Financial Performance - Revenue for the six months ended September 30, 2025, was approximately HKD 359.2 million, a decrease of about 25.2% compared to HKD 479.97 million for the same period in 2024[4] - Gross profit for the six months ended September 30, 2025, was approximately HKD 14.5 million, down from HKD 34.1 million for the same period in 2024[4] - Gross margin decreased from approximately 7.1% for the six months ended September 30, 2024, to about 4.0% for the six months ended September 30, 2025[4] - Profit attributable to owners of the company for the six months ended September 30, 2025, was approximately HKD 3.0 million, compared to HKD 12.2 million for the same period in 2024[4] - Earnings per share for the six months ended September 30, 2025, was approximately HKD 0.73, down from HKD 2.94 for the same period in 2024[4] - The group's total segment profit for the six months was HKD 8.098 million, compared to HKD 22.039 million for the same period last year, reflecting a decrease of 63.2%[17] - The group reported an operating profit before tax of HKD 4.065 million for the six months ended September 30, 2025, compared to HKD 15.072 million for the same period in 2024[17] - The construction and machinery leasing segment reported a profit of approximately HKD 5,759,000 for the six months ended September 30, 2025, compared to HKD 13,033,000 in 2024[21] - Net profit decreased from approximately HKD 12.2 million for the six months ended September 30, 2024, to about HKD 3.0 million for the current period, primarily due to reduced revenue from construction engineering and machinery leasing activities[33] Revenue Breakdown - Revenue from construction engineering was HKD 244.779 million, down 26.0% from HKD 330.662 million in the previous year[13] - Revenue from construction machinery leasing was HKD 114.437 million, a decline of 23.4% from HKD 149.308 million in the prior year[13] - Revenue from construction engineering was approximately HKD 244.8 million, contributing about 68.1% of total revenue, down from HKD 330.7 million and 68.9% in the previous period[38] - Revenue from construction machinery leasing was approximately HKD 114.4 million, compared to HKD 149.3 million in the previous period[37] - Construction machinery rental income for the period was approximately HKD 114.4 million, accounting for 31.9% of total revenue, a slight increase from 31.1% in the previous period[42] Assets and Liabilities - Non-current assets as of September 30, 2025, amounted to approximately HKD 143.2 million, down from HKD 181.4 million as of March 31, 2025[6] - Current assets as of September 30, 2025, totaled approximately HKD 398.96 million, compared to HKD 409.36 million as of March 31, 2025[6] - Total liabilities as of September 30, 2025, were approximately HKD 230.27 million, down from HKD 274.31 million as of March 31, 2025[7] - Total equity attributable to owners of the company as of September 30, 2025, was approximately HKD 290.71 million, compared to HKD 293.72 million as of March 31, 2025[7] - Total assets as of September 30, 2025, were HKD 542.194 million, down from HKD 590.761 million as of March 31, 2025[20] - Total liabilities as of September 30, 2025, were HKD 248.470 million, a decrease from HKD 300.050 million as of March 31, 2025[20] - Trade receivables as of September 30, 2025, amounted to HKD 240,688,000, down from HKD 290,105,000 as of March 31, 2025, with an allowance for doubtful debts of HKD 33,443,000[29] - Trade payables decreased to HKD 51,459,000 as of September 30, 2025, from HKD 73,558,000 as of March 31, 2025[30] - Bank borrowings as of September 30, 2025, totaled HKD 56,497,000, a decrease from HKD 59,312,000 as of March 31, 2025, with a significant portion due within one year[31] Corporate Governance and Compliance - The company has adopted corporate governance practices to enhance shareholder value and protect stakeholder interests[60] - The company has complied with the corporate governance code, with the exception of a deviation regarding the separation of the roles of Chairman and CEO[61] - The audit committee, consisting of three independent non-executive directors, reviewed the unaudited interim financial information for the period[66] - The interim results announcement was published on the Hong Kong Stock Exchange and the company's website[67] Dividends and Future Outlook - The board of directors did not recommend the payment of an interim dividend for the six months ended September 30, 2025[4] - The company did not declare or recommend any dividends for the six months ended September 30, 2025, and 2024[26] - The outlook indicates a potential slowdown in market demand due to the completion of major projects, but the government continues to prioritize infrastructure and land development[50] - The group remains cautiously optimistic about long-term development despite challenges such as aging workforce and rising construction costs[51] Employee and Operational Metrics - As of September 30, 2025, the group employed 349 employees, a decrease from 467 employees as of September 30, 2024[54] - Total employee costs for the period amounted to approximately HKD 81.5 million, down from HKD 123.9 million for the six months ended September 30, 2024[54] - Administrative expenses decreased to approximately HKD 10.5 million from HKD 11.6 million, attributed to a reduction in employee numbers[45] Other Financial Information - Other income for the six months ended September 30, 2025, totaled HKD 3,737,000, a decrease from HKD 3,943,000 in 2024, with government subsidies increasing significantly from HKD 164,000 to HKD 1,755,000[22] - Financing costs decreased to HKD 3,124,000 for the six months ended September 30, 2025, down from HKD 6,183,000 in 2024, primarily due to lower bank borrowings and lease liabilities[23] - The deferred tax and income tax expenses for the six months ended September 30, 2025, were both HKD 1,052,000, a significant reduction from HKD 2,890,000 in 2024[24] - Financing costs decreased by approximately 49.5% to about HKD 3.1 million, due to a reduction in outstanding interest-bearing liabilities and lower applicable interest rates[46] - The group’s bank balance as of September 30, 2025, was approximately HKD 29.8 million, with interest-bearing liabilities at about HKD 97.1 million, resulting in a debt-to-equity ratio of approximately 33.0%[48] - Other income decreased from approximately HKD 3.9 million to about HKD 3.7 million, mainly due to a reduction in non-operating income[44] Projects and Market Conditions - The group has 22 ongoing projects with a total uncompleted contract value of approximately HKD 943.1 million, with 14 projects expected to be completed by March 31, 2026[39] - The Hong Kong government plans to inject an additional HKD 30 billion into infrastructure and housing projects over the next three years, providing stable potential demand for the construction industry[34] - The public sector's construction project reserves remain substantial, although the overall project rollout speed is slower than expected[34] - The group will continue to closely monitor market conditions and adopt prudent measures to assess business opportunities to support sustainable growth and enhance shareholder value[35]
进升集团控股(01581) - 2026 - 中期业绩