Financial Performance - For the six months ended September 30, 2021, the company's revenue was approximately HKD 157.9 million, a decrease of 33.2% compared to HKD 236.4 million in the same period of 2020[11]. - The profit attributable to the company's owners for the same period was approximately HKD 8.5 million, down 57.0% from HKD 19.7 million in 2020[11]. - The gross profit margin for the six months ended September 30, 2021, was 12.2%, an increase from 10.3% in the previous year[16]. - Other income and net gains for the period were approximately HKD 1.6 million, a significant decrease of 84.9% from HKD 10.6 million in 2020[16]. - Revenue for the six months ended September 30, 2021, was HKD 157,877,000, a decrease of 33.1% from HKD 236,394,000 in the same period of 2020[58]. - Gross profit for the same period was HKD 19,321,000, down 21.4% from HKD 24,536,000 year-on-year[58]. - Operating profit decreased to HKD 9,849,000, a decline of 58.6% compared to HKD 23,764,000 in the previous year[58]. - Profit before tax was HKD 9,823,000, down 58.7% from HKD 23,732,000 in the prior year[58]. - Total comprehensive income for the period was HKD 8,467,000, a decrease of 56.9% from HKD 19,668,000 in the same period of 2020[58]. - Basic and diluted earnings per share for the period were HKD 0.85, compared to HKD 1.97 in the previous year, representing a decline of 56.8%[58]. Expenses and Costs - Administrative and operating expenses for the six months were approximately HKD 11.1 million, slightly down 2.9% from HKD 11.4 million in the previous year[16]. - Employee costs for the six months ended September 30, 2021, were approximately HKD 35,500,000, down from HKD 43,200,000 in the same period of 2020[30]. - The company's financing costs for the six months ended September 30, 2021, were HKD 26, compared to HKD 32 for the same period in 2020, reflecting a reduction of 19%[87]. - Employee costs (excluding directors' remuneration) for the six months ended September 30, 2021, were HKD 34,827, down 15% from HKD 41,222 in the previous year[89]. - Total tax expenses for the period were HKD 1,356,000, down from HKD 4,064,000 in the previous year, indicating a reduction of 66.7%[94]. Assets and Liabilities - As of September 30, 2021, total assets amounted to HKD 326,292 thousand, an increase from HKD 300,233 thousand as of March 31, 2021, representing an 8.7% growth[61]. - Trade receivables increased significantly to HKD 31,705 thousand from HKD 11,802 thousand, indicating a 168.5% rise[61]. - Contract assets rose to HKD 83,352 thousand from HKD 61,639 thousand, reflecting a 35% increase[61]. - Cash and cash equivalents decreased to HKD 53,730 thousand from HKD 74,907 thousand, a reduction of 28.2%[70]. - The company’s non-current assets totaled HKD 60,960 thousand, a slight decrease from HKD 63,398 thousand[61]. - The company’s net current assets increased to HKD 260,663 thousand from HKD 250,487 thousand, an increase of 4.7%[61]. - Trade payables and retention payables amounted to HKD 45,114,000 as of September 30, 2021, compared to HKD 34,434,000 as of March 31, 2021, representing an increase of 30.9%[112]. Capital Structure and Financing - The capital debt ratio as of September 30, 2021, was approximately 0.2%, unchanged from March 31, 2021, indicating a stable capital structure[22]. - The net proceeds from the share issuance, after deducting listing expenses of approximately HKD 45,200,000, amounted to about HKD 79,800,000, with HKD 68,600,000 already utilized by September 30, 2021[32]. - The unutilized portion of the net proceeds is expected to be used in the next fiscal year, primarily due to delays caused by the COVID-19 pandemic and other factors[33]. - The group maintains a prudent policy to manage cash reserves and ensure a strong liquidity position for future growth opportunities[23]. Business Operations - The company confirmed revenue from a total of 6 projects during the period, with one project completed[14]. - The revenue from project W55 was HKD 52.4 million, while project W56 generated HKD 35.8 million, both showing a decrease compared to the previous year[14]. - The decrease in profit was primarily due to reduced civil engineering revenue from projects W52 and W56, as well as a decline in government and other subsidy income[11]. - The group plans to actively participate in government tender projects to achieve revenue growth, despite increasing competition and technical requirements[19]. - The group aims to enhance its bidding advantages and capabilities to secure more successful tenders in the construction industry[19]. Shareholder and Governance - The company did not declare an interim dividend for the six months ended September 30, 2021, compared to no dividend declared in 2020[39]. - The company has not engaged in any purchase, sale, or redemption of its listed securities during the six months ended September 30, 2021[55]. - The audit committee reviewed the unaudited condensed consolidated financial statements for the six months ended September 30, 2021, and confirmed compliance with applicable accounting standards[56]. - The company did not report any significant new product developments or market expansions during this period[76]. - There were no major mergers or acquisitions reported in the current financial period[76]. Related Party Transactions - The company recognized significant related party transactions, including interest payments of HKD 8,000 for lease liabilities to Mr. Lai Wei, compared to HKD 4,000 in the previous year[123]. - The company agreed to purchase property from Mr. Lai Wei for HKD 6,000,000, with a deposit of HKD 600,000 paid as of September 30, 2021[123]. - Total remuneration for directors and senior management was HKD 3,780,000 for the six months ended September 30, 2021, up from HKD 3,270,000 in the previous year[124]. - The company’s total remuneration for key management personnel, including salaries and retirement benefits, was HKD 3,843,000 for the current period[124]. - The company has not completed the acquisition of the property from Mr. Lai Wei as of the report date[123].
生兴控股(01472) - 2022 - 中期财报