Financial Performance - For the six months ended June 30, 2023, the group's revenue was HKD 70,069,000, a decrease of 30% compared to HKD 100,105,000 for the same period in 2022[4] - The gross profit for the six months ended June 30, 2023, was HKD 8,029,000, compared to HKD 2,230,000 in the same period of 2022, indicating a significant improvement[4] - The operating profit for the six months ended June 30, 2023, was a loss of HKD 200,000, an improvement from a loss of HKD 1,806,000 in the same period of 2022[4] - The net loss for the six months ended June 30, 2023, was HKD 1,311,000, compared to a loss of HKD 1,865,000 for the same period in 2022, showing a reduced loss[4] - The company reported a total comprehensive loss of HKD 1,367,000 for the six months ended June 30, 2023, compared to a loss of HKD 1,866,000 for the same period in 2022[7] - For the six months ended June 30, 2023, the loss attributable to owners was HKD 1,311,000, an improvement from a loss of HKD 1,865,000 in the prior year[23] - The company reported a profit attributable to owners of HKD 414,000 for the three months ended June 30, 2023, compared to a loss of HKD 434,000 in the same period of 2022, marking a significant turnaround[23] - The basic earnings per share for the three months ended June 30, 2023, was HKD 0.26, compared to a loss of HKD 0.27 in the same period of 2022[23] Revenue Breakdown - Revenue from Hong Kong for the six months ended June 30, 2023, was HKD 56,985,000, down 29.6% from HKD 81,147,000 in 2022[16] - Revenue from Macau for the six months ended June 30, 2023, was HKD 13,084,000, a decrease of 30.8% compared to HKD 18,958,000 in 2022[16] - Major customer A contributed HKD 54,445,000 for the six months ended June 30, 2023, an increase of 17.5% from HKD 46,354,000 in 2022[17] Cost Management - Material costs for the six months ended June 30, 2023, were HKD 24,649,000, down 31.1% from HKD 35,822,000 in 2022[18] - Subcontractor costs for the six months ended June 30, 2023, were HKD 29,664,000, a decrease of 44% compared to HKD 52,962,000 in 2022[18] - The employee costs for the group during the period amounted to approximately HKD 10.3 million, compared to HKD 12.6 million for the six months ended June 30, 2022[56] Assets and Liabilities - Total assets as of June 30, 2023, were HKD 174,258,000, down from HKD 186,244,000 as of December 31, 2022[5] - The total liabilities decreased to HKD 73,999,000 as of June 30, 2023, from HKD 84,618,000 as of December 31, 2022[5] - Cash and cash equivalents decreased to HKD 8,177,000 as of June 30, 2023, from HKD 12,047,000 as of December 31, 2022[5] - Trade receivables decreased to HKD 24,525,000 as of June 30, 2023, from HKD 35,059,000 as of December 31, 2022, reflecting a reduction of approximately 30%[24] - Total trade payables were HKD 23,952,000 as of June 30, 2023, compared to HKD 26,048,000 as of December 31, 2022, showing a decline of approximately 8%[29] - The company’s bank borrowings stood at HKD 28,273,000 as of June 30, 2023, slightly down from HKD 28,798,000 at the end of 2022[32] - The company’s interest-bearing borrowings decreased from approximately HKD 38.4 million as of December 31, 2022, to approximately HKD 38.2 million as of June 30, 2023[46] Corporate Governance - The board did not recommend any dividend for the relevant period, consistent with the previous year[21] - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM Listing Rules[65] - The board emphasizes the importance of good corporate governance for long-term success and stakeholder value creation[66] - The audit committee, composed of three independent non-executive directors, has reviewed the unaudited consolidated results, confirming compliance with applicable accounting standards[71] - The company has maintained compliance with corporate governance codes throughout the relevant period[68] - The chairman and CEO roles are held by the same individual, which the board believes is in the best interest of effective management[67] Risks and Challenges - Major risks identified include potential impacts from pandemics, reliance on successful bidding, and credit risks from major clients[72][73] - The company faced challenges due to skilled labor shortages and rising material and labor costs, impacting its performance[38] Future Outlook - The company plans to explore collaborations with new clients and seek new revenue sources while optimizing resource utilization and efficiency[39] - The company has not applied new accounting standards that have been issued but are not yet effective[13] - There were no significant investments or capital asset plans disclosed as of June 30, 2023[50] - The group had no capital commitments that had been contracted but not provided for as of June 30, 2023[49] - There were no significant acquisitions or disposals of subsidiaries or associated companies during the relevant period[51] - There were no significant events occurring after June 30, 2023, up to the date of this report[58]
荣丰集团亚洲(08526) - 2023 - 中期财报