Financial Performance - The group's revenue for the six months ended June 30, 2019, increased by approximately 22% to about HKD 98.36 million, compared to HKD 80.30 million in 2018[11]. - The loss attributable to owners of the company for the six months ended June 30, 2019, was approximately HKD 6.82 million, a significant improvement from HKD 66.24 million in 2018[11]. - Basic loss per share for the six months ended June 30, 2019, was approximately HKD 0.25 cents, compared to HKD 3.12 cents in 2018[11]. - The group recorded a net loss before tax of HKD 5.36 million for the six months, a reduction from HKD 66.20 million in the same period last year[12]. - The total comprehensive expenses for the six months ended June 30, 2019, amounted to HKD 7,244,000, a decrease from HKD 66,804,000 in the same period of 2018, indicating a reduction in overall losses[13]. - The company reported a pre-tax loss of HKD 5,363,000 for the first half of 2019, compared to a pre-tax loss of HKD 66,197,000 in the same period of 2018[46]. - The loss attributable to the company's owners improved by approximately 89.7% to about HKD 6.82 million in the mid-year of 2019, primarily due to the investment segment turning from a loss of approximately HKD 44.25 million in 2018 to a profit of about HKD 4.3 million in 2019[112]. Cost Management - Operating expenses decreased to HKD 19.54 million for the six months ended June 30, 2019, down from HKD 26.37 million in 2018, indicating improved cost management[12]. - Financial costs for the six months increased to HKD 3.86 million, compared to HKD 0.21 million in the previous year, reflecting higher borrowing costs[12]. - Employee benefits expenses increased to approximately HKD 22.81 million in the mid-year of 2019 from HKD 21.87 million in 2018, mainly due to salary adjustments to retain experienced staff[115]. Asset and Liability Management - The company's non-current assets totaled HKD 104,215,000 as of June 30, 2019, compared to HKD 83,343,000 as of December 31, 2018, reflecting a growth of approximately 25%[15]. - Current assets increased to HKD 509,507,000 as of June 30, 2019, up from HKD 383,102,000 at the end of 2018, marking a rise of about 33%[15]. - The total liabilities increased to HKD 61,115,000 as of June 30, 2019, compared to HKD 51,369,000 at the end of 2018, representing a rise of about 19%[16]. - The company's equity attributable to owners increased to HKD 374,013,000 as of June 30, 2019, from HKD 348,995,000 at the end of 2018, reflecting an increase of approximately 7%[16]. - The debt-to-equity ratio as of June 30, 2019, was approximately 48%, compared to 21% on December 31, 2018[124]. Cash Flow and Liquidity - For the six months ended June 30, 2019, the net cash flow used in operating activities was (HKD 25,261,000), compared to (HKD 1,035,000) for the same period in 2018, indicating a significant increase in cash outflow[18]. - The net cash flow from investing activities was HKD 15,697,000, a recovery from a cash outflow of (HKD 8,215,000) in the previous year, reflecting improved investment performance[18]. - The total cash and cash equivalents at the end of the period were HKD 29,418,000, down from HKD 36,320,000 at the end of 2018, indicating a decrease in liquidity[18]. - As of June 30, 2019, the group had an unencumbered bank balance and cash of approximately HKD 29.42 million, up from about HKD 7.22 million on December 31, 2018[121]. Business Strategy and Operations - The company plans to focus on expanding its market presence and enhancing product offerings in the upcoming quarters[11]. - The group has initiated new product development strategies aimed at increasing customer engagement and market share[11]. - The company is committed to improving operational efficiency and reducing losses in the next financial period[11]. - The group aims to enhance its wine trading sales capabilities and seeks acquisition opportunities to expand its customer base and improve performance in the wine trading segment[116]. - The group plans to actively seek opportunities to expand its lending business and will regularly monitor risks and adjust its investment portfolio as necessary[117]. - The company’s joint venture in China is focusing on expanding its restaurant network through local partners rather than operating its own restaurants due to rising operational costs[111]. Shareholder and Corporate Governance - The company did not recommend the payment of an interim dividend for both the 2019 and 2018 mid-year periods[50]. - The company has adopted a code of conduct for securities transactions in compliance with GEM Listing Rules, and all directors adhered to these standards during the review period[149]. - The company has complied with the corporate governance code as per GEM Listing Rules Appendix 15 during the first half of 2019[150]. - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial statements for the first half of 2019 and confirmed their compliance with applicable accounting standards and GEM Listing Rules[152]. Investment and Acquisitions - The company acquired the entire issued share capital of the Palida Group for HKD 76 million, with payment made through the issuance of 425,568,000 new shares at HKD 0.131 per share and HKD 20,250,592 in promissory notes[133]. - The company completed the acquisition of Irving Global Limited and its subsidiaries for HKD 9.9 million, with payment made via promissory notes[134]. - The company also acquired Happy Profit Global Limited and its subsidiaries for HKD 9.9 million, with payment made through promissory notes[134]. - The company sold its entire issued share capital of New Cook Capital Limited for a total cash consideration of HKD 13,380,000, completed on May 31, 2019[136]. Market and Segment Performance - The food business recorded a revenue increase of approximately 1.3% to about HKD 60.68 million compared to HKD 59.91 million in the same period of 2018, but operating loss increased from approximately HKD 0.13 million to about HKD 0.78 million due to rising food and labor costs[104]. - The lending business generated interest income of approximately HKD 0.94 million, down from HKD 4.55 million in 2018, with total loans outstanding at approximately HKD 572.51 million as of June 30, 2019[108]. - The wine trading business achieved revenue of approximately HKD 36.74 million, significantly up from HKD 15.82 million in 2018, with segment profit of approximately HKD 3.41 million compared to HKD 1.92 million in the previous year[109].
百利达集团控股(08179) - 2019 - 中期财报