Financial Performance - For the six months ended September 30, 2021, the total revenue recognized was approximately HK$116.2 million, compared to HK$98.973 million for the same period in 2020, representing a year-over-year increase of approximately 17.9%[11][19]. - The Group's revenue increased by approximately HK$17.2 million or approximately 17.4%, from approximately HK$99.0 million for the six months ended 30 September 2020 to approximately HK$116.2 million for the six months ended 30 September 2021[23]. - Revenue for the six months ended September 30, 2021, was HK$116,187,000, compared to HK$75,992,000 for the same period in 2020, representing a 53.2% increase[56]. - The total revenue from residential properties was approximately HK$57.2 million, accounting for 49.2% of total revenue for the six months ended 30 September 2021[24]. - The total revenue from public facilities was approximately HK$50.6 million, contributing to the overall revenue growth[24]. - The increase in revenue was primarily attributed to three façade projects with relatively high contract sums that commenced during the reporting period[25]. Profitability and Margins - The gross profit decreased from approximately HK$23.0 million for the six months ended 30 September 2020 to approximately HK$7.8 million for the six months ended 30 September 2021, representing a decline of approximately HK$15.2 million[30]. - The gross profit margin decreased from approximately 23.2% for the six months ended 30 September 2020 to approximately 6.7% for the six months ended 30 September 2021[31]. - The Group's gross profit margin was adversely affected by fierce competition, rising market prices of building materials, and additional project overhead costs due to delays[30]. - The Group is facing potential pressure on gross profit margins due to rising commodity prices, inflation, and supply chain bottlenecks[17]. Expenses and Costs - Operating and administrative expenses decreased from approximately HK$12.4 million for the six months ended 30 September 2020 to approximately HK$11.5 million for the six months ended 30 September 2021, representing a decrease of approximately HK$0.9 million or 7.4%[37]. - The Group's profit before taxation for the six months ended September 30, 2021, was impacted by various costs, including staff costs and depreciation[130]. - The company incurred finance costs of HK$11,453,000 during the period[56]. Net Loss and Financial Position - The Group reported a net loss of approximately HK$3.2 million for the six months ended 30 September 2021, compared to a net profit of approximately HK$7.5 million for the same period in 2020[41]. - The current ratio decreased to approximately 3.9 times as of 30 September 2021, down from approximately 6.8 times as of 31 March 2021[41]. - The company’s net assets were reported at HK$150,047,000, reflecting a decrease from HK$173,219,000 as of March 31, 2021[63]. - Cash and cash equivalents at the end of the period were HK$51,664,000, down from HK$59,929,000 in the previous year[79]. Borrowings and Gearing - Bank borrowings amounted to approximately HK$29.5 million as of 30 September 2021, with a maximum banking facility limit of approximately HK$60.0 million[43]. - The Group's gearing ratio increased to approximately 12.7% as of 30 September 2021, compared to approximately 2.8% as of 31 March 2021[43]. - As of 30 September 2021, the Group's bank borrowings with a repayment on demand clause amounted to HK$19,020,000, an increase from HK$4,889,000 as of 31 March 2021[185]. Trade Receivables and Payables - As of 30 September 2021, trade receivables amounted to HK$26,729,000, with allowances for impairment of HK$230,000[138]. - The ageing analysis of trade receivables shows that HK$17,912,000 is within 0 to 30 days, HK$4,501,000 is within 31 to 60 days, and HK$1,380,000 is within 61 to 90 days[143]. - The current portion of trade and other payables was HK$26,431,000 as of September 30, 2021, indicating a stable financial position[169]. - The Group's trade payables typically have a credit period ranging from 0 to 30 days[174]. Contract Assets and Liabilities - As of September 30, 2021, the net contract assets amounted to HK$89,853,000, an increase of 17% from HK$76,834,000 as of March 31, 2021[152]. - The total contract assets, net of allowances for impairment, were HK$92,692,000 as of September 30, 2021, compared to HK$77,469,000 as of March 31, 2021, marking a 19% increase[153]. - The Group's contract liabilities increased from HK$4,184,000 as of March 31, 2021, to HK$4,184,000 as of September 30, 2021, reflecting ongoing project commitments[164]. Compliance and Governance - The unaudited condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standards and applicable disclosure requirements, ensuring compliance with the Listing Rules[85]. - The financial statements have not been audited or reviewed by external auditors but have been reviewed by the audit committee of the Company[85]. - The ultimate controlling shareholder of the Company is Mr. Chu Kwok Fun, indicating a clear ownership structure[84]. Staff and Operations - The total staff costs for the six months ended September 30, 2021, amounted to HK$17,485,000, an increase from HK$15,494,000 in 2020[130]. - The Group's contracts with customers are primarily fixed-price contracts, indicating a stable revenue model[104].
智中国际(06063) - 2022 - 中期财报