Financial Performance - The company reported unaudited consolidated revenue of HKD 271.7 million for the six months ended September 30, 2024, a decrease of 16.4% compared to HKD 325.1 million for the same period in 2023[3]. - Gross profit for the period was HKD 20.2 million, with a gross margin of 7.4%, down from HKD 31.5 million and 9.7% in the previous period, attributed to intense industry competition[3]. - The company's net profit attributable to shareholders increased by 51.1% to HKD 6.8 million, despite a 16.4% decrease in revenue and a 35.9% drop in gross profit[4]. - Basic and diluted earnings per share for the period were HKD 1.64, an increase of 50.5% from HKD 1.09 in the same period last year[5]. - The company reported a profit attributable to shareholders of HKD 6,751,000 for the six months ended September 30, 2024, compared to HKD 4,507,000 for the same period in 2023, representing a 49.8% increase[22]. - Basic and diluted earnings per share for the six months ended September 30, 2024, were HKD 0.0164, compared to HKD 0.0109 for the same period in 2023, reflecting a 50.5% increase[22]. Dividends and Share Repurchase - The board declared an interim dividend of HKD 0.5 per share, down from HKD 0.8 per share for the same period last year[6]. - The company repurchased a total of 1,360,000 shares during the six months ending September 30, 2024, at a total cost of approximately HKD 594,000, excluding transaction costs[48]. - The company has canceled 1,276,000 shares repurchased during the period, with the remaining 84,000 shares scheduled for cancellation in October 2024[48]. Assets and Liabilities - Total assets less current liabilities amounted to HKD 573.5 million as of September 30, 2024, compared to HKD 573.1 million as of March 31, 2024[9]. - Current assets decreased to HKD 440.5 million from HKD 428.8 million, with inventories dropping significantly from HKD 42.5 million to HKD 15.5 million[9]. - The company recorded a net cash position of HKD 194 million as of September 30, 2024, slightly up from HKD 193.3 million at the end of the previous fiscal year[9]. - Accounts receivable as of September 30, 2024, totaled HKD 132,095,000, an increase from HKD 89,788,000 as of March 31, 2024, representing a rise of approximately 47.00%[28]. - Accounts payable as of September 30, 2024, amounted to HKD 3,950,000, slightly down from HKD 4,098,000 as of March 31, 2024, reflecting a decrease of about 3.62%[29]. - The group's net current asset value as of September 30, 2024, was HKD 356.5 million, with a current ratio of 5.2 times[38]. - The group has no outstanding bank loans as of September 30, 2024, maintaining a net cash position[38]. Revenue Breakdown - Revenue from Hong Kong was HKD 260,210,000, down 19.9% from HKD 324,559,000 in the previous year, while revenue from Mainland China increased significantly to HKD 11,466,000 from HKD 527[17]. - Revenue from new construction projects for the six months ended September 30, 2024, was HKD 227,964,000, down 17.4% from HKD 275,884,000 in the previous year[14]. - Maintenance and other services revenue increased to HKD 8,513,000 from HKD 4,590,000, indicating a growth of 85.5%[14]. - Other income increased to HKD 5.1 million from HKD 3.8 million in the previous period, indicating a positive trend in ancillary revenue streams[8]. Economic and Market Conditions - The Hong Kong economy grew at a rate of 1.8% in the third quarter of 2024, down from 3.2% in the second quarter, primarily due to reduced private consumption and increased service imports[33]. - The unemployment rate in Hong Kong remained stable at 3.0% in the third quarter of 2024, indicating a tight labor market[33]. - The average waiting time for public housing has decreased from a peak of 6.1 years to 5.5 years, and is expected to drop to 4.5 years by the 2026-27 fiscal year, providing positive momentum for the public housing construction market[34]. - The group anticipates that the government's talent acquisition policies will increase housing demand in the medium to long term, contributing to a recovery in the private property market[35]. Strategic Initiatives - The group plans to continue focusing on residential development projects, including several major contracts in the New Territories and Kowloon[31]. - The group has established strong partnerships with various property developers, which is expected to yield satisfactory returns for shareholders once the private property market recovers[36]. - The group has secured two subsidized housing projects from the Hong Kong Housing Association and one public housing project from the Hong Kong Housing Authority during the reporting period[34]. Compliance and Governance - The company has complied with all provisions of the Corporate Governance Code, except for the absence of an independent non-executive director at the annual general meeting due to other commitments[46]. - The company has adopted the standard code of conduct for securities trading as per the listing rules, confirming compliance by all directors for the six months ending September 30, 2024[47]. - The company’s audit committee has reviewed the unaudited condensed consolidated financial statements for the six months ending September 30, 2024[51]. Employee and Operational Insights - The company had 241 full-time employees as of September 30, 2024, with 101 employees located in mainland China[50]. - The company has provided competitive compensation packages for employees, including discretionary bonuses and stock options[50]. - The company has not made any significant commitments other than those disclosed as of September 30, 2024[45].
美亨实业(01897) - 2025 - 中期业绩