Financial Performance - The Group's overall revenue decreased by 0.6% from approximately HK$75,549,000 during the Comparative Period to approximately HK$75,068,000 during the Period [19]. - The overall gross loss decreased by 78.7% from approximately HK$51,192,000 during the Comparative Period to approximately HK$10,914,000 during the Period, with a gross loss margin decreasing from approximately 67.8% to approximately 14.5% [20]. - The Group reported a net loss of approximately HK$44,388,000 during the Period, compared to a net loss of approximately HK$23,524,000 during the Comparative Period [32]. - The Group recorded a net loss of approximately HK$44,388,000 for the period, compared to a net loss of HK$23,524,000 in the comparative period [35]. - Revenue for the six months ended September 30, 2024, was HK$75,068,000, a decrease from HK$75,549,000 in the same period of 2023, representing a decline of 0.6% [110]. - Gross loss for the period was HK$10,914,000, significantly improved from a gross loss of HK$51,192,000 in 2023, indicating a reduction of 78.7% [110]. - Loss for the period increased to HK$44,825,000 compared to HK$23,524,000 in 2023, reflecting an increase of 90.1% [113]. - The company reported a total comprehensive loss of HK$44,388,000 for the period, compared to HK$23,524,000 in 2023, marking an increase of 88.5% [113]. - The company experienced a net cash used in financing activities of HK$3,059,000, compared to HK$53,229,000 in the previous year, indicating improved cash flow management [125]. - The group incurred a loss of approximately HK$44,825,000 for the six months ended September 30, 2024, highlighting ongoing financial challenges [136]. Revenue and Income Sources - The Group commenced sales of chemical products to diversify income streams and mitigate business risks starting from Q3 2023 [14]. - Other income significantly decreased from approximately HK$54,798,000 during the Comparative Period to approximately HK$160,000 during the Period, primarily due to the absence of recognized compensation from the former ultimate holding company [23]. - Interest income for the six months ended September 30, 2024, was HK$27,000, a significant decrease from HK$247,000 in the same period of 2023 [176]. - The company recognized other income of HK$160,000 for the six months ended September 30, 2024, compared to HK$54,798,000 in the previous year, which included a compensation of HK$52,700,000 from the former ultimate holding company [179]. Expenses and Liabilities - Administrative and other operating expenses increased by 16.3% from approximately HK$19,941,000 during the Comparative Period to approximately HK$23,190,000 during the Period [23]. - A provision for impairment of property, plant, and equipment of approximately HK$3,050,000 was recognized during the Period, whereas no such impairment was made during the Comparative Period [26]. - An additional provision for expected credit loss of approximately HK$6,406,000 was recognized during the Period due to the deteriorating operating environment in the construction industry [27]. - The total staff costs incurred by the Group during the Period were approximately HK$20,874,000, an increase from approximately HK$18,000,000 during the Comparative Period [67]. - The Group's net current liabilities increased to HK$72,778,000 from HK$38,275,000, indicating a worsening liquidity position [115]. Project and Business Development - For the six months ended September 30, 2024, K. H. Group Holdings Limited reported a total of 4 active projects, with 2 completed and 2 ongoing as of the reporting date [14]. - One new project was awarded during the twelve months ended September 30, 2024, resulting in a total of 3 projects in progress as of September 30, 2024 [14]. - The Group plans to expand into the environmental protection sector, driven by increased demand for environmental recycling and renewable energy [39]. - The Group intends to acquire a company with N-Methyl-2-pyrrolidone recycling facilities, as detailed in an announcement dated November 5, 2024 [39]. - The Group has secured decoration contracts worth over RMB 5 million in the People's Republic of China [38]. Financial Position and Liquidity - As of September 30, 2024, total debts amounted to approximately HK$17,993,000, a decrease from HK$25,667,000 as of March 31, 2024 [44]. - The Group plans to strengthen its liquidity position by reducing capital expenditures, managing debt levels, and actively recovering outstanding receivables amid challenges in the Hong Kong construction sector [34]. - As of September 30, 2024, the Group had bank and cash balances of approximately HK$72,123,000, down from approximately HK$84,497,000 as of March 31, 2024 [52]. - The current ratio of the Group as of September 30, 2024, was 0.6, compared to 0.8 as of March 31, 2024 [52]. - The Group's gearing ratio was not applicable as it recorded a deficit attributable to owners of the Company as of September 30, 2024 [52]. Governance and Compliance - The Audit Committee, consisting of three Independent Non-executive Directors, has reviewed the condensed consolidated interim financial statements for the Period [105]. - The Company expresses gratitude to its management, staff, shareholders, and business associates for their support during the period [106]. - The Company is committed to compliance with the Model Code for Securities Transactions by Directors throughout the reporting period [82]. - The interests of Directors in the Company and associated corporations have been disclosed in accordance with the Securities and Futures Ordinance [91]. - The Company has maintained a transparent governance structure as evidenced by the establishment of the Audit Committee [105]. Shareholder Information - The Board does not recommend the payment of an interim dividend to shareholders for the Period [71]. - As of September 30, 2024, Mr. Chen holds 300,000,000 shares, representing a 75% interest in the Company [90]. - Blessing Well, a beneficial owner, also holds 300,000,000 shares, equating to a 75% interest in the Company [99]. - Sendlink Limited, which is wholly owned by Mr. Chen, is deemed to have a 75% interest in the Company through its ownership of Blessing Well [101]. - The Company has adopted a share option scheme since February 19, 2016, but no share options have been granted under this scheme to date [84].
剑虹集团控股(01557) - 2025 - 中期业绩