Financial Performance - Revenue decreased from approximately HKD 282.8 million for the six months ended September 30, 2023, to approximately HKD 265.3 million for the six months ended September 30, 2024, representing a decrease of about HKD 17.5 million or 6.2% [2] - Gross profit decreased from approximately HKD 29.3 million for the six months ended September 30, 2023, to approximately HKD 2.9 million for the six months ended September 30, 2024, representing a decrease of about HKD 26.4 million or 90.2% [2] - The group recorded a loss attributable to owners of the company of approximately HKD 7.2 million for the six months ended September 30, 2024, compared to a profit of approximately HKD 16.6 million for the same period in 2023 [2] - Basic loss per share attributable to owners of the company was approximately HKD 0.7 cents for the six months ended September 30, 2024, compared to basic earnings of approximately HKD 1.7 cents for the same period in 2023 [2] - The group recorded a profit and total comprehensive income of approximately HKD 16.6 million for the six months ended September 30, 2023, which turned into a loss of approximately HKD 7.2 million for the six months ended September 30, 2024, primarily due to a decrease in gross profit [58] - Earnings per share decreased from HKD 1.7 to HKD (0.7) for the respective periods, indicating a negative shift in profitability [30] Dividend and Shareholder Returns - The board has resolved not to declare an interim dividend for the six months ended September 30, 2024, and 2023 [2] - The board has resolved not to declare an interim dividend for the six months ended September 30, 2024, and 2023 [80] Assets and Liabilities - Total assets as of September 30, 2024, amounted to approximately HKD 368.6 million, a decrease from approximately HKD 384.6 million as of March 31, 2024 [7] - Total liabilities as of September 30, 2024, were approximately HKD 49.98 million, down from approximately HKD 58.77 million as of March 31, 2024 [9] - Bank borrowings amounted to approximately HKD 14.1 million as of September 30, 2024, compared to zero on March 31, 2024 [60] - The debt-to-equity ratio was approximately 4.4% as of September 30, 2024, due to the bank borrowings, while it was zero on March 31, 2024 [61] Cash Flow and Receivables - Cash and cash equivalents increased to approximately HKD 66.83 million as of September 30, 2024, from approximately HKD 31.87 million as of March 31, 2024 [7] - Trade receivables increased to approximately HKD 80.47 million as of September 30, 2024, compared to approximately HKD 76.04 million as of March 31, 2024 [7] - Trade receivables net amount increased from HKD 76,038,000 to HKD 80,465,000, indicating a rise in outstanding payments [36] Operational Performance - The company continues to engage in providing masonry works for public and private residential and commercial properties [11] - The company’s revenue is solely derived from the provision of civil engineering services in Hong Kong, indicating a focused operational segment [19] - The company is seeking to expand into the renovation industry to diversify revenue sources amid a downturn in the mud engineering sector [45] - The company is entering the Southeast Asian market to enhance revenue sources, having recently secured a construction project in Cambodia [47] - The company currently has 56 projects on hand with a total project value of approximately HKD 506.1 million, down from 61 projects valued at about HKD 564.8 million as of March 31, 2024 [45] Expenses and Costs - Employee benefits expenses, including director remuneration, increased to HKD 24,315,000 for the six months ended September 30, 2024, compared to HKD 16,613,000 for the same period in 2023, reflecting a rise of 46.5% [25] - Administrative expenses increased by approximately HKD 0.8 million or 7.6%, from about HKD 9.9 million to about HKD 10.7 million, mainly due to rising employee costs [54] - Depreciation of property, plant, and equipment was HKD 678,000 for the six months ended September 30, 2024, slightly down from HKD 736,000 in 2023 [25] Taxation - The company reported a tax credit of HKD 4,000 for the six months ended September 30, 2024, compared to a tax expense of HKD 3,175,000 for the same period in 2023 [27] Compliance and Governance - The company has adhered to the corporate governance code as per the listing rules for the six months ending September 30, 2024 [82] - The audit committee has reviewed the interim financial results and confirmed compliance with applicable accounting standards and regulations [92] - The company has established an audit committee with independent non-executive directors to oversee financial reporting and risk management [90] - The company has confirmed compliance with the standard code for securities trading by all directors for the six months ending September 30, 2024 [83] Future Outlook - The company does not expect the adoption of new accounting standards to have a significant impact on its financial performance or position [16] - The company is currently evaluating the impact of new accounting standards that will come into effect in the future [16] Share Offering - The total net proceeds from the share offering amounted to HKD 125 million, with net proceeds of approximately HKD 91.8 million after deducting underwriting commissions and related expenses [75] - There were no significant changes to the intended use of the net proceeds as disclosed in the prospectus as of the date of this interim announcement [78] Miscellaneous - The company expressed gratitude for the efforts of its management and staff, as well as the support from shareholders and business partners [94] - The interim report will be published on the company's website and the stock exchange in accordance with listing rules [93] - No share options were granted, exercised, cancelled, or lapsed under the share option plan during the six months ending September 30, 2024 [86] - There were no purchases, sales, or redemptions of the company's listed securities by the company or its subsidiaries during the six months ending September 30, 2024 [84] - The group had no significant contingent liabilities as of September 30, 2024, and March 31, 2024 [66] - The group had no major investments, acquisitions, or disposals of subsidiaries, associates, or joint ventures during the six months ended September 30, 2024 [69]
GC CONSTRUCTION(01489) - 2025 - 中期业绩