高升集团控股(01283) - 2024 - 中期业绩

Financial Highlights The company's financial performance for the six months ended September 30, 2023, shows increased revenue but decreased gross profit and profit attributable to owners of the company | Indicator | For the six months ended September 30, 2023 (HK$ thousand) | For the six months ended September 30, 2022 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 282,337 | 213,790 | +32.1% | | Gross Profit | 40,799 | 45,356 | -10.0% | | Gross Profit Margin | 14.5% | 21.2% | -6.7pp | | Profit Attributable to Owners of the Company | 14,919 | 30,953 | -51.8% | | Interim Dividend Per Share (HK cents) | 0.7 | 1.6 | -56.3% | Condensed Consolidated Financial Statements This section presents the group's condensed consolidated financial statements, including the statement of profit or loss, financial position, and cash flows Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended September 30, 2023, the group saw significant revenue growth, but increased service costs, administrative expenses, and finance costs, alongside reduced other income, led to a substantial decline in gross profit and profit attributable to owners of the company | Indicator | For the six months ended September 30, 2023 (HK$ thousand) | For the six months ended September 30, 2022 (HK$ thousand) | | :--- | :--- | :--- | | Revenue | 282,337 | 213,790 | | Cost of Services | (241,538) | (168,434) | | Gross Profit | 40,799 | 45,356 | | Other Income and Other Gains | 1,362 | 6,402 | | Impairment Losses Under Expected Credit Loss Model, Net of Reversals | (1,295) | (1,295) | | Administrative Expenses | (21,271) | (14,410) | | Finance Costs | (1,027) | (259) | | Profit Before Tax | 18,568 | 35,794 | | Income Tax Expense | (3,268) | (4,880) | | Profit and Total Comprehensive Income for the Period | 15,300 | 30,914 | | Profit Attributable to Owners of the Company for the Period | 14,919 | 30,953 | | Profit Attributable to Non-controlling Interests for the Period | 381 | (39) | | Basic Earnings Per Share (HK cents) | 1.9 | 3.9 | | Diluted Earnings Per Share (HK cents) | 1.9 | Not Applicable | Condensed Consolidated Statement of Financial Position As of September 30, 2023, the group's total assets and total equity slightly increased, while current liabilities decreased, indicating a stable financial position | Indicator | As at September 30, 2023 (HK$ thousand) | As at March 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | ASSETS | | | | Non-current Assets | 102,356 | 92,550 | | Current Assets | 453,996 | 459,451 | | TOTAL ASSETS | 556,352 | 552,001 | | LIABILITIES | | | | Current Liabilities | 148,592 | 146,312 | | Non-current Liabilities | 7,734 | 8,277 | | TOTAL LIABILITIES | 156,326 | 154,589 | | EQUITY | | | | Equity Attributable to Owners of the Company | 400,412 | 398,179 | | Non-controlling Interests | (386) | (767) | | TOTAL EQUITY | 400,026 | 397,412 | | TOTAL ASSETS LESS CURRENT LIABILITIES | 407,760 | 405,689 | | NET CURRENT ASSETS | 305,404 | 313,139 | Notes to the Condensed Consolidated Financial Statements This section provides detailed notes explaining the basis of preparation, significant accounting policies, and specific financial statement line items Basis of Preparation and Significant Accounting Policies These interim financial statements are prepared under HKAS 34 and Listing Rules, using historical cost basis, with no significant impact from revised HKFRSs - The condensed consolidated financial statements are prepared in accordance with Hong Kong Accounting Standard 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[15] - The condensed consolidated financial statements are prepared on the historical cost basis, except for financial assets at fair value through profit or loss which are measured at fair value at the end of the reporting period[16] - The application of the revised Hong Kong Financial Reporting Standards during the current period had no significant impact on the group's financial position and performance and/or disclosures contained in these condensed consolidated financial statements for the current and prior periods[43] Revenue and Segment Information All group revenue is derived from M&E engineering services provided to Hong Kong clients, constituting a single operating segment - The group's customers for M&E engineering services are primarily property owners, construction companies, and private sector contractors in Hong Kong[20] - All the group's revenue is derived from customers located in Hong Kong, and all its non-current assets (excluding financial instruments and deferred tax assets) are located in Hong Kong[21] - In accordance with Hong Kong Financial Reporting Standard 8 Operating Segments, the group has only one single reporting and operating segment[45] Other Income and Other Gains Other income and gains significantly decreased this period, primarily due to reduced government grants from the Employment Support Scheme in the prior year | Item | For the six months ended September 30, 2023 (HK$ thousand) | For the six months ended September 30, 2022 (HK$ thousand) | | :--- | :--- | :--- | | Interest income | 283 | 238 | | Government grants | – | 5,617 | | Rental income | 78 | 152 | | Other income | 968 | 345 | | Gain on disposal of property, plant and equipment | – | 50 | | Gain on derecognition of right-of-use assets | 33 | – | | Total | 1,362 | 6,402 | - The decrease in other income and other gains was mainly due to a reduction of approximately HK$5,617,000 in government grants from the Employment Support Scheme provided by the Hong Kong Government in the corresponding period last year[63] Finance Costs Finance costs increased significantly this period, mainly driven by higher interest expenses on bank borrowings | Item | For the six months ended September 30, 2023 (HK$ thousand) | For the six months ended September 30, 2022 (HK$ thousand) | | :--- | :--- | :--- | | Interest on bank borrowings | 796 | 170 | | Interest on lease liabilities | 231 | 89 | | Total | 1,027 | 259 | Profit Before Tax Profit before tax decreased, influenced by increased depreciation of property, plant and equipment, right-of-use assets, staff costs, and donations | Item | For the six months ended September 30, 2023 (HK$ thousand) | For the six months ended September 30, 2022 (HK$ thousand) | | :--- | :--- | :--- | | Depreciation of property, plant and equipment | 2,676 | 563 | | Depreciation of right-of-use assets | 2,713 | 1,965 | | Depreciation of investment properties | 111 | 18 | | Total staff costs | 41,963 | 37,315 | | Donations | 3,000 | 500 | Income Tax Expense Income tax expense decreased due to lower taxable profit this period, with Hong Kong profits tax at 16.5% and a two-tiered rate for some subsidiaries | Item | For the six months ended September 30, 2023 (HK$ thousand) | For the six months ended September 30, 2022 (HK$ thousand) | | :--- | :--- | :--- | | Hong Kong Profits Tax – Current tax | 3,268 | 4,880 | - Hong Kong Profits Tax is calculated at 16.5% of the estimated assessable profit, with Chit Tat M&E Engineering Company Limited, a wholly-owned subsidiary, being a qualifying corporation under the two-tiered profits tax regime, taxed at 8.25% for the first HK$2 million and 16.5% for amounts exceeding HK$2 million[26] - The decrease in income tax expense was mainly due to the decrease in assessable profit for the period[93] Dividends The Board declared an interim dividend of 0.7 HK cents per ordinary share for the six months ended September 30, 2023, a decrease from the prior year | Item | For the six months ended September 30, 2023 | For the six months ended September 30, 2022 | | :--- | :--- | :--- | | Interim dividend (per ordinary share) | 0.7 HK cents | 1.6 HK cents | | Total interim dividend | HK$5,600,000 | HK$12,800,000 | - During the interim period, a final dividend of 1.6 HK cents per ordinary share (totaling HK$12,800,000) for the year ended March 31, 2023, was declared to the owners of the company[27] Earnings Per Share Basic earnings per share for the period was 1.9 HK cents, a decrease from the prior year, with diluted earnings per share presented due to share awards | Indicator | For the six months ended September 30, 2023 | For the six months ended September 30, 2022 | | :--- | :--- | :--- | | Basic Earnings Per Share (HK cents) | 1.9 | 3.9 | | Diluted Earnings Per Share (HK cents) | 1.9 | Not Applicable | | Weighted average number of ordinary shares for basic EPS | 800,000,000 | 800,000,000 | | Weighted average number of ordinary shares for diluted EPS | 800,155,881 | Not Applicable | - No diluted earnings per share for any past period was presented as there were no potential dilutive shares in issue[52] Trade and Other Receivables, Deposits and Prepayments Total trade and other receivables, deposits, and prepayments decreased, primarily due to enhanced receivables control processes, with credit terms typically 7 to 90 days | Item | As at September 30, 2023 (HK$ thousand) | As at March 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Trade receivables (net of allowance for credit losses) | 83,309 | 104,695 | | Other receivables (net of allowance for credit losses) | 3,587 | 2,505 | | Refundable rental deposits | 823 | 966 | | Amount due from non-controlling interests of a subsidiary | 994 | – | | Prepayments for purchase of materials and subcontracting fees | 7,130 | 12,181 | | Prepaid expenses | 1,709 | 2,965 | | Utilities and other deposits | 722 | 720 | | Total | 98,274 | 124,032 | - The group generally grants credit terms of 7 to 90 days to its customers[30] - The decrease in trade receivables was mainly due to enhanced receivables control processes[121] | Ageing | As at September 30, 2023 (HK$ thousand) | As at March 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | 0 to 30 days | 39,678 | 35,751 | | 31 to 90 days | 24,799 | 55,925 | | 91 to 180 days | 9,013 | 7,272 | | Over 180 days | 10,450 | 6,378 | | Less: Allowance for credit losses | (631) | (631) | | Total | 83,309 | 104,695 | Bank Borrowings Total bank borrowings slightly decreased, secured by company guarantees and certain properties, and classified as current liabilities due to banks' right to modify or cancel financing at any time | Item | As at September 30, 2023 (HK$ thousand) | As at March 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Bank borrowings | 45,603 | 47,550 | - The bank borrowings are secured by corporate guarantees provided by the company and by two parking spaces and an office of the group[81] - The banks may, at their sole discretion, amend, cancel or suspend the banking facilities at any time without prior notice, and accordingly, the group's bank borrowings were classified as current liabilities at those dates[32] Management Discussion and Analysis This section provides management's perspective on the group's business performance, financial position, future outlook, and key operational aspects Business Overview As a long-established M&E engineering service provider in Hong Kong, the group focuses on increasing market share, prudently managing macroeconomic changes, maintaining competitive pricing, and investing in R&D through joint laboratories for innovative technology applications - The group is a long-established M&E engineering service provider, primarily engaged in the supply, installation, and maintenance of mechanical ventilation and air-conditioning systems, drainage systems, water supply, swimming pool and fountain systems, electrical and control systems, and building intelligent systems[58] - The group's primary focus remains on "striving to increase market share; prudently grasping macroeconomic changes; timely adjusting the group's operating strategies and maintaining competitive pricing strategies"[59] - The group established the "Chit Tat - Education University of Hong Kong Metaverse and Human-Computer Interaction Joint Laboratory" in 2022 and is committed to supporting the establishment of a joint laboratory with The Hong Kong Polytechnic University in the metaverse field to promote smart city development and innovation[84] Business Review During the period, Hong Kong's economic and business environment slightly improved, with the group's contract value remaining stable at approximately HK$1 billion, reflecting client recognition of its management and capabilities - The group's contract value remained stable at approximately HK$1 billion during the period, which also demonstrates clients' recognition of the group's management, capabilities, and project management[59] - During the period, Hong Kong's economic situation and business environment slightly improved compared to the same period last year[85] Financial Review The group experienced significant revenue growth but a decline in gross profit and profit attributable to owners of the company, primarily due to increased service costs, administrative expenses, and reduced other income, with balance sheet items also reflecting business activities and receivables control Revenue Revenue increased significantly, driven by progress on residential projects and completion of several residential and commercial projects | Indicator | For the six months ended September 30, 2023 (HK$ thousand) | For the six months ended September 30, 2022 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 282,337 | 213,790 | +32.1% | - The increase in revenue was mainly due to the progress of certain residential projects located in Kai Tak and Tin Shui Wai, which were in the early stages of project implementation[60] - Additionally, the group completed several residential and commercial projects during the period, contributing to a significant increase in revenue[60] Cost of Services Service costs increased in line with revenue growth, primarily comprising material costs, direct labor, and subcontracting fees for on-site work | Indicator | For the six months ended September 30, 2023 (HK$ thousand) | For the six months ended September 30, 2022 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Cost of Services | 241,538 | 168,434 | +43.4% | - Cost of services primarily refers to material costs (including accessories for mechanical ventilation and air-conditioning systems such as air conditioners and ventilation fans, as well as pipes and fittings), direct labor costs, and subcontracting fees for completing on-site works[60] - The increase in cost of services is consistent with the increase in the group's revenue[60] Gross Profit and Gross Profit Margin Gross profit and gross profit margin decreased, mainly due to revenue generated from lower-margin projects, which helped enhance market share and brand image | Indicator | For the six months ended September 30, 2023 (HK$ thousand) | For the six months ended September 30, 2022 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Gross Profit | 40,799 | 45,356 | -10.0% | | Gross Profit Margin | 14.5% | 21.2% | -6.7pp | - The decrease in gross profit margin was mainly due to the revenue generated from lower-margin projects awarded during the same period, which helped enhance market share and build brand image[62][89] Other Income and Other Gains Other income and gains decreased significantly, primarily due to a reduction in government grants from the Employment Support Scheme in the prior year | Indicator | For the six months ended September 30, 2023 (HK$ thousand) | For the six months ended September 30, 2022 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Other Income and Other Gains | 1,362 | 6,402 | -78.7% | - The decrease in other income and other gains was mainly due to a reduction of approximately HK$5,617,000 in government grants from the Employment Support Scheme provided by the Hong Kong Government in the corresponding period last year[63] Administrative Expenses Administrative expenses increased, mainly due to a HK$3 million donation to Hong Kong Polytechnic University for establishing a joint laboratory | Indicator | For the six months ended September 30, 2023 (HK$ thousand) | For the six months ended September 30, 2022 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Administrative Expenses | 21,271 | 14,410 | +47.6% | - The increase in administrative expenses was mainly due to a donation of HK$3,000,000 made to The Hong Kong Polytechnic University for the establishment of a joint laboratory[92] Income Tax Expense Income tax expense decreased, primarily due to a reduction in taxable profit during the period | Indicator | For the six months ended September 30, 2023 (HK$ thousand) | For the six months ended September 30, 2022 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Income Tax Expense | 3,268 | 4,880 | -33.0% | - The decrease in income tax expense was mainly due to the decrease in assessable profit for the period[93] Profit and Total Comprehensive Income Attributable to Owners of the Company Profit and total comprehensive income attributable to owners of the company decreased, mainly due to reduced gross profit and increased administrative and finance costs | Indicator | For the six months ended September 30, 2023 (HK$ thousand) | For the six months ended September 30, 2022 (HK$ thousand) | | :--- | :--- | :--- | | Profit and Total Comprehensive Income Attributable to Owners of the Company | 14,919 | 30,953 | - The decrease in profit and total comprehensive income attributable to owners of the company was mainly due to the decrease in gross profit and the increase in administrative expenses and finance costs during the period[94] Interim Dividend The Board resolved to declare an interim dividend of 0.7 HK cents per share, totaling approximately HK$5.6 million, payable around January 10, 2024 - The Board has resolved to declare an interim dividend of 0.7 HK cents per share of the company for the period, amounting to approximately HK$5,600,000[94] - The interim dividend will be paid to shareholders whose names appear on the register of members of the company at the close of business on December 15, 2023, and will be paid on or about January 10, 2024[94] Closure of Register of Members The company's share register will be closed from December 13 to December 15, 2023, inclusive, with no share transfers accepted during this period - The company's register of members will be closed from December 13, 2023 to December 15, 2023, both days inclusive, during which period no transfer of shares will be registered[95] - To qualify for the interim dividend, all share transfer documents, together with the relevant share certificates and transfer forms, must be lodged with the company's Hong Kong Share Registrar, Tricor Investor Services Limited, by 4:30 p.m. on December 12, 2023 at the latest[95] Property, Plant and Equipment Property, plant and equipment increased, primarily due to the acquisition of a yacht | Indicator | As at September 30, 2023 (HK$ thousand) | As at March 31, 2023 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Property, Plant and Equipment | 70,810 | 60,868 | +16.3% | - The increase in property, plant and equipment was mainly due to the addition of a yacht[67] Trade and Other Receivables, Deposits and Prepayments Trade and other receivables, deposits, and prepayments decreased, mainly due to enhanced receivables control processes | Indicator | As at September 30, 2023 (HK$ thousand) | As at March 31, 2023 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade and Other Receivables, Deposits and Prepayments | 98,274 | 124,032 | -20.8% | - The decrease in trade receivables was mainly due to enhanced receivables control processes[121] Trade Payables and Retention Monies and Accrued Charges Trade payables and retention monies and accrued charges decreased, primarily due to settlement of purchases for M&E systems and payments to subcontractors | Indicator | As at September 30, 2023 (HK$ thousand) | As at March 31, 2023 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Trade Payables and Retention Monies and Accrued Charges | 70,392 | 77,266 | -8.9% | | Trade Payables | 42,540 | 52,924 | -19.6% | - The decrease in trade payables was mainly due to the settlement of various purchases of mechanical ventilation and air-conditioning systems and payments to certain subcontractors before the end of the period[122] Retention Monies Payable Retention monies payable increased, mainly due to subcontractors' contributions to the group's ongoing projects | Indicator | As at September 30, 2023 (HK$ thousand) | As at March 31, 2023 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Retention Monies Payable | 13,381 | 13,205 | +1.3% | - The increase in retention monies payable was mainly due to the contributions from subcontractors to the group's existing projects[97] Future Prospects The group is optimistic about future business development, aiming to enhance service capabilities, capitalize on opportunities from Hong Kong's 'Northern Metropolis' development and carbon neutrality goals, and explore new areas in innovative, smart, energy-efficient, and environmentally friendly technologies through partnerships - The group will further enhance its service capabilities and seize business opportunities to solidify its position in the M&E engineering industry, actively seeking development opportunities to expand its business scope[123] - The Hong Kong Government's commitment to increasing land supply for no less than 72,000 residential units over the next five years and the upcoming release of the "Northern Metropolis Action Agenda" are expected to bring significant business opportunities to the construction and innovation and technology industries[71] - The group will strive to integrate energy-saving technologies and renewable energy into M&E systems to improve building energy efficiency, aligning with the government's 2050 carbon neutrality target, and actively seek partners to promote energy-saving and emission reduction initiatives[72] - The group was awarded 7 new projects during the period, with a total contract value of approximately HK$232,240,000[123] Liquidity and Financial Resources The group's working capital is primarily funded by internal resources and bank borrowings, maintaining a sound financial position with increased pledged bank balances and cash equivalents, a slight decrease in gearing ratio, and growth in capital expenditure Financial Policy The group's working capital is funded by internal resources and bank borrowings, maintaining a sound financial position with sufficient reserves for commitments and expansion - The group's working capital is funded by internal resources and bank borrowings[126] - The group maintains a sound financial position, capable of providing ample financial resources for existing commitments, working capital needs, and further business expansion when required[74] - The group's policy is to regularly monitor current and anticipated liquidity needs to ensure sufficient cash reserves are maintained[127] Pledged Bank Balances and Cash and Cash Equivalents Pledged bank balances and cash and cash equivalents increased, attributed to improved cash flow management through enhanced receivables control processes | Indicator | As at September 30, 2023 (HK$ thousand) | As at March 31, 2023 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Pledged Bank Balances and Cash and Cash Equivalents | 96,273 | 74,359 | +29.5% | - The increase was due to improved cash flow management through enhanced receivables control processes[127] - Pledged bank balances and cash and cash equivalents are denominated in Hong Kong Dollars and primarily generated from the group's ordinary operations[74] Bank Borrowings Bank borrowings are secured by group properties and company guarantees, bearing floating interest rates tied to Hong Kong Prime Rate or HIBOR | Repayment Period | As at September 30, 2023 (HK$ thousand) | As at March 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Within one year | 23,248 | 24,538 | | More than one year but not exceeding two years | 1,393 | 1,394 | | More than two years but not exceeding five years | 4,438 | 5,978 | | More than five years | 16,524 | 15,640 | | Total | 45,603 | 47,550 | - Bank borrowings are secured by two parking spaces, an office of the group, and corporate guarantees provided by the company[128] - Bank borrowings bear interest at floating annual rates ranging from Hong Kong Prime Rate minus 2.75% to 2.85% or one-month HIBOR plus 1.75%[105] Gearing Ratio The gearing ratio, calculated as total interest-bearing liabilities divided by total equity, slightly decreased to approximately 14.8% | Indicator | As at September 30, 2023 | As at March 31, 2023 | | :--- | :--- | :--- | | Gearing Ratio | Approx. 14.8% | Approx. 15.2% | - The gearing ratio is calculated as total interest-bearing liabilities divided by total equity[106] Capital Expenditure Capital expenditure for the acquisition of property, plant and equipment increased significantly during the period | Item | For the six months ended September 30, 2023 (HK$ thousand) | For the six months ended March 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Acquisition of property, plant and equipment | 12,618 | 3,876 | Capital Commitments As of September 30, 2023, contracted but unprovided capital expenditure for property, plant and equipment significantly decreased to HK$353 thousand | Item | As at September 30, 2023 (HK$ thousand) | As at March 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Contracted but not provided for capital expenditure for acquisition of property, plant and equipment | 353 | 12,353 | Contingent Liabilities Performance bonds increased, issued by banks and secured by pledged bank balances and company guarantees, with no other significant contingent liabilities at period-end | Item | As at September 30, 2023 (HK$ thousand) | As at March 31, 2023 (HK$ thousand) | | :--- | :--- | :--- | | Performance bonds | 94,020 | 79,942 | - Performance bonds are issued by banks under banking facilities and are secured by the group's pledged bank balances and corporate guarantees provided by the company[108] - As at September 30, 2023, the group had no other significant contingent liabilities[134] Pledge of Group Assets The group's assets, including certain vehicles, refundable rental deposits, parking spaces, an office, and pledged bank balances, are used as collateral for lease liabilities and bank financing - The group's assets, including certain vehicles, refundable rental deposits, two parking spaces, an office, and pledged bank balances, are pledged as collateral for the group's lease liabilities and bank financing[109] Material Investments The group had no material investments during the period, beyond what is disclosed in this announcement - Save as disclosed in this announcement, the group had no material investments during the period[110] Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures The group made no material acquisitions or disposals of subsidiaries, associates, or joint ventures during the period - During the period, the group made no material acquisitions or disposals of subsidiaries, associates, and joint ventures[111] Future Plans for Material Investments and Capital Assets The group has no other plans for material investments or capital assets beyond those disclosed in this announcement - As at September 30, 2023, save as disclosed in this announcement, the group had no other plans for material investments or capital assets[137] Foreign Exchange Risk Management The group currently has no foreign currency hedging policy as foreign currency risk is considered immaterial, but management will continue to monitor and consider hedging if necessary - The group currently has no foreign currency hedging policy as foreign currency risk is considered immaterial[112] - Management will continue to closely monitor the group's foreign exchange risk and will consider hedging significant foreign exchange risk when necessary[112] Events After the Reporting Period No significant events affecting the group have occurred since the end of the reporting period up to the date of this announcement, other than those disclosed - Save as disclosed in this announcement, no significant events affecting the group have occurred since the end of the period and up to the date of this announcement[113] Employees and Remuneration Policy Both the number of employees and staff costs increased, with the group offering competitive salaries, benefits, training, and performance-based incentives to attract and retain talent | Indicator | As at September 30, 2023 | As at September 30, 2022 | | :--- | :--- | :--- | | Number of Employees | 188 | 182 | | Total Staff Costs | HK$41,963,000 | HK$37,315,000 | - The group provides employees with competitive salaries and benefits (with reference to market conditions and individual qualifications and experience) and adequate job training[113] - In addition to mandatory provident funds and job training programs, employees may also receive salary increments, discretionary bonuses, share options, and share awards based on individual performance evaluations and market conditions[113] Share Option Scheme and Share Award Scheme The company adopted a share award scheme on September 15, 2023, granting 10,827,000 award shares, with no share options granted under the share option scheme during the period - The company adopted a Share Award Scheme on September 15, 2023, to provide incentives to attract, retain, and motivate eligible participants[114] - As at September 30, 2023, 10,827,000 award shares were granted under the scheme[114] - As at September 30, 2023, no share options were granted under the Share Option Scheme[140] Other Information This section covers corporate governance, compliance, and other relevant disclosures for the period Corporate Recognition The group received 'Environmental Excellent Partner' and 'Environmental Pioneer' titles from the Federation of Hong Kong Industries, recognizing its environmental contributions - The group was awarded the titles of "Environmental Excellent Partner" and "Environmental Pioneer" by the Federation of Hong Kong Industries, recognizing the group's contributions to the environment[115] Competing Interests No directors, controlling shareholders, or their close associates held interests in any business competing or potentially competing with the group during the period - During the period, none of the directors or controlling shareholders of the company or their close associates had any interests in any business that competes or is likely to compete, directly or indirectly, with the group's business[142] Purchase, Sale or Redemption of the Company's Listed Securities Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the period - During the period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's shares[143] Sufficiency of Public Float The directors confirm that the company maintained a sufficient public float for its shares as required by the Listing Rules throughout the period - The directors confirm that the company has maintained a sufficient public float for its shares as required by the Listing Rules throughout the period[144] Compliance with the Corporate Governance Code of the Listing Rules The company complied with the Corporate Governance Code, except for the combined roles of Chairman and CEO, which the Board believes benefits management and business development, with future consideration for separation - The company has complied with the code provisions of the Corporate Governance Code set out in Appendix 14 to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited during the period, save for code provision C.2.1, which stipulates that the roles of chairman and chief executive officer should be separate and not performed by the same individual[145] - The Board believes that Dr. Ko's dual role as Chairman and Chief Executive Officer is beneficial to the group's management and business development and will provide strong and consistent leadership to the group[154] - The Board will continue to review and consider separating the roles of Chairman and Chief Executive Officer at an appropriate and suitable time, taking into account the overall circumstances of the group[154] Standard Code for Securities Transactions by Directors of Listed Issuers The company adopted the Standard Code for directors' securities transactions, and all directors confirmed compliance throughout the period - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules as its code of conduct regarding directors' securities transactions[119] - The company has made specific enquiries to all directors, and they have all confirmed that they have complied with the required standards set out in the Standard Code throughout the period[119] Review of Interim Financial Results The condensed consolidated financial statements for the period were reviewed by Deloitte Touche Tohmatsu, the independent auditor, and discussed with management by the Board's audit committee - The condensed consolidated financial statements for the period have been reviewed by Deloitte Touche Tohmatsu, the company's independent auditor, in accordance with Hong Kong Standard on Review Engagements 2410 issued by the Hong Kong Institute of Certified Public Accountants[147] - The Board's Audit Committee has discussed with the group's management and reviewed this announcement (including the accounting principles and standards adopted by the group) in conjunction with the group's independent auditor[155] Publication of Interim Results Announcement and Interim Report This announcement is published on the company's and HKEX websites, with the 2023 interim report to be dispatched to shareholders and available online in due course - This announcement is published on the company's website (http://www.chittathk.com) and the HKEX website (https://www.hkexnews.hk)[148](index=148&type=chunk) - The company's 2023 Interim Report will be dispatched to the company's shareholders in due course and will be available for inspection on the respective websites of the HKEX and the company[148] Acknowledgement The Board extends sincere gratitude to the group's management, staff, shareholders, business partners, and other professionals for their diligent contributions and support during the period - The Board wishes to express its sincere gratitude to the group's management and all staff for their diligent contributions, and to its shareholders, business partners, and other professionals for their support during the period[157]