Financial Performance - The group recorded unaudited revenue of approximately HKD 5.1 million for the six months ended June 30, 2021, a significant decrease of HKD 9.9 million or 66.0% compared to HKD 15.0 million for the same period in 2020[5] - The unaudited loss attributable to owners of the company for the six months ended June 30, 2021, was approximately HKD 8.8 million, an improvement from a loss of HKD 12.6 million for the same period in 2020[5] - Basic and diluted loss per share for the six months ended June 30, 2021, was HKD 0.74, compared to HKD 1.05 for the same period in 2020[5] - The group reported a total comprehensive loss of HKD 8.8 million for the six months ended June 30, 2021, compared to HKD 12.7 million for the same period in 2020[8] - The company reported a net loss of HKD 12,604,000 for the six months ended June 30, 2021, compared to a loss of HKD 8,849,000 for the same period in 2020[14] - The group reported total financing costs of HKD 270 thousand for the six months ended June 30, 2021, compared to HKD 89 thousand for the same period in 2020[46] - The group reported a pre-tax loss of HKD 4,346,000 for the three months ended June 30, 2021, compared to a loss of HKD 7,413,000 for the same period in 2020, representing a 41.5% improvement[52] - For the six months ended June 30, 2021, the loss attributable to shareholders was HKD 8,849,000, down from HKD 12,604,000 in the same period of 2020, indicating a 29.0% reduction[52] - The company recorded a loss of approximately HKD 8.8 million for the six months ended June 30, 2021, compared to a loss of HKD 12.6 million for the same period in 2020, indicating a reduction in losses[91] Revenue Breakdown - The group reported revenue of HKD 5,103 thousand for the six months ended June 30, 2021, a decrease of 66.1% compared to HKD 15,046 thousand for the same period in 2020[41] - The travel business generated revenue of HKD 3,821 thousand for the six months ended June 30, 2021, down 71.6% from HKD 13,433 thousand in the prior year[41] - The car rental services segment reported revenue of HKD 1,282 thousand for the six months ended June 30, 2021, a decrease of 20.5% compared to HKD 1,613 thousand in the same period of 2020[41] Assets and Liabilities - Total assets less current liabilities amounted to HKD 72.4 million as of June 30, 2021, down from HKD 82.9 million as of December 31, 2020[12] - Non-current assets increased to HKD 27.6 million as of June 30, 2021, compared to HKD 24.6 million as of December 31, 2020[12] - Current liabilities decreased to HKD 8.3 million as of June 30, 2021, from HKD 9.9 million as of December 31, 2020[12] - The group’s equity attributable to owners of the company decreased to HKD 64.1 million as of June 30, 2021, from HKD 72.9 million as of December 31, 2020[12] - Total equity as of June 30, 2021, was HKD 64,114,000, a decrease from HKD 85,531,000 as of June 30, 2020[14] - The total borrowings and lease liabilities as of June 30, 2021, were approximately HKD 11.9 million, down from HKD 14.3 million as of December 31, 2020[111] - The company's debt-to-equity ratio as of June 30, 2021, was approximately 18.6%, compared to 19.7% as of December 31, 2020[113] Cash Flow and Expenditures - Cash flow from operating activities was negative HKD 26,068,000 for the six months ended June 30, 2021, compared to negative HKD 6,788,000 for the same period in 2020[23] - The company had cash and cash equivalents of HKD 15,622,000 at the end of June 30, 2021, down from HKD 24,165,000 at the beginning of the period[23] - The company incurred capital expenditures of HKD 6,955,000 for property, plant, and equipment during the reporting period[23] - The company generated net cash inflow from investing activities of HKD 19,983,000, a significant improvement from a net outflow of HKD 3,408,000 in the previous year[23] - The company’s financing activities resulted in a net cash outflow of HKD 2,511,000 for the period[23] Operational Challenges - The group faces various financial risks, including credit risk and liquidity risk, which are detailed in the annual report[30] - The company has faced significant risks due to the pandemic, affecting its operations and the tourism industry in Macau[100] - The number of visitors to Macau decreased by approximately 85.0% in the first five months of 2021 compared to the same period in 2020, impacting revenue generation[80] - The group's business and financial performance were significantly impacted by the pandemic, leading to a substantial decrease in visitors to Macau[122] Corporate Governance and Management - The board of directors decided not to recommend the payment of an interim dividend for the six months ended June 30, 2021, consistent with the previous year[5] - The group has not adopted new accounting standards that would significantly impact its financial position or performance[29] - The group continues to assess the impact of new accounting standards that have been issued but are not yet effective[29] - The board believes that maintaining high standards of corporate governance is essential for transparency and protecting shareholder interests[126] - The audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ended June 30, 2021, and believes they comply with applicable accounting standards and GEM listing rules[141] Future Plans and Strategies - The company plans to expand its tourism business to China and has acquired a travel agency in China as part of its diversification strategy[96] - The company aims to collaborate with more hotel operators, contingent on the pandemic control situation[96] - The company has allocated HKD 6.48 million for partnerships with more hotels, which remains unutilized as of the report date[92] - The group plans to continue exploring new hotel business opportunities under attractive conditions to capitalize on market recovery[124] - A hotel management service agreement was signed on June 17, 2021, allowing the group to exclusively control room availability and pricing at Huadu Hotel, expected to provide stable income[124] - The company plans to acquire 100% equity of Zhuhai Huanya International Travel Agency for RMB 800,000 (approximately HKD 976,000), which will become a wholly-owned subsidiary upon completion[106] Employee and Operational Metrics - Employee costs for the six-month period ending June 30, 2021, were approximately HKD 5.3 million, a decrease of about 13.1% compared to HKD 6.1 million for the same period in 2020[104] - The company has a total of 93 employees as of June 30, 2021, down from 107 employees a year earlier[104] - The average credit period granted by major suppliers is 30 days, indicating a stable supplier relationship[70] Shareholder Information - As of June 30, 2021, the chairman and CEO, Mr. Cai Weizhen, holds 900,000,000 shares, representing 75.0% of the company's equity[132] - Silver Esteem Limited, wholly owned by Mr. Cai, is the beneficial owner of the 900,000,000 shares, reinforcing his significant control over the company[135] - The company has not repurchased, sold, or redeemed any shares during the reporting period[131]
瀛海集团(08668) - 2021 - 中期财报