Financial Performance - Total revenue for the period was HK$67,140,000, a decrease of 3% from HK$69,822,000 in the previous period[15] - Gross profit decreased to HK$7,423,000, down 40% from HK$12,466,000 year-on-year[15] - Loss before tax was HK$6,128,000 compared to a profit of HK$504,000 in the same period last year[15] - Loss for the period amounted to HK$6,128,000, compared to a profit of HK$271,000 in the previous year[15] - Other income decreased to HK$1,173,000, down 60% from HK$2,903,000 year-on-year[15] - Total comprehensive loss for the period was HK$6,046,000, compared to a comprehensive income of HK$195,000 in the previous year[15] - Basic loss per share was HK$0.7 cents, compared to earnings of HK$0.02 cents per share in the previous period[15] - The company reported a net loss of HK$6,128,000 for the period ended September 30, 2019, compared to a profit of HK$271,000 for the same period in 2018[22] - The Group reported a condensed consolidated loss before tax of HK$6,128,000 for the six months ended September 30, 2019[113] Assets and Liabilities - Non-current assets increased to HK$250,001,000 as of September 30, 2019, up from HK$224,138,000 as of March 31, 2019, representing an increase of approximately 11.5%[17] - Current assets decreased to HK$98,798,000 as of September 30, 2019, down from HK$107,918,000 as of March 31, 2019, a decline of about 8.3%[17] - Total liabilities increased to HK$80,389,000 as of September 30, 2019, compared to HK$64,587,000 as of March 31, 2019, an increase of about 24.4%[17] - The company’s total equity decreased to HK$234,499,000 as of September 30, 2019, down from HK$240,545,000 as of March 31, 2019, a decline of approximately 2.5%[20] - Cash and cash equivalents at the end of the period were HK$45,960,000, down from HK$56,207,000 at the end of the same period in 2018, a decrease of approximately 18.2%[28] - Trade and other payables increased to HK$52,566,000 as of September 30, 2019, from HK$45,391,000 as of March 31, 2019, an increase of about 15.3%[17] Cash Flow - Net cash from operating activities for the six months ended September 30, 2019, was HK$14,010,000, compared to HK$35,216,000 for the same period in 2018, a decrease of approximately 60.2%[28] - The company’s net cash used in investing activities was HK$25,024,000 for the six months ended September 30, 2019, compared to HK$27,072,000 for the same period in 2018, a decrease of about 7.6%[28] Accounting Policies and Standards - The Group's interim financial information for the six months ended 30 September 2019 has been prepared in accordance with HKFRS and Listing Rules[32] - The Group has applied HKFRS 16 for the first time, which supersedes HKAS 17 Leases, impacting the accounting policies[46] - The application of new HKFRSs includes changes in accounting policies related to leases and income tax treatments, which may affect reported amounts[41] - The Group's accounting policies for the interim period are consistent with those used in the preparation of the annual consolidated financial statements[33] - The Group's financial results for the six months ended September 30, 2019, reflect significant changes in accounting policies due to the application of HKFRS 16, impacting lease liabilities and right-of-use assets[49] Lease Accounting - Right-of-use assets are measured at cost, which includes the initial measurement of lease liabilities and any lease payments made before the commencement date, adjusted for any incentives received[51] - Lease liabilities are recognized at the present value of unpaid lease payments at the commencement date, using the incremental borrowing rate if the implicit interest rate is not determinable[54] - The Group applies the short-term lease recognition exemption for leases with a term of 12 months or less, recognizing lease payments as expenses on a straight-line basis[51] - The Group's accounting policies ensure that right-of-use assets are depreciated over the shorter of their estimated useful life or the lease term, unless ownership is reasonably certain at the end of the lease[51] - The Group's financial position reflects the impact of these accounting changes, presenting right-of-use assets as a separate line item on the consolidated statement of financial position[51] Business Combinations - Business combinations are accounted for using the acquisition method, with the consideration measured at fair value, including the fair values of assets transferred and liabilities incurred[84] - Goodwill is measured as the excess of the consideration transferred over the net amount of identifiable assets acquired and liabilities assumed at the acquisition date[89] - The Group's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date, with any resulting gain or loss recognized in profit or loss or other comprehensive income[94] - The Group's interim report indicates that the accounting for business combinations may involve provisional amounts subject to adjustments based on new information[99] Revenue Breakdown - The Group's total revenue for the six months ended September 30, 2019, was HK$67,140,000, with segment revenue from external customers amounting to HK$58,118,000 from leasing and HK$9,022,000 from trading[113] - The leasing of machinery generated revenue of HK$50,674,000, while sales of machinery and parts contributed HK$8,975,000[110] - The Group's geographical revenue breakdown shows HK$52,940,000 from Hong Kong and HK$4,404,000 from Macau[110] - The Group's revenue recognition timing indicates HK$8,975,000 was recognized at a point in time, while HK$7,411,000 was recognized over time[110] Staff and Expenses - For the six months ended September 30, 2019, the total staff costs amounted to HK$18,925,000, a decrease of 13.4% compared to HK$21,761,000 in the same period of 2018[145] - Administrative, selling and distribution expenses were HK$17,382,000, slightly down from HK$17,691,000 in the previous period[15] - The Group's unallocated expenses totaled HK$14,450,000, impacting overall profitability[113] Other Financial Information - The company recognized a gain on disposal of property, plant, and equipment amounting to HK$3,293,000 for the six months ended September 30, 2019, compared to HK$3,008,000 in 2018, reflecting an increase of 9.5%[131] - The depreciation of property, plant, and equipment for the period was HK$27,144,000, an increase from HK$24,091,000 in the previous year, representing a rise of 12.5%[125] - The company did not incur any current tax for Hong Kong Profits Tax for the six months ended September 30, 2019, consistent with the previous year[140] Acquisition Details - On September 20, 2019, the company acquired a 100% interest in AP Rentals (Shanghai) Limited for a consideration of HK$18.3 million[199] - The acquisition of AP Rentals (Shanghai) Limited is expected to enhance the company's presence in the construction equipment rental services market in China[200]
亚积邦租赁(01496) - 2020 - 中期财报