Financial Performance - Total revenue decreased by approximately HKD 111.8 million or 20.6% to about HKD 432.1 million for the six months ended September 30, 2024, compared to HKD 543.9 million for the same period in 2023[10]. - Profit attributable to owners increased by approximately HKD 16.1 million or 243.9% to about HKD 9.5 million, primarily due to unrealized fair value gains of approximately HKD 15.7 million on financial assets[10]. - Gross profit decreased by approximately HKD 8.5 million or 85% to about HKD 1.5 million, with gross margin dropping from approximately 1.8% to about 0.3%[23]. - Revenue for the six months ended September 30, 2024, was HKD 432,088,000, a decrease of 20.6% compared to HKD 543,918,000 for the same period in 2023[70]. - Gross profit for the same period was HKD 1,496,000, down 85.1% from HKD 10,023,000 in 2023[70]. - The company reported a profit before tax of HKD 9,453,000, compared to a loss of HKD 6,552,000 in the previous year[70]. - The company reported a profit of HKD 9,453,000 for the six months ended September 30, 2024, compared to a loss of HKD 6,552,000 in the same period in 2023, indicating a significant turnaround[139]. Revenue Sources - Revenue from private sector projects was approximately HKD 324.7 million, accounting for about 75.1% of total revenue, while public sector project revenue was approximately HKD 107.4 million, accounting for about 24.9%[10]. - The group received 10 new tenders with a total contract value of approximately HKD 332.0 million during the reporting period[11]. Expenses and Cost Management - Other income increased by approximately HKD 24.2 million to about HKD 19.8 million, mainly due to fair value changes in financial assets[24]. - Administrative expenses decreased by approximately 2.1% to about HKD 9.3 million, attributed to reduced headquarters operating expenses[25]. - The group continues to focus on expanding its customer base and implementing strict cost control measures on existing projects[16]. - The overall economic environment has negatively impacted the group's gross margin, cash flow, and operational efficiency[11]. Cash Flow and Financial Position - As of September 30, 2024, the group had cash and cash equivalents of approximately HKD 90.2 million, a decrease of about 46.7% from HKD 169.3 million as of March 31, 2024, primarily due to increased direct costs and delays in project completion[30]. - The capital-to-equity ratio as of September 30, 2024, was approximately 114.7%, down from about 125.4% as of March 31, 2024[30]. - The total assets decreased to HKD 381,037,000 as of September 30, 2024, from HKD 483,879,000 as of March 31, 2024[72]. - Cash and cash equivalents at the end of the period were HKD 90,210,000, down from HKD 169,308,000 at the beginning of the period[82]. - The net cash used in operating activities was HKD (79,074,000), compared to HKD (20,726,000) in the previous year[82]. - The total equity as of September 30, 2024, was HKD 131,754,000, an increase from HKD 122,301,000 as of March 31, 2024[72]. Employee and Management Information - The group employed 1,578 employees as of September 30, 2024, a decrease from 1,885 employees as of September 30, 2023, primarily due to the completion phase of template engineering projects[49]. - Total salary costs recognized in the profit and loss for the six months ended September 30, 2024, amounted to approximately HKD 263.3 million, compared to approximately HKD 294.7 million for the same period in 2023, reflecting a decrease of about 10.6%[49]. - The short-term employee benefits for key management personnel increased to HKD 3,394,000, up 3.5% from HKD 3,278,000 in the previous year[164]. Corporate Governance and Compliance - The company has adopted the corporate governance code as per the listing rules and confirmed compliance for the six months ended September 30, 2024[52]. - The audit committee, consisting of three independent non-executive directors, has reviewed the accounting principles and policies adopted by the group for the six months ended September 30, 2024[55]. - The company will continue to review and monitor its corporate governance practices to maintain and improve standards[52]. Shareholder Information - Major shareholders, including Mr. Leung and Ms. Chao, hold 75% of the issued share capital, with Mr. Leung having a controlled corporation interest of 1,125,000,000 shares[61]. - The average number of ordinary shares outstanding remained stable at 1,500,000,000 shares[136]. - The issued and fully paid ordinary shares remain at 1,500,000 shares with a total value of HKD 15,000,000 as of September 30, 2024[159]. Asset and Liability Management - The group did not have any bank borrowings as of September 30, 2024, consistent with the previous period[30]. - The group has not pledged any assets as of September 30, 2024[32]. - The group has no significant capital commitments as of September 30, 2024[33]. - The group has no significant contingent liabilities as of September 30, 2024[34]. - Trade receivables increased to HKD 59,827,000 from HKD 41,111,000, representing a growth of about 45.5%[143]. - The company's financial assets at fair value through profit or loss rose to HKD 66,321,000 from HKD 50,595,000, an increase of approximately 31.1%[142]. - Contract assets decreased to HKD 137,441,000 from HKD 183,849,000, a decline of about 25.3%[147]. - Trade payables decreased significantly to HKD 16,382,000 from HKD 39,120,000, a reduction of approximately 58.2%[150]. Other Notable Information - The company did not enter into any derivative contracts to hedge foreign exchange risks for the six months ended September 30, 2024, as the board believes that foreign exchange risk is not significant[47]. - There were no significant acquisitions or disposals of subsidiaries or associates during the reporting period[48]. - The company has not reported any new product or technology developments during the reporting period[48]. - The company did not declare any dividends for the interim period, consistent with the previous year[138]. - The company has not purchased, sold, or redeemed any of its securities during the six months ended September 30, 2024[66]. - The company did not recognize any Hong Kong profits tax provision for the six months ended September 30, 2024, due to available losses carried forward[133].
建成控股(01630) - 2025 - 中期财报