Financial Performance - Total revenue increased by approximately MOP 42.6 million or 31.1% to approximately MOP 179.6 million for the six months ended June 30, 2021, compared to MOP 137.0 million for the same period in 2020[15]. - The group recorded a profit of approximately MOP 13.1 million for the six months ended June 30, 2021, compared to MOP 14.5 million for the same period in 2020[14]. - Gross profit increased by approximately MOP 2.2 million to approximately MOP 33.4 million for the six months ended June 30, 2021, with a gross margin of approximately 18.6%, down from 22.8% for the same period in 2020[19]. - Profit for the six months ended June 30, 2021, was approximately 13.1 million MOP, a decrease of about 1.4 million MOP or 9.7% compared to approximately 14.5 million MOP for the same period in 2020[27]. - The company reported a profit attributable to owners of MOP 13,066,000, compared to MOP 14,502,000 in the previous year, indicating a decrease of 9.9%[84]. - The pre-tax profit for the six months ended June 30, 2021, was MOP 15,153,000, a decrease of 12.5% from MOP 17,327,000 in the same period of 2020[110]. Revenue and Costs - Direct costs increased by approximately MOP 40.5 million or 38.3% to approximately MOP 146.2 million for the six months ended June 30, 2021, from approximately MOP 105.7 million for the same period in 2020[18]. - Other income decreased from approximately 1.3 million MOP for the six months ended June 30, 2020, to about 0.2 million MOP for the same period in 2021, primarily due to government subsidies received in 2020 amounting to approximately 1.2 million MOP[20]. - Administrative expenses increased from approximately 14.4 million MOP for the six months ended June 30, 2020, to about 15.9 million MOP for the same period in 2021, representing approximately 10.5% and 8.9% of total revenue respectively[21]. - Financing costs rose from approximately 717,000 MOP for the six months ended June 30, 2020, to about 2.1 million MOP for the same period in 2021, an increase of approximately 1.4 million MOP due to higher average outstanding bank borrowings[25]. - Income tax expenses decreased from approximately 2.8 million MOP for the six months ended June 30, 2020, to about 2.1 million MOP for the same period in 2021, with effective tax rates of approximately 16.3% and 13.8% respectively[26]. Assets and Liabilities - Cash and cash equivalents totaled approximately 52.0 million MOP as of June 30, 2021, a decrease of about 40.8% from approximately 87.8 million MOP as of December 31, 2020[30]. - The debt-to-equity ratio as of June 30, 2021, was approximately 26.2%, down from 27.5% as of December 31, 2020, due to a slight decrease in total debt from approximately 84.1 million MOP to about 83.7 million MOP[32]. - Total assets as of June 30, 2021, were MOP 320,816,000, an increase from MOP 306,329,000 at the end of 2020[86]. - Current assets increased significantly to MOP 6,894,000 from MOP 3,936,000, indicating improved liquidity[86]. - Trade receivables as of June 30, 2021, amounted to MOP 121,638,000, a decrease from MOP 165,517,000 as of December 31, 2020[121]. - Trade and other payables totaled MOP 48,740,000 as of June 30, 2021, a decrease of 42.6% from MOP 84,985,000 as of December 31, 2020[125]. Business Operations - The group completed 16 renovation projects and was awarded 25 renovation projects, all located in Macau, for the six months ended June 30, 2021[14]. - The group aims to diversify its business by exploring lithium resources, lithium battery technology, and smart garage business[13]. - The group continues to strengthen business relationships with major licensed gaming operators in Macau, which are crucial for long-term success[10]. - The group plans to provide design assistance and procurement of renovation materials to maintain its competitive advantage[13]. - The company's clients primarily include hotel and entertainment operators in Macau, with contracts mainly being fixed-price agreements[104]. Shareholder Information - As of June 30, 2021, Mr. Li, the controlling shareholder, held 337,500,000 shares, representing approximately 67.5% of the issued share capital[53]. - Major shareholders include Chiu Yu Limited with 337,500,000 shares (67.5%) and Ng Shuk Fan with the same number of shares (67.5%) as spouse equity[69]. - The company has a share option plan in place to incentivize directors and eligible employees, which is subject to specific terms and conditions[58]. - The share option scheme approved on March 18, 2019, allows for the granting of options to eligible participants to subscribe for shares, with a maximum of 50,000,000 shares, equivalent to 10% of the issued shares as of the report date[62]. - The board of directors did not recommend the payment of an interim dividend for the six months ended June 30, 2021, considering the overall operating performance, financial condition, and capital requirements of the group[50]. Corporate Governance - The audit committee consists of three independent non-executive directors who reviewed the unaudited interim results for the six months ended June 30, 2021[81]. - The company is committed to maintaining high levels of corporate governance to protect shareholder interests[77]. - The company has adopted the Corporate Governance Code as per the Hong Kong Stock Exchange listing rules[77]. - The board believes that the current arrangement of having the same individual serve as both chairman and CEO does not impair the balance of power and authority[77]. Economic Outlook - The Macau economy is expected to remain unstable in 2021 due to the impact of the COVID-19 pandemic, with recovery anticipated to be slow[11]. - The group believes that the economic development opportunities in Macau will remain significant despite short-term challenges[13].
伟鸿集团控股(03321) - 2021 - 中期财报