Financial Performance - Revenue for the six months ended October 31, 2024, was HKD 46,797,000, compared to HKD 46,474,000 for the same period in 2023, representing a slight increase of 0.7%[8]. - Gross profit for the period was HKD 33,466,000, up from HKD 26,264,000, indicating a significant increase of 27.0%[1]. - The company reported a net profit attributable to owners of HKD 30,486,000 for the six months, compared to a loss of HKD 11,740,000 in the previous year, marking a turnaround[14]. - The basic and diluted earnings per share for the period were HKD 0.212, compared to a loss per share of HKD (0.082) in the previous year[16]. - Other comprehensive income for the period included a fair value gain of HKD 1,080,000, compared to a loss of HKD (440,000) in the prior period[16]. - The group reported a total loss before tax of HKD 10,699,000 for the six months ended October 31, 2024, compared to a profit of HKD 23,020,000 in the same period of 2023[51]. - The company reported a profit of HKD 30,486 thousand for the six months ended October 31, 2024, compared to a loss of HKD (11,740) thousand in the same period of 2023[61]. - The increase in revenue was primarily driven by growth in the lending business during the reporting period[87]. Expenses and Liabilities - Operating and administrative expenses decreased to HKD (7,566,000) from HKD (10,303,000), reflecting a reduction of 26.7%[1]. - The group’s financing costs for the six months ended October 31, 2024, were HKD 3,251,000, compared to HKD 4,762,000 in the previous year[44]. - The group’s total liabilities decreased from HKD 18,000,000 in 2023 to HKD 147,000 in 2024, reflecting a significant reduction in debt obligations[26]. - Tax expenses for the period amounted to HKD 2,215 thousand, up from HKD 1,041 thousand in the previous year, reflecting a 112.5% increase[60]. - The group’s net cash used in financing activities was HKD 3,980,000 for the six months ended October 31, 2024, compared to a net cash generated of HKD 14,094,000 in 2023[26]. Assets and Equity - The company’s total assets as of October 31, 2024, were HKD 416,567,000, compared to HKD 384,680,000 as of April 30, 2024, showing an increase of 8.3%[18]. - The company’s equity attributable to owners increased to HKD 415,443,000 from HKD 383,877,000, an increase of 8.2%[21]. - As of October 31, 2024, the group's total equity was approximately HKD 415.4 million, up from approximately HKD 383.9 million on April 30, 2024[112]. - The total value of the investment portfolio as of October 31, 2024, was approximately HKD 63.4 million, compared to approximately HKD 48.8 million on April 30, 2024, with a net fair value gain of approximately HKD 21.4 million during the reporting period[113]. Cash Flow - For the six months ended October 31, 2024, the net cash generated from operating activities was HKD 2,904,000, compared to a net cash used of HKD 15,452,000 in the same period of 2023[26]. - The cash and cash equivalents at the end of the period were HKD 17,409,000, a decrease from HKD 17,175,000 at the end of October 31, 2023[26]. - The company’s cash and cash equivalents stood at HKD 17,409,000, down from HKD 18,480,000, a decrease of 5.8%[18]. Business Segments - The group has three operating segments: construction services, lending business, and securities investment, with a focus on resource allocation and performance evaluation[47]. - The scaffolding services segment generated revenue of approximately HKD 17,300,000, a decrease of about HKD 5,600,000 compared to the previous year, due to a reduction in new contracts[88]. - The group provided scaffolding services for 36 ongoing projects, with 26 completed on schedule and 3 new contracts secured during the reporting period[89]. - The group’s lending business is operated by its wholly-owned subsidiary, Kingway Hong Kong Limited, which is a licensed money lender under Hong Kong law[93]. Credit Loss and Impairment - The expected credit loss recognized under the model was a net impairment loss of HKD (11,702,000), an improvement from HKD (25,507,000) in the prior period[7]. - The net impairment loss recognized under the expected credit loss model for receivables was HKD (11,702) thousand for the six months ended October 31, 2024, compared to HKD (25,507) thousand for the same period in 2023, indicating a 54.1% decrease[58]. - The expected credit loss from receivables is approximately HKD 8,500,000, a significant decrease from HKD 38,000,000 in the same period last year[104]. Corporate Governance - The audit committee is responsible for reviewing the company's annual reports, half-year reports, and quarterly reports, ensuring compliance with applicable accounting standards and legal requirements[142]. - The company has established an audit committee composed of three independent non-executive directors[145]. - The company has adhered to the corporate governance code as per GEM listing rules, with some deviations noted[141]. - The roles of the chairman and CEO are not combined, ensuring a balance of power within the board[144]. Employee and Management - The group’s short-term employee benefits for the six months ending October 31, 2024, amounted to HKD 1,386,000, down from HKD 2,459,000 in the previous year[85]. - The company has implemented a stock option plan to incentivize employees and contributors to the group's development[125]. - No stock options were granted, exercised, canceled, expired, or remained unexercised during the reporting period[129]. - The company has not entered into any management or administrative contracts related to any significant part of its business as of October 31, 2024[131]. Future Outlook - The group will continue to focus on high-margin and growth-potential business segments, such as the lending business[116]. - The group is reviewing its current asset structure and business strategy to adapt to future uncertainties[116]. - The group aims to diversify its business scope and promote overall development in line with government strategies in property construction and infrastructure investment[110].
汇隆控股(08021) - 2025 - 中期财报