Company Overview - The interim report covers the six-month period ending September 30, 2024[1]. - The company is incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange since September 29, 2020[7]. - The board of directors includes Mr. Leung Yam Cheung as Chairman and CEO, along with two other executive directors and several independent non-executive directors[2]. - The report adheres to the listing rules of the Hong Kong Stock Exchange, ensuring compliance with regulatory standards[7]. - The Company has appointed Mr. Leung Yam Cheung as CEO following the resignation of Mr. Leung Wing Hoi on September 22, 2023[55]. - The Company emphasizes sound corporate governance principles, including effective internal control and transparency to stakeholders[55]. - The Company has adopted the principles and code provisions of the Corporate Governance Code as set out in the Listing Rules[55]. Financial Performance - Revenue for the period was approximately HK$201.3 million, a decrease of about 28.1% compared to approximately HK$280.0 million for the six months ended September 30, 2023[29]. - The Group's gross profit margin declined significantly from approximately 5.0% in the prior period to about 0.7%, with gross profit decreasing from approximately HK$13.9 million to HK$1.4 million[19]. - The net loss increased from HK$4.2 million for the corresponding period in 2023 to HK$24.2 million for the current period[19]. - For the six months ended September 30, 2024, the company reported a loss attributable to owners of the Company of HK$24,188,000, compared to a loss of HK$4,223,000 for the same period in 2023, representing an increase in loss of approximately 471%[111]. - The loss before tax for the period was HK$24,188,000, significantly higher than the loss of HK$4,223,000 reported in the same period last year[74]. - The loss per share attributable to owners of the company was HK$1.51, compared to HK$0.26 in 2023[74]. Challenges and Market Conditions - The construction industry in Hong Kong is facing significant challenges in 2024, including a slowdown in the property market and intense competition driving down contract prices[20]. - The Group anticipates ongoing challenges related to market competition and cost uncertainties, and will maintain a prudent approach to tender preparation[21]. - Rising labor costs, unexpected on-site expenses, and delays in project payments have added to cash flow pressures[20]. - Despite low gross profit margins expected in the near term, the Group will focus on securing projects with stable returns and effective cost management[22]. Governance and Compliance - The Company has established various board committees, including an audit committee and a remuneration committee, to oversee governance[10]. - The Audit Committee has been established in compliance with Rules 3.21 and 3.22 of the Listing Rules[61]. - All Directors confirmed full compliance with the Model Code regarding dealings in the Company's securities during the Period[61]. - The Board will periodically review the current structure and make necessary arrangements as deemed appropriate[55]. Financial Position - As of September 30, 2024, the Group had net current assets of approximately HK$340.1 million, down from HK$359.1 million as of March 31, 2024[38]. - Total equity attributable to owners of the Company amounted to approximately HK$334.2 million as of September 30, 2024, compared to HK$358.4 million as of March 31, 2024[38]. - The Group's total interest-bearing borrowings amounted to approximately HK$55.3 million as of September 30, 2024, compared to HK$53.7 million as of March 31, 2024[38]. - The Group's interest-bearing borrowing with a carrying amount of HK$46.8 million did not meet one of the financial covenants, specifically that consolidated EBITDA should not fall below HK$30 million[38]. - The gearing ratio was approximately 16.6%, up from 15.0% on March 31, 2024[41]. - The Group had no significant capital commitments or contingent liabilities as of September 30, 2024, maintaining a stable financial position[41]. Employee and Operational Metrics - The total staff cost for the period amounted to approximately HK$130.1 million, a decrease from HK$177.8 million for the same period in 2023[44]. - The Group had 818 employees as of September 30, 2024, a reduction from 1,236 employees on March 31, 2024[44]. - The Directors have a reasonable expectation that the Group has adequate resources to continue operational existence for the foreseeable future, adopting a going concern basis for the financial statements[94]. Revenue Sources and Customer Contributions - For the six months ended 30 September 2024, the Group's revenue from external customers was derived entirely from Hong Kong, amounting to HK$174,010,000, compared to HK$247,379,000 for the same period in 2023, representing a decrease of approximately 29.6%[101][102]. - Customer A contributed HK$122,962,000 to the Group's revenue in the first half of 2024, while in 2023, the contribution was HK$129,590,000, indicating a decline of about 5.0%[101]. - Customer B's revenue contribution decreased significantly from HK$51,419,000 in 2023 to HK$25,776,000 in 2024, reflecting a drop of approximately 49.8%[101]. - Customer C's revenue contribution also fell from HK$66,370,000 in 2023 to HK$25,252,000 in 2024, marking a decrease of around 61.9%[101]. Cash Flow and Liquidity - The net cash used in operating activities for the six months ended September 30, 2024, was HK$2,839,000, compared to a net cash inflow of HK$1,352,000 for the same period in 2023[90]. - Cash and cash equivalents at the end of the period on September 30, 2024, were HK$9,997,000, down from HK$13,412,000 at the beginning of the period, reflecting a decrease of approximately 25.5%[90]. - The company’s cash and cash equivalents at the beginning of the period were HK$13,412,000, compared to HK$24,553,000 at the same time last year, showing a decrease of approximately 45.4%[90]. - The Group continues to follow a prudent policy in managing cash and maintaining strong liquidity to seize future growth opportunities[41]. Impairment and Provisions - The Group recognized a provision for loss allowance on trade receivables and contract assets of approximately HK$11.2 million due to aging receivables[19]. - Impairment loss recognized for the six months ended 30 September 2024 amounted to approximately HK$11.2 million, up from HK$7.7 million in 2023[36]. - The impairment losses recognized in respect of trade receivables and contract assets totaled HK$9,069,000 and HK$11,184,000 respectively, compared to HK$7,734,000 and HK$7,671,000 in the previous year[107]. Future Outlook - The interim report is expected to provide insights into user data, market expansion, and future outlook[1]. - The Group aims to navigate the challenging environment by focusing on cost control, risk management, and selective tendering for profitable projects[21].
天任集团(01429) - 2025 - 中期业绩