Financial Performance - For the six months ended September 30, 2020, the group's revenue was approximately HKD 68.0 million, a decrease of about 33.7% compared to HKD 102.4 million for the same period in 2019[6]. - Gross profit for the six months ended September 30, 2020, was approximately HKD 26.8 million, down approximately 37.6% from HKD 43.0 million for the same period in 2019[7]. - Net profit decreased from approximately HKD 14.1 million for the six months ended September 30, 2019, to approximately HKD 3.8 million for the same period in 2020[7]. - Basic and diluted earnings per share for the six months ended September 30, 2020, were HKD 0.39, compared to HKD 1.88 for the same period in 2019[7]. - The group reported a pre-tax profit of HKD 5.784 million for the six months ended September 30, 2020, down from HKD 18.273 million for the same period in 2019[8]. - Total comprehensive income for the period was HKD 3.758 million for the six months ended September 30, 2020, compared to HKD 14.074 million for the same period in 2019[8]. - The total profit and comprehensive income decreased from approximately HKD 14.1 million to approximately HKD 3.8 million for the six months ended September 30, 2020[80]. Revenue Breakdown - Total revenue for the six months ended September 30, 2020, was HKD 67,962,000, a decrease of 33.5% compared to HKD 102,449,000 for the same period in 2019[26]. - Revenue from construction protection services for the six months ended September 30, 2020, was HKD 41,545,000, down 34.1% from HKD 63,016,000 in 2019[31]. - Revenue from the supply of construction protection products for the six months ended September 30, 2020, was HKD 26,417,000, a decrease of 33.0% compared to HKD 39,433,000 in 2019[31]. - The group’s revenue from Hong Kong for the six months ended September 30, 2020, was HKD 61,994,000, a decline of 29.4% from HKD 87,821,000 in 2019[34]. - The group’s revenue from Macau for the six months ended September 30, 2020, was HKD 5,968,000, a decrease of 59.1% compared to HKD 14,628,000 in 2019[34]. Expenses and Costs - Administrative expenses increased to HKD 18.257 million for the six months ended September 30, 2020, from HKD 13.523 million for the same period in 2019[8]. - Total employee costs for the six months ended September 30, 2020, amounted to 16,079,000 HKD, representing a 29.5% increase from 12,412,000 HKD in the previous year[39]. - The cost of sales and services decreased from approximately HKD 59.5 million to approximately HKD 41.2 million, a reduction of about 30.8%[69]. - Financial costs increased from approximately HKD 31,000 to approximately HKD 56,000, primarily due to lease liabilities[76]. Assets and Liabilities - As of September 30, 2020, the company's total assets increased to HKD 200,607,000 from HKD 179,225,000 as of March 31, 2020, representing an increase of approximately 11.5%[10]. - The company's net current assets rose to HKD 156,673,000, up from HKD 118,548,000, indicating a growth of about 32.1%[10]. - The total equity of the company reached HKD 162,514,000 as of September 30, 2020, compared to HKD 123,501,000 as of March 31, 2020, reflecting an increase of approximately 31.6%[12]. - Trade receivables as of September 30, 2020, were 14,959,000 HKD, a decrease of 36.0% from 23,317,000 HKD as of March 31, 2020[49]. - The company’s total liabilities decreased significantly, with trade and other payables totaling HKD 20,739,000 as of September 30, 2020, down from HKD 42,025,000 as of March 31, 2020[57]. Cash Flow and Financing - Cash and cash equivalents increased to HKD 63,915,000 as of September 30, 2020, compared to HKD 39,920,000 at the beginning of the period, marking a rise of approximately 60.1%[17]. - The company issued new shares, raising HKD 60,000,000 during the financing activities, which contributed to the increase in cash flow[17]. - The company experienced a net cash outflow from operating activities of HKD 12,660,000 for the six months ended September 30, 2020, compared to a net inflow of HKD 12,917,000 in the previous year[14]. Dividends - The board of directors did not recommend any dividend for the six months ended September 30, 2020, consistent with the same period in 2019[7]. - The company declared a final dividend of 0.58 HKD per share for the year ended March 31, 2020, totaling 5,800,000 HKD, but did not recommend any dividend for the six months ended September 30, 2020[46]. Government Support and Other Income - The group recognized government subsidies amounting to HKD 983,000 for the six months ended September 30, 2020[35]. - Other income for the six months ended September 30, 2020, was HKD 1.151 million, compared to HKD 110 thousand for the same period in 2019[8]. Management and Governance - The company has established an audit committee responsible for reviewing financial reporting processes and internal controls[124]. - The company has complied with the corporate governance code, except for the separation of the roles of Chairman and CEO[121]. - The company believes that Mr. Lin holding both the Chairman and CEO positions is in the best interest of the group[121]. Risks and Future Outlook - Key risks include reliance on non-recurring revenue, potential underestimation of project costs, and dependency on third-party suppliers for construction protection products[109]. - The company anticipates that the impact of the COVID-19 pandemic on the construction industry will continue to affect project timelines and financial performance until the situation is under control[103]. - The management remains confident in the company's future prospects and aims to secure more construction protection projects in Hong Kong to strengthen market position[105].
新威工程集团(08616) - 2021 - 中期财报