Financial Performance - Revenue for the six months ended September 30, 2021, was HKD 37,362,000, an increase of 43.1% compared to HKD 26,102,000 for the same period in 2020[6] - Gross profit for the same period was HKD 13,051,000, representing a 74.6% increase from HKD 7,471,000 in 2020[6] - The group reported a profit before tax of HKD 682,000 for the six months ended September 30, 2021, compared to HKD 285,000 for the same period in 2020[30] - Profit and total comprehensive income for the period increased by approximately 150% from HKD 0.2 million to HKD 0.5 million, driven by increased revenue and gross profit[73] - The company reported a profit attributable to owners of HKD 501,000 for the period, up from HKD 210,000 in the same period last year[6] - Basic earnings per share increased to HKD 0.08 from HKD 0.04 year-on-year[6] - The basic earnings per share attributable to the company's owners for the six months ended September 30, 2021, was 501 thousand HKD, compared to 210 thousand HKD for the same period in 2020, representing a 138.6% increase[44] Revenue Breakdown - Revenue from fire safety system installation services was HKD 33,283,000, up 100% from HKD 16,595,000 in the previous year[25] - Revenue from maintenance services decreased to HKD 4,079,000, down 57% from HKD 9,507,000 in the previous year[25] - Revenue increased by approximately 43.3% from HKD 26.1 million for the six months ended September 30, 2020, to HKD 37.4 million for the six months ended September 30, 2021, primarily due to an increase in new contracts for fire safety system installations[63] Cash Flow and Assets - The net cash used in operating activities was HKD (3,810,000), an improvement from HKD (5,960,000) in the previous year[15] - The company experienced a net decrease in cash and cash equivalents of HKD (6,353,000) compared to HKD (4,998,000) in the previous year[15] - Total assets as of September 30, 2021, were HKD 144,082,000, compared to HKD 142,987,000 as of March 31, 2021[8] - The total equity as of September 30, 2021, was HKD 137,883,000, slightly up from HKD 137,382,000 as of March 31, 2021[8] - Trade receivables as of September 30, 2021, totaled 10,896 thousand HKD, a decrease of 10.9% from 12,231 thousand HKD as of March 31, 2021[48] - Trade payables as of September 30, 2021, amounted to 6,598 thousand HKD, an increase of 28.8% from 5,127 thousand HKD as of March 31, 2021[50] Operational Highlights - The company continues to focus on expanding its fire safety services in Hong Kong[18] - The group operates primarily in Hong Kong, with no regional segment reporting due to the location of its services and assets[35] - The group has established a new computer system to digitize project and document processes[98] - The group has hired six engineers and assistant engineers to enhance service capacity[93] - The group has maintained good relationships with employees, with no significant labor disputes reported as of September 30, 2021[86] Expenses and Costs - Direct costs rose by approximately 30.6% from HKD 18.6 million to HKD 24.3 million, consistent with the revenue increase[64] - Administrative expenses increased by approximately 24.1% from HKD 8.7 million to HKD 10.8 million, primarily due to higher administrative staff costs[69] - The total employee costs for the six months ended September 30, 2021, amounted to 11,387 thousand HKD, an increase of 12.2% from 10,148 thousand HKD in the same period of 2020[39] - Employee costs for the six months ended September 30, 2021, were approximately HKD 11.4 million, compared to HKD 10.1 million for the same period in 2020[86] Government Subsidies - Other income decreased significantly to HKD 148,000 from HKD 2,230,000 in the previous year, primarily due to the absence of COVID-19 related government subsidies[36] - The group did not recognize any COVID-19 related government subsidies during the current interim period, compared to HKD 1,806,000 in the previous year[36] - Other income decreased significantly from HKD 2.2 million to HKD 0.1 million, mainly due to the absence of subsidies from the Hong Kong government's "Employment Support Scheme" during the reporting period[66] Financial Position - As of September 30, 2021, the group maintained a strong financial position with bank balances of approximately HKD 47.3 million and a current ratio of approximately 18.2 times[75] - The group had no interest-bearing bank and other borrowings as of September 30, 2021[76] - As of September 30, 2021, the group had performance guarantees provided by two banks amounting to approximately HKD 4.1 million[85] Corporate Governance - The audit committee reviewed the unaudited consolidated financial statements for the six months ending September 30, 2021, and confirmed compliance with applicable accounting standards and regulations[120] - The audit committee consists of three independent non-executive directors, ensuring proper oversight of financial reporting and risk management[120] - The company has complied with the corporate governance code, except for the separation of roles between the chairman and CEO, which is deemed appropriate by the board[117] - There were no known business or interest conflicts involving directors and the company's controlling shareholders as of September 30, 2021[115] Future Outlook - The company expects the difficulties caused by the COVID-19 pandemic to ease, leading to a gradual recovery of the Hong Kong economy[60] - The company will continue to strengthen its market position and optimize productivity and efficiency amid intense market competition and economic uncertainty[60] Shareholder Information - As of September 30, 2021, Foxfire holds 427,500,000 shares, representing a 71.25% ownership stake in the company[110] - No stock options were granted, exercised, expired, canceled, or lapsed under the stock option plan from its adoption until September 30, 2021[111] - The company has not purchased, sold, or redeemed any of its listed securities during the six months ending September 30, 2021[116] - The company has not disclosed any major shareholders or interests exceeding 5% as of September 30, 2021, apart from those already mentioned[109]
莹岚集团(01162) - 2022 - 中期财报