Financial Performance - The group's revenue for the six months ended June 30, 2020, decreased by approximately 10.1% to about HKD 88.3 million, compared to HKD 98.3 million in 2019[9]. - The loss attributable to owners of the company from continuing operations for the six months ended June 30, 2020, was approximately HKD 9.8 million, compared to HKD 4.3 million in 2019[9]. - The basic loss per share from continuing operations for the six months ended June 30, 2020, was approximately HKD 2.06, compared to HKD 0.16 in 2019[9]. - For the three months ended June 30, 2020, the revenue was HKD 30.96 million, down from HKD 52.66 million in 2019[11]. - The group reported a pre-tax loss from continuing operations of HKD 10.59 million for the six months ended June 30, 2020, compared to a loss of HKD 2.84 million in 2019[11]. - The total comprehensive loss for the six months ended June 30, 2020, was HKD 11.65 million, compared to HKD 7.24 million in 2019[11]. - For the three months ended June 30, 2020, the company reported a loss attributable to owners of the company of HKD (2,804) thousand, compared to a profit of HKD 554 thousand for the same period in 2019, representing a decline of 605%[12]. - For the six months ended June 30, 2020, the loss attributable to owners was HKD (9,844) thousand, compared to a loss of HKD (4,298) thousand in 2019, indicating an increase in losses of 129%[12]. - The company reported a pre-tax loss of HKD 10,588 for the first half of 2020, compared to a pre-tax loss of HKD 5,363 in the first half of 2019[30]. Revenue Breakdown - The wine trading segment generated revenue of HKD 42,247, up 15% from HKD 36,744 in the same period last year[41]. - The food business revenue decreased by 24% to HKD 46,051 from HKD 60,676 year-on-year[41]. - The food business recorded a revenue decline to approximately HKD 46.2 million, down about 23.7% from HKD 60.6 million in the first half of 2019[103]. - The wine trading business generated revenue growth to approximately HKD 42.2 million, up from HKD 36.7 million in 2019, but incurred a segment loss of about HKD 0.7 million[102]. - Interest income from the lending business was approximately HKD 0.05 million, down from HKD 0.93 million in 2019, with a segment loss of about HKD 0.04 million[106]. Expenses and Costs - The cost of sales for the six months ended June 30, 2020, was HKD 37.92 million, compared to HKD 29.43 million in 2019[11]. - Employee benefit expenses for the six months ended June 30, 2020, amounted to HKD 18.7 million, down from HKD 22.81 million in 2019[11]. - Total comprehensive expenses for the six months ended June 30, 2020, amounted to HKD (10,962) thousand, compared to HKD (6,679) thousand in 2019, reflecting a 64% increase in total expenses[15]. - The cost of goods sold for the food business and wine trading business was approximately HKD 18.9 million and HKD 37.8 million, respectively, representing about 21.4% and 42.8% of their revenues[107]. Assets and Liabilities - As of June 30, 2020, total assets were HKD 450,452 thousand, an increase from HKD 422,403 thousand as of December 31, 2019, showing a growth of 7%[13]. - The company's current liabilities decreased to HKD 27,566 thousand from HKD 48,581 thousand, a reduction of 43%[14]. - The net asset value increased to HKD 372,643 thousand as of June 30, 2020, compared to HKD 358,956 thousand at the end of 2019, representing a growth of 4%[14]. - Total liabilities increased to HKD 168,366 from HKD 123,574 at the end of 2019[32]. - The company's borrowings increased to 70,493,000 HKD as of June 30, 2020, from 14,981,000 HKD at the end of 2019, primarily due to a rise in installment loans[71]. Cash Flow - The net cash flow used in operating activities for the six months ended June 30, 2020, was HKD (36,136) thousand, compared to HKD (25,261) thousand for the same period in 2019[9]. - The net cash flow from investing activities for the same period was HKD (18,061) thousand, a decrease from HKD 15,697 thousand in 2019[9]. - The net cash flow from financing activities increased to HKD 57,124 thousand from HKD 29,815 thousand year-over-year[9]. - The total cash and cash equivalents at the end of the period was HKD 1,077 thousand, down from HKD 18,690 thousand in the previous year[9]. - The company reported a significant increase in bank balances and cash to HKD 5,570 thousand, compared to HKD 29,418 thousand in the previous year[9]. - As of June 30, 2020, the group had cash and cash equivalents of approximately HKD 5.5 million, an increase from HKD 4.1 million at the end of 2019[116]. Share Capital and Equity - The company issued new shares resulting in an increase in share capital to HKD 53,325 thousand from HKD 41,493 thousand, an increase of 29%[15]. - The company's weighted average number of ordinary shares for the six months ended June 30, 2020, was 477,155,000, a decrease from 2,680,154,000 in the same period of 2019, reflecting a change in capital structure[46]. - The company raised approximately HKD 34,301,000 from a rights issue and placement, which was used for repaying commercial paper and general working capital[79]. - A total of 212,785,460 shares were issued through the exercise of share options at prices of HKD 0.042 and HKD 0.0652 per share, generating around HKD 10,419,000[78]. - The company completed a share consolidation on September 2, 2019, merging every 10 existing shares with a par value of HKD 0.01 into one share with a par value of HKD 0.1[81]. Corporate Governance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial statements and found them compliant with applicable accounting standards and GEM listing rules[145]. - The company has adopted a code of conduct for securities transactions by directors, ensuring compliance with trading restrictions prior to financial performance announcements[142]. - The company has maintained compliance with the corporate governance code as per GEM listing rules during the interim period[143]. - The board of directors consists of both executive and independent non-executive members, ensuring a balanced governance structure[146]. Risk Management - The company has not entered into any agreements to hedge against foreign exchange risks, primarily operating in HKD and AUD[122]. - The company has maintained strict monitoring of its outstanding loans and interest to mitigate credit risk[58]. - The company has no significant credit risk concerns regarding trade receivables, as they involve multiple customers with good payment histories[66].
百利达集团控股(08179) - 2020 - 中期财报