Financial Performance - The company recorded revenue of approximately HKD 249.2 million for the six months ended September 30, 2022, a decrease of 4.9% compared to HKD 262.1 million for the same period in 2021[5]. - Net profit dropped from approximately HKD 5.6 million for the six months ended September 30, 2021, to about HKD 1.0 million in the current period, primarily due to reduced income from construction projects and increased depreciation and financing costs[5]. - The gross profit decreased by approximately 69.9% from HKD 15.7 million to about HKD 4.7 million, with the gross profit margin falling from 6.0% to 1.9%[14]. - The net profit for the period was HKD 1,028,000, a significant decline of 81.7% compared to HKD 5,589,000 in the previous year[42]. - Basic and diluted earnings per share decreased to HKD 0.44, down 82.3% from HKD 2.49 in the same period last year[42]. - The group reported a segment loss of HKD 2,328,000 for the six months, compared to a profit of HKD 7,438,000 in the same period last year[59]. - The profit before tax for the six months ended September 30, 2022, was HKD 1,028,000, significantly lower than HKD 5,589,000 in 2021, a decline of 82%[74]. Revenue Breakdown - Construction revenue for the current period was approximately HKD 75.2 million, accounting for about 30.2% of total revenue, down from HKD 85.7 million and 32.7% in the previous period[10]. - The construction machinery rental income was approximately HKD 174.0 million, accounting for about 69.8% of total revenue, a slight decrease from HKD 176.4 million and 67.3% in the previous period[13]. - Revenue from construction projects was HKD 75,178,000, down 12.2% from HKD 85,674,000 year-on-year[56]. - Revenue from machinery leasing was HKD 173,976,000, a slight decrease of 1.3% compared to HKD 176,445,000 in the previous year[56]. Expenses and Costs - Administrative expenses rose by approximately 8.3% to HKD 11.8 million, compared to HKD 10.9 million in the previous period, primarily due to increased professional service fees[17]. - Financing costs for the period were approximately HKD 4.6 million, an increase of about 49.9% compared to HKD 3.1 million for the six months ended September 30, 2021, primarily due to increased interest-bearing liabilities and rising interest rates[18]. - Interest expenses for bank loans increased to HKD 1,347,000 in 2022 from HKD 615,000 in 2021, representing a 119% increase[67]. - Lease liabilities interest expenses rose to HKD 3,268,000 in 2022 from HKD 2,464,000 in 2021, marking a 33% increase[67]. - The total interest expenses amounted to HKD 4,615,000 in 2022, up from HKD 3,079,000 in 2021, reflecting a 50% increase[67]. Assets and Liabilities - As of September 30, 2022, the group had bank balances of approximately HKD 39.0 million, up from HKD 17.3 million as of March 31, 2022, while interest-bearing liabilities were approximately HKD 189.7 million, compared to HKD 182.2 million[20]. - The debt-to-equity ratio as of September 30, 2022, was approximately 73.7%, a decrease of about 15.5% from 89.2% as of March 31, 2022[20]. - Total assets less current liabilities increased to HKD 333,082,000 from HKD 274,016,000 as of March 31, 2022[44]. - Total assets increased to HKD 550,043,000 as of September 30, 2022, up from HKD 471,057,000 as of March 31, 2022[63]. - Total liabilities rose to HKD 292,667,000 as of September 30, 2022, compared to HKD 266,947,000 as of March 31, 2022[63]. Shareholder and Capital Structure - The group completed a rights issue on September 23, 2022, issuing 207,500,000 shares at a subscription price of HKD 0.26 per share, raising approximately HKD 54.0 million[23]. - The net proceeds from the rights issue were approximately HKD 52.0 million, with about HKD 37.3 million allocated for purchasing air compressors and HKD 14.7 million for general working capital[23]. - The company's issued and paid-up share capital increased to HKD 20,750,000 as of September 30, 2022, from HKD 10,375,000 as of March 31, 2022, following a rights issue[96]. - The weighted average number of ordinary shares for calculating basic and diluted earnings per share increased to 231,331,000 in 2022 from 224,027,000 in 2021, an increase of 3.3%[76]. Government and Market Outlook - The company anticipates more business opportunities due to the Hong Kong government's commitment to increase public infrastructure spending[6]. - The Hong Kong government plans to exceed HKD 100 billion in annual infrastructure spending over the next few years, which the group views positively for long-term market development[31]. - The group anticipates gradual recovery in the foundation industry and expects steady increases in tender opportunities and equipment rental business, despite challenges from competition and rising costs[29]. Corporate Governance - The company has complied with the corporate governance code, except for deviations regarding the separation of roles between the chairman and the CEO, which remains unfilled as of the report date[108][109]. - The company aims to enhance its corporate governance practices to align with its business operations and development[108].
进升集团控股(01581) - 2023 - 中期财报