Financial Performance - Revenue decreased by approximately HK$6.2 million or 3.6%, from approximately HK$171.7 million for the six months ended 30 June 2024 to approximately HK$165.5 million for the six months ended 30 June 2025[14]. - Gross profit decreased by approximately HK$7.0 million or 21.6%, from approximately HK$32.6 million for the six months ended 30 June 2024 to approximately HK$25.6 million for the six months ended 30 June 2025[14]. - Profit attributable to owners of the Company was approximately HK$10.8 million for the six months ended 30 June 2025, compared to approximately HK$13.4 million for the same period in 2024[14]. - Basic earnings per share was approximately HK0.54 cents for the six months ended 30 June 2025, down from approximately HK0.81 cents for the six months ended 30 June 2024[14]. - The net profit for the period decreased by approximately HK$2.6 million or 19.2%, from approximately HK$13.4 million for the six months ended 30 June 2024 to approximately HK$10.8 million for the same period in 2025[47]. - Total comprehensive income for the period was HK$10,557,000, down from HK$13,743,000 in the previous year, indicating a decline of about 23%[141]. - The profit for the period ended June 30, 2025, was HK$10,832,000, compared to HK$13,402,000 for the same period in 2024, representing a decrease of approximately 19%[141]. - Basic and diluted earnings per share decreased to HK0.54 cents from HK0.81 cents, representing a decline of 33.3%[136]. Dividend and Shareholder Information - The Board resolved not to recommend the payment of an interim dividend for the six months ended 30 June 2025[14]. - The Company declared an interim dividend of approximately HK$26,586,000, with HK$10,000,000 settled in cash and HK$16,586,000 offset against amounts due from Directors and related companies[90]. - The Group resolved not to recommend the payment of an interim dividend for the six months ended June 30, 2025[89]. - No dividend has been paid or declared by the Company for the six months ended June 30, 2025[191]. Operational Insights - The Group is a structural steelwork contractor in Hong Kong, specializing in the supply, fabrication, and installation of structural steel for construction projects[16]. - Recent instability in Hong Kong's property market has weakened demand for new developments, leading to a decline in project numbers and revenue streams[18]. - The Group emphasized cost control and operational efficiency to address ongoing fluctuations and uncertainties in the market[19]. - Strategic tendering became crucial, with project teams investing additional resources in meticulous cost estimation and competitive pricing[18]. - The Group is focusing on cost control and operational efficiency to navigate the ongoing volatility in the Hong Kong real estate sector[24][32]. - The management team is actively adjusting forecasts and expenditures in real time to respond to market changes and potential risks[23][29]. - Major public and infrastructure projects are expected to drive demand for structural steelwork despite the weakness in the property market[27][31]. - The Group's proactive tendering strategies and commitment to operational discipline are aimed at ensuring financial stability during market downturns[24][33]. Financial Position and Liquidity - The Group maintained a healthy liquidity position with net current assets of approximately HK$228.8 million as of June 30, 2025, compared to approximately HK$218.9 million as of December 31, 2024[51]. - Bank borrowings as of June 30, 2025, amounted to approximately HK$5.3 million, a decrease from approximately HK$5.9 million as of December 31, 2024[52]. - The gearing ratio decreased from approximately 5.0% as of December 31, 2024, to approximately 4.7% as of June 30, 2025, primarily due to an increase in total equity[53]. - Cash and cash equivalents increased to HK$116,059,000 from HK$99,963,000, reflecting a growth of 16.0%[140]. - Total liabilities decreased to HK$47,675,000 from HK$59,923,000, a reduction of 20.4%[140]. - The company incurred a net cash outflow from investing activities of HK$2,791,000, a significant improvement from a net outflow of HK$46,024,000 in the same period last year[143]. Employee and Operational Costs - Employee benefit expenses totaled HK$17,262,000 for the six months ended June 30, 2025, a decrease of 6.3% from HK$18,429,000 in the same period of 2024[189]. - Service costs for the six months ended June 30, 2025, are approximately HK$139.9 million, maintaining stability compared to approximately HK$139.1 million for the same period in 2024[41]. - Administrative expenses increased by approximately HK$1.4 million or 12.6%, from approximately HK$10.7 million for the six months ended June 30, 2024, to approximately HK$12.1 million for the same period in 2025[45]. Market Expansion and Future Plans - The Group has established a subsidiary to enter the solar panel market, recognizing it as a promising and growing industry[34]. - There is an increasing demand for prefabricated accommodation and building materials, prompting the Group to consider expanding into this sector[34]. - The Group has two production facilities in Dongguan, PRC, allowing in-house capacity to process and fabricate structural steel tailored to customer specifications[16]. Compliance and Governance - The Company complied with the applicable code provisions of the Corporate Governance Code during the six months ended June 30, 2025[93]. - The audit committee consists of independent non-executive directors, ensuring compliance with financial reporting and risk management[124][125]. - No competing interests were reported by directors or their close associates during the six months ended June 30, 2025[122]. Share Capital and Ownership - As of June 30, 2025, the Company has no significant investment or capital asset plans beyond those disclosed in the prospectus[91]. - The Company is owned 51% by WK (BVI) Limited, which is beneficially owned by the aforementioned Directors[107]. - As of June 30, 2025, WK (BVI) Limited holds 1,020,000,000 shares, representing 51% of the company's total shares[113]. - At least 25% of the company's total issued shares were held by the public during the six months ended June 30, 2025[123].
泓基集团(02535) - 2025 - 中期财报