Financial Performance - For the six months ended June 30, 2022, Anchorstone Holdings Limited recorded revenue of approximately HKD 54.8 million, an increase of 6% compared to the same period last year[8]. - The overall gross profit margin improved to approximately 25.6% from 19.8% in the previous year, with gross profit increasing from approximately HKD 10.2 million to HKD 14.0 million, a rise of about 37.1%[15]. - The loss attributable to the owners of the company narrowed to approximately HKD 1.8 million from HKD 2.8 million in the same period last year, primarily due to increased gross profit from stone sales and other income[8]. - Revenue from customer contracts for the six months ended June 30, 2022, was HKD 54,757,000, an increase of 4.1% from HKD 51,633,000 in 2021[61]. - Gross profit for the same period was HKD 14,034,000, up 37.5% from HKD 10,233,000 in 2021[61]. - Operating profit for the six months ended June 30, 2022, was HKD 1,889,000, compared to a loss of HKD 32,000 in 2021[61]. - The group reported a loss before tax of HKD 1,836,000 for the six months ended June 30, 2022, compared to a loss of HKD 2,829,000 in the same period of 2021[115]. - Basic and diluted loss per share for the period was HKD 0.15, compared to HKD 0.23 in the previous year, reflecting a 34.8% improvement[61]. Expenses and Costs - Administrative expenses decreased by approximately HKD 0.8 million or 7.7% to about HKD 9.6 million, mainly due to reduced depreciation and legal costs[16]. - The net financial costs for the six months ended June 30, 2022, were HKD 3,725,000, an increase from HKD 2,797,000 in the previous year[110]. Cash Flow and Liquidity - The company reported a net cash outflow from operating activities of HKD 1,069,000 for the six months ended June 30, 2022, compared to HKD 15,453,000 in 2021[75]. - The company's cash and cash equivalents were approximately HKD 0.9 million as of June 30, 2022, a decrease from HKD 2.7 million as of December 31, 2021[27]. - The company's total bank borrowings amounted to approximately HKD 39.2 million, down from HKD 42.9 million as of December 31, 2021[28]. - The company has been unable to draw new loans from banks since November 20, 2020, due to overdue bank loans totaling HKD 39.2 million as of June 30, 2022[84]. - The company is actively seeking other financing sources, including debt or equity financing, to improve its capital structure and reduce overall financing costs[86]. - The board believes that the company will have sufficient working capital to meet its operational needs and financial obligations for at least the next twelve months[92]. Shareholder Information - The company’s major shareholder, Mr. Lei Yurun, holds 792,305,000 shares, representing 63.53% of the issued share capital[44]. - Mr. Lei Yurun is also the beneficial owner of 792,865,000 shares, accounting for 63.57% of the issued share capital[44]. - The company has a short position of 72,515,000 shares held by Mr. Lei Yurun, which is 5.81% of the issued share capital[45]. - The beneficial ownership of Mr. Lei Yurun includes an additional 560,000 shares, representing 0.044% of the issued share capital[45]. Corporate Governance - The company is committed to maintaining strict corporate governance and effective internal control measures[51]. - The company has two independent non-executive directors, which is below the minimum requirement of three as per listing rules[52]. - The audit committee consists of two independent non-executive directors and has reviewed the group’s accounting policies and financial reporting matters[54]. - The remuneration committee is responsible for recommending the remuneration policy for all directors and senior management[57]. - The nomination committee is tasked with reviewing the board's structure and composition regularly[58]. Market and Operational Outlook - The management anticipates strong demand for high-quality marble and granite products due to expected stability and growth in the Hong Kong property market[13]. - The company aims to restore operations by closely collaborating with consumers, suppliers, and subcontractors[13]. - The company has faced significant risks from the COVID-19 pandemic, which continues to impact its business operations[13]. - The company has taken measures to accelerate customer certification, billing, and collection for completed projects affected by the COVID-19 pandemic[91]. - The company is closely monitoring the impact of the COVID-19 pandemic on its existing and potential projects[91]. - The company has reached an agreement with relevant banks to repay all overdue balances by the end of the current fiscal year[88]. Revenue Sources - The increase in revenue was primarily driven by higher earnings from supply and paving services as well as stone sales[14]. - Revenue from supply and paving services for the six months ended June 30, 2022, was HKD 51,109,000, an increase of 2.4% from HKD 49,891,000 in the same period of 2021[4]. - Revenue from stone sales increased significantly to HKD 3,648,000, up 109.5% from HKD 1,742,000 in the previous year[4]. - Major customer A contributed HKD 25,329,000, a substantial increase from HKD 8,126,000 in the previous period, accounting for over 10% of total revenue[104]. - Major customer B's revenue rose to HKD 13,392,000 from HKD 6,813,000, also exceeding the 10% threshold of total revenue[104]. Assets and Liabilities - Total assets as of June 30, 2022, were HKD 273,057,000, slightly down from HKD 274,636,000 as of December 31, 2021[64]. - Total liabilities increased to HKD 191,871,000 from HKD 191,614,000 at the end of 2021[67]. - The company's debt-to-asset ratio was approximately 59% as of June 30, 2022, unchanged from December 31, 2021[29]. - The net current assets of the company were approximately HKD 159.2 million as of June 30, 2022, slightly down from HKD 160.9 million as of December 31, 2021[32]. - Trade receivables as of June 30, 2022, were HKD 6,874,000, down from HKD 11,849,000 at the end of 2021[121]. - Trade payables and warranty payables increased to HKD 46,224,000 as of June 30, 2022, from HKD 42,778,000 as of December 31, 2021[131]. - Total current assets, including insurance claims receivable and other receivables, decreased from HKD 1,301,000 as of December 31, 2021, to HKD 920,000 as of June 30, 2022[128]. - Inventory of finished goods, specifically marble and granite, decreased from HKD 72,364,000 as of December 31, 2021, to HKD 70,377,000 as of June 30, 2022[129]. Legal Matters - The company reported a legal claim of HKD 6,500,000 from a former subcontractor, which it is actively contesting[141].
基石控股(01592) - 2022 - 中期财报