Financial Performance - The group recorded a revenue of approximately HKD 142.7 million for the six months ended September 30, 2021, a decrease of about HKD 28.8 million or 16.8% compared to HKD 171.5 million for the same period in 2020[42]. - Gross profit for the review period was approximately HKD 16.2 million, an increase of about 10.3% from HKD 14.7 million in the previous period, with a gross margin of approximately 11.4% compared to 8.6%[43]. - The group’s profit attributable to owners decreased by approximately 9.4% to about HKD 8.3 million from HKD 9.1 million in the previous period[49]. - Other income for the review period was approximately HKD 215,000, a decrease of about HKD 2.8 million from HKD 3.0 million in the previous period, mainly due to a one-time government subsidy[44]. - The company reported a total comprehensive income of HKD 8,254,000 for the period, down from HKD 9,115,000 in the previous year[79]. - The group’s pre-tax profit for the six months ended September 30, 2021, was HKD 8,254,000, compared to HKD 9,115,000 in the same period of 2020, reflecting a decline of 9.5%[133]. Expenses and Costs - Administrative expenses increased by approximately 28.0% to about HKD 8.0 million from HKD 6.3 million in the previous period, primarily due to increased depreciation of property, plant, and equipment[47]. - The total employee cost for the group during the review period was approximately HKD 14.5 million, compared to HKD 15.4 million for the six months ended September 30, 2020[74]. - The interest expense on lease liabilities for the six months ended September 30, 2021, was HKD 45,000, a slight decrease from HKD 48,000 in 2020[119]. Assets and Liabilities - As of September 30, 2021, the group's cash and bank balances totaled approximately HKD 100.2 million, an increase from HKD 84.8 million as of March 31, 2021[50]. - The total assets less current liabilities amounted to HKD 250,902,000, an increase from HKD 243,416,000 as of March 31, 2021[84]. - The group had contingent liabilities of approximately HKD 35.2 million related to performance guarantees to banks, down from HKD 39.5 million as of March 31, 2021[60]. - Trade receivables decreased to HKD 47,058,000 as of September 30, 2021, compared to HKD 60,612,000 as of March 31, 2021, indicating a reduction in outstanding payments[145]. - Trade payables increased to HKD 17,690,000 as of September 30, 2021, up from HKD 11,311,000 as of March 31, 2021, suggesting a rise in obligations to suppliers[150]. Capital and Investments - The group invested approximately HKD 236,000 and HKD 34.8 million in property, plant, and equipment during the review period, primarily funded by internal resources[57]. - The net proceeds from the IPO amounted to approximately HKD 78.9 million, slightly lower than the estimated net proceeds of HKD 82.5 million disclosed in the allocation results[70]. - The company has no significant capital commitments as of September 30, 2021[60]. - The company agreed to acquire a property in Hong Kong for HKD 45 million, with an initial deposit of HKD 2.25 million paid on November 15, 2021[67]. Market and Operational Outlook - The group is actively exploring vertical expansion opportunities to ensure a more stable supply of building materials[38]. - The group anticipates that the COVID-19 pandemic will continue to impact its business to some extent and is closely monitoring related risks and uncertainties[41]. - The group aims to adopt more competitive bidding pricing policies and strictly control production costs to achieve reasonable project gross margins[38]. Governance and Compliance - The company has complied with the corporate governance code, ensuring the best interests of shareholders are protected[180]. - The audit committee, established on December 12, 2019, consists of three independent non-executive directors to oversee internal controls, risk management, and financial reporting[186]. - The board consists of five members, including executive directors and independent non-executive directors, ensuring a diverse governance structure[190]. - The company confirms it has maintained sufficient public float during the review period as per listing rules[185].
华和控股(09938) - 2022 - 中期财报