FSE LIFESTYLE-丰盛生活服务(00331) - 2024 - 中期财报

Revenue and Profit Performance - Revenue for the six months ended December 31, 2023, increased by 10.8% to HKD 4,114.5 million compared to HKD 3,712.1 million in the same period last year[11] - Gross profit decreased by 3.5% to HKD 516.4 million from HKD 535.0 million in the previous year[11] - Profit attributable to shareholders decreased by 8.6% to HKD 255.4 million from HKD 279.5 million[11] - Basic earnings per share decreased by 8.2% to HKD 0.56 from HKD 0.61[11] - Adjusted profit, excluding government subsidies, decreased by 1.5% to HKD 231.0 million from HKD 234.5 million[11] - Revenue for the six months ended December 31, 2023, increased to HKD 4,114.5 million, up from HKD 3,712.1 million in the same period in 2022[110] - Gross profit for the six months ended December 31, 2023, was HKD 516.4 million, compared to HKD 535.0 million in the same period in 2022[110] - Operating profit for the six months ended December 31, 2023, was HKD 300.9 million, down from HKD 328.8 million in the same period in 2022[110] - Net profit attributable to shareholders for the six months ended December 31, 2023, was HKD 255.4 million, compared to HKD 279.5 million in the same period in 2022[110] - Basic and diluted earnings per share for the six months ended December 31, 2023, were HKD 0.56, down from HKD 0.61 in the same period in 2022[110] - Revenue from property and facility management services decreased to HK $329.797 million from HK$ 356.802 million year-over-year[127] - Revenue from integrated living services increased to HK $2,142.602 million from HK$ 1,849.373 million year-over-year, driven by growth in cleaning and pest control services (HK $1,128.052 million vs. HK$ 826.803 million)[127] - Revenue from mechanical and electrical engineering services increased to HK $1,642.124 million from HK$ 1,505.943 million year-over-year[127] - Total revenue for the six months ended December 31, 2023, was HK $4,114.523 million, up from HK$ 3,712.118 million in the same period last year[127] - Revenue from technical support and maintenance services increased to HKD 181.67 million, up from HKD 123.12 million in the previous year[130] - Environmental services revenue decreased to HKD 76.17 million from HKD 83.53 million year-over-year[130] - Mechanical and electrical engineering services revenue rose to HKD 1.64 billion, compared to HKD 1.51 billion in the prior year[130] - Total revenue for the six months ended December 31, 2023, was HKD 4.11 billion, with external revenue contributing HKD 4.11 billion and internal revenue adjustments of HKD 43.66 million[132] - Operating profit before unallocated corporate expenses was HKD 304.45 million, with a net profit of HKD 255.46 million after tax[132] - Revenue from Hong Kong increased to HK $3,763.0 million in 2023 from HK$ 3,488.6 million in 2022, while revenue from Mainland China rose to HK $263.7 million from HK$ 166.7 million, and Macau revenue increased to HK $87.8 million from HK$ 56.8 million[140] - Operating profit before unallocated corporate expenses was HK $331.9 million, with the property and facilities management segment contributing HK$ 76.8 million, integrated living services HK $144.0 million, and electromechanical engineering services HK$ 111.1 million[136] - Net profit for the period was HK $280.1 million, a decrease from HK$ 325.4 million in the previous year, primarily due to higher tax expenses of HK $45.3 million[136] - Basic earnings per share for the period were HK$ 0.56, down from HK $0.61 in the previous year, with net profit attributable to shareholders of HK$ 255.4 million[146] - Diluted earnings per share for the six months ended December 31, 2023 and 2022 were equal to basic earnings per share due to the non-conversion of convertible preferred shares[147] - The company's profit before tax for the six months ended December 31, 2023, was HK $302.220 million, down from HK$ 325.383 million for the same period in 2022[160] - The company's operating cash flow before working capital changes was HK $333.131 million for the six months ended December 31, 2023, compared to HK$ 364.359 million for the same period in 2022[160] - The company's trade receivables and payables changes resulted in a negative operating cash flow of HK $15.061 million for the six months ended December 31, 2023, compared to a positive HK$ 184.371 million for the same period in 2022[160] Dividend and Shareholder Information - The company declared an interim dividend of HKD 22.4 cents per share, down from HKD 24.5 cents in the previous year[11] - The company's dividend payout ratio for the six months ended December 31, 2023, was 40.1%, based on adjusted profit attributable to ordinary shareholders of HK $251.1 million[12] - Interim dividend declared for the six months ended December 31, 2023 was HK$ 0.224 per ordinary share, totaling HK $100.8 million, compared to HK$ 0.245 per share and HK15 billion[30] - The company's property and facilities management group is one of the largest independent players in Hong Kong's residential, non-residential, and parking property management markets[37] - The company introduced innovative service models in property and facilities management, including the "SmartUrban" internet-supported operating system and drone applications[38] - The company's cleaning and pest control business, Hui Kang, submitted 206 cleaning service contract bids during the period, with a total bid amount of HKD 4.298 billion, and was awarded 55 new service contracts with a total contract value of HKD 842 million[41] - Hui Kang's cleaning and pest control business employs over 12,000 staff and manages a fleet of more than 80 municipal vehicles, leveraging advanced technologies such as smart restrooms and AI systems[40] - The technical support and maintenance services business submitted 298 maintenance service contract bids, with a total bid amount of HKD 3.011 billion, and was awarded 53 projects with a total contract value of HKD 626 million[42] - The security and event services business submitted 43 contract bids, with a total bid amount of HKD 764 million, and was awarded 22 service contracts with a total contract value of HKD 374 million[43] - The insurance services business, New Domain, submitted 10 service contract bids with a total bid amount of HKD 23 million and was awarded 9 service contracts with a total contract value of HKD 20 million[45] - New Domain maintains a customer retention rate of over 90% for contract renewals, reflecting its competitiveness and high service standards[45] - Hui Kang's cleaning and pest control business secured 9 large service contracts, each with a net contract value of no less than HKD 20 million, including contracts for a museum, commercial complex, shopping mall, and educational institutions[41] - The technical support and maintenance services business secured 4 large projects, each with a net contract value of no less than HKD 20 million, including projects for a commercial building, hotel, and system upgrades[42] - The security and event services business secured 4 large service contracts, each with a net contract value of no less than HKD 20 million, including contracts for residential estates and a competition club[43] - New Domain successfully secured new clients, including a public transport company, listed companies, schools, and non-governmental organizations, following a black rainstorm warning in Hong Kong[45] - The company's environmental services division submitted 31 bids for environmental and horticultural service contracts, with a total bid amount of HKD 94 million, and was awarded 7 contracts totaling HKD 13 million[48] - The company's environmental services division also submitted 6 bids for building material sales quotations, with a total quotation amount of HKD 17 million, and was awarded 1 order totaling HKD 1 million[48] - As of December 31, 2023, the total contract value of the integrated living services segment was HKD 10.667 billion, with an outstanding contract value of HKD 6.638 billion[48] - The company's mechanical and electrical engineering services division submitted 93 bids for projects, with a total bid amount of HKD 9.881 billion, and was awarded 13 contracts totaling HKD 1.034 billion[51] - As of December 31, 2023, the total contract value of the mechanical and electrical engineering services segment was HKD 11.902 billion, with an outstanding contract value of HKD 5.542 billion[51] - The company's revenue increased by HKD 402.4 million or 10.8% to HKD 4.1145 billion compared to the same period last year, driven by growth in the integrated living services and mechanical and electrical engineering services segments[52] - The integrated living services segment revenue increased by 15.9% to HKD 2.1426 billion, while the mechanical and electrical engineering services segment revenue increased by 9.0% to HKD 1.6421 billion[53] - The property and facilities management services segment revenue decreased by 7.6% to HKD 3.298 billion[53] - Revenue from Hong Kong, Mainland China, and Macau accounted for 91.5%, 6.4%, and 2.1% of total revenue, respectively[53] - Property and facility management services revenue decreased by 7.6% or HKD 27 million to HKD 329.8 million, reflecting a reduction in temporary government building projects due to the pandemic[56] - Integrated living services revenue increased by 15.9% or HKD 293.2 million to HKD 2,142.6 million, driven by new contracts for general cleaning services and increased revenue from technical support and maintenance services[57] - Mechanical and electrical (M&E) engineering services revenue grew by 9.0% or HKD 136.2 million to HKD 1,642.1 million, primarily due to significant progress in multiple M&E installation projects[59] - Gross profit for the group decreased by 3.5% or HKD 18.6 million to HKD 516.4 million, with the overall gross margin dropping from 14.4% to 12.6%, mainly due to reduced temporary security and intensive cleaning services and increased labor costs[60] - Excluding government subsidies, the adjusted gross profit margin decreased from 13.8% to 12.4%, primarily due to reduced temporary security and cleaning services and higher labor costs[61] - Property and facility management services gross profit decreased by HKD 9 million to HKD 107.5 million, with the gross margin remaining stable at 32.6%[62] - Integrated living services gross profit decreased by HKD 18.4 million to HKD 227.2 million, with the gross margin dropping from 13.3% to 10.6%[62] - M&E engineering services gross profit increased by HKD 8.8 million to HKD 181.7 million, with the gross margin remaining stable at 11.1%[62] - General and administrative expenses increased by 5.1% or HKD 11.6 million to HKD 237.0 million, reflecting higher employee costs due to increased headcount and reduced government subsidies[63] - Excluding government subsidies, adjusted general and administrative expenses increased by 3.5% to HKD 238.0 million[64] - Net other income for the period was HKD 21.6 million, compared to HKD 19.2 million in the same period last year, primarily due to government grants in Hong Kong and gains from the sale of properties in mainland China[66] - The company's profit attributable to shareholders decreased by 8.6% or HKD 24.1 million to HKD 255.4 million, mainly due to reduced contributions from security and event services, insurance services, and environmental services, as well as decreased government grants and increased corporate financing costs[67] - Property and facilities management services contributed HKD 65.8 million, a decrease of 4.5% compared to the same period last year, while integrated living services contributed HKD 101.0 million, a decrease of 16.9%[68] - Financial income increased to HKD 10.9 million from HKD 3.4 million in the same period last year, driven by higher market interest rates and increased bank deposits[69] - The company's effective tax rate increased by 1.5% to 15.5%, primarily due to a reduction in tax-exempt government grants[69] - Adjusted net profit, excluding government grants, decreased by 1.5% to HKD 231.0 million compared to HKD 234.5 million in the same period last year[72] - The company's cash and bank balances decreased by HKD 239.3 million to HKD 512.6 million, with 91% denominated in HKD, 5% in RMB, and 4% in other currencies[74] - Total bank borrowings stood at HKD 277.3 million, with HKD 271.8 million denominated in HKD and HKD 5.5 million in RMB, both bearing floating interest rates[77] - The company's net debt ratio remained at 0%, with total bank financing available at HKD 29.088 billion, of which HKD 10.401 billion was utilized[75][76] - The net asset value of the company's mainland China business was HKD 131.9 million as of December 31, 2023, compared to HKD 128.7 million as of June 30, 2023[78] - A 4% fluctuation in the HKD/RMB exchange rate would result in a change of HKD 5.3 million in the company's other comprehensive income