Financial Performance - The group's revenue for the six months ended September 30, 2021, was approximately HKD 14.4 million, an increase of about 8.3% compared to HKD 13.3 million for the same period in 2020[3]. - Gross profit for the reporting period was approximately HKD 11.4 million, representing an increase of about 11.8% from HKD 10.2 million in the previous year, with a gross margin of approximately 79.2%[7]. - The net loss for the reporting period was approximately HKD 4.8 million, a decrease from a net loss of HKD 5.6 million in the same period last year[7]. - The group reported revenue of HKD 14,396,000 for the six months ended September 30, 2021, an increase of 8.5% compared to HKD 13,268,000 for the same period in 2020[54]. - Gross profit for the same period was HKD 11,409,000, representing a 11.5% increase from HKD 10,232,000 year-on-year[54]. - The group reported a loss attributable to equity holders of the company of HKD 4,788,000 for the six months ended September 30, 2021, compared to a loss of HKD 5,592,000 for the same period in 2020[101]. Expenses and Cost Management - Administrative expenses decreased by approximately 10.1% to about HKD 14.2 million from HKD 15.8 million for the six months ended September 30, 2020, primarily due to reduced rental and salary expenses[9]. - The group’s administrative expenses decreased to HKD 14,247,000 for the six months ended September 30, 2021, from HKD 15,785,000 for the same period in 2020[54]. - Total remuneration for key management personnel was HKD 1,782,000 for the six months ended September 30, 2021, a decrease from HKD 2,305,000 in the same period of 2020, reflecting a decline of approximately 22.7%[130]. - Contributions to retirement plans for key management personnel were HKD 49,000 for the six months ended September 30, 2021, down from HKD 67,000 in the previous year, showing a decrease of about 26.9%[130]. Cash Flow and Liquidity - The group's cash and bank balance decreased by approximately 46.2% to about HKD 2.1 million as of September 30, 2021, from HKD 3.9 million on March 31, 2021[13]. - Operating cash flow for the six months ended September 30, 2021, was HKD 2,051,000, compared to an outflow of HKD 1,408,000 for the same period in 2020[63]. - The net cash inflow from operating activities for the six months ended September 30, 2021, was approximately HKD 2,100,000, indicating an improvement in cash flow management[72]. - The company plans to continue improving its working capital management to generate sufficient cash flow to meet its obligations over the next twelve months[72]. Assets and Liabilities - Current liabilities net worth increased by approximately 20% to about HKD 3.0 million as of September 30, 2021, compared to HKD 2.5 million on March 31, 2021[13]. - Total assets as of September 30, 2021, were HKD 106,143,000, a decrease from HKD 111,213,000 as of March 31, 2021[56]. - The group’s net asset value decreased to HKD 23,346,000 as of September 30, 2021, down from HKD 27,898,000 as of March 31, 2021[57]. - Trade receivables as of September 30, 2021, amounted to HKD 799 million, down from HKD 982 million as of March 31, 2021, representing a decrease of approximately 18.6%[107]. - Trade payables increased significantly to HKD 1,026 million as of September 30, 2021, compared to HKD 361 million as of March 31, 2021, reflecting an increase of approximately 184.5%[110]. Financing and Debt - The debt-to-equity ratio as of September 30, 2021, was approximately 414.7%, up from 352.2% on March 31, 2021, due to increased bank borrowings and lease liabilities[15]. - Total bank borrowings as of September 30, 2021, were HKD 50,625 million, a slight decrease from HKD 50,750 million as of March 31, 2021, showing a reduction of about 0.25%[114]. - The effective interest rate for bank borrowings ranged from 2.06% to 3.00% as of September 30, 2021, compared to 2.13% to 3.00% as of March 31, 2021[117]. - The group reported total financing costs of HKD 1,612,000 for the six months ended September 30, 2021, down from HKD 1,757,000 in the same period of 2020[93]. Corporate Governance - The company maintained high standards of corporate governance and complied with the relevant provisions of the corporate governance code[30]. - The board confirmed compliance with the code of conduct for securities transactions by directors during the six months ended September 30, 2021[31]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ended September 30, 2021[32]. Shareholder Information - As of September 30, 2021, the directors and senior management held significant interests in the company, with Mr. Chan Kwong Yuen holding approximately 74.74% of the shares through Profit Ocean Enterprises Limited[34]. - The company has granted 3,200,000 shares under the share option scheme, representing 0.89% of the total issued shares[44]. - As of September 30, 2021, a total of 30,900,000 share options were unexercised, with 28,650,000 remaining unexercised after accounting for cancellations and expirations[48]. - The group did not declare any dividends for the six months ended September 30, 2021, consistent with the previous year[24]. Government Support - The group received government subsidies totaling HKD 1,979,000 under the Employment Support Scheme to retain employees during the COVID-19 pandemic[88].
英记茶庄集团(08241) - 2022 - 中期财报