Financial Performance - For the six months ended September 30, 2020, the Group recorded unaudited consolidated revenue of HK$653.9 million, a 70.4% increase from HK$383.8 million in the same period last year[16]. - The unaudited consolidated profit attributable to owners of the Company was HK$102.5 million, representing a 27.5% decrease compared to HK$141.4 million for the same period in 2019[17]. - Basic and diluted earnings per share for the six months ended September 30, 2020, were HK9.4 cents, a decrease of 27.7% from HK13.0 cents in the corresponding period last year[18]. - Gross profit decreased to HK$68,771,000, down 22.1% from HK$88,154,000 in the previous year[172]. - Total comprehensive income for the period was HK$106,258,000, compared to HK$135,322,000 in the previous year[174]. - The company declared dividends of HK$54.546 million during the period, consistent with the previous year[179]. Revenue by Division - The Construction Division generated revenue of HK$452.4 million for the six months ended September 30, 2020, compared to HK$248.0 million for the same period in 2019[26]. - For the six months ended 30 September 2020, the revenue of the Interior and Renovation Division was HK$153.9 million, a 102.4% increase from HK$76.1 million for the same period in 2019[35]. - The Building Materials Division recorded a revenue of HK$23.7 million for the six months ended 30 September 2020, slightly up from HK$23.6 million for the same period in 2019[45]. - The Property Development Division recorded no revenue for the six months ended 30 September 2020, consistent with the same period in 2019[49]. - The Property Investment Division recorded a revenue of HK$25.7 million for the six months ended 30 September 2020, compared to HK$24.0 million for the same period in 2019[62]. - The Health Products Division recorded a revenue of HK$15.7 million for the six months ended 30 September 2020, down from HK$25.7 million for the same period in 2019[73]. Contracts and Projects - As of September 30, 2020, contracts on hand for the Construction Division amounted to HK$2,189.4 million[26]. - As of 30 September 2020, contracts on hand for the Interior and Renovation Division amounted to HK$110.3 million[36]. - Contracts on hand for the Building Materials Division as of 30 September 2020 totaled HK$76.6 million[46]. - Major construction works completed during the period included public rental housing developments at Shek Mun Estate Phase 2 and Choi Yuen Road Sites 3 and 4[29]. - Major ongoing contracts include a 3-year general building maintenance term contract for the City University of Hong Kong, running from 2019 to 2022[42]. - A total of 130 Sale and Purchase Agreements for commodity flats were signed in the Haining project, with 127 units delivered to customers by the end of the reporting period[54]. Economic and Market Conditions - The Hong Kong economy is projected to contract by 6% to 8% in 2020 due to the COVID-19 pandemic and other local uncertainties, as per the revised forecast[79]. - The property market in Hong Kong has seen a price increase of 1.5% so far in 2020, supported by strong demand and a low interest-rate environment[89]. - The retail, tourism, and catering industries have been severely impacted by the pandemic, contributing to a challenging business environment[79]. - Property investors are currently adopting a wait-and-see approach, leading to slow progress in awarding renovation projects during the pandemic[86]. - The construction industry is expected to benefit from upcoming residential property developments and urban renewal schemes, despite existing challenges such as skilled labor shortages and high construction costs[83]. Financial Position and Liquidity - The Group's total bank balances and cash increased from HK$246.1 million as of March 31, 2020, to HK$514.0 million as of September 30, 2020[97]. - The current ratio decreased from 0.59 times as of March 31, 2020, to 0.39 times as of September 30, 2020[97]. - The Group has access to bank and insurance company facilities totaling HK$4,100.5 million, with HK$2,750.5 million in bank loans drawn down as of September 30, 2020[98]. - The gearing ratio increased to 56.3% as of September 30, 2020, compared to 36.2% as of March 31, 2020[106]. - The Group's liquidity position is expected to remain healthy, with sufficient resources to meet obligations and support future development[99]. - The Group's current liabilities exceeded its current assets by HK$2,156,601,000 as of 30 September 2020, indicating liquidity challenges[186]. Share Capital and Corporate Governance - As of September 30, 2020, the total number of issued shares of the Company was 1,090,924,676 shares[125]. - The percentage of share options held by directors as of September 30, 2020, accounted for approximately 3.77% of the total issued share capital[137]. - The director's fee for the non-executive Chairman has been increased to HK$4,000,000 per annum[149]. - The service agreements for executive directors were renewed for another three years starting from November 14, 2020[149]. - The company has complied with all Code Provisions of the Corporate Governance Code, except for the attendance of the late Chairman at the annual general meeting[151]. Strategic Focus and Future Outlook - The company continues to focus on expanding its construction capabilities and securing new contracts in the market[26]. - The company continues to focus on expanding its construction and renovation capabilities while maintaining a commitment to safety and environmental standards[44]. - The company plans to adopt innovative approaches and maintain strong controls over tendering procedures to navigate intense competition in the construction sector[83]. - The Group's strategy includes market expansion through acquisitions and enhancing its property investment portfolio[111].
兴胜创建(00896) - 2021 - 中期财报