Revenue and Financial Performance - The Group's overall revenue decreased by 0.6% from approximately HK$75,549,000 during the six months ended 30 September 2023 to approximately HK$75,068,000 during the Period[17]. - The decrease in overall revenue was mainly due to a reduction in work done after the completion of certain large projects during the Period[17]. - Revenue for the six months ended September 30, 2024, was HK$75,068,000, a decrease from HK$75,549,000 in the same period of 2023, representing a decline of 0.6%[108]. - The Group reported a loss of approximately HKD 44,825,000 for the six months ended 30 September 2024[134]. - Loss for the period increased to HK$44,825,000 from HK$23,524,000 in 2023, reflecting a rise of 90.0%[111]. - Basic loss per share for the period was 9.3 cents, compared to 5.9 cents in the previous year, representing a deterioration of 57.6%[111]. - The Group reported a total comprehensive loss of HK$ (183,762) thousand as of 30 September 2024, compared to HK$ (138,937) thousand as of 1 April 2024[119]. - The Group's overall gross loss decreased by 78.7% from approximately HK$51,192,000 to approximately HK$10,914,000, with the gross loss margin dropping from approximately 67.8% to about 14.5%[19]. Expenses and Costs - Administrative and other operating expenses increased by 16.3% from approximately HK$19,941,000 to approximately HK$23,190,000 during the Period[21]. - Finance costs decreased by 94.3% from approximately HK$7,189,000 to approximately HK$409,000, primarily due to the absence of imputed interest expenses and reduced interest on bank borrowings[26]. - An additional provision for expected credit loss of approximately HK$6,406,000 was recognized during the Period, attributed to the deteriorating operating environment in the construction industry[25]. - Employee benefits expense, including directors' remuneration, amounted to HK$20,874,000 for the six months ended 30 September 2024, up from HK$18,000,000 in 2023, marking an increase of approximately 16%[187]. - The Group's depreciation charge for property, plant, and equipment was HK$850,000 for the six months ended 30 September 2024, compared to HK$1,306,000 in 2023, indicating a decrease of about 35%[187]. Assets and Liabilities - The total debts of the Group as of 30 September 2024 amounted to approximately HK$17,993,000, down from HK$25,667,000 as of 31 March 2024[42]. - The Group's bank and cash balances were approximately HK$72,123,000 as of 30 September 2024, down from approximately HK$84,497,000 as of 31 March 2024[50]. - The current ratio of the Group was 0.6 as of 30 September 2024, compared to 0.8 as of 31 March 2024[50]. - Net current liabilities increased from HK$38,275,000 to HK$72,778,000, indicating a worsening of 90.0%[113]. - The company reported an impairment of property, plant, and equipment amounting to HK$3,050,000 for the period[108]. - The Group's net current liabilities amounted to approximately HKD 72,778,000 and net liabilities were approximately HKD 70,152,000[134]. Projects and Business Development - As of 30 September 2024, there were 4 active projects, with 2 completed and 2 ongoing[12]. - One new project was awarded during the twelve months ended 30 September 2024, resulting in a total of 3 projects in progress as of 30 September 2024[12]. - The Group commenced sales of chemical products to diversify income streams and business risks starting from the third quarter of 2023[12]. - The Group has secured decoration contracts worth over RMB 5 million in the People's Republic of China, indicating progress in market expansion[36]. - The Group plans to acquire a company with N-Methyl2-pyrrolidone recycling facilities to expand into the environmental protection sector[37]. Governance and Compliance - The Board does not recommend the payment of an interim dividend to shareholders for the period[69]. - The Company has adopted the Model Code for Securities Transactions by Directors and all Directors confirmed compliance throughout the period[80]. - The Company did not establish a standalone internal audit department during the period but implemented measures for internal control and risk management[72]. - There were no significant contingent liabilities or major litigations as of September 30, 2024[61]. Market Outlook - The Board remains cautiously optimistic about the prospects of the foundation industry in Hong Kong due to long-term housing development and land policy[38]. - The Directors believe that the Group will have sufficient working capital to finance its operations and meet financial obligations for at least the next 12 months from 30 September 2024[137]. - The Company has obtained a letter of financial support from Mr. Chen Rongsheng, the ultimate controlling party, to provide adequate financial resources[137].
剑虹集团控股(01557) - 2025 - 中期财报