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星岛(01105) - 2020 - 中期财报
SING TAOSING TAO(HK:01105)2020-09-09 08:41

Financial Performance - Revenue for the six months ended June 30, 2020, was HK$400,201,000, a decrease of 36.6% compared to HK$631,404,000 in the same period of 2019[6] - Gross profit for the same period was HK$125,479,000, down 42.6% from HK$219,181,000 in 2019[6] - Loss for the period was HK$61,297,000, compared to a loss of HK$7,687,000 in the prior year, representing an increase in loss of 696.5%[8] - Basic and diluted loss per share attributable to ordinary equity holders was HK$6.98, compared to HK$0.89 in 2019[6] - The total comprehensive loss for the period was HK$64,598,000, which includes a loss of HK$61,297,000 attributed to owners of the company[12] - The Group reported a loss before tax of HK$66,000,000 for the six months ended June 30, 2020, compared to a profit before tax of HK$1,000,000 in the same period of 2019[47] - The consolidated loss for the period was approximately HK$61.3 million, compared to a loss of approximately HK$7.7 million for the same period in 2019, indicating a significant deterioration in financial performance[92] Assets and Liabilities - Total non-current assets as of June 30, 2020, were HK$1,414,007,000, down from HK$1,472,789,000 at the end of 2019[10] - Total current assets decreased to HK$857,878,000 from HK$917,974,000 at the end of 2019[10] - Total current liabilities were HK$202,676,000, a decrease from HK$251,512,000 at the end of 2019[10] - Net assets as of June 30, 2020, were HK$1,940,954,000, down from HK$2,003,348,000 at the end of 2019[10] - The retained profits decreased to HK$1,037,182,000 from HK$1,098,299,000, reflecting a decline of approximately 5.6%[12] - Trade receivables as of June 30, 2020, amounted to HK$222,952,000, down from HK$298,403,000 as of December 31, 2019[63] - The total trade receivables after impairment stood at HK$206,796,000 as of June 30, 2020, compared to HK$285,736,000 at the end of 2019[63] - Trade payables as of June 30, 2020, were HK$29,568,000, down from HK$37,579,000 at the end of 2019[75] Cash Flow - The net cash flows from operating activities for the period were HK$14,193,000, compared to HK$12,560,000 for the same period in 2019, indicating a 13% increase[18] - The company experienced a net cash inflow from investing activities of HK$21,515,000, contrasting with a net outflow of HK$19,783,000 in the previous year[18] - Cash and cash equivalents at the end of the period stood at HK$424,987,000, an increase from HK$386,007,000 at the end of June 2019[18] - As of June 30, 2020, the Group maintained a cash balance of approximately HK$474 million, a slight decrease from HK$480 million as of December 31, 2019[126] Revenue Sources - Revenue from contracts with customers for the six months ended June 30, 2020, was HK$396,707,000, a decrease of 36.8% compared to HK$628,305,000 for the same period in 2019[36] - Advertising income decreased to HK$277,493,000, down 43.0% from HK$486,716,000 in the previous year[37] - Circulation income fell to HK$71,718,000, a decline of 20.3% from HK$90,007,000 in 2019[37] - The Group's gross rental income from operating leases was HK$3,494,000, a slight increase from HK$3,099,000 in 2019[36] Taxation - Total tax charge for the period was a credit of HK$455,000, compared to an expense of HK$4,060,000 in the prior year[52] - The effective tax rate remained stable at 16.5% for both periods under review[50] Shareholder Information - The company did not declare any interim dividend for the six months ended June 30, 2020, whereas an interim dividend of HK$3.5 cents per share was declared in the prior period[61] - The weighted average number of ordinary shares in issue during the period was 878,178,395 for 2020, up from 866,106,337 in 2019[58] - The Group's issued and fully paid ordinary shares increased to 878,526,347 as of 30 June 2020, up from 876,622,987 shares as of 31 December 2019[78] Market Conditions - Total advertising spending in Hong Kong fell by an unprecedented 31% in the first half of 2020 compared to the first half of 2019, severely impacting the media industry[93] - The Group's newspaper operations experienced a 48% decline in total advertising spending for the first half of 2020, marking the worst performance on record[95] - The overall advertising market in Hong Kong was severely impacted by the COVID-19 pandemic, affecting both paid and free newspaper segments[101][103] Digital and New Media - The Group's digital marketing company enhanced its advertising solutions by partnering with MTR Corporation Limited to extend its reach[121] - The Group plans to adapt to the "new normal" under COVID-19 by improving its new media capabilities to meet changing customer preferences[122] - The demand for reliable media has increased during the pandemic, highlighting the importance of factual and objective news[124] Employee and Management - Short-term employee benefits for key management personnel totaled HK$10,054,000, down from HK$12,128,000 in the previous year[83] - Competitive salaries and benefits are provided to attract and retain quality staff, including medical insurance and discretionary bonuses[126] - The Group had approximately 1,305 employees as of June 30, 2020[126] Corporate Governance - The company has complied with the Corporate Governance Code throughout the period, with some deviations noted[175] - The company confirmed compliance with the Model Code for Directors' Securities Transactions throughout the reporting period[176] - The audit committee has reviewed the unaudited consolidated financial statements for the period, focusing on risk management and internal control systems[177]