Revenue Performance - Total revenue from construction and engineering services for the six months ended June 30, 2025, was approximately HK$51.4 million, representing an increase of approximately 108.6% compared to HK$24.6 million for the same period in 2024[15]. - The Group's total revenue increased by approximately HK$28.0 million or approximately 85.4% from approximately HK$32.8 million for the six months ended 30 June 2024 to approximately HK$60.8 million for the six months ended 30 June 2025[35]. - Revenue from construction and engineering services increased by approximately HK$26.8 million or approximately 108.6% from approximately HK$24.6 million to approximately HK$51.4 million during the same period, primarily due to the award of a major slope works project[36]. - Revenue for the six months ended June 30, 2025, was HK$60.8 million, a significant increase of 85.5% compared to HK$32.8 million for the same period in 2024[94]. - Revenue from sales of luxury products increased by approximately HK$1.5 million or approximately 43.6% from approximately HK$3.5 million to approximately HK$5.0 million, driven by stable growth in the luxury watches sector[38]. Project and Contract Management - Public sector projects accounted for approximately 88.6% of total revenue in the construction and engineering segment, up from 80.6% in the previous year[15]. - As of June 30, 2025, the Group had 47 construction contracts on hand, with a total outstanding contract sum of approximately HK$278.2 million, compared to 39 contracts and HK$288.9 million as of December 31, 2024[20]. - The increase in revenue was primarily due to the award of a major slope works project in the second half of 2024[15]. - The Group anticipates completing its current contracts on or before 2028, indicating a stable project pipeline[20]. - The Group's strategy for construction and engineering services includes a variety of operational initiatives to enhance service delivery in Hong Kong[20]. Financial Performance - The net loss for the six months ended 30 June 2025 was approximately HK$7.8 million, a decrease from the net loss of approximately HK$8.1 million for the same period in 2024, resulting in a net loss margin of approximately 12.8% compared to 24.8% in 2024[62][67]. - Gross profit for the six months ended June 30, 2025, amounted to approximately HK$2.8 million, representing an increase of approximately 18.1% compared to approximately HK$2.4 million for the same period in 2024[43]. - Loss for the period narrowed to HK$7.8 million from HK$8.1 million year-over-year, indicating a slight improvement in financial performance[94]. - The Group's total borrowings as of 30 June 2025 were lease liabilities of approximately HK$1.9 million, resulting in a gearing ratio of approximately 1.3%, up from 0.4% as of 31 December 2024[71][76]. - Total equity decreased to HK$153.8 million as of June 30, 2025, from HK$161.5 million at the end of 2024, reflecting the impact of ongoing losses[96]. Cost Management - Administrative expenses decreased by approximately 35.2% to approximately HK$8.4 million for the six months ended June 30, 2025, compared to approximately HK$12.9 million for the same period in 2024[51]. - The total staff costs for the six months ended 30 June 2025 amounted to approximately HK$11.3 million, a decrease from approximately HK$13.4 million for the same period in 2024[81][83]. - The Group aims to maintain a reasonable gross profit margin while remaining competitive in tender submissions, which may affect the number of contracts awarded[24]. - The Group is adopting a cautious approach to inventory management of luxury products to lower costs amid economic uncertainties[34]. Asset and Liability Management - Current assets totaled HK$177.8 million, slightly down from HK$184.9 million at the end of 2024, primarily due to a decrease in cash and bank balances[96]. - The Group's foreign exchange exposure mainly arises from cash and bank deposits denominated in US dollars, amounting to approximately HK$38.3 million as of 30 June 2025[74][79]. - Trade receivables increased to HK$8,742,000 as of June 30, 2025, up from HK$7,182,000 as of December 31, 2024, reflecting a growth of approximately 21.7%[165]. - Total trade and other receivables amounted to HK$60,875,000 as of June 30, 2025, up from HK$56,438,000 as of December 31, 2024, indicating an overall increase of approximately 7.4%[165]. - The total amount due from joint operators was HK$18,107,000 as of June 30, 2025, compared to HK$17,283,000 as of December 31, 2024, reflecting an increase of approximately 4.8%[165]. Market and Operational Risks - The Group will continue to monitor market risks and uncertainties to mitigate potential adverse impacts on its operations[33]. - The Board believes that ongoing claims and litigations will not have a material adverse impact on the Group's operations or financial position[87]. - The Group has adopted a prudent financial management approach towards its treasury policy, closely monitoring liquidity to meet funding requirements[66][70]. Future Outlook and Strategic Initiatives - The Group plans to explore business expansion opportunities beyond construction and engineering services in Hong Kong to enhance future development and strengthen revenue bases[27]. - The Group's new reporting segment, sales of luxury products, was introduced to diversify its revenue base[119]. - The Group has approximately HK$2.4 million of unused net proceeds from its listing, which will be gradually applied for the acquisition of site facilities and equipment by the end of 2025[91].
致浩达控股(01707) - 2025 - 中期财报