Financial Performance - The group's revenue for the six months ended December 31, 2023, was HKD 10,046,000, a decrease of 53.3% compared to HKD 21,511,000 in the same period of 2022[3] - The gross profit for the six months was HKD 3,257,000, compared to a gross loss of HKD 118,000 in the previous year[3] - The company reported a net profit attributable to owners of HKD 2,054,000 for the six months, compared to a net loss of HKD 3,001,000 in the previous year[3] - The basic and diluted earnings per share for the six months was HKD 1.71, compared to a loss per share of HKD 2.50 in the same period of 2022[3] - For the six months ended December 31, 2023, the company recorded a net profit of approximately HKD 2.1 million, compared to a net loss of approximately HKD 3.0 million for the same period in 2022[42] - Total revenue for the six months ended December 31, 2023, was approximately HKD 10.0 million, down from approximately HKD 21.5 million for the same period in 2022, primarily due to a decrease in the number of construction projects undertaken[43] - The net profit attributable to owners for the six months ended December 31, 2023, was approximately HKD 3.0 million, compared to a loss of approximately HKD 2.1 million for the same period in 2022, mainly due to a reversal of expected credit loss provisions of approximately HKD 3.9 million[46] Cash Flow and Assets - The net cash generated from operating activities for the six months was HKD 2,212,000, down from HKD 12,731,000 in the same period of 2022[7] - The cash and cash equivalents at the end of the period increased to HKD 35,394,000 from HKD 33,291,000 at the beginning of the period[7] - The total assets less current liabilities as of December 31, 2023, amounted to HKD 38,644,000, an increase from HKD 36,652,000 as of June 30, 2023[5] - The company's non-current assets decreased to HKD 573,000 as of December 31, 2023, from HKD 741,000 as of June 30, 2023[4] - Cash and cash equivalents as of December 31, 2023, were HKD 35,394 thousand, an increase from HKD 33,291 thousand as of June 30, 2023[34] Liabilities and Equity - The total equity attributable to owners increased to HKD 38,599,000 as of December 31, 2023, from HKD 36,545,000 as of June 30, 2023[5] - The company reported total liabilities of HKD 2,680 thousand for trade payables and retention payables as of December 31, 2023[36] - The debt-to-equity ratio as of December 31, 2023, was approximately 0.5%, a decrease from approximately 0.9% as of June 30, 2023, reflecting improved financial stability[49] Expenses - The company incurred administrative expenses of HKD 5,192,000 for the six months, compared to HKD 3,811,000 in the same period of 2022[3] - Employee benefit expenses for the six months ended December 31, 2023, increased to HKD 5,074,000 from HKD 4,366,000 in 2022, representing a rise of 16.2%[20] - The group’s depreciation expense for property and equipment for the six months ended December 31, 2023, was HKD 44,000, compared to HKD 8,000 in 2022, reflecting a significant increase[20] Credit Losses and Provisions - The group recognized a credit for expected credit losses of HKD 3,900,000 for the six months ended December 31, 2023, compared to a credit of HKD 831,000 in the same period of 2022[20] - The company reversed expected credit loss provisions of approximately HKD 3.9 million related to trade receivables and contract assets during the six months ended December 31, 2023[42] - As of December 31, 2023, trade receivables were reported at HKD 4,397 thousand, with an expected credit loss provision of the same amount, resulting in a net trade receivables balance of zero[28] - Contract assets as of December 31, 2023, amounted to HKD 8,491 thousand, with a net balance of HKD 3,327 thousand after accounting for expected credit loss provisions[31] Business Development and Projects - The group has secured three construction projects since May 2023, with a total contract value of approximately HKD 123 million, indicating ongoing business development despite a challenging operating environment[47] - The board will continue to seek business development opportunities while balancing various commercial risks and opportunities, focusing on expanding market share in foundation and superstructure projects[47] Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial statements for the six months ending December 31, 2023[73] - The company has complied with all applicable provisions of the corporate governance code, except for a deviation regarding the separation of the roles of the chairman and CEO[64][65] Share Options and Dividends - The company did not recommend any dividend payment for the six months ended December 31, 2023, consistent with the previous year[24] - The board does not recommend the payment of an interim dividend for the six months ending December 31, 2023, consistent with the previous year[67] - The company has adopted a share option scheme effective from December 1, 2017, with a validity of 10 years[69] - A total of 10,000,000 share options were granted, with 4,000,000 options cancelled during the period[70] - The fair value of the share options granted on October 8, 2021, was approximately HKD 3,115,000, recognized as an expense in the financial statements[71] - The expected volatility for the share options was 185.5%, based on historical volatility[71] Risk Management - The group’s risk management policies have remained unchanged since June 30, 2023[14] - The group does not face significant foreign exchange risk as most of its revenue-generating activities are conducted in Hong Kong dollars[52] Other Information - The group has no significant capital commitments as of December 31, 2023, indicating a cautious approach to financial management[55] - No significant events requiring disclosure occurred after the reporting period[68] - The group employed a total of 26 employees as of December 31, 2023, with employee benefit expenses amounting to approximately HKD 5.1 million, compared to approximately HKD 4.4 million for the same period in 2022[58] - As of December 31, 2023, Zhao Xue Mei holds 8,999,000 shares, representing 7.49% of the total issued share capital[61] - The company did not purchase, sell, or redeem any of its listed securities during the six months ending December 31, 2023[63]
WT集团(08422) - 2024 - 中期财报