瑞港建设(06816) - 2024 - 中期业绩

Financial Statements Condensed Consolidated Statement of Comprehensive Income The Group's revenue declined significantly, leading to a wider net loss for the period ended June 30, 2024 Key Financial Performance | Metric | H1 2024 (HK$ '000) | H1 2023 (HK$ '000) | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | 508,954 | 874,322 | -41.8% | | Gross Profit | 35,357 | 48,202 | -26.6% | | Operating Loss | (20,462) | (11,717) | +74.6% | | Loss Before Income Tax | (62,396) | (43,127) | +44.7% | | Loss for the Period | (59,029) | (43,585) | +35.4% | | Loss Attributable to Owners | (53,588) | (49,349) | +8.6% | | Basic and Diluted Loss Per Share (HK cents) | (6.70) | (6.17) | +8.6% | Condensed Consolidated Statement of Financial Position Total assets and equity decreased as of June 30, 2024, while overall liability levels remained high Key Balance Sheet Items | Metric | Jun 30, 2024 (HK$ '000) | Dec 31, 2023 (HK$ '000) | Change | | :--- | :--- | :--- | :--- | | Total Assets | 4,694,338 | 5,035,604 | -6.8% | | Total Liabilities | 4,285,778 | 4,555,129 | -5.9% | | Total Equity | 408,560 | 480,475 | -15.0% | | Current Assets | 4,237,993 | 4,553,842 | -6.9% | | Current Liabilities | 3,751,226 | 4,343,305 | -13.6% | Notes to Financial Statements Note 1, 2, 4 - General Information and Basis of Preparation The Group operates in marine construction and related services, with unaudited interim financials prepared under HKAS 34 - The Group is principally engaged in providing marine construction services, marine-related ancillary services, and general building construction contracting services[5] - The unaudited condensed consolidated interim financial information for the six months ended June 30, 2024, has been prepared in accordance with HKAS 34[7] Note 3 - Financial Risk Management The Group is exposed to market, credit, and liquidity risks, with no significant changes in risk management policies - The Group's risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on financial performance[11] - There have been no changes in the risk management policies since the end of 2023[11] Note 5 - Revenue and Segment Information Total revenue fell 41.8% to HK$509 million, with declines across all business segments and key geographic regions Revenue by Business Segment | Business Segment | H1 2024 (HK$ '000) | H1 2023 (HK$ '000) | YoY Change | | :--- | :--- | :--- | :--- | | Marine construction works | 38,289 | 73,728 | -48.1% | | Marine-related ancillary services | 2,670 | 33,677 | -92.1% | | General building construction contracting services | 467,995 | 766,917 | -39.0% | | Total | 508,954 | 874,322 | -41.8% | Revenue by Geographical Location | Region | H1 2024 (HK$ '000) | H1 2023 (HK$ '000) | YoY Change | | :--- | :--- | :--- | :--- | | Hong Kong | 38,750 | 74,242 | -47.8% | | Mainland China | 467,995 | 766,917 | -39.0% | | The Philippines | – | 30,125 | -100% | | Indonesia | 2,208 | 3,038 | -27.3% | Note 6, 7, 8, 9 - Analysis of Key P&L Items The loss before tax widened due to a significant increase in net finance costs, despite lower staff costs - Net finance costs increased by 33.5% YoY to HK$41.93 million, mainly due to higher interest expenses on bank loans[24] - Other net income was HK$6.83 million, a turnaround from a loss of HK$2.34 million in the prior period, primarily driven by a foreign exchange gain of HK$5.54 million[23] - Staff costs, including directors' remuneration, decreased to HK$64.44 million from HK$88.29 million in the same period last year[22] Note 10, 11 - Dividends and Loss Per Share The Board did not recommend an interim dividend, and the basic and diluted loss per share widened to 6.70 HK cents - The Board of Directors does not recommend the payment of an interim dividend (H1 2023: Nil)[27] Loss Per Share | Metric | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Loss attributable to equity holders (HK$ '000) | (53,588) | (49,349) | | Basic loss per share (HK cents) | (6.70) | (6.17) | Note 12-17 - Analysis of Key Balance Sheet Items Trade receivables and payables both decreased, while total borrowings remained stable at HK$1.59 billion - Total trade receivables, retention receivables, and bills receivable decreased to HK$1.05 billion from HK$1.19 billion at year-end 2023[32] - Total trade payables, retention payables, and bills payable decreased significantly to HK$1.80 billion from HK$2.37 billion at year-end 2023[35] Borrowings Breakdown | Borrowing Classification | Jun 30, 2024 (HK$ '000) | Dec 31, 2023 (HK$ '000) | | :--- | :--- | :--- | | Non-current | 402,729 | 78,423 | | Current | 1,189,757 | 1,534,260 | | Total Borrowings | 1,592,486 | 1,612,683 | Note 18 - Related Party Transactions The Group has significant transactions with related parties, including large receivables from fellow subsidiaries - Revenue from construction projects with fellow subsidiaries constituted a significant portion of related party transactions during the period[46] - As of June 30, 2024, amounts due from fellow subsidiaries totaled HK$1.20 billion, which are trade in nature, unsecured, and interest-free[48] - Loans from an intermediate holding company totaled HK$146 million, which are non-trade in nature, interest-bearing, and secured[48][50] Management Discussion and Analysis Business Review and Outlook Business performance was impacted by a sluggish property market, with future focus on new markets and receivables collection - The general building business was affected by the sluggish property market, while the marine construction business deteriorated due to a lack of major new projects in Hong Kong and Macau[52] - Future strategy involves expanding into the general building markets of Guangdong and Hainan provinces and strengthening the collection of trade receivables and contract assets[53] - The Group has seven major projects in hand with a total contract balance exceeding HK$3 billion, expected to contribute additional revenue in the second half of 2024[54] Financial Review Revenue fell 41.8% to HK$509 million, and despite a slight gross margin improvement, the net loss widened - Revenue decreased by 41.8% to HK$509 million, mainly due to a HK$66.4 million decrease in the marine engineering segment and a HK$299 million decrease in the general building segment[55] - Gross profit margin slightly increased to 6.6% from 5.5% in the same period last year[56] - Other administrative expenses increased by HK$8.2 million, primarily due to higher maintenance and idle costs for vessels and machinery in the marine construction segment[59] - Due to a significant drop in gross profit and increases in administrative expenses and finance costs, the loss after tax for the period was HK$59.0 million, an increase of HK$15.4 million from the prior year's loss of HK$43.6 million[62] Liquidity and Capital Management The Group's net current assets increased and net debt decreased, but the gearing ratio rose to 425.5% Liquidity and Gearing | Metric | Jun 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Net Current Assets (HK$ million) | 486.8 | 210.5 | | Net Debt (HK$ million) | 1,401.1 | 1,553.1 | | Gearing Ratio | 425.5% | 366.0% | - The increase in the gearing ratio was due to the decrease in the Group's equity balance resulting from the loss incurred during the period[67] - As of June 30, 2024, the Group had 603 employees, a decrease from 660 at the end of 2023[69] Other Disclosures Contingent Liabilities and Litigation The Group has contingent liabilities from performance bonds and is involved in a lawsuit with a claim of HK$112 million - The Group had outstanding performance bonds given to customers for construction contracts amounting to HK$43.9 million[71] - Two subsidiaries are defendants in a lawsuit with a claim of HK$112 million; no provision has been made as the case is in its early stages and the outcome cannot be estimated[72] Corporate Governance and Others The company complied with corporate governance codes, did not declare a dividend, and had no major post-period events - The Board does not recommend the payment of a dividend for the period[77] - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities during the period[74] - The Audit Committee has reviewed the Group's unaudited condensed consolidated interim financial information[79]