Financial Performance - For the six months ended June 30, 2024, the revenue was approximately HKD 31,472,000, a decrease of about HKD 2,905,000 compared to the same period last year[2][4] - The group recorded a net profit of approximately HKD 159,000 for the period, a significant turnaround from a loss of HKD 16,022,000 in the same period last year[2][6] - For the six months ended June 30, 2024, the company's revenue decreased to HKD 31,472,000 from HKD 34,377,000 in the same period last year, representing a decline of approximately 8.7%[20] - Gross profit for the same period was HKD 8,699,000, slightly down from HKD 8,861,000, indicating a focus on cost control despite revenue decline[20] - The company reported a pre-tax loss of HKD 2,803,000, significantly improved from a loss of HKD 16,024,000 in the previous year[21] - The net profit for the period was HKD 159,000, a recovery from a loss of HKD 16,022,000 in the same period last year[22] - The company reported a pre-tax loss of HKD 2,962,000 for the six months ended June 30, 2024, compared to a loss of HKD 2,000 in the same period of 2023[51] - The company reported a profit attributable to equity holders of HKD 176,000 for the six months ended June 30, 2024, compared to a loss of HKD 15,562,000 in the same period of 2023[53] Revenue Breakdown - Revenue from shallow geothermal energy was HKD 30,617,000, while income from air energy/shallow geothermal heat pumps was HKD 635,000, showing a decline in the latter[4] - The revenue from construction services was HKD 30,617,000, while sales of industrial products contributed HKD 635,000, indicating a strong reliance on construction services for revenue generation[43] - The revenue from the shallow geothermal energy segment was HKD 30,617,000, with a profit of HKD 3,130,000 for the six months ended June 30, 2024[38] - The air energy/shallow geothermal heat pump segment generated revenue of HKD 28,977,000, with a profit of HKD 5,899,000 during the same period[38] - The group’s total revenue for the six months ended June 30, 2024, was HKD 34,377,000, compared to HKD 40,949,000 for the same period in 2023, indicating a decline[38] Expenses and Cost Management - Administrative expenses decreased by approximately HKD 6,932,000 or 29.9% compared to the same period last year, primarily due to reduced salaries 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 the previous year, reflecting improved cost management[49] - The company has implemented internal control management adjustments, leading to a significant decrease in expenses compared to the previous year[18] - The company’s financing costs totaled HKD 1,817,000 for the first half of 2024, down from HKD 2,052,000 in the same period of 2023, indicating a reduction in borrowing costs[48] Assets and Liabilities - As of June 30, 2024, the group had cash and cash equivalents of approximately HKD 53,110,000, down from HKD 69,553,000 as of December 31, 2023[7] - The group had a total contract value of approximately HKD 50,000,000 as of June 30, 2024, down from HKD 66,000,000 a year earlier[6] - As of June 30, 2024, total non-current assets decreased to HKD 414,799 thousand from HKD 426,412 thousand as of December 31, 2023, representing a decline of approximately 2.9%[23] - Current assets totaled HKD 746,643 thousand, down from HKD 778,487 thousand, indicating a decrease of about 4.1%[23] - Total current liabilities decreased to HKD 767,308 thousand from HKD 807,795 thousand, reflecting a reduction of approximately 5%[24] - Total liabilities decreased to HKD 884,957 thousand from HKD 926,309 thousand, a reduction of approximately 4.5%[24] - The company's equity attributable to owners was HKD 276,485 thousand, down from HKD 278,590 thousand, a decrease of about 0.4%[24] - The total assets of the company amounted to HKD 1,204,899,000, with total liabilities at HKD 926,309,000, resulting in a net asset position of HKD 278,590,000[41] Cash Flow and Financial Health - The net cash and cash equivalents decreased to HKD 53,110 thousand from HKD 69,553 thousand, a decline of about 23.6%[23] - The net cash generated from operating activities was negative at HKD (14,331) thousand compared to a positive HKD 14,981 thousand in the previous year[29] - The cash flow from investing activities was positive at HKD 937 thousand, compared to HKD 1,269 thousand in the previous year[29] - The company has established a special collection team to improve cash flow and recover outstanding accounts, which has shown noticeable results[18] Shareholder Information - As of June 30, 2024, the total number of issued shares is 4,526,925,163[66] - China Energy Conservation (Hong Kong) Investment Limited holds 1,190,000,000 shares, representing 26.29% of the total issued shares[68] - Ms. Lu Haiwen holds 982,800 shares directly and has a spouse interest of 722,170,600 shares, totaling 15.97%[68] - Mr. Wang Zhiyu has a spouse interest of 253,000,000 shares, accounting for 5.59%[68] - Mr. Wang Xinmeng has a spouse interest of 255,504,000 shares, representing 5.64%[68] - Universal Zone Limited, fully owned by Mr. Zhang Yiying, holds 250,000,000 shares, which is 5.52% of the total[68] Corporate Governance and Compliance - The company has established an audit committee to oversee financial reporting and risk management[73] - The company has complied with the GEM Listing Rules, except for certain deviations regarding attendance at shareholder meetings[75] - Zhang Wei was appointed as the executive director and member of the Group Development Strategy Committee on March 28, 2024, with a base salary of HKD 148,550 plus performance bonuses based on key performance indicators for the fiscal year 2024[78] - The company did not declare any interim dividends for the six months ended June 30, 2024, consistent with the previous year[52] Acquisitions and Investments - The company has agreed to acquire 80% of Hydrogen Energy Technology Limited for a maximum consideration of HKD 70,200,000[13] - The acquisition of Hydrogen Energy Technology Limited will enhance the company's financial data consolidation and operational capabilities[13] - There were no significant acquisitions or disposals during the reporting period[8] - The company did not make any significant acquisitions of property, plant, and equipment during the reporting period[54] - The company has no significant capital commitments as of the reporting date[59]
中国恒有源集团(08128) - 2024 - 中期财报