Financial Performance - Total revenue for the six months ended June 30, 2021, was approximately HKD 40.3 million, a decrease of about 4.0% compared to HKD 41.9 million in the same period of 2020[10] - Gross profit for the same period was approximately HKD 9.1 million, an increase of about 8.3% from HKD 8.4 million in 2020, with a gross margin rising from 20.0% to 22.5%[13] - Adjusted EBITDA for the period was (HKD 7.1 million), compared to (HKD 2.3 million) in the same period of 2020[10] - The company reported a loss attributable to owners of the company of (HKD 10.4 million) for the six months ended June 30, 2021, compared to (HKD 25.0 million) in 2020[10] - Revenue for the three months ended June 30, 2021, was HKD 22,426 thousand, representing a 47.5% increase from HKD 15,176 thousand in the same period of 2020[33] - Total comprehensive loss for the six months ended June 30, 2021, was HKD 11,019 thousand, compared to HKD 27,088 thousand in the same period of 2020[35] - Basic loss per share for the six months ended June 30, 2021, was HKD (0.12), compared to HKD (0.40) for the same period in 2020[35] - The company reported a basic loss attributable to owners of approximately HKD 10,405,000 for the six months ended June 30, 2021, compared to a loss of HKD 25,028,000 for the same period in 2020, representing a 58.4% improvement[69] Project and Operational Metrics - The number of projects completed decreased by 31.6% to 26 projects in 2021 from 38 projects in 2020, primarily due to project delays and the ongoing negative impact of COVID-19[5] - Average revenue per project increased by approximately 36.4% to about HKD 1.5 million in 2021 from HKD 1.1 million in 2020[8] - The number of office projects decreased by 63.6% to 12 in 2021, while commercial projects increased by 133.3% to 7, and residential projects increased by 250.0% to 7[5] - The company continues to focus on larger projects, which have helped maintain competitive advantages and business growth despite the unstable business environment[13] Expenses and Liabilities - Total operating expenses for the six months ended June 30, 2021, were approximately HKD 18.2 million, up from HKD 12.9 million in 2020, mainly due to increased employee benefits and advertising costs[13] - The adjusted EBITDA for the six months ended June 30, 2021, was approximately -7.1 million HKD, compared to -2.3 million HKD for the same period in 2020, primarily due to the combined effects of an overall increase in gross profit and total operating expenses[14] - Total liabilities as of June 30, 2021, were approximately 120.5 million HKD, an increase from approximately 111.6 million HKD as of December 31, 2020[16] - The debt-to-asset ratio as of June 30, 2021, was 78.4%, up from 75.0% as of December 31, 2020, primarily due to an increase in the carrying amount of promissory notes[16] Cash Flow and Equity - As of June 30, 2021, the group had cash and cash equivalents of approximately 12.0 million HKD, down from approximately 24.6 million HKD as of December 31, 2020[16] - The current ratio as of June 30, 2021, was approximately 0.7, compared to 1.3 as of December 31, 2020[16] - The company reported a net cash outflow from operating activities of HKD 12,105,000 compared to a net inflow of HKD 1,255,000 in the same period of 2020[43] - The company’s total equity attributable to owners was HKD (23,999,000), a decrease from HKD (14,393,000) at the beginning of the period[41] Share Capital and Issuance - The company issued 266,520,000 new shares at a subscription price of HKD 0.27 per share, which was approved by shareholders on August 10, 2021[48] - The company's issued and paid-up share capital increased to 888,400,000 shares as of June 30, 2021, from 872,400,000 shares as of December 31, 2020[91] - The company proposed a share consolidation of every ten existing shares into one consolidated share with a nominal value of HKD 0.1[93] - The company also proposed a rights issue of three shares for every one consolidated share held at a subscription price of HKD 0.27 per rights share[93] Acquisitions and Investments - The group completed the acquisition of YTO Limited for a total consideration of 4,480,000 HKD, paid through the issuance of 112,000,000 shares, representing approximately 15.84% of the enlarged issued share capital[28] - The identifiable net assets acquired from YTO amounted to HKD 1,349,000, with total assets including property, plant, and equipment of HKD 5,615,000 and total liabilities of HKD 4,266,000[106] - Cash and cash equivalents acquired from YTO were HKD 1,436,000, contributing to a net cash inflow of HKD 1,436,000 from the acquisition[107] Marketing and Strategic Plans - The company plans to expand its operations and has proposed a rights issue to strengthen its capital base[48] - The company plans to expand its market coverage and has relocated its office to Kwun Tong, enhancing its image with innovative designs[126] - The company continues to invest in marketing efforts, including advertising in MTR stations and donations to charities to enhance its corporate image[140] Corporate Governance and Compliance - The board believes the company has complied with all corporate governance codes as per GEM listing rules during the six months ending June 30, 2021[160] - The company has adopted a code of conduct for directors regarding securities trading, confirming compliance for the six months ending June 30, 2021[161] - An audit committee was established on June 15, 2016, consisting of three independent non-executive directors, responsible for reviewing financial statements and overseeing internal control procedures[164]
利骏集团香港(08360) - 2021 - 中期财报