Financial Performance - The group's revenue for the six months ended September 30, 2024, decreased by approximately 24.0% to about HKD 171,600,000 (2023: HKD 225,700,000) [3] - The group's profit for the six months ended September 30, 2024, was approximately HKD 4,100,000 (2023: loss of approximately HKD 2,600,000) [3] - Basic earnings per share attributable to the company's owners for the six months ended September 30, 2024, was approximately HKD 0.06 (2023: basic loss per share of approximately HKD 0.067, restated) [3] - The board of directors did not recommend the payment of any dividend for the six months ended September 30, 2024 [3] - The company's net profit for the period was approximately HKD 4,100,000, a turnaround from a net loss of approximately HKD 2,600,000 in the previous year, primarily due to one-time recognition of revised acceptance bill income [127] - Basic earnings per share were approximately HKD 0.060, compared to a basic loss per share of approximately HKD 0.067 in the previous year [128] Revenue Breakdown - Revenue for the six months ended September 30, 2024, was HKD 171,561,000, a decrease of 24% compared to HKD 225,723,000 for the same period in 2023 [44][68] - The revenue primarily came from civil engineering services, with subcontracting revenue amounting to approximately HKD 87.3 million, accounting for about 51.0% of total revenue [117] - The civil engineering segment generated revenue of HKD 171,561,000, while the media and advertising segment reported no revenue for the period [60] - Major customer A contributed HKD 46,949,000 in revenue, an increase from HKD 41,314,000, while major customer B's revenue decreased to HKD 37,313,000 from HKD 64,853,000 [78] Profitability and Costs - The company's gross profit for the six months ended September 30, 2024, was HKD 4,137,000, compared to HKD 10,949,000 in 2023 [5] - Gross profit decreased by approximately 62.2% to about HKD 4,100,000 (2023: HKD 10,900,000), with a gross profit margin of approximately 2.4% (2023: 4.9%) attributed to additional construction costs from low-margin civil engineering projects [120] - Operating profit for the six months ended September 30, 2024, was HKD 7,477,000, an increase from HKD 3,558,000 in 2023 [5] - Employee costs increased slightly to HKD 54,239,000 for the six months ended September 30, 2024, compared to HKD 53,779,000 in 2023, reflecting a year-on-year increase of 0.9% [81] - Administrative and operating expenses increased by approximately 47.9% to about HKD 11,700,000 (2023: HKD 7,900,000), mainly due to additional legal and professional fees related to special transactions [123] Assets and Liabilities - Total assets as of September 30, 2024, amounted to HKD 231,794,000, compared to HKD 218,960,000 as of March 31, 2024 [22] - Total liabilities as of September 30, 2024, were HKD 255,579,000, compared to HKD 622,390,000 as of March 31, 2024 [24] - The company's net liabilities as of September 30, 2024, were HKD (23,785,000), a significant improvement from HKD (403,430,000) as of March 31, 2024 [24] - The company's total equity as of September 30, 2024, was reported at HKD (23,785,000), reflecting a decrease from HKD (403,430,000) a year prior [30] - The company's current liabilities net amount was approximately HKD 6,760,000 as of September 30, 2024 [37] Cash Flow and Financing - Cash generated from operating activities was HKD 5,144,000, a decrease from HKD 6,398,000 in the previous year [28] - The company experienced a net cash outflow from investing activities of HKD 7,817,000, compared to HKD 2,762,000 in the prior year [28] - Financing activities generated a net cash inflow of HKD 18,259,000, significantly improving from a cash outflow of HKD 3,128,000 in the previous year [28] - The total cash and cash equivalents at the end of the period increased to HKD 63,826,000, up from HKD 52,131,000 a year earlier [28] - The company extended the maturity date of existing convertible bonds to December 9, 2025, and reduced the annual interest rate from 3% to 0.8% [135] Shareholder Information - The company’s major shareholder, Mr. Jian Guoxiang, holds 54.6% of the issued share capital, ensuring significant control over the company [30] - As of September 30, 2024, Mr. Jian Guoxiang holds a total of 31,263,479 shares, representing 54.64% of the total issued share capital [157] - Shunleetat (BVI) Limited, wholly owned by Mr. Jian Guoxiang, possesses 14,596,813 shares, accounting for 25.51% of the total issued share capital [160] Future Outlook and Strategy - The company is focusing on cost control measures to improve operational performance and cash flow, while actively participating in new construction projects [37] - The company is cautiously optimistic about future market prospects while facing rising operational costs and intense market competition, leading to declining project profit margins [131] - The company plans to continue exploring new business and investment opportunities to diversify its customer base and mitigate business risks [131]
进业控股(08356) - 2025 - 中期业绩