Financial Performance - The company reported a net profit attributable to shareholders of approximately HKD 21.3 million for the six months ended September 30, 2021, compared to HKD 9.5 million for the same period in 2020[7]. - Revenue from continuing operations decreased by approximately HKD 96.6 million or 19.4% to about HKD 402.5 million for the interim period, down from approximately HKD 499.1 million for the six months ended September 30, 2020[8]. - The company recorded a profit before tax of approximately HKD 21,300,000 during the interim period, compared to a loss of about HKD 700,000 in the same period of 2020[21]. - The total comprehensive income attributable to the owners of the company for the interim period was approximately HKD 26,200,000, compared to about HKD 23,900,000 for the six months ended September 30, 2020[24]. - The net profit for the period was HKD 21,343,000, a significant recovery from a loss of HKD 5,150,000 in the prior year[63]. - Basic and diluted earnings per share for the period were HKD 0.610, compared to HKD 0.288 in the previous year, indicating a growth of 111.5%[63]. Revenue Breakdown - The concrete business accounted for approximately 88.1% of total revenue from continuing operations, generating about HKD 354.5 million, a decrease of approximately HKD 101.7 million or 22.3% compared to the previous year[10]. - Revenue from the home consumables business increased by approximately HKD 5.1 million or 20.2% to about HKD 30.4 million, primarily due to increased sales in the UK[11]. - Revenue from the lending business maintained stable revenue of approximately HKD 17.6 million for both periods, with an average total loan portfolio of about HKD 261 million[11]. - Revenue from external customers for the concrete business was HKD 354,516,000, a decrease from HKD 456,233,000 in the previous year, representing a decline of approximately 22.4%[99]. - Revenue from external customers for the home consumables business increased to HKD 30,391,000 from HKD 25,286,000, reflecting a growth of about 20.9%[99]. Cost and Expenses - Gross profit from continuing operations decreased by approximately HKD 4.4 million or 4.5% to about HKD 92 million, with a gross profit margin of 22.9%[13]. - The sales and distribution expenses decreased by approximately HKD 5,000,000 or 11.8% during the interim period, attributed to active cost control and improved operational efficiency[17]. - Administrative expenses decreased by approximately HKD 3,300,000 or 10.5% to about HKD 27,800,000 during the interim period, mainly due to a reduction in employee costs[18]. - The cost of goods sold for the six months ended September 30, 2021, was HKD 292,707,000, down from HKD 388,030,000 in the previous year, representing a decrease of 24.6%[116]. Debt and Financial Ratios - As of September 30, 2021, the group had total debt of approximately HKD 348,900,000, compared to about HKD 343,300,000 as of March 31, 2021[25]. - The current ratio as of September 30, 2021, was 2.3, reflecting sufficient financial resources, while the debt-to-equity ratio was 37.3%[25]. - The company reported total borrowings of HKD 146,167,000 as of September 30, 2021, an increase from HKD 142,697,000 as of March 31, 2021, indicating a rise of approximately 2.9%[189]. - The company’s total liabilities increased to HKD 547,726,000 as of September 30, 2021, compared to HKD 448,491,000 as of March 31, 2021, marking an increase of approximately 22.2%[186]. Employee and Operational Metrics - The group employed a total of 244 employees as of September 30, 2021, down from 271 employees a year earlier, with employee costs approximately HKD 22,900,000 compared to HKD 24,400,000 in the previous year[38]. - The total employee costs for the six months ended September 30, 2021, were HKD 22,859,000, a decrease from HKD 24,356,000 in the same period of 2020[116]. Business Segments and Strategy - The company continues to focus on its core businesses of concrete production, home consumables, and lending services[6]. - The group is committed to expanding its concrete business market share in Hainan Province to ensure better performance and increased shareholder returns in the coming years[40]. - The home consumables business showed slight revenue and gross margin growth compared to the same period last year, with plans to identify suitable permanent locations for future development[42]. - The lending business remains a stable source of income, with the group optimistic about its continued profitability due to reduced competition in the market[43]. Discontinued Operations - The company completed the sale of its digital technology business for a total consideration of HKD 30 million, effectively terminating this segment[120]. - The coal business was sold for a nominal price of HKD 100, with the sale completed on September 1, 2020, and classified as discontinued operations[122]. - The education business was sold for HKD 40 million, with the transaction completed on March 31, 2021, allowing the company to focus on more profitable segments[123]. - For the six months ended September 30, 2021, the digital technology business generated revenue of HKD 428, while the education business contributed HKD 3,996, leading to a total revenue of HKD 4,424 from discontinued operations[125]. Governance and Compliance - The group has complied with corporate governance codes and has maintained a strong governance framework throughout the reporting period[45]. - The company has adopted a share option scheme to reward eligible participants with options to subscribe for shares, enhancing employee motivation and retention[38].
华盛国际控股(01323) - 2022 - 中期财报