Revenue Performance - For the six months ended December 31, 2020, the Group's revenue was approximately HK$53.8 million, a 38.6% increase from approximately HK$38.8 million for the same period in 2019[10]. - Revenue increased by approximately HK$15.0 million, reaching approximately HK$53.8 million for the six months ended December 31, 2020, up from approximately HK$38.8 million for the same period in 2019, driven by a significant increase in interior solutions services revenue (approximately HK$38.0 million for the six months ended December 31, 2020, up from approximately HK$16.9 million in 2019)[19]. - Revenue from local business in Hong Kong, Macau, and Mainland China increased significantly to approximately HK$48.9 million, constituting about 90.9% of total revenue during the period[12]. - Revenue from Hong Kong increased to HK$29,116,000 for the six months ended December 31, 2020, up 48.7% from HK$19,550,000 in the prior year[166]. - Revenue from the PRC surged to HK$19,817,000, a significant increase from HK$1,454,000 in the same period last year[166]. - Revenue from interior solutions projects increased by approximately 124.9% from approximately HK$16.9 million for the six months ended December 31, 2019 to approximately HK$38.0 million for the Period, attributed to large projects awarded by renowned property developers[33]. Profitability and Loss - The gross profit for the same period was approximately HK$11.4 million, slightly down from approximately HK$11.7 million in 2019, indicating a gross margin of about 21.2%[10]. - The Group's gross profit decreased by approximately 2.6% to approximately HK$11.4 million for the six months ended December 31, 2020, with a gross profit margin of approximately 21.1% compared to 30.2% in the prior period[38][43]. - The consolidated net loss decreased to approximately HK$3.8 million from approximately HK$7.6 million in the previous year, reflecting improved cost management[10]. - Loss before income tax expenses decreased to HK$3,734,000, improving by 51.0% from a loss of HK$7,604,000 in the prior period[139]. - Loss attributable to owners of the Company for the period was HK$3,755,000, a reduction of 50.8% compared to HK$7,628,000 in the previous year[139]. - Basic and diluted loss per share improved to HK$0.52, compared to HK$1.27 for the same period in 2019[139]. Cost Management - Administrative expenses decreased to approximately HK$16.5 million from approximately HK$19.2 million, contributing to the reduction in net loss[14]. - Direct costs increased by approximately 56.5% from approximately HK$27.1 million for the six months ended December 31, 2019 to approximately HK$42.4 million for the Period, representing approximately 69.8% and 78.9% of revenue for the corresponding periods, respectively[37]. - The management is actively reviewing expenditure structures and implementing cost reduction measures to enhance competitiveness[14]. - Employee benefit expenses decreased to HK$10,875,000, down 8.7% from HK$11,918,000 in the previous year[180]. Business Strategy and Market Focus - The Group is focusing on resuming overseas business as the COVID-19 pandemic situation gradually improves with vaccine availability[13]. - The Group is focusing on expanding its principal business through cooperation with various business partners, particularly in the property market, which is identified as a key area for synergy[22]. - The Group plans to actively seek business opportunities globally as the COVID-19 pandemic recovers, leveraging partnerships with established suppliers to enhance competitiveness[29]. - The design and creative team is being expanded to broaden revenue sources by providing design services to a diverse range of potential customers, including traditional and online businesses[31]. - The significant increase in revenue from local markets demonstrates the effectiveness of the Group's strategic focus on these regions[12]. Financial Position and Assets - As of 31 December 2020, cash and bank balances amounted to approximately HK$24.6 million, down from approximately HK$27.5 million as of 30 June 2020[41][45]. - Total assets increased to HK$68,564,000 as of December 31, 2020, up from HK$54,937,000 as of June 30, 2020, representing a growth of approximately 24.7%[141]. - Current liabilities rose to HK$43,839,000, compared to HK$23,282,000 in the previous period, indicating an increase of about 88.6%[141]. - The company’s total equity as of December 31, 2020, was HK$15,340,000, down from HK$19,095,000, indicating a decrease of approximately 19.5%[141]. - The Group's specified non-current assets totaled HK$17,157,000 as of December 31, 2020, down from HK$18,960,000 as of June 30, 2020[169]. Corporate Governance - The Group is committed to high standards of corporate governance, having adopted the Corporate Governance Code[122]. - The Company continues to enhance its corporate governance practices to ensure compliance with the Corporate Governance Code[132]. - The roles of Chairman and Chief Executive Officer are held by the same individual, Mr. Lee Wai Sang, which the Board believes provides strong leadership[131]. Shareholder Information - Mr. Lee holds 450,000,000 shares in the Company, representing a 62.5% shareholding[103]. - CGH (BVI) Limited, a company owned 50% by Mr. Lee and Ms. Leung, is the beneficial owner of 450,000,000 shares, also representing 62.5%[110]. - As of December 31, 2020, no other directors or senior management had interests in the shares or debentures of the Company that required disclosure[104]. Cash Flow and Financing - The company generated net cash used in operating activities of HK$7,791,000, compared to a net cash generated of HK$3,085,000 in the prior year[148]. - The company raised new bank borrowings of HK$7,000,000 during the period[148]. - The Group had bank borrowings of HK$7.0 million as of 31 December 2020, resulting in a gearing ratio of 45.6%[48][61]. Other Financial Information - The Group did not declare any interim dividend for the six months ended December 31, 2020[64]. - There were no significant contingent liabilities as of December 31, 2020[63]. - The Group did not hold any significant investments as of December 31, 2020 and has no plans for material investments or capital assets[65].
易纬集团(03893) - 2021 - 中期财报