PICO FAR EAST(00752) - 2025 - 中期业绩

Financial Statements Condensed Consolidated Income Statement For the six months ended April 30, 2025, the Group's revenue grew 17.9% to HKD 3.469 billion, gross profit increased 14.1% to HKD 994.4 million, and profit attributable to equity holders rose 10.7% to HKD 212.3 million Performance Summary for the Six Months Ended April 30, 2025 | Indicator | H1 2025 (HKD Thousand) | H1 2024 (HKD Thousand) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 3,469,367 | 2,942,002 | +17.9% | | Gross Profit | 994,432 | 871,855 | +14.1% | | Core Operating Profit | 280,844 | 267,290 | +5.1% | | Operating Profit | 268,787 | 254,156 | +5.8% | | Profit Before Tax | 258,682 | 239,658 | +7.9% | | Profit Attributable to Equity Holders of the Company | 212,330 | 191,701 | +10.7% | | Basic Earnings Per Share | 17.06 Cents | 15.47 Cents | +10.3% | Condensed Consolidated Statement of Comprehensive Income Total comprehensive income for the period decreased to HKD 180.7 million, primarily due to an exchange loss of HKD 25.1 million from overseas operations, contrasting with a gain in the prior year Summary of Total Comprehensive Income | Indicator | H1 2025 (HKD Thousand) | H1 2024 (HKD Thousand) | | :--- | :--- | :--- | | Profit for the Period | 206,335 | 198,809 | | Other Comprehensive (Expense) Income | (25,633) | 20,683 | | Total Comprehensive Income for the Period | 180,702 | 219,492 | Condensed Consolidated Statement of Financial Position As of April 30, 2025, the Group's total assets reached HKD 5.793 billion and net assets were HKD 2.334 billion, both showing slight growth, with net current assets at HKD 1.122 billion reflecting a robust financial position Summary of Statement of Financial Position | Indicator | April 30, 2025 (HKD Thousand) | October 31, 2024 (HKD Thousand) | | :--- | :--- | :--- | | Non-current Assets | 1,472,324 | 1,527,722 | | Current Assets | 4,320,706 | 4,179,415 | | Total Assets | 5,793,030 | 5,707,137 | | Current Liabilities | 3,124,017 | 3,057,024 | | Non-current Liabilities | 334,545 | 331,940 | | Total Liabilities | 3,458,562 | 3,388,964 | | Net Assets | 2,334,468 | 2,318,173 | Notes to the Condensed Consolidated Financial Statements 1. Basis of Preparation and Principal Accounting Policies This interim financial report adheres to HKAS 34, maintaining consistency with the 2024 annual financial statements, with no significant impact from newly adopted or revised standards - The interim financial report is prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting"[7] - Several revised standards were first adopted from November 1, 2024, but did not result in significant changes to accounting policies or retrospective adjustments[8] 2. Revenue and Segment Information The Group's revenue is primarily driven by four business segments, with "Exhibitions, Projects and Brand Activations" as the largest contributor, while the Middle East and other regions showed strong geographical growth Revenue by Business Segment (HKD Thousand) | Business Segment | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Exhibitions, Projects and Brand Activations | 3,054,592 | 2,540,122 | +20.2% | | Visual Brand Activations | 104,158 | 160,073 | -35.0% | | Museums and Themed Entertainment | 264,065 | 182,712 | +44.5% | | Conference Planning Activations | 46,552 | 59,095 | -21.2% | | Total | 3,469,367 | 2,942,002 | +17.9% | Revenue by Geographical Region (HKD Thousand) | Region | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Greater China | 1,156,507 | 1,346,371 | -14.1% | | Malaysia, Singapore, Philippines and Vietnam | 683,355 | 682,955 | +0.1% | | Bahrain, Oman, Qatar, Saudi Arabia and UAE | 550,982 | 392,699 | +40.3% | | UK and USA | 476,262 | 408,103 | +16.7% | | Other | 602,261 | 111,874 | +438.3% | 6. Dividends The Board declared an interim dividend of 5.5 HK cents per ordinary share for the six months ended April 30, 2025, maintaining the same payout as the previous year - The Board recommended an interim dividend of 5.5 HK cents per ordinary share, consistent with the prior year[24][30] 7. Earnings Per Share Basic earnings per share increased to 17.06 HK cents, up from 15.47 HK cents in the prior year, primarily driven by higher profit attributable to equity holders Earnings Per Share Calculation | Indicator | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit (HKD Thousand) | 212,330 | 191,701 | | Weighted Average Number of Ordinary Shares | 1,244,276,369 | 1,239,471,873 | | Basic Earnings Per Share | 17.06 Cents | 15.47 Cents | Business Review and Prospects Financial Performance During the review period, the Group achieved HKD 3.469 billion in revenue, HKD 280.8 million in core operating profit, and HKD 212.3 million in profit attributable to equity holders, with basic earnings per share at 17.06 HK cents Financial Performance Summary | Indicator | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | HKD 3.469 Billion | HKD 2.942 Billion | +17.9% | | Core Operating Profit | HKD 280.8 Million | HKD 267.3 Million | +5.1% | | Profit Attributable to Equity Holders | HKD 212.3 Million | HKD 191.7 Million | +10.7% | | Basic Earnings Per Share | 17.06 HK Cents | 15.47 HK Cents | +10.3% | Operational Review The Group, as a full-service brand activation agency, leverages a "Content, Community, Creativity, and Data" strategy with AI to enhance efficiency, experiencing strong growth in "Exhibitions, Projects and Brand Activations" but a decline in "Visual Brand Activations" due to market shifts - The Group positions itself as a full-service brand activation agency, utilizing a "Content, Community, Creativity, and Data" strategy, and employing AI and data-driven technologies to enhance operational efficiency[31] Performance by Business Segment | Business Segment | Revenue Change | Profit Change | Main Driver/Reason | | :--- | :--- | :--- | :--- | | Exhibitions, Projects and Brand Activations | +20.2% | +45.0% | Delivery of major projects like COP29 | | Visual Brand Activations | -35.0% | -98.6% | Slowdown in China's automotive market, reduced showroom business | | Museums and Themed Entertainment | +44.3% | +35.1% | Increased business volume in Saudi Arabia and Asia | | Conference Planning Activations | -20.3% | -88.5% | Non-recurring income from subsidiary disposal in prior year | Exhibitions, Projects and Brand Activations This segment's revenue increased by 20.2% to HKD 3.054 billion and profit grew by 45.0% to HKD 283 million, driven by major global events like COP29 and Expo 2025 Osaka - Strong growth in segment revenue and profit, primarily driven by the delivery of the COP29 project[32] - Successfully delivered multiple global mega-events, including serving as the main official contractor for COP29, and activating the Vietnam Pavilion and Algeria Pavilion at Expo 2025 Osaka[36][37] Visual Brand Activations Revenue for this segment decreased by 35.0% due to the sluggish Chinese real estate and automotive markets, prompting a strategic shift towards sports brands and corporate showroom development - Segment revenue decreased by 35.0% due to the slowdown in China's automotive market[39] - Business focus shifted to strengthening collaborations with sports brands and concentrating on developing corporate showroom business to offset the decline in the automotive industry[39] Museums and Themed Entertainment This segment achieved stable business volume growth, with revenue increasing by 44.3% and profit by 35.1%, bolstered by significant project commissions in Saudi Arabia and Asia - Stable business volume growth and enhanced profitability, with several significant project commissions secured in Saudi Arabia and Asia[41] Conference Planning Activations The segment's profit decline was primarily due to non-recurring income in the prior year, with core business profitability improving through a strategic shift from a "project-centric" to an "ecosystem-led" model - Profit decline primarily due to non-recurring income from the disposal of a subsidiary in the prior year; core business profitability has actually improved[43] - Business strategy transformed from "project-centric" to "ecosystem-led," adopting an omnichannel approach to strengthen client engagement[43] Liquidity and Financial Information The Group maintains a robust financial position with HKD 1.746 billion in net cash balances, a current ratio of 1.38 times, and a low gearing ratio of 4.19%, supported by foreign exchange hedging policies Cash Position (HKD Million) | Indicator | April 30, 2025 | October 31, 2024 | | :--- | :--- | :--- | | Bank and Cash Balances | 2,145 | 1,914 | | Pledged Bank Deposits | 122 | 65 | | Less: Borrowings | (521) | (467) | | Net Cash Balances | 1,746 | 1,512 | Key Financial Ratios | Ratio | April 30, 2025 | October 31, 2024 | | :--- | :--- | :--- | | Current Ratio | 1.38 times | 1.37 times | | Gearing Ratio | 4.19% | 4.29% | Prospects Despite market uncertainties, the Group is confident in its future, leveraging its global network and integrated services, with secured projects for the upcoming periods and continued strategic diversification and technological integration to drive long-term value - The Group remains confident in its prospects, believing its global business network and integrated services contribute to resilience[55] - Multiple projects have been secured across all business segments for the second half of the fiscal year and beyond, including services for renowned brands such as Hisense Group, Yonex, and NEOM[55][56] - Strategic focus will continue on client diversification and leveraging AI and data-driven technologies to create integrated brand experiences, driving long-term value creation[61] Other Information Corporate Governance The Company largely complied with the Corporate Governance Code, with the only deviation being the combined roles of Chairman and CEO, which the Board believes maintains sufficient power balance - The Company complied with the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are not separated, held by the same individual[64] - The Board believes the current arrangement maintains a balance of power, as all major decisions are made in consultation with the Board and senior management, and there are five independent non-executive directors[64] Audit Committee The Audit Committee reviewed the Group's accounting principles, internal controls, and financial reporting matters, including these unaudited interim financial statements, in collaboration with management - The Audit Committee has reviewed these unaudited condensed consolidated interim financial statements[66]