Financial Performance - Revenue for the six months ended October 31, 2024, was approximately HKD 16.3 million, a decrease of about 36.6% compared to HKD 25.7 million for the same period in 2023[10]. - Loss attributable to equity holders for the six months ended October 31, 2024, was approximately HKD 2.0 million, compared to a loss of HKD 4.3 million for the same period in 2023[11]. - Basic and diluted loss per share for the six months ended October 31, 2024, was approximately HKD 0.81 cents, compared to earnings of HKD 1.75 cents per share for the same period in 2023[11]. - Gross profit for the six months ended October 31, 2024, was approximately HKD 0.4 million, a decrease of about 20.0% from HKD 0.5 million for the same period in 2023[17]. - The gross profit margin increased from approximately 2.1% for the six months ended October 31, 2023, to approximately 2.3% for the same period in 2024, attributed to higher profit contributions from certain contracts[17]. - The company reported a loss before tax of HKD 1,997,000, an improvement from a loss of HKD 4,321,000 in the previous year, indicating a reduction in losses by 53.8%[64]. - Basic and diluted loss per share for the period was HKD (0.81), compared to HKD (1.75) in the prior year, showing a 53.7% improvement[64]. - The company reported a net cash inflow from investing activities of HKD 3,311,000, with no inflow reported in the same period last year[74]. - The company reported a loss attributable to equity holders of HKD (1,997,000) for the six months ended October 31, 2024, compared to a loss of HKD (4,321,000) in the same period last year[102]. Expenses and Costs - Administrative expenses increased by approximately 253.3% to HKD 5.3 million for the six months ended October 31, 2024, compared to HKD 1.5 million for the same period in 2023[18]. - Direct costs decreased by approximately 36.25% to HKD 16.0 million for the six months ended October 31, 2024, compared to HKD 25.1 million for the same period in 2023, primarily due to reduced revenue[17]. - Employee costs, including director remuneration, totaled HKD 1,171,000, slightly down from HKD 1,197,000 in the previous year[91]. - Subcontracting expenses included in direct costs were HKD 15,955,000, a decrease from HKD 25,118,000 in the previous year[91]. - The total compensation for key management personnel for the six months ended October 31, 2024, is HKD 352,000, a decrease from HKD 370,000 for the same period in 2023, reflecting a decline of 4.9%[123]. Cash and Liquidity - As of October 31, 2024, the company's cash and bank balances were approximately HKD 6.9 million, a decrease of approximately HKD 3.6 million from HKD 10.5 million as of April 30, 2024[22]. - Cash and cash equivalents at the end of the period were HKD 6,949,000, down from HKD 10,487,000, indicating a decrease of 33.9%[68]. - Net cash used in operating activities was HKD (6,849,000), compared to HKD (1,230,000) in the previous year, reflecting increased cash outflow[74]. - The company maintained a prudent treasury policy, ensuring a stable liquidity position and closely monitoring cash flow to manage liquidity risks[27]. Business Strategy and Market Outlook - The company plans to expand its business into other markets in the Asia-Pacific region, including Japan, Thailand, and Singapore, while continuing to focus on its core construction services in Hong Kong[15]. - The Hong Kong government has committed to developing the construction industry, with annual basic engineering expenditure expected to exceed HKD 100 billion, potentially increasing the overall construction volume to approximately HKD 300 billion per year[15]. - The company aims to enhance its competitive advantages in the construction industry and increase shareholder returns despite rising operational costs and intense market competition[15]. Share Capital and Governance - The company’s issued share capital as of October 31, 2024, was HKD 12,320,000, with 246,400,000 ordinary shares issued[31]. - The company did not recommend the payment of an interim dividend for the six months ended October 31, 2024, compared to no dividend in 2023[50]. - The company has complied with the corporate governance code as per GEM Listing Rules, despite a temporary reduction in the number of independent non-executive directors[47][48]. - The audit committee reviewed the unaudited interim financial statements for the six months ended October 31, 2024, and found them compliant with applicable accounting standards and GEM Listing Rules[62]. - The company has made efforts to fill the vacancy left by the resignation of an independent non-executive director within the stipulated three-month period[48]. Assets and Liabilities - Total assets as of October 31, 2024, were HKD 79,050,000, a slight decrease from HKD 80,071,000 as of April 30, 2024[68]. - Current liabilities increased to HKD 20,020,000 from HKD 19,120,000, representing a rise of 4.7%[68]. - The total equity attributable to the company's equity holders decreased to HKD 62,790,000 from HKD 64,787,000, a decline of 3.1%[68]. - The total liabilities, including trade and other payables, amounted to HKD 19,993,000 as of October 31, 2024, compared to HKD 19,043,000 as of April 30, 2024, indicating an increase of 5.0%[117]. - Trade receivables as of October 31, 2024, amounted to HKD 40,784,000, with a credit loss provision of HKD (28,143,000), resulting in a net receivable of HKD 12,641,000[103]. - Contract assets as of October 31, 2024, were HKD 10,405,000, an increase from HKD 9,845,000 as of April 30, 2024[111]. Other Information - The company did not engage in any acquisitions or disposals of subsidiaries or associates during the reporting period[36]. - The company has not reported any significant temporary differences, thus no deferred tax provisions were recognized in the financial statements[98]. - There were no purchases, sales, or redemptions of the company's listed securities during the reporting period[46]. - The company has classified its financial assets measured at fair value through profit or loss as Level 1, based on market prices available from relevant exchanges[116]. - The company has no interests or positions in any competing businesses as confirmed by its directors and their close associates[45]. - The share options plan adopted in September 2016 remains in effect, with no options available for grant as of May 1, 2024[58]. - The company aims to attract and retain employees through its share options plan, which has been reviewed and approved by the remuneration committee[61]. - The company confirmed that there were no significant post-reporting period events as of the report date[52].
泰锦控股(08321) - 2025 - 中期财报