Project and Contract Management - The Group had eight major projects on hand with an awarded contract sum of HK$10.0 million or above as of September 30, 2022[10]. - During the six months ended September 30, 2022, the Group completed five major projects with an awarded contract sum of HK$10.0 million or above[10]. - In July 2022, Wecon Construction was admitted to Group C on probation, allowing it to tender for contracts exceeding HK$400 million, with a probationary limit of HK$1.5 billion[13]. - Subsequent to September 30, 2022, the Group was awarded two sizeable contracts for re-development projects with an aggregate contract sum of approximately HK$1 billion[14]. - The Group's indirect wholly-owned subsidiary, Wei Gong Construction, was included in the approved public works contractor list, allowing it to bid for contracts over HK$400 million[16]. - The Group secured two large contracts for reconstruction projects totaling approximately HK$1 billion after September 30, 2022[16]. Financial Performance - The Group's revenue decreased by approximately HK$87.0 million or approximately 16.2%, from approximately HK$538.4 million for the six months ended September 30, 2021, to approximately HK$451.4 million for the six months ended September 30, 2022[24][28]. - Revenue from building construction services decreased by approximately HK$173.8 million or approximately 35.6%, from approximately HK$488.8 million to approximately HK$315.0 million during the same period[25][29]. - Revenue from RMAA works services increased significantly by approximately HK$86.8 million or approximately 175.0%, from approximately HK$49.6 million to approximately HK$136.4 million[26][30]. - The gross profit decreased by approximately HK$13.4 million or approximately 39.3%, from approximately HK$34.1 million to approximately HK$20.7 million[35]. - The gross profit margin decreased from approximately 6.3% to approximately 4.6%, representing a decrease of approximately 1.7 percentage points[35]. - The net profit of the Group decreased by approximately HK$11.0 million or approximately 80.9%, from approximately HK$13.6 million for the six months ended September 30, 2021 to approximately HK$2.6 million for the six months ended September 30, 2022[49]. - Profit before tax decreased significantly to HK$2,322,000, a decline of 85.5% from HK$15,948,000 in the prior period[135]. - The company reported a profit for the period of HK$2,571,000, compared to HK$13,576,000 in the prior year, marking a decline of around 81.0%[172]. Cost Management - The cost of sales decreased by approximately HK$73.5 million or approximately 14.6%, from approximately HK$504.2 million to approximately HK$430.7 million[32][33]. - The gross profit of building construction services decreased by approximately HK$23.5 million or approximately 63.2%, from approximately HK$37.2 million for the six months ended 30 September 2021 to approximately HK$13.7 million for the six months ended 30 September 2022[36]. - The gross profit margin of building construction services decreased from approximately 7.6% for the six months ended 30 September 2021 to approximately 4.4% for the six months ended 30 September 2022[38]. - The gross profit of RMAA works services was approximately HK$7.0 million for the six months ended 30 September 2022, compared to a gross loss of approximately HK$3.1 million for the six months ended 30 September 2021[41]. Operational Challenges - The COVID-19 pandemic has created challenges, causing delays in raw material delivery and project progress, but the Group has taken measures to maintain construction works[10]. - The management will continuously monitor the pandemic's impact on the Group's business and financial performance[10]. Corporate Governance - The Group's commitment to corporate governance emphasizes transparency, accountability, and independence, with compliance to applicable code provisions[75]. - The Board comprises six directors, including three executive directors and three independent non-executive directors, ensuring compliance with the Listing Rules[86]. - The Group emphasizes transparency, accountability, and independence in its corporate governance practices[81]. - The Chairman and CEO roles are held by Mr. Tsang Ka Yip, which the Board believes is beneficial given his experience and knowledge of the industry[79]. Employee and Staff Costs - The total staff costs (excluding Directors' remuneration) of the Group were approximately HK$45.0 million for the six months ended September 30, 2022, compared to HK$42.8 million for the six months ended September 30, 2021[54]. - The Group's total employee count as of September 30, 2022, was 213 full-time employees, a decrease from 223 full-time employees as of September 30, 2021[57]. - The Group's profit before tax for the six months ended September 30, 2022, included employee benefit expenses of HK$43,387,000, an increase from HK$41,075,000 in 2021[198]. Cash Flow and Liquidity - The Group's current ratio as of September 30, 2022, was approximately 2.2 times, an increase from 2.1 times as of March 31, 2022[60]. - The Group had no outstanding bank borrowings as of September 30, 2022, and lease liabilities amounted to approximately HK$6.6 million, down from HK$7.9 million as of March 31, 2022[65]. - The gearing ratio as of September 30, 2022, was approximately 2.4%, a decrease from 2.8% as of March 31, 2022[68]. - Cash and bank balances decreased to HK$24,574,000 from HK$64,884,000 as of March 31, 2022[137]. - The company reported a net decrease in cash and cash equivalents of HK$37,777,000 compared to HK$78,172,000 in the prior period, showing a reduction in cash outflow[146]. Shareholder Information - The Board has resolved not to declare any interim dividend for the six months ended September 30, 2022, consistent with the previous year[91]. - The company paid dividends amounting to HK$9,536,000 to shareholders during the period, impacting retained earnings[142]. - The company did not purchase, sell, or redeem any shares during the six months ended September 30, 2022[116]. Future Outlook - The management remains prudently optimistic about the prospects of the construction industry in Hong Kong[14]. - The Group plans to invest in building construction-related services to enhance capabilities and provide synergies to existing business[15]. - The Group aims to differentiate itself through building information modeling services, providing creative technical solutions to customers[15].
伟工控股(01793) - 2023 - 中期财报