Financial Performance - Revenue for the six months ended April 30, 2022, increased to HKD 2,344,692 thousand, representing a 25% growth compared to HKD 1,875,768 thousand in the same period of 2021[2] - Gross profit for the same period was HKD 641,151 thousand, up from HKD 536,347 thousand, indicating a gross margin improvement[2] - Core operating profit decreased to HKD 80,731 thousand from HKD 92,087 thousand, reflecting a decline of approximately 12.5%[2] - Profit attributable to shareholders for the period was HKD 68,905 thousand, compared to HKD 57,523 thousand in 2021, marking a 19.5% increase[2] - Basic earnings per share rose to 5.56 cents from 4.65 cents, an increase of 19.6%[2] - The company reported a total comprehensive income of HKD 36,041 thousand for the period, down from HKD 136,515 thousand in the previous year[4] - The segment profit for the six months ended April 30, 2022, was HKD 95,316, compared to HKD 98,547 for the same period in 2021, indicating a slight decrease of about 2.3%[25] - The company reported a profit before tax of HKD 81,539 for the six months ended April 30, 2022, compared to HKD 51,278 in 2021, reflecting an increase of approximately 59%[25] Assets and Liabilities - Total assets decreased to HKD 3,333,906 thousand from HKD 3,595,516 thousand, a reduction of approximately 7.3%[5] - Non-current liabilities decreased to HKD 502,356 thousand from HKD 600,538 thousand, indicating a reduction of about 16.3%[8] - Total equity amounted to HKD 2,319,468,000, reflecting a decrease of 12,973,000 compared to the previous period[9] - Retained earnings stood at HKD 1,605,575,000, showing a decrease of 61,913,000 from the previous period[9] - Trade receivables amounted to approximately HKD 876,810,000 as of April 30, 2022, up from HKD 748,805,000 as of October 31, 2021[41] - Trade payables were approximately HKD 394,490,000 as of April 30, 2022, compared to HKD 335,937,000 as of October 31, 2021[42] Cash Flow - Cash and cash equivalents decreased to HKD 1,305,796 thousand from HKD 1,479,571 thousand, a decline of approximately 11.7%[5] - Net cash used in operating activities was HKD (14,305,000), compared to HKD (101,930,000) in the previous year[12] - Net cash used in investing activities was HKD (94,099,000), significantly higher than HKD (2,477,000) in the prior year[12] - Net cash used in financing activities was HKD (81,819,000), compared to HKD (29,479,000) in the previous year[12] - Cash and cash equivalents at the end of the period were HKD 1,255,955,000, an increase from HKD 1,184,559,000 year-over-year[13] - The company reported a cash and bank balance of HKD 1.31 billion as of April 30, 2022, down from HKD 1.48 billion on October 31, 2021[63] - The net cash balance after deducting external interest-bearing borrowings was HKD 581 million, a decrease from HKD 754 million year-on-year[65] Market and Growth Strategy - The company has plans for market expansion and new product development to drive future growth[2] - The company expects to hold more than double the number of exhibitions and projects in the second half of the fiscal year compared to the first half[69] - The company is exploring opportunities in the new energy vehicle sector, having secured contracts with brands such as Ford, GAC Toyota, and Mercedes-Benz[71] - The company continues to collaborate with clients to deliver projects for postponed exhibitions, indicating a strong pipeline of future work[55] - The group is leveraging opportunities arising from the growth of the digital economy and new energy vehicles in China, winning several new clients[59] Dividends and Share Options - The company declared a final dividend of HKD 0.05 per share for the year ended October 31, 2021, totaling HKD 61,913,000, compared to HKD 30,954,000 for the previous year[34] - No interim dividend was recommended for the six months ended April 30, 2022, compared to no interim dividend in the previous year[35] - The new share option plan approved on March 25, 2022, allows for the issuance of up to 123,825,810 shares, representing approximately 10% of the company's issued share capital[77] - The total expense recognized for stock options granted by the company for the six months ended April 30, 2022, is HKD 178,000, compared to HKD 459,000 for the same period in 2021[85] Operational Highlights - The number of exhibitions activated globally decreased by 18% compared to the same period last year, but Southeast Asia saw a nearly 70% growth, offsetting some negative impacts in the Chinese market[53] - The revenue from exhibitions, projects, and brand activations increased by 33.8% to HKD 1.914 billion from HKD 1.431 billion in the previous year[53] - The group recorded a decrease in visual brand activation revenue by 3.5% to HKD 193 million from HKD 200 million in the previous year[53] - The group reported a decrease in museum and theme entertainment revenue by 7.9% to HKD 210 million from HKD 228 million in the previous year[53] - The group activated multiple brands at major exhibitions, including the Thailand Huawei Cloud and Connectivity Summit and the Asia Defense Exhibition in Kuala Lumpur[54] Governance and Compliance - The company has adhered to the corporate governance code as per the listing rules, with a noted deviation regarding the separation of the roles of Chairman and CEO, which are held by the same individual[89] - The company confirms that all directors complied with the standards set forth in the code of conduct for securities trading during the period ending April 30, 2022[90] - The audit committee has reviewed the accounting principles and practices adopted by the group, discussing internal controls and financial reporting matters, including the review of the unaudited interim financial statements[91]
PICO FAR EAST(00752) - 2022 - 中期财报