Revenue and Profitability - The group's revenue for the six months ended June 30, 2019, increased by approximately MOP 29.7 million or 41.7% compared to the same period in 2018, driven by a MOP 24.7 million or 36.6% increase in renovation services revenue and a MOP 3.1 million or 120.7% increase in construction services revenue[13]. - The total value of newly awarded renovation projects for the six months ended June 30, 2019, was approximately MOP 174.2 million, compared to MOP 59.1 million for the same period in 2018[12]. - The group's gross profit increased by approximately MOP 10.9 million or 101.5% to about MOP 21.7 million for the six months ended June 30, 2019, from approximately MOP 10.8 million for the same period in 2018[17]. - The gross profit margin improved from approximately 15.1% for the six months ended June 30, 2018, to about 21.5% for the same period in 2019, primarily due to an increase in the gross profit margin of renovation services[18]. - The group reported a profit attributable to owners of the company of approximately MOP 1.1 million for the six months ended June 30, 2019, compared to a loss of approximately MOP 9.9 million for the same period in 2018[25]. - Earnings per share for the six months ended June 30, 2019, was MOP 0.3 cents, an increase of MOP 2.8 cents from a loss of MOP 2.5 cents per share for the same period in 2018[26]. - The company reported a pre-tax profit of MOP 1,652,000 for the first half of 2019, a significant recovery from a loss of MOP 9,907,000 in the same period of 2018[96]. Expenses and Costs - The group's administrative expenses increased by approximately MOP 0.4 million or 2.2% to about MOP 19.7 million for the six months ended June 30, 2019, compared to approximately MOP 19.3 million for the same period in 2018[22]. - Financing costs decreased to approximately MOP 1.0 million for the six months ended June 30, 2019, from about MOP 1.4 million for the same period in 2018, due to a reduction in bank overdrafts[23]. - The total employee cost for the six months ended June 30, 2019, was MOP 25.3 million, an increase from MOP 21.8 million for the same period in 2018[51]. - The company incurred a total service cost of MOP 79,187,000 for the six months ended June 30, 2019, up from MOP 60,422,000 in the same period of 2018[152]. Assets and Liabilities - The total value of unfinished renovation and construction projects as of June 30, 2019, was approximately MOP 115.9 million, compared to MOP 46.2 million as of June 30, 2018[12]. - As of June 30, 2019, the group reported net current assets of approximately MOP 111.0 million, an increase of about MOP 0.6 million from MOP 110.4 million as of December 31, 2018[30]. - The group's cash and bank balances stood at MOP 46.6 million as of June 30, 2019, down from MOP 51.9 million as of December 31, 2018[31]. - Interest-bearing bank borrowings amounted to MOP 56.7 million as of June 30, 2019, compared to MOP 61.7 million as of December 31, 2018[31]. - The total liabilities increased to MOP 122,726,000 from MOP 112,637,000, reflecting a rise of about 8.9%[89]. - The total current liabilities stood at MOP 107,102,000, slightly higher than MOP 106,269,000 in the previous period, indicating a 0.78% increase[86]. Financial Ratios and Position - The current ratio remained stable at 2.0 as of June 30, 2019, consistent with the ratio as of December 31, 2018[32]. - The debt-to-equity ratio decreased to 0.26 as of June 30, 2019, from 0.28 as of December 31, 2018, primarily due to the repayment of bank loans[32]. - The group maintained a solid liquidity position with current assets of MOP 218.1 million and current liabilities of MOP 107.1 million as of June 30, 2019[32]. Business Strategy and Expansion - The group plans to expand its business into Southeast Asia, capitalizing on the significant demand in the renovation engineering market in that region[56]. - The group is pursuing diversification beyond its core renovation engineering business, exploring opportunities in the restaurant and retail sectors[57]. - The group believes that the development of the Guangdong-Hong Kong-Macao Greater Bay Area will promote economic integration and boost the renovation and construction industries[57]. Legal and Risk Management - The group faces currency risk primarily from procurement of raw materials and sales in currencies other than its functional currency, mainly HKD and RMB[42]. - The group has ongoing litigation related to a construction project, with potential claims amounting to approximately MOP 49.0 million and MOP 12.8 million from the Macau government[36]. - The group has implemented a credit risk management strategy, including the hiring of professional valuers to assess the recoverability of trade receivables[48]. Shareholder Information - The company had total equity interests of 300,000,000 shares, representing a 75% ownership stake in SHKMCL[67]. - Major shareholders include Mr. Lei Ying Man with 50%, Mr. Lei Ming Shan with 30%, and Ms. Lei Ying Wai with 20% ownership in SHKMCL[68]. - The company has not granted any share options under its share option scheme since its adoption on January 18, 2017[69]. Compliance and Governance - The company has complied with all applicable code provisions of the Corporate Governance Code during the reporting period[74]. - The audit committee reviewed the accounting principles and policies adopted by the group for the six months ended June 30, 2019[76]. Accounting Standards and Financial Reporting - The financial statements for the six months ended June 30, 2019, were prepared in accordance with Hong Kong Accounting Standard 34, indicating compliance with local regulations[112]. - The adoption of Hong Kong Financial Reporting Standard 16 on leases took effect on January 1, 2019, impacting the accounting treatment of leases[114]. - The company will continue to classify investment properties at fair value, including leased land and buildings held for rental income[132].
黎氏企业(02266) - 2019 - 中期财报