艾硕控股(08341) - 2022 - 中期财报

Financial Highlights For the six months ended September 30, 2021, the Group's revenue significantly increased by 78.0% year-on-year, while loss attributable to equity holders of the Company narrowed considerably, with a corresponding reduction in loss per share, and the Board decided not to declare an interim dividend | Metric | For the six months ended Sep 30, 2021 | For the six months ended Sep 30, 2020 | | :--- | :--- | :--- | | Revenue | Approx. HKD 76.0 million | Approx. HKD 42.7 million | | Loss attributable to equity holders of the Company | Approx. HKD 2.0 million | Approx. HKD 7.3 million | | Loss per share | Approx. HKD 0.26 cents | Approx. HKD 3.63 cents | | Dividend | Not recommended for distribution | N/A | Unaudited Condensed Consolidated Financial Statements Consolidated Statement of Profit or Loss During the reporting period, the Group's revenue increased by 78% year-on-year, and gross profit surged over 5 times to HKD 9.7 million; despite an increase in administrative expenses, finance costs significantly decreased, leading to a substantial narrowing of loss for the period from HKD 7.26 million in the prior period to HKD 2.04 million | Item (HKD thousands) | For the six months ended Sep 30, 2021 | For the six months ended Sep 30, 2020 | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 76,068 | 42,737 | +78.0% | | Gross Profit | 9,664 | 1,507 | +541.3% | | Administrative expenses | (11,749) | (9,353) | +25.6% | | Finance costs | (100) | (1,301) | -92.3% | | Loss before tax | (2,040) | (7,264) | -71.9% | | Loss per share (HK cents) | (0.26) | (3.63) | N/A | Consolidated Statement of Financial Position As of September 30, 2021, the Group's net assets were HKD 17.9 million, a slight decrease from HKD 19.43 million as of March 31, 2021; current assets saw a significant increase in contract assets and a decrease in trade receivables, while current liabilities slightly increased, primarily due to contract liabilities and new advances on trade receivables with recourse | Item (HKD thousands) | Sep 30, 2021 | Mar 31, 2021 | Change | | :--- | :--- | :--- | :--- | | Non-current assets | 2,014 | 3,355 | -40.0% | | Current assets | 87,861 | 84,935 | +3.4% | | Current liabilities | (71,971) | (68,432) | +5.2% | | Net assets | 17,904 | 19,425 | -7.8% | | Bank balances and cash | 2,950 | 7,843 | -62.4% | Consolidated Statement of Changes in Equity During the reporting period, the Group's total equity decreased from HKD 19.43 million at the beginning of the period to HKD 17.9 million at the end, primarily due to a loss of HKD 2.04 million for the period, partially offset by equity-settled share-based payments of HKD 0.52 million - Total equity decreased by HKD 1.521 million during the period, primarily comprising a loss for the period of HKD 2.041 million and the recognition of equity-settled share-based payments of HKD 0.52 million[10] Consolidated Statement of Cash Flows During the reporting period, the Group's net decrease in cash and cash equivalents was HKD 4.89 million; net cash outflow from operating activities was HKD 8.21 million, higher than the prior period; investing activities generated a net inflow of HKD 0.899 million; and financing activities shifted from a net outflow in the prior period to a net inflow of HKD 2.41 million, with an ending cash balance of HKD 2.95 million | Item (HKD thousands) | For the six months ended Sep 30, 2021 | For the six months ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash used in operating activities | (8,205) | (4,034) | | Net cash generated from investing activities | 899 | 1,771 | | Net cash generated from / (used in) financing activities | 2,413 | (25,268) | | Net decrease in cash and cash equivalents | (4,893) | (27,531) | | Cash and cash equivalents at end of period | 2,950 | 7,251 | Notes to the Financial Statements Company Information and Basis of Preparation The Company is an investment holding company incorporated in the Cayman Islands with its principal place of business in Hong Kong; its subsidiaries primarily engage in housing improvement solution services in Hong Kong, including interior fitting-out works for new buildings and renovation works for existing buildings, with financial statements prepared in accordance with Hong Kong Financial Reporting Standards - The Company is an investment holding company, with its subsidiaries primarily engaged in housing improvement solution services in Hong Kong, covering interior fitting-out works for new commercial and residential buildings and renovation, alteration, and addition works for existing commercial buildings[14] - These interim financial statements are prepared in accordance with Hong Kong Financial Reporting Standards, Hong Kong Generally Accepted Accounting Principles, and the GEM Listing Rules, with accounting policies consistent with those adopted in the previous annual report[15] Revenue and Segment Information The Group's revenue is entirely derived from Hong Kong and is categorized into "fitting-out projects" and "renovation projects" operating segments; during the reporting period, total revenue was HKD 76.07 million, with fitting-out projects contributing HKD 67.2 million and renovation projects contributing HKD 8.87 million, both achieving significant growth, and there is also a concentration risk with two major customers contributing the majority of revenue | Revenue Segment (HKD thousands) | For the six months ended Sep 30, 2021 | For the six months ended Sep 30, 2020 | Y-o-Y Growth | | :--- | :--- | :--- | :--- | | Fitting-out projects | 67,199 | 37,697 | +78.3% | | Renovation projects | 8,869 | 5,040 | +76.0% | | Total | 76,068 | 42,737 | +78.0% | - All of the Group's revenue is derived from Hong Kong operations, and all non-current assets are located in Hong Kong[22] - During the reporting period, Customer 2 contributed HKD 45.48 million in revenue, and Customer 1 contributed HKD 29.68 million in revenue, indicating a high customer concentration[23] Other Significant Financial Notes During the reporting period, finance costs significantly decreased from HKD 1.3 million in the prior period to HKD 0.1 million, primarily due to a reduction in interest on other borrowings; no tax provision was made as there was no assessable profit for the period, and the Board did not recommend an interim dividend - Finance costs significantly decreased from HKD 1.301 million in the prior period to HKD 0.1 million, primarily due to a reduction in interest expenses on other borrowings from HKD 1.096 million to zero[26] - No provision for Hong Kong profits tax was made as the Group had no assessable profit during the reporting period[28] - The Board did not recommend the payment of any dividend for the period[29] Trade and Other Receivables and Payables As of the end of the reporting period, net trade receivables were HKD 24.38 million, a significant decrease from HKD 42.79 million at the beginning of the period; trade payables were HKD 2.69 million, also a notable decrease from HKD 8.58 million at the beginning of the period | Item (HKD thousands) | Sep 30, 2021 | Mar 31, 2021 | | :--- | :--- | :--- | | Trade receivables (net of provision) | 24,381 | 42,785 | | Trade payables | 2,688 | 8,583 | Management Discussion and Analysis Business and Financial Review During the reporting period, the Group demonstrated strong business performance, with total revenue increasing by 78.2% year-on-year to HKD 76.1 million, primarily due to larger contracts awarded in the previous fiscal year; gross profit grew over 5 times, and loss narrowed from HKD 7.3 million to HKD 2.0 million, with 4 new projects awarded totaling approximately HKD 31.9 million in contract value - During the period, the Company submitted tenders totaling approximately HKD 1.766 billion and was successfully awarded 4 projects with a total contract value of approximately HKD 31.9 million[35] Financial Performance (HKD thousands) | Financial Performance (HKD thousands) | For the six months ended Sep 30, 2021 | For the six months ended Sep 30, 2020 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | 76,100 | 42,700 | +78.2% | | Gross Profit | 9,700 | 1,500 | +546.7% | | Loss attributable to owners of the Company | 2,000 | 7,300 | -72.6% | - The primary reason for revenue growth was the significantly higher number of tenders awarded (approximately HKD 412.5 million) for the year ended March 31, 2021, compared to the previous year (approximately HKD 184.4 million), leading to more contract revenue recognized in the current period[37] Prospects and Outlook The Group will continue to focus on the renovation and fitting-out engineering market in Hong Kong, actively bidding for new projects, especially those related to Mainland property developers in Hong Kong; several new contracts have been awarded since April 1, 2021, and management considers COVID-19 a major uncertainty for future economic development, closely monitoring its potential impact on the supply chain - The Group will continue to focus on renovation and fitting-out works in Hong Kong, particularly for residential developments and commercial buildings; since April 1, 2021, 3 fitting-out projects (contract value HKD 55.2 million) and 3 renovation projects (contract value HKD 2.4 million) have been awarded[43] - Management considers COVID-19 a major uncertainty for future economic development and is monitoring its impact on the production capacity of material suppliers in Mainland China and Europe, which could affect project progress[45] Liquidity, Financial Resources and Capital Structure The Group primarily relies on cash from operations and bank borrowings to fund its activities; as of the end of the reporting period, the Group held approximately HKD 3.0 million in cash and had net assets of approximately HKD 17.9 million; the capital structure remained unchanged since the last period-end, with no significant investments, acquisitions, or disposals during the period, and foreign exchange risk is minimal Liquidity Metrics (HKD thousands) | Liquidity Metrics (HKD thousands) | Sep 30, 2021 | Mar 31, 2021 | | :--- | :--- | :--- | | Net current assets | 15,900 | 16,500 | | Net assets | 17,900 | 19,400 | | Bank balances and cash | 3,000 | 7,800 | - The capital structure remained unchanged since March 31, 2021, with no significant investments, acquisitions, or disposals of subsidiaries during the period[51][52][53] - The Group's operations are primarily in Hong Kong, with transactions denominated in HKD and USD, thus incurring no significant foreign exchange risk[54] Employees and Remuneration Policy As of September 30, 2021, the Group employed 46 staff; remuneration policy is determined by the Board based on employee experience, qualifications, and capabilities, with a Remuneration Committee for review - As of September 30, 2021, the Group employed a total of 46 employees; the remuneration policy is determined by the Board, with a Remuneration Committee established to review the remuneration of directors and senior management[55] Other Statutory and Regulatory Disclosures Directors' and Chief Executive's Interests in Shares, Underlying Shares and Debentures As of the end of the reporting period, Executive Director Mr. Chan Siu Chung was deemed to hold a 14.10% equity interest in the Company; additionally, several directors held share options granted by the Company, and no other directors or substantial shareholders held disclosable interests beyond those disclosed - Director Mr. Chan Siu Chung beneficially owned 112,838,709 shares (including share options directly held and shares held through his wholly-owned company Acropolis Limited), representing approximately 14.10% of the issued share capital[57] - To the best knowledge of the Directors, save for the Directors and chief executive, no other person had an interest in the shares of the Company required to be recorded in the register of substantial shareholders[61] Share Option Scheme During the reporting period, the Company granted 20 million new share options to executive directors and other employees under the Share Option Scheme, with an exercise price of USD 0.01; concurrently, approximately 5.68 million old share options lapsed, resulting in approximately 42.71 million outstanding share options at period-end - On July 12, 2021, the Company granted a total of 20,000,000 share options to executive directors and other employees, with an exercise price of USD 0.01[63] - During the period, a total of 5,677,420 share options granted to other employees lapsed[63] - As of September 30, 2021, the total number of outstanding share options was 42,709,677[63] Corporate Governance Practices The Company complied with the Corporate Governance Code during the reporting period, with one deviation: the roles of Chairman and Chief Executive Officer were not segregated, as Chairman Mr. Chan Siu Chung provided leadership while the CEO functions were jointly performed by executive directors; the Company has established an Audit and Risk Management Committee, comprising three independent non-executive directors, responsible for overseeing financial reporting and internal control systems - The Company complied with the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer were not performed by different individuals; Chairman Mr. Chan Siu Chung provided leadership, while the functions of the Chief Executive Officer were jointly performed by the executive directors to avoid duplication of duties[71] - The Company has established an Audit and Risk Management Committee, comprising three independent non-executive directors, with Mr. Yeung Chun Yu as Chairman; this committee has reviewed the unaudited condensed consolidated financial statements for the current period[73]