Revenue Performance - For the six months ended June 30, 2019, the total revenue reported by Paradise Entertainment Limited was HKD 592 million, an increase of 5.0% compared to HKD 563.9 million for the same period in 2018[7]. - Revenue from electronic gaming equipment and systems sales increased to HKD 89.3 million, up from HKD 49.9 million in the previous year, representing an increase of 78.8%[7]. - The revenue from the gaming operations at the Casino Kam Pek Paradise was HKD 347 million, down from HKD 374.6 million in the previous year, while the Casino Waldo's revenue increased to HKD 152.2 million from HKD 134.6 million[7]. - Total gaming revenue generated by the group’s two managed casinos was HKD 636,500,000 for the six months ended June 30, 2019, a decrease of 7.4% from HKD 687,500,000 in the same period of 2018[18]. - The segment revenue from management services was HKD 499,162,000, while the entertainment systems segment generated HKD 92,801,000, indicating a significant increase in entertainment systems revenue of 69% compared to HKD 54,766,000 in 2018[145]. Profitability Metrics - Adjusted EBITDA for the six months ended June 30, 2019, was HKD 63.3 million, a 6.0% increase from HKD 59.7 million for the same period in 2018[8]. - The adjusted EBITDA from the group's managed casinos was HKD 66.3 million, a decrease of 15.5% from HKD 78.5 million in the previous year, primarily due to temporary suspension of live mixed gaming machines for upgrades[11]. - The group managed to achieve a profit of HKD 23.8 million for the period, compared to HKD 26.3 million in the previous year[8]. - The group recorded a profit of HKD 23,800,000 for the six months ended June 30, 2019, a decrease of 9.5% from HKD 26,300,000 for the same period in 2018[13]. - Net profit for the period was HKD 23,793,000, compared to HKD 26,321,000 in the previous year, indicating a decrease of 9.6%[75]. Financial Position - The group's total assets as of June 30, 2019, were HKD 625.7 million, a decrease of 0.5% from HKD 628.7 million on December 31, 2018[31]. - Cash and cash equivalents, including pledged bank deposits, totaled HKD 301.6 million as of June 30, 2019[32]. - As of June 30, 2019, the total bank borrowings amounted to HKD 86,500,000, with an asset-to-equity ratio of 14.2%[34]. - The company's equity attributable to owners was HKD 575,520,000, slightly down from HKD 582,915,000[77]. - Total liabilities decreased to HKD 231,349,000 from HKD 254,655,000, indicating a reduction of 9.1%[77]. Cash Flow and Investments - For the six months ended June 30, 2019, the net cash generated from operating activities was HKD 37,011,000, compared to HKD 35,067,000 for the same period in 2018, representing an increase of approximately 5.5%[84]. - The company reported a net cash outflow from investing activities of HKD 24,517,000 for the six months ended June 30, 2019, significantly improved from HKD 54,352,000 in the same period of 2018[84]. - The company’s investment in property, plant, and equipment for the six months ended June 30, 2019, was HKD 10,009,000, compared to HKD 7,184,000 in the same period of 2018, indicating a focus on capital expenditure[84]. - The company reported capital expenditures on property, plant, and equipment of 10,101,000 HKD for the six months ended June 30, 2019, compared to 13,110,000 HKD for the same period in 2018, indicating a decrease of approximately 22.9%[169]. Shareholder Information - The group’s directors and senior management held a total of 630,960,880 shares, representing approximately 59.96% of the issued shares as of June 30, 2019[47]. - As of June 30, 2019, major shareholders include August Profit Investments Limited with 630,836,720 shares (59.95%), and FIL Limited, Pandanus Partners L.P., and Pandanus Associates Inc. each holding 77,504,000 shares (7.37%)[53]. - The company had a total of 1,052,185,000 shares issued and fully paid as of June 30, 2019, unchanged from previous periods[194]. Corporate Governance and Compliance - The company has complied with the corporate governance code during the six months ending June 30, 2019, with some deviations noted[61]. - The mid-term report and unaudited consolidated financial statements for the six months ending June 30, 2019, were reviewed by the audit committee and independent auditor Deloitte[64]. - The company has adopted a share option scheme to incentivize qualified participants, with a total of 105,218,531 share options available for issuance, representing 10% of the issued shares as of May 25, 2017[49]. Research and Development - The group is focused on R&D to enhance its product offerings and aims to expand its market share in the global gaming industry[29]. - Research and development expenses for the six months ended June 30, 2019, amounted to HKD 44,247,000, compared to HKD 30,289,000 in the same period of 2018, marking an increase of 46%[155]. - The group increased its investment in new and upgraded ETG gaming machines, leading to R&D and other costs rising from HKD 29,700,000 to HKD 42,600,000 for the six months ended June 30, 2019[12]. Lease and Financial Reporting - The company has adopted the new Hong Kong Financial Reporting Standard 16 regarding leases, which may impact future financial reporting[91]. - The group recognizes right-of-use assets separately in the consolidated statement of financial position[100]. - Lease liabilities are measured at the present value of unpaid lease payments at the lease commencement date, using the incremental borrowing rate if the interest rate is not readily determinable[103]. - The group recognized lease liabilities of HKD 22,150,000 and corresponding right-of-use assets of HKD 22,150,000 upon the initial application of HKFRS 16 on January 1, 2019[119].
汇彩控股(01180) - 2019 - 中期财报