Financial Performance - For the six months ended September 30, 2020, the company reported revenue of HKD 281,123,000, a decrease of 15.1% compared to HKD 331,230,000 for the same period in 2019[12]. - Gross profit for the same period was HKD 46,470,000, down 13.9% from HKD 54,073,000 in 2019[12]. - The company recorded a profit before tax of HKD 18,167,000, a decline of 30.2% from HKD 26,021,000 in the previous year[12]. - Net profit for the period was HKD 14,065,000, representing a decrease of 42.5% compared to HKD 24,360,000 in 2019[12]. - Basic earnings per share were HKD 0.18, down from HKD 0.44 in the same period last year[12]. - Total comprehensive income for the period was HKD 22,273,000, an increase from HKD 14,425,000 in 2019[15]. - The company reported a profit of HKD 21,076 thousand for the year, with a significant contribution from fair value changes in financial assets[31]. - The company reported a profit attributable to equity shareholders of approximately HKD 11.0 million for the six months ended September 30, 2020, down from HKD 21.1 million for the same period in 2019, representing a decrease of about 48.0%[149]. Revenue Breakdown - Revenue from the IT application and solution development segment increased to HKD 36,124,000, up from HKD 23,322,000, reflecting a growth of 55%[54]. - The IT infrastructure solution segment generated revenue of HKD 163,026,000, down from HKD 224,007,000, indicating a decline of 27.3%[54]. - Maintenance and support services revenue rose to HKD 69,512,000, compared to HKD 58,429,000, marking an increase of 18.1%[54]. - Revenue from the secondment services segment decreased significantly by approximately 51.1% to HKD 12.5 million, accounting for about 4.4% of total revenue[152]. Cash Flow and Liquidity - For the six months ended September 30, 2020, the operating cash flow was HKD 26,070 thousand, a significant improvement from the cash used in operations of HKD (13,348) thousand in the same period of 2019[35]. - The net cash generated from investing activities was HKD 1,199 thousand, compared to cash used of HKD (315) thousand in the previous year[35]. - The net cash generated from financing activities was HKD 19,143 thousand, a recovery from cash used of HKD (13,944) thousand in the prior year[35]. - As of September 30, 2020, the group's total current assets were approximately HKD 302.9 million, an increase from HKD 252.5 million as of March 31, 2020, with cash and cash equivalents amounting to approximately HKD 91.8 million[168]. - The group's liquidity ratio as of September 30, 2020, was approximately 2.7 times, compared to 2.5 times as of March 31, 2020[169]. Assets and Liabilities - The company's total assets less current liabilities increased to HKD 550,843,000 as of September 30, 2020, compared to HKD 471,656,000 as of March 31, 2020[21]. - Non-current assets as of September 30, 2020, totaled HKD 353,492,000, an increase from HKD 313,898,000 as of March 31, 2020, representing a growth of about 12.6%[67]. - The fair value of other financial assets as of September 30, 2020, was HKD 8,300,000, an increase from HKD 6,900,000 as of March 31, 2020[50]. - The company reported trade payables of HKD 72,261,000 as of September 30, 2020, an increase from HKD 63,941,000 as of March 31, 2020[107]. Employee and Management Costs - Employee costs, including directors' remuneration, decreased to HKD 53,367,000 for the six months ended September 30, 2020, from HKD 65,278,000 in the same period of 2019, a reduction of approximately 18.2%[71]. - The company reported a total management compensation of HKD 6,243,000 for the six months ended September 30, 2020, a decrease of 38% compared to HKD 10,126,000 in the same period of 2019[128]. Corporate Governance - The company adopted and complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules, with deviations noted in sections A.2.1 and A.6.7[194]. - The board will continue to review corporate governance practices to enhance standards and meet increasing stakeholder expectations[195]. - The company is considering the feasibility of appointing a suitable candidate for the CEO position to comply with the corporate governance code[195]. Acquisitions and Investments - The company completed the acquisition of subsidiaries for a total consideration of 145 million Malaysian Ringgit, focusing on property development and an online-to-offline wholesale trading platform[104]. - The total consideration for the acquisition of PS International Company Limited was HKD 18,000,000, increasing the company's equity interest from 40% to 70%[131]. - The fair value of identifiable assets and liabilities acquired from the software technology group was assessed at HKD 34,379,000, with goodwill generated amounting to HKD 38,137,000[138]. Risks and Future Outlook - The company continues to face various risks and uncertainties, including the ongoing COVID-19 pandemic and escalating US-China tensions, which may adversely affect its business and financial condition[155]. - The management team will closely monitor operational and financial performance and explore opportunities to enhance financial performance and maintain sustainable growth amid a challenging market environment[155]. - The company is closely monitoring the impact of the COVID-19 pandemic on its operations and financial condition, implementing contingency measures as necessary[143].
扬科集团(01460) - 2021 - 中期财报