Financial Performance - The group's revenue increased by 7.9% to HKD 1,102,100,000 from HKD 1,021,500,000 in the previous period[7] - The profit and total comprehensive income for the period was HKD 55,200,000, representing a 26.2% increase from HKD 43,700,000 in the previous period[7] - The group's revenue increased by 7.9% to HKD 1,102,100,000, up from HKD 1,021,500,000 in the same period last year, with a contribution from the drilling segment rising by 121.9% to HKD 296,200,000[12] - The foundation segment's revenue decreased by 9.3% to HKD 805,800,000, down from HKD 888,000,000, primarily due to delays in private projects caused by unfavorable soil conditions[12] - Gross profit increased by 17.6% to HKD 174,500,000, compared to HKD 148,300,000 in the previous period, with the gross profit margin improving from 14.5% to 15.8%[13] - The group's net profit for the reporting period was HKD 55,200,000, an increase of 26.2% or HKD 11,500,000 compared to HKD 43,700,000 in the previous period, primarily due to an increase in gross profit from construction projects of HKD 26,200,000[16] - Revenue for the six months ended June 30, 2024, was HKD 1,102,053,000, compared to HKD 1,021,491,000 in the previous year, reflecting a growth in income[18] - Gross profit for the same period was HKD 174,482,000, up from HKD 148,312,000, indicating a positive trend in profitability[18] - The group reported a pre-tax profit of HKD 65,312,000, an increase from HKD 52,292,000, indicating a growth of 24.3%[23] - The group's pre-tax profit for the six months ended June 30, 2024, was HKD 55,197,000, compared to HKD 43,730,000 for the same period in 2023, indicating an increase of about 26.3%[45] Dividends and Shareholder Returns - The board recommended not to declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[8] - The company declared a dividend of HKD 60,000,000 for the year-end 2023, which was not present in the previous year[22] - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[46] Assets and Liabilities - Total current assets increased to HKD 1,432,210,000, up from HKD 1,276,689,000, representing a growth of approximately 12.2%[20] - Total assets as of June 30, 2024, amounted to HKD 1,922,150,000, with segment assets of HKD 1,536,459,000 in foundation construction and HKD 384,073,000 in drilling and site investigation[32] - Total liabilities increased to HKD 1,196,747,000 from HKD 1,026,546,000, representing a rise of approximately 16.6%[20] - The group’s total liabilities included HKD 747,411,000 in construction and supporting services and HKD 261,584,000 in drilling and site exploration as of June 30, 2024[34] - The company's equity decreased to HKD 725,403,000 from HKD 730,206,000, a decline of approximately 0.4%[22] Cash Flow and Financial Position - The group's cash and bank balances increased to HKD 736,400,000 as of June 30, 2024, from HKD 566,500,000 on December 31, 2023, primarily due to capital expenditures for the acquisition of factories and machinery[16] - Cash and cash equivalents rose to HKD 736,443,000, compared to HKD 566,535,000, marking an increase of 30%[24] - Operating cash flow for the six months ended June 30, 2024, was HKD 200,010,000, significantly higher than HKD 130,963,000 for the same period in 2023, reflecting a growth of 52.9%[23] - The net cash inflow from operating activities was HKD 199,966,000, compared to HKD 130,963,000, showing a growth of 52.7%[23] Employee and Administrative Expenses - Administrative expenses for the reporting period amounted to HKD 119,800,000, an increase of 17.4% or HKD 17,700,000 from HKD 102,100,000 in the previous period, mainly due to increased employee costs and maintenance expenses[15] - The group incurred employee benefit expenses of HKD 266,509,000 for the six months ended June 30, 2024, compared to HKD 235,341,000 in the same period of 2023, reflecting an increase of approximately 13.3%[41] - Short-term employee benefits for key management personnel increased to HKD 42,498,000 for the six months ended June 30, 2024, compared to HKD 37,817,000 for the same period in 2023, reflecting a growth of 17.7%[54] Strategic Development and Future Outlook - The group plans to strategically invest in talent development, machinery, and facilities to strengthen its competitive advantage[11] - The group aims to expand its service range and market coverage through the strategic development of its subsidiaries[11] - The group is actively seeking new warehouse and office buildings to expand its foundation business in both public and private sectors[11] - The group remains cautiously optimistic about the future of the foundation industry in Hong Kong, driven by long-term infrastructure and housing development plans[11] - The government aims to provide 308,000 public housing units by 2033-2034, reflecting a strong commitment to increasing housing supply despite current market challenges[10] Compliance and Governance - The group’s management has confirmed compliance with the corporate governance code throughout the reporting period[60] - No directors or their immediate family members were granted rights to profit from purchasing shares or bonds during the six-month period ending June 30, 2024[63] - The company and its subsidiaries did not purchase, sell, or redeem any of the company's listed shares during the six-month period ending June 30, 2024[66] Other Income and Gains - Other income and gains rose by 63.5% to HKD 10,700,000, up from HKD 6,500,000, mainly due to increased interest income from cash deposits[14] - The group recognized other income of HKD 10,695,000 for the six months ended June 30, 2024, compared to HKD 6,543,000 for the same period in 2023, marking an increase of about 63.7%[40] Segment Performance - The company operates in two segments: foundation construction and supporting services, and drilling and site investigation, with performance monitored for resource allocation and evaluation[29] - The adjusted profit before tax for the group was HKD 65,312,000, with segment profits of HKD 42,027,000 from foundation construction and HKD 24,903,000 from drilling and site investigation[30] - Inter-segment sales were conducted at market prices, with HKD 99,000 in inter-segment sales recorded[30]
建业建荣(01556) - 2024 - 中期财报