Revenue Performance - For the six months ended September 30, 2019, the group's total revenue was approximately HKD 124.4 million, an increase of 13.2% compared to HKD 109.8 million for the same period in 2018[8]. - Revenue from construction engineering decreased to approximately HKD 33.1 million, accounting for 26.6% of total revenue, down from 37.3% in the previous year[9]. - Revenue from construction machinery leasing significantly increased to approximately HKD 91.4 million, representing 73.4% of total revenue, compared to 57.3% in the same period last year[13]. - The group reported revenue of HKD 124.4 million for the six months ended September 30, 2019, an increase from HKD 109.8 million in the same period of 2018[36]. - Revenue from construction contracts decreased to HKD 33,089,000, down 19.4% from HKD 41,022,000 in the previous year[72]. - Revenue from construction machinery leasing services increased significantly to HKD 91,356,000, up 45.3% from HKD 62,919,000 in 2018[72]. Profitability - The gross profit turned from a loss of approximately HKD 19.9 million in 2018 to a profit of approximately HKD 13.1 million in 2019, with a gross profit margin of 10.6%[15]. - The net profit for the six months ended September 30, 2019, was approximately HKD 1.2 million, a significant improvement from a loss of approximately HKD 30.8 million for the same period in 2018, primarily due to a shift from gross loss to gross profit[19]. - The group reported a segment profit of HKD 6,480,000 for the six months, compared to a segment loss of HKD 27,900,000 in the same period last year[76]. - For the six months ended September 30, 2019, the company reported a profit of HKD 1,227,000 compared to a loss of HKD 30,787,000 in the same period of 2018[88]. Expenses and Costs - Administrative expenses decreased by approximately 21.1% to HKD 10.2 million from HKD 13.0 million in the previous year, primarily due to the absence of trade receivables impairment losses in the current period[16]. - The total employee cost for the six months ended September 30, 2019, was approximately HKD 50.2 million, compared to HKD 42.6 million for the same period in 2018, with the number of employees increasing to 303 from 222[26]. - The company's financing costs totaled HKD 2,902,000 for the six months ended September 30, 2019, a slight increase from HKD 2,781,000 in 2018[83]. - The company recorded depreciation of property, plant, and equipment amounting to HKD 27,425,000 for the six months ended September 30, 2019, down from HKD 28,118,000 in 2018[85]. Assets and Liabilities - As of September 30, 2019, the group had bank balances of approximately HKD 5.3 million, down from HKD 42.7 million as of March 31, 2019, while interest-bearing liabilities increased to approximately HKD 117.9 million from HKD 104.8 million[20]. - The debt-to-equity ratio as of September 30, 2019, was approximately 57.5%, an increase of about 6.1% from 51.4% as of March 31, 2019[20]. - Total liabilities increased to HKD 172,742,000 from HKD 138,423,000, indicating a rise of about 24.8%[39]. - The company's total equity as of September 30, 2019, was HKD 205,077,000, slightly up from HKD 203,855,000 as of March 31, 2019, showing a growth of approximately 0.6%[39]. - Total assets as of September 30, 2019, amounted to HKD 377,819,000, an increase from HKD 351,274,000 as of March 31, 2019[79]. Investments and Projects - The group established a subsidiary in Hong Kong, investing HKD 5,100 to acquire 51% of the shares in a new aluminum formwork leasing service company[5]. - The group has nine ongoing projects with a total outstanding contract amount of approximately HKD 130.3 million, with six projects expected to be completed by March 31, 2020[9]. - The group has committed to invest approximately HKD 1.13 million in a joint venture in Shenzhen, with no capital injected as of September 30, 2019[28]. - The company invested approximately HKD 31,920,000 in property, plant, and equipment during the six months ended September 30, 2019, compared to HKD 7,088,000 in the same period of 2018[90]. Corporate Governance and Compliance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules and has complied with its provisions for the six months ending September 30, 2019, except for the deviation regarding the separation of roles between the Chairman and CEO[115]. - The company has confirmed compliance with the standard code for securities trading by all directors for the six months ending September 30, 2019[116]. - The company has not appointed a CEO, but the board believes that the balance of power and authority is maintained through its operations[115]. - The company will continue to strengthen its corporate governance practices to align with its business operations and development[115]. Lease Liabilities and Right-of-Use Assets - The adoption of HKFRS 16 resulted in a recognition of lease liabilities amounting to approximately HKD 74,499,000 as of April 1, 2019[58]. - The carrying amount of right-of-use assets as of September 30, 2019, was HKD 87,441,000, compared to HKD 61,727,000 on April 1, 2019[61]. - The group recognized lease liabilities based on the present value of remaining lease payments[54]. - The total carrying value of property, plant, and equipment increased from HKD 107,371,000 to HKD 108,751,000 due to the adoption of HKFRS 16[58]. - The group’s right-of-use assets are depreciated over the shorter of the lease term or the useful life of the related asset[69]. Shareholder Information - As of September 30, 2019, Mr. Hu Yongheng holds 610,995,000 shares, representing 58.89% of the company, through a controlled corporation[118]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ending September 30, 2019[126]. - There are no other individuals with recorded interests in the company's shares or related securities as of September 30, 2019, apart from those disclosed[122].
进升集团控股(01581) - 2020 - 中期财报