建鹏控股(01722) - 2025 - 中期业绩

Interim Results Announcement This announcement presents the unaudited condensed consolidated financial information for the six months ended June 30, 2025, reviewed by the audit committee - This announcement presents Kin Pang Holdings Limited's unaudited condensed consolidated financial information for the six months ended June 30, 2025[2] Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income For the six months ended June 30, 2025, revenue grew 3.1% to MOP 348,671 thousand, gross profit surged, and the company achieved a profit of MOP 427 thousand Key Data from Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income | Indicator | June 30, 2025 (MOP thousand) | June 30, 2024 (MOP thousand) | Change (MOP thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 348,671 | 338,279 | 10,392 | 3.1% | | Direct costs | (333,333) | (333,755) | 422 | -0.1% | | Gross profit | 15,338 | 4,524 | 10,814 | 239.0% | | Other income and gains/(losses) | 1,097 | 1,340 | (243) | -18.1% | | Administrative expenses | (13,538) | (16,200) | 2,662 | -16.4% | | Reversal of expected credit losses | 121 | 878 | (757) | -86.2% | | Operating profit/(loss) | 3,018 | (9,458) | 12,476 | N/A | | Finance costs | (2,136) | (1,807) | (329) | 18.2% | | Profit/(loss) before income tax | 882 | (11,265) | 12,147 | N/A | | Income tax (expense)/credit | (455) | 17 | (472) | N/A | | Profit/(loss) and total comprehensive income/(loss) for the period | 427 | (11,248) | 11,675 | N/A | | Basic earnings/(loss) per share (MOP cents) | 0.04 | (1.02) | 1.06 | N/A | Unaudited Condensed Consolidated Statement of Financial Position As of June 30, 2025, total assets slightly decreased to MOP 426,367 thousand, while total equity increased and total liabilities decreased, improving the financial structure Key Data from Condensed Consolidated Statement of Financial Position | Indicator | June 30, 2025 (MOP thousand) | December 31, 2024 (MOP thousand) | Change (MOP thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Assets | | | | | | Non-current assets | 123,326 | 125,895 | (2,569) | -2.0% | | Current assets | 303,041 | 317,111 | (14,070) | -4.4% | | Total assets | 426,367 | 443,006 | (16,639) | -3.8% | | Equity | | | | | | Total equity | 161,206 | 160,779 | 427 | 0.3% | | Liabilities | | | | | | Non-current liabilities | 1,163 | 532 | 631 | 118.6% | | Current liabilities | 263,998 | 281,695 | (17,697) | -6.3% | | Total liabilities | 265,161 | 282,227 | (17,066) | -6.0% | | Total equity and liabilities | 426,367 | 443,006 | (16,639) | -3.8% | Notes This section details company information, accounting policies, segment data, revenue, expenses, taxation, dividends, earnings per share, and financial instruments 1. General Information Kin Pang Holdings Limited, listed in Hong Kong, primarily engages in civil engineering in Macau and Hong Kong, controlled by Mr. Kung Kin Yee and Ms. Chui Fong Lan - The company's principal activities are civil engineering in Macau and Hong Kong[7] - The company is ultimately controlled by Mr. Kung Kin Yee (Chairman and Chief Executive Officer) and his spouse Ms. Chui Fong Lan[6] 2. Basis of Preparation and Principal Accounting Policies Financial statements are prepared under HKAS 34 and Listing Rules using historical cost, with no significant impact from new HKFRS amendments - The financial statements are prepared in accordance with Hong Kong Accounting Standard 34 and the Listing Rules, using the historical cost convention[9][10] - Newly adopted HKFRS amendments had no significant impact on the financial position or performance[11] 3. Segment Information The Group's sole reportable segment, construction and ancillary services, saw revenue of MOP 348,671 thousand and significant profit growth, with strong Hong Kong market expansion - The Group has only one reportable operating segment: construction and ancillary services[12] Segment Revenue and Profit | Indicator | June 30, 2025 (MOP thousand) | June 30, 2024 (MOP thousand) | Change (MOP thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Segment revenue | 348,671 | 338,279 | 10,392 | 3.1% | | Segment profit | 15,459 | 5,402 | 10,057 | 186.2% | Revenue from External Customers by Geographical Location | Geographical Location | June 30, 2025 (MOP thousand) | June 30, 2024 (MOP thousand) | Change (MOP thousand) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Macau | 277,360 | 306,075 | (28,715) | -9.4% | | Hong Kong | 71,311 | 32,204 | 39,107 | 121.4% | | Total | 348,671 | 338,279 | 10,392 | 3.1% | - For the six months ended June 30, 2025, revenue from three customers accounted for over 10% of total revenue, with Customer B contributing MOP 104,956 thousand[19][20] 4. Revenue from Contracts with Customers Construction and ancillary services generated MOP 348,671 thousand in revenue, with MOP 694,849 thousand in remaining performance obligations, largely due within one year Revenue from Contracts with Customers | Revenue Source | June 30, 2025 (MOP thousand) | June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Construction and ancillary services | 348,671 | 338,279 | Transaction Price Allocated to Remaining Performance Obligations | Expected Recognition Period | June 30, 2025 (MOP thousand) | June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Within one year | 371,059 | 233,872 | | More than one year but not more than two years | 323,790 | 275,123 | | Total | 694,849 | 508,995 | 5. Other Income and Other Gains/(Losses) Total other income and gains decreased by 18.1% to MOP 1,097 thousand, primarily due to a reduction in miscellaneous income Other Income and Other Gains/(Losses) | Item | June 30, 2025 (MOP thousand) | June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Interest income | 221 | 236 | | Gain/(loss) on disposal of property, plant and equipment | 76 | (79) | | Amortisation of deferred government grants | 82 | 82 | | Other income | 718 | 1,011 | | Total | 1,097 | 1,340 | - Other income primarily refers to fees received from scrap sales, insurance claims, and provision of manpower services[23] 6. Direct Costs and Administrative Expenses Total direct costs and administrative expenses decreased by 0.9% to MOP 346,871 thousand, driven by materials, subcontractor costs, employee benefits, and depreciation Total Direct Costs and Administrative Expenses | Item | June 30, 2025 (MOP thousand) | June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Materials and subcontractor costs | 244,023 | 236,767 | | Depreciation of property, plant and equipment | 15,643 | 10,682 | | Depreciation of right-of-use assets | 1,471 | 1,449 | | Employee benefit costs | 62,689 | 79,724 | | Legal and professional fees | 2,327 | 2,349 | | Expenses relating to short-term leases | 10,683 | 9,037 | | Transportation and delivery costs | 1,568 | 2,068 | | Others | 8,467 | 7,879 | | Total | 346,871 | 349,955 | 7. Finance Costs Finance costs increased by 18.2% to MOP 2,136 thousand, mainly driven by higher interest expenses on bank borrowings Breakdown of Finance Costs | Item | June 30, 2025 (MOP thousand) | June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Interest expense on bank borrowings | 1,955 | 1,638 | | Interest expense on bank overdrafts | – | 25 | | Interest expense on lease liabilities | 100 | 144 | | Interest expense on machinery acquisition | 81 | – | | Total | 2,136 | 1,807 | 8. Income Tax (Expense)/Credit The company incurred an income tax expense of MOP 455 thousand, a shift from a credit, primarily due to increased Macau Complementary Tax Analysis of Income Tax (Expense)/Credit | Item | June 30, 2025 (MOP thousand) | June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Macau Complementary Tax | (455) | – | | Deferred tax | – | 17 | | Total | (455) | 17 | - Macau Complementary Tax is calculated at 12% on estimated assessable profits exceeding MOP 600,000[26] - The company is not subject to income tax in the Cayman Islands, British Virgin Islands, and Hong Kong[26][27] 9. Dividends The Board resolved not to declare any interim dividend for the six months ended June 30, 2025, consistent with the prior period - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[29] 10. Earnings/(Loss) Per Share Basic earnings per share improved significantly to MOP 0.04 cents from a loss, with no diluted EPS presented due to no potential ordinary shares Basic Earnings/(Loss) Per Share | Indicator | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Profit/(loss) attributable to owners of the Company (MOP thousand) | 427 | (11,248) | | Weighted average number of ordinary shares (thousand shares) | 1,100,000 | 1,100,000 | | Basic earnings/(loss) per share (MOP cents) | 0.04 | (1.02) | - Diluted earnings/(loss) per share are not presented as there were no potential ordinary shares outstanding during both periods[33] 11. Trade Receivables Total trade receivables decreased to MOP 55,746 thousand, with credit terms typically 0-60 days and a reduced loss allowance Trade Receivables | Item | June 30, 2025 (MOP thousand) | December 31, 2024 (MOP thousand) | | :--- | :--- | :--- | | Trade receivables - from contracts with customers | 56,344 | 71,371 | | Less: Loss allowance | (598) | (678) | | Total | 55,746 | 70,693 | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (MOP thousand) | December 31, 2024 (MOP thousand) | | :--- | :--- | :--- | | Within 30 days | 40,274 | 60,085 | | 31 to 60 days | 9,717 | 2,609 | | 61 to 90 days | 1,691 | 4,733 | | Over 90 days | 4,662 | 3,944 | | Total | 56,344 | 71,371 | - The carrying amounts of trade receivables are primarily denominated in Macanese Pataca[36] 12. Trade and Other Payables Total trade and other payables decreased to MOP 149,323 thousand, including trade payables, retention payables, and salaries payable Trade and Other Payables | Item | June 30, 2025 (MOP thousand) | December 31, 2024 (MOP thousand) | | :--- | :--- | :--- | | Trade payables | 93,485 | 106,382 | | Retention payables | 29,066 | 30,989 | | Salaries payable | 11,540 | 14,110 | | Accruals and other payables | 15,232 | 12,736 | | Total | 149,323 | 164,217 | - Credit terms granted by suppliers/subcontractors generally range from 0 to 60 days[36] - Retention payables are interest-free and expected to be settled within one year after the expiry of the defect liability period[37] 13. Bank Borrowings Total bank borrowings decreased to MOP 98,237 thousand, with a 3.82% effective annual interest rate; some breaches occurred but immediate repayment was not demanded Composition of Bank Borrowings | Item | June 30, 2025 (MOP thousand) | December 31, 2024 (MOP thousand) | | :--- | :--- | :--- | | Secured bank borrowings | 77,637 | 87,871 | | Unsecured bank borrowings | 20,600 | 18,500 | | Total | 98,237 | 106,371 | - The effective annual interest rate for bank borrowings was 3.82% (December 31, 2024: 4.06%)[40] - As of June 30, 2025, bank borrowings of approximately MOP 3,470 thousand were in breach of financial covenants, triggering cross-defaults of approximately MOP 38,438 thousand, but banks did not demand immediate repayment[41][42] - Bank borrowings and other bank facilities are secured by property, plant and equipment (MOP 8,942 thousand) and pledged bank deposits (MOP 22,016 thousand)[45] Management Discussion and Analysis This section reviews business performance, financial condition, liquidity, risk management, employee matters, board changes, and future strategies Business Review The Group, an integrated construction contractor in Macau and Hong Kong, secured 16 new projects worth MOP 202.8 million, with 28 projects outstanding totaling MOP 694.9 million - The Group is an integrated construction contractor providing construction and ancillary services, with key clients including hotel and casino owners, Macau Water Supply Company, the Macau government, and other private developers[46] - For the six months ended June 30, 2025, 16 construction and ancillary service projects were secured, with a total contract value of MOP 202.8 million[47] - As of June 30, 2025, there were 28 outstanding projects with a total remaining contract value of MOP 694.9 million[47] Financial Review Financial performance improved significantly with revenue growth, a surge in gross profit, and a return to profitability, despite increased finance costs Revenue Total revenue grew 3.1% to MOP 348.7 million, driven by larger construction and ancillary service projects Total Revenue | Indicator | June 30, 2025 (MOP million) | June 30, 2024 (MOP million) | Change (%) | | :--- | :--- | :--- | :--- | | Total revenue | 348.7 | 338.3 | 3.1% | Gross Profit and Gross Profit Margin Gross profit surged to MOP 15.3 million, with margin improving to 4.4%, due to higher-margin projects and effective cost control Gross Profit and Gross Profit Margin | Indicator | June 30, 2025 (MOP million) | June 30, 2024 (MOP million) | Change (%) | | :--- | :--- | :--- | :--- | | Gross profit | 15.3 | 4.5 | 239.0% | | Gross profit margin | 4.4% | 1.3% | +3.1 percentage points | Other Income and Other Gains/(Losses) Other income and gains/(losses) decreased by 15.4% to MOP 1.1 million, mainly due to lower miscellaneous income Other Income and Other Gains/(Losses) | Indicator | June 30, 2025 (MOP million) | June 30, 2024 (MOP million) | | :--- | :--- | :--- | | Other income and gains/(losses) | 1.1 | 1.3 | Reversal of Impairment Losses on Financial Assets under ECL Model Reversal of impairment losses under the ECL model decreased from MOP 0.9 million to MOP 0.1 million Reversal of Expected Credit Losses | Indicator | June 30, 2025 (MOP million) | June 30, 2024 (MOP million) | | :--- | :--- | :--- | | Reversal of impairment losses | 0.1 | 0.9 | Administrative Expenses Administrative expenses decreased by 16.7% to MOP 13.5 million, mainly due to lower employee costs Administrative Expenses | Indicator | June 30, 2025 (MOP million) | June 30, 2024 (MOP million) | | :--- | :--- | :--- | | Administrative expenses | 13.5 | 16.2 | Finance Costs Finance costs increased by 16.7% to MOP 2.1 million, mainly due to higher interest expenses on bank borrowings Finance Costs | Indicator | June 30, 2025 (MOP million) | June 30, 2024 (MOP million) | | :--- | :--- | :--- | | Finance costs | 2.1 | 1.8 | Income Tax (Expense)/Credit The current period incurred an income tax expense of MOP 455 thousand, a shift from a credit in the prior period Income Tax (Expense)/Credit | Indicator | June 30, 2025 (MOP thousand) | June 30, 2024 (MOP thousand) | | :--- | :--- | :--- | | Income tax (expense)/credit | (455) | 17 | Profit/(Loss) and Total Comprehensive Income/(Loss) for the Period Total comprehensive income for the period was MOP 0.4 million, reversing the MOP 11.3 million comprehensive loss from the prior period Profit/(Loss) and Total Comprehensive Income/(Loss) for the Period | Indicator | June 30, 2025 (MOP million) | June 30, 2024 (MOP million) | | :--- | :--- | :--- | | Total comprehensive income/(loss) | 0.4 | (11.3) | Basic Earnings/(Loss) Per Share Basic earnings per share significantly improved to MOP 0.04 cents from a loss of MOP 1.02 cents in the prior period Basic Earnings/(Loss) Per Share | Indicator | June 30, 2025 (MOP cents) | June 30, 2024 (MOP cents) | | :--- | :--- | :--- | | Basic earnings/(loss) per share | 0.04 | (1.02) | Interim Dividend The Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[57] Property, Plant and Equipment Property, plant and equipment totaled MOP 111.2 million, with MOP 12.4 million in acquisitions, and some assets pledged for bank borrowings Property, Plant and Equipment | Indicator | June 30, 2025 (MOP million) | December 31, 2024 (MOP million) | | :--- | :--- | :--- | | Property, plant and equipment | 111.2 | 115.0 | - Acquisitions of property, plant and equipment amounted to approximately MOP 12.4 million during the period[58] - Approximately MOP 8.9 million of property, plant and equipment are pledged as collateral for bank borrowings and other bank facilities[58] Corporate Finance and Risk Management The Group manages cash prudently, maintaining a stable liquidity ratio and reduced gearing, while actively monitoring foreign exchange, interest rate, and credit risks Liquidity, Financial Resources and Capital Structure The Group has strong liquidity with MOP 28.5 million in cash, a stable current ratio of 1.1x, and a reduced gearing ratio of 60.9% due to lower bank borrowings Liquidity and Financial Resources | Indicator | June 30, 2025 (MOP million) | December 31, 2024 (MOP million) | | :--- | :--- | :--- | | Bank balances and cash | 28.5 | 28.7 | | Pledged bank deposits | 22.0 | 27.2 | | Bank borrowings | 98.2 | 106.4 | Financial Ratios | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Current ratio | 1.1 times | 1.1 times | | Gearing ratio | 60.9% | 66.2% | - The decrease in gearing ratio was primarily due to a reduction in bank borrowings[62] Capital Commitments As of June 30, 2025, capital commitments for property, plant and equipment purchases totaled MOP 5.1 million Capital Commitments | Item | June 30, 2025 (MOP million) | December 31, 2024 (MOP million) | | :--- | :--- | :--- | | Purchase of property, plant and equipment | 5.1 | 6.4 | Contingent Liabilities Banks provided MOP 55.3 million in performance guarantees for customers, with management deeming claims against the Group improbable Performance Guarantees | Item | June 30, 2025 (MOP million) | December 31, 2024 (MOP million) | | :--- | :--- | :--- | | Bank performance guarantees | 55.3 | 92.1 | Foreign Exchange Risk The Group faces foreign exchange risk from non-functional currency transactions and balances, with no current hedging policy but ongoing monitoring - The Group is exposed to foreign exchange risk but currently has no foreign currency hedging policy[65] Interest Rate Risk Interest rate risk stems from bank deposits and floating-rate borrowings, with no financial derivatives used for hedging - Interest rate risk primarily arises from bank deposits and floating-rate bank borrowings[66] - The Group does not use financial derivatives to hedge interest rate risk[66] Credit Risk Credit risk stems from trade receivables, contract assets, and bank deposits, with concentration risk managed through credit limits and regular assessments - Credit risk primarily arises from trade receivables, contract assets, deposits, other receivables, amounts due from joint ventures, pledged bank deposits, and bank balances[67] - The Group has concentrated credit risk with its largest customer and top five customers, accounting for 33.8% and 88.0% of total trade receivables, respectively[68] Employees As of June 30, 2025, the Group had 294 full-time employees, with total staff costs of MOP 62.7 million, and remuneration based on qualifications and annual reviews Number of Employees and Costs | Indicator | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Number of full-time employees | 294 | 295 | | Total staff costs (MOP million) | 62.7 | 79.7 | Share Option Scheme The 2017 share option scheme, for rewarding contributions, had no options granted, exercised, cancelled, or lapsed, with 100,000,000 shares available - The share option scheme was adopted in 2017 to reward eligible participants for their contributions to the Group[70] - As of June 30, 2025, no share options were granted, exercised, cancelled, or lapsed[70] - The total number of shares available for issue under the share option scheme is 100,000,000 shares, representing approximately 9.01% of the issued shares[70] Changes in Directors' Information Mr. Cheung Kin Wing resigned from Tze Keung Services Centre, Mr. Chan Wai Keung resigned as executive director, and Ms. Chui Fong Lan and Mr. Cheung Kin Wing joined the Nomination Committee - Mr. Cheung Kin Wing resigned as a director of Tze Keung Services Centre Limited on April 15, 2025[71] - Mr. Chan Wai Keung resigned as an executive director on May 18, 2025[72] - Ms. Chui Fong Lan and Mr. Cheung Kin Wing were appointed as members of the Nomination Committee[72] Prospects and Strategies The Group expects sustained Macau construction, driven by tourism and non-gaming diversification, and continued Hong Kong demand from government infrastructure, while focusing on cost control, efficiency, and diversification - Macau's construction activity is expected to continue, driven by the recovery of tourism and gaming industries and the transformation towards non-gaming sectors[73] - Hong Kong's construction sector growth is expected to slow, but government investments in transport, energy infrastructure, and housing will provide a foundation for sustained demand[73] - The company will prioritize strict cost control, enhanced operational efficiency, and the adoption of innovative construction techniques to mitigate risks from inflation, high interest rates, and geopolitical tensions[74] - The Group is committed to business diversification in Macau and Hong Kong, capturing emerging opportunities while managing regional economic fluctuations[75] Interim Dividend The Board does not recommend an interim dividend for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend for the six months ended June 30, 2025[77] Purchase, Sale or Redemption of the Company's Listed Securities Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the six months ended June 30, 2025 - During the period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities[78] Events After Reporting Period As of this announcement date, the Board is unaware of any significant disclosable events after the reporting period - As of the date of this announcement, the Board is not aware of any significant disclosable events after the reporting period[79] Corporate Governance Practices The Group adopted the Corporate Governance Code and Model Code, complying with provisions except for the combined Chairman and CEO role, which the Board believes ensures consistent leadership and protects shareholder interests Corporate Governance Code The company complies with the Corporate Governance Code, except for the combined Chairman and CEO role, which the Board believes ensures consistent leadership and maintains power balance - The company has adopted and complied with all applicable provisions of the Corporate Governance Code, except for the deviation from code provision C.2.1 where Mr. Kung Kin Yee holds both the Chairman and Chief Executive Officer roles[80][81] - The Board believes that combining the roles of Chairman and Chief Executive Officer ensures consistent leadership within the Group, and the presence of three independent non-executive directors safeguards shareholders' interests[81] Model Code for Securities Transactions The company adopted the Model Code for Securities Transactions, and all directors confirmed compliance during the period - The company has adopted the Model Code for Securities Transactions, and all directors have confirmed compliance with the code[82] Audit Committee The Audit Committee, chaired by Mr. Cheung Kin Wing and comprising three independent non-executive directors, reviewed the Group's accounting principles and financial statements - The Audit Committee comprises three independent non-executive directors, with Mr. Cheung Kin Wing as chairman[83] - The committee has reviewed the Group's accounting principles, condensed consolidated financial statements, and interim results announcement[83] Other Information This section details the publication of interim results, expresses gratitude to stakeholders, and lists the Board of Directors' composition Publication of Interim Results and Interim Report This interim results announcement is available on the HKEX and company websites, with the interim report to follow for shareholders - The interim results announcement has been published on the HKEX website (www.hkexnews.hk) and the company's website (www.kinpang.com.mo)[84](index=84&type=chunk) Acknowledgement The Board extends sincere gratitude to management, staff, shareholders, business partners, and other professionals for their support - The Board thanks management, employees, shareholders, business partners, and other professionals for their support[85] Board of Directors As of the announcement date, the Board includes two executive directors (Mr. Kung Kin Yee, Ms. Chui Fong Lan) and three independent non-executive directors - The Board of Directors includes two executive directors (Mr. Kung Kin Yee, Ms. Chui Fong Lan) and three independent non-executive directors (Mr. Cheung Wai Lun, Mr. Cheung Kin Wing, Mr. Chiu Chi Pang)[86]