Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 3,446,519 thousand, an increase of 12.1% compared to HKD 3,074,000 thousand in 2023[1] - Gross profit for the same period was HKD 372,519 thousand, up from HKD 248,595 thousand, reflecting a significant improvement in profitability[1] - The company reported a profit before tax of HKD 46,861 thousand, compared to a loss of HKD 40,608 thousand in the previous year[1] - Net profit for the period was HKD 35,594 thousand, a turnaround from a loss of HKD 48,604 thousand in 2023[1] - Basic and diluted earnings per share were HKD 3.6 cents, compared to a loss of HKD 10.0 cents per share in the prior year[1] - The company reported a total comprehensive income of HKD 31,538 thousand for the period, compared to a loss of HKD 54,129 thousand in the previous year[2] - Total revenue for the six months ended June 30, 2024, reached HKD 3,446,519,000, a significant increase from HKD 2,538,838,000 in the same period last year, representing a growth of approximately 35.8%[13] - Revenue from construction services amounted to HKD 3,125,482,000, up from HKD 2,284,723,000 year-over-year, indicating a growth of about 37%[13] Assets and Liabilities - Total assets as of June 30, 2024, amounted to HKD 4,660,696 thousand, an increase from HKD 4,295,521 thousand at the end of 2023[3] - Current liabilities totaled HKD 3,501,930 thousand, up from HKD 3,146,506 thousand at the end of 2023, indicating increased operational activity[3] - The company's net asset value was HKD 2,294,217 thousand, slightly up from HKD 2,292,851 thousand at the end of 2023[4] - Non-current liabilities decreased to HKD 129,021 thousand from HKD 133,937 thousand, reflecting improved financial management[4] - The total assets of the company as of June 30, 2024, were HKD 5,925,168,000, an increase from HKD 5,573,294,000 as of December 31, 2023[9][12] - The total liabilities stood at HKD 3,630,951,000 as of June 30, 2024, compared to HKD 3,280,443,000 at the end of December 2023, reflecting an increase of approximately 10.7%[9][12] - The company’s total liabilities increased by approximately 10.7% from HKD 3,280,443,000 to HKD 3,630,951,000 over the last six months[9][12] Operational Highlights - The company plans to continue expanding its market presence and investing in new technologies to enhance its service offerings and operational efficiency[8] - The company has a stable order book with 20 ongoing projects valued at approximately HKD 4,145,000,000 and 41 projects from its subsidiary valued at HKD 877,000,000 as of June 30, 2024[34] - The company is focusing on enhancing workplace safety and reducing work-related accidents as part of its operational strategy[33] - The group is exploring new innovative technologies such as zero-carbon, robotics, digitalization, and urban air mobility to diversify its operations[49] Employee and Expenses - The company’s employee benefit expenses, including directors' remuneration, rose to HKD 572,189,000 in 2024 from HKD 510,605,000 in 2023[18] - Total financial expenses increased to HKD 27,559,000 in 2024 from HKD 14,750,000 in 2023, primarily due to higher interest on bank loans and overdrafts[17] Dividends and Governance - The company did not declare an interim dividend for the six months ended June 30, 2024, consistent with the previous year[22] - The company has adopted the standard code of conduct for securities trading as per Appendix C3 of the listing rules, confirming compliance by all directors for the six-month period ending June 30, 2024[51] - The company believes it has complied with all relevant provisions of the corporate governance code, except for provision B.2.2, which requires directors to retire at least once every three years[52] - At each annual general meeting, one-third of the directors must retire, but the chairman and/or managing director are exempt from this requirement to ensure consistent leadership[53] - The audit committee has held regular meetings since its establishment, with at least two meetings annually to review and supervise the financial reporting process and internal controls[54] Challenges and Market Conditions - The group is facing challenges in the Hong Kong economy, particularly in the real estate sector, which remains weak with declining rental prices[48] - The group anticipates a potential decrease in borrowing costs due to expected interest rate cuts by the US Federal Reserve, which may provide relief to various sectors of the Hong Kong economy[48]
建联集团(00385) - 2024 - 中期业绩