Cinema Operations - The group operates a total of 36 cinemas with 293 screens across Hong Kong, Singapore, and Taiwan as of June 30, 2021[9]. - The group plans to open two new cinemas in Hong Kong in the second half of 2021, equipped with a total of 11 screens[13]. - In Singapore, the group operates 13 cinemas with a total of 104 screens, capturing 38% of the installed screen total in the country, and accounted for 52% of the group's total revenue in the first half of 2021[18]. - In Taiwan, the group operates 15 cinemas with 163 screens, holding a market share of 39%[24][27]. - The group plans to open 4 new cinemas in Taiwan starting from 2022, which will further increase its market share[28]. - The first self-developed IP 360 theater is expected to commence operations in Q4 2021, with three additional theaters planned for 2022[7]. - A new cinema concept, "New Cinema," is set to open in Q4 2021 at Katong Mall, featuring flexible spaces for live events and themed dining experiences[18]. Financial Performance - Total admissions increased by 42% from 3.8 million to 5.4 million compared to the same period last year[9]. - Overall revenue increased by 37% to HKD 190.1 million, driven by box office growth and higher advertising profit margins, despite a decrease in gross profit margin from 65% to 61%[30]. - The group's film distribution and production business recorded revenues of HKD 29 million, an 80% increase from HKD 16.2 million in the previous year, attributed to successful releases in Hong Kong and Singapore[29]. - The net box office revenue in Singapore increased by 52% to SGD 16 million compared to SGD 10.8 million in the same period last year, driven by the reopening of cinemas without mandatory closures[18]. - The revenue from the Hong Kong segment was HKD 159,372,000, while the revenue from the Mainland China segment was HKD 137,360,000, indicating a strong performance in both markets[90]. - The group incurred an adjusted operating loss of HKD 96,280,000 for the reporting period, which is a slight improvement compared to the loss of HKD 94,299,000 in the previous year[90]. - The pre-tax loss for the six months ended June 30, 2021, was HKD 179,528,000, compared to a loss of HKD 155,421,000 for the same period in 2020[104]. Market Share and Competition - The group holds a market share of 50% in Singapore and 39% in Taiwan for box office revenue[9]. - The group continues to focus on maximizing merchandise sales and hosting events to mitigate the impact of cinema closures and enhance revenue streams[18]. - The group is actively seeking to merge with mm2 Asia Limited's subsidiary, mm Connect Pte. Ltd, to enhance its film distribution and streaming business in the region[18]. Cost Management - The group continues to focus on cost control measures and acquiring high-quality assets at discounted prices[7]. - The group reduced selling and distribution expenses by HKD 7.9 million, a decrease of 4% compared to the same period last year[33]. - Financial costs totaled HKD 28,031,000 for the six months ended June 30, 2021, down from HKD 38,263,000 in the previous year, representing a decrease of approximately 26.5%[97]. - The cost of services provided, including depreciation expenses, increased to HKD 64,273,000 from HKD 40,265,000, marking a rise of about 59.8%[97]. Assets and Liabilities - As of June 30, 2021, the group's net assets totaled HKD 1.6829 billion[35]. - The total cash and bank balances were HKD 857.7 million, down from HKD 1.0534 billion as of December 31, 2020[35]. - The company's total liabilities decreased to HKD 1,403,534 thousand as of June 30, 2021, from HKD 1,603,365 thousand as of December 31, 2020, reflecting a reduction of approximately 12.5%[65]. - The net asset value decreased to HKD 1,682,899,000 from HKD 1,882,735,000, reflecting a decline in overall equity[63]. Employee and Corporate Governance - The group employed 309 full-time employees as of June 30, 2021, down from 318 as of December 31, 2020[44]. - The company emphasizes the importance of good corporate governance for maintaining competitiveness and business growth, adhering to the corporate governance code[182]. - The company has maintained compliance with the corporate governance code, with some exceptions noted[182]. Shareholder Information - Major shareholder Wu Ke Bo holds a total of 1,723,894,068 shares, representing approximately 61.57% of the total issued shares[170]. - The company did not declare any interim dividends for the period ending June 30, 2021, consistent with the previous year[181]. - The company has adopted a stock option plan to incentivize qualified participants, but no options were granted or exercised during the six months ending June 30, 2021[167]. Future Outlook - The group aims to explore acquisition opportunities in the entertainment, technology, and fashion sectors to create synergies and enhance shareholder value[43]. - The management team continues to monitor the performance of each segment closely, using adjusted operating loss as a key performance indicator[86]. - The board expresses gratitude to management and employees for their efforts and contributions, as well as to shareholders, customers, and business partners for their trust and support[186].
橙天嘉禾(01132) - 2021 - 中期财报