Revenue Performance - For the six months ended December 31, 2021, total revenue decreased to approximately HK$66.90 million, down 51.19% from HK$137.29 million in the prior period[10]. - Revenue from the cultural and entertainment business decreased by approximately HK$73.48 million, or approximately 65.97%, from approximately HK$111.38 million in the prior period to approximately HK$37.90 million in the reporting period[19]. - The exhibitions and events business recorded no revenue for both the reporting period and the prior period, representing 0% of total revenue[12]. - Revenue decreased by approximately HK$70.39 million, or approximately 51.27%, from approximately HK$137.29 million for the Prior Period to approximately HK$66.90 million for the Reporting Period[39]. - Revenue from the financing business increased by approximately HK$3.09 million, or approximately 11.93%, from approximately HK$25.91 million for the Prior Period to approximately HK$29.00 million for the Reporting Period, representing 43.35% of total revenue[28]. - Revenue from brand management decreased from HK$5.04 million in 2020 to HK$3.15 million in 2021[22]. - Revenue from promotion and consulting services decreased from HK$49.07 million in 2020 to HK$10.22 million in 2021[22]. - Revenue from trading of goods decreased from HK$57.27 million in 2020 to HK$24.53 million in 2021[22]. - Revenue for the six months ended December 31, 2021, was HK$66,897,000, a decrease of 51.2% compared to HK$137,288,000 for the same period in 2020[132]. - Revenue from external customers decreased to HK$66,897,000 in 2021 from HK$137,288,000 in 2020, reflecting a significant decline in business activity[164]. Financial Losses - The segment loss from the cultural and entertainment business was approximately HK$29.95 million in the reporting period, compared to a profit of HK$29.70 million in the prior period[10]. - The Group's total segment loss for the reporting period was approximately HK$3.85 million, compared to a profit of HK$50.48 million in the prior period[10]. - The operating loss for the Reporting Period was approximately HK$13.36 million, representing an increase of approximately 135.12% compared to the operating profit of approximately HK$38.04 million in the Prior Period[35]. - Net loss for the Reporting Period was approximately HK$21.60 million, an increase of approximately 264.13% compared to the net profit of approximately HK$13.16 million in the Prior Period[35]. - The Group's loss for the period increased by approximately HK$34.76 million or approximately 264.13%, resulting in a loss of approximately HK$21.60 million for the reporting period[55]. - The company reported a net loss for the period of HK$21,597,000, compared to a profit of HK$13,164,000 in the prior year, marking a significant decline[132]. - For the six months ended December 31, 2021, the loss attributable to owners of the Company was HK$21,597,000, compared to a profit of HK$17,789,000 for the same period in 2020[182]. Impairment and Expenses - An impairment loss of approximately HK$34.12 million was recorded under the Cheer Sino Group cash-generating unit due to the impact of COVID-19[14]. - The Group recognized goodwill impairment loss of approximately HK$34.12 million and intangible asset impairment loss of approximately HK$0.37 million due to economic uncertainty risks during the reporting period[46]. - Impairment loss on goodwill was HK$34,117,000, indicating a significant write-down in asset value[132]. - Administrative expenses decreased by approximately HK$10.72 million, or approximately 42.39%, from approximately HK$25.29 million for the Prior Period to approximately HK$14.57 million for the Reporting Period[44]. - Selling expenses decreased by approximately HK$7.41 million, or approximately 57.40%, from approximately HK$12.91 million for the Prior Period to approximately HK$5.50 million for the Reporting Period[44]. - Employee benefit expenses totaled HK$9,413,000 for the six months ended December 31, 2021, compared to HK$17,974,000 in 2020, indicating cost-cutting measures[168]. Cash and Assets Management - The Group maintained cash and cash equivalents of approximately HK$90.33 million as of December 31, 2021, compared to approximately HK$69.06 million as of June 30, 2021[72]. - The current ratio improved to approximately 9.29 times as of December 31, 2021, compared to approximately 5.95 times as of June 30, 2021[66]. - The gearing ratio decreased to 4.84% as of December 31, 2021, from 7.57% as of June 30, 2021[67]. - As of December 31, 2021, the Group's borrowings amounted to approximately HK$40.48 million, a decrease from approximately HK$66.77 million as of June 30, 2021[77]. - Cash and cash equivalents increased to HK$90,332,000 from HK$69,059,000, reflecting a growth of approximately 30.83%[135]. - Net current assets increased to HK$507,104,000 from HK$473,814,000, representing a growth of about 7.02%[136]. - The company's net assets stood at HK$771,405,000 as of December 31, 2021, compared to HK$782,917,000 at the end of June 2021, a decline of about 1.64%[136]. - The total equity of the company was HK$771,405,000, unchanged in share capital at HK$3,712,000, while reserves decreased from HK$779,205,000 to HK$767,693,000[136]. Corporate Governance and Structure - The company has adopted the Corporate Governance Code and complied with all applicable code provisions during the reporting period, except for the separation of the roles of chairman and CEO[116]. - The chairman and CEO roles are held by Mr. Deng Zhonglin since May 31, 2021, to facilitate business strategy execution[120]. - The company has a balanced board structure with two executive directors, one non-executive director, and three independent non-executive directors to ensure proper checks and supervision[120]. - The company is considering appointing a suitable candidate for the CEO position in the future based on business needs[120]. - The Audit Committee reviewed the financial reporting process and internal control procedures, ensuring compliance with the CG Code and Listing Rules[128]. Market and Operational Insights - The overall performance of the cultural and entertainment business was significantly affected by the pandemic preventive measures and social distancing policies imposed by the PRC government[13]. - The Group intends to shift resources from the exhibitions and events business to other segments until pandemic measures are relaxed[11]. - The principal activities of the Company include the organization and sponsorship of exhibitions and events, and the operation of a cultural and entertainment comprehensive services platform[142]. - The Group's revenue and results are segmented into exhibitions and events, cultural and entertainment services, and financing services[156].
诺发集团(01360) - 2022 - 中期财报