建成控股(01630) - 2024 - 年度业绩

Financial Performance Summary This section provides a concise overview of the company's key financial results and position for the reporting period Consolidated Statement of Profit or Loss and Other Comprehensive Income In FY2024, Jiantao Holdings Limited reported a net loss of HKD 43.81 million, a reversal from the prior year's profit of HKD 11.89 million, despite a 162% revenue increase to HKD 1.24 billion, primarily due to lower gross margin, absence of government subsidies, and investment losses, resulting in a basic loss per share of 2.92 HK cents Key Financial Highlights | Indicator | 2024 | 2023 | | :--- | :--- | :--- | | Revenue | 1,244,556 Thousand HKD | 474,768 Thousand HKD | | Gross Profit | 31,620 Thousand HKD | 15,266 Thousand HKD | | (Loss) / Profit for the Year | (43,810) Thousand HKD | 11,887 Thousand HKD | | Basic (Loss) / Earnings Per Share | (2.92) HK cents | 0.79 HK cents | Consolidated Statement of Financial Position As of March 31, 2024, the Group's total assets and liabilities increased, leading to a decrease in net assets from HKD 166 million to HKD 122 million, while cash and cash equivalents saw an increase Key Financial Position Highlights | Indicator | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Total Assets | 483,879 Thousand HKD | 425,960 Thousand HKD | | Total Liabilities | 361,578 Thousand HKD | 259,849 Thousand HKD | | Net Assets | 122,301 Thousand HKD | 166,111 Thousand HKD | | Cash and Cash Equivalents | 169,308 Thousand HKD | 150,451 Thousand HKD | Management Discussion and Analysis This section provides an in-depth review of the Group's operations, financial performance, and future outlook Business Overview The Group's core business involves providing formwork engineering services in Hong Kong, with minor involvement in building construction and financial instrument investments, primarily deriving revenue from private sector projects, which accounted for 70.8% of total revenue this year - The Group primarily engages in providing formwork engineering, utilizing both traditional timber formwork and metal formwork systems[13][54][73] Revenue by Sector | Revenue Source (by Sector) | Revenue (Thousand HKD) | Percentage of Total Revenue | | :--- | :--- | :--- | | Private Sector Projects | 881,617 | 70.8% | | Public Sector Projects | 362,939 | 29.2% | Financial Review This fiscal year saw a shift from profit to loss, driven by increased revenue from large contracts reaching peak construction, but pressured gross margins due to market competition and rising costs, compounded by the absence of prior-year government wage subsidies and a net loss from investment activities Revenue Revenue increased by 162.2% year-on-year to HKD 1.24 billion, primarily due to several large contracts awarded in early 2023 reaching their peak construction phase this year, with the number of projects contributing over HKD 50 million in revenue increasing from 4 last year to 9 this year - The increase in FY2024 revenue is mainly due to several large tenders awarded to the Group in early 2023, which are currently in their peak construction phase[57] Project Scale by Number of Projects | Project Scale by Recognized Revenue | Number of Projects in 2024 | Number of Projects in 2023 | | :--- | :--- | :--- | | Over 100,000,001 HKD | 3 | 2 | | 50,000,001 to 100,000,000 HKD | 6 | 2 | | 10,000,001 to 50,000,000 HKD | 6 | 5 | Gross Profit and Gross Margin Gross profit increased by 107.1% year-on-year to HKD 31.62 million, but the gross margin slightly decreased from 3.2% in the prior year to 2.5%, remaining low primarily due to increased subcontractor wages from limited supply of experienced workers, additional costs from site arrangement changes, and intense market competition - Gross profit increased in absolute terms, but the gross margin decreased from 3.2% to 2.5%, pressured by increased subcontractor wages, additional costs, and intense market competition[59][78] Other (Losses) / Income, Net Other income items shifted from a net income of HKD 20.62 million in the prior year to a net loss of HKD 9.37 million this year, a decrease of 145.5%, primarily due to the absence of prior-year government wage subsidies and a net loss recorded in the trading and investment business segment - Other income turned from profit to loss, mainly due to the absence of approximately HKD 16.6 million in government wage subsidies from the prior year and unrealized losses recorded on trading securities[79] Loss Attributable to Equity Holders of the Company The year recorded a loss attributable to equity holders of HKD 43.81 million, compared to a profit of HKD 11.89 million last year, primarily due to the absence of government wage subsidies, the shift of investment business from profit to loss, and the recognition of significant impairment losses under the expected credit loss model - The shift from profit to loss is mainly due to: (i) the absence of approximately HKD 16.6 million in government wage subsidies received last year; (ii) a net loss of approximately HKD 13.8 million recorded in the trading and investment business segment; and (iii) the provision for impairment losses under the expected credit loss model of approximately HKD 40.7 million[88] Outlook The company anticipates the formwork engineering industry will continue to face challenges including intensified market competition, uncertain costs for experienced labor and subcontracting fees, and will respond by expanding project types and client base to mitigate risks, while adopting prudent capital management and liquidity risk management strategies - The company anticipates future market challenges including intensified competition and cost uncertainties, and will address these by expanding its client base and project scope, while maintaining prudent capital management[75][81] Liquidity and Financial Resources The Group's financial position remains robust, holding approximately HKD 169 million in cash and cash equivalents as of March 31, 2024, with no bank borrowings, however, the gearing ratio significantly increased from 91.1% in the prior year to approximately 125.4% Key Liquidity and Financial Resources | Indicator | March 31, 2024 | March 31, 2023 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 169,308 Thousand HKD | 150,451 Thousand HKD | | Bank Borrowings | 0 | 0 | | Gearing Ratio | 125.4% | 91.1% | Significant Investments The Group holds shares in several Hong Kong-listed companies as financial assets at fair value through profit or loss, with a total market value of approximately HKD 50.6 million as of March 31, 2024, and recorded a fair value change loss of approximately HKD 16.66 million for the year Fair Value of Investments | Investment Name | Fair Value as of March 31, 2024 (Thousand HKD) | Annual Fair Value Change (Thousand HKD) | | :--- | :--- | :--- | | Hong Kong Exchanges and Clearing Limited | 22,780 | (12,040) | | China Construction Bank Corporation | 4,720 | (370) | | China Mobile Limited | 5,018 | 248 | | BOC Hong Kong (Holdings) Limited | 6,285 | (1,050) | | Ping An Insurance (Group) Company of China, Ltd | 4,958 | (2,707) | Principal Risks and Uncertainties The Group faces key risks including reliance on non-recurring project revenue, inaccurate project cost estimations, significant fluctuations in construction material costs, potential construction litigation disputes, and adverse impacts on liquidity from delayed progress payments or retention money recovery - Revenue primarily derives from non-recurring projects, with no guarantee of continuously securing new business or contracts[103] - Significant increases in construction material costs or non-conforming materials could adversely affect financial performance[104] - Failure to receive progress payments or retention money on time or in full could adversely impact the Group's liquidity position[105] Notes to the Financial Statements This section details the accounting policies applied and provides supplementary information to the financial statements Accounting Policies This year, the Group adopted several new and revised Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants, and an assessment concluded that their adoption had no significant impact on the Group's financial position and performance for the current and prior years - The application of new and revised Hong Kong Financial Reporting Standards this year had no significant impact on the Group's financial position and performance and/or disclosures in the consolidated financial statements for the current and prior years[14][31] - The Directors expect that the application of all new and revised Hong Kong Financial Reporting Standards issued but not yet effective will not have a significant impact on the consolidated financial statements in the foreseeable future[15] Segment Information The Group's business is segmented into three operating divisions based on service type: formwork engineering, building construction, and trading and investment business, with formwork engineering being the sole revenue source and largest asset segment, though it recorded an operating loss of HKD 22.9 million this year, and the trading and investment business segment also recorded a loss of HKD 10.95 million Segment Revenue and (Loss) / Profit | Segment | Revenue (Thousand HKD) | Segment (Loss) / Profit (Thousand HKD) | | :--- | :--- | :--- | | 2024 | | | | Formwork Engineering | 1,244,556 | (22,901) | | Building Construction | – | (10) | | Trading and Investment Business | – | (10,950) | | 2023 | | | | Formwork Engineering | 474,768 | 19,072 | | Building Construction | – | (8) | | Trading and Investment Business | – | 3,023 | Segment Assets | Segment Assets (Thousand HKD) | 2024 | 2023 | | :--- | :--- | :--- | | Formwork Engineering | 263,815 | 208,097 | | Building Construction | – | – | | Trading and Investment Business | 114,424 | 129,336 | Basic (Loss) / Earnings Per Share The basic loss per share for the year was 2.92 HK cents, calculated based on the loss attributable to owners of the Company of HKD 43.81 million and a weighted average of 1.5 billion ordinary shares, with no diluted loss per share presented as there were no potential ordinary shares outstanding during the reporting period Calculation of Basic (Loss) / Earnings Per Share | Item | 2024 | 2023 | | :--- | :--- | :--- | | (Loss) / Profit Attributable to Owners of the Company (Thousand HKD) | (43,810) | 11,887 | | Weighted Average Number of Ordinary Shares (Thousand Shares) | 1,500,000 | 1,500,000 | - Diluted (loss) / earnings per share is not presented as there were no potential ordinary shares outstanding in either year[48] Dividends The Board of Directors does not recommend the payment of a final dividend for the year ended March 31, 2024, consistent with the previous year - No dividends were paid or proposed to ordinary shareholders of the Company for the year ended March 31, 2024 (2023: Nil)[69][112] Other Information This section covers additional disclosures including legal proceedings and corporate governance practices Litigation and Claims A subsidiary of the Group is involved in a legal dispute with a supplier, where the Group claims approximately HKD 20.72 million for additional costs due to delayed material delivery, while the supplier counter-sues for breach of exclusive terms and outstanding payments of approximately HKD 9.8 million, with the case entering mediation but its outcome remaining uncertain due to its early stage - A Group subsidiary claims approximately HKD 20.72 million in additional costs from a supplier due to delayed material delivery[121] - The supplier counter-sues the Group for failure to settle approximately HKD 9.8 million in outstanding bills and has filed a writ, with the case proceeding to mediation and its outcome remaining uncertain[121] Corporate Governance The company has adopted and complied with the Corporate Governance Code under the Hong Kong Listing Rules, and all directors confirmed compliance with the Model Code for Securities Transactions by Directors during the reporting year, with the Audit Committee having reviewed the annual financial statements and related accounting principles - The company has adopted the Corporate Governance Code set out in Appendix C1 of the Listing Rules, which is reviewed and monitored by the Board from time to time[114] - Following inquiry, the company confirmed that all Directors have complied with the Model Code for Securities Transactions by Directors for the year ended March 31, 2024[148] - The Audit Committee has reviewed the Group's accounting principles, policies, and the consolidated financial statements for the year ended March 31, 2024, with management[143]