Financial Performance - Revenue for the six months ended June 30, 2022, was approximately HK$31.0 million, a decrease of approximately 58.4% compared to HK$74.5 million in the same period last year[7] - Net loss for the period was approximately HK$5.2 million, representing a decrease of approximately 73.6% from a net loss of HK$19.7 million in the corresponding period of 2021[7] - Basic and diluted loss per share was approximately HK$0.64 cents, compared to approximately HK$2.91 cents loss per share in 2021[7] - Gross profit for the period was approximately HK$8.1 million, compared to a gross loss of approximately HK$4.9 million in the same period last year[12] - Operating loss for the six months was approximately HK$4.7 million, a significant improvement from an operating loss of HK$19.3 million in 2021[12] - Total comprehensive expense for the period was approximately HK$5.2 million, down from HK$19.7 million in the previous year[12] - The Group reported other income and net gains of approximately HK$0.27 million, compared to HK$0.14 million in the previous year[12] - The company reported a loss of HK$5,169,000 for the six months ended June 30, 2022, compared to a loss of HK$19,692,000 for the same period in 2021, indicating a significant reduction in losses[17] - Net loss decreased by approximately HK$14.5 million to approximately HK$5.2 million in the Reporting Period, representing a decrease of approximately 73.6% compared to approximately HK$19.7 million in the six months ended 30 June 2021[76] Dividends and Shareholder Returns - The Directors do not recommend the payment of an interim dividend for the six months ended June 30, 2022, consistent with the previous year[7] - No dividend was recommended for the six months ended June 30, 2022, consistent with the previous year[49] - The Company did not recommend payment of interim dividends to shareholders for the Reporting Period[126] Assets and Liabilities - Total assets decreased from HK$74,455,000 as of December 31, 2021, to HK$62,592,000 as of June 30, 2022, representing a decline of approximately 16.1%[13] - Total equity fell from HK$17,295,000 to HK$12,126,000, a decrease of about 29.8%[13] - Current liabilities increased from HK$52,021,000 to HK$47,031,000, showing a reduction of approximately 9.6%[15] - Total liabilities decreased from HK$57,160,000 to HK$50,466,000, a decline of approximately 11.7%[16] - Non-current liabilities decreased from HK$5,139,000 to HK$3,435,000, a reduction of about 33.1%[15] - Trade and other payables decreased from HK$32,181,000 to HK$21,755,000, a decline of approximately 32.4%[15] - Trade receivables as of June 30, 2022, amounted to HK$15,611,000, down from HK$19,135,000 as of December 31, 2021, reflecting a decrease of 18.5%[54] - Total trade and other payables as of June 30, 2022, were HK$21,755,000, a decrease from HK$32,181,000 as of December 31, 2021, representing a 32.4% reduction[63] Cash Flow and Financial Position - Net cash used in operating activities was HK$1,544,000 for the six months ended June 30, 2022, compared to HK$8,030,000 for the same period in 2021, indicating an improvement in cash flow[20] - Cash and cash equivalents at the end of the period were HK$(7,338,000), down from HK$10,676,000 in 2021, reflecting a decrease of approximately 168.7%[21] - Cash flows from investing activities generated a net cash inflow of HK$122,000, compared to a net cash outflow of HK$4,430,000 in 2021, showing a positive shift[20] - The Group had cash and bank balance of approximately HK$2.4 million as at 30 June 2022, an increase from approximately HK$0.5 million as at 31 December 2021[80] Operational Efficiency - Administrative and other operating expenses were reduced to approximately HK$12.8 million from HK$14.8 million in 2021[12] - Total staff costs, including directors' remuneration, were HK$17,545,000, a significant decrease of 62.3% from HK$46,586,000 in the previous year[40] - Depreciation of owned assets was HK$3,630,000, down from HK$4,281,000, while depreciation of right-of-use assets increased to HK$3,793,000 from HK$2,532,000[40] - The Group's current ratio was approximately 1.0, with total assets of approximately HK$62.6 million, financed by total liabilities of approximately HK$50.5 million and shareholders' equity of approximately HK$12.1 million[80] Business Operations - The Group operates primarily in Hong Kong and Macau, focusing on concrete demolition services as a subcontractor[1] - The Group has been operating in the concrete demolition industry since 1985 in Hong Kong and since 2006 in Macau, focusing on subcontracting services[65] - The Group's services are required in various construction scenarios, including public and private sector projects, indicating a diverse client base[65] Compliance and Governance - The unaudited condensed consolidated financial statements for the six months ended June 30, 2022, have been prepared in accordance with Hong Kong Accounting Standard 34[25] - The financial statements should be read in conjunction with the Group's audited consolidated annual financial statements for the year ended December 31, 2021[25] - The Audit Committee reviewed the Group's unaudited condensed consolidated financial statements for the Reporting Period, confirming compliance with applicable accounting standards and adequate disclosures[128] Shareholding and Interests - Directors Mr. Cheung Shek On and Mr. Chan Yuk Sing each held 130,900,000 shares, representing 16.23% of the shareholding[96] - Director Mr. Kwok Shun Tim held 126,000,000 shares, representing 15.62% of the shareholding[96] - Sino Continent Holdings Limited holds 130,900,000 ordinary shares, representing 16.23% of the total issued share capital of the Company[105] - Supreme Voyage Limited also holds 130,900,000 ordinary shares, equivalent to 16.23% of the total issued share capital[109] - Applewood Developments Limited owns 126,000,000 ordinary shares, accounting for 15.62% of the total issued share capital[109] - As of June 30, 2022, there are no short positions held by Directors or chief executives in the Company's shares[101] - The Company did not purchase, sell, or redeem any of its listed securities during the reporting period[118] - There are no competing interests reported by the Directors or controlling shareholders during the reporting period[117] - The Company is not aware of any other persons/entities with interests or short positions in shares as of June 30, 2022[116] Employee and Remuneration Policies - The Group's remuneration policies include performance-based bonuses and other benefits, reflecting a commitment to employee development and internal promotion[88] - As of June 30, 2022, the Group had 99 full-time employees, a slight decrease from 100 employees as of December 31, 2021[87] - Staff costs for the reporting period were approximately HK$17.5 million, significantly lower than HK$46.6 million for the same period in 2021, indicating a reduction of about 62.5%[87]
景联集团(01751) - 2022 - 中期财报