Financial Performance - For the six months ended September 30, 2024, the group's revenue was approximately HKD 180.7 million, an increase of 41.7% compared to HKD 127.5 million for the same period last year[2]. - The loss attributable to the company's owners for the period was approximately HKD 13.8 million, compared to a profit of HKD 240,000 for the same period last year[2]. - The basic loss per share for the period was approximately HKD 1.72, compared to earnings of HKD 0.03 per share for the same period last year[3]. - The group's gross profit for the period was HKD 4.5 million, down from HKD 18.2 million in the previous period, indicating a significant decline in profitability[3]. - Total revenue from construction contracts amounted to HKD 180,671,000, representing a 41.7% increase from HKD 127,478,000 in the previous year[24]. - Direct costs rose by approximately 61.3% from about HKD 109.2 million to approximately HKD 176.1 million, driven by increased subcontracting and direct employee costs[63]. - Gross profit decreased by approximately 75.3% to about HKD 4.5 million, with the overall gross profit margin dropping from 14.3% to 2.5% due to inflation-related cost increases[64]. - Other income fell by approximately 82.6% from about HKD 517,000 to approximately HKD 944,000, mainly due to a decrease in government subsidies and rental income[65]. - The company recorded a net loss of approximately HKD 13.8 million, compared to a profit of about HKD 240,000 in the previous period, primarily due to increased direct and financing costs[70]. Cash Flow and Liquidity - The net cash used in operating activities was HKD 28.1 million, compared to HKD 14.0 million for the same period last year, reflecting increased cash outflows[11]. - The company's cash and cash equivalents at the end of the period were HKD 30.1 million, down from HKD 32.1 million at the beginning of the period[11]. - As of September 30, 2024, the company's cash and cash equivalents amounted to approximately HKD 32.1 million, down from HKD 34.1 million as of March 31, 2024[72]. - The company believes it has sufficient working capital to meet its financial obligations for at least the next twelve months[17]. - The company maintains a prudent treasury policy, ensuring a healthy liquidity position through continuous credit assessments and monitoring of cash flow[74]. Assets and Liabilities - The group's total non-current assets as of September 30, 2024, were HKD 216.5 million, a slight decrease from HKD 217.8 million as of March 31, 2024[5]. - Current liabilities increased to HKD 224.7 million from HKD 180.8 million, indicating a rise in financial obligations[5]. - Non-current assets (excluding interests in joint ventures and rental deposits) were valued at HKD 94,689,000 as of September 30, 2024, down from HKD 97,461,000 as of March 31, 2024[21]. - The group’s total liabilities, including trade and other payables, reached HKD 118,633,000 as of September 30, 2024, compared to HKD 104,105,000 as of March 31, 2024, reflecting an increase of 14.0%[41]. - The company's gearing ratio increased to approximately 67.7% from 43.5% as of March 31, 2024, indicating a rise in financial leverage[73]. Employee and Operational Costs - Employee costs totaled HKD 8,975,000, a decrease of 5% from HKD 9,452,000 in the previous year[28]. - Interest expenses for the period were HKD 2,927,000, an increase of 51.3% compared to HKD 1,937,000 in the previous year[26]. Shareholder and Corporate Governance - The board did not recommend the payment of an interim dividend for the period, consistent with the previous period[2]. - The company did not recommend an interim dividend for the six months ended September 30, 2024, consistent with the previous year[32]. - The company has complied with all applicable corporate governance code provisions, except for the deviation regarding the roles of the Chairman and CEO[89]. - The audit committee, established on September 22, 2015, is responsible for reviewing financial information and overseeing the company's financial reporting system[109]. - The interim financial statements have been reviewed by the audit committee and are deemed to comply with applicable accounting standards and legal requirements[109]. Investments and Future Commitments - The company has committed to provide additional funding of HKD 188.65 million to Great Glory for land acquisition, with an outstanding commitment of HKD 84.8 million as of September 30, 2024[78]. - The company holds a 49% equity stake in Great Glory, with a book value of approximately HKD 121,200,000, accounting for about 31.7% of total assets as of September 30, 2024[82]. - The investment in Great Glory is expected to enhance the company's commercial interests in the Hong Kong property market and create synergies with existing construction operations[82]. - The company has not engaged in any significant acquisitions or disposals of subsidiaries or associates during the reporting period[83]. - There are no plans for major investments or capital asset acquisitions in the next twelve months[88]. Market and Industry Insights - The group reported a significant increase in construction expenditure in the local building industry, with a growth of 16% in the first half of 2024, driven by public sector construction activities[56]. - The group is focusing on quality, safety, and sustainability in project management, receiving recognition from the Hong Kong Quality Assurance Agency for contributions to sustainable development[56]. - The group continues to advance existing projects, including public parking facilities and educational building projects, emphasizing the use of environmentally friendly technologies[56]. Miscellaneous - The company has not purchased, sold, or redeemed any shares during the reporting period, and as of September 30, 2024, there are no treasury shares held[103]. - The stock option plan allows for the issuance of up to 80,000,000 shares, representing 10% of the issued shares, with no specific limit for service providers[107]. - There are no significant events after the reporting period up to the date of this announcement[87].
德莱建业(01546) - 2025 - 中期业绩