Revenue and Profit Performance - The Group's revenue for the Reporting Period amounted to approximately HK$471.8 million, representing a 42.4% increase compared to the corresponding period last year[21] - The Group's gross profit increased by 3.0% to HK$23.9 million during the Reporting Period[21] - The Group's net profit amounted to approximately HK$5.6 million, a 3.7% increase compared to the previous year[21] - Revenue increased by HK$140.5 million (42.4%) to HK$471.8 million, driven by an increase in the number of sizable projects[30][32] - Gross profit rose by HK$0.7 million (3.0%) to HK$23.9 million, but gross profit margin decreased to 5.1% from 7.0% due to low profit margins on certain projects[31][33] - Net profit increased by HK$0.2 million (3.7%) to HK$5.6 million, primarily due to higher gross profit[39][44] - Revenue for the six months ended 30 September 2024 increased to HK$471,830 thousand, up 42.4% from HK$331,316 thousand in the same period last year[83] - Gross profit for the six months ended 30 September 2024 was HK$23,862 thousand, a 2.7% increase from HK$23,230 thousand in the same period last year[83] - Profit for the period attributable to equity holders of the Company was HK$5,916 thousand, up 9.8% from HK$5,388 thousand in the same period last year[83] - Total comprehensive income for the period was HK$6,255 thousand, a 16.1% increase from HK$5,387 thousand in the same period last year[86] - Profit for the period attributable to equity holders of the Company increased to HK$5,916,000 in 2024 from HK$5,388,000 in 2023[165] Project and Contract Awards - The Group was awarded 6 projects with an original contract sum of approximately HK$586.8 million during the Reporting Period[21] - The total nominal value of completed construction works by major contractors in Hong Kong in Q2 2024 amounted to HK$68.3 billion, a 2.3% increase compared to the same period in 2023[11] - The total amount of piling and related foundation projects in Q1 2024 was HK$469.2 million, a 14.3% decrease compared to the previous year, and further dropped to HK$442.8 million in Q2 2024, reflecting a 20.5% decrease YOY[13] Economic and Infrastructure Outlook - Hong Kong's real GDP increased by 3.3% year-on-year in Q2 2024[10] - The Government forecasts Hong Kong's real GDP growth in 2024 to be within the range of 2.5-3.5%[22] - Annual expenses on infrastructure projects in Hong Kong are expected to average around HK$90 billion, a 17% increase compared to the past five years' average of HK$76 billion per year[23] Financial Costs and Expenses - Administrative expenses rose by HK$3.7 million (26.6%) to HK$17.6 million, primarily due to increased staff costs[36][41] - Finance costs surged by HK$2.0 million (2,000.0%) to HK$2.1 million, driven by higher average borrowings[37][42] - Income tax expense decreased by HK$0.3 million (15.8%) to HK$1.6 million, due to an increase in deferred tax credit[38][43] - Bank loans interest and finance charges on lease liabilities increased to HK$2,111,000 in 2024 from HK$140,000 in 2023[146] - Total income tax expense decreased to HK$1,573,000 in 2024 from HK$1,885,000 in 2023[156] Cash Flow and Financial Position - Total cash, bank balances, and pledged bank deposits decreased to HK$63.4 million from HK$134.0 million, mainly due to increased trade receivables[47] - Short-term bank borrowings and corporate bonds decreased to HK$50.7 million from HK$58.5 million, with a gearing ratio of 19.2%[48] - The Group's cash, bank balances, and pledged bank deposits totaled approximately HK$63.4 million as of 30 September 2024, down from HK$134.0 million as of 31 March 2024, primarily due to an increase in trade receivables[52] - The Group's short-term bank borrowings and corporate bonds amounted to approximately HK$50.7 million as of 30 September 2024, compared to HK$58.5 million as of 31 March 2024[52] - The Group's gearing ratio (total borrowings including lease liabilities divided by total equity) was approximately 19.2% as of 30 September 2024, down from 23.1% as of 31 March 2024[52] - Net cash used in operating activities was HK$73,868,000, compared to HK$11,789,000 generated in the same period last year[115] - Net cash generated from investing activities was HK$273,000, compared to HK$10,279,000 used in the same period last year[115] - Net cash from financing activities was HK$2,027,000, compared to HK$5,051,000 in the same period last year[115] - Cash and cash equivalents at the end of the period were HK$29,051,000, compared to HK$77,643,000 at the end of the same period last year[115] Investments and Capital Expenditures - The Group invested approximately HK$0.3 million in the purchase of property, plant, and equipment during the Reporting Period, all financed by internal resources[58][61] - The Group raised net proceeds of approximately HK$15.0 million from the placing of 240,000,000 shares in August 2024, which were fully utilized for general working capital by October 2024[68][69][72] - Placing of shares generated HK$15,360,000, with transaction costs of HK$309,000[108][109] Staff and Operational Costs - The Group employed 425 full-time employees as of 30 September 2024, up from 338 as of 31 March 2024, with total staff costs of approximately HK$90.7 million for the Reporting Period, compared to HK$63.3 million in the corresponding period of 2023[70][73] - Staff costs (including Directors' remuneration) rose to HK$90,668,000 in 2024 from HK$63,264,000 in 2023[148] - Depreciation expenses decreased to HK$6,427,000 in 2024 from HK$10,424,000 in 2023[148] - Lease charges for short-term office and machinery leases totaled HK$8,928,000 in 2024 compared to HK$12,117,000 in 2023[148] - Cost of sales of construction materials increased to HK$60,998,000 in 2024 from HK$49,290,000 in 2023[148] Share Consolidation and Rights Issue - The Group proposed a share consolidation of every 10 issued shares into 1 consolidated share with a par value of HK$0.10 each, and announced a rights issue to raise up to approximately HK$28.8 million, which was not completed as of the report date[77][78] - The Company announced a share consolidation and rights issue, proposing to consolidate every 10 issued shares into 1 share and issue up to 144,000,000 new shares to raise approximately HK$28.8 million[80] Assets and Liabilities - Current assets as of 30 September 2024 were HK$359,975 thousand, a decrease of 8.3% from HK$392,558 thousand as of 31 March 2024[89] - Net current assets as of 30 September 2024 were HK$268,509 thousand, a 9.4% increase from HK$245,525 thousand as of 31 March 2024[89] - Total assets less current liabilities as of 30 September 2024 were HK$293,167 thousand, a 7.7% increase from HK$272,147 thousand as of 31 March 2024[89] - Equity attributable to equity holders of the Company as of 30 September 2024 was HK$288,708 thousand, an 8.0% increase from HK$267,497 thousand as of 31 March 2024[92] - The Group's reserves increased to HK$274,308,000 as at 30 September 2024, compared to HK$255,497,000 as at 31 March 2024[110] - Total property, plant, and equipment net book value as of 30 September 2024 is HK$20,168,000, compared to HK$21,712,000 as of 31 March 2024[173] - Right-of-use assets for office premises and motor vehicles as of 30 September 2024 are HK$4,080,000 and HK$452,000 respectively, compared to HK$649,000 and HK$570,000 as of 31 March 2024[183][184] - Investment property carrying amount decreased to HK$3,490,000 as of 30 September 2024 from HK$3,910,000 as of 31 March 2024[189] - Trade receivables from third parties as of 30 September 2024 are HK$74,829,000, with an ECL allowance of HK$732,000[194] - Prepayment for purchasing materials as of 30 September 2024 is HK$3,735,000, compared to HK$408,000 as of 31 March 2024[195] - Trade receivables credit terms range from 28 to 90 days, consistent with the previous period (31 March 2024)[198] - ECL allowance for trade receivables as of 30 September 2024 is HK$732,000, significantly higher than the audited HK$27,000 as of 31 March 2024[200] - ECL rates for trade receivables are used as a reasonable approximation for contract assets due to shared credit risk characteristics[199] - ECL allowance estimation incorporates historical default experience, debtor financial position analysis, and forward-looking information[200] Other Income and Expenses - Other gains increased by HK$2.5 million (192.3%) to HK$1.2 million, mainly due to new consultancy fee income and exchange difference gains[35][40] - Net losses from changes in fair value on investment property were HK$420 thousand, while consultancy fee income was HK$625 thousand[144] - Rental income and interest income were HK$84 thousand and HK$563 thousand, respectively, with a net exchange difference of HK$303 thousand[144] - Interest received from investing activities was HK$563,000[115] - Outgoings for investment property were HK$50,609,000 in 2024, with no comparable figure in 2023[148] Dividend and Share Information - No interim dividend was paid or declared during the six months ended 30 September 2024[160] - Weighted average number of ordinary shares increased to 1,440,000,000 in 2024 from 1,200,000,000 in 2023[165] Company Address Change - The Company's registered office and principal place of business changed to Unit 09, 28/F, North Tower, Concordia Plaza, 1 Science Museum Road, Tsim Sha Tsui, Kowloon, Hong Kong, effective from 13 May 2024[117] Revenue Breakdown - Contracting revenue accounted for HK$418,071 thousand of the total revenue, while sales of construction materials contributed HK$53,759 thousand[129] - Revenue from major customers: Customer B contributed HK$128,507 thousand, Customer C contributed HK$156,207 thousand, and Customer D contributed HK$94,396 thousand[139]
龙昇集团控股(06829) - 2025 - 中期财报