Financial Performance - The company's revenue for the six months ended September 30, 2022, was approximately HKD 140,464,000, a decrease of 11.0% compared to HKD 157,877,000 in the same period of 2021[25]. - The profit attributable to the owners of the company for the same period was approximately HKD 2,356,000, representing a decrease of 72.2% from HKD 8,467,000 in 2021[25]. - The gross profit margin for the six months ended September 30, 2022, was 7.5%, down from 12.2% in the previous year, primarily due to increased costs of fuel, raw materials, direct labor, and subcontracting[34]. - The company experienced a significant decrease in revenue from project W55, which generated HKD 23,176,000 compared to HKD 52,386,000 in the previous year[32]. - Operating profit decreased significantly to HKD 2,868 thousand from HKD 9,849 thousand, reflecting a decline of 70.12%[82]. - Profit before tax was HKD 2,827 thousand, a decrease of 71.24% compared to HKD 9,823 thousand in the previous year[82]. - Net profit for the period was HKD 2,356 thousand, down 72.14% from HKD 8,467 thousand in the same period last year[82]. - Basic and diluted earnings per share were HKD 0.24, a decrease of 70.59% from HKD 0.85 in the previous year[82]. Income and Expenses - Other income and net gains for the period were approximately HKD 3,700,000, an increase of 128.5% from HKD 1,600,000 in 2021, attributed to increased government and other subsidies[34]. - The administrative and operating expenses for the six months were approximately HKD 11,300,000, a slight increase of 2.3% from HKD 11,100,000 in the previous year[34]. - Employee costs for the six months ended September 30, 2022, were approximately HKD 32,700,000, down from HKD 35,500,000 in the same period of 2021[53]. - Financing costs for the six months ended September 30, 2022, amounted to HKD 41,000, an increase from HKD 26,000 in the same period of 2021[111]. - The estimated tax expense for the period was HKD 471,000, down from HKD 1,356,000 in the previous year, a decrease of 65.3%[116]. Assets and Liabilities - Total assets as of September 30, 2022, were HKD 332,232 thousand, a decrease from HKD 351,736 thousand as of March 31, 2022[84]. - Current liabilities decreased to HKD 31,256 thousand from HKD 57,288 thousand, indicating improved liquidity[84]. - The group has unutilized bank financing of approximately HKD 76,500,000 as of September 30, 2022, unchanged from March 31, 2022[39]. - Trade receivables increased to HKD 51,943,000 as of September 30, 2022, from HKD 35,658,000 as of March 31, 2022, reflecting a growth of 46%[122]. - Contract assets decreased to HKD 90,525,000 from HKD 160,647,000, indicating a decline of 43.5%[125]. - Trade payables as of September 30, 2022, amounted to HKD 17,580,000, a decrease of 36.2% from HKD 27,512,000 as of March 31, 2022[132]. - The aging analysis of trade payables shows that amounts overdue by more than 90 days decreased to HKD 5,865,000 from HKD 10,774,000, representing a 45.3% reduction[132]. Cash Flow - As of September 30, 2022, the group had cash and cash equivalents of approximately HKD 28,800,000, a decrease of about HKD 24,600,000 from HKD 53,400,000 on March 31, 2022[39]. - The company reported a net cash outflow from operating activities of HKD 26,436 thousand, compared to an outflow of HKD 21,281 thousand in the previous year[90]. - Cash and cash equivalents at the end of the period were HKD 28,845 thousand, down from HKD 53,730 thousand at the end of the previous year[92]. Corporate Governance and Shareholder Information - The company has complied with the corporate governance code as per the Hong Kong Stock Exchange rules for the six months ending September 30, 2022, with the exception of one independent non-executive director's absence at the annual general meeting[61]. - No interim dividend was declared for the six months ending September 30, 2022, consistent with the previous year[65]. - The company has not purchased, sold, or redeemed any of its listed securities during the six months ending September 30, 2022[77]. - As of September 30, 2022, Mr. Lai Wei holds 600,000,000 shares, representing 60.0% of the company's issued ordinary shares[68]. - The major shareholder, Shihui, also holds 600,000,000 shares, equating to a 60.0% stake in the company[72]. - There have been no changes in the information of directors or senior management that require disclosure under the listing rules for the six months ending September 30, 2022[64]. Future Outlook and Strategy - The group plans to actively participate in government tender projects to achieve revenue growth, despite increasing competition and technical requirements[38]. - The group aims to enhance its bidding advantages and capabilities to secure more successful project bids[38]. - The group will continue to manage its cash reserves prudently to ensure readiness for future growth opportunities[43]. - The company has not encountered any liquidity issues in settling payables during normal business operations as of September 30, 2022[39]. - The company has no significant investments or future plans for major capital assets as of September 30, 2022[45].
生兴控股(01472) - 2023 - 中期财报