Financial Performance - The group reported a revenue of approximately HKD 266.9 million from foundation and site preparation works, an increase of about HKD 62.8 million or 30.8% compared to HKD 204.1 million for the same period last year[11]. - Revenue for the six months ended September 30, 2022, was approximately HKD 273.0 million, compared to approximately HKD 209.4 million for the same period in 2021, representing a growth of approximately 30.4%[43]. - Total revenue for the six months ended September 30, 2022, was HKD 273,012,000, a 30.4% increase from HKD 209,386,000 in the same period of 2021[58]. - The company's profit attributable to owners for the reporting period was approximately HKD 8.9 million, an improvement from approximately HKD 1.3 million for the six months ended September 30, 2021, mainly due to improved gross profit and a HKD 6.0 million employment subsidy received[20]. - The company reported a net profit of HKD 8,907,000 for the six months ended September 30, 2022, compared to a net profit of HKD 1,325,000 for the same period in 2021, representing a significant increase[47]. - The company's basic and diluted earnings per share for the reporting period were 1.0 cents, compared to 0.1 cents for the same period in 2021[43]. Profitability and Expenses - The group's gross profit reached approximately HKD 19.9 million, an increase of about HKD 7.4 million or 59.2% compared to HKD 12.5 million for the same period last year, resulting in a gross profit margin of approximately 7.3%[12]. - Other income for the group amounted to approximately HKD 6.3 million, a significant increase of about HKD 5.2 million or 472.7% compared to HKD 1.1 million for the same period last year, primarily due to government subsidies[13]. - Administrative expenses increased to approximately HKD 16.5 million, up about HKD 4.8 million or 41.0% from HKD 11.7 million for the same period last year, mainly due to increased salary costs and provisions for losses[15]. - Financial costs rose to approximately HKD 0.8 million, an increase of about HKD 0.6 million or 300.0% compared to HKD 0.2 million for the same period last year, attributed to higher lease liabilities[18]. Assets and Liabilities - Total assets as of September 30, 2022, were approximately HKD 256.6 million, up from approximately HKD 215.0 million as of March 31, 2022, with current assets increasing to approximately HKD 197.8 million from approximately HKD 161.9 million[22]. - Total liabilities as of September 30, 2022, were approximately HKD 130.4 million, compared to approximately HKD 97.7 million as of March 31, 2022, with current liabilities rising to approximately HKD 114.0 million from approximately HKD 89.0 million[22]. - The company's equity attributable to owners was approximately HKD 126.2 million as of September 30, 2022, an increase from approximately HKD 117.3 million as of March 31, 2022[23]. Cash Flow and Investments - Operating cash flow for the six months ended September 30, 2022, was HKD 26,255,000, up from HKD 1,103,000 in the previous year, indicating improved operational efficiency[49]. - The company incurred a net cash outflow from investing activities of HKD 8,829,000, compared to HKD 4,968,000 in the prior year, indicating increased investment in assets[49]. - The company’s financing activities generated a net cash inflow of HKD 5,155,000, a turnaround from a net cash outflow of HKD 1,301,000 in the previous year[49]. - Cash and cash equivalents increased to HKD 47,944,000 as of September 30, 2022, compared to HKD 33,590,000 at the end of the previous period[49]. Projects and Contracts - The group secured 19 new contracts during the reporting period, with a total original contract value of approximately HKD 384.4 million, and completed 11 projects with an original contract value of approximately HKD 175.0 million[8]. - The group had a total of 29 projects on hand as of September 30, 2022, including ongoing and awarded but not yet commenced projects[8]. - The total amount of unbilled revenue related to performance obligations as of September 30, 2022, was approximately HKD 479.9 million, compared to HKD 367.9 million as of September 30, 2021[8]. Future Outlook and Strategy - The group aims to expand its scope of work in the construction industry and aspires to become a general contractor for foundation works in the future[6]. - The group will continue to monitor service costs and market trends closely to enhance its competitiveness in the market[6]. - The company plans to continue focusing on its core business of foundation and site preparation services, with no significant changes in operational strategy indicated[59]. Shareholder Information and Governance - As of September 30, 2022, Mr. Li Zhuojin holds 484,998,000 shares, representing 51.94% of the issued shares through a controlled corporation[109]. - Major shareholders include Caihui Global Limited and De Yi Global Limited, holding 51.94% and 20.35% of shares respectively[113]. - The company has adopted the corporate governance code as per the listing rules and has complied with it during the reporting period, except for the separation of roles between the Chairman and CEO[106]. - The audit committee was established on September 21, 2017, to review financial information and monitor the financial reporting system[122]. - The audit committee consists of three independent non-executive directors, including Mr. Chan Chung-kik, Mr. Wong Chik-kong, and Mr. Lee Kwok-lun[123].
荣智控股(06080) - 2023 - 中期财报