Revenue and Profitability - The Group's revenue for the Period was approximately HK$217.7 million, a decrease of approximately HK$169.8 million or 43.8% compared to approximately HK$387.5 million for the Previous Period due to project delays and a downturn in the construction market [17]. - Profit for the period decreased by approximately HK$13.5 million, primarily due to a decrease in gross profit of approximately HK$21.3 million [27]. - Revenue for the six months ended September 30, 2025, was HK$217,711,000, a decrease of 43.7% compared to HK$387,480,000 for the same period in 2024 [80]. - Gross profit for the period was HK$35,875,000, down 37.5% from HK$57,190,000 in the previous year [80]. - Profit for the period was HK$11,635,000, representing a decline of 53.7% compared to HK$25,085,000 in 2024 [80]. - Total comprehensive income for the period was HK$12,215,000, down 52.3% from HK$25,673,000 in the prior year [80]. Expenses and Cost Management - Administrative and other operating expenses decreased by approximately HK$5.1 million or 18.4% to approximately HK$22.6 million for the Period, mainly due to savings from Directors' discretionary bonuses [19]. - Finance costs for the Period were approximately HK$0.6 million, a decrease of approximately 50.0% compared to approximately HK$1.2 million for the Previous Period, due to reduced bank borrowings [20]. - Employee benefit expenses totaled HK$40,977,000, down 6.1% from HK$43,645,000 in the previous year [119]. - The total employee benefit expenses for the six months ended 30 September 2025 were approximately HK$41.0 million, down from HK$43.6 million in the same period last year [48]. Financial Position and Ratios - The Group's current ratio improved to approximately 3.0 times as of 30 September 2025, up from approximately 2.4 times as of 31 March 2025 [31]. - Net current assets were approximately HK$235.2 million as of 30 September 2025, compared to approximately HK$243.4 million as of 31 March 2025 [34]. - The gearing ratio decreased to 4.2% as of 30 September 2025, down from approximately 5.0% as of 31 March 2025 [33]. - Total equity as of September 30, 2025, was HK$256,905,000, a decrease from HK$261,398,000 as of March 31, 2025 [81]. Market Conditions and Strategic Initiatives - The construction sector in Hong Kong experienced an 18.6% decrease in the Gross Value of Construction Works performed by main contractors at private sector sites compared to the same period last year [12]. - The market shows signs of potential recovery, supported by recent interest rate cuts and government initiatives to develop partnerships with the Middle East [12]. - The Group plans to adopt a prudent fiscal strategy, including resource integration and a reduction in headcount, to manage costs during the economic recovery [13]. - The Group's strategic initiatives include streamlining operations to adapt to the challenging market conditions [13]. Shareholder Information and Governance - The Group did not recommend any interim dividend for the six months ended 30 September 2025, compared to HK$4.0 cents per ordinary share in the previous year [47]. - The Company confirmed compliance with the Corporate Governance Code throughout the period, maintaining high standards of governance practices [71]. - There were no significant transactions or contracts involving Directors or controlling shareholders were reported during the period [66][70]. Segment Information - Segment revenue for Structural Engineering Works was HK$195,283,000, while revenue from Supply, Installation and Trading of Building Material Products was HK$22,428,000, totaling HK$217,711,000 for the six months ended September 30, 2025 [99]. - Segment profit for Structural Engineering Works was HK$20,987,000, and for Supply, Installation and Trading of Building Material Products it was HK$2,440,000, resulting in a total segment profit of HK$23,427,000 [99]. Cash Flow and Investments - Net cash used in operating activities for the six months ended September 30, 2025, was HK$28,465,000, compared to net cash generated of HK$16,527,000 in 2024, reflecting a negative change of HK$45,000,000 [84]. - Cash and cash equivalents at the end of the period on September 30, 2025, were HK$68,652,000, down from HK$132,701,000 at the end of September 30, 2024, a decrease of 48.3% [84]. - The company reported a net cash outflow from investing activities of HK$3,360,000 for the six months ended September 30, 2025, compared to a net inflow of HK$2,807,000 in 2024 [84]. Compliance and Legal Matters - The company has established an audit committee to ensure compliance with applicable accounting standards and adequate disclosures [73]. - There are no pending legal cases with material claims against the Group as of September 30, 2025 [152]. - No provisions have been made for the Group's obligations under guarantees, as it is unlikely that the bank will claim losses [151].
应力控股(02663) - 2026 - 中期财报