创建集团控股(01609) - 2024 - 中期业绩

Financial Summary Core Financial Data For the six months ended September 30, 2023, the Group's revenue decreased by 10.0% to HK$221.5 million, with profit for the period significantly declining by 53.9% to HK$7.511 million Condensed Consolidated Statement of Profit or Loss (For the Six Months Ended September 30) | Indicator | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 221,523 | 245,974 | -10.0% | | Gross Profit | 26,191 | 34,863 | -24.9% | | Profit Before Tax | 10,064 | 21,517 | -53.2% | | Profit for the Period | 7,511 | 16,294 | -53.9% | | Basic Earnings Per Share (HK cents) | 0.76 | 1.49 | -49.0% | Condensed Consolidated Statement of Financial Position (As at End of Reporting Period) | Indicator | As at September 30, 2023 (HK$ Thousand) | As at March 31, 2023 (HK$ Thousand) | Period Change | | :--- | :--- | :--- | :--- | | Total Assets | 794,270 | 736,218 | +7.9% | | Total Liabilities | 182,359 | 132,059 | +38.1% | | Net Assets | 611,911 | 604,159 | +1.3% | - The Board resolved not to declare any interim dividend for the six months ended September 30, 2023[145][105] Segment Business Performance The Group operates in two segments: concrete pouring and loan financing, with concrete pouring being the primary revenue source, both segments experienced declines in revenue and segment profit during the reporting period - The Group's operating and reportable segments are: (i) provision of concrete pouring services and other ancillary services in Hong Kong; and (ii) provision of loan financing in Hong Kong[75][42] Segment Revenue and Results (For the Six Months Ended September 30) | Segment | Item | 2023 (HK$ Thousand) | 2022 (HK$ Thousand) | Year-on-Year Change | | :--- | :--- | :--- | :--- | :--- | | Concrete Pouring | Revenue from External Customers | 218,377 | 242,220 | -9.8% | | | Segment Profit | 20,042 | 28,125 | -28.7% | | Loan Financing | Revenue from External Customers | 3,146 | 3,754 | -16.2% | | | Segment Profit | 3,146 | 3,754 | -16.2% | Management Discussion and Analysis Business Review During the reporting period, the Group continued its concrete pouring and loan financing operations, adopting a streamlined, asset-light strategy for concrete pouring to enhance profitability, securing 30 construction projects with a total contract value of approximately HK$1.4 billion - The Group adopted a more asset-light strategy for its concrete pouring business, adjusting manpower and renting machinery based on project progress to operate in a streamlined manner[114] - As of September 30, 2023, the Group had been awarded 30 construction projects with a total contract value of approximately HK$1.4 billion, with an additional 2 projects valued at approximately HK$16.2 million awarded after the reporting period[96] - Looking ahead, management remains confident in the development of Hong Kong's construction industry and will continue to focus on construction projects to maintain profitability[145] Financial Review During the reporting period, the Group's overall financial performance declined, with total revenue decreasing by 10.0% to HK$221.5 million, gross margin falling from 14.2% to 11.8%, and administrative expenses increasing significantly by 73.9%, resulting in a substantial reduction in net profit to HK$7.5 million Revenue Analysis Total revenue for the reporting period was approximately HK$221.5 million, a 10.0% year-on-year decrease, primarily due to a 9.8% reduction in concrete pouring services revenue to HK$218.4 million, driven by fewer new projects - Total revenue for the reporting period decreased by 10.0% to approximately HK$221.5 million from HK$246.0 million in the previous period[116] - Revenue from concrete pouring services was approximately HK$218.4 million, a 9.8% year-on-year decrease, primarily due to a reduction in the value and number of new projects[98] Gross Profit and Gross Margin The Group's overall gross profit decreased from HK$34.9 million to HK$26.2 million, with the gross margin declining from 14.2% to 11.8% Gross Profit and Gross Margin Changes | Indicator | Reporting Period | Previous Period | | :--- | :--- | :--- | | Gross Profit | Approx. HK$26.2 million | Approx. HK$34.9 million | | Gross Margin | Approx. 11.8% | 14.2% | Expenses and Profitability Administrative and other operating expenses surged by 73.9% to HK$16 million due to increased legal and professional fees, while impairment losses on financial assets significantly decreased by 97.8%, leading to a substantial decline in net profit for the period from HK$16.3 million to HK$7.5 million - Administrative and other operating expenses increased by 73.9% to approximately HK$16 million, primarily due to an increase of approximately HK$6 million in legal and professional fees, and entertainment and travel expenses[100] - Impairment losses on financial assets significantly decreased by 97.8% from HK$9.3 million in the previous period to approximately HK$0.2 million[101] - Net profit for the period was approximately HK$7.5 million, a significant decrease from HK$16.3 million in the previous period[144] Liquidity and Capital Resources The Group relies primarily on internal cash flow and shareholder contributions for operations, with cash and cash equivalents significantly decreasing to approximately HK$60.1 million at period-end, maintaining a very low gearing ratio of 0.4% with no bank borrowings or pledged assets - As of September 30, 2023, the Group's cash and cash equivalents were approximately HK$60.1 million, a significant decrease from HK$203.5 million as of March 31, 2023[120] - As of September 30, 2023, the Group had no borrowings, and its gearing ratio was 0.4%[104][6] - As at the end of the reporting period, the Group had no pledged assets[122] Listing Status and Significant Matters The company's shares have been suspended from trading on the Stock Exchange since May 13, 2022, due to a reverse takeover ruling, and to meet resumption guidance, the company announced a new significant acquisition of 59% equity in Guangzhou Xiangjing Cemetery, which also constitutes a reverse takeover requiring a new listing application - The company's shares have been suspended from trading on the Stock Exchange since May 13, 2022[153][132] - The Stock Exchange Listing Committee ruled that the company's previous series of acquisitions and disposals constituted a reverse takeover (RTO) under the Listing Rules[12][13][154] - To satisfy the resumption guidance, the company entered into an agreement on November 21, 2023, to acquire 59% equity in Guangzhou Xiangjing Cemetery, which constitutes a very substantial acquisition, connected transaction, and reverse takeover, requiring the company to be treated as a new listing applicant[131][156][94] - During the reporting period, the company, through a repurchase offer, exchanged and cancelled approximately 120 million of its shares for shares in its wholly-owned subsidiary, Guoyao Holdings, resulting in Guoyao ceasing to be a subsidiary of the company[71][160] Corporate Governance Compliance Status The company is committed to maintaining high corporate governance standards, complying with applicable provisions of the Corporate Governance Code during the reporting period, except for code provision A.2.1, and all directors confirmed compliance with the standard code for securities transactions - Except for code provision A.2.1, the company has complied with the applicable code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules during the reporting period[18] - All Directors have confirmed full compliance with the standard code for securities transactions by Directors during the reporting period[170] - During the reporting period, neither the company nor any of its subsidiaries repurchased, redeemed, or sold any of the company's listed securities[161] Audit Committee The company has established an Audit Committee comprising three independent non-executive directors, responsible for reviewing financial reporting, risk management, and internal controls, and this period's interim financial results, though unaudited by external auditors, were reviewed and approved by the committee - The Audit Committee is composed of three independent non-executive directors and is responsible for reviewing financial reporting, risk management, and internal controls[140] - The Group's interim financial results were unaudited but have been reviewed and approved by the Audit Committee[164][19]