Financial Performance - For the six months ended June 30, 2020, the group's revenue slightly decreased to approximately HKD 50.5 million, compared to HKD 50.7 million for the same period last year, representing a decrease of about 0.4%[5] - The gross profit for the period was approximately HKD 26.4 million, maintaining stability compared to HKD 26.5 million in the previous year, indicating a gross margin of approximately 52.2%[5] - Profit attributable to ordinary equity shareholders was approximately HKD 15.9 million, down from HKD 16.1 million in the same period last year, reflecting a decrease of about 1.2%[5] - Operating profit for the six months was approximately HKD 19.4 million, compared to HKD 19.1 million in the previous year, showing an increase of about 1.6%[7] - The total comprehensive income for the period was approximately HKD 15.5 million, down from HKD 16.4 million in the same period last year, representing a decrease of about 5.4%[9] - The company reported a basic and diluted earnings per share of HKD 0.85 for the six months, down from HKD 1.11 in the previous year, representing a decrease of approximately 23.4%[7] - The pre-tax profit for the six months ended June 30, 2020, was HKD 15,875,000, compared to HKD 16,060,000 in the same period of 2019, indicating a decline of 1.15%[31] - Basic earnings per share for the six months ended June 30, 2020, was HKD 1.59, down from HKD 1.61 in 2019, a decrease of 1.24%[31] Assets and Liabilities - As of June 30, 2020, total assets amounted to HKD 161.7 million, compared to HKD 168.2 million as of December 31, 2019, indicating a decrease of about 3.1%[11] - The net asset value increased to HKD 140.98 million from HKD 127.99 million, reflecting an increase of approximately 10.1%[11] - Cash and cash equivalents as of June 30, 2020, were HKD 94.4 million, compared to HKD 91.0 million at the end of 2019, showing an increase of about 3.5%[11] - Trade receivables as of June 30, 2020, amounted to HKD 62,079,000, down from HKD 74,124,000 as of December 31, 2019, a decrease of 16.26%[39] - The company’s total liabilities as of June 30, 2020, were HKD 18,833,000, slightly down from HKD 19,629,000 as of December 31, 2019[43] Cash Flow and Dividends - For the six months ended June 30, 2020, the net cash generated from operating activities was HKD 12,630,000, a decrease of 49% compared to HKD 24,916,000 for the same period in 2019[15] - The net cash from operating activities after tax payments was HKD 6,068,000, down from HKD 24,839,000 in the previous year, indicating a significant decline in operational efficiency[15] - The company paid dividends of HKD 2,500,000 for both the six months ended June 30, 2020, and 2019, maintaining its dividend policy despite the operational challenges[15] - The company did not recommend any interim dividend for the six months ended June 30, 2020, consistent with the previous year[33] Operational Highlights - The company continues to focus on its core business of interior design and project management services in Hong Kong and mainland China, with no new segments reported[17] - The group undertook several renovation projects for medical centers and offices, implementing preventive measures against COVID-19 to maintain a hygienic work environment[66] - The group is optimistic about the future of the interior design and renovation market, particularly in commercial spaces and medical centers, due to increasing public awareness of health issues and an aging population[69] - Revenue from medical center and corridor renovation projects increased from approximately HKD 14.3 million to HKD 31.6 million[71] Market and Strategic Initiatives - The company submitted a new formal application for a transfer of its shares from GEM to the main board, believing this will enhance its image and increase liquidity[67] - The company plans to expand its business in the Chinese market, with an actual expenditure of HKD 1.7 million against a planned usage of HKD 3.1 million, resulting in a remaining balance of HKD 1.4 million[95] - The company has revised its expansion plan, indicating that the actual usage of funds for expanding in the Chinese market has taken longer than initially expected[98] Governance and Compliance - The company has adopted the corporate governance code as per GEM Listing Rules Appendix 15 and has complied with its provisions, except for a deviation regarding the separation of the roles of Chairman and CEO[110] - The Audit Committee, established in November 2016, reviewed the interim financial results for the six months ended June 30, 2020, and confirmed that the financial statements were prepared in accordance with applicable accounting standards and GEM Listing Rules[114]
K W NELSON GP(08411) - 2020 - 中期财报