Financial Performance - For the six months ended September 30, 2020, the group's revenue decreased by approximately HKD 83.8 million or 36.7% to approximately HKD 144.3 million, compared to HKD 228.1 million for the same period in 2019[9]. - The group recorded a gross loss of approximately HKD 24.1 million for the six months ended September 30, 2020, a decrease of approximately HKD 37.6 million or 278.5% from a gross profit of approximately HKD 13.5 million for the same period in 2019[12]. - The company recorded a net loss of approximately HKD 26.6 million for the six months ended September 30, 2020, compared to a net profit of approximately HKD 3.7 million for the same period in 2019[17]. - Basic and diluted loss per share was HKD (5.53), compared to earnings of HKD 0.78 per share in the prior year[39]. - The company's pre-tax loss for the six months ended September 30, 2020, was HKD 26,552,000, compared to a profit of HKD 3,742,000 for the same period in 2019[83]. Revenue and Income - Revenue for the six months ended September 30, 2020, was HKD 144,341,000, a decrease of 36.8% compared to HKD 228,059,000 for the same period in 2019[39]. - Other income for the six months ended September 30, 2020, was approximately HKD 5.4 million, primarily from government subsidies, compared to a loss of approximately HKD 34,000 for the same period in 2019[13]. - The company recognized HKD 10,000,000 in rental concessions related to COVID-19 as other income during the reporting period[61]. - The group recognized financial support of approximately HKD 5,313,000 from the Hong Kong government under the "Employment Support Scheme" as part of COVID-19 relief measures[72]. Expenses and Costs - Administrative and other operating expenses decreased by 11.5% to approximately HKD 6.9 million for the six months ended September 30, 2020, down from HKD 7.8 million for the same period in 2019[14]. - Total financial costs for the six months ended September 30, 2020, were HKD 907,000, a decrease from HKD 1,072,000 in the same period of 2019[73]. - The total employee costs for the six months ended September 30, 2020, amounted to approximately HKD 14.9 million, a decrease from HKD 22.9 million for the same period in 2019[30]. - The overall construction costs increased due to project delays caused by the COVID-19 pandemic, leading to additional operational costs[12]. Cash Flow and Financial Position - As of September 30, 2020, the company's cash and cash equivalents totaled approximately HKD 31.5 million, an increase from approximately HKD 28.3 million as of March 31, 2020, due to a net cash inflow of approximately HKD 3.2 million from operating, investing, and financing activities[18]. - The net increase in cash and cash equivalents was HKD 3,138,000, compared to a net increase of HKD 15,203,000 in the previous year[50]. - Cash and cash equivalents at the end of the period were HKD 28,405,000, down from HKD 65,675,000 at the end of the same period in 2019[50]. - The company's debt-to-equity ratio increased from approximately 29.3% as of March 31, 2020, to approximately 34.4% as of September 30, 2020, primarily due to an increase in bank borrowings[18]. Operational Overview - The construction industry in Hong Kong continues to face challenges due to the economic downturn and the impact of the COVID-19 pandemic[6]. - The group is closely monitoring market conditions and is prepared to respond actively to any changes[10]. - The board remains confident in maintaining the group's competitiveness and has a positive outlook for the future, despite the challenging operating environment[10]. - The group will implement appropriate measures, such as cost control, to improve financial performance in response to the ongoing market conditions[10]. Corporate Governance and Compliance - The audit committee, consisting of independent non-executive directors, reviewed and approved the unaudited condensed consolidated interim financial statements for the six months ending September 30, 2020[143]. - The company confirmed compliance with all provisions of the corporate governance code during the reporting period[140]. - There were no conflicts of interest reported by directors or major shareholders in any business that competes with the group during the six months ending September 30, 2020[139]. Shareholder Information - The company holds 75% equity interest in the issued share capital, with 360,000,000 shares held by the controlling entity[127]. - The company has a significant shareholder, Kairong Holdings Limited, which holds 75% of the issued share capital, with Mr. Wen Haiyuan owning 50%, Ms. Wu Yanzhen 30%, and Mr. He Zhikang 20% of that entity[132][133]. - The group did not declare or propose any interim dividends for the six months ended September 30, 2020[81].
耀高控股(01796) - 2021 - 中期财报