Financial Performance - The group's revenue for the reporting period was SGD 14.5 million, an increase of 5% compared to SGD 13.8 million in the same period last year[24]. - Gross profit for the reporting period was SGD 4.2 million, a decrease of 19% from SGD 5.2 million in the previous year[24]. - Profit for the period was SGD 0.6 million, down from SGD 2.1 million in the same period last year, primarily due to decreased revenue from search engine marketing services and increased general and administrative expenses[24]. - Other income for the reporting period was SGD 0.38 million, compared to SGD 0.11 million in the previous year[26]. - The total comprehensive income for the period was SGD 0.91 million, down from SGD 2.09 million in the previous year[26]. - Basic and diluted earnings per share for the period were SGD 0.08, compared to SGD 0.25 in the previous year[26]. - The company reported a pre-tax profit of SGD 976,000 for the six months ended December 31, 2020, a decrease of 62% compared to SGD 2,575,000 for the same period in 2019[34]. - The company reported a significant increase in contract liabilities, which rose by SGD 2,023,000 compared to a decrease of SGD 618,000 in the previous year[34]. - The company’s total liabilities increased to SGD 10,831,000 as of December 31, 2020, compared to SGD 3,113,000 as of June 30, 2020, reflecting a substantial rise in financial obligations[117]. Revenue Breakdown - Revenue from search engine marketing services decreased from approximately SGD 10.7 million to approximately SGD 9.0 million, while revenue from creative and technical services dropped from approximately SGD 2.5 million to approximately SGD 1.3 million[24]. - Search engine marketing services generated revenue of SGD 9,008,000, down 16.0% from SGD 10,719,000 in the previous year[42]. - Creative and technical services revenue decreased by 48.3% to SGD 1,280,000 from SGD 2,473,000 year-on-year[42]. - Social media marketing services revenue increased by 35.2% to SGD 840,000 from SGD 621,000 in the previous year[42]. - Technical and platform services generated SGD 2,957,000 in revenue, with no prior year comparison available[42]. Expenses and Costs - General and administrative expenses increased from approximately SGD 2.1 million to approximately SGD 3.1 million[24]. - Total service costs rose from approximately SGD 8.6 million to SGD 10.3 million, including SGD 1.7 million from the acquired MSIL group[150]. - Total administrative expenses were SGD (3,141,000), reflecting the company's operational costs[69]. - Total employee costs increased to 2,451,000 SGD, up 7.7% from 2,275,000 SGD in the previous year[91]. Cash Flow and Investments - Operating cash flow before changes in working capital was SGD 759,000, down from SGD 2,752,000 in the previous year[34]. - The net cash used in investing activities was SGD 10,420,000, compared to SGD 4,819,000 in the previous year, indicating increased investment outflows[34]. - The company acquired property, plant, and equipment at a total cost of approximately 282,000 SGD, a substantial increase from 45,000 SGD in the same period last year[104]. Dividends and Equity - The board has resolved not to declare any interim dividend for the six months ended December 31, 2020[24]. - The company's profit attributable to owners for the six months ended December 31, 2020, was 638,000 SGD, a decrease of 69.6% compared to 2,084,000 SGD for the same period in 2019[95]. - Total equity increased to approximately SGD 28.9 million as of December 31, 2020, from SGD 27.1 million on June 30, 2020, mainly due to the acquisition[162]. Acquisitions and Strategic Moves - The acquisition of Majestic State International Limited (MSIL) contributed revenue of 3.3 million SGD and profit of 1.0 million SGD during the reporting period[99]. - The company completed the acquisition of Majestic State International Limited and its subsidiaries, enhancing its presence in the Chinese e-commerce market[140]. - The company utilized acquisition accounting for the acquisition of MSIL, reflecting its strategic expansion efforts[98]. Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and has complied with all applicable provisions, except for the separation of roles between the chairman and the CEO[186]. - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ended December 31, 2020, and found them to comply with applicable listing rules[192]. - The company has confirmed that all directors adhered to the standard code for securities trading during the reporting period[190]. - The audit committee consists of three independent non-executive directors, fulfilling the requirement for independent oversight[191]. Market Outlook and Future Plans - The company has a strong belief in the long-term demand for its services as Singapore moves towards becoming a Smart Nation, despite the ongoing impact of the COVID-19 pandemic[139]. - The company plans to allocate net proceeds for strengthening technological infrastructure, with an initial amount of approximately HKD 58.2 million already utilized[173]. - The company anticipates the development of Platform A to be completed by Q1 2022 and Platform B by Q2 2023[173].
秀商时代控股(01849) - 2021 - 中期财报