Revenue and Profitability - For the six months ended June 30, 2023, the company's revenue was approximately MOP 77.1 million, a decrease of about MOP 20.9 million or 21.4% compared to the same period last year[7]. - The company recorded a gross profit of MOP 0.6 million for the first half of 2023, down from MOP 2.3 million in the same period of 2022[7]. - Revenue from renovation projects decreased by approximately MOP 53.9 million or 55.5%, primarily due to most projects being completed in 2022[15]. - Revenue from structural engineering projects increased by approximately MOP 33.8 million or 100%, offsetting some losses from renovation projects[15]. - The group's gross profit decreased by approximately MOP 1.8 million or 75.9% compared to the same period last year[18]. - The gross profit margin for renovation projects was 0.7% in the first half of 2023, down from 1.9% in the same period of 2022[16]. - The company reported a loss before tax of MOP 10,258,000, an improvement of 15.2% compared to a loss of MOP 12,108,000 in the previous year[74]. - Total comprehensive loss for the period was MOP 10,911,000, compared to MOP 12,108,000 in 2022, indicating a reduction of 9.9%[74]. - The loss for the six months ended June 30, 2023, was approximately MOP 10.3 million, compared to a loss of MOP 12.1 million in the same period last year[26]. - The loss attributable to the owners of the company for the first half of 2023 was MOP 7,140,000, compared to MOP 7,622,000 in the same period of 2022[112]. Cash Flow and Financial Position - As of June 30, 2023, the total cash and bank balances (excluding bank overdrafts) were approximately MOP 191.8 million, down from MOP 213.4 million as of December 31, 2022[29]. - The group had a bank overdraft of approximately MOP 17 million as of June 30, 2023, compared to none as of December 31, 2022[29]. - Net cash used in operating activities for the six months ended June 30, 2023, was MOP -32,708,000, compared to MOP 50,407,000 in the same period of 2022[79]. - The net decrease in cash and cash equivalents for the six months ended June 30, 2023, was MOP -17,859,000, compared to an increase of MOP 34,164,000 in the same period of 2022[79]. - Cash and cash equivalents at the end of the period were MOP 25,158,000, down from MOP 149,214,000 at the end of June 30, 2022[79]. - Current assets decreased to MOP 269,079,000 from MOP 278,767,000, reflecting a decline of 3.5%[75]. - Current liabilities were reported at MOP 129,612,000, slightly up from MOP 126,512,000 in the previous year[75]. - Net assets decreased to MOP 191,194,000 from MOP 202,085,000, a decline of 5.4%[75]. - Total assets as of June 30, 2023, were MOP 321,754,000, a slight decrease from MOP 328,597,000 as of December 31, 2022[152]. - Total liabilities increased to MOP 130,560,000 as of June 30, 2023, compared to MOP 126,512,000 at the end of 2022[152]. Business Operations and Strategy - The company has 24 ongoing projects as of June 30, 2023, including 4 structural engineering projects and 20 renovation projects[7]. - The company plans to explore opportunities in asset management and investment advisory services to diversify revenue sources[12]. - The company aims to expand its business network and customer base in Macau and mainland China[8]. - The company is engaged in providing construction services, including structural engineering and renovation works, and sales of air purification devices/systems[89]. - The company expects to recognize revenue from unfulfilled contracts in renovation and structural engineering for the fiscal years ending December 31, 2023, and December 31, 2024[94]. Employee and Management Information - The group had 68 full-time employees as of June 30, 2023, an increase from 56 employees as of December 31, 2022, due to market expansion in China[38]. - The company reported a total management compensation of MOP 3,040,000 for the six months ended June 30, 2023, compared to MOP 3,392,000 for the same period in 2022[145]. - The company’s success is largely dependent on the ability to attract and retain key management and technical personnel[43]. Risks and Challenges - Major risks include significant fluctuations in construction material and labor costs, which could severely impact operational performance and financial results[43]. - The company relies heavily on subcontractors, and poor performance or inability to provide services from them may negatively affect operations and profitability[43]. - The company faces uncertainties due to geopolitical tensions between the US and the EU, impacting global economic conditions[43]. Shareholder and Corporate Governance - As of June 30, 2023, major shareholders include Mr. Liu, holding 390 million shares (65%), and Mr. Ye, holding 60 million shares (10%)[49]. - The company has adopted a share option scheme effective from September 10, 2018, aimed at incentivizing eligible participants contributing to the group[56]. - The company has complied with all applicable corporate governance code provisions during the six months ended June 30, 2023[62]. - The audit committee, established on August 17, 2018, oversees the integrity of financial statements and the appointment of external auditors[67]. Acquisitions and Investments - The company completed the acquisition of 100% of the issued share capital of Jin Ying for a cash consideration of RMB 10,000,000 (approximately MOP 11,982,000) on January 16, 2023[138]. - The net cash outflow for the acquisition of Jin Ying was MOP 8,737,000 after accounting for cash and cash equivalents acquired[142]. - The acquisition of Jin Ying is expected to supplement the company's construction business in China[138]. - The company has an obligation to invest RMB 40,000,000 (approximately MOP 44,460,000) in Jin Ying as of June 30, 2023[150]. Other Financial Information - Other income increased to approximately MOP 4.1 million, primarily due to bank interest income of about MOP 3.5 million, up from MOP 3.0 million in the previous period[21]. - Impairment losses decreased by MOP 3.3 million or 56.8% due to the settlement of older receivables during the review period[24]. - Administrative expenses increased by approximately MOP 0.9 million to MOP 12.6 million, attributed to the expansion in the Chinese market[25]. - The company recognized impairment losses of MOP 6,529,000 for the six months ended June 30, 2023, slightly higher than MOP 6,303,000 in the same period last year[122].
奥邦建筑(01615) - 2023 - 中期财报