Financial Performance - Revenue from contracts with customers decreased to HK$384,121,000, down 10.5% from HK$429,140,000 in the same period of 2023[12]. - Operating profit fell to HK$24,689,000, a decline of 66.1% compared to HK$72,677,000 in 2023[12]. - Profit for the period was HK$5,313,000, down 90.3% from HK$54,869,000 in the previous year[12]. - Total comprehensive loss for the period was HK$3,190,000, compared to a total comprehensive income of HK$34,237,000 in the prior year[36]. - The Group's profit attributable to equity holders for the six-month period was HK$34,000, a significant decrease from HK$50,743,000 in 2023[72]. Revenue Breakdown - The security, insurance, and infrastructure business generated total revenue of HK$250,200,000 in the first half of 2024, accounting for approximately 65% of the Group's total revenue[14]. - Revenue from the healthcare business decreased to HK$6,144,000 in 2024 from HK$10,022,000 in 2023, resulting in a net loss of HK$118,000 compared to a net profit of HK$166,000 in the previous year[19]. - Revenue from Security, Insurance and Infrastructure Business (SII Business) was HK$250,200,000, while Aviation and Logistics Business (AL Business) generated HK$117,052,000, and Healthcare Business (HC Business) contributed HK$6,144,000, totaling HK$384,121,000 for the current period[59]. Cost and Expenses - Employee benefit expenses decreased to HK$166,547,000, down 18.3% from HK$203,808,000 in 2023[12]. - The cost of direct materials and job expenses rose to HK$96,420,000, an increase of 23.6% from HK$77,945,000 in 2023[12]. - Rental expenses decreased to HK$2,845,000 from HK$3,659,000 in 2023, while depreciation and amortization costs were HK$16,571,000, down from HK$18,822,000[68]. Cash Flow and Liquidity - The Group generated net cash inflows from operating activities of HK$12,923,000 for the period ending June 30, 2024, compared to HK$8,558,000 for the same period in 2023[29]. - Cash and cash equivalents at the end of the period reached HK$201,847,000, compared to HK$186,484,000 at the end of the same period in 2023, marking an increase of 8.2%[42]. - The company reported a net cash used in investing activities of HK$6,761,000, which is a significant increase from HK$1,917,000 in the previous year[41]. Assets and Liabilities - As of June 30, 2024, the Group recorded total assets of HK$1,024,336,000, a decrease from HK$1,056,457,000 as of December 31, 2023[28]. - The Group's total liabilities amounted to HK$526,419,000 as of June 30, 2024, down from HK$553,485,000 as of December 31, 2023[28]. - Net assets decreased to HK$497,917,000 as of June 30, 2024, down from HK$502,972,000 as of December 31, 2023, reflecting a decrease of approximately 1.1%[38]. Share Capital and Dividends - The Company issued convertible bonds with an aggregate principal amount of HK$210,000,000, convertible into 210,000,000 shares at a conversion price of HK$1.00 per share[29]. - No interim dividend was recommended for the six-month period ended June 30, 2024, consistent with the previous year[73]. - The recommendation of dividend payments is subject to the Board's discretion and will consider various factors including financial performance and working capital requirements[30]. Legal and Compliance - The Group is facing contingent liabilities totaling approximately US$5,800,000 (equivalent to approximately HK$45,500,000) related to indemnification demands from Aircraft Engine Leasing Finance Inc.[106]. - The Group's legal advisor is confident in the defense against indemnification demands, indicating a low probability of incurring losses[110]. - The Company has complied with the Corporate Governance Code throughout the six-month period ended June 30, 2024[166]. Employee Information - As of June 30, 2024, the Group employed a total of 2,386 employees, an increase from 1,998 employees as of June 30, 2023[171]. - The Group's key management personnel compensation for the six-month period was HK$7,979,000, a decrease from HK$10,008,000 in 2023[123]. - Employee remuneration is determined based on market salary levels, individual responsibilities, and Group performance, with additional benefits and discretionary bonuses offered[171]. Strategic Developments - The acquisition of the DeWe Group has solidified the Group's presence in the security sector, targeting more lucrative security projects in Hong Kong[24]. - The aviation division plans to expand its offerings to include a wider range of air charter and air ambulance services in 2024[26]. - The Group plans to closely monitor the logistics business and consider repositioning strategies to minimize losses[18].
先丰服务集团(00500) - 2024 - 中期财报