现恒建筑(01500) - 2025 - 年度业绩

Annual Consolidated Results Announcement Consolidated Financial Statements This section outlines the consolidated statement of profit or loss and other comprehensive income and the consolidated statement of financial position for Heng He Construction Holdings Limited for the year ended March 31, 2025, showcasing the company's financial performance and year-end financial position during the reporting period Consolidated Statement of Profit or Loss and Other Comprehensive Income Key Data from Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 273,600 | 383,102 | (109,502) | -28.58% | | Direct Costs | (273,366) | (376,086) | 102,720 | -27.31% | | Gross Profit | 234 | 7,016 | (6,782) | -96.67% | | Other Income | 1,781 | 1,061 | 720 | 67.86% | | Administrative and Other Operating Expenses | (20,708) | (20,642) | (66) | 0.32% | | Operating Loss | (18,693) | (12,565) | (6,128) | 48.77% | | Finance Costs | – | (146) | 146 | -100.00% | | Loss Before Tax | (18,693) | (12,711) | (5,982) | 47.06% | | Income Tax | (218) | (144) | (74) | 51.39% | | Loss and Total Comprehensive Income for the Year | (18,911) | (12,855) | (6,056) | 47.11% | | Basic and Diluted Loss Per Share (HK cents) | (2.3) | (1.5) | (0.8) | 53.33% | Consolidated Statement of Financial Position Key Data from Consolidated Statement of Financial Position | Indicator | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Assets | | | | | | Non-current Assets | 410 | 274 | 136 | 49.64% | | Current Assets | 368,665 | 394,990 | (26,325) | -6.67% | | Liabilities | | | | | | Current Liabilities | 126,406 | 133,684 | (7,278) | -5.44% | | Equity | | | | | | Total Equity | 242,669 | 261,580 | (18,911) | -7.23% | | Net Current Assets | 242,259 | 261,306 | (19,047) | -7.29% | - Property, plant and equipment within non-current assets significantly increased from 33 Thousand HKD in 2024 to 220 Thousand HKD in 2025, a 566.67% increase[5] - Contract assets decreased from 247,602 Thousand HKD in 2024 to 230,499 Thousand HKD in 2025, a 6.99% decrease[5] - Trade and other receivables increased from 50,348 Thousand HKD in 2024 to 54,072 Thousand HKD in 2025, a 7.40% increase[5] - Cash and bank balances decreased from 78,565 Thousand HKD in 2024 to 72,999 Thousand HKD in 2025, a 7.08% decrease[5] - Trade and other payables decreased from 113,892 Thousand HKD in 2024 to 100,350 Thousand HKD in 2025, an 11.90% decrease[5] Notes to the Financial Statements This section elaborates on the Group's accounting policies, revenue composition, various expenses, tax treatment, loss per share calculation, aging analysis of receivables and payables, and contingent liabilities, providing supplementary information for understanding the consolidated financial statements General Information and Basis of Presentation - The Group primarily operates as a foundation works contractor in Hong Kong[7] - The company was incorporated in the Cayman Islands on September 29, 2014, and listed on the Hong Kong Stock Exchange on April 16, 2015[7][8] - The financial statements are prepared in accordance with all applicable Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants and the disclosure requirements of the Hong Kong Companies Ordinance, complying with the Listing Rules of the Stock Exchange[8] Changes in Accounting Policies - Certain amendments to Hong Kong Financial Reporting Standards issued by the Hong Kong Institute of Certified Public Accountants became effective for the first time in the current accounting period[9] - These changes in accounting policies had no significant impact on the preparation or presentation of the Group's financial performance and financial position for the current or prior periods[10] - The Group has not applied any new standards or interpretations that are not yet effective for the current accounting period[10] Revenue and Segment Information - Revenue refers to construction contract revenue earned during the year[12] - The chief operating decision-maker views the Group's business as a single operating segment, operating solely in Hong Kong, thus no segment information is presented[13] Other Income Details of Other Income | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Bank Interest Income | 556 | 587 | (31) | -5.28% | | Interest Income from Lease Receivables | – | 130 | (130) | -100.00% | | Sale of Scraps | 1,100 | 275 | 825 | 300.00% | | Others | 125 | 69 | 56 | 81.16% | | Total | 1,781 | 1,061 | 720 | 67.86% | Loss Before Tax Key Deductions for Loss Before Tax | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Finance Costs | | | | | | Interest on Lease Liabilities | – | 146 | (146) | -100.00% | | Staff Costs | | | | | | Defined Contribution Retirement Plan Contributions | 730 | 785 | (55) | -7.01% | | Salaries, Wages and Other Benefits | 32,266 | 32,162 | 104 | 0.32% | | Other Items | | | | | | Depreciation | 126 | 101 | 25 | 24.75% | | Net Exchange Loss | 140 | 1,421 | (1,281) | -90.15% | | Impairment Provision for Trade and Other Receivables and Contract Assets | 1,335 | 55 | 1,280 | 2327.27% | | Auditor's Remuneration (Audit Services) | 980 | 1,080 | (100) | -9.26% | Income Tax Income Tax Expense Details | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Hong Kong Profits Tax Provision for the Year | 167 | 149 | 18 | 12.08% | | Under-provision in Prior Years | – | 10 | (10) | -100.00% | | Origination and Reversal of Temporary Differences | 51 | (15) | 66 | -440.00% | | Total | 218 | 144 | 74 | 51.39% | - Hong Kong profits tax adopts a two-tiered tax rate, with the first 2,000,000 HKD of assessable profits taxed at 8.25% and the remainder at 16.5%[17] - The 2025 Hong Kong profits tax provision includes a 100% tax reduction (up to 1,500 HKD) for the 2024-2025 assessment year from the government[17] - The Group is not subject to any income tax in the Cayman Islands and British Virgin Islands[18] Loss Per Share Loss Per Share Data | Indicator | 2025 | 2024 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Loss Attributable to Equity Holders of the Company (Thousand HKD) | 18,911 | 12,855 | 6,056 | 47.11% | | Weighted Average Number of Shares in Issue (Shares) | 830,000,000 | 830,000,000 | 0 | 0.00% | | Basic and Diluted Loss Per Share (HK cents) | (2.3) | (1.5) | (0.8) | 53.33% | - There were no potential dilutive shares for the years ended March 31, 2025, and 2024[20] Trade and Other Receivables Details of Trade and Other Receivables | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade Receivables (net of impairment provision) | 44,423 | 23,807 | 20,616 | 86.60% | | Deposits, Prepayments and Other Receivables | 4,961 | 7,102 | (2,141) | -30.15% | | Retention Receivables (net of impairment provision) | 4,688 | 19,439 | (14,751) | -75.88% | | Total | 54,072 | 50,348 | 3,724 | 7.40% | Aging Analysis of Trade Receivables | Aging | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Within 1 month | 41,872 | 14,223 | 27,649 | 194.39% | | Over 1 month but within 2 months | – | 8,757 | (8,757) | -100.00% | | Over 2 months but within 3 months | 885 | 827 | 58 | 7.01% | | Over 3 months | 1,666 | – | 1,666 | N/A | | Total | 44,423 | 23,807 | 20,616 | 86.60% | - Trade receivables are generally due within 30-90 days from the invoice date[22] - As of March 31, 2025, 3,828 Thousand HKD in deposits were pledged to issue performance guarantees[21] Trade and Other Payables Details of Trade and Other Payables | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Trade Payables | 48,764 | 59,884 | (11,120) | -18.57% | | Project Provisions | 22,954 | 19,395 | 3,559 | 18.35% | | Other Payables and Accrued Expenses | 28,632 | 34,613 | (5,981) | -17.28% | | Total | 100,350 | 113,892 | (13,542) | -11.89% | Aging Analysis of Trade Payables | Aging | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Within 1 month | 37,082 | 3,049 | 34,033 | 1116.39% | | Over 1 month but within 2 months | 4,671 | 49,612 | (44,941) | -90.58% | | Over 2 months but within 3 months | 4,714 | 2,010 | 2,704 | 134.53% | | Over 3 months | 2,297 | 5,213 | (2,919) | -56.00% | | Total | 48,764 | 59,884 | (11,120) | -18.57% | Dividends (Notes) - The Board resolved not to declare any dividends for the year ended March 31, 2025 (2024: nil)[25] Contingent Liabilities (Notes) Amount of Contingent Liabilities | Item | 2025 (Thousand HKD) | 2024 (Thousand HKD) | Change (Thousand HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Contingent Liabilities for Performance Guarantees | 58,524 | 112,229 | (53,705) | -47.85% | - Performance guarantees are undertakings by the Group for the proper fulfillment of project responsibilities by its subsidiaries, expected to be released in accordance with the terms of each construction contract[26] Management Discussion and Analysis This section provides a detailed analysis of the Group's business operations, financial performance, liquidity, capital structure, employee situation, future outlook, and major investment plans, highlighting a significant decline in revenue and gross profit, an expanded loss, but stable liquidity, and expresses optimism for the recovery of the Hong Kong construction industry Business Review - The Group primarily operates as a foundation works contractor in Hong Kong, responsible for foundation and related works, including demolition, site formation, on-site land investigation, and general building works[27] - The Group focuses on design and build projects due to their flexibility and ability to offer cost-effective alternative design solutions[28] - In the 2024/25 financial year, the Group was not awarded any new projects[28] - As of March 31, 2025, there were six ongoing projects with an outstanding contract sum of 416.4 Million HKD[28] Financial Review Financial Performance Overview | Indicator | FY2024/25 (Million HKD) | FY2023/24 (Million HKD) | Change (Million HKD) | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Revenue | 273.6 | 383.1 | (109.5) | -28.58% | | Gross Profit | 0.2 | 7.0 | (6.8) | -97.14% | | Gross Profit Margin | 0.1% | 1.8% | -1.7% | -94.44% | | Administrative and Other Operating Expenses | 20.7 | 20.6 | 0.1 | 0.49% | | Loss for the Year | 18.9 | 12.9 | 6.0 | 46.51% | - The decrease in revenue was primarily due to agreed and ascertained damages incurred for unexpected delays in certain foundation projects, and changes in variable consideration estimates for projects completed in prior years[30] - The top three projects contributed 234.7 Million HKD in revenue (2024: 240.1 Million HKD), with the largest project contributing 44.7% of total revenue[30] Liquidity, Financial Resources and Capital Structure Liquidity and Capital Structure Indicators | Indicator | March 31, 2025 | March 31, 2024 | Change | | :--- | :--- | :--- | :--- | | Current Ratio | 2.9 | 3.0 | -0.1 | | Gearing Ratio | 5.4% | 5.0% | +0.4% | - The increase in the gearing ratio was primarily due to a decrease in total equity resulting from the annual loss[31] - As of March 31, 2025, cash and bank balances were 73.0 Million HKD (2024: 78.6 Million HKD), of which 41.6 Million HKD were restricted bank balances[32] - The Group's capital structure comprises 242.7 Million HKD in equity and 13.0 Million HKD in debt[32] - The Group has 190.0 Million HKD in bank facilities, of which approximately 150.1 Million HKD remains unutilized and unrestricted[32] Employees Number of Employees | Year | Number of Employees | Change | Change Rate | | :--- | :--- | :--- | :--- | | March 31, 2025 | 47 | -1 | -2.08% | | March 31, 2024 | 48 | | | - The Group offers competitive remuneration packages, including salaries, performance bonuses, training, and MPF contributions, determined by market levels, individual performance, and Group business performance[33] Capital Commitments - As of March 31, 2025, the Group had no capital commitments (2024: nil)[34] Contingent Liabilities (Management Discussion and Analysis) - Except as disclosed in Note 11, the Group had no other contingent liabilities as of March 31, 2025[35] Plans for Material Investments, Major Acquisitions or Disposals of Subsidiaries and Affiliated Companies, and Major Investments or Capital Assets - During the 2024/25 financial year, the Group had no material investments, major acquisitions, or disposals of subsidiaries and affiliated companies[36] - As of March 31, 2025, there were no other plans for major investments or capital assets[36] Future Prospects - The Group anticipates a mid-term recovery in the Hong Kong construction industry, benefiting from government policies to increase land supply and infrastructure investment[37] - The Board is confident in the Group's ability to achieve growth in net profit and operational scale in the future, leveraging its reputation, listing platform, and sound financial position[37] - To maintain competitiveness, the Group will continue to expand capacity, enhance foundation design capabilities, and improve project management skills to provide high-quality and flexible solutions[37] Other Information This section covers non-financial information such as dividend policy, register of members arrangements, securities transactions, post-reporting events, corporate governance practices, audit committee responsibilities, auditor's scope of work, and report publication, aiming to provide transparency on the company's operations and governance Dividends (Other Information) - The Board resolved not to declare a final dividend for the 2024/25 financial year[38] Closure of Register of Members - To ensure the right to attend and vote at the Annual General Meeting, the company will suspend registration of members from Tuesday, September 9, 2025, to Friday, September 12, 2025[39] - Shareholders must ensure all completed share transfer forms, together with share certificates, are delivered to the Hong Kong share registrar by 4:30 p.m. on Monday, September 8, 2025[39] Purchase, Sale or Redemption of the Company's Listed Securities - During the current year, neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities[40] Events After Reporting Period - The Board is not aware of any significant events requiring disclosure that occurred after March 31, 2025, up to the date of this announcement[41] Corporate Governance - The company is committed to achieving high standards of corporate governance and enhancing performance and corporate image through more effective governance procedures[42] - The company has consistently applied and complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, except for a deviation from code provision C.2.1 (separation of roles of Chairman and Chief Executive)[43] - Mr. Lau Pak Man serves as both Chairman and Chief Executive Officer, an arrangement the Board believes ensures strategic consistency and continuous execution, without compromising the balance of power, accountability, and independent decision-making[43] Review by Audit Committee - The Audit Committee is composed of three independent non-executive directors[44] - The Audit Committee has reviewed the Group's consolidated financial statements for the year ended March 31, 2025[44] Compliance with the Model Code for Securities Transactions by Directors - The company has adopted the Model Code set out in Appendix C3 of the Listing Rules as the standard for directors' dealings in the company's securities[45] - Following inquiry, each director confirmed their compliance with the required standards set out in the Model Code during the current year[45] Scope of Work of the Auditor - The Group's auditor, KPMG, has agreed the figures in the consolidated statement of financial position, consolidated statement of profit or loss and other comprehensive income, and related notes in the preliminary announcement with the draft consolidated financial statements[46] - KPMG's work in this regard does not constitute an assurance engagement, and therefore no opinion or assurance conclusion is expressed on the preliminary announcement[46] Publication of Annual Results, Annual Report and Environmental, Social and Governance Report - This results announcement has been published on the company's website and the Stock Exchange's website[47] - The 2024/2025 Annual Report and Environmental, Social and Governance Report will be dispatched to shareholders upon request and published on the Stock Exchange's and the company's websites[47] Acknowledgement - The Board expresses gratitude for the efforts and dedication of the Group's management and all staff, and the support from shareholders, business associates, and other professionals[48] Board Information - As of the date of this announcement, the Board comprises executive directors Mr. Lau Pak Man, Mr. Cheng Wing Cheong, and Ms. Kwan Kit Sum; and independent non-executive directors Mr. Leung Tsz Kin, Mr. Lam Chi Hung, and Ms. Mok Kam Sheung[50]