Financial Performance - For the six months ended June 30, 2022, the group's revenue increased by approximately 12.8% to about HKD 35.5 million, compared to HKD 31.4 million for the same period last year[5]. - The gross profit for the period decreased to approximately HKD 7.1 million, down from HKD 8.3 million in the previous year[5]. - The loss attributable to owners of the company was approximately HKD 2.2 million, compared to a profit of HKD 1.3 million in the same period last year[5]. - The company reported a comprehensive loss attributable to owners of approximately HKD 2.3 million for the period, compared to a comprehensive income of HKD 1.3 million in the previous year[13]. - The company reported a net loss of HKD 2,235,000 for the six months ended June 30, 2022, compared to a profit of HKD 15,621,000 for the same period in 2021[118]. - Total comprehensive income for the period was HKD (2,336,000), which includes a foreign exchange loss of HKD (141,000)[118]. - The basic loss per share for the six months ended June 30, 2022, was HKD (0.23), compared to HKD 0.13 for the same period in 2021[140]. Dividends and Equity - The board declared an interim dividend of HKD 0.05 per share, compared to no dividend in the same period last year[5]. - The company’s total equity as of June 30, 2022, was HKD 121,393,000, down from HKD 129,520,000 as of June 30, 2021[118]. - The group declared an interim dividend of HKD 0.05 per share for the current period, compared to no dividend in the same period last year[181]. - The total equity attributable to owners of the company was approximately HKD 121.4 million as of June 30, 2022, down from HKD 129.5 million as of December 31, 2021[184]. Assets and Liabilities - Total assets as of June 30, 2022, amounted to HKD 128.2 million, a decrease from HKD 150.3 million as of December 31, 2021[17]. - Current assets decreased to HKD 123.1 million from HKD 145.5 million, primarily due to a reduction in trade and other receivables[17]. - The company's cash and cash equivalents were HKD 67.5 million, down from HKD 80.7 million at the end of the previous year[17]. - Non-current assets increased slightly to HKD 5.1 million from HKD 4.8 million, driven by an increase in right-of-use assets[17]. - The total liabilities decreased to HKD 6.8 million from HKD 20.8 million, reflecting a reduction in current liabilities[17]. - The group’s net current assets were approximately HKD 117.0 million as of June 30, 2022, compared to HKD 125.0 million as of December 31, 2021[184]. - The current ratio as of June 30, 2022, was approximately 20.0 times, significantly up from 7.1 times as of December 31, 2021[184]. Cash Flow - Cash flow from operating activities was negative at HKD (6,510,000) for the six months ended June 30, 2022, compared to positive cash flow of HKD 15,621,000 in the previous year[121]. - The company incurred financing cash outflows of HKD (6,163,000) during the reporting period, significantly higher than HKD (853,000) in the prior year[121]. - Cash and cash equivalents decreased by HKD (13,037,000) during the six months ended June 30, 2022, compared to an increase of HKD 14,794,000 in the same period of 2021[121]. - The company paid dividends amounting to HKD (3,000,000) during the reporting period[121]. - The company purchased shares under the share award scheme for HKD (2,791,000), compared to HKD (481,000) in the previous year[121]. Revenue Sources - For the six months ended June 30, 2022, external customer revenue from Hong Kong was HKD 35,461,000, an increase of 13.9% compared to HKD 31,278,000 for the same period in 2021[130]. - The revenue from design and renovation projects rose from approximately HKD 27.0 million to about HKD 34.2 million, driven mainly by increased revenue from elderly care homes and medical center projects[173]. Expenses - Total sales and administrative expenses for the six months ended June 30, 2022, were HKD 38,674,000, an increase of 31.6% from HKD 29,389,000 for the same period in 2021[133]. - Employee benefit costs, including directors' remuneration, totaled HKD 7,366,000 for the six months ended June 30, 2022, compared to HKD 3,671,000 for the same period in 2021, reflecting a significant increase of 100.5%[133]. - General and administrative expenses increased to approximately HKD 10.0 million from about HKD 6.2 million in the previous year, primarily due to an increase in discretionary bonuses for employees and directors[178]. - The group incurred material and subcontracting costs of HKD 27,281,000 for the six months ended June 30, 2022, compared to HKD 21,137,000 for the same period in 2021, representing a 29% increase[133]. Trade Receivables and Payables - Trade receivables as of June 30, 2022, were HKD 10,495,000, down from HKD 15,026,000 as of December 31, 2021, representing a decrease of 30.5%[146]. - After deducting the provision for losses, trade receivables amounted to HKD 8,241,000, compared to HKD 12,220,000 in the previous year, a decline of 32.5%[146]. - Trade payables increased to HKD 5,324,000 as of June 30, 2022, from HKD 3,141,000 as of December 31, 2021, an increase of 69.7%[149]. - Other payables and accrued expenses decreased to HKD 377,000 from HKD 3,962,000, a significant drop of 90.5%[149]. Market Outlook and Strategy - The group remains optimistic about the interior design and renovation market, particularly in commercial spaces and medical centers, due to increasing public awareness of health issues and an aging population in Hong Kong[171]. - The group plans to continue investing resources to undertake larger projects and explore new business opportunities to maximize long-term returns for shareholders[171]. - The group will closely monitor the potential impact of the ongoing COVID-19 pandemic on its business and operations[170]. Miscellaneous - The group received government subsidies amounting to HKD 192,000 during the six months ended June 30, 2022, aimed at retaining employees[132]. - The group has not applied any new accounting standards or interpretations that have not yet come into effect during the current accounting period[128]. - The group has no significant contingent liabilities as of June 30, 2022, consistent with the previous year[159]. - The group has no significant capital commitments as of June 30, 2022[188]. - The group has not entered into any derivative agreements or used financial instruments to hedge foreign exchange risks during the period[187]. - Liu Jingwei holds a 75% equity interest in Sino Emperor Group Limited, amounting to 750,000,000 shares[198]. - The total issued shares of the company as of June 30, 2022, is 1,000,000,000[199].
K W NELSON GP(08411) - 2022 - 中期财报