Revenue Performance - Total revenue decreased by approximately 194.6 million HKD or 46.6% to about 223.0 million HKD for the six months ended September 30, 2019, compared to 417.6 million HKD for the same period in 2018[6]. - The private sector project revenue was approximately 147.7 million HKD, accounting for about 66.2% of total revenue, down from 338.7 million HKD or 81.1% in the previous year[10]. - Public sector project revenue was approximately 75.3 million HKD, representing about 33.8% of total revenue, compared to 78.9 million HKD or 18.9% in the previous year[10]. - For the six months ended September 30, 2019, the revenue from contract with customers was HKD 222,971,000, a decrease of 46.7% compared to HKD 417,585,000 for the same period in 2018[97]. Profitability - Profit attributable to owners increased by 0.7 million HKD or 270.5% to approximately 1.0 million HKD, primarily due to the absence of fair value changes and losses from the sale of financial assets measured at fair value[6]. - The profit attributable to the owners of the company for the six months ended September 30, 2019, was approximately HKD 1.0 million, representing an increase of about 270.5% compared to approximately HKD 0.3 million for the same period in 2018[22]. - The company reported a net profit of HKD 1,019,000 for the six months ended September 30, 2019, compared to HKD 275,000 in the previous year, representing a significant increase[51]. - The profit for the six months ended September 30, 2019, was HKD 1,019,000, representing a significant increase from HKD 275,000 in the same period of 2018, marking a growth of 270%[112]. Expenses and Costs - Gross profit decreased by approximately 32.9 million HKD or 72.3% to about 12.6 million HKD, with gross margin dropping from 10.9% to 5.6%[15]. - Other income fell by approximately 304,000 HKD to about 136,000 HKD, a decrease of about 69.1% due to reduced interest income from receivables and rental income[16]. - Administrative expenses decreased by approximately 2.0 million HKD or 17.0% to about 10.1 million HKD, mainly due to a reduction in professional fees[18]. - Financing costs increased by approximately 0.1 million HKD or 2.7% to about 1.4 million HKD, attributed to increased interest expenses on loans from related companies[20]. - The total salary cost recognized in the profit and loss for the six months ended September 30, 2019, was approximately HKD 114.2 million, compared to approximately HKD 214.8 million for the same period in 2018[33]. - The company incurred employee costs of HKD 114,211,000 for the six months ended September 30, 2019, a decrease from HKD 221,835,000 in the previous year, indicating a reduction of approximately 48%[111]. Cash Flow and Liquidity - As of September 30, 2019, the group had cash and cash equivalents of approximately HKD 170.7 million, a decrease of about 6.0% from HKD 181.7 million as of March 31, 2019[23]. - The net cash generated from operating activities for the six months ended September 30, 2019, was HKD 18,040,000, compared to a net cash used of HKD 52,114,000 in the same period of 2018[58]. - The net cash used in investing activities was HKD 1,305,000, a decrease from HKD 14,406,000 in the previous year[58]. - The net cash used in financing activities was HKD 27,702,000, significantly lower than the net cash generated of HKD 156,145,000 in the prior year[58]. - The cash and cash equivalents decreased by HKD 10,967,000, compared to an increase of HKD 89,625,000 in the same period last year[58]. - The cash and cash equivalents at the end of the period were HKD 170,721,000, down from HKD 182,063,000 at the end of the previous period[58]. - The initial cash balance at the beginning of the period was HKD 181,688,000, compared to HKD 92,438,000 in the previous year[58]. - The bank balance and cash at the end of the period was HKD 37,791,000, down from HKD 188,816,000 in the previous year[58]. Assets and Liabilities - Total assets decreased to HKD 375,796,000 as of September 30, 2019, down from HKD 433,524,000 as of March 31, 2019[53]. - Current liabilities were HKD 197,612,000 as of September 30, 2019, compared to HKD 256,407,000 as of March 31, 2019, indicating a reduction in short-term obligations[54]. - The total liabilities as of September 30, 2019, were HKD 199,856,000, down from HKD 258,603,000 as of March 31, 2019, indicating a decrease of 22.7%[105]. - The total equity as of September 30, 2019, was HKD 175,940,000, slightly up from HKD 174,921,000 as of March 31, 2019[54]. - The total trade receivables decreased to HKD 53,083,000 as of September 30, 2019, down from HKD 91,462,000 as of March 31, 2019, indicating a reduction of approximately 42%[114]. - The company's contract assets amounted to HKD 121,822,000 as of September 30, 2019, compared to HKD 128,853,000 as of March 31, 2019, reflecting a decrease of about 5.5%[116]. - Trade payables were reported at HKD 13,711,000 as of September 30, 2019, down from HKD 19,365,000 as of March 31, 2019, showing a decline of approximately 29%[117]. Employee and Management Compensation - The total compensation for key management personnel for the six months ended September 30, 2019, was HKD 3,343,000, a slight decrease of 1.6% compared to HKD 3,397,000 in the same period of 2018[127]. - The retirement benefits for key management personnel remained unchanged at HKD 36,000 for both periods[127]. Accounting Standards and Policies - The group has adopted new Hong Kong Financial Reporting Standards, which may impact the financial statements but did not have a significant effect on the current and prior periods[62]. - The application of HKFRS 16 on leases has resulted in changes to accounting policies, affecting the recognition of right-of-use assets and lease liabilities[66]. - The company recognized lease liabilities of approximately HKD 385,000 and corresponding right-of-use assets of HKD 385,000 upon the initial application of HKFRS 16 on April 1, 2019[91]. - The weighted average incremental borrowing rate applied was 3.97% for the measurement of lease liabilities[91]. - The company chose to apply the practical expedient not to recognize right-of-use assets and lease liabilities for leases with a term of 12 months or less[90]. - The company will remeasure lease liabilities when there are changes in lease terms or assessments of purchase options[83]. Other Information - The group secured 5 new contracts during the review period, with a total contract value of approximately 325.7 million HKD[6]. - There were no major acquisitions or disposals of subsidiaries or associates during the reporting period[30]. - The group had no significant contingent liabilities as of September 30, 2019[28]. - The company did not declare any dividends during the interim period, as per the board's decision[112]. - The company has not conducted any significant post-reporting period events[49]. - The company has not purchased, sold, or redeemed any of its securities since the listing date[47]. - No share options have been granted, exercised, cancelled, or lapsed under the share option scheme since its adoption on May 23, 2017[48].
建成控股(01630) - 2020 - 中期财报