Net profit increased by 10% YoY, Proposed an interim dividend of HK1.5 cents per share

Highlights:

• Revenue generated from environmental operations increased by 132.1% to approximately HK$114.8 million.
• Gross profit increased by 10.8% to approximately HK$150.5 million.
• Net profit increased by 10.3% to approximately HK$46.0 million.
• Basic earnings per share was HK9.1 cents. The Board recommended the payment of interim dividend of HK1.5 cents per share.

Financial Highlights:

For the 6 months ended 30 June
HK$'000	2023	2022	Change
Revenue	2,832,073	2,919,864	-3.0%
Construction operations Environmental operations	2,717,304 114,769	2,870,415 49,449	-5.3% +132.1%
Gross profit	150,480	135,756	+10.8%
Gross profit margin Net profit	5.3% 45,954	4.7% 41,668	+0.6 ppts. +10.3%
Earnings per share (HK cents)	9.1	8.3	+9.7%

HONG KONG SAR - Media OutReach - 25 August 2023 - CR Construction Group Holdings Limited ("CR Construction" or the "Company", together with its subsidiaries, the "Group"; stock code: 1582.HK), a building contractor in Hong Kong, announced its interim results for the six months ended 30 June 2023 (the "Reporting Period"). During the Reporting Period, the revenue recorded by the Group amounted to approximately HK$2,832.1 million representing a decrease of approximately 3.0% as compared to approximately HK$2,919.9 million for the six months ended 30 June 2022 (the "Corresponding Period Last Year"). Net profit of the Group during the Reporting Period was approximately HK$46.0 million, representing an increase of 10.3% as compared to the Corresponding Period Last Year. During the Reporting Period, gross profit of the Group was approximately HK$150.5 million, representing an increase of approximately 10.8% as compared to approximately HK$135.8 million for the Corresponding Period Last Year. The Group's gross profit margin was approximately 5.3% and 4.7% for the six months ended 30 June 2023 and 2022, respectively. The gross profit margin of the Group increased slightly by approximately 0.6 percentage points by comparing the six months ended 30 June 2023 against the six months ended 30 June 2022. During the Reporting Period, earnings per share of the Group was approximately HK9.1 cents (for the six months ended 30 June 2022: HK8.3 cents). The Board recommended the payment of interim dividend of 1.5 cents per share. BUSINESS REVIEWConstruction OperationsBuilding Construction Works For the six months ended 30 June 2023, the revenue generated from the building construction works was HK$2,455.9 million, representing an increase of approximately 9.9% as compared to approximately HK$2,235.5 million for the six months ended 30 June 2022. During the Reporting Period, the gross profit of building construction works was approximately HK$130.6 million, representing an increase of approximately 98.2% as compared to approximately HK$65.9 million for the Corresponding Period Last Year. The gross profit margin increased to approximately 5.3% for the six months ended 2023. The increase in gross profit and gross profit margin was mainly due to additional cost incurred for variation orders for projects during the prior period, while the respective revenue were only certified during the Reporting Period. Repair, Maintenance, Alteration and Addition ("RMAA") The revenue generated from the RMAA works decreased by approximately 58.8% from approximately HK$634.9 million for the six months ended 30 June 2022 to approximately HK$261.4 million for the six months ended 30 June 2023. During the Reporting Period, the gross loss of RMAA works was approximately HK$1.4 million, representing a decrease of approximately HK$56.3 million from the gross profit of approximately HK$54.9 million for the six months ended 30 June 2022. The gross profit margin decreased to approximately negative 0.5% for the six months ended 30 June 2023. The decrease in the gross profit and gross profit margin for the six months ended 30 June 2023 was mainly due to additional cost incurred for variation orders for a project during the Reporting Period, while the respective revenue is expected to be recognised at a later stage. Environmental Operations For the six months ended 30 June 2023, the revenue generated from the environmental operations was approximately HK$114.8 million, representing an increase of approximately 1.3 times as compared to approximately HK$49.5 million for the six...