Financial Performance - Total revenue increased by 17.2% to HKD 212,200,000 for the six months ended December 31, 2022, compared to HKD 181,000,000 in 2021[7] - Gross profit rose to HKD 124,600,000, up from HKD 107,804,000 in the previous year[4] - Net loss for the period was HKD 145,230,000, compared to a loss of HKD 99,940,000 in 2021, with a loss per share of HKD 0.04[4][7] - Total revenue for the six months ended December 31, 2022, was HKD 212,231,000, an increase of 17.2% compared to HKD 180,984,000 in 2021[23] - Gross profit for the same period was HKD 124,600,000, up 15.5% from HKD 107,804,000 in 2021[23] - The company reported a loss before tax of HKD 145,230,000, compared to a loss of HKD 99,940,000 in the previous year, representing a 45% increase in losses[23] - The total comprehensive loss for the period was HKD 150,204,000, compared to HKD 95,206,000 in 2021, indicating a 57.8% increase in comprehensive losses[23] - The company reported a net loss attributable to equity holders of HKD 141,848,000 for the period, compared to a loss of HKD 95,399,000 in 2021, highlighting ongoing financial challenges[33] - The total loss attributable to equity holders of the parent for the six months ended December 31, 2022, was HKD 141,848,000, compared to HKD 95,399,000 in 2021, marking an increase of 48.6%[61] Revenue Sources - Box office revenue accounted for 86.9% of cinema operations income, totaling HKD 184,400,000, compared to HKD 160,000,000 in 2021[9] - Revenue from the Hong Kong market increased to HKD 147,100,000, while revenue from mainland China decreased to HKD 53,800,000[9] - The revenue from the Hong Kong market for the six months ended December 31, 2022, was HKD 147,119,000, a significant increase from HKD 101,123,000 in 2021, reflecting a growth of 45.5%[48] - The company reported a decrease in screen advertising service revenue to HKD 2,252,000 from HKD 4,554,000 in the previous year, a decline of 50.5%[48] Operational Changes - The group plans to expand its cinema network in mainland China with new openings in Changsha, Chengdu, and Shenzhen in 2023[12] - The group terminated operations of Emperor UA Cinemas in mainland China during the period[9] Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2022, were HKD 80,300,000, down from HKD 117,400,000 as of June 30, 2022[13] - The net cash generated from operating activities for the six months ended December 31, 2022, was HKD 30,482,000, compared to HKD 13,298,000 in the same period of 2021, representing an increase of approximately 129%[30] - The net cash used in investing activities decreased significantly to HKD (15,751,000) from HKD (47,133,000), indicating improved investment efficiency[30] - The net cash used in financing activities was HKD (50,239,000), a notable decrease from HKD 112,311,000 in the previous year, reflecting a shift in financing strategy[30] - The total cash and cash equivalents at the end of the reporting period were HKD 80,347,000, down from HKD 135,794,000 at the end of the previous year, indicating a reduction in liquidity[30] Debt and Liabilities - Total borrowings increased to HKD 578,000,000, compared to HKD 542,700,000 as of June 30, 2022[13] - The asset-liability ratio was 38.6% as of December 31, 2022, up from 30.0% as of June 30, 2022[13] - The net current liabilities increased to HKD 307,620,000 as of December 31, 2022, from HKD 258,740,000 as of June 30, 2022, indicating a deterioration in short-term financial health[33] - Current liabilities increased to HKD 438,121,000 from HKD 437,087,000, indicating a slight rise of 0.2%[26] - The total liabilities, including trade payables and other payables, increased to HKD 154,571,000 as of December 31, 2022, compared to HKD 117,160,000 as of June 30, 2022[69] Employee and Operational Costs - Employee costs totaled HKD 58,500,000 for the period, significantly higher than HKD 37,100,000 in 2021, reflecting a 57.5% increase[20] - The number of employees decreased to 598 as of December 31, 2022, down from 745 as of June 30, 2022[20] - The financial costs for the six months ended December 31, 2022, increased to HKD 39,024,000 from HKD 29,909,000 in 2021, reflecting a rise of 30.4%[58] - Non-cash expenses included in the net loss totaled HKD 105,111,000, compared to HKD 96,044,000 in the previous year, suggesting rising operational costs[33] Asset Management - Non-current assets decreased to HKD 1,367,709,000 from HKD 1,630,856,000 as of June 30, 2022, a decline of 16.1%[26] - As of December 31, 2022, the carrying value of property, plant, and equipment decreased to HKD 467,487,000 from HKD 555,973,000 as of July 1, 2022, reflecting a depreciation provision of HKD 49,931,000 and an impairment loss of HKD 28,737,000[63] - The company's depreciation expenses for property, plant, and equipment increased to HKD 49,931,000 in 2022 from HKD 39,964,000 in 2021, representing a rise of 24.6%[56] Governance and Compliance - The company has complied with all provisions of the corporate governance code as per the listing rules during the reporting period[86] - The board of directors includes independent non-executive directors, ensuring governance and oversight[94] - The interim financial statements have not been reviewed or audited by the company's auditor but were reviewed by the audit committee[89] Shareholder Information - The company did not declare any interim dividend for the period, consistent with the previous year[21] - The company did not declare any interim dividend for the year ending June 30, 2023, consistent with the previous year[60] - As of December 31, 2022, Mr. Yang holds 2,371,313,094 shares, representing 73.80% of the issued shares of the company[78] - Mr. Yang also has significant holdings in associated companies, including 2,747,611,223 shares (74.71%) in Emperor International and 4,298,630,000 shares (63.41%) in Emperor Watch and Jewellery[80] - The company has not granted any share options under its share option scheme since its adoption on December 2, 2021[85] Related Party Transactions - The group incurred related party transactions totaling HKD 140,000 for company secretary fees and HKD 143,000 for film rental expenses during the period[73]
英皇文化产业(00491) - 2023 - 中期财报