[Caihua News] Gaofeng Group Holdings (02863.HK) announced that as of September 30, 2021, the company's annual income was about HK $255 million, up 4.36% from the same period last year; gross profit was HK $43.828 million, down 17.12% from the same period last year; profit and comprehensive income for the year totaled HK $17.248 million, down 26.36% from the same period last year; basic earnings per share were HK2.61 cents; no annual dividend was paid.
Among them, the decrease in gross profit in 2021 was mainly due to an increase in the cost of sales of electricity and maintenance engineering services. The Group's gross profit margin decreased from 21.7% in the financial year 2020 to 17.2% in the financial year 20201, due to the increase in materials, labor costs and subcontracting costs affected by COVID-19.
The decrease in total profit and comprehensive income was mainly due to a decrease in gross profit of approximately HK $9.1 million, a decrease in other income of about HK $1.2 million, an increase in other income and losses of about HK $5.8 million, a recognised impairment loss of approximately HK $300000 on trade receivables and contract assets, an increase of approximately HK $2.6 million in administrative expenses and a decrease in income tax expenses of approximately HK $1.2 million.
In the next two years, the company will focus on five major projects, including Mplus, Kwong Wah Hospital, the new Inland Revenue Building, Queen Mary Hospital and Immigration headquarters, and has contributed about HK $228 million, accounting for 89.5% of the total revenue for the financial year 2021. In fiscal year 2021, there were no trading business transactions (fiscal year 2020: approximately HK $8.6 million) due to difficulties in communication with the counterparties under the COVID-19 order. Rental income from property investment is about HK $1.4 million. In the future, the confirmed tender order for the project on hand is about HK $1.171 billion, and the completion date of the project will be extended to the financial year 2023.