Financial Performance - Revenue for the six months ended September 30, 2022, was HK$169,577,000, a slight increase of 1.2% compared to HK$166,537,000 in the same period of 2021[11]. - Gross profit decreased to HK$6,962,000, down 23.9% from HK$9,139,000 year-on-year[11]. - Profit for the period was HK$1,247,000, representing a decline of 38.1% compared to HK$2,012,000 in the previous year[11]. - Total comprehensive income for the period was HK$1,325,000, down 35.2% from HK$2,047,000 in the same period of 2021[11]. - Basic and diluted earnings per share were both HK$0.16, down from HK$0.25 in the previous year[11]. - Profit before taxation for the six months ended 30 September 2022 was HK$1,391,000, down 42.6% from HK$2,425,000 in the previous year[21]. - Total comprehensive income for the six months ended 30 September 2022 was HK$1,325,000, a decrease of 35.3% compared to HK$2,048,000 for the same period in 2021[17]. - Profit for the period decreased from approximately HK$2.0 million for the six months ended 30 September 2021 to approximately HK$1.2 million for the six months ended 30 September 2022, a decline of 40%[150]. Revenue Breakdown - Revenue from construction services for residential properties was HK$96,510,000, up 8.5% from HK$88,897,000 in 2021[46]. - Revenue from construction services for commercial properties decreased by 6% to HK$73,067,000 from HK$77,640,000 in 2021[46]. - Major customers contributing 10% or more of total revenue included Customer A with HK$67,307,000 and Customer C with HK$39,806,000[54]. - Total revenue increased by approximately HK$3.1 million or 1.9% from approximately HK$166.5 million for the six months ended 30 September 2021 to approximately HK$169.6 million for the six months ended 30 September 2022[138]. Assets and Liabilities - Trade receivables increased to HK$39,686,000 from HK$29,462,000, reflecting a growth of 34.7%[12]. - Contract assets rose to HK$184,519,000, up 24.2% from HK$148,580,000 as of March 31, 2022[12]. - Current liabilities increased to HK$238,146,000 from HK$184,741,000, indicating a rise of 28.9%[12]. - Net assets as of September 30, 2022, were HK$70,350,000, a slight increase from HK$69,025,000 as of March 31, 2022[15]. - The Group's total direct costs and administrative expenses amounted to HK$23,608,000 and HK$2,785,000 respectively, compared to HK$20,418,000 and HK$2,954,000 in the previous year[72]. Cash Flow and Financing - Cash used in operating activities amounted to HK$27,790,000, slightly higher than HK$27,645,000 used in the same period last year[21]. - Net cash generated from financing activities was HK$28,208,000, compared to HK$29,704,000 in the previous year, reflecting a decrease of 5.0%[21]. - Cash and cash equivalents at the end of the period increased to HK$12,883,000 from HK$12,681,000, representing a growth of 1.6%[21]. - New bank borrowings raised during the period were HK$222,498,000, slightly lower than HK$225,495,000 in the previous year[21]. - The group’s bank borrowings totaled HK$149,345,000 as of September 30, 2022, up from HK$117,720,000 as of March 31, 2022, representing a 26.9% increase[101]. Expenses - The company reported an increase in administrative expenses to HK$4,667,000 from HK$4,861,000, a decrease of 4%[11]. - Total staff costs for the period amounted to HK$26,393,000, representing an increase of 13% from HK$23,372,000 in the previous year[70]. - Finance costs rose to HK$2,549,000, compared to HK$1,927,000 in the same period last year, primarily due to increased interest on bank borrowings[59]. - Administrative expenses decreased by approximately HK$0.2 million from approximately HK$4.9 million to approximately HK$4.7 million, primarily due to a reduction in staff costs[147]. Market Outlook - The Group remains optimistic about its core business despite the economic slowdown and aims to expand its customer base and achieve sustainable growth[132]. - The Group expects to recognize revenue from unsatisfied contracts for construction services between 2023 and 2025[85]. - Forecast completions for residential buildings in Hong Kong are 22,851 new units in 2022 and 21,848 new units in 2023, driving demand for façade and curtain wall works[126]. - Office completions in Hong Kong are expected to increase to 350,200 m² in 2022, with Grade A completions accounting for 282,300 m²[131]. Risk Management - The Group believes that effective risk management practices are crucial to mitigate operational and financial risks[185][188]. - The Group's exposure to foreign exchange rate risk is limited, as there are no material monetary assets or liabilities denominated in foreign currencies, and currently, there is no foreign currency hedging policy in place[177][181]. - The management closely monitors the credit quality of trade receivables, with regular reviews of credit limits for customers[91]. Shareholder Information - As of September 30, 2022, Mr. Chow Mo Lam holds a long position of 600,000,000 shares, representing 75% of the Company[194]. - The interests of Mr. Chow and Mr. Yu in C.N.Y. Holdings Limited are 83% and 17%, respectively, with Mr. Chow deemed to be interested in the 600,000,000 shares held by the company[195]. - No directors or chief executives of the company had any interests or short positions in the company's shares or associated corporations as of September 30, 2022[199].
宝发控股(08532) - 2023 - 中期财报