Financial Performance - The company reported a net loss attributable to shareholders of approximately HKD 24,400,000 for the six months ended September 30, 2024, compared to a net loss of approximately HKD 3,800,000 for the same period in 2023[3]. - Revenue decreased by approximately HKD 107,200,000 or 34.3%, from approximately HKD 312,900,000 for the six months ended September 30, 2023, to approximately HKD 205,700,000 for the current period[5]. - The company recorded a loss before tax of approximately HKD 25,500,000 for the current period, compared to a loss of approximately HKD 2,500,000 for the same period in 2023, an increase of approximately HKD 23,000,000[17]. - The group recorded a total comprehensive loss attributable to the owners of approximately HKD 6,500,000 for the interim period, compared to a total comprehensive loss of approximately HKD 23,000,000 for the six months ended September 30, 2023[21]. - The company reported a net loss before tax of HKD 25,510,000, significantly higher than the loss of HKD 2,506,000 in the prior period[68]. - Loss attributable to owners of the company for the six months was HKD 24,399,000, compared to a loss of HKD 3,776,000 in the previous year[68]. Revenue Breakdown - Revenue from the concrete business accounted for approximately 97.2% of total revenue, with a decline of about 33.8% from approximately HKD 302,200,000 to approximately HKD 200,000,000 due to weak overall demand in China[5]. - The lending business revenue decreased by approximately HKD 5,000,000 or 46.8%, from approximately HKD 10,700,000 to approximately HKD 5,700,000, attributed to a reduction in the average total loan portfolio[7]. - Revenue for the six months ended September 30, 2024, was HKD 205,654,000, a decrease of 34.3% compared to HKD 312,883,000 for the same period in 2023[68]. - Revenue from concrete business sales was HKD 199,962, down 33.8% from HKD 302,187 in the previous year[98]. - Interest income from the lending business was HKD 5,692, down from HKD 10,696 in the previous year[98]. Cost and Expenses - Gross profit fell by approximately HKD 49,000,000 or 53.2%, from approximately HKD 92,200,000 to approximately HKD 43,200,000, primarily due to decreased sales volume in the concrete business[9]. - The gross margin for the concrete business dropped significantly from approximately 27.0% to about 18.7%, mainly due to increased raw material costs and lower selling prices[11]. - Administrative expenses decreased by approximately HKD 4,200,000 or 15.6%, from approximately HKD 27,000,000 to approximately HKD 22,800,000, mainly due to a reduction in employee costs[15]. - Financing costs increased by approximately HKD 3,500,000 or 39.6%, from approximately HKD 9,000,000 to approximately HKD 12,500,000, due to interest expenses on bonds and increased average borrowing in the concrete business[16]. - Cost of goods sold was HKD 161,204,000 for the six months ended September 30, 2024, a decrease of 26.5% from HKD 219,130,000 in the previous year[124]. Assets and Liabilities - As of September 30, 2024, the group had total debt of approximately HKD 325,500,000, a slight decrease from approximately HKD 328,600,000 as of March 31, 2024[22]. - The group's cash and cash equivalents amounted to approximately HKD 140,500,000 as of September 30, 2024, down from approximately HKD 163,400,000 as of March 31, 2024[22]. - The total liabilities as of September 30, 2024, amounted to HKD 628,654,000, a decrease from HKD 675,582,000 as of March 31, 2024, representing a reduction of approximately 6.9%[105]. - Total assets as of September 30, 2024, amounted to HKD 1,582,581, a decrease from HKD 1,635,979 as of March 31, 2024[103]. - The company's equity attributable to owners decreased to HKD 953,927 as of September 30, 2024, from HKD 960,397 as of March 31, 2024[82]. Employee and Management - The group employed a total of 173 employees as of September 30, 2024, with employee costs amounting to approximately HKD 13,700,000, a decrease from HKD 19,900,000 in the previous year[41]. - Total employee costs amounted to HKD 13,687,000 for the six months ended September 30, 2024, down 31% from HKD 19,915,000 in the same period of 2023[124]. - The total remuneration for key management personnel for the six months ending September 30, 2024, was HKD 1,077,000, compared to HKD 5,067,000 for the same period in 2023[196]. Impairment and Provisions - Other losses decreased by approximately HKD 17,400,000 or 54.7%, from approximately HKD 31,900,000 to approximately HKD 14,400,000, mainly due to reduced impairment losses on receivables[12]. - The impairment loss on trade receivables and other receivables was HKD 7,789,000 for the six months ended September 30, 2024, compared to HKD 13,243,000 in the previous year, indicating a decrease of 41.1%[116]. - The impairment loss on loans receivable was HKD 7,163,000 for the six months ended September 30, 2024, down from HKD 9,973,000 in the previous year, a decrease of 28.1%[116]. - The group’s total expected credit loss provision for trade receivables was HKD 35,382,000 as of September 30, 2024, compared to HKD 30,151,000 as of March 31, 2024[168]. Strategic Initiatives - The group plans to regularly review its business strategies and may make necessary adjustments to respond to future challenges, focusing on cost control and efficiency improvements[49]. - The group has adopted a conservative financial policy to mitigate foreign exchange risks, with no foreign currency hedging policies currently in place[28]. - The group will maintain a cautious approach to credit control and may further reduce its loan portfolio in response to market conditions[52]. Shareholder Information - The total number of issued shares as of September 30, 2024, was 755,654,743[60]. - Major shareholders included Capital Wealth Global Limited, holding 135,218,100 shares, representing 17.89% of the company[59]. - The company did not declare an interim dividend for the six-month period ending September 30, 2023[65]. - The company did not recommend the payment of an interim dividend for the current period, consistent with the previous year[126]. Debt and Financing - The company issued a seven-year corporate bond with a principal amount of USD 20,000,000 (approximately HKD 154,752,000) at an annual interest rate of 4.2%[182]. - The company issued a three-year non-listed bond with a principal amount of HKD 25,000,000, with interest rates ranging from 8% to 10% over its term[185]. - The company issued a six-year corporate bond with a principal amount of HKD 63,000,000, with interest rates starting at 3.5% and increasing to 10.5%[188]. - The total outstanding factoring loans as of September 30, 2024, were secured by trade receivables of approximately HKD 115,784,000[179].
华盛国际控股(01323) - 2025 - 中期业绩