Hong Kong Residential Property Market - The overall residential property market in Hong Kong experienced a 43% decline in transaction volume in Q3 compared to the previous quarter, totaling 10,225 transactions, although this represents an 11% increase year-on-year [9]. - The overall property prices in Q3 decreased by 5%, reflecting ongoing challenges in the local real estate market [9]. - The forecast for the Hong Kong residential property market in 2025 predicts a moderate recovery, with overall price increases expected to range from 0% to 5% and transaction volume projected to grow by approximately 10% [10]. - The company noted that the overall business environment in the local real estate and construction sectors remains challenging due to high interest rates and weak purchasing power [9]. - The company observed that the demand from mainland buyers remains below expectations, further impacting the Hong Kong real estate market [12]. - The government has initiated infrastructure-related measures in the 2024-25 budget, which are expected to provide growth opportunities for the real estate market and construction industry [13]. Financial Performance - Revenue for the six months ended December 31, 2024, decreased by approximately 19.3% to HKD 39.9 million from HKD 49.5 million in the same period of 2023 [20]. - Gross profit for the same period decreased by approximately 10.9% to HKD 21.2 million from HKD 23.8 million [24]. - Net profit attributable to shareholders decreased by approximately 28.4% to HKD 9.9 million from HKD 13.8 million [28]. - The pre-tax profit for the six months ended December 31, 2024, was HKD 11.202 million, a decline of 34.6% from HKD 17.162 million in the previous year [60]. - The company reported a net profit of HKD 9.904 million for the six months ended December 31, 2024, compared to HKD 13.862 million for the same period in 2023, reflecting a decrease of 28.8% [60]. - Basic earnings per share for the six months ended December 31, 2024, were HKD 1.24, down from HKD 1.73 in the previous year, representing a decline of 28.3% [60]. Cost and Expenses - Administrative expenses increased by approximately 10.2% to HKD 11.4 million due to higher employee costs [27]. - The group’s total employee costs for the six months ended December 31, 2024, were 12,696,000 HKD, a decrease from 13,292,000 HKD in the same period of 2023, representing a reduction of approximately 4.5% [93]. - Other income decreased by approximately 18.4% to HKD 3.1 million, primarily due to a reduction in service fees [25]. - The group experienced a net foreign exchange loss of 1,630,000 HKD for the six months ended December 31, 2024, compared to a loss of 15,000 HKD in the same period of 2023 [90]. Assets and Liabilities - Non-current assets decreased from HKD 11,697,000 to HKD 7,989,000, a reduction of approximately 31.5% [62]. - Current assets increased slightly from HKD 196,197,000 to HKD 200,140,000, an increase of about 2% [62]. - The net current asset value rose from HKD 169,108,000 to HKD 181,902,000, reflecting an increase of approximately 7.6% [62]. - The company’s total liabilities decreased from HKD 27,089,000 to HKD 18,238,000, a reduction of approximately 32.7% [62]. - The total cash and cash equivalents decreased from HKD 51,309,000 to HKD 37,807,000, a decline of about 26.3% [71]. Investment and R&D - The group plans to invest HKD 2.4 million in R&D to enhance the quality and cost-effectiveness of existing services, with a focus on reducing indirect costs and maintenance time [46]. - A qualified technician will be hired for the R&D team, with an allocation of HKD 0.4 million for this purpose [46]. - The company aims to develop prototypes for two next-generation machines, with an investment of HKD 0.9 million allocated for this initiative [46]. - The group is exploring methods to improve automation efficiency, with HKD 0.2 million earmarked for the development of new self-developed CNC bending and threading machines [46]. Corporate Governance and Compliance - The company has maintained high standards of corporate governance and transparency, adhering to the GEM Listing Rules [148]. - The audit committee, consisting of three independent non-executive directors, has reviewed the unaudited consolidated financial results for the period and confirmed compliance with applicable accounting standards [153]. - The company has confirmed compliance with non-competition commitments as of June 30, 2024, by key individuals including Jianxin Creative Limited and its associated parties [145]. Shareholder Information - Major shareholders include Jianxin Creative Limited with 199,303,415 shares (24.9%) and Wang Wanbao with 51,230,244 shares (6.4%) as of December 31, 2024 [136]. - The total issued and paid-up shares as of December 31, 2024, is 800 million, with a nominal value of HKD 0.0001 per share [126]. - The company does not recommend the payment of an interim dividend for the period ending December 31, 2023 [139].
人和科技(08140) - 2025 - 中期财报