Revenue Performance - The Group recorded total revenue of approximately HK$50.9 million for the six months ended June 30, 2024, a decrease of approximately HK$80.5 million or 61.3% from approximately HK$131.4 million for the same period in 2023[6]. - Revenue from Hong Kong projects was approximately HK$43.5 million for the Period 2024, representing a decrease of approximately 62.7% compared to approximately HK$116.7 million for the Period 2023[7]. - The Group's revenue decreased by approximately 61.3% from HK$131.4 million in the Period 2023 to approximately HK$50.9 million in the Period 2024, primarily due to the ongoing downturn in the Hong Kong construction market[14]. - Revenue for the six months ended June 30, 2024, was HK$50,889,000, a decrease of 61.3% compared to HK$131,442,000 in the same period of 2023[94]. - Revenue from public properties was HK$39,903,000, significantly down from HK$120,089,000 in 2023, representing a decline of 66.8%[94]. - Revenue from hotels and casinos decreased to HK$5,502,000 from HK$9,864,000, a drop of 44.5%[94]. - Revenue from residential properties increased to HK$2,069,000 from HK$258,000, showing a substantial growth of 703.5%[94]. - Revenue from commercial properties rose to HK$3,348,000 from HK$1,231,000, an increase of 172.5%[94]. - The Group's revenue from Macau was HK$7,376,000, down from HK$14,735,000, a decrease of 50.0%[98]. - Revenue from Hong Kong was HK$43,513,000, down from HK$116,707,000, a decline of 62.7%[98]. Financial Position - The Group maintains a strong net cash position with limited bank borrowing, indicating a sound financial position despite the revenue decline[10]. - As of June 30, 2024, the Group had cash and cash equivalents of approximately HK$43.0 million, an increase from approximately HK$35.9 million as of December 31, 2023[31][35]. - The working capital of the Group as of June 30, 2024, was approximately HK$176.7 million, down from approximately HK$183.4 million as of December 31, 2023[31][35]. - The net asset value of the Group as of June 30, 2024, was approximately HK$201.7 million, compared to approximately HK$209.1 million as of December 31, 2023[31][35]. - The gearing ratio as of June 30, 2024, was approximately 20.2%, a decrease from approximately 24.3% as of December 31, 2023[31][35]. - The Group's liquidity may be adversely affected if progress payments or retention money are not received on time, necessitating regular reviews of aging analysis and communication with customers[44]. - The Group's total issued and fully paid share capital remained at HK$20,000,000 as of June 30, 2024, unchanged since January 1, 2023[127]. Profitability and Loss - The Group's profitability has worsened for the Period 2024 due to the decline in revenue and market conditions[10]. - The Group reported a net loss of approximately HK$7.5 million for the Period 2024, compared to a net profit of approximately HK$4.5 million for the Period 2023, resulting in a basic loss per share of approximately HK$0.37 cents[29][33]. - Gross profit for the same period was HK$2,005,000, down 85.4% from HK$13,766,000 in 2023[78]. - Loss before taxation for the six months ended June 30, 2024, was HK$7,466,000, compared to a profit of HK$5,352,000 in 2023[78]. - Total comprehensive loss attributable to the owners of the Company for the period was HK$7,438,000, compared to a profit of HK$4,492,000 in 2023[78]. - Basic loss per share for the period was HK$0.37, compared to earnings of HK$0.22 per share in 2023[78]. Cost Management - The Group's cost of sales for the Period 2024 was HK$48.9 million, representing a decrease of approximately 58.5% from HK$117.7 million in the Period 2023[14]. - Administrative expenses decreased to approximately HK$10.5 million for the Period 2024 from approximately HK$11.7 million for the Period 2023, primarily due to a reduction in staff costs[25]. - The remuneration of directors and key management members during the current interim period amounted to HK$1,529,000, a decrease of 15.4% compared to HK$1,808,000 for the six months ended 30 June 2023[16]. Market Conditions and Future Outlook - The decrease in revenue was primarily due to sluggishness in the construction markets of Hong Kong and Macau, influenced by slow economic recovery and elevated borrowing costs[6]. - The Directors expect a challenging business environment in the coming years due to the continued weak property market sentiment in Macau and Hong Kong[8]. - The Group plans to diversify its revenue streams by expanding into the trading of construction materials in the near future[8]. - The Group's management expects the gross profit margin to remain low in the future due to the construction market downturn, but is actively seeking projects with higher gross profit margins[16][20]. - Management is cautious about the Group's financial performance in the second half of 2024 but believes improvements will be made[50]. Operational Developments - Advanced building technologies, including Building Information Modeling, are being adopted for project management and construction efficiency[8]. - The Group continues to develop its E&M maintenance department, focusing on periodic inspection and regular maintenance for hotels and residential properties[7]. - The overall economic uncertainties and sluggish construction markets have led to a need for the Group to prudently assess and evaluate the E&M markets in Macau and Hong Kong[8]. - The Group operates in a single segment focused on electrical and mechanical engineering services in Macau and Hong Kong[93]. Credit and Receivables - As of June 30, 2024, the Group recognized cumulative credit loss allowances on contract assets and trade receivables of approximately HK$23.3 million and HK$5.2 million, respectively[19]. - The reversal of impairment loss under the expected credit loss model was approximately HK$160,000 in the Period 2024, compared to approximately HK$3.2 million in the Period 2023[24]. - The expected credit loss model resulted in a reversal of impairment losses of approximately HK$3.2 million for the Period 2023 and approximately HK$160,000 for the Period 2024, attributed to improved aging of trade receivables[26]. - Trade receivables as of June 30, 2024, amounted to HK$21,078,000, down from HK$26,157,000 as of December 31, 2023, representing a decrease of about 19.4%[112]. - The allowance for credit losses on trade receivables was HK$5,151,000 as of June 30, 2024, slightly increased from HK$5,123,000 as of December 31, 2023[112]. Compliance and Governance - The company has complied with the Corporate Governance Code, except for a deviation from code provision C.2.1 due to the temporary dual role of the chairman and CEO[64][65]. - The Board is in the process of nominating a suitable candidate for the CEO position following the resignation of Mr. Woo Chu Fai[65]. - All directors have confirmed compliance with the Model Code for Securities Transactions throughout the reporting period[67]. - There were no material breaches of applicable laws and regulations during the period 2024[52].
澳达控股(09929) - 2024 - 中期财报