[Caihua News] China Public Procurement (01094.HK) announced that revenue for the six months ended June 30, 2021 was about HK $20.2 million, an increase of 45.7% over the same period last year. Gross profit was about HK $9.881 million, up 14.18% from a year earlier. The loss attributable to shareholders was about HK $4.072 million, down 46.29% from a year earlier. Loss per share of HK1.67 cents; no dividend.

Income includes HK $4.924 million from public procurement, accounting for 24.4% of the total income; HK $5.94 million from the provision of enterprise IT solutions, accounting for 29.4% of the total income; and rental income of HK $9.336 million, accounting for 46.2% of the total income. All divisions of the Group recorded an increase in revenue during the period, including an increase in revenue from public procurement and the provision of enterprise IT solutions due to increased market demand, as well as an increase in rental prices for the company's commercial building in Wuhan, Hubei Province, the PRC, also significantly increased rental income.

Administrative expenditure during the period was HK $17.201 million, down 4.8 per cent from HK $18.059 million in the same period last year. Administrative expenses mainly include staff costs and benefits, office expenses, rental expenses and professional fees. The slight reduction in administrative expenses is mainly due to the implementation of more accurate direct cost control during the period, so that the wages of some technical personnel are redistributed from administrative expenses to the direct costs of related sales projects. the wages of employees in administrative expenses decreased and the corresponding cost of sales increased.

The decrease in losses was mainly due to an increase in gross profit, an increase in other income, a decrease in administrative expenses and a reversal of impairment losses on trade and other receivables due to an increase in income during the period.