Financial Performance - The company's revenue increased by approximately HKD 20.8 million or 13.1% to about HKD 179.2 million compared to the previous period's revenue of approximately HKD 158.4 million[14]. - Gross profit rose by approximately HKD 4.3 million or 10.4% to about HKD 45.5 million, with a gross margin of approximately 25.4%, slightly down from 26.0% in the previous period[15]. - The company's net profit for the period was approximately HKD 20.6 million, an increase of about HKD 0.7 million or 4% compared to the previous period's net profit of approximately HKD 19.9 million[17]. - Profit before tax increased to HKD 24,599 thousand, compared to HKD 23,440 thousand in the previous year, representing a growth of 4.9%[52]. - Total comprehensive income for the period amounted to HKD 20,654 thousand, compared to HKD 19,858 thousand in the prior year, showing an increase of 4.0%[52]. - For the six months ended June 30, 2022, the company's profit attributable to owners was HKD 20,621,000, compared to HKD 19,859,000 for the same period in 2021, representing an increase of approximately 3.83%[90]. Expenses and Costs - Administrative and other operating expenses increased by approximately HKD 4.1 million or 23.4% to about HKD 21.6 million, primarily due to increased employee benefits expenses[16]. - The cost of inventory recognized as an expense was HKD 57,125,000 for the six months ended June 30, 2022, up from HKD 50,667,000 in 2021, indicating a year-over-year increase of about 12.88%[82]. - The interim tax expense for the six months ended June 30, 2022, was HKD 3,978,000, compared to HKD 3,581,000 for the same period in 2021, representing an increase of approximately 11.06%[84]. - The total compensation for key management personnel for the six months ended June 30, 2022, was HKD 5,996,000, a decrease from HKD 6,620,000 in 2021[121]. Cash Flow and Financial Position - The company's cash and cash equivalents increased by approximately HKD 65.6 million to about HKD 153.9 million as of June 30, 2022, compared to approximately HKD 88.3 million as of December 31, 2021[22]. - Bank borrowings decreased to approximately HKD 0.5 million from about HKD 15.9 million as of December 31, 2021, due to cash flow from operating activities used to repay borrowings[21]. - The asset-to-liability ratio was approximately 0.2% as of June 30, 2022, down from 6.2% as of December 31, 2021, mainly due to reduced bank borrowings and increased total equity[22]. - Current assets decreased to HKD 389,110 thousand from HKD 390,717 thousand, indicating a slight reduction in liquidity[54]. - Total assets less current liabilities increased to HKD 274,224 thousand from HKD 265,637 thousand, showing a strengthening of the company's financial position[54]. Contracts and Revenue Sources - The company held contracts with an estimated remaining value of HKD 686.7 million as of June 30, 2022, with several new contracts successfully obtained during the period[11]. - The company was awarded a new external wall contract valued at approximately HKD 37.9 million after the reporting period[12]. - Major clients contributed significantly to revenue, with Client I generating HKD 81,278,000 and Client II contributing HKD 72,807,000 in the first half of 2022, compared to HKD 35,128,000 and HKD 112,048,000 respectively in the same period of 2021[76]. - The company reported revenue of HKD 165,130,000 from design and construction projects related to facade and curtain wall engineering for the six months ended June 30, 2022, an increase from HKD 140,947,000 in the same period of 2021, representing a growth of approximately 17.2%[79]. - Maintenance and repair services generated revenue of HKD 170,745,000 for the six months ended June 30, 2022, compared to HKD 146,456,000 in the prior year, reflecting an increase of about 16.6%[79]. Governance and Compliance - The board recommended not to declare an interim dividend for the period, considering the overall business performance and financial condition[47]. - The company maintained compliance with corporate governance codes, except for the combined roles of the Chairman and CEO held by Mr. Li[44]. - The company has adopted new and revised Hong Kong Financial Reporting Standards effective from January 1, 2022, but these changes did not have a significant impact on the group's performance and financial position[70]. - The company's financial statements are prepared in accordance with Hong Kong Accounting Standards and have not been audited or reviewed by external auditors[67]. Assets and Liabilities - The total contract assets as of June 30, 2022, amounted to HKD 125,895,000, compared to HKD 96,247,000 as of December 31, 2021, reflecting a significant increase of approximately 30.93%[93]. - The company's trade receivables, net of loss provisions, were HKD 77,328,000 as of June 30, 2022, compared to HKD 172,966,000 in the previous year, showing a decrease of about 55.32%[102]. - The total liabilities related to contract liabilities were HKD 68,755,000 as of June 30, 2022, compared to HKD 56,825,000 as of December 31, 2021, indicating an increase of approximately 20.93%[96]. - Trade payables as of June 30, 2022, totaled HKD 19,115,000, a decrease of 53% from HKD 40,718,000 in 2021[107]. - Warranty payables as of June 30, 2022, were HKD 8,715,000, down from HKD 9,218,000 in 2021[111]. Employee Information - As of June 30, 2022, the company had 109 employees, with total employee benefits expenditure amounting to approximately HKD 34.0 million, an increase from HKD 30.8 million in the previous period[23]. - The company granted 3,000,000 share options under its share option scheme, with no options exercised or cancelled up to the report date[35].
信越控股(06038) - 2022 - 中期财报