Financial Performance - For the six months ended December 31, 2023, the company's revenue was HKD 10,046,000, a decrease of 53.3% compared to HKD 21,511,000 for the same period in 2022[5] - The gross profit for the six months was HKD 3,257,000, compared to a gross loss of HKD 118,000 in the same period last year[5] - The net profit attributable to the owners of the company for the six months was HKD 2,054,000, compared to a net loss of HKD 3,001,000 in the previous year[5] - Basic and diluted earnings per share for the six months were HKD 1.71, compared to a loss per share of HKD 2.50 for the same period last year[5] - The company's profit before tax for the six months ended December 31, 2023, was HKD 2,054,000, compared to a loss of HKD 3,001,000 in the same period of 2022, representing a significant turnaround[28] - Total revenue for the six months ended December 31, 2023, was approximately HKD 10.0 million, a decrease from approximately HKD 21.5 million for the same period in 2022, primarily due to a reduction in the number of construction projects undertaken[45] - Gross profit for the six months ended December 31, 2023, was approximately HKD 3.3 million, an increase of approximately HKD 3.4 million compared to a gross loss of approximately HKD 0.1 million for the same period in 2022[46] Cash and Assets - The company's cash and cash equivalents increased to HKD 35,394,000 as of December 31, 2023, up from HKD 33,291,000 as of June 30, 2023[6] - Total assets less current liabilities amounted to HKD 38,644,000 as of December 31, 2023, compared to HKD 36,652,000 as of June 30, 2023[6] - The company's total equity increased to HKD 38,599,000 as of December 31, 2023, from HKD 36,545,000 as of June 30, 2023[7] - Total cash and cash equivalents increased by HKD 2,103,000 to HKD 35,394,000 as of December 31, 2023, compared to HKD 43,040,000 in the previous year[6] - As of December 31, 2023, the company maintained a current ratio of approximately 7.9 times, up from approximately 7.1 times as of June 30, 2023[50] - As of December 31, 2023, the company had cash and bank balances of approximately HKD 35.4 million, compared to approximately HKD 33.3 million as of June 30, 2023[50] Expenses - The company reported a decrease in service costs to HKD 6,789,000 for the six months, down from HKD 21,629,000 in the previous year[5] - The company’s administrative expenses increased to HKD 5,192,000 for the six months, compared to HKD 3,811,000 in the previous year[5] - Employee benefit expenses increased to HKD 5,074,000 for the six months ended December 31, 2023, up from HKD 4,366,000 in 2022, reflecting a rise of approximately 16.1%[27] - The interest expense on lease liabilities for the six months ended December 31, 2023, was HKD 8,000, down from HKD 20,000 in the same period of 2022, reflecting a decrease of 60%[23] Dividends and Shareholder Information - The company did not recommend any dividend payment for the six months ended December 31, 2023, consistent with the previous year[26] - The group has not proposed an interim dividend for the six months ended December 31, 2023, consistent with the previous year[69] - As of December 31, 2023, Zhao Xue Mei holds 8,999,000 shares, representing approximately 7.49% of the total issued share capital[63] - The company has no plans for any potential dilution of ordinary shares during the reporting periods[29] Financial Risks and Governance - The group faces various financial risks, including credit risk and cash flow risk, which are detailed in the annual financial statements[15] - The group faces credit risk from customers, which may adversely affect its liquidity if customers fail to make timely or full payments[59] - The board believes that the dual role of the chairman and CEO enhances management efficiency and business development, despite a deviation from corporate governance code A.2.1[66] Accounting and Compliance - The company has not identified any significant impact on its financial position and performance from the adoption of new accounting standards effective from July 1, 2023[14] - The company continues to assess the impact of new accounting standards that have been issued but are not yet effective[14] - The audit committee consists of three independent non-executive directors, ensuring compliance with GEM listing rules[75] - The unaudited condensed consolidated interim financial statements for the six months ended December 31, 2023, have been reviewed by the audit committee[75] - The company has adhered to GEM listing rule 5.28, which requires the audit committee to include at least one member with appropriate professional qualifications or accounting expertise[75] Operational Insights - The group operates primarily in Hong Kong, with all activities and assets located in the region[20] - The performance of the group is dependent on the trends and developments in the Hong Kong construction industry[59] - The group relies on subcontractors for part of its site works, and any underperformance or inability to provide services by these subcontractors may adversely affect the group's operations and profitability[59] - The company continues to monitor the latest developments in the Hong Kong property market and may adjust strategies as necessary[49] Other Income and Projects - Other income for the six months ended December 31, 2023, included government grants of HKD 0, down from HKD 78,000 in 2022[21] - The company reported a total of HKD 148,000 in other income for the six months ended December 31, 2023, compared to HKD 117,000 in 2022, representing a 26.5% increase[21] - The company reported a total of HKD 8,491,000 in unverified ongoing projects as contract assets as of December 31, 2023, compared to HKD 2,580,000 as of June 30, 2023, representing an increase of approximately 228.3%[33] Stock Options and Share-Based Payments - The fair value of the stock options granted on October 8, 2021, is approximately HKD 3,115,000, which has been deducted as share-based payment expenses in the profit and loss for the six months ended December 31, 2021[73] - The exercise price of each stock option after the share consolidation effective on April 12, 2022, is HKD 0.560[73] - The expected volatility used in the pricing model is 185.5%[73] Reporting and Documentation - The report will be available on the GEM website and the company's website for at least seven days from the announcement date[77] - The report is prepared in English and translated into Chinese, with the English version prevailing in case of discrepancies[78]
WT集团(08422) - 2024 - 中期业绩