Revenue and Profitability - The revenue for the six months ending September 30, 2024, increased compared to the same period in 2023, primarily due to the commencement of new construction projects[15] - Total revenue increased from approximately HKD 20,533,000 for the six months ended September 30, 2023, to approximately HKD 26,001,000 for the six months ended September 30, 2024, representing an increase of about 26.6%[21] - Gross profit rose from approximately HKD 583,000 for the six months ended September 30, 2023, to approximately HKD 2,842,000 for the six months ended September 30, 2024, indicating a significant increase[22] - The net loss for the period decreased from approximately HKD 19,633,000 for the six months ended September 30, 2023, to approximately HKD 4,698,000 for the six months ended September 30, 2024, a reduction of about 76.0%[28] - Operating loss for the six months was HKD 4,338,000, a substantial reduction from HKD 19,273,000 in the previous year[63] - The net loss attributable to equity holders for the period was HKD 4,698,000, compared to HKD 19,633,000 in the prior year, indicating a 76.1% improvement[63] Investment and Financial Position - As of September 30, 2024, the company held a significant investment in Huilong Holdings Limited, valued at approximately HKD 9,923,000, representing about 12.2% of total assets[19] - The total investment in Huilong Holdings includes 381,660,000 shares, accounting for 2.66% of the equity in that investment[19] - The company will continue to maintain a diversified investment portfolio and closely monitor investment performance and market trends[19] - The company's equity attributable to equity holders decreased to HKD 28,419,000 from HKD 33,117,000, reflecting a decline of 14.1%[65] - Cash and cash equivalents decreased to HKD 1,966,000 from HKD 1,973,000 year-over-year, with a net cash outflow from operating activities of HKD 2,039,000[69] Expenses and Cost Management - Administrative expenses increased from approximately HKD 1,869,000 for the six months ended September 30, 2023, to approximately HKD 3,836,000 for the six months ended September 30, 2024, an increase of about 104.7%[24] - The company reported a significant reduction in administrative and other operating expenses to HKD 3,836,000 from HKD 1,869,000, which is an increase of 104.5%[63] - The total employee cost for the six months ended September 30, 2024, was approximately HKD 2,656,000, compared to HKD 2,898,000 for the same period in 2023[39] - Employee benefits expenses, including directors' remuneration, decreased to HKD 2,605,000 for the six months ended September 30, 2024, from HKD 2,831,000 in the previous year[87] Market and Operational Outlook - The company anticipates that 2025 will present both opportunities and challenges, with public spending commitments creating more market opportunities[16] - Difficult geological conditions, adverse weather, and unforeseen issues during project execution may impact profitability as a subcontractor[16] - The company aims to strengthen its competitive advantage in the civil engineering industry while maintaining overall cost control[16] - The company is evaluating the feasibility of obtaining licenses to operate civil engineering and related operations in countries such as Japan and Thailand to enhance shareholder returns[16] Corporate Governance and Compliance - The audit committee has reviewed the unaudited consolidated financial statements for the six months ending September 30, 2024, confirming compliance with applicable accounting standards and GEM listing rules[61] - The company has adhered to all applicable corporate governance codes as per GEM listing rules during the reporting period[51] - The company has confirmed that all directors have complied with the trading code of conduct for securities transactions during the reporting period[52] - No major shareholders have reported interests in the company's shares or related securities that need to be recorded in the company's register[48] - The company has not disclosed any interests or positions held by directors or senior management in competing businesses[49] Share Capital and Dividends - The company did not declare an interim dividend for the six months ended September 30, 2024, and September 30, 2023[40] - As of September 30, 2024, the company has issued a total of 301,860,000 ordinary shares, with key executives holding 780,000 shares each, representing 0.26% of the issued share capital[45] - The company has granted a total of 19,842,480 share options under its share option scheme, with an exercise price of HKD 0.16 per share[55] - The share option plan was adopted on March 24, 2016, and is governed by the provisions of Chapter 23 of the GEM listing rules[55] Assets and Liabilities - Total assets as of September 30, 2024, were HKD 53,154,000, compared to HKD 48,437,000 as of March 31, 2024, showing a growth of 9.0%[65] - Trade and other receivables were HKD 34,662,000, down from HKD 37,695,000, indicating a decrease of 8.1%[65] - Trade receivables, net of credit loss provisions, amounted to HKD 43,929,000 as of September 30, 2024, down from HKD 47,255,000 as of March 31, 2024[96] - Trade payables increased to HKD 14,811,000 as of September 30, 2024, compared to HKD 12,672,000 as of March 31, 2024[98] - Contract assets as of September 30, 2024, were HKD 24,491,000, an increase from HKD 21,615,000 as of March 31, 2024[92] - The expected recoverable amount of contract assets in one year is HKD 12,377,000, up from HKD 10,923,000 as of March 31, 2024[93]
菊福堂生物(08217) - 2025 - 中期财报