Revenue Performance - Revenue for the six months ended December 31, 2024, was S$10,556,175, representing a 27.5% increase from S$8,276,252 in the same period of 2023[11]. - Revenue from external customers for the six months ended December 31, 2023, was S$8,276,252, an increase from S$7,593,283 in the same period of 2022, representing a growth of approximately 9%[46]. - Revenue from Singapore accounted for 94% of total revenue for the six months ended December 31, 2024, up from 92% in 2023[50]. - Major customers contributing over 10% of total revenue included Customer A with S$1,564,770, Customer B with S$2,595,056, and Customer C with S$3,556,622 for the six months ended December 31, 2024[48]. - Revenue from integrated designs and building services was S$9,235,945 for the six months ended December 31, 2024, compared to S$7,114,902 in 2023, indicating a growth of approximately 30%[54]. - The Group's revenue for the six months ended December 31, 2024, was approximately S$10.6 million, an increase of about S$2.3 million or 27.5% compared to S$8.3 million for the same period in 2023[169]. - Revenue from integrated designs and building services was approximately S$9.2 million for the six months ended December 31, 2024, an increase of approximately S$2.1 million, or 29.8%, compared to S$7.1 million for the same period in 2023[200]. Profitability and Losses - Gross profit decreased to S$2,884,492, down 26.6% from S$3,932,617 year-over-year[11]. - Loss before taxation for the period was S$7,558,257, compared to a loss of S$6,760,605 in the previous year, indicating a 11.8% increase in losses[11]. - Total comprehensive loss for the period amounted to S$7,588,838, which is a 10.3% increase from S$6,881,750 in the prior year[11]. - Basic and diluted loss per share was 0.70 Singapore cents, compared to 0.65 Singapore cents in the previous year, reflecting a 7.7% increase in loss per share[13]. - The company reported a loss for the period attributable to owners of the Company of S$7,556,541, compared to S$6,811,489 in the previous year, marking an increase of 10.9%[13]. - The consolidated loss after tax for the six months ended December 31, 2023, was S$6,812,255, compared to a loss of S$6,760,605 before tax[46]. - The segment results showed a consolidated loss before tax of S$7,558,257, with the Engineering Business reporting a loss of S$229,851 and the FinTech Platform Business a loss of S$5,807,191[41]. - The Investment Holding segment reported a loss of S$1,600,671, contributing to the overall consolidated loss after tax of S$7,556,861[41]. Expenses and Costs - Administrative expenses were S$10,835,011, slightly reduced from S$11,146,585 in the previous period, showing a 2.8% decrease[11]. - Finance costs increased to S$63,916, up 90.6% from S$33,464 in the previous year, indicating rising financing expenses[11]. - Total staff costs for the six months ended December 31, 2024, amounted to S$9,766,694, a decrease from S$10,077,833 in 2023[68]. - The cost of materials recognized as cost of services rendered/sales was S$1,009,150, an increase from S$822,367 in 2023[68]. - Interest income decreased to S$144,202 for the six months ended December 31, 2024, from S$208,093 in 2023, a decline of approximately 30.7%[20]. Asset and Liability Management - Total non-current assets increased to S$8,354,490 as of December 31, 2024, up from S$7,268,607 on June 30, 2024, representing a growth of approximately 14.9%[15]. - Current assets decreased significantly to S$27,811,618 from S$49,945,991, a decline of about 44.3%[15]. - Total current liabilities decreased to S$15,877,085 from S$30,053,022, a reduction of approximately 47.1%[15]. - Net current assets dropped to S$11,934,533, down from S$19,892,969, indicating a decline of about 40.0%[15]. - Total equity decreased to S$19,461,500 from S$26,827,500, reflecting a decline of approximately 27.6%[16]. - The company’s reserves decreased significantly from S$25,018,490 to S$17,652,280, a decline of approximately 29.0%[16]. - Lease liabilities increased to S$792,181 from S$298,734, representing a growth of about 165.5%[16]. - The Group's total non-current assets as of December 31, 2024, were S$8,354,490, an increase from S$7,268,607 as of June 30, 2024[52]. - The Group's current portion of other receivables decreased from S$24,623,041 as of June 30, 2024, to S$7,605,230 as of December 31, 2024, suggesting a significant reduction in short-term receivables[91]. - Deposits with brokers decreased from S$23,577,883 as of June 30, 2024, to S$6,306,101 as of December 31, 2024, indicating a shift in trading strategy or reduced trading activity[91]. Cash Flow Analysis - Operating cash flows before working capital changes were S$(7,079,952) for the six months ended December 31, 2024, compared to S$(6,268,437) in 2023, reflecting a decline of about 12.9%[20]. - Net cash used in operating activities was S$8,724,990 for the six months ended December 31, 2024, compared to S$5,624,878 in 2023, representing an increase of approximately 55.5%[20]. - Cash and cash equivalents at the end of the period were S$6,246,367, down from S$11,708,603 at the end of the previous period, a decrease of about 46.7%[21]. - The company reported a net cash decrease in cash and cash equivalents of S$9,327,091 for the six months ended December 31, 2024, compared to S$884,262 in 2023, indicating a significant increase in cash outflow[21]. - Net cash from investing activities was S$(352,806) for the six months ended December 31, 2024, compared to S$5,046,495 in 2023, indicating a significant decline in cash inflow from investments[21]. Strategic Initiatives and Future Outlook - The company continues to explore new strategies for market expansion and product development to improve future performance[10]. - The Group acquired two subsidiaries in 2023, focusing on trading derivatives and providing advisory and asset management services, to diversify income sources and enhance financial service offerings[166]. - The Group is developing a user-centric FinTech trading service platform to empower users to explore various asset classes, including virtual and Web3 assets[178][182]. - The Group aims to strengthen its market position in the medical and healthcare construction sectors and continue developing its FinTech and Trading and Asset Management Businesses[185]. - The Group sees opportunities for more projects due to the ongoing replacement and upgrades of old machines and facilities in response to future healthcare demands[177][181]. - The Group is actively participating in planning a new hospital in Eastern Singapore and upgrading existing facilities to address future pandemic challenges[190]. - The Group is confident in the growth of its FinTech Platform Business, supported by government initiatives to develop Hong Kong as an international financial center for virtual assets[187]. Share Capital and Options - The share capital increased slightly to S$1,813,235 from S$1,812,705, showing a marginal growth[16]. - The total number of issued and fully paid ordinary shares increased to 1,076,387,019 from 1,076,078,524 at the beginning of the period, reflecting an increase of 308,495 shares due to the exercise of share options[117]. - A total of 308,495 share options were exercised during the period at a weighted average exercise price of HK$1.30 per share, resulting in HK$3,085 credited to share capital and HK$400,239 credited to share premium[118]. - The company issued 25,550,000 ordinary shares at a placing price of HK$2.00 per share on May 28, 2024, raising a total of HK$50,333,500 net of issuance expenses[118]. - The total share capital as of December 31, 2024, was HK$10,763,870, reflecting the cumulative impact of share options exercised and new shares issued[117]. - The company has adopted a share option scheme to reward participants and encourage them to enhance the company's value, with options granted to directors and employees[126]. - The total share options exercised during the year ended June 30, 2024, amounted to 498,524 at a weighted average exercise price of HK$1.28 per share, contributing HK$4,985 to share capital and HK$632,216 to share premium[119]. Regulatory and Compliance - The company has not applied new IFRSs that are not yet effective, which are expected to have no material impact on the financial statements[32]. - The Group has adopted all applicable new and revised International Financial Reporting Standards effective from July 1, 2024, with no significant impact on the financial statements[35]. - The Group is collaborating with regulators to acquire a Virtual Asset Trading Platform Operators Licence in Hong Kong, anticipating growth in the FinTech Platform Business[179]. - The Group views regulatory developments as opportunities for long-term growth in the virtual assets industry[188].
HKE HOLDINGS(01726) - 2025 - 中期财报