Financial Performance - The company's revenue increased by 33.0% from approximately HKD 127.2 million for the six months ended June 30, 2020, to approximately HKD 169.2 million for the reporting period[16]. - Gross profit improved to approximately HKD 29.0 million with a gross profit margin of 17.2%, compared to a gross loss of approximately HKD 32.2 million and a gross loss margin of 25.3% in the previous period[17]. - The company recorded a profit attributable to equity shareholders of approximately HKD 13.1 million for the reporting period, compared to a loss of approximately HKD 43.8 million for the six months ended June 30, 2020[24]. - Operating profit for the six months was HKD 18,087,000, a recovery from an operating loss of HKD 43,377,000 in the prior year[68]. - The company achieved a profit before tax of HKD 18,015,000, compared to a loss before tax of HKD 43,780,000 in the same period last year[68]. - The net profit for the period was HKD 13,053,000, a significant improvement from a net loss of HKD 43,780,000 in the previous year[68]. - Basic and diluted earnings per share for the period were HKD 0.82, compared to a loss per share of HKD 2.74 in the same period last year[68]. Cash Flow and Assets - As of June 30, 2021, the company's cash and cash equivalents amounted to approximately HKD 74.4 million, an increase from HKD 34.9 million as of December 31, 2020[25]. - The company reported a net cash inflow from operating activities of HKD 44,666 million for the six months ended June 30, 2021, compared to a cash outflow of HKD 8,746 million in the same period of 2020[82]. - Cash and cash equivalents at the end of the period were HKD 74,417 million, significantly up from HKD 28,569 million at the end of June 2020, representing a growth of 160.5%[82]. - Total assets amounted to HKD 149,785 million, an increase of 15.7% from HKD 129,434 million as of December 31, 2020[70]. - The net current assets increased to HKD 84,152 million, up from HKD 68,464 million, reflecting a growth of 22.9%[70]. - The total equity increased to HKD 124,251 million as of June 30, 2021, compared to HKD 111,186 million at the end of 2020, marking an increase of 11.7%[70]. Expenses and Liabilities - General and administrative expenses decreased from approximately HKD 15.9 million to approximately HKD 12.0 million, mainly due to a reduction in impairment losses on other receivables[22]. - Financing costs decreased significantly from approximately HKD 0.4 million to approximately HKD 0.07 million, attributed to a substantial reduction in average borrowings during the reporting period[23]. - Total employee costs for the reporting period, including director salaries, amounted to approximately HKD 19.6 million, compared to HKD 26.5 million for the six months ended June 30, 2020[32]. - Total liabilities were HKD 73,604,000, with segment liabilities of HKD 31,454,000 for civil engineering and HKD 38,931,000 for entertainment education[106]. Business Operations and Projects - The company currently has three ongoing projects with a total initial contract value of approximately HKD 111.9 million as of June 30, 2021[12]. - The company has commenced new business activities in the education and training sector related to performing arts in Hainan, China, which began operations in May 2021[15]. - The board remains cautiously optimistic about the gradual recovery of the construction business in Hong Kong, despite ongoing challenges from the COVID-19 pandemic[13]. - The company is actively participating in tenders to maintain its market competitiveness and is enhancing cost control measures[13]. - The company has expanded its operations into the cultural and educational sectors in mainland China during the reporting period[84]. - The company plans to continue its investment in civil engineering and building projects in Hong Kong, aiming for further market penetration[84]. Government Support and Subsidies - Other income decreased by 78.0% from approximately HKD 4.7 million to approximately HKD 1.0 million, primarily due to a reduction in government subsidies related to COVID-19[21]. - The company received government subsidies related to COVID-19 amounting to HKD 931,000 during the reporting period[109]. Shareholder and Equity Information - As of June 30, 2021, the major shareholder, Victory Way Global Company Limited, held 1,200,000,000 shares, representing 75% of the company's equity[60]. - The company maintained sufficient public float as required by the listing rules during the reporting period[65]. - The company did not recommend the payment of dividends for the reporting period[47]. - The company did not declare an interim dividend for the six months ended June 30, 2021, consistent with the previous year[122]. Accounting and Compliance - The audit committee was established on October 8, 2018, to oversee the financial reporting and internal control systems of the group[66]. - The company has adopted new accounting standards that did not have a significant impact on the financial reporting for the current period[90].
富汇国际集团控股(01034) - 2021 - 中期财报