Financial Performance - For the six months ended September 30, 2020, the company reported total revenue of HKD 36,652,000, a 19.3% increase from HKD 30,561,000 in the same period of 2019[12] - Gross profit for the same period was HKD 14,396,000, representing a 40.5% increase compared to HKD 10,273,000 in 2019[12] - The company achieved a profit before tax of HKD 6,102,000, compared to a loss of HKD 2,425,000 in the previous year[12] - Net profit for the period was HKD 4,994,000, a significant recovery from a loss of HKD 2,580,000 in the same period of 2019[12] - Basic and diluted earnings per share for the six months ended September 30, 2020, were HKD 0.52, compared to a loss per share of HKD 0.27 in 2019[12] - The company reported a total comprehensive loss of HKD 2,507,000 for the six months ended September 30, 2020, compared to a loss of HKD 2,580,000 in the same period of 2019[18] - The net profit for the six months ended September 30, 2020, was approximately HKD 5.0 million, compared to a loss of about HKD 2.6 million for the same period in 2019[89] Assets and Equity - Total assets as of September 30, 2020, were HKD 80,575,000, an increase from HKD 70,896,000 as of March 31, 2020[14] - The company reported a total equity of HKD 68,804,000 as of September 30, 2020, up from HKD 63,904,000 as of March 31, 2020[14] - The company’s total equity as of September 30, 2020, was HKD 68,804,000, a decrease from HKD 70,783,000 as of April 1, 2019[18] - The company’s retained earnings as of September 30, 2020, were HKD 9,592,000, down from HKD 11,562,000 as of April 1, 2019[18] Cash Flow - The company reported a net cash inflow from operating activities of HKD 8,714,000 for the six months ended September 30, 2020, compared to a net cash outflow of HKD 4,498,000 for the same period in 2019[20] - Cash and cash equivalents increased to HKD 39,661,000 as of September 30, 2020, from HKD 36,578,000 at the end of the same period in 2019[20] - The company reported a cash flow increase of HKD 7,333,000 for the six months ended September 30, 2020, compared to a decrease of HKD 5,707,000 in the same period of 2019[20] Revenue Sources - Revenue from customer contracts for the six months ended September 30, 2020, was HKD 36,652,000, representing a 19.8% increase from HKD 30,561,000 in the same period of 2019[30] - The company generated revenue of HKD 22,748,000 from new property construction for the six months ended September 30, 2020, up 35.9% from HKD 16,748,000 in the same period of 2019[30] - The company recognized revenue of HKD 20,346,000 from services transferred over time for the six months ended September 30, 2020, compared to HKD 15,211,000 in the same period of 2019, reflecting a 34.1% increase[30] - The increase in revenue was primarily due to contributions from structural and geotechnical engineering consulting services for new property construction, which added approximately HKD 3.2 million, and e-commerce retail online platform revenue, which contributed approximately HKD 2.9 million[81] Employee Costs and Workforce - For the six months ended September 30, 2020, the total employee costs amounted to HKD 24,750,000, an increase of 4.9% compared to HKD 23,598,000 for the same period in 2019[38] - Employee costs, including director remuneration, amounted to approximately HKD 24.8 million for the six months ended September 30, 2020, compared to approximately HKD 23.6 million for the same period in 2019[106] - The company employed a total of 144 employees as of September 30, 2020, an increase from 125 employees as of September 30, 2019[106] - As of September 30, 2020, the company hired 12 engineering staff and interns in the geotechnical engineering team, resulting in employee costs of approximately HKD 5.5 million[108] - The company also hired 5 engineering staff for civil engineering projects, leading to employee costs of about HKD 1.5 million as of September 30, 2020[113] Investments and Acquisitions - The company acquired property, plant, and equipment amounting to approximately HKD 23,000,000 for the six months ended September 30, 2020, a significant decrease from HKD 218,000,000 for the same period in 2019[55] - The company recognized a bargain purchase gain of approximately HKD 163,000 from the acquisition of Hangzhou Zhouji Network Technology Co., Ltd.[68] - Hangzhou Zhouji Network recorded a loss of approximately HKD 227,000 from the acquisition date to the end of the reporting period on September 30, 2020[69] Corporate Governance - The board has complied with the corporate governance code as per GEM Listing Rules, with a review of insurance arrangements for directors ongoing[154] - The Audit Committee was established on August 27, 2018, in compliance with GEM listing rules, consisting of three independent non-executive directors[161] - The Audit Committee is responsible for recommending the appointment and removal of external auditors and overseeing the integrity of the company's financial reports[161] - The company has established a robust internal control system to ensure compliance with regulatory requirements[154] Future Plans and Market Strategy - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[12] - The company aims to expand its market share by securing more engineering consulting service contracts[77] - The company continues to explore the e-commerce retail online platform under the variable interest entity arrangement, providing quality product selections and professional health management solutions[80] - The company is currently seeking projects in the field of old building restoration and maintenance[113] Risks and Challenges - The company faces risks related to reliance on professional staff, project cost estimates, and credit risk associated with trade receivables[123] - Due to the COVID-19 pandemic and social unrest in Hong Kong, the company delayed plans to lease additional office space[113]
WAC HOLDINGS(08619) - 2021 - 中期财报