Financial Performance - Revenue for the six months ended June 30, 2019, was HKD 98,507,000, representing an increase of 7.3% from HKD 92,006,000 in the same period of 2018[3] - Gross profit for the same period was HKD 50,411,000, up from HKD 47,318,000, reflecting a gross margin improvement[3] - Profit before tax decreased to HKD 22,668,000, down 3.8% from HKD 23,564,000 in 2018[3] - Net profit for the period was HKD 18,899,000, a decrease of 3.8% compared to HKD 19,646,000 in the previous year[3] - Basic and diluted earnings per share were HKD 7.38, down from HKD 7.67 in the same period last year[3] - The printing segment generated revenue of HKD 68,912,000, up from HKD 65,396,000, reflecting a growth of 3.8%[79] - The translation services segment reported revenue of HKD 23,072,000, a 11.5% increase compared to HKD 20,653,000 in 2018[79] - The net profit attributable to the company's owners for the six months ended June 30, 2019, was HKD 18,899,000, down from HKD 19,646,000 in 2018, representing a decrease of 3.8%[100] - Basic earnings per share for the six months ended June 30, 2019, were HKD 7.38, compared to HKD 7.67 for the same period in 2018, indicating a decline of 3.8%[100] - Profit for the period was approximately HKD 18,900,000, a decrease of about 3.6% from HKD 19,600,000 for the same period last year[184] Assets and Liabilities - Total assets as of June 30, 2019, were HKD 276,608,000, compared to HKD 256,335,000 at the end of 2018, showing growth in asset base[6] - The company reported a net cash outflow from operating activities of HKD 9,890,000, compared to an outflow of HKD 2,845,000 in the previous year[21] - Cash and cash equivalents decreased to HKD 12,004,000 from HKD 12,922,000, reflecting a reduction in liquidity[25] - The company’s total equity increased to HKD 225,928,000 from HKD 207,029,000, indicating a strengthening of the financial position[12] - As of June 30, 2019, trade receivables amounted to HKD 52,295,000, an increase from HKD 28,560,000 as of December 31, 2018, representing an 83.2% growth[122] - The company's current lease liabilities due within one year are HKD 18,534,000, while total lease liabilities stand at HKD 36,342,000[115] - The total cash and bank balances, including time deposits, decreased to HKD 189,500,000 from HKD 208,112,000 as of December 31, 2018, reflecting a decline of 8.9%[133] - Trade payables increased to HKD 7,505,000 as of June 30, 2019, compared to HKD 6,003,000 as of December 31, 2018, indicating a 25% rise[135] - The company’s debt-to-asset ratio was 16.1%[185] - The current ratio as of June 30, 2019, was 3.6 times, compared to 4.2 times as of December 31, 2018[188] Employee and Operational Expenses - Total employee benefits expenses increased to HKD 26,316,000 from HKD 22,061,000, marking a rise of 19.5%[87] - Administrative expenses rose by approximately 15.3%, from about HKD 17,600,000 to approximately HKD 20,300,000[181] - The total employee cost for the six months ended June 30, 2019, was approximately HKD 29.4 million, an increase from HKD 25.3 million for the same period in 2018[190] Lease Accounting - The company has adopted new Hong Kong Financial Reporting Standards, including HKFRS 16 on leases, which replaces HKAS 17 and introduces significant changes in accounting for leases[36] - As of January 1, 2019, the company recognized lease liabilities of approximately HKD 45,317,000 and right-of-use assets of approximately HKD 42,443,000[64] - The weighted average incremental borrowing rate used by the company as a lessee was 5.38%[64] - The company applied HKFRS 16 retrospectively, confirming cumulative effects on the initial application date without restating comparative information[58] - The company identified lease liabilities related to operating leases amounting to HKD 48,274,000 as of December 31, 2018, after deducting total future interest expenses of HKD 2,957,000[66] - The company’s right-of-use assets recognized on January 1, 2019, included adjustments related to lease incentives provided by lessors[69] - The company will reassess lease liabilities if there are changes in lease terms or evaluations of purchase options[51] - The company’s lease liabilities are adjusted for interest accruals and lease payments post-initial recognition[51] - The company’s lease modifications are accounted for as a separate lease when they expand the scope of the lease by adding rights to use one or more underlying assets[52] - The company’s assessment of lease terms, including renewal options, significantly impacts the recognized amounts of lease liabilities and right-of-use assets[70] Corporate Information - The company is primarily an investment holding company providing financial printing services, with unaudited consolidated financial statements for the six months ended June 30, 2019, presented in Hong Kong dollars (HKD) [27] - The registered office of the company is located in Grand Cayman, Cayman Islands, with its main operational headquarters in Hong Kong [1] - The company was incorporated in the Cayman Islands on February 5, 2014, and its shares are listed on the main board of the Hong Kong Stock Exchange [1] - The company’s ultimate holding company is a British Virgin Islands registered entity, with the chairman serving as a non-executive director [1] - The financial statements are rounded to the nearest thousand Hong Kong dollars (HKD) [27] - The company did not declare any dividends for the six months ended June 30, 2019, consistent with 2018[94] - The company continues to adopt a prudent approach in making investment decisions amid market fluctuations[195] Other Financial Metrics - The company reported a loss of HKD 1,033,000 recognized in profit or loss during the period[119] - Other income and losses decreased by approximately 36.4%, from about HKD 1,100,000 to approximately HKD 700,000[177] - The company held a total equity investment portfolio valued at approximately HKD 18.5 million as of June 30, 2019, compared to none as of December 31, 2018[195] - The company did not have any significant capital commitments as of June 30, 2019, and December 31, 2018[191] - There were no major contingent liabilities or guarantees as of June 30, 2019, and December 31, 2018[200] - The company issued a total of 256 million shares with a nominal value of HKD 0.01 per share, with no changes in share capital during the period[189] - The company maintained no pledges on its assets as of June 30, 2019, and December 31, 2018[199]
REF HOLDINGS(01631) - 2019 - 中期财报