company's total liabilities as of September 30, 2020, were HKD 137,814,000, compared to HKD 129,231,000 as of March 31, 2020 [59]. - The company's total equity as of September 30, 2020, was HKD 3,973,000, down from HKD 10,141,000 as of March 31, 2020 [60]. - The company's non-current assets totaled HKD 90,310,000 as of September 30, 2020, compared to HKD 106,414,000 as of March 31, 2020 [59]. - Current liabilities net amounted to HKD (81,342,000) as of September 30, 2020, compared to HKD (78,621,000) as of March 31, 2020 [60]. Operational Changes - The company signed a lease and operation agreement for a new casino location in Dara Sakor, Koh Kong Province, with a lease term from October 1, 2020, to September 30, 2035, expected to reopen by January 31, 2021 [11]. - The company terminated its licensing agreement for the VIP room operations in Cambodia effective June 1, 2020, to reduce cash outflows during the COVID-19 pandemic [17]. - The group adopted a conservative approach to its operations due to market uncertainties, contributing approximately HKD 2,700,000 in revenue from AR/VR applications during the review period [13]. - The company will continue to implement strict cost control measures to mitigate operational risks and reduce cost burdens [19]. Shareholder Information - The company has a total of 307,366 shares held by East Legend Holdings Limited, with Mr. Wu Wenxin having rights to these shares [31]. - As of September 30, 2020, major shareholders include Ms. Zheng Huimin with 96,212,121 shares (7.50%), Mr. Huang Weiqiang with 86,900,000 shares (6.78%), and Mr. Huang Jinhuan with 82,542,121 shares (6.44%) [32][33]. - The total number of ordinary shares issued increased to 1,282,475 thousand shares as of September 30, 2020, from 1,232,475 thousand shares on April 1, 2020, due to the conversion of convertible bonds [136]. Regulatory and Market Environment - The new Comprehensive Resort and Commercial Gambling Management Law (LMCG) was implemented in Cambodia on November 21, 2020, aimed at promoting tourism and creating job opportunities [19]. - The Dara Sakor area in Cambodia is designated as a preferential zone for developing new integrated resorts, presenting growth opportunities for the company [19]. - The number of international visitors to Cambodia decreased by 64.6% to 1.18 million in the first half of 2020, resulting in a tourism revenue loss of USD 5 billion [10]. Corporate Governance - The company continues to maintain high levels of corporate governance, emphasizing transparency and accountability [44]. - The board of directors believes that the dual role of the chairman and CEO provides strong leadership and benefits the company's strategic planning [45]. - The company has adopted a standard code for securities trading by directors, ensuring compliance throughout the review period [43]. Cash Flow and Financing - Cash and cash equivalents increased to HKD 3,650,000 as of September 30, 2020, from HKD 3,217,000 as of April 1, 2020 [66]. - The net cash used in operating activities was HKD (8,021,000) for the six months ended September 30, 2020, an improvement from HKD (18,902,000) in the same period of the previous year [66]. - The company’s cash flow from financing activities generated HKD 8,422,000 for the six months ended September 30, 2020, compared to HKD 21,080,000 in the previous year [66]. Share Options and Employee Compensation - The 2012 Share Option Scheme was adopted on September 12, 2012, and is effective for ten years [34]. - The number of unexercised share options granted under the 2012 Scheme as of September 30, 2020, totals 66,182,000 options [40]. - The company aims to incentivize and reward eligible individuals contributing to the group through the share option scheme [34]. - The company emphasizes the importance of human resources and offers competitive compensation to retain talented employees [25]. Related Party Transactions - Significant related party transactions include the disclosure of director remuneration for the six months ended September 30, 2020 [153].
世纪娱乐国际(00959) - 2021 - 中期财报