PICO FAR EAST(00752) - 2025 - 中期财报

Pico Far East Group 2025 Interim Report Summary Financial Highlights The Group reported strong revenue growth of 17.9% to HK$3.469 billion, with core operating profit up 5.1% to HK$281 million and profit attributable to owners of the Company increasing 10.7% to HK$212 million, alongside a stable interim dividend Key Financial Indicators for H1 FY2025 | Indicator | H1 2025 (Unaudited) | H1 2024 (Unaudited) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | HK$3.469 Billion | HK$2.942 Billion | +17.9% | | Core Operating Profit | HK$281 Million | HK$267 Million | +5.1% | | Profit Attributable to Owners of the Company | HK$212 Million | HK$192 Million | +10.7% | | Basic Earnings Per Share | 17.06 HK cents | 15.47 HK cents | +10.3% | | Proposed Interim Dividend | 5.5 HK cents | 5.5 HK cents | 0% | Consolidated Financial Statements Condensed Consolidated Income Statement The Group's total revenue grew 17.9% to HK$3.469 billion, gross profit increased 14.1% to HK$994 million, and profit attributable to owners of the Company achieved a solid 10.7% growth to HK$212 million Condensed Consolidated Income Statement Summary (HK$'000) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Revenue | 3,469,367 | 2,942,002 | | Gross Profit | 994,432 | 871,855 | | Core Operating Profit | 280,844 | 267,290 | | Operating Profit | 268,787 | 254,156 | | Profit Before Tax | 258,682 | 239,658 | | Profit for the Period | 206,335 | 198,809 | | Profit Attributable to Owners of the Company | 212,330 | 191,701 | | Basic Earnings Per Share | 17.06 HK cents | 15.47 HK cents | Condensed Consolidated Statement of Comprehensive Income Total comprehensive income for the period decreased to HK$181 million from HK$219 million last year, primarily due to a negative foreign exchange difference from overseas operations - Due to the shift from positive to negative exchange differences from overseas operations, other comprehensive (expense) income recorded a net expense of HK$25.63 million for the period, compared to a net income of HK$20.68 million in the prior period[3] - Total comprehensive income attributable to owners of the Company was HK$187 million, lower than HK$212 million in the prior period[3] Condensed Consolidated Balance Sheet As of April 30, 2025, the Group maintained a robust financial position with total assets of HK$5.793 billion and net assets of HK$2.334 billion, supported by strong liquidity and ample cash balances Balance Sheet Summary (HK$'000) | Item | April 30, 2025 | October 31, 2024 | | :--- | :--- | :--- | | Non-current Assets | 1,472,324 | 1,527,722 | | Current Assets | 4,320,706 | 4,179,415 | | Current Liabilities | 3,124,017 | 3,057,024 | | Non-current Liabilities | 334,545 | 331,940 | | Net Assets | 2,334,468 | 2,318,173 | | Equity Attributable to Owners of the Company | 2,335,938 | 2,291,917 | Condensed Consolidated Statement of Cash Flows The Group generated HK$267 million in net cash from operating activities, significantly reduced net cash outflow from investing activities, and saw a net increase of HK$262 million in cash and cash equivalents Cash Flow Statement Summary (HK$'000) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net cash generated from operating activities | 266,715 | 286,062 | | Net cash used in investing activities | (27,910) | (66,360) | | Net cash generated from (used in) financing activities | 23,419 | (155,607) | | Net increase in cash and cash equivalents | 262,224 | 64,095 | Notes to the Financial Statements The notes detail key accounting policies, segment information, revenue recognition, and balance sheet items, highlighting the "Exhibitions, Projects, and Brand Activation" segment as a primary growth driver - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting," with accounting policies largely consistent with the prior year, and the Group has assessed new standards with no significant impact expected[11][12][15] - The Board recommended an interim dividend of 5.5 HK cents per share, consistent with the prior period[41] - The Group's trade receivables turnover is favorable, with 73.8% of trade receivables aged 91 days or less[45] Business Review and Prospects Operations Review The Group's four business segments showed mixed performance, with "Exhibitions, Projects and Brand Activation" and "Museums and Themed Entertainment" driving strong growth, while "Visual Brand Activation" declined significantly Performance by Business Segment (HK$'000) | Business Segment | Revenue (H1 2025) | Revenue YoY | Profit (H1 2025) | Profit YoY | | :--- | :--- | :--- | :--- | :--- | | Exhibitions, Projects and Brand Activation | 3,054,592 | +20.2% | 283,395 | +45.0% | | Visual Brand Activation | 104,158 | -35.0% | 124 | -98.6% | | Museums and Themed Entertainment | 264,065 | +44.3% | 20,798 | +35.1% | | Conference and Show Management | 46,552 | -20.3% | 9,940 | -88.5% | - The Group actively adopts digital tools such as AI and data-driven technologies to enhance operational efficiency, reduce costs, and maintain competitiveness[55] - Geographically, revenue from Greater China decreased, while markets in the Middle East (Bahrain, Saudi Arabia, etc.) and the UK/US regions showed significant growth[34] Exhibitions, Projects and Brand Activation This segment was a primary growth driver, achieving strong revenue and profit increases, largely due to successful delivery of major global projects like COP29 and integrating digital interactive elements - This segment's revenue increased by 20.2% to HK$3.054 billion, with profit surging 45.0% to HK$283 million[56] - The successful delivery of the COP29 project, the largest temporary facility in the history of the UN Climate Change Conference, was a key growth factor and received ISO20121 sustainability certification[57][59] Visual Brand Activation This segment's revenue declined 35.0% due to a slowdown in China's automotive and real estate markets, prompting a strategic shift towards sports brands and corporate showrooms - This segment's revenue decreased by 35.0%, and profit plummeted by 98.6%[56] - The business focus is shifting from automotive showrooms to sports brand retail and corporate showrooms to diversify operations[62] Museums and Themed Entertainment This segment experienced stable business volume growth, with revenue increasing 44.3% and improved profitability, securing significant projects in Saudi Arabia and Asia - This segment's revenue grew 44.3% to HK$264 million, and profit increased 35.1% to HK$20.8 million[56] - Multiple significant projects have been secured in Saudi Arabia and Asia, laying a foundation for future growth[64] Conference and Show Management This segment's profit declined significantly due to a prior-year one-off gain from a subsidiary sale, but core business profitability improved, with a strategic shift towards an "ecosystem-led" model - The profit decline is primarily attributed to a non-recurring gain from the sale of InfocommAsia Pte Ltd. in the prior period[66] - The business model is transitioning to an "ecosystem-led" approach, leveraging content, community, creativity, and data pillars with an omnichannel strategy for sustainable "always-on" services[66][67] Liquidity and Financial Position The Group maintains a very robust financial position with a net cash balance of HK$1.746 billion, strong liquidity ratios, and a very low debt-to-equity ratio of 4.19%, alongside active foreign exchange hedging Key Financial Ratios | Indicator | April 30, 2025 | October 31, 2024 | | :--- | :--- | :--- | | Net Cash Balance | HK$1.746 Billion | HK$1.512 Billion | | Current Ratio | 1.38 times | 1.37 times | | Debt-to-Equity Ratio | 4.19% | 4.29% | - The Group hedges foreign exchange risks through foreign currency forward contracts and cross-currency swap contracts[73] Prospects Despite market uncertainties, the Group is confident in its future growth, supported by a global network, integrated brand experience services, clear growth strategies, and robust project pipelines across all segments - The Exhibitions, Projects and Brand Activation segment has secured multiple projects for the second half of the fiscal year and beyond, including the FIFA Club World Cup and Arabian Travel Market exhibition[76] - The Visual Brand Activation segment will continue to expand beyond automotive brands, exploring corporate showrooms and sports retail projects, while leveraging AR/VR technologies[77] - The Museums and Themed Entertainment segment has several major ongoing projects, including Saudi Arabia's SEVEN themed entertainment project (expected completion 2026) and a Hollywood movie theme park in Japan (expected completion 2027)[78] - The Conference and Show Management segment will explore new opportunities through its "ecosystem-led" model, with major projects including the Beijing International Science and Technology Expo and the World Gas Conference[80][81] Corporate Governance and Shareholder Information Directors' and Major Shareholders' Interests The report details the shareholdings of directors and major shareholders, with Pine Asset Management Limited as the largest shareholder at 36.93%, and directors holding shares through personal interests and share option schemes Major Shareholders' Long Positions | Shareholder Name | Capacity | Shareholding Percentage | | :--- | :--- | :--- | | Pine Asset Management Limited | Beneficial Owner | 36.93% | | FMR LLC | Interest of Controlled Corporation | 9.89% | | Brandes Investment Partners, L.P. | Investment Manager | 8.46% | | FIL Limited | Interest of Controlled Corporation | 6.87% | - Executive Directors Mr. Tse Siu Fai, Ms. Tse Yuen Man, and Mr. Mok Pui Keung all hold shares and share options in the Company[82][83][84] Share Option Schemes The Company operates a 2022 share option scheme, with the 2012 scheme expired; no new options were granted this period, but some previously granted options were exercised, resulting in an expense of HK$473,000 - The 2012 Share Option Scheme expired in March 2022, with no new share options granted thereafter[86] - No new share options were granted under the Share Option Scheme during the period ended April 30, 2025[88] - A total of 10,524,000 new shares were issued by the Company during the period due to the exercise of share options[48] - For the six months ended April 30, 2025, the Group recognized a total expense of HK$473,000 related to share options[97] Corporate Governance The Company largely complied with the Corporate Governance Code, with one deviation where the Chairman and CEO roles are combined, which the Board believes maintains strong management and power balance, and the Audit Committee reviewed the interim financial statements - The Company complied with the Corporate Governance Code, with a deviation from provision C.2.1 where the roles of Chairman and Chief Executive Officer are combined[101] - The Board believes the presence of five independent non-executive directors ensures a balance of power, and the current arrangement maintains strong management leadership[101] - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial statements[103]