Revenue Performance - Total revenue for construction and engineering services for the six months ended June 30, 2024, was approximately HK$24.6 million, a decrease of approximately 58.1% compared to HK$58.8 million for the same period in 2023[31]. - The Group's total revenue decreased by approximately HK$30.2 million or approximately 47.9% from approximately HK$63.0 million for the six months ended 30 June 2023 to approximately HK$32.8 million for the six months ended 30 June 2024[48]. - Revenue from construction and engineering services decreased by approximately HK$34.2 million or approximately 58.1% from approximately HK$58.8 million for the six months ended 30 June 2023 to approximately HK$24.6 million for the six months ended 30 June 2024[48]. - Revenue from property-related services increased by approximately HK$0.5 million from approximately HK$4.2 million for the six months ended 30 June 2023 to approximately HK$4.7 million for the six months ended 30 June 2024[48]. - The Group recorded revenue of approximately HK$3.5 million from luxury product sales for the six months ended 30 June 2024, accounting for approximately 10.6% of the Group's total revenue for the same period[48]. - For the six months ended June 30, 2024, the reportable segment revenue from external customers was HK$32,790,000, with contributions of HK$24,642,000 from construction and engineering services, HK$4,662,000 from property-related services, and HK$3,486,000 from sales of luxury products[113]. Market Conditions and Strategy - Approximately 80.6% of total revenue in the construction and engineering segment came from public sector projects, down from 97.6% in the same period of 2023[31]. - The Group faced increased competition, leading to a reduction in new contracts awarded during the period[31]. - Geotech Engineering continued to submit tenders cautiously to maintain a reasonable gross profit margin while remaining competitive[34]. - The strategy included focusing on project management and collaborating with subcontractors to undertake more construction projects[34]. - The Group is seeking to diversify into other types of civil engineering works by tendering projects jointly with partners[34]. - The Group's operational initiatives aim to adapt to the competitive market landscape in Hong Kong[34]. - The Group aims to expand its market presence by diversifying its product offerings and collaborating with various suppliers while maintaining a prudent business approach[39]. - The Group will adopt a cautious approach in developing its construction and decoration business in Cambodia, considering market circumstances[42]. - The property-related services market in Hong Kong is expected to remain challenging due to economic uncertainties, prompting the Group to seek various opportunities in this sector[42]. - The Group aims to seek other business opportunities related to material services due to the uncertainty in the Hong Kong economic environment[45]. - The Group's strategy includes expanding into luxury product sales to enhance revenue diversification and mitigate risks associated with its traditional segments[106]. Financial Performance - The Group's total gross profit for the six months ended June 30, 2024, was approximately HK$2.4 million, representing an increase of approximately 112.3% compared to approximately HK$1.1 million for the same period in 2023[51]. - The total gross profit margin for the six months ended June 30, 2024, was approximately 7.3%, compared to approximately 1.8% for the six months ended June 30, 2023[51]. - Gross profit from construction and engineering services for the six months ended June 30, 2024, amounted to approximately HK$0.1 million, a decrease of approximately 41.5% compared to approximately HK$0.2 million for the same period in 2023[51]. - Gross profit from property-related services for the six months ended June 30, 2024, was approximately HK$1.8 million, an increase of approximately HK$0.9 million compared to approximately HK$0.9 million for the same period in 2023[51]. - The profit margin for property-related services for the six months ended June 30, 2024, was approximately 39.6%, compared to approximately 21.7% for the same period in 2023[51]. - The net loss for the six months ended 30 June 2024 was approximately HK$8.1 million, compared to a net loss of approximately HK$6.5 million for the same period in 2023, representing an increase in the net loss margin from approximately 10.3% to 24.8%[57]. - The total loss for the period was HK$8.13 million, compared to a loss of HK$6.52 million in the same period last year, reflecting an increase in loss of approximately 24.7%[68]. Operational Metrics - As of June 30, 2024, the Group had 47 construction contracts on hand with a total outstanding contract sum of approximately HK$160.0 million, down from approximately HK$179.1 million as of December 31, 2023[35]. - The Group had no borrowings as of June 30, 2024, maintaining a gearing ratio of approximately 0.6%, down from approximately 0.8% as of December 31, 2023[58]. - Total staff costs for the six months ended 30 June 2024 amounted to approximately HK$13.4 million, a decrease from approximately HK$15.0 million for the same period in 2023[60]. - The Group's payroll included 58 full-time employees as of June 30, 2024, down from 65 full-time employees as of December 31, 2023[60]. - The Group's lease liabilities as of June 30, 2024, were approximately HK$1.0 million, compared to approximately HK$1.4 million as of December 31, 2023[57]. - The company generated net cash used in operating activities of HK$16,791 for the six months ended June 30, 2024, compared to HK$18,163 in the prior year[88]. Assets and Liabilities - As of June 30, 2024, total assets amounted to HK$186,655, a decrease of 8.7% from HK$204,519 as of December 31, 2023[70]. - Net current assets were HK$164,002, down from HK$171,457, reflecting a decline of 4.3%[70]. - Total equity as of June 30, 2024, was HK$168,824, down from HK$176,930 as of December 31, 2023, indicating a decrease of 4.6%[70]. - The reserves account showed a balance of HK$152,024, down from HK$160,130 as of December 31, 2023, reflecting a decrease of 5.0%[86]. - Trade receivables amounted to HK$2,560,000, a decrease from HK$9,595,000 as of December 31, 2023[177]. - Retention receivables decreased from HK$12,559,000 as of December 31, 2023, to HK$10,871,000 as of June 30, 2024[179]. - Other receivables increased from HK$21,074,000 as of December 31, 2023, to HK$24,654,000 as of June 30, 2024[179]. Risk Management - The Group will continue to monitor market risks and uncertainties, taking strict measures to mitigate potential adverse impacts[43]. - The Group will continue to adopt a cautious approach to inventory management of luxury goods to reduce costs amid economic uncertainties[45]. - The Group's management conducted an impairment assessment on amounts due from joint operators, recognizing an allowance of approximately HK$16,372,000[181]. - The company continues to operate primarily in Hong Kong, with no segment analysis by geographical location presented in the report[126].
致浩达控股(01707) - 2024 - 中期财报