Revenue Performance - Revenue for the six months ended 30 September 2020 amounted to approximately HK$129,963,000, an increase of 20.5% compared to HK$107,861,000 for the same period in 2019[14] - The Group's total revenue increased by approximately HK$22,102,000, or approximately 20.5%, from approximately HK$107,861,000 for the six months ended 30 September 2019 to approximately HK$129,963,000 for the Reporting Period[22] - Revenue from foundation construction contributed approximately 70.7% of the total revenue during the Reporting Period, down from 84.5% in the six months ended 30 September 2019[19] - Revenue from ground investigation services increased by approximately 113.1%, from approximately HK$16,035,000 for the six months ended 30 September 2019 to approximately HK$34,175,000 for the Reporting Period[27] - Revenue from financial services amounted to approximately HK$1,890,000 for the Reporting Period, compared to approximately HK$574,000 for the six months ended 30 September 2019[30] - Revenue from trading of beauty and skin care products was approximately HK$2,040,000 for the Reporting Period, up from approximately HK$110,000 in the six months ended 30 September 2019[31] - For the six months ended September 30, 2020, revenue from construction contracts was HK$91,858,000, an increase from HK$91,142,000 in the same period of 2019[164] - The Group's financial services segment generated revenue of HK$1,890,000, up from HK$574,000, indicating a growth of approximately 229%[164] Profit and Loss - Loss attributable to equity shareholders for the Reporting Period was approximately HK$5,711,000, a decrease from HK$18,907,000 in the same period of 2019[14] - Basic and diluted loss per share for the Reporting Period was approximately HK cents 0.59, compared to HK cents 1.97 for the six months ended 30 September 2019[14] - The Group recorded a net loss of approximately HK$5,711,000, a decrease from approximately HK$18,907,000 for the corresponding period in 2019[54] - Total comprehensive income for the period attributable to equity shareholders was HK$293,000, compared to no comprehensive income in the previous year[96] - The loss for the period was HK$18,907,000, indicating a challenging financial environment[105] - Consolidated loss before taxation decreased to HK$4,376,000 from HK$19,174,000, reflecting a reduction of approximately 77%[196] Gross Profit and Margins - Gross profit for the Group was approximately HK$23,911,000 for the Reporting Period, compared to approximately HK$672,000 for the six months ended 30 September 2019[31] - Gross profit margin for the foundation construction segment was approximately 4.3% for the Reporting Period, improving from a gross loss margin of approximately 5.9% in the previous period[34] - Gross profit for the ground investigation services segment increased by approximately 185.6%, from approximately HK$5,616,000 to approximately HK$16,038,000[35] - The gross profit margin for ground investigation services improved from approximately 35.0% to approximately 46.9% during the Reporting Period[35] - Gross profit from the Group's financial service was approximately HK$1,888,000, with a gross profit margin of approximately 99.9% for the Reporting Period[40] - Gross profit from the Group's trading business was approximately HK$2,040,000, compared to approximately HK$110,000 for the six months ended 30 September 2019[40] Expenses and Costs - General and administrative expenses increased by approximately 13.7% to approximately HK$27,040,000 for the Reporting Period[44] - Finance costs increased to approximately HK$5,212,000 from approximately HK$4,074,000 for the six months ended 30 September 2019[50] - The total remuneration cost incurred by the Group for the Reporting Period was approximately HK$31,622,000, compared to approximately HK$30,300,000 for the six months ended September 30, 2019, reflecting a 4.4% increase[88] - Unallocated head office and corporate expenses rose to HK$9,158,000 from HK$6,347,000, which may require further management attention[196] Assets and Liabilities - As of September 30, 2020, the Group's total interest-bearing borrowings increased to approximately HK$236,345,000 from HK$221,293,000 as of March 31, 2020, representing an increase of about 6.5%[61] - The Group's net current assets decreased to approximately HK$131,236,000 as of September 30, 2020, down by approximately HK$64,727,000 from HK$195,963,000 as of March 31, 2020[62] - The Group's current liabilities increased to approximately HK$291,364,000 as of September 30, 2020, an increase of approximately HK$23,470,000 from HK$267,894,000 as of March 31, 2020[62] - The Group's cash and bank balances decreased to approximately HK$136,907,000 as of September 30, 2020, down from approximately HK$228,720,000 as of March 31, 2020[66] - The total equity as of September 30, 2020, was HK$183,062,000, down from HK$207,909,000 as of March 31, 2020, reflecting a decrease of 12.0%[102] - As of September 30, 2020, the net assets decreased to HK$183,062,000 from HK$207,909,000 as of March 31, 2020, representing a decline of approximately 11.9%[102] Cash Flow - The net cash used in operating activities was approximately HK$18,662,000 during the Reporting Period, primarily for trading beauty and skin care products[67] - The net cash used in investing activities was approximately HK$62,360,000, mainly related to payments for financial assets and an acquisition[67] - The net cash used in operating activities for the six months ended September 30, 2020, was HK$18,662,000, compared to HK$37,518,000 for the same period in 2019, indicating an improvement of 50.3%[109] - The company reported a net cash used in investing activities of HK$62,360,000 for the six months ended September 30, 2020, compared to HK$6,517,000 in the same period of 2019, showing a significant increase in cash outflow[109] - The cash and cash equivalents at the end of the period were HK$136,907,000, down from HK$293,874,000 at the end of the same period in 2019, a decrease of 53.4%[109] Strategic Initiatives and Future Outlook - The Group will assess potential investment opportunities in high-quality companies in emerging industries in China to maintain stable development[56] - The Group's foundation construction and ground investigation service sectors are relatively insulated from the impacts of COVID-19[56] - The company is focusing on expanding its reportable segments, particularly in construction and financial services, which showed promising asset growth[193] - The company aims to enhance its market presence through strategic initiatives in new product development and technology advancements[196] - Future outlook remains cautiously optimistic, with management emphasizing the need for continued operational efficiency and cost management strategies[196] Corporate Governance and Compliance - The unaudited interim financial information was approved for issue by the Board on November 25, 2020[111] - The Group's audit committee has reviewed the unaudited condensed consolidated interim financial information[1] - The Group has not adopted any financial instruments for hedging purposes during the Reporting Period[66] - The Group has not applied any new standards or interpretations that are not yet effective for the current period, and the application of new amendments has had no material impact on financial performance[154] Employee and Workforce - As of September 30, 2020, the Group had 137 full-time employees, a decrease from 143 employees as of March 31, 2020[87] Segment Information - The Group manages its businesses by four reportable segments: foundation construction, ground investigation services, financial services, and trading of beauty and skin care products[167] - Reportable segment revenue increased to HK$129,963,000 from HK$107,861,000, representing a growth of approximately 20.5% year-over-year[196] - Reportable segment profit improved to HK$4,531,000 compared to a loss of HK$12,827,000 in the previous year, indicating a significant turnaround[196] - Reportable segment assets totaled HK$631,228,000, with the beauty and skin care products segment holding HK$222,832,000[191] - Reportable segment liabilities as of the same date were HK$588,633,000, with the financial services segment accounting for HK$346,460,000[191]
宏基集团控股(01718) - 2021 - 中期财报