Financial Performance - Revenue for the six months ended June 30, 2022, was approximately HK$46.8 million, a decrease of about 10.0% compared to HK$52.0 million for the same period in 2021[11]. - Net loss for the period was approximately HK$4.2 million, a reduction of HK$0.5 million from a net loss of approximately HK$4.7 million in the corresponding period of the previous year[11]. - Basic and diluted loss per share was approximately HK0.39 cents, improved from HK0.54 cents for the six months ended June 30, 2021[11]. - Gross profit for the six months ended June 30, 2022, was approximately HK$13.2 million, down from HK$15.4 million in the same period of 2021[14]. - Operating loss for the six months was approximately HK$1.57 million, compared to an operating loss of HK$1.80 million for the same period last year[14]. - Profit before income tax for the period was a loss of approximately HK$4.65 million, slightly improved from a loss of HK$4.70 million in the previous year[14]. - The total comprehensive profit for the period was HK$208,000, a decrease from HK$1,111,000 in the previous year, indicating a decline of 81.3%[17]. - The Company reported a total comprehensive loss attributable to owners of the Company of HK$624,000 for the three months ended June 30, 2022, compared to a profit of HK$756,000 in the same period of 2021[17]. - Revenue for the six months ended June 30, 2022, was HK$46,815,000, a decrease of 10.4% from HK$52,031,000 in the same period of 2021[46]. - Revenue from concrete demolition services increased to HK$34,158,000, up 17.5% from HK$29,052,000 in 2021[46]. - Revenue from prefabricated construction components decreased to HK$12,657,000, down 44.8% from HK$22,979,000 in 2021[46]. Dividends and Shareholder Returns - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2022, consistent with the previous year[11]. - No dividend was recommended for the six months ended June 30, 2022, consistent with the same period in 2021 where no dividend was declared[68]. - The Board does not recommend payment of an interim dividend to shareholders for the six months ended June 30, 2022 (2021: nil)[154]. Assets and Liabilities - Current assets increased to HK$95,889,000 as of June 30, 2022, up from HK$90,813,000 at the end of 2021, reflecting a growth of 5.8%[19]. - Current liabilities rose to HK$113,483,000, compared to HK$86,220,000 at the end of 2021, marking an increase of 31.6%[19]. - The net current liabilities as of June 30, 2022, were HK$17,594,000, a significant decline from net current assets of HK$4,593,000 at the end of 2021[19]. - The total equity attributable to owners of the Company decreased to HK$4,244,000 from HK$9,194,000 at the end of 2021, a drop of 53.8%[19]. - The borrowings increased to HK$67,250,000 as of June 30, 2022, from HK$45,800,000 at the end of 2021, representing a rise of 46.8%[19]. - The Group reported net current liabilities of HK$17.6 million as of June 30, 2022, compared to net current assets of HK$4.6 million as of December 31, 2021[31]. - Total borrowings as of June 30, 2022, amounted to HK$67,250,000, an increase from HK$64,250,000 as of December 31, 2021, reflecting a rise of 4.6%[86]. - The annual interest rate on borrowings ranges from 6.75% to 12.0%[131]. Cash Flow - For the six months ended June 30, 2022, the net cash outflow from operating activities was HK$898,000, a significant decrease from the net inflow of HK$8,230,000 in the same period of 2021[24]. - The cash used in operations was HK$3,598,000 for the first half of 2022, compared to cash generated from operations of HK$6,549,000 in the same period of 2021[24]. - The net cash outflow from investing activities was HK$954,000 for the six months ended June 30, 2022, compared to HK$319,000 in the same period of 2021[24]. - The Group's total cash and cash equivalents decreased to HK$34.1 million as of June 30, 2022, down from HK$42.2 million at the end of June 2021[24]. - The Group's cash and cash equivalents at the beginning of the year were HK$37.1 million, decreasing to HK$34.1 million by June 30, 2022[24]. Operational Highlights - The Group operates solely in the construction business, focusing on concrete demolition services and prefabricated construction[47]. - The Group established production facilities in Huizhou, PRC, focusing on precast concrete components and glass fiber reinforced cement components, aiming to service the Greater Bay area of China[102]. - The Company anticipates ongoing disruptions due to the Covid-19 pandemic, affecting business operations and supply chains throughout 2022[103]. - The Group is seeking opportunities to expand into overseas markets, particularly along the Belt and Road countries[104]. Employee and Cost Management - Staff costs, including directors' remuneration, increased to HK$16,303,000 for the six months ended June 30, 2022, compared to HK$16,070,000 in 2021, reflecting a rise of 1.4%[63]. - The total staff costs for the Reporting Period amounted to approximately HK$16.3 million[127]. - The group had 110 employees as of June 30, 2022[132]. - The Group has implemented measures to tighten cost control over general expenses to achieve positive cash flow operations[34]. Trade Receivables and Payables - Trade receivables increased to HK$55,210,000 as of June 30, 2022, up from HK$46,088,000 at the end of 2021, representing a growth of 19.1%[76]. - The net trade receivables after impairment allowances were HK$52,670,000, compared to HK$44,086,000 in 2021, indicating a 19.5% increase[76]. - The average credit period granted to customers is 45 days, with trade receivables past due showing a significant increase in the 0-30 days category to HK$27,033,000 from HK$8,120,000 in 2021[79]. - As of June 30, 2022, trade payables increased to HK$20,841,000 from HK$12,654,000 as of December 31, 2021, representing a growth of 64.5%[83]. Impairment and Reversals - The impairment loss on trade receivables increased to HK$566,000 in 2022 from HK$284,000 in 2021, indicating a rise of 99%[63]. - The Group recorded a reversal of impairment loss on other receivables amounting to HK$1,671,000 in 2022, compared to no such reversal in 2021[63]. Governance and Compliance - The company complied with the applicable code provisions of the Corporate Governance Code during the reporting period, with some exceptions noted[147]. - The Audit Committee has reviewed the unaudited consolidated financial statements of the Group for the Reporting Period[162].
朝威控股(08059) - 2022 - 中期财报