Financial Performance - Consolidated revenue for the six months ended September 30, 2021, was HK$313.5 million, a decrease of 9.11% compared to HK$344.9 million in the same period of 2020[28] - Gross profit for the same period increased by 5.61% to HK$28.9 million from HK$27.3 million in 2020[28] - The loss attributable to the owners of the Company was HK$4.5 million, compared to a profit of HK$7.4 million in the previous year[28] - Earnings per share for the period was HK(0.55) cents, compared to HK1.18 cents in the same period last year[28] - The Group's revenue decreased by approximately 9.1% to approximately HK$313.5 million compared to HK$344.9 million in the same period last year, attributed to declines in both the Construction and Environmental Protection businesses[105] - Loss attributable to owners of the Company amounted to approximately HK$4,531,000, compared to a profit of approximately HK$7,360,000 in the corresponding period[105] - Basic loss per share was HK0.55 cents, a decline from earnings per share of HK1.18 cents for the same period last year[105] - Other income and gains, net, decreased from approximately HK$52.2 million to HK$23.2 million, primarily due to the gain from the disposal of certain civil engineering works[105] Construction Business - Revenue from the construction business was approximately HK$279.2 million, representing a decrease of 4.2% from HK$291.5 million in 1H2020[31] - The overall gross profit margin for the remaining construction business decreased from approximately 18.3% in 1H2020 to 11.7% for the current period[34] - The decrease in construction revenue was mainly due to a reduction in the number of sizable projects undertaken during the period[31] - The Group completed 3 projects as of September 30, 2021, with a focus on foundation works including mini-piles and grout curtain works[39] - The Group has 2 projects in progress with an aggregate contract value of approximately HK$501.30 million, all on schedule[41] - The Group's own EPC services commenced in January 2021 but have yet to generate any revenue, compared to approximately RMB13.1 million in revenue during 1H2020[71] Environmental Protection Business - Revenue from the Environmental Protection Business decreased by approximately 36.0% to approximately HK$34.2 million in 1H2021, compared to HK$53.4 million in 1H2020[42] - The Group continues to focus on environmental protection projects, including kitchen waste treatment and industrial water treatment[30] - Revenue from kitchen waste treatment amounted to HK$34.2 million in 1H2021, slightly up from HK$33.1 million in 1H2020[44] - The overall volume of kitchen waste treatment decreased due to the disposal of the Taiyuan Plant and a reduction in treatment volume at the Hefei Plant[44] - The State aims to increase kitchen waste treatment capacity to 34,400 tons/day by the end of the 13th Five-Year Plan, indicating growth opportunities in the industry[94] - The Group continues to seek partnerships to develop new technologies and explore business opportunities in kitchen waste treatment[100] Financial Position and Capital Management - The Group's administrative expenses increased by approximately 31.5% to HK$34.45 million, primarily due to share option expenses of HK$5.34 million and an increase in staff costs of HK$2.05 million[108] - Finance costs decreased by approximately 17.5% from HK$16.6 million to HK$13.7 million, attributed to a reduction in the Group's overall borrowing level[108] - Total assets decreased by approximately 34.9% to HK$705.6 million from HK$1,083.4 million as of March 31, 2021[108] - The Group's total interest-bearing loans decreased to approximately HK$119.5 million from HK$150.9 million, with a current ratio of approximately 1.27[108] - The gearing ratio improved to approximately 71.0% from 150.2% due to a decrease in overall borrowings[111] - The Group raised approximately HK$7.0 million from the issuance of convertible bonds, fully applied for general working capital[114] - An additional HK$4.0 million was raised from the issuance of 20,000,000 new shares, also fully applied for general working capital[114] - As of September 30, 2021, the Group had bank balances and cash of approximately HK$81.0 million, up from HK$66.7 million[108] - The Group pledged assets with carrying values of approximately HK$54.83 million as collateral for facilities granted[111] Shareholder Information - The company has a significant concentration of shareholding, with Mr. Zhu Yongjun being the beneficial owner of 77,000,000 shares through Jumbo Grand Enterprise Development Limited[185] - The interests in associated corporations include 100% ownership of shares in Jumbo Grand and Excellent Point by Mr. Zhu Yongjun[188] - Substantial shareholders with interests of 5% or more in the company's shares were identified, as required by the Securities and Futures Ordinance[192] - The ownership structure indicates significant control by a few shareholders, with multiple entities linked through ownership stakes[199] - The company has a concentrated shareholder base, with the top shareholders holding a significant portion of the equity[194] Strategic Initiatives - Future strategies may involve exploring new projects and expanding existing operations to improve financial performance[30] - The Group is negotiating to acquire up to 3.25% equity in TDR for a consideration of RMB26.0 million, with a total valuation of TDR at not more than RMB800 million[72] - The Group entered into a joint venture agreement to establish a JV Company with a registered capital of US$10.0 million, which will be owned 62.5% by the Group[92] - The principal activities of the JV Company include sales, manufacturing, and R&D of environmental protection equipment, with plans to bid for a land parcel in Xi'an, PRC[92] - The Group has been negotiating with creditors for rescheduling repayments and identifying potential investors for investment in the company and/or its projects[127] Share Option Scheme - The Share Option Scheme was adopted on August 26, 2014, and will remain in force until August 25, 2024, unless terminated earlier[147] - The total number of Shares that may be issued upon exercise of all options under the Share Option Scheme is 90,894,613 Shares[154] - During the Period, the Company granted 46,492,000 share options, with 16,892,000 options vesting immediately on April 19, 2021[154] - The total number of share options granted under the Share Option Scheme during the period was 56,592,000[160] - The exercise price for the options granted on April 19, 2021, was HK$0.42, with a vesting period starting from the grant date[161]
创业集团控股(02221) - 2022 - 中期财报