Financial Performance - The group's revenue for the six months ended June 30, 2023, decreased by approximately MOP 35.5 million or 54.2% to MOP 30.0 million compared to MOP 65.5 million for the same period in 2022[12]. - The total value of newly awarded renovation projects for the six months ended June 30, 2023, was approximately MOP 27.4 million, a significant decrease from MOP 172.1 million for the same period in 2022[9]. - The gross profit for the six months ended June 30, 2023, decreased by approximately MOP 7.4 million or 61.1% to MOP 4.7 million, down from MOP 12.1 million for the same period in 2022[16]. - The gross profit margin decreased from approximately 18.5% for the six months ended June 30, 2022, to approximately 15.7% for the same period in 2023[16]. - The company reported a loss attributable to owners of approximately MOP 9.4 million for the six months ended June 30, 2023, compared to a profit of approximately MOP 0.3 million for the same period in 2022[25]. - The loss per share for the six months ended June 30, 2023, was MOP 2.3 cents, a decrease of MOP 2.4 cents compared to earnings of MOP 0.1 cents per share in the prior year[26]. - The company incurred an operating loss before tax of MOP 9,373,000, compared to a profit of MOP 181,000 in the previous year[82]. - Total comprehensive loss for the period amounted to MOP (9,328,000), compared to a total comprehensive income of MOP 261,000 in the prior year[85]. Expenses and Costs - Administrative expenses increased by approximately MOP 2.4 million or 18.7% to MOP 15.2 million for the six months ended June 30, 2023, compared to MOP 12.8 million for the same period in 2022[18]. - Other income, gains, and losses decreased from approximately MOP 1.5 million for the six months ended June 30, 2022, to approximately MOP 0.9 million for the same period in 2023[17]. - The total employee cost for the six months ended June 30, 2023, was MOP 16.3 million, a decrease from MOP 18.4 million for the same period in 2022[51]. - The cost of services provided was MOP 25,290,000, down from MOP 53,418,000 in the previous year[118]. Assets and Liabilities - The total value of unfinished renovation and construction projects as of June 30, 2023, was approximately MOP 72.7 million, compared to MOP 148.0 million as of June 30, 2022[9]. - As of June 30, 2023, the company had net current assets of approximately MOP 8.9 million, a decrease of approximately MOP 8.5 million from MOP 17.4 million as of December 31, 2022[30]. - The company's cash and bank balances were MOP 17.7 million as of June 30, 2023, down from MOP 22.4 million as of December 31, 2022[31]. - Current assets decreased significantly to MOP 75,400,000 from MOP 102,336,000, representing a decline of 26.3%[88]. - Total liabilities decreased from MOP 84,967,000 to MOP 66,481,000, a reduction of 21.8%[88]. - Net assets decreased to MOP 114,145,000 from MOP 123,473,000, indicating a decline of 7.5%[91]. Cash Flow and Financing - Cash and cash equivalents decreased to MOP 5,818,000 from MOP 18,257,000, a decline of 68.2%[100]. - Operating cash flow net amount was negative MOP 7,788,000, an improvement from negative MOP 16,767,000 in the previous year[97]. - The company incurred a total financing cash outflow of MOP 2,005,000, compared to an inflow of MOP 3,745,000 in the same period last year[97]. - The group's financing costs decreased to approximately MOP 0.5 million for the six months ended June 30, 2023, down from MOP 0.7 million for the same period in 2022[23]. Shareholder Information - The board of directors resolved not to declare any interim dividend for the six months ended June 30, 2023, consistent with the previous year[27]. - The company did not declare or pay any dividends for the six months ended June 30, 2023, and 2022[122]. - As of June 30, 2023, SHKMCL holds a beneficial interest of 300,000,000 shares, representing 75% of the company's equity[65]. - The company has not granted any share options under the share option scheme since its adoption on January 18, 2017[66]. Risk Management - The management is monitoring foreign exchange and interest rate risks, with no current hedging policies in place[42][43]. - The group’s credit risk is considered limited due to its counterparties being highly rated banks by international credit rating agencies[47]. - The group’s management believes that credit risk is well managed and resolved, with a significant reduction in concentration risk compared to the previous year[47]. - As of June 30, 2023, the group faced a concentration credit risk from its top five customers' trade receivables and contract assets amounting to MOP 14.2 million, representing approximately 37.2% of total trade receivables and contract assets[47]. Future Plans and Developments - The group plans to establish a subsidiary in Zhuhai in the second half of 2023 to expand its presence in the Greater Bay Area market[56]. - The group is actively preparing several engineering projects, with some expected to complete approval in the second half of 2023, which is anticipated to boost performance[56]. - The group is focusing on opportunities in local government projects and plans to partner with Chinese construction companies to participate in government construction[56]. Corporate Governance - The company has complied with all applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2023[71]. - The audit committee has reviewed the accounting principles and policies adopted by the group for the six months ended June 30, 2023[73]. Accounting and Reporting - The interim financial data for the six months ended June 30, 2023, was prepared in accordance with Hong Kong Accounting Standard 34[106]. - The company adopted several new and revised Hong Kong Financial Reporting Standards during the reporting period, but these did not have a significant financial impact[109]. - The group has not reported any significant changes in its financial position or performance due to the adoption of new accounting standards[112].
黎氏企业(02266) - 2023 - 中期财报