智城发展控股(08268) - 2025 - 中期财报

Financial Statements Condensed Consolidated Statement of Profit or Loss During the period, revenue slightly increased to HKD 201.7 million, but gross profit decreased to HKD 10.83 million due to higher cost of sales, leading to an expanded loss before tax of HKD 8.78 million and a basic loss per share of 3.58 HK cents Condensed Consolidated Statement of Profit or Loss Summary | Metric | H1 2024 (HKD '000) | H1 2023 (HKD '000) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 201,705 | 195,631 | +3.1% | | Gross Profit | 10,826 | 12,913 | -16.2% | | Loss Before Tax | (8,782) | (4,300) | +104.2% | | Total Comprehensive Loss for the Period | (8,782) | (4,300) | +104.2% | | Basic and Diluted Loss Per Share | (3.58) HK cents | (1.79) HK cents | +100.0% | Condensed Consolidated Statement of Financial Position As of September 30, 2024, total assets were HKD 320.8 million, with net current assets increasing to HKD 59.17 million due to reduced current liabilities, and total equity rising to HKD 135.4 million from new share placements Key Items from Statement of Financial Position | Metric | As at Sep 30, 2024 (HKD '000) | As at Mar 31, 2024 (HKD '000) | Change | | :--- | :--- | :--- | :--- | | Total Non-current Assets | 79,970 | 92,421 | -13.5% | | Total Current Assets | 240,848 | 240,616 | +0.1% | | Total Current Liabilities | 181,679 | 200,217 | -9.3% | | Net Current Assets | 59,169 | 40,399 | +46.5% | | Net Assets | 135,350 | 128,927 | +5.0% | | Total Equity | 135,350 | 128,927 | +5.0% | - The asset-liability structure improved, with an enhanced liquidity ratio and increased shareholders' equity due to new share issuance[17][19][25] Condensed Consolidated Statement of Changes in Equity During the period, total equity increased from HKD 128.9 million to HKD 135.4 million, primarily due to HKD 15.84 million raised from new share issuance, partially offset by a loss for the period of HKD 8.78 million - The company issued HKD 6,000 thousand in new share capital and gained HKD 9,840 thousand in share premium during the period, totaling HKD 15,840 thousand in gross proceeds[25] - The loss for the period of HKD 8,782 thousand partially offset the increase in equity from new share issuance[25] Condensed Consolidated Statement of Cash Flows During the period, net cash and cash equivalents increased by HKD 3.34 million, driven by a net inflow of HKD 11.18 million from financing activities due to new share placements, despite a net cash outflow from operating activities of HKD 11.01 million Cash Flow Statement Summary | Item | H1 2024 (HKD '000) | H1 2023 (HKD '000) | | :--- | :--- | :--- | | Net Cash Flows from Operating Activities | (11,010) | (23,159) | | Net Cash Flows from Investing Activities | 3,175 | (448) | | Net Cash Flows from Financing Activities | 11,177 | (7,821) | | Net Increase in Cash and Cash Equivalents | 3,342 | (31,428) | | Cash and Cash Equivalents at End of Period | 52,507 | 27,907 | - Financing activities were the key driver for the cash increase this period, primarily from net proceeds of HKD 15.21 million from new share placements[32] Notes to the Unaudited Condensed Consolidated Financial Statements 3. Operating Segment Information The company operates four segments: construction, securities investment, property investment, and money lending, with construction being the primary revenue source but incurring an operating loss of HKD 8.34 million, while money lending and securities investment contributed the main profits H1 2024 Performance by Business Segment (HKD '000) | Business Segment | Revenue | Operating Profit/(Loss) | | :--- | :--- | :--- | | Construction Contracts and Related Businesses | 197,120 | (8,336) | | Securities Investment | 1,791 | 705 | | Property Investment | 297 | (976) | | Money Lending Business | 2,497 | 1,512 | - Despite construction business having the highest revenue contribution, its losses dragged down the group's overall performance, with money lending and securities investment becoming the primary profit sources[59] 4. Revenue, Other Income and Gains Total revenue for the period was HKD 201.7 million, a 3.1% year-on-year increase, with construction revenue from customer contracts at HKD 197.1 million (up 2.7%) and other income (primarily financial asset gains and interest) at HKD 4.585 million (up 24.1%) Revenue Composition (HKD '000) | Revenue Category | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Construction Contracts and Related Businesses | 197,120 | 191,937 | | Other Income Sources | 4,585 | 3,694 | | Total | 201,705 | 195,631 | - Within construction business revenue by project type, electrical and mechanical engineering and interior decoration works saw increased revenue, while building construction works revenue decreased[76] 13. Share Capital On September 12, 2024, the company placed 48,000,000 ordinary shares at HKD 0.33 per share, generating net proceeds of approximately HKD 15.1 million and increasing issued share capital from HKD 30 million to HKD 36 million - On September 12, 2024, the company allotted 48,000,000 new ordinary shares at a price of HKD 0.33 per share[134] - The net proceeds from this share placement amounted to approximately HKD 15,100,000[134] Management Discussion and Analysis Business and Financial Review During the period, total revenue grew 3.1% to HKD 201.7 million, driven by construction and money lending, but gross margin declined to 5.4% due to increased competition, resulting in a loss before tax of HKD 8.78 million, while liquidity and financial resources remained stable with an improved current ratio of 1.33 - Total revenue increased by 3.1%, with construction business growing 2.7% and money lending business growing 38.4%[154][156] - Gross margin decreased from 6.6% to 5.4% due to intense competition in the construction market[170][173][176] - The company's financial position remained robust, with cash and equivalents increasing to HKD 52.51 million and the current ratio improving to 1.33[190] Construction Segment Review The construction segment's total revenue grew 2.7% to HKD 197.1 million, with electrical and mechanical engineering and interior decoration works showing significant growth, while building construction works revenue decreased due to project completion Construction Business Revenue Breakdown (HKD '000) | Project Type | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Building Construction Works | 95,012 | 99,302 | -4.3% | | Electrical and Mechanical Engineering Works | 90,137 | 84,864 | +6.2% | | Interior Decoration Works | 11,971 | 7,771 | +54.0% | Capital Structure and Fundraising Activities In September 2024, the company completed a placement of 48 million shares, raising net proceeds of approximately HKD 15.1 million, with HKD 4.8 million utilized by September 30 for expanding money lending and securities investment, supplementing working capital, and exploring new opportunities Planned Use and Actual Utilization of Placing Proceeds (HKD million) | Use of Proceeds | Planned Utilization Amount | Actual Utilization as at Sep 30 | | :--- | :--- | :--- | | Expansion of Money Lending Business | 5.0 | 4.5 | | Expansion of Securities Investment Business | 4.0 | – | | General Working Capital | 4.1 | 0.3 | | Exploration of New Business Opportunities | 2.0 | – | | Total | 15.1 | 4.8 | Prospects The group plans to balance construction business development in Hong Kong and Macau, leveraging qualifications for market competition with over HKD 1.224 billion in contracts on hand, while prudently managing investment portfolios and developing the money lending business, also exploring opportunities in MiC and Greater Bay Area development - Construction Business: The group will adopt prudent bidding strategies and leverage existing qualifications to expand business, with total contracts on hand exceeding HKD 1.224 billion as of the reporting date[213][220] - Investment Business: Given market volatility, the group will adopt prudent management measures for securities and property investments[232][235][237] - Money Lending Business: Despite increasing market competition, the group believes this business will bring positive impact and returns, and will continue its development efforts[238][239] Significant Investments As of September 30, 2024, the group held approximately HKD 31 million in financial assets at fair value through profit or loss, primarily comprising equity investment in Sprocomm Intelligence Limited, Hong Kong SAR Government Green Retail Bonds, and two bond funds under JPMorgan and AllianceBernstein Major Investment Portfolio (As at Sep 30, 2024) | Investment Item | Market Value (HKD '000) | Percentage of Group's Net Assets | | :--- | :--- | :--- | | Sprocomm Intelligence Limited (Listed Equity) | 9,120.0 | 6.7% | | Hong Kong SAR Government Green Retail Bonds (Listed Debt) | 5,949.0 | 4.4% | | JPMorgan Asia Total Return Bond Fund (Unlisted Debt) | 3,127.1 | 2.3% | | AllianceBernstein-US Dollar Income Fund (Unlisted Debt) | 2,873.6 | 2.1% | | Other Investments | 9,844.7 | 7.3% | Other Information During the period, the group had no significant acquisitions, disposals, or future investment plans, with 109 employees and increased staff welfare expenses, no outstanding share options, and disclosed major shareholder holdings and directors' interests in competing businesses, confirming compliance with corporate governance codes - There were no significant acquisitions, disposals, or major investment plans during the reporting period[265][266] - As of September 30, 2024, Masan Multi Strategy Fund SPC was a major shareholder, holding 13.79% of shares[288] - Company directors Mr. Wong Yuk Lun and Mr. Lam Wai Hung hold positions in Nova Group Holdings Limited, another listed company primarily engaged in money lending, indicating a potential business competition relationship[297]