Financial Performance - The company's revenue for the six months ended September 30, 2020, was approximately HKD 125.8 million, an increase of about 30.7% from approximately HKD 96.3 million in the corresponding period of 2019[11]. - The gross profit decreased to approximately HKD 10.5 million, down about 59.3% from approximately HKD 25.9 million in the same period last year, resulting in a gross margin drop from 26.9% to 8.4%[18]. - Direct costs increased to approximately HKD 115.3 million, a rise of about 63.8% from approximately HKD 70.4 million in the previous year[14]. - The company's profit attributable to owners decreased to HKD 0.9 million, down from HKD 9.9 million in the same period of 2019, a decline of HKD 9.0 million[23]. - Profit before tax for the period was HKD 1,347,000, a decline of 87.8% from HKD 11,079,000 in the previous year[80]. - Net profit for the period was HKD 878,000, a decrease of 90.2% compared to HKD 8,994,000 in the same period last year[80]. - Total comprehensive income for the period was HKD 3,277,000, down 45.9% from HKD 6,054,000 in the prior year[83]. - The company reported a profit of HKD 988,000 for the period, a decrease from HKD 9,937,000 in the same period last year, representing a decline of approximately 90%[98]. Revenue Breakdown - The revenue from steel and metal engineering services increased to approximately HKD 95.8 million, up about 15.4% from approximately HKD 83.0 million in the previous year[12]. - The revenue from construction services was approximately HKD 20.6 million, with no corresponding revenue in the previous year[13]. - Revenue from steel and metal engineering services was HKD 95,830,000, up from HKD 83,028,000, representing a growth of 15.5%[118]. - Revenue from construction services was HKD 20,622,000, with no revenue reported in the previous year[118]. - Sales of steel and metal products decreased to HKD 9,357,000 from HKD 13,236,000, a decline of 29.1%[118]. Expenses and Costs - Administrative expenses rose to approximately HKD 16.4 million, an increase of about 12.6% from approximately HKD 14.5 million in the previous year[21]. - Financing costs slightly decreased to HKD 892,000 from HKD 894,000 year-on-year[122]. - The company incurred a net cash outflow from investing activities of HKD 13,211,000, compared to a net inflow of HKD 41,230,000 in the previous year, highlighting a shift in investment strategy[99]. Assets and Liabilities - As of September 30, 2020, the group's debt-to-equity ratio was 21.5%, down from 25.9% as of March 31, 2020[24]. - The group's total bank borrowings were approximately HKD 54.3 million as of September 30, 2020, compared to HKD 64.4 million as of March 31, 2020[28]. - The group's cash and bank balances totaled approximately HKD 42.1 million as of September 30, 2020, down from HKD 60.6 million as of March 31, 2020[27]. - The net current assets of the group increased to approximately HKD 157.4 million as of September 30, 2020, from approximately HKD 144.0 million as of March 31, 2020[27]. - The company has a total equity of HKD 248,221,000 as of September 30, 2020, compared to HKD 252,367,000 as of the same date in 2019, showing a slight decrease of approximately 1.5%[98]. - The company’s total liabilities decreased to HKD 85,700,000 from HKD 86,688,000 year-over-year, indicating a reduction in financial obligations[98]. Strategic Developments - The company has expanded its business into the People's Republic of China, providing construction services and real estate development[10]. - The group plans to use the remaining net proceeds for various projects, including expanding its workforce in Hong Kong and China, with a total planned expenditure of HKD 33.7 million[47]. - The company has plans for market expansion and new product development, although specific details were not disclosed in the report[100]. - The company is actively exploring potential acquisitions to enhance its market position and operational capabilities[100]. Shareholder Information - The group did not declare an interim dividend for the period, compared to HKD 0.003 per share for the same period last year[39]. - The company declared and paid no dividends during the period, maintaining cash reserves for future investments[99]. - As of September 30, 2020, major shareholders, HY Steel, held 570,000,000 shares, representing approximately 74.26% of the company's total shares[60]. Operational Challenges - The group faced challenges due to the COVID-19 pandemic, impacting its operational performance and necessitating a focus on cost control and efficiency improvements[40]. Auditor and Compliance - The company appointed a new auditor, Tianzhi Hong Kong CPA Limited, effective December 18, 2020, following the resignation of Deloitte due to a disagreement over audit fees[56]. - The company has adopted a standard code for regulating directors' securities trading, ensuring compliance during the reporting period[67].
恒益控股(01894) - 2021 - 中期财报