美捷汇控股(01389) - 2021 - 中期财报

Financial Highlights Financial Highlights For the six months ended September 30, 2020, the Group recorded a loss after tax of approximately HKD 5.4 million, significantly narrowed from HKD 11.7 million in the same period last year, with basic loss per share at 0.16 HK cents, and the Board does not recommend an interim dividend 2020 Interim Financial Performance Overview | Metric | For the Six Months Ended September 30, 2020 | For the Six Months Ended September 30, 2019 | | :--- | :--- | :--- | | Loss After Tax | Approx. HKD 5.4 million | Approx. HKD 11.7 million | | Basic Loss Per Share | 0.16 HK cents | 0.41 HK cents | - The Board does not recommend the payment of an interim dividend for the six months ended September 30, 2020[4] Condensed Consolidated Financial Statements Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income During the reporting period, Group revenue decreased by 44.4% year-on-year to HKD 38.0 million, and gross profit decreased by 38.8% to HKD 5.9 million; however, significant reductions in promotion, selling, and administrative expenses narrowed operating loss from HKD 11.1 million to HKD 4.6 million, and loss for the period from HKD 11.7 million to HKD 5.4 million Key Income Statement Data | Metric | For the Six Months Ended September 30, 2020 (HKD '000) | For the Six Months Ended September 30, 2019 (HKD '000) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 37,983 | 68,341 | -44.4% | | Gross Profit | 5,916 | 9,671 | -38.8% | | Operating Loss | (4,578) | (11,081) | Loss narrowed by 58.7% | | Loss for the Period | (5,412) | (11,738) | Loss narrowed by 53.9% | | Basic Loss Per Share | (0.16 HK cents) | (0.41 HK cents) | - | Condensed Consolidated Statement of Financial Position As of September 30, 2020, the Group's total assets were approximately HKD 193 million and net assets approximately HKD 135 million, a slight decrease from March 31, 2020, with current assets maintained at HKD 173 million and net current assets at HKD 118 million, indicating robust short-term solvency Key Statement of Financial Position Data | Metric | September 30, 2020 (HKD '000) | March 31, 2020 (HKD '000) | | :--- | :--- | :--- | | Non-current Assets | 20,049 | 23,920 | | Current Assets | 172,735 | 173,283 | | Current Liabilities | 55,107 | 52,459 | | Net Current Assets | 117,628 | 120,824 | | Net Assets | 134,744 | 140,156 | Condensed Consolidated Statement of Changes in Equity As of September 30, 2020, total equity attributable to owners of the Company was HKD 134.7 million, a decrease of HKD 5.4 million from HKD 140.2 million at the beginning of the period, primarily due to the loss recorded during the period - As of September 30, 2020, total equity was HKD 134,744 thousand, a decrease of HKD 5,412 thousand from HKD 140,156 thousand as of April 1, 2020, primarily due to the loss for the period[8] Condensed Consolidated Statement of Cash Flows During the reporting period, the Group's cash flow from operating activities significantly improved from a net outflow of HKD 9.2 million in the prior period to a net inflow of HKD 14.5 million, with cash and cash equivalents increasing to HKD 13.6 million at period-end Key Cash Flow Statement Data | Metric | For the Six Months Ended September 30, 2020 (HKD '000) | For the Six Months Ended September 30, 2019 (HKD '000) | | :--- | :--- | :--- | | Net Cash Generated From / (Used In) Operating Activities | 14,487 | (9,165) | | Net Cash Used In Investing Activities | (356) | (577) | | Net Cash (Used In) / Generated From Financing Activities | (6,289) | 2,557 | | Net Increase / (Decrease) in Cash and Cash Equivalents | 7,842 | (7,185) | | Cash and Cash Equivalents at End of Period | 13,559 | 1,692 | Notes to the Condensed Consolidated Financial Statements The financial statement notes indicate the Group operates a single business segment, selling wine and spirits products in Hong Kong, with revenue primarily from red wine sales, which saw a significant year-on-year decline, and all revenue and major assets are located in Hong Kong, with no interim dividend recommended by the Board - The Group is principally engaged in the sale and distribution of quality wine and spirits products and wine accessories in Hong Kong, operating only a single operating segment[12][15] Revenue Analysis by Product Category | Product Category | For the Six Months Ended September 30, 2020 (HKD '000) | For the Six Months Ended September 30, 2019 (HKD '000) | | :--- | :--- | :--- | | Red Wine | 33,314 | 62,188 | | White Wine | – | 1,403 | | Sparkling Wine | – | 1,294 | | Spirits | 4,501 | 2,664 | | Others | 168 | 792 | - The Board does not recommend the payment of an interim dividend for the six months ended September 30, 2020[23] Management Discussion and Analysis Business Review and Outlook Affected by the COVID-19 pandemic and the persistently weak Hong Kong retail market, the Group faced a highly challenging business environment, with revenue decreasing by 44.4% year-on-year during the reporting period, primarily due to a significant reduction in red wine sales; looking ahead, the Group remains confident in the long-term demand in Hong Kong and China markets and will actively adjust strategies and seek diversification opportunities - The overall business environment remained highly unstable and challenging, impacted by factors such as the COVID-19 pandemic, US-China trade disputes, and a weak Hong Kong retail market[33][34] - Group revenue decreased by 44.4% to approximately HKD 38.0 million, primarily due to red wine sales decreasing from HKD 62.2 million in the prior period to HKD 33.3 million[33] - Future strategies include adjusting sales and marketing approaches and actively seeking new business opportunities to diversify operations and enhance long-term growth potential[34] Financial Review The core characteristic of financial performance during this period was declining revenue but narrowing losses, with revenue and gross profit decreasing by 44.4% and 39.2% respectively due to deteriorating market conditions; however, successful cost control, including a combined reduction of approximately HKD 6.7 million in promotion, selling, distribution, and administrative expenses, significantly narrowed the loss for the period from HKD 11.7 million to HKD 5.4 million - Revenue decreased by 44.4% from HKD 68.3 million to HKD 38.0 million; gross profit decreased by 39.2% from HKD 9.7 million to HKD 5.9 million[36][37] - Promotion, selling, and distribution expenses decreased by 22.9% to HKD 7.4 million; administrative expenses decreased by 44.6% to HKD 5.1 million, primarily due to reduced staff salaries and directors' emoluments[38] - Benefiting from cost control, the loss for the period attributable to owners of the Company narrowed from HKD 11.7 million in the prior period to HKD 5.4 million[42] Liquidity, Financial Resources and Capital Structure The Group's financial position remained robust, with a current ratio of 3.13 times and a gearing ratio (total borrowings/equity) decreasing to 25.6% as of September 30, 2020, and approximately HKD 19.6 million in bank and cash balances (including pledged deposits), indicating ample liquidity to meet operational needs Liquidity and Capital Structure Indicators | Metric | September 30, 2020 | March 31, 2020 | | :--- | :--- | :--- | | Current Ratio | 3.13 | 3.30 | | Gearing Ratio | 25.6% | 28.7% | | Bank and Cash Balances (including pledged) | Approx. HKD 19.6 million | Approx. HKD 11.8 million | - As of September 30, 2020, the Group pledged approximately HKD 6.1 million of bank balances as security for banking facilities[46] Other Disclosures During the reporting period, the Group's total number of employees slightly decreased, with staff costs significantly reduced by 58.7% year-on-year to HKD 3.3 million; the company did not undertake any significant acquisitions, disposals, or share repurchases, and director and substantial shareholder interests were disclosed as required, with compliance to corporate governance codes - As of September 30, 2020, the Group had 34 employees, with staff costs (including directors' emoluments) of approximately HKD 3.3 million, a significant decrease from HKD 8.0 million in the prior period[49] - During the reporting period, the Group did not undertake any significant acquisitions or disposals of subsidiaries, nor did it purchase, sell, or redeem any of the Company's securities[50][57] - No share options were granted under the share option scheme for the six months ended September 30, 2020[56] - The Audit Committee has reviewed the Group's unaudited consolidated results for the six months ended September 30, 2020[67]