Gelonghui August 28?Jianye Jianrong (01556.HK) noticeIn the interim results for the six months ended June 30, 2023, the group's revenue increased by 19.9 per cent year-on-year to HK $1.02 billion during the reporting period.The group's net profit during the reporting period was HK $43.7 million, an increase of 23.1% over the same period last year. The increase in net profit was mainly due to the provision for impairment losses of HK $9.5 million in the previous period, which was not provided for during the period under review.The ordinary equity holders of the company shall account for HK2.92 cents per share of earnings.The Board recommends against the payment of an interim dividend for the six months ended 30 June 2023 (2022: nil).
The group's overall gross profit margin remained stable, at 14.5 per cent during the reporting period, compared with 15.0 per cent in the previous period. The increase in gross margin was due to the increase in the Group's revenue, while the stability of the gross profit margin was due to ample bidding opportunities in the foundation market, particularly from the public sector, which enabled the Group to increase the tender price or reasonable profit on the winning contract amount, to reflect the complexity and difficulty of the foundation contract. In addition, the Group also insists on strict project cost control and close monitoring of construction progress to ensure that tender profits will not decline.