Financial Performance - Revenue for the six months ended September 30, 2021, was HK$475,436,000, a decrease of 5.0% from HK$500,729,000 in the same period of 2020[7] - Gross profit increased to HK$81,954,000, up 58.9% from HK$51,526,000 year-on-year[7] - The company reported a loss before taxation of HK$16,449,000 compared to a profit of HK$13,378,000 in the previous year[7] - Total comprehensive expense for the period was HK$23,782,000, compared to a comprehensive income of HK$11,041,000 in the same period last year[9] - The loss attributable to owners of the company was HK$11,531,000, while the total loss for the period was HK$21,776,000[9] - Basic and diluted loss per share was HK$0.02, compared to earnings of HK$0.04 per share in the previous year[9] - Administrative and other expenses increased to HK$58,372,000 from HK$51,718,000, reflecting a rise of 12.8%[7] - Other income and gains decreased to HK$10,120,000 from HK$26,948,000, a decline of 62.5%[7] Assets and Liabilities - As of September 30, 2021, total assets amounted to HK$1,041,055,000, an increase from HK$1,005,965,000 as of March 31, 2021, reflecting a growth of approximately 3.5%[11] - Current assets increased to HK$560,442,000 from HK$460,793,000, representing a rise of about 21.6%[11] - Net current assets improved to HK$224,240,000, up from HK$131,836,000, indicating a significant increase of approximately 70%[11] - Total equity reached HK$492,387,000, compared to HK$443,809,000, marking an increase of around 10.9%[13] - Non-current liabilities totaled HK$212,266,000, up from HK$193,199,000, indicating an increase of about 9.9%[13] - The company’s goodwill and other intangible assets decreased significantly, with goodwill dropping to zero from HK$8,242,000[11] Cash Flow - For the six months ended September 30, 2021, net cash used in operating activities was HK$38,829,000, compared to a cash inflow of HK$35,445,000 in the same period of 2020[19] - Net cash from investing activities was HK$32,077,000, a significant recovery from a cash outflow of HK$39,220,000 in the prior year[19] - New bank borrowings raised amounted to HK$72,360,000, while repayments to bank and other borrowings totaled HK$65,254,000, resulting in a net cash inflow from financing activities of HK$51,695,000[19] - The total cash and cash equivalents at the end of the period reached HK$116,531,000, up from HK$41,502,000 at the end of the same period last year[19] - The company reported a net increase in cash and cash equivalents of HK$44,943,000, compared to an increase of HK$9,764,000 in the previous year[19] Revenue Segmentation - Construction revenue from foundation and other civil works was HK$337.0 million, down 8.5% from HK$368.4 million year-on-year[60] - Revenue from tunneling works was HK$54.5 million, a decrease of 12.4% compared to HK$62.2 million in the previous year[60] - Sales of aquatic products, including fish, crabs, and shrimps, totaled HK$80.4 million, with a notable decline in sales of fish from HK$44.0 million to HK$34.1 million[60] - Revenue from research and development services was HK$3.6 million, with no revenue reported in the previous year[60] - The total revenue from contracts with customers for the six months ended September 30, 2021, was HK$475.4 million, with HK$83.9 million recognized at a point in time and HK$391.5 million recognized over time[60] Impairment and Expenses - Impairment losses of non-current assets amounted to HK$9,789,000, indicating a significant write-down[7] - Research and development expenses recognized as an expense amounted to HK$10,222,000, up 44.5% from HK$7,052,000 in the prior period[100] - Employee benefits expenses totaled HK$100,889,000, a decrease of 4.5% from HK$105,529,000 in the previous year[100] - Total impairment losses on non-current assets were HK$9,789,000, with no losses reported in the same period last year[100] Shareholder Information - The weighted average number of ordinary shares for the purpose of basic loss earnings per share remained constant at 500,000,000 shares for both periods[110] - No dividends were paid or proposed during the six months ended September 30, 2021, consistent with the previous year[113] Strategic Focus - The company plans to focus on market expansion and new product development to improve future performance[7] - The budgeted growth rates for revenue have been revised to 7-8% due to the impact of the COVID-19 pandemic[128] Geographic Operations - The company operates in Hong Kong, the PRC, and the Philippines, with revenue reported based on the location of operations[86] - Revenue from external customers in Hong Kong was HK$385,094,000, down 8.7% from HK$421,870,000 year-on-year[88] - Revenue from the PRC was HK$83,973,000, an increase of 19.7% compared to HK$70,139,000 in the previous year[88] Inventory and Biological Assets - As of September 30, 2021, the Group's live fish inventory decreased to 44,663 kg from 148,064 kg as of March 31, 2021, representing a decline of approximately 69.9%[139] - The breeding stock of live fish also saw a significant reduction, dropping to 12,800 kg from 60,405 kg, a decrease of about 78.8%[139] - The total biological assets at the end of the financial period were valued at HK$4,901,000, down from HK$11,406,000, indicating a decrease of about 57.1%[144] Financing and Borrowings - Total bank borrowings decreased from HK$134,868,000 as of 31 March 2021 to HK$121,549,000 as of 30 September 2021, a decline of about 9.8%[175] - Other borrowings increased significantly from HK$18,963,000 as of 31 March 2021 to HK$30,719,000 as of 30 September 2021, an increase of approximately 61.9%[175] - The Group obtained new borrowings of approximately HK$62,562,000 during the six months ended September 30, 2021, compared to HK$87,597,000 for the same period in 2021[181] Equity Transactions - The Group's equity interest in Shenzhen Huahong was diluted from 100% to 70% following an additional capital contribution of approximately HK$72,360,000 (equivalent to RMB60,000,000) by an independent investor[191] - On August 31, 2021, the Group disposed of 70% equity interest in Shenzhen Huahai for a cash consideration of approximately HK$1 (equivalent to RMB1), resulting in the loss of control over Shenzhen Huahai[195]
义合控股(01662) - 2022 - 中期财报