COVID-19 Impact and Recovery - The Group successfully minimized the impact of COVID-19 by actively promoting delayed projects and tracking the resumption of work among customers and suppliers[6]. Market Opportunities and Development - The Group leveraged its accumulated customer resources and leading technology to seize development opportunities in the information-based power grid sector during the Reporting Period[7]. - The acceleration of information-based power grid development and smart city construction is expected to bring unprecedented opportunities for the Group[11]. - The State Grid Corporation of China aims for certain areas to reach internationally leading levels by 2025, enhancing the Group's market prospects[15]. - The ongoing marketisation of electric power transactions and the shift towards intelligence and IoT will provide more development opportunities for the Group[16]. - The smart city market is expanding due to the application of 5G technology and increased awareness of smart city management's importance during the COVID-19 epidemic[17]. - The Group's industries are booming, supported by China's New Infrastructure policy and proactive fiscal policies[18]. - The Group's strong technical teams and solid customer resources position it well for future achievements in power information technology and smart city IoT[11]. - The Group is well-positioned to benefit from the favorable macroeconomic policies that support smart city construction[9]. - The Group's strategic focus aligns with the broader market trends in energy internet and new infrastructure development, enhancing its growth potential[20]. Financial Performance - The Group's revenue for the six months ended September 30, 2020, increased by approximately RMB 15,770,000, driven by a RMB 2,913,000 increase in software and solutions sales and a RMB 12,000,000 increase in technical services revenue[29]. - Revenue from software and solutions reached RMB 18,887,000, while technical services revenue was RMB 59,459,000, contributing to a total revenue of RMB 107,102,000 for the reporting period[28]. - The overall gross profit margin decreased from approximately 33.6% to 23.3%, attributed to increased outsourced labor costs and rising raw material and logistics costs[34]. - The Group's technical services revenue growth was supported by intensified R&D efforts and market expansion, enhancing the variety and scope of services offered to customers[30]. - The Group has made significant progress in smart city IoT projects, including initiatives in Beijing, Tianjin, and Jinan, indicating successful project implementation during the reporting period[24]. - The Group's software and solutions segment experienced a year-on-year revenue increase of approximately 18.2%[29]. - The Group aims to capture industry opportunities and promote sustainable development while adhering to a philosophy of seeking progress amidst stable performance[25]. Cash Flow and Financial Management - The Group is focused on maintaining stable cash flow amidst macroeconomic challenges and has implemented measures to enhance cash flow management and customer repayment follow-up[25]. - As of 30 September 2020, trade receivables and contract assets amounted to approximately RMB 171,966,000, an increase from RMB 149,550,000 as of 31 March 2020, driven by revenue growth[39]. - The carrying amount of inventories and other contract costs decreased to approximately RMB 8,330,000 as of 30 September 2020, down from RMB 9,783,000 as of 31 March 2020, due to better management of pipeline projects[40]. - R&D expenditure charged to profit or loss accounts was approximately RMB 2,320,000 for the six months ended 30 September 2020, compared to RMB 925,000 for the same period in 2019[44]. - The Group's net current assets as of 30 September 2020 were approximately RMB 152,797,000, an increase from RMB 144,587,000 as of 31 March 2020[46]. - The current ratio as of 30 September 2020 was 2.60 times, down from 3.12 times as of 31 March 2020[46]. - The Group's total employee benefit expenses amounted to approximately RMB 15,859,000 for the six months ended 30 September 2020, compared to approximately RMB 15,100,000 for the same period in 2019[52]. - The Group's cash and bank balances increased to approximately RMB 43,191,000 as of 30 September 2020, up from RMB 31,802,000 as of 31 March 2020[46]. - The Group's short-term bank loans amounted to approximately RMB 27,800,000 as of 30 September 2020, representing 14.2% of net assets[46]. Corporate Governance and Shareholding - The Company complied with all code provisions of the Corporate Governance Code throughout the Reporting Period[58]. - The Company has adopted the Model Code for Securities Transactions by Directors and all Directors confirmed compliance during the Reporting Period[58]. - As of September 30, 2020, Wang Dongbin and Li Kangying each hold 60,000,000 shares through controlled corporations, representing 12.07% of the total shareholding[66]. - Wu Hongyuan holds 1,200,000 shares, accounting for approximately 0.237% of the total shareholding[68]. - Ng Kong Fat and Han Bin each hold 500,000 shares, representing approximately 0.099% of the total shareholding[68]. - During the Reporting Period, none of the Directors or substantial shareholders had interests in businesses that significantly compete with the Group[70]. - As of September 30, 2020, Xiong Weiqin, An Ning, and Zhang Jianhua each hold 61,000,000 shares, representing approximately 12.07% of the shareholding[74]. - Smart East, Main Wealth, and Union Sino each hold 60,000,000 shares, representing approximately 11.87% of the shareholding[74]. - Long Eagle, controlled by Cao Wei, holds 60,000,000 shares, representing approximately 11.87% of the shareholding[78]. - Chance Talent holds 45,072,000 shares, representing approximately 8.92% of the shareholding[78]. - Great Attain International Limited holds 124,191,177 shares, representing approximately 24.58% of the shareholding[78]. - During the six months ended September 30, 2020, the Company did not purchase, sell, or redeem any of its listed securities[82]. - The Company has not been notified of any other interests or short positions in shares or underlying shares as of September 30, 2020[81]. Share Option and Award Schemes - The Company has been allowed to grant further share options to subscribe for up to an aggregate of 50,392,717 Shares, representing approximately 10% of the issued Shares[97]. - The maximum number of Shares which may be allotted and issued upon exercise of all outstanding options shall not exceed 30% of the issued share capital of the Company from time to time[96]. - The total number of Shares issued to each participant in any 12-month period shall not exceed 1% of the issued share capital of the Company[98]. - The Share Option Scheme is valid for a period of ten years starting from February 5, 2018, with approximately eight years remaining as of the report date[101]. - A total of 26,700,000 share options were outstanding as of September 30, 2020, with an exercise price of HKD 0.80[105]. - 20% and 30% of the share options granted vested on June 30, 2019, and June 30, 2020, respectively, with 50% set to vest on June 30, 2021[109]. - The Share Award Scheme was adopted on July 27, 2018, and is effective for ten years, allowing grants up to 3% of the issued share capital[112]. - The maximum number of awarded shares to a participant under the Share Award Scheme shall not exceed 1% of the issued share capital[112]. - The exercise price for share options must be at least the higher of the closing price on the grant date or the average closing price for the five business days preceding the grant[104]. - All options granted before the end of the Share Option Scheme period remain valid and exercisable according to the scheme's terms[101]. - The Share Option Scheme allows for options to be accepted within 21 days from the grant offer date[104]. - The total number of share options held by executive directors and other employees is subject to performance conditions for vesting[110]. - The Share Award Scheme aims to recognize contributions and retain eligible participants for the Group's growth[111]. Overall Financial Summary - As of September 30, 2020, OneForce Holdings Limited reported revenue of RMB 107,102,000, an increase of 17.3% compared to RMB 91,332,000 for the same period in 2019[130]. - The gross profit for the six months ended September 30, 2020, was RMB 24,972,000, a decrease of 18.5% from RMB 30,733,000 in the previous year[130]. - Profit from operations increased to RMB 4,101,000, up 66.5% from RMB 2,464,000 in the same period of 2019[130]. - Profit for the period attributable to equity shareholders was RMB 3,133,000, representing a 72.6% increase compared to RMB 1,814,000 in 2019[130]. - Basic earnings per share for the period was 0.63 RMB cents, compared to 0.36 RMB cents in the previous year, reflecting a 75% increase[130]. - Total comprehensive income for the period attributable to equity shareholders was RMB 2,556,000, down 42.3% from RMB 4,429,000 in the same period of 2019[133]. - The company reported an impairment loss on trade receivables and contract assets of RMB 1,974,000, a decrease from RMB 4,642,000 in the previous year[130]. - Other income for the period was RMB 29,000, significantly lower than RMB 164,000 in the same period of 2019[130]. - Selling expenses increased to RMB 3,762,000 from RMB 3,156,000, reflecting a rise of 19.1% year-over-year[130]. - Administrative and other operating expenses decreased to RMB 15,164,000 from RMB 20,635,000, a reduction of 26.5% compared to the previous year[130]. - As of September 30, 2020, total assets amounted to RMB 248,201,000, an increase of 16.5% from RMB 212,939,000 as of March 31, 2020[136]. - Current liabilities increased to RMB 95,404,000 from RMB 68,352,000, reflecting a rise of 39.6%[136]. - Net assets reached RMB 196,330,000, up from RMB 193,538,000, indicating a growth of 1.4%[138]. - Trade receivables rose to RMB 120,110,000, an increase of 4.0% from RMB 114,665,000[136]. - Contract assets significantly increased to RMB 51,856,000, up 48.6% from RMB 34,885,000[136]. - Cash and bank balances improved to RMB 43,191,000, a 35.8% increase from RMB 31,802,000[136]. - The company reported a profit of RMB 3,133,000 for the six months ended September 30, 2020[145]. - Share capital slightly decreased to RMB 4,130,000 from RMB 4,141,000[138]. - Total equity increased to RMB 196,330,000, reflecting a rise of 1.4% compared to RMB 193,538,000[138]. - The company’s intangible assets decreased to RMB 31,135,000 from RMB 36,843,000, a decline of 15.6%[136]. - Net cash used in operating activities for the six months ended September 30, 2020, was RMB (11,252,000), a decrease from RMB (16,841,000) in the same period of 2019, representing a 33.6% improvement[152]. - Net cash used in investing activities was RMB (957,000) for the six months ended September 30, 2020, compared to RMB (5,596,000) in the same period of 2019, indicating a 82.9% reduction[152]. - Net cash generated from financing activities was RMB 14,150,000 for the six months ended September 30, 2020, compared to a net cash outflow of RMB (149,000) in the same period of 2019[152]. - Cash and cash equivalents at the end of the period increased to RMB 32,977,000 from RMB 19,371,000 at the end of the same period in 2019, reflecting a 70.6% increase[152]. - The company reported a net increase in cash and cash equivalents of RMB 1,941,000 for the six months ended September 30, 2020, contrasting with a net decrease of RMB (22,586,000) in the same period of 2019[152]. - The company incurred payments for the purchase of property, plant, and equipment amounting to RMB (5,000) and for self-developed intangible assets of RMB (952,000) during the reporting period[152]. - The company’s cash flows from financing activities included proceeds from new borrowings of RMB 18,800,000 and repayments of borrowings totaling RMB (4,000,000)[152]. - The effect of foreign exchange rates changes resulted in a decrease of RMB (657,000) in cash and cash equivalents during the reporting period[152]. - The company’s cash and cash equivalents at the beginning of the period were RMB 31,693,000, down from RMB 39,559,000 at the beginning of the same period in 2019[152]. - The interim financial report was authorized for issue on November 25, 2020, and is prepared in accordance with International Accounting Standard 34[159]. Segment Performance - The Group operates through three reportable segments: Application solutions, Supporting services, and Products, with no inter-segment sales reported for the six months ended September 30, 2020[175]. - The Group's technical services segment focuses on providing maintenance services for software systems sold, enhancing customer support and satisfaction[175]. - The Group's principal activities include the design, implementation, enhancement, and upgrades of software systems for power grid and distribution companies in the PRC[168]. - The Group's revenue from contracts with customers is disaggregated by major service lines, indicating a diversified revenue stream[171]. - Revenue from external customers for the six months ended September 30, 2020, totaled RMB 107,102,000, with a breakdown of RMB 18,887,000 from application solutions and RMB 59,459,000 from supporting services[181]. - The reportable segment gross profit for the same period was RMB 24,972,000, compared to RMB 30,733,000 for the six months ended September 30, 2019, indicating a decrease of approximately 18.5%[190]. - Other income for the six months ended September 30, 2020, was RMB 29,000, down from RMB 164,000 in the same period of 2019, reflecting a decline of about 82.9%[192]. - Net finance costs for the six months ended September 30, 2020, were RMB (211,000), compared to a net income of RMB 172,000 in the previous year, showing a significant shift[190]. - Selling expenses increased to RMB (3,762,000) for the six months ended September 30, 2020, compared to RMB (3,156,000) in the same period of 2019, representing an increase of approximately 19.1%[190]. - Operating expenses for the six months ended September 30, 2020, were RMB (15,164,000), a decrease from RMB (20,635,000) in the same period of 2019, indicating a reduction of about 26.7%[190]. - The consolidated profit before taxation for the six months ended September 30, 2020, was RMB 3,912,000, an increase of approximately 48.4% from RMB 2,637,000 in the same period of 2019[190]. - Staff costs for the six months ended September 30, 2020, amounted to RMB 15,112,000, up from RMB 12,031,000 in the previous year, reflecting an increase of approximately 25.8%[195]. - The company operates entirely within the PRC, with all non-current assets allocated to operations located in the PRC[190]. - The VAT refund for the six months ended September 30, 2020, was not applicable, while other income included RMB 29,000, down from RMB 164,000 in the previous year[192].
元力控股(01933) - 2021 - 中期财报