Financial Performance - The Group recorded revenue of approximately HK$137.2 million for the six months ended 30 September 2020, representing a decrease of 21.0% compared to HK$173.8 million for the same period in 2019[29]. - The company reported a loss for the period of HK$7,029,000, contrasting with a profit of HK$18,425,000 in 2019[141]. - Total comprehensive income for the period was HK$525,000, compared to HK$4,517,000 in 2019[141]. - Basic and diluted loss per share was (1.9) cents, down from earnings of 4.9 cents per share in the previous year[139]. - Profit from operations dropped significantly to HK$1,272,000 compared to HK$26,760,000 in the same period last year[139]. - The Group's revenue from property management contracts derived from a single customer amounted to approximately HK$19 million during the six months ended 30 September 2020, indicating a significant reliance on this customer[190]. - Total revenue for the Group in 2020 was HK$19,561,000, compared to HK$22,888,000 in 2019, indicating a decline of approximately 14.3%[195]. Segment Performance - Revenue in the property management segment decreased by 6.4% due to the termination of two property management contracts during the period[18]. - The lifestyle entertainment segment has been significantly impacted by the COVID-19 outbreak, contributing to the overall economic downturn in Hong Kong[17]. - Revenue from the lifestyle entertainment segment decreased by approximately HK$27.8 million to HK$8.8 million for the six months ended 30 September 2020 from HK$36.6 million for the same period in 2019[29]. - For the six months ended September 30, 2020, the reportable segment for Lifestyle Entertainment in Hong Kong reported a loss of HK$5,655,000 compared to a loss of HK$3,489,000 in the same period of 2019[195]. - The Property Management segment in the PRC generated a profit of HK$25,216,000, slightly down from HK$26,377,000 in 2019[195]. Cost Management - Staff costs decreased by approximately 23.9% or HK$19.4 million to approximately HK$61.6 million for the six months ended 30 September 2020 from approximately HK$81.0 million for the same period in 2019[31]. - Property rentals and related expenses decreased by approximately 75.3% or HK$5.6 million to approximately HK$1.9 million for the six months ended 30 September 2020 from approximately HK$7.5 million for the same period in 2019[34]. - Advertising and marketing expenses decreased by approximately 72.2% or HK$2.2 million to HK$0.9 million for the six months ended 30 September 2020 from approximately HK$3.1 million for the same period in 2019[35]. Cash Flow and Financial Position - Total current assets as of 30 September 2020 were approximately HK$298.3 million, while current liabilities were approximately HK$187.8 million, resulting in a current ratio of 1.6 times[45]. - Cash at bank and in hand was approximately HK$190.7 million as of 30 September 2020, down from approximately HK$206.7 million as of 31 March 2020[49]. - Total interest-bearing borrowings as of 30 September 2020 were approximately HK$94.7 million, down from HK$131.3 million as of 31 March 2020[50]. - The gearing ratio as of 30 September 2020 was approximately 0.73, compared to 1.02 as of 31 March 2020[50]. - Cash generated from operating activities was HK$12,316,000, down from HK$13,564,000 in the prior period[151]. - The company incurred a net cash outflow of HK$38,314,000 in financing activities, compared to HK$4,117,000 in the previous year[155]. - Cash and cash equivalents at the end of the period decreased to HK$190,689,000 from HK$195,853,000 in the previous year[155]. Strategic Focus and Business Development - The Group aims to maintain its status as a leading nightlife entertainment service provider in Hong Kong despite the economic challenges posed by COVID-19[23]. - The Group has reshaped the brand of Zentral by offering various music styles and creating different atmospheres in its venues[23]. - The Group is cautiously managing cash flow resources in the lifestyle entertainment segment during the ongoing economic challenges[17]. - The Group aims to diversify its income stream by exploring different business and investment opportunities[62]. - The property management segment experienced a temporary setback but remains a strategic focus due to its potential for stable income and returns for shareholders[72]. Governance and Compliance - The company complied with the Corporate Governance Code during the six months ended 30 September 2020[121]. - The Audit Committee reviewed the accounting principles and practices adopted by the Group for the six months ended 30 September 2020[123][125]. - The interim financial report was prepared in accordance with Hong Kong Accounting Standard 34, with no significant issues identified during the review[134][138]. - The Group's interim financial report is unaudited but has been reviewed by KPMG, ensuring compliance with Hong Kong standards[168]. Shareholder Information - The Board did not recommend the payment of an interim dividend for the six months ended 30 September 2020, consistent with the previous year where no dividend was paid[78]. - As of 30 September 2020, Zheng Jian Jiang held a long position of 219,950,000 shares, representing approximately 58.66% of the issued share capital of the Company[92]. - The Company has adopted a share option scheme effective from 3 January 2014, valid for 10 years, aimed at providing incentives to eligible participants[98]. - As of 30 September 2020, no other persons had disclosed interests or short positions in the shares or underlying shares of the Company under the provisions of the SFO[97]. - The interests of the Directors and chief executive in shares and debentures were fully compliant with the Model Code during the six months ended 30 September 2020[79].
奥克斯国际(02080) - 2021 - 中期财报