Financial Performance - For the six months ended September 30, 2022, the group's revenue decreased by approximately HKD 8.4 million or 7.9% to about HKD 97.3 million, compared to HKD 105.7 million for the same period in 2021[21]. - The group's gross profit increased by approximately HKD 1.7 million or 34.7% to about HKD 6.6 million, with a gross profit margin of approximately 6.8%, up from 4.6% in the previous year[22]. - The company recorded a net loss of approximately HKD 4.7 million for the six months ended September 30, 2022, an increase of 261.5% compared to a net loss of approximately HKD 1.3 million for the same period in 2021[27]. - Revenue for the six months ended September 30, 2022, was HKD 97,288,000, a decrease of 8% compared to HKD 105,714,000 for the same period in 2021[52]. - The company reported a loss attributable to equity holders of HKD 4,653,000, compared to a loss of HKD 1,296,000 in the same period last year, indicating a significant increase in losses[52]. - Basic and diluted loss per share was HKD 0.97, compared to HKD 0.27 for the same period in 2021[52]. - The company reported a pre-tax loss of HKD 10,006,000 for the six months ended September 30, 2022, compared to a loss of HKD 9,158,000 in the same period of 2021[80]. Expenses and Costs - Administrative and other operating expenses for the six months ended September 30, 2022, were approximately HKD 8.7 million, an increase of 61.1% compared to about HKD 5.4 million in the same period last year[24]. - Financial costs increased by approximately HKD 1.9 million or 271.4% to about HKD 2.6 million, primarily due to higher interest rates on new borrowings[25]. - Total direct costs for the six months ended September 30, 2022, were HKD 6,903 thousand, up from HKD 6,176 thousand in 2021, reflecting an increase of 11.7%[83]. - Administrative expenses increased to HKD 3,103 thousand for the six months ended September 30, 2022, compared to HKD 2,982 thousand in 2021, marking a rise of 4.1%[83]. Cash Flow and Liquidity - As of September 30, 2022, the company's cash and cash equivalents totaled approximately HKD 23.1 million, up from approximately HKD 20.7 million as of March 31, 2022, reflecting a net cash inflow of approximately HKD 2.4 million from operating and financing activities[28]. - The net cash flow from operating activities for the six months ended September 30, 2022, was HKD 85,000, compared to a net cash outflow of HKD 9,770,000 for the same period in 2021[61]. - The net increase in cash and cash equivalents was HKD 2,452,000, compared to a decrease of HKD 9,439,000 in the same period of 2021[61]. - Cash and bank balances increased to HKD 20,068,000 from HKD 17,616,000, showing a positive cash flow trend[54]. Market Conditions and Strategy - The decrease in revenue was mainly attributed to a reduction in the number of large projects in the market during the reporting period[21]. - The ongoing COVID-19 pandemic and geopolitical tensions have created long-term changes in the overall economy, impacting market conditions[19]. - The company aims to leverage future opportunities as the market is expected to recover, following the government's emphasis on providing more public and private housing units[19]. - The company continues to optimize operational management and cost control, demonstrating effective business strategies despite the revenue decline[18]. - The company remains committed to enhancing resilience against market challenges and adapting to the new normal post-COVID-19[19]. Shareholder and Corporate Governance - The board of directors resolved not to declare any interim dividend for the six months ended September 30, 2022, consistent with the previous year[44]. - Major shareholders include Wan Shih Cheng International Investment Limited, holding 360 million shares, representing 75% of the total issued share capital[137]. - The company has complied with all provisions of the corporate governance code during the six months ending September 30, 2022[147]. - The audit committee, consisting of independent non-executive directors, reviewed and approved the unaudited interim financial statements for the six months ending September 30, 2022[153]. Employee and Management Information - The total employee costs incurred by the company for the six months ended September 30, 2022, amounted to approximately HKD 10.0 million, compared to approximately HKD 9.2 million for the same period in 2021[43]. - The company employed a total of 54 full-time employees as of September 30, 2022, a decrease from 56 employees as of March 31, 2022[43]. - The total remuneration for key management personnel for the six months ended September 30, 2022, was 1,711 thousand HKD, slightly up from 1,704 thousand HKD in the previous year[122]. Legal and Compliance Matters - The company is currently involved in ongoing legal proceedings regarding a claim of approximately 44.0 million HKD from a subcontractor, with a counterclaim of about 8.0 million HKD[125]. - The company has no provisions made in the interim financial statements for the ongoing legal claims as the outcomes remain uncertain[125]. Assets and Liabilities - Total assets as of September 30, 2022, were HKD 200,411,000, a slight decrease from HKD 206,548,000 as of March 31, 2022[54]. - The company's debt-to-equity ratio increased from approximately 34.7% as of March 31, 2022, to approximately 39.8% as of September 30, 2022, primarily due to an increase in borrowings during the six months[28]. - Current liabilities decreased significantly to HKD 23,706,000 from HKD 75,957,000, indicating improved liquidity[54]. - Non-current liabilities increased to HKD 50,242,000 from HKD 44,000, reflecting new borrowings[56].
耀高控股(01796) - 2023 - 中期财报