Financial Performance - The company reported a profit attributable to owners of approximately HKD 31.0 million for the six months ended January 31, 2021, representing an increase of about 11.9% compared to HKD 27.7 million for the same period in 2020[7]. - Earnings per share for the period was approximately HKD 3.10, up about 11.9% from HKD 2.77 in the previous year[9]. - Revenue for the six months ended January 31, 2021, was HKD 262.2 million, a decrease from HKD 351.0 million in the same period of 2020, reflecting a decline of approximately 25.3%[9]. - Gross profit for the period was HKD 48.8 million, down from HKD 56.3 million in the previous year, indicating a decrease of about 13.4%[9]. - Operating profit for the period was HKD 37.0 million, slightly down from HKD 37.1 million in the previous year, indicating a marginal decrease of about 0.2%[9]. - The total comprehensive income for the period was HKD 30,957,000, compared to HKD 27,688,000 for the same period in 2020, reflecting an increase of 8.2%[25]. - The company's profit for the period attributable to owners was HKD 30,957,000, an increase of 11.8% from HKD 27,688,000 in the prior year[38]. - The cost of goods sold for the six months ended January 31, 2021, was HKD 126,359,000, down from HKD 225,552,000 in the same period of 2020, indicating a reduction of approximately 44%[37]. - The cost of revenue for the period was approximately HKD 213.4 million, a decrease of about 27.6% from approximately HKD 294.7 million in the same period last year[61]. - Gross profit decreased to approximately HKD 48.8 million, down about 13.3% from approximately HKD 56.3 million, with a gross margin of approximately 18.6%[62]. Dividends and Shareholder Returns - The board declared an interim dividend of HKD 0.015 per share, expected to be paid on April 27, 2021[8]. - The company paid dividends of HKD 10,000,000 during the period[25]. Assets and Financial Position - Total assets as of January 31, 2021, were HKD 445.4 million, compared to HKD 426.2 million as of July 31, 2020, showing an increase of about 4.9%[12]. - The company's net asset value increased to HKD 422.9 million from HKD 401.9 million, reflecting a growth of approximately 5.3%[12]. - As of January 31, 2021, the current ratio was approximately 3.7 times, up from about 3.3 times on July 31, 2020, indicating improved liquidity[70]. - The group reported an asset-to-equity ratio of approximately 17.3% as of January 31, 2021, down from about 19.1% on July 31, 2020, reflecting a stronger financial position[70]. - The group had cash and bank balances of approximately HKD 72.0 million as of January 31, 2021, an increase from about HKD 69.3 million on July 31, 2020, primarily due to operating cash inflows[70]. Government Support and Grants - The company received subsidies from the Hong Kong government's "Employment Support Scheme," contributing to the profit growth[7]. - Government grants received during the period amounted to HKD 7,142,000, compared to none in the previous year[25]. - Other income and net gains increased by approximately 406.3% to about HKD 8.1 million, mainly due to a subsidy of approximately HKD 7.1 million from the Hong Kong government's "Employment Support Scheme"[63]. Operational Highlights - Sales of heavy equipment and parts amounted to HKD 147,597,000, down 44.2% from HKD 264,775,000 in the previous year[25]. - Rental income from heavy equipment increased to HKD 109,041,000, up 30.0% from HKD 83,904,000 in the prior year[25]. - The company continues to focus on expanding its heavy equipment rental services in Hong Kong[26]. - The company remains cautiously optimistic about the heavy equipment sales and rental outlook, driven by ongoing large-scale infrastructure projects in Hong Kong[57]. - The company plans to increase its supplier base and product mix to strengthen its competitive advantage in the heavy equipment market[57]. Employee and Operational Costs - The total employee cost for the period was approximately HKD 60.6 million, compared to about HKD 41.8 million for the six months ended January 31, 2020, indicating increased investment in human resources[77]. - Administrative and other operating expenses decreased by about 3.5% to approximately HKD 19.4 million from approximately HKD 20.1 million in the previous period[64]. - Financing costs decreased significantly to HKD 1.3 million from HKD 3.6 million, a reduction of approximately 63.6%[9]. Corporate Governance and Structure - The chairman and CEO roles are not separated, as the chairman is also a founder and has been managing the group since its establishment in 2001[86]. - The board believes that the dual role of the chairman and CEO aligns with the interests of the group's business operations and management[86]. - The company has complied with all applicable corporate governance code provisions during the reporting period[86]. - The interim results and report for the period were unaudited but reviewed by the audit committee, which consists of three independent non-executive directors[95]. Risks and Uncertainties - The financial status, operational performance, and business outlook of the group may be affected by various risks and uncertainties[93]. - The group has no foreign currency hedging policy in place and will continue to monitor foreign currency risks closely[72]. Miscellaneous - The group had no major acquisitions or disposals during the period, with capital commitments of approximately HKD 1.0 million as of January 31, 2021[73]. - The group employed 240 full-time employees as of January 31, 2021, an increase from 211 employees on July 31, 2020, reflecting growth in operations[77]. - As of January 31, 2021, Generous Way Limited holds 750,000,000 shares, representing 75% of the company's issued shares[84]. - The company has not granted or agreed to grant any share options under the share option scheme since its adoption on June 30, 2017, and there are no unexercised options as of January 31, 2021[87]. - There were no significant events affecting the group after January 31, 2021, up to the report date[94]. - The company and its subsidiaries did not purchase, sell, or redeem any of the company's listed securities during the reporting period[91].
德利机械(02102) - 2021 - 中期财报