Financial Performance - Revenue for the eighteen months ended June 30, 2025, was HKD 451.30 million, an increase of HKD 132.15 million or 41.41% compared to HKD 319.15 million for the year ended December 31, 2023[3]. - Net loss attributable to shareholders for the eighteen months ended June 30, 2025, was HKD 161.36 million, an increase of HKD 24.02 million compared to HKD 137.34 million for the year ended December 31, 2023[3]. - Basic and diluted loss per share for the eighteen months ended June 30, 2025, was HKD 2.93, compared to HKD 2.49 for the year ended December 31, 2023[3]. - Total comprehensive loss for the eighteen months ended June 30, 2025, was HKD 279.26 million, compared to HKD 189.42 million for the year ended December 31, 2023[5]. - The group reported a total loss of approximately HKD 259,384,000 for the eighteen-month period ending June 30, 2025, with a total loss amounting to HKD 26,763,000[16]. - The net loss before tax for the eighteen months ended June 30, 2025, was HKD 262,061,000, compared to a loss of HKD 205,459,000 for the year ended December 31, 2023, indicating an increase in losses of about 27.5%[32]. - The company reported a net loss attributable to shareholders of HKD 161,361,000 for the year ended December 31, 2023, compared to a loss of HKD 137,336,000 for the previous year, indicating a worsening of approximately 17.5%[32]. - The group recorded a net loss attributable to shareholders of approximately HKD 161,360,000, an increase of about HKD 24,024,000 or 17.49% compared to the previous fiscal year, primarily due to increased sales costs and operating expenses[85]. Revenue Sources - The increase in revenue was primarily due to higher income from the water supply business and rental income from commercial properties in China[3]. - Revenue from water supply and related services increased to HKD 398,390,000 for the eighteen-month period ending June 30, 2025, compared to HKD 286,829,000 for the year ending December 31, 2023, representing a growth of approximately 38.8%[19]. - The group generated revenue from property management and leasing services amounting to HKD 35,295,000 for the eighteen-month period ending June 30, 2025, compared to HKD 22,776,000 for the year ending December 31, 2023[19]. - Total revenue for the reporting segments reached HKD 451,301,000 for the eighteen months ended June 30, 2025, compared to HKD 319,147,000 for the year ended December 31, 2023, representing a growth of approximately 41.3%[32]. - Revenue from water supply and related services was approximately HKD 415,699,000, up 39.46% or about HKD 117,620,000 from the previous fiscal year, driven by increased installation, construction, and maintenance income[84]. - The property investment and development segment recorded revenue of approximately HKD 35,295,000, an increase of about HKD 14,486,000, attributed to market recovery and improved consumer confidence[84]. - The financial services segment reported revenue of approximately HKD 307,000, a decrease of about HKD 48,000 or 18.53% due to enhanced credit monitoring for margin clients[85]. Assets and Liabilities - Non-current assets as of June 30, 2025, totaled HKD 1,393.90 million, a decrease from HKD 1,517.09 million as of December 31, 2023[6]. - Current liabilities as of June 30, 2025, were HKD 872.00 million, compared to HKD 785.10 million as of December 31, 2023[7]. - Net assets as of June 30, 2025, were HKD 329.79 million, down from HKD 613.51 million as of December 31, 2023[7]. - The total assets of the company as of June 30, 2025, amounted to HKD 1,903,138,000, a decrease from HKD 2,042,382,000 as of December 31, 2023[34]. - The total liabilities increased to HKD 1,573,347,000 as of June 30, 2025, from HKD 1,428,869,000 as of December 31, 2023[34]. - Total liabilities to total assets ratio increased to 83% as of June 30, 2025, compared to 69% as of December 31, 2023[82]. Cash Flow and Financing - The group’s cash and bank balances were approximately HKD 168,873,000, with total current liabilities netting around HKD 362,769,000 as of June 30, 2025[46]. - The group is currently implementing plans to alleviate liquidity issues and improve financial conditions, with ongoing negotiations with banks and suppliers[46]. - The group has unutilized bank financing of approximately HKD 379,370,000 as of June 30, 2025, and expects to renew all bank financing upon maturity[18]. - The group’s cash flow from operations is deemed sufficient to meet foreseeable expenses, but additional debt or equity financing may be required for large-scale expansions or acquisitions[83]. - The group’s bank borrowings decreased from HKD 866,798,000 as of December 31, 2023, to HKD 742,361,000 by June 30, 2025, primarily due to loan repayments during the fiscal period[74]. Cost and Expenses - The company experienced increased sales costs and operating expenses, contributing to the rise in net loss[3]. - Cost of revenue for the eighteen months was approximately HKD 478,064,000, an increase of about HKD 176,688,000 compared to the previous fiscal year[51]. - General and administrative expenses increased by 66.33% to HKD 112,915,000, driven by higher employee costs and foreign exchange losses[57]. - Financial expenses rose by 21.61% to HKD 59,100,000, primarily due to increased interest rates on bank loans[59]. - Employee costs, including directors' remuneration, totaled HKD 80,054,000 for the eighteen months ended June 30, 2025, up from HKD 60,859,000 for the year ended December 31, 2023, marking an increase of about 31.5%[24]. Dividends and Shareholder Returns - The board of directors did not recommend any final dividend for the eighteen months ended June 30, 2025, consistent with the previous year[3]. - The company did not declare any dividends for the eighteen months ended June 30, 2025, consistent with the previous year[40]. - The company has not paid or proposed any dividends for the eighteen months ending June 30, 2025, consistent with the previous year[104]. Governance and Compliance - The audit committee, consisting of three independent non-executive directors, has reviewed the financial statements for the eighteen months ending June 30, 2025, ensuring compliance with applicable accounting standards and regulations[110]. - The company appointed a new auditor, Changqing (Hong Kong) CPA Limited, effective July 25, 2025, following the resignation of the previous auditor[111]. - The company will issue its annual report by October 31, 2025, containing all information required by the listing rules for the eighteen months ending June 30, 2025[113]. Future Plans and Strategies - The group plans to enhance liquidity and operating cash flow through negotiations with suppliers and seeks to restructure its subsidiaries to resolve disputes and settle outstanding payments related to ongoing litigation[18]. - The group plans to focus on property investment and development to provide stable income sources while exploring potential projects in China and overseas to enhance market competitiveness[87]. - The group has entered into a framework agreement to acquire retail and commercial properties in Guangzhou, with indicative consideration not exceeding RMB 260 million (approximately HKD 285.71 million)[90]. - The group has also signed a non-binding memorandum of understanding for the potential acquisition of equity interests in properties in Guangdong, with indicative consideration of not less than RMB 300 million (approximately HKD 334.34 million)[93].
环球实业科技(01026) - 2025 - 年度业绩