Financial Performance - The group's revenue for the six months ended December 31, 2022, was HKD 21,511,000, a decrease of 25.7% compared to HKD 28,851,000 in the same period of 2021[3] - The group reported a loss attributable to owners of the company of HKD 3,001,000 for the six months ended December 31, 2022, compared to a loss of HKD 6,161,000 in the same period of 2021, representing a 51.4% improvement[3] - The group reported a pre-tax loss of HKD 21,629,000 for the six months ended December 31, 2022, compared to HKD 27,425,000 for the same period in 2021, reflecting a decrease of 21.2%[20] - Total revenue for the six months ended December 31, 2022, was approximately HKD 21.5 million, down from HKD 28.9 million in the same period of 2021, primarily due to a decrease in the number of construction projects undertaken[41] - For the six months ended December 31, 2022, the group recorded a gross loss of approximately HKD 0.12 million, resulting in a gross loss margin of about 0.5%, compared to a gross profit of approximately HKD 1.4 million and a gross profit margin of 4.9% for the same period in 2021[42] Cash Flow and Financial Position - The group's cash and cash equivalents increased to HKD 43,040,000 as of December 31, 2022, from HKD 30,710,000 at the end of June 2022, marking a 40% increase[4] - The net cash generated from operating activities for the six months ended December 31, 2022, was HKD 12,731,000, compared to a net cash used of HKD 20,955,000 in the same period of 2021[7] - As of December 31, 2022, the group maintained a strong financial position with cash and bank balances of approximately HKD 43.0 million, up from HKD 30.7 million as of June 30, 2022, and a current ratio of approximately 9.8 times[47] - The debt-to-equity ratio was approximately 1.2% as of December 31, 2022, down from 1.8% as of June 30, 2022[48] Expenses and Cost Management - The group’s administrative expenses for the six months ended December 31, 2022, were HKD 3,811,000, down 49.8% from HKD 7,581,000 in the same period of 2021[3] - Employee benefit expenses for the six months ended December 31, 2022, were HKD 4,366,000, down 41.4% from HKD 7,502,000 in the previous year[20] - The company did not incur any one-time share-based payment expenses for the six months ended December 31, 2022, compared to HKD 3.1 million in the same period of 2021[40] - The group’s financing costs for the six months ended December 31, 2022, were HKD 20,000, compared to HKD 17,000 in the same period of 2021, reflecting an increase of 17.6%[3] Assets and Liabilities - The group's total assets less current liabilities decreased to HKD 56,789,000 as of December 31, 2022, from HKD 60,072,000 as of June 30, 2022, reflecting a decline of 5.4%[4] - The group’s non-current assets decreased to HKD 556,000 as of December 31, 2022, from HKD 718,000 as of June 30, 2022, indicating a decline of 22.5%[4] - The group’s total equity as of December 31, 2022, was HKD 56,747,000, down from HKD 59,748,000 as of June 30, 2022, representing a decrease of 5.0%[5] - Trade receivables as of December 31, 2022, were HKD 10.06 million, down from HKD 18.75 million as of June 30, 2022[28] - The company had contract assets of HKD 8.14 million as of December 31, 2022, down from HKD 17.43 million as of June 30, 2022[30] Governance and Compliance - The board believes that the dual role of the chairman and CEO enhances management efficiency and business development[63] - The company has complied with all applicable corporate governance code provisions, except for the dual role of the chairman and CEO[64] - The audit committee consists of three independent non-executive directors, chaired by Mr. Yu Da Zhi, ensuring compliance with GEM listing rules[72] - The unaudited consolidated interim financial statements for the six months ended December 31, 2022, have been reviewed by the audit committee and are prepared in accordance with applicable accounting standards[72] Future Outlook and Strategy - The group plans to focus on expanding market share in foundation and site preparation projects, superstructure construction projects, and renovation works, while adhering to prudent financial principles to ensure sustainable growth[46] - The board will continue to consider other investment opportunities to diversify the group's revenue sources while being mindful of associated risks[46] Shareholder Information - As of December 31, 2022, Zhao Xue Mei holds 8,999,000 shares, representing 7.49% of the company's issued share capital[60] - The company did not recommend any dividend payment for the six months ended December 31, 2022, consistent with the previous year[24] - The company did not recommend an interim dividend for the six months ended December 31, 2022, consistent with the previous year[66] Accounting and Standards - The group has adopted new accounting standards effective from July 1, 2022, but these have not had a significant impact on its financial position and performance[12] - The group is currently assessing the impact of new accounting standards that have been issued but are not yet effective[12] - The fair value of share options granted on October 8, 2021, was approximately HKD 3,115,000, which has been recognized as an expense in the profit and loss statement for the six months ended December 31, 2021[70] - The exercise price of the share options granted is HKD 0.56 per share, with a total of 10,000,000 options granted[69] - The expected volatility for the share options is 185.5%, based on historical volatility[70] Risk Management - The group does not face significant foreign exchange risk as most of its revenue-generating activities are conducted in Hong Kong and are denominated in HKD[51] - The group’s financial risk management policies have remained unchanged since June 30, 2022[14]
WT集团(08422) - 2023 - 中期财报