德合集团(00368) - 2025 - 中期业绩

Condensed Consolidated Statement of Comprehensive Income The Group's revenue increased by 11.4% to HK$450,905 thousand, while gross profit decreased by 8.0% to HK$51,376 thousand, and total comprehensive income remained stable at HK$4,239 thousand Condensed Consolidated Statement of Comprehensive Income For the six months ended June 30, 2025, the company's revenue increased by 11.4% to HK$450,905 thousand, but gross profit decreased by 8.0% to HK$51,376 thousand, leading to a gross margin reduction from 13.8% to 11.4%, while profit and total comprehensive income for the period remained stable at approximately HK$4,239 thousand Financial Performance Comparison (2025 vs 2024 H1) | Metric | 2025 H1 (HK$ thousand) | 2024 H1 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 450,905 | 404,683 | +11.4% | | Cost of services | (399,529) | (348,840) | +14.5% | | Gross profit | 51,376 | 55,843 | -8.0% | | Other income/(loss) net | 2,198 | (1,122) | N/A | | Administrative expenses | (30,592) | (31,126) | -1.7% | | Finance costs | (17,708) | (17,451) | +1.5% | | Profit before income tax expense | 5,274 | 6,144 | -14.1% | | Income tax expense | (1,035) | (1,872) | -44.8% | | Profit and total comprehensive income for the period attributable to owners of the Company | 4,239 | 4,272 | -0.8% | | Basic and diluted earnings per share (HK cents) | 0.53 | 0.53 | 0% | Condensed Consolidated Statement of Financial Position Total assets slightly decreased to HK$1,037,257 thousand, with a significant reduction in trade receivables and an increase in contract assets, while total equity and liabilities also saw minor changes Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets were HK$1,037,257 thousand, a slight decrease from December 31, 2024, with trade receivables significantly down and contract assets up, while total equity and liabilities also slightly decreased Financial Position Comparison (June 30, 2025 vs December 31, 2024) | Metric | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Assets | | | | | Non-current assets | 130,694 | 127,709 | +2.3% | | Current assets | 906,563 | 937,713 | -3.3% | | Total assets | 1,037,257 | 1,065,422 | -2.7% | | Equity and Liabilities | | | | | Total equity | 210,915 | 220,036 | -4.2% | | Non-current liabilities | 17,962 | 15,947 | +12.6% | | Current liabilities | 810,395 | 827,424 | -2.1% | | Total liabilities | 826,342 | 845,386 | -2.2% | | Total equity and liabilities | 1,037,257 | 1,065,422 | -2.7% | - Net trade receivables significantly decreased from HK$158,961 thousand as of December 31, 2024, to HK$78,341 thousand as of June 30, 2025[3][23] - Contract assets increased from HK$622,297 thousand as of December 31, 2024, to HK$680,130 thousand as of June 30, 2025[3] Notes to the Condensed Consolidated Financial Statements This section details the Group's general information, accounting policies, revenue, tax, profit, earnings per share, dividends, and key financial position items including receivables, payables, and contingent liabilities General Information Dehe Group Holdings Limited, incorporated in the Cayman Islands, listed on the HKEX main board on July 17, 2020, primarily provides renovation and maintenance services for residential and commercial properties in Hong Kong - The Company was incorporated in the Cayman Islands on July 11, 2019, and its shares were listed on the Main Board of the Stock Exchange of Hong Kong on July 17, 2020[5] - The Group's principal activities are the provision of renovation services and repair and maintenance services for residential and commercial properties in Hong Kong[5] Basis of Preparation and Accounting Policies Interim financial information is prepared under HKAS 34 and Listing Rules, read with annual financial statements, adopting relevant amended standards with no material impact, and noting new standards not yet effective - The condensed consolidated interim financial information is prepared in accordance with the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Hong Kong Accounting Standard 34 “Interim Financial Reporting” issued by the Hong Kong Institute of Certified Public Accountants[6] - The preparation requires management to make judgments, estimates, and assumptions, where actual results may differ from these estimates[6] - The Group adopted HKAS 21 and HKFRS 1 (Amendments) “Lack of Exchangeability” during the period, which had no material impact on its performance or financial position[9] - Several new standards and amendments effective January 1, 2026, or January 1, 2027, are listed, and the Group is assessing their impact[10][11][12] Revenue and Segment Information The Group's chief operating decision maker views renovation and maintenance services as a single operating segment, with HK$448,267 thousand from renovation and HK$2,638 thousand from maintenance for the six months ended June 30, 2025, all revenue and assets originating from Hong Kong Revenue Breakdown (For the six months ended June 30) | Service Type | 2025 (HK$ thousand) | 2024 (HK$ thousand) | | :--- | :--- | :--- | | Renovation services | 448,267 | 403,075 | | Repair and maintenance services | 2,638 | 1,608 | | Total revenue | 450,905 | 404,683 | - All of the Group's revenue and assets are based in and generated from Hong Kong[15] Income Tax Expense For the six months ended June 30, 2025, income tax expense decreased to HK$1,035 thousand from HK$1,872 thousand in the prior period, with Hong Kong profits tax levied at 8.25% for the first HK$2 million and 16.5% for the remainder Income Tax Expense Comparison (For the six months ended June 30) | Metric | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Current income tax - Provision for the period | 1,035 | 1,463 | -29.3% | | Deferred income tax | 0 | 409 | -100% | | Total income tax expense | 1,035 | 1,872 | -44.8% | - Hong Kong profits tax is calculated under a two-tiered profits tax regime: 8.25% on the first HK$2 million of assessable profits and 16.5% on the remaining assessable profits[17] Profit for the Period Profit for the period is stated after deducting key expenses including subcontracting fees, material costs, depreciation, employee benefits, and finance costs, with subcontracting fees and material costs increasing year-on-year, while depreciation of right-of-use assets significantly decreased Key Deductions from Profit for the Period (For the six months ended June 30) | Item | 2025 (HK$ thousand) | 2024 (HK$ thousand) | Change (%) | | :--- | :--- | :--- | :--- | | Subcontracting fees | 270,011 | 251,826 | +7.2% | | Material costs | 88,189 | 53,616 | +64.5% | | Depreciation of plant and equipment | 283 | 459 | -38.4% | | Depreciation of right-of-use assets | 6,973 | 2,417 | +188.5% | | Employee benefit expenses (including directors' emoluments) | 53,050 | 52,229 | +1.6% | | Interest expense on borrowings | 17,106 | 17,351 | -1.4% | | Interest portion on lease liabilities | 602 | 100 | +502% | Earnings Per Share For the six months ended June 30, 2025, basic and diluted earnings per share remained stable at 0.53 HK cents, consistent with the prior period, due to no potential dilutive ordinary shares in issue Earnings Per Share (For the six months ended June 30) | Metric | 2025 (HK$/HK cents) | 2024 (HK$/HK cents) | | :--- | :--- | :--- | | Profit attributable to owners of the Company | 4,239,000 | 4,272,000 | | Weighted average number of ordinary shares in issue | 800,000,000 | 800,000,000 | | Basic and diluted earnings per share (HK cents) | 0.53 | 0.53 | - Diluted earnings per share is equal to basic earnings per share as there were no potential dilutive ordinary shares in issue during the reporting period[21] Dividends The Board does not recommend an interim dividend for the six months ended June 30, 2025, while the 2024 final dividend of 1.67 HK cents per share was approved by shareholders on June 25, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[22][51] - The 2024 final dividend of 1.67 HK cents per share (totaling HK$13,360,000) was approved by shareholders on June 25, 2025[22] Trade Receivables As of June 30, 2025, net trade receivables significantly decreased to HK$78,341 thousand from HK$158,961 thousand on December 31, 2024, with a notable reduction in receivables within 30 days Net Trade Receivables | Date | Amount (HK$ thousand) | | :--- | :--- | | June 30, 2025 | 78,341 | | December 31, 2024 | 158,961 | Trade Receivables Ageing Analysis (Before impairment allowance) | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 1 to 30 days | 32,715 | 88,218 | | 31 to 60 days | 17,857 | 56,060 | | 61 to 90 days | 23,746 | 7,413 | | Over 90 days | 4,063 | 7,297 | | Total | 78,381 | 158,988 | Trade Payables As of June 30, 2025, total trade payables decreased to HK$153,945 thousand from HK$171,044 thousand on December 31, 2024, with a significant reduction in payables over 90 days Trade Payables Ageing Analysis | Ageing | June 30, 2025 (HK$ thousand) | December 31, 2024 (HK$ thousand) | | :--- | :--- | :--- | | 1 to 30 days | 109,364 | 125,273 | | 31 to 60 days | 24,842 | 19,891 | | 61 to 90 days | 13,134 | 8,168 | | Over 90 days | 6,605 | 17,712 | | Total | 153,945 | 171,044 | Contingent Liabilities As of June 30, 2025, the Group's contingent liabilities primarily consisted of performance bonds, increasing to HK$148,639 thousand from HK$126,423 thousand on December 31, 2024, related to renovation contracts Contingent Liabilities (Performance bonds) | Date | Amount (HK$ thousand) | | :--- | :--- | | June 30, 2025 | 148,639 | | December 31, 2024 | 126,423 | - The Group provided corporate guarantees for 13 renovation contracts, which are expected to be released in accordance with the contract terms[26] Management Discussion and Analysis This section reviews the Group's financial performance, business operations, outlook, indebtedness, liquidity, foreign exchange risk, employee policies, and significant corporate events Financial Review For the six months ended June 30, 2025, revenue grew by 11.4% due to more small projects, but gross profit and margin declined due to lower profitability of these projects, while administrative and finance costs remained stable, as did total comprehensive income - Revenue increased by 11.4% to HK$450,905 thousand (2024: HK$404,683 thousand), primarily due to an increase in the number of small-scale projects undertaken[27][28] - Gross profit decreased by 8.0% to HK$51,376 thousand (2024: HK$55,843 thousand), with gross margin declining from 13.8% to 11.4%, mainly due to lower profit margins on small-scale projects[29] - Administrative expenses and finance costs remained relatively stable at approximately HK$30,592 thousand and HK$17,708 thousand, respectively[31][32] - Profit and total comprehensive income for the period attributable to owners of the Company remained relatively stable at approximately HK$4,239 thousand[33] Business Review and Outlook As an experienced Hong Kong contractor, the Group provides renovation and maintenance services, holding 62 projects worth approximately HK$5,275 million as of June 30, 2025, and plans to leverage AI and big data for business stability, digital transformation, efficiency, and cost reduction amidst a slowing construction industry - The Group is an established contractor in Hong Kong with over 21 years of operating history, providing renovation and repair and maintenance services[34] - As of June 30, 2025, the Group had 62 renovation projects on hand with a total contract sum of approximately HK$5,275 million (December 31, 2024: 60 projects, approximately HK$5,371 million)[35] - The growth of Hong Kong's construction industry continues to slow, with the second half of 2025 expected to be challenging, yet government policies and industry trends present both challenges and opportunities[36] - The Group will allocate resources to develop its core business, explore potential opportunities, and prioritize advanced technologies and solutions, particularly AI and big data applications, to foster business stability, digital transformation, enhance efficiency, and reduce costs[37] Indebtedness and Charges on Assets As of June 30, 2025, total indebtedness was approximately HK$488,002 thousand, a decrease from December 31, 2024, with bank facilities secured by directors' personal guarantees, corporate guarantees, properties, insurance contract investments, and pledged deposits, and no interest rate hedging policy currently in place Total Indebtedness | Date | Amount (HK$ thousand) | | :--- | :--- | | June 30, 2025 | 488,002 | | December 31, 2024 | 498,380 | - Bank facilities are secured by personal guarantees from directors, corporate guarantees, properties held by two directors and an associated company, insurance contract investments of approximately HK$61,609 thousand, and pledged time deposits of approximately HK$4,122 thousand[40][41] - The Group currently has no interest rate hedging policy but closely monitors interest rate risk[40] Liquidity, Financial Resources and Capital Structure The Group's capital structure remains unchanged since its 2020 listing, with HK$8,000 thousand in issued share capital, funding working capital through operating cash, bank borrowings, and external financing, resulting in a gearing ratio of 67.7% and current ratio of 1.1 as of June 30, 2025 - The Company's issued share capital is HK$8,000 thousand, comprising 800,000,000 ordinary shares in issue[42] - Working capital requirements are primarily financed by cash generated from operations, bank borrowings, and other external financing[42] Liquidity and Capital Structure Ratios | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Gearing ratio | 67.7% | 66.3% | | Current ratio | 1.1 | 1.1 | Foreign Exchange Risk The Group's significant transactions, assets, and liabilities are primarily denominated in HKD, resulting in no significant foreign exchange risk, with no hedging instruments currently used, but close monitoring and future policy consideration are in place - The Group's business is primarily denominated in Hong Kong dollars, resulting in no significant foreign exchange risk[44] - No financial instruments were used for hedging during the reporting period[44] Employees and Remuneration Policy As of June 30, 2025, the Group had 223 employees, with remuneration including salaries, discretionary year-end bonuses, other allowances, and MPF contributions, determined by qualifications, experience, and performance, and employee benefit expenses slightly increased year-on-year - As of June 30, 2025, the Group employed 223 staff (December 31, 2024: 233 staff)[45] - Remuneration packages include salaries, discretionary year-end bonuses, and other cash allowances, along with Mandatory Provident Fund (MPF) contributions[45] - Employee benefit expenses (including directors' emoluments) were approximately HK$53,050 thousand (2024: HK$52,229 thousand)[45] Material Investments, Acquisitions or Disposals During the reporting period, the Group had no material investments, acquisitions, or disposals, nor has the Board authorized any formal plans for such future activities - There were no material investments, acquisitions, or disposals during the reporting period[46] - The Board has not authorized any formal plans for material investments, acquisitions, or disposals[46] Future Plans for Material Investments or Capital Assets As of June 30, 2025, the Group had no other future plans for material investments or capital assets - There were no other future plans for material investments or capital assets[47] Capital Commitments As of June 30, 2025, the Group had no material capital commitments - There were no material capital commitments[48] Contingent Liabilities Aside from disclosed performance bonds, the Group had no other material contingent liabilities as of June 30, 2025 - Save for the performance bonds disclosed, there were no other material contingent liabilities as at June 30, 2025[49] Events After the Reporting Period No other significant events occurred after the reporting period and up to the date of this announcement - No other significant events occurred after the reporting period[50] Corporate Governance and Other Information This section covers interim dividend policy, securities transactions, directors' compliance, corporate governance practices, share options, director information changes, interim results review, and publication details Interim Dividend The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend[51] Purchase, Sale or Redemption of the Company's Listed Securities During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any of the Company's listed securities - Neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities[52] Directors' Securities Transactions The Company adopted the Model Code in Appendix C3 of the Listing Rules, and all Directors confirmed compliance with it during the reporting period - The Company has adopted the Model Code as set out in Appendix C3 of the Listing Rules[53] - All Directors confirmed compliance with the Model Code during the reporting period[53] Corporate Governance Practices Except for the combined roles of Chairman and Chief Executive Officer, the Company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules, with the Board deeming Mr Wu's dual role beneficial due to his experience and independent non-executive directors' oversight - The Company complied with the Corporate Governance Code, except for the combined roles of Chairman and Chief Executive Officer[54][55] - The Board believes Mr. Wu's dual role is in the best interest of the Group due to his industry experience, familiarity with the business, and sufficient safeguards provided by Board consultations and the independent views of three independent non-executive Directors[55] Share Options The share option scheme, conditionally adopted on June 16, 2020, aims to recognize and incentivize eligible participants, with no outstanding share options as of June 30, 2025 - The Share Option Scheme was adopted on June 16, 2020, to recognize, motivate, and retain eligible participants[56] - As of June 30, 2025, no share options had been granted and remained outstanding under the Share Option Scheme[57] Changes in Directors' Information Dr. Ho Ka Yan has been appointed as a member of the Company's Nomination Committee, effective June 30, 2025 - Dr. Ho Ka Yan was appointed as a member of the Nomination Committee with effect from June 30, 2025[58] Review of Interim Results The condensed consolidated interim financial information was not audited or reviewed by the Company's auditor but was reviewed by the Audit Committee, which, along with management, had no disagreement on accounting principles or practices - The interim financial information has not been audited or reviewed by the Company's auditor[59] - It has been reviewed by the Audit Committee, which had no disagreement with the accounting principles and practices[59] Publication of Interim Results and Interim Report The interim results announcement is published on the HKEX and Company websites, and the interim report will also be published there and dispatched to shareholders - The interim results announcement has been published on the Stock Exchange's website and the Company's website[60] - The interim report will be published on the websites and dispatched to shareholders[60] Acknowledgement The Board extends gratitude to shareholders, clients, suppliers, subcontractors, bankers, professionals for their continued support, and to the management team and staff for their dedication and contributions - The Board expresses its gratitude to all stakeholders[61] - The executive Directors are Mr. Wu Chi Chiu and Ms. Chiu Hoi Yin; the independent non-executive Directors are Mr. Yip Kit Chau, Mr. Law Hung Wai, and Dr. Ho Ka Yan[63]