Financial Performance - CEC International Holdings Limited reported revenue of HKD 971,637,000 for the six months ended October 31, 2021, a decrease of 10.3% from HKD 1,083,184,000 in the same period of 2020[6]. - The gross profit for the same period was HKD 336,918,000, representing an increase of 8.7% compared to HKD 310,111,000 in the previous year[6]. - Operating profit decreased to HKD 30,658,000, down 9.4% from HKD 33,821,000 year-on-year[6]. - Net profit attributable to equity holders of the company was HKD 18,798,000, an increase of 25.5% from HKD 14,993,000 in the prior period[6]. - Basic and diluted earnings per share increased to HKD 2.82 cents, compared to HKD 2.25 cents in the same period last year[6]. - Total comprehensive income for the period was HKD 21,932,000, down from HKD 28,539,000 in the previous year[8]. - The company reported a net finance cost of HKD 5,484,000, an improvement from HKD 9,970,000 in the same period of 2020[6]. - Other income for the period was HKD 1,201,000, compared to HKD 41,163,000 in the previous year, indicating a significant decrease[6]. - The company experienced a foreign exchange gain of HKD 3,193,000 during the period, compared to a gain of HKD 13,581,000 in the previous year[8]. Assets and Liabilities - Total assets as of October 31, 2021, amounted to HKD 956,226,000, a decrease from HKD 983,418,000 as of April 30, 2021[10]. - Total equity increased to HKD 484,304,000 from HKD 468,368,000, reflecting a growth of approximately 3%[10]. - Current liabilities totaled HKD 369,374,000, down from HKD 423,899,000, indicating a reduction of about 13%[10]. - Non-current liabilities rose to HKD 102,548,000, compared to HKD 91,151,000, representing an increase of approximately 12%[10]. - The company’s total liabilities decreased to HKD 471,922,000 from HKD 515,050,000, indicating a reduction of about 8%[10]. - The total bank financing as of October 31, 2021, was HKD 400,221,000, down from HKD 503,300,000 as of April 30, 2021, indicating a reduction of 20.5%[18]. - The group's total borrowings amounted to HKD 95,232,000, a decrease of 26.5% from HKD 129,760,000 as of April 30, 2021[16]. Cash Flow - As of October 31, 2021, the group's cash generated from operations was HKD 115,670,000, a decrease of 45.5% compared to HKD 213,249,000 for the same period in 2020[14]. - The net cash used in investing activities was HKD (6,665,000), compared to HKD (6,045,000) for the same period in 2020, reflecting a 10.2% increase in cash outflow[14]. - The group’s net cash from financing activities was HKD (105,457,000), a significant decrease from HKD (219,188,000) in the previous period, indicating improved cash management[14]. - The group’s cash flow forecast covers at least 12 months from October 31, 2021, relying on operational cash flow and available bank financing[19]. Business Segments - Retail business revenue for the six months ended October 31, 2021, was HKD 926,094, a decrease of 11.2% from HKD 1,043,044 in the same period of 2020[27]. - Electronic components manufacturing reported a loss of HKD 6,608 for the six months ended October 31, 2021, compared to a loss of HKD 54,278 in the previous year[27]. - The group has three reporting segments: retail business, electronic components manufacturing, and investment properties, with performance evaluated based on internal reports[26]. - Revenue from the electronic components manufacturing business increased by 14.2% to HKD 45,197,000, with a gross profit margin of 11.2% compared to a gross loss margin of -56.3% in 2020[50]. Market and Operational Strategy - CEC International Holdings Limited continues to focus on enhancing operational efficiency and exploring new market opportunities for future growth[5]. - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[11]. - The management anticipates ongoing volatility in the retail market due to global supply chain disruptions, with a focus on improving operational capabilities in the short term[64]. - The company plans to leverage its supplier network across over 60 countries to mitigate supply chain risks and ensure stable product availability[64]. Corporate Governance - The company has adopted the corporate governance code as per the listing rules, with some deviations noted regarding the roles of the chairman and CEO[75]. - Following the resignation of independent non-executive director Mr. Qu on September 29, 2021, the company has only two independent non-executive directors, which is below the minimum requirement[77]. - The audit committee currently consists of two independent non-executive directors, with regular meetings held at least twice a year[78]. - The company has confirmed compliance with the standard code of conduct for securities transactions by all directors during the six months ending October 31, 2021[81]. Shareholder Information - The company has a significant shareholder, Lin Guozhong, holding 66.39% of the shares, which indicates a strong control over the company[65]. - As of October 31, 2021, major shareholder Ms. Luo Jingyi holds a total of 472,250,848 shares, representing 70.89% of the issued share capital[71]. - Ka Yan China Investments Limited and its subsidiary Ka Yan China Development (Holding) Company Limited collectively hold 442,295,660 shares, accounting for 66.39% of the issued share capital[72].
CEC INT'L HOLD(00759) - 2022 - 中期财报