Project and Contract Overview - As of September 30, 2023, the Group had nine major projects on hand with an awarded contract sum of HK$10.0 million or above[10]. - During the six months ended September 30, 2023, the Group completed four major projects with an awarded contract sum of HK$10.0 million or above[10]. - The Group was awarded two sizeable contracts during the same period, with an aggregate contract sum of approximately HK$546.7 million[11]. Business Strategy and Market Outlook - The Group aims to diversify its customer base and enhance its reputation by ensuring timely project completion with high quality[11]. - The management remains prudently optimistic about the prospects of the construction industry in Hong Kong[11]. - The Group plans to invest in building construction-related services to enhance capabilities and provide synergies to existing business[12]. - The Group believes that building information modeling services can differentiate it from competitors by providing innovative technical solutions[12]. - The Group is committed to maintaining high quality and workmanship in its services[12]. Financial Performance - The Group's revenue increased by approximately HK$43.0 million or approximately 9.5%, from approximately HK$451.4 million for the six months ended September 30, 2022, to approximately HK$494.4 million for the six months ended September 30, 2023[20][24]. - Revenue from building construction services decreased by approximately HK$1.4 million or approximately 0.4%, from approximately HK$315.0 million to approximately HK$313.6 million during the same period[21][25]. - Revenue from RMAA works services increased by approximately HK$44.4 million or approximately 32.6%, from approximately HK$136.4 million to approximately HK$180.8 million[22][26]. - The cost of sales increased by approximately HK$41.5 million or approximately 9.6%, from approximately HK$430.7 million to approximately HK$472.2 million[28][31]. - The gross profit increased by approximately HK$1.5 million or approximately 7.2%, from approximately HK$20.7 million to approximately HK$22.2 million[29][32]. - The gross profit margin slightly decreased from approximately 4.6% to approximately 4.5%[29][32]. - The gross profit from building construction services increased by approximately HK$0.3 million or approximately 2.2%, with a gross profit margin increase from approximately 4.4% to approximately 4.5%[30][33]. - The gross profit from RMAA works services increased by approximately HK$1.1 million or approximately 15.7%, but the gross profit margin decreased from approximately 5.1% to approximately 4.5%[35][38]. - Other income and gains decreased by approximately HK$1.9 million or approximately 32.8%, from approximately HK$5.8 million to approximately HK$3.9 million[36]. - Administrative and other operating expenses decreased by approximately HK$1.1 million or approximately 4.5%, from approximately HK$24.2 million to approximately HK$23.1 million[37]. Taxation and Profitability - The income tax expense was approximately HK$0.6 million for the six months ended September 30, 2023, compared to an income tax credit of approximately HK$0.2 million for the six months ended September 30, 2022, resulting in an effective tax rate of approximately 22.1%[43]. - Net profit decreased by approximately HK$0.4 million or approximately 15.4% from approximately HK$2.6 million for the six months ended September 30, 2022 to approximately HK$2.2 million for the six months ended September 30, 2023[44]. Financial Position and Liquidity - As at 30 September 2023, the Group had pledged deposits and cash and cash equivalents of approximately HK$75.3 million, down from approximately HK$98.4 million as at 31 March 2023[60]. - The current ratio of the Group was approximately 2.2 times as at 30 September 2023, compared to approximately 2.5 times as at 31 March 2023[60]. - As at 30 September 2023, the Group had no outstanding bank borrowings, and lease liabilities amounted to approximately HK$7.2 million[66]. - The Group's banking facilities were secured by pledged deposits of approximately HK$34.2 million and a life insurance policy of approximately HK$10.1 million[67]. - As of September 30, 2023, the gearing ratio of the Group was approximately 2.6%, an increase from 2.4% as of March 31, 2023[69][71]. - The Group had lease liabilities of approximately HKD 7.2 million as of September 30, 2023, compared to HKD 6.7 million as of March 31, 2023[70]. - The Group has no outstanding bank borrowings as of September 30, 2023, consistent with March 31, 2023[70]. Shareholder Information and Corporate Governance - The Board has resolved not to declare any interim dividend for the six months ended September 30, 2023, the same as the previous year[87][89]. - The number of share options available for grant under the Share Option Scheme remained at 80,000,000 as of September 30, 2023[91]. - No share options have been granted or exercised under the Share Option Scheme since its adoption on January 21, 2019[91]. - The Group has complied with all applicable code provisions of the Corporate Governance Code during the reporting period, except for the separation of the roles of Chairman and CEO[74][75]. - The Board consists of six Directors, including three executive Directors and three independent non-executive Directors, maintaining compliance with Listing Rules[81][84]. - The Group has recognized the importance of compliance with regulatory requirements and has adhered to relevant laws and regulations without any material breaches[86][88]. Stock Options and Share Awards - As of September 30, 2023, the number of stock options available for grant under the stock option plan was 80,000,000, representing 10% of the issued shares[94]. - No stock options were granted, exercised, expired, canceled, or lapsed under the stock option plan from its adoption date until September 30, 2023[94]. - As of September 30, 2023, the trustee held 6,796,000 shares under the share award plan, with no shares granted to eligible participants[95]. - No shares have been granted, vested, canceled, or lapsed under the share award plan since its adoption date until September 30, 2023[95]. Major Shareholders - Mr. KY Tsang holds a long position of 600,000,000 shares, representing 75% of the company's shareholding[100]. - Triple Arch Limited, which is 100% beneficially owned by Mr. KY Tsang, holds 600,000,000 shares, also representing 75% of the company's shareholding[106]. - Ms. Lai Yuk Lin, Eliza, holds an interest in 600,000,000 shares through her spouse, Mr. KY Tsang, representing 75% of the company's shareholding[106]. Related Party Transactions - No connected transactions or continuing connected transactions were entered into by the Group during the six months ended September 30, 2023[113]. - There were no significant contracts related to the Group's business involving any Director or their connected entities as of September 30, 2023[112]. - The Company and its subsidiaries did not purchase, sell, or redeem any shares during the six months ended September 30, 2023[115]. Cash Flow and Investments - Net cash flows used in operating activities improved to HK$4,648,000 in 2023 from HK$14,526,000 in 2022, indicating a reduction of 68.1%[149]. - The company reported a net cash flow used in investing activities of HK$1,370,000, a significant improvement from HK$10,261,000 in the previous year, showing a reduction of 86.6%[150]. - The principal portion of lease payments decreased to HK$2,335,000 from HK$3,454,000, a decrease of 32.5%[150]. - Cash generated used in operations was reported at HK$4,524,000, an improvement from HK$14,445,000 in the previous year, indicating a reduction of 68.7%[149]. Financial Statements and Accounting Policies - The interim financial information has been reviewed by the audit committee of the Board, ensuring compliance with relevant accounting standards[123]. - The financial statements of the subsidiaries are prepared for the same reporting period as the Company, ensuring consistent accounting policies[164]. - The Group's accounting policies remain consistent with those applied in the preparation of the annual consolidated financial statements for the year ended 31 March 2023, with no significant impact from new HKFRSs adopted[169]. - Segment results, assets, and liabilities for the six months ended 30 September 2023 and 2022 are provided for resource allocation and performance assessment[174]. Asset and Liability Overview - Total assets as of September 30, 2023, amounted to HK$473,455,000, an increase from HK$454,723,000 as of March 31, 2023[180]. - Total liabilities increased to HK$198,935,000 from HK$172,877,000, indicating a rise of 15.1%[180]. - Segment assets for construction contracts rose to HK$263,779,000 from HK$229,408,000, reflecting an increase of 15.0%[180]. - Segment liabilities for RMAA works increased to HK$40,527,000 from HK$38,920,000, a rise of 4.0%[180]. - Total non-current assets increased to HK$37,215,000 as of September 30, 2023, up from HK$33,798,000 on March 31, 2023, representing an increase of 10.4%[141]. - Current assets totaled HK$436,240,000 as of September 30, 2023, compared to HK$420,925,000 on March 31, 2023, reflecting a growth of 3.6%[141]. - Net current assets decreased to HK$240,411,000 as of September 30, 2023, down from HK$251,232,000 on March 31, 2023, a decline of 4.3%[141]. - Total equity attributable to equity holders of the Company decreased to HK$274,520,000 as of September 30, 2023, from HK$281,846,000 on March 31, 2023, a decrease of 2.6%[142]. Employee and Operational Expenses - Total staff costs (excluding Directors' remuneration) were approximately HK$46.9 million and HK$45.0 million for the six months ended September 30, 2023 and 2022, respectively[49]. - For the six months ended September 30, 2023, employee benefit expenses (excluding directors' remuneration) totaled HK$46,940,000, an increase of 4.4% from HK$44,959,000 in 2022[196]. - The employee benefit expense included in cost of sales was HK$38,182,000, compared to HK$36,346,000 in 2022, reflecting a growth of 5.1%[196]. - Administrative and other operating expenses decreased by approximately HK$1.1 million or approximately 4.5%, from approximately HK$24.2 million to approximately HK$23.1 million[37].
伟工控股(01793) - 2024 - 中期财报