Financial Statements and Compliance - The condensed consolidated financial statements as of September 30, 2020, were reviewed and found to be in compliance with HKAS 34[9] - The report covers the financial position and performance for the six-month period ending September 30, 2020[9] - The company is responsible for the preparation and presentation of the financial statements[9] - The review was conducted in accordance with Hong Kong Standard on Review Engagements 2410[10] - No significant matters were identified that would lead to a belief that the financial statements were not prepared in all material respects according to HKAS 34[14] - The audit was performed by Deloitte Touche Tohmatsu, a certified public accountant firm[16] - The interim report was published on November 25, 2020[16] Revenue and Profit Performance - Revenue for the six months ended September 30, 2020, was HK$56,602,000, a decrease of 51.4% compared to HK$116,667,000 in 2019[17] - Gross profit for the same period was HK$26,208,000, down 38.7% from HK$42,843,000 in 2019[17] - Profit for the period was HK$7,261,000, a decline of 64.8% from HK$20,586,000 in the previous year[17] - Total comprehensive income for the period was HK$9,675,000, compared to HK$17,799,000 in 2019, reflecting a decrease of 45.3%[17] - Basic earnings per share decreased to 1.97 HK cents from 4.23 HK cents, representing a decline of 53.5%[17] - Profit before tax for the six months ended September 30, 2020, was HK$9,271,000, a decrease of 63.7% compared to HK$25,591,000 in the same period of 2019[21] - The overall profit before tax for the six months ended September 30, 2020, was HK$9,271,000, compared to HK$25,591,000 for the same period in 2019, reflecting a decline of 63.7%[50][53] Assets and Liabilities - Current assets increased to HK$226,007,000 as of September 30, 2020, up from HK$208,258,000 at March 31, 2020[18] - Inventories rose significantly to HK$67,550,000 from HK$50,448,000, indicating a 33.9% increase[18] - Net current assets improved to HK$182,758,000, compared to HK$172,498,000 at the end of March 2020[18] - Total assets less current liabilities increased to HK$211,279,000 from HK$202,442,000[18] - Equity attributable to owners of the Company rose to HK$159,095,000 from HK$149,975,000, reflecting an increase of 6.8%[18] Cash Flow and Financing - Operating cash flows before movements in working capital decreased to HK$11,804,000 from HK$27,695,000, reflecting a decline of 57.5%[21] - Net cash used in operating activities was HK$7,473,000, compared to a net cash inflow of HK$10,119,000 in the previous year[21] - Cash and cash equivalents at the end of the period were HK$92,556,000, down from HK$101,421,000 at the beginning of the period[21] - The Group did not raise any new bank borrowings during the period, compared to HK$6,389,000 raised in the previous year[21] - Interest paid decreased to HK$326,000 from HK$1,539,000, indicating a reduction in financing costs[21] Market Environment and Business Impact - The business environment in Hong Kong was stagnant, leading to a reduction in revenue due to fewer construction projects available in the market[24] - The Group's financial performance was negatively impacted by the slowdown in public works budget approvals due to the COVID-19 pandemic[24] - The market environment in Hong Kong remains stagnant, with no public works budget approved by the Finance Committee since the commencement of the LegCo year 2020–21[123] - The approval process for public works project budgets is expected to remain sluggish for the remainder of the year due to the ongoing COVID-19 pandemic[130] - The Group remains cautious about the future of the construction market in Hong Kong and internationally, while continuing to seek business opportunities in Hong Kong, Macau, and overseas markets[131] Segment Performance - Revenue from manufacturing and trading of DTH rockdrilling tools was HK$49,639,000, down 47.4% from HK$94,215,000 in the previous year[41][53] - Trading of piling and drilling machineries generated revenue of HK$2,808,000, a decline of 80.1% from HK$14,096,000 in the prior period[41][53] - Trading of rockdrilling equipment revenue was HK$4,155,000, down 50.2% from HK$8,356,000 year-over-year[41][53] - The segment result for manufacturing and trading of DTH rockdrilling tools was HK$24,654,000, a decrease of 36.4% from HK$38,754,000 in the same period last year[50][53] - Revenue from the manufacturing and trading of DTH rockdrilling tools contributed approximately 87.6% of total revenue during the Reporting Period, up from approximately 80.7% in the previous period[110] Employee and Management Information - The Group had 92 employees as of September 30, 2020, down from 111 employees a year earlier[156] - The total remuneration for key management personnel during the six months ended 30 September 2020 was HK$3,026,000, compared to HK$2,912,000 for the same period in 2019, reflecting an increase of approximately 3.9%[103] Share Capital and Ownership - The Group's issued and fully paid share capital remained at HK$38,000,000 as of 30 September 2020, unchanged from previous periods[97] - As of September 30, 2020, Mr. Huang Shixin holds 18,962,000 shares, representing approximately 4.99% of the total issued share capital of the Company[187] - Colour Shine holds 188,192,000 shares, accounting for approximately 49.52% of the total issued share capital of the Company[194] - Mr. He Xiaoming has an interest in 188,192,000 shares through Colour Shine, also representing approximately 49.52% of the total issued share capital[194] - Mr. Chan Leung Choi holds 19,188,000 shares, which is about 5.05% of the total issued share capital of the Company[194] Dividends and Recommendations - The company did not recommend the payment of an interim dividend for the six months ended September 30, 2020, consistent with the previous year[72] - The Board does not recommend the distribution of an interim dividend for the Reporting Period[179] Compliance and Governance - The Audit and Compliance Committee reviewed the unaudited condensed consolidated financial statements and confirmed adequate disclosures were made[176] - The Company has complied with the Listing Rules after appointing Mr. Huang Shixin as an authorized representative on November 13, 2020[181] - The Company has adopted the standard code for securities transactions by directors as per the Listing Rules[180] - The Company has complied with the provisions of the SFO regarding the disclosure of interests in shares[198]
煜荣集团(01536) - 2021 - 中期财报