Financial Performance - Revenue decreased from approximately HKD 88.2 million for the six months ended June 30, 2023, to approximately HKD 84.8 million for the six months ended June 30, 2024, a decline of about 3.4 million HKD or 3.8%[1] - Gross profit fell from approximately HKD 9.9 million to approximately HKD 5.9 million, a decrease of about 4.1 million HKD or 41.2%[1] - Gross margin decreased from approximately 11.3% to approximately 6.9% due to reduced revenue and slightly increased service costs[1] - Profit and total comprehensive income decreased from approximately HKD 6.4 million to approximately HKD 1.7 million, a decline of about 4.8 million HKD or 74.0%[2] - Basic and diluted earnings per share were approximately HKD 0.42, down from HKD 1.61 for the previous period[2] - Total revenue for the group for the six months ended June 30, 2024, was HKD 84,794,000, compared to HKD 88,173,000 for the same period in 2023, reflecting a decrease of 3.2%[13] - The group reported a basic earnings per share of HKD 4.18 for the six months ended June 30, 2024, compared to HKD 16.09 for the same period in 2023, a decrease of 74.0%[19] - Profit and total comprehensive income decreased by approximately HKD 4.8 million or 74.0% to about HKD 1.7 million for the six months ending June 30, 2024[48] Assets and Liabilities - Total assets decreased from HKD 160.2 million as of December 31, 2023, to HKD 93.9 million as of June 30, 2024[4] - Cash and bank balances decreased significantly from HKD 114.6 million to HKD 51.5 million[4] - Net current assets decreased from HKD 137.2 million to HKD 67.1 million[4] - The company’s equity attributable to owners decreased from HKD 143.1 million to HKD 74.8 million[4] - As of June 30, 2024, the group recorded net current assets of approximately HKD 67.1 million, down from HKD 137.2 million as of December 31, 2023[49] - The current ratio as of June 30, 2024, was approximately 3.5 times, down from about 7.0 times as of December 31, 2023[49] Cash Flow - Operating cash flow for the six months ended June 30, 2024, was HKD 10,041 million, a significant increase from HKD 2,575 million in the same period of 2023, representing a growth of 288%[6] - The company reported a decrease in cash flow from investing activities, with a net cash outflow of HKD 2,747 million compared to a net inflow of HKD 2,134 million in the previous year[6] - Cash and cash equivalents at the end of June 30, 2024, were HKD 51,516 million, down from HKD 121,577 million at the end of June 30, 2023, indicating a decrease of 57.6%[6] - The company experienced a significant reduction in trade and other receivables, decreasing by HKD 21,367 million, which positively impacted operating cash flow[6] Dividends - The company does not recommend the payment of an interim dividend for the six months ended June 30, 2024, compared to a dividend of HKD 0.025 per share for the previous period[2] - The board proposed a special dividend of HKD 0.175 per ordinary share, totaling HKD 70 million, which was approved by shareholders on February 2, 2024[76] Revenue Sources - Revenue from public projects for the six months ended June 30, 2024, was HKD 79,271,000, an increase from HKD 74,461,000 in the same period of 2023, representing a growth of 2.4%[13] - Revenue from private projects decreased significantly to HKD 5,523,000 for the six months ended June 30, 2024, down from HKD 13,712,000 in the same period of 2023, a decline of 59.7%[13] - The number of projects contributing to revenue dropped from 42 to 18, with a significant reduction in private projects[40] Employee and Management Costs - The total remuneration for directors and senior management for the six months ended June 30, 2024, was 3,168,000 HKD, an increase from 2,484,000 HKD for the same period in 2023[33] - Total employee costs (excluding director remuneration) for the six months ended June 30, 2024, were approximately HKD 20.1 million, down from HKD 31.1 million for the same period in 2023[73] - As of June 30, 2024, the group had 136 employees, an increase from 119 employees as of December 31, 2023[73] Corporate Governance - The company has adopted the principles and code provisions of the corporate governance code as its corporate governance framework since its listing[74] - The audit committee, consisting of four members, has reviewed the unaudited condensed consolidated interim financial statements and confirmed compliance with applicable accounting standards[75] - The board emphasizes the importance of sound corporate governance to protect shareholder interests and enhance corporate value[74] - The company has maintained compliance with all applicable corporate governance code provisions as of the announcement date[75] Environmental Compliance - The company has implemented various environmental protection measures to minimize its impact on air pollution and noise[57] - The company has not faced any penalties or prosecutions for violating applicable environmental laws or regulations as of the announcement date[57] - The company recognizes the importance of environmental protection and is committed to compliance with all applicable laws and regulations in Hong Kong[57] - The company has sufficient environmental protection measures in place to ensure compliance with relevant laws[57] Contracts and Future Outlook - The group secured 17 contracts with a total contract value of approximately HKD 814.0 million for the six months ending June 30, 2024[37] - As of June 30, 2024, the group has 16 ongoing contracts with a total contract value of approximately HKD 810.9 million, excluding one contract valued at HKD 3.2 million that has not yet commenced[37] - The group is facing a labor shortage, with an estimated shortfall of 17,500 to 24,000 workers and professionals in the construction industry[38] - The group maintains a cautious outlook for the remaining period of 2024 due to ongoing challenges in the labor market[39]
丰城控股(02295) - 2024 - 中期业绩