Financial Performance - The group recorded a net loss of approximately HKD 1,615,000 for the six months ended September 30, 2023, compared to a net profit of HKD 4,252,000 for the same period in 2022[12]. - The group's revenue decreased by approximately HKD 21,799,000 or about 21.4% to approximately HKD 80,152,000 for the six months ended September 30, 2023, compared to approximately HKD 101,951,000 for the same period in 2022[18]. - The company reported a loss before tax of HKD 1,410,000, compared to a profit of HKD 4,838,000 in the previous year[47]. - The loss attributable to the company's owners increased by approximately HKD 5,867,000 or about 138.0% to approximately HKD 1,615,000 for the review period, compared to a profit of approximately HKD 4,252,000 for the same period in 2022[26]. - The basic and diluted loss per share was HKD (0.16), compared to earnings of HKD 0.43 per share in the previous year[47]. Revenue Breakdown - Total revenue for the six months ended September 30, 2023, was HKD 80,152,000, a decrease of 21.5% from HKD 101,951,000 in the same period of 2022[65][66]. - Customer contract revenue decreased to HKD 79,436,000 from HKD 101,739,000, representing a decline of 22% year-over-year[65][66]. - Rental income increased to HKD 716,000 from HKD 212,000, showing a significant growth of 237.7%[65]. - The construction services for residential buildings generated HKD 65,381,000, down from HKD 90,866,000, a decrease of 28%[66]. - The investment property leasing segment reported external revenue of HKD 716,000, compared to HKD 212,000 in the previous year[70]. Gross Profit and Margins - The group reported a gross profit of approximately HKD 9,780,000 during the review period, with a gross profit margin of approximately 12.2%, compared to a gross profit of approximately HKD 11,799,000 and a margin of 11.6% for the same period in 2022[11]. - Gross profit for the review period was approximately HKD 9,780,000, a decrease of about 17.1% from approximately HKD 11,799,000 for the six months ended September 30, 2022, with a stable gross profit margin of approximately 12.2%[19]. Investment Properties - The group incurred a loss of approximately HKD 192,000 in the investment property leasing segment, which is still in its initial stage[11]. - The group has purchased an additional investment property and plans to allocate more resources to this segment, aiming to generate rental income after renovations[16]. - The group has a total of six investment properties, with two already on the market after renovations and three currently undergoing renovations[11]. - The group recorded a fair value loss on investment properties of approximately HKD 3,346,000 during the review period, resulting from non-cash changes in fair value upon revaluation[20]. - The company incurred a fair value loss on investment properties of HKD 3,346,000 during the period[47]. Competition and Market Conditions - The group anticipates facing increased competition in the industry due to rising interest rates and a downturn in the Hong Kong property market, which has seen prices drop nearly 17% since August 2021[15]. - The group aims to maintain a competitive bidding pricing policy and strict cost control to achieve reasonable project gross margins amid industry challenges[15]. - The board remains optimistic about the long-term capital appreciation potential of investment properties despite the current market downturn[15]. Administrative and Financing Costs - Administrative expenses increased by approximately 3.8% to about HKD 8,348,000 compared to approximately HKD 8,042,000 for the same period in 2022[22]. - Financing costs rose by approximately 118.2% to about HKD 48,000, primarily due to new bank borrowings offsetting a decrease in lease liabilities[25]. Cash and Assets - As of September 30, 2023, the group's cash and bank balances totaled approximately HKD 30,661,000, down from approximately HKD 63,555,000 as of March 31, 2023[27]. - Total non-current assets increased to HKD 151,157,000 from HKD 138,462,000 as of March 31, 2023[48]. - Current assets decreased to HKD 133,335,000 from HKD 143,131,000 as of March 31, 2023[48]. - The company’s total assets less current liabilities stood at HKD 247,139,000, slightly up from HKD 245,766,000 as of March 31, 2023[48]. Employee Costs - The total employee cost for the review period was approximately HKD 14,953,000, compared to approximately HKD 13,657,000 for the same period in 2022, with the number of employees increasing to 90 from 63[42]. Shareholder Information - As of September 30, 2023, the major shareholder, Huayao, holds 750,000,000 shares, representing 75% of the company's equity[121]. - The spouse of the major shareholder, Ms. Huang Chunxiao, is also deemed to hold 750,000,000 shares, equating to 75% equity interest[121]. Corporate Governance - The company confirms compliance with the corporate governance code, with the roles of chairman and CEO currently held by the same individual, Mr. Chen Yuehua[127]. - The audit committee, established on December 12, 2019, consists of three independent non-executive directors to oversee internal controls and financial reporting[132]. - The mid-term financial performance has been reviewed and approved by the audit committee, ensuring compliance with applicable accounting standards and regulations[135].
华和控股(09938) - 2024 - 中期财报