Financial Performance - The Group recorded an unaudited revenue of approximately HK$33.4 million for the six months ended 30 November 2019, representing a decrease of approximately 35.9% compared to the corresponding period in 2018 [18]. - Gross profit for the same period was approximately HK$10.7 million, reflecting a decrease of 61.2% compared to HK$27.7 million in 2018 [18]. - The unaudited loss for the six months ended 30 November 2019 was approximately HK$5.7 million, a decrease of approximately HK$20 million or 139.6% compared to a profit of HK$14.4 million in 2018 [18]. - Earnings per share for the period were reported at a loss of HK$0.71, compared to earnings of HK$1.79 per share in the previous year, marking a 139.6% decline [18]. - The decrease in revenue and profit was primarily attributed to a reduction in the number of pop concerts and average revenue per concert, as well as non-recurring professional expenses related to the proposed transfer of listing from GEM to the Main Board [18]. - Local economic and social uncertainties, including social unrest in Hong Kong, contributed to the financial performance during the period [18]. - The Group's financial results indicate significant challenges faced in the current market environment, necessitating strategic reassessment [18]. - For the six months ended November 30, 2019, the Group reported an unaudited loss of approximately HK$5.7 million, a decrease of about HK$20 million or approximately 139.6% compared to the same period in 2018 [21]. - Revenue for the six months ended November 30, 2019, was HK$33.472 million, down from HK$52.226 million in the same period of 2018, representing a decline of approximately 36% [25]. - Gross profit for the six months ended November 30, 2019, was HK$10.738 million, compared to HK$27.681 million in the same period of 2018, indicating a decrease of approximately 61% [25]. - The total expenses for the six months ended 30 November 2019 were HK$39,339,000, up from HK$34,940,000 in the same period of 2018, indicating an increase of approximately 12.9% [145]. Dividend and Equity - The Board does not recommend the payment of a dividend for the six months ended 30 November 2019 [19]. - The loss attributable to owners of the Company for the six months ended November 30, 2019, was HK$5.686 million, compared to a profit of HK$14.338 million in the same period of 2018 [27]. - Total equity decreased to HK$123,979,000 from HK$129,663,000, reflecting a decline of about 4.5% [53]. - The total equity attributable to owners of the company was HK$124,219,000, down from HK$129,905,000, marking a decrease of approximately 4.5% [53]. - The company did not recommend the payment of dividends for the six months ended 30 November 2019, consistent with the previous year where no dividends were declared [160]. Assets and Liabilities - Total assets as of November 30, 2019, amounted to HK$161.048 million, slightly up from HK$160.452 million as of May 31, 2019 [31]. - Cash and bank balances decreased to HK$25.520 million as of November 30, 2019, from HK$28.839 million as of May 31, 2019 [31]. - The Group's retained earnings as of November 30, 2019, were HK$58.364 million, down from HK$64.050 million as of May 31, 2019 [31]. - Total liabilities increased to HK$37,069,000, up from HK$30,789,000, representing a growth of approximately 20.5% [48]. - The company's bank borrowings amounted to HK$5,190,000, which is a significant component of current liabilities [48]. - The company had a taxation payable of HK$7,159,000, which is part of its current liabilities [48]. - The non-current portion of payables decreased from HK$9,336,000 as of May 31, 2019, to HK$11,576,000 as of November 30, 2019 [194]. Cash Flow and Operating Activities - Net cash generated from operating activities was HK$15,452,000, while net cash used in investing activities was HK$15,558,000, resulting in a net cash decrease of HK$3,319,000 [71]. - Cash and cash equivalents at the end of the period were HK$25,520,000, down from HK$38,311,000, indicating a decrease of approximately 33.3% [71]. - Total cash outflow for leases during the six months ended 30 November 2019 was HK$3,519,000, including payments for short-term leases of HK$1,518,000 [178]. Accounting Policies and Standards - The unaudited condensed consolidated financial information for the six months ended 30 November 2019 has been prepared in accordance with Hong Kong Financial Reporting Standards (HKFRSs) [75]. - The Group's significant accounting policies are consistent with those followed in the preparation of the consolidated financial statements for the year ended 31 May 2019 [76]. - The Group has adopted HKFRS 16 (Leases) effective from 1 June 2019, which may impact the financial reporting [76]. - The impact of adopting HKFRS 16 is disclosed in Note 3.2 of the report [76]. - The Group plans to adopt new standards and amendments when they become effective [81]. Revenue Breakdown - Revenue from visual display solution services for the three months ended 30 November 2019 was HK$14,962,000, a decrease from HK$22,783,000 in the same period of 2018 [134]. - Equipment rental income for the three months ended 30 November 2019 was HK$15,002,000, compared to HK$22,798,000 in the same period of 2018 [134]. - Revenue from Hong Kong for the six months ended 30 November 2019 was HK$13,606,000, slightly up from HK$13,187,000 in 2018 [141]. - Revenue from the PRC for the six months ended 30 November 2019 was HK$12,082,000, a significant decrease from HK$26,178,000 in 2018 [141]. - Revenue from Macau and other regions for the six months ended 30 November 2019 was HK$7,434,000, down from HK$9,913,000 in 2018 [141]. Trade Receivables and Payables - Trade receivables as of 30 November 2019 were HK$19,803,000, down from HK$25,055,000 as of 31 May 2019 [183]. - The ageing analysis of trade receivables showed that HK$8,707,000 were overdue by over 90 days as of 30 November 2019 [186]. - The credit quality of trade and other receivables is assessed based on historical default rates, indicating no significant defaults from counterparties [192]. - The current portion of payables for equipment was HK$11,576,000, compared to HK$9,336,000 as of May 31, 2019 [194]. - The company has no significant overdue payments from independent customers, reflecting a stable collection environment [192].
耀星科技集团(08446) - 2020 - 中期财报