Financial Performance - Revenue for the six months ended June 30, 2021, was HK$85,063,000, a decrease of 79.9% compared to HK$422,562,000 in the same period of 2020[9] - Gross profit for the reporting period was HK$11,662,000, down 93.2% from HK$171,830,000 in 2020[9] - The company reported a loss from operations of HK$267,695,000, compared to a profit of HK$103,016,000 in the prior year[9] - Total comprehensive loss for the period was HK$253,021,000, compared to a total comprehensive income of HK$23,697,000 in the same period of 2020[9] - The company reported a loss attributable to owners of HK$214,092,000 for the six months ended June 30, 2021, compared to a profit of HK$26,720,000 in the same period of 2020, indicating a significant decline in performance[13] - Total comprehensive loss attributable to owners was HK$193,230,000 for the period, compared to a comprehensive income of HK$17,504,000 in the prior year, reflecting a worsening financial situation[13] - Basic and diluted loss per share was HK$17.89, a substantial decrease from earnings of HK$2.23 per share in the previous year[13] - The company reported a loss for the period of HK$272,667,000, compared to a profit of HK$48,961,000 in the same period of the previous year, indicating a significant decline in performance[141] Income and Expenses - Other income increased to HK$6,401,000, up from HK$2,680,000 in the previous year, representing a growth of 138.3%[9] - Administrative expenses surged to HK$231,134,000, a significant increase from HK$65,181,000 in 2020, reflecting a rise of 254.5%[9] - Impairment losses on trade and other receivables amounted to HK$48,148,000, with no such losses reported in the previous year[9] - Finance costs decreased to HK$4,112,000 from HK$7,214,000, a reduction of 43.5%[9] - Interest expenses on borrowings decreased to HK$10,334,000 from HK$11,001,000, a reduction of approximately 6.1%[144] - Total income tax provision for the period was HK$860,000, a significant decrease from HK$46,841,000 in the prior year[146] - Cost of sales significantly decreased to HK$73,401,000 from HK$250,732,000, representing a decline of approximately 70.7%[152] - Research and development expenses decreased to HK$2,463,000 from HK$11,596,000, a reduction of approximately 78.7%[152] Assets and Liabilities - Non-current assets decreased to HK$761,454,000 as of June 30, 2021, down from HK$805,870,000 at the end of 2020, indicating a reduction in long-term asset value[15] - Current assets totaled HK$2,068,341,000, a decrease from HK$2,187,925,000 at the end of 2020, suggesting a decline in liquidity[15] - Current liabilities increased to HK$1,746,580,000 from HK$1,656,639,000, indicating a rise in short-term financial obligations[17] - Net assets decreased to HK$994,883,000 as of June 30, 2021, down from HK$1,240,390,000 at the end of 2020, reflecting a decline in overall equity[17] - The company reported a significant increase in contract liabilities, which rose to HK$1,011,846,000 from HK$938,905,000, indicating a growing obligation to deliver goods or services[17] - The company’s goodwill decreased to HK$199,758,000 from HK$220,408,000, suggesting a reduction in the premium paid over the fair value of identifiable assets during acquisitions[15] - The company’s reserves decreased significantly from HK$930,329,000 to HK$742,663,000, indicating a reduction in retained earnings and other reserves[17] - Total assets as of June 30, 2021, were HK$994,883,000, an increase from HK$882,312,000 at the end of June 2020[117] - Total liabilities were HK$1,707,311,000 as of June 30, 2021, down from HK$1,632,285,000 at the end of 2020, indicating an increase of about 4.6%[135] Cash Flow - Net cash used in operating activities for the six months ended June 30, 2021, was HK$52,404,000, a decrease from net cash generated of HK$62,679,000 in 2020[120] - Cash and cash equivalents at the end of the period were HK$7,520,000, down from HK$58,770,000 at the end of June 2020[120] - The company reported a net cash generated from investing activities of HK$28,262,000 for the six months ended June 30, 2021, compared to a net cash used of HK$42,099,000 in 2020[120] - The repayment of borrowings amounted to HK$12,014,000 during the period, with lease liabilities repayment of HK$822,000[120] - The company reported a significant increase in cash flows from the disposal of right-of-use assets, generating HK$35,893,000 in the first half of 2021[120] Strategic Focus - The board is focused on strategic initiatives to improve operational efficiency and explore market expansion opportunities moving forward[8] - The company is engaged in the manufacturing and sale of lithium-ion motive batteries and related equipment, indicating a focus on the new energy sector[124] - The company plans to continue its investment in property development and cultural industry-related businesses, including large-scale event production[124] Shareholder Information - The company’s controlling shareholder is Double Key International Limited, incorporated in the British Virgin Islands[124] - The Company issued Convertible Bonds with a principal amount of HK$300,000,000 at a coupon rate of 3% on 28 February 2017, maturing on 30 June 2036[190] - The Company early redeemed the Convertible Bonds on 26 August 2020, after allotting 150,000,000 conversion shares equivalent to HK$240,000,000[192] - The amount due to the controlling shareholder was approximately HK$382,728,000, with a convertible bond issuance of HK$300,000,000 to replace the loan amount[188] - The interest portion of the payable to the Controlling Shareholder was settled by the end of 2020[191]
天臣控股(01201) - 2021 - 中期财报