Financial Performance - The group's revenue for the six months ended September 30, 2020, was approximately HKD 387.9 million, a decrease of 34.4% compared to approximately HKD 591.2 million for the corresponding period in 2019[45]. - Gross profit for the same period was approximately HKD 26.9 million, representing a decrease of 8.6% from the previous year's HKD 29.4 million[40]. - Net profit for the period was approximately HKD 12.9 million, a slight increase of 0.2% compared to HKD 12.8 million in the corresponding period of 2019[40]. - Revenue for the six months ended September 30, 2020, was HKD 387,920 thousand, a decrease of 34.3% compared to HKD 591,209 thousand for the same period in 2019[114]. - Gross profit for the same period was HKD 26,861 thousand, down 8.7% from HKD 29,403 thousand year-on-year[114]. - The company reported a profit before tax of HKD 15,029 thousand, slightly down by 2.5% from HKD 15,416 thousand in the previous year[114]. - Total comprehensive income for the period was HKD 12,870 thousand, a marginal increase from HKD 12,847 thousand in the prior year[114]. - Basic earnings per share for the period was HKD 1.29, compared to HKD 1.28 in the same period last year[114]. Sales and Revenue Breakdown - Diesel sales generated revenue of approximately HKD 350,900,000 and HKD 542,500,000, accounting for 90.5% and 91.8% of total revenue respectively, with a volume decrease of 42.5% from approximately 130,200,000 liters to about 74,800,000 liters[47]. - Lubricant sales revenue was approximately HKD 23,500,000 and HKD 30,600,000, representing 6.1% and 5.2% of total revenue, with a volume decline of 7.1% from about 1,400,000 liters to approximately 1,300,000 liters[48]. - Revenue from fleet card services decreased by HKD 3,600,000 or 23.5% to approximately HKD 11,700,000 due to local economic activity reduction caused by lockdowns and travel restrictions[49]. - Diesel sales contributed HKD 350,947,000, down 35.3% from HKD 542,574,000 year-on-year[154]. - Fleet card service revenue was HKD 11,733,000, a decline of 23.5% compared to HKD 15,336,000 in the previous year[154]. - Lubricant sales amounted to HKD 23,512,000, decreasing by 23.1% from HKD 30,562,000 in the prior period[154]. - Other product sales were HKD 1,728,000, down 37.0% from HKD 2,737,000 year-on-year[154]. Market Conditions and Strategic Moves - The ongoing COVID-19 pandemic has significantly impacted the Hong Kong economy, leading to a reduction in demand for petrochemical products[41]. - The company remains optimistic about the petrochemical market outlook, anticipating improvements in local economic activities related to logistics, retail, and transportation as global vaccination progresses[43]. - In April 2020, the company entered into a contract with an oil company to sell and distribute its branded lubricants, indicating a strategic move to expand its product offerings[44]. - The company is actively exploring potential markets, particularly in Vietnam, to expand its sales reach across Asia[44]. - The group acknowledges the competitive nature of the Hong Kong petrochemical market and is focused on identifying potential business opportunities[44]. Financial Position and Assets - The group recorded net current assets of approximately HKD 79,400,000 as of September 30, 2020, down from approximately HKD 90,900,000 as of March 31, 2020[68]. - As of September 30, 2020, the group's current assets were approximately HKD 129.9 million, a slight decrease from HKD 130.3 million as of March 31, 2020[69]. - Current liabilities increased to approximately HKD 50.5 million from HKD 39.4 million as of March 31, 2020, with bank borrowings rising to HKD 37.4 million from HKD 30.1 million[69]. - The current ratio decreased to 2.57 as of September 30, 2020, down from 3.31 as of March 31, 2020[69]. - The debt-to-equity ratio increased to 20.9% as of September 30, 2020, compared to 18.5% as of March 31, 2020[69]. - Non-current assets as of September 30, 2020, totaled HKD 111,259 thousand, an increase from HKD 87,642 thousand as of March 31, 2020[116]. - The company’s total liabilities increased to HKD 50,523 thousand from HKD 39,362 thousand, reflecting a rise in bank borrowings[116]. - Cash and cash equivalents decreased to HKD 62,632 thousand from HKD 66,101 thousand at the end of the previous reporting period[138]. Corporate Governance and Shareholder Information - The company adhered to all corporate governance codes during the period[77]. - Major shareholder Jun Long holds 730,000,000 shares, representing approximately 73% of the company's issued share capital[92]. - Jun Long is owned by Mr. Xu, Ms. Tang, and Mr. Xu Yehao, holding 35%, 35%, and 30% respectively[93]. - The audit committee consists of three independent non-executive directors, ensuring compliance with listing rules and corporate governance standards[97]. - The audit committee has reviewed the accounting principles and financial reporting matters of the group without dissent[97]. - The company has a share option plan adopted on January 16, 2018, to incentivize eligible participants[100]. - The maximum number of shares that can be issued under the share option scheme is capped at 10% of the total issued shares as of the listing date, which amounts to 100,000,000 shares[105]. - No share options have been granted or remain unexercised since the adoption of the share option scheme[105]. Other Financial Metrics - Financing costs increased by approximately HKD 53,000 or 13.9% to HKD 434,000 due to increased bank borrowings[58]. - Income tax expenses decreased by approximately HKD 410,000 or 16.0% to about HKD 2,200,000, primarily due to a reduction in pre-tax profits[59]. - The group reported a segment profit of HKD 28,699,000 for the six months ended September 30, 2020, compared to HKD 27,961,000 for the same period in 2019, reflecting a slight increase of 2.6%[158]. - Other income for the period was HKD 2,385,000, significantly higher than HKD 442,000 in the previous year, driven by government subsidies and interest income[169]. - The company received government subsidies totaling HKD 1,421,000 related to the employment support scheme during the COVID-19 pandemic[169].
域高国际控股(01621) - 2021 - 中期财报