Revenue Performance - The solar power business generated revenue of approximately HKD 55,500,000 (around RMB 45,800,000) for the six months ended December 31, 2021, a decrease of 43.8% compared to HKD 98,800,000 (around RMB 86,700,000) for the same period in 2020[8]. - The distribution system business recorded revenue of approximately HKD 106,200,000 (around RMB 87,500,000) for the six months ended December 31, 2021, an increase of 55.5% from HKD 68,300,000 (around RMB 59,900,000) for the same period in 2020[9]. - The revenue from the solar power and distribution system businesses accounted for approximately 34.2% (HKD 55,500,000) and 65.4% (HKD 106,200,000) of the group's total revenue, respectively[11]. - For the six months ended December 31, 2021, total revenue from external customers was HKD 162,302,000, with contributions of HKD 618,000 from engineering services, HKD 55,534,000 from solar energy business, and HKD 106,150,000 from distribution system business[65]. - Total revenue for the six months ended December 31, 2021, was HKD 162,302,000, compared to HKD 168,688,000 for the same period in 2020, a decline of 3.1%[75]. Profitability and Losses - The group reported a gross profit of approximately HKD 12,400,000 for the six months ended December 31, 2021, down 41.6% from HKD 21,300,000 for the same period in 2020, with a gross margin decrease from 12.6% to 7.7%[13]. - The loss attributable to the owners of the company was approximately HKD 13,500,000 for the six months ended December 31, 2021, compared to a loss of HKD 7,500,000 for the same period in 2020[13]. - The pre-tax loss reported for the six months ended December 31, 2021, was HKD 13,503,000, compared to a loss of HKD 7,505,000 in the previous year[83]. - Basic and diluted loss per share was HKD 0.97, compared to HKD 0.54 for the same period in 2020[83]. Financial Position - As of December 31, 2021, the group's net current assets were approximately HKD 320,900,000, down from HKD 343,100,000 as of June 30, 2021[17]. - The group held cash and cash equivalents of approximately HKD 50,300,000 as of December 31, 2021, compared to HKD 75,100,000 as of June 30, 2021[17]. - The total assets of China Power decreased from HKD 424,857,000 as of June 30, 2021, to HKD 363,044,000 as of December 31, 2021[43]. - The net asset value of China Power decreased from HKD 344,331,000 as of June 30, 2021, to HKD 322,360,000 as of December 31, 2021[44]. - The company experienced a decrease in cash and cash equivalents, ending the period with HKD 50,296,000, down from HKD 73,993,000 at the end of 2020[47]. Expenses and Provisions - The expected credit loss provision increased by approximately HKD 5,000,000 to HKD 6,700,000 for the six months ended December 31, 2021, compared to HKD 1,800,000 for the same period in 2020[14]. - Administrative expenses remained stable at approximately HKD 11,300,000 for the six months ended December 31, 2021, compared to HKD 11,200,000 for the same period in 2020[15]. - Employee costs for China Power amounted to approximately HKD 8,200,000 during the review period, compared to HKD 5,300,000 for the six months ended December 31, 2020[37]. - The total remuneration for key management personnel for the six months ended December 31, 2021, was HKD 6,117,000, an increase of 68% compared to HKD 3,644,000 for the same period in 2020[115]. Investments and Financial Instruments - The group recorded dividend income from listed securities investments of HKD 37,250 during the six months ended December 31, 2021, compared to no income in the same period the previous year[29]. - The fair value loss on financial assets measured at fair value through profit or loss was HKD 1 million for the six months ended December 31, 2021, compared to a loss of HKD 8.2 million in the same period the previous year[29]. - The company has not used any financial instruments for hedging purposes as of December 31, 2021[23]. - The fair value of financial assets measured at fair value through profit or loss was HKD 5,786,000 as of December 31, 2021, a decrease from HKD 6,834,000 as of June 30, 2021, representing a decline of approximately 15.3%[108]. Corporate Governance and Compliance - The company has complied with all applicable corporate governance code provisions except for the separation of the roles of Chairman and CEO, which is currently held by the same individual[120]. - The audit committee, established on December 9, 2013, consists of four non-executive directors, three of whom are independent, and is chaired by Mr. Leung Po-han[131]. - The company has confirmed that all directors have fully complied with the relevant standards of the securities trading code during the six months ended December 31, 2021[122]. Future Outlook - China Power plans to focus more resources on its distribution system business due to pressures on contract volume and profitability in the photovoltaic business[38]. - The company expects domestic business to return to normal development despite the impact of COVID-19[39]. - The company anticipates pressure on future cash-generating unit contracts and gross margins due to policy disruptions and industry consolidation in China[88].
工盖有限公司(01421) - 2022 - 中期财报