Financial Performance - Gross profit increased by approximately HKD 0.8 million or 8.4% to HKD 9.9 million for the six months ended June 30, 2023, compared to HKD 9.2 million for the same period in 2022[6] - Gross margin remained stable at approximately 11.3% for the six months ended June 30, 2023, compared to 11.0% for the same period in 2022[6] - The group reported a total revenue of HKD 2,397,000 for the six months ended June 30, 2023, up from HKD 2,261,000 in the previous year, indicating a year-on-year growth of approximately 6%[44] - The group's revenue increased from approximately HKD 83.2 million for the six months ended June 30, 2022, to approximately HKD 88.2 million for the six months ended June 30, 2023, representing a growth of about HKD 5.0 million or 6.0%[183] - For the six months ended June 30, 2023, the total comprehensive income increased to approximately HKD 6.4 million, representing a growth of about HKD 0.4 million or 6.0% compared to the same period in 2022[115] - The total revenue for the six months ended June 30, 2023, was HKD 88,173,000, an increase from HKD 83,184,000 in 2022, representing a growth of 6.0%[197] Dividends and Share Capital - The board proposed an interim dividend of HKD 0.025 per share for the six months ended June 30, 2023, compared to no dividend for the same period in 2022[7] - As of June 30, 2023, the company's issued share capital amounted to HKD 4.0 million, divided into 400,000,000 shares at HKD 0.01 each[103] - The interim dividend record date is set for September 19, 2023, with a suspension of share transfer registration from September 18 to September 19, 2023[175] Employee Costs and Workforce - Employee costs, including director remuneration, increased from HKD 25.364 million in 2022 to HKD 30.013 million in 2023[23] - Total employee costs (excluding directors' remuneration) for the six months ended June 30, 2023, were approximately HKD 31.1 million, up from HKD 26.3 million for the same period in 2022[153] - The company has 151 employees as of June 30, 2023, an increase from 137 employees as of December 31, 2022[137] Financial Position and Ratios - The group recorded a net current asset value of approximately HKD 139.5 million as of June 30, 2023, down from HKD 161.2 million as of December 31, 2022[81] - The debt-to-equity ratio was approximately 0.8% as of June 30, 2023, down from 1.0% as of December 31, 2022[90] - As of June 30, 2023, the current ratio was approximately 4.1 times, down from 5.5 times as of December 31, 2022[117] - The group's equity attributable to owners was approximately HKD 145.6 million as of June 30, 2023, with no changes in capital structure since listing[118] Revenue Sources - Revenue from public projects reached HKD 74,461,000, up from HKD 72,712,000 in the previous year, reflecting a growth of 2.4%[197] - Revenue from private projects increased to HKD 13,712,000, compared to HKD 10,472,000 in the same period of 2022, marking a growth of 31.5%[197] Contractual Obligations and Pipeline - The group has received 44 contracts with a total contract value of approximately HKD 666.1 million, of which 32 contracts valued at HKD 62.9 million have been completed[65] - As of June 30, 2023, the group has 12 ongoing contracts with a total value of approximately HKD 603.2 million, indicating a strong pipeline of work[65] - The group has unbilled revenue of HKD 43,687,000 as of June 30, 2023, compared to HKD 20,835,000 as of December 31, 2022, reflecting a growth of approximately 109%[54] Costs and Expenses - Total service costs increased from approximately HKD 74.0 million to approximately HKD 78.2 million, reflecting a rise of about 5.7% due to increased revenue[78] - The company reported lease liabilities interest of HKD 41,000 for the six months ended June 30, 2023, compared to HKD 3,000 for the same period in 2022[22] - Administrative expenses for the six months ended June 30, 2023, were approximately HKD 4.6 million, remaining stable compared to the previous period[112] - The group's financial costs for the six months ended June 30, 2023, were approximately HKD 41,000, an increase from HKD 3,000 in the same period of 2022, attributed to the rise in lease liabilities[113] Governance and Compliance - The company confirmed compliance with the corporate governance code since its listing date[139] - The company has adopted the principles and code provisions of the Corporate Governance Code as the basis for its corporate governance practices[154] - The audit committee consists of four members, with Mr. Cao Bingchang serving as the chairman, who has over 19 years of professional accounting experience[156] - The company has complied with the listing rules regarding the trading of securities by directors and relevant employees, with no violations found during the review period[168] Environmental and Social Responsibility - The company has implemented various environmental protection measures to minimize its impact on the environment and natural resources[120] - The company has sufficient environmental protection measures to ensure compliance with all applicable laws and regulations in Hong Kong[160] Future Outlook and Challenges - The construction industry in Hong Kong is facing a shortage of 17,500 to 24,000 workers, which is expected to increase to 48,500 to 55,000 by 2027, impacting the group's ability to recruit sufficient construction personnel[66] - The group has adopted a conservative bidding strategy for new projects until sufficient resources are available due to the labor shortage[66] - The group plans to adopt a conservative approach to new project tenders due to labor shortages, with the government suggesting the hiring of up to 12,000 non-local workers to alleviate this issue[75] Cash Flow and Investments - Operating cash flow before tax profit increased to HKD 7,667,000 for the six months ended June 30, 2023, compared to HKD 6,838,000 in the same period of 2022, representing a growth of 12.1%[189] - The net cash generated from operating activities decreased to HKD 2,575,000 in the first half of 2023, down from HKD 4,618,000 in 2022, a decline of 44.3%[189] - Cash flow from investing activities showed a net inflow of HKD 2,134,000 for the six months ended June 30, 2023, compared to a net outflow of HKD 2,780,000 in the same period of 2022[189] - The company invested approximately HKD 34,000 in the acquisition of properties, plants, and equipment during the six months ended June 30, 2023[92] Taxation - The income tax expense rose by approximately HKD 0.5 million or 60.8%, from HKD 0.8 million for the six months ended June 30, 2022, to HKD 1.2 million for the same period in 2023[114]
丰城控股(02295) - 2023 - 中期财报