Financial Performance - The Group recorded a revenue of approximately HK$330.2 million, representing a 36.2% decrease compared to the corresponding period last year[19] - The Group's gross profit reached approximately HK$4.8 million, an increase of 269.2% compared to approximately HK$1.3 million from the corresponding period last year[19] - The Group's net loss decreased by approximately 21.3%, from approximately HK$4.7 million in the corresponding period last year to approximately HK$3.7 million during the Reporting Period[19] - The Group's revenue for the Reporting Period decreased by approximately HK$187.4 million or approximately 36.2%, from approximately HK$517.6 million to approximately HK$330.2 million[28] - The Group's gross profit increased by approximately HK$3.5 million or approximately 269.2%, from approximately HK$1.3 million to approximately HK$4.8 million[28] - The gross profit margin for the Reporting Period was approximately 1.4%, compared to approximately 0.3% in the corresponding period in 2020[28] - Other gains decreased by approximately HK$5.0 million or approximately 76.9%, from approximately HK$6.5 million to approximately HK$1.5 million[28] - Administrative expenses decreased by approximately HK$1.6 million or approximately 14.8%, from approximately HK$10.8 million to approximately HK$9.2 million[28] - Finance costs decreased by approximately HK$0.1 million or approximately 25.0%, from approximately HK$0.4 million to approximately HK$0.3 million[28] - The Group was awarded 11 projects with an original contract sum of approximately HK$421.7 million during the Reporting Period[23] Economic Context - Hong Kong's economy recorded a GDP growth rate of 7.8% for the first half of 2021, indicating a recovery from the pandemic[10] - The unemployment rate within the construction industry dropped to 6.8% for the three months from July to September 2021, a significant improvement from 10.9% in the same period in 2020[11] - The property market in Hong Kong is gaining momentum again, supported by low interest rates and a solid economic rebound[20] - The solid demand for housing and infrastructure is expected to boost the foundation industry as business activities return to normal[22] Cost Management - The Group managed to exercise stringent cost control, resulting in an approximately 37.0% drop in direct costs during the Reporting Period[19] - Direct costs decreased by approximately HK$190.8 million or approximately 37.0%, from approximately HK$516.2 million to approximately HK$325.4 million[28] - Total staff costs incurred during the reporting period were approximately HK$56.2 million, down from approximately HK$94.3 million in the corresponding period of 2020, representing a reduction of 40.4%[57] - The company employed a total of 194 full-time employees as of 30 September 2021, a decrease from 335 full-time employees as of 31 March 2021[57] Cash and Liquidity - As at 30 September 2021, the Group had total cash and cash equivalents and pledged bank deposits of approximately HK$96.0 million, an increase from approximately HK$60.7 million as of 31 March 2021[1] - Cash and cash equivalents at the end of the period increased to HK$73,980,000, compared to HK$49,096,000 at the end of the same period in 2020, representing a growth of 50.5%[76] - The net cash generated from operating activities was HK$43,013,000, significantly higher than HK$2,752,000 in the prior year[76] - The company had borrowings of HK$11,349,000 as of September 30, 2021, which is comparable to HK$11,387,000 as of March 31, 2021[68] Shareholder Information - As of September 30, 2021, Mr. Yip Yuk Kit holds 890,000,000 shares, representing a 74.17% shareholding in the company[185] - Fame Circle Limited, which is 100% owned by Mr. Yip, also holds 890,000,000 shares, equating to a 74.17% interest[196] - Ms. Yip Lai Ping, as the spouse of Mr. Yip, is deemed to have an interest in the same 890,000,000 shares, also representing 74.17%[196] - The shareholding structure indicates a concentrated ownership with Mr. Yip Yuk Kit and Fame Circle Limited controlling 74.17% of the company[196] Future Outlook - The expected timeline for full utilization of unutilized proceeds has been delayed to 31 December 2022 due to the impact of COVID-19[55] - The company plans to continue monitoring the developments of the COVID-19 pandemic to effectively utilize the net proceeds for long-term benefits[55] Accounting and Reporting - The financial statements are prepared in accordance with HKFRS 15 and have not been audited, highlighting the preliminary nature of the reported figures[82][83] - The adoption of amended HKFRSs effective from 1 April 2021 had no material impact on the Group's financial results[80] - The Group's management is responsible for making accounting judgments and estimates that affect the reported amounts of assets, liabilities, income, and expenses[80] Risks and Liabilities - The Group's foreign exchange rate risks are considered insignificant as all revenue and transactions are settled in Hong Kong dollars[4] - The Group has been involved in various claims and litigations, but the Directors believe these will not materially impact the financial statements[180] - No significant provisions have been made in the financial statements for potential claims or lawsuits as they are expected not to have a material impact[181]
龙昇集团控股(06829) - 2022 - 中期财报