Financial Performance - The company reported a net profit attributable to shareholders of approximately HKD 9,500,000 for the six months ended September 30, 2020, down from approximately HKD 13,500,000 for the same period in 2019[10]. - Revenue from continuing operations increased by approximately HKD 443,100,000 or 737.9% to approximately HKD 503,100,000 for the interim period[11]. - The company recorded a loss before tax of approximately HKD 100,000 during the interim period, compared to a profit of about HKD 18.3 million in the same period last year[27]. - The total comprehensive income attributable to the owners of the company for the interim period was approximately HKD 23.9 million, compared to about HKD 9.4 million in the same period last year[30]. - The company reported a significant increase in other comprehensive income, with a foreign exchange difference of HKD 14,558,000 compared to a loss of HKD 4,085,000 in 2019[91]. - The profit attributable to the company's owners for the six months ended September 30, 2020, was HKD 9,460 million, a decrease of 29.9% compared to HKD 13,494 million in 2019[157]. - The loss from continuing operations attributable to the company's owners for the six months ended September 30, 2020, was HKD 4,557 million, compared to a profit of HKD 14,253 million in 2019[159]. Revenue Breakdown - The concrete business generated revenue of approximately HKD 456,200,000, accounting for 90.7% of total revenue from continuing operations[13]. - Revenue from the home consumables business increased by approximately HKD 700,000 or 2.7% to approximately HKD 25,300,000, primarily due to increased sales of hygiene products in the UK during the COVID-19 pandemic[14]. - Revenue from the education business decreased by approximately HKD 800,000 or 16.7% to approximately HKD 4,000,000, mainly due to a reduction in enrollment for English proficiency tests[14]. - Revenue from the lending business decreased by approximately HKD 13,100,000 or 42.7% to approximately HKD 17,500,000, attributed to a decrease in the average total loan portfolio[16]. - Revenue from external customers for the six months ended September 30, 2020, was HKD 503,062,000, an increase from HKD 60,038,000 for the same period in 2019[119]. - Revenue from the concrete business amounted to HKD 456.2 million, while the home consumables business generated HKD 25.3 million, and the education business contributed HKD 4.0 million[116]. Cost and Expenses - Gross profit from continuing operations increased by approximately HKD 59,800,000 or 152.3% to approximately HKD 99,000,000, driven primarily by the newly acquired concrete business[18]. - Selling and distribution expenses increased significantly by approximately HKD 41.6 million, primarily due to the acquisition of the concrete business completed in January 2020[24]. - Administrative expenses rose by approximately HKD 6.8 million or 25.4% to about HKD 33.7 million, mainly due to the administrative costs associated with the acquired concrete business[25]. - Financing costs increased by approximately HKD 4.6 million or 26.7% to about HKD 21.9 million, largely due to the acquisition of the concrete business and interest expenses from bonds issued[26]. - The total cost of goods sold for the period was HKD 388,030,000, significantly higher than HKD 19,280,000 in the prior year, indicating a substantial increase in operational scale[145]. Assets and Liabilities - As of September 30, 2020, the group's total debt was approximately HKD 291.9 million, down from HKD 318.1 million as of March 31, 2020, representing a decrease of about 8.5%[35]. - The group's cash and cash equivalents increased to approximately HKD 42.3 million as of September 30, 2020, compared to HKD 18.2 million as of March 31, 2020, marking an increase of approximately 132.5%[35]. - The current ratio improved to 1.9 as of September 30, 2020, up from 1.8 as of March 31, 2020[35]. - The total liabilities decreased slightly to HKD 580,629,000 from HKD 582,006,000, showing stable financial management[93]. - The company's equity increased to HKD 777,128,000 from HKD 734,554,000, reflecting growth in shareholder value[93]. Business Operations and Strategy - The concrete business was acquired in January 2020, contributing significantly to the company's revenue during the interim period[13]. - The company plans to explore potential investments and business opportunities in the construction-related concrete sales and production sector to support long-term development[63]. - The company believes that the concrete business will help reverse losses experienced in previous years due to stable supply and demand dynamics[64]. - The company aims to reallocate resources from discontinued operations to enhance growth in other business segments, focusing on maximizing shareholder interests[149]. Employee and Shareholder Information - The company employed a total of 271 employees as of September 30, 2020, compared to 67 employees a year earlier, with employee costs amounting to approximately HKD 25,600,000[62]. - The company did not declare an interim dividend for the period ending September 30, 2020[86]. - The group did not recommend an interim dividend for the period, consistent with the previous year[147]. Discontinued Operations - The company completed the sale of its digital technology business for a total consideration of HKD 30 million, which was classified as a discontinued operation[31]. - The group completed the sale of its digital technology business on July 27, 2020, and the coal business on September 1, 2020, classifying these as discontinued operations[112][113]. - The group recorded a loss before tax from discontinued operations of HKD 253,000 for the six months ended September 30, 2020, compared to a loss of HKD 763,000 for the same period in 2019[153]. Impairment and Goodwill - The impairment loss for the cash-generating unit related to the education business was approximately HKD 13,169,000, reflecting increased competition and changes in customer demand[185]. - An impairment loss of approximately HKD 8,235,000 was recognized for the digital technology cash-generating unit due to the consideration being lower than the net asset value[187]. - The goodwill related to the concrete business and home consumables is part of the company's strategic acquisitions aimed at market expansion[173]. Cash Flow and Financing - The company reported a net cash inflow from operating activities of HKD 72,163,000 for the six months ended September 30, 2020, compared to a net outflow of HKD 5,737,000 in the same period last year[98]. - The company’s financing activities resulted in a cash outflow of HKD 41,474,000 for the six months ended September 30, 2020, compared to HKD 9,328,000 in the same period last year[98]. - The company’s net cash used in investing activities was HKD 11,929,000 for the six months ended September 30, 2020, compared to HKD 14,875,000 in the previous year[98].
华盛国际控股(01323) - 2021 - 中期财报