Financial Performance - For the six months ended September 30, 2024, the group's revenue was approximately HK$78.9 million, a decrease of about 9.4% compared to HK$87.1 million for the same period in 2023[25] - Gross profit for the same period was approximately HK$21.7 million, down about 11.4% from HK$24.5 million in the previous year[25] - The net loss for the six months ended September 30, 2024, was approximately HK$2.4 million, compared to a net loss of HK$0.3 million for the same period in 2023[25] - Basic and diluted loss per share for the period was HK$0.24, compared to a loss of HK$0.03 for the same period in 2023[25] - The board of directors does not recommend the payment of any dividend for the six months ended September 30, 2024[25] - Other income for the period was HK$154,000, slightly down from HK$158,000 in the previous year[26] - The group recorded a financial cost of HK$536,000, a decrease from HK$786,000 in the same period last year[26] - The group experienced a pre-tax loss of HK$1.9 million, compared to a pre-tax profit of HK$47,000 in the previous year[26] - The total comprehensive loss for the period attributable to owners of the company was HK$2.4 million, compared to HK$312,000 in the previous year[26] - The company reported a decrease in sales and service costs to HK$57.2 million from HK$62.6 million year-on-year[26] Assets and Liabilities - As of September 30, 2024, the company's total assets amounted to HKD 209,075,000, an increase from HKD 201,214,000 as of March 31, 2024, representing a growth of approximately 4.3%[27] - The company's cash and cash equivalents increased to HKD 44,205,000 from HKD 35,185,000, reflecting a growth of 25.5%[27] - The company's total equity decreased to HKD 184,347,000 as of September 30, 2024, down from HKD 186,765,000 as of March 31, 2024, a decline of about 1.3%[28] - The company reported an increase in inventory to HKD 19,037,000 from HKD 16,698,000, which is an increase of approximately 14.0%[27] - The company’s trade and other payables rose to HKD 26,110,000 from HKD 23,986,000, reflecting an increase of about 8.8%[27] - The company’s contract assets decreased to HKD 118,654,000 from HKD 123,525,000, a decline of approximately 4.0%[27] - The company’s retained earnings as of September 30, 2024, were HKD 106,495,000, down from HKD 108,913,000 as of March 31, 2024, a decrease of approximately 2.2%[28] - The debt-to-equity ratio as of September 30, 2024, was approximately 13.7%, unchanged from March 31, 2024[76] Revenue Breakdown - Revenue for the six months ended September 30, 2024, was HKD 78,909,000, a decrease of 9.5% from HKD 87,133,000 in the same period of 2023[35] - Revenue from construction protection engineering was HKD 52,719,000, down 20.8% from HKD 66,557,000 year-on-year[35] - Revenue from construction protection products was HKD 26,190,000, an increase of 27.5% compared to HKD 20,576,000 in the previous year[35] - The operating performance for construction protection engineering was HKD 9,826,000, a decrease of 40.5% from HKD 16,530,000 in the same period last year[39] - The operating performance for construction protection products was HKD 11,861,000, an increase of 48.0% from HKD 7,976,000 year-on-year[39] Expenses - Total administrative expenses amounted to HKD 19,941,000, compared to HKD 20,106,000 in the previous year[38] - Total employee costs increased to HKD 22,787,000, up 10.1% from HKD 20,696,000 in the previous year[8] - The company incurred a tax expense of HKD 505,000, an increase from HKD 359,000 in the prior period[45] - Financial costs decreased from approximately HKD 786,000 to approximately HKD 536,000, a reduction of about 31.8%[72] - Administrative expenses decreased from approximately HKD 20.1 million to approximately HKD 19.9 million, a decline of about 1.0%[71] Operational Insights - The company reported a loss before tax of HKD 1,913,000 for the six months ended September 30, 2024, compared to a profit of HKD 47,000 in the same period of 2023[38] - The company experienced a net foreign exchange loss of HKD 28,000, compared to a gain of HKD 52,000 in the previous year[42] - The company recorded a loss of approximately HKD 1,000,000 from the early termination of a lease agreement[49] - The group has bank borrowings of HKD 21.4 million as of September 30, 2024, down from HKD 22.3 million[59] - The number of projects generating confirmed revenue of HKD 1 million or more decreased from 18 to 11[65] - The group has a total of 322 projects confirmed for revenue, an increase from 309 projects in the previous period[65] Strategic Initiatives - The group plans to regularly review its asset structure and business strategy to adapt to future challenges while maintaining cost control and efficiency to sustain profitability and market competitiveness[93] - The group aims to expand its workforce and secure more construction protection projects in Hong Kong to strengthen its market position[93] - The group has successfully developed 10 new product types under its own brands "DP ChemTech" and "DP," which have passed laboratory testing and certification, ready for market entry[88] - The net proceeds from the company's listing are approximately HKD 21.6 million, with HKD 20.0 million already utilized for various purposes, including equipment purchases and personnel expansion[91][92] Risk Factors - The group anticipates that intense bidding competition, strict customer budgets, rising interest rates, and increasing material and labor costs will continue to impact operations and financial performance in the short term[93] - The group faces several risks that may adversely affect its operational and financial performance, including reliance on non-recurring revenue and procurement orders[95] - The slow economic recovery post-COVID-19 may significantly impact the group's business operations and financial results[95] - The group relies on independent third-party suppliers for the production of its proprietary construction protection products, which poses a risk if stable supply is not maintained[95] - The group is dependent on major subcontractors for completing construction protection projects, and any significant cost increases or subpar work could greatly impact the company[95] Governance and Compliance - The company has maintained compliance with corporate governance practices based on GEM listing rules, with one exception regarding the separation of the chairman and CEO roles[106] - The company has adopted a code of ethics and securities trading guidelines, confirming compliance with trading standards as of September 30, 2024[108] - The audit committee was established on March 18, 2020, to oversee financial reporting processes, risk management, and internal controls, ensuring compliance with applicable accounting standards and GEM listing rules[109] - The chairman and CEO roles are held by Mr. Lin, which the board believes is in the best interest of the company despite deviating from corporate governance guidelines[107]
新威工程集团(08616) - 2025 - 中期财报