Financial Performance - The group recorded unaudited revenue of approximately HKD 15.0 million for the six months ended June 30, 2020, a significant decrease of HKD 77.0 million or 83.7% compared to HKD 92.0 million for the same period in 2019[5]. - The group reported an unaudited loss attributable to owners of the company of approximately HKD 12.6 million for the six months ended June 30, 2020, compared to an unaudited profit of HKD 6.0 million for the same period in 2019[5]. - Basic and diluted loss per share for the six months ended June 30, 2020, was HKD 1.05, compared to earnings of HKD 0.66 per share for the same period in 2019[5]. - The group incurred a total loss before tax of HKD 12,604,000 for the six months ended June 30, 2020, with adjusted loss before interest, tax, depreciation, and amortization amounting to HKD 7,994,000[29]. - The group reported a loss attributable to owners of the company of HKD 7,413,000 for the six months ended June 30, 2020, compared to a profit of HKD 4,452,000 for the same period in 2019[44]. - The group recorded a loss of approximately HKD 12.6 million for the six months ended June 30, 2020, compared to a profit of about HKD 6.0 million for the same period in 2019, driven by decreased revenue and increased administrative expenses[82]. Revenue Breakdown - For the six months ended June 30, 2020, the group reported total segment revenue of HKD 15,046,000, with travel business contributing HKD 13,433,000 and automotive business contributing HKD 1,613,000[29]. - The travel business revenue decreased significantly from HKD 85,662,000 for the six months ended June 30, 2019 to HKD 13,433,000 in the same period of 2020, representing a decline of approximately 84.3%[30]. - The automotive business revenue also saw a decline from HKD 6,296,000 in the six months ended June 30, 2019 to HKD 1,613,000 in 2020, a decrease of about 74.3%[30]. - The group's revenue decreased approximately 83.7% from about HKD 92.0 million for the six months ended June 30, 2019, to about HKD 15.0 million for the six months ended June 30, 2020, primarily due to the impact of the pandemic and travel restrictions imposed by the Macau government[74]. Expenses and Costs - Administrative expenses increased to HKD 15.099 million for the six months ended June 30, 2020, compared to HKD 7.245 million for the same period in 2019[7]. - The cost of sales dropped approximately 81.7%, from about HKD 72.6 million to HKD 13.3 million, attributed to the decline in hotel room sales and car rental services[75]. - Gross profit fell approximately 91.2%, from about HKD 19.4 million to HKD 1.7 million, mainly due to reduced revenue from hotel room sales and car rental services[76]. - Other income and gains rose from approximately HKD 422,000 to about HKD 860,000, mainly due to one-time government subsidies received during the period[77]. Assets and Liabilities - Total assets less current liabilities amounted to HKD 86.378 million as of June 30, 2020, down from HKD 98.975 million as of December 31, 2019[10]. - The group's non-current assets were valued at HKD 18.615 million as of June 30, 2020, compared to HKD 20.671 million as of December 31, 2019[10]. - The total equity attributable to owners of the company was HKD 85.531 million as of June 30, 2020, compared to HKD 98.242 million as of December 31, 2019[10]. - The total borrowings and lease liabilities as of June 30, 2020, amounted to approximately HKD 7.6 million, an increase from approximately HKD 6.2 million on June 30, 2019[100]. Cash Flow - Cash flow from operating activities was negative at HKD 6,788,000 for the six months ended June 30, 2020, compared to positive cash flow of HKD 5,478,000 in 2019[20]. - The company’s cash and cash equivalents decreased by HKD 11,578,000, resulting in a closing balance of HKD 768,000[20]. - The company’s bank overdraft increased to HKD 4,879,000 as of June 30, 2020[20]. - The company’s cash and bank balances were HKD 4.111 million as of June 30, 2020, down from HKD 10.909 million as of December 31, 2019[10]. Dividends - The board of directors decided not to recommend the payment of an interim dividend for the six months ended June 30, 2020[6]. - The company declared dividends amounting to HKD 8,891,000 during the reporting period[11]. - The company did not declare or propose any interim dividends for the six months ended June 30, 2020, compared to an interim dividend of approximately HKD 8,891,000 declared in April 2019[49]. Government Support - The group recognized government subsidies amounting to HKD 560,000 for the six months ended June 30, 2020, which was not present in the previous year[36]. Future Outlook - The company anticipates a gradual recovery in its tourism business as the Macau government eases travel restrictions between China and Macau[71]. - The company plans to expand its fleet by acquiring additional vehicles and hiring more drivers to meet the growing demand for multi-purpose car rental services in Macau[111]. - The company aims to establish hotel room guarantee agreements with more hotel operators to increase the number of hotel rooms available and attract business travelers[111]. - The company intends to invest in digital marketing through social media and search engine advertising to enhance online sales channels[112]. - The company will continue to explore new hotel business opportunities under attractive conditions to capitalize on market rebound once conditions improve[113]. Shareholder Information - As of June 30, 2020, Mr. Cai Weizhen holds 900,000,000 shares, representing 75.0% of the company's total shares[119]. - Silver Esteem Limited, wholly owned by Mr. Cai Weizhen, is the beneficial owner of 900,000,000 shares, accounting for 75.0% of the total shares[123]. - Ms. Wang Peiqiong, as the spouse of Mr. Cai Weizhen, is also deemed to have an interest in 900,000,000 shares, which is 75.0% of the total shares[124]. Compliance and Governance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2020[128].
瀛海集团(08668) - 2020 - 中期财报