Financial Performance - The company's revenue for the six months ended September 30, 2022, decreased by approximately HKD 67,138,000 or 23.9% to about HKD 213,790,000 compared to approximately HKD 280,928,000 for the same period in 2021[12]. - Gross profit decreased by approximately HKD 11,132,000 or 19.7% to about HKD 45,356,000, while the gross profit margin increased from approximately 20.1% to 21.2%[14]. - The profit attributable to the owners of the company decreased to approximately HKD 30,953,000 from HKD 35,125,000 in the same period last year[17]. - Revenue for the six months ended September 30, 2022, was HKD 213,790,000, a decrease of 24% compared to HKD 280,928,000 for the same period in 2021[78]. - Net profit for the period was HKD 30,914,000, compared to HKD 35,125,000 in the prior year, reflecting a decline of 12%[78]. - Basic earnings per share decreased to HKD 3.9 from HKD 4.4, representing a drop of approximately 11%[78]. - The company reported a profit before tax of HKD 35,794,000, a decrease of 15% from HKD 42,324,000 in the previous year[78]. - The company's operating profit before tax for the six months ended September 30, 2022, was HKD 35,794,000, a decrease of 15.9% compared to HKD 42,324,000 for the same period in 2021[85]. Expenses and Costs - Service costs decreased by approximately HKD 56,006,000 or 25.0% to about HKD 168,434,000, down from approximately HKD 224,440,000 in the previous period[13]. - Administrative expenses increased by approximately HKD 2,128,000 or 17.3% to about HKD 14,410,000, primarily due to an increase in research projects related to blockchain and the metaverse[15]. - The income tax expense decreased by approximately HKD 2,319,000 or 32.2% to about HKD 4,880,000, mainly due to a reduction in taxable profits[16]. - The company’s total employee costs for the six months ended September 30, 2022, were HKD 37,315,000, a decrease from HKD 38,719,000 in the same period of 2021, representing a decline of approximately 3.6%[102]. - The total remuneration for key management personnel was HKD 2,736,000 for the six months ended September 30, 2022, down from HKD 3,358,000 for the same period in 2021, reflecting a decrease of 18%[138]. - The company’s short-term employee benefits for key management were HKD 2,772,000 for the six months ended September 30, 2022, compared to HKD 3,394,000 for the same period in 2021, indicating a decrease of 18%[138]. Assets and Liabilities - Total assets as of September 30, 2022, were HKD 391,677,000, down from HKD 430,033,000 as of March 31, 2022[79]. - Non-current assets increased to HKD 82,053,000 from HKD 13,879,000, indicating significant investment in property and equipment[79]. - The company’s total liabilities included lease liabilities of HKD 5,204,000 as of September 30, 2022, significantly up from HKD 1,065,000 as of March 31, 2022[81]. - The company’s lease liabilities as of September 30, 2022, amounted to HKD 1,075,000, an increase from HKD 55,000 as of March 31, 2022[134]. - The company’s accrued expenses were HKD 9,001,000 as of September 30, 2022, compared to HKD 8,607,000 as of March 31, 2022, representing a rise of 5%[125]. - The company reported a total of HKD 12,973,000 in warranty payables as of September 30, 2022, compared to HKD 12,229,000 as of March 31, 2022, marking an increase of 6%[125]. Dividends and Shareholder Information - The interim dividend declared is HKD 0.016 per share, totaling approximately HKD 12,800,000, down from HKD 0.021 per share or HKD 16,800,000 in the previous period[18]. - The company declared dividends of HKD 16,800,000 during the six months ended September 30, 2022, compared to no dividends declared in the same period of 2021[86]. - As of September 30, 2022, the major shareholders, Lightspeed Limited, hold 600,000,000 shares, representing 75% of the company's equity[56]. - Dr. Gao and Ms. Zhang, the main executives, each have a beneficial interest in 600,000,000 shares of Lightspeed, equating to 75% ownership[56]. Investments and Acquisitions - The company completed the acquisition of Best Investment Development Limited for HKD 61,828,000 on August 31, 2022, which holds several properties at TML Plaza[39]. - The company completed the acquisition of a subsidiary, resulting in a cash outflow of HKD 61,828,000 during the six months ended September 30, 2022[86]. - Capital expenditures for the acquisition of property, plant, and equipment amounted to HKD 56,358,000 and HKD 5,801,000 for investment properties during the period[34]. - During the six months ended September 30, 2022, the company acquired properties, plant, and equipment amounting to HKD 56,358,000 and investment properties of HKD 5,801,000[110]. Research and Development - The company is actively involved in research and development, establishing a joint laboratory focused on the metaverse and human-computer interaction with a local university[10]. - The group has established a joint laboratory with Hong Kong Educational University to promote technology applications in education, which may lead to future business opportunities[51]. Market Opportunities and Strategy - The company aims to capture opportunities arising from macroeconomic changes and adjust its operational strategies to enhance market share[11]. - The Hong Kong government plans to increase land supply for at least 72,000 residential units over the next five years, which is expected to create significant opportunities for the construction industry[51]. - The group aims to enhance its service capabilities and seize business opportunities to strengthen its position in the electromechanical engineering sector[49]. - The group is committed to integrating energy-saving technologies and renewable energy into its systems to align with government low-carbon transformation goals, thereby reducing carbon emissions[52]. Financial Position and Ratios - The current ratio as of September 30, 2022, was approximately 4.70 times, down from approximately 5.99 times on March 31, 2022[27]. - The debt-to-equity ratio as of September 30, 2022, was approximately 7.9%, compared to approximately 4.9% on March 31, 2022[33]. - The company maintained sufficient public float as per listing rules during the reporting period[69]. - The company has no significant foreign currency risk as its monetary assets and liabilities are primarily denominated in Hong Kong dollars[44]. Receivables and Payables - Trade receivables slightly decreased by approximately HKD 47,000 or 0.1% from approximately HKD 59,796,000 on March 31, 2022, to approximately HKD 59,749,000 on September 30, 2022[23]. - The company provided trade credit terms ranging from 7 to 90 days to customers, with overdue receivables of HKD 14,539,000 as of September 30, 2022, which are not considered in default[114]. - The company’s total receivables, after deducting credit loss provisions, stood at HKD 59,749,000 as of September 30, 2022, compared to HKD 59,796,000 as of March 31, 2022[111]. - As of September 30, 2022, trade payables amounted to HKD 21,944,000, a decrease of 5% from HKD 23,103,000 as of March 31, 2022[125]. - The aging analysis of trade payables shows that amounts due within 30 days were HKD 20,594,000, down from HKD 21,905,000, representing a decrease of 6%[126].
高陞集团控股(01283) - 2023 - 中期财报