Revenue Performance - The company's revenue decreased from approximately HKD 287.6 million to about HKD 210.3 million during the reporting period, primarily due to a decline in trading business volume[8]. - Trading business revenue was approximately HKD 29.7 million, down about HKD 82.1 million from approximately HKD 111.8 million in the same period last year[8]. - Construction-related revenue increased from approximately HKD 175.9 million to about HKD 180.6 million, mainly due to contributions from newly awarded private construction projects in mainland China, which generated about HKD 49.1 million[8]. - Revenue for the six months ended September 30, 2022, was HKD 210,353,000, a decrease of 27% compared to HKD 287,639,000 for the same period in 2021[58]. - Total revenue for the six months ended September 30, 2022, was HKD 210,353 thousand, with external sales from construction at HKD 180,630 thousand and trade at HKD 29,723 thousand[83]. - Revenue from civil engineering and building maintenance contracts recognized over time was HKD 180,630,000, an increase of 2.4% from HKD 175,871,000 in the previous year[100]. - Revenue from chemical materials trading recognized at a point in time was HKD 29,723,000, a significant decrease of 73.4% from HKD 111,768,000 in the previous year[100]. Financial Losses - The gross loss for the reporting period was approximately HKD 29.7 million, compared to a gross loss of about HKD 23.3 million in the same period last year[11]. - The total loss for the reporting period was approximately HKD 43.8 million, compared to about HKD 37.2 million in the same period last year[17]. - The company reported a loss before tax of HKD 43,552,000, compared to a loss of HKD 37,155,000 in the previous year, indicating a 17% increase in losses[58]. - The company reported a loss of HKD 43,470,000 for the six months ended September 30, 2022, compared to a loss of HKD 36,568,000 for the same period in 2021, indicating an increase in loss of approximately 19.5%[106]. - Basic and diluted loss per share was HKD 2.71, compared to HKD 2.31 in the prior year, reflecting a 17% increase in loss per share[60]. Cash Flow and Liquidity - As of September 30, 2022, the group's bank balance and cash amounted to approximately HKD 41.6 million, a decrease from approximately HKD 149.4 million as of March 31, 2022[18]. - The company's cash and cash equivalents dropped significantly from HKD 149,353,000 to HKD 41,583,000, a decrease of approximately 72%[62]. - For the six months ended September 30, 2022, the net cash used in operating activities was HKD (88,615) thousand, compared to HKD (83,919) thousand in the same period of 2021, reflecting an increase of 8.5%[70]. - The net cash used in investing activities was HKD (4,048) thousand, significantly improved from HKD (14,616) thousand in the previous year, indicating a reduction of 72.3%[70]. - The net cash used in financing activities was HKD (14,784) thousand, a decrease of 55.1% from HKD (32,914) thousand in the prior year[70]. - The company reported a net decrease in cash and cash equivalents of HKD (107,447) thousand for the period, an improvement from HKD (131,449) thousand in the previous year[70]. Assets and Liabilities - Non-current assets decreased to HKD 81,107,000 from HKD 90,940,000, a decline of approximately 11%[62]. - Current assets decreased to HKD 642,895,000 from HKD 718,000,000, a reduction of about 10%[62]. - Total liabilities decreased from HKD 335,744,000 to HKD 303,681,000, a reduction of about 10%[62]. - The company's equity attributable to owners decreased from HKD 427,527,000 to HKD 389,126,000, reflecting a decline of approximately 9%[64]. - The group had no capital commitments or significant contingent liabilities as of September 30, 2022[21]. Shareholder and Capital Structure - As of September 30, 2022, the group's issued share capital was approximately HKD 18.7 million, with a total of 1,869,159,962 ordinary shares issued[22]. - The company completed a rights issue on September 19, 2022, raising approximately HKD 42.77 million, with a net amount of approximately HKD 41.27 million[49]. - The intended use of the net proceeds from the rights issue includes HKD 33.02 million (80%) for construction projects in Hong Kong and HKD 8.25 million (20%) for general working capital[52]. - The total issued and paid-up ordinary shares increased to 1,869,159,962 shares as of September 30, 2022, from 1,584,000,000 shares on April 1, 2021[137]. - As of September 30, 2022, the company has a major shareholder, Huaguan Group Limited, holding 1,039,456,250 shares, representing 55.61% of the issued share capital[40]. Operational Performance - The company continues to explore potential business opportunities in mainland China, despite recent challenges due to the global economic downturn[7]. - The company plans to continue focusing on construction and property development, with ongoing investments in new projects and technologies to enhance operational efficiency[72]. - The segment performance for construction showed a loss of HKD (32,220) thousand, while property development and trade reported losses of HKD (354) thousand and a profit of HKD 166 thousand, respectively[83]. Employee and Administrative Costs - Administrative expenses were approximately HKD 17.6 million, relatively stable compared to about HKD 17.2 million in the same period last year[13]. - The group employed 267 staff as of September 30, 2022, an increase from 211 as of March 31, 2022, with employee costs for the reporting period amounting to approximately HKD 42.2 million[27]. - The management's compensation during the reporting period was approximately HKD 3,176,000, compared to HKD 2,658,000 for the same period in 2021[141]. Financing and Borrowings - The group pledged bank deposits of approximately HKD 85.3 million as of September 30, 2022, to secure bank borrowings of approximately HKD 143 million[24]. - The company reported a total bank borrowings of HKD 180,524,000 as of September 30, 2022, down from HKD 235,842,000 as of March 31, 2022, a decrease of 23.5%[131]. - The company has entered into financing agreements totaling HKD 80 million and HKD 30 million with banks, requiring Huaguan Group to maintain at least 25% shareholding[44]. - The group had unused bank financing of approximately HKD 52,600,000 as of September 30, 2022, down from HKD 103,675,000 as of March 31, 2022[136]. Risks and Compliance - The group had no significant foreign exchange risks aside from receivables amounting to approximately HKD 26.4 million in Thai Baht and HKD 147.1 million in Philippine Pesos as of September 30, 2022[21]. - The group has not violated any covenants related to the drawn loans as of September 30, 2022[135]. - The group provided financial guarantees to Jiangsu Provincial Construction Engineering Group Co., Ltd. amounting to HKD 52,207,000 during the reporting period[139]. - The group has sufficient insurance coverage to mitigate potential losses from ongoing litigation, with minimal likelihood of significant adverse impact[142]. Other Notable Information - The company did not declare any interim dividends for the reporting period[48]. - The company has not reported any changes in the board of directors during the reporting period[47]. - The company has not granted any share options under its share option scheme since its adoption on March 16, 2015[56]. - The company did not engage in any significant acquisitions or disposals during the reporting period[23]. - No significant events occurred after September 30, 2022[143].
均安控股(01559) - 2023 - 中期财报