Financial Performance - For the six months ended June 30, 2024, the company reported revenue of HKD 78,296,000, an increase of 11.5% compared to HKD 70,069,000 for the same period in 2023[4] - Gross profit for the same period was HKD 12,998,000, up 62.2% from HKD 8,029,000 year-on-year[4] - The company achieved a net profit of HKD 2,315,000, compared to a net loss of HKD 1,311,000 in the previous year[4] - Basic and diluted earnings per share for the period were HKD 1.43, compared to a loss of HKD 0.81 per share in the previous year[4] - The overall comprehensive income for the period was HKD 2,315,000, compared to a comprehensive loss of HKD (1,311,000) in the previous year[9] - Revenue from construction contracts for the six months ended June 30, 2024, was HKD 78,296,000, up from HKD 70,069,000 in the same period of 2023, representing an increase of approximately 11.5%[14] - Revenue from Hong Kong customers was HKD 77,020,000, compared to HKD 56,985,000 in the previous year, indicating a growth of approximately 35.3%[15] - Major customer A contributed HKD 61,543,000 to total revenue, while customer B contributed HKD 14,221,000, down from HKD 54,445,000 in the previous year[16] - Basic earnings per share improved to HKD 1.43 from HKD 0.81, reflecting a growth of 76.57%[24] - The company reported a net profit attributable to shareholders of HKD 2,315,000 for the six months ended June 30, 2024, compared to a loss of HKD 1,311,000 in the same period last year[21] Assets and Liabilities - Total assets as of June 30, 2024, were HKD 123,906,000, a decrease from HKD 130,799,000 at the end of 2023[5] - Total liabilities decreased to HKD 55,930,000 from HKD 65,136,000 in the previous year[5] - The company's net asset value increased to HKD 67,976,000 from HKD 65,663,000 year-on-year[7] - The company reported a decrease in bank borrowings to HKD 21,851,000 from HKD 27,335,000 year-on-year[5] - The total cash and cash equivalents at the end of the reporting period decreased to HKD (5,163,000) from HKD (1,745,000) in the prior year[8] - Cash and cash equivalents decreased to HKD 2,780,000 from HKD 6,014,000, a decline of 53.76%[28] - The company's interest-bearing debt decreased from approximately HKD 27.3 million to HKD 21.9 million during the reporting period[44] - The capital debt ratio decreased from approximately 43.2% to 33.1%, primarily due to reduced interest-bearing debt and increased retained earnings[44] Cash Flow - The net cash generated from operating activities for the six months ended June 30, 2024, was HKD 676,000, compared to a net cash used of HKD (2,561,000) in the same period of 2023[8] - The net cash generated from investing activities increased to HKD 1,992,000 from HKD (85,000) year-on-year[8] - The net cash used in financing activities was HKD (3,869,000), a significant increase from HKD (1,588,000) in the previous year[8] Expenses - Administrative expenses for the period were HKD 8,423,000, slightly up from HKD 8,338,000 in the previous year[4] - Total income tax expense increased to HKD 1,266,000 from HKD 121,000, a significant rise of 950.41%[19] - Employee costs, including director remuneration, amounted to approximately HKD 8.9 million for the period, compared to HKD 10.3 million for the six months ended June 30, 2023[53] Corporate Governance and Management - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM Listing Rules, with no known violations during the relevant period[64] - The board emphasizes the importance of good corporate governance for long-term success and is committed to maintaining high standards and transparency to protect stakeholders' interests[65] - The audit committee, composed of three independent non-executive directors, has reviewed the unaudited consolidated results, confirming compliance with applicable accounting standards and GEM Listing Rules[69] - The chairman and CEO roles are currently held by the same individual, which the board believes is in the best interest of the company for effective management and business development[66] Risks and Future Plans - Major risks identified include potential adverse impacts from pandemics, reliance on major customers, and the risk of cost overruns affecting financial performance[70] - The company’s operations depend on successful bidding, and failure to secure contracts may adversely affect revenue continuity and financial performance[70] - The company plans to continue exploring market expansion opportunities and new product development strategies[4] - The company plans to explore new revenue sources and optimize resource utilization to maximize shareholder returns in the future[43] Other Information - The company does not recommend any dividend payment for the six months ended June 30, 2024, consistent with the previous year[22] - There are no significant contingent liabilities disclosed as of June 30, 2024, apart from those noted in the unaudited condensed consolidated financial statements[50] - The group has not engaged in any purchases, sales, or redemptions of its listed securities during the relevant period[63] - There have been no significant events occurring after June 30, 2024, up to the date of this report[56] - The group has not entered into any derivative agreements or incurred any financial instruments to hedge foreign exchange risks, which are considered minimal[51] - The company has established a risk management process to monitor the effectiveness of internal controls[68]
荣丰集团亚洲(08526) - 2024 - 中期业绩