2021-12-09-港交所-沪港联合_中期报告2021_22_70页_3mb

Summary of Financial Performance

Overview

HKG Shanghai Alliance Holdings Limited ("the Company") reported significant growth in revenue and profitability for the six months ended 30 September 2021 ("Period") compared to the same period in 2020. Revenue increased to approximately HK$1,359 million, a 42.3% year-on-year growth, primarily driven by higher steel prices and increased order delivery in the Construction Materials Business. Gross profit rose to HK$191.9 million, with a stable gross profit margin of 14.1%. Net profit attributable to owners of the Company reached HK$49.6 million, up 105 times year-on-year, due to improved cost control and higher operational efficiency.

Business Segments

• Property Investment and Project Management Business: Achieved revenue of HK$47 million and a profit before income tax of HK$1.8 million, improved from a loss of HK$2.3 million in the same period 2020, driven by higher occupancy rates and rental income.
• Construction Materials Business: Revenue surged to HK$1,115 million, with profit before income tax of HK$62.6 million, a 137.4% increase, led by higher demand in Hong Kong's public and private construction projects.
• Building and Design Solutions Business: Revenue reached HK$197.1 million, with a 56.5% increase in profit before income tax to HK$25.0 million, attributed to completed high-profile projects.

Financial Position

Total assets increased to HK$3,235 million, reflecting growth in inventories and trade receivables. Net asset value per ordinary share reached HK$1.49 as at 30 September 2021. The gearing ratio slightly increased to 60.3%, monitored via effective treasury management policies.

Outlook

The Company remains optimistic about sustained growth, driven by market recovery in Shanghai's office leasing, strategic investments in commercial properties, and initiatives to enhance operational efficiency and mitigate financial risks.

Key Highlights

• Revenue Growth: 42.3% increase to HK$1,359 million.
• Profit Margin: Gross margin maintained at 14.1%, net profit up 105 times year-on-year.
• SEGMENT PERFORMANCE: All business segments showed significant improvement, with the Construction Materials Business leading in revenue growth.

Overall, the Company demonstrated resilience and strategic execution amidst market disruptions, with a focus on asset revitalization and operational efficiency.