荣利营造(09639) - 2024 - 年度业绩

Overall Financial and Operating Summary The Group reported a 36.2% revenue increase to HKD 717 million for FY2025, but net profit declined by 27.9% due to higher operating and listing expenses Financial Highlights For the year ended March 31, 2025, group revenue increased by 36.2% to HKD 717 million, but operating profit and net profit significantly declined by 26.0% and 27.9% respectively, primarily due to increased listing and administrative expenses FY2025 Financial Highlights (Compared to FY2024) | Metric | 2025 (HKD thousands) | 2024 (HKD thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 716,639 | 526,099 | 36.2% | | Gross Profit | 144,407 | 121,607 | 18.7% | | Operating Profit | 70,528 | 95,283 | (26.0)% | | Profit Before Tax | 68,253 | 92,916 | (26.5)% | | Profit for the Year | 55,458 | 76,907 | (27.9)% | | Basic Earnings Per Share (HK cents) | 6.4 | 10.3 | (37.9)% | Consolidated Financial Statements The consolidated financial statements show a 36.2% revenue increase to HKD 717 million, but profit for the year decreased by 27.9% to HKD 55.46 million, while total assets grew to HKD 569 million and total equity significantly increased by 126% to HKD 352 million Consolidated Statement of Profit or Loss Revenue for the year reached HKD 717 million, growing 36.2%, but a higher increase in service costs and a 157% surge in general and administrative expenses, coupled with listing expenses, led to a 27.9% decline in profit for the year to HKD 55.46 million Key Items from Consolidated Statement of Profit or Loss | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Revenue | 716,639 | 526,099 | | Gross Profit | 144,407 | 121,607 | | General and Administrative Expenses | (60,593) | (23,561) | | Listing Expenses | (16,516) | (4,880) | | Operating Profit | 70,528 | 95,283 | | Profit for the Year | 55,458 | 76,907 | Consolidated Statement of Comprehensive Income Total comprehensive income attributable to equity holders was HKD 54.74 million, a decrease from HKD 76.88 million last year, primarily due to other comprehensive loss from remeasurement of post-employment benefit obligations - Total comprehensive income attributable to equity holders for the current year was HKD 54.74 million, compared to HKD 76.88 million in the prior year[6] Consolidated Statement of Financial Position As of March 31, 2025, total assets increased to HKD 569 million, while total liabilities slightly grew to HKD 218 million, with net assets (total equity) significantly rising by 126% to HKD 352 million due to IPO proceeds, enhancing the capital structure Consolidated Statement of Financial Position Summary (As of March 31) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Assets | | | | Total Non-current Assets | 155,569 | 92,762 | | Total Current Assets | 413,647 | 273,015 | | Total Assets | 569,216 | 365,777 | | Liabilities and Equity | | | | Total Liabilities | 217,623 | 210,385 | | Net Assets (Total Equity) | 351,593 | 155,392 | - Contract assets within current assets increased from HKD 188 million to HKD 271 million, and cash and cash equivalents rose from HKD 27.36 million to HKD 93.68 million[7] Notes to the Financial Statements The notes detail the company's listing on HKEX, its core businesses in Hong Kong, revenue segmentation showing strong growth in civil and E&M engineering, and key financial items including increased employee and listing expenses, alongside changes in assets and liabilities General Information and Accounting Policies Rongli Construction Holdings Limited, incorporated in May 2024 and listed on the HKEX Main Board on October 9, 2024, operates civil, E&M, and new energy businesses in Hong Kong, with financial statements prepared under HKFRS, and is assessing the impact of new standards like HKFRS 18 - The company was listed on the Main Board of the Hong Kong Stock Exchange via a share offer on October 9, 2024[9] - The company is assessing the impact of HKFRS 18 (Presentation and Disclosure in Financial Statements), which is expected to change the classification of income and expenses in the consolidated statement of profit or loss, affecting operating profit calculation but not net profit[19][20] Revenue and Segment Information Total revenue for the year was HKD 717 million, a 36.2% increase, with civil engineering contributing HKD 509 million and E&M engineering HKD 182 million, while new energy revenue declined by 56.6% to HKD 19.24 million Revenue by Business Segment (For the year ended March 31) | Business Segment | 2025 (HKD thousands) | 2024 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Civil Engineering | 508,941 | 365,454 | +39.3% | | E&M Engineering | 181,845 | 113,244 | +60.6% | | New Energy | 19,244 | 44,308 | -56.6% | | Others | 6,609 | 3,093 | +113.7% | | Total | 716,639 | 526,099 | +36.2% | - All revenue was derived from external customers in Hong Kong[28] Key Profit or Loss Items Profit before tax declined due to increased employee benefit expenses totaling HKD 185 million and a significant rise in listing expenses to HKD 16.52 million, leading to an effective tax rate increase from 17.2% to 18.7% due to non-deductible listing costs - Employee benefit expenses increased from HKD 123 million to HKD 185 million[30] - Listing expenses were HKD 16.52 million, a significant increase from HKD 4.88 million in the prior year[30] - The effective tax rate increased from 17.2% to 18.7%, primarily due to approximately HKD 16.52 million in non-tax deductible listing expenses[61] Earnings Per Share and Dividends Basic earnings per share for the year decreased by 37.9% to 6.4 HK cents, with no dilutive ordinary shares outstanding, and the company declared an interim dividend of HKD 30 million pre-listing but recommended no final dividend for the year ended March 31, 2025 - Basic earnings per share was 6.4 HK cents, a year-on-year decrease of 37.9%[35] - An interim dividend of approximately HKD 30 million was declared in September 2024 (pre-listing)[33] - The Board of Directors does not recommend the payment of a final dividend for the current year[80] Key Asset and Liability Items At the end of the reporting period, net trade receivables decreased to HKD 20.11 million, while net contract assets increased to HKD 271 million, reflecting higher unbilled revenue, and trade payables and retention money rose to HKD 91.98 million, with performance bonds of HKD 19.92 million provided for construction contracts Key Asset and Liability Items (As of March 31) | Item | 2025 (HKD thousands) | 2024 (HKD thousands) | | :--- | :--- | :--- | | Net Trade Receivables | 20,108 | 48,191 | | Net Contract Assets | 270,693 | 187,895 | | Trade Payables and Retention Money | 91,977 | 79,419 | - The Group provided guarantees for performance bonds on construction contracts totaling HKD 19.922 million[41] Management Discussion and Analysis The Group's core civil and E&M engineering segments show strong growth and significant outstanding contract values, while the new energy business is strategically expanding into electric machinery and integrated green solutions, with an optimistic outlook driven by Hong Kong's infrastructure and energy transition policies, despite a decline in overall net profit due to increased expenses Business Segment Review As a significant contractor in Hong Kong, the Group's civil, E&M, and new energy segments show strong growth in civil and E&M, with approximately HKD 967 million in outstanding contract value (excluding E&M master contract) as of March 31, 2025, while the new energy business is expanding into electric machinery distribution and charging services - As of March 31, 2025, the Group had 27 outstanding civil engineering and new energy projects with a total uncompleted contract value of approximately HKD 967 million[43] - For E&M engineering, the 8-year master contract is estimated to be worth approximately HKD 2 billion over its remaining term[43] Civil Engineering Civil engineering revenue reached HKD 509 million, a 39.3% year-on-year increase, driven by major projects like the Hong Kong International Airport Third Runway and large-scale residential developments, with new project wins securing future growth - Civil engineering recorded revenue of approximately HKD 509 million, a year-on-year increase of 39.3%[44] - Key projects include the Hong Kong International Airport Third Runway Project, the Sai Sha large-scale residential property project, and the Mui Wo rural sewerage collection works[44] E&M Engineering E&M engineering revenue significantly increased by 60.6% to HKD 182 million, highlighted by securing an 8-year master contract as the main contractor for power transmission projects in Kowloon and New Territories, valued at approximately HKD 2 billion - E&M engineering recorded revenue of approximately HKD 182 million, a year-on-year increase of 60.6%[47] - During the year, the Group secured an 8-year master contract for power transmission projects, with an estimated total value of approximately HKD 2 billion, marking a significant milestone[47] New Energy Business Solar PV business revenue was HKD 19.2 million, and despite a decline, the Group is actively transforming by partnering with Sany Group for electric machinery distribution and charging services, and establishing a "Zero-Carbon Smart Alliance" to venture into charging, battery swapping, and energy storage - Solar photovoltaic energy business recorded revenue of HKD 19.2 million[48] - Entered into distribution agreements with companies like Sany Group to distribute electric construction machinery and commercial vehicles, becoming the exclusive distributor for electric dump trucks, heavy trucks, and light trucks[48] - Led the establishment of the "Zero-Carbon Smart Alliance", venturing into charging, battery swapping, recycling, and energy storage[48] Future Outlook The Group is optimistic about future growth, with core businesses benefiting from Hong Kong's infrastructure and energy transition investments, while the new energy segment, considered a second growth curve, aims to capitalize on green transformation opportunities through strategic partnerships for integrated "solar, storage, charging, swapping, and recycling" solutions - The Group formed the "Zero-Carbon Smart Alliance" with industry giants like Sany Group and CATL, aiming to create a full-chain solution for solar, energy storage, charging/swapping, and green transportation smart applications[55] - The new energy trading business is considered the Group's second growth curve, particularly holding a leading position in the transportation and construction sectors[54] Civil Engineering Outlook The Hong Kong government's plan to issue HKD 150-195 billion in annual infrastructure bonds over the next five years presents a peak investment period for civil engineering, with the Group actively participating in major projects and being listed as a qualified contractor for public organizations - The Hong Kong government plans to issue large-scale bonds annually over the next five years to support infrastructure, including projects like the Northern Metropolis and Tung Chung New Town Extension[49] - The Group has been included in the pre-qualified contractor lists of several Hong Kong public organizations and is implementing safe smart construction site systems using digital platforms and AI technology to enhance management capabilities[50] E&M Engineering Outlook Hong Kong's E&M engineering market is projected for steady growth, driven by infrastructure development, power facility upgrades, and EV adoption, with CLP Power planning HKD 52.9 billion in infrastructure expansion, positioning the Group to secure more projects - The Hong Kong E&M engineering market is projected to reach HKD 26.5 billion by 2028[51] - CLP Power announced an investment of HKD 52.9 billion in its five-year development plan (2024-2028) for expanding power infrastructure and supporting energy transition, presenting opportunities for the Group[52] New Energy Business Outlook Hong Kong's green transition policies, including phasing out fossil fuel vehicles, create a vast market for new energy vehicles, where the Group, through strategic partnerships with Sany Group and CATL, is developing integrated "solar, storage, charging, swapping, and recycling" solutions and a "generation-storage-use-recycling" closed-loop ecosystem using V2G technology - Driven by Hong Kong government policies, approximately 40,000 Euro IV diesel commercial vehicles are expected to be phased out, creating significant growth opportunities for new energy electric commercial vehicles[53] - The Group signed a strategic cooperation agreement with Sany Group and CATL on May 9, 2025, to jointly launch an integrated solution covering "solar, storage, charging, swapping, and recycling"[55] Financial Performance Analysis Revenue grew 36.2% to HKD 717 million, driven by civil and E&M engineering, but gross margin declined from 23.1% to 20.2% due to lower margins on new projects, and administrative expenses surged 157%, resulting in a 27.9% decrease in profit for the year to HKD 55.5 million - Revenue increased by 36.2% year-on-year, primarily due to increased work completed on the Third Runway Project and the commencement of new E&M projects[57] - Gross margin decreased from 23.1% to 20.2%, mainly because projects contributing to revenue growth had relatively lower gross margins[58] - Administrative expenses increased by 157% year-on-year, primarily due to increased donations, employee benefits and bonuses, and legal and professional fees[59] - Profit for the year decreased by 27.9% year-on-year, mainly due to increased listing expenses and general administrative expenses[62] Liquidity and Capital Resources The Group's financial position is robust, with cash and cash equivalents increasing to HKD 93.7 million due to IPO proceeds, improving the current ratio from 1.46x to 2.10x, and significantly reducing the gearing ratio from 34.1% to 20.5%, indicating lower financial leverage and enhanced solvency, with capital expenditures of HKD 65.5 million primarily for property and equipment Key Financial Ratios (As of March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents (HKD thousands) | 93,676 | 27,361 | | Current Ratio | 2.10x | 1.46x | | Gearing Ratio | 20.5% | 34.1% | - Capital expenditure for the year was approximately HKD 65.5 million, primarily for leased land, property and equipment, and software[69] Corporate Governance and Other Information The company maintains high corporate governance standards with one deviation regarding the combined Chairman and CEO roles, has utilized 50.6% of its IPO proceeds for operational expansion, increased its employee count and staff costs, and disclosed a post-reporting period machinery purchase Corporate Governance Practices The company maintains high corporate governance standards, adhering to Listing Rules' Corporate Governance Code since its listing, with one deviation where Mr. Yiu Wang Lee serves as both Chairman and CEO, an arrangement the Board believes provides strong leadership and will be continuously reviewed - The company complies with the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are not segregated and are both held by Mr. Yiu Wang Lee[73] - The Board believes that combining the roles of Chairman and Chief Executive Officer provides strong and consistent leadership, benefiting the Group's management[73] Use of Proceeds from IPO The company, listed on October 9, 2024, raised approximately HKD 150 million in net proceeds, of which HKD 75.9 million (50.6%) was utilized by March 31, 2025, primarily for upfront project costs, new hires, and working capital, with HKD 74.1 million remaining for E&M machinery and system procurement Use of Net Proceeds from IPO (As of March 31, 2025) | Intended Use of Net Proceeds | Net Proceeds (HKD millions) | Amount Utilized (HKD millions) | Unutilized Amount (HKD millions) | | :--- | :--- | :--- | :--- | | Acquisition of more E&M machinery and equipment | 67.5 | 2.9 | 64.6 | | Payment of upfront costs for new projects | 52.5 | 46.9 | 5.6 | | Recruitment of new staff | 7.5 | 7.5 | — | | Procurement of 4S and enterprise planning systems | 7.5 | 3.6 | 3.9 | | General working capital | 15.0 | 15.0 | — | | Total | 150.0 | 75.9 | 74.1 | Employee and Remuneration Policy As of March 31, 2025, the Group's employee count increased from 344 to 411, with total annual staff costs, including directors' emoluments, significantly rising to HKD 185 million from HKD 123 million, and while share award and share option schemes are adopted, no options or shares have been granted - As of March 31, 2025, the Group had 411 employees, an increase from 344 in the prior year[78] - Total staff costs for the year ended March 31, 2025, were approximately HKD 185 million, compared to HKD 123 million in the prior year[78] Audit and Post-Reporting Period Events The Audit Committee reviewed the annual results, and PwC reconciled the preliminary announcement figures with the audited consolidated financial statements; post-reporting period, on April 1, 2025, the Group entered a HKD 1.732 million machinery purchase agreement with Zhongfu Hong Kong, constituting a discloseable transaction - The Audit Committee reviewed the annual results and held discussions with management and external auditors[81] - Subsequent to the reporting period, on April 1, 2025, the Group entered into an agreement to purchase machinery, which constitutes a discloseable transaction[83]