艾硕控股(08341) - 2020 - 中期财报

Financial Highlights Performance Overview For the six months ended September 30, 2019, the Group's revenue grew by 90.7% to HKD 103 million, while loss attributable to owners slightly increased to HKD 5.5 million, with no interim dividend recommended 2019 Interim Results Summary | Metric | For the six months ended Sep 30, 2019 | For the six months ended Sep 30, 2018 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue (HKD Million) | 103.0 | 54.0 | +90.7% | | Loss Attributable to Owners (HKD Million) | 5.5 | 5.3 | +3.8% | | Loss Per Share (HKD Cents) | 2.76 | 2.63 | +4.9% | | Proposed Dividend | Not Distributed | N/A | - | Unaudited Condensed Consolidated Financial Statements Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended September 30, 2019, revenue grew 90.7% to HKD 103 million and gross profit by 81.9%, but increased administrative expenses led to a period loss of HKD 5.514 million, similar to prior year Consolidated Statement of Profit or Loss Summary (For the six months ended September 30) | Item | 2019 (HKD Thousand) | 2018 (HKD Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 102,973 | 53,975 | +90.7% | | Gross Profit | 9,214 | 5,066 | +81.9% | | Administrative Expenses | (12,710) | (8,359) | +52.1% | | Loss Before Tax | (5,514) | (5,263) | +4.8% | | Loss for the Period | (5,514) | (5,263) | +4.8% | | Basic Loss Per Share (HKD Cents) | (2.76) | (2.63) | +4.9% | Consolidated Statement of Financial Position As of September 30, 2019, the Group shifted from net current assets to net current liabilities of HKD 5.848 million, with total equity turning into net liabilities of HKD 3.409 million due to increased receivables and contract liabilities Consolidated Statement of Financial Position Summary | Item | As at Sep 30, 2019 (HKD Thousand) | As at Mar 31, 2019 (HKD Thousand) | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 7,839 | 1,370 | | Current Assets | 87,776 | 73,892 | | Liabilities and Equity | | | | Current Liabilities | 93,624 | 73,056 | | Non-current Liabilities | 5,400 | 101 | | Net Position | | | | Net Current (Liabilities)/Assets | (5,848) | 836 | | Net (Liabilities)/Assets | (3,409) | 2,105 | | Total Equity | (3,409) | 2,105 | Consolidated Statement of Changes in Equity For the six months ended September 30, 2019, the Group's total equity decreased from HKD 2.105 million to negative HKD 3.409 million due to a HKD 5.514 million loss for the period - Loss for the period and total comprehensive expenses amounted to HKD 5.514 million, leading to a decrease in total equity from HKD 2.105 million to negative HKD 3.409 million[11] Consolidated Statement of Cash Flows For the six months ended September 30, 2019, cash from operating activities shifted from a HKD 10.108 million net inflow to a HKD 7.772 million net outflow, with period-end cash decreasing to HKD 7.658 million Consolidated Statement of Cash Flows Summary (For the six months ended September 30) | Item | 2019 (HKD Thousand) | 2018 (HKD Thousand) | | :--- | :--- | :--- | | Net Cash (Used in)/Generated from Operating Activities | (7,772) | 10,108 | | Net Cash Generated from Investing Activities | 774 | 5,066 | | Net Cash Generated from/(Used in) Financing Activities | 5,387 | (2,057) | | Net (Decrease)/Increase in Cash and Cash Equivalents | (1,611) | 13,117 | | Cash and Cash Equivalents at End of Period | 7,658 | 13,067 | Notes to the Condensed Consolidated Financial Statements Company Information and Basis of Preparation The Company, an investment holding firm providing housing improvement services in Hong Kong, prepares financial statements on a going concern basis despite losses and net current liabilities, supported by liquidity improvement measures and the adoption of HKFRS 16 - The Company is an investment holding company, with its subsidiaries primarily engaged in interior fitting-out, renovation, and alteration and addition works in Hong Kong[15] - Despite recording a net loss and net current liabilities, the directors deem it appropriate to prepare financial statements on a going concern basis, supported by bank financing, potential fundraising activities, and cost control plans[19][20][21] - The Group adopted Hong Kong Financial Reporting Standard 16 "Leases" effective April 1, 2019, recognizing right-of-use assets and corresponding lease liabilities, without restating comparative information[24][26] Revenue and Segment Information All Group revenue originates from Hong Kong, primarily from renovation projects which surged, while fitting-out projects declined; customer concentration is high, with Client 2 contributing approximately 65% of total revenue Segment Revenue (For the six months ended September 30, 2019) | Segment | 2019 (HKD Thousand) | 2018 (HKD Thousand) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Fitting-out Projects | 25,612 | 37,184 | -31.1% | | Renovation Projects | 77,361 | 16,791 | +360.7% | | Total | 102,973 | 53,975 | +90.7% | - All of the Group's revenue is derived from Hong Kong operations, and all non-current assets are located in Hong Kong[31][35] - During the period, reliance on major clients was high, with revenue from Client 2 accounting for over 60% of total revenue[36] Management Discussion and Analysis Business and Financial Review During the period, revenue grew 90.7% to HKD 103 million, driven by renovation projects, but increased administrative expenses from shareholder disputes offset gross profit growth, keeping loss attributable to owners at HKD 5.5 million - During the period, the Group was awarded 9 projects with a total contract value of approximately HKD 143.8 million, and successfully acquired new clients including renowned developers[51] - Revenue growth was primarily driven by renovation projects, with their income increasing by 360.7% year-on-year, while fitting-out project income decreased by 31.2%[52][54] - Administrative expenses increased by 51.2% year-on-year, primarily due to increased professional fees incurred from shareholder disputes[57] - Due to increased administrative expenses offsetting gross profit growth, loss attributable to owners of the Company remained largely flat compared to the prior year, at approximately HKD 5.5 million[59] Prospects and Outlook The Group will continue focusing on Hong Kong renovation and fitting-out projects, especially in entertainment and leisure, and seek mainland collaborations, while monitoring economic uncertainties from recent social protests - The Group's competitive advantages include stable relationships with key clients and suppliers, integrated project execution capabilities, and an experienced management team[60] - Future focus will remain on the Hong Kong market, particularly renovation projects for entertainment and leisure facilities, while seeking collaboration opportunities with mainland developers[60] - Management views recent protest activities in Hong Kong as a major uncertainty factor for future economic development and will closely monitor them[60] Liquidity, Financial Resources and Capital Management As of September 30, 2019, the Group faced liquidity pressure with net current liabilities of HKD 5.8 million and a gearing ratio of 13.6 times, relying on operations, bank borrowings, and shareholder contributions for working capital Liquidity Position | Metric | As at Sep 30, 2019 | As at Mar 31, 2019 | | :--- | :--- | :--- | | Net Current (Liabilities)/Assets (HKD Million) | (5.8) | 0.1 | | Bank Balances and Cash (HKD Million) | 7.7 | 9.3 | | Gearing Ratio (Times) | 13.6 | 17.7 | - The Group has adopted a prudent financial management approach, managing risks through continuous credit assessment and close monitoring of liquidity position[63] Business Objectives and Use of Proceeds Of the HKD 40.6 million net listing proceeds, HKD 35.7 million was utilized for business development and office expansion; however, property acquisition was delayed due to shareholder disputes, resulting in a HKD 0.8 million deposit forfeiture - The original plan to acquire Hong Kong property was delayed due to shareholder disputes, and approximately HKD 0.8 million in deposit paid has been forfeited[73] Use of Placing Proceeds (HKD Million) | Purpose | Adjusted Net Proceeds Utilized | Actual Utilization | | :--- | :--- | :--- | | Further Development of the Group's Contracting Business | 22.8 | 22.8 | | Acquisition of Hong Kong Property | 5.7 | 0.8 | | Expansion of Hong Kong Office | 1.7 | 1.7 | | Renovation of Hong Kong Office | 1.9 | 1.9 | | Purchase of Motor Vehicles | 1.2 | 1.2 | | Further Strengthening of the Group's Internal Team | 3.2 | 3.2 | | General Working Capital | 4.1 | 4.1 | | Total | 40.6 | 35.7 | Other Disclosures Directors' and Shareholders' Interests As of September 30, 2019, Executive Director Mr. Chan Siu Chung beneficially owned 13.25% of shares, while major shareholder W & Q Investment Limited (controlled by Mr. Liu Cheung Kin) held 26.25% - Director Mr. Chan Siu Chung holds 13.25% of the Company's shares[76] - Major shareholder Mr. Liu Cheung Kin (through W & Q Investment Limited) holds 26.25% of the Company's shares[78] Corporate Governance The Company adopted a share option scheme but granted no options, largely complying with corporate governance, though deviations exist in Chairman/CEO roles and board meeting notices; the Audit and Risk Management Committee reviewed the interim financial statements - The Company has adopted a share option scheme, but no share options have been granted since its adoption[80] - The Company has deviations in corporate governance, including the non-separation of Chairman and Chief Executive Officer roles, and board meeting notice periods not strictly adhering to the Code's recommended 14 days[89][90] - The Audit and Risk Management Committee has reviewed the Group's accounting principles, practices, and the unaudited condensed consolidated financial statements for the six months ended September 30, 2019[93]