Interim Results Unaudited Condensed Consolidated Financial Statements This chapter presents the unaudited condensed consolidated financial statements for the six months ended June 30, 2025, reflecting the company's financial performance and position Unaudited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income Profit or Loss and Other Comprehensive Income Overview (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Revenue | 134,461 | 114,916 | | Cost of revenue | (125,638) | (106,570) | | Gross profit | 8,823 | 8,346 | | Other income | 1,425 | 2,911 | | Administrative expenses | (9,833) | (9,686) | | Profit before income tax | 415 | 1,571 | | Income tax expense | – | (259) | | Profit and total comprehensive income for the period | 415 | 1,312 | | Basic earnings per share (HK cents) | 0.03 | 0.09 | Unaudited Condensed Consolidated Statement of Financial Position Financial Position Overview (As at June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Assets | | | | Non-current assets | 11,333 | 12,568 | | Current assets | 279,040 | 346,510 | | Liabilities | | | | Current liabilities | 154,392 | 207,931 | | Non-current liabilities | 974 | 974 | | Equity | | | | Total equity | 135,007 | 150,173 | - Net current assets as at June 30, 2025, were HK$124,648 thousand, a decrease from HK$138,579 thousand as at December 31, 20244 Unaudited Condensed Consolidated Statement of Changes in Equity Equity Movement Overview (For the six months ended June 30) | Item | Share Capital (HK$'000) | Share Premium (HK$'000) | Retained Earnings (HK$'000) | Total (HK$'000) | | :--- | :--- | :--- | :--- | :--- | | As at January 1, 2025 | 14,646 | 43,436 | 91,481 | 150,173 | | Profit and total comprehensive income for the period | – | – | 415 | 415 | | Shares repurchased and cancelled | (141) | (935) | – | (1,076) | | Dividends recognised as distribution | – | – | (14,505) | (14,505) | | As at June 30, 2025 | 14,505 | 42,501 | 77,391 | 135,007 | - Share capital decreased by HK$141 thousand due to shares repurchased and cancelled during the period, resulting in a total equity reduction of HK$1,076 thousand5 - Dividends recognised as distribution amounted to HK$14,505 thousand5 Unaudited Condensed Consolidated Statement of Cash Flows Cash Flow Overview (For the six months ended June 30) | Indicator | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Net cash generated from operating activities | 18,502 | 14,507 | | Net cash generated from investing activities | 687 | 877 | | Net cash (used in) / generated from financing activities | (15,582) | 19,152 | | Net increase in cash and cash equivalents | 3,607 | 34,536 | | Cash and cash equivalents at end of period | 62,328 | 80,292 | - Net cash generated from operating activities increased by 27.5% year-on-year, from HK$14,507 thousand in 2024 to HK$18,502 thousand in 20257 - Financing activities shifted from a net cash inflow of HK$19,152 thousand in the prior period to a net cash outflow of HK$15,582 thousand in the current period7 Notes to the Unaudited Condensed Consolidated Financial Statements This chapter details the basis of preparation, accounting policies, segment revenue, key expenses, taxes, dividends, EPS, and related party transactions 1. General Information - The company was incorporated in the Cayman Islands as an exempted company on April 29, 2015, with shares listed on the Hong Kong Stock Exchange8 - The company is an investment holding company, with subsidiaries primarily providing various building services engineering systems, maintenance, and repair services8 2. Basis of Preparation - The interim financial statements are prepared in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' and applicable disclosure requirements of the Listing Rules10 - New and revised HKFRSs adopted during the period, such as HKAS 21 (Amendment) 'Lack of Exchangeability', had no significant impact on the Group's operating results or financial position11 3. Revenue and Segment Information - The Group's revenue primarily derives from building services engineering and maintenance, repair, and other services12 Revenue by Business Segment (For the six months ended June 30) | Business Segment | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Building services engineering | 129,211 | 108,920 | | Maintenance, repair and other services | 5,250 | 5,996 | | Total | 134,461 | 114,916 | Segment Results by Business Segment (For the six months ended June 30) | Business Segment | 2025 Segment Results (HK$'000) | 2024 Segment Results (HK$'000) | | :--- | :--- | :--- | | Building services engineering | 7,597 | 7,577 | | Maintenance, repair and other services | 1,226 | 769 | | Total | 8,823 | 8,346 | 4. Profit Before Income Tax Key Expense and Income Items (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Directors' remuneration | 2,973 | 6,519 | | Total staff costs | 24,858 | 30,579 | | Auditor's remuneration | 523 | 498 | | Depreciation of property, plant and equipment | 1,415 | 1,271 | | Impairment loss on trade receivables reversed | (375) | (469) | | Bank interest income | (1,047) | (831) | - Directors' remuneration significantly decreased from HK$6,519 thousand in 2024 to HK$2,973 thousand in 202516 - Total staff costs decreased by 18.6% year-on-year, from HK$30,579 thousand to HK$24,858 thousand16 5. Income Tax Expense - No Hong Kong profits tax provision was made for the six months ended June 30, 2025, as Hong Kong subsidiaries had no assessable profits18 - The Hong Kong profits tax rate is 16.5%18 6. Dividends - The Board resolved not to declare an interim dividend for the six months ended June 30, 2025 (nil for the same period in 2024)19 - A final dividend of HK$14,505,000 (HK$0.01 per share) was paid for the year ended December 31, 202419 7. Earnings Per Share Basic Earnings Per Share Calculation (For the six months ended June 30) | Indicator | 2025 | 2024 | | :--- | :--- | :--- | | Profit for the purpose of basic earnings per share (HK$'000) | 415 | 1,312 | | Weighted average number of ordinary shares for basic earnings per share (thousand shares) | 1,460,468 | 1,511,810 | | Basic earnings per share (HK cents) | 0.03 | 0.09 | - The Group had no potential dilutive ordinary shares outstanding during the reporting period21 8. Movements in Property, Plant and Equipment - Additions to property, plant and equipment amounted to HK$748,000 during the relevant period (nil for the same period last year)22 9. Movements in Intangible Assets - Amortisation of intangible assets was approximately HK$30,000 during the relevant period, consistent with the prior period23 10. Trade and Other Receivables Trade and Other Receivables (As at June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Trade receivables, net | 45,681 | 82,931 | | Deposits paid | 62,985 | 63,794 | | Other receivables and prepayments | 550 | 5,917 | | Total | 109,216 | 152,642 | - Net trade receivables significantly decreased from HK$82,931 thousand as at December 31, 2024, to HK$45,681 thousand as at June 30, 202524 Ageing Analysis of Trade Receivables (As at June 30) | Ageing | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | 0 to 30 days | 9,255 | 42,162 | | 31 to 60 days | 19,311 | 28,402 | | 61 to 90 days | 3,538 | 7,435 | | Over 90 days | 13,577 | 4,932 | 11. Trade and Other Payables Trade and Other Payables (As at June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Trade payables | 57,900 | 71,874 | | Retention payables | 12,564 | 11,752 | | Accrued subcontracting and material costs | 74,214 | 104,415 | | Accrued staff costs, other payables and accruals | 9,090 | 16,728 | | Total | 153,768 | 204,769 | - Total trade and other payables decreased from HK$204,769 thousand as at December 31, 2024, to HK$153,768 thousand as at June 30, 202526 Ageing Analysis of Trade Payables (As at June 30) | Ageing | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | 0 to 30 days | 15,469 | 46,814 | | 31 to 60 days | 13,251 | 5,798 | | 61 to 90 days | 4,783 | 485 | | Over 90 days | 24,397 | 18,777 | 12. Share Capital - As at June 30, 2025, the number of issued shares was 1,450,490,000, a decrease from 1,464,600,000 shares as at December 31, 202428 - The decrease in share capital was primarily due to the repurchase and cancellation of 14,110,000 shares28 13. Related Party Disclosures Related Party Transactions (For the six months ended June 30) | Related Party | Nature of Transaction | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | :--- | | LKW Company Limited | Rent paid/payable | 265 | 265 | | Mr. Wong and Ms. So | Rent paid/payable | 548 | 548 | Key Management Personnel Remuneration (For the six months ended June 30) | Item | 2025 (HK$'000) | 2024 (HK$'000) | | :--- | :--- | :--- | | Salaries and other allowances | 2,712 | 6,258 | | Retirement benefit scheme contributions | 27 | 27 | | Total | 2,739 | 6,285 | - Key management personnel remuneration significantly decreased from HK$6,285 thousand in 2024 to HK$2,739 thousand in 202531 Management Discussion and Analysis This chapter provides management's perspective on the Group's business review, financial performance, liquidity, share capital, and corporate governance Business Review and Outlook - The Group's principal business is providing various building services engineering systems in Hong Kong, including mechanical ventilation, air-conditioning, electrical, plumbing, drainage, and fire services systems, along with maintenance and repair services32 - The Group will continue its key business strategies, including undertaking larger projects, expanding service scope by applying for additional licenses, and strengthening the engineering department by recruiting qualified employees33 Financial Review - Revenue increased by approximately 17% from HK$114.9 million in the same period of 2024 to approximately HK$134.5 million in 2025, primarily due to an increase in project contract amounts34 - Cost of revenue increased by approximately 18% year-on-year, consistent with revenue growth35 - Gross profit increased by approximately 6.0% year-on-year to HK$8.8 million, but the overall gross profit margin slightly decreased from 7.3% to 6.6%36 - Administrative expenses slightly increased by 1% to HK$9.8 million, mainly due to higher administrative staff salaries and other administrative expenses37 - Profit and total comprehensive income for the period decreased from HK$1.3 million in the same period of 2024 to HK$0.4 million in 2025, primarily due to the net effect of decreased other income and increased administrative expenses38 - The current ratio was approximately 1.8 times as at June 30, 2025 (December 31, 2024: approximately 1.7 times), indicating improved liquidity40 - The gearing ratio was zero as at June 30, 2025 (December 31, 2024: zero), indicating no external borrowings41 - The Group pledged approximately HK$5.4 million in bank deposits and approximately HK$4.7 million in leasehold land and buildings to banks as collateral for bank financing43 - All of the Group's revenue-generating businesses are transacted in Hong Kong Dollars, facing no significant foreign exchange risk, and no hedging policy is in place45 Share Capital Structure - As at June 30, 2025, the company's issued share capital was HK$14,504,900, with 1,450,490,000 issued shares46 - During the period, 14,110,000 ordinary shares were repurchased and cancelled46 Capital Commitments - As at June 30, 2025, the Group had no material capital commitments47 Future Plans for Material Investments and Capital Assets - The Group had no other material investment or capital asset plans as at June 30, 202548 Material Acquisitions and Disposals of Subsidiaries, Associates and Joint Ventures - During the relevant period, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures49 Contingent Liabilities - As at June 30, 2025, the Group had no material contingent liabilities50 Employees and Remuneration Policy - As at June 30, 2025, the Group employed 112 employees (December 31, 2024: 113 employees)51 - Staff costs (including directors' remuneration) were approximately HK$24.9 million, a decrease from the same period last year51 - Remuneration policy is based on employee qualifications, performance, and development potential, offering attractive benefits including retirement, medical, and training sponsorships51 Material Investments Held - The Group held no material investments for the six months ended June 30, 202553 Disclosure of Interests A. Directors' and Chief Executive's Interests and Short Positions in Shares, Underlying Shares or Debentures Directors' Long Positions in Shares (As at June 30, 2025) | Name of Director | Capacity/Nature of Interest | Number of Shares | Percentage of Shareholding | | :--- | :--- | :--- | :--- | | Mr. Wong | Interest in controlled corporation | 653,000,000 | 45.02% | | Mr. Wong | Beneficial owner | 384,490,000 | 26.51% | | Mr. Wong | Spouse's interest | 8,000,000 | 0.55% | | Ms. So | Spouse's interest | 1,037,490,000 | 71.53% | | Ms. So | Beneficial owner | 8,000,000 | 0.55% | | Mr. Tang Shun Man | Beneficial owner | 160,000 | 0.01% | | Mr. Lau Kwok Lok | Beneficial owner | 300,000 | 0.02% | Directors' Long Positions in Ordinary Shares of Associated Corporations (As at June 30, 2025) | Name of Director | Name of Associated Corporation | Capacity/Nature of Interest | Number of Shares | Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Mr. Wong | Golden Luck | Beneficial owner | 99 | 99% | | Ms. So | Golden Luck | Beneficial owner | 1 | 1% | B. Substantial Shareholders' and Other Persons' Interests and Short Positions in Shares, Underlying Shares or Debentures Substantial Shareholders' Long Positions in Shares (As at June 30, 2025) | Name of Shareholder | Capacity/Nature of Interest | Number of Shares | Long/Short Position | Percentage of Shareholding | | :--- | :--- | :--- | :--- | :--- | | Golden Luck | Beneficial owner | 653,000,000 | Long Position | 45.02% | Competing Interests - During the relevant period, no director or controlling shareholder had any business or interest that competed or might compete with the Group's business59 Directors' Material Interests in Contracts - During the relevant period, no director had any material interest in any contract of significance to the Group's business to which the company or any of its subsidiaries was a party60 Purchase, Sale or Redemption of the Company's Listed Securities - The company repurchased a total of 14,110,000 ordinary shares for approximately HK$1,058,250 during the relevant period, all of which were cancelled6162 - The Board believes the share repurchases demonstrate the company's confidence in its business outlook and prospects, creating value for shareholders62 Corporate Governance Code - The company has complied with the applicable provisions of the Corporate Governance Code, except for Code Provision C.2.1 (roles of chairman and chief executive should be separate)63 - Mr. Wong serves as both Chairman and Chief Executive Officer; the Board believes this structure enhances strategy formulation and implementation efficiency and will review the need for a separate CEO when necessary63 Code for Securities Transactions by Directors - The Group has adopted a code for securities transactions by directors, and all directors confirmed compliance throughout the relevant period64 Dividends - The Board resolved not to declare any interim dividend for the relevant period65 Share Option Scheme - The company adopted a share option scheme on September 10, 2015; as of the report date, no share options have been granted, exercised, cancelled, or lapsed66 - Under the mandate, 128,000,000 share options can be granted under the scheme, exercisable for 128,000,000 shares66 Events After the Reporting Period - No material events requiring disclosure occurred after the end of the relevant period and up to the date of this report67 Audit Committee - The Audit Committee comprises three independent non-executive directors, with Mr. Tam Chun Chung as Chairman68 - The Audit Committee reviewed the Group's unaudited condensed consolidated financial statements for the relevant period and found them prepared in compliance with applicable accounting standards and Listing Rules68 By Order of the Board - This report was issued by Mr. Wong King Kwong, Chairman and Executive Director, on behalf of the Board on August 28, 202569 - Executive Directors include Mr. Wong King Kwong, Ms. So Nui Ho, and Mr. Tang Shun Man; Independent Non-executive Directors include Mr. Chung Yuk Ming, Mr. Lau Kwok Lok, and Mr. Tam Chun Chung69
立基工程控股(01690) - 2025 - 中期财报