Financial Performance - The Group recorded a revenue of approximately HK$125.5 million for the six months ended 30 September 2020, representing a decrease of approximately HK$78.5 million or 38.5% compared to HK$204.0 million for the same period in 2019[8]. - The Group recorded a loss attributable to the owners of the Company of approximately HK$1.2 million for the six months ended 30 September 2020, representing a decrease of approximately HK$5.6 million or 127.3% compared to a profit of approximately HK$4.4 million for the same period in 2019[8]. - For the six months ended September 30, 2020, the company reported a loss of HK$1,211,000, compared to a profit of HK$4,351,000 for the same period in 2019, indicating a significant decline in performance[13]. - The basic and diluted loss per share for the six months ended 30 September 2020 was HK$0.30, compared to earnings of HK$1.09 per share for the same period in 2019[11]. - The Group reported a loss attributable to equity shareholders of HK$1,211,000 for the six months ended September 30, 2020, compared to a profit of HK$4,351,000 for the same period in 2019, representing a significant decline[58]. - Gross profit decreased from approximately HK$9.4 million for the six months ended 30 September 2019 to approximately HK$2.1 million for the same period in 2020, representing a decline of approximately 77.7%[125]. - The Group's gross profit margin fell from 4.6% to 1.7% due to competitive pricing strategies in a challenging business environment[125]. Revenue and Sales - Revenue from diesel oil sales for the three months ended September 30, 2020, was HK$49,792,000, a decrease of 54.2% compared to HK$108,690,000 in the same period of 2019[34]. - Total revenue for the six months ended September 30, 2020, was HK$125,476,000, down 38.4% from HK$204,021,000 in the previous year[34]. - The sales quantity of diesel oil increased by approximately 7.7% from 45.7 million litres for the six months ended 30 September 2019 to 49.2 million litres for the six months ended 30 September 2020[107][110]. - The average selling price of diesel oil decreased by approximately 42.9% from HK$4.45 per litre for the six months ended 30 September 2019 to HK$2.54 per litre for the six months ended 30 September 2020[108][111]. - The Group's cost of sales was approximately HK$123.4 million for the six months ended 30 September 2020, representing a decrease of 36.6% from HK$194.6 million for the same period in 2019[114]. - The average unit purchase cost of diesel oil decreased by 41.8% from approximately HK$4.19 per litre for the six months ended 30 September 2019 to approximately HK$2.44 per litre for the six months ended 30 September 2020[115][118]. Expenses and Costs - The Group's gross profit margin decreased from approximately 4.6% for the six months ended 30 September 2019 to approximately 1.7% for the six months ended 30 September 2020[8]. - The Group's administrative expenses increased to HK$4.829 million for the six months ended 30 September 2020, compared to HK$4.644 million for the same period in 2019[11]. - The Group's finance costs increased to HK$101, up from HK$60 for the same period in 2019[11]. - The Group's administrative and other operating expenses increased by approximately HK$0.2 million or 4.3% from approximately HK$4.6 million for the six months ended 30 September 2019 to approximately HK$4.8 million for the six months ended 30 September 2020[122]. - Staff costs for the six months ended September 30, 2020, were HK$3,187,000, slightly down from HK$3,229,000 in the previous year[46]. Assets and Liabilities - As of 30 September 2020, the Group's total assets less current liabilities amounted to HK$61.847 million, a decrease from HK$63.694 million as of 31 March 2020[12]. - The Group's net current assets were HK$52.235 million as of 30 September 2020, compared to HK$54.316 million as of 31 March 2020[12]. - Trade receivables decreased to HK$52.743 million as of 30 September 2020 from HK$55.071 million as of 31 March 2020[12]. - The total cash and cash equivalents at the end of the reporting period decreased to HK$409,000 from HK$2,936,000 a year earlier, showing a decline in liquidity[15]. - The company incurred HK$1,877,000 in capital expenditures for property, plant, and equipment during the reporting period, down from HK$2,290,000 in the previous year[15]. - The accumulated profits as of September 30, 2020, stood at HK$57,450,000, a decrease from HK$61,313,000 as of September 30, 2019, indicating a reduction in retained earnings[13]. - The company’s total equity as of September 30, 2020, was HK$61,450,000, down from HK$65,313,000 a year earlier, indicating a decrease in shareholder value[13]. Dividends and Shareholder Information - The Board does not recommend the payment of any dividend for the six months ended 30 September 2020[8]. - The Group did not recommend the payment of any dividend for the six months ended September 30, 2020, consistent with the previous year[55]. - As of September 30, 2020, Mr. Law Ming Yik holds a 62.78% interest in the Company through Fully Fort Group Limited[180]. - Fully Fort Group Limited holds 251,110,000 shares, representing 62.78% of the Company's issued share capital[187]. - Fully Fort Group Limited is wholly owned by Mr. Law, indicating a concentrated ownership structure[189]. COVID-19 Impact and Response - The uncertainty surrounding the COVID-19 pandemic has made the Group's operating environment extremely challenging, prompting close monitoring of cash flow management[98]. - The Group will continue to adopt suitable precautionary measures to ensure the safety of all staff members and working partners amid the pandemic[99]. - The Group will continue to closely monitor the development of the COVID-19 pandemic and adjust its business plans accordingly to ensure smooth operations during this challenging period[102]. Compliance and Governance - The Company has established an Audit Committee comprising three independent non-executive Directors to comply with GEM Listing Rules[200]. - The Audit Committee was established to ensure compliance with corporate governance standards as set out in the GEM Listing Rules[200]. - Giraffe Capital Limited has been appointed as the compliance adviser, declaring its independence as per GEM Listing Rules[194]. - There are no competing interests reported by the Directors during the Reporting Period[193]. - The Group's remuneration policies are reviewed periodically and are maintained within market levels[166]. Capital Expenditures and Investments - The company has not reported any new product launches or significant market expansions during this period[17]. - The Group had capital commitments of HK$0.7 million for the acquisition of property, plant, and equipment as of 30 September 2020[129]. - The Group ordered two new diesel tank wagons in October 2019, which were delivered and available for use in April 2020[156]. - The Group has ordered one new diesel tank wagon in May 2020, expected to be delivered by March 2021[156]. - The Group plans to utilize approximately HK$5.0 million of the Net Proceeds for upgrading its information technology systems, with full utilization expected by March 31, 2021[169].
裕丰昌控股(08631) - 2021 - 中期财报