Financial Performance - For the six months ended June 30, 2021, the group's revenue was approximately HKD 65.3 million, a decrease of about 25.6% compared to the previous period[32]. - The gross profit for the same period was approximately HKD 21.5 million, down about 28.8%, with a gross margin decline from approximately 34.5% to 33.0%[32]. - The profit attributable to equity holders for the period was approximately HKD 41,000, a significant decrease of about 99.6% compared to the previous period[32]. - Earnings per share for the period was approximately HKD 0.01, reflecting a decline of about 99.6% from the previous period[33]. - The operating loss for the six months was approximately HKD 940,000, compared to an operating profit of HKD 10.8 million in the previous period[36]. - Total comprehensive income attributable to equity holders for the period was HKD 630,000, down from HKD 8.85 million in the previous period[38]. - The company reported a net loss before tax of approximately HKD 662,000 for the three months ended June 30, 2021, compared to a profit of HKD 10.28 million in the previous period[38]. - The company reported a net profit of HKD 9,811,000 for the six months ended June 30, 2021, compared to a profit of HKD 41,000 in the previous period[46]. - The company’s total comprehensive income for the period was HKD 1,678,000, compared to HKD 9,811,000 in the previous period[46]. - The group reported a net profit of HKD 41,000 for the six months ended June 30, 2021, compared to HKD 9,811,000 for the same period in 2020[65]. Revenue Breakdown - Revenue from beauty products for the six months ended June 30, 2021, was HKD 55,037,000, a decrease of 24% compared to HKD 72,566,000 for the same period in 2020[58]. - Revenue from cosmetic bags for the six months ended June 30, 2021, was HKD 10,237,000, down 32% from HKD 15,166,000 in the previous year[58]. - Total revenue for the group for the six months ended June 30, 2021, was HKD 65,274,000, representing a decline of 26% from HKD 87,732,000 in the same period of 2020[58]. - Revenue from external customers in the United States was HKD 51,215,000, a decrease of 24% from HKD 67,037,000 in the previous year[69]. - Revenue from external customers in China was HKD 4,070,000, a slight decrease from HKD 4,554,000 in the same period of 2020[69]. Assets and Liabilities - Total assets as of June 30, 2021, were HKD 278,646,000, a decrease of 8.6% from HKD 304,854,000 as of December 31, 2020[41]. - Total liabilities decreased to HKD 54,509,000 from HKD 82,395,000, a reduction of 33.9%[43]. - Trade receivables amounted to 33,005 million HKD as of June 30, 2021, down from 85,681 million HKD as of December 31, 2020, showing a significant reduction of 61.5%[89]. - Trade payables totaled 15,937 million HKD as of June 30, 2021, compared to 23,006 million HKD as of December 31, 2020, indicating a decrease of 30.6%[94]. Cash Flow and Expenses - Cash and cash equivalents increased to HKD 136,020,000 from HKD 119,028,000, representing a growth of 14.3%[48]. - Operating cash flow for the six months ended June 30, 2021, was HKD 18,822,000, a significant increase from HKD 3,472,000 in the same period of 2020[48]. - The total administrative expenses for the six months were approximately HKD 15.97 million, slightly up from HKD 15.79 million in the previous period[36]. - Sales and distribution expenses rose to approximately HKD 6.3 million, an increase of about HKD 1.0 million due to higher shipping costs per unit[116]. Dividends and Shareholder Information - The board of directors did not recommend the payment of any interim dividend for the period, consistent with the previous period[34]. - The company did not declare an interim dividend for the six months ended June 30, 2021, consistent with the previous year[83]. - The weighted average number of ordinary shares issued was 400 million as of June 30, 2021, unchanged from the previous year[95]. - As of June 30, 2021, the major shareholders hold 300,000,000 shares, representing 75.00% of the voting rights in the company[158]. - Classic Charm Investments Limited holds 300,000,000 shares, with Mr. Ko, Ms. Zhu, and Ms. Chan owning 50.8%, 39.7%, and 9.5% respectively[169]. Employee and Operational Information - As of June 30, 2021, the total employee cost, including director remuneration, was approximately HKD 10.4 million, an increase from approximately HKD 9.8 million in the prior period, primarily due to salary increases and a rise in employee numbers[132]. - The company has 175 full-time employees as of June 30, 2021, compared to 173 employees as of December 31, 2020[132]. Future Plans and Risks - The group plans to assess changing market preferences and introduce new products to meet customer demands in the future[107]. - The company faced significant risks due to the ongoing pandemic, which has negatively impacted business operations and customer performance[138]. Stock Option Plan - The stock option plan allows the company to grant options to eligible individuals, aiming to attract, retain, and reward contributors to enhance the company's and shareholders' interests[146]. - The total number of shares that may be issued upon the exercise of all options granted under the stock option plan cannot exceed 10% of the total issued shares at any time[147]. - The total number of shares issued and to be issued from options granted to eligible individuals within any twelve-month period cannot exceed 1% of the company's issued share capital[149]. - If granting options to eligible individuals exceeds the 0.1% limit of the issued share capital, shareholder approval is required[151]. - The stock option plan is valid for 10 years from the adoption date, expiring on September 28, 2027[151]. - The exercise price of the stock options will not be less than the highest of the closing price on the offer date or the average closing price over the five trading days preceding the offer date[154]. - As of June 30, 2021, there were no outstanding, granted, canceled, exercised, or lapsed options[155]. Audit and Events - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited interim financial information for the six months ending June 30, 2021[187]. - There have been no significant events affecting the group's business or financial performance after June 30, 2021, as of the report date[189].
德宝集团控股(08436) - 2021 - 中期财报