Financial Performance - The Group achieved a revenue growth of 5.3% to HK$476 million for the six months ended September 30, 2021, compared to HK$452 million in the previous period[6]. - Net profit attributable to shareholders was HK$3.0 million, representing a drop of 84.0% or HK$15.7 million compared to the previous period's profit of HK$18.7 million[6]. - Basic earnings per share for the period amounted to HK0.25 cents, down from HK1.57 cents in the previous period[6]. - Total comprehensive income for the period was HK$3,821,000, down from HK$19,613,000, a decrease of 80.5%[97]. - Profit for the period decreased significantly to HK$3,152,000 from HK$18,037,000, indicating a decline of 82.5%[97]. - The Group's profit before income tax for the six months ended September 30, 2021, was HK$3,655,000, a decrease from HK$18,736,000 in the same period of 2020[140]. - The profit attributable to owners of the Company for the six months ended September 30, 2021, was HK$2,996,000, a significant decrease of 84.0% from HK$18,667,000 in the same period of 2020[157]. Revenue and Sales Trends - Sales of digital cameras and lenses dropped by 34.8% compared to the previous period, impacted by travel restrictions and global semiconductor shortages[10]. - Sales of instant cameras and films increased dramatically by 54.8% compared to the previous period, driven by the relaxation of social distancing measures[10]. - Consumer electronic products and household appliances segment saw a sales growth of 12.6%, with retail sales increasing by 9.5% and same-store sales up by 11.9%[14]. - Sales of TV sets grew by 13.1%, while audio systems sales increased by 14.0%, accounting for 86.4% of total sales in the consumer electronics segment[14]. - The imaging services segment saw an overall sales increase of 11.0% compared to the previous period, despite ongoing pandemic challenges[22]. - Sales of photo developing and processing (D&P) increased by 5.6%, while ID photo-taking sales rose by 6.9% as schools resumed normal operations[25]. Cost Management and Expenses - Advertising and marketing expenses were kept at a low level, only 0.7% of total sales during the period[6]. - The Group focused on cost control and eliminated unnecessary spending across all aspects of operations[6]. - The Group plans to adopt a cautious approach to spending, particularly in marketing and advertising, due to unfavorable market conditions[43]. Inventory and Assets - The Group maintained a healthy inventory level and adjusted product offerings to meet increasing market demand despite semiconductor shortages[14]. - As of September 30, 2021, the Group had cash and bank balances of HK$262 million and was debt-free, indicating strong financial resources[38]. - The Group's trade receivables stood at HK$59 million, while inventories were valued at HK$114 million as of September 30, 2021[39]. - Total assets as of September 30, 2021, amounted to HK$874,612,000, slightly up from HK$870,746,000 as of March 31, 2021[101]. - Total liabilities increased to HK$238,858,000 from HK$226,960,000, reflecting a rise of 5.1%[105]. Market Strategy and Product Development - The Group launched several new instant camera models during the period, including instax mini 40 and Mickey and Friends mini film[10]. - The group launched new instant camera products, including the instax mini 40 and Mickey & Friends mini film, to enhance market presence[12]. - The Group plans to expand its product portfolio to include imaging services at schools and wedding events, and to organize pop-up imaging events[32]. - The Group introduced innovative products like the B&W Nautilus speakers to capture market opportunities[14]. Shareholding and Corporate Governance - Directors' total shareholdings represent 60.11% of the company's issued share capital, with Dr. Sun Tai Lun Dennis holding 712,496,214 shares[51]. - The company has complied with the Corporate Governance Code throughout the six months ended September 30, 2021[78]. - The Company did not purchase, sell, or redeem any of its listed securities during the period[82]. - The Board does not recommend the payment of any interim dividend for the six months ended 30 September 2021[82]. Security and Compliance - An unauthorized access to certain systems and databases was discovered on 26 October 2021, but it is believed to have no material adverse impact on the Group's operation and financial position[82]. - The unauthorized access to the system and database has been investigated, and the board believes it has no significant adverse impact on the group's operations and financial condition[182]. - The group is taking appropriate measures to enhance the security of its information systems following the incident[182].
中港照相(01123) - 2022 - 中期财报