Financial Performance - For the six months ended September 30, 2022, the Group recorded unaudited consolidated revenue of HK$566.4 million, a decrease of 19.5% from HK$703.5 million for the corresponding period last year[35]. - The unaudited consolidated loss for the same period was HK$77.6 million, compared to a net profit of HK$93.4 million for the same period in 2021[35]. - The basic and diluted loss per share for the six months ended September 30, 2022, were both HK7.0 cents, compared to HK8.5 cents and HK8.4 cents for the corresponding period last year[35]. - The net loss is primarily attributed to a decrease in the revaluation of investment properties and impairment losses on properties under development for sale[35]. - The Group's financial performance was significantly impacted by losses recognized through changes in fair value of investment properties and share of losses of joint ventures[35]. Dividends - The Board resolved to pay a first interim dividend of HK2.5 cents per share for the six months ended September 30, 2022, consistent with the previous year[35]. Operational Strategies - The Group aims to enhance operational efficiency and explore new market opportunities to recover from the current financial downturn[35]. - Future strategies may include focusing on core construction projects and potential market expansions to improve revenue streams[35]. - The management is committed to closely monitoring market conditions and adjusting strategies accordingly to mitigate risks[35]. - The Group continues to invest in technology and innovation to improve project delivery and operational effectiveness[35]. Revenue by Division - The revenue of the Construction Division for the six months ended 30 September 2022 was HK$417.5 million, a decrease of 32.6% compared to HK$620.1 million for the same period in 2021[41]. - The revenue of the Interior and Renovation Division for the six months ended 30 September 2022 was HK$115.6 million, an increase of 105.3% compared to HK$56.1 million for the same period in 2021[49]. - The Building Materials Division recorded a revenue of HK$20.5 million for the six months ended 30 September 2022, a decrease of 36.7% compared to HK$32.3 million for the same period in 2021[54]. - The Property Development Division recorded no revenue for the six months ended 30 September 2022, consistent with the same period in 2021[58]. - The Property Investment Division generated revenue of HK$29.9 million for the six months ended 30 September 2022, a decrease of 6.1% from HK$34.1 million in the same period in 2021[72]. - The Property Agency and Management Division reported revenue of HK$8.9 million for the period under review, an increase of 117.1% compared to HK$4.1 million for the six months ended September 30, 2021[78]. Contracts and Projects - As of 30 September 2022, contracts on hand for the Construction Division amounted to HK$1,554.4 million[41]. - Contracts on hand for the Interior and Renovation Division as of 30 September 2022 amounted to HK$521.8 million[49]. - Contracts on hand for the Building Materials Division as of 30 September 2022 amounted to HK$283.6 million[54]. - Major construction works completed during the period included the residential redevelopment at No. 8 Star Street, Wan Chai, Hong Kong[42]. - Major contract works awarded during the period included a building works term contract (2022-2025) for shopping centres and car parks in Tin Shui Wai and Tuen Mun[49]. - The company completed significant projects such as the public housing development at Java Road, North Point, Hong Kong during the review period[42]. Economic Environment - The business environment for retail trade has become more difficult due to the impact of coronavirus, leading to a focus on developing e-shopping channels to attract customers from different regions[85]. - The recent inflationary pressures have triggered a sharp increase in interest rates globally, affecting all industries, with expectations of a global slowdown or recession due to tough monetary policies[86]. - Hong Kong's economy is still in a slow recovery phase, with the government easing social distancing restrictions to promote economic activities, but further relaxation may be needed to boost business travel and tourism[87]. - The construction sector in Hong Kong is expected to benefit from the Northern Metropolis Development Strategy and the Lantau Tomorrow Vision project, which will increase land supply and capital works expenditure[91]. - The government plans to construct approximately 330,000 public housing units over the next 10 years, with a target to secure around 170 hectares of land for about 100,000 private housing units[96]. Future Outlook - The Group is optimistic about the construction sector's prospects despite challenges such as high raw material costs and labor shortages, focusing on cost control and operational efficiency[91]. - The expansion of the railway network supporting new development projects is expected to unlock economic potential in various districts[91]. - The Group's Interior and Renovation Division aims to provide innovative design services and explore the integration of environmental technology into green construction[95]. - The Group will continue to strive for excellence and maintain a commitment to surpassing client expectations in the interior and renovation market[95]. Financial Position - The total bank balances and cash decreased from HK$609.3 million as of March 31, 2022, to HK$578.3 million at September 30, 2022[109]. - The current ratio increased from 1.60 times as of March 31, 2022, to 1.75 times at the end of the reporting period[109]. - The Group has access to bank facilities totaling HK$3,345.4 million, with HK$1,625.4 million in bank loans drawn down as of September 30, 2022[110]. - The gearing ratio improved to 25.7% as of September 30, 2022, down from 28.0% as of March 31, 2022[117]. - The Group borrowed HK$1,625.4 million from banks during the review period, with HK$494.4 million repayable within the first year and HK$1,131.0 million within the second year[116]. Share Capital and Ownership - As of September 30, 2022, the total number of issued shares of the Company was 1,111,682,676 shares[152]. - The beneficial owner Cha Mou Daid, Johnson holds 14,155,500 shares, representing approximately 1.27% of the issued share capital[149]. - Wong Sue Toa, Stewart has a total interest of 58,460,619 shares, which is about 5.25% of the issued share capital[149]. - The beneficial owner Tai Sai Ho holds 17,385,721 shares, accounting for approximately 1.56% of the issued share capital[149]. - The beneficial owner Chow Ka Fung holds 2,394,000 shares, representing about 0.21% of the issued share capital[149]. - The beneficial owner Lam Chat Yu holds 2,458,000 shares, which is approximately 0.22% of the issued share capital[149]. Share Options and Repurchases - The Company has not granted any options under the Existing Scheme since its adoption on August 25, 2020[158]. - The former share option scheme was terminated on August 25, 2020, but options granted prior to that remain valid[157]. - The share options exercised during the six months ended September 30, 2022 amounted to 6,097,000 shares[164]. - The total balance of share options as of September 30, 2022 was 25,212,000 shares, representing approximately 2.26% of the issued share capital[164]. - The company repurchased a total of 2,568,000 shares during the six months ended September 30, 2022, for a total consideration of HK$2,972,540[191]. - The highest repurchase price per share in September 2022 was HK$1.16, while the lowest was HK$1.15[195]. Corporate Governance - The company complied with all applicable code provisions of the Corporate Governance Code, except for the chairman's absence at the annual general meeting[185]. - The chairman of the board was not present at the 2022 annual general meeting due to other engagements[185]. - The company has adopted the Model Code for securities transactions by directors and employees[190]. - The company has engaged Deloitte Touche Tohmatsu to assist in reviewing the unaudited condensed consolidated financial statements for the six months ended September 30, 2022[200].
兴胜创建(00896) - 2023 - 中期财报