Financial Performance - Revenue for the six months ended June 30, 2023, was HKD 10,663,824, a decrease of 23.6% compared to HKD 13,959,825 in the same period of 2022[14] - Gross profit for the same period was HKD 2,743,264, down 66.7% from HKD 8,245,596 year-on-year[14] - The net loss for the period increased to HKD 10,037,162, representing a 21.7% increase from a loss of HKD 8,245,698 in 2022[14] - The adjusted net loss, excluding gains or losses from the sale of machinery and equipment, was HKD 8,612,779, which is a 106.2% increase compared to HKD 4,176,536 in the previous year[14] - Total revenue decreased from approximately HKD 14.0 million to approximately HKD 10.7 million for the six months ended June 30, 2023, a decline of approximately 23.6%, primarily due to reduced rental income from the owned leasing fleet[37] - The company reported a revenue of HKD 10.66 million for the six months ended June 30, 2023, a decrease of 23.3% compared to HKD 13.96 million for the same period in 2022[72] - The gross profit for the six months ended June 30, 2023, was HKD 2.74 million, down 66.8% from HKD 8.25 million in the previous year[72] - The company incurred a loss before tax of HKD 10.57 million for the six months ended June 30, 2023, compared to a loss of HKD 7.83 million for the same period in 2022[72] - The basic and diluted loss per share for continuing operations was HKD 1.16 for the six months ended June 30, 2023, compared to HKD 0.94 for the same period in 2022[72] - The company reported a loss attributable to owners of the company of HKD 10,037,162 for the six months ended June 30, 2023, compared to a loss of HKD 7,958,948 for the same period in 2022, representing a 26% increase in losses[103] - The basic loss per share for the six months ended June 30, 2023, was HKD 1.16, compared to HKD 0.94 for the same period in 2022, indicating a 23% increase in loss per share[103] Revenue Streams - The demand for the company's rental machinery decreased, with rental income dropping from approximately HKD 13.9 million to HKD 7.3 million for the six months ended June 30, 2023[18] - Total sales of construction machinery, tools, and parts increased from approximately HKD 0 to approximately HKD 117,000 for the six months ended June 30, 2023, primarily due to increased demand[19] - Revenue from transportation and other services rose from approximately HKD 84,000 to approximately HKD 654,000 for the six months ended June 30, 2023, mainly due to increased transportation service fees charged to customers[21] - Foundation engineering and supporting services generated revenue of approximately HKD 2.4 million for the six months ended June 30, 2023, compared to zero revenue for the same period in 2022[25] - Loan interest income from the lending business amounted to approximately HKD 150,000 for the six months ended June 30, 2023, compared to zero for the same period in 2022[31] - Revenue from machinery leasing for the six months ended June 30, 2023, was HKD 7,289,656, down from HKD 13,853,414 in the same period of 2022, indicating a decrease of about 47.5%[88] - Construction services revenue for the six months ended June 30, 2023, was HKD 2,394,153, compared to HKD 0 in the same period of 2022, showing a significant increase[88] - Interest income for the six months ended June 30, 2023, was HKD 150,000, compared to HKD 0 in the same period of 2022, marking a new revenue stream[88] Expenses and Costs - Sales and service costs increased to approximately HKD 7.9 million for the six months ended June 30, 2023, from approximately HKD 5.7 million for the same period in 2022, mainly due to increased service costs in the foundation construction segment[38] - Administrative expenses rose to approximately HKD 8.4 million for the six months ended June 30, 2023, from approximately HKD 7.8 million for the same period in 2022, primarily due to increased employee costs and other administrative expenses[40] - Total costs of sales for the six months ended June 30, 2023, amounted to HKD 2,204,283, down from HKD 3,052,498 in the same period of 2022, representing a decrease of approximately 27.8%[95] - Financing costs for the six months ended June 30, 2023, totaled HKD 512,402, a decrease from HKD 776,612 in the same period of 2022, reflecting a reduction of approximately 34.1%[93] Cash Flow and Financial Position - As of June 30, 2023, the group had cash and bank balances of approximately HKD 7.0 million, a decrease from HKD 9.8 million as of December 31, 2022, primarily due to the repayment of overdraft financing[45] - Cash and cash equivalents decreased to HKD 6,981,597 as of June 30, 2023, from HKD 9,804,156 as of December 31, 2022, reflecting a decline of approximately 29.0%[74] - The company reported a net cash outflow from operating activities of HKD (1,793,740) for the six months ended June 30, 2023, compared to a net inflow of HKD 3,478,038 for the same period in 2022[78] - The net cash used in financing activities was HKD (6,646,044) for the six months ended June 30, 2023, compared to HKD (1,844,342) in the same period of 2022[78] - The company’s bank overdraft decreased to HKD (1,321,638) as of June 30, 2023, from HKD (2,341,431) as of December 31, 2022, indicating a reduction of approximately 43.6%[74] Assets and Liabilities - As of June 30, 2023, the total assets decreased to HKD 68,011,182 from HKD 78,579,775 as of December 31, 2022, representing a decline of approximately 13.4%[74] - The total equity as of June 30, 2023, was HKD 66,382,582, down from HKD 76,419,744 as of January 1, 2023, indicating a decrease of approximately 13.2%[75] - The company’s trade and other payables increased significantly to HKD 6,975,007 as of June 30, 2023, from HKD 2,812,841 as of December 31, 2022, marking an increase of approximately 147.0%[74] - Trade receivables as of June 30, 2023, amounted to HKD 17,668,092, an increase from HKD 17,061,507 as of December 31, 2022[108] - The expected credit loss provision for trade receivables increased to HKD 8,461,367 as of June 30, 2023, compared to HKD 7,425,395 as of December 31, 2022[108] - Trade payables increased significantly from HKD 529,941 as of December 31, 2022, to HKD 1,568,173 as of June 30, 2023[111] - Contract liabilities rose sharply from HKD 15,484 as of December 31, 2022, to HKD 2,525,484 as of June 30, 2023[111] Corporate Governance and Compliance - The company confirmed that it has complied with relevant laws and regulations during the reporting period, with no serious violations[69] - The company has adhered to the GEM listing rules and corporate governance code, although it does not separate the roles of Chairman and CEO[139] - The audit committee consists of three independent non-executive directors, ensuring compliance with GEM listing rules regarding financial reporting and risk management[142] - The audit committee has reviewed the unaudited interim results for the six months ending June 30, 2023, confirming compliance with applicable accounting standards[142] - The board believes that having one person serve as both Chairman and CEO provides strong and consistent leadership for long-term business strategy[139] - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balanced distribution of power[139] - The company aims to continuously review its corporate governance practices to meet regulatory requirements and shareholder expectations[140] Future Outlook and Strategy - The company anticipates a steady recovery in the construction and foundation industry in Hong Kong, driven by increased vaccination rates and a decrease in COVID-19 cases[11] - The company plans to seek collaboration and investment opportunities with quality companies in emerging industries to enhance and expand its business[11] - The company is focused on maintaining stability and sustainable development of its existing business while exploring new project bidding opportunities[11] - The company will continue to leverage its industry experience and resources to navigate future market conditions[11] - The company aims to explore new opportunities and partnerships to enhance its business portfolio and shareholder returns[35] Risks and Challenges - The group faced operational, credit, and market risks, with management actively monitoring and mitigating these risks[49][54] - The company faces risks related to reliance on a concentrated customer base, which could adversely affect its operations and financial performance[71]
维亮控股(08612) - 2023 - 中期财报