Financial Performance - Revenue decreased from approximately HKD 88.2 million for the six months ended June 30, 2023, to approximately HKD 84.8 million for the six months ended June 30, 2024, a decline of about 3.4 million or 3.8%[4] - Gross profit fell from approximately HKD 9.9 million to approximately HKD 5.9 million, a decrease of about HKD 4.1 million or 41.2%[4] - Gross margin decreased from approximately 11.3% to approximately 6.9% due to a slight increase in service costs despite the revenue decline[4] - Total comprehensive income decreased from approximately HKD 6.4 million to approximately HKD 1.7 million, a decline of about HKD 4.8 million or 74.0%[4] - Basic and diluted earnings per share were approximately HKD 0.42 for the six months ended June 30, 2024, compared to HKD 1.61 for the same period in 2023[5] - For the six months ended June 30, 2024, the company reported a pre-tax profit of HKD 21,845,000, a decrease of 33.3% compared to HKD 32,658,000 for the same period in 2023[23] - The company's total revenue from bank interest income and gains/losses from the sale of properties, plants, and equipment was HKD 814,000, down from HKD 2,387,000 in the previous year, representing a decline of 65.9%[21] - The company incurred administrative expenses of HKD 2,605,000, an increase from HKD 2,393,000 in the previous year, reflecting an increase of 8.8%[24] - The company's tax expense for the six months ended June 30, 2024, was HKD 421,000, a significant decrease from HKD 1,232,000 in the previous year, reflecting a reduction of 65.8%[27] Dividends - The company did not recommend the payment of an interim dividend for the six months ended June 30, 2024, compared to an interim dividend of HKD 0.025 per share for the same period in 2023[4] - The company proposed a special dividend of HKD 0.175 per ordinary share, totaling HKD 70,000,000, which was approved by shareholders[29] - The board proposed a special dividend of HKD 0.175 per ordinary share, totaling HKD 70 million, which was approved by shareholders[85] Assets and Liabilities - Total assets less current liabilities amounted to approximately HKD 76.5 million as of June 30, 2024, down from HKD 144.0 million as of December 31, 2023[8] - Current liabilities decreased from approximately HKD 160.2 million to approximately HKD 93.9 million[8] - The company's equity attributable to owners decreased from approximately HKD 143.1 million to approximately HKD 74.8 million[8] - The company reported a net cash position of approximately HKD 51.5 million as of June 30, 2024, compared to HKD 114.6 million as of December 31, 2023[8] - Cash and cash equivalents at the end of the period were HKD 51,516,000, down from HKD 121,577,000 at the end of June 2023[10] - Trade receivables as of June 30, 2024, were HKD 3,636,000, down from HKD 6,495,000 as of December 31, 2023, indicating a decrease of 44.5%[31] - Contract assets totaled HKD 31,827,000 as of June 30, 2024, a decrease from HKD 33,615,000 as of December 31, 2023, representing a decline of 5.3%[35] - Trade payables decreased slightly from HKD 20,066 thousand as of December 31, 2023, to HKD 19,701 thousand as of June 30, 2024, reflecting a reduction of approximately 1.8%[37] - Accrued expenses and other payables increased significantly from HKD 1,566 thousand to HKD 5,330 thousand, representing an increase of approximately 239%[37] Cash Flow - Operating cash flow for the six months ended June 30, 2024, was HKD 10,041,000, compared to HKD 2,575,000 for the same period in 2023, representing a significant increase[10] - Net cash used in investing activities was HKD 2,747,000 for the six months ended June 30, 2024, compared to HKD 2,134,000 in the same period of 2023[10] - Net cash used in financing activities was HKD 70,333,000 for the six months ended June 30, 2024, compared to HKD 30,499,000 in the same period of 2023[10] Contracts and Projects - The group secured 17 contracts with a total contract value of approximately HKD 814.0 million during the six months ended June 30, 2024[45] - As of June 30, 2024, there were 16 ongoing contracts with a total contract value of approximately HKD 810.9 million, and one contract valued at HKD 3.2 million was yet to commence[45] - The number of projects contributing to revenue dropped from 42 to 18, with a significant reduction in private projects from 31 to 7[48] - The group experienced a decrease in retention receivables due to a reduction in the number of ongoing and completed contracts during the year[36] Employment and Staff - As of June 30, 2024, the group employed 136 staff, an increase from 119 staff as of December 31, 2023[82] - The total employee cost (excluding directors' remuneration) for the six months ended June 30, 2024, was approximately HKD 20.1 million, down from HKD 31.1 million for the same period in 2023[82] Environmental and Compliance - The company has implemented various environmental protection measures to minimize its impact on the environment and natural resources[63] - The company has not faced any prosecutions, fines, or penalties for violations of applicable environmental laws or regulations as of the report date[63] - The company has not faced any foreign exchange risks during the six months ended June 30, 2024, and did not engage in foreign exchange hedging[62] - The audit committee, consisting of four members, has reviewed the interim financial statements and confirmed compliance with applicable accounting standards[84] Share Capital and Ownership - The company's issued share capital as of June 30, 2024, was HKD 4.0 million, divided into 400,000,000 shares with a par value of HKD 0.01 each[66] - The company’s major shareholders, Mr. Xie and Mr. He, each hold a 75% interest in 300,000,000 shares through Junfeng[65] - The company did not purchase, sell, or redeem any shares during the six months ending June 30, 2024[70] - The total number of shares that may be issued under the share option plan is capped at 10% of the total shares issued at the time of listing, which amounts to 40,000,000 shares[75] - The maximum number of shares that can be issued to each participant under the share option plan is limited to 1% of the company's issued share capital at that time within any 12-month period[76] - The share options granted under the plan must be exercised within a period not exceeding 10 years from the date of grant[77] Future Outlook - The company is adjusting its bidding strategy due to a shortage of construction-related professionals, with an estimated shortfall of 17,500 to 24,000 workers expected to increase to 48,500 to 55,000 by 2027[45] - The Hong Kong government plans to allocate HKD 1.1 billion for landslide prevention and mitigation in the fiscal year 2024/25, an increase from HKD 1 billion in 2023/24[45] - The company has no plans for significant investments or capital assets in the future[63] - No significant events affecting the group have occurred since the end of the reporting period on June 30, 2024[86]
丰城控股(02295) - 2024 - 中期财报