Financial Performance - The Group's revenue for the Reporting Period was approximately HK$325.3 million, a decrease of approximately HK$4.9 million, or 1.5%, compared to the corresponding period in 2021[18]. - The Group's gross profit increased by approximately 225% to approximately HK$15.6 million, compared to the corresponding period in 2021[18]. - The net profit for the Group amounted to approximately HK$5.0 million, representing an increase of approximately HK$8.7 million, or 235.1%, compared to the corresponding period in 2021[18]. - Revenue for the six months ended September 30, 2022, was HK$325.27 million, a slight decrease from HK$330.16 million in the same period of 2021, reflecting a decline of approximately 1.7%[81]. - Gross profit for the same period was HK$15.60 million, significantly up from HK$4.78 million in 2021, indicating an increase of approximately 227%[81]. - Profit before income tax for the period was HK$6.22 million, compared to a loss of HK$3.35 million in the previous year, marking a turnaround in profitability[81]. - The company reported a profit attributable to equity holders of HK$4.98 million, compared to a loss of HK$3.68 million in the prior year[81]. - Earnings per share attributable to equity holders was HK$0.42, a recovery from a loss of HK$0.31 per share in the previous year[81]. - For the six months ended September 30, 2022, the company reported a total comprehensive income of HK$4,983,000, compared to a loss of HK$3,677,000 for the same period in 2021[90]. Project and Market Overview - The Group was awarded 8 projects with an original contract sum of approximately HK$246.5 million during the Reporting Period[18]. - The construction industry in Hong Kong is facing challenges due to the lingering COVID-19 pandemic and the war in Ukraine, impacting the economic outlook[19]. - Continuous interest rate hikes in Hong Kong have led to a low point in the real estate price index, affecting investment sentiment[20]. - The government has included large-scale infrastructure plans in its Policy Address, which may lead to an increase in sizable construction projects[20]. - The Group plans to explore business opportunities and expand its geographical coverage beyond the Hong Kong market for future development[21]. Expenses and Costs - Administrative expenses rose by approximately HK$0.9 million or 9.8% to approximately HK$10.1 million, primarily due to increased staff costs[29]. - Finance costs decreased by approximately HK$219,000 or 73.5% to approximately HK$79,000, attributed to a reduction in short-term borrowings[30]. - Other gains decreased by approximately HK$0.4 million or 26.7% to approximately HK$1.1 million, mainly due to exchange losses from Renminbi-denominated deposits[28]. - Total staff costs for the reporting period were approximately HK$48.7 million, down from approximately HK$56.2 million for the corresponding period in 2021, representing a decrease of about 14%[72][76]. - Depreciation expenses increased to HK$10,691,000 in 2022 from HK$9,207,000 in 2021, reflecting a rise of about 16.1%[123]. - Subcontracting charges included in direct costs rose to HK$94,087,000 in 2022, up from HK$81,793,000 in 2021, indicating an increase of approximately 15%[121]. Cash and Financial Position - The Group's total cash, bank balances, and pledged bank deposits increased to approximately HK$129.4 million as of 30 September 2022, up from approximately HK$120.4 million[41]. - As of 30 September 2022, the company had short-term bank borrowings of approximately HK$4.1 million, down from approximately HK$6.6 million[42]. - The company's short-term bank borrowings were approximately HK$4.1 million as of September 30, 2022, down from HK$6.6 million as of March 31, 2022[47]. - The asset-to-liability ratio was approximately 1.6% as of September 30, 2022, compared to 2.8% as of March 31, 2022[47]. - The company’s cash and cash equivalents at the end of the period were HK$124,223,000, up from HK$73,980,000 at the end of the previous year[94]. - The company recorded a net increase in cash and cash equivalents of HK$25,017,000, compared to HK$34,941,000 in the prior year[94]. - Cash generated from operations for the six months ended 30 September 2022 was HK$37,953,000, a decrease from HK$40,466,000 in 2021[94]. Taxation and Dividends - The increase in income tax expense was approximately HK$0.9 million or 300%, rising from approximately HK$0.3 million to approximately HK$1.2 million due to increased deferred tax expenses[38]. - The total income tax expense for the six months ended September 30, 2022, was HK$1,240,000, compared to HK$331,000 in 2021, marking an increase of about 274%[126]. - The company did not declare any interim dividend for the reporting period, consistent with the previous year[63]. - No interim dividend was declared for the six months ended September 30, 2022, consistent with the same period in 2021[129]. Employee and Management Information - As of September 30, 2022, the company employed 256 full-time employees, an increase from 205 employees as of March 31, 2022[72][76]. - The salaries, fees, and allowances for key management personnel for the six months ended 30 September 2022 were HK$1,879,000, an increase from HK$1,600,000 in 2021, reflecting an increase of approximately 17.4%[198]. - The total remuneration for key management personnel, including discretionary bonuses and retirement benefit scheme contributions, was HK$1,915,000 for the six months ended 30 September 2022, compared to HK$1,655,000 in 2021, indicating an increase of approximately 15.7%[198]. Assets and Liabilities - Total assets as of September 30, 2022, were HK$281.66 million, an increase from HK$247.60 million as of March 31, 2022, representing a growth of approximately 13.8%[84]. - Net assets stood at HK$260.34 million, up from HK$255.36 million as of March 31, 2022, reflecting a modest increase of about 1.2%[87]. - The Group's deposits, prepayments, and other receivables total HK$49,816,000 as of September 30, 2022, compared to HK$39,488,000 as of March 31, 2022[151]. - The ageing analysis of trade receivables shows HK$41,092,000 within 0-30 days and HK$8,724,000 within 31-60 days as of September 30, 2022[160]. - The Group's borrowings and bank facilities are secured by investment property with a carrying amount of HK$4,660,000 as of September 30, 2022[147]. Other Information - The Group operates solely in one segment, focusing on foundation works in Hong Kong[54]. - The Group's financial position and results were not materially impacted by the adoption of amended HKFRSs effective from April 1, 2022[99]. - There were no significant events affecting the company after the reporting period up to the date of the report[74][78].
龙昇集团控股(06829) - 2023 - 中期财报