Financial Performance - Revenue for the six months ended September 30, 2025, was approximately HKD 326.2 million, a decrease of about 17.8% compared to HKD 396.9 million in the same period of 2024[2] - Gross profit for the same period was approximately HKD 2.0 million, down approximately 91.9% from HKD 24.7 million in 2024, resulting in a gross margin of 0.6% compared to 6.2% in 2024[2][3] - The loss attributable to owners of the company was approximately HKD 12.9 million, a significant decline from a profit of HKD 4.6 million in the same period of 2024[2] - Basic and diluted loss per share was approximately HKD 0.014, compared to earnings per share of HKD 0.005 in 2024[2][3] - Revenue from foundation and site preparation works decreased to approximately HKD 315.6 million, a reduction of about HKD 64.1 million or 16.9% compared to HKD 379.7 million for the six months ended September 30, 2024[45] - The net loss attributable to owners of the company was approximately HKD 12.9 million, compared to a net profit of approximately HKD 4.6 million for the six months ended September 30, 2024[52] Cash Flow and Assets - Cash flow from operating activities showed a net outflow of HKD 10.7 million, compared to a net inflow of HKD 35.2 million in 2024[7] - Total assets less current liabilities amounted to HKD 143.9 million as of September 30, 2025, compared to HKD 145.2 million as of March 31, 2025[4] - The cash and cash equivalents increased slightly by HKD 228, totaling HKD 50.3 million as of September 30, 2025, compared to HKD 59.2 million in 2024[7] - Non-current assets decreased from HKD 75.0 million as of March 31, 2025, to HKD 64.9 million as of September 30, 2025[4] - Total assets as of September 30, 2025, were approximately HKD 272.1 million, down from HKD 329.3 million as of March 31, 2025[54] - Total liabilities as of September 30, 2025, were approximately HKD 134.4 million, a decrease from HKD 194.1 million as of March 31, 2025[54] Share and Dividend Information - The company did not recommend any interim dividend for the six months ended September 30, 2025[2] - The group did not declare or propose any dividends for the six months ended September 30, 2025, consistent with the previous reporting period[20] - The company completed a placement of up to 186,600,000 shares at a price of HKD 0.085 per share, representing a discount of approximately 15.84% to the closing price on the placement agreement date[66] - The total net proceeds from the placement amounted to approximately HKD 15.3 million, with an estimated net amount of HKD 15.2 million after deducting placement commissions and expenses[67] - The intended use of the net proceeds includes HKD 6.1 million for new contract business development, HKD 4.6 million for settling outstanding payables, and HKD 4.6 million for general operating expenses[67] Operational Highlights - The group secured 23 new contracts during the reporting period, with a total original contract value of approximately HKD 357.6 million, and completed 15 projects valued at approximately HKD 279.1 million[44] - As of September 30, 2025, the total amount of unbilled revenue from contracts was approximately HKD 658.6 million, an increase from HKD 509.8 million as of September 30, 2024[44] - The group aims to enhance project management effectiveness and implement strict cost control measures in response to increasing economic pressures and competition in the foundation and site preparation engineering sector[43] - The group is actively seeking opportunities to expand its scope of work in the construction industry, aiming to transition from subcontractor to main contractor in foundation engineering[42] Employee and Governance Information - As of September 30, 2025, the company employed a total of 582 employees, a slight increase from 573 employees as of September 30, 2024, with total employee costs approximately HKD 107.5 million during the reporting period[65] - The company has adopted a share option scheme to incentivize employees and directors, with no options granted or exercised since its adoption on September 21, 2017[73] - The company has complied with the corporate governance code during the reporting period, except for the separation of roles between the Chairman and CEO[69] - The audit committee, consisting of three independent non-executive directors, is responsible for reviewing financial information and monitoring internal controls[79] - There were no significant labor disputes or difficulties in recruiting and retaining experienced employees during the reporting period[65] Financial Costs and Expenses - Financial costs increased to HKD 891,000 for the six months ended September 30, 2025, from HKD 767,000 in 2024, primarily due to higher bank loan interest[16] - Administrative expenses rose to approximately HKD 19.7 million, an increase of about HKD 0.7 million or 3.7% from HKD 19.0 million for the six months ended September 30, 2024, primarily due to higher employee costs[49] - Financial costs increased to approximately HKD 0.9 million, up by about HKD 0.1 million or 12.5% compared to HKD 0.8 million for the six months ended September 30, 2024[50] Trade Receivables and Payables - Trade receivables as of September 30, 2025, amounted to HKD 27,418,000, a decrease from HKD 32,575,000 as of March 31, 2025, with an expected credit loss provision of HKD 647,000[13] - The aging analysis of trade receivables shows that HKD 23,098,000 (86.7%) were within 30 days as of September 30, 2025, compared to HKD 31,603,000 (98.7%) as of March 31, 2025[29] - Trade payables as of September 30, 2025, were HKD 67,275,000, a decrease from HKD 116,754,000 as of March 31, 2025[32] - The group has a credit period of 15 to 75 days for its trade customers, indicating a structured approach to credit management[29] Capital Expenditure - Capital expenditure during the reporting period was approximately HKD 1.3 million, significantly lower than HKD 36.8 million for the six months ended March 31, 2025[59] - The group acquired machinery and equipment at a cost of approximately HKD 1,260,000 during the current period, significantly lower than HKD 20,703,000 in the previous period[23]
荣智控股(06080) - 2026 - 中期业绩