Financial Performance - For the six months ended June 30, 2024, the company's revenue was approximately HKD 266.3 million, an increase of about HKD 198.7 million or approximately 294.0% compared to HKD 67.6 million for the same period in 2023[15] - The gross profit for the period was HKD 14.5 million, compared to a gross loss of HKD 5.3 million in the previous year, indicating a significant turnaround[15] - The profit attributable to the company's owners for the period was approximately HKD 5.3 million, a recovery from a loss of HKD 12.4 million in the same period last year[15] - The basic and diluted earnings per share for the period were 0.4 HK cents, compared to a loss of 0.9 HK cents per share in the previous year[18] - The total comprehensive income for the six months ended June 30, 2024, was HKD 5,254,000, compared to a loss of HKD 173,499,000 in the previous period[22] - Operating profit before tax for the six months ended June 30, 2024, was HKD 5,254,000, a significant improvement from a loss of HKD 12,409,000 in the same period last year[23] - Revenue from contracting services for the six months ended June 30, 2024, was HKD 266,253,000, a substantial increase from HKD 67,572,000 in the same period last year, representing a growth of approximately 294%[28] - For the six months ended June 30, 2024, the company reported a profit before tax of HKD 5,254,000, compared to a loss of HKD 12,409,000 for the same period in 2023, indicating a significant turnaround in performance[37] Assets and Liabilities - The company's non-current assets as of June 30, 2024, included interests in joint ventures amounting to HKD 516, with property, plant, and equipment valued at HKD 496[19] - Current assets totaled HKD 205.95 million, an increase from HKD 192.07 million as of December 31, 2023[19] - The company's total liabilities were HKD 205.64 million, compared to HKD 196.92 million at the end of the previous year[20] - The company reported a net asset value of HKD 309, a significant improvement from a net liability of HKD 4.85 million in the previous period[19] - Contract assets increased to HKD 82,285,000 as of June 30, 2024, up from HKD 49,043,000 at the end of 2023, representing a growth of about 68%[38] - Trade receivables, net of expected credit loss provisions, rose to HKD 78,176,000 in 2024 from HKD 65,522,000 in 2023, marking an increase of approximately 19%[39] - The company’s expected credit loss provision for trade receivables was HKD 6,132,000 as of June 30, 2024, compared to HKD 5,609,000 at the end of 2023[39] Cash Flow and Financing - Cash flow from operating activities showed a net outflow of HKD 46,443,000, compared to an outflow of HKD 28,884,000 in the previous year[23] - The net cash generated from investing activities was HKD 11,235,000, compared to HKD 4,000 in the previous year[24] - The financing activities resulted in a net cash inflow of HKD 20,063,000, a significant improvement from a net outflow of HKD 474,000 in the previous year[24] - The company reported a decrease in cash and cash equivalents of HKD 15,145,000, compared to a decrease of HKD 29,354,000 in the previous year[24] - The group's cash and cash equivalents decreased by approximately HKD 26.4 million to about HKD 32.2 million as of June 30, 2024, compared to HKD 58.6 million as of December 31, 2023[55] Employee and Administrative Costs - Total employee costs decreased to HKD 10,570,000 in 2024 from HKD 19,081,000 in 2023, reflecting a reduction of approximately 44%[7] - As of June 30, 2024, the group employed a total of 85 employees, an increase from 76 employees in 2023, with employee costs amounting to approximately HKD 10.6 million[64] - Administrative expenses decreased by approximately HKD 0.2 million or 2.6% to about HKD 7.6 million, primarily due to a reduction in legal and professional fees[52] Corporate Governance - The board emphasizes the importance of transparency and accountability in corporate governance practices[73] - The company has adopted and complied with the corporate governance code as per the listing rules[74] - The audit committee has been established to oversee the appointment and independence of external auditors and to review the integrity of the company's financial reports[85] - There were no significant events related to major acquisitions or disposals of subsidiaries and associates during the relevant period[61] - The company has not identified any instances of non-compliance with the trading regulations for directors during the relevant period[75] - There are no known conflicts of interest between the directors and the company's business during the relevant period[71] Dividends and Share Options - The board of directors did not recommend any interim dividend for the period[15] - The company did not declare any dividends for the six months ended June 30, 2024, consistent with the previous year[36] - The company did not recommend the payment of an interim dividend for the relevant period[76] - No share options have been granted or agreed to be granted under the share option scheme since its adoption on September 16, 2015, until June 30, 2024[77] - The maximum number of share options that can be granted under the plan and any other share option plans of the company shall not exceed 10% of the total issued shares, which is 133,200,000 shares[80] - The maximum number of share options granted to any individual participant within any 12-month period shall not exceed 1% of the total issued shares as of the grant date[81] - The exercise price for any specific share options granted under the plan must be at least the higher of the official closing price on the grant date or the average closing price over the five trading days preceding the grant date[82] - Share options can be exercised at any time within a period of 10 years from the date they are deemed granted[83] Strategic Outlook - The company continues to explore new strategies for market expansion and product development to sustain growth momentum[15] - The company plans to explore various opportunities and control costs to maintain strong performance in the coming years, as economic activities in Hong Kong gradually recover[49] - The group plans to continue consolidating its business in the construction industry while seeking business and investment opportunities to enhance long-term growth potential[60] - The company is considering partnerships for construction projects to achieve mutually beneficial outcomes[49]
丰展控股(01826) - 2024 - 中期财报