Financial Performance - For the six months ended September 30, 2024, the group's revenue decreased by approximately HKD 79.5 million or 36.5% to about HKD 138.5 million, compared to HKD 218.0 million for the same period in 2023[12]. - The gross profit for the same period decreased by approximately HKD 5.5 million or 51.4% to about HKD 5.2 million, with a gross profit margin of approximately 3.8%, down from 4.9% in the previous year[16]. - The decline in revenue and gross profit was primarily due to the completion of large projects and a decrease in the number of large projects available for tender[15]. - The group recorded a net loss of approximately HKD 10.5 million for the six months ended September 30, 2024, an increase of HKD 10.1 million compared to approximately HKD 0.4 million for the same period in 2023, mainly due to decreased revenue and gross profit, as well as increased administrative and other operating expenses[21]. - The company reported a loss before tax of HKD 10,465,000, compared to a loss of HKD 350,000 in the prior year, indicating a significant increase in losses[43]. - Basic and diluted loss per share was HKD 2.18, compared to HKD 0.07 for the same period last year[43]. Economic Outlook - The Hong Kong economy is expected to maintain a moderate recovery, with an anticipated annual growth rate between 2.5% and 3%[13]. - The government plans to provide a total of 189,000 public housing units over the next five years, which is expected to drive future renovation project demand[13]. Business Strategy - The company is actively exploring new business opportunities, particularly in the Web3.0 sector, which is strongly supported by government policies[13]. - The group’s main business segment is renovation services, which is regularly reviewed by the board for performance assessment[71]. Cash Flow and Liquidity - As of September 30, 2024, the group's cash and cash equivalents totaled approximately HKD 41.7 million, a decrease from approximately HKD 52.6 million as of March 31, 2024, attributed to a net cash outflow of approximately HKD 10.9 million from operating and financing activities[22]. - The company reported a net cash outflow from operating activities of HKD 10,362,000, compared to a cash inflow of HKD 20,622,000 in the prior year[55]. - Cash and bank balances at the end of the period were HKD 38,665,000, down from HKD 49,527,000 at the end of the previous reporting period[45]. Debt and Equity - The group's debt-to-equity ratio increased from approximately 55.0% as of March 31, 2024, to approximately 63.2% as of September 30, 2024, primarily due to an increase in borrowings during the six months ended September 30, 2024[22]. - The company’s borrowings increased to HKD 53,097,000 as of September 30, 2024, compared to HKD 48,000,000 as of March 31, 2024[111]. Expenses - Administrative and other operating expenses, along with expected credit loss provisions, amounted to approximately HKD 12.9 million for the six months ended September 30, 2024, an increase of HKD 4.8 million or 59.3% compared to approximately HKD 8.1 million for the same period in 2023[18]. - The total employee costs for the six months ended September 30, 2024, amounted to approximately HKD 12.2 million, compared to approximately HKD 11.5 million for the same period in 2023[34]. Dividends and Shareholder Information - The board resolved not to declare any interim dividend for the six months ended September 30, 2024, consistent with the same period in 2023[35]. - Major shareholder China Sports Asset Management Co., Ltd. holds 75% of the issued share capital, equivalent to 360,000,000 shares[126]. Governance and Compliance - There were no conflicts of interest reported among directors or major shareholders in the six months ending September 30, 2024, indicating a clean governance environment[136]. - The audit committee, consisting of two independent non-executive directors, reviewed and approved the unaudited interim financial statements for the six months ending September 30, 2024, ensuring financial integrity[143]. - The company is actively seeking suitable candidates to fill the vacant chairman position, aiming to comply with listing rules regarding board composition[140].
耀高控股(01796) - 2025 - 中期财报