Financial Performance - The company reported revenue of HKD 6,936 million for the six months ending June 30, 2025, an increase from HKD 6,547 million for the same period in 2024, representing a growth of approximately 5.93%[6]. - The loss attributable to the company's owners was HKD 3,145 million, compared to a loss of HKD 415 million for the same period in 2024, indicating a significant increase in losses[5]. - The company reported a significant loss of HKD 3,072,142 for the period, compared to a loss of HKD 355,502 in 2024, representing an increase in loss of 765.56%[64]. - The loss attributable to the company's owners was HKD 3,144,609, compared to HKD 414,693 in the prior year, indicating a substantial increase in losses[63]. - The total comprehensive loss for the period was HKD 623,675,000, with a loss attributable to owners of the company of HKD 414,693,000[67]. - The basic loss per share for the period was HKD 3.96, compared to HKD 0.52 in the previous year[63]. Impairment and Investments - The company recognized an additional impairment of HKD 2,310 million on its investment in Road King Infrastructure, reflecting a decline in recoverable amount compared to its carrying value[7]. - The company recognized a share of losses from Road King Infrastructure Limited amounting to HKD 905,719,000 for the six months ended June 30, 2025[58]. - An impairment loss of HKD 2,310,000,000 was confirmed based on fair value less costs to sell for the company's interest in Road King[58]. - The company’s equity interest in Road King Infrastructure Limited is valued at HKD 279,211,000, after accounting for cumulative impairment losses of HKD 3,820,000,000[58]. Revenue Segments - The construction segment, under the subsidiary, reported revenue of HKD 6,900 million, an increase from HKD 6,472 million in the same period last year, with a profit attributable to owners of HKD 179 million, up 20% year-on-year[12]. - The construction materials segment recorded revenue of HKD 225 million, down from HKD 324 million in the previous year, with a net profit of HKD 33 million compared to HKD 51 million previously[15]. - Revenue from construction contracts for the six months ended June 30, 2025, was HKD 6,765,731,000, up from HKD 6,342,402,000 in 2024, reflecting a growth of 6.7%[73]. - The construction, sewage treatment, and steam fuel segment generated revenue of HKD 6,899,772,000, with an external segment profit of HKD 104,154,000, compared to HKD 6,472,335,000 and HKD 86,444,000 respectively in the previous year[75][77]. Cash Flow and Financial Position - The group recorded a net cash inflow from operating activities of HKD 219,431,000, compared to HKD 128,603,000 for the same period in 2024, representing an increase of 70.7%[69]. - The company reported a net cash outflow from investing activities of HKD 502,121,000 for the six months ended June 30, 2025, compared to HKD 2,709,000 in 2024[69]. - The cash and cash equivalents at the end of the period increased to HKD 2,190,641,000 from HKD 1,513,086,000, marking a rise of 44.7%[69]. - As of June 30, 2025, total borrowings decreased from HKD 1,132 million to HKD 757 million, with current liabilities classified at HKD 159 million and non-current liabilities at HKD 598 million[23]. - The group's cash, bank deposits, and total cash amounted to HKD 2,312 million as of June 30, 2025, an increase from HKD 2,056 million at the end of 2024[25]. Shareholder Information - The company’s major shareholder, Mr. Dan Wei Biao, held 255,880,078 shares, representing 32.26% of the issued ordinary shares[29]. - Mr. Dan Wei Biao was deemed to have an interest in a total of 501,176,921 shares, accounting for 63.19% of the issued shares due to a relevant agreement[29]. - Major shareholders include Dan Wei Bao with 245,296,843 shares (30.93% of issued ordinary shares) and Cheng Yu Tung Family (Holdings) Limited with 91,134,000 shares (11.49%) each[39]. Corporate Governance and Compliance - The company has complied with the corporate governance code, except for the separation of roles between the chairman and CEO[42]. - The company has confirmed compliance with the standards of conduct regarding securities trading by all directors for the six months ended June 30, 2025[43]. - The audit committee reviewed the accounting policies and the unaudited interim financial information for the six months ended June 30, 2025[46]. Employment and Employee Costs - As of June 30, 2025, the total number of employees is 3,899, a decrease from 3,922 as of December 31, 2024[48]. - Total employee costs for the six months ended June 30, 2025, amounted to HKD 1,074,000,000, up from HKD 989,000,000 for the same period in 2024[48]. Debt and Financing - The company entered into a financing agreement for a term loan of HKD 570,000,000, with a maturity of 48 months, extendable to 60 months[50]. - The debt-to-equity ratio increased to 45.2% as of June 30, 2025, compared to 24.4% as of December 31, 2024[26]. - The net debt-to-equity ratio was -92.9% as of June 30, 2025, compared to -19.9% as of December 31, 2024, indicating that cash and deposits exceeded total borrowings[26]. Other Financial Metrics - The company’s total assets decreased to HKD 7,559,680 from HKD 8,157,450, reflecting a decline of 7.34%[65]. - Current liabilities decreased to HKD 5,554,908 from HKD 6,788,906, a reduction of 18.14%[65]. - Non-current liabilities increased to HKD 634,225 from HKD 101,238, a significant rise of 527.36%[66]. - The company's equity attributable to owners decreased to HKD 1,674,837 from HKD 4,643,718, a decline of 64.05%[66]. Market and Economic Conditions - The construction sector is facing a challenging environment due to economic slowdown, but the government has announced an increase in average annual basic engineering expenditure from approximately HKD 90 billion to HKD 120 billion for the fiscal years 2025 to 2026[22].
WAI KEE HOLD(00610) - 2025 - 中期财报