Revenue Performance - Total revenue for construction and engineering services was approximately HKD 165.4 million for the six months ended June 30, 2022, a decrease of about 9.9% compared to HKD 183.5 million for the same period in 2021[21]. - Total revenue decreased by approximately HKD 17.3 million or 9.3% to approximately HKD 169.3 million for the six months ended June 30, 2022, compared to approximately HKD 186.6 million for the same period in 2021[32]. - Revenue from construction and engineering services decreased by approximately HKD 18.1 million or 9.9% to approximately HKD 165.4 million for the six months ended June 30, 2022, primarily due to a reduction in new contracts obtained since the second half of 2021[33]. - Revenue from property-related services increased by approximately HKD 0.8 million to approximately HKD 3.9 million for the six months ended June 30, 2022, driven by contract renewals in property management consulting services[34]. - For the six months ended June 30, 2022, the company reported revenue of HKD 169,251 thousand, a decrease of 9.3% from HKD 186,588 thousand in the same period of 2021[72]. - The construction and engineering services segment generated revenue of HKD 165,364,000, down 9.9% from HKD 183,522,000 in the prior year[103]. - The property-related services segment reported revenue of HKD 3,887,000, an increase of 27% from HKD 3,066,000 in the previous year[103]. Profitability and Loss - Gross profit increased by approximately 122.2% to approximately HKD 2 million for the six months ended June 30, 2022, compared to approximately HKD 0.9 million for the same period in 2021[35]. - Gross profit margin improved to approximately 1.2% for the six months ended June 30, 2022, compared to approximately 0.5% for the same period in 2021[35]. - For the six months ended June 30, 2022, the net loss was approximately HKD 19.3 million, compared to a net loss of approximately HKD 10.6 million for the same period in 2021, resulting in a net loss margin of about 11.4%[46]. - The company incurred a loss before tax of HKD 19,239 thousand, which is an increase of 94.5% from a loss of HKD 9,918 thousand in the previous year[72]. - The total comprehensive loss attributable to equity holders for the period was HKD 19,548 thousand, compared to HKD 10,591 thousand in the prior year, reflecting a 84.5% increase in losses[72]. - The company reported a loss before tax of HKD 19,344,000 for the six months ended June 30, 2022, compared to a loss of HKD 10,620,000 for the same period in 2021, representing an increase in loss of approximately 82%[132]. Cost Management - Administrative expenses decreased by approximately 29.4% to approximately HKD 9.6 million for the six months ended June 30, 2022, compared to approximately HKD 13.6 million for the same period in 2021[40]. - The total employee costs for the six months ended June 30, 2022, were approximately HKD 12.9 million, down from approximately HKD 16.6 million for the same period in 2021, reflecting a reduction of about 22%[57]. - Employee costs, including directors' remuneration, decreased to HKD 12,916,000 in 2022 from HKD 16,609,000 in 2021, a reduction of about 22%[132]. Financial Position - As of June 30, 2022, the group's cash and bank balances totaled approximately HKD 185.3 million, slightly down from approximately HKD 186.3 million as of December 31, 2021[49]. - The capital debt ratio as of June 30, 2022, was approximately 0.4%, a decrease from about 0.6% as of December 31, 2021, due to repayment of lease liabilities[51]. - The group had no bank borrowings as of June 30, 2022, maintaining a conservative financial management approach[49]. - The company’s net asset value as of June 30, 2022, was HKD 206,140 thousand, down from HKD 225,688 thousand at the end of 2021, indicating a decline of 8.7%[77]. - Total assets as of June 30, 2022, amounted to HKD 256,109 thousand, down from HKD 297,879 thousand as of December 31, 2021, representing a decrease of 14.0%[74]. - Current liabilities decreased to HKD 51,422 thousand from HKD 73,730 thousand, a reduction of 30.2%[74]. - The company reported a decrease in trade and other receivables to HKD 60,700 thousand from HKD 94,927 thousand, a decline of 36.0%[74]. Risk Management - The group faced challenges in its construction and renovation business in Cambodia due to the ongoing pandemic, focusing on reducing employee costs to lower operating expenses[25]. - The group faced foreign exchange risk primarily from cash and bank deposits denominated in USD, amounting to approximately HKD 37.1 million as of June 30, 2022[55]. - The group adopted strict preventive measures in its sites and offices to mitigate risks associated with the COVID-19 outbreak, which did not significantly impact operations in Hong Kong[24]. Strategic Initiatives - The group implemented a competitive pricing strategy to maintain competitiveness in the slope engineering segment during the reporting period[24]. - The group continued to focus on project management responsibilities and outsourced most required works to subcontractors to undertake more construction projects[24]. - The company plans to continue diversifying its business strategy to enhance future development and revenue base[28]. - The company will closely monitor the market conditions in the construction and engineering services sector and respond accordingly to changes[29]. - The group successfully resumed bidding for public sector LPM projects after the lifting of a suspension imposed by regulatory authorities[24]. Shareholder Information - The ownership interest of Mr. Chan in the company is approximately 54.79%, holding 920,480,000 shares through a controlled corporation[185]. - As of June 30, 2022, the major shareholder, Xingyou, holds 920,480,000 shares, representing approximately 54.79% of the company's equity[188]. - The total number of issued and paid-up shares is 1,680,000,000, unchanged from December 31, 2021[164]. Compliance and Governance - The company has complied with the corporate governance code and has adopted all code provisions as its own corporate governance practices[196]. - The company has not identified any significant issues that would affect the preparation of the financial statements in accordance with Hong Kong Accounting Standards[69]. - The company is currently evaluating the potential impact of new and revised Hong Kong Financial Reporting Standards on its financial statements[97]. - The company’s management has indicated that the revised accounting standards are not expected to have a significant impact on the interim financial statements[97].
致浩达控股(01707) - 2022 - 中期财报