Revenue and Financial Performance - For the six months ended June 30, 2020, the total revenue from construction and engineering services was approximately HKD 156 million, a decrease of about 14.1% compared to HKD 181.7 million for the same period in 2019[11]. - The total revenue for the six months ended June 30, 2020, decreased by approximately HKD 22.5 million or 12.4% to about HKD 159.2 million from approximately HKD 181.7 million for the same period in 2019[21]. - Revenue from construction and engineering services decreased by approximately HKD 25.7 million or 14.1% to about HKD 156 million for the six months ended June 30, 2020, primarily due to reduced tender supply for public sector slope engineering projects[22]. - The gross profit for the six months ended June 30, 2020, was approximately HKD 5.7 million, a decrease of about 38.7% from approximately HKD 9.3 million for the same period in 2019, resulting in a gross profit margin of about 3.6%[24]. - The company reported a loss of HKD 6,023,000 for the six months ended June 30, 2020, compared to a loss of HKD 3,045,000 in the prior year, representing a 97.5% increase in loss[60]. - The total comprehensive loss for the period was HKD 6,101,000, compared to HKD 2,957,000 in the previous year, indicating a significant increase in overall expenses[60]. - The company’s basic and diluted loss per share for the period was HKD (0.36), compared to HKD (0.21) in the previous year, indicating a worsening of financial performance[60]. Revenue Segments - The revenue from public sector slope engineering projects accounted for approximately 98.6% of the total revenue in the construction and engineering services segment[11]. - The property management services recorded approximately HKD 3.2 million in revenue, with around HKD 2 million coming from continuing connected transactions[15]. - The construction and engineering services segment generated revenue of HKD 155,989 thousand, down from HKD 181,741 thousand in the previous year, indicating a decline of 14.2%[89]. - The property-related services segment generated revenue of HKD 3,180 thousand, which was not present in the previous year, indicating new revenue streams[89]. Operational Challenges and Strategies - The group has implemented competitive pricing strategies to maintain competitiveness in the slope engineering sector amid market conditions[13]. - The group has taken strict preventive measures at construction sites and offices to mitigate risks associated with the COVID-19 pandemic, which did not have a significant impact on operations during the reporting period[13]. - The group aims to benefit from the anticipated rebound in the Hong Kong property market post-pandemic, which is expected to increase demand for property management and agency services[15]. - The company anticipates challenges in the property-related services market due to the uncertain external economic and trade environment caused by the pandemic[20]. Contracts and Business Development - The group currently holds 74 construction contracts, with an uncompleted contract value of approximately HKD 493.8 million, down from HKD 595.9 million as of December 31, 2019[14]. - The group is seeking potential business opportunities in Cambodia through its subsidiary, which has obtained a Class 3 engineering license for construction services[10]. - The company plans to expand its construction and decoration business in Cambodia after obtaining construction permits, aiming to secure contracts in the region[20]. - The group is diversifying its civil engineering services by jointly bidding for various types of engineering contracts beyond slope engineering[13]. Financial Position and Cash Flow - As of June 30, 2020, the company's cash and bank balances totaled approximately HKD 154 million, an increase from approximately HKD 143.3 million as of December 31, 2019[35]. - The company's total borrowings amounted to approximately HKD 5 million in lease liabilities as of June 30, 2020, down from approximately HKD 7.4 million as of December 31, 2019[37]. - The capital-to-debt ratio as of June 30, 2020, was approximately 1.9%, a decrease from 2.8% as of December 31, 2019, primarily due to a reduction in total liabilities[37]. - The company's cash flow from operating activities for the six months ended June 30, 2020, was HKD 12,182 thousand, compared to a cash outflow of HKD 14,800 thousand for the same period in 2019, representing a significant improvement[73]. - Cash and bank balances stood at HKD 153,895,000 as of June 30, 2020, up from HKD 143,148,000 as of December 31, 2019, indicating an increase of about 7.7%[139]. Employee and Administrative Expenses - The total employee cost for the six months ended June 30, 2020, was approximately HKD 14.9 million, compared to approximately HKD 14.5 million for the same period in 2019[43]. - The total remuneration for directors and senior management for the six months ended June 30, 2020, was HKD 2,449,000, a decrease of 8.0% from HKD 2,662,000 in the same period of 2019[156]. - Administrative expenses remained stable at approximately HKD 14.6 million for the six months ended June 30, 2020, compared to about HKD 14.5 million for the same period in 2019[28]. Shareholder and Corporate Governance - As of June 30, 2020, the company’s major shareholder, Star Excellence Global Limited, holds 920,480,000 shares, representing approximately 54.79% of the total issued share capital[180]. - The company has complied with the corporate governance code as outlined in the listing rules during the six months ending June 30, 2020[190]. - All directors confirmed compliance with the standard code for securities trading during the six months ending June 30, 2020[192]. - The company did not purchase, sell, or redeem any of its listed securities during the six months ended June 30, 2020[193]. Miscellaneous Income and Other Financial Metrics - Other income increased to approximately HKD 2.8 million for the six months ended June 30, 2020, compared to about HKD 2.5 million for the same period in 2019, mainly due to an increase in miscellaneous income[27]. - The company reported a significant increase in miscellaneous income to HKD 1,002,000 from HKD 626,000 year-on-year[102]. - The company recorded a decrease in consultancy fee income to HKD 56,000 from HKD 158,000 year-on-year[102].
致浩达控股(01707) - 2020 - 中期财报