Financial Performance - Revenue for the six months ended June 30, 2022, was HK$16,737,000, a decrease of 8.5% compared to HK$18,293,000 for the same period in 2021[13] - Gross profit increased to HK$7,689,000, up 21.2% from HK$6,343,000 in the previous year[13] - Loss before income tax for the period was HK$14,870,000, compared to a loss of HK$1,290,000 in the same period last year, indicating a significant decline in performance[13] - Total comprehensive income for the period was a loss of HK$14,252,000, compared to a loss of HK$545,000 in the prior year[15] - Basic and diluted loss per share attributable to the owners of the Company was HK(4.55) cents, compared to HK(0.10) cents in the previous year[15] - Other income for the period was HK$3,002,000, slightly down from HK$3,184,000 in the previous year[13] - Administrative expenses increased to HK$17,900,000, up from HK$14,265,000 in the same period last year, reflecting a rise of 25.5%[13] - Fair value loss on financial assets was HK$6,028,000, compared to a gain of HK$5,198,000 in the previous year, indicating a negative shift in asset valuation[13] - The Company reported a total loss attributable to owners of HK$14,848,000, compared to a loss of HK$337,000 in the previous year[15] Assets and Liabilities - As of June 30, 2022, total assets less current liabilities amounted to HK$308,649,000, a decrease of 5% from HK$324,913,000 as of December 31, 2021[21] - Net current liabilities increased to HK$51,441,000 from HK$38,117,000, reflecting a deterioration in liquidity position[21] - The company's net assets decreased to HK$294,028,000, down 4.6% from HK$308,280,000 at the end of 2021[21] - Cash and bank balances dropped significantly to HK$15,556,000, a decline of 43.7% from HK$27,596,000[21] - Trade payables decreased to HK$193,000 from HK$259,000, indicating improved management of payables[21] - Total equity attributable to the owners of the Company was HK$293,703,000, down from HK$307,933,000, reflecting a loss for the period[21] Cash Flow - For the six months ended June 30, 2022, the net cash used in operating activities was HK$5,403,000, compared to HK$51,000 in the same period of 2021[30] - The net cash used in investing activities decreased significantly to HK$39,000 from HK$2,668,000 year-on-year[30] - The net cash used in financing activities was HK$6,598,000, slightly down from HK$6,949,000 in the previous year[30] - Cash and cash equivalents decreased to HK$15,556,000 as of June 30, 2022, from HK$16,657,000 in the previous year[30] Segment Performance - Segment revenue for Hair Styling decreased to HK$6,650,000 in 2022 from HK$8,264,000 in 2021, a decline of 19.5%[49] - Hospitality Services segment revenue increased to HK$6,562,000 in 2022 from HK$5,921,000 in 2021, a growth of 10.8%[49] - Property Investments segment revenue decreased to HK$1,983,000 in 2022 from HK$2,141,000 in 2021, a decline of 7.4%[49] - Securities Investments segment revenue remained relatively stable at HK$1,540,000 in 2022 compared to HK$1,535,000 in 2021[49] Economic and Market Conditions - Hong Kong's GDP contracted by 3.9% and 1.3% in Q1 and Q2 2022 respectively, due to strict COVID-19 measures impacting economic activities[106] - The Group's operations faced challenges due to the COVID-19 pandemic in Hong Kong and Macau, affecting overall performance in 1H 2022[106] - The Group anticipates a positive market sentiment in the retail sector for the second half of 2022, contingent on no further serious COVID-19 outbreaks[114] - The Group maintains a cautious outlook on economic recovery in Hong Kong and Macau due to ongoing COVID-19 infections and potential reintroduction of restrictions[161][164] Strategic Initiatives - The Group aims to expand its business operations by collaborating with local renowned architects and interior designers to explore new projects as the economy revives[132] - The Group plans to adjust its business model in response to the evolving post-COVID-19 consumer behavior and market conditions[162][164] - The Group's new e-platform is in the final stages of fine-tuning, aimed at enhancing online shopping capabilities[119] Corporate Governance - The company complied with the Code on Corporate Governance Practices during the review period, with some deviations noted[189] - The Audit Committee reviewed the accounting principles and practices adopted by the Group and discussed risk management and internal controls[193] - All directors confirmed compliance with the Model Code for securities transactions during the six months ended June 30, 2022[194]
世纪建业(00079) - 2022 - 中期财报