Financial Performance - The group's revenue decreased by approximately 41.0 million HKD or 28.7% to about 101.7 million HKD for the six months ended September 30, 2022, compared to approximately 142.7 million HKD for the same period in 2021[41]. - Gross profit for the review period was approximately 11.7 million HKD, a decrease of about 27.7% from approximately 16.2 million HKD for the six months ended September 30, 2021[42]. - The profit attributable to the owners of the company decreased by approximately HKD 4.0 million or about 48.2% to approximately HKD 4.3 million during the review period, down from approximately HKD 8.3 million for the six months ended September 30, 2021[48]. - Net profit for the period was HKD 4,252 thousand, a decline of 48.6% from HKD 8,254 thousand in the previous year[77]. - The company reported a pre-tax profit of HKD 4,838 thousand, down 50.3% from HKD 9,717 thousand in 2021[77]. - The basic earnings per share for the six months ended September 30, 2022, was HKD 4,252,000, down from HKD 8,254,000 in 2021, a decline of 48.6%[132]. Revenue and Income Sources - Revenue for the six months ended September 30, 2022, was HKD 101,739 thousand, a decrease of 28.7% compared to HKD 142,679 thousand in 2021[77]. - Revenue from residential building construction services increased to HKD 90,866,000 in 2022 from HKD 73,324,000 in 2021, representing a growth of 23.9%[114]. - Other income for the six months ended September 30, 2022, totaled HKD 1,558,000, significantly up from HKD 215,000 in 2021, indicating a growth of 624.7%[118]. - The group received government subsidies of HKD 1,063,000 under the Hong Kong government's anti-epidemic fund, which was not present in the previous year[118]. Expenses and Costs - Administrative expenses for the review period were approximately 8.2 million HKD, an increase of about 2.5% from approximately 8.0 million HKD for the same period in 2021[46]. - The total employee cost for the review period was approximately HKD 13.7 million, down from approximately HKD 14.5 million for the six months ended September 30, 2021, with a total of 63 employees as of September 30, 2022[71]. - The financing cost for the group during the review period was approximately HKD 22,000, a decrease of about 51.1% compared to HKD 45,000 for the six months ended September 30, 2021, primarily due to a reduction in lease liabilities[47]. - The company incurred a loss of HKD 249 thousand in trade receivables impairment, compared to a gain of HKD 1,142 thousand in the previous year[77]. Assets and Liabilities - As of September 30, 2022, the group's cash and bank balances totaled approximately HKD 53.0 million, down from HKD 62.8 million as of March 31, 2022, with no bank borrowings reported[49]. - Total assets as of September 30, 2022, were HKD 280,035 thousand, compared to HKD 267,751 thousand as of March 31, 2022[83]. - The debt-to-equity ratio as of September 30, 2022, was approximately 0.4%, a decrease from approximately 0.7% as of March 31, 2022[56]. - Trade receivables amounted to HKD 34,679,000 as of September 30, 2022, compared to HKD 23,502,000 as of March 31, 2022[147]. - Trade payables increased to HKD 15,519,000 as of September 30, 2022, from HKD 8,342,000 as of March 31, 2022[151]. Investment and Capital Expenditure - The group's capital expenditure during the review period was approximately HKD 111,000, significantly lower than approximately HKD 236,000 for the six months ended September 30, 2021[57]. - The group acquired additional investment properties amounting to approximately HKD 16,247,000 during the six months ended September 30, 2022[133]. - Investment properties were reclassified at a fair value of approximately HKD 1,750,000 as of September 30, 2022, due to a change in property use[133]. - The group has capital commitments of approximately HKD 2,528,000 for properties, plants, and equipment as of September 30, 2022[160]. Corporate Governance and Management - The company has adopted and complied with the corporate governance code, ensuring the separation of roles between the chairman and the CEO, although both roles are currently held by Mr. Chen Yuehua[184]. - The board consists of experienced and capable individuals, with sufficient independent elements to ensure effective governance[184]. - The audit committee, established on December 12, 2019, is composed of three independent non-executive directors to oversee internal controls, risk management, and financial reporting[190]. - The company confirmed that it maintained sufficient public float during the review period as per listing rules[189]. - All directors confirmed full compliance with the securities trading code throughout the review period[187]. Future Outlook and Challenges - The company plans to explore additional business opportunities to enhance future development and strengthen its revenue base[40]. - The ongoing COVID-19 situation continues to pose risks to the company's operations and project completion timelines[36]. - The company is facing challenges from intense competition and rising raw material prices, which may impact profitability[36]. - The group’s financial position shows a strong increase in lease income, indicating potential for future growth and market expansion[165].
华和控股(09938) - 2023 - 中期财报