Financial Performance - The revenue for the six months ended June 30, 2021, was approximately HK$327,838,000, representing an increase of approximately 10.7% compared to HK$296,233,000 for the same period in 2020[19] - The gross profit for the six months ended June 30, 2021, was approximately HK$34,887,000, with a stable gross profit margin of approximately 10.6%[21] - Other income decreased by approximately 74.0%, from approximately HK$2,171,000 in 2020 to approximately HK$564,000 in 2021, primarily due to the reduction in subsidies from the Employment Support Scheme[23] - Administrative expenses increased by approximately 15.8%, from approximately HK$33,243,000 in 2020 to approximately HK$38,496,000 in 2021[26] - Finance costs decreased by approximately 35.9%, from approximately HK$8,337,000 in 2020 to approximately HK$5,348,000 in 2021, due to reduced usage of bank borrowings[38] - The loss attributable to the owners of the Company for the six months ended June 30, 2021, was approximately HK$7,826,000, a decrease of approximately 13.4% from approximately HK$9,038,000 in 2020[39] - For the six months ended 30 June 2021, the Group's financial costs decreased by approximately 35.9%, amounting to about HK$5,348,000 compared to HK$8,337,000 for the same period in 2020[43] - The total loss attributable to owners for the six months ended 30 June 2021 was approximately HK$7,826,000, a reduction of about 13.4% from HK$9,038,000 in the previous year[45] Assets and Liabilities - Total assets as of June 30, 2021, amounted to HK$585,075,000, up from HK$514,000,000 as of December 31, 2020, marking an increase of 13.8%[164] - The Group's total debt, including bank borrowings and lease liabilities, was approximately HK$270,020,000 as of 30 June 2021, an increase from approximately HK$235,276,000 as of 31 December 2020[60] - As of June 30, 2021, total liabilities increased to HK$454,912,000, up from HK$376,208,000 as of December 31, 2020, representing a 20.8% increase[167] - Current liabilities decreased to HK$448,277,000 from HK$375,020,000, indicating a reduction of 15.5%[167] - Lease liabilities rose significantly to HK$6,635,000 from HK$1,188,000, marking a 460.5% increase[167] - Borrowings increased to HK$259,735,000 from HK$232,906,000, which is an increase of 11.5%[167] Shareholder Information - The Group's issued capital was HK$8,000,000 with 800,000,000 shares issued at HK$0.01 each as of 30 June 2021[62] - As of June 30, 2021, Mr. Ng holds 600,000,000 shares, representing a 75% shareholding in the Company[99] - The Company did not recommend the payment of an interim dividend for the six months ended June 30, 2021[89] - For the six months ended June 30, 2021, the Company did not declare an interim dividend to shareholders[93] Cash Flow and Financing - The company reported a net cash used in operating activities of HK$22,049,000 for the six months ended June 30, 2021, compared to a net cash generated of HK$36,752,000 in the same period of 2020[176] - The company’s cash flow from financing activities generated HK$29,166,000, compared to a cash outflow of HK$19,141,000 in the previous period[176] - The Group plans to monitor its working capital management closely and adjust its business strategies as necessary in response to the ongoing COVID-19 pandemic[57] - The Group will consider various sources for funding its working capital, including cash generated from operations and net proceeds from the IPO[68] Corporate Governance - The Company complied with the Corporate Governance Code provisions during the six months ended June 30, 2021[91] - The roles of chairman and CEO are not separated, as the Board believes this is in the best interest of the Group[92] - The Company had three independent non-executive Directors on the Board to ensure a balance of power[92] - All Directors confirmed compliance with the Model Code for Securities Transactions throughout the reporting period[94] Share Options - As of June 30, 2021, the company granted 4,000,000 share options at an exercise price of HK$0.712 per share[120] - None of the 4,000,000 share options were exercised, expired, or lapsed during the six months ended June 30, 2021, remaining outstanding[128] - The total number of share options granted under the Share Option Scheme represents 0.5% of the total number of issued shares[131] - The fair values of the share options granted during the period were approximately HK$1,424,000, with share option expenses recognized of approximately HK$197,000[131] - The expected life of the share options is ten years, based on management's best estimates[144] - The expected volatility of the shares is calculated based on the historical volatility of closing prices from the Listing Date to the day immediately before the Date of Grant[143] Business Outlook - The Group intends to commercialize its existing technologies and technical solutions, aiming to launch a total solution for the fitting-out, interior design, and construction industries once it matures[55] - The Group expects to maintain stability in the fitting-out industry in Hong Kong in the long term, supported by the government's ongoing development of land resources to meet housing demand[54] - The company is primarily engaged in providing fitting-out services and repair and maintenance services for residential and commercial properties in Hong Kong[184] Accounting Policies - The condensed consolidated financial statements for the six months ended June 30, 2021, have been prepared in accordance with HKAS 34, reflecting the continuation of the listing business[191] - The accounting policies used in the preparation of the condensed consolidated financial statements are consistent with those applied in the previous year ended December 31, 2020[193] - The group has applied amendments to HKFRSs effective from January 1, 2021, which had no material impact on the financial positions and performance for the current and prior periods[197] - New amendments to HKFRSs effective from January 1, 2022, are being assessed by management for their potential impact on future financial reporting[198]
德合集团(00368) - 2021 - 中期财报