Financial Performance - For the six months ended September 30, 2022, the group's revenue was approximately HKD 104.7 million, an increase of about 16.1% compared to HKD 90.2 million for the same period in 2021[7] - Gross profit for the same period was approximately HKD 26.0 million, a decrease of about 13.3% from HKD 30.0 million in the previous year[7] - Net profit decreased from approximately HKD 7.6 million for the six months ended September 30, 2021, to approximately HKD 2.3 million for the same period in 2022[7] - Basic and diluted earnings per share for the six months ended September 30, 2022, were HKD 0.23, down from HKD 0.76 for the same period in 2021[7] - Total comprehensive income for the six months ended September 30, 2022, was HKD 2.33 million, down from HKD 7.60 million in the previous year[8] - The pre-tax profit for the six months ended September 30, 2022, was HKD 4.33 million, compared to HKD 9.41 million for the same period in 2021[8] - The company reported a profit before tax of HKD 4,331,000 for the six months ended September 30, 2022, down from HKD 9,406,000 in the same period of 2021[31] - Profit and total comprehensive income decreased from approximately HKD 7.6 million to approximately HKD 2.3 million[72] Revenue Breakdown - Revenue from construction protection engineering for the six months ended September 30, 2022, was HKD 74,438,000, up 37.0% from HKD 54,330,000 in the previous year[26] - Revenue from the supply of construction protection products decreased by 15.7% to HKD 30,225,000 for the six months ended September 30, 2022, compared to HKD 35,838,000 in 2021[26] - Revenue from Hong Kong for the six months ended September 30, 2022, was HKD 99,878,000, an increase of 23.5% from HKD 80,853,000 in 2021[33] - Revenue from Macau decreased significantly to HKD 4,785,000 for the six months ended September 30, 2022, down from HKD 9,315,000 in the previous year[33] - Revenue from construction protection services accounted for 71.1% of total revenue in the six months ended September 30, 2022, amounting to HKD 74.4 million, compared to 60.3% and HKD 54.3 million in the same period of 2021[60] Assets and Liabilities - As of September 30, 2022, total assets amounted to HKD 267,052 thousand, an increase from HKD 258,220 thousand as of March 31, 2022, reflecting a growth of approximately 3.2%[10] - The company's net current assets stood at HKD 130,307 thousand, slightly down from HKD 132,000 thousand as of March 31, 2022, indicating a decrease of about 1.3%[10] - Total equity increased to HKD 184,376 thousand as of September 30, 2022, from HKD 182,051 thousand as of March 31, 2022, marking a growth of approximately 1.3%[12] - The company’s total liabilities increased to HKD 32.6 million as of September 30, 2022, compared to HKD 27.5 million as of March 31, 2022[53] Cash Flow and Financing - The operating cash flow for the six months ended September 30, 2022, was HKD 1,808 thousand, a decline of 52.9% compared to HKD 3,833 thousand for the same period in 2021[14] - The company incurred financing cash outflows of HKD 3,214 thousand for the six months ended September 30, 2022, compared to inflows of HKD 19,808 thousand in the same period of the previous year[17] - Cash and cash equivalents decreased to HKD 41,337 thousand as of September 30, 2022, from HKD 46,978 thousand as of March 31, 2022, a decline of approximately 12.1%[10] - Interest expenses on bank loans increased to HKD 151,000 for the three months ended September 30, 2022, from HKD 79,000 in the same period of 2021[36] Employee Costs - Total employee costs for the six months ended September 30, 2022, amounted to HKD 21,059,000, an increase from HKD 18,498,000 in the same period of 2021[37] - As of September 30, 2022, the total employee cost (excluding directors' remuneration) was approximately HKD 15.0 million, compared to HKD 13.7 million for the same period in 2021, reflecting an increase of about 9.5%[88] Operational Challenges - The impact of the COVID-19 pandemic has caused delays in some construction protection projects, with ongoing effects expected until the situation is under control[97] - The company has implemented effective measures to protect employee health, including regular disinfection, mandatory mask-wearing, and temperature checks[98] - The impact of the COVID-19 pandemic remains a significant risk factor for the group’s business operations and financial performance[104] Corporate Governance - The company emphasizes the importance of good corporate governance practices, adhering to GEM listing rules[114] - The chairman and CEO roles are held by Mr. Lin, which the board believes is in the best interest of the group despite deviating from corporate governance guidelines[115] - The audit committee was established on March 18, 2020, and has reviewed the financial reporting process and internal controls, ensuring compliance with applicable accounting standards[118] Future Outlook - The company is focused on expanding its workforce and securing more construction protection projects in Hong Kong to strengthen its market position[98] - The group continues to face risks including reliance on subcontractors and third-party suppliers, which could adversely affect financial performance[104]
新威工程集团(08616) - 2023 - 中期财报