Financial Performance - Total revenue recognized for the six months ended September 30, 2024, was approximately HK$130.7 million[14]. - The Group's revenue increased by approximately HK$22.9 million or 21.2%, from approximately HK$107.8 million for the six months ended 30 September 2023 to approximately HK$130.7 million for the six months ended 30 September 2024[24]. - Revenue for the six months ended September 30, 2024, increased to HK$130,674,000, up 21.14% from HK$107,796,000 in the same period of 2023[68]. - The company reported a total comprehensive income of HK$2,019,000 for the period, compared to HK$1,139,000 in the previous year[68]. - The Group's net profit increased by approximately HK$1.1 million from approximately HK$0.9 million to approximately HK$2.0 million for the six months ended 30 September 2024[37]. - Profit before taxation rose to HK$2,254,000, compared to HK$1,353,000 in the previous year, reflecting a growth of 66.51%[68]. - Earnings per share increased to HK$0.10, up from HK$0.06 in the same period last year, marking a 66.67% increase[68]. Revenue Breakdown - Revenue from residential properties rose to approximately HK$90.0 million, accounting for 68.9% of total revenue, compared to HK$55.2 million or 51.2% in the previous period[27]. - Revenue from façade works and building metal finishing was approximately HK$86.1 million, representing 65.9% of total revenue[23]. - The contribution from public facilities revenue was approximately HK$40.6 million, accounting for 31.1% of total revenue, down from HK$51.5 million or 47.8% in the previous period[27]. - Revenue from façade works was HK$86,105,000, up from HK$73,665,000, representing a growth of 16.9%[111]. - Revenue from building metal finishing works increased to HK$44,569,000 from HK$34,131,000, marking a significant rise of 30.6%[111]. Project and Contract Status - As of September 30, 2024, the Group had 17 ongoing projects with a total original contract sum of approximately HK$920.1 million and a project backlog of approximately HK$413.1 million[14]. - During the same period, the Group was awarded 5 new projects with a total contract sum of approximately HK$208.5 million[15]. - The Group's contracts with customers are primarily fixed-price contracts, indicating a stable revenue model[119]. Cost and Expenses - Operating and administrative expenses rose by approximately HK$1.9 million or 17.4%, from approximately HK$10.7 million to approximately HK$12.6 million, primarily due to higher staff costs[36]. - Total staff costs for the six months ended September 30, 2024, amounted to HK$18,223,000, up from HK$17,590,000 in 2023, reflecting a year-on-year increase of approximately 3.6%[126]. - The Group anticipates low demand and stringent budgets in local residential and commercial development projects, which may negatively impact gross profit margins[19]. Assets and Liabilities - As of 30 September 2024, the Group had net current assets of approximately HK$120.1 million, with a current ratio of approximately 3.9 times[41]. - Total assets as of September 30, 2024, were HK$162,262,000, slightly down from HK$162,864,000 as of March 31, 2024[70]. - Current liabilities decreased to HK$42,138,000 from HK$44,453,000, indicating improved liquidity management[70]. - The Group's gearing ratio was approximately 3.7% as of September 30, 2024, compared to zero on March 31, 2024[48]. Cash Flow and Financial Management - Bank balances and cash decreased to approximately HK$59.1 million as of 30 September 2024, down from approximately HK$75.5 million[42]. - Net cash used in operating activities was HK$17,007,000, a significant decline compared to a net cash inflow of HK$14,525,000 in 2023[93]. - Cash and cash equivalents at the end of the period were HK$59,055,000, down from HK$75,452,000 at the beginning of the period[93]. - The Group has adopted a prudent approach in managing financial resources and maintaining adequate cash and cash equivalents[48]. Market Conditions and Outlook - The projected private flat supply in Hong Kong for the next three to four years remains high, with property developers hesitant to invest in new construction projects[18]. - Record-high office vacancy rates and declining office rents are expected to depress demand for new commercial properties, leading to a significant drop in commercial property development projects[18]. - The Group is prepared to implement more cost control measures to mitigate challenges in the market[19]. - The experienced management team and market reputation are expected to help the Group maintain market share and capture future opportunities[19]. Investments and Capital Expenditure - The Group incurred capital expenditure of approximately HK$1.5 million during the six months ended September 30, 2024, compared to approximately HK$30,000 for the same period in 2023[56]. - The Group did not engage in any significant investments, acquisitions, or disposals during the reporting period[59]. - There were no specific plans for material investments or capital assets as of September 30, 2024[60]. Trade Receivables and Payables - As of September 30, 2024, trade receivables amounted to HK$16,302, a decrease of 47.6% from HK$31,098 as of March 31, 2024[156]. - The ageing analysis of trade receivables shows that amounts overdue by 0 to 30 days decreased from HK$18,315 to HK$14,625, while those overdue by 31 to 60 days decreased from HK$11,378 to HK$1,383[164]. - Trade payables stood at HK$15,319,000 as of September 30, 2024, slightly up from HK$15,287,000 as of March 31, 2024[186]. - The current portion of trade and other payables increased to HK$23,910,000 as of September 30, 2024, from HK$22,665,000 as of March 31, 2024[186]. Taxation and Financial Reporting - The income tax expense is calculated under a two-tiered profits tax rates regime in Hong Kong, with the first HK$2,000,000 of profits taxed at 8.25% and profits above that taxed at 16.5%[130]. - The unaudited condensed consolidated financial statements for the six months ended September 30, 2024, have been prepared in accordance with Hong Kong Accounting Standards and are presented in Hong Kong Dollars (HK$) rounded to the nearest thousands (HK$'000)[99]. - The financial statements have not been audited or reviewed by external auditors but have been reviewed by the company's audit committee[102].
智中国际(06063) - 2025 - 中期财报