Financial Performance - Revenue decreased from approximately HK$282.8 million for the six months ended 30 September 2023 to approximately HK$265.3 million for the six months ended 30 September 2024, representing a decrease of approximately HK$17.5 million or 6.2% [10] - Gross profit decreased from approximately HK$29.3 million for the six months ended 30 September 2023 to approximately HK$2.9 million for the six months ended 30 September 2024, representing a decrease of approximately HK$26.4 million or 90.2% [11] - The Group recorded a loss attributable to owners of the Company of approximately HK$7.2 million for the six months ended 30 September 2024, compared to a profit of approximately HK$16.6 million for the same period in 2023 [12] - Basic loss per share attributable to owners of the Company was approximately HK0.7 cents for the six months ended 30 September 2024, compared to basic earnings per share of approximately HK1.7 cents for the same period in 2023 [13] - The total comprehensive loss attributable to owners of the Company for the period was HK$7,164,000, compared to a profit of HK$16,614,000 in the same period last year [150]. - Operating loss for the six months was HK$7,962,000, compared to an operating profit of HK$19,050,000 in the previous year [150]. - Loss before income tax expense was HK$7,168,000, a decrease from a profit of HK$19,789,000 in the prior period [150]. Dividends and Shareholder Returns - The Board has resolved not to recommend the declaration of an interim dividend for the six months ended 30 September 2024 and 2023 [13]. - The company has resolved not to declare an interim dividend for the six months ended 30 September 2024 and 2023 [94]. Market Conditions and Strategic Initiatives - The Group faced a decline in project opportunities and contracts due to decreasing demand for new construction projects in the Hong Kong real estate market [18]. - The Group is exploring opportunities in the fitting-out sector to strengthen its income source and diversify risk [19]. - The strategic move into the fitting-out sector aims to provide new revenue opportunities and promote long-term business sustainability [19]. - The Group is seeking to strengthen its revenue source by venturing into the Southeast Asian market, capitalizing on the region's economic growth and construction demands [25]. - The Group successfully entered the Cambodian market and was awarded a construction project there [26]. Financial Position and Liquidity - As of September 30, 2024, the Group maintained a liquidity position with net current assets of approximately HK$315.0 million, cash and cash equivalents of approximately HK$66.8 million, and no short-term bank deposits [49]. - Bank borrowings amounted to approximately HK$14.1 million as of September 30, 2024, compared to nil as of March 31, 2024 [56]. - The gearing ratio was approximately 4.4% as of September 30, 2024, up from nil as of March 31, 2024 [57]. - The company adopted a prudent financial management approach towards its treasury policy, ensuring liquidity requirements are met [59]. Expenses and Cost Management - The cost of services increased from approximately HK$253.6 million for the six months ended 30 September 2023 to approximately HK$262.4 million for the six months ended 30 September 2024, representing an increase of approximately HK$8.9 million or 3.5% [34]. - The administrative expenses increased from approximately HK$9.9 million for the six months ended 30 September 2023 to approximately HK$10.7 million for the six months ended 30 September 2024, representing an increase of approximately HK$0.8 million or 7.6% [39]. - Employee benefit expenses for the six months ended September 30, 2024, were approximately HK$18,885,000, up from HK$12,251,000 in the same period of 2023, reflecting a 54.5% increase [199]. - Depreciation of plant and equipment increased to HK$24,315,000 for the six months ended September 30, 2024, compared to HK$16,613,000 in 2023, representing a 46.4% rise [198]. Assets and Liabilities - Total assets as of September 30, 2024, amounted to HK$368,638,000, a decrease of 4.9% from HK$384,588,000 as of March 31, 2024 [154]. - Current assets increased to HK$364,649,000 from HK$379,769,000, primarily driven by an increase in trade receivables to HK$80,465,000 from HK$76,038,000 [154]. - Total liabilities decreased to HK$49,983,000 from HK$58,769,000, with a notable reduction in trade payables from HK$33,230,000 to HK$14,069,000 [154]. - The company reported a decrease in retained earnings to HK$203,299,000 from HK$210,463,000, indicating a decline in profitability [156]. Governance and Compliance - The company has complied with the Corporate Governance Code during the reporting period, maintaining high standards of governance [96]. - The Audit Committee reviewed the interim financial results and confirmed compliance with applicable accounting standards and Listing Rules [141]. - The company maintains compliance with corporate governance standards as outlined in its interim report [118]. Shareholder Information - Mr. Chan Kiu Sum holds a 72.89% interest in the company, reflecting significant ownership [109]. - As of September 30, 2024, Mr. Chan Wing Ping holds 728,880,000 shares in Evolve Billion Limited, representing a 72.89% interest [129]. - The interests of directors and chief executives in the company's shares were fully disclosed as required by the SFO [113]. Financial Reporting and Accounting Policies - The Group's financial reporting is based on Hong Kong Financial Reporting Standards, ensuring compliance with local regulations [166]. - The unaudited interim financial statements have not been audited or reviewed by external auditors but have been reviewed by the Company's audit committee [172]. - The Group's financial estimates and judgments are consistent with those applied in the preparation of the annual audited consolidated financial statements for the year ended March 31, 2024 [179].
GC CONSTRUCTION(01489) - 2025 - 中期财报