Financial Performance - The Group's revenue for the six months ended September 30, 2022, was approximately HK$74.7 million, a decrease of approximately HK$20.5 million or 21.5% compared to HK$95.2 million for the same period in 2021[19]. - The gross profit for the same period was approximately HK$17.9 million, down from approximately HK$29.0 million in 2021[19]. - The net loss for the six months ended September 30, 2022, was approximately HK$0.8 million, compared to a net profit of approximately HK$7.5 million in 2021[20]. - Revenue for the six months ended September 30, 2022, was HK$74,692,000, a decrease of 21.6% compared to HK$95,206,000 in the same period of 2021[24]. - Gross profit for the same period was HK$17,852,000, down 38.5% from HK$29,014,000 year-over-year[24]. - Loss before tax was HK$717,000, compared to a profit of HK$8,962,000 in the prior year, indicating a significant decline in profitability[24]. - The total comprehensive loss for the period was HK$767,000, compared to a profit of HK$7,516,000 for the same period in 2021, indicating a significant decline in performance[33]. - The Group recorded a net loss attributable to the owners of the Company of approximately HK$0.8 million for the six months ended 30 September 2022, compared to a net profit of approximately HK$7.5 million in 2021[129]. Dividend and Shareholder Information - The Board does not recommend an interim dividend for the six months ended September 30, 2022, consistent with the previous year[20]. - The company paid dividends of HK$8,012,000 during the period, down from HK$10,909,000 in the previous year, a reduction of about 26%[33]. - The Group declared a final dividend of HK2.0 cents per ordinary share for the year ended 31 March 2022, down from HK2.73 cents in the previous year[72]. - As of September 30, 2022, Mr. Luk Kam Ming holds 157 million shares, representing approximately 38.77% of the Company's shareholding[180]. - Mr. Luk Kwai Lung and Mr. Luk Yin Cheung hold 138 million shares (34.08%) and 138.6 million shares (34.23%) respectively, both as interests in controlled corporations[180]. - The total number of issued shares was 404,960,000 as of September 30, 2022[184]. Operational Challenges - The Group's performance reflects the challenges faced in the market, impacting revenue and profitability[19]. - The financial highlights indicate a need for reassessment of operational strategies to address the decline in revenue[19]. - The impact of COVID-19 has significantly affected operational efficiencies and material delivery in the construction industry, particularly in the first half of 2022[97]. - The Group's operational strategy has shifted to focus on clearing outstanding contracts to prepare for economic recovery[97]. Financial Position and Assets - Total current assets decreased to HK$202,563,000 from HK$215,393,000, reflecting a reduction of approximately 5.9%[26]. - Trade receivables decreased to HK$38,549,000 from HK$50,974,000, a decline of 24.3%[26]. - Total current liabilities decreased to HK$36,853,000 from HK$43,668,000, a reduction of 15.6%[28]. - Net assets as of September 30, 2022, were HK$180,813,000, down from HK$189,427,000 as of March 31, 2022[28]. - Cash and cash equivalents at the end of the period decreased to HK$70,519,000 from HK$90,557,000, reflecting a decrease of approximately 22%[33]. - The Group's financial position remains stable, with no material impact from the adoption of revised HKFRSs[46]. Revenue Breakdown by Segment - Revenue from Transportation Mission Critical System Solutions was HK$16,585,000, slightly down from HK$16,847,000, representing a decrease of 1.6%[50]. - Revenue from Mobile Ticketing and Digital Payment Solutions and Services dropped significantly to HK$7,615,000 from HK$16,380,000, a decline of 53.6%[50]. - Digital Fabrication and Maintenance Services revenue decreased to HK$11,619,000 from HK$20,030,000, down by 42.1%[50]. - M&E Technology Solutions and Engineering Services revenue fell to HK$34,986,000 from HK$39,856,000, a decrease of 12.0%[50]. - Revenue from the M&E Technology Solutions and Engineering Services segment was approximately HK$35.0 million, down from approximately HK$39.9 million in 2021[112]. Cash Flow and Investments - For the six months ended September 30, 2022, the net cash from operating activities was HK$11,780,000, an increase from HK$4,356,000 in the same period of 2021, representing a growth of approximately 170%[33]. - The net cash flows used in investing activities amounted to HK$5,468,000, an improvement compared to HK$8,710,000 in the prior year[33]. - The Group maintained a healthy liquidity position throughout the reporting period, with no borrowing incurred, and closely monitored its liquidity structure to meet funding requirements[146]. Corporate Governance and Compliance - The financial report is prepared in compliance with the GEM Listing Rules, ensuring accuracy and completeness of the information provided[4]. - The Group's management is committed to transparency and accountability in financial reporting[4]. - The Company has complied with all applicable provisions of the Corporate Governance Code during the six months ended September 30, 2022[167]. - The Audit Committee reviewed the unaudited condensed consolidated results for the six months ended September 30, 2022, and confirmed compliance with applicable accounting standards[169]. Future Plans and Strategic Initiatives - The Group continues to focus on strategic initiatives to improve financial performance in the future[19]. - The Group plans to pursue more EV charging projects under the Home Subsidy Scheme, with an additional HK$1.5 billion allocated until 2028[119]. - The Group is expanding its role in the ePayment business and diversifying its customer base in the retail market[120]. - The application of robotic technology for transporting coins and banknotes is in the testing phase and expected to enter production in 2023[121].
高萌科技(08065) - 2023 - 中期财报