Financial Performance - Revenue for the six months ended June 30, 2024, was HKD 461,249,000, a decrease of 5.0% compared to HKD 485,442,000 for the same period in 2023[2] - Gross profit for the same period was HKD 23,402,000, down 12.8% from HKD 26,783,000 in 2023[2] - The net profit attributable to owners of the company was HKD 6,852,000, a decrease of 11.2% from HKD 7,715,000 in the previous year[2] - The group reported a profit before tax of HKD 7,953,000 for the six months ended June 30, 2024, compared to HKD 9,016,000 for the same period in 2023, indicating a decrease of approximately 11.8%[12][13] - The net profit attributable to shareholders for the six months ended June 30, 2024, was HKD 6,852,000, down from HKD 7,715,000 for the same period in 2023, representing a decrease of approximately 11.2%[21] - Net profit after tax decreased by approximately 11.1% to HKD 6.9 million from HKD 7.7 million in the prior year, impacted by reduced gross profit and losses from the sale of a subsidiary[37] Cash Flow and Assets - Cash and cash equivalents at the end of the period increased to HKD 84,218,000 from HKD 72,277,000 at the end of 2023[3] - Total assets decreased to HKD 171,903,000 from HKD 150,619,000 at the end of 2023[3] - Total assets as of June 30, 2024, amounted to HKD 219,749,000, with significant contributions from cash and bank balances of HKD 84,218,000 and other receivables of HKD 33,886,000[14] - Total assets as of June 30, 2024, amounted to HKD 330,318,000, a decrease from HKD 330,318,000 as of December 31, 2023[15] - The group's current assets net value was approximately HKD 117.0 million as of June 30, 2024, an increase from HKD 61.8 million as of December 31, 2023[39] Liabilities and Equity - The group’s liabilities totaled HKD 69,906,000, with bank and other borrowings accounting for HKD 21,560,000 and lease liabilities at HKD 21,703,000[14] - Total liabilities as of June 30, 2024, were HKD 229,039,000, compared to HKD 229,039,000 as of December 31, 2023[16] - The company’s total equity increased to HKD 149,843,000 from HKD 101,279,000 at the end of 2023[3] - The group's equity attributable to owners was approximately HKD 149.8 million as of June 30, 2024, up from HKD 101.3 million as of December 31, 2023[40] Operational Highlights - Total revenue for the six months ended June 30, 2024, was HKD 461,249,000, with a breakdown of HKD 399,232,000 from cleaning services, HKD 12,794,000 from pest management, HKD 49,074,000 from waste management and recycling, and HKD 149,000 from gardening services[12] - The group’s segment performance showed cleaning services generated a profit of HKD 22,935,000, while pest management services contributed HKD 43,000, waste management and recycling services contributed HKD 414,000, and gardening services contributed HKD 10,000[12] - The group has entered the online gaming industry, signing its first licensing agreement in April 2024, with expected revenue generation by the end of the fiscal year 2025[38] Expenses and Costs - The group’s administrative expenses for the six months ended June 30, 2024, were HKD 19,517,000, compared to HKD 17,707,000 for the same period in 2023, reflecting an increase of approximately 10.3%[12][13] - The total employee costs for the six months ended June 30, 2024, were HKD 359,827,000, a decrease of 8.4% from HKD 392,914,000 in the previous year[18] - Financing costs rose by approximately 63.6% from HKD 2.2 million to HKD 3.6 million, representing about 0.4% and 0.8% of revenue for the respective periods[37] Shareholder and Corporate Governance - The company issued 72 million new shares through a rights issue, raising approximately HKD 43.2 million, with a net amount of about HKD 41.7 million[35] - As of June 30, 2024, major shareholders include Mr. Tam Wai Tong with 23,920,000 shares (24.92%), Yongxin Global Investment Limited with 12,702,000 shares (13.23%), and Mr. Ho Hong Yu with 12,434,000 shares (12.95%) [53] - The company has adopted a code of conduct for directors' securities transactions, adhering to the standards set by GEM Listing Rules [54] - The Audit Committee, established on June 24, 2017, includes three independent non-executive directors and is responsible for reviewing financial reports and internal control systems [57] - The Remuneration Committee, also established on June 24, 2017, is tasked with recommending remuneration policies for all directors and senior management [58] - The Nomination Committee, formed on June 24, 2017, provides recommendations on the appointment of directors and succession planning [59] - The company has complied with all applicable corporate governance codes during the reporting period [55] Miscellaneous - The company did not declare any interim dividends for the current or previous periods[20] - The company has not applied any new accounting standards that would significantly impact its financial performance or position[10] - The group has not reported any inter-segment revenue during the relevant period, indicating a focus on external service provision[13] - The group does not face significant foreign exchange risks as most transactions are denominated in HKD[42] - There were no purchases, redemptions, or sales of the company's listed securities by the company or any of its subsidiaries during the reporting period[52] - The company has not engaged in any competitive business activities that could conflict with its operations during the reporting period[51]
立高控股(08472) - 2024 - 中期财报