Financial Performance - The company recorded revenue of approximately HKD 27.1 million for the six months ended June 30, 2023, a decrease of 50.6% compared to the same period last year[5]. - Revenue from customer contracts for the six months ended June 30, 2023, was HKD 27,053,000, a decrease of 50.7% compared to HKD 54,757,000 in the same period of 2022[55]. - Revenue from supply and paving services was HKD 11,416,000, down 77.7% from HKD 51,109,000 in the previous year[75]. - Revenue from stone sales increased significantly to HKD 15,637,000, compared to HKD 3,648,000 in the prior period, marking a growth of 328.5%[75]. - The loss attributable to the company's owners increased from approximately HKD 1.8 million for the six months ended June 30, 2022, to approximately HKD 3.6 million for the same period in 2023[21]. - Operating loss for the six months ended June 30, 2023, was HKD 1,020,000, compared to an operating profit of HKD 1,889,000 in the previous year[55]. - The company reported a loss before tax of HKD 3,590,000 for the six months ended June 30, 2023, compared to a loss of HKD 1,836,000 in the same period of 2022[86]. - Basic and diluted loss per share for the six months ended June 30, 2023, was HKD 0.24, compared to HKD 0.15 for the same period in 2022[55]. Cost and Expenses - The overall gross profit margin improved from approximately 25.6% to 28.5%, despite a decrease in gross profit from approximately HKD 14.0 million to approximately HKD 7.7 million, a decline of about 45.1%[12]. - Administrative expenses decreased by approximately HKD 0.9 million or 9.3% to approximately HKD 8.7 million for the current period[13]. - Financial costs decreased from approximately HKD 3.7 million to approximately HKD 2.6 million, primarily due to the repayment of certain outstanding bank loans[15]. - Financial costs for the six months ended June 30, 2023, amounted to HKD 2,570,000, a decrease of 30.9% from HKD 3,725,000 in 2022[83]. Assets and Liabilities - Total assets as of June 30, 2023, were HKD 225,597,000, a decrease from HKD 231,818,000 as of December 31, 2022[57]. - Total liabilities as of June 30, 2023, were HKD 163,572,000, down from HKD 178,203,000 at the end of 2022[59]. - Total equity increased to HKD 62,025,000 as of June 30, 2023, from HKD 53,615,000 at the end of 2022[57]. - The net current assets were approximately HKD 110.1 million as of June 30, 2023, slightly up from HKD 108.7 million on December 31, 2022[29]. - The total bank borrowings amounted to approximately HKD 33.6 million as of June 30, 2023, a decrease from HKD 36.6 million on December 31, 2022[25]. - Total bank borrowings decreased to HKD 33,619,000 as of June 30, 2023, from HKD 36,555,000 as of December 31, 2022, a reduction of 7.9%[97]. Cash Flow and Financing - As of June 30, 2023, the group's cash and cash equivalents were approximately HKD 0.5 million, down from HKD 1.4 million on December 31, 2022[24]. - Operating cash flow for the six months ended June 30, 2023, was a net outflow of HKD 616,000, compared to a net inflow of HKD 3,517,000 in the same period of 2022[63]. - The net cash inflow from financing activities was HKD 839,000, a significant improvement from a net outflow of HKD 4,355,000 in the previous year[63]. - The company raised HKD 9,000,000 from issuing new shares and HKD 2,500,000 from convertible bonds during the financing activities[63]. - Overdue bank loans were significantly reduced to approximately HKD 33,619,000 as of June 30, 2023, down from HKD 91,703,000 previously reported[67]. - The company is actively seeking additional financing sources, including debt or equity financing, to improve its capital structure and reduce overall financing costs[69]. Corporate Governance and Compliance - The company has not declared any interim dividend for the six months ended June 30, 2023, consistent with the previous year[7]. - The company is currently seeking suitable candidates to fill vacancies for independent non-executive directors and audit committee members to comply with listing rules[48]. - The company has not met the requirement of having at least three independent non-executive directors on the board as per listing rules[48]. - The company is committed to maintaining strict corporate governance and effective internal control measures[45]. - The company has adopted the standard code for securities trading by directors and confirmed compliance with the trading standards as of June 30, 2023[47]. Market Conditions and Challenges - The company faced challenges due to rising interest rates, a declining property market in Hong Kong, and increased material and logistics costs[5]. - The global economic growth is projected to decline from 3.5% in 2022 to 3% in 2023 and 2024, impacting the company's operations[8]. - The effective annual interest rate on bank borrowings increased to 10.79% as of June 30, 2023, compared to a range of 3.38% to 7.35% as of December 31, 2022[99]. Shareholder Information - Mr. Lei Yurun holds 784,210,000 shares through a controlled corporation, representing 50.33% of the issued share capital[40]. - Mr. Lei Yurun is the beneficial owner of 784,770,000 shares, accounting for 50.37% of the issued share capital[42]. - Mr. Cai Xuerui, a major shareholder, owns 122,786,341 shares, which is 6.28% of the issued share capital[42]. - Mr. Lei Yurun has a short position of 72,515,000 shares, equivalent to 4.65% of the issued share capital[42]. - As of June 30, 2023, the company had issued a total of 1,483,354,483 shares, an increase from 1,331,469,661 shares as of December 31, 2022, reflecting a growth of 11.4%[101].
基石控股(01592) - 2023 - 中期财报