Financial Performance - Revenue for the six months ended June 30, 2022, was approximately HK$311,235,000, compared to HK$327,838,000 for the same period in 2021, indicating stability [21]. - Gross profit for the six months ended June 30, 2022, was approximately HK$36,546,000, with a gross profit margin of approximately 11.7%, compared to HK$34,887,000 and 10.6% in 2021 [21]. - The loss attributable to owners of the Company for the six months ended June 30, 2022, was approximately HK$9,246,000, representing an increase of approximately 18.1% from HK$7,826,000 in 2021 [21]. - Revenue for the six months ended June 30, 2022, was HK$311,235,000, a decrease of 5.1% from HK$327,838,000 in the same period of 2021 [127]. - Gross profit for the same period was HK$36,546,000, representing a gross margin of 11.7% compared to 10.6% in 2021 [127]. - Loss attributable to owners of the Company for the period was HK$9,246,000, compared to a loss of HK$7,826,000 in 2021, indicating a 18.1% increase in loss [127]. - Basic and diluted loss per share was HK$1.16, compared to HK$0.98 in the previous year, reflecting a 18.4% increase in loss per share [127]. Revenue Breakdown - For the six months ended June 30, 2022, the Group's revenue from fitting-out services was HK$309,418,000, a decrease of 5.3% from HK$326,839,000 in the same period of 2021 [165]. - Revenue from repair and maintenance services increased significantly to HK$1,817,000, compared to HK$999,000 in the previous year, marking an increase of 81.8% [165]. - The Group's total revenue for the six months ended June 30, 2022 was HK$311,235,000, down from HK$327,838,000 in 2021, reflecting a decrease of 5.1% [165]. Expenses and Costs - Other income decreased by approximately 97.2%, from HK$564,000 in 2021 to HK$16,000 in 2022, primarily due to reduced subsidies from the Hong Kong government [21]. - Administrative expenses remained stable at approximately HK$36,586,000 in 2022, compared to HK$38,496,000 in 2021 [21]. - Employee benefit expenses for the six months ended June 30, 2022, totaled approximately HK$53,033,000, slightly up from approximately HK$52,305,000 for the same period in 2021 [49]. - The Group's employee benefit expenses for the period were HK$53,723,000, an increase from HK$52,305,000 in the previous year, representing a rise of 2.7% [178]. - Finance costs were approximately HK$5,808,000 in 2022, slightly up from HK$5,348,000 in 2021, indicating stability [21]. - The Group's interest expenses on borrowings increased to HK$5,725,000 from HK$5,117,000, reflecting an increase of 11.9% [178]. Assets and Liabilities - The Group's total debt, including bank borrowings and lease liabilities, was approximately HK$335,849,000 as of June 30, 2022, compared to approximately HK$272,185,000 as of December 31, 2021 [37]. - The gearing ratio of the Group was approximately 66.3% as of June 30, 2022, up from approximately 57.4% as of December 31, 2021 [43]. - Total assets as of June 30, 2022, were HK$659,797,000, a slight increase from HK$648,814,000 as of December 31, 2021 [131]. - Total equity attributable to owners of the Company decreased to HK$141,673,000 from HK$150,919,000, a decline of 6.1% [131]. - Trade receivables increased to HK$110,575,000 from HK$92,059,000, representing a growth of 20.1% [131]. - Cash and cash equivalents decreased to HK$53,405,000 from HK$62,317,000, a decline of 14.5% [131]. - Borrowings increased to HK$332,199,000 from HK$265,186,000, indicating a rise of 25.2% [134]. Market Position and Strategy - The Group plans to increase its market share in the fitting-out industry in Hong Kong, supported by the government's commitment to develop land resources [29]. - The Group's technologies and technical solutions are aimed at creating a one-stop home furnishings solution to improve cost savings and efficiency [35]. - The Group will closely monitor its working capital management and adjust business strategies as necessary in response to market conditions [36]. - The Group expects to face ongoing challenges due to the impact of the COVID-19 pandemic, despite recent stabilization [31]. - The Group will assess opportunities arising from the application of its technologies and technical solutions to the general public [38]. Shareholder Information - The Group's issued capital was HK$8,000,000 with 800,000,000 ordinary shares as of June 30, 2022 [41]. - As of June 30, 2022, Mr. Ng and Ms. Zhao each hold 600,000,000 shares, representing a 75% long position in the company [82]. - Mr. Ng is deemed to be interested in the entire issued share capital of Fate Investment Company Limited, which holds the same number of shares [84]. - The company's share option scheme was adopted on June 16, 2020, and is valid until June 15, 2030, aimed at motivating eligible participants and retaining business relationships [103]. - The Company granted 4,000,000 share options at an exercise price of HK$0.712 per share on 1 April 2021 [105]. - As of 30 June 2022, all 4,000,000 share options granted under the Share Option Scheme were cancelled [113]. - The Directors did not recommend the payment of an interim dividend for the six months ended June 30, 2022, consistent with the same period in 2021 [185]. Corporate Governance - The Company’s Audit Committee reviewed the interim results for the six months ended 30 June 2022, ensuring compliance with applicable accounting standards [123]. - Ms. Ho Nga Ling resigned as an executive Director effective 31 August 2022, following a mutual decision not to renew her service contract [122]. - The Group did not have any significant related party transactions during the six months ended June 30, 2022 [72]. - There were no significant contingent liabilities as of June 30, 2022, consistent with the position as of December 31, 2021 [64]. Cash Flow - Net cash used in operating activities was $(50,559) thousand, compared to $(22,049) thousand in the previous period [143]. - Net cash used in investing activities totaled $(19,693) thousand, an increase from $(11,474) thousand in the prior period [143]. - Net cash generated from financing activities was $61,340 thousand, up from $29,166 thousand year-over-year [143]. - Cash and cash equivalents at the end of the period were $53,405 thousand, compared to $49,771 thousand at the end of the previous period [143]. - The company reported a net decrease in cash and cash equivalents of $(8,912) thousand, compared to $(4,357) thousand in the prior period [143]. Compliance and Accounting - The financial statements were prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 for interim financial reporting [150]. - Management is assessing the impact of new accounting standards effective from January 1, 2023, which have not been early adopted [160].
德合集团(00368) - 2022 - 中期财报