Financial Performance - The group's revenue decreased by 8% to HKD 4,781,051,000 for the six months ended June 30, 2022, primarily due to currency depreciation and a decrease in the fair value of investment securities[6]. - Net profit after tax fell to HKD 26,699,000, attributed to the depreciation of foreign currencies against the Hong Kong dollar[6]. - Revenue for the six months ended June 30, 2022, was HKD 4,781,051 thousand, a decrease from HKD 5,183,858 thousand in 2021, representing a decline of approximately 7.8%[24]. - Gross profit for the same period was HKD 309,827 thousand, slightly down from HKD 310,353 thousand in 2021, indicating a marginal decrease of 0.2%[24]. - The net profit for the period was HKD 26,699 thousand, a significant drop from HKD 68,002 thousand in 2021, reflecting a decrease of approximately 60.7%[24]. - Basic loss per share was HKD (3.40), compared to earnings of HKD 8.77 per share in the previous year, marking a substantial decline[24]. - The company reported a loss of HKD 9,460,000 for the six months ended June 30, 2022, compared to a profit of HKD 24,371,000 for the same period in 2021, indicating a significant decline in profitability[78]. - The financial expenses for the period amounted to HKD 26,601,000, contributing to the overall loss reported[67]. Revenue Breakdown - Revenue from information technology products amounted to HKD 4,638,386,000, while hotel operations contributed HKD 30,676,000[59]. - The company achieved a total of HKD 4,688,219,000 in customer contract revenue, which includes HKD 30,676,000 from hotel operations[59]. - The revenue from the Hong Kong market was HKD 1,078,171,000, down from HKD 1,241,296,000 in the previous period[59]. - The company’s total revenue from Thailand was HKD 3,579,372,000, a slight decrease from HKD 3,810,647,000[59]. Investment and Valuation - The real estate investment business recorded a total valuation gain of HKD 59,183,000, contrasting with a valuation loss of HKD 53,715,000 in the previous year[14]. - Total revenue from the real estate investment business decreased by 6% to HKD 123,508,000, mainly due to the depreciation of the Japanese yen against the Hong Kong dollar[14]. - The group's securities investments incurred a loss of HKD 80,527,000, compared to a profit of HKD 33,771,000 in the same period last year[15]. - The company reported a loss in equity instruments measured at fair value through profit or loss of HKD (86,237) thousand, compared to a gain of HKD 32,090 thousand in the previous year[24]. - The fair value of investment properties decreased by HKD 5,740,000 during the period, while the fair value of investment properties in Japan increased by HKD 64,923,000[83]. Cash Flow and Liquidity - The net cash generated from operating activities for the six months ended June 30, 2022, was HKD 175,163,000, compared to a net cash outflow of HKD 2,591,000 in the same period last year[42]. - The company reported a net cash outflow from investing activities of HKD 23,344,000, a significant decrease from a net inflow of HKD 3,338,000 in the previous year[42]. - The financing activities resulted in a net cash outflow of HKD 256,233,000, contrasting with a net inflow of HKD 83,069,000 in the prior year[42]. - The total cash and cash equivalents as of June 30, 2022, amounted to HKD 816,386,000, down from HKD 920,090,000 at the end of the previous year[42]. - The company’s cash and cash equivalents decreased to HKD 816,386 thousand from HKD 976,510 thousand, a decline of approximately 16.4%[31]. Assets and Liabilities - Total assets as of June 30, 2022, were HKD 4,930,527 thousand, down from HKD 5,360,676 thousand at the end of 2021, a decrease of about 8.0%[31]. - Current liabilities decreased to HKD 3,580,800 thousand from HKD 4,015,293 thousand, a reduction of approximately 10.8%[31]. - Non-current liabilities were HKD 1,253,674 thousand, down from HKD 1,723,767 thousand, indicating a decrease of about 27.2%[33]. - The group reported a net cash deficit of HKD 2,365,603,000 as of June 30, 2022, compared to HKD 2,842,027,000 as of December 31, 2021[125]. - The debt-to-equity ratio as of June 30, 2022, was 92%, down from 107% as of December 31, 2021[125]. Corporate Governance and Compliance - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules throughout the reporting period[163]. - The audit committee, composed entirely of independent non-executive directors, reviewed the interim report for the six months ending June 30, 2022[165]. - The company maintains a code of conduct for directors that meets or exceeds the standards set by the listing rules[164]. Shareholder Information - Gold Sceptre Limited holds 140,360,000 shares of the company, while Kelderman Limited, Valley Tiger Limited, and Swan River Limited each hold 12,760,000 shares[136]. - Lin Jiafeng and Lin Jiaming collectively hold 40.50% and 39.50% of the issued share capital of Summertown Limited, which owns all issued shares of the aforementioned companies[136]. - Lin Jiafeng holds 241,875 personal shares and 214,510,470 company shares in SiS Distribution (Thailand) Public Company Limited, representing approximately 60.84% of the issued share capital[146]. - The company has unexercised options for 400,000 shares each for Lin Jiafeng and Lin Jiaming at an exercise price of HKD 2.36, expiring on June 30, 2023[147]. - Major shareholders include Yang Shengcong and Lin Meihua, each holding 5.26% of the issued share capital, totaling 14,614,000 shares[158].
SIS INT'L(00529) - 2022 - 中期财报