Financial Performance - For the six months ended June 30, 2021, the group's revenue decreased by approximately 37.7% to about HKD 31.4 million, compared to HKD 50.5 million for the same period last year[5]. - The gross profit for the period fell to approximately HKD 8.3 million, down from HKD 26.4 million in the previous year[5]. - The profit attributable to ordinary equity shareholders was approximately HKD 1.3 million, a decrease from HKD 15.9 million in the same period last year[5]. - The operating profit for the six months ended June 30, 2021, was HKD 1.6 million, down from HKD 19.4 million in the previous year[7]. - The total comprehensive income for the period was HKD 1.3 million, compared to HKD 15.5 million for the same period last year[10]. - The company reported a pre-tax profit of 769,000 HKD, a decrease from 8,513,000 HKD in the same period of 2020[39]. - The group's profit for the period fell from approximately HKD 15.9 million to about HKD 1.3 million, reflecting a significant decline of approximately 91.8%[73]. Dividend and Shareholder Returns - The board of directors did not recommend the payment of an interim dividend for the period, compared to no dividend in the same period last year[5]. - The company paid no dividends during the current period, compared to HKD 2,500,000 paid in the previous year, reflecting a strategy to conserve cash[18]. - The company did not declare an interim dividend for the six months ended June 30, 2021, consistent with the same period in 2020[41]. Assets and Liabilities - Current assets as of June 30, 2021, amounted to HKD 155.9 million, slightly up from HKD 155.5 million at the end of 2020[13]. - The total assets less current liabilities stood at HKD 143.3 million, compared to HKD 142.2 million at the end of 2020[13]. - The net asset value as of June 30, 2021, was HKD 142.9 million, an increase from HKD 142.0 million at the end of 2020[13]. - The company reported cash and cash equivalents of HKD 128.5 million, up from HKD 113.7 million at the end of 2020[13]. - Trade receivables as of June 30, 2021, were 21,747,000 HKD, down from 38,581,000 HKD as of December 31, 2020, indicating a decrease of approximately 43.6%[45]. - Trade payables increased to HKD 7.5 million as of June 30, 2021, compared to HKD 5.3 million as of December 31, 2020, reflecting a 41.5% increase[48]. - The company recorded a loss allowance for trade receivables of 4,424,000 HKD as of June 30, 2021, compared to 3,880,000 HKD as of December 31, 2020[45]. - The company has no significant contingent liabilities as of June 30, 2021[55]. Cash Flow and Operational Efficiency - The company reported a net cash inflow from operating activities of HKD 15,621,000 for the six months ended June 30, 2021, compared to HKD 12,630,000 for the same period in 2020, representing a year-over-year increase of approximately 23.6%[18]. - The net cash generated from operating activities after tax payments was HKD 15,621,000, significantly up from HKD 6,068,000 in the previous year, indicating improved operational efficiency[18]. - The company’s cash flow from financing activities showed a net outflow of HKD 853,000, a decrease from HKD 2,869,000 in the previous year, indicating reduced financing costs[18]. Market Focus and Business Strategy - Revenue from external customers in Hong Kong was HKD 15,134,000, while revenue from mainland China and Macau was HKD 157,000, indicating a strong focus on the Hong Kong market[27]. - The company’s operational activities are primarily focused on interior design, project management services, and interior renovation works in Hong Kong and mainland China[21]. - The management's discussion indicates a focus on commercial interior design and contracting services, primarily in Hong Kong[62]. - The company plans to strengthen its market adaptability and continue expanding its business in response to the growing demand for design and renovation projects[64]. Employee and Operational Costs - Total employee costs for the six months ended June 30, 2021, amounted to 3,671,000 HKD, up from 3,041,000 HKD in the same period of 2020, reflecting an increase of approximately 20.8%[30]. - As of June 30, 2021, the group had 18 employees, a decrease from 20 employees as of December 31, 2020, and regularly reviews compensation to attract and retain high-performing staff[82]. Corporate Governance and Compliance - The company has adopted the corporate governance code as per GEM listing rules and has complied with its provisions, except for a deviation regarding the separation of roles of the chairman and CEO[105][107]. - The audit committee has reviewed the unaudited interim financial results for the six months ending June 30, 2021, ensuring compliance with applicable accounting standards and GEM listing rules[110].
K W NELSON GP(08411) - 2021 - 中期财报