Revenue and Profitability - The Group's overall revenue increased by 196.9% from approximately HK$128,557,000 during the six months ended 30 September 2019 to approximately HK$381,657,000 during the six months ended 30 September 2020[8]. - The Group's overall gross profit increased by 83.7% from approximately HK$7,317,000 during the six months ended 30 September 2019 to approximately HK$13,444,000 during the six months ended 30 September 2020[10]. - The Group reported a net profit of approximately HK$1,675,000 during the six months ended 30 September 2020, compared to a net loss of approximately HK$9,922,000 during the same period in 2019[17]. - Profit attributable to owners of the Company for the six months ended 30 September 2020 amounted to approximately HK$1,675,000, a significant recovery from a loss of approximately HK$9,922,000 in 2019[19]. - The earnings per share for the period was 0.4 cents, a turnaround from a loss of 2.5 cents per share in 2019[76]. - The Group reported a profit of HK$1,675,000 for the six months ended 30 September 2020, compared to a loss of HK$9,922,000 in the same period of 2019[130]. Expenses and Costs - The Group's overall gross profit margin decreased from approximately 5.7% during the six months ended 30 September 2019 to approximately 3.5% during the six months ended 30 September 2020[11]. - Additional costs incurred towards the completion stage of certain foundation projects contributed to the decrease in gross profit margin[11]. - The Group's administrative expenses were approximately HK$13,871,000 during the six months ended 30 September 2020, comparable to approximately HK$14,103,000 during the corresponding period in 2019[15]. - Total staff costs incurred by the Group during the six months ended 30 September 2020 were approximately HK$32,002,000, compared to approximately HK$26,403,000 for the same period in 2019[48]. - Employee benefits expense rose to HK$31,001,000, an increase of 21% from HK$25,585,000 in the previous year[126]. Projects and Contracts - As of 30 September 2020, there were 12 active projects, with one completed and 11 in progress[8]. - Six new projects were awarded to the Group during the twelve months ended 30 September 2020, with one completed and five in progress as of 30 September 2020[8]. - The increase in revenue was mainly attributable to the new projects undertaken by the Group[10]. - The outstanding value of contracts on hand as at 30 September 2020 was approximately HK$1,269 million, up from approximately HK$310 million as of 31 March 2020[21]. Financial Position - The Group's total debts as at 30 September 2020 were approximately HK$146,979,000, a decrease from approximately HK$152,862,000 as of 31 March 2020[27]. - The gearing ratio of the Group as at 30 September 2020 was 156.2%, down from 165.4% as of 31 March 2020[38]. - The current ratio of the Group as at 30 September 2020 was 1.3, compared to 1.5 as of 31 March 2020[38]. - As of 30 September 2020, total assets were HK$535,459,000, up from HK$352,519,000 as of 31 March 2020[78]. - Current liabilities increased to HK$410,179,000 from HK$232,998,000, reflecting a rise in trade payables and contract liabilities[78]. - The net current assets stood at HK$125,280,000, slightly up from HK$119,521,000 in the previous period[78]. Shareholder and Governance - The Board does not recommend the payment of an interim dividend for the six months ended 30 September 2020[49]. - The Company complied with the Corporate Governance Code during the six months ended 30 September 2020[49]. - The Board regularly reviews the effectiveness of the Group's internal control system, including financial, operational, and compliance controls[51]. - All Directors confirmed compliance with the Model Code for Securities Transactions throughout the six months ended 30 September 2020[52]. Risks and Monitoring - The Group closely monitors its foreign exchange risk and will consider hedging significant foreign exchange risks if necessary[44]. - The Group does not currently have any interest rate hedging policy but continuously monitors interest rate risks[36]. Legal and Litigation - The Group has a major litigation claim from a subcontractor totaling approximately HK$20,329,000, which is still unresolved as of the reporting date[164]. - The Group has not made any provisions for the aforementioned claim due to the ongoing legal proceedings and uncertainty regarding the outcome[165]. - The Group has been negotiating the final settlement amount of a completed contract with a customer, with ongoing legal proceedings as of the approval date of the financial statements[168]. - The Group's management considers it premature to assess the outcome of the ongoing litigations with the customer[169]. Other Financial Information - The Group's rental expenses charged by a related company for the six months ended September 30, 2020, were HK$733,000, compared to HK$772,000 in the same period of 2019[172]. - Total compensation paid to key management personnel for the six months ended September 30, 2020, was HK$2,938,000, slightly up from HK$2,893,000 in the previous year[177]. - The Group did not have any significant capital commitments as of 30 September 2020, remaining unchanged from March 31, 2020[170]. - There were no material events occurring for the Group after the reporting period[175].
剑虹集团控股(01557) - 2021 - 中期财报