Contract and Project Performance - The Group secured four new contracts with a total original contract value of approximately HK$185.1 million, representing a decrease of approximately 64.8% compared to HK$526.3 million for the six months ended 30 September 2020[17]. - As of 30 September 2021, the Group has a total of 16 projects on hand with an estimated total outstanding contract value of approximately HK$461.5 million, a decrease of approximately 12.3% from HK$526.0 million as of 31 March 2021[19]. - The performance of subcontract works is expected to remain steady for the coming years based on the projects on hand[19]. - The Group aims to maintain its gross profit margin by avoiding thin-margin projects that could be loss-making[18]. - The Group will continue to factor in a higher profit margin in its tender preparations due to intensifying competition in the formwork works industry[20]. - The Group is committed to identifying suitable opportunities in line with its cost control and risk management policies[20]. Financial Performance - The Group recorded revenue of approximately HK$272.4 million for the Period, representing an increase of 18.7% compared to approximately HK$229.4 million for the six months ended 30 September 2020[24]. - The Group's gross profit decreased by approximately HK$5.6 million or 15.5% to approximately HK$30.6 million, with the gross profit margin declining from approximately 15.8% to approximately 11.2%[27]. - The Group's other income decreased by approximately HK$0.7 million or 87.5% to approximately HK$0.1 million, primarily due to the absence of government grants received in the previous period[32]. - Administrative and other operating expenses increased by approximately 93.4% from approximately HK$6.1 million to approximately HK$11.8 million, mainly due to higher staff costs and professional fees[33]. - Finance costs increased from approximately HK$0.2 million to approximately HK$0.6 million, attributed to an increase in interest-bearing borrowings[34]. - Income tax expenses decreased by approximately HK$1.8 million or 35.3% to approximately HK$3.3 million, mainly due to a decrease in assessable profits[35]. - Profit attributable to owners of the Company decreased by approximately HK$5.0 million from approximately HK$20.0 million to approximately HK$15.0 million for the Period[36]. Dividend and Equity - The Board did not declare the payment of interim dividend for the Period, consistent with the previous period[43]. - As of September 30, 2021, the Group had net current assets of approximately HK$308.2 million, an increase of 7.0% from HK$286.2 million as of March 31, 2021[44]. - The total equity attributable to owners of the Company was approximately HK$346.4 million, up from HK$331.4 million as of March 31, 2021, reflecting a growth of 4.9%[45]. - The Group's total interest-bearing borrowings and lease liabilities decreased to approximately HK$33.4 million from HK$43.7 million, a reduction of 23.5%[45]. - The gearing ratio improved to approximately 9.4% as of September 30, 2021, down from 12.7% as of March 31, 2021, indicating a stronger equity position[48]. Staffing and Employee Costs - The total staff cost for the six months ended September 30, 2021, was approximately HK$184.2 million, representing a 27.4% increase from HK$144.7 million for the same period in 2020[74]. - The Group had 1,323 employees as of September 30, 2021, an increase of 13.9% from 1,161 employees as of March 31, 2021[74]. - Salaries, allowances, and other benefits increased to HK$3,811,000 in 2021 from HK$3,438,000 in 2020, representing an increase of approximately 10.9%[199]. - Contributions to defined contribution plans decreased to HK$54,000 in 2021 from HK$72,000 in 2020, a decline of approximately 25%[199]. - Total employee-related expenses amounted to HK$3,865,000 in 2021, up from HK$3,510,000 in 2020, indicating an increase of about 10.1%[199]. Cash Flow and Financial Position - The company reported a net cash decrease of HK$24,652,000 in cash and cash equivalents, compared to an increase of HK$30,606,000 in the prior year[125]. - Cash and cash equivalents at the end of the reporting period were HK$32,024,000, down from HK$74,462,000 at the end of the previous period[125]. - The company incurred finance costs of HK$565,000, compared to HK$232,000 in the previous year[125]. - The Group's current liabilities include interest-bearing borrowings classified as such due to lenders' rights to demand repayment without notice[194]. - The Group's financial statements for the six months ended 30 September 2021 are unaudited, indicating ongoing financial assessments[195]. Risks and Mitigation - The COVID-19 pandemic poses risks to operations, potentially leading to labor shortages and increased construction costs, which could adversely affect business performance[87][88]. - The Group has implemented health and safety measures to mitigate COVID-19 risks, resulting in no confirmed cases among workers at project sites during the reporting period[90]. - The adverse impacts of COVID-19, if they persist, may negatively affect the Group's financial performance[89]. Corporate Governance - The Group has adopted sound corporate governance principles and fully complied with the Corporate Governance Code during the reporting period[96][97]. - The Company has established an Audit Committee in compliance with Listing Rules 3.21 and 3.22[102]. - All directors confirmed full compliance with the standard code of conduct during the period[104]. Share Capital and Ownership - As of September 30, 2021, the issued share capital of the Company was 1,600,000,000 Shares[114]. - Mr. Leung Yam Cheung holds 1,200,000,000 Shares, representing a 75% interest in the Company[110]. - Sky Mission, wholly owned by Mr. Leung Yam Cheung, is the beneficial owner of 1,200,000,000 Shares, equating to 75% of the issued share capital[114]. - The Group's authorised share capital increased from HK$380,000 to HK$40,000,000, allowing for the creation of an additional 3,962,000,000 shares[196]. Revenue Recognition and Customer Concentration - For the six months ended September 30, 2021, the Group's revenue from formwork works services was HK$59,974,000, a decrease of 4.4% compared to HK$62,830,000 in the same period of 2020[147]. - Customer A contributed 59,974,000 HKD, while Customer D contributed 68,114,000 HKD, indicating a shift in revenue concentration among major customers[147]. - The Group's revenue is recognized over time as construction services are performed, based on the value of completed construction work using the output method[151].
天任集团(01429) - 2022 - 中期财报