Financial Performance - For the six months ended June 30, 2024, the company's revenue was approximately HKD 31,472,000, a decrease of about HKD 2,905,000 compared to HKD 34,377,000 in the same period last year[2][4] - The group recorded a net profit of approximately HKD 159,000 for the review period, a significant improvement from a loss of HKD 16,022,000 in the previous year[2][5] - The company reported a revenue of HKD 31,472,000 for the six months ended June 30, 2024, a decrease from HKD 34,377,000 in the same period last year, representing a decline of approximately 8.8%[16] - Gross profit for the same period was HKD 8,699,000, slightly down from HKD 8,861,000, indicating a stable gross margin despite the revenue decline[16] - The company achieved a net profit of HKD 159,000 for the six months ended June 30, 2024, a significant recovery from a net loss of HKD 16,022,000 in the previous year[16] - The profit before tax for the group was a loss of HKD 2,803,000, compared to a loss of HKD 16,024,000 in the previous year, indicating an improvement in performance[26] - The company reported a total comprehensive loss of HKD 1,787,000 for the six months ended June 30, 2024, compared to a loss of HKD 20,465,000 in the same period last year[17] Revenue Breakdown - Revenue from shallow geothermal energy was HKD 30,617,000, up from HKD 28,977,000 year-on-year, while revenue from air energy/shallow geothermal heat pumps decreased to HKD 635,000 from HKD 1,000,000[4] - For the six months ended June 30, 2024, total revenue from external customers was HKD 31,472,000, a decrease of 8.8% compared to HKD 34,377,000 for the same period in 2023[26] - The shallow geothermal energy segment generated revenue of HKD 30,617,000, while the air source/geothermal heat pump segment contributed HKD 1,000,000[26] - The group’s total segment revenue for the six months ended June 30, 2024, was HKD 33,747,000, compared to HKD 34,876,000 in the same period of 2023[26] Expenses and Cost Management - Selling and distribution expenses decreased to approximately HKD 5,048,000 from HKD 6,237,000, attributed to further salary reforms and cost control measures[5] - Administrative expenses decreased by approximately HKD 6,932,000 or 29.9% compared to the previous year, mainly due to reduced salary and related costs[5] - The cost of goods sold for the six months ended June 30, 2024, was HKD 9,782,000, a decrease from HKD 10,335,000 in 2023, representing a decline of about 5.3%[35] - The cost of services provided for the six months ended June 30, 2024, was HKD 12,981,000, down from HKD 15,185,000 in 2023, indicating a reduction of approximately 14.5%[35] - Employee benefits expenses, including salaries for directors and key management personnel, were HKD 12,400,000 for the six months ended June 30, 2024, a decrease from HKD 17,710,000 in 2023, reflecting a decline of about 30%[35] Assets and Liabilities - As of June 30, 2024, total non-current assets amounted to HKD 414,799,000, a decrease from HKD 426,412,000 as of December 31, 2023[18] - Current assets totaled HKD 746,643,000 as of June 30, 2024, down from HKD 778,487,000 at the end of the previous year[18] - The total assets less current liabilities stood at HKD 394,134 thousand as of June 30, 2024, slightly down from HKD 397,104 thousand at the end of 2023[19] - The company's total liabilities decreased from HKD 926,309 thousand in December 2023 to HKD 884,957 thousand as of June 30, 2024, indicating a reduction of approximately 4.5%[19] - The total amount of trade payables and notes payable as of June 30, 2024, was HKD 145,654,000, down from HKD 157,241,000 as of December 31, 2023[44] Staffing and Organizational Changes - The group employed approximately 198 staff members as of June 30, 2024, a decrease from about 218 employees at the end of 2023[12] - The company established a special collection team to recover overdue payments, which has shown noticeable results, particularly in recovering significant overdue project payments[15] - The company is focusing on internal control management and has adjusted employee performance evaluation systems, resulting in a significant reduction in expenses compared to the previous year[15] - The company is actively adapting to the new normal driven by innovation and dual carbon goals, restructuring its internal organization to enhance management efficiency[15] Shareholder Information - As of June 30, 2024, the total number of issued shares of the company is 4,526,925,163[50] - Mr. Xu Shengheng holds 722,170,600 shares, representing approximately 15.97% of the total issued shares[50] - China Energy Conservation and Environmental Protection (Hong Kong) Investment Co., Ltd. owns 1,190,000,000 shares, accounting for 26.29% of the total issued shares[53] - Mr. Wang Zhiyu's spouse holds 253,000,000 shares, which is 5.59% of the total issued shares[53] Corporate Governance - The audit committee has been established to review and supervise the group's financial reporting procedures, risk management, and internal control systems[60] - The company has complied with all provisions of the GEM Corporate Governance Code, except for the absence of a non-executive director at the annual general meeting[62] - No securities trading code of conduct has been adopted for directors, and no non-compliance with GEM Listing Rules was reported during the review period[61]
中国恒有源集团(08128) - 2024 - 中期业绩