Revenue Performance - Total revenue for the six months ended December 31, 2020, was approximately HK$137.29 million, a decrease of 67.80% from HK$426.59 million in the prior period[11]. - Revenue from the exhibition and events segment decreased by 100% to nil, representing 0% of total revenue compared to 10.77% in the prior period[13][17]. - Revenue from the cultural and entertainment segment decreased by approximately HK$235.08 million, or 67.85%, from approximately HK$346.46 million in the prior period to approximately HK$111.38 million[19][20]. - Financing segment revenue was approximately HK$25.91 million, down from HK$34.20 million, reflecting a decrease of 24.80%[11]. - The cultural and entertainment business accounted for 81.13% of total revenue, slightly down from 81.22% in the prior period[19][20]. - The overall performance of the cultural and entertainment business was weak, impacted by government-imposed epidemic prevention measures and social distancing policies[15]. - Revenue from money lending decreased by approximately HK$1.00 million, or approximately 71.43%, from HK$1.40 million to HK$0.40 million[28]. - Revenue from finance leasing decreased by approximately HK$7.50 million, or approximately 61.98%, from HK$12.10 million to HK$4.60 million[35]. - Credit factoring revenue increased by approximately HK$0.22 million, or approximately 1.06%, from HK$20.70 million to HK$20.92 million[36]. - Total revenue from external customers decreased to HK$137,288,000 in 2020 from HK$426,591,000 in 2019, representing a decline of approximately 67.8%[153]. Profitability - Operating profit for the Reporting Period was approximately HK$38.04 million, representing a decrease of approximately 78.86% from HK$179.93 million in the Prior Period[42]. - Net profit for the Reporting Period was approximately HK$13.16 million, down approximately 87.66% from HK$106.61 million in the Prior Period, primarily due to the adverse impact of COVID-19[42]. - The operating profit margin decreased from 42% in the Prior Period to 28% in the Reporting Period[45]. - The Group's operating profit decreased by approximately HK$141.89 million, or approximately 78.86%, from approximately HK$179.93 million in the prior period to approximately HK$38.04 million in the reporting period[52]. - Profit before tax decreased to HK$24,375,000 in 2020 from HK$161,049,000 in 2019, reflecting a decline of approximately 84.8%[156]. - The company reported a profit for the period of HK$13,164,000 in 2020, down from HK$106,611,000 in 2019, a decline of approximately 87.6%[156]. - Basic earnings per share attributable to owners of the Company decreased to 1.02 HK cents, down from 6.92 HK cents in 2019[123]. Financial Position - As of December 31, 2020, the Group's total current assets were approximately HK$610.84 million, down from approximately HK$692.42 million as of June 30, 2020[67]. - The current liabilities as of December 31, 2020, were approximately HK$224.25 million, a decrease from approximately HK$447.97 million as of June 30, 2020[67]. - The current ratio improved to about 2.72 times as of December 31, 2020, compared to about 1.55 times as of June 30, 2020[67]. - The gearing ratio decreased to 16.80% as of December 31, 2020, from 26.98% as of June 30, 2020[68]. - The Group's borrowings were approximately HK$171.53 million as of December 31, 2020, down from approximately HK$312.27 million as of June 30, 2020[75]. - Cash and cash equivalents increased to approximately HK$154.46 million as of December 31, 2020, compared to approximately HK$137.43 million as of June 30, 2020[68]. - The company's total equity attributable to owners increased to HK$791,639,000 from HK$692,481,000, reflecting a growth of 14.3%[128]. Operational Challenges - The exhibition industry faced significant operational difficulties due to COVID-19, leading to a complete halt in exhibitions during the reporting period[12]. - The company anticipates continued revenue decline from the exhibition and events segment in the coming years[12]. - The Group anticipates a challenging business environment in the short to medium term, particularly in the exhibition and events industry due to the ongoing impacts of COVID-19[54]. - The economic impact of COVID-19 is expected to take a long time to overcome, affecting the Group's business strategies[53]. - The Group is closely monitoring the development of COVID-19 and is taking reasonable measures to mitigate its effects on operations[55]. Employee and Corporate Governance - The Group had a total of 102 full-time employees, down from 154 as of June 30, 2020[83]. - The remuneration packages for employees include salaries, discretionary bonuses, and commissions, structured according to market conditions and individual performance[83]. - The remuneration committee will review and recommend compensation packages for Directors and senior management based on comparable companies and their responsibilities[84]. - The company has complied with all applicable Code Provisions as set out in the Corporate Governance Code during the reporting period[112]. - The Board regularly reviews corporate governance practices and has applied the principles of the Corporate Governance Code[111]. Share Capital and Dividends - The Company did not recommend the payment of an interim dividend for the reporting period, consistent with the previous year[58]. - The company declared dividends of HK$73,145,000 for the previous year, impacting retained earnings[128]. - A total of 292,500,000 ordinary shares were issued at HK$0.13 per share during the reporting period[80]. - The total outstanding share options as of December 31, 2020, amounted to 41,260,000[109]. - The vesting of share options is conditional upon fulfilling certain performance targets, with various exercisable periods until May 31, 2028[110]. Segment Performance - The Group's main business segments include exhibition and events organization, cultural and entertainment services, and financing services[150][151]. - The Group's financing segment provides money lending, finance leasing, and credit factoring services, contributing to its diversified revenue streams[151]. - Segment results for the exhibition and events segment showed a loss of HK$3,353,000 in 2020 compared to a profit of HK$15,529,000 in 2019, indicating a significant downturn[156]. - The Group's cultural and entertainment services platform includes brand management, consulting services, and artist agency services, enhancing its market presence[151]. - Revenue from exhibition organization and sponsorship was HK$0, down from HK$45,934,000 in 2019, indicating a complete cessation of this revenue stream[161].
诺发集团(01360) - 2021 - 中期财报