[Caihua News] Huilong Holdings (08021.HK) announced that for the six months ended October 31, 2021, continuing operating income was about HK $104 million, an increase of 63.16% over the same period last year. Shareholders' share of self-continuing operating profit was about HK $27.818 million, compared with a loss of HK $45.752 million in the same period last year. Self-sustaining operating profit per share is 0.194 Hong Kong cents; no dividend is paid.
During the period under review, the increase in revenue was mainly due to an increase in contract income arising from the provision of scaffolding, fine decoration and other ancillary services for construction and construction works and an increase in income from lending business during the reporting period.
In addition, the increase in net profit attributable to company holders from continuing operations is mainly due to (I) a significant decrease in expected credit losses on recognized contractual assets, accounts receivable and loan balances by approximately HK $19.6 million during the reporting period compared with the same period in 2020; (ii) an one-time gain of approximately HK $29.3 million on the sale of a subsidiary during the reporting period (iii) the fair value gain generated by the Group's securities investment portfolio increased significantly by about HK $15.9 million, while the fair value loss generated by the Group's securities investment portfolio in the same period in 2020 was about HK $7.7 million; and (iv) during the reporting period, the Group's gross profit increased by about HK $10.8 million over the same period in 2020.
During the reporting period, the lending business continued to generate stable income for the Group and was one of the main sources of income for the Group.