Financial Performance - Revenue for the six months ended September 30, 2024, was HK$3.269 million, a significant decrease from HK$186.922 million in the same period in 2023[2] - Gross profit for the period was HK$2.508 million, down from HK$20.681 million in 2023[2] - The company reported a net loss of HK$4.424 million for the six months ended September 30, 2024, compared to a net profit of HK$10.669 million in the same period in 2023[2] - Total revenue and other income decreased from HK$187.158 million in 2023 to HK$3.542 million in 2024[39] - Pre-tax loss of HK$4.424 million in 2024 compared to a pre-tax profit of HK$10.669 million in 2023[36] - Total revenue for the period decreased to approximately 3.3 million HKD from 186.9 million HKD, with 2.4 million HKD coming from the funds lending business (2023: 2.8 million HKD)[65] - The construction business segment recorded a loss of approximately 1.3 million HKD, compared to a profit of 13.9 million HKD in the same period last year[65] - The funds lending business segment profit increased by 22.2% to approximately 1.1 million HKD (2023: 900,000 HKD)[65] Assets and Liabilities - Total assets as of September 30, 2024, were HK$275.743 million, slightly up from HK$266.776 million as of March 31, 2024[9] - Total liabilities as of September 30, 2024, were HK$106.699 million, down from HK$112.715 million as of March 31, 2024[12] - Net current assets increased to HK$169.044 million as of September 30, 2024, from HK$154.061 million as of March 31, 2024[12] - The company's equity attributable to owners was HK$199.772 million as of September 30, 2024, down from HK$204.116 million as of March 31, 2024[12] - Non-current assets totaled HK$22.326 million as of September 30, 2024, compared to HK$41.696 million as of March 31, 2024[9] - The company's total equity decreased to HK$188.435 million as of September 30, 2024, from HK$192.859 million as of March 31, 2024[12] - As of September 30, 2024, the company's cash and bank balances were approximately 2.3 million HKD (March 31, 2024: 4.4 million HKD), and net assets were approximately 188.4 million HKD (March 31, 2024: 192.9 million HKD)[68] - The capital gearing ratio as of September 30, 2024, was 0.05 (March 31, 2024: 0.05), with total bank and other borrowings of approximately 10 million HKD (March 31, 2024: 12 million HKD) against shareholders' funds of approximately 199.8 million HKD (March 31, 2024: 204.1 million HKD)[68] Cash Flow - Net cash used in operating activities decreased significantly from HK$12.557 million in 2023 to HK$292 thousand in 2024[25] - Net cash from investing activities decreased from HK$490 thousand in 2023 to HK$273 thousand in 2024[25] - Net cash used in financing activities increased from HK$1.764 million in 2023 to HK$2.079 million in 2024[25] - Total cash and cash equivalents decreased from HK$6.961 million in 2023 to HK$2.329 million in 2024[25] - Cash and cash equivalents stood at HK$2.329 million as of September 30, 2024[9] Segment Performance - Revenue from the construction segment dropped sharply from HK$184.1 million in 2023 to HK$820 thousand in 2024[36] - Revenue from the loan financing segment decreased slightly from HK$2.822 million in 2023 to HK$2.449 million in 2024[36] - Construction costs decreased significantly from HK$166.241 million in 2023 to HK$761 thousand in 2024[41] Business Opportunities and Projects - The company identified 10 potential projects in Hong Kong with an approximate total contract value of 580 million HKD and 8 potential projects in Macau with an approximate total contract value of 152 million HKD[65] - The company is actively exploring potential opportunities in Hong Kong and Macau, including construction maintenance and scaffolding projects, and is also in discussions for potential business opportunities in the Indonesian market[66] Corporate Governance and Shareholding - The company's Chairman, Mr. Tong Yicheng, also serves as the CEO, deviating from the corporate governance code which recommends separating these roles[77] - Major shareholder Xu Jiao holds 450,000,000 ordinary shares, representing approximately 22.73% of the issued share capital[73] - Major shareholder Juedao Asset Investment Co., Ltd. holds 400,000,000 ordinary shares, representing approximately 20.20% of the issued share capital[73] - The company has not purchased, sold, or redeemed any listed securities during the period[80] Employee and Expenses - Employee benefit expenses decreased from HK$4.373 million in 2023 to HK$3.760 million in 2024[41] - The company has 10 employees as of September 30, 2024, with no change from March 31, 2024[71] - The company's employees in Hong Kong are covered by a mandatory provident fund scheme, while employees in China are members of the national retirement benefit plan[71] Audit and Financial Controls - The Audit Committee reviewed the unaudited condensed consolidated financial statements and expressed satisfaction with the accounting principles and internal control systems[78] Foreign Exchange and Risk Management - The company has no significant foreign exchange risk as almost all transactions and confirmed financial assets and liabilities are denominated in HKD or RMB[69] - The company has no foreign exchange hedging policy but will monitor foreign exchange risks as necessary[69] Dividends and Recommendations - The company does not recommend paying any dividends for the current period[70]
志道国际(01220) - 2025 - 中期财报