Company Overview - Sanbase Corporation Limited is listed on the GEM of the Hong Kong Stock Exchange under stock code 8501[1]. - The company acknowledges the higher investment risks associated with small and mid-sized companies listed on GEM[2]. - The company has a principal place of business and headquarters located in Hong Kong at 16/F, Loon Kee Building, 267-275 Des Voeux Road Central[18]. - The registered office is situated in the Cayman Islands at 4th Floor, Harbour Place, 103 South Church Street, P.O. Box 10240, Grand Cayman KY1-1002[21]. - The Group's ultimate holding company is Madison Square International Investment Limited, with Mr. Wong Sai Chuen as the controlling shareholder[1]. Financial Performance - Revenue for the six months ended 30 September 2021 decreased by 30.1% YoY to HK$210.7 million, down from HK$301.6 million in the same period last year[39]. - Net profit attributable to owners of the Company dropped by 79.6% YoY to HK$1.4 million, compared to HK$6.8 million in the previous year[39]. - Basic and diluted earnings per share decreased by 79.7% to HK$0.70 from HK$3.45 in the previous year[39]. - Revenue for the three months ended September 30, 2021, was HK$122,209,000, a decrease of 22% compared to HK$156,624,000 for the same period in 2020[42]. - Gross profit for the six months ended September 30, 2021, was HK$19,818,000, down from HK$25,545,000 in the previous year, reflecting a decline of 22%[42]. - Profit for the period attributable to owners of the Company was HK$1,977,000 for the three months ended September 30, 2021, compared to HK$2,197,000 in the same period of 2020[44]. - The Group recorded losses for the first time in the first quarter of the fiscal year due to the impact of the COVID-19 pandemic[27]. Revenue Breakdown - Revenue from the PRC's business increased by approximately 117.3% YoY, indicating a recovery in demand for premium fit-out solutions[32]. - Revenue from Hong Kong was HK$199,227,000 for the six months ended September 30, 2021, down 32.8% from HK$296,299,000 in 2020[96]. - The Group's revenue from the PRC for the six months ended September 30, 2021, was HK$11,465,000, a decrease of 52.5% compared to HK$5,275,000 in 2020[96]. - Revenue from bare shell fit-out dropped by 50.1% to HK$96.7 million, contributing 45.9% of total revenue in the current period compared to 64.3% in the previous period[184]. Cost and Expenses - Total cost of sales and administrative expenses reduced by 25.5% to HK$116,839,000 for the three months ended September 30, 2021, from HK$156,756,000 in 2020[102]. - Subcontracting charges decreased by 26% to HK$101,285,000 for the three months ended September 30, 2021, compared to HK$136,853,000 in the same period of 2020[102]. - Administrative expenses decreased from HK$17.1 million in the previous period to HK$13.7 million in the current period, mainly due to reduced staff costs and legal fees[197]. Assets and Liabilities - Total assets as of September 30, 2021, amounted to HK$311,063,000, an increase from HK$265,409,000 as of March 31, 2021[46]. - As of September 30, 2021, total liabilities increased to HK$158,482,000, up 36.3% from HK$116,204,000 as of March 31, 2021[48]. - Trade payables rose to HK$134,983,000, a 32.1% increase from HK$102,215,000[48]. - Trade receivables increased to HK$80.4 million as of 30 September 2021, compared to HK$61.3 million as of 31 March 2021[18]. Management and Governance - The audit committee is chaired by Mr. Cheung Chi Man, Dennis, with other members including Mr. Chan Chi Kwong, Dickson[12]. - The company has appointed PricewaterhouseCoopers as its auditor[16]. - The management discussion and analysis section is included in the interim report, providing insights into the company's performance[9]. Market Conditions - The vacancy rate for Grade A office buildings in Hong Kong rose to 9.8% in September 2021, an increase of 1.2% YoY, with Kowloon East reaching 13.8%[26]. - The Group remains confident that financial performance will improve as the bare shell fit-out market gradually recovers[27]. - The Group believes that demand for fitting-out services will eventually recover post-pandemic, with plans to explore new development opportunities[175]. Future Outlook - The Company plans to enhance service quality in the PRC, broaden the subcontractor network, and develop new customers to promote business growth[34]. - The Group aims to consolidate its existing business and improve the portfolio of subcontractors to enhance service quality and competitiveness[173]. - The Group is actively seeking more projects in the PRC to diversify its geographical distribution, with signs of revenue recovery in its PRC subsidiary[174].
庄皇集团公司(08501) - 2022 - 中期财报