Financial Performance - The revenue for the six months ended June 30, 2024, was approximately HK$404,683,000, representing a decrease of approximately 22.2% compared to HK$520,216,000 for the same period in 2023[7]. - The gross profit for the same period was approximately HK$55,843,000, with a gross profit margin of approximately 13.8%, an increase from 11.2% in 2023[8]. - Profit attributable to owners of the Company decreased by approximately 43.3% to HK$4,272,000 for the six months ended June 30, 2024, down from HK$7,528,000 in 2023[16]. - Excluding a non-recurring subsidy of approximately HK$2,295,000 in 2023, the adjusted profit for that period would be approximately HK$5,233,000, indicating an 18.4% decrease in profit for 2024[17]. - The profit attributable to owners for the six months ended June 30, 2024, was approximately HK$4,272,000, representing a decrease of about 43.3% from HK$7,528,000 in 2023[19]. - The company reported a profit and total comprehensive income for the period attributable to owners of HK$4,272,000, down from HK$7,528,000, a decrease of about 43%[69]. - Basic earnings per share for the six months ended June 30, 2024, was HK$0.53, down from HK$0.94 for the same period in 2023, representing a decrease of 43.6%[129]. Revenue Breakdown - For the six months ended June 30, 2024, the Group's revenue from fitting-out services was HK$403,075,000, a decrease of 22.4% compared to HK$519,311,000 in the same period of 2023[113]. - Revenue from repair and maintenance services increased to HK$1,608,000, up 77.5% from HK$905,000 in the prior year[113]. - Total revenue for the six months ended June 30, 2024, was HK$404,683,000, compared to HK$520,216,000 for the same period in 2023, reflecting a decline of 22.1%[113]. Expenses and Costs - Finance costs increased by approximately 13.0%, amounting to HK$17,451,000 for the six months ended June 30, 2024, compared to HK$15,443,000 in 2023[16]. - The increase in gross profit margin was attributed to improved cost control and project management during the review period[12]. - Employee benefit expenses for the six months ended June 30, 2024, amounted to approximately HK$52,229,000, a decrease from approximately HK$58,599,000 for the same period in 2023[36]. - The Group's profit for the period was impacted by subcontracting fees of HK$251,826,000, which increased from HK$236,571,000 in the previous year[124]. Financial Position - The Group's total debts, including bank borrowings and lease liabilities, were approximately HK$470,773,000 as of June 30, 2024, compared to approximately HK$444,341,000 as of December 31, 2023[27]. - The gearing ratio of the Group was approximately 66.4% as of June 30, 2024, slightly down from approximately 66.5% as of December 31, 2023[33]. - The current ratio of the Group was approximately 1.1 as of June 30, 2024, compared to approximately 1.2 as of December 31, 2023[33]. - Current liabilities increased to HK$769,475,000 from HK$668,957,000, an increase of about 15%[74]. Cash Flow - For the six months ended June 30, 2024, net cash generated from operating activities was HK$19,596,000, compared to HK$2,987,000 in the same period of 2023, representing a significant increase[79]. - The net cash used in investing activities was HK$9,105,000 for the first half of 2024, a decrease from HK$14,641,000 in the prior year, indicating improved cash management[79]. - Net cash generated from financing activities was HK$4,981,000, down from HK$12,986,000 in the previous year, reflecting changes in financing strategies[79]. - The total cash and cash equivalents at the end of the period increased to HK$57,863,000 from HK$51,795,000 year-over-year, showing a positive liquidity position[79]. - The company reported a net increase in cash and cash equivalents of HK$15,472,000 for the six months ended June 30, 2024, compared to HK$1,332,000 in the same period of 2023, highlighting strong cash flow performance[79]. Corporate Governance - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2024[50]. - All existing Directors confirmed compliance with the Model Code for Securities Transactions throughout the six months ended June 30, 2024[50]. - The Group complied with the Corporate Governance Code provisions applicable for the six months ended June 30, 2024[51]. - The interim condensed consolidated financial information was approved by the Board on 28 August 2024, ensuring timely reporting and governance[162]. Shareholder Information - As of June 30, 2024, Mr. Ng and Ms. Zhao each hold a long position of 600,000,000 shares, representing 75% of the issued share capital of Space Plus Investment Company Limited[54]. - The total number of shares available for issue under the Share Option Scheme is 76,000,000, which represents 9.5% of the issued shares[62]. - No options granted under the Share Option Scheme remained outstanding as of June 30, 2024[62]. - Space Plus is identified as a substantial shareholder with a beneficial ownership of 600,000,000 shares, representing a long position[59]. Future Outlook - The Group anticipates a challenging second half of 2024 due to high interest rates, inflation, and talent shortages, but expects long-term stability in the fitting-out industry in Hong Kong[26]. - The Group plans to continue developing and applying its technologies and technical solutions in a diversified manner to unlock new business opportunities[24]. - The Group will closely monitor its working capital management and adjust its business strategies as necessary[25].
德合集团(00368) - 2024 - 中期财报