Financial Performance - Revenue for the six months ended September 30, 2022, was HKD 111,401,000, representing a 1.6% increase from HKD 109,666,000 in the same period last year[2]. - Gross profit decreased by 40.0% to HKD 16,449,000, down from HKD 27,424,000, resulting in a gross margin of 14.8% compared to 25.0%[2]. - Profit attributable to owners of the company was HKD 6,399,000, a decline of 46.9% from HKD 12,046,000 in the previous year[2]. - Basic and diluted earnings per share decreased to 0.8 cents from 1.6 cents, a reduction of 0.8 cents[2]. - Total comprehensive loss for the period was HKD 2,366,000, compared to a total comprehensive income of HKD 12,929,000 in the previous year[6]. - The company reported a profit before tax of HKD 7,272,000 for the six months ended September 30, 2022, compared to HKD 14,209,000 for the same period in 2021, representing a decrease of 48.8%[22]. - Net profit attributable to shareholders decreased from approximately HKD 12.0 million to about HKD 6.4 million, a reduction of approximately 46.7%[43]. Revenue Breakdown - Revenue from steel and metal engineering services was HKD 96,495,000, down 3.9% from HKD 99,914,000 in the previous year[22]. - Sales of steel and metal products increased significantly to HKD 14,906,000, up 53.5% from HKD 9,752,000 in the prior year[22]. - Total revenue for the reporting period was approximately HKD 111.4 million, an increase of about 1.6% from HKD 109.7 million in the same period last year[43]. Expenses and Costs - Administrative expenses for the period were HKD 12,329,000, slightly lower than HKD 13,801,000 in the previous year[22]. - Direct costs increased by approximately 15.5% to about HKD 95.0 million, up from approximately HKD 82.2 million in the previous year[48]. - Other income and gains amounted to HKD 3,175,000, compared to HKD 859,000 in the prior year, indicating a significant increase[22]. - Other income increased from approximately HKD 0.9 million to about HKD 3.2 million, primarily due to government subsidies received[51]. - Administrative expenses decreased by approximately 10.8% to about HKD 12.3 million, down from approximately HKD 13.8 million[52]. Assets and Liabilities - Non-current assets decreased to HKD 35,264,000 from HKD 44,702,000, primarily due to a reduction in property, plant, and equipment[8]. - Current assets totaled HKD 174,012,000, slightly down from HKD 174,484,000, with inventory decreasing to HKD 23,917,000 from HKD 35,123,000[8]. - Trade receivables increased to HKD 30,438,000 from HKD 24,529,000, indicating improved collection efforts[8]. - Cash and cash equivalents increased to HKD 59,726,000 from HKD 54,989,000, reflecting better liquidity management[8]. - Total liabilities decreased to HKD 20,206,000 from HKD 27,289,000, indicating a reduction in financial obligations[10]. - Trade receivables aged 0 to 30 days increased to HKD 17,442,000 from HKD 8,206,000, indicating improved cash flow management[39]. - The debt-to-equity ratio as of September 30, 2022, was approximately 1.8%, unchanged from March 31, 2022[55]. Corporate Governance and Compliance - The company has appointed forensic accountants to investigate alleged misconduct by certain directors and is implementing corrective actions based on their recommendations[88]. - The company has engaged an independent firm to assist in reviewing internal controls and is enhancing its internal control procedures as per their suggestions[88]. - The company is in the process of publishing all outstanding financial results as required by listing rules, following the completion of audits for the fiscal years ending March 31, 2021, and March 31, 2022[88]. - The company has confirmed compliance with listing rule 13.24 by demonstrating normal business operations in all material aspects[88]. - The company has taken steps to ensure that involved directors no longer hold any positions on the board or in senior management[88]. - The company has suspended trading of its shares since April 22, 2021, and will continue to do so until further notice[94]. - The audit committee, composed entirely of independent non-executive directors, has reviewed and approved the unaudited consolidated financial statements for the reporting period[92]. - The company is committed to providing updates to shareholders and potential investors regarding progress towards meeting the conditions of the resumption guidance[88]. - The company has maintained the required public float as per listing rules as of the announcement date[90]. - The company will publish its interim report on its website after completing the audit process for the relevant financial results[93]. Future Plans and Investments - The company plans to focus on the construction business in Hong Kong, benefiting from government policies aimed at increasing public housing supply by approximately 50% over the next five years[44]. - The group invested approximately HKD 1.3 million in the purchase of properties, plants, and equipment during the reporting period[62]. - As of September 30, 2022, the total amount of contracted but not provided for expenditures related to the acquisition of certain plants and equipment was approximately HKD 0.3 million[64]. - The net proceeds from the global offering amounted to approximately HKD 130.0 million after deducting listing expenses[70]. - As of September 30, 2022, the group had utilized HKD 57.059 million of the net proceeds, with HKD 66.966 million remaining[73]. Risk Management - The group plans to continue monitoring foreign exchange risks and will consider hedging significant foreign exchange risks if necessary[60]. - The group has no significant contingent liabilities as of September 30, 2022[67]. - The group has not been involved in any claims or litigation that would have a significant adverse effect on its business, operating results, or financial condition as of September 30, 2022[66].
恒益控股(01894) - 2023 Q2 - 季度财报