Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 14,681,000, a decrease of 30.4% compared to HKD 21,298,000 in 2020[1]. - Gross profit for the same period was HKD 6,669,000, down 26.2% from HKD 9,037,000 in 2020[1]. - Profit before tax decreased significantly to HKD 558,000, a decline of 89.5% from HKD 5,322,000 in the previous year[1]. - Net profit for the period was HKD 245,000, a decrease of 95.2% compared to HKD 5,116,000 in 2020[1]. - Basic and diluted earnings per share were HKD 0.0019, down from HKD 0.0399 in the previous year[1]. - Other income for the six months ended September 30, 2021, totaled HKD 1,731,000, a decline of 62.7% compared to HKD 4,639,000 in the same period of 2020[24]. - The profit for the six months ended September 30, 2021, was HKD 245,000, a significant decrease of 95.2% from HKD 5,116,000 in 2020[32][34]. - The total income tax expense for the six months ended September 30, 2021, was HKD 313,000, compared to HKD 206,000 for the same period in 2020, representing a 52% increase[9][30]. Assets and Liabilities - Total assets as of September 30, 2021, were HKD 96,614,000, slightly up from HKD 96,387,000 as of March 31, 2021[2]. - Cash and cash equivalents decreased significantly to HKD 13,746,000 from HKD 89,728,000 at the beginning of the period[5]. - Trade receivables decreased to HKD 3,013,000 as of September 30, 2021, from HKD 4,196,000 as of March 31, 2021, indicating a 28.3% decline[45][48]. - Trade payables increased to HKD 748,000 as of September 30, 2021, from HKD 536,000 as of March 31, 2021, representing a 39.5% increase[49][50]. - The group had current assets of approximately HKD 39,402,000, down from HKD 98,043,000 as of March 31, 2021[85]. - The group has no significant contingent liabilities or capital commitments as of September 30, 2021[87][89]. - The group has no bank borrowings as of September 30, 2021, maintaining a strong liquidity position with cash and bank balances of approximately HKD 13,746,000[85]. Revenue Sources - The company is primarily engaged in providing mobile and other personal electronic product repair and refurbishment services, as well as selling related accessories and support services[8]. - Repair service revenue was HKD 14,545,000, down 18.5% from HKD 17,897,000 in the previous year[18]. - Major customer II contributed HKD 5,581,000, an increase of 46.5% from HKD 3,815,000 in 2020, while major customer I generated HKD 3,959,000, a decrease of 13.1% from HKD 4,557,000[22]. - The group generated net cash from operating activities of approximately HKD 640,000 during the period[85]. Expenses and Costs - The cost of sales decreased to approximately HKD 8,012,000, a decline of about 34.7% from HKD 12,261,000 in the previous year, attributed to lower parts and direct labor costs[69]. - Administrative expenses increased by approximately 28.1% to HKD 5,474,000 from HKD 4,274,000 in the previous year, mainly due to increased depreciation of right-of-use assets and property[73]. - Net operating expenses were approximately HKD 1,241,000, down 69.4% from HKD 4,053,000 in the previous year, primarily due to reduced commission payments related to a mobile screen protection plan[73]. Investments and Acquisitions - The company acquired property, plant, and equipment for approximately HKD 31,228,000 during the period, compared to none in 2020[35]. - The company recognized an increase in right-of-use assets of approximately HKD 5,821,000 for new leases during the period, with no such acquisitions in 2020[37]. - The group purchased commercial property for approximately HKD 56,740,000[93]. - The net proceeds from the placement and listing amounted to approximately HKD 14.9 million, fully utilized for acquiring commercial property and general working capital[98]. Shareholder Information - As of September 30, 2021, the company had issued and fully paid 128,342 thousand shares, maintaining the same number as on March 31, 2021[51]. - East-Asia Pacific Limited holds 66,000,000 shares, representing approximately 51.43% of the company's issued shares[116]. - Major shareholders include J. Safra Sarasin Trust Company, holding 66,000,000 shares, also representing 51.43%[116]. - The company has a stock option plan approved on May 2, 2013, which has not had any options granted, exercised, or canceled as of September 30, 2021[110]. Corporate Governance - The company has complied with the Corporate Governance Code, with updates provided to the board regarding financial status and prospects[119]. - The Audit Committee was established on May 2, 2013, to oversee the integrity of financial statements and risk management systems[122]. - The Audit Committee consists of three independent non-executive directors, with Mr. Cao Jiayi serving as the chairman[122]. - The committee is responsible for recommending the appointment, reappointment, and removal of external auditors[122]. - The Audit Committee has reviewed the unaudited interim results for the period[122]. Future Outlook - The group is optimistic about future economic prospects as the COVID-19 situation stabilizes in Hong Kong[96]. - The company aims to maintain its market share and leadership position by providing high-quality services and improving operational efficiency despite a competitive environment[66]. - The group continues to seek potential revenue sources to maximize returns for the group and its shareholders[96].
电讯首科(03997) - 2022 - 中期财报