Revenue and Financial Performance - The Group recorded total revenue of approximately MOP135.6 million for the six months ended June 30, 2023, representing an increase of approximately MOP8.5 million or 6.7% compared to MOP127.1 million for the same period in 2022[10]. - Revenue from Hong Kong projects reached approximately MOP120.4 million in the Period 2023, marking an increase of approximately 182.6% from MOP42.6 million in the Period 2022[15]. - The increase in revenue was primarily due to the easing of COVID-19 quarantine measures and higher manpower input for certain projects in Hong Kong[10]. - The Group's revenue increased by approximately 6.7%, from approximately MOP127.1 million in 2022 to approximately MOP135.6 million in 2023, primarily due to successful market strategies implemented in Hong Kong[20]. - The Group reported a net profit of approximately MOP4.7 million for 2023, compared to a net loss of approximately MOP1.4 million in 2022, with basic earnings per share of approximately MOP0.23 cents[44][49]. - Gross profit rose to MOP 14,199, representing a 17.9% increase compared to MOP 12,038 in the prior year[22]. - Profit before taxation improved significantly to MOP 5,521, compared to a loss of MOP 950 in the same period last year[22]. - The Group's overall gross profit for the Group's E&M engineering works was approximately MOP14.2 million in 2023, up from approximately MOP12.0 million in 2022, with the gross profit margin increasing from approximately 9.5% to approximately 10.5%[24]. Economic Environment and Market Trends - The economy of Macau SAR experienced a significant growth of 38.8% in real terms in the first quarter of 2023 compared to the previous quarter[11]. - The Directors expect an improving business environment in the coming years due to the recovery from the COVID-19 epidemic and the relief of control measures in Macau and Hong Kong[16]. - The gross domestic product of Macau increased by 56.4% compared to the fourth quarter of 2022, indicating a significant sign of improvement[11]. - The Group aims to capture new market trends and rising needs for E&M engineering services following the recovery from the COVID-19 epidemic[16]. Operational Developments - The Group plans to strengthen its workforce to undertake larger projects, leading to an expansion of its project management team in the Period 2023[16]. - Advanced building technologies, including Building Information Modeling, are being adopted for project management and construction efficiency, showcasing the integration of digital technologies into construction practices[16]. - The Group's E&M maintenance department continued to develop by performing periodic inspections and regular maintenance for hotels and residential properties during the Period 2023[15]. - The Group is expanding its project management team to better handle larger and more complex projects in the future[18]. - Advanced construction technologies, including building information modeling, are being adopted to enhance project management and construction efficiency[18]. Financial Position and Management - The Group maintains a strong net cash position with limited bank borrowing, indicating a solid financial position[20]. - As of June 30, 2023, cash and cash equivalents were approximately MOP18.2 million, down from approximately MOP20.4 million at the end of 2022, while time deposits were approximately MOP21.6 million[46][51]. - Working capital as of June 30, 2023, was approximately MOP198.9 million, an increase from approximately MOP193.6 million at the end of 2022, with a net asset value of approximately MOP228.6 million[47]. - The gearing ratio as of June 30, 2023, was approximately 23.7%, slightly up from approximately 23.6% at the end of 2022[47]. - The Group has adopted a prudent financial management approach towards its treasury policy, closely monitoring liquidity to meet funding requirements[52]. - The Group faces minimal foreign currency risk as most transactions are denominated in MOP or Hong Kong dollars, and currently does not have a foreign currency hedging policy[53][57]. Shareholder and Corporate Governance - The Board did not recommend the payment of an interim dividend for 2023, consistent with the previous year[45][50]. - The Company has complied with the Corporate Governance Code during the Period 2023 and up to the date of the interim report[110]. - Changes in the Board included the resignation of two independent non-executive Directors and the appointment of two new independent non-executive Directors effective May 5, 2023[127]. - The Company will periodically review its corporate governance policies to ensure compliance with the code provisions[111]. Cash Flow and Investments - The company recorded a significant increase in segment revenue in the Hong Kong market, prompting the decision to strengthen manpower[89]. - The net proceeds from the listing were approximately MOP73.2 million, with a reallocation to strengthen manpower in the Hong Kong market due to significant revenue growth[87][88]. - The actual usage of net proceeds includes MOP 22.9 million for upfront costs and performance bonds for future projects, and MOP 15.3 million for establishing the E&M Maintenance Department[92]. - The company plans to fully utilize the unutilized net proceeds within six months after the reporting period ending June 30, 2023[94]. - The company aims to enhance its market competitiveness through the reallocation of financial resources[89]. Trade and Receivables Management - As of June 30, 2023, the Group recognized cumulative credit loss allowances of approximately MOP17.9 million on contract assets and approximately MOP4.4 million on trade receivables[32]. - Management is optimistic about the recoverability of outstanding balances due to positive arbitration outcomes with direct customers[36]. - Trade receivables increased to MOP 68,752,000 as of June 30, 2023, from MOP 66,249,000 as of December 31, 2022, reflecting a growth in sales[181]. - The allowance for credit losses on trade receivables decreased to MOP 4,441,000 from MOP 7,278,000, indicating improved credit quality[181]. - The group reversed expected credit losses amounting to MOP 1,394,000 during the current interim period, compared to a provision of MOP 2,518,000 in the same period of 2022[184]. Liabilities and Financial Obligations - The total liabilities as of June 30, 2023, amounted to MOP 41,941,000, compared to MOP 41,747,000 as of December 31, 2022, indicating a marginal increase[196]. - The company continues to manage its financial obligations effectively, as evidenced by the reduction in trade payables and accrued expenses[196]. - Trade payables decreased from MOP 13,949,000 as of December 31, 2022, to MOP 8,521,000 as of June 30, 2023, representing a reduction of approximately 38.3%[196]. - The ageing analysis of trade payables shows that the amount overdue for over 90 days decreased from MOP 6,756,000 to MOP 4,799,000, a decline of about 29.0%[197].
澳达控股(09929) - 2023 - 中期财报