Revenue and Profitability - Revenue for the six months ended June 30, 2021, was HKD 77,190,000, a decrease of 7% compared to HKD 83,253,000 for the same period in 2020[3] - Profit attributable to owners of the company for the period was HKD 7,772,000, down 27% from HKD 10,601,000 in the prior year[3] - The company reported a pre-tax profit of HKD 9,891,000, a decrease of 24% compared to HKD 12,987,000 in the same period last year[3] - The company reported a profit attributable to shareholders of HKD 7,772,000 for the six months ended June 30, 2021, a decrease of 26.0% compared to HKD 10,601,000 in the same period of 2020[77] - Basic earnings per share for the six months ended June 30, 2021, was HKD 3.04, down from HKD 4.14 in the same period of 2020, reflecting a decline of 26.6%[81] - Net profit for the period was approximately HKD 7,800,000, a decrease of about HKD 2,800,000 or 26.4% from the previous period's HKD 10,600,000, mainly due to one-time office relocation expenses and competitive market conditions[168] Assets and Liabilities - Total assets as of June 30, 2021, were HKD 169,970,000, down from HKD 208,806,000 at the end of 2020[19] - Current assets decreased to HKD 108,419,000 from HKD 191,036,000 in the previous year[19] - The company’s total equity attributable to owners decreased to HKD 138,605,000 from HKD 207,633,000 in the previous year[23] - The company’s lease liabilities increased to HKD 47,050,000 as of June 30, 2021, compared to HKD 10,474,000 in the previous year, indicating an expansion in leasing commitments[94] - The company's debt-to-asset ratio increased to 0.34 as of June 30, 2021, from 0.05 as of December 31, 2020, due to an increase in lease liabilities[170] - The group did not hold any significant investments as of June 30, 2021, and had no major contingent liabilities or guarantees[187][191] Cash Flow and Financing - The company’s cash and cash equivalents were HKD 107,775,000, a significant decrease from HKD 186,487,000 at the end of 2020[17] - Operating cash flow before tax profit was HKD 8,970,000, down from HKD 16,512,000 in the previous year[32] - The net cash flow from investing activities was a net outflow of HKD 982,000, compared to an inflow of HKD 59,952,000 in the previous period[35] - The net cash used in financing activities amounted to HKD 86,670,000, compared to HKD 10,070,000 in the prior period[35] - Cash and cash equivalents decreased by HKD 78,712,000, ending the period at HKD 107,775,000, down from HKD 186,487,000 at the beginning of the period[35] Revenue Breakdown - Revenue from financial printing services for the six months ended June 30, 2021, was HKD 77,190,000, a decrease of 7.5% from HKD 83,253,000 in the same period last year[48] - Printing services generated revenue of approximately HKD 51.7 million, accounting for about 67.0% of total revenue, compared to HKD 55.0 million and 66.0% in the prior period[148] - Translation service revenue for the period was approximately HKD 20,400,000, a decrease of about 5.6% from the previous period's HKD 21,600,000, primarily due to clients' cost-saving measures[149] - Media release revenue for the period was approximately HKD 5,100,000, down 23.9% from approximately HKD 6,700,000 in the previous period, attributed to reduced demand during the Covid-19 pandemic[156] Operational Performance and Strategy - The company plans to focus on new product development and market expansion strategies in the upcoming periods[4] - The overall performance for the first half of 2021 showed significant recovery compared to the second half of 2020, although it remained slightly below the first half of 2020[142] - The company aims to provide a unique experience for clients through a comprehensive range of financial printing services, including design, translation, and media release[142] - The company has implemented business continuity measures to ensure uninterrupted service delivery to clients during the pandemic[142] - The outlook for the group's operational performance remains uncertain, with challenges anticipated due to the spread of more transmissible COVID-19 variants[195] Employee and Expenses - The total employee benefit expenses for the period were HKD 26,035,000, slightly down from HKD 26,067,000 in the same period of 2020[74] - The company's service costs decreased by approximately HKD 8,500,000 or 19.6% to about HKD 34,800,000, primarily due to cost savings from acquiring a translation service company[160] Investments and Future Plans - The group has no specific plans for significant investments or capital assets as of June 30, 2021[192] - Recent amendments to Hong Kong listing rules may impact the group's future performance, including the implementation of paperless IPO processes starting July 2021[195] - The group plans to leverage its competitive advantages in branding and network to expand its customer base and enhance professional services[195]
REF HOLDINGS(01631) - 2021 - 中期财报