Financial Performance - Revenue for the six months ended December 31, 2024, was HKD 46,244,000, representing a 50.2% increase from HKD 30,804,000 for the same period in 2023[6]. - Gross profit for the same period was HKD 2,752,000, up 49.8% from HKD 1,839,000 in the previous year[6]. - The operating loss decreased slightly to HKD 7,301,000 from HKD 7,461,000 year-on-year, indicating improved operational efficiency[6]. - The loss before tax was HKD 6,968,000, a significant reduction from HKD 16,546,000 in the prior period, reflecting a 58.1% improvement[6]. - Basic and diluted loss per share improved to HKD 0.88 from HKD 2.08, marking a 57.7% reduction in loss per share[6]. - The company reported a net loss attributable to owners of the company of HKD 6,968,000, down from HKD 16,543,000 in the previous period, reflecting improved financial health[8]. - The loss attributable to owners for the six months ended December 31, 2024, was approximately HKD 7.0 million, a decrease from about HKD 16.5 million for the same period in 2023[49]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the period increased to HKD 18,935,000 from HKD 17,085,000, showing a positive cash flow trend[10]. - Net cash used in operating activities was HKD 11,507,000, compared to HKD 225,000 in the previous year, indicating increased operational cash outflow[10]. - As of December 31, 2024, the group maintained a strong liquidity position with cash and bank balances of approximately HKD 18.9 million, up from HKD 17.1 million as of June 30, 2024[51]. - The current ratio improved to approximately 2.5 times as of December 31, 2024, compared to 1.9 times as of June 30, 2024[51]. - The group had no outstanding interest-bearing borrowings as of December 31, 2024, resulting in a debt-to-equity ratio of zero[52]. Operational Highlights - The company continues to focus on property construction services in Hong Kong, aiming for market expansion and operational improvements[13]. - The group submitted 17 construction project bids valued at approximately HKD 751.8 million during the reporting period[41]. - Revenue from major customers showed fluctuations, with Customer A contributing HKD 4,995,000 in 2024, up from HKD 373,000 in 2023, while Customer E generated HKD 34,315,000, which was not present in the previous year[21]. Expenses and Costs - Total employee costs increased to HKD 8,759,000 in the first half of 2024 from HKD 8,107,000 in the same period of 2023, reflecting a rise in operational expenses[24]. - Direct costs rose by approximately 50.0% from about HKD 29.0 million to about HKD 43.5 million during the same periods[45]. - Administrative expenses slightly increased by approximately 2.0% from about HKD 10.0 million to about HKD 10.2 million[47]. - The employee costs for the six months ended December 31, 2024, amounted to approximately HKD 8.8 million, an increase from HKD 8.1 million for the same period in 2023[66]. Assets and Liabilities - Total assets decreased to HKD 139,042,000 from HKD 136,462,000, while total liabilities also decreased, leading to a stable asset-liability ratio[7]. - The total assets as of December 31, 2024, were approximately HKD 101.9 million, down from HKD 136.5 million as of June 30, 2024[51]. - Trade receivables aged 0 to 30 days amounted to HKD 13,062,000 as of December 31, 2024, down from HKD 28,290,000 as of June 30, 2024, suggesting a reduction in short-term receivables[30]. - The group’s total assets related to property, plant, and equipment remained stable at HKD 6,058,000 as of December 31, 2024, with no new acquisitions reported during the period[29]. Dividends and Share Capital - The group did not declare an interim dividend for the six months ended December 31, 2024, consistent with the previous year[26]. - The company did not recommend the payment of an interim dividend for the six months ended December 31, 2024[81]. - As of December 31, 2024, the company's issued share capital is HKD 7,959,400, with a total of 795,940,000 shares issued at a par value of HKD 0.01 per share[58]. - The average number of shares outstanding for calculating basic and diluted loss per share remained unchanged at 795,940 shares for both periods[28]. - The company issued 127,350,000 ordinary shares at a price of HKD 0.019 per share, raising approximately HKD 2,400,000 for general working capital[84]. Legal and Contingent Liabilities - The company is involved in a legal case regarding overdue loans amounting to HKD 15 million, with a favorable court ruling received on July 19, 2023[62]. - The company has a contingent liability of approximately HKD 20 million in performance guarantees provided to third parties[65]. Investments and Acquisitions - The company agreed to acquire a 45% stake in Tianxiang Construction Group for a maximum consideration of HKD 4.5 million[68]. - The company has no significant investments or capital asset plans as of December 31, 2024[61]. - The company has no capital commitments as of December 31, 2024[59]. Risk Management - The company has no significant foreign exchange risk as all income-generating activities and borrowings are conducted in HKD[57]. - The group’s financing costs, specifically interest on lease liabilities, remained consistent at HKD 67,000 for both periods under review[23]. - The group did not incur any taxable profits during the reporting period, resulting in no income tax provision being made[25]. Ownership Structure - Best Brain holds a beneficial ownership of 250,000,000 shares, representing 31.41% of the total issued share capital as of December 31, 2024[74]. - Mr. Gao Junxi holds a beneficial ownership of 67,400,000 shares, representing 8.47% of the total issued share capital as of December 31, 2024[74]. Audit and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited condensed consolidated results for the six months ended December 31, 2024, ensuring compliance with applicable accounting standards and GEM listing rules[87].
宏强控股(08262) - 2025 - 中期业绩