Financial Performance - Revenue for the six months ended September 30, 2020, was HKD 114,176,000, a decrease of 16.1% compared to HKD 136,115,000 for the same period in 2019[7]. - Gross profit for the same period was HKD 22,603,000, down 15.4% from HKD 26,684,000 in 2019[9]. - The net profit attributable to owners for the six months was HKD 4,522,000, a decrease of 24.1% compared to HKD 5,969,000 in the previous year[19]. - Basic and diluted earnings per share for the six months were HKD 1.13, down from HKD 1.49 in 2019, representing a decline of 24.2%[22]. - Total comprehensive income for the period was HKD 4,476,000, a decrease of 25.0% from HKD 5,969,000 in the same period last year[17]. - Operating cash flow for the six months was HKD 11,895,000, down from HKD 15,995,000 in 2019, indicating a decline of 25.8%[30]. - The group reported a revenue of HKD 53,856,000 for the three months ended September 30, 2020, a decrease of 17.8% compared to HKD 65,486,000 for the same period in 2019[50][58]. - Revenue decreased by approximately 16.1% from about HKD 136.1 million to about HKD 114.2 million due to the COVID-19 pandemic[72]. - Cost of sales decreased by approximately 16.3% from about HKD 109.4 million to about HKD 91.6 million, directly related to the decrease in revenue[73]. - Gross profit decreased by approximately 15.3% from about HKD 26.7 million to about HKD 22.6 million, with gross profit margins remaining stable at approximately 19.6% and 19.8%[74]. - The company recorded a profit attributable to owners of approximately HKD 4.5 million, down from about HKD 6.0 million in the previous period[82]. Cash Flow and Assets - Total assets as of September 30, 2020, were HKD 207,771,000, compared to HKD 205,124,000 as of March 31, 2020, showing a slight increase of 1.3%[23]. - Current liabilities amounted to HKD 231,022,000, a decrease from HKD 232,513,000 as of March 31, 2020, reflecting a reduction of 0.6%[23]. - The operating cash flow before changes in working capital was a net outflow of HKD 67,847 thousand[31]. - The net cash used in investing activities was HKD 2,698 thousand, compared to HKD 4,271 thousand in the previous year[32]. - The net cash used in financing activities was HKD 81,055 thousand, a significant increase from HKD 151,004 thousand in the prior year[33]. - The cash and cash equivalents at the end of the period increased to HKD 26,515 thousand, compared to a decrease of HKD 43,368 thousand in the previous year[33]. - The company reported a decrease in trade receivables, which positively impacted cash flow[31]. Financing and Costs - The company reported a financing cost of HKD 2,900,000 for the six months, down 31.9% from HKD 4,271,000 in the previous year[14]. - The financing costs for the six months ended September 30, 2020, were HKD 2,900,000, a decrease of 31.9% from HKD 4,271,000 in the same period of 2019[58][60]. - Administrative expenses decreased from about HKD 8.5 million to about HKD 7.1 million, mainly due to reduced legal and professional fees[79]. - Financing costs decreased from about HKD 4.3 million to about HKD 2.9 million, attributed to a reduction in trust receipt loans[80]. Market and Operational Strategy - The company is focused on expanding its market presence in the wine and alcoholic beverage sector[35]. - The group has undergone a restructuring, enhancing its operational efficiency and market positioning[38]. - The group has rented a new warehouse in Kwai Chung to enhance storage capacity and is actively seeking suitable properties for acquisition as its own warehouse[100]. - The group opened a retail store in Tsim Sha Tsui in December 2018 and is considering the establishment of a third retail store, subject to the impact of COVID-19 on the retail environment[100]. - The estimated use of net proceeds includes HKD 38.9 million for enhancing warehouse storage and HKD 23.3 million for establishing new retail stores, with a timeline for completion by March 31, 2021[103]. - The group is currently negotiating the acquisition of a property in Kwun Tong, as property prices in Hong Kong have shown a moderate decline since their peak in 2019 due to COVID-19[104]. Corporate Governance and Compliance - The financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards, ensuring compliance and transparency[36]. - The company has adopted new accounting policies that do not significantly impact its financial position or performance[40]. - The company is committed to high-level corporate governance and has adopted the principles and code provisions of the GEM Listing Rules Appendix 15[130]. - The Audit Committee, established on December 18, 2017, consists of three independent non-executive directors and is responsible for reviewing the financial reporting process and internal control systems[131]. - The Audit Committee has reviewed the unaudited condensed consolidated results for the period and found them to comply with applicable accounting standards and GEM Listing Rules[131]. Shareholding and Equity - As of September 30, 2020, the total issued shares of the company were 400,000,000[110]. - Shirz Limited holds 168,000,000 shares, representing 42% of the total issued shares[113]. - Sunshine Consultancy holds 112,000,000 shares, representing 28% of the total issued shares[114]. - The controlling shareholder, Mr. Ding Zhiwei, has a total beneficial interest of 70% in the company[119]. - The controlling shareholder is required to maintain at least 50% beneficial interest as per the financing agreements[120]. - No stock options have been granted, exercised, canceled, or lapsed since the adoption of the stock option plan in December 2017[123]. - The company and its subsidiaries did not purchase, sell, or redeem any listed securities during the reporting period[125]. - The company has confirmed compliance with the non-competition agreement established on December 18, 2017[127]. - All directors have adhered to the securities trading code of conduct during the reporting period[128].
威扬酒业控股(08509) - 2021 - 中期财报