Revenue Performance - Revenue for the six months ended 30 September 2022 amounted to approximately HK$179,842,000, an increase of 20.5% compared to HK$149,225,000 for the same period in 2021[12] - The Group's total revenue for the Reporting Period increased by approximately HK$30,617,000 or approximately 20.5%, from approximately HK$149,225,000 to approximately HK$179,842,000[21] - Revenue from foundation construction contributed approximately 83.4% of total revenue during the Reporting Period, compared to 87.4% in the previous year[15] - Revenue from ground investigation services accounted for approximately 15.7% of total revenue, up from approximately 10.6% in the same period last year[15] - Revenue from ground investigation services increased by approximately 78.7%, from approximately HK$15,753,000 to approximately HK$28,150,000, due to an increase in the number of sizeable projects tendered[25] - Revenue from financial services amounted to approximately HK$1,683,000 for the Reporting Period, compared to approximately HK$1,634,000 for the six months ended 30 September 2021[28] Profitability - Profit attributable to equity shareholders for the Reporting Period was approximately HK$473,000, a decrease of 70.4% from HK$1,595,000 in the previous year[12] - Basic and diluted earnings per share for the Reporting Period were approximately HK cents 0.05, down from HK cents 0.17 in the same period last year[12] - The gross profit for the same period was HK$26,004,000, down from HK$33,421,000 year-on-year[121] - Profit from operations decreased to HK$6,700,000 compared to HK$8,391,000 in the previous year[121] - The Group recorded a net profit of approximately HK$473,000 for the Reporting Period, a decrease from approximately HK$1,595,000 in the corresponding period in 2021, mainly due to increased assessable profits and related income tax expenses[55] Expenses and Costs - The gross profit margin of the Group's foundation construction segment decreased to approximately 10.4% from approximately 20.0% due to increased material and subcontracting costs[30] - The gross profit of the Group's ground investigation services segment increased by approximately 98.8%, from approximately HK$4,363,000 to approximately HK$8,674,000, with a gross profit margin increase to approximately 30.8%[31] - General and administrative expenses decreased by approximately 3.5% to approximately HK$24,998,000 compared to approximately HK$25,912,000 for the corresponding period in 2021[40] - Finance costs for the Reporting Period were approximately HK$5,386,000, slightly down from approximately HK$5,445,000 for the six months ended 30 September 2021[42] - The total remuneration cost incurred by the group for the reporting period was approximately HK$31,526,000, compared to HK$32,090,000 for the six months ended September 30, 2021[118] Taxation - The tax expense for the Reporting Period was approximately HK$799,000, compared to an income tax credit of approximately HK$369,000 for the six months ended 30 September 2021, attributed to an increase in assessable profits[55] Financial Position - As of September 30, 2022, the Group's total interest-bearing borrowings decreased to approximately HK$239,256,000 from approximately HK$245,357,000 as of March 31, 2022, representing a reduction of about 2.5%[94] - The Group's net current assets increased to approximately HK$143,012,000 as of September 30, 2022, up by approximately HK$1,987,000 from HK$141,025,000 as of March 31, 2022[94] - The Group's cash and bank balances rose to approximately HK$142,491,000 as of September 30, 2022, compared to approximately HK$132,294,000 as of March 31, 2022, reflecting an increase of about 7.5%[96] - The gearing ratio as of September 30, 2022, was approximately 139.6%, a decrease from approximately 142.9% as of March 31, 2022[98] - Current liabilities increased to HK$299,775,000 from HK$284,621,000, reflecting a rise of approximately 5.5%[127] - Total assets less current liabilities as of September 30, 2022, were HK$173,052,000, slightly down from HK$173,705,000 as of March 31, 2022[127] Investments and Acquisitions - The Company acquired 35% of the issued share capital of Matsu Gami, which provides food and beverage catering services utilizing well-known IP rights[89] - The Group plans to utilize approximately HK$70.7 million for further possible acquisitions, including a potential acquisition of 16% of Matsu Gami's issued share capital[81] - The Group intends to change the use of approximately HK$76.7 million of the unutilized proceeds to fund the acquisition of approximately 51.315% of Blue Marble Limited, with a total consideration of HK$320 million[79] - The Group utilized approximately HK$20.8 million from the Placing proceeds for investment and financial services, and plans to use up to HK$36.5 million in the next 12 months to develop its money lending business[78] Market Outlook - The Board anticipates a steady recovery in the construction and foundation industry in Hong Kong despite the recent Omicron outbreak, indicating a cautious approach to potential project tenders[84] - The Board believes that the prospects of the IP rights licensing industry are improving despite the adverse economic impacts of COVID-19 measures in certain cities in China[89] Other Financial Information - The company had no contingent liabilities as of September 30, 2022, and March 31, 2022[114] - There were no significant investments or material acquisitions or disposals of subsidiaries during the reporting period[114] - The company reported a net movement in fair value reserve of HK$1,273,000, compared to HK$1,203,000 in the previous year, indicating a positive change in asset valuation[124] - The share of other comprehensive income from investments accounted for using the equity method showed a loss of HK$ (325,000), compared to a loss of HK$ (48,000) in the previous year[124]
宏基集团控股(01718) - 2023 - 中期财报